2025-06-19 07:26
BEIJING, June 19 (Reuters) - China's commerce ministry said on Thursday that "a certain number" of rare earth export licence applications had been approved, but declined to give further details such as the exact amount and how many had been extended to U.S. firms. "China will continue to strengthen the approval process for compliant applications, and is willing to further enhance communication and dialogue with relevant countries on export controls," He Yadong, a ministry spokesperson told a regular news conference. Sign up here. https://www.reuters.com/world/china/china-has-granted-rare-earth-export-licences-some-firms-commerce-ministry-says-2025-06-19/
2025-06-19 07:01
MUMBAI, June 19 (Reuters) - The Indian rupee declined on Thursday to hover around its weakest level in over two months, as persistent worries about escalation in the Iran-Israel air war kept oil prices elevated and dented risk sentiment. The rupee was quoted at 86.6875, as of 12:20 p.m. IST, down 0.2% from its close of 86.4475 on Wednesday. Earlier in the session, it touched 86.71 - its lowest level since April 9. Sign up here. The dollar index was up about 0.2% at 99 and Asian currencies declined, as the possible entry of the United States into the week-old Israel-Iran air war kept financial markets on edge. The Israeli military said on Thursday it had targeted the nuclear reactor in the area of Arak in Iran overnight and what it called a nuclear weapons development site in the area of Natanz. The geopolitical tensions have sparked a jump in oil prices, with Brent crude futures last at $76.8 per barrel, up nearly 19% on the month so far. Traders also pointed to dollar demand from importers weighing on the rupee on the day. The rupee could decline towards 86.70-86.80 if dollar strength and elevated crude oil prices persist, said Amit Pabari, managing director at FX advisory firm CR Forex. Meanwhile, the U.S. Federal Reserve expectedly kept policy rates unchanged on Wednesday. Fed Chair Jerome Powell said that he expects "meaningful" inflation ahead as consumers pay more for goods due to the Trump administration's planned import tariffs. https://www.reuters.com/world/india/middle-east-tensions-importer-dollar-bids-keep-rupee-backfoot-2025-06-19/
2025-06-19 06:55
LONDON, June 19 (Reuters) - Equnior (EQNR.OL) , opens new tab and Gwynt Glas, a joint venture between EDF Renewables UK and ESB, have won seabed leases to build floating wind farms in the Celtic Sea off the coast of Wales and South West England, The Crown Estate said on Thursday. Britain is aiming to largely decarbonise its electricity sector by 2030 to reduce its reliance on fossil fuels and drive down cost and is seeking to increase offshore wind capacity to 43-50 gigawatts (GW) by the end of the decade, from around 16 GW at present. Sign up here. “Floating offshore wind will be transformative for economic growth in Wales and the South West, unlocking thousands of jobs in places like Port Talbot and Bristol, bolstering our energy security and delivering industrial renewal,” Britain’s Energy Secretary Ed Miliband said in the Crown Estate press release. The Crown Estate, which acts as manager of the seabed around England, Wales and Northern Ireland, said Equnior and Gwynt Glas had both won leases giving them the rights each to build 1.5 gigawatt (GW) floating wind projects in its latest seabed leasing round. The companies will pay 350 pounds ($468.55) per megawatt per year for the leases, the Crown Estate said, meaning both groups will pay 525,000 pounds per year for the sites excluding VAT. Floating wind projects can be installed in deeper waters than fixed-bottom foundations, harnessing stronger and more continuous wind to generate more power. The Crown Estate is an independently run, commercial business, whose profits go to the Treasury but its profits are also used as the benchmark for the level of public funding for the Royal Family. ($1 = 0.7470 pounds) https://www.reuters.com/sustainability/climate-energy/equinor-gwynt-glas-win-uk-floating-offshore-wind-leases-2025-06-19/
2025-06-19 06:53
No constraint in pursuing our goals, CEO says Capital increase is an option to fund investment, vice chairman says Nippon Steel shares rise 2.5%, outperforming Nikkei 225 TOKYO, June 19 (Reuters) - The U.S. government's ownership of a golden share in U.S. Steel will not block Nippon Steel (5401.T) , opens new tab from taking any management action that it deems appropriate, the Japanese steelmaker's CEO said on Thursday. Eiji Hashimoto spoke at a press conference in Tokyo a day after Japan's top steelmaker closed its $14.9 billion acquisition of U.S. Steel, confirming Nippon Steel had agreed to give the U.S. government unusual power to help end its 18-month battle to reach a deal. Sign up here. The national security agreement inked with U.S. President Donald Trump's administration hands Washington a non-economic golden share and gives the president the authority to name a board member. "We won't be constrained in pursuing anything we aim to do," Hashimoto said, when asked how the golden share would influence management freedom. "We retain sufficient managerial freedom," he said, noting that the Japanese company accepted the U.S. government's desire to oversee the execution of the investment and proposed a golden share structure as a straightforward way to reflect it. The ultimate agreement with the U.S. government represents an unusual level of control conceded by the companies to save the deal, after a rocky path to approval spurred by high-level political opposition. "We struggled to complete this deal, but our global strategy is starting to take shape," Hashimoto said, adding that the company will consider further global expansion. The golden share gives the U.S. government a veto over a potential relocation of U.S. Steel's headquarters from Pittsburgh, a transfer of jobs overseas, a name change, and any potential future acquisition of a rival business. "We have spent 2 trillion yen ($14 billion) to acquire U.S. Steel ... We have no intention of relocating its headquarters or shifting production or jobs overseas," he said. The agreement inked with the administration also stipulates that Nippon Steel must make capital investments of about $11 billion in the United States by 2028. Hashimoto said he saw no issue with that requirement because the company intended to expand investments beyond its current plans. The Trump administration's policy shift towards imposing higher tariffs had increased the strategic importance of the U.S. Steel acquisition, he said. "This deal is not only a necessary and effective strategy to restore our company to the number one position globally, but also the only path for U.S. Steel to revitalize and grow,” Hashimoto told reporters. "Nippon Steel has limited track record operating a business of this scope," Jefferies analysts wrote in a client note earlier this week. The golden share "could narrow Nippon's flexibility as it is contemplating spending (5 trillion yen to 10 trillion yen) on decarbonisation." Activist investor Strategic Capital is proposing that executive remuneration should be clawed back if the company books impairments. Nippon Steel opposes the proposal. "I am concerned that Nippon Steel's final goal was to acquire U.S. Steel, not boosting returns to shareholders," said Tsuyoshi Maruki, CEO of Strategic Capital. Nippon Steel will consider a capital raising among other options as it weighs how to fund its U.S. investment plans, Vice Chairman Takahiro Mori, the lead negotiator of the deal, said. "The increased leverage from acquisition debt remains a clear credit negative," Roman Schorr, senior analyst at Moody's Ratings, said in a report. "However, this is counterbalanced by the strategic benefits of expanding into the U.S. market, which enjoys tariff protection. U.S. Steel brings a strong asset base following recent investments, complementing Nippon Steel's portfolio," Schorr said, adding the company's investments and cost control would be closely watched. The U.S. government's approach to the deal has been "a purely political and symbolic throwback," said Weston Nakamura, a markets analyst who publishes the Across the Spread newsletter. "I don't see it hindering any operations it hasn't already set out. But the one that might be of friction in the future is if Nippon (Steel) tries to acquire another U.S. steel maker," he added. Nippon Steel shares rose 2.5% in afternoon trading to 2,772 yen, outperforming the broader Nikkei 225 index (.N225) , opens new tab, which fell 0.9%. ($1 = 145.1700 yen) https://www.reuters.com/business/tariffs-boost-strategic-importance-us-steel-deal-nippon-steel-ceo-says-2025-06-19/
2025-06-19 06:40
LONDON, June 19 (Reuters) - Sterling slipped versus a stronger dollar on Thursday ahead of the Bank of England's policy decision, with no change to rates the widely expected outcome, while investor sentiment remained fragile given the flaring conflict in the Middle East. At 0618 GMT the pound was 0.24% lower at $1.339 and unchanged against the euro, which held at 85.515 pence. . Sign up here. The dollar strengthened after the Federal Reserve held rates steady as expected on Wednesday, and amid a surge in safe haven demand as a conflict in the Middle East continues and President Donald Trump weighs U.S. involvement. Traders are betting the BoE will follow suit in keeping rates steady on Thursday, even as the UK's economic growth is faltering and inflation cooled slightly in May. The chance of no change stands at 96% with a tiny chance of a 25 basis point rate cut. Attention will be on the voting, after last month's surprise three-way split among policymakers. A Reuters poll last week of 60 economists found that all of them expect the BoE to keep rates at 4.25% in June and almost all forecast a quarter-point rate cut in August. A jump in the price of oil during the ongoing Israel-Iran conflict presents another problem for the central bank to grapple with, as it could keep inflation higher. The pound has slipped more than 1% since last Thursday, but it remains 7% higher against the greenback in 2025, helped by a rush away from U.S. assets spurred by heightened trade uncertainty in light of Trump's tariffs. Also helping out is the fact that the UK is the only country to have struck a trade deal with the United States. Trump and British Prime Minister Keir Starmer finalised the deal at the G7 summit this week. https://www.reuters.com/world/uk/sterling-slips-ahead-bank-england-decision-middle-east-focus-2025-06-19/
2025-06-19 06:39
Russian economy on brink of recession, says minister Minister urges central bank to show economy some 'love' Putin has urged officials not to freeze Russia's economy Economy overheated during military-fuelled spending spree ST PETERSBURG, Russia, June 19 (Reuters) - Russia's economy is on the verge of sliding into recession and monetary policy decisions will now determine whether it falls into one or not, Economy Minister Maxim Reshetnikov warned on Thursday. Reshetnikov delivered the downbeat message at Russia's annual showcase economic forum in the northern Russian city of St Petersburg, an event sometimes called "the Russian Davos" which is meant to promote investment in the Russian economy. Sign up here. He urged the central bank to support the economy when it comes to monetary policy as the Kremlin said that the current key interest rate - of 20% - was putting a break on the economy even though that was a conscious decision. Russia this month cut interest rates for the first time since 2022, but borrowing costs remain close to record levels and for months businesses have complained of high rates stifling investment. The central bank has kept rates high to curb inflation in the overheated economy, which is focused on the needs of the military fighting in Ukraine. "According to the figures, there is cooling, but all our figures are in the rear-view mirror," Reshetnikov said on a panel at the St Petersburg International Economic Forum. "According to the current feelings of businesses and business indicators, we are already, it seems to me, on the verge of going into recession. On the verge." Reshetnikov clarified that a recession was not inevitable though and later told journalists that avoiding one would depend on policy decisions, above all on interest rates. "I didn't predict a recession. I said we're on the brink. From here on out, everything will depend on our decisions," he said. In addition to keeping faith in Russia's 4% inflation target, Reshetnikov said he was in favour of "giving the economy some love", addressing Central Bank Governor Elvira Nabiullina, who was on the same panel. President Vladimir Putin in March urged his economic officials not to freeze the Russian economy as if it were in a "cryotherapy chamber" with high borrowing costs and Reshetnikov has previously warned of "hypothermia" risks. For now, the outlook does not look promising. The Centre for Macroeconomic Analysis and Short-Term Forecasting, an economic think tank close to the government, said this week that most civilian sectors are in recession and there is no sign of what can kick-start economic growth. "It seems that an 'an economy of stagnation' has formed," the think tank analysts' wrote. At Thursday's session, central bank governor Nabiullina, said the current slowdown in GDP growth was "a way out of overheating". Finance Minister Anton Siluanov said there was cooling in Russia, but that "summer always follows a cold snap". Alexander Vedyakhin, First Deputy CEO of Russia's largest lender Sberbank (SBER.MM) , opens new tab said in an interview with Reuters this week that tight monetary policy was creating over-cooling risks and said much lower interest rates of 12-14% were needed to restart investment lending. https://www.reuters.com/markets/europe/russia-is-verge-going-into-recession-economy-minister-says-2025-06-19/
