2025-07-30 02:22
CPI rises 2.1% y/y in Q2, core inflation slows to 2.7% Home building costs and services ease Reinforces market pricing of 25 bps RBA rate cut in August SYDNEY, July 30 (Reuters) - Australian consumer prices grew at the slowest pace in over four years in the June quarter, data showed on Wednesday, while core inflation hit a fresh three-year low and cemented market wagers for a cut in interest rates next month. The surprisingly benign report will be a huge relief to the board of the Reserve Bank of Australia which paused its easing cycle this month on concerns core inflation would not cool as much as hoped, a shock decision that badly wrong-footed markets. Sign up here. "We believe that the board now has the confirmation it needs to continue on its 'cautious' – if not so predictable – path of removing current monetary restrictiveness," said Luci Ellis, chief economist at Westpac. "We therefore expect it to cut rates by 25 bps at its August meeting," she added. "Further cuts in November, February 2026 and May 2026, also look increasingly likely. Markets now imply a near-100% chance the RBA will cut its 3.85% cash rate by a quarter point when it meets on August 12, and continue easing to 3.10% or lower by year-end. With a cut long priced in, the data did little damage to the Australian dollar which held at $0.6512 . The report certainly supported the doves as the main trimmed mean measure of core inflation rose 0.6% in the June quarter, below forecasts of 0.7%. That took the annual pace to 2.7%, down from 2.9% in the March quarter and nearer the mid-point of the RBA's target band of 2% to 3%. This underlying measure is favoured by policy makers as it strips out volatile one-off shifts in prices. The headline consumer price index rose 0.8% in the quarter, nudging the annual pace down to 2.1% from 2.4%, the lowest reading in more than four years. This measure has been held down by government rebates on electricity and child care, which will soon drop out of the series and likely see the CPI temporarily rise back toward 3%. A monthly measure of the CPI actually showed annual price growth dropped to just 1.9% in June, putting it under the RBA's target band. Details of the report showed the largest price gains in the June quarter came in clothing, electricity and health care, but gains elsewhere were much more modest. Crucially for the RBA, the cost of new housing eased markedly as project home builders responded to subdued demand with incentives and promotional offers. Annual inflation in new dwellings slid to just 0.7% in the second quarter, from 1.6% the previous quarter and a top of almost 21% back in 2022. There was also a welcome slowdown in the services sector, which has proved more stubborn than for goods which are open to international competition. Annual services inflation dropped to 3.3% in the June quarter, led by rents and insurance. The cool down has been helped by a pullback in wage growth and a loosening in the labour market, where the jobless rate hit a 3-1/2 year high of 4.3% in June. https://www.reuters.com/world/asia-pacific/australia-q2-inflation-surprises-low-side-heralds-rate-cut-2025-07-30/
2025-07-30 00:47
Policy unchanged after two easings this year Central bank says it is in able to respond to risks MAS keeping ammunition dry, economist says Economic prospects subject to significant uncertainty SINGAPORE, July 30 (Reuters) - Singapore's central bank on Wednesday kept its monetary policy settings unchanged after economic growth surprised to the upside in the second quarter. The Monetary Authority of Singapore said it will maintain the prevailing rate of appreciation of its exchange rate-based policy band. Sign up here. The width and the level at which the band is centred were unchanged. "The risk of a sharp step-down in global growth in the near-term has receded along with the general de-escalation in trade tensions as well as more benign financial conditions since April," the MAS said in a statement. It added it was in an appropriate position to respond to risks after two previous easings. OCBC economist Selena Ling said the MAS was keeping its ammunition dry and waiting to see the outcome of reciprocal tariffs given the two-way risks for inflation. "Tariff impact on Chinese exports to rest of the world may be disinflationary, but geopolitics and supply chain recalibrations may be inflationary, so the net impact still has to be assessed," said Ling. Half of the 12 analysts polled by Reuters ahead of the review expected the MAS to keep policy settings unchanged while the other half forecast an easing of policy. The MAS eased monetary policy in January and April this year on growth concerns due to U.S. tariffs after holding settings since a tightening in October 2022. The economy, however, is posting better-than-expected results as exporters rushed out goods to beat the imposition of U.S. tariffs. Singapore avoided a technical recession after the economy grew 1.4% quarter-on-quarter in the second quarter, according to preliminary government data. Authorities in Singapore have warned that growth is likely to slow in the second half of 2025 as the export and production frontloading tapers off. "Prospects for the Singapore economy remain subject to significant uncertainty, especially in 2026," the MAS said on Wednesday. In April, the government reduced its GDP forecast to 0.0% to 2.0% from 1.0% to 3.0%. Core inflation in the city-state fell to 0.6% year-on-year in June from a peak of 5.5% in early 2023. Instead of using interest rates, Singapore manages monetary policy by letting the local dollar rise or fall against the currencies of its main trading partners within an undisclosed trading band, known as the Singapore dollar nominal effective exchange rate, or S$NEER. It adjusts policy via three levers: the slope, mid-point and width of the policy band. https://www.reuters.com/world/asia-pacific/singapore-keeps-monetary-settings-unchanged-trade-tensions-ease-2025-07-30/
2025-07-30 00:40
India's Seven Islands, GESCO seek release of ships, sources say Nayara trims refinery runs on storage constraints, sources say HPCL diverts vessel from Vadinar to Mangalore, sources say India is top importer of seaborne Russian crude NEW DELHI, July 29 (Reuters) - The owners of three vessels chartered by India's Nayara Energy have asked to end their contracts with company, six sources familiar with the matter said on Tuesday, under pressure from EU sanctions imposed on the Russian-owned refiner. Nayara, majority-owned by Russian entities including oil major Rosneft (ROSN.MM) , opens new tab, runs India's third-biggest refinery and exports refined products and also supplies them domestically. Sign up here. Fresh European Union sanctions unveiled on July 18 that target Russia and its energy sector over Moscow's war in Ukraine, have been increasingly disruptive to Nayara. Reuters earlier reported it has been forced to reduce operations at its 400,000-barrels-per-day refinery due to fuel storage constraints. India-based Seven Islands Shipping Ltd (SEVI.NS) , opens new tab and Great Eastern Shipping Co (GESC.NS) , opens new tab (GESCO) have asked Nayara to release the three clean products tankers from their contracts, citing concerns over the sanctions, five of the sources told Reuters. Seven Islands is seeking the release of its medium-range vessels Bourbon and Courage, while GESCO has sought the return of the Jag Pooja, the sources said. The sources declined to be named as they were not authorised to speak to the media. Mumbai-based Nayara did not immediately respond to a Reuters request for comment. It has previously criticised the EU sanctions, calling them "unjust and unilateral". Seven Islands and GESCO did not immediately respond to requests for comment. Bourbon is anchored near Vadinar port in western India, where Nayara's refinery is based, while Courage and Jag Pooja are floating off Kochi and Ennore ports, respectively, data from analytics firm Kpler showed. Another tanker, Sanmar Songbird, chartered by Indian state refiner Hindustan Petroleum Corp (HPCL.NS) , opens new tab, was scheduled to load gasoline from Nayara on Tuesday, according to three sources and LSEG data. But it has since been diverted to load from Mangalore Refinery and Petrochemicals Ltd (MRPL.NS) , opens new tab, sources said. The diversion was due to the sanctions and the lack of available insurance cover for the voyage, they said. HPCL and Sanmar did not immediately respond to requests for comment. India has become the biggest importer of Russian seaborne crude since Moscow launched its full-scale invasion of Ukraine in early 2022. Last week, Reuters reported that a tanker carrying Russian Urals crude was diverted from Nayara's Vadinar port following the EU sanctions announcement, while two other tankers skipped loading refined products there. Nayara's CEO resigned in the wake of the new sanctions, and the company filed a court case in India against Microsoft (MSFT.O) , opens new tab after the U.S. software giant suspended services to the firm. https://www.reuters.com/business/energy/shippers-ask-end-contracts-with-russian-backed-refiner-nayara-sources-say-2025-07-29/
2025-07-30 00:30
July 29 (Reuters) - One of the U.S. Department of Energy's 17 national labs was attacked by hackers as part of a recent campaign seeking to exploit flaws in Microsoft's (MSFT.O) , opens new tab SharePoint software, Bloomberg News reported on Tuesday, citing a department spokesperson. "Attackers did attempt to access Fermilab's SharePoint servers," a Department of Energy spokesperson told Bloomberg, referring to the U.S. Fermi National Accelerator Laboratory. Sign up here. "The attackers were quickly identified, and the impact was minimal, with no sensitive or classified data accessed," the spokesperson said, adding that Fermilab’s servers are back online and running normally. Microsoft, Fermilab and the U.S. Department of Energy did not immediately respond to Reuters' requests for comment. A security patch released by Microsoft last month failed to fully fix a critical flaw in the U.S. tech giant's SharePoint server software that had been identified in May, opening the door to a sweeping global cyber espionage operation. Fermilab, established in 1967, is "America's particle physics and accelerator laboratory," according to its website. Last week, a U.S. Department of Energy spokesperson told Reuters that on July 18 a SharePoint security flaw impacted its systems, including those of the National Nuclear Security Administration, which oversees the nation's nuclear weapons stockpile. The department had stated that all affected systems were being restored. https://www.reuters.com/technology/us-fermilab-hit-cyberattack-targeting-microsofts-sharepoint-bloomberg-news-2025-07-29/
2025-07-29 23:59
SAO PAULO/RIO DE JANEIRO, July 29 (Reuters) - Brazilian state-run oil firm Petrobras (PETR4.SA) , opens new tab reported on Tuesday a total oil, gas and gas liquids production of 2.91 million barrels of oil equivalent per day (boed) in the second quarter, up 7.8% from a year earlier. Petrobras' oil production in Brazil reached 2.32 million barrels per day (bpd), a 7.6% increase, with the firm noting that during the second quarter five floating production vessels increased output and one started operating. Sign up here. Sales of oil, gas and derivatives reached 2.98 million boed, a 1.6% increase, while exports of oil and derivatives rose 2.7%, to some 874,000 bpd, said the firm. https://www.reuters.com/business/energy/petrobras-posts-q2-oil-gas-output-up-nearly-8-year-earlier-2025-07-29/
2025-07-29 23:59
First major LNG export facility in Canada faces startup challenges Western Canadian gas prices remain low despite LNG Canada startup LNG Canada expects export pace to increase after initial break-in period LONDON/HOUSTON/CALGARY, July 29 (Reuters) - Shell-led (SHEL.L) , opens new tab LNG Canada is experiencing technical problems as it ramps up production at its liquefied natural gas plant at Kitimat, with one LNG tanker diverting away from the facility without the superchilled fuel in recent days, according to four sources and LSEG ship tracking data. The plant is the first major LNG export facility in Canada and the first on the west coast of North America, providing direct access to Asia, the world's largest LNG market. Sign up here. The facility is expected to convert about 2 billion cubic feet of gas per day (bcfd) to LNG when fully operational, which market participants have hoped will boost Canadian natural gas prices. Western Canadian natural gas prices remain depressed, however, due to a persistent supply glut that has not yet been drawn down by fresh demand from LNG Canada's July 1 startup. The daily spot price at the Alberta Energy Company (AECO) storage hub closed at $0.22 per mmBtu on Tuesday, compared to the U.S. Henry Hub benchmark price of $3.12, according to LSEG data. LNG Canada, which took almost seven years to be built, has been operating at less than half the capacity of its first plant, also called a train, two of the four sources said. The facility's Train 1 has experienced technical issues with a gas turbine and with a Refrigerant Production Unit (RPU), according to two other industry sources. The sources all spoke on condition of anonymity because the information was not public. In response, a LNG Canada spokesperson said a new-build facility at the joint venture's size and scale may face operational setbacks as it ramps up production and stabilizes. There has been at least one diversion by Shell of an empty LNG vessel to Peru, while other tankers remain close to the facility, LSEG ship tracking data showed. Ferrol Knutsen, a 170,520 cubic meters LNG tanker, was signaling that it was headed to the Kitimat port but then changed directions and is now off the coast of California on its way to Peru, according to LSEG ship tracking data. LNG Canada is a joint venture between Shell, Malaysia's Petronas (PGAS.KL) , opens new tab, PetroChina (601857.SS) , opens new tab, Japan's Mitsubishi Corp (8058.T) , opens new tab and South Korea's KOGAS (036460.KS) , opens new tab. When fully operational, LNG Canada will have a capacity to export 14 million metric tonnes per annum (mtpa), according to company statements. So far the facility has exported four cargoes, including its first shipment on July 1. Another shipment is expected in the coming days, the LNG Canada spokesperson said. The pace of exports from the plant will increase as it moves through early operations and into a steady shipping cadence, the spokesperson said. "In regular operations in Phase 1, we anticipate loading one export cargo from our facility every two days," the spokesperson added. https://www.reuters.com/business/energy/shell-led-lng-canada-faces-problems-it-ramps-up-production-sources-say-2025-07-29/
