2025-07-04 05:31
East China forecast to swelter in 37-40C heat over the next week The 'Sanfu Season' heatwave is unusually early this year China is not on track for a record-breaking summer, analyst says SHANGHAI/BEIJING, July 4 (Reuters) - Sweltering heat enveloped China's eastern seaboard on Friday, as a high-pressure system settled over the country's most populous region, baking key agricultural and manufacturing hubs along the Yangtze River and raising fears of droughts and economic losses. Large swathes of China's economic heartland are set to roast in temperatures of 37-39 degrees Celsius (99-102 degrees Fahrenheit) over the coming week. Forecasters are warning that parts of Anhui and Zhejiang provinces, as well as the more central provinces of Hubei and Henan, could top 40 C. Sign up here. The subtropical high causing the heat has arrived unusually early this year. China's "Sanfu Season" - an agricultural marker thought to have been in use for more than two millennia - typically begins in mid-July and lasts through late August, sending people sheltering from intense summer heat. "It's getting hot earlier and earlier now," said Tao Sijia, a 30-year-old Shanghai resident. "I prefer the cooler weather in my childhood. The summers in my memory were cool. Now, it's pretty hot." Extreme heat, which meteorologists link to climate change, has emerged as a major challenge for Chinese policymakers. As well as scorching croplands and eroding farm incomes, higher temperatures can affect manufacturing hubs and disrupt operations in key port cities, and strain already overburdened healthcare systems. The recent heatwave is already taxing China's power grid, with the nationwide maximum power load surging to a record 1.47 billion kilowatts on Friday, up nearly 150 million from a year earlier, state broadcaster CCTV reported. In eastern China, the power load reached 422 million kilowatts, with air conditioning accounting for about 37% of the demand. "Heatwaves in China bring drought risks, and this could be a concern in southwestern China this year," said Chim Lee, a senior analyst at the Economist Intelligence Unit specialising in energy and climate change. "Sichuan is already experiencing lower-than-average rainfall, and this will have ramifications for the region's hydropower output, which in turn will affect its power exports to eastern China." However, China does not appear to be heading for a record-breaking summer, Lee said, noting that recent high temperatures in northern China and the number of hot days so far remain lower than during the same period in 2023. Still, authorities across eastern and central China issued warnings about the dangers, urging workers to take precautions as the combination of extreme heat and humidity during commutes created a heightened risk of heat stroke. "I feel very hot after walking out of the office," said Iris Chen, a 21-year-old student. "It's just the beginning of July, so it's probably not the highest temperature yet." WORLD'S LARGEST LEGOLAND The searing heat shows little sign of curbing enthusiasm for Shanghai's newest attraction - the world's largest Legoland, which is set to open in the city on Saturday. Online searches for the theme park increased five-fold in June compared with May, while hotel bookings in the surrounding area increased by an annual 250%, data from Qunar, China's second-largest travel agency, showed. In 2022, China was hit by the worst heatwaves since 1961, with many parts of the country enduring a 79-day hot spell from mid-June to late August. No official death toll was disclosed and China does not give a tally of heat-related deaths, although domestic media occasionally report fatalities citing local authorities. In a 2023 report published in the medical journal The Lancet, heatwave-related mortality in the world's second-largest economy was estimated at 50,900 deaths in 2022, doubling from 2021. China is not alone in having to contend with the potentially catastrophic consequences of extreme heat. Earlier this week, Greek firefighters battled wildfires on the island of Crete and near Athens, as an early summer heatwave linked to the deaths of at least eight people sweeps across Europe. California has also seen conflagrations erupt well outside the traditional wildfire season in recent years, displacing tens of thousands of people. Compounding the challenge facing Chinese officials, while the east bakes, other parts of the country are struggling with torrential rain, conditions that analysts also attribute to climate change. The national meteorological centre forecast more torrential rain across parts of north- and southwest China on Friday and Saturday, with videos circulating on Chinese social media showing residents canoeing through flooded streets in the city of Chengdu. https://www.reuters.com/sustainability/climate-energy/eastern-china-swelters-under-early-heatwave-threatening-crops-industry-2025-07-04/
2025-07-04 05:31
MUMBAI, July 4 (Reuters) - The Indian rupee and dollar-rupee forward premiums retreated from one-month peaks on Friday after a stronger than expected U.S. jobs report dented wagers on Federal Reserve rate cuts, with traders also keeping an eye on a looming U.S. tariff deadline. The rupee dipped to near 85.50 in early trading, coming off a one-month peak hit on Thursday, before paring losses to quote little changed at 85.33. Sign up here. A dip in the dollar index, following a rise in the previous session, aided the rupee while Asian currencies were mostly rangebound. Meanwhile, the 1-year dollar-rupee implied yield fell 5 basis points to 2.02%, with traders pointing out that near forward premiums could also witness downward pressure after the central bank did not raise the quantum of liquidity it aims to withdraw from the banking system. This surprised many market participants, who had expected a rise in the quantum due to a heightened surplus. The U.S. jobs data prompted traders to nearly wipe out wagers on a Fed rate cut in July, while the odds of a September cut dipped to below 75% from near 94% before the data. "The market is now waiting for news on tariffs," a trader at a Mumbai-based bank said, referring to the looming July 9 deadline for countries to strike trade deals with the U.S. About a 100 countries are likely to see a reciprocal tariff rate of 10%, U.S. Treasury Secretary Scott Bessent told Bloomberg Television, predicting a "flurry" of trade deals announced before the deadline. Taking cues from deals struck with other countries, there is scope for a reduction in the umbrella tariff rate on India to the baseline 10%, DBS said in a note. U.S. President Donald Trump had threatened a 26% duty on Indian goods as part of his April 2 "Liberation Day" reciprocal tariffs, which were temporarily lowered to 10% to buy time for negotiations. https://www.reuters.com/world/india/trimmed-fed-rate-cut-wagers-pull-rupee-forward-premiums-off-one-month-peak-2025-07-04/
2025-07-04 05:09
SYDNEY, July 4 (Reuters) - Australia said on Friday it would invest A$432 million ($283.82 million) in a green hydrogen project led by Orica (ORI.AX) , opens new tab, the world’s largest explosives maker, backing the emerging industry amid a wave of delays and cancelled projects across the country. The funding will support the Hunter Valley Hydrogen Hub, which aims to decarbonise Orica’s nearby ammonia and explosives manufacturing operations and eventually supply the green fuel and green ammonia for export. Sign up here. Climate Change and Energy Minister Chris Bowen said the funding for the project on the east coast helped secure Australia’s energy future, with the government seeing green hydrogen as key to its net-zero goals. “By switching from gas to green hydrogen, the project will also significantly cut emissions from Orica’s ammonia production facility and help produce green ammonia for domestic use across mining, agriculture and manufacturing sectors,” Bowen said in a statement. It is a boost for Australia’s struggling green hydrogen industry after a series of delays and exits cast doubt on its viability. On Sunday, plans to build a A$12.5 billion CQ-H2 plant in the state of Queensland collapsed after its lead developer, state-government owned energy company Stanwell, ended its involvement. It was one of the country’s largest and most advanced projects. Orica’s Hunter Valley Hydrogen Hub, once a joint venture with Origin Energy (ORG.AX) , opens new tab, faced a major setback last year when the power producer exited, citing cost concerns and headwinds in the green hydrogen market. Orica said the government support was “essential” to bridging the project’s “commercial gap”. The explosives maker added that it had received strong interest from potential project partners in the past few months and would work towards a final investment decision “in due course”. “We hope to further contribute to our domestic and international customers' decarbonisation goals by offering low-carbon products, while supporting Orica’s next phase of decarbonisation,” CEO Sanjeev Gandhi said. The first phase of the hub is expected to produce up to 12 tonnes of green hydrogen per day using a 50 megawatt electrolyser powered by renewable energy. ($1 = 1.5221 Australian dollars) https://www.reuters.com/business/energy/australia-pledges-283-million-orica-green-hydrogen-project-industry-wavers-2025-07-04/
2025-07-04 05:00
July 4 (Reuters) - There will be no foreign exchange report during U.S. hours on Friday July 4 as markets are closed for a public holiday. Reuters will resume the report in Asian trading hours on Monday July 7. Sign up here. https://www.reuters.com/world/middle-east/dollar-holds-firm-against-euro-yen-us-trade-pressure-mounts-2025-07-04/
2025-07-04 04:55
South Korea trade minister flying to Washington on Friday for talks South Korea trade negotiations hampered by political uncertainty and martial law crisis U.S. demands better access to agriculture, car sectors, and digital market SEOUL, July 4 (Reuters) - South Korea's Trade Minister Yeo Han-koo said on Friday that he might request an extension of the freeze on U.S. tariffs that is set to expire within days when he heads to Washington for talks with U.S. officials. Yeo, who became South Korea's new trade envoy last month, is due to fly to the U.S. on Friday and plans to hold talks with U.S. Trade Representative Jamieson Greer and other senior officials on Saturday, just ahead of the July 9 deadline when U.S. tariffs could rise sharply. Sign up here. U.S. President Donald Trump said his administration would start sending letters on Friday to countries specifying what tariff rates they will face on imports into the United States. Yeo said the substance of negotiations mattered more than the deadline, noting he would ask the U.S. to take time and accelerate talks to reach a "win-win" deal. South Korea has sought exemptions from Trump's punishing tariffs on imports of automobiles and steel products, as well as a 25% "reciprocal" levy on the Asian ally currently paused for negotiations. The government of Asia's fourth-largest economy, which is currently subject to a blanket 10% tariff, agreed with the U.S. in their opening round of trade talks in late April to craft a trade deal reducing tariffs by the July deadline. However, negotiations appear to have made little progress and were hampered by political uncertainty over the last few months following South Korea's martial law crisis with President Lee Jae Myung elected as the new leader on June 3. President Lee said on Thursday that the ongoing talks between Seoul and its ally Washington had "not been easy", adding the two sides were not clear on what they want. Washington is demanding better access to the agriculture and car sectors, and improved market access and non-discriminatory treatment in the digital sector, Minister Yeo told a parliamentary hearing on Friday. "The government will respond flexibly by taking into account the level of the U.S. demands and domestic political security sensitivities," Yeo said. Yeo also said that the United States was asking for larger investments by South Korean companies in the country and increased South Korean purchases of U.S. energy supplies. Although South Korea has shown interest in a $44 billion LNG project in Alaska, Yeo said the feasibility of the project was still not clear and the U.S. would only provide more information later in the year. At the hearing with Yeo, lawmakers from the ruling and opposition parties called for the government to make a careful assessment on whether to invest in the Alaska project or not. "Once (we're) in the wrong place, it is hard to get out," said Lee Chul-gyu, a lawmaker from the opposition People Power Party. South Korea's efforts to reach a trade deal come as Trump said Vietnam and the United States had agreed on a 20% tariff rate on imports from Vietnam, down from an initial 46% rate he threatened. Yeo said South Korean companies that use the Southeast Asian country as a manufacturing base would be affected by those tariffs. South Korean companies such as Samsung Electronics have poured billions of dollars into expanding their operations in Vietnam. https://www.reuters.com/world/asia-pacific/south-korea-trade-minister-leave-us-friday-tariff-deadline-looms-2025-07-04/
2025-07-04 04:41
SYDNEY, July 4 (Reuters) - Australia will likely still be subjected to the 10% tariff rate on all exports to U.S. but the government will continue to try and negotiate for an exemption, Australian Prime Minister Anthony Albanese said on Friday. A 90-day pause in the U.S. "reciprocal" tariffs are set to expire early next week, with President Donald Trump threatening to send letters to countries laying out the tariff rates they will face on U.S. imports. Sign up here. When asked if Australia will stay on the 10% baseline tariff rate after July 9 during an event in Sydney, Albanese said, "I assume that will be the case." The U.S. tariff deadline of July 9 is not expected to affect Australia, he added. "We are in a position where on July 9 that won't really have an impact on us because that's about other countries who have higher rates," said Albanese. "No country has a better tariff level than 10%. Now we will continue to put our case as we do." Albanese's scheduled meeting with Trump on the sidelines of the G7 was cancelled last month when Trump left the summit early due to tensions between Israel and Iran. The government is still trying to get a meeting with Trump, and Albanese said on Friday there would be many opportunities to meet at various forums between now and the end of the year. https://www.reuters.com/world/asia-pacific/australias-pm-says-he-expects-10-us-baseline-tariff-stay-2025-07-04/
