2025-03-20 10:04

SNB rate cut follows decision by Fed to leave rates on hold Swiss key rate now just above zero Swiss central bank sees low inflationary pressures Uncertainty over impact of Trump trade policies persists ZURICH, March 20 (Reuters) - The Swiss National Bank cut its main interest rate to just above zero on Thursday, saying inflationary pressures were well contained despite increased uncertainty over the global impact of U.S. President Donald Trump's trade policies. The SNB reduced its key rate by a quarter point to 0.25%, its fifth successive cut since it started lowering borrowing costs in March 2024, matching economists' forecasts, with several now expecting rates to stay on hold for the time being. Sign up here. The Swiss franc weakened slightly against both the euro and the dollar after the decision. The franc was last flat at 0.95705 against the euro , having traded around 0.9537 earlier, and at 0.8803 to the dollar , which was up 0.4% on the day. "The SNB was not only the first big central bank to have started cutting rates in this cycle, with this step today, it likely is also the first one to have finished cutting rates," said Karsten Junius, chief economist at Bank J Safra Sarasin. "The upward revisions of inflation profile indicate that no further rate cut is needed." The decision comes on a busy day for central banks, with the Bank of England and Sweden's central bank also due to announce their policy decisions on Thursday. The U.S. Federal Reserve on Wednesday held interest rates steady, citing a period of "unusually elevated" uncertainty linked to Trump's initial policies, including tariffs, which it said could both dampen growth and lead to higher inflation. Swiss National Bank Chairman Martin Schlegel said uncertainty about the prospects for the global economy and inflation had increased significantly. "As a result, the outlook for inflation in Switzerland too is currently very uncertain. At present, the risks are predominantly to downside," he said after the rate decision. The new 0.25% rate is the SNB's lowest since September 2022, and brings it close to sub-zero interest rates again, a move it has previously not ruled out. In its statement, the central bank said the decision meant monetary conditions remain appropriate "given the low inflationary pressure and the heightened downside risks to inflation." GROWTH UNCERTAINTY The cut aims at preventing a further decline in Swiss inflation, which eased to 0.3% in February, its lowest level in nearly four years, and keeping it within the 0-2% target range which the central bank defines as price stability. The SNB said that its baseline scenario anticipated moderate global growth over the coming quarters and gradually easing underlying inflationary pressure, particularly in Europe. It warned, however, that this scenario for the global economy is currently subject to high uncertainty. "The situation could change rapidly and markedly, particularly from a trade and geopolitical perspective. For example, increasing trade barriers could lead to weaker global economic development," it said. "At the same time, a more expansionary fiscal policy in Europe could provide stimulus to the economy in the medium term." The SNB kept its expectations for Swiss economic growth at 1-1.5% for 2025. For 2026, it sees growth of about 1.5%. Still, SNB governing board member Petra Tschudin said after the rate decision that the economic outlook for Switzerland was now "considerably more uncertain." On inflation, the SNB now expects prices to rise by 0.4% this year, 0.8% in 2026 and 0.8% in 2027. It had previously forecast average inflation of 0.3% in 2025 and 0.8% next year. https://www.reuters.com/markets/rates-bonds/swiss-national-bank-cuts-rates-2025-03-20/

2025-03-20 09:50

ZURICH, March 20 (Reuters) - The Swiss National Bank will continue to use foreign currency market interventions if necessary, Chairman Martin Schlegel said on Thursday, adding the central bank was not a currency manipulator. The SNB had not used currency interventions to gain a competitive advantage for the Swiss economy in the past and would use the tool again if needed to steer monetary policy, Schlegel told a press conference after the SNB's latest interest rates decision. Sign up here. "Switzerland is not a currency manipulator," Schlegel told reporters. "We will use all our tools that we have at hand." https://www.reuters.com/markets/currencies/swiss-national-bank-still-ready-intervene-forex-market-says-its-no-currency-2025-03-20/

2025-03-20 09:43

MOSCOW, March 20 (Reuters) - The Russian rouble weakened further on Thursday, adjusting after a significant rally since the start of the year that has been fuelled by hopes of an easing in geopolitical tensions amid talks between Russia and the United States. By 0920 GMT, the rouble was down 0.4% at 84.30 against the dollar in the over-the-counter market, extending its losses from the previous session when it fell 2.8%, its biggest daily drop since the beginning of the year. Sign up here. Against the Chinese yuan, the most traded foreign currency in Russia, the rouble was down 1.1% at 11.62 on the Moscow Stock Exchange. Despite these losses, the rouble is still up by 26% against the dollar this year. "What we are observing now is a natural rebound after a series of margin calls for early players against the rouble and buyers of currency futures; they simply had to sell urgently," BCS analysts said in a note. https://www.reuters.com/markets/currencies/russian-rouble-corrects-after-rally-fuelled-by-us-russia-talks-2025-03-20/

2025-03-20 07:55

Canada condemns China's execution of four Canadians on drug charges Ottawa seeks leniency for other Canadians facing execution China imposes severe penalties on drug-related crimes, embassy states OTTAWA, March 19 (Reuters) - Canada said on Wednesday that China had executed four Canadian citizens on drugs smuggling charges earlier this year, and strongly condemned Beijing's use of the death penalty. Foreign Minister Melanie Joly told reporters that all four had been dual citizens and said Ottawa would ask for leniency for other Canadians facing the same fate. Sign up here. "There are four Canadians that have been executed and therefore we are strongly condemning what happened," she said, adding that all four had been convicted on drugs charges. Separately, the Canadian Foreign Ministry said that Robert Schellenberg, a Canadian man sentenced to death in 2019 for drug smuggling, had not been executed. Canada-China ties have been icy since 2018 when Meng Wanzhou, Chief Financial Officer of Chinese telecoms firm Huawei, was detained in Vancouver at Washington's request. China arrested two Canadians shortly afterwards. Meng and the Canadian duo were released in 2021. Earlier this month Beijing announced tariffs on more than $2.6 billion worth of Canadian agricultural and food products, retaliating against levies Ottawa slapped on Chinese electric vehicles and steel and aluminum products last year. Combating drug-related offences is a shared responsibility of all countries, Chinese Foreign Ministry spokesperson Mao Ning said on Thursday, urging Canada to "respect the spirit of the rule of law and stop interfering in China's judicial sovereignty". Mao added that China treats those accused equally regardless of nationalities, handles their cases fairly and strictly, while safeguarding their rights. In a statement, the Chinese embassy in Ottawa said Canada was making irresponsible remarks. "China always imposed severe penalties on drug-related crimes and maintains a 'zero tolerance' attitude towards the drug problem," it said, without confirming that any executions had taken place. https://www.reuters.com/world/ottawa-condemns-recent-chinese-executions-canadian-citizens-2025-03-19/

2025-03-20 07:48

Cuts investment programme to 35 billion euros by 2030 Cites lower returns, regulatory returns Core profit could fall by up to a fifth in 2025 Frankfurt-listed shares down 3.4% ESSEN, Germany, March 20 (Reuters) - RWE, Germany's largest utility, on Thursday said it would cut investments by more than a fifth until the end of the decade, citing global uncertainty around renewable energy returns that has forced major sector players to pare back spending plans. Citing geopolitical risks as well as supply chain constraints, RWE said it was currently "impossible to predict" what the change in U.S. energy policy would mean for the expansion of renewables in the country. Sign up here. About half of RWE's installed renewable capacity is based in the United States, where President Donald Trump has taken aim at offshore wind technology, an area where the German group is exposed through early-stage projects. "As a result of stricter risk management and higher return expectations, we will invest less than previously planned through to 2030," CEO Markus Krebber said. Frankfurt-listed shares in the company were 3.4% lower. RWE, the world's second-largest developer of offshore wind farms, said it would pare back investments by 10 billion euros ($10.9 billion) to around 35 billion euros by 2030. The company said it was also raising the return requirements for new investments to more than 8.5% from 8% previously. Along with peers, RWE has faced a more challenging global investment environment for renewable energy projects, while investors have for some time criticised the company's capital allocation as a result. RWE's decision to rein in spending follows similar moves by rivals Orsted (ORSTED.CO) , opens new tab and BP , opens new tab(BP.L) , opens new tab. RWE said it expected adjusted core profit (EBITDA) of 4.55 billion euros to 5.15 billion euros in 2025, down from 5.68 billion in 2024. Adjusted net income is forecast to be between 1.3 billion euros and 1.8 billion euros, down from 2.32 billion. ($1 = 0.9180 euros) https://www.reuters.com/business/energy/rwe-cuts-investment-programme-by-109-bln-uncertainty-rises-2025-03-20/

2025-03-20 07:34

Red Sea, U.S. tariffs decisive for 2025 performance Net profit fell by nearly a fifth in 2024, dividend to be cut Looks to fleet investments, Gemini cooperation with Maersk FRANKFURT, March 20 (Reuters) - Container shipping firm Hapag-Lloyd (HLAG.DE) , opens new tab said on Thursday net profit fell nearly 19% in 2024 and is expected to decline further this year, with U.S. tariffs and Houthi militant attacks on shipping in the Red Sea clouding the outlook. The world's fifth biggest container liner said President Donald Trump's tariff policies were weighing on demand, while the timing of operators' return to the Red Sea would be decisive for operational performance in 2025. Sign up here. "The economic and geopolitical environment remains fragile. In this context, we anticipate earnings in 2025 to be lower than in 2024," he said. In a call with reporters, he said later that he expected the U.S. economic growth outlook to be reduced. The company also proposed an 11.4% year-on-year cut in its dividend for last year to 8.20 euros per share. Shares in the group were down 8% at 1200 GMT. Habben Jansen said there would not be a quick resolution of the Suez Canal crisis, with vessel owners forced to sail a costly alternative route around Africa to avoid attacks by Houthi militants in the Red Sea. The company, which started the Gemini cooperation with rival Maersk in February, said it would keep a close eye on unit costs and develop its terminal business and onshore businesses in the current year. It has ordered and arranged financing for 24 new ships from China. Net profit at the group fell to 2.4 billion euros ($2.61 billion) in 2024 from 2.9 billion. Earnings before interest and taxes for 2025 were forecast at between zero and 1.5 billion euros, against 2.6 billion posted in 2024. ($1 = 0.9180 euros) https://www.reuters.com/markets/europe/hapag-lloyd-posts-19-lower-net-profit-2024-cut-dividend-2025-03-20/