2025-07-22 04:48
July 22 (Reuters) - JPMorgan Chase (JPM.N) , opens new tab is exploring plans to offer loans backed by clients' cryptocurrency holdings, including bitcoin and ethereum, as early as next year, the Financial Times reported on Tuesday, citing people familiar with the matter. The move comes as other major U.S. banks, including Bank of America (BAC.N) , opens new tab and Citibank (C.N) , opens new tab, are developing stablecoins amid a broader push for more crypto-friendly regulation in Washington. Sign up here. CEO Jamie Dimon, a longtime bitcoin skeptic, recently said that the bank will be involved in stablecoins. JPMorgan declined to comment to the FT. The bank did not immediately respond to a Reuters' request for comment outside regular business hours. In May, Dimon told investors that he is "not a fan" of the bitcoin universe citing concerns, including leverage, misuse, and money laundering issues in the system, ruling out getting into custody - storing crypto assets for clients - or expanding significantly even if regulations ease. "We're going to allow you to buy it, we're not going to custody it," he said, likening the approach to permitting behavior he personally disagrees with. https://www.reuters.com/business/finance/jpmorgan-considers-offering-loans-backed-by-clients-cryptocurrency-holdings-ft-2025-07-22/
2025-07-22 04:36
A look at the day ahead in European and global markets from Ankur Banerjee The incredible rise of the euro this year is sure to play a part in Europe Inc's performance as a steady but unspectacular start to the earnings season kicks up a notch with results due from the region's largest software maker SAP (SAPG.DE) , opens new tab. Sign up here. While tariff uncertainties linger ahead of an August 1 deadline, investors are pinning their hopes on resilient corporate earnings from Wall Street and European bellwethers to keep stocks and sentiment aloft. Investors will parse through quarterly results for any clues on the impact trade uncertainty has had on profitability and consumer demand, with the earnings so far described by RBC Capital Markets as "fine but not fabulous". SAP, which has been riding a boom in demand for its cloud-based offerings spurred by artificial intelligence, will report later on Tuesday as will UniCredit (CRDI.MI) , opens new tab and Julius Baer (BAER.S) , opens new tab. Focus will be on just how much the euro's rise has eaten into profits of the firms in the bloc's export-reliant economy after the single currency surged 9% in the April-June quarter. The euro is up 13% so far in the year as investors looked for alternatives to U.S. assets and to lower their dollar exposure in the wake of U.S. President Donald Trump's erratic trade policies. SAP had predicted back in April that for every 1 cent rise in the euro, its annual revenue could decline by around 30 million euros. The euro was last at $1.1688 compared to $1.1329 at the end of April. Earnings from luxury behemoth LVMH (LVMH.PA) , opens new tab and drugmaker Roche (ROG.S) , opens new tab this week will also be of interest. Tariffs and where they are headed remain on the agenda after diplomats said the EU is exploring wide-ranging "anti-coercion" measures which would let the bloc target U.S. services or curb access to public tenders in the absence of a deal. Trump has threatened 30% duties on imports from Europe if no agreement is signed before the August 1 deadline. Meanwhile, the 'will-he-won't-he' saga over Trump possibly firing Federal Reserve Chair Jerome Powell rumbles on. U.S. Treasury Secretary Scott Bessent said on Monday the entire Federal Reserve needed to be examined as an institution and whether it had been successful, further exacerbating worries about the independence of the U.S. central bank. Key developments that could influence markets on Tuesday: Earnings: SAP, UniCredit, Julius Baer Trying to keep up with the latest tariff news? Our new daily news digest offers a rundown of the top market-moving headlines impacting global trade. Sign up for Tariff Watch here. https://www.reuters.com/business/global-markets-view-europe-2025-07-22/
2025-07-22 00:58
Currencies trading in tight range Yen holds to gains following Japan's upper house election outcome Investors look for progress in more trade talks SINGAPORE, July 22 (Reuters) - The dollar traded in a tight range on Tuesday after a brief fall at the start of the week, as investors watched out for any progress on trade talks ahead of an August 1 deadline for countries to strike deals with the U.S. or face steep tariffs. The yen mostly held to gains from the previous session following results from a weekend upper house election in Japan that proved no worse than what had already been priced in, as focus now turns to how quickly Tokyo can strike a trade deal with Washington and Prime Minister Shigeru Ishiba's future at the helm. Sign up here. The Japanese currency was last a touch weaker at 147.65 in early Asia trade, after rising 1% on Monday in the wake of the election outcome. The bruising defeat suffered by Ishiba and his ruling coalition also drew just a modest response in the broader Japanese market, which returned from a holiday in the previous session. "The initial relief for the yen that the ruling coalition did not lose even more seats and that Prime Minister Ishiba plans to hang on to power is likely to prove short-lived," said MUFG senior currency analyst Lee Hardman. "The pick-up in political uncertainty in Japan could complicate reaching a timely trade deal with the U.S., posing downside risks for Japan's economy and the yen." With just slightly over a week to go before an August 1 deadline on tariffs, U.S. Treasury Secretary Scott Bessent said on Monday that the administration is more concerned with the quality of trade agreements than their timing. Asked whether the deadline could be extended for countries engaged in productive talks with Washington, Bessent said President Donald Trump would make that decision. Uncertainty over the eventual state of tariffs globally has been a huge overhang for the foreign exchange market, leaving currencies trading in a tight range for the most part, even as stocks on Wall Street have scaled fresh highs. "Nothing that happens on August 1 is necessarily permanent, so long as the U.S. administration remains willing to talk, as was indicated in Trump's letters from two weeks ago," said Thierry Wizman, global FX and rates strategist at Macquarie Group. The dollar was last steady after slipping in the previous session due in part to the yen's rise and a dip in U.S. Treasury yields, leaving sterling trading 0.03% lower at $1.3488. The euro fell 0.12% to $1.1684, with focus also on a rate decision by the European Central Bank later this week, where expectations are for policymakers to stand pat on rates. The European Union is exploring a broader set of possible counter measures against the United States as prospects for an acceptable trade agreement with Washington fade, according to EU diplomats. Against a basket of currencies, the dollar rose slightly to 97.94, after having fallen 0.6% on Monday. Also weighing on investors' minds has been worries about the Federal Reserve's independence, given Trump has railed repeatedly against Chair Jerome Powell and urged him to resign because of the central bank's reluctance to cut interest rates. "Our base case remains that solid U.S. data and a tariff driven rebound in inflation will keep the FOMC on hold into 2026, and that the resulting shift in interest rate differentials will drive a continued rebound in the dollar in the next few months," said Jonas Goltermann, deputy chief markets economist at Capital Economics. "But that view is clearly at the mercy of the White House's whims." Elsewhere, the Australian dollar eased 0.05% to $0.6522, while the New Zealand dollar fell 0.14% to $0.5960. https://www.reuters.com/world/africa/dollar-indecisive-investors-await-more-tariff-clarity-2025-07-22/
2025-07-22 00:46
July 22 (Reuters) - Australia's Champion Iron Ltd (CIA.AX) , opens new tab said on Tuesday Japan's Nippon Steel (5401.T) , opens new tab and Sojitz Corp (2768.T) , opens new tab will invest an initial C$245 million ($179.11 million) in its Kami iron ore project in Canada for an aggregate 49% interest. The investment follows an agreement that the three companies entered into in December 2024 for the project, which Champion Iron acquired in 2021. Sign up here. Following the initial closing, Champion will hold a 51% interest in the project, while Nippon Steel and Sojitz will have 30% and 19% stakes, respectively. Nippon Steel, Japan's largest steelmaker, recently closed its $14.9 billion acquisition of U.S. Steel after an 18-month-long pursuit. Champion expects the initial closing of the deal to occur in the second half of 2025. Shares of Champion Iron rose as much as 4.6% to A$5.04 in early trade. ($1 = 1.3679 Canadian dollars) https://www.reuters.com/markets/commodities/australias-champion-iron-secures-1791-million-nippon-steel-sojitz-canada-project-2025-07-22/
2025-07-22 00:30
BEIJING, July 22 (Reuters) - China needs to cut steel output from the coal-powered blast furnace process by more than 90 million metric tons from 2024's level to achieve its green steel target this year, researchers said in a report published on Tuesday. WHY IT'S IMPORTANT The global steel industry is responsible for around 8% of the world's carbon dioxide emissions and China accounts for more than half of global steel output. Sign up here. If China could meet its target of producing 15% of steel from electric arc furnace facilities this year, it could cut CO2 emissions by more than 160 million tons, nearly equivalent to the European Union steel sector's carbon footprint, analysts at the Helsinki-based Centre for Research on Energy and Clean Air said. BY THE NUMBERS China has lagged far behind its global peers in terms of electric arc-furnace steel share. The average share is around 30% globally, 71.8% in the United States, 58.8% in India and 26.2% in Japan, the centre said. From 2021 to the first half of 2025, China's blast furnace capacity utilisation rose from 85.6% to 88.6%, while electric-arc furnace utilisation fell from 58.9% to 48.6%, it added. KEY QUOTE "A credible strategy to curb emission-intensive production and rein in excess capacity would not only tackle the sector's structural issues but also ease global tensions," said Belinda Schaepe, an analyst at the Helsinki-based centre. CONTEXT China produced 1.005 billion tons of crude steel in 2024, with around 90% from blast furnace facilities. China's steel sector has been plagued by overcapacity, which has depressed prices and sparked growing protectionist backlash from global trade partners amid its burgeoning steel exports. The cleaner electric arc facilities have faced headwinds of high power costs, unstable scrap supply and growing losses. https://www.reuters.com/sustainability/climate-energy/china-needs-cut-2025-steel-output-meet-decarbonisation-target-report-says-2025-07-22/
2025-07-22 00:08
TAIPEI, July 22 (Reuters) - Taiwan's state-owned energy company CPC Corp said it is not in talks for "specific" shale gas fields in the United States, but it does not rule out any prospective partners and will make the most favourable decision based on its own evaluations. CPC (CHIP.UL) is in early stage discussions to buy shale-gas producing assets in the United States, three sources familiar with the matter told Reuters earlier this month, in a bid to secure natural gas supplies to fuel Taiwan's economy. Sign up here. In a statement late on Monday, CPC said U.S. shale gas has long been an important target area for the company because of its high quality, mature extraction technology and favourable investment environment. "CPC will not rule out any prospective partners and will make the most favourable decision based on the evaluation results," it said. "As for reports that CPC is in the process of discussing the acquisition of specific shale gas fields in the United States, that is not true," the company added, without elaboration. Taiwan has pledged to increase its purchase of energy from the United States as a way of reducing its yawning trade surplus and head off tariffs. In March, CPC signed an agreement with Alaska Gasline Development Corp to buy LNG and invest in the Alaska LNG project which will transport gas south from Alaska's remote north via pipeline, to be shipped as LNG to Taiwan, Japan and South Korea. https://www.reuters.com/business/energy/taiwans-cpc-denies-specific-us-shale-gas-acquisition-talks-2025-07-22/
