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By Nick Carey and Christina Amann LONDON/BERLIN (Reuters) -Global automakers are scouring the globe for crucial rare earths ahead of looming Chinese export controls, with executives worried they could lead to parts shortages and plant closures. Rare earth magnets power motors in car parts such as side mirrors, speakers, oil pumps, windshield wipers and fuel leakage and braking sensors. They play an even bigger role in EVs. While a U.S.-China deal diverted a supply threat, stockpiles were depleted by similar restrictions earlier this year, while Beijing has also made it harder to get export licenses. China has since dramatically expanded export curbs, with companies facing global supply shortages. Consultancy AlixPartners estimates China controls up to 70% of global rare-earths mining, 85% of refining capacity and about 90% of rare-earths metal alloy and magnet production.  The new Chinese export control list includes elements like ytterbium, holmium and europium, also used in making cars. "The situation is very tense," said Nadine Rajner, CEO of German metal-powder supplier NMD, adding customers want to source rare earths from anywhere but China. Rajner said that while there are plenty of rare earths available in countries like Sweden, they do not have the mines or refining capacity to make them usable. And for heavy rare earths, China controls 99.8% of global refining capacity, making alternative sources negligible. "We are pretty much sold out and have limited stocks," Rajner said.  Rare earths can be recycled from old cars, but that industry is in its infancy. Neutral, a Renault-backed company, currently recycles rare earths from 400,000 cars a year in France and has contracts with 15 brands in Europe. But "the challenge is scaling up these activities," said Neutral CEO Jean-Philippe Bahuaud.     'ALREADY BEEN DEPLETED' Even if Chinese suppliers can fulfil fresh orders before the November 8 export controls take effect, the journey by sea to Europe can take 45 days and the threat of a rare earth bottleneck is among several headaches facing the auto industry. China has also placed export restrictions on lithium-ion batteries and battery materials, triggering concerns over parts supplies for electric vehicles. And last week, an intellectual-property dispute between China and the Netherlands involving little-known Dutch chip-maker Nexperia, sparked fears of factory closures because it supplies a large amount of chips car parts and components. Automakers also face the challenge of U.S. tariffs and are expected to detail the costs in their third-quarter earnings.  But China's hold over the industry through its control of rare earths ranks among the thorniest problems. "They can shut us down in two months, the entire auto industry," said Ryan Grimm, Toyota Motor's North America group vice president of purchasing supplier development. Bruno Gahery, president for France, Benelux, West and South Europe at supplier Bosch, said he expected the autos industry to "overstock rare earths" ahead of the deadline. But an executive at a magnet supplier for Hyundai said that while it built inventories earlier this year, "most have already been depleted" and supplies are tight. Some Chinese rare earths exporters received a rush of orders from overseas clients immediately after new export controls were announced on October 9, three industry sources told Reuters. RARE EARTH FREE MOTORS  Automakers are taking steps to reduce their reliance. Some such as General Motors and major suppliers such as ZF and BorgWarner are developing EV motors with low-to-zero rare-earth content, while BMW and Renault have produced rare earth-free motors.  Monumo has used AI and deep-tech simulation to help clients cut rare earth content in motors already in production, which CEO Dominic Vergine said has led to an average reduction of 24% among the UK firm's customers, which include several of the world's top 10 carmakers, he said.  Automakers are also pushing hard to improve rare earth-free motors for the next generation of EVs. Yet most of those motors are years away, as are efforts to develop new rare earth mines and processing plants outside China, which Beijing can undermine by keeping prices low, industry experts say.  Experts say the U.S government is taking the threat far more seriously than Europe. Andy Leyland, co-founder of supply chain specialist SC Insights, said Beijing has focused on beating others on price and will continue to do so. "The Chinese can always undercut them," he said of efforts to develop rare-earth free motors, adding that faced with cheaper motors with rare earth magnets automakers may find it hard to justify more expensive components.  "So it's a really risky investment."  Meanwhile, China is expected to keep exerting its power over supplies of rare earths. "This is not the end of export controls," said Jan Giese, a senior manager at rare-earth trader Tradium.  (Reporting by Nick Carey and Christina Amann; additional reporting by Gilles Guillaume in Paris and Beijing Newsroom; editing by Mike Colias and Alexander Smith)

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By Ashitha Shivaprasad and Sam Li (Reuters) -Oil prices fell for a second day on Tuesday as concerns about excess supply and risks to demand stemming from tensions between the U.S. and China, the world's top two oil consumers, weigh on the market. Brent crude futures fell 17 cents, or 0.28%, at $60.84 a barrel at 0343 GMT. The U.S. West Texas Intermediate crude (WTI) contract for November delivery, set to expire on Tuesday, eased 0.52% to $57.22. The more active December contract was down 19 cents, or 0.33%, at $56.83. Prices declined to their lowest since early May in Monday's session on the concerns about slowing economic growth from the recent escalations in the U.S.-China trade dispute. Both WTI and Brent have shifted to contango market structures, where prices for immediate supply are lower than for later delivery and which typically indicates that near-term supply is abundant and demand weakening. Prices have slumped as the Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, known as OPEC+, have pushed ahead with plans to add more oil to the market. This has led analysts to predict a surplus of crude this year and next, with the International Energy Agency last week projecting a global surplus of nearly 4 million barrels per day in 2026. "The continued weakening of Brent's monthly spread structure indicates that the pressure from oversupply in the crude oil market is gradually materializing," analysts from China's Haitong Securities said in a note on Tuesday. "This will dampen market expectations and curb investors' willingness to chase gains, limiting the potential for oil prices to rebound." The current pessimistic outlook for oil is likely to extend into 2026, with analysts at Goldman Sachs saying on Tuesday they forecast Brent prices may drop to $52 a barrel by the fourth quarter of next year. The Goldman analysts attributed the past week's slump in Brent prices to indications "the long-anticipated global surplus has started to show" in satellite data on global oil stockpiles and inventory data from the IEA and the Energy Information Administration in the U.S. Expectations are that U.S. crude oil stockpiles likely rose last week, a preliminary Reuters poll on Monday showed, ahead of weekly reports from the American Petroleum Institute and the EIA. [EIA/S] (Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Sonali Paul and Christian Schmollinger)

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A look at the day ahead in European and global markets from Ankur Banerjee And just like that, worries about credit risks are in the rear view. Investors are feeling perky, betting that tensions between the U.S. and China will ease, the Fed will cut rates next week and the earnings season will be strong. That – let's call it optimism – has pushed stocks across Asia-Pacific to record peaks, with Japan's Nikkei just shy of a landmark 50,000 points. Tech-heavy Taiwan and South Korea stocks have also hit record highs after strong overnight gains from U.S. tech shares led by Apple. Hardline conservative Sanae Takaichi is set to be voted in as Japan's first female prime minister later on Tuesday and her appointment continues to push Japanese shares higher on hopes that her pro-stimulus plans will be good for equities. An acolyte of former Prime Minister Shinzo Abe, Takaichi is expected to appoint another Abe protege, Satsuki Katayama, to the post of finance chief, local media reported. That may be bad news for yen bears as Katayama has suggested the yen's real value is closer to 120-130 per dollar. The yen was last at 151.07. Over in Europe, the economic calendar is pretty bare and that could be a good thing for risk assets as they take cues from the prospect of the Federal Reserve lowering rates. Traders are ascribing a 98.3% chance of a 25 basis point cut next week. Meanwhile, investors are also taking comfort from the latest comments from U.S. President Donald Trump on China. Trump said he expects to reach a fair trade deal with Chinese President Xi Jinping as he gears up for a planned meeting with Xi on the sidelines of an economic conference in South Korea next week. Next week is shaping up to be news heavy with the spotlight on central bank meetings in the U.S. and Japan as well as the meeting between Trump and Xi. With earnings season in full stride, traders will not only keep an eye on big bellwethers but also parse through reports from regional banks after a turbulent last week where worries over rising credit risk hit sentiment. Some of the firms reported earnings on Monday with investors relatively comforted by the results. Key developments that could influence markets on Tuesday: Earnings: Unicredit, L'Oreal (By Ankur Banerjee in Singapore; Editing by Sam Holmes)

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By Leika Kihara and Makiko Yamazaki TOKYO (Reuters) -The possible appointment of Satsuki Katayama as Japan's next finance minister could give markets cause to rethink pushing the yen too low but might also help the country's new leader find fresh ways to fund bold economic stimulus plans. Japan's next likely prime minister Sanae Takaichi has finalised a plan to appoint Katayama as finance minister, local media reported on Tuesday, which would make her the first woman to hold the role. The report briefly pushed the dollar to around 150.50 yen, before recouping some losses. In an interview with Reuters in March, Katayama, a 66-year-old veteran upper house lawmaker and former finance minister bureaucrat, said Japan's economic fundamentals suggest the yen's real value is closer to 120-130 per dollar. Those comments were made when the yen's slide to multi-decade lows around 150 to the dollar on market expectations that the Bank of Japan will go slow on monetary tightening. The yen is currently trading around 151 per dollar. "Given her past remarks, it seems Katayama favours reversing a weak yen. Markets may have seen that as similar to the views of U.S. Treasury Secretary Scott Bessent," said Akira Moroga, chief market strategist at Aozora Bank. Katayama declined to comment on Tuesday. Takaichi is set to be voted in as Japan's first female prime minister on Tuesday, marking a symbolic shattering of the glass ceiling in a country where men still wield most power. OUTSPOKEN, DECISIVE, MINISTRY INSIDER A former finance ministry bureaucrat well-versed in fiscal affairs, Katayama has a knack for currency diplomacy, and befriends former and incumbent executives at the ministry overseeing exchange-rate policy. She is known for being outspoken and her punchy decision-making, which contrasts with incumbent finance minister Katsunobu Kato, who rarely goes off script and keeps a low profile. In the March interview, Katayama had said U.S. President Donald Trump's administration did not want excessive yen weakness versus the dollar. Indeed, Bessent said last week the yen would find its own level if the central bank follows "proper monetary policy" in his latest swipe at the slow pace of BOJ rate hikes. The appointment of Katayama would come at a time of rising living costs, blamed in part on higher import prices caused by a weak yen. Those factors have hurt households and the ruling party's approval ratings. As a former bureaucrat, Katayama knows well the inner workings of the finance ministry's budget drafting. While her background at the finance ministry could prod her to call for fiscal discipline, some analysts say she could use her expertise to help Takaichi find ways to fund her bold spending plans. "I'm not sure whether Katayama is an advocate of expansionary fiscal policy, but her views deep down probably align with those of Takaichi," said Hiroyuki Machida, director of Japan FX and commodities sales at ANZ. "She'll know how to find sources of revenue if Takaichi wants to expand fiscal spending," he said. "Personally, I think this appointment will accelerate 'Takaichi-trade'." The challenge for Takaichi would be to pursue expansionary fiscal policy without causing an unwelcome slide in the yen. It is unknown whether she will nod to the BOJ's plan to gradually raise interest rates from current levels at 0.5%. In the March interview, Katayama said there were limits to what monetary policy or currency intervention could do to tame yen falls, calling instead for steps to boost fundamental growth. Markets will be focused on Katayama's views on whether the BOJ should proceed with raising still-low interest rates, which could increase Japan's debt-servicing costs but help keep sharp yen falls in check. "Katayama is a former finance minister bureaucrat and so well informed on the ministry's affairs," said Eiji Douke, chief fixed income strategist of SBI Securities. "She's likely neutral on fiscal and monetary policy." (Reporting by Leika Kihara and Makiko Yamazaki; Additional reporting by Yoshifumi Takemoto; Editing by Sam Holmes)

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By Leika Kihara and Makiko Yamazaki TOKYO (Reuters) -The possible appointment of Satsuki Katayama as Japan's next finance minister could give markets cause to rethink pushing the yen too low but might also help the country's new leader find fresh ways to fund bold economic stimulus plans. Japan's next likely prime minister Sanae Takaichi has finalised a plan to appoint Katayama as finance minister, local media reported on Tuesday, which would make her the first woman to hold the role. The report briefly pushed the dollar to around 150.50 yen, before recouping some losses. In an interview with Reuters in March, Katayama, a 66-year-old veteran upper house lawmaker and former finance minister bureaucrat, said Japan's economic fundamentals suggest the yen's real value is closer to 120-130 per dollar. Those comments were made when the yen's slide to multi-decade lows around 150 to the dollar on market expectations that the Bank of Japan will go slow on monetary tightening. The yen is currently trading around 151 per dollar. "Given her past remarks, it seems Katayama favours reversing a weak yen. Markets may have seen that as similar to the views of U.S. Treasury Secretary Scott Bessent," said Akira Moroga, chief market strategist at Aozora Bank. Katayama declined to comment on Tuesday. Takaichi is set to be voted in as Japan's first female prime minister on Tuesday, marking a symbolic shattering of the glass ceiling in a country where men still wield most power. OUTSPOKEN, DECISIVE, MINISTRY INSIDER A former finance ministry bureaucrat well-versed in fiscal affairs, Katayama has a knack for currency diplomacy, and befriends former and incumbent executives at the ministry overseeing exchange-rate policy. She is known for being outspoken and her punchy decision-making, which contrasts with incumbent finance minister Katsunobu Kato, who rarely goes off script and keeps a low profile. In the March interview, Katayama had said U.S. President Donald Trump's administration did not want excessive yen weakness versus the dollar. Indeed, Bessent said last week the yen would find its own level if the central bank follows "proper monetary policy" in his latest swipe at the slow pace of BOJ rate hikes. The appointment of Katayama would come at a time of rising living costs, blamed in part on higher import prices caused by a weak yen. Those factors have hurt households and the ruling party's approval ratings. As a former bureaucrat, Katayama knows well the inner workings of the finance ministry's budget drafting. While her background at the finance ministry could prod her to call for fiscal discipline, some analysts say she could use her expertise to help Takaichi find ways to fund her bold spending plans. "I'm not sure whether Katayama is an advocate of expansionary fiscal policy, but her views deep down probably align with those of Takaichi," said Hiroyuki Machida, director of Japan FX and commodities sales at ANZ. "She'll know how to find sources of revenue if Takaichi wants to expand fiscal spending," he said. "Personally, I think this appointment will accelerate 'Takaichi-trade'." The challenge for Takaichi would be to pursue expansionary fiscal policy without causing an unwelcome slide in the yen. It is unknown whether she will nod to the BOJ's plan to gradually raise interest rates from current levels at 0.5%. In the March interview, Katayama said there were limits to what monetary policy or currency intervention could do to tame yen falls, calling instead for steps to boost fundamental growth. Markets will be focused on Katayama's views on whether the BOJ should proceed with raising still-low interest rates, which could increase Japan's debt-servicing costs but help keep sharp yen falls in check. "Katayama is a former finance minister bureaucrat and so well informed on the ministry's affairs," said Eiji Douke, chief fixed income strategist of SBI Securities. "She's likely neutral on fiscal and monetary policy." (Reporting by Leika Kihara and Makiko Yamazaki; Additional reporting by Yoshifumi Takemoto; Editing by Sam Holmes)

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By Pritam Biswas (Reuters) -Zions Bancorp reported a rise in third-quarter profit on Monday, helped by stronger interest income and despite taking a hefty loss on two loans, sending shares of the bank up 2% in after-market trading. Zions disclosed last week that it would take a $50 million loss in the third quarter on two commercial and industrial loans from its California division.  The statement from the bank, combined with separate disclosures from Western Alliance and Jefferies about a fraud lawsuit involving Cantor Group V and exposure to bankrupt auto parts maker First Brands, respectively, led to a decline in banks' shares on Thursday as investor concerns over lending intensified. LOAN LOSSES AN ISOLATED INCIDENT "We are confident this was an isolated incident in our portfolio," Zions Chief Credit Officer Derek Steward said in an analyst call. CEO Harris Simmons said in a statement that excluding the loss "remaining net charge-offs were very benign at $6 million, or 4 basis points of average loans on an annualized basis." U.S. bank shares rebounded on Friday, recovering some of the sharp losses from the previous day and easing jitters around the sector. "Third-quarter earnings results for several U.S. regional banks did not show outsized or unexpected credit losses, and management teams are providing a reassuring outlook for the fourth quarter," Terry McEvoy, analyst at Stephens, said. "Such trends support the idea that the stress at a handful of companies is more of a one-off than an emerging trend." Broader loan growth has helped banks rake in more from interest income. Net interest income – the difference between what banks earn on loans and pay on deposits – rose to $672 million from $620 million in the year-ago quarter. Net income applicable to the bank's shareholders was $221 million, or $1.48 per share, in the three months ended September 30, compared with $204 million, or $1.37 per share, a year earlier.    (Reporting by Pritam Biswas in Bengaluru; Editing by Alan Barona and Lincoln Feast.)

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