Currency Basket – Basket Village USA Thu, 30 Jun 2022 12:36:42 +0000 en-US hourly 1 Currency Basket – Basket Village USA 32 32 Crypto in my 401(k)? In a way, that makes sense, but on the other hand… Thu, 30 Jun 2022 08:42:03 +0000

Spoiler alert: If you’re planning on skipping to the bottom of this article to find out if you should include crypto in your 401(k), you’ll be disappointed. There is no “yes” or “no” answer. What you invest in your qualifying retirement plan depends on your personal circumstances and how comfortable you are with taking risks.

But to get started, think about how you would answer the following three questions:

Is crypto available in my employer’s pension plan?

The title of a Shakespeare play can answer this question: A lot of noise for nothing. The likelihood of your employer offering crypto-based funds in the near future is low. The main reason for all the recent interest in this idea is that in April Fidelity announced that it would be offering a cryptocurrency option to plan sponsors. In other words, employers using Fidelity funds can (starting this year) Choose to add a cryptocurrency offering into their 401(k) plans. Specifically, if the plan sponsor chooses, plan participants would be allowed to allocate a portion of their assets to Bitcoin through an option on their 401(k) investment menu.

This announcement, however, does not mean that many employers will include this option as a choice in their investment basket for plan members. First, there has been a wave of class action lawsuits filed against plan sponsors regarding their 401(k) plans. Typical allegations are excessive fees, inappropriate investment options and insider trading. Given this challenge, why, an employer might ask, should we compound this risk by including risky assets in the 401(k) range? Second, the Department of Labor (DOL) has been very clear that it believes crypto assets are not suitable for most consumers. In an unusual move, the DOL issued guidance warning pension plan trustees to exercise “extreme caution” when considering crypto investment offerings. These guidelines will likely have a chilling effect on many 401(k) plan sponsors.

Another consideration is what “investing in crypto” really means. He could invest in the famous Bitcoin currency, but there are also other cryptocurrencies, such as Dogecoin and Ethereum. It could also mean investing in companies involved in storing, mining, or managing crypto assets. You really need to ask yourself what you are thinking about when researching crypto investments and then consider whether your 401(k) plan has related funds. Due to the novelty of this alternative investment and the risks involved, your choices will likely be very limited.

What is my motivation?

Are you interested in having crypto in your 401(k) because of FOMO (“fear of missing out”)? Investing your retirement funds in an asset class because all the cool kids do it is generally not a good idea. Even the biggest cryptocurrency fans agree that these assets carry significant risk. At a minimum, to invest in such plans, you need to have a general understanding of the difference between cryptocurrency and fiat currency and how blockchain compares to central banking. In other words, know what you’re getting into. This is an exciting new development in alternative investing, but it doesn’t mean that everyone has to sign up or lose.

Let’s say you feel comfortable with how this alternate perk works. A next question might be how would this fit in with the other investments in your 401(k)? Does the asset have a positive, negative or zero correlation with other funds in your portfolio? This question is about whether crypto could improve the diversification of your retirement funds. For example, some investors believe that crypto offers a counterweight to stocks. When the stock market goes down, Bitcoin can benefit. While this negative correlation may end up being true in the long run, the recent drop in Bitcoin’s value that coincided with falling stock prices has raised some eyebrows. Crypto still finds its place in the pantheon of long-term investment options. Before choosing crypto, also understand its place in your investment mix.

I plan to invest in cryptocurrency. Would it be better to hold it inside or outside my 401(k)?

This is a question where the answer may be a little clearer. A 401(k) can be a useful asset location for this type of investment.

The bad reputation that some attribute to cryptocurrency is not so much in the assess of this investment as in the handling of this brand new concept. First, tax law is still developing regarding crypto. In theory though, every time you use crypto as currency, you potentially have a taxable transaction. Pay for a pizza with bitcoin that has appreciated, and you will have to declare your gain. Apart from the simple inconvenience, consumers are not assured that they will have proper accounting of their digital coins. Cryptocurrency is a new industry and many intermediaries are not good at following the tax base.

Another management challenge is storing your cryptocurrency. Stories are legendary of investors who misplaced their crypto wallets and ended up losing millions in the digital ether.

These types of problems largely disappear when holding crypto in a qualified plan. The currency is held for long-term purposes, is not used for day-to-day transactions, and resides in a tax-deferred account. In addition, fiduciary management and oversight is provided by the fund provider and plan administrator, and the plan participant benefits from the legal protections of the Employees Retirement Income Security Act of 1974 (ERISA).

If you’ve done your homework and want to test out cryptocurrency ownership, your 401Ik) might be a good place to start.

The bottom line

To answer the question of crypto in your 401(k), first ask yourself if it’s even available (it probably isn’t) then ask Why (versus Why not)? Why do you want this asset to be part of your qualified retirement portfolio? If the answer is because it’s cool, buy an air conditioner instead. But if you’ve researched this alternative investment and see it complementing your long-term retirement goals, your 401(k) plan may be the right place to make your first foray into the market.

Co-Director, Retirement Income Center, The American College of Financial Services

Steve Parrish, JD, RCP®, CLU®, ChFC®, RHU®, AEP®, is Adjunct Professor of Advanced Planning and Co-Director of the Retirement Income Center at the American College of Financial Services. His career includes years spent as a financial advisor, lawyer and executive of a financial services company. He focuses on the law, estate planning, taxes and financial strategies that can contribute to a successful retirement.

Direxion launches Breakfast Co – Sun, 26 Jun 2022 00:47:34 +0000

First ETF to offer direct access to six popular agricultural commodities

NEW YORK, June 1, 2022 /PRNewswire/ — Direxion (, a leading provider of leveraged, inverse and thematic ETFs, today announced the launch of the Direxion Breakfast Commodities Strategy ETF (Ticker: BRKY), a one-of-a-kind exchange-traded fund offering exposure to the commodities that make up the most important meal of the day.

BRKY tracks the S&P GSCI Dynamic Roll Breakfast Index (OJ 5% Capped), which includes a basket of six commodities: corn, coffee, lean pork (bacon), orange juice concentrate, sugar and wheat. As the first ETF comprised of these commodity futures, BRKY provides access to commodities whose prices are rising due to supply chain pressures, geopolitical tensions and weather-related issues. In times of persistent inflation, this basket of commodities can offer strong diversification characteristics, due to their uncorrelated returns relative to stocks and bonds.

“2022 has been one of the toughest environments for traditional wallets in decades,” said David Mazza, Managing Director and Chief Product Officer of Direxion. “Investors can no longer rely solely on stocks and bonds to achieve their financial goals. Breakfast items can play an important role in diversification, as well as a hedge against the inflation that we all feel in our lives. wallets.”

The global food supply chain is more interconnected than ever and is unfortunately under pressure on prices due to the conflict in Ukrainedroughts in countries like Braziland other countries like India restricting food exports. In fact, food prices reached their highest levels on record in April 2022, according to the Food and Agriculture Organization of the United Nations (FAO). Year-over-year, they have increased by 30%, underscoring the extreme nature of these challenges.

“Everyone is feeling the impact of inflation,” Mazza said. “Even the price of a cup of coffee or a bowl of cereal has skyrocketed. But there is an opportunity to profit from this price rise in your portfolio by investing in these commodities with BRKY.”

About Direxion:

Direxion equips conviction-driven investors with purpose-built ETF solutions honed for precision. These solutions are available to a wide range of investors, whether they execute short-term tactical trades or invest in thematic strategies. Direxion’s reputation is built on developing products that accurately express market insights and enable investors to manage their risk exposure. Founded in 1997, the company has approximately $28.6 billion of assets under management at March 31, 2022. For more information, visit

There can be no assurance that the Funds will achieve their investment objectives.

For more information on all Direxion ETFs, visit www.direxion.comor call us at 866.301.9214.

An investor should carefully consider the investment objective, risks, charges and expenses of a Sub-Fund before investing. A Sub-Fund’s prospectus and simplified prospectus contain this and other information about the Direxion Shares. To obtain a Fund’s prospectus and summary prospectus, call 866-716-0735 or visit our website at A Fund’s prospectus and simplified prospectus should be read carefully before investing.

Direxion Shares ETF Risks –An investment in the Fund involves risks, including possible loss of principal. The Fund is not diversified and involves risks associated with concentration resulting from the Fund’s investments in a particular industry, sector or geographic region, which may result in increased volatility. The Fund’s use of derivative instruments such as futures and swaps is subject to market risks which may cause their prices to fluctuate over time. The Fund’s risks include index correlation risk, index strategy risk, derivatives risk, commodity derivatives risk, futures strategy risk, breakfast products, agriculture investment risk, market risk, counterparty risk, cash transaction risk, subsidiary investment risk, interest rate risk and tax risk. Please see the summary and full prospectus for a more complete description of these and other Fund risks.

Exchange-traded commodity futures contracts are generally volatile and not suitable for all investors. The value of a commodity-linked derivative investment is generally based on the price movements of a physical commodity and may be affected by changes in overall market movements, index volatility, variations in interest rates or factors affecting a particular industry or commodity, such as global pandemics, weather and other natural disasters, changes in supply and production, embargoes, tariffs and economic developments, international policies and regulations and changes in demand from speculators and/or investors. Commodity derivatives may also be subject to credit and interest rate risks which generally affect the value of debt securities. The Fund’s investments in derivative instruments may present additional and greater risks than those associated with a direct investment in securities or other investments.

The risks associated with the use of futures contracts are (a) the imperfect correlation between the variation in the market value of the instruments held by the Fund and the price of the futures contract; (b) the possible absence of a liquid secondary market for a futures contract and the resulting inability to close out a futures contract when desired; (c) losses caused by unexpected market movements, which are potentially unlimited; (d) the Index’s inability to correctly predict the direction of security prices, interest rates, currency exchange rates and other economic factors; (e) the possibility that the counterparty will default on its obligations; and (f) if the Fund does not have sufficient liquidity, it may have to sell securities or financial instruments from its portfolio to meet the daily variation margin requirements, which may lead the Fund to sell securities or financial instruments at a time when it may be disadvantageous to do so.

Distributor: Foreside Fund Services, LLC.

Media Contact: Douglas Hesneyplease
Same as public relations
[email protected]

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Russia and China set to develop new reserve currency Fri, 24 Jun 2022 11:26:29 +0000
  • Russia and China are developing a new reserve currency with other BRICS countries, President Vladimir Putin has said.
  • The basket currency would rival a US-dominated IMF alternative and allow Russia to expand its influence, an analyst has said.
  • The dollar’s dominance is already eroding as central banks diversify into Chinese yuan and smaller currencies.

Russia is poised to develop a new global reserve currency alongside China and other BRICS nations, in a potential challenge to US dollar dominance.

President Vladimir Putin has signaled that the new reserve currency will be based on a basket of group member currencies: Brazil, Russia, India, China and South Africa.

“The question of creating the international reserve currency based on the basket of currencies of our countries is being considered,” Putin told the BRICS Business Forum on Wednesday, according to a TASS report. “We are ready to work openly with all partners of the show.”

The dollar has long been considered the world’s reserve currency, but its dominance in the share of international foreign exchange reserves is declining. Central banks are looking to diversify their holdings into currencies like the yuan, as well as non-traditional areas like the Swedish krona and South Korean won, according to the International Monetary Fund.

“This is a move aimed at addressing the perceived US hegemony of the IMF,” ING’s global head of markets Chris Turner said in a note. “This will allow the BRICS to build their own sphere of influence and their own monetary unit within that sphere.”

Russia’s move comes after Western sanctions imposed over the war in Ukraine virtually cut the country off from the global financial system, limiting access to its dollars and straining its economy.

“The speed with which Western nations and their allies sanctioned Russian foreign exchange reserves (freezing about half) undoubtedly shocked the Russian authorities,” ING’s Turner said.

“The Central Bank of Russia has indeed admitted this, and there is no doubt that some BRICS countries – particularly China – have noticed the speed and stealth with which the US Treasury has acted,” he added. .

Those sanctions likely encouraged Moscow and Beijing to work on an alternative to the IMF’s international reserve asset, special drawing rights, Turner suggested.

Although not a reserve currency, the SDR is based on a basket of currencies made up of the US dollar, euro, British pound and Japanese yen, as well as the Chinese yuan.

One possibility is that the BRICS basket currency could attract reserves not only from members of the group, but also from countries already in their area of ​​influence, he suggested. These include countries in South Asia and the Middle East.

Russia saw its currency, the rouble, rebound above its pre-war level, thanks to central bank support, after plunging 70% in less than two weeks after the invasion of Ukraine . It rose 15.2% in June to 1.87 cents. Meanwhile, the yuan held steady at around $0.15 over the same period.

Read more: What does Russia’s invasion of Ukraine mean for markets? 13 investment experts share their perspectives on the Fed’s likely response, short- and long-term trading, and whether bitcoin can ever become a ‘safe-haven’ asset

Rupee and RBI: A match not made in heaven Thu, 23 Jun 2022 01:22:00 +0000

We have all heard about the depreciation of the rupee against the dollar lately. At around 78.06, the rupee has depreciated by more than 5% over the past year. But the depreciation of the rupee is not something unheard of. Since 1991, the INR has constantly depreciated against the dollar.

Since 1991, we have adopted the Liberalized Exchange Rate Management System (LERMS), the floating exchange rate system. In such a system, RBI frequently intervenes to manage the currency by buying or selling foreign currency in the open market. This is done to ensure the stability of the country’s balance of payments (record of all monetary payments between a country and other nations during a given period).

While the depreciation of the Rupee against the Dollar is well known, what most of us do not know is that the INR has strengthened by 7% against the Euro over the past last 12 months.

But why do we care so much about the EUR or any other currency against the USD?

The answer is the real effective exchange rate (REER) of RBI for 40 countries. It is the measure of RBI to measure the relative competitive strength of the Rupee and the Euro characteristics in first position in India trade based weighting and only marginally second to USD in India based weighting exports.

What is the RRSP?

Before we get to RRSP, let’s first understand what NEER is. Wait, we know we’re just confusing you, but spare us a minute!

The nominal effective exchange rate or NEER is an index of the weighted average of the bilateral exchange rates of the national currency vis-à-vis the currencies of the trading partners. The weights are derived from their shares in the national currency trading basket. So, if India trades with only the US and Europe, the NEER will be the weighted average of and with weights according to the proportion of trade with the two countries.

The REER is nothing but the NEER adjusted for the inflation differential between the national economy and its trading partners.

Without going too far into the real calculation of the REER, in simple terms, it is an effective exchange rate that assesses the fair value of a currency or the external competitiveness of an economy vis-à-vis its Commercial Partners. It serves as a guide to the monetary and financial policy strategy of the central bank.

India’s REER is based on a basket of currencies of 40 countries that reflects the country’s major foreign trading partners.

In May 2022, India’s RRSP was 115.3 compared to 113.7 in April and an all-time high of 118.3 in November 2017. For your information, an increase in RRSP indicates a reduction in India’s competitiveness. economy, which is not good.

The Role of RBI in Currency Management

RBI has always been adamant that it does not target any specific rupee level and only intervenes when there is excessive volatility. However, RBI often does NOT let the market find its level. This is the case during the pandemic period.

In the financial year 2021, India has seen an increase in foreign money flowing into the country. This led to a sharp shift in the current account balance (the sum of net trade in goods and services and remittances) from a deficit of $25 billion in FY20 to a surplus of $24 billion. in FY21. Total net flows, including FDI (foreign direct investment) as well as REIT (foreign portfolio investment), had reached a record high of $107 billion. RBI consciously swallowed massive dollars in open markets to prevent the rupee from appreciating below 72.0

Had it not happened, a sharp appreciation of the rupee would have hit investors with currency exposure, including those considering investing in India. It would also have hurt exports and made imports cheaper, further hurting domestic manufacturers during a pandemic. So, it looks like RBI did the right thing.

Now what?

Currently, we are in a completely opposite situation. We are currently witnessing huge currency outflows. Our FY23 current account (CAD) deficit could be around $100 billion. Amid ongoing geopolitical tensions and supply chain issues, we don’t see a major return to these flows anytime soon. So, should RBI now do the opposite and use its coffers to sell dollars to stop the rupee’s fall now?

We do not believe that RBI will intervene too much to use its foreign exchange reserves to fight depreciation as this could lead to external instability. Even though RBI has large foreign exchange reserves of about $600 billion, which is about 20% of GDP, but any drop below 15% (to $450 billion) could cause panic.

So the RBI can let the INR weaken gently. Why is it so? To correct the overvaluation of the INR in terms of the REER and somehow prepare for possible stress scenarios through an improvement in the national economy and an increase in exports (helped by the weakness of the rupee). This could well mean that the USDINR weakens further or even breaks through 80.

Another reason why the RBI may not be intervening much is that the depreciation of the Rupee is attracting many FIIs through both the FDI and REIT routes. Historically, each round of rupee depreciation was followed by a stock market rally. Thus, RBI could let the Indian rupee stabilize on its own without too much intervention for change.

This policy seems very ad hoc, and we couldn’t agree more. It is high time that we reflect on the implementation of a global currency management policy, aligned with monetary policy to better prepare us in these difficult times.

Disclaimer: The above analysis is just for informational purposes.

How Inflation Erodes The Value Of Your Money – Forbes Advisor UK Tue, 21 Jun 2022 11:50:26 +0000

The inflation rate has made headline news in the last few months, reaching its highest level – 9% – in 40 years.

Rising food and energy prices have contributed to the current squeeze on the cost of living, together with the Bank of England increasing interest rates to try to control inflation.

Here’s a look at how inflation erodes the value of your money, along with the current outlook for inflation and interest rates.

What is inflation?

Inflation is the term used to describe the increase in prices over time. Tea missed of inflation measures how quickly prices of goods and services are rising.

The inflation rate is a way of measuring the decline in the purchasing power of money over time, based on the following terms:

  • Nominal value: the ‘face’ value of money
  • Real value: the ‘relative’ value of money in terms of the goods and services that you are able to buy with the money.

Let’s take a look at an example. You have £100 and, over the next year, the inflation rate is 10%. At the end of the year, the nominal or face value of your money remains at £100 (you still have £100 in your pocket).

But thanks to inflation, after 12 months you’d need to spend £110 to buy what £100 would have bought you a year earlier.

Another way of looking at it is that your original £100 is ‘worth’ 10% less than it was a year ago.

How is inflation measured?

The Office for National Statistics (ONS) measures the price of a ‘basket’ of goods and services every month. The overall price of this ‘basket’ is compared to the price one year ago, and the rate of inflation is calculated as the percentage change in price.

There are three main measures of inflation:

  • Consumer Price Index (CPI): the headline measure of inflation which includes over 700 everyday items such as food and drink, clothes and transport, car repair and utility services, along with larger items such as a car and holiday.
  • Consumer Prices Index with housing costs (CPIH): a variation of CPI which includes an estimate for housing costs, such as interest payments on mortgages and council tax.
  • Retail Price Index (RPI): previously used as the headline measure of inflation, this has not been classified as an official National Statistic since 2013 due to shortcomings in its basis of calculation. RPI includes housing costs, and as a result, tends to be higher than CPI.

Why does the type of inflation measure matter? Well, the CPI is the measure of inflation used as the basis for the Bank of England’s interest rate decisions. It’s also part of the ‘triple lock’ calculation which determines the annual state pension increase.

However, the RPI is still used as the basis for some pension scheme increases, index-linked gilt payments and rail fares. The government intends to phase out the use of RPI by 2030, which could result in lower price increases in these items.

How has inflation changed over time?

On the whole, inflation has remained fairly stable in the UK over the last 30 years, as shown in the graph below:

Source: ONS data, CPI data remodeled for comparison purposes

The government sets an inflation target of 2% and the Bank of England is tasked with achieving this target using monetary policies including interest rates. The inflation rate exceeded this target from 2007 to 2013, due in part to rising commodity prices and an increase in the cost of imports due to the devaluation of the pound.

However, inflation has soared in the last 12 months, rising from 2% to its current 30 year-high of 9.0% (CPI, as at April 2022). This is the result of a combination of factors, including rising prices for electricity, gas and petrol, supply constraints from lockdowns in China and an increase in food prices, partly due to war in Ukraine.

How has inflation increased the cost of everyday items?

Although average inflation has been just over 2% since 1990, this still has a cumulative effect on the price of items over time. And some products and services have experienced above-inflation price rises.

These are the average prices of selected products over the last 30 years:

The cost of milk and bread has increased more than ten-fold since 1970, while bananas are one of the few items to fall in price since 1995. The biggest increase is in the cost of petrol, which has tripled since 1995.

Which items have increased the most in cost in the last year?

The inflation rate shows average price increases, however, some products and services have experienced above-average inflation.

Let’s take a look at some of the supermarket products with the highest rate of inflation over the last year:

Consumers have also faced “shrinkflation” where products have reduced in size without a corresponding reduction in price. For example, some crisp manufacturers have reduced the number of packets in their multi-packs of crisps.

There has been criticism of this practice as customers may not realize that they are effectively paying higher prices relative to the size of the product.

Why is inflation a problem?

The UK government sets a target inflation rate of 2%, as high inflation can cause wide-scale problems for a country’s economy.

Hyperinflation refers to an uncontrollable rate of inflation, often defined as over 50% per month and often occurs when there is a significant increase in the supply of money that is not backed by economic growth.

Hyperinflation results in a rapid devaluation in the local currency against foreign currencies, while individuals start to buy durable goods, such as consumer appliances, to avoid paying higher prices in the future.

This creates a vicious cycle of rising prices, which may ultimately cause economic collapse, as in Zimbabwe.

How is inflation controlled in the UK?

The Bank of England uses interest rates as a tool to control inflation. Higher interest rates make it more expensive for people to borrow money and makes saving money more attractive. Both of these factors result in people spending less.

In theory, prices are a function of supply and demand – if demand for products and services falls, this should result in prices rising less quickly, remaining the same or even falling.

Interest rates in the UK have been at historically low levels of below 1% for the last decade, as shown in the graph below. However, the Bank of England has increased interest rates on five occasions since December, with the current base rate standing at 1.25%.

Source data: Bank of England

The Bank of England is expected to continue to raise interest rates this year to reduce inflation. Independent research provider Capital Economics forecasts that the base rate will peak at 3.0% in mid-to-late 2023, before falling slightly to 2.5% in 2024.

How does inflation erode the value of your money?

We’ve calculated the impact of inflation on the real value of money, as follows:

Inflation in the UK has averaged just over 2% per year since 1990, meaning that it would have taken over 30 years for the real value of your money to halve.

However, based on the current inflation rate of 9.0% (as at April 2022), the equivalent time taken would be only eight years. What’s more, if inflation reaches 10% as forecast, this period of time would fall even further to just seven years.

While reducing expenditure on everyday items may help households to reduce the impact of high inflation, this is not the case for money held in savings accounts.

According to the latest Bank of England figures, the average interest rate on new savings accounts is 0.9%. With the current inflation rate of 9.0%, money in savings accounts is losing 7.4% in real terms each year.

Although stock markets may also be impacted by high inflation, they have historically delivered superior returns to cash-based investments.

Research by AJ Bell shows that a saver using their entire ISA allowance from 2011 to 2020 would have a cash ISA worth £125,000 in real terms. However, investing in the average global stock market fund would have produced an equivalent pot worth £196,000 in real terms.

Rupee rises 12 paise to 77.93 against the dollar as crude oil prices fall Mon, 20 Jun 2022 05:48:00 +0000

The rupiah strengthened 12 paises to 77.93 against the US dollar at the opening of trade on Monday, as lower crude oil prices supported the local unit.

However, continued outflows of foreign funds, a lackluster trend in domestic equities and a strong U.S. dollar overseas limited the gain, traders said.

On the interbank exchange, the rupee opened strongly at 77.98 against the US dollar, then rose slightly to quote 77.93, registering a rise of 12 paise during the last close.

During the previous session, the Rupee advanced 5 paise to settle at 78.05 against the US Dollar.

Meanwhile, the dollar index, which measures the strength of the greenback against a basket of six currencies, fell 0.30% to 104.38.

The global oil benchmark, Brent futures, fell 0.26% to $112.83 a barrel.

The Indian rupee opened slightly stronger against the US currency after crude oil prices suffered the biggest drop in more than a month on concerns over demand prospects amid a weak outlook. economics, said Sriram Iyer, senior research analyst at Reliance Securities.

Meanwhile, most Asian and emerging market peers started slightly stronger on Monday morning and supported local unity.

However, the dollar remained strong and persistent portfolio outflows could limit the rupiah’s appreciation bias, Iyer noted.

On the domestic stock market front, the 30-stock Sensex traded 85.22 points or 0.17% lower at 51,275.20, while the broader NSE Nifty fell 39.35 points or 0, 26% to 15,254.15.

Foreign institutional investors were net sellers in the capital market on Friday as they unloaded shares worth Rs 7,818.61 crore, according to exchange data.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Loyalty Ventures Inc. Provides – Sat, 18 Jun 2022 11:27:55 +0000

DALLAS, June 08, 2022 (GLOBE NEWSWIRE) — Loyalty Ventures Inc. (LYLT), a leading provider of data-driven consumer loyalty technology solutions, today provided an update on its program developments AIR MILES Reward (“AIR MILES MILES”).

The company disclosed that its segment of the AIR MILES Reward Program and AIR MILES sponsor Sobeys were unable to match extension terms; therefore, Sobeys has notified its intent to exit the program region by region, beginning with Atlantic Canada, between August and the first quarter of 2023. Management is confident in AIR MILES’ ability to convert this development into a growth opportunity in the medium term.

Charles Horn, Chief Executive Officer, said, “Metro, our long-time sponsor of AIR MILES, remains committed to the AIR MILES Coalition and will continue to welcome the millions of customers who shop and redeem at their stores where the Program AIR MILES reward is offered. offered, namely Ontario, the most populous province in Canada. Metro intends to work closely with AIR MILES to continue to offer the best value to its customers in their grocery stores or pharmacy in order to accumulate and redeem their AIR MILES reward miles with from Metro. Additionally, AIR MILES will have the ability to expand into adjacent vertical markets, including mass merchants, convenience stores, dollar stores and other retailers that were previously excluded by the terms of the Sobeys contract. We are in active discussions with grocers as well as with vertical markets that were previously inaccessible to us. »

The Company anticipates that the primary impact of this development in 2022 will be on the number of AIR MILES reward miles issued, as Sobeys represented approximately 10% of Loyalty Ventures’ adjusted EBITDA in 2021. Given the uncertainty associated with the timing of the transition from Sobeys’ additional regions and currency and program timing issues often associated with its BrandLoyalty business, Loyalty Ventures will reassess its 2022 revenue and EBITDA guidance when there is more clarity, which management hopes to have when it releases its second-quarter results.

Meanwhile, AIR MILES is moving forward with its programs to increase consumer engagement through investments in the AIR MILES App and improving the Collector Value Proposition in-store and online. For sponsors, AIR MILES’ capital investment enables expanded access to data, better personalization of content and accelerates the development of its media platform. The recent renewal of our five main sponsors, American Express, was an important vote of confidence, and we look forward to more positive developments in the months ahead. Additionally, AIR MILES continues to expand the Collector value proposition and add highly sought-after brands to, the online shopping portal where consumers can earn miles by shopping at hundreds of stores online. popular line, including Amazon, Samsung, Sephora, Uniqlo and Suite. This reflects the success of our strategy to introduce more flexible models to bring value to both collectors and brands.

About Loyalty Ventures Inc.
Loyalty Ventures Inc. (LYLT), an S&P SmallCap 600 company, is a leading provider of technology and data-driven consumer loyalty solutions. We help partners achieve their strategic and financial goals, including increasing consumer basket size, buyer traffic, frequency, digital reach, and improving program reporting and analytics.

We help financial service providers, retailers and other consumer-facing businesses create and increase customer loyalty across multiple touchpoints, from traditional to digital, mobile and emerging technologies. We own and operate AIR MILES® Reward Program, Canada’s most recognized loyalty program, and Netherlands-based BrandLoyalty, a global provider of targeted, tailored and campaign-based loyalty solutions for grocers and other high-frequency retailers.

Through our AIR MILES Reward Program, AIR MILES Collectors earn AIR MILES from over 300 top Canadian, global and online brands and at thousands of retail and service locations across the country. This business powers an unparalleled data asset which, combined with world-class analytics and marketing capabilities, enables clients to accelerate their marketing activities and their return on investment. AIR MILES offers Collectors the flexibility and choice to use AIR MILES on aspirational rewards such as merchandise, travel, events or attractions or, instantly, in-store or online, through AIR MILES Cash at Locations participating partners. For more information, visit: After celebrating the issuance of its 100 billionth thousand in 2021, AIR MILES invites Canadians to visit the Program on Facebook, Instagram and Twitter.

BrandLoyalty delivers winning loyalty campaigns by connecting high-frequency retailers, brand partners and buyers. BrandLoyalty is changing buyer behavior in high-frequency retail around the world, both transactionally and emotionally. Find out more via or at LinkedIn and Youtube.

More information about Loyalty Ventures can be found at

Caution Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements give our expectations or predictions of future events and can generally be identified by the use of words such as “believe”, “expect”, “anticipate”, “estimate”, “intend”. to”, “project”, “plan”. ,” “likely”, “may”, “should” or other words or phrases of similar significance. Likewise, statements that describe our business strategy, outlook, objectives, plans, intentions or goals are also forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make and advice we give regarding our expected operating or financial results and future economic conditions. , including but not limited to changes in geopolitical conditions, currency exchange rate fluctuation, market conditions and COVID-19 or other impacts related to reduced demand or customer changes , supply chain disruption in regards to our rewards, disruptions in the airline or travel industries, and labor shortages due to quarantine.

We believe our expectations are based on reasonable assumptions. Forward-looking statements are, however, subject to a number of risks and uncertainties that could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release, and no assurance can be given that our expectations will turn out to have been correct. These risks and uncertainties include, but are not limited to, the factors set forth in the Risk Factors section of (1) our Form 10-K for the most recently completed fiscal year and (2) any updates in item 1A, or elsewhere, in our quarterly reports on Form 10-Q filed for periods subsequent to this Form 10-K or any update thereof. Our forward-looking statements speak only as of the date they are made, and we undertake no obligation, other than as required by applicable law, to update or revise any forward-looking statements, whether as a result of new information, subsequent events, anticipated or unforeseen or other circumstances.

Investor contacts:
Lynn Morgan
[email protected]

Loyalty-Ventures-Inc-.png ]]> Dow drops nearly 200 points as US stocks fall in volatile trade Fri, 17 Jun 2022 15:17:00 +0000

U.S. stocks fell late Friday morning with the Dow Jones Industrial Average down more than 200 points as markets headed for their worst weekly decline since the start of 2020.

How are stock index futures traded?
  • S&P 500 SPX,
    fell 26.4 points, or 0.7%, to 3,640.

  • Dow Jones DJIA Industrial Average,
    lost 244 points, 0.8%, to 29,682

  • Nasdaq Composite COMP,
    was essentially flat at 10,650.

On Thursday, Dow DJIA industrialists,
fell 2.4% to end at 29,927.07, the lowest since December 2020, for both this index and the S&P 500 SPX,
which closed down 3.3% at 3,666.77. The Nasdaq Composite COMP,
fell 4.1% to 10,646.10, its lowest level since September 2020, according to Dow Jones Market Data.

What drives the markets?

U.S. stocks opened higher early on Friday, but then fell as oil prices extended their declines and the “quadruple witch” – the simultaneous expirations of stock index futures, stock index options, stock options and single stock futures – have contributed to trading volatility. Joe Saluzzi, co-head of equity trading at Themis Trading, told MarketWatch on Friday that the combination of these two factors is weighing on stocks.

He speculated that there could be more losses ahead as the CBOE Volatility Index, commonly referred to as the VIX, sat at 33, still below a reading of 40 that would indicate genuine investor capitulation. . The S&P 500 energy sector was the worst performer on Friday, down more than 4%, while the US oil benchmark WBS.1,
fell more than 5% to trade at around $109 a barrel.

“It was a bad week, it was a really bad week,” Saluzzi said. “The Federal Reserve certainly didn’t trust us this week…we’re kind of stuck right now.”

The losses come as U.S. markets close on Monday for the June 19 public holiday.

As Saluzzi mentioned, investors are still trying to rein in Wednesday’s Fed interest rate hike, the largest since 1994. Markets face bruising weekly losses, S&P 500 down 6% this week from Thursday and heading for its biggest weekly decline since March 20, 2020, according to Dow Jones Market Data.

A mixed bag of data this week raised concerns about a slowing U.S. economy, Saxo Bank strategists noted in a note on Friday. Stock traders can’t decide whether to ‘celebrate weak data as something that will eventually drive US yields lower and see the Fed’s tightening pace eventually reverse or worry about weak data because of the implications for corporate earnings,” they added. On Friday, investors received May’s reading on U.S. industrial production, which came in below expectations but remained in positive territory, pointing to a fifth month of growth.

Saxo said the next data points to watch will be the preliminary services and manufacturing PMI surveys for June, due next week.

The yield of the 10-year Treasury note TMUBMUSD10Y,
continued to fall early on Friday, falling another 5 basis points to 3.26%, after the biggest two-day drop in three months on Thursday for him and the 2-year yield TMUBMUSD02Y,
The latter is up 2 basis points to 3.18%. The Treasury yield curve remained inverted, with 5- and 7-year Treasury yields higher than the 30-year long bond yield.

On Friday, investors heard from Chairman Jerome Powell, who delivered a keynote address at the inaugural conference on the International Roles of the U.S. Dollar at 8:45 a.m. EST. Powell said that “the Fed is ‘very focused on getting inflation back to our 2% target’, but since his remarks focused primarily on the role of the dollar as the world’s reserve currency, his comments did not offered no new perspective on the outlook for monetary policy.

And to cap off a busy week for central banks, the Bank of Japan bucked the trend of central bank monetary tightening this week and left its key interest rates unchanged, causing the yen to fall sharply USDJPY,
which was down almost 2% at 134.80 against the dollar. BOJ Governor Haruhiko Kuroda voiced concerns about the yen’s rapid weakening at a press conference after the meeting.

Lily: Here’s what’s at stake for markets as the Bank of Japan sticks to its dovish course

The Swiss National Bank and the Bank of England both raised their benchmark interest rates this week, while the European Central Bank announced a new mechanism to prevent bond yields from the most indebted countries in the euro zone. to increase too quickly.

Lily: ‘The opposite of policy coordination’: Swiss National Bank and Bank of England raise interest rates after Fed hikes

Which companies are targeted?
  • Adobe Inc.
    shares fell more than 3% after an adjustment to earnings forecasts.

  • Shares of Mereo BioPharma Group
    climbed 60% to trade north of 50 cents after The Times reported, without attribution, that AstraZeneca PLC

    is considering a bid for the London-based, US-listed biotech.

  • A handful of oil and gas companies, including Diamondback Energy
    and Devon Energy
    were among the biggest declines due to the evolution of oil prices.

  • U.S.-listed shares of China-based companies posted big and wide gains on Friday, after Reuters reported that China’s central bank had accepted Ant Group’s request to set up a financial holding company. Ali Baba
    shares rose more than 7% on the news.

  • Revlon REV shares,
    jumped more than 60% following reports that Indian conglomerate Reliance Industries was considering buying the struggling cosmetics company.

How are other assets trading?
  • The ICE US Dollar Index DXY,
    a measure of the currency against a basket of six major rivals, rose 1%.

  • BitcoinBTC USD,
    was lower at $20,888.

  • Oil futures were higher, with US benchmark CL.1,
    up 2% to $117.6 a barrel. GC00 gold futures,
    were down slightly to $1,847 an ounce.

  • The Stoxx Europe 600SXXP,
    increased by 0.7%.

  • The Shanghai Composite SHCOMP,
    rose 0.9%, while the Hang Seng HSI index,
    rose 1.% and Japan’s Nikkei 225 NIK,
    fell 1.7%.

Dollar eases ahead of Fed interest rate decision Wed, 15 Jun 2022 14:51:00 +0000

NEW YORK, June 15 (Reuters) – The dollar fell slightly against a basket of currencies on Wednesday but remained close to a two-decade high hit in the previous session as traders awaited a rate decision. interest from the US Federal Reserve later in the session.

An ad hoc policy meeting of the European Central Bank allowed the euro to rise slightly, maintaining pressure on the American currency.

A warmer-than-expected U.S. inflation report on Friday bolstered expectations that the Fed will raise interest rates more than expected, helping to boost investors’ appetite for riskier assets, thus lifting the safe-haven dollar.

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According to Refinitiv’s Fedwatch tool, almost 90% are expected to rise by 75 basis points following a two-day meeting of the US central bank’s Federal Open Market Committee (FOMC) on Wednesday. .

But with such an interest rate hike already expected, the dollar could struggle to appreciate after the Fed’s move, some analysts said.

“The slight retracement in the Broad Dollar this morning is consistent with the idea that market expectations have gotten out of hand for the Federal Reserve and that the most likely outcome for US rates markets is disappointment,” Simon Harvey said. , head of FX analysis at Monex Europe.

Against a basket of currencies, the dollar was down 0.06% at 105.23, but close to the 2-decade high of 105.65 hit on Tuesday.

The dollar found little support in data that showed U.S. retail sales unexpectedly fell in May as motor vehicle purchases fell amid widespread shortages and record oil prices. fuel have moved spending away from other goods. Read more

The euro rose against the greenback earlier in the session following news of a surprise ECB meeting, which some traders hoped would resolve the risk of fragmentation in the region, but fell. gave up most of those gains in a short time.

The so-called risk of fragmentation refers to the fear that the ECB’s monetary policy actions will affect the 19 countries that make up the euro zone differently, with some countries seeing a significant rise in bond yields disconnected from economic fundamentals.

The European Central Bank will distort the reinvestment of maturing debt to help more indebted members and design a new instrument to stop fragmentation, it said on Wednesday.

“The ECB meeting provided very little additional information compared to last week’s policy statement,” said Harvey of Monex Europe.

“Markets now know that the central bank is going to look into the anti-fragmentation tool more quickly, but beyond that, today’s announcement really didn’t deliver anything tangible for excite the euro bulls,” he said.

The euro rose 0.08% to $1.0422, after hitting 1.0507 earlier in the session.

Rising U.S. rates versus Japanese yields at record lows weighed on the yen, which hit a new 24-year low of 135.60 to the dollar early in the session before erasing losses to settle. trade up about 0.8% against the greenback.

The pound on Wednesday recovered from its lowest level against the dollar since March 2020, rising 0.77% to $1.2089, but the reprieve may prove temporary as Britain’s economic growth slows and a potential trade conflict with the European Union weighing on the currency. Read more

In cryptocurrencies, bitcoin slid to a fresh 18-month low of $20,076.05, before paring losses to trade down 3.62% at $21,288.46, taking with it higher prices. smaller tokens and worsening a market crash triggered by crypto lender Celsius this week, freezing client withdrawals. Read more

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Reporting by Saqib Iqbal Ahmed Editing by Nick Zieminski

Our standards: The Thomson Reuters Trust Principles.

The US dollar and Russian ruble are trading at all-time highs as currency markets remain unaffected by inflation concerns Tue, 14 Jun 2022 07:53:40 +0000

As broader financial markets worry about inflation and possible further tightening, the U.S. dollar hit its highest level since November 2002. Specifically, the trade-weighted U.S. dollar index hit a 20-year high, an index that measures the performance of the dollar against a basket of other currencies, including the euro, yen and pound.

Likewise, the Bloomberg Dollar Spot Index, an additional measure of dollar strength that tracks its performance against ten global currencies, hit its highest level since April 2020, when the Covid-19 scare began.

Meanwhile, the Russian ruble remains the best-performing currency this year, after the Russian government imposed capital controls, although few could have gained on this trade.

Defend the currency

Moreover, the actions taken by Russia after the imposition of Western sanctions apparently helped the currency avoid disaster.

Exporters have been forced to sell currency, and Russia requires buyers of its natural gas to pay for it in rubles. What is even stranger is that Turkey and Argentina tried similar measures to control their currencies and did not have the same effect at all.

Performance of the Russian ruble against the US dollar Source: Twitter

Disconcerting event

Currently, the idea that the recovery of the ruble is mainly linked to the increase in commodity prices is the prevailing opinion among experts such as Tatiana Orlova, chief emerging markets economist at Oxford Economics, who shared her opinion. speaking to CBS News. Since oil and gas which were at high levels before the war in Ukraine jumped exponentially after the Russian invasion.

“Commodity prices are currently very high, and even though there is a drop in the volume of Russian exports due to embargoes and sanctions, the increase in commodity prices more than compensates for these declines,” he said. she declared.

Overall, it is difficult to assess the duration of the rally of the ruble and the same can be said of the rise in the value of the US dollar.

Inflation is eating away at consumers’ purchasing power and energy prices are high. Moreover, the brain drain and the lack of trading partners with the West could put additional pressure on Russia, which should limit the rise of the ruble.

Disclaimer: The content of this site should not be considered investment advice. The investment is speculative. When you invest, your capital is at risk.