2025-09-11 09:07

Euro steady, ECB rate decision due at 1215 GMT Markets await US CPI data later on Thursday Australian dollar nears strongest level since November SINGAPORE/LONDON, Sept 11 (Reuters) - The dollar held onto small gains on Thursday as traders awaited key U.S. consumer price data for a steer on the Federal Reserve's rate cutting path, while the euro was unchanged ahead of a European Central Bank meeting. "The main event is the U.S. CPI... The market is looking for reasons to reprice the Fed lower and push the USD down," said Michalis Rousakis, G10 FX strategist at Bank of America. Sign up here. "The question is whether the Fed can be re-priced lower, given that a cut or a little more is priced for September, and almost three cuts are priced by year-end," he said. Bank of America's house view is for two more Fed rate cuts this year. The dollar index nudged up 0.2% to 97.97, with the dollar largely steady against major currencies. Elsewhere, an unexpected drop in U.S. factory-gate prices on Wednesday has bolstered expectations that the Federal Reserve will cut rates next week. The data followed Tuesday's revision to U.S. employment growth figures, with the U.S. having created 911,000 fewer jobs in the 12 months through March than previously estimated. Meanwhile, the European Central Bank was expected to hold rates steady when it meets later in the day. The euro was unchanged at $1.1686 ahead of the rate decision. Analysts said policymakers may strike a more dovish tone to counter a fraught trade and political outlook across the continent. The common currency is stabilising after a two-day streak of declines as geopolitical tensions continue on the EU's eastern flank. Poland said it shot down suspected Russian drones in its airspace on Wednesday with the backing of aircraft from its NATO allies, the first time a member of the Western military alliance is known to have fired shots during Russia's war in Ukraine. Commerzbank analysts said in a note that hopes of the ECB meeting being a catalyst for greater movement in EUR/USD are likely to be dashed, given no new information is likely to be forthcoming. "If anything, hopes may lie with ECB President Christine Lagarde. After all, she sounded surprisingly hawkish at the last two press conferences," they wrote. Given that a rate cut is not expected until next June, they added, Lagarde is unlikely to reveal her hand so far in advance. FED FIRMLY IN FOCUS Attention remains on the Fed's likely rate cut trajectory. Markets are trading on expectations that the prospect of the Fed easing is a certainty and the only remaining question is by how much. Traders are pricing in an 8.9% chance of a jumbo 50 basis points (bps) rate cut at the central bank's September 16-17 meeting, while a cut of at least 25 bps is viewed as a done deal, according to the CME Group's FedWatch tool. Appointments to the Fed's rate-setting panel remained in focus, as President Donald Trump's administration on Wednesday moved to appeal a federal judge's ruling temporarily blocking Trump from taking the unprecedented step of firing Federal Reserve Governor Lisa Cook. The White House is seeking to remove her before next week's Fed meeting. Stephen Miran also moved closer to becoming a Federal Reserve governor, furthering Trump's effort to exert more direct control over interest rate policy. The Senate Banking Committee voted to advance Miran's nomination, though lawmakers involved said it is far from certain if the process can be completed in time for him to participate in the coming meeting. Against the yen, the dollar was trading 0.3% higher at 147.96 yen , after data showed Japanese wholesale prices rose 2.7% in the year to August, accelerating from the previous month in a sign of sticky inflationary pressure in the world's fourth-largest economy. The Australian dollar slipped 0.1% to $0.6605 , retreating after hitting the highest levels since November on Wednesday, as commodities including crude oil and gold gave up recent gains. The offshore yuan traded at 7.1232 yuan per dollar , strengthening 0.06%. The kiwi slipped 0.3% to $0.59260 . Sterling traded down 0.2% to $1.35105 . https://www.reuters.com/world/africa/dollar-steady-traders-await-us-inflation-data-ecb-meeting-2025-09-11/

2025-09-11 08:37

LONDON, Sept 11 (Reuters) - Britain's finance minister Rachel Reeves said on Thursday she would look at reforming business property taxes to make it easier for smaller firms to expand, as she seeks to step up efforts to boost growth. As her annual budget on November 26 approaches, speculation about tax increases and worries over inflation are already weighing confidence among some businesses and households. Sign up here. Many economists think Reeves will need to find tens of billions of pounds more in revenue due to higher borrowing costs, a less certain growth outlook and a failure to pass welfare cuts through parliament. "Our economy isn't broken, but it does feel stuck," Reeves said alongside a finance ministry report into business property taxation, known as rates. The report proposed smoothing out big jumps in property taxes faced by small businesses when they expand. "Tax reforms such as tackling cliff-edges in business rates and making reliefs fairer are vital to driving growth," she said in a statement. Also under consideration are changing how the tax is calculated and enhancing tax reliefs when the value of a property is increased through improvements. Further details would be published in the budget, it added. Helen Dickinson, chief executive of the British Retail Consortium, welcomed the plans but said it was more important for the government to confirm a details of a promised reduction in rates for retail, hospitality and leisure businesses. "Until we get clarity on these changes, which isn’t expected until the budget, many local investments in jobs and stores are being held back," she said. https://www.reuters.com/world/uk/uk-finance-minister-eyes-tax-reform-help-small-business-expansion-2025-09-11/

2025-09-11 07:52

Mexico to raise China auto tariffs to maximum level New tariffs affect $52 billion in imports from countries without trade deals Minister says measure will protect local jobs Move seen as response to U.S. pressure MEXICO CITY, Sept 10 (Reuters) - Mexico said on Wednesday it will raise tariffs on automobiles from China and other Asian countries to 50%, in a broad overhaul of import levies the government said would protect jobs and analysts said was aimed at placating the United States. The Economy Ministry said the moves, which will increase tariffs to varying degrees on goods across multiple sectors including textiles, steel and automotive, would impact $52 billion of imports. Sign up here. "They already have tariffs," Economy Minister Marcelo Ebrard told reporters when asked about the import levies on Chinese cars, which are currently 20%. "What we will do is raise them to the maximum level allowed. "Without a certain level of protection, you almost can't compete," he added. Ebrard said the measures, which come just within limits imposed by the World Trade Organization, were intended to protect jobs in Mexico as Chinese cars were entering the local market "below what we call reference prices." China firmly opposes to being coerced by others, and restrictions imposed under "various pretexts", its foreign ministry said on Thursday, adding that the Asian nation hopes that Mexico will instead work with it towards global economic recovery and trade development. "We will resolutely safeguard our own rights and interests in accordance with the actual situation," ministry spokesperson Lin Jian told reporters at a regular news briefing. The plan still needs to be approved by Congress, where the government holds a significant majority. The tariffs will impact countries that do not have trade deals with Mexico, especially China, South Korea, India, Indonesia, Russia, Thailand and Turkey, the Economy Ministry said in a document. The plan will impact 8.6% of all imports, the document said, and will protect 325,000 industrial and manufacturing jobs that were at risk. The measures also include a 35% tariff on steel, toys and motorcycles. Textiles will see levies between 10% and 50%. The move comes as the United States pushes countries in Latin America to limit their economic ties with China, with which it competes for influence in the region. "The U.S. is not going to allow China to use Mexico as a backdoor," said Mariana Campero of the CSIS Americas Program, adding that Mexico has doubled its trade deficit with China in the last decade, hitting $120 billion last year. Ebrard had earlier this year spoken against tariff measures, saying they were at odds with economic growth and keeping inflation down. RESPONDING TO U.S. PRESSURE Banco BASE analyst Gabriela Siller said the tariffs would likely boost demand for Chinese vehicles in the very short-term. "Tariffs on countries with which Mexico does not have trade agreements have two objectives," she said on social media. "First, more revenue and second, to look good to Trump." John Price, managing director at Americas Market Intelligence, said that Mexico, which exports many of its own vehicles to the United States, is responding to U.S. pressure while trying to protect its economy. "The Mexicans are trying to placate the Americans, but protect their industrial policy that's worked so well for them over the last 30 years," he said after the government announced it was looking to raise an additional $3.76 billion in tariff measures next year. The United States and Mexico, which share a free trade agreement along with Canada, are each other's top trade partners. The agreement, which has spared Mexico the brunt of much of the tariffs from U.S. President Donald Trump's administration, is set for review next year. https://www.reuters.com/business/autos-transportation/mexico-raise-tariffs-cars-china-50-major-overhaul-2025-09-10/

2025-09-11 07:33

NEW DELHI, Sept 11 (Reuters) - India is preparing to launch a national carbon capture initiative with substantial government incentives, as it seeks to balance rising energy demand with its climate goals while relying on coal, a senior official at India’s leading policy think tank said on Thursday. The initiative, aimed at promoting carbon capture, utilisation and storage (CCUS) technologies, could offer funding support ranging from 50% to 100% for select projects, Rajnath Ram, adviser, energy at NITI Aayog, said. Sign up here. CCUS technology removes CO2 produced by industrial processes from the atmosphere or captures it at the point of emission and stores it underground. "These incentives will help industries adopt carbon capture technologies and integrate them with coal-based energy systems," the official said at a coal summit organised by the Indian Chamber of Commerce. India's electricity consumption is rising and coal is expected to remain a key part of the energy mix for the next two decades, Ram said. "We cannot be subjective about coal. The question is how sustainably we can use it." He said that converting coal to synthetic natural gas will reduce the country's natural gas imports by nearly 50%, adding that commercialisation of the technology is still a challenge. India is aiming to expand its non-fossil fuel capacity to 500 GW by 2030, but coal remains central to its energy security. The government plans to increase coal-based capacity by 97 GW by 2035, taking the total to around 307 GW to ensure round-the-clock power. The government is also exploring how carbon capture can be integrated with gasification projects to offset emissions. Globally, several countries have started projects in CCUS technology and the International Energy Agency says the technology can play a vital role in achieving global climate goals. https://www.reuters.com/sustainability/boards-policy-regulation/india-offer-large-carbon-capture-incentives-coal-remains-major-part-energy-mix-2025-09-11/

2025-09-11 07:26

KYIV, Sept 11 (Reuters) - Ukrainian private energy firm DTEK has launched the country's largest battery storage facility to ensure stable power supplies in the face of Russian attacks on Ukraine's energy sector, the company said on Thursday. Russia, which launched a full-scale war against Ukraine in 2022, is attacking its energy system, depriving Ukraine's industry and millions of residents of power. Sign up here. DTEK said its total investment in the project amounted to 125 million euros ($146.13 million). Six battery storage systems have been connected to the power grid in the capital Kyiv and Dnipropetrovsk regions in eastern Ukraine, it said. The combined facilities, which were constructed in partnership with U.S.-based Fluence (FLNC.O) , opens new tab, a global leader delivering intelligent energy storage, have the capacity to store 400 megawatt hours of electricity - enough to power 600,000 Ukrainian households for two hours. DTEK said the new systems would increase the security of the electricity supply and reduce the risk of outages and accidents, especially in the event of a breakdown in some power generation. "In the context of large-scale attacks on Ukraine's energy system, the role of energy storage systems has become just as fundamental as energy generation itself," said energy minister Svitlana Grinchuk. ($1 = 0.8554 euros) https://www.reuters.com/business/energy/ukraines-dtek-invests-major-battery-storage-bolster-energy-security-2025-09-11/

2025-09-11 07:15

LONDON, Sept 11 (Reuters) - Britain's finance minister Rachel Reeves said on Thursday she would look at reforming business rate taxes to support small businesses to open new premises, by making changes to avoid sudden jumps in rates which can hamper expansion. "Tax reforms such as tackling cliff-edges in business rates and making reliefs fairer are vital to driving growth," she said in a statement. Sign up here. https://www.reuters.com/world/uk/uk-finance-minister-promises-tax-reform-help-small-business-expansion-2025-09-11/