2025-08-27 11:47

US dollar up 0.4% Fed's Cook will file lawsuit to keep job, lawyer says Focus on US PCE data due on Friday Aug 27 (Reuters) - Gold slipped on Wednesday as the dollar firmed and investors booked profits after prices hit a more than two-week high in the previous session. Spot gold was down 0.5% at $3,375.79 per ounce at 1119 GMT. U.S. gold futures for December delivery eased 0.2% to $3,425.10. Sign up here. The dollar index (.DXY) , opens new tab, which measures the greenback against a basket of major currencies, rose about 0.4%, making dollar-priced bullion more expensive for other currency holders. "(Gold) prices are acting less like an arrow and more like a feather, with the prevailing direction of travel determined by the dollar. Current gold price weakness is likely attributable to some profit-taking...as momentum faded to the upside," independent analyst Ross Norman said. Bullion hit its highest since August 11 on Tuesday after U.S. President Donald Trump's attempt to fire Fed Governor Lisa Cook undermined confidence in the independence of the central bank and more broadly in U.S. assets, boosting safe-haven demand. Cook will file a lawsuit to prevent Trump from firing her, her lawyer said, kicking off what could be a protracted legal fight over the White House's effort to shape U.S. monetary policy. "Market participants will await the decision of U.S. courts (regarding whether) Trump can fire Cook or not, before gold reacts more strongly," UBS analyst Giovanni Staunovo added. The data focus is on the Fed's preferred inflation gauge, the Personal Consumption Expenditures Price Index, due on Friday, after dovish remarks from Fed Chair Jerome Powell at the Jackson Hole symposium last week. Markets have priced in an 87% chance of a quarter-point rate cut at the Fed's September 17 policy meeting, according to the CME FedWatch Tool. Non-yielding gold typically performs well in a low-interest-rate environment. Spot silver fell 0.8% to $38.27 per ounce, platinum was also down 0.8% at $1,337.38 and palladium was 0.2% lower at $1,091.99. https://www.reuters.com/world/india/gold-eases-firmer-dollar-profit-taking-2025-08-27/

2025-08-27 11:45

Aug 27 (Reuters) - Harvest Midstream, owned by the founder of privately held Hilcorp Energy, has agreed a deal to acquire $1 billion worth of natural gas gathering and processing assets from MPLX (MPLX.N) , opens new tab, the companies said on Wednesday. Houston-based Harvest holds midstream assets in multiple oil and gas plays, notably in Alaska and the Bakken shale of North Dakota. It was founded by billionaire businessman Jeff Hildebrand, who also owns Hilcorp, one of the largest U.S. private oil and gas companies. Sign up here. Shares of MPLX gained more than 1.4% in the premarket trading. Reuters had reported the news earlier in the day, citing people familiar with the matter. Under the agreement, Harvest will dedicate around 12 thousand barrels per day of natural gas liquids from these assets to MPLX for seven years beginning 2028. The deal with MPLX will allow Harvest to expand its operations into the Uinta and Green River shale basins, which collectively stretch across Utah, Colorado and Wyoming. Harvest is set to buy about 1,500 miles (2,414 km) of pipelines that transport natural gas from the wellhead to larger lines that link with consumers, as well as 1.2 billion cubic feet per day of processing capacity, the companies said. The transaction is expected to close in the fourth quarter. For MPLX, the deal comes as the company is focusing more investment on the Permian Basin of Texas and New Mexico. MPLX has struck around $3.5 billion of acquisitions in 2025, according to an August 5 analyst call. The activity has been centered on the Permian and the most recent one was an agreement to buy Northwind Midstream for nearly $2.4 billion. The company, alongside WhiteWater and other partners, on Monday announced the final investment decision on the Eiger Express Pipeline, a new natural gas pipeline linking the Permian with export facilities on the U.S. Gulf coast. https://www.reuters.com/business/energy/jeff-hildebrands-harvest-midstream-buy-some-mplx-pipeline-assets-1-billion-2025-08-27/

2025-08-27 11:20

BRUSSELS, Aug 27 (Reuters) - European Union targets to cut CO2 emissions from vehicles, including a 100% reduction for cars by 2035, are no longer feasible, the heads of the European automobile manufacturers' and automotive suppliers' associations said on Wednesday. European Commission President Ursula von der Leyen is set to host automotive sector executives on September 12 to discuss the future of the sector, which is facing twin threats of Chinese competition in electric vehicles and U.S. tariffs. Sign up here. In a letter to von der Leyen, Mercedes-Benz (MBGn.DE) , opens new tab CEO Ola Kaellenius and Matthias Zink, CEO of powertrain and chassis at Schaeffler AG (SHA0n.DE) , opens new tab, said they were committed to achieving the EU's net zero goal in 2050. However, they said EU manufacturers now faced near-total dependency on Asia for batteries, as well as uneven charging infrastructure, higher manufacturing costs and U.S. tariffs. The bloc needed to go beyond new-vehicle targets, they argued, such as 55% CO2 emissions reductions from 2021 levels for cars and 50% for vans by 2030 and of 100% for both by 2035. Electric cars have a market share of around 15% of new EU cars, with vans at 9%. "Meeting the rigid car and van CO2 targets for 2030 and 2035 is, in today’s world, simply no longer feasible," they wrote. Legal mandates and penalties would not drive the transition, they wrote. "EVs will lead the charge, but there must also be space for (plug-in) hybrids, range extenders, highly efficient internal-combustion engine vehicles, hydrogen and decarbonised fuels," the letter said. CO2 regulation for heavy-duty trucks and buses must also be reviewed, the two association chiefs said. In March, the Commission agreed to give automakers extra time to meet CO2 emission reduction targets initially set for 2025. Members of von der Leyen's centre-right grouping have also called for the EU to withdraw its 2035 ban on combustion engines. https://www.reuters.com/sustainability/boards-policy-regulation/eu-auto-groups-press-change-no-longer-feasible-car-co2-emission-targets-2025-08-27/

2025-08-27 11:13

Election takes places September 7-8 Tight contest between centre-left and centre-right blocs Cost of living and inequality central to campaign OSLO, Aug 27 (Reuters) - Norway's general election on September 7-8 is expected to be a close race between a centre-left bloc led by the incumbent Labour Party, and a centre-right bloc dominated by the populist Progress Party and centre-right Conservatives. Among the issues that could decide the vote are inequality and taxation, while the outcome could have an impact on energy and power supplies to Europe and the management of Norway's huge sovereign fund. Sign up here. WHAT'S AT STAKE? Prime Minister Jonas Gahr Stoere's Labour is looking to extend its rule after returning to power in 2021, following eight years of Conservative-led governments. Labour has led a minority government, supported by the Socialist Left and the rural-based Centre Party. Inequality tops voters' list of concerns, according to an August 7-13 survey by Respons Analyse for daily Aftenposten, replacing defence and national security, which slipped to sixth place since a similar poll in April. Cost of living and pocketbook issues have been central to the campaign, with food price inflation at 5.9% in the last 12 months. The economy, jobs and taxes are also high priorities for voters, the survey showed. While Labour favours broadly stable taxes, some of its allies seek stiffer rates for the wealthy to finance tax cuts for low-income families and expanded public services. Progress and the Conservatives both advocate large tax cuts. SOVEREIGN WEALTH FUND Norway's $2 trillion wealth fund, built on vast oil and gas income, allows governments to spend much more freely than fellow European countries, though the need to control inflation and interest rates are constraining factors. A debate over investments in Israel took centre stage at the beginning of the campaign, sparking an unusually public debate over how the world's largest sovereign fund operates. The Socialist Left last week said it would only support a future Labour government if it divested from all companies involved in what it called "Israel's illegal warfare in Gaza". Labour rejected the demand, but it may be difficult to rebuff such calls after the election. OIL AND GAS Norway is Europe's top gas supplier, replacing Gazprom after Russia's 2022 invasion of Ukraine. Its role is set to grow as the European Union plans to phase out use of Russian gas by 2027, but exploiting new oil and gas reserves is critical to slowing down an expected production decline. The election could decide whether Norway opens new areas for exploration, or if oil companies will remain restricted to existing ones, depending on the influence wielded by the Greens, Liberals and other small parties. More radical proposals to stop exploration completely are unlikely to gather sufficient support. POWER Norway produces more power than it consumes and exports the surplus to Europe. Still, some left-wing and right-wing parties are campaigning on limiting exports to the continent. If that happened, it would be a problem for Norway's neighbours and Brussels. Norway is not in the EU but is part of the single European market and must respect its rules. Restricting power exports would breach them. Parties are also divided over how to meet growing domestic demand that is eroding Norway's surplus, with little generation capacity added in recent years. Wind on land, solar and new hydropower are relatively cheap and quick to build, but face local protests over their ecological impact. Offshore wind is controversial due to its high costs. HOW DOES IT WORK? Norway has a system of proportional representation whereby 169 lawmakers are elected from 19 geographical districts for a fixed, four-year term. Any party scoring above 4% support nationwide is guaranteed representation, although a strong showing in individual districts can also yield one or more seats. No party is expected to win the 85 seats required for an outright majority, so continued minority rule under Labour or the formation of a coalition are the likeliest outcomes. Polls show nine parties are expected to win seats. On the left, Labour, the Socialists, the Greens, Centre and the Reds; and on the right, the Conservatives, Progress, the Christian Democrats and the Liberals. If the centre-left wins, Labour's Stoere is expected to remain in office, while a centre-right win could see either Progress Party leader Sylvi Listhaug or Conservative Party head Erna Solberg become prime minister. RESULTS The ballot ends on September 8 at 1900 GMT, when the first exit polls are expected. Results could become clear late that evening, though the final outcome may not be known until the following day. The exact combination of parties in the cabinet will depend on post-election negotiations. https://www.reuters.com/business/finance/what-you-need-know-about-norways-upcoming-election-2025-08-27/

2025-08-27 10:51

LONDON, Aug 27 (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. It's hard for markets to see much beyond tonight's earnings from AI-lodestar Nvidia, but political tensions surrounding the Federal Reserve have seen two-year Treasury yields plunge to near four month lows and the 2-30 year yield curve steepen more. Emboldened by brisk demand at Tuesday's auction, the intensifying political pressure on the Fed to slash interest rates and now the possibility of another Trump appointee replacing Lisa Cook on the board have sent two-year Treasury yields sliding to their lowest since May 1 at 3.65% - even as 30-year yields remain above 4.90%. Futures still only see an 80% chance of a cut in the 4.25%-4.50% policy rate in September, but the betting on where rates will be in a year's time has dropped 25 basis points over the past month to as low as 2.92%. * The standoff between the Fed and the White House over Cook's position remains uncertain as she seems set to seek a legal injunction to stay in position, presumably for the September policy meeting, while courts rule on President Donald Trump's ability to remove her. Most investors see Fed independence at the heart of the row and, as it stands, the market's main move is to steepen the yield curve to its widest in more than three years to account for early easing, but also rising inflation expectations on a view those cuts may not be appropriate. * Aside from the Nvidia vigil, which options markets suggest could see a 6% swing either way in its share price and up to 1% swing in the S&P500, Wall Street stocks riffed off the mounting rate cut speculation and ended higher on Tuesday. Futures were flatter ahead of today's bell. The dollar was firmer despite the drop in 2-year yields, but its moves have been hampered by the euro's reaction to a flare-up in French political tensions this week - with the government there possibly collapsing again in a budget confidence vote set for September 8. A heavy sell-off in French stocks and bonds on Tuesday calmed somewhat today, with France's 30-year bond yield pausing close to new 14 year highs. * India's rupee fell close to the year's lows as Trump's doubling of tariffs on imports from India to as much as 50% took effect as scheduled on Wednesday, delivering a serious blow to ties between the two countries. China's stocks underperformed generally positive world stock markets after news China's industrial profits fell for a third consecutive month in July, with businesses struggling in the face of subdued demand and persistent factory-gate deflation despite policy measures to help shore up the economic recovery. Today's column looks at the AA+ U.S. sovereign credit rating, both how tariff revenues are supporting the stable outlook and also what's behind the market's more skeptical view of U.S. creditworthiness. Today's Market Minute * U.S. President Donald Trump's doubling of tariffs on goods from India to as much as 50% took effect as scheduled on Wednesday, escalating tensions between the world's two largest democracies and strategic partners. * Nvidia's (NVDA.O) business in China will be the focus of investors when the AI chipmaker reports earnings on Wednesday, following an unusual deal with the Trump administration and Beijing's subsequent efforts to stall imports. * Federal Reserve Governor Lisa Cook will file a lawsuit to prevent President Donald Trump from firing her, a lawyer for the embattled central bank official said on Tuesday, kicking off what could be a protracted legal fight over the White House's effort to shape U.S. monetary policy. * The increased U.S. tariffs on Indian goods are a textbook example of a lose-lose situation for both countries, but, writes ROI columnist Clyde Russell, they are perversely a win for the intended target, Russia. * Questions are arising about the hype surrounding artificial intelligence. Nvidia's quarterly results this week could therefore potentially be explosive – not just for the company's shares or the tech sector, but for all of Wall Street, argues ROI markets columnist Jamie McGeever. Chart of the day The Conference Board's monthly surveyofU.S.consumersshowedperceptionsoftheabilitytofindajobwereattheirweakestinmorethanfouryearsinAugust,reinforcingtherecentFeddovishnessabouttheunfoldingstateofthelabormarket.Thesurveyshowedtheshareofconsumerswhoviewedjobsas"hardtoget"jumpedto20.0%inAugust,thehighestsinceFebruary2021,from18.9%inJuly. The proportion saying jobs were "plentiful" eased slightly. That pushed the survey's so-called labor market differential down to 9.7 from 11.0 in July. And that measure tends to correlate to the unemployment rate in the Labor Department's monthly employment report. The headache for the Fed of course is that inflation expectations are rising in tandem - consumers' average 12-month inflation view rose to 6.2% after easing for three straight months. Today's events to watch * Richmond Federal Reserve President Thomas Barkin speaks * U.S. corporate earnings: Nvidia, HP, Agilent, CrowdStrike, NetApp, Williams-Sonoma, JM Smucker * U.S. Treasury sells $70 billion of 5-year notes, $28 billion of 2-year floating rate notes * French President Emmanuel Macron, German Chancellor Friedrich Merz and Polish Prime Minister Donald Tusk visit Moldova 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 Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles , opens new tab, is committed to integrity, independence, and freedom from bias. https://www.reuters.com/world/europe/global-markets-view-usa-2025-08-27/

2025-08-27 10:34

August 27 (Reuters) - Sterling slipped on Wednesday as the U.S. dollar firmed against major currencies, recouping losses spurred by investor worries over independence of the U.S. Federal Reserve while traders also digested UK's producer price inflation data. The UK unit was down 0.33% at $1.3434, trailing a fall in the euro which declined 0.5% to $1.1584. Sign up here. While the dollar had initially weakened on Tuesday following U.S. President Donald Trump's move to oust Fed Governor Lisa Cook over alleged improprieties in obtaining mortgage loans, that reaction was shortlived, and the greenback was last up 0.3% at 98.6 against a basket of peers . On the month, sterling remains on course to end higher by about 1.5% against the U.S. dollar, comforted by a pullback in expectations of rate cuts by the Bank of England and buoyant economic data. "A more persistent hold on Bank Rate is appropriate right now, to maintain the tight - but not tighter - monetary policy stance needed to lean against inflation persistence persisting," Bank of England Monetary Policy Committee member Catherine Mann said in remarks released by the BoE on Tuesday. British producer output price inflation rose to a two-year peak of 1.9% year-on-year in June, according to preliminary official data released on Wednesday. The producer price data trails a consumer inflation report which showed that British CPI rose to an 18-month high of 3.8% in July. Money markets are pricing in around a 40% chance of a BoE rate cut before the end of the year. Against the euro, the balance of risks for sterling is tilted to the upside with "the hawkish repricing in Bank of England rate expectations still underpinning decent GBP short-term momentum," Francesco Pesole, an FX strategist at ING said in a note. "In GBP/USD, we still think a structural break above 1.35 is a matter of when rather than if," the note said. On Tuesday, sterling was a tad higher against the euro at 86.22 pence to the common currency . https://www.reuters.com/markets/europe/sterling-retreats-dollar-rebounds-traders-digest-british-ppi-2025-08-27/