2025-04-10 10:06
SYDNEY, April 10 (Reuters) - Australia's top central banker said on Thursday that it was still too early to decide on the path for interest rates, adding it needed to be patient as it assesses the economic impact of U.S. trade policies that have upended financial markets. In a speech in Melbourne, Reserve Bank of Australia (RBA)Governor Michele Bullock warned of a period of market and economic volatility ahead but said Australia's financial system was well placed to absorb shocks from abroad. Sign up here. U.S. President Donald Trump enacted a baseline 10% tariff on all imports on Saturday, but held off on his plans to slap much higher levies on its major trading partners after a massive meltdown in stocks and bonds. Trump, however, ramped up his trade war against China, Australia's biggest trading partner. Beijing has struck back against Washington on every tariff measure and is now subject to a whopping 125% levy. "It will take some time to see how all of this plays out and the added unpredictability means we need to be patient as we work through how all of this could affect demand and supply globally," said Bullock. Bullock added that she was not seeing the same degree of market impact as previous events like in 2008. The RBA held interest rates steady at 4.1% last week. It is still waiting for more data to be sure inflation is moving sustainably back to its 2-3% target band, wary that a strong labour market could stoke price pressures. Swaps imply a quarter-point rate cut from the RBA has been fully priced in for May, with some risk for a large 50-basis-point move. Markets expect a total easing of 115 basis points for all of this year. "We are mindful of not adding to the uncertainty, and to that end, it’s too early for us to determine what the path will be for interest rates," Bullock said. "There are a lot of moving parts," she added. "Our focus remains on our dual mandate for price stability and full employment." https://www.reuters.com/world/asia-pacific/australia-central-bank-says-too-early-decide-rate-path-amid-tariff-uncertainty-2025-04-10/
2025-04-10 08:46
India-U.S. aim to conclude first part of trade deal this year India will increase scrutiny on low-cost imports, official says India trade minister says China's trade practices unfair NEW DELHI, April 10 (Reuters) - India wants to move quickly on a trade deal with the United States, a government official said on Thursday, after President Donald Trump's decision to pause reciprocal tariffs on dozens of countries, while hiking levies on China. India and the United States agreed in February to work on the first phase of a trade deal to be concluded late this year, with a view to reaching two-way trade worth $500 billion by 2030. Sign up here. "India is one of the first nations to start talks over a deal with the United States and to have jointly agreed to a deadline to conclude it," said the official, who spoke on condition of anonymity because of the sensitivity of the issue. India's trade ministry, which is leading the talks with the United States, did not immediately respond to an e-mail seeking comment. The Indian trade minister said at an event in New Delhi earlier this week that manufacturers in India and the U.S. have suffered from China's unfair trade practices over the years. India will raise scrutiny on imports to spot any potential dumping of goods, including from China, the official said On Wednesday, Trump temporarily lowered duties on trading partners including India, just 24 hours after imposing tariffs that unleashed the most intense market volatility since the early days of the COVID-19 pandemic. Shifting the focus back to a bilateral trade war with China, Trump said he would raise to 125% the tariff on imports from China. The U.S. reciprocal tariff on India stands at 10%. The decision to halt further tariffs is especially a relief for Indian shrimp exporters, the official said, citing an industry that faced a tariff disadvantage compared to competitors like Ecuador. Nearly $14 billion worth of electronics products and over $9 billion worth of gems and jewellery were also among the sectors impacted by the U.S. tariffs. Ajay Sahai, director general at the Federation of India Export Organisations, representing more than 37,000 exporters, said the 90-day pause gives Indian negotiators time to work on concluding a bilateral trade deal with the United States. "The U.S. appears determined to hit China hard, and if it wants to ensure a non-disruptive supply of goods to its consumers while keeping inflation in check, India remains one of the most reliable suppliers," Sahai said. https://www.reuters.com/world/india-eyes-quick-trade-deal-with-us-amid-tariff-pause-official-says-2025-04-10/
2025-04-10 08:36
BRUSSELS, April 10 (Reuters) - U.S President Donald Trump's dramatic decision to pause hefty tariffs on dozens of countries was an important step towards stabilising the global economy, European Commission President Ursula von der Leyen said on Thursday. Von der Leyen, who heads the EU's executive arm, said the bloc remained committed to constructive negotiations with the United States, with the goal of achieving "frictionless and mutually beneficial trade." Sign up here. "Clear, predictable conditions are essential for trade and supply chains to function," she said in a statement on X. Tariffs were taxes that only hurt businesses and consumers, she said, adding: "That’s why I’ve consistently advocated for a zero-for-zero tariff agreement between the European Union and the United States." Trump last week had announced a broad 20% tariff on U.S. imports from the EU as part of his global "reciprocal" tariffs levied on nations across the globe. In a stunning reversal, Trump said on Wednesday he would temporarily lower the duties he had just imposed on dozens of countries while further ramping up pressure on China, sending global stocks rocketing higher. Trump's announcement did not appear to affect duties recently imposed on autos, steel and aluminum that are already in place. The EU will launch its first countermeasures against the new levies on steel and aluminium next week. Von der Leyen did not mention those countermeasures in her statement. "At the same time, Europe continues to focus on diversifying its trade partnerships, engaging with countries that account for 87% of global trade and share our commitment to a free and open exchange of goods, services, and ideas," she said. She also said that the Europe was stepping up work to lift barriers in its single market. "This crisis has made one thing clear: in times of uncertainty, the single market is our anchor of stability and resilience," she said. https://www.reuters.com/world/eus-von-der-leyen-welcomes-trumps-announcement-pause-reciprocal-tariffs-2025-04-10/
2025-04-10 07:56
April 10 (Reuters) - Swiss chocolate maker Barry Callebaut (BARN.S) , opens new tab lowered its annual sales volume guidance on Thursday due to what it called "unprecedented volatility" in cocoa bean prices, sending its shares falling almost 20%, on track for their biggest one-day drop ever. The world's largest chocolatier, which supplies key food producers such as KitKat maker Nestle (NESN.S) , opens new tab, forecast a mid-single-digit percentage decrease in its cocoa sales volume for the financial year ending on August 31. Sign up here. It had previously said it expected the sales volume to fall by a low single-digit percentage amid the exceptionally high prices of the raw material. "The short term pain from the unprecedented cocoa price spike and volatility is worse than we anticipated for the company," Kepler Cheuvreux's analyst Jon Cox told Reuters. But declining cocoa prices should lead to an improvement in chocolate demand and ease pressure on Barry Callebaut's balance sheet and financials, Cox added. Cocoa futures trade in London at around 6,096 pounds ($7,839.5) per metric ton , down from a yearly high of 9,290 pounds in January, as climate change and years of insufficient planning have brewed up the perfect storm for farmers in Western Africa which accounts for roughly 70% of global cocoa supplies. Barry Callebaut, whose ingredients are used in one out of four chocolate and cocoa products consumed worldwide, posted a volume decline of 4.7% to 1.08 million tons in the first six months of the year, slightly below the 1.11 million tons expected by analysts in a company-provided consensus. It reiterated that it expects a double-digit percentage rise in recurring core earnings (EBIT) in constant currency this year. In the first half, the figure fell 2.9% to 329.6 million Swiss francs ($386.0 million). However, the "disruptive environment" will cause a 12-month delay for the company's "BC Next Level , opens new tab" savings to be reflected in the earnings, it said, while confirming it still aimed to save 250 million francs annually under the transformation plan. ($1 = 0.7776 pounds) ($1 = 0.8539 Swiss francs) https://www.reuters.com/business/retail-consumer/high-cocoa-prices-bite-into-barry-callebauts-volume-outlook-shares-slump-2025-04-10/
2025-04-10 07:53
Taiwan economy minister eyes more LNG imports from US Taiwan foreign minister wants 'coalition' with US on trade Taiwan stocks rebound after three days of precipitous falls Taiwan central bank warns stock market uncertainty not lifted TAIPEI, April 10 (Reuters) - Taiwan state-backed bodies could over the next decade buy an extra $200 billion from the United States and bump up the percentage of LNG it gets from the county by one-third to help narrow the trade deficit, the economy minister said on Thursday. Taiwan President Lai Ching-te on Sunday pledged to seek a zero tariff regime with the United States and buy more from and invest more in the country, and said that Taipei would not retaliate in response to U.S. tariffs - now put on pause by President Donald Trump. Sign up here. Taiwan had been due to be hit with a 32% tariff, sending its stock market plummeting, though the key semiconductor industry was excluded. Taking lawmakers' questions in parliament about the government's response to the tariffs, Economy Minister Kuo Jyh-huei said the plan being discussed was some $200 billion in purchases over the coming decade by the government and state-run companies. That does not include purchases by private companies, he added. Asked about raising the proportion of Taiwan's imports of liquefied natural gas (LNG) from the United States from 10% to 30% of the total, Kuo said that was the "direction" being eyed. Most of Taiwan's LNG now comes from Australia and Qatar. Speaking to reporters at parliament, Taiwan Foreign Minister Lin Chia-lung said there was now breathing room to have more detailed and in-depth talks with the United States. "We hope to take advantage of the huge U.S. market, their excellent technology capital and talent, to form a Taiwan-U.S. coalition, a joint fleet approach," he added. The United States has received Taiwan's trade proposals "and has also responded", Lin said, without giving details. In a statement after a weekly cabinet meeting, Taiwan Premier Cho Jung-tai said the government would seize the opportunity to have "direct and effective" talks with the United States. On Thursday, Taiwan's benchmark stock index (.TWII) , opens new tab followed global markets higher in response to the tariff reprieve, rising 9.3%, a record gain, having plummeted the previous three trading sessions. Taipei-listed shares in TSMC (2330.TW) , opens new tab, the world's largest contract chipmaker, as well as those for iPhone maker Foxconn (2317.TW) , opens new tab, rebounded close to 10%. Both are major suppliers to U.S. companies, including Apple (AAPL.O) , opens new tab and Nvidia (NVDA.O) , opens new tab. However, speaking at a separate parliamentary committee session, Taiwan central bank governor Yang Chin-long said there remained much uncertainty for markets and the world economy about Trump's tariffs. But Taiwan continues to hold more than 80% of its foreign exchange reserves in U.S. Treasury bonds, he added. "At present more than 80% is ideal, and we will assess whether to increase it," Yang said. https://www.reuters.com/world/asia-pacific/taiwan-says-trump-tariff-pause-gives-breathing-room-more-detailed-talks-2025-04-10/
2025-04-10 07:12
JOHANNESBURG, April 10 (Reuters) - South Africa's rand firmed in early trade on Thursday, recouping some of its recent loss as investors took a breather after U.S. President Donald Trump announced an immediate 90-day tariff pause for many countries. At 0631 GMT, the rand traded at 19.25 against the U.S. dollar , about 0.4% stronger than its previous close. Sign up here. The local currency hit a record low of 19.9325 on Wednesday, the day Trump's country-specific import tariffs kicked in. Trump said he would temporarily lower tariffs imposed on dozens of countries including South Africa but kept a 10% blanket duty on almost all U.S. imports. In addition to Trump's tariffs, local politics have also weighed on the risk-sensitive rand, after a contentious budget vote last week threatened the future of the ruling coalition. The second-biggest party in the coalition, the pro-business Democratic Alliance, voted against key legislation in the budget and challenged the budget process in court. South Africa-focused investors on Thursday will look out for February domestic manufacturing (ZAMAN=ECI) , opens new tab data due at 1100 GMT for clues on the health of the economy. Benchmark 2030 government bonds were stronger in early deals, with the yield down 15.5 basis points at 9.15%. https://www.reuters.com/markets/currencies/south-african-rand-regains-some-ground-after-us-pauses-tariffs-2025-04-10/
