A super-thin iPhone 17 “Air” (as everyone has been calling it) is coming this fall whether we want it or not
Influencers will fawn over its slim profile; I will definitely try to cut cake with it
But phones barely thicker than a USB-C port will likely nix the creature comforts that we’re all used to on our normal-sized slabs
“The percentage of users who can go a single day without recharging the thin phone will be between 60% and 70%,” the report states
a thinner phone requires a slimmer battery that can fit inside of the iPhone 17 Air’s metal chassis
There are other ways Apple could compensate for a smaller battery
but that may not be the case for this first-gen iPhone Air
Apple is reportedly planning to sell a battery case that users can attach to extend the time between charges
The cynic will say this is classic Apple creating a problem to sell an accessory as a solution
idealists will defend the thinness and tell you to just buy a regular iPhone or Pro model if having the longest battery life is at the top of your checklist
I’m sure there are Redditors ready to cry conspiracy
Reduced battery life on the iPhone 17 Air will lead headlines
We already know this phone will have a single rear camera—one that juts out quite a bit
The Information also reports that the thin iPhone will have a single speaker instead of the dual speakers in the other iPhone 17s
None of this is news that will go down well with consumers come this fall, but getting a battery pack is the reality that you’ll have to accept if you want Apple’s thinnest iPhone ever. YouTuber Sam Kohl shared a video showcasing high-quality dummy models for the new iPhone 17 and 17 Pros
so the shock doesn’t stun too hard when Apple throws the price slide up on screen at Apple Park
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Wary of the potential for the escalating trade war to materially destabilize the macro environment
UBS has revised its assessment of possible downside scenarios
In the first quarter earnings report of UBS
the Swiss banking giant revised its list of expected credit loss (ECL) models
economic scenarios that could play out as well as their weightings
This was due to prevailing economic and political conditions
most notably from the rapid escalation of the trade war under US President Donald Trump
there was a high degree of geopolitical and macroeconomic uncertainty
including uncertainty relating to tariffs that could be introduced by the US government after that date and the economic consequences thereof,» the bank said
«The actual announcing of the tariffs in April 2025 was subsequent to the reporting date
UBS has assessed the situation based on the uncertainties that existed on the reporting date and has exercised judgment.»
UBS has adjusted its forecasts with the replacement of the «stagflationary geopolitical crisis scenario» with a «global crisis scenario» (15 percent chance) which targets risks such as sovereign defaults
low interest rates and significant emerging market stress
The «mild debt crisis scenario» has also been replaced with a «mild stagflation crisis scenario» (30 percent chance) with assumptions of rising rates alongside declines in GDP and equities
It applies a 50 percent chance to its baseline scenario of relatively stable economic conditions
«UBS is closely monitoring the current market situation
potentially revisiting the narratives and weightings in the second quarter of 2025,» the bank added
finews.com publishes on its own Web-TV-Channel interviews with well-known figures of Swiss finance.
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Risk of further escalation in trade tensions between the US and China poses increased downside risks to the commodities complex
Oil prices witnessed something of a relief rally this morning
Yet risks are still skewed to the downside as President Trump threatens an additional 50% tariff on Chinese goods if it doesn’t lift its 34% retaliatory tariff today
It's unlikely that China will reverse the policy
we’re likely to see further escalation
which will only exacerbate growth concerns and worries over oil demand
As we mentioned following the move by OPEC+ to increase supply
we expect a strengthening in the Brent-Dubai spread
A combination of stronger OPEC+ supply and tariff impacts (with a number of Asian countries receiving higher-than-feared reciprocal tariffs)
should cause the spread to strengthen further
The broader move lower we’ve seen in crude oil since 2 April suggests the market is pricing in bigger odds of a recession
The scale of the sell-off will worry OPEC+
which last week surprised the market with a larger-than-expected supply hike for May
We could see OPEC+ pause or even reverse supply increases
The Saudis need around US$90/bbl to balance their budget
While their supply increase last week suggests they’re not aiming for this level
the Saudis probably don’t want to see an even wider gap between their fiscal breakeven level and current prices
Slowing in US drilling activity could offer some soft support for the market
We expect current WTI prices to lead to a pullback in drilling
This will eventually feed through to slower supply growth and potentially even a decline in US oil output
High decline rates for US shale mean consistent drilling is needed to keep US output stable
According to the latest Dallas Federal Reserve Energy survey
producers need an average of $65/bbl to profitably drill a new well
European natural gas prices haven’t escaped the broader risk-off move
Title Transfer Facility (TTF) is down almost 13% so far this month
trading at its lowest level since September
While investment funds reduced their net long in TTF by a sizeable amount between February and March
there’s still room for further fund liquidation
Yet while funds have been exiting the market
faces the tough task of hitting its 90% storage target ahead of next winter
tariffs provide some downside risk not just to European gas demand
This risk is fairly difficult to quantify at the moment
but sometimes investors sell it along with other asset classes to cover losses elsewhere
We think gold’s selloff will be short-lived as trade and tariff uncertainty continue to bolster its safe-haven appeal
China’s central bank added gold to its reserves for a fifth straight month in March
Gold reached a new record high above $3,100/oz last month
Gold held by the People’s Bank of China rose by 0.09 million troy ounces last month
We believe central banks will continue to buy gold as geopolitical tensions and economic uncertainty push them to increase allocations toward safe-haven assets
This should provide a further tailwind to gold prices looking ahead
The USDA’s first crop progress report for the season shows US corn plantings started at the usual pace of around 2% for the week ending 6 April
This was in line with the five-year average of 2%
winter wheat crop conditions deteriorated due to less rain in the major producing regions
The agency rated around 48% of the winter wheat crop in good-to-excellent condition
Weather conditions in the major cocoa-producing countries in West Africa remain uncertain during the growing season
Recent reports suggest that the weather has become favourable in some regions -- including Ivory Coast
and Cameroon -- with a combination of rains and adequate sunshine
prolonged dryness in Nigeria delayed the mid-crop harvest until mid-July
with flowering expected in the next 10 days amid moderate weather
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architecture
Belmont Abbey
Benedictines
Buckfast
CATHOLIC NEWS
Downside
The Downside Abbey monks will soon be on the move again
and this time they are hoping it will be to a permanent home
The Benedictine community of St Gregory the Great has voted to leave their temporary residence at Buckfast Abbey in Devon
and settle at Belmont Abbey near Hereford this summer
The eight monks took the momentous decision to leave Downside Abbey
exactly three years ago for a period of discernment at a retreat house at Buckfast
They were all that was left of the Benedictines who were the first of their congregation to re-settle in England after the Reformation
At Downside they established a grand monastery with a Grade I-listed abbey church designated a minor basilica by Pius XI
An announcement on the Downside Abbey website dated 12 March
said they will settle with the community of St Michael and All Angels at Belmont
The former Downside monks will be a separate and independent entity at Belmont for two years under the provisions of Canon Law
Abbot Nicholas Wetz said the aim is that they will ultimately merge: “Our shared hope is that we will be able to support and strengthen each other in faithfulness to our Benedictine vocation and that eventually we will form a single
We will announce the exact date of our move to Belmont when we have settled the practicalities.”
a former Belmont monk who was elected thirteenth abbot of Downside in 2020
expressed his appreciation to the Buckfast community for hosting them during what he describes as a “vital period”
“Here [at Buckfast] we have enjoyed the opportunity of leading a simpler and more intense community life
less overwhelmed by the buildings and grounds at Downside that were too big for our current needs,” he said
“Our discernment has encouraged us to continue the mission of our monastic forebears
Pope St Gregory the Great first entrusted to Benedictine monks at the end of the sixth century under the leadership of St Augustine of Canterbury
“We now have the opportunity of beginning a joint project with the Community of Belmont Abbey
Together we can explore fresh ways of providing the pastoral care and formation that have always marked the English Benedictine Congregation
we ask your prayers that our united communities will attract new Benedictine vocations to serve the needs of the Church today and in the years ahead.”
Abbot Nicholas returned to celebrate Mass at Downside Abbey Church on the feast of St Gregory the Great on 12 March
He and his confreres remain responsible for the abbey’s heritage
The buildings are of national importance and include the largest monastic archive and library in the UK
has created a new sixth form centre in the former monastery refectory
which in its heyday housed a 50-strong community
The abbey church is used by the school and the local parish
Heritage experts have expressed concerns about the viability of the monks caring for the Downside treasures at arms’ length
reported that approximately 3,842 people visited the basilica and the archives and library in 2024
Mass attendance at the abbey church was around 15,600 for the liturgical year 2023-2024
Asked about plans for the former monastery and the funding of repairs at listed buildings
Johnson said: “Downside Abbey General Trust [DAGT] are exploring paths towards a viable future for the monastery to give this important historic building a new and sustainable purpose
“We work with our historic buildings conservation advisers and statutory bodies in maintaining our historic buildings
do and will continue to pay for the maintenance and repair of the basilica.”
Christopher Butler – no typical monk
New monk makes solemn profession at Douai Abbey
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and risk-off sentiment alone will inflict a demand shock on industrial and logistics operators
The ‘liberation day’ tariffs have been postponed
but the existing tariffs and those likely forthcoming present significant downside risks for most Asian industrial real estate markets
which will heavily impact South Korea and to a lesser extent Japan
ASEAN markets are also likely to face higher future tariffs
but supply chain shifts in those markets will remain sticky
China of course faces a more severe downside
With overcapacity evident in industrial production
alongside significant oversupply already in industrial real estate markets
operating fundamentals in the industrial real estate sector are likely to deteriorate as occupier demand stagnates
While benchmark rates are likely to decline
We anticipate little-to-no benefit from falling benchmark rates as investors looking at tariff-exposed sectors
will remain cautious and demand higher returns
[email protected]
© Oxford Economics 2025 all rights reserved
They say the first step to recovery is admitting you have a problem. And to the Volkswagen Group's credit, it's been admitting it has a problem for some time now
It's never been especially strong in North America compared to the bigger players and it's getting absolutely creamed in China
All of that is reflected in today's first-quarter 2025 financial results
wherein the conglomerate reported a 37% drop in operating profit from the same period last year
But it now says it has a plan to fix things
Yet while the VW Group's EV sales are growing
they're kind of dragging profits down with them.
our morning roundup of auto industry and technology news
Also on deck today: Toyota makes a vertical integration play
and President Donald Trump's new tariff plan may not offer the relief the sector wanted
the Volkswagen Group experienced a mixed start to the fiscal year," said Arno Antlitz
Aside from the aforementioned 37% drop in profits
North American sales were down 2% and China sales were down 6%. But at least things are growing again in Europe
and South America—the latter saw sales up a healthy 17%
Also on the positive side, the VW Group is steadily increasing its electric vehicle sales across the board, and as we have reported before, it's emerging as a surprising winner as European buyers turn away from Tesla.
Here's the issue: EVs are still largely unprofitable for most automakers besides Tesla
they're bringing overall profits and profit margins down
"An operating margin of around 4% clearly shows that there is still a considerable amount of work ahead of us," Antlitz said
(Margins of 6% or higher are usually considered good in the industry
even if that's relatively low compared to other industries.)
But this also shows the challenge for the so-called traditional auto industry: it has to make EVs to prepare for the future
and fund them with the sales of more profitable gas cars
and gauge the right mix of each for different markets as customers move on from gas at different rates
At least VW's trajectory seems to be improving. Every fifth car sold in Western Europe is now fully electric
Meanwhile, it's leaning on partners like SAIC in China for new all-electric models designed to appeal to those customers
and they certainly would fit in with the various Xpengs
Akio Toyoda presiding over the JAMA September 9 press conference 2
I went to a BYD press conference where executives explained how they created the system for five-minute EV fast charging
or Megawatt charging (so named because it delivers 1,000 kW of power.) BYD made all of the stuff to do that in-house: the cooling systems
That's a remarkable achievement that goes against the grain for most of the auto industry
The majority of them rely heavily on outside suppliers to make parts and components
But Tesla and the Chinese automakers are vastly more vertically integrated
allowing them to move more quickly on all fronts
And that's what I think Toyota Chairman Akio Toyoda is after by seeking to buy out a key parts supplier, Toyota Industries
This was reported last week but it's been on my mind since China
and I think it's worth addressing here.
currently holds a 25% stake in machine and parts-maker Toyota Industries; confusing
but both were started by the same family and the carmaker actually spun out of the latter
My theory is that it would give Toyota much more of an edge on China-like vertical integration
allowing it to make key components for EVs and other future-facing technologies more quickly and potentially at lower prices
and many were certified incorrectly last year
leading to a kind of mini-Dieselgate scandal in Japan.
Here's Automotive News:
A possible move to reorganize Toyota Industries comes against a backdrop of Toyota Group companies loosening their cross-shareholdings
to free capital for investment in new technologies
have sold off shares in group affiliates in recent times
sold its stakes in both Aisin and in Toyota Industries
Toyota Motor owns about 24 percent of Toyota Industries
while Toyota Industries owns 7.5 percent of Toyota Motor
which has former Toyota Motor director and R&D chief Shigeki Terashi as its chairman
said it is looking at ways to improve its “enterprise value” and “capital efficiency.”
It may not be the sexiest news you'll read all day
but if it helps Toyota move as fast as BYD can
“It’s akin to having a car accident and saying
but it’s still $20,000 worth of damage,’ ” said Dan Ives
managing director of autos at Wedbush Securities
The executive orders signed April 29 put in place a complicated system of breaks on certain imports of auto parts and components for the next two years
but it gives Detroit's automakers some relief from what Trump earlier had ordered
which were 25% tariffs on all imported autos which began in April and another 25% on all auto parts set to begin by May 3
China races ahead with EVs and other advanced technologies
while the car companies that operate in and serve our market don't even know what to build
where to build them and where to price them
Are we seeing the beginnings of a comeback for the VW Group
or are its current problems too insurmountable
Where do you see things going next for the conglomerate
Contact the author: patrick.george@insideevs.com
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Jota in crutches the only downside for Champions Celtic | OneFootballThe Celtic Star
Celtic winger Jota was seen in crutches during the post-match celebrations at Tanndice stadium today…Jota of Celtic celebrates scoring the opening goal with team mate Reo Hatate during the SPL | Premier League match between Dundee United FC and Celtic FC at Tannadice Park on April 26
The Hoops ran all over the top of Jim Goodwin’s Dundee United this afternoon and put five goals past the home side to clinch the Scottish Premiership in spectacular fashion for the supporters
making up for the initial failure to win the league at Paradise in front of a packed house
Two braces from Adam Idah and Nicolas Kühn, after the opening own goal from Ryan Strain saw the Bhoys in cruise control against the Arabs and ensured light work was made of winning Four-in-a-row
The team have been back to their slick and elusive best in recent weeks
as our football did the talking with some really nice exchanges of play between the side
Jota and Reo Hatate celebrate. Dundee United v Celtic, 26 April 2025. Photo Vagelis Georgariou (The Celtic Star)
There was some cause for concern though today as Felipe Jota was spotted in crutches after the match at Tanndice
Jota suffered what looked like a very nasty impact injury on his knee
when his leg went straight into the ground with all his weight behind it
The Portuguese winger looked in considerable discomfort and was removed from the action straight away by manager Brendan Rodgers
Jota celebrates. Dundee United v Celtic, 26 April 2025. Photo Vagelis Georgariou (The Celtic Star)
Sky Sports honed in on the wideman when the final whistle went during the post-match celebrations amongst all the Celtic players and backroom staff
Appearing in a set of crutches and a knee brace
it looked worrying as he may now miss Celtic’s remaining league and Scottish Cup fixtures
which include a final Glasgow Derby at Ibrox and cup final against Aberdeen at Hampden Park
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Jota in crutches the only downside for Champions Celtic
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Expats must learn that smaller rural Italian communities run on gossip
Silvia Marchetti
or even set up a gazebo in your garden without the green light from the local authorities
And just because you happen to be ignorant of local building regulations is no excuse
Norah is a digital nomad from London with a cottage in Rome’s countryside
She recently had to dismantle a gazebo she had set up in the garden due to lack of permits
“I had no idea that there were landscape restrictions,” she said
Her house lies close to a protected natural reserve where archaeological ruins were found decades ago
Annoyed by the daily noise of work in her garden
they reported her to the local police office
especially as her neighbours had shopped her to the police
albeit more expensive problem when he decided one spring day to build a 14-metre-long swimming pool
He has joint pain and thought that a daily swim might help
had them dig a 4m-deep curaçao blue pool with stone borders
and in less than two weeks he was already doing his daily lengths
It was lovely – until a police agent came knocking on his door
“The agent told me his office had received an anonymous call from a resident living near my house who had complained about the loud noise in my front yard,” he told me
Dan said he had no idea that Italian law could be so cruel: the agent ordered him immediately to remove the pool
and file the paperwork needed to build a “legal” one
his garden looked as if it had been bombed: the huge ugly pit had been filled with the worst kind of soil
chicken bones and old fragments of floor tiles that stuck out of the ground
“The company I hired to tear the pool down probably took the soil from a graveyard or an abandoned patch of land
This whole adventure cost Dan some €30,000 to build the pool
if he decides to file the necessary application to the local authorities to get authorisation
it will cost him another €30,000 to have it all rebuilt
and perhaps even selling the house and looking for another property closer to the beach
It struck me that what really upset these expats
more than seeing an expensive project being smashed up before their eyes
And that is partly the result of a cultural clash
rural Italian communities everyone looks out for each other
and blow the whistle on naive foreigners who think living the Italian dream is an easy ride
but it’s an aspect of Italian society and mentality that everyone needs to come to terms with – including all the expats
Silvia Marchetti is a freelance writer living in Rome
Evo Morales has been lining up a return to power and now he's summoned his supporters
Councillors can no longer escape the mess and workers seem intent on drawing this out
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Jay Powell’s hawkish comments and a stronger case for an ECB October cut have prompted a rewidening of EUR:USD short-term rate spreads
With rising Middle East tensions and French political instability
EUR/USD is starting to look expensive above 1.110
we’ll be closely monitoring the US job openings data
It’s been a hectic start to the week in central bank news and geopolitics: Fed Chair Jerome Powell explicitly pushed back against a 50bp rate cut by year-end
and Israel started a ground offensive in Lebanon
the dollar would have rallied on such a combination of events
but sensitivity to Fedspeak and Middle East turmoil has been reduced
the 50bp reduction in September means that market pricing is more structurally dovish-leaning
perhaps also on the premises that the Fed wouldn’t want to underdeliver on easing should a 50bp move be priced in by the FOMC date
Powell said the base case is two 25bp moves by year-end
which is unusually specific guidance that signals his discontent with market dovish pricing
the Fed Funds Future curve is factoring in 70bp of cuts by December
effectively betting that soft data will force a September-like Fed surprise in one of the next two meetings
That signals the balance of risks in the very near term is probably skewed to the upside for the dollar
The geopolitics-FX link is also rather weak at the moment
Israel’s ground raids in Lebanese territory were a highly-anticipated risk by US authorities
The lack of substantial repercussions on commodities
means that FX markets are also not responding to the latest developments
There are upside risks for the dollar here too
we’ll see the August JOLTS job openings print today
which is expected at an unchanged 7673k after a surprise drop last month
Markets may be more sensitive to those job opening numbers than the ISM Manufacturing index
which is also expected to have stabilised around 47.5
Even ECB President Christine Lagarde struck a more dovish tone yesterday as she pointed to greater confidence in disinflation
which will taken “into account in our next monetary policy meeting in October”
We’ll be waiting for the eurozone-wide CPI numbers later today
where headline inflation is expected to slow below the 2% target (to 1.8%) and the core measure from 2.8% to 2.7%
It’s looking increasingly likely that holding rates in October could mean cutting by 50bp in December
which explains market pricing for -52bp by year-end
The large moves in the EUR:USD short-term rate differentials are pointing to a weaker EUR/USD now. Incidentally, we could see some fresh political risk premium being built into the euro as new French Prime Minister Michel Barnier is facing an even worse than expected deficit situation
and a likely political battle ahead to push forward any budget consolidation measures
Our rates team does not expect any respite in French bond spreads
Barnier delivers a key Parliamentary speech at 3PM CET today: expect some debt market volatility spilling into the euro
we think EUR/USD can trade back below 1.110 in the next couple of days
and test 1.100 if US unemployment doesn’t tick higher on Friday
The yen would be the other go-to currency in a geopolitical risk escalation
but Japanese markets are currently trading mostly on domestic news
The Nikkei has rebounded after yesterday’s selloff and short-term JPY swap rates are inching lower after the Bank of Japan (BoJ) summary of opinions was slightly hawkish
with one member explicitly signalling downside risks
This is partly offsetting bets that the new Prime Minister Shigeru Ishiba will favour fighting inflation
our view on the BoJ remains more hawkish than the market’s pricing for 13bp of tightening over the next three meetings
so even if the tactical picture is turning more skewed to the upside for USD/JPY – not least because of risks of correction higher in USD rates – we are not ready to call for a sustained
Today we will have PMIs in the region and our economists expect a slight decline across the board following the weaker data from Germany released earlier
we will see the release of the final GDP numbers for the second quarter
which will likely confirm the previous numbers
and the state budget performance for September
which will likely not yet show flood-related spending
The FX market in the region was hit hard yesterday and came under pressure again
The lower EUR/USD is understandably not helping
and the escalation in the Middle East has increased risk aversion
we don't see much reason on the local side
rates are rather supportive of CEE currencies
Although it is probably too early to fade the move, we believe the market in the coming days may get good entry points for CEE FX again. EUR/PLN in particular is getting interesting ahead of Thursday's National Bank of Poland press conference. Yesterday's inflation confirmed a rise including core and given the dovish shift we saw last month from the governor
we may see a rather hawkish repricing supporting stronger FX this week
Global Head of Markets and Regional Head of Research for UK & CEE
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Jota in crutches the only downside for Champions Celtic | OneFootballThe Celtic Star
Celtic winger Jota was seen in crutches during the post-match celebrations at Tanndice stadium today…Jota of Celtic celebrates scoring the opening goal with team mate Reo Hatate during the SPL | Premier League match between Dundee United FC and Celtic FC at Tannadice Park on April 26
The Hoops ran all over the top of Jim Goodwin’s Dundee United this afternoon and put five goals past the home side to clinch the Scottish Premiership in spectacular fashion for the supporters
Two braces from Adam Idah and Nicolas Kühn, after the opening own goal from Ryan Strain saw the Bhoys in cruise control against the Arabs and ensured light work was made of winning Four-in-a-row
Photo Vagelis Georgariou (The Celtic Star)
Sky Sports honed in on the wideman when the final whistle went during the post-match celebrations amongst all the Celtic players and backroom staff
Help raise funds for Celtic Youth Academy by playing the Celtic Pools Weekly Lottery and you could win up to £25,000
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and he or she is likely to have a strong opinion about something known as “structured notes.” These complex products are sold as the “have your cake and eat it” investments of the wealth management world
Their specialty is flexibility –some are geared toward growth and others toward income
Returns are generally capped and in all cases the goal is to limit downside risk
They are manufactured by big banks like JPMorgan using derivatives
and are often sold as “stock market-linked” with “sleep well at night” protection
typically ranging from six months to five years
provide principal protection and sometimes offer annual yields of 10% or more
structured notes were mostly the domain of hedge funds and other sophisticated investors or ultra-wealthy clients
the notes are now being offered by scores of brokers and sold in bite-sized $1000 increments
The current market volatility and uncertainty has caused them to surge in popularity
structured notes market reached a record high of nearly $150 billion
“I absolutely love structured notes,” says Anh Tran
an independent advisor at $350 million (assets) SageMint Wealth in Irvine
Structured notes make up about 30% of the allocation in most of Tran’s client portfolios
“I’ve never had so many calls from advisors reaching out asking if we can talk to them about how we run our portfolios,” says Tran
“Clients are using structured notes not because they’re ‘hot,’ but because they allow you to take more control of the outcome,” insists Michaelangelo Dooley
Structured Note Strategies Portfolio Manager at $30 billion investment advisory NewEdge
Dooley is referring to the fact that these securities can be tailor made to meet the demand created by specific market environments
stock market notes offering income of 10-12% were popular
“Each [note] is entirely different with the risk that it takes on
Even within the same category—like contingent yield notes—two products might have similar structures but vastly different outcomes based on the underlying assets.” One could be tied to the S&P 500
Take Bank of Montreal’s freshly issued Senior Medium Term Notes
which are one of the first products to roll off of a $78 billion shelf registration
bear no interest and are designed to track the performance of the tech-heavy Nasdaq 100 Index
The maximum gain noteholders are entitled to is 22.8%
the Nasdaq100 is up 35% from its level on April 25
investors will only be entitled to $1,228.00 for each $1000 par amount note
However if tech stocks continue to fall and the Nasdaq 100 is down 35%
the BMO structured note holders get their original $1,000 returned
Another type of structured note is known as a “buffered” note
which typically track an index like the S&P 500
the first 30% is protected and the investor takes only the final 5% loss
Contingent income notes offer periodic income—say
9% annually—as long as the underlying asset or index doesn’t fall below a preset barrier
They are often “autocallable,” meaning they redeem early if the reference asset hits a high price target price
this feature can allow for quick realization of gains and capital return
But when markets stay choppy—like they have been in 2025—the notes may linger to maturity
still paying income but testing investor patience
If the index stays above a set barrier—commonly 60-75% of its initial value—the investor gets their principal back
and the note’s return moves in tandem with the underlying asset
meaning that the client assumes a 1:1 loss
SVP of Product Strategy at alternative investments marketplace iCapital
the current volatility has made these autocallable contingent income notes especially attractive
these products offer yields in the 7–10% range with 30–45% downside protection,” he says
“Advisors are using them to harvest volatility and generate income without taking full equity risk.” Following market events like Trump’s tariff announcement
Kuefler noted quote requests surged by 140% week-over-week—clear evidence of rising advisor interest
These novel securities are not without their costs
Bank of Montreal charges advisory firms a 2.5% commission for creating the notes
these notes also have limited liquidity and even under the best case scenario
an investor would likely do just as well by investing in a high yield corporate bond fund
which is inherently less risky and less complex
about the same annual return you would achieve under the best case scenario with the BMO’s new Nasdaq100-Linked structured notes
than to invest in one of these options-fueled funds
“These ‘buffer funds’ are a marketing success
and a failure for investors lured in by the overpromise of magical equity returns without equity risk and then overcharged for the pleasure,” writes Daniel Villalon
Global co-head of portfolio solutions at AQR
Like their broker-sold cousins “buffer ETFs” have soared in popularity recently
assets have ballooned to $58 billion up from their inception in 2018
One of the most popular is Defined Wealth Shield ETF
The $1.4 billion (assets) fund whose symbol BALT
stands for “bond alternative” and like other buffer ETFs
is designed to allow for some market gain participation but limit losses
BALT allows investors to participate in S&P 500 gains capped at 2.47% each quarter
but protects them from any losses up to 20% on the downside during the same quarter
During 2024’s roaring 23% run in the S&P 500
BALT owners would have earned just under 10%
with the S&P down 9% BALT is off only 1%
Critics of structured investment vehicles argue that the complexity masks inefficiencies and cost
They also warn that their perceived safety evaporates during black swan type economic events—like a global recession
Structured notes are unsecured obligations and are thus
only as sound as the financial institutions issuing them
investors lost nearly all of their principal in the more than $18 billion in structured notes issued by Lehman Brothers
“Banks and advisors make a ton of money on them,” says one Morgan Stanley advisor who asked to remain anonymous
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NatWest Group PLC (LSE:NWG) is a ‘buy’ that offers investors ‘good’ momentum and only ‘modest’ downside risk
pitch a 510p price target that suggests around 15% upside to the current market price of 444.5p
solid balance sheet growth (core loans and deposits were up 3.5% and 2.9% year-over-year respectively and with good 4Q quarter-over-quarter momentum)
good cost control and shrinking share count driving attractive EPS growth,” analyst Jason Napier writes
UBS estimates some 9.2% growth on an earnings per share basis for the 2025/6 financial year
Reacting to NatWest’s recent results
UBS noted that pre-tax profit was above analyst consensus
as is our 510p price target,” Napier added
NatWest shares are up around 10% for 2025 to date
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Fund managers are predicting significant increases in inflows and product launches in 2025
as they look to capitalise upon growing investor appetite for alternative assets and ETFs
growing regulatory complexity and client pressure for higher standards are driving increased outsourcing of non-core functions
according to new research from Carne Group
Its annual report into industry ambitions and expectations for the year ahead, Change 2025, surveyed 251 international C-suite executives in fund management and 200 institutional investors
together responsible for more than $4.6 trillion in assets under management (AUM).
When questioned on their outlook for fund flows this year
with the vast majority (81%) expecting to see an increase in the flow of new capital into their funds and segregated accounts during 2025.
84% expect the number of new funds launching in their sector this year to be higher than in 2024
compared to just 14% of those surveyed last year
as investors seek protection from continued volatility
Drilling down into the asset classes set to benefit the most from inflows
fund managers are firm in their belief that demand for private markets will continue to boom in 2025
with hedge funds and private equity being the alternative asset classes expected to see the biggest increases in fundraising this year.
84% of fund managers expect the level of fundraising by hedge funds to increase compared to last year
while 72% expect an increase in flows to private equity and 31% a dramatic increase
The corresponding figures for real estate are 71% and 33%
while for private debt they are 59% and 24%
downside protection and hedging opportunities
looks set to be supported by market conditions
with more than four in five institutional investors (83%) believing that the level of volatility in stock markets will rise this year
up from 67% of those surveyed last year.
This predicted increase in volatility comes hand-in-hand with a rise in risk appetite
Almost seven out of ten institutional investors (69%) predict that their organisation’s appetite for risk will be higher this year
with 7% believing levels will be much higher
Continued rise of ETFs also contributes to sector growth
Exchange-traded products remain front of mind both for institutional investors and for asset managers looking to service client demand in 2025
89% of the equity and fixed income fund managers Carne surveyed currently offer either ETFs or ETPs – of those who don’t
89% expect to offer them within the next three to four years
three-quarters of the managers surveyed say ETFs already account for between 10% and 15% of their total assets
Managers expect this proportion to grow over the next five years
which is also in accordance with investor expectations: 82% of institutional investors surveyed agree that investors are moving ETFs from short-term asset allocation strategies to core portfolio holdings
Almost all fund managers expect regulation to become more complex
Regulation continues to play a critical role in the evolution of the fund management sector
98% of fund managers and 99% of institutional investors questioned agree that regulatory complexity will increase over the next two years.
managers are increasingly recognising that support from specialist third parties can allow firms of all sizes to ensure regulatory compliance while also meeting the high standards expected by investors across multiple asset classes and jurisdictions
88% of fund managers questioned about their middle and back offices expect to increase their use of third-party service providers over the next 12 months
with 49% anticipating a dramatic increase.
Managers say the biggest incentive for outsourcing to external providers is a request for higher standards
better reporting and more transparency from clients
This is followed by the growing burden of regulation
difficulty in recruiting and retaining appropriate staff
Institutional investors also plan to rely more heavily on external providers this year
More than two-thirds (67%) will increase outsourcing in 2025
When asked to give the main reasons for increasing outsourcing
institutional investors showed most concern about the ability to meet client requests for higher reporting standards
followed by the growing burden of regulation
said: “With fund managers anticipating a year of increased inflows and product launches
2025 offers grounds for optimism to a sector that has been contending with significant challenges
from market volatility and continued focus on fees to industry-wide consolidation
For managers looking to embrace this optimism
it is clear that investor demand for alternative asset classes and the growing popularity of ETFs are two of the most critical opportunities for growth over the coming years.
managers will have several challenges to navigate in order fully to seize these opportunities
with our research indicating that increasing regulatory complexity and client pressure for higher standards will be front of mind in the year ahead
competition within private markets is becoming fierce
with managers vying to seize the best investment opportunities
deploy funds effectively at attractive margins
and penetrate new client segments for additional capital inflows
managers are increasingly recognising that outsourcing non-core functions to third-party specialists can offer transformative improvements in operational resilience and efficiency.”
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Trump’s newest round of tariffs hit financial markets and added to downside risks to the economy
while the Fed may find the outlook trickier
writes Nordea Chief Analyst Jan von Gerich
President Trump this week delivered his much-vaunted decision on reciprocal tariffs
The US will start to apply a baseline 10% tariff on imports from all countries starting on 5 April
while an individual reciprocal tariff will be added on a country-by-country basis
which will kick in on 9 April. The EU will face a 20% tariff and
which will come on top of the 20% Trump already imposed earlier this year
Mexico and Canada were exempted from the reciprocal tariff for now
which already had a levy of 25% imposed on them
would not be hit by an extra reciprocal tariff
if a trading partner retaliated with counter tariffs or if the situation in the US manufacturing sector worsened
The economic consequences of the new tariffs are uncertain and depend on what else will be in store: how long the tariffs will be in place
whether there will be further modifications
and how the revenue from the tariffs will be used
especially in the case of the US. Foremost, the near-term impact will depend on how confidence evolves
We have already seen worrying signs in various uncertainty indices
and lately also several US sentiment indicators have started to suffer
if the tariffs come into force as planned and companies expect at least part of them to be short-lived
activity in the near term could take a more sizable hit
while companies wait for more certainty on what is ahead
Various models give different results on the magnitude of the economic impact. The Peterson Institute for International Economics, for example, recently modelled how a 25% tariff on the EU would affect GDP and inflation
growth in Germany would take a hit of around 0.4 percentage points at most vs the baseline
the US economy would suffer clearly as well
and given that only tariffs against the EU were modelled here
the hit to the US economy should be much bigger
when tariffs on all countries are taken into account
the model suggests an upward move of around 0.5 percentage points at the point of peak impact
depending on the country, enough to cause some further headaches for central banks
but probably not enough to set the course for monetary policy on its own
we think risks are tilted towards further ECB rate cuts at the coming meetings
we still think that the upward inflation impact of the tariffs will keep the Fed on hold
but if the deterioration in confidence worsens and growth takes a more notable hit
rate cuts could rather quickly come back into play
the Fed still considers current policy to be clearly in restrictive territory
Market pricing of Fed rate cuts has increased rapidly
and a 25bp cut is currently fully in prices by the June meeting
while a total of around 100bp of cuts are in prices by the end of the year
the dollar did not gain on the tariff announcement
and EUR/USD actually subsequently surged higher
further suggesting a weakened USD sentiment
While our call of a lower EUR/USD to a large extent is based on interest rate differentials starting to favour the USD again more, risks to this view towards higher EUR/USD have increased clearly
See the full article on Nordea Corporate, Macro & Markets: The day after liberation day
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See how iBonds ETFs fit into your portfolio with our bond ladder tool
Financial advisors have been considering more ways to seek downside protection for 3 main reasons -
As many investors experienced first-hand in 2022
simply diversifying across stocks and bonds may not provide enough risk mitigation against changing market conditions
sitting on the sidelines in cash or trying to time the markets can prevent investors from achieving their financial goals
Rolling 12-month correlation of S&P 500 and Bloomberg US Aggregate Bond indices
Calculation based on monthly returns from 12/31/2013 to 12/31/2024
Correlation measures how two securities move in relation to each other
A correlation of +1 indicates returns moved in tandem
-1 indicates returns moved in opposite directions
Past correlations not indicative of future correlations
An attractive opportunity for targeted downside protection:
Advisors have more options today beyond structured notes or index-linked annuities to seek targeted downside protection
The rapid pace of innovation in the ETF industry has provided advisors an opportunity to utilize innovative strategies to seek such outcomes and move towards a recurring fee-based model for their appropriate clients
A way to differentiate your practice and attract new clients:
By providing access to targeted protection ETFs
advisors are better able to manage client expectations
which promotes a healthier relationship with their clients
These strategies are also used as a prospecting tool in a world where clients seek an innovative strategy from their financial advisor
iShares Buffer ETFs seek to track the share price return of the underlying ETF
while seeking to provide downside protection up to an approximate buffer against IVV losses for each applicable hedge period
iShares offers 3 types of Buffer ETFs on IVV that seek the following:
Gross and net expense ratios included below each fund ticker
The funds aim to provide their respective approximate downside buffer against price declines of the Underlying over the hedge period
before fees and expenses if held for the entire hedge period
the investment adviser to the Fund and an affiliate of BlackRock Investments
has contractually agreed to waive a portfolio of its management fees through11/30/2029 MAXJ
These buy-and-hold ETFs are designed to be used in a long-term
Where it fits within a portfolio depends on the investor’s overall risk tolerance and other holdings in the portfolio
We believe there are four primary ways that Buffer ETFs can be used in portfolios:
An investment in ETFs is not equivalent to and could involve significant risks not associated with an investment in cash
Understanding the return caps that are set at the start of each buffer period allows advisors to provide attractive trade ideas to their clients
if investors with significant cash allocations have a view that interest rates are on a pathway to fall within the next year
they are able to seek a return on the iShares S&P 500 ETF up to 7.61% with the iShares Large Cap Max Buffer Mar ETF (for the next one-year starting April 1st
while being protected on losses for the period.1
iShares Buffer ETFs enables investors to seek a new targeted level of protection in their portfolios with one common goal – to mitigate risk while seeking clearer outcomes
Explore a range of iShares ETFs to meet your clients’ investing goals
Discover what is behind the growth of outcome ETFs and why they can be a powerful tool within your practice
model allocations and portfolio analytics powered by Aladdin® technology
1 The Fund aims to provide a 100% downside buffer against price declines of the Underlying for the 1-year period
Read the prospectus carefully before investing
There can be no guarantee that a Buffered Fund will be successful in its strategy to provide downside protection against Underlying ETF losses
The Fund does not provide principal protection or non-principal protection
despite the Approximate Buffer (the “Buffer”)
an investor may experience significant losses on their investment
including the loss of their entire investment
A blended portfolio of Expiring Options and New Options during a Rebalance Period will impact the Fund’s ability to realize the full benefit of the Buffer or may subject the Fund’s return to an upside limit that is slightly lower or higher than the Approximate Cap (the “Cap") for the applicable Hedge Period
investors may bear losses against which the Buffer is anticipated to protect and be subject to an upside limit that is lower than the Cap
In the event an investor purchases Fund shares after a Hedge Period begins or sells Fund shares prior to the end of the Hedge Period
the returns realized by the investor will not match those that the Fund seeks to provide
the Fund’s return may be subject to downside protection significantly lower than the Buffer and an upside limit significantly below the Cap
A new cap is established during each Rebalance Period and is dependent upon current market conditions
The Buffered Funds invest in FLEX Options that derive their value from the Underlying ETF
FLEX Options are subject to counterparty risk
which is the risk that the other party in the transaction will not fulfill its contractual obligation
and may be less liquid than other securities
The value of FLEX Options may be affected by interest rate changes
actual and implied volatility levels of the Underlying ETF’s share price
and the remaining time until the FLEX Options expire
the Buffered Funds’ NAV may not increase or decrease at the same rate as the underlying ETF’s share price
The Fund is actively managed and does not seek to replicate the performance of a specified index
and may charge higher fees than index funds due to increased trading and research expenses
When comparing stocks or bonds and iShares Funds
it should be remembered that management fees associated with fund investments
are not borne by investors in individual stocks or bonds
The strategies discussed are strictly for illustrative and educational purposes and are not a recommendation
offer or solicitation to buy or sell any securities or to adopt any investment strategy
There is no guarantee that any strategies discussed will be effective
The information presented does not take into consideration commissions
which may significantly affect the economic consequences of a given strategy or investment decision
This material contains general information only and does not take into account an individual's financial circumstances
This information should not be relied upon as a primary basis for an investment decision
an assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial professional before making an investment decision
This information should not be relied upon as research
or a recommendation regarding any products
This material is strictly for illustrative
or informational purposes and is subject to change
Buying and selling shares of ETFs may result in brokerage commissions
The Funds are distributed by BlackRock Investments
ALADDIN and the iShares Core Graphic are trademarks of BlackRock
All other trademarks are those of their respective owners
AUD/USD is losing ground after the improvement toward a fresh four-month high of 0.6440 at the beginning of the week, showing the green light for a potential downside correction of the up leg 0.5913-0.6440.
The technical oscillators currently confirm the weak movement in the market. The MACD is moving lower above its trigger and zero lines, while the RSI is pointing downwards, approaching the neutral threshold of 50.
If the bears maintain control, the first support to look for would be the 38.2% Fibonacci retracement level of the downward wave from 0.6940 to 0.5913 at 0.6305. Just below, the 50-day and 20-day simple moving averages — currently at 0.6290 and 0.6270, respectively — are poised for a potential test, before potentially declining to the 23.6% Fibonacci at 0.6155.
Alternatively, a rally above the 50.0% Fibonacci of 0.6425 and the latest peak of 0.6440 could encounter strong obstacles at the 200-day SMA at 0.6460 and the immediate resistance at 0.6470, achieved on December 9. A successful rally above these levels could send the bulls to the restrictive region of 0.6530-0.6550.
To sum up, AUD/USD is still lacking a clear trend in the short- and medium-term timeframes, with the key level being the 200-day SMA for confirmation of a possible bullish move.
That said, National Australia Bank (NAB) cited higher loan arrears as a key factor underpinning the decline in its first-quarter profits. According to a February 19 disclosure, Australia’s biggest bank acknowledged that profits had declined due to a higher number of its customers failing to make loan repayments on time, as well as from experiencing more intense competition for new customers, which, in turn, eroded the bank’s margins.
Political influence may also prove decisive in subduing the performances of Australia’s biggest banks this year, with the Australian government expected to increase its scrutiny of the sector over the coming months. S&P predicted that Canberra will urge lenders to maintain some unprofitable services, although this demand is not likely to impact their credit ratings materially, as they should be able to manage any changes in costs.
Although the RBA cut its benchmark interest rate on February 18 for the first time in five years, CBA reported growth in its net interest margin (NIM) during the quarter. But with higher living costs likely to persist for some time yet, the bank also warned that borrowers will remain under pressure to repay their outstanding loans.
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Caroline D. Pham — Commodity Futures Trading Commission (CFTC)
Scott O’Malia — International Swaps and Derivatives Association (ISDA)
Marco Annunziata — Annunziata + Desai Advisors
Ken Simonson — Associated General Contractors of America
William C. Handorf — George Washington University School of Business
Salvatore Cantale — International Institute for Management Development
Peter Nathanial — International Institute for Management Development
Xu Hu — Chinese Academy of Financial Inclusion (CAFI)
Rafael Amiel — S&P Global Market Intelligence
Maria Paula Bertran — University of São Paulo
Alejandro Duran-Carrete — Alejandro Duran-Carrete
Lucas Lopes de Freitas — University of São Paulo
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Constantin Gurdgiev — University of Northern Colorado
Miguel Moreno Tripp — EGADE Business School
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Researchers say that while TikTok can be an ‘incredible tool for raising awareness and reducing stigma’
Less than half of the claims made about symptoms of attention deficit hyperactivity disorder (ADHD) in the most popular videos on TikTok align with clinical guidelines, a new study has found.
Two clinical psychologists with expertise in ADHD also found that the more ADHD-related TikTok content a young adult consumes, the more likely they are to overestimate both the prevalence and severity of symptoms in the general population.
People with ADHD are known to suffer inattention, hyperactivity and impulsivity – and may struggle to concentrate on a given task, or suffer extreme fidgeting.
Prescriptions for drugs for ADHD have jumped 18 per cent year-on-year in England since the pandemic, which underscores the need for accurate and reliable information, particularly on platforms popular with young people.
In this latest study, published in the journal Plos One, the two psychologists evaluated the accuracy, nuance, and overall quality in the top 100 #ADHD videos on TikTok.
They found the videos have immense popularity (collectively amassing nearly half a billion views), but fewer than 50 per cent of the claims made were robust.
Furthermore, many TikTok creators shared personal experiences without indicating that they do not necessarily apply to everyone with ADHD, and might even occur for people who do not have the disorder, the study suggested.
This lack of nuance may lead viewers to misinterpret symptoms or incorrectly diagnose themselves, it argued.
As part of the work, researchers carried out a study with 2,843 undergraduate psychology students, including 421 self-diagnosed with ADHD and 198 with a formal diagnosis, on their beliefs and how they perceived the videos.
The results showed that those young people who watched more of the ADHD content were more likely to recommend the videos, despite the unreliability of the information.
The researchers, from the University of British Columbia at Vancouver, said that, at its best, mental health content on social media from peers with lived experience may help support people who otherwise feel alone and afraid.
However, they said “easily digestible, short, and snappy videos created to grab users’ attention quickly may make it challenging to prioritise nuance”.
They added: “Crucially, the TikTok algorithm, ultimately, aims to extend the time users spend on the platform.
“To do so, TikTok leverages engagement cues such as viewing time, likes, comments, saves, and shares from previous visits to the platform to ensure the videos served to the user cater to their taste, in a process that can go largely unnoticed by users.
“The human tendency for confirmation bias, by which users preferentially read information that supports their pre-existing beliefs about health issues, while ignoring or harshly evaluating information that contradicts them, may compound this process.
“Repeated exposure to content that aligns with one’s pre-existing beliefs increases the content’s perceived credibility and the probability of sharing it, a phenomenon referred to as the echo-chamber effect.”
The work also noted that TikTok content creators receive payments if they get lots of views, as well as selling products and attracting sponsorship.
Lead author Vasileia Karasavva said: “TikTok can be an incredible tool for raising awareness and reducing stigma, but it also has a downside.
“Anecdotes and personal experiences are powerful, but when they lack context, they can lead to misunderstandings about ADHD and mental health in general.”
In the study, both clinical psychologists and the students were asked to rate the videos.
Psychologists gave the more accurate ADHD videos an average rating of 3.6 out of five, while young adults gave them 2.8.
The psychologists rated the least reliable videos at 1.1 out of five. Young adults rated them significantly higher at 2.3.
This suggests that misinformation may be slipping through unnoticed by most young people, the study suggested.
The team advised young adults to take action to verify social media information, such as cross-checking it with reputable sources such as medical websites, books and healthcare professionals.
They should also see medical staff for guidance on ADHD and other concerns, as well as considering whether stress, anxiety or cognitive overload could be contributing to difficulties before assuming they have ADHD.
Inattentiveness (difficulty concentrating and focusing)
Dr Blandine French, from the University of Nottingham, welcomed the study, adding: “Social media can be a great source of support but shouldn’t be a place for diagnosis as it is not made for this.
“It should be used alongside other more reliable methods, sources and information.”
Professor Philip Asherson, from King’s College London, suggested the study may not capture all the traits of ADHD that many people experience.
He said: “It is of interest that those with a formal diagnosis access TikTok most, followed by those with self-diagnosis.
“This suggests that the main driver of looking at TikTok videos of ADHD is to learn more about ADHD, rather than the videos leading to excess self-diagnosis.
“A more subtle but essential point is that many ADHD symptoms are a continuous trait/dimension in the general population.
“So there is no clear boundary between those with clinically significant levels of ADHD symptoms and impairments, and those with higher than average levels of ADHD symptoms.
“Many people who do not meet full ADHD criteria may nevertheless struggle with some ADHD symptoms at times and seek information on better to manage this aspect of their lives.
“The videos are therefore of more general relevance than only adults meeting full ADHD criteria. Many self-diagnosed people may fall in this category.”
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Misinformation about attention deficit hyperactivity disorder (ADHD) on TikTok is widespread
After 100bp of interest rate cuts in late 2024
Chair Powell suggests that the Fed aren’t in a hurry to ease policy further and a no change outcome is widely expected on 19 March
But President Trump’s spending cuts and trade protectionist policies are hurting growth prospects and will likely force the central bank’s hand in the second half of 2025
At the start of the year there was plenty of optimism around
The economy was in decent shape and the expectation was that President Trump would come in and turbo charge the growth story with tax cuts and deregulation
When combined with potentially inflation-boosting tariffs and immigration controls markets sensed the Federal Reserve would have less scope to cut rates
As recently as 12 February financial markets were pricing only one 25bp interest rate cut for the year ahead
it turns out that President Trump’s initial priorities are government spending cuts and trade protectionism
This has heightened concerns about job cuts
but also potentially amongst millions of private sector contractors employed in the government sector
which may escalate significantly as President Trump seeks to reshore manufacturing activity
is raising concerns about potential price hikes hurting consumer spending power and a fear amongst corporates that higher input costs could squeeze profit margins
Reciprocal tariffs from foreign governments and consumer boycotts would then compound the problems for US exporters
The result has been weaker sentiment and spending numbers
Disappointing economic data and President Trump showing no sign of wavering in his commitment to these policies has led equity markets to take a dimmer view on the prospects for the economy
Chair Powell will likely play down those fears in the post-meeting press conference
he stated that “despite elevated levels of uncertainty
economy continues to be in a good place.” He described growth and labour market numbers as “solid” and while acknowledging weaker consumer confidence prints he argued that “sentiment readings have not been a good predictor of consumption growth in recent years”
As such “we do not need to be in a hurry [to alter monetary policy]
and are well positioned to wait for greater clarity.”
We therefore expect the Fed to largely retain their forecasts from December and signal that their base case remains two 25bp rate cuts this year
There is no pressing need for additional rate cuts given that unemployment is low and inflation is still tracking hot and is likely to remain above target through the rest of the year given the impetus from tariffs
the outlook for growth is cooling and the pressure for the Fed to offer more support to the economy will likely grow
We expect falling new tenant rents to translate into lower CPI housing inflation prints in late 2025 and this should mitigate much of the inflation threat from tariffs
This should give the Fed the room for interest rate cuts in September and December with a third 25bp move in March next year
Chair Powell was asked one question on quantitative tightening (QT)
He read out what seemed like a prepared statement
basically saying nothing of any materiality
But then the subsequent minutes showed that the path for QT was in fact a talking point among the committee members
continued QT at the current pace would likely see bank reserves converge on US$3tn by mid-year 2025
That US$3tn area approximates 10% of GDP and is deemed to be something of a floor that the Fed would prefer not to get too much through
The last time the Fed did QT they took bank reserves down to 7.5% of GDP
There is an argument that say 9% of GDP might do
but either way we'd see the move into single-digit territory as a % of GDP as the point at which the Fed would be minded to wind down QT
the Fed would be a regular buyer of Treasuries
With US$50bn to US$100bn rolling off the curve on a monthly basis
the Federal Reserve would be buying that amount on the marketplace in order to keep their current holdings of Treasuries unchanged
At the last FOMC meeting they broadly agreed to invest according to the capitalisation distribution of debt outstanding
This means they will be buying right along the curve
It won't be determinative for direction
it returns us to the 'norm' where the Fed is a constant 'market participant' as it manages its reserves obligations on an ongoing basis
the dots and Chair Powell's tone are the big issues for Treasuries
But likely balanced out by tariff projections on inflation
should Fed Chair Powell succeed in reining in some recession fears and bring market pricing back towards just two 25bp Fed cuts this year
Whether the US stock market would like that remains to be seen
but overall we could see the dollar enjoy a modest recovery against the G10 outperformers this year – the Scandi currencies
the Japanese yen and even against the recently re-appraised euro
Softer US activity and this year's 50bp dovish re-pricing in the 2025 Fed easing cycle have been major driving factors in the EUR/USD rally – as well of course as the prospects of looser fiscal policy in Europe
So let's see whether any less troubling US data or Fed confidence can help the dollar find some kind of floor
According to Material Indicators (@MI_Algos)
BTC bid support at the YO level of $93.5k was removed
with another block of bids stair stepping down
This technical shift paves the way for potential downside volatility as traders prepare for Wednesday’s upcoming economic reports and the monthly close
If BTC manages to reclaim and hold the $93.5k YO support
it could trigger a significant short squeeze
making this level a key focus for both bulls and bears in the near term (Source: Material Indicators on Twitter
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He’s the father of what you might call the orphan-industrial complex
the discovery that there is a fantastic amount of money to be made out of the sentimental feelings aroused in the well-heeled and tender-hearted by waifs in general and orphans in particular
It has taken more than a century for the orphan-industrial complex to reach its final form
A report in yesterday’s Sunday Times described the experiences of a young Nepali girl called Rijya
who grew up in a privately run orphanage in Kathmandu
Rijya’s papers said that she had no parents
and the staff at the home assured her of the same thing
But the penny started to drop when she noticed adults showing up at the gates of the orphanage demanding to see their children
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The proposed tariff schedule introduced by the Trump administration has heightened uncertainty for China’s construction industry
The construction industry in China is expected to face downside risks in 2025 due to the ongoing trade war between China and the US
Following the imposition of tariffs by US President Donald Trump’s administration on all Chinese imports
demand for Chinese products is expected to decline in the coming period
Given that the US is China’s largest trading partner
the US tariffs would therefore indirectly cause knock-on effects for the Chinese economy as a whole and also adversely affect the beleaguered construction industry
Despite the trade war between China and the US
According to TradeMap (International Trade Centre)
China exported goods worth $524.9bn to the US in 2024
China imported only $165.2bn worth of US goods last year
Chinese exports to the US rose by 12% in March 2025
as businesses resorted to frontloading to avoid the impact of the higher duties
According to the latest data released by the National Bureau of Statistics (NBS)
grew by 9.1% year-on-year (YOY) in March 2025
following YOY growth of 2.9% during January-February 2025
the total value of imports from the US declined by 9.5% YOY in March 2025
after a modest YOY growth of 1.4% during January-February 2025
The Chinese economy is expected to be hit severely due to the tariff war
could drive Chinese exports to the US close to zero
The tariff hikes are also expected to place significant pressure on the Chinese labour market
Already grappling with a property market slump
the Chinese economy faces heightened risks
the American multinational investment bank and financial services company
reduced its growth forecasts for China on 10 April 2025
The country’s GDP is now expected to grow by 4% in real terms in 2025 and 3.5% in 2026
down from earlier forecasts of 4.5% and 4%
downgraded China’s long-term foreign currency credit rating on 3 April 2025
citing weak public finances and rising debt levels
China is likely to focus on domestic stimulus
and maintaining a strong yuan to shift inflationary pressure onto the US
Additional policy support is also expected to be introduced
Goldman Sachs now forecasts that Chinese authorities will cut the policy rate by 60 basis points in 2025
up from previous expectations of 40 basis points
To ease pressure from the ongoing US-China trade war
Chinese electronics component manufacturers announced plans to offer discounts of up to 5% to Indian companies as part of new sourcing contract negotiations
China extended an invitation to strengthen ties with the European Union (EU) to defend globalisation and push back against what it called US “bullying” tariffs
China signed two agricultural trade protocols with Spain to deepen economic ties
China aims to expand trade with countries hardest hit by Trump’s tariffs
China and Vietnam signed multiple cooperation agreements to strengthen trade ties
including efforts to enhance supply chains
contributing to stagnation in labour markets and weakening aggregate demand
High tariffs on all steel and aluminium products are expected to affect the sector significantly
As steel and aluminium are critical construction materials
the rising cost of these inputs is likely to impact construction output in the short to medium term
Elevated material prices are expected to be passed on to consumers
inflating construction costs and reducing the affordability of new builds
In addition to existing weaknesses in industrial construction activity
the intensifying US-China trade war is expected to dampen investor confidence
potentially leading to reduced investment in the construction industry in the near term
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ShareSaveCommentMoneyMarketsMore Downside For Upstart Stock?ByTrefis Team
Forbes contributors publish independent expert analyses and insights. Building a platform to do the job of 1 million analystsfor Great SpeculationsFollow AuthorApr 21
04:30am EDTShareSaveCommentCANADA - 2025/02/06: In this photo illustration
the Upstart Holdings logo is seen displayed on a ..
(Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images)
Upstart’s main business model—linking borrowers and lenders via its AI platform—faces a significant hurdle: its vulnerability to interest rate shifts
This sensitivity has shown up in the company's recent financial results:
Evaluating Upstart’s financial health offers a mixed view:
Several external risks weigh on Upstart's near-term outlook:
Upstart trades above the S&P 500’s 2.8x
though it’s consistent with its three-year average
This suggests that investors are still expecting significant growth despite headwinds
Though the stock is far below its recent highs
and a relatively high valuation leaves limited margin for error
Recent revenue growth shows that Upstart’s AI lending model can thrive in low-rate environments
but the business remains highly exposed to broader economic cycles and credit market disruptions
the key question isn't whether Upstart can grow in ideal conditions—it clearly can—but whether it can build the resilience to withstand downturns without the extreme volatility seen in its stock
Holding on to a declining stock is never easy
Trefis collaborates with Empirical Asset Management—a Boston-based wealth manager whose strategies produced gains even during the 2008-09 crisis when the S&P 500 fell over 40%
Invest with Trefis
Market Beating Portfolios | Rules-Based Wealth
Analysis of potential US election outcomes—using tailored industry scenarios available as part of our Global Industry Service—shows that risks
range from firmly negative to marginally positive in the various plausible post-November policy trajectories
Our baseline forecast is for some form of divided government that will not alter the current trajectory of industrial growth
If either side achieves a governing trifecta and fully implements its agenda there are
differences: the growth consequences are mostly negative under former president Trump and mostly positive (albeit very marginal) under Vice President Harris
For more insights on the 2024 US Presidential Election, click here.
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A French Rothschild banker offers a new way out
Lining up in 2022 to buy diesel fuel in Colombo
accepting a reduction in their principal and lower interest rates
In exchange they get what’s called a sweetener
giving them extra payments if the country’s economy improves—in some cases
amounting to a multibillion-dollar jackpot
But there’s a problem: Governments in poor countries have tended to lose out
because debt payments often rise much more than they expected
leaving taxpayers saddled with even heavier bills.