2025-10-27 12:29

MILAN, Oct 27 (Reuters) - Japanese automaker Mazda (7261.T) , opens new tab has teamed up with its joint venture with China's Changan (000625.SZ) , opens new tab to pool carbon credits and help avoid carbon emissions fines, an EU document showed. Several legacy carmakers face potential European Union fines as their shift to electric vehicles has been slower than expected. But those with lower shares of EV sales can "pool" their emissions with segment leaders, purchasing credits from them and lowering their overall averages. Sign up here. EU's fines, which carmakers have said could total up to 15 billion euros ($17.5 billion) for the industry, were initially envisaged to apply to 2025 carbon emissions levels. However, in March, the European Commission bowed to pressure from car manufacturers and allowed compliance based on their average emissions over 2025-2027. The pool between Mazda and its 50/50 joint venture with Changan is valid for 2025 and is open to other manufacturers until the end of November. Mazda is already part of a different pool formed at the beginning of this year around Tesla (TSLA.O) , opens new tab which also includes Stellantis (STLAM.MI) , opens new tab and Ford (F.N) , opens new tab. Including the new Mazda one, a total of five pools have been set up so far this year. ($1 = 0.8575 euros) https://www.reuters.com/sustainability/climate-energy/mazda-forms-eu-carbon-emissions-pool-with-changan-joint-venture-2025-10-27/

2025-10-27 12:00

Oct 27 (Reuters) - The uncertaintyU.S. President Donald Trump's tariff strategy injected into global financial markets has been exacerbated by his push for bilateral trade agreements as well as legal challenges to the levies. Trump's order on "reciprocal" tariffs for exports from 69 trading partners listing higher import duty rates of 10% to 41% kicked in on August 7, raising the average U.S. import duty to its highest in a century. Sign up here. In the latest development, Trump said he expects to "come away with a deal" with China when he meets Chinese President Xi Jinping for talks in South Korea on Thursday. U.S. officials said negotiators from both countries finalised a framework on October 26 for a potential agreement aimed at halting steeper American tariffs and Chinese rare earths export controls. Here is a timeline of upcoming dates and events that could have a bearing on U.S. tariff policy. October 30 Trump and Xi are to meet in South Korea, with expectations building that the discussions could pave the way for a potential trade deal. November 1 A 25% tariff on all imported medium- and heavy-duty trucks will take effect. Additional 100% tariffs on China's U.S.-bound exports will go into force, with new export controls on critical software, if the two countries do not reach a deal. January 1, 2026 Previously levied 25% duties will rise further - to 30% for upholstered furniture and 50% for cabinets and vanities from countries without trade agreements. https://www.reuters.com/world/us/trumps-trade-war-tariff-deadlines-key-upcoming-events-2025-10-13/

2025-10-27 11:55

Oct 27 (Reuters) - What matters in U.S. and global markets today By Mike Dolan , opens new tab, Editor-At-Large, Finance and Markets Sign up here. Trade and inflation relief are driving world stock markets sharply higher on Monday, as we begin a packed week of big central bank meetings and heavyweight tech earnings. I'll get into all the market-moving news below. Please also check out my column today in which I take a look at how increasingly fragmented global trade and politics could make the repatriation of global capital a key theme in the coming years. TODAY'S MARKET MINUTE * Top Chinese and U.S. economic officials on Sunday hashed out the framework of a trade deal for U.S. President Donald Trump and Chinese President Xi Jinping to decide on later this week that would pause steeper American tariffs and Chinese rare earths export controls, U.S. officials said. * Argentine President Javier Milei's party cruised to victory in midterm legislative elections as voters handed him a mandate to keep pushing through his radical overhaul of the economy despite widespread discontent with his deep austerity measures. * China's state-owned defense giant Norinco in February unveiled a military vehicle capable of autonomously conducting combat-support operations at 30 mph (50 kph). It was powered by DeepSeek, the company whose artificial intelligence model is the pride of China's tech sector. * A common view in the crude oil market is that Western sanctions against Russia's exports are fairly pointless as the market quickly devises ways to keep cargoes flowing. But ROI Asia Commodities Columnist Clyde Russell argues that it all depends on what Western powers want to achieve. * Copper has a long history of mine supply disruption, but this year is proving to be a particularly troubled one for a sector that has been racing to keep up with smelter demand. Read the latest from ROI Metals Columnist Andy Home. STOCKS ZOOM ON TRADE AND INFLATION RELIEF The seemingly endless "on-off" U.S.-China trade negotiations are back on once more. Top Chinese and U.S. officials on Sunday hashed out a framework for a trade deal for President Donald Trump and Chinese President Xi Jinping to decide on later this week, one aimed at pausing steeper U.S. tariffs and Chinese rare earths export controls. Treasury Secretary Scott Bessent said talks at the ASEAN Summit in Kuala Lumpur had eliminated the threat of Trump's 100% tariffs on Chinese imports from November 1, and he noted that he expected China to delay rare earth export curbs too. U.S. stock indexes clocked record closing highs on Friday, with the biggest weekly gains since August after a slightly softer-than-feared September U.S. inflation readout baked in expectations for another Federal Reserve interest rate cut on Wednesday. Wall Street index futures surged another 1% ahead of Monday's bell, with Japan and South Korea's equity benchmarks up more than 2% each and Chinese stock indexes up more than 1% to more than 10-year highs. China's offshore yuan also jumped to a six-week high, guided by a People's Bank of China reference rate that was at its strongest since October last year. Gold prices fell back nearly 2% as hopes of easing U.S.-China trade tensions lifted risk appetite for equities. This week's earnings diary sees five of the so-called "Magnificent Seven" megacaps - Meta, Microsoft, Alphabet, Amazon and Apple - due to report. They collectively make up about a quarter of the entire S&P 500 value. Facing a heavy schedule of new debt sales this week, including $139 billion in 2- and 5-year notes later today, U.S. Treasury yields have nudged higher, helped along by the stock market surge and creeping inflation expectations in surveys. The Bank of Canada is expected to cut by a quarter point on Wednesday, too, with Trump's decision to add a 10% additional tariff on Canadian imports likely to reinforce the easing argument. Meanwhile, the Canadian dollar remains firm. The European Central Bank and Bank of Japan are expected to hold the line, with rising business expectations in Germany encouraging the ECB to stand pat and the BoJ assessing the new Japanese prime minister's fiscal policies. The yen and the euro were firmer. Chart of the day Five of the so-called "Magnificent Seven" megacaps report earnings this week, including Meta, Microsoft, Alphabet, Amazon and Apple. AI-related capex and cloud computing growth will be watched very closely. Today's events to watch * Dallas Federal Reserve's October manufacturing survey (8:30 AM EST) * U.S. corporate earnings: Universal Health, Cincinnati Financial, Cadence Design, NXP, Welltower, Principal Financial, Keurig Dr Pepper, Brown & Brown, Nucor, F5, Revvity, Hartford, Arch Capital, Waste Management, Alexandria Real Estate * U.S. Treasury sells $69 billion of 2-year notes and $70 billion of 5-year notes * U.S. President Donald Trump visits Japan as part of wider Asia tour Want to receive the Morning Bid in your inbox every weekday morning? Sign up for the newsletter here. You can find ROI on the Reuters website , opens new tab, and you can follow us on LinkedIn , opens new tab and X. , opens new tab Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles , opens new tab, is committed to integrity, independence, and freedom from bias. https://www.reuters.com/business/finance/global-markets-view-usa-2025-10-27/

2025-10-27 11:51

JOHANNESBURG, Oct 27 - Mozambique's sole euro bond rallied on Monday after TotalEnergies (TTEF.PA) , opens new tab announced the lifting of force majeure on its multibillion-dollar liquefied natural gas project, paving the way for construction to resume following prolonged delays. The dollar bonds maturing in 2031 climbed over 2 cents, with bids at 89.38 cents on the dollar by 1112 GMT, bringing the yield down to 12.53%, its lowest level in two weeks. Sign up here. The lifting of force majeure is a positive sign for the project, whose potential export revenue could transform Mozambique's economy, though the 13 million metric-ton-per-year plant is only expected to come online in 2029. The plant, located in the conflict-prone Cabo Delgado province, is reported to be 40% complete, but regional security concerns persist despite Rwanda-backed military support. Morgan Stanley strategists Neville Mandimika and Simon Waever said in a note that Mozambique's "near-term fragility and its long-term potential could not be more striking", citing financing constraints and political tensions following election unrest last year. "Yet, if the country can maintain stability and implement prudent reforms, the LNG boom expected in 2029/2030 could create fiscal space, improve the balance of payments, and support broad-based growth," they added. https://www.reuters.com/world/africa/mozambique-bonds-rise-after-totalenergies-lifts-force-majeure-lng-project-2025-10-27/

2025-10-27 11:51

Percentage of investors long duration falls -J.P. Morgan survey Bond investors believe soft landing in sight Focus on end of quantitative tightening End of QT bullish for Treasuries NEW YORK, Oct 27 (Reuters) - Bond investors are re-examining their holdings of longer-dated Treasuries, with some reducing positions and others even going short relative to their benchmark, as the Federal Reserve prepares to cut interest rates by another quarter percentage point on Wednesday. Many bond investors expect the Fed to continue to adopt a measured pace in cutting interest rates. Portfolio managers tend to favor duration, which entails buying longer-dated debt, when the Fed is easing, as a hedge against further economic weakness. But some investors are backing away from that trade on views a soft landing for the world's largest economy remains within reach. Sign up here. The Federal Open Market Committee, which sets monetary policy, is expected to end its two-day meeting by announcing it will lower the benchmark overnight rate by 25 basis points to a range of 3.75%–4.00%, which would be its second easing this year. In September, the FOMC ended a nine-month pause, cutting rates by a quarter of a point as signs of a weakening labor market emerged. Investors will also closely parse remarks from Fed Chair Jerome Powell for signals about when the central bank might conclude its balance sheet reduction program, known as quantitative tightening (QT). Powell recently signaled that the end of QT is approaching — fueling speculation that the Fed could either announce its conclusion at this week's meeting or outline a roadmap for winding it down. This should be bullish for Treasuries because it reduces their supply in the market, pushing prices higher and yields lower. An exit from QT also means the Treasury's financing requirements would decline because it no longer needs to borrow as much to cover the Fed's redemptions. Under QT, Treasury's borrowings effectively increase. The Fed shrinks its balance sheet by letting the bonds it holds mature. The Treasury redeems the debt and pays the U.S. central bank by subtracting the required amount from the cash balance it keeps on deposit at the Fed. In order to replace the cash it paid the Fed, the Treasury needs to sell new securities. "It's another tailwind for fixed income such as Treasuries," said Neil Sutherland, portfolio manager at Schroders. "At the margin, it merits going long bonds but since yields have come down, valuations are not quite as compelling as they were three to four months ago. It does suggest that fixed income remains well supported." PULLBACK FROM DURATION? When the Fed enters a rate-cutting cycle, investors typically extend duration, anywhere from U.S. five-year to 30-year Treasuries. In periods of easing, shorter-dated yields fall, so investors reach further out the curve to lock in higher long-term rates before they decline further. As such, longer-dated debt has historically outperformed shorter-duration Treasuries during Fed easing. "Dealers are telling me that I should extend duration and buy as long as I possibly can because we're going into recession and everything's going to break down," said Byron Anderson, head of fixed income at Laffer Tengler Investments in Scottsdale, Arizona. "But I'm just on the other side of that argument, pushing short, being protective, buying T-bills, and just waiting. I'm not buying the idea that we're going into economic disaster. I know things are bad for big parts of the consumer base and I get that the job market has stagnated, but it hasn't fallen off a cliff." Overall, there has been a retreat from long-duration positioning. JP Morgan's latest Treasury Client Survey showed that the percentage of investors that are long duration relative to their benchmark fell as of October 20, while those with shorter duration increased. The survey of all its clients showed the fewest outright longs since August 25, the bank said. Brendan Murphy, head of fixed income, North America at Insight Investment in Boston, said the firm is still overweight duration overall, "but probably a bit less overweight than we were earlier in the year." He added that "rates have rallied a fair amount and so we've reduced duration a little bit." That overweight, he added, is concentrated in the "intermediate part of the curve and probably the five-year is where the preference is." Tony Rodriguez, global head of fixed income strategy at Nuveen in Minneapolis, believes in going slightly above neutral duration in bond portfolios, or adding a little bit more risk with the focus as well on the front and intermediate sector. The positioning reflects steady fundamentals and a solid technical picture in the bond market, Rodriguez said. "We think the economy will do a little better next year than this year," the Nuveen strategist said. "You will begin to see a little progress on inflation. It's going to be slow, but that will cause the Fed to be less aggressive with cuts." https://www.reuters.com/business/finance/countdown-fed-cut-bond-investors-scale-back-longer-dated-treasuries-2025-10-27/

2025-10-27 11:38

Oct 27 (Reuters) - Albemarle (ALB.N) , opens new tab said on Monday it will sell a 51% stake in its refining catalyst solutions business, Ketjen, to private equity firm KPS Capital Partners, and divest its 50% interest in the Eurecat joint venture to France's Axens SA, in deals worth about $660 million. Albemarle, one of the world's largest lithium producers, said it would use the proceeds for debt reduction and general corporate purposes as part of its efforts to boost financial flexibility and refocus on its core lithium and bromine units. Sign up here. The sale marks Albemarle's latest move to streamline its portfolio amid a downturn in lithium prices that has pressured earnings and cash flow this year. Once the transactions are closed, expected to be in the first half of 2026, Albemarle said it would retain a 49% minority stake in Ketjen and full ownership of its Performance Catalyst Solutions business, including the PCS plant in Pasadena, Texas. KPS, which manages more than $19 billion in assets, said it will leverage its manufacturing experience to grow Ketjen's global refining catalyst operations and drive profitability. https://www.reuters.com/business/albemarle-divest-ketjen-control-eurecat-stake-660-mln-deal-2025-10-27/