2025-09-04 11:26

BERLIN, Sept 4 (Reuters) - The European Commission is providing a 645 million euro ($755.10 million) grant for a renewable energy cluster near Bornholm in the Baltic Sea, Germany's economy ministry said Thursday, a major step towards the creation of a cross-border offshore hub. Danish transmission system operator Energinet and its German counterpart 50Hertz signed the funding contracts in Berlin, granted under the EU's Connecting Europe Facility (CEF). Sign up here. The Bornholm Energy Island will link a 3 gigawatt (GW)offshore wind farm in the Baltic Sea to both the Danish and German power grids, providing up to 2 GW of electricity to Germany and 1.2 GW to Denmark starting in the 2030s. ($1 = 0.8542 euros) https://www.reuters.com/sustainability/boards-policy-regulation/eu-grants-755-mln-eur-bornholm-offshore-energy-hub-german-economy-ministry-2025-09-04/

2025-09-04 11:25

NEW DELHI, Sept 4 (Reuters) - India's decision to cut taxes on solar and wind equipment will lower costs for new plants and pressure existing project developers to reduce tariffs, accelerating the country's shift to renewable energy, industry experts said. The government on Wednesday slashed the goods and services tax (GST) on solar photovoltaic modules and wind turbine generators to 5% from 12%, part of broader tax cuts on hundreds of consumer items. Sign up here. The tax cut for solar PV modules and wind turbine generators is expected to reduce the capital cost for solar and wind power projects by about 5%, said Girishkumar Kadam, Senior Vice President & Group Head, ICRA Ltd. India, which aims to expand its non-fossil fuel capacity to 500 GW by 2030, currently has about 44 GW of renewable projects awaiting firm power supply agreements. The tax change poses “a few short-term challenges” as projects awarded before the cut may require renegotiation of existing power supply contracts, said Saurabh Agarwal, tax and new energy partner at EY India. Oyster Renewable Energy said the lower tax rate would allow developers to re-engage with utilities at more competitive tariffs, potentially unlocking stuck projects. Developers that have not yet procured equipment will likely need to pass on the tax benefit to consumers through lower tariffs, while those that already paid the higher rate can justify existing tariff agreements by providing documentation to the federal regulator, said Sanjeev Aggarwal, founder and executive chairman of Hexa Climate Solutions. Solar equipment maker Waaree Energies (WAAN.NS) said it would pass on the benefits to customers. https://www.reuters.com/sustainability/boards-policy-regulation/indias-tax-cut-solar-wind-devices-lower-clean-energy-tariff-experts-say-2025-09-04/

2025-09-04 11:24

Central bank rates too high, Gref says Sberbank CEO says the economy is stagnating Says growth close to zero in August and July Economy minister says some machine-building enterprises have switched to four-day week VLADIVOSTOK, Russia, Sept 4 (Reuters) - Sberbank CEO German Gref, one of Russia's most powerful bankers, warned on Thursday that the economy was stagnating and that unless the central bank slashed interest rates then the country would fall into recession. Russia's war economy grew at 4.1% in 2023 and 4.3% in 2024, far faster than G7 countries, despite multiple rounds of Western sanctions imposed after its invasion of Ukraine in 2022, but it is slowing sharply under the weight of high interest rates. Sign up here. Russia's highest military spending since the Cold War has stoked inflation, which prompted the central bank to raise its key interest rate to 21% in October, the highest level since the early years of President Vladimir Putin's rule in 2003. The central bank cut to 20% in June and then to 18% in July, but there have been a series of warnings from senior officials about the fate of the economy, which they say is still shackled by the crippling cost of credit. Speaking to reporters on the sidelines of the Eastern Economic Forum in the city of Vladivostok, Gref, a former economy minister, said that in the second quarter, the economy looked as if it was in "technical stagnation". Gref said the expected cut in rates to 14% by year-end from the current 18% was not enough to revive the economy - and suggested that only if the rates were cut to 12% would the economy recover. "It is important to move out of this period of controlled cooling of the economy so that it does not turn into stagnation, because reviving the economy will be much more difficult than cooling it down," he said. Gref said that data from banks - received faster than state statistics - showed a sharp slowdown and that there were signs that growth was close to zero in July and August. Finance Minister Anton Siluanov told Putin last week that Russia's economic growth is expected to slow to 1.5% in 2025, far below the earlier 2.5% forecast, as high interest rates imposed to reduce inflation have stifled borrowing. Pressure is mounting on the central bank - run by Gref's former colleague Elvira Nabiullina - to cut rates at its Sept. 12 meeting, with a slew of warnings from senior officials and influential business chiefs about the impact of high rates. RATE DECISION Gref said he hoped the central bank would heed the warnings and avoid a recession. "At current inflation levels, the rate at which we can hope for economic recovery is 12% or lower. So somewhere around these levels, we will most likely see economic recovery." Nabiullina's deputy, Alexei Zabotkin, said on Tuesday that Russia had made substantial progress in fighting inflation but that the central bank was exercising caution in its assessments of inflation reduction to ensure they are not overly premature or overly optimistic. Reuters reported exclusively in January that Putin had grown increasingly concerned about distortions in Russia's wartime economy, particularly with a cut to investment by major companies due to high interest rates. "The latest data suggests that the economy is cooling down faster than expected," said Economy Minister Maxim Reshetnikov, whose staffers are finalising the latest set of macroeconomic forecasts for the next year's budget. Reshetnikov said producer prices had not risen indicating that there was not enough demand in the economy, and that some machine-building enterprises had switched to four-day weeks to reduce costs. During Putin's first two terms as president from 2000 to 2008, the size of the economy soared to $1.7 trillion from less than $200 billion in 1999. But Russia's nominal GDP is now just $2.2 trillion, about the same level it was in 2013, the year before Russia annexed Crimea from Ukraine. https://www.reuters.com/business/finance/sberbank-ceo-gref-warns-russian-recession-if-rates-not-slashed-2025-09-04/

2025-09-04 11:22

Sept 4 (Reuters) - Futures tied to Canada's main stock index inched up on Thursday as investors awaited key employment data that could influence the Bank of Canada's September interest-rate decision. Futures on the S&P/TSX index gained 0.4% to 1,710.90 points by 06:17 a.m. ET (1017 GMT). The benchmark index rose to another record high on Wednesday. Sign up here. Both Canada and the U.S. are due to release employment reports for August on Friday. Economists forecast that Canada's economy added 10,000 jobs and the country's unemployment rate rose to 7% from 6.9% a month earlier. The data follow last week's GDP report that showed Canada's economy contracted more than expected in the second quarter, prompting markets to expect that the BoC may move to cut interest rates. Money markets see a 68.5% chance of a 25-basis-point interest-rate cut at the September 17 meeting. The benchmark rate is at 2.75%. 0#CADIRPR Investors will also watch U.S. President Donald Trump's nominee, economic advisor Stephen Miran, testify in a Senate confirmation hearing on Thursday to fill Fed Governor Adriana Kugler's seat, which she resigned from last month. In commodities, oil and gold prices declined while copper prices retreated across major exchanges on Thursday. Separate data showed that Greater Toronto Area home sales fell for the first time in five months in August and prices edged lower. FOR CANADIAN MARKETS NEWS, CLICK ON CODES: TSX market report Canadian dollar and bonds report CA/ Reuters global stocks poll for Canada , Canadian markets directory https://www.reuters.com/markets/europe/tsx-futures-edge-higher-before-economic-data-2025-09-04/

2025-09-04 11:06

TORONTO, Sept 4 (Reuters) - The Canadian dollar is set to strengthen over the coming year as the Bank of Canada potentially cuts interest rates just two more times in the current easing campaign and expected rate cuts from the U.S. Federal Reserve help stimulate Canada's economy, a Reuters poll found. The median forecast of 32 foreign exchange analysts in the August 29-September 3 poll predicted the loonie would strengthen 1.4% to 1.36 per U.S. dollar, or 73.53 U.S. cents, in three months, compared with the 1.37 level expected in a survey last month. Sign up here. In 12 months, the currency was forecast to gain 2.8% to 1.3415, versus 1.35 seen previously. Investors expect the BoC to resume its easing campaign at a policy decision on September 17 and are pricing in roughly 40 basis points of easing in total by the end of 2026. The central bank has left its benchmark rate on hold at 2.75% since March, having eased by a cumulative 225 basis points since June 2024. "The BoC is close to done with cutting rates, while the Fed is yet to start in earnest, and we suspect the FOMC is likely to surprise markets with the quantum of rates cuts that they ultimately deliver," said Nick Rees, senior FX market analyst at Monex Europe Ltd. "Combine this with positive spillovers to Canadian growth, and we see plenty of scope for the loonie to make gains against the greenback in the coming 12 months." Canada sends about 75% of its exports to the United States, including oil and autos. The U.S. has imposed a 35% tariff on goods from Canada but the vast majority of products are exempt from duties under a continental trade pact. Fiscal spending on defense and other items could also boost Canada's economy, say analysts. Canada has been dealing with economic uncertainty since the start of the year, so the primary focus of the federal budget, due to be presented in October, will be to cut operational spending and funnel investments into major projects, Prime Minister Mark Carney said on Wednesday. (Other stories from the Reuters September foreign exchange poll) https://www.reuters.com/world/americas/canadian-dollar-forecasts-grow-more-bullish-boc-easing-cycle-nears-an-end-2025-09-04/

2025-09-04 10:45

LONDON, Sept 4 (Reuters) - What matters in U.S. and global markets today By Mike Dolan , opens new tab, Editor-At-Large, Finance and Markets Sign up here. Ailing long-dated sovereign bonds around the world caught a break yesterday on a mix of soft U.S. jobs signals, decent auction buying and ebbing oil prices.The bond bounce and Federal Reserve easing speculation added to Alphabet's near 10% surge on its antitrust win to lift Wall Street stocks again on Wednesday, with index futures up again ahead of Thursday's bell. The day ahead brings another stream of labor market updates ahead of Friday's critical August payrolls report. * Fed futures rallied to fully price a quarter point interest rate cut later this month after news of falling U.S. job openings added to a downbeat readout from the central bank's 'Beige Book' on economic conditions and relatively dovish soundings from Fed officials. Two-year Treasury yields hit a four-month low. The U.S. Senate Banking Committee will hold a hearing on Thursday to consider President Donald Trump's nominee to the Fed board Stephen Miran while central bankers around the world fretted about potential threats to Fed independence. * Long-dated government bond yields around the world pulled back from record or multi-year highs on Thursday in tandem with the 10 basis point slide in 30-year Treasuries from yesterday's 5% peak, with Japan's 30-year equivalent also getting a break after a bond sale there drew enough demand to calm the horses despite being the lowest bid-to-offer rate since June. UK 30-year gilts rallied too with a 20bp drop in yields from Wednesday's highs. The dollar was firmer. * Japan and the United States are in the final stages of talks to implement lower tariffs on Japanese automobile imports within 10-14 days after a U.S. presidential executive order. Japanese stocks rallied, but Chinese stocks sharply underperformed generally higher world stocks - falling the most in nearly five months after media reports of possible regulatory curbs on speculation. Today's column explores why the so-called 'Fed put' may not work for long-maturity bonds and why lower central bank rates could actually aggravate the problem. Today's Market Minute * Donald Trump's administration asked the U.S. Supreme Court on Wednesday to swiftly hear a bid to preserve his sweeping tariffs pursued under a 1977 law meant for emergencies after a lower court invalidated most of the levies that have been central to the Republican president's economic and trade agenda. * Alibaba (9988.HK) ByteDance and other Chinese tech firms remain keen on Nvidia's (NVDA.O) artificial intelligence chips despite regulators in Beijing strongly discouraging them from such purchases, ⁠four people with knowledge of procurement discussions said. * North Korean leader Kim Jong Un said his country would "fully support" Russia's army as a "fraternal duty", and Russian President Vladimir Putin called the two countries' ties "special", state media KCNA reported on Thursday. * A notable trend this year has been the often-counterintuitive market reactions to U.S. President Donald Trump's efforts to upend many long-held economic norms. One of the biggest surprises, writes ROI markets columnist Jamie McGeever, has been the appreciation of China's yuan. * The high-stakes energy diplomacy in Beijing this week signals China’s willingness to defy U.S. President Donald Trump’s efforts to isolate Russia and assert U.S. energy dominance. Read the latest from ROI energy columnist Ron Bousso. Chart of the day U.S. job openings fell to a 10-month low in July and there were more unemployed people than positions available for the first time since the COVID-19 pandemic, data consistent with easing labor market conditions evident in that month's broader employment report. With reports on private sector payrolls and layoffs for August, along with weekly jobless claims numbers, due on Thursday, the signals for July will be held up to the light and Friday's August employment report is then likely to be pivotal for Fed easing expectations. Today's events to watch * U.S. August layoffs from Challenger (7:30 AM EDT) US August ADP private sector payrolls (8:15 AM EDT) weekly jobless claims (8:30 AM EDT), July goods trade balance (8:30 AM EDT) August service sector surveys from S&P Global (9:45 AM EDT) and ISM (10:00 AM EDT), Q2 labor costs and productivity (8:30 AM EDT); Canada July goods trade (8:30 AM EDT) * Senate Banking Committee holds hearing on nomination of Stephen Miran to the Federal Reserve Board (9:00 AM EDT) * New York Fed President John Williams and Chicago Fed President Austan Goolsbee both speak * German Chancellor Friedrich Merz, UK Prime Minister Keir Starmer and NATO Secretary General Mark Rutte take part in talks with Ukraine's President Volodymyr Zelenskiy in Paris * U.S. corporate earnings: Broadcom, Copart, Lululemon -- 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 (The opinions expressed here are those of the author, a columnist for Reuters) https://www.reuters.com/business/finance/global-markets-view-usa-2025-09-04/