2025-09-01 10:32
LONDON, Sept 1 (Reuters) - Yemen's Houthis said on Monday they launched a missile towards the Israeli-owned tanker Scarlet Ray near Saudi Arabia's Red Sea port city of Yanbu in a rare attack off the Saudi coast. The Liberia-flagged vessel's Singapore-based manager, Eastern Pacific Shipping, owned by Israeli magnate Idan Ofer, said the chemical tanker was undamaged and under the command of its captain. Sign up here. "We are aware of security reports alleging that our managed vessel Scarlet Ray was the target of a suspected Houthi attack," Eastern Pacific said in a statement on Monday, adding that all crew members were safe and accounted for. Britain's maritime agency UKMTO said on Sunday it had received a report of an incident from a captain who witnessed "a splash in close proximity to their vessel from an unknown projectile and heard a loud bang" 40 nautical miles southwest of Yanbu. UKMTO did not identify the party responsible, but said authorities were investigating. The Iran-aligned Houthis have launched multiple attacks on vessels in the Red Sea since 2023 that they deem to be linked with Israel in what they say is solidarity with Palestinians in the war in Gaza. Attacks near Saudi Arabia’s Red Sea coast, which is further north, have been rare in recent years. Any Houthi targeting of vessels along this coast will raise alarm as crucial energy exports are transported to global markets from Saudi terminals. "While … the projectile did not impact the vessel, the strike demonstrates a clear show of strength," said Ellie Shafik, head of intelligence with UK-based maritime risk management company Vanguard Tech. "It is too early to determine whether this represents a broader strategy of escalation, or is a one-off response to the Israeli targeting of Houthi ministers. However, Saudi Arabia is unlikely to tolerate repeated strikes occurring so close to its … territory." The prime minister of Yemen's Houthi-run government and several other ministers were killed in an Israeli strike on the capital Sanaa, the head of the Houthi Supreme Political Council said on Saturday, in the first such attack to kill senior officials. Saudi Arabia led a coalition that launched a military campaign in Yemen from early 2015 to support the Gulf-backed government against the Houthis, who had seized the capital Sanaa in 2014. The coalition has in the past foiled attempted assaults using explosive-laden boats it says were launched by the Houthis. https://www.reuters.com/world/middle-east/houthis-say-they-launched-missile-israeli-linked-tanker-near-saudi-arabias-yanbu-2025-09-01/
2025-09-01 10:26
Russian drones knock out Ukraine power facilities Zelenskiy vows more strikes deep inside Russia OPEC+ due to meet on September 7 LONDON, Sept 1 (Reuters) - Oil prices rose 1% on Monday on worries over supply disruptions stemming from intensified Russia-Ukraine airstrikes as well as a weaker dollar. Brent crude was up 62 cents, or 0.9%, at $68.10 a barrel by 1019 GMT. U.S. West Texas Intermediate crude gained 65 cents, or 1%, to $64.66. Trading is expected to be muted because of a U.S. public holiday. Sign up here. Brent and WTI crude registered their first monthly declines in four months in August, losing 6% or more on increased supply from the OPEC+ producer group. "Crude fell in August and has started September with no clear direction within established ranges as fears of a fourth-quarter supply glut are offset by geopolitical tensions," said Ole Hansen, head of commodity strategy at Saxo Bank. Investors were focused on Beijing, where Chinese President Xi Jinping, Russian counterpart Vladimir Putin and Indian Prime Minister Narendra Modi are attending a regional summit. Also on the radar was OPEC+ meeting on September 7, Hansen added. Markets remain concerned about Russian oil flows, with weekly shipments from its ports dropping to a four-week low of 2.72 million barrels per day (bpd), according to tanker tracker data cited by ANZ analysts. Ukrainian President Volodymyr Zelenskiy vowed on Sunday to retaliate with more strikes deep inside Russia after Russian drone attacks on power facilities in northern and southern Ukraine. Both countries have intensified airstrikes in recent weeks, targeting energy infrastructure and disrupting Russian oil exports. A Reuters poll on Friday showed that oil prices are unlikely to gain much from current levels this year, as rising output from top producers adds to the risk of a surplus and U.S. tariff threats weigh on demand growth. Coming out of the summer season, oil inventories should rise in the last quarter of 2025 and the first quarter of 2026, HSBC analysts said in a note, with a surplus of 1.6 million barrels per day in the fourth quarter. Elsewhere, the U.S. labour market report this week will give a read on the economy's health and test investor confidence that interest rate cuts are coming soon, a view that has strengthened appetite for riskier assets such as commodities. Ahead of the data, the dollar was close to a five-week low on Monday, making oil less expensive for buyers using other currencies. https://www.reuters.com/business/energy/oil-rises-weaker-dollar-russia-supply-disruptions-2025-09-01/
2025-09-01 10:06
MOSCOW, Sept 1 (Reuters) - Russian President Vladimir Putin on Monday proposed that members of the 10-nation Shanghai Cooperation Organisation (SCO) should sell joint bonds, a step that would mark a major deepening of their economic cooperation. At a summit of the group in China, Putin also floated the idea of a joint payments system for trade settlements. Sign up here. The SCO, set up in 2001, is the successor to the Shanghai Five, a grouping of China, Russia, Kazakhstan, Kyrgyzstan and Tajikistan, set up in 1996. It now also includes India, Pakistan, Iran, Belarus and Uzbekistan. "We advocate the issuance of joint bonds of member states," Putin told SCO heads of state in China's northern port city of Tianjin. He also said he supported "the creation of our own payment, settlement and depository infrastructure" and "the formation of a bank of joint investment projects". "All this will increase the effectiveness of our economic exchanges and protect them from fluctuations in the external environment," Putin said. Russia has been pushing for settlement mechanisms which avoid the U.S. dollar and the euro, after Western sanctions on payment systems and Chinese banks disrupted Russian trade following the 2022 invasion of Ukraine. Putin said the SCO economies had grown on average by 5% in 2024. https://www.reuters.com/business/finance/putin-proposes-shanghai-cooperation-organisation-members-should-issue-joint-2025-09-01/
2025-09-01 09:44
Sept 1 (Reuters) - Sterling rose against a weakening dollar on Monday but was on track for a 3-day falling streak versus the euro, as investors awaited U.S. economic data later this week amid renewed concerns over Britain’s fiscal outlook. Weakness in the pound has coincided with a decline in British bank shares and an uptick in benchmark Gilt yields on Friday. Sign up here. "The UK is in a fiscal bind," said Stephen Jen, CEO of Eurizon Capital, recalling that the 30-year gilts yields were around their highest levels since the late-1990s while fiscal spending remains at a Maastricht-busting level of 4.4% of gross domestic product. "In our view, its fiscal revenues are about to move to the bad side of the Laffer Curve, higher tax rates will probably start to lead to lower tax collection," he added. The yield on the 30-year gilt hit 5.646% on Monday. It reached 5.649% in early April, its highest since 1998. The pound was up 0.18% to $1.3528 and was down 0.14% to 86.65 pence per euro . The greenback hit a 5-week low on Monday as investors looked ahead to a raft of U.S. labour market data this week that could affect expectations for the Federal Reserve's easing path. Investors will closely watch the questioning of Bank of England Monetary Policy Committee members by the Treasury Committee later this week, looking for guidance on future rate cuts or possible changes to the central bank’s quantitative tightening program. Parliament returns from its summer recess this week, and an announcement on the date of the Autumn Budget could follow. “If the UK government wants the Bank of England to be able to react, by cutting rates, to a fiscally tight budget, it will have to announce the budget date this week,” said Chris Turner, head of forex strategy at ING, recalling that the Office for Budget Responsibility requires 10 weeks' notice for the budget, and the November BoE meeting is held on the 6th. (This story has been corrected to say 30-year gilt yields were near their highest levels since the late 1990s, not hit that milestone on Monday, in paragraphs 3 and 5) https://www.reuters.com/world/uk/sterling-track-three-day-slide-versus-euro-amid-fiscal-concerns-2025-09-01/
2025-09-01 08:56
LONDON, Sept 1 (Reuters) - British lenders approved the most mortgages in July since January, according to Bank of England data published on Monday that added to signs of a stabilisation in the housing market after volatility caused by the end of a tax break. Banks and building societies signed off on 65,352 mortgages during the month, more than the median forecast of 64,400 in a Reuters poll of economists. Sign up here. The housing market dipped immediately after the expiry of a tax break for some homebuyers in April and appears to have largely settled since then. However, figures published earlier on Monday by the Nationwide Building Society showed an unexpected fall in house prices in August as buyers struggled to afford high valuations. The BoE data also showed stronger-than-expected increases in mortgage and consumer borrowing during July. Consumer borrowing rose by 7.0% in the 12 months to July, the biggest such increase since the 12 months to October 2024. https://www.reuters.com/world/uk/uk-lenders-approved-most-mortgages-six-months-july-2025-09-01/
2025-09-01 08:45
MUMBAI, Sept 1 (Reuters) - The Indian rupee dropped to a record low against the U.S. dollar on Monday, reflecting mounting concerns over the higher U.S. tariffs on Indian goods and the broader economic implications for the South Asian country. The rupee declined to 88.33 to the U.S. dollar, dipping past the 88.3075 lifetime low hit in the previous session. The Reserve Bank of India stepped in on Friday to support the rupee, yet letting it breach 88 caught most market participants off guard. Sign up here. "Unless we see some improvement in trade relations between India and the U.S., we cannot expect any stability in the rupee, and we could see test of fresh lows frequently," said VRC Reddy, treasury head at Karur Vysya Bank. "Everything now depends upon the RBI, on how they plan to manage the markets," Reddy said. The RBI has a track record of stepping in to curb excessive rupee volatility, particularly during periods of heightened uncertainty or rampant speculative activity. While the RBI has repeatedly emphasized that it does not target a specific exchange rate, its actions are closely monitored and can significantly influence short-term rupee dynamics. HEFTY US TARIFFS The U.S. last week raised tariffs on Indian products by 25%, bringing the country’s total duty burden to 50%. Higher tariffs are expected to dent India's export competitiveness, particularly in sectors such as textiles and engineering goods. A slowdown in exports could weigh on corporate revenues and profits, potentially affecting hiring and investment decisions. With the tariffs increasing uncertainty over corporate earnings and India's broader growth outlook, foreign portfolio investors may reconsider allocations to Indian equities. Over the past three sessions, foreign investors pulled $2.4 billion from Indian equities. With exports expected to slow, the trade deficit is likely to widen, putting pressure on the current account. The country may have to rely more on capital inflows, which have already been weak and could remain under pressure amid the uncertain backdrop. https://www.reuters.com/world/india/india-rupee-hits-all-time-low-us-tariff-strain-rbi-under-lens-2025-09-01/
