Widespread Bitcoin Adoption Is Still Some Way Off — Market Talk

0842 ET - Widespread adoption of bitcoin is still a long way off, Hargreaves Lansdown's Matt Britzman says, following the cryptocurrency's recent surge to record highs. The key risk is volatility, he says. "Until trading becomes more stable, its use as a mainstream store of wealth will always come into question." There is also the prospect of geopolitical flare-ups weighing on cryptocurrencies as risky assets. Other risks include the potential for large holders of bitcoins, known as bitcoin whales, to offload the asset, as well as regulatory uncertainties. Bitcoin falls 2.3% to $117,417 after reaching an all-time high of $123,153 Monday, according to LSEG. ([email protected])0839 ET - The market's poor perception of Amundi due to its exposure to macroeconomic uncertainty has vanished, AlphaValue says in a research note. The French asset manager's stock has outperformed the Stoxx 600 index since the start of the year, the analysts write. This shift is explained by the group's internal resilience, which has been boosted by its positive earnings track record in an abnormal market environment and the progress it has made on its strategic initiatives, the analysts write. The increasing strategic importance of European asset management also contributed, given that the industry is increasingly called upon to act as a transmission channel to pool savings in order to finance needed investments across the continent, they note. ([email protected])0830 ET - Europe's exporters will struggle to make up for lost U.S. demand as higher tariffs push up prices, Oxford Economics' Matthew Swannell writes in a research report. President Trump has threatened to slap EU imports with entry duties as high as 30%, part of his plan to redress his country's trade deficits with major partners and shore up domestic manufacture. The U.S. is the largest outside market for the EU, and is vital for key export sectors such as cars and drugs, Swannell notes. "This will make it difficult for Europe to switch to other markets," he warns. ([email protected]; @joshualeokirby))0824 ET - Sterling rises after U.K. Treasury chief Rachel Reeves announced a string of financial sector reforms to boost investment and economic growth. The measures include reforming ringfencing rules that require U.K. banks separate their retail and investment banking activities. The announcement reaffirms the importance of the U.K.'s financial sector in driving economic growth, EY's Martina Keane says in a note. It outlines a "positive vision to streamline regulation, boost opportunities for retail investors, modernise capital markets, and attract foreign investment." The euro falls 0.1% to 0.8674 pounds after earlier hitting a three-month high of 0.8696, LSEG data show. Sterling rises 0.1% to $1.3443 after reaching a three-week low of $1.3418 overnight. ([email protected])0749 ET - The cost of euro credit default swaps falls as investor sentiment improves ahead of corporate earnings results. Credit default swaps act as insurance against default. "European markets are taking a largely positive stance in early trade on Tuesday, casting aside the tariff fears that had dominated the newswires over the weekend," Rostro's Joshua Mahony says in a note. The iTraxx Europe Crossover index, which tracks euro junk bond credit default swaps, falls 2 basis points to 281 bps, S&P Global Market Intelligence data show. ([email protected])0731 ET - Investors seeking to increase their protection against the risk that the dollar will weaken fell in July, Bank of America's latest global fund manager survey shows. Some 33% of investors looked to raise hedges against the dollar falling, down from 39% in June and 40% in May. The survey also shows 41% of investors said they weren't planning to change their foreign exchange hedges when asked about their hedge ratio of overseas exposures. That compares to 32% in June. ([email protected])0716 ET - Investors' exposure to the euro over the past six months has jumped by the most on record, according to Bank of America's July global fund manager survey. A net 20% of investors are now overweight the euro, the highest level since January 2005. Overweight indicates a higher-than-usual exposure to a certain asset in a portfolio. Investor exposure has risen 39 percentage points from a net 18% underweight in January, a record rise over a six-month period. Investors are most overweight the euro in July along with eurozone, emerging markets and bank equities. The survey also shows a net 31% of investors think the euro is undervalued, down from 38% in June. ([email protected])0702 ET - Two interest-rate cuts by the Federal Reserve this year is the most likely scenario, Bank of America's global fund manager survey for July shows. A total of 47% of fund managers surveyed expect two rate cuts in 2025. About one third, or 34%, expect one rate cut, while 10% of responders anticipate no change this year, the survey finds. Three rate cuts in 2025 are expected by 8% and more than 3 cuts are forecast by 1%. The federal funds rate is currently 4.25%-4.50%. ([email protected])0657 ET - JPMorgan Chase CEO Jamie Dimon says the U.S. economy remained resilient in the recent quarter. "The finalization of tax reform and potential deregulation are positive for the economic outlook, however, significant risks persist--including from tariffs and trade uncertainty, worsening geopolitical conditions, high fiscal deficits and elevated asset prices," he says. Dimon notes that, while hoping for the best, the bank is preparing for a wide range of scenarios. Shares climb 1.5% after JPMorgan Chase posts higher-than-expected top and bottom lines in 2Q. ([email protected])0653 ET - A trade war causing a global recession is consider to be the biggest tail risk event, according to 38% of investors in the Bank of America global fund manager survey for July show. A tail risk event is an event which would cause potential losses for investors but which has a low probability of occurring. The second biggest tail risk event, cited by 20% of investors polled, is inflation hindering the U.S. Federal Reserve from cutting interest rates. The U.S. dollar depreciating due to capital flight is the third biggest tail risk event, according to 14% of investors in the survey. ([email protected])0649 ET - Investors consider short positions that bet against the dollar to be the most crowded trade, Bank of America's July global fund manager survey shows. Some 34% of respondents hold this view. It marks the first time in the survey's history that short dollar is the most crowded trade, replacing long positions betting on the gold price rising. Investors are most underweight the dollar, along with U.S. stocks, and energy and staples equities. The survey shows 47% of investors consider the dollar is overvalued, down from 61% in June's survey. The dollar slumping on capital flight is seen as the third biggest tail risk--an event with a small probability of happening--, with 14% investors having this view.([email protected])0642 ET - U.S. Treasury Secretary Scott Bessent is the strongest candidate to succeed Federal Reserve Chair Jerome Powell, Bank of America's July global fund manager survey says. President Trump is expected to nominate a new Fed chair in the second half of 2025, while Powell's term ends in May 2026. A total of 26% expect Bessent to be the next Fed chair, followed by 17% expecting Kevin Warsh, 14% saying Christopher Waller and 7% predicting Kevin Hassett, the survey says. ([email protected])