2025-08-06 10:32

MUMBAI, Aug 6 (Reuters) - The Indian rupee edged higher on Wednesday, helped by the central bank keeping its key rate steady, though impending higher tariffs on shipments to the United States are likely to keep the currency under pressure. The rupee (.MERCINR) , opens new tab closed at 87.7325 against the U.S. dollar, up 0.1% from 87.8000 on Tuesday. Sign up here. The Reserve Bank of India's six-member rate-setting panel voted unanimously to hold the repo rate at 5.50% and maintain a "neutral" policy stance, even as economists expect steep U.S. tariffs on Indian goods and subdued inflation to open room for limited further easing. India faces the imposition of a 25% tariff on its shipments to the U.S. from Friday, and President Donald Trump has warned of "very substantial" additional levies because of New Delhi's oil imports from Russia. The rupee may breach the 88-mark next week based on the market signals on tariff threat, a trader with a state-owned bank said. It slid 1.18% against the dollar in the week through August 1, its sharpest weekly decline in nearly three years and would likely have hit a new record low if not for central bank interventions, according to traders. "Downward pressure on rupee after the 25% tariff also is a likely reason for not cutting rates," said Amit Bivalkar, founder director at Sapient Finserv. When the RBI cuts the repo rate, there is a risk of currency weakness as foreign investors may shift their capital to markets with higher interest rates. Sustained foreign outflows have been one of the reasons for the rupee’s weak performance this year, according to traders and analysts. India recorded net outflows of $800 million in the current financial year starting April through the end of July 31 due to outflows in the debt segment, the RBI governor said in his monetary policy announcement. https://www.reuters.com/world/india/india-rupee-rises-rbi-rate-pause-us-tariff-pressure-persists-2025-08-06/

2025-08-06 10:16

Drug Vraylar exempt from US tariffs, CEO confirms Tariffs may hinder some exports, women's healthcare expansion Orban slams Hungary subsidy to rival biotech firm for plant BUDAPEST, Aug 6 (Reuters) - Higher U.S. tariffs may make it challenging for Hungarian pharmaceutical company Richter (GDRB.BU) , opens new tab to export some products to the United States, but they won't apply to its flagship antipsychotic drug Vraylar, CEO Gabor Orban said on Wednesday. President Donald Trump said on Tuesday the United States would initially place a "small tariff" on pharmaceutical imports before hiking it to 150% within 18 months, and eventually to 250%, to help boost domestic production. Sign up here. However, a framework agreement between the U.S. and the European Union sets out that if the United States raises tariffs following its import investigation, they will be capped at 15%. Orban, speaking on an earnings call, said the 15% tariff was painful and would harm the competitiveness of the European pharmaceutical sector. Still, Orban said the tariffs do not affect Richter's flagship product, Vraylar, an antipsychotic drug produced and sold in the U.S. by AbbVie (ABBV.N) , opens new tab for the treatment of schizophrenia and bipolar disorder. Richter's total royalty income from Vraylar sales was 229 billion forints ($665.58 million) in 2024, up 18% from the previous year. Less than $50 million worth of Richter's exports to the U.S. will be impacted by the tariffs, but that could limit or halt some of its drug exports and affect plans for U.S. expansion in women's healthcare, Orban said. "There is no point in moving Richter to the U.S." he said. MAINTAINS FULL-YEAR FORECAST However, some parts of production, such as filling up syringes, could be shifted to U.S. partners to exempt those drugs from tariffs, he said. Gabor Orban also criticized the Hungarian government for giving a state subsidy to one of Richter's foreign competitors that is building a manufacturing plant in the town of Godollo, just outside Budapest. Orban did not name the company, but his remarks come after Foreign Minister Peter Szijjarto announced in April the government would give 7.5 billion forints ($21.80 million) to Singaporean pharma company Hongene Biotech, which is building its first European plant in Godollo. Richter reported second quarter results earlier on Wednesday, showing 11% growth in pharma revenue to 238 billion forints ($691.74 million) year-on-year. The company maintained its full-year forecast of around a 10% growth in revenue and adjusted profit, or EBIT, excluding the effect of foreign currency exchange rates. ($1 = 344.0600 forints) https://www.reuters.com/business/healthcare-pharmaceuticals/hungarys-richter-says-some-us-exports-face-tariff-challenges-flagship-drug-2025-08-06/

2025-08-06 09:27

Investor fund flows surged into Seoul market in July Long-awaited corporate governance reforms lure foreign buyers Analysts cool on stock gains as details of policy reforms emerge SINGAPORE, Aug 6 (Reuters) - South Korea's tax policies have thrown the outlook for Asia's best-performing major stock market into doubt, with investors assessing the impact of higher corporate tax and trading levies on the country's long-promised reforms. Foreign investment flows into South Korean equities totalled $4.52 billion in July, LSEG data showed - the fastest pace in almost a year and a half - as the prospect of corporate reforms and a trade deal with the Trump administration lured overseas money. Sign up here. However, the KOSPI index (.KS11) , opens new tab, which had risen 33.3% so far this year, leading gains across the region, experienced its sharpest one-day drop since April on Friday. The index slumped 3.9% following the announcement of tax measures. Foreign analysts are uncertain if the "Korea discount" - a steep valuation gap with other Asian markets - will narrow as the government begins to implement reforms, but some institutional investors regard the changes as positive in the long run. Many of the country's biggest multinationals, the family-owned conglomerates known as chaebols, tightly control voting power and lack independent boards to safeguard minority investor interests. "We've been victims of poor corporate governance in Korea for over a decade," said Jonathan Pines, head of Asia ex-Japan at Federated Hermes. "Even though the market is up significantly, we believe it has further to go," he said. "The news flow is likely to remain positive, and Korean market valuations are still among the cheapest in the world." Korean stocks trade at a 12-month forward price-to-earnings ratio of 10.1, the lowest of any major market in Asia, according to data from Goldman Sachs. The investment bank gives the country an "overweight" rating and a target level of 3,500 in the next year, implying a 9.4% gain from current levels. South Korean equities gained momentum after the Financial Services Commission introduced its Corporate Value-Up Programme in February last year, aimed at improving corporate governance standards. The rally last month culminated with the announcement of a trade deal between Seoul and Washington on July 31, with a summit planned this month to finalise the agreement. However, tax reforms last Friday prompted mixed reactions. The government raised the peak corporate tax rate to 25% from 24% and the securities transaction tax to 0.20% from 0.15%. "While in general we think that tax changes do not impact markets for very long, we do think these measures are 180 degrees opposed to the sentiment of the 'Korea Up' programme, which was meant to boost valuation," Citi said in a note dated August 3, cutting its allocation. "Given how important this programme was in the recent large KOSPI outperformance, we think more downside is likely." Since then, the index has recovered some ground, advancing 2.5% this week. The reforms "proved underwhelming for the market", J.P. Morgan analysts said in a note. "Positive news on reform implementation, additional earnings improvements or repatriation flows will be needed to further the re-rating." Others were more sanguine. The creation of a separate tax rate for dividend income could boost the payout ratio of Korean companies, Societe Generale analysts said. "While the taxation details came with some negative surprises, we view the tax reform as a win-some-lose-some event, and not entirely a lose-lose situation," they said. Activist investors and corporate governance advocates remain hopeful about reforms under President Lee Jae-myung. Manoj Jain, co-CIO of Hong Kong-based Maso Capital, remains cautiously optimistic. "In conversations with management teams, pleasingly, we have sensed a change in tone where boards are now more receptive to shareholder views and feedback," Jain said. "We are in the second inning in terms of corporate governance reform," said Namuh Rhee, chairman of the Korean Corporate Governance Forum. "The biggest headwind is strong lobbying by chaebol and their lobbying agencies." The government may yet amend its tax plans. Jung Chung-rae, the leader of the ruling Democratic Party, said on Monday the party will hold internal discussions over the proposed levies. Finance minister Koo Yun-cheol, facing a grilling from Korean opposition lawmakers in parliament on Wednesday, said he would listen to public opinion, including a suggestion from a lawmaker to revise the rules constituting "large shareholders" subject to capital gains taxes. https://www.reuters.com/sustainability/sustainable-finance-reporting/blowout-south-korea-stock-rally-knife-edge-over-tax-plans-2025-08-06/

2025-08-06 08:12

KYIV, Aug 6 (Reuters) - Russia has struck a gas facility in Ukraine's southern Odesa region, undermining preparations for winter, President Volodymyr Zelenskiy said on Wednesday. He said that gas infrastructure had been attacked in the village of Novosilske on the border with Romania, where the Orlovka interconnector, through which Ukraine receives gas via the Transbalkan route, is located. Sign up here. "This was a deliberate blow to our preparations for the heating season, absolutely cynical, like every Russian blow to the energy sector," Zelenskiy said on Telegram. Reuters could not independently confirm details of the attack and there was no immediate comment from Russia. Ukraine has faced a serious gas shortage since a series of devastating Russian missile strikes this year, which significantly reduced domestic gas production. Russia has repeatedly denied targeting civilians since launching its full-scale invasion of Ukraine more than three years ago, but says infrastructure such as energy systems are legitimate targets because they help Ukraine's war effort. Earlier on Wednesday, the governor of the southern Odesa region reported an attack on gas infrastructure and the main gas pipeline, saying that work was under way to pump gas out of the pipeline. Ukrainian energy officials did not say whether the interconnector was damaged and whether gas would continue to be pumped. According to the Ukrainian transit operator, 0.4 million cubic metres of gas was scheduled to be pumped through Orlovka on Wednesday. Last month, Ukraine pumped a small test volume of Azerbaijani gas through the Transbalkan route for the first time and announced plans to significantly increase gas imports from Azerbaijan's SOCAR energy firm. The Transbalkan route allows gas delivery from Greece via Bulgaria and Romania to Ukraine. Kyiv has called the route "extremely important", as it provides access to liquefied gas from Greek and Turkish LNG terminals, Azerbaijani and Romanian pipeline gas and, potentially, to Bulgarian offshore gas. https://www.reuters.com/business/energy/zelenskiy-says-russia-hit-gas-facility-odesa-region-undermine-preparation-winter-2025-08-06/

2025-08-06 07:57

Q2 adjusted net income $3.6 billion, as expected Crude prices have tumbled 20% vs a year ago Refining and chemicals earnings drop 39% vs a year ago Net debt jumps 89% to $25.9 billion PARIS, July 24 (Reuters) - (This July 24 story has been corrected to show that the disposals referred to include assets in Argentina, not Brazil, in paragraph 9) TotalEnergies (TTEF.PA) , opens new tab reported a 23% fall in second-quarter earnings on Thursday, the French oil major's worst performance in four years but in line with expectations, as lower oil and gas prices outweighed a rise in production and power sales. Sign up here. Adjusted net income fell to $3.6 billion for the three months to June 30, down from $4.7 billion a year earlier and $4.2 billion in the first quarter. Shares were down 4.1% to 51.17 euros at 1335 GMT. CEO Patrick Pouyanne told analysts on a call that the company could maintain shareholder returns in a low oil price environment, as several expressed concern about a sharp increase in the company's net debt. Brent crude prices have fallen 20% from a year ago, reaching $67.9 per barrel in the second quarter of 2025, as members of the Organization of the Petroleum Exporting Countries and allies such as Russia started to unwind output cuts of 2.17 million barrels per day in April. TotalEnergies' net debt leapt 89% year-on-year to $25.9 billion, pushing gearing - a measure of debt to equity - to 22.6% including leases, as the company made $2 billion of acquisitions and saw its working capital increase - even as it extended a $2 billion share buyback into the third quarter. "We have a strong balance sheet ... and we are committed to $2 billion in quarterly buybacks at $70 per barrel," Pouyanne said on a call with analysts. The CEO added that according to the company's definition of normalised gearing, the ratio of debt to equity was 15%. He said that 15% figure would not increase this year, as the company finalised sales of stakes in renewable assets and disposals of oil and gas assets in Nigeria, Argentina and other areas, expected to bring in some $3.5 billion. TotalEnergies' integrated power business beat forecasts with a 14% rise in quarterly profit to $574 million, but was unable to offset poorer performance across nearly all other units. Refining and chemicals earnings fell 39% from a year ago, the company said. TotalEnergies' margin for refining crude into fuels dropped 21% from a year ago to $35.3 per ton, despite a slow recovery in the first half of 2025 from a collapse last year due to sagging demand and an increase in global competition. The company said it expected refining margins to rise above $50 per ton in the third quarter due to increased fuel demand during Europe's summer driving season. Profit from its integrated liquefied natural gas unit was down 9.6% year-on-year and 20% lower than the first quarter of 2025, as lower prices and less volatility meant traders could not profit from price changes. TotalEnergies also forecast a 3% increase in hydrocarbon output in the third quarter against the same period a year ago. https://www.reuters.com/business/energy/totalenergies-maintains-buybacks-despite-profit-drop-rising-debt-2025-07-24/

2025-08-06 07:40

Vietnam's January-July trade surplus with U.S. widens to $74.6 billion Imports from U.S. in January-July rise 22.7% after tariff cuts China remains Vietnam's largest import source at $101.5 billion in January-July HANOI, Aug 6 (Reuters) - Vietnam reported robust trade activity in the first seven months of this year, with imports of goods from the United States rising by nearly 25% after its March tariff cuts on several American products, government data showed on Wednesday. Exports in the January-July period rose 14.8% over the same period of 2024 to $262.44 billion, while imports were up 17.9% to $252.26 billion, translating into a trade surplus of $10.18 billion, the National Statistics Office said in a report. Sign up here. Vietnam, a regional manufacturing powerhouse, said it has been seeking to clinch a trade deal with the United States, its largest export market, although a month ago Donald Trump announced that he would put a 20% tariff on many Vietnamese exports and that Vietnam could import U.S. products with a zero percent tariff. Vietnam took several measures to facilitate its trade negotiations with Trump, including announcing in March that it would cut its tariffs on several American products, including LNG, automobiles, ethanol and farm produce. As a result, imports from the U.S. in the January-July period rose 22.7% from a year earlier to $10.54 billion, the government's Customs Department said in a separate report on Wednesday. Vietnam's exports to the U.S. in the first seven months of 2025 also rose sharply from a year earlier as exporters from Vietnam were reportedly rushing to deliver their products before the tariff took effect. Shipments from Vietnam to the U.S. in the January-July period rose 27.8% to $85.12 billion, the Customs Department report said. Vietnam's trade surplus with the U.S. widened to $74.6 billion in the period from $58 billion a year earlier. Both the NSO and the Customs data showed China was Vietnam's largest source of imports in the first seven months of this year, with a value of $101.5 billion, up from $79.8 billion a year earlier. China is Vietnam's largest trading partner and a key source of materials and equipment for the Southeast Asian country's manufacturing industries. The NSO report showed Vietnam's overall exports in July rose 16% from a year earlier to $42.27 billion, while industrial production increased by 8.5% from a year earlier. Imports in July rose 17.8% to $40 billion, resulting in a trade surplus of $2.27 billion for the month. The government said on Monday that imports and exports both increased sharply because firms were ramping up production to meet new orders. Consumer prices in July rose 3.19% from a year earlier, the NSO said, adding that retail sales in July were up 9.2%. https://www.reuters.com/world/asia-pacific/vietnam-reports-strong-january-july-trade-data-imports-us-rise-227-2025-08-06/