Citigroup at risk of posting quarterly loss
Citigroup shares were down more than 1% after the bank warned of charges tied to the drop in the Argentine peso, along with the company’s reorganization, were greater than expected.
The bank said fourth-quarter results were hurt by $880 million in currency conversion losses from Argentina’s currency and another $780 million from Citigroup’s restructuring moves.
C falls
— Fred Imbert, Hugh Son
KB Home falls after earnings report
Shares of KB Home fell more than 2% after the homebuilder posted its fourth-quarter results.
The company earned $1.85 per share on revenue of $1.67 billion. Analysts polled by LSEG expected a profit of $1.69 per share on revenue of $1.62 billion. However, the average selling price for KB Home fell 4.5% to $487,300 during the quarter.
KBH falls
Aussie trade data shows imports dropped 7.9% in November
Australia’s imports dropped 7.9% in November 2023, trade data showed.
Goods imports fell by 2,988 million Aussie dollars, led by non-industrial transport equipment, while exports rose AU$789 million or 1.7%, driven by shipments of coal, coke and briquettes.
Imports declined more sharply than the 2.9% fall expected by a Reuters poll, while exports growth topped expectations of a 0.8% rise.
Exports also hit an eight month high in November.
Australia’s S&P/ASX 200 index had gained 0.50% by the last hour of trading.
— Shreyashi Sanyal
Bank of Korea keeps benchmark lending rate unchanged for eighth straight time
Rhee Chang-yong, governor of the Bank of Korea, at an event during the spring meetings of the International Monetary Fund (IMF) and World Bank in Washington, DC, US, on Friday, April 14, 2023.
Bloomberg | Bloomberg | Getty Images
The Bank of Korea left its benchmark lending rate unchanged for the eighth time in a row Thursday.
South Korea’s central bank held rates at 3.50%, in line with expectations of economists polled by Reuters. Investors now await Governor Rhee Chang-yong’s news conference at around 1110 Korea time.
The country’s inflation has shown signs of easing, with consumer price growth coming in at 3.2% last month.
The BOK is targeting to bring inflation down to 2% by end 2024 or early 2025.
— Shreyashi Sanyal
Crypto stocks jump after SEC greenlights U.S. bitcoin ETFs
House committee demands a hearing with SEC Chair Gensler after X account controversy
The House Financial Services Committee now wants SEC Chair Gary Gensler to provide details on what led up to the regulator’s X account posting a false social media post on bitcoin ETFs.
“To better understand how this breach occurred and how the SEC will ensure it cannot happen again, please provide a briefing to Committee staff no later than January 17, 2024,” wrote committee chairman Patrick McHenry in a Jan. 10 letter to Gensler.
On Tuesday, the Securities and Exchange Commission’s X account made a false post, saying that the regulatory agency had approved bitcoin ETFs for trading. The price of bitcoin initially spiked but then slid below $46,000.
The SEC said that its account had been compromised. Late Tuesday evening, X said that a preliminary investigation showed that “an unidentified individual” obtained control over a phone number associated with the SEC’s account.
“This failure is unacceptable, and it is disturbing that your agency could not even meet the standard you require of private industry,” McHenry said in his letter.
Ultimately, the SEC on Wednesday approved rule changes to allow bitcoin ETFs.
–Darla Mercado, Christina Wilkie
Bitcoin ETF rule change can ‘reshape the dynamics of cryptocurrency investments,’ Moody’s Investors Services SVP says
Approval of a rule change from the Securities and Exchange Commission that allows bitcoin exchange-traded funds to be made in the U.S. can shake up the crypto investing landscape, according to Rajeev Bamra, senior vice president of digital finance at Moody’s Investors Service.
The rule has been closely watched because it can give regular investors access to crypto currency. Bamra said the change may prompt more interest from institutions, which can in turn help reduce volatility in the market.
“The approval of spot bitcoin ETFs by the SEC has the potential to simplify and secure Bitcoin investments for a broader investor base, which may reshape the dynamics of cryptocurrency investments,” he said. “It could lead to substantial inflows from institutions interested in entering the cryptocurrency market as it may provide a reliable and transparent price discovery mechanism. This could result in a more stable and liquid crypto market, representing a positive development for the digital finance ecosystem.”
Bamra noted that bitcoin and ether made crypto the best performing asset class in 2023. However, he said global monetary policy and the availability of crypto to institutional investors will help determine if that trend continues.
— Alex Harring