2025-07-23 00:36

Both sides hope for modest climate agreement at shortened summit EU officials will raise trade imbalance, Ukraine, rare earths EU expecting few concrete actions from China on key issues BEIJING, July 22 (Reuters) - Expectations are rock-bottom for an EU-China summit on Thursday that will test European resolve and unity as the bloc faces intense trade pressure from both Beijing and the United States, analysts say. European Commission President Ursula von der Leyen and European Council President Antonio Costa plan to press Chinese leaders on rare earths and the war in Ukraine, both areas of tension, during the summit in Beijing. Sign up here. There is little hope for headway, at a time both sides face major challenges sustaining economic growth and Europe struggles to shore up support for Ukraine. The summit was shortened from two days to one due to a "scheduling conflict" raised by Chinese officials, two sources familiar with the planning told Reuters. A business roundtable that was meant to happen on the second day in the city of Hefei will now take place in Beijing, one of the sources said. Both sides may reach a modest joint statement on climate, one of the sources said, but no other tangible achievements are expected. In multiple recent speeches, von der Leyen has revived hawkish China rhetoric, accusing China , opens new tab on July 8 of "enabling Russia's war economy" and flooding global markets with overcapacity. "We know that we don't see eye to eye with China on many issues, but we believe that it is essential to have this kind of very direct and open and constructive conversation," said one EU official. The official and the sources declined to be identified as they were not authorised to speak to media. A spokesperson for the European Commission referred to a statement announcing the summit, which said leaders would discuss ways of ensuring "a more balanced, reciprocal and mutually beneficial trade relationship". In response to Reuters' questions, the Chinese foreign ministry referred to a spokesperson's statement on Monday. "Some people in Europe continue to ... exaggerate specific economic and trade issues and make groundless accusations against China on the Ukraine issue, causing unnecessary interference to China-EU relations," its spokesperson said. RISING TENSIONS The 27-member European Union has also been negotiating hard with Washington after U.S. President Donald Trump threatened 30% tariffs on most EU exports from Aug. 1, with prospects for a broader trade deal fading. At the Beijing summit, China hopes to press the EU for a solution to its tariffs on China-built electric vehicles, for which Beijing claims price commitment negotiations are in the "final stages". But European officials say there has been little progress for months. Last week, China threatened to respond to EU sanctions on two Chinese banks and five firms over the Ukraine war. Its commerce ministry said on Monday the sanctions "seriously harmed trade, economic and financial ties". Other trade disputes are simmering in the background. China retaliated against EU restrictions on medical device procurement with its own curbs on July 6, and slapped duties on French cognac producers. China's exports to the EU grew in May while its U.S. exports plunged 34.5% in value terms the same month, sparking fears Chinese trade overcapacity is being diverted to the bloc due to U.S. tariffs on Chinese goods. There is also a growing sense that EU firms are collateral damage for China's rare earth export controls that primarily targeted Washington but have disrupted European defence and automotive supply chains. In return for concessions on rare earths, China's asks could include reviving a long-stalled investment agreement after Beijing lifted sanctions on European Parliament members in May, and pushing back on U.S. export curbs on Dutch firm ASML's chipmaking equipment. China has raised both in the weeks leading up to the summit, two sources familiar with the matter said. 'GLOVES OFF' "The mood is extremely pessimistic in Europe regarding the summit," said Mathieu Duchatel, a director at the Institut Montaigne think tank in Paris, adding that Washington rejected previous EU proposals for coordination on China policy. "There is a sense that the gloves are completely off on the Chinese side ... They sense the transatlantic relationship has weakened and are trying to seize the opportunity." Diplomats and analysts also say that China is growing increasingly frustrated behind closed doors with European officials' repeated insistence on the war in Ukraine, which Beijing views as an obstacle in the relationship. There is little space for constructive dialogue on this, another EU official admitted, with Chinese counterparts denying evidence of Chinese firms' involvement in supplying dual-use goods to Russia. Meanwhile, China believes Europe will cave in to U.S. tariff pressure, said a diplomat familiar with Chinese official thinking. Beijing succeeded in getting Trump to lower crushing 145% tariffs during talks in May and scored a further win when Washington agreed to resume Nvidia H20 AI chip exports, leaving it in a relatively strong position. "This will be the latest in a long list of EU-China summits that have delivered next to nothing," said Noah Barkin, senior advisor at Rhodium Group's China practice. "It is a sign that the economic and security problems in the relationship have become so deep-seated as to be irreconcilable." https://www.reuters.com/world/china/eu-leaders-brace-frosty-china-summit-trade-frictions-bite-2025-07-22/

2025-07-22 23:56

TOKYO, July 22 (Reuters) - Japan has launched an anti-dumping investigation into nickel-based stainless cold-rolled steel sheets and strips imported from China and Taiwan, its trade and finance ministries said on Tuesday. The move follows a petition filed on May 12 by Nippon Steel (5401.T) , opens new tab and other domestic manufacturers, who claim they have been forced to lower prices due to weakening domestic demand as buyers have shifted to cheaper imports. Sign up here. The Ministry of Economy, Trade and Industry and the Ministry of Finance plan to complete the investigation within a year and will then decide whether to impose anti-dumping duties. According to the application submitted by the steelmakers, imported products were being sold in Japan at prices 20% to 50% lower than those in China and 3% to 20% lower than those in Taiwan. The Japanese steelmakers claim they have been unable to set prices that reflect rising costs, leading to a decline in operating profits and other damages. Excess production and exports by Chinese steelmakers have become an international concern. Japan is among a number of countries that have criticised Chinese companies for receiving government subsidies to produce excess steel and then exporting it at cheap prices, worsening global market conditions. While other countries have imposed anti-dumping measures or similar actions against China, Japan has yet to do so. Tadashi Imai, chairman of the Japan Iron and Steel Federation and also president of Nippon Steel, has repeatedly warned the global rise in protectionism could leave Japan vulnerable to inexpensive steel imports, hurting domestic production. Taiwan's economy ministry, in a statement sent to Reuters, said when it came to such cases it would help impacted companies respond "in order to protect their export interests." China's commerce ministry did not immediately respond to a request for comment. https://www.reuters.com/world/china/japan-launches-anti-dumping-probe-into-stainless-steel-sheets-china-taiwan-2025-07-22/

2025-07-22 23:47

July 23 (Reuters) - Australia's Woodside Energy (WDS.AX) , opens new tab reported a stronger-than-expected 8% rise in second-quarter revenue on Wednesday due to robust output from Senegal's Sangomar project, though it marginally lowered its annual production forecast following an asset divestment. Woodside in late March agreed to sell offshore oil and gas assets in Trinidad and Tobago to London-based Perenco, which included production facilities and interests in the shallow water Angostura and Ruby fields within the Greater Angostura project. Sign up here. The country's top gas producer posted revenue of $3.28 billion for the three months ended June 30, surging 8% from $3.04 billion a year earlier and comfortably exceeding the Visible Alpha consensus estimate of $3.09 billion. The revenue beat underscores the strong performance of the Sangomar project, which has emerged as a key growth driver for the company. Overall production jumped 13% to 50.1 million barrels of oil equivalent (mmboe) during the quarter, up from 44.4 mmboe in the same period last year. As a result of the asset sale, Woodside marginally adjusted its 2025 production forecast to between 188 and 195 mmboe, compared with its previous guidance range of 186 to 196 mmboe. https://www.reuters.com/business/energy/woodsides-second-quarter-revenue-beats-estimates-sangomar-output-trims-2025-2025-07-22/

2025-07-22 23:46

July 23 (Reuters) - Australia's top fuel retailer Ampol Ltd (ALD.AX) , opens new tab on Wednesday forecast weaker half-year earnings as sea-freight conditions impacted its supply chain, and reported a 1.1% drop in second-quarter refining margins at its Lytton refinery. The company expects first-half earnings before interest and tax on a replacement cost basis (RCOP EBIT) to be A$400 million ($262.04 million), compared with A$502.1 million a year earlier. Sign up here. The second-quarter refining margin at its Lytton refinery in Queensland, one of the company's key assets, decreased to $8.71 per barrel in the second quarter, down from $8.81 last year. Over the year, operational disruptions such as planned maintenance and loss of production days due to Cyclone Alfred, coupled with weak refining margins in Singapore, have weighed on refining margins and the output levels of the Queensland refinery. However, the refinery margin increased from the prior quarter's $6.07 per barrel, due to improved product crack - the difference between the price of crude oil and the prices of the refined petroleum products - in the later part of the year. The Sydney-based firm reported second-quarter total sales volume of 6,304 million liters (ML), down 4.7% from a year earlier. Its Lytton refinery output for the second quarter was 1,406 ML, compared to 1,420 ML logged a year earlier. The company is slated to report its half-year financial results on August 18. ($1 = 1.5265 Australian dollars) https://www.reuters.com/business/energy/ampol-forecasts-lower-half-year-earnings-supply-chain-impacts-2025-07-22/

2025-07-22 23:38

MEXICO CITY, July 22 (Reuters) - Mexican lender Banorte's (GFNORTEO.MX) , opens new tab net profit ticked up 4% in the second quarter, lifted by a double-digit jump in its loan book, it reported on Tuesday. Net profit for the period was 14.62 billion pesos ($779.09 million), but below the 15.01-billion-peso estimate from analysts polled by LSEG. Sign up here. Net interest income, the difference between what banks earn on loans and dole out in deposits, grew 12% from the year-ago quarter, which Banorte attributed to a more diversified portfolio and lower funding costs. That rise helped offset an 887-million-peso hit from foreign exchange impacts, Banorte, one of Mexico's largest banks, said. The growth comes during an interest-rate-cutting cycle from Mexico's central bank, which in June trimmed the benchmark rate to its lowest level in nearly three years. Lower rates typically pressure rate margins. Banorte's total portfolio, minus government loans, posted 13% growth year-on-year. The consumer segment posted the strongest performance, with auto loans climbing 30% and credit card loans rising 18%. Corporate and commercial loans also grew in the double digits, though government lending fell as loans were paid back early. Return on equity, a key measure of profitability, ticked up to 23.6% from 23.3% a year earlier, while the bank's non-performing loan ratio held steady at 1.1%. Banorte maintained its full-year guidance, projecting net income between 59.6 billion and 62.1 billion pesos and loan growth of 8% to 11%. "Given Banorte's track record, we translate (that) into confidence on the provided ranges, particularly in loan growth," analysts at Citi wrote in a note, saying it was a key concern among investors. MONEY LAUNDERING JITTERS Banorte's CEO, Marcos Ramirez, told journalists that the lender was wrapping up its relationships with firms which in June had been targeted by the U.S. Treasury for alleged money laundering concerns. The sanctions applied to three financial institutions -- CIBanco, Intercam Banco and Vector Casa de Bolsa -- and while the groups are relatively small, they have sent shockwaves through Mexico's banking system. Ramirez said Banorte had doubled down on its own anti-money laundering standards, which it had boosted earlier in the year after calls to do so from the U.S. Ramirez said as head of Mexico's banking association, the group was unaware of any investigations into other groups, which the market has widely speculated. ($1 = 18.7654 pesos at end-June) https://www.reuters.com/business/finance/mexicos-banorte-posts-4-profit-bump-loan-book-grows-2025-07-22/

2025-07-22 23:14

FRANKFURT, July 23 (Reuters) - Central banks risk being blindsided by climate-driven shocks to global labour markets unless they overhaul their approach to monetary policy, a report published on Wednesday by the London School of Economics warned. The study found that, even under relatively optimistic scenarios in which global warming is limited to 1.5-2 degrees, climate change would lower labour productivity, particularly in agriculture, construction and other sectors exposed to heat. Sign up here. With up to 1.2 billion workers in 182 countries vulnerable to climate disruption, the report by the Centre for Economic Transition Expertise (CETEx) urged monetary authorities to pay greater attention to environmental risks - from natural disasters to the consequences of the green transition. "Our research shows that central banks should seek to integrate environmental employment risks into their policies and operations," said Joe Feyertag, senior policy fellow at CETEx and author of the report. The European Central Bank and the Bank of England have highlighted the dangers stemming from climate change and its potential impact on inflation, growth and banks' health. But the U.S. Federal Reserve, in many ways the world's most influential central bank, withdrew from a climate-focused network of authorities earlier this year, raising questions about the depth of its engagement on these issues. The report found rich countries were most at risk from the shift away from pollution-intensive industries. By contrast, poorer regions in Africa, Asia and Latin America faced a bigger threat from physical risk such as floods and droughts. These divergent pressures, combined with demographic shifts and tighter immigration policies, could further strain labour markets in developed countries while loosening them in emerging ones, the study said. Feyertag also warned that labour market disruptions could amplify social inequalities, especially in countries with rigid labour markets Inflation tends to be higher in a tighter labour market, all other factors being equal. Low productivity can also contribute to high inflation. Feyertag reviewed 114 central bank mandates and found just 15 of them, including the Bank of England, explicitly reference employment as a main or secondary objective. The Fed and Reserve Bank of Australia include jobs as a core policy goal. This could give some of these banks cover to take bolder action in order to cushion the labour-market impact of climate change. "If their mandate allows, (central banks) could even take more active steps to stimulate demand for workers from low-carbon or climate-resilient employment opportunities and thereby smoothen this path," Feyertag said. https://www.reuters.com/sustainability/cop/central-banks-told-prepare-climate-shock-labour-market-2025-07-22/