2025-08-29 21:49
US dollar index last down against euro after PCE data Oil prices lower with weaker demand expected Fed funds futures price in 89% odds of a US cut next month NEW YORK, Aug 29 (Reuters) - Major stock indexes fell on Friday, with technology shares including Dell Technologies (DELL.N) , opens new tab leading declines, while the dollar weakened against the euro after U.S. inflation data kept alive expectations of a September interest rate cut. Dell dropped 8.9% after it reported results late Thursday that included high manufacturing costs for artificial intelligence-optimized servers. Other AI-related shares fell in the broader tech selloff including Nvidia (NVDA.O) , opens new tab, down 3.3%, and Broadcom (AVGO.O) , opens new tab, down 3.6%. The Nasdaq fell more than 1% and the S&P 500 technology index (.SPLRCT) , opens new tab fell 1.6%. Sign up here. The U.S. Commerce Department said on Friday its Personal Consumption Expenditures Price Index (PCE) 0.2% in July, versus an unrevised 0.3% increase in June and matching the estimate of economists polled by Reuters. In the 12 months through July, PCE inflation increased 2.6% after climbing 2.6% in June. Stripping out the volatile food and energy components, the so-called core PCE Price Index increased 0.3% last month. That followed a 0.3% rise in core inflation in June. "You have to love it when a plan comes together. Today's numbers on both the personal consumption, expenditure, and income, and spending, were right down the middle of the fairway," Art Hogan, chief markets strategist for B. Riley Wealth in Boston, said via email. "This leaves the door wide open for the Fed to cut rates in September and likely again in October and in December." Traders are now pricing in 89% odds of a cut by the Federal Reserve next month, up from 84% before the data. Traders had increased bets on more cuts after Fed Chair Jerome Powell last Friday adopted an unexpectedly dovish tone. The euro was last up 0.11% at $1.1696. The dollar index , which measures the greenback against a basket of currencies, fell 0.09% to 97.79. The Dow Jones Industrial Average (.DJI) , opens new tab fell 92.02 points, or 0.20%, to 45,544.88, the S&P 500 (.SPX) , opens new tab fell 41.60 points, or 0.64%, to 6,460.26 and the Nasdaq Composite (.IXIC) , opens new tab fell 249.61 points, or 1.15%, to 21,455.55. "Today is just weakness in the top of the market, in tech," said Zachary Hill, head of portfolio management at Horizon Investments in Charlotte, North Carolina. For the month, the S&P 500 rose 1.9%, the Dow rose 3.2% and the Nasdaq added 1.6%. Major U.S. financial markets will be closed for the Labor Day holiday on Monday. European shares closed lower, hitting their lowest in over two weeks, weighed down by British banks. Data released on Friday also showed French consumer prices rose slightly less than anticipated in August while Spain's European Union-harmonized 12-month inflation rate was steady at 2.7%. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab fell 4.77 points, or 0.50%, to 951.57. The pan-European STOXX 600 (.STOXX) , opens new tab index fell 0.64%. In Treasuries, l edged higher as traders closed positions ahead of the long weekend and repositioned for month-end. The yield on benchmark U.S. 10-year notes rose 1.6 basis points to 4.223%. The two-year note Fed Governor Christopher Waller on Thursday said he wanted to start cutting interest rates next month and "fully expects" more rate cuts to follow, to bring the Fed's policy rate closer to a neutral setting. Investors are keen to see U.S. jobs data for August, which is due next Friday. They also are watching for more news on U.S. President Donald Trump's attempt to fire Fed Governor Lisa Cook. A federal judge said on Friday she would set an expedited briefing schedule in Cook's bid to temporarily block Trump from firing her while she pursues a lawsuit that says he has no valid reason to remove her. Oil prices were lower. U.S. crude fell 59 cents to settle at $64.01 a barrel and Brent declined 50 cents to settle at $68.12. Spot gold rose 0.88% to $3,446.75 an ounce. https://www.reuters.com/world/china/global-markets-global-markets-2025-08-29/
2025-08-29 21:12
WASHINGTON, Aug 29 (Reuters) - U.S. Department of Homeland Security Secretary Kristi Noem said on Friday she fired two dozen members of the Federal Emergency Management Agency's (FEMA) IT department, citing "massive cyber failures." "While conducting a routine cybersecurity review, the DHS Office of the Chief Information Officer (OCIO) discovered significant security vulnerabilities that gave a threat actor access to FEMA’s network," the DHS said in a statement. Sign up here. "The investigation uncovered several severe lapses in security that allowed the threat actor to breach FEMA’s network and threaten the entire Department and the nation as a whole." No Americans were directly impacted and no sensitive data was extracted from any DHS networks, the statement added. https://www.reuters.com/world/us/dhs-chief-noem-fires-two-dozen-fema-employees-citing-cybersecurity-failures-2025-08-29/
2025-08-29 21:04
Aug 29 (Reuters) - The U.S. International Trade Commission voted on Friday to proceed with an investigation into whether solar panels from India, Laos and Indonesia are stifling domestic manufacturing, a key procedural step that could result in tariffs on those imports. WHY IT'S IMPORTANT The unanimous decision by the three-member panel is a victory for domestic solar manufacturers who say Chinese companies with operations in those countries receive unfair government subsidies and are selling their products below the cost of production in the United States. U.S. producers are seeking to protect billions of dollars of investment in American factories. Sign up here. KEY QUOTE "Today's ITC decision confirms what our petitions allege: U.S. solar manufacturers are being undercut and harmed by unfairly traded imports. Chinese-owned and other companies in Laos, Indonesia, and India are gaming the system with unfair practices that are gutting U.S. jobs and investment,” said Tim Brightbill, lead counsel to the Alliance for American Solar Manufacturing and Trade and partner at Wiley Rein LLP. CONTEXT The case was brought in July by the alliance, a coalition of U.S. solar manufacturers including First Solar (FSLR.O) , opens new tab and Hanwha's (000880.KS) , opens new tab Qcells. Imports from India, Indonesia, and Laos surged to $1.6 billion last year, up from $289 million in 2022, according to the group. Many of these imports are believed to have shifted from countries already subject to U.S. tariffs on Southeast Asian solar exports. WHAT’S NEXT The U.S. Department of Commerce will continue investigations into the imports, with preliminary determinations on countervailing, or anti-subsidy, duties expected around Oct. 10 and on antidumping duties around Dec. 24. https://www.reuters.com/sustainability/climate-energy/us-will-proceed-with-probe-solar-imports-india-laos-indonesia-2025-08-29/
2025-08-29 20:53
FEMA extends freeze on hiring any new employees until at least end of December Trump plans to phase out FEMA after 2025 hurricane season Agency says it is committed to delivering for Americans Former FEMA staff criticize Trump administration's inexperience WASHINGTON, Aug 29 (Reuters) - The U.S. Federal Emergency Management Agency has extended a hiring freeze through at least the end of this year, according to three sources familiar with the matter, as the peak of hurricane season approaches. The Trump administration froze hiring government-wide through October 15, with exceptions for public safety employees and a few other categories. FEMA is extending that freeze, according to the sources. Sign up here. The Department of Homeland Security "is committed to ensuring FEMA delivers for the American people," a FEMA spokesperson said in a statement. The spokesperson did not respond to a question about the hiring freeze. The agency is overseen by the Department of Homeland Security. News about the freeze trickled through the agency the same week that three dozen former and current FEMA employees signed a public letter of dissent against the agency’s leaders. The letter, sent by a mix of former political appointees and permanent staff, said the inexperience of the Trump administration’s top appointees could lead to catastrophe at the level of Hurricane Katrina. This week marks the 20th anniversary of the storm that devastated towns across the Gulf Coast. The Trump administration put staff named in the letter on leave. Trump said in June that he plans to phase out FEMA after the 2025 hurricane season. The peak of the Atlantic hurricane season is September 10. The end of FEMA would mean big changes for the millions of Americans who rely on the agency after hurricanes, wildfires, floods, tornadoes and other natural disasters each year. FEMA sends , opens new tab billions of dollars annually to states to shelter people who have lost their homes, distribute food and rebuild damaged buildings. Several high-ranking officials have left the agency since President Donald Trump took office, raising concerns about whether FEMA will be equipped to handle a large-scale disaster. In May, FEMA's then-acting administrator, Cameron Hamilton, was fired abruptly and replaced by David Richardson, a DHS official with no prior experience in managing responses to natural disasters. In an early meeting with staff, Richardson vowed to "run right over" employees who resisted reforms. https://www.reuters.com/legal/litigation/fema-extends-hiring-freeze-through-2025-hurricane-season-looms-2025-08-29/
2025-08-29 20:44
SAO PAULO, Aug 29 (Reuters) - Brazilian President Luiz Inacio Lula da Silva said on Friday he is in "no rush" to reciprocate tariffs imposed by the United States on goods from his country, and reiterated that his administration is open to negotiations. Lula's remarks came as his Foreign Ministry ordered trade body Camex to start analyzing whether a local reciprocity law could be used against the United States, after President Donald Trump slapped 50% duties on Brazilian goods. Sign up here. "This is a process that takes a bit of time," Lula said in an interview with Itatiaia radio. "We have to tell the United States that we also have actions we can take against them. But I am in no rush. What I want is to negotiate." Brazil's Foreign Trade Secretary Tatiana Prazeres said also on Friday that the country's reciprocity law ultimately aims to help Brazil come to an understanding with the Trump administration. Speaking at an event hosted by the American Chamber of Commerce-Brazil on Friday, Prazeres said any countermeasures would involve a lengthy process and require consultations with the United States. Officials from Latin America's largest economy have repeatedly complained about the lack of room to negotiate tariffs with U.S. counterparts, with a letter sent in May by Lula's administration proposing talks so far going unanswered. Prazeres stressed that the newly launched reciprocity law process is "meant to support Brazil's negotiating effort, while placing us at the table under different negotiating conditions." Washington raised tariffs on Brazilian goods to 50% from 10%, with Trump denouncing what he called unfair trade and accusing Brazil of a "witch hunt" against former President Jair Bolsonaro, his far-right ally on trial for allegedly plotting a coup. Key exports such as orange juice and aircraft were exempted from the tariff hike, but other major products sold by Brazil to the U.S., including coffee and meat, are now subject to the full tariff. https://www.reuters.com/world/americas/brazils-lula-no-rush-retaliate-against-us-tariffs-2025-08-29/
2025-08-29 20:35
WASHINGTON, Aug 29 (Reuters) - The Trump administration said on Friday it was cancelling $679 million in federal funding for 12 offshore wind projects, including $427 million for a California project. The move is the latest in a full-throated effort by the administration to undermine an industry that was central to former President Joe Biden's climate and energy agendas. Sign up here. U.S. Transportation Secretary Sean Duffy said the awards, made under the Biden administration, were a waste of funds "that could otherwise go towards revitalizing America's maritime industry." Last year, the department awarded $427 million to construct a new marine terminal to support construction and maintenance of offshore wind turbines in Humboldt County, California. The Humboldt Bay project was intended to be the first offshore wind terminal on the Pacific coast. The funds were aimed at revitalizing a defunct marine terminal to be used for wind turbine assembly, launch and project staging. A spokesperson for California Governor Gavin Newsom criticized the action as an example of the Trump administration "assaulting clean energy and infrastructure projects – hurting business and killing jobs in rural areas, and ceding our economic future to China." The department is also cutting a $47 million grant for an offshore wind logistics and manufacturing hub near the Port of Baltimore in Maryland and $48 million for an offshore wind terminal project in New York's Staten Island awarded in 2022, along with $33 million for a port project in Salem, Massachusetts, to redevelop a vacant industrial facility for offshore wind projects. Massachusetts Governor Maura Healey said cancelling the Salem grant will cost 800 construction workers their jobs. "The real waste here is the Trump administration canceling tens of millions of dollars for a project that is already under way to increase our energy supply," she said. U.S. agencies, including the departments of defense, energy and commerce, said they are reviewing offshore wind farms approved by the Biden administration along the Atlantic coast after two recent major cancellations. The transportation department has also canceled major grants for California high-speed rail and other environmental infrastructure projects. https://www.reuters.com/sustainability/climate-energy/trump-cancels-679-million-federal-funding-offshore-wind-projects-2025-08-29/
