US manufacturers ramp up purchases but Canada and Mexico see sharp declines

Overall supply chain capacity became more underutilised globally in February, data from the GEP Global Supply Chain Volatility Index has shown. The indicator, which tracks demand conditions, shortages, transportation costs, inventories, and backlogs based on a monthly survey of 27,000 businesses, fell to -0.45 las month from -0.21 in January, its lowest level since July 2023. However, regional data reveals significant geographical differences.

In the US, manufacturers’ demand for raw materials and components saw a notable uptick in February, reflecting a mix of preparations for orders and efforts to avoid higher costs from additional tariffs. US factories also reported accelerating sales growth as their customers acted to front-run price and supply challenges arising from tariffs, driving up procurement. Efforts to mitigate tariffs also propelled stockpiling by US manufacturers in February.

In stark contrast, Mexican and Canadian manufacturers harshly reduced their purchases in response to a rapid reduction in exports as US companies refrained from placing orders due to the threat of tariffs and trade policy uncertainty.

In Europe, manufacturers are making inventories cutbacks. The continent’s supply chains continue to be underutilised as the industrial sector remains sluggish. That said, there does appear to be some early indication of recovery as the downturn in factory demand for inputs cooled to its weakest in two-and-a-half years.

Asia supply chains continue to be at full capacity in February, as was the case at the start of the year, making them the most active globally. Factories in parts of the region such as China, Taiwan and India reported strong export growth.

“With tariffs driving uncertainty, US manufacturers are racing to secure materials, while Canadian and Mexican suppliers are feeling the squeeze from weaker export demand,” said Krish Vengat N., GEP’s vice president of consulting. “In contrast, Asia’s supply chains are operating at full capacity, fuelled by strong export growth. Companies must remain agile - diversifying supply sources and optimising inventory strategies to navigate this ongoing volatility.”

 

US equities see continued inflows as UK investors switch again 

After running for cover during January’s financial market turbulence, UK investors were more positive in February, according to the latest Fund Flow Index from Calastone. They added a net £1.09bn to their equity-fund holdings during the month, having been net sellers in January. Rising bond markets also prompted the largest inflows to fixed income funds since June 2023, making February the third best month on Calastone’s 10-year record for the sector.

Optimism on equities was not indiscriminate, however. UK-focused funds endured another bad month, shedding a net £1.22bn, the sixth worst month on record. The outflow came despite the UK index outperforming global markets in February, ending the month up by 1.6%, compared to 0% for the wider world. Japan, Asia-Pacific, Emerging Markets, European and specialist sector funds all saw outflows too, though these (except Asia-Pacific) were at relatively low levels. The big winners, once again, were Global and North American funds, which garnered net inflows of £2.09bn and £770m, respectively. Given the 60% weighting of US equities in typical global funds, inflows to this sector are also a vote for the US stock market.

This follows a longer-term trend. Since 2020, these two sectors alone have enjoyed inflows of £100.88bn, compared to £32.6bn of outflows across all other equity sectors (thanks to selling of UK equities). It is a consistent pattern. Since the beginning of 2024, Global and North America alone have seen net inflows of £35.2bn, while UK-focused funds have shed £11.85bn. Most other fund sectors have also seen some inflows (except Asia-Pacific and Greater China), but at a fraction of the pace of Global and North American ones – collectively just £4.29bn since January 2024. Given that fund flows are structurally positive as investors save for the long term, this pattern implies there is an outright switch underway from the UK to global and US funds.

Fixed income funds had an exceptionally strong month – at £1.14bn, the third best for inflows on record. Investors bought avidly to lock into the post-GFC highs yields reached in January when markets convulsed over reignited fears of inflation caused by the outbreak of trade wars. Within this overall total, high-yield bond funds had their best month on record, with £305m of inflows, while inflows to sovereign bonds of £201m were almost double the monthly average for the last year.

Money market funds saw inflows decline to their lowest level since June 2024, if viewed beyond the distortions caused by Chancellor Rachel Reeves’ autumn budget. The £140m inflow is still well above pre-Covid times when the era of low interest rates deterred investors from cash funds but money market inflows are on a declining trend as central banks cut policy interest rates.

 

8 in 10 US businesses plan to improve payments processes in 2025

Nearly all (95%) business decision makers in the US say easy, streamlined, and secure payments create happy customers, while 91% say that this also helps to drive business growth. The new Amex Trendex: B2B Payments Edition, a survey of 1,000 US business decision makers also found that, in 2025, of those planning to make changes to their payments process, driving business growth was the leading response (43%).

As businesses look to drive growth in 2025 amid a dynamic environment, relationships between buyers and suppliers are extremely important. The new Amex Trendex: B2B Payments Edition, a survey of 1,000 US business decision-makers, reveals that there is an opportunity to enhance the payments experience on both sides of the transaction, which can, in turn, enhance relationships and help businesses grow. 

A quarter (26%) of business decision-makers surveyed cite late or slow payments as a common reason they have stopped working with a buyer or supplier, and four in five say that a single fraud incident relating to payments could significantly impact trust in their relationships with buyers (82%) and suppliers (82%).

Automation can save businesses time and money when compared to manual processing; it also supports on-time payments and streamlines processes, helping them run more efficiently and securely. These are attractive benefits, as 29% of business decision makers say they would sleep better at night if they did not have to worry about their payments being on time and accurate, and nearly one third admit they are spending too much time managing payments.

While business decision makers do acknowledge the benefits of automation - including faster payments and reduced errors, many businesses have yet to fully automate their payments processes. Only 17% of businesses surveyed have fully automated their payments processes, and a similar number (15%) have not automated any payments processes at all.

For those that have not fully automated payments processes, among the leading concerns are: cost (45%), not believing it would benefit their business (28%) and security (26%).

 

Business confidence stays strong despite tariff uncertainty

Some 85% of suppliers are optimistic about prospects in 2025, with 56% being “very optimistic”, despite uncertainty over rising tariffs and protectionism, according to Taulia’s annual Supplier Sentiment Survey which was conducted after the US election. This optimism is a significant jump from the cautious sentiment seen over the past few years, rising from 2022 when just 18% of suppliers were “very optimistic” about the year ahead.

Optimism has ebbed and flowed across countries and continents. When asked to rate optimism on a scale of 1 to 5, in Argentina, optimism increased from 4.06 to 4.22 this year compared to last. This may be linked to new policies aimed at tackling high inflation in the country. In addition to this, Spain’s optimism outlook increased from 3.89 to 4.11, likely due to its strong economic growth. However, not everyone is feeling quite so strongly.

In Western Europe, responses were more temperate. Optimism in France fell most dramatically (4.05 to 3.94) and Germany (3.84 to 3.74), potentially due to a reflection of the continued geopolitical economic upheaval across the continent.

It is unsurprising, against this current economic backdrop, that early payment options are becoming increasingly popular, with over three fifths (63%) of suppliers expressing interest – up significantly from 56% in 2019. This trend highlights the growing demand for liquidity and cash flow stability, especially as only 42% of buyers are paying on time, a steep decline from 54% in 2019.

For suppliers, the top reasons for utilising early payment options is to access liquidity and bridging cash flow gaps (both 24%). Improving payment predictability is also a reason for a fifth (20%), as well as strengthening business relationships (14%).

Despite ongoing uncertainty, businesses remain optimistic about the future. However, they also recognise the need to stay agile, adapting their financial strategies to navigate shifting market dynamics. Many businesses are turning to diverse external capital solutions, with over a quarter (26%) using credit cards, followed by lines of credit (23%), early payment on invoices (22%) and debt factoring (21%).

When asked about what is on their mind for the year ahead, more than half (52%) of businesses said growth, followed by artificial intelligence (28%) and inflation (27%).

The role of artificial intelligence (AI) in finance is rapidly gaining traction, with 92% of finance leaders anticipating the use of AI-generated insights within the next 12 months. Additionally, nearly half (45%) of finance functions plan to recruit AI specialists, underscoring the strategic importance of digital transformation in driving business resilience.

 

Singapore and Vietnam enhance cooperation in financial innovation

The Monetary Authority of Singapore (MAS) and the State Bank of Vietnam (SBV) have agreed to enhance their existing Memorandum of Understanding (MOU) to further cooperate on financial innovation. 

The upgraded MOU on financial innovation will facilitate an expanded scope of cooperation on joint digital innovation projects, promote payment connectivity between Singapore and Vietnam, and support FinTech operations in both markets. 

“The close cooperation in the banking and financial sector between Vietnam and Singapore over the years has demonstrated its positive role in supporting bilateral trade and investment relations, leading to significant achievements,” said Nguyen Thi Hong, Governor of SBV. “Singapore serves as a great inspiration for financial innovation in the region and globally. Today's MOU strengthens the foundation for both sides to further promote cooperation, enhance the exchange of information and experiences, which we believe will be highly constructive to the development of the regulatory framework for the fintech sector in Vietnam.”

 

Deutsche Bank adds Swiss franc to clearing services for FIs

Deutsche Bank’s cross-border payments solutions are being expanded to include Swiss franc (CHF) clearing, allowing financial institution (FI) clients to settle transactions in one of the world's most widely used currencies.

The global cross-border payments market – where B2B transactions account for 97% – is expected to grow at a CAGR of 7.43%, reaching US$303.34bn by 2030. As cross-border activity continues to expand and end customers are asking for faster, cheaper and more transparent payments, financial institutions are increasingly looking for partners that can provide comprehensive clearing services.

To meet client needs in this evolving landscape, Deutsche Bank is enhancing its suite of correspondent banking solutions. Following on from the launch of its dbX platform in October 2024, Deutsche Bank is now further refining its capabilities by adding CHF clearing.

By adding CHF to its clearing services, Deutsche Bank is providing FI clients with greater flexibility, efficiency, and access to one of the most stable and widely used currencies in the world.

 

GTreasury ushers in “new era” with adaptable treasury solutions

GTreasury has announced its uniquely adaptable approach to treasury management software. The firm’s vision is to empower CFOs and treasurers to adapt, evolve, and conquer both today’s challenges and tomorrow's opportunities with solutions that can be used both independently and in concert through shared data and workflows.

CFOs and treasurers often face a daunting choice between costly, monolithic systems that take months or years to implement or limited point solutions that constrain future growth. Because each organisation faces unique treasury and finance complexities, GTreasury supports every stage of treasury maturity - from cash visibility and forecasting to risk, debt, investments, payments, and netting. 

Through bank and ERP connectivity and agent-driven data insights, the vendor says it creates an orchestrated data environment that enables select solution implementations to go live as soon as 90 days, not months or years. Organisations can start with the solutions they need today and seamlessly adapt as their needs evolve.

"Businesses today need solutions that deliver both immediate impact and flexibility to support future growth - without compromise,” said Jason Badree, Chief Customer Officer, GTreasury. “Our adaptable platform connects to any bank, any ERP, anytime and provides interoperable workflows - ensuring customers can realise immediate value while maintaining the flexibility to grow with their business.”

 

ETR Digital and Calculum announce strategic partnership to unlock working capital

ETR Digital, a London-based technology firm specialising in unlocking working capital, and Calculum, a US-based provider of AI-powered financial supply chain analytics, have announced a strategic partnership to assist corporates in releasing trapped working capital and improving cash conversion cycles through payment terms analytics and the adoption of digital negotiable instruments (DNIs).

Combining the power of Calculum’s AI supply chain analytics platform with ETR Digital’s DNI technology, corporates can now evaluate and act on unlocking working capital in a simple, easy to consume way.

Calculum’s ADA Platform allows organisations to compare themselves with their competitors. With the web-based platform leveraging AI, companies can analyse all their suppliers’ payment terms, cost of debt, sustainability, metrics, and compile all the necessary arguments to negotiate more favourable terms.

ETR Digital’s technology generates referenceable, transferable and enforceable DNIs, which enable corporates to improve their cash conversion cycles by releasing trapped working capital while embedding supply chain resilience.

Digital bills of exchange and promissory notes can be used by both corporates and financial institutions for growth and value creation and have gained attention as a solution to sweep aside long-standing inefficiencies in trade and supply chain finance.

“We are delighted to partner with Calculum,” said Dominic Broom, CEO of ETRDigital. “The powerful combination of their AI technology and our DNI application represents, for the first time ever, a transformational offering for corporate treasurers globally.”

 

Bank of Ireland pivots to Surecomp to fuel trade finance innovation 

Surecomp has announced that Bank of Ireland has chosen to deploy its DOKA-NG platform as a SaaS solution to streamline back-office trade finance operational efficiency. This collaboration reflects an ongoing strategic commitment by the bank to embrace innovation and deliver a superior customer experience.

In its pursuit of operational excellence and continuous innovation, Bank of Ireland selected Surecomp’s trade finance-as-a-service to access technology on demand, with the benefits of rapid deployment, automatic updates and little to no reliance on IT resources. The cloud-based platform will help Bank of Ireland efficiently manage its internal trade finance processes with agility and scalability, driving greater efficiency, transparency and customer responsiveness.

“Customer-centricity sits firmly at the centre of our decision to pivot to a SaaS trade finance solution,” said Owen Neary, Head of Trade Finance at Bank of Ireland. “By working with Surecomp and leveraging its innovative technology as a dedicated digital trade finance provider, we are well-positioned to lead the way in both customer experience and trade finance efficiency. We look forward to unlocking new levels of operational agility but ultimately to driving greater value to our customers.”

 

Standard Chartered issues first social bond

Standard Chartered has issued its first-ever social bond, which will support the sustainable development of low-income countries across the bank’s emerging market footprint.

The €1bn 8-year non-call 7-year offering will primarily facilitate lending to small and medium-sized enterprises (SMEs), ensuring access to finance, helping create jobs and empowering and nurturing women-owned SMEs. Proceeds will also finance access to essential services including healthcare and education, and will facilitate investment into affordable basic infrastructure and food security, in line with the social activities set out in the bank’s Sustainability Bond Framework.

Today, around $4.2 trillion in annual investment is needed across emerging markets to facilitate sustainable development, build resilience across businesses and communities, and facilitate enduring growth. Bridging this gap requires the mobilisation of private sector capital into these markets, channelling finance towards outcomes that are critical to inclusive, long-term prosperity.

The proceeds raised from this inaugural social issuance will reference Standard Chartered’s Sustainable Finance asset pool, which includes $5.5bn in social assets – with 99% of these located in Asia, Africa and the Middle East. This ensures that capital raised through this issuance will support markets where the demand for finance is acute. The top five countries where Standard Chartered’s social assets are located include India (57%), Malaysia (10%), Bangladesh (6%), Mainland China (5%), and Nepal (4%).

 

M-DAQ unveils FX risk solution

M-DAQ Global, a fintech group specialising in FX and cross-border payment solutions has announced the launch of 4XPro through its subsidiary, M-DAQ Market Solutions. The solution aims to equip businesses with customisable forward contracts, helping them to manage currency risks more effectively. This ability can support business performance, providing more accurate cash flow forecasting and a clearer path to sustained growth.

As businesses expand their operations internationally, they face growing exposure to currency fluctuations, from suppliers and vendors to customers. Currency volatility directly impacts cash flow, which can disrupt a company’s financial stability, particularly for those operating across multiple currencies. In this environment, effective FX risk management tools have become indispensable. However, an upcoming report by M-DAQ Global reveals that more than 70% of businesses do not use hedging strategies to manage FX risk.

“Maintaining a stable and predictable cash flow is critical for any company, and currency volatility can introduce significant, often unpredictable costs,” noted Richard Koh, Founder and Group CEO of M-DAQ Global. “4XPro provides an effective solution to this challenge. For example, a subscription-based SaaS company that bills customers monthly in foreign currencies can lock in a forward exchange rate, ensuring predictable revenue streams and simplifying financial planning and budgeting.”

4XPro lets businesses tailor forward contract terms to their specific needs, including broken dates and standard tenors up to one year across a range of currency pairs, supported by competitive pricing. This level of control enables businesses to manage risk according to their unique financial goals and risk tolerance.

 

Boost and TransferMate look to enhance cross-border payment capabilities

Boost Payment Solutions has announced a partnership with TransferMate that is designed to address the growing demand for cross-border payments. The collaboration combines Boost’s cross border payment solution for enterprise-level business, Boost 100XB, with TransferMate’s globally regulated payments infrastructure to help increase industry-wide commercial card usage and adoption.

According to FXC Intelligence’s forecast, the global B2B cross-border payments market will total $50 trillion by 2032, driven by growth across large enterprises and SMBs, as well as increased digitisation. To address the growing market need, Boost 100XB was developed to simplify and streamline buyers’ international transactions, enabling financial institutions and program managers who issue commercial cards on US-based BINs to expand the reach of those programs into cross-border payments.

Boost 100XB is a feature of Boost 100, which uses a two-step payment process whereby the transaction is initiated on the card rails and settled via a variety of payment modalities and currencies that best meet the needs of the supplier. Boost 100 was specifically designed to address this need by helping enterprise buyers pay 100% of their suppliers by card regardless of how each of their suppliers prefers to get paid. Boost 100XB, along with TransferMate’s focus on regulations, compliance and security across its extensive global payments network, should enable buyers and suppliers to increase cost efficiency and speed for sending and receiving secure digital cross-border payments.