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    Pakistan rice exports hit record following Indian sales ban

    Standard DigitalWeekend Print + Standard Digitalwasnow $75 per monthComplete digital access to quality FT journalism with expert analysis from industry leaders. Pay a year upfront and save 20%.What’s included Global news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts20 monthly gift articles to shareLex: FT’s flagship investment column15+ Premium newsletters by leading expertsFT Digital Edition: our digitised print editionWeekday Print EditionFT WeekendFT Digital EditionGlobal news & analysisExpert opinionSpecial featuresExclusive FT analysisFT Digital EditionGlobal news & analysisExpert opinionSpecial featuresExclusive FT analysisGlobal news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts10 monthly gift articles to shareGlobal news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts20 monthly gift articles to shareLex: FT’s flagship investment column15+ Premium newsletters by leading expertsFT Digital Edition: our digitised print editionEverything in PrintWeekday Print EditionFT WeekendFT Digital EditionGlobal news & analysisExpert opinionSpecial featuresExclusive FT analysisPlusEverything in Premium DigitalEverything in Standard DigitalGlobal news & analysisExpert opinionSpecial featuresFirstFT newsletterVideos & PodcastsFT App on Android & iOSFT Edit app10 gift articles per monthExclusive FT analysisPremium newslettersFT Digital Edition10 additional gift articles per monthMake and share highlightsFT WorkspaceMarkets data widgetSubscription ManagerWorkflow integrationsOccasional readers go freeVolume discountFT Weekend Print deliveryPlusEverything in Standard DigitalFT Weekend Print deliveryPlusEverything in Premium Digital More

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    French election worries rekindle market memories of UK budget rout

    (Reuters) -As the far right and leftist parties gain momentum ahead of France’s surprise parliamentary election, pressuring President Emmanuel Macron’s centrist administration, investors are starting to contemplate the risk of a budget crisis at the heart of the euro area. Marine Le Pen’s far-right National Rally party (RN) is leading in opinion polls ahead of the ballot called by Macron for June 30 and July 7, albeit unlikely to win an absolute majority. Although it has not yet announced its detailed programme, the RN has previously favoured lowering the retirement age, tax cuts and boosting spending. That has exacerbated concerns about fiscal sustainability in the euro zone’s second largest economy just weeks after France’s high deficit led to a credit rating cut.A newly formed leftist alliance meanwhile said on Friday it wanted to lower the retirement age and tie salaries to inflation, adding to expectations for higher spending under a new government. An opinion poll on Wednesday showed the leftist parties coming second behind the RN.Investor reaction was blunt: the risk premium they demand to hold French government bonds over euro zone benchmark Germany rose to the highest since 2017 on Friday at almost 82 basis points, its biggest weekly jump since 2011’s euro zone debt crisis.”Today the focus has shifted back to the scope for some kind of near term crisis,” said Gordon Shannon, portfolio manager at TwentyFour Asset Management. “You’re pricing the risk that you have an event similar to the UK’s mini budget,” he said, referring to then UK Prime Minister Liz Truss’ mini-budget of unfunded tax cuts in 2022 that pummeled gilts and forced the Bank of England to step in to stabilise markets. Finance Minister Bruno Le Maire, urging voters to back Macron’s centrist candidates, warned on Friday of the risk of a financial crisis if either the far right or the left wins the election. The cost of insuring France’s debt against default jumped on Friday to its highest level since May 2020, while the spillover of rising borrowing costs has knocked banks.Shares in the country’s biggest three – BNP Paribas (OTC:BNPQY), Credit Agricole (OTC:CRARY) and Societe Generale (OTC:SCGLY) – have lost between 12-16% this week, the most since March 2023’s banking crisis. All were down at least 4% on Friday.Demonstrating how market ructions are already hitting funding plans, a French state-backed agency cancelled a bond sale and France’s treasury plans to raise a smaller amount than usual at a bond auction next week. EURO ZONE RECKONING?Bond investors are often dubbed vigilantes by analysts for demanding higher returns from governments they perceive as fiscally reckless.    “We’ve already had a stress test in the UK with the mini budget and we had a bit last summer in the U.S. when Treasury yields rose sharply after the Treasury refunding announcement,” said Guillermo Felices, global investment strategist at PGIM Fixed Income.    “We haven’t had this yet in the euro zone.”The Institut Montaigne think tank has looked at the RN’s programme for the 2022 parliamentary election, saying it would cost more than 100 billion euros — suggesting a 3.5 percentage-point increase in France’s budget deficit — if fully enacted. That’s much higher than estimates for Truss’s tax cuts. RN President Jordan Bardella said on Friday that the party would detail its platform in the coming days and how it would be financed. It has so far been vague about where it stands on fiscal responsibility other than blaming the outgoing government for straining the public finances.”In an extreme case, the risks could include a Liz-Truss-style blowout in yield spreads,” Holger Schmieding, chief economist at private bank Berenberg, said earlier this week.Britain’s 10-year yield jumped over 100 bps in less than a week during its budget crisis, while France’s is just up 6 bps this week. There were some early signs that concern over France might spread in the euro zone.Italy’s closely-watched risk premium over Germany rose to the highest since February at 159 bps on Friday.Italy last year posted the highest budget deficit-to-GDP ratio in the European Union, at 7.4% of output. Together with France it is expected to face a European Union excessive deficit procedure requiring it to reduce its structural deficit.The euro hit a 1-1/2-month low against the dollar on Friday and euro zone bank stocks are down almost 10% this week. The bloc’s financial architecture is seen as much stronger than its debt crisis over a decade ago, with the European Central Bank repeatedly showing it will step in with new tools to stabilise markets at times of crisis.However Swiss Re (OTC:SSREY)’s head of macro strategy Patrick Saner noted that the ECB’s backstop tool to buy government bonds if warranted requires compliance with EU fiscal rules for eligibility.”That can create some doubts around ECB support,” he said.Others said it had yet to be seen how a potential government in France that included the RN would act in office. Italy’s debt outperformed last year, helped by far right Prime Minister Giorgia Meloni moderating her tone in office. Iain Stealey, international chief investment officer for fixed income at JPMorgan Asset Management, said the RN’s spending plans would be curbed by the EU’s deficit rules.”The market will also be a key force in keeping National Rally in check, with the party likely to take a more prudent fiscal stance ahead of the 2027 presidential election,” he added. More

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    Bitcoin (BTC) Godzilla Statement Issued by Michael Saylor

    Speaking at the BTC Prague event, Saylor emphasized Bitcoin’s growing adoption and extraordinary performance as key factors in this transformation.He stated, “All your models will be destroyed, your political models, everything we learned over 10,000 years.”The MicroStrategy chairman criticized modern statisticians who attempt to make financial projections using outdated methods. He compared them to medieval warriors using bows, arrows, chariots and elephants in a battle against an adversary equipped with explosives, aircraft and other advanced weaponry.In Saylor’s view, Bitcoin represents this sophisticated and disruptive force in the financial sector. According to him, the current financial system stands no fighting chance to resist the impending change that is certain to occur.Saylor has consistently advocated that investors explore Bitcoin by adopting a disciplined approach to investment. While highlighting the pros, the MicroStrategy chairman warns against the pitfalls of trying to time the market or making large, speculative bets.In a recent post on X after Bitcoin surged to $71,000, Saylor, using an AI-generated photo of a bee inside a beehive with a Bitcoin mascot inside it, urged investors to “Join the Swarm.” It is a subtle reference to aligning with the rapidly growing global community of BTC believers and holders.This article was originally published on U.Today More

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    Italy’s Meloni shows her arch-conservative credentials at G7 summit

    BARI, Italy (Reuters) – Since taking office in 2022, Italian Prime Minister Giorgia Meloni has proved a pragmatic partner on major international issues, assuaging fears she would be a dogmatic conservative unwilling to compromise.But at the Group of Seven summit that she hosted in southern Italy this week, Meloni showed she had some red lines dear to her nationalist camp that she was ready to fight for, especially issues relating to the family and reproduction rights.In the build-up to the June 13-15 summit, attention had been firmly focused on securing a deal on a multibillion-dollar loan for Ukraine, using frozen Russian assets, and creating ways to level the playing field in trade with China.Broad consensus was found on both issues and hailed as proof of Western unity in the face of global challenges.Then, out of the blue, diplomats revealed that Italy had demanded the removal of specific reference to “safe and legal abortion” from the final G7 statement and also wanted to water down language on vaccination funding.Despite being isolated, Meloni largely got her way on both issues, using Italy’s position as rotating president of the wealthy nation club to lead the negotiations where it wanted, diplomats who followed the discussions told Reuters.”Meloni is against abortion and always has been, so that was her red line and honestly we pushed early on. But when the presidency said ‘no’ that was that,” said a European diplomat, speaking on condition of anonymity.Like many arch-conservative groups in Europe and the United States, Meloni’s Brothers of Italy party is opposed to abortions and calls for the promotion of traditional family values.”She has thrown a bit of red meat to her supporters,” said Daniele Albertazzi, politics professor at Britain’s Surrey University and an expert in political populism.”She wants to stress that she is not on the same page as some progressive leaders on these sort of issues because this is part of her identity and it has been diluted since she became prime minister,” he added.FRENCH REGRETFrench President Emmanuel Macron, a centrist who has clashed with Meloni in the past over social concerns, including migration, told reporters at the summit that he regretted the fact there was no longer specific reference to “abortion”.Meloni shrugged off the dispute, arguing on Saturday that this week’s statement made it clear that the G7 continued to support the aims of its Hiroshima declaration, which backed access to abortion, meaning it was redundant to repeat the previous text.”I sincerely believe that the controversy was totally contrived,” she told reporters, adding that she had no intention of outlawing abortion in Italy. However, signalling that there had been genuine discomfort over Italy’s position, a senior U.S. official said President Joe Biden had objected to an initial draft that removed reference to abortion and made no mention of Hiroshima.A senior White House official later said Biden fully supported the final wording of the 2024 communique. “He felt strongly about the language that made it through,” he said.Pope Francis, an outspoken opponent of abortion, was a guest at the G7 summit and Italy’s Agriculture Minister Francesco Lollobrigida, who is Meloni’s brother-in-law, said this week it would not have been appropriate to talk about pregnancy terminations in the statement given his presence at the meeting.A European diplomat, who declined to be named, said that during discussions on whether or not to use the word, an Italian counterpart had told fellow negotiators: “the pope will never accept it”. They then corrected themselves to say: “Oh, I mean, my prime minister will never accept it”, the diplomat said.Italian officials did not immediately comment on this.While Meloni’s objection to abortion has long been known, the move to water down the language on vaccinations came as more of a surprise.Italy removed a line included in the 2023 communique which called for “investment in global health through vaccine manufacturing capacity worldwide”. This year, there was just a reference to “regional vaccines manufacturing initiatives”. Vaccine scepticism has embedded itself in conservative camps both in the United States and Europe.While Meloni herself did not endorse no-vax campaigners during the COVID pandemic, her party opposed many of the tough COVID regulations imposed at the time, which required Italians to be vaccinated in order to go to work, use public transport, or enter shops and restaurants.”She’s not anti-vax, but she’s partially anti-vax,” said one of the European diplomats who followed the negotiations. Meloni’s office declined to comment. More

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    Brazil’s Lula stands by finance minister but rejects spending cuts targeting the poor

    Speaking at a press conference on the sidelines of the Group of Seven (G7) summit in Italy, leftist Lula said unnecessary spending should be avoided amid growing pressure from investors for the government to reduce expenditures and balance public accounts.”Haddad will never be weakened as long as I am president because he is my finance minister, chosen by me and kept by me,” he said. “If Haddad has a proposal, he will seek me out this week to discuss the economy. I want to make it clear that we are not going to make adjustments on the backs of the poor.”His remarks came after Haddad said he was focused on intensifying the spending cuts agenda, citing areas like excessive public salaries and unlawful benefits. The Senate’s rejection of a contested revenue-raising measure earlier this week had caused market prices to plummet amid growing concerns that Haddad was losing influence in his position.Lula also said the media frequently mentions Brazil’s fiscal deficit, but no one talks about high interest rates “in a country with 4% inflation.””On the contrary, they celebrate with the central bank chief in Sao Paulo. Again, those attending the celebration must be profiting from the interest rate,” he said.Central bank chief Roberto Campos Neto, appointed by former President Jair Bolsonaro, was honored on Monday at the Sao Paulo State Legislature and later attended a dinner hosted by state governor Tarcisio de Freitas, who is viewed as a potential right-wing candidate for the 2026 presidential race.Since August, Brazilian interest rates have fallen by 325 basis points to 10.50% while annual inflation reached 3.93% in May, compared with the 3% official target. The next rate-setting meeting will take place on June 18-19. More

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    Scam Alert: Binance Co-Founder Targeted in Twitter Impersonation Scheme

    Binance co-founder Yi He has issued a disclaimer against an impersonator using her identity to scam unsuspecting users on the social media platform X. Yi He denied having issued any new memecoins and called on the platform owner, Elon Musk, to ask if there is any way to address the issue from his end.Yi He warned the public that clicking on the impersonator’s link could lead to users’ money being stolen. She noted the hacker had already tricked many people, leading to significant financial losses.Ms. He made an earlier post alerting the public after she noticed a fake account impersonating her X identity. She highlighted someone clicking the link provided by the impersonator and got scammed of 60 ETH.The Binance co-founder reaffirmed that her only X account is with the handle @heyibinance and BNB is the only token she endorsed.He shared screenshots from the impostor, alongside a couple of X accounts, attempting to impersonate her with handles reflecting modifications of her identity. She warned users to stay alert to such fake accounts and report them to X to prevent others from being scammed.Binance, the cryptocurrency exchange, has also stepped in with support for its co-founder. The crypto exchange urged users to be cautious with information they encounter online. Binance stressed the importance of avoiding unverified links and/or QR codes advising users to double-check information through official channels before engagement.The recent incident underscores the prevalent craftiness of online scammers in using the reputation of notable figures to deceive users. It goes without saying that crypto aficionados need to safeguard their digital assets through proper scrutiny.The post Scam Alert: Binance Co-Founder Targeted in Twitter Impersonation Scheme appeared first on Coin Edition.See original on CoinEdition More

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    New York’s AG Takes on Crypto: Gemini’s $50 Million Lesson

    New York Attorney General Letitia James has secured a $50 million settlement from Gemini Trust Company, LLC (Gemini) to compensate over 230,000 investors, including 29,000 New Yorkers, who were allegedly misled by Gemini’s Earn program. The program, promising secure returns, failed to disclose significant financial risks associated with partner firm Genesis.Gemini’s Earn program lured investors by promising to grow their money, but internal reviews showed that Genesis’s finances were unstable. Gemini was aware that Genesis’s loans lacked adequate protection and were mostly tied up with entities like Sam Bankman-Fried’s Alameda. However, Gemini did not disclose this to investors.When the investment scheme collapsed, many investors struggled to recover their funds. The Attorney General’s office investigated these claims and found compelling evidence that Gemini misled investors.The settlement ensures that all affected investors will receive full reimbursement of their digital assets automatically, without having to take any action. These assets will be available in their accounts.Attorney General James emphasized the severity of the situation, stating:The settlement resolves claims against Gemini and prohibits the company from operating any cryptocurrency lending programs in New York. Moreover, Gemini must cooperate with the OAG’s ongoing litigation against Digital Currency Group (DCG), DCG’s CEO Barry Silbert, and Genesis’s former CEO Soichiro Moro.In October 2023, Attorney General James filed a lawsuit against Gemini for falsely promoting the Earn program as a secure investment. The investigation found that Gemini knew about Genesis’s financial weaknesses yet told investors the program was safe. This lawsuit was part of a broader effort to ensure accountability for dishonest cryptocurrency companies.Attorney General James has led efforts to protect investors and regulate the cryptocurrency industry. Recently, she settled for $2 billion with Genesis, addressed fraud by AWS Mining and NovaTechFX, and obtained $22 million from KuCoin for breaking regulations. She also recovered $4.3 million from Coin Cafe and $24 million from Nexo and pursued legal action against the ex-CEO of Celsius.The Gemini settlement underscores the ongoing efforts by regulators like Attorney General James to protect investors in the volatile cryptocurrency market. New Yorkers and industry insiders alike are encouraged to report any suspicious activity, highlighting the critical role whistleblowers play in maintaining the integrity of the burgeoning crypto space.The post New York’s AG Takes on Crypto: Gemini’s $50 Million Lesson appeared first on Coin Edition.See original on CoinEdition More

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    Erdogan says Biden faces a test of sincerity in handling of the Gaza war

    In an interview with reporters on his way back from the G7 Summit in Italy, Erdogan said Biden is expected to demonstrate that the Gaza ceasefire plan is not a calculated electoral tactic but a sincere effort to end the war.He also said that Germany has softened its stance on sales of Eurofighter jets to Turkey. In November, Turkey said the country was in talks with Britain and Spain to buy Eurofighter Typhoons, though Germany objected the idea. “Eurofighters are important to us,” he added.Erdogan also said that inflation will be put on a more favourable position in the final quarter with the steps to be taken on interest rates.”Policies aimed at rebalancing the economy are bearing fruit,” Erdogan said. More