2025-08-01 06:14
HANOI, Aug 1 (Reuters) - Flooding triggered by heavy rain has left at least 14 people dead or missing in Vietnam's northern province of Dien Bien, state media reported on Friday. Floodwater rose quickly on Thursday night after hours of heavy rain, inundating houses in low-lying areas and causing flash floods and mudslides in mountainous parts of the province, Tien Phong newspaper reported. Sign up here. The mountain village of Xa Dung suffered the heaviest casualties, with one death and six missing, the report said. Traffic and power lines to several parts of the province have been cut off due to the floods, according to a statement from the provincial People's Committee. Two children in Hang Pu Xi village have been buried in mudslides and rescuers are yet to find their bodies, according to the statement. Media reports said ongoing heavy rain in the province is hindering the search for the missing. https://www.reuters.com/business/environment/flooding-leaves-14-dead-missing-vietnams-dien-bien-2025-08-01/
2025-08-01 06:03
New tariff rate increases from 25% to 35% Trump says Carney called but the two have not talked ahead of tariff deadline Carney says disappointed by Trump's decision Lutnick says Trump may reconsider tariff on Canada if Carney turns on charm, removes retaliation WASHINGTON/TORONTO, Aug 1(Reuters) - U.S. President Donald Trump on Thursday signed an executive order increasing tariffs on Canadian goods to 35% from 25% on all products not covered by the U.S.-Mexico-Canada trade agreement, the White House said. Goods transshipped to another country to evade the new tariffs would be subject to a transshipment levy of 40%, according to a White House fact sheet. Sign up here. The move - which Washington linked in part to what it said was Canada's failure to stop fentanyl smuggling - is the latest blow in a months-long tariff war which Trump initiated shortly after taking power. The announcement blaming Canada's "continued inaction and retaliation" comes after Trump said Canadian Prime Minister Mark Carney reached out ahead of an August 1 tariff deadline, but no conversations between the two took place. Trump had said any country failing to strike a deal with the U.S. before Friday will be subjected to higher tariffs imposed on goods. Carney early on Friday said he was disappointed by Trump's decision. "While we will continue to negotiate with the United States on our trading relationship, the Canadian government is laser focused on what we can control: building Canada strong," Carney said in a post on X. U.S. duties and tariffs will heavily affect lumber, steel, aluminum, and automobiles, he added, vowing action to protect Canadian jobs, buy Canadian goods, invest in industrial competitiveness and diversify export markets. To justify its step, the U.S. has cited the cross-border flow of fentanyl, even though Canada accounts for just 1% of U.S. fentanyl imports and has been working intensively to further reduce the volumes, Carney added. Trump told NBC News on Thursday he was open to further discussions with Canada, adding that he may even speak with Carney later in the night. Premier Doug Ford of Ontario, which accounts for around 40% of Canadian GDP and is the country's industrial heartland, demanded Ottawa slap a 50% counter tariff on imports of U.S. steel and aluminum. "Canada shouldn't settle for anything less than the right deal. Now is not the time to roll over. We need to stand our ground," he said in a post on X. Trump said that while he loved Canada, it had treated the United States "very badly" for years. U.S. Commerce Secretary Howard Lutnick said Trump could reconsider the tariff if Carney "starts turning on the charm and if he takes off his retaliation." Earlier Thursday, Trump agreed to give Mexico a 90-day window to work toward a deal, allowing it to avoid a 30% tariff that he threatened to impose by August 1. Mexico will still have to pay a 25% duty on U.S.-bound exports that are non USMCA-compliant, a tariff that Trump has linked to demands that Mexico do more to curb drug and human smuggling. Canada sends around 75% of all its exports south of the border and is vulnerable to U.S. trade action. The economy has shown surprising resilience in the face of tariffs and is expected to avoid recession, economists say. About 90% of Canadian exports to the U.S. in May were exempt under the USMCA. The compliance level has shot up dramatically in the last few months, while some companies have diversified exports to avoid tariffs. Canadian government data shows exports to the U.S. dropped by 10 percentage points to 68% of total exports between May 2024 and May 2025, focused on manufacturing products such as cars and parts, and products made with steel and aluminum. Carney told reporters in June that if the two countries do not reach a trade deal by August 1, Canada would likely impose more counter levies on U.S. exports of steel and aluminum. https://www.reuters.com/world/americas/trump-increases-tariff-canada-35-25-cites-fentanyl-2025-07-31/
2025-08-01 06:02
Discount in India narrows to $7/oz this week India's gold demand in 2025 may hit a 5-year low due to high prices, WGC says China offered discount of $4.2 to premium of $12 this week Aug 1 (Reuters) - 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 gold hit its lowest level in a month on Wednesday and was headed for third consecutive weekly loss. Sign up here. "This week, footfall was better than last week. Buyers were inquiring about price trends and making small purchases," said a Pune-based jeweller. Domestic gold prices were trading around 97,700 rupees per 10 grams on Friday after rising to 100,555 rupees last week. Discounts offered by Indian dealers narrowed to as much as $7 an ounce over official domestic prices, inclusive of 6% import and 3% sales levies, compared to up to $15 last week. Jewellers were keen to make purchases to replenish inventory after a correction in overseas prices, but a significant drop in the rupee offset the impact of the price fall to an extent, said a Mumbai-based bullion dealer with a private bank. India's gold consumption in 2025 is set to fall to a five-year low, as record-high prices are denting jewellery purchases, the World Gold Council said on Thursday. In China, dealers quoted gold in a wide range, between a discount of $4.2 and a premium of $12 per ounce above international rates. "China appears to slightly buy the dip in gold... trading volume for the physical proxy contract AU9999 on the Shanghai Gold Exchange has been on the rise (11 tons traded yesterday), reflecting a renewed interest in the metal," said Hugo Pascal, a precious metals trader at InProved. In Hong Kong gold was sold at par to a $1.50 premium, while Singapore prices ranged from par to a $1.40 premium. In Japan, bullion was sold at par to a premium of $0.60. "There was lots of demand to buy if the price dropped even slightly. Regardless of the Japan-U.S. trade deal, gold is being purchased as an asset class amid low interest rates," a Japan-based trader said. https://www.reuters.com/world/china/asia-gold-gold-demand-key-asian-hubs-improves-amid-price-correction-2025-08-01/
2025-08-01 05:56
US announces new tariff rates ahead of trade talks deadline Asian shares set for worst week since April, Nasdaq futures dip Dollar set for 2.4% weekly gain, best in nearly 3 years US jobs data pivotal for Sept rate cut hopes SYDNEY, Aug 1 (Reuters) - Asian shares were headed for the worst week since April on Friday after the U.S. slapped dozens of trading partners with steep tariffs, while investors anxiously await U.S. jobs data that could make or break the case for a Fed rate cut next month. European stock markets are on track for a lower open, with EUROSTOXX 50 futures down 0.5%. Both Nasdaq futures and S&P 500 futures slipped 0.2% after earnings from Amazon (AMZN.O) , opens new tab failed to meet lofty expectations, sending its shares tumbling 6.6% after hours. Sign up here. Late on Thursday, President Donald Trump signed an executive order imposing tariffs ranging from 10% to 41% on U.S. imports from foreign countries. 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 latest tariff announcement offers some surface-level clarity, but beneath it lies a fog of uncertainty," said Thomas Rupf, Chief Investment Officer, Asia of VP Bank. "Despite some countries securing better terms, the overall impact is negative. We're entering an era of higher barriers to trade, which will have an impact and hurt growth." MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) , opens new tab fell 1.1% to bring the total loss this week to 2.2%, the biggest since April. South Korea's KOSPI (.KS11) , opens new tab plunged 3.5% while Taiwanese shares (.TWII) , opens new tab fell 0.5%. Japan's Nikkei (.N225) , opens new tab dropped 0.6%. Chinese blue chips (.CSI300) , opens new tab fell 0.7% and Hong Kong's Hang Seng index (.HSI) , opens new tab lost 0.8%. Overnight, Wall Street failed to hold onto an earlier rally. Data showed 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 39% chance of a rate cut in September, compared with 65% before the Federal Reserve held rates steady on Wednesday, according to the CME's FedWatch. 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 July, while the jobless rate likely ticked up to 4.2% from 4.1%. The greenback found support from fading prospects of imminent U.S. rate cuts, with the dollar index up 2.5% this week against its peers to 100, in the biggest weekly rise since late 2022. The Canadian dollar was little impacted by the tariff news, having already fallen about 1% this week to a 10-week low. The yen was the biggest loser overnight, with the dollar up 0.8% to 150.7 yen, the highest since late March. 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. Treasuries were largely steady on Friday. Two-year Treasury yields were flat at 3.9510%, while benchmark 10-year yields ticked up 2 basis points to 4.3781%, after slipping 2 bps overnight. In commodity markets, oil prices were little changed after falling 1% overnight. U.S. crude rose 0.1% to $69.36 per barrel, while Brent was at $71.8 per barrel, up 0.1%. Spot gold prices were up a fraction at $3,294 an ounce. https://www.reuters.com/world/china/global-markets-wrapup-3-2025-08-01/
2025-08-01 05:54
CHONGQING, China, August 1 (Reuters) - Temperatures topping 40 degrees Celsius (104 Fahrenheit) have broiled Chongqing, a metropolis in China's southwest known for its fiery hotpot restaurants and cyberpunk cityscape, pushing some locals to cope with the increasingly hot weather in innovative ways. "It's getting hotter and hotter," said Liu Fengying, 60, a local resident. Sign up here. As afternoon temperatures soared on Thursday, Liu avoided the heat by playing card games and sharing snacks with friends among around 100 retirees sheltering in the air-conditioned chill of a subway entrance. "Aside from coming here, there's really no other way to avoid the heat. Last night, even with the AC set to 17 degrees C, it was still hot and wouldn't cool down." Record heat across China has strained its power grid as demand surges to new all-time highs, now in excess of 1.5 billion kilowatts, with records broken four times just in July. After daily peaks exceeding 40 C for a week, Chongqing elevated its heat-wave warning to the highest level - a red alert - on Thursday, with 21 out of its 38 districts forecast to hit up to 43 C. A peak of 44 C is projected for Sunday. Historically, daily peaks in the city of nearly 32 million people have rarely exceeded 39 C in July, which is already very hot by global standards. Since the start of May, the number of days the city recorded temperatures exceeding 35 C this year was double the historic average. But some Chongqingers remain unfazed - for now. Xie, 79, one of dozens of swimmers who gathered at a tributary of the Yangtze as the sun started to set on Thursday, cools down with regular swims in China's longest river. "Chongqing has always been a furnace city, but we have the river to cool down," he said before diving off a two-metre tall river bank in his underwear. On the same night, Qiu Xianhui, 36, came with friends to eat hotpot, Chongqing's famously spicy broth, at a restaurant in one of the city's old bomb shelters, where the air cools naturally. "We're locals, so we're used to 40-plus degree weather. We've seen it all," he said. ($1 = 7.2087 Chinese yuan renminbi) https://www.reuters.com/sustainability/climate-energy/chongqing-residents-seek-shelter-heatwave-hits-chinas-southwest-2025-08-01/
2025-08-01 05:39
MUMBAI, August 1 (Reuters) - The Indian rupee found its footing on Friday after slipping to within striking distance of a record low in the previous session, as firm intervention by the central bank and a cutting of short bets against the currency helped it stabilise. The rupee strengthened to 87.3025 against the U.S. dollar as of 11:00 a.m. IST, up 0.3% on the day, following 12 consecutive sessions of either logging a decline or closing flat. Sign up here. The currency had declined to a low of 87.74 on Thursday, inches away from its all-time low of 87.95, after President Donald Trump slapped steeper-than-expected tariffs on Indian goods, with analysts also warning of sustained pressure on the country's growth. The Reserve Bank of India likely intervened in both the non-deliverable forward market and the local over-the-counter spot market to support the rupee, traders said. The central bank seems to be inclined to stabilise the currency, and "they have been heavily hitting the (USD/INR) pair since the morning,” a trader at a state-run bank said. The intervention also spurred traders to exit short bets against the currency, which helped it extend its gains, a second trader at a bank said. Foreign portfolio outflows have also been a consistent pain point for the rupee as overseas investors remained net sellers of Indian stocks over the last nine consecutive trading sessions. Sentiment on the rupee is quite weak right now, so it makes sense for the RBI to step in, said Dilip Parmar, a foreign exchange research analyst at HDFC Securities. Meanwhile, the dollar index was hovering at the 100 mark, and Asian currencies fell as investors fled riskier regional assets after the U.S. imposed sweeping new tariffs on dozens of trading partners. The Korean won led losses with a 0.6% decline as investors also awaited key U.S. labour market data due later in the day to gauge the future path of benchmark policy rates in the world's largest economy. https://www.reuters.com/world/india/firm-central-bank-intervention-short-culling-helps-shore-up-rupee-2025-08-01/
