2025-07-18 06:38
JAKARTA, July 18 (Reuters) - Indonesia is still negotiating details of its recently-reached trade deal with the United States after Washington lowered tariff rates on the Southeast Asian country, and is pursuing exemptions for its exports of palm oil and nickel, an official said on Friday. The two countries reached a trade deal this week that led to a reduction in the threatened U.S. proposed tariff rate to 19% from 32%. The deal was one of only a handful reached so far by the Trump administration ahead of the August 1 negotiation deadline with numerous countries. Sign up here. Susiwijono Moegiarso, a senior official at the country's economic ministry, told reporters that the two sides were still negotiating the finer details of the agreement, adding that the 19% rate will be imposed on top of existing sectoral tariffs. Indonesia has asked the United States to exempt its exports of cocoa, rubber, crude palm oil, coffee and nickel from the levy, he said, adding that U.S. technology products will also be exempted from Indonesia's "local content" rules, which require companies to use locally-made components in its manufacturing. Indonesia is the world's biggest palm oil producer and the biggest supplier to the United States, accounting for 85% of its total imports in 2024. "This is a good opportunity, this will become a good factor for us," Susiwijono said. "The deal should be good to support our exports." Indonesia will also buy jets for its flag carrier Garuda Indonesia (GIAA.JK) , opens new tab from Boeing, and its state energy firm Pertamina (PERTM.UL) will also import energy from the United States, subject to business reviews, Susiwijono said. He added that all U.S. goods imported into Indonesia will face zero tariffs, with the exception of alcoholic drinks and pork, and some U.S. goods will be exempted from import quota rules. A statement from Indonesia's economic ministry said the trade deal with U.S. included agreement of easier import permits for U.S. goods, protection of intellectual property rights, and for Indonesia to comply with international standard on export and import of goods with nuclear components. https://www.reuters.com/business/aerospace-defense/indonesia-still-negotiating-details-exemptions-us-tariff-deal-official-says-2025-07-18/
2025-07-18 06:35
July 18 (Reuters) - Energy major BP (BP.L) , opens new tab said on Friday it had agreed to sell its U.S. onshore wind business, bp Wind Energy, to U.S.-based electricity transmission systems operator LS Power. BP has been divesting assets and partnerships over increasing investor pressure to improve profitability after its shares underperformed rivals. Sign up here. The deal comes under CEO Murray Auchincloss' plans to cut BP's investments in renewable energy and ramp up spending in oil and gas, in efforts to boost returns. bp Wind Energy will be owned and operated under LS Power's portfolio company Clearlight Energy, BP said. https://www.reuters.com/business/energy/bp-sell-us-onshore-wind-business-ls-power-2025-07-18/
2025-07-18 06:17
SEOUL, July 18 (Reuters) - More than 5,000 people in South Korea have been forced into shelters as heavy rain pounded parts of the country for a third day, with the deluge killing at least four people and destroying property and infrastructure, the safety ministry said on Friday. Torrential rain warnings remain in effect for most of the country's western and southern regions and the weather service has advised extreme caution against landslides and flooding through Saturday. Sign up here. Some parts in the south including the city of Gwangju were hit by record precipitation of more than 400 millimetres (16 inches) in the past 24 hours as of early on Friday, the safety ministry said. Four people have died and one remained missing, it said. Two were trapped in cars on flooded roads and another died in a basement under flood water in the central South Chungcheong province, it said. A driver was also killed after a 10-metre-high (33 ft) roadside wall collapsed on top of a moving vehicle on Wednesday in Osan, some 44 kilometres (27 miles) south of Seoul, fire agency officials said. South Korean President Lee Jae Myung, who has been vocal about stepping up the government's role in disaster prevention and response, said while natural disasters were hard to prevent, more can be done to anticipate damage and warn the public. "I see there were cases where casualties occurred because of a poor response when the situation was reasonably predictable," he said at an emergency meeting on the weather on Friday, calling for all available resources to be deployed. https://www.reuters.com/business/environment/torrential-rain-pounds-south-korea-third-day-thousands-take-shelter-2025-07-18/
2025-07-18 06:16
LITTLETON, Colorado, July 18 (Reuters) - U.S. President Donald Trump has singled out the coal industry as a key driver of U.S. energy dominance, but there are currently no new U.S. coal plants under construction and utilities have identified quicker and cheaper paths to boost power supplies. In the first few months of Trump's second term, he has signed several executive orders and deployed federal funding aimed at reviving the coal mining and power sectors. read more read more read more read more Sign up here. But U.S. utilities continue to prioritize adding renewables, batteries, gas and nuclear power ahead of new coal-fired capacity based on the cost and efficiency. Even the coal export market has only limited growth potential, as Indonesia and Australia - much larger exporters - boast far quicker and cheaper access to key buyers in Asia, the only region showing a sustained increase in coal demand. That means that even with strong support from the federal government, the U.S. coal sector may still struggle to generate any sustained growth over the near to medium term as global energy systems continue to lean towards cleaner power supplies. AGING OUT There's been six times more coal power plants retired than constructed in the U.S. this century, which underscores the scope of the challenge facing even the most ardent coal bulls as they try to engineer an industry revival. Between 2000 and 2024, nearly 166,000 megawatts (MW) of outdated coal capacity was retired in the United States, according to data from Global Energy Monitor (GEM). And even though around 26,000 MW of new U.S. coal plants have been constructed since 2000, the newest - the Sandy Creek Energy Station in Texas - came online over a decade ago. This has caused total U.S. coal power generation capacity to drop by around 42% in the last quarter century, to around 194 gigawatts, according to Ember. The rapid retirement pace reflects the age of the U.S. coal power network, as more than 80% of all U.S. coal power plants were built between 1950 and 1990, according to the U.S. Energy Information Administration (EIA). And over 75% of the remaining plants are already 40 years old or more, exceeding their expected lifespan. Several power networks have delayed the closure of some aged plants on the grounds that keeping them operating will avert potential power shortages. And the Trump administration has exempted several coal plants from new emissions standards that would have forced them to close within the next decade. read more However, the power generation sector is handling less and less coal as more plants have been retired and replaced by other forms of generation. Indeed, since 2000 there has been a 65% decline in the amount of coal used by the power sector, data from the Energy Institute shows. There is thus little appetite among utilities to construct new coal plants, given the plethora of alternatives available to them that can generate power more quickly and cheaply and with fewer emissions. COAL CRUTCH The drop in coal-fired U.S. power has led to a sharp fall in domestic coal mine output, which has more than halved since 2000 to just over half a billion short tons in 2024, EIA data shows. Wyoming (237 million tons), West Virginia (85 million tons), Pennsylvania (43 million tons) and Kentucky (28 million tons) were the top coal producing states in 2023. Lower mine output has triggered steep cuts to the number of people engaged in coal mining, which peaked this century in 2011 at around 91,600, but contracted to around 45,500 by 2023, EIA data shows. Every major coal mining state has been affected by layoffs, with some harder hit than others. Kentucky has seen coal employee levels drop by over 70% since 2011, while Pennsylvania and Virginia have seen employee numbers fall by nearly half. EXPORT CHALLENGE The hardships resulting from these mass layoffs have helped turn the coal mining sector, which is primarily found in Republican "red" states, into an influential political force, as candidates look to tout their industry-friendly credentials. This has certainly been the case with Trump. Beyond encouraging power networks to increase use of coal in generation, the Trump administration has recently approved mine expansions on federal land in order to boost supplies for export to Japan and South Korea. Targeting Asia makes sense given that the region's buyers already account for over half of all U.S. thermal coal shipments, data from Kpler shows, as well as 80% of global coal consumption. However, U.S. market share in the region can only grow so much, as rival exporters such as Indonesia still boast a significant advantage in terms of shipping times and cost. The journey time for a possible coal shipment from Westshore export port in British Columbia - the main exit point for coal mined in the Western U.S. - to Japan is around 15 days, according to LSEG. In contrast, the journey time from the largest coal export point in Indonesia to Japan is nine days. In addition to cutting the journey time by over a third, Indonesian coal exporters can also offer lower coal costs and larger cargo volumes, an attractive combination for large-scale importers. That means that U.S. vendors will likely only be able to eke out piecemeal sales to Asian buyers, while bigger exporters secure larger and more regular trade flows to the region's utilities. In combination with declining coal demand by power plants at home, this will likely leave the coal mining sector struggling to generate sustained demand for its output, regardless of how much support it enjoys in Washington, DC. The opinions expressed here are those of the author, a columnist for Reuters. Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI can help you keep up. Follow ROI on LinkedIn , opens new tab and X , opens new tab. https://www.reuters.com/markets/commodities/trumps-push-comeback-coal-may-turn-ashes-2025-07-18/
2025-07-18 06:16
India dealers widen discount to $10/oz this week China premiums slip on lower demand India's June gold imports fall to two-year low July 18 (Reuters) - Gold demand in India remained subdued this week, as near record-high prices kept buyers at bay and prompted dealers to widen discounts to lure them, while elevated rates curtailed activity across other major Asian hubs as well. Indian dealers were offering a discount up to $10 an ounce over official domestic prices - inclusive of 6% import and 3% sales levies - up from the last week's discount of up to $8. Sign up here. "Jewellery stores all over the country are seeing fewer customers. People aren't ready to buy just yet... They're holding off, hoping prices will come down," said a Kolkata-based jeweller. Domestic gold prices were trading around 97,500 rupees per 10 grams on Friday after hitting an all-time peak of 101,078 rupees last month. Gold discounts could have risen sharply due to weak demand, but supplies are limited because of a sharp fall in imports, said a Mumbai-based bullion dealer with a private bank. India's gold imports in June fell 40% from a year ago to 21 tons, their lowest level in more than two years, amid sluggish demand. In China, the world's top gold consumer, dealers quoted discounts of $5 per ounce to $10 premium on spot rates , down from the premiums of $10-$25 charged last week. "In China, I don't see too much physical buying interest at this moment due to the summer holiday. Maybe from October, you can expect the demand to pick up," said Peter Fung, head of dealing at Wing Fung Precious Metals. In Hong Kong, gold was sold at $1-$2 premiums, while dealers in Singapore sold gold at par with the global benchmark to a premium of up to $2.20. In Japan, bullion traded between a $0.50 discount and a $1 premium. https://www.reuters.com/world/china/asia-gold-discounts-widen-india-elevated-prices-dull-activity-2025-07-18/
2025-07-18 06:11
Dollar index heads for 0.72% rise after strong retail sales data US currency still faces pressure from Trump's attacks on Fed chief Yen pressured as Japan's coalition facing tough weekend election TOKYO, July 18 (Reuters) - The dollar headed for a second straight weekly gain against major peers, buoyed by some solid U.S. economic data that supported the view the Federal Reserve can afford to wait a while longer before cutting interest rates again. The yen remained on the back foot heading into upper house elections on Sunday in Japan, with polls suggesting the ruling coalition is at risk of losing its majority - a development that would stir policy uncertainty and complicate tariff negotiations with the U.S. Sign up here. Bitcoin hovered just above $120,000, after this week pushing to an all-time peak of $123,153.22, with the U.S. Congress passing a bill to create the framework for dollar-pegged stablecoins. The dollar index , which measures the currency against six leading counterparts, edged up to 98.57 as of 0534 GMT, putting it on track for a 0.72% weekly advance and building on the previous week's 0.91% rally. The dollar index climbed as high as 98.951 on Thursday for the first time since June 23 after U.S. data showed retail sales rebounded more than expected in June and first-time applications for unemployment benefits dropped to a three-month low last week. Earlier in the week, a report showed consumer prices increased by the most in five months in June, suggesting tariffs were starting to have an impact on inflation. Traders currently price about 45 basis points of U.S. rate cuts for the remainder of the year, down from closer to 50 basis points at the start of the week. At the same time, the dollar index remains 9.15% lower over the course of this year, following a steep selloff in March and April when President Donald Trump's erratic trade policies undermined confidence in U.S. assets, sending the currency, Treasury bonds and Wall Street stocks all lower. Clouds of uncertainty still hang over the dollar though, which has been shaken in recent days and weeks by fiscal worries from Trump's massive spending and tax cut bill, as well as the U.S. president's relentless criticism of Federal Reserve Chair Jerome Powell for not cutting rates. "The USD remains vulnerable to the downside if concerns about U.S. policymaking further undermine investor confidence in USD assets," Commonwealth Bank of Australia analysts wrote in a client note. The U.S. currency's drop earlier this week on speculation Trump was aiming to oust Powell "was a case in point," the analysts said. The dollar tumbled on Wednesday on a Bloomberg report that Trump was planning to fire Powell soon, before paring losses when Trump denied the news. Trump has said repeatedly that interest rates should be at 1% or lower, compared with the current 4.25%-4.5% range. The dollar gained 0.12% to 148.78 yen , inching closer to the 3-1/2-month high of 149.19 from Wednesday, as signs grew that Japan's coalition would fall short of retaining its majority. That would potentially give more sway to opposition parties that back consumption tax cuts to ease the burden on voters from rising prices. For the week, the dollar has gained 0.94% on the Japanese currency. "Our baseline scenario is one in which the ruling coalition fails to secure a majority," Yusuke Matsuo, senior market economist at Mizuho Securities, wrote in a note. "In this case, we think domestic markets would move into 'risk-off' mode, sending stocks, the yen, and short- and medium-term interest rates all lower." Japan, which initially was touted by the White House as likely to be among the first to reach a trade deal, has been deadlocked with Washington over politically sensitive issues of car and agriculture tariffs. Japan's top trade negotiator, Ryosei Akazawa, held talks with U.S. Commerce Secretary Howard Lutnick on Thursday, as Tokyo races to avert a damaging 25% levy that would become effective after an August 1 deadline. The euro rose 0.16% to $1.1617, clawing its way off Thursday's three-week low of $1.1556. For the week, the euro is down 0.65%. Sterling was flat at $1.3418, keeping it on course for a 0.53% weekly decline. Bitcoin edged up 0.82% to around $120,460 on the day. https://www.reuters.com/world/africa/dollar-set-weekly-gain-firm-us-data-tempers-fed-easing-bets-2025-07-18/
