These “synthetic risk transfers” (SRTs) involve a bank selling all or part of the credit risk of a group of assets to investors such as hedge or pension funds

International News via Reuters:

Banks are increasingly turning to bespoke deals with private investment funds to shed credit risk, but the market needs close monitoring as it spawns new vulnerabilities for the global financial system, the world’s forum for banking regulators said.

These “synthetic risk transfers” (SRTs) involve a bank selling all or part of the credit risk of a group of assets to investors such as hedge or pension funds. They allow banks to free up capital while maintaining their client relationships.

SRTs are not new, but they have proven particularly popular in the European Union, with new transactions more than tripling between 2016 and 2024 after EU regulatory changes provided some synthetic securitisations preferential prudential treatment, the Basel Committee on Banking Supervision said in a report on Tuesday.

U.S. volumes have also jumped following regulatory clarity in 2023 on how the deals are treated under bank capital requirements, added the committee, which is made up of banking regulators and central bankers from the G20 economies and other countries. 

Among European banks, Britain’s Barclays, Austria’s BAWAG and Greece’s Alpha are the heaviest users of SRTs relative to the size of their corporate loan books – with the average listed lender using them to cover about 12% of those loans, the report said.

WORRY OVER ‘SHADOW BANKING’ TIES

The committee said SRTs help banks boost lending that is subject to lower capital requirements but warned that heavy reliance on them left lenders exposed to the health of non-financial intermediaries buying the risk. If those investors falter, this could affect the flow of credit.

“A contraction in credit caused by a protracted freeze in SRT markets could exacerbate an economic downturn and increase stress in the non-financial sector, possibly triggering an adverse deleveraging feedback loop,” the committee wrote in the report.

Regulators globally are concerned about the growth of non-bank intermediaries involved in what is often referred to as ‘shadow banking’, because of a lack of transparency and the possibility of new risks that could endanger broader financial stability. 

The committee’s report also highlighted risks over growing links between banks and non-banks – because banks often finance the very investors buying the credit risk – as well as opaque individual deals and weakening underwriting standards.

While some of these risks are being monitored and addressed, the committee said closer supervision was needed as further growth of the SRT market could multiply the risks.

Reporting by Tommy Reggiori Wilkes, additional reporting by Valentina Za in Milan; Editing by Emelia Sithole-Matarise

Brent futures fell $1.41, or 2.1%, to $67.24 a barrel at 11:50 a.m. EST (1650 GMT), while U.S. West Texas Intermediate (WTI) crude fell 65 cents, or 1.0%, to $62.24 in volatile trading

International News via Reuters:

Oil prices fell about 2% to a two-week low on Tuesday on hopes tensions between the United States and Iran were easing after Iran’s foreign minister said the countries had reached an understanding on the main “guiding principles” of their nuclear talks.

Brent futures fell $1.41, or 2.1%, to $67.24 a barrel at 11:50 a.m. EST (1650 GMT), while U.S. West Texas Intermediate (WTI) crude fell 65 cents, or 1.0%, to $62.24 in volatile trading, putting both crude benchmarks on track for their lowest close since February 2. Earlier in the session WTI prices rose more than $1.

Iran and the United States reached an understanding on the main “guiding principles” in a second round of indirect talks in Geneva over their nuclear dispute on Tuesday, but that does not mean a deal is imminent, Iranian Foreign Minister Abbas Araqchi said. 

The talks took place amid a U.S. military buildup in the Middle East. Iran’s supreme leader said on Tuesday that any U.S. attempt to depose his government would fail.

Oil prices are likely to stay volatile, with sharp two-way swings driven by diplomatic signals rather than pure demand-supply fundamentals, said Sugandha Sachdeva, founder of SS WealthStreet, a New Delhi-based research firm.

Investors are closely watching U.S.-Iran relations as any escalation or conflict could lead to Iran closing the Strait of Hormuz. About a fifth of the oil consumed globally passes through the Strait of Hormuz between Oman and Iran, making any disruptions in the area a major risk to global oil supplies.

Iran and fellow Organization of the Petroleum Exporting Countries (OPEC) members Saudi Arabia, United Arab Emirates, Kuwait and Iraq export most of their crude via the Strait, mainly to Asia.

In 2025, Iran was the third-biggest crude producer in OPEC behind Saudi Arabia and Iraq, according to U.S. Energy Information Administration data.

Another factor weighing on prices was the gradual increase in oil production at Kazakhstan’s giant Tengiz oil field after an outage in January, Russian news agency Interfax reported.

RUSSIA AND UKRAINE

Also in Geneva on Tuesday, Ukrainian and Russian officials were set to meet for a new round of U.S.-brokered peace talks, which the Kremlin said would likely focus on territory – the main sticking point.

Any peace resolution could see a lifting of sanctions on Russia, bringing Russian oil back to the mainstream market. In 2025, Russia was the third-biggest crude producer in the world behind the United States and Saudi Arabia, according to data from the U.S. EIA.

Ukraine, meanwhile, continued its attacks on Russian energy infrastructure. The Ukrainian military said on Tuesday it struck the Ilsky refinery, while a drone attack was also reported at the port of Taman.

Reporting by Scott DiSavino and Siddharth Cavale in New York, Robert Harvey in London, Mohi Narayan in New Delhi and Anushree Mukherjee in Bengaluru; additional reporting by Stephanie Kelly; Editing by Thomas Derpinghaus, Will Dunham, David Holmes, Chizu Nomiyama and Andrei Khalip

The British consumers’ association which goes by the name of Which? had brought the case on behalf of around 29 million people who bought iPhones or Samsung devices since 2015

International News via Reuters:

Chipmaker Qualcomm said on Tuesday a London lawsuit alleging it had abused its dominant position to force Apple and Samsung to pay inflated royalties will be withdrawn.

The British consumers’ association which goes by the name of Which? had brought the case on behalf of around 29 million people who bought iPhones or Samsung devices since 2015, seeking 480 million pounds ($652.03 million) in compensation.

Which? had argued at a trial last year that Qualcomm made Apple and Samsung pay inflated royalties even if its chips were not used in a device under a worldwide so-called no licence, no chips policy, which inflated the cost of devices.

Qualcomm, however, said the lawsuit mischaracterised its long-standing requirement for manufacturers to obtain a licence for its standard essential patents before buying chipsets.

The Competition Appeal Tribunal had yet to give a ruling following last year’s trial.

Which? said in a statement on Tuesday that it would apply to withdraw the case, having reached an agreement under which Qualcomm will make no payment to the claimant class.

It said it had concluded the tribunal would find Qualcomm did not coerce Apple or Samsung to sign any patent licences or chipset agreements, or agree to any licensing terms.

Which? also said the tribunal would find Qualcomm’s practices “did not infringe competition laws, did not result in inflated royalties, and did not lead to an increase in prices consumers paid for their mobile phones”.

A Qualcomm spokesperson said: “This recognition by the class representative, following a trial on the merits, reaffirms what the courts in the United States have repeatedly held: Qualcomm’s licensing practices are lawful and do not harm competition.”

Apple and Samsung did not immediately reply to a request for comment.

A similar consumer lawsuit against Qualcomm in California, which challenged the company’s patent licensing and exclusive-dealing chip agreements with Apple and other manufacturers, was dismissed in 2023.

($1 = 0.7362 pounds)

Reporting by Sam Tobin; Editing by Catarina Demony and Emelia Sithole-Matarise

The paper concerns the European Union’s upcoming second carbon market, known as “ETS2”, which from 2028 will impose a price on CO2 emissions produced by heating and transport fuels

International News via Reuters:

Sweden, Denmark, Finland and Luxembourg have opposed calls by other European governments to delay the EU’s upcoming carbon market, as political pressure mounts for the bloc to curb energy costs, a joint paper by the countries showed.

The paper concerns the European Union’s upcoming second carbon market, known as “ETS2”, which from 2028 will impose a price on CO2 emissions produced by heating and transport fuels.

The EU has already delayed the market’s launch by one year, and fast-tracked the distribution of revenues to governments from the scheme. But that has not quelled pushback from leaders in Slovakia and the Czech Republic, who say it will raise fuel bills. 

AMBASSADORS TO DISCUSS STRONGER PRICE CONTROLS

“Any further postponement or amendments related to the market-based price of ETS2 would substantially undermine the effectiveness of EU climate policy,” Sweden and the other countries said in the paper circulated among EU governments and seen by Reuters.

EU countries’ ambassadors meet on Wednesday to sign off on stronger controls on ETS2 prices, which Brussels proposed after 19 countries demanded this last year. The four countries’ paper said that once these changes are passed, the EU should leave the system alone.

Debates about changing ETS2 further “are reducing the system’s credibility and increase uncertainty for investment decisions by firms and households,” they said.

ETS2 is designed to encourage the shift to electric vehicles and cleaner home heating systems, by putting a price on CO2 emissions, and recycling the revenues from the scheme to subsidise electric cars and energy-saving home renovations for poorer households and smaller businesses.

Brussels has also faced mounting pressure from some governments and industries to weaken its existing carbon market, which puts a price on CO2 emissions from industries and power plants.

The European Commission will propose a review of the existing carbon market later this year. Some governments are eyeing that as a route to also change ETS2, since it is governed by the same law, EU diplomats said.

Reporting by Kate Abnett; Editing by David Holmes

The decision follows a positive recommendation from the European Union’s drug regulator in December for the drug’s 7.2 milligram dose

International News via Reuters:

Novo Nordisk said on Tuesday the European Commission has approved a higher dose of its popular obesity drug Wegovy, providing patients and doctors with an option that may support greater weight loss.

The decision follows a positive recommendation from the European Union’s drug regulator in December for the drug’s 7.2 milligram dose.

With the approval, doctors in the EU may now prescribe the 7.2 mg dosage as three 2.4 mg injections, to be taken in one sitting, once a week, the Danish drugmaker said.

In a 72-week late-stage trial involving 1,407 adults without diabetes, participants on the 7.2 mg dose lost an average of 20.7% of body weight, compared with 17.5% for the 2.4 mg dose.

Novo has also applied for an EU approval of a 7.2 mg single-dose pen. If approved, this could be available this year, the company said.

Reporting by Mariam Sunny in Bengaluru; Editing by Shilpi Majumdar