2025-03-11 10:30
March 11 (Reuters) - U.S. government decisions are hurting the North American market disproportionately, consumer goods and adhesive maker Henkel (HNKG.DE) , opens new tab said on Tuesday, the latest company to warn about uncertainty caused by President Donald Trump's trade policies. "For sure what is happening in the U.S. in terms of decisions, that's impacting especially the North American market overproportionally and is also impacting us," Carsten Knobel, chief executive of the Persil detergent and Loctite glue maker, said in a call with investors. Stocks slumped globally on Monday, while U.S. bond yields dropped as investor worries about the potential economic slowdown were exacerbated after Trump did not rule out a recession resulting from his tariffs. U.S. consumer and business confidence has weakened over tariffs imposed by Trump and threats of additional levies, and increasing concerns about higher prices. Henkel earlier on Tuesday gave a soft guidance for 2025 sales growth, projecting a slower start to the year due to a tough industrial environment and muted consumer sentiment especially in North America. Sign up here. https://www.reuters.com/business/retail-consumer/persil-owner-henkel-says-us-policies-are-hurting-north-american-market-2025-03-11/
2025-03-11 10:21
JAKARTA, March 11 (Reuters) - Indonesian Mining Association on Tuesday urged the government to reconsider a plan to hike royalty rates for mining products as miners are already struggling with rising operational costs and tight cash flow. Indonesia is considering raising royalties paid by mining companies from commodities like coal, nickel, copper, gold and tin, a proposal authorities said was intended to improve industry governance. "A royalty hike will increase the burden for the business community and it can affect production and investment plans," the group's Executive Director Hendra Sinadia said. "We request that the government reconsider the plan to increase the tariffs, especially given state revenues from the mining sector have exceeded targets in recent years," he said. Miners are already facing a host of policy changes impacting their finances, such as the removal of subsidies on biodiesel for industrial use and a 6.5% hike in regional minimum wages, and the mandatory use of a government-determined coal benchmark price for transactions, Hendra said. A recent policy mandating resource exporters to keep all proceeds onshore for a year would also tighten cash flow, Hendra said. Some miners would be further hit by Indonesia's adoption of the global minimum tax this year as they had previously been enjoying tax breaks on their smelter investment, he said. Nickel miners are dealing with declining prices, he said, adding that coal miners also complained of the government's price cap policy for domestic market, which has not been reviewed for several years. Miners face significant increases in royalty payments if the government goes ahead with the proposal, Maybank Securities Indonesia said in a note to clients, saying companies like Vale Indonesia (INCO.JK) , opens new tab, Bumi Resources Minerals , Aneka Tambang (ANTM.JK) , opens new tab and Merdeka Copper Gold (MDKA.JK) , opens new tab could see their earnings decline. However, some holders of a special coal mining permit such as Adaro Andalan Indonesia (AADI.JK) , opens new tab could benefit from the proposed revision due to an overall reduction in maximum rates charged. Other miners that could be affected by the proposal include Freeport-McMoran's (FCX.N) , opens new tab Indonesian unit, Amman Mineral Internasional (AMMN.JK) , opens new tab and tin miner Timah (TINS.JK) , opens new tab. Sign up here. https://www.reuters.com/markets/commodities/indonesian-miners-group-urges-government-reconsider-royalty-hike-plan-2025-03-11/
2025-03-11 10:11
MUMBAI, March 11 (Reuters) - The Indian rupee strengthened on Tuesday supported by likely intervention by the central bank and a rise in Asian currencies, as the dollar weakened to its lowest level since November against major peers. The rupee closed at 87.2125 against the U.S. dollar, up 0.1% on the day. The currency had declined to 87.3850 earlier in the session, as dollar bids spurred by the maturity of positions in the non-deliverable forwards (NDF) market exerted pressure. Likely intervention by the Reserve Bank of India though, helped limit its losses, traders said. Later in the session, the rupee benefited from weakness in the dollar. The dollar index was down 0.5% at 103.3 while Asian currencies rose, with the offshore Chinese yuan leading gains, up 0.4% on the day. "Heightened US policy uncertainty created by President Trump is raising doubts over the US dollar's safe haven role alongside the unwinding of popular US tech trades," MUFG Bank said in a note. Uncertainty about trade tariffs and their impact on the growth-inflation dynamic in the United States has sapped risk appetite from markets alongside a sharp selloff in U.S. equities. Worries about growth have also prompted traders to raise bets on rate cuts by the Federal Reserve this year. Traders are now pricing in 85 bps of easing from the Fed this year, compared to 75 bps on Monday, LSEG data showed. Meanwhile, dollar-rupee forward premiums gained, with the 1-year implied yield rising as much as 4 basis points to 2.20%, aided by a decline in U.S. bond yields. Investors now await the release of U.S. and India's consumer inflation data, due Wednesday. The data is expected to influence expectations of rate cuts by the countries' central banks. Sign up here. https://www.reuters.com/markets/currencies/rupee-gains-dollar-index-drops-four-month-low-2025-03-11/
2025-03-11 10:01
MUMBAI, March 11 (Reuters) - U.S.-headquartered cryptocurrency exchange Coinbase Global (COIN.O) , opens new tab has registered with India's Financial Intelligence Unit (FIU), allowing it to offer crypto trading services in the country, the company said on Tuesday. Coinbase said it plans to launch its initial retail services later this year and roll out additional investments and products thereafter, but did not disclose a specific timeline. Coinbase's entry into India comes at a time when interest in the asset class has soared in the country, with many young Indians dabbling in crypto and flocking to trading academies in the hopes of supplement their regular incomes. Other crypto exchanges that currently operate in India include CoinDCX, Binance and KuCoin. "India represents one of the most exciting market opportunities in the world today, and we're proud to deepen our investment here in full compliance with local regulations," said John O'Loghlen, Coinbase's regional managing director for Asia Pacific. India requires virtual digital asset service providers, such as crypto exchanges, to register with the FIU as a reporting entity and comply with obligations mandated under the country's anti-money laundering rules. While the country levies a 30% tax on crypto trading gains, among the highest globally, it is yet to outline regulations for the asset class, which has been in the spotlight since Donald Trump's victory in the U.S. Presidential election last year. India is reviewing its stance on cryptocurrencies due to global regulatory shifts, and influenced by recent U.S. policy changes, a senior official told Reuters last month. Sign up here. https://www.reuters.com/technology/coinbase-registers-with-indian-financial-watchdog-offer-crypto-trading-services-2025-03-11/
2025-03-11 07:44
Major lenders saw profitability strengthen due to rising rates Some face challenges estimating impact of rising rate in profits Some lenders lack sufficient framework to mitigate losses TOKYO, March 11 (Reuters) - The Bank of Japan said it will increase scrutiny into how lenders are estimating the impact of rising interest rates on their profits in next fiscal year's on-site inspections, as some were found not adequately grasping the risk of deposit outflows. After ending a decade-long, massive stimulus last year, the BOJ raised interest rates in January to 0.5%, their highest since the 2008 global financial crisis. Major financial institutions have seen their profitability strengthen due to the rising interest rates, the central bank said on Tuesday in a report on the findings of its on-site inspections for the current fiscal year ending in March. But some lenders faced challenges in estimating the impact of interest rate hikes on their profitability, and setting realistic projections on the extent to which they can raise loan and deposit rates, the BOJ said. Some financial institutions had problems with risk management or lacked adequate frameworks to mitigate losses, which led to them suffering an increase in valuation losses on their security holdings, the report said. The BOJ also warned that some smaller, regional lenders were not prepared enough to cope with the risk of an outflow of deposits, as bigger competitors or online banks seek to attract depositors with higher rates or more convenient services. "There were financial institutions that saw deposits decline as a trend or increase at a sluggish pace. Some failed to sufficiently analyse such developments in deposits," the report said. In its inspections for the year beginning in April, the BOJ will increase scrutiny on whether lenders have a sufficient grasp on how their deposits, loans and securities holdings will be affected by rising interest rates, the report said. "The BOJ will examine how financial institutions that are seeing deposits fall or rise at a slower pace analyse developments in deposits, and whether they are taking effective counter-measures," the report said. The BOJ will also scrutinise whether financial institutions have policies in place to deal with risks of an outflow of deposits including via the internet, it said. Such guidelines underscore the attention the BOJ is putting on various risks associated with its plan to continue raising interest rates to levels deemed neutral to the economy - seen by its staff as being anywhere from 1% to 2.5% on a nominal basis. Sign up here. https://www.reuters.com/business/finance/japan-lenders-have-seen-profitability-rise-due-higher-rates-boj-says-2025-03-11/
2025-03-11 07:31
MUMBAI, March 11 (Reuters) - The Indian rupee was little changed in early trading on Tuesday, wedged between weak appetite for risky assets and dollar sales by a large state-run bank that helped support the currency, while dollar-rupee forward premiums rose. The rupee was at 87.3050 against the U.S. dollar, nearly flat on the day. Asian currencies were mostly weaker as concerns about a potential tariff-driven U.S. recession hurt risk appetite, weighing on regional equity indexes as well. The benchmark Indian equity index, Nifty 50 (.NSEI) , opens new tab was down 0.2%. Dollar bids spurred by the maturity of positions in the non-deliverable forwards (NDF) market weighed on the local unit as well, traders said. The daily fix is quoting at 0.60/0.70 paisa premium but dollar sales from a large state-run bank seem to have blunted the upward bias for now, a trader at a mid-sized foreign bank said. The Reserve Bank of India's sell positions in NDFs are maturing and as they are not being rolled over, it pushes NDF points higher and "the pressure gets transmitted to onshore markets," FX advisory firm IFA Global said in a note. Meanwhile, dollar-rupee forward premiums rose, with the 1-year implied yield up 4 basis points at 2.20%, aided by a decline in U.S. bond yields as traders moved to price in about 85 bps of - or three or four - Federal Reserve rate cuts this year. The 1-year U.S. Treasury yield has declined 9 bps this week and was last quoted at 3.97%, its lowest level since October last year. Investors now await the release of U.S. and India's consumer inflation data on Wednesday. India's consumer inflation is expected to have eased to 3.98% and month-on-month U.S. core CPI likely dipped to 0.3% in February, per Reuters' polls. Sign up here. https://www.reuters.com/markets/currencies/rupee-nearly-flat-forward-premiums-rise-traders-raise-fed-cut-wagers-2025-03-11/
