2025-02-28 06:36

JAKARTA, Feb 28 (Reuters) - Indonesia's central bank conducted a "bold" intervention in the foreign exchange market on Friday, an official said, after the rupiah fell to its lowest level against the U.S. dollar since March 2020. Edi Susianto, Bank Indonesia's head of monetary management, told Reuters the rupiah depreciation was due to U.S President Donald Trump's trade policies. Sign up here. https://www.reuters.com/markets/currencies/bank-indonesia-intervenes-after-rupiah-falls-5-year-low-against-dollar-2025-02-28/

2025-02-28 06:26

Zelensky, Trump meeting turns into debacle U.S. inflation data as expected, consumer spending soft NEW YORK, Feb 28 (Reuters) - The euro dropped on Friday, after a meeting between Ukrainian President Volodymyr Zelenskiy and U.S. President Donald Trump went up in flames, dashing hopes any peace deal could be reached soon in the war with Russia. Trump and Zelenskiy traded verbal barbs during a meeting that was designed to help Ukraine convince the U.S. to not side with Russian President Vladimir Putin, who ordered the invasion of Ukraine three years ago. Zelenskiy left the White House early following the meeting, without signing a deal between Ukraine and the U.S. over the joint development of natural resources. "A big driving force of markets now is uncertainty on a lot of different levels, and this is just another part of that," said Jack Mcintyre, portfolio manager at Brandywine Global in Philadelphia. "It looked like we were moving towards progress on a peace deal or a ceasefire between Russia and Ukraine and maybe now that gets to come on hold, so you have to price in a little bit more uncertainty." The euro slumped after the meeting and was last down 0.29% at $1.0367 after dropping to $1.0359, its lowest since February 12. After falling for several months from a more than one-year high hit in September, the single currency has shown signs of stabilizing, partly on hopes a peace deal could be reached. The U.S. dollar initially edged lower on Friday after a reading on inflation was largely as anticipated by investors while consumer spending unexpectedly fell. The Personal Consumption Expenditures (PCE) price index increased 0.3% in January, in line with expectations of economists polled by Reuters, after advancing by an unrevised 0.3% in December. In the 12 months through January, prices rose 2.5% after increasing 2.6% in December. But consumer spending, which accounts for more than two-thirds of U.S. economic activity, dropped 0.2% last month after an upwardly revised 0.8% increase in December. "I have a suspicion that this is idiosyncratic on the spending side in January. At the same time, I wouldn't be surprised if we get real weakness in February and March in view of the decline in consumer confidence," said Thierry Wizman, global FX and rates strategist at Macquarie in New York. The dollar index , which measures the greenback against a basket of currencies, rose 0.23% to 107.61. For the week, the dollar is up about 0.9% but down 0.8% for February, poised for its largest monthly decline since September. Expectations the Federal Reserve will cut rates by at least 25 basis points (bps) at its June meeting edged up after the data, with markets pricing in a 79.1% chance of a cut, up from nearly 70% in the prior session, according to CME's FedWatch Tool , opens new tab. Fed officials have recently indicated they expect the central bank to hold rates steady until there is more clarity surrounding the impact of tariffs on inflation and a slowing economy. Earlier this week, the greenback had fallen nearly 4% from a more than two-year high in January on renewed worries about U.S. economic growth and inflation as Trump shifted tariff deadlines on Canada and Mexico. Investors are also bracing for the labor market impact from actions by the Department of Government Efficiency (DOGE) under Elon Musk. On Thursday, Trump said his proposed tariffs of 25% on Mexican and Canadian goods would take effect on March 4, along with an extra 10% duty on Chinese imports, after some confusion earlier in the week as to whether they would be held off until April. The Canadian dollar weakened 0.14% versus the greenback to C$1.45 while the Mexican peso was down 0.3% versus the dollar at 20.557. Canada's gross domestic product in the fourth quarter expanded by 2.6% on an annualized basis, surpassing widespread expectations for growth of 1.8%, as a jump in consumer spending, business investments and exports lifted growth. Against the Japanese yen , the dollar strengthened 0.53% to 150.59 but has fallen nearly 3% for the month as investors largely expect the Bank of Japan to hike interest rates this year. Sterling weakened 0.23% to $1.2568. Sign up here. https://www.reuters.com/markets/currencies/dollar-firms-trumps-tariffs-loom-yen-set-monthly-gain-2025-02-28/

2025-02-28 06:22

NAIROBI/PARIS, Feb 28 (Reuters) - Cyclone Garance slammed into the French overseas territory of La Reunion with top wind speeds of 155 kph (96 mph) on Friday, blowing away roofs and cutting power and access to drinking water for many residents. The island's prefect, Patrice Latron, said there were no reports so far of any deaths. The cyclone made landfall in the north of the Indian Ocean island, which lies off Madagascar. It exited the southwest of the island several hours later, Meteo France weather agency said. The prefecture said 180,000 households - about 42% of the electricity utility's customers - had lost power, and nearly 10% had no access to drinking water. The prefecture said the worst of the storm had passed and a storm alert had been downgraded from the highest level, purple, to red. This meant rescue workers could now leave their shelters and start to assess damage and help those affected. A mandatory order for residents to stay indoors remained in place and authorities expected rough weather conditions until at least the end of the day. Top winds had dropped to 130 kph (80 mph), Meteo France said, but higher gusts were possible on the southwest of the island, with heavy rains now seen as a bigger risk. In nearby Mauritius, authorities reopened the airport after the threat from the storm eased. Sign up here. https://www.reuters.com/business/environment/reunion-issue-highest-threat-warning-cyclone-approaches-authorities-say-2025-02-28/

2025-02-28 06:06

Trump threatens to withdraw support for Ukraine Zelenskiy urges Trump not to compromise with 'killer' Putin Trump says Zelenskiy not ready for peace if US is involved Zelenskiy leaves White House early without signing minerals deal Follow our LIVE coverage of the Trump-Zelenskiy meeting here WASHINGTON, Feb 28 (Reuters) - Ukrainian President Volodymyr Zelenskiy's meeting with Donald Trump ended in disaster on Friday, after the two leaders clashed in an extraordinary exchange before the world's media at the White House over the war with Russia. Zelenskiy had seen the meeting in the Oval Office as an opportunity to convince the United States not to side with Russian President Vladimir Putin, who ordered the invasion of Ukraine three years ago. Instead U.S. President Trump and Vice President JD Vance laid into Zelenskiy, saying he showed disrespect, driving relations with Kyiv's most important wartime ally to a new low. The Ukrainian leader was told to leave, a U.S. official said. An agreement between Ukraine and the United States to jointly develop Ukraine's rich natural resources, which Kyiv and its European allies had hoped would usher in better relations, was left unsigned and in limbo. European leaders leapt to Zelenskiy's defense. German chancellor candidate Friedrich Merz said "we must never confuse aggressor and victim in this terrible war." Zelenskiy spoke by telephone with French President Emmanuel Macron, NATO Secretary General Mark Rutte and EU Council President Antonio Costa, an official in the Ukrainian delegation in Washington told Reuters. Britain is due to host a meeting of Europe's leaders and Zelenskiy on Sunday to discuss a security backstop to any peace agreement between Moscow and Kyiv. Trump has lurched toward Russia since taking over as president, shocking traditional allies in Europe and beyond and leaving Ukraine increasingly vulnerable. Friday's outburst was the most public display of that shift. The already-tense meeting blew up when Vance stressed the need for diplomacy to resolve the biggest conflict in Europe since World War Two. Zelenskiy, his arms folded, countered that Putin could not be trusted and noted that Vance had never visited Ukraine. "What kind of diplomacy are you talking about, JD?" Zelenskiy asked after recounting failed diplomatic efforts with Russia. "I’m talking about the kind of diplomacy that's going to end the destruction of your country," Vance shot back. Zelenskiy openly challenged Trump over his softer approach toward Putin, urging him to "make no compromises with a killer." Trump, whose team said he and Vance were "standing up for Americans," quickly took to Truth Social after the meeting to accuse Zelenskiy of disrespecting the United States. "I have determined that President Zelenskyy is not ready for Peace if America is involved," he wrote, using an alternative spelling of the leader's name. "He can come back when he is ready for Peace." Trump later told reporters as he left the White House for a weekend at his Florida home that Zelenskiy needs to realize he is losing the war. "What he's got to say is, 'I want to make peace.' He doesn’t have to stand there and say 'Putin this, Putin that,' all negative things. He’s got to say, 'I want to make peace.' I don't want to fight a war anymore," Trump said. Zelenskiy, asked during an interview by Fox News if his relationship with Trump could be salvaged after Friday's eruption, said, "Yes of course" and appeared to express some regret, adding "I'm sorry for this." The head of the Ukrainian armed forces, Oleksandr Syrskyi, posted a statement on Telegram affirming that his troops stood by Zelenskiy and that Ukraine's strength was in its unity. Anxious Ukrainians following from afar largely rallied around their leader but fretted about the prospects of continuing flows of U.S. military aid that the country has relied on. In Congress, reaction from Trump's Republican Party was mixed, while Democrats lambasted his handling of the meeting. The Ukrainian leader conducted the meeting in his non-native English, and as it progressed he was drowned out by Trump and Vance. "You're not in a good position. You don't have the cards right now. With us, you start having cards," Trump said. "I'm not playing cards, I'm very serious, Mr. President," Zelenskiy said. "You're playing cards. You're gambling with the lives of millions of people, you're gambling with World War Three," the U.S. president continued. Former Russian President Dmitry Medvedev appeared to revel in the spectacle, writing on Telegram that the Ukrainian leader had received a "brutal dressing down." EARLY EXIT After the talks, Trump directed two top aides to tell Zelenskiy it was time to leave, even as attendants were preparing to serve lunch to the delegations, according to a White House official. The Ukrainians were instructed to depart despite their desire to continue the talks, the official added. The falling-out meant that Ukraine and the United States failed to sign a much-vaunted minerals deal that Kyiv hoped would spur Trump to back Ukraine's war effort and potentially win support from Republicans in Congress for a new round of aid. Trump is not interested in revisiting the minerals deal at the moment, a senior White House official told Reuters on Friday evening. The clash also undermined efforts by European leaders to convince Trump to provide security guarantees for Ukraine even if he has refused to deploy U.S. soldiers on Ukrainian soil to maintain peace. Such guarantees are seen as crucial to deter Russia from future aggression. Trump instead threatened to withdraw U.S. support from Ukraine. "You're either going to make a deal, or we're out, and if we're out, you'll fight it out. I don't think it's going to be pretty," Trump told Zelenskiy. "Once we sign that deal, you're in a much better position. But you're not acting at all thankful, and that's not a nice thing. I'll be honest. That's not a nice thing." Trump stressed that Putin wants to make a deal. Vance also interjected that it was disrespectful of Zelenskiy to come to the Oval Office to litigate his position, a point Trump agreed with. "You didn't say thank you," Vance said. Zelenskiy, raising his voice, responded: "I said a lot of times thank you to American people." Zelenskiy, who won billions of dollars of U.S. weaponry and moral support from the Biden administration, is facing a sharply different attitude from Trump. Trump wants to quickly wind down the three-year war, improve ties with Russia and recoup money spent to support Ukraine. "I hope I'm going to be remembered as a peacemaker," Trump said. Earlier, Trump told Zelenskiy that his soldiers have been unbelievably brave and that the United States wants to see an end to the fighting and the money put to "different kinds of use like rebuilding." Ukraine has rapidly expanded its defense industry production but remains heavily reliant on foreign military assistance, while also struggling to replenish manpower as it battles a much larger foe. While Ukraine repelled Russia's invasion from the outskirts of Kyiv and recaptured swathes of territory in 2022, Russia still controls around a fifth of Ukraine and has been slowly taking ground since a failed Ukrainian counteroffensive in 2023. Kyiv's troops hold a chunk of land in Russia's western Kursk region after a 2024 incursion. Trump has engaged in a long-distance feud with Zelenskiy in recent weeks, criticizing his handling of the war, calling him a "dictator" and urging him to agree to the minerals deal. He subsequently distanced himself from the "dictator" remark. Sign up here. https://www.reuters.com/world/trump-zelenskiy-sign-minerals-deal-white-house-meeting-2025-02-28/

2025-02-28 06:02

Bitcoin has nearly erased gains since Trump election Lack of U.S. bitcoin reserve, pace of change disappoints Nearly $1 trillion wiped off crypto markets since December LONDON/NEW YORK, Feb 28 (Reuters) - Cryptocurrency prices are down sharply in recent weeks and not expected to rebound soon, with some of the biggest digital currencies erasing nearly all of the gains they made after Donald Trump's election win triggered a wave of excitement across the industry. Some analysts said the market is likely to remain subdued while waiting for a bullish signal, such as indications that the U.S. Federal Reserve plans to cut interest rates or a clear pro-crypto regulatory framework from the Trump administration. Bitcoin , the biggest cryptocurrency, has fallen 21% from a January 20 peak and is back to levels seen shortly after Trump's U.S. presidential election victory in November, as hopes for a strategic bitcoin reserve fade and tariff threats weigh on demand for speculative assets. Other cryptocurrencies have fallen faster, with ether down more than 40% since December. Trump's own so-called meme coin, which he launched days before his inauguration in a move that sparked conflict-of-interest concerns, is down 80% from a January peak, according to CoinMarketCap data. The U.S. president promised a wave of pro-crypto moves during his campaign, vowing to be a "crypto president." He pledged to set up a national bitcoin stockpile while overhauling crypto regulations, and named crypto proponents Howard Lutnick and David Sacks to prominent posts within his administration. Under Trump, the Securities and Exchange Commission has withdrawn investigations into several crypto companies and dropped a lawsuit against Coinbase (COIN.O) , opens new tab, the largest crypto exchange in the U.S. But those moves have had little impact on crypto prices and some industry analysts say expectations about Trump may have been too lofty. In an executive order during his first week in office, Trump ordered the creation of a cryptocurrency working group tasked with proposing new digital asset regulations and looking into creating a national crypto stockpile, to the dismay of some investors who had hoped he would instruct the U.S. to start buying bitcoin. "The market is disappointed with that," said James Butterfill, head of research at asset manager CoinShares. Crypto prices are also facing headwinds from more hawkish monetary policy and Trump's threat of tariffs, he added. "That's increasing all this market uncertainty, which is absolutely not helping bitcoin at all. Until we get (clarity on a bitcoin reserve), I can't see prices recovering significantly," said Butterfill. Since a December peak, almost $1 trillion has been wiped in nominal value from the global crypto market, with total market capitalisation now around $2.76 trillion, according to CoinMarketCap. Some investors have had to reset expectations, with preliminary reports from Trump's new crypto working group not due for at least another month. "The initial excitement surrounding the Trump administration’s perceived pro-crypto stance appears to be in a phase of recalibration," said Gabe Selby, Head of Research at CF Benchmarks, a digital asset index provider. "For sentiment to shift more decisively, a clearer regulatory framework or a major catalyst - such as additional ETF (exchange traded fund) approvals or policy shifts - seems to be necessary." The SEC approved the first ETFs tied to the spot price of bitcoin last year, which catapulted the cryptocurrency to a new record high. Still, some market watchers are as bullish as ever. Standard Chartered analyst Geoff Kendrick is sticking with a target for bitcoin to hit $500,000, against a record high of $109,071, before Trump leaves office. He said central to that is a belief new buyers will enter the market. Regulatory filings in the U.S. showed that while hedge funds remain the dominant crypto buyers, banks and sovereign wealth funds are buying too, Kendrick added. Quarterly filings showed that asset managers boosted allocations to U.S. ETFs tied to the price of spot bitcoin in the fourth quarter of 2024, with Mubadala Investment Co - an Abu Dhabi sovereign wealth fund - reporting a stake in BlackRock's iShares Bitcoin ETF worth $436.9 million. Sign up here. https://www.reuters.com/markets/currencies/crypto-prices-tumble-trump-fuelled-euphoria-fades-2025-02-28/

2025-02-28 05:55

Company files F10 Form to SEC Filling is an important step towards spin off Investor day to be held in New York on March 25 Q4 earnings slightly ahead of forecasts ZURICH, Feb 28 (Reuters) - Holcim (HOLN.S) , opens new tab gave more details of its plan to spin off its North American business on Friday as the building materials company reported better-than-expected earnings for its fourth quarter. Holcim has made a filing to the United States securities regulator about the divestment to shareholders, likely to be one of the biggest deals in the global construction market this year. The Swiss company has submitted a Form 10 registration statement to the SEC, needed to register shares ahead of the spin-off and trading on a U.S. exchange. It contains details about the carved-out business, which Holcim last week said it would call Amrize, including its 2024 revenue of $11.7 billion and adjusted core profit of $3.2 billion. "Today's filing marks an important step towards the planned listing of Amrize and our ambition to become North America's leading building solutions company from foundation to rooftop," Holcim Chairman Jan Jenisch, who is set to be CEO of Amrize, said in a statement. Holcim, said it was track to complete the spin-off in the first half of 2025 and would hold an investor day in New York on March 25. The announcement as Holcim reported its fourth quarter results on Friday. Recurring operating profit rose 4.4% to 1.17 billion Swiss francs ($1.30 billion), beating forecasts for 1.14 billion, while sales of 6.47 billion francs, down 1.9% from a year earlier, were in line with market expectation. Holcim said its North American business had secured work on more than 200 infrastructure projects in the region and expected the reshoring of manufacturing to drive growth in 2025. Still, it could be a difficult year for parts of the U.S. construction market, the Portland Cement Association said. "Continued high mortgage rates have subdued residential construction activity," said Brian Schmidt, from the PCA, noting that commercial investments were also being delayed. Holcim, which said it expected to increase its sales, when measured in local currencies, in the mid single-digit percentage range in 2025, will hold an investor day for its non-North American business on March 28. ($1 = 0.8988 Swiss francs) Sign up here. https://www.reuters.com/markets/commodities/cement-maker-holcim-beats-earnings-forecasts-fourth-quarter-2025-02-28/