Economy

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SINGAPORE (Reuters) – The yen got some much-needed respite on Tuesday as it steadied on the stronger side of 155 per dollar thanks to a pullback in the U.S. currency, which ran into profit-taking after a stellar rally that saw it scale a one-year high.The yen last edged 0.2% higher to 154.40 per dollar, recovering from its fall in the previous session after Bank of Japan Governor Kazuo Ueda stuck to his usual script and failed to offer any hints on whether a rate hike could come in December.”Recent (yen) weakness had many market participants expecting Ueda to sound hawkish, but in the end the Governor stuck to his recent narrative,” said Rodrigo Catril, senior FX strategist at National Australia Bank (OTC:NABZY).”We think the economy and price pressures are making a strong case for a hike in December, but much will depend on whether there is any political push back, given the LDP is looking to regain public support, after a poor show at the recent Lower House election.”The yen has fallen some 7% since October and had weakened past the 156 per dollar level for the first time since July last week, leaving traders on alert for any intervention from Japanese authorities to shore up the currency.In the broader market, the dollar was on the back foot as it eased further away from last week’s one-year top against a basket of currencies.Sterling steadied at $1.2676, while the dollar index tacked on 0.04% to 106.26, after falling 0.4% overnight.”You do get bouts of profit taking after big moves like this,” said Jarrod Kerr, chief economist at Kiwibank.The greenback has risen more than 2% for the month thus far, buoyed by reduced expectations of the extent of Federal Reserve rate cuts and on the view that President-elect Donald Trump’s touted policies of tariffs, reduced immigration and debt-funded tax cuts will be inflationary to the U.S. economy.The euro similarly rebounded from last week’s one-year low and last bought $1.0590.Two top European Central Bank policymakers signalled on Monday they were more worried about the damage that expected new U.S. trade tariffs would do to economic growth in the euro zone than any impact on inflation.Elsewhere, the Australian dollar fell 0.15% to $0.6499.Minutes of the Reserve Bank of Australia’s November board meeting released on Tuesday showed policymakers saw no immediate need to change interest rates, having left them steady for a year now, but said it was important to be ready to act as the economic outlook evolves.Markets have not fully priced a cut in rates until May next year, with a move in February after the fourth-quarter inflation report at just a 38% probability.The Reserve Bank of New Zealand, meanwhile, meets next week and traders have priced in 50 basis points worth of easing from the central bank.The kiwi last traded 0.24% lower at $0.5880. More

The country, once a beneficiary during the 1960-1970s, will contribute this year around 845.6 billion won ($608.26 million) to the fund for financial aid to low-income countries, up from 584.8 billion won in the previous fund replenishment round in 2021. “It is for South Korea to play a leading role as a global pivot state and to induce active contributions from other countries,” the ministry said in a statement. U.S. President Joe Biden on Monday pledged a record $4 billion contribution during a closed session of the Group of 20 summit in Rio de Janeiro, up from $3.5 billion in 2021. ($1 = 1,390.2000 won) More

(Reuters) -China’s largest express delivery company S.F. Holding said on Tuesday it plans to raise up to HK$6.17 billion ($792.71 million) in a Hong Kong listing, the latest sign of a revival in the city’s capital markets.The Shenzhen-listed company will issue 170 million shares in a price range of HK$32.30 to HK$36.30 per share, according to its regulatory filings.The final price will be set on Nov. 25, and the stock is due to start trading on Nov. 27.The courier group, known for its flagship SF Express delivery business, is regarded as China’s answer to FedEx (NYSE:FDX) and DHL.The listing has attracted ten cornerstone investors, led by Oaktree Capital Management, which have subscribed for up to HK$204.8 million worth of stock, the filings showed.The company said about 45% of the funds raised in the listing would be spent on growing its international business, especially across South-east Asia. It added it has earmarked about HK$1.1 billion for buyout activity, forming joint ventures or making minority investments in businesses.S.F. Holding, initially filed for a Hong Kong listing in August last year. Reuters reported in May last year the company was aiming to raise between $2 billion and $3 billion.There have been $9.1 billion worth of new listings in Hong Kong in 2024, according to Dealogic data, compared to $5.88 billion in 2023.While well off the 2020 peak of $51.6 billion, the prospect of lower global interest rates has prompted some revival in the city’s listing market.S.F. Holding’s Shenzhen-listed share price has risen 4.75% this year.($1 = 7.7834 Hong Kong dollars) More

WASHINGTON (Reuters) -U.S. President-elect Donald Trump said on Monday that he is nominating former Wisconsin Representative Sean Duffy, now a Fox News host, to be transportation secretary. If confirmed, Duffy will oversee aviation, automotive, rail, transit and other transportation policies at the department with about a $110 billion budget as well as significant funding that remains under the Biden administration’s 2021 $1 trillion infrastructure law and EV charging stations. Trump has vowed to reverse the Biden administration’s vehicle emissions rules. He has said he plans to begin the process of undoing the Biden administration’s stringent emissions regulations finalized earlier this year as soon as he takes office. The rules cut tailpipe emissions limits by 50% from 2026 levels by 2032 and prod automakers to build more EVs.Duffy will face a number of major transportation issues. U.S. traffic deaths have fallen this year but still remain sharply above pre-COVID levels. The fatality rate remains higher this year than in any pre-pandemic year since 2008. He will face pressure to ease rules for self-driving cars sought by Tesla (NASDAQ:TSLA) and other automakers.Trump said Duffy will prioritize “Excellence, Competence, Competitiveness and Beauty when rebuilding America’s highways, tunnels, bridges and airports. He will ensure our ports and dams serve our Economy without compromising our National Security.”Duffy will oversee the continuing enhanced oversight of Boeing (NYSE:BA). The Federal Aviation Administration, which is part of USDOT, capped production at 38 737 MAX planes per month in January after a door panel missing four key bolts flew off an Alaska Airlines 737 MAX 9 in midair that month, exposing serious safety issues at Boeing. He will also decide whether to continue the Biden administration’s aviation passenger rights push and whether to approve more airline joint ventures.Duffy will also be in charge of oversight of companies run by Elon Musk, who has been closely involved in Trump’s transition.USDOT is investigating Tesla Autopilot, while the FAA has proposed to fine SpaceX for violating space license rules. Musk has called for the resignation of FAA Administrator Mike Whitaker.A persistent shortage of controllers has delayed flights and, at many facilities, while a series of near miss incidents involving passenger jets have raised safety concerns.Congress also has been considering significant rail safety reforms in the aftermath of the February 2023 derailment of a Norfolk Southern (NYSE:NSC) train in East Palestine, Ohio. More

BENGALURU (Reuters) -Bank Indonesia will leave interest rates unchanged on Wednesday, aiming to protect the rupiah from further depreciation amid concerns U.S. President-elect Donald Trump’s policies could spur dollar strength, a Reuters poll of economists found.With inflation having stayed within BI’s target range of 1.5-3.5% for over a year, the central bank can focus on the rupiah which despite regular interventions has dropped nearly 5% from a September peak, arguing for fewer rate cuts from the bank whose mandate is to maintain currency stability.Some economists in the latest survey revised their expectations from a rate cut in an October poll to a hold at the Nov. 20 meeting.Over 70% of respondents, 25 of 34 in the Nov. 11-18 Reuters poll, predicted the central bank would keep its benchmark seven-day reverse repurchase rate at 6.00% this week.Median forecasts showed BI cutting rates by 25 basis points to 5.75% in December, a quarter percentage point less than the previous poll predicted.”I think it’s likely to be a close call. They’re a little bit concerned about the currency. It has fallen back since the election in the U.S. so they’d like a bit more clarity on what the outlook is,” said Gareth Leather, senior Asia economist at Capital Economics.”I suspect they’ll keep rates on hold this month.”Among those who expected BI to pause in November, two-thirds or 16 of 25 economists expected a 25 basis point cut to 5.75% in December.Median forecasts showed rates falling to 5.00% in the fourth quarter next year compared to the second quarter in the last two polls.The expected delay partly reflects diminishing bets on rate cuts from the U.S. Federal Reserve as Trump’s policies – broad-based tariffs and tax cuts – are seen as inflationary, keeping the U.S. dollar stronger for longer.”BI will likely struggle to find more opportunities to keep easing monetary policy in a stronger U.S. dollar environment,” said Brian Tan, senior regional economist at Barclays (LON:BARC).”We believe the risks have tilted towards a delayed resumption of BI rate cuts, as well as a higher terminal rate than would otherwise have been the case.”(Other stories from the Reuters global economic poll) More

WASHINGTON (Reuters) -U.S. President Joe Biden pledged a $4 billion U.S. contribution to the World Bank’s International Development Association fund for the world’s poorest countries, a senior Biden administration official said on Monday.Biden announced the three-year U.S. pledge during a closed session of the Group of 20 summit in Rio de Janeiro, the official told reporters, adding that the U.S. Treasury was leading negotiations at the World Bank for the IDA replenishment. The new U.S. pledge is a record and substantially exceeds the $3.5 billion Washington committed in the previous IDA fund replenishment round in December 2021.It is unclear if U.S. President-elect Donald Trump, who has proposed cutting foreign aid in the past, will honor Biden’s pledge as he and billionaire Tesla (NASDAQ:TSLA) and SpaceX CEO Elon Musk seek to slash U.S. spending through a new government efficiency panel. An appropriation by the U.S. Congress to fund the commitment would not likely take place until after Trump takes office in January.A spokesperson for Trump’s transition team did not respond to a request for comment on the matter.’HISTORIC’ PLEDGEEarlier in Rio de Janeiro, U.S. deputy national security adviser Jonathan Finer told reporters that Biden would announce a “historic” pledge to the IDA replenishment.Finer also told reporters at a briefing on the G20 summit that Biden will launch a bilateral clean energy partnership when he meets Brazilian President Luiz Inacio Lula da Silva on Tuesday.The World Bank’s IDA fund, which provides mainly grants and very low interest loans to the poorest countries, is replenished every three years, and a pledging conference is scheduled for Dec. 5-6 in Seoul. World Bank President Ajay Banga is aiming for a record amount exceeding the $93 billion refunding in December 2021, amid rising demands from poor nations in Africa and elsewhere that are struggling with crushing debts, climate disasters, conflict and other pressures. Banga told Reuters in October that a $120 billion replenishment is possible, but that goal would require some substantial increases in country commitments.Biden’s new U.S. commitment is about 14.3% higher than its 2021 contribution. At the IMF-World Bank annual meetings in October, Spain announced plans to boost its contribution by 37% to 400 million euros ($423 million).Denmark in September announced a 40% increase in its contribution to about $492 million. More

WEST PALM BEACH, Florida (Reuters) -U.S. President-elect Donald Trump’s search for a Treasury secretary is widening after it stalled over the weekend, and he is looking at other candidates, two sources briefed on the matter said on Monday.Among the names now being considered are Apollo Global Management (NYSE:APO) Chief Executive Marc Rowan, two sources said, and former Federal Reserve Governor Kevin Warsh, according to a separate source briefed on the matter, confirming earlier reporting by the New York Times (NYSE:NYT) and the Wall Street Journal.A number of names have cycled through as possibles for the job in the new Trump administration, but no announcement has been made. However, the team making the pick has now widened the search, the two sources said on Monday. Billionaire investor John Paulson was originally one lead contender but exited the race last week, citing “complex financial obligations”. That left another lead contender, investor Scott Bessent, although banker Howard Lutnick also emerged as a top contender, Reuters reported last week. A number of other people have also been speculated for the position. Bloomberg reported on Monday that Bessent was being considered for the White House’s National Economic Council, but holding off accepting until a decision is made on the Treasury secretary. Warsh, 54, is a Visiting Fellow at the Hoover Institution at Stanford University with a long track record of hawkish views on both inflation and deficits. A former mergers and acquisitions banker at Morgan Stanley (NYSE:MS), Warsh was a White House economic policy adviser from 2002 to 2006, and was then nominated by then-President George W. Bush to be a governor on the seven-member Federal Reserve Board.Warsh left the Fed in 2011, a few months after joining his colleagues in unanimous support of expanding the Fed’s bond-buying program, and then making public his reservations about expanding the central bank’s balance sheet. Rowan is CEO of Apollo, one of the world’s biggest investors in alternative assets such as corporate credit and private equity, succeeding Leon Black in 2021.Rowan and Warsh did not immediately respond to requests for comment. A spokesperson for Bessent declined to comment. A spokesperson for Lutnick declined to comment.It was unclear if any candidates had been ruled out or if other names could be added to the mix. SCRAMBLE FOR TOP ROLEThe Treasury secretary role is one of the highest-profile cabinet posts, overseeing the country’s financial and economic policy. As such, it is one of the key roles being watched by global investors and Wall Street.Top candidates have amassed public supporters as the process has heated up. Bessent’s supporters include Republican U.S. Senator Lindsey Graham, according to an article last week in Semafor, and investor Kyle Bass, who wrote on X last week that Bessent would be the best choice for markets and citizens. “I support Bessent 100%,” Bass told Reuters by text. “As Treasury Secretary, you must fully understand the bond market, global payment flows, geopolitics, people, financial market flows, inflation, and the federal budget. Scott is far and above the best candidate for the position.” Bass added that Bessent had not been part of weekend “drama” about who would get the position. “He’s been silent and working on solutions for President Trump,” wrote Bass. A spokesperson for Graham said on Monday that he maintains his position.Other supporters include Larry Kudlow, who recently said he was a “big fan” of Bessent and that he was his “first choice” to lead Treasury, according to a Wall Street Journal story on Nov. 11; and investor Stanley Druckenmiller, who has said that Bessent, his former colleague at Soros Fund Management, was “the only guy I know who’s not only a market participant but very fluent and comfortable in academic circles,” according to an Axios story on Nov. 13. Kudlow did not respond to a request for comment. A spokesperson for Druckenmiller did not respond to a request for comment.Conservative economist and Trump adviser Steve Moore said last week he strongly favored Bessent, as he was a ballast in the right-of-center Washington movement pushing deregulation and tax cuts to promote growth.”I think most of the free-market conservatives are getting behind Scott Bessent,” Moore told Reuters last week.On the other side, two top Trump advisers, Tesla (NASDAQ:TSLA) CEO Elon Musk and Robert F. Kennedy Jr., who is Trump’s pick to head the Health and Human Services Department, sided with Lutnick for the position, sending supportive posts on social media.Musk did not immediately respond to an email seeking comment beyond his post on X. A spokesperson for Kennedy did not immediately respond to a request for comment. The Trump transition team did not immediately respond to a request for comment.As of Sunday, Trump was also considering Lutnick for another economic job, possibly that of commerce secretary, the source briefed on the matter told Reuters, speaking on condition of anonymity. That source also said that Trump’s former U.S. trade representative Robert Lighthizer was being considered for Commerce. Lighthizer did not respond to a request for comment on Commerce. More