2025-09-03 11:25

Trump's attacks on Fed leadership has raised concern among central bankers globally Posen says Fed help should not be taken for granted Fed renewed liquidity lines with some major central banks European central bankers have privately discussed alternatives FRANKFURT, Sept 3 (Reuters) - The European Central Bank and its peers around the world should pool their reserves for U.S. dollar liquidity as Federal Reserve help cannot be guaranteed given President Donald Trump's attacks, the head of an influential think tank said. Adam Posen of the Peterson Institute for International Economics told an ECB conference on Wednesday it should not be taken for granted that a politicised Fed would lend dollars to foreign central banks in a crisis, as it did a few times since the 2007-2008 financial meltdown. Sign up here. He recommended that the ECB and its peers outside the United States pool their reserves in dollars in order to provide emergency liquidity to domestic banks if needed. This option has been raised by European central bankers behind closed doors. "Whether it's acknowledged publicly or not, there has to be thinking short term about alternative pooling of assets and swap lines and dollars among major central banks and governments," Posen said. "You will have to team with other central banks, and it's going to have to start being open... about having alternative swap lines," he told the conference hosted by ECB President Christine Lagarde. The Fed earlier this year renewed liquidity lines with a number of major central banks and has never suggested it would end these facilities. Central bankers who privately discussed such a move in the past said the main issue was with its size. The market for U.S. dollar bonds and loans issued outside the United States is worth around 25 trillion euros ($29 trillion), according to BIS data. All foreign central banks put together have dollar-denominated reserves of just 7 trillion euros. This meant that these alternative swap lines would only suffice to tackle a local, rather than global, crisis, Posen said in a conversation after the event. He expected regional arrangements such as the Chiang Mai Initiative of the Association of Southeast Asian Nations and the Arab Monetary Fund to play a greater role too. ECB supervisors have also told banks they watch their exposure to the dollar and other foreign currencies, fearing Fed swap lines might be withdrawn while surging economic conflicts may make markets more volatile. Posen said the ECB should be "thinking about getting certain systemic institutions out of dollar liquidity needs over the medium to long term". European University Institute professor Thorsten Beck told the conference that the ECB should also tackle the risk of euro zone payments relying on U.S. credit card providers Visa and Mastercard. The ECB is developing a digital euro to provide an alternative to those cards and to dollar-denominated stablecoins. ($1 = 0.8542 euros) https://www.reuters.com/business/finance/central-banks-urged-pool-dollar-reserves-fed-help-questioned-2025-09-03/

2025-09-03 11:17

Sept 3 (Reuters) - Futures tied to Canada's main stock index was flat on Wednesday as investors stayed cautious ahead of key economic data that could shape the Bank of Canada's interest rate decision later this month. Futures on the S&P/TSX index gained 0.01% to 1,696.30 points by 06:50 a.m. ET (1050 GMT). The benchmark index edged up to a record high on Tuesday. Sign up here. Investors will closely watch Canada's unemployment data due on Friday for potential signals that could guide the central bank's rate-cut path later this month. The BoC has kept rates steady at 2.75% at its last three meetings since March. Data showed on Tuesday, Canada's manufacturing sector contracted in August for the seventh straight month as U.S. tariffs weighed on export demand. Meanwhile, Wall Street closed sharply lower in the first trading session of September as investors weighed a court ruling suggesting most of U.S. President Donald Trump's tariffs may be illegal, while a spike in longer-dated Treasury yields pressured equities. In commodities, gold surged to a fresh record high and copper prices were steady, while oil prices fell by more than 1% on Wednesday. In corporate news, Canadian oil and gas producer Strathcona Resources (SCR.TO) , opens new tab said it has purchased additional 6.66 million common shares of rival MEG Energy (MEG.TO) , opens new tab for about C$190.8 million ($138.09 million). Focus will also be on U.S. job openings data for July later in the day. 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-muted-focus-remains-weeks-economic-data-2025-09-03/

2025-09-03 11:13

LONDON, Sept 3 (Reuters) - The British pound and euro edged higher on Wednesday, as investors paused to assess the impact of rising borrowing costs after a surge in bond yields. Long-dated government borrowing costs from Japan to Britain touched fresh multi-year highs on Wednesday on nagging concerns over the fiscal health of some of the world's biggest economies, although a degree of calm was returning after a sharp sell-off. Sign up here. Similarly, the pound last traded 0.1% higher at $1.3409, recouping some of its more than 1% tumble on Tuesday. Against the euro , sterling flattened at 86.86 pence, after falling 0.6% on Tuesday. In the gilt market, Britain's 30-year borrowing costs rose to their highest levels since 1998. "Yesterday’s rise in EUR/GBP highlights just how sensitive the pound is to yield increases, but we take a conservative view and don’t expect the pound to fall much further on gilt moves alone," said Francesco Pesole, FX strategist at ING, adding that long-dated European bonds were also sold off this week. Investors will be waiting to hear Bank of England Governor Andrew Bailey, who is due to answer questions from the House of Commons' Treasury Committee at 1315 GMT. Meanwhile, the euro steadied against the dollar at $1.1651, after falling 0.6% on Tuesday. A survey showed on Wednesday that the euro zone economy kept expanding at a snail's pace in August, as weaker services growth offset improved manufacturing output. The dollar edged 0.08% lower to 98.30 against a basket of currencies , having gained 0.66% on Tuesday. Investors also had their eye on a slew of U.S. labour market data due this week, headlined by Friday's nonfarm payrolls report, for more clues on rate cut trajectories. JAPANESE POLITICS In Japan, the yen was down 0.2% at 148.68 per dollar, having slid 0.8% on Tuesday after the ruling party's Secretary-General Hiroshi Moriyama, a close aide to Prime Minister Shigeru Ishiba, said he intended to resign. That could potentially affect the fate of Ishiba, who has resisted calls to quit over his party's defeat in an upper house election in July. "On the surface, political uncertainty, and the possibility that Prime Minister Shigeru Ishiba might resign in the coming days or weeks, is having a debilitating impact on the yen," said Kit Juckes, Societe Generale's chief global FX strategist. Sanae Takaichi, one of the leading contenders to replace Ishiba, is known for favouring low domestic interest rates. https://www.reuters.com/world/africa/euro-sterling-steady-traders-assess-impact-rising-borrowing-costs-2025-09-03/

2025-09-03 11:13

UK government to hold annual budget on November 26 Most economists expect fresh tax rises to meet fiscal goals Reeves denies UK economy is 'broken', pledges tight spending UK 30-year borrowing costs have risen to highest since 1998 British inflation and borrowing costs are highest in G7 LONDON, Sept 3 (Reuters) - British finance minister Rachel Reeves said on Wednesday she would deliver her annual budget on November 26, insisting the economy was not "broken" and that she would keep a grip on spending to help lower inflation and borrowing costs. Britain is facing renewed market concern over its ability to keep its finances under control, helping push 20- and 30-year borrowing costs to their highest since 1998. Sign up here. Government borrowing costs are the highest in the Group of Seven advanced economies. So too is inflation, limiting the Bank of England's scope to cut interest rates. "Britain's economy isn't broken. But I know it's not working well enough for working people," Reeves said in a video message. "We must bring inflation and borrowing costs down by keeping a tight grip on day-to-day spending through our non-negotiable fiscal rules." The government also wants to press on with measures to boost growth and productivity, and Reeves wants fellow ministers to go further on planning reform and other deregulatory measures. Reeves and Prime Minister Keir Starmer are struggling to meet mounting demands for spending against a backdrop of historically weak economic growth and pre-election promises not to raise the rates of major taxes. Cuts are hard as the government gave long-term budgets for most departments in June and has pledged to keep raising pensions, while working-age welfare spending is under a review not due to report until late next year. Setting out her plans for the year ahead will likely involve Reeves needing to find new sources of tax revenue in order to balance day-to-day spending with tax revenue by 2029/30. Reeves had just under 10 billion pounds ($13.5 billion) of headroom to meet that target in March. But economists expect she must now tackle a roughly 20 billion-pound shortfall, due to weak growth, high borrowing costs and U-turns on plans to cut welfare for the long-term sick and fuel subsidies for retired people. FISCAL TIGHTENING NEEDED The Resolution Foundation think tank - whose previous head, Torsten Bell, is now pensions minister and advises Reeves on the budget - estimated headroom had been reduced by 3 billion pounds from debt interest and a further 6 billion from abandoned welfare cuts. "The Chancellor is already on track to miss her fiscal rules. With a growth downgrade also likely, significant fiscal tightening will be needed," the think tank's chief executive, former finance ministry official Ruth Curtice, said. The announcement is likely to intensify weeks of speculation about tax rises - some of which has already weighed on business sentiment after concerns the budget could lead to higher levies on banks, gambling, or more expensive housing. In last year's budget, Reeves raised taxes by 40 billion pounds - the biggest increase in over 30 years - something she has promised not to repeat. The new budget will come alongside a twice-yearly update of growth and borrowing forecasts from the Office for Budget Responsibility, where there will be focus on whether it lowers its unusually upbeat assessment of the outlook for productivity. The timing of the budget reflects a legal requirement to give the OBR at least 10 weeks' notice and a desire by the government for the OBR to have time to assess if policy changes will boost growth and give the government reasonable notice before final budget decisions are made. ($1 = 0.7402 pounds) https://www.reuters.com/world/uk/uks-reeves-sets-november-26-budget-date-markets-scrutinise-british-debt-2025-09-03/

2025-09-03 11:09

Sept 2 (Reuters) - An armed group that controls part of western Sudan appealed on Tuesday for foreign help in recovering bodies and rescuing residents from torrential rain, after it said at least 1,000 people were killed when a landslide buried a mountain village. Only one person survived the destruction of the village of Tarseen in the mountainous Jebel Marra area of the Darfur region, said the Sudan Liberation Movement/Army. Sign up here. SLM/A, which has long controlled and governed an autonomous portion of Jebel Marra, appealed to the United Nations and international aid agencies to help collect the bodies of victims, including men, women and children. "Tarseen, famed for its citrus production, has now been completely levelled to the ground," the group said in a statement. Continuing rains have made travel in the region difficult and could impede any rescue or aid efforts. "Nearby villagers are overwhelmed with fear that a similar fate might befall them if the ... torrential rainfall persists, which underscores the urgent need for a comprehensive evacuation plan and provision of emergency shelter," the group's leader, Abdelwahid Mohamed Nur, said in a separate appeal. A statement by the U.N.'s resident coordinator put the death toll at between 300 and 1,000, citing local reports. Arjimand Hussain, regional response manager for the development group Plan International, said the last 45 km of the route to Tarseen were impassable to motor vehicles and could only be negotiated on foot or by donkey. Nine bodies were recovered by volunteers, said Abdelhafiz Ali from the Jebel Marra Emergency Room, who noted that the village had hosted hundreds of people displaced by fighting. The SLM/A has remained neutral in the battle between the main enemies in Sudan's civil war, the Sudanese army and the paramilitary Rapid Support Forces. The two foes are fighting over control of al-Fashir, capital of North Darfur state, which is under siege from the RSF and has suffered famine. Residents of al-Fashir and nearby areas have sought shelter in Jebel Marra, though food, shelter, and medical supplies are insufficient and hundreds of thousands have been exposed to the rains. Tawila, where most have arrived, is in the throes of a cholera outbreak, as are other parts of Darfur. The two-year civil war has left more than half of Sudan's population facing crisis levels of hunger and driven millions from their homes, leaving them especially exposed to the country's damaging annual floods. Sudan's army-controlled government expressed its condolences and willingness to assist. The prime minister of a newly-installed RSF-controlled rival government, Mohamed Hassan al-Taishi, said he would be coordinating with the SLM/A on the delivery of aid supplies to the area. Pope Leo sent his condolences and said he was praying for those affected, according to a Vatican statement. https://www.reuters.com/sustainability/climate-energy/plea-help-after-landslide-wipes-out-sudan-village-killing-1000-2025-09-01/

2025-09-03 11:07

Sept 3 (Reuters) - Via Transportation is targeting a valuation of up to $3.50 billion in its initial public offering, the transit technology maker said on Wednesday, joining a wave of companies aiming to list their shares on U.S. exchanges this fall. Via and some of its existing investors are seeking to raise up to $471 million by offering 10.7 million shares priced between $40 and $44 apiece. Sign up here. IPO markets have resumed a long-awaited recovery amid an equity market rally fueled by robust tech earnings and growing expectations of interest rate cuts in the short term. The fall window kicked off on Tuesday with long-awaited road show launches. "Rate cuts are a nice tailwind, but much of the current momentum stems from pent-up demand after two to three years of minimal IPO activity," said Jeff Zell, senior research analyst at IPO Boutique. Blowout debuts from design software maker Figma (FIG.N) , opens new tab and crypto exchange Bullish (BLSH.N) , opens new tab have also enhanced the appeal of first-time share sales. At the top of its proposed range, Via's $3.5 billion targeted valuation would be at par with the one it secured in a 2023 funding round led by venture firm 83North. Rising urban congestion and environmental concerns have led to calls on administrations worldwide to develop sustainable mixed-mode public transit systems. Founded in 2012, New York-based Via's technology combines on-demand shared rides and intelligent routing to optimize public transit systems in hundreds of cities across more than 30 countries. Investment management firm Wellington Management has indicated interest in purchasing up to $100 million worth of shares in the IPO, Via said. Goldman Sachs, Morgan Stanley, Allen & Company and Wells Fargo are the lead underwriters for Via's offering. The company plans to list its shares on the New York Stock Exchange under the ticker symbol "VIA". https://www.reuters.com/technology/transit-tech-firm-via-transportation-targets-up-35-billion-valuation-us-ipo-2025-09-03/