2025-08-07 21:17

LIMA, Aug 7 (Reuters) - State-run Petroperu is working on a framework agreement with its counterpart Petroecuador to connect oil wells in Ecuador with Peru's northern pipeline, its chairman said on Thursday. The agreement, which is being drafted by Peru's Ministry of Energy and Mines, would include investment and execution commitments for an approximately 60-kilometer (37-mile) connection line in an Amazonian region on the countries' shared border. Sign up here. "The exact investment for this connection and how it will be financed have yet to be defined," Petroperu Chairman Alejandro Narvaez said. Speaking at a conference with the foreign press, the executive stated that the project, after a development period, would allow Ecuadorean crude to reach the newly expanded 95,000 barrel-per-day Talara refinery in northern Peru via the pipeline. The Peruvian oil company, which is navigating a crisis after the larger-than-planned investment in Talara, expects to post a profit of $103 million next year, recovering from an estimated loss of $223 million for 2025. Petroperu CEO Oscar Vera, speaking at the same conference, said Petroecuador would likely make the majority of the investment. "It is of greater interest to them, because it is very costly for Petroecuador to transport crude using their current methods," Vera said. Petroecuador did not immediately respond to a request for comment. Peru's 1,100-kilometer pipeline, which has suffered frequent attacks from local communities that have halted its activities, is currently operational but is not in service as it has no active transport contracts with area producers. Separately, Petroperu announced earlier this week that it had exported approximately 137,500 barrels of commercial jet fuel to Ecuador from Talara. https://www.reuters.com/business/energy/perus-petroperu-eyes-pipeline-link-ecuador-oil-2025-08-07/

2025-08-07 21:17

MP reports record production of NdPr, the two most in-demand rare earths Prepayments from Apple deal will fund majority of capital investments Stock up 8% after the bell Aug 7 (Reuters) - MP Materials (MP.N) , opens new tab posted a smaller-than-expected second-quarter loss Thursday, as the U.S. rare earths miner benefited from higher production amid booming demand, sending its shares up 8% after the bell. The company - which operates the only U.S. rare earths mine in Mountain Pass, California - has been in the spotlight as President Donald Trump's administration ramps up efforts to build out a domestic supply to reduce dependence on China. Sign up here. The push has powered a more than four-fold increase in the company's stock so far this year. MP Materials said quarterly rare earths concentrate production at the mine increased nearly 45% to 13,145 metric tons, while production for neodymium and praseodymium (NdPr) — the two most in-demand rare earths — jumped nearly 120% to 597 metric tons. Current-quarter production of NdPr oxide is expected to rise 10% to 20% sequentially, founder and Chief Operating Officer Michael Rosenthal said on a post-earnings call. Rare earths refer to a group of 17 metals used in a wide range of products including consumer electronics, electric vehicles, aircraft engines and military applications. Last month, the company signed a multibillion-dollar deal with the U.S. government to boost output of rare earth magnets. The agreement guarantees a floor price of $110 per kilogram for NdPr, nearly twice the current Chinese market level. The price floor had long been sought by U.S. critical minerals companies who have complained about China's market manipulations. The deal, which would make the Pentagon the company's biggest shareholder, was followed by a $500 million deal with Apple (AAPL.O) , opens new tab for the supply of rare earth magnets to the iPhone maker. Prepayments from the Apple deal will fund a majority of the capital investments required to expand the Independence rare earths mine located in Texas, CEO James Litinsky said on the call. The Las Vegas-based company posted an adjusted loss of 13 cents per share, compared with analysts' expectations of 19 cents loss per share, according to data compiled by LSEG. https://www.reuters.com/business/mp-materials-posts-smaller-loss-rare-earths-production-surges-2025-08-07/

2025-08-07 21:04

Dow, S&P 500 end lower European shares supported by Ukraine ceasefire expectations Sterling rises after 'hawkish' BoE rate cut NEW YORK/LONDON, Aug 7 (Reuters) - Major Wall Street indexes were mixed on Thursday, with the Dow and S&P 500 ending lower, as European stocks closed at a one-week high on strong financial stocks and hopes of a Ukraine ceasefire. U.S. President Donald Trump tapped Council of Economic Advisers Chairman Stephen Miran to serve as a Federal Reserve governor. Sign up here. Oil prices ended down for a sixth straight session after the Kremlin said Russian President Vladimir Putin would meet with Trump, who is seeking a breakthrough to end the Ukraine war. Prices of gold, seen as a safe haven in volatile times, extended gains to a two-week high. U.S. Treasury yields were modestly higher following a soft auction of 30-year bonds, the latest in a string of sales showing lackluster demand. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab rose 3.03 points, or 0.32%, to 936.26. The Dow Jones Industrial Average (.DJI) , opens new tab fell 0.51% to 43,968.64 and the S&P 500 (.SPX) , opens new tab declined 0.08% to 6,340.00 as shares of Eli Lilly (LLY.N) , opens new tab dropped after data from its oral weight loss drug disappointed. The Nasdaq Composite (.IXIC) , opens new tab gained 0.35% to 21,242.70. "(There) are persistent risks to the downside. Downside surprises in official data are increasing," Capital.com analyst Kyle Rodda wrote in a note. "Valuations are also stretched, with forward price to earnings hovering around the highest in four years. And trade uncertainty persists." Earlier, shares were under pressure from a report that Federal Reserve Governor Christopher Waller was Trump's top candidate to become the central bank chair, raising concerns over the Fed's independence. Higher U.S. tariffs on imports from dozens of countries kicked in on Thursday, raising the average U.S. import duty to the highest in a century. European shares logged their biggest daily rise in over two weeks on Thursday, boosted by financial stocks as investors weighed mixed corporate earnings and U.S. tariffs. The pan-European STOXX 600 index (.STOXX) , opens new tab closed at a one-week high. Plans for a meeting between Trump and Putin over the war in Ukraine also helped sentiment in European equities and underpinned the euro. A ceasefire "would be an extra positive," said Emmanuel Cau, Barclays head of European equity strategy. The Bank of England cut interest rates, but four of its nine policymakers, worried about inflation, voted to keep rates unchanged. The split vote suggested the BoE's run of rate cuts might be nearing an end. Sterling strengthened 0.67% to $1.3444. "The vote split is clearly a lot more hawkish than I was expecting," said Dominic Bunning, head of G10 FX strategy at Nomura. Japanese shares earlier hit a record high. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) , opens new tab closed up 1.03%, as Japan's Nikkei (.N225) , opens new tab gained 0.65%. Taiwan's stock benchmark (.TWII) , opens new tab jumped as much as 2.6% to a more than one-year peak. Shares in chipmaker TSMC (2330.TW) , opens new tab, which this year announced additional investment in its U.S. production facilities and so is expected to be relatively unscathed by the U.S. tariff on imported chips, soared to a record high. The dollar index , which measures the greenback against a basket of currencies, fell 0.14%, with the euro up 0.07% at $1.1667. The yield on benchmark U.S. 10-year notes rose 1 basis points to 4.242%, and the 30-year bond yield advanced 1.1 basis points to 4.8221%. In commodities, spot gold rose 0.93% to $3,399.67 an ounce and touched its highest since July 23. U.S. gold futures settled 0.6% higher at $3,453.70 an ounce. Global oil prices wiped out earlier gains, with both benchmarks touching eight-week lows after Trump's comments on progress in talks with Moscow. Brent crude futures settled down 46 cents, or 0.7%, at $66.43 a barrel. U.S. crude futures fell 47 cents, or 0.7%, to $63.88. https://www.reuters.com/world/china/global-markets-wrapup-8-2025-08-07/

2025-08-07 21:04

ORLANDO, Florida, Aug 7 (Reuters) - Tariffs and worries over the Federal Reserve's independence battled against tech resilience in U.S. stock market trading on Thursday, while the Bank of England's narrow call to cut rates highlighted the dilemma facing many central banks right now. More on that below. In my column today I explore whether U.S. President Donald Trump's punitive tariffs on India and Brazil could inadvertently push the BRICS nations closer together and breathe new life into the bloc. Sign up here. If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today. Today's Key Market Moves Tariffs, Fed fears take their toll A day packed with policy decisions, economic data, corporate news, and twists in the global trade war and saga of Trump's influence over the Federal Reserve ended with U.S. shares in the red on Thursday. Optimism around the U.S. tech and artificial intelligence revolution abounds, and companies that are manufacturing in the U.S. or have committed to do so will escape Trump's new 100% tariffs on imported chips. But the unpredictable and impulsive nature of Trump's tariff policy, the ultra-high duties imposed on some key trading partners, and the expected negative impact on growth and inflation may finally be starting to weigh on investors' minds. Trump's interference in independent economic institutions is certainly worrying investors. These concerns intensified on Thursday after Bloomberg News reported that Fed Governor Christopher Waller is Trump's favored pick to replace chair Jerome Powell. Waller voted last month to cut interest rates, and would be seen as sympathetic to Trump's desire to slash borrowing costs. Maybe too sympathetic. Trump also said on Thursday that Council of Economic Advisers Chairman Stephen Miran will fill a vacant spot on the Fed board until January. Earlier in the day, the Bank of England cut interest rates to 4%. But the 5-4 vote was so tight, the BoE's rate-setting committee held two votes for the first time since the BoE was granted independence in 1997 in order to reach a decision. Growth is slowing, inflationary pressures are rising. It's central bankers' worst dilemma, one that many around the world are facing right now. In Asia on Thursday, data showed that Chinese exports and imports in July were much stronger than expected as firms front-loaded activity ahead of Trump's tariff deadline later this month. Chinese stocks leaped nearly 2%, and the yuan rose too. Elsewhere in emerging markets on Thursday, Mexico's central bank cut interest rates and Indian Prime Minister Narendra Modi and Brazil's President Luiz Inacio Lula da Silva spoke by phone, covering a broad range of topics including Trump's punitive tariffs on both countries. More on that below. Could Trump tariffs become BRIC-building blocks? U.S. President Donald Trump has the so-called 'BRIC' group of nations directly in his trade war crosshairs, slapping super-high tariffs on imports from Brazil and India, and accusing them of pursuing "anti-American" policies. Washington's relations with Brasilia and New Delhi have sunk to new lows. But this belligerence could backfire. The White House said on Wednesday that it will impose an additional 25% tariff on goods from India, citing New Delhi's continued imports of Russian oil. That brings the levy on most goods to 50%, among the highest rate faced by any U.S. trading partner. Brazil also faces 50% tariffs on many of its U.S.-bound exports, not because of trade imbalances, but because of Trump's anger at what he calls a "witch hunt" against his ally, Brazil's former President Jair Bolsonaro, who has been charged with plotting a coup following his election loss in 2022. This breakdown in relations could be Trump's intention: push these countries to the brink so that they'll agree to trade deals that are heavily lopsided in Washington's favor. That strategy seemed to work with Japan and the European Union. But hitting these 'BRICS' economies with eye-watering tariffs could push them closer together, strengthening the resolve of a group that appeared to be losing whatever momentum, purpose and unity it had. THE 50% CLUB The original BRIC nations - Brazil, Russia, India and China - held their first summit in 2009, eight years after former Goldman Sachs economist Jim O'Neill coined the acronym for this group of emerging economies he said would challenge the G7 group of rich countries in the future. South Africa became the 'S' in BRICS two years later, and the club now comprises 11 countries including Indonesia, Iran and Saudi Arabia, as well as a further nine 'partner' countries including Malaysia, Nigeria, and Thailand. It was always a disparate group - geographically, economically, culturally, and politically - meaning its cohesiveness has always been questionable. Its relations have sometimes been rocky, particularly among its largest members. That's why it was so notable when Indian Prime Minister Narendra Modi on Wednesday announced that he will visit China for the first time in over seven years. This could be a sign that rising tensions with Washington are helping to thaw frosty ties between New Delhi and Beijing. Also on Wednesday, Brazil's President Luiz Inacio Lula da Silva told Reuters that he plans to call the leaders of India and China to discuss a joint BRICS response to Trump's tariffs. "I'm going to try to discuss with them about how each one is doing in this situation ... so we can make a decision," Lula said. "It's important to remember that the BRICS have ten countries at the G20," he added, referring to the group that gathers 20 of the world's biggest economies. UNITED FRONT While nothing unites like a common enemy, the differences between the BRICS countries could limit how solid that front can actually be. Stephen Jen, CEO and co-CIO of Eurizon SLJ Asset Management in London, posits that trade links between the five core BRICS nations - never mind the historical, political and cultural ties - are weak. Only 14% of their trade is with each other. Russia and Brazil may have higher levels of intra-BRICS trade, but only 9% of China's exports are BRICS-bound, significantly less than the 19% that goes to emerging Asia and 15% destined for the U.S. And in economic, political and military terms, China matters far more than the others on the global stage. "BRICS is more of an alliance on paper, not in reality," Jen says. But there are signs that intra-BRICS trade is strengthening. China-Russia trade was a record $244.8 billion last year, and China and India are the biggest two buyers of Russian oil. China is Brazil's largest trading partner, accounting for 28% of Brazil's exports and 24% of its imports. Roughly 70% of China's soybean imports are from Brazil. TENUOUS ALLIANCE Trump's tariffs could push BRICS countries closer together in the near term, in areas such as trade, investment, and currency usage. They may feel it's in their economic interests and, for some, in their political interests, to present a united front. How long that front can hold is anyone's guess. These countries, particularly India, may resist moving further under China's influence, and Russia's pariah status could limit further integration beyond commodity imports. In the meantime, however, Trump's tariff salvos are BRICS-bound. How these emerging economies respond could be an indication of whether we may truly be seeing a reshuffling of global alliances. What could move markets tomorrow? Want to receive Trading Day in your inbox every weekday morning? Sign up for my newsletter here. Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles , opens new tab, is committed to integrity, independence, and freedom from bias. https://www.reuters.com/business/global-markets-trading-day-graphic-2025-08-07/

2025-08-07 21:00

Eli Lilly falls after late-stage data for oral weight-loss drug Weekly jobless claims rise to highest level in a month Indexes: Dow down 0.5%; S&P 500 down 0.1%; Nasdaq up 0.3% NEW YORK, Aug 7 (Reuters) - The Dow and S&P 500 eased on Thursday, as shares of Eli Lilly dropped after data from its oral weight loss drug disappointed, while the Nasdaq eked out a record closing high. Just before the session's end, U.S. President Donald Trump said he will nominate Council of Economic Advisors Chairman Stephen Miran to serve out the remaining term of Federal Reserve Governor Adriana Kugler. Sign up here. Miran is due to serve in the role until January 31, 2026, while Trump continues a search for a permanent replacement. Earlier, investors digested a Bloomberg report that Fed Governor Christopher Waller was Trump's top candidate for the U.S. central bank's chair post. Trump has been critical of current Chair Jerome Powell for holding off on cutting borrowing costs. Eli Lilly (LLY.N) , opens new tab, which also raised its full-year profit and sales forecast, fell after the orforglipron drug data. The stock ended down 14.1%. Shares of Fortinet (FTNT.O) , opens new tab also fell, with the stock finishing 22% lower, after the cybersecurity firm gave a revenue forecast below Wall Street estimates. "The market rally is beginning to look a little bit tired here. We ran up on earnings, and of course the market was basically ignoring a lot of the tariff news," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York. Trump's higher tariffs on imports from dozens of countries kicked in on Thursday, raising the average U.S. import duty to its highest in a century. The Dow Jones Industrial Average (.DJI) , opens new tab fell 224.48 points, or 0.51%, to 43,968.64, the S&P 500 (.SPX) , opens new tab lost 5.06 points, or 0.08%, to 6,340.00 and the Nasdaq Composite (.IXIC) , opens new tab gained 73.27 points, or 0.35%, to 21,242.70. The S&P 500 has hit 15 record closing highs this year, while the Nasdaq has posted 17 all-time closing highs so far in 2025. Among other decliners, chipmaker Intel (INTC.O) , opens new tab was down 3.1% after Trump called for the immediate resignation of new Intel CEO Lip-Bu Tan, calling him "highly conflicted" due to his ties to Chinese firms. Helping the Nasdaq, Apple (AAPL.O) , opens new tab shares rose 3.2% after the latest tariff salvo from Trump largely exempted industry heavyweights from his threat to impose 100% levy on chips and semiconductors. The U.S. president announced a tariff of about 100% on imports of semiconductors, but said it would not apply to companies that are manufacturing in the U.S. or have committed to do so. Rate cut expectations remained largely the same after the day's data on the labor market. Weekly initial jobless claims rose 7,000 to a seasonally adjusted 226,000, the highest level since the week ended July 5 and slightly above the 221,000 estimate of economists polled by Reuters, according to the data. Market expectations for a September rate cut of at least 25 basis points from the Fed stood at 93.2%, down slightly from the 94.6% in the prior session and well above the 37.7% from a week ago, according to CME's FedWatch Tool. Declining issues outnumbered advancers by a 1.01-to-1 ratio on the NYSE. There were 232 new highs and 80 new lows on the NYSE. On the Nasdaq, 1,944 stocks rose and 2,622 fell as declining issues outnumbered advancers by a 1.35-to-1 ratio. Volume on U.S. exchanges was 17.40 billion shares, compared with the 18.23 billion average for the full session over the last 20 trading days. https://www.reuters.com/business/sp-500-eases-with-eli-lilly-nasdaq-manages-record-closing-high-2025-08-07/

2025-08-07 20:47

WASHINGTON, Aug 7 (Reuters) - The United States has imposed tariffs on imports of one-kilo gold bars, the Financial Times reported on Thursday, citing a letter from Customs Border Protection. The letter - dated July 31 - said one-kilo and 100 ounce gold bars should be classified under a customs code subject to levels, according to the newspaper, which added that the move could impact Switzerland, the world's largest refining hub. Sign up here. https://www.reuters.com/world/europe/us-imposes-tariffs-one-kilo-gold-bars-ft-reports-2025-08-07/