2025-09-11 18:55
Southwest considers wide-body aircraft for long-haul international routes New premium lounges to boost loyalty revenue and credit card appeal Southwest's margins lag behind Delta and United Airlines CHICAGO, Sept 11 (Reuters) - Southwest Airlines (LUV.N) , opens new tab CEO Bob Jordan said on Thursday the company is looking at long-haul international flights and premium airport lounges as part of its turnaround strategy. Jordan said while the company will have to look at a wide-body aircraft for long-haul international service, it could use a "more risk-tolerant" approach at first and choose a narrow body to serve those routes. Sign up here. The Dallas-based carrier, which operates mostly domestic flights with a fleet of Boeing 737 jets, has been struggling to find its footing after the COVID-19 pandemic. Its lackluster earnings have fueled pressure to revamp its business model. It has begun charging customers for checked bags, ending a free policy. It has also rolled out a new basic-economy fare and would switch to a new assigned seat policy in January, replacing its previous open seating model. In the past, Jordan has talked of the company's aspirations to launch flights to Europe. Industry experts say a lack of long-haul international flights limits Southwest's appeal to customers and has deprived the airline of a high-margin revenue stream. Since February, Southwest has launched partnerships with foreign carriers Icelandair, China Airlines, and EVA Air to broaden its network. The company has said it is exploring new partnerships from all parts of the globe. But Jordan said the company wants to serve long-haul international routes itself. "We want to serve those destinations as well," he told a Morgan Stanley conference, adding the plans were still in the initial stages. Southwest once boasted a record 47 consecutive years of profit prior to the pandemic. Since then, it has struggled to regain sustained profitability. Its margins currently pale in comparison with those of rivals Delta (DAL.N) , opens new tab and United Airlines (UAL.O) , opens new tab. Many of Southwest's recent pivots are aimed at wooing high-spending travelers. Jordan said the company ends up losing customers to other carriers because it currently does not fly to destinations like London or have premium airport lounges. He said the lounges are also expected to drive up the company's loyalty revenue as they would make its co-branded credit cards more attractive to customers. "If we're going to continue to drive relevance, even as the largest domestic carrier, we've got to continue to meet the needs of our customers," Jordan said. https://www.reuters.com/business/southwest-airlines-eyes-long-haul-flights-strategic-overhaul-2025-09-11/
2025-09-11 18:45
US consumer prices increase more than expected in August US weekly jobless claims increase as labor market softens Bullion hit a record high of $3,673.95 on Tuesday Fed set to announce its next policy decision on Sept. 17 Sept 11 (Reuters) - Gold prices pared losses on Thursday, holding at near-record highs as soft U.S. jobs data outweighed concerns from firmer inflation data, with investors still betting on the Federal Reserve easing interest rates next week. Spot gold was down 0.2% at $3,632.49 per ounce, as of 2:20 p.m. EDT (1820 GMT). Bullion had hit a record high of $3,673.95 on Tuesday. U.S. gold futures for December delivery settled 0.2% lower at $3,673.60. Sign up here. Prices were down as much as 0.6% before the U.S. economic data. "Gold is being 'saved' by the sharp jump in weekly initial jobless claims, which hit a three-year high at 263,000 while core CPI remains elevated at 0.3% month-on-month," said Tai Wong, an independent metals trader. Recent price movements point to some buyer fatigue, but gold's outlook over the next few months remains constructive, limiting the scope for a significant pullback, Wong added. U.S. consumer prices rose more than expected in August, recording the largest annual increase in seven months, while weekly jobless claims also jumped sharply, highlighting softening labor market conditions. Data on Thursday showed U.S. producer prices unexpectedly declined in August, reflecting weaker trade services margins and muted goods costs. Coupled with last week's soft nonfarm payrolls, along with revisions that revealed 911,000 fewer jobs in the 12 months through March, the figures pointed to cooling underlying momentum in the economy and added weight to expectations for Fed easing. Markets are fully pricing in a 25-basis-point cut at the Fed's policy meeting next Wednesday, with a slim chance of a half-point cut, CME FedWatch data , opens new tab showed. The central bank paused its easing cycle in January as it weighed the inflationary impact of tariffs. The yellow metal has climbed 38% so far this year and is often seen as thriving in lower-rate settings, valued by investors as a hedge against inflation and broader uncertainty. Slowing growth, elevated inflation, geopolitical shifts and diversification away from U.S. assets and the dollar will continue to underpin investment demand and central bank buying, supporting gold, ANZ said in a note. Elsewhere, spot silver was up 1% at $41.57 per ounce. Platinum fell 0.3% to $1,382.25 and palladium gained 1.5% to $1,191.46. https://www.reuters.com/world/india/gold-pares-losses-labor-market-weakness-bolsters-fed-easing-expectations-2025-09-11/
2025-09-11 17:59
Wright promotes fossil fuels as key to stable energy Trump administration's stance contrasts with global climate goals Environmentalists urge focus on cleaner energy alternatives BRUSSELS/WASHINGTON, Sept 11 (Reuters) - U.S. Energy Secretary Chris Wright downplayed the risks of climate change as he promoted Washington's return to a "commonsense energy policy" on Thursday, while the Trump administration worked to boost oil and gas sales to Europe and other allies. Wright spoke to reporters after meeting the European Union's energy commissioner Dan Jorgensen in Brussels. U.S. Interior Secretary Doug Burgum has also been in Europe this week aiming to seal energy supply deals that Washington hopes will strengthen its influence in the region while weakening Russia's. Sign up here. Wright said the benefits of stable energy from fossil fuels offset any risks, adding that the rise of natural gas production was the "biggest driver of decarbonisation" in the United States, which is rolling back on renewables projects such as offshore windfarms. His comments reflect the degree to which the Trump administration is at odds with the United Nations, global scientists and the EU, which has put emissions targets at the heart of policy-making. Natural gas burns cleaner than coal but still produces significant carbon emissions from smokestacks, and methane, a potent greenhouse gas, from leaks. Wright questioned the urgency of climate change and its impact on human life. "We kind of struggle to find what is it from climate change that's causing greater risks to humans," he said. "A warmer, wetter world is more conducive to growing crops." Despite global evidence to the contrary, Wright said there was no upward or downward trend in the frequency of extreme weather events, and that protections offered by petrochemicals, such as clothing and heating, meant deaths from such events had fallen over time. More than 100 people including children at a summer camp died during catastrophic flooding in Texas after extreme rain in July. Climate scientists have warned the risk of extreme rain is increasing due to warming global temperatures. Reinsurance company Swiss Re (SRENH.S) , opens new tab said in an April report that total losses from natural catastrophes - not all climate related - and including those not covered by insurance, came in at $318 billion in 2024 up from $292 billion in 2023 and significantly above longer-term averages. The report said the effects of climate change played a role in "compounding losses". "The impact of hydrocarbons, I would say, has been massively larger at making safer, longer, healthier lives. It's causing some warming, but is the net impact of hydrocarbon consumption to endanger humans?" Wright added. David Doniger, a senior attorney at New York-based environmental group the Natural Resources Defence Council, said the secretary should lead the way to an abundance of cleaner energy that can meet economic objectives without destroying the climate. "The secretary of energy should not be a salesman for one kind of energy, either to Americans or to the rest of the world," Doniger added. https://www.reuters.com/sustainability/cop/us-energy-secretary-downplays-climate-risks-washington-seeks-eu-gas-deals-2025-09-11/
2025-09-11 17:45
Lagarde says euro zone bond market is orderly Stresses countries must stick to budget rules FRANKFURT, Sept 11 (Reuters) - European Central Bank President Christine Lagarde signalled no rush on Thursday to intervene in the bond market to support France, which has become engulfed in a political and budget crisis. France's political instability and its failure to tackle ballooning public debt have unnerved investors, who have been demanding a growing premium to lend to the French government in the bond market. Sign up here. The ECB has the power to step in and buy government bonds to stem an "unwarranted, disorderly" rise in borrowing costs under its Transmission Protection Instrument, as long as a country complies with the European Union's budget rules. LAGARDE SAYS RESPECT EU BUDGET RULES Lagarde appeared to play down the prospect of an intervention, saying the euro zone bond market was still functioning well and all countries needed to respect the EU fiscal framework. "Euro area sovereign bonds are orderly and are functioning smoothly with good liquidity," Lagarde, a former French finance minister, told reporters after the ECB decided to keep rates steady. French Prime Minister Francois Bayrou's government fell earlier this week after he failed to secure parliamentary support for his plans to reduce the budget deficit, which last year was nearly double the EU's 3% of GDP limit. France is the EU's second-largest economy. Its budgetary and political crisis threatens to weaken the bloc, politically and economically, just as it tries to navigate U.S. trade tariffs. Stressing she was talking about the euro zone as a whole and not just France, Lagarde said that the ECB needed "a well-functioning" bond market to control inflation. But she added governments must stick to EU rules. "There is also a set of rules... and the member states have to adhere to it," she said. "I'm sure that all governments, wherever located, will want to operate on the basis of that fiscal framework." INVESTORS DEMAND SIMILAR PREMIUM FROM FRANCE AND ITALY France's public debt has climbed to 113.9% of gross domestic product, in part due to successive governments' largesse during the COVID-19 and cost-of-living crises. Investors are now demanding a similar premium - as measured by the spread over Germany's 10-year bond yields - from France as from Italy at around 80 basis points. Bayrou has been replaced by Sebastien Lecornu, a loyalist of President Emmanuel Macron and his fifth prime minister in less than two years. "I'm confident that the policymakers... will take it to heart in that period of uncertainty to reduce uncertainty as much as possible," Lagarde said. A debt crisis centred around Greece nearly brought down the euro in the 2010s before then ECB President Mario Draghi pledged to do "whatever it takes" to preserve the single currency - an implicit reference to buying bonds. ECB board member Isabel Schnabel told Reuters last week that France needed to consolidate its finances and foster potential growth but she did not see these issues as having wider implications for the euro. https://www.reuters.com/business/finance/ecbs-lagarde-signals-no-rush-rescue-france-bond-market-2025-09-11/
2025-09-11 17:25
SAO PAULO, Sept 11 (Reuters) - Global agricultural machinery manufacturer Deere & Co.'s (DE.N) , opens new tab sales in Brazil could fall by a single-digit percentage in 2026 amid global uncertainties related to U.S. President Donald Trump's tariffs and high interest rates in the South American country, an executive said on Thursday. "Today, a positive scenario would be (like) 2025, but (sales are) likely to decline," Antonio Carrere, vice president of sales and marketing at the company's Brazil unit, told Reuters on the sidelines of an industry event, adding that a 5% or 6% decline was possible. Sign up here. Deere & Co., maker of the green and yellow John Deere tractors, reported a drop in third-quarter profit in August and warned of a bigger hit from Trump's tariffs than it had previously expected. The company does not publicly disclose a sales breakdown by country or region, Carrere said, adding that global sales are $55 billion. The executive mentioned Brazil's high financial cost, citing interest rates sometimes reaching 18%, describing them as "making things difficult for the client." He also mentioned political tension related to the trial of former President Jair Bolsonaro at Brazil's Supreme Court, as well as testy relations between Trump and Brazilian President Luiz Inacio Lula da Silva. "Agribusiness is an industry of high and long-term investments. The moment I have uncertainties in the mix, it creates discomfort for the client," he said. "It's getting worse. How bad will it get? Only time will tell." https://www.reuters.com/world/americas/deere-co-brazil-sales-could-fall-amid-global-trade-tensions-executive-says-2025-09-11/
2025-09-11 17:22
ECB holds rates at 2%, lowers inflation projections Fed set to resume easing next week, Trump calls for more Markets suspect Switzerland unlikely to take rates negative LONDON, Sept 11 (Reuters) - The U.S. Federal Reserve is an outlier among central banks in developed markets, as it looks set to resume rate cuts just as many of its peers are reaching the end of their easing cycles. The European Central Bank (ECB) left rates unchanged on Thursday, while Japan is expected to hike rates before the year is out. Sign up here. Here's where 10 major central banks stand: 1/ SWITZERLAND The Swiss National Bank meets on September 25. After it cut its key rate to 0% in June, investors have pondered whether a return to negative territory is likely. Chairman Martin Schlegel said this week that the bar is high but he does rule out such a move. Inflation holding above the bottom of the SNB's 0-2% target band in August means traders do not anticipate negative rates at the current time. 2/ CANADA A weak economy due to U.S. tariffs, unemployment at a four-year high and lower inflation put pressure on the Bank of Canada to resume rate cuts next Wednesday. The BoC has cut rates by 225 basis points (bps) since June 2024 but held steady since March. Markets price in roughly two more 25 bp rate cuts by January. 3/ SWEDEN Sweden's Riksbank has also cut rates substantially, despite sticky core inflation, but looks set to remain on hold on September 23. Its deputy governor says that latest figures show growth and inflation moving in the right direction. 4/ NEW ZEALAND Domestic and global growth headwinds could pave the way for the Reserve Bank of New Zealand to cut rates in October and probably once more by year-end, a Reuters poll of economists shows. The RBNZ cut its policy rate by 25 bps to a three-year low of 3% last month. 5/ EURO ZONE The ECB held its key rate at 2% on Thursday and said that it now sees inflation at 1.9% in 2027, below the 2% target. Markets think it is possible the ECB could cut rates again, putting the chances of that happening by mid-2026 at around 50%. The ECB halved its the rate to 2% in the year to June but has been on hold ever since, saying the euro zone economy is in a "good place". 6/ UNITED STATES The Fed looks set to cut rates by 25 bps next week, having been on hold all year on concerns about the inflationary impact of tariffs. Weakening jobs data means a rate cut is now fully baked in and some banks do not rule out a bigger 50 bp cut. In total, nearly 70 bps of cuts are priced in by year-end. President Donald Trump has repeatedly urged the Fed to cut rates more. Investors are also watching the fate of Fed governor Lisa Cook whom Trump has moved to fire. A federal judge on Tuesday temporarily blocked this. 7/ BRITAIN The Bank of England meets next Thursday and traders see no change to borrowing costs or any further easing this year. Analysts have also pushed back BOE rate-cut expectations, citing stubborn inflation, the highest among the Group of Seven advanced economies. The BoE cut rates by 25 bps in August, its fifth move this cycle. 8/ AUSTRALIA The Reserve Bank of Australia has cut rates by 75 bps since February, though strong second-quarter GDP data means markets have pared back bets on more easing. Traders price in one more 25 bp cut this year, and another in early 2026. 9/ NORWAY Norges Bank has made just one 25 bp rate cut this cycle. Markets see one more cut this year, most likely next week, though hot underlying inflation data on Wednesday has called this into question. 10/ JAPAN The Bank of Japan, the sole major central bank in tightening mode, has had its task complicated by Prime Minister Shigeru Ishiba's resignation. The uncertainty leaves the central bank almost certain to hold rates next week, and makes an October hike harder, though they could still squeeze one in by year-end. Also watch next week whether the BOJ reduces its purchases of super-long-dated government bonds. https://www.reuters.com/business/finance/global-markets-cenbank-graphic-2025-09-11/
