2025-10-21 10:37

Russians estimated to hold 1,000 tons of gold Fintech startups seek to buy gold during rally Government authorised AI-powered automated sales Russians sceptical, see gold as safe asset MOSCOW, Oct 21 (Reuters) - Financial tech firms are using AI to try to persuade Russians to cash in their gold at automated machines, although despite this year's more than 60% price rally they are facing scepticism. Russia, which holds more than a third of its reserves in gold, authorised automated sales of the precious metal last year. But while the companies rolling out the ATMs say interest in selling has risen, Russians have not rushed to part with their gold in the same way as people have elsewhere. Sign up here. Russians are not only hoping for further price rises, some say they see few alternatives to gold in terms of investment safety as sanctions have made it hard for them to invest in Western currencies or other assets. Some Russian families hold gold coins minted by the country's last Tsar, Nicholas II, which have been passed down through generations - surviving the 1917 revolution, Communist purges, World War Two and the collapse of the Soviet Union. But this deep attachment to gold, with Russians estimated to hoard a total of 1,000 metric tons of bullion, is not deterring the entrepreneurs who say they are making it easier to cash in. "Many people, while gold prices are high, are ready to exchange their reserves for real money," said Evgeny Gorodilov, co-founder of Goldexrobot, a startup aiming to install 600 gold ATMs in shopping centres across Russia. Gorodilov said that sales through traditional channels, such as pawnshops or, more recently, electronic trading platforms, have deterred many people due to opaque valuation processes, suspicions of unfair pricing and fraud risks. Goldexrobot's ATMs use AI to carry out spectral, hydrostatic and metal density analyses to verify the authenticity of the gold and then offer a price using the latest quotes for the metal from the Moscow Stock Exchange. To start a transaction, the customer must complete an identification process. A gold item is inserted into a slot for valuation. The proposed price appears on a display, and if accepted, the payment is sent to the customer's bank card. Russia's central bank tested the technology through its regulatory sandbox before it was allowed to enter the market. While Gorodilov said that its customers had grown by about 10% this year, he has not seen explosive growth in private gold sales since most Russians expect prices to rise further. SAFETY CUSHION IN CASE OF HYPERINFLATION Russia removed the value-added tax (VAT) on gold sales for investment purposes in 2022 as Western sanctions took effect, which resulted in sales soaring fivefold in 2023. And sales have continued to rise, with Russia's Finance Ministry advising investors to keep long-term savings in gold. "I bought gold not with the aim of making a profit in the near future, but with the aim of creating a safety cushion for myself in case of hyperinflation," said Dmitry Semenov, a private gold investor. MGKL Group, which owns a network of pawnshops across Russia, said demand for gold jewellery, which it either resells or holds as collateral, doubled in the first nine months of 2025. The metal's wider appeal is also in evidence at the St. Petersburg Stock Exchange, which launched trading in physical gold on October 20, saying that the world's second-largest gold producer needs its own price benchmark. And for some investors the ATMs are not the way forward. "Gold ATM? No, why sell something at a discount when getting full price is possible. In 2026, I am confident there will be further growth in the value of gold. This is related to global instability and increasing rates of inflation," said Semenov. https://www.reuters.com/sustainability/boards-policy-regulation/ai-driven-atms-target-sceptical-russians-cash-their-gold-2025-10-21/

2025-10-21 09:44

LONDON, Oct 21 (Reuters) - Britain's inflation rate looks set to hit 4% in September in data due for release on Wednesday, the highest among the world's big rich economies and double the Bank of England's target. The fast pace of price growth - while a lot lower than a peak of 11.1% in 2022 following Russia's invasion of Ukraine -puts a strain on households and means borrowing costs are likely to stay higher than in other countries, at least in the short term. Sign up here. It also adds to the challenge for finance minister Rachel Reeves who has promised voters that she will ease cost-of-living pressures and speed economic growth but is likely to raise taxes in her budget next month, potentially adding to inflation. Below is an explanation of Britain's price growth problem. WHY IS UK INFLATION SO HIGH? Britain's inflation rate was 3.8% in August, much higher than the euro zone's 2.0%. A driver of British prices has been fast wage growth due in part to a worker shortage since the COVID-19 pandemic and increases to the minimum wage and employer taxes. Like in other countries, energy and food prices rose earlier this year. Energy prices had exerted significant downward pressure on inflation in late 2023 and 2024. WHAT ELSE IS DRIVING UK INFLATION? Government-influenced prices are another factor. Higher sewerage charges, bus fares and vehicle excise duty and the introduction of value added tax on private school fees mean so-called administered prices in Britain have risen more sharply than in the euro zone. Jack Meaning, chief UK economist at Barclays, estimated Britain's inflation rate in August would have been around 2.9 excluding the impact of tax increases in Reeves' budget last year and of administered prices. While the BoE expects regulated electricity and gas prices to stop driving inflation in the coming months, food prices are likely to rise further. Food retailers blame the increase in prices to date on a new packaging tax as well as the hike in employers' social security contributions and the minimum wage and global prices. The BoE fears higher food prices drive up inflation expectations which can lead to price pressures becoming embedded in the economy. WHY DOES IT MATTER? British households - excluding pensioners - have seen very little growth in their living standards since 2010, when taking inflation into account. Wage growth is running not far above inflation and is slowing, limiting any recovery in spending power. High inflation also adds to the government's debt bill - Britain has a bigger proportion of its bonds indexed to inflation than other countries, putting further strain on the budget at a time when other spending demands are rising too. High inflation can slow long-term economic growth if it makes households want to save more to withstand future price shocks and deters businesses from developing longer-term plans. WHAT'S LIKELY TO HAPPEN? The BoE has forecast that consumer price inflation will peak in September but will only return to its 2% target in the April-to-June period of 2027. Governor Andrew Bailey and his colleagues say the outlook for inflation is still unclear, making it hard to predict when interest rates are likely to be cut again. https://www.reuters.com/sustainability/sustainable-finance-reporting/why-is-inflation-so-high-uk-2025-10-21/

2025-10-21 09:07

Oct 21 (Reuters) - Asian bonds experienced significant outflows in September, driven by a selloff in Indonesia amid rising fiscal and political concerns, alongside a broader slowdown in regional economic activity that dampened investor sentiment. Foreigners offloaded a net $5.48 billion worth of regional bonds - the most since March 2022 - in Indonesia, Malaysia, Thailand, India and South Korea, data from local regulatory authorities and bond market associations showed. Sign up here. Indonesian bonds recorded a net foreign outflow of $4.6 billion in September, the largest monthly outflow since at least 2016, as fiscal concerns intensified following widespread protests and the abrupt removal of Finance Minister Sri Mulyani Indrawati. Foreigners also shed a net $1.63 billion worth of Malaysian bonds in their biggest monthly disposal since October 2024. Industrial production in most of Asia's major economies weakened in September, weighed down by signs of lacklustre U.S. growth, the anticipated effects of President Donald Trump's tariffs, and persistently soft demand from China. "Weakness in domestic demand will also continue to constrain growth in most of the region," Khoon Goh, head of Asia research at ANZ, said in a report earlier this month. "As a result, Asian assets could be less supported over the medium term," ANZ's Goh said. Last month, South Korean, Indian and Thai bonds saw minor inflows of $563 million, $124 million and $60 million, respectively. https://www.reuters.com/world/asia-pacific/asian-bond-outflows-september-hit-3-12-year-high-slowdown-concerns-2025-10-21/

2025-10-21 07:53

Ukraine drones hit Russia's Orenburg gas processing plant Gas from Karachaganak is being processed at the Orenburg plant Shell, Eni, Chevron are among Karachaganak stakeholders ALMATY/ASTANA, Oct 21 (Reuters) - Oil majors, including Chevron (CVX.N) , opens new tab and Shell (SHEL.L) , opens new tab, have reduced oil and gas output at a top Kazakhstan field after a Ukrainian drone strike damaged a gas processing plant in Russia that supports their operations, the companies said on Tuesday. The strike on the Orenburg gas plant, located about 1,700 km (1,056 miles) east of Ukraine, marks the first known incident in Kyiv's campaign against Russian energy infrastructure to disrupt the operations of Western oil majors abroad. Sign up here. Kazakhstan's energy minister, Erlan Akkenzhenov, said on Tuesday the Karachaganak oil and gas condensate field had reduced daily production by between 8,500 metric tons (66,810 barrels) and 9,000 tons following the strike. He added that he hoped restrictions on production would be lifted within three days. Speaking to journalists in the Kazakh capital Astana, Akkenzhenov said that restrictions on shipping Kazakh gas to the Orenburg plant would have "a certain economic impact", but that it would not affect the domestic fuel market. Raw gas from Karachaganak is usually delivered across the border to the Orenburg processing plant. Oil and gas output at Karachaganak is closely linked, meaning the field is not able to produce much oil if its gas production is down. PRODUCTION CUTS HIT MAJOR OILFIELD Karachaganak is operated by a consortium comprising U.S. major Chevron, which holds 18%, and European energy firms Shell and Eni (ENI.MI) , opens new tab, which both own 29.25% each. Russia's Lukoil and Kazakhstan's KazMunayGaz also hold stakes of 13.5% and 10%, respectively. Energy and minerals giant Kazakhstan accounts for around 2% of global oil production, most of which is shipped to world markets via Russia. The operator of the Karachaganak oil and gas condensate field told Reuters earlier on Tuesday that it cut production volumes following "an incident" at Russia's Orenburg plant. On Monday, two industry sources told Reuters that a Ukrainian drone attack on the Orenburg gas processing plant, one of the world's largest, forced neighbouring Kazakhstan to reduce production at the Karachaganak field by 25% to 30%. KARACHAGANAK FIELD SLASHES DAILY OUTPUT Output at Karachaganak on Monday fell to between 25,000 metric tons (196,500 barrels per day) and 28,000 tons from the usual level of 35,000-35,500 tons, according to two sources who spoke on condition of anonymity due to the sensitivity of the situation. Ukraine, which has stepped up strikes on Russia's energy facilities in recent months, confirmed on Monday that it hit a gas plant in the Orenburg region and an oil refinery in the Samara region. Kazakhstan's energy ministry also said on Monday that Karachaganak trimmed production. The operator did not provide production data. The ministry said production at Karachaganak was expected to return to normal once operations at the Orenburg plant, with gas reception at the facility anticipated soon. Kazakhstan introduced sweeping price controls on fuel and utility tariffs last week, amid accelerating inflation which was at 12.9% in September amid fallout from the Ukraine war. In February, a separate Ukrainian drone strike on a pumping station serving the CPC briefly disrupted oil loadings at Novorossiisk, underlining the vulnerability of regional energy infrastructure to the widening conflict. https://www.reuters.com/business/energy/kazakhstans-karachaganak-cuts-output-after-drone-hits-russian-gas-plant-2025-10-21/

2025-10-21 07:48

Dollar funding volatile, says ECB's Lane No significant liquidity strain so far - Lane Banks have built up dollar liquidity FRANKFURT, Oct 21 (Reuters) - Euro zone banks may come under pressure if U.S. dollar funding - the lifeblood of financial markets - were to dry up, the European Central Bank's chief economist Philip Lane said on Tuesday amid concern over U.S. President Donald Trump's policies. Dollar funding fears have been at the back of central bankers' minds since Trump announced a wave of trade tariffs and began putting pressure on the Federal Reserve earlier this year. Sign up here. Lane said euro zone banks had navigated the turmoil well but could still find themselves in a tight spot given their significant exposure to the dollar, which accounted for anywhere between 7% and 28% of all their liabilities and 10% of assets in the second quarter of the year. Any sudden changes in these net exposures could not be ruled out and could potentially limit banks' lending to the economy, he said. "An increased probability of such a risk event would then generate pressures on both sides of banks’ balance sheets and potentially downward pressure on on-balance sheet exposures like loans to the real economy," Lane added. European banks typically borrow dollars from U.S. banks and other financial institutions. This makes this form of funding less reliable in a crisis than deposits, which tend to move more slowly. ECB supervisors have been telling banks to watch their dollar exposures and reduce any mismatch between their assets, such as loans, and liabilities - each bank's own borrowing. Central bankers from outside the United States have even toyed with the idea of pooling their dollar reserves to backstop banks in case the Fed were to withdraw its emergency swap lines. But any such cooperation, as well as being politically difficult, was unlikely to suffice given the multi-trillion-dollar size of the international market for loans denominated in the U.S. currency. In a bid to avert a dollar squeeze, the Federal Reserve has kept swap lines with other central banks since the last financial crisis. These facilities essentially let commercial lenders outside the U.S. borrow dollars from their own central banks when they cannot source them on the market. Lane noted that euro zone banks had built up their cash buffers in U.S. dollars, with their liquidity coverage ratio, or LCR, rising from some 85% at the end of 2021 to well above 110% now. A ratio above 100% indicates that a bank has enough high-quality, easily sellable assets to cover total net cash outflows over a 30-day stress period. This allowed them to withstand pressure during the market gyrations in April, for example, when U.S. Treasuries sold off at the same time as the dollar weakening, depriving banks of their usual hedge against any losses. "Since the euro area banking system has made progress in increasing their USD LCRs in recent years...it did not experience sizeable liquidity strains even at the height of the exchange rate volatility in early April, though the episode may have altered the algebra of liquidity management for the remainder of the year," Lane said. https://www.reuters.com/business/finance/ecbs-lane-warns-dollar-risk-banks-2025-10-21/

2025-10-21 07:44

OSLO, Oct 21 (Reuters) - Norway's oil production exceeded an official forecast by 5.4% in September while gas lagged by 1.9%, the Norwegian Offshore Directorate (NOD) said on Tuesday. Norway is Europe's largest supplier of natural gas and a major producer of oil, but output varies from month to month depending on maintenance needs and other stoppages at close to 100 offshore fields. Sign up here. Overall oil, condensate, natural gas liquids and gas output stood at 0.599 million standard cubic metres per day, equivalent to 3.77 million barrels of oil equivalent, an increase of 15.9% year-on-year. Natural gas production in September rose to 282.1 million cubic metres (mcm) per day from 240.8 mcm a year earlier, but lagged a forecast of 287.6 mcm by 1.9%, the regulator said on its website. Crude oil output rose to 1.82 million barrels per day (bpd) in September from 1.60 million bpd in the same month last year, and came in above a forecast of 1.73 million bpd, NOD's preliminary data showed. https://www.reuters.com/business/energy/norway-oil-output-beats-forecast-september-while-gas-lags-2025-10-21/