SYDNEY (Reuters) - Australia said on Wednesday China could lift all its remaining trade blocks by next month as relations between the commodity trade partners stabilise and after Prime Minister Anthony Albanese's visit to Beijing earlier this month.

Albanese's government has taken credit for patching up ties with China since coming to office last year. China has lifted most trade blocks imposed amid a 2020 diplomatic dispute after Australia called for an inquiry into the origins of COVID-19.

"I remain very confident ... that by Christmas all of these trade impediments will be removed," trade minister Don Farrell told ABC Radio from San Francisco, where he is attending Asia-Pacific Economic Cooperation (APEC) meetings.

"And we will have restored that stable relationship that we want with our largest trading partner."

Farrell said he hoped to resolve the issues over lobster and beef, which related to bio-security rules, ahead of a meeting with Chinese counterpart Wang Wentao in San Francisco.

BENGALURU (Reuters) -U.S. electric car maker Tesla (NASDAQ:TSLA) Inc is planning to double the number of components it imports from India, Indian trade minister Piyush Goyal said on Tuesday through a post on social media platform X.

"Proud to see the growing importance of Auto component suppliers from India in the Tesla EV supply chain. It is on its way to double its components imports from India," Goyal posted on X, earlier called Twitter, after visiting Tesla's manufacturing facility at Fremont, California.

He was, however, unable to meet Tesla chief Elon Musk during his visit to the plant, Goyal added.

He said in September Tesla was aiming to source components worth between $1.7 billion and $1.9 billion from India this year, having bought $1 billion of components last year.

The minister's visit to the U.S. was supposed to include discussions with Musk around Tesla's plans to setup an Indian factory, manufacturing a $24,000 car there, sourcing more components and establishing charging infrastructure across the nation, Reuters reported last week.

By Victoria Waldersee and Nick Carey

BERLIN/LONDON (Reuters) -After years of accelerating growth, Europe's electric car sales appear to be entering a go-slow zone as drivers wait for better, cheaper models that are two to three years down the road.

Fully-electric sales in Europe were up 47% in the first nine months of 2023, but instead of celebrating, automakers including Tesla (NASDAQ:TSLA), Volkswagen (ETR:VOWG_p) and Mercedes-Benz (OTC:MBGAF) sounded a sombre note.

High interest rates and a subdued market are putting customers off, they warned, with Volkswagen's EV order intake half what it was last year.

Dealers in Germany and Italy as well as research by four global data analysis firms say there is more behind the slower uptake than economic uncertainty, with the consumers unconvinced that EVs meet their safety, range and price needs.

"The main problem is uncertainty," said Thomas Niedermayer, head of a 45-year-old family-owned Bavarian car dealership.

"Many assume that the technology will improve and would rather wait three years for the next model than buy a vehicle now that will quickly lose value."

Take Flavia Garcia and Tom Carvell in Edinburgh, Scotland.

Their 15-year-old hand-me-down Toyota (NYSE:TM) Auris, nicknamed Martina, needs replacing. With a petrol and diesel car ban nearing, the couple would consider an EV, but are put off by a lack of charging infrastructure, battery life fears and price.

AutoTrader says new EVs in Britain are still on average 33% more expensive than fossil-fuel models.

And most new models in the pipeline targeting entry-level consumers will not hit the market before 2025 at the earliest – by which time they will be contending with an expanded Chinese line-up from BYD (SZ:002594) to Nio (NYSE:NIO) in Europe.

"You want to do the right thing for the environment, but it feels like you're setting yourself up for a very expensive investment that will make your life that bit more complicated," Garcia, a 29-year-old corporate media director, said.

"We'll probably get a hybrid first".

FALLING BEHIND

Critics have long warned that a lack of affordable EVs would eventually stall the steep sales growth boosted by early adopters and corporate fleets.

A weaker performance in September, consumer sentiment surveys and bleak commentary from carmakers and dealers indicates that low growth era may have arrived.

U.S. automakers, though further behind on the transition to EVs, are also feeling the pinch. Ford (NYSE:F) and GM warned recently they were delaying the launch of cheaper EV models and pulling back on spending due to weaker demand and higher costs in the wake of new United Auto Worker contracts.

But the problem is cyclical.

Demand will remain slow for as long as there are no cheaper EVs available, Felipe Munoz of JATO Dynamics said of the slowdown in sales in Europe in September.

"From a regulatory standpoint, they don't have to push product out right now - they can afford to focus on profitability," said Alistair Bedwell, head of powertrain forecasting at GlobalData.

"But they need to have an eye on Tesla and the Chinese brands, because they don't want to get too far behind."

Intention to buy an EV has stayed constant in Germany over the past year, a poll by consumer research firm The Langston Co showed - meaning that although the number of EVs being sold is rising, the number of people wanting to buy an EV is not.

Growing sales may simply be a sign that carmakers who were struggling to produce EVs because of supply chain bottlenecks can finally meet backed up orders, rather than a sign of rising demand, said The Langston Co's insights manager Ben DuCharme.

Philip Nothard, insight director at dealer services firm Cox Automotive, said low residual values also put buyers off as companies and many consumers choose new cars based on what they can sell them for a few years down the line.

"We call it the valley of death, which we will be going through in 2024 to 2027: low residual values, high supply, and low demand," Nothard added.

By David Lawder and Ann Saphir

SAN FRANCISCO (Reuters) - U.S. Treasury Secretary Janet Yellen on Monday said negotiations on the trade section of Indo-Pacific Economic Framework will need further work, a setback for the Biden administration which had hoped to announce substantial completion this week.

Yellen told a news conference there has been "very substantial progress" on three of the four areas under discussion by the 14 IPEF member countries, but there are "remaining issues" on trade."

A centerpiece of the Biden administration's efforts to deepen economic ties with Asian nations and counter China's rising dominance in the Pacific, the IPEF is a forum for multilateral talks aimed at forging agreements in a range of areas, including trade.

She said there had been "significant progress" on the trade pillar, "but it looks not to be complete, like something that is likely to require further work."

"My understanding is that very substantial progress has been made on three of the four pillars" of the talks, she said, referring to talks on supply chains, the climate transition, and anti-corruption.

Yellen's comments on the trade pillar were in line with those of people familiar with the talks, who told Reuters that talks on improving labor and environmental standards, and ways to enforcement compliance have run into resistance from some member countries.

The Biden administration had hoped to announce some outcomes on the trade pillar this week as leaders of Asia Pacific Economic Cooperation (APEC) countries gather in San Francisco.

U.S. President Joe Biden is eager to portray IPEF as producing meaningful outcomes to IPEF countries, which are mostly APEC members, as he seeks to offer Asia a U.S.-led alternative to deeper economic ties to China.

By David Lawder

SAN FRANCISCO (Reuters) -U.S. Treasury Secretary Janet Yellen called on Pacific Rim finance ministers on Monday to boost the productive capacity of their economies while working to finance the transition to low-carbon energy and provide more opportunities for the poor.

Opening a meeting of finance ministers of Asia Pacific Economic Cooperation countries, Yellen said the group's economic dynamism meant the actions they take matter for addressing global challenges.

Yellen said in prepared remarks that the 21 APEC economies needed to collaborate to meet goals for the 2023 U.S. hosting year of creating an "open, dynamic, resilient, and peaceful Asia-Pacific community."

A day after the APEC Secretariat issued new forecasts for slowing growth next year citing the inflation fight and U.S.-China tensions, Yellen said the group needed to increase potential output.

"We need to further improve our long-term economic outlook by boosting labor supply, innovation, and infrastructure investment, in ways that are also sustainable and reduce inequality," Yellen said.

"We need to put ourselves on a sustainable growth path, one where we safeguard our planet while providing our economies with the clean energy they need to grow. And we need to leverage emerging technologies to drive innovation while maintaining safe financial markets," Yellen added.

Treasury released a research paper saying expenditures to reduce carbon emissions now would reduce costlier damages from more frequent and powerful storms, floods and forest fires.

It cited research estimating that spending $50 billion per year to build higher bridges and move transportation routes inland for 136 coastal cities around the world would reduce expected annual economic losses from climate change in 2050 by nearly $1 trillion.

The APEC finance ministers meeting precedes the APEC leaders' summit this week and a high-stakes meeting between U.S.-President Joe Biden and Chinese President Xi Jinping aimed at easing tensions between the world's two largest economies.

On Friday, Yellen agreed with her Chinese counterpart, Vice Premier He Lifeng, to "intensify communication", while warning Beijing's new economic czar to crack down on Chinese that are aiding Russia's Ukraine war effort.

The agenda for the meeting includes bringing more workers into APEC country workforces, investments in infrastructure and research and mobilizing resources to accelerate net-zero emissions goals. Yellen cited the Just Energy Transition Partnerships for Vietnam and Indonesia, financed by G7 countries, multilateral development banks and private sector investors as prime examples.

The meeting also includes discussions on developing carbon markets and Treasury's principles for financial firms' net-zero pledges that will require their lending and investments to align with goals to limit the global temperature increase to 1.5 degrees Celsius by mid-century, "responsible development" of digital assets.

Yellen is due to hold a closing news conference on Monday evening.

ISLAMABAD - Pakistan's interim administration has reached a key agreement with the International Monetary Fund (IMF) on an annual tax collection target of Rs 9,415 billion, a move that underscores the country's commitment to its economic goals without imposing new taxes. This understanding comes as part of the ongoing discussions under a $3 billion standby arrangement (SBA) that has already helped Pakistan stave off a potential sovereign debt default since July.

The IMF's mission chief, Nathan Porter, praised Pakistan for its progress towards economic recovery and adherence to first-quarter targets. The Federal Bureau of Revenue (FBR) has outlined comprehensive strategies to expand the tax net and meet the ambitious tax collection goals set by the IMF. These strategies include plans to combat tax evasion in the real estate sector, which is a significant step forward in enhancing administrative practices.

Dr. Shamshad Akhtar, the caretaker Finance Minister, has assured that there will be no additional tax burdens on citizens and highlighted the government's focus on fiscal prudence to control the budget deficit. She also discussed fiscal measures and strategies to address the issue of circular debt in the power sector with IMF representatives.

The IMF delegation began their assessment last week for the second tranche of the SBA loan, which is expected to continue until December 15. A positive review could release an additional $710 million for Pakistan in December. Dr. Akhtar expressed optimism about these discussions and emphasized the IMF's confidence in the caretaker government's program, which includes development expenditures aimed at improving the country's economic condition.

The agreement between Pakistan and the IMF signifies an important stride in Pakistan's economic strategy, with both parties acknowledging each other's efforts. The caretaker government's commitment to no new taxes and focus on administrative enhancements have been pivotal in these negotiations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

A look at the day ahead in European and global markets from Kevin Buckland

Chip stocks gave Asian equity investors some small bit of cheer to start the week, picking up where Wall Street left off while U.S. yields stayed subdued, which kept a lid on the dollar, too.

But elsewhere, bears were firmly in control.

A lot of that can likely be traced to China, rather than to the Moody's (NYSE:MCO) downgrade to the outlook for the U.S. sovereign debt rating, which investors have taken in stride.

The Chinese consumer has so far refused to ride to the rescue of the world's second-largest economy. Monthly retail sales data is due on Wednesday but the country's Singles Day shopping extraganza over the weekend - equivalent to Black Friday sales elsewhere - recorded only meagre growth.

Looking across the region, Japan's tech-heavy Nikkei managed to keep its head above water, buoyed by gains for its two biggest chip-related shares; Taiwan's benchmark advanced 0.8%.

But Hong Kong flipped from early gains to a loss of about 0.15%. A sub-index of tech shares remained firmly positive but another of mainland property developers slumped more than 1%.

China's blue chips fell 0.5%.

U.S. retail sales data is also due on Wednesday, preceded by CPI a day earlier. The figures could be key in helping the Federal Reserve to plot the path ahead for interest rates, including whether another hike is needed.

The Fed's rhetoric has taken a hawkish turn recently, but markets so far are more focused on the data, particularly the soft non-farm payrolls numbers at the start of this month.

ECB President Christine Lagarde last week said that rates will stay restrictive at least for several quarters. Lagarde deputy Luis de Guindos has his say a little later today, giving the keynote speech to kick off Euro Finance Week.

Elswhere, Bank of England board member Catherine L. Mann will take the podium, after the bank's chief economist, Huw Pill, said last week its projection that monetary policy will need to remain restrictive for an extended period should not be taken as a promise.

Key developments that could influence markets on Monday:

-ECB's de Guindos, BoE's Mann speak

-UK Rightmove (OTC:RTMVY) house prices

-Sweden SEB housing

-New York Fed consumer expectations survey

By Byron Kaye and Rishav Chatterjee

(Reuters) - Australia's No. 4 lender ANZ said on Monday that surging demand for its institutional banking services propelled its annual profit to a record but an aggressive campaign to sell more mortgages flattened its margin, sending its shares lower.

As Australia's banks redirect focus away from their traditional earnings engine of mortgages where interest rate hikes have spurred competition, ANZ has benefited from an institutional payments platform that it says processes some of the world's biggest cross-border transactions.

That pushed operating income from the bank's institutional unit in front of its retail unit, by dollar value, from March to September, and helped the Melbourne-listed company grow annual profit 14% to A$7.4 billion ($4.7 billion), just missing a Visible Alpha consensus forecast of A$7.56 billion.

But analysts expressed concern about a faster-than-expected narrowing of profit margin from the bank's retail unit, the only one of Australia's so-called "big four" lenders which has persisted with offering cash handouts to lure mortgage customers looking for a cheaper deal.

Even as ANZ's institutional division grew its net interest margin (NIM) - the interest it collects on loans minus interest paid to deposit-holders - the bank's overall NIM declined 10 basis points to 1.65% in the six months to September, more than NIMs reported this month by rivals Westpac and National Australia Bank (OTC:NABZY).

ANZ shares were down 3.1% by midsession, against a flat overall market, amid worries about whether the bank was sacrificing profitability for mortgage volume which had lagged in previous years.

"We expect questions to be raised about margin/volume management in the Australia retail division, particularly due to NIM pressure stemming from ANZ's relatively aggressive growth in Australia home lending," E&P Capital analyst Azib Khan said.

ANZ CEO Shayne Elliott denied forgoing margin to grow mortgages faster than the market, and challenged comments from other banks which have said they were intentionally slowing mortgage growth while competition eroded profit.

"The fact that others have stepped back from the market: I think there's a lot of people rationalising their loss of share," he said on a call with journalists.

"That's for them to answer, not me. All I know is we've been winning more customers than we have historically."

ANZ declared a final dividend of 94 Australian cents per share, up from 74 cents a year ago.

(This story has been refiled to correct typo in the headline)

By Brigid Riley

TOKYO (Reuters) - The dollar was steady on Monday as traders awaited another batch of inflation data from the United States that is expected to offer further clues this week on whether the Federal Reserve has more work to do to tame price pressures.

The Japanese yen remained vulnerable, hovering not far from a one-year low against the greenback as markets remained on watch for possible intervention by Tokyo.

The focus for most traders will be firmly on U.S. consumer price index (CPI) numbers due on Tuesday after the Fed's policy meeting this month tempered its hawkish stance although Fed Chair Jerome Powell last week hinted that the battle against inflation may not be over yet.

Retail sales the following day will also provide more information on the state of demand in the U.S. economy, which has shown signs of resilience in the face of high borrowing cost.

"We expect the USD to remain on a strong footing," Lenny Jin, Global FX Strategist at HSBC, wrote in a note, citing the U.S. economy's continued growth outperformance as one crucial factor.

HSBC expects November U.S. core CPI to remain unchanged compared to last month, "while further disinflation signals may only come in February 2024," said Jin.

Elsewhere, market reaction was muted to news announced shortly before foreign exchange trading closed in New York on Friday that Moody's (NYSE:MCO) lowered its outlook for the U.S. credit rating to "negative".

The dollar index, which measures the dollar against a basket of currencies, was last mostly flat at 105.80.

There was little relief for the yen, however, which has come under pressure from rising U.S. Treasury yields and continued dollar strength.

The Japanese currency was trading around 151.58 yen against the dollar on Monday, just under a one-year low of 151.74 hit at the end of October.

A hot number from one of the U.S. economic data releases this week "would certainly do the trick" in pushing dollar/yen above 151, said Tony Sycamore, a market analyst at IG.

"Alternatively, a continuation of the more supportive risk backdrop would likely entice carry buyers to add to positions and test the measure of the (Bank of Japan)."

Elsewhere, sterling stood at $1.2228 to the dollar, firm ahead of UK average weekly earnings data on Tuesday and a CPI reading on Wednesday.