Now an exercise in extinguishing multiple fires

Fed's Hope of A Soft Landing Dashed

BankerAdvisor's Ongoing Series of How Fintech is Making Lives Better

Remitting it Forward

Private Equity Carried Interest Provision Lives On

Run on digital assets leads platforms to freeze user accounts, including withdrawals. Bankruptcy looms. 

The Big Chill in Crypto

Germany, Europe’s New ‘Problem Child,’ Has a Series of Self-Inflicted Issues

Is German Deindustrialization Underway?

The Impact of Two Consumer Classes and the Fed Funds Rate Outlook 

A Tale of Two Consumers

Coinbase, Google Cloud, MinePlex among deals

Crypto Still Has Fans...And Deals

Firm to combine asset, wealth and consumer banking into one unit

Goldman Sachs Reorganization 

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SWIFT said it is uniquely positioned to interlink the fragmented digital asset landscape with its forthcoming digital currency trials in 2025. Banks in North America, Europe and Asia are preparing to participate in trials involving digital assets by the Society for Worldwide Interbank Financial Telecommunication (SWIFT).  SWIFT announced on Oct. 3 that it will begin digital asset trials on its network in 2025. The trials will involve experiments with transactions that include multiple digital currencies and assets.

Banks to join SWIFT digital asset trials in 2025

ARK Invest founder and CEO Cathie Wood expects that a “changing of the guard” at the United States Securities and Exchange Commission may turbocharge the economy and bring about an influx of innovation and investment in emerging technologies.  “Deregulation, defanging the SEC, FTC, and others, government spending cuts, tax cuts, and a focus on technologically enabled innovation are likely to turbocharge the US economy,” she said, in sharing a video posted by ARK Invest on X on Nov. 11. “We have more clarity now in terms of the investment landscape after the election,” 

‘Defanging the SEC’ may turbocharge US economy: Cathie Wood

In recent days, multiple central bank policymakers not only have noted the uncertainty surrounding tariffs, they also have highlighted the potential impact on inflation. Chicago Fed President Austan Goolsbee cited a number of supply chain threats that include “large tariffs and the potential for an escalating trade war.” Economists generally see tariffs as having one-time impacts on prices. However, in this case Trump is casting a wide enough net that it could generate the kind of underlying inflation the Fed fears. Federal Reserve officials take great pains not to comment on fiscal policy, but the looming threat from tariffs is forcing their hand.

Fed officials are raising concerns about the impact Trump’s tariffs could have on inflation

Calastone, the largest global funds network, has today released groundbreaking research, revealing that tokenisation – the process of transforming asset ownership into digital tokens on a blockchain – holds the potential to unlock over $135 billion[2] in cost savings for the asset management industry. The research also identifies that fund processing costs are projected to rise by 32% over the next three years, putting firms under increasing pressure to modernise.

Calastone Research Reveals Tokenisation Could Save $135 billion for Asset Management Industry

As lockdowns gripped Europe in late 2020, KKR was battling to plant its flag in one of the pandemic’s winning industries. The private equity pioneer lost out that year in its bid for German road bike maker Canyon, a darling of Instagram. But bankers later pitched KKR’s dealmakers a consolation prize: Accell, a less modish Dutch manufacturer.  It led to an investment that could become one of the New York buyout giant’s worst in Europe. KKR launched a €1.8bn bid to take Accell private with the backing of its largest shareholder, Teslin, in January 2022.  Less than two years later, Accell found itself struggling under the burden of its debts as a post-pandemic sales slump left it burning through cash. 

Is KKR’s bad bet on cycling the start of Europe’s private equity reckoning?

Treasury yields moved higher Tuesday following a poor auction on the five-year note and as investors await fresh data releases on inflation. Yields perked up after a $70 billion Treasury Department auction of 5-year notes was met with weak demand. The bid-to-cover ratio, a widely followed demand gauge, came in at 2.3, below a 10-auction average of 2.45. Investors are hungry for more data on the economic and inflationary picture after the minutes from the Federal Reserve’s latest meeting, released last week, showed uncertainty among policymakers about when to ease policy. On Friday, they will parse the April personal income and expenditures report, which includes a measurement of price movements across a range of consumer expenses.

10-year Treasury yield rises above 4.5% following weak auction

China's central bank said on Thursday it would start accepting applications from financial institutions to join a newly created funding scheme, initially worth 500 billion yuan ($70.62 billion), to aid the capital market. The People's Bank of China (PBOC) said eligible securities firms, fund companies and insurers can apply to join the swap scheme, which gives them easier access to funding to buy stocks.

China kicks off 500 bln yuan swap facility to aid stock market

The Reserve Bank of India has cut its key interest rate for the first time in nearly five years, as cooling inflation has offered room to stimulate the slowing economy. The central bank forecast real GDP growth for next fiscal year at 6.7%, and inflation rate at 4.2%. The Monetary Policy Committee decided to trim the repo rate by 25 basis points to 6.25%, RBI Governor Sanjay Malhotra said in a livestreamed address.

India’s central bank cuts rates for the first time in nearly five years, forecasts faster growth next year

Fintech stocks were some of the biggest decliners on Monday as the Nasdaq suffered its steepest drop since 2022. Crypto-related companies Robinhood, Coinbase and Strategy all notched double-digit declines. Analysts at JPMorgan Chase noted that “sentiment has soured of late” in fintech.

Fintech stocks plummet as Wall Street worries about consumer spending, credit

An inflation gauge in Japan that is closely watched by the Bank of Japan (BOJ) came in at a seven-month high in November, which could prompt the central bank to raise rates early next year. The so-called “core-core” inflation rate, which strips out prices of both fresh food and energy and is tracked by the BOJ, rose to 2.4% from 2.3%, its highest level since April. The core inflation rate — which strips out prices of fresh food — came in at 2.7%, up from the 2.3% seen in October and beating the 2.6% forecast by economists polled by Reuters.

An inflation gauge tracked by the Bank of Japan just jumped to a seven-month high

China kept its main benchmark lending rates unchanged on Friday, as Beijing faces the challenge of bolstering economic growth while backstopping a weakening yuan. The People’s Bank of China said it would steady the one-year loan prime rate at 3.1%, with the five-year LPR at 3.6%. The 1-year LPR affects corporate and most household loans, while the 5-year LPR serves as a reference for mortgage rates. The move was expected according to a Reuters poll of 27 economists. The rate decision came on the back of a widely-expected 25-basis-points rate cut by the U.S. Federal Reserve on Wednesday. The Fed also indicated it will only reduce interest rates twice in 2025, fewer than the four cuts in its September meeting’s projection.

China keeps benchmark lending rates steady as Fed signals fewer cuts ahead

Goldman Sachs has unveiled several new actions as it looks to strengthen its services for corporate and investor clients and grow its business in private credit, private equity, and other asset classes. These actions include the creation of a Capital Solutions group and the expansion of its alternatives investment team in its Asset and Wealth Management division. 
The Capital Solutions group will bring together and expand Goldman Sachs’ activities related to financing, origination, structuring, and risk management, which are currently part of its Global Banking and Markets division. 

Goldman Sachs launches Capital Solutions group to grow private credit and equity business

The turmoil in global markets this past week is causing private credit funds to question whether they should reconsider the ever-tighter loan margins they’re demanding. Industry stalwarts such as Ares Management Corp. and Blackstone Inc. have been charging less for private credit for most of this year, according to data compiled by Bloomberg News, as they try to snatch business away from the syndicated loan market. But that strategy may change after recession fears have risen amid a slew of worrying economic reports. 

Private Credit Is Eyeing Bigger Margins on Loans: Credit Weekly

Companies owned by private equity firms are landing in default more frequently than other speculative-grade borrowers, according to a report from Moody’s Ratings. Private equity-backed companies defaulted at a rate of 17% between January 2022 and August of this year, twice the rate of non-private equity-backed companies, Moody’s said in the report released Thursday. Among the 12 largest private equity sponsors — as ranked by Moody’s — the default rate was slightly lower at around 14%.  Platinum Equity had the highest number and share of defaults, out of Moody’s ranking of the 12 largest sponsors, followed by Apollo Global Management and Clearlake Capital Group. 

PE-Backed Firms Suffering Higher Default Rates, Moody’s Says

Guernsey stock exchange now provides a facility for trading shares in privately held companies. A stock exchange based in the Channel Islands is trying to capitalise on a global drought in initial public offerings with the launch of a facility for buying and selling shares in privately held companies. But this reinvention of its role looks likely to attract stiff competition from larger rivals. The International Stock Exchange (TISE) — which has, for years, specialised in providing a listing venue for corporate debt — last year launched a unit allowing private companies to run auctions in their own shares, without the need for a broker.


TISE finds best place to capitalise on private assets

Klarna, which is known for its popular buy now, pay later business, said Wednesday it has confidentially filed IPO documents with the SEC. Analysts recently valued the company in the $15 billion range. Klarna investors include SoftBank, Sequoia Capital and London-based firm Atomico.

Buy now, pay later provider Klarna says it filed confidentially for U.S. IPO

Russia’s central bank on Friday unexpectedly left its key interest rates unchanged at 21%, citing improved monetary tightness that had created the conditions to tame sky-high inflation.
Markets had widely expected the central bank to hike interest rates by another 200 basis on Friday, after taking such a step in October. Russia’s consumer price index hit 8.9% in November on an annual basis, up from 8.5% in October.

Russian central bank surprises markets by holding key rate at 21%

The Bank of Korea held its benchmark policy rate at 3% in a surprise move so as to assess changes in domestic and external economic conditions. The BOK’s decision surprised economists polled by Reuters, which were expecting a 25-basis-points cut. The BOK also said that GDP growth would “highly likely” miss its 2024 and 2025 forecasts.

Bank of Korea leaves rates unchanged in a surprise move, warns GDP growth ‘highly likely’ to miss forecasts

In the summer of 2022, a young marketing executive in London, eager to revamp her wardrobe, clicked “Pay in 4” at checkout. The process was seamless—no credit check, no hassle, and most importantly, no immediate cash outflow. Fast forward six months, she found herself juggling payments across three different BNPL providers, struggling to keep up as late fees and missed payment penalties mounted. Her story is not unique. BNPL has redefined consumer credit, offering frictionless financing at the point of sale. But beneath its convenience lies a pressing concern—are we enabling financial empowerment, or are we simply repackaging debt in a more palatable way?

The BNPL Boom: The Good, The Bad, and The Regulatory Challenge

Online trading platform Robinhood has agreed to pay $29.75 million to settle several probes from the Financial Industry Regulatory Authority (FINRA) related to the company’s supervision and compliance practices.  The settlement figure consisted of a $26 million civil fine and $3.75 million restitution to customers, FINRA said on March 7. Robinhood failed to “respond to red flags of potential misconduct,” FINRA said, leading to Anti-Money Laundering and supervisory and disclosure violations.

Robinhood to pay $30M to settle US regulator probes

eToro Group Ltd (“eToro”) today announced that it has publicly filed a registration statement on Form F-1 with the U.S. Securities and Exchange Commission (“SEC”) relating to the proposed initial public offering of its Class A common shares. The number of shares to be offered and the price range for the proposed offering have not yet been determined. eToro has applied to list its Class A common shares on the Nasdaq Global Select Market under the ticker symbol “ETOR.” The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or other terms of the offering.

EToro goes public on IPO filing

Launched in July 2023, the Federal Reserve's FedNow service has been a game-changer in the U.S. payments landscape. With over 900 financial institutions onboarded, including major players like Chase and Wells Fargo, FedNow is reshaping the future of payments in the U.S. FedNow represents a significant shift from the traditional Automated Clearing House (ACH) system to real-time payments, ensuring transactions are processed instantly, 24/7/365. ACH, while effective, typically requires one to two business days for transaction completion. In contrast, FedNow processes payments in seconds, offering a faster and more efficient alternative that aligns the U.S. with global payment standards. 

One Year Since the FedNow Launch: What You Should Know

Authorised Push Payment (APP) fraud continues to be one of the most pressing concerns for financial services, the payment industry, law enforcement and the general public – and new developments in cross-border payments may be making it easier. A new study by The Payments Association, the UK’s community and advocate for the payments industry, highlight how the speed and anonymity of cross-border payments, and the global patchwork of different regulatory regimes, is being exploited by criminals. APP fraud is easy to understand and, unfortunately, equally easy to carry out. Essentially, APP fraud is any type of fraud that uses an Authorised Push Payment – whenever a person is tricked into voluntarily sending a payment to another person. 

Cross-Border Payments Could Further Enable APP Fraud, Says Payments Association Study

The University of Michigan’s gauge of consumer sentiment fell to 67.8 in a preliminary February reading, down from 71.1 in the prior month and the lowest reading since July.  Economists polled by the Wall Street Journal had expected sentiment to rise to a reading of 74 in February. The decline in sentiment was widespread, with lower readings for Republicans, Democrats and independents. Another key part of the report is the University of Michigan’s measure of inflation expectations. According to the report, Americans’ expectations for overall inflation over the next year jumped to 4.3% in February from 3.3% in the prior month. 

Consumer sentiment drops sharply in February as inflation worries soar

Chime Financial has reportedly confidentially filed for an initial public offering (IPO) in the US, according to a report by Bloomberg. The Bloomberg report, citing sources familiar with the matter, says that Chime is targeting 2025 for its public debut, but its sources add that the timing has yet to be confirmed and plans may change. Founded in 2012, Chime provides digital-first mobile banking solutions to more than 22 million users in the US, offering services such as cashback rewards, checking and high-yield savings accounts, a Visa-powered credit and debit card, earned wage access services, and more. 

US fintech Chime reportedly submits confidential filing for potential 2025 IPO

U.S. merchants who use JPMorgan to handle payments can soon add Affirm to their checkout pages, according to a release. Consumers will have access to loans ranging from 30 days to 60 months, according to Affirm. The deal follows a similar announcement from rival Klarna last month, in which the Swedish fintech said it would be available to JPMorgan’s merchants.

Affirm announces JPMorgan Chase merchants can soon offer installment loans at checkout

For a good few hours on April 9th, disaster beckoned. Share prices had been falling for weeks. Then the market for American Treasury bonds—normally among the safest assets available—started convulsing, too. The yield on ten-year Treasuries leapt to 4.5% (see chart 1), up from 3.9% days earlier. That meant bond prices, which move inversely to yields, had cratered. The failure of both risky and supposedly safe assets at once threatened to destabilise the financial system itself.  

America’s financial system came close to the brink

The European Central Bank on Thursday cut its key interest rate to 3.25%, in its third quarter-percentage-point reduction of the year. The move had been fully priced by markets after policymakers flagged reduced inflation risks and a weakening growth outlook.  It is the first time the ECB has reduced rates at consecutive meetings since December 2011.

European Central Bank lowers key rate to 3.25% in third cut this year: Live updates

Interest rates are coming down, but only after one of the most brutal monetary tightening periods in modern history. And they’re probably coming down too late, too little and too slowly for a lot of smaller companies and the investment funds that chucked money at them over the past few years. Private credit — basically, bilateral corporate loans made by specialist investment funds rather than banks — has been one of the hottest asset classes over the past decade. Possibly the hottest. Depending on who you believe, there’s somewhere between $2tn and $3tn of money in private credit funds.


How is private credit weathering its first big rate hiking cycle?

A Bitcoin-related bill is gaining support in the United States, signaling a potential boost for the cryptocurrency’s value, which could hit $1 million. Former President Donald Trump’s victory in the 2024 presidential election on Nov. 5 has sparked optimism for more crypto-friendly policies.
One of the most anticipated bills is the Bitcoin Act, championed by Wyoming Republican Senator Cynthia Lummis, which proposes the creation of a strategic Bitcoin BTC tickers down $98,418 reserve for the US, making it the first nation to use it as a “savings technology.”

US Bitcoin reserve during Trump presidency could pump BTC to $1M

HPS Investment Partners could hardly be more different than its suitor, BlackRock. Whereas BlackRock, an $11.5tn powerhouse, is best known for investing clients’ funds across huge swaths of public markets, HPS has earned a windfall on targeted bets in the private lending sector. BlackRock’s more than $12bn deal for HPS earlier this month comes as the world’s biggest asset manager is seeking to compete with groups such as Blackstone and Apollo, which are already deeply entrenched in a market widely seen as one of the next major battlegrounds in finance. 



Why BlackRock is shelling out $12bn for private credit shop HPS

London-based fintech Zepz is laying off around 200 IT workers as part of a major redundancy plan, two employees impacted by the move told CNBC. Zepz confirmed to CNBC it is eliminating roles to “sustainably support the next phase of long-term strategic goals and continued growth.” As part of the cost-cutting exercise, Zepz also proposed the closure of business units in Kenya and Poland.

Fintech unicorn Zepz to lay off 20% of its global workforce, sources say

The US Senate has voted to overturn a Consumer Financial Protection Bureau rule that would give the watchdog oversight of tech giants, such as Apple, Google and X, that offer digital payment apps and wallets. Voting along party lines, the Senate backed a Congressional Review Act resolution introduced by Republicans Pete Ricketts and Mike Flood. It still needs to pass in the House of Representatives. Finalised late last year, the CFPB rule is designed to ensure that the big nonbank players follow federal law just like large banks, credit unions, and others already under its supervision.

Senate votes to scrap CFPB oversight of Big Tech payment apps

US fintech Block is laying off 931 staff and closing 748 open roles, as the mobile payments and POS company undergoes a major reorganisation. Dorsey told staff that 391 roles would be cut for "strategy" reasons. A further 460 people who scored a "below" rating on the company's internal performance tracking metrics are also being ditched. Eighty manager roles are also to be eliminated in an attempt to flatten the company's hierarchy.

Block chops 931 staff and closes open positions

A group of private credit lenders led by Blue Owl Capital and Ares Management has agreed to take over troubled software company Pluralsight, wiping out $4bn that Vista Equity Partners and other investors had put into the business since they bought it less than four years ago. The closely watched restructuring is one of the biggest in which the creditors that ultimately take control are also so-called direct lenders. The deal values Pluralsight at about $900mn, far below the more than $5bn that Vista, its partners and private lenders had invested or lent to the business. Vista and its co-investors had sunk roughly $4bn into Pluralsight, while lenders provided it with about $1.7bn of debt financing.


Vista and co-investors lose $4bn in Pluralsight restructuring

The RBA cut rates by 25 basis points to 4.10% on Tuesday, marking its first easing since November 2020, when the central bank cut its key rate to a record low in the depths of the pandemic. The central bank had held its policy rate steady at 4.35% since November 2023, following an extended period of 13 rate hikes to tame inflation at home.

Australia’s central bank cuts rates for the first time in more than four years, flags economic uncertainties

Blackstone (BX.N), beat Wall Street's expectations on its key quarterly earnings metric on Thursday, as the world's largest alternative investment firm's assets under management (AUM) hit a record $1.1 trillion and the value of its funds rose. New York-based Blackstone said it saw $41 billion of inflows during the third quarter, while it deployed and committed $54 billion of capital - the highest in over two years - amid a revival in dealmaking activity as the U.S. Federal Reserve cut rates and the economic outlook remained sanguine. Over the past few quarters, high interest rates had been a drag on some aspects of Blackstone's business. With the Fed now entering into an easing cycle, the firm saw that weight starting to lift.

Blackstone tops profit estimate as its assets hit record, dealmaking picks up

Klarna Group Plc has filed for a U.S. initial public offering at a weak moment for company debuts, though the fintech player thinks it can offer investors more than just its buy-now-pay-later products. Klarna said it was profitable in 2024, with its per-share net profit of 1 cent last year contrasting with a per-share net loss of 69 cents a share in 2023. The company said its revenue last year rose to $2.8 billion, from $2.3 billion. It ended 2024 with $3.2 billion in cash and equivalents, according to a late Friday filing with the U.S. Securities and Exchange Commission. The company did not disclose the number of shares it seeks to sell on the market nor their expected price range.

Fintech Klarna files for IPO at a weak point for public debuts

The total value of crypto stolen in 2024 was up 21% on the previous year, although still way down on the $3.7 billion nabbed in 2022. Hackers linked to North Korea have become notorious for their sophisticated and relentless tradecraft, often employing advanced malware, social engineering, and cryptocurrency theft to fund state-sponsored operations and circumvent international sanctions. In 2024, North Korea-affiliated hackers stole $1.34 billion across 47 incidents — more than double the amount taken the previous year.

North Korea hackers behind 60% of all crypto stolen in 2024

Investment bankers are gearing up for a pickup in dealmaking activity in global equity capital markets this year, buoyed by a promising pipeline of anticipated initial public offerings of several high-profile companies. Liquefied natural gas producer Venture Global, privately held medical supply giant Medline, and cybersecurity company Sailpoint, backed by private equity firm Thoma Bravo, are expected to headline a crowded line-up of stock market flotations in the first half of 2025, according to people familiar with the matter. Private equity firms have been struggling to sell or list portfolio companies over the past two years due to high interest rates and volatile stock markets that put a chill on dealmaking.

Bankers hope for IPO revival in 2025 as high-profile listings stack up

The Trump administration has exhausted its legal authority to issue new incremental debt to pay the U.S. government’s obligations — for everything from Social Security checks to military operations. It will soon run out of cash, too, though nobody knows for certain what that date will be. The so-called “x date” — the point in the calendar when the U.S. Treasury will have exhausted all its emergency cash-management strategies — could come as soon as May, and its precise date will have major implications for President Donald Trump’s tax plans and for markets.

Trump’s Treasury is running out of money fast. Why the ‘x date’ matters for markets.

Fed Chair Jerome Powell said Wednesday that the central bank could find itself in a dilemma between controlling inflation and supporting economic growth. “If that were to occur, we would consider how far the economy is from each goal, and the potentially different time horizons over which those respective gaps would be anticipated to close,” he said for a speech in Chicago. Powell gave no indication on where he sees interest rates headed, but noted that, “For the time being, we are well positioned to wait for greater clarity before considering any adjustments to our policy stance.”

Powell indicates tariffs could pose a challenge for the Fed between controlling inflation and boosting growth

In a significant move to counteract international sanctions and reduce dependency on the global financial system Swift, Russia has called on BRICS nations to establish a new cross-border payments network, reported Bloomberg. This initiative is aimed at facilitating transactions in local currencies and strengthening economic ties within the bloc. The proposed network would involve a consortium of commercial banks capable of executing transactions in the respective local currencies of BRICS countries. It also suggests the establishment of direct connections between central banks to further insulate the group from external financial systems.

Russia proposes Swift alternative for cross-border payments

Mastercard introduced a new solution that will enable banks to facilitate commercial cross-border payments that are near real-time, predictable and transparent. The new Mastercard Move Commercial Payments is designed to simplify operations, optimize liquidity, reduce counterparty risk and provide end-to-end visibility for banks and their customers, the company said in a Monday (Oct. 21) press release.

Mastercard Introduces New Commercial Cross-Border Payment Solution for Banks

Five banking associations have called on the CFPB to withdraw its new regulation on overdraft fees, arguing that it is unnecessary due to recent innovations and could potentially harm consumers.The coalition, which includes the Bank Policy Institute and the American Bankers Association, cautioned that the rule would harm millions of consumers who rely on overdrafts, particularly those with limited, if any, options for meeting short-term liquidity needs.

Banking Associations Warn New Overdraft Rule Could Harm Consumers

Major private equity firms have faced significant obstacles in selling or listing their China-based portfolio companies in 2023, with Beijing’s tightening restrictions on IPOs and a decelerating economy having left foreign investors’ capital effectively trapped, according to a report by the Financial Times. Citing data from Dealogic, the report reveals that none of the 10 largest global private equity groups operating in China have successfully listed a Chinese company or fully exited through M&A this year. This marks the first such occurrence in over a decade, though the pace of exits has been sluggish since Beijing imposed restrictions on Chinese companies’ overseas listings in 2021. 

Blackstone, KKR, CVC curbed by China’s IPO clampdown

Americans express rising alarm over economy and job prospects as Trump’s tariffs weigh on outlook. Wall Street stocks dropped on Friday as signs of strain among American consumers added to worries the US is heading for a bout of stagflation. A batch of data added fresh evidence that consumers are growing deeply concerned about how President Donald Trump’s sweeping tariffs will affect the world’s largest economy, while a separate report showed the Federal Reserve’s preferred inflation measure rose in February. 


US stocks tumble as consumer gloom raises stagflation fears

The European Central Bank is all but certain to cut interest rates for the seventh time in a year on Thursday, looking to prop up an already struggling economy that will take a large hit from U.S. tariffs. The ECB has been easing borrowing costs rapidly as undue price pressures have largely disappeared and recent turmoil on global markets is likely to bolster the bank's conviction that euro zone inflation is under control, adding to the case for further policy easing. But ECB President Christine Lagarde is unlikely to offer many clues about the future, sticking instead to her line that uncertainty remains far too great for the bank to commit to anything, and it will decide its next steps as data come in. 

ECB to Cut Rates Again to Help Economy Weather Erratic U.S. Trade Policy

State Street Global Advisors, the asset management business of State Street Corporation (NYSE: STT), announced today that it is working with Apollo Global Management, Inc. (NYSE: APO), a leading provider of alternative assets and retirement solutions, and its affiliates (collectively, Apollo), to expand investor access to private market opportunities. "Private assets are one of the fastest growing sectors of the financial industry. We are excited to be working with Apollo, a global leader in alternative assets, to continue to increase accessibility to private markets, opening them to an even larger cross section of investors," said Ron O’Hanley, president and chief executive officer of State Street. 

State Street Global Advisors and Apollo Global Management Join Forces to Increase and Broaden Investor Access to Private Markets

Stripe, the FinTech giant, is reportedly in talks to acquire crypto startup Bridge for $1 billion, according to sources familiar with the discussions. This potential acquisition would be the largest to date for Stripe, which was recently valued at $70 billion. However, the deal is still under discussion and subject to regulatory considerations and compensation for employees. 
Bridge, a provider of infrastructure for crypto stablecoins, has previously raised $58 million in funding and has a strong customer base that includes government departments and companies like SpaceX and Coinbase. The startup offers software that enables businesses to accept cross-border payments made with stablecoins. 

Stripe Aims for Largest Acquisition Yet with $1 Billion Deal for Bridge

Growth in the payments industry, which was once characterized by rapid expansion, is now slowing as the shift from cash to digital payments has reached its peak, according to BCG research. The BCG Global Payments Report 2024 found that revenue growth is expected to halve by 2028, with global revenues set to rise at a compound annual growth rate of just 5% to $2.3 trillion. This marks a sharp decline from the 9% growth recorded in the previous five years, which saw revenues to $1.8 trillion in 2023.

Payments Industry Growth Slows as Cash-to-Digital Shift Reaches Peak

BlackRock has a handshake deal to buy private credit group HPS Investment Partners, the Financial Times reported on Wednesday. The final deal value would be closer to $12 billion, which offers a significant premium over HPS's post-IPO valuation of $10 billion, the report said, citing two sources familiar with the matter. The two sides have agreed on the broad outline of the deal with an eye towards announcing general terms after the U.S. Thanksgiving holiday, the report added, citing four people familiar with the matter.

BlackRock has deal to buy private credit manager HPS, FT reports

The ultra-rich run family offices, hire wealth managers and hold stakes in private investment funds. For those who are well-off but hardly jetsetters, however, portfolios look much more mundane. Typically, their largest asset is their home. Other holdings might include a 401(k), a few stocks, a bank account and a car. There’s nothing terrible about this sort of asset assortment. But, given that over the years we’ve seen a persistent pattern of the ultra-wealthy getting wealthier, it’s reasonable to think the bottom 99.9% might also benefit from the tools and investment vehicles the rich have at their disposal. 

Wealth Management Startups See Funding Rise

Recent and upcoming rate cuts will provide relief for private credit borrowers through lower funding costs in 2025, even as many have already benefitted from repricing and improving financing conditions. 

How This Will Shape 2025 
Repricing will continue to change market dynamics. Companies should see a bigger benefit from rate cuts in 2025 than this year. Competition and convergence between public and private markets will continue. With growth and innovations in private markets, some borrowers have the luxury of choice between broadly syndicated or private credit. 

Private Markets: How Will Private Credit Respond To Declining Yields?

Cross-border payments keep the world connected, fueling everything from international trade to daily transactions. However, in the rapidly developing world, traditional systems like SWIFT might find themselves outdated. They are starting to fall behind, stopped by delays, high costs, and inefficiencies. This results in less year-on-year growth. Due to inconveniences, they have gradually been replaced by blockchain, a revolutionary technology promising to shake up how money moves across borders. Think speed, transparency, security, and cost savings tools all into one—this is blockchain. Let’s dive deeper into this topic and consider why blockchain is leading this financial revolution.

Blockchain vs. SWIFT: Why Traditional Systems Can't Keep Up in the Global Economy

Finance and payments company Klarna says it has reduced hundreds of jobs and sees more reductions coming due to its implementation of AI. The Swedish company is using AI to handle customer queries with chatbots to drastically reduce the time taken to resolve issues. A buy-now-pay-later company, widely expected to seek a stock market listing next year, Klarna has been one of the early adopters of generative AI to cut costs and boost productivity.

Klarna uses AI to reduce employee numbers

 Inflation in the euro area rose from 1.7% to 2% in October, flash figures showed Thursday, coming in slightly higher than the 1.9% forecast. Core inflation and services inflation were both unchanged on the previous month. Markets currently expect the European Central Bank to cut interest rates by another 25 basis points in December, with one analyst saying the latest data would end debate over whether a larger 50-basis-point cut is warranted.

Euro zone inflation rises to higher-than-expected 2%, weakening case for jumbo rate cut

BlackRock’s Bitcoin exchange-traded fund (ETF) saw its largest-ever single-day outflow as Bitcoin funds notched a fourth straight trading day of outflows totaling more than $1.5 billion. BlackRock’s iShares Bitcoin Trust ETF (IBIT) hit $188.7 million in outflows on Dec. 24, surpassing its previous record of $72.7 million set on Dec. 20, per CoinGlass data. All 12 United States-based spot Bitcoin ETFs saw joint total outflows hit $338.4 million on Christmas Eve. Since Dec. 19, the funds have seen joint net outflows of $1.52 billion.

BlackRock’s Bitcoin ETF sees record outflow as funds bleed $1.5B in 4 days

The People’s Bank of China held the 1-year loan prime rate at 3.1%, and the 5-year LPR at 3.6%, according to the PBOC statement. The PBOC has ramped up measures lately to avoid a sharp fall in the currency that could spark excessive volatility while stressing the importance of FX stability. The central bank had surprised the markets by shaving the major short- and long-term lending rates in July, followed by a widely-anticipated 25-basis-point cut in October.

China keeps benchmark lending rates unchanged as it contends with a weakening yuan

Blackstone Group has put First Eagle Investment Management up for sale for more than $4bn in an attempt to offload a large stake that the US private equity group has owned for a decade. Blackstone and Corsair Capital, which acquired First Eagle for $4bn in 2015, have hired Morgan Stanley to lead the sale process, said people briefed on the matter. The two buyout groups are seeking to capitalise on a wave of takeover activity in the asset management sector as PE buyers and financial services firms pile into fee-based financial businesses. First Eagle generates about $500mn of annual earnings before interest, taxes, depreciation and amortisation, the people said. The business is expected to fetch a valuation of more than $4bn, they added. 

Blackstone puts First Eagle up for sale for $4bn

Fiserv’s leadership transition was over in less than two weeks last month, with the payment processor now run by two top executives after Chairman and CEO Frank Bisignano deemed his successor ready to lead after about 10 days at the company, Fiserv CFO Bob Hau told investors Tuesday. Fiserv President and CEO-elect Michael Lyons.  Michael Lyons, Fiserv’s president and CEO-elect and the former president of PNC Financial Services Group, joined a monthly Firserv management committee meeting on Jan. 27, his first day with the company, Hau said.

Fiserv CEO transition took only 10 days, CFO says

Melio, an accounts payable and receivable platform for small and medium businesses, has hit a $2 billion valuation in a $150 million strategic funding round led by Fiserv. Shopify Ventures, Capital One Ventures, Accel, Bessemer, Coatue, Frontline Ventures, General Catalyst, Latitude and Thrive Capital joined the Series E for New York-based Melio. The funding follows a ten-fold increase in revenue since the last $110 million round three years ago. Melio’s platform integrates cash flow management, accounts receivable and accounts payable solutions to help SMBs - and their accountants - maximise cash flow and save time managing their payment operations.

Fiserv leads $150m funding round for Melio

Decentralized exchanges (DEXs) set a record high in December, with monthly trading volume soaring to $462 billion, according to decentralized finance (DeFi) data platform DefiLlama. Data released on Dec. 30 showed that December was the highest-ever month for DEX volumes, continuing momentum from November. In November, the DeFi space saw a monthly volume of $374 billion, driven by anticipation of a more favorable regulatory regime in the United States following Donald Trump’s victory in the US presidential election. 

Decentralized exchange volume hits record high of $462B in December

Higher interest rates and lower consumer spending are squeezing debt-laden companies backed by private equity groups, forcing them to either restructure through bankruptcy or buy time to recover via out-of-court settlements with creditors. The stress on private equity-backed companies shows up starkest in a recent study by S&P Global Market Intelligence, which shows that a record number of 110 private equity and venture capital-backed companies filed for bankruptcy in 2024. 


‘Leveraged to the hilt’: PE-backed firms hit by wave of bankruptcies

The European Central Bank (ECB) is developing a new platform to settle transactions using distributed ledger technology (DLT) in central bank money, aiming to integrate and harmonise the European financial market for digital assets. The move is part of the ECB’s ongoing efforts to ensure that the financial sector can leverage the benefits of DLT while maintaining the stability and integrity of the monetary system. The initiative will follow a dual-track approach, with the immediate focus on developing an interoperability link with TARGET Services. These services facilitate the movement of cash, securities and collateral across Europe, playing a key role in the financial infrastructure.

European Central Bank Outlines Two-Track Approach to Enhance DLT Transaction Settlements

The People’s Bank of China kept the 1-year loan prime rate at 3.1% and the 5-year LPR at 3.6%, where they have been since a quarter-percentage-point cut in October. The rate decision follows the U.S. Federal Reserve’s move to hold benchmark interest rates.

China’s central bank follows U.S. Fed in keeping rates steady as tariff threats pressure yuan

Inflation has stayed within the bank’s target range since August 2024, and prompted the RBA to cut rates in February. The central bank said it was “cautious” about its outlook, pointing out that recent U.S. tariff announcements were affecting confidence globally. The Reserve Bank of Australia on Tuesday expectedly held its benchmark policy rate at 4.1%, despite having flagged earlier that inflation was declining at a faster pace than expected. The country’s inflation reading in February came in at a softer-than-expected 2.4%.

Australia central bank highlights global risks as it keeps rates steady at 4.1%

Japan’s inflation grew 3.6% year on year in March, marking three straight years that the headline inflation figure is above the Bank of Japan’s 2% target. The data release comes as Japan is locked in trade talks with the U.S., with U.S. President Donald Trump writing that “big progress” has been made.

Japan inflation comes in at 3.6%, surpasses BOJ target for three straight years

A week’s worth of inflation data showed that price pressures have eased substantially since their meteoric rise in 2021-22. Fed officials head into their two-day policy meeting Tuesday closer to their goal of low inflation, but how much they will ease interest rates remains an open question.  “The federal funds rate has been over 5%, has been there for over a year to fight inflation. That fight is won. They need to start getting out of the way,” economist Claudia Sahm said.

The Fed has the proof it wants that inflation is slowing, but the next move is still up in the air

Transak has received its second Money Transmitter License (MTL) from the US state of Delaware, while also gaining registration with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). The MTL will allow Delaware residents and businesses to use the cryptocurrency platform. Transaks first MTL came from the Alabama Securities commission and the company stated they intend to continue to expand across the US. 

Transak gains Delaware Money Transmitter License and FINTRAC registration

AltIndex’s report showed that this growth was driven by Bitcoin's rally, spot ETF approvals, increased DeFi activities, and regulatory clarity in key regions. Binance dominated the market by reportedly processing 40% of all crypto trades with $7.7 trillion in trading volume.The crypto market experienced a monumental performance in 2024. Boosted by major developments like regulatory clarity, Bitcoin spot ETF approvals, and DeFi innovations, the average monthly trading volume soared to $1.5 trillion, up a staggering 135% from last year, AltIndex reported.

Crypto Sees Second-Best Year Ever: 2024 Trading Hits $18.4 Trillion

Circle Internet, the US group behind the world’s second-largest stablecoin, has filed to list in New York, the first major cryptocurrency company to try for an initial public offering since President Donald Trump ushered in a more favourable environment towards digital assets. 
The firm lodged its application with regulators for an IPO on the New York Stock Exchange late on Tuesday, having filed initial paperwork at the start of last year, after a previous attempt fell through in late 2022.  Tuesday’s filing shows Circle’s revenues on the reserves it maintains to back its USDC stablecoin jumped to $1.66bn last year, from $1.4bn in 2023. 


Stablecoin operator Circle files for IPO as revenues jump to $1.7bn

Swiss banks say they have seen a surge of interest and business from high-net-worth Americans opening investment accounts in recent months. Switzerland’s neutral politics, stable economy, strong currency and reliable legal system are all a draw for clients. While opening a Swiss bank account decades ago may have carried a trace of elicit tax evasion, today it’s highly regulated and more widespread, complete with tax forms and reporting.

More rich Americans are opening Swiss bank accounts fearing U.S. risks

The majority of public pension funds and sovereign wealth funds (58%) expect to increase their infrastructure allocations over the next 12 to 24 months, according to the OMFIF’s Global Public Funds 2024 report. The Official Monetary and Financial Institutions Forum is a forum for central banking, economic policy and public investment. Twenty-eight global public funds with a combined $6.5 trillion in assets. This is up from 53% that had the same expectation in last year’s survey and 42% in 2022. 

Most global public funds plan to increase infrastructure allocations — OMFIF report

Process of shedding assets and draining bank reserves could collide with dynamics related to raising the federal debt limit. Federal Reserve officials made an adjustment on Wednesday to their policy of shrinking their $6.8 trillion in asset holdings. For the past three years, the Fed has been shrinking the portfolio of Treasurys and mortgage-backed securities that it accumulated during previous stimulus campaigns, including one to stabilize dysfunctional markets when the Covid-19 pandemic upended commerce in 2020. Now, it will slow down the pace of that runoff.

As Debt Ceiling Looms, the Fed Tweaks Its Portfolio Runoff

Hedge funds dumped stocks and lowered leveraged positions in Asian markets last week, data from Morgan Stanley shows, pointing to their defensive stance before U.S. President Donald Trump's announcement of new reciprocal tariffs on April 2. South Korea, onshore Chinese markets and Taiwan were at the fore of the sell-off, while hedge funds added short bets in Japan, Morgan Stanley said in a prime brokerage note this week. Trump is set to impose reciprocal duties on Wednesday that could lead to a sharp rise in tariff rates on several countries and upend the global trade system. 

HEDGE FLOW Hedge funds rush to cut Asia exposure ahead of US tariff announcement

China will sharply increase funding from ultra-long treasury bonds in 2025 to spur business investment and consumer-boosting initiatives, a state planner official said on Friday, as Beijing cranks up fiscal stimulus to revitalise the faltering economy. Special treasury bonds will be used to fund large-scale equipment upgrades and consumer goods trade-ins, said Yuan Da, deputy secretary-general of National Development and Reform Commission (NDRC) at a press conference. "The size of ultra-long special government bond funds will be sharply increased this year to intensify and expand the implementation of the two new initiatives," Yuan said. 

China will sharply increase funding from treasury bonds to spur growth in 2025

China expectedly kept its loan prime rates unchanged Monday, as strong macro data allows its central bank room to focus on stabilizing the yuan amid trade tensions with the U.S. The People’s Bank of China’s decision to keep the 1-year loan prime rate at 3.1% and the 5-year LPR at 3.6% comes as China reported better-than-expected economic data this month. The country’s first-quarter GDP rose 5.4% year on year, while retail sales and industrial output numbers for March also beat expectations of economists polled by Reuters.

China keeps key lending rates steady in bid to shore up yuan as macro data remains strong

Web3 technologies are poised to transform the world of commerce just as Web2 revolutionized access to information. The result will be a vast, open, liquid digital marketplace where all physical goods can be listed and traded seamlessly.In the early days of the internet, information was siloed within proprietary networks. Over time, the zero marginal cost of distribution, combined with consumer demand for accessibility, led to the open, searchable internet we enjoy today. Commerce, however, has been slower to evolve due to inherent complexities. Unlike information, physical assets require trust between parties, the ability to mediate disputes and reliable settlement mechanisms. 

How AI Agents and Crypto Will Revolutionize Commerce

Bitcoin would be a big winner from a potential US recession as it’s built to thrive in a high fiscal spending, low interest rate environment, says a BlackRock executive. BlackRock’s head of digital assets, Robbie Mitchnick, says that Bitcoin will most likely thrive in a recessionary macro environment, contrary to what some analysts may think. “I don’t know if we’ll have a recession or not, but a recession would be a big catalyst for Bitcoin,” Mitchnick said in a March 19 interview with Yahoo Finance. Mitchnick said Bitcoin  is catalyzed by increased fiscal spending, deficit accumulation, lower interest rates and monetary stimulus — all of which tend to happen in recessions.

US recession would be a big catalyst for Bitcoin: BlackRock

European stock markets continued to tumble on Friday, with investors still reeling from the scale of U.S. tariffs announced this week. The regional Stoxx 600 index was down 4.4% at 1:04 p.m. in London, with banks down 8.2% after Thursday’s 5.53% plunge. The sector is seen as vulnerable to a slowdown in growth or a recession, now viewed as a much stronger possibility both for the U.S. and the global economy. Bank of America strategists said Friday that banks were also “among the assets least advanced in pricing global macro trouble.”

European shares plummet after China slaps retaliatory tariffs on U.S.; Defense stocks fall as NATO chief touts regional security splurge

Chicago Fed President Austan Goolsbee said Sunday that President Donald Trump’s tariffs are causing U.S. business owners to stock up on inventories. “Preemptive purchasing” by businesses, as well as consumers, of big-ticket items at pre-tariff prices may cause an “artificially high” level of economic activity, the central banker said. The temporary bump could be followed by a corresponding drop-off in the summer, Goolsbee said.

Trump tariffs could lead to a summer drop-off in economic activity after an ‘artificially high’ start, Chicago Fed chief says

There was nowhere to run this week for investors seeking to escape a market rout that came on like a tidal wave, crashing down Thursday. Tariffs, of course, dominated, and once they were real, as of Wednesday night, the stage was set for a plunge Thursday that’s not been seen in years. Investors fled the digital platforms and the buy now, pay later (BNPL) players — many of them international in scope, and dependent on growth in lending or consumer spending. And within the FinTech IPO Index, which sank more than 11%, not a single name was in the black.

FinTech IPO Index Plunges 11.7% Amid Broad-Based Market Rout

Uncertainty about U.S. policymaking has led to a flight out of the U.S. dollar and Treasurys, with the dollar index weakening more than 9% so far this year, and analysts see more declines. 
The drop in the greenback has led other currencies to appreciate against it, especially safe havens such as the Japanese yen, the Swiss franc as well as the euro. Currency devaluation is likely to be more of an active consideration across emerging markets, particularly in Asia, said Nick Rees, head of macro research at Monex Europe. “Emerging markets face high inflation, debt, and capital flight risks, making devaluation dangerous,” said Wael Makarem, financial markets strategists lead at Exness.

As the dollar falters, the world’s central banks tread a tightrope — devalue their currency or not

The US Department of Justice (DOJ) has filed a civil antitrust lawsuit against Visa over allegations of “monopolisation and other unlawful conduct in debit network markets in violation of Sections 1 and 2 of the Sherman Act”. In a press release announcing the lawsuit on 24 September, the DOJ says: “Filed in the US District Court for the Southern District of New York, the complaint alleges that Visa illegally maintains a monopoly over debit network markets by using its dominance to thwart the growth of its existing competitors and prevent others from developing new and innovative alternatives.”

US Department of Justice files civil antitrust lawsuit against Visa

The National Center for Public Policy Research — a Washington DC-based think tank championing free markets — submitted a shareholder proposal to Amazon saying that a Bitcoin corporate treasury strategy should be considered at the April 2025 shareholder meeting.
According to the proposal, the Consumer Price Index (CPI) used to measure inflation, which currently puts inflation at 4.95%, is a “remarkably poor measure” of true currency debasement. The authors suggested the true inflation rate may be double the reported CPI figure. This greatly erodes Amazon’s $88 billion in cash and short-term cash equivalents, the letter said, and to protect shareholder value, Bitcoin should be used to hedge against this risk. 

National Center for Public Policy Research proposes BTC treasury to Amazon

Citrin Cooperman Advisors LLC (the "Firm"), a premier tax, advisory and accounting provider for private middle market businesses and high net worth individuals, today announced a definitive agreement for a significant investment from private equity funds managed by Blackstone ("Blackstone"). As part of the transaction, Blackstone is acquiring its stake in the Firm from New Mountain Capital LLC ("New Mountain").  Citrin Cooperman was founded in 1979 with a mission to enhance the businesses and personal lives of its clients, partners, and staff through its services, guidance and enthusiasm for building long-standing relationships. 

Citrin Cooperman, a Leading Professional Services Firm, to Receive Significant Investment as Blackstone Acquires Stake from New Mountain Capital

State Street Global Advisors' much-anticipated private credit exchange-traded fund, developed with alternative investment firm Apollo Global Management, began trading on the New York Stock Exchange on Thursday. The SPDR SSGA Apollo IG Public & Private Credit ETF is the first product offering retail investors direct access to a diversified portfolio of private credit assets.

State Street launches Apollo private credit ETF

China lashed back at President Trump’s tariffs, applying 34% levies on all imported goods from the U.S. Beijing said the levies would come into effect next Thursday, the day after a big part of Trump’s promised tariffs go live. The market selloff continued Friday, with the China retaliation and recession fears pushing investors to sell stocks and hide in the safety of government bonds.
Markets took little comfort from President Trump's willingness to negotiate over the tariffs. The levies announced late Wednesday were deeper and more aggressive than the business world expected. And even as Trump left the door open to making deals, he vowed new tariffs on drugs and microchips.

Dow Opens Sharply Lower, Bonds Rally After China Retaliates Against Trump Tariffs

A leading economist contends a recession is now more likely than not due to the Trump administration’s trade wars, and that the U.S. could suffer the biggest “stagflationary” shock in decades. “We may get recession, we may not, but we are going to get inflation either way,” said Adam Posen, a former official at both the Federal Reserve and the Bank of England, in a speech this week. The influential Posen, now the president of the Peterson Institute for International Economics, put the odds of recession at 65%.

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