Net cash flow was -€8 million , a sharp decline from +€178 million in the prior-year quarter. Free cash flow before dividend was -€103 million versus €39 million a year ago. Both Haag and Hoffmann emphasized the quarter-end cash flow should be viewed as a “snapshot,” driven largely by working capital effects at record-high metal prices.Operating EBIT was €101 million and operating EBT of €105 million was 19% below the prior-year quarter’s €130 million . Hoffmann attributed the year-over-year decline to high ...

Core Viewpoint - The U.S. dollar has reached a four-year low, influenced by various factors including expectations of further Federal Reserve rate cuts, tariff-related uncertainties, and concerns regarding Fed independence, which have collectively diminished investor confidence in the U.S. macroeconomic outlook [1]. Economic Indicators - The U.S. Dollar Index (DXY) has decreased by 1.94% over the past month and 10.74% over the past year, with an all-time decline of 19.81% [2]. Interest Rate Expectations - Anticipations of further interest rate cuts by the Federal Reserve in 2026 are contributing to the dollar's decline, as lower rates make the dollar less appealing to foreign investors [3][4]. Geopolitical Factors - Geopolitical tensions and renewed tariff frictions have heightened market volatility, leading to a decrease in investor appetite for U.S. assets and a rotation of capital away from the United States, which further pressures the dollar [5][6]. Capital Flows - A significant outflow of capital from U.S. equity funds was noted, with investors withdrawing a net $5.26 billion in the week ending January 21, indicating reduced demand for the dollar [7]. Investment Strategies - In light of the weakening dollar, portfolio diversification and hedging are becoming increasingly important for investors. Funds such as the WisdomTree Emerging Currency Strategy Fund (CEW) provide exposure to various emerging currencies and have seen a positive performance, gaining 1.24% over the past month and 13.94% over the past year [9][10]. Precious Metals - The weakening dollar has led to increased interest in precious metals, with commodity funds attracting a net inflow of $1.96 billion in the week ending January 21, marking a trend of net purchases over 10 out of the last 11 weeks [12]. Emerging Market Opportunities - The decline of the dollar is also driving interest in global equity funds, particularly emerging market ETFs, which may offer higher returns for investors willing to take on additional risk [14][15].

Group 1 - The article discusses the importance of hedging in managing financial risks and maintaining liquidity in the market [1][2] - It highlights the current prices of certain assets, with BB at $5.00 and BR at $5.20, indicating a slight price difference that may affect trading strategies [1][2] - The focus is on the strategies companies can employ to safeguard their reserves and mitigate risks associated with market fluctuations [1][2]

Core Insights - East West Bancorp reported a record-breaking year in 2025, achieving new highs in revenue, net interest income, fees, non-interest income, earnings per share, loans, and deposits, with expectations for continued growth in 2026 despite economic uncertainties [5][4][7] Lending and Deposit Growth - End-of-period loans grew by 6% year over year, with average loans increasing by 4%, primarily driven by commercial and industrial (C&I) growth, which is expected to continue leading lending growth into 2026 [1][7] - The bank's deposit growth was prioritized through a business checking campaign, resulting in a 6% year-over-year increase in end-of-period deposits, with non-interest-bearing deposits and time deposits showing traction [2][7] Dividend and Shareholder Metrics - The board approved a quarterly dividend increase of $0.20 to $0.80 per share, representing a 33% increase, payable on February 17 to stockholders of record on February 2 [3][4] Financial Performance and Projections - The bank's core deposit growth supported loan growth and improved liquidity, with management guiding for loan growth of 5-7% in 2026, led by C&I and residential mortgages, alongside net interest income growth of 5-7% [2][11][7] - Fourth-quarter net interest income was reported at $658 million, benefiting from balance sheet growth and favorable deposit mix shifts, with a reduction in deposit costs [9][10] Fee Income and Expense Management - Fee income grew by 12% in 2025, driven by strong performance in wealth management, derivatives, foreign exchange, and lending fees, with aspirations to grow fee income faster than balance sheet growth in 2026 [12][13] - Total operating non-interest expense rose by 7.5% in 2025, with expectations for a 7-9% increase in 2026 due to headcount additions and IT-related expenditures [13] Asset Quality and Capital Position - The bank maintained strong asset quality, with net charge-offs of 8 basis points in Q4 and a provision for credit losses of $30 million, while projecting net charge-offs of 20-30 basis points for 2026 [6][15] - Regulatory capital ratios remain robust, with a Common Equity Tier 1 ratio of 15.1%, supporting the bank's client service model and resilience amid potential volatility [16] Hedging and Securities Strategy - Cash hedge headwinds narrowed significantly, with expectations for hedges to become tailwinds in 2026 as rate cuts continue, and a shift towards fixed-rate purchases in securities based on relative value [17]

Some lenders have asked India’s central bank to step in to curb a sharp rise in hedging costs, according to people familiar with the matter https://t.co/8N4uPDL5ZG ...

Regulatory Focus - CFTCpham 发表关于 IOSCO 预对冲报告的声明 [1]

Brazilian traders are increasingly hedging against a drop in the real after former President Jair Bolsonaro backed his son in next year’s election, instead of supporting investors’ favorite Tarcisio de Freitas. https://t.co/1Au35zLF0K ...

Core Viewpoint - Tenaz Energy Corp. has announced its production and capital guidance for 2026, projecting significant growth in production and outlining a capital expenditure budget of $250 to $275 million, with expected production growth of approximately 115% year-over-year from 2025 [1][3]. Production and Capital Expenditure Guidance - The average production volume for 2026 is estimated to be between 19,500 to 22,500 barrels of oil equivalent per day (boe/d) [3]. - The capital expenditure (CAPEX) budget for 2026 is set at $250 to $275 million, which is aimed at supporting organic growth following two major acquisitions in 2025 [3][5]. - The company anticipates that the largest impact on production growth from the CAPEX program will be realized in 2027, with a potential production exit rate for 2026 as high as 27,000 boe/d [5]. Operational Plans - In the Dutch North Sea asset base, three jack-up drilling rigs are currently operational, with specific wells being drilled in the Joint Development Area and other locations [4]. - The Canadian program will consist of a three-well horizontal drilling initiative starting in Q1 2026, representing 4% of the total budget [7]. - The capital plan allocates approximately 80% of CAPEX to drilling operations, 10% to workover and optimization activities, and 10% to long-lead purchases and facilities projects [7]. Commodity Prices and Hedging Strategy - The company expects ongoing competition in securing LNG supply in Europe, particularly as reliance on Russian gas is projected to cease by the end of 2027 [8]. - As of now, Tenaz is 42% hedged for the full year 2026 on an oil-equivalent basis, with 50% of projected revenue for 2026 currently protected via hedging [9].

Core Insights - The U.S. dollar is under persistent downward pressure in 2025 due to Fed interest rate cuts and economic instability, leading to increased investor anxiety and a negative outlook for the dollar [1] - The U.S. Dollar Index (DXY) has decreased by 0.70% over the past month and 8.73% year to date, with an all-time decline of 17.38% [1] Monetary Policy Impact - The value of the U.S. dollar is inversely related to the Federal Reserve's monetary policies, with interest rate cuts making the dollar less attractive to foreign investors [2] - Markets are anticipating an 89.4% likelihood of interest rates being lowered to 3.5-3.75% in December, which is a significant increase from previous expectations [3] Investor Behavior - Volatility in the U.S. economy has decreased investor appetite for U.S. assets, leading to reduced demand for the dollar and further weakening its value [4] - U.S. equity funds experienced a net outflow of $3.52 billion in the week to December 3, marking the second consecutive week of selling [5] Investment Opportunities - A weakening dollar necessitates portfolio diversification and hedging for investors, with specific funds recommended for exposure to precious metals and emerging markets [6] - Funds such as WisdomTree Emerging Currency Strategy Fund (CEW) and Invesco DB Precious Metals Fund (DBP) provide broader exposure to precious metals [7] - Emerging market equity funds attracted $3.11 billion in inflows in the week to December 3, marking the sixth straight week of net inflows, with the Dow Jones Emerging Markets Index up 20.48% year to date [9]

Market Trend - Vitalik Buterin proposes a trustless gas futures market to hedge Ethereum fees [1] Debate - The proposal sparks debate over feasibility [1]