2025-05-02 05:29

May 2 (Reuters) - Australians will vote on Saturday in a close-run national election marked by concerns over the cost of living and housing affordability, as well as trade tensions triggered by U.S. President Donald Trump's tariffs. Here's how Prime Minister Anthony Albanese's centre-left Labor party and the conservative Liberal-National coalition, led by Peter Dutton, compare on key policies: Sign up here. HOUSING Labor: Would let all first-time home buyers enter the property market with a 5% down payment and has pledged to spend A$10 billion ($6.40 billion) to build up to 100,000 new homes. Liberal-Nationals: Would allow first-time home buyers to access up to A$50,000 from their government-mandated retirement savings for down payments. Mortgage interest payments would be made tax deductible. It has also pledged A$5 billion to fund housing infrastructure. HEALTH Labor: Has pledged A$8.5 billion for an extra 18 million subsidised general practitioner visits each year as part of strengthening Medicare, the universal healthcare system, along with A$1 billion for more free-of-charge public mental health services. Would open an additional 50 free urgent care clinics to ease pressure on hospitals. Liberal-Nationals: Has matched Labor's A$8.5 billion funding boost to Medicare, pledged A$400 million for youth mental health services, and plans to double Medicare-subsidised psychology sessions to 20 from 10. ECONOMY Labor: Would give taxpayers a one-off, instant A$1,000 deduction for individual work-related expenses and cut student debt by 20%. It also passed legislation to cut the lowest marginal tax rate before calling the election. Liberal-Nationals: Has vowed to undo Labor's tax cuts and instead introduce an offset that would let taxpayers earning up to A$144,000 receive up to A$1,200 in tax relief. Would lower fuel costs by A$0.25 per litre (0.26 gallon) for 12 months by reducing government duties. Wants to shrink the public service by 41,000 jobs through a hiring freeze and natural attrition, which it estimates would save A$7 billion each year. ENERGY Labor: Committed A$2.3 billion to subsidise household batteries to store solar power and pledged to extend rebates on energy bills for households and small businesses. Announced an A$2 billion increase in clean energy technology funding through its green bank to achieve a majority-renewables grid, which would be backed up by power from gas, batteries and hydropower. Liberal-Nationals: Aims to bring down gas and electricity costs through a reservation scheme forcing liquefied natural gas (LNG) exporters on Australia's east coast to sell a portion of their uncontracted gas into the domestic market. Pledges to cut "red and green tape" for new gas projects and fast-track a decision on extending the life of Woodside's (WDS.AX) , opens new tab North West Shelf LNG plant. Long term, wants to build a nuclear industry with seven plants across the country. Nuclear power is currently banned in Australia. DEFENCE Labor: Has not pledged any new defence funding, pointing to an existing commitment to an A$50 billion increase over the next decade that would boost spending to 2.3% of gross domestic product from 2%. Liberal-Nationals: Would spend A$21 billion more than Labor over five years to reach 2.5% of GDP within five years and 3% within a decade. Has pledged A$3 billion to acquire extra joint strike fighter jets. MIGRATION Labor: Has not announced any election pledges specific to migration. Liberal-Nationals: Promises to cut the permanent migration programme, now at 185,000 per year, to 140,000 for two years, then 150,000 in year three and 160,000 in year four. Also would cut net migration by 100,000 below Labor's yearly levels and reduce the number of international students commencing at public universities by 30,000 per year. ($1 = 1.5635 Australian dollars) https://www.reuters.com/world/asia-pacific/policies-australias-political-parties-glance-2025-05-02/

2025-05-02 05:28

MUMBAI, May 2 (Reuters) - The Indian rupee extended its rally on Friday, wiping out all losses since Donald Trump won the U.S. presidential elections in November 2024, with traders citing strong dollar inflows and short-covering amid rising hopes of a U.S.-India trade deal. The rupee rose to a peak of 83.78 in early trading, up 0.8% on the day. The currency was at 83.93 per U.S. dollar at 10:35 a.m. IST. Sign up here. The Indian currency, which has risen nearly 2% so far this week, is trading above levels seen on November 6, when Trump's victory sparked a wave of dollar strength. The rupee fell to an all-time low of 87.95 in February amid uncertainty over Trump's tariff policies, but recovered sharply over March and April on the back of portfolio inflows and hopes that India will be one of the first to sign a trade deal with the U.S. There has been "short covering on reports of how a trade deal will route manufacturing to India mostly," a Singapore-based trader at a hedge fund said. Exporters' dollar sales and a scaling back of bearish wagers on the rupee have also helped. In fact, investors have ramped up bullish wagers on the rupee, alongside most of its regional peers, per a Reuters poll. "We remain positive that India will emerge as one of the key winners under Trump 2.0, as a beneficiary of the next round of supply-chain shifts," analysts at Nomura said in a note. Overseas investors snapped a three-month selling streak of Indian equities in April, helping hoist the rupee. Foreign institutional investors have bought Indian shares for 11 straight sessions, the longest run of inflows in two years. The lack of aggressive dollar buying by India's central bank has also aided, traders said. But the Reserve Bank of India had defended these levels sternly last year and there is a "strong chance" they start to buy dollars now, the trader at the hedge fund said. On the day, the dollar index was down 0.1% at 100 while Asian currencies were mostly stronger with the offshore Chinese yuan up 0.3% amid fresh hopes of U.S-China trade talks. https://www.reuters.com/world/india/rupee-wipes-out-all-losses-since-trump-election-win-shorts-bail-2025-05-02/

2025-05-02 04:47

MUMBAI, May 2 (Reuters) - The Indian rupee rose sharply in early trading on Friday to climb past 84 per U.S. dollar for the first time since October 2024, driven by heavy dollar sales from foreign banks and strength in regional currencies. The rupee climbed to a peak of 83.83, up 0.7% from its close at 84.4875 in the previous session. The currency is now up nearly 2% on the week. Sign up here. A pick up in dollar inflows into Indian equities, optimism about a U.S. trade deal and a liquidation of short bets against the currency have all been tail winds for the rupee over recent sessions, traders said. Foreign institutional investors have bought Indian shares for 11 straight sessions, the longest streak of inflows in two years The rupee's sharp gains over recent sessions has also prompted analysts to adjust their outlooks on the local unit with MUFG expecting the currency to end the year at 84, up from 87 per its earlier forecast. "We now forecast INR to outperform Asian FX with our global team’s call for more US Dollar weakness together with better than anticipated tariff outcomes for India in Trump 2.0," MUFG said in a Friday note. On the day, foreign banks were spotted offering dollars, likely on behalf of custodial clients, while bids were relatively scant, helping the rupee climb over the 84 figure, a trader at a state-run bank said. https://www.reuters.com/world/india/rupee-rally-unabated-analysts-abandon-bearish-outlook-2025-05-02/

2025-05-02 04:46

TOKYO, May 2 (Reuters) - Japanese trading house Itochu (8001.T) , opens new tab reported a record high net profit of 880.3 billion yen ($6 billion) for the year ended March, marking a 10% increase from the previous year, bolstered by its textile, food, and FamilyMart convenience store units. A LSEG poll of analysts had expected Itochu to post 887 billion yen in net profit. The company has forecast profit for the year ending next March at 900 billion yen, maintaining a total shareholder payout ratio of 50%, it said. Sign up here. Warren Buffett's Berkshire Hathaway (BRKa.N) , opens new tab, a large minority shareholder in Itochu, has been expanding its stake in the company as well as in other Japanese trading houses including Marubeni (8002.T) , opens new tab and Sumitomo Corp (8053.T) , opens new tab. ($1 = 145.2400 yen) https://www.reuters.com/markets/asia/japans-itochu-annual-profit-rises-10-slightly-misses-forecasts-2025-05-02/

2025-05-02 04:38

Japan puts 'all cards on table' in trade talks with US Japan's huge US Treasury holdings among such cards, Kato says Whether to actually use that card is different question, he says Remarks highlight Japan, China leverage as big U.S. creditors TOKYO, May 2 (Reuters) - Japan could use its $1 trillion-plus holdings of U.S. Treasuries as a card in trade talks with Washington, its finance minister said on Friday, raising explicitly for the first time its leverage as a massive creditor to the United States. While Finance Minister Katsunobu Kato did not threaten to sell holdings, his remarks touch on a critical concern global investors have about what Japan and China, the two largest owners of U.S. government debt, might do in seeking tariff concessions from the Trump administration. Sign up here. The Treasury market saw a huge global sell-off last month after U.S. President Donald Trump's decision on April 2 to slap sweeping tariffs on trading partners, including key strategic allies such as Japan. Kato said in a television interview the primary purpose of Japan's U.S. Treasury holdings - the largest in the world - is to ensure it has sufficient liquidity to conduct yen intervention when necessary. "But we obviously need to put all cards on the table in negotiations. It could be among such cards," he said when asked whether Japan, in trade talks with the U.S., could reassure Washington it will not sell its Treasury holdings in the market. "Whether we actually use that card, however, is a different question," Kato added. The U.S. Treasury Department did not immediately respond to Reuters' request for comment outside of office hours. Kato's remarks contrast with those he made last month, when he ruled out using Japan's U.S. Treasury holdings in trade negotiations. On Friday, Kato declined to comment on whether Tokyo's U.S. bond holdings came up in his bilateral meeting with Treasury Secretary Scott Bessent last week. However, he said the huge market sell-off in Treasuries in April likely affected Washington's approach in talks with Japan. Japan's and China's presence in the Treasury market makes them a huge point of attention whenever U.S. yields spike, although little is known about their trading activity. While Japan, as a close U.S. ally, is seen as less likely to use its Treasury holdings as a bargaining tool, some analysts speculate that China may liquidate its holdings as a "nuclear" option as trade tensions with the U.S. escalate. So far, there are few signs of such a sell-off. Foreign holdings of U.S. Treasuries rose 3.4% in February, data from the Treasury Department showed last month, with the two largest owners, Japan and China, building up their U.S. debt positions. But even hints of their huge market presence could be a key weapon for Japan, which otherwise has little leverage due to its economy's huge reliance on the U.S. car market. "Playing the card early, while the U.S. bond market is in the minds of the administration after recent weeks, is a smart move," said Martin Whetton, head of financial markets strategy at Westpac in Sydney. "They don't have to do anything. But they can put themselves in a solid position to negotiate. It is, after all, the art of the deal." Japan's top trade negotiator, Ryosei Akazawa, said he deepened talks on trade, non-tariff measures and economic security cooperation in his second round of talks with Bessent in Washington on Thursday. He also said the two sides hoped to hold their next meeting in mid-May. USE ALL TOOLS The U.S. Treasury sell-off in April was among factors that led Trump to announce a 90-day pause on his "reciprocal" tariff plan, with Bessent likely playing a key role, according to sources close to the White House. Aside from the tariffs, Japan has also faced criticism from Trump that it was intentionally weakening the yen to give its exports a trade advantage - an accusation Tokyo denies. Kato said his meeting with Bessent last week did not discuss any desirable exchange rate or a possible framework to control currency moves. Analysts say Japan's huge Treasury holdings can also be used as a bargaining tool in any differences Washington has with Tokyo over currencies. "(It) should be a card if not an ace card for the negotiation," said Naka Matsuzawa, chief macro strategist at Nomura Securities in Tokyo. "It would work not only to flatten the (bond yield) curve in the two countries but also avoid other outrageous requests such as artificial yen appreciation." But there are at the same time limits to such threats as unloading Treasuries would hurt Japan and China by disrupting markets and causing huge losses on their remaining holdings. Given the hit Japan and China themselves would suffer from selling their U.S. Treasury holdings, the idea was an "absolute non-issue in the past," said Nathan Sheets, former U.S. undersecretary for international affairs who is currently global chief economist at Citi Research. "But countries have to use all the tools they have," he said. "The fact that we need to think about something like that shows the world we're in." https://www.reuters.com/markets/asia/japans-us-treasury-holdings-among-tools-trade-talks-finance-minister-kato-says-2025-05-01/

2025-05-02 04:32

A look at the day ahead in European and global markets from Ankur Banerjee A possible de-escalation of trade tensions between Beijing and Washington provided a fillip for markets on Friday, boosting risk sentiment and lifting stocks globally just as earnings from Apple delivered a reminder of the trade war's true cost. Sign up here. China's Commerce Ministry said that Beijing was "evaluating" an offer from Washington to hold talks over U.S. President Donald Trump's 145% tariffs and that Beijing's door was open for discussions. At the same time, however, China said Washington needed to show "sincerity" in negotiations and should be prepared to cancel its unilateral tariffs. The prospect of trade talks helped to allay investor worries over the tariffs, which have roiled global markets and sparked fears of an economic downturn. Data for the world's two biggest economies has started to show signs of weakness. S&P 500 and Nasdaq futures surged, while European bourses were set for a strong open ahead of a flurry of corporate earnings, headlined by oil major Shell (SHEL.L) , opens new tab and German chemicals group BASF (BASFn.DE) , opens new tab. The earnings season so far has highlighted the cost of erratic U.S. trade policy and its back-and-forth tariffs, which prompted many companies across the globe to lower their profit forecasts or withdraw them altogether. Apple (AAPL.O) , opens new tab on Thursday cut its share buyback programme by $10 billion and warned that tariffs could add about $900 million in costs this quarter, dimming some of the optimism that followed strong results from Microsoft and Meta Platform. Apple CEO Tim Cook also outlined how the iPhone maker has started to stockpile products so that the majority of its devices sold in the U.S. this quarter will not come from China. And while markets seem to be taking comfort from Friday's comments out of Beijing, the reality is that there still has not been a resolution in any of the trade talks that the U.S. has held so far with its allies. That was particularly evident when Japan's finance minister said on Friday the country could use its $1 trillion-plus holdings of U.S. Treasuries as a card in trade talks with Washington, raising explicitly for the first time its leverage as a massive creditor of the United States. Key developments that could influence markets on Friday: Economic events: April flash inflation data for euro zone, April manufacturing PMI data for France and Germany Earnings: ING, BASF, NatWest, Shell Trying to keep up with the latest tariff news? Our new daily news digest offers a rundown of the top market-moving headlines impacting global trade. Sign up for Tariff Watch here. https://www.reuters.com/markets/europe/global-markets-view-europe-2025-05-02/