2025-11-27 07:39

Budget on Wednesday forecast to raise taxes by 26 billion pounds Increase follows 40 billion pound tax hike last year Opposition accuses Reeves of hitting workers to fund welfare Analysts see spending rises now, tax hikes later LONDON, Nov 27 (Reuters) - British finance minister Rachel Reeves fought back on Thursday against criticism that she was raising the tax burden to a post-World War Two high to fund extra welfare spending and returning the Labour Party to its high-tax, high-spend past. A day after announcing plans to raise taxes by 26 billion pounds ($34 billion) on top of 40 billion pounds in her first budget last year, Reeves faced questions about her decision to end restrictions on child benefits for low-income families with more than two children. Sign up here. The change is supported by most Labour lawmakers but finds more limited support among voters, according to opinion polls. "I don't think children should be punished by this pernicious policy any longer, and the cost to society of this is huge," Reeves told LBC Radio. The Resolution Foundation think tank said the "double-whammy" of Reeves' budget measures in 2024 and 2025 represented the biggest back-to-back tax increases by a newly elected government on record. OPPOSITION ATTACKS TAX RISES TO FUND WELFARE The higher welfare spending was attacked by the opposition Conservative Party which accused Reeves of taking money from workers to appease her party's restive lawmakers, opening up fresh political dividing lines. Reeves hit back, saying 60% of families that will benefit had at least one parent in work but could not afford the basics. Her policy change presents a challenge to Reform UK, Nigel Farage's populist party which has held a commanding lead in the opinion polls for months and backed the lifting of the two-child cap. Many of the British newspapers attacked the move, with the Metro newspaper popular with commuters saying "You're Paying!". Reeves denied the charge, pointing instead to a downgrade in Britain's productivity outlook by the country's budget watchdog - based on years of past underperformance - for the range of tax hikes she announced on Wednesday. "I have to operate within the forecasts that I'm presented with," Reeves told the BBC. "Of course I could have made different decisions, but I believe those are the right decisions." The government estimated that scrapping the two-child benefit cap would eventually take 450,000 children out of poverty at a cost of 3 billion pounds a year. REEVES MAKES HISTORY WITH SCALE OF TAX HIKES The Office for Budget Responsibility, which assesses government fiscal plans, said annual welfare spending was expected to be higher by 16 billion pounds at the end of the decade than it would have been under Reeves' previous plans. That included the 7 billion pound cost of a government U-turn in July when a rebellion among Labour lawmakers forced Prime Minister Keir Starmer to drop plans to make it harder for people with health conditions to claim a benefit. The OBR downgrade to productivity forecasts lowered projected tax revenues by 16 billion pounds but this was partly offset by a forecast 10 billion pound tax boost from faster wage growth and related forecast changes. Analysts who pored over the budget overnight highlighted how much of the higher public spending will kick in quickly while the bulk of the tax increases will come in later years. That raised questions about the willingness of Starmer and his government to stick to the tax hikes ahead of an election due in 2029. "It was a borrow-to-spend budget in the short term, and a combination of a tax-and-spend and tax-and-bank-it budget in the medium term," said Helen Miller, director of the Institute for Fiscal Studies, a think-tank. The OBR said on Wednesday that Reeves now has a buffer of 22 billion pounds for meeting her fiscal targets at the end of the decade, more than double her previous amount. Asked about a reduction in growth forecasts for the coming years, Reeves said she intended to take further measures to speed up the economy and the projections did not factor in new trade deals and plans to boost infrastructure investment. "There's plenty more that I'm going to do to grow our economy and make working people better off," she told Times Radio. As well as the higher welfare spending, Reeves' budget plan sought to reassure bond investors that she can meet her borrowing targets. Long-term British government borrowing costs in financial markets rose on Thursday, but reversed only part of their sharp fall on Wednesday. The yield on 30-year gilts was up by about 2 basis points at around 5.23% at 1205 GMT having dropped by 12 basis points after the budget announcement. ($1 = 0.7560 pounds) https://www.reuters.com/world/uk/uks-reeves-rejects-criticism-that-she-raised-taxes-fund-welfare-2025-11-27/

2025-11-27 07:34

NEW DELHI, Nov 27 (Reuters) - Indian company Serentica Renewables plans to raise between $6 billion and $8 billion over the next five years, to help fund acquisitions and build projects as it looks to more than double its clean energy capacity, a top executive said. Serentica, backed by private equity giant KKR (KKR.N) , opens new tab, is looking to invest $10 billion to $11 billion to expand its clean energy portfolio to 17 gigawatts (GW) by 2029/30, its chairman, Pratik Agarwal, said. Sign up here. The company is looking to acquire projects that are already operating or are under construction. It currently has 2 GW of installed solar and wind capacity and 2 GW of capacity due to be commissioned within the next 10 months. The first phase of the planned investment, about $3 billion, is fully funded and the next phase, $2 billion, is partly funded, with the rest under discussion, Agarwal said. The acquisitions are "purely opportunistic and value-based," he said, adding that the company is evaluating projects among the 3 GW to 5 GW of clean energy capacity up for sale in India. Investment in renewables is booming as India is aiming to double non-fossil-based power capacity to 500 GW by 2030. Separately, Resonia, which like Serentica was created with the break-up of Sterlite Power, is planning to invest between $1.5 billion and $2.5 billion annually in India’s fast-growing transmission sector, Agarwal said. Resonia is backed by Singapore's sovereign wealth fund, GIC (GIC.UL) and focuses on setting up power transmission infrastructure. Resonia aims to secure $2 billion to $3 billion worth of projects annually as India is expected to award nearly $14 billion to $16 billion worth of transmission projects over the next few years. The country needs to rapidly expand its transmission infrastructure to be able to transmit power from all the new renewable energy projects. https://www.reuters.com/sustainability/climate-energy/kkr-backed-serentica-may-raise-up-8-bln-india-green-energy-expansion-2025-11-27/

2025-11-27 06:55

Traders see 85% chance of US interest rate cut in December US consumer confidence falls in November Hassett, frontrunner for Fed Chair, says rates should be lower Nov 27 (Reuters) - Gold prices edged lower on Thursday, easing from a near two-week high hit in the previous session, while investors assessed the likelihood of a U.S. interest rate cut in December. Spot gold was down 0.2% at $4,156.89 per ounce, as of 1216 GMT. U.S. gold futures for December delivery slipped 0.2% to $4,154.40 per ounce. Sign up here. "We still expect the consolidation that started with the October setback to continue as the dust of that setback has not fully settled yet," said Julius Baer analyst Carsten Menke. Bullion has fallen 5% since hitting a record high of $4,381.21 on October 20, but has broadly traded above the key 4,000 an ounce level. "The factors we see in favour of the gold market are largely unchanged, including slowing U.S. growth leading to lower interest rates and a weaker U.S. dollar, sustained safe-haven demand and continued strong central bank buying," Menke added. Conflicting signals from the Federal Reserve on the timing and size of U.S. interest rate cuts have accelerated hedging flows into swaptions and derivatives tied to overnight rates. Kevin Hassett, who has emerged as a frontrunner to replace Jerome Powell as Fed Chair, has aligned with President Donald Trump in advocating a rate cut. Meanwhile, comments this week from San Francisco Federal Reserve Bank President Mary Daly and Fed Governor Christopher Waller also bolstered expectations of a cut. Traders are now pricing in an 85% chance of a rate cut next month compared with just 30% a week earlier, CME FedWatch showed. Non-yielding gold tends to perform well in a low-interest-rate environment. U.S. markets will be closed on Thursday for the Thanksgiving holiday and will operate on a shortened schedule on Friday. Elsewhere, spot silver rose 0.1% to $53.39 per ounce, platinum gained 0.9% to $1,602.10, and palladium was steady at $1,422.65. https://www.reuters.com/world/india/gold-steadies-near-two-week-high-investors-weigh-fed-rate-cut-bets-2025-11-27/

2025-11-27 06:54

Stocks edge up, US rate cut expectations grow Yen perks up but intervention focus remains AI spending worries subside for now US markets closed for Thanksgiving holiday, trading more muted LONDON, Nov 27 (Reuters) - Stocks in Europe edged up on Thursday, while the dollar held steady, as investor confidence in a Federal Reserve rate cut next month kept sentiment upbeat, which also helped keep bitcoin above its recent lows. A holiday-shortened week has limited some of the activity across markets. Stocks have kept a largely upbeat tone and currencies are much more sedate as investors shrug off AI bubble worries that had roiled equities earlier in November. Sign up here. With U.S. markets closed for the Thanksgiving holiday, activity was more muted than usual across the major asset classes. 'THE MARKET'S KRYPTONITE' European markets traded modestly higher, with the STOXX 600 index (.STOXX) , opens new tab up 0.2%, led by gains in defence and tech companies that helped offset losses in healthcare stocks. With a Fed rate cut largely seen as a near-certainty next month against the backdrop of an upbeat earnings season, the most likely direction for stocks is going to be upwards, analysts said. "As long as your main engine is going nicely, then a lot of the worries about valuations just get pushed up to the back foot for the time being, until something else comes along," IG chief markets strategist Chris Beauchamp said. He added that the most likely catalyst to derail a rally would come in the form of renewed concern over spending on AI, as has been the case for weeks. "That is the market's kryptonite at the moment," he said. The dollar, meanwhile, held steady against a basket of currencies . Sterling retreated from near four-week highs hit on Wednesday after British finance minister Rachel Reeves' budget helped alleviate some concern about Britain's long-term finances. The pound was unchanged at $1.324, as was the euro at $1.1593. DATA GAP CAN'T TEMPER RATE CUT EXPECTATIONS U.S. macro data is flowing again since the record 43-day government shutdown ended in mid-November, although most of the reports so far have been fairly out of date and offered very little insight into the current state of the economy. This has left investors leaning more heavily on comments from Fed officials for some guidance on where interest rates might go in the coming months. A number of speakers in the last week, including San Francisco Federal Reserve Bank President Mary Daly and Fed Governor Christopher Waller, have boosted expectations for a December rate cut. Traders are now pricing in an 85% chance of a rate cut next month, compared with just 30% a week earlier, CME FedWatch showed. ROUND-THE-CLOCK YEN VIGILANCE In the currency market, the Japanese yen was in the spotlight, having strengthened to 156.375 per dollar from nearly 158 a week ago. Investors are watching for possible intervention from Tokyo after weeks of verbal jawboning from authorities to stem the currency's relentless slide. Prime Minister Sanae Takaichi ruled out on Wednesday the possibility that Japan could face a British-style "Truss moment", or loss of market confidence stemming from her administration's spending plans. Sources told Reuters that the BOJ was preparing markets for a possible rate hike as soon as next month as it may take a more consistent rate hike path to alter the trajectory of the currency. "There's a general feeling that Japanese policymakers will hold off from intervening unless (dollar/yen) were to rise to 158.00-160," David Morrison, senior market analyst at Trade Nation, said. Bitcoin rose 0.7% to $90,800, set to break a four-week losing streak with a nearly 3% gain. Gold eased 0.1% to $4,159 an ounce. https://www.reuters.com/world/china/global-markets-wrapup-1-2025-11-27/

2025-11-27 06:49

TOKYO, Nov 27 (Reuters) - Japan's Kashiwazaki-Kariwa nuclear power plant, the world's biggest, could be restarted as soon as January pending consent from regional authorities, the plant's director was quoted as saying by Jiji news agency on Thursday. A Japanese regional governor last week gave the green light for a partial restart of the plant, as Japan tries to revive its nuclear sector and reduce fossil fuel imports. The Niigata prefecture assembly is set to vote on his decision during its regular session beginning on December 2. Sign up here. If the consent process is completed by the end of the year, it will be possible to restart the plant's Unit No. 6, one of the two biggest at Kashiwazaki-Kariwa, as early as January, Jiji quoted director Takeyuki Inagaki as saying. After the assembly's approval, Tokyo Electric Power Co (9501.T) , opens new tab, the operator, would apply to the Nuclear Regulatory Commission for a pre-use confirmation of the Unit 6. The process usually takes between three weeks to a month, Inagaki said. The restart, if approved by the regional assembly, would be first for TEPCO after a nuclear disaster at its Fukushima Daiichi nuclear power plant in 2011 for which it continues to pay compensation. https://www.reuters.com/sustainability/boards-policy-regulation/japans-kashiwazaki-kariwa-nuclear-plant-could-restart-january-jiji-reports-2025-11-27/

2025-11-27 06:44

Death toll in southern Thailand floods reaches 55 Indonesia battles to reach victims of floods and landslides, 61 dead Malaysia issues tropical storm warnings through to weekend Weather experts say two systems interacted to unleash havoc HAT YAI, Thailand/KUALA PERLIS, Malaysia, Nov 27 (Reuters) - Flood rescue teams in Thailand readied drones to deliver aid and helicopters dropped supplies to people marooned on rooftops on Thursday, as the death toll from its worst floods in years rose and the number killed by a cyclone in Indonesia climbed to 61. Thailand's government said 55 people died during severe floods from a week of heavy rain that has devastated nine southern provinces, while on the Indonesian island of Sumatra, rescue teams battled to reach communities cut off by landslides and floods that wreaked chaos in three provinces. Sign up here. Thailand has pushed relief efforts into high gear after the military brought in an aircraft carrier, 20 helicopters and convoys of trucks to deliver food, medicine and dinghies, and issued a public appeal for boats and jet skis to reach people stranded for days by waters up to 2 metres (7 feet) high. Floodwaters had receded on Thursday in Thailand's worst-hit city of Hat Yai and authorities were optimistic that access could increase and allow basic services to be restored. "Efforts to assist the public are continuing, but the flooding situation will be a long fight," Thai government spokesperson Siripong Angkasakulkiat said. Nearly 3 million people have been affected by floods in southern Thailand, with thousands of people huddling in evacuation centres, while in neighbouring Malaysia, similar flooding in seven states killed two people and forced more than 34,000 into shelters. TROPICAL CYCLONE DEVASTATES INDONESIAN ISLAND On Sumatra, an Indonesian island of 60 million people, a tropical cyclone unleashed deadly floods and landslides, with at least 100 people missing and power outages and damaged infrastructure hampering rescue efforts. Kompas TV showed images of earth sliding down a hillside to pile up in front of homes, while gushing waters higher than 1 metre (3.5 feet) swept along debris and the branches of trees. People were carried out of their homes through fast-flowing water and helped onto orange rubber boats in the teeming rain, video from the search and rescue agency showed. Verified images from West Sumatra showed rescue teams carrying bodies through deep mud and cars displaced and on top of each other after being carried away by a tide of floodwater. Meteorologists say current extremes of weather in Southeast Asia could stem from the interaction of two active systems, Typhoon Koto in the Philippines and the unusual formation of Cyclone Senyar in the Malacca Strait. Global warming can bring more frequent extreme events as higher sea surface temperatures supercharge tropical storms. The most recent floods follow a series of deadly typhoons and heavy monsoon rains that have lashed the Philippines and Vietnam and swelled floods elsewhere. ARMY REINFORCEMENTS ARRIVE Thailand's army engineering corps with specialist vehicles and 2,000 members of the civil defence corps arrived on Thursday in Hat Yai, the fifth-largest city, where helicopters were delivering food to hospitals and victims still stuck on rooftops. In Hat Yai, thousands have been stranded by the heaviest rainfall in 15 years, with 335 mm (13 inches) recorded on Friday, the city's highest in a single day for 300 years. Aerial footage under grey skies over Hat Yai showed miles of roads engulfed by brown water, with heavy-duty trucks crawling along wide thoroughfares past abandoned cars and lorries, as groups of people waded slowly through knee-deep water. "I'm walking back to my grandmother because she hadn’t had food for two or three days. I heard she finally received some food, but I’m still worried," said Natawat Chermmontri, 18, moments before diving into the water to swim across a road. TROPICAL STORM WARNING Waters were receding in Malaysia, where authorities issued new warnings on Thursday of a tropical storm until the weekend that could bring strong winds, rough seas and heavy, continuous rain affecting seven states. Container lorries were used to bring some Malaysians back over the border from Thailand, the foreign minister said, as smaller vehicles were unable to traverse the floodwaters. Authorities said about 500 nationals were still stranded in Hat Yai, a city popular with Malaysian tourists. At an evacuation centre in the state of Perlis, Gon Qasim said rising waters trapped her in her home in the middle of a paddy field. "The water was like the ocean," the 73-year-old said. In Thailand, police said they were assisting 1,000 stranded foreigners, moving them to shelters at a university. At an indoor basketball arena that was turned into an evacuation centre, a tearful Kritchawat Sothiananthakul, 70, described the inexorable rise of waters in his Hat Yai home, as he waited with his dog to be rescued. "We had to climb down from the roof, get into the boat," he said. "I needed to carry it and then get onto a truck... We had to leave everything because everything was submerged." https://www.reuters.com/business/environment/thailand-eyes-drones-boost-flood-relief-efforts-deaths-climb-indonesia-2025-11-27/