2025-08-28 06:20
BEIJING, Aug 28 (Reuters) - China will push to cut steel production between 2025 and 2026, according to an official document reviewed by Reuters and a source with knowledge of the matter, as it tackles overcapacity that has hit prices and fed a worldwide protectionist backlash. The world's largest steel producer will strictly curb new capacity and reduce production, the planning document from the industry and environment ministries, among others, showed. Sign up here. "The steel industry is currently facing excess supply and insufficient effective demand, leading to a supply-demand imbalance that affects development quality and efficiency," it read. The document did not set targets for output cuts pledged by the government earlier this year. Crude steel output fell 3.1% in the first seven months of this year. China's industry and commerce ministries did not immediately respond to Reuters request for comments. A source familiar with the discussions confirmed the document's accuracy, saying it was a final draft. The source spoke on condition of anonymity as the matter is a sensitive one. A 2023 effort to restructure the industry foundered in part because Beijing sent mixed signals to steelmakers about how aggressively it planned to crack down on excess capacity. The latest plan includes a goal to grow the industry's value-add by 4% a year, invest in new technology and promote steel use in infrastructure and residential construction, raising questions about Beijing's ambitions this time around. https://www.reuters.com/markets/commodities/china-aims-cut-steel-output-prune-overcapacity-document-shows-2025-08-28/
2025-08-28 06:07
Summer 2025 set to be UK's warmest on record, says Met Office With no grass on the fields, farmers dip into winter supplies Crisis is driving up costs for farmers MIDDLE DUNTISBOURNE, England Aug 28 (Reuters) - On David Barton's beef farm in the picturesque Cotswolds in western England, months of heat and drought have left his 200 head of Salers, Herefords and Sussexes with nothing but parched fields to pick at. "Look, it's dust," he said, kicking the ground. "This is what you would see in the (United) States or in Australia. You don't see this in England, this is ridiculous." Sign up here. It's the result of England's driest spring in more than 100 years and the driest January-July period since 1929, according to data from the UK's Met Office. It says summer 2025 will likely be the UK's warmest since records began in 1884, moving 2018 off the top spot. "This year is extraordinary, I have never seen anything like it," Barton said. Customers for beef from Manor Farm, which has been in Barton's family for three generations, include upmarket grocer Waitrose and restaurant chain Hawksmoor. Like many livestock farmers across England, he has had no choice but to dip into his winter feed supplies early this year, dramatically increasing his costs. Having given up on grazing two months ago, Barton has been feeding his cows twice a day with a mix of silage, hay and cereals to ensure they get their necessary nutrients. But his herd is still hungry, and chases his tractor across the fields for more food after being fed. WIDER CRISIS Barton's predicament is typical of a wider crisis for British livestock farmers, with many concerned about the welfare of their animals and financial viability amid already-thin profit margins. British beef production was worth over 4 billion pounds ($5.4 billion) last year, according to data from the agriculture ministry. Barton is spending about 1,000 pounds ($1,351) a week more on feed than he normally does at this time of year. With additional production costs not generally linked to his selling price, he faces an expensive winter. "Unfortunately, I will have to take that hit," he said. The crisis also raises questions about Britain's food security, and with producer costs rising, adds further pressure to food prices which have surged this year. Official data earlier this month showed UK food prices were 4.9% higher than a year earlier, with beef costs a key component. While for some arable farmers such as strawberry and raspberry growers, the sunny spring meant bumper yields, crops like brassicas - including broccoli, cabbage and cauliflower - are struggling, with warnings of tight supply. Barton, who is chair of the National Farmers Union's national Livestock Board, said the UK government could have done more to help the industry, which is also reeling from proposed changes to inheritance tax. The government could have temporarily relaxed some environmental schemes so land could have been released for grazing earlier this year, he said. Barton was worried some financially stretched farmers might be forced to reduce the size of their herds. "I'm really concerned that farmers will take a decision to reduce their breeding cow numbers and that's just the last thing we need to do," he said. ($1 = 0.7402 pounds) https://www.reuters.com/sustainability/climate-energy/drought-leaves-uk-beef-farmers-scrambling-feed-hungry-herds-2025-08-28/
2025-08-28 06:06
US PCE data due on Friday Need to see data before considering rate cut - Fed official Aug 28 (Reuters) - Gold prices inched lower on Thursday, as market participants took profits after a recent rally and held back from placing massive bets ahead of U.S. economic data that could clarify the Federal Reserve's interest rate outlook. Spot gold was down 0.2% at $3,389.73 per ounce, as of 0538 GMT. Earlier in the session, bullion touched its highest point since August 11. Sign up here. U.S. gold futures for December delivery eased 0.1% to $3,445.20. "We've got a lot of positive interest for gold because of that sort of issues with institutional trusts and risks about Fed's independence," said Kyle Rodda, Capital.com's financial market analyst. Investors are now awaiting the release of the Personal Consumption Expenditures (PCE) Price Index, the preferred inflation measure of the U.S. Fed, scheduled for Friday. "But we're really looking for something more sort of to push the price above critical level of $3,400 ... the U.S. PCE data will be super significant. We are still bullish on gold. I think all the fundamentals moving in the right direction," he added. Economists polled by Reuters expect the PCE price index (USPCEY=ECI) , opens new tab to rise 2.6% in July, matching the climb from the prior month. Markets are anticipating an over 88% chance of a 25-basis-point rate cut at the Fed's policy meeting next month, according to CME FedWatch Tool. Non-yielding gold typically performs well in a low-interest-rate environment. New York Fed Bank President John Williams said on Wednesday it is likely interest rates can fall at some point but policymakers will need to see what upcoming data indicate about the economy to decide if it's appropriate to make a cut next month. Elsewhere, spot silver was up 0.3% at $38.71 per ounce, platinum was down 0.2% at $1,344.60 and palladium edged 0.1% higher to $1,093.01. https://www.reuters.com/markets/europe/gold-subdued-investors-await-us-data-fed-guidance-2025-08-28/
2025-08-28 05:51
Fed's Williams signals next month's meeting "live" for a rate cut Trump's bid for more Fed control drags on dollar as 2-year yields slide Euro resilient despite potential collapse of French government TOKYO, Aug 28 (Reuters) - The dollar struggled to make headway against major peers on Thursday as traders added to bets for a Federal Reserve interest rate reduction next month after New York Fed chief John Williams signaled a cut was possible. The U.S. currency is also under renewed pressure from President Donald Trump's ramped-up campaign to exert more influence over monetary policy decisions, as he attempts to fire Fed Governor Lisa Cook and replace her with a loyalist. Sign up here. The dollar was on the back foot against the euro even after France's prime minister on Monday unexpectedly called a confidence vote for next month, which is likely to result in the fall of his minority government. The dollar index , which gauges the currency against six major peers, was steady at 98.145, following two days of declines. The euro was little changed at $1.1640, and sterling edged up slightly to $1.3505. The dollar slipped 0.14% to 0.8015 Swiss franc , while sliding 0.19% to 147.11 yen. Japan's chief trade negotiator Ryosei Akazawa canceled a trip to Washington at the last minute on Thursday, delaying an announcement of the details of Japan's $550 billion investment pledge in the United States as part of a tariff deal. A government spokesperson said the decision was taken after talks with the U.S. side revealed some points that need further discussion "at the administrative level". On the U.S. monetary front, the Fed's Williams said in an interview with CNBC on Wednesday that "every meeting is, from my perspective, live." "Risks are more in balance," he said. "We are going to just have to see how the data play out." Key among data releases ahead of the Fed's September 16-17 policy meeting is the PCE price index on Friday - the Fed's preferred inflation measure - and the monthly payrolls report a week later. Traders currently lay around 89% odds of a quarter-point rate cut next month, and have priced in a cumulative 55 basis points of easing by year-end, according to LSEG data. That helped send two-year Treasury yields , which are extremely sensitive to policy expectations, sliding to the lowest level since May 1 overnight, adding to pressure on the dollar. President Trump's push to place hand-picked, dovish-leaning candidates into the central bank's decision-making committee also pulled short-term yields lower, even though his attack on Governor Cook could spark a protracted legal battle after she sued to keep her job. "The crux of the issue lies with whether Trump can remove Cook before March," when the 12 reserve bank presidents have to be reappointed by the board of governors, DBS analysts wrote in a note. In such a case, Trump could install his own, dovish picks, and as a result, "a more aggressive rate cut pace - one every meeting or even jumbo cuts - 50 bps at a go - may be in the offing," they wrote. The dollar edged 0.03% lower to 7.1495 yuan in offshore trading . The Australian dollar was steady at $0.6507, following a 0.4% climb over the previous two sessions. Bitcoin rose 0.4% to around $112,913. (This story has been corrected to say that France's prime minister called the confidence vote on Monday, not on Wednesday, in paragraph 3) https://www.reuters.com/world/middle-east/forex-dollar-defensive-september-fed-cut-bets-ramp-up-2025-08-28/
2025-08-28 05:50
MUMBAI, Aug 28 (Reuters) - The Indian rupee's opening recovery on Thursday quickly faded, with importers stepping up hedges on conviction that the steep U.S. tariffs leave little room for upside. The rupee rose to 87.5250 before drifting weaker on what bankers said was broad-based dollar demand. It was last at 87.6575, nearly unchanged from Tuesday. Indian markets were shut on Wednesday for a local holiday. Sign up here. "Importers are active, and fair enough - they and we are convinced the rupee isn't moving higher from here," said an FX sales dealer at a foreign bank. The extent of rupee weakness is seen largely as a function of the Reserve Bank of India's (RBI) actions. The central bank likely intervened on Tuesday after the currency came under pressure following Washington's confirmation of additional tariffs on Indian goods. In the near-term, the dollar-rupee pair could trade in a range of 87.50–88, with the RBI's intervention determining whether those levels hold, HDFC Bank said. "While for now the central bank could focus on bringing stability in the pair (stalling the rupee's move above 88), an eventual break to a range of 88-88.50 is likely over the coming weeks..." The rupee, in addition to hedging demand, was contending with weak risk appetite. Indian equities slipped on the day, extending Tuesday's selloff. The rupee underperformed most of its Asian peers, which rose on the day, amid expectations of Federal Reserve rate cuts and U.S. President Donald Trump's push to influence the monetary policy. https://www.reuters.com/world/india/rupee-recovery-fizzles-with-us-tariff-woes-fuelling-persistent-dollar-buying-2025-08-28/
2025-08-28 04:39
A look at the day ahead in European and global markets from Gregor Stuart Hunter Tech stocks are pulling back after Nvidia (NVDA.O) , opens new tab released earnings that any other CEO would probably kill for. Sign up here. The chip designer and AI bellwether reported a beat to analysts' estimates and forecast Q3 revenue that was higher than Wall Street estimates. But a miss on data centre revenue and questions over China forecasts sent its shares sliding more than 3% in after-hours trading. "Nvidia's results had to be blemish free and, despite being objectively good, they weren't perfect," said Kyle Rodda, senior market analyst at Capital.com. "With the stock trading at such a high valuation, any bad news was going to be punished." Following two days of gain that have pushed U.S. markets to a record high, S&P 500 e-mini futures fell 0.1% and Nasdaq futures tumbled 0.2% after Nvidia's results. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) , opens new tab swung between gain and loss, and was last down 0.3%. SPILLOVER The chill was felt across the Asian tech sector, as Taiwan Semiconductor Manufacturing Co (2330.TW) , opens new tab tumbled 1.7% and Samsung Electronics (005930.KS) , opens new tab slipped 0.7%, hinting at what may be in store for Dutch chipmaker ASML (ASML.AS) , opens new tab in the European session. Nvidia's Chinese competitors surged, with SMIC (0981.HK) , opens new tab gaining 8.3% and Cambricon Technologies - whose shares have almost tripled since mid-July - adding another 7.1% after the company on Wednesday said it had swung into profit. The two chipmakers pushed the STAR 50 Index of Chinese growth stocks to a gain of as much as 5%. REINING IN EXPECTATIONS French bonds steadied, with the yield on 30-year bonds pulling back from the highest level since November 2011 on Wednesday as traders dialled back expectations of the hit to government borrowing costs from the country's political crisis. In trade news, Japanese stocks fluctuated between gain and loss, with the Nikkei 225 last up 0.6%, after Kyodo news agency reported on Thursday that Japan's top trade negotiator Ryosei Akazawa cancelled a planned visit to the United States, where he was set to iron out details of a trade deal agreed last month. Key developments that could influence markets on Thursday: https://www.reuters.com/world/china/global-markets-view-europe-2025-08-28/
