2025-08-26 11:32

US fuel storage investment in Indonesia discussed Indonesia wants to attract investors into industrial parks Focus on silica sand processing for solar panels, semiconductors JAKARTA, Aug 26 (Reuters) - The United States has agreed in principle to exempt Indonesian exports of cocoa, palm oil and rubber from the 19% tariff imposed by President Donald Trump since August 7, Indonesia's top trade negotiator said on Tuesday. The exemption will take effect once both sides reach a final agreement, but no timeline has been set because the U.S. is busy in tariff talks with other countries, Airlangga Hartarto, who is also the chief economic minister, told Reuters. Sign up here. The two countries also discussed potential U.S. investment in fuel storage in Indonesia in partnership with the Southeast Asian nation's sovereign wealth fund Danantara and state energy firm Pertamina, Airlangga said in an interview. "We are waiting for their response, but during the meeting, basically, the principal (exemption) has been agreed for products not produced in the U.S., such as palm oil and cocoa and rubber ... it will be zero or close to zero," he added. The U.S. embassy in Jakarta did not immediately respond to a request for comment. Indonesia is the world's biggest exporter of palm oil and a major rubber supplier. CERTAINTY ON TARIFFS Indonesia, the region's largest economy, was among the first nations to strike a tariff deal with Trump in July, but Jakarta ended up facing the same rate as some other countries, such as Thailand and Malaysia, and just below Vietnam's figure of 20%. During the talks, Indonesia offered billions of dollars worth of investment in the U.S. and purchases of American crude, LPG, planes and farm products. It also promised zero tariffs on almost all U.S. goods entering its market. Airlangga said certainty over U.S. tariffs and recent progress in talks about a free trade agreement with the European Union could boost Indonesia's economic growth, helping the government reach a 5.4% target for 2026, up from an estimate of about 5% this year. "They bring an optimistic perception from the global market since most investors are looking for certainty and Indonesia is one of the countries that provide global certainty," he said. Jakarta wants to draw foreign investors to help develop industrial facilities, particularly in the processing of its key commodities, Airlangga said, replicating the success the country has seen in bringing Chinese investment into nickel projects. Airlangga said the government is also keen to boost investment in silica sand processing, including the production of solar panels and wafers for semiconductors. https://www.reuters.com/world/asia-pacific/indonesia-says-us-agrees-tariff-exemption-its-palm-oil-cocoa-rubber-2025-08-26/

2025-08-26 11:30

Trump says he is firing Fed governor Lisa Cook President's move fuels concerns over Fed independence Safe haven gold, German bonds rally, oil falls French markets hit by political turmoil LONDON, Aug 26 (Reuters) - Long-dated U.S. Treasuries and stock futures slipped on Tuesday after President Donald Trump said he was firing a Federal Reserve governor, an unprecedented move that fuelled investor concerns about the Fed's independence. French stocks and bonds also tumbled as France's minority government looked increasingly likely to be ousted next month, raising the spectre of renewed political instability in one of the euro zone's biggest economies. Sign up here. World stocks edged off this month's record highs, with focus on U.S. markets after Trump said he was removing Lisa Cook from the Fed's board of directors, citing alleged improprieties in obtaining mortgage loans. Cook said through her lawyers that Trump's "demands lack any proper process, basis or legal authority". Gold prices touched a two-week high, U.S. equity futures , fell and the dollar was on the back foot, as Trump also renewed tariff threats on trade partners. Japan's Nikkei closed down almost 1% (.N225) , opens new tab and Europe's broad STOXX 600 index was last down 0.6% (.STOXX) , opens new tab as the U.S. president's latest salvo on the Fed muddied the outlook for Fed policy. "Since he took office, Trump has managed to get his way on most things he has turned his attention to," said RBC BlueBay Asset Management Chief Investment Officer Mark Dowding. "In this context, it may seem reasonable for markets to conclude that he may end up getting his way with the Federal Reserve." In London trade, the benchmark U.S. 10-year Treasury yield rose 2.5 basis points to 4.30%, while 30-year bond yields rose 4 bps to 4.94%. The two-year Treasury yield, which typically moves in step with interest rate expectations for the Fed, fell 2 bps to 3.71% as investors continue to anticipate lower rates. Trump has regularly threatened to dismiss Fed Chair Jerome Powell, and earlier this month he fired a top Labor Department official after accusing her, without evidence, of manipulating jobs data that had disappointed him. Trump, who lacks the legal authority to fire the Fed chair except "for cause", has backed away from that threat as Powell gets closer to the expiration of his term next May. Cook's exit from the Fed could speed up the president's reshaping of the rate-setting Federal Open Market Committee. Her term had been due to end in 2038. Extending months of turmoil over on-again, off-again tariff policies, Trump also threatened "subsequent additional" import duties on countries with digital taxes. NVIDIA EARNINGS In currency markets, the euro rose around 0.2% to $1.1642. The dollar was also a touch softer at 147.60 yen . That all left the dollar index , which tracks the greenback against a basket of currencies, 0.2% softer after a 0.7% gain on Monday. Tim Graf, head of macro strategy for EMEA, State Street, said he remained bearish on the outlook for the dollar. "We've started to see a lot of selling of the dollar from institutional investors again," he said. "They are willing to build overweights in euros." Friday's U.S. personal consumption prices reading, considered the Fed's preferred inflation gauge, could provide the next steer on the rate outlook, while in stock markets Nvidia earnings on Wednesday were also moving into focus. "Nvidia earnings matter, it will give us insight into the AI space, as well as what’s happening at the current poster-child for the tech sector," said Guy Miller, chief market strategist at Zurich Insurance Group. "It will be interesting to see what guidance is given." FRANCE WOES In Europe, French bonds and stocks tumbled, particularly banking shares, as the minority government looked increasingly likely to be ousted next month. Main opposition parties said they would not back the government in a September 8 confidence vote called by Prime Minister Francois Bayrou over his plans for sweeping budget cuts. France's blue chip CAC40 index was last down 1.5% (.FCHI) , opens new tab with banking giants BNP Paribas (BNPP.PA) , opens new tab and Societe Generale (SOGN.PA) , opens new tab bearing the brunt of selling. France's 10-year government bond yield rose to 3.53%, its highest since March . When a bond's yield rises, its price falls. "We are heading into budget season which is why this (French selloff) is happening," State Street's Graff said. Elsewhere, oil prices fell after surging nearly 2% in the previous session as traders monitor developments surrounding the war in Ukraine and potential disruption to Russian fuel supplies. Brent crude oil weakened 1.5% to $67.78 a barrel and U.S. crude fell 1.7% to $63.71. https://www.reuters.com/world/china/global-markets-wrapup-1-2025-08-26/

2025-08-26 11:30

MOSCOW, Aug 26 (Reuters) - Saudi Arabia and India were the top destinations for Russian seaborne fuel oil and vacuum gasoil (VGO) exports in July, traders said and LSEG data shows. Since the European Union's full embargo on Russian oil products took effect in February 2023, Middle Eastern and Asian countries have become the main destinations for Russia's fuel oil and VGO supplies. Sign up here. Direct fuel oil and VGO shipments from Russian ports to Saudi Arabia totalled about 1.1 million metric tons in July, little changed from June, shipping data showed. Most of the cargoes were destined for power plants because Middle Eastern countries typically burn crude and high-sulphur fuel oil (HSFO) for energy generation between June and August, when air conditioning demand spikes. Russian dark oil products loadings to India rose last month by 65% from June to about 0.6 million tons, LSEG data shows. India imports straight-run fuel oil and VGO from Russia as a cheaper alternative to Urals crude oil in its refinery feedstock pool. Though Russia continues to be the biggest oil supplier to India, oil imports declined in July by a quarter month on month as some refiners slowed purchases owing to smaller discounts. Singapore, Turkey and Senegal were also among the top destinations for Russian fuel oil and VGO export supplies last month, LSEG data showed. All the shipping data above is based on the date of cargo departure. https://www.reuters.com/business/energy/saudi-arabia-india-were-biggest-buyers-russian-fuel-oil-july-data-shows-2025-08-26/

2025-08-26 11:02

LONDON, Aug 26 (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. While markets cheered Federal Reserve Chair Jerome Powell's apparent dovish tilt on interest rates last week, everything's gone flat today, and President Donald Trump’s claim to have fired Fed board member Lisa Cook isn’t helping. Trump’s attempt to fire Cook is based on allegations of improper mortgage borrowing. The legality of this move is unclear, but it has still sparked fresh concerns about the central bank's independence, as her removal would potentially give the president a majority on the Fed board next year. Cook's refusal to accept Trump's announcement sets up a major battle between the White House and the Fed. In response, the 2-to-30-year Treasury yield curve moved to its steepest since January 2022, the dollar dropped lower and U.S. stock futures fell into the red. * Despite Powell's Jackson Hole nod to labor market softness on Friday, forcing many W all Street banks to change their forecasts to see a quarter point rate cut next month, Fed futures are still not fully priced for that outcome - with only an 80% chance of a cut seen. That's partly because August U.S. payrolls and consumer price reports could yet be a game changer in that decision. This week's big economic release is the July PCE inflation report on Friday, with Nvidia's quarterly results tomorrow dominating the corporate diary and holding tech stocks back in advance. The S&P 500 closed in the red on Monday. * Part of the reason why the dollar's initial losses on the Cook announcement weren't larger was that the euro has tensions of its own. France's main stock index (.FCHI) , opens new tab fell 2% and 10-year French bond yields hit their highest since March as three main opposition parties said they would not back a confidence vote, which Prime Minister Francois Bayrou announced for September 8 over his plans for sweeping budget cuts. Shares of French banks BNP Paribas and Societe Generale slumped 6.2% and 5.2%, respectively, with talk of another snap election in the mix. * With last week's tech angst still in the air and Nvidia's report due, Trump on Monday threatened countries that have digital taxes with "subsequent additional tariffs" on their goods. The anxiety ratcheted up on news Trump is considering sanctions on European Union or state officials responsible for implementing the bloc's Digital Services Act on complaints the law censors Americans and imposes costs on U.S. tech firms. Elsewhere, Intel said the U.S. government's 9.9% stake in the chipmaker could pose risks to its business, from potentially harming international sales to limiting its ability to secure future government grants. Today's daily column looks at the lonely plight of the value , opens new tab investor , opens new tab, as a leading light of that strategy refuses to fold. Today's Market Minute * U.S. President Donald Trump on Monday said he was firing Federal Reserve Governor Lisa Cook over alleged improprieties in obtaining mortgage loans, an unprecedented step that could test the boundaries of presidential power over the independent monetary policy body. * Indian exporters are bracing for disruptions after a U.S. Homeland Security notification confirmed Washington would impose an additional 25% tariff on all Indian-origin goods from Wednesday, ramping up trade pressure on the Asian nation. * U.S. and Russian government officials discussed several energy deals on the sidelines of negotiations this month that sought to achieve peace in Ukraine, according to five sources familiar with the talks. * Federal Reserve Chair Jerome Powell is coming under fire for appearing to cave to political pressure in his Jackson Hole speech on Friday, which opened the door to an interest rate cut next month, a shift from his more hawkish stance only a few weeks ago. But the charge is unfair argues ROI markets columnist Jamie McGeever. * China's imports of liquefied natural gas (LNG) are poised to rise for a fourth straight month in August, but, writes ROI columnist Clyde Russell, this may not be quite as bullish as it first appears. Chart of the day Now the world's most valuable company with a market cap of $4.39 trillion, Nvidia's stock has climbed more than 30% so far in 2025, pushing its gain to over 1,400% since October 2022. The California-based company has epitomized the broader AI excitement that has driven up shares of a raft of tech companies and others involved in AI infrastructure, such as power generation and cooling systems. But its explosive growth is inevitably set to slow and Wednesday's results will be forensically examined for bumps in the road ahead. Nvidia options implied a roughly 6% swing for the shares in either direction following the results, which will be reported after markets close. Today's events to watch * U.S. July durable goods orders (8:30 AM EDT), June house prices (9:00 AM EDT), Richmond Fed August business surveys (10:00 AM EDT), Dallas Fed's August services (10:30 AM EDT) * Richmond Federal Reserve President Thomas Barkin speaks; Bank of Canada Governor Tiff Macklem speaks; Bank of England policymaker Catherine Mann speaks * U.S. Treasury sells $69 billion of 2-year notes 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/business/finance/global-markets-view-usa-2025-08-26/

2025-08-26 11:01

French banking giants take biggest hit, down over 6% 'It looks like Bayrou will be gone', investor says Uncertainty comes at a fragile time for global bond markets LONDON, Aug 26 (Reuters) - The prospect that France's minority government could collapse soon triggered a sharp selloff in French stocks and bonds on Tuesday, pushing political risks from the euro zone's second biggest economy back to the forefront of investors' minds. Three main opposition parties said they would not back a confidence vote which Prime Minister Francois Bayrou announced for September 8 over his plans for sweeping budget cuts. Sign up here. France's blue chip CAC40 index fell over 2% (.FCHI) , opens new tab to its lowest level in almost three weeks, having fallen 1.6% late on Monday. Banking giants BNP Paribas (BNPP.PA) , opens new tab and Societe Generale (SOGN.PA) , opens new tab slid more than 6% each, while midcap stocks slid nearly 3%. (.CACMD) , opens new tab Meanwhile, 10-year French government bond yields briefly rose to 3.53%, the highest since March , before steadying at 3.50%. When a bond's yield rises, its price falls. The gap between French and German 10-year yields, a gauge of the premium investors require to hold French debt, widened to around 79 bps -- its largest since April. Analysts had anticipated a return in French political risk come autumn as the government tries to secure support for steps to improve France's fiscal position. But Monday's developments came as a surprise. If Bayrou loses the confidence vote in the National Assembly, his government will fall. President Emmanuel Macron could then name a new prime minister, ask Bayrou to remain head of a caretaker government, or he could call a snap election. "It looks like Bayrou will be gone. It will be hard for Macron to install another Prime Minister if a confidence vote is lost, without going to new Parliamentary elections," said Mark Dowding, chief investment officer for BlueBay fixed income. "This should weigh on French debt in the coming weeks on the risk that Le Pen's National Rally ends up winning a majority," said Dowding, adding that he anticipated a further widening in French bond spreads in the weeks ahead. The German-French spread reached 90 basis points late last year. Meanwhile, the gap between French and Italian 10-year yields, which was around 150 bps two years ago, is now around 10 bps. But French Finance Minister Eric Lombard said on Tuesday he was "certainly not resigned" to the idea of Bayrou's minority government falling next month. Lombard also suggested there was a risk the International Monetary Fund would have to intervene in the economy if France doesn't get its finances in order. Latest developments are also a reminder that French turmoil could temper sentiment towards "Make Europe Great Again" trades, with European economies benefiting from U.S. policy uncertainty and steps to boost long-term growth prospects from heavyweight Germany. HOT SPOT Banks bore the brunt of the selling, with their stocks the biggest faller by some margin in the blue chip index. The cost of insuring Societe Generale's against default rose to its highest since June, and BNP Paribas' to its highest since July. Bank shares are often the first to fall on budget concerns in France. "Higher sovereign spreads normally translate into at least partially higher wholesale funding costs for banks, putting pressure on net interest margins," said Johann Scholtz, senior equity analyst at Morningstar. "The instability also does not augur well for economic growth in France, which feeds through in the outlook for French banks." It's also a fragile time for global bond markets, with investors increasingly worried about high government debt and the ability of big economies to exercise fiscal constraint. Bayrou is trying to tame a budget deficit that hit 5.8% of gross domestic product last year, nearly double the official EU limit of 3%. European markets in addition have seen substantial buying recently, meaning there are plenty of investors left to sell. "There is potential for spread volatility, looking at institutional participation in government bond markets, a lot of money went into Europe," said Tim Graf, head of EMEA macro strategy at State Street. "We are heading into budget season which is why this (the French selloff) is happening," he added, "all of these countries are unable or unwilling to restrain spending, that includes France and Britain." https://www.reuters.com/business/finance/french-stocks-bonds-tumble-government-faces-potential-collapse-2025-08-26/

2025-08-26 10:25

MUMBAI, Aug 26 (Reuters) - The Indian rupee continued its losing streak for a fifth consecutive session on Tuesday as Washington confirmed it will impose an extra 25% levy on Indian goods, clouding the outlook for Asia's third-largest economy. The fall in the rupee was curbed after dollar sales from banks, likely on behalf of the Reserve Bank of India, traders said. Sign up here. U.S. Department of Homeland Security on Monday outlined the procedure to implement additional tariff on Indian goods starting Wednesday. The tariffs risk slowing growth in India as exporters face U.S. duties of up to 50% - among the highest imposed by Washington. Exporter groups estimate that the hikes could affect nearly 55% of India's $87 billion in merchandise exports to the U.S., while benefiting competitors such as Vietnam, Bangladesh and China. The rupee ended at 87.68 against the dollar, the lowest level in three weeks, against 87.58 at the previous close. It came within striking distance of its lifetime low of 87.95 hit in February. "The bias for the rupee is still weak amid imbalance between dollar demand and supply," said Dilip Parmar, currency analyst at HDFC Securities. "Looking at the current market conditions, the rupee's new low is looking imminent. Short term traders will be eyeing trade tariff and GST rate rejig announcement." Parmar expects the rupee to see support at 87.90 near term and for gains to be capped at 87.25. Meanwhile, Asian currencies were mixed, with the dollar index falling after U.S. President Donald Trump ends fired Federal Reserve Governor Lisa Cook over alleged mortgage fraud. The removal comes amid the president's regular threats to fire Fed Chair Jerome Powell. Indian financial markets are closed on Wednesday. https://www.reuters.com/world/india/impending-trump-tariff-hike-pushes-rupee-down-5th-straight-session-2025-08-26/