2025-08-14 11:27
Fed interest rate cut near certain after inflation data Focus on US Producer Price Index, jobless claims data Aug 14 (Reuters) - Gold prices edged down on Thursday due to a slight uptick in the U.S. dollar index, although expectations of a Federal Reserve interest rate cut in September limited losses. Spot gold fell 0.1% to $3,353.19 per ounce as of 1050 GMT. U.S. gold futures for December delivery were down 0.2% to $3,401.60. Sign up here. The dollar (.DXY) , opens new tab steadied from an over-two-week low against its rivals, making gold more expensive for holders of other currencies. "The marginal reduction in gold since this morning could be just chalked down to a slightly firmer dollar," said Nitesh Shah, commodities strategist at WisdomTree. However, growing signals that the Fed has room to cut U.S. interest rates were giving gold support, Shah said. The likelihood of a Fed rate cut in September is now near certain, after new data showed U.S. inflation increased at a moderate pace in July and Treasury Secretary Scott Bessent said he thought an aggressive half-point cut was possible given recent weak employment numbers. Non-yielding gold thrives in a low-interest-rate environment. Meanwhile, benchmark 10-year U.S. Treasury yields held near a one-week low. Investors awaited U.S. economic data scheduled later in the day, including the U.S. Producer Price Index and weekly jobless claims, for further cues on the direction of the Fed's monetary policy. "The rate cuts are very much fairly priced in but towards the end of this year we'll start to see a market movement upwards in gold as concerns around higher indebtedness really start to move the metal higher," Shah said. Meanwhile, U.S. President Donald Trump threatened "severe consequences" if Russia's President Vladimir Putin did not agree to peace in Ukraine at their upcoming summit, but also said the meeting could be followed by a second one which would include Ukraine's leader. Elsewhere, spot silver lost 0.5% to $38.30 per ounce, platinum gained 0.6% to $1,348.10 and palladium rose 0.7% to $1,130.02. https://www.reuters.com/world/china/gold-edges-lower-firmer-dollar-investors-await-us-economic-data-2025-08-14/
2025-08-14 11:27
H1 profit slipped despite higher revenue, more boxes moved Impact of Suez crisis, tariffs, Gemini venture hiked costs Savings programme underway, of which Gemini to bring half May improve revenue, but shipping costs are eating up gains FRANKFURT, Aug 14 (Reuters) - Container shipping firm Hapag-Lloyd (HLAG.DE) , opens new tab on Thursday reported a 3.1% decline in first-half net income and lowered the top end of its full-year earnings forecast, which has prompted it to focus on cost savings over the next 12-18 months. CEO Rolf Habben Jansen told analysts that start-up spending on its Gemini cooperation with competitor Maersk (MAERSKb.CO) , opens new tab, fidgety customers amid changing U.S. trade policies, and virtual closure of the Suez Canal weighed on profits. Sign up here. "The Gemini transition cost was a three-million dollar digit figure," said Habben Jansen in a call with analysts, adding port congestions amid tariff to and fro, as well as costly alternatives to the Suez route had also led to spiralling costs. "A 1 billion euros (savings programme) is realistic to (be achieved) by the end of next year," he added. Houthi militant attacks on vessel owners in the Middle East forced shippers to avoid the region. Germany's Hapag-Lloyd, the world's fifth-largest shipping firm, earlier projected full-year earnings before interest and taxes ranging between 200 million euros and 1.1 billion euros, compared with a previously expected range of breakeven to 1.5 billion euros. Core profit was 24% lower at 619 million euros in the six months at the German company. Its stock in a small free float was 7.2% down at 1100 GMT. Net income in the first half fell 3.1% to 709 million euros ($829 million) while revenues were up 10% at 9.7 billion euros and transport volumes grew 10.6% to 6.7 million 20-foot-equivalent (TEU) containers. Gemini brings synergies from a network of 340 ships on seven trade corridors, which will begin to pay off from the second half of 2025, Habben Jansen said. But inflation, higher prices of shipyards, carbon permits and cleaner fuels could not be argued away. ($1 = 0.8549 euros) https://www.reuters.com/business/autos-transportation/hapag-lloyd-lowers-2025-earnings-forecast-seeks-savings-2025-08-14/
2025-08-14 11:08
At least 17 feared dead, more missing after heavy, sudden rain Disaster follows recent flood and mudslide in Uttarakhand Community kitchens for pilgrims washed away by flood waters SRINAGAR, India, Aug 14 (Reuters) - At least 17 people were feared dead and more missing following sudden, heavy rain in Indian Kashmir, an official said on Thursday. The disaster occurred in Chasoti town of Kishtwar district, a stopover point on a popular pilgrimage route. It comes a little over a week after a heavy flood and mudslide engulfed an entire village in the Himalayan state of Uttarakhand. Sign up here. The flood washed away a community kitchen and a security post set up in the village, said the official, who declined to be named because he was not authorised to speak to the media about the incident. "A large number of pilgrims had gathered for lunch and they were washed away. Scores of people as of now are missing," the official said. "The news is grim and accurate, verified information from the area hit by the cloudburst is slow in arriving," Omar Abdullah, the chief minister of India's federal territory of Jammu and Kashmir, said in a post on X. Television footage showed pilgrims crying in fear as water flooded the village. The disaster occurred at 11.30 am local time, Ramesh Kumar, the divisional commissioner of Kishtwar district, told news agency ANI, adding that local police and disaster response officials had reached the scene. "Army, air force teams have also been activated. Search and rescue operations are underway," Kumar said. A cloudburst, according to the Indian Meteorological Department, is a sudden, intense downpour of over 100 mm (4 inches) of rain in just one hour that can trigger sudden floods, landslides, and devastation, especially in mountainous regions during the monsoon. The local weather office in Srinagar predicted intense showers for several regions in Kashmir on Thursday, including Kishtwar, asking residents to stay away from loose structures, electric poles and old trees as there was a possibility of mudslides and flash floods. https://www.reuters.com/world/india/sudden-rainstorm-indian-kashmir-leaves-17-dead-scores-missing-2025-08-14/
2025-08-14 11:08
Treasury to revise clean energy tax credit rules Developers may face stricter cost and construction requirements Some firms accelerate projects amid regulatory uncertainty Aug 14 (Reuters) - The Trump administration is expected as soon as Monday to take another step toward curbing the growth of renewable energy in the United States by making it harder for companies to claim federal tax subsidies for wind and solar energy. The Treasury Department next week will reach a 45-day deadline, set by U.S. President Donald Trump in July, to revise rules governing who can qualify for clean energy tax credits that the Republicans' One Big Beautiful Bill Act is phasing out years earlier than planned. Sign up here. The rule under scrutiny centers around what it means for a project to be considered under construction, a definition that is critical to companies building facilities that require years of planning. The OBBBA requires projects to begin construction by July of next year or enter service by the end of 2027 to qualify for a 30% tax credit and bonuses that can push the subsidy even higher. Under previous law, the credits were available through 2032. In an executive order last month, three days after signing the OBBBA into law, Trump directed Treasury to restrict the use of safe harbors, rules that have allowed project owners for years to claim tax credits so long as they incur 5% of their costs or make meaningful physical progress before the credit expires. Washington policy advisory firm Capstone said it could see Treasury requiring developers to incur a higher percentage of costs, such as 10% or 15%. Under the physical work requirement, the agency could exclude off-site construction or require more contact with the government and proof of continuous work. The Treasury Department did not respond to a request for comment. Tightening the requirements would be the latest in a string of steps the administration has taken to stall development of wind and solar energy, which Trump says are unreliable, expensive, and dependent on Chinese supply chains. According to advisory firm Clean Energy Associates, the United States could lose about 60 gigawatts of planned solar capacity through 2030 if stricter "beginning of construction" rules are implemented. That would be enough electricity to power about 10 million homes. Project developers and financiers have leaned on the tax credit rules to guide their investment and construction decisions for the last decade. "The executive order and the uncertainty has actually had a more negative impact than the legislation itself," said Reagan Farr, CEO of solar project developer Silicon Ranch. In the six weeks since the executive order, some companies have stalled progress, while others have ramped up activity to start as many projects as possible, said Javad Asghari, a partner with the law firm Simpson Thacher who focuses on energy and infrastructure projects. Aaron Halimi, founder and president of San Francisco-based solar project developer Renewable Properties, described measures his company has taken to protect its access to subsidies he fears could be at risk. "We’ve taken many steps to safe harbor a large portion of our pipeline of projects we plan to deliver between now and end of 2029," Halimi said, including buying transformers and American-made panels, and increasing lines of credit for purchasing equipment. https://www.reuters.com/sustainability/climate-energy/trump-administration-unveil-tougher-solar-wind-subsidy-rules-2025-08-14/
2025-08-14 11:08
Sales expected to fall by 5% to 7% Third quarter saw "enormous" uncertainty, CEO says Shares down 8.8% FRANKFURT/DUSSELDORF, Aug 14 (Reuters) - German conglomerate Thyssenkrupp cut its full-year sales and investment forecasts on Thursday, blaming weak demand for its products as U.S. President Donald Trump's import tariffsdisrupt global trade in autos, machines and building materials. Weakness among automotive clients, who account for around a third of Thyssenkrupp's customer base and are being hit by U.S. import levies, was a major factor in the decision, as well as lower than expected third-quarter profits, the group said. Sign up here. "Trade disputes had a significant impact on our quarter and also left some skid marks in macroeconomic terms," Chief Financial Officer Axel Hamann said. "Many companies, especially customers, are waiting to see what happens or are taking a cautious approach," he told journalists. The company, with a broad portfolio that includes steelmaking and submarine production, now expects sales to fall by 5% to 7% during its fiscal year to September 30. It previously expected sales to drop by up to 3%. Investment plans were cut to between 1.4 billion and 1.6 billion euros ($1.6-$1.9 billion), from 1.6-1.8 billion euros. Thyssenkrupp said the introduction of tariffs had curbed international trade and hit global supply chains, and that things could get worse should the Israeli-Palestinian conflict in the Middle East escalate further. "The past quarter was characterised by enormous macroeconomic uncertainty," CEO Miguel Lopez said. Shares in the company, which is in the process of spinning off its submarine division TKMS in October, were 8.8% lower at 1045 GMT. Full-year adjusted earnings before interest and tax are now forecast to be at the lower end of the 0.6 billion to 1 billion euros guidance range, the company said. In its fiscal third quarter from April to June, adjusted EBIT rose 4% to 155 million euros, missing the 174 million average estimate in an analyst poll provided by the group. ($1 = 0.8544 euros) https://www.reuters.com/markets/europe/hit-by-trump-tariffs-thyssenkrupp-cuts-sales-investment-forecasts-2025-08-14/
2025-08-14 11:00
LONDON, Aug 14 (Reuters) - What matters in U.S. and global markets today By Mike Dolan , opens new tab, Editor-At-Large, Finance and Markets Sign up here. Spurred on by the U.S. President and Treasury Secretary, expectations for interest rate cuts are reaching a fever pitch, with markets now starting to price in a small chance of a half point cut as soon as next month as they await today's producer price report. On Wednesday, Scott Bessent said downward revisions to the U.S. payrolls meant the Federal Reserve needed to play catch-up. He said there was a "very good chance" of a 50 basis point reduction in September and that rates should "probably" be 150-175 bps lower. * Wall Street zoomed to new records on Wednesday, but stock futures stepped back a touch ahead of the PPI report but two-year Treasury yields continued to stalk three-month lows. Even though many Fed officials are still cautious about the prospects for a half point cut, Wall Street banks are starting to forecast as many as three cuts this year, arguing softer jobs growth, a lack of "pass-through" from tariffs to consumer prices, and a new appointee to the Fed board will tip the balance. * Thursday's producer price update for July will be important as details feed into the Fed's favored PCE inflation gauge. Annual headline and core PPI inflation are expected to pick up to 2.5% and 2.7%, respectively. Meantime, President Donald Trump said his pick for the next Fed Chair would be named "a little bit earlier" and he'd narrowed it down three or four names, despite indications earlier on Wednesday that as many as a dozen names had been considered. * Elsewhere, the inflation picture softened further given this week's slide in crude oil prices to two-month lows ahead of the critical U.S.-Russia summit in Alaska tomorrow. Japan's yen jumped to three-week highs, knocking the Nikkei stock index back sharply from record highs, as Bessent also said the Bank of Japan was "behind the curve" in tackling inflation there. Sterling hit six-week highs on the euro after the release of above forecast UK GDP data. Finally, riffing off the week's heady surge in risk appetite and rate cut bets, Bitcoin jumped to a new record high at $124,481. Make sure to check out today's column, where I discuss why political pressure on government statisticians and private forecasters risks sending markets down a rabbit-hole. Today's Market Minute * U.S. President Donald Trump threatened "severe consequences" if Russia's Vladimir Putin does not agree to peace in Ukraine but also said on Wednesday that a meeting between them could swiftly be followed by a second that would include the leader of Ukraine. * The announcement of the results of a U.S. probe into pharmaceutical imports and new sector-specific U.S. tariffs likely remains weeks away, four official and industry sources said, later than initially promised. * Investors are increasingly pricing in a "higher for longer" interest rate environment in the euro zone, with a potential cut in March seen as a temporary blip before borrowing rates climb back above 2%. * OPEC+ is widely believed to be pivoting from trying to bolster prices to rebuilding market share, but a recent decision by Saudi Arabia seems to be at odds with this strategy. Read the latest from ROI columnist Clyde Russell. * It's widely believed that U.S. President Donald Trump's insistence on lower interest rates is what's making life most difficult for Federal Reserve Chair Jerome Powell and his colleagues. But ROI columnist Jamie McGeever argues that what's causing the biggest headache for Fed officials is probably more prosaic: economic data. Chart of the day As Trump prepares to meet Russian President Vladimir Putin on Friday on prospects for ending the Ukraine war, the legacy of the conflict on the global economy is assessed. The added inflation fallout from 2022's invasion and energy price spike has dissipated largely but the United States emerges from the period with the highest inflation rate of the Group of Seven major economies. Today's events to watch * U.S. July producer price report (8:30 AM EDT) weekly jobless claims (8:30 AM EDT) * Richmond Federal Reserve President Thomas Barkin speaks * U.S. corporate earnings: Applied Materials, Tapestry, Amcor, Deere Want to receive the Morning Bid in your inbox every weekday morning? Sign up for the newsletter here. You can find ROI on the Reuters website , opens new tab, and you can follow us on LinkedIn , opens new tab and X. , opens new tab Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles , opens new tab, is committed to integrity, independence, and freedom from bias. https://www.reuters.com/business/finance/global-markets-view-usa-corrected-2025-08-14/
