2025-10-08 10:46

MUMBAI, Oct 8 (Reuters) - The regulator of India's Gujarat International Finance Tech (GIFT) City is in discussions with the country's central bank to allow domestic lenders to instantly settle forex transactions through the tax-neutral finance hub, the regulatory body's chairman said. The move would make forex transactions quicker and cheaper and ease settlement processes for foreign investors investing in India through GIFT City, which Prime Minister Narendra Modi is pitching as a finance hub to rival centres like Dubai and Singapore. Sign up here. On Tuesday, GIFT City launched a real-time foreign currency settlement system, with Standard Chartered's (STAN.L) , opens new tab India unit initially selected to handle U.S. dollar clearances. This facility is only for bank branches in GIFT City. The launch of the real-time system has speeded up settlement timelines to 30 seconds from nearly 24 hours earlier, K. Rajaraman, chairman of the International Financial Services Centres Authority, told Reuters in an interview late on Tuesday. The regulators are now in discussions to allow Indian banks to settle their forex transactions in real-time, which would give investors a wider suite of options and open up a new line of business for lenders. "In the next six-to-eight months, we plan to allow banks in India to settle their dollar transaction through this clearing system with due permissions from Reserve Bank of India," Rajaraman said. BOOSTING DERIVATIVE TRADES AT GIFT CITY Earlier this month, the National Stock Exchange of India announced the introduction of daily expiry contracts for GIFT Nifty, a dollar-denominated derivative of the Nifty 50 index traded at the finance hub. The move was in contrast to the tighter regulatory framework for domestic derivatives. India's markets regulator has recently tightened rules for equity derivatives, citing data that shows nearly 90% of retail investors incur losses. Rajaraman said risk management measures would be implemented to prevent any spillover from increased derivative activity in GIFT Nifty to the domestic markets. "This product is dollar-denominated and meant for institutional investors," he said. "Problem in Indian derivatives is due to resident retail investors trading in those instruments, a concern missing in GIFT City," Rajaraman said. https://www.reuters.com/sustainability/boards-policy-regulation/indias-gift-city-rbi-talks-enable-real-time-fx-settlement-by-domestic-banks-says-2025-10-08/

2025-10-08 09:53

Oct 8 (Reuters) - Sterling slipped against a strong dollar but rose versus the euro and the yen on Wednesday, while concerns over the British economy and next month's budget kept investors on edge. The common currency and the yen were on track for a third straight day of losses against the dollar on Wednesday, pressured by political turmoil in France and expectations of increased fiscal spending in Japan. Sign up here. On the British economic front, analysts expect modest growth for the rest of the year, while inflation is seen rising to 4% — double the Bank of England’s target — after data last week showed the economy lost momentum following a strong start to 2025. The British currency showed a quite muted reaction to recent data, but investors feared that potential tax hikes to meet fiscal rules in next month's budget could have a negative impact on the pound. Sterling was down 0.1% against the dollar at $1.3409. "Sterling will be a barometer of Rachel Reeves's ability to balance the need for fiscal prudence, economic growth and honouring political pledges," said Robert Farago, head of strategic asset allocation at Hargreaves Lansdown. "Today, the U.S. dollar is overvalued against sterling, the euro and the yen. But this is a minor ingredient in the recent weakness of the dollar, which has largely been driven by the significant shifts in U.S. policies," he added. Against the euro the pound rose 0.20% to 86.61 pence per euro, its highest level since September 16. It hit a fresh 15-month high versus the yen at 204.97, and was last up 0.50% at 204.85. BoE officials Huw Pill and Catherine Mann are speaking this week, with Pill due later on Wednesday and Mann on Thursday. Both backed the decision to hold rates at the September meeting. Global financial markets could tumble if investors' mood sours on the prospects for artificial intelligence or the independence of the U.S. Federal Reserve, the BoE warned on Wednesday. https://www.reuters.com/world/uk/sterling-rises-versus-euro-reaches-fresh-15-month-high-against-yen-2025-10-08/

2025-10-08 07:37

COPENHAGEN, Oct 8 (Reuters) - Denmark will cull 150,000 chickens after detecting an outbreak of the highly contagious H5N1 bird flu virus in a flock in the southeastern part of the country's Jutland peninsula, the Danish Veterinary and Food Administration said on Wednesday. The agency said in a statement the outbreak is the first in a Danish poultry flock since April when it lifted restrictions on poultry farming imposed in December 2024. Sign up here. It said in December owners of poultry and other captive birds must keep their animals indoors or under cover, citing an increased risk of infection. The Dutch government on Tuesday announced it would cull 71,000 chickens at a poultry farm in the northern part of the Netherlands following the detection of bird flu. https://www.reuters.com/business/healthcare-pharmaceuticals/denmark-cull-150000-chickens-after-bird-flu-outbreak-2025-10-08/

2025-10-08 07:36

Policy rate held at 1.50% after four cuts in the past year Growth outlook trimmed to 2.2% this year, 1.6% next year Central bank says ready to cut rates if outlook deteriorates Sees low risk of deflation Economists say more easing needed as economy sputters BANGKOK, Oct 8 (Reuters) - Thailand's central bank left its key interest rate steady on Wednesday, surprising markets which had expected another cut as the economy struggles with a strengthening baht , negative inflation and U.S. tariffs. But policymakers left the door open to more easing if the glum outlook for Southeast Asia's second-largest economy deteriorates further, and economists said they still expect two more rate cutes by the end of next year. Sign up here. "We got this one wrong, together with most forecasters, but we believe that a further easing in monetary policy in the near future remains a no-brainer, given the poor fundamental backdrop," said Miguel Chanco, chief emerging Asia economist at Pantheon Macroeconomics. The Bank of Thailand's monetary policy committee voted 5 to 2 to keep the one-day repurchase rate (THCBIR=ECI) , opens new tab steady at 1.50% at Wednesday's review, the first for new Governor Vitai Ratanakorn. The BOT has cut rates four times in the past year. "The transmission of previous policy rate cuts to the economy is ongoing," the central bank said in a statement. "We must preserve policy space for risks in the medium term", assistant governor Sakkapop Panyanukul told a news conference after the decision. "We'll cut rates if the outlook deteriorates". The rate hold would give the new governor time to settle into the role before another cut expected at the next meeting on December 17, said Kobsidthi Silpachai, head of Capital Markets Research at Kasikornbank. The BOT said it now expects the economy to grow 2.2% this year and 1.6% in 2026, slightly lower than previous forecasts of 2.3% and 1.7%, respectively. Last year's growth was 2.5%. "The economy in the second half of 2025 throughout 2026 is expected to slow down due to the impacts of U.S. trade policies," the central bank said. Only six of 26 economists in a Reuters poll had predicted rates would be kept steady on Wednesday. Nineteen economists had predicted a 25 basis-point cut, and one had forecast a 50 bps cut. EASING CYCLE LIKELY ISN'T OVER Both Pantheon Macroeconomics and Capital Economics said after the decision that they expect two more 25-bps rate cuts in this cycle, taking the terminal policy rate to 1.0% next year. The central bank cut its forecast for headline inflation this year to zero, from 0.5% previously. The inflation rate has been negative for the past six months, well below the central bank's target range of 1% to 3%, but the BOT says deflationary risks are low. The BOT said inflation was expected to be 0.5% in 2026, before it returns to the target range by early 2027. Thailand has lagged its regional peers as it struggles with U.S. tariffs, high household debt, weak consumption, and a strong currency. The central bank did upgrade its view on exports, forecasting a 10% rise this year versus its previous forecast of 4% seen in June, adding the impact of U.S. tariffs has been less than expected. But 2026 exports were expected to shrink by 1%. On Tuesday, Finance Minister Ekniti Nitithanprapas said the government would spend 44 billion baht ($1.35 billion) on a consumer subsidy program and will roll out other stimulus measures to try to lift growth above 2.2% this year. Prime Minister Anutin Charnvirakul's new government has a limited window to implement its measures, with the premier planning to dissolve parliament by the end of January with a general election to be held in March or early April. ($1 = 32.51 baht) https://www.reuters.com/world/asia-pacific/thai-central-bank-unexpectedly-holds-key-rate-150-2025-10-08/

2025-10-08 07:29

Oct 8 (Reuters) - European shares inched higher on Wednesday with banks and energy stocks leading early gains, though gains were kept in check by losses in automobile stocks following BMW's forecast cut and technology names amid U.S. calls for export bans. The pan-European STOXX 600 (.STOXX) , opens new tab was up 0.2% at 570.4 points by 0712 GMT. Local bourses were mixed, though the Italian benchmark (.FTMIB) , opens new tab outperformed with a 0.5% gain. Sign up here. Banks (.SX7P) , opens new tab were the biggest boost, up 0.7% with British lender Lloyds (LLOY.L) , opens new tab, France's Societe Generale (SOGN.PA) , opens new tab and Italy's BPER Banca (EMII.MI) , opens new tab leading gains. Heavyweight oil and gas stocks (.SXEP) , opens new tab added 0.4%, tracking higher oil prices. Germany's BMW (BMWG.DE) , opens new tab dropped 5.3% after the carmaker cut its 2025 earnings forecast due to changed U.S. tariff assumptions and weaker-than-expected growth in the Chinese market. The broader autos index (.SXAP) , opens new tab eased 1.5%, with rival Mercedes (MBGn.DE) , opens new tab also down 3.1%. Technology (.SX8P) , opens new tab fell 1.1%, with chip-related companies ASML (ASML.AS) , opens new tab and ASMI (ASMI.AS) , opens new tab leading declines after U.S. lawmakers called for broader bans on sales of chipmaking equipment to China. Investors will also focus on France, where President Emmanuel Macron is under mounting pressure to either resign or call a snap parliamentary election amid deepening political turmoil. French blue-chips (.FCHI) , opens new tab gained 0.2% early on. https://www.reuters.com/markets/europe/european-shares-rise-slightly-banks-energy-boost-tech-autos-curb-gains-2025-10-08/

2025-10-08 07:19

Silver hits record high, platinum climbs over 12-year peak Gold up about 54% so far this year Traders price in 25 bps Fed rate-cut this month Oct 8 (Reuters) - Gold surged past the $4,000 an ounce level for the first time on Wednesday, building on a record-breaking rally as broader geopolitical and economic uncertainty, as well as expectations of U.S. interest rate cuts, sent investors flocking to the safe-haven asset. Silver also climbed to a record high on Wednesday, latching on to gold's record streak as investors flocked to the metal. Sign up here. Spot gold was up 1.7% at $4,050.24 per ounce by 1345 PM ET (1745 GMT). U.S. gold futures for December delivery also settled 1.7% higher at $4,070.5. Silver gained 3.2% to $49.39 per ounce, after hitting its all-time high of $49.57. "Gold's strength reflects an extremely positive macroeconomic and geopolitical background for safe-haven assets, plus concerns over other traditional safe havens," said Matthew Piggott, director of gold and silver at Metals Focus. Gold, traditionally seen as a store of value during times of instability, is up 54% year-to-date, after gaining 27% in 2024. It is one of the best-performing assets of 2025, outpacing advances in global equity markets and bitcoin and losses for the U.S. dollar and crude oil. Silver was up 71% so far this year, benefiting from the same factors driving gold's rally as well as tightness in the spot market. "The silver market continues to tighten, with rising lease rates, as Comex stocks scale record highs and amid India's seasonal demand strength. The recent rally has been supported by hefty ETP inflows," said Suki Cooper, Global Head, Commodities Research at Standard Chartered Bank. The metals' rally has been propelled by a combination of factors, including expectations of U.S. interest rate cuts, mounting political and economic uncertainty, strong central bank buying, hefty inflows into ETFs and a weakening dollar. "With these factors persisting into 2026, we fail to see any catalyst for gold to meaningfully retrace at present. Therefore, we expect gold to continue to push up throughout the year to attempt a challenge of $5,000/oz," Piggott added. The U.S. government shutdown entered its eighth day on Wednesday, delaying the release of key economic data and forcing investors to rely on non-government sources to assess the timing and scope of Fed rate cuts. Markets are pricing in a 25-basis-point rate cut at the Fed's upcoming meeting, with a similar reduction expected in December. The Federal Reserve officials agreed at their policy meeting that risks to the U.S. job market had increased enough to warrant an interest rate cut, but many remained wary of high inflation, minutes of the September 16-17 session showed on Wednesday. Global crises, such as the Middle East conflict and the war in Ukraine, have stoked demand for bullion, while political turmoil in France and Japan added to the flight to gold. Globally, inflows into gold ETFs hit $64 billion year-to-date, according to data from the World Gold Council, with a record $17.3 billion in September alone. A "fear of missing out" is also boosting the rally, analysts said. On a technical basis, gold's Relative Strength Index (RSI) stands at 87, indicating the metal is overbought. HSBC on Wednesday raised its average silver price forecasts for 2025 to $38.56 per ounce and for 2026 to $44.50, citing expectations for high gold prices, renewed investor demand and anticipated volatile trading. The momentum seeped into other precious metals as well, with platinum gaining 3% to $1,666.47, its highest level since February 2013. Meanwhile, palladium climbed 8.4% to $1,449.69, marking a more than two-year peak. https://www.reuters.com/world/india/gold-vaults-over-4000-rush-safety-fed-easing-bets-2025-10-08/