2025-08-29 11:12
SINGAPORE, Aug 29 (Reuters) - The Chinese government has appointed Zhou Xinhui, a former top executive of China National Offshore Oil Corporation (CNOOC) as the president of China National Petroleum Corp (CNPC), CNPC said on Friday. Top executives of China's national oil majors have in recent years rotated their positions among themselves. Sign up here. Last month, Hou Qijun, former president of CNPC, was appointed as the new chairman of Sinopec. https://www.reuters.com/sustainability/climate-energy/former-cnooc-top-executive-appointed-cnpc-president-2025-08-29/
2025-08-29 11:10
Lloyds and NatWest down around 5%, Barclays 4% Think-tank IPPR says Britain is subsidising banks Others have called for changes to interest system Reeves under pressure to raise revenues in budget LONDON, Aug 29 (Reuters) - British bank shares fell sharply on Friday after a think-tank called for a new levy on lenders and a newspaper report said industry figures were worried the government was planning to raise cash by targeting the sector. Finance minister Rachel Reeves should use her autumn budget to tax banks on the billions of pounds they receive in interest from the Bank of England on reserves held at the central bank, the Institute for Public Policy Research recommended. Sign up here. Around 22 billion pounds ($29.7 billion) a year, which goes to the banks as a result of the BoE's bond-buying programme, represents a subsidy to the lenders, the think-tank said. Echoing calls made by other commentators in recent years, the IPPR said a new tax on the interest the banks received would give Reeves more room to meet her fiscal rules. Reeves is widely expected to increase taxes again, after raising them on employers in her first budget last year, as a subdued growth outlook and higher borrowing costs put pressure on Britain's public finances. "What started as a programme to boost the economy is now a massive drain on taxpayer money," Carsten Jung, associate director for economic policy at IPPR, said. British bank shares were the worst performers among the STOXX 600 (.STOXX) , opens new tab index of large European companies after the Financial Times said fears were growing in the industry that Reeves would target banks. NatWest (NWG.L) , opens new tab dropped 5.1% and Lloyds (LLOY.L) , opens new tab 4.9% by 1030 GMT. Barclays (BARC.L) , opens new tab sank 4% against a FTSE 100 (.FTSE) , opens new tab down 0.3%. Their shares have enjoyed a huge rally since early 2024 as higher rates boosted profitability. "In the last couple of years, the Chancellor has been protective of the banks and has avoided raising taxes," analysts at Exane told clients. "However, public finances may require additional cash and pressures for a bank tax from within the Labour party seem to be rising." A spokesperson for Britain's finance ministry said the best way to strengthen public finances was to speed up economic growth. "Changes to tax and spend policy are not the only ways of doing this, as seen with our planning reforms," the spokesperson said. TAX OPTIONS British media have published reports recently on tax increase options for Reeves, ranging from a new levy on home sales and increasing taxes on landlords to freezing the thresholds at which individuals pay income tax and changes to tax relief on pensions. British banks hold hundreds of billions of pounds of reserves at the BoE, largely as a result of its quantitative easing - or bond-buying - that was launched during the 2008-09 global financial crisis and is now being run down. Banks are paid interest on reserves at the BoE's benchmark rate, which is higher now than during the QE programme. BoE losses are covered by the Treasury and, ultimately, taxpayers. BoE Governor Andrew Bailey has said the system was essential to transmit changes in official interest rates to the economy. In June, Bailey again defended the programme after it came under fire from some politicians for its cost. In May, Bailey and Reeves raised the prospect of the BoE making money from its new system for providing reserves to banks after racking up huge losses from its bond-buying programme. Industry group UK Finance said banks paid almost 45 billion pounds in tax last year. Another tax would "make the UK less internationally competitive and run counter to the government’s aim of supporting the financial services sector" to boost growth, a spokesperson said. Calls for a rethink of the system date back years. Former BoE deputy governor Paul Tucker said in 2022 the government should review it.($1 = 0.7402 pounds) https://www.reuters.com/business/finance/british-bank-shares-slide-fears-new-tax-2025-08-29/
2025-08-29 11:09
US dollar set for monthly loss of 2% Focus on US inflation data later today Larger-than-expected uptick in PCE may be negative for gold - analyst Aug 29 (Reuters) - Gold prices edged lower on Friday, but were set for a monthly gain ahead of U.S. inflation data that will provide more cues on the Federal Reserve's rate cut trajectory. Spot gold was down 0.3% at $3,407.14 per ounce, as of 1048 GMT. Bullion has gained 3.6% in August and hit $3,423.16 on Thursday, its highest level since July 23. Sign up here. U.S. gold futures for December delivery fell 0.2% to $3,466. "Besides the dollar's slight advance, gold is also feeling the gravitational forces typically found around big, round numbers. Markets appear reluctant to let gold stray far from the psychological $3,400 level ahead of PCE data," said Han Tan, chief market analyst at Nemo.Money. The dollar (.DXY) , opens new tab rose, but was set for a monthly drop of 2%. Benchmark 10-year yields were slightly above a two-week low hit on Thursday, but were headed for a monthly loss. All eyes are on the Personal Consumption Expenditures (PCE) Price Index, the Fed's preferred inflation gauge, due later in the day. "As long as the uptick in inflation is not worse than feared, bullion bulls should be able to hold their ground above $3,400. However, if the PCE prints dash market expectations for Fed rate cuts this year, spot gold may slide back into sub-$3,400 domain once more," Tan said. Non-yielding gold typically performs well in a low-interest-rate environment. Fed Governor Christopher Waller on Thursday stepped up his call for cutting short-term U.S. borrowing costs, saying he would support an interest rate cut next month. Traders expect an 85% chance of a 25-basis point rate cut at the September policy meeting, according to the CME FedWatch Tool. Meanwhile, demand for physical gold in India picked up slightly this week, despite a recovery in prices, as jewellers stocked up ahead of the festive season. Spot silver fell 0.5% to $38.89 per ounce, platinum fell 1.1% to $1,344.74 and palladium was down 0.8% to $1,093.78. https://www.reuters.com/world/india/gold-set-post-monthly-gain-all-eyes-pce-data-2025-08-29/
2025-08-29 11:02
Quick Russia-Ukraine ceasefire deal very unlikely, analysts say Global oil demand seen growing between 0.5-1.1 mbpd in 2025 For table of crude price forecasts, click Aug 29 (Reuters) - 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 curb demand growth, a Reuters poll showed on Friday. A survey of 31 economists and analysts conducted in August forecasts Brent crude will average $67.65 per barrel in 2025, little changed from July's $67.84 forecast. The global benchmark has averaged around $70 so far this year. Sign up here. U.S. crude is seen at $64.65, compared with last month's $64.61 estimate. "(With) the latest OPEC+ supply increases and the expected lackluster global demand, the prospect is for an even larger market surplus in 2025," said Moutaz Altaghlibi, senior energy economist at ABN AMRO. He said the outlook remains clouded by "deep uncertainty" concerning any additional U.S. tariffs, especially those associated with geopolitical outcomes such as an Iranian nuclear deal or Russia agreeing to a ceasefire. Earlier this month, the Organization of the Petroleum Exporting Countries and its allies, together known as OPEC+, agreed to raise oil production by 547,000 barrels per day for September. "OPEC+ probably still has not reached the end of their output hikes. At the moment, market share seems to be more important than a higher level of oil prices," said Frank Schallenberger, head of commodity research at LBBW. "This will lead to a big supply surplus on oil markets in 2025 and 2026 and will keep prices down." Washington's attempts to broker peace in Ukraine with Moscow have so far proven unsuccessful. Meanwhile, U.S. President Donald Trump has imposed additional tariffs on India, pressuring New Delhi to stop buying Russian oil. Most of the poll respondents see limited impact on the oil market from Trump's threats on Russian crude buyers, as they expect OPEC+ and alternative suppliers could mitigate supply gaps. However, the geopolitical risk premium is expected to underpin oil prices as a quick Russia-Ukraine ceasefire deal seems highly unlikely, analysts said. Global oil demand is seen growing by between 500,000 and 1.1 million bpd in 2025, the poll showed, compared to the International Energy Agency forecast of 680,000 bpd. Meanwhile, OPEC raised its global oil demand forecast for next year and trimmed its estimate for growth in supply from the U.S. and other producers outside the wider OPEC+ group. "U.S. production is an interesting one as President Trump would like to push for more production, but OPEC+ may be right in their projections. The reason around this is price," said Zain Vawda, analyst at MarketPulse by OANDA. https://www.reuters.com/business/energy/oil-faces-uphill-struggle-supply-glut-worries-mount-2025-08-29/
2025-08-29 10:51
Aug 29 (Reuters) - Sterling slipped against the dollar and euro on Friday amid concerns over Britain's fiscal position, but remained on track for a monthly gain against the U.S. currency. The pound was 0.3% lower on the day at $1.3464 and was down about the same amount against the euro . Sign up here. Over the month, though, sterling was on course to rise about 2% against the dollar, while declining slightly against the euro. An influential think tank recommended on Friday that the UK government could begin taxing banks based on their Bank of England reserves. Weakness in the pound coincided with a decline in British bank shares and an uptick in benchmark Gilt yields on Friday. British bank shares were the worst performers on the STOXX 600 (.STOXX) , opens new tab index of large European companies, while the yield on the benchmark 10-year Gilt rose 3 basis points to 4.73%. "All in all, it's highlighting the potential downside risks for the pound from the government's fiscal position," said Lee Hardman, senior currency analyst at MUFG. A pullback in expectations for rate cuts by the Bank of England and buoyant economic data have supported sterling this month. Analysts reckon that fiscal developments are likely to stay in focus for the currency going ahead. British finance minister Rachel Reeves is widely expected to increase taxes again after raising them on employers in her first budget last year. Elsewhere, the dollar was steady against a basket of major currencies at 97.99 as investors awaited the U.S. PCE price index report, the Fed's preferred inflation measure, later on Friday for cues on the future path of monetary policy. Money markets are currently pricing in an 85% chance of a U.S. rate cut next month. https://www.reuters.com/world/uk/sterling-course-monthly-rise-against-dollar-fiscal-risks-linger-2025-08-29/
2025-08-29 10:50
OSLO, Aug 29 (Reuters) - Maintenance at major gas fields and onshore processing plants will curb Norwegian natural gas supply by around a third during the first half of September, as Europe's biggest supplier readies the system for the busy winter demand season. "We are a getting close to the period with the major planned shutdowns for this season," said Alfred Skaar Hansen, head of system operation at Norway's gas infrastructure operator Gassco. Sign up here. The work involved many field operators and onshore facilities as well as receiving terminals in Britain and the European Union, and was planned carefully to minimise the downtime for Norwegian deliveries, he added. The European gas winter season, when consumption is highest due to heating demand, starts on October 1 and ends on March 31. Norway became Europe's largest supplier of natural gas following Russia's invasion of Ukraine in 2022, providing about 30% of all gas imports to the EU. Gassco operates an 8,800-km (5,468-mile) pipeline network connecting Norwegian gas fields to Germany, Belgium, France, Britain and Denmark and deliveries are typically around 340 million cubic metres (mcm) per day. With some maintenance starting earlier this week, including at the Nyhamna processing plant, nominations have already dropped to 255 mcm/day on Friday, Gassco data showed. Unavailable capacity will surge from Saturday and remain at about 120 mcm/day of lost volumes until September 18, led by bigger cuts at Europe's largest gas field - Troll - and the Kollsnes onshore processing plant. The drop in Norwegian supply is already priced into European gas contracts but unplanned extensions or delays could impact the market, analysts said. Gassco's Hansen said the company is monitoring and coordinating all work closely and will inform of any changes via its transparency platform. https://www.reuters.com/business/energy/norways-gas-system-enters-peak-maintenance-prep-heavy-duty-winter-2025-08-29/
