2025-12-10 06:08

Industries warn high energy bills make Europe uncompetitive EU to cut permit times, environmental checks for grid projects Aims to rapidly upgrade ageing energy networks Strengthens checks on cybersecurity, foreign ownership of grids BRUSSELS, Dec 10 (Reuters) - The European Union is set to slash permit wait-times and introduce top-down planning of electricity grid infrastructure across Europe, as it scrambles to curb high energy prices that industry executives have warned make Europe uncompetitive. Industrial energy prices in Europe are more than double those in the United States and China. Domestic energy-intensive manufacturers say they deter investments in the continent. Sign up here. The European Commission on Wednesday published legal proposals to slash deadlines for authorities across the EU to approve permits for energy projects, in a bid to speed up the modernisation of power networks, confirming draft plans previously reported by Reuters. For grid projects, the deadline would be two years, down from current wait times of up to a decade. If authorities fail to respond within the new timeframes, permits would be automatically approved. EU countries and lawmakers will negotiate and approve the proposals, before they pass into law. A severe blackout in Iberia this year highlighted a lack of interconnectors between countries to allow power to flow to areas of greatest need. Brussels will also develop centralised EU plans for cross-border electricity infrastructure and trigger a “gap filling” process to request project proposals if none exist. The EU has earmarked 30 billion euros from its 2028-2034 budget for cross-border energy projects. Years of lagging investments have resulted in ageing grids that cannot absorb Europe's growing supplies of fluctuating renewable power. Wind and solar generators are often switched off to avoid overloading networks, wasting low-cost renewable electricity and boosting costs. Wind power projects with more than 500 gigawatts of potential capacity are in queues for permits to connect to Europe's grid, industry data show. Brussels also plans to drop requirements for grid projects to undergo environmental assessments, hoping to expedite construction. Campaigners have criticised this plan. SECURITY CONCERNS Recent instances of Russian-linked ships damaging European energy cables and pipelines have heightened concerns among governments about the security of their energy networks. The proposals require EU-funded cross-border energy projects to be assessed for physical and cybersecurity risks. They would also be screened by regional groups of EU governments, regulators and companies for ownership or involvement by foreign companies, to flag potential security concerns. Foreign investments can "increase the Union’s exposure to energy-security related risks such as disruptions or reduced reliability of cross-border flows, in particular where such foreign investments originate from third countries with diverging geopolitical interests from the Union," the Commission said. https://www.reuters.com/sustainability/boards-policy-regulation/eu-fast-track-power-grids-projects-race-curb-energy-prices-2025-12-10/

2025-12-10 06:07

Dec 10 (Reuters) - Australia's St Barbara (SBM.AX) , opens new tab said on Wednesday that Chinese gold producer Lingbao Gold Group (3330.HK) , opens new tab will buy a 50% stake in its subsidiary St Barbara Mining for A$370 million ($245.5 million) in cash. St Barbara Mining owns the Simberi Gold Company, which will hold an 80% stake in Simberi Gold Project in Papua New Guinea (PNG). Sign up here. The remaining 20% stake will be acquired by Kumul Minerals, the state nominee for PNG's share of minerals projects in the country, for A$100 million. Kumul's investment comes as the PNG government seeks to expand national ownership of key resource projects. Meanwhile, Australian gold producers have been enjoying rapid equity gains, boosted by surging gold prices, prompting companies to unlock value from quality assets both domestically and overseas. "With Lingbao, we have a committed, experienced and a well-funded partner," St Barbara CEO Andrew Strelein said, adding that Kumul's participation in Simberi helps align the interests of key stakeholders. "St Barbara is now fully funded for its expected share of the development costs of the Simberi Gold Project." The company aims to reach a final investment decision on the Simberi Expansion Project in the third quarter of fiscal 2026. ($1 = A$1.5072) https://www.reuters.com/world/asia-pacific/hk-listed-lingbao-gold-buy-50-australias-st-barbara-unit-2455-million-2025-12-10/

2025-12-10 05:48

NEW YORK, Dec 10 (Reuters) - The U.S. dollar extended losses against major peers including the euro, Swiss franc, and Japanese yen on Wednesday after the Federal Reserve lowered interest rates in a widely expected move. The Fed's decision to lower the benchmark policy rate by a quarter of a percentage point to the 3.50%-3.75% range drew three dissents: Chicago Fed President Austan Goolsbee and Kansas City Fed President Jeffrey Schmid argued that the policy rate should be left unchanged, while Fed Governor Stephen Miran again advocated for a larger half-percentage-point reduction. Sign up here. The greenback lost ground against peer currencies immediately after the Fed's announcement. The dollar weakened 0.58% against the Swiss franc to 0.801 and was last down 0.4% to 156.24 against the Japanese yen . The euro was up 0.39% at $1.167. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, fell 0.38% to 98.84. https://www.reuters.com/world/asia-pacific/yen-weak-dollar-steady-countdown-fed-2025-12-10/

2025-12-10 05:43

MUMBAI, Dec 10 (Reuters) - The Indian rupee slipped on Wednesday, ending a session of back-and-forth price action shaped by portfolio flows, likely maturity of positions in the non-deliverable forwards market and caution ahead of the Federal Reserve's policy decision. The rupee closed at 89.9650 to the U.S. dollar, slightly weaker than the close of 89.8750 in the previous session. Sign up here. The currency swung through the day in an 89.77–90.08 band, after finding some respite from last week's record low of 90.42. Early gains sparked by likely inflows tied to equity fundraising faded as dollar bids picked up after noon, a trader at a private bank said. Asian currencies were mostly subdued, while the dollar index slipped to 99 ahead of the Fed decision. India's benchmark indexes, the BSE Sensex (.BSESN) , opens new tab and Nifty 50 (.NSEI) , opens new tab, fell 0.3% each, mirroring modest declines across regional markets. The Fed is widely expected to cut rates by 25 basis points, with traders set to parse policymakers' commentary and rate projections. Investors have scaled back expectations for 2026 cuts on persistent inflation concerns and signs of a more resilient U.S. economy. Money markets are pricing in about two more Fed cuts next year, on top of the one expected later on Wednesday. Odds of a January 2026 cut stand near 21%. "How forcefully (Fed Chair) Powell communicates a message of pause is likely most important for the dollar but steps to add liquidity to the markets could also play a role in FX reaction," MUFG said in a note. Risks of a hawkish tilt at the Federal Reserve also contributed to pegging back dollar-rupee far forward premiums with the 1-year implied yield down 4 basis points at 2.54%. https://www.reuters.com/world/india/rupee-may-hover-near-90-track-subdued-asian-fx-fed-decision-looms-2025-12-10/

2025-12-10 05:35

A look at the day ahead in European and global markets from Rae Wee Much of investors' attention for the week has been on the Federal Reserve's rate decision, but for a brief moment on Wednesday, focus in currency markets turned to the yen. Sign up here. The yen looked punch-drunk in Asia after a sudden spill overnight that saw it fall to a record low against the euro and slide nearly 0.9% against the Aussie . The dollar also threatened to break the 157 yen level . There was little to trigger the move, suggesting it was likely some positioning ahead of the Bank of Japan's (BOJ) policy meeting next week. A 25-basis-point hike is almost fully priced in by markets, but what comes next remains a blur. With fiscal and growth concerns lingering in Japan, there is little case for further policy tightening beyond December. So, should next week's expected hike be followed by yet another months-long wait, the trajectory for the yen is unlikely to change materially - meaning more downside risk for the currency. Even at 0.75%, rates in Japan would remain among the lowest in the world. It also comes as policymakers in Australia and Europe have said that their next move could be a hike. Elsewhere, markets reacted little to data that showed China's annual consumer inflation accelerated to a 21-month peak in November, while factory-gate deflation deepened. The Politburo, a top decision-making body of the ruling Communist Party, said earlier this week that China will keep expanding domestic demand and support the broader economy with more proactive policies in 2026. In Indonesia, the rupiah weakened slightly following news that its trade agreement with the United States is at risk of collapsing, according to a U.S. official, because Jakarta has backtracked on several commitments it made as part of the deal. An Indonesian government official later said that the country's tariff negotiations with the United States are proceeding on track, as agreed by leaders on both sides. Those aside, focus was squarely on the Fed, where Wednesday's outcome could potentially be one of the most fractious in years. The weeks leading up to the meeting have been stressful for investors, with little data to parse during a record 43-day U.S. government shutdown, conflicting messages from Fed officials and the unrelenting push from President Donald Trump's administration for lower rates. White House economic adviser Kevin Hassett, the frontrunner to be the Fed's next chair, told the WSJ CEO Council on Tuesday there is "plenty of room" to cut interest rates further, though he added that if inflation rises the calculation may change. Ahead of the Fed, the Bank of Canada will also announce its policy decision later on Wednesday, where it is expected to stand pat on rates, with easing inflation and a robustly growing economy reducing the need to cut further. Key developments that could influence markets on Wednesday: - Federal Reserve rate decision - Bank of Canada rate decision https://www.reuters.com/world/china/global-markets-view-europe-2025-12-10/

2025-12-10 05:12

Fed lowers rates, signals pause and one 2026 cut US stocks end higher after Fed decision, Powell comments Dollar, yields fall NEW YORK, Dec 10 (Reuters) - Major stock indexes jumped while U.S. Treasury yields declined on Wednesday after the Federal Reserve cut interest rates as expected and investors remained hopeful about further cuts ahead, even as the central bank signaled it will likely pause reductions for now. The U.S. dollar was lower against major currencies. Sign up here. The U.S. central bank cut rates by a quarter percentage point, and projections issued after its two-day meeting showed the median policymaker sees just one quarter-percentage-point cut in 2026, the same outlook as in September. In his press conference after the announcement, Fed Chair Jerome Powell declined to provide guidance on whether another interest rate cut lies in the near future. However, he said the U.S. labor market has significant downside risks and the central bank does not want its policy to push down on job creation. Stocks gained while Treasury yields lost ground following Powell's comments. "Today's rate cut was music to both the bond market and the stock market's ears," said Jake Dollarhide, CEO of Longbow Asset Management in Tulsa, Oklahoma. "The guidance for possibly one cut in 2026 is better than many dire predictions of no cuts in 2026, so there's a lot of good news to parse through here for investors." Weakness in the job market seemed to be more of a concern at this point than sticky inflation, Dollarhide said, adding there were "tremendous fears the bond vigilantes were going to hijack this bull market rally." The Dow Jones Industrial Average (.DJI) , opens new tab rose 497.46 points, or 1.05%, to 48,057.75, the S&P 500 (.SPX) , opens new tab rose 46.17 points, or 0.67%, to 6,886.68 and the Nasdaq Composite (.IXIC) , opens new tab rose 77.67 points, or 0.33%, to 23,654.16. Seasonally, December is one of the months of weaker performance for the S&P 500, except for the final two weeks when stocks tend to rise into year-end, known as the Santa rally, as investors square their books for the year. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab rose 5.30 points, or 0.53%, to 1,011.74. Earlier, the pan-European STOXX 600 (.STOXX) , opens new tab index ended 0.07% higher. The market has priced in a 78% chance the Fed will hold rates steady next month, compared with a 70% probability just before the rate cut announcement. Even though the rate forecast from the Fed was for one rate decline next year, the rate futures market still priced in two cuts in 2026. The Fed's decision to cut by 25 basis points drew three dissents. Complicating matters for policymakers is the lack of data due to the recent long U.S. government shutdown, which will delay November payrolls report to December 16, while inflation figures are due after that. The yield on the benchmark U.S. 10-year Treasury note fell 4.3 basis points to 4.143% after swinging between a session low of 4.137% and a three-month high of 4.209%. The 10-year yield was poised to snap a four-session streak of gains, its longest run of gains in five weeks. Yields around the globe have been climbing in recent weeks, as many central banks signaled they are either at or near the end of their own easing cycles, while the Bank of Japan is widely anticipated to hike rates at its policy meeting next week. The U.S. dollar fell against major peers including the euro, Swiss franc, and Japanese yen. The greenback was further weighed down by Powell's comments that the U.S. central bank's next move is unlikely to be a rate hike. In late afternoon trading, the dollar was down 0.8% against the Swiss franc to 0.8000 franc and was last down 0.6% at 155.92 against the Japanese yen . The euro last changed hands at $1.1691, up 0.6%, while the dollar index , which measures the greenback against a basket of currencies including the yen and the euro, slid 0.6% to 98.66. Gold prices reversed course to rise after the Fed's rate cut. Spot silver rose to a record peak of $61.85, with prices up 113% so far this year. In the energy market, oil prices rose after officials said the U.S. seized an oil tanker off the coast of Venezuela. Brent crude futures rose 27 cents, or 0.4%, to settle at $62.21 a barrel, while U.S. West Texas Intermediate crude futures gained 21 cents, or 0.4%, to close at $58.46 per barrel. https://www.reuters.com/world/china/global-markets-global-markets-2025-12-10/