2025-06-04 06:52
MUMBAI, June 4 (Reuters) - The Indian rupee slipped on Thursday as a combination of bullish position unwinding and dollar strength pushed the local currency to near the 86 level against the U.S. dollar. The rupee slipped to 85.9125 against the U.S. dollar before paring losses to an extent. It was last quoted at 85.85, down 0.3% on the day. Sign up here. The currency is now on track for its sixth decline in seven sessions, having hit 84.78 last Monday. "The market is backing off earlier long rupee bets," said a currency trader at a bank. "You can see that in the price action. Its not helping that the dollar overall has found a bit of footing and we are seeing equity outflows.” Foreign investors pulled out more than $300 million from domestic equities on Wednesday, according to preliminary data, adding to outflows of more than $1 billion in the previous three sessions. Meanwhile, the dollar index inched higher, extending Tuesday’s advance that was underpinned by an unexpected rise in U.S. job openings. More labour market data is due through the week, with the key highlight being Friday’s non-farm payrolls report for May — a key input for assessing the Federal Reserve’s interest rate path. Asian currencies were mostly weaker, with sentiment dominated by developments around trade negotiations between the U.S. and its partners. The Trump administration has set a Wednesday deadline for countries to submit their best trade offers. President Donald Trump is expected to speak with Chinese President Xi Jinping this week, according to the White House. The call comes amid renewed tensions, with both sides accusing each other of breaching last month’s agreement to roll back certain tariffs. https://www.reuters.com/world/india/rupee-falters-bullish-exits-dollar-strength-collide-2025-06-04/
2025-06-04 06:52
US gasoline, distillate stocks post big weekly builds OPEC+ supply rises weigh on sentiment Persistent tariff tensions stalk market HOUSTON, June 4 (Reuters) - Oil prices settled down just over 1% on Wednesday after U.S. data showed surprisingly large build in gasoline and diesel inventories, swelling fuel supplies with OPEC+ planning more output and trade tensions clouding the energy demand outlook. Brent crude futures closed down 77 cents, or 1.2%, at $64.86 a barrel. U.S. West Texas Intermediate crude settled 56 cents, or 0.9% lower at $62.85. Sign up here. U.S. gasoline stocks swelled by 5.2 million barrels, the Energy Information Administration said. Analysts polled by Reuters had expected a rise of 600,000 barrels. Distillate stockpiles rose by 4.2 million barrels compared with expectations for a rise of 1 million barrels. Crude inventories dropped by 4.3 million barrels. Analysts polled by Reuters had expected a draw of 1 million barrels. "The report is in my view bearish, due to large builds in refined products," Giovanni Staunovo, an analyst with UBS. "There was a strong increase in refinery demand for crude, resulting in a large crude draw. But post-Memorial Day, the strong supply increase with weaker implied demand resulted in large refined product inventory increases," he added. Plans by OPEC+ producers to increase output by 411,000 barrels per day (bpd) in July were also weighing on investors. On Tuesday, both benchmarks climbed about 2% to a two-week high, driven by worries about supply disruptions and expectations that OPEC member Iran would reject a U.S. nuclear deal proposal key to easing sanctions. Russia posted a 35% decline in May oil and gas revenue, which could make Moscow more resistant to further OPEC+ output hikes, as such moves weigh on crude prices. On Tuesday, the Organisation for Economic Co-operation and Development (OECD) cut its global growth forecast as the fallout from Trump's trade policies takes a bigger toll on the U.S. economy, which would in turn impact oil demand. Meanwhile, U.S. President Donald Trump and Chinese leader Xi Jinping are likely to speak this week, days after Trump accused China of violating a deal to roll back tariffs and trade curbs. U.S. economic activity has declined and higher tariff rates have put upward pressure on costs and prices in the weeks since Federal Reserve policymakers last met to set interest rates, the central bank said in its latest snapshot of the economy. Geopolitical tensions continued to escalate. Russian President Vladimir Putin told Trump that he must respond to high-profile Ukrainian drone attacks on Russia's nuclear-capable bomber fleet and a deadly bridge bombing that Moscow blamed on Kyiv. "Overall, we see limited upside potential amid ongoing concerns about a supply glut and softening demand growth," analyst Ole Hansen at Saxo Bank said in a note. Meanwhile, production operations in Canada, some of which was shut-in due to wildfires, were restarting on Wednesday. Canadian Natural Resources (CNQ.TO) , opens new tab said it has restarted its Jackfish 1 oil sands site in northern Alberta after determining wildfires in the region were a safe distance away. Wildfires in Canada had reduced the country's output by some 344,000 bpd, according to Reuters calculations on Tuesday. https://www.reuters.com/business/energy/oil-prices-slip-rising-opec-output-tariff-fears-weigh-outlook-2025-06-04/
2025-06-04 06:51
June 4 (Reuters) - The crew of a cargo ship carrying around 3,000 vehicles, including 800 electric vehicles, abandoned it off the coast of Alaska after a fire broke out onboard, its operator Zodiac Maritime said on Wednesday. The 22 crew members were safely evacuated from the ship after they failed to put out the fire, Zodiac said as it focuses on salvaging the vessel. Sign up here. They were evacuated via lifeboat and were being transferred to a nearby merchant vessel in tandem with the U.S. Coast Guard. The vessel, Morning Midas, was located 300 miles (482.8 km) southwest of Adak in Alaska, the Coast Guard said on its X account. The Liberia-flagged ship left China's Yantai port on May 26 and was on the way to Lazaro Cardenas, Mexico, according to LSEG data. Smoke was initially seen rising from a deck loaded with EVs, the company said. It is not clear what brand of vehicles the ship was carrying. EV-related fires on ships are challenging to extinguish due to the heat generated and risk of reignition, which could persist for days. The Coast Guard said aircrew and a cutter ship have been sent to assist with the situation and three vessels were already on the scene. In 2022, a ship carrying 4,000 luxury cars, including Porsches and Bentleys, sank off the Portuguese Azores archipelago nearly two weeks after it caught fire. Fires onboard vessels, particularly on container ships, car carriers and roll-on/roll-off ships are a big concern for insurers. Steamship Mutual, one of the insurers of Morning Midas, did not respond to a Reuters request for comment. Such incidents across all vessel segments hit the highest level in a decade in 2024, according to insurer Allianz Commercial. "The reality is the risk remains significant due to the size of these ships and the complexities involved in firefighting and salvage," Allianz said in its 2025 safety and shipping review report. https://www.reuters.com/world/us-coast-guard-responding-cargo-ship-fire-near-alaska-no-injuries-reported-2025-06-04/
2025-06-04 06:40
June 4 (Reuters) - Barclays raised its year-end price target for the S&P 500 (.SPX) , opens new tab index to 6,050 from 5,900 on Wednesday, citing easing trade uncertainty and expectations of normalized earnings growth in 2026. This follows forecast increases by Goldman Sachs and UBS Global Wealth Management in May, and a similar move by RBC Capital Markets and Deutsche Bank this week. Sign up here. The new target is an upside of about 1.32% to the index's last close of 5,970.37 points. In May, the S&P 500 logged its best monthly performance since November 2023, rising 6.2%, after U.S. President Donald Trump moderated his stance on tariffs, robust corporate earnings, and data showing inflation cooling which helped markets bounce back from April's downturn. The British brokerage also introduced its 2026 earnings per share forecast at $285 and 2026 year-end target of 6,700 for the benchmark index. "After tariff headwinds are absorbed throughout the remaining quarters of FY25, we expect that 2026 will return to a more normalized pace of earnings growth," Barclays strategists led by Venu Krishna said in a note. Tariffs next year are expected to have no additional direct impact compared to this year, though secondary effects on growth and inflation may extend into 2026, the brokerage added. Barclays maintained its 2025 earnings per share forecast at $262, despite ongoing tariff pressures. https://www.reuters.com/business/barclays-lifts-sp-500-year-end-target-6050-2025-06-04/
2025-06-04 06:39
2024/25 organic operating profit -30.5% vs forecast -31.7% 2025/26 profit could fall by high-teens percentage in worst case Joins rivals in scrapping longer term targets PARIS/LONDON, June 4 (Reuters) - French spirits group Remy Cointreau (RCOP.PA) , opens new tab on Wednesday abandoned its 2030 sales growth ambitions, saying tariffs, persistently slow U.S. sales and high levels of uncertainty could derail its plans for this financial year and beyond. The maker of Remy Martin cognac and Cointreau liqueur, which has been grappling with tariffs and sliding sales in its key U.S. and Chinese markets, also reported a smaller than expected 30.5% drop in annual organic operating profit. Sign up here. In a statement, Remy said its 2030 goals were no longer realistic amid uncertainty, a lack of recovery in sluggish U.S. sales and tariffs affecting its cognac in both China and the United States, which could reduce its 2025/26 operating profit by a high-teens percentage in a "worst-case scenario". "Remy Cointreau believes the conditions required to maintain its 2029-2030 targets are no longer in place," it said. Incoming CEO, luxury goods veteran Franck Marilly, would establish his own strategic roadmap, the company continued. Its shares fell almost 3% in early trade. Remy joins peers Diageo (DGE.L) , opens new tab and Pernod Ricard (PERP.PA) , opens new tab in withdrawing sales targets that had become widely seen as overly ambitious as the entire sector endures a sharp slowdown from previous boom years for pricey liquors. But the French company, which makes 70% of its sales from cognac, mostly in the U.S. and China, has suffered more than peers as drinkers in both nations ditch the brandy and both governments have levied tariffs. The withdrawal of targets should come as no surprise, but the extent of the tariff hit outlined by Remy had not been baked in by the market, Jefferies analyst Edward Mundy said. Remy said potential increases in duties could deal a 65 million euro ($74 million) blow to operating profit after mitigation measures. As things currently stand, it expects organic growth in operating profit in the year ended March 2026. Sales would also return to mid-single digit growth this financial year, but in large part thanks to an easier base of comparison versus steep declines in 2024/25, it forecast. Group operating profit for the year ended March 2025 fell 30.5%, versus a 31.7% drop expected by analysts. This was partially offset by 85 million euros of cost cuts. ($1 = 0.8794 euros) https://www.reuters.com/world/china/remy-cointreau-withdraws-its-mid-term-goals-posts-lower-annual-profits-2025-06-04/
2025-06-04 06:20
Parts of wheat belt in Shaanxi, Henan hit hard by hot, dry weather Some farmers report harvest at half usual levels Farmers with irrigation systems say yields steady Impact of drought on Chinese wheat imports not yet clear XIANYANG, China, June 4 (Reuters) - About an hour by road northwest of the famed Terracotta Warriors, combine harvesters send out clouds of dust as they work their way through the parched wheat fields of Maqiao village in China's northwestern Shaanxi province. But local farmers like Zhou Yaping say there is little to celebrate. Sign up here. Some of her crop is still tinged with green in a sign it hasn't fully ripened, and she expects she'll get only half the 1,000 kg of wheat her two-thirds of an acre plot usually yields. "I've been growing wheat for over 20 years, and I've never seen a drought this bad," said Zhou, 50, during a late May visit. Parts of China's wheat belt in Shaanxi and Henan provinces have been hit hard by hot, dry weather, with the sun baking the soil into cracked slabs and scorching the wheat before it could ripen. Last month, Shaanxi recorded its highest average temperatures since records began in 1961. While official figures are still some six weeks away, more than a dozen farmers in the area and those they hire to harvest the crop told Reuters of losses and small harvests, down as much as half for some. In some parts of the province, the drought was so bad farmers brought the harvest forward by a week. And while rain finally arrived in recent days, bringing some relief, it has also threatened to disrupt the harvest for those who waited. It is too early to know whether the drought could prompt China to import more wheat, although that would be good news for growers in places including Australia, which expects high end-of-season wheat stocks, partly due to a drop in Chinese imports. Ample wheat stocks and tepid demand have also curbed China's import appetite, traders said. "The drought has had a significant impact on wheat yields in areas with poor irrigation infrastructure, but the overall reduction in output is not expected to be substantial," Rosa Wang at Shanghai agro-consultancy JCI told Reuters. As of May 30, about 60% of the wheat crop in Henan and more than 20% in Shaanxi had been harvested, according to state news agency Xinhua. Conditions vary across the vast agricultural belt. In Henan province, often called China's granary, a farmer surnamed Ma who runs a 50-acre (20.23 hectares) farm in Xinxiang said his output held steady because of irrigation. But damage was clear elsewhere in the province. In Zhumadian, another farmer, named Zhang, said he harvested 1.65 acres of wheat on May 23, more than a week earlier than usual due to the heat. Zhang, who spoke over the phone, said his yield was down 40%, similar to 2023 when floods led to sprouting and blight. "After covering the costs of seeds, harvesting, and ploughing, we just break even with little to no profit," he said. Ma and Zhang declined to share their full names for reasons of privacy. https://www.reuters.com/business/environment/drought-bakes-chinas-wheat-belt-slashing-harvests-some-2025-06-04/
