2025-08-27 09:20
LONDON, Aug 27 (Reuters) - British producer output price inflation rose to a two-year high of 1.9% in June, up from 1.3% in May, according to preliminary official data , opens new tab which adds to signs of inflationary pressures facing the British economy. Britain's Office for National Statistics suspended the publication of PPI data in March after discovering calculation errors dating back to 2020. Wednesday's figures represent interim data before regular publication resumes in October. Sign up here. In July, the ONS said initial analysis showed that producer price inflation in previous years had been higher than originally calculated. Wednesday's figures showed further upward revisions, with a previously reported 0.5% producer output price inflation rate for the year to April revised up to 0.7%. However, the ONS said the overall changes were in line with its previous expectations. Producer input prices in the year to June were down by 1.0% in the year to June after a similar decline in May, which the ONS said was driven by a 24.1% annual drop in the cost of crude oil and natural gas. Producer prices data is used by economists including those at the Bank of England to judge the strength of underlying inflationary pressures in the economy and their likely impact on consumer prices. British CPI rose to an 18-month high of 3.8% in July - the highest among major advanced economies - and the Bank of England forecasts it will reach 4% in September. PPI data is also used for inflation adjustments in British gross domestic product, trade and construction statistics. The ONS said it expected the impact of the changes on published GDP data for 2025 to be "negligible". https://www.reuters.com/world/uk/uk-producer-price-inflation-rises-two-year-high-june-2025-08-27/
2025-08-27 08:35
Trump's effort to fire Fed governor sets up legal fight Dollar recoups losses but Fed independence worries linger French political developments in focus for euro MUMBAI, Aug 27 (Reuters) - The dollar firmed against major currencies on Wednesday as investors turned their focus to upcoming U.S. economic data for policy cues, even as worries persist over the Federal Reserve's independence. The euro touched its weakest level since August 6 and was last down 0.4% at $1.1595. Sterling declined 0.3% to $1.3442, and the Swiss franc and the Japanese yen both slipped by about 0.4% against the dollar. Sign up here. Although the dollar appears to have shaken off the immediate worries over Fed independence that followed U.S. President Donald Trump's attempt on Monday to fire Governor Lisa Cook, the U.S. Treasury yield curve has steepened. Cook's lawyer later said she would file a lawsuit to prevent her ouster, kicking off what could be a protracted legal fight. Lee Hardman, senior currency analyst at MUFG, said the U.S. dollar's resilience could reflect that market participants are waiting for confirmation from the release of the August non-farm payrolls data and inflation reports that the Fed will "follow through with plans to resume rate cuts next month". Since his return to the White House this year, Trump has relentlessly pressured the central bank to lower interest rates. The two-year U.S. Treasury yield , which typically reflects near-term rate expectations, bottomed at 3.6450% on Wednesday, its lowest since May 1, while the yield of its 30-year counterpart was last up 5 basis points at 4.9562%. Money markets are pricing in a 88% chance of a 25 basis point rate cut in September, according to the CME's FedWatch tool. Elsewhere, political developments in France are the focus for the euro as Prime Minister Francois Bayrou battles to save his minority government ahead of a September 8 confidence vote over budget cuts. A majority of French people want new parliamentary and presidential elections, opinion polls showed on Wednesday. "There’s a clear danger that this mini crisis lasts longer, but even so, we expect the focus to switch back firmly to the U.S. economy next week," Kit Juckes, chief FX strategist at Societe Generale said in a note. Investors will next week examine U.S. labour market and business survey data for clues on the future path of Fed policy. "With Euro under a bit of a cloud, we would still rather go into next week-long JPY and AUD, though CHF appeals too," the note said. French government bonds steadied on Wednesday, a day after the yield on the 10-year benchmark bond climbed to its highest level in five months. Meanwhile, preliminary data released on Wednesday showed that British producer output price inflation rose to a two-year high of 1.9% in June, up from 1.3% in May, adding to signs of inflationary pressures in the economy. https://www.reuters.com/world/middle-east/dollar-firms-worries-linger-over-fed-independence-2025-08-27/
2025-08-27 07:51
SINGAPORE, Aug 27 (Reuters) - The former head of Vitol's Asia region liquefied natural gas operations will join U.S. oil major ExxonMobil (XOM.N) , opens new tab to lead its global LNG trading and Asia Gas and Power divisions. Sid Bambawale will begin his role at ExxonMobil in Singapore on September 1 after stepping down at Vitol in December 2024 to take a career break, he said in a LinkedIn post on Wednesday. Sign up here. He spent over eight years at Vitol, the world's top energy trader, and held LNG trading roles at Chevron and Citi prior to that, according to his LinkedIn profile. Both ExxonMobil and Vitol did not immediately respond to a request for comment. https://www.reuters.com/business/energy/vitols-former-asia-lng-lead-joins-exxonmobil-head-global-lng-trading-2025-08-27/
2025-08-27 07:49
MELBOURNE, Aug 27 (Reuters) - Anglo-Australian miner Rio Tinto (RIO.AX) , opens new tab named Matthew Holcz to lead its iron ore division, its most profitable, and will streamline operations into three business units - iron ore, aluminium and lithium, and copper, it said on Wednesday. The move comes as newly minted CEO Simon Trott, who had previously led the iron ore business, seeks to simplify the miner's structure and sharpen the focus on its most profitable assets, a shift previously flagged by Reuters. Sign up here. Holcz was named chief executive of the unified iron ore division, integrating Rio Tinto's Western Australian operations with Canada's iron ore operations in changes taking effect on Wednesday, the company said in a filing to the ASX. The division will also include the Simandou project in Guinea when it is completed. Jerome Pecresse, who leads the aluminium division, will also take on lithium, including the miner's recently acquired Arcadium Lithium business. Katie Jackson will continue to head the copper division focused on the ramp up of the Oyu Tolgoi mine in Mongolia. Outside the three core units, Rio Tinto's borates and iron and titanium businesses will be transferred to Chief Commercial Officer Bold Baatar's portfolio for strategic review, with further updates on their future to be provided. Rio Tinto has been considering a sale of the titanium unit amid weak prices and low returns. The business is currently part of Sinead Kaufman's Minerals division. With the changes, Kaufman will be leaving Rio Tinto at the end of October after almost 30 years, the company said. The company will "conclude" the Chief Executive Australia role, held by Kellie Parker, which covers health and safety and mine closures, it said. Parker will remain in the role during the transition to transfer her responsibilities, the company said. https://www.reuters.com/world/asia-pacific/rio-tinto-names-new-iron-ore-chief-restructures-into-three-business-units-2025-08-27/
2025-08-27 07:40
Kazakhstan's BTC oil flows suspended from early August - sources Organic chloride was detected in Azeri BTC crude last month MOSCOW, Aug 27 (Reuters) - Kazakhstan is holding talks to resume oil transit via the Baku-Tbilisi-Ceyhan pipeline (BTC), Russian state news agency TASS reported on Wednesday, citing the Central Asian country's energy ministry. It was the first time that Kazakhstan had confirmed any disruption to its exports via the BTC, which has been affected by problems with tainted Azerbaijani oil. Industry sources say Kazakh supplies via the route were suspended in early August. Sign up here. Organic chloride was detected in Azerbaijani BTC crude cargoes last month, pushing price differentials to a four-year low and delaying loadings. Azerbaijani BTC loadings from Ceyhan totalled 423,000 barrels per day (bpd) in July, according to data from analytics firm Kpler, below the 561,000 bpd scheduled on the loading programme for the month. Organic chlorides are used to boost extraction from oilfields but must be removed before oil enters pipelines as they can damage refinery equipment. "There was a report about the suspension (of deliveries via BTC). But I know that now KazMunaiGas is negotiating the earliest possible resumption along this route," Kazakh Energy Minister Yerlan Akkenzhenov was quoted as saying by TASS. The 1,768-km (1,100 miles) BTC pipeline, managed by BP (BP.L) , opens new tab, brings oil from the Caspian oilfields of Azerbaijan and Kazakhstan to the Turkish port of Ceyhan. Usage of the route is part of Kazakhstan's efforts to bypass Russia in exporting its energy. More than 80% of Kazakhstan's oil exports are shipped by the Caspian Pipeline Consortium via a Russian Black Sea port. Kazakhstan increased oil exports via the BTC in the first half of 2025 by 12% compared to the same period last year to 785,000 tons (34,000 barrels per day), according to state statistics. Kazakh minister Akkenzhenov was also cited by TASS as saying that supplies of Kazakh oil to Europe are proceeding without delays despite recent Ukrainian attacks on the Druzhba pipeline. https://www.reuters.com/business/energy/kazakhstan-talks-resume-oil-transit-via-btc-pipeline-tass-reports-2025-08-27/
2025-08-27 07:29
Non-integrated operator YNCC may shut 1-2 crackers - Citi SK Innovation mulls options including possible cracker closure Naphtha demand to be hit harder than LPG - Woodmac Polyolefins, aromatics, derivatives output to be affected - ICIS SEOUL/SINGAPORE, Aug 27 (Reuters) - Small and stand-alone naphtha crackers are likely to shut while some plants could merge as part of an overhaul of South Korea's oversupplied petrochemical sector, analysts said, which will cut naphtha demand at the world's largest importer of the fuel. Ten South Korean petrochemical companies agreed to reduce their naphtha-cracking capacity by between 2.7 million and 3.7 million metric tons per year, government officials said last week, to cull surplus supply and improve profit margins. Sign up here. The cuts would be equivalent to about 25% of the country's overall capacity, including the Shaheen project due to start up next year. The companies need to submit an outline by the end of the year on steps they plan to take, South Korea's industry ministry said. An SK Innovation spokesperson said the company is considering various options including the possible closure of a cracker. Its subsidiary SK Geo Centric operates a 660,000-tons per year cracker at Ulsan. Analysts say Yeochun NCC Co (YNCC), a joint venture between DL Chemical and Hanwha Solutions (009830.KS) , opens new tab and the country's third-largest ethylene producer, may have to shut one or two of its three crackers. "We see YNCC as the least competitive due to weak financials and (a lack of) integration," Citi analysts led by Oscar Yee said in a note. YNCC's debt-to-equity ratio hit 249% by the end of the first half of 2025, while it is a major net ethylene seller, they added. Plants that may be permanently closed include YNCC's No. 3 cracker which was shut in August and possibly a second YNCC unit, they said. YNCC did not respond to phone calls from Reuters. A DL Chemical spokesperson said nothing has been decided on restructuring including how to handle YNCC. "The industry should participate in (the) restructuring, making sure there's no free rider," he said. A Hanwha spokesperson said the company is considering various options and plans to submit their plan to the government as soon as possible. HD Hyundai (267250.KS) , opens new tab is looking to acquire Lotte Chemical’s (011170.KS) , opens new tab naphtha cracker, or the companies may merge their cracker operations, trade sources have said. Lotte, South Korea's second-largest ethylene producer, declined to comment, while HD Hyundai said nothing has been decided yet. Some companies may choose to mothball smaller, inefficient units that are due for maintenance, instead of investing further, Wood Mackenzie principal analyst Catherine Tan said. NEW PLANT LOOMS The restructuring is likely to hit demand for naphtha, which is used to produce 82% of the country's ethylene, harder than liquefied petroleum gas, Tan said. Importing U.S. ethane to make ethylene would be an option but that would require investments in new infrastructure, she added. ICIS principal analyst Salmon Lee and senior analyst Amy Yu expect South Korea's capacity for polyolefins, aromatics and other derivatives such as monoethylene glycol to fall in line with the ethylene capacity rationalisation. However, Woodmac's Tan said the voluntary measures would mean "some hard bargaining and tough negotiations are to be expected as companies may want to wait and see who flinches and bows out first". The start-up of the Shaheen project by S-Oil (010950.KS) , opens new tab and its majority owner, Saudi Aramco (2222.SE) , opens new tab, to produce 1.8 million tpy ethylene next year will exacerbate oversupply and could limit the impact from capacity cuts, analysts said. Consultancy FGE expects South Korea's restructuring to take a year to 18 months, Armaan Ashraf, global head of natural gas liquids, said. "This wouldn't save the market by any means, but it would help chip away at overcapacity alongside consolidation by other players such as Europe, Japan and potentially China’s next 5-year plan," he added. https://www.reuters.com/business/energy/south-korea-petrochemical-overhaul-likely-shut-small-stand-alone-naphtha-2025-08-27/
