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Western consumer groups unconvinced by China’s economic stimulus efforts
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The perfect storm for European automakers
Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.The auto industry supports 6 per cent of the EU’s jobs, and Volkswagen is its biggest carmaker. So when the German group warns it must close three plants at home and axe thousands of workers, that is a sign of the stress Europe’s carmakers are under. European sales have yet to regain pre-pandemic levels, just when the industry is engaged in an epochal shift from internal combustion engines to electric vehicles — and has allowed Chinese rivals to leapfrog ahead in the new technology. Slow off the starting line, Europe’s carmakers face a restructuring as wrenching as the US auto industry after the 2008 financial crisis. But policy needs to play a more constructive role, too.Despite two profit warnings in three months, Volkswagen is not in such desperate straits as the biggest US carmakers 15 years ago. It says it needs to raise operating margins in the core VW brand from 2 per cent in recent quarters to 6.5 per cent by 2026 to fund investments in its future. Targeting three plant closures may be its opening gambit in talks with Lower Saxony, which has 20 per cent of voting rights, and the unions. But VW and Germany are not alone in having to slash overcapacity and costs. Italian politicians are pushing Stellantis, which owns Fiat, Peugeot and Opel, to keep open its Fiat plant in Turin despite falling sales. Some French assembly lines are already being shifted offshore.Germany’s big carmakers, in particular, were too complacent in assuming that the lucrative Chinese market could tide them over the tricky EV transition. Chinese manufacturers have stolen a march technologically and are supplanting foreign rivals in a market where, in July, half of all vehicles sold were EVs or plug-in hybrids. China’s upstarts benefited from huge state subsidies and lower labour costs, and started from a cleaner slate. They grasped more quickly, though, that EVs’ value lies more in snazzy software and electronics than in mechanics. In Europe, the cheapest new EV last year cost almost double the cheapest ICE car; in China, it cost 8 per cent less. China’s EVs are not only more affordable than foreign ones, they are often better.Fearing a flood of subsidised imports, the EU this week imposed higher tariffs on Chinese-made EVs. But protectionism is not the answer. Europe’s auto industry has to face up to the need to cut costs by reducing capacity and jobs. With fewer moving parts, EVs were always going to need fewer people to build them. Though there will be social costs that must be mitigated, governments need to accept that keeping surplus or lossmaking plants open will only delay or derail a successful transition to new technology. As well as making EVs more cheaply, Europe’s carmakers have to speed up model development, and find partners or outsource areas where they lack expertise. Tie-ups with Chinese counterparts they can learn from make some sense — though China’s newcomers might also use these to plug gaps in their own prowess, and gain access to ready-made distribution networks.Smarter policy must also play a role. The EU has banned the sale of new ICE cars from 2035, and its tightening emissions standards will force automakers to sell fewer of them over time. But as Mario Draghi’s report on competitiveness noted last month, the EU decreed targets without a proper industrial strategy to achieve them. It needs a comprehensive approach to developing the entire supply chain, including raw materials and the battery technology that lies at the heart of EVs, and of China’s EV success. Investment in charging networks and financial incentives are needed to encourage consumers to switch, so higher volumes start to cut production costs. It is not yet too late for Europe’s auto industry to narrow the EV gap. But China has opened a substantial lead. More
Bitcoin, Ethereum, Polkadot dip as Wall Street selloff mood hits risk assets
Bitcoin (BitfinexUSD) seems to be taking a bit of a pause as October wraps up, trading around $70,600 in early US trading, down about 2.35% in the past 24 hours. ETH/USD lost 4.7% while Polkadot was down about 5%. Despite today’s slump, the original cryptocurrency have climbed over 8% this week. Moreover, spot Bitcoin ETFs saw strong inflows, pulling in $893 million on Wednesday for its second day in a row above the $850 million threshold. Most of this demand was led by BlackRock (NYSE:BLK)’s IBIT, which alone brought in $872 million.With earnings season underway, traders are also gearing up for the U.S. presidential election and key economic reports, like next nonfarm payrolls numbers, looking for hints on rate cuts from the Federal Reserve.”Stocks are sliding in the US this morning for a variety of reasons, including underwhelming mega-cap tech earnings Wed night (META had some warnings about elevated costs while MSFT provided Dec Q revenue guidance that fell short of expectations),” Vital Knowledge analysts said.Wall Street slipped on Thursday as Microsoft and Meta’s warnings about rising AI expenses cooled the excitement around megacap stocks.Meta Platforms Inc (NASDAQ:META) shares dipped 2.8%, and Microsoft Corporation (NASDAQ:MSFT) fell 5.1%, even though both topped earnings expectations in their Wednesday reports. Adding to the pressure, the United States 10-Year edged up past 4.3%, weighing further on stocks.Bitcoin has been closing in on its all-time high this week, rising from around $71,000 to past $73,500 by Tuesday. This upward momentum comes just a few days before the U.S. elections—a time many traders view as bullish for the markets regardless of the results. Polls show a tight race between Donald Trump and Kamala Harris, stirring up market speculation as Bitcoin nears its all-time high of $73,798, last seen in March. The recent surge has brought the most-traded cryptocurrency within striking distance of this peak, adding to the pre-election excitement in the market. More
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The Budget should not be a big deal for interest rates
Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.For an hour on Wednesday, the financial market reaction to Rachel Reeves’ Budget was ugly — Truss-like, even. Between 2pm when the chancellor finished her speech and 3pm, UK government borrowing costs rose 0.2 percentage points, whether it was seeking to borrow short or long term. This was a much higher increase in yields than in equivalent government bond markets on both sides of the Atlantic and nerves must be jangling in the Treasury. Things were not much better on Thursday. If financial markets blow a loud raspberry to a Budget for a second time in just over two years, that would be a significant blow both to households and the Treasury. There are, however, important differences with Liz Truss’s “mini” Budget debacle. First, the UK market has been calm. Second, rising borrowing costs were not initially combined with falling sterling. In comparison to 2022, foreigners have not been dumping UK assets.Market reaction appeared to follow the Office for Budget Responsibility’s new forecasts which show that higher public spending would add to demand and inflation, while increased taxes would hit supply. This all sounds pretty inflationary and the fiscal watchdog said that while it still thought the Bank of England’s policy rate would fall, the Budget measures would leave interest rates 0.25 percentage points higher than it had assumed when initially producing the forecast. More spending, more borrowing and higher taxes equals higher interest rates than otherwise. This was reasonable analysis from the OBR, which was making a comparison based solely on the outlook now compared with that in March. But it makes little sense for the BoE to follow suit. The central bank has had ample time to adjust its thinking to Reeves’ announcement on July 29 that public spending would be much higher than the OBR assumed in March. Alongside public finance data that has also pointed to a large spending overshoot, the Budget cannot be much of a surprise. The key question for the BoE’s Monetary Policy Committee is what was genuine news. This is pretty limited. The increase in public borrowing for 2024-25 caused directly by policy decisions was £23.7bn, just a little higher than the chancellor’s announcement of a £22bn black hole in July. Whatever you think of the veracity of Reeves’ number, in their meetings in August and September MPC members had known this fiscal stimulus was coming. They did not then think it significant for interest rates. If the BoE says next week that their November meeting was the first time they have considered the effects of Labour’s fiscal plans and these are more inflationary, it would reflect very poorly on its ability to respond to events. For that reason, I think it highly unlikely. It is also worth noting that the BoE is traditionally loathe to suggest it is responding to loose fiscal policy with higher interest rates. When the former chancellor Jeremy Hunt cut national insurance in late 2023 and early 2024, its reaction was a large shrug. Based on information we have had for some time, UK fiscal policy is loosening a little this year, but is on a medium-term tightening path, inflation threats have declined significantly and wage pressures have been moderating. These remain the conditions for the BoE to lower official interest rates with the pace determined by many larger uncertainties than UK fiscal policy. Having suffered a longer-lasting inflationary shock than other European countries, especially in services, the central bank needs to maintain restrictive monetary policy. But it can do so while cutting rates gradually.The Budget is unlikely to change this reality much. The tax rises were big. The spending increases were bigger. But the broad macroeconomic balance did not alter much on Wednesday. chris.giles@ft.comVideo: Sketchy Politics: Labour pains More
Nexo Unveils Strategic Rebrand as a Premier Digital Assets Wealth Platform
Nexo redesigns its innovative solutions for long-term digital wealth building with 24/7 advanced client care on Bitcoin Whitepaper Day. Nexo, a leading digital assets institution, today announced its major rebrand and platform redesign, marking its evolution from a crypto lending pioneer to the first comprehensive and compliant digital assets wealth platform. Unveiled on Bitcoin Whitepaper Day, this step reflects Nexo’s growth and broader strategic vision for empowering forward-thinking investors to grow, preserve, and utilize their wealth. Following 20 months of client research across 5,000 users in 23 countries, Nexo’s revamped platform – with a new logo, website, and enhanced user interface – responds to the growing demand for sophisticated, yet flexible digital asset solutions. This evolution aligns with the needs of those who recognize the power of cryptocurrencies to create long-term value, as Nexo continues on its mission to drive the next generation of wealth.Nexo evolves with the maturing crypto landscapeNexo has been at the forefront of this evolution. With a robust business model and diverse offerings, Nexo has earned the trust of both retail and institutional investors across more than 200 jurisdictions. Its impressive track record – over $320 billion in processed transactions, $8 billion in crypto credit issued, and $945 million in interest paid out – cements its new direction: shaping the next generation of wealth.A new look for a new eraNexo’s new brand and visual identity reflect its mature, focused direction, namely “Driving the next generation of wealth” – in line with the discerning nature of crypto holders.The revamped identity integrates movement and precision, symbolizing Nexo’s commitment to client prosperity and forward-thinking solutions. Central to the upward-flowing logo pattern are two key concepts: human resilience – represented by a spiral – nods to the perseverance and adaptability inherent in human DNA, and exponential growth – captured by mathematically precise diagonals – shows the boundless opportunities of digital assets.Inspired by the modern, active lifestyle of Nexo’s clients, the new identity blends soft greys and beiges with energetic greens to capture today’s opportunities. Flowing patterns and precise elements convey both flexibility and security, resonating with Nexo’s clientele which demands innovation and reliability in managing their wealth.Nexo’s 360° product suite aligns perfectly with these demands and offers:Looking ahead, Nexo is evolving its suite of digital asset wealth tools with a strong focus on compliance and security systems built for long-term stability. The company continues to pursue strategic partnerships and international expansion, solidifying its position as the world’s leading digital assets wealth platform.For more information about Nexo’s ‘Wealth Forward’ strategy, users can visit https://nexo.com/brand.About NexoNexo is a premier digital assets wealth platform empowering clients to grow, manage, and preserve their crypto holdings. Our mission is to drive the next generation of wealth by prioritizing customer prosperity and delivering tailored solutions for building long-term value, supported by 24/7 client care. Since 2018, Nexo has been delivering unmatched opportunities to forward-thinking clients across more than 200 jurisdictions. Our all-in-one platform combines cutting-edge technology with a client-centric approach, offering high yields on flexible and fixed-term savings, crypto-backed loans, advanced trading tools, and liquidity solutions through the first debit/credit crypto card. Backed by deep industry expertise, a sustainable business model, robust infrastructure, security, and global licensing, Nexo champions innovation and long-lasting prosperity.Official website: nexo.comNote: Some of the products and services are unavailable to citizens or residents of certain jurisdictions, including where restrictions may apply.ContactNexo Communications TeamNexopr@nexo.comThis article was originally published on Chainwire More
Mawari Announces Node Sale to Bring Immersive Content to the World
Mawari Network, a spatial computing DePIN (Decentralized Physical Infrastructure Network), has announced a limited node license sale. Already a pioneer in immersive content, the node sale will make Mawari’s 3D streaming technology more scalable and accessible for content creators and developers. This node sale will help create a global, decentralized spatial computing infrastructure as the market for extended reality devices like the Apple (NASDAQ:AAPL) Vision Pro, Meta (NASDAQ:META) Orion, and Meta Quest 3 is projected to reach more than 100 million units in the next five years. As demand for immersive experiences grows, Mawari is building a network that can grow with it. Mawari’s infrastructure is optimized for the demanding needs of immersive experiences, positioning Mawari as a key actor in the emerging multibillion-dollar spatial computing market. Called “a sleeping lion” by Samsung (KS:005930) Next, Mawari is redefining and building the future of spatial computing. Its solution comprises the Spatial Streaming SDK and the Mawari Network. The SDK, supporting the Unity and Unreal engines, empowers developers to create seamless, immersive experiences. The Mawari Network, working in parallel, leverages a globally distributed network of GPU nodes to ensure low latency and optimal performance. The node license sale’s objective is to help scale the network, optimize its global performance, and ensure its resiliency.Node Sale DetailsThe node sale is scheduled for Q4 2024, building out the Mawari Network’s ability to perform compute-intensive tasks and efficiently deliver immersive 3D content on a global scale. The Mawari Network will be leveraging specialized GPUs around the world for advanced computation and streaming tasks, but a set of Guardian Nodes are needed to verify their work and the performance of the network overall as it serves multiple simultaneous immersive experiences. The node sale is for licenses to operate these critical Guardian Nodes.More specifically, Guardian Nodes’ responsibilities include assessing critical performance indicators like latency, bandwidth, and content quality to maintain the high standards necessary for immersive, real-time experiences. By monitoring the Mawari network, the community-run Guardian Nodes will make it more performant and more resilient, ensuring it can scale securely as it grows.Details of the node license sale will be announced soon.About MawariMawari is setting the standard for decentralized spatial computing and immersive content delivery. The Mawari Network powers real-time streaming of immersive content through a global network of compute nodes. Mawari is optimizing XR for awe, creating unforgettable experiences and revolutionizing how creators engage audiences at scale.Mawari Network built the foundational technologies to power the next generation of interactive media, fully realizing the possibilities of virtual worlds existing seamlessly alongside our physical reality. Its core technology, the Mawari Engine and Spatial Streaming SDK, runs on the Mawari Network — the world’s first and only DePIN (Decentralized Physical Infrastructure Network) that orchestrates storage, bandwidth, and rendering in real-time for spatial computing.Bypassing the rendering limitations of existing mobile devices and content delivery networks, Mawari’s global network of compute nodes has already powered activations from digital fashion shows to concert visualizations. The Mawari Network’s peer-to-peer architecture was purpose-built to scale spatial media streaming requirements with a community-centered ethos.Website: https://mawari.net/X (Twitter): https://x.com/mawariXRDiscord: https://discord.gg/mawariContactWill Haskinswill@serotonin.coThis article was originally published on Chainwire More
Satoshi Nakamoto ‘Bitcoin Whitepaper’ Turns 16 on This Date: Details
On Oct. 31, 2008, Nakamoto released the nine-page whitepaper “Bitcoin: A Peer-to-Peer Electronic Cash System,” which introduced a purely peer-to-peer version of electronic cash that would allow online payments to be sent directly from one party to another without the use of a financial institution. This document would go on to outline the framework for a decentralized, digital currency powered by blockchain technology, marking a pivotal moment in the history of cryptocurrencies. Bitcoin historian Pete Rizzo spotlighted the 16th anniversary of the Bitcoin white paper in a recent tweet, referring to it as “the perfect day to start the next bull run,” a sentiment that coincides with Bitcoin’s recent rise beyond $73,000. Since its publication, the whitepaper has not only aided Bitcoin’s prominence but has also laid the groundwork for an entire ecosystem of cryptocurrencies and blockchain applications. The paper continues to inspire innovation in a variety of domains, including decentralized banking and digital identity verification.The Bitcoin white paper proposed a solution to the double-spending problem using a peer-to-peer network. Building on ideas like Adam Back’s “Hashcash,” Satoshi adapted the preexisting proof-of-work concept in order to address the double-spending problem.At the time of writing, Bitcoin’s price fell by 0.15% in the last 24 hours to around $72,302, according to CoinMarketCap. Bitcoin reached $73,624 on Tuesday, its highest level since March 14, when it set a record.Bitcoin has been trading in a restricted range of $55,000 to $70,000, so the price climb remains significant. It has flirted with the $70,000 mark numerous times this year, and previous attempts over that level have proven to be only blips.Bitcoin has benefited from the market’s larger risk-on sentiment, with stocks reaching record highs this month amid rising interest rates, the return of demand for Bitcoin ETFs and another Federal Reserve rate policy announcement on Nov. 7.Bitcoin’s price has grown by over 9% in the last week. The digital asset is on track to close October up 14%, its biggest month since March.This article was originally published on U.Today More
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Musk due in court as $1 million voter giveaway faces courtroom test
PHILADELPHIA (Reuters) -Elon Musk, a billionaire supporting Republican Donald Trump, has been ordered to attend a Thursday hearing in a prosecutor’s lawsuit to block his $1 million-a-day giveaway to registered swing state voters ahead of the U.S. election on Nov. 5. The hearing before Judge Angelo Foglietta concerns Philadelphia District Attorney Larry Krasner’s bid to halt the giveaway less than a week before the tightly contested U.S. presidential election between former President Trump and Democratic Vice President Kamala Harris. According to published reports, Krasner asked the court for added security for the hearing, saying social media users posted an “avalanche” of inflammatory posts, including antisemitic attacks toward him, and posted his home address.Musk, meanwhile, is seeking to move the case to the federal court in Philadelphia.In a filing there, Musk said Krasner’s interference with core political speech and claim that he was “somehow unlawfully interfering with a federal election” raised significant questions of federal law that belonged in federal court.Krasner, who championed progressive causes when running for district attorney, accuses Tesla (NASDAQ:TSLA) CEO Musk and his political action committee America PAC of hatching an “illegal lottery scheme to influence voters.” Musk promised to give $1 million a day to randomly selected people who signed a petition pledging support for free speech and gun rights.Signatories were required to be registered voters in one of seven states that will likely decide the outcome of the Nov. 5 election – Arizona, Georgia, Michigan, Nevada, North Carolina, Pennsylvania and Wisconsin. Musk gave away the first $1 million to an attendee of an Oct. 19 rally hosted by America PAC in Harrisburg, Pennsylvania. Krasner’s Oct. 28 lawsuit alleges the giveaway amounts to an illegal lottery unsanctioned by the state, which has sole authority to run and regulate them.The lawsuit also says it violates consumer protection laws by “deploying deceptive, vague or misleading statements” about its rules. “Running an illegal lottery and violating consumer protections is ample basis for an injunction and concluding that America PAC and Musk must be stopped, immediately, before the upcoming Presidential Election on November 5,” the lawsuit said.Krasner’s office said Musk and America PAC have not published clear rules for the giveaway nor said how they are protecting voters’ personal information.He also said people who receive Musk’s money are “not actually chosen at random,” citing two winners who happened to live near, and attended, two pro-Trump rallies. Musk and America PAC’s lawyers did not immediately respond to requests for comment. Some legal experts have said Musk’s giveaway could also potentially violate federal laws against paying people to vote or register to vote. Others say he is in the clear because people are only required to sign a petition to enter. Krasner’s lawsuit was brought in a Pennsylvania state court and does not allege the giveaway violates federal law. The U.S. Department of Justice warned America PAC the giveaway could violate federal law, multiple news outlets reported last week, although federal prosecutors have not taken any action publicly. Musk, ranked by Forbes as the world’s richest person, has so far given nearly $120 million to America PAC, according to federal disclosures, making the group a crucial part of Trump’s bid to regain the White House. The entrepreneur has increasingly supported Republican causes and this year became an outspoken Trump supporter. Trump in turn has said that if elected, he would appoint Musk to head a government efficiency commission. More
