2025-05-21 04:55

May 21 (Reuters) - International Monetary Fund First Deputy Managing Director Gita Gopinath said U.S. fiscal deficits are too large and the country needs to tackle its "ever-increasing" debt burden, according to an interview published by the Financial Times on Wednesday. Gopinath told the FT that the U.S. was still impacted by "very elevated" trade policy uncertainty despite positive developments such as President Donald Trump's administration rolling back tariffs on China and striking a U.S.-UK economic deal. Sign up here. In April, the IMF slashed its U.S. growth forecast along with most other countries over the impact of U.S. tariffs, while warning that further trade tensions would slow growth further. "It is absolutely a positive to have lower average tariff rates than the ones we assumed in [April] . . . but there is a very high level of uncertainty, and we have to see what the new rates will be," Gopinath told the FT. The comments came as Trump is proposing to extend tax cuts passed in his first term in 2017 and to add new tax breaks. Moody's also downgraded the U.S. sovereign credit rating last week due to concerns about the nation's growing, $36 trillion debt pile. The ratings agency cited the failure of successive U.S. administrations and Congress to agree on measures to reverse the trend of large annual fiscal deficits and growing interest costs. https://www.reuters.com/world/us/imfs-gopinath-urges-us-curb-fiscal-deficit-ft-reports-2025-05-21/

2025-05-21 04:37

A look at the day ahead in European and global markets from Ankur Banerjee Another day of dollar selling, albeit not an intense one, while Treasury yields remain elevated, keeping investors jittery as they watch for possible developments on U.S. trade deals and worry about the fiscal health of the U.S. economy. Sign up here. The safe haven yen and Swiss franc were again the main beneficiaries, as well as the euro , hitting their strongest levels in two weeks even though U.S. Treasury yields were on the rise in Asian hours. Rising Treasury yields usually underpin the dollar, especially against the yen, but that correlation has been weakening over the past month as U.S. President Donald Trump's erratic trade manoeuvres upended global markets and shook investor confidence in U.S. assets. The spotlight during European trading hours will be on annual earnings from retailer Marks & Spencer (MKS.L) , opens new tab, which was hit by a costly cyberattack a month ago, and on British inflation data for April. The attack on 141-year-old M&S has likely already cost it more than 60 million pounds ($81 million) in lost profit, according to analysts. Wednesday's report will offer details on the attack, which prompted the retailer to suspend online ordering. Investors will also scour the inflation report, which may influence the Bank of England's monetary policy, to gauge cost pressures following upbeat British GDP data last week. The BoE cut the bank rate by 25 basis points on May 8 and traders are betting it will deliver another 25 basis-point cut at its next meeting in June. Economists polled by Reuters estimated that Britain's consumer price index rose 3.3% in April, compared with the previous month's 2.6% rise, mainly due to an increase in regulated tariffs for household utility bills. A Reuters poll of economists forecast that Britain's economy will grow a bit faster this year than had been expected a month ago, partly due to unexpectedly strong growth in the first quarter. Long-dated Japanese government bonds found little relief on Wednesday after a poor auction result sent yields to record levels in the previous session. The steep selloff in bonds is a quandary for the Bank of Japan, which is trying to taper its debt purchases and normalise monetary policy. Rising long-term borrowing costs are also a warning sign for the highly indebted Japanese government. Key developments that could influence markets on Wednesday: Economic events: UK inflation data for April Earnings: JD Sports, Marks & Spencer 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. ($1 = 0.7448 pounds) https://www.reuters.com/world/europe/global-markets-view-europe-2025-05-21/

2025-05-21 03:01

MUMBAI, May 21 (Reuters) - The Indian rupee is set to open marginally higher on Wednesday, buoyed by a decline in the U.S. dollar after Federal Reserve officials adopted a cautious tone on the U.S. economic outlook. The 1-month non-deliverable forward indicated an open in the 85.56–85.58 range, compared to 85.6350 in the previous session. Sign up here. The rupee is likely to move marginally higher, if at all, on the back of the weakness in the dollar, a currency trader at a bank said, noting that recent upticks in the currency have consistently fizzled out amid incessant dollar demand. The dollar index dropped 0.4% on Tuesday and extended losses in Asian trading, falling below the key 100 handle. The fall boosted Asian currencies, which rose between 0.1% and 0.4%. Comments from Fed officials on Tuesday reinforced concerns around the U.S. economic outlook amid uncertainty tied to President Trump’s trade policies. St. Louis Fed President Alberto Musalem warned that despite recent cooling in U.S.-China trade tensions, the U.S. labor market is likely to weaken and prices could increase. Atlanta Fed President Raphael Bostic said the U.S. economy may be on the brink of a price-hike wave. Long-term U.S. Treasuries sold off, pushing the 10-year yield back to the 4.50% level, while short-maturity yields were broadly unchanged. The further steepening of the yield curve possibly reflected concerns about the U.S. fiscal outlook and higher inflation, MUFG Bank said in a note. "There is possibly fading market confidence towards US trade and fiscal policies," it said. Trump is urging fellow Republicans in Congress to rally behind a sweeping tax-cut proposal, which, if passed, could heighten concerns over U.S. fiscal policy. KEY INDICATORS: ** One-month non-deliverable rupee forward at 85.72; onshore one-month forward premium at 14 paise ** Dollar index down at 99.70 ** Brent crude futures up 1.6% at $66.4 per barrel ** Ten-year U.S. note yield at 4.51% ** As per NSDL data, foreign investors bought a net $109.7mln worth of Indian shares on May. 19 ** NSDL data shows foreign investors sold a net $62.2mln worth of Indian bonds on May. 19 https://www.reuters.com/world/india/fed-comments-weigh-dollar-set-stage-slight-rupee-upside-2025-05-21/

2025-05-21 00:46

May 20 (Reuters) - The U.S. Securities and Exchange Commission (SEC) on Wednesday charged cryptocurrency company Unicoin and three of its top executives, including its CEO and Board Chairman Alex Konanykhin, for false and misleading statements that raised more than $100 million from thousands of investors. Sign up here. https://www.reuters.com/sustainability/boards-policy-regulation/sec-charges-unicoin-executives-fraud-2025-05-21/

2025-05-21 00:31

Next round of Iran-US talks to take place on May 23 in Rome US intelligence suggests Israel plans to strike Iran, CNN says US-Iran nuclear talks show little progress US crude, fuel stocks up, EIA says NEW YORK, May 21 (Reuters) - Oil prices settled lower on Wednesday, after Oman's foreign minister said a fresh round of nuclear talks between Iran and the U.S. would take place later this week. Prices had gained earlier in the session on a CNN report on Tuesday that U.S. intelligence suggests Israel is preparing to strike Iranian nuclear facilities. CNN cited multiple U.S. officials and added that it was not clear whether Israeli leaders have made a final decision. Sign up here. Brent futures settled down 47 cents, or 0.7%, to $64.91 a barrel. U.S. West Texas Intermediate crude fell 46 cents, or 0.7%, to $61.57. Iran is the third-largest producer among members of the Organization of the Petroleum Exporting Countries and an Israeli attack could upset flows from the country. "Now we're going for another round of peace talks so that offset that premium we put in," said Phil Flynn, senior analyst with Price Futures Group. Still, there are concerns Iran could retaliate by blocking oil tanker flows through the Strait of Hormuz, through which Saudi Arabia, Kuwait, Iraq and the United Arab Emirates export crude oil and fuel. "If tensions were to escalate, we're likely looking at temporary trade shifts or a supply hit of around 500,000 barrels a day - something OPEC+ could offset fairly quickly," Rystad Energy analyst Priya Walia said. The U.S. and Iran have held several rounds of talks this year over Iran's nuclear programme while U.S. President Donald Trump has revived a campaign of stronger sanctions on Iranian crude exports. Kazakhstan's oil production, meanwhile, has risen by 2% in May, an industry source said on Tuesday, defying OPEC+ pressure to reduce output. Oil prices also fell on Wednesday after bearish U.S. government data on domestic crude, gasoline and distillate inventories, which all posted surprise builds last week. Crude inventories rose by 1.3 million barrels, while gasoline stocks rose by about 800,000 barrels and distillate stockpiles added about 600,000 barrels, data from the Energy Information Administration showed. https://www.reuters.com/business/energy/oil-rises-1-reports-israel-preparing-strike-iranian-nuclear-facilities-2025-05-21/

2025-05-21 00:07

BOGOTA, May 20 (Reuters) - Colombian state-run oil company Ecopetrol (ECO.CN) , opens new tab said on Tuesday it agreed to buy 10 wind and solar energy project development companies from Norway's Statkraft, in an exit from the Andean country. Ecopetrol Chief Executive Ricardo Roa said the portfolio of projects could total up to 1.3 gigawatts in capacity, which will be used to supply Ecopetrol's domestic energy needs. Sign up here. He did not disclose the value of the transaction. Local Statkraft representative Jose Castellanos said the deal would mark the firm's exit from Colombia. Statkraft, which is owned by the Norwegian state and is a major European renewable energy producer, last October had announced that it would sell assets in India, Croatia and the Netherlands as it focused investments on fewer markets. Its projects in Colombia span the La Guajira, Sucre, Cordoba, Caldas and Magdalena departments. One is currently operational, some expected to begin operations between 2026 and 2027, while others have no defined start date. Ecopetrol said in March that it expected to raise up to $2 billion in additional debt this year to finance non-organic investments. The agreement is subject to regulatory approvals and other legal conditions. In April, Ecopetrol signed an agreement with AES Colombia to acquire 49% of the Jemeiwaa Ka'I wind energy cluster. It is also in the process of acquiring a wind energy project from Italy's Enel (ENEI.MI) , opens new tab. https://www.reuters.com/business/energy/colombias-ecopetrol-buy-10-renewable-energy-firms-norways-statkraft-2025-05-20/