2025-06-06 21:51
BOGOTA, June 6 (Reuters) - Colombian Finance Minister German Avila said on Friday that "paralyzing" the economy to comply with the country's fiscal rule is not an option and that the government will take steps, including increased borrowing, if needed to ensure growth. His remarks follow news that Colombia may temporarily suspend compliance with the fiscal rule governing government finances. Sign up here. "Paralyzing the state and the economy to comply with the fiscal rule is not the way forward," Avila told a banking conference in Cartagena. "It is possible we will make some adjustments in spending, we are examining them," Avila said, adding there will be adjustments to the country's debt and "surely we will not reach the limits established by the fiscal rule." Any decision to suspend the rule, created in 2011 to implement policy constraints that prevent the worsening of public finances, would roil markets, which are already deeply wary of President Gustavo Petro's economic management. The proposal will be discussed at a Monday meeting of the Superior Council for Fiscal Policy, which is charged with managing the country's budget, among other fiscal duties, Avila confirmed on Friday. https://www.reuters.com/world/americas/colombia-will-not-paralyze-economy-comply-with-fiscal-rule-says-minister-2025-06-06/
2025-06-06 21:35
Fed in wait-and-see mode with unemployment rate steady at 4.2% Financial markets bet Fed delivers two interest rate cuts in 2025 Trump urges Fed to cut rates by a full percentage point Fed's Harker tells CNBC jobs report solid: 'I was pleased with it' June 6 (Reuters) - Federal Reserve policymakers have already signaled they are in no rush to cut interest rates, and a government report on Friday showing the labor market is far from crumbling amid big trade policy changes only cements that stance. The Labor Department's monthly employment report showed the unemployment rate held steady at 4.2% last month. Employers added 139,000 jobs, which combined with downward revisions to prior months' estimates showed a cooling in labor demand but nothing abrupt; by comparison, job gains averaged 160,000 last year. Sign up here. U.S. President Donald Trump ratcheted up his calls for rate cuts. "Go for a full point, Rocket Fuel," Trump said in a post on Truth Social that urged the Fed to lower rates by 100 basis points. The president added that the Fed could simply increase rates again if inflation reignited. But the latest job growth reading is already giving Fed policymakers more comfort about holding the U.S. central bank's policy rate steady as they watch to see how higher import tariffs affect the economy. It “was a solid report and I was pleased with it,” Philadelphia Fed President Patrick Harker told CNBC, adding that now was the time for the Fed to hold policy steady. Fed officials have telegraphed that they intend to do just that at their June 17-18 policy meeting. Financial markets have been betting the Fed will wait until September to cut rates and will deliver a second reduction in borrowing costs by December; after the jobs report they trimmed their bets on a possible third rate cut by the end of this year. "Continued strength in the jobs number provides further support for the Fed's patience," said Scott Helfstein, Global X's head of investment strategy. "The Fed is likely to remain on hold through the end of summer to see how tariff negotiations proceed and ensure prices are stabilizing." Analysts said they expect more softening ahead in the labor market as higher import levies and government policy uncertainty strain economic growth. Job gains in May were concentrated in a narrowing range of industries, including healthcare, and manufacturing lost jobs in its worst showing since January, the employment report showed. The workforce shrank by the most in 17 months. Fed policymakers, however, have signaled they are disinclined to act preemptively to cushion any emerging weakness in jobs, especially with higher tariffs seen likely to also push up prices and potentially reignite inflationary pressures. The takeaway on the labor market for the Fed, said Krishna Guha, vice chairman of Evercore ISI, is that, "given the lack of any serious cracks to date, the risk of waiting several more months to learn more with policy in a modestly restrictive posture looks low." https://www.reuters.com/business/fed-seen-no-rush-cut-rates-us-job-market-cools-doesnt-crumble-2025-06-06/
2025-06-06 21:27
WASHINGTON, June 6 (Reuters) - The U.S. Interior Department approved a plan by Signal Peak Energy to expand coal mining, providing exports for Japan and South Korea, the agency said on Friday, as it responded to President Donald Trump's energy-emergency directives. The approval authorizes the Montana-based coal company to recover 22.8 million metric tons of federal coal and 34.5 million tons of adjacent non-federal coal and extend the life of the Bull Mountains mine by nine years. Sign up here. Interior Secretary Doug Burgum, who is also co-chair of Trump's Energy Dominance Council, said unlocking more federal coal enables the U.S. to bolster ties with allies abroad. "President Trump’s leadership in declaring a national energy emergency is allowing us to act decisively, cut bureaucratic delays and secure America's future through energy independence and strategic exports," he said. On January 20, Trump declared an energy emergency to speed permitting, roll back environmental protections and withdraw the U.S. from an international pact to fight climate change. Signal Peak had initially sent its plan to expand its mining operations to the Office of Surface Mining Reclamation and Enforcement in 2020, but it has been under federal review and subject to litigation since then. The Interior Department completed the environmental impact statement for the mine expansion according to its new policy to speed such reviews to a maximum of 28 days. Burgum this week joined Energy Secretary Chris Wright and Environmental Protection Agency Administrator Lee Zeldin in Alaska to promote an LNG project, as well as other energy exports destined for Asian markets. The Bull Mountains mine in Montana, located in Musselshell and Yellowstone counties, employs over 250 workers and primarily supplies Japan and South Korea. Environmental groups have tried to block the expansion of the mine over concerns about its water use and greenhouse gas emissions. “It’s utter hogwash that we have to sacrifice the climate, water resources, wildlife and area ranching operations in order to send coal overseas to be burned by foreign countries,” Anne Hedges, executive director of the Montana Environmental Information Center, said in a statement. https://www.reuters.com/sustainability/trump-administration-approves-coal-mine-expansion-boost-asia-exports-2025-06-06/
2025-06-06 21:24
June 6 (Reuters) - Missouri authorities are investigating a fake press release about the damaging livestock pest New World screwworm that sparked a selloff in U.S. cattle futures markets last week, the state's agriculture department said on Friday. U.S. agriculture officials and farmers are on high alert for screwworm as it has moved north in Mexico from Central America, arriving within about 700 miles (1,125 km) of the Texas border. Sign up here. The U.S. Department of Agriculture indefinitely halted U.S. cattle imports from Mexico last month in a bid to keep out the parasite, which eats livestock and other wild animals alive. Screwworm infestations can kill cattle if left untreated and make them susceptible to secondary infections. On May 27, a false press release , opens new tab was sent to a northwest Missouri radio station about screwworm, the Missouri Department of Agriculture said. A report on the radio station's website pressured Chicago Mercantile Exchange cattle futures before being taken offline, livestock traders said. Live cattle futures fell nearly 2% before paring losses, as daily trading volumes in the market spiked 77% from a week earlier. The Missouri State Highway Patrol's Rural Crimes Investigative Unit, the Livestock and Farm Protection Task Force, and state attorney general are investigating the matter, Missouri's agriculture department said in a press release. State officials want to determine "if this was an act with malicious intent to cause panic in agricultural markets," the department added. U.S. cattle producers' group R-CALF USA last week asked , opens new tab the Commodity Futures Trading Commission, which regulates futures markets, to investigate. The commission did not immediately respond to a request for comment, and exchange operator CME Group (CME.O) , opens new tab declined to comment. https://www.reuters.com/world/us/missouri-probes-false-report-about-screwworm-pest-that-hurt-us-cattle-prices-2025-06-06/
2025-06-06 20:40
June 6 (Reuters) - U.S. energy firms this week cut the number of oil and natural gas rigs operating for a sixth week in a row for the first time since September 2023, energy services firm Baker Hughes (BKR.O) , opens new tab said in its closely followed report on Friday. The oil and gas rig count, an early indicator of future output, fell by four to 559 in the week to June 6, the lowest since November 2021. , , Sign up here. Oil rigs fell by nine to 442 this week, while gas rigs rose by five to 114, Baker Hughes said. It said it has corrected oil and gas classifications for approximately eight to 10 rigs in the Marcellus and Utica basins, since April 4. Total reported rig counts for all historical periods remain unchanged. Total rig counts in the Permian in West Texas and eastern New Mexico, the Eagle Ford in South Texas and in the state of Texas all fell this week to their lowest levels since November 2021. In Utah, meanwhile, the rig count fell this week to its lowest since February 2022. The oil and gas rig count declined by about 5% in 2024 and 20% in 2023 as lower U.S. oil and gas prices over the past couple of years prompted energy firms to focus more on boosting shareholder returns and paying down debt rather than increasing output. The independent exploration and production (E&P) companies tracked by U.S. financial services firm TD Cowen said they planned to cut capital expenditures by around 3% in 2025 from levels seen in 2024. That compares with roughly flat year-over-year spending in 2024, and increases of 27% in 2023, 40% in 2022 and 4% in 2021. Even though analysts forecast U.S. spot crude prices would decline for a third year in a row in 2025, the U.S. Energy Information Administration (EIA) projected crude output would rise from a record 13.2 million barrels per day (bpd) in 2024 to around 13.4 million bpd in 2025. On the gas side, the EIA projected an 88% increase in spot gas prices in 2025 would prompt producers to boost drilling activity this year after a 14% price drop in 2024 caused several energy firms to cut output for the first time since the COVID-19 pandemic reduced demand for the fuel in 2020. The EIA projected gas output would rise to 104.9 billion cubic feet per day (bcfd) in 2025, up from 103.2 bcfd in 2024 and a record 103.6 bcfd in 2023. https://www.reuters.com/business/energy/us-oilgas-rig-count-falls-6th-week-2021-lows-baker-hughes-says-2025-06-06/
2025-06-06 20:33
ORLANDO, Florida, June 6 (Reuters) - For all that the uncertainty around Washington's global tariff war and worrisome U.S. fiscal outlook continue to unnerve investors, not to mention the Trump-Musk public mud-slinging circus, world markets just closed out a quietly impressive week. Broad U.S., Asian, European and emerging market equity benchmarks all rose, pushing the MSCI World index to a fresh record high, while the dollar, Treasury yields and gold generally held steady over the week. Sign up here. Of course, these broad sweeps mask some notable price moves in certain assets, such as Tesla's 14% share price crash on Thursday, Treasury yields spiking up to 15 basis points on Friday after the latest nonfarm payrolls data, or the dollar sliding to within touching distance of a new three-year low on Thursday. Investors appear to be in a forgiving mood, willing to trust that policymakers will dial down global trade tensions, slow the U.S. fiscal train as it approaches the cliff edge, and steer the world economy through these choppy waters with minimum damage. Investors faced several key monetary policy crosswinds this week. The Bank of Canada stood pat and the European Central Bank cut rates by a quarter of a percentage point, but their guidance was seen as relatively hawkish. The Canadian dollar and euro both strengthened. On the other hand, Switzerland's slide into deflation ups the ante on the Swiss National Bank and traders are betting on a return to negative interest rates by the end of the year. Meanwhile, the Reserve Bank of India on Friday cut rates by more than expected. Fed officials mostly continue to hold the line that uncertainty around tariffs and their impact on growth and inflation is so high that the central bank is firmly in the 'wait and see' camp. If the Fed is to resume its easing cycle, it won't be until October, according to rates futures market pricing. With global central banks perhaps entering a summer pause, focus will intensify on the Trump administration's trade deal negotiations with major trading partners like China and Europe ahead of July 9, when Washington's pause on reciprocal tariffs expires. U.S. President Donald Trump indicated that his 90-minute telephone call with China's Xi Jinping on Thursday was friendly, and there were lots of smiles in his meeting later that day in the Oval Office with German Chancellor Friedrich Merz. But ultimately, the call with Xi yielded nothing concrete, although U.S.-China talks will take place in London next week. And it is through the 27-nation European Union that any deal with Germany will be reached, not bilaterally. There are so many moving parts on Washington's tariff board, including but not restricted to: sector tariffs, reciprocal tariffs, bilateral negotiations with dozens of countries, and court rulings and counter rulings. It's a little surprising, perhaps, that investors' glass is half full. I'd love to hear from you, so please reach out to me with comments at [email protected] , opens new tab. You can also follow me at @ReutersJamie and @reutersjamie.bsky.social. This Week's Key Market Moves Chart of the Week Again, two charts for you this week, both on tariffs. The first shows how much tariff-related turmoil the S&P 500 has navigated since Trump was sworn in. In many ways, it's remarkable that the index is up on the year. The second is based on a New York Fed survey published this week showing how U.S. firms are passing on price increases to customers. Most strikingly, almost half of services companies are passing on 100% of the tariffs. Here are some of the best things I read this week: What could move markets on Monday? 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. Trading Day is also sent by email every weekday morning. Think your friend or colleague should know about us? Forward this newsletter to them. They can also sign up here. https://www.reuters.com/business/autos-transportation/global-markets-trading-day-2025-06-06/
