2025-08-08 12:06
LONDON, Aug 8 (Reuters) - Bank of England Chief Economist Huw Pill said on Friday that inflation pressures were likely to continue weakening, but there was a risk that future rate cuts could be delayed by shifts in longer-term price- and wage-setting behaviour in the economy. "If that's more the driver of this increase in the upside risk to inflation, that might lead us to ... have to question whether the pace at which we're reducing Bank Rate over the last year, a pace of one quarter-point cut every quarter, is that sustainable?," Pill said in an online briefing to businesses. Sign up here. "I think that's kind of where more of the dissenting members focus, the members of the committee who were voting ultimately to hold rates at 4.25% yesterday," he said. The BoE cut its benchmark Bank Rate to 4.0% from 4.25% on Thursday but Pill and three other Monetary Policy Committee members favoured keeping rates on hold due to inflation pressures, resulting in an unexpectedly tight 5-4 vote. The outcome raised the prospect of the BoE slowing its run of rate cuts. Investors are not fully pricing in a next quarter-point reduction before February. https://www.reuters.com/world/uk/bank-englands-pill-sees-risks-that-could-slow-pace-rate-cuts-2025-08-08/
2025-08-08 11:49
Markets eye dovish tilt at Fed as Miran appointed Nasdaq futures rise, on track for third day of gains Gold futures jump on report of US tariffs SINGAPORE/LONDON, Aug 8 (Reuters) - Global shares rose on Friday, along with the dollar, as investors clung to the view that U.S. interest rates may fall further this year, while gold futures rallied on a report of duties on U.S. imports of bullion bars. An index of world stocks traded near record highs, shrugging off weakness on Wall Street overnight, and in Europe, shares got a lift from a series of robust earnings and from optimism that the hefty U.S. tariffs that kicked in on Thursday would be subject to negotiation. Sign up here. The outlook for monetary policy in the United States, a linchpin for global markets, has become even more open to question due to a series of changes at the Federal Reserve, where policymakers are divided on the impact of inflation and the central bank's leadership is shifting. U.S. President Donald Trump said on Thursday he would nominate Council of Economic Advisers Chairman Stephen Miran to fill a vacant seat at the Fed for a few months while the White House seeks a permanent addition to the central bank's governing board and continues its search for a new chair. Miran holds similar views to Trump, who has berated Chair Jerome Powell for being "too late" in cutting interest rates, even though growth is holding up and inflation is ticking higher. "It locks in a vote for rate cuts at all the meetings between now and the end of January," said Ray Attrill, head of FX strategy at National Australia Bank in Sydney. "Markets are already travelling with a very strong expectation that there will be a rate cut," he added. "Though there's a question mark over whether he'll succeed in ratification in time for the September meeting." The MSCI All-Country index (.MIWD00000PUS) , opens new tab was up 0.1% on the day, just below record highs struck two weeks ago, and was heading for a 2% rise this week, its best performance since mid-June. Europe's STOXX 600 (.STOXX) , opens new tab was up 0.2%. Zurich's SMI index (.SSMI) , opens new tab, which on Thursday shrugged off Switzerland's 39% U.S. tariff coming into effect, eased 0.14%. The market is also digesting a Bloomberg News report that Fed Governor Christopher Waller is the top candidate to replace Powell, whose term ends on May 15, 2026. "The effective shock (from tariffs) is there. So the question now is: How is it going to impact the economy and the data, and when? Because up to now, up to now, let's be fair, it's been less severe than most have anticipated," Lombard Odier economist Samy Chaar said. Overall tariffs may be lower than many had feared back in April, but they are at their highest in at least a century. Relief over lower-than-expected duties may be short-lived as a result. A case in point would be the European Union, which now has a 15% tariff, rather than the 50% that Trump had threatened, Chaar said. "That's the vulnerability in the market ... it is focusing on the good news, which is not getting the 50%, but getting the 15%. And then the problem is that 15% is actually a big shock and, at some point, it's going to show in the data," he said. U.S. gold futures hit a record high after a report in the Financial Times that the U.S. had imposed tariffs on imports of 1-kg gold bars, which comprise the bulk of Switzerland's bullion exports to the U.S., citing a letter from Customs and Border Protection. Spot gold edged up 0.1% to $3,400 an ounce, while gold futures rose as much as 2.3% to an all-time peak of $3,477. U.S. stock futures , were both up 0.2%, pointing to a modest rise at the opening bell later. The rally for stocks comes "against the backdrop of an emerging titanic dovish pivot at the Federal Reserve", said Tony Sycamore, market analyst at IG in Sydney. The yield on benchmark 10-year Treasury notes rose to 4.2442%, unchanged from the U.S. close on Thursday, after weak demand at an auction of 30-year bonds, the latest in a string of lacklustre sales this week. The dollar rose 0.1% against the yen to 147.24 . The euro dipped 0.2% to $1.1648, having gained 2.13% in a month, while the dollar index , which tracks the greenback against a basket of currencies of other major trading partners, was up 0.2% at 98.21. https://www.reuters.com/business/media-telecom/global-markets-wrapup-3-2025-08-08/
2025-08-08 11:42
LONDON, Aug 8 (Reuters) - The pound neared two-week highs versus the dollar on Friday as traders continued to digest Thursday's Bank of England meeting, which saw interest rates cut to 4% as well as the central bank's first ever re-vote. At 1124 GMT the pound was unchanged at $1.345 , having risen to its highest level since July 25 in early trading. Sign up here. The dollar was marginally stronger across the board on Thursday, though headed for a weekly loss, as traders mull U.S. President Donald Trump's temporary choice for a fill-in Federal Reserve governor. Meanwhile, sterling was stronger against the euro, which eased 0.2% to 86.59 pence . The BoE cut rates on Thursday, but four of its nine policymakers voted to keep borrowing costs on hold, leading to the Monetary Policy Committee holding two rate votes for the first time in its history. The meeting saw the pound rise by 0.7% against the dollar on Thursday, its biggest one-day rally in 11 weeks. It is on track for a 1.3% rise this week. "The key takeaway is that they did maintain their gradual and careful guidance when it comes to future policy easing," said Michael Brown, senior research strategist at Pepperstone. "...if you cut out all the noise about having to vote twice...that guidance is still there and...kind of implies that that means a quarterly pace of monetary easing," Brown said. Traders are placing a 93% chance of no change to the bank rate at the BoE's next meeting in September. "As Bailey said, the direction of travel for rates is lower, I still think they go again this year, it's just a question of the conviction behind that vote has waned a little bit," said Brown. In a note, Commerzbank FX strategists said BoE decision-makers appear increasingly concerned about persistent inflation. "It seems extremely unlikely that interest rates will be raised. Rather, the question is when we can expect the next rate cut," they wrote, adding that a cut at the September meeting now seems highly improbable, and one at the November meeting could be called into question if inflation remains high. "For the time being, this is good news for the pound," they said. https://www.reuters.com/markets/currencies/sterling-two-week-high-traders-digest-boe-vote-split-2025-08-08/
2025-08-08 11:33
MOSCOW, Aug 8 (Reuters) - Russia's nuclear power monopoly Rosatom has started development of the Shirondukuyskoye uranium deposit in eastern Siberia, planning to produce the first uranium there in 2028, the company's mining division said on Friday. The deposit - located close to the city of Krasnokamensk near the border with China and Mongolia, which is dubbed the "uranium capital of Russia" - has estimated reserves of 8,000 tons of uranium and 40,000 tons of molybdenum. Sign up here. "The development of the Shirondukuyskoye deposit is an important stage in the development of Russia's uranium mining industry," the division said in a statement. "Its mineral resource base will not only support planned uranium production volumes but also ensure the long-term development of Krasnokamensk," it added. Russia is only the world's sixth largest uranium producer but controls about 44% of global uranium enrichment capacity. Russia imports uranium from other countries, mostly from Kazakhstan. Rosatom plans to increase domestic uranium production to 4,000 tons by 2030 from 2,796 tons in 2024. Rosatom said that with Shirondukuyskoye, as well as the two nearby Argunskoye and Zherlovoye deposits, going into operation, uranium output could be increased by 2,000 tons per year. Russia is currently boosting the share of nuclear energy in its energy production. The share of nuclear is projected to reach 25% by 2045 from 20% currently, according to Rosatom. https://www.reuters.com/business/energy/russias-rosatom-starts-development-uranium-deposit-eastern-siberia-2025-08-08/
2025-08-08 11:28
Tata Motors' profit drops 63% JLR impacted by U.S. export halt in first quarter Maintains JLR guidance despite tariff impact Aug 8 (Reuters) - Indian automaker Tata Motors (TAMO.NS) , opens new tab posted a 63% slump in quarterly profit on Friday, its fourth straight quarter of decline, as U.S. tariffs hurt businesses that were already reeling from weak sales at home and in its luxury car segments. Tata Motors, India's top seller of electric cars and commercial vehicles, has been battling weak urban demand at home. Overseas, its profit-driving luxury unit Jaguar Land Rover logged a sales drop of 11% due to a temporary halt in U.S. exports and the phase-out of older Jaguar models. Sign up here. Quarterly volumes and revenue took a hit from a 27.5% U.S. tariff on UK- and EU-made cars, along with the planned phase-out of legacy Jaguar models ahead of a new launch, Tata Motors said on Friday, adding that the tariffs dealt a direct blow to profitability and cash flow. U.S. duties wiped 254 million pounds ($341.33 million) off its quarterly earnings, Tata Motors said. However, it kept its JLR forecast unchanged, saying a U.S.-UK trade deal signed in May would sharply cut the tariff hit. The pact lets the UK export 100,000 cars a year to the U.S. at a 10% duty, instead of the 25% faced by other countries. The company reported a profit of 39.24 billion rupees ($447.8 million) in the April-June quarter, down from a restated 105.14 billion rupees a year earlier that includes a 49.75-billion-rupee one-time gain. Excluding the gain, profit was down 30.5% year-on-year. Tata Motors expects demand to remain challenging but aims to boost performance as clarity on tariffs emerges and festive demand picks up, Chief Financial Officer P.B. Balaji said. With a planned demerger in October 2025 to split its commercial and passenger vehicle businesses, the company is focused on delivering a strong second-half performance, he added. Quarterly revenue fell 2.5% from a year earlier as sales slowed, mirroring trends at domestic rivals Maruti Suzuki India (MRTI.NS) , opens new tab and Hyundai Motor India (HYUN.NS) , opens new tab. ($1 = 87.6200 Indian rupees) ($1 = 0.7442 pounds) https://www.reuters.com/world/india/indian-automaker-tata-motors-quarterly-profit-plunges-tariffs-slow-sales-bite-2025-08-08/
2025-08-08 11:27
Latest tariffs raise concerns over economic activity Trump threatens further sanctions on buyers of Russian oil Putin and Trump to hold meeting in coming days, says Kremlin LONDON, Aug 8 (Reuters) - Oil prices edged higher on Friday but was poised for the steepest weekly losses since late June on a tariff-hit economic outlook and a potential meeting between U.S. President Donald Trump and Russian counterpart Vladimir Putin. Brent crude futures were up 52 cents, or 0.78%, at $66.95 a barrel by 1104 GMT. U.S. West Texas Intermediate crude futures rose 43 cents, or 0.67%, to $64.31. Sign up here. Brent was on track to be down 3.9% over the week while WTI was set to finish 4.5% lower than last Friday's close. Higher U.S. tariffs against a host of trade partners went into effect on Thursday, raising concern over economic activity and demand for crude oil, ANZ Bank analysts said in a note. The latest tariffs arrive against a backdrop of an already weaker than expected U.S. labour market and Thursday's announcement by the Kremlin that Putin and Trump would meet in the coming days as trade tensions rise between the U.S. and Russia's oil customers. Trump this week threatened to increase tariffs on India if it kept buying Russian oil, which the market viewed as putting further pressure on Russia to reach a deal with the U.S., said independent analyst Tina Teng. Trump also said China, the largest buyer of Russian crude, could be hit with tariffs similar to those levied against Indian imports. The potential meeting raises expectations of a diplomatic end to the war in Ukraine, which could lead to eased sanctions on Russia, with Russian stocks rallying after the news. "There could be a meeting between Trump and Putin in the near future, which could indicate that Trump is adopting a wait-and-see approach with regard to further sanctions against Russia and its allies," Commerzbank analysts said in a note. However, some analysts remain cautious. "The Russian leader is expected to insist on having his territorial demands granted, a hard sell for the invaded country, while his U.S. counterpart will push for a ceasefire," said PVM analyst Tamas Varga. "No breakthrough is anticipated, and the U.S. following through on its threat to impose secondary sanctions on those dealing in Russian energy - including China and India - remains a possibility." https://www.reuters.com/business/energy/oil-set-steepest-weekly-losses-since-june-2025-08-08/
