2025-07-03 20:19

TSX ends up 0.6% at 27,034.26 Eclipses Wednesday's record closing high Tech rises 1.6%, financials end 0.8% higher Cargojet jumps 8.5% as company extends Amazon contract July 3 (Reuters) - Canada's main stock index rose to a record closing high on Thursday, led by gains for financial and technology shares, as stronger-than-forecast U.S. employment data added to the high spirits of investors. The S&P/TSX composite index (.GSPTSE) , opens new tab ended up 164.60 points, or 0.6%, at 27,034.26, eclipsing the record close on Wednesday. Year-to-date the index has gained 9.3%. Sign up here. "This is a market that is being driven by exuberance," said Michael Sprung, president at Sprung Investment Management. "It seems to be looking for any excuse for good news and I'm not so certain that the good news is likely to continue." U. was unexpectedly solid in June, but nearly half of the increase in nonfarm payrolls came from the government sector, with private industry gains the smallest in eight months as businesses battled rising economic headwinds. Those headwinds have included uncertain U.S. trade policy. About 100 countries are likely to see a reciprocal tariff rate of 10%, U.S. Treasury Secretary Scott Bessent said, adding that he expects "a flurry" of trade deals announced before a July 9 deadline that could see tariff rates increase sharply. Canada's trade deficit narrowed in May after reaching a record-breaking level in April, as exports rose and imports fell even as the impact of U.S. tariffs dented shipments south of the border. Technology rose 1.6%, with e-commerce company Shopify Inc (SHOP.TO) , opens new tab adding 2.1%. Heavily weighted financials were up 0.8% and consumer staples climbed 1.1%. Cargojet Inc (CJT.TO) , opens new tab was a standout. Its shares rose 8.5% after the company extended its air transportation services agreement with Amazon. Just two of the 10 major sectors ended lower, including energy. Energy fell 0.4% as the price of oil settled 0.7% lower at $67.00 a barrel. https://www.reuters.com/markets/europe/tsx-futures-flat-us-payrolls-trade-deals-focus-2025-07-03/

2025-07-03 20:11

BRUSSELS, July 3 (Reuters) - The European Commission has proposed an EU climate target for 2040 that allows countries to count carbon credits bought from developing nations towards the EU goal for the first time. Here's what that means, and why the EU move on Wednesday faced criticism from campaigners and some scientists. Sign up here. WHAT ARE CARBON CREDITS? Carbon credits, or offsets, involve funding projects that reduce CO2 emissions abroad in place of cuts to your own greenhouse gas emissions. Examples include forest restoration in Brazil, or converting a city's petrol buses to electric. The buyer counts "credits" for those emission reductions towards its climate goal, and the seller gets finance for their green project. Proponents say the system generates much-needed funding for CO2-cutting efforts in developing nations and lets countries work together to cut emissions around the world. However, the reputation of CO2 credits has been dented by a string of scandals in which credit-generating projects failed to deliver the climate benefits they claimed. WHY IS THE EU BUYING THEM? The European Commission proposed allowing up to 3 percentage points of the EU's 2040 target - to cut net emissions by 90% from 1990 levels - to be covered by carbon credits bought from other countries. The EU's existing climate targets require countries to meet the goals entirely by cutting emissions at home. The bloc's executive Commission said last year it hoped the EU could agree a 90% emissions-cutting target for 2040, with no mention of carbon credits. Tumultuous geopolitics and the economic woes of European industries have since stoked political pushback, with governments from Germany to Poland demanding a softer target. In response, the Commission said it would add flexibilities, and landed on carbon credits as a way to retain a 90% emissions-cutting goal while reducing the domestic steps needed to reach it. EU countries and the European Parliament must negotiate and approve the goal. WHAT ARE THE RISKS? The EU plan was welcomed by countries including Germany, which had pushed to include carbon credits in the goal, and by carbon credit project developers as a boost for climate finance. But environmental campaigners said the EU was shirking domestic CO2-cutting efforts and warned against relying on cheap, low-value credits. The EU's climate science advisers had also opposed buying credits under the 2040 target, which they said would divert money from investments in local clean industries. The EU banned international credits from its own carbon market after a flood of cheap credits with weak environmental benefits contributed to a carbon price crash. To try to address the risks, the Commission said it would buy credits in line with a global market and rules for trading carbon credits which the U.N. is developing. These include quality standards aimed at avoiding the problems that unregulated credit trading has faced in recent years. Brussels will also propose rules next year on specific quality standards for the carbon credits the EU buys. HOW MUCH WILL IT COST? The EU doesn't yet know. Carbon credit prices today can be as low as a few dollars per tonne of CO2, up to more than $100, depending on the project. EU emissions records suggest the bloc would need to buy at least 140 million tonnes of CO2 emissions to cover 3% of the 2040 target, roughly equivalent to the Netherlands' total emissions last year. One senior Commission official said the bloc was determined not to hoover up cheap junk credits. "I don't think that would have any additional value. The credits we see currently on voluntary carbon markets are very, very cheap, and that probably reflects a lack of high environmental integrity," the senior official said. https://www.reuters.com/sustainability/cop/do-international-carbon-credits-fight-climate-change-2025-07-03/

2025-07-03 19:39

Sanctions come ahead of US/Iran talks expected next week Measures target network US says disguised Iranian oil as Iraqi oil Hezbollah-controlled financial institution targeted Reuters reported in December on fuel oil smuggling network VS Tankers denies Treasury's claims WASHINGTON, July 3 (Reuters) - The U.S. imposed sanctions on Thursday against a network that smuggles Iranian oil disguised as Iraqi oil and on a Hezbollah-controlled financial institution, the Treasury Department said. A network of companies run by Iraqi-British national Salim Ahmed Said has been buying and shipping billions of dollars worth of Iranian oil disguised as, or blended with, Iraqi oil since at least 2020, the department said. Sign up here. "Treasury will continue to target Tehran’s revenue sources and intensify economic pressure to disrupt the regime’s access to the financial resources that fuel its destabilizing activities,” Treasury Secretary Scott Bessent said. The U.S. has imposed waves of sanctions on Iran's oil exports over its nuclear program and funding of militant groups across the Middle East. Reuters reported late last year that a fuel-oil smuggling network that generates at least $1 billion a year for Iran and its proxies has flourished in Iraq since 2022. Thursday's sanctions came after the U.S. carried out strikes on June 22 on three Iranian nuclear sites including its most deeply buried enrichment plant, Fordow. The Pentagon said on Wednesday the strikes had degraded Iran's nuclear program by up to two years, despite a far more cautious initial assessment that had leaked to the public. The U.S. and Iran were expected to hold talks about its nuclear program next week in Oslo, Axios reported. Said’s companies and vessels blend Iranian oil with Iraqi oil, which is then sold to Western buyers via Iraq or the United Arab Emirates as purely Iraqi oil using forged documentation to avoid sanctions, Treasury said. Said controls UAE-based company VS Tankers though he avoids formal association with it, Treasury said. Formerly known as Al-Iraqia Shipping Services & Oil Trading (AISSOT), VS Tankers has smuggled oil for the benefit of the Iranian government and the Islamic Revolutionary Guard Corps, which is designated by Washington as a terrorist organization, it said. The sanctions block U.S. assets of those designated and prevent Americans from doing business with them. VS Tankers denied Treasury's assertions and said it will "pursue all legal remedies as necessary." Iran's mission in New York did not immediately respond to a request for comment. The U.S. also sanctioned several vessels that are accused of engaging in the covert delivery of Iranian oil, intensifying pressure on Iran’s “shadow fleet,” it said. The Treasury Department also issued sanctions against several senior officials and one entity associated with the Hezbollah-controlled financial institution Al-Qard Al-Hassan. The officials, the department said, conducted millions of dollars in transactions that ultimately benefited, but obscured, Hezbollah. https://www.reuters.com/world/middle-east/us-imposes-new-sanctions-targeting-iran-oil-trade-hezbollah-treasury-dept-says-2025-07-03/

2025-07-03 19:27

Pause on US tariffs set to end on July 9 OPEC+ expected to raise output by 411,000 bpd US crude inventories rise unexpectedly NEW YORK, July 3 (Reuters) - Oil prices fell slightly on Thursday as investors worried that U.S. tariffs could slow energy demand ahead of an expected supply boost by major crude producers. Brent crude futures settled 31 cents, or 0.45%, lower to $68.80 a barrel. U.S. West Texas Intermediate crude fell 45 cents, or 0.67%, to $67 in thin trade on the eve of the Independence Day holiday. Sign up here. President Donald Trump's 90-day pause on implementation of higher U.S. tariffs ends on July 9, and several large trading partners have yet to clinch trade deals, including the European Union and Japan. Oil traders are worried about the impact on the economy and fuel demand. A preliminary trade deal between the U.S. and Vietnam boosted prices on Wednesday, but overall tariff uncertainty looms large. Also weighing on prices, OPEC+ is expected to agree to raise output by 411,000 barrels per day at its policy meeting this weekend. Also, a private-sector survey showed service activity in China - the world's biggest oil importer - expanded in June at its slowest pace in nine months as demand weakened and new export orders declined. In the U.S., a surprise build in crude inventories also highlighted demand concerns in the world's biggest crude consumer. The U.S. Energy Information Administration said on Wednesday that domestic crude inventories rose by 3.8 million barrels to 419 million barrels last week. Analysts in a Reuters poll had expected a drawdown of 1.8 million barrels. U.S. energy firms this week cut the number of oil rigs by seven to 425, their lowest since September 2021, energy services firm Baker Hughes (BKR.O) , opens new tab said in its closely followed report on Thursday. Oil rig count is an indicator of future output. U.S. job growth was solid in June while unemployment rates fell unexpectedly, data showed on Thursday. However, nearly half of the increase in nonfarm payrolls came from the government sector, with private sector gains slowing considerably as industries like manufacturing and retail grappled with Trump's aggressive tariffs on imports. "Thursday's jobs report was stronger than expected, which shows that the resiliency we have been seeing in the economy over the past several months is still intact. We still expect the Federal Reserve to continue its wait-and-see approach on interest rates," said David Laut, chief investment officer of Abound Financial. Both contracts hit one-week highs on Wednesday as oil producer Iran suspended cooperation with the U.N. nuclear watchdog, raising concerns that the lingering dispute over its nuclear programme could again evolve into armed conflict. Washington imposed new Iran-related sanctions on Thursday as well as sanctions targeting the Hezbollah network, the U.S. Treasury Department website showed. "For now, the market's going to take it in stride, because none of these efforts have worked in the past," said John Kilduff, a partner at Again Capital. https://www.reuters.com/business/energy/oil-eases-us-tariff-uncertainty-opec-output-expectations-2025-07-03/

2025-07-03 19:13

July 3 (Reuters) - J.P.Morgan on Thursday forecast stablecoin growth will only reach $500 billion by 2028, calling trillion-dollar projections "far too optimistic", as there was little evidence of mainstream adoption of the dollar-pegged cryptocurrency token. Stablecoins have moved beyond their crypto trading roots to attract interest from fintechs and banks aiming to speed up payments and settlements, drawing attention from U.S. lawmakers, who last month passed the GENIUS Act in the Senate - a step analysts said could bring long-awaited regulatory clarity. Sign up here. Before the Senate passed the stablecoin bill, Standard Chartered projected the market could reach $2 trillion by 2028, while Bernstein forecast in a June 30 note that supply would grow to about $4 trillion over the next decade. But J.P.Morgan said payments adoption of stablecoins remains minimal, accounting for just 6% of demand, or about $15 billion. It estimated the stablecoin market at $250 billion, with most usage concentrated in crypto trading, decentralized finance and collateral. "The idea that stablecoins will replace traditional money for everyday use is still far from reality," the brokerage said. Stablecoin adoption beyond crypto markets faces hurdles from limited use cases and fragmented regulation, while international uptake remains limited as most countries focus on their own digital currencies or strengthening existing payment systems. In June, the head of China's central bank pledged to expand the international use of the digital yuan or e-CNY. Ant Group (688688.SS) , opens new tab, an affiliate of e-commerce giant Alibaba (9988.HK) , opens new tab, said it plans to apply for a license to issue stablecoins in Hong Kong through its overseas arm Ant International, which operates mobile payment app Alipay. "Neither the rapid expansion of e-CNY nor the success of Alipay and WeChat Pay represent templates for stablecoin expansion in the future," J.P.Morgan said. https://www.reuters.com/business/finance/jpmorgan-wary-stablecoins-trillion-dollar-growth-bets-cuts-them-by-half-2025-07-03/

2025-07-03 17:54

PARIS, July 3 (Reuters) - French utility EDF expects to spend 6 billion euros ($7.05 billion) on extending the life of 20 of its nuclear reactors, it said on Thursday, after getting the go-ahead from the country's nuclear regulator. The ASN said that state-owned EDF could proceed with upgrading safety standards at its 1300MW reactors so they could operate beyond their original 40-year lifespan. Sign up here. Raising the safety standards to match those of newer European Pressurised Reactor models would cost an estimated 6 billion euros, said EDF in a statement, adding that preparatory work on the first of the reactors had already begun last year. French President Emmanuel Macron has made expanding the country's nuclear production capability a flagship project, both by extending the lifetimes of existing sites and building at least six new reactors in coming decades. The plans come at a difficult time for heavily indebted EDF, which has faced project delays, budget overruns on new plants and defects in some reactors. They also come as the cash-strapped French government tries to push a budget with 40 billion euros in savings through a divided parliament. The state already stumped up around 10 billion euros to nationalise EDF in 2023. However, CEO Bernard Fontana, appointed earlier this year, has been tasked with jumpstarting the nuclear ramp-up and is currently seeking ways to bring in money to finance upgrades and new builds, including possible asset sales. The regulator said it will issue specific safety requirements for each reactor during its 40-year inspection. Additionally, EDF will be required to provide annual reports detailing its progress in meeting these conditions. The decision concerns 20 reactors out of the country's 56-strong fleet, which will reach their currently approved lifespan between 2026 and 2040. The regulator previously approved extensions for EDF's 32 smaller 900MW reactors. ($1 = 0.8516 euros) https://www.reuters.com/sustainability/boards-policy-regulation/edf-spend-estimated-7-billion-extending-life-nuclear-plants-2025-07-03/