2025-10-29 07:20
MADRID, Oct 29 (Reuters) - Some in solemn silence, others seething with anger, hundreds of relatives of the victims of deadly floods in Spain's Valencia region flocked to a state funeral presided over by King Felipe on Wednesday, a year after the tragedy killed 237 people. Many arrived at the futuristic venue known as the City of Arts and Sciences wearing black T-shirts reading, in Valencian: "Their deaths were avoidable". Sign up here. "We have many mixed emotions," Carmina, a relative of a victim of the floods told Reuters. "We have been looking forward to this ceremony for a long time. It was a collective death and a collective funeral was necessary. The day has come and here we are to pay tribute to our people." A few of those attending chanted insults against regional leader Carlos Mazon, who is under investigation for his role in the tragedy and attended the ceremony despite some relatives asking that he stay away. On Saturday, tens of thousands of people demonstrated in Valencia calling for his resignation. Mazon told reporters: "Today is not the day for confrontation. We must reflect on the helplessness felt by so many Valencians in the days that followed when we realised the magnitude of an unfathomable tragedy. We tried to do our best in unimaginable circumstances, but in many cases it was not enough." TORCH-LIT MARCHES Earlier in the day, protesters covered the pavement of a central square in Valencia with foil blankets, each representing a victim. As night fell, two silent, torch-carrying marches joined together in Benetusser, one of the suburbs of Valencia city that was most affected by the floods. Spanish authorities were still finding victims buried in the mud as recently as last week, as the country comes to terms with the most catastrophic flooding in Europe in more than five decades. Flash floods caused by torrential rains swept away bridges, cars and people and swamped homes and underground car parks on October 29, 2024. Some 229 people died in the Valencia region and a further eight in other parts of Spain. Protesters and some relatives accuse the regional government of failing to warn citizens early enough during the emergency, sending a text message alert when many buildings were already under water. A court is investigating Mazon's handling of the emergency and his whereabouts on the day, after a local journalist said she had a nearly four-hour lunch with him when he was meant to be at an emergency services meeting. Mazon has refused to provide details of the lunch or show the restaurant bill but says he was kept informed at all times over the phone. The government on Tuesday approved 5 billion euros ($5.8 billion) of loan guarantees to help businesses and homes affected by the floods. The government has so far handed out more than 8 billion euros to clear up devastated areas. The heavy rains and subsequent flash floods were caused by a high-altitude isolated depression - referred to locally as a DANA - a highly destructive weather system created when cold and warm air meet to produce powerful rain clouds. It typically happens after a hot summer, and scientists believe the phenomenon is occurring more frequently due to climate change. ($1 = 0.8575 euros) https://www.reuters.com/sustainability/climate-energy/spain-marks-deadly-valencia-floods-anniversary-with-state-funeral-solemn-marches-2025-10-29/
2025-10-29 07:18
RIYADH, Oct 29 (Reuters) - OpenAI's Chief Financial Officer Sarah Friar said in Riyadh on Wednesday that this week's deal with Microsoft allows the company to continue raising capital in a much less complex manner. Friar also said that OpenAI's intention to collaborate with governments globally to deploy its technology could enhance the United States' soft power. Sign up here. https://www.reuters.com/business/openai-cfo-says-microsoft-deal-boosts-capital-raising-efficiency-2025-10-29/
2025-10-29 07:04
JOHANNESBURG, Oct 29 (Reuters) - The South African rand gained in early trade on Wednesday, as investors braced for a day headlined by the Federal Reserve's decision and an easing of U.S.-China trade tensions. At 0638 GMT, the rand traded at 17.1350 against the dollar , up about 0.1% from its Tuesday close. Sign up here. "The ZAR put in a strong performance from yesterday afternoon. It is higher against all the majors, even with the gold price staying below $4,000.00. The main reasons is that the U.S are almost certain to cut rates tonight," said Adam Phillips, treasury specialist at Umkhulu Treasury. Economists have said the U.S. Federal Reserve is poised to reduce interest rates by 25 basis points at its meeting tonight. Phillips added that operators are also looking ahead to U.S President Donald Trump's meeting with Chinese President Xi Jinping tomorrow which could influence sentiment. Domestically-focused traders looked at money supply (ZAM3=ECI) , opens new tab and private sector credit (ZACRED=ECI) , opens new tab data which came out at 0600 GMT today. South Africa's benchmark 2035 government bond was firmer in early deals, as the yield fell 1.5 basis points to 8.87%. https://www.reuters.com/world/africa/south-african-rand-gains-expectations-fed-rate-cut-2025-10-29/
2025-10-29 07:02
Powell's comments reduce odds of December rate cut Dollar index rises, euro and yen weaken against greenback Sterling drops as BoE rate cut expectations increase NEW YORK, Oct 29 (Reuters) - The dollar gained on Wednesday after Federal Reserve Chair Jerome Powell pushed back against market pricing for another rate cut at the U.S. central bank's December meeting, after the U.S. central bank lowered rates as expected. Wednesday's rate cut drew dissents from two policymakers, with Governor Stephen Miran again calling for a deeper reduction in borrowing costs and Kansas City Fed President Jeffrey Schmid favoring no cut at all given ongoing inflation. Sign up here. "The dissent from Schmid is hawkish, that captures the sentiment from a few Fed officials so there could be some pressure on Powell to hold back market pricing for a December cut," said Adam Button, chief currency analyst at investingLive in Toronto. Powell said that U.S. central bank officials are struggling to reach a consensus about what lies ahead for monetary policy and that financial markets should not assume another interest rate cut will happen at the end of the year. Odds of a cut at the Fed's December meeting are now at 62%, down from around 85% earlier on Wednesday. The U.S. central bank further announced that it will restart limited purchases of Treasury securities after money markets showed signs that liquidity was becoming scarce, a condition the U.S. central bank has pledged to avoid. Traders are also focused on trade talks between the U.S. and China, with U.S. President Donald Trump due to meet China's leader Xi Jinping on Thursday. The dollar index was last up 0.63% on the day at 99.28, with the euro down 0.56% at $1.1585. Both the European Central Bank and the Bank of Japan are expected to hold rates steady on Thursday. The Japanese yen weakened 0.56% against the greenback to 152.86 per dollar. It had strengthened earlier after U.S. Treasury Secretary Scott Bessent urged Japan's government to give the central bank scope to raise interest rates, escalating his warning to Tokyo against keeping the yen too weak through prolonged low borrowing costs. Bessent, who was in Japan with Trump for talks with the newly-formed government of Prime Minister Sanae Takaichi, has repeatedly criticised the BOJ for its slow pace of rate hikes. STERLING AND AUSSIE Britain's pound was among the biggest losers as traders also adjusted for rising odds that the Bank of England will cut rates next week. "The Bank of England is squarely focused on inflation. But in terms of their characterization of the outlook, one of the pieces that they've been highlighting has been the labor market," said Eric Theoret, FX strategist at Scotiabank in Toronto. "The data definitely looks to have softened. And so with that lower inflation print I think it gives a bit more of a green light for the Bank of England to ease," Theoret said. Data last week showed that British inflation unexpectedly held steady in September. A report earlier this month also showed that British workers' pay grew at the weakest pace since 2022 and the jobless rate nudged higher. Goldman Sachs said on Tuesday it expected the BoE to cut rates next month, having previously seen no easing this year. Sterling was last down 0.9% against the dollar at $1.3151 and reached $1.3137, its lowest since May 12 . The Canadian dollar was little changed on the day, after earlier hitting a one-month high. The Bank of Canada reduced its key overnight interest rate to 2.25% on Wednesday, as widely expected, and signaled this could mark an end to its cutting cycle unless the outlook for inflation and the economy changed. In cryptocurrencies, bitcoin fell 1.37% to $111,295. https://www.reuters.com/world/asia-pacific/dollar-backfoot-ahead-expected-fed-cut-aussie-gains-cpi-2025-10-29/
2025-10-29 06:51
US Fed policy statement due at 1800 GMT Gold climbs nearly 2% Dips may provide chance for central banks to ramp up purchases -analysts Oct 29 (Reuters) - Gold rebounded nearly 2% on Wednesday as investors found the metal attractive after prices fell to a three-week low in the previous session, while the Federal Reserve rate cut decision and Chair Jerome Powell's speech took centre stage. Spot gold was up 1.9% at $4,024.56 per ounce, as of 0218 GMT, after dropping to its lowest since October 6 on Tuesday. Sign up here. U.S. gold futures for December delivery gained 1.4% to $4,039.50 per ounce. "Bargain-hunting could be (supporting gold) because it has lost a bit more than 10% of its value, which makes it attractive again because the underlying gold story is still valid," said Quantitative Commodity Research analyst Peter Fertig. "There might also be some central bank currency reserve managers who started to have a good opportunity to buy a bit more gold (on the dip)," Fertig added. U.S. President Donald Trump began the final leg of his Asia trip in South Korea on Wednesday, optimistic about advancing an unresolved tariff deal with President Lee Jae Myung and striking a trade war truce with Chinese President Xi Jinping. Trump and Xi are set to meet in South Korea on Thursday. "Progress in U.S.-China trade talks continues to sap demand for haven assets such as gold, which extended a pullback as tension eased ... The recent declines may provide an opportunity for central banks to ramp up purchases," ANZ said in a note. Meanwhile, the Fed is widely expected to deliver a 25-bp rate cut at its policy meeting on Wednesday, as investors look to any forward-looking commentary from Chair Powell. Non-yielding gold thrives in a low-interest-rate environment and during times of economic uncertainty. Gold prices have climbed about 52% year-to-date, reaching an all-time peak of $4,381.21 on October 20, bolstered by geopolitical and economic uncertainties, rate-cut bets and sustained central bank buying. Spot silver gained 2.8% to $48.37 per ounce, platinum was up 1.6% at $1,611.66 and palladium rose 1.6% to $1,415.69. https://www.reuters.com/world/india/gold-steadies-ahead-fed-verdict-trade-optimism-limits-upside-2025-10-29/
2025-10-29 06:51
U.S. president makes final stop on five-day Asia trip Holds talks on trade, security with South Korean President Lee 'Dramatic progress' helped break tariff impasse, Seoul says Trump expects to cut China tariff related to illicit fentanyl trade GYEONGJU, South Korea, Oct 29 (Reuters) - Donald Trump and South Korean President Lee Jae Myung finalised details of their fraught trade deal at a summit in South Korea on Wednesday, and the U.S. president also sounded an optimistic note about a looming summit with China's Xi Jinping. “We made our deal, pretty much finalised it," Trump said at a dinner with Lee and other regional leaders on the sidelines of an Asia Pacific forum. Sign up here. The allies unveiled a deal in late July under which Seoul would avoid the worst of U.S. tariffs on its imports by agreeing to pump $350 billion of new investments into the United States in return for lower tariff rates. But talks over the structure of those investments had been deadlocked and both sides had played down expectations for a deal during Trump's visit. "Prospects were not bright even last night, and there was dramatic progress on the day," Kim Yong-beom, South Korea's top presidential policy chief, told reporters, without providing further details. AGREEMENT ON INVESTMENTS IN US Trump and Lee agreed that Seoul can split its promised $350 billion investment fund into $200 billion in cash to be paid in instalments and capped at $20 billion per year, Lee's aides said. The other $150 billion is to be spent on investments in shipbuilding, which South Korea has promised to help Trump restore. The South Koreans said the two sides agreed to split profits 50/50 before the initial investments are recouped, and to only pursue commercially viable projects. U.S. Commerce Secretary Howard Lutnick would head an investment committee to assess potential projects. The White House did not immediately respond to a request for comment on the details of a Korea trade deal, which needs to be ratified by South Korea's parliament. Arriving from Tokyo hours after North Korea test-fired a nuclear-capable cruise missile, Trump was given a lavish welcome by Lee in Gyeongju, a historic city hosting this year's Asia-Pacific Economic Cooperation forum. His talks with Xi are set for Thursday in the port city of Busan. TRUMP PREDICTS 'GOOD OUTCOME' FROM XI TALKS Speaking to reporters en route to South Korea, Trump dismissed the North Korean missile test and said he was squarely focused on his meeting with Xi, leader of the world's second-largest economy. "I think we're going to have a very good outcome for our country and for the world, actually," Trump said. He added that he expects to reduce U.S. tariffs on imports of Chinese goods in exchange for a commitment from Beijing to curb exports of fentanyl precursor chemicals. The United States could halve the levies of 20% on Chinese goods it now charges in retaliation for the export of such chemicals, the Wall Street Journal said. China's foreign ministry said the meeting of the two leaders would "inject new momentum into the development of U.S.-China relations", and Beijing was ready to work together for "positive outcomes". Skipping the main APEC summit, Trump attended a dinner on Wednesday with Lee and other countries' leaders. He was due to meet Xi before departing on Thursday. Negotiators from the world's top two economies hashed out a framework on Sunday for a deal to pause steeper American tariffs and Chinese rare earths export controls, U.S. officials said. The news sent stocks to record peaks. Beijing has been more circumspect about the prospect of an agreement, but in a possible sign of thawing, China bought its first cargoes of U.S. soybeans in several months, Reuters reported exclusively on Wednesday. EXTRAVAGANT WELCOME Lee wooed Trump with gifts and praise, presenting him with a gold crown and the "Grand Order of Mugunghwa" medal, South Korea's highest decoration. At the start of a working lunch topped off with a "golden dessert", Lee pledged to spend more on defence, seeking to head off a Trump concern that U.S. allies are not pulling their weight militarily. He also asked that the U.S. allow the country to reprocess nuclear fuel to power submarines that could track North Korean and Chinese vessels for longer periods. Seoul is barred from reprocessing without U.S. consent, under a pact between the countries. Trump pledged to help "straighten out" South Korea's problems with its nuclear-armed northern neighbour. The two are still technically at war after their 1950-53 war ended in an armistice, not a peace treaty. Trump, who has repeatedly called for a meeting with reclusive North Korean leader Kim Jong Un to take place during this trip, said on Wednesday the timings would not work out. Lee's aide, Kim, said a factsheet on South Korea's agreements with the U.S. on security and trade would be ready within several days, while a memorandum of understanding that contains details of the trade agreement was close to complete. In contrast to the official welcome, hundreds of protesters gathered near the summit venue for anti-Trump rallies and there were some scuffles with police. "World leaders and governments are busy flattering Trump and displaying every possible act of diplomatic charm just to persuade him to lower U.S. tariffs by a few percent," said Kwon Young-guk, a former presidential candidate from a minor South Korean left-wing party attending the rally. "How absurd is it." https://www.reuters.com/world/china/trump-heads-south-korea-face-trade-talks-north-korean-missiles-2025-10-28/
