Latest news with #currencyvolatility
Bloomberg
a day ago
- Business
- Bloomberg
TSMC CFO on Currency Volatility Impact on Business
Wendell Huang, Senior Vice President and CFO of TSMC, says the company views currency volatility as a big uncertainty to its margins and is constantly reviewing hedging strategies to manage the impact on business. He speaks exclusively with Annabelle Droulers on Bloomberg Television. (Source: Bloomberg)
Bloomberg
5 days ago
- Business
- Bloomberg
Wise Shares Slump After First-Quarter Earnings Miss Estimates
Wise Plc shares fell by the most in seven months after the fintech company's fiscal first-quarter earnings missed analyst estimates, driven by higher currency volatility. The company reported underlying income of £362 million ($485 million) in the three months through June, which missed the £372 million average of analyst estimates compiled by Bloomberg. Still, the company maintained its full-year forecast for that figure to grow as much as 20%.
Reuters
10-07-2025
- Business
- Reuters
Brazil's markets face testing time after Trump tariff blow
LONDON, July 10 (Reuters) - Brazil's financial markets looked set for a bumpy start on Thursday, with traders still trying to grasp U.S. President Donald Trump's shock move to slap 50% tariffs on Latin America's largest economy rather than the 10% previously indicated. Currency volatility gauges were at their highest since the back end of April's 'Liberation Day' panic, after the real slumped as much as 2.8% on Wednesday in reaction to what Deutsche Bank described as an escalation of tensions. U.S.-listed shares of Brazilian firms and banks sank in premarket trading, with Itau Unibanco losing 2.7%, Banco Santander down 2.4% and state oil firm Petrobras ( opens new tab down nearly 1%. Bond traders were also bracing for the local market to reopen. Brazil's bonds have been a strong performer in emerging markets this year, with international dollar-denominated bonds returning nearly 8% and local real ones a whopping 20%. MSCI's dollar-denominated Brazil stock index is up nearly 25%, too, helped by the year's 13% surge in the real. Graham Stock at RBC BlueBay Asset Management said Trump's reasoning for the 50% tariff level had centred on his grievances around a court case against right-wing former Brazilian president Jair Bolsonaro, as well as legal moves against U.S. social media firms. "The economic implications are nevertheless fairly modest," Stock said, as just over 10% of Brazil's exports go to the U.S., and were worth only around 1% of the former's GDP. "The risk is that President Lula seeks to exploit his defiance of U.S. interference as a badge of honour in the run-up to the October 2026 elections, in which case de-escalation becomes less likely," he said. Wednesday's decision by Trump followed a threat on Monday to impose an additional 10% tariff on the BRICS group of developing nations - of which Brazil is the 'B' - which he called "anti-American." The tariffs on Brazil could have a significant impact on food prices in the United States. Around a third of the coffee consumed in the U.S., the world's largest drinker of the beverage, comes from Brazil and more than half of all the orange juice sold in the U.S. also comes from the South American agricultural powerhouse.
Bloomberg
01-07-2025
- Business
- Bloomberg
Taiwan's Life Insurers Caught in Dilemma With Costly FX Hedges
Taiwan's life insurers were caught flat-footed when the local dollar surged in May, and there are signs to suggest their pain has only just begun. Major Taiwanese life insurers' hedging against foreign-currency volatility stood at 47.2% of their overseas bond and equity holdings in the first quarter, the lowest level since at least 2013, according to Bloomberg's analysis. The study was based on the firms' quarterly presentation materials and showed that the level of protection has fallen from an all-time high of 61.9% reached in 2017.
Bloomberg
01-06-2025
- Business
- Bloomberg
Carry Trades Roar Back Into Favor as Emerging Currencies Rally
Emerging market carry trades are taking off again, as currency volatility subsides amid signs President Donald Trump's aggressive tariffs may not get fully enacted. An index of carry returns — for which a trader borrows in a low-yielding currency and then invests in another offering higher returns, hit a seven-year high in late May. Asset managers have boosted long positions in developing-nation currencies in recent weeks, with those on Mexico's peso reaching a nine-month high, based on CME Group Inc. data.
