2025-12-03 00:46
Strength seen across businesses, governments and consumers Quarterly rise weighed by large drawdown in inventories Nominal growth at staggering 5.4% for Q3 SYDNEY, Dec 3 (Reuters) - Australia's economy grew at the fastest annual pace in two years in the September quarter, fuelled by business, government and consumer spending as markets wagered the next move in interest rates could be up, rather than down. Data from the Australian Bureau of Statistics showed real gross domestic product (GDP) in the third quarter climbed by 2.1% from the same period a year earlier, the fastest since mid-2023 and above the RBA's estimate of trend growth of 2%. Sign up here. GDP rose by 0.4% from the prior quarter, missing forecasts for a gain of 0.7% and slowing from an upwardly revised 0.7% in the previous quarter. Inflation measures in the report also remained high just as the central bank chief has warned the economy could be already at its potential growth limit. "The economy is in good shape. Slightly too good, in fact, for the RBA," said Harry Murphy Cruise, head of economic research for Oxford Economics Australia. "With inflation rising and domestic momentum building, the central bank has its work cut out for it. Rate cuts are off the table for some time, and a hike next week to nip inflation in the bud can't be ruled out." The RBA board meets next Tuesday and is considered certain to hold rates at 3.60%, and perhaps turn more hawkish on the outlook for further easing. After the data was released, the Australian dollar climbed 0.2% to $0.6579, while three-year government bond futures wobbled but were last down 6 ticks to 95.99, the lowest since January. Swaps imply the Reserve Bank of Australia will remain on hold until late next year, but are now fully pricing in a rate hike by the end of 2026. The slowdown in quarter-on-quarter growth was mostly due to an outsized drag in inventories, which took off 0.5 percentage points from GDP. But, in a sign of underlying strength, domestic final demand picked up sharply to add 1.1 ppt on a quarterly basis to growth. BUSINESSES JOIN GROWTH STORY Private investment added 0.5 ppt in quarterly terms to growth, reflecting the ongoing expansion in data centres, the ABS said. That represents a long-delayed recovery in business investment after three rate cuts this year. Government spending also added 0.2 ppt to the quarterly growth, after barely contributing anything the previous quarter. Household consumption added 0.3 ppt, driven mostly by essential spending. The household savings ratio climbed to 6.4%, from an upwardly revised 6.0%, suggesting consumers still had plenty of spending power left. The robust domestic demand is one reason that inflation has been hotter than expected in recent months. Australia's inflation jumped to 3.8% in October while the trimmed mean measure of core inflation also climbed back to above the 2%-3% the RBA is targeting. Measures of inflation in the report showed the price deflator rose 1.3% in the quarter, which lifted nominal annual GDP growth to 5.4%. "There’s little dovish evidence for the RBA besides some easing of unit labour costs and slight improvement in productivity," said analysts at Citi Australia in a note to clients. "The relatively solid domestic demand in Q3 sets up for a tantalising Q4, where households are expected to unleash spending on big ticket items during the sale events. This keeps us wary of hawkish risks ahead." https://www.reuters.com/world/asia-pacific/australia-economy-grows-04-q3-misses-forecasts-2025-12-03/
2025-12-03 00:12
NEW YORK, Dec 2 (Reuters) - A Texas Christian summer camp for girls, where 27 campers died in a July 4 flash flood, announced plans to reopen in May at a nearby location with enhanced safety measures, despite earlier criticism from a family whose daughter was never found. The century-old Camp Mystic has remained closed after the girls were killed when floodwaters raged through the retreat on the banks of the Guadalupe River before dawn following torrential rains. Sign up here. The camp announced on Tuesday that it plans to reopen in late May and operate to early August for six terms, each lasting 10 days. "We are preparing for next summer at Camp Mystic Cypress Lake and we know that safety is of the utmost concern to all of you, as it is for us," the statement read. The location expected to host campers is about 500 yards (0.5 kilometers) from the site that was destroyed by flooding on July 4. The statement mentioned summer camp safety bills introduced by Texas authorities after the fatal flooding. "We thank the Heaven’s 27 families and our state leaders for passing legislation to help make camps safer, and it is our goal not only to be in compliance with the new camp safety laws, but to exceed their requirements," Camp Mystic said. The new safety system includes flood-warning river monitors, cabin speakers, and higher-capacity generators that will help maintain communication with emergency personnel in case of an emergency. The plan to reopen the camp, first announced in September, drew criticism from the parents of one of the victims, Cile Steward, the only child, who remains missing after the flood. "You are preparing to invite children to swim in the very river that may still hold our daughter's body," said the letter cited by KHOU 11 News in September. "We understand that deciding whether or not to return to camp this summer will be a difficult decision for many families," Camp Mystic said in the Tuesday statement. https://www.reuters.com/world/us/texas-camp-reopen-after-flood-that-killed-27-children-2025-12-03/
2025-12-02 23:49
Boeing expects higher deliveries of jets in 2026 Bitcoin stabilizes following massive losses Warner Bros advances on reports of Netflix offer Indexes up: Dow 0.39%, S&P 500 0.25%, Nasdaq 0.59% NEW YORK, Dec 2 (Reuters) - U.S. stocks closed higher to record their sixth gain in seven sessions in muted trading on Tuesday, buoyed by gains in technology shares as expectations the Federal Reserve will cut interest rates next week remain elevated. Equities declined on Monday amid soft data on the manufacturing sector, a jump in U.S. Treasury yields as Japanese bond yields surged, and a drop in bitcoin and crypto-related stocks. Sign up here. But with a dearth of economic data for the session, the rise in bond yields eased and bitcoin rebounded, which enabled stocks to recover somewhat as the focus shifted to the Fed. "It's possible that both of those things are adding a little bit of volatility to the market at a time when there's kind of a catalyst vacuum until the Fed," said Ross Mayfield, investment strategist at Baird in Louisville, Kentucky. "On the flip side, it seems like largely you can take away positive consumer read-throughs on some of these Black Friday, Cyber Monday, data points. I'm more content or happier to see the strength in the consumer versus some of these things happening under the surface with yields and bitcoin. Those are things that will pass." BOEING SURGES ON FORECAST The Dow Jones Industrial Average (.DJI) , opens new tab rose 185.13 points, or 0.39%, to 47,474.46, the S&P 500 (.SPX) , opens new tab gained 16.74 points, or 0.25%, to 6,829.37 and the Nasdaq Composite (.IXIC) , opens new tab gained 137.75 points, or 0.59%, to 23,413.67. Boeing (BA.N) , opens new tab shot up 10.1% as the biggest boost to the Dow, accounting for roughly 117 points to the upside, after the planemaker forecast higher deliveries for its 737 and 787 jets next year. Boeing also lifted the S&P 500 industrials (.SPLRCI) , opens new tab index 0.9%, making it the best performing of the 11 major S&P sectors. Also higher was tech (.SPLRCT) , opens new tab, which rose 0.8%, fueled by gains in megacaps Apple (AAPL.O) , opens new tab, Nvidia (NVDA.O) , opens new tab and Microsoft (MSFT.O) , opens new tab of about 1% each, while Intel (INTC.O) , opens new tab shares jumped. Recent data has pointed to a gradually cooling economy, and policymakers had urged caution on rate cuts, warning that inflation pressures could be rekindled. But comments from several Fed officials in recent days sent market expectations soaring for a rate cut at the central bank's December meeting. Expectations for a rate cut of 25 basis points at the Fed meeting are at 89.2%, according to CME's FedWatch Tool , opens new tab, up from 63% a month ago. Friday's release of the Personal Consumption Expenditures Index, the Fed's preferred inflation gauge, could further solidify expectations for the central bank's policy call next week. Markets were also eyeing who may succeed Fed Chair Jerome Powell when his term ends next year, with reports suggesting White House economic adviser Kevin Hassett is a top contender. Trump said on Tuesday he would announce his selection early next year. On the downside, Procter & Gamble (PG.N) , opens new tab declined 1.1% after the consumer packaged goods company flagged a hit from the U.S. government shutdown. Warner Bros Discovery (WBD.O) , opens new tab climbed 2.8% after reports said it received a second round of bids, including an offer from Netflix (NFLX.O) , opens new tab. Crypto stocks advanced, including Strategy (MSTR.O) , opens new tab, up 5.8%, and Coinbase (COIN.O) , opens new tab, up 1.3%, as bitcoin prices rebounded after its largest dollar loss since May 2021 in the previous session. Advancing issues outnumbered decliners by a 1.01-to-1 ratio on the NYSE, while on the Nasdaq, declining issues outnumbered advancers by a 1.07-to-1 ratio. The S&P 500 posted 11 new 52-week highs and three new lows while the Nasdaq Composite recorded 70 new highs and 100 new lows. Volume on U.S. exchanges was 15.35 billion shares, compared with the 18.42 billion average for the full session over the last 20 trading days. https://www.reuters.com/business/us-stock-futures-steady-after-wall-st-selloff-eyes-fed-2025-12-02/
2025-12-02 23:16
Putin speaks to Witkoff and Kushner for five hours Kremlin says no compromise reached but talks constructive Kremlin says Russia and U.S. did not agree on territory Zelenskiy warns against dealing behind Ukraine's back Trump says the war is 'a mess' MOSCOW, Dec 3 (Reuters) - Russia and the U.S. did not reach a compromise on a possible peace deal to end the war in Ukraine after a five-hour Kremlin meeting between President Vladimir Putin and Donald Trump's top envoys, the Kremlin said on Wednesday. Trump has repeatedly complained that ending Europe's deadliest conflict since World War Two has been one of the elusive foreign policy aims of his presidency. The U.S. president has at times scolded both Putin and Ukrainian President Volodymyr Zelenskiy. Sign up here. Talks in Moscow between Putin and Trump's special envoy, Steve Witkoff, and son-in-law Jared Kushner went past midnight. Afterward, Putin's top foreign policy aide, Yuri Ushakov, said "Compromises have not yet been found. "There is still a lot of work to be done," Ushakov told reporters at a briefing in the Kremlin. Putin reacted negatively to some U.S. proposals, Ushakov said. Witkoff went to the U.S. embassy in Moscow after the talks to brief the White House, Ushakov said. Ushakov added that a meeting between Putin and Trump was not currently planned, though he said the talks were constructive and that there were huge opportunities for U.S.-Russian economic cooperation. NO FURTHER AWAY FROM PEACE Ushakov said Putin had sent a series of important signals and his greetings to Trump, but that the sides had agreed not to disclose details to the media. He added that they had discussed the "territorial problem", Kremlin shorthand for Russian claims to the whole of Donbas, though Ukraine controls at least 5,000 square km (1,900 square miles) of the area which Russia claims as its own. Almost all countries recognise Donbas as part of Ukraine. "Some American draft proposals look more or less acceptable, but they need to be discussed," Ushakov said. "Some of the formulations that have been proposed to us are not suitable for us, that is - the work will continue." Witkoff, a billionaire U.S. real estate developer who has known Trump since the 1980s, and Kushner, the husband of Trump's daughter Ivanka, began talks in the Kremlin after a stroll across Red Square past the mausoleum of Soviet founder Vladimir Lenin to the towers of the Kremlin. They talked with Putin, Ushakov and Putin's envoy Kirill Dmitriev, via interpreters. "Our people are over in Russia right now to see if we can get it settled. Not an easy situation, let me tell you. What a mess," Trump said on Tuesday in Washington, adding that there were casualties of 25,000 to 30,000 per month in the war. Russia invaded Ukraine in February 2022, triggering the biggest confrontation between Moscow and the West since the depths of the Cold War. EUROPEAN POWERS WORRIED BY U.S. EFFORTS A leaked set of 28 U.S. draft peace proposals , opens new tab emerged in November, alarming Ukrainian and European officials who said it bowed to Moscow's main demands. European powers then came up with a counter-proposal, and at talks in Geneva, the U.S. and Ukraine said they had created an "updated and refined peace framework" to end the war. Zelenskiy, speaking in Dublin, said everything would depend on the talks in Moscow but that he was afraid the U.S. could lose interest in the peace process. "There will be no easy solutions ... It is important that everything is fair and open, so that there are no games behind Ukraine's back," he said. Just before the Kremlin meeting with Witkoff, Putin said Russia did not want war with Europe, but that if Europe started one, it would end so swiftly that there would be no one left for Russia to negotiate with. Putin threatened to sever Ukraine's access to the sea in response to drone attacks on tankers of Russia's "shadow fleet" in the Black Sea. Ukraine's Foreign Minister, Andrii Sybiha, said Putin's remarks showed he was not ready to end the war. https://www.reuters.com/world/china/putin-witkoff-discuss-peace-options-ukraine-past-moscows-midnight-2025-12-02/
2025-12-02 23:09
CHICAGO, Dec 2 (Reuters) - Shipments of U.S. crops to China are accelerating after a tense tariff war had stalled trade for months, with at least six bulk cargo vessels scheduled to load with soybeans at Gulf Coast terminals through mid-December, according to a shipping schedule seen by Reuters on Tuesday. A seventh U.S. soybean cargo was loaded over the past weekend and is already en route to China, the first such shipment since May. Sign up here. U.S. farmers and grain traders have been waiting for shipments to begin after trade talks between presidents Donald Trump and Xi Jinping in South Korea in late October and, according to the White House, a vow by Beijing to buy 12 million metric tons by the end of the year. Beijing has not confirmed details from that meeting, including any vows to purchase sizable volumes of U.S. soy. U.S. Agriculture Secretary Brooke Rollins said last month that the Trump administration expects to with China by this week. She said on Tuesday that the administration would unveil an aid package next week for farmers hurt by low crop prices and trade turmoil. Chinese importers booked nearly 2 million metric tons of U.S. soybeans last month for shipment in the 2025/26 marketing year that ends in August 2026, according to U.S. Department of Agriculture data, although only minimal purchases have been confirmed since then. Total Chinese purchases remain well short of the volumes seen before the trade war. China's absence from the market had pushed down the price of soybean futures to near five-year lows. The cargo vessel Tokugawa was being loaded with soybeans on Tuesday, and the vessel Katagalan Brave was set to load in the coming days, according to shipping data. Four others - RB Eden, Hua Xing Hai, Donna Alexandra and SSI Dominion - were due to arrive for loading over the next two weeks. U.S. sorghum shipments to China have also restarted for the first time since March. One cargo vessel, the Bungo Queen, is currently loading at a Texas Gulf Coast terminal, and a second ship, the YM Navigator, is due to load late next week at a terminal in the Pacific Northwest, shipping data showed. https://www.reuters.com/world/china/more-us-soybean-shipments-china-due-load-through-mid-december-2025-12-02/
2025-12-02 22:23
WASHINGTON, Dec 2 (Reuters) - Entrepreneur Michael Dell and his wife, Susan, will deposit $250 in the individual investment accounts of 25 million American children in a $6.25 billion philanthropic pledge as part of the Trump administration's Invest America initiative. The initiative, known as "Trump accounts", was created this year under President Donald Trump's One Big Beautiful Bill Act and has sparked a scramble by financial firms looking to participate. The U.S. Treasury will deposit $1,000 into investment accounts for all children born between 2025 and 2028. Sign up here. The Invest America accounts are expected to open on July 4 next year, but details about how they will work are still unknown. The funds - required to be invested in an index fund that mirrors the performance of the broader stock market - become available at the age of 18 for education, job training, a first home or starting a business. "We believe the smartest investment that we can make is an investment in children," Michael Dell said at a White House event announcing the donation. Shares of Dell (DELL.N) , opens new tab - which is not affiliated with the couple's foundation - were up more than 3%. Michael Dell founded the technology company in 1984 and serves as its chairman and chief executive officer. Trump said at the White House that the gift would give middle-class children a stake in American economic and stock market growth. "It really gives them a shot at the American dream," he said. He added that he would make a personal contribution towards the effort. The Dells said the funds are mainly aimed at children up to age 10, but kids who are older may benefit if the funds remain available after initial sign-ups. They will put money into the accounts of children who live in ZIP codes where the median family's income is $150,000 or less, according to a spokesperson for the Dells. Since its creation in 1999, the Michael & Susan Dell Foundation has given about $2.9 billion for charitable works, mainly focused on education. The couple's $6.25 billion commitment for Invest America comes from other charitable funds and not their foundation. Michael Dell, who started the company with $1,000 in his freshman dorm room at the University of Texas, is worth nearly $150 billion, according to the Forbes real-time billionaire list. LOBBYING SCRAMBLE Financial firms have been scrambling to grab a piece of the program, according to public lobbying records. The Investment Company Institute, a Washington trade group representing the world's largest asset managers, on October 29 wrote to the Treasury , opens new tab urging it to create a "robust and competitive marketplace for account trustees and custodians," rather than picking a single provider for the program. A competitive marketplace is key to the program's long-term success by incentivizing providers to promote the accounts and provide important educational information, the group said. In a Tuesday statement, ICI reiterated that position and also called for "flexibility in the eligible investments." Several other industry groups and asset managers, including BlackRock, Franklin Templeton, and Ameriprise Financial, have also been lobbying on Trump accounts, public records show. The companies did not immediately respond to requests for comment. https://www.reuters.com/technology/michael-susan-dell-pledge-625-billion-investment-accounts-us-children-2025-12-02/
