2025-09-04 05:44
VLADIVOSTOK, Russia, Sept 4 (Reuters) - The governor of Russia's far eastern Sakhalin region told Reuters on Thursday that a potential return of U.S. energy major Exxon Mobil (XOM.N) , opens new tab would be a boost for the local oil and gas business. Russian President Vladimir Putin signed last month a decree that could allow foreign investors, including top U.S. oil major Exxon Mobil to regain shares in the Sakhalin-1 oil and gas project. Sign up here. The signing of the decree came on the day Russian president Vladimir Putin met Donald Trump in Alaska for a summit where opportunities for investment and business collaboration were on the agenda, alongside talks to find peace in Ukraine. The decree was published as a follow-up to one Putin signed in October 2022, which ordered the seizure of the Sakhalin-1 project. Exxon previously held a 30% operator share in the lucrative project, and is the only non-Russian investor to have quit its stake. Valery Limarenko, the Sakhalin governor, said Russia has its own technologies to produce oil and gas, including offshore, but Exxon's return would be helpful. "We need to develop further and in this sense, it would be more efficient to develop further jointly," he said. "Look, it's important that they want to return," he added. Exxon took an impairment charge of $4.6 billion to exit its Russian business after Moscow sent troops into Ukraine in February 2022. In December 2024, Putin signed a decree extending the sale period for the unclaimed Exxon stake in Sakhalin-1 until 2026. Alongside Exxon, Russian company Rosneft (ROSN.MM) , opens new tab, India's ONGC Videsh (ONVI.NS) , opens new tab, Japan's SODECO were partner investors. The Russian government allowed both ONGC Videsh and SODECO to keep their stakes. https://www.reuters.com/business/energy/russias-sakhalin-governor-says-exxons-return-would-be-beneficial-2025-09-04/
2025-09-04 05:42
Sept 4 (Reuters) - Steelmaker ArcelorMittal's (MT.LU) , opens new tab talks to sell its South African unit to state-owned Industrial Development Corporation have stalled over valuation differences, Bloomberg News reported on Thursday, citing people familiar with the matter. While the parties may still reach an agreement on the fate of ArcelorMittal South Africa (ACLJ.J) , opens new tab before the end of a due diligence period on September 30, the company wants considerably more than what was offered, the report said. Sign up here. Offers of as much as 7 billion rand ($398.6 million) for the South African unit have been discussed, the Bloomberg report said. ArcelorMittal, its South African unit and IDC did not immediately respond to requests for comment. Reuters could not immediately verify the report. "The company has been exploring various strategic options while the IDC has simultaneously been conducting its due diligence into the company and the government has been pursuing structural interventions," ArcelorMittal South Africa said in a statement to the stock exchange in Johannesburg on Tuesday. The Luxembourg-headquartered company said in July that talks with the South African government have so far yielded little progress to avert the closure of its loss-making long steel operations at its South African unit. In March, ArcelorMittal South Africa deferred the closure after IDC injected 1.683 billion rand in cash. The world's number two steelmaker previously said the closure could no longer be postponed beyond September 30 unless a solution is found soon. IDC holds about an 8.2% stake in ArcelorMittal South Africa, making it the second largest stakeholder after ArcelorMittal, according to data compiled by LSEG. ($1 = 17.5632 rand) https://www.reuters.com/world/africa/arcelormittals-talks-sell-south-african-unit-stall-over-valuation-bloomberg-news-2025-09-04/
2025-09-04 05:40
NEW DELHI, Sept 4 (Reuters) - Parts of Delhi and Indian Kashmir were flooded on Thursday after two rivers breached the danger mark following heavy rain in several northern areas, but weather officials forecast some respite from downpours. A fierce monsoon season has brought immense destruction in the region this year, killing at least 130 people in August. Sign up here. Torrential rain in the hilly areas of the federal territory of Jammu and Kashmir, the Himlayan enclave of Ladakh and Himachal Pradesh has swollen many rivers, which have crossed danger levels. Residential areas were flooded in the key city of Srinagar after a breach of the Jhelum river embankment, and authorities urged people to evacuate homes. "The Jhelum is climbing, but at a much slower rate than was feared," Omar Abdullah, the chief minister of Jammu and Kashmir, said in a post on X. "The administration is not going to lower its guard. We continue to monitor the situation very closely." Rescuers searched for any people trapped under debris after the rain triggered a landslide at the Ratle hydroelectric power project on the Chenab river in Drabshalla, officials said. Indian weather officials have forecast showers to ease off on Thursday, with moderate rain expected in Jammu and Kashmir and the state of Uttarkhand. In Delhi, the capital, the Yamuna river passed the danger mark on Tuesday, in a flow the Central Water Commission described as a 'severe' situation. On Thursday, muddy water poured into many homes in low-lying areas, from which thousands had already been evacuated to safer places as a precaution. Authorities shut the historic Loha Pul, or Iron Bridge, spanning the Yamuna in the older part of the city. People waded through floodwaters in areas surrounding the historic Red Fort, many carrying an idol of Lord Ganesha, the Hindu god who vanquishes obstacles, for immersion in the river waters in an annual ritual. Crops across tens of thousands of hectares have been destroyed by the rains in the breadbasket state of Punjab where 37 have died since August began. The deluge spurred authorities to release water pent up in dams, further flooding areas in both India and neighbouring Pakistan. https://www.reuters.com/sustainability/climate-energy/indias-yamuna-river-crosses-danger-mark-heavy-rains-flood-parts-delhi-2025-09-04/
2025-09-04 05:31
U.S. job openings data reinforces rate cut wagers All eyes on Friday's payrolls report for policy cues Bond market ructions ease but fiscal worries linger SINGAPORE, Sept 4 (Reuters) - The U.S. dollar steadied on Thursday in a volatile week as investors contended with bond market jitters while weighing data that showed a weakening labour market, which reinforced expectations the Federal Reserve will cut rates this month. With the Fed focused on the labour market, Friday's crucial jobs report will set the tone for the near-term rate outlook after data on Wednesday showed job openings fell to a 10-month low in July, although layoffs remained relatively low. Sign up here. Traders are pricing in about a 97% chance of the Fed cutting interest rates later this month, up from 89% a week earlier, CME FedWatch showed. They are also pricing in 139 basis points of easing by the end of next year. The dollar was relatively steady in Asian hours after easing in the previous session as investors were hesitant in placing major bets ahead of the U.S. payrolls report. The euro held onto its overnight gains and last bought $1.165275. After a bruising week, sterling was at $1.343, slightly lower on the day, not far from the four-week lows it hit on Wednesday. The dollar index , which measures the U.S. currency against six other units, was flat at 98.227 after a small drop on Wednesday. The Japanese yen was muted and last bought 148.16 per dollar. Several Federal Reserve officials said labour market worries continue to underpin their view that rate cuts still lie ahead for the central bank, boosting expectations of an imminent rate cut. James Knightley, ING's chief international economist, said the Fed is very likely to cut rates meaningfully in the months ahead with little inflation pressure coming from the jobs market. "We expect them to cut 25 bp at the September, October and December FOMC meetings." The Fed is due to meet on September 16-17. BOND WORRIES Much of the focus this week has been on the bond market where yields on long-end notes across the globe have risen as investors become increasingly anxious about the fiscal health of major economies from Japan to Britain and the United States. "The sell-off in global bond markets is hurting investor sentiment and weighing on the GBP and JPY where there are particular concerns about fiscal sustainability," said David Forrester, senior strategist at Credit Agricole in Singapore. But a closely watched auction of 30-year Japanese government bonds passed smoothly on Thursday, calming investors' nerves, while the dovish comments from policymakers spurred a rally in Treasuries, pushing yields lower. U.S. 30-year bond yields were at 4.901% after hitting 5%, the highest in about 1-1/2 months on Wednesday. The yield on the 30-year JGB slid 4 bps to a session low of 3.24% following the auction results. Uday Patnaik, head of Asia fixed income and global emerging market debt in the asset management division of L&G, said the rise in yields reflects poor fiscal conditions in some of the largest advanced economies, where the debt-to-GDP ratio is heading above 100%. "The problem here is not one of these countries are running a primary surplus, which means revenues cannot even cover non-interest spending," he said. "To fix this will necessitate significant cuts in spending or additional revenues, at a time when social and political pressures are running high." In other currencies, the Australian dollar was 0.23% lower at $0.6528, while the New Zealand dollar last bought $0.5869. https://www.reuters.com/world/middle-east/dollar-drifts-cracks-us-labour-market-spur-rate-cut-bets-2025-09-04/
2025-09-04 05:26
MUMBAI, September 4 (Reuters) - The Indian rupee was little changed on Thursday, wedged between imported dollar demand and modest foreign portfolio inflows, although analysts reckon that the currency's laggard performance compared to peers this year is likely to persist. The rupee was at 88.1225 per U.S. dollar as of 10:45 a.m. IST, modestly lower from its close at 88.07 in the previous session. Sign up here. Dovish remarks from U.S. Federal Reserve officials, coupled with signs of softness in the U.S. labour market, pressured the dollar, while the rupee found additional support from a post-market announcement of tax cuts on hundreds of consumer goods on Wednesday. India's benchmark equity indexes, both the BSE Sensex (.BSESN) , opens new tab and Nifty 50 (.NSEI) , opens new tab rose 0.8%, while the yield on the benchmark 10-year government bond edged down as the tax cut's impact on government revenues was estimated to be lower than anticipated. According to traders, the rupee is likely to consolidate in the 87.50-88.30 range in the near term after dipping to an all-time low of 88.33 last week on worries over steep U.S. tariffs. The local currency has lagged behind its peers over 2025 and is down about 3% on the year so far, while its Asian counterparts such as the Korean won and Chinese yuan have strengthened by about 5.5% and 2%, respectively. Analysts at Goldman Sachs said in a note that the rupee's underperformance is likely to persist on the back of tariff developments and their macroeconomic impact, continued equity outflows and the potential of India's weightage being changed in the JPMorgan Government Bond Index for Emerging Markets. This week investor focus is also on U.S. economic data to gauge the odds of policy easing by the Fed. The critical U.S. non-farm payrolls report is due on Friday. Money markets have nearly fully priced in a 25-basis-point cut, according to CME's FedWatch tool. https://www.reuters.com/world/india/rupee-steady-expected-continue-underperforming-peers-2025-09-04/
2025-09-04 04:32
A look at the day ahead in European and global markets from Gregor Stuart Hunter Jittery bond markets found reasons for calm as members of the Federal Reserve sounded a supportive note for rate cuts and Japan's latest super-long debt auction passed without incident. Markets stabilised after an auction of 30-year Japanese government bonds on Thursday met with a bid-to-cover ratio of 3.31, after the yield on similarly-dated debt rose to a record. Though demand was the lowest since June, the takeup was sufficient to stop a fresh wave of anxiety gripping the bond market for now. Sign up here. U.S. stock futures clung to gains of 0.1% afterwards, with investors in Asia taking a boost to sentiment after Federal Reserve officials, including Governor Christopher Waller, reiterated support for rate cuts in the months ahead. President Donald Trump's pick to fill an open seat on the Federal Reserve Board, Stephen Miran, also said he would work to preserve the central bank's independence ahead of a Senate confirmation hearing later today. Traders are now pricing in a 96.6% probability of a cut to interest rates at the Fed's September meeting, according to the CME Group's FedWatch tool. The yield on benchmark 10-year Treasury notes rose to 4.2187% compared with its U.S. close of 4.211% on Wednesday, while the U.S. dollar index clawed back 0.1% to 98.231. In early European trades, pan-region futures were flat, German DAX futures slipped 0.1% and FTSE futures were up 0.1%. But MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) , opens new tab gave up early gains and was last down 0.2%, dragged lower by losses in China. The blue-chip CSI 300 (.CSI300) , opens new tab fell 2.5% and was on track for its biggest one-day selloff since April after a Bloomberg News report that financial regulators are preparing cooling measures for the market. That sent the SSE STAR 50 Index (.STAR50) , opens new tab skidding 5.4% lower, as GPU chip designer Cambricon Technologies (688256.SS) , opens new tab, a standout of the recent rally, fell as much as 13.2%. Meanwhile, Indian shares jumped on the open after the government slashed levies on several goods to fire up consumption and counteract U.S. tariffs, with the BSE Sensex (.BSESN) , opens new tab up 1.1% as markets opened. In commodities markets, Brent crude dipped 0.7% to $67.16 a barrel. Precious metal prices fell, with spot gold off 0.8% at $3,531.63 per ounce after hitting a record on Wednesday. Key developments that could influence markets on Thursday: Earnings: Broadcom, CVC Capital Partners, Lululemon Athletica Euro zone economic data: Retail sales for July Debt auctions: France: 10-year, 17-year and 31-year government debt auctions United Kingdom: 20-year government debt auction https://www.reuters.com/world/china/global-markets-view-europe-2025-09-04/
