2025-02-21 06:08
Feb 21 (Reuters) - The European Union should reject European automakers' push to weaken 2025 CO2 car emission targets and related fines, two European electric transport groups wrote in a letter to European Commission President Ursula von der Leyen on Friday. The letter, seen by Reuters, said the EU executive, which will present auto sector plans on March 5, should not accept slower phasing in of emission targets or basing fines on a multi-year average and that any fines should go to subsidise the bloc's transition to electric vehicles (EVs). EU carmakers, which are struggling to compete with Chinese rivals and bracing for U.S. tariffs, are urging the Commission to grant relief from fines they say could rise to 15 billion euros ($15.7 billion) if their fleets do not meet CO2 emission limits in 2025. Any flexibility that pushes back the 2025 CO2 limits will only put Europe further behind China in EVs and have a chilling effect on EU investment plans in charging infrastructure, battery development and manufacturing, the letter from E-Mobility Europe and ChargeUp Europe said. E-Mobility Europe represents EV makers, supply chain companies, fleet owners and infrastructure providers, while ChargeUp Europe focuses on the EV charging industry. Tesla (TSLA.O) , opens new tab is a member of both. EU automakers say the problem they face is a shortage of demand, due in part to consumer concerns about inadequate charging infrastructure. Aurelien de Meaux, chief executive of charging company Electra, said this was a false narrative and that EU charging stations could accept five to seven times more vehicles without being saturated and that his sector was investing billions of euros in infrastructure expansion. "It would be a disaster to backpedal on policy," he said. The groups said in the letter that the 2025 CO2 targets are achievable, pointing to 11 new models priced under 25,000 being launched and January 2025 EV sales up 40% year-on-year. De Meaux also said the 15 billion euro fine figure was based on sales in the first six months of 2024 and so wrong. He said projections pointed to fines of perhaps 4-6 billion euros, which could be halved through trading credits with other companies. The groups support targets or incentives for corporate fleets to electrify, given they make up about 60% of new car sales. ($1 = 0.9564 euros) Sign up here. https://www.reuters.com/business/autos-transportation/electric-transport-groups-urge-eu-not-ease-co2-emission-rules-2025-02-21/
2025-02-21 05:45
MUMBAI, Feb 21 (Reuters) - The Indian rupee trimmed its early gains to trade little changed on Friday as positive global cues were offset by dollar demand from local importers, including oil companies. Meanwhile, dollar-rupee forward premiums nudged up, aided by a dip in U.S. bond yields. The rupee was at 86.6325 as of 11:00 a.m. IST, up slightly from its close at 86.66 in the previous session. The currency rose to as much as 86.4850 in early trading. The dollar index was at 106.4 after touching a two-month low on Thursday while most Asian currencies were higher between 0.1% and 0.2%. The rupee is expected to gain towards 86.20 "in a slow and steady manner as long positions (on USD/INR) are cut," said Anil Bhansali, head of treasury at Finrex Treasury Advisors. The Reserve Bank of India would be satisfied with the fall in the rupee's real effective exchange rate (REER) in January 2025 and may allow some more appreciation, he said. Central bank data released on Wednesday showed the rupee's 40-currency REER eased to 104.8 in January from 107.1 in December, signalling the overvaluation against currencies of India's major trading partners narrowed. While the rupee was gripped by a stern depreciation bias earlier in February, firm intervention by the central bank helped alleviate the pressure, which has reflected in a decline of the cost of hedging for a weaker rupee. Dollar-rupee far forward premiums ticked up on Friday with the 1-year implied yield up 2 basis points to 2.14% on the back of a decline in near-tenor U.S. Treasury yields. Investors await the release of the minutes of RBI's February policy meeting, where the central bank announced its first rate cut in nearly five years. The minutes are due after market close. Sign up here. https://www.reuters.com/markets/currencies/rupee-runs-into-importer-dollar-bids-forward-premiums-tick-up-2025-02-21/
2025-02-21 05:36
Gold up nearly 2% for the week, hit record high on Thursday Silver, palladium set for weekly gains, platinum eyes fall Feb 21 (Reuters) - Gold prices eased on Friday as investors booked profits from the previous session's record high, but were set for an eighth straight weekly gain, driven by strong safe-haven demand amid concerns over U.S. President Donald Trump's tariff plans. Spot gold shed 0.1% to $2,939.63 an ounce as of 02:24 a.m. ET (1924 GMT). Bullion has gained around 1.9% this week after rising to a record $2,954.69 on Thursday. U.S. gold futures settled 0.1% lower at $2,953.20. "It's just a classical movement of new all-time highs and profit-taking... (but) the fundamentals for gold remain solid," said Alex Ebkarian, chief operating officer at Allegiance Gold. Prices have shattered two record highs this week to trade above $2,950 an oz, as uncertainties surrounding global economic growth and political instability have underscored investor appetite for bullion, which has risen 11.5% so far in 2025. "Demand for gold is currently being driven primarily by western investors and central banks. ETF investors appear to be jumping on the bandwagon," Commerzbank analysts said in a note. Trump's fresh bout of tariff plans announced earlier this week includes duties on lumber and forest products, on top of previously announced plans to impose duties on imported cars, semiconductors and pharmaceuticals. This comes after the imposition of an additional 10% tariff on Chinese imports and a 25% tariff on steel and aluminium. Gold's safe-haven role is not fully realized yet as the shift from riskier assets to safer ones is not significant, with money still on the sidelines, Ebkarian said. Investors are also monitoring the U.S. Federal Reserve's interest rate trajectory for clues, given that Trump's policies are viewed as inflationary. Higher inflation could compel the Fed to maintain high interest rates, thus reducing the allure of non-yielding gold. Spot silver was down 0.9% at $32.64 an ounce and palladium dipped 0.7% to $970.45. Both metals were headed for weekly gains. Platinum shed 1.1% to $967.40 and eyed a weekly decline. Sign up here. https://www.reuters.com/markets/commodities/gold-set-eighth-weekly-gain-tariff-threats-boost-safe-haven-demand-2025-02-21/
2025-02-21 05:34
A look at the day ahead in European and global markets from Rae Wee Friday brings a slew of purchasing managers' index (PMI) readings as investors in Germany count down to a general election on Sunday following the collapse of Chancellor Olaf Scholz's three-way coalition. The euro zone and Britain get February PMI figures ahead of the U.S. later in the day, which could start to show the impact of U.S. President Donald Trump's tariffs as businesses rushed to get orders out before they feel the blow of import duties. Euro zone PMIs are expected to show a further expansion in growth, helped by a pick up in services and an easing of the long-running downturn in manufacturing. The focus in U.S. figures will be whether the manufacturing sector's recent rebound into expansion is being sustained. The UK is also due to release January retail sales data later in the day, with markets betting shoppers loosened their purse strings a bit last month after retail sales unexpectedly fell in December. A survey published on Friday showed British consumers turned a little less pessimistic this month as the Bank of England's latest interest rate cut led to an improvement in expectations for their household finances. Sunday's German election may result in a conservative-led coalition government that faces pressure for much-needed change to revive the stagnant economy - and moves to block reform by populist parties if they do well. The conservative CDU/CSU bloc led by Friedrich Merz is tipped to win by polls but it will need a partner - or possibly two - to govern. Ahead of the weekend, the euro was steady at $1.0501, helped by a weaker dollar that was on track for its third straight weekly loss. In Asia on Friday, MSCI's broadest index of Asia-Pacific shares outside Japan struck a three-month high, boosted by a rise in Chinese stocks amid enthusiasm over technology and artificial intelligence (AI) companies there. Hong Kong's Hang Seng Index (.HSI) , opens new tab surged to a three-year peak and the Hang Seng Tech Index (.HSTECH) , opens new tab is up nearly 30% so far this year, against a 4% rise in the S&P 500. Investment banks have in recent days also turned more bullish on the case for investing in China, which would mark a significant change in mindset after years of pessimism. Key developments that could influence markets on Friday: - Euro zone, UK, U.S. preliminary PMI readings (February) - UK retail sales (January) - Federal Reserve Vice Chair Philip Jefferson speaks - European Central Bank board member Philip Lane speaks Sign up here. https://www.reuters.com/markets/europe/global-markets-view-europe-2025-02-21/
2025-02-21 05:11
Brent and WTI post weekly decline Analysts point to media reports on new coronavirus discovery Analysts view fading risk premium as Gaza ceasefire holds US crude stocks rose, gasoline and distillates decline, EIA U.S. energy firms add oil and natural gas rigs, Baker Hughes Kazakh oil output at record high after pipeline damage in Russia HOUSTON, Feb 21 (Reuters) - Oil prices settled down more than $2 a barrel on Friday, posting a weekly decline as investors grappled with a fading Middle East risk premium alongside uncertainty about a potential peace deal in Ukraine. Brent futures settled down $2.05, or 2.68%, to $74.43 a barrel, while U.S. West Texas Intermediate crude settled down $2.08, or 2.87%, to $70.40. Brent closed 0.4% lower on the week, while U.S. crude futures posted a 0.5% weekly loss. The relative calm in the Middle East as the Gaza ceasefire held has reduced risk in the market, said John Kilduff, a partner at Again Capital in New York. Later in the day, analysts also pointed to media reports indicating that researchers at the Wuhan Institute of Virology in China said they discovered a new coronavirus in bats. Oil first slipped around $2 a barrel when those reports surfaced, according to analysts. Investors also continued to weigh an uptick in U.S. crude oil stockpiles, reported on Thursday, as seasonal maintenance at refineries led to lower processing, the Energy Information Administration said. U.S. energy firms this week added oil and natural gas rigs for a fourth week in a row to the highest level since June, energy services firm Baker Hughes (BKR.O) , opens new tab said in a report on Friday. The oil and gas rig count, an early indicator of future output, rose by four to 592 in the week to February 21. Traders kept an eye on potential oil supply disruptions, however, which capped some losses. Russia said Caspian Pipeline Consortium oil flows, a major route for crude exports from Kazakhstan, were reduced by 30-40% on Tuesday after a Ukrainian drone attack on a pumping station. Oil flows from Kazakhstan's Tengiz oilfield via CPC are uninterrupted, Russian news agency Interfax reported on Friday, citing Tengizchevroil. Kazakhstan has pumped record high oil volumes despite damage to its CPC export route via Russia, industry sources said on Thursday. It was not immediately clear how Kazakhstan had been able to pump record volumes. ALL EYES ON UKRAINE The Ukrainian drone attack helped support crude prices this week, said Alex Hodes, analyst at StoneX in a note on Friday, also pointing to analysts' expectation that OPEC+ will delay its production cut once again, in light of crude prices remaining below $80/bbl. Elsewhere, relations between Ukraine President Volodymyr Zelenskiy and U.S. President Donald Trump deteriorated this week after Zelenskiy criticised U.S. and Russian moves to negotiate a peace deal without Kyiv's involvement. The rift was widened by Trump comments blaming Ukraine for starting the three-year-old conflict. Yet after a meeting with Trump's envoy for the Ukraine conflict on Thursday, Zelenskiy said Ukraine was ready to work quickly to produce a strong agreement with the U.S. on investments and security. "Trump keeps hammering Ukraine and the market is taking that as a potential easing of sanctions on Russia, and Russian oil flows coming back to the market," said Again Capital's Kilduff. Sign up here. https://www.reuters.com/business/energy/oil-extends-gains-strong-us-demand-hopes-russia-supply-concerns-2025-02-21/
2025-02-21 04:14
BEIJING, Feb 21 (Reuters) - Iron ore futures prices climbed on Friday to their highest levels in more than four months and headed for a weekly gain, as signs of recovery in steel consumption brightened demand outlook in top consumer China, where hopes of more stimulus revived. The most-traded May iron ore contract on China's Dalian Commodity Exchange (DCE) ended daytime trade 1.51% higher at 838.5 yuan ($115.75) a metric ton after touching the highest since October 8, 2024, at 844 yuan a ton earlier in the session. The benchmark March iron ore on the Singapore Exchange added 0.06% to $108.75 a ton by 0711GMT, after hitting the highest since October 8, 2024, at $109.3. Both benchmarks posted rises of around 3% so far this week. Downstream steel consumption has shown signs of picking up with transaction volumes of construction steel products jumping by 44% on the week to 112,600 tons on Thursday, data from consultancy Mysteel showed, supporting ore prices. "Expectations of growing rebar demand strengthened amid the upcoming peak construction season (in March) with the weather getting warm," analysts at COFCO Futures said in a note. Also buoying sentiment was China's central bank, which vowed on Thursday to provide strong financial support for the healthy development of private economy and the growth of private enterprises. However, the average daily hot metal output, a gauge of iron ore demand, slipped for a second straight week by 0.2% from the prior week to 2.28 million tons as of February 20, the Mysteel survey showed, limiting gains. Other steelmaking ingredients on the DCE gained, with coking coal and coke up 2.12% and 1.77%, respectively. Most steel benchmarks on the Shanghai Futures Exchange advanced. Rebar rose 0.9%, hot-rolled coil edged up 0.81%, stainless steel ticked 0.38% higher while wire rod shed 0.17% . "Given that there might be policies to stabilise economic growth unveiled in March, we expected steel prices to remain resilient until mid-to-late March," COFCO's analysts added. ($1 = 7.2440 Chinese yuan renminbi) Sign up here. https://www.reuters.com/markets/commodities/iron-ore-heads-weekly-gain-brightening-demand-outlook-china-stimulus-hopes-2025-02-21/
