2025-09-10 07:11
SINGAPORE, Sept 10 (Reuters) - An executive with Thai energy firm Bangchak Corp (BCP.BK) , opens new tab said on Wednesday there is no sign yet of details on the country's mandate for usage of sustainable aviation fuel. The company began production of sustainable aviation fuel (SAF) earlier this year, with capacity to produce 1 million litres per day. Sign up here. "We are in a limbo," Gloyta Nathalang, Bangchak senior executive vice president, said at the APPEC conference. "We have some markets, some agreements," but no details on a mandate, she said. https://www.reuters.com/sustainability/bangchak-still-awaiting-details-thai-sustainable-aviation-fuel-mandate-exec-says-2025-09-10/
2025-09-10 07:03
Gold hit record high of $3,673.95/oz on Tuesday US PPI data due at 1230 GMT Sept 10 (Reuters) - Gold prices rose on Wednesday, holding above the critical $3,600-per-ounce level, buoyed by expectations of a U.S. interest rate cut this month, while key inflation reports due this week were also on investors' radar. Spot gold was up 0.5% at $3,644.54 per ounce, as of 0652 GMT, after hitting a record high of $3,673.95 on Tuesday. Sign up here. U.S. gold futures for December delivery were flat at $3,683. "Sentiment is really bullish. There are several major factors driving gold prices right now. The primary is U.S. rate cut expectations," Capital.com financial market analyst Kyle Rodda said. "The near-term outlook depends a lot on this inflation data. If it comes out a bit spicy, then rate cuts could come out of the curve marginally and spark a pullback in what's a technically overbought market." The U.S. producer price inflation data, due at 1230 GMT, and the consumer price inflation reading on Thursday will be closely watched for more cues on the Federal Reserve's interest rate trajectory. The U.S. economy likely created 911,000 fewer jobs in the 12 months through March than previously estimated, the government said on Tuesday, suggesting that job growth was already stalling before President Donald Trump's aggressive tariffs on imports. U.S. nonfarm payroll data released last week also pointed to weakening labor market conditions, and sealed the case for a rate cut at the Fed's September policy meeting. Markets are fully pricing in a 25-basis-point rate cut, while the likelihood of a larger 50-basis-point cut stands at around 6%, according to CME Group's FedWatch Tool. Gold prices have gained 38% so far this year, following a 27% jump in 2024, bolstered by soft dollar, strong central bank accumulation, dovish monetary settings and heightened global uncertainty. Non-yielding gold typically performs well in a low-interest-rate environment. Elsewhere, spot silver rose 0.6% to $41.14 per ounce. Platinum gained 1.1% to $1,383.90 and palladium was flat at $1,147.98. https://www.reuters.com/world/india/gold-firms-rate-cut-bets-us-inflation-data-focus-2025-09-10/
2025-09-10 06:42
LONDON, Sept 10 (Reuters) - Associated British Foods (ABF.L) , opens new tab said underlying sales at its Primark clothing business are expected to be down around 2% in its second half, with an improved performance in the UK and Ireland offset by a subdued consumer environment in Europe. "Looking ahead, we currently expect the consumer environment to remain uncertain," the group said. Sign up here. It said like-for-like sales for the last six months in the UK and Ireland were expected to be close to flat, helped by favourable weather, and improving from the 6.0% fall recorded in the first half of its financial year. In Europe, while sales rose in Spain, Portugal and in Central and Eastern Europe, they fell in France, Italy and Germany. Primark saw strong sales growth in the United States. The group said in its food businesses, which include grocery brands such as Twinings tea, Jordans cereals and Ovaltine drinks, overall trading in the second half was in line with its expectations. Last month, AB Foods bought the Hovis bread brand. It also said it was closing its Vivergo bioethanol plant after the UK government refused financial support. https://www.reuters.com/business/retail-consumer/primarks-underlying-sales-fall-second-half-weaker-europe-2025-09-10/
2025-09-10 06:38
SOFIA, Sept 10 (Reuters) - Nearly four years after Europe’s energy crisis erupted in late 2021, the continent has moved from emergency response to system redesign. But the European Union is not out of the woods. Deep vulnerabilities persist, and progress toward clean, secure and affordable supply is highly uneven across the continent. The Energy and Climate Security Risk Index , opens new tab (ECSRI), developed by the Center for the Study of Democracy (CSD), measures energy security across four pillars: geopolitics, affordability, reliability and sustainability. Its findings reveal a widening energy security divide between leaders like France, Sweden and Denmark and laggards such as Hungary, Italy and Bulgaria. Sign up here. Europe’s biggest success on the energy security front has been reducing dependence on Russian fossil fuels. Gas imports from Russia have fallen from about 40% of EU supply in 2021 to around 10% in 2025, according to Eurostat. EU members achieved this by boosting purchases from the U.S., Norway and Qatar. Countries such as Italy and Germany that used to be some of the biggest consumers of Russian energy have almost ceased Russian gas imports, but several nations in Central Europe remain highly exposed. Hungary still buys more than three-quarters of its gas from Russia, based on estimates using Eurostat data, and Slovakia remains tied to Russia's Gazprom (GAZP.MM) , opens new tab contracts. New dependencies are also emerging, however. First, the EU now gets much of its liquefied natural gas (LNG) from the U.S., leaving it vulnerable in future negotiations with Washington on trade or other matters. Additionally, Europe’s rapid buildout of solar, wind and battery infrastructure has increased Europe’s reliance on Chinese supply chains. China dominates refining of many critical minerals. It processes , opens new tab over 60% of global lithium, 80% of cobalt, and around 70% of rare earths, all critical for the EU energy sector. Without diversification, Europe risks replacing one dependency with another. Yet Europe is not without options. France has significantly increased its silicon refining capacity for solar manufacturing, while Sweden already supplies up to 90% of the EU’s domestically produced iron ore and is expanding its copper and zinc output. Portugal is developing vast lithium reserves, and Finland hosts major nickel and zinc refineries. In the EU’s neighbourhood, Serbia’s Jadar mine could meet nearly 90% of Europe’s lithium current needs if commissioned, though those needs are expected to rise significantly in the coming years. Ukraine is also believed to hold significant titanium and rare earth deposits, but whether these can be mined and processed profitably remains an open question. AFFORDABILITY CHALLENGES If geopolitics defined energy policy in 2022, affordability is now the central challenge. Affordability risks in Europe have surged fivefold since 2020 largely due to the price shocks following Russia’s invasion of Ukraine. Retail power and gas bills remain 40–70% above pre-crisis levels in Southern and Eastern Europe, with coal-heavy Poland, Bulgaria and the Czech Republic the most vulnerable, based on an analysis of Eurostat data. Nordic countries and France, with less-carbon-intensive systems, face much lower affordability risks. European industry remains under significant pressure due to high energy costs. Between 2021 and 2024, more than 1 million industrial jobs disappeared from Europe, largely due to elevated energy costs. Without long-term clean power contracts and stronger efficiency measures, Europe risks losing competitiveness. RELIABILITY ISSUES The nature of energy reliability risks has also shifted in Europe. In an energy system dominated by fossil fuels, the challenge was securing supply. Today, the problem is that renewables are being rapidly integrated into grids without the infrastructure to underpin them. A clear example of this was the blackout that struck the Iberian Peninsula in April. The sudden loss of 15 gigawatts of solar power overwhelmed systems dominated by inverter-based generation that lacked sufficient backup. Wealthier states like Germany and the Netherlands are investing in digitalised grids, interconnections and storage. However, in Central and Eastern Europe, outdated grids and limited investment leave energy systems exposed to future outages. SUSTAINABILITY GAP On sustainability, the EU has set ambitious goals through the Green Deal, Fit for 55 and REPowerEU. But implementation is uneven across the region. For example, Sweden, Denmark and Finland have combined renewables, industrial decarbonisation and strong governance to reduce their risk here. And France benefits from nuclear power, which has kept a lid on emissions and costs. In contrast, many Central and Eastern members are constrained by legacy infrastructure and weaker governance. In turn, they are seeing both emissions and energy costs rise. Importantly, the ECSRI suggests that energy risks tend to cluster, as countries with high sustainability risks also typically face affordability and geopolitical challenges. Those integrating clean energy, industrial strategy and grid investment are more resilient across the board. The past four years proved Europe can act in crisis, but the next phase of the energy transition will require more than just reactive policy. It will demand a long-term coherent strategy and better coordination across the region – a heavy lift. But the energy security data make one thing clear: without closing the energy policy divide, Europe’s prosperity and sovereignty remain at risk. (The views expressed here are those of Martin Vladimirov, Director of the Geoeconomics Program of the Center for the Study of Democracy (CSD)). Enjoying this column? Check out Reuters Open Interest (ROI), , opens new tab your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI, , opens new tab can help you keep up. Follow ROI on LinkedIn, , opens new tab and X. , opens new tab https://www.reuters.com/markets/commodities/europes-next-big-challenge-is-closing-its-energy-security-divide-2025-09-10/
2025-09-10 06:37
MUMBAI, Sept 10 (Reuters) - The Indian rupee inched lower on Wednesday with focus remaining on U.S. tariffs, while near-term implied volatility hit multi-month lows, signaling that traders see limited risk of a large decline in the Asian currency. The rupee was trading at 88.1250 per U.S. dollar at 12:02 p.m. IST, down from 88.1025 on Tuesday and just 0.2% shy of its record low of 88.36 hit last Friday. Sign up here. The currency in late August weakened past 88 per dollar for the first time, sparking expectations of a sharp fall. That has not materialised so far. An increase in implied volatility after the currency drop has also faded. Typically, when a currency is near all-time lows, traders brace for larger swings and implied volatility tends to rise. The 10-day realized volatility has been holding below 4%. Tracking this relative calm, one-month implied volatility has declined to levels last seen in March. The subdued expectations for near-term swings despite the rupee hovering near lifetime lows reflects in part the stabilizing role of the Reserve Bank of India's intervention, bankers say. Corporates have been steadily selling volatility, "and RBI has done an excellent job in managing spot," an FX derivatives trader at a private sector bank said, "That is why implied volatility keeps falling." ALL ABOUT TARIFFS Rupee traders are squarely focused on U.S.-India trade relations, a key driver for the currency’s near-term direction. On this front, developments offered a mix of positive and negative signals. U.S. President Donald Trump said on Truth Social that Washington and New Delhi are continuing negotiations to address trade barriers, expressing confidence in a successful outcome. At the same time, he pushed the European Union to impose tariffs of up to 100% on India over their purchases of Russian oil, a move that could add fresh pressure on the rupee. https://www.reuters.com/world/india/rupee-drifts-lower-volatility-hits-multi-month-lows-2025-09-10/
2025-09-10 06:34
Israeli strike on Hamas leadership in Qatar supports prices Trump asks EU to put tariffs on China, India to pressure Russia Possibility of secondary tariffs spurs supply concerns Longer-term outlook still for oversupply as OPEC+ ups production BEIJING, Sept 10 (Reuters) - Oil prices rose on Wednesday after Israel attacked Hamas leadership in Qatar and U.S. President Donald Trump asked Europe to impose tariffs on buyers of Russian oil buyers, though a weak market outlook capped further gains. Brent crude futures were up 61 cents, or 0.92%, at$67 a barrel, as of 0620 GMT, and U.S. West Texas Intermediate crude futures gained 61 cents, or 0.97%, to $63.24 a barrel. Sign up here. "The current uptick in oil prices has been primarily attributed to an increase in geopolitical risk premiums after Israel's unprecedented strike in Doha," said Kelvin Wong, senior market analyst at OANDA. "This increases the fears of a short-term supply crunch if OPEC+ members' oil production facilities are hit by Israel." Prices had settled up 0.6% in the previous trading session after Israel said it had attacked Hamas leadership in Doha, which Qatar's prime minister said threatened to derail peace talks between Hamas and Israel. The oil price reaction was relatively muted due to overall market weakness. Both benchmarks rose nearly 2% shortly after the attack, but retreated after the U.S. assured Doha that such an incident would not recur on its soil and because there was no immediate impact on supply. "The modest reaction in crude oil prices to this news, along with scepticism regarding U.S. President Trump's claims about potentially ramping up sanctions on Russian oil ... leaves crude oil vulnerable to lower prices," IG market analyst Tony Sycamore said in a note. Trump has urged the European Union to impose 100% tariffs on China and India as a strategy to pressure Russian President Vladimir Putin, according to sources. China and India are major buyers of Russian oil, which has helped to support Russia's coffers since it launched its invasion of Ukraine in 2022, despite heavy sanction pressure from the U.S. "The expansion of secondary tariffs to other major buyers such as China could disrupt Russian crude exports and tighten global supply, a bullish signal for oil prices," LSEG analysts wrote. "However, uncertainty remains over how far the administration will go, as aggressive action could conflict with efforts to manage inflation and influence the Federal Reserve to reduce interest rates." Traders expect the Federal Reserve to cut interest rates in its meeting next week, which would boost economic activity and demand for oil. But the supply outlook remains bearish. The U.S. Energy Information Administration cautioned global crude prices will be under significant pressure in the coming months because of rising inventories as OPEC+ increases output. https://www.reuters.com/business/energy/oil-prices-rise-after-israeli-attack-qatar-trumps-russia-tariff-push-2025-09-10/
