2025-09-08 04:27

Sept 8 (Reuters) - HashKey Group will launch its inaugural Digital Asset Treasury (DAT) focused fund with an initial target size of $500 million, Hong Kong's largest licensed crypto exchange said on Monday. The multi-currency fund's DAT strategy refers to public companies accumulating cryptocurrency assets to capitalise on higher token prices and a softening regulatory environment. Sign up here. The strategy's popularity surged this year as many companies seek to replicate the success of U.S.-based Strategy (MSTR.O) , opens new tab, a software company that began accumulating bitcoin in 2020 and holds more than $63 billion in cryptocurrency as of June. Strategy copycats have increased their bitcoin holdings to nearly 100,000 bitcoin collectively, according to Standard Chartered. Through investing in and operating top-tier DAT projects globally, HashKey aims to advance crypto asset standardisation and accelerate the development of a sustainable Web3 ecosystem, it said in a statement. Web3 refers to a version of the internet that is decentralised and operates on blockchain technology. "HashKey will build a diversified portfolio by initiating and investing in a range of DAT projects focused on mainstream crypto assets, with an initial emphasis on Ethereum and Bitcoin ecosystem projects," it said. https://www.reuters.com/sustainability/climate-energy/hong-kong-crypto-exchange-hashkey-launch-500-million-digital-treasury-fund-2025-09-08/

2025-09-08 00:20

HONG KONG, Sept 8 (Reuters) - Hong Kong shut schools and many businesses closed on Monday as severe Tropical Storm Tapah came within 170 km (106 miles) of the territory with gale force winds and heavy rain bands affecting much of the financial hub, prompting the cancellation of some flights. Damage seemed minimal, with streets mainly calm and no reports yet of landslides and major flooding on Monday morning. Sign up here. Most transport, including ferries, buses and trams, was suspended, while the city's mass transit railway system was running at longer intervals. Hong Kong's Observatory said the Typhoon 8 signal, its third-highest, would remain in place until at least 11 a.m. (0300 GMT). Businesses can reopen if the signal is lowered, but schools will be shut for the full day, the city's education bureau said. Sustained winds of 101 kph (63 mph) were recorded near the city's international airport on Lantau Island on Monday morning, with maximum gusts of 151 kph. Authorities also issued the Amber rainstorm signal, its lowest in a three-tier ranking, at 4:55 a.m. In the neighbouring Chinese city of Shenzhen, schools have also been shuttered. https://www.reuters.com/business/environment/hong-kong-schools-businesses-close-tropical-storm-tapah-brushes-past-2025-09-08/

2025-09-08 00:07

Yen weakens, Nikkei rises 1% after Ishiba resignation Ishiba resignation bring more fiscal uncertainty Stocks rise as traders pencil in rate cut in September US inflation data this week also in focus SINGAPORE, Sept 8 (Reuters) - Stocks rose and the dollar wobbled on Monday after dismal U.S. labour data sealed the case for rate cuts this month, while the yen fell as investors girded for uncertainty in Japan following the resignation of Prime Minister Shigeru Ishiba. Gold prices held near a record high while U.S. Treasury yields hit five-month lows after data showed the world's largest economy created far fewer jobs than expected in August, with markets factoring in chances of a jumbo rate cut. Sign up here. Much of the focus last week was on elevated long-end bond yields across the globe as investors fretted about the state of various countries' finances from Britain and France to Japan. Some of those worries could return after Japan's Ishiba resigned on Sunday, leading to political uncertainty in the world's fourth-largest economy and clouding the policy path for the Bank of Japan. The spotlight will be on who replaces Ishiba, with investors fretting that an advocate of looser fiscal and monetary policy, such as Liberal Democratic Party veteran Sanae Takaichi, who has criticised the BOJ's interest rate hikes, could take the helm next. Yields on super-long Japanese government bonds (JGBs) have already been hovering near record highs, while Japan's Nikkei share gauge has recently slipped from last month's record high. "The markets are going to be framing this around what it means for fiscal policy, inflation and the BOJ's response," said Kyle Rodda, senior financial market analyst at Capital.com. "I suspect this will weaken the yen a bit and could actually boost stocks. But the latter relies on some leadership certainty first, so the initial move could be a marginally weaker yen." The yen fell across the board and was last 0.6% lower at 148.39 per dollar, while the Nikkei (.N225) , opens new tab rose 1% in early trading. RATE CUTS ARE HERE The prospect of an interest rate cut by the Federal Reserve later this month propped up stock markets elsewhere while weighing on the Treasury yields and the dollar. S&P 500 futures pointed 0.25% higher in early Asian hours on Monday after a volatile session on Friday where the index hit a record high but then closed 0.3% lower. Nasdaq futures advanced 0.25%. Investor attention this week will be on the U.S. inflation report on Thursday to gauge the risk of rising prices that could help temper some of the enthusiasm for a larger rate cut. "While most investors remain aligned on a 25 basis point cut at the September Fed meeting, we expect market focus to shift toward calls for a larger move, with a 50bp cut now in play," said Harun Thilak, head of global capital markets North America at Validus Risk Management. Traders have fully priced in a 25 bp cut later this month with 8% chance of a jumbo 50 bp rate cut, the CME FedWatch tool showed. They are anticipating 68 basis points of easing by the end of this year. "The Fed has more than enough reasons and will cut by 25bps ... with another two within six-months," said George Boubouras, head of research at K2 Asset Management. "U.S. cash rates are notably higher than other developed markets (and) given the resilient and robust U.S. economy, lower cash rates are now required. Fed commentary of further rate cuts will be supportive, without this equity markets will be weaker." In the currency market, the euro eased a bit to $1.1708 after surging 0.6% on Friday, while sterling last fetched $1.3489 after a 0.5% rise on Friday. Investor attention will also be on France where Prime Minister Francois Bayrou faces a confidence vote on Monday, which he is expected to lose, plunging the euro zone's second-largest economy deeper into political crisis. In commodities, gold prices were at $3,588 per ounce, just shy of the $3,600 milestone. Gold is up 37% this year after rising 27% in 2024. https://www.reuters.com/world/china/global-markets-wrapup-1-2025-09-08/

2025-09-07 23:39

NEW DELHI, Sept 8 (Reuters) - Indian Prime Minister Narendra Modi's government's roll-out of ethanol-blended fuel, called E20, has caused panic and confusion in the world's third-largest auto market. Here are facts about E20 and details of its impact: Sign up here. HOW WAS E20 ROLLED OUT? HOW DOES IT HELP? E20 is petrol blended with 20% ethanol, an alcohol mainly produced from sugarcane and grains such as maize and rice. It was introduced at a few pumps in April 2023 and has been rolled out across India since April 2025, replacing the 10% ethanol fuel, called E10, that most cars are designed to use. In recent weeks, older fuel blends like E10 and E5 have ceased to be available, leaving consumers with no choice but to buy E20. India says E20 reduces oil imports, helping to save $5 billion in foreign exchange this year, and will add almost $4.6 billion to farmer incomes. The fuel is also considered less polluting. WHY ARE INDIANS ANGRY? Brazil and the United States are among other major markets pushing ethanol-blended fuels. But those nations - unlike India - offer multiple fuel blends at their pumps, giving consumers a choice. Indian motorists worry about having no other fuel option at the country's 90,000 pumps, and how E20 may affect the performance of their older cars and motorcycles. Many car manuals cite only E5 or E10 as permitted fuels to be used, adding to the confusion - even though an auto industry group, not automakers directly, had said warranties and insurance claims would be honoured. WHAT DO THE INDUSTRY AND GOVERNMENT SAY? The government says the fears are unfounded and E20 is the only way forward. Older vehicles may need to replace some rubber parts and gaskets but the government says that is a "simple process". The auto industry has largely supported the government's line. It said last week that, according to lab tests, fuel efficiency falls by 2-4% with the use of E20 - higher in real world conditions and older vintages, but called it a safe fuel. This marks a drastic change from the industry's long-standing position on E20. In 2020, the Society of Indian Automobile Manufacturers said the government must provide E10 alongside E20 to ensure the "safe operation" of vehicles, adding that changing parts in older vehicles is a "mammoth task". WHO DOES IT HELP? India's sugar mills and distilleries like Bajaj Hindusthan Sugar (BJHN.NS) , opens new tab, Balrampur Chini Mills (BACH.NS) , opens new tab and Shree Renuka Sugars (SRES.NS) , opens new tab gain from higher sugar demand, and so do ethanol producers like Praj Industries (PRAJ.NS) , opens new tab and CIAN Agro (CIAN.BO) , opens new tab. State-run oil marketing companies, including Indian Oil Corporation (IOC.NS) , opens new tab, Bharat Petroleum Corporation (BPCL.NS) , opens new tab and Hindustan Petroleum Corp (HPCL.NS) , opens new tab gain from reduced crude imports. https://www.reuters.com/sustainability/climate-energy/why-e20-fuel-is-causing-angst-indias-auto-market-2025-09-07/

2025-09-07 23:31

Yen slumps on heightened political uncertainty in Japan Ishiba's resignation clouds BOJ outlook Investors pricing in small chance of outsized September Fed cut French politics in focus SINGAPORE, Sept 8 (Reuters) - The yen fell broadly on Monday following news that Japanese Prime Minister Shigeru Ishiba had resigned, while the dollar was nursing losses after tumbling on a weak U.S. jobs report that cemented expectations for a Federal Reserve rate cut this month. Ishiba on Sunday announced his resignation, ushering in a potentially lengthy period of policy uncertainty at a shaky moment for the world's fourth-largest economy. Sign up here. The yen slumped in response in early Asia trade on Monday, falling 0.7% against the dollar to 148.43. The Japanese currency similarly slid more than 0.5% against the euro and sterling to 173.77 and 200.15, respectively. Investors are focusing on the chance of Ishiba being replaced by an advocate of looser fiscal and monetary policy, such as Liberal Democratic Party (LDP) veteran Sanae Takaichi, who has criticised the Bank of Japan's interest rate hikes. "The probability of an additional rate hike in September was never seen as high to begin with, and September is likely to be a wait-and-see," Hirofumi Suzuki, chief currency strategist at SMBC in Tokyo, said of the BOJ's next move. "From October onward, however, outcomes will in part depend on the next prime minister, so the situation should remain live." Concerns over political uncertainty prompted a selloff in the yen and Japanese government bonds (JGBs) last week, sending the yield on the 30-year bond to a record high. "With the LDP lacking a clear majority, investors will be cautious until a successor is confirmed, keeping volatility elevated across yen, bonds and equities," said Charu Chanana, chief investment strategist at Saxo. "Near-term, that argues for a softer yen, higher JGB term-premium, and two-way equities until the successor profile is clear." SEPTEMBER FED CUT BAKED IN In other currencies, the dollar was recouping some of its heavy losses, helped in part by the yen's weakness, after falling sharply on Friday on data that showed further cracks in the U.S. labour market. The closely watched nonfarm payrolls report showed U.S. job growth weakened sharply in August and the unemployment rate increased to nearly a four-year high of 4.3%. Investors ramped up bets of an outsized 50-basis-point rate cut from the Fed later this month in the wake of the release and are now pricing in an 8% chance of such a move, as compared to none a week ago, according to the CME FedWatch tool. Against the dollar, sterling fell 0.14% to $1.3488, having risen more than 0.5% on Friday. The euro was similarly down 0.13% at $1.1705, after hitting a more than one-month high on Friday. Focus for markets on Monday will also be on French Prime Minister Francois Bayrou's confidence vote, which he is expected to lose, plunging the euro zone's second-largest economy deeper into political crisis. The dollar index steadied at 97.88, after sliding more than 0.5% on Friday. "Given the more elevated downside risks to the employment side of the mandate, we think a rate cut at the September meeting is all but assured. We continue to expect a 25bp cut at that meeting," said Barclays economists in a note. "However, we change our Fed call by adding another 25bp cut in October, while leaving our December cut unchanged. In all, we now think the FOMC will proceed with three 25bp cuts this year, easing the policy stance in the face of the slowing labor market." U.S. Treasury Secretary Scott Bessent on Friday called for renewed scrutiny of the Fed, including its power to set interest rates, as the Trump administration intensifies its efforts to exert control over the central bank. President Donald Trump is considering three finalists for Federal Reserve chair to replace Jerome Powell, whom the president has criticised all year for not cutting rates as he has demanded. Elsewhere, the Australian dollar eased 0.06% to $0.6551, while the New Zealand dollar was down 0.1% at $0.5886. https://www.reuters.com/world/middle-east/yen-slides-after-japan-pm-ishiba-resigns-2025-09-07/

2025-09-07 23:05

Sept 8 (Reuters) - Over 150 bosses from Europe's electric car industry signed a letter on Monday urging the European Union to stick to its 2035 zero emission target for cars and vans. The electric car industry's signatories, including Volvo Cars and Polestar, warned against any delays to the targets, saying in the letter that would mean stalling Europe's EV market, handing an advantage to global competitors and eroding investor confidence. Sign up here. It follows a separate letter at the end of August from heads of the European automobile manufacturers' and automotive suppliers' associations to European Commission President Ursula von der Leyen stressing that a 100% reduction for cars by 2035 was no longer feasible. That letter included the signature of Mercedes-Benz (MBGn.DE) , opens new tab CEO Ola Kaellenius. On September 12, von der Leyen is set to discuss the future of the automotive sector automotive with industry players, which are facing the dual threat of increased competition from Chinese rivals and U.S. tariffs. Weakening targets now would send a signal that Europe can be talked out of its own commitments, Michael Lohscheller, CEO of Polestar, said in a statement. "That would not only harm the climate. It would harm Europe's ability to compete," he said. Michiel Langzaal, chief executive of EU charging company Fastned, cited the clarity the 2035 target had provided and investments already made in areas like charging infrastructure and software development. "Those investments can only create returns if we get to this goal," he said. All European carmakers except Mercedes-Benz were on track to comply to CO₂ regulation for cars and vans over 2025-2027, according to a report on Monday from transport research and campaign group T&E. Mercedes, it said, would need to pool its emissions with Volvo Cars and Polestar to avoid fines for missing the targets. https://www.reuters.com/sustainability/climate-energy/europes-electric-car-industry-urges-eu-not-delay-co2-emission-targets-2025-09-07/