2025-09-24 06:58
COPENHAGEN, Sept 24 (Reuters) - Denmark's central bank on Wednesday cut its GDP forecasts for 2025-2027, citing a negative impact from U.S. trade tariffs and weaker growth in the pharmaceuticals industry, where weight-loss drug maker Novo Nordisk (NOVOb.CO) , opens new tab has seen rising competition. It now sees gross domestic product growing by 2% in both 2025 and 2026 against previous predictions, given in March, of 3.6% and 2.3%, respectively. It cut the GDP outlook for 2027 to 1.7% growth from 2%. Sign up here. "Higher tariffs in the U.S. reduce global trade, which will dampen growth in the Danish economy," Nationalbanken said in a statement. "Growth in the Danish pharmaceutical industry is also expected to be lower than in previous years," it added. Novo Nordisk, the maker of blockbuster drug Wegovy has had a miserable year with stalling sales growth, profit warnings and a $400 billion share price plunge that triggered layoffs of some 9,000 people, more than half of them in Denmark. https://www.reuters.com/business/finance/denmarks-central-bank-cuts-growth-outlook-citing-us-tariffs-pharmaceuticals-2025-09-24/
2025-09-24 06:48
Ukraine intensifies strikes as peace talks stall Same complex hit last week, Ufa refinery targeted this month Salavat produces fuels, plastics, ammonia MOSCOW, Sept 24 (Reuters) - The Salavat petrochemical complex, one of Russia's largest which is located in Bashkortostan region, was attacked by Ukrainian drones, the local governor said on Wednesday via his channel on Telegram, the second such attack in less than a week. "Gazprom Neftekhim Salavat has been subjected to another terrorist drone attack. We are assessing the extent of the damage. All emergency services are on scene, and firefighting measures are underway," Radiy Khabirov said. Sign up here. The drones also attacked the same complex, controlled by energy giant Gazprom (GAZP.MM) , opens new tab, last week. Ukraine has intensified drone attacks on Russia's vast oil and gas infrastructure in the past weeks, targeting refineries and export-bound pipelines, as peace talks with Moscow have stalled. Russia is seeing shortages of certain fuel grades as the attacks have reduced refinery runs, and as high borrowing costs mean private filling stations cannot afford to stockpile fuel, according to traders and retailers. Ukrainian drones earlier this month also hit an oil refinery in Ufa, Bashkortostan's regional capital, about 1,400 kilometres (870 miles) from the Ukrainian border. The Salavat petrochemical complex produces gasoline, diesel, kerosene and other petroleum products as well as liquefied gases, butyl alcohols, polyethylene, polystyrene and ammonia. https://www.reuters.com/business/energy/ukraines-drones-again-attack-russias-major-petrochemical-complex-2025-09-24/
2025-09-24 06:39
KOLKATA, Sept 24 (Reuters) - At least 12 people died as heavy rain lashed the eastern Indian city of Kolkata and surrounding areas ahead of a major festival, flooding streets, disrupting transport and leaving residents stranded for hours, officials said on Wednesday. Most of the rain, as much as 251.6 mm (9.9 inches) in 24 hours, fell during the early hours of Tuesday and was the heaviest witnessed in the city since 1988, said HR Biswas, the regional head of India Meteorological Department (IMD) in Kolkata. Sign up here. Police said nine people died in Kolkata, with most of the deaths due to electrocution. Two people drowned, they added. The rains brought the state capital to a standstill, seriously hampering preparations for the upcoming Durga Puja - the biggest annual festival of Hindus in West Bengal state. Many pandals, temporary structures built with bamboo and other material for the festival, and clay idols of the deities also suffered damage across the city. Roads were submerged under waist-deep water in some areas, stranding vehicles and forcing commuters to wade through flooded streets. Road, train, and air traffic were severely disrupted, with several flights and trains cancelled or delayed. Power outages affected multiple areas for hours, compounding residents' difficulties. "I got stranded in my hotel as my flight got cancelled and the roads were all waterlogged," said Ranjan Panda, a water and climate expert. Authorities said they have deployed water pumps to clear streets and railway tracks, with relief measures, including food distribution and emergency services, underway. The IMD predicted more rain in the state and eastern India over the next few days due to the formation of a low-pressure area over Bay of Bengal. The state government declared schools and other educational institutions closed on Wednesday and Thursday before the holidays for the festival take effect from Friday. Officials said conditions will normalize by Wednesday evening while urging residents to remain cautious as water levels gradually recede in low-lying areas. "This should not have happened after four hours of rain. West Bengal is not in a good condition," Sandip Ghosh, a local resident in Kolkata, told Indian news agency ANI, in which Reuters has a minority stake. https://www.reuters.com/business/environment/least-12-dead-record-rain-floods-indias-kolkata-2025-09-24/
2025-09-24 06:37
Proposal would raise VAT to 22% from 20% Additional revenues estimated at $14.3 billion Putin signalled last week he was open to raising certain taxes Trump says Russia in 'big economic trouble' in Truth Social post MOSCOW, Sept 24 (Reuters) - Russia's finance ministry proposed raising the rate of value-added tax on Wednesday to 22% from 20% in 2026 to fund military spending and help curb a swelling budget deficit, in what would be the fifth year of the war in Ukraine. The proposal comes as U.S. President Donald Trump called Russia a "paper tiger" for "fighting aimlessly for three-and-a-half years" and said that Russia was in "big economic trouble". Sign up here. President Vladimir Putin signalled last week that he was open to raising certain taxes during the war, noting that the U.S. had raised taxes on wealthy people during the Vietnam and Korean wars. The government on Wednesday approved a new draft budget for 2026, called by some Kremlin officials a "wartime budget", and announced updated figures for 2025, with economic growth expected to plummet to 1% from 4.3% last year. National defence spending will fall to 12.6 trillion roubles ($150.5 billion) in 2026 from a post-Soviet high of 13.5 trillion in 2025, finance ministry documents showed. In 2025, the deficit is seen at 2.6% of national output, the highest since the start of the war, according to the documents reviewed by Reuters, exceeding the previous target by 53%. TAX HIKE PRIMARILY TO FUND 'DEFENCE AND SECURITY' The proposal is in line with a Reuters report last week. VAT, a consumption tax seen as easy to administer, accounted for 37% of budget revenues in 2024. Alexander Shokhin, head of a major business lobby, called the hike "unpleasant". The ministry estimated that the increase would generate about 1.2 trillion roubles ($14.33 billion) in additional revenue in 2026. The government also plans to increase borrowing by 46% in 2025. The finance ministry said the tax hikes would be "aimed primarily at financing defence and security". It proposed other tax increases, including on gambling businesses, and the elimination of tax breaks on small businesses. The proposal will spur inflation, which has been receding in recent months, and make more key rate cuts more difficult for the central bank, which said it will take into account the effects of the VAT increase on inflation expectations. A two percentage point 2019 VAT hike contributed 0.6 percentage points to inflation that year, according to the central bank, which has pledged to halve it from current levels and return it to its 4% target in 2026. T-Bank analyst Sofya Donets estimated that in 2026 the tax hike would boost inflation by 1.5 percentage points, making the central bank's job more difficult as it navigates between worsening inflation and a further economic slowdown. The rouble was little changed at 83.75 to the U.S. dollar on Wednesday, with analysts saying that a slower pace of key rate cuts supported the Russian currency. The average rouble rate is seen at 92.2 to the dollar in 2026 in the new forecast, about 8% stronger than in the previous one. After meeting Ukrainian President Volodymyr Zelenskiy on the sidelines of the U.N. General Assembly in New York, Trump posted on his Truth Social platform: "Putin and Russia are in BIG Economic trouble, and this is the time for Ukraine to act." Trump's tone was in stark contrast to his red-carpet treatment for Putin at a summit in Alaska last month, part of an ostensible push to expedite an end to the war. 'NO SUCH THING AS A PAPER BEAR' Kremlin spokesman Dmitry Peskov told RBC radio on Wednesday the Russian economy had adapted to the conflict in Ukraine. Brushing off Trump's "paper tiger" comment, Peskov said Russia was a bear, not a tiger, and "there is no such thing as a paper bear", while adding Putin valued Trump's efforts to resolve the conflict. The finance ministry said the draft 2026 budget was "balanced and sustainable" while providing "financial support for the country's defence and security needs". "The resources planned in the budget will make it possible to equip the armed forces with the necessary weapons and military equipment, pay salaries to military personnel and support their families, and modernise defence industry enterprises," it said in a statement. ($1 = 83.7500 roubles) ($1 = 83.7455 roubles) https://www.reuters.com/markets/currencies/russian-finance-ministry-proposes-raising-vat-help-finance-war-ukraine-2025-09-24/
2025-09-24 06:37
Fed's Powell treads tightrope on future rate cuts Trump says Ukraine can recover all lost territory Silver hovers near 14-year highs Sept 24 (Reuters) - Gold prices steadied on Wednesday, trading near the record high hit the day before, as expectations of further U.S. interest rate cuts and geopolitical uncertainty boosted demand for the safe-haven metal. Spot gold was steady at $3,762.73 per ounce, as of 1103 GMT, after hitting a record high of $3,790.82 on Tuesday. Sign up here. U.S. gold futures for December delivery edged down 0.5% to $3,795.80. The dollar index (.DXY) , opens new tab, which measures the greenback against a basket of major currencies, rose about 0.5%, making dollar-priced bullion more expensive for other currency holders. "The rally is being fuelled by lower U.S. funding costs alongside a cocktail of investor concerns spanning overvalued equities, Fed independence, and mounting geopolitical risks," said Ole Hansen, head of commodity strategy at Saxo Bank. Powell said that the Fed would continue to balance concerns over labour market weakness with worries about inflation, while central bank officials took stances on both sides of the monetary policy path divide. Investors are now looking ahead to the U.S. Personal Consumption Expenditures index, the Fed's preferred inflation gauge, on Friday for further cues on potential rate cuts. Market participants are pricing in two more 25-basis-point cuts this year, one each in October and December, with 94% and 77% probability, respectively, the CME FedWatch tool , opens new tab shows. Gold, considered a safe-haven asset during times of uncertainty, tends to perform well in a low interest rate environment. Elsewhere, NATO warned Russia on Tuesday that it would use "all necessary military and non-military tools" to defend itself, as U.S. President Donald Trump shifted rhetoric by asserting that Ukraine could recover all territory occupied by Russia. "With geopolitical turbulence and economic uncertainty driving safe-haven demand, alongside growing expectations of a dovish Fed, gold (should) consolidate above $3,750 in the short term, with the prospect of a new resistance around $3,900," said Ricardo Evangelista, senior analyst at ActivTrades. Spot silver fell 0.3% to $44.89 per ounce. Platinum fell 0.7% to $1,467.39 and palladium lost 0.1% to $1,218.61. https://www.reuters.com/world/india/gold-eases-record-high-investors-book-profits-weigh-powells-comments-2025-09-24/
2025-09-24 06:29
NEW DELHI, Sept 24 (Reuters) - India's Oil and Natural Gas Corp (ONGC.NS) , opens new tab hopes to acquire 2.5-3 gigawatt renewable energy projects by 2030, Executive Director Satyan Kumar said on Wednesday. The company already has about 2.5 GW of renewable energy capacity, Kumar told reporters. Sign up here. ONGC is looking to import 3 million ton per year of liquefied natural gas under long-term deals and expects some contracts to be finalised in 12 months, he added. https://www.reuters.com/sustainability/climate-energy/indias-ongc-eyes-acquisition-25-3-gw-renewable-energy-projects-exec-says-2025-09-24/
