2025-12-01 10:13
LONDON, Dec 1 (Reuters) - British lenders approved more mortgages than expected in October, despite concerns about finance minister Rachel Reeves' budget, and consumer credit grew at a slower pace than in September, Bank of England data showed on Monday. The BoE said 65,018 mortgages were approved in October, down from 65,647 in September and the lowest since May. Economists polled by Reuters had pointed to 64,200 approvals during the month. Sign up here. Reeves raised taxes in last week's budget with higher levies on expensive homes among the measures announced last week. The BoE's data showed approvals for people looking to re-mortgage fell by the most in October since February. Net mortgage lending - which reflects completed house purchases - fell to a net 4.273 billion pounds compared with a rise of 5.223 billion pounds in September. Simon Gammon, managing partner at Knight Frank Finance, said uncertainty about tax rises and a "steady drip of policy leaks" hit sentiment in the housing market. "That said, the fall in approvals was small. Monthly transaction activity has been broadly in-line with pre-pandemic levels since the summer, which is a display of resilience given the weakening economy and the uncertain fiscal outlook. Aspects of that uncertainty have now passed and the Bank of England looks on course to cut the base rate in December." The BoE's data also showed consumers borrowed at a slower rate ahead of Reeves' tax and spending plan. Net consumer borrowing rose by 1.1 billion pounds ($1.45 billion) in October, less than the 1.35 billion-pound forecast in the Reuters poll of economists. The increase was below September's 1.398 billion pound rise, leaving the annual rate of consumer credit growth unchanged at 7.2%, joint-highest since October 2024. Official data published ahead of the budget showed a drop in retail sales and consumer confidence in October. ($1 = 0.7561 pounds) https://www.reuters.com/world/uk/uk-lenders-approve-more-mortgages-than-expected-october-2025-12-01/
2025-12-01 07:20
BANGKOK, Dec 1 (Reuters) - Thailand's central bank is planning measures to ease the upward pressure on the baht , including having banks tighten their controls on gold-related foreign exchange transactions and requiring major gold traders to supply their transaction data. The baht has strengthened by 7% against the dollar so far this year to be Asia's second-best performing currency. The baht's appreciation is seen as a threat to the competitiveness of the export and tourism sectors. Sign up here. The Bank of Thailand is closely monitoring the baht and will act on any volatility to reduce the impact on businesses, it said in a statement. The BOT said it will propose the Finance Ministry increase the limit for foreign income that does not need to be repatriated to $10 million per transaction, up from the current $1 million per transaction, to take effect this month. The higher limit would provide greater flexibility for the private sector in managing foreign currency and ease the pressure on the baht to rise by reducing the amount of foreign exchange being brought into the country. Earlier on Monday, central bank governor Vitai Ratanakorn said he saw room to cut interest rates, but added such a move had only a limited impact on an economy facing structural problems. The central bank has cut its policy rate four times over the past year, taking it to a three-year low, to support a sluggish economy. Its next policy review is on December 17, and some economists expect a further rate reduction. It unexpectedly left the key rate (THCBIR=ECI) , opens new tab unchanged at 1.50% at its review in October. https://www.reuters.com/sustainability/boards-policy-regulation/thai-central-bank-planning-measures-ease-strong-baht-sees-room-rate-cuts-2025-12-01/
2025-12-01 07:17
European firms look to move supply chains due to export controls 40% of respondents say China is processing export licenses slowly Survey casts doubt on optimism over Trump-Xi summit in Korea, analyst says BEIJING, Dec 1 (Reuters) - China's tightening export controls are pushing European firms to explore new supply chain capacity outside of the world's second-largest economy, a European lobbying group said on Monday, seeking cover from the U.S.-China trade war. The European Union Chamber of Commerce in China said one in three member companies was looking to shift sourcing away from China due to Beijing's export control regime, with 40% of its flash survey's respondents reporting that the commerce ministry is processing export licences more slowly than promised. Sign up here. "China's export controls have increased the uncertainty felt by European businesses operating in the country, with companies facing the risks of production slowdowns or even stoppages," said Jens Eskelund, the chamber's president. The curbs have "added more pressure to a global trade system that was already under a great deal of stress," he added. Some 130 companies participated in the survey, the chamber said, which counts German automakers BMW (BMWG.DE) , opens new tab and Volkswagen (VOWG.DE) , opens new tab, Finnish telecommunications maker Nokia and French oil major TotalEnergies (TTEF.PA) , opens new tab as members. Beijing shocked the U.S. in October when it threatened even tighter controls over rare-earth exports, underscoring China's willingness to flex its muscles to keep Washington pressured in trade talks. The move raised fresh concerns among European companies that their supply chains could again be upended as they had been by similar curbs in April. April's curbs forced some EU automakers to shut down production lines, as Beijing's move to suspend exports of a wide range of rare earths and related magnets - seemingly to squeeze U.S. military contractors and automakers - caused supplies to dry up globally. "These survey results are significant because they paint a picture that runs counter to the post-Busan summit optimism," said Alfredo Montufar-Helu, a managing director at Ankura Consulting. He was referring to a pause in Beijing's new export curbs negotiated at a U.S.-China summit in the South Korean city of Busan. "The reality is that the deal was not signed in ink: Washington and Beijing are still debating the scope of concessions, while the EU is pushing for inclusion. Implementation is taking time, and in that gap, global supply chains are paying the price." Nearly 70% of respondents to the chamber's flash survey said their overseas production facilities depended on Chinese components covered by the export control regime, while 50% of exporting firms reported that their suppliers or customers made goods that were subject to the controls or would be soon. EU firms said that the commerce ministry's licence-application process was taking longer than the promised 45 days, with respondents also taking issue with its lack of transparency and disclosure requirements. They also raised concerns about potential intellectual property theft. The survey also provided redacted examples of firms that were impacted by Beijing's export controls, including one that estimated the measures would lead to costs totalling 20% of its global revenue this year, while another said it expected to incur costs in excess of 250 million euros ($289.8 million). But 56 out of the 131 European firms that answered the survey said the export controls would have no impact, suggesting some sectors remain insulated. https://www.reuters.com/business/autos-transportation/china-export-controls-push-european-firms-move-supply-chains-2025-12-01/
2025-12-01 07:02
BOJ to weigh 'pros and cons' of rate hike in December, Ueda says Rate hike is easing of accelerator, not applying brakes -Ueda Yen, bond yields rise as markets raise bets of December hike BOJ to offer more clarity on distance from neutral rate after hike to 0.75% -Ueda NAGOYA, Dec 1 (Reuters) - The Bank of Japan will consider the "pros and cons" of raising interest rates at its next policy meeting, Governor Kazuo Ueda said on Monday, giving the strongest signal yet of a hike later this month. The yen and bond yields rose after the remarks, which led markets to price in a roughly 80% chance of a rate hike at the December 18-19 meeting - compared with around 60% last week. Sign up here. In a speech to business leaders in the city of Nagoya, Ueda voiced confidence that Japan's economy will rebound from a contraction in the third quarter with the hit from U.S. tariffs proving smaller than initially feared. With tariff impact worries receding, the likelihood of the BOJ's economic and price projections being met is rising, Ueda said, signalling conditions for a hike were falling into place. "The BOJ is at the stage where it should examine whether firms' active wage-setting behaviour will continue," which is key to how soon it will raise the policy rate, Ueda said. Labour shortage is more acute, corporate profit remains high and the main business lobby has called on members to continue raising wages, he said. The BOJ was "actively collecting" data on the wage outlook ahead of its December policy meeting, he added. "We will examine and discuss economic and price developments at home and abroad, as well as market moves ... and consider the pros and cons of raising interest rates," Ueda said. The yen rose 0.4% to a session high of 155.49 per dollar after Ueda's remarks. The yield on the two-year Japanese government bond - the most sensitive to the BOJ's policy rate - rose 2 basis points to 1.01%, its highest since June 2008. "Ueda essentially pre-announced a December hike," said Naomi Muguruma, chief bond strategist at Mitsubishi UFJ Morgan Stanley Securities. "With a December hike pretty much baked in, standing pat would cause huge market turbulence." NOT APPLYING THE BRAKES The BOJ exited a massive, decade-long stimulus programme last year and raised its policy rate to 0.5% in January on the view inflation was on the cusp of sustainably meeting its 2% target. While the bank has kept the rate steady since, a growing number of board members either proposed a hike, or called for doing so as stubbornly high food prices keep consumer inflation beyond 2% for well over three years. A Reuters poll last month showed a slim majority of economists expect a rate hike in December. All project an increase to 0.75% by March. With real interest rates deeply negative, another hike would still leave borrowing costs low and be tantamount to "easing off the accelerator" rather than "applying the brakes", Ueda said. "Being too late in adjusting the degree of monetary support could cause very high inflation and force us to respond rapidly, which would cause turmoil," Ueda told a news briefing after the speech. Ueda offered no clues on how high the BOJ could eventually raise rates. He said the BOJ will provide more information on how far the rate is from levels deemed neutral to the economy, once it raises the policy rate to 0.75%. The slow pace of hikes has been a factor behind a weakening yen, which has been a headache for government policymakers concerned about higher import costs stoking inflation. Asked about the yen on Monday, Ueda said the weakness is likely to accelerate consumer inflation - a factor to which the BOJ must be vigilant in setting policy. Renewed declines in the yen has raised the prospect of currency intervention, highlighting the administration's concern over the negative impact of the currency's fall. Sources have told Reuters the BOJ is preparing markets for a possible rate hike as soon as December, as worries about sharp yen falls return and political pressure to keep rates low fades. https://www.reuters.com/world/asia-pacific/boj-consider-pros-cons-rate-increase-december-meeting-ueda-says-2025-12-01/
2025-12-01 07:02
Silver hits all-time high of $58.83 per ounce Fed Chair Jerome Powell to speak later in the day Gold & silver in a strong sideways-to-uptrend, analyst says Dec 1 (Reuters) - Gold prices rose to a six-week high on Monday, supported by growing expectations of U.S. interest rate cuts and a sliding dollar, while silver struck a record high ahead of key U.S. economic data. Spot gold was up 0.3% at $4,241.27 per ounce, as of 1:44 p.m. ET (1844 GMT), its highest since October 21. U.S. gold futures for February delivery settled 0.5% higher to $4,274.80. Sign up here. Silver was up 3.8% to $58.57 per ounce, after hitting an all-time high of $58.83 earlier. The white metal has risen over 100% so far this year. The U.S. dollar slipped to a two-week low, making gold more affordable for holders of other currencies. "The underlying environment of expectations of further rate cuts, along with inflationary pressure still above the Fed target ... is still the underlying support in gold and silver," said David Meger, director of metals trading at High Ridge Futures. Traders have increased December rate-cut bets to an 87% probability, following softer U.S. economic data and dovish remarks from Fed officials, including Governor Christopher Waller and New York Fed President John Williams. FEDWATCH Lower interest rates tend to favor non-yielding assets such as gold. Investors are also focusing on key U.S. data this week, including November ADP employment figures on Wednesday and the delayed September Personal Consumption Expenditures (PCE) Index, the Fed's preferred inflation gauge, due Friday. Fed Chair Jerome Powell's remarks later on Monday are also expected to offer further policy clues. Meanwhile, the expectation that the next Fed Chair is going to be more dovish than previous ones is also supporting gold and silver, Meger said. White House economic adviser Kevin Hassett said on Sunday that, if chosen, he would be happy to serve as the next Fed chairman. Treasury Secretary Scott Bessent indicated a new chair could be named before Christmas. "We still view gold and silver in a strong sideways to higher uptrend," Meger said. Among other precious metals, platinum was down 0.7% to $1,660.69, while palladium fell 2.1% to $1,431.52. https://www.reuters.com/world/india/gold-climbs-six-week-high-risk-off-sentiment-equities-lower-dollar-2025-12-01/
2025-12-01 06:54
SEOUL, Dec 1 (Reuters) - The chief of South Korea's financial market watchdog said on Monday authorities would review protection measures for retail investors regarding foreign exchange risks amid persistent weakness in the won currency. "From the perspective of consumer protection, we will review whether the matters related to hedging foreign exchange risks for overseas investments are being fully explained by financial firms," Lee Chan-jin, the governor of the Financial Supervisory Service, told a press conference. Sign up here. Lee was speaking on an earlier government announcement that authorities would conduct inspections on protection measures for retail investors, adding that they do not plan to regulate overseas stock investments. The won has weakened more than 4% against the dollar so far this quarter, which the country's central bank last week attributed to increasing overseas investments by residents and sales of domestic stocks by foreigners. There is no sign of risks for financial firms in terms of foreign exchange exposure, Lee said. "On the contrary, some insurance firms are making profit," he said. Regarding ongoing investigations into private equity firm MBK Partners over its sale of troubled supermarket chain Homeplus and media reports of potential heavy sanctions, Lee said a decision would be made this month. MBK, in response to a request for comment, said: "MBK Partners has been doing its best to protect investor interests, according to relevant laws and articles of association." It said it would give a full explanation in any future proceedings with the regulator. Lee also said authorities, who are also investigating local banks over their sales of equity-linked derivatives, would take into account their efforts to compensate investor losses. Recent data leaks at financial firms and other South Korean companies, including cryptocurrency exchange Upbit, Lotte Card and e-commerce retailer Coupang (CPNG.N) , opens new tab, raise the need for stronger regulations, Lee said, criticising companies for being negligent in their data security. https://www.reuters.com/sustainability/boards-policy-regulation/south-korea-market-watchdog-wary-fx-risks-retail-investors-2025-12-01/
