“Inflation and the ECB…”

Inflation confusion increases odds of ECB mistake

For the European Central Bank, the batch of euro zone consumer price data delivered on Wednesday contained a package of mostly bad news wrapped in a thin layer of good news.

The positive spin is that headline inflation in November rose 10% year-on-year, down from 10.6% in October, and lower than the 10.4% forecast by a Reuters poll of analysts. A sharp slowdown in energy prices was largely responsible for the surprise.

Less encouragingly, underlying inflation, which excludes energy, food, alcohol, and tobacco, was stuck at 5%, well above the central bank’s 2% target. An intermediate measure, which only excludes energy and food, actually rose to 6.6% in November from 6.4% the previous month.

Biden, Macron vow unity on Ukraine and move to end subsidy tensions

Joe Biden on Thursday used the first state visit of his presidency to demonstrate unity with France’s Emmanuel Macron on Ukraine, show willingness to speak to Russia’s Vladimir Putin and assuage European anger over U.S. subsidies.

But Ukraine, the biggest attack on a European state since 1945, remained the most pressing issue for the leaders, who vowed to continue robust support and to back Kyiv during the tough winter months.

Biden has so far resisted talking to Putin since the invasion was launched in February, while Macron has kept lines of communication open. Russia calls the war a “special operation.”

“Let me choose my words very carefully,” Biden told a news conference with Macron. “I’m prepared to speak with Mr. Putin if in fact there is an interest in him deciding he’s looking for a way to end the war. He hasn’t done that yet.”

Macron, for his part, said he would continue to talk to Putin to “try to prevent escalation and to get some very concrete results” such as the safety of nuclear plants.

The two leaders also sought ways to ease some economic tensions in Oval Office talks.

EU tentatively agrees $60 price cap on Russian seaborne oil

European Union governments tentatively agreed on Thursday on a $60 a barrel price cap on Russian seaborne oil – an idea of the Group of Seven (G7) nations – with an adjustment mechanism to keep the cap at 5% below the market price, according to diplomats and a document seen by Reuters.

The agreement still needs approval from all EU governments in a written procedure by Friday. Poland, which had pushed for the cap to be as low as possible, had as of Thursday evening not confirmed if it would support the deal, an EU diplomat said.

HSBC to sell Canada business to RBC for $10 bln

HSBC HSBA.L has agreed to sell its business in Canada to Royal Bank of Canada RY.TO for $13.5 billion Canadian dollars ($10.04 billion) in cash.

The sale comes as HSBC pursues a strategy of focusing its resources on its core markets, amid pressure from its biggest shareholder Ping An to improve its performance.

Chinese insurance company Ping An Insurance Group 2318.HK has been pushing HSBC to split off its Asian business to boost returns.

“We decided to sell following a thorough review of the business, which assessed its relative market position within the Canadian market and its strategic fit within the HSBC portfolio,” Chief Executive Noel Quinn said.

Markets sigh with relief after Powell speech, but more turbulence likely ahead

A rally in U.S. stocks and bonds powered ahead after a speech by Federal Reserve Chairman Jerome Powell on Wednesday, but some investors believe a looming recession could cap gains in both asset classes.

Though asset prices have been battered by the Fed’s rate rises this year, momentum has been on the side of the bulls in recent weeks.

The immediate reaction to Powell’s speech on Wednesday showcased investors’ recently optimistic mood.

U.S. crypto broker Genesis says it is working to avoid bankruptcy filing

U.S. cryptocurrency brokerage Genesis said it was seeking to avoid bankruptcy after Bloomberg news reported on Tuesday that creditors to the firm are organizing with restructuring lawyers to prevent insolvency.

“Our goal is to resolve the current situation in the lending business without the need for any bankruptcy filing,” a Genesis spokesperson said.

Representatives for Proskauer and K&E did not immediately respond to requests for comment.

“We’ve begun discussions with potential investors and our largest creditors and borrowers, including Gemini and DCG, to agree on a solution that shores up our lending business’ overall liquidity and addresses clients’ needs,” Genesis’ interim chief executive Derar Islim told clients in a letter seen by Reuters.

Genesis has hired investment bank Moelis & Company “to evaluate the best possible asset preservation strategy and effectuate a roadmap,” the firm said in the letter.

The crypto lending arm of U.S. digital asset broker Genesis Trading suspended customer redemptions earlier this month, citing the sudden failure of FTX, where its derivatives business has approximately $175 million in locked funds, the company had said.

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