Aurelia Butler

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  • 125 Shares149 Views

    in Economy

    ECB cuts growth outlook but raises key 2024 inflation projection

    Thursday’s new projections show inflation slowing from a current rate of 5.3% to 3.2% next year and 2.1% in 2025, making only slow progress towards the bank’s 2% target, despite the fastest streak of rate hikes in the ECB’s 25-year history. Inflation has been coming down all year after surging past 10% last year, but a robust labour market, healthy demand for services and relatively high corporate margins are keeping pressure on prices. Underlying inflation was also expected to remain above target with the 2024 reading seen at 2.9% and 2025 at 2.2%.That prompted the ECB to raise interest rates for the 10th straight time on Thursday, concerned that high inflation may be a bigger risk to the economy than economic stagnation. The growth outlook has meanwhile continued to sour and the ECB now sees a 2023 expansion of just 0.7% after predicting 0.9% three months ago. For next year, it sees the economy growing by 1.0% with no big upswing on the horizon. The following are the ECB’s projections for inflation and economic growth. Previous projections from June are in brackets.2023 2024 2025GDP growth: 0.7% (0.9%) 1.0% (1.5%) 1.5% (1.6%)Inflation: 5.6% (5.4%) 3.2% (3.0%) 2.1% (2.2%) More

  • 113 Shares149 Views

    in Economy

    ECB raises rates but signals end of policy tightening

    The central bank for the 20 countries that use the euro lifted its deposit rate to 4% from 3.75%, taking it to an all-time-high. Markets and economists expect the policy tightening move to be the ECB’s last and now anticipate a lengthy pause, followed by rate cuts in the second half of next year.Markets had seen unchanged rates as the most likely outcome of Thursday’s meeting only days ago but expectations shifted towards a hike after a source close to the discussions said the ECB would raise its 2024 inflation projection in new forecasts. “Based on its current assessment, the Governing Council considers that the key ECB interest rates have reached levels that, maintained for a sufficiently long duration, will make a substantial contribution to the timely return of inflation to the target,” the ECB said in a statement.Policymakers have been pulled in opposing directions by stubbornly high price growth figures and rising recession fears. Inflation is still stuck above 5% and markets do not see it falling back to the ECB’s 2% target even in the longer term as an exceptionally tight labour market pushes up wages and high energy costs keep the pressure on prices. But growth prospects are fading quickly, partly due to higher interest rates, and even services – long the bloc’s bright spot – have started to weaken, raising the risk the economy will slip into recession. The ECB’s new economic projections reflect these shifts and could stoke fears of stagflation, where a period of economic stagnation is accompanied by high inflation. Inflation is now seen at 3.2% next year after a 3.0% forecast three months ago while growth projections were cut to 0.7% for this year and 1.0% for 2024.”Inflation continues to decline but is still expected to remain too high for too long,” the ECB added. “The Governing Council is determined to ensure that inflation returns to its 2% medium-term target in a timely manner.””The Governing Council’s future decisions will ensure that the key ECB interest rates will be set at sufficiently restrictive levels for as long as necessary,” it added.The gap between opposing camps in the Governing Council had appeared modest ahead of Thursday’s meeting, with debate centred on whether the ECB had done enough or if one last rate hike was needed to get inflation down to target sometime in 2025.Attention now turns to ECB President Christine Lagarde’s 1245 GMT news conference. More

  • 138 Shares199 Views

    in Cryptocurrency

    Google Cloud teams up with Web3 startup to make DeFi mainstream

    The DeFi infrastructure provider Orderly Network has teamed up with Google Cloud to develop off-chain components of DeFi infrastructure focused on tackling self-custody and transparency challenges. Orderly will be a DeFi infrastructure provider, available on Google Cloud Marketplace. Continue Reading on Coin Telegraph More

  • 175 Shares169 Views

    in Cryptocurrency

    Binance faces legal tussle with SEC, sets hearing date amid leadership changes and layoffs

    On Tuesday, September 13, Magistrate Judge Zia M. Faruqui issued a minute order in the U.S. SEC v. Binance lawsuit, scheduling the next hearing for Monday, September 18. The hearing will address two pivotal motions filed by BAM Management and BAM Trading Services (affiliates of Binance US), concerning confidential details in the litigation and opposition to the U.S. SEC regarding a motion to compel and for other relief.In addition to this development, Binance.US has seen significant changes in its leadership structure. Brian Shroder, CEO of Binance’s U.S. affiliate Binance.US, left his position as the exchange made another round of job cuts, eliminating a third of its workforce. Despite speculation about the company’s stability following these moves, CEO CZ has denied any issues, stating that the exchange periodically reviews its team.John Reed Stark, former Chief of the SEC Office of Internet Enforcement, commented on the case recently, highlighting significant timing in the CEO’s resignation and potential whistleblowers’ emergence. He also noted Binance’s protective order against the SEC, arguing that the commission’s discovery requests were overly broad and unduly burdensome.Stark also shed light on BAM Trading’s unusual request to limit the SEC’s depositions to only four BAM employees and exclude six key witnesses, including BAM’s CEO Brian Shroder and CFO Jasmine Lee. He expressed skepticism about such a request, given his extensive experience in the SEC Enforcement Division.Adding to the drama, Binance US’s chief legal officer, Norman Reed, has reportedly taken over following Shroder’s departure. Amidst these changes, Binance US also announced significant layoffs, cutting over 100 positions, amounting to one-third of its staff. CEO Changpeng Zhao attributed these layoffs to the SEC’s actions, stating that the commission’s attempts to “cripple our industry” have had tangible consequences on American jobs and innovation.Stark speculates that the SEC and the U.S. Department of Justice (DOJ) might find opportunities to secure cooperation from Mr. Shroder, especially if he fears criminal prosecution. The recent layoffs at Binance could also provide the SEC with potential whistleblowers, who might be incentivized by the possibility of significant financial rewards.The upcoming hearing on September 18 promises to be a pivotal moment in this case, as the court will address key motions that could shape the trajectory of the legal battle between Binance and the SEC.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. More

  • 113 Shares189 Views

    in Cryptocurrency

    Bitcoin’s future uncertain as ‘death cross’ technical indicator forms

    However, a shadow has been cast over the future of these digital currencies with the formation of a ‘death cross’, a technical indicator that often signals an impending downtrend in prices or a shift in sentiment towards bearishness. The death cross is formed when the 50-day moving average for prices drops below the 200-day moving average. This event occurred for the first time since January 2022 and is considered an ominous sign from a technical perspective. At the start of 2022, Bitcoin was valued above $47,000 but then suffered a more than 65% fall to reach its low point in November.The impact of this technical indicator on Bitcoin’s future performance is yet to be determined. Since 2011, there have been nine instances of Bitcoin’s death crosses. The outcomes following these events have been almost evenly split between price decreases and increases over three, six or twelve month periods following the indicator’s appearance.Other cryptocurrencies also saw changes on Thursday. Ether—the second-largest cryptocurrency—rose 1.5% to $1,620. Smaller cryptocurrencies such as Cardano and Polygon remained relatively flat while so-called memecoins had mixed results: Dogecoin saw less than a 1% increase while Shiba Inu dropped by less than 1%.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. More

  • 138 Shares109 Views

    in Cryptocurrency

    Bitcoin holds steady above $26,000 amid inflation concerns and ETF anticipation

    The BTC/USD pair held quite well as the US dollar index (DXY) retreated to $104.23, a few points below this month’s high of $105.5. This came even after the latest US consumer inflation data showed an increase from 0.2% to 0.6%, higher than the median estimate of 0.4%. As a result, inflation rose to 3.6%, marking its highest level in months.High inflation is typically bearish for Bitcoin and other cryptocurrencies as it pushes the Federal Reserve to hike interest rates leading to better returns from safe assets like money market funds.However, Bitcoin’s price has shown stability as investors react to the decision by Franklin Templeton to file for a Bitcoin ETF. The firm now joins Wall Street companies like Invesco and Fidelity that have filed for these funds, causing investors to anticipate that the SEC will approve one or more of these funds.Technical analysis of the BTC/USD pair reveals that it has been in a tight range in recent days, rising from this week’s low of 24,940 to over 26,000. The pair moved slightly above the 25-period and 50-period moving averages while the Relative Strength Index (RSI) has moved to the neutral point of 50.Analysts also suggested that if U.S. regulators approve a Bitcoin spot price exchange-traded fund (ETF) in the coming months, it could have a positive impact on the price.Despite these developments, some traders caution that on-chain volume appears to be cooling down after a relief rally, indicating that the rally might be short-lived. However, BTC/USD is still holding the key $25,000 level.In terms of Bitcoin’s performance in September, it was on track to be its best-performing September in years. The last time BTC/USD gained in September was in 2016 when it recorded a 6.35% increase. In contrast, it had a 3.1% loss in 2022 but rebounded with a 5.6% increase in October, informally known as “Uptober” among bullish investors.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. More

  • 150 Shares199 Views

    in Cryptocurrency

    Coinbase CEO champions DeFi, calls for court action to set legal precedent

    According to his post on X (formerly Twitter), the United States Commodities and Futures Trading Commission should avoid taking enforcement actions against DeFi protocols, as they do not function as conventional financial service businesses, and it’s questionable whether the Commodity Exchange Act is even applicable to them.Continue Reading on Coin Telegraph More