2025-06-13 12:50
LONDON, June 13 (Reuters) - A look at what matters in U.S. and global markets today from Mike Dolan , opens new tab, Editor-At-Large, Finance and Markets Global equity markets were rattled on Friday and oil prices shot higher after Israel conducted a on Iran, pushing investors toward safe havens such as gold and the Swiss franc. Investors have typically shrugged off Middle East tensions in recent years, but this latest move has the potential to be a game changer in the region. I'll provide a quick overview of the market reactions below and then provide some weekend reading suggestions from Mike Dolan. Sign up here. I'm also excited to announce the launch of Reuters Open Interest (ROI), , opens new tab your essential new source for data-driven global financial commentary. Follow ROI on LinkedIn , opens new tab and X. , opens new tab Today's Market Minute * On Friday, after two decades of continually raising the alarm and urging other world leaders to act, Israel's Prime Minister Benjamin Netanyahu finally decided to go it alone, authorising an Israeli air assault aimed, Israel says, at preventing Iran from obtaining weapons of mass destruction. * World stock markets tumbled on Friday and oil prices surged as Israel launched its strikes, sparking a rush into safe havens such as gold, the dollar and Swiss franc. * Rescuers searched for missing people and aircraft debris in charred buildings in Ahmedabad on Friday after more than 240 people were killed in an Air India Boeing 787 crash, and as local media reported that India was considering grounding the airline's 787 fleet for safety checks. * Israel’s strikes on Iran have raised the prospect of global oil prices hitting $100 a barrel. If Tehran seeks to escalate the conflict by retaliating beyond Israeli borders, it could seek to choke off the Strait of Hormuz, the world’s most important gateway for oil shipping, writes ROI Energy Columnist Ron Bousso. * At the Federal Open Market Committee meeting next week, investors will scrutinize all communications for any sign that the recent softening in U.S. inflation could be enough to nudge policymakers closer to cutting interest rates. Read the latest from ROI Markets Columnist Jamie McGeever. ISRAELI STRIKE HITS CRUDE MARKET Israel launched widescale strikes against Iran on Friday, saying it targeted nuclear facilities, ballistic missile factories and military commanders during the start of a prolonged operation to prevent Tehran from building an atomic weapon. Alongside extensive air strikes, Israel's Mossad spy agency led a series of covert sabotage operations inside Iran, Axios reported, citing a senior Israeli official. These operations were aimed at damaging Iran’s strategic missile sites and its air defence capabilities. Iran launched about 100 drones towards Israeli territory in retaliation, many of which have already been intercepted, according to an Israeli military official. Iran denied it had launched drones, the Fars news agency said. U.S. Secretary of State Marco Rubio called the Israeli offensive a "unilateral action" and said that Washington was not involved. Market reaction was swift. Crude prices jumped on Friday, amid fears that Israel's strike could spark additional Iranian retaliation that could disrupt oil supplies. Brent crude futures hit an intraday high of $78.50 per barrel, the highest since January 27, before settling back down around $74. Meanwhile, U.S. West Texas Intermediate crude reached a high of $77.62, its highest level since January 21, before settling back above $73 a barrel. A key investor concern now will be whether the latest developments will cause Iran to disrupt transit in the Strait of Hormuz. of the world's total oil consumption passes through the strait, or some 18 to 19 million barrels per day (bpd) of oil, condensate and fuel. As geopolitical tensions rose, Gold climbed as high as $3,444.06 per ounce, bringing it close to the record high of $3,500.05 from April. "Traders are now on edge over the prospects of a full-blown Middle East conflict," said Matt Simpson, a senior market analyst at City Index. "That will keep uncertainty high and volatility elevated." WEEKEND READING SUGGESTIONS Here are some articles away from the day-to-day headlines that you may find interesting. 1. FED FOOTNOTE: Speculation about President Trump's willingness and ability to remove Federal Reserve Chair Jerome Powell has stoked concerns about Fed independence all year, though a recent Supreme Court ruling seemed to clear up the issue. But writing on the Project Syndicate site, Professor Barry Eichengreen argues that the footnote in the court ruling that supposedly protects the Fed came with no legal basis. "The note reads like a ChatGPT hallucination , opens new tab," he wrote, adding "arbitrarily exempting the Fed opens the door to arbitrarily not exempting the Fed." Advocates of Fed independence should be worried, he concluded. 2. G6 RUSSIAN SANCTIONS: Most G7 countries look set to tighten sanctions on Russia and push for a lower Russian oil price cap at next week's summit in Canada regardless of U.S. objections, according to Reuters' sources. Earlier this month, Brookings economists Robin Brooks and Ben Harris published a detailed analysis of why this approach was workable and makes sense , opens new tab. 3. SELF DRIVERS: Reuters' Norihiko Shirouzu shows how BYD shook up China’s smart-EV industry earlier this year by offering its "God's Eye" driver-assistance package for free, undercutting Tesla's more expensive technology. 4. SPIES AND CRYPTO: At a time when Europe is in a heightened state of alarm over Russia's "hybrid war" of sabotage and espionage, Reuters found that Moscow is increasingly recruiting teenagers and complete novices in its efforts. A Special Report by Reuters' Mari Saito, Anna Koper, Anton Zverev, Filipp Lebedev and Polina Nikolskaya details the case of Canadian teenager Laken Pavan. 5. COAL AND WATER: April marks the start of the cruelest months for residents of Solapur, a hot and dry district in western India. In peak summer, the wait for water taps to flow can stretch to a week or more. Reuters Krishna N. Das and Sarita Chaganti Singh show that since 2017 a new 1,320-megawatt coal-fired power plant run by state-controlled NTPC has started to compete with residents and businesses for water from the same reservoir. Chart of the day Friday's gains for Brent crude and WTI futures were the largest intraday moves for both contracts since 2022, when Russia's invasion of Ukraine caused a spike in energy prices. "A key question is whether the Iranian retaliation will be limited to Israel or if the leadership will seek to internationalize the cost of tonight's action by targeting bases and critical economic infrastructure across the wider region," RBC Capital analyst Helima Croft said in a note. TODAY'S EVENTS TO WATCH * University of Michigan June consumer survey (10:00 AM EDT); Canada April manufacturing sales * European Central Bank board member Frank Elderson speaks at IMF-WB annual conference for senior supervisors Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles , opens new tab, is committed to integrity, independence, and freedom from bias. https://www.reuters.com/business/finance/global-markets-view-usa-2025-06-13/
2025-06-13 12:45
NEW DELHI, June 13 (Reuters) - Air India and the Indian government are looking at several aspects of the Boeing 787-8 crash in Ahmedabad, including issues with the jet's engine thrust, its flaps, and why its landing gear remained open, a source with direct knowledge told Reuters on Friday. The government is also looking at whether Air India was at fault, including over maintenance issues, the source said. Sign up here. More than 240 people were killed in the crash on Thursday. https://www.reuters.com/world/india/air-india-government-probing-engine-thrust-flaps-landing-gear-after-crash-source-2025-06-13/
2025-06-13 12:43
SAO PAULO, June 13 (Reuters) - Brazilian fintech Meliuz (CASH3.SA) , opens new tab raised 180.08 million reais ($32.39 million) in a follow-on share offering aimed at obtaining funds to purchase bitcoin, it said in a securities filing on Friday. Meliuz said that the offering, which had investment bank BTG Pactual as bookrunner, was priced at 7.06 reais per share, a 5% discount over its Thursday closing price. Sign up here. Meliuz's move to buy more bitcoin came as the company earlier this year launched a new strategy allowing it to allocate cash reserves in the cryptocurrency, labeling itself "the first bitcoin treasury company" in Brazil. ($1 = 5.5594 reais) https://www.reuters.com/world/americas/brazils-meliuz-raises-324-million-share-offering-buy-bitcoin-2025-06-13/
2025-06-13 12:22
MADRID, June 13 (Reuters) - Energy companies Iberdrola (IBE.MC) , opens new tab and Endesa (ELE.MC) , opens new tab have proposed a review of Spain's nuclear phase-out calendar, an Energy Ministry spokesperson said on Friday, after a major outage in April reignited debate over nuclear power. Spain has a plan to close all of its nuclear reactors by 2035 and some were offline on April 28, when the blackout took out power and telecommunications across the Iberian Peninsula. The causes of the outage are still being investigated. Sign up here. The proposal was not endorsed by all the companies with stakes in Spain's nuclear fleet. Naturgy (NTGY.MC) , opens new tab and EDP (EDP.LS) , opens new tab did not sign it, the spokesperson told Reuters. The proposal ties the extension to a revision of the fiscal framework for nuclear energy - the industry has repeatedly urged policymakers to lower taxes, which they blame for hindering the plants' ability to compete on the market. As such, it isn't in line with the conditions set by Spanish Prime Minister Pedro Sanchez to open a discussion over the review, namely that it guarantees security of supply, safety and that it doesn't weigh on taxpayers, the spokesperson said. Under the existing plan, the phase-out will start in 2027 with the closure of the first reactor at the Almaraz plant in western Spain, with the plant's second reactor to shut down the following year. The energy companies' proposal would extend the lifespan of the Almaraz plant to 2030, the Energy Ministry spokesperson said. Iberdrola didn't immediately reply to a request for comment while Endesa, controlled by Italian energy giant Enel (ENEI.MI) , opens new tab, declined to comment. A Naturgy spokesperson declined to comment but pointed to previous statements by Executive Chairman and CEO Francisco Reynes, who supported a review of the calendar and an extension of the operation of the Almaraz reactors. "We are not aware of any letter," an EDP spokesperson said. EDP Chief Executive Miguel Stilwell d'Andrade said in an interview in April that, when it comes to nuclear, Spain's climate and energy plan should be followed. The plan includes a phase out by 2035. https://www.reuters.com/business/energy/iberdrola-endesa-propose-review-spains-nuclear-phase-out-calendar-2025-06-13/
2025-06-13 12:11
SHANGHAI, June 13 (Reuters) - Solar manufacturing company heads in China, grappling with losses and tariffs on exports to the U.S., called for an end to a price war and a solution to overcapacity in the sector, but industry participants predict a slow turnaround. China's solar manufacturers have reported losses this year as U.S. President Donald Trump'strade war put further pressure on demand within the industry. Sign up here. Losses in the photovoltaic manufacturing value chain reached $40 billion last year, while for the industry as a whole - including firms' other business lines - totalled $60 billion, Trina Solar (688599.SS) , opens new tab Chairman Gao Jifan said. The Chinese government and industry were working to address the overcapacity and breakneck competition that have pushed most major producers into the red, Gao told the SNEC PV+ Photovoltaic Power Conference and Exhibition in Shanghai this week. The National Development and Reform Commission (NDRC), China's state planner, held an online meeting in February calling for a ban on new production, Gao said, but new capacity has nevertheless been built in recent months. NDRC did not immediately respond to a faxed question on the matter. Zhu Gongshan, chairman of polysilicon and module producer GCL, called for a "clear out" of the sector through mergers and a paring back of production capacity. China was also moving away from reliance on a single market, Zhu said, referring to growth in new markets outside China in response to tariffs and other trade barriers. Chinese manufacturers have been rapidly expanding in the Middle East, and a module-producing firm said demand is set to grow in eastern Europe and South Asia. Solar manufacturing makes up less than two-thirds of Trina's business now and will fall to 50% or less in the next two to three years, Gao said, with a greater focus on product solutions and energy storage. Several experts told Reuters during this week's industry event that there is no hope for recovery in solar component prices this year. One procurement manager at a module producer in eastern China said two or three large factories would have to stop production for supply and demand to rebalance and support prices, unlikely in the near future. "The overcapacity issue is so deep one cannot see to the bottom," another module producer, using a Chinese proverb. https://www.reuters.com/sustainability/climate-energy/china-solar-industry-address-overcapacity-challenge-turnaround-far-off-experts-2025-06-13/
2025-06-13 12:08
JAKARTA, June 13 (Reuters) - Indonesia aims to seal a free trade agreement with the European Union in 2026, Indonesian trade ministry official Djatmiko Bris Witjaksono said on Friday, after the two sides completed their latest round of negotiations. Indonesia and the EU have been in discussions on the agreement for about nine years, and are aiming to sign and ratify it by next year, Djatmiko told reporters, adding it could come into effect by late 2026 or early 2027. Sign up here. The EU has committed to provide market access to priority Indonesian products such as palm oil, textiles, footwear and seafood, Djatmiko said. Indonesia and the EU have previously clashed on tougher EU trade rules for products with potential links to deforestation, which could have an impact on shipments of Indonesian palm oil. In turn, Indonesia has also pledged to increase market access for agricultural and manufactured goods from the EU, Djatmiko said. EU ambassador to Indonesia Denis Chaibi said negotiations are ongoing and "substance will determine timing." The main benefits of the free trade deal for Indonesia include increased foreign direct investment from the EU in sectors like renewables, semiconductors, and mineral derivatives, a presentation slide presented by Djatmiko showed. The deal could increase exports by 5.4%, according to an internal benefit analysis, but senior economic minister Airlangga Hartarto said this was a conservative estimate and he targets a 50% increase in three years. In 2024, the EU invested $1.1 billion in Indonesia, a drop of more than 50% from the previous year. Indonesia's exports to the EU last year were worth $17.3 billion, while imports from the EU were worth $12.8 billion, Indonesian government data showed. https://www.reuters.com/markets/commodities/indonesia-aims-seal-eu-free-trade-agreement-2026-official-says-2025-06-13/
