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/

2025-09-03 11:05

Fiscal worries send super-long bond yields higher Moves a warning to governments - Deutsche Bank CEO Japanese state borrowing costs hit record highs UK 30-year gilt yields rise to new post-1998 peak Gold races above $3,500 amid safe-haven scarcity LONDON Sept 3 (Reuters) - A sell-off in global long-dated bonds sent Japan's government borrowing costs to record highs on Wednesday, as mounting concerns over government debt sustainability and long-term inflation also rattled investors in Europe. Spot gold hit an all-time high of $3,546.99 as the rush out of long-term government debt, traditionally considered low-risk, sparked a hunt for alternative safe-haven assets. Sign up here. The 30-year Japanese government bond yield hit an unprecedented 3.255% on Wednesday, following a sell-off in similarly dated British gilts , U.S. Treasuries and Canadian bonds in the prior session. "The economic reforms needed to really cover increasing debt are lacking, and the capital market sees that," Deutsche Bank chief executive Christian Sewing said about the long-dated debt sell-off in comments at a conference on Wednesday morning. The trend may continue, he added, "if we see a further increase in political instability, if we don't see any reforms". British finance minister Rachel Reeves is expected to raise taxes in her autumn budget to remain in line with her fiscal targets, while in France Prime Minister Francois Bayrou looks set to lose a confidence vote as opposition parties balk at his spending cuts. In Japan, government departments have just presented record budget requests and senior aides to Prime Minister Shigeru Ishiba, including Secretary-General Hiroshi Moriyama, have offered to resign following their party's defeat in July's upper house election. On Wednesday, British 30-year gilt yields rose 6 basis points to a fresh post-1998 high of 5.752%, before recovering to last trade at 5.67%. Germany's 30-year yield was 2 bps lower at 3.398%, remaining close to its highest level in 14 years. The global trend would likely feed on itself, some analysts said, because higher yields in Japan meant Japanese savers who had for decades looked to overseas assets for income now had fewer reasons to buy non-domestic government debt. "Global bond markets no longer benefit from the Japanese hunt for yield," L&G Asia head of investment strategy Ben Bennett said. "It’s a perfect storm for long-dated bonds and a headache for governments." RIPPLE EFFECTS The gap between 2-year and 30-year U.S. government bond yields stands at about 133 bps, around its highest since December 2021, while the comparable measure in Britain is the highest since 2017. The 30-year U.S. Treasury yield briefly rose above 5% during Asia trade and last stood at 4.987% and, with yields at this level, investors are starting to watch for spillovers into other asset classes. "The 5% level is going to be impactful to equities," said Josh Chastant, portfolio manager, public markets at GuideStone Funds. "And you are starting to see some of that pressure." Britain's pound briefly fell to a four-week low of $1.3334 , before recovering a little. Japan's yen was a touch softer at 148.60 per dollar after sliding 0.8% in the previous session. European and U.S. stock markets remained unscathed as traders pinned their hopes on an anticipated U.S. rate cut later this month, with Europe's STOXX index (.STOXX) , opens new tab up 0.7% and U.S. S&P 500 futures about 0.4% higher. But Japan's broad Topix share index (.TOPX) , opens new tab closed almost 1.1% lower and MSCI's broad index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) , opens new tab dropped 0.4%. TARIFF TREMORS European purchasing managers indexes on Wednesday, viewed as barometers of overall economic conditions, showed expansion in Germany had slowed and France remained in contractionary territory as businesses dealt with U.S. President Donald Trump's unpredictable tariff policies. Trump on Tuesday said his administration would ask the Supreme Court for an expedited ruling on tariffs that an appeals court found illegal last week. The court allowed for the tariffs to stay in place until October 14. U.S. manufacturing also contracted for a sixth straight month in August as factories grappled with the impact of import tariffs, data showed on Tuesday, helping to drive Brent crude oil 1.9% lower to $67.84 a barrel on Wednesday. Friday's U.S. nonfarm payrolls data will be preceded by data on job openings and private payrolls, offering an update on the labour market that has become the focus of policy debate at the Fed. https://www.reuters.com/world/china/global-markets-wrapup-5-2025-09-03/

2025-09-03 10:54

Eight OPEC+ countries to meet on Sunday OPEC+ could also pause hikes for October, source says No immediate comment received from OPEC or Saudi authorities LONDON/MOSCOW, Sept 3 (Reuters) - OPEC+ will consider further raising oil production at a meeting on Sunday, two sources familiar with the discussions said, as the group seeks to regain market share. OPEC+ has reversed its strategy of output cuts from April and has already raised quotas by about 2.5 million barrels per day, about 2.4% of world demand, to boost market share and under pressure from U.S. President Donald Trump to lower oil prices. Sign up here. But those increases have failed to bring down oil prices, which trade near $70 a barrel supported by Western sanctions on Russia and Iran, encouraging further production gains in rivals such as the United States. Another output boost would mean OPEC+, which pumps about half of the world's oil, would be starting to unwind a second layer of cuts of about 1.65 million barrels per day, or 1.6% of world demand, more than a year ahead of schedule. Eight OPEC+ countries are due to hold an online meeting on Sunday expected to decide on October output. OPEC+ includes the Organization of the Petroleum Exporting Countries plus Russia and other allies. There is also a chance, some analysts and an OPEC+ source said, that OPEC+ could pause the increases for October. A final decision has not been made, the OPEC+ source said. OPEC headquarters and authorities in Saudi Arabia did not immediately respond to requests for comment. Brent crude was trading near $68 on Wednesday, down over 1% on the day but up from a 2025 low of near $58 in April. As well as sanctions, the OPEC+ hikes falling short of the pledged amounts have also supported prices, analysts have said. Until April, OPEC+ had been curtailing production for several years to support oil prices. At their last meeting in August, the eight raised production by 547,000 bpd for September, an early reversal of its largest tranche of output cuts plus a separate output hike for the United Arab Emirates amounting to about 2.5 million bpd. The next output cut layer of 1.65 million bpd is in place until the end of 2026, as is another 2 million bpd of cuts by the whole group. https://www.reuters.com/business/energy/opec-consider-further-oil-output-hike-sunday-sources-say-2025-09-03/

2025-09-03 10:52

LONDON, Sept 3 (Reuters) - What matters in U.S. and global markets today By Mike Dolan , opens new tab, Editor-At-Large, Finance and Markets Sign up here. Anxieties in long bonds continued to unsettle world markets on Wednesday, with 30-year government borrowing rates in Japan, Europe and the United States all spiking. The U.S. long bond touched 5% for the first time since mid-July. A mix a concerns about rising public debt piles, the European budget season, Federal Reserve independence, the week's U.S. jobs numbers and even another potential round of U.S. debt ceiling battles all appear to have conspired to jar the back end of the bond market. Meanwhile, Wall Street stocks had another bad day, with a 0.7% drop in the S&P 500. But futures perked up on Wednesday as Google-parent Alphabet surged 6% premarket after a Federal judge spared it from a forced breakup in a pivotal antitrust case over its Chrome browser. * Japan's 30-year government bond yield hit a record high, Germany's 30-year hit a 14-year high, French 30-year debt hovered near 17-year highs and Britain's 30-year gilt clocked its highest since 1998. Societe Generale said it expects more than 100 billion euros in European bond issuance this month and next. UK finance minister Rachel Reeves said on Wednesday that she would deliver her annual budget on November 26, with a focus on keeping a "tight grip" on public spending. Bonds rallied later, however, after a retreat in crude oil prices when Reuters reported OPEC would this weekend consider another output hike. * Gold prices continued to push further into record territory above $3,500, with global military and geopolitical tensions adding to debt market disturbances and long-term inflation worries. Chinese President Xi Jinping said the world faced a choice between peace or war at a massive military parade in Beijing, flanked by Russia's Vladimir Putin and North Korea's Kim Jong Un in an unprecedented show of force. The dollar slipped back from Tuesday's highs against the euro, yen and sterling - with Friday's critical August U.S. jobs release preceded today by the July job openings number. * Alphabet's post-bell surge on the Chrome antitrust ruling leads the single stock moves. Investors cheered the judge's ruling, which also allows Google to keep making lucrative payments to Apple that antitrust enforcers said froze out search rivals. Apple shares rose 3% out of hours. On Tuesday, shares of Kraft Heinz dropped 7% after the company said it will split into two companies, one focused on groceries and the other on sauces and spreads. With the food sector seemingly in play, shares of PepsiCo gained 1% after Elliott Management disclosed a $4 billion stake in the beverages company. Today's Market Minute * Chinese President Xi Jinping warned the world was facing a choice between peace or war at a massive military parade in Beijing on Wednesday, flanked by Russia's Vladimir Putin and North Korea's Kim Jong Un in an unprecedented show of force. * Kraft Heinz (KHC.O) will split into two companies, one focused on groceries and the other on sauces and spreads, it said on Tuesday, dismantling a packaged goods giant that never achieved the growth expected when it was formed a decade ago. * Holiday spending by U.S. consumers is set for its steepest drop since the pandemic as shoppers — particularly Gen Z — pull back amid economic uncertainty, a PricewaterhouseCoopers survey showed. * Data going back decades shows that, on average, September is the worst month for U.S. stocks. So should investors brace for another bumpy ride this year? Almost certainly, writes ROI markets columnist Jamie McGeever, and not just because of the "September effect." * China's net imports of refined copper dropped to a one-year low in July as the world's largest buyer found itself in competition with the U.S. for metal. Find out more in the latest piece from ROI columnist Andy Home. Chart of the day Reuters surveyed over 100 foreign exchange forecasters between August 29 and September 3 on U.S. dollar rates versus major currencies as well as the Chinese yuan, Russian rouble, Indian rupee, Brazilian real, Turkish lira and many others. The median forecast over the next year is for a 7.4% further rise in Japan's yen and 2.5% rise of the euro. Today's events to watch * U.S. July JOLTS job openings data (10:00 AM EDT), July factory goods orders (10:00 AM EDT); Canada Q2 labor productivity * Federal Reserve releases Beige Book on economic conditions (2:00 PM EDT) Minneapolis Fed President Neel Kashkari and St. Louis Fed President Alberto Musalem both speak * U.S. corporate earnings: Salesforce, Dollar Tree, Campbell's, Hewlett Packard -- Want to receive the Morning Bid in your inbox every weekday morning? Sign up for the newsletter here. You can find ROI on the Reuters website , opens new tab, and you can follow us on LinkedIn , opens new tab and X. , opens new tab (The opinions expressed here are those of the author, a columnist for Reuters) https://www.reuters.com/business/finance/global-markets-view-usa-2025-09-03/