2025-06-18 03:56

CANBERRA/SYDNEY, June 18 (Reuters) - Australia's Labor government, elected for a second term last month, will consider tax reforms to boost productivity and build economic resilience as global volatility spikes, Treasurer Jim Chalmers said on Wednesday. In a speech at the National Press Club, Chalmers said the government welcomes ideas at an upcoming economic roundtable in August, but they should be preferably budget neutral, as policymakers grapple with rising spending pressures in the years to come. Sign up here. "Our budget is stronger, but not yet sustainable enough. Our economy is growing, but not productive enough. It's resilient, but not resilient enough – in the face of all this global economic volatility," Chalmers said. "No sensible progress can be made on productivity, resilience or budget sustainability without proper consideration of more tax reform." Australia's economy barely grew in the first quarter as consumers kept a tight hold on their wallets and government spending, the engine of activity last year, sputtered to a standstill. U.S. tariffs and geopolitical conflicts have since darkened the outlook for small and open economies like Australia's. The Reserve Bank of Australia has already cut interest rates twice since February and investors are betting on three more cuts by the end of the year to take rates from 3.85% to 3.1%. However, there are signs that foreign investors have been turning to Australia's domestically focused stocks, choosing an often overlooked market as a trade war hideout. When asked about a U.S. demand for Australia to boost defence spending to 3.5% of gross domestic product, Chalmers said Australia was already spending more on defence and the government was focused on repairing the budget. "I think over the life of the next 10 years... it may be that governments make different decisions about defence spending but let's not dismiss the very substantial increase that we are already making," he said. https://www.reuters.com/world/asia-pacific/australias-re-elected-government-focused-economic-resilience-treasurer-says-2025-06-17/

2025-06-18 03:35

SHANGHAI, June 18 (Reuters) - China's foreign exchange regulator on Wednesday vowed to keep the yuan exchange rate basically stable and fend off external shocks and risks. Speaking at the Lujiazui Forum in Shanghai, Zhu Hexin, head of the State Administration of Foreign Exchange, said China's ability to counter forex market volatility has improved. Sign up here. China will set up a forex management policy evaluation mechanism, and improve the rules for qualified foreign investors, he said. https://www.reuters.com/markets/currencies/chinas-forex-regulator-vows-fend-off-external-shocks-2025-06-18/

2025-06-18 03:05

MUMBAI, June 18 (Reuters) - The Indian rupee is set to open weaker on Wednesday, nearing a two-month low, weighed down by rising crude oil prices amid escalating Iran-Israel tensions and concerns over outflows. The 1-month non-deliverable forward indicated a open in the 86.38-86.42 range, versus 86.24 in the previous session. The unit had already breached a support level on Tuesday, and traders said the bias remains firmly on the downside. Sign up here. Brent crude futures climbed over 4% on Tuesday, with the rally holding firm through the Asian session on Wednesday, amid concerns that the ongoing Iran-Israel conflict could disrupt supplies. The conflict has now entered its sixth day and anxiety is building over the risk of direct U.S. military involvement. U.S. President Donald Trump on Tuesday demanded Iran’s unconditional surrender. In a further development, three U.S. officials said Washington is deploying more fighter aircraft to the region to strengthen its military forces. A prolonged conflict "raises the odds of oil staying bid", and that’s "structurally bearish for Indian assets", leading to outflows, a currency trader at a Mumbai-based bank said. He expects 86.50 to act an initial support zone, with markets staying alert to potential dollar sales by the Reserve Bank of India around that level, he said. High oil prices tend to weigh on the Indian rupee due to the country’s dependence on crude imports. A rise in oil directly increases the demand for dollars from oil companies and leads to a deterioration in the trade balance. Meanwhile, the Federal Reserve’s policy decision on Wednesday will be in focus alongside developments in the Middle East. While the Fed is widely expected to keep rates unchanged, market attention will be on any signs around the timing and extent of future rate cuts. BofA Global Research expects the Fed's 2025 dot plot to shift higher, with the median projection rising by 25 basis points from the March estimate of 3.875%. KEY INDICATORS: ** One-month non-deliverable rupee forward at 86.46; onshore one-month forward premium at 8.5 paise ** Dollar index down at 98.7 ** Brent crude futures at $76.4 per barrel ** Ten-year U.S. note yield at 4.4% ** As per NSDL data, foreign investors sold a net $307.8mln worth of Indian shares on June 16 ** NSDL data shows foreign investors bought a net $32.4mln worth of Indian bonds on June 16 https://www.reuters.com/world/india/rupee-set-plumb-2-month-low-open-fears-over-oil-spurred-outflows-2025-06-18/

2025-06-18 00:46

SYDNEY, June 18 (Reuters) - Australia Prime Minister Anthony Albanese said on Wednesday the country would commence negotiations on a security and defence partnership with the European Union, and was also hopeful of a "symbolically important" trade deal. Albanese met with the European Commission President Ursula von der Leyen and European Council President Antonio Costa on the sidelines of the G7 summit where they discussed the EU proposal for a defence partnership. Sign up here. "We see this as an important framework for our current and future cooperation in areas like defence industry, cyber and counter-terrorism," Albanese told a news conference in Kananaskis where he is attending the G7 summit. Ministers from both sides will progress the talks in the coming weeks, Albanese said, adding he expected discussions to be concluded "pretty quickly". The EU struck defence partnerships with Japan and South Korea in November. EU officials have previously said these are not military alliances. Albanese said he was hopeful that recently revived negotiations for a separate free trade agreement with the European Union would result in a deal. "At this time its also symbolically important to see an outcome of an expansion of trade, because that is something that is going through difficult times at the moment," he told reporters. Albanese said "half" of the outstanding issues had been resolved, although Australia wanted to see greater access for its sheep and beef exports to Europe. Albanese met with senior U.S. trade officials, after the Australian leader's scheduled meeting with President Donald Trump was cancelled when Trump left the G7 a day early. Australia has highlighted its abundance of critical minerals in negotiations with the United States as it seeks to have U.S. tariffs lifted. https://www.reuters.com/world/asia-pacific/australia-commence-negotiations-security-defence-with-eu-2025-06-17/

2025-06-17 23:17

LONDON, June 18 (Reuters) - Britain's National Electricity System Operator said on Wednesday it expects to have sufficient supplies this winter, giving an early outlook of the supply and demand balance for the season. The growth in battery storage capacity on the electricity network systems, more available gas-fired power generation, more renewable energy and the commissioning of the Greenlink electricity interconnector between Ireland and Wales have increased the amount of power available. Sign up here. "Our early view of the winter ahead shows a positive outlook with sufficient margins throughout the colder winter months," said Deborah Petterson, NESO's director of resilience and emergency management. The NESO expects a de-rated margin, which is a measure of the amount of excess capacity expected above peak electricity demand, at 6.6 gigawatts (GW). That is the highest forecast margin since the 2019/20 winter period and is over 1 GW higher than last year’s winter outlook figure of 5.2 GW. This assumes total electricity demand of 60.5 GW. There could be some days when supply is tight, likely to occur in early December or mid-January, but NESO said it has tools in place such as market notices for backup generation to be made available. The full winter outlook will be published in October. https://www.reuters.com/sustainability/climate-energy/britain-will-have-enough-energy-supply-this-winter-grid-operator-says-2025-06-17/

2025-06-17 23:13

ORLANDO, Fla, June 17 (Reuters) - The Club World Cup clash between South Korea's Ulsan and African Champions League runners-up Mamelodi Sundowns of South Africa got underway more than an hour late after the players were taken from the field seconds from the start because of the threat of lightning. The two teams had come out onto the pitch to start their first match at the competition, but as they were ready to kick off the Group F clash, French referee Clement Turpin took the teams off the pitch. Sign up here. They were off for 50 minutes before returning for a brief warm-up and then beginning the game at 7.05pm local time. The match was scheduled for a 6pm local time kick off. Officials said there was a threat of lightning although there was no rain over the stadium but dark clouds could be seen in the distance and the wind had picked up noticeably. The threat of lightning within a 10-mile (16-km) radius is common cause to halt events in central Florida, where inclement weather can close in rapidly and prove devastating. Spectators were also told to leave their seats and take shelter on the concourse around the Inter & Co Stadium while the side of the field was cleared of all personnel, save for security guards. The weather forecast had been for passing showers in the afternoon in downtown Orlando. The city, like many parts of the United States, has been in the midst of a sweltering heat wave. https://www.reuters.com/sports/soccer/threat-lightning-delays-start-club-world-cup-clash-2025-06-17/