2024-11-14 05:09

TOKYO, Nov 14 (Reuters) - The growing presence of non-bank financial institutions (NBFI) warrants attention, as some reports show they account for almost half of financial intermediations globally, Bank of Japan Deputy Governor Shinichi Uchida said on Thursday. "Financial and capital markets are often affected by NBFIs' strategies and activities, as we observed very recently," Uchida said in a speech delivered to an annual meeting of the International Association of Deposit Insurers. "As the relationship between NBFIs and the banking sector deepens, deterioration in the non-bank sector could spill over to the entire financial system via financial markets," which require scrutiny, he said. Sign up here. https://www.reuters.com/business/finance/boj-calls-vigilance-presence-non-bank-financial-institutions-2024-11-14/

2024-11-14 04:48

Bitcoin pulls back from record high Yen trades below 156 per dollar Euro hits weakest since November 2023 Dollar index hits one-year high NEW YORK, Nov 14 (Reuters) - The U.S. dollar strengthened against major peers on Thursday, trading at a one-year high and headed for a fifth straight session of gains, propelled by market expectations since Donald Trump clinched a dramatic return to the White House. Markets anticipate that the incoming Trump administration will impose trade tariffs and tighten immigration as well as deepen the deficit, measures deemed to be inflationary. The president-elect's Republican Party will control both houses of Congress when he takes office in January, Edison Research projected on Wednesday, giving him wide powers to push his agenda. The greenback climbed above 156 yen for the first time since July and was last up 0.56% to 156.38 per dollar. The euro slumped to its weakest since November 2023 and was down 0.45% at $1.05165 in choppy trading. Sterling hit its lowest on the dollar in four months and was last down 0.44% to $1.2651. Following his election, the market has been looking at Trump's appointment and seeing that he is not going to compromise on his campaign goals, whether it's tariffs or China, said Steven Englander, head of G10 FX strategy at Standard Chartered in New York. "The market is assuming that he's going to go ahead and implement all the things that he's promised to do," he said. U.S. producer prices picked up in October, the Labor Department reported on Thursday, a day after data showed that consumer inflation had barely budged last month. The number of Americans filing new applications for unemployment benefits fell last week, suggesting labor market strength, according to the Labor Department. The data did not change views that the Federal Reserve would deliver a third interest rate cut next month. Fed chair Jerome Powell said on Thursday there was no need to rush rate cuts given the strong U.S. economy. His speech echoed earlier comments on Thursday by Federal Reserve governor Adriana Kugler and Richmond Fed President Thomas Barkin. The U.S. dollar index , which measures the currency against six top counterparts including the euro and the yen, rose 0.17% to 106.64, after reaching as high as 107.07, its highest since early November 2023. The yield on benchmark U.S. 10-year notes fell 3.7 basis points to 4.414%. Bitcoin pulled back from a record high of $93,480 overnight and was last up 0.96% to $89,489. Trump has vowed to make the United States "the crypto capital of the planet." Ethereum declined 0.27% to $3,144. The Swiss franc remained under pressure against the dollar, which was up 0.3% to 0.889 franc. The Australian dollar fell to a three-month low after marginally weaker jobs data, weakening to as low as $0.6453. "The price action that we've had is expected given the election outcome and the logic behind it is built on expectations rather than actualities: expectations of fiscal stimulus, tariffs and deregulation," said Daragh Maher, head of FX strategy, Americas, at HSBC in New York. "We've been in the dollar-bullish camp, so this seats neatly with our narrative, but clearly there's been a big repricing." Sign up here. https://www.reuters.com/markets/currencies/dollar-one-year-high-trump-trade-momentum-eclipses-fed-easing-view-2024-11-14/

2024-11-14 03:01

MUMBAI, Nov 14 (Reuters) - The Indian rupee is likely to dip to a lifetime low on Thursday in wake of the dollar and U.S. rates extending their post-U.S. election rally. The 1-month non-deliverable forward indicated that the rupee will open at 84.42-84.44 to the U.S. dollar compared with 84.3775 in the previous session and past the all-time low of 84.4125 hit on Tuesday. The dollar index rose to 106.64 in Asia, the highest in a year. The index has now rallied nearly 3% following Donald Trump's win. Meanwhile, the 10-year U.S. Treasury yield has climbed to 4.48%, the highest in 3-1/2 months. Trump's expected policies of imposing tariffs on imports and tax cuts have prompted investors to pile on the U.S. dollar and dump U.S. Treasuries. On the back of the relentless up move on the dollar, the rupee has been making new lows. Nevertheless, the rupee has declined much less than its Asian peers, thanks largely to the Reserve Bank of India's support. The central bank has been allowing the currency to depreciate following the U.S. elections at a pace that it reckons will not spur excessive volatility. "The price action is all you need to see to make out that the direction (on dollar/rupee) is higher, and the rate at which it will move up will be quite unspectacular," a currency trader at a bank says. The next "obvious" key level to watch is 84.50, he said. DOLLAR NOT BOTHERED BY FED OUTLOOK The odds that the Federal Reserve will cut rates at next month's meeting jumped following the in-line October U.S. inflation data. Per the CME FedWatch Tool, the probability that the Fed will slash borrowing cost by 25 basis points at the December meeting are now at 84%, up from 60% a day prior. KEY INDICATORS: ** One-month non-deliverable rupee forward at 84.54; onshore one-month forward premium at 9.50 paise ** Dollar index up at 106.64 ** Brent crude futures down 0.3% at $72.1 per barrel ** Ten-year U.S. note yield at 4.48% ** As per NSDL data, foreign investors bought a net $336.9 mln worth of Indian shares on Nov. 12 ** NSDL data shows foreign investors sold a net $43 mln worth of Indian bonds on Nov. 12 Sign up here. https://www.reuters.com/markets/currencies/another-day-all-time-low-rupee-dollar-us-rates-extend-rally-2024-11-14/

2024-11-14 01:01

Australia employment +15.9k, misses forecasts for 25k rise Jobless rate at 4.1%, little changed for past six months Investors still see first cut around mid-2025 SYDNEY, Nov 14 (Reuters) - Australia's employment growth slowed in October after a strong run, but the jobless rate stayed low and underlying trends remained relatively healthy, suggesting there is little rush to cut interest rates. Figures from the Australian Bureau of Statistics on Thursday showed net employment rose 15,900 in October from September, when they jumped by a revised 61,300. That was the smallest increase in seven months and came in under market forecasts for a 25,000 rise, but annual jobs growth still ran at a strong 2.7%. Gains were again driven by full-time roles. The jobless rate held at a historically low 4.1%, where it has been since April, while the participation rate edged down to 67.1% from an all-time high of 67.2%. National Australia Bank on Thursday pushed out its call for the first rate cut from the Reserve Bank of Australia to May from February given the overall strength in the labour market. Other major Australian banks still tipped February for the start of the easing cycle. "Given the data flow to date, it now looks unlikely the RBA will have enough confidence in the trajectory of inflation by then. There is a real risk that policy rates stay on hold even deeper into 2025," NAB analysts said in a note. There was muted market reaction, with the Australian dollar little changed at $0.6485 and three-year bond futures also unchanged at 95.78. Markets maintained bets that a first easing in Australia would come most likely in May or July next year. The RBA has held its policy steady for a year now, judging the current cash rate of 4.35% - up from 0.1% during the pandemic - is restrictive enough to bring inflation to its target band of 2-3% while preserving employment gains. With the labour market surprisingly strong, the prospects of a near-term rate cut are slim. The central bank has said monetary policy will stay restrictive until it is confident inflation is moving sustainably to target. Headline inflation slowed to 2.8% in the third quarter but that was only due to government electricity rebates. Underlying inflation remained high at 3.5%. Markets imply just a 10% chance the RBA might cut at the last meeting of the year on Dec. 10, and only a 28% probability of a move at its following meeting in February. The job report showed hours worked rose 0.1% in October, up for a fifth straight month, while the underemployment rate eased 0.1 percentage point to 6.2%. "I think it does nothing really but underscore a pretty resilient, firm labour market that continues to err on the tight side. So despite a miss on headline employment... it is still a very decent result all around," said Su-Lin Ong, chief economist at RBC Capital markets. "I think from the perspective of the Reserve Bank, we would argue that... you need to see some loosening up in this labour market before they will feel comfortable cutting rates." Sign up here. https://www.reuters.com/world/asia-pacific/australia-employment-rises-15900-oct-jobless-holds-41-2024-11-14/

2024-11-13 23:54

Nov 13 (Reuters) - Venture Global LNG is planning to raise about $3 billion from its initial public offering in New York that could come as soon as this year, according to people familiar with the matter. Venture Global is working with banks, including Goldman Sachs and JPMorgan Chase, on the listing plans, the people said. The Arlington, Virginia-based company is one of the biggest suppliers of liquefied natural gas in the United States. Earlier this month, federal regulators gave Venture Global LNG the permission to introduce natural gas into its Plaquemines export plant in Louisiana, bringing the facility closer to producing the superchilled gas. Once it hits commercial startup, the company's Plaquemines export plant will make Venture Global the second-largest U.S. LNG producer with the capacity to export over 30 million metric tons per annum (MTPA) from its Calcasieu Pass and Plaquemines facilities, both in Louisiana. A potential $3 billion IPO by Venture Global would be among the year's biggest listings globally, according to data compiled by LSEG. Venture Global did not immediately respond to a request for comment. Goldman Sachs declined to comment. Cold storage giant Lineage's (LINE.O) , opens new tab $4.44 billion New York IPO in July and Hyundai Motor India's (HYUN.NS) , opens new tab $3.33 billion Mumbai IPO last month are the only listings that have raised over $3 billion this year, LSEG data showed. Bloomberg News reported the development earlier in the day. In September, natural gas producer BKV Corp (BKV.N) , opens new tab also went public in New York after raising $270 million in its U.S. IPO. Sign up here. https://www.reuters.com/business/energy/venture-global-lng-plans-raise-3-bln-us-ipo-sources-say-2024-11-13/

2024-11-13 23:52

TOKYO, Nov 14 (Reuters) - The Japanese government is making arrangements to compile a supplementary budget of about 13.5 trillion yen ($87 billion) to fund a stimulus package to help low-income households and offset rising prices, the Sankei newspaper reported late on Wednesday. Under the plan, the government would provide 30,000 yen ($193) to low-income households that are exempt from paying residential taxes, and 20,000 yen per child for households with families, the paper said. It is also considering restarting subsidies for electricity and gas prices from January to respond to high fuel costs, media reports have said. Prime Minister Shigeru Ishiba is looking to finalise the stimulus package on Nov. 22, the Sankei said. ($1 = 155.3700 yen) Sign up here. https://www.reuters.com/world/japan/japan-planning-87-billion-extra-budget-fund-stimulus-package-paper-says-2024-11-13/