2025-08-01 11:52

US announces new tariff rates ahead of trade talks deadline Asian, European shares head for worst week since April Dollar set for biggest weekly gain in nearly three years US jobs data pivotal for September rate cut hopes LONDON, Aug 1 (Reuters) - Global shares tumbled on Friday after the U.S. slapped dozens of trading partners with steep tariffs, while investors anxiously awaited U.S. jobs data that could make or break the case for a Federal Reserve rate cut next month. The pan-European STOXX 600 (.STOXX) , opens new tab fell 1.3%, taking its weekly fall to almost 2%, which would be its biggest weekly drop since U.S. President Donald Trump announced so-called reciprocal tariffs on April 2. Sign up here. Both Nasdaq futures and S&P 500 futures were down around 1%. Late on Thursday, Trump signed an executive order imposing tariffs ranging from 10% to 41% on U.S. imports from foreign countries and territories. Rates were set at 25% for India's U.S.-bound exports, 20% for Taiwan's, 19% for Thailand's and 15% for South Korea's. He also increased duties on Canadian goods to 35% from 25% for all products not covered by the U.S.-Mexico-Canada trade agreement, but gave Mexico a 90-day reprieve from higher tariffs to negotiate a broader trade deal. "The August 1 announcement on reciprocal tariffs is somewhat worse than expected," said Wei Yao, research head and chief economist in Asia at Société Générale. Market reaction was not as volatile as April's global asset declines, she added. "We are all getting much more used to the idea of 15-20% tariffs being manageable and acceptable, thanks to the worse threats earlier." MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) , opens new tab fell 1.5%, bringing the total loss this week to roughly 2.7%. Japan's Nikkei (.N225) , opens new tab closed 0.7% lower, Chinese blue chips (.CSI300) , opens new tab ended 0.5% down and Hong Kong's Hang Seng index (.HIS) , opens new tab lost more than 1%. On Thursday, Wall Street failed to hold onto an earlier rally. Data showed U.S. inflation picked up in June, with new tariffs pushing prices higher and stoking expectations that price pressures could intensify, while weekly jobless claims signalled the labour market remained on a stable footing. Fed funds futures imply just a 45% chance of a rate cut in September, compared with 65% before the Federal Reserve held rates steady on Wednesday, according to LSEG data. Much now will depend on the U.S. jobs data due later in the day, and any upside surprise could price out the chance for a cut next month. Forecasts are centred on a rise of 110,000 in nonfarm payrolls in July. "Fed Chair Jay Powell has placed greater emphasis on the unemployment rate, which is expected to rise marginally from 4.1% to 4.2%," said ING FX strategist Francesco Pesole. "Hardly enough to sound the alarm on the jobs market." The greenback found support from fading prospects of imminent U.S. rate cuts, with the dollar index up 1.5% this week against its peers to 100, in the biggest weekly rise since September 2022. The yen weakened past 150 per dollar for the first time since April. The Bank of Japan held interest rates steady on Thursday and revised up its near-term inflation expectations, but Governor Kazuo Ueda sounded a little dovish in the press conference. Two-year Treasury yields fell one basis point to 3.9449%, while benchmark 10-year yields rose 3 basis points to 4.388%, after slipping 2 bps the day before. In commodity markets, oil prices continued to fall after a 1% plunge on Thursday. Brent fell 1% to $70.97 per barrel, while U.S. crude fell 1% to $68.53 per barrel. Spot gold rose 0.3% to $3,298 an ounce. https://www.reuters.com/world/china/global-markets-wrapup-5-2025-08-01/

2025-08-01 11:51

Adjusted earnings for quarter $1.77 per share versus $1.70 consensus Global production totaled record 3.4 million barrels of oil equivalent per day Capital expenditure declined 7.5% HOUSTON, Aug 1 (Reuters) - Chevron (CVX.N) , opens new tab beat analyst estimates for second-quarter profit on Friday as record oil and gas production and lower capital expenditure helped to offset the impact of lower crude prices. The No. 2 U.S. oil major last month headed off a legal challenge from the biggest U.S. producer Exxon Mobil (XOM.N) , opens new tab enabling it to close its $55 billion acquisition of Hess. Sign up here. The deal includes a stake in the Stabroek Block oilfield, offshore Guyana, that Exxon operates, and should provide Chevron with a source of long-term growth to help to fund dividends into the 2030s and make Chevron's earnings more resilient to oil price volatility. International crude prices declined by 11% during the quarter as OPEC+, the Organization of the Petroleum Exporting Countries and allied producers, increased output. Exxon Mobil also beat Wall Street estimates for second-quarter profit on Friday. "We had strong execution, record production and exceptional cash generation," said Chevron Chief Financial Officer Eimear Bonner in an interview. "The financial performance was really underpinned by the stellar operational performance from across the company." Adjusted earnings for the quarter ended June 30 were $3.1 billion, or $1.77 per share, beating consensus analyst estimates of $1.70 per share, according to data compiled by LSEG. Global production totaled 3.4 million barrels of oil equivalent per day, up from 3.3 million boed in the same period last year. Production from the Permian Basin, the biggest U.S. oilfield, reached 1 million boed during the quarter. Third-quarter production is expected to be lower by 60,000 boed due to maintenance. "Following the clouds of uncertainty being lifted around the Hess deal, Chevron has hit the ground running with a strong set of results and beat versus market expectations," said Biraj Borkhataria, an analyst with RBC Capital Markets, in a research note. Capital expenditure declined 7.5% from the same period last year, as the company spent less on its downstream operations. Chevron raised its free cash flow guidance for 2026 to $12.5 billion. The company paid $2.9 billion in dividends and repurchased $2.6 billion worth of shares during the quarter. Although Chevron has said the Hess acquisition will allow it to increase dividends and repurchases over the long term, at least for this year, CFO Bonner said it did not expect to change its guidance of between $10 billion and $20 billion in full-year share repurchases. "We're still in the range and we've got a strong program, and we wouldn't see a change unless we saw a sustained and significant shift in where the commodity prices are today," she said. Earnings from oil and gas production, which make up the bulk of Chevron's profit, were $2.7 billion, down from $4.5 billion in the year-ago quarter. https://www.reuters.com/business/energy/chevron-beats-wall-street-profit-estimates-with-record-output-2025-08-01/

2025-08-01 11:47

LADANYBENE, Hungary, Aug 1 (Reuters) - Farmers in southern Hungary's key agricultural area are grappling with increasingly severe drought as climate change cuts crop yields and reduces groundwater levels, with some considering relocating or alternative employment. The vast flatland, situated between the Tisza and the Danube rivers, produces corn, grain, and sunflower seed, but scientists warn that rising temperatures and insufficient rainfall are threatening its agricultural viability. Sign up here. The Hungarian meteorological service said on Thursday that soil in central Hungary remains "critically dry" despite recent rains, with summer crops severely affected. Krisztian Kisjuhasz, a beekeeper in Ladanybene would normally move his bees home to his farm at the end of the honey-producing season in July, and start preparing them for the winter. This year, however, he packed up his bees in the middle of the night, wearing a headlamp with red light to move them to a flood zone of the Tisza river, more than 80 kilometers from his home to ensure they have access to pollen. "Last year 30% of our bees died mainly because there was not enough pollen due to the drought ... they were not strong enough for the winter," he said, adding that the costs of commuting to tend to his bees will force him to raise honey prices. Kisjuhasz, whose farm has been in his family for five generations, is now contemplating selling it and moving to a less dry area. "There is no future for beekeeping in the Homokhátság," he said. In May, the government launched a project worth about 5 billion forints ($14.29 million) to clean canals and focus on water retention to combat drought. However, the government cannot completely protect the country from the drought, Prime Minister Viktor Orban said in an interview with website baon.hu last month. "We are doing everything we can, but even these efforts will only be sufficient to alleviate the damage caused by drought," he said. In 2022, a droughtcaused 1000 billion forints ($2.86 billion) of losses for the agricultural sector and contributed to a rise in Hungarian inflation to two-decade highs. Csaba Toldi, a farmer in Jaszszentlaszlo, said his grasslands produced a loss this year for the first time due to the drought and he is seeking alternative work. Water needs to be returned to the Homokhatsag region, either through channels or water retention, Toldi says, otherwise "this area will completely dry out." ($1 = 350.0000 forints) https://www.reuters.com/sustainability/cop/farmers-consider-abandoning-drought-hit-region-central-hungary-2025-08-01/

2025-08-01 11:46

Dollar hits new highs after levies raised for some countries Swiss franc, Canadian dollar hit by country tariffs Yen sinks, Bank of Japan signals no hurry to resume rate hikes US monthly jobs data due later LONDON, Aug 1 (Reuters) - The dollar headed for its strongest weekly performance in almost three years against other major currencies, maintaining momentum on Friday after U.S. President Donald Trump imposed new tariff rates on dozens of trade partners. Some of the currencies of the countries that were hit the hardest, such as Switzerland, which now faces a 39% rate, fell sharply. The Swiss franc touched its weakest in six weeks, while the Canadian dollar was set for a seventh straight weekly loss. Sign up here. The dollar also gained against other currencies due to drivers other than tariffs. The yen headed for its largest weekly loss this year after the Bank of Japan signalled it was in no hurry to resume interest rate hikes, prompting Finance Minister Katsunobu Kato to say on Friday that officials were "alarmed" by currency moves. Friday also brings the monthly U.S. employment report, which is expected to show 110,000 workers were added to nonfarm payrolls in July. A large part of the dollar's strength this month has come from the perception among investors that Trump's tariffs have not derailed the economy and, so far, have not drastically lifted inflation. The Federal Reserve, despite pressure from Trump on Chair Jerome Powell to cut rates, has indicated it is in no rush to do so. Friday's payrolls report may not move the needle much on that assumption, even if a weaker reading elicits some selling of U.S. assets like the dollar, according to IG strategist Chris Beauchamp. "Fundamentally the U.S. economy is okay, it's not in the most wonderful place, tariffs will hurt a little bit and the market looks like it could be vulnerable in the short term to more selling, simply as an excuse to take some money off the table to sit it out and wait and see what happens," he said. "You'd have to have a lot of very bad data in a very short period of time between now and September to revive the corpse of a September rate cut," he said. The dollar index , which tracks the U.S. currency against a basket of six others, is on course to rise 2.4% this week, its best weekly performance since a 3.1% rally in September 2022. It was last up 0.1% at 100.13, its highest since late May. TARIFF HITS The Swissie fell against a range of currencies, surrendering its habitual safe-haven label in the face of a selloff in stocks and commodities, in response to Trump's hefty duties and to his demand that pharma companies - key Swiss exporters - lower the prices at which they sell to U.S. consumers. The dollar rose by as much as 0.6% to a high of 0.8173 francs, the most in six weeks, while the euro gained 0.4% to trade at 0.931 francs. The yen, another classic safe-haven currency, was last a touch stronger on the day against the dollar, which fell 0.3% to 150.37 yen, having earlier traded at its strongest since late March. The dollar also advanced on the Canadian dollar , up 0.1% at $1.3867, after Canada was hit with a 35% tariff, instead of the threatened 25%. The euro remained pinned near an almost two-month low around $1.14093, as it continues to be weighed down by what markets see as a lopsided trade agreement with Washington. "In the short-term, you can make the case for more dollar strength," said Mike Houlahan, director at Electus Financial in Auckland. "The lion's share of the tariff news has washed through." "The big move of the week has really been the euro getting re-rated downwards," he said. "The net result would be the EU-U.S. trade deal is a further headwind for the euro." The EU's framework trade agreement with the U.S., struck on Sunday, was quickly criticized by French leaders and the German head of the European Parliament's trade committee as being unfair for Europe. https://www.reuters.com/world/africa/dollar-forges-higher-trump-releases-new-tariff-barrage-2025-08-01/

2025-08-01 11:44

H1 EBIT excluding nuclear fell 9.4% from year earlier Higher gas distribution failed to offset lower energy sales prices Engie to pursue existing projects in US, but more cautious on new FIDs, CEO says PARIS, Aug 1 - French utility Engie (ENGIE.PA) , opens new tab plans to move forward with its existing wind, solar and battery projects in the United States despite President Donald Trump rolling back subsidies, its CEO said on Friday. Europe's largest gas network operator reported a 9.4% fall in first-half earnings before interest and taxes (EBIT), excluding nuclear, to 5.1 billion euros ($5.82 billion) due to lower energy prices. Sign up here. "These results are solid in normalising market conditions and in an uncertain economic and geopolitical context," CEO Catherine MacGregor said. After reviewing its project pipeline in the U.S. - a major growth market for Engie, where it holds 8 Gigawatts (GW) of renewables - the group will continue building 1.1 GW of projects that have already received final investment decisions. "Our clients and counterparties in the U.S. have adapted to the new market reality, notably by adding contractual clauses that better share residual risks, which will allow us to proceed with these three projects with confidence," MacGregor told journalists on a call. Engie will also work to reduce the number of Chinese-made parts in its supply chain in a bid to keep benefiting from U.S. tax credits. It could lose other U.S. subsidies for early-stage renewable projects if a decision on tightening the definition of the start of construction, expected later this month, means Engie is deemed to have begun building after 2025. MacGregor said Engie would be more cautious when making FIDs in the U.S., but she remained hopeful that rising power demand would create additional opportunities for renewables. If necessary, Engie has options to build in other countries to meet its growth targets, she added. Engie shares fell as much as 8% before paring early losses to stand 2% lower at 19.20 euros by 1142 GMT, with analysts at Barclays pointing to the company confirming rather than raising its 2025 guidance. The shares are up 28% year-to-date. Engie, which is exiting nuclear and coal to focus on natural gas and renewables, expects EBIT, excluding nuclear, of between 8 billion and 9 billion euros this year, and a group share of net recurring income between 4.4 billion and 5 billion euros. Colder weather and higher transportation and usage tariffs boosted natural gas distribution in the first half, with earnings from energy infrastructure activities up 38% to 1.9 billion euros. But it failed to offset a fall in energy production and sales caused by lower prices, less rainfall and nuclear outages. Energy management and sales fell 32% to 1.5 billion euros, as energy prices normalised after a better-than-usual 2024, CFO Pierre-Francois Riolacci said. EBIT at Engie's batteries and power production unit fell 13.4% to 1.98 billion euros. In March, the company finalised an agreement with Belgium, to transfer its two newest nuclear reactors into a joint venture to operate through 2035, with waste-related liability falling on the state. Its two other operational reactors in the country will be retired by year-end. ($1 = 0.8757 euros) https://www.reuters.com/sustainability/climate-energy/frances-engie-optimistic-us-renewables-projects-after-lower-energy-prices-dent-2025-08-01/

2025-08-01 11:44

Trump hits dozens of countries with steep tariffs Gold down 1.4% so far this week Silver, platinum, palladium set for weekly losses Aug 1 (Reuters) - Gold prices rose on Friday as investors turned to the safe-haven asset after United States President Donald Trump imposed fresh tariffs on a broad range of countries, while the market's focus shifted to the U.S. non-farm payrolls report. Spot gold was up 0.3% at $3,299.54 per ounce, as of 1119 GMT. However, bullion is down 1.4% so far this week. Sign up here. U.S. gold futures rose 0.1% to $3,351.40. The precious metal should remain supported amid the still-uncertain impact from U.S. tariffs on global economic growth, said Han Tan, chief market analyst at Nemo.Money. Trump slapped steep tariffs on exports from dozens of trading partners including Canada, Brazil, India and Taiwan pressing ahead with his plans to reorder the global economy ahead of a Friday trade deal deadline. U.S. inflation increased in June as tariffs on imports started raising the cost of some goods. Focus now shifts to U.S. jobs data, due later on Friday, as investors assess the Federal Reserve's policy trajectory, with July job growth expected to have slowed and the unemployment rate projected to rise to 4.2%. "The incoming US jobs report may also trigger another big move for gold. Another demonstration of resilience by the U.S. jobs market could send gold southbound towards $3,200," Tan added. Fed held rates steady in the 4.25%-4.50% range on Wednesday and dampened expectations for a September rate cut. Gold, often considered a safe-haven asset during economic uncertainties, tends to perform well in a low-interest-rate environment. Physical gold demand in key Asian markets improved slightly this week as a pullback in prices sparked buying interest, though volatility kept some buyers cautious. Spot silver fell 0.7% to $36.49 per ounce, platinum lost 1.6% at $1,269.27 and palladium was down 1.7% at $1,170.35. All the three metals were headed for weekly losses. https://www.reuters.com/world/china/gold-gains-safe-haven-demand-spotlight-shifts-us-jobs-data-2025-08-01/