2025-08-05 07:54
MUMBAI, Aug 5 (Reuters) - The Indian rupee weakened on Tuesday as U.S.-India trade tensions escalated, though likely central bank intervention helped avert a slide to a record low. The currency was at 87.8275 to the U.S. dollar at 1:15 p.m. IST, weaker than Monday's close of 87.6550. It earlier fell to 87.8850, near the February record low of 87.95. Sign up here. The rupee opened at 87.85 per dollar on possible central bank intervention, with traders saying the RBI sold dollars through state-run banks ahead of market open to help prevent a breach of the 88 level. "The central bank has absorbed the tariff-related impact and prevented the big figure to change for now," a currency trader with a private bank said. U.S. President Donald Trump again threatened to substantially raise tariffs on Indian goods, citing India's continued purchases and resale of Russian oil. India's foreign ministry vowed to take "all necessary steps" to protect national interests and economic security, fuelling fears of an escalating trade row after U.S. President Donald Trump imposed surprise 25% tariffs on Indian imports last week. Traders warned that persistent foreign outflows from Indian equities may accelerate if talks stall, further pressuring the local currency. President tariff threats on India, outflows from domestic equity markets, panic buying by importers and dollar index unable to find a clear direction are adding to pressure on the rupee, said Kunal Sodhani, vice president at Shinhan Bank India. "For USD/INR, breaking the onshore all-time highs of 87.95 will open doors to uncharted territory and may let the pair test 88.50 levels, while any close below 87.60 may bring consolidation back to the pair." https://www.reuters.com/world/india/indian-rupee-down-likely-saved-all-time-low-by-rbi-intervention-2025-08-05/
2025-08-05 07:51
Aug 5 (Reuters) - Canadian miner First Quantum Minerals (FM.TO) , opens new tab signed a $1 billion gold streaming agreement with a subsidiary of its peer Royal Gold (RGLD.O) , opens new tab, the two companies said in a statement on Tuesday. Gold streaming is a financing mechanism in which a buyer makes an upfront payment to a miner in exchange for purchasing future production from the miner, usually at a predetermined price. Sign up here. Under the deal, First Quantum will receive $1 billion upfront from Royal Gold AG in exchange for gold deliveries referenced to copper production from First Quantum's Kansanshi mine in Zambia. The agreement is expected to close on Wednesday. First Quantum will initially receive 20% of the spot gold price for each ounce delivered, rising to 35% if certain credit or leverage targets are met. Royal Gold said the agreement gives it immediate cash flow from a long-life, large-scale asset. The company expects to receive about 12,500 ounces of gold from the stream this year and an average of 35,000 to 40,000 ounces annually over the next ten years. https://www.reuters.com/markets/commodities/canadas-first-quantum-strikes-1-billion-gold-streaming-deal-with-royal-gold-2025-08-05/
2025-08-05 07:50
US earnings boost market sentiment, tech stocks surge Fed rate cut odds rise to 94% after weak US jobs data Oil tumbles as demand outlook darkens TOKYO/LONDON, Aug 5 (Reuters) - Global stocks rose for a second session on Tuesday and the U.S. dollar steadied as investors raised bets the Federal Reserve would act to prop up the world's largest economy. U.S. shares rallied on Monday on generally positive earnings reports and increasing bets for a September rate cut from the Fed after disappointing jobs data on Friday. Sign up here. Oil prices edged lower after output increases by OPEC+, while gold hovered near a one-week high. "There are signs of weakness in parts of the U.S. economy, that plays to the view that maybe not in September, but certainly this year that the Fed's still on course to ease potentially twice," said Rodrigo Catril, senior currency strategist at National Australia Bank. In Europe, the STOXX 600 (.STOXX) , opens new tab rose 0.4% in early trading, up for a second day, echoing the strength across Asia markets, where MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) , opens new tab was up 0.8%. "The question is whether bad news is bad news (economy slowing down) or it's good news (Fed moving towards rate cuts). Our view is that depends on how bad is the data and what's priced in," Jefferies strategist Mohit Kumar said. "A modest weakening of the economy would be good news as it should be more easing from the Fed. However, a sustained and sharp rise in unemployment rates would be a negative as it would raise concerns over growth and earnings," he said. In currencies, the dollar edged up modestly, rising 0.35% against the Japanese yen at 147.6, while the euro fell 0.25% to $1.1543. The dollar index , which tracks the greenback against a basket of six other currencies, rallied 0.34% after a two-day decline. Friday's soft U.S. nonfarm payrolls data added to the case for a cut by the Fed, and took on another layer of drama with President Donald Trump's decision to fire the head of labour statistics responsible for the figures. Odds for a September rate cut now stand at about 94%, according to CME Fedwatch, from a 63% chance seen on July 28. Market participants see at least two quarter-point cuts by the end of this year. News that Trump would get to fill a governorship position at the Fed early also added to worries about politicization of interest rate policy. Trump again threatened to raise tariffs on goods from India from the 25% level announced last month due to its Russian oil purchases, while New Delhi called his attack "unjustified" and vowed to protect its economic interests. With concern mounting about the fragility of the underlying economy and the potential for oversupply, oil prices dropped for a fourth day, leaving Brent crude futures down 1% at two-week lows at $68.05 a barrel. "Whether the threat of secondary sanctions on India's financing of Russia is the core goal remains to be seen. Or indeed, this move may be increased U.S. leverage on India to open up its domestic economy to agricultural imports or commitments to buy U.S. energy instead," strategists at ING said. Second-quarter U.S. earnings season is winding down, but investors are still looking forward to reports this week from companies including Walt Disney (DIS.N) , opens new tab and Caterpillar (CAT.N) , opens new tab. Tech heavyweights Nvidia (NVDA.O) , opens new tab, Alphabet (GOOGL.O) , opens new tab and Meta (META.O) , opens new tab surged overnight, and Palantir Technologies (PLTR.O) , opens new tab raised its revenue forecast for the second time this year on expectations of sustained demand for its artificial intelligence services. U.S. stock index futures , were up 0.2-0.4%, pointing to a modest rise at the start of trading. Data on Tuesday showed business activity in the euro zone grew at a slightly faster pace in July than in June, but remained sluggish. A separate UK survey showed British businesses recorded their largest drop in new orders in almost three years in July and cutting staff by most in six months. Data from Asia's two biggest economies showed resilience in their service sectors. In Japan, the S&P Global final services purchasing managers' index (PMI) to 53.6 in July from 51.7 in June for the strongest expansion since February. China's services activity last month at its fastest pace in more than a year. Bitcoin , meanwhile, fell 0.6% to $114,235, while gold rose 0.1% to $3,375 an ounce. https://www.reuters.com/world/china/global-markets-wrapup-4-2025-08-05/
2025-08-05 07:37
BP to review upstream portfolio and consider more cost cuts BP shares have underperformed rivals for years BP Q2 profit $2.4 billion vs forecast $1.8 billion Raises dividend by 4%, keeps share buyback pace LONDON, Aug 5 (Reuters) - BP (BP.L) , opens new tab will launch a review of how best to develop and monetise its oil and gas production assets and consider more cost cuts to boost shareholder returns, the oil major said on Tuesday, as it beat second-quarter profit expectations. BP, under pressure from investors after years of underperforming rivals and also the target of activist investor Elliott, reaffirmed plans to divest $20 billion in assets by 2027 and reduce debt and costs. Sign up here. "We will conduct a thorough review of our portfolio of businesses to ensure we are maximizing shareholder value moving forward – allocating capital effectively. We are also initiating a further cost review," CEO Murray Auchincloss said. "BP can and will do better for its investors." The company raised its quarterly dividend by 4% to 8.32 cents and will repurchase $750 million in shares before third-quarter results, keeping its buyback pace steady. The portfolio review will guide how and in what sequence BP will allocate its $13–$15 billion annual investment budget, given new projects in Azerbaijan, Iraq, Libya, and Abu Dhabi and exploration successes in Namibia and Brazil, Auchincloss told Reuters. BP, which also has a plan to boost its U.S. production both onshore and offshore, on Monday called its Brazil Bumerangue block discovery its largest in 25 years. Auchincloss said BP may seek partners for some upstream assets. "It's a nice problem to have," he said. BP has already achieved $1.7 billion of its $4–$5 billion cost-cutting target for 2023–2027. Finance Chief Kate Thomson said benchmarking data coming in over the summer could prompt further reductions. The review comes after Auchincloss talked to incoming Chair Albert Manifold, who replaces Helge Lund next month. Lund had come under pressure for supporting BP’s previous pivot to renewables, which has weighed on its share performance since 2020. Rumours have abounded about BP becoming a takeover target, pushing rival Shell (SHEL.L) , opens new tab to deny media reports in June that it was in merger talks with BP. BP reported second-quarter adjusted net income of $2.4 billion, down 14% year-on-year, but ahead of analysts' average forecast of $1.8 billion. Its shares were up 2.6% at 1032 GMT, outperforming the European energy index (.SXEP) , opens new tab. BP's quarterly performance was boosted by a 33% profit increase at its customers and products division, driven by strong oil trading, higher volumes, and a 20% rise in earnings at its Castrol unit. That contrasted with a weaker quarter in oil trading at Shell. Auchincloss said the process to sell Castrol, the biggest piece of its divestment programme, was going "fine". BP's gas and low-carbon earnings also exceeded expectations. BP has completed $3 billion in divestments towards its $3–$4 billion 2025 goal. Net debt fell by $1 billion to $26 billion, compared with a target range of $14–$18 billion by 2027. Brent crude oil averaged $67 per barrel in April-June, down from $75 in the previous quarter and $85 a year earlier. https://www.reuters.com/business/energy/bp-vows-do-better-investors-profit-tops-forecast-2025-08-05/
2025-08-05 07:25
NEW DELHI/SINGAPORE, Aug 5 (Reuters) - Russia-backed Indian refiner Nayara Energy has exported its first gasoline cargo since the privately-owned company was sanctioned by the European Union on July 18, according to four shipping sources and LSEG data. Oil tanker Tempest Dream, carrying about 43,000 metric tons of gasoline, sailed out on August 4, according to the sources and shipping data. Sign up here. The vessel is heading to Sohar, Oman, the shipping data showed. https://www.reuters.com/business/energy/indias-nayara-energy-ships-out-first-gasoline-exports-since-sanctions-sources-2025-08-05/
2025-08-05 07:10
TOKYO, Aug 5 (Reuters) - Japan recorded its highest-ever temperature of 41.8 degrees Celsius (107.2 degrees Fahrenheit) on Tuesday, prompting the government to advise residents to stay indoors and promise steps to ease weather-related damage to rice crops. Readings in the eastern city of Isesaki, in Gunma prefecture, surpassed the previous high of 41.2 C marked last week in the western city of Tamba in Hyogo prefecture, the country's meteorological agency said. Sign up here. So far this summer, more than 53,000 people have been taken to hospital for heat stroke, according to the Fire and Disaster Management Agency. "Today is murderously hot," said 63-year-old auto worker Takeshi Ishikawa, who was filling his water bottle at a fountain in central Tokyo. "If it gets to 42 degrees, it would be hotter than my bath that I prepare at 40 degrees." Average temperatures across Japan have continued to climb after marking a record high in July for the third year in a row, while the northeastern region along the Sea of Japan has registered critically low levels of rainfall, raising concerns over the rice harvest. High temperatures have caused a proliferation of stink bugs in some rice-growing areas, even as the government is set to officially adopt a new policy on Tuesday of increased rice production to prevent future shortages. "We need to act with speed and a sense of crisis to prevent damage" from high temperatures, Farm Minister Shinjiro Koizumi said at a press conference. The government will offer support for pest control and measures to tackle drought, he said. Extreme heat in 2023 had damaged the quality of rice, causing an acute shortage last year that was exacerbated by the government's misreading of supply and demand. That led to historically high prices of the all-important staple food, causing a national crisis. https://www.reuters.com/business/environment/japan-sets-record-high-temperatures-worries-mount-over-rice-crops-2025-08-05/
