Latest news with #Loonie
Yahoo
3 days ago
- Business
- Yahoo
India to build rare earth magnet stockpiles, incentivize domestic production
-- India is in discussion with various companies to create long-term reserves of rare earth magnets. The government also aims to encourage domestic production by offering fiscal incentives, according to a Reuters report on Thursday. The government, led by Prime Minister Narendra Modi, is keen to expand domestic manufacturing capabilities to ease the dependence on China. It is contemplating offering production-based fiscal incentives to businesses, the report added. The Ministry of Heavy Industries is reportedly formulating a plan that includes partially subsidizing the difference between the final price of magnets produced in India and the cost of imported Chinese magnets. This approach would help achieve cost equality and stimulate local demand. However, the funding for this initiative is still under discussion. The government is expected to meet with industry representatives next week to finalize the details. Related articles India to build rare earth magnet stockpiles, incentivize domestic production ECB cuts interest rates for eighth time amid trade tensions, cooling inflation Tariffs, oil prices, and a stronger Loonie drag Canada's April exports down 10.8%
Yahoo
5 days ago
- Business
- Yahoo
Tariffs, oil prices, and a stronger Loonie drag Canada's April exports down 10.8%
-- Canada's trade balance deteriorated sharply in April, with merchandise exports plunging 10.8% and imports sliding 3.5%, according to data released Thursday by Statistics Canada. The resulting merchandise trade deficit hit a record $7.1 billion, widening significantly from the $2.3 billion shortfall posted in March. Exports totaled $60.4 billion, the lowest since June 2023, marking a third consecutive monthly decline and the steepest drop in five years. Notably, exports to the United States fell 15.7% following the imposition of tariffs on Canadian goods, including a focus on Canadian-manufactured motor vehicles in early April, while exports to other countries rose by 2.9%. Automotive exports were among the hardest hit, with motor vehicles and parts plunging 17.4%. Passenger cars and light trucks in particular declined 22.9% after surging in the months prior as automakers rushed to ship vehicles ahead of anticipated U.S. levies. Exports of consumer goods dropped 15.4% to $7.0 billion, the lowest level since December 2023, with nearly all groups posting losses. The contraction was especially pronounced in food products such as chocolate and frozen items, as well as pharmaceuticals and meat, primarily due to falling demand from the United States. Energy product exports also lost ground, falling 7.9% as crude oil exports tumbled 11.7% on weaker global pricing and demand. A rupture-induced pipeline shutdown in the northern U.S. further constrained volumes shipped, amplifying the sector's downturn for a third straight month. On the import side, declines were less severe, cushioned by a sharp increase in unwrought gold, silver, and platinum group metal imports, which nearly tenfolded to a record $2.7 billion. Removing those gains, imports would have dropped 6.9%, impacted predominantly by a 17.7% decline in motor vehicle and parts imports and downturns in machinery and electronics. Currency fluctuations also played a role in the monthly weakness: the Canadian dollar rose 1.8 U.S. cents compared to March, its largest monthly gain since May 2021. When measured in U.S. dollars, exports fell a lesser 8.4% and imports just 0.9%, highlighting the currency's dampening effect on trade values denominated in Canadian dollars. Broader trade dynamics painted a mixed picture: while trade with the U.S. eroded, activity with non-U.S. partners set new records. Exports to countries such as the United Kingdom (TADAWUL:4280), China, and Brazil grew, and total trade with non-U.S. nations rose to an all-time high of $47.3 billion, with the deficit in that segment expanding to $10.7 billion. Related articles Tariffs, oil prices, and a stronger Loonie drag Canada's April exports down 10.8% India to build rare earth magnet stockpiles, incentivize domestic production Bond yields fall as rate cut bets rise Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
India to build rare earth magnet stockpiles, incentivize domestic production
-- India is in discussion with various companies to create long-term reserves of rare earth magnets. The government also aims to encourage domestic production by offering fiscal incentives, according to a Reuters report on Thursday. The government, led by Prime Minister Narendra Modi, is keen to expand domestic manufacturing capabilities to ease the dependence on China. It is contemplating offering production-based fiscal incentives to businesses, the report added. The Ministry of Heavy Industries is reportedly formulating a plan that includes partially subsidizing the difference between the final price of magnets produced in India and the cost of imported Chinese magnets. This approach would help achieve cost equality and stimulate local demand. However, the funding for this initiative is still under discussion. The government is expected to meet with industry representatives next week to finalize the details. Related articles India to build rare earth magnet stockpiles, incentivize domestic production ECB cuts interest rates for eighth time amid trade tensions, cooling inflation Tariffs, oil prices, and a stronger Loonie drag Canada's April exports down 10.8%
Reuters
12-03-2025
- Business
- Reuters
Dollar on defensive as Trump tariffs fuel economic worries
Summary Euro hovers near 5-month high on Ukraine peace hopes Loonie steady before BoC after swinging on tariff flip flop Bitcoin holds ground at $82,821 after bounce TOKYO, March 12 (Reuters) - The dollar languished near a five-month low versus major peers on Wednesday, as worries about the U.S. economy continued to simmer under President Donald Trump's unpredictable trade policies. The euro hovered close to a five-month peak on increased optimism for an end to the war in Ukraine. The Canadian dollar endured a volatile session overnight after Trump pledged to double tariffs on steel and aluminium to 50%, only to reverse course just hours later. The Bank of Canada decides policy on Wednesday, with traders fully expecting another quarter-point interest rate cut. "Trade uncertainty persists and therefore so does market volatility," said Kyle Rodda, senior financial markets analyst at "The U.S. growth outlook continues to deteriorate," putting increased attention on the release of the consumer price index (CPI) later in the day, "which could be a significant source of volatility", Rodda said. The U.S. dollar index , which measures the currency against a basket of six major peers, was flat at 103.47 in early Asian trade, following a 0.46% slide on Tuesday that took it as low as 103.21 for the first time since October 16. A run of softer U.S. economic data continued on Tuesday with small-business confidence dropping for a third straight month in February. Investors have been on edge since Trump refrained from ruling out the possibility of a recession under his trade policies in a Sunday interview with Fox News. Wednesday's CPI report may be setting the market up for "a lose-lose situation", said Julien Lafargue, chief market strategist at Barclays Private Bank. "A higher-than-expected reading could fuel the stagflation narrative while a weaker-than-expected print could cement recession fears," Lafargue said. "What the market really needs at this point is better visibility on growth rather than on inflation." The euro eased 0.05% to $1.0913, but remained not far from the previous session's peak of $1.0947, the highest level since October 11. Ukraine said on Tuesday it would accept a U.S. proposal for an immediate 30-day ceasefire in its conflict with Russia. Europe's single currency was already flying high on the promise of massive fiscal spending by Germany, although the situation has become more complex after the Greens vowed to block those plans and tabled rival proposals. Sterling eased 0.11% to $1.2933, but that followed a 0.53% rally on Tuesday. The dollar gained 0.17% to 148.01 yen, after sinking to a five-month trough at 146.545 yen in the prior session. The greenback was steady at C$1.44325, after swinging between gains of 0.5% and losses of 0.4% on Tuesday. Cryptocurrency bitcoin was stable at $82,821 after bouncing from a four-month trough at $76,666.98 on Tuesday.
Reuters
07-02-2025
- Business
- Reuters
Trump's tariff roulette: The markets left reeling from trade threats
LONDON, Feb 7 (Reuters) - U.S. President Donald Trump, opens new tab 's ability to swiftly impose, and then delay, tariffs on top trading partners has left world markets swinging one way and then another. Last weekend, for example, he announced sweeping tariffs on Canada, Mexico and China, and then on Monday he announced one-month delays for Canada and Mexico. These moves show that the risk of a global trade war that hurts economic growth and fuels inflation remains high. "The warning shot that has been fired by the White House has confused the world at large," said Tina Fordham, founder and geopolitical strategist at Fordham Global Foresight. Here's where some hard-hit markets stand almost a week after Trump launched his salvo: 1/ SHAKEN LOONIE Canada's dollar , has been in the firing line, briefly hitting over 20-year lows before rebounding on the tariff delay, leading to its largest single-day swing in nearly five years. But the reprieve for the so-called Loonie may not last since the prospect of 25% tariffs remains. Even if tariffs are avoided, uncertainty could weigh on business activity, keeping Canada on a rate-cutting path. The loonie ended January down for the fifth straight month, its longest losing streak since 2016; currency volatility remains high. CBA forecasts dollar/Canadian dollar at 1.52 by the third quarter, from 1.44 now. 2/ VOLATILE PESO Volatility has been embedded in Mexico's currency since last year, when it lost almost a fifth of its value against the dollar . The tariff threats, direct and indirect, have seen the peso fall as much as 2.2% this year, and also gain as much as 3.5%. In a scenario of 25% tariffs, Wall Street analysts expect the Mexican economy to fall into a recession. The peso, which ended January at 20.678 per dollar, is seen weakening to as much as 22 or further per dollar according to BBVA. This would imply a weakening of more than 7% from current levels. The peso hasn't traded beyond 22 since November 2021. 3/ EURO DOUBLE WHAMMY Trump says the European Union is next in line for tariffs, keeping the euro under pressure . It has slid 5% since the U.S. election, one of the biggest fallers among major currencies, briefly hitting $1.0125 on Monday -- the lowest since late 2022. Nearly one-third of strategists polled by Reuters reckon the euro could fall to $1 within a year as trade uncertainty hurts the economy. The U.S. is the EU's most important trading partner, with $1.7 trillion in two-way goods and services trade. Further denting the euro, markets anticipate the European Central Bank will cut rates by around 40 basis points more than the Federal Reserve will this year. Europe could also be a big loser in a U.S.-China trade war. "If Chinese goods cannot reach the U.S., they will end up in Europe adding to disinflationary pressure," said George Saravelos, Deutsche Bank's global head of FX research. 4/ CAR TROUBLE Autos, already pummeled by trade worries, may be in the losing camp - although they too have felt some relief in recent days. Stellantis ( opens new tab, which owns the Fiat and Peugeot brands, and Germany's Volkswagen posted share-price falls of more than 7% on Monday before recovering. European autos share valuations are particularly depressed. Rivals are also fretting. Ford CEO Jim Farley reckons the U.S. carmaker could weather a few weeks of tariffs, but prolonged 25% duties on Mexico and Canada "would have a huge impact on our industry, with billions of dollars of industry profits wiped out, and an adverse effect on the U.S. jobs." Japan's Nissan (7201.T), opens new tab, Toyota (7203.T), opens new tab and Honda (7267.T), opens new tab make some of their most popular U.S. models in Canada or Mexico, so tariffs could hurt them as well. 5/ CHINA SHRUGS China is the only major trading partner Trump has actually imposed tariffs on, with a limited reaction so far. The closely managed yuan is slightly stronger than it was right before Trump took office, , and Hong Kong (.HSI), opens new tab and mainland shares (.CSI300), opens new tab are higher. Bank of Singapore chief economist Mansoor Mohi-uddin believes one reason for this is that China's initial retaliation has been muted, with tariffs on select U.S. exports to China that amounted to just $14 billion in exports last year. This leaves "the door open for a potential deal between Washington and Beijing to avert a more damaging broader trade war," he said. U.S. levies on China are also well below the 60% Trump threatened during the election. China meanwhile has not allowed the yuan to weaken sharply to mitigate the tariff impact. Concern about the damage a weak currency would have on investor confidence, and relations with other trading partners, has prevented Beijing from allowing a significantly weaker yuan, analysts say.
