2025-09-12 10:55

Villeroy says another rate cut entirely possible Rehn: downside risks not to be underestimated Kazaks singles out December meeting Kocher says too early to say if rate cuts over FRANKFURT, Sept 12 (Reuters) - European Central Bank policymakers were keeping their options open on Friday about possible future interest rate cuts, flagging an uncertain outlook for trade, energy prices and foreign exchange rates. The European Central Bank left interest rates unchanged on Thursday and maintained an upbeat view on growth and inflation, leading traders to cut their expectations for any further reductions in borrowing costs. Sign up here. But a number of policymakers speaking on Friday hinted that the debate was far from over even now that the ECB has halved its policy rate to 2% from 4% in the space of a year. "There is no predetermined path but another rate cut is entirely possible at the coming meetings," France's central bank governor Francois Villeroy de Galhau told TV station BFM Business. Finland's Olli Rehn -- who like Villeroy is often among the ECB's doves, as policymakers who favour lower rates are known -- also said downside risks to inflation that stem from cheaper energy and a stronger euro should not be underestimated. The ECB's latest projections, published on Thursday, see inflation falling from around 2% currently to 1.7% next year and 1.9% in 2027. Latvian central bank governor Martins Kazaks singled out the ECB's December meeting, when those projections will be updated, as "rich" in information to determine whether inflation was straying from the bank's 2% target. He warned of risks such as a possible delay to the European Union's new carbon trading system, which adds some 0.3 percentage points to the ECB's inflation projections, potentially "deflationary" Chinese imports and a stronger euro. Austria's new central bank governor Martin Kocher also said it was too early to say whether the ECB's rate-cutting cycle was over and the central bank would decide what to do at each meeting based on the available data. Money markets showed the ECB was unlikely to reduce borrowing costs any time soon, with only a slight chance of a further cut towards next summer. https://www.reuters.com/business/finance/ecb-policymakers-keep-rate-options-open-amid-uncertain-outlook-2025-09-12/

2025-09-12 10:49

BEIJING, Sept 12 (Reuters) - China is seeking public feedback on a proposal to make it easier to import and export gold and gold products by streamlining the licence system, its central bank said on Friday. The world's top gold consumer intends to expand the number of customs authorities that are eligible to manage the "Non-one-batch-one-licence" for gold products to 15 from 10 previously, People's Bank of China said in a statement , opens new tab. Sign up here. "Non-one-batch-one-licence" means that the same licence can be used for more than one customs clearance as long as this does not exceed the prescribed quantity, the central bank said. "The validity period of permit is extended and there is no limit on the number of times the licence could be used within effective period," it said. The "Non-one-batch-one-licence" will be valid for nine months, according to the document. Typically such licences expire in six months. Gold prices have staged a record-breaking rally this week driven by growing geopolitical uncertainty, heightened expectations of a U.S. interest rate cut this month and persistent central bank buying. Gold has climbed by 33% so far this year. "The new proposal is just to simplify some procedures to make it more convenient for gold imports, but it does not mean that imports will be on the rise afterwards," said an industry expert on condition of anonymity due to the sensitivity of the matter. "The central bank has the final say on the import volumes." https://www.reuters.com/markets/asia/china-seeks-feedback-plans-streamline-gold-import-rules-2025-09-12/

2025-09-12 10:37

Sept 12 (Reuters) - Futures tied to Canada's main stock index edged lower on Friday as investors paused after two weeks of record rallies and turned their focus to a potential interest-rate cut by the Bank of Canada next week. Futures on the S&P/TSX index SXFcv1 fell 0.1% to 1,737 points by 06:26 a.m. ET (1026 GMT). Sign up here. The benchmark index on Thursday notched another record high as U.S. data supported bets on interest-rate cuts by the Federal Reserve. U.S. consumer prices rose more than expected in August, but a surge in first-time applications for unemployment aid last week kept the Fed on track to cut interest rates next Wednesday. The odds that the BoC will also resume its easing cycle on September 17 rose after data released last Friday showed that Canada's economy shed 65,500 jobs in August, while the unemployment rate climbed to 7.1%. Additionally, Canadian Prime Minister Mark Carney's announcement of five major projects aimed at diversifying the economy and reducing reliance on the U.S., as tariffs take a toll, contributed to Thursday's gains. The projects will be eligible for fast-track approvals as part of a broader campaign. In commodities, gold prices rose and copper futures were headed for a weekly rise on Friday, while oil prices steadied. FOR CANADIAN MARKETS NEWS, CLICK ON CODES: TSX market report Canadian dollar and bonds report CA/ Reuters global stocks poll for Canada , Canadian markets directory https://www.reuters.com/markets/europe/tsx-futures-retreat-record-run-focus-next-weeks-rate-decision-2025-09-12/

2025-09-12 10:28

LONDON, Sept 12 (Reuters) - The British pound dropped against the dollar on Friday after data showed the economy had stagnated in July, although it was still set for its second weekly rise before a Bank of England policy meeting next week. UK gross domestic product remained unchanged in July after growing 0.4% in June, the Office for National Statistics said, as manufacturing output, which makes up 9% of the economy, dropped by 1.3% on the month. Sign up here. "These GDP numbers are very volatile but the trend is a little bit softer over the last few months than it was earlier in the year," said Dominic Bunning, head of G10 FX strategy at Nomura. "It's a relatively volatile series that isn't going to make the BoE concerned." The pound was down 0.2% against the dollar at $1.3553, but was still set for a 0.3% weekly rise. The BoE is widely expected to keep its benchmark Bank Rate unchanged on September 18, after a split decision to lower the rate to 4% in August. Investors instead were focusing on the central bank's plans to reduce its bond holdings, known as quantitative tightening, which are announced at the September meeting every year. The BoE has reduced its bond holdings by 100 billion pounds ($135.32 billion) over the past year and Governor Andrew Bailey said earlier this month that the future pace of QT was an "open decision". A BoE survey of investors last month showed a median expectation that the central bank will slow the pace over the next 12 months to 72 billion pounds. A reduction to 75 billion is "unlikely to rock the boat," ING analysts said in a research note. If the BoE were to keep the pace of bond sales unchanged, gilts could come under pressure, pushing yields higher, said Nomura's Bunning. "Generally speaking, big moves higher in gilt yields, particularly long-end ones, are associated more with sterling weakness than with sterling strength," Bunning said. "There is a bit of tail risk here for sterling." Against the euro , the pound fell 0.1% to 86.51 pence but remained within its recent range. ($1 = 0.7390 pounds) https://www.reuters.com/world/uk/sterling-slips-economy-stagnates-eyes-boe-2025-09-12/

2025-09-12 10:25

IEA expects oversupply to increase with OPEC+ output boost Prices supported by Chinese buying and war risks Brent and WTI benchmarks fell sharply in previous session Sept 12 (Reuters) - Oil prices steadied on Friday as concern about oversupply and weaker U.S. demand were offset by supply disruption risks from conflict in the Middle East and Ukraine. Brent crude futures rose 42 cents, or 0.6%, to $66.79 a barrel by 1020 GMT and U.S. West Texas Intermediate crude gained 31 cents, or 0.5%, to $62.68. Sign up here. The Brent and WTI benchmarks fell by 1.7% and 2% respectively on Thursday. "Brent crude is essentially flat on the week, but after a volatile ride ...(which) reflects the market's ongoing struggle to balance growing surplus risks against persistent geopolitical uncertainty and resilient refined product margins," SEB Research analyst Ole Hvalbye said in a note. A monthly report from the International Energy Agency on Thursday said that global oil supply would rise more rapidly than expected this year because of planned output increases by the OPEC+ group comprising the Organization of the Petroleum Exporting Countries and allies such as Russia. However, OPEC's own report later in the day made no change to its relatively high forecasts for oil demand growth this year and next, saying the global economy was maintaining a solid growth trend. While there is a risk of a tumble in oil prices, factors such as tightness in the distillates market, sustained buying from China to fill inventories and potential sanctions on Russia and secondary sanctions on its customers are keeping the market supported, said PVM Oil Associates analyst John Evans. A drone attack on Russia's northwestern port of Primorsk - one of the country's largest oil and fuel export terminals - set fire to a vessel and a pumping station on Friday, the regional governor said. On the supply side, India's largest private port operator, Adani Group, has banned tankers sanctioned by Western countries from entering all of its ports, three sources told Reuters and documents show, potentially curbing Russian oil supplies. India is the biggest buyer of Russian seaborne oil, mostly shipped on tankers that are under sanctions by the European Union, United States and Britain. https://www.reuters.com/business/energy/oil-prices-steady-oversupply-expectations-offset-risks-output-2025-09-12/

2025-09-12 10:25

HONG KONG/BEIJING, Sept 12 (Reuters) - China's top legislature on Friday passed a bill to strengthen the country's food safety law, improving regulatory oversight and imposing stricter penalties for violations, state broadcaster China Central Television (CCTV) reported. The amendment, which will come into effect on December 1, focuses on regulating the bulk road transportation of key liquid foods and infant formula liquid milk, CCTV said. Sign up here. The amended law stipulates a licensing system for operating bulk road transport of key liquid foods, and lays out the responsibilities of consignors, consignees and road transport operators. It places infant formula liquid milk under the same registration management as that for infant formula powder, requiring manufacturers to follow registered formulas and processes. Food safety has improved in China in recent years following a series of scandals but an incident in July drew widespread attention. More than 200 children were found to have abnormally high levels of lead in their blood in the northwestern province of Gansu, after consuming kindergarten food which was found to have lead inside. Other scandals have included the 2008 discovery of toxic infant milk, which undermined public trust and consumer confidence. China's food safety law was first initiated in 2009 before an overhaul in 2015. It has since been amended in 2018 and 2021. https://www.reuters.com/business/healthcare-pharmaceuticals/china-passes-bill-improve-food-safety-2025-09-12/