2026-01-27 11:50
SHANGHAI/HONG KONG, Jan 28 (Reuters) - With gold prices setting new all-time highs this week, customers have been cramming into stores in Shanghai and Hong Kong that sell the precious metal, with some betting the price could rise even further. "There are still quite a lot of people buying it, because gold awareness is a long‑term trend and it’s still heading upwards," gold seller Zhao Jinhao said on Tuesday at a jewellery mall in Shanghai. Sign up here. "It’s risen from just over 20 yuan back in the 1980s to more than a thousand yuan now, and it has been on an upward trajectory the whole time." Gold prices surpassed $5,100 per ounce on Monday after a 62% surge in 2025. The record-breaking run has been propelled by central bank buying to reduce reliance on the U.S. dollar and strong demand across the board from buyers looking for a safe-haven asset after the tumultuous first year of U.S. President Donald Trump's second presidency. Analysts at Societe Generale said on Monday they expect to see gold reach $6,000/oz by year-end, a forecast they said was conservative because prices could well go higher. Sixty-eight-year-old Shanghai resident Wang Qiuqin appeared to agree, saying the "crazy" rise in prices had spurred her to visit a gold store to make a purchase. "If this keeps up, gold is still likely to go higher. I can still mentally accept the current price level, so I decided to come buy some." In Hong Kong, Simon Littmann, the executive manager of Swiss Investors Corporation Limited, which trades in precious metals such as gold and silver, said business in January this year was his best ever in around 20 years in the trade. “Last year was probably our second-busiest year, and this year is looking to get very busy, but we have supply problems," he said. The supply of small gold bars has been delayed due to strong demand and as refineries around the globe rush to boost production of the products for the retail sector, he added. While many others are also not deterred — China's central bank bought bullion each month last year — higher prices are still having an effect on demand. Wholesale gold demand in China fell 11% last year as higher prices and reforms that raised taxes weighed on jewelry demand despite more interest in investment-style bars and coins. Record prices are leading others to cash in. Dozens of people queued outside the door of the Chong Kee gold shop in Hong Kong’s central business district on Tuesday waiting for the chance to trade in gold and silver. Some had to wait hours to enter the premises, where they had trinkets like bracelets, necklaces, small statuettes and bars put onto scales to be weighed. "It will definitely go higher. Society is so chaotic and unstable now,” said Cherry Tam, a retiree who sold a few gold items given to her on her wedding day decades ago. “With the economy not so good, I can get back some money to spend." Dick Liu, a 79-year-old gold craftsman who has been in the industry for more than 50 years, said the uncertain times would continue to fuel the boom, something he had not seen in all his years in the industry. “Trump, being like this now, gold will keep going up. It won’t fall. He’s a madman, don’t you think so?” https://www.reuters.com/world/china/chinese-buyers-sellers-expect-gold-rush-continue-despite-record-prices-2026-01-27/
2026-01-27 11:31
NEW DELHI, Jan 27 (Reuters) - India and the European Union have concluded negotiations on a long-awaited free trade agreement as both sides seek to cushion the impact of strained ties with the United States. The pact paves the way for freer trade in goods and services between the 27-nation EU and India, together representing a market of roughly 2 billion people. Sign up here. Key details of the deal include: BENEFITS FOR EU EXPORTERS: - Indian tariffs on 30% of goods traded with EU to fall to zero immediately - Tariffs will be eliminated or reduced on over 90% of EU exports - EU firms to save up to 4 billion euros ($4.74 billion) a year in duties - Improved access for EU firms in financial and maritime services - Simplified customs rules and stronger intellectual property protection - India's duties on vehicles imported from EU to fall from 110% to 10% over five years, under a 250,000-vehicle annual quota, likely benefiting Volkswagen (VOWG.DE) , opens new tab, BMW (BMWG.DE) , opens new tab, Mercedes-Benz (MBGn.DE) , opens new tab and Renault (RENA.PA) , opens new tab. - India completely scraps tariffs on most industrial imports from EU, including machinery and electrical equipment (currently at 44%), chemicals (up to 22%) and pharmaceuticals (11%) BENEFITS FOR INDIAN EXPORTERS: - At launch of deal, the EU will scrap all tariffs on 90% of Indian goods - Zero tariffs to be extended to 93% of Indian goods within seven years - Partial cuts and quotas for about 6% of Indian goods - 99.5% of bilateral trade receives some form of tariff concession - India to keep autos and agriculture out of full tariff elimination - EU's average tariff rate falls from 3.8% to 0.1% - Tariffs cut to zero on key Indian exports to the EU, including marine products (currently at up to 26%), chemicals (12.8%), plastics/rubber (6.5%), leather/footwear (17%), textiles (12%), apparel (4%), base metals (10%), and gems and jewellery (4%), among a few others. CARS: QUOTAS AND EXCLUSIONS - EU cars priced below 15,000 euros ($17,800) excluded from the deal. - Cars above that threshold split into three segments each with quotas and separate tariffs. Tariffs on most cars cut to 30–35% at launch of deal, then phased down to 10%. Indian officials said this would be over five years while an EU official said it would be over 10. - Electric vehicle tariff cuts begin from year five - Final quotas will be 160,000 internal combustion engines and 90,000 electric vehicles from the EU. - No duty cuts outside quotas and no tariff reduction on Completely Knocked Down (CKD) kits STEEL AND CARBON RULES - India seeking improved access to tariff-free EU steel import quotas as an FTA partner, with the outcome due by June 30, ahead of EU rules taking effect on July 1. An EU official says India will get 1.6 million metric tons duty-free, although this is about half of what India has been exporting to the EU annually, with the bloc seeking to halve tariff-free steel imports overall. - No India-specific exemption from the EU's carbon duties, though India says it can negotiate if EU grants flexibility to any other nation. - A technical group will help Indian firms verify carbon footprints, alongside a separate agreement to ensure EU technical and financial support to help emission cuts in India AGRICULTURE: ACCESS WITH SAFEGUARDS - Indian tariffs on EU agri-food exports that attracted average duties of over 36%, cut or removed - Sharp cuts on tariffs on EU wines, spirits, beer, olive oil, processed foods and some fruits - Indian duties on premium wine will gradually fall from 150% to between 20% and 30%, with the rate in year one at 75%. For spirits, the rate will drop from as much as 150% to 40% over seven years, and over 10 years for gin. - Beef, rice, sugar, dairy and poultry excluded; EU food safety rules unchanged and safeguard clause to limit imports in case of market disruption. SERVICES, SUSTAINABILITY, DIGITAL TRADE - The EU gives India access to 144 services sub-sectors, India opens 102 sub-sectors to the EU, including financial, maritime and telecoms - Binding rules set on labour rights, environment, women’s empowerment and climate cooperation - Digital trade rules to support business while protecting privacy, security and public policy RULES AND NEXT STEPS - Rules of origin prevent third-country goods routing through India for tariff benefits - Disputes handled by independent panels with binding rulings - Draft texts to be published, followed by legal review, translation and approval by EU governments, the European Parliament and India, expected possibly within a year. ($1 = 0.8424 euros) https://www.reuters.com/world/india/details-eu-india-trade-deal-tariffs-quotas-market-access-2026-01-27/
2026-01-27 11:25
LONDON, 27 Jan (Reuters) - The pound edged higher against the U.S. dollar for the fourth consecutive day on Tuesday, underpinned partly by data that showed retail inflation picked up sharply in January, while UK political uncertainty simmered on. Sterling was last 0.12% higher against the dollar at $1.3696, hovering near a four-month high. Sign up here. Against the euro, the pound was last 0.12% lower to 86.72 pence to the euro. The dollar has been under pressure from an array of issues in recent weeks, including geopolitical and tariff uncertainty which reinvigorated the "sell America" trade last week, while traders have also been on alert regarding potential coordinated currency intervention by authorities in the United States and Japan. The pound meanwhile has strengthened, buoyed by strong domestic data last week that indicated a pickup in the economy. Figures from the British Retail Consortium on Tuesday showed that prices at major British retailers rose at the fastest pace in almost two years in January. "Any suggestion that inflation has peaked is simply not borne out by these figures," BRC Chief Executive Helen Dickinson said. The data could complicate decision-making for the Bank of England, which is broadly expected to keep interest rates unchanged when it meets next week. Markets show traders currently expect one rate cut by the middle of the year, with a strong chance of a second by December. However, political tensions have been growing with the Labour Party blocking Manchester Mayor Andy Burnham from returning to parliament. Burnham is widely seen as a potential challenger to Prime Minister Keir Starmer, whose leadership of the Labour Party has been called into question. The global moves have taken some heat away from domestic UK issues for sterling, said Nick Rees, head of macro research at Monex. "Sterling right now is benefiting from the distractions elsewhere in markets, but we think traders should be focused on the UK political situation, because that is really quite volatile," he said. "What looks like an emerging Labour civil war is not great for confidence, it's not great for stability, it's not great for political decision-making," Rees said, noting that the fiscal backdrop in the UK is already difficult. "So you add all that up, we see downside sterling risks as soon as markets start paying attention." https://www.reuters.com/world/uk/sterling-inches-higher-against-dollar-gaining-fourth-consecutive-day-2026-01-27/
2026-01-27 11:17
JAKARTA, Jan 27 (Reuters) - Overall GDP growth in Indonesia is expected to have met the 5.2% target for 2025 despite widespread destruction caused by floods late last year, though growth was estimated to have been quicker in the fourth quarter, the finance minister said on Tuesday. The 2026 growth target of 5.4% was also maintained for the $1.4 trillion economy, Purbaya Yudhi Sadewa said at a gathering of Indonesia's financial stability board. Sign up here. Bank Indonesia Governor Perry Warjiyo said his institution would continue to monitor for room to cut interest rates to support economic growth. He said rates were kept unchanged in recent months to maintain the stability of the rupiah. Indonesia's currency has weakened this month over concerns about central bank independence. Bank Indonesia would help it remain stable, including through market interventions, Warjiyo said. "In formulating monetary policy, we will always look at inflation, exchange rates, and economic growth data," Warjijo said. BI kept the benchmark 7-day reverse repurchase rate IDCBRR=ECI , opens new tab at 4.75% last week, where it has been since September. It has cut rates by 150 basis points from September 2024 to September 2025. Warjiyo said the rupiah is expected to stabilise with a tendency to strengthen. https://www.reuters.com/world/asia-pacific/indonesias-2025-gdp-growth-estimated-targeted-52-finance-minister-says-2026-01-27/
2026-01-27 11:16
Jan 27 (Reuters) - United Parcel Service (UPS.N) , opens new tab forecast higher annual revenue on Tuesday, as it reduces low-margin deliveries for its biggest customer, Amazon, and shifts toward higher-paying shipments. The world's largest package delivery company expects 2026 revenue to be $89.7 billion, compared to the $88.7 billion it reported last year. Sign up here. It forecasts adjusted operating margin of 9.6% for 2026. "Looking ahead, upon completion of the Amazon glide-down, 2026 will be an inflection point in the execution of our strategy to deliver growth and sustained margin expansion," CEO Carol Tome said in a statement. Shares of the company were up 3.7% in premarket trading, while rival FedEx (FDX.N) , opens new tab gained about 1%. UPS reported fourth-quarter consolidated revenue of $24.5 billion, compared with $25.3 billion a year earlier. https://www.reuters.com/business/retail-consumer/ups-forecasts-higher-2026-revenue-2026-01-27/
2026-01-27 11:15
SANTIAGO, Jan 27 (Reuters) - In metal cages installed on the sea floor around the small island of Locos in northern Chile, divers stock bottles of wine as part of a new underwater storage program. A consistent temperature throughout the year of about 11 degrees Celsius (52 degrees Fahrenheit), negative pressure and just the right amount of light re-create the "cave effect" of traditional underground wine cellars. Sign up here. "We are gradually finding certain products that work very well underwater," said Alejandro Soza, director of the ODC diving center in the Coquimbo region and whose company, Cava Indus 8, is behind the initiative. Bottles are submerged from 10 to 20 meters (33 to 66 feet) deep for eight months to a year and surrounded by calcareous sediments, ideal for a stable, protective environment that's great for long-term aging. "The tannins feel smoother, softer, the body feels more elegant," said Brazilian sommelier Luana Balbine, while tasting one of the wines at the diving center. White and cool-climate grape varieties such as Chardonnay, Sauvignon Blanc, and Pinot Noir respond best to underwater aging, although the method can be applied to other varieties, the center said. Preserving wine underwater has been in practice for decades, but the project is novel for Chile, one of the world's top wine exporters, where the wine industry is a cornerstone of national identity and a major economic driver. https://www.reuters.com/sustainability/land-use-biodiversity/under-sea-chilean-company-ages-wines-underwater-cellars-2026-01-27/
