2025-10-10 19:22

Canadian dollar gains 0.1% against the greenback Touches a six-month low at 1.4034 Canada adds 60,400 jobs in September Canada-U.S. 10-year spread narrows 5.9 basis points TORONTO, Oct 10 (Reuters) - The Canadian dollar rose against its U.S. counterpart on Friday as stronger-than-expected domestic jobs data reduced bets on another Bank of Canada interest rate cut this month, but the move was limited as oil prices fell. The loonie was trading 0.1% higher at 1.40 per U.S. dollar, or 71.43 U.S. cents, after touching its weakest level since April 10 at 1.4034. For the week, the currency was down 0.4%, its third straight weekly loss. Sign up here. Canada's economy added 60,400 jobs in September, almost entirely reversing losses of the previous month, while the unemployment rate held steady at 7.1%. Economists had forecast a 5,000 jobs gain. "Overall, we would definitely characterize this as a solid and encouraging report," said Doug Porter, chief economist at BMO Capital Markets. "We've been leaning to a hold in late October. This somewhat helps that story but it's a close call." Investors see a roughly 50% chance the BoC lowers interest rates at its next policy decision on October 29, down from 72% before the data. The central bank eased its benchmark rate by a quarter of a percentage point last month to 2.50%, its first cut since March, supporting an economy buffeted by trade uncertainty. The price of oil , one of Canada's major exports, settled 4.2% lower at $58.90 a barrel as confidence grew that the Gaza peace agreement between Israel and Hamas was taking hold. Canadian government bond yields eased across a flatter curve as Wall Street sold off sharply on increased trade tensions between the U.S. and China. The 10-year was down 4.3 basis points at 3.169%, while the gap between it and the U.S. equivalent narrowed by 5.9 basis points to about 88 basis points in favor of the U.S. note. That was the smallest gap since September 16. The bond market closed early ahead of the Thanksgiving Day holiday on Monday. https://www.reuters.com/legal/litigation/canadian-dollar-rebounds-six-month-low-jobs-gain-2025-10-10/

2025-10-10 19:11

Trump administration begins layoffs amid government shutdown Layoffs hit Treasury, HHS, Commerce, Education, Homeland Security Federal judge to hear union lawsuit against layoffs during shutdown More than 4,200 workers said to be affected WASHINGTON, Oct 10 (Reuters) - President Donald Trump on Friday blamed Democrats for his decision to lay off thousands of workers across the U.S. government as he followed through on his threat to cut the federal workforce during the government shutdown. Job cuts were under way at the Treasury Department, the U.S. health agency, the Internal Revenue Service and the departments of education, commerce, and Homeland Security's cybersecurity division, spokespeople said, but the total extent of the layoffs was not immediately clear. Sign up here. Roughly 300,000 federal civilian workers had already been set to leave their jobs this year due to a downsizing campaign initiated earlier this year by Trump. "They started this thing," Trump told reporters during an event in the Oval Office, calling the job cuts "Democrat-oriented." Trump's Republicans hold majorities in both chambers of Congress, but need Democratic votes in the U.S. Senate to pass any measure that would fund the government. Democrats are holding out for an extension of health-insurance subsidies, arguing health costs will increase dramatically for many of the 24 million Americans who get their coverage through the Affordable Care Act. Trump has repeatedly threatened to fire federal workers during the shutdown standoff, in its 10th day on Friday, and has suggested his administration will aim primarily at parts of the government championed by Democrats. Trump has also ordered the freezing of at least $28 billion in infrastructure funds for New York, California and Illinois - all home to sizable populations of Democratic voters and critics of the administration. The Justice Department said in a court filing more than 4,200 federal employees had gotten layoff notices at seven agencies, including more than 1,400 at the Treasury Department and at least 1,100 at the Department of Health and Human Services. DEMOCRATS SAY THEY WON'T RELENT Democrats said they will not cave to Trump's pressure tactics. "Until Republicans get serious, they own this - every job lost, every family hurt, every service gutted is because of their decisions," Senate Democratic Leader Chuck Schumer said. Labor unions representing federal workers have sued to stop the layoffs, saying they would be illegal during a shutdown. The administration said in a Friday court filing that the unions' request should be denied because they lack the legal right to sue over federal personnel decisions. A federal judge is due to hear the case on October 15. The government is required by law to give workers 60 days' notice ahead of any layoffs, though that can be shortened to 30 days. Some Republicans objected to the layoffs, including Senator Susan Collins, the chair of the Senate Appropriations Committee. "Regardless of whether federal employees have been working without pay or have been furloughed, their work is incredibly important to serving the public," Collins said in a statement. TARGETING FURLOUGHED WORKERS Earlier in the day, White House budget director Russell Vought wrote on social media that: "The RIFs had begun," referring to so-called reductions in force. A spokesperson for the budget office characterized the cuts as "substantial," without offering further details. The announcement came on the same day that many federal workers were due to get reduced paychecks that do not include any pay for the days since the shutdown began. Hundreds of thousands have been ordered not to report to work, while others have been ordered to keep working without pay. The nation's 2 million active-duty troops will miss their October 15 paycheck entirely if the shutdown is not resolved before then. Employees across multiple divisions of the Department of Health and Human Services have received layoff notices, communications director Andrew Nixon said. The 78,000 workers at the sprawling agency monitor disease outbreaks, fund medical research, and perform a wide range of other health-related duties. Nixon said the layoffs were targeted at agency staff who have been ordered not to work, but did not provide further details. Roughly 41% of agency staff have been furloughed. Layoffs have also begun at the Treasury Department, according to a spokesperson who requested anonymity. A labor union official, Thomas Huddleston of the American Federation of Government Employees, said in a court filing he had been told Treasury was preparing 1,300 layoff notices. Those layoffs could hit the tax-collecting Internal Revenue Service, which has been targeted for steep job cuts this year. Some 46% of the agency's 78,000 employees were furloughed on Wednesday. Layoffs have also begun at the Department of Housing and Urban Development, the union said. Officials also confirmed job cuts at the Education Department, which Trump has vowed to shutter completely, and the Commerce Department, which handles weather forecasting, economic data reports, and other tasks. Other media outlets reported layoffs at the Environmental Protection Agency, the Department of Energy and the Department of Interior. Spokespeople at those agencies did not immediately respond to requests for comment. The Department of Homeland Security said layoffs were taking place at the Cybersecurity and Infrastructure Security Agency, which incurred Trump's wrath after the 2020 election when its director said there was no evidence voting systems were compromised. Trump falsely claims that he lost that election to Democrat Joe Biden due to voter fraud. The Department of Transportation and the Federal Aviation Administration are not affected, according to a source familiar with the situation. https://www.reuters.com/world/us/us-government-workforce-cuts-have-begun-omb-chief-says-2025-10-10/

2025-10-10 19:05

Creditors seek compensation for defaults, expropriations Gold Reserve says it is seeking 'full transparency' Company alleges conflicts of interest HOUSTON, Oct 10 (Reuters) - Toronto-listed Gold Reserve (GRZ.V) , opens new tab said on Friday it has filed motions to disqualify a court officer and the judge overseeing an auction of shares in the parent of Venezuela-owned Citgo Petroleum, as well as two firms advising the Delaware court. The miner has been trying to prevent the court from declaring a $5.9 billion bid by rival Amber Energy, an affiliate of hedge fund Elliott Investment Management, as the auction's winner since its own $7.9 billion bid was not recommended in August. Sign up here. Gold Reserve is one of 15 creditors lining up to cash proceeds from the auction of shares in PDV Holding, a unit of Venezuelan state oil company PDVSA, as compensation for debt defaults and expropriations in Venezuela. GOLD RESERVE ALLEGES CONFLICTS OF INTEREST Gold Reserve has also requested a temporary stay of all decisions concerning any bids submitted in the sale process pending resolution of its disqualification motion. "Gold Reserve is seeking full transparency on these issues for its shareholders," it said in a release. The company is seeking to disqualify the Delaware judge overseeing the case, Leonard Stark, as well as court officer Robert Pincus, who switched his recommendation of the auction's winner to Elliott's Amber from Gold Reserve. Reuters could not immediately reach Stark for comment. A counsel for Pincus did not immediately respond to a request for comment. Lawyers representing Venezuela had requested in September the suspension of an important sale hearing due to an alleged conflict of interest involving advising firm Weil, Gotshal & Manges. But Stark denied the motion. Gold Reserve is now requesting Weil be disqualified over an allegation it had been representing Elliott while the Citgo sale process was ongoing. The miner also said that Weil and Evercore (EVR.N) , opens new tab, which is helping the court evaluate the bids, have ongoing relationships with some bondholders that could receive auction proceeds under Elliott's bid. Weil and Evercore did not immediately reply to requests for comment. The motions were filed under seal on Thursday, with the Venezuelan parties also filing motions to disqualify Pincus, Weil and Evercore. Judge Stark has set a court hearing for October 21 to listen to the parties over the conflicts that have emerged since Pincus switched his recommendation. He is expected to issue a final ruling on the winner after that. https://www.reuters.com/legal/legalindustry/gold-reserve-moves-disqualify-judge-advisers-citgo-parent-auction-2025-10-10/

2025-10-10 18:48

China to impose extra port fees on US ships from October 14 US to start imposing port fees on Chinese ships on same day US-China tensions have risen since September BEIJING/LOS ANGELES, Oct 10 (Reuters) - China will slap port fees on U.S.-owned, operated, built, or flagged vessels on Tuesday as a countermeasure to U.S. port fees on China-linked ships starting the same day, China's transport ministry said on Friday. Later in the day, U.S. President Donald Trump said he was raising tariffs on Chinese exports to the U.S. to 100% and imposing export controls on critical software in a reprisal to export limits by China on rare earth minerals. Sign up here. There are relatively few U.S.-built or U.S.-flagged vessels conducting international trade, but China will ensnare more ships by applying levies to companies with 25% or more of their shares or board seats held by U.S.-domiciled investment funds, analysts said. "This casts a wide net and could affect many public shipping companies with a listing on U.S. stock exchanges," said Erik Broekhuizen, a marine research and consulting manager at ship brokering firm Poten & Partners. "The potential impact is significant." On Tuesday, ships built in China - or operated or owned by Chinese entities - will also need to pay a fee at their first port of call in the United States. SOME VESSELS TO PAY BOTH CHINA, U.S. FEES U.S.-based shipping company Matson (MATX.N) , opens new tab told customers it is subject to the new China port fees and has no plans to change its service schedule. Also likely affected are CMA-CGM's U.S.-based American President Lines and Israel-based Zim (2SV.F) , opens new tab, which appears to have more than 25% of its shares owned by U.S. entities, Lars Jensen, CEO of container shipping-focused consultancy Vespucci Maritime, said on LinkedIn. The fees in both China and the U.S. will apply to 100 vessels owned by Poseidon's Seaspan and chartered by container lines, said Jensen. Maersk Line Limited (MAERSKb.CO) , opens new tab, APL, Zim and Seaspan did not immediately respond to requests for comment on the fees. Oil tanker operators are mostly based outside the United States, but they may get stung by China's port fees because they are listed in the U.S., analysts said. For example, Scorpio Tankers (STNG.N) , opens new tab has the industry's largest and youngest fleet and is U.S.-listed. It did not immediately respond to a request for comment. The Chinese port fees "have thrown the tanker market in turmoil," Broekhuizen said in a client note, adding many vessels that could be affected are already on their way to China. Nearly 10% of the very large crude carrier fleet, and 13% of the Suezmax, Afra and LR2 fleet would be affected, according to an analysis by ship broker and fleet data provider Fearnleys. An analysis by Vortexa showed 43 liquefied petroleum gas-carrying super tankers, or 10% of the global fleet, will be affected by China's port fees, said Samantha Hartke, who heads Americas analysis for the energy research firm. Vessels owned or operated by a Chinese entity will face a flat fee of $50 per net tonnage per voyage to the U.S. China-owned carrier COSCO (601919.SS) , opens new tab, including its OOCL fleet, is the most exposed with fees of around $2 billion in 2026, analysts said. COSCO did not immediately comment. CHINA CALLS U.S. FEES DISCRIMINATORY The U.S. fees on China-linked vessels, following a probe by the U.S. Trade Representative, are part of a broader U.S. effort , opens new tab to revive domestic shipbuilding and blunt China's naval and commercial shipping power. "It is clearly discriminatory and severely damages the legitimate interests of China's shipping industry, seriously disrupts the stability of the global supply chain, and seriously undermines the international economic and trade order," the Chinese ministry said. The USTR's office did not respond to a request for comment. Over the past two decades, China has catapulted itself to the No. 1 position in the shipbuilding world, with its biggest shipyards handling both commercial and military projects. The fees announced by China, like those put in place by the U.S., "add further complexity and cost to the global network that keeps goods moving and economies connected, and risk harming their exporters, producers, and consumers at a time when global trade is already under pressure," said Joe Kramek, president and CEO of the World Shipping Association. RATES RISE OVER THREE YEARS For U.S.-linked vessels berthing at Chinese ports starting Tuesday, the rate will be 400 yuan ($56.13) per net metric ton, the Chinese transport ministry said. That will increase to 640 yuan ($89.81) from April 17, 2026, and to 880 yuan ($123.52) from April 17, 2027. For vessels calling at Chinese ports from April 17, 2028, the charge will be 1,120 yuan ($157.16) per net metric ton. Tensions between China and the United States have deepened since September, with the two superpowers struggling to move beyond their trade tariff truce - a 90-day pause from August 11 that ends around November 9. Retaliatory tariffs in the U.S.-China trade war this year have sharply curtailed Chinese imports of U.S. agriculture and energy products. ($1 = 7.1241 Chinese yuan renminbi) https://www.reuters.com/business/autos-transportation/china-hit-us-ships-with-additional-port-fees-october-14-2025-10-10/

2025-10-10 18:42

Waller says private data consistent in showing weak job market He says deep rate cuts a risk given potential for GDP to rebound Fed expected to cut rates by 25 basis points later this month WASHINGTON, Oct 10 (Reuters) - Federal Reserve Governor Christopher Waller said on Friday that private data shows the job market remains weak and buttresses the case for further interest rate cuts, but added the U.S. central bank need only move in "cautious" quarter-percentage-point steps as it evaluates the economy. The U.S. jobs report for September has been delayed by the ongoing federal government shutdown, but Waller said that private data reports, like the recent one from payroll processor ADP showing a contraction in employment last month, have been consistent in showing the job market losing steam. Sign up here. Alternate sources of information on the job market "are not really representative ... but they are all telling the same story. The labor market is weak," Waller said on CNBC's "Squawk Box" program. "We need to cut rates. But we need to be kind of cautious about it ... Do 25 (basis points), keep going, see how it goes." Waller, reportedly on an evolving short list of candidates to replace Fed Chair Jerome Powell next year, said his call for caution stemmed from the contrast between data that show economic growth may be strengthening after a modest first half of the year, and a job market that "is not tight in any way shape or form." "Something has got to give. Either the labor market rebounds to match the GDP growth, or ... GDP growth is going to pull back. Whichever way that goes, it's got to affect what you do with policy," Waller said. His view is aligned with the broad consensus at the Fed that rates will continue to fall this year, but contrasts with the call by new Fed Governor Stephen Miran for deep and immediate reductions in borrowing costs. "You adjust as you go, as the data comes in. If you went 75 (basis points) tomorrow, you'd have a bit of a problem if you had the wrong bet," Waller said. The Fed, which cut rates by a quarter of a percentage point last month, will hold its next policy meeting on October 28-29. Investors anticipate it will reduce rates by a quarter of a percentage point this month, following up with the same-sized reduction in borrowing costs at its final meeting of the year in December. Other policymakers in recent days have revived concerns about persistent inflation and said the Fed may not have much room to lower rates further without risking renewed price pressures. But if the job market is as weak as it seems, "you're not going to get the typical thing people are afraid of ... Prices go up. Workers demand higher wages. Those wages get passed through and you get these kind of wild price wage spirals," Waller said. "That's not happening." https://www.reuters.com/business/finance/waller-interview-fed-chair-went-great-2025-10-10/

2025-10-10 17:52

Group includes US, UK, Swiss, Japanese, Canadian lenders Banks seeking to find their way as stablecoin demand grows Announcement follows European bank initiative last month PARIS/LONDON Oct 10 (Reuters) - Ten major banks including Bank of America (BAC.N) , opens new tab, Deutsche Bank (DBKGn.DE) , opens new tab, Goldman Sachs (GS.N) , opens new tab and UBS (UBSG.S) , opens new tab are jointly exploring issuing a stablecoin, the latest sign of traditional finance seeking to get to grips with the growth of digital assets. The group of lenders, which includes Citi (C.N) , opens new tab, MUFG [RIC:RIC:MTFGTU.UL], Barclays (BARC.L) , opens new tab, TD Bank (TD.TO) , opens new tab, Santander (SAN.MC) , opens new tab and BNP Paribas (BNPP.PA) , opens new tab, will work together to explore creating blockchain-based assets pegged to G7 currencies, the banks said in a statement on Friday. Sign up here. The project, which is in its early stages, will explore whether there is value in issuing assets on public blockchains which are pegged 1:1 to real-world currencies - a type of cryptocurrency known as stablecoins. "The objective of the initiative is to explore whether a new industry-wide offering could bring the benefits of digital assets and enhance competition across the market, while ensuring full compliance with regulatory requirements and best practice risk management," the banks said. CRYPTO RALLY, TRUMP AID INTEREST IN STABLECOINS Various banks and other financial institutions have announced plans to look at launching stablecoins, as soaring crypto prices and U.S. President Donald Trump's support for the sector has sparked a revival of interest in the idea of using blockchain in the mainstream financial system. Regulators and financial stability authorities have expressed concern that stablecoins could facilitate the movement of funds outside regulated banking systems, potentially undermining the role of commercial banks in global payment flows. Bank of England Governor Andrew Bailey has warned UK banks against issuing their own stablecoins, while the European Central Bank President Christine Lagarde said in June that privately issued stablecoins posed risks for monetary policy and financial stability. So far stablecoins have been largely used for moving money between crypto markets, which remain a small part of wider financial markets. Nearly nine-tenths of stablecoin transactions are related to crypto trading while just 6% for actual payment of goods or services, BCG estimated in a report earlier this year. The market is dominated by the El Salvador-based Tether, which accounts for $179 billion of the $310 billion worth of stablecoins in circulation, according to CoinGecko. France's Societe Generale (SOGN.PA) , opens new tab, which was not included in the list, became the first major bank to issue a dollar-backed stablecoin through its digital asset subsidiary earlier this year. The token has not been widely adopted, with just $30.6 million in circulation. RIVAL CONSORTIUM OF BANKS LAUNCHING A EURO STABLECOIN A separate consortium of nine European banks including heavyweights ING (INGA.AS) , opens new tab and UniCredit (CRDI.MI) , opens new tab, said last month they were forming a new company to launch a euro-denominated stablecoin. Some bank bosses say they see greater promise in the tokenisation of financial assets, in which digital representations of assets such as deposits, stocks and bonds are created and stored on a blockchain. Citi's CEO said in July that tokenised deposits were probably more important than a stablecoin. Many such projects remain in the pilot phase and executives said last year that efforts to tokenise assets were moving more slowly than expected. https://www.reuters.com/business/finance/major-banks-explore-issuing-stablecoins-pegged-g7-currencies-2025-10-10/