2025-10-08 11:12
ATACAMA, Chile, Oct 8 (Reuters) - In Chile's arid Atacama, the driest desert in the world, scientists are studying a small, resilient flower that could hold genetic clues to help crops withstand worsening drought conditions driven by climate change. The Cistanthe longiscapa, known locally as "pata de guanaco," blooms during rare rainfall events in the Atacama desert, creating a mosaic of colors known as the flowering desert phenomenon. Sign up here. Now a team at Chile's Andres Bello University is conducting genetic sequencing experiments to uncover the traits that allow the fuchsia-colored flower to survive water scarcity and extreme temperature swings in one of the planet's harshest environments. Their goal is to transfer drought-tolerant characteristics to other crops. "With climate change, droughts are becoming a serious problem for agriculture, for the world and our country," said Ariel Orellana, director of the university's Plant Biotechnology Center. "We need plants that are capable of tolerating that drought." Chile faces mounting water challenges and the World Resources Institute ranks it among the most water-stressed countries in the world. Studies warn of extreme drought conditions by 2050 across Chile's fertile central valley - key for agricultural exports including wine, fruit and livestock. What makes pata de guanaco unique, said Orellana, is its ability to switch between different types of photosynthesis, making it a model plant for extreme environments. Under stress from drought, intense sunlight or salinity, the plant activates a water-saving method known as CAM photosynthesis. When conditions improve, it reverts to the more common C3 photosynthesis. "This flexibility makes it a great model for studying how genes control these changes," Orellana added. Cesar Pizarro Gacitua, head of biodiversity conservation at the Atacama region of Chile's CONAF forestry agency, says more joint research is needed to understand the plant's mysteries. "How does it produce enough food, perform photosynthesis, to survive extreme conditions?" Pizarro said. https://www.reuters.com/sustainability/cop/chiles-atacama-desert-flower-could-hold-key-drought-tolerant-crops-2025-10-08/
2025-10-08 11:05
ABUJA, Oct 8 (Reuters) - Nigeria has made significant progress in stabilizing its economy through recent policy reforms but needs to do more to improve living standards and tackle soaring food prices, the World Bank said in a report released on Wednesday. The bank's report highlighted progress in economic growth, revenue mobilization, and external balances after Nigeria removed its fuel subsidy, devalued the naira currency and reformed taxes. However, it warned that high food inflation and widespread poverty continued to weigh heavily on households. Sign up here. Africa's most populous economy expanded by 3.9% year-on-year in the first half of 2025, up from 3.5% in the same period last year, driven by growth in services, non-oil sectors, and a rebound in oil production and agriculture. Foreign reserves rose above $42 billion, while the current account surplus widened to 6.1% of GDP, supported by stronger non-oil exports and reduced oil imports. Despite lower oil prices, Nigeria's fiscal deficit is projected at 2.6% of GDP in 2025, broadly unchanged from 2024. Public debt is expected to decline for the first time in over a decade, falling from 42.9% to 39.8% of GDP. "The Nigerian government has taken bold steps to stabilize the economy, and these efforts are beginning to yield results," said Mathew Verghis, World Bank Country Director for Nigeria. "The true measure of success will be how these reforms improve the daily lives of Nigerians — especially the poor and vulnerable." The cost of a basic food basket has increased fivefold since 2019, disproportionately affecting poor households that spend up to 70% of their income on food. The World Bank recommended urgent action in three areas: removing trade barriers and addressing supply chain bottlenecks to curb food inflation; improving fiscal transparency and aligning public spending with development goals; and expanding social protection through regular, domestically funded cash transfers and crisis-responsive safety nets. Looking ahead, the World Bank projects Nigeria's economy will grow by 4.2% in 2025, rising to 4.4% by 2027, driven by services and supported by agriculture and non-oil industries. Inflation is expected to ease gradually but remain elevated. "Food inflation is the biggest tax on the poor," said Samer Matta, the World Bank's Senior Economist for Nigeria. https://www.reuters.com/world/africa/nigerias-economy-growing-high-food-prices-burden-world-bank-says-2025-10-08/
2025-10-08 10:51
LONDON, Oct 8 (Reuters) - The adoption of stablecoins could generate an additional $1.4 trillion in demand for U.S. dollars by 2027, if enough overseas investors want to own these digital assets, analysts at JPMorgan said in a note on Tuesday. WHY IT'S IMPORTANT The potential increase in dollar demand underlines the importance of the burgeoning stablecoin market in traditional finance. JPMorgan believes that rather than accelerating de-dollarisation, the growth in stablecoin adoption has the potential to reinforce the dollar’s role in global finance. Sign up here. BY THE NUMBERS The stablecoin market, which JPM said is currently worth $260 billion, could grow to as much as $2 trillion in their high-end scenario. Approximately 99% of stablecoins, such as Tether, are pegged 1:1 to the dollar, meaning if foreign households or corporations convert holdings of their local currency into stablecoins, it would represent new U.S. dollar demand. CONTEXT Stablecoins are digital tokens that have a stable value against a regular currency, mainly the dollar, and are backed by reserves like the currency itself or other assets, such as Treasuries and T-bills. Euro zone finance ministers are due to discuss on Thursday how they can support the development of euro-denominated stablecoins, a euro zone official said. KEY QUOTES "Whether such a high-end scenario growth trajectory will actually play out remains to be seen, but if it does, stablecoin-related dollar inflows could become cumulatively significant," JPM said. "Given that ~99% of the total stablecoin supply is pegged 1:1 to the dollar, stablecoin market growth necessarily implies some demand for the dollar." https://www.reuters.com/business/global-markets-stablecoins-jpm-2025-10-08/
2025-10-08 10:51
LONDON, Oct 8 (Reuters) - What matters in U.S. and global markets today By Mike Dolan , opens new tab, Editor-At-Large, Finance and Markets Sign up here. Usually alternatives, stocks and gold are rising together as investors seek to ride an inflationary expansion by taking on AI-driven corporate risk with gold added to portfolios as a hedge against loosening monetary and fiscal policy worldwide. Monday's brief stumble on Wall Street looks to have been just that and both U.S. futures and European stocks rallied on Wednesday, with the STOXX600 and FTSE100 hitting new records. French markets staged a recovery amid some sign of progress in the government's impasse there and gold surged again after topping $4,000 per ounce for the first time on Tuesday. If rising stocks and gold seemed like an odd couple, they were also joined by the peculiar sight this year of a rising dollar. The dollar DXY index hit a near two-month high as Japan's yen plunged again close to 153 per dollar on this week's leadership change in Tokyo, dropping to its weakest since February. With no sign of movement on re-opening government in Washington, the focus remains on Federal Reserve signals - with minutes from last month's rate-cutting meeting and a long list of speakers on Wednesday's diary. On Tuesday, new Fed board member Stephen Miran, who favors big rate cuts due to his view on a much lower neutral rate than consensus thinking, said that calm bond markets supported his take. Futures are still pricing in a 95% chance of another quarter-point rate cut later this month, with the longer the government shutdown lasts the longer the drag on the economy at the margin. And, adding some trepidation about runaway stocks, the Bank of England warned on Wednesday about the risk of a sharp reversal if investor moods soured on doubts about AI or Fed independence. * In keeping with easy policy settings around the world, the Reserve Bank of New Zealand surprised with a 50‑basis‑point rate cut and signaled more easing may follow, knocking the New Zealand dollar down nearly 1% and dragging the Aussie lower in sympathy. Markets had priced only a slim chance of a half‑point move and policymakers framed the step as getting "ahead of the curve" to arrest a frail economy. * Despite the bounce in French stocks and bonds, the euro sagged to a one‑month low. But caretaker French Prime Minister Sebastien Lecornu struck a cautiously optimistic tone on Wednesday, saying a deal could potentially be reached on the country's budget by year-end, making the possibility of a snap election less likely. * Spot bullion burst above $4,000 per ounce for the first time, now up more than 50% year‑to‑date as investors hedge policy and growth uncertainty. Beyond its role as an inflation hedge and geopolitical safety play, the rally has been underpinned by central‑bank accumulation, renewed ETF inflows and this year's softer dollar, with some strategists casting gold as insurance against an AI-fuelled bubble and debt‑inflation endgame. In today's column, I take a look at new projections that show Europe's ageing bill will rise far less than in the U.S. or China over the coming decades. Today's Market Minute * A race by crypto companies to sell tokens pegged to stocks is raising alarm bells among traditional financial firms and regulatory experts who warn that the fast-growing novel products pose risks to investors and market stability. * U.S. lawmakers are calling for broader bans on chipmaking equipment to China after a bipartisan investigation found that Chinese chipmakers had purchased $38 billion of sophisticated gear last year. * In better news for Britain's embattled finance minister Rachel Reeves, the UK statistics office said government borrowing in the previous and current fiscal years was a combined 3 billion pounds ($4 billion), lower than previously reported after a value added tax receipt data error was found. There were also rising hopes that tweaks to self-imposed fiscal rules will prevent excessive tax rises in next month's budget. * The Federal Reserve says its interest rate cuts are aimed at softening the impact of a looming labor market rupture. Unfortunately, writes ROI markets columnist Jamie McGeever, cheaper money is unlikely to achieve that goal, but what it almost certainly will do is fuel the "everything" rally in financial assets. * Russia's heavy bombardment of Ukraine's natural gas infrastructure ahead of winter is set to have a knock-on impact on Europe's energy market as Ukraine draws more fuel from its western neighbours. Read the latest from ROI energy columnist Ron Bousso. Chart of the day With investors racing to gold as an inflation hedge and the Federal Reserve resuming interest rate cuts, the New York Fed's monthly household survey found that public inflation expectations were rising again last month, with their view of inflation a year from now rising to 3.4% from August's 3.2% and the three-year-stuck at 3%. September's five-year-ahead expected inflation reading also stood at 3% from the prior month’s 2.9%. All measures are far above the Fed's inflation target of 2% - as are actual core inflation rates - raising questions as to just why the central bank is cutting rates again. Today's events to watch * Federal Open Market Committee issues minutes from September meeting * Dallas Federal Reserve President Lorie Logan, Chicago Fed President Austan Goolsbee, St. Louis Fed chief Alberto Musalem, Minneapolis Fed boss Neel Kashkari and Fed Board Governor Michael Barr all speak; European Central Bank President Christine Lagarde; Bank of England chief economist Huw Pill speaks * International Monetary Fund managing director Kristalina Georgieva previews next week's IMF-World Bank annual meetings * U.S. Treasury sells $39 billion of 10-year notes Want to receive the Morning Bid in your inbox every weekday morning? Sign up for the newsletter here. You can find ROI on the Reuters website , opens new tab, and you can follow us on LinkedIn , opens new tab and X. , opens new tab Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles , opens new tab, is committed to integrity, independence, and freedom from bias. https://www.reuters.com/business/finance/global-markets-view-usa-2025-10-08/
2025-10-08 10:46
MUMBAI, Oct 8 (Reuters) - The regulator of India's Gujarat International Finance Tech (GIFT) City is in discussions with the country's central bank to allow domestic lenders to instantly settle forex transactions through the tax-neutral finance hub, the regulatory body's chairman said. The move would make forex transactions quicker and cheaper and ease settlement processes for foreign investors investing in India through GIFT City, which Prime Minister Narendra Modi is pitching as a finance hub to rival centres like Dubai and Singapore. Sign up here. On Tuesday, GIFT City launched a real-time foreign currency settlement system, with Standard Chartered's (STAN.L) , opens new tab India unit initially selected to handle U.S. dollar clearances. This facility is only for bank branches in GIFT City. The launch of the real-time system has speeded up settlement timelines to 30 seconds from nearly 24 hours earlier, K. Rajaraman, chairman of the International Financial Services Centres Authority, told Reuters in an interview late on Tuesday. The regulators are now in discussions to allow Indian banks to settle their forex transactions in real-time, which would give investors a wider suite of options and open up a new line of business for lenders. "In the next six-to-eight months, we plan to allow banks in India to settle their dollar transaction through this clearing system with due permissions from Reserve Bank of India," Rajaraman said. BOOSTING DERIVATIVE TRADES AT GIFT CITY Earlier this month, the National Stock Exchange of India announced the introduction of daily expiry contracts for GIFT Nifty, a dollar-denominated derivative of the Nifty 50 index traded at the finance hub. The move was in contrast to the tighter regulatory framework for domestic derivatives. India's markets regulator has recently tightened rules for equity derivatives, citing data that shows nearly 90% of retail investors incur losses. Rajaraman said risk management measures would be implemented to prevent any spillover from increased derivative activity in GIFT Nifty to the domestic markets. "This product is dollar-denominated and meant for institutional investors," he said. "Problem in Indian derivatives is due to resident retail investors trading in those instruments, a concern missing in GIFT City," Rajaraman said. https://www.reuters.com/sustainability/boards-policy-regulation/indias-gift-city-rbi-talks-enable-real-time-fx-settlement-by-domestic-banks-says-2025-10-08/
2025-10-08 09:53
Oct 8 (Reuters) - Sterling slipped against a strong dollar but rose versus the euro and the yen on Wednesday, while concerns over the British economy and next month's budget kept investors on edge. The common currency and the yen were on track for a third straight day of losses against the dollar on Wednesday, pressured by political turmoil in France and expectations of increased fiscal spending in Japan. Sign up here. On the British economic front, analysts expect modest growth for the rest of the year, while inflation is seen rising to 4% — double the Bank of England’s target — after data last week showed the economy lost momentum following a strong start to 2025. The British currency showed a quite muted reaction to recent data, but investors feared that potential tax hikes to meet fiscal rules in next month's budget could have a negative impact on the pound. Sterling was down 0.1% against the dollar at $1.3409. "Sterling will be a barometer of Rachel Reeves's ability to balance the need for fiscal prudence, economic growth and honouring political pledges," said Robert Farago, head of strategic asset allocation at Hargreaves Lansdown. "Today, the U.S. dollar is overvalued against sterling, the euro and the yen. But this is a minor ingredient in the recent weakness of the dollar, which has largely been driven by the significant shifts in U.S. policies," he added. Against the euro the pound rose 0.20% to 86.61 pence per euro, its highest level since September 16. It hit a fresh 15-month high versus the yen at 204.97, and was last up 0.50% at 204.85. BoE officials Huw Pill and Catherine Mann are speaking this week, with Pill due later on Wednesday and Mann on Thursday. Both backed the decision to hold rates at the September meeting. Global financial markets could tumble if investors' mood sours on the prospects for artificial intelligence or the independence of the U.S. Federal Reserve, the BoE warned on Wednesday. https://www.reuters.com/world/uk/sterling-rises-versus-euro-reaches-fresh-15-month-high-against-yen-2025-10-08/
