2025-11-07 11:33

TOKYO, Nov 7 (Reuters) - Japan's industry ministry said on Friday it will temporarily raise gasoline and diesel subsidies from next week in an attempt to smooth the impact of planned tax cuts on the fuels. The country's ruling and opposition parties agreed this week to scrap the gasoline levy by December 31 and the tax on diesel by April 1 next year to ease the burden on households. Sign up here. By temporarily raising subsidies on gasoline and diesel, the government hopes consumers will not be tempted to delay purchases before the tax cuts are implemented. The move should also mean Japan avoids long queues at gas stations if there is a sharp overnight drop in prices. While referred to as provisional, the tax on gasoline and diesel has been in place since the 1970s, when it was introduced as a temporary step to fund road building and maintenance. The tax currently adds 25.1 yen ($0.17) per litre to the base rate of 28.7 yen on gasoline and 17.1 yen to the base rate of 15.0 yen on diesel. As part of efforts to ease the pain of rising inflation on households, Japan's government currently provides subsidies of 10 yen per litre for gasoline and diesel. These will rise to 15 yen on November 13, 20 yen for gasoline and 17.1 yen for diesel on November 27 and to 25.1 yen for gasoline and 17.1 yen for diesel on December 11. The subsidies will end when the fuel taxes are abolished. While lower prices could spur demand, a ministry official said Japan's gasoline consumption has been falling by more than 2% annually due to population decline and the wider use of hybrid vehicles, making a rebound unlikely. ($1 = 150.7800 yen) https://www.reuters.com/world/asia-pacific/japan-temporarily-hike-fuel-subsidies-smooth-tax-cut-impact-2025-11-07/

2025-11-07 11:29

Greece to import 0.7 bcm LNG annually from 2030 Deal part of US effort to replace Russian gas in Europe Greece expanding US LNG imports, infrastructure since 2020 ATHENS, Nov 7 (Reuters) - Greece has signed a deal to import 0.7 billion cubic metres of liquefied natural gas per year starting in 2030, its first long-term gas supply deal with the United States, which seeks to replace Russian gas inflows into Europe. The 20-year deal comes months after the Trump administration and the European Union signed a trade deal in July, with Europe pledging to buy $250 billion in U.S. energy - oil, LNG and nuclear technology - annually for the next three years as it seeks to phase out Russian gas from 2027. Sign up here. The supply will come under an agreement by Greece's biggest gas utility DEPA, energy company Aktor and U.S.-based Venture Global (VG.N) , opens new tab. Venture Global is building an export facility in Louisiana, its senior vice president Shaylyn Hynes told Reuters. U.S. officials hailed the deal on Friday at an energy conference in Athens in which Washington said it wants to replace every molecule of Russian gas coming into Western Europe in the coming years. "Greece had been at the end of a pipeline of as Russia-dominated energy supply system. Today, Greece becomes a launch point, the entry into Europe for American energy trade," U.S. Energy Secretary Chris Wright told a press conference in Athens. Greece has ramped up U.S. LNG imports since 2020, expanded gas infrastructure and backed a gas transportation scheme via a now underused gas pipeline to carry imported gas from its LNG terminals to Ukraine through Bulgaria and Romania as it seeks to bolster its role as a transit route into Europe. Wright promised to keep Ukraine supplied this year. https://www.reuters.com/business/energy/greece-signs-first-long-term-lng-supply-deal-with-us-2025-11-07/

2025-11-07 11:28

TSX ends up 0.2% at 29,912.19 For the week, the index loses 1.15% Materials group adds 1.4% as gold rises Tech sector falls 2.6% TORONTO, Nov 7 (Reuters) - Canada's main stock index ended higher on Friday as investors weighed prospects of an end to the U.S. government shutdown and stronger-than-expected domestic jobs data. The S&P/TSX Composite Index (.GSPTSE) , opens new tab ended up 43.60 points, or 0.2%, at 29,912.19, after clawing back its earlier losses. For the week, the index was down 1.15%, its second straight weekly decline. Sign up here. The U.S. benchmark S&P 500 also ended higher following reports of progress on the congressional impasse that has resulted in the longest federal government shutdown in U.S. history. Still, worries about sky-high tech stock valuations have dampened risk appetite. "The volatility is back ... we're still seeing clients put their money to work, but they're more conservative," said Michael Constantino, CEO of Webull Canada. CANADA ADDS JOBS IN OCTOBER Canada's economy added 66,600 jobs in October, compared to expectations for a decline of 2,500, and the unemployment rate fell to 6.9% from 7.1%. The data vindicates for now "the BoC’s clear hold signal and the Carney administration’s resistance against heaping on cyclical stimulus," Derek Holt, head of capital markets economics at Scotiabank, said in a note. Canada's budget on Tuesday forecast that the fiscal deficit will more than double this year, but much of the additional spending was focused on measures to raise economic productivity rather than boosting demand. Last week, the Bank of Canada signaled a possible end to its easing campaign. The materials group (.GSPTTMT) , opens new tab, which includes metal mining shares, rose 1.4% as the price of gold increased. Utilities (.GSPTTUT) , opens new tab rose 0.9%, led by a gain of 7.8% for the shares of Algonquin Power & Utilities Corp (AQN.TO) , opens new tab after the company reported quarterly earnings. Technology (.SPTTTK) , opens new tab was a drag, losing 2.6%, with shares of electronics equipment firm Celestica (CLS.TO) , opens new tab down 6.2%. Real estate fell 0.7%. Shares of Altus Group (AIF.TO) , opens new tab dropped 12% after the real estate services company's quarterly results missed estimates. https://www.reuters.com/business/tsx-futures-flat-ai-rally-wobbles-2025-11-07/

2025-11-07 11:20

BENGALURU, Nov 7 (Reuters) - India's consumer inflation rate likely plunged to the lowest in at least a decade in October on a sustained fall in food prices, and intensified by a higher base of comparison last year, according to the median forecast in a Reuters poll of economists. Some economists argued that a cut in the Goods and Services Tax, effective from late September, also contributed to the decline. Others said this may mark the trough in inflation. Sign up here. Inflation is cooling rapidly even as the latest official data showed Asia's third-largest economy grew nearly 8% in the April-June quarter, with the central bank expected to cut interest rates again next month. Vegetable prices have fallen by double digits for six consecutive months on an annual basis, keeping overall food inflation, which accounts for nearly half of the consumer price index (CPI) basket, in check. The CPI inflation rate tumbled more than a full percentage point to 0.48% in October from 1.54% in September, according to a November 4–7 Reuters poll of 42 economists. That would be the lowest in the current 2012‑base CPI series, introduced with the January 2015 release. Early next year, the government will shift , opens new tab the reference year on which the index is based to 2024 Forecasts for the data, due for release on November 12, ranged between -0.21% and 2.10%. "Base effects are most supportive in this month, as it mirrors the sharp increase in vegetable prices we had seen in October last year...(and) despite persistent unseasonal rainfall, food inflation remains contained in India, and we see distinct and broad-based disinflation across the country," wrote Rahul Bajoria, India & ASEAN economist at BofA Securities. Bajoria said there were downside risks to his inflation forecasts for this fiscal year, "largely reflecting lack of a food price pick up, which we typically see during the summer months." Economists have warned for several months that inflation has likely bottomed out, only for it to fall further the next month. "However, with unseasonal rainfall starting to impinge on supply, the risks appear skewed for a supply side shock to materialize, and with government raising import duties on pulses, several large sources of disinflation for food prices in 2025 might be on their last legs," Bajoria added. While inflation has been below the Reserve Bank of India's 4% target since February, economists say this masks shifts in household spending patterns. The Household Consumption Expenditure Survey for 2023/24 showed the share of food in the average Indian household's budget has declined , opens new tab. "Does the inflation basket accurately reflect consumer expense needs? I would say it's partial," said Kanika Pasricha, chief economic adviser at Union Bank of India. "This is exactly the reason why the government said ... it is coming up with a new CPI basket with a new base, which will probably have the share of the weight of food, in the CPI basket at 40% or lower in order to accurately reflect that impact." Core inflation, which excludes volatile food and fuel components and better reflects underlying demand, was expected to have eased to 4.30% in October from an estimated 4.50% in September. The statistics office does not publish official core inflation data. The wholesale price index likely dropped 0.60% year-on-year in October after a gain of 0.13% in September, the survey showed. https://www.reuters.com/world/india/india-cpi-inflation-likely-fell-multi-year-low-048-october-2025-11-07/

2025-11-07 11:07

S&P 500 posts weekly drop, backing off record high Tech sector leads pullback, weak labor data also in focus Stellar Q3 earnings season overall coming to a close NEW YORK, Nov 7 (Reuters) - Investors will seek clues about the health of the U.S. economy in the coming week following worrisome labor market reports and technology-led turbulence that has knocked the stock market off record highs. The S&P 500 (.SPX) , opens new tab ended on Friday with a weekly decline after three straight weeks of gains. The benchmark index was last down about 2.4% from its all-time closing peak on October 28 even after a generally strong third-quarter earnings season for large U.S. companies. Sign up here. This week, concerns about expensive equity valuations, especially for high-flying stocks linked to enthusiasm over artificial intelligence, were exacerbated by tepid jobs data, including a report that showed surging layoff announcements from U.S. employers. Alternative data released by private sector bodies have become more important for investors because the U.S. federal shutdown that began on October 1 has limited government releases. "We're not getting a lot of economic data," said Anthony Saglimbene, chief market strategist at Ameriprise Financial. "At current valuations and the kind of gains that we've seen... investors are just starting to be a little bit more cautious. I don't think that is bad, but it is coming at a time where there is growing uncertainty around the pace of growth in the economy." Investors were gauging whether the pullback in equities represented profit-taking and a healthy reset after an extended climb, or the start of a more severe slide. Fears that stocks are in an "AI bubble" have kept Wall Street on edge, with the benchmark S&P 500 up 14% year-to-date and 35% since its low for the year in April. The S&P 500 technology sector (.SPLRCT) , opens new tab, which has led the bull market that began more than three years ago, has been hit harder in this latest drawdown, falling about 6% since last week. A series of reports on Thursday suggested deteriorating U.S. labor market conditions. Data from workforce analytics company Revelio Labs showed 9,100 jobs were lost in October, while U.S. employers' planned layoffs soared to over 153,000 last month, global outplacement firm Challenger, Gray & Christmas said. The Chicago Fed estimated that the U.S. jobless rate likely edged up in October to the highest in four years. That data came a day after the ADP National Employment Report showed private employment rebounded by 42,000 jobs in October. The Challenger layoffs report, combined with the lack of government jobs data, "raises a red flag in terms of whether or not the labor market has really stabilized," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York. Next week would have been a busy week of economic data, with government reports due on consumer and producer prices and retail sales. Those releases are poised to be delayed due to the shutdown. Investors will instead seek insight on the economy from traditionally more secondary reports, including the small business optimism index due to be released on Tuesday by the National Federation of Independent Business. As investors weighed the economic impact of the shutdown, the U.S. transportation secretary warned on Friday the government could force airlines to cut up to 20% of flights if the shutdown did not end. The lack of government data is muddying the outlook for the Fed, which must decide whether to cut interest rates again at its next policy meeting in December. After the central bank eased by a quarter percentage point for a second straight meeting on October 29, Fed Chair Jerome Powell said another such reduction was not a foregone conclusion. "The Fed needs help trying to figure out what's going on in the jobs market. They're getting seemingly conflicting signals and what they decide to do in December has ramifications obviously for the stock market," said Chuck Carlson, chief executive officer at Horizon Investment Services. Fed funds futures late on Friday were pricing in a roughly 65% chance of a rate cut in December. Before Powell's October comments, investors had viewed such a cut as almost a done deal. Investors were watching for developments that might suggest the end of the shutdown, which this week became the longest in U.S. history. Focus was also on remaining high-profile quarterly reports, as a stellar earnings season in general nears a close. With 446 companies in the index having reported, 82.5% posted profits above analyst expectations, which would be the highest beat rate since the second quarter of 2021, LSEG IBES said on Friday. Reports due next week include Walt Disney (DIS.N) , opens new tab and tech stalwart Cisco Systems (CSCO.O) , opens new tab. Those lead up to the quarterly report the following week from semiconductor firm Nvidia (NVDA.O) , opens new tab, the largest company in the world by market value that has symbolized investor enthusiasm for AI. "I would just expect a little bit more volatility around technology leaders and technology as a whole heading into that Nvidia report," Saglimbene said. https://www.reuters.com/business/wall-st-week-ahead-investors-watching-us-economic-signs-market-pulls-back-tech-2025-11-07/

2025-11-07 11:02

BUENOS AIRES, Nov 7 (Reuters) - Heavy soil moisture in Argentina's agricultural fields following an unusually rainy winter is expected to offset the impact of lower rainfall in the coming months due to La Nina, agroclimate specialists said. By the end of October, Argentina, a key global food exporter, had recorded four consecutive months of above-average rainfall, according to the Rosario Grains Exchange. Sign up here. The fertile fields are now saturated in some areas, providing a favorable starting point for the warmer half of the year, which will be influenced by La Nina. "Most models are already indicating the persistence of a La Nina event," Leonardo De Benedictis, a meteorologist specializing in agriculture, told Reuters. La Nina is a climate pattern marked by unusually cold Pacific Ocean temperatures, which typically reduces rainfall in key Argentine farming regions. However, the abundant precipitation over the last four months could act as a buffer. "Northern Buenos Aires, Entre Rios, and southern Santa Fe are closer to excess (water) than deficit, which is a very positive situation and shouldn't have such a negative impact," said De Benedictis, referring to the country's core agricultural provinces. In Argentina, the effects of La Nina are expected to be felt as farmers plant corn and soybeans for the 2025/26 season, with harvests projected by the Rosario Grains Exchange at 47 million and a record 61 million tons, respectively. SHORT AND WEAK LA NINA De Benedictis said changes in the rainfall pattern, following a week of heavy rains, would begin to show next week, with longer intervals between storm fronts and higher temperatures. Adding that the current La Nina phenomenon could be weak and short-lived. "It is low intensity and limited in duration, with the most notable impact likely in the second half of November, December, and January," he said. German Heinzenknecht of the Applied Climatology Consulting firm forecasts that November rainfall could remain near the usual 100–120 mm, followed by a slightly drier period through early January. "I think things will normalize in the second half of January and into February," he added. La Nina is always a concern for Argentine farmers, and two years ago it caused one of the worst droughts on record. However, Heinzenknecht added that for now there's little reason to be alarmed this time. https://www.reuters.com/business/environment/wet-argentine-farmland-offsets-drier-la-nina-outlook-2025-11-07/