ANNAPOLIS, Maryland (Reuters) – U.S. inflation data for December indicates price pressures are continuing to ease, Richmond Federal Reserve President Thomas Barkin said on Wednesday after a government report showed that an important underlying measure of price increases had slowed last month.

The Consumer Price Index report for December “continues the story we have been on, which is that inflation is coming down towards target,” Barkin told reporters at a Maryland Chamber of Commerce event.

Investing.com — In an unexpected move, Bank Indonesia (BI) has trimmed its policy rate by 25bps, a strategy aimed at bolstering domestic growth.

Prior to this, BI had underscored its concentration on stability and the absolute level of the Indonesian Rupiah (IDR), leading to worries about the near-term growth outlook.

These concerns, coupled with fears of potentially diminished loan growth potential in 2025, amplified share price corrections from Emerging Market (EM) sell-off amid broader global macroeconomic concerns.

Despite lowering its 2025 Gross Domestic Product (GDP) growth forecast to a range of 4.7-5.5%, down from the previous 4.8-5.6%, BI anticipates that system loan growth will be sustained at 11-13%.

In response to the rate cut, Morgan Stanley (NYSE:MS) analysts commented that “uncertainties remain regarding the global macro outlook and therefore IDR stability.”

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

By David Shepardson

WASHINGTON (Reuters) – The U.S. Commerce Department said Wednesday it is imposing new export controls on biotechnology equipment and related technology because of national security concerns tied to artificial intelligence and data science.

Washington has raised concerns that China could use U.S. technology to strengthen military capabilities and help design new weapons through AI. The department said the laboratory equipment could be used for “human performance enhancement, brain-machine interfaces, biologically-inspired synthetic materials, and possibly biological weapons.”

The new export controls, which restrict shipments to China and other countries without a U.S. license, are for high-parameter flow cytometers and certain mass spectrometry equipment, which Commerce said can “generate high-quality, high-content biological data, including that which is suitable for use to facilitate the development of AI and biological design tools.”

This is the latest effort by Washington to restrict U.S. technology to China. On Monday, Commerce moved to further restrict AI chip and technology exports from China aimed at helping the United States maintain its dominant status in AI by controlling it around the world.

U.S. lawmakers have been considering a number of proposals to keep Americans’ personal health and genetic information from foreign adversaries and aim to push U.S. pharmaceutical and biotech companies to lessen their reliance on China for everything from drug ingredient manufacturing to early research.

Last week, U.S. lawmakers called on the Commerce Department to consider restricting the export of U.S. biotechnology to the Chinese military, citing concerns Beijing could weaponize it.

The Chinese Embassy in Washington last week said Beijing “firmly opposes any country’s development, possession or use of biological weapons.”

In August, U.S. lawmakers called on the Food and Drug Administration to ramp up scrutiny of U.S. clinical trials conducted in China, citing the risk of intellectual property theft and the possibility of forced participation of members of China’s Uyghur minority group.

By Hannah Lang and Chris Prentice

WASHINGTON (Reuters) – Top Republican officials at the U.S. Securities and Exchange Commission are poised to begin overhauling the agency’s cryptocurrency policies potentially as early as next week when President-elect Donald Trump takes power, said three people briefed on the matter. Among the measures commissioners Hester Peirce and Mark Uyeda are weighing are initiating the process that would ultimately lead to guidance or rules clarifying when the agency considers a cryptocurrency to be a security, and reviewing some crypto enforcement cases pending in the courts, two of the people said. Paul Atkins, Trump’s crypto-friendly pick for SEC chair and former agency commissioner, is widely expected to end a crypto crackdown led by President Biden’s Democratic SEC chair Gary Gensler, but it is unclear when the Senate will confirm him.

Gensler has said he will step down on Jan. 20 when Trump is sworn in.

As of next week, Peirce and Uyeda will hold the majority among the agency’s politically-appointed commissioners and are poised to get the ball rolling in the interim, the people said.

Like Atkins, the pair are crypto enthusiasts who have criticized Gensler’s tough stance on the industry and have in the past floated alternative crypto-friendly initiatives. Peirce and Uyeda were aides to Atkins when he was at the SEC from 2002 to 2008 and the three have a good relationship, according to one of the sources and several other former SEC officials. The three have discussed potential crypto policy changes, said the sources who declined to be identified discussing private policy plans.

Peirce, Atkins and their representatives did not respond to requests for comment. A spokesperson for Uyeda did not respond to a request for comment. Worried about fraud and market manipulation, Gensler’s SEC brought at least 83 crypto-related enforcement actions, suing multiple prominent companies like Coinbase (NASDAQ:COIN) and Kraken, agency data shows. In many cases, the SEC argued crypto tokens behave like securities and that the companies and their products should comply with SEC rules, although some allege fraud. In the first few days of the new administration, the SEC is expected to begin a review of those court cases and potentially freeze some litigation that does not involve allegations of fraud, said two of the sources. Some of those cases could eventually be withdrawn. Many of those defendants argue cryptocurrencies are more like commodities than securities and that it is not clear when SEC rules apply. They have called for the SEC to write new regulations which would clarify when a token is a security. Peirce and Uyeda are expected to kick off the early stages of that rule-writing process, likely with a call for industry and public feedback, the two sources said.

Reuters and others have previously reported that the SEC is also likely to quickly rescind accounting guidance that has made it prohibitively costly for some listed companies to hold crypto tokens on behalf of third parties.

Trump, who courted crypto campaign cash with pledges to be a “crypto president,” is also expected to issue executive orders urging regulators to review their crypto policies, Reuters reported. Bitcoin soared past $100,000 for the first time in December on excitement over the new crypto-friendly administration.

‘HELD ACCOUNTABLE’ Still, even with a head start, reaching an agreement on crypto regulations could take months or longer, as could resolving complex enforcement actions that hinge on the definition of a security. Dismissing dozens of enforcement actions would be unprecedented, and could set a risky precedent by politicizing the enforcement process, said Philip Moustakis, partner at Seward & Kissel and former SEC attorney. In some cases, the court may object, said other lawyers.

One option for the agency would be to re-open settlement negotiations, said Robert Cohen, a partner at Davis Polk who previously worked in the SEC’s enforcement division. Settlement talks, aimed at averting lengthy and public litigation, are the norm, but crypto companies say the SEC under Gensler has been unwilling to engage in substantive discussions. Cohen added the new SEC leadership would likely continue to take a tough line on crypto fraud. “I think the industry wants to see fraudsters or wrongdoers held accountable,” he added.

(Additional reporting and writing by Michelle Price; Editing by Nick Zieminski)

Investing.com — US health officials are preparing to prohibit the use of the artificial food coloring Red No. 3, which is found in a wide range of products including candy and cold medicine, Bloomberg News reported today.

This decision comes after the substance has been associated with cancer. An announcement regarding the ban is expected as early as Wednesday, the report added. However, the exact timing of the announcement may still vary.

This decision comes more than three decades after the Food and Drug Administration (FDA) banned the use of Red No. 3 in cosmetics. This move was made after studies discovered tumors in lab rats that were linked to the dyes.

Over two years ago, consumer and patient advocacy groups petitioned the FDA to remove the dye from the American diet.

Among the supporters of the ban on controversial dyes is Robert F. Kennedy Jr., the nominee for secretary of the Department of Health and Human Services by President-elect Donald Trump.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

PARIS (Reuters) – Any moves to pursue financial deregulation by the incoming U.S. administration would increase the risk of a financial crisis occurring one day, France’s central bank governor warned on Wednesday.

U.S. President-elect Donald Trump’s return to office has raised the prospect of radical changes to the U.S. regulatory framework built up over decades to oversee financial services and banking, as well as digital currencies.

“Financial deregulation as some people are calling for in the United States would be dangerous, including for the financial system itself,” Bank of France Governor Francois Villeroy de Galhau told the French Senate’s finance commission.

The potential next head of a U.S. banking regulator, Trevor Hill, outlined wide-ranging plans earlier this month for a lighter touch on the banking industry on matters ranging from capital reserves to cryptocurrency.

Hill said he expected U.S. regulators to reconsider efforts to impose new capital requirements on large banks under internationally agreed Basel III regulations, which have already stalled under the Democratic leadership.

Washington has dragged its feet on the new rules, which more than two-thirds of the countries belonging to the Basel Committee on bank regulations have already adopted.

While Basel III has helped keep the European banking system stable, Villeroy said regulators in Europe should consider “adjustments” to ensure that the sector remains competitive.

He added that adopting a light U.S. regulatory touch for non-bank financial actors such as various types of funds, venture capital, private equity as well as cryptoassets would also put financial stability at risk.

Investing.com – The European Central Bank should lower interest rates down to 2% by the summer if inflationary pressures cool as expected in the coming quarters, Governing Council member Francois Villeroy de Galhau said on Wednesday.

Speaking to French lawmakers, Villeroy argued the ECB’s current deposit rate of 3% is weighing on businesses and households, adding that the so-called neutral rate — the theoretical level which neither helps nor hinders activity — is 2%.

He said bringing down borrowing costs will bolster the financing of the economy and a drop in the household savings rate.

In December, the ECB cut interest rates by 25 basis points for a third straight meeting and signaled the likelihood of further easing in 2025 as the eurozone’s economy is struggling and inflation is nearly back at target. Policymakers are widely tipped to slash rates by a quarter of a percentage point once again when they meet again later this month.

Debate at the ECB has swirled around whether it is easing policy fast enough to support an economy that is at risk of recession, facing political instability at home, and grappling with the prospect of a fresh trade war with the United States.

While the Eurozone economy expanded faster than anticipated in the quarter ended in September, a slew of economic data points have suggested that it decelerated in the final three months of 2024. Official figures out of Germany on Wednesday showed that Europe’s largest economy contracted for a second straight year and shrank by 0.1% in the fourth quarter, pointing to lingering difficulties heading into 2025.

Meanwhile, Eurozone inflation came in at 2.4% in December, according to preliminary data. This pace is marginally above the ECB’s 2.0% medium-term goal, although the central bank’s recent projections see price growth falling back down to that level in a few months’ time.

Investing.com — The Bank of France has proposed a reduction in a crucial regulated savings rate for the first time in half a decade. This move could potentially elevate profits for French banks.

The rate on a unique type of deposit, known as Livret A, should be decreased next month to 2.4% from the current 3%, according to the Bank of France Governor Francois Villeroy de Galhau. The decision was influenced by the recent dip in inflation and was communicated to the upper house of Parliament on Wednesday.

The decision to implement the French central bank’s recommendation now rests with Finance Minister Eric Lombard. Lombard had previously indicated in a local radio interview that the cut in the Livret A rate should be approximately 0.5 percentage points.

The Livret A savings accounts are extremely popular in France. The rate on these accounts has been steady at 3% since the beginning of 2022. As of the end of November, French consumers held €427 billion ($440 billion) in these accounts, as per data from La Caisse des Depots.

A reduction in the rate would assist in lowering the funding costs for French banks. These banks have largely been unable to capitalize on the surge in net interest income that has benefitted their peers in recent years.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com – Canada is facing pressure to hold a scheduled federal election “sooner than later” this year as threats from US President-elect Donald Trump’s strict tariff plans loom, according to analysts at Jefferies.

Following Prime Minister Justin Trudeau’s announcement that he will resign from the role earlier this month, Canada’s parliament has been prorogued — or suspended — until March 24.

However, this means that the federal election will likely not take place until May at the earliest, placing a politically-weakened Trudeau potentially in charge of overseeing Canada’s initial response to Trump’s trade stance.

The Jefferies analysts said in a note to clients that they expect the vote will be held in mid-May, flagging that investors face the dilemma of “assessing the potential outcomes” of the ballot without having official platforms for any of the major players.

“Objectively, the timing is quite poor as Canada faces an existential threat with the pending inauguration of President-elect Trump,” the Jefferies analysts said on Wednesday. 

Trump, who is set to return to the White House later this month, has vowed to slap a 25% levy on imports from Canada, sparking concerns among economists over a possible recession in the country. Canada sends roughly three-fourths of its exported goods and services to the US, Reuters has reported.

“Regardless of whether his announced 25% tariffs are real or simply an empty threat […], Canada is entering into critical negotiations with its most significant trading partner effectively leaderless,” the Jefferies analysts said.

Trudeau’s office said this week that he will hold a cabinet retreat to determine a response to Trump’s possible tariffs, adding that the leaders will “protect and defend Canadian interests” and “make unequivocally clear the mutually beneficial trade and security relationship the two countries share.”

Should Trump follow through with the imposition of the duties, Trudeau, who is set to step down in early March, has promised to issue countermeasures. He has also called for a united response from Canadian lawmakers.

Separately, Foreign Minister Melanie Joly has said Canada is not ruling out restricting energy exports to the US, although the proposal has received criticism from the premier of oil-producing region Alberta.

Investing.com — Economists are divided on the number of quarter-point interest-rate cuts Sweden’s central bank, the Riksbank, will make during the first quarter of the year.

A survey by Bloomberg revealed a split among twenty respondents, with half predicting a decrease in the benchmark rate to 2.25% by the end of March, and the other half forecasting a fall to 2% by the quarter’s end.

Last month, the Riksbank’s policymakers indicated a preference for a single 25-basis point cut from the current 2.5%, likely to occur in the early months of the year.

This outlook has been reinforced by recent data, including a larger-than-anticipated slowdown in inflation in December.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.