2024-04-05 11:59

April 5 (Reuters) - Germany's Deutsche Bahn (DBN.UL) is drawing up a list of cost-cutting measures to mitigate billions of euros in losses and ballooning debt, two company sources told Reuters on Friday. One of the sources referred to the measures as an "emergency brake" for the state-owned company, which has faced a series of strikes, wage increases and pressure to modernize its outdated infrastructure. According to the sources, the measures stipulate that all new hires and expenditures, including business travel, be approved by management going forward. "A hiring freeze and an almost group-wide spending freeze are being prepared," a company source told Reuters. The measures would affect all of Deutsche Bahn's business areas except for its logistics subsidiary Schenker, which is currently up for sale, the sources said. A Deutsche Bahn spokesperson declined to comment on the information. A board decision regarding the changes could be taken as early as Tuesday, the sources said. Net losses at Deutsche Bahn widened to nearly 2.4 billion euros ($2.60 billion) in 2023, while its net financial debt ballooned to 34 billion euros. ($1 = 0.9228 euros) The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/world/europe/deutsche-bahn-prepares-emergency-cost-cutting-measures-sources-say-2024-04-05/

2024-04-05 11:53

MUMBAI, April 5 (Reuters) - India's foreign exchange reserves (INFXR=ECI) , opens new tab rose for a sixth straight week to hit a lifetime high of $645.58 billion as of Mar. 29, data from the central bank showed on Friday. The reserves rose by $2.95 billion in the reporting week, after having risen by a total of $26.5 billion in the previous five weeks. The Reserve Bank of India (RBI) intervenes in the foreign exchange market to curb excess volatility in the rupee. Changes in foreign currency assets are caused by the RBI's intervention as well as the appreciation or depreciation of foreign assets held in the reserves. Foreign exchange reserves also include India's reserve tranche position in the International Monetary Fund. Despite India's strong growth and inflows into equity and debt markets, the central bank has been absorbing inflows to build reserves. "It is our prime focus to build a strong umbrella, a strong buffer in the form of a substantial quantum of forex reserves which will help us when the cycle turns or when it rains heavily," RBI Governor Shaktikanta Das said on Friday. In the week that the foreign exchange data pertains, the rupee had hit a record low of 83.45 against the dollar, but clocked minor weekly gains. The domestic currency settled at 83.2950 on Friday, up 0.1% this week. FOREIGN EXCHANGE RESERVES (in million U.S. dollars) --------------------------------------------------------- March 29 March 22 2024 2024 --------------------------------------------------------- Foreign currency assets 570,618 568,264 Gold 52,160 51,487 SDRs 18,145 18,219 Reserve Tranche Position 4,660 4,662 ---------------------------------------------------------- Total 645,583 642,631 ---------------------------------------------------------- Source text: (https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx , opens new tab) The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/world/india/indias-foreign-exchange-reserves-rise-sixth-week-record-high-2024-04-05/

2024-04-05 11:41

LEUVEN, Belgium, April 5 (Reuters) - The United States and the European Union committed to extend by three years their cooperation on identifying disruptions in the semiconductor sector, with a particular emphasis on mainstream "legacy" chips from China. The two sides concluded a two-day session of their Trade and Technology Council on Friday with a l2-page joint statement on the meeting's outcomes. It said the two partners would share market intelligence about "non-market" policies and practices, which they argue prevail in China, and consult on planned action to address distortions on the global supply chain. European Commission Vice President Margrethe Vestager, who oversees EU policy on technology, said the EU and U.S. were taking "the next steps" regarding legacy semiconductors. U.S. Commerce Secretary Gina Raimondo told a news conference that China was producing some 60% of legacy chips, found in cars, household appliances and medical devices, and would continue to do so in the coming years. "And we know there's a massive subsidisation of that industry on behalf of the Chinese government which could lead to huge market distortion. And so that's why we're focused on it," she said. The Commerce Department has already launched a survey to assess market distortion, she said, adding that the EU would do a similar exercise soon, with the two set to share their results. The two partners have also committed to join forces in research to find alternatives to per- and polyfluoroalkyl substances (PFAS) in chips. The "forever chemicals" do not readily break down and studies show they can harm human health. The Technology Roundup newsletter brings the latest news and trends straight to your inbox. Sign up here. https://www.reuters.com/technology/us-eu-eye-chinese-legacy-chips-renewed-semiconductor-accord-2024-04-05/

2024-04-05 11:26

GUANGZHOU, China, April 5 (Reuters) - U.S. Treasury Secretary Janet Yellen said on Friday that concerns are growing over the global economic fallout from China's excess manufacturing capacity, making the issue the main focus of four days of economic meetings with Chinese officials. China is too large to export its way to rapid growth and would benefit by reducing excess industrial capacity which is pressuring other economies, Yellen said in remarks to an audience of about 40 representatives of the American Chamber of Commerce in Guangzhou. "Overcapacity isn't a new problem, but it has intensified, and we're seeing emerging risks in new sectors," Yellen said in China's southern export hub of Guangzhou, where she met with Vice Premier He Lifeng and Guangdong Province Governor Wang Weizhong. Yellen and other Biden administration officials are growing increasingly concerned about China's overproduction of electric vehicles, solar panels, semiconductors and other goods that are flooding into global markets in the face of a demand slump in China's domestic market. She said that this is not healthy for China and is hurting producers in other countries, urging Beijing to shift away from state-driven investment and return to the market-oriented reforms that fueled growth in past decades. FINANCIAL COOPERATION While Sino-U.S. tensions over a range of issues have been escalating, Yellen highlighted areas of mutual interest in a dialogue launched during her first visit to China last July, including fighting climate change and illicit finance. She said a financial working group representing both sides had been working on steps to contain the financial risks from a potential bank failure in either economy. "We've held technical exchanges between our sides, including an exercise on how we would jointly deal with the failure of a large bank in the U.S. or in China," Yellen said, without providing additional detail on the findings of that review. The U.S. and China announced the financial working group in September as a venue to discuss policy and exchange information. In January, the group met and discussed their respective resolution frameworks for large global banks, according to the Treasury Department. China has set an ambitious economic growth target of 5% for 2024, fueled in part by more investment in new high-technology sectors as the economy struggles to overcome a property crisis and weak consumer demand. But many economists say China's growth model needs a major overhaul to boost domestic consumption and reduce its traditional heavy reliance on investment. Yellen started her meeting on Friday with He by saying the two countries needed to communicate closely on difficult issues such as overcapacity and national security-related economic restrictions. "It is what the world and our citizens expect from us," she said. TARIFF GROUNDWORK Some trade experts see the increased U.S. criticism of China's production-focused, subsidy- and debt-driven economic model as an initial step towards raising U.S. tariffs on Chinese EVs and clean energy goods to protect U.S. industry. Yellen has shied away from raising any threats of new trade barriers, but said during her journey to Guangzhou she will not rule out more actions to protect a fledgling American supply chain for EVs, batteries, solar power and other goods from cut-price Chinese imports. The Treasury is not expecting a major shift in Chinese policy as a result of Yellen's visit, but U.S. officials believe it was important to explain the risks that overinvestment in some sectors - and relatively weak consumer demand in China - present to both China's economy and its trading partners. Yellen said on Friday that part of her aim on the trip was to cement a U.S.-China relationship that could "withstand shocks and challenging circumstances." In addition to factory overcapacity, Yellen also said she would raise concerns about a deteriorating business climate in China for foreign companies, citing an AmCham survey that found one third of American firms in China reported unfair treatment compared to local competitors. These include "imposing barriers to access for foreign firms and taking coercive action against American companies," she said, adding that ending such practices would benefit China. CHINA STATE MEDIA PUSHES BACK Chinese state media have pushed back against Yellen's excess capacity message, saying it was an example of a double standard. "While it is just basic economics that surplus products naturally seek out markets elsewhere once domestic demand is met, and Western nations have been doing that for centuries, when it comes to China, it becomes an 'overcapacity problem' threatening the world," the China Daily , opens new tab said. Yellen's meetings, which continue in Beijing on Saturday through Monday, come just after U.S. Commerce Department and Chinese Commerce Ministry officials met in Washington on Thursday. The top U.S. official in those talks, Commerce Undersecretary Marisa Lago, also raised "strong concerns regarding growing overcapacity in a range of Chinese industrial sectors," the department said in a statement. China's Vice Minister of Commerce Wang Shouwen raised concerns about U.S. tariffs on Chinese imports, sanctions and what he called the unfair treatment of Chinese companies due to national restrictions by the United States. "The economic and trade relations between China and the United States should be a stabilising force," Wang said, according to a statement from the commerce ministry. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/business/yellen-launches-contentious-meetings-chinese-excess-production-threat-2024-04-05/

2024-04-05 11:00

MUMBAI, April 5 (Reuters) - India has allowed limited exports of essential commodities, including sugar, wheat, rice, and onions, to the Maldives, the government said on Friday, even as ties between Male and New Delhi remained tense amid rising Chinese influence. India, a leading exporter of rice, sugar and onions, has imposed various curbs on exports of these food commodities to keep a lid on local prices ahead of general election. Shipments of these commodities in the 2024/25 finiancial year which started on April 1 to Maldives "will be exempted from any existing or future restriction/prohibition on export," the government said in a notification. The South Asian country has allowed exports of 124,218 metric tons of rice, 109,162 tons of wheat flour, 64,494 tons of sugar, 21,513 metric tons of potatoes, 35,749 tons of onions, and 427.5 million eggs to the Maldives. India has also allowed exports of 1 million tons each of stone aggregate and river sand. The Maldives, which has traditionally had close ties to India, is pivoting towards Beijing since new President Mohamed Muizzu was elected in October on a promise to end the country's pro-India stance. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. https://www.reuters.com/markets/commodities/india-allows-exports-essential-goods-maldives-despite-strained-ties-2024-04-05/

2024-04-05 10:19

MUMBAI, April 5 (Reuters) - The Indian rupee rose on Friday, bolstered by dollar sales from foreign and state-run banks and after the Indian central bank kept rates unchanged for a seventh consecutive meeting. The rupee closed at 83.2950 against the U.S dollar, up nearly 0.2% compared with its close of 83.4375 in the previous session. The currency logged a gain of 0.1% week-on-week, rebounding from a record low of 83.4550 hit on Thursday. Dollar sales picked up after the rupee managed to hold above 83.45 despite a raft of weak global cues, a FX trader at a foreign bank said. Brent crude oil prices rising above $90 per barrel for the first time since October and hawkish comments from Federal Reserve policymakers weighed early in the session. But foreign and state-run banks' dollar sales after the Reserve Bank of India's (RBI) policy decision helped lift the rupee, traders said. Stop losses were hit after the currency rose above 83.35, which led to traders exiting long dollar positions, the foreign bank trader said. Five out of six members of India's rate-setting committee voted in favour of a pause and for holding the monetary stance at 'withdrawal of accommodation'. India's robust growth prospects provide the central bank the space to remain focused on inflation, RBI Governor Shaktikanta Das said. Investors now await the U.S. non-farm payrolls report due later on Friday. The U.S. likely added 200,000 jobs in March, according to a Reuters poll of economists. The dollar index was little changed at 104.2 while Asian currencies were mixed. The rupee is likely to trade with a modest appreciation bias over the next few sessions, Arnob Biswas, head of foreign exchange research at SMC Global Securities said. Keep up with the latest medical breakthroughs and healthcare trends with the Reuters Health Rounds newsletter. Sign up here. https://www.reuters.com/markets/currencies/rupee-ends-higher-foreign-state-run-banks-dollar-sales-rises-week-2024-04-05/