2025-08-06 06:42
Aug 6 (Reuters) - Global miner and trader Glencore (GLEN.L) , opens new tab reported a 14% drop in first-half adjusted core profit on Wednesday, weighed down by weaker coal prices, lower copper production, and operational challenges at some of its mines. The company, which had considered shifting its primary listing from London, said it will retain the listing in the UK, citing that a move to the United States would not add value for shareholders. Sign up here. Glencore's adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell to $5.43 billion in the first half of the year, from $6.34 billion last year. Last week, the company announced a target of $1 billion in cost savings by the end of 2026, as part of a review of its industrial assets, following a 26% slump in copper production. "While there is much uncertainty around the impact of geopolitics and trade in the shorter term, we remain of the view that, in certain commodities, the scale and pace of required resource development will struggle to meet the demand projections for such materials into the future," CEO Gary Nagle said. "We are well-placed to participate in bridging this gap," Nagle said. Glencore said its total shareholder returns announced for 2025 stand at $3.2 billion. https://www.reuters.com/markets/europe/glencores-interim-profit-slips-14-weaker-coal-prices-lower-copper-output-2025-08-06/
2025-08-06 06:36
RISHIKESH, India, Aug 6 (Reuters) - Heavy rain and blocked roads hampered rescue efforts in India's Himalayan state of Uttarakhand on Wednesday, a day after sudden flooding and landslides killed four people and left dozens missing. Teams of army and disaster force rescuers struggled to reach Dharali village, a popular tourist spot that serves as a pit-stop before climbing to the Hindu pilgrimage town of Gangotri, in Uttarkashi district, as landslides blocked a major highway and heavy rain continued to pelt the region, local media and authorities said. Sign up here. "The number of missing persons is unknown, however the relief efforts have continued through the night. We are trying to rescue people and take them to safety," Harshavardhan, an army colonel leading rescue efforts, said in an X post shared by the Indian army. Roads leading to the affected areas have either caved in or blocked by boulders, making access difficult, Prashant Arya, a local official in Uttarkashi, told Reuters. Mobile and electricity towers were also washed away in the flood waters, making connectivity difficult, leading authorities to give rescue workers satellite phones. The army camp in Harsil, four km (2.5 miles) from the flooded village of Dharali, was also hit by flash floods and eleven army personnel were missing, NDTV news channel said. "Additional army columns along with tracker dogs, drones, logistic drones, earthmoving equipment, etc have been moved ahead to supplement the resources at Harsil to hasten the efforts," the army's central command said in a post on X. Around 130 people were rescued by Tuesday night, the chief minister of Uttarakhand state, Pushkar Singh Dhami, told news agency ANI, adding that army helicopters were on standby to provide supplies to those stranded in the affected areas. TV news channels showed floodwaters and mud surging down a mountain and crashing into the village, sweeping away houses and roads as people ran for their lives. The mudslide cleaved through Dharali village, burying some houses, according to a video update shared by the state chief minister's office. Uttarakhand is prone to floods and landslides, which some experts blame on climate change. https://www.reuters.com/business/environment/heavy-rains-landslides-hamper-rescue-efforts-northern-indian-state-dozens-2025-08-06/
2025-08-06 05:18
SINGAPORE, Aug 6 (Reuters) - The dollar remained fixed in its recent trading channel on Wednesday, with investors choosing to stay on the sidelines after another round of weak data and as U.S. President Donald Trump prepared to fill a coming vacancy on the Federal Reserve's Board of Governors. Trump said on Tuesday he will decide on a nominee by the end of the week and had separately narrowed the possible replacements for Fed Chair Jerome Powell to a short list of four. Sign up here. Data out the same day also showed the U.S. services sector activity unexpectedly flatlined in July even as input costs climbed by the most in nearly three years, underscoring the hit from Trump's tariffs on the economy, which has also begun to bite corporate earnings. Still, those did little to sway the dollar, as traders were hesitant to take on fresh positions ahead of news on who would fill the Fed board vacancy. Concerns are mounting that partisan loyalty would invade the staid world of central bank policy. The dollar was last 0.1% weaker against the yen at 147.37, while the euro ticked up 0.1% to $1.1586. Sterling last bought $1.331, up 0.07% so far on the day. "I still think that between now and the end of the week, if Trump is going to make an announcement about who he wants to fill the vacant board seat, depending on... how credible (the markets) view that candidate to be, I think that has the potential to prompt some reaction across everything," said Ray Attrill, head of FX research at National Australia Bank (NAB). "For me, that's...potentially the biggest swing factor for the next sort of 48 hours or so." While moves in the dollar have been more subdued this week, the currency has yet to recover from its steep losses on Friday, when it clocked its largest one-day percentage fall in nearly four months following an alarming jobs report. Against a basket of currencies, the dollar was last down 0.07% at 98.666 , still some distance away from its peak of 100.25 hit on Friday before the nonfarm payrolls figures. Traders continue to price in a 86.5% chance of a Fed cut in September, with about 56 basis points worth of easing expected by the year-end. But data such as Tuesday's services ISM report underscore the fine line the Fed has to tread, as policymakers weigh rising price pressures from Trump's tariffs against signs of a weakening U.S. economy. "The services ISM has obviously got that kind of stagflationary whiff about it... that's obviously a bit of a two-edged sword in terms of what does that mean for policy," said NAB's Attrill. "At the moment, I think we're sort of the view that maybe there's a bit too much confidence in the market about the certainty of a September move." U.S. Treasury yields moved slightly higher, rising by 1.6 - 2.8 basis points across the curve, after a $58 billion auction of 3-year notes , which was seen as somewhat soft by analysts, with demand equivalent to 2.53 times the notes on sale. More supply will hit the market this week with $42 billion in 10-year notes on Wednesday and $25 billion in 30-year bonds on Thursday. In other currencies, the Australian dollar rose 0.4% to $0.6494, while the New Zealand dollar gained 0.4% to $0.59255. The Indian rupee appreciated 0.2%, and was little changed after the Reserve Bank of India held its key repo rate steady at 5.5% as expected by a large majority of economists in a July 18–24 Reuters poll, following a surprise 50 basis point cut in June. New Zealand's jobless rate rose slightly in the second quarter as the labour market remained soft, data on Wednesday showed, supporting the view that the central bank will proceed with a flagged 25 basis-point interest cut at its August policy meeting. https://www.reuters.com/world/middle-east/dollar-drifts-investors-await-fed-governor-replacement-2025-08-06/
2025-08-06 04:44
Japan must balance budget, cut spending, LDP's Kono says Calls for big spending, tax cuts keeping bond market volatile Veteran lawmaker says era of 'Abenomics' is over TOKYO, Aug 6 (Reuters) - Japan must balance its budget and push the central bank to raise interest rates to alleviate concern over the country's finances, Taro Kono, touted as a candidate to become the next prime minister, said on Wednesday. Kono also criticised former Prime Minister Shinzo Abe's "Abenomics" reflationist policies, saying the country needs to shift to policies that focus more on structural reforms and cuts to government expenditure. Sign up here. The remarks by Kono, a former minister in charge of digitalisation, pit him against Sanae Takaichi, another candidate vying for the premiership, who has advocated in favour of big spending and loose monetary policy. "The size of the budget has been growing and growing, so it's time for us to say we really need to balance the budget," cut unnecessary expenditure and streamline the social security system, Kono told a news briefing at the Foreign Correspondents' Club of Japan. Political calls to cut taxes and boost payouts would also increase the budget deficit, a concern that has heightened volatility in the bond market, he said. "That's why I've been saying the government needs to ask the Bank of Japan to raise interest rates and in return, the government will streamline expenditure and try to balance the budget," he said. Kono, a veteran lawmaker who has also served as foreign minister, ran unsuccessfully in the ruling Liberal Democratic Party's (LDP) leadership race last year where incumbent premier Shigeru Ishiba won. The LDP's huge loss in last month's upper house election has led to growing calls from within the party for Ishiba to step down, and to hold another race to choose a new leader. Kono's hawkish fiscal stance makes him an outlier in Japan's current political circle, where most ruling and opposition party lawmakers favour boosting spending to support a fragile economy. Kono said Abenomics - a policy introduced by deceased former premier Abe in 2013 that combines massive monetary stimulus, flexible fiscal spending and a growth strategy - focused too much on reflating the economy. With the economy out of deflation and experiencing rising inflation, Japan needs a new economic policy that puts more emphasis on structural reform, he said. "There are still people in LDP, mostly former members of the Abe faction ... who still don't want to say the age of Abenomics is over," Kono said. "I think they are wrong. We definitely need to bring in structural change." https://www.reuters.com/markets/asia/japans-veteran-lawmaker-kono-urges-boj-raise-rates-2025-08-06/
2025-08-06 04:31
A look at the day ahead in European and global markets from Stella Qiu From economic data to corporate earnings, the anticipated impact of President Donald Trump's tariffs is finally showing up for all to see, but stock investors don't seem too concerned. Sign up here. Data showed the U.S. service sector hit stalling speed in July as employment further weakened and input costs climbed by the most in nearly three years. Combined with a brutal jobs report on Friday, that rekindled stagflation fears and put the Federal Reserve in a tough spot. U.S. earnings results, though they have been generally upbeat in the second quarter, are starting to show clearer tariff impact. Caterpillar (CAT.N) , opens new tab warned that U.S. tariffs would cost it up to $1.5 billion this year and Taco Bell parent Yum Brands (YUM.N) , opens new tab cautioned against higher costs and muted consumer demand. Even AI chip stock Advanced Micro Devices (AMD.O) , opens new tab reported disappointing data center revenue, sending its shares down 6.6% after the bell. That is one reason that equity markets have turned cautious, with investors caught in the tug of war between still robust earnings and tariffs. Judging by the impressive bounce in shares following U.S. jobs figures, it seems buying the dip still wins for now. The other big news of the day is ChatGPT maker OpenAI, which is in early talks for a potential secondary stock sale, valuing the company at around $500 billion, Reuters reported. In Asia, most shares were in the red but Japan and Australia outperformed with a gain of about 0.6%. Wall Street futures recovered from an earlier dip, with the Nasdaq futures up 0.1% and S&P 500 futures rising 0.2%. European stock futures are bracing for a higher open, with EUROSTOXX 50 futures up 0.3%. Currencies have moved little, with the dollar struggling to recover from the jobs-induced slump on Friday. All eyes are on Trump's pick to fill a coming vacancy on the Federal Reserve's Board of Governors. Trump said the decision will be made by the end of the week, while ruling out Treasury Secretary Scott Bessent as a contender to replace the current chief Jerome Powell, whose term ends in May 2026. The Treasury market braced for a $42 billion auction of 10-year notes after a three-year auction went poorly on Tuesday. Key developments that could influence markets on Wednesday: -- Euro zone retail sales for June -- U.S. 10-year Treasury bond auction -- Earnings results from Disney, Uber, McDonald's 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/world/china/global-markets-view-europe-2025-08-06/
2025-08-06 04:22
MUMBAI, August 6 (Reuters) - The Indian rupee inched up on Wednesday, notching small gains before the central bank's policy decision, set against the backdrop of fresh trade frictions with the United States. The rupee was quoted at 87.74 against the U.S. dollar at 09:42 am IST, up from 87.80 on Tuesday. The Indian currency recovered despite losses in most Asian peers. Sign up here. "At these levels, the rupee will move on its own momentum and today’s decision adds another layer," a currency trader at a private bank said. "Markets are firmly positioned for no change in rates, especially after U.S. tariff developments. A rate cut now would be a real surprise and could trigger a decent reaction." The Reserve Bank of India will announce its interest rate decision at 10:00 a.m. IST. A majority of economists in a Reuters poll expect the key policy rate, which stands at 5.50%, to remain at the same level. Major lenders, including State Bank of India and ICICI Bank, are calling for a rate cut, citing the need to support growth. The RBI’s policy decision comes at a time of escalating trade tensions between India and U.S. following President Donald Trump’s fresh threat of substantial tariffs over India’s continued purchases of Russian oil. The remarks have unnerved markets and added pressure on the rupee, which was within a whisker of its all-time low of 87.95 on Tuesday. With uncertainty around how far Washington might go on tariffs, traders are closely watching how much the central bank will factor in these external risks while framing its policy guidance. https://www.reuters.com/world/india/rupee-claws-back-ground-ahead-central-bank-rate-call-us-tariff-risks-linger-2025-08-06/
