2025-09-05 11:18

Deported Afghans among thousands left homeless after quakes Survivors struggle as aid is slowed by landslides, lack of funds Returnees face double crisis of lost homes and looming winter MASUD, Afghanistan, Sept 5 (Reuters) - Deported from Pakistan in June, Nazar Shah was struggling to rebuild his life in Afghanistan when it was hit by a midnight earthquake. Six of his relatives were killed, his elderly stepmother was injured and his stone-and-mud home destroyed. Four days on, the 40-year-old Shah and around 20 members of his family sleep under a tarpaulin erected by a river, in the path of possible floods, and experience daily aftershocks. Sign up here. "We have lost our shelter," Shah, a farmer from Masud village in Afghanistan's eastern province of Kunar that borders Pakistan, lamented as pots, bedding and a few bags of wheat lay stacked on wooden beds outside. The poor, war-shattered country ruled by the Taliban has been hit by two earthquakes since midnight Sunday that have together killed more than 2,200 people, injured over 3,600, displaced many more and levelled thousands of houses. A scarcity of resources, a decline in foreign aid since the 2021 Taliban takeover and a slow, meagre helping hand from the rest of the world have made rescue and relief a challenge. The blow is particularly harsh for Afghans such as Shah, who is among hundreds of thousands deported from Pakistan and Iran this year. Pakistan has expelled tens of thousands of Afghans - who had moved to the neighbouring country since the 1980s to escape the cycles of war and deprivation back home - under its Illegal Foreigners Repatriation Plan launched in 2023. Shah said he spent two years in Pakistan with his brothers, digging ditches and working security guard shifts to cover rent and bills. But deportation forced him to return to Masud, where his extended family was crowded into three small rooms. "Life there was not too bad," Shah said when Reuters spoke to him on Thursday. "Even if we had to eat less and buy food on credit, at least we managed." When the quake first struck, he rushed out with his children and livestock but forgot his elderly mother in the chaos. "When I realised, she had already made it some distance, but then a rock fell from the mountain and struck her leg," he said. "It was pitch dark. You couldn't see your own hands." DOUBLE CRISIS Getting relief to victims such as Shah and his family has been slow, aid groups say, with mountain roads blocked by landslides, and funds scarce. The crisis is compounded by the return of Afghans expelled from Iran and Pakistan, who are streaming back into border provinces such as Kunar with little to fall back on. Aid workers say the combination of deportations and disasters is stretching an already fragile relief effort to breaking point. When 30-year-old volunteer doctor Hazrat Gul finally reached Shah's family carrying bandages and medicines from his private pharmacy, his mother Rad Bibi was lying on a latticed rope cot with a wound untreated for four days. "These people are still suffering," said the doctor, who rushed from neighbouring Nangarhar province after burying six of his own relatives killed in the disaster. "If it rains heavily, God only knows what will happen. Tents cannot withstand storms." Driver Jamal Naser, 43, faced a similar fate. He was in the Pakistani capital Islamabad when the tremors hit, and hurried back to Masud leaving his family behind, only to find his house in ruins. Having already been served a deportation notice by Pakistani authorities and a deadline to return to Afghanistan looming, he said he is lost. "With winter approaching, my biggest concern is what I will do," he said. https://www.reuters.com/business/environment/quakes-deal-fresh-blow-poor-afghans-deported-pakistan-2025-09-05/

2025-09-05 11:09

Putin says many dissatisfied with high interest rates Central bank's graph shows economy in recession Putin warns of high inflation's negative impact Putin says Russia can increase deficit, borrow more VLADIVOSTOK, Russia, Sept 5 (Reuters) - President Vladimir Putin denied on Friday that Russia's economy was stagnating, despite a report from the central bank that suggests it is technically in recession. In a speech to an economic forum in the Pacific port of Vladivostok, Putin defended the central bank's use of very high interest rates, currently at 18%, to tackle inflation - a stance fiercely criticised by business leaders and bankers. Sign up here. A graph published in a central bank report this week showed Russia's gross domestic product shrank for two consecutive quarters, a standard definition of what economists call a technical recession. Sberbank CEO German Gref, one of Russia's most powerful bankers, said on Thursday that the economy was in "technical stagnation", and the central bank needed to slash rates. Asked whether he agreed with Gref, Putin said: "No. He knows, we are in constant contact with him. He participates in many of our meetings, which are held, including those with me, with the government, and the central bank." Gref is a long-term associate of Putin and drafted the president's first economic strategy in the early 2000s. The central bank did not elaborate on its graph showing two quarters of shrinking GDP. The statistical agency estimated GDP contraction at 0.6% in the first quarter on a quarterly basis, but has not yet published data for Q2. There is no precise definition for the "technical stagnation" referred to by Gref. Russian news agencies were briefed this week that the economy is projected to grow by 1.2% in 2025, a sharp slowdown from 4.3% in 2024. Growth downgrades and a rising budget deficit form part of a pattern of evidence of the mounting strain on Russia's economy from the 3-1/2 year war in Ukraine. INFLATION "The recession has happened," said economist Evgeny Kogan, commenting on the central bank's graph. He argued that state spending, which stimulated growth in recent years, could not continue without inflation due to capacity constraints. Gref said growth in July and August was close to zero. But Andrei Kostin, CEO of Russia's second largest bank VTB, said he did not see a major deterioration of the economy in the second quarter. "Life has shown that our economy is quite resilient," he told reporters in Vladivostok. Putin linked talk of a stagnating economy to dissatisfaction with high interest rates but said these were needed to tame inflation, adding that Russia's central bank was rated very highly in the international financial community. The central bank hiked the key rate to 21% last year, the highest level since the early 2000s, to bring inflation down. It cut the key rate to 20% in June and then to 18% in July. The bank makes its next rate decision on September 12. Annual consumer price inflation was 8.79% in July, down from 9.40% in June. The central bank expects inflation to slow to its target of 4% in 2026. "If inflation overwhelms the economy, nothing good will come of it because it becomes impossible to forecast anything even for 10 days, let alone for years ahead," Putin said, urging the authorities to ensure a soft landing. Putin ruled out new tax hikes to balance the budget but said Russia had room to increase its budget deficit because its debt burden remains low. Russia has a debt-to-GDP level of around 19%, one of the lowest in the world. But with the budget deficit set to exceed the planned 1.7% of GDP in 2025, the debt is set to increase. (This story has been corrected to fix the time reference in Gref's statement to July and August, not June and July, in paragraph 11) https://www.reuters.com/business/finance/russias-putin-denies-economy-is-stagnating-evidence-suggests-otherwise-2025-09-05/

2025-09-05 10:50

EU seeks to phase out Russian energy imports by 2028 Has pledged to buy more US energy as part of trade deal Hungary and Slovakia oppose ending Russian imports COPENHAGEN, Sept 5 (Reuters) - The European Union would welcome U.S. President Donald Trump's support for its plans to stop buying Russian oil, purchases of which are helping to finance Moscow's war in Ukraine, EU Energy Commissioner Dan Jorgensen told Reuters on Friday. The European Union is negotiating legal proposals to phase out EU imports of Russian oil and gas by January 1, 2028, as it seeks to sever decades-old energy ties with Moscow. Sign up here. U.S. President Donald Trump told European leaders in a call on Thursday that Europe must stop buying Russian oil, a White House official said, as diplomatic efforts to end the fighting drag on. Jorgensen, who is responsible for the EU's energy policies, told Reuters he had not come under pressure from the U.S. administration to halt Russian oil purchases faster than the 2028 deadline, but would welcome U.S. backing for the EU plan. "Not only has Putin weaponised energy against us, blackmailed member states, we are actually also indirectly helping finance Putin's war, and that needs to stop. And if President Trump agrees to that, then that is only a welcome support, because that is certainly our main objective," he said in an interview. Reuters has requested Kremlin comment on the Trump remarks quoted by the White House official. The United States has imposed punitive tariffs on India for its continued purchases of Russian oil, while India has accused the West of hypocrisy. HUNGARY AND SLOVAKIA OPPOSE PHASE-OUT Europe's purchases of Russian gas are expected to shrink to around 13% of its needs this year, from roughly 45% before Russia's full-scale invasion of Ukraine in 2022, according to EU figures. Hungary and Slovakia continue to import Russian crude oil through the Druzhba pipeline, and have opposed the EU's phase-out plan - saying it would hike energy prices. Jorgensen said he was in talks with both governments about their concerns - but that, if needed, EU countries could approve the phase-out plans without them. He declined to confirm if Brussels would offer funding or legal guarantees to attempt to win the two countries' support. "If, for domestic reasons, there are countries that don't feel that they can support it, then this is not something that demands unanimity," Jorgensen said. The EU proposals are designed to be passed by a reinforced majority of member countries. EU diplomats told Reuters they expect countries' energy ministers to approve them at a meeting next month. Jorgensen will hold talks with U.S. energy secretary Chris Wright in Brussels next week, on the EU's pledge to buy $250 billion of U.S. energy supplies per year, as part of the U.S.-EU trade deal. Analysts have said the energy purchase pledge is unrealistically high - in part, because the EU has little control over the energy its companies import. Jorgensen said they would discuss options for how the EU and U.S. administrations can ensure the deal is implemented. For example, the Commission has said it could pool demand from European companies to buy more U.S. gas. "It's clear that our role is to facilitate. The EU is not a gas trader," Jorgensen said. https://www.reuters.com/sustainability/climate-energy/eu-would-welcome-us-backing-quit-russian-oil-energy-chief-says-2025-09-05/

2025-09-05 10:46

LONDON, September 5 (Reuters) - What matters in U.S. and global markets today By Anna Szymanski, Editor-In-Charge, Reuters Open Interest Sign up here. Global equities rose on Friday, supported by growing expectations of a U.S. interest rate cut. All eyes will be on the upcoming U.S. jobs report later today, which could confirm signs of a weakening labour market and reinforce the case for easing by the Federal Reserve. * The STOXX 600 and FTSE 100 gained in early trading as did Asian markets, after the S&P 500 hit another record high yesterday on news that U.S. jobless claims were higher than expected. Traders now appear nearly certain that the Fed will cut interest rates when it has its two-day meeting on September 17. The dollar consequently gave back some of its weekly gains early on Friday. * Long-dated European yields retreated from multi-year highs. They had spiked earlier this week, partly reflecting investor concern about government finances across the pond. UK borrowing costs had hit their highest level since 1998 earlier in the week. * Oil is heading for its first weekly loss in three weeks on concerns about rising supply and weakening demand. Reuters reported on Wednesday that eight members of OPEC+ will consider raising production further at a meeting on Sunday. Meanwhile, U.S. crude inventories rose 2.4 million barrels last week, rather than falling as analysts expected. Today the ROI team will offer you some weekend reading suggestions away from the headlines. Today's Market Minute * President Donald Trump gave Japanese automakers some relief by cutting his high U.S. tariffs on their vehicles, but the reduced levies still mean big pain for Japan's smaller car companies, which will stay under pressure in the crucial market. * Gold prices edged higher on Friday and were on track for their best weekly gain in three months, as expectations of a Federal Reserve rate cut bolstered bullion's appeal, while investors awaited U.S. non-farm payrolls data due later in the day. * Twenty-six nations have pledged to provide postwar security guarantees to Ukraine, which will include an international force on land, sea and in the air, French President Emmanuel Macron said after a summit meeting of Kyiv's allies on Thursday. * Worries over inflation, deteriorating U.S. fiscal health, Federal Reserve independence, and geopolitical instability are raising questions about the stability of long-term Treasuries. In response, many central banks are turning back to that "barbarous relic", gold, writes ROI markets columnist Jamie McGeever. * The $18.7 billion bid by Abu Dhabi National Oil Company (ADNOC) for Australian liquefied natural gas producer Santos is facing a far higher hurdle than just the amount of money on offer. Read the latest from ROI columnist Clyde Russell. Weekend reading suggestions Here are some articles away from the day-to-day headlines that you may find interesting, suggested by the Reuters Open Interest team. Chart of the day Gold is on track for its strongest weekly gain in three months, largely thanks to rising expectations of a Federal Reserve rate cut. ROI markets columnist Jamie McGeever discusses a major milestone for the yellow metal: it now represents a bigger share of central banks' reserves than Treasuries for the first time since 1996. Today's events to watch * U.S August nonfarm payrolls Want to receive the Morning Bid in your inbox every weekday morning? Sign up for the newsletter here. You can find ROI on the Reuters website , opens new tab, and you can follow us on LinkedIn , opens new tab and X. , opens new tab Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles , opens new tab, is committed to integrity, independence, and freedom from bias. https://www.reuters.com/business/finance/global-markets-view-usa-2025-09-05/

2025-09-05 10:36

WARSAW, Sept 5 (Reuters) - The Polish government will extend the cap on electricity prices through the fourth quarter, Energy Minister Milosz Motyka said on Friday, which could remove one inflation risk and boosted market bets on an interest rate cut. Power prices would be frozen at 500 zloty ($137) per megawatt hour in the final three months of the year, Motyka said. Sign up here. Poland's electricity price cap for households expires in October and the central bank has pointed to this as an inflation risk factor and a source of uncertainty. Last month, President Karol Nawrocki vetoed a bill meant to ease rules for building onshore wind farms, which included regulations extending a price freeze. He submitted a draft bill to parliament that included just the government's energy freeze proposal. The government has now prepared a new bill freezing prices in the fourth quarter and included a wage-dependent subsidy to household heating bills starting this year. Motyka said it would pass parliament this month, adding he did not think further energy price freezing would be necessary. "In our opinion, there will be no need to freeze prices because we expect energy prices to fall below 500 zlotys per MWh," he told journalists. Market expectations for interest rate cuts within three months increased slightly following Motyka's statement. "The market is becoming convinced that this reduction can take place," Santander Bank Polska economist Piotr Bielski said. He did not rule out a rate cut in October, but expected rate setters to opt to wait for the central bank's next inflation projection, due in November. Warsaw's utility index (.ENER) , opens new tab outperformed the market, gaining 3.5%. Erste Securities utilities analyst Petr Bartek attributed this to Motyka's comments on electricity prices in 2026 as wholesale market prices fall. "This would be a clear positive move for the sector," he said. ($1 = 3.6405 zlotys) https://www.reuters.com/business/energy/poland-seeks-freeze-fourth-quarter-energy-prices-boosting-rate-cut-hopes-2025-09-05/

2025-09-05 10:29

FTSE 100 up 0.2%, FTSE 250 up 0.3% Ashmore's management fees miss forecasts, shares slide Women's soccer, hot weather boost UK retail sales in July Sept 5 (Reuters) - London shares nudged higher on Friday, led by gains in heavyweight banks and industrials, while investors assessed corporate updates and retail sales data. As of 1012 GMT, the blue-chip FTSE 100 (.FTSE) , opens new tab edged up 0.2% and was on track to log a weekly gain. Sign up here. The domestically focused FTSE 250 (.FTMC) , opens new tab was up 0.3%, but headed towards its second straight weekly decline. In the market, aerospace and defence companies (.FTNMX502010) , opens new tab rose. Babcock (BAB.L) , opens new tab and Melrose Industries (MRON.L) , opens new tab were up about 2.1% each, while Rolls-Royce (RR.L) , opens new tab added 1.1%. Industrial miners (.FTNMX551020) , opens new tab rose, tracking higher copper prices, with Rio Tinto (RIO.L) , opens new tab up 1.5%. Precious metal miners (.FTNMX551030) , opens new tab also advanced. Heavyweight bank stocks (.FTNMX301010) , opens new tab gained 0.7%. Top lenders HSBC (HSBA.L) , opens new tab and Standard Chartered (STAN.L) , opens new tab added 1.7% and 1.3%, respectively. Conversely, consumer staples stocks such as Tesco (TSCO.L) , opens new tab, Unilever (ULVR.L) , opens new tab and M&S (MKS.L) , opens new tab declined. Non-life insurers (.FTNMX303020) , opens new tab declined 1.2%, dragged down by Admiral Group that fell 2.8%, to the bottom of the FTSE 100, after Peel Hunt downgraded the stock to "sell" from "reduce". In corporate updates, Ashmore (ASHM.L) , opens new tab fell 6.5%, to the bottom of the mid-cap index, after the asset manager reported lower-than-expected fee revenue and a dip in profit in its annual results. Concerns over Britain's finances and the government's ability to keep them under control weighed on the markets earlier this week, briefly sending yields on long-dated government bonds to a 27-year high. Investors continue to speculate about tax rises that could dampen economic growth, with Britain set to deliver its budget on November 26. On the data front, retail sales rose more than expected in July, boosted by good weather and the women's European soccer championship, but annual growth was slower than expected after extensive revisions to previous months' data. Investors now await U.S. payrolls data for August, expected at 1230 GMT. Signs of weakness in the report could be crucial for investors who have been pricing in a 25-basis-point Federal Reserve rate cut at its meeting later this month. https://www.reuters.com/world/uk/london-stocks-edge-higher-led-by-industrials-banks-us-jobs-data-focus-2025-09-05/