2025-09-01 10:06

MOSCOW, Sept 1 (Reuters) - Russian President Vladimir Putin on Monday proposed that members of the 10-nation Shanghai Cooperation Organisation (SCO) should sell joint bonds, a step that would mark a major deepening of their economic cooperation. At a summit of the group in China, Putin also floated the idea of a joint payments system for trade settlements. Sign up here. The SCO, set up in 2001, is the successor to the Shanghai Five, a grouping of China, Russia, Kazakhstan, Kyrgyzstan and Tajikistan, set up in 1996. It now also includes India, Pakistan, Iran, Belarus and Uzbekistan. "We advocate the issuance of joint bonds of member states," Putin told SCO heads of state in China's northern port city of Tianjin. He also said he supported "the creation of our own payment, settlement and depository infrastructure" and "the formation of a bank of joint investment projects". "All this will increase the effectiveness of our economic exchanges and protect them from fluctuations in the external environment," Putin said. Russia has been pushing for settlement mechanisms which avoid the U.S. dollar and the euro, after Western sanctions on payment systems and Chinese banks disrupted Russian trade following the 2022 invasion of Ukraine. Putin said the SCO economies had grown on average by 5% in 2024. https://www.reuters.com/business/finance/putin-proposes-shanghai-cooperation-organisation-members-should-issue-joint-2025-09-01/

2025-09-01 09:44

Sept 1 (Reuters) - Sterling rose against a weakening dollar on Monday but was on track for a 3-day falling streak versus the euro, as investors awaited U.S. economic data later this week amid renewed concerns over Britain’s fiscal outlook. Weakness in the pound has coincided with a decline in British bank shares and an uptick in benchmark Gilt yields on Friday. Sign up here. "The UK is in a fiscal bind," said Stephen Jen, CEO of Eurizon Capital, recalling that the 30-year gilts yields were around their highest levels since the late-1990s while fiscal spending remains at a Maastricht-busting level of 4.4% of gross domestic product. "In our view, its fiscal revenues are about to move to the bad side of the Laffer Curve, higher tax rates will probably start to lead to lower tax collection," he added. The yield on the 30-year gilt hit 5.646% on Monday. It reached 5.649% in early April, its highest since 1998. The pound was up 0.18% to $1.3528 and was down 0.14% to 86.65 pence per euro . The greenback hit a 5-week low on Monday as investors looked ahead to a raft of U.S. labour market data this week that could affect expectations for the Federal Reserve's easing path. Investors will closely watch the questioning of Bank of England Monetary Policy Committee members by the Treasury Committee later this week, looking for guidance on future rate cuts or possible changes to the central bank’s quantitative tightening program. Parliament returns from its summer recess this week, and an announcement on the date of the Autumn Budget could follow. “If the UK government wants the Bank of England to be able to react, by cutting rates, to a fiscally tight budget, it will have to announce the budget date this week,” said Chris Turner, head of forex strategy at ING, recalling that the Office for Budget Responsibility requires 10 weeks' notice for the budget, and the November BoE meeting is held on the 6th. (This story has been corrected to say 30-year gilt yields were near their highest levels since the late 1990s, not hit that milestone on Monday, in paragraphs 3 and 5) https://www.reuters.com/world/uk/sterling-track-three-day-slide-versus-euro-amid-fiscal-concerns-2025-09-01/

2025-09-01 08:56

LONDON, Sept 1 (Reuters) - British lenders approved the most mortgages in July since January, according to Bank of England data published on Monday that added to signs of a stabilisation in the housing market after volatility caused by the end of a tax break. Banks and building societies signed off on 65,352 mortgages during the month, more than the median forecast of 64,400 in a Reuters poll of economists. Sign up here. The housing market dipped immediately after the expiry of a tax break for some homebuyers in April and appears to have largely settled since then. However, figures published earlier on Monday by the Nationwide Building Society showed an unexpected fall in house prices in August as buyers struggled to afford high valuations. The BoE data also showed stronger-than-expected increases in mortgage and consumer borrowing during July. Consumer borrowing rose by 7.0% in the 12 months to July, the biggest such increase since the 12 months to October 2024. https://www.reuters.com/world/uk/uk-lenders-approved-most-mortgages-six-months-july-2025-09-01/

2025-09-01 08:45

MUMBAI, Sept 1 (Reuters) - The Indian rupee dropped to a record low against the U.S. dollar on Monday, reflecting mounting concerns over the higher U.S. tariffs on Indian goods and the broader economic implications for the South Asian country. The rupee declined to 88.33 to the U.S. dollar, dipping past the 88.3075 lifetime low hit in the previous session. The Reserve Bank of India stepped in on Friday to support the rupee, yet letting it breach 88 caught most market participants off guard. Sign up here. "Unless we see some improvement in trade relations between India and the U.S., we cannot expect any stability in the rupee, and we could see test of fresh lows frequently," said VRC Reddy, treasury head at Karur Vysya Bank. "Everything now depends upon the RBI, on how they plan to manage the markets," Reddy said. The RBI has a track record of stepping in to curb excessive rupee volatility, particularly during periods of heightened uncertainty or rampant speculative activity. While the RBI has repeatedly emphasized that it does not target a specific exchange rate, its actions are closely monitored and can significantly influence short-term rupee dynamics. HEFTY US TARIFFS The U.S. last week raised tariffs on Indian products by 25%, bringing the country’s total duty burden to 50%. Higher tariffs are expected to dent India's export competitiveness, particularly in sectors such as textiles and engineering goods. A slowdown in exports could weigh on corporate revenues and profits, potentially affecting hiring and investment decisions. With the tariffs increasing uncertainty over corporate earnings and India's broader growth outlook, foreign portfolio investors may reconsider allocations to Indian equities. Over the past three sessions, foreign investors pulled $2.4 billion from Indian equities. With exports expected to slow, the trade deficit is likely to widen, putting pressure on the current account. The country may have to rely more on capital inflows, which have already been weak and could remain under pressure amid the uncertain backdrop. https://www.reuters.com/world/india/india-rupee-hits-all-time-low-us-tariff-strain-rbi-under-lens-2025-09-01/

2025-09-01 07:57

Xi, Putin and Modi talk in China Putin calls Modi his "dear friend" Modi rides in Putin's limousine Modi discussed cooperation in all areas MOSCOW/NEW DELHI, Sept 1 (Reuters) - India's Narendra Modi told Vladimir Putin on Monday that India and Russia stood side by side even in difficult times after the Kremlin chief called the Indian prime minister his "dear friend" and gave him a lift in his armoured limousine. China and India are the biggest buyers of crude oil from Russia, the world's second largest exporter. Trump has imposed additional tariffs on India over the purchases but there is no sign that India or China are going to stop them. Sign up here. On the sidelines of the Shanghai Cooperation Organisation (SCO) meeting in China's port city of Tianjin, Modi held Putin's hand as they walked towards Chinese President Xi Jinping. All three smiled as they spoke, surrounded by translators. Later, Modi posted a picture on X of him and Putin inside the armoured Aurus limousine used by the Russian leader. Putin often travels with the Aurus on foreign trips and has occasionally offered rides to fellow leaders - or even gifted the vehicle, as he did to North Korean leader Kim Jong Un in 2024. "Even in the most difficult situations, India and Russia have always walked shoulder to shoulder," Modi said. "Our close cooperation is important not only for the people of both countries but also for global peace, stability and prosperity." At the bilateral meeting, Putin addressed Modi in Russian as "Dear Mr Prime Minister, dear friend." "Russia and India have maintained special relations for decades, friendly and trusting. This is the foundation for the development of our relations in the future," Putin said. Modi said he welcomed recent efforts aimed at stopping the war in Ukraine, which he hoped would end as soon as possible. On Saturday, Modi reaffirmed his support for a peaceful settlement during a telephone conversation with Ukrainian President Volodymyr Zelenskiy, Modi's office said. "Had an excellent meeting with President Putin," Modi said on X on Monday, adding that they had discussed cooperating "in all sectors, including trade, fertilisers, space, security and culture." "Our Special and Privileged Strategic Partnership remains a vital pillar of regional and global stability," Modi said. https://www.reuters.com/world/china/modi-says-russia-india-stand-together-even-difficult-times-2025-09-01/

2025-09-01 07:42

Eric Trump praises Metaplanet CEO's crypto push, social media videos show Eric Trump named adviser to Metaplanet in March Metaplanet shares surged 740% in past year, but are down sharply recently Firm plans to sell up to 550 million shares for about $884 million TOKYO, Sept 1 (Reuters) - Eric Trump took the stage in Tokyo on Monday to throw his support behind Japanese bitcoin treasury company Metaplanet (3350.T) , opens new tab, as the U.S. president's family expands its crypto ventures internationally. The second son of President Donald Trump was named in March as an adviser to Metaplanet, which holds more than $2 billion in bitcoin, and his attendance at the company's extraordinary shareholders' meeting followed an appearance last week at the Bitcoin Asia conference in Hong Kong. Sign up here. Metaplanet called the meeting to approve a plan that would allow it to sell up to 550 million new shares overseas for 130.3 billion yen ($884.41 million), with the bulk of the proceeds to be spent on buying more bitcoin. Three people who came out of the meeting held in the Shibuya area of central Tokyo said the capital-raising plan was approved. Metaplanet declined to comment on Eric Trump's involvement in the meeting, when Reuters contacted the company before the event began. It did not respond to a subsequent email seeking comment on the capital-raising vote. A representative for Eric Trump did not respond to requests for comment. Donald Trump has promised to be the "crypto president", saying he backs the asset class because it can improve the banking system and increase the dominance of the U.S. dollar. Some of Trump's businesses in areas such as crypto, which have added substantially to his wealth, benefit from U.S. policy shifts under him and have invited criticism. American Bitcoin, a miner of the cryptocurrency founded by Eric Trump and his brother Donald Trump Jr., is aiming to list on the Nasdaq this month. In Hong Kong, Eric Trump expressed confidence the cryptocurrency would reach $1 million in value within several years. Bitcoin traded at $108,046.79 on Monday, down from its record of $124,480.82 touched last month. COSTUMES AND FOOD TRUCKS Previously a hotel operator, Metaplanet's pivot into crypto has paid off handsomely. Citing Michael Saylor's bitcoin treasury firm Strategy MSTR.O , opens new tab as an inspiration, founder and chief executive Simon Gerovich liquidated most of Metaplanet's hotel assets, already in the doldrums due to the COVID-19 pandemic, and piled into the cryptocurrency starting in April 2024. At the meeting venue on Monday, it was a festive scene, with people in costumes lined up at the entrance, food trucks assembled, and a K-Pop band due to perform. Media were not allowed to observe the meeting. In the afternoon, Gerovich and Eric Trump took the stage wearing matching Metaplanet jerseys, according to shareholder videos posted on social media. "I think a lot of people, Simon included, and certainly me included, would say that Michael Saylor kind of led the front in the United States," Eric Trump said, referring to the push into cryptocurrencies. "There's no question that Simon's led the front in all of Asia." Selling bonds and warrants, Metaplanet has continued to buy bitcoin and is now the seventh-largest holder among public treasuries globally, according to BitcoinTreasuries.net. It announced on Monday it added another 1,009 coins to bring its total hoard to 20,000. Its shares have surged about 740% in the past 12 months, compared with a 13% advance in the benchmark Topix (.TOPX) , opens new tab index. Even so, the stock has tumbled by more than half since its peak in June, and was down 5.5% on Monday. Metaplanet appointed Eric Trump earlier this year to a newly formed board of advisers, calling him a "leading voice and advocate of digital asset adoption worldwide". The company, which trades on the Standard section of the Tokyo Stock Exchange, was previously known as Red Planet Japan and focused on hotel operations. Before that, it was a wholesaler of music CDs. The company's subsidiary, Red Planet Hotels Japan, filed for bankruptcy in May 2024. ($1 = 147.3300 yen) https://www.reuters.com/world/asia-pacific/eric-trump-takes-stage-japan-bitcoin-firm-metaplanet-votes-capital-plan-2025-09-01/