2025-10-09 01:59

TOKYO, Oct 9 (Reuters) - The yen's current weakness benefits the economy and the hit to households from rising import costs can be offset by aggressive fiscal spending, said Takuji Aida, an economist advising the policy circle of Japan's likely new premier Sanae Takaichi. In an interview with Reuters, Aida brushed off concern that aggressive spending could further weaken the yen, which in turn would push up import costs, potentially accelerate inflation and weigh on consumption. Sign up here. "We've developed a defeatist mindset, thinking that a weaker yen is bad. That's a major mistake," Aida, chief Japan economist at Credit Agricole, said on Wednesday. The yen's current depreciation is beneficial, as it coincides with rising stock prices and growing investor confidence in Japan, he said, adding that burdens from rising import costs could be eased by proactive fiscal policy. The Japanese currency's sharp appreciation after the burst of an asset-inflated bubble prompted companies to cut or shift overseas jobs and investment, Aida said. "At 140 or 150 yen to the dollar, it becomes viable to manufacture goods domestically. This exchange rate level is helping drive the capital investment cycle upward and also serves as a buffer against U.S. tariffs," said Aida, who advises a group of reflationist-minded ruling party lawmakers. Takaichi's economic platform strongly reflects the group's policy principles advocating aggressive government spending to revitalise the economy. On monetary policy, Aida said the BOJ is likely to keep interest rates steady until 2027 after one more hike possibly by early next year. "Obviously, the BOJ has already set itself on a path toward tightening, so it will likely raise the policy rate to 0.75% by January," he said. The BOJ will then pause to support the government's spending plans and resume a gradual tightening in 2027, Aida said. "In 2027, the effects of (Takaichi's) proactive fiscal policy will start to kick in, and we'll see a clear expansion in domestic demand," he said. "Inflation is then likely to pick up in line with domestic demand, prompting the BOJ to begin small, incremental rate hikes." The BOJ ended a decade-long, massive stimulus last year and raised interest rates to 0.5% in January on the view Japan was on the cusp of durably achieving its 2% inflation target. Governor Kazuo Ueda has signaled the BOJ's readiness to keep raising interest rates if economic and price developments move in line with its forecasts. https://www.reuters.com/world/asia-pacific/adviser-takaichis-policy-circle-says-weak-yen-is-good-economy-2025-10-09/

2025-10-09 00:38

Wakatabe endorses BOJ's cautious policy normalisation BOJ can raise rates if economy improves, Wakatabe says BOJ to struggle justifying another rate hike this year Wakatabe sees BOJ dropping no signs on rate-hike timing TOKYO, Oct 9 (Reuters) - The Bank of Japan can raise interest rates if prospects of durably meeting its 2% inflation target improve, but would struggle to justify doing so this year given weak signs in the economy, former deputy governor Masazumi Wakatabe told Reuters. Wakatabe, who is known as a fiscal and monetary dove, endorsed the central bank's cautious policy normalisation and said more rate hikes could come if the economy improves. Sign up here. He noted the economy was "at a historical turning point" with companies raising prices on a regular basis in a departure from their past caution over doing so. "If the economy is improving steadily, and the likelihood of sustainably and durably achieving 2% inflation is heightening, an interest rate hike would obviously be on the table," he said in an interview on Wednesday. But Wakatabe warned of recent weak signs in the economy that suggest underlying inflation, which has been flat around 1.6%, may not accelerate much. Private economists also project Japan's economy to contract in the third quarter, Wakatabe added. "Recent data shows Japan's labour market stagnating. If Japan's third-quarter GDP data prove weak, it would be hard to justify raising rates in December," he said. The government will release third-quarter gross domestic product (GDP) data on November 17. After a meeting slated for October 29-30, the BOJ board holds its final policy-setting meeting for this year on December 18-19. An advocate of expansionary fiscal and monetary policy, Wakatabe is among academics with ties to Sanae Takaichi, who is on course to become next premier after her victory in a weekend ruling party leadership race. Upon winning the race, Takaichi made clear the government will take the lead in setting fiscal and monetary policy - and that her priority would be to reflate domestic demand. Wakatabe said the BOJ must coordinate closely with the government, but does not necessarily need to keep interest rates low solely for the purpose of financing government spending. "If inflation expectations rise and push up underlying inflation, the BOJ can raise interest rates. It needs to do so because otherwise, the economy will overheat," Wakatabe said. "On the other hand, the BOJ needs to keep the economy on a firm footing. It's about finding the right balance, looking at data. I think the BOJ understands this point." The yen slumped to an eight-month low against the dollar this week as markets saw Takaichi's win as reducing the chance of a near-term rate hike. "The BOJ hasn't committed to a set timing for raising rates and hasn't dropped any signals," Wakatabe said. "It's really dependent on data." Wakatabe served as deputy governor for five years through 2023, during which the BOJ maintained a massive stimulus deployed by former governor Haruhiko Kuroda in 2013. Under incumbent governor Kazuo Ueda, the BOJ exited Kuroda's stimulus last year and raised interest rates to 0.5% in January. Currently an economics professor at Japan's Waseda University, Wakatabe wrote a chapter on fiscal and monetary policy in a book Takaichi published last year. https://www.reuters.com/world/asia-pacific/boj-will-find-another-rate-hike-this-year-difficult-says-ex-deputy-governor-2025-10-09/

2025-10-09 00:26

Israel and Hamas agree to Gaza ceasefire, return of hostages Stalled peace talks in Ukraine underpin prices India-US trade talks progress US imposes sanctions on China refinery, others for Iran oil purchases HOUSTON, Oct 9 (Reuters) - Oil prices settled lower on Thursday after Israel and the Palestinian militant group Hamas signed an agreement to cease fire in Gaza. Brent crude futures closed down $1.03, or 1.6%, at $65.22 a barrel. U.S. West Texas Intermediate crude was down $1.04, or 1.7%, at $61.51. Sign up here. Israel and the Palestinian militant group Hamas signed an agreement on Thursday to cease fire and free Israeli hostages in exchange for Palestinian prisoners, in the first phase of U.S. President Donald Trump's to end the war in Gaza. Under the ceasefire deal, fighting will cease, Israel will partially withdraw from Gaza, and Hamas will free all remaining hostages it captured in the attack that precipitated the war, in exchange for hundreds of prisoners held by Israel. "Crude futures are in a corrective phase as the Israel/Hamas conflict looks to be ending," said Dennis Kissler, senior vice president of trading at BOK Financial. 'WIDE-RANGING' IMPLICATIONS FOR OIL MARKETS "The peace agreement is a major breakthrough in recent Middle Eastern history – its implications for oil markets could be wide-ranging, from the possibility of a decrease in the Houthis' attacks in the Red Sea to an increase in the likelihood of a nuclear deal with Iran..." Rystad Energy's Chief Economist Claudio Galimberti said in a note. The Organization of the Petroleum Exporting Countries and allies in OPEC+ agreed on Sunday to a November output hike that was smaller than market expectations, easing oversupply concerns. Prices had gained around 1% on Wednesday to reach a one-week high after investors viewed stalled progress on a Ukraine peace deal as a sign that sanctions against Russia, the world's second-largest oil exporter, would continue for some time. Democratic and Republican bills to fund the U.S. government and end a shutdown have not secured the votes needed for passage in the Senate. A prolonged shutdown could dampen the economy and hurt oil demand. Indian Prime Minister Narendra Modi said he spoke to U.S. President Donald Trump on Thursday, adding they "reviewed good progress achieved in trade negotiations" and agreed to stay in close touch over the coming weeks. Trump has imposed a on most exports from India, among the highest for any U.S. trading partner. The tariffs were on Indian goods from 25% over New Delhi's continued imports of Russian oil. The U.S. also imposed sanctions on about 100 individuals, entities and vessels, including a Chinese independent refinery and terminal, that helped Iran's oil and petrochemicals trade, the administration of President Donald Trump said on Thursday. https://www.reuters.com/business/energy/oil-falls-gaza-plan-fading-middle-east-risk-premium-2025-10-09/

2025-10-09 00:00

Tata faces new test as disagreement among trustees mount Tata Trusts controls 66% of Tata Sons, giving it immense powers Ministers meet Tata leadership to resolve matters, sources say NEW DELHI/MUMBAI, Oct 8 (Reuters) - Two senior Indian ministers have, in an uncommon intervention, urged Tata Group's charity arm to resolve internal boardroom disputes to ensure stability at the sprawling $180-billion business empire it controls, sources told Reuters on Wednesday. The discord within Tata Trusts, a year after the death of family patriarch Ratan Tata, has raised fears of a repeat of a bitter 2016 public spat between the charity and Tata Sons that tarnished the reputation of India's most storied group. Sign up here. Tata Trusts owns a 66% stake in Tata Sons, giving it power over major strategic decisions. Tata Sons, in turn, oversees 30 firms ranging from consumer goods, autos and airlines, including the likes of Jaguar Land Rover, Tata Consultancy Services (TCS.NS) , opens new tab, Tata Motors (TAMO.NS) , opens new tab and Air India. The disagreement within Tata Trusts in recent weeks concerns which of its trustees should sit on the Tata Sons board, the general business direction taken by the group and how to manage the planned exit of minority shareholder Shapoorji Pallonji, two industry sources familiar with the matter said. INDIAN GOVERNMENT ASKS TATAS TO RESOLVE ISSUES The two Indian ministers met with Tata Sons Chair N. Chandrasekaran and Tata Trusts head Noel Tata in New Delhi on Tuesday to discuss the matter and seek a swift resolution of the disputes, one of the industry sources and a government official said. Finance Minister Nirmala Sitharaman was one of the ministers present at the rare direct government intervention, those sources said. Indian media reported the other senior government official as Minister of Home Affairs Amit Shah. "The government wants them to resolve the issues and restore stability," said the government official familiar with Tuesday's discussions. The sources declined to be named as the matter is confidential. Tata Trusts and Tata Sons have not commented publicly on the matter, which has been widely reported in Indian media. Neither responded to Reuters' requests for comment. India's finance ministry and home affairs ministry did not respond to requests for comment. In the 2016 spat, Tata Sons chair Cyrus Mistry was unceremoniously ousted following disagreements with Tata Trusts, triggering legal battles. Mistry died in 2022 but his family's firm, Shapoorji Pallonji, still owns an 18% stake in Tata Sons. One of the main current disagreements among Tata Trusts' trustees concerns how Shapoorji's long-delayed plan to part ways with the Tatas will be executed and affect the conglomerate, one of the industry sources said. Shapoorji Pallonji did not respond to a Reuters request for comment. https://www.reuters.com/sustainability/society-equity/indian-government-seeks-resolution-dispute-tata-charity-arm-sources-say-2025-10-08/

2025-10-08 23:46

FAA faces staffing issues amid government shutdown Controllers, TSA officers working without pay during shutdown FAA staffing cut by 50% in some areas since shutdown began BALTIMORE, Oct 8 (Reuters) - The Federal Aviation Administration delayed flights for a third straight day on Wednesday at airports including Reagan Washington National and Newark Liberty International Airport as the agency continued to face higher-than-normal staffing shortages. There were nearly 3,000 flight delays by 5:30 p.m. ET (2130 GMT) after 10,000 delays in total on Monday and Tuesday with thousands tied to the FAA slowing flights because of air traffic controller absences at facilities across the country as the government shutdown reached its eighth day. Sign up here. Some flights at Reagan were being forced to hold in the air due to a slowdown in air traffic, the FAA said. "Historically, there's about 5% of delays that is attributed to staffing issues in our towers. Last couple days it has been 53%," U.S. Secretary of Transportation Sean Duffy said on Fox News' "Will Cain Show." "My message to the air traffic controllers who work for DOT is show up for work -- you have a job to do." Air traffic control staffing issues during this shutdown have emerged earlier than the last major halt to government funding in 2019, during U.S. President Donald Trump's first term, leading to unexpected shortages in cities around the country. "The bottom line is these controllers are stressed out, and they're rebelling on this shutdown because they may not get paid," Duffy said. Maryland Governor Wes Moore and congressional Democrats called for the shutdown to end at Baltimore-Washington International Airport on Wednesday, noting that air traffic controllers and Transportation Security Administration officers are working without pay. Moore, a Democrat, said President Trump "could not close a deal" to keep the government open. Representative Kwiesi Mfume, a Democrat, called for supplemental legislation that would continue to pay air traffic controllers during a shutdown. "People are beginning to worry now about flying and we should as a nation never get to that point," he said. In 2019, during a 35-day shutdown, the number of absences by controllers and TSA officers rose as workers missed paychecks, extending checkpoint wait times at some airports. Authorities were forced to slow air traffic in New York, which put pressure on lawmakers to quickly end the standoff. Some 13,000 air traffic controllers and about 50,000 Transportation Security Administration officers must still turn up for work during the government shutdown, but they are not being paid. Controllers are set to receive a partial paycheck on October 14 for work performed before the shutdown. "Our BWI workers are still here," Moore said. "They're doing it because they're patriots. They're doing it because they know that this work matters." Separately, Duffy said USDOT had secured $41 million to keep the Essential Air Service program funded into early November. Some carriers including Alaska Airlines (ALK.N) , opens new tab had vowed to continue government-subsided flights to rural or remote areas even after USDOT warned they might not get reimbursed starting next week. The U.S. has faced air traffic control shortages for more than a decade, and many controllers had been working mandatory overtime and six-day weeks even before the shutdown. The FAA is about 3,500 air traffic controllers short of targeted staffing levels. https://www.reuters.com/world/us/airlines-brace-third-day-flight-delays-shutdown-persists-2025-10-08/

2025-10-08 23:32

Oct 9 (Reuters) - Liontown Resources (LTR.AX) , opens new tab said on Thursday it amended its loan and spodumene supply agreements with Ford Motor (F.N) , opens new tab, aiming to bolster near-term liquidity and gain more flexibility in marketing output as production ramps up at its Kathleen Valley lithium project in Western Australia. Under the revised terms, Liontown said principal and interest payments due to Ford over fiscal 2026 would be deferred by 12 months; all other loan conditions remained unchanged. Sign up here. Shares of the battery minerals producer climbed 3.4% to A$1.065, their highest since mid-June 2024, outperforming the broader S&P/ASX 200 benchmark (.AXJO) , opens new tab, which rose 0.3% as of 2318 GMT. The company also halved the remaining spodumene concentrate volume to be delivered to Ford from 2027 onwards to 256,250 dry metric tons and said no deliveries would occur in 2027 and 2028. Liontown added that Ford has the option to waive its take-or-pay commitments for those remaining volumes. Amendments would allow Liontown to sell more product on the spot market or pursue new strategic partnerships, it said. The amended deal comes a week after Perth-headquartered Liontown said it would revise pricing terms with Tesla (TSLA.O) , opens new tab in their long-term offtake agreement as the miner sought broader exposure to lithium pricing benchmarks. https://www.reuters.com/business/autos-transportation/liontown-resources-amends-loan-supply-deals-with-ford-motor-shares-advance-2025-10-08/