2025-06-17 16:42

LONDON, June 17 (Reuters) - Spanish lender BBVA (BBVA.MC) , opens new tab is advising wealthy clients to invest up to 7% of their portfolio into cryptocurrencies, an executive said on Tuesday, in the latest sign some banks are warming to a sector long avoided by mainstream finance because of its risks. BBVA's private bank advises clients to invest 3% to 7% of their portfolio in cryptocurrencies depending on their risk appetite, Philippe Meyer, head of digital & blockchain solutions at BBVA Switzerland, told the DigiAssets conference in London. Sign up here. "With private customers, since September last year, we started advising on bitcoin," Meyer said. "The riskier profile, we allow up to 7% of (portfolios in) crypto." Cryptocurrency prices have surged in recent years, with bitcoin hitting another record high in May. That follows a recovery from lows hit in 2022 when a series of top exchanges, including FTX, collapsed, leaving millions of investors out of pocket. Their rebound has been helped by U.S. President Donald Trump's pro-crypto stance. While many private banks execute client requests to buy cryptocurrencies, it is relatively unusual for them to advise them to actively buy them. Regulators continue to warn about the risks of cryptocurrencies, saying investors should expect to lose all their money. The European Securities and Markets Authority said earlier this year that 95% of EU banks do not engage in crypto activities. Speaking to Reuters on the sidelines of the event, Meyer told Reuters he believed BBVA was one of the first large global banks to advise its wealthy clients to buy cryptocurrencies. It had been executing on client requests to buy them since 2021, he said. The 3-7% advice currently applies to bitcoin and ether, but BBVA plans to expand the advice to other cryptocurrencies later this year, he said. Meyer said that clients had been receptive so far to the advice, and dismissed concerns the asset was too risky. "If you look at a balanced portfolio, if you introduce 3% you already boost the performance," Meyer said. "At 3% you are not taking a huge risk." https://www.reuters.com/business/finance/spanish-bank-bbva-tells-wealthy-clients-invest-bitcoin-2025-06-17/

2025-06-17 15:44

NEW YORK, June 17 (Reuters) - U.S. Senate Republicans' proposed changes to President Donald Trump's sweeping tax-cut and spending bill are expected to push U.S. debt levels higher, roughly in line with projections from the House-passed version, analysts said on Tuesday. Senate Republicans on Monday unveiled proposed changes to the bill the House of Representatives passed last month. The proposals, subject to ongoing negotiations, would make some business-related tax breaks permanent while making the deduction for state and local income taxes more limited. Sign up here. "The fiscal effects of the Senate’s legislation as it currently stands look likely to be similar over the next few years to what the House passed," Alec Phillips, an analyst at Goldman Sachs, wrote in a note on Tuesday. The proposals will likely add "at least a few hundred billion dollars" to the estimated 10-year cost of the legislation, he added. The House-passed legislation would add $2.4 trillion to U.S. government debt over the next 10 years, or $3 trillion if interest costs are taken into account, the nonpartisan Committee for a Responsible Federal Budget estimated earlier this month. The cost would reach $5 trillion over a decade if policymakers extend temporary provisions, the committee has said. No formal cost estimates by the Joint Committee on Taxation, a nonpartisan committee of the U.S. Congress, and by the nonpartisan Congressional Budget Office have been released since the Senate proposals. Concerns over the fiscal impact of the bill have been a key driver of the U.S. bond market in recent weeks, as a meaningful increase to the $36 trillion U.S. debt pile could push Treasury yields higher due to more sizeable government debt sales. "A key contributor to the bond-bearish narrative at the moment is the GOP’s (Grand Old Party) budget bill," BMO Capital Markets analysts said in a note on Tuesday. The core of the bill remains similar, they said, as it would extend the bulk of 2017 tax cuts expiring at the end of this year and eliminate taxes on Social Security, overtime and tips. "At the end of the day, there will still be a significant increase in the deficit that the Treasury Department will be tasked with funding," the BMO analysts said. https://www.reuters.com/world/us/senate-tweaks-trump-tax-bill-seen-adding-us-debt-line-with-house-plan-2025-06-17/

2025-06-17 14:46

July 14 (Reuters) - The crypto industry could move closer to the financial mainstream this week as several bills are set to make headway in the U.S. Congress, potentially spurring many companies to issue their own stablecoins. The House of Representatives is expected to debate a slate of crypto-related legislation during what the Republican majority has labeled "crypto week." The most prominent is a bill that would create a regulatory framework for stablecoins and is likely to advance to President Donald Trump's desk. Sign up here. If signed into law, stablecoins would be required to be backed by liquid assets — such as U.S. dollars and short-term Treasury bills — and issuers would have to publicly disclose the composition of their reserves on a monthly basis. Here is an overview of major companies globally that have launched, or are considering launching, their own stablecoins: FISERV (FI.N) , opens new tab: In June, the financial technology firm unveiled plans to launch a stablecoin. The company said its stablecoin, FIUSD, will be integrated into its existing banking and payments infrastructure by year-end. It added that FIUSD will rely on stablecoin infrastructure provided by Paxos and Circle. MAJOR U.S. BANKS: Big U.S. banks are holding internal discussions about expanding into cryptocurrencies as they get stronger endorsements from regulators, but initial steps will be tentative, centering on pilot programs, partnerships or limited crypto trading, Reuters reported in May. Bank of America (BAC.N) , opens new tab could launch stablecoins, its CEO Brian Moynihan said earlier this year, while Morgan Stanley (MS.N) , opens new tab wants to work with regulators to see how it can be a middleman for crypto-related transactions, CEO Ted Pick said earlier this year. BofA declined to comment, while Morgan Stanley did not respond to Reuters' request for comment. SOCIETE GENERALE (SOGN.PA) , opens new tab: The French bank said in June it plans to launch a publicly tradable, dollar-backed stablecoin through its digital asset subsidiary. WALMART (WMT.N) , opens new tab AND AMAZON (AMZN.O) , opens new tab: The U.S. retail giants have recently explored , opens new tab issuing their own stablecoins, the Wall Street Journal reported in June, citing people familiar with the matter. "We are not piloting any programs and do not currently have any plans in place to issue our own stablecoin," Walmart told Reuters, adding that the retailer has not taken a public position on the GENIUS bill. Amazon did not respond to a Reuters request for comment. BANCO SANTANDER SA (SAN.MC) , opens new tab: The Spanish bank is mulling an expansion in digital assets, including early-stage plans to offer a stablecoin, Bloomberg News reported , opens new tab in May, citing people with knowledge of the matter. The bank declined to comment on the matter, when contacted by Reuters. WORLD LIBERTY FINANCIAL: U.S. President Donald Trump's World Liberty Financial crypto venture launched a dollar-pegged stablecoin this year, called USD1. The token has a market value of roughly $2.2 billion, according to CoinGecko. PAYPAL (PYPL.O) , opens new tab: The payments giant launched a U.S. dollar stablecoin in August 2023, becoming the first major financial technology firm at the time to embrace digital currencies for payments and transfers. CIRCLE INTERNET (CRCL.N) , opens new tab: The newly public company launched its flagship USDC stablecoin in 2018. It is now one of the largest stablecoins by market value, with a market cap of around $63.4 billion, according to CoinGecko. PAXOS: The crypto-native company issues the Global Dollar stablecoin (USDG) and the Pax Dollar (USDP), both pegged 1:1 to the U.S. dollar. The company also issues the BUSD token in partnership with Binance, the world's largest crypto exchange by trading volume. TETHER: The crypto company issues an eponymous stablecoin, which is the world's largest by market value, according to CoinMarketCap. The USDT token, with a market cap of over $159.5 billion, is pegged to the U.S. dollar. MAKERDAO: The company issues the DAI stablecoin, which has a market value of roughly $1.62 billion and is the fourth largest globally, according to CoinMarketCap data. https://www.reuters.com/business/finance/stablecoins-gain-ground-with-corporates-us-legislation-takes-shape-2025-06-17/

2025-06-17 12:43

June 17 (Reuters) - India's power market regulator on Tuesday proposed amending its electricity trading rules to introduce Virtual Power Purchase Agreement (VPPA), a new financial instrument aimed at helping consumers meet renewable energy obligations and trade power. The Central Electricity Regulatory Commission's (CERC) draft proposal formally recognizes VPPAs as over-the-counter (OTC) contracts that will help large industrial buyers meet clean energy targets without taking physical delivery. Sign up here. Under the draft Power Market Regulations, 2025, a VPPA allows a consumer to agree on a fixed price with a renewable energy generator, who then sells the electricity in the open market. The difference between the agreed VPPA price and the actual market price is settled financially between the two parties. While the VPPAs offer an innovative pathway for large consumers to meet their renewable consumption obligations, they risk becoming a mere compliance mechanism, enabling consumers to claim 100% renewable usage, Ember analysts said , opens new tab early this month. Indian exchanges, National Stock Exchange (NSEI.NS) , opens new tab and Multi Commodity Exchange of India (MCX) (MCEI.NS) , opens new tab last week announced that they will launch power derivative contracts. The draft regulation also proposes to enhance CERC's powers to inspect and audit power exchanges and OTC platforms. CERC has invited public comments on the draft until July 14 before finalizing the regulation. https://www.reuters.com/sustainability/climate-energy/india-proposes-virtual-power-agreements-boost-renewable-energy-trading-power-2025-06-17/

2025-06-17 12:28

LONDON, June 17 (Reuters) - Sterling was lower against the dollar on Tuesday as market focus stayed on developments in the Middle East, while traders await a closely-watched UK inflation print due on Wednesday and a Bank of England (BoE) interest rate decision due on Thursday. The pound was a fraction lower on the dollar at $1.3527 and also softer against the euro at 85.27 pence to the common currency. . Sign up here. In UK news, U.S. President Donald Trump on Monday signed an agreement formally lowering some tariffs on imports from Britain as the countries continue working toward a formal trade deal. The deal reaffirmed quotas and tariff rates on British automobiles and eliminated tariffs on the U.K. aerospace sector, but the issue of steel and aluminium remains unresolved. "I don't think the trade deal will change anything, the 10% tariffs remain in place and they only looked at traded goods that are not traded that much between the countries," said Michael Pfister, FX analyst at Commerzbank. The pound is up 8.5% versus the dollar so far this year, but 3% lower versus the euro. Pfister said weaker-than-expected economic data has weighed on euro/sterling since the beginning of June. Since then sterling is down about 1%, despite the UK being the only country to strike a trade deal with the U.S. Wednesday will see the latest UK inflation figures for May hit the wire. "UK inflation is expected to fall ever so slightly in May to 3.4%, a minor but welcome move in the right direction," Michael Field, chief equity strategist at Morningstar. He said current elevated inflation levels are likely to be transitory, with the U.S.-UK trade deal also expected to mitigate risk. Money markets expect the BoE to hold rates steady at 4.25% on Thursday and see about two more 25 bps rate cuts by December . https://www.reuters.com/world/uk/sterling-slips-versus-dollar-inflation-print-boe-meeting-eyed-2025-06-17/

2025-06-17 12:25

Global aviation sector strives for net zero emissions by 2050 Sustainable aviation fuel made from ethanol seen as one option Brazil ethanol producers fear US interference in UN's SAF rules MONTREAL/SAO PAULO June 17 (Rtrs) - The U.S. is expected to object this month to a recommendation at the UN aviation agency council that Washington says unfairly favors Brazilian corn farmers at the expense of U.S. producers in development of green jet fuel, two sources familiar with the matter told Reuters. One of the sources said the discussions could be resolved by a compromise. Still, Brazil's corn ethanol producers have warned that the disagreement could undermine global confidence in certification of sustainable aviation fuels. Sign up here. Global carriers, aiming for net zero emissions by 2050, are being pressed to swap kerosene for cleaner but costly alternatives made from materials such as municipal waste or cooking oil. The International Air Transport Association estimates the long-term cost of the aviation sector's green transition at $4.7 trillion. Global SAF now accounts for less than 1% of industry’s total jet fuel usage. But products that can make fuel with lower emissions should find growing markets due to European quotas at airports, tax incentives and global targets. With U.S. corn production outpacing domestic demand, farmers and ethanol producers in the Midwest have said they are trying to lower the emissions involved in producing and marketing corn ethanol for new markets like green jet fuel. For instance, some U.S. ethanol producers have suggested using carbon capture technology. The Iowa Corn Growers Association, which supports carbon capture and sequestration projects to lower emissions, has said Brazil already has a lower carbon score for corn ethanol than the U.S., which would give the South American country an advantage in meeting demand from airlines. The U.S. State Department raised objections in March , opens new tab to a recommendation from an International Civil Aviation Organization (ICAO) technical panel, which has proposed criteria for SAF. The U.S. argued that the recommendation unfairly helps Brazil over the rest of the world as it would award a lower carbon score to multicropping, or farming when two or more crops like corn and soy are grown on the same land, a common practice in the South American nation. The recommendation is coming to ICAO's 36-member council for review ahead of the global agency's triennial assembly this fall. ICAO cannot impose rules on member states, but countries that approve the agency's standards and guidance usually abide by them. The U.S. State Department declined comment. Brazil’s agricultural ministry acknowledged it received questions from Reuters but did not respond further. Montreal-based ICAO was not immediately available for comment. In Brazil, where annual corn ethanol output is forecast to almost double to around 16 billion litres by 2032, the producers’ association UNEM told Reuters that recommendations from ICAO’s Committee on Aviation Environmental Protection (CAEP) should be free from politics. "Any attempt at political interference would undermine not only the decision-making process, but also the international community’s confidence in the sustainable aviation fuels certification system," said Bruno Alves, director of institutional relations and sustainability at UNEM. "UNEM believes it is essential that this technical and transparent process be respected and preserved. Attempts to delegitimize or politicize the results would be extremely serious." https://www.reuters.com/sustainability/climate-energy/us-set-object-green-jet-fuel-recommendation-un-aviation-council-sources-say-2025-06-17/