2025-11-19 11:28
BERLIN, Nov 19 (Reuters) - Airbus chairman Rene Obermann has called on European countries to acquire tactical nuclear weapons in response to the threat posed by Russian Iskander missiles deployed at Kaliningrad that can carry nuclear warheads. "Our Achilles heel seems to be what Russia threatens us with fairly publicly: That's 500 plus tactical nuclear warheads on Iskander 26 missiles stationed right in front of our door in Kaliningrad, in addition to the newly stationed ones in Belarus," Obermann said at the Berlin Security Conference on Wednesday. Sign up here. "Germany, France, Britain and other willing European member states should agree on a common and staged nuclear deterrence program, including very much so the tactical level. I think that would be a massive sign of deterrence." https://www.reuters.com/business/aerospace-defense/airbus-chair-calls-europe-acquire-tactical-nuclear-weapons-2025-11-19/
2025-11-19 11:20
LONDON, Nov 19 (Reuters) - North Sea oil and gas producer Ithaca Energy (ITH.L) , opens new tab said on Wednesday it has agreed to buy a 50% stake in the Tobermory gas discovery from Shell UK (SHEL.L) , opens new tab, located in the West of Shetland basin off Scotland. Shell's interest in Tobermory will form part of Adura, a joint venture with Equinor (EQNR.OL) , opens new tab expected to be launched later this year. That partnership, announced in December 2024, will combine Shell and Equinor's UK offshore oil and gas assets. Sign up here. Wednesday's announcement with Ithaca supports Shell's West of Shetland gas growth strategy, a Shell spokesperson said. Shell and Ithaca already are 50/50 partners in the Tornado discovery. In a sign of Shell's broader shift back to oil and gas production and away from renewables, Shell recently exited the MarramWind and CampionWind projects off the coast of Scotland. Ithaca is one of the largest independent oil and gas companies in the UK Continental Shelf. The company said on Wednesday it was progressing toward a final investment decision in the Cambo and Tornado discoveries. In October 2024, Ithaca announced it had completed a 754 million pound ($993 million) deal to buy nearly all of Eni's (ENI.MI) , opens new tab UK oil and gas producing assets. https://www.reuters.com/business/energy/uks-ithaca-energy-buys-50-stake-tobermory-gas-shell-uk-2025-11-19/
2025-11-19 10:38
Fed independence still a risk - Amundi CIO Mortier Firm is underweight megacap stocks Expects the ECB will cut rates more than markets expect LONDON, Nov 19 (Reuters) - Damage to the independence of the U.S. Federal Reserve remains a risk going into 2026, the chief investment officer of Europe's largest asset manager said on Wednesday. Amundi, which manages 2.3 trillion euros ($2.67 trillion), favours European and emerging market bonds and is underweight megacap stocks, according to Vincent Mortier. Sign up here. "One of the big tail risks you have for next year is a big pressure put on the Fed," Mortier told reporters. "Any changes in Fed governance or Fed independence could be a massive unexpected thing," he said, adding he would not be surprised to see a "much lower" Fed policy rate in 2026. U.S. President Donald Trump has repeatedly attacked Fed Chair Jerome Powell for being too slow to lower rates, despite persistent inflation and steady economic growth. Powell's term ends in May next year and is expected to be replaced by a candidate whose views align more closely with those of the president. Mortier said the firm was underweight so-called megacap equities, but it had not sold down the stocks in most portfolios, hedging them with derivatives that give it the option to sell them instead. Global stocks have come under pressure in recent weeks as concerns mount about AI-related valuations, especially megacaps, a group including the "Magnificent Seven" technology firms. "To be underweight all these megacap names is very painful this year. We cannot be out of this market, but we are happy to spend some performance of some of the assets to buy insurance," he said. The firm expects the U.S. dollar, which has lost over 8% this year against a basket of currencies , to weaken further. Mortier said the benchmark 10-year U.S. Treasury yield would stay anchored around 4%, and expects policymakers to intervene if yields drifted much above here given debt sustainability concerns. Asked how they might do so, Mortier said the U.S. Treasury could favour issuing shorter-dated debt, rather than longer maturities, and the Fed could resume bond-buying if needed. Dollar-pegged stablecoins and plans to ease bank capital requirements are also clear strategies to boost demand for Treasuries, he added. Mortier said he favours positions taking interest rate risk in European bonds, betting the European Central Bank will be "much more dovish" than market expectations that it will keep interest rates on hold next year. ($1 = 0.8630 euros) https://www.reuters.com/business/amundis-mortier-sees-more-dovish-ecb-than-markets-expect-2025-11-19/
2025-11-19 09:46
LONDON, Nov 19 (Reuters) - British house prices in September were 2.6% higher than a year earlier, the smallest annual rise since May and down from an upwardly revised increase of 3.1% in August, figures from the Office for National Statistics showed on Wednesday. Private-sector rents for homes in October were 5.0% higher than a year earlier, down from a 5.5% annual increase in September and the smallest such rise since August 2022. Sign up here. https://www.reuters.com/world/uk/uk-house-price-rises-slow-year-september-2025-11-19/
2025-11-19 08:40
MUMBAI, Nov 19 (Reuters) - Offshore investors are using options to position for a potential rally in the Indian rupee, encouraged by Wall Street banks promoting strategies built on the prospect of a trade deal between the United States and India. Over the past two weeks, several banks have floated trades linked to a stronger rupee, with Citi and Goldman Sachs among those recommending such wagers. Sign up here. Citi, in a note last week, suggested a three-month options trade that bets the rupee could rise to at least 87 per U.S. dollar, with a potential upside towards 86.5. "An actual culmination" of a U.S.-India trade deal could inject positivity, while the rupee's relative valuation has turned supportive, Citi said. Goldman Sachs has proposed a longer-term bet that stands to benefit from a rupee rally while expecting the currency's rise will be limited to 85.50. The bullish recommendations come even as the rupee has spent the last two months languishing near its all-time low of 88.80 and avoided steeper losses largely due to frequent central bank interventions. It was last at 88.45 at 1 p.m. IST on Wednesday, up 0.2% for the day. Societe Generale also reinforced the optimism, saying in a November 6 note that the tide was turning for the currency. Offshore investors have responded by piling into trades favouring a rupee recovery. "These trades have been coming through consistently over the last fortnight," said a portfolio manager at a Singapore-based hedge fund. "Offshore flows are definitely skewed towards upside structures (on the rupee)." A Mumbai-based currency derivatives trader confirmed a pickup in options activity from two U.S.-based and one UK-based lender, which he attributed to offshore investors betting on a stronger rupee. Options market data reflects the optimism, as bets on a rising rupee are currently more expensive than those that wager on its fall. The one-month dollar/rupee risk reversal stands at -0.7 and the three-month at -0.4, indicating traders see better odds of the rupee climbing. Signs of a potential trade deal from U.S. and Indian officials have further buoyed sentiment. U.S. President Donald Trump said last week that an agreement is "coming soon" and that tariffs on Indian goods would be cut "at some point." https://www.reuters.com/business/finance/wall-street-banks-ignite-rush-indian-rupee-rally-wagers-tied-trade-deal-optimism-2025-11-19/
2025-11-19 07:47
LONDON, Nov 19 (Reuters) - Sterling edged lower after data on Wednesday showed British consumer price inflation fell to 3.6% in October, the first drop since May, with traders increasing bets the Bank of England will cut interest rates in December. Consumer price inflation fell to 3.6% in October from September's joint 18-month high of 3.8%, as expected by the BoE and economists polled by Reuters. Sign up here. The data cemented expectations that the BoE could cut interest rates in December, while elsewhere investors struggled for direction and U.S. agencies cleared a backlog of data after a prolonged government shutdown. "Today's report could give the BoE more ammunition to cut interest rates next month, although we still think that the decision will be on a knife edge, and we do not expect interest rate future prices to change too dramatically on the back of this report," Kathleen Brooks, research director at XTB, said. Markets now see an 86% chance of a 25-basis point BoE rate cut in December, up from an 80% chance priced on Tuesday, according to LSEG data. Brooks said that there was another labour market report and inflation print due before the December BoE meeting, which may shift the dial for rates and could limit the immediate downside for gilts and for the pound. The BoE paused its quarterly pace of rate cuts earlier this month and finance minister Rachel Reeves has said she would seek to avoid tax and spending measures that might add to inflation in her annual budget on November 26. "The budget is the next main driver for the pound. If Rachel Reeves' fiscal plans do not convince the market that she has a credible plan for fiscal consolidation over the rest of this parliament, then we could see bond yields spike again and this could weigh heavily on the pound," Brooks added. Sterling was down 0.17% against the dollar at 1.3133, its lowest since Friday, when British markets were whipped around as speculation swirled around the highly-anticipated budget. The euro was up 0.07% against sterling at 88.14 pence, having traded as high as 88.64 pence on Friday, its highest since April 2023. https://www.reuters.com/world/uk/sterling-steadies-after-uk-inflation-eases-expected-2025-11-19/
