2025-10-04 12:54

SPD draft for new industrial policy in the steel sector Industry loss due to market distortion should be avoided SPD wants fewer steel imports, condition for steel scrap exports BERLIN, Oct 4 (Reuters) - Germany's Social Democrats, junior partners in Chancellor Friedrich Merz's coalition, will push for a more protectionist stance on Europe's steel industry, urging the EU to adopt a "buy European" strategy, a document seen by Reuters on Saturday showed. The SPD, headed by Finance Minister Lars Klingbeil, is due to adopt the proposals next week. They call for the European Commission to adopt a "robust trade protection" strategy to defend against subsidised foreign competitors. Sign up here. "At its core, what is needed is a tariff quota system that effectively limits excessive import volumes while keeping the market controlled and open," the SPD said. The proposals are likely to feed into a steel summit called by the conservative chancellor for this month for steel producers, German states and trade unions to thrash out proposals for supporting the industry. The extent to which the SPD's proposals will be adopted though remains unclear. Most German political parties have previously been against protectionism as the country has for the past two decades been one of the world's greatest beneficiaries of low trade barriers. However, German manufacturers and regulators are now increasingly worried about the distorting impact of competition from China and elsewhere and of U.S. tariffs. "We can't allow domestic value creation to depart just because the international rules are no longer working," the SPD said in the document. "This is not about protectionism, but about enforcing fair competition rules and European strategic interests," it said. The SPD also called for tighter controls on the import of Russian steel, including measures to prevent it entering the European market via Turkey. The SPD in particular has suffered electorally from de-industrialization in its formerly industrial heartlands, seeing the far-right eat into its vote share. https://www.reuters.com/world/china/german-coalition-partner-seeks-protections-european-steel-document-shows-2025-10-04/

2025-10-04 10:54

Japan yield curve expected to steepen on Takaichi victory Tokyo shares likely to rise, yen to fall Takaichi's mandate seen influencing BOJ's rate-hike policy TOKYO, Oct 4 (Reuters) - Japanese shares are expected to keep setting records even as the nation's currency and bonds sputter after fiscal dove Sanae Takaichi was elected on Saturday to lead the ruling party and likely become prime minister. Takaichi, 64, was considered to have the most expansionist fiscal and monetary agenda among five candidates in the Liberal Democratic Party race to replace hawkish Prime Minister Shigeru Ishiba. Sign up here. In the lead-up to the LDP race, a "Takaichi trade" emerged - long on stocks and bearish on Japanese government bonds, particularly longer maturities - positioning for a win by Takaichi, a devotee of the "Abenomics" stimulus policies of the late Shinzo Abe. 'POSITIVE SURPRISE' FOR SHARES, BONDS ON EDGE Japan's benchmark Nikkei (.N225) , opens new tab logged a record closing high of 45,769.50 on Friday, topping the record set the week before, as investors bet whoever succeeded Ishiba would be more dovish. Short positions on the gauge have been building up recently and may now be unwound, said Resona Holdings strategist Hiroki Takei. "This could be considered a positive surprise for stock prices," Takei said. "If short-covering is triggered, the rally could gain momentum, potentially pushing the index toward the 47,000 level." The Japanese government bond market has been on edge since late May due to waning demand among traditional buyers, decreased support from the central bank and concerns about swelling debt. The sector was dealt another blow in July, when Ishiba's coalition lost its majority in the upper house of parliament - having lost its lower house majority last year - as outsider parties campaigning on tax cuts and increased spending gained seats. The 30-year JGB yield surged to a record 3.285% on September 8, the first trading day after Ishiba announced he was stepping down. In recent weeks, the Nikkei's momentum slowed and longer-term JGBs rallied as markets gave the edge in the LDP race to farm minister Shinjiro Koizumi and Takaichi appeared to moderate her stance, leaving sales tax cuts out of her platform and staying mostly mum on the Bank of Japan. "She seemed to have toned down her rhetoric recently but ultimately the feeling is still that she will push for looser fiscal and monetary policy," said James Athey, a fixed income manager at British investment group Marlborough. "As such, there is likely to be a negative reaction in long-end JGBs and the yen." Japan's currency closed at 147.44 per dollar on Friday, staging a 1.4% gain on the week that was the sharpest since mid-May. After her LDP victory, Takaichi told a press conference the government and central bank must work closely to ensure Japan's economy achieves demand-driven inflation backed by rising wages and corporate profits. Prices for shorter-dated JGBs, those most sensitive to central bank rates, have been on a declining trend, pushing their yields higher as evidence mounted that Japan's economy was sound enough for the BOJ to resume tightening policy. BOJ Governor Kazuo Ueda has put the central bank on a long-term path to raise interest rates and shrink its balance sheet after more than a decade of massive stimulus that was a key part of former Prime Minister Abe's economic platform. Yields on two-, five-, and 10-year JGBs have all reached levels not seen since the financial crisis in 2008 on bets the BOJ could raise rates as early as this month's meeting. Takaichi's wide support among rank-and-file LDP members will lend her cabinet a strong mandate and a heavy hand in influencing monetary policy by the BOJ, said Tohru Sasaki, chief strategist at Fukuoka Financial Group and a former BOJ official. "Takaichi will make it difficult for the BOJ to raise rates, so yields will go lower," Sasaki said. "But at the same time, she's likely to expand spending, which is negative for bonds. A steepening of the yield curve is a possible reaction." https://www.reuters.com/world/asia-pacific/japans-nikkei-seen-hitting-new-highs-yen-bonds-sputter-takaichi-victory-2025-10-04/

2025-10-04 07:49

AMSTERDAM, Oct 4 (Reuters) - At least 80 incoming and more than 70 outgoing flights were canceled at the Netherlands' Schiphol Airport on Saturday as Storm Amy moved across the country, the airport said in a statement on its website. The Royal Netherlands Meteorological Institute (KNMI) issued a warning for Storm Amy for wind gusts reaching 90 km/h along the Dutch coast and up to 75 km/h in inland areas. Sign up here. Several other flights at Schiphol, one of Europe's busiest airports, experienced delays due to the severe weather. The majority of the canceled flights were operated by KLM, AirFrance-KLM's (AIRF.PA) , opens new tab Dutch arm, which also warned on its website that further delays or cancellations could affect Sunday flights as the storm continues. https://www.reuters.com/business/environment/dozens-flights-canceled-netherlands-schiphol-airport-due-storm-2025-10-04/

2025-10-04 06:43

JAKARTA, Oct 4 (Reuters) - The U.S. Food and Drug Administration (FDA) announced new import certification , opens new tab requirements for shrimp and spices from Indonesia after cases of radioactive contamination were detected earlier. In a posting on its website on Saturday, Indonesian time, the agency said that it will implement the import certification requirements from certain regions of Indonesia starting on October 31, 2025. Sign up here. The certification requires firms on the red list with evidence of Caesium 137 contamination to have an accredited third party to verify the control of the radioactive element. Once the firms are taken off the red list, they will still be subject to restrictions and will need to provide information indicated under the yellow list for each shipment. Firms on the yellow list covering certain foods with Caesium 137 contamination risks are required to have shipment certification from an entity designated by the FDA, which must be an agency or representative of the Indonesian government. FDA's website says Caesium 137 is a radionuclide present in the environment mainly as the result of nuclear testing or accidents such as Chernobyl and Fukushima. Indonesia does not possess nuclear weapons or nuclear power plants. The FDA in August issued an advisory to consumers, distributors and sellers in the U.S. not to eat, sell or serve frozen shrimp processed by local seafood company PT Bahari Makmur Sejati, after their products were contaminated with Caesium 137. The shrimp was processed at an industrial estate near Jakarta that was later found to be contaminated with the radioactive element and Indonesia's nuclear agency is seeking to pinpoint the size of the area affected. Bara Hasibuan, a spokesperson for the investigation into the incident, told Reuters: "We just received the report few hours ago. Need time to figure what steps need to be taken." https://www.reuters.com/business/healthcare-pharmaceuticals/us-fda-slaps-new-requirements-indonesias-shrimp-spices-after-radioactive-2025-10-04/

2025-10-04 04:14

Typhoon Matmo expected to make landfall around noon Sunday Hainan, Guangdong, Yunnan provinces potentially affected Disruption comes during busy period for holiday travel HONG KONG, Oct 4 (Reuters) - Chinese authorities will cancel flights and ferries in Hainan on Saturday night before Typhoon Matmo hits the southern province, likely disrupting a peak holiday travel period for the resort island. All flights to and from the provincial capital Haikou's international airport are expected to be cancelled from 11 p.m. (1500 GMT), the official Xinhua news agency reported, as Matmo could bring strong winds and heavy rain to southern China, including Guangdong and Yunnan provinces. Sign up here. The Maritime Safety Bureau in Sanya, Hainan's resort city, also said all tourist ships and ferries would be prohibited in its jurisdiction from 6 p.m. (1000 GMT). EXPECTED TO MAKE LANDFALL SUNDAY Matmo, which caused flooding in the Philippines this week, is expected to make landfall around noon on Sunday after approaching east of Hainan with an expected maximum wind force of 42-48 meters per second. Haikou planned to halt all schools, work and transport from Saturday afternoon to Sunday, Xinhua said, while Guangdong's port city Zhanjiang would do the same starting on Saturday. During the eight-day holiday that starts with China's National Day on October 1, people are expected to make around 2.36 billion trips, with the daily average forecast to be up 3.2% from the same period last year, Xinhua said on Wednesday. Haikou had planned nearly 150 cultural events and more than 10 sports competitions during the holiday period, while Sanya had planned 170 art and tourism activities, according to Hainan's official social media. State media CCTV, citing meteorological experts, asked the public to stay vigilant as Matmo will have a serious impact on tourism and transportation during a busy period for travel. The Hong Kong Observatory raised its tropical cyclone warning signal to Strong Wind Signal No. 3 at noon and said it would assess the need for higher signals later on Saturday. The financial hub has issued 12 tropical cyclone warning signals this year, the most since 1946, the observatory said on Friday. https://www.reuters.com/business/environment/china-cancel-some-flights-typhoon-matmo-nears-hainan-during-peak-holiday-travel-2025-10-04/

2025-10-03 23:42

Applied Materials flags $600 mln revenue hit in 2026 USA Rare Earth rises after report of talks with White House U.S. government shutdown goes on for 3rd day Indexes: Dow up 0.5%, S&P 500 up 0.01%, Nasdaq down 0.3% NEW YORK, Oct 3 (Reuters) - The S&P 500 eked out a record closing high in a volatile session Friday, with interest rate-cut expectations holding up as the U.S. government shutdown went on for a third day. The Dow also posted a record closing high, but the Nasdaq ended lower. Sign up here. The S&P 500 technology sector (.SPLRCT) , opens new tab eased, with shares of Applied Materials (AMAT.O) , opens new tab declining 2.7% after the chip-equipment maker late Thursday forecast a $600 million hit to fiscal 2026 revenue. Shares of Tesla (TSLA.O) , opens new tab were 1.4% lower, while utilities (.SPLRCU) , opens new tab rose 1.2% and led gains among S&P 500 sectors. The U.S. nonfarm payrolls report for September was due for release on Friday, but was not published due to the government closure. Investors were still able to digest a survey by the Institute for Supply Management, which showed the services employment index contracted for the fourth consecutive month. The news underscored the case for more interest rate cuts from the Federal Reserve. "It certainly feels like momentum is on the side of investors over the last few days," said Mona Mahajan, head of investment strategy at Edward Jones. It seems like "the market probability of a Fed rate cut has actually gone up since the shutdown began," she said. "Maybe that's because there's the potential impact on the economy or some weaker jobs data this week or this morning's ISM data... the expectation is we're still in this environment where the Fed is going to cut rates." The Fed cut rates in September for the first time since December amid recent labor market weakness. On Wednesday, a report showed a decline in private payrolls of 32,000 and a downwardly revised 3,000 decline in August. The Dow Jones Industrial Average (.DJI) , opens new tab rose 238.56 points, or 0.51%, to 46,758.28, the S&P 500 (.SPX) , opens new tab gained 0.44 points, or 0.01%, to 6,715.79 and the Nasdaq Composite (.IXIC) , opens new tab lost 63.54 points, or 0.28%, to 22,780.51. For the week, the Dow gained 1.1%, the S&P 500 also climbed 1.1% and the Nasdaq rose 1.3%. The market has historically shrugged off government shutdowns, but some strategists said that a longer shutdown could create more uncertainty for investors and for Fed policymakers. "The market generally looks past government shutdowns because they don't usually last long and they don't have a longer-term negative impact on the economy," said Anthony Saglimbene, chief market strategist at Ameriprise Financial in Troy, Michigan. "But the longer it goes... it means the data collection for really important reports could get delayed, or it could cloud some of the data that we will eventually get because the data collection wasn't happening over an extended period." Chicago Fed President Austan Goolsbee said he was hesitant to commit to a series of rate cuts with inflation still running above the target. According to the CME Group’s FedWatch Tool, traders see a 25-basis-point cut at the Fed's October meeting as almost certain and are pricing in an 84% probability of an additional cut in December. Shares of USA Rare Earth (USAR.O) , opens new tab rose 14.3% after CEO Barbara Humpton told CNBC the company was "in close communication" with the White House. Advancing issues outnumbered decliners by a 1.72-to-1 ratio on the NYSE. There were 686 new highs and 55 new lows on the NYSE. On the Nasdaq, 2,813 stocks rose and 1,880 fell as advancing issues outnumbered decliners by a 1.5-to-1 ratio. Volume on U.S. exchanges was 20.47 billion shares, compared with the 19.01 billion average for the full session over the last 20 trading days. https://www.reuters.com/world/africa/wall-street-futures-climb-final-session-volatile-week-2025-10-03/