Providing custody of assets is boring but an essential task in the traditional investing industry. Ensuring the security of customers' stock and bond holdings is an easy task.

However, the almost 2 trillion-dollar crypto market is rife with activity, the services on crypto custody can be as much as ten times more expensive than protecting more conventional assets, such as cash and stocks.

As a result, this new crypto offering is a promising market.

Startups, wall street banks, and other companies are seeking to develop digital assets and into these services. And custody is far from dull.

However, regulatory uncertainties around digital assets have pushed traditional financial businesses in a holding pattern.

On the other hand, crypto-native firms Bitgo and Coinbase global have been among the top service providers so far.

With players like Fireblocks projecting a 30 per cent yearly growth rate, the industry is nonetheless appealing despite being only a 300-million-dollar market at the moment.

Major global custodian banks, including Bny Mellon, state street, and Citigroup have either initiated cryptocurrency custody operations or shown interest in doing so.

Custody concerns have persisted throughout crypto's history, with many early adopters embracing the mantra "Not your keys, not your coins."

Custody firms have helped to lower the risk of theft and hacks. So far, wall street efforts have been full of fits and starts.

Bny announced its digital-asset custody infrastructure in 2022 but is yet to expand the endeavor. In 2023, Nasdaq halted its crypto custody undertakings.

Still, companies are moving ahead with trials, in addition, many plans revolve around safeguarding tokenised assets.

Providing custody of assets is boring but an essential task in the traditional investing industry. Ensuring the security of customers' stock and bond holdings is an easy task.

Providing custody of assets is boring but an essential task in the traditional investing industry. Ensuring the security of customers' stock and bond holdings is an easy task. However, the almost 2 trillion-dollar crypto market is rife with activity, the services on crypto custody can be as much as ten times more expensive than protecting more conventional assets, such as cash and stocks. As a result, this new crypto offering is a promising market. Startups, wall street banks, and other companies are seeking to develop digital assets and into these services. And custody is far from dull. However, regulatory uncertainties around digital assets have pushed traditional financial businesses in a holding pattern. On the other hand, crypto-native firms Bitgo and Coinbase global have been among the top service providers so far. With players like Fireblocks projecting a 30 per cent yearly growth rate, the industry is nonetheless appealing despite being only a 300-million-dollar market at the moment. Major global custodian banks, including Bny Mellon, state street, and Citigroup have either initiated cryptocurrency custody operations or shown interest in doing so. Custody concerns have persisted throughout crypto's history, with many early adopters embracing the mantra "Not your keys, not your coins." Custody firms have helped to lower the risk of theft and hacks. So far, wall street efforts have been full of fits and starts. Bny announced its digital-asset custody infrastructure in 2022 but is yet to expand the endeavor. In 2023, Nasdaq halted its crypto custody undertakings. Still, companies are moving ahead with trials, in addition, many plans revolve around safeguarding tokenised assets.

Crypto custody lures wall street bankers

Things got off to a horrible start. August, however, will be remembered as yet another monumental display of faith by wall street in its capacity to predict future events. This comes four weeks after the greatest volatility meltdown since the pandemic.

August marks a grand gesture of confidence by Wall Street | World Business Watch | WION News

Asian stocks followed Wall Street's recovery as investors turned their attention from Joe Biden's re-election campaign ending to the start of the US tech earnings season.

Asian stocks advance as Wall Street rebounds

Wall Street's main indexes plummeted Friday on heavy selling of technology shares and mixed earnings.

The losses were compounded by a far-reaching cyber outage that hit shares of cybersecurity company CrowdStrike hard, off 11.2 per cent to the lowest in more than two months.

The CrowdStrike outage affected its product update for Microsoft's Windows Operating System, paralysing activities across several industries.

Major US airlines were ordering ground stops due to communication problems, while both the Euronext exchange and London Stock Exchange Group's Workspace news and data platform were hit by issues.

The LSEG later said its data and services were back online, but the initial disruptions had already dented investor sentiment.

Microsoft also slid 0.7 per cent, to over a one-month low, and extended its losses for a fourth consecutive day.

Microsoft's stock drop contributed to an overall rout in tech stocks. "Any hint of bad news because they're so priced to perfection is going to hurt these stocks," said Phil Blancato, CEO of Ladenburg Thalmann Asset Management.

Even so, Blancato cites CrowdStrike and Microsoft as two great long-term investment opportunities.

The latest turmoil comes after Wall Street experienced two bruising sessions, as investors grappled with second-quarter earnings reports and turned averse to the mega-caps that had broadly led the equity rally in 2024.

Big technology stocks moved in both directions, with Nvidia and Amazon.com down 1 per cent and 0.5 per cent, respectively, and Apple and Alphabet up 1 per cent apiece.

Chip stocks were another mixed bag, with U.S.-listed shares of Taiwan Semiconductor Manufacturing down nearly 1.5 per cent, and Arm Holdings rose 3 per cent. The Nasdaq Composite has dropped 3.5 per cent over the past two sessions, while the S&amp;P 500 has lost 2.1 per cent, putting the indexes on pace for weekly losses.

The VIX, Wall Street's so-called "fear gauge," hit its highest level since early May, reflecting investor unease.

Investors now turn to comments from Federal Reserve officials John Williams and Raphael Bostic for possible clues regarding future monetary policy. Markets are pricing in a 25-basis-point interest rate cut by September and two cuts by year-end.

The Dow Jones Industrial Average slid 179.14 points, or 0.44 per cent, to 40,485.88; the S&amp;P 500 dropped 2.69 points, or 0.05 per cent, to 5,541.90; and the Nasdaq Composite slipped 18.08 points, or 0.10 per cent, to 17,853.15 at 9:48 a.m. ET.

In contrast, other cybersecurity shares rose, with Palo Alto Networks 1.5 per cent higher and SentinelOne jumping 6.4 per cent. Eli Lilly jumped 2.6 per cent on news that China approved its weight-loss drug tripeptide.

Intuitive Surgical surged 8 per cent after reporting second-quarter earnings well above expectations. Those updates helped the S&amp;P 500 healthcare index lead sectoral gainers.

On the other hand, Netflix fell 1 per cent in choppy trading following the streaming service's forecast of third-quarter subscriber additions below expectations and lower than a year earlier.

Oilfield services provider SLB rose 1.3 per cent following strong second-quarter profits.

Based on the most recent reports, S&amp;P 500 corporations have posted an earnings beat rate of 85 per cent and an overall growth rate of 11.1 per cent.

However, market breadth was still soft. Declining issues outnumbered advancers during trading on both the NYSE and the Nasdaq.

(With inputs from Reuters)

Wall Street's main indexes plummeted Friday on heavy selling of technology shares and mixed earnings. The losses were compounded by a far-reaching cyber outage that hit shares of cybersecurity company CrowdStrike hard, off 11.

Wall Street's main indexes plummeted Friday on heavy selling of technology shares and mixed earnings. The losses were compounded by a far-reaching cyber outage that hit shares of cybersecurity company CrowdStrike hard, off 11.2 per cent to the lowest in more than two months. The CrowdStrike outage affected its product update for Microsoft's Windows Operating System, paralysing activities across several industries. Major US airlines were ordering ground stops due to communication problems, while both the Euronext exchange and London Stock Exchange Group's Workspace news and data platform were hit by issues. The LSEG later said its data and services were back online, but the initial disruptions had already dented investor sentiment. Microsoft also slid 0.7 per cent, to over a one-month low, and extended its losses for a fourth consecutive day. Microsoft's stock drop contributed to an overall rout in tech stocks. "Any hint of bad news because they're so priced to perfection is going to hurt these stocks," said Phil Blancato, CEO of Ladenburg Thalmann Asset Management. Even so, Blancato cites CrowdStrike and Microsoft as two great long-term investment opportunities. The latest turmoil comes after Wall Street experienced two bruising sessions, as investors grappled with second-quarter earnings reports and turned averse to the mega-caps that had broadly led the equity rally in 2024. Big technology stocks moved in both directions, with Nvidia and Amazon.com down 1 per cent and 0.5 per cent, respectively, and Apple and Alphabet up 1 per cent apiece. Chip stocks were another mixed bag, with U.S.-listed shares of Taiwan Semiconductor Manufacturing down nearly 1.5 per cent, and Arm Holdings rose 3 per cent. The Nasdaq Composite has dropped 3.5 per cent over the past two sessions, while the S&P 500 has lost 2.1 per cent, putting the indexes on pace for weekly losses. The VIX, Wall Street's so-called "fear gauge," hit its highest level since early May, reflecting investor unease. Investors now turn to comments from Federal Reserve officials John Williams and Raphael Bostic for possible clues regarding future monetary policy. Markets are pricing in a 25-basis-point interest rate cut by September and two cuts by year-end. The Dow Jones Industrial Average slid 179.14 points, or 0.44 per cent, to 40,485.88; the S&P 500 dropped 2.69 points, or 0.05 per cent, to 5,541.90; and the Nasdaq Composite slipped 18.08 points, or 0.10 per cent, to 17,853.15 at 9:48 a.m. ET. In contrast, other cybersecurity shares rose, with Palo Alto Networks 1.5 per cent higher and SentinelOne jumping 6.4 per cent. Eli Lilly jumped 2.6 per cent on news that China approved its weight-loss drug tripeptide. Intuitive Surgical surged 8 per cent after reporting second-quarter earnings well above expectations. Those updates helped the S&P 500 healthcare index lead sectoral gainers. On the other hand, Netflix fell 1 per cent in choppy trading following the streaming service's forecast of third-quarter subscriber additions below expectations and lower than a year earlier. Oilfield services provider SLB rose 1.3 per cent following strong second-quarter profits. Based on the most recent reports, S&P 500 corporations have posted an earnings beat rate of 85 per cent and an overall growth rate of 11.1 per cent. However, market breadth was still soft. Declining issues outnumbered advancers during trading on both the NYSE and the Nasdaq. (With inputs from Reuters)

Tech sell-off deepens as cybersecurity outage hits Wall Street

Goldman Sachs reported great profit growth in the second quarter, helped by robust underwriting of debt and fixed-income trading.

Earnings at the Wall Street giant more than doubled from a year earlier but came in well below a record level from the first quarter.

Such results attest to how strongly the US economy is recovering. The job empowered chief executives to make purchases, sell debt, and offer shares.

Excluding one-off charges, CEO comments on performance

CEO David Solomon was happy with the results. He noted "We are pleased with our solid second-quarter results.

Our overall performance in the first half of the year reflects strong year-on-year growth in both Global Banking &amp; Markets and Asset &amp; Wealth Management.

The earnings came out at $3.04 billion, or $8.62 a share, for the quarter ended June 30. In sharp comparison, last year it had earnings of $1.22 billion, or $3.08 a share.

Investment banking and trading fees soar

Goldman Sachs registered a 21 per cent increase in its investment banking fees. The same was $1.73 billion for the quarter.

The fees arising from mergers and acquisitions advisory became 7 per cent more. Its debt and stock underwriting fees soared by 39 per cent and 25 per cent respectively.

The whole FICC trading increased by 17 per cent while the whole FICC financing boosted the FICC financing. Its equities trading revenue also became 7 per cent higher.

Improved profitability in the entire sector

Some of the other major investment banks that showed outstanding results for their investment banking business are JPMorgan Chase and Jefferies Financial.

Based on data compiled by Dealogic, investment banking revenues surged by 17 per cent globally. It increased to $41.6 billion between January and June.

Shift back to core businesses

After its foray into consumer banking didn't pay off, Goldman has hunkered down and focused on the things it historically does best.

Most of that is investment banking and trading, a strategy shift that investors seem to be getting behind.

The firm's stock surged 24.4 per cent this year through Thursday, outpacing Morgan Stanley's 11.6 per cent gain and JPMorgan Chase's 20.5 per cent rise. Goldman shares fell slightly in choppy premarket trading, however.

Growth in asset and wealth management

The asset and wealth management division services to high net worth and institutional clients. It has seen its revenue rise by 27 per cent in Q2.

Goldman oversees $2.93 trillion in its funds. The bank received, earlier in July, the mandate to manage UPS's $43.4 billion retirement client peg.

Platform Solutions hosts a handful of consumer units. It has increased revenues by a low 2 per cent.

Challenges in card sector

Goldman Sachs took a $58 million charge in the second quarter for its credit card business with General Motors.

The company is expected to leave the partnership, as their talks are ongoing for GM to replace Goldman with Barclays.

Negotiations are also said not to achieve a positive solution in the future for Goldman's credit card partnership with Apple.

The Fed's annual stress test pointed to potential problems and noted that Goldman's potential losses are among the worst in a hypothetical scenario.

Dividend increase

Amid the turmoils, Goldman Sachs declared a quarterly dividend hike to $3 a share. That is from $2.75 previously.

The bank's provisions for credit losses have more than halved. They turned out to be $282 million in the second quarter. That is from $615 million a year prior.

(With inputs from Reuters)

Goldman Sachs reported great profit growth in the second quarter, helped by robust underwriting of debt and fixed-income trading. Earnings at the Wall Street giant more than doubled from a year earlier but came in well below a record level from the first quarter.

Goldman Sachs reported great profit growth in the second quarter, helped by robust underwriting of debt and fixed-income trading. Earnings at the Wall Street giant more than doubled from a year earlier but came in well below a record level from the first quarter. Such results attest to how strongly the US economy is recovering. The job empowered chief executives to make purchases, sell debt, and offer shares. Excluding one-off charges, CEO comments on performance CEO David Solomon was happy with the results. He noted "We are pleased with our solid second-quarter results. Our overall performance in the first half of the year reflects strong year-on-year growth in both Global Banking & Markets and Asset & Wealth Management. The earnings came out at $3.04 billion, or $8.62 a share, for the quarter ended June 30. In sharp comparison, last year it had earnings of $1.22 billion, or $3.08 a share. Investment banking and trading fees soar Goldman Sachs registered a 21 per cent increase in its investment banking fees. The same was $1.73 billion for the quarter. The fees arising from mergers and acquisitions advisory became 7 per cent more. Its debt and stock underwriting fees soared by 39 per cent and 25 per cent respectively. The whole FICC trading increased by 17 per cent while the whole FICC financing boosted the FICC financing. Its equities trading revenue also became 7 per cent higher. Improved profitability in the entire sector Some of the other major investment banks that showed outstanding results for their investment banking business are JPMorgan Chase and Jefferies Financial. Based on data compiled by Dealogic, investment banking revenues surged by 17 per cent globally. It increased to $41.6 billion between January and June. Shift back to core businesses After its foray into consumer banking didn't pay off, Goldman has hunkered down and focused on the things it historically does best. Most of that is investment banking and trading, a strategy shift that investors seem to be getting behind. The firm's stock surged 24.4 per cent this year through Thursday, outpacing Morgan Stanley's 11.6 per cent gain and JPMorgan Chase's 20.5 per cent rise. Goldman shares fell slightly in choppy premarket trading, however. Growth in asset and wealth management The asset and wealth management division services to high net worth and institutional clients. It has seen its revenue rise by 27 per cent in Q2. Goldman oversees $2.93 trillion in its funds. The bank received, earlier in July, the mandate to manage UPS's $43.4 billion retirement client peg. Platform Solutions hosts a handful of consumer units. It has increased revenues by a low 2 per cent. Challenges in card sector Goldman Sachs took a $58 million charge in the second quarter for its credit card business with General Motors. The company is expected to leave the partnership, as their talks are ongoing for GM to replace Goldman with Barclays. Negotiations are also said not to achieve a positive solution in the future for Goldman's credit card partnership with Apple. The Fed's annual stress test pointed to potential problems and noted that Goldman's potential losses are among the worst in a hypothetical scenario. Dividend increase Amid the turmoils, Goldman Sachs declared a quarterly dividend hike to $3 a share. That is from $2.75 previously. The bank's provisions for credit losses have more than halved. They turned out to be $282 million in the second quarter. That is from $615 million a year prior. (With inputs from Reuters)

Goldman Sachs' Q2 profit soars amid strong trading and underwriting performance

Wall Street banks on Friday punted on a healthier pipeline of deals and a notable rise in investment-banking activity while reporting quarterly earnings, even as they grapple with multiple headwinds and reasons for caution.

Reports of three big US banks heralded the start of the second-quarter earnings season. Deal flow has picked up from the drought since the pandemic. Volumes of mergers and acquisitions came in at $1.6 trillion globally in the first half of the year, a 20 per cent rise from a year ago, according to Dealogic data. Volumes in the equity capital market rose by 10 per cent in the same period.

Citigroup posted a 60 per cent increase in its investment banking revenue amounting to $853 million. At JPMorgan, investment banking fees rose 50 per cent, better than the company's earlier forecast of a rise of 25 per cent to 30 per cent. Wells Fargo investment banking revenue surged 38 per cent to $430 million.

Despite these gains, the stock market has reacted cautiously. Shares of Wells Fargo were down 6 per cent midday Friday after the bank missed analysts' estimates for interest income. Citi fell 1.5 per cent after investors complained about expenses and market share. JPMorgan was down 0.3 per cent, which analysts attributed to worries about costs and provisions.

The CFO of Citi, Mark Mason, has commented that, in his view, the pipeline of announced deals looks very strong and should materialise by the end of this year and into 2025. That makes it an indicator that there could be quite a good period ahead for investment banking.

"There are a number of factors that come into play, including the broader regulatory environment, including elections, including how the rate environment and inflation continues to evolve," Mason said. "But the important thing is we are well positioned as we look at announced deals."

Wall Street banks on Friday punted on a healthier pipeline of deals and a notable rise in investment-banking activity while reporting quarterly earnings, even as they grapple with multiple headwinds and reasons for caution.

Wall Street banks on Friday punted on a healthier pipeline of deals and a notable rise in investment-banking activity while reporting quarterly earnings, even as they grapple with multiple headwinds and reasons for caution. Reports of three big US banks heralded the start of the second-quarter earnings season. Deal flow has picked up from the drought since the pandemic. Volumes of mergers and acquisitions came in at $1.6 trillion globally in the first half of the year, a 20 per cent rise from a year ago, according to Dealogic data. Volumes in the equity capital market rose by 10 per cent in the same period. Citigroup posted a 60 per cent increase in its investment banking revenue amounting to $853 million. At JPMorgan, investment banking fees rose 50 per cent, better than the company's earlier forecast of a rise of 25 per cent to 30 per cent. Wells Fargo investment banking revenue surged 38 per cent to $430 million. Despite these gains, the stock market has reacted cautiously. Shares of Wells Fargo were down 6 per cent midday Friday after the bank missed analysts' estimates for interest income. Citi fell 1.5 per cent after investors complained about expenses and market share. JPMorgan was down 0.3 per cent, which analysts attributed to worries about costs and provisions. The CFO of Citi, Mark Mason, has commented that, in his view, the pipeline of announced deals looks very strong and should materialise by the end of this year and into 2025. That makes it an indicator that there could be quite a good period ahead for investment banking. "There are a number of factors that come into play, including the broader regulatory environment, including elections, including how the rate environment and inflation continues to evolve," Mason said. "But the important thing is we are well positioned as we look at announced deals."

Wall Street banks eye investment banking resurgence amid multifaceted economic challenges

Asian stocks opened higher today, buoyed by gains on Wall Street.

Japan’s Nikkei 225 rose 1 per cent, while South Korea’s Kospi climbed 0.3 per cent, driven by an increase in Samsung electronics despite ongoing union strikes.

Hong Kong’s Hang Seng index futures were slightly up, reflecting cautious optimism in the region.

In the US, the S&amp;P 500 and NASDAQ composite closed at all-time highs on Monday.

The S&amp;P 500 gained 0.1 per cent and the NASDAQ rose 0.3 per cent, driven by easing inflation pressures and investor optimism about the Federal Reserve's potential policy easing.

However, the Dow Jones industrial average dipped 0.1 per cent, indicating some market caution.

Crude oil prices fell to a one-week low this morning. Brent futures settled around 85 per dollar barrel, as Hurricane Beryl disrupted US Gulf Coast refineries and ports.

Analysts noted that hedging activities ahead of the storm were unwound, contributing to the price drop.

Additionally, hopes for a Gaza ceasefire added to the downward pressure on oil prices.

Gold prices also fell by more than 1 per cent in the previous session due to profit-taking after a previous rally and a shift towards riskier equities.

The precious metal’s decline followed investor speculation about potential US Federal Reserve interest rate cuts in September.

This week, markets will be closely monitoring Federal Reserve Chair Jerome Powell’s testimony before Congress, key inflation data with the June consumer price index on Thursday, and the producer price index on Friday.

Earnings reports from PepsiCo, Delta Air Lines, Citigroup, and JPMorgan Chase will also be pivotal in gauging market sentiment and economic health.

Asian stocks opened higher today, buoyed by gains on Wall Street. Japan’s Nikkei 225 rose 1 per cent, while South Korea’s Kospi climbed 0.3 per cent, driven by an increase in Samsung electronics despite ongoing union strikes.

Asian stocks opened higher today, buoyed by gains on Wall Street. Japan’s Nikkei 225 rose 1 per cent, while South Korea’s Kospi climbed 0.3 per cent, driven by an increase in Samsung electronics despite ongoing union strikes. Hong Kong’s Hang Seng index futures were slightly up, reflecting cautious optimism in the region. In the US, the S&P 500 and NASDAQ composite closed at all-time highs on Monday. The S&P 500 gained 0.1 per cent and the NASDAQ rose 0.3 per cent, driven by easing inflation pressures and investor optimism about the Federal Reserve's potential policy easing. However, the Dow Jones industrial average dipped 0.1 per cent, indicating some market caution. Crude oil prices fell to a one-week low this morning. Brent futures settled around 85 per dollar barrel, as Hurricane Beryl disrupted US Gulf Coast refineries and ports. Analysts noted that hedging activities ahead of the storm were unwound, contributing to the price drop. Additionally, hopes for a Gaza ceasefire added to the downward pressure on oil prices. Gold prices also fell by more than 1 per cent in the previous session due to profit-taking after a previous rally and a shift towards riskier equities. The precious metal’s decline followed investor speculation about potential US Federal Reserve interest rate cuts in September. This week, markets will be closely monitoring Federal Reserve Chair Jerome Powell’s testimony before Congress, key inflation data with the June consumer price index on Thursday, and the producer price index on Friday. Earnings reports from PepsiCo, Delta Air Lines, Citigroup, and JPMorgan Chase will also be pivotal in gauging market sentiment and economic health.

Asian stocks rise on Wall Street optimism; Eyes on Fed & economic data

Let's look at a concerning trend for Wall Street pros. The 24-hour stock trading boom. Wall Street pros are feeling uneasy about retail investors again. This time, though, it's not so much the deals they're making but the timing of those deals. Take a look at this report for more on this trend...

Wall Street rattled by 24-hour stock trading boom

Let's turn our attention to how markets opened this morning. Asian stocks rose as investors weighed the potential for interest rate cuts from the US Central bank after the fed chief signaled that the US Is once again on a disinflationary path. Also,... Asian indices got a boost from wall street stocks, which rose to record highs overnight.

S&P 500 ended above 5,500 for the first time in its history

It was an absolute disaster of a debate, particularly for Biden. The president struggled to respond to questions that should have been simple gimmes on Democratic-leaning themes; he was sometimes difficult to understand and occasionally nonsensical.

Dollar and Bitcoin rise on US Presidential election debate

We look at how markets opened this morning after a selloff on Wall Street overnight. Asian stocks edged higher to defy a mixed day on Wall Street as speculation gained that the tech sector rally may be running out of steam. Watch in for more details!

Asian stocks edged higher to defy the Wall Street selloff

NVIDIA's meteoric rise to become the world's most valuable company under the leadership of Jensen Huang is a tale of vision, perseverance, and unconventional wisdom. Founded in 1993, NVIDIA began its journey by developing graphics processing units that revolutionised the gaming industry. With his relentless focus on innovation, Huang steered the company through various technological waves.

How Nvidia rose to the top of Wall Street

Donald Trump may be the first former President convicted as a fellon, but Wall Street billionaires are rushing to back him for the White House.

Wall Street's rich bet on Trump

Let's look at how markets opened this morning. Asian stocks and bonds fell early on Thursday, mirroring declines in the US Wall Street stocks took a hit after another weak sale of treasuries.

Stocks fall as weak treasury sale lifts US Bond yields

The Dow Jones Industrial Average topped the 40,000 level for the first time Thursday, as U.S. stocks drifted higher to add to their records set a day before.

The Dow was up 106 points, or 0.3%, at 40,014, in midday trading. It made its last leap of 10,000 points in about three and a half years, as the U.S. economy and corporate profits crawled out of the crash caused COVID-19. They’ve continued to hold up so far despite the worst inflation in decades, the punishing effects of high interest rates and worries about a recession that seemed inevitable but hasn’t arrived.

The S&amp;P 500 index, which is much more widely followed on Wall Street and dictates the performance of many more 401(k) accounts than the Dow, was 0.2% higher, as of 11:40 a.m. Eastern time. The Nasdaq composite was up 0.2%. They also had rallied on Wednesday to all-time highs.

Walmart was one of the strongest forces lifting the market, and it rose 6% after reporting stronger profit for the latest quarter than analysts expected. It also said its revenue for the year could top the forecasted range it had earlier given.

Walmart’s strength could be an encouraging signal for the broader economy. Worries have been rising about whether U.S. households can keep up with still-high inflation, even if it’s not as bad as before, and more expensive credit-card payments, particularly those making lower incomes.

Target, which reports its quarterly results next week, climbed following Walmart’s report, along with other retailers like Dollar General and Dollar Tree. Each added at least 2.4%.

Chubb climbed 3.8% after Warren Buffett’s Berkshire Hathaway disclosed it had built an ownership stake in the insurer.

Stronger-than-expected profit reports have been one of the main reasons U.S. stock indexes jumped through May to records following a tough April. Another has been revived hopes that the Federal Reserve will be able to cut its main interest rate at least once or twice this year. The Fed has been keeping its federal funds rate at the highest level in more than two decades.

A string of worse-than-expected reports on inflation at the start of the year had put the potential for such cuts in jeopardy, but some more encouraging data has since arrived.

Treasury yields have eased in May as hopes rose that the economy could hit the hoped-for sweet spot, where it cools enough because of high interest rates to stifle inflation but not so much that it causes a bad recession. Yields were holding edging higher Thursday following some mixed data on the economy.

One report showed slightly more workers applied for unemployment benefits last week than economists expected, though the number remains low compared with history. Others said homebuilders broke ground on fewer projects last month than expected, manufacturing growth in the mid-Atlantic region was weaker than hoped and import prices rose more than forecast.

“Today’s numbers were in line with the overall theme of the week — nothing dramatic, but showing signs of a steady-to-cooling economy,” said Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley.

The yield on the 10-year Treasury ticked up to 4.36% from 4.35% late Wednesday. The two-year yield, which moves more closely with expectations for action by the Fed, rose to 4.77% from 4.72%.

On the losing end of Wall Street, Deere fell 3.2% despite reporting stronger profit for its latest quarter than expected. It cut its forecast for profit over the full fiscal year below analysts’ estimates, as farmers buy fewer tractors and other equipment.

Homebuilders fell following the weaker-than-expected report on housing starts. They gave back some of their big gains the day before, when hopes for lower mortgage rates had sent them sharply higher. Lennar fell 2.1%, and D.R. Horton slipped 2%.

GameStop and AMC Entertainment slid for a second straight day, pulling back further from their jaw-dropping starts to the week. They’ve been moving more on excitement drummed up by investors than any changes to their financial prospects.

GameStop fell 25.2%, though it’s still up nearly 69% for the week so far. AMC Entertainment lost 13.9%.

Under Armour swung from an early loss to a slight gain after it warned that its revenue will be likely down by “a low double-digit percentage rate” this upcoming fiscal year, citing weaker demand from wholesalers and “inconsistent execution across our business.” The company announced a restructuring plan to cut costs and also announced a program to buy back up to $500 million of its stock. It was up 1.1%.

In stock markets abroad, indexes were modestly lower in much of Europe after mostly rising in Asia. Hong Kong’s Hang Seng jumped 1.6% after reopening following a holiday, while Japan’s Nikkei 225 rose 1.4%.

The Dow Jones Industrial Average topped the 40,000 level for the first time Thursday, as U.S. stocks drifted higher to add to their records set a day before. The Dow was up 106 points, or 0.

The Dow Jones Industrial Average topped the 40,000 level for the first time Thursday, as U.S. stocks drifted higher to add to their records set a day before. The Dow was up 106 points, or 0.3%, at 40,014, in midday trading. It made its last leap of 10,000 points in about three and a half years, as the U.S. economy and corporate profits crawled out of the crash caused COVID-19. They’ve continued to hold up so far despite the worst inflation in decades, the punishing effects of high interest rates and worries about a recession that seemed inevitable but hasn’t arrived. The S&P 500 index, which is much more widely followed on Wall Street and dictates the performance of many more 401(k) accounts than the Dow, was 0.2% higher, as of 11:40 a.m. Eastern time. The Nasdaq composite was up 0.2%. They also had rallied on Wednesday to all-time highs. Walmart was one of the strongest forces lifting the market, and it rose 6% after reporting stronger profit for the latest quarter than analysts expected. It also said its revenue for the year could top the forecasted range it had earlier given. Walmart’s strength could be an encouraging signal for the broader economy. Worries have been rising about whether U.S. households can keep up with still-high inflation, even if it’s not as bad as before, and more expensive credit-card payments, particularly those making lower incomes. Target, which reports its quarterly results next week, climbed following Walmart’s report, along with other retailers like Dollar General and Dollar Tree. Each added at least 2.4%. Chubb climbed 3.8% after Warren Buffett’s Berkshire Hathaway disclosed it had built an ownership stake in the insurer. Stronger-than-expected profit reports have been one of the main reasons U.S. stock indexes jumped through May to records following a tough April. Another has been revived hopes that the Federal Reserve will be able to cut its main interest rate at least once or twice this year. The Fed has been keeping its federal funds rate at the highest level in more than two decades. A string of worse-than-expected reports on inflation at the start of the year had put the potential for such cuts in jeopardy, but some more encouraging data has since arrived. Treasury yields have eased in May as hopes rose that the economy could hit the hoped-for sweet spot, where it cools enough because of high interest rates to stifle inflation but not so much that it causes a bad recession. Yields were holding edging higher Thursday following some mixed data on the economy. One report showed slightly more workers applied for unemployment benefits last week than economists expected, though the number remains low compared with history. Others said homebuilders broke ground on fewer projects last month than expected, manufacturing growth in the mid-Atlantic region was weaker than hoped and import prices rose more than forecast. “Today’s numbers were in line with the overall theme of the week — nothing dramatic, but showing signs of a steady-to-cooling economy,” said Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley. The yield on the 10-year Treasury ticked up to 4.36% from 4.35% late Wednesday. The two-year yield, which moves more closely with expectations for action by the Fed, rose to 4.77% from 4.72%. On the losing end of Wall Street, Deere fell 3.2% despite reporting stronger profit for its latest quarter than expected. It cut its forecast for profit over the full fiscal year below analysts’ estimates, as farmers buy fewer tractors and other equipment. Homebuilders fell following the weaker-than-expected report on housing starts. They gave back some of their big gains the day before, when hopes for lower mortgage rates had sent them sharply higher. Lennar fell 2.1%, and D.R. Horton slipped 2%. GameStop and AMC Entertainment slid for a second straight day, pulling back further from their jaw-dropping starts to the week. They’ve been moving more on excitement drummed up by investors than any changes to their financial prospects. GameStop fell 25.2%, though it’s still up nearly 69% for the week so far. AMC Entertainment lost 13.9%. Under Armour swung from an early loss to a slight gain after it warned that its revenue will be likely down by “a low double-digit percentage rate” this upcoming fiscal year, citing weaker demand from wholesalers and “inconsistent execution across our business.” The company announced a restructuring plan to cut costs and also announced a program to buy back up to $500 million of its stock. It was up 1.1%. In stock markets abroad, indexes were modestly lower in much of Europe after mostly rising in Asia. Hong Kong’s Hang Seng jumped 1.6% after reopening following a holiday, while Japan’s Nikkei 225 rose 1.4%.

Stock market today: Dow tops 40,000 for the first time as Wall Street drifts higher

Reports suggest the London stock exchange is reeling from substantial exodus of companies. Tech firms, most notably prefer to list on Wall street over London. This next report decodes why firms such as shell could possibly look for similar exits. Take a look.

More tech firms consider de-listing in London

Social media company Reddit made a spectacular stock market debut on March 21, with its stock gaining 48 per cent on listing day. The much-anticipated Initial Public Offering (IPO) valued Reddit at $6.4 billion and helped the company raise $748 million from the market.

Analysts now argue that Reddit's bumper IPO and listing could renew interest in public offerings by tech firms, who have struggled to raise funds this year.

Reddit's recent stock surge, however, is not really in line with market expectations. The reasons are not difficult to find.

Reddit has been a loss-making entity since its launch in 2005. In its recent public disclosure, the company reported a net loss of $90.8 million, even as revenue grew 21 per cent last year.

The social media platform does not have a large user base, unlike its contemporaries like Meta and X (former Twitter). Its total monthly active users - 267.5 million in 2023 --&nbsp;dwarfs in front of Facebook (3.049 billion), Instagram (2 billion), or X (619 million).

Analysts have compared its share surge to the 2021 'meme stock' craze, which interestingly began on 'WallStreetBets', a stock market discussion forum&nbsp;on Reddit.&nbsp;&nbsp;

'Meme stocks' are ones that are widely discussed on social media, leading to a quick surge in the valuation of such stocks. However, their high valuations are not in line with company's performance or fundamental analysis. Such stocks are also considered highly volatile and risky for investors.

In early 2021, the Reddit group began discussing about GameStop, the world's largest video game retailer. Some users had received information that some big hedge funds were looking to short the company's stock. In simple terms, short sellers look to make a profit out of a declining stock.

Initially, the forum's participants, mostly small retail investors, wanted to join the big short sellers and make money. However, the discussion soon veered towards beating the big hedge funds in their own game.

Thus, began the 'GameStop short squeeze'. By January 28, GameStop's stock price rose to over $500 per share, after standing at just $17.25 in early&nbsp;January.&nbsp;

The 2,800 per cent jump in the stock price helped small investor earn massive profits. But bigger hedge funds, who anticipated a fall in price, suffered huge losses.

GameStop, a company dubbed as a 'dying relic' for failing to adapt to the changing times, suddenly became the world's first 'meme stock'. In the process, the company became the focal point of a Robinhood-like campaign against top hedge funds.

Now, life has come to a full circle for Reddit. The progenitor of the 'meme stock' could soon join the phenomenon.&nbsp;

Social media company Reddit made a spectacular stock market debut on March 21, with its stock gaining 48 per cent on listing day. The much-anticipated Initial Public Offering (IPO) valued Reddit at $6.

Social media company Reddit made a spectacular stock market debut on March 21, with its stock gaining 48 per cent on listing day. The much-anticipated Initial Public Offering (IPO) valued Reddit at $6.4 billion and helped the company raise $748 million from the market. Analysts now argue that Reddit's bumper IPO and listing could renew interest in public offerings by tech firms, who have struggled to raise funds this year. Reddit's recent stock surge, however, is not really in line with market expectations. The reasons are not difficult to find. Reddit has been a loss-making entity since its launch in 2005. In its recent public disclosure, the company reported a net loss of $90.8 million, even as revenue grew 21 per cent last year. The social media platform does not have a large user base, unlike its contemporaries like Meta and X (former Twitter). Its total monthly active users - 267.5 million in 2023 -- dwarfs in front of Facebook (3.049 billion), Instagram (2 billion), or X (619 million). Analysts have compared its share surge to the 2021 'meme stock' craze, which interestingly began on 'WallStreetBets', a stock market discussion forum on Reddit. 'Meme stocks' are ones that are widely discussed on social media, leading to a quick surge in the valuation of such stocks. However, their high valuations are not in line with company's performance or fundamental analysis. Such stocks are also considered highly volatile and risky for investors. In early 2021, the Reddit group began discussing about GameStop, the world's largest video game retailer. Some users had received information that some big hedge funds were looking to short the company's stock. In simple terms, short sellers look to make a profit out of a declining stock. Initially, the forum's participants, mostly small retail investors, wanted to join the big short sellers and make money. However, the discussion soon veered towards beating the big hedge funds in their own game. Thus, began the 'GameStop short squeeze'. By January 28, GameStop's stock price rose to over $500 per share, after standing at just $17.25 in early January. The 2,800 per cent jump in the stock price helped small investor earn massive profits. But bigger hedge funds, who anticipated a fall in price, suffered huge losses. GameStop, a company dubbed as a 'dying relic' for failing to adapt to the changing times, suddenly became the world's first 'meme stock'. In the process, the company became the focal point of a Robinhood-like campaign against top hedge funds. Now, life has come to a full circle for Reddit. The progenitor of the 'meme stock' could soon join the phenomenon.

Flashback Friday | How a Reddit community triggered the 'meme stock' phenomenon 

In a big win for Wall Street, Reuters sources suggest that US Regulators are expected to significantly reduce the extra capital banks must hold under a proposed rule. Bank regulators in July unveiled the "Basel Three" proposal to overhaul the capital requirements of banks with over $100 billion in assets. But top Wall Street banks said the draft goes further than the Basel accord and overstates their risks. Sources now say the figure is expected to fall sharply as regulators embark on a sweeping rewrite of the draft.

US regulators expected to reduce extra capital requirements: Report

US regulators are reportedly gearing up for a huge reduction in the additional capital requirements that banks must maintain under the proposed "Basel III" rule. <o:p></o:p>

The proposal, unveiled by bank regulators led by the Federal Reserve in July, aims to overhaul how banks with assets exceeding $100 billion calculate the cash reserves needed to absorb potential losses. <o:p></o:p>

However, Wall Street has launched an aggressive pushback against the rule, prompting regulatory officials to consider significant alterations.<o:p></o:p>

Anticipated capital reduction<o:p></o:p>

Industry insiders, comprising eight executives in regular contact with regulatory agencies, revealed that discussions are underway to significantly decrease the proposed capital burden. <o:p></o:p>

The initial proposal suggested an aggregate capital increase of around 16 per cent for the affected lenders. <o:p></o:p>

However, this figure is expected to see a sharp decline as regulators delve into a comprehensive revision of the draft. <o:p></o:p>

The focus is on recalibrating the calculation of potential losses from operational risks, particularly in fee income related to lending services.<o:p></o:p>

Operational risk and mortgage adjustments<o:p></o:p>

The most highest capital savings are expected to arise from adjustments in how banks calculate potential losses from operational risks, a costly aspect of the proposal. <o:p></o:p>

Wall Street has been advocating for reduced risk weights for fee income linked to lending services. <o:p></o:p>

Additionally, regulators are contemplating the elimination or reduction of higher risk weights on mortgages for low-income borrowers and renewable energy tax credits. <o:p></o:p>

These potential changes are part of the ongoing rewriting led by Fed Vice Chair for Supervision Michael Barr, in collaboration with Fed Chair Jerome Powell.<o:p></o:p>

Regulatory response and opposition<o:p></o:p>

Regulatory discussions, still in their early stages, indicate a willingness to address concerns raised by industry players. <o:p></o:p>

Powell, during congressional testimony, acknowledged the intense opposition, stating that "broad, material" changes are anticipated in the rewritten rule. <o:p></o:p>

The unprecedented intensity of Wall Street's efforts to quash the proposal involves advertising, grassroots campaigns, lobbying, and potential legal action. <o:p></o:p>

Despite the opposition, officials have not confirmed whether the rule will be reproposed, leaving the timeline for its completion uncertain.<o:p></o:p>

Dissent and legal challenges<o:p></o:p>

The Basel III proposal, aligning with international capital standards, has encountered dissent from within the Fed's board. <o:p></o:p>

Governors Michelle Bowman and Christopher Waller, along with Vice Chair Philip Jefferson, expressed reservations about the potential adverse impact on borrowers. <o:p></o:p>

The Bank Policy Institute has even hired former Labour Secretary Eugene Scalia to explore the possibility of a lawsuit, highlighting the unexpected intensity of opposition faced by regulators. <o:p></o:p>

This dissent may play a crucial role in any legal battles, showcasing divisions among experts.<o:p></o:p>

Industry engagement and timeline concerns<o:p></o:p>

Federal Reserve officials, including Powell and Barr, have engaged in over 50 meetings or calls with hundreds of industry executives since September. <o:p></o:p>

Despite these discussions, a consensus has not been reached, and challenges remain in reaching an agreement with the FDIC, chaired by Martin Gruenberg, a known Wall Street critic. <o:p></o:p>

While some hope to finalise the rule by summer, concerns linger that the timeline may prove overly ambitious.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

US regulators are reportedly gearing up for a huge reduction in the additional capital requirements that banks must maintain under the proposed "Basel III" rule.

US regulators are reportedly gearing up for a huge reduction in the additional capital requirements that banks must maintain under the proposed "Basel III" rule. The proposal, unveiled by bank regulators led by the Federal Reserve in July, aims to overhaul how banks with assets exceeding $100 billion calculate the cash reserves needed to absorb potential losses. However, Wall Street has launched an aggressive pushback against the rule, prompting regulatory officials to consider significant alterations. Anticipated capital reduction Industry insiders, comprising eight executives in regular contact with regulatory agencies, revealed that discussions are underway to significantly decrease the proposed capital burden. The initial proposal suggested an aggregate capital increase of around 16 per cent for the affected lenders. However, this figure is expected to see a sharp decline as regulators delve into a comprehensive revision of the draft. The focus is on recalibrating the calculation of potential losses from operational risks, particularly in fee income related to lending services. Operational risk and mortgage adjustments The most highest capital savings are expected to arise from adjustments in how banks calculate potential losses from operational risks, a costly aspect of the proposal. Wall Street has been advocating for reduced risk weights for fee income linked to lending services. Additionally, regulators are contemplating the elimination or reduction of higher risk weights on mortgages for low-income borrowers and renewable energy tax credits. These potential changes are part of the ongoing rewriting led by Fed Vice Chair for Supervision Michael Barr, in collaboration with Fed Chair Jerome Powell. Regulatory response and opposition Regulatory discussions, still in their early stages, indicate a willingness to address concerns raised by industry players. Powell, during congressional testimony, acknowledged the intense opposition, stating that "broad, material" changes are anticipated in the rewritten rule. The unprecedented intensity of Wall Street's efforts to quash the proposal involves advertising, grassroots campaigns, lobbying, and potential legal action. Despite the opposition, officials have not confirmed whether the rule will be reproposed, leaving the timeline for its completion uncertain. Dissent and legal challenges The Basel III proposal, aligning with international capital standards, has encountered dissent from within the Fed's board. Governors Michelle Bowman and Christopher Waller, along with Vice Chair Philip Jefferson, expressed reservations about the potential adverse impact on borrowers. The Bank Policy Institute has even hired former Labour Secretary Eugene Scalia to explore the possibility of a lawsuit, highlighting the unexpected intensity of opposition faced by regulators. This dissent may play a crucial role in any legal battles, showcasing divisions among experts. Industry engagement and timeline concerns Federal Reserve officials, including Powell and Barr, have engaged in over 50 meetings or calls with hundreds of industry executives since September. Despite these discussions, a consensus has not been reached, and challenges remain in reaching an agreement with the FDIC, chaired by Martin Gruenberg, a known Wall Street critic. While some hope to finalise the rule by summer, concerns linger that the timeline may prove overly ambitious. (With inputs from Reuters)

US regulators poised for significant cut in Basel capital demands amid intense Wall Street opposition

Paramount Global's quarterly revenue disappointed Wall Street on Wednesday, even after posting a profit boosted by streaming gains that overshadowed a sluggish advertising market.

The media conglomerate's shares surged nearly two per cent after the bell, reflecting investors' optimism amid the evolving landscape of the entertainment industry.

Streaming services have steadily gained dominance over traditional television, compounded by the aftermath of Hollywood's strikes last year and a subdued advertising market.

Paramount Global's revenue for the fourth quarter stood at $7.64 billion, falling short of analysts' estimates of $7.85 billion, as per a Reuters report.

Nonetheless, the company surprised analysts by reporting a profit of 4 cents per share, defying analysts' expectations of a 1 cent loss.

CEO Bob Bakish expressed optimism about the future, stating, "We now expect to reach domestic Paramount+ profitability in 2025."

Paramount+, the company's flagship streaming platform, witnessed a notable spike in subscribers during the quarter, adding 4.1 million compared to the previous quarter's 2.7 million.

This growth surpassed expectations, with figures slightly above the estimated 4.03 million new subscribers, as reported by data from Visible Alpha.

Paramount Global's significant investments in Paramount+ have contributed to its expansion. The company previously announced in November that investments in the streaming unit had peaked, a year ahead of schedule.

Despite the challenges posed by a turbulent advertising market, Paramount Global remains focused on growth strategies.

Revenue from its TV media segment declined by 12 per cent year-over-year, while advertising revenue fell by 15 per cent, primarily impacted by reduced political advertising and the effects of Hollywood strikes.

However, the company's finance chief, Naveen Chopra, expressed cautious optimism, noting signs of stabilisation in the ad market.&nbsp;

Paramount Global anticipates reporting "low to mid-teens advertising growth" in the first quarter, indicating a potential rebound in advertising revenue.

The latest financial results from Paramount Global come amid ongoing consolidation efforts within the US entertainment industry.

In January, reports surfaced regarding Skydance Media CEO David Ellison's exploration of an all-cash bid to acquire Paramount Global's parent company, National Amusements.

(With inputs from Reuters)

Paramount Global's quarterly revenue disappointed Wall Street on Wednesday, even after posting a profit boosted by streaming gains that overshadowed a sluggish advertising market.

Paramount Global's quarterly revenue disappointed Wall Street on Wednesday, even after posting a profit boosted by streaming gains that overshadowed a sluggish advertising market. The media conglomerate's shares surged nearly two per cent after the bell, reflecting investors' optimism amid the evolving landscape of the entertainment industry. Streaming services have steadily gained dominance over traditional television, compounded by the aftermath of Hollywood's strikes last year and a subdued advertising market. Paramount Global's revenue for the fourth quarter stood at $7.64 billion, falling short of analysts' estimates of $7.85 billion, as per a Reuters report. Nonetheless, the company surprised analysts by reporting a profit of 4 cents per share, defying analysts' expectations of a 1 cent loss. CEO Bob Bakish expressed optimism about the future, stating, "We now expect to reach domestic Paramount+ profitability in 2025." Paramount+, the company's flagship streaming platform, witnessed a notable spike in subscribers during the quarter, adding 4.1 million compared to the previous quarter's 2.7 million. This growth surpassed expectations, with figures slightly above the estimated 4.03 million new subscribers, as reported by data from Visible Alpha. Paramount Global's significant investments in Paramount+ have contributed to its expansion. The company previously announced in November that investments in the streaming unit had peaked, a year ahead of schedule. Despite the challenges posed by a turbulent advertising market, Paramount Global remains focused on growth strategies. Revenue from its TV media segment declined by 12 per cent year-over-year, while advertising revenue fell by 15 per cent, primarily impacted by reduced political advertising and the effects of Hollywood strikes. However, the company's finance chief, Naveen Chopra, expressed cautious optimism, noting signs of stabilisation in the ad market. Paramount Global anticipates reporting "low to mid-teens advertising growth" in the first quarter, indicating a potential rebound in advertising revenue. The latest financial results from Paramount Global come amid ongoing consolidation efforts within the US entertainment industry. In January, reports surfaced regarding Skydance Media CEO David Ellison's exploration of an all-cash bid to acquire Paramount Global's parent company, National Amusements. (With inputs from Reuters)

Paramount global surprises with streaming growth despite missing revenue estimates

Wall Street's top regulator, the US Securities and Exchange Commission (SEC), is nearing&nbsp;a decision that could reshape how thousands of US-listed companies disclose their climate-related risks and impacts to investors. <o:p></o:p>

The vote is scheduled for March 6.<o:p></o:p>

Here's a breakdown of the key aspects and controversies surrounding the SEC's proposed rule on climate reporting:<o:p></o:p>

Reporting emissions<o:p></o:p>

In its bid to enhance transparency, the SEC's initial draft rule aimed at comprehensive reporting of greenhouse gas emissions, spanning Scope 1, Scope 2, and even Scope 3 emissions. <o:p></o:p>

Emissions from a company's own operations are categorised as Scope 1 emissions; those from utilities and power generation are categorised as Scope 2 emissions; and emissions from a company's supply chain, which includes goods transportation, business travel, and customer consumption of goods and services, are categorised as Scope 3 emissions.

Scope 3 emissions, particularly contentious due to their complexity and potential burden on companies, have faced significant pushback from major lobby groups, arguing that such disclosures might yield insignificant data and add undue regulatory burden. <o:p></o:p>

Consequently, SEC officials have revised the proposal, opting to exclude Scope 3 emissions from mandatory disclosures. <o:p></o:p>

Moreover, requirements regarding Scope 1 and Scope 2 emissions have been refined, with companies now having the discretion to disclose them based on materiality considerations.<o:p></o:p>

Climate financial impacts<o:p></o:p>

One of the most debated provisions of the proposed rule revolves around companies disclosing financial impacts stemming from climate-related factors, such as damages from extreme weather events or expenses associated with transitioning to low-carbon operations. <o:p></o:p>

While progressive and financial reform groups advocate for such disclosures, highlighting their feasibility and potential benefits for investors, industry voices have raised concerns about the practicality and meaningfulness of the proposed disclosures. <o:p></o:p>

Critiques cite the absence of established accounting methods for quantifying climate impacts and argue that the resulting data might lack relevance or accuracy. <o:p></o:p>

Disclosing risk<o:p></o:p>

Beyond emissions and financial impacts, the proposed rule seeks to compel companies to divulge a spectrum of risk-related information, encompassing how boards manage climate risks, potential implications on business models, corporate strategies, and overall business outlooks. <o:p></o:p>

Additionally, companies would be required to outline low-carbon transition plans and utilise scenario analysis to assess climate-related risks. <o:p></o:p>

Proponents view these disclosures as pivotal for investors to make informed decisions, aligning financial interests with environmental considerations. <o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Wall Street's top regulator, the US Securities and Exchange Commission (SEC), is nearing a decision that could reshape how thousands of US-listed companies disclose their climate-related risks and impacts to investors.

Wall Street's top regulator, the US Securities and Exchange Commission (SEC), is nearing a decision that could reshape how thousands of US-listed companies disclose their climate-related risks and impacts to investors. The vote is scheduled for March 6. Here's a breakdown of the key aspects and controversies surrounding the SEC's proposed rule on climate reporting: Reporting emissions In its bid to enhance transparency, the SEC's initial draft rule aimed at comprehensive reporting of greenhouse gas emissions, spanning Scope 1, Scope 2, and even Scope 3 emissions. Emissions from a company's own operations are categorised as Scope 1 emissions; those from utilities and power generation are categorised as Scope 2 emissions; and emissions from a company's supply chain, which includes goods transportation, business travel, and customer consumption of goods and services, are categorised as Scope 3 emissions. Scope 3 emissions, particularly contentious due to their complexity and potential burden on companies, have faced significant pushback from major lobby groups, arguing that such disclosures might yield insignificant data and add undue regulatory burden. Consequently, SEC officials have revised the proposal, opting to exclude Scope 3 emissions from mandatory disclosures. Moreover, requirements regarding Scope 1 and Scope 2 emissions have been refined, with companies now having the discretion to disclose them based on materiality considerations. Climate financial impacts One of the most debated provisions of the proposed rule revolves around companies disclosing financial impacts stemming from climate-related factors, such as damages from extreme weather events or expenses associated with transitioning to low-carbon operations. While progressive and financial reform groups advocate for such disclosures, highlighting their feasibility and potential benefits for investors, industry voices have raised concerns about the practicality and meaningfulness of the proposed disclosures. Critiques cite the absence of established accounting methods for quantifying climate impacts and argue that the resulting data might lack relevance or accuracy. Disclosing risk Beyond emissions and financial impacts, the proposed rule seeks to compel companies to divulge a spectrum of risk-related information, encompassing how boards manage climate risks, potential implications on business models, corporate strategies, and overall business outlooks. Additionally, companies would be required to outline low-carbon transition plans and utilise scenario analysis to assess climate-related risks. Proponents view these disclosures as pivotal for investors to make informed decisions, aligning financial interests with environmental considerations. (With inputs from Reuters)

SEC's climate reporting rule: What's at stake for investors and corporations?

Inflation continued its downward trajectory in the United States. Yet, that does not mean that the average American can breathe a sigh of relief. Watch in for more details!

Latest inflation data sparks a sell-off on Wall Street

Investors are struggling to keep pace with the rapid surge in AI-related stocks as the new tech frenzy expands. Arm holdings was already one of the world's most expensive stocks for its size before last week's earnings report. It's now in a league of its own after three days of crazy share buying.

Wall Street struggles to keep pace with AI-tech stocks

Global investors are pulling out billions of dollars from Chinese markets and investing them in India. Is India the next global investment hub?

Gravitas | Wall street giants snub China for India | Is India the next global investment hub?

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