2025-07-16 05:56

DUBAI, July 16 (Reuters) - A foreign tanker was seized by Iran in the Gulf of Oman for smuggling 2 million litres of fuel, the chief justice of Hormozgan province said on Wednesday, according to Iran's semi-official Mehr news agency. "During the continuous process of monitoring and surveilling suspicious fuel smuggling movements in the Gulf of Oman, officers inspected a foreign tanker due to its lack of legal documents regarding its cargo and seized it on charges of carrying 2 million litres of smuggled fuel," Hormozgan's Chief Justice Mojtaba Ghahremani said, according to the report. Sign up here. The judiciary official added that 17 crew members were arrested and that a judicial case was opened at the Jask county prosecutor's office. There was no additional information regarding the name of the tanker or the flag to which it is registered. Iran, which has some of the world's lowest fuel prices due to heavy subsidies and the plunge in the value of its national currency, has been fighting rampant fuel smuggling by land to neighbouring countries and by sea to Gulf Arab states. "The actions of fuel smugglers, who in coordination with foreigners, attempt to plunder national wealth will not remain hidden from the judiciary and punishment of perpetrators, if their crimes are proven, will be without leniency," Ghahremani said, according to the report. https://www.reuters.com/world/middle-east/iran-seizes-foreign-tanker-smuggling-2-million-litres-fuel-2025-07-16/

2025-07-16 05:36

Trump denies media reports he will fire Fed Chair Powell Producer prices unchanged in June Traders price in rising odds of rate hikes this year NEW YORK, July 16 (Reuters) - The U.S. dollar fell but rose off its lows on Wednesday after U.S. President Donald Trump denied news reports that he is planning to fire Federal Reserve Chair Jerome Powell. Bloomberg reported that the president is likely to fire Powell soon. A source also told Reuters that Trump is open to the idea of firing Powell and polled some Republican lawmakers on firing Powell and received a positive response. Sign up here. But Trump said that the reports are not true. "I don't rule out anything, but I think it's highly unlikely unless he has to leave for fraud," Trump said, a reference to recent White House and Republican lawmaker criticism of cost overruns in the $2.5 billion renovation of the Fed's historic headquarters in Washington. Removing Powell before his term ends in May would be negative for the dollar as it would undermine credibility in the U.S. financial system and the dollar as a safe-haven currency. "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. Trump has railed against Powell for months for not easing rates, which he says should be at 1% or lower. The dollar index , which measures the greenback against a basket of currencies, including the yen and the euro, was last down 0.25% on the day at 98.34, with the euro up 0.3% at $1.1633. Against the Japanese yen , the dollar weakened 0.7% to 147.82. Sterling strengthened 0.24% to $1.3411. If Trump were to fire Powell the markets would likely see a larger negative reaction in the dollar, said Francesco Pesole, FX strategist at ING in London. "Euro/dollar is at $1.17 and should be trading higher on this because the implications are massive. Markets are still not fully pricing this all in. You would expect that if Powell is removed today then the Fed cuts in September," he said. The single currency got as high as $1.1721 on Wednesday. Fed funds futures traders are now pricing in 47 basis points of cuts by year-end, up from 44 basis points before the news reports. The dollar gained earlier against the euro as traders bet that the U.S. central bank may be less likely to cut rates two times this year following an uptick in consumer prices in June, even though producer price inflation data on Wednesday was steady. U.S. producer prices were unexpectedly unchanged in June as an increase in the cost of goods because of tariffs on imports was offset by weakness in services. Tuesday's release showed U.S. consumer prices increased by the most in five months in June amid higher costs for some goods, suggesting that Trump's tariffs were starting to have an impact on inflation. "Yesterday's reaction to the inflation data was very positive for the U.S. dollar overall," said Eric Theoret, FX strategist at Scotiabank in Toronto. Investors continue to focus on tariffs ahead of an August 1 deadline when many trading partners face higher trade levies. Trump said on Wednesday the U.S. will probably "live by the letter" on tariffs with Japan and may have another trade deal coming up with India, following his announcement of an accord with Indonesia on Tuesday. In Japan, investors are focused on a potential power shift in upper house elections this weekend that could strain already frail finances, with long-dated yields soaring to all-time highs as the vote nears. In cryptocurrencies, bitcoin gained 2.82% to $119,761 but held below a record high of $123,153 reached on Monday. https://www.reuters.com/world/middle-east/dollar-drops-choppy-trading-trump-denies-plans-fire-feds-powell-2025-07-16/

2025-07-16 04:32

A look at the day ahead in European and global markets from Kevin Buckland The investing world will be watching U.S. factory inflation on Wednesday, after consumer price data pulled Wall Street back from all-time highs overnight, with Fed predictions of tariff-induced inflationary effects starting to be realized. Sign up here. Both the S&P 500 (.SPX) , opens new tab and Nasdaq (.IXIC) , opens new tab - and by extension, MSCI's world equities index (.MIWD00000PUS) , opens new tab - retreated from record peaks after traders shaved back bets of U.S. rate cuts this year as prices rose for things such as coffee and couches, while staying steady for tariff-exempted (for now) items such as cars. That swung the spotlight squarely onto producer price data due later today, which could reveal an even bigger building of price pressures, because businesses may still be holding back on passing higher costs to consumers. This validates Fed Chair Jay Powell's repeated assertion that an expected emergence of tariff-led inflation uptick this summer is cause to hold off on further interest rate cuts for now. Traders were listening, trimming back bets to 43 basis points of cuts over the rest of the year, from closer to 50 basis points earlier in the week. President Donald Trump's reading of the data was different though, as he took to his Truth Social platform to post, "Consumer Prices LOW. Bring down the Fed Rate, NOW!!!" Trump has repeatedly railed against the Fed for not cutting rates, even calling for Powell's resignation, which has fuelled concerns that the U.S. President aims to put the Fed under his thumb. Powell's tenure ends in May next year, but he has a seat on the Board of Governors until January 2028. Trump said Tuesday that Treasury Secretary Scott Bessent could be a candidate to replace Powell, but "because I like the job he's doing" currently, he may not end up as a contender. Bessent, meanwhile, said in an interview on Bloomberg Surveillance that a "formal process" is already starting to identify the next Fed Chair. As if that wasn't enough to keep investors busy, the U.S. earnings season has also just gotten underway. JPMorgan Chase (JPM.N) , opens new tab and Citigroup (C.N) , opens new tab beat expectations on Tuesday, but were met with a mixed market response. Bank earnings due Wednesday include Goldman Sachs, Morgan Stanley and Bank of America, while Johnson & Johnson will give more of a snapshot of how consumers are faring. The corporate calendar by contrast is relatively quiet in Europe, where stock futures are pointing to a mixed open, and Britain's FTSE (.FTSE) , opens new tab reopens after hitting an all-time peak on Tuesday only to then end the day down 0.7%, its biggest fall since post-"Liberation Day" tariff turmoil in early April. The main event will be UK consumer price data, with the consensus among economists for headline inflation to hold steady at 3.4%. Bank of England policymaker Catherine Mann said on Tuesday that inflation pressures remained a challenge despite a fall in the pace of pay growth in recent months. Key developments that could influence markets on Wednesday: - UK consumer price index (CPI) for June. - U.S. earnings: Morgan Stanley, Goldman Sachs, Bank of America, Johnson & Johnson. - U.S. industrial production, producer price index (PPI). - U.S. Federal Reserve officials speaking, including Governor Michael Barr. Trying to keep up with the latest tariff news? Our new daily news digest offers a rundown of the top market-moving headlines impacting global trade. Sign up for Tariff Watch here. https://www.reuters.com/world/europe/global-markets-view-europe-2025-07-16/

2025-07-16 03:14

MUMBAI, July 16 (Reuters) - The Indian rupee is set to open weaker on Wednesday after June U.S. inflation data hinted at tariff-driven price pressures, prompting markets to scale back bets of Federal Reserve rate cuts and pushing the dollar and U.S. yields higher. The 1-month non-deliverable forward indicated an open in the 85.96-85.98 range versus 85.81 on Tuesday. The rupee has repeatedly avoided breaching the 86 level the last three sessions. Sign up here. The question is whether the USD/INR can finally break through the 86–86.10 zone and push higher, said a currency trader at a Mumbai-based bank. "There's little doubt that stop losses - both corporate and interbank - will be triggered if we see a decisive break past 86." DOLLAR CLIMBS, U.S. YIELDS RISE The dollar index rose 0.5% to its highest in three weeks on Tuesday, while the 30-year Treasury yield inched past 5% after U.S. inflation data indicated evidence of tariff impacts. Prices increases across an array of goods drove inflation higher in June in what economists see as evidence of the Trump administration's increasing import taxes passing through to consumers. U.S. consumer prices rose 0.3% in June, a roughly 3.5% annual rate, after a 0.1% increase in May. In its daily market update, Morgan Stanley said that U.S. inflation is beginning "to show signs of tariff pressure". Markets have digested tariff inflation effects and appear to "seemingly brace for the Fed to remain on hold for longer", it added. Odds of a Fed rate cut in September fell after the data, with markets now pricing in 44 basis points of cuts this year, down from more than 50 bps before the data. Expectations of a July cut, already minimal, declined further. "The increased uncertainty about tariffs and the extension of the trade talks deadline to 1 August suggest the Fed will need a few more months of data before cutting the policy rate," ANZ Bank said. KEY INDICATORS: ** One-month non-deliverable rupee forward at 86.08; onshore one-month forward premium at 10 paise ** Dollar index up at 98.60 ** Brent crude futures up 0.3% to $68.9 per barrel ** Ten-year U.S. note yield at 4.48% ** As per NSDL data, foreign investors sold a net $91.8 million worth of Indian shares on July 14 ** NSDL data shows foreign investors sold a net $30.7 million worth of Indian bonds on July 14 https://www.reuters.com/world/india/tariff-tinged-us-inflation-boosts-dollar-set-weigh-rupee-2025-07-16/

2025-07-16 02:06

Trump has railed against Powell for not lowering interest rates Bessent says formal process under way Many good candidates, Bessent says Trump says cost overruns on Fed project could be firing offense WASHINGTON, July 15 (Reuters) - President Donald Trump said on Tuesday that Treasury Secretary Scott Bessent could be a candidate to replace Federal Reserve Chairman Jerome Powell, but suggested that might not happen. After landing at Joint Base Andrews following a trip to Pittsburgh, Trump was asked if Bessent was his top choice to replace Powell, whose term ends in May 2026. Sign up here. "He's an option, and he's very good. Well, he's not, because I like the job he's doing, right?" Trump told reporters. Trump has railed against Powell for months for not lowering U.S. interest rates and has repeatedly urged him to resign. On Tuesday, Trump said cost overruns on a $2.5 billion renovation of the Fed's historic Washington headquarters could amount to a firing offense. "I think it sort of is," Trump said, when asked if he could fire the Fed chair over the renovation cost overruns, which have been sharply criticized by Trump administration officials. The president cannot fire Powell over a monetary policy dispute. Trump had originally appointed Powell, a fellow Republican, during his first time in office, and he was reappointed to a second term as Fed chief by Democratic President Joe Biden, With the unemployment rate low and inflation above the Fed's 2% target, U.S. central bank officials have been reluctant to cut interest rates from the current 4.25% to 4.5% range until it is clear that Trump's tariff policies won't lead to a fresh surge in prices. U.S. data on Tuesday showed that consumer prices rose across an array of goods from coffee to audio equipment to home furnishings in what economists say is evidence that the increasing import duties are being passed through to consumers. Overall consumer prices rose 0.3% in June, a roughly 3.5% annual rate, after a 0.1% increase in May. Other people under consideration to replace Powell include former Fed Governor Kevin Warsh and Trump's top economic adviser, Kevin Hassett. Bessent, who has also played a key role in Trump's trade negotiations with a host of countries, told Bloomberg Surveillance on Tuesday that a "formal process" was already starting to identify a potential successor to Powell. "There are a lot of great candidates, and we’ll see how rapidly it progresses," Bessent said. He said it would be confusing for Powell to remain at the Fed after his term as chair ends in May 2026. Powell's term as Fed governor extends until January 31, 2028. Trump administration officials argue that a tax bill nearing passage in Congress will boost private sector investment and strengthen the U.S. economy, and insist that while tariff increases could result in a one-time bump in prices, they should not drive up inflation over the longer term. https://www.reuters.com/world/us/trump-bessent-an-option-replace-fed-chair-but-i-like-job-hes-doing-2025-07-15/

2025-07-16 01:57

July 15 (Reuters) - U.S. President Donald Trump is expected to sign an executive order in the coming days designed to help make private-market investments more available to U.S. retirement plans, the Wall Street Journal reported , opens new tab on Tuesday, citing people familiar with the matter. The Trump order would instruct the U.S. Labor Department and the Securities and Exchange Commission to provide guidance to employers and plan administrators on including investments like private assets in 401(k) plans, according to the WSJ report. Sign up here. The White House declined to comment on the report. Bryan Corbett, president and CEO of MFA, a trade association that represents alternative asset management options such as private credit and hedge funds, hailed the expected order. "Expanding access to alternative investments in 401(k) retirement plans will provide more Americans with the diversification and investment options needed to build wealth and save for successful retirement," he said in a statement. Private-market investments, often referred to as private assets, include private equity, venture capital, real estate and hedge funds. These assets are not traded on public exchanges and are typically characterized by higher risk and potentially higher returns compared to traditional public-market investments like stocks and bonds. https://www.reuters.com/world/us/trump-order-help-open-up-retirement-plans-private-markets-wsj-reports-2025-07-15/