Euro Ticks up despite French Govt Collapse

The euro managed to rise despite the uncertainty because the collapse of the government was already priced in (File Photo/Reuters)
The euro managed to rise despite the uncertainty because the collapse of the government was already priced in (File Photo/Reuters)
TT

Euro Ticks up despite French Govt Collapse

The euro managed to rise despite the uncertainty because the collapse of the government was already priced in (File Photo/Reuters)
The euro managed to rise despite the uncertainty because the collapse of the government was already priced in (File Photo/Reuters)

The euro picked up on Thursday despite the collapse of the French government, which had been widely expected, and the yen rallied as traders looked to the Bank of Japan decision on Dec. 19.

The euro was up 0.16% at $1.0525, not far from the two-year low of $1.0332 hit at the end of November as traders braced for a drawn-out reckoning for France.

French lawmakers passed a no-confidence vote against the government on Wednesday evening, throwing the country deeper into a crisis that threatens its capacity to tame a massive budget deficit. The risk premium - or spread - investors demand to hold French debt over German has risen to around its highest since 2012, according to Reuters.

The euro managed to rise despite the uncertainty because the collapse of the government was already priced in, said Lee Hardman, senior currency analyst at MUFG.

"The contagion outside of French markets is fairly limited. If you look at the spreads between (German and) Italian and Spanish bonds they've actually been falling, so it's not spilling over into European markets and that limits the implications for the European economy," he said.

Traders are all but certain the European Central Bank will cut rates next week and are pricing in around 157 basis points of easing by the end of 2025.

YEN GAINS GROUND

In Asia, the Japanese yen strengthened over 0.3% to 150.80 per dollar as traders assessed whether the Bank of Japan will hike interest rates later this month.

Analysts said comments from typically dovish policymaker Toyoaki Nakamura that he's not opposed to rate hikes had helped push the currency higher.

Expectations had been growing that the BOJ will hike rates at its Dec. 18-19 meeting, buoyed by comments from Governor Kazuo Ueda. But media reports published on Wednesday suggested the BOJ may skip a rate hike this month, muddling those wagers.

The South Korean won dipped slightly as the nation's finance ministry said the government would activate 40 trillion won ($28.35 billion) worth of market stabilization funds after the chaos that followed President Yoon Suk Yeol declaring martial law on Tuesday and then rescinding.

The dollar index, which measures the US currency against six rivals, was slightly lower at 106.18.

Sterling ticked up 0.15% to $1.2721, while the Australian dollar was flat at $0.6431 after dropping about 0.9% in the previous session on weak data.

Federal Reserve Chair Jerome Powell said on Wednesday the US economy is stronger now than the central bank had expected when it started cutting rates in September, and he appeared to signal his support for a slower pace of reductions ahead.

Bets on Fed rate cuts held broadly steady, however, perhaps influenced by weaker-than-expected services sector data released on Wednesday. Markets are pricing in about a 74% chance of a 25-basis-point rate cut later this month.

The spotlight will be on Friday's US non-farm payrolls report for November, which is expected to show 200,000 jobs added in the month, according to a Reuters survey, after only 12,000 jobs were created in October, the lowest number since December 2020.

 

 

 



Royal Commission for Riyadh City Announces 'Riyadh Creative District'

A night view of Riyadh, Saudi Arabia. (SPA)
A night view of Riyadh, Saudi Arabia. (SPA)
TT

Royal Commission for Riyadh City Announces 'Riyadh Creative District'

A night view of Riyadh, Saudi Arabia. (SPA)
A night view of Riyadh, Saudi Arabia. (SPA)

The Board of Directors of the Royal Commission for Riyadh City (RCRC) announced the launch of the “Riyadh Creative District,” a transformative initiative that aims to position the Saudi capital as a global creative and media hub while reinforcing the Kingdom’s leadership in the creative economy.

The new project is set to become a cornerstone in Riyadh’s evolution into a world-class metropolis, integrating seamlessly with the capital’s major development initiatives, reported the Saudi Press Agency on Thursday.

The project aims to foster a thriving ecosystem where creative minds, industry leaders, and emerging talent can collaborate to develop content and new ideas, drive cultural and technological advancements, and contribute to the Gross Domestic Product (GDP).

The Creative District aligns with Saudi Arabia’s long-term strategic vision by emphasizing the role of media, technology, culture and innovation in economic diversification and sustainable growth.

Minister of State, Member of the Council of Ministers, and CEO of RCRC Eng. Ibrahim bin Muhammad Al-Sultan expressed profound appreciation to the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince, Prime Minister, and Chairman of the Royal Commission for Riyadh City, for their continued support of the commission’s projects, which are pivotal in shaping the future of Riyadh and enhancing its global competitiveness.

“The Riyadh Creative District is designed to be a vital extension of the capital’s creative, cultural, and economic landscape, reinforcing the city’s status as a dynamic hub for content creation and innovation. Through this initiative, we are not only establishing an inspiring space for creative industries to thrive, but also providing a gateway for global talent to engage with the Kingdom’s creative economy,” he said.

“This initiative embodies Saudi Arabia’s forward-looking vision to cultivate a knowledge-based society, and develop a globally integrated creative sector that generates sustainable economic and social impact,” he added.

A key milestone in the project’s launch is the signing of a strategic partnership agreement between RCRC and the King Abdullah Financial District (KAFD), ensuring a structured and integrated approach to its implementation. This collaboration is expected to catalyze the expansion of the creative industries in Saudi Arabia, bridging the gap between local and international expertise and fostering cross-sector innovation.

The Creative District is set to redefine the role of creativity in economic development, by offering a dynamic platform that connects designers, artists, entrepreneurs, and technology pioneers. It will serve as an incubator for new business models, cultural enterprises, and digital transformation projects, ultimately reinforcing Riyadh’s position as the regional epicenter for creative excellence.

Beyond GDP contributions, the district will play a crucial role in cultural exchange and community engagement by hosting interactive programs, industry events, and knowledge-sharing initiatives that empower emerging talent and facilitate the exchange of ideas. Its impact is expected to extend beyond Riyadh, influencing the broader Middle East creative ecosystem and elevating the Kingdom’s standing as a destination for investment in the creative economy.

Aligned with the goals of Saudi Vision 2030, the Creative District underscores the Kingdom’s commitment to fostering a globally competitive creative sector, that not only boosts the quality of life but also drives innovation-led economic transformation. By offering a supportive environment for creatives, startups, and established enterprises, the district is poised to shape the future of creative industries in Saudi Arabia, offering new employment opportunities, accelerating digital adoption, and laying the groundwork for a knowledge-driven economy.

With a focus on sustainability and long-term impact, the Creative District will also contribute to Riyadh’s broader urban transformation, integrating smart infrastructure, cutting-edge technology, and sustainable design principles to create an environment where creativity and innovation can flourish. The Creative District will be instrumental in attracting both regional and international investment in the creative industries, ensuring that Saudi Arabia remains at the forefront of global creative and cultural advancements.

As Riyadh continues its journey toward becoming a premier global destination for business, culture, and innovation, the Creative District will serve as a testament to the Kingdom’s unwavering commitment to fostering talent, advancing creative industries, and building a prosperous future driven by ingenuity, collaboration, and forward-thinking policies.