2025-05-07 21:05
SEOUL, May 8 (Reuters) - South Korea's foreign exchange reserves dropped to the lowest level in five years in April, caused by market stabilising measures to ease the impact of global trade volatility. Reserves stood at $404.67 billion at the end of April, down $4.99 billion, central bank data showed on Thursday, marking the lowest level since April 2020 and the biggest monthly drop since April 2024. Sign up here. The Bank of Korea said foreign exchange swap trading with the country's pension fund, meant to temporarily reduce dollar demand in the currency market, was one of the factors that contributed to the decline. In early April, the won hit its weakest level in 16 years on U.S. President Donald Trump's sweeping tariff policies. The currency later reversed course to end the month up 3.3% against the dollar, its biggest monthly gain since November 2023. https://www.reuters.com/world/asia-pacific/south-korea-fx-reserves-drop-lowest-5-years-market-stabilising-efforts-2025-05-07/
2025-05-07 21:00
Corteva's seed prices rose 3% in most regions, boosting core profit Total sales fell 2% due to weakness in Europe, Latam and Asia May 7 (Reuters) - U.S. agrichemicals firm Corteva (CTVA.N) , opens new tab beat Wall Street expectations for first-quarter profit on Wednesday, helped by higher prices for its seeds. The results come as the agrichemical industry braces itself against a potential fallout from U.S. President Donald Trump's trade policy. Sign up here. Corteva said it continues to expect current-year net sales of $17.2 billion to $17.6 billion, but added the outlook did not reflect the impact of tariffs. "We are not expecting a material net impact on our full-year 2025 results given policies in place today. Global grain and oilseed demand is not expected to decline, regardless of any changes in trade flows," it added. In the seed segment, Corteva said prices rose 3% in most regions, led by North America. The segment reported a core profit of $842 million in the quarter, up 13% from last year. Shares of the company were up 1% in volatile extended trading. However, Corteva's better-than-expected profit was overshadowed by lower sales across segments and geographies. Total sales fell 2% to $4.42 billion during the first quarter due to weakness in key markets such as Europe, Latin America and Asia. Analysts were expecting net sales of $4.54 billion in the quarter ended March 31, according to data compiled by LSEG. Both seed and crop protection segments reported a 2% fall in first-quarter net sales, primarily due to unfavorable currency impacts. The Indianapolis-based company posted an adjusted operating profit of $1.13 per share for the three months ended March 31, compared with the analysts' estimate of 88 cents per share. https://www.reuters.com/markets/commodities/corteva-beats-first-quarter-profit-estimates-2025-05-07/
2025-05-07 20:57
Hryvnia was launched in 1996, and over the decades has used the dollar as the reference currency EU membership talks influence Ukraine's currency considerations Ukraine expects $55 billion in external financing for 2025, central bank chief Pyshnyi says LONDON, May 7 (Reuters) - Ukraine is starting to consider a shift away from the U.S. dollar, possibly linking its currency more closely to the euro amid the splintering of global trade and its growing ties to Europe, Central Bank Governor Andriy Pyshnyi told Reuters. Potential accession to the European Union, a "strengthening of the EU's role in ensuring our defense capabilities, greater volatility in global markets, and the probability of global-trade fragmentation," are forcing the central bank to review whether the euro should be the reference currency for Ukraine's hryvnia instead of the dollar, Pyshnyi said in emailed remarks. Sign up here. "This work is complex and requires high-quality, versatile preparation," Pyshnyi added, in the most direct comments by a Ukrainian official on a possible shift. The dollar dominates international trade and accounts for the majority of global reserves , opens new tab. Major economies including Saudi Arabia and Hong Kong peg their currencies to the dollar. But under President Donald Trump, the U.S. has unleashed a trade war by introducing what could be the highest tariffs in a century, a move that has prompted some observers to question the future role of the dollar as global reserve currency. Now in the fourth year of fighting an invasion by Russia, Ukraine has also seen Trump temporarily cut off some military assistance to the country. European leaders, including from the EU, have vowed to strengthen Kyiv's army to ensure it can be the cornerstone of future security in Ukraine but progress has been difficult. Meanwhile, Ukraine struck an agreement that gives the United States preferential access to new Ukrainian mineral deals and which funds investment in the nation's reconstruction. Since Trump's return to the White House, the greenback (.DXY) , opens new tab is down more than 9% against a basket of major currencies as investors pull back from owning U.S. assets. Some experts warn against associating the strength of the dollar to its reserve-currency status. Yet historically, dollar holdings have been linked to security alliances and military ties , opens new tab to Washington. Transactions with the U.S. dollar continue to dominate all segments of the FX market, said Pyshnyi, but the share of euro-denominated transactions has been rising in most segments though "so far moderately." He did not elaborate. Ukraine launched the hryvnia in 1996, and over the decades it has used the dollar as the reference currency. Immediately after Russia's invasion in February 2022, the central bank imposed capital controls and pegged the hryvnia at an official rate of about 29 to the U.S. dollar. Ukraine was forced to devalue later due to a buildup of fiscal imbalances. In October 2023, the central bank moved from a firm peg to a managed exchange-rate regime that uses the U.S. dollar as the reference - the gauge to measure FX interventions and for smoothing fluctuations in the exchange rate. The EU opened membership talks with Ukraine and Moldova nearly a year ago, although a long and tough road lies ahead before it could join the bloc. EU President Ursula von der Leyen said in February that Ukraine could be in by 2030 provided it continued to enact reforms to its political and judicial system at the current pace. In preparation, Moldova switched its reference currency for the Moldovan lei to the euro from the dollar on Jan. 2. A revival of investment and consumer activity thanks to closer links with Europe and economic normalisation would help economic growth pick up slightly over the next two years to 3.7-3.9%, Pyshnyi said, though much of the economic trajectory depends on how the conflict develops. "A quick end to the war would clearly be a positive scenario with good economic outcomes if it were to incorporate security guarantees for Ukraine," Pyshnyi said. "Nevertheless, it's crucial to acknowledge that the economic benefits of ending the war would likely take time to fully materialize." Ukraine is relying on external financing to help fund the war effort. Pyshnyi said he expected $55 billion this year which would not only cover the budget deficit but also be used to set aside a public-finance reserve for the coming years, when aid volumes were likely to start declining. "We project Ukraine will receive about $17 billion in 2026 and $15 billion in 2027," said Pyshnyi. https://www.reuters.com/world/europe/ukraine-considers-shift-dollar-euro-amid-geopolitical-realignments-2025-05-07/
2025-05-07 20:52
May 7 (Reuters) - APA Corp (APA.O) , opens new tab said on Wednesday that it would sell its New Mexico Permian assets for $608 million as part of an effort to streamline operations and focus on core areas, after it beat Wall Street estimates for first-quarter profit. The assets, which produce about 12,400 barrels of oil equivalent per day (boepd), represent less than 5% of APA's total Permian output. Sign up here. The deal with Permian Resources (PR.N) , opens new tab is expected to close in the second quarter, with proceeds expected to reduce debt, the company said. The move follows APA's acquisition of rival Callon Petroleum last year, which expanded its operations in the Permian shale basin of West Texas and New Mexico. APA said its quarterly production stood at 468,978 boepd, compared to 389,157 boepd the previous year. The rise in production helped the oil and gas producer to offset a steep decline in crude prices. Crude oil prices fell in the first-quarter as investors braced for a production increase from OPEC+ and expressed concerns over U.S. President Donald Trump's tariffs potentially slowing global economic growth and reducing fuel demand. APA's average oil price per barrel stood at $73.73 per barrel in the January-March quarter, down from $80.65 per barrel in the same period last year. Given current market conditions, the company is also reducing its rig count to six. In February, APA said it planned , opens new tab to run eight rigs in the Permian and 12 rigs in Egypt. APA also cut its 2025 development capital budget by $150 million. The company also said it now expects $130 million in cost savings for 2025, more than double its earlier estimate. The Houston, Texas-based company said adjusted profit was $1.06 per share for the three months ended March 31, surpassing analysts' average estimate of 83 cents per share, according to data compiled by LSEG. https://www.reuters.com/business/energy/oil-producer-apas-quarterly-profit-beats-estimates-higher-output-2025-05-07/
2025-05-07 20:48
Fed keeps rates unchanged, as expected Disney lifts Dow Google, Apple weigh on Nasdaq Indexes up: Dow 0.7%, S&P 500 0.43%, Nasdaq 0.27% NEW YORK, May 7 (Reuters) - U.S. stocks advanced on Wednesday in choppy trading, buoyed as semiconductor stocks rallied late on a report that regulations on artificial intelligence chips would be loosened. For most of the session, stocks bounced around, and trading remained choppy after the Federal Reserve kept U.S. interest rates unchanged in a move that market participants expected. Sign up here. Close to the closing bell, stocks rallied as chipmakers jumped after Bloomberg reported President Donald Trump's administration plans to rescind artificial intelligence chip curbs. The report was confirmed by a Commerce Department spokesperson. The PHLX semiconductor index (.SOX) , opens new tab ended 1.7% higher after falling as much as 1% on the day. Earlier, the Fed kept rates steady, with the central bank saying the risks of both higher inflation and unemployment had risen, further clouding the economic outlook as the Fed grapples with the impact of Trump's tariff policies. Trading in stocks was uneven following the Fed statement, until the boost from chipmakers. "Clearly, the statement is trying to send a message to the White House that their recent actions have made the economic environment more difficult," said Ellen Hazen, chief market strategist at F.L. Putnam Investment Management in Lynnfield, Massachusetts. "They're saying that the risk of higher unemployment has risen, the risk of higher inflation has risen. And they didn't specifically attribute it to the tariffs, but I think anybody looking at that is going to understand that that's what they mean." The Dow Jones Industrial Average (.DJI) , opens new tab rose 284.97 points, or 0.70%, to 41,113.97, the S&P 500 (.SPX) , opens new tab gained 24.37 points, or 0.43%, to 5,631.28 and the Nasdaq Composite (.IXIC) , opens new tab gained 48.50 points, or 0.27%, to 17,738.16. The Dow was boosted by a 10.8% jump in Disney (DIS.N) , opens new tab shares after the entertainment company's quarterly results topped Street expectations. After the central bank's decision on rates, Fed Chair Jerome Powell acknowledged uncertainty has soured sentiment among people and businesses, but the economy itself is still healthy. In addition, he said rate cuts are possible if supported by economic data but the Fed cannot make preemptive policy changes until there is more clarity. Markets are still largely pricing in a rate cut of at least 25 basis points from the Fed at its July meeting, according to LSEG data. Market sentiment was boosted early in the session, a day after Washington announced representatives of the U.S. and China would meet over the weekend in Switzerland for ice-breaker trade discussions following weeks of tit-for-tat tariffs between the economic heavyweights. The Trump administration has said potential deals with major trading partners are underway, but markets have yet to see talks bear fruit. Trump said shortly before the Fed statement he was not open to pulling back the 145% tariffs that had been announced. Financial markets have been whipsawed in recent weeks since Trump announced the tariffs in early April, with the S&P 500 dropping nearly 15% in the days after, only to recover nearly all of the declines. During most of the session, the Nasdaq was lower in part due weakness in Google-parent Alphabet(GOOGL.O) , opens new tab, which closed down more than 7% and served to pull the S&P 500 communication services sector (.SPLRCL) , opens new tab down 1.8% as the worst performer on the session. A report said iPhone-maker Apple (AAPL.O) , opens new tab was exploring the option of adding artificial-intelligence search options to its web browser, citing an executive. Apple's shares ended 1.1% lower. Advancing issues outnumbered decliners by a 1.56-to-1 ratio on the NYSE, and by a 1.2-to-1 ratio on the Nasdaq. The S&P 500 posted 18 new 52-week highs and eight new lows, while the Nasdaq Composite recorded 52 new highs and 114 new lows. Volume on U.S. exchanges was 15.43 billion shares, compared with the 17.55 billion average for the full session over the last 20 trading days. https://www.reuters.com/world/china/us-stock-futures-rise-china-trade-de-escalation-hopes-fed-watch-2025-05-07/
2025-05-07 20:45
WASHINGTON, May 7 (Reuters) - U.S. passenger railroad Amtrak said on Wednesday it is eliminating 450 positions as it aims to cut annual costs by $100 million as future support from Congress remains uncertain. Amtrak said through a reduction-in-force process, and cutting of open positions, Amtrak has cut 450 roles that, combined with other recent cost cuts, "will help Amtrak save $100 million annually." Sign up here. WHY IT MATTERS The changes come after the White House in March forced Amtrak CEO Stephen Gardner to step down after President Donald Trump sought the changes. Amtrak's board has not named a new CEO, but Amtrak President Roger Harris is currently running operations. Billionaire Elon Musk, who is advising Trump on plans to radically shrink the U.S. government, said in March he thought Amtrak should be privatized. CONTEXT Trump, during his first term, repeatedly sought to cut funding , opens new tab to Amtrak, which received about $2.4 billion in annual federal support in 2023. Congress in March approved $2.42 billion for Amtrak through September 30 in annual funding. Amtrak said in December ridership topped 2019 pre-COVID-19 levels for the first time in 2024, reaching a record high even with less capacity. Ridership increased over 15% in 2023 to a record 32.8 million customer trips, as passenger revenue hit $2.5 billion, up 9% over the prior year. The rail operator reported an adjusted operating loss of $705 million for the 12 months ended September 30, 2024, down 9% versus 2023. Congress approved $66 billion for rail projects as part of a massive infrastructure bill in 2021, with $22 billion dedicated to Amtrak over five years on top of regular funding. https://www.reuters.com/business/world-at-work/us-railroad-amtrak-cutting-450-positions-100-million-annual-costs-2025-05-07/
