Aurelia Butler

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    in Economy

    Commerzbank deal could lift UniCredit’s junior debt ratings, Moody’s says

    MILAN (Reuters) -Moody’s would consider hiking UniCredit’s junior credit rating one notch above Italy’s sovereign rating if it bought Commerzbank (ETR:CBKG), depending on a number of factors including an ability to contain execution and operational risks, the ratings agency said.Italy’s UniCredit has built a near 21% stake in Commerzbank, pending supervisory approval, and says it is keen to explore a full takeover. The move has irked Germany’s establishment and Commerzbank has said its strategy is based on independence. An acquisition would be Europe’s first major cross-border banking deal since the global financial crisis. Moody’s (NYSE:MCO) said it would assess whether UniCredit’s standalone rating of ‘Baa3’, currently aligned with Italy’s rating, would merit an upgrade to ‘Baa2′ in the event of a deal.UniCredit’s junior unsecured debt rating would improve as a consequence, it said.Any upgrade “would depend upon the combined group’s degree of international diversification, exposure to Italian sovereign risk, and its post-acquisition capitalization, asset risk, funding and liquidity,” Moody’s said.Italy’s weak credit standing has traditionally posed a challenge to Italian lenders’ international expansion plans.Before courting Commerzbank, UniCredit underwent a long restructuring and amassed billions of capital in excess of its minimum target.In the event of a deal, a stronger footprint in triple-A rated Germany, more diversified funding channels, and a lower direct exposures to Italy’s debt relative to capital would “loosen the intrinsic links and correlation” between UniCredit’s and Italy’s ratings.”We would expect UniCredit’s currently very strong capitalization to be diluted in the event of an acquisition of Commerzbank, but to remain sound and at least consistent with management’s stated target range for a minimum CET1 of 12.5%-13%,” Moody’s said, referring to a key gauge of capital.”While any acquisition would likely reduce profitability in the short-term given restructuring and other costs, it would in the medium-term enable higher returns through cost synergies in Germany and deliver a stronger combined franchise,” it added.Meanwhile, Moody’s confirmed UniCredit’s ratings with a stable outlook. More

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    in Economy

    Argentina budget cuts spark protests at universities

    The call for protests came after Milei’s administration threatened to veto a law passed weeks ago by Congress to guarantee university funding, as Argentina faces an economic crisis with annual inflation close to 240% and over half of its population in poverty. “The government has a systematic, methodical and gradual plan to destroy public education,” Ricardo Gelpi, rector of the University of Buenos Aires, said in a statement. The university is the country’s largest and ranked among the 100 best in the world, according to QS ranking.Milei’s libertarian government has repeatedly justified budget cuts by claiming that public universities are sites of “socialist” indoctrination, but the good reputation of higher education institutions among Argentines has resulted in widespread social resistance.”This government is going to veto a financing law that would represent a very small percentage of the country’s GDP,” Gelpi said, adding that Milei’s administration does not care about education, science, or the universities’ social aspect.In April, a protest that drew hundreds of thousands of students and teachers forced Milei to reconsider a cut in the universities’ budget, although authorities from prestigious universities – which are mostly free in Argentina – said afterwards that the government did not comply with the promised improvements.Milei claims his economic plan works toward a fiscal balance in Argentina’s battered economy, but his opponents say that his adjustments have not been careful or equitable and have harmed more vulnerable people and the most sensitive sectors such as health and education.”Public university education was never defunded. The government’s commitment to public universities has remained firm,” Argentina’s Ministry of Human Capital said in a statement, claiming it just demanded more clarity in the management of resources.According to the University of Buenos Aires, which counts five Nobel laureates among its graduates, university teachers and non-teaching staff have lost around 40% of their purchasing power since December, “a figure that continues to deteriorate even further” to remain below the poverty line. More

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    in Economy

    The China challenge isn’t bringing Americans together

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    in Economy

    The trouble with pinning down the neutral rate

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    in Cryptocurrency

    Bitcoin (BTC) Bulls Aren’t Ready to Give Up, Shiba Inu’s (SHIB) Dreams of $0.00002 Are Real, Ethereum (ETH) at Pivotal Threshold

    The graph displays Bitcoin’s steady ascent, surpassing significant resistance levels that had previously kept the price low for several months. Although there appears to be a brief correction, the price has recently retraced slightly from the $65,000 level. It appears that the recent dip was a necessary correction that let Bitcoin cool down before maybe starting to rise again. The fact that Bitcoin has managed to maintain above important support levels like the $62,000 and $61,000 thresholds is a major factor in its strength. Because of the support provided by significant moving averages, these levels keep the asset stable and limit any significant short-term decline. As long as Bitcoin continues to trade above these levels, the bullish outlook is sustained. Bitcoin’s upward trend is sustained despite recent selling pressure due to growing confidence in global markets. Investors are increasingly considering Bitcoin as a hedge and a high-performing asset as a result of the ongoing global monetary easing and risk-on sentiment. Even though some volatility is to be expected, the price action of Bitcoin indicates that the bulls are still in charge. The current setup appears ready for more gains, particularly considering that October — dubbed Uptober by the cryptocurrency community — has historically been a strong month for Bitcoin.The upward momentum of SHIB is supported by multiple factors. Initially the solid support it discovered between the $0.000015 and $0.000016 levels serves as a basis for additional expansion. These ranges are essential to preserving the present bullish attitude. Shiba Inu is in a good position to aim for higher highs if it can maintain above these levels. In addition, the recent spike in trading volumes and increasing interest from institutional and retail investors lend credence to the $0.00002 price target. In order to facilitate smoother price movement and a possible breakout, the market is receiving more liquidity as SHIB continues to garner attention. Shiba Inu may reach the elusive $0.00002 level sooner than many may have predicted, thanks to this infusion of capital. Technically speaking, SHIB appears to be strengthening and recovering. A bullish reversal was indicated by the asset’s recent crossing of a number of significant moving average, including the 26-and 100-EMA. The upward trajectory will not change as long as these moving averages serve as support. But there are still difficulties. To fully validate its trajectory toward $0.00002, SHIB must overcome the immediate resistance levels at $0.000018 and $0.000019. Reaching the $0.00002 mark in the near future becomes quite possible once those levels are cleared.The $2,600 mark, which serves as immediate support, is one of the most important price levels to keep an eye on. Since it has been tested several times recently, ETH needs to stay above this level in order to keep its bullish outlook. The next target where the 200-EMA and other resistance levels converge is approximately $2,800 – if Ethereum is able to maintain its current level above this barrier. Reaching this threshold might pave the way for a bigger comeback. Ethereum may retreat to the $2,500 region or even lower, toward $2,400, where stronger support is located, if it is unable to hold its current levels. Ethereum’s ability to stay above the $2,600 and $2,800 levels will be crucial to its performance in the near future. A rally toward $3,000 and higher is possible if bulls can muster enough momentum to push ETH above $2,800. But giving up on support could pave the way for a longer consolidation period and a more thorough retreat.This article was originally published on U.Today More

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    in Economy

    European carmakers brace for a deeper and longer downturn

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    in Economy

    Harold Daggett, US port union boss disrupting global trade

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