2026-02-07 23:23

SYDNEY, Feb 8 (Reuters) - Tropical Cyclone Mitchell intensified on Sunday, Australia's weather bureau said, as it tracked towards the country's remote northwest, home to the world's biggest iron-ore export hub of Port Hedland. Port Hedland, as well as the nearby ports of Ashburton, Cape Preston West, Dampier and Varanus Island, closed on Saturday as Mitchell developed off the coast of Western Australia's resource-rich Pilbara region, Pilbara Ports said. Sign up here. On Sunday, the weather bureau said Mitchell had strengthened to a Category 3 cyclone with wind gusts of up to 195 kph (121 mph). Category 3 storms, two levels below the most severe, typically bring winds that damage structures, crops and trees, and cause power failures, according to the weather bureau. The federal agency forecast Mitchell to make landfall between the towns of Exmouth and Onslow late on Sunday or early Monday morning local time. "Widespread moderate to heavy rainfall which may lead to flash flooding is likely over the west Pilbara coast," it said on its website. Port Hedland, about 1,300 km (800 miles) north of the state capital, Perth, is the world's biggest export point for iron ore and is used by miners including BHP Group, Fortescue and billionaire Gina Rinehart's Hancock Prospecting. Pilbara Ports said on Friday its ports were being cleared due to the emerging cyclone risk. https://www.reuters.com/business/environment/tropical-cyclone-mitchell-approaches-western-australias-pilbara-region-ports-2026-02-07/

2026-02-07 22:07

Takaichi's ruling coalition secures supermajority in lower house Japan's first female leader gambled on rare winter snap election She has seen strong ratings since becoming PM in October Takaichi has strained ties with Beijing, rattled markets TOKYO, Feb 8 (Reuters) - Japanese Prime Minister Sanae Takaichi's coalition swept to a historic election win on Sunday, paving the way for promised tax cuts that have spooked financial markets and military spending aimed at countering China. The conservative Takaichi, Japan's first female leader who says she is inspired by Britain's "Iron Lady" Margaret Thatcher, delivered 316 seats of the 465 in parliament's lower house for her Liberal Democratic Party, its best ever result. Sign up here. With coalition partner, the Japan Innovation Party, known as Ishin, Takaichi controls 352 seats and a supermajority of two-thirds of seats, easing her legislative agenda as she can override the upper chamber, where she does not have a majority. WINTER ELECTION BRINGS BLIZZARD OF VOTES "This election involved major policy shifts — particularly a major shift in economic and fiscal policy, as well as strengthening security policy," Takaichi said in a television interview as the results rolled in. "These are policies that have drawn a great deal of opposition ... If we have received the public's support, then we truly must tackle these issues with all our strength." U.S President Donald Trump congratulated Takaichi on the result, wishing her "great success in passing your Conservative, Peace Through Strength agenda" in a social media post. "Sanae's bold and wise decision to call for an election paid off big time," said Trump, who will host Takaichi at the White House next month. Takaichi, 64, called the rare winter snap election to capitalise on her buoyant personal approval ratings since she was elevated to lead the long-ruling LDP late last year. Voters have been drawn to her straight-talking, hardworking image, but her nationalistic leanings and emphasis on security have strained ties with Japan's powerful neighbour China, while her promises of tax cuts have rattled financial markets. Residents trudged through snow to cast their ballots with record snowfall in some parts snarling traffic and requiring some polling stations to close early. It was only the third postwar election held in February, with elections typically called during milder months. Outside a polling station in the town of Uonuma in the mountainous Niigata prefecture, teacher Kazushige Cho, 54, braved below-freezing temperatures and deep snow to cast his vote for Takaichi's Liberal Democratic Party. "It feels like she’s creating a sense of direction - like the whole country is pulling together and moving forward," Cho said. But Takaichi's election promise to suspend an 8% sales tax on food to help households cope with rising prices has rattled investors concerned about how the nation with the heaviest debt burden among advanced economies will fund the plan. Takaichi said on Sunday she would speed up consideration of the sales tax cut while focusing on fiscal sustainability. "Her plans for the cut in the consumption tax leave open big question marks about funding and how she's going to go about making the arithmetic add up," said Chris Scicluna, head of research at Daiwa Capital Markets Europe in London. PROPELLED BY YOUTH-LED CRAZE The head of Japan's top business lobby Keidanren, Yoshinobu Tsutsui, welcomed Takaichi's win as restoring political stability. "Japan's economy is now at a critical juncture for achieving sustainable and strong growth," he said. The LDP, which has ruled for almost all of Japan's postwar history, had lost control of both houses in elections over the past 15 months under Takaichi's predecessor, Shigeru Ishiba. Takaichi has managed to turn around the party's fortunes by striking a chord with younger voters. She has even sparked a "sanakatsu" craze, roughly translated as "Sanae-mania". Her handbag and the pink pen she scribbles notes with in parliament have been in high demand. China is not a fan, however. Weeks after taking office, Takaichi touched off the biggest dispute with Beijing in over a decade by publicly outlining how Tokyo might respond to a Chinese attack on Taiwan, the democratic island claimed by China. China responded with several countermeasures, including urging its citizens not to travel to Japan. Taiwan President Lai Ching-te was one of the first foreign leaders to congratulate Takaichi, saying he hoped her victory would "bring a more prosperous and secure future for Japan and its partners in the region". Takaichi's strong mandate could accelerate her plans to bolster Japan's defences, further angering Beijing, which has cast her as attempting to revive its militaristic past. Japan's Defense Minister Shinjiro Koizumi told TV stations on Sunday evening that he wanted to push ahead with policies to strengthen Japan's defence while pursuing dialogue with China. "Beijing will not welcome Takaichi’s victory," said David Boling, principal at the Asia Group, a firm that advises companies on geopolitical risk. "China now faces the reality that she is firmly in place — and that its efforts to isolate her completely failed." https://www.reuters.com/world/china/japan-votes-test-pm-takaichi-snow-weighs-turnout-2026-02-07/

2026-02-07 21:04

South Africa sees ECB repo lines as beneficial for trade with Europe Central bank expects further rate cuts amid slowing inflation Kganyago dismisses BRICS currency without central bank COVENTRY, England, Feb 7 (Reuters) - South Africa would be keen to utilise new European Central Bank repo lines if available, the country's central bank head Lesetja Kganyago said on Saturday, adding that his country's interest-rate-cutting cycle still had some way to go. ECB President Christine Lagarde said this week the bank was planning to make its repo liquidity lines cheaper and easier to access in an effort to boost the euro's international role. The repo lines allow foreign central banks to borrow euros against collateral denominated in the single currency and are designed for times of crisis. Sign up here. South Africa's veteran central bank head Kganyago said his country would benefit from the lines, given the vast amount of trade and investment that comes from Europe. "To the extent that you'd have a repo line with the ECB, that would help to underpin that trade," Kganyago said in an interview on the sidelines of the Warwick Economics Summit in Coventry, England. "It would be a welcome development." CENTRAL BANK WATCHING FOR SLOWING INFLATION On South Africa's own interest rates, he said last month's decision to keep them at 6.75% meant they were "still distant from the terminal rate." Policymakers want to see inflation slow further before it starts moving again, but their current projection is for two more 25-basis-point rate cuts this year, plus another next year. "This forecast of the rate path is not a policy commitment, it's a guideline that changes from meeting to meeting," Kganyago said. One of the things that has helped drive inflation down over the last year has been the sharp rise of the rand . That has only started to falter in recent weeks amid jittery global markets, including gold, of which South Africa is a major producer. But Kganyago sees little issue, viewing the broader rise as an acknowledgement of improvements in economic policies. "What is also important to note here is that the volatility of the currency has declined. The rand used to be a very volatile currency." BUILDING BRICS Kganyago, in his third term as governor, also talked about the "weaponisation" of the international financial system. He stressed emerging market economies were not engaged in any deliberate attempt to dethrone the U.S. dollar, but are looking to protect themselves from the kind of treatment Russia saw when it was cut off from critical financial plumbing such as the SWIFT messaging system. Access to dollar channels is clearly "a privilege, not a right," Kganyago said, but stressed the dollar would remain dominant and that he sees little prospect of a BRICS currency. It is an idea floated by Russia and Brazil and is expected to be a topic of discussion when India hosts the BRICS summit later this year, despite U.S. President Donald Trump threatening 100% tariffs on any nation that joins it. "I do not see how they (BRICS countries) do it without a BRICS central bank," Kganyago said. He also said South Africa's currency reserves composition — roughly 60% in dollars at the moment — reflected trade patterns and will not change unless those flows shift. The true motivation for fast‑payment system interoperability, he argued, is reducing the high cost and friction of cross‑border payments, especially in Africa, where non‑convertibility forces trade to be invoiced in dollars through multi‑bank chains. https://www.reuters.com/world/africa/south-africa-keen-utilise-new-ecb-repo-lines-central-bank-governor-says-2026-02-07/

2026-02-07 15:57

India to cut duties on high-end U.S. cars to 30% India to eliminate tariffs on Harley-Davidson bikes No tariff concession for U.S. electric vehicles NEW DELHI, Feb 7 (Reuters) - India will slash tariffs on high-end American cars to 30% from as high as 110% and eliminate duties on Harley-Davidson bikes under an interim trade pact, an official said, but will not make concessions for electric vehicles, a move that pointedly leaves Tesla (TSLA.O) , opens new tab out. The U.S. and India moved closer to a trade pact after releasing an interim framework on Friday, days after President Donald Trump said duties on Indian exports would be cut to 18% from 50% in exchange for New Delhi halting purchases of Russian oil. Sign up here. Under the deal, tariffs on traditional internal-combustion cars with engine capacity above 3,000 cc would fall gradually to 30% over 10 years, an Indian government official said. TESLA SHUT OUT OF TARIFF CUTS Electric vehicles have been excluded from the deal, the official added, shutting the door on a possible lower-tariff entry route for Tesla - ignoring a key demand from Elon Musk, who has frequently criticised India's high duties. The stance contrasts with the broader auto access India has offered to the European Union, where New Delhi agreed to steeper tariff cuts to as low as 10%, across a wider range of vehicles, including eventual concessions on some electric vehicles. India, the world's third-largest car market after the U.S. and China, has long protected its domestic auto industry with steep import tariffs of 70% to 110%. It currently imports few cars from the U.S., although it does bring in high-end motorcycles such as Harley-Davidsons, and other premium motorbikes will also receive reduced duties, the official said. The official, aware of the discussions, declined to be identified as the details of the interim pact have not been fully disclosed. India's trade ministry did not immediately respond to an emailed request for comment outside usual office hours. The tariff cuts are likely to be implemented after the two sides sign an agreement in March. https://www.reuters.com/business/autos-transportation/india-us-trade-deal-gives-tariff-free-access-harley-bikes-no-reprieve-tesla-2026-02-07/

2026-02-07 15:12

BUDAPEST, Feb 7 (Reuters) - Hungary's opposition Tisza party plans to introduce a wealth tax for the rich, adopt the euro currency and firmly anchor Hungary in the European Union and NATO, its 240-page election programme published on Saturday said. The centre-right party presents the biggest challenge to nationalist Prime Minister Viktor Orban's rule since his Fidesz party swept to victory in 2010 although the outcome of the April 12 parliamentary election remains highly uncertain. Sign up here. Tisza is led by former government insider Peter Magyar, who has said the party will curb corruption and unlock billions of euros in frozen EU funds to boost the economy. The party's programme reiterated those points and added plans to cut income tax for those earning less than the median wage and an annual tax for the wealthiest. "For those with wealth exceeding 1 billion forints ($3.13 million), we will introduce an annual 1% wealth tax on the portion of their wealth above that threshold," it said. Tisza also pledged in the programme to end Hungary's dependence on Russian energy by 2035 and to double the share of renewable energy sources by 2040. The party said it was committed to covering Hungary's growing energy needs by building a nuclear plant but that a Tisza government would conduct a "comprehensive review" of the Russian-built Paks 2 nuclear plant project if it wins power. If Tisza wins the election, it will also "set a foreseeable and achievable target date" for introducing the euro. The programme, titled "The foundations of a functioning and humane Hungary", also promised to bring necessary changes to key public services. "We will immediately begin overhauling healthcare, education, the welfare system, the child protection system and public transport," Magyar said in a video presenting the programme. In most opinion polls, Tisza has an 8-16 percentage point lead over Orban's Fidesz among decided voters. Pro-government pollsters still show a Fidesz lead, and many voters are still undecided. ($1 = 319.4700 forints) https://www.reuters.com/business/hungarys-opposition-tisza-promises-wealth-tax-euro-adoption-election-programme-2026-02-07/

2026-02-07 15:00

Feb 7 (Reuters) - Algeria has begun the process of cancelling its air services agreement with the United Arab Emirates, signed in Abu Dhabi in May 2013, state media said on Saturday. It gave no immediate reason for the move, but Algerian media outlets have strongly criticised the UAE in recent months, accusing it of attempting to sow regional discord. Sign up here. "Algeria has initiated procedures to terminate the air services agreement with the United Arab Emirates, signed in Abu Dhabi on 13 May 2013 and ratified by a presidential decree dated 30 December 2014," the North African country's state-owned radio said. "Under Article 22 of the agreement, the Emirati side must be formally notified of the termination through diplomatic channels. The Secretary-General of the International Civil Aviation Organization (ICAO) will also be notified to undertake the necessary procedures within the organization." There was no immediate comment from the UAE. In October last year, Algerian President Abdelmadjid Tebboune said his country's relations with all Gulf states were warm except for one country, in a thinly veiled reference to the UAE. He cited relations with Saudi Arabia, Kuwait, Oman and Qatar as "brotherly". He accused the unnamed country of meddling in Algeria's internal affairs and seeking to destabilise it. https://www.reuters.com/world/middle-east/algeria-begins-cancel-air-services-agreement-with-uae-2026-02-07/