2025-09-02 20:06

KABUL/ MAZAR DARA, Afghanistan, Sept 2 (Reuters) - Nasrullah Khan's voice breaks as he describes how with his own hands he buried three children in one grave and two young men in another after an earthquake struck the mountainous southeastern Afghan province of Kunar on Sunday. Nasrullah, an office worker from Kunar City, travelled six hours into Dewagul Valley in Kunar after the quake to help rescue efforts. Sign up here. "The first man I met had lost 18 members of his family," he said. "The injured and the dead were lying on the ground with no aid. In some villages, only two or three people survived in each household. It was the first time in my life I saw so many dead bodies." "Entire households were gone." In valleys lined with mud-brick homes, survivors carried bodies on woven stretchers. Nasrullah said he saw the bodies of children wrapped in patterned blankets and men digging graves with pickaxes. Sunday's magnitude 6 quake killed some 1,400 people and injured 3,124, with more than 5,400 houses destroyed, according to a Taliban spokesperson. On Tuesday, a second large quake shook the same region, leading to fears of yet more destruction in a country crippled by poverty, war and shrinking aid. Officials said three villages in Kunar were flattened, causing more than 600 deaths. The defence ministry said 40 flights had evacuated 420 victims as rescue teams moved from badly hit villages to more remote hamlets. Gul Bibi, an 80-year-old, was weeping, holding a toddler in her arms, next to a destroyed house in the mountain village of Mazar Dara, one of the places worst hit in Kunar province. "I lost everything," Bibi said, saying her family was buried under the mud and debris of their home. "Just this grandson survived." The United Nations has warned the toll would rise as victims remained trapped under the rubble. In Dara-e-Noor, in the province of Nangarhar, 23-year-old Ziarat Gul said his uncle’s house collapsed, killing a seven-year-old boy and two girls. "We pulled them out with our hands, but they were already gone." He and his family have been sleeping in open fields since the quake. Nasrullah said he went to three villages and helped bury 41 bodies, but not all could be laid to rest. "We buried people quickly, before aftershocks forced us to run from the gravesites," he said. https://www.reuters.com/business/environment/afghan-quake-survivors-dig-graves-with-pickaxes-entire-households-wiped-out-2025-09-02/

2025-09-02 19:59

Sept 2 (Reuters) - The Trump administration announced plans on Tuesday for competitive coal lease sales this year in Alabama, Montana, and Utah as part of a broad government effort to bolster domestic coal production. WHY IT'S IMPORTANT The sales are part of President Donald Trump's push to revitalize U.S. coal mining despite global efforts to transition to cleaner energy sources to cut planet-warming carbon emissions. Sign up here. KEY QUOTE "Coal has long been the backbone of America's energy and industrial strength," Interior Secretary Doug Burgum said in a statement. "By moving forward with these lease sales, we are creating good-paying jobs, supporting local communities, and securing the resources that keep America strong." BY THE NUMBERS In Tuscaloosa County, Alabama, the Interior Department's Bureau of Land Management will offer two leases covering 14,050 acres (5,685.83 hectares) that are estimated to contain 53 million tons of metallurgical coal used in steelmaking. The sale will be held on September 30. Utah's Little Eccles Tract, spanning 120 acres in Emery County, holds an estimated 1.29 million tons of recoverable coal. The planned sale of that lease responds to an application by Canyon Fuel Company and will take place on October 1. In Montana, BLM will hold a sale on October 6 for 1,262 acres with an estimated 167.5 million tons of coal in Big Horn County. The sale could potentially extend the Spring Creek Mine's life through 2051. Navajo Transitional Energy Company is the operator of that mine and applied for the lease. CONTEXT Trump has signed executive orders aimed at boosting coal production, including designating metallurgical coal as a critical mineral. While coal-burning plants now generate less than 20% of U.S. electricity, Trump has argued that deregulation could revive the industry and support energy security. Critics, however, have pointed to coal’s declining competitiveness and environmental impact. https://www.reuters.com/business/energy/trump-administration-plans-coal-lease-sales-alabama-montana-utah-2025-09-02/

2025-09-02 19:25

Sept 2 (Reuters) - President Donald Trump's administration can proceed with terminating more than $16 billion in grants awarded to non-profit groups to fight climate change, a U.S. federal appeals court ruled on Tuesday. Trump's predecessor Joe Biden's signature 2022 Inflation Reduction Act had awarded the grants aimed at reducing greenhouse gas emissions. The Environmental Protection Agency under Trump had sought to terminate the grants. Sign up here. The EPA under administrator Lee Zeldin maintained the program did not align with the agency's priorities, and it cited concerns with potential fraud, waste and abuse. The FBI and Justice Department under Trump also investigated the program. By a 2-1 vote, a panel of the U.S. Court of Appeals for the District of Columbia Circuit ruled , opens new tab that a lower-court judge lacked jurisdiction to hear the case brought by five of eight of the non-profits who had collectively been awarded $20 billion under the law's Greenhouse Gas Reduction Fund program. U.S. Circuit Judge Neomi Rao said that because the grant recipients' case was essentially contractual in nature, the case largely belonged before a specialist court that hears monetary claims against the government, the Court of Federal Claims. While U.S. District Judge Tanya Chutkan did have jurisdiction to hear a claim that the EPA violated the U.S. Constitution by not abiding by Congress' funding decisions, Rao said the agency did no such thing, as nothing in the law limited Zeldin's discretion to withhold or terminate grants. Rao's opinion was joined by a fellow Trump appointee and prompted a dissenting opinion by U.S. Circuit Judge Cornelia Pillard, an appointee of Democratic President Barack Obama, who called the administration's actions an "unlawful nullification of Congress’s duly enacted policy." The grant funds were being held by Citibank and had been awarded to Climate United Fund, Coalition for Green Capital, Power Forward Communities, Inclusiv and Justice Climate Fund. They sued after access to their collective funding worth over $16 billion was frozen. Chutkan issued a preliminary injunction in April, requiring Citibank to disburse the funds. But her ruling was paused while the appeal was considered. "It's fantastic to see reason prevail in the court system," an EPA spokesperson said in a statement. Climate United CEO Beth Bafford in a statement called the ruling disappointing but vowed "to press on for communities across the country that stand to benefit from clean, abundant, and affordable energy." https://www.reuters.com/legal/litigation/us-appeals-court-allows-trumps-epa-nix-climate-grants-2025-09-02/

2025-09-02 19:22

Sterling, yen fall against dollar Britain, France bond yields at multi-year highs on fiscal worries Higher Treasury yields support dollar Key US data due this week NEW YORK/MUMBAI, Sept 2 (Reuters) - Sterling and the Japanese yen slumped on Tuesday on growing investor anxiety about government finances, allowing the dollar to claw back some ground, while traders looked toward Friday's U.S. jobs report for signals on the greenback's next turn. Renewed pressure on bond markets, with Britain's 30-year borrowing costs rising to their highest levels since 1998, spilled over into currency markets, while gold hit fresh record highs. Sign up here. "Negative developments outside of the U.S. are probably what's driving the market today, in terms of dollar strength," said Vassili Serebriakov, FX strategist at UBS in New York. U.S. payrolls data to be released on Friday is likely to determine the path of the dollar in coming weeks, he added. Sterling fell to a 3-1/2 week low and was 1.24% lower in afternoon trade at $1.3375. The dollar strengthened 0.84% to 148.40 yen , hitting its highest against the Japanese currency since August 1. The euro fell 0.61% to $1.1637. While worries about fiscal issues overseas were the main drivers when U.S. markets reopened after the Labor Day holiday, markets also keyed in on late Friday's U.S. appeals court ruling that most of President Donald Trump's tariffs are illegal. The divided court allowed for the tariffs to remain until October 14, to give the administration a chance to file an appeal with the Supreme Court. Also, the return of the U.S. Congress on Tuesday leaves less than a month to pass legislation that would keep federal agencies funded and avert a partial government shutdown. The midmorning release of a slightly weaker-than-expected ISM manufacturing PMI did not elicit much response in the forex market, with Friday's August non-farm payrolls the main focus of the week. While sterling was weighed down by lingering worries over Britain's fiscal position ahead of a budget later this year, dovish-leaning remarks from a Bank of Japan official and the resignation of a key ruling party official pulled down the yen. "Sterling's underperformance is reflecting the growing concerns over the fiscal situation as we move closer to the budget and it becomes a bigger focus for market participants," said Lee Hardman, senior currency analyst at MUFG. Finance minister Rachel Reeves is expected to raise taxes in her autumn budget in order to remain on course for her fiscal targets, potentially adding to the challenge of boosting growth. For the Japanese yen, heightened political uncertainty was likely to remain a drag, while the lack of a hawkish policy signal from Deputy Governor Ryozo Himino on Tuesday would encourage speculators to continue rebuilding short yen positions, Hardman said. The dollar drew some support from an uptick in U.S. Treasury yields amid a broad bond market shakeout, with investors looking to the jobs report for cues on the path of benchmark interest rates. The buck has trended lower all year, and lost more than 2% in August. Against a basket of major currencies , it was up 0.74% Tuesday afternoon, at 98.37. Money markets are currently pricing in a 91% chance that the U.S. Federal Reserve will cut rates by 25 basis points this month, but those wagers could be tested by U.S. economic data lined up this week. Concerns about the independence of the Fed have also been in focus for investors in light of Trump's repeated push for lower policy rates and his move to fire Fed Governor Lisa Cook over allegations of mortgage fraud, which she denies. Elsewhere, data released on Friday showed that euro zone inflation edged up in August but remained close to the European Central Bank's 2% target, likely reinforcing market expectations that the ECB will keep benchmark rates unchanged in the near term. Spot gold , meanwhile, steadied after touching an all-time high and was last up 1.59% at $3,531.08 a troy ounce. https://www.reuters.com/world/africa/weak-pound-yen-shore-up-dollar-bonds-payrolls-focus-2025-09-02/

2025-09-02 17:50

Sept 2 (Reuters) - Gold's latest rally, triggered by expectations of U.S. rate cuts, concerns about Federal Reserve independence and strong demand from investors as well as the central bank, is likely to propel prices to new records in the coming weeks. Analysts see spot gold , which hit a record high of $3,527.5 as of 1700 GMT on Tuesday, in a $3,600-$3,900 range in the near to medium term, with potential to test the $4,000 level in 2026 if economic and geopolitical uncertainties persist. Sign up here. Gold has gained more than 34% this year and analysts have steadily raised their average 2025 price outlook from $2,756 an ounce in January to $3,065 in April and most recently to $3,220 in July, according to Reuters polls. Fed Chair Jerome Powell's acknowledgment of rising employment risks has seen financial markets betting on a September interest rate cut. "Supportive for gold is the bearish dollar outlook underpinned by expectations of Fed cuts, investors distancing from U.S. assets and tariff-related economic uncertainty," said Ricardo Evangelista, senior analyst at ActivTrades. The dollar has fallen nearly 11% since Donald Trump returned to the White House in January. A softer dollar makes the greenback-priced gold less expensive for holders of other currencies. Meanwhile, Trump's criticism of Powell and attempts to remove Governor Lisa Cook have heightened concerns over the Fed's independence and sparked further gold purchases. "The most bullish wildcard is... potential interference with the U.S. Federal Reserve and concerns about the dollar's status as a safe-haven," said Julius Baer analyst Carsten Menke. Among other factors fortifying gold's appeal are security concerns emanating from the Middle East and between Russia and Ukraine and central bank demand, particularly from developing countries. That includes China's central bank adding gold to its reserves for the ninth consecutive month in July. World Gold Council data shows central banks plan to increase gold holdings as a share of their reserves, while reducing dollar reserves over the next five years. "The combination of a rising gold price and central bank accumulation means that gold shares of reserves have risen steeply for some central banks," said Michael Hsueh, Deutsche Bank's precious metals analyst. Gold-backed ETFs have also seen significant inflows. SPDR Gold Trust , the world's largest physically-backed gold ETF, said its holdings rose to 977.68 tons for a 12% increase so far this year and its highest since August 2022. https://www.reuters.com/world/india/looming-fed-rate-cuts-fuel-gold-price-bonanza-records-2025-09-02/

2025-09-02 16:24

Manufacturing PMI eases to 48.7 in August Factories report worse conditions than Great Recession AI spending offsets some tariff impact, but hiring remains grim WASHINGTON, Sept 2 (Reuters) - U.S. manufacturing contracted for a sixth straight month in August as factories dealt with the fallout from the Trump administration's import tariffs, with some manufacturers describing the current business environment as "much worse than the Great Recession." The Institute for Supply Management (ISM) survey on Tuesday also showed some manufacturers complaining that the sweeping import duties were making it difficult to manufacture goods in the United States. President Donald Trump has defended his protectionist trade policy, which has raised the nation's average tariff rate to the highest in a century, as necessary to revive a long-declining U.S. industrial base. Sign up here. That was reinforced by government data showing spending on the construction of factories dropped in July and was down 6.7% from a year ago. A U.S. appeals court ruled last Friday that most of Trump's tariffs were illegal, adding more uncertainty for businesses. "I continue to see the broad economy generally and the manufacturing sector in particular as in a holding pattern until tariff-related uncertainty recedes," said Stephen Stanley, chief U.S. economist at Santander U.S. Capital Markets. The ISM said its manufacturing PMI edged up to 48.7 last month from 48.0 in July. A PMI reading below 50 indicates contraction in manufacturing, which accounts for 10.2% of the economy. Economists polled by Reuters had forecast the PMI would rise to 49.0. Seven industries, including textile mills, miscellaneous manufacturing and primary metals, reported growth last month. Among the 10 industries reporting contraction were makers of paper products, machinery, electrical equipment, appliances and components as well as computer and electronic products. Tariffs continued to dominate commentary from manufacturers. Some makers of transportation equipment said conditions were worse than the 2007-09 recession, adding "there is absolutely no activity" and "this is 100 percent attributable to current tariff policy and the uncertainty it has created." Some viewed the conditions as consistent with "stagflation." Some electrical equipment, appliances and components producers complained that "'made in the USA' has become even more difficult due to tariffs on many components." They said the "administration wants manufacturing jobs in the U.S., but we are losing higher-skilled and higher-paying roles." Others reported that because of the lack of "stability in trade and economics, capital expenditures spending and hiring are frozen." Manufacturers of computer and electronic products said "tariffs continue to wreak havoc on planning and scheduling activities," adding that "plans to bring production back into (the) U.S. are impacted by higher material costs, making it more difficult to justify the return." Food, beverage and tobacco products manufacturers warned that everything made of organic sugar was "about to get significantly more expensive" because of a 50% tariff on imports from Brazil and the U.S. Department of Agriculture's elimination of the specialty sugar quota. Stocks on Wall Street were trading lower as investors worried over the appeals court ruling on the legality of tariffs. The dollar advanced against a basket of currencies. U.S. Treasury yields rose. GRIM HIRING PICTURE The ISM survey's forward-looking new orders sub-index increased to 51.4 after contracting for six consecutive months. Nonetheless, ISM Manufacturing Business Survey Committee Chair Susan Spence said that for every positive comment about new orders there were "2.5 comments expressing concern about near-term demand, primarily driven by tariff costs and uncertainty." The survey's production gauge fell to 47.8 from 51.4 in the prior month. With production declining, factory employment remained subdued, with the ISM noting that "layoffs and not filling open positions remain the main head-count management strategies." "The grim hiring picture for manufacturing suggests companies have little confidence that a sustained improvement in demand lies around the corner," said Oliver Allen, senior U.S. economist at Pantheon Macroeconomics. Suppliers took a bit longer to deliver materials to factories last month. The ISM survey's supplier deliveries index increased to 51.3 from 49.3 in July. A reading above 50 indicates slower deliveries. Lengthening delivery times meant prices paid by factories for inputs remained elevated. The survey's prices paid measure slipped to a still-high 63.7 from 64.8 in July. The high reading supports economists' contention that goods prices will accelerate in the second half of 2025. Tariffs have been slow to pass through to higher inflation, with economists arguing that businesses are still selling merchandise accumulated before the import duties kicked in. Businesses also have been absorbing some of the tariff-related costs. But inventories were drawn down in the second quarter and companies have warned tariffs are raising their costs, which economists expect will eventually be passed on to consumers. It is, however, not all doom and gloom for manufacturing. Businesses have been boosting spending on AI products, which is helping to offset some of the drag from import duties. Spending on intellectual property products grew at its fastest pace in four years in the second quarter, while investment in equipment was strong. Economists expect the AI spending spree to continue, with factories also likely to get a boost from accelerated depreciation allowances on investments in Trump's tax and spending bill. "Tax incentives that start in 2026 may help to boost investment later in 2025 and into 2026, but for now most producers remain in wait-and-see mode," said Ben Ayers, senior economist at Nationwide. https://www.reuters.com/business/us-manufacturing-contracts-sixth-straight-month-amid-tariff-drag-2025-09-02/