2025-06-29 09:02

LONDON, June 29 (Reuters) - Trade tensions and fractious geopolitics risk exposing deep fault lines in the global financial system, central bank umbrella body the Bank for International Settlements, said in its latest assessment of the state of the world economy. Outgoing head of the BIS, often dubbed the central bankers' central bank, Agustín Carstens, said the U.S.-driven trade war and other policy shifts were fraying the long-established economic order. Sign up here. He said the global economy was at a "pivotal moment", entering a "new era of heightened uncertainty and unpredictability", which was testing public trust in institutions, including central banks. The bank's report is published just over a week before U.S. President Donald Trump's trade tariff deadline of July 9 and comes after six months of intense geopolitical upheaval. When asked about Trump's criticisms of U.S. Federal Reserve Jerome Powell, which have included Trump labelling the Fed chair as "stupid", he was not overly critical. "It is to be expected at certain points in time that there will be friction," former Mexican central bank governor Carstens told reporters, referring to the relationship between governments and central banks. "It is almost by design". DOLLAR DROP The BIS' annual report, published on Sunday, is viewed as an important gauge of central bankers' thinking given the Switzerland-based forum's regular meetings of top policymakers. Rising protectionism and trade fragmentation were "particular concerning" as they were exacerbating the already decades-long decline in economic and productivity growth, Carstens said. There is also evidence that the world economy is becoming less resilient to shocks, with population ageing, climate change, geopolitics and supply chain issues all contributing to a more volatile environment. The post-COVID spike in inflation seems to have had a lasting impact on the public's perception about price moves too, a study in the report showed. High and rising public debt levels are increasing the financial system’s vulnerability to interest rates and reducing governments' ability to spend their way out of crises. "This trend cannot continue," Carstens said referring to the rising debt levels and he said that higher military spending could push the debt up further. Hyun Song Shin, the BIS's main economic adviser, also flagged the sharp fall in the dollar. It is down 10% since the start of the year and on track to be its biggest H1 drop since the free-floating exchange rate era began in the early 1970s. He said there was no evidence that this was the start of a "great rotation" away from U.S. assets as some economists have suggested, but acknowledged that it was still too early to know given sovereign funds and central banks move slowly. Shorter-term analysis, though, showed "hedging" by non-U.S. investors holding Treasuries and other U.S. assets appears to have made an "important contribution" to the dollar's slide over the last few months. "We haven't seen anything (yet) that would give us any cause for alarm," Shin added. The BIS had already published one part of its report last week that gave a stark warning about the rapid rise of so-called stablecoins. In terms of the BIS' own finances, it said it made a net profit of 843.7 million IMF SDR ($1.2 billion), while its total comprehensive income reached a record high of SDR 3.4 billion ($5.3 billion) and currency deposits at the bank also reached a new high. "It is important that the BIS has the highest creditworthiness out there," Carstens said. https://www.reuters.com/world/europe/global-markets-bis-pix-2025-06-29/

2025-06-29 09:00

JAKARTA, June 29 (Reuters) - A lithium-ion battery plant by an Indonesian company and China's CATL is expected to be in operation by the end of 2026 with initial capacity of 6.9 gigawatt hours, an Indonesian official said on Sunday. The plant is expected to expand to produce electric vehicle batteries with storage capacity of up to 15 GWh, said energy ministry spokeswoman Dwi Anggia, adding the output will be sold to domestic and overseas markets. Sign up here. The venture by Indonesia Battery Corp and Chinese giant Contemporary Amperex Technology Co is part of a $6 billion power battery project signed in 2022 by Indonesian companies, including state-miner PT Aneka Tambang Tbk (ANTM.JK) , opens new tab, and a CATL consortium. The partnership spans nickel mining and processing, EV battery manufacturing and battery recycling. Indonesian Energy Minister Bahlil Lahadalia, speaking at the project's groundbreaking, said the plant might also produce a type of battery to store energy from solar panels. "With the battery for solar panels, the total production capacity of this plant could reach up to 40 GWh," he said, adding that discussion with the project owner was continuing. The battery plant will be built in West Java, while the remaining subprojects will be in eastern Indonesia's nickel-rich province of North Maluku. The government of Indonesia, home to the world's largest nickel reserves, has set an ambitious target of producing some 600,000 EVs by 2030. That would be around 13 times the number sold in Indonesia last year. https://www.reuters.com/world/china/indonesia-china-lithium-battery-plant-operational-by-end-2026-official-says-2025-06-29/

2025-06-29 08:55

CAIRO, June 29 (Reuters) - Egypt has begun shutting down some local wheat collection centres ahead of schedule, signalling that the harvest is nearing its end with purchases falling short of the government's target, according to a supply ministry document seen by Reuters. The shortfall comes as Egypt, often the world's largest wheat importer, seeks to secure affordable supplies for a vast subsidised bread programme that feeds nearly 70 million people, amid high inflation and ongoing economic strains. Sign up here. The government had aimed to procure between 4 and 5 million metric tons of wheat from a local harvest it estimated at around 10 million tons. The season, which started mid-April, officially runs through mid-August. However, as of Saturday, June 28, just over 3.9 million tons had been collected, according to a second, separate official document reviewed by Reuters. In recent days, the supply ministry has started gradually closing some collection points across the country, citing low volumes being delivered by farmers, according to the first document. Centres that remain open will also be closed if they don't receive wheat for 3-5 consecutive days, according to official documents, the document said. The Supply Ministry didn't immediately respond to a Reuters request for comment. Egypt typically supplements its domestic harvest with about 5 million tons of imports annually to support its strategic reserves and subsidised bread system. But import volumes in the first half of 2025 have also lagged behind those of the previous year, officials said last week. Egypt has strategic reserves of wheat and other commodities sufficient for more than six months, Prime Minister Mostafa Madbouly said earlier this month. https://www.reuters.com/world/africa/egypt-winds-down-wheat-collection-purchases-fall-short-target-documents-show-2025-06-29/

2025-06-29 07:44

Koo Yun-cheol named finance minister amid US tariff talks Koo emphasizes proactive response to economic challenges Trade envoy returns from first high-level talks in Washington since Lee took office SEOUL, June 29 (Reuters) - South Korea needs to take measures to support its economy in the short term as it continues tariff talks with the U.S., its likely new finance minister Koo Yun-cheol said on Sunday after being nominated for the role by President Lee Jae Myung. Koo, a former vice finance minister, still needs to go through parliament hearings before being confirmed as finance minister. Other ministerial appointments were also announced by the president's office on Sunday. Sign up here. "We need to take pre-emptive measures and prepare for situations such as the current tariff negotiations with the United States," Koo told a press conference. "Through this process, we plan to actively and proactively respond to the difficulties that the South Korean economy faces in the short term," he said. Trade envoy Yeo Han-koo returned home on Sunday after holding the first high-level tariff talks with his U.S. counterparts since President Lee took office on June 4. South Korea has sought exemptions from U.S. President Donald Trump's high tariffs on imports of automobiles and steel products, as well as a 25% "reciprocal" levy on the U.S. ally that is currently paused for negotiations. Yeo said his trip helped build mutual trust to expedite the negotiations and make friends in Washington. Asked if the July 8 deadline for negotiations over tariffs was still valid, Yeo said every possibility was left open. "In fact, the situation in the United States is very fluid. So, for now, I can say that all possibilities are open," he told reporters. The U.S. has demanded that South Korea improve non-tariff barriers particularly in the agricultural and digital services sectors, according to South Korean officials. MINISTERIAL APPOINTMENTS New finance minister Koo is widely known as a policy expert, having served in different positions across government and has authored books on South Korea's innovation and growth, most recently on artificial intelligence, Lee's chief of staff, Kang Hoon-sik, told a briefing. Among other ministerial positions, Kim Jung-kwan, president of power plant builder Doosan Enerbility and a veteran bureaucrat in economics, energy and public policy, was nominated to be industry minister. Kim fits the role to realise President Lee's "energy mix philosophy", Kang said, referring to the new president's aim to balance nuclear power and renewable energy. The former head of South Korea's disease control agency, Jeong Eun-kyeong, was nominated for health minister. She was highly praised for her response to the COVID-19 pandemic, becoming one of Time Magazine's 100 most influential people of 2020. Cabinet nominations in South Korea must be vetted by hearings in parliament. But presidents may appoint their nominees without parliament's approval, and Lee's Democratic Party has a majority in parliament. https://www.reuters.com/en/south-koreas-lee-nominates-new-finance-industry-ministers-2025-06-29/

2025-06-29 02:25

CHARLOTTE, North Carolina, June 28 (Reuters) - Chelsea coach Enzo Maresca lashed out after a two-hour weather delay disrupted his team's last-16 Club World Cup victory over Benfica on Saturday, suggesting the United States was not a suitable country for the competition - a year before it is due to host the men's World Cup. Chelsea beat Benfica 4-1 in extra-time to qualify for the quarter-finals after a game that ended four hours and 39 minutes after kicking off, following a two-hour interruption due to a storm warning. Sign up here. It was the sixth time that a game was stopped at the 32-club tournament because of the risk of lightning. "For me personally, it's not football," Maresca told a press conference. "I think it's a joke. It's not football. "I can understand that for security reasons, you have to suspend the game. But if you suspend seven or eight games, that means that probably this is not the right place to do this competition. "It's a fantastic competition. It's the Club World Cup, all the best clubs are here," he added. "But six, seven games suspended? It's not normal. In a World Cup how many have they suspended? Probably zero. In a European (championship), how many games? Zero. There is some problem." FIFA, which organised the tournament, was not immediately available for comment. Chelsea were 1-0 up when the players were asked to leave the pitch and play only resumed almost two hours later. "The game was very good for 85 minutes, then we stopped for two hours, and when we started it was a completely different game. It's not the same game because you break the tempo," Maresca said. https://www.reuters.com/sports/soccer/chelsea-boss-lashes-out-club-world-cup-organisers-after-yet-another-weather-2025-06-29/

2025-06-29 00:07

June 28 (Reuters) - Tropical Depression Two in Mexico's Bay of Campeche is expected to strengthen into a tropical storm before making landfall along Mexico's Gulf coast on Sunday night, the U.S. National Hurricane Center (NHC) said. "On the following track the depression is expected to make landfall along the Mexico coast on Sunday night and move further inland on Monday," the NHC said in its Saturday evening advisory. Sign up here. The depression, located about 100 miles (160 km) northeast of Veracruz, was moving northwest across the Bay of Campeche and a tropical storm warning was in effect for the Gulf coast of Mexico from Boca de Catan southward to Tecolutla. The storm is expected to produce 3-6 inches (76.2-152.4 mm), with maximum totals of 10 inches (254 mm) possible across the states of Veracruz, San Luis Potosi and Tamaulipas, the NHC said. "This rainfall may produce isolated flash and urban flooding," the advisory added. https://www.reuters.com/business/environment/nhc-issues-tropical-storm-warning-issued-mexicos-gulf-coast-2025-06-29/