UK investors turn away from US equities

UK investors pulled more than £1bn from equity funds in July, according to Calastone’s latest Fund Flow Index, marking the largest monthly outflow since October 2024 and the biggest outside of tax-driven selling since the Truss mini-budget in 2022. Net withdrawals from equity funds totalled £1.13bn, a sharp rise from June’s £98m. Selling was broad-based, with every major equity fund sector seeing outflows except for Europe-focused funds, which attracted £280m in net inflows.

Global equity funds posted a rare second consecutive month of net selling, something not previously recorded in Calastone’s 10-year dataset, with £281m withdrawn in July after £365m in June. Outflows from North American funds reached £330m, the first since October 2024, while UK-focused funds saw £543m of withdrawals, below the three-year monthly average of £858m. Funds targeting Asia-Pacific, emerging markets, Japan and specialist sectors also recorded redemptions.

Calastone noted that the selling was driven largely by reduced buying of passive equity funds rather than a sharp rise in selling activity. Net selling of active equity funds increased by £150m to £1.59bn, but the biggest shift was a “buyer’s strike” in passive funds, particularly those heavily weighted towards US equities.

Edward Glyn, head of global markets at Calastone, said: “The contrarian view is starting to win out, at least as far as the US market is concerned. US stocks are currently the most expensive they have ever been compared to revenues and at their highest since the dot-com bubble against other measures like GDP and corporate earnings. In volatile and uncertain times, markets priced for perfection are an increasingly dangerous place for capital.”

Calastone’s data suggests the US was the main driver of July’s outflows. Global equity funds, which typically carry 60-70% US exposure, mirrored sentiment towards North American funds. The recent rally in US markets has been led by a small group of technology companies, contributing to stretched valuations.

By contrast, European funds appear to be benefiting from a rotation away from US-heavy portfolios. Meanwhile, sentiment towards UK equities, though still negative, showed signs of improvement, with smaller outflows than in recent months.

Beyond equities, fixed income markets also saw pressure. Bond funds recorded £122m of outflows, mainly from sovereign bond products, reflecting choppy market conditions. Safe-haven money market funds maintained steady inflows of £217m, as investors continued to seek stability amid equity market turbulence.

 

J.P. Morgan Payments integrates supply chain finance with Oracle ERP

J.P. Morgan Payments has launched a supply chain finance (SCF) capability within Oracle Fusion Cloud Enterprise Resource Planning (ERP), with FedEx among the first corporates to adopt the solution. The integration, delivered via Oracle B2B, embeds J.P. Morgan’s SCF functionality directly into Oracle’s cloud ERP environment. This allows companies to configure the capability natively, removing the need for custom development. According to J.P. Morgan, the process can be activated and set up far faster than the typical six-month build for a standalone solution.

Under the model, when a buyer such as FedEx approves an invoice, suppliers can either accept payment on extended terms or opt for early settlement through J.P. Morgan at financing rates linked to the buyer’s credit profile. The bank says this approach offers flexibility for buyers while giving suppliers the option of accelerated payment.

FedEx’s corporate development and treasury teams worked with J.P. Morgan and Oracle to design the feature. Trampas Gunter, corporate vice president of corporate development and treasurer at FedEx, said the arrangement had “strengthened our financial position and enhanced our operational resilience.”

The capability forms part of J.P. Morgan Payments’ Integrated Trade Finance for Oracle Fusion ERP, first announced at Oracle CloudWorld 2024. Alongside SCF, the platform incorporates liquidity management, account solutions and other treasury tools. FedEx has also implemented a liquidity management framework using J.P. Morgan’s Liquidity & Account Solutions (L&AS) and Kinexys, the bank’s blockchain-based payments platform, to manage notional pools across Europe and Asia-Pacific.

The launch builds on a partnership between J.P. Morgan Payments and Oracle dating back to 2022, aimed at embedding treasury and trade finance tools within Oracle Cloud ERP. The bank says dozens of mutual corporate clients now use these integrations for improved automation, real-time data access and payment processing.

Other modules available through the integration include banking connectivity with real-time account data and payment initiation, an AI-powered expenses function to speed up reimbursements, and a virtual card capability that enables optimised business-to-business invoice payments with straight-through processing for suppliers.

 

ISO 20022 adoption advances cross-border real-time payments

The U.S. Faster Payments Council (FPC) has published new research exploring how ISO 20022 messaging is being applied to cross-border real-time payment use cases. The report, produced by the FPC’s Cross-Border Payments Work Group and sponsored by Mastercard, examines how the standard is enabling faster, more data-rich transactions across international markets.

The study focuses on three areas where ISO 20022 is delivering measurable impact: buyer-to-supplier payments, tourism and retail transactions, and financial inclusion. Each example highlights how the structured, standardised format improves payment speed, accuracy and transparency, while reducing reconciliation times and transaction costs.

In buyer-to-supplier payments, U.S. manufacturers are streamlining cross-border transactions by embedding richer data in payment messages, allowing for quicker matching of payments with invoices and improving supply chain efficiency. In tourism and retail, the standard supports instant foreign exchange payments, such as QR code transactions in Brazil, enabling smoother consumer experiences for travellers. For financial inclusion, ISO 20022 is helping entrepreneurs in developing economies access global markets, connecting them to international payment systems and providing real-time settlement capabilities.

The report notes that ISO 20022 is more than a technical specification, serving as a strategic enabler of payments innovation. By providing a common data language, it allows financial institutions, fintechs and businesses to bridge disparate systems and reduce operational friction. The standard also supports regulatory compliance through improved data quality and interoperability.

Public policy goals are another area of impact, with ISO 20022 facilitating initiatives such as Nexus and Mandala, which aim to connect payment infrastructures and expand access to financial services in underserved communities. This aligns with efforts by governments and industry participants to create more open, inclusive and resilient payment environments.

As adoption of ISO 20022 accelerates worldwide, the FPC report suggests it is laying the groundwork for a more connected cross-border payments landscape, one in which faster, smarter and more inclusive transactions can be achieved through common standards.

 

Visa, AAHK and Shanghai Commercial Bank pilot Hong Kong digital supply chain finance

Visa, Airport Authority Hong Kong (AAHK) and Shanghai Commercial Bank have launched a pilot scheme to digitise supply chain finance for SME freight forwarders in Hong Kong. The initiative marks the first use of live cargo data to drive real-time, pre-authorised B2B payments in the air cargo sector, with the inaugural transaction completed at Hong Kong International Airport.

The pilot targets co-loading payments, where multiple freight forwarders consolidate shipments to optimise airline capacity and costs. By linking verified cargo data from AAHK’s HKIA Cargo Data Platform with a commercial card-based working capital solution, the system aims to improve efficiency, security and cash flow while reducing delays, fraud risks and manual reconciliation.

Each transaction is backed by verified shipment data, providing a tamper-proof record that eliminates potential chargebacks and ensures payments are only released when services are confirmed. This data-driven approach also enables more accurate credit assessments by drawing on historical cargo and payment records.

The solution extends payment terms for buyers to as much as 85 days, while allowing sellers to receive funds in as few as three days, reducing the gap between invoice issuance and payment receipt. This is designed to improve liquidity for SMEs, particularly in a sector where complex arrangements between multiple parties can create settlement delays.

Shanghai Commercial Bank’s role in the pilot includes facilitating pre-authorised payments using real-time cargo verification, shortening payment cycles for sellers while giving buyers a payment-free period of up to 56 days. The bank says the model supports broader efforts to digitise trade finance under the Hong Kong Monetary Authority’s Commercial Data Interchange initiative.

For Visa, the project forms part of a wider strategy to embed secure, data-driven payments into supply chains and cross-border trade processes. AAHK sees the integration of payment solutions with its cargo data platform as a step toward building a more connected global trade ecosystem and reinforcing Hong Kong’s position as a leading international air cargo hub.

 

Africa’s infrastructure funding gap offers scope for bank growth

The “funding gap” in Africa presents a significant opportunity for banks and other lenders to expand their footprint and drive growth by financing large-scale infrastructure projects that will lay the foundation for the continent's economic advancement, according to research from Crisil Coalition Greenwich.

Africa faces a staggering infrastructure funding shortfall, with estimated annual requirements ranging from US$130bn-US$170bn, far outpacing the current US$80bn in yearly investments. This massive disparity creates a financing gap of US$50bn-US$90bn per year, underscoring the urgent need for innovative financing solutions to bridge this divide.

“As the continent's economies continue to grow and mature, the demand for infrastructure financing is poised to escalate, driving a significant increase in bond issuances, loans and other debt financing instruments,” says Aamir Hazaria, Head of Middle East and Africa Competitor Research & Analytics at Crisil Coalition Greenwich and co-author of ‘Africa's capital markets: The next frontier for investment banks’.

Traditionally, African borrowers have relied largely on Eurobond markets to meet their funding needs. However, due to constrained access to Eurobond markets in recent years, African borrowers are increasingly turning to alternative financing channels. Among the financial mechanisms now being employed across the continent are total return swaps (TRS) and synthetic financing, syndicated loans and private credit facilities, and structured derivatives and contingent deals.

“The general need for funding and the increasing use of these alternative financing tools presents a substantial revenue opportunity for global and regional banks that can provide innovative solutions,” says Bhavya Ahuja, Product Specialist for Middle East & Africa Competitor Research & Analytics at Crisil Coalition Greenwich and report co-author. “Crisil Coalition Greenwich projects the fee and interest revenue pool for banks to reach US$1.4bn by the end of 2025, representing a CAGR of 9%.”

With funding needs mounting, external debt service obligations are escalating. African nations are expected to pay US$88.7bn in 2025 alone. As African nations accumulate debt through alternative financing channels with higher interest rates and stricter terms, they may face challenges in meeting their debt service obligations, potentially triggering a vicious cycle of debt refinancing and further indebtedness.

“While the rise of unconventional financing in Africa has significant implications for the pace of development and bank revenue growth, it could also pose risks to the continent's economic stability,” says Callum Minns, Research Manager - Emerging Markets Strategy for Competitor Research & Analytics at Crisil Coalition Greenwich and report co-author. “To address these risks, a balanced approach is required; one that combines innovation with prudent risk management and tailors financing solutions to the unique needs of African economies.”

 

Standard Chartered to market Acre’s high-integrity carbon credits

Standard Chartered has signed a five-year agreement with the Government of the State of Acre in Brazil to bring jurisdictional forest protection carbon credits to market, with up to 5mn credits expected in 2026. The deal marks one of the first collaborations between a major international bank and a sub-national government aimed at financing large-scale forest conservation. Unlike project-based credits, jurisdictional credits cover an entire state and are issued under government oversight. Acre’s credits will be registered in the Architecture for the REDD+ Transactions (ART) registry, using its verified TREES methodology, which has been approved by the Integrity Council for the Voluntary Carbon Market (ICVCM).

The programme aims to protect Acre’s Amazon rainforest from deforestation while unlocking capital for regional development. Net proceeds from credit sales will follow a defined benefit-sharing strategy: 72% directed to indigenous and local communities, and 28% allocated to project management and governance.

Funding for communities will support sustainable, low-emission livestock farming, secondary forest reforestation, clearings without deforestation, and community-based tourism. Project management funds will cover forest oversight, monitoring and verification against the TREES standard, and emergency responses to extreme weather.

Standard Chartered will act as the exclusive seller, targeting buyers seeking high-integrity carbon offsets. The bank says the approach could provide a scalable template for jurisdiction-wide efforts to combat deforestation and cut emissions.

By tying carbon credit revenues directly to conservation and community development, the partnership seeks to align environmental, social, and economic goals. It also signals a shift in the voluntary carbon market towards larger-scale, government-backed schemes with rigorous verification standards, designed to offer buyers greater confidence in the environmental integrity of credits.

Marisa Drew, Chief Sustainability Officer, Standard Chartered, said: “Without deploying new market mechanisms, standing forests are unlikely to be protected because the short-term economic incentive for deforestation nearly always outweighs the perceived value of these long-term natural assets in situ. We’re leveraging our global network and carbon market expertise to address this challenge directly, offering a means to help preserve standing forests that act as vital carbon sinks, and in turn help the communities that depend on them continue to realise the economic and social returns they provide.”

 

Corpay adopts blockchain for faster FX settlements

Corpay’s Cross-Border business can now facilitate client foreign exchange (FX) conversions using J.P. Morgan’s Kinexys Digital Payments blockchain, enabling near real-time value transfers and expanded trading hours for its global customer base. Kinexys, operated by J.P. Morgan’s blockchain unit, is designed to process payments in commercial bank money on a 24/7 basis, completing transfers in less than 30 seconds in most cases. Moving funds between legacy demand deposit accounts and blockchain deposit accounts currently requires a short weekend downtime, though an enhancement is under development.

The technology allows Corpay to execute and settle trades beyond the limits of traditional fiat FX rails without tying up large liquidity reserves. In one recent transaction, a UK-based client received US dollars late on a Friday, booked an FX trade to convert into sterling, and had the pounds credited via the UK Faster Payments network within minutes—well after normal market close.

By combining blockchain settlement with existing payment networks, Corpay aims to provide clients with a blend of speed, flexibility, and reduced operational risk—positioning the service as a potential model for modernising cross-border payments and FX conversion in the corporate sector.

“We are extremely excited about this technology both from an internal Treasury liquidity use case, and a client experience perspective,” said Paul Bregg, Treasurer, Corpay Cross-Border Solutions. “Our clients now have access to greatly expanded trading hours, along with incredibly fast settlement times, less than 30 seconds in most cases. In addition, from an internal Treasury perspective, this technology greatly reduces settlement risk and settlement times between counterparties.”

 

SAP Taulia receivables financing launches in Canada

SAP has made its Taulia Receivables Financing solution available to Canadian customers with the release of SAP S/4HANA Cloud Public Edition 2508. The embedded capability allows businesses to convert outstanding invoices into cash directly within their enterprise resource planning (ERP) system, without the need for separate platforms or manual uploads.

Receivables financing enables companies to sell selected invoices to financiers at a discount, providing faster access to working capital while transferring the risk of customer non-payment to the purchaser. The integration within S/4HANA Cloud is intended to streamline the process, from invoice generation to reconciliation.

The system connects to a network of funding partners, offering pricing for eligible receivables in near real time. Once approved, funds can be received within 24 hours. Journal entries and payment records are automatically generated, reducing manual workload for finance teams.

For Canadian businesses, the launch provides a new option to improve liquidity without increasing traditional debt. Access to funds from receivables sales can help companies manage cash flow more effectively, reinvest capital sooner, and adjust balance sheet metrics by removing the financed receivables.

The embedded approach also removes the need for separate onboarding with individual financiers, enabling activation from within the ERP environment. Companies can choose whether customers pay them directly or settle with the financier, with the financing arrangement not disclosed to the customer in cases where that is preferred.

SAP says the solution is designed to support faster decision-making and more efficient cash management. The launch in Canada follows earlier availability in other markets and reflects growing demand for integrated financing tools that operate within core ERP platforms, reducing friction between operational and financial workflows.

 

Finmo adopts Confirmation of Payee in Australia

Finmo has introduced Confirmation of Payee (CoP) to its treasury and payments platform in Australia, becoming one of the first providers to implement the fraud-prevention measure as the national rollout begins. Mandated by Australian Payments Plus and supported by the New Payments Platform, CoP checks the intended recipient’s account name, number and BSB before a payment is processed. The system aims to reduce fraud, prevent misrouted payments and minimise reconciliation delays by verifying details in real time.

Finmo’s integration is delivered through Australian Settlements Limited, a Tier 1 NPP participant, enabling validation at the point of payment initiation. The measure addresses a gap in the payment lifecycle, shifting fraud prevention from a reactive to a proactive approach.

According to Finmo, the adoption supports both regulatory compliance and customer trust, particularly for businesses seeking greater control over payment processes. The company operates across multiple jurisdictions and has partnerships throughout the financial services sector.

CoP is part of a wider push by regulators and industry to strengthen payment security amid rising fraud levels in Australia. The initiative is expected to become a standard feature across banks and payment platforms as the rollout progresses.

 

Stripe adds Pix payments in Brazil via EBANX partnership

Stripe users can now accept Pix payments from Brazilian customers, following an expansion of the payments company’s partnership with EBANX. The move allows businesses on Stripe to process transactions in Brazilian Reais and receive settlements in their own domestic currency.

Pix, developed by the Central Bank of Brazil, has rapidly become the country’s dominant instant payment method. It is used by 93% of Brazilian adults and is projected to overtake credit cards for online purchases by the end of 2025. EBANX data shows merchants offering Pix have seen revenue rise by 16% and their customer base grow by 25% within six months.

For businesses selling into Brazil, the integration could unlock significant market potential. EBANX research, using data from Payments and Commerce Market Intelligence, the World Bank and the Central Bank of Brazil, found that offering local payment methods in cross-border transactions can double consumer reach compared to relying solely on international acquirers. Stripe’s own analysis suggests that businesses providing at least one additional local payment method see, on average, 12% revenue growth and a 7% improvement in conversion rates.

The benefits extend beyond consumer transactions. In the B2B market, Pix already accounts for 51% of the value of online sales between businesses in Brazil, more than double the share of consumer e-commerce. Its speed, security and ability to handle high-value transfers make it an attractive option for corporate payments. Pix acceptance is now available to all businesses using Stripe directly, as well as those transacting via e-commerce platforms built on Stripe’s infrastructure.

 

EquiLend launches AI assistant for securities finance insights

EquiLend has introduced an AI-powered assistant to its Data & Analytics suite, offering faster, chat-based access to securities finance and short interest data. The tool is available via the DataLend interface and the Orbisa app on the Bloomberg Terminal.

Trained exclusively on EquiLend’s research and market insights, the assistant provides context-specific responses to queries, allowing traders, analysts and portfolio managers to explore years of securities lending data and trend analysis. The aim is to give users a quicker way to identify revenue drivers, risk indicators and market shifts.

The chat-based interface enables users to ask targeted questions, such as identifying the top securities lending revenue generators for a specific month or exploring definitions and trends in areas like short squeezes or global fixed income lending.

EquiLend says the launch reflects the changing ways clients consume research and marks an advance in delivering market intelligence. The company positions the assistant as a tool to help users make faster, better-informed decisions while improving accessibility to its data. The AI assistant is available at no extra cost to all DataLend users and Bloomberg clients accessing the Orbisa app.