2025-12-05 07:28
LONDON, Dec 5 (Reuters) - Britain's housing market slowed in November in both annual and monthly terms in the run-up to the government's budget, figures from mortgage lender Halifax showed on Friday. Halifax said house prices were flat in November, down from 0.5% growth in October. Sign up here. Compared to a year ago, house price growth slowed to 0.7% from an annual increase of 1.9% in October, the weakest rate since March 2024. The lender said the annual slowdown largely reflected the impact of stronger house price growth a year ago. "Annual growth has slowed to +0.7%, the weakest rate since March 2024, though this largely reflects the base effect of much stronger price growth this time last year," Amanda Bryden, head of mortgages at Halifax, said. "Even with the changes to Stamp Duty back in spring and some uncertainty ahead of the Autumn Budget, property values have remained steady." Some other measures of Britain's housing market have suggested a slowing in house price growth which has been attributed to caution among homebuyers ahead of finance minister Rachel Reeves' November 26 budget. Figures from rival mortgage lender Nationwide published on Tuesday showed that prices rose by 0.3% in November, and annual house price growth slowed to 1.8%. Bryden said affordability was the strongest since 2015, and expected property prices to grow gradually next year, supported by steady activity and interest rate cuts by the Bank of England. The BoE is widely expected to reduce borrowing costs by 25 basis points to 3.75% in December. https://www.reuters.com/world/uk/uk-house-prices-stagnate-november-halifax-says-2025-12-05/
2025-12-05 07:13
Traders price a near 90% chance on a Fed cut on December 10 US consumer sentiment improves in early December Yen edges up amid reports BOJ likely to hike this month Bitcoin slips for second straight session NEW YORK, Dec 5 (Reuters) - The U.S. dollar slipped on Friday but held within recent ranges against major currencies as traders awaited next week's Federal Reserve meeting, where policymakers are widely expected to cut interest rates. The dollar index , which measures the currency against six peers, was down 0.1% at 98.994, not far from Thursday's five-week low of 98.765. For the week, the index was down 0.5%. Sign up here. The euro was about flat at $1.16433, not far from Thursday's three-week high of $1.1681. Traders are pricing a nearly 90% chance of a Fed rate cut next week, and potentially two more reductions next year, LSEG data showed. "This week, some soft labor market data releases from alternative sources helped crystallize what still appears to be an overdone 90% probability of a cut next week," Antonio Ruggiero, FX & macro strategist at Convera, said. Morgan Stanley said on Friday it now expects the Fed to deliver a quarter-percentage point rate cut in December, joining peers JPMorgan and BofA Global Research, following dovish remarks from central bank policymakers. All three brokerages previously expected the Fed to hold rates steady in December. "The dollar also continues to look overvalued relative to major peers, with the softer tone therefore fully justified," Ruggiero said. Data on Friday that showed U.S. consumer sentiment improved in early December did little to boost the dollar. Separately, the Personal Consumption Expenditures (PCE) Price Index increased 0.3% in September after gaining 0.3% in August, the BEA said. Excluding the volatile food and energy components, the PCE Price Index gained 0.2% after climbing 0.2% in August, the report delayed by the recent government shutdown showed. Investors are also weighing the prospect of White House economic adviser Kevin Hassett taking over as Fed chair after Jerome Powell’s term ends in May. Hassett is expected to push for more rate cuts. The dollar "remains slightly offered on the view that the Fed will cut rates next week and that the arrival of Kevin Hassett as Fed Chair will somehow make the Fed more dovish," said Chris Turner, global head of markets at ING. YEN FIRMS The yen, which has been supported in recent sessions by expectations that the Bank of Japan could raise rates this month, edged up on Friday, rising 0.1% to 155.295 to the dollar. BOJ officials are ready to raise rates on December 19 in the absence of any major economic shocks, Bloomberg reported on Friday, a day after Reuters reported three sources as saying a hike this month was likely. "As the funding currency of choice in the carry trade, some unwinding in light of higher JPY rates is poised to boost the yen," Convera's Ruggiero said. Sterling was about flat on the day at $1.3329, not far from the previous session's six-week peak of $1.3385. Next week sees a parade of central bank policy decisions, with the Reserve Bank of Australia's coming on Tuesday, the Bank of Canada's on Wednesday and the Swiss National Bank's on Thursday in addition to the Fed's statement on Wednesday. That continues the following week with the BOJ, European Central Bank, Bank of England, and Sweden's Riksbank. Leading cryptocurrency bitcoin fell for the second straight day, slipping 3% to $89,701. https://www.reuters.com/world/asia-pacific/dollar-hovers-near-five-week-low-fed-rate-cut-bets-2025-12-05/
2025-12-05 07:00
Around 500 flights cancelled, Delhi airport cancels all IndiGo departures Aviation regulator provide relaxation on night-time duty rules At airports, stranded passengers vent fury, some stage protests Airline says disruptions due to misjudgment and planning gaps MUMBAI/DELHI, Dec 5 (Reuters) - Air travel across India was in turmoil for a fourth day on Friday after IndiGo cancelled around 500 flights, including all departures from New Delhi, prompting the government to announce special relief measures for the country's largest airline. In a bid to improve air travel safety, Indian authorities have introduced new stricter regulations limiting pilot flying times and placing tighter restrictions on their operation of night-time flights. Sign up here. But IndiGo (INGL.NS) , opens new tab admitted it failed to plan properly ahead of a November 1 deadline for the measures' introduction. And with air travel now approaching its December peak, that has forced widespread flight cancellations this week that have stranded thousands of travellers. On Friday, the airline, which accounts for over 60% of domestic air travel in the world's most populous nation, apologised to its customers. "These last few days we have a serious operational crisis," it said in a statement. "While this will not get resolved overnight, we assure you we will do everything in our capacity to help you in the meantime." Following a request by IndiGo, India's civil aviation authorities granted it a temporary exemption from some of the new rules on Friday to help it deal with the crisis. IndiGo had earlier flagged that it did not expect to fully restore operations until February 10, though on Friday it said there should be "progressive improvement" from Saturday. Other major Indian airlines, including Air India and Akasa, have not had to cancel flights due to the new rules. HUNDREDS OF FLIGHTS CANCELLED, PASSENGERS VENT ANGER On Friday, Delhi airport announced all IndiGo departures were canceled for the day, a number that a source put at 235 flights. Chennai airport also announced all departing IndiGo flights were annulled. The airline cancelled 165 flights in Mumbai, 102 in Bengaluru, 92 in Hyderabad, airport sources, who declined to be named, said. Other major metro airports saw IndiGo flights up to 6 p.m. (1230 GMT) cancelled on Friday. At many airports across the country, crowds of stranded passengers voiced their frustrations, aggressively arguing with staff. Social media platforms and local media were flooded with videos of angry travellers. "Down with IndiGo! Down with IndiGo!" a group of passengers at Bengaluru airport shouted in protest, a video post on X showed. Another video showed a father shouting at IndiGo crew members, demanding a sanitary pad for his daughter. A post on X from earlier Friday morning showed dozens of young children sitting inside a Delhi airport terminal. "Kids waiting since 4am for their IndiGo (flight) ... hungry, tired, sleepy," read the post's caption. INDIGO RECEIVES EXEMPTIONS FROM NEW PILOT DUTY RULES Shares of IndiGo dropped nearly 3% on Friday, taking their weekly slump to 10.3%. India's main opposition party has demanded a discussion on the issue in parliament. The new pilot duty rules mandate that pilots can only make two night-time landings per week, down from six previously. That provision was put on hold for IndiGo until February 10 by India's civil aviation regulator. The airline was also temporarily exempted from a rule specifying maximum flight duty periods for pilots doing some night flying. IndiGo said it will offer waivers on all cancellations and booking changes for travel between December 5 and December 15. The airline has also arranged ground transportation and thousands of hotel rooms for stranded customers, it said. https://www.reuters.com/world/india/indias-indigo-set-cancel-nearly-400-flights-fourth-day-pilot-shortage-crisis-2025-12-05/
2025-12-05 06:59
China's Xi joins France's Macron for trip to southwest China Rare for Chinese leader to accompany his guests beyond Beijing Macron overestimated what deals Xi could offer, analyst says China is constrained due to ongoing negotiations with U.S., EU BEIJING, Dec 5 (Reuters) - Chinese leader Xi Jinping accompanied French President Emmanuel Macron to Chengdu on Friday, a rare gesture seemingly reserved for the head of Europe's second-largest economy that highlights Beijing's focus on Paris in its ties with the European Union. Even when U.S. President Donald Trump made a landmark visit to China early during his first term in 2017, and Xi lavished him with a private dinner within Beijing's Forbidden City, the trip was confined to the Chinese capital. Sign up here. But despite the apparent bonhomie between Xi and Macron, the French president's visit so far has resulted in little beyond bolstering Beijing's diplomatic credentials, as world leaders turn to China seeking economic assurances due to Trump's tariffs, analysts say. It has also provided Macron with a chance to project statesmanship after a tough summer in domestic politics. Investors are watching to see whether a day that began with the French president surprising fellow joggers in the city's Jincheng Lake Park, before joining Xi at a historic dam site, will end with major commercial deals or a thaw in EU-China trade tensions, given that Macron has been joined on his fourth state visit to China by the heads of some of France's biggest firms. A meeting in the Chinese capital on Thursday only resulted in 12 cooperation agreements covering areas such as population ageing, nuclear energy and panda conservation, and no monetary total was disclosed. "I think they (France) thought that Xi would be in a position to offer a lot because Europe is really preparing this economic security doctrine," said Alicia Garcia-Herrero, senior fellow at the think tank Bruegel. "Macron probably felt that given his weight and the fact that France is clearly the one that is pushing the most on economic security, that they would get a deal, but nope." ECONOMIC OPPORTUNITIES FACE POLITICAL CONSTRAINTS Beijing may see friendly ties with France as a way into expanding its influence within the 27-strong EU, but is very constrained in its ability to offer Paris major concessions. The Chinese leader was not expected to sign off on a long-anticipated 500-jet Airbus order, for example, as that would reduce China's leverage in trade talks with the U.S., which is pressing for new Boeing commitments. Xi is also unlikely to ease conditions for French cognac makers or pork producers, as doing so would weaken Beijing's negotiating position with Brussels over tariffs on Chinese-made electric vehicles. Nor can Xi offer Macron a breakthrough on the war in Ukraine for him to take back to Europe, with China having recently reaffirmed its support for Russia. Recent visits by Spain's King Felipe VI and German Finance Minister Lars Klingbeil were similarly low on tangible outcomes. Chinese government advisers say Beijing feels it has the upper hand and is waiting for Brussels to yield and accept a minimum price plan for its EVs rather than the tariffs currently levied on them. "They (the EU) now recognise the complexity of the issue. After Trump became president again, they realised they are too dependent on the U.S.... Europe is now in need of more reciprocal trade with China," one advisor said, requesting anonymity as he is not authorised to speak with media. "The EU should really reflect on its China policy and not tie it too closely to Russia and Ukraine," he added. DIVIDE AND CONQUER Xi also did not raise the prospect of a trade deal with the EU with Macron - which China's top diplomat Wang Yi brought up when Estonia's foreign minister visited last month and the Chinese commerce ministry has touted - despite talks over a landmark EU-China investment pact having been frozen since 2021. The vote on whether to adopt the European Commission's EV tariffs divided the member states, with France voting in favour of the duties while Germany, Europe's biggest economy, voted against. China could seek to exploit such divisions. "It is interesting that they (China) keep raising it (a trade deal) with the member states," said a European Commission official. "We have no plans whatsoever to have any kind of trade agreement with China," they added, also requesting anonymity. https://www.reuters.com/world/china/chinas-xi-meets-frances-macron-southwestern-chengdu-2025-12-05/
2025-12-05 06:52
DUBAI, Dec 5 (Reuters) - A vessel located 15 nautical miles west of Yemen reported an exchange of fire after sighting about 15 small craft at a range of 1–2 cables, the United Kingdom Maritime Trade Operations (UKMTO) agency said on Friday. The vessel said the craft later left the area and that it remains on high alert. Sign up here. The ship's master reported the crew was safe and that it is continuing to its next port of call. https://www.reuters.com/world/british-maritime-receives-report-incident-15-nautical-miles-west-yemen-2025-12-05/
2025-12-05 06:44
MUMBAI, Dec 5 (Reuters) - The Indian rupee forward premiums dropped on Friday following the central bank's rate cut and forex swap, though currency traders say a softer spot trajectory should cap the downside. MARKET REACTION In the interbank order-matching system, the November 2026 forward premium fell to 1.91 rupees from 2.18 rupees before the Reserve Bank of India's policy decision, then recovered to 2.10 rupees. Sign up here. The slide to near 1.90 was driven by the RBI's 25-basis-point rate cut and its announcement of a $5 billion buy-sell dollar/rupee swap to boost rupee liquidity. The rupee weakened after the rate cut, briefly slipping back below 90 per U.S. dollar following the announcement. GRAPHIC WHY IT'S IMPORTANT Forward premiums shape the hedging costs for corporates. Higher premiums make it more expensive for importers to hedge their dollar exposures, while encouraging exporters to lock in forward rates. For carry traders, the premium effectively represents the return on holding long-rupee positions. The higher it is, the more attractive it becomes to buy the rupee against the dollar or run rupee-based carry trades. CONTEXT The RBI's rate cut surprised most interbank traders and came after the recent run-up in forward premiums fuelled by a weaker rupee. The FX swap announcement, while broadly anticipated given the need for liquidity measures and the currency's slide, added to the initial move lower in premiums. WHAT'S NEXT The RBI's rate cut and swap weigh on forward premiums, yet the cut simultaneously clouds the rupee's outlook, which was already fragile due to weak foreign flows. That added pressure on the spot could put a floor under premiums, bankers said. https://www.reuters.com/world/india/rbi-rate-cut-fx-swap-knock-forwards-lower-weak-rupee-outlook-caps-fall-2025-12-05/
