2025-08-22 16:53
Powell opens door to September rate cut but does not commit Fed chair has faced barbs from President Trump Shares rally over 1%, 2-year Treasury yields down 10 basis points Dollar falls, oil edges up LONDON/SAN FRANCISCO, Aug 22 (Reuters) - Stocks climbed and U.S. Treasury yields and the dollar fell on Friday after Federal Reserve Chair Jerome Powell pointed to a possible rate cut at the central bank's September meeting. Wall Street shares rallied after Powell stopped short of committing to cutting interest rates as he acknowledged growing risks to the job market while also saying risks of higher inflation remain. Sign up here. His remarks, to the annual central banking symposium at Jackson Hole, are his final address as chair of the Fed. The S&P 500 (.SPX) , opens new tab and Nasdaq Composite (.IXIC) , opens new tab rose 1.5% and 1.7%, respectively. The Dow Jones Industrial Average (.DJI) , opens new tab jumped 2.2% to a record intraday high. Government bonds also welcomed the news with the rate-sensitive two-year Treasury yield down nearly 10 basis points at 3.69% . Benchmark 10-year yields fell 6 bps to 4.27%. Powell's past speeches at the event have often moved markets, and this year's remarks are under particularly close scrutiny as his position has come under heavy criticism from U.S. President Donald Trump, sparking concerns about potential threats to the Fed's independence. His comments open the door to a rate cut at the Fed’s September 16-17 meeting, and while he put heavy weight on jobs and inflation reports that will be received before then, analysts said Powell appeared to be putting greater weight on the former. “Given Powell's surprisingly dovish comments, it makes sense that both stocks and bonds are up significantly today," said Tom Graff, chief investment officer at Facet. "However, looking over the next couple months, rate cuts alone won't be enough to sustain strength in stocks. The rate cuts will have to ‘work’ in the sense that the economy regains momentum,” Graff added. Powell offered little guidance about how soon or how quickly rates might continue to move lower, likely stoking further pressure from Trump, who contends there is no risk of inflation and that the Fed should slash rates immediately. European markets echoed the moves by their U.S. peers, but in a more muted manner. Europe's broad STOXX 600 index (.STOXX) , opens new tab climbed 0.4%, while Germany's 10-year yield, the euro zone benchmark, was down 3 bps at 2.72%. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, was last down 0.89% on the day at 97.73, after trading around 98.7 before Powell's comments. The euro gained 0.97% to $1.1717. Against the Japanese yen , the dollar weakened 1.1% to 146.74. CHINA TECH Earlier in the day, the focus was on Chinese shares and the CSI 300 Index (.CSI300) , opens new tab gained 2.1%, after DeepSeek released an upgrade to its flagship V3 AI model and Reuters reported that Nvidia (NVDA.O) , opens new tab had asked Foxconn (2317.TW) , opens new tab to suspend work on the H20 AI chip, lending support to Chinese rivals. Tech stocks listed in Hong Kong (.HSTECH) , opens new tab rose 2.7%. Also in Asia, Japanese data showed core consumer prices slowed for a second straight month in July but stayed above the central bank's 2% target, keeping alive expectations for a rate hike in the coming months. Oil prices nudged up, with Brent crude futures up 18 cents at $67.85 a barrel following strong gains on Thursday as Russia and Ukraine blamed each other for a stalled peace process. U.S. crude was up a similar amount at $63.78. Gold also gained, with spot bullion up about 1% at $3,370 per ounce. https://www.reuters.com/world/china/global-markets-wrapup-5-2025-08-22/
2025-08-22 16:38
Newest sectors at El Teniente need review after accident Codelco's own production up 9% in first half of 2025 Pre-tax profit drops 34% SANTIAGO, Aug 22 (Reuters) - Chile's Codelco [RIC:RIC:COBRE.UL], the world's largest copper producer, on Friday lowered its 2025 production guidance following a tunnel collapse at its flagship El Teniente mine and said it will revise plans for sectors that were part of an expansion. The state-run miner now expects 2025 production of 1.34-1.37 million metric tons of copper, down from a March estimate of 1.37-1.40 million tons - a trim of 30,000 tons on both ends. Sign up here. Codelco's output hit a quarter-century low in 2023, and the company has been struggling to compensate for aging deposits and delays in major expansion projects. The accident on July 31 at El Teniente, Codelco's most profitable mine, marked a new blow, forcing mining activity and smelting to go offline for several days and causing a loss of 33,000 metric tons of copper, equivalent to $340 million. Six people died in the sudden collapse of underground tunnels that packed an impact equivalent to a 4.2 magnitude earthquake. Codelco on Friday flagged the possibility of further delays at the mine, saying sectors that were part of an expansion plan "need to be revised" after the accident, which hit the Andesita unit. Andes Norte, started initial production in May, and Diamante had yet to begin production. CEO Ruben Alvarado said the company had improved management and production this year up until the accident, and would prioritize safety along with the need for recovering operations. "We are focused on our plan for a safe and gradual return to operations at El Teniente," Alvarado said in a statement. Half of El Teniente's 12 divisions have been re-opened so far. The accident also prompted the company to postpone its announcement of financial results for the first half of the year, originally scheduled for Aug. 1. Between January and June, Codelco recorded pre-tax profit of $429 million, down 34% from the $653 million reported in the same period last year. The state-owned miner said its own output totaled 634,000 metric tons, up 9% from the same period last year, helped by higher production at Ministro Hales and El Teniente, and the Salvador mine's Rajo Inca project, which is in ramp-up. Accounting for production from Codelco's stakes in El Abra, Anglo American Sur and Quebrada Blanca mines, total production reached 689,000 tons, 9.6% higher than in the same period of 2024. By the end of June, Codelco had spent $2.512 billion of its annual budget of $5.638 billion, it said. Direct production costs in the period increased 6% to $2.157 per pound, and Codelco forecast that this year they will range between $2.09 and $2.14 per pound of copper. https://www.reuters.com/world/americas/chiles-codelco-cuts-2025-copper-forecast-after-el-teniente-mine-collapse-2025-08-22/
2025-08-22 13:39
Retail sales in June grows 1.5%, might contract 0.8% in July Excluding sales of automobiles and parts, retail sales up 1.9% 27% retailers hurt by trade war in June, down from 32% in May OTTAWA, Aug 22 (Reuters) - Canada's retail sales rose as expected in June as shoppers bought more food and beverages, official data showed on Friday, indicating a rebound from a slump the month before. Retail sales in June increased by 1.5% on a monthly basis to C$70.25 billion ($50.49 billion) compared with a contraction of 1.2% in May, Statistics Canada said, adding that sales increased by a similar rate in volume terms as well. Sign up here. The outcome was in line with analyst expectations in a Reuters poll. However, excluding sales at automobiles and parts dealers, retail sales rose 1.9%, beating the poll forecast of 1.1%. In a flash estimate - often prone to changes - Statscan projected that retail sales in July would fall 0.8%. Retail sales, which include sales of cars, furniture, food, gasoline and many other items, are considered an early indicator of gross domestic product growth and contribute around 40% to total consumer spending, a prime contributor to economic growth. Analysts and economists track the retail sales number closely to gauge the health of the domestic economy. "The big picture suggests consumers are holding up despite ongoing labour market slack and elevated trade uncertainty," senior economist Shelly Kaushik at BMO Capital Markets wrote in a note. Canada's retail sales have been on a volatile path since U.S. President Donald Trump imposed tariffs on Canada and it retaliated with its counter levies. But lately, the impact of tariffs has been subdued and largely isolated within the impacted sectors of steel, aluminum and automobiles. Statscan said 27% of retail businesses were impacted by the trade tensions in June, compared with 32% in May, with the most common impacts being price increases, change in demand for product and delays in the supply chain. Sales at motor vehicles and parts dealers, which is the biggest contributor to retail sales at over 27%, grew the least, inching up 0.2% in June after a slump of 3.4% in May. This sector had taken a beating after the U.S.-Canada trade war as consumers curtailed spending on big ticket items fearing economic uncertainty. Food and beverage sales, which accounts for nearly a fifth of total retail sales, registered a solid increase in June of 2.3% as robust sales were observed at supermarkets, convenience retailers and liquor stores, Statscan said. ($1=$1.3914 Canadian) https://www.reuters.com/world/americas/canadas-retail-sales-rebound-june-likely-drop-again-july-2025-08-22/
2025-08-22 12:38
NEW DELHI, Aug 22 (Reuters) - India's renewable energy developers must align their growth plans with realistic demand projections to avoid the risk of infrastructure investments becoming unprofitable, a power ministry advisor said on Friday. Speaking at the BloombergNEF Summit in New Delhi, Central Electricity Authority (CEA) Chairman Ghanshyam Prasad warned against building renewable capacity without corresponding demand growth, a challenge the sector has faced in the past. Sign up here. "If we add 60 GW next year, will it get sold? Probably not," he said, noting that existing renewable capacity remains unsold. With electricity supply outpacing demand, grid operators have been forced to curtail power input to maintain system balance. India has about 44 gigawatts (GW) of renewable projects without supply agreements, Reuters reported earlier this month. Prasad said that India had suffered from thermal power overcapacity in the past decade. "Generators were at a loss. Some even faced bankruptcy issues. Let's not enter an era of stressed assets again," he said. Prasad also stressed the importance of better coordination between renewable energy developers and those building transmission lines, warning that having transmission ready does not automatically mean the power will be used. "We have substations like the one at Khavda (in the western state of Gujarat) with a 4,000 (megawatts) MW capacity, but only 300–500 MW has been hooked up." He urged developers developers to submit grid connection requests at least 24-36 months in advance to ensure timely integration. Several industry representatives at the summit said India's power transmission sector requires more comprehensive reforms. "We are able to add capacity very quickly but the need is to distribute that capacity at the equal pace through transmission. That investment is missing, because the whole focus is on the generation side," said Sanjeev Aggarwal, founder and executive Chairman of Hexa Climate Solutions. https://www.reuters.com/sustainability/boards-policy-regulation/indian-clean-energy-developers-urged-align-growth-with-demand-2025-08-22/
2025-08-22 12:26
Aug 22 (Reuters) - Mexico's economy grew 0.6% in the second quarter from the previous three-month period, national statistics agency INEGI said on Friday. The data came in slightly below INEGI's preliminary estimate published last month and forecasts from economists in a Reuters poll, both of which pointed to a 0.7% expansion. Sign up here. Growth in the quarter was fueled by secondary and tertiary activities, respectively covering manufacturing and services, which rose 0.7% and 0.8% on a sequential basis, according to INEGI. Primary activities, which include farming, fishing and mining, slipped 2.4%. In annual terms, Mexico's economy was flat in the period - below the 0.1% expansion expected by economists in the Reuters poll. https://www.reuters.com/world/americas/mexico-economy-grows-slightly-less-than-expected-q2-2025-08-22/
2025-08-22 12:17
SAN JUAN, Aug 22 (Reuters) - Canada's Aldebaran Resources will require at least $1.5 billion to develop its Altar copper project in northern Argentina, country manager Javier Robeto said in an interview. The company plans to include the figure in its preliminary economic assessment in September, which will show that Altar holds about 32 billion pounds of copper resources and 6.7 million ounces of gold resources, Robeto said. Sign up here. Aldebaran is unsure it will be ready to deploy the spending in time to qualify for a government incentives program known as RIGI, which offers lengthy tax breaks and access to international dispute courts for investments exceeding $200 million. The scheme will accept applications through July 2026, with a potential one-year extension. "It's not certain we'll make it. It's a challenge because if the RIGI is cut off, what happens next? The tax burden automatically returns to 54%," Robeto said. So far only two mining projects, both in lithium, have been approved for RIGI, which went into effect in October under President Javier Milei. Among other copper projects in the works, miners Glencore and McEwen Mining are also applying for the program. Robeto did not provide a potential timeline for construction and production at Altar, which has an estimated lifespan of 20 to 25 years. The economic assessment will include two scenarios for copper production, either in concentrate or cathode form. "The idea would be to conduct a trade-off analysis, looking at the pros and cons," Robeto said. https://www.reuters.com/markets/commodities/canadas-aldebaran-plans-15-billion-capex-argentina-copper-project-2025-08-22/
