2025-09-01 02:35

MUMBAI, Sept 1(Reuters) - The Indian rupee, after falling to a lifetime low last Friday, will likely remain under pressure this week with U.S. tariffs and sluggish portfolio flows piling on the pressure, while government bonds brace for fiscal developments. The rupee hit an all-time low of 88.3075 against the U.S. dollar last Friday, sliding past the 88 mark — a level widely seen as an important technical support and likely to draw heavy intervention from the Reserve Bank of India. Sign up here. The rupee's drop past 88 followed Washington’s imposition of additional tariffs on India, a move expected to hurt portfolio flows, impact growth, and widen India's trade deficit. Foreign outflows from Indian equities have accelerated after the additional U.S. tariffs amid worries over slower earnings for export-oriented sectors and the macro outlook. "Till the uncertainties around US tariffs settle down, it will continue being a rupee-negative event," Dipti Chitale, CEO at Mecklai Financial Services, said. "We feel that Reserve Bank of India will let the rupee depreciate in the interest of maintaining competitiveness in the market." Meanwhile, India's 10-year benchmark 6.33% 2035 bond yield settled at 6.5678% on Friday, up 2 basis points through Friday, after rising 15 bps in the previous week. Traders anticipate the yield will remain in the 6.52% to 6.65% band this week, with major focus on developments in New Delhi's fiscal picture as well as a meeting of the goods and services tax council towards the end of the week. "Monetary policy has already played its role and has limited fire power left, but the fiscal should act now and calm markets," said Niraj Kumar, chief investment officer at Generali Central Life Insurance. Bond market sentiment has weakened on fears of fiscal slippage after Prime Minister Narendra Modi unveiled sweeping goods and services tax reforms on August 15. India plans to slash the levy by October and has proposed a move to a two-rate structure of 5% and 18%, scrapping the 12% and 28% rates in place currently. The GST council will meet on Wednesday and Thursday. Meanwhile, India's economy unexpectedly expanded 7.8% year-on-year in the April-June quarter, picking up from 7.4% in the previous three months. Economists polled by Reuters had forecast growth likely cooled to 6.7%. "Going forward, we could see some slowdown in the second quarter due to spillovers from the tariff impact. For now, our full-year GDP growth estimate for FY26 is retained at 6.3%, with a downward bias," Sakshi Gupta, principal economist at HDFC Bank said. KEY EVENTS: India ** August HSBC manufacturing PMI - September 1, Monday (10:30 a.m.) ** August HSBC services PMI - September 3, Wednesday (10:30 a.m.) U.S. ** August S&P Global manufacturing PMI final - September 2, Tuesday (7:15 p.m. IST) ** August ISM manufacturing PMI - September 2, Tuesday (7:30 p.m. IST) ** July factory orders - September 3, Wednesday (7:30 p.m. IST) ** July international trade - September 4, Thursday (6:00 p.m. IST) ** Initial weekly jobless claims for week to August 25 - September 4, Thursday (6:00 p.m. IST) ** August S&P Global composite PMI final - September 4, Thursday (7:15 p.m. IST) ** August S&P Global services PMI final - September 4, Thursday (7:15 p.m. IST) ** August ISM non-manufacturing PMI - September 4, Thursday (7:30 p.m. IST) ** August non-farm payrolls and unemployment rate - September 5, Friday (6:00 p.m. IST) https://www.reuters.com/world/india/rupee-may-weaken-further-tariffs-outflows-bonds-eye-fiscal-clarity-2025-09-01/

2025-09-01 00:55

Russian drones knock out power facilities in Ukraine Zelenskiy vows more strikes deep inside Russia Asia manufacturing data mixed, clouds economic outlook OPEC+ to meet on September 7 SINGAPORE, Sept 1 (Reuters) - Oil prices traded in a tight range on Monday as worries about rising output and the impact of U.S. tariffs on demand offset supply disruptions stemming from intensified Russia-Ukraine airstrikes. Brent crude fell 30 cents, or 0.44%, to $67.18 a barrel by 0500 GMT, while U.S. West Texas Intermediate crude was at $63.73 a barrel, down 28 cents, or 0.44%. Trading is expected to be muted due to a U.S. bank holiday. Sign up here. Ukrainian President Volodymyr Zelenskiy vowed on Sunday to retaliate by ordering more strikes deep inside Russia after Russian drone attacks on power facilities in northern and southern Ukraine. Both countries have intensified airstrikes in recent weeks, targeting energy infrastructure and disrupting Russian oil exports. Markets remained concerned about Russian oil flows, with weekly shipments from its ports dropping to a four-week low of 2.72 million barrels per day, according to tanker tracker data cited by ANZ analysts in a note. However, Russian oil exports to India are set to rise in September, traders said, despite secondary tariffs imposed on New Delhi by the U.S. for buying oil from Moscow. "Modi’s meeting with Putin in China will be closely watched, particularly in light of U.S. pressures," Michael McCarthy, CEO of Moomoo Australia, said, referring to the Indian and Russian presidents who are attending the Shanghai Cooperation Organisation regional security bloc in China. A Reuters poll on Friday showed that oil prices are unlikely to gain much traction from current levels this year, as rising output from top producers adds to the risk of a surplus and U.S. tariff threats weigh on demand growth. The week started with a slew of manufacturing and export data from China, Japan and South Korea, among the world's biggest crude oil importers. Factory activity in China unexpectedly grew in August but weakened for other Asian economies as companies began to feel the pain from U.S. tariffs, private surveys showed on Monday, clouding the outlook for the region's fragile recovery. Brent and WTI crude posted their first decline in four months in August, down 6% or more on OPEC+ supply concerns. Investors are eyeing the September 7 meeting between members of the Organization of the Petroleum Exporting Countries and their allies for further supply cues. Meanwhile, U.S. crude oil production hit a record high in June, rising 133,000 barrels per day to 13.58 million bpd, according to data released by the Energy Information Administration on Friday. A U.S. labor market report this week will give a crucial read into the economy's health and test investors' confidence that interest rate cuts are coming soon, a view that has lifted their appetite for riskier assets such as commodities. https://www.reuters.com/business/energy/oil-holds-tight-range-rising-output-offsets-russia-supply-disruptions-2025-09-01/

2025-08-31 21:59

Negotiations slowed despite handshake agreement and summit Tariff and defence issues remain unresolved, impacting progress $350 billion investment fund and agriculture market disagreements persist SEOUL, Aug 29 (Reuters) - Negotiations ranging from tariffs to defence between South Korea and the United States were bogged down, overshadowing a handshake agreement and a promising presidential summit, officials in Seoul said. South Korean President Lee Jae Myung met U.S. President Donald Trump for the first time on Monday, and emerged declaring success after displaying personal chemistry and avoiding any public split between the two long-time allies. Sign up here. Behind the scenes, however, the two sides were unable to agree on a joint statement or even a fact sheet, and a month after announcing a deal on tariffs, the agreement still has not been finalised on paper. Lee's national security adviser, Wi Sung-lac, said on Friday that the two countries did not produce documents covering security, economy, trade or investments because progress remained slow in some areas while large strides had been made in other areas. More discussions and reviews were needed to hash out their details, he added, without providing specific details. South Korean presidential chief of staff Kang Hoon-sik told reporters on Thursday that it was a "very difficult negotiation" because issues ranging from investments to security are closely intertwined. "If the negotiations for one minister doesn't go well, they put a break on another negotiation that is going well," he said. "We've overcome a significant obstacle, but there is still a long way to go." Kang added that Washington could leverage several issues such as tariffs on cars, chips, and pharmaceuticals, as well as defence costs and around U.S. forces stationed in Korea. Speaking to his cabinet after the summit, Trump acknowledged a "problem with South Korea" but that Seoul had ultimately "kept the same deal." Neither Seoul nor Washington has elaborated. The U.S. Embassy in Seoul did not immediately respond to questions about the talks. 'BIG LOSSES' Even before Lee and Trump's meeting, disagreements over a $350 billion investment fund, as well as a U.S. push to open up South Korea's agriculture market, were hampering negotiations. Meanwhile, cuts to tariffs on automobiles are yet to be finalised and Seoul has not secured assurances on chip levies, both expected to be capped at 15% - the same rate as Europe. An auto industry official said the summit has done little to ease uncertainty: "We are really worried... We are having big losses." South Korean newspaper JoongAng Ilbo said the U.S. wanted to use the summit to produce documents detailing the $350 billion investments in return for accepting Seoul's demand for formalising 15% tariffs on cars and chips, and ruling out the opening of rice and beef imports. A South Korean official said Seoul has asked that loans and equity only account for a fraction of the fund. After the summit, Seoul said it was in talks with the U.S. to work out a non-binding deal on the fund. Japan, the only other country to propose such a large investment fund, is also facing delays in finalising its deal over unresolved issues with Washington. It remains unclear what payments Trump will demand from South Korea for maintaining the 28,500 American troops based there. He has also raised a fresh demand for the U.S. to own the land on which its bases are located. South Korean officials have said it is a political non-starter and there has been no such formal request from Washington. https://www.reuters.com/world/asia-pacific/south-korean-negotiators-struggle-close-gaps-with-us-despite-summit-tariff-deal-2025-08-29/

2025-08-31 21:16

CAIRO, Aug 31 (Reuters) - British maritime security firm Ambrey said on Sunday that a Liberia-flagged Israeli-owned tanker reported an explosion nearby, southwest of Saudi Arabia's Red Sea port city of Yanbu. A vessel reported "a splash in close proximity from an unknown projectile and heard a loud bang", the United Kingdom Maritime Trade Operations (UKMTO) said, adding that the vessel's crew were all safe and it was continuing to its next voyage. Sign up here. In a later update, Ambrey said it assessed the vessel to be "aligned with" the targets of Yemen's Iran-aligned Houthis' profile given that it was publicly Israeli-owned. Since 2023, the Houthis have been attacking vessels in the Red Sea that they deem to be affiliated with Israel in what they describe as support of Palestinians in Gaza. It was not immediately clear if the Houthis were involved, and the group did not provide immediate comment on the reported incident. UKMTO did not identify the party responsible, but said authorities were investigating. Yanbu is a port city located on Western Saudi Arabia's Red Sea coast. Saudi Arabia led a coalition that launched a military campaign in Yemen from early 2015 to support the Gulf-backed government against the Houthis, who had seized the capital Sanaa in 2014. The coalition has in the past foiled attempted assaults using explosive-laden boats it says were launched by the Houthis. https://www.reuters.com/world/middle-east/british-maritime-agency-ambrey-reports-blast-near-liberia-flagged-tanker-off-2025-08-31/

2025-08-31 20:59

CAIRO, Aug 31 (Reuters) - Maritime agencies reported on Sunday that they received reports of an incident southwest of Saudi Arabia's Red Sea port city of Yanbu. A vessel reported "a splash in close proximity from an unknown projectile and heard a loud bang", the United Kingdom Maritime Trade Operations (UKMTO) said, adding that the vessel's crew were all safe and it was continuing to its next voyage. Sign up here. Shortly after UKMTO's report, British maritime security firm Ambrey also said it was aware of an incident 37.5 nautical miles southwest of Yanbu. Both firms did not identify the party responsible for the incident, but UKMTO said authorities were investigating. Yanbu is a port city located on Western Saudi Arabia's Red Sea coast. Since 2023, Yemen's Iran-aligned Houthis have been attacking vessels in the Red Sea that they deem to be affiliated with Israel in what they describe as support of Palestinians in Gaza. It was not immediately clear if the Houthis were involved. The Houthis did not immediately comment on the reported incident. Saudi Arabia led a coalition that launched a military campaign in Yemen from early 2015 to support the Gulf-backed government against the Houthis, who had seized the capital Sanaa in 2014. https://www.reuters.com/world/middle-east/maritime-agencies-report-incident-southwest-saudi-arabias-red-sea-port-yanbu-2025-08-31/

2025-08-31 18:30

Aug 31 (Reuters) - The highly pathogenic avian influenza H5N1 virus was confirmed in poultry at a premises in southwestern England, the UK government said on Sunday. A 3 km (about 2 miles) protection zone and 10 km surveillance zone have been declared around the premises near Exminster in Devon, the government said, adding that "all poultry on the premises will be humanely culled." Sign up here. https://www.reuters.com/business/healthcare-pharmaceuticals/uk-confirms-h5n1-bird-flu-outbreak-southwestern-england-2025-08-31/