Aurelia Butler

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    in Economy

    Mexico left with 500mn-litre tequila lake after demand slows

    Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Mexico is sitting on more than half a billion litres of tequila in inventory, almost as much as its annual production, as the fast-growing industry reckons with slowing demand and the prospect of tariffs on exports to the US under Donald Trump.By the end of 2023, the industry had 525mn litres of tequila in inventory, either ageing in barrels or waiting to be bottled, according to data shared with the Financial Times by the Tequila Regulatory Council. Of the 599mn litres of tequila produced last year, about one-sixth remained in inventory, according to the figures. “Much more new spirit is being distilled than is being sold, and inventories are starting to accumulate,” said Bernstein analyst Trevor Stirling, attributing the build-up to falling demand and new distillery capacity that has recently begun operating in Mexico. “The tequila industry is set for a very turbulent 2025.”Consumers’ thirst for Mexico’s national drink grew rapidly over the past decade as the spirit went mainstream in the US, partly thanks to celebrity-backed brands such as George Clooney’s Casamigos.But demand has fallen back over the past 18 months as the pandemic spirits boom subsided and consumers cut back on their drinking in response to higher prices. The amount of spirits sold in the US in the first seven months of the year shrank 3 per cent compared with the same period last year, according to drinks data provider IWSR. Tequila consumption fell 1.1 per cent, compared with a 4 per cent rise in 2023 and a 17 per cent rise in 2021, the height of the tequila surge.Though some of the inventory is in the process of being aged, rather than just awaiting bottling, tequila evaporates rapidly compared with other ageing spirits — partly because of Mexico’s warm climate — meaning that most tequila is not left in barrels beyond three years. Demand has fallen back over the past 18 months as the pandemic spirits boom subsided More

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    in Cryptocurrency

    US and Bitcoin Standard, Here’s Big Catch, According to CryptoQuant CEO

    He believes this adoption is rather unlikely, explaining why this might not happen.However, Ju said, that happened during an economic crisis. Overall, Ju said, gold has surged, throughout the whole U.S. history, at times when the United States “perceived a threat to its dominance in the global economy” and debates about the gold standard would begin to gain traction.A similar thing is happening about not gold but Bitcoin as BTC enthusiasts and maximalists are advocating for adopting the Bitcoin Standard. “Now, Bitcoin seems to be filling the ideological space once occupied by gold,” Ki Young Ju stated.Ju admitted that he thoroughly supports the idea of the U.S. adopting the Bitcoin Standard. However, he doubts that the U.S. would adopt Bitcoin as a strategic asset. In order for that to happen, the country will have to face a significant threat to its global economic dominance.The U.S. government may indeed begin to purchase Bitcoin and stack it for risk management or economic leverage, however, it could happen for totally different motivations than Bitcoiners think.This article was originally published on U.Today More

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    in Economy

    Tunisia central bank keeps key rate at 8%

    TUNIS (Reuters) – Tunisian central bank said on Saturday it had left its benchmark interest rate unchanged at 8%, adding that borrowing costs were consistent with the inflation outlook. Inflation will average 7% this year before dropping to 6.2% in 2025, the bank said in a statement following its board meeting. More

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    in Cryptocurrency

    ProShares Files for ‘Hedged’ Bitcoin ETF Products: Details

    Nate Geraci states these products are long in the underlying stocks or gold. These would now feature a short USD and long Bitcoin position using Bitcoin Futures offerings. The dual-faced model of these new ETFs made him call the prospective offerings “BTC hedged ETFs.”Since spot Bitcoin and Ethereum ETF products secured approval from the U.S. SEC, there has been no slowing down in the number of filings.While the number of crypto ETFs like Litecoin, Hedera, Solana and XRP ETF products has grown, asset managers are also intensifying how these offerings target traditional finance products more closely.Geraci aptly observed that “Bitcoin is starting to eat tradfi.”As noted, at least one big asset manager will allocate 2% of its Assets Under Management (AuM) to Bitcoin, underscoring the potential for the asset to go mainstream on Wall Street.Already, many traditional firms are buying Bitcoin through ETFs, complementing the unrelenting acquisitions from spot buyers like MicroStrategy.This article was originally published on U.Today More

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    in Economy

    Italian parliament gives final approval to government’s 2025 budget

    Prime Minister Giorgia Meloni’s third budget aims to lower next year’s fiscal deficit to 3.3% of gross domestic product (GDP) from a targeted 3.8% in 2024, while cutting taxes for low and medium income brackets. Italy is under European Union orders to slash its deficit after huge overshoots in 2022 and 2023, and has pledged to bring it below the EU’s 3% of GDP ceiling in 2026.However the public debt, proportionally the second highest in the euro zone, is projected to rise through 2026 due to the delayed effect of costly state subsidies for energy saving building work – the so-called “superbonus”.The Treasury forecasts the debt to climb from 134.8% of GDP last year to 137.8% in 2026, before marginally declining.The rightwing government won the final vote on the budget after a second reading in the upper house Senate by 108 to 63. It was approved by the Chamber of Deputies last week.The package widens next year’s deficit to 3.3% of GDP from an estimated 2.9% based on current trends, borrowing an extra 9 billion euros ($9.4 billion) to fund tax cuts and some other expansionary measures. The euro zone’s third largest economy has stagnated in recent months, and growth this year is now seen coming in at around half of the government’s official 1% target.The slowdown may have been even sharper but for the regular arrival in Rome’s coffers of tens of billions of euros from the European Commission under the EU’s post-COVID-19 Recovery Fund.Rome’s fiscal consolidation efforts may be helped, however, by a decline in borrowing costs.The parliamentary budget watchdog forecast this month that yields on Italian sovereign bonds will be significantly lower than projected by the government, with savings of 1.7 billion euros next year and 17.1 billion by 2029. ($1 = 0.9590 euros) More

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    in Cryptocurrency

    ‘Rich Dad Poor Dad’ Author Doubles Down on His Bitcoin $350K Prediction for 2025

    He criticized the latter and said that he intends to keep buying Bitcoin, once again voicing his ultra-bullish price prediction of $350,000 for the world’s largest cryptocurrency.Kiyosaki believes that “Black Rock suppressing Bitcoin price so the whales can buy Bitcoin at under $100k.” The “Rich Dad Poor Dad” author said that he loves Bitcoin in his wallet and would never entrust the BlackRock ETF with his BTC holdings.Still, Kiyosaki tweeted that he intends to continue stocking up on Bitcoin for one simple reason — it continues to rise in the current highly unstable economic environment: “I will keep buying more Bitcoin because Bitcoin going higher.”Back then, Kiyosaki wrote that the main reason for his prediction is the fact that the U.S. now has a pro-Bitcoin president who takes office in January. Trump accepted crypto donations during his election campaign and made several promises to the crypto community, which include the creation of the strategic Bitcoin reserve and the pardoning of the Silk Road founder Ulbricht Ross from his double life-sentence he has been serving in prison since 2013.A curious thing — before Bitcoin surpassed $100,000 for the first time this December, Kiyosaki tweeted that he would stop buying BTC once $100,000 was left behind since it is not the time “to get greedy” now. However, in today’s tweet, he said he would continue accumulating Bitcoin.Earlier this year, Kiyosaki predicted BTC to hit $500,000 in 2025 and then $1 million by 2030 based on AI data. He provided no details about that, though.This article was originally published on U.Today More

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    in Economy

    India’s former PM Manmohan Singh cremated with state honours

    NEW DELHI (Reuters) – The body of Manmohan Singh, the former Indian prime minister whose death has sparked outpourings of grief at home and accolades from abroad, was cremated on Sunday on the banks of the Yamuna River in New Delhi with full state honours.The funeral was conducted in the Sikh tradition as priests chanted hymns, after Singh’s body, draped in the Indian flag, was carried through the capital on a flower-decked carriage pulled by a ceremonial army truck.The flag was removed and the body covered with a saffron cloth before it was placed on the pyre.Since Singh died on Thursday at 92, many have taken up his comment near the end of his 10-year rule that “history will be kinder to me than the contemporary media”.He was referring to a perception of weak leadership as he headed a coalition government facing numerous charges of corruption, which was thrown out of office in the 2014 election won by his successor Narendra Modi.Modi, who called Singh one of the nation’s “most distinguished leaders” after his death, attended the funeral, along with President Droupadi Murmu and representatives of various countries. Modi’s government has decided to allocate land for Singh’s memorial.Singh, considered the architect of India’s economic liberalisation, had criticised Modi’s economic policies such as demonetisation and introducing a goods and services tax.Singh is survived by his wife and three daughters.Congress Leader Rahul Gandhi accompanied Singh’s family on the truck to the Nigambodh Ghat cremation site after the procession from party headquarters in New Delhi, where people joined Congress party leaders and members to pay their last respects.The leaders of the U.S., Canada, France, Sri Lanka, China and Pakistan were among those expressing grief at Singh’s death and highlighting his international contributions. (This story has been refiled to say ‘sparked’, not ‘spark’, in paragraph 1) More

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    in Cryptocurrency

    Crypto surged in 2024, but regulatory path key for adoption in coming year

    “This year [2024] was a strong one for crypto, registering a 90%+ increase in total market cap,” Citi Research noted in its 2025 outlook. “Markets are optimistic on the regulatory front given the incoming U.S. administration’s crypto-friendly views and personnel.” The dramatic gains in 2024 were fueled by the launch of spot Bitcoin and Ethereum ETFs, which collectively drew $36.4 billion and $2.4B in net inflows through Dec. 19, respectively.  These flows have been the most significant driver of crypto returns, Citi said, expecting this trend to continue in 2025. But the outlook remains far from straightforward. While the incoming administration under President-elect Donald Trump is widely seen as pro-crypto, the potential for meaningful regulatory reform is still uncertain.  “The ‘Trump boost’ from the regulatory lens is not necessarily a de-regulation story … some market participants reckon the incoming administration may seek to replace more regulators who it deems as having crypto-skeptical track records, and promote those whose views better align with that of his administration,” Citi said. Trump had signaled a willingness to step away from the current administration’s “anti-crypto crusade,” which he criticized for stifling innovation. His proposed policies include a shift from enforcement-focused regulation to a more legislative-based approach, aiming to reduce uncertainty for both investors and issuers​. In a sign that the winds of change are in motion, Trump has nominated crypto-friendly Paul Atkins to replace SEC head Gary Gensler, who is set to step down from his role on Jan. 20. The regulatory environment holds sway for crypto adoption, Citi said, pointing to several other metrics including trading/flows, on-chain metrics and total value locked in decentralized finance as key measures to monitor. The regulatory framework will be an important determinant for adoption,” Citi said, flagging the prospect of increased transparency on regulation bringing other cryptocurrencies into the investor spotlight. “One consequence of the potential change in the regulatory regime is that crypto may mean much more than just Bitcoin,” Citi added. Citi warns, however, that macroeconomic factors could disrupt this optimistic narrative as policy uncertainty threatens to spark a volatility in risk assets.  ” Macro (BCBA:BMAm) may turn less favorable over the rest of the year [2025] given heightened U.S. policy uncertainty and forecasted equity volatility,” it said. More