2025-04-24 20:20

Proctor & Gamble, PepsiCo down after trimming forecasts Hasbro, ServiceNow leap after results March durable goods jump more than expected Alphabet beats revenue estimates, shares up after hours Indexes up: Dow 1.23%, S&P 500 2.03%, Nasdaq 2.74% NEW YORK, April 24 (Reuters) - U.S. stocks closed higher on Thursday, rallying for a third straight day with a solid boost from technology shares as investors parsed a mixed bag of corporate earnings and watched for signs of progress in the U.S.-China tariff stand-off. All three major U.S. stock indexes posted sharp gains, with the "magnificent seven" group of artificial intelligence-related megacaps, boosted by AI-powered software firm ServiceNow's (NOW.N) , opens new tab better-than-expected quarterly results, giving the Nasdaq the edge. Sign up here. Beijing called for cancellation of U.S. tariffs on Chinese goods, following comments from U.S. Treasury Secretary Scott Bessent signaling the White House could be willing to de-escalate trade tensions that have whipsawed markets for weeks. Easing tariff rhetoric is "part of the reason why you're seeing the chips lead because they've been kind of in the bull's eye in (the trade dispute) between China and the U.S.," said Paul Nolte, senior wealth advisor & market strategist at Murphy & Sylvest in Elmhurst, Illinois. "So any cooling of tariff talks between the two countries bolsters the technology sector as a whole." "There's still a ton of questions around tariffs right now that we really don't have answers to," Nolte added. "So a lot of us are just kind of throwing darts in the dark." As first-quarter earnings season hits full stride, the extent to which trade war uncertainties have affected business and consumer sentiment is making itself known. Procter & Gamble (PG.N) , opens new tab, PepsiCo (PEP.O) , opens new tab, Chipotle Mexican Grill (CMG.N) , opens new tab and American Airlines (AAL.O) , opens new tab all cut or withdrew forecasts due to elevated uncertainty among consumers. Shares for Procter & Gamble slid by 3.7% and PepsiCo tumbled 4.9%. Not all guidance was downbeat. ServiceNow's profit was better than analysts expected due to resilient demand for AI-powered software. Its shares jumped 15.5%. Hasbro's (HAS.O) , opens new tab results beat expectations, helped by the strength of its gaming segment, sending the toymaker's shares up 14.6%. Of the 157 companies in the S&P 500 that have reported so far, 74% have beaten expectations, and analysts currently believe aggregate S&P 500 earnings growth of 8.9% year-on-year, up from 8.0% as of April 1, according to LSEG. On the data front, stronger-than-expected new orders for durable goods and rangebound jobless claims painted a picture of economic resilience. The Dow Jones Industrial Average (.DJI) , opens new tab rose 486.83 points, or 1.23%, to 40,093.40, the S&P 500 (.SPX) , opens new tab gained 108.91 points, or 2.03%, to 5,484.77 and the Nasdaq Composite (.IXIC) , opens new tab gained 457.99 points, or 2.74%, to 17,166.04. Alphabet (GOOGL.O) , opens new tab shares rose in extended trading after the Google parent beat quarterly revenue estimates. Of the 11 major sectors of the S&P 500 all but consumer staples (.SPLRCS) , opens new tab advanced, with technology shares (.SPLRCT) , opens new tab enjoying the largest percentage gains, up 3.5%. Advancing issues outnumbered decliners by a 5.84-to-1 ratio on the NYSE. There were 50 new highs and 30 new lows on the NYSE. On the Nasdaq, 3,401 stocks rose and 1,005 fell as advancing issues outnumbered decliners by a 3.38-to-1 ratio. The S&P 500 posted 4 new 52-week highs and 4 new lows while the Nasdaq Composite recorded 40 new highs and 51 new lows. Volume on U.S. exchanges was 14.95 billion shares, compared with the 19.15 billion average for the full session over the last 20 trading days. https://www.reuters.com/business/us-stock-futures-slip-investors-assess-trade-developments-earnings-reports-2025-04-24/

2025-04-24 20:19

Bessent: South Koreans brought 'their A game' Sides set to talk technical terms as early as next week Political crisis complicates Seoul's negotiation commitments SEOUL/WASHINGTON, April 24 (Reuters) - The U.S. and South Korea had a "very successful" meeting on Thursday, Treasury Secretary Scott Bessent said, as the two countries opened trade talks with Seoul seeking a path to diminish the stiff tariffs President Donald Trump is angling to impose. "We had a very successful bilateral meeting with the Republic of South Korea today," Bessent told reporters at the White House. "We may be moving faster than I thought, and we will be talking technical terms as early as next week." "So South Koreans came early, they came with their A game, and we will see if they follow through on that," Bessent said. Sign up here. Bessent offered no other details on talks that were expected also to encompass cooperation on shipbuilding and energy, and possibly shared defence costs. The discussions with South Korea occurred as Bessent and other Trump trade team members met with a multitude of foreign finance and trade officials looking to strike tariff deals on the sidelines of this week's meetings of the International Monetary Fund and World Bank Group in Washington. South Korea, which faces 25% U.S. reciprocal tariffs, is among the first countries the Trump administration has initiated trade talks with, after its first face-to-face discussions last week with Japan, another key Asian ally slapped with 24% tariffs. Bessent was also due to meet Japanese officials on Thursday. Given how Seoul is competing with other countries and faces a 90-day timeframe before a tariff pause is due to end, he said talks were likely to be extended, and may even result in some form of renegotiated U.S.-Korea Free Trade Agreement. South Korea, a key U.S. ally, has often been singled out by Trump for its trade surpluses with the United States, which hit a record high of $55.6 billion in 2024, up 25% from 2023 and nearly five times higher than in 2019. The meeting was arranged at the request of the United States, Seoul said, and comes after Trump and South Korea's Acting President Han Duck-soo discussed shipbuilding, energy purchases, an Alaskan gas project and defence payments in a phone call on April 8. "The government will do its best to find a 'win-win' between the two countries, with focus on three areas of trade balance, shipbuilding and LNG, under the principle that the national interest is the foremost priority," Han said on Thursday ahead of the meeting. Since the call, South Korean officials have touted shipbuilding as a "very important card" it holds. South Korea is the world's second-largest shipbuilder after China, and Trump has specifically called for cooperation in the sector since returning to power. At the same time, Seoul has taken a more cautious stance on the Alaskan gas project, saying participation could be part of a negotiation package, while noting questions about its profitability. South Korea's auto sector is seen as particularly vulnerable to tariffs, as the country's car sales to the United States account for 49% of its total auto exports. The U.S. has already applied 25% tariffs on autos, prompting Seoul to announce emergency support measures to help major exporting companies such as Hyundai Motor and Kia. On the issue of payments for the 28,500 U.S. troops South Korea hosts, Industry Minister Ahn Duk-geun said on Wednesday Seoul was prepared if the issue was brought up, but Foreign Minister Cho Tae-yul told lawmakers later it would not be considered for a package deal and should be dealt with separately. In preparation for discussions on non-tariff barriers, Seoul's delegation will include officials from eight different ministries: finance, trade, foreign affairs, technology, transport, environment, agriculture and health. South Korea is among three Asia-Pacific countries that have a comprehensive trade pact with the United States, eliminating nearly all tariffs between the two countries. It was first signed in 2007 but revised in 2018 during Trump's first term after he said the initial agreement was a "horrible deal." ACTING LEADERSHIP The trade talks come as South Korea remains embroiled in its worst political crisis in decades. A snap presidential election will be held on June 3, after former President Yoon Suk Yeol was impeached and removed from office this month over his failed declaration of martial law. "We basically expect concrete progress on the negotiations between the Korean and the U.S. government to come out only after the snap presidential election," said Oh Suk-tae, an economist at Societe Generale. Oh said it would be especially difficult for South Korea to make any firm commitment on energy projects and defence costs under an acting president. Han has, however, in interviews this month expressed willingness to reach a deal, saying the country will not fight back against Washington as it owes the U.S. for its recovery from the 1950-1953 Korean War. "Should acting president Han Duck-soo appear to successfully negotiate tariff waivers for South Korea, particularly for its auto exports, he would increasingly position himself as a presidential candidate," said economists at S&P Global Market Intelligence. See separate FACTBOX on the trade talks. https://www.reuters.com/business/autos-transportation/south-korea-target-lower-tariffs-opening-round-us-trade-talks-2025-04-24/

2025-04-24 20:14

April 24 (Reuters) - BlackRock (BLK.N) , opens new tab has been acquiring billions of pounds of UK assets it considers "undervalued," The Times newspaper reported on Thursday, quoting the U.S. asset manager's CEO Larry Fink. In an interview with the British newspaper, Fink said that BlackRock has been broadly increasing its investments in UK assets "across the board." Sign up here. Fink said that the company "allocated more capital back to the UK tactically now with the belief that in the short run, the new administration is trying to tackle some of the hard issues." "I have more confidence in the UK economy today than I did a year ago," the chief executive and chairman of the world's largest asset management firm said. Assets managed by New York-based BlackRock increased to a record high value in the first quarter, however Fink added that anxiety was dominating markets. He noted that many UK stocks, particularly in the banking sector, were undervalued due to excessive discounts. "We added to our positions across the board with the idea that we believe the market was discounting too much negativity," Fink told The Times. "And we believe the negativity was probably not warranted." British companies buckled in April under the strain of an escalating global trade war that threatens to tip the economy into a new downturn, as per results projected by a survey earlier this week. https://www.reuters.com/business/finance/blackrock-ceo-buying-undervalued-uk-assets-times-reports-2025-04-24/

2025-04-24 19:47

RABAT, Morocco, April 24 (Reuters) - Morocco's King Mohammed VI gave the go-ahead on Thursday for a rail expansion plan worth 96 billion dirhams ($10.3 billion), including the construction of a high-speed line to Marrakesh, the country's main tourist hub, by 2030, state media reported. Morocco's preparations to co-host the World Cup in 2030, together with Spain and Portugal, has spurred the extension of the high-speed, intercity and urban rail networks. Sign up here. The country also hopes the investments will help develop its nascent rail industry. The new high-speed line, worth 53 billion dirhams, will start from Kenitra on the Atlantic coast and run 430 kilometres south to Marrakesh, serving Rabat and Casablanca along the way. Designed for a speed of 350 kilometres per hour, the line will cut the journey between Marrakesh and Tangier by two hours, to 2 hours and 40 minutes, while travel time between Rabat and Casablanca's main airport will be reduced to 35 minutes. Moroccan state-owned rail operator ONCF announced in February that it had signed deals to purchase 168 trains from France, Spain and South Korea for 29 billion dirhams. France's Alstom (ALSO.PA) , opens new tab will supply ONCF with Avelia Horizon double-decker high-speed trains that can carry 640 passengers and cruise at a speed of 320 kilometres per hour. The other trains are mainly intercity and urban trains, with ONCF planning to double the number of cities it serves to 43, covering 87% of the Moroccan population by 2040. The purchase deals also include investments in the country's rail industry. (This story has been corrected to say 29 billion dirhams, not 2.9 billion, in paragraph 6) https://www.reuters.com/world/africa/morocco-launches-10-billion-rail-expansion-plan-2025-04-24/

2025-04-24 19:29

Trump pushing deal to expand economic cooperation Ukrainians met with Treasury secretary on Wednesday WASHINGTON, April 24 (Reuters) - Ukraine and the United States still have issues to resolve before signing a critical minerals agreement, but Kyiv officials are working to seal a deal "as fast as we can," Ukrainian Finance Minister Serhii Marchenko told Reuters on Thursday. Marchenko and other Ukrainian officials met with U.S. Treasury Secretary Scott Bessent on Wednesday to discuss the deal and ongoing questions about Russian assets frozen and held by the West since Russia's invasion of Ukraine in February 2022. Sign up here. The two countries signed a memorandum a week ago as an initial step towards clinching an agreement on expanding economic cooperation, including through the development of mineral resources in Ukraine, that has proven elusive. U.S. President Donald Trump has promoted the deal since starting his second term in January. Both sides had been poised in February to sign a deal on natural resources, but it was delayed - and has since been revised - after an Oval Office meeting between Trump and Ukrainian President Volodymyr Zelenskiy turned into a shouting match. Trump last week said he expected the deal to be signed on Thursday, but Marchenko said he did not expect a signing this week, although he and senior Ukrainian officials, including Prime Minister Denys Shmyhal, are in Washington for the Spring Meetings of the International Monetary Fund and World Bank. “There was progress and now our teams are working very closely together,” Marchenko said after an event hosted by the Ukrainian embassy. "There are still some questions which we are discussing,” he said, without providing any details. "We are working as fast as we can to sign the deal," he told Reuters later in the day, although he gave no specific timetable for finalizing an agreement. He said the talks were continuing despite Russia’s attacks on Kyiv overnight, saying the two issues were unrelated. Treasury on Thursday disclosed the meeting with the Ukrainian officials and stressed the need to sign the economic partnership between the two countries as soon as possible. Trump is pushing for a compact that gives the United States privileged access to Ukraine's natural resources and critical minerals in what he casts as repayment for military aid provided under former President Joe Biden. Washington has said it will walk away from efforts to broker a peace deal between Russia and Ukraine unless there are clear signs of progress soon. Marchenko also said Bessent wants the issue of frozen Russian assets - which Kyiv says should be turned over to Ukraine to pay for war damages and losses - to be part of broader discussions. https://www.reuters.com/markets/commodities/ukraines-marchenko-says-progress-critical-minerals-deal-with-us-no-deal-this-2025-04-24/

2025-04-24 19:04

Japan's Kato, US Bessent meet for 1st face-to-face talks Kato says explained Japan's economy, wages to Bessent US Treasury issues no statement on bilateral meeting BOJ chief says focusing on durably achieving price goal WASHINGTON, April 24 (Reuters) - Japanese Finance Minister Katsunobu Kato said on Thursday he agreed with U.S. Treasury Secretary Scott Bessent to continue "constructive" dialogue on currency policy, but did not discuss setting currency targets or a framework to control yen moves. Kato said he explained to Bessent "Japan's economic developments including recent wage increases" in their first face-to-face meeting held in Washington earlier on Thursday. Sign up here. The two sides also re-confirmed a long-held agreement among G7 advanced nations that exchange rates should be set by markets, and that excessive volatility in currency moves would hurt economic stability. But they did not discuss whether recent moves in the yen were excessive, Kato said. "There was absolutely no discussion on a target for exchange-rate levels or a framework to manage currency moves," Kato told a news conference, when asked whether he received criticism from Bessent over the weak yen, or accusation Tokyo was manipulating the currency to give exports a trade advantage. The U.S. Treasury Department by late Thursday had not issued any statement on the bilateral meeting, held on the sidelines of the International Monetary Fund and World Bank Group meetings in Washington. As the two countries proceed with separate bilateral talks on tariffs, the thorny currency rate topic has been set aside for the two finance chiefs to discuss. As a result, the meeting was closely watched by markets as a venue where Washington could pressure Tokyo to prop up the yen and help it reduce the huge U.S. trade deficit. U.S. President Donald Trump's focus on addressing the trade deficit, and his past remarks criticizing Japan for intentionally maintaining a weak yen, have led to market expectations that Tokyo will face pressure to strengthen the yen's value against the dollar and give U.S. manufacturers a competitive advantage. Such expectations have pushed up the yen against the dollar by about 9% since Trump's return to office in January. WARY OF FURTHER YEN GAINS A senior Japanese finance ministry official told reporters on Thursday that no specific date has been set for the next meeting between Kato and Bessent. Kato declined to comment, when asked how Japan would follow up on Thursday's meeting with Bessent, and how the outcome could affect broader trade negotiations with the U.S. Sources have told Reuters that Japanese policymakers see little scope for direct action such as currency intervention or an immediate interest rate hike by the central bank. Japan's latest foray into the exchange-rate market was in 2024, when it bought yen to prop up the currency from a nearly three-decade low of 161.99 to the dollar hit in early July. With broad-based dollar declines already having pushed up the yen to around 142 per dollar, Japanese officials are wary of taking steps to further strengthen the currency for fear of narrowing exporters' margins at a time of tariff strains. The hurdle is even higher to use Japan's monetary policy as a means to prop up the yen. The Bank of Japan is in no mood to rush into hiking rates at a time Trump's tariffs threaten to derail Japan's fragile economic recovery. Speaking in Washington after attending a Group of 20 finance ministers gathering on the sidelines of the IMF meetings, BOJ Governor Kazuo Ueda said on Thursday the central bank will focus on durably achieving its 2% inflation target in making monetary policy decisions. The meeting between Kato and Bessent on Thursday afternoon would be followed by a scheduled visit to Washington by Japan's top trade negotiator Ryosei Akazawa next week for a second round of bilateral trade talks. https://www.reuters.com/business/finance/japan-us-finance-chiefs-meet-talks-currency-rates-2025-04-24/