EU Strikes Deal on Failed-Lenders Rules
The European Union agreed on rules to ease winding down smaller lenders in trouble, part of an effort to bring closer banking sectors of its member states.
The legislation will facilitate access for failing banks to deposit guarantee funds to supplement lender's own loss-absorption buffers without bailing in their depositors, according to a statement by member states after they reached an agreement with the European Parliament late on Wednesday.
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Sunderland set to sign Strasbourg's Habib Diarra in club-record transfer
Sunderland are set to sign midfielder Habib Diarra from Strasbourg in a club-record transfer. Sources, speaking on the basis of anonymity to protect relationships, say the fee will represent a record incoming for Sunderland and a club-high sale for Strasbourg. The 21-year-old has spent the entirety of his professional career at the Ligue 1 club, with whom he scored 10 goals across 99 first-team appearances. Advertisement The Senegal international, who scored in his nation's 3-1 friendly win over England earlier this month, is set to become Sunderland's most expensive ever signing after the £20m (€23.4m) arrival of Enzo Le Fee from Roma earlier this summer following a successful loan spell. The midfielder had also attracted from Sunderland's fellow newly-promoted rivals Leeds United, who The Athletic reported had lodged a bid of a bid of €26m (£22m) earlier in June. Diarra's arrival comes after Sunderland sold midfielder Jobe Bellingham to Borussia Dortmund in a deal worth up to €38m (£32m). Sunderland are back in the Premier League for the first time since 2017 having defeated Sheffield United in the promotion play-off final. (Sathire Kelpa/Eurasia)
Yahoo
36 minutes ago
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Morning Bid: Wall St flirts with new record
By Mike Dolan LONDON (Reuters) - What matters in U.S. and global markets today By Mike Dolan, Editor-At-Large, Finance and Markets The glass appears half full once again. With midyear approaching, the main Wall Street stock indexes are back within a hair's breadth of new records, helped along by a weakening dollar, the prospect of lower borrowing rates, increasing trade optimism and a renewed focus on the artificial intelligence theme. Throw in some positive tax and regulatory twists, and now we're likely to see new highs for the S&P 500 and Nasdaq later today. It's Friday, so today I'll provide a quick overview of what's happening in global markets and then offer you some weekend reading suggestions away from the headlines. Today's Market Minute * The United States has reached an agreement with China on how to expedite rare earth shipments to the U.S., a White House official said on Thursday, amid efforts to end a trade war between the world's biggest economies. * European Union leaders discussed new proposals from the United States on a trade deal at a summit in Brussels on Thursday, with Commission President Ursula von der Leyen not ruling out tariff talks could fail and saying "all options remain on the table". * Iran would respond to any future U.S. attack by striking American military bases in the Middle East, Supreme Leader Ayatollah Ali Khamenei said on Thursday, in his first televised remarks since a ceasefire was reached between Iran and Israel. * U.S. Treasury Secretary Scott Bessent on Thursday asked Republicans in Congress to remove a "retaliatory tax" proposal that targets foreign investors from their sweeping budget legislation, as lawmakers struggled to find a path forward on the bill. * What will be the biggest pain trades in the second half of 2025? ROI columnist Jamie McGeever discusses the most vulnerable positions. Wall St flirts with new record While still underperforming the MSCI's all-country index for the year so far, and lagging euro zone stocks by some 20% in dollar terms in 2025, the S&P500 has all but completed a remarkable 20% round trip from the peak of February to the troughs of April and back. The VIX 'fear index' ebbed to its lowest in four months, while gold prices slipped to their lowest in almost a month. With more than 40% of S&P500 revenues coming from overseas, the dollar's slide to 3-year lows this week spotlights a 10%-plus currency tailwind in 2025. The greenback remained near the year's lows on Friday. And even though President Donald Trump's harrying of Federal Reserve Chair Jerome Powell unnerves many about the long-term inflation impact of threatening Fed independence, it has stepped up bets about a resumption of interest rate cuts - and most clearly after Powell's term ends next year. While markets awaited the latest U.S. May inflation update later on Friday - with oil prices brushing off the latest Middle East conflict to resume a near 20% year-on-year drop - two and 10-year Treasury yields fell to their lowest since early May on Thursday. The bond market has been soothed in part by this week's Fed proposal on overhauling how much capital large global banks must hold against relatively low-risk assets, part of a bid to boost banks' participation in Treasury markets. But markets got a further lift overnight from signs of some movement on bilateral trade negotiations ahead of July 9's expiry of the 90-day pause on Trump's sweeping tariff hikes. The White House said the United States reached an agreement with China on how to expedite rare earth shipments to the U.S. European Union leaders discussed new proposals from the United States on a trade deal at a summit in Brussels late on Thursday, with Commission President Ursula von der Leyen saying "all options remain on the table". German Chancellor Friedrich Merz urged the EU to do a "quick and simple" trade deal rather than a "slow and complicated" one, even as French President Emmanuel Macron struck a cautious note. And while the U.S. fiscal bill is still struggling through the Senate, there was an important development on tax provisions that may ease foreign investor concerns. Treasury Secretary Scott Bessent asked Republicans in Congress to remove a "retaliatory tax" proposal - the controversial Section 899 that targets foreign investors with higher tax in retaliation for any overseas disputes. Justifying the removal, Bessent said that under a G7 agreement, a 15% global corporate minimum tax will not apply to U.S. companies under "Pillar 2" of the Organization for Economic Cooperation and Development tax deal. The latest economic numbers, meantime, were a mixed bag but show few signs of a sharp downturn yet. Durable goods orders boomed in May well above forecasts, while the labor market remained resilient with a drop in weekly jobless claims. May trade data, on the other hand, showed a sharp drop in exports. As the second-quarter earnings season comes into view next month, the longer-term AI investment theme was given a fresh spur from an above-forecast revenue readout from Micron Technology - even though its stock ended lower on Thursday. AI darling Nvidia hit a new record high, however, up more than 80% from the lows of April. In other corporate news, Nike's shares jumped 10% overnight as its first-quarter revenue outlook exceeded market expectations. Elsewhere, stocks in Europe were sharply higher on Friday - chiming with Wall Street. They have been boosted by the defense spending push at this week's NATO summit and as details of Germany's big fiscal stimulus unfolded. German lawmakers on Thursday passed a multi-billion-euro package of fiscal relief measures to support companies and boost investment, involving corporate tax breaks amounting to almost 46 billion euros ($54 billion) from this year through to 2029. Despite the positive noises on a U.S. trade deal, Chinese stocks bucked the global trend and were in the red on Friday. China's industrial profits swung back into sharp decline, falling 9.1% in May from a year earlier, as factory activity slowed in the face of broader economic stress. There was better news in Japan as core consumer inflation in Tokyo slowed sharply in June. Tech stocks led the Nikkei up more than 1%. Weekend reads: * TARIFF DAMAGE: Even though President Donald Trump appears to have retreated from his more extreme trade tariff plans due to market, industry and political pushback, trade barriers will damage the economy over the next decade. So claims a Peterson Institute paper by Warwick McKibbin, Marcus Noland and Geoffrey Shuetrim, who estimate the impact under five different scenarios - which get worse the bigger the retaliation overseas and the higher the country risk premium demanded by global investors. "Contrary to Trump's promises to revive U.S. industry, America's manufacturing and agriculture sectors see disproportionate losses in production and employment due to his tariffs." * OPAQUE DEBT: Global sovereign debt vulnerability is rising and 54% of low-income countries are already in or at high risk of debt distress, with many spending more on debt repayments than on education, healthcare and infrastructure combined. With frequent global shocks adding to the risk, the World Bank's Axel van Trotsenburg argues on Project Syndicate that debt obligations are now more complex, with a wider range of creditors and some borrowing occurring behind closed doors and outside the scrutiny of oversight mechanisms. "Without urgent action to improve transparency, unsustainable debt-service burdens in the developing world will become common." * UKRAINE VS RUSSIA IN AFRICA: On Africa's dry western tip, Mauritania has become an unlikely staging post for Ukraine's increasingly global struggle with its adversary Russia. Reuters' Jessica Donati and Olena Harmash detail Kyiv's Africa Strategy in seeking allies with aide and embassies - countering Russia's much more entrenched presence in the continent. * SIU SIMPLE: With much attention on the European Union's ability to attract or unlock much-needed investment capital, accelerating its capital markets integration - or Savings and Investments Union - is seen as critical. Nicholas Veron at Bruegel proposes catalyzing this by hardening a central supervisory system to replace the current complex hybrid of a central agency - the European Securities and Markets Authority - alongside national supervisory bodies. "The way to reform it is by pooling all capital market supervisory authority into a transformed multicentric ESMA that would operate mostly through its own offices in EU countries, ensuring supervisory consistency and no preferential treatment for any single financial centre." * WEGOVY TEEN IMPACT: A fast-growing cohort of American teens who have chosen to take Novo Nordisk's weight-loss drug Wegovy, placing them at the forefront of a monumental shift in the treatment of childhood obesity. A Reuters special report by Chad Terhune and Robin Respaut found children who had taken Wegovy or a similar weight-loss drug, to speak with them about their experiences. The reporters spent more than a year closely following four teens and their families to examine in detail the impact of treatment. Chart of the day: U.S. stock markets have completed a remarkable 20% round trip since February to stand back at the brink of new records - with the S&P500 up more than 10% on this time last year. Today's events to watch * U.S. May personal consumption expenditures inflation gauge (0830EDT) University of Michigan's final June consumer survey (10:00 AM EDT) * New York Federal Reserve President John Williams and Cleveland Fed President Beth Hammack speak Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias. (By Mike Dolan; Editing by Anna Szymanski) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
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Oregon Legislature wraps for 2025 after eleventh-hour strife, historic funding shortfall
State Sen. Mike McLane, R-Powell Butte, addresses his colleagues on the final day of the 2025 legislative session. (Shaanth Nanguneri/Oregon Capital Chronicle) Oregon lawmakers closed the 2025 legislative period with an ill-fated race to finish a gutted major transportation package, bringing an unsatisfactory end to a session that has strained lawmakers' political capital and dashed their hopes to compromise with one another. As the clock ran out for adjournment Friday night, Democrats were dealt a whopping high-profile loss after they failed to secure enough House floor votes to fund a dramatically watered-down transportation funding package that would at least keep the state's imperiled Department of Transportation solvent. Republicans celebrated defeating the larger $14.6 billion package and a later $11.7 billion package, with all but one of them vowing not to support any Democrat-led effort. Lawmakers introduced more than 3,400 bills — the highest number in at least two decades — during the session, prompting an ultimately unsuccessful effort led by Democrats to pass a law limiting the number of bills each legislator could introduce. The heightened tension among lawmakers Friday underscored the uphill battle they've faced this year in both chambers to pass ambitious policies, such as unemployment benefits for all striking workers, reforms of civil commitment laws and funding for more homeless shelters, all with limited resources and against the backdrop of rocky federal politics. 'We did all of that work in the context of a very tough budget environment. You saw declining revenues from what we were expecting in the February forecast for the first time in about 14 years,' House Speaker Julie Fahey, D-Eugene told reporters after the session ended. 'And it was all in the face of the economic uncertainty and chaos from the federal government.' After several years of higher-than-expected revenues and boosts from federal COVID-relief funds that have since expired, lawmakers had less money to spend this year. Some of Gov. Tina Kotek's housing priorities and investments in early childhood education took haircuts, leading to dire warnings from advocates. Still, the Legislature passed record K-12 school funding — $11.36 billion over the next two years — and, for the first time in Oregon history, they secured consistent funding from the state for summer school programs. Kotek never got the $150 million per year for wildfire funding she wanted, but she will get $45 million for wildfires every two years from a tax on Zyn and oral nicotine products. Oregonians fed up with skyrocketing electricity and gas rates should get some relief from several bills that reign in the ability of utilities to ask for rate hikes, and clarify who gets charged when utilities spend on additional infrastructure needed for their industrial energy users, such as data centers. The Legislature this session operated under the shadow of a second Trump presidency, though lawmakers didn't do as much to respond to him as they did in his first term in 2017. After strengthening the state's sanctuary state laws and protections for abortion and gender-affirming care in recent years, there wasn't much left to address. Senate Republicans killed a late-in-session effort led by Rep. Paul Evans, D-Monmouth, an Air National Guard veteran, to prevent Trump or future presidents from mobilizing the Oregon National Guard. In a change from prior sessions, relationships between the two parties soured in the House but appeared to improve in the Senate. After enduring the longest walkout in state history during his first term as Senate president in 2023, Rob Wagner, D-Lake Oswego, spent the interim traveling the state visiting senators, meeting their families and collecting baseball hats from each district. 'Maybe you didn't get your way, but your voice was heard in a way that felt different this session,' said Senate Minority Leader Daniel Bonham, R-The Dalles, on the Senate floor Friday evening. 'I'm hoping that we're building momentum.' The House was a different story. Lawmakers disagreed openly and bitterly, with tensions reaching a fever pitch by mid-June, when Democrats invited two drag queens to perform ahead of a resolution honoring the history of Black drag in Oregon. Republicans walked out en masse, though one stayed to watch. A smaller group of Republicans also boycotted the House chamber on Monday, saying they were protesting Democratic Gresham Sen. Chris Gorsek's 'wholly inappropriate' treatment of Rep. Shelly Boshart Davis, R-Albany, during a heated transportation committee hearing in which he raised his voice at her. Still, others skipped floor sessions to protest votes on a gun bill and taxes, though enough members stayed to maintain a quorum. Tears were also shed on the Senate floor as lawmakers mourned first late Senate President Peter Courtney, the longest-serving lawmaker in Oregon history, and then Sen. Aaron Woods, a Wilsonville Democrat in his first term who died of cancer in April at age 75. State Sen. Courtney Neron Misslin, D-Wilsonville, was appointed to his seat representing the 13th Senate District, and former school superintendent and nurse Sue Rieke Smith, of King City, was appointed by local commissioners to take over Neron Misslin's House seat in early June. The House, meanwhile, celebrated the June return of state Rep. Hòa Nguyễn, D-Portland, who missed most of the session while undergoing treatment for stage 4 cancer. Staff encouraged those in the chamber during her attendance to wear face masks as a courtesy. 'There are so many of us that have suffered loss,' Sen. James Manning Jr., D-Eugene, reminded his colleagues Friday night in a courtesy for Woods. 'And yet we continue to come here.' Editor-in-chief Julia Shumway contributed reporting. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
