2023-11-07 06:11

KUALA LUMPUR, Nov 7 (Reuters) - Malaysia has dropped a plan to draft a law aimed at stopping cross-border air pollution, its environment ministry said, citing difficulties in obtaining information for prosecutions. Almost every dry season, smoke from fires to clear land for palm oil and pulp and paper plantations in Indonesia blankets much of the region, leading to concern for public health as well as disruption to travel and tourism businesses. Environment groups say countries should adopt laws to go after the plantation companies in foreign countries suspected of being responsible for the pollution. Singapore passed such a law in 2014, aiming to hold those who cause haze both criminally and civilly liable, but Malaysia's environment ministry said in a written reply to parliament on Monday it would not go ahead with a law, citing difficulty in enforcing it. "To enable the enforcement of a transboundary haze pollution bill, clear evidence that transboundary haze originates from neighbouring countries must be supported by sufficient data such as location maps, coordinates, landowner information and companies operating in the location of fires," the ministry said. Such information was difficult to get hold of as it involved matters of confidentiality, security and national sovereignty, the ministry said. It said a diplomatic approach through negotiations was a better way to "collectively address" haze coming across borders. Indonesia, facing regular criticism from its neighbours and environmental groups for failing to end the fires, promises action but the pollution returns almost every dry season. Malaysia last month again called on Indonesia to stop the fires and it also called on the regional Association of Southeast Asian Nations (ASEAN), of which both it and Indonesia are members, to take up the issue. The environmental group Greenpeace has campaigned for transboundary haze laws saying they are important as a deterrent and can help determine which companies start fires. "Learning from Singapore's experience, no one has been fined or sued yet but this does not mean the transboundary haze act has been ineffective as some company was investigated under the act for links to forest fires," Heng Kiah Chun, regional campaign strategist for Greenpeace Southeast Asia, said in a statement. https://www.reuters.com/world/asia-pacific/malaysia-drops-plans-proposed-transboundary-haze-pollution-bill-2023-11-07/

2023-11-07 05:59

BEIJING, Nov 7 (Reuters) - China's imports unexpectedly grew in October while exports contracted at a quicker pace, in a mixed set of indicators that showed the world's second-largest economy facing persistent risks despite a recent improvement in domestic demand. The trade figures follow a run of mostly upbeat data that showed Beijing's support measures have helped bolster a tentative comeback, although a protracted property crisis and soft global demand continue to dog policymakers heading into 2024. Exports shrank 6.4% from a year earlier in October, customs data showed on Tuesday, faster than a 6.2% decline in September and worse than a 3.3% fall expected in a Reuters poll. Imports rose 3.0%, dashing forecasts for a 4.8% contraction and swinging from a 6.2% fall in September. Imports snapped 11 straight months of decline. "The figures are in contrast to market expectations. The bad exports data may hit market confidence as we had expected the supply chain of exports to recover," said Zhou Hao, economist at Guotai Junan International. "The significant improvement in imports may come from rising domestic demand, in particular a demand to replenish stocks." UNEVEN RECOVERY The yuan and Chinese stocks fell following the data, which reinforced markets' continued concerns about a fragile and uneven recovery. China's official purchasing managers' index last week showed both new export and import orders shrank for an eighth consecutive month in October, suggesting manufacturers are struggling for buyers overseas and ordering fewer components. "Since the global electronics market is on the rise, as affirmed by South Korea and Vietnam's export performance, China's poor export data points to weak demand in other categories, such as Christmas goods and garments," said Xu Tianchen, senior economist at the Economist Intelligence Unit. "The positive surprise on imports seems to reflect a firming up in domestic demand, rather than deriving from distortions caused by the one-time bulk buying of commodities," he added. China imported 13.52% more crude oil in October from a year earlier, a marginal increase on September's growth. Soybean imports jumped 25% from a year earlier, as the surge in cheap and plentiful shipments from Brazil continued. Trade with China's major peers continued to contract, with exports to Southeast Asia, its largest trade partner, down 15.1%. Trade with Australia was the exception amid improving relations between Beijing and Canberra, cooling diplomatic tensions that had arisen in recent years over a host of issues including national security and COVID. China has in recent months lowered trade barriers on Australian barley and wine exports. Exports to Australia rose 5.9% in October while imports from the resource-rich nation climbed 12.0%. China's higher imports narrowed the overall trade surplus to $56.53 billion in October from $77.71 billion in September, missing a forecast of $82.00 billion. Analysts say it is too early to tell whether recent policy support will be enough to shore up domestic demand, with property, unemployment and weak household and business confidence threatening to undermine a sustainable rebound. China's manufacturing activity unexpectedly contracted in October, data showed last week, complicating policymakers' efforts to revive growth. "Measures of foreign orders hint at a more significant drop in foreign demand than what has so far been observed in the customs data," said Julian Evans-Pritchard, head of China Economics at Capital Economics. "We expect most advanced economies to experience either mild recessions or weak GDP growth in the near-term, which will weigh on their demand for foreign goods." https://www.reuters.com/world/china/chinas-imports-unexpectedly-grow-oct-exports-extend-declines-2023-11-07/

2023-11-07 05:53

TOKYO, Nov 7 (Reuters) - Canada can provide critical minerals and energy to Japan, Foreign Minister Melanie Joly said to her Japanese counterpart ahead of bilateral talks in Tokyo on Tuesday. "We believe your security is our security, and we believe also that we can provide you support in terms of energy and critical minerals which is so important to the Japanese people," Joly said. The Group of Seven foreign ministers from wealthy industrialised countries including Canada, Japan, and the United States are set to meet for two days starting on Tuesday. https://www.reuters.com/world/canada-can-provide-critical-minerals-energy-japan-says-foreign-minister-2023-11-07/

2023-11-07 05:30

A look at the day ahead in European and global markets from Tom Westbrook: Bond markets have curbed a little of last week's enthusiasm about a prospective peak in global interest rates, but still cheered a rate hike in Australia that looks to be the last of the cycle. The Aussie dollar fell more than 0.8% and Australian government bonds rallied because the 25 basis point hike by the Reserve Bank of Australia came with a softening of language on whether further hikes would be needed. The ASX200 (.AXJO) lifted from mid-session lows. It was an otherwise quiet session in the absence of major updates that might have consequences for the interest rate outlook. Gravity dragged South Korean shares back to earth, with the Kospi (.KS11), which soared 5.7% on Monday after a short-selling ban was re-imposed, falling 3%. Three days of strong gains for the MSCI Asia ex-Japan index (.MIAPJ0000PUS) also came to an end. Data showed Chinese imports unexpectedly grew in October, a welcome signal on domestic consumption, but exports contracted at a quicker pace than expected, giving a mixed picture overall. Last week's chaos in Chinese money markets has subsided but it left behind a glimpse of financial pressures beneath the surface and the challenges around China's uneven recovery from the COVID-19 pandemic. Read Reuters' exclusive report on what happened here: Clashing priorities behind China's rare money market distress. British house prices, German industrial output and European producer prices are due later on Tuesday, as are earnings from UBS (UBSG.S). Overnight news from the U.S. included the latest humbling of WeWork (WE.N), which sought bankruptcy protection. It expects to continue in business, but the move represents an admission by majority owner SoftBank that the office-space firm cannot survive unless it renegotiates its pricey leases. Israeli Prime Minister Benjamin Netanyahu said his government would consider "tactical little pauses" in fighting to facilitate the entry of aid or the exit of hostages from the Gaza Strip, but again rejected calls for a ceasefire despite international pressure. Without a Fight won the 163rd Melbourne Cup by two lengths. Key developments that could influence markets on Tuesday: Earnings: UBS Economics: German industrial output, Euro zone producer prices, UK house prices, NY Fed household debt report Speakers: Fed's Waller, Logan and Schmid, ECB's de Guindos and McCaul, BoC's Kozicki https://www.reuters.com/markets/europe/global-markets-view-europe-2023-11-07/

2023-11-07 05:02

RBA raises cash rate 25bps to 4.35% Data to decide if a further hike is needed Markets wager this will be last rise in cycle SYDNEY, Nov 7 (Reuters) - Australia's central bank raised interest rates to a 12-year high on Tuesday, ending four months of steady policy, but left it open on whether even more tightening would be needed to bring inflation to heel. Wrapping up its November policy meeting, the Reserve Bank of Australia (RBA) raised its cash rate by 25 basis points to 4.35%, saying recent data suggested there was a risk inflation would remain higher for longer. "Whether further tightening of monetary policy is required to ensure that inflation returns to target in a reasonable timeframe will depend upon the data and the evolving assessment of risks," RBA Governor Michele Bullock said in a statement. This was a step back from the October decision which stated that some further tightening "may be required", and was taken by markets as a sign this might be the last hike of the cycle. As a result, the local dollar slid 0.8% to $0.6435 and bond futures rallied as investors lengthened the odds on a further rise in December. "It was a dovish hike...it's not pointing to any immediate need for a follow-up," said Rob Thompson, rates strategist at RBC Capital Markets. "You'd think they'd have opened the door to a bit more than this, but they are just trying to do as little as possible. The hurdle to hike is high." Markets had favoured a move this week given policy makers had warned they had little tolerance for inflation which had surprised on the high side in the third quarter. INFLATION PROVES STUBBORN This was Bullock's first rate change since taking over as governor in September, and could go some way to burnish her inflation-fighting credentials. Economic growth has already slowed to a two-year low of 2.1% and the RBA sees it approaching 1% in 2024 as the full impact of higher rates bites. Rates have now risen by 425 basis points since May last year, adding thousands of dollars to average mortgage repayments in easily the most aggressive cycle on record for the RBA. A hike had seemed possible since consumer price inflation topped forecasts in the third quarter to run at 5.4%, well above the RBA's long term target range of 2-3%. Bullock noted the central bank's own forecasts for CPI had been lifted to 3.5% by the end of 2024, from 3.3%, while inflation would only reach the top of the target band by the end of 2025. The hike puts the RBA in the odd position of being one of the very few developed world central banks still tightening, with markets convinced rates in the United States, Canada and Europe have peaked. https://tmsnrt.rs/3sekmNj The RBA Board had been prepared to tolerate a somewhat slower decline in inflation in order to keep Australia at full employment, an economic feat not achieved since the 1950s. Their patience ran out as inflation proved stickier than hoped in the service sector, while house prices rebounded to record highs and unemployment stayed historically low at 3.6%. https://www.reuters.com/markets/rates-bonds/australias-central-bank-raises-rates-12-year-high-tempers-hawkish-stance-2023-11-07/

2023-11-07 03:04

MUMBAI, Nov 7 (Reuters) - The Indian rupee is expected to have a quiet opening on Tuesday amid a pause in the rally in Asian peers and a rebound in U.S. Treasury yields. Non-deliverable forwards indicate the rupee will open at around 83.22-83.24 to the U.S. dollar compared with 83.2150 in the previous session. The rupee has not responded much to the increasing likelihood that the U.S. Federal Reserve is done hiking rates. The domestic currency for weeks now has been in an 83 to 83.30 range. A forex trader said it is very evident that the rupee is currently in a place where it does not get impacted by the broader dollar moves or anything else. "Honestly, have given up on looking for the trigger that can shake off this current phase," the trader added. The decline in U.S. yields and the rally in Asian currencies reversed slightly. The 10-year U.S. yield and the dollar index rose on Monday, prompting a drop in Asian currencies. The dollar index in the European session had dropped to the lowest in more than a month, before making a recovery. Weak U.S. jobs and manufacturing and services data alongside what a few analysts said was a dovish Fed outcome has dented demand for the dollar. The odds of a Fed rate hike at next month's meeting are down to just 10%. In the wake of the weak data, investors will eye comments by senior Fed officials, including Chair Jerome Powell. Bank of England and European Central Bank officials are also scheduled to speak this week. "We anticipate guidance that rates will have to remain at peak levels for a long time to bring inflation back to target, and that, while there is evidence inflation is improving, the battle is not won," ANZ said in a note. KEY INDICATORS: ** One-month non-deliverable rupee forward at 83.27; onshore one-month forward premium 5.25 paisa ** Dollar index up at 105.32 ** Brent crude futures down 0.4% at $84.8 per barrel ** Ten-year U.S. note yield at 4.64% ** As per NSDL data, foreign investors sold a net $10.3 mln worth of Indian shares on Nov. 3 ** NSDL data shows foreign investors bought a net $67.5 mln worth of Indian bonds on Nov. 3 https://www.reuters.com/markets/currencies/rupee-weigh-pause-rally-asian-fx-rebound-us-yields-2023-11-07/