Nordbi http://www.nordbi.org/ Wed, 21 Sep 2022 19:26:56 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 http://www.nordbi.org/wp-content/uploads/2021/04/nordbi-icon-150x150.png Nordbi http://www.nordbi.org/ 32 32 The Fintech Fix 21/09/2022 | Fintech Finance http://www.nordbi.org/the-fintech-fix-21-09-2022-fintech-finance/ Wed, 21 Sep 2022 15:46:38 +0000 http://www.nordbi.org/the-fintech-fix-21-09-2022-fintech-finance/

Welcome to The Fintech Fix, where we cover the biggest fintech stories of the working week. Whether it’s the next groundbreaking trend in crypto, or a new partnership that’s about to change the global economic landscape, this is the place to keep up with the breaking news of the future.

In with the New

This week’s big stories can be characterised by one word: beginnings. Fintechs are thinking outside the box, and developing products and services more attuned to the new age. The mysterious newfound credit card issuing fintech, Power, has finally emerged from stealth. After securing $16.1 million in seed funding, and $300 million in a credit facility, the startup is lifting the curtain on its operations and sharing their vision of credit to the world.

“After just over twelve months, Power is already live in the market and on track to issue thousands of credit cards this year,” says Randy Fernando, Founder and CEO at Power. “Looking ahead to next year, we plan to issue tens of thousands of cards across consumer, commercial and banking categories and process millions of dollars in transaction volume.”

San Mateo Unicorn, Tipalti, takes a further splash into the Eurozone, recently setting up a new Benelux office in Amsterdam. The company, currently valued at $8.3 billion+, previously launched in the UK last October and has now amassed over 100 UK-based customers. Hitting the central European market through the Netherlands will only grow Tipalti’s presence in the region with their leading automated global payables solutions.

Looking more into product expansion, global payroll and compliance solution, Deel, has announced the launch of two new products, Deel Shield and Deel API/the Deel Partner Program. The former is designed for contractor compliance, giving businesses the agency to hire across the world with a low level of misclassification risk or liability. Deel API is more geared toward demands in-house, allowing businesses to deliver their HR products with Deel’s hiring software.

Commenting on the launch, Alex Bouaziz, Co-Founder & CEO at Deel, said: “We built Deel Shield to empower businesses to hire global talent at record speed with zero misclassification risks and enjoy all the benefits that come with working with a contractor, without the HR or compliance hassle. This way, it’s our liability, not yours. As for Deel API – this is just the beginning. We have big plans to expand our API’s capabilities so companies can build more global hiring solutions.”

We are also at the dawn of a new payments revolution with the introduction of the UK’s New Payments Initiative and ISO 20022. In our recent Virtual Arena, we brought together the brilliant minds of Nationwide, ACI Worldwide, and Pay.UK, to talk about NPA and the infrastructure necessary to facilitate faster, and more secure, payments. In the VA, leaders Mark Nalder, Shane Warman, and Andrew Moseley spoke in depth about the possibilities afforded by faster payments and how the industry needs to work together to create a solid ecosystem if we want to make our payment goals actionable.

Working Together to Work Apart

Something else is brewing in the world of payments. In an international effort to improve Cross Border Payments (CBP) and align them with the aims of the European Commission’s EU digital identity wallet program – a consortium of Europe’s identity experts have proposed to deliver a large-scale, cross-border payments pilot.

In the effort, Denmark, Germany, Iceland, Italy, Latvia and Norway, led by NOBID (Nordic-Baltic eID Project), plan on showing how payments and ID can be combined across borders and in multiple currencies. With a focus on payments, the pilot will leverage the existing payment infrastructures from the respective countries to facilitate features like instate payments and issuance.

Parallel to this grand collaboration, NCR Corporation, a tech provider for banks, retailers and restaurants that it will be splitting into two independent, publicly traded companies. Hopefully concluding by the end of 2023, one company will be focused solely on ATMs, and the other on digital commerce – this will be done in a tax-free process. The aim of this separation is to further bolster up the growth of NCR’s product offerings, by having their teams focus on building those specific services.

“This announcement is the right next step in NCR’s transformation. The separation would create two strong companies at scale, each with distinctive business goals and capital structures and allocation, as well as increased flexibility to innovate,” said Michael D. Hayford, CEO of NCR.

M&A are going worldwide this week with news of global payments provider PayU securing the endorsement of Columbian regulatory authorities to acquire electronic payments fintech, Ding. Already well integrated into the Columbian online payment space, PayU will have more reach to create and develop online products fitted to a developing customer base.

This is a huge win for Columbia, as with the further building of a robust payments ecosystem, the country can enforce financial inclusion amongst the unbanked and financially compromised members of its population.

Big Funding Rounds are Back!

After the understandable dry period in funding from the last two quarters, fintechs have bounced back, delivering a promising outlook for investment in 2023. B2B/C fintech Roslay, has attracted $10 million in their Seed Round, led by Fin Capital. The backing will filter into the startup’s growing effort to deliver their financial HR products to companies who want to build stronger employee loyalty and financial education.

Roslay is unique in their corporate offering as it aims to help European employees get paid in a system which suits them, rather than the consensus on monthly paychecks. With further investment, this could be huge for corporate working in Europe, changing everything from employee satisfaction to operations.

Focused again in the Eurozone, HSBC has awarded pan-European digital banking platform, Monese, with $35 million in investment, bringing their total funding to $208 million. The investment will go toward Monese’s further development of their Platform as a Service business.

Taylan Turan, Group Head of Retail Banking and Strategy, Wealth and Personal Banking at HSBC, said: “HSBC is continually pioneering new wealth and banking innovations for our digitally-savvy customers – we want to help clients make smarter decisions so they can meet their financial goals with innovative digital tools. This new partnership is a key step towards helping us deliver digital wealth and banking tools at pace and scale, combining Monese’s fintech credentials with our own global wealth and banking capabilities.”

Landing squarely in the African insurtech sphere, Turaco, a provider of insurance products and services to over a million people in Nigeria, Kenya, and Uganda, has secured $10 million in a Series A equity round, led by AfricInvest. The company, who specialise in L&H, and vehicle-related insurance services, is on a mission to free people of financial insecurity caused by potential unexpected health risks. With their partnerships and backing from leading financial institutions like Enza Capital, Global Partnerships, and Zephyr Acorn, the company can further reach their audience of low income earners who may be put off from protection due to the high fees and interest rates involved.

Turaco CEO and co-founder Ted Pantone said, “We are proud to help drive insurance adoption, especially among low-income earners. 90% of our customers have never had insurance before, but the surprising thing is that people really want to buy insurance! They just don’t have easy access to products that really work for them. This investment enables us to scale our business to serve millions of insurance customers across our current markets and beyond. We are thrilled to have these great new investors join our team for this next season of growth.”

As is evident, new beginnings do not come without new struggles, and with something as integral to society as payments and insurance, institutions must work together in partnership to build a more inclusive fintech community.

That concludes your weekly Fintech Fix! Stay tuned for another round of big fintech buzz, right here at FF News.

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Asian stocks fall ahead of Fed interest rate decision http://www.nordbi.org/asian-stocks-fall-ahead-of-fed-interest-rate-decision/ Tue, 20 Sep 2022 20:13:26 +0000 http://www.nordbi.org/asian-stocks-fall-ahead-of-fed-interest-rate-decision/

TOKYO — Asian stocks mostly fell on Wednesday as investors eagerly awaited a widely expected interest rate hike from the U.S. Federal Reserve as it strives to crush the highest inflation in decades. decades.

Japan’s benchmark Nikkei 225 fell 1.4% in morning trade to 27,308.66. Australia’s S&P/ASX 200 fell 1.4% to 6,712.40. The South Korean Kospi fell 0.9% to 2,346.62. Hong Kong’s Hang Seng fell 1.4% to 18,524.48, while the Shanghai Composite fell 0.2% to 3,115.08.

Global tensions add to uncertainties. The Russian-controlled regions of eastern and southern Ukraine have announced plans to begin voting this week to become integral parts of Russia.

Kremlin-backed efforts to gobble up four regions could pave the way for Moscow to escalate the war against Ukraine. Russian President Vladimir Putin recently lambasted what he described as US efforts to preserve global dominance and ordered officials to increase arms production.

“Asian stocks traded in defensive mode on Wednesday. There were geopolitical tensions over Russia and Ukraine, where separatists are due to hold a referendum in some regions, and traders were waiting for an update from Putin,” he said. said Anderson Alves of ActivTrades.

On Wall Street, the S&P 500 index fell 1.1% to 3,855.93 as more than 90% of stocks and all sectors in the benchmark lost ground. The Dow Jones Industrial Average fell 1% to 30,706.23. The Nasdaq composite also fell 1% to 11,425.05.

The selloff came as traders waited to see how much the Fed would hike interest rates at its meeting that ends Wednesday.

“The market is definitely bracing for the worst and you’re seeing some mild selling pressure,” said Paul Kim, CEO of Simplify ETFs.

Retailers, technology stocks, healthcare companies and banks were among the highest weightings in the market. Best Buy fell 4.1%, Microsoft fell 0.8%, Abbott Laboratories fell 1.7% and JPMorgan Chase closed down 2%. Exxon Mobil fell 0.8%.

Small company stocks fell more than the broader market. The Russell 2000 Index fell 1.4% to 1,787.50.

Bond yields mostly rose slightly. The 10-year Treasury yield, which influences mortgage rates, rose to 3.56% from 3.52% late Monday and is trading at its highest levels since 2011.

The 2-year Treasury yield, which tends to track Fed action expectations, held steady at 3.95%, hovering around its highest levels since 2007.

Stocks fell and Treasury yields rose as the Fed hiked borrowing costs in hopes of curbing the highest inflation in four decades.

Fed Chairman Jerome Powell bluntly warned in a speech last month that rate hikes “would cause pain.”

“He did everything he could to signal that this would be another aggressive move,” said Liz Young, head of investment strategy at SoFi.

The Fed is expected to raise its key short-term rate by three-quarters of a point for the third time at its meeting on Wednesday. That would take its benchmark rate, which affects many consumer and business loans, to a range of 3% to 3.25%, the highest level in 14 years, and zero at the start of the year.

Beyond that, investors will focus on what Powell has to say, both in the Fed’s latest interest rate policy statement and at an afternoon press conference, to whether the central bank remains primarily focused on reducing inflation, or if there is a hint the Fed is paying more attention to the impact of higher rates on the economy.

Wall Street fears the rate hikes will go too far in slowing economic growth and pushing the economy into a recession.

Ford fell 12.3% for the S&P 500’s biggest drop after cutting its third-quarter profit forecast as a parts shortage will leave it with up to 45,000 unfinished vehicles on its lots at the end of the quarter. September 30. Last week, FedEx and General Electric warned investors of the damage to their operations from inflation.

The United States is not alone in suffering from runaway inflation or dealing with the impact of efforts to curb high prices.

The Bank of Japan began a two-day monetary policy meeting on Wednesday, although analysts expect the central bank to stick to its accommodative monetary policy. Rate decisions from Norway, Switzerland and the Bank of England come next.

In energy trading, benchmark U.S. crude rose 15 cents to $84.09 a barrel in electronic trading on the New York Mercantile Exchange. It fell 1.5% on Tuesday, weighing on energy stocks. Brent crude, the international standard, added 22 cents to $90.84 a barrel.

In currency trading, the US dollar fell from 143.74 yen to 143.81 Japanese yen. The euro fell to 99.64 cents from 99.73 cents.

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AP Business Writers Damian J. Troise and Alex Veiga contributed to this report.

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Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

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Private equity could become a ‘pyramid scheme’, warns Danish pension fund http://www.nordbi.org/private-equity-could-become-a-pyramid-scheme-warns-danish-pension-fund/ Tue, 20 Sep 2022 17:23:10 +0000 http://www.nordbi.org/private-equity-could-become-a-pyramid-scheme-warns-danish-pension-fund/

A senior executive at Denmark’s largest pension fund has likened the private equity industry to a pyramid scheme, warning that buyout groups are increasingly selling companies to themselves and their peers on a scale that “is not a good deal”.

Mikkel Svenstrup, chief investment officer at ATP, expressed concern that over the past year more than 80% of portfolio company sales by the private equity funds in which ATP has invested were either to another buyout group or were “continuation fund” agreements. , where a private equity group switches it between two different funds that it controls.

“We’re a big fund investor, we have hundreds of funds and thousands of portfolio companies,” he said. “Not a good deal, is it?” This is the beginning, potentially, I say “potentially”, of a pyramid scheme. Everyone is selling to each other. . . Banks lend against it. These are the concerns I shared.

ATP is a major investor in private equity funds. It has $119 billion under management and has committed money to 147 buyout funds, according to PitchBook data.

Svenstrup’s remarks, made at the IPEM private equity conference in Cannes, are similar to those made by Amundi Asset Management chief investment officer Vincent Mortier in June. Mortier said parts of the private equity industry “kinda feel like a pyramid scheme.”

Svenstrup said the “exponential growth” of the private equity industry in recent years, as investors poured cash into his funds, would “at some point” stop, adding that it was “just a matter of time”.

“It’s not that I think the private equity market is going to fall off a cliff,” Svenstrup said. “We’re just going to look [at] potentially low returns and high costs. He added that the industry plays an important role as a “key driver in moving certain companies through stages and eventually, hopefully, going public or being held by long-term owners.” .

ATP is reducing the number of private equity groups it commits money to, he told the conference.

“Obviously we looked very carefully. . . who refined [returns figures by] using bridge financing, leveraged funds. . . all these tricks they do to manipulate TRI,” he said. The IRR, or internal rate of return, is a key metric by which private equity groups report returns to their investors.

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Electric vehicles are changing the transport experience in European cities http://www.nordbi.org/electric-vehicles-are-changing-the-transport-experience-in-european-cities/ Mon, 19 Sep 2022 22:00:42 +0000 http://www.nordbi.org/electric-vehicles-are-changing-the-transport-experience-in-european-cities/

Electric vehicles (EVs) are reshaping the urban environment for the better, helping city dwellers breathe cleaner air and lower their carbon emissions.

City councils across Europe have implemented measures to boost the uptake of electric vehicles as part of efforts to reduce the number of combustion engines on the roads and the continent has some of the most electrified cities in the world. .

In this article, PYMNTS looks at three European cities that have been at the forefront of the electric vehicle revolution and some of the initiatives that are helping the continent on the path to a more sustainable electric future.

amsterdam

As part of the city’s ambitious plan to achieve net zero carbon emissions by 2025, Amsterdam has introduced several incentive schemes for electric vehicles to add to the already pro-electric environment in the Netherlands. .

As well as being able to benefit from national incentives such as a reduction in vehicle tax and government-funded subsidies for electric taxis and delivery vans, drivers in Amsterdam are further encouraged to switch to electricity through a series of local programs.

The city has implemented measures that include parking privileges for emission-free taxis, clean zones to keep polluting vehicles away, and even the exclusion of parking permits for gas-powered vehicles.

Of course, in a city famous for its bikes, electric vehicle technology is also having an impact. Indeed, since 2018, electric bikes have exhausted city ​​bikes in the Netherlands and over half a million e-bikes were sold in the country last year.

London

With 2.6 million registered cars, London is one of the places with the most to gain from electrification efforts.

Additionally, as Transport for London (TfL) has declaredall Londoners live in areas that fall short of the World Health Organization (WHO) target for particulate matter and nitrogen dioxide, making the transition to electric vehicles an urgent public health concern.

With the lives of Londoners at stake, the city’s mayor, Sadiq Khan, has stepped up efforts to reduce the presence of polluting vehicles in the city. Currently, TfL is examining the possibility of extending the Ultra Low Emission Zone (ULEZ), where charges apply to anyone driving older, more polluting vehicles, to the whole city in 2023.

Read more: UK e-scooter regulations create opportunity and uncertainty in the micromobility sector

In addition to Khan’s clean air initiatives, private sector players like Uber have also stepped up efforts to put more electric vehicles on London’s streets.

The global ride-sharing company has declared that “London is the global leader in Uber’s electrification efforts with more electric vehicles on Uber in London than any other city on the app.” The company said it is on track to have 10,000 electric vehicles in the city by the end of this year and expects all Uber vehicles in London to be fully electric by 2025.

Learn more: Mobility Weekly: Madrid regulates, London electrifies

To help Uber drivers make the switch, the company has partnered with Nigerian vehicle finance startup Moove to offer a rent-to-own scheme to drivers who will see Uber contribute to their weekly reimbursements.

stockholm

Stockholm is one of the most advanced cities in the world when it comes to moving away from fossil fuels, with plans that all of its public transport runs on electricity or biodiesel by 2025.

In fact, Sweden in general has had some of the highest EV adoption rates in the world. In August, Mobility Sweden reported that 28% of all new car registrations were for fully electric vehicles, with hybrids accounting for a further 18%.

In a sign of the strength of the electric vehicle market in the Nordics, Carla, an electric vehicle market, raised $20 million earlier this year to help fund its expansion into the rest of Europe.

Continue reading: Carla’s $20m funding to grow European EV market

To better respond to the growing number of electric vehicle drivers, Stockholm continued to build the infrastructure needed to charge new electric cars.

By 2026, Parking in Stockholm aims to offer charging stations in all its garages and aims for more than 100,000 new electric car charging stations by 2030. This would be equivalent to one EV charging station for every 16 people living in Stockholm County.

For all PYMNTS EMEA coverage, subscribe daily EMEA Newsletter.

New PYMNTS Study: How Consumers Use Digital Banks

A PYMNTS survey of 2,124 US consumers shows that while two-thirds of consumers have used FinTechs for some aspect of banking, only 9.3% call them their primary bank.

We are always looking for partnership opportunities with innovators and disruptors.

Learn more

https://www.pymnts.com/news/retail/2022/transformation-of-victorias-secret-hindered-by-slow-consumer-spending/partial/

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US Federal Reserve to lead 500 basis point global assault on inflation http://www.nordbi.org/us-federal-reserve-to-lead-500-basis-point-global-assault-on-inflation/ Sun, 18 Sep 2022 01:45:00 +0000 http://www.nordbi.org/us-federal-reserve-to-lead-500-basis-point-global-assault-on-inflation/

The US Federal Reserve and a number of its global counterparts will launch a rapid-fire attack on inflation in the coming week as their commitment to bringing consumer prices under control gets ever more resolute.

Three days of central-bank decisions are expected to deliver interest-rate hikes adding up to more than 500 basis points combined, with the potential for a bigger tally if officials opt for more aggression.

Starting the onslaught will be Sweden’s Riksbank on Tuesday, with policy makers anticipated by economists to accelerate tightening with a 75bp move.

That’s just a prelude to the main event, when US officials are expected on Wednesday to raise borrowing costs by the same amount to keep up the pressure on resurgent inflation. After another consumer-price index report topping forecasts, some investors have even bet on a mammoth 100bp hike.

Thursday will see the most widespread action. Central banks in the Philippines, Indonesia and Taiwan are all expected to raise rates. The focus then shifts to Europe, with hikes of half a point or more predicted from the Swiss National Bank, Norges Bank and the Bank of England. Further south, the South Africa Reserve Bank will continue the efforts with a 75bp move expected, and Egypt may act as well.

Three major central banks are likely to be conspicuously absent from the hiking fray, though. On Wednesday, Brazilian policy makers may pause after an unprecedented series of increases over the past 18 months.

The next day, Bank of Japan officials are likely to persist with an unchanged stance even as they worry about weakness in the yen. Then, their Turkish peers will probably continue their unorthodox approach of keeping rates low — despite inflation above 80 per cent.

Elsewhere in the coming week, US housing data, a fiscal announcement from the new UK government, and Japanese inflation data will also draw the attention of investors.

Australia

The Reserve Bank of Australia’s Jonathan Kearns will speak on Monday about rates and property prices, while RBA Deputy Governor Michele Bullock will be speaking at Bloomberg on Wednesday.

Minutes due on Tuesday from the RBA’s board meeting will be watched closely, with analysts on the lookout for more clues regarding future rate hikes.

The minutes will provide some context for the fifth consecutive rate hike that was announced by the central bank on September 6.

United States

While all eyes are focused squarely on the Fed decision and Chairman Jerome Powell’s press conference, the economic data calendar will provide clues about the impact from central-bank tightening so far this year.

Reports on August housing starts and previously owned home sales are set for release Tuesday and Wednesday, respectively. The median projection for purchases of existing properties calls for a seventh-straight monthly decline.

Weekly jobless claims and S&P Global manufacturing and services surveys for September will round out a relatively quiet data week.

Asia

The BOJ’s board will make its policy decision Thursday amid speculation that Japan is close to intervening in the currency markets as the yen tests 145 to the dollar.

Governor Haruhiko Kuroda is expected to stand firm on keeping policy unchanged, although he’s likely to end his COVID support loans program, which may open the path toward adjusting forward guidance.

Thursday will feature a central-bank marathon in Asia, with Indonesia, the Philippines and Taiwan all setting policy, and the Hong Kong Monetary Authority reacting to the Fed’s overnight move.

On the data front, Japan’s national inflation data out Tuesday is expected to keep creeping up. South Korea’s early trade data on Wednesday will continue to give insight into the pace of slowdown in the global economy. And Singapore releases inflation data on Friday.

Europe and Middle East

While the UK will take Monday off as a national holiday for Queen Elizabeth II’s funeral, monetary-policy business as usual will resume on Thursday in a decision delayed by a week to allow for mourning.

The BOE meeting will be the first opportunity for officials to respond to the altered outlook created by new Prime Minister Liz Truss’ efforts to contain the cost-of-living crisis, and the pound’s drop to the lowest since 1985. Economists predict at least a half-point rate increase as officials confront inflation that remains uncomfortably high.

The next day, new Chancellor of the Exchequer Kwasi Kwarteng will deliver a “fiscal event” where he’s expected to confirm plans to reverse a recent rise in national insurance — a payroll tax — and set out more detail about Truss’s support package.

The SNB might raise rates by 75bp at its quarterly decision on Thursday, an aggressive move to match the euro zone’s increase, even as inflation in Switzerland is much lower than in the rest of Europe. The Norwegian central bank will likely hike half an hour later too, keeping up an accelerated pace after core consumer prices clearly exceeded its forecasts.

Earlier in the week, alongside an expected rate increase by Sweden’s Riksbank, investors will focus on how much policy makers plan to accelerate future tightening plans amid growing evidence that the largest Nordic economy is headed for a recession in 2023.

In the euro region, speeches by European Central Bank Vice President Luis de Guindos and Bundesbank chief Joachim Nagel may focus investors, along with the first round of purchasing manager surveys for September, due on Friday.

Turkey on Thursday is likely to leave rates on hold after a shock cut in August, though a slowing economy and the approach of next year’s elections mean more stimulus remains on the agenda.

Africa

Data in Ghana on Tuesday will likely show economic growth decelerated to 3 per cent in the second quarter because of rising rates and a slump in the cedi that’s caused already-surging prices to soar further.

Meanwhile, on Wednesday, a report in South Africa is set to reveal that inflation eased in August after gasoline costs declined, though the rate is still expected to stay above the central bank’s 6 per cent ceiling.

Concerns about further rand weakness and a de-anchoring of price expectations will be a focus of the SARB’s Monetary Policy Committee on Thursday. Forward-rate agreements starting in one month — used to speculate on borrowing costs — are fully pricing in a 75bp increase, with odds of a bigger move of 100bp at 82 per cent.

Egypt will likely hike interest rates on the same day as inflationary pressures rise and the pound continues its gradual decline.

Latin America

The Brazilian central bank’s prized survey of economists leads off the week, with the gaze firmly on 2023 and beyond. Later on Monday, Colombia reports July economic activity, likely showing some cooling from May and June.

Next up, second-quarter output figures in Argentina may show surprising strength given the political and market turmoil buffeting the South America’s second-largest economy.

The highlight in Chile will be minutes of the central bank’s September meeting, where policy makers accelerated tightening with a bigger than expected 100bp hike to push the key rate to a record 10.75 per cent.

Look for Mexico’s mid-month consumer price readings to edge up ever so slightly from 8.77 per cent, suggesting that the peak inflation Banxico forecast for the third quarter may have arrived.

Brazil’s central bank is widely expected to hold its key rate unchanged at 13.75 per cent after a record 12 straight hikes from 2 per cent in March 2021.

Traders see a less than a 50 per cent chance of another increase in the months ahead, and it’s possible that Brazil — among the first to start tightening worldwide in March 2021 — also becomes among the first to finish.

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Fed leads global 500 basis point attack on inflation: Eco Week http://www.nordbi.org/fed-leads-global-500-basis-point-attack-on-inflation-eco-week/ Sat, 17 Sep 2022 21:04:48 +0000 http://www.nordbi.org/fed-leads-global-500-basis-point-attack-on-inflation-eco-week/

(Bloomberg) – The U.S. Federal Reserve and a number of its global counterparts will launch a swift attack on inflation over the coming week as their commitment to containing consumer prices grows ever more resolute.

Three days of central bank decisions are expected to result in interest rate hikes totaling more than 500 basis points combined, with the potential for a bigger tally if officials opt for more aggressiveness.

Sweden’s Riksbank will launch the assault on Tuesday, with policymakers expecting according to economists to accelerate the tightening with a 75 basis point move.

That’s just a prelude to the main event, when U.S. officials are expected to hike borrowing costs by the same amount on Wednesday to keep pressure on a resurgence in inflation. After another Consumer Price Index report beat forecasts, some investors even bet on a gigantic 100 basis point hike.

Thursday will see the most widespread action. Central banks in the Philippines, Indonesia and Taiwan are all expected to raise rates. The focus then shifts to Europe, with hikes of half a point or more forecast by the Swiss National Bank, Norges Bank and Bank of England. Further south, the South Africa Reserve Bank will continue its efforts with a move of 75 basis points expected, and Egypt could also act.

However, three major central banks will likely be absent from the hike. On Wednesday, Brazilian policymakers could take a breather after a series of unprecedented increases over the past 18 months.

The next day, Bank of Japan officials will likely persist with an unchanged stance even as they worry about yen weakness. Then, their Turkish counterparts will likely continue their unorthodox approach of keeping rates low, despite inflation above 80%.

What Bloomberg Economics says…

“In a busy week for monetary policy, we expect the Fed to hike 75 basis points and the Bank of England 50 basis points. Next week’s calendar also includes decisions from central banks around the world. Japan, Sweden, Turkey, Brazil, Indonesia and the Philippines, as well as an update on PBOC prime lending rates.

–Tom Orlik, Chief Economist. For a full overview, click here

Elsewhere in the coming week, US housing data, a budget announcement from the new UK government and inflation data from Japan will also attract investors’ attention.

Click here to see what happened last week and below is our summary of what is happening in the global economy.

American economy

With all eyes on the Fed’s decision and Chairman Jerome Powell’s press conference, the timing of economic data will provide clues to the impact of central bank tightening so far this year.

Reports on August housing starts and sales of previously owned homes are due out on Tuesday and Wednesday, respectively. The median projection for purchases of existing properties predicts a seventh consecutive monthly decline.

The weekly jobless claims and S&P Global manufacturing and services surveys for September will complete a relatively quiet week of data.

  • For more, read the full week of Bloomberg Economics for the US

Asia

The BOJ board will make its policy decision on Thursday amid speculation that Japan is set to intervene in currency markets as the yen tests 145 to the dollar.

Governor Haruhiko Kuroda is expected to remain firm in keeping policy unchanged, although he is likely to end his Covid support loan program, which could pave the way for an adjustment in forward guidance.

Thursday will feature a central bank marathon in Asia, with Indonesia, the Philippines and Taiwan all setting policy, and the Hong Kong Monetary Authority reacting to the Fed’s overnight move.

Below, the Reserve Bank of Australia’s Jonathan Kearns will speak on house rates and prices on Monday, while RBA Deputy Governor Michele Bullock speaks to Bloomberg on Wednesday at an exclusive event .

On the data front, Japan’s national inflation data released on Tuesday is expected to continue to rise. South Korea’s early trade data released on Wednesday will continue to provide insight into the slowing pace of the global economy. And Singapore releases inflation data on Friday.

  • For more, read the full Asia Week Ahead from Bloomberg Economics

Europe, Middle East, Africa

As the UK takes national leave on Monday for the funeral of Queen Elizabeth II, monetary policy activities will resume as usual on Thursday in a decision delayed by a week to allow for mourning.

The BOE meeting will be the first opportunity for officials to react to the changed outlook created by new Prime Minister Liz Truss’s efforts to contain the cost of living crisis, and the pound’s plunge to its lowest since 1985. Economists predict at least a half-point rate hike as officials grapple with inflation that remains uncomfortably high.

The following day, the new Chancellor of the Exchequer, Kwasi Kwarteng, will host a ‘tax event’ at which he is expected to confirm his intention to reverse a recent increase in National Insurance – a payroll tax – and provide more details of the Truss support program.

The SNB could hike rates by 0.75 percentage points in its quarterly decision on Thursday, an aggressive move to match the eurozone’s increase, even though inflation in Switzerland is well below that of the rest of the world. Europe. Norway’s central bank will likely rise half an hour later as well, maintaining an accelerated pace after core consumer prices clearly beat its forecast.

Earlier in the week, alongside a rate hike expected by Sweden’s Riksbank, investors will focus on the extent to which policymakers plan to accelerate future tightening plans amid growing evidence that the Nordic’s largest economy heading for a recession in 2023.

In the euro region, speeches by European Central Bank Vice-President Luis de Guindos and Bundesbank chief Joachim Nagel could attract investors’ attention, as well as the first round of director surveys. purchase for September, scheduled for Friday.

Looking south, data from Ghana on Tuesday is likely to show economic growth slowed to 3% in the second quarter due to rising rates and a crash in the cedi that pushed prices further up. already on the rise.

Meanwhile, on Wednesday, a report in South Africa is expected to show that inflation eased in August after petrol prices fell, although the rate is still expected to remain above the 6% cap of the central bank.

Concerns about further rand weakness and a disanchoring of price expectations will be the focus of the SARB’s monetary policy committee on Thursday. Forward rate agreements starting in a month – used to speculate on borrowing costs – fully forecast a 75 basis point increase, with a probability of a larger move of 100 basis points at 82%.

Turkey is expected to leave rates unchanged on Thursday after a sharp cut in August, although a slowing economy and the looming elections next year mean more stimulus remains on the agenda .

Egypt will likely raise interest rates on the same day as inflationary pressures build and the pound continues its gradual decline.

  • For more, read Bloomberg Economics’ full week for EMEA

Latin America

The Brazilian central bank’s prized survey of economists kicks off the week, with a firm eye on 2023 and beyond. Later Monday, Colombia reports economic activity in July, likely showing some cooling between May and June.

Next, Argentina’s second-quarter production numbers could show surprising strength given the political and trade turmoil rocking South America’s second-largest economy.

The highlight in Chile will be the minutes of the September 6 central bank meeting, where policymakers accelerated the tightening with a bigger-than-expected hike of 100 basis points to push the policy rate to a record high. 10.75%.

Expect Mexico’s mid-month consumer price readings to edge up ever so slightly from 8.77%, suggesting Banxico’s third-quarter inflation spike may have arrived.

Brazil’s central bank is expected to keep its key rate unchanged at 13.75% after a record 12 consecutive 2% hikes in March 2021. Traders see less than a 50% chance of another hike in the coming months, and it is possible that Brazil – among the first to start tightening globally in March 2021 – will also become among the first to finish.

  • For more, read the full Latin America Week Ahead from Bloomberg Economics

©2022 Bloomberg LP

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US government plans to regulate ‘buy now, pay later’ loan companies http://www.nordbi.org/us-government-plans-to-regulate-buy-now-pay-later-loan-companies/ Fri, 16 Sep 2022 20:36:24 +0000 http://www.nordbi.org/us-government-plans-to-regulate-buy-now-pay-later-loan-companies/

According to reports, the US Consumer Financial Protection Bureau (CFPB) plans to regulate “buy now, pay later” companies. Reports claim that due to the rapid growth of financial products companies such as Klarna and Affirm Holdings, CFPB believes they can harm consumers. Thus, plans are underway to regulate these companies. The CFPB does not currently oversee buy now pay later companies or their products. However, the agency claims to have guidelines or regulations consistent with those of credit card companies. The CFPB also indicates that it will put in place appropriate control and inspection mechanisms.

This decision will be a blow for the entire industry. In fact, these companies have already been pressured by rising financing costs and declining consumer spending in the United States. The decline in consumer spending is obviously due to inflation. It also marks a major offensive by CFPB manager Rohit Chopra. He has previously pledged to watch tech-focused companies as they increasingly encroach on the traditional financial sector.

“Banking and commerce in the United States are often separated. But as payment services begin to adopt the big tech approach, this segregation could be broken down,” he said.

“Buy now, pay later” businesses are on fire

With the “buy now, pay later” service, consumers can pay in installments. The popularity of these services has grown as American consumers have made extensive use of e-commerce during the pandemic. Merchants pay fees to the provider each time a consumer completes a transaction through the “buy now, pay later” service.

A CFPB survey last year found that ‘buy now, pay later’ providers Affirm Holdings, Block’s Afterpay, Klarna, PayPal and Australia’s Zip provided 180 million consumer loans in 2021 for a total of $24.2 billion. But the CFPB says in the report that it is concerned these products pose risks to consumers. The bureau points to the lack of standardized information disclosure mechanisms among the five companies. It also highlights the potential for these companies to trick consumers into overspending.

buy now pay later

Because “buy now, pay later” providers do not provide data to credit reporting agencies, lenders may not have a complete picture of borrowers’ debts. This includes consumer loans from other “buy now, pay later” companies, the CFPB said. The way buy-it-now and pay-later agencies collect consumer data also poses risks, the CFPB said. They will gradually identify data surveillance practices that these companies should avoid.

In a statement, a spokesperson for Affirm said the company’s priority is “to provide consumers with a safe, honest and responsible way to pay in installments without late or hidden fees.” “Today represents a huge step forward for consumers and integrity finance, and we are encouraged by the findings of the CFPB’s assessment,” the spokesperson said, noting that the CFPB report acknowledges that compared to traditional “buy now, pay later” credit products. significantly reduces costs for consumers.

The companies concerned claim its safe

A Klarma spokesperson said the company “will be committed to maintaining financial stability and protecting consumers through industry innovation and appropriate regulation.” A Zaip spokesperson said… “We are delighted that the CFPB has recognized the value of ‘buy now, pay later’ for consumers. This includes providing them with easy-to-use, low-cost lines of credit, especially in this tough economic environment. »

buy now pay later

The Financial Technology Association is an industry group representing the interests of a number of “buy now, pay later” companies. Group chief executive Penny Lee said in a statement that the report identified “buy now, pay later” as a competitor to high-interest credit products.

“We look forward to continuing to work with regulators such as the CFPB to achieve beneficial results for consumers,” she said. The CFPB was created after the financial crisis of 2008. Its main mission is to crack down on predatory lenders such as mortgage companies and payday lenders. Although the agency has not previously overseen “buy now, pay later” companies, Chopra said in July that it has the authority to oversee these companies as they move closer to traditional financial services firms. .

However, “buy now, pay later” companies may disagree. Shares of “buy now, pay later” companies have come under selling pressure this year. Shares of Affirm have fallen more than 75% this year, and Zip has also reached 79%. Klarna’s valuation fell 85% in July.

Apple joins buy now, pay later service

American giant “buy now, pay later”, says Max Levchin, CEO of Affirm he’s not worried about Apple’s next buy now pay later service. This is because Affirm’s services are more extensive in the longer term.

Buy now

“I don’t think there’s anything to worry about, there is plenty of room for growth on all sides,” Levchin said, saying buy-now-pay-later transactions account for less than 5% of U.S. transactions.

Affirm offers loans to customers for periods ranging from 6 weeks to 60 months, and Apple allows customers to make four payments over a 6-week period. Levchin thinks Apple services can boost the buy-now-pay-later market.

On Monday local time, Apple officially launched the Apple Pay Later service at WWDC. Unlike other similar platforms, Apple Pay Later is directly integrated with the iPhone Wallet app, which is pre-installed on the new iPhone. Swedish “buy now, pay later” service provider Klarna, a competitor of Affirm, recently announced 10% layoffs due to difficult circumstances. Levchin, who said he was still hiring, thinks Apple’s new service will challenge rivals who focus on short-term loans. Apple’s current Buy Now, Pay Later service targets short-term loans. However, the company is also developing monthly Apple Pay installments, which will directly compete with Affirm.

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The Hot Spot: Eastern Townships http://www.nordbi.org/the-hot-spot-eastern-townships/ Fri, 16 Sep 2022 15:17:17 +0000 http://www.nordbi.org/the-hot-spot-eastern-townships/

Nestled along the Canada–U.S. border, the Eastern Townships, or Les Cantons-de-l’Est, blend English and French-Canadian culture with local food, wine, art and music. The Townships have long been a destination for outdoor enthusiasts and wellness seekers—visitors can luxuriate in surreal outdoor spa experiences, thanks to the area’s lakes, rivers and mountain ranges—but hip new wine bars and distilleries have transformed the region into a contemporary all-season haven. Here, a selection of standout spots to savour while exploring the Townships’ natural beauty.

Best Farm-to-Table Feast 

21 Chemin Taylor, Austin | parcellesaustin.com

Natural wine and locally sourced ingredients reign at this farm-to-table jewel in Austin. Almost every bite comes from the restaurant’s backyard: crudités, seasonal vegetable dishes and wood-fired pizzas dotted with raw-milk cheese. The ethos extends to Parcelles’ gardens, where in the warmer months guests can enjoy an outdoor picnic among the flora.

Best Day Date

100 Chemin Lakeside, Knowlton bolt-cafe.com

Knowlton’s wine-slinging coffee shop has become a favourite among in-the-know residents. Fair-trade coffee and classic espresso beverages are served in the morning, with natural wine and craft beer poured all day long. The menu includes a breakfast burrito with a smoked jalapeño sauce; vegan banh mi; and a classic grilled cheese for only $5. A tip for travellers: linger on the terrace with lunch or a latte. It won’t take long to feel like you’re among friends.

Where to stay: Best Splurge

575 Rue Hovey, North Hatley | manoirhovey.com

Built in 1900 on the banks of Lake Massawippi, this sophisticated lakeside escape has earned its reputation as a world-class wellness retreat with unparalleled charm. The Mount Vernon–styled estate features 36 rooms, suites and cottages (from $330 a night) that combine modern amenities—like L’Occitane skincare products—with classic country appeal. There’s a Quebec-inspired restaurant on-site, where chef Alexandre Vachon grows and forages ingredients for a hyper-local seasonal menu—try the Lake Saint-Pierre caviar or the eggplant with edible flowers. Outside, guests can enjoy beautifully landscaped gardens, forest bathing in the summer and snowshoeing in the winter.

Where to stay: Best Budget

1087 Rue Main, Ayer’s Cliff | aubergeayerscliff.ca

You’ll find casual comfort food and a cuddled-up rustic atmosphere at this humble auberge. The century-old building houses just 10 cozy guest rooms, starting at $105 per night, outfitted with locally sourced antique furniture and exquisite woodwork—a nod to its history as a former stagecoach house. The pub offers fare like salmon tartare and a smoked meat sandwich on bagnat bread. Guests can enjoy craft beer on the stunning seasonal terrace, with views of a wildflower garden.

Best Locavore Lunch 

41 Rue Principale, Frelighsburg beatetbetterave.com

The frelighsburg brewpub is a wholesome yet cool community gathering place, serving rotating vegetarian and omnivorous options, most of which are harvested from the on-site vegetable garden. The dining room and seasonal patio transform from quaint café to convivial concert hall—this month, check out singer-songwriter Elliot Maginot and raucous rock trio Gros Mené.

Laiterie de Coaticook

1000 Rue Child, Coaticook laiteriedecoaticook.com

Quebec may be known for its butter and cheese, but skipping the ice cream would be a big mistake. This Coaticook parlour is one of the top ice cream makers in the province, largely due to its production sans modified milk ingredients. The facilities include a built-in milk bar where visitors can sample classic and rotating ice cream flavours—for a real Québécois experience, get the maple taffy. 

Best Spa 

883 Route Missisquoi, Bolton-Est | spabolton.com

The scenic splendour of the Eastern Townships is synonymous with high-end wellness. Set at the base of the Missisquoi River falls, this Nordic-inspired spa leans into the natural abundance surrounding the property with outdoor polar baths and riverside massages in heated yurts, scored by the soothing sounds of the river. Treatments include facials, body scrubs and pedicures. 

“​​On the shores of Lac Memphremagog is Abbaye de Saint-Benoît-du-Lac, a spectacular monastery where black-robed monks—whose vocation is award-winning cheese-making—sing services in Gregorian chants. There is, in the basement, a wonderful shop where religious objects sit cheek-by-jowl with cheeses and chocolates and home baking.” – Louise Penny, author  


This article appears in print in the October 2022 issue of Maclean’s magazine. Buy the issue for $8.99 or better yet, subscribe to the monthly print magazine for just $29.99.

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EC competition concerns prompt Pivo to withdraw from merger with Vipps and MobilePay http://www.nordbi.org/ec-competition-concerns-prompt-pivo-to-withdraw-from-merger-with-vipps-and-mobilepay/ Fri, 16 Sep 2022 14:29:30 +0000 http://www.nordbi.org/ec-competition-concerns-prompt-pivo-to-withdraw-from-merger-with-vipps-and-mobilepay/ Finnish mobile payment app Pivo has been pulled from a three-way merger with MobilePay and Vipps after the European Commission raised concerns about the deal.

Last year, MobilePay, Pivo and Vipps – all bank-owned – announced plans to join forces to create a single payment app with a combined user base of 11 million consumers in Finland, Denmark and Norway.

However, with Danske Bank-owned MobilePay and OP Financial Group-owned Pivo both having large customer bases in Finland, the EC’s Competition Directorate-General sounded the alarm.

This forced Danske Bank and the consortium of lenders behind Vipps to go ahead without OP Financial and Pivo. The revised plan still needs to be approved by the EC.

Christian Bornfeld, Head of Personal Customers, Danske Bank, says: “MobilePay in Denmark and Finland will still merge with Vipps. The parties’ ambition to create a cross-border mobile payment wallet has not changed.

“Danske Bank and the Norwegian banks behind Vipps would have preferred the merger, as planned, to include OP Financial Group and Pivo, but we respect the Commission’s concerns and now hope for early approval.”

The change means that the new company, called Vipps MobilePay, will now be 27.8% owned by Danske and 72.2% by the Norwegian consortium.

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EU General Court dismisses appeals in landmark state aid decisions – Trial, appeals and compensation http://www.nordbi.org/eu-general-court-dismisses-appeals-in-landmark-state-aid-decisions-trial-appeals-and-compensation/ Fri, 16 Sep 2022 09:36:03 +0000 http://www.nordbi.org/eu-general-court-dismisses-appeals-in-landmark-state-aid-decisions-trial-appeals-and-compensation/

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The EU General Court has completely rejected appeals by the City of Helsinki and Helsingin Bussiliikenne in landmark state aid decisions.

We represent the largest Nordic bus company Nobina in a state aid case concerning loans granted by the City of Helsinki to its wholly owned bus company Helsingin Bussiliikenne Oy (HelB). We supported Nobina by preparing a complaint to the European Commission in 2011, then we helped Nobina throughout the Commission’s multi-year investigation which culminated in a decision in 2019 that state aid is illegal and must be repaid. The Commission ordered HelB and the new company which had purchased HelB’s assets to repay illegal state aid of around EUR 54 million plus interest, as the aid had distorted the market for buses in the Helsinki region. After Helsinki and HelB appealed the Commission’s decision, Dittmar & Indrenius represented Nobina before the General Court (cases T-597/19 and T-603/19) supporting the Commission.

On September 14, 2022, the EU General Court dismissed Helsinki’s and HelB’s appeals completely and ordered Helsinki and HelB to pay the Commission’s and Nobina’s legal costs.

The consequence of these judgments is that municipalities should be increasingly aware of the limits of how they can support their own businesses. In addition, those buying a business or its assets should be aware that they may be jointly and severally liable to repay illegal state aid with the business that received it.

The cases are linked below:

T-597/19

T-603/19

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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