2025-10-16 11:33
Oct 16 (Reuters) - The European Parliament's energy committee on Thursday supported proposals to speed up the EU's phase-out of Russian gas by a year. Under the new proposal, imports of natural gas from Russia would be banned from the start of next year, with limited exceptions until January 1, 2027, for contracts that were concluded before June 17, 2025. Sign up here. The draft ban will now move to the whole Parliament for approval, or amendments, and will then be negotiated with European Union member states. The European Commission originally proposed in June a legally binding ban on EU imports of Russian gas and liquefied natural gas by the end of 2027. But lead lawmakers on the issue in the Parliament proposed moving forward this deadline to January 1, 2027. Diplomats from EU countries have said it is unlikely that governments will agree to bring forward the ban by a year, but that EU lawmakers could use this demand as leverage to secure other changes in the negotiations. https://www.reuters.com/business/energy/eu-parliament-committee-supports-quicker-phase-out-russian-gas-2025-10-16/
2025-10-16 11:21
Oct 16 - What matters in U.S. and global markets today By Mike Dolan , opens new tab, Editor-At-Large, Finance and Markets Sign up here. A combination of ongoing optimism over the AI boom, impressive U.S. bank earnings and an upturn in U.S. business surveys all boosted world stock markets despite U.S.-China trade tensions and the U.S. government shutdown. After Dutch chip equipment giant ASML's beat on Wednesday, Taiwan's TSMC forecast fourth-quarter revenue up by as much as 24% on Thursday and said "the AI megatrend is strengthening". The updates follow a flurry of huge deals between AI firms and chipmakers in the past month, notably by OpenAI with Nvidia, Advanced Micro Devices and Broadcom to build $1 trillion or more in data center capacity. An investment consortium including BlackRock, Microsoft and Nvidia said on Wednesday it will buy one of the world's biggest data center operators in a $40 billion deal. The tech optimism comes after string of upbeat results from U.S. banks this week, with Morgan Stanley and Bank of America shares gaining more than 4% each on Wednesday and the S&P500 index advancing 0.4%. Stock futures were higher again ahead of today's open, with European stocks rising too - led by a 9% surge in the world's largest packaged food firm Nestle on its latest results and big job-cutting plan. Even as Federal Reserve officials continue to sound dovish about further easing and estimates of the economic cost of the government shutdown emerge, the stock market optimism was underlined by an unexpected upturn in the New York Fed's latest business survey for October. Treasury yields held steady and the dollar weakened, with more hawkish soundings from the Bank of Japan lifting the yen despite the political hiatus in Tokyo. There was little sign of a breakthrough in the latest trade row between Washington and Beijing. French Prime Minister Sebastien Lecornu survived the first of two no-confidence votes in parliament, after winning crucial backing from the Socialist Party thanks to his pledge to suspend President Emmanuel Macron's contested pension reform. French stocks and the euro were higher. Gold continued to set new record highs. In today's column, I discuss why a dovish Fed and talk of an early end to quantitative tightening don't jibe with the signals coming from banks and why this risks exacerbating already loose financial conditions. Today's Market Minute * TSMC 2330.TW, the world's biggest producer of advanced AI chips, forecast fourth-quarter revenue up by as much as 24% as it rides an AI boom that saw it post its sixth consecutive quarter of double-digit profit growth, beating estimates. * Chinese state media on Thursday issued a seven-point rebuttal to U.S. calls for Beijing to wind back its rare earth controls, as both sides struggle to move beyond a volley of barbs and accusations of blindsiding the other. * The two-week-old federal government shutdown may cost the U.S. economy as much as $15 billion a week in lost output, a Treasury official said late on Wednesday, correcting an earlier statement from Treasury Secretary Scott Bessent that put the cost at up to $15 billion per day. * U.S. President Donald Trump said on Wednesday that Indian Prime Minister Narendra Modi has pledged to stop buying oil from Russia, and Trump said he would next try to get China to do the same as Washington intensifies efforts to cut off Moscow’s energy revenues. * The International Energy Agency continues to forecast a significant supply glut in the oil market, but uncertainty over the whereabouts of almost 1.5 million barrels per day of crude oil is throwing this projection into doubt. Read the latest from ROI energy columnist Ron Bousso. * After years-long beat-downs, several U.S.-listed clean energy stocks are on a tear and are handily outperforming most established energy majors despite U.S. President Donald Trump's policy push away from clean energy since retaking office, writes ROI global energy transition columnist Gavin Maguire. Chart of the day China's economy likely grew at its weakest pace in a year in the third quarter, with the slowdown set to deepen and threaten the official growth target, a Reuters poll showed, raising pressure for fresh stimulus as a trade war with the U.S. saps confidence. Today's events to watch * Philadelphia Federal Reserve's October business survey (8:30 AM EDT) NAHB October housing market survey (10:00 AM EDT) * Federal Reserve Board Governors Christopher Waller, Stephen Miran and Michael Barr and Fed Vice Chair Michelle Bowman all speak; Minneapolis Fed President Neel Kashkari and Richmond Fed boss Thomas Barkin also speak; Bank of Canada Governor Tiff Macklem speaks * International Monetary Fund and World Bank meetings in Washington, with G20 finance chiefs meeting on the sidelines. Speakers include European Central Bank President Christine Lagarde and ECB chief economist Philip Lane * U.S. corporate earnings: Bank of New York Mellon, M&T Bank, Travelers, US Bancorp, Charles Schwab, Interactive Brokers, Snap-On, Marsh & McLennan, CSX, KeyCorp 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-2025-10-16/
2025-10-16 11:07
MUMBAI, Oct 16 (Reuters) - Gold smuggling into India has spiked ahead of key festivals, government and industry officials told Reuters, in response to record-high prices and a supply crunch. Smuggling of gold into the world's second biggest buyer of the precious metal had fallen after the government slashed import taxes on it to 6% from 15% last year. Sign up here. However, Customs and Directorate of Revenue Intelligence (DRI) officials said smuggling has increased in recent weeks, with several attempts foiled at several Indian airports. Bringing gold into India and liquidating it used to be time-consuming and risky, but with strong festival demand and limited supply smugglers can now convert it in just a few hours, said a Chennai-based bullion dealer. Indians will celebrate the Dhanteras and Diwali festivals this month, occasions when buying gold is considered auspicious and among the busiest days for purchases of the precious metal. Gold prices in India hit a record 128,395 rupees per 10 grams on Thursday, marking a 67% rise so far this year. At this price smuggling a kilogram of gold is very lucrative for grey market operators, with margins exceeding 1.15 million rupees from dodging the 6% import duty and a 3% local sales tax "As gold prices keep climbing, smugglers are making bigger bucks. The payoff is now super tempting for them," said a Mumbai-based senior bullion dealer, who declined to be named. After import duties were cut in July, the margin for smugglers had fallen to 630,000 rupees per kilogram. Investors are now chasing gold, creating supply tightness and pushing up premiums, the bullion dealer said. Meanwhile, banks are unable to meet the full demand and are charging very high premiums on the available stock, said a Kolkata-based jeweller. Indian dealers were this week quoting a premium of up to $25 per ounce over official domestic prices, the highest in more than a decade. In the 2024/25 fiscal year ended in March, government agencies registered 3,005 cases of gold smuggling and seized 2.6 metric tons of the metal. https://www.reuters.com/world/india/gold-smuggling-surges-india-price-spikes-before-festivals-2025-10-16/
2025-10-16 11:06
Oct 16 (Reuters) - Insurance bellwether Travelers Companies (TRV.N) , opens new tab reported a profit surge in the third quarter on Thursday, helped by lower catastrophe losses, stronger underwriting fees and higher investment returns. Resilient consumer spending, despite higher borrowing costs, has helped sustain insurance demand, as businesses and households continue to prioritize protection against financial risks, accidents, property damage and natural disasters. Sign up here. Travelers' results often serve as a bellwether for the property and casualty insurance sector, reflecting broader industry trends in underwriting, pricing and catastrophe losses. The New York-based company's core income climbed to $1.87 billion, or $8.14 per share, in the three months ended September 30. That compares with $1.22 billion, or $5.24 per share, a year earlier. Net written premiums, the total value of policies sold after accounting for reinsurance, rose 1% in the quarter to $11.47 billion, led by growth in business insurance. Catastrophe losses came in at $402 million on a pre-tax basis, compared with $939 million a year earlier. The 2025 Atlantic hurricane season marks the first time in a decade when no hurricanes had made landfall in the United States through the end of September, according to AccuWeather. , opens new tab The absence of major catastrophes can offer a tailwind to insurers, as losses from hurricanes, wildfires and severe storms - a key swing factor for the industry - often sharply affect quarterly earnings despite their efforts to price in risks and share them through reinsurance. Travelers' underlying combined ratio came in at 83.9% in the quarter. A ratio below 100 indicates that the insurer collected more in premiums than it paid out in claims and expenses. The company posted an underwriting income of $1.38 billion on a pre-tax basis, which more than doubled from a year earlier. Net investment income, which comes from bonds, stocks and other low-risk financial assets, rose 14.3% to $1.03 billion. https://www.reuters.com/legal/litigation/insurer-travelers-profit-jumps-lower-catastrophe-losses-stronger-underwriting-2025-10-16/
2025-10-16 09:58
Oct 16 (Reuters) - Sterling climbed on Thursday to its highest level in more than a week against the dollar, as expectations for a more dovish Federal Reserve outweighed concerns about the UK economy and next month’s budget. Meanwhile, growing optimism in France that Prime Minister Sebastien Lecornu could survive a no-confidence vote helped lift the euro, putting it on track for a second straight gain against the pound. Sign up here. The British currency barely moved after data showed that the economy grew by 0.1% in August after dipping by 0.1% in July. Sterling was up 0.3% versus the greenback at $1.3438, after hitting $1.3443, its highest since October 7. US DOLLAR ON TRACK FOR ANOTHER LOSS The U.S. dollar was on track for a third straight daily loss against the euro while edging up versus the yen on Thursday, as concerns over U.S.-China tensions and dovish remarks from Federal Reserve officials continued to weigh on sentiment. The euro posted strong gains earlier this week as investors began positioning for a potentially earlier-than-expected rate cut by the Bank of England, while two-year gilt yields dropped sharply. The single currency dropped 0.18% to 86.73 pence . Short-dated UK government bond yields held steady around 3.88% on Thursday, after falling more than 15 basis points earlier in the week. The move followed data showing a slowdown in wage growth, a key metric the Bank of England is watching as it weighs the timing of its next rate cut. Bank of England policymaker Alan Taylor said on Tuesday that he saw an increasingly likely risk of a "bumpy landing" for Britain's economy with inflation falling too low. Economists, however, remain sceptical about a BoE rate cut this year. "Despite persistent growth concerns, still-elevated earnings growth and the prospect of headline inflation rising to 4% in September are likely to rule out a further interest rate cut this year," said Raj Badiani, economics director at S&P Global Market Intelligence. "The first rate cut is expected to occur in February 2026 and the Bank rate to stand at 3.25% at the end of next year," he added. Traders are pricing in a 44% chance of a 25 basis-point rate cut by the Bank of England in December, with full expectations for easing by March 2026. Markets also see cumulative cuts totalling 53 basis points by the end of 2026. https://www.reuters.com/world/uk/sterling-hits-highest-over-week-vs-dollar-monetary-policy-focus-2025-10-16/
2025-10-16 09:58
Oct 16 (Reuters) - Crypto heavyweight Kraken said on Thursday it has acquired futures exchange Small Exchange from IG Group for $100 million, paving the way to launch a fully U.S.-based derivatives suite. The cryptocurrency sector is maturing as digital assets gain broader acceptance and traditional financial firms increasingly engage through regulated products such as futures, options and tokenized securities. Sign up here. Small Exchange is a U.S. Commodity Futures Trading Commission-licensed designated contract market, giving Kraken a regulated venue to offer futures and options to both retail and institutional clients. "Under CFTC oversight, Kraken can now integrate clearing, risk and matching into one environment that meets the same standards as the largest exchanges in the world," Arjun Sethi, co-CEO of Kraken, said in a statement. Once the preserve of banks and brokers, the derivatives market is drawing digital asset firms looking for liquidity and risk management. Analysts say adoption is likely to accelerate as more institutional and traditional financial players enter the digital asset space. "Digital asset firms are no longer content being sideshow players. They aim to wrest seats in the core capital markets ecosystem," said Michael Ashley Schulman, partner and CIO at Running Point Capital Advisors. The derivatives market is likely to pull closer together, with big exchanges and fintech firms first testing offerings like tokenized futures and hybrid products at the edges, then rolling them out more widely, he added. Crypto-linked futures and options have been among the fastest-growing segments as investors seek to manage risk. "By securing the necessary licensing and infrastructure today, Kraken is laying the groundwork for institutional-grade markets as crypto matures," the company said. The deal comes as a more crypto-friendly regulatory tone under U.S. President Donald Trump encourages digital asset firms to expand in the United States with promises of clearer rules. Earlier this year, Kraken agreed to buy retail futures trading platform NinjaTrader for $1.5 billion , opens new tab. https://www.reuters.com/legal/government/kraken-signs-100-million-deal-small-exchange-bulk-up-us-derivatives-business-2025-10-16/
