In a big move for crypto in Latin America, Binance, the top dog in cryptocurrency exchanges worldwide, just snagged its 21st license, this time from Brazil’s Central Bank.

According to a Cointelegraph report, this green light lets Binance work as an official broker-dealer, marking it as the first in the country to do so.

It’s a pretty big deal as Brazil makes strides to regulate the fast-growing crypto industry.

Strategic move in São Paulo

Thanks to this new approval, Binance is all set to take over Sim;paul, a São Paulo-based investment platform that deals in securities and electronic money.

This acquisition is a big boost for Binance’s game plan in Brazil, Latin America’s most populous nation.

By integrating Sim;paul, Binance can offer a wider range of services, making it a one-stop shop for investors.

When they announced the approval, Binance reported a whopping $18.2 billion in 24-hour trading volume.

To put that in perspective, their closest rival, Bybit, saw just $6.3 billion, according to Messari.

This shows Binance isn’t just leading in Brazil, but it’s also a powerhouse on the global stage.

Brazil’s crypto regulation journey

Binance’s new license is part of Brazil’s ongoing work to get a handle on the crypto market.

Guilherme Nazar, the head of Binance for Latin America, noted that Brazil is making big steps forward.

He told Cointelegraph that the government has rolled out a comprehensive plan, inviting feedback from everyone involved, which should help finalize the rules by mid-year.

Brazil holds the spot as the second-largest market for crypto adoption in Latin America.

Just in 2024, they saw over $90.3 billion in crypto value, according to Chainalysis from October 9.

This surge shows a growing interest in crypto among Brazilian investors and institutions, driving the need for clear regulations to keep things running smoothly.

Binance’s global reach

Brazil’s license is just the latest in Binance’s series of global expansions, with earlier moves into places like Argentina, India, Kazakhstan, and Indonesia.

The speed at which Binance is grabbing these licenses shows their dedication to following the rules and their keen eye on regions where crypto is catching on.

By becoming a broker-dealer in Brazil, Binance not only ups its credibility but also gets ready for the new rules that are set to shape crypto’s future there.

As Brazil aims to be a leader in the crypto world, Binance’s achievement in getting regulatory approval underscores the growing acceptance of crypto as a real financial player.

Future prospects for Binance in Brazil

With the crypto market always changing, Brazil’s forward-thinking approach is likely to create a stronger environment for traders and investors.

As more businesses see the value in crypto, Binance’s strategic moves and compliance with local laws could bring them big rewards down the road.

Binance’s success in nabbing this broker-dealer license isn’t just a win for them—it’s a sign of progress for the whole crypto scene in Brazil and beyond.

As regulations evolve, everyone from stakeholders to investors will be keeping a close eye on how these shifts will impact the market and the continued spread of crypto throughout Latin America.m

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Annual deliveries for automaker Tesla fell for the first time in years, sending its share price down by more than 6% in early trading hours.

By 9:57 am, the stock had regained some of the losses, and was down by 3.61%.

The company reported 495,570 deliveries for Q4 of 2024, falling short of analysts’ expectations of 504,770.

Annual deliveries dropped to 1.79 million, a slight decline from 1.81 million in 2023, marking the company’s first annual drop in years.

459,445 vehicles were produced in Q4, bringing Tesla’s annual production to 1.77 million units for 2024.

Tesla delivery numbers miss estimates

Analysts surveyed by StreetAccount had anticipated higher Q4 delivery numbers, with a consensus of 504,770 vehicles, largely driven by strong expectations for Tesla’s popular Model 3 and Model Y.

Independent Tesla researcher Troy Teslike predicted 501,000 deliveries.

However, Tesla’s reported numbers revealed a shortfall, signalling softer-than-expected demand despite significant price cuts and buyer incentives.

Tesla stock faces a volatile year

Tesla shares experienced a rollercoaster year in 2024. The stock soared 63% by year-end, recovering from a 29% plunge in the first quarter, its worst quarterly performance since 2022.

While a late-year rally saw Tesla shares hit a record high, challenges such as declining deliveries, pricing pressure, and Elon Musk’s involvement in politics raised questions about the company’s focus.

Did Musk’s political involvements distract him?

Elon Musk’s high-profile involvement in President-elect Donald Trump’s election campaign, contributing $277 million to Republican candidates, became a significant talking point in 2024.

Musk’s new role as co-leader of Trump’s advisory group tasked with cutting federal spending and regulations sparked concerns about whether his political foray might distract him from Tesla’s core operations.

Auto Forecast Solutions Vice President Sam Fiorani told CNBC that Musk’s entry into politics could have “pulled his focus away from his core business” though the impact may not be reflected in the company’s numbers until Q1 2025.”

Chinese and European carmakers increased competition for Tesla

Tesla’s dominance in the EV market faced headwinds in 2024 as competitors like BYD, Ford, and Hyundai gained traction.

In Europe, Tesla’s sales dropped 14% year-on-year through November, with November registrations falling from 31,810 in 2023 to 18,786 in 2024 as European auto giants BMW and Volkswagen upped their game.

In China, Tesla struggled to keep pace with the broader EV market’s 8% growth, with Model Y sales rising just 5%.

Meanwhile, BYD and other Chinese brands such as Chery, Li Auto, Jetour, LeapMotor, and Aito significantly outpaced Tesla’s growth.

BYD has also been expanding aggressively by establishing manufacturing plants outside China and ramping up its exports.

Patrick George, editor in chief of InsideEVs, told CNBC that he thinks Tesla still does many things better than any other EV maker, especially when it comes to its charging network.

But Tesla’s biggest operational challenge in the latest quarter was “the nuts-and-bolts job of being a car company.”

Cybertruck challenges and inventory buildup

The much-anticipated Cybertruck, which debuted in late 2024, faced hurdles as Tesla grappled with production inefficiencies and rising inventory.

Workers on the Cybertruck assembly line were temporarily sent home during Q4, indicating potential efforts to prevent oversupply.

George said that Tesla made a mistake not bringing “more affordable EVs in 2024,” and added that the Cybertrucks are “piling up on used car lots.”

The angular steel Cybertruck starts at around $80,000.

Way ahead for Tesla

Despite challenges abroad, Tesla maintained dominance in North America.

Aggressive price cuts and incentives boosted sales, particularly for the Model Y SUV.

However, these measures came at the cost of thinner margins and a buildup of unsold inventory.

In a bid to regain momentum, Tesla aims to launch lower-cost and autonomous EVs in 2025.

Musk projected 20%-30% growth over 2024, driven by advancements in autonomous technology and increased production of affordable models.

While Tesla remains a leader in EV innovation, growing competition, operational challenges, and external distractions could shape the company’s trajectory in the years to come.

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The US labor market continues to display unexpected strength as the year closes, with new applications for unemployment benefits dropping to their lowest level in eight months.

This significant decline in jobless claims points to a continued trend of low layoffs, reinforcing the notion of a robust job market that is seemingly impervious to economic headwinds.

This data, released by the Labor Department on Thursday, arrives amidst a flurry of positive economic indicators, including strong consumer spending, and serves as further rationale for the Federal Reserve’s cautious approach to interest rate cuts in the coming year.

Curbing the Fed’s appetite for aggressive rate cuts

“A stable job market will squelch the Fed’s appetite for cutting rates aggressively amid nagging services inflation,” Jeffrey Roach, chief economist at LPL Financial, told Reuters.

The latest report revealed that initial claims for state unemployment benefits fell by 9,000, reaching a seasonally adjusted 211,000 for the week ending December 28th.

This figure marks the lowest level since April and significantly undercuts economists’ projections of 222,000 claims for the week.

While there were significant drops in unadjusted claims in states like California and Texas, a few states including Michigan, New Jersey, Pennsylvania, Ohio, Massachusetts, and Connecticut saw an increase in filings.

The four-week moving average of claims, which provides a clearer picture of the underlying trend, also decreased, falling to 223,250.

Job market remains resilient amidst year-end volatility

Although jobless claims tend to fluctuate around the year-end holidays, the underlying trend remains consistent with a labor market that is slowly moderating but still firmly holding its ground, and this deceleration is not a sign of a broader economic downturn.

In response to the news, the dollar strengthened against a basket of currencies, while US stocks were poised for a positive opening.

The Federal Reserve, after implementing three consecutive rate cuts, lowered its benchmark overnight interest rate to a range of 4.25%-4.50%.

However, the central bank has signaled a more cautious stance on future cuts, projecting only two rate reductions this year, as opposed to the four that were forecasted in September, given the job market’s and economic resilience.

Long-term unemployment and hiring hesitancy

While the job market is supported by low levels of layoffs, employers are exhibiting a reluctance to significantly increase hiring.

This hesitancy stems partly from the extensive hiring seen during the recovery from the Covid-19 pandemic, leading to a situation where some workers who have lost their jobs are facing extended periods of unemployment.

The median duration of unemployment had approached a three-year high in November.

The number of people receiving benefits after an initial week of aid, a proxy for hiring, decreased by 52,000 to a seasonally adjusted 1.844 million during the week ending December 21st, according to the claims report.

Jobless claims data sets stage for key employment report

Economists suggest that some of the persistent elevation in continuing claims may be attributed to difficulties in adjusting for seasonal fluctuations in the data.

They also project that the unemployment rate will remain steady at 4.2% in December.

The government is scheduled to release its closely watched December employment report next Friday, which will provide further insights into the overall health of the labor market and economic trajectory.

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President Joe Biden has reportedly decided to block Nippon Steel’s proposed $15 billion acquisition of US Steel, according to the Washington Post on Thursday, citing unnamed administration officials unauthorized to discuss the matter publicly.

Earlier, the Committee on Foreign Investment in the United States (CFIUS) referred the matter to the President after failing to reach a consensus.

Nippon Steel had urged Biden to consider the measures it has taken to address security concerns.

“We have made significant commitments to grow US Steel and ensure national security is safeguarded,” the company had stated.

US Steel had echoed the sentiment, emphasizing that the deal enhances both US economic and national security.

Nippon Steel now faces a hefty $565 million penalty to US Steel.

The company may pursue legal action against the US government as the merger is blocked.

The acquisition is pivotal to Nippon Steel’s expansion strategy, which aims to increase its global steel production capacity from 65 million metric tons to 85 million tons annually.

The company views the merger as a cornerstone to achieving its long-term goal of surpassing 100 million tons of production.

The outcome will have far-reaching implications for the global steel industry and US-Japan trade relations.

Meanwhile, the United Steelworkers union has voiced strong concerns over Nippon Steel’s latest proposal, which offers the US government veto power over any future reductions in US Steel’s production capacity should the merger gain approval.

Despite this concession, the union remains opposed to the merger, arguing that Nippon Steel has failed to make long-term commitments to maintaining production levels or investing in domestic capacity at integrated facilities, Reuters reported.

In a statement released on Thursday, the union criticized the proposal, stating,

“Protecting capacity only means mothballing our equipment, allowing it to rust to the point where restarting becomes impossible.”

They further described the proposal as a “Hail Mary pass destined to fail.”

Earlier reports indicated that Nippon Steel had proposed granting the US government oversight on production cuts in an attempt to win President Joe Biden’s approval for its acquisition of US Steel.

Nippon Steel, which secured a premium deal to acquire US Steel in 2023, has faced mounting opposition from the Steelworkers union and political leaders.

The union has consistently opposed the merger, citing concerns over job security and the future of domestic steel production.

Responding to the union’s criticism, US Steel defended the deal, stating,

“This transaction represents the best opportunity to ensure that US Steel, along with its employees, communities, and customers, continues to thrive well into the future.”

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China plans to broaden its consumption subsidies to include smartphones and other electronics in a bid to boost domestic spending as external challenges loom.

The country’s trade-in program, originally focussed on home appliances and cars, will, from this year, begin to include personal devices like phones, tablets, smartwatches, etc., officials from the National Development and Reform Commission (NDRC), the nation’s top economic planning agency said in a briefing Friday.

The move aligns with the government’s 2025 priorities, which, for only the second time in over a decade, place a significant emphasis on boosting consumption and domestic demand.

Why is China offering smartphone subsidies?

A core part of the program is increasing sales of consumer electronics, a sector that has seen a slowdown as post-COVID consumers hold onto their devices longer due to lackluster product updates and tighter budgets.

The expansion is expected to rejuvenate the world’s largest smartphone market, drive up sales of brands like Huawei Technologies Co. and Xiaomi Corp., as well as boost businesses of e-commerce platforms like Alibaba Group Holding, and JD.com, which are popular among device buyers.

The move is also planned to offset effects of any new US tariffs on Chinese exports which have been a key economic driver for the country.

How will China fund the smartphone subsidies?

The government will “significantly” increase the sale of ultra-long special treasury bonds to fund the program, which also encourages companies to upgrade their equipment, according to Yuan Da, deputy secretary-general of the National Development and Reform Commission.

The central government committed 300 billion yuan ($41.1 billion) from special treasury bonds in mid-2024, supplementing efforts by local governments.

The funds have already contributed to a notable uptick in car and appliance sales since September, bolstering the broader economy.

In addition to personal electronics, the program includes subsidies for upgrading business equipment, with new provisions for agricultural facilities and other sectors.

Yuan Da indicated that specific details on the expanded program would be released soon.

How has China’s trade-in program fared?

According to a report by South China Morning Post published in October, since the trade-in program’s launch, over 8.23 million consumers have purchased 11.78 million major appliances across eight categories, generating more than 55.79 billion yuan in sales.

In the automotive sector, the Ministry of Commerce’s trade-in platform had received over 1.27 million subsidy applications as of October 7, driving new vehicle sales worth more than 160 billion yuan.

Notably, more than 60% of these applications were for new energy vehicles.

Data from the China Automobile Dealers Association further highlights robust growth, with retail passenger-vehicle sales reaching 2.1 million units in September—a 4% year-on-year increase and a 10% rise compared to the previous month.

Historical parallels and forward outlook

China’s latest stimulus mirrors a successful subsidy plan introduced in 2007 to counter the global financial crisis.

That initiative, which covered rural residents’ purchases of home appliances, cars, and computers, boosted domestic consumption until it ended in 2013.

With potential new US tariffs threatening China’s export-driven growth, the government’s focus on domestic demand reflects a proactive approach to economic resilience, signaling its commitment to sustaining consumer spending and industrial upgrades.

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