2025-08-12 07:35
Data points to cooling of labour market, ONS says Payrolled employees fall for 6th month in a row But drop in payrolls is weaker than in previous months Sterling edges up, investors pare bets on BoE rate cut LONDON, Aug 12 (Reuters) - Britain's jobs market has weakened again, official data showed, with payrolls falling for a sixth month and vacancies dropping further, but wage growth stayed strong, underscoring why the Bank of England is so cautious about cutting interest rates. With the central bank's policymakers split over the risks of a hiring slump and a pickup in inflation pressures, the Office for National Statistics' figures pointed to a continued cooling of the labour market, albeit less sharply than in recent months. Sign up here. The number of employees on company payrolls, as measured by tax office data, fell by a provisional 8,000 in July from June, extending a run of declines that began in February but the smallest decline in that run. The reduction in June was revised down to 26,000, fewer than the originally reported fall of 41,000. Employers have said finance minister Rachel Reeves' decision to raise a tax on them is weighing on their staffing and pay decisions, as well as causing an increase in their prices. Basic wage growth in the private sector - watched closely by the BoE - edged down to 4.8% in the three months to June. But overall average weekly earnings, excluding bonuses, grew by 5.0%, unchanged from the three months to May and above the 3% level seen as consistent with the BoE's 2% inflation target. "Today's labour market figures underline the stagflation quandary facing the Monetary Policy Committee," Jack Kennedy, senior economist at job website Indeed, said. "While a further rate cut in November remains on the cards, it's not a done deal with wage growth remaining elevated amid concerns over inflation persistence." The BoE last week cut interest rates to 4% from 4.25%, but only after a tight 5-4 vote by the MPC, which expects headline inflation to hit 4% soon, double its 2% target. Sterling rose slightly after the jobs figures were published and investors trimmed their bets on the possibility of another BoE rate cut this year. They are fully pricing another cut only in February 2026, according to LSEG data. Thomas Pugh, chief economist at tax and consulting firm RSM UK, saw signs that the hit to hiring caused by the tax hike on employers and a sharp increase in the minimum wage was fading. "It looks like the worst of the adjustment to the big increase in labour costs is now behind us, and that the labour market is now stabilising," Pugh said. However, Tuesday's data showed that the number of job vacancies fell by 44,000 in the three months to July to 718,000, the lowest since the three months to April 2021. Britain's unemployment rate in the three months to June held at 4.7%, its highest since the second quarter of 2021, although that figure was based on a survey of households that the ONS is overhauling and has said is not currently reliable. In one positive sign for the BoE and the government, the inactivity rate - which measures people out of work and not looking for a job - fell to its lowest since the start of the coronavirus pandemic at 21%. https://www.reuters.com/sustainability/sustainable-finance-reporting/uk-hiring-falls-wage-growth-stays-high-highlighting-boe-rates-quandary-2025-08-12/
2025-08-12 07:26
JAKARTA, Aug 12 (Reuters) - PT Kilang Pertamina Internasional, the refinery unit of Indonesian state energy company Pertamina, has started its first shipments of sustainable aviation fuel made partly from used cooking oil, the company said on Tuesday. The SAF will be used in a flight from the capital Jakarta to Denpasar, Bali, scheduled for later this month by Pelita Air, an airline subsidiary of Pertamina, the refinery unit said. Sign up here. Around 32 kilolitres of the SAF from its Cilacap refinery have been prepared for the flight. Pertamina plans to deliver 1.7 million litres of the fuel to Soekarno-Hatta airport in Jakarta, the statement said. Pertamina's Cilacap refinery has SAF production capacity of around 1,400 kl per day, with used cooking oil content of 2% to 3%, the company said. https://www.reuters.com/business/energy/indonesias-pertamina-delivers-first-used-cooking-oil-aviation-fuel-2025-08-12/
2025-08-12 07:25
SUAO, Taiwan, Aug 12 (Reuters) - Authorities in Taiwan were scrambling on Tuesday to evacuate hundreds from the likely path of Typhoon Podul, expected to make landfall on the island's southeastern coast, while nearby areas battle to recover from the havoc caused by previous storms. Taiwan is regularly hit by typhoons, generally along its mountainous, sparsely populated east coast facing the Pacific. Sign up here. The mid-strength Typhoon Podul, packing gusts of as much as 155 kph (96 mph), was heading for the southeastern city of Taitung as it intensifies and was expected to make landfall nearby on Wednesday, weather officials said. In the eastern county of Hualien, nearly 700 people will be evacuated from their homes to guard against the risk of overflow from a natural dam formed after a landslide set off by a previous typhoon. "We must especially urge people living downstream to follow government instructions and evacuate," said Chu Chung-jui, an official of the National Science and Technology Center for Disaster Reduction. "Authorities are closely monitoring this landslide lake," he told a Taipei briefing for the typhoon taskforce. After making landfall, the storm was expected to hit the densely populated western coast before heading for China's southern province of Fujian later this week. As much as 600 mm (24 inches) of rain was forecast in southern mountainous areas over the next few days, the Central Weather Administration said. More than a year's rainfall fell in a single week this month in some southern areas, unleashing widespread landslides and flooding, with four deaths. Authorities were also working to evacuate those whose homes were damaged by a July typhoon that brought record winds and damaged the electricity grid in a rare direct hit to Taiwan's west coast. Swimmers on a beach near the northeastern port of Suao were enjoying the last of the fine weather before warnings of high seas went out and the coast guard cordoned off coastal areas. "Here in the east, we always have typhoons or earthquakes, so we are not really scared of those, but rather used to them," said Yu How-ling, a 30-year-old beach visitor. https://www.reuters.com/business/environment/taiwan-evacuate-hundreds-typhoon-podul-barrels-towards-southeast-2025-08-12/
2025-08-12 07:11
RBA cuts rates by 25bp to 3.6%, third cut this year Bullock says forecasts centred on a few more cuts Australian dollar slips 0.2%, bonds reverse earlier losses SYDNEY, Aug 12 (Reuters) - Australia's central bank cut interest rates on Tuesday for a third time this year and signaled further policy easing might be needed to meet its inflation and employment goals as the economy lost some momentum. Wrapping up a two-day policy meeting, the Reserve Bank of Australia board cut the main cash rate by a quarter point to 3.6%, saying that data suggested core inflation would moderate to around the middle of its 2% to 3% target band, assuming a gradual easing in policy. Sign up here. Markets had been fully priced for a cut, having been wrong-footed in July when the central bank held steady, given inflation had slowed as desired in the second quarter while unemployment had moved higher. Governor Michele Bullock would not comment on whether a cash rate of 3.6% was restrictive or not, but said policymakers would decide moves on a meeting by meeting basis to ensure the bank met its two mandates of low and stable inflation and full employment. "Forecasts imply that the cash rate might need to be a bit lower than it is today to keep inflation low and stable and employment growing but there is still a lot of uncertainty," said Bullock in a post-meeting decision. She added that a decision not to cut rates at Tuesday's meeting would have meant the central bank risked missing both of its mandates. The Australian dollar slipped 0.2% to $0.6508, while three-year bonds reversed earlier losses to be up 2 ticks at 96.62. Swaps imply just a 34% probability that the RBA would follow up with a September cut, although two more rate cuts by early next year are fully priced in to 3.1% The RBA stunned markets just last month by holding rates steady at 3.85% in a rare split decision as the majority of policymakers wanted to wait for more data to confirm inflation was easing towards the midpoint of the 2-3% target band. The RBA on Tuesday also slashed the outlook for economic growth as productivity stayed persistently weak. It, however, still forecast a slowdown in core inflation and maintained a steady labour market. Headline inflation eased to 2.1% in the June quarter, while the trimmed mean measure of core inflation hit a fresh three-year low of 2.7%. The labour market, on the other hand, is easing from full employment levels, with the jobless rate jumping to 4.3% from 4.1% in one month. There are signs that previous cuts in February and May are finally filtering through the economy, with consumer spending starting to pick up on the back of lower inflation and past tax cuts. The central bank has emphasised caution in easing, having only cut rates after the release of the quarterly inflation data. That is why investors are wagering on a cut in November and likely another in February next year. Meanwhile, the global outlook appears to be improving slightly. On Monday, U.S. President Donald Trump extended a tariff truce with China by another 90 days, staving off triple-digit duties on Chinese goods and an immediate escalation in the trade war. "Unemployment has jumped, strengthening the case for cuts. At the same time, robust household spending shows some families can still find room for discretionary purchases," said Harry Murphy Cruise, head of economic research and global trade at Oxford Economics Australia. "In the end, prices and jobs trump everything else. With good news on inflation and bad news on unemployment, more easing is warranted." https://www.reuters.com/world/asia-pacific/australias-central-bank-cuts-rates-two-year-low-360-2025-08-12/
2025-08-12 07:10
PARIS, Aug 12 (Reuters) - Power production at France's Bugey 3 nuclear reactor in the east of the country is expected to be reduced by 500 megawatts (MW) on Wednesday, data from operator EDF showed on Tuesday, as high river temperatures reduce the plant's ability to intake cooling water. A heatwave throughout France has led to multiple warnings of power reductions at a number of nuclear plants, particularly on the Rhone river in the east and the Garonne in the west. Sign up here. The Bugey 3 reactor has a maximum capacity of 910 MW, which will be reduced to 410 MW from 2:30 p.m. (1230 GMT) to midnight on Wednesday as the reactor is required to meet environmental safety measures, EDF's data showed. The high water temperature warnings for the Saint Alban plant - down river of the Bugey site - and the Golfech site in the west were moved to August 14, but restrictions have not yet been issued. Average temperatures in the country are expected to continue to peak throughout the week, reaching a high of 28.5 degrees Celsius (83.3°F) on Saturday, LSEG data showed. Nuclear power accounts for about 70% of total French power consumption annually, but August is the main holiday season throughout the country and electricity demand is often limited. https://www.reuters.com/sustainability/climate-energy/french-nuclear-power-production-expected-be-reduced-wednesday-2025-08-12/
2025-08-12 06:59
Trump signs order to extend China tariff deadline for 90 days US consumer prices index data due at 1230 GMT Spot gold dropped 1.5% to one-week low on Monday Aug 12 (Reuters) - Gold prices nudged higher on Tuesday, recovering slightly from a sharp decline in the previous session, as investors awaited U.S. inflation data for further insight into the Federal Reserve's rate-cut trajectory. Spot gold was up 0.1% at $3,348.41 per ounce, as of 0638 GMT. U.S. gold futures for December delivery eased 0.2% to $3,397.10. Sign up here. Gold slipped 1.6% on Monday, while futures dropped by more than 2% after U.S. President Donald Trump said tariffs will not be placed on imported gold bars, easing jitters in the market. "Market participants now will be definitely focusing on the upcoming Fed rate cut, which has been more or less priced in for September. If we start to see the core CPI data came in slightly below expected, that could actually further support this rate-cut expectations," OANDA senior market analyst Kelvin Wong said. "That could lower the cost of holding gold and the long-term U.S. 10-year treasury yield still remains below certain key resistance level, so that could actually support gold prices." All eyes are on U.S. consumer prices index data, which is due at 1230 GMT. Economists polled by Reuters projected that core CPI likely rose 0.3% in July, pushing the annual rate higher to 3%, away from the Fed target of 2%. Traders are pricing in around an 85% chance of a Fed rate cut next month, as per the CME FedWatch Tool. Gold tends to perform well during periods of uncertainty and in a low-interest-rate environment. Traders appeared to show scant reaction to a statement from a White House official that Trump signed an executive order on Monday, extending a pause in sharply higher U.S. tariffs on Chinese imports for another 90 days. Elsewhere, spot silver gained 0.7% to $37.89 per ounce, platinum rose 0.4% to $1,331.50 and palladium climbed 0.8% to $1,145.03. https://www.reuters.com/world/china/gold-edges-higher-with-focus-us-inflation-data-2025-08-12/
