2025-07-16 06:56

Israel launches heavy airstrikes in Damascus US producer prices unchanged in June July 16 (Reuters) - Gold prices jumped on Wednesday following news reports that U.S. President Donald Trump planned to fire Federal Reserve Chair Jerome Powell, but trimmed gains after Trump denied the claim. Trump said he was not planning to fire Powell, but declined to rule anything out, citing an investigation into cost overruns on a $2.5-billion Fed renovation project. Sign up here. Spot gold rose 1% to $3,354.01 per ounce, as of 0153 p.m. EDT (1753 GMT) after rising as much as 1.6% earlier. U.S. gold futures settled 0.7% higher at $3,359.1. "Headlines suggesting Trump was considering firing Powell drove gold prices higher... he later clarified it's highly unlikely. Gold markets were whipsawed by the back and forth," said Daniel Ghali, commodity strategist at TD Securities. Israel launched powerful airstrikes in Damascus, damaging the Defence Ministry and striking near the presidential palace. The attack added to geopolitical worries and supported purchases of safe-haven gold. On the trade front, the European Commission prepared to target $84.1 billion worth of U.S. goods for possible tariffs if trade talks with Washington fail after Trump threatened last week to impose 30% tariffs on imports from the EU. "With Israeli strikes and the U.S. being more hawkish on trade tariffs, there is a little bit more uncertainty to the marketplace," which is helping gold, said Jim Wyckoff, a senior analyst at Kitco Metals. "I expect gold to trade between $3,250 and $3,476 in the near term." Adding support to gold was data that showed U.S. producer prices were unexpectedly unchanged in June from a 0.3% rise in May. It followed Tuesday's data that showed overall consumer prices rose 0.3% in June, up from 0.1% in May, signalling the Federal Reserve may continue to exercise caution before cutting interest rates. Gold thrives during uncertain times, and a low-interest rate environment boosts it further. Spot silver added 0.5% to $37.89 per ounce. Platinum gained nearly 3% to $1,412.55 and palladium rose 1.8% to $1,227.73. https://www.reuters.com/world/china/gold-ekes-out-gain-focus-turns-us-tariff-negotiations-2025-07-16/

2025-07-16 06:51

NEW DELHI, July 16 (Reuters) - India's state-run GAIL (GAIL.NS) , opens new tab is in initial talks to buy liquefied natural gas from the proposed Alaska LNG project as the South Asian nation expands its import capacity, three industry sources with knowledge of the matter said. The talks with developer Glenfarne come as India works to raise its energy imports from the United States to narrow its trade surplus as part of a broader trade agreement with Washington to avoid the imposition of hefty U.S. tariffs. Sign up here. GAIL's discussions are preliminary as the landed cost of LNG will be a crucial deciding factor for the deal, the sources said. Glenfarne said last month that 50 firms had formally expressed interest in contracts with Alaska LNG. The project, championed by U.S. President Donald Trump, has been stuck on the drawing board for more than a decade. GAIL did not respond to Reuters email seeking comment on the talks. "Glenfarne does not comment on or confirm individual commercial negotiations, but Alaska LNG’s growing commercial momentum reflects the project’s competitive economic and geostrategic advantages," it said in an emailed statement to Reuters. India, the world's fourth-largest LNG importer, aims to increase the share of gas in its energy mix to 15% by 2030, up from about 6% currently, to reduce its carbon footprint. GAIL plans to increase the capacity of its 5 million metric tons per year Dabhol LNG terminal to 6.3 million tons per year by mid-2027 and to 12.5 million tons per year by 2031-32. Earlier this year GAIL invited initial bids from companies as it seeks to buy equity in an existing LNG project or a new project that would be commissioned by 2030 at the latest. The $44-billion Alaska LNG project could export up to 20 million metric tons per year of the superchilled gas. Alaska Governor Mike Dunleavy said in March the project could start exporting LNG by 2030. Glenfarne expects to make a final investment decision in the fourth quarter of this year on the first phase of the project - a 765-mile (1231-km) pipeline to deliver gas from the state's far north to its Anchorage region. Thailand's state-owned oil and gas giant PTT (PTT.BK) , opens new tab last month signed a 20-year agreement to buy 2 million tons per year of LNG from the Alaska LNG project. Others, including South Korea and Japan's top power producer JERA, are awaiting clarity on the financing and cost of the project. GAIL has contracts to buy 15.5 million tons annually of LNG including 5.8 million tons from the United States. https://www.reuters.com/business/energy/indias-gail-initial-talks-long-term-lng-deal-with-alaska-lng-sources-say-2025-07-16/

2025-07-16 06:27

LONDON, July 16 (Reuters) - Chilean miner Antofagasta (ANTO.L) , opens new tab said on Wednesday its copper production rose 11% to 314,900 metric tons in the first half of 2025, on higher production from its two concentrators. The London-listed company left guidance for full-year copper output unchanged between 660,000 and 700,000 tons. In 2024, it produced 664,000 tons of copper. Sign up here. It said net cash costs stood at $1.32 per pound in the first half of the year, 32% lower than the same period of 2024, mostly on higher production. The company left capital expenditure guidance for the year unchanged at $3.9 billion in 2025, up from $2.7 billion in 2024, as works on its Centinela concentrator peak. Antofagasta operates four copper mines in Chile, and seeks to develop the Twin Metals copper and nickel mine in Minnesota, which was stalled after President Joe Biden's administration blocked permits over environmental concerns. CEO Ivan Arriagada on July 10 said he saw "an opportunity" to advance Twin Metals, following President Donald Trump's move to impose a 50% import tariff on copper, reviving hopes for greater support of domestic mining projects. Copper, a metal with high electrical and thermal conductivity, is essential in the power and construction sectors. Demand for it is expected to increase over time, driven by the expansion of the electric vehicle market and emerging applications, including AI-powered data centres. Chile is the world's biggest copper producer. https://www.reuters.com/markets/commodities/antofagastas-copper-output-up-11-first-half-2025-07-16/

2025-07-16 06:26

Trade deal sets US tariffs at 19% vs feared 32% Indonesia agrees to buy more US planes, energy, farm products Jakarta stock market rises but traders await more details Bank Indonesia says deal will have positive impact on GDP JAKARTA, July 16 (Reuters) - Indonesia's president said U.S. counterpart Donald Trump was a "tough negotiator" after the two countries reached a trade deal that led to a reduction of proposed tariff rates to 19% from 32%. The deal is among only a handful reached so far by the Trump administration ahead of an August 1 deadline for negotiations, but no details were immediately provided by Indonesia, Southeast Asia's largest economy and a member of the G20. Sign up here. Trump said Indonesia had committed to purchasing 50 Boeing (BA.N) , opens new tab jets, $15 billion in U.S. energy supplies, and $4.5 billion in U.S. agricultural products. "We've agreed from 32%, if I'm not mistaken, lowered to 19% ... I was still negotiating, but, I must say, he's a pretty tough negotiator," Indonesia President Prabowo Subianto told journalists on Wednesday after a phone call with Trump. Prabowo, who was returning from overseas visits, including Brazil for the BRICS conference, said he had spoken to Trump. He added, while he understood the United States' points of view in the talks: "We've given our offer, we cannot give more." Trump's comments outlined an Indonesia deal similar to a preliminary pact struck recently with Vietnam, with no levies on U.S. exports to Indonesia. It also included a penalty rate for so-called transshipments of goods from China via Indonesia. Indonesia - the world's fourth-largest country by population - ran a goods trade surplus of $17.9 billion with the United States in 2024, according to the U.S. Trade Representative. "This is an extraordinary struggle by our negotiating team led by the Coordinating Minister for Economic Affairs," Hasan Nasbi, the Indonesian president's spokesperson, told reporters earlier. Nasbi said Indonesia's tariff rate was much lower than other countries in Southeast Asia. The Jakarta stock index (.JKSE) , opens new tab rose as much as 0.8% on Wednesday after the deal, which Indonesia's central bank said would provide a positive catalyst for economic activities. The JKSE is up 10% since early April. The country's central bank cut rates on Wednesday, saying the deal will have a positive impact on the archipelago's exports and economic growth, and provide certainty to financial markets. A report by Capital Economics said that the rate cut might have come anyway, but the trade deal helped by removing a key source of uncertainty. "While details are still sparse, it appears to be similar to that agreed with Vietnam, with clamping down on re-routing from China, once again, a key target," the report said. Natixis warned the Indonesian economy would still be affected by Trump's tariffs on China - Indonesia's biggest trade partner. "Well, 19% is better than 32%," Matt Simpson, a senior market analyst at City Index in Brisbane, said. "Indonesian non-oil exports such as footwear and textiles will take a hit, but energy and agriculture are set to gain. Officials are of course pleased because they're in Trump's good books," he added. Myrdal Gunarto, an economist with Maybank Indonesia, described the deal as relatively good, as Jakarta is getting a tariff below those imposed on other Southeast Asian neighbours. "(It) opens more space for domestic lower monetary policy rate," he said, predicting it would also trigger capital inflows. https://www.reuters.com/world/asia-pacific/indonesia-says-us-trade-deal-reached-after-extraordinary-struggle-2025-07-16/

2025-07-16 06:19

LITTLETON, Colorado, July 16 (Reuters) - Surging clean power supplies have allowed China's utilities to reduce their emissions from electricity production to record lows during the opening half of 2025. Carbon dioxide emissions per kilowatt hour (kWh) of electricity averaged 492 grams during the opening half of 2025, according to data from energy portal electricitymaps.com. Sign up here. That was the first ever reading below 500 grams per kWh, and is down from 514g/kWh during the same period in 2024 and 539g/kWh from January to June 2023. CLEANING UP A nearly 23% rise in clean power generation from January to June 2024 was the main driver behind the reduction in emissions intensity, as higher volumes of clean energy allowed power firms to reduce output from coal and gas power plants. Total power generation from thermal power plants - mainly coal - dropped by 4% from a year ago to just under 7,000 terawatt hours (TWh), data from LSEG shows. Output from clean energy sources from January to June totalled 2,400 TWh, highlighting that fossil fuel power sources still account for a 75% share of China's power generation mix. But the growth of clean energy supplies continues to sharply outpace growth in fossil fuel power generation, suggesting that China's power mix looks set to keep getting cleaner. Total Chinese clean power output during the first half of 2025 was 200% more than during the first half of 2019, according to LSEG. In contrast, total Chinese thermal power output from January to June 2025 was 20% greater than during the same period in 2019. EMISSIONS TOLL China's power sector emissions from fossil fuel generation have declined in line with the cleaner mix. Total emissions from fossil fuels used in electricity production from January to May were 2.24 billion metric tons of CO2, according to data from energy think tank Ember. That total is 60.5 million tons less than during the same months of 2024, and is an indication that some progress is being made against Beijing's goals of reducing energy sector pollution. However, the enduring economic drag caused by a lingering property downturn as well as the uncertainty surrounding tariffs charged by the United States on Chinese goods is also impacting China's power needs and emissions totals. The pace of construction in China has slowed sharply so far this decade following a debt crisis among property developers, which in turn has choked off demand for energy-intensive goods such as cement, piping, glass and construction steel. More recently, the fresh tariffs on Chinese goods set by U.S. President Donald Trump this year have hit demand for China-made products, and slowed production lines across several manufactured items. Slower activity on construction sites and factory production lines has in turn reduced the overall power needs of both those industries, and allowed power generation firms to cut back on production as a result. If a recovery unfolds in the construction and manufacturing sectors going forward, China's overall power needs will increase in tow, and will likely spur a rebound in generation from pollution-emitting fossil fuels. But if China's economy remains chilled by construction debt and tariff worries, the country's use of fossil fuels will remain subdued, which could set the stage for further reductions in power sector emissions. 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/china-cuts-electricity-emissions-record-lows-2025-2025-07-16/

2025-07-16 06:14

Wall Street pulls itself up from the red Europe closes lower Trump says not likely to fire Powell but doesn't rule it out US producer price data unexpectedly unchanged Oil prices pare losses, gold advances but off session highs NEW YORK/PARIS, July 16 (Reuters) - Equity indexes advanced slightly on Wednesday while the dollar fell with U.S. bond yields, as markets calmed after U.S. President Donald Trump said he was "highly unlikely" to fire Federal Reserve Chair Jerome Powell. Markets had turned volatile in late morning trading with stocks losing ground, the dollar selling off sharply, and gold prices spiking on fears Trump was seeking to remove the central bank chief. But investors reversed course after Trump contradicted a Bloomberg report that he was planning to oust Powell. Sign up here. However, the president said he had spoken with some Republican lawmakers about the idea and unleashed fresh criticism against Powell while declining to completely reject the possibility of switching out the Fed chair, whose term is up in May 2026. Powell has faced frequent public criticism from Trump as the central bank has kept interest rates steady while it monitors the inflationary impact from tariffs. The president has railed against Powell for not cutting rates sooner, prompting concern about whether the Fed's independence could be eroded. While the market would respond negatively to Powell's ouster, Gene Goldman, chief investment officer at Cetera Investment Management, noted it would take some time to remove the policymaker, who has just one vote out of 12 on monetary policy changes. But he sees plenty more investor worries. “The markets remain very jittery. We have high valuations, and it's the beginning of earnings season with OK but not great bank earnings," said Goldman. He also pointed to a bearish outlook from Dutch company ASML "ASML's cautious outlook is not a great indicator for the semiconductor industry. And inflation reports have not equivocally given any suggestion that the Fed should cut rates any time soon.” Earlier on Wednesday, data showed U.S. producer were unexpectedly unchanged in June as an increase in the cost of goods due to tariffs on imports was offset by weakness in services. The unchanged reading in the producer price index for final demand last month followed an upwardly revised 0.3% rise in May. This was after Tuesday's U.S. consumer price data for June pointed to higher costs for some goods. "It’s very early innings when determining whether or not and to what extent tariffs are going to impact inflation,” said Don Calcagni, chief investment officer at Mercer Advisors. , opens new tab While investors wait to see where the Trump administration ultimately sets tariff levels, Calcagni noted that inflation numbers are also being muddied by the depletion of goods in stock at companies that had built up higher-than-usual inventories in anticipation of the new import taxes. On Wall Street, the Dow Jones Industrial Average (.DJI) , opens new tab finished up 231.49 points, or 0.53%, at 44,254.78 while the S&P 500 (.SPX) , opens new tab rose 19.94 points, or 0.32%, to 6,263.70 and the Nasdaq Composite (.IXIC) , opens new tab rose 52.69 points, or 0.26%, to 20,730.49. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab rose 0.86 points, or 0.09%, to 921.11. Earlier, the pan-European STOXX 600 (.STOXX) , opens new tab index had closed down 0.57% with the chip sector dragging European equities lower. In currencies, the U.S. dollar was lower but above its lows of the day after the immediate worries about Powell subsided. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, fell 0.3% to 98.29. The euro was up 0.34% at $1.1639 while against the Japanese yen , the dollar weakened 0.71% to 147.81. "What can kill the value of the U.S. dollar, what can absolutely destroy faith in the U.S. dollar, is attacking in any way, shape, or form the independence and authority of the Federal Reserve," said Juan Perez, senior director of trading at Monex USA in Washington. Sterling strengthened 0.28% to $1.3416. Earlier data showed that Britain's annual rate of consumer price inflation unexpectedly rose to its highest in over a year. In Treasuries, the yield on benchmark U.S. 10-year notes fell 3.6 basis points to 4.453%, from 4.489% late on Tuesday while the 30-year bond yield fell 1 basis point to 5.0083%. The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, fell 6.7 basis points to 3.892%, from 3.959% late on Tuesday. "This story keeps churning so understandably markets are nervous," said Kenneth Broux, head of corporate research and rates, at Societe Generale in London referring to worries about Powell's position. "Bond and FX markets do not like the uncertainty. We've had stronger U.S. CPI goods ex-autos just yesterday, so to think that lower rates are the way forward as tariffs seep through consumer prices is not going to reassure." Oil prices edged lower on Wednesday as builds and concerns about wider economic impact from outweighed some signs of increasing demand. U.S. crude settled down 0.21% at $66.38 a barrel while Brent futures fell to $68.52 per barrel, down 0.28%. Gold prices trimmed gains on Wednesday after Trump denied he was planning to fire Powell. Spot gold rose 0.78% to $3,348.20 an ounce after earlier rising as much as 1.6%. https://www.reuters.com/world/china/global-markets-wrapup-1-2025-07-16/