2025-07-28 09:23

LONDON, July 28 (Reuters) - Hedge funds fled technology stocks at the fastest pace in 12 months in the latest week, just as the S&P 500 (.SPX) , opens new tab reached all-time highs, a note to Goldman Sachs (GS.N) , opens new tab clients and seen by Reuters said. The S&P 500, which includes seven tech stocks in its top 10 largest constituents by market value, has surged roughly 28% since its 2025 low, while the Nasdaq Composite (.IXIC) , opens new tab has jumped 38% in that time. Sign up here. As of Friday, the S&P 500's forward price to earnings ratio, which reflects the value of a company's stock relative to its projected future earnings, was 23.11, around five-month highs, according to LSEG/Datastream. "U.S. equities valuations (such as price earnings ratios) are now 30% higher than their recent decade average, while 10-year yields remain stubbornly high and volatile. The future path of equities may depend partly on a decline in long-term rates; however, we do not seem to be there yet," Lombard Odier Investment Managers head of macro Florian Ielpo said in a note on Friday. Globally, hedge funds sold tech stocks, some of the most richly valued equities, more than any other sector last week, the Goldman Sachs note said. Rather than shorting the sector, hedge funds tended to ditch long bets and exit trades, the bank said. A short bet is designed to profit from a drop in an asset price. This week's exodus was the largest the bank had seen since July 2024, Goldman Sachs said. Hedge funds fleeing tech stocks centered on trading in North America and Europe. Every kind of tech stock was sold, including semiconductor chip companies, as well as those in software and IT services, the bank said. Meanwhile, shares in consumer staples - companies that sell items that people purchase regardless of economic conditions - were among the most net bought U.S. stock sectors this week, Goldman said. Hedge funds piled into these stocks for the fourth straight week and their trades were almost entirely long positions - those that will profit if the stock prices rise. The kind of companies whose shares hedge funds bought included those that sell food and beverages and personal care products. https://www.reuters.com/business/finance/hedge-flow-hedge-funds-ditch-tech-buy-essentials-goldman-sachs-says-2025-07-28/

2025-07-28 07:58

Euro down against most peers after initial, knee-jerk rise Fed, Bank of Japan expected to hold rates steady this week China and US negotiating ahead of August 12 deadline TOKYO/LONDON, July 28 (Reuters) - The dollar rose against major currencies on Monday after the U.S. and the EU struck a framework trade pact, the latest in a flurry of deals to avert a global trade war, with investors also looking to this week's U.S. and Japanese central bank meetings. Meeting in Scotland on Sunday, U.S. President Donald Trump and European Commission President Ursula von der Leyen said the deal provided for an import tariff of 15% on EU goods, half the rate Trump had threatened from August 1. Sign up here. That follows last week's U.S. agreement with Japan, while top U.S. and Chinese economic officials will resume talks in Stockholm on Monday aiming to extend a truce by three months and keep sharply higher tariffs at bay. The euro was last down 0.7% at $1.16530 , set for its biggest daily fall in 10 weeks, reversing an initial knee-jerk rise in Asia trade as investors' focus shifted to what an easing in global trade tensions meant for the dollar overall. "The mood music on U.S. trade negotiations has been a little brighter following agreements with Japan and the EU," said Paul Mackel, global head of FX research at HSBC. "If more ‘trade deals’ are reached, this could help to reduce this source of policy uncertainty that has weighed against the dollar, at least for now. It could also see other factors such as relative yields becoming more influential." The dollar tumbled sharply earlier this year, particularly against the euro, as fears that dramatically higher tariffs on trade with most of its major partners would hurt the U.S. economy caused investors to consider shifting out of U.S. assets. Normally the gap between yields on government bonds is a major factor for currency moves, but at present the euro is significantly higher than the gap between U.S. and euro zone yields would imply. The euro also fell against the yen and sterling, having hit a one-year high on the Japanese currency and a two-year high on the pound at the start of trade. , The dollar was stronger elsewhere, up 0.5% on the yen at 148.37, and strengthening against the pound, which was 0.24% lower at $1.3413. As concerns subside about the economic fallout from punishing tariffs, investor attention is shifting to corporate earnings and central bank meetings in the United States and Japan in the next few days. Both the Fed and the Bank of Japan are expected to hold rates steady at policy meetings this week, but traders will watch subsequent comments to gauge the timing of the next moves. Investors will also be watching to see Trump's reaction to the Fed's decision. The U.S. president has been putting the Fed under heavy pressure to make significant rate cuts, and Trump appeared close to trying to fire Powell last week, but backed off with a nod to the market disruption that would likely follow. In addition, quarterly results are due in coming days from Apple, Microsoft, Amazon and Facebook parent Meta Platforms META.O , opens new tab, four of the whose stocks heavily influence benchmark indexes. They matter for currency investors if strong results cause an acceleration of flows back into U.S. assets. The dollar also climbed against the safe-haven Swiss franc, up 0.74% at 0.8011 francs. https://www.reuters.com/world/middle-east/dollar-strengthens-after-us-eu-agree-tariff-deal-2025-07-28/

2025-07-28 07:26

HAMBURG, July 28 (Reuters) - Rain has raised water levels on the river Rhine in Germany, with much of the river around normal levels, allowing cargo vessels to sail with full loads, commodity traders said on Monday. Dry weather and a heatwave in June and July meant the river became too shallow for vessels to sail fully loaded. Ship operators imposed surcharges on freight rates to compensate for vessels sailing partly empty, increasing costs for cargo owners. Sign up here. Shallow water continues to hinder shipping on some northern river sections, including around Duisburg and Cologne. But the picture has improved and vessels are able to sail about 70% full in Cologne and 90% full in Duisburg. More rain is forecast in the coming days, which traders said could raise water levels enough to allow ships to sail fully loaded later this week. The impact of a recent heatwave had been stronger than expected, drying fields that drain into smaller streams and rivers feeding into the Rhine. The Rhine is an important shipping route for commodities such as grains, minerals, ores, chemicals, coal and oil products, including heating oil. German companies faced supply bottlenecks and production problems in summer 2022 after a drought led to unusually low water levels on the river. https://www.reuters.com/business/environment/most-rhine-river-back-normal-levels-after-rain-2025-07-28/

2025-07-28 07:16

July 28 (Reuters) - CK Hutchison (0001.HK) , opens new tab said on Monday it was in talks with a consortium pursuing its $22.8 billion ports business to add a Chinese "major strategic investor" to the bid, after Beijing flagged a probe into the deal amid heightened Sino-U.S. tension. The Hong Kong-based conglomerate made the comment the day after exclusive talks for a deal - which includes two ports along the Panama Canal - ended with the consortium, led by U.S. investment firm BlackRock (BLK.N) , opens new tab and Italian billionaire Gianluigi Aponte's family-run shipping company MSC. Sign up here. The canal's strategic value in global trade and U.S. President Donald Trump's call to end what he described as Chinese control over it has made the deal a flashpoint for U.S.-China trade tension, with media reporting , opens new tab that Beijing was unhappy , opens new tab with the deal and was reviewing it for security and antitrust issues. Owned by billionaire Li Ka-shing and founded and listed in Hong Kong, CK Hutchison has a global footprint with businesses in areas as varied as ports and telecommunications. Here is a look at its origins and current standing globally: ORIGINS Li Ka-shing established Cheung Kong Industries in 1950 at the age of 21. The tycoon acquired a controlling stake in Hutchison Whampoa nearly three decades later , opens new tab. Hutchison Whampoa traced its roots to a small dispensary firm in China's southern Guangzhou that was established in 1828 and a dock and repair yard operator founded on the Pearl River in 1863. Li Ka-shing carried out a major reorganisation of the business in 2015 by merging his two flagship companies, Hutchison Whampoa and Cheung Kong. This created CK Hutchison, one of Asia's largest conglomerates with a global presence. GLOBAL STANDING CK Hutchison has interests in every continent and operates in more than 50 countries, employing over 300,000 people as of June last year. About half its operating earnings come from its telecoms and infrastructure operations, with three-quarters derived from countries and territories outside mainland China. TELECOMMUNICATIONS The telecommunications business is the group's most profitable segment and brought in a quarter of its operating profit in 2024 , opens new tab. Its CK Hutchison Group Telecom unit handles European operations, while Indonesia, Vietnam and Sri Lanka are under Hutchison Asia Telecommunications. Italy and the UK are the top business contributors for the European unit, while Ireland and Sweden are the fastest-growing markets. Three, its telecom brand, operates in eight countries including Ireland, the UK, Austria and Sweden. Hutch in Sri Lanka and Vietnamobile in Vietnam are the prominent brands in Asia. INFRASTRUCTURE The group's infrastructure operations are anchored by CK Infrastructure (1038.HK) , opens new tab and contributed just under a quarter of its operating profit in 2024, making this segment the second-largest profit earner. CK Infrastructure manages assets across energy, transport, water infrastructure, waste management and other related businesses across the world. Its interests include UK Power Networks, Northern Gas Networks and Canadian Power. It is the largest foreign infrastructure investor in Australia, and also invests in toll roads and bridges in China, and infrastructure materials in Hong Kong. CKI holds the largest stake in Power Assets Holdings (0006.HK) , opens new tab which supplies electricity and gas to millions of consumers across continents. PORTS AND RELATED SERVICES The group's sprawling maritime empire , opens new tab extends across 24 countries, with interests in 53 ports and 295 berths. These include container terminals in five of the world's 10 busiest ports. CK Hutchison's busiest ports include Shenzhen's deep water Yantian port, Mingdong and Pudong terminals in Shanghai, Hong Kong's Kwai Tsing Port, container terminals in Belgium, Germany, and the Netherlands, and Westports Malaysia. The network of ports and terminals is at the centre of increasing geopolitical sensitivity surrounding critical trade infrastructure. The preliminary deal with the BlackRock-led group included the sale of 43 ports comprising 199 berths in 23 countries. CK Hutchison, meanwhile, would maintain stakes in three of the world's 10 busiest container ports. Ahead of the deal, the ports business contributed around 15% of the conglomerate's earnings before interest, tax, depreciation and amortisation (EBITA). RETAIL The conglomerate is a major player in the global health and beauty landscape with an expansive footprint of nearly 17,000 stores across 30 markets. Retail contributed 20% to the group's operating earnings in 2024. AS Watson, which owes its lineage to the old Guangzhou dispensary, has a diverse portfolio spanning personal care, health and beauty products, food and fine wine, and consumer electronics and electrical appliances. Its notable brands include health and beauty retailers Watsons, Rossmann and Superdrug, as well as the Hong Kong-based supermarket chain PARKnSHOP. FINANCE & INVESTMENTS, OTHERS The finance and investment portfolio serves as a strategic complement to CK Hutchinson's core operations, accounting for less than a fifth of its operating earnings. It manages substantial cash reserves and liquid investments while overseeing a number of partially owned enterprises spanning multiple sectors. https://www.reuters.com/business/ck-hutchison-global-conglomerate-caught-us-china-trade-spat-2025-03-20/

2025-07-28 07:15

Heavy rain causes landslides and flooding in northern China Over 4,400 people relocated due to extreme weather conditions China allocates 50 million yuan for disaster recovery in Hebei HONG KONG, July 28 (Reuters) - Swollen rivers, waterways and reservoirs across China exacerbated flooding and landslides on Monday which killed at least four people, as authorities warned of more intense rains and heightened disaster risks in coming days. Forty one rivers across the country have flooded, CCTV said, citing China's Ministry of Water Resources. The Ministry said it had issued flood warnings for small and midsize rivers and mountain torrents. Sign up here. Heavy rains intensified around Beijing and surrounding provinces on Monday, including those in central China such as Hunan and northern Inner Mongolia. Four people died in a landslide in northern Hebei and eight people are missing. In the suburban area of Miyun in Beijing, more than 4,400 people have been resettled after flash floods and landslides floored many villages, state broadcaster CCTV reported. Images circulated on China's Wechat app showed areas of Miyun where cars and trucks were floating on a flooded road where water levels had risen so high that it had submerged part of a residential building. Electricity cuts are also affecting more than 10,000 people, in the area, CCTV said. Northern China has seen record precipitation in recent years, exposing densely populated cities, including Beijing, to flood risks. Some scientists link the increased rainfall in China’s usually arid north to global warming. China's Central Meteorological Observatory said that heavy rainfall would continue to drench northern China over the next three days. Beijing issued its highest level flood alert on Monday, the official Xinhua news agency said. The storms are part of the broader pattern of extreme weather across China due to the East Asian monsoon, which has caused disruptions in the world's second-largest economy. Xiwanzi Village in Shicheng Town, near Miyun Reservoir, was severely affected, CCTV said on Monday with an additional 100 villagers transferred to a primary school for shelter. It comes after the maximum flood peak flow into the Miyun reservoir reached a record high of 6550 cubic meters per second, Beijing authorities said on Sunday. Two high-risk road sections have been sealed in Beijing's Pinggu district, authorities said. WIDESPREAD In neighbouring Shanxi province, videos from state media showed roads inundated by strong gushing currents and submerged vegetation including crops and trees. Shaanxi province, home to China's historic city of Xian, also issued flash flood disaster risk warnings on Monday. Authorities are carrying out search and rescue work across cities including Datong, where a driver in a Ford car has lost contact while driving in the floods, the People's Daily reported. Two were dead and two missing in Hebei province, CCTV said on Sunday morning. Overnight rain dumped a record 145 mm (5.7 inches) per hour on Fuping in the industrial city of Baoding. In Hunan's Liudiequan grand canyon in Chunkou town, water rose so rapidly on Sunday that a tourist was swept away, CCTV said. China's National Development and Reform Commission said on Monday that it was urgently arranging 50 million yuan ($6.98 million) to support Hebei. The funds would be used to repair damaged roads and bridges, water conservancy embankments, schools and hospitals in the disaster area. The NDRC said it was "promoting the restoration of normal life and production as soon as possible." Chinese authorities closely monitor extreme rainfall and severe flooding are, as they challenge the country's ageing flood defences, threaten to displace millions and wreak havoc on China's $2.8 trillion agricultural sector. ($1 = 7.1675 Chinese yuan renminbi) https://www.reuters.com/sustainability/climate-energy/intense-rains-lash-china-swelling-waterways-rivers-landslide-kills-four-2025-07-28/

2025-07-28 07:08

July 28 (Reuters) - Spanish renewable energy and water company Cox (COXGA.MC) , opens new tab has submitted an offer to take over Iberdrola's (IBE.MC) , opens new tab assets in Mexico worth around 4 billion euros ($4.69 billion), newspaper El Confidencial said on Monday, citing unnamed sources close to the process. Spanish utility Iberdrola hired investment bank Barclays to sell 15 renewable power plants in Mexico as it seeks to exit the country on concerns about the legal and tax stability in the country, El Confidencial reported last week. Sign up here. Iberdrola already sold 55% of its assets in the country to the Mexican government for $6 billion in 2024, which the Mexican government called at the time a "new nationalisation" of the electricity market. Iberdrola and Cox, which is present in Mexico, did not immediately respond to requests for comment. ($1 = 0.8532 euros) https://www.reuters.com/sustainability/climate-energy/cox-makes-47-bln-offer-iberdrolas-mexican-assets-el-confidencial-says-2025-07-28/