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By Elizabeth Howcroft (Reuters) -Europe's crypto rules do enough to address the risks around stablecoins, the European Commission said on Friday, signalling it does not see the need for major change after the European Central Bank called for more safeguards. Stablecoins – cryptocurrencies pegged to real-world currencies – are among the fastest-growing parts of the digital assets industry, with the U.S. this year passing legislation to promote their usage. Europe has launched a landmark set of crypto-specific rules, but lawmakers in Brussels are facing pressure from the ECB to block the so-called "multi-issuance" stablecoin model. ECB CALLS FOR SAFEGUARDS At the heart of the dispute is the question of whether a multinational stablecoin company can treat the tokens it issues within the EU as interchangeable with those held outside the EU. In a letter sent to European Commissioner Maria Luis Albuquerque on Tuesday, six crypto industry associations, whose members include major stablecoin issuer Circle, called on the EU to publish guidance "confirming multi-issuance in principle" and clarify how it works under the EU's crypto rules, called MiCA. "We believe MiCA provides a robust and proportionate framework for addressing risks stemming from stablecoins," a Commission spokesperson told Reuters in emailed comments, acknowledging receipt of the letter. "The Commission is working towards providing such clarification as soon as possible." The European Systemic Risk Board, headed by ECB President Christine Lagarde, has said that the multi-issuance structure would bring built-in risks for financial stability and called for urgent safeguards. The ECB is concerned that people holding tokens created by a stablecoin's non-EU entity could choose to redeem it with the EU entity, potentially creating a run on reserves held within the EU. But stablecoin issuers say that they can make sure they always have enough reserves to meet redemption requests, wherever they take place. JP Morgan analysts said this week that 99% of stablecoin supply is pegged to the dollar, and that the sector's growth would boost demand for the greenback. (Reporting by Elizabeth Howcroft. Editing by Tommy Reggiori Wilkes and Mark Potter)

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By Elizabeth Howcroft (Reuters) -Europe's crypto rules do enough to address the risks around stablecoins, the European Commission said on Friday, signalling it does not see the need for major change after the European Central Bank called for more safeguards. Stablecoins – cryptocurrencies pegged to real-world currencies – are among the fastest-growing parts of the digital assets industry, with the U.S. this year passing legislation to promote their usage. Europe has launched a landmark set of crypto-specific rules, but lawmakers in Brussels are facing pressure from the ECB to block the so-called "multi-issuance" stablecoin model. ECB CALLS FOR SAFEGUARDS At the heart of the dispute is the question of whether a multinational stablecoin company can treat the tokens it issues within the EU as interchangeable with those held outside the EU. In a letter sent to European Commissioner Maria Luis Albuquerque on Tuesday, six crypto industry associations, whose members include major stablecoin issuer Circle, called on the EU to publish guidance "confirming multi-issuance in principle" and clarify how it works under the EU's crypto rules, called MiCA. "We believe MiCA provides a robust and proportionate framework for addressing risks stemming from stablecoins," a Commission spokesperson told Reuters in emailed comments, acknowledging receipt of the letter. "The Commission is working towards providing such clarification as soon as possible." The European Systemic Risk Board, headed by ECB President Christine Lagarde, has said that the multi-issuance structure would bring built-in risks for financial stability and called for urgent safeguards. The ECB is concerned that people holding tokens created by a stablecoin's non-EU entity could choose to redeem it with the EU entity, potentially creating a run on reserves held within the EU. But stablecoin issuers say that they can make sure they always have enough reserves to meet redemption requests, wherever they take place. JP Morgan analysts said this week that 99% of stablecoin supply is pegged to the dollar, and that the sector's growth would boost demand for the greenback. (Reporting by Elizabeth Howcroft. Editing by Tommy Reggiori Wilkes and Mark Potter)

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By Muvija M and Paul Sandle LONDON (Reuters) -Britain designated Google as having strategic market status in online search on Friday, paving the way for 'proportionate, targeted' interventions in the first use of the country's new regulatory powers to tackle the dominance of Big Tech. The Competition and Markets Authority's move, which enables it to compel the U.S. company to change the way it operates, is not a finding of wrongdoing and does not introduce any immediate requirements, the regulator said. "We have found that Google maintains a strategic position in the search and search advertising sector – with more than 90% of searches in the UK taking place on its platform," the CMA's Executive Director for Digital Markets Will Hayter said. Competition regulators have long had Alphabet-owned Google in their sights. The U.S. Federal Trade Commission launched an investigation into Google and Amazon's search advertising last month, while the U.S. Department of Justice wants to force Google to sell off some of its advertising technology tools. In response to the British action, Google's Senior Director for Competition Oliver Bethell said: "Many of the ideas for interventions that have been raised in this process would inhibit UK innovation and growth, potentially slowing product launches at a time of profound AI-based innovation." Google, which said last month it would invest 5 billion pounds ($6.65 billion) in Britain, hoped any outcome would reflect the CMA's goal "to ensure the UK's competition framework mirrors the best interests of UK consumers and businesses", he added. The CMA, which can impose fines for non-compliance and has direct enforcement powers, said the designation enabled it to consider proportionate, targeted interventions to ensure that general search services are "open to effective competition". It outlined in June, when it first proposed the designation, steps including fairer ranking in search and offering consumers more access to alternative search engines. The regulator said on Friday that while Google's Gemini AI assistant was not in the scope of the designation, the position would be kept under review given uncertainty over how the market was developing. Other AI-based search features, such as AI Overviews and AI Mode, were included in the designation, it added. ($1 = 0.7523 pounds) (Reporting by Paul Sandle and Muvija M; Editing by William James and Emelia Sithole-Matarise)

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BRUSSELS (Reuters) -The European Commission is scrutinising safeguards for minors on Snapchat, YouTube, the Apple App Store and Google Play under its Digital Services Act, it said on Friday. (Reporting by Charlotte Van Campenhout, Editing by Benoit Van Overstraeten)

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BEIJING (Reuters) -China has launched an antitrust investigation into U.S. semiconductor manufacturer Qualcomm over its acquisition of Israel's Autotalks, China's market regulator said on Friday. China's State Administration for Market Regulation said the probe would look at whether Qualcomm violated China's antitrust law by not lawfully declaring some details in its acquisition of the Israeli chip designer. Qualcomm's shares were down 2.8% in premarket trading. CHINA, US TRADE TENSIONS San Diego-based Qualcomm said in June it had finalised the deal for Autotalks, which makes communications chips to help prevent car crashes, without disclosing the size, or how it had resolved earlier sticking points. Qualcomm had said in 2024 it would drop the bid for Autotalks after it failed to get regulatory approvals in a timely manner. Qualcomm did not immediately respond to a request for comment on the Chinese probe. In 2015, the major supplier of mobile phone chips paid a $975 million fine to resolve a Chinese antitrust case. The latest investigation comes after Beijing last month accused U.S. AI chip maker Nvidia of violating China's anti-monopoly law. Both probes could heighten tensions between China and the U.S. at a time when they appear to be struggling to move beyond a trade tariff truce. U.S. President Donald Trump and Chinese leader Xi Jinping are expected to meet when they attend an Asia-Pacific Economic Cooperation summit in South Korea at the end of this month. (Reporting by Liz Lee, Brenda Goh and Beijing newsroom. Editing by Jane Merriman and Mark Potter)

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BEIJING (Reuters) -China has launched an antitrust investigation into U.S. semiconductor manufacturer Qualcomm over its acquisition of Israel's Autotalks, China's market regulator said on Friday. China's State Administration for Market Regulation said the probe would look at whether Qualcomm violated China's antitrust law by not lawfully declaring some details in its acquisition of the Israeli chip designer. Qualcomm shares fell 1.2% in premarket trading. CHINA, US TRADE TENSIONS San Diego-based Qualcomm said in June it had finalised the deal for Autotalks, which makes communications chips to help prevent car crashes, without disclosing the size, or how it had resolved earlier sticking points. Qualcomm had said in 2024 it would drop the bid for Autotalks after it failed to get regulatory approvals in a timely manner. Qualcomm and Autotalks did not immediately respond to Reuters' requests for comment on the Chinese probe. In 2015, the major supplier of mobile phone chips paid a $975 million fine to resolve a Chinese antitrust case. The latest investigation comes after Beijing last month accused U.S. AI chip maker Nvidia of violating China's anti-monopoly law. "The investigation adds to broader regulatory scrutiny of U.S. chipmakers in China," Equisights Research analyst Parth Talsania said. "With Qualcomm deriving a notable portion of revenue from Chinese handset and automotive customers, we believe the announcement amplifies existing investor caution around geopolitical and regulatory risk," Talsania added. Qualcomm derived 46% of its revenue in its fiscal 2024 from customers with headquarters in China. Both probes could heighten tensions between China and the U.S. at a time when they appear to be struggling to move beyond a trade tariff truce. U.S. President Donald Trump and Chinese leader Xi Jinping are expected to meet when they attend an Asia-Pacific Economic Cooperation summit in South Korea at the end of this month. (Reporting by Liz Lee, Brenda Goh, Beijing newsroom and Jaspreet Singh; Editing by Jane Merriman and Mark Potter)

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BRUSSELS (Reuters) -The European Commission is scrutinising safeguards for minors on Snapchat, YouTube, the Apple App Store and Google Play under its Digital Services Act, it said on Friday. The Commission is asking the businesses to provide information on their age verification systems, as well as on how they prevent minors from accessing illegal products, including drugs and vapes, or harmful material, such as content promoting eating disorders. "Today, alongside national authorities in the member states, we are assessing whether the measures taken so far by the platforms are indeed protecting children," EU tech chief Henna Virkkunen said. The DSA is an EU landmark law that requires online companies to do more to tackle illegal and harmful content on their platforms. (Reporting by Charlotte Van Campenhout. Editing by Benoit Van Overstraeten and Mark Potter)

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By Caroline Valetkevitch NEW YORK (Reuters) -U.S. companies could report milder earnings growth in the third quarter than earlier this year, partly due to a likely tariff hit, while investors look for signs that heavy spending on artificial intelligence is paying off. While most U.S. corporations have managed to beat earnings expectations even after U.S. President Donald Trump first announced wide-ranging tariffs on imports in April, the full impact of his trade policies remains uncertain. With optimism about emerging AI technology lifting Wall Street indexes to record highs this year, investors are likely to focus more on AI-related capital expenditures than tariffs and other risks. Analysts expect S&P 500 companies to post 8.8% higher earnings than in the 2024 third quarter, according to the latest LSEG forecast. Year-over-year growth was above 13% in each of the first two quarters of 2025.     The reporting period unofficially kicks off next week with results from some of the biggest U.S. banks.  The S&P 500 and Nasdaq registered record closing highs on Wednesday, boosted by AI-related megacaps that have been market leaders this year. Earnings from the so-called Magnificent 7 group of megacap stocks and AI leaders could be "very robust," said Anthony Saglimbene, chief market strategist at Ameriprise Financial in Troy, Michigan. "But investors are going to be skeptical about some of the commentary on capex spend," he said. "Investors are starting to get a little more concerned about the money that's being spent there, and the payback for that investment." Valuations have hit levels some investors consider frothy, with the S&P 500 now trading at roughly 23 times forward earnings estimates and well above its 10-year average of 18.7, based on LSEG Datastream data. High valuations in megacap technology and growth stocks present a particular risk given the worries about AI investment and spending. Companies continue to pump more money into AI and negotiate AI-related deals, such as AMD's announcement earlier this week that it will supply chips to OpenAI in a multi-year agreement. Investors are especially keen to see quarterly results for guidance because the U.S. government shutdown that began October 1 has held up official economic reports from the federal government. The information void has made it more difficult to get a sense of how the economy is doing and how the Federal Reserve might proceed with interest rates. The U.S. central bank last month cut rates for the first time since December amid labor market weakness. Still, mostly upbeat economic data during the last quarter likely means third-quarter S&P 500 earnings and sales growth will surpass consensus expectations, according to Goldman Sachs' chief U.S. equity strategist, David Kostin, and his team. Goldman strategists wrote in a recent note that they expect companies to have maintained their profit margins, even as tariffs "were likely a larger headwind to profits in 3Q than they were during 2Q," and said customs duties rose 33% over that period to $93 billion. Sales likely grew 5.7% for S&P 500 component companies compared with the year-ago quarter, according to LSEG. Sales rose 6.4% in the second quarter and 5% in the first quarter. An investment banking rebound is expected to have helped push the six largest U.S. banks to stronger third-quarter earnings.    In the second quarter, S&P 500 earnings grew 13.8%, while analysts at the start of July estimated just 5.8%, LSEG data showed. "So far neither tariffs nor economic uncertainty by the consumer have had a negative impact" on earnings growth, said Oliver Pursche, senior vice president and advisor for Wealthspire Advisors in Westport, Connecticut. (Reporting by Caroline Valetkevitch; Editing by Alden Bentley and Richard Chang)

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By Marc Jones LONDON (Reuters) -Global financial regulators have laid out plans for closer monitoring of artificial intelligence risks as banks and other parts of the financial industry ramp up the use of AI. Banks have been broadly optimistic that AI will make them more productive, but regulators around the world have expressed concerns about its potential impact on financial stability. The G20's risk watchdog, the Financial Stability Board, said in a report on Friday that if too many institutions end up using the same AI models and specialised hardware, this could lead to herd-like behaviour. "This heavy reliance can create vulnerabilities if there are few alternatives available," the board said. A separate study published by the central bank umbrella group, the Bank for International Settlements, added there was an "urgent need" for central banks, financial regulators and supervisory authorities to "raise their game" in relation to AI. "There is a need to upgrade their capabilities both as informed observers of the effects of technological advancements and as users of the technology itself," the BIS said. The United States, China and other countries around the world are currently racing to lead the development of revolutionary, machine-learning technologies. The FSB report said that while AI could amplify market stress, there was currently "little empirical evidence that AI-driven market correlations affect market outcomes". It added that financial institutions were also at risk of more AI-related cyberattacks and AI-driven fraud. Some regions have already taken the first steps towards regulating AI, including the European Union, whose Digital Operational Resilience Act (DORA) came into force in January. (Additional reporting by Elizabeth Howcroft; editing by Mark Potter and Mark Heinrich)

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By Nora Eckert STANTON, Tenn (Reuters) -Stanton, Tennessee – population 450 – welcomed a massive new neighbor a few years ago: a Ford electric-truck and joint venture battery plant slated to employ 6,000 workers. Ford’s 2022 groundbreaking triggered an influx of construction activity into the former cotton-and-soybean farmlands outside of Memphis. Hard-hatted workers filled local diners. Developers scrambled to build homes and fire stations. Stanton is quieter these days. Ford over the past 18 months repeatedly delayed phases of the project. The EV truck plant is slated to begin initial production in 2027 and start sending deliveries the next year, a timeline delayed several times from the original plan of coming online in 2025. Ford said it "will be nimble in adjusting our product launch timing to meet market needs and customer demand while targeting improved profitability." The Ford complex is part of the so-called Battery Belt, a swath of factories stretching across the U.S. heartland that spans from Georgia to Indiana. Roughly two dozen battery projects worth tens of billions in investment have been announced this decade, promising to inject tens of thousands of jobs in Republican-dominated states like Georgia and Kentucky. By last year, though, Americans’ waning enthusiasm for electric cars led automakers to delay or scrap some factory projects. Now, the additional fallout from U.S. President Donald Trump’s recent policy changes is descending on the Battery Belt. Ford CEO Jim Farley last week offered the prediction that electric-car sales could fall by around 50% following the Sept. 30 expiration of a $7,500 tax credit for buyers, echoing other gloomy forecasts for the EV market. The uncertain fate of these massive, high-tech factories and their employment has rattled the small rural communities that spent years hitching their economic futures to these projects. "That's on everybody's mind, quite frankly," said Allan Sterbinsky, who retired as mayor of Stanton in December and advocated for the site for years before Ford came to town. Some residents worry that Ford will never follow through on the plant, the former mayor says. Others hope the company will repurpose the 3,600-acre site if demand doesn't increase for EVs. A Ford spokesperson pointed to the automaker's community work in Stanton, including grants to public safety organizations as part of a broader $9 million commitment to the area.  A Reuters review of U.S. battery-investment plans shows those worries are justified. The industry appears headed toward a huge glut of factory capacity, if all those projects were to move ahead as planned.  By 2030, the planned battery plants would provide the capacity to produce 13 million to 15 million EVs annually, according to figures provided to Reuters by research firm Benchmark Intelligence. But the industry now might only need about one-quarter of that factory space. S&P Global Mobility predicts only around 3 million EVs will be produced that year, and some would likely use batteries imported from other countries. Some of that excess roughly 10 million-EV worth of battery capacity would likely be used for hybrids and extended-range EVs as well as the booming energy storage industry, but there is still a sizable gulf, said Stephanie Brinley, S&P Global Mobility automotive analyst. The demise of the $7,500 tax credit – which had been in place for more than 15 years to persuade Americans to try green cars – is only the highest profile of several anti-EV measures put forth by the Trump administration. Combined, they further jeopardize battery projects and other electric-car-related investments, experts say. In the last few months, several automakers have canceled, delayed or downsizedEV projects.  Meanwhile, a pot of tens of billions of dollars available to companies that make EV batteries domestically has tighter restrictions that will likely reduce the amount of federal money that flows to the battery sites. “All of a sudden, much of what was originally going to benefit from these credits now no longer can to a large degree,” said Jennifer Stafeil, tax auto sector lead for KPMG. Trump has said he is not anti-EV, but prefers that consumers decide what cars to buy, without government influence. He also has criticized EV-friendly regulations implemented under former President Joe Biden, which Trump has said were costly and threatened American auto jobs. One of the nation’s largest EV projects, Hyundai Motor’s $12.6 billion assembly plant and joint-venture battery factory near Savannah, Georgia, is moving ahead. Last month the project suffered a setback when federal law enforcement raided it. Hyundai has said the fallout would delay the battery plant by at least two to three months.  In the three years since Hyundai announced the megasite, 21 suppliers have opened operations near the site. "Hyundai is committed to offering a diverse product lineup, including internal combustion, hybrid, plug-in hybrid, and EV models. We understand that every customer is unique, and we strive to meet a wide range of needs," a spokesperson said.  The complex is gearing up to hire 8,500 employees by 2031, and is paying wages 25% above the county average, said Trip Tollison, president of the Savannah Economic Development Authority. Tollison acknowledged that some in the community worry about the uncertain future of the nascent EV industry that underpins all that development. He is hopeful Hyundai can flexibly shift to hybrid production if the EV market doesn’t take off. “That's how you provide opportunities like this to lift people out of poverty,” he said. (Editing by Mike Colias and Anna Driver)

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