2025-07-17 19:43
Burgundy suspends Point Lake mine due to low diamond prices Misery underground site operations remain unaffected NWT community seeks projects to offset future job losses from mine closures TORONTO, July 17 (Reuters) - Australian miner Burgundy Diamond Mines laid off several hundred employees and contractors and suspended operations at its Point Lake diamond mine in Canada due to record-low diamond prices, a company spokesperson said on Thursday. The Point Lake site in Canada's Northwest Territories is part of the company's Ekati mine. Burgundy said its other site in the remote Arctic region is still operating. Sign up here. "Burgundy Diamond Mines made the decision to temporarily suspend open pit mining at Point Lake, which constitutes a shift from surface mining operations in the short term," said Ariella Calin, corporate communications manager at Burgundy Diamonds. With global diamond prices at record lows, the Point Lake project is proving to be sub-economic. Mining operations at the Misery underground mine, Calin said, are unaffected. Northwest Territories is home to three diamond mines: Diavik, owned by Rio Tinto, De Beers' ; and Burgundy's Ekati. As falling diamond sales globally have reduced profitability, companies are trying to stay afloat or are suspending their operations. Rio Tinto has planned a closure of its Diavik mine in early 2026. De Beers owner Anglo American is looking to spin off its entire diamond business. Burgundy halted trading at the Australian Stock Exchange (ASX) pending an operational update from the company. Production rates at Misery have significantly improved in recent months, and Burgundy will provide a quarterly production update toward the end of July, Calin said. As Canada's diamond mines reach the end of their productive life, the NWT community has been pitching for projects and asking for infrastructure improvements to replace future job losses. "The Northern mining industry has been around for over 90 years," said Karen D. Costello, executive director at NWT & Nunavut Chamber of Mines. "And it has been recognized that we do have incredible mineral potential, but we do need robust exploration to make the discoveries, and we do need the known projects to advance to become the next generation of minds." https://www.reuters.com/markets/commodities/burgundy-diamonds-lays-off-employees-canada-diamond-prices-tank-2025-07-17/
2025-07-17 19:37
July 17 (Reuters) - A Russian crew member of a Greek cargo ship sunk by Houthi militants is undergoing treatment in Yemen, Russia's state RIA news agency said on Thursday, quoting a source. RIA identified the Russian mariner as Aleksei Galaktionov, one of several crew members picked up by the Yemeni navy after the ship was sunk. It quoted a highly placed source as saying the man, who had suffered wounds in the attack, was now in a markedly improved condition. Sign up here. Maritime security sources had earlier reported that 10 mariners -- eight crew members and two security guards - had been rescued and taken to Saudi Arabia. The sources said all the crew were Filipino, except for one Russian. The sources said the Iran-aligned Houthis had sunk the Liberia-flagged Eternity C, with 22 crew and three armed guards on board, after attacking the vessel with sea drones and rocket-propelled grenades over two consecutive days. The remaining 15 people who were on board were considered missing and a privately run search to find them has been called off. The Houthis have attacked more than 100 ships since November 2023 in what they say is an act of solidarity with the Palestinians over the Gaza war. https://www.reuters.com/world/middle-east/russian-crew-member-ship-sunk-by-houthi-militants-undergoing-treatment-yemen-2025-07-17/
2025-07-17 19:16
WASHINGTON, July 17 (Reuters) - The Trump administration's plan to amass a database of U.S. food aid recipients for the purpose of checking immigration status and avoiding duplicate enrollment amounts to an unlawful privacy violation, lawmakers said in a letter on Thursday to Agriculture Secretary Brooke Rollins. The U.S. Department of Agriculture said in June that it would gather information from states to build the database with the goal of reducing waste and strengthening the program, as well as in keeping with President Donald Trump's directives to promote data-sharing across the federal government. Sign up here. The data would include the social security numbers, immigration status and other information of people who have received, are receiving or have applied to receive benefits from the Supplemental Nutrition Assistance Program, according to agency documents. California Senator Adam Schiff and 12 other Democratic senators said in the letter that the database would violate benefit recipients' right to privacy and that the USDA should cease compiling the data. "The new FNS policy would violate federal law and undoubtedly lead to a loss of trust," the letter said. The USDA did not immediately respond to a request for comment. The AP reported on Thursday that Immigration and Customs Enforcement officials will be given access to the personal data of Medicaid enrollees, an escalation in the administration's hardline immigration policy. About 42 million people receive SNAP benefits. Immigrants in the United States illegally are not eligible for Medicaid or SNAP. Rollins said in a July 9 letter to state SNAP agencies that the USDA would require collection of SNAP data from states or EBT processors beginning on July 24 with submission to USDA no later than July 30. https://www.reuters.com/legal/government/trump-effort-build-food-aid-recipient-database-unlawful-lawmakers-say-2025-07-17/
2025-07-17 19:16
MSCI index rises with Wall street European shares close higher after four-day drop TSM, GE updates boost sentiment U.S. retail sales rise, weekly jobless claims fall NEW YORK/LONDON, July 17 (Reuters) - Equities advanced on Thursday with the S&P 500 and the Nasdaq registering record closing highs and the dollar rose as investors were encouraged by the latest crop of economic data and earnings reports while oil futures rose on supply risks in the Middle East. Data on jobless claims showed that the number of Americans filing new applications for unemployment benefits fell last week, pointing to steady job growth so far in July, though some laid off workers are experiencing long spells of unemployment because of a moderation in hiring. Sign up here. U.S. retail sales rebounded more than expected in June, but some of the increase likely reflected higher prices for some goods exposed to tariffs. "In economic data two key releases came out today: retail sales and jobless claims. Both were better than anticipated," said Mike Cornacchioli, investment strategy director and senior vice president at Citizens Private Wealth. "Those two illustrate the strength of the consumer and the labor market. So, a lot of the fears that were placed on the state of the U.S. economy are overblown and have failed to come to fruition at this point in time. Maybe they will some time down the line, but this data and the data that's come in lately has just reinforced the strength of the U.S. economy." Cornacchioli also pointed to strong earnings reports as a boost for equities on Thursday. Taiwan Semiconductor Manufacturing , the world's main maker of advanced AI chips, posted record profits ahead of expectations. It warned that future income might be hit by U.S. tariffs, though perhaps not until the fourth quarter. Also, GE Aerospace lifted its profit outlook with jet engine deliveries rising as efforts to fix supply constraints showed results. "Money continues to flow into equities on expectations for a strong earnings season," said Michael James, equity sales trader at Rosenblatt Securities, Los Angeles. "Overall the market continues to climb a wall of worry regardless of elevated valuations as people are looking forward beyond this current quarter or the next month to value stocks on 2026 multiples." After four straight days of losses, Europe's STOXX 600 (.STOXX) , opens new tab index ended up 0.96%, with a boost from strong earnings reports including record orders at Swiss engineering firm ABB (ABBN.S) , opens new tab. Wall Street was boosted by stocks including PepsiCoPEP.O , opens new tab which rallied 7.5% after reporting better-than-expected quarterly results on steady demand in the U.S. and major markets, including Europe. In another positive sign for the consumer, United AirlinesUAL.O , opens new tab shares rose after executives said the company has seen strong bookings in the past three weeks. The S&P 500 (.SPX) , opens new tab rose 33.66 points, or 0.54%, to 6,297.36 for a record closing high while the Nasdaq Composite (.IXIC) , opens new tab rose 153.78 points, or 0.74%, to 20,884.27, also a closing record. The Dow Jones Industrial Average (.DJI) , opens new tab rose 229.71 points, or 0.52%, to 44,484.49, still below its record closing level. With the Russell 2000 small cap index (.RUT) , opens new tab rising 1.2% on the day, Rosenblatt's James noted "a healthy rotation into the small cap stocks to provide a little broader participation with the market strength today." MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab rose 5.18 points, or 0.56%, to 926.2, putting it within striking distance of its record levels. Thursday's market gains follow a dramatic wobble during the prior session when Trump said he was highly unlikely to fire Federal Reserve chair Jerome Powell. However, he left the door open to the possibility of ousting him and renewed his criticism of the central bank chief for not cutting U.S. interest rates. In currencies, the dollar rose on Thursday after the economic data. While it pulled back from its highs of the day, the dollar index , which measures the greenback against a basket of currencies including the yen and the euro, was last up 0.32% at 98.66. The euro was down 0.34% at $1.1594. Against the Japanese yen , the dollar strengthened by 0.5% to 148.6 as polls showed Prime Minister Shigeru Ishiba's coalition was in danger of losing its majority in the upper house in upcoming elections in Japan. U.S. Treasury yields were higher in a relatively choppy session. Yields had briefly spiked higher and then fallen following the sales and jobless claims data, which showed the world's largest economy on a stable footing and supported the Fed's patient stance on monetary easing. The yield on benchmark U.S. 10-year notes rose 0.2 basis points to 4.457%, from 4.455% late on Wednesday while the 30-year bond yield was roughly flat at 5.0135% versus 5.015% in the prior session. The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, rose 2.4 basis points to 3.909%, from 3.885% late on Wednesday. Oil prices settled $1 higher after drones struck Iraqi Kurdistan oil fields for a fourth day, pointing to continued risk in the volatile region. U.S. crude settled up 1.75%, or $1.16 at $67.54 per barrel and Brent settled at $69.52 a barrel, up 1.46%, or $1.00. Gold prices were lower after the upbeat U.S. economic data aided the Fed’s cautious stance on rate cuts. Spot gold fell 0.22% to $3,338.89 an ounce. U.S. gold futures fell 0.35% to $3,340.80 an ounce. https://www.reuters.com/world/china/global-markets-wrapup-6-graphic-2025-07-17/
2025-07-17 18:50
Dollar firms against major peers Fed Chair Powell's future in focus Japan's political shift weighs on yen NEW YORK, July 17 (Reuters) - The dollar rebounded broadly on Thursday following a turbulent session on Wednesday when U.S. President Donald Trump denied reports that he was planning to fire Federal Reserve Chair Jerome Powell. The dollar has rallied this month in what analysts say is largely consolidation following a sharp selloff for most of this year. The dollar index remains down 9% year-to-date. Rising Treasury yields this month are supporting the dollar’s rebound. Sign up here. “After having a historic sell-off in the first half, the dollar has begun the second half on firmer footing. It looks like mostly short covering backed by these firmer U.S. interest rates,” said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York. The dollar extended gains on Thursday after data showed U.S. retail sales rebounded more than expected in June, while the number of Americans filing new applications for jobless benefits fell last week. However, the greenback quickly fell back to trade close to where it was before the data, which Chandler said shows “the lack of near-term conviction.” Investors are weighing multiple factors that could influence market direction, including the economic impact of Trump’s tariff policies, the U.S. fiscal and debt outlook, and the Fed’s independence. The dollar tumbled on Wednesday on reports 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. Former Fed Governor Kevin Warsh, seen as a potential successor to Powell, said on Thursday there needs to be a new accord between the Treasury Department and the U.S. central bank, referencing a 1951 pact that separated federal debt management from monetary policy. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, was last up 0.41% on the day at 98.75, with the euro down 0.45% at $1.1582. The single currency earlier reached $1.1555, the lowest level since June 23. In other currencies, sterling weakened after data showed British pay growth slowing in May and employee numbers dropping further last month. The British pound was last down 0.1% at $1.3405. Concerns also mounted over a pivotal election in Japan and a still elusive trade deal with the U.S. to avoid a punishing rise in tariffs. Polls showed Prime Minister Shigeru Ishiba's coalition was in danger of losing its majority in the upper house. Japan's top trade negotiator, Ryosei Akazawa, held talks with U.S. Commerce Secretary Howard Lutnick on tariffs on Thursday, as Tokyo races to avert a 25% levy that will be imposed unless a deal is clinched by an August 1 deadline. The yen weakened 0.58% against the greenback to 148.73 per dollar after touching its weakest level since April 3 in the previous session . The Australian dollar slid after jobs data badly missed forecasts and unemployment hit highs not seen since late 2021. The Aussie was last down 0.64% versus the greenback at $0.6484. In cryptocurrencies, bitcoin fell 0.22% to $119,676. https://www.reuters.com/world/middle-east/dollar-gains-broadly-yen-dips-before-election-japan-election-2025-07-17/
2025-07-17 18:27
Tariffs' impact on inflation less than expected, Daly says She says rates will need to fall as inflation drops to avoid harming labor market Markets expect no change in rates at Fed's July 29-30 meeting July 17 (Reuters) - San Francisco Federal Reserve President Mary Daly reiterated on Thursday it is "reasonable" to expect two interest rate cuts before the end of this year, particularly with the impact of President Donald Trump's tariffs looking more muted than originally expected. Inflation is still above the U.S. central bank's 2% target and there's still "some work to do" to bring it down, Daly said at the Rocky Mountain Economic Summit in Victor, Idaho. But the Fed also doesn't want to keep rates restrictive for too long because that would unnecessarily hurt the labor market, she said. Sign up here. "I don't think we need to slow precipitously to produce the last mile on inflation," Daly said. "I wouldn't want to see more weakness in the labor market ... I really wouldn't want to see that, which is why you can't wait forever" on cutting rates. Companies are figuring out ways to avoid tariffs and are not passing on all of their increased costs to their customers, and despite a doubling of the effective average tariff rate under Trump the increased levies on imports are not so far spilling more broadly into overall inflation. "We haven't seen any evidence that that's occurring," Daly said, though recent consumer price data does show the price of goods is rising. Offsetting that, however, is encouragingly lower inflation in non-housing-related services inflation, she said. Asked if she would support reducing the current policy rate range of 4.25%-4.50% when the Fed meets in two weeks, Daly noted that she expects rate cuts to resume as inflation falls, with the policy rate at an ultimate settling point of 3% or somewhere higher than that level. "Whether it happens in July or September or some other month is really not the most relevant piece," she said. More relevant, Daly added, is that rates will be reduced. "We don't want to unnecessarily tighten the economy in a way that hurts the labor market or growth. So that's the direction of travel," she said. Two of the Fed's 19 policymakers have said they believe a July rate cut could be appropriate; others have signaled they expect it to take longer to be able to judge the effect of the tariffs and other Trump policies on inflation and the labor market, and therefore to know if a rate cut would be appropriate. Financial markets reflect very little expectation for a rate cut at the Fed's July 29-30 meeting, with bets focused on the September 16-17 meeting as a much more likely time for the policy easing to resume. Trump has waged an escalating pressure campaign on Fed Chair Jerome Powell to cut rates immediately and raised the possibility of replacing him before his term as U.S. central bank chief expires next May. Powell has repeatedly said he intends to finish out his term as Fed chief. Daly declined to comment specifically about Trump's comments, but noted that all Fed policymakers participate in interest rate decisions. "We share equal responsibility when we take that vote" on rates, Daly said. https://www.reuters.com/business/feds-daly-says-reasonable-expect-two-rate-cuts-before-end-2025-2025-07-17/
