Brussels Edition: ECB hikes rates

The European Central Bank raised interest rates by 25 bps today, as inflation bites ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

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Welcome to the Brussels Edition. I’m Suzanne Lynch, Bloomberg’s Brussels bureau chief, bringing you the latest from the EU each weekday. Make sure you’re signed up. The European Central Bank raised interest rates by a quarter-point to 2.5% today, its latest effort to respond to the inflation jump wrought by the war in Iran. The move, which follows June’s rate hike, was broadly expected, with analysts now looking for clues as to additional moves by year-end. ECB officials themselves have given differing views, with some stressing the need for further rises and others urging caution. The reality is that the eurozone economy is now staring down the barrel of renewed inflationary pressures, prompted by the rise in energy prices because of the conflict in the Middle East. As we reported overnight, Iran said it is ready for a more intense war and prepared to escalate if the US continues its attacks. Natural gas prices have gained more than 120% since the start of the war, reaching a three-year high last week.  Spiraling gas prices are among the factors behind the recent selloff in Europe’s bond market, with yields in some of the EU’s largest economies reaching multi-year highs. The market is hungry for news on the ECB’s direction on rates, and the press conference today by its president, Christine Lagarde, will be closely watched for any inklings on that and also on her own career plans. Lagarde, whose term runs until October 2027, is due to publish an autobiography, titled Lady First, in January as speculation intensifies about an early departure. The book will feature prominent figures including former US Secretary of State Hillary Clinton, former French President Nicolas Sarkozy, rock star Bono and fashion designer Diane von Furstenberg, according to its German publisher. As always with Lagarde, speculation is rife about a possible return to French politics, while Bloomberg reported that the World Economic Forum, known for its annual gathering in Davos, is still courting her to take over its leadership. As the head of one of the most important institutions in European finance, Lagarde’s next move will have profound consequences for the governance of the euro area economy.  The Latest Anthropic has handed the EU’s cybersecurity agency access to its powerful Mythos artificial intelligence model, more than three months after first signaling the bloc would be given access. A plane carrying Ukrainian President Volodymyr Zelenskyy was almost hit by a drone when it was taking off from Moldova en route to Oslo on Tuesday, Norwegian Prime Minister Jonas Gahr Store said. The European Parliament’s environment committee agreed to seek amendments to a carbon market supply-control mechanism to prevent a build-up of emission permits in a reserve used to stabilize prices. Schroders is betting Hungary’s push toward euro adoption will deliver fast convergence-trade gains as the country’s government yields move toward those of peers already in the currency union. Germany’s Defense Ministry is considering blocking access to a highly sensitive wartime crisis-response plan to the state premier’s office in Saxony-Anhalt if the far right takes power in the eastern region. Seen and Heard on Bloomberg PGIM Credit Global Economics Deputy Head Katharine Neiss told Bloomberg Television that US 10-year yields above 5% are not “implausible.” “A lot of it will come down to the actions of the Fed,” she said, adding that “comfort that this is an inflation-fighting Fed” is needed to cap those long-end rates. Chart of the Day Sweden’s Social Democrat-led opposition has a narrow lead days ahead of a general election, as candidates make late pitches to win the support of undecided voters. The four-party opposition bloc is set to secure 50.7% of the vote versus 48.1% for the current government of Prime Minister Ulf Kristersson in Saturday’s election, according to the poll published by broadcaster TV4. Coming up EU Commissioner Valdis Dombrovskis and Irish Foreign Minister Helen McEntee speak at the Riga Conference, Latvia later today German Chancellor Friedrich Merz meets UAE President Mohamed bin Zayed Al Nahyan later today European Parliament President Roberta Metsola attends G7 speakers’ meeting in Paris tomorrow Final Thought When Britain’s super rich look for more tax-friendly jurisdictions to call home, they are increasingly spoiled for choice. A growing number of competing cities — all within a few hours flight and often offering better weather and lifestyles — are honing their pitches. Previously, talk of London’s rivals focused on places like Geneva, Monaco and Milan. Athens has become the latest destination of choice, with Millennium Management preparing to open its first office in the Greek capital, following news that hedge fund trader Chris Rokos is quitting the UK for Greece. The Acropolis overlooking buildings in the Monastiraki area in Athens. Photographer: Ioana Epure/Bloomberg Like the Brussels Edition? Don’t keep it to yourself. Colleagues and friends can sign up here. How are we doing? We want to hear what you think about this newsletter. Let our Brussels bureau chief know. We’re improving your newsletter experience and we’d love your feedback. If something looks off, help us fine-tune your experience by reporting it here. Follow Us You received this message because you are subscribed to Bloomberg’s Brussels Edition newsletter. If a friend forwarded you this message, sign up here to get it in your inbox. Unsubscribe Bloomberg.com Contact Us Bloomberg L.P. 731 Lexington Avenue New York, NY 10022 |

Why the Treasury’s Buyback Sparked a Bitcoin Rally

From The Editor Managing Editor’s Note: The Anthropic IPO is coming… an estimated $2–$4 trillion listing. OpenAI is right behind. And 100 more breakthrough tech IPOs are already in the pipeline. All told, an estimated $8.5 TRILLION in new IPO wealth is about to flood the market. The Wall Street Journal is calling it “The Great IPO Frenzy of 2026.” The last time anything close to this hit the market, it helped create more than 2.8 million first-time millionaires in America. That was an “all-in” moment… Now our colleague Jeff Brown believes this current record-breaking IPO season is another. But during his 30 years inside Silicon Valley, he’s learned that Wall Street is going to get rich and regular folks are going to get left behind. That’s why he’s holding The Super IPO Summit on September 16. He says it could be the most important briefing of his career. To join him, simply RSVP here with one click. Why the Treasury’s Buyback Sparked a Bitcoin Rally The Treasury's bond buyback stoked debasement fears and drove Bitcoin higher – but the chart is now flashing a warning at a key level. Here's what's next… Written by Larry Benedict Published on Sep 10, 2026 An announcement by the Treasury has ignited fears that money printing could return. In order to stem the rise in longer-dated bond yields, Treasury Secretary Scott Bessent announced that a bond buyback program would triple in size from $2 billion to $6 billion. Those amounts are tiny next to the $40 trillion in U.S. debt outstanding. But the move still sent the market a message: Public officials are willing to take action. Rather than calming the bond market, assets geared toward something called “the scarcity trade” felt the most significant impact. Here’s why the announcement sparked a rally in Bitcoin… and what the chart says about the next move.

Recommended Links First, He Predicted the SpaceX IPO... Now His Next Big Call Could Make You Rich In 2023, Jeff Brown predicted the SpaceX IPO – the biggest IPO in history – when Wall Street said it was impossible. Now he says SpaceX was just the starting gun: Anthropic, OpenAI and 100+ more tech IPOs worth an estimated $8.5 trillion are on the way. On Wednesday, September 16, at 8 p.m. ET, Jeff reveals Phase 2 of his IPO plan – a new AI-powered strategy that beat the market by an average of 1,740% over 12 months in 30 years of backtests. Register here with a single click. (When you click the link, your email address will be automatically added to the event guest list.) Legendary Trader Makes the Boldest Prediction of His 40-Year Career In 2020, Larry Benedict told CNBC the market was about to fall. Few believed him. Within weeks, markets dropped 34% but his readers had the chance to make 62%. In 2022, he predicted the worst market in a generation. He went 11-for-11. One trade returned 117% in under a month. Now he's speaking out again… and he says what's coming makes both of those look like a warm-up. Click here to hear his new prediction and get his #1 ticker free.

The Debasement Trade The Treasury’s buyback program invoked bad memories of quantitative easing (QE), the Federal Reserve’s program to create money in order to purchase Treasury securities. QE increased the money supply, and investors questioned whether the Fed was simply printing money to cover government deficits. This time, the Treasury’s move isn’t exactly QE. The buyback program is designed to issue short-term debt to buy back long-term debt, which means no net change in the money supply. But that hasn’t stopped fears of currency debasement. Currency debasement means a currency loses value – usually because the government expands the money supply. While Treasury yields didn’t respond much to the announcement, the real impact was felt in the U.S. dollar and assets sensitive to its movements. Scarce assets tend to perform well when debasement fears are on the rise and the U.S. dollar is weakening. Traditionally, precious metals were the primary beneficiaries of debasement fears. But in modern times, Bitcoin has emerged as the digital equivalent. Bitcoin jumped following the announcement, and the chart tipped a rebound was in store. Now evidence is emerging that Bitcoin’s rally could be prone to a reversal. Tune in to Trading With Larry Live Each week, Market Wizard Larry Benedict goes live to share his thoughts on what’s impacting the markets. Whether you’re a novice or expert trader, you won’t want to miss Larry’s insights and analysis. Even better, it’s free to watch. Visit us on YouTube to catch the latest! Bitcoin Rally Losing Steam Fears over currency debasement are delivering a boost to Bitcoin. But it was no surprise that a rally unfolded when it did. The Bitcoin price area around $60,000 has been tested multiple times this year. It is also a key congestion zone tested numerous times in 2024. That makes $60,000 an important “make-or-break” level. While Bitcoin was testing support, a positive momentum divergence formed. Take a look at the chart: The shaded area shows the $60,000 support level. At the start of June, Bitcoin started testing support at “1.” A second test at “2” produced a lower low in price. But a positive divergence on the Relative Strength Index (RSI) showed downside momentum was fading. That helped spark a rally, which picked up steam as Bitcoin surged above the 50-day moving average (MA – blue line) following the Treasury’s buyback announcement. But the current move has left Bitcoin extended far above the 50-day MA. Meanwhile, a negative divergence is now forming in the RSI. That means Bitcoin is showing signs of a reversal lower. Bond market intervention and QE fears will spark renewed volatility in Bitcoin. That means this is an asset to keep an eye on in the coming weeks. For right now, the evidence suggests that Bitcoin’s rally has gone too far. Happy Trading, Larry Benedict Editor, Trading With Larry Benedict Get Instant Trade Alerts on Mobile! Click the icon below from your mobile device to download The Opportunistic Trader app today for one-tap access to trade alerts, issues, and model portfolios for all of Larry’s services. Available in the app store on Android and iPhone. More stories like this Read the latest analysis on hot growth stocks, and market-moving developments Why the Yen Carry Trade Could Rattle U.S. Markets The yen carry trade helped fuel the asset boom. Now a rallying yen and shifting Fed and BoJ rate paths could force an unwind. Here's what traders should watch… Sep 9, 2026 • 3 min read The Market Doesn’t Care If You’re Bullish or Bearish Here’s why a bullish or bearish opinion can quietly cost you money – and why trading the setup in front of you beats trying to predict the market… Sep 8, 2026 • 3 min read The Trading Rule That Separates Winners From Everyone Else The smartest traders take a small profit every day – and let it compound. Here’s how discipline and consistency build real capital… Sep 7, 2026 • 4 min read 1125 N Charles St, Baltimore, MD 21201 www.opportunistictrader.com To ensure our emails continue reaching your inbox, please add our email address to your address book. This editorial email containing advertisements was sent to reunisoft.cryptonews@blogger.com because you subscribed to this service. To stop receiving these emails, click here. The Opportunistic Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-888-208-6550, Mon–Fri, 9am–5pm ET, or email us here. © 2026 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. Privacy Policy | Terms of Use