2025-07-21 20:18

Yen firms as markets had priced in Japan election result Ruling coalition loses majority in upper house Tariffs, ECB & Fed meetings in focus Bessent says Fed needs to be examined as an organization NEW YORK, July 21 (Reuters) - The yen climbed across the board on Monday after beleaguered Japanese Prime Minister Shigeru Ishiba vowed to hang on as leader even though his ruling coalitionlost its majority in Sunday's upper house elections, an outcome that was not exactly a shock and has been mostly priced in. Investors braced for market disquiet ahead of a deadline on U.S. tariff negotiations. Sign up here. Japanese markets were closed for a public holiday, leaving the yen as the main indicator of possible investor angst. The dollar, on the other hand, fell against most currencies, in line with the decline in U.S. Treasury yields, analysts said. In afternoon trading, the Japanese currency gained 1% to 147.315 yen per dollar, although not far off from the 3-1/2-month low of 149.19 yen hit last week as investors fretted about Japan's political and fiscal outlook. The yen also nudged 0.4% higher against the euro to 172.27 and against sterling to 198.64, up 0.4%. Ishiba's Liberal Democratic Party returned 47 seats, short of the 50 it needed to ensure a majority in Japan's 248-seat upper chamber, where half the seats were up for grabs. He vowed to stay on in his role even as some of his own party discussed his future and the opposition weighed a no-confidence motion. "The elections were not as awful an outcome for the Prime Minister Shigeru Ishiba as analysts had predicted. The PM's party managed to minimize seat losses and Ishiba was not forced to resign his position," said Juan Perez, director of trading at Monex USA in Washington. "This overall plays as a welcome tune for Japanese yen developments since the reality is far more optimistic than anticipated with the PM promising to stay in power and work out differences in coming up with fiscal policy." The election result, while not entirely a shock to markets, also comes at a tricky time for a country trying to get a tariff deal with U.S. President Donald Trump before an August 1 deadline. TARIFF UNCERTAINTY Investor focus has also been firmly on Trump's global tariff salvos, with a Financial Times report last week indicating the U.S. president was pushing for steep new tariffs on European Union products. U.S. Commerce Secretary Howard Lutnick said on Sunday he was confident the United States can secure a trade deal with the EU, but said August 1 was a hard deadline for tariffs to kick in. EU diplomats said the bloc was exploring a broader set of counter measures against the U.S. as prospects for an acceptable trade agreement fade, even though a negotiated solution was still their preferred option. The euro was up 0.4% at $1.1681, while sterling last fetched $1.3488, up 0.6%. The European Central Bank is due to meet this week and is expected to hold rates steady after a string of cuts, while investor attention has been on whether the Federal Reserve succumbs to pressure from Trump to cut interest rates. In the United States, Trump appeared near the point of trying to dismiss Fed Chair Jerome Powell last week, but backed off with a nod to the market disruption that would likely follow. The U.S. central bank is widely expected to hold rates steady at its July meeting. U.S. Treasury Secretary Scott Bessent on Monday said the entire Fed needed to be examined as an institution and whether it had been successful. Speaking with CNBC, he cited what he called "fear-mongering over tariffs" despite the emergence thus far of little, if any, inflationary effect. "If this were the (Federal Aviation Administration) and we were having this many mistakes, we would go back and look at why. Why has this happened?" he said. "All these PhDs over there, I don't know what they do." Traders are fully pricing in a Fed rate cut by the October meeting with the odds of a second rate cut this year not fully priced in yet. The dollar index , which measures the U.S. currency against six others, was down 0.5% at 97.969. "I think the dollar topped out last week, while foreign currencies have bottomed, so foreign currencies have come back stronger here," said Marc Chandler, chief market strategist, at Bannockburn Forex in New York. "I think the dollar is very much connected to interest rates. The 10-year yield is off more than six basis points." In cryptocurrencies, bitcoin fell more than 1% to $116,788 , with investors profiting from recent gains in the run-up to the signing into law the GENIUS Act last Friday. https://www.reuters.com/business/yen-gains-broadly-japans-ishiba-stays-dollar-weakens-2025-07-21/

2025-07-21 19:26

BERLIN, July 21 (Reuters) - German Chancellor Friedrich Merz said on Monday the government had not yet decided whether it would take a stake in the German division of state-owned Dutch power grid operator TenneT and was still in talks with the Netherlands. The Netherlands said last month it would announce in September whether it would sell a minority stake in TenneT Germany or pursue a partial IPO, in what could be one of Europe's biggest deals in 2025. Sign up here. The Dutch government embarked on a dual track process for TenneT Germany after a partial sale to German state lender KfW failed to materialise last June. “The discussion within the federal government is currently ongoing and has not yet been concluded,” Merz said in a joint news conference with Norwegian Prime Minister Jonas Gahr Store. Norway's vast sovereign wealth fund is considering a multi-billion dollar investment in TenneT Germany, German newspaper Handelsblatt wrote earlier this month, citing people familiar with the matter. Asked whether he would support this, Store said the fund had already made "significant" investments in German companies. "There are many opportunities in Germany to find companies to invest in", Store said. https://www.reuters.com/business/energy/merz-says-berlin-still-considering-stake-tennets-german-business-2025-07-21/

2025-07-21 19:14

EU sanctions target Russian crude supply Sanctions unlikely to affect supplies, analysts say Iran nuclear talks could affect oil market dynamics US tariffs on EU imports could influence oil demand HOUSTON, July 21 (Reuters) - Oil prices settled slightly lower on Monday as the latest European sanctions on Russian oil were expected to have minimal impact on supplies, but losses were curbed by investors weighing a potential drop in diesel supplies. Brent crude futures settled down 7 cents, or 0.1%, to $69.21 a barrel. U.S. West Texas Intermediate crude settled down 14 cents, or 0.2%, to $67.20. Sign up here. The European Union approved on Friday the 18th package of sanctions against Russia over its war in Ukraine, which also targeted India's Nayara Energy, an exporter of oil products refined from Russian crude. "The market right now thinks that supply will still make it to market in one way, shape or another. There is not too much concern," said John Kilduff, a partner at Again Capital in New York. Kremlin spokesperson Dmitry Peskov said on Friday that Russia had built up a certain immunity to Western sanctions. The EU sanctions followed U.S. President Donald Trump's threats last week to impose sanctions on buyers of Russian exports unless Russia agrees to a peace deal within 50 days. ING analysts said the part of the package likely to have an effect is the EU import ban on refined products processed from Russian oil in third countries, though ING said that could prove difficult to monitor and enforce. Curbing some of crude's losses during afternoon trade on Monday were investor concerns around diesel supplies resulting from the sanctions package, analysts said. "As the day has gone on, the diesel crack spread started to firm quite a bit, suggesting that the market cannot ignore the fact that any disruptions in Russian oil supply could tighten supplies of diesel and that seems to be giving us a bit of support today," said Phil Flynn, senior analyst with Price Futures Group. Low-sulphur gasoil futures' premium to Brent crude closed on Monday at $26.31, up around 3%, and marking its highest close since February 2024. "We have a bit of room for error on the crude side, barrels can be shuffled around a bit, but it is harder to shuffle around tight supplies of diesel," Flynn added. Iran, another sanctioned oil producer, is due to hold nuclear talks with Britain, France and Germany in Istanbul on Friday, an Iranian Foreign Ministry spokesperson said on Monday. That follows warnings by the three European countries that a failure to resume negotiations would lead to international sanctions being reimposed on Iran. In the United States, the number of operating oil rigs fell by two to 422 last week, the lowest total since September 2021, Baker Hughes said on Friday. "Oil-focused drilling is expected to remain at subdued levels through the balance of the year," StoneX analyst Alex Hodes said in a note on Monday. "We aren’t anywhere close to prices that merit a significant pullback in investment though," Hodes added. U.S. tariffs on EU imports are set to kick in on August 1, though U.S. Commerce Secretary Howard Lutnick said on Sunday he was confident the United States could secure a trade deal with the bloc. U.S. tariffs are potentially negative for oil demand and economic activity, Again Capital's Kilduff said. Some support may come from oil inventory data if it shows tight supply, said IG market analyst Tony Sycamore. https://www.reuters.com/business/energy/oil-slips-little-impact-seen-eu-sanctions-russia-2025-07-21/

2025-07-21 18:58

EU to ramp up retaliation plans as US tariff deal prospects dim Bessent says Fed needs to be examined as an institution Silver, palladium up 2% July 21 (Reuters) - Gold prices gained over 1% to hit a five-week high on Monday as the dollar and U.S. bond yields weakened amid uncertainty ahead of a U.S. deadline of August 1 for countries to strike trade deals with Washington or face more tariffs. Spot gold was up 1.3% at $3,394.23 per ounce at 02:34 p.m. ET (1834 GMT), hitting its highest since June 17. U.S. gold futures settled 1.4% higher at $3,406.40. Sign up here. The U.S. dollar index (.DXY) , opens new tab was down 0.6%, making dollar-denominated gold more affordable for buyers using other currencies, while benchmark 10-year U.S. Treasury yields hit a more than one-week low. "With the August 1st deadline looming, it brings a level of uncertainty to the market and that certainly is supportive," said David Meger, director of metals trading at High Ridge Futures. The European Union is exploring a broader set of possible counter-measures against the U.S. as prospects for an acceptable trade agreement with Washington fade, according to EU diplomats. On the interest rate front, traders are pricing about a 59% chance of a rate cut by the U.S. Federal Reserve in September, according to the CME FedWatch Tool , opens new tab. U.S. Treasury Secretary Scott Bessent said the entire Federal Reserve needed to be examined as an institution. Talk of earlier-than-expected U.S. rate cuts is building, with speculation around a possible replacement of Fed Chair Jerome Powell and reshaping of the Fed adding to market jitters, Meger said. Gold is considered a hedge against uncertainty and tends to perform well in a low interest rate environment. Data showed the world's leading gold consumer, China, brought in 63 metric tons of the precious metal last month, the lowest amount since January. Its imports of platinum in June fell 6.1% from the prior month. Spot silver gained 2.1% to $38.99 per ounce, platinum also rose 1.4% to $1,440.75 and palladium was 2.1% higher at $1,266.04. https://www.reuters.com/world/china/gold-hits-five-week-high-dollar-yields-ease-spotlight-trade-2025-07-21/

2025-07-21 17:38

Crypto sector rallies to $4 trillion BitGo adds to recent crypto IPO rush Policy wins and regulatory momentum build July 21 (Reuters) - Crypto custody startup BitGo said on Monday it has confidentially filed for a U.S. listing, joining a wave of companies looking to capitalize on strong market momentum. The crypto sector's climb to a $4-trillion market value has reignited interest for initial public offerings, with clearer regulation, corporate treasury adoption, and institutional inflows fueling a new wave of new listings. Sign up here. Bitcoin, the world's largest and best-known cryptocurrency, recently hit an all-time high and breached the $120,000 mark. "These are the best market conditions the crypto space has seen in years, and companies want to take advantage of that," said Matt Kennedy, senior strategist at Renaissance Capital, a provider of IPO-focused research and ETFs. "These startups know that the IPO window can shut unexpectedly, especially in a volatile space like crypto, so they're looking to strike while the iron's hot." Founded in 2013, BitGo is one of the largest crypto custody firms in the United States. It stores and protects digital assets for clients, a role that has gained importance as institutional interest in crypto grows. In mid-2023, it raised $100 million at a $1.75 billion valuation. CRYPTO IPO BOOM The sector's rapid ascent has opened the floodgates for IPO filings, with crypto exchange Bullish recently disclosing its IPO paperwork. Crypto-focused asset manager Grayscale and Gemini, the digital assets exchange founded by Tyler and Cameron Winklevoss, have also confidentially filed to go public. "Many crypto companies have matured. After more than a decade, they've built stable client bases, some with SaaS-like margins and predictable cash flows," said Kat Liu, vice president at IPO research firm IPOX. Last week, U.S. President Donald Trump signed a law to create a regulatory regime for stablecoins, potentially allowing the dollar-pegged digital assets to become an everyday way to make payments and move money. Stablecoin issuer Circle (CRCL.N) , opens new tab went public in June in a blowout market debut. https://www.reuters.com/technology/bitgo-joins-crypto-ipo-rush-sector-hits-4-trillion-market-value-2025-07-21/

2025-07-21 17:35

ABUJA, July 21 (Reuters) - Nigeria's economy expanded by 3.13% year-on-year in the first quarter of 2025, the statistics office said on Monday, following the rebasing of its gross domestic product to better align with the current economic landscape. The economy grew to 372.822 trillion naira ($243.7 billion) after rebasing, Statistician-general Adeyemi Adeniran, told a news conference in the capital. Sign up here. The GDP growth at 3.13% in the first quarter, compared with 2.27% in the same quarter last year, was lower than a Reuters poll of analysts who had expected growth to expand by 4.9%. "Following the benchmarking of the estimates, the performance of the GDP in Q1 of 2025 was driven mainly by the service sector, which recorded a growth rate of 4.33% and contributed 57.15% to the aggregate GDP," Adeniran said. Oil production during the quarter was at 1.6 million barrels per day, compared with 1.57 million bpd in same quarter last year. Adeniran said the rebasing GDP reflected changes in the country's economy over time. "This rebasing exercise... not only involves the change in the base year, which moved from 2010 to 2019 but also includes methodological updates," he added. Several economic sectors, including marine, fishing shipping and ports, arts, culture, tourism, and e-commerce, have grown significantly since the last GDP rebasing in 2014, warranting their inclusion, the stats office had said. The 2014 rebasing had positioned Nigeria as Africa's largest economy, surpassing South Africa, but the country has since lost ground due to naira devaluations under President Bola Tinubu's administration. Tinubu's lightning reform push in the first weeks of his administration sparked hope that he could finally unleash the full potential of Africa's sluggish economic giant. But two years on, the key planks of his economic overhaul - devaluing the naira and scrapping subsidies - have triggered the worst cost-of-living crisis in a generation and are yet to deliver faster growth. https://www.reuters.com/world/africa/nigerias-economy-expanded-313-yy-first-quarter-2025-07-21/