2025-05-16 01:51

TOKYO, May 16 (Reuters) - Japanese Finance Minister Katsunobu Kato said on Friday that he would seek to discuss foreign exchange issues with U.S. Treasury Secretary Scott Bessent on the understanding that excessive currency volatility is undesirable. "We reaffirmed at our meeting on April 24 that foreign exchange rates should be set by markets and that excessive volatility has adverse impacts on economic and financial stability," Kato told parliament. Sign up here. "We also agreed to continue close and constructive dialogue. ... Based on this common understanding that Japan and the United States have built, we hope to continue discussions," he said. U.S. President Donald Trump's focus on addressing the trade deficit and his past criticisms of Japan's weak yen have heightened market concerns that Tokyo will face pressure to strengthen the yen against the dollar. Kato is hoping to meet Bessent on the sidelines of the May 20-22 meetings of finance ministers and central bank governors from the Group of Seven economic powers in Canada. Japan and the United States have agreed to keep the thorny issue of currency rates separate from direct trade negotiations, setting aside the issues for talks between their finance ministers. Kato has said if the meeting with Bessent goes ahead, they could naturally discuss foreign exchange as part of Japan's tariff negotiations with the United States. Asked about potential portfolio reshuffle of Japan's U.S. treasury holdings, Kato said the government holds treasuries from the standpoint of achieving optimal asset management while securing enough liquidity. Bloomberg cited the head of the influential opposition Democratic Party for the People as saying that Japan could offer to reinvest proceeds from maturing U.S. treasury holdings into super-long bonds in return for concessions on tariffs. https://www.reuters.com/markets/us/japan-finmin-focus-forex-consensus-dialogue-with-bessent-2025-05-16/

2025-05-16 00:56

Brent, WTI rise after more than 2% drop in previous session Brent and WTI post second straight weekly gains Focus on Iran nuclear deal IEA hikes supply growth forecast, eyes surplus this year and next HOUSTON, May 16 (Reuters) - Oil settled higher on Friday, notching a second straight week of gains on easing U.S.-China trade tensions, although prices were held back by expectations of higher supply from Iran and OPEC+. Brent crude futures settled up 88 cents, or 1.4%, at $65.41 per barrel, while U.S. West Texas Intermediate crude futures closed 87 cents, or 1.4% higher at $62.49. Sign up here. The benchmarks posted a weekly rise of 1% and 2.4% respectively. The contracts fell by more than 2% in the previous session on the prospect of an Iranian nuclear deal, which could result in an easing of sanctions that could see Iranian crude return to the global market. "Expected increases in OPEC+ oil production along with a more probable Iranian nuclear agreement has re-surfaced the bear trade," said Dennis Kissler, senior vice president of trading at BOK Financial. "Near term, with geopolitical temperatures cooling, a strong seasonal travel demand will be needed in the coming months to counter the expected rises in supplies," Kissler added. U.S. President Donald Trump said on Thursday the U.S. was nearing a nuclear deal with Iran, with Tehran "sort of" agreeing to its terms. However, a source familiar with the talks said there were still issues to resolve. ING analysts wrote in a note that a nuclear deal lifting sanctions would allow Iran to increase oil output, resulting in additional supply of around 400,000 barrels per day. Investor sentiment was boosted this week by the U.S. and China, the world's two biggest oil consumers and economies, agreeing to a 90-day pause on their trade war during which both sides would sharply lower trade duties. The hefty reciprocal tariffs had raised concerns about a sharp blow to global growth and oil demand. Analysts at BMI, a unit of Fitch Solutions, said in a research report, however, that "while the 90-day cooling off period leaves the door open for additional progress on lowering trade barriers on both sides, the uncertainty on longer-term trade policy will limit price upside." Keeping a lid on supply additions, Kyiv and Moscow failed to agree to a ceasefire at their first direct talks in more than three years, with Russia presenting conditions that a Ukrainian source described as "non-starters". Israel struck Yemen's Red Sea ports of Hodeidah and Salif on Friday, continuing its campaign to degrade Houthi military capabilities. On the U.S. supply side, oil rigs fell by 1 to 473 this week, their lowest since January, energy services firm Baker Hughes (BKR.O) , opens new tab said in its closely followed report on Friday. The dollar rose on Friday after the latest round of economic data showed a jump in import prices while consumer sentiment remained subdued, putting it on pace for a fourth straight weekly advance. https://www.reuters.com/markets/commodities/oil-prices-heading-1-weekly-gain-us-china-trade-detente-2025-05-16/

2025-05-16 00:49

Import prices unexpectedly rise Gauge of consumer sentiment falls, inflation expectations jump Dollar poised for fourth straight week of gains NEW YORK, May 16 (Reuters) - The dollar strengthened on Friday after the latest round of economic data showed a rebound in import prices while consumer sentiment remained subdued as tariff worries jumped, putting it on pace for a fourth straight weekly advance. The Labor Department said import prices gained 0.1% last month after dropping 0.4% in March as a jump in the cost of capital goods outweighed cheaper energy prices. Economists polled by Reuters had forecast import prices, which exclude tariffs, would decrease 0.4%. Sign up here. The dollar began to strengthen after a separate reading from the University of Michigan Surveys of Consumers showed its Consumer Sentiment Index dropped to 50.8 this month, below the 53.4 estimate, from a final reading of 52.2 in April. In addition, the 12-month inflation expectations of consumers shot up to 7.3%, the highest level since November 1981, from 6.5%. The greenback began the week with a surge of more than 1% on Monday after the United States and China announced a 90-day pause on most of the tariffs imposed on each other's goods since early April, easing fears of a global recession, but had been trending lower throughout the week in part due to tepid economic data. "There's all this data, but the headlines are taking over," said Juan Perez, director of trading at Monex USA in Washington. "The issue with (trade) developments is that they're just happening a whole lot faster, and the ongoing, never-ending lack of guidance for the future continues. Meanwhile, we're looking at data that is not truly reflecting all of the anxiety that we've really been living through." The dollar index , which measures the greenback against a basket of currencies, rose 0.36% to 101.13, with the euro down 0.37% at $1.1146. The greenback is up about 0.7% on the week, which would mark its biggest weekly gain in about 2-1/2 months, while the euro is down 0.9% on the week, and on track for its biggest weekly decline since early February. The greenback is still down nearly 3% since April 2, when U.S. President Donald Trump announced his spate of tariffs on countries around the globe. "The very idea that trade is not getting away from turbulence continues to affect the long-term faith in the dollar," said Perez. Markets have dialed back expectations for rate cuts from the U.S. Federal Reserve this year as a result of the signs of easing trade tensions, pricing in a 67.1% chance for the first cut of at least 25 basis points (bps) at the central bank's September meeting, according to LSEG data. The prior view was for a likely cut in July. Recent comments from Fed officials have indicated the central bank needs more data to determine the impact of the tariff announcements on prices and the economy before adjusting policy. Against the Japanese yen , the dollar strengthened 0.16% to 145.89. Japan's economy shrank for the first time in a year and at a faster pace than expected, data for the March quarter showed on Friday. The dollar is up 0.4% for the week against the yen. Japanese Finance Minister Katsunobu Kato said he would seek to discuss foreign exchange issues with U.S. Treasury Secretary Scott Bessent on the understanding that excessive currency volatility is undesirable and hopes to meet with Bessent next week. Sterling weakened 0.2% to $1.327 and is down 0.1% on the week. https://www.reuters.com/world/middle-east/dollar-tracks-treasury-yields-lower-benign-us-data-2025-05-16/

2025-05-16 00:22

CAIRO, May 16 (Reuters) - The Syrian government and DP World signed a memorandum of understanding (MoU) worth $800 million to develop Syria's port of Tartous, Syrian state news agency SANA said on Friday, after the lifting of U.S sanctions cleared the way for the deal. The deal to develop, manage and operate a multi-purpose terminal at Tartous includes cooperation in establishing industrial and free trade zones. DP World is a subsidiary of United Arab Emirates investment company Dubai World. Sign up here. Syria is seeking to attract foreign investments to boost its struggling economy, and the deal was signed in the same week that U.S. President Donald Trump announced plans to lift of sanctions on Syria during a visit to Riyadh. Trump said he made the decision to lift sanctions after discussions with Saudi Crown Prince Mohammed bin Salman and Turkish President Tayyip Erdogan, whose governments have both strongly urged the lifting of sanctions. Trump had also met with Syrian President Ahmed Al-Sharaa ahead of the GCC summit in Riyadh on Wednesday. U.S. Secretary of State Marco Rubio said on Thursday that Trump intends to issue waivers under the "Caesar Syria Civilian Protection Act", through which Washington imposed stiff sanctions on former President Bashar al-Assad's government and secondary sanctions on outside companies or governments that worked with it. Removing U.S. sanctions that cut Syria off from the global financial system will also clear the way for greater engagement by humanitarian organizations working in Syria, easing foreign investment and trade as the country rebuilds. https://www.reuters.com/world/middle-east/syria-dp-world-ink-800-million-deal-port-development-2025-05-16/

2025-05-16 00:02

May 15 (Reuters) - Bayer (BAYGn.DE) , opens new tab is preparing a plan to settle some of its mass lawsuits over Roundup weedkiller in Missouri, and may also seek bankruptcy for its Monsanto unit if the effort fails, the Wall Street Journal reported on Thursday, citing sources. The German pharmaceutical and biotechnology group has paid about $10 billion to settle disputed claims that Roundup, based on the herbicide glyphosate, causes cancer. About 67,000 further cases are pending for which the group has set aside $5.9 billion in legal provisions. Sign up here. Bayer has engaged advisers from law firm Latham & Watkins and consultancy AlixPartners to examine its options, the Journal said, adding that a Chapter 11 filing by Monsanto would pause lawsuits against the division and open a path to settling its share of Roundup-related liability in bankruptcy court. Reuters could not immediately confirm the report. Bayer, Latham & Watkins and AlixPartners did not immediately respond to Reuters' requests for comment. Last month, Bayer petitioned the U.S. Supreme Court to restrict claims linking its Roundup weedkiller to cancer, aiming to avert billions in potential damages. The company said this week a decision could come as early as next month. The group acquired Roundup through its $63 billion purchase of U.S. agrochemical firm Monsanto in 2018. Bayer has since seen struggles with glyphosate litigations, a 2023 development setback for its most promising experimental medicine, weak agriculture markets and pressure from some investors to separate or sell businesses. https://www.reuters.com/business/healthcare-pharmaceuticals/bayer-seeks-roundup-settlement-explores-monsanto-bankruptcy-wsj-reports-2025-05-15/

2025-05-15 23:51

Cisco gains after raising FY forecasts UnitedHealth down on report it faces criminal probe S&P 500 +0.41%, Nasdaq -0.18%, Dow +0.65% May 15 (Reuters) - Wall Street stocks ended mixed on Thursday, with gains in Cisco Systems following an upbeat forecast, while UnitedHealth tumbled after a report of a criminal investigation into the insurer. The S&P 500 has more than recovered from a deep selloff in April triggered by U.S. President Donald Trump's global trade war, as investors bet Washington will reach deals to roll back steep tariffs that economists worry will drive up consumer prices. Sign up here. "People think there are going to be deals, so they are just getting ahead of that, and they don't want to be short stocks. 'Deal anticipation' is what I'd call it," said Dennis Dick, a trader at Triple D Trading. Cisco Systems jumped almost 5% after the networking company raised its annual forecast, driven by the artificial intelligence boom. UnitedHealth Group (UNH.N) , opens new tab plunged 11% to a five-year low after the Wall Street Journal reported the U.S. Department of Justice was conducting a criminal investigation into the company for possible Medicare fraud. UnitedHealth said it had not been informed of a criminal probe by federal prosecutors. Walmart (WMT.N) , opens new tab eased 0.5% after the heavyweight retailer warned it would start raising prices later this month due to tariffs, even after its first-quarter U.S. comparable sales beat expectations. Rival retailer Amazon (AMZN.O) , opens new tab, also heavily exposed to Trump's tariffs, dropped 2.4% and weighed on the Nasdaq. Walmart declined to provide a second-quarter profit outlook, joining other companies across sectors that have tweaked or pulled their forecasts, signaling that corporate America is hunkering down due to tariff-related uncertainty. The S&P 500 climbed 0.41% to end at 5,916.93 points. The Nasdaq declined 0.18% to 19,112.32 points, while the Dow Jones Industrial Average rose 0.65% to 42,322.75 points. Of the 11 S&P 500 sector indexes, eight rose, led by utilities (.SPLRCU) , opens new tab, up 2.1%, followed by a 2% gain in consumer staples (.SPLRCS) , opens new tab. The S&P 500 remains about 4% below its record high close on February 19. Earlier in the day, data showed U.S. retail sales growth slowed in April, while a separate report showed producer prices unexpectedly fell last month. That followed a relatively tame consumer price reading earlier in the week. "We're still waiting for that inflation pop. It's not here yet, but we're still waiting," said John Augustine, chief investment officer of Huntington National Bank. Advancing issues outnumbered falling ones within the S&P 500 (.AD.SPX) , opens new tab by a 2.9-to-one ratio. The S&P 500 posted 15 new highs and six new lows; the Nasdaq recorded 51 new highs and 107 new lows. Volume on U.S. exchanges was relatively heavy, with 17.9 billion shares traded, compared to an average of 16.8 billion shares over the previous 20 sessions. https://www.reuters.com/business/us-stock-futures-slide-tariff-rally-eases-unitedhealth-slips-2025-05-15/