2025-08-20 19:17
LIMA, Aug 20 (Reuters) - Peru's gold exports to China surged in the first half of 2025 to surpass shipments from all of last year, according to government data released in August. WHY IT'S IMPORTANT Global appetite for gold is rising amid trade tensions between the U.S. and China. Prices for the metal, a safe haven asset whose value typically rises in times of turmoil, hit record levels last year. Sign up here. BY THE NUMBERS Peru's gold exports to China reached $947 million in the first half of 2025, up nearly four times from the same period last year. That figure has been steadily rising. Peru exported $885 million in gold to China in 2024, a 410% increase from the $173 million in exports registered in 2023. Peru's global gold exports surged 46% year-on-year in the six months through June, to total $8.57 billion. CONTEXT China ranks fourth as the biggest gold buyer from Peru, after Canada, India and Switzerland. Local production of the precious metal has grown in recent years, along with concern that increasing amounts come from illegal mines that do not meet environmental regulations and are fueling violence. https://www.reuters.com/world/china/perus-gold-exports-china-through-june-overtake-all-2024-2025-08-20/
2025-08-20 19:12
Trump says Cook must leave Fed over mortgage allegations Cook says she has 'no intention of being bullied' to leave the Fed FHFA director requests US Attorney General Bondi investigate allegations Trump waging effort to gain more influence over Fed WASHINGTON, Aug 20 (Reuters) - President Donald Trump on Wednesday called on Federal Reserve Governor Lisa Cook to resign on the basis of allegations made by one of his political allies about mortgages she holds in Michigan and Georgia, intensifying his effort to gain influence over the U.S. central bank. Cook said she had "no intention of being bullied to step down" from her position at the central bank after U.S. Federal Housing Finance Agency Director William Pulte raised the allegations in a tweet. Sign up here. "I do intend to take any questions about my financial history seriously as a member of the Federal Reserve and so I am gathering the accurate information to answer any legitimate questions and provide the facts," she said in a statement. Trump has also told aides he is considering trying to fire Cook, the first Black woman to serve on the Fed board, the Wall Street Journal reported on Wednesday, citing a senior White House official and another person familiar with the matter. Reuters could not immediately verify the report. The White House declined to comment on the WSJ report. Pulte alleged in a post on X earlier on Wednesday that Cook had designated a condo in Atlanta as her primary residence after taking a loan on her home in Michigan, which she also declared as a primary residence. Pulte told CNBC he is also probing property Cook has in Massachusetts. Loans for a primary residence can carry easier terms than those for second homes or investment properties. Pulte said the loans in question date to mid-2021, before Cook was appointed to the Fed by former President Joe Biden and confirmed by the Senate the following year. Cook, a native of Georgia, was an economics professor at Michigan State University at the time the mortgages were taken out. Pulte asked U.S. Attorney General Pam Bondi to investigate, and Trump quickly amplified the allegation. The Justice Department is taking the matter very seriously, a department official told Reuters. Democrats on the U.S. House of Representatives Committee on Financial Services blasted Trump's attack on Cook and vowed to fight it. "Donald Trump is making up blatant lies in an effort to oust the first Black woman to serve on the Federal Reserve Board, so he can replace her with another unqualified loyalist who will do his bidding," they said in a post on X. "This is another attack on the Fed’s independence. We can’t let this happen." Senator Elizabeth Warren, top Democrat on the Senate Banking Committee, echoed those concerns, saying in a statement: "The president and his administration should not weaponize the federal government to illegally fire independent Fed Board members." Cook's federally filed financial disclosure documents show three mortgages taken out in 2021, including a 15-year 2.5% loan on an investment property and two loans for personal residences, including a 30-year 3.25% mortgage and a 15-year 2.875% mortgage. The weekly average rate for 30-year loans during 2021 ranged between 2.9% and 3.3%, Mortgage Bankers Association data shows. Cook started at the Fed in 2022 and was reappointed to a 14-year term in 2023. "Cook must resign, now!!!" Trump wrote in a post on his social media platform, his latest remarks aimed at reshaping the U.S. central bank, a body designed to set benchmark interest rates independent of White House influence. The Trump administration has used mortgage fraud investigations to go after a number of other political enemies, including Democratic New York State Attorney General Letitia James, who brought a civil fraud case against Trump for lying about his net worth to obtain his own favorable bank loans as he built his real estate empire. That case resulted in a $355 million judgment against Trump last year, which the president is appealing. Earlier this summer, Pulte asked the Justice Department to investigate alleged mortgage fraud by Democratic U.S. Senator Adam Schiff, who ran the House of Representatives' 2019 impeachment trial against Trump. James and Schiff have both denied wrongdoing. FED BOARD COMPOSITION While the Justice Department will review the mortgage fraud referrals, proving criminal liability will be a challenge, a person familiar with the matter told Reuters. One challenge is that in many instances, even if a person wrongfully claims a home to be a primary residence, the mortgage company is often aware of all the facts and does not believe the home is being used as such. The person, who spoke on condition of anonymity, compared some of the fraud claims to flaws in the civil fraud case that James brought against Trump, noting that the bank never gave him credit for a condo which he allegedly overvalued. It also is not clear if a person needs to live in the property for it to be counted as a primary residence, the person added. "Mortgage fraud is really about deceiving the banks to get a better loan." Cook is among three Biden Fed appointees whose terms extend beyond Trump's time in office, complicating the president's efforts to gain more control by appointing a majority of its seven-member Board of Governors. Two of the Fed's remaining six board members were appointed by Trump - Governor Christopher Waller and Vice Chair for Supervision Michelle Bowman. Trump has repeatedly criticized Fed Chair Jerome Powell over benchmark interest rates that he wants sharply reduced, calling for his resignation while acknowledging that the Fed's unique status in U.S. governance prevents him from firing its board members over monetary policy disputes. The president can name a new Fed chief when Powell's term ends in May, but claiming a majority on the board may take more time. Powell could continue serving as a Fed governor until 2028, near the end of Trump's term. Until Powell's departure, Trump has only one other seat to fill, the one vacated recently through the surprise resignation of former Fed Governor Adriana Kugler, the first Latina to serve on the Fed board. Earlier this month, Trump nominated Council of Economic Advisers Chair Stephen Miran to serve out the rest of her term. https://www.reuters.com/world/us/trump-calls-fed-governor-cook-resign-over-mortgage-allegations-2025-08-20/
2025-08-20 18:58
Dollar falls as Trump calls on Fed's Cook to resign Fed meeting minutes show only two policymakers supported rate cut NZ dollar at four-month low as RBNZ flags further rate cuts NEW YORK, Aug 20 (Reuters) - The dollar fell on Wednesday after U.S. President Donald Trump called on Federal Reserve Governor Lisa Cook to resign, but pared gains after minutes from the Fed's latest meeting showed that only two policymakers supported an interest rate cut last month. Trump cited allegations made by one of his political allies about mortgages Cook holds in Michigan and Georgia, intensifying his effort to gain influence over the U.S. central bank. Sign up here. Trump has also told aides he is considering attempting to fire Cook, the Wall Street Journal reported on Wednesday. “The market has voted with its pocketbook that it doesn't like when the president interferes with the Federal Reserve,” said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York. Trump has been critical of Fed Chair Jerome Powell for being too slow to cut rates, and traders expect he will replace Powell with a more dovish appointment when his term ends in May. But Powell may stay on the board of governors, which would limit how many appointments Trump may make and could crimp plans to form a more dovish composition of policymakers. “This is just a thinly veiled attempt to get control of the Federal Reserve, because if Powell doesn't step down as Governor when his chair ends, Trump's only appointment is the Kugler seat that he gave to Miran temporarily,” Chandler said. Trump earlier this month said he would nominate Council of Economic Advisers Chairman Stephen Miran to serve out the final few months of a vacant Fed seat after Fed Governor Adriana Kugler unexpectedly resigned. The greenback came off its lows after minutes from the Fed's July 29-30 meeting showed that the two Fed policymakers who dissented against the U.S. central bank decision to leave interest rates unchanged last month appear not to have been joined by other policymakers in voicing support for lowering rates at that meeting. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, was last down 0.13% on the day at 98.20, with the euro up 0.09% at $1.1657. The Japanese yen strengthened 0.32% against the greenback to 147.2 per dollar. Traders are focused this week on whether Powell will push back against market expectations for a rate cut at the Fed’s September 16-17 meeting when he speaks at the U.S. central bank’s Jackson Hole meeting on Friday, following a weak jobs report for July. Powell has said he is reluctant to cut rates on expectations that Trump’s tariff policies will increase inflation this summer. Consumer price inflation data for July showed limited impact from tariffs but hotter than expected producer price inflation has tempered expectations for how many cuts are likely this year. Fed funds futures traders are currently pricing in 83% odds of a cut next month, and 54 basis points of cuts by year-end. The New Zealand dollar dropped 1.12% to $0.5826, a four month low, after the country’s central bank cut its policy rate by 25 basis points to a three-year low of 3.00% and flagged further reductions in coming months as policymakers warned of domestic and global headwinds to growth. The Swedish crown strengthened 0.1% to 9.59 after Sweden's central bank held its key interest rate at 2.00% as expected. Sterling weakened 0.3% to $1.3449 after British inflation hit its highest in 18 months in July, but was not seen as swaying Bank of England policy. "The BoE is more concerned about food inflation, which hasn't changed much in today's release," ING's head of research Chris Turner said. In cryptocurrencies, bitcoin fell 0.22% to $113,322. https://www.reuters.com/world/middle-east/dollar-falls-trump-calls-feds-cook-resign-2025-08-20/
2025-08-20 18:42
Trump calls on Fed Governor Cook to resign Goldman Sachs maintain gold $4,000/toz forecast for mid-2026 Platinum up over 2% Aug 20 (Reuters) - Gold rose on Wednesday as the U.S. dollar eased, with market participants bracing for the upcoming Jackson Hole symposium, while minutes revealed that Federal Reserve dissenters appeared alone in favoring a rate cut at the July meeting. Spot gold gained 0.9% to $3,344.37 per ounce, by 2:23 p.m. EDT (1823 GMT) after hitting its lowest level since August 1 earlier. U.S. gold futures closed 0.9% higher at $3,388.50. Sign up here. The U.S. dollar eased, making dollar-priced bullion more affordable for other currency holders. USD The two Federal Reserve policymakers who dissented against last month's decision to keep interest rates unchanged - Vice Chair for Supervision Michelle Bowman and Governor Christopher Waller - appeared to be alone in advocating for a rate cut, a readout of the gathering released showed. Within 48 hours of the meeting's conclusion, weaker-than-expected jobs data seemed to validate their concerns. "Traders are shrugging this off as they view this news as stale as it came before the shocking employment report," said Tai Wong, an independent metals trader. Market spotlight shifted to Fed Chair Jerome Powell's speech at the annual Jackson Hole economic symposium on Friday. "If Powell is dovish, it's bullish for gold, as it does not bear interest. It will need to break through $3,350/oz and then ultimately retest $3,400/oz if he's dovish," said RJO Futures market strategist Bob Haberkorn. Traders currently expect an 83% chance of a quarter-point rate cut in September, according to the CME FedWatch tool. Goldman Sachs maintained its $4,000/toz mid-2026 forecast, citing structurally strong central bank demand, ETF inflows supported by Fed easing, and a 30% probability of a U.S. recession within 12 months. Meanwhile, U.S. President Donald Trump called on Federal Reserve Governor Lisa Cook to resign over mortgage allegations, intensifying his effort to gain influence over the U.S. central bank. Among other metals, spot silver rose 1.1% to $37.78 per ounce, platinum gained 2.1% to $1,333.43 while palladium steadied at $1,115.15. https://www.reuters.com/world/china/gold-firms-dollar-weakens-focus-jackson-hole-2025-08-20/
2025-08-20 18:27
BERLIN, Aug 20 (Reuters) - China has requested dispute consultations at the World Trade Organization regarding Canadian surtaxes and quotas on steel and aluminum goods, the WTO said on Wednesday. The disputed measures include a surtax in the form of tariff-rate quotas on certain steel imports originating from Canada's non-free trade agreement partners, including China, a notice from the WTO said. Sign up here. China is also challenging a surtax on certain goods that contain steel or aluminum originating from China, it added. Prime Minister Mark Carney, trying to protect the domestic steel industry, last month said Canada would implement 25% tariffs on steel imports from all countries containing steel melted and poured in China before the end of July. "We will not hesitate to act when our industries are threatened by unfair practices," said Huzaif Qaisar, a spokesman for Trade Minister Maninder Sidhu. "These measures are a direct response to China's over capacity and non-market behavior, which are undermining Canada’s steel sector and threatening Canadian jobs," he said by email. https://www.reuters.com/markets/commodities/china-launches-wto-dispute-with-canada-steel-aluminum-surtaxes-2025-08-20/
2025-08-20 18:22
State of emergency declared in North Carolina by Governor Stein Evacuations ordered for Ocracoke and Hatteras islands NHC warns of life-threatening surf and rip currents along East Coast Aug 20 (Reuters) - Hurricane Erin, churning north in the Atlantic hundreds of miles offshore, is expected to trigger a dangerous storm surge and tropical storm conditions on Wednesday along North Carolina’s Outer Banks and other stretches of the U.S. East Coast. The National Hurricane Center warned that roads in the low-lying barrier islands may become impassable, with waves as high as 20 feet crashing ashore. The heavy surf is likely to result in significant beach erosion, it said in its 8 a.m. EDT update. Sign up here. North Carolina Governor Josh Stein declared a state of emergency on Tuesday, freeing up state money and manpower to help during the storm and its aftermath. Tropical storm and storm-surge warnings are in place for other parts of the North Carolina coastline. Earlier in the week, the coastal counties of Dare and Hyde - which encompass most of the Outer Banks - ordered residents and tourists to evacuate the vulnerable Ocracoke and Hatteras islands, whose populations swell during the summer months. Local media reported that ferries took more than 2,220 people off Ocracoke, with the final sailing scheduled for 11 a.m. on Wednesday. Ferries to Hatteras will keep operating as long as conditions allow, ABC News affiliate WCTI reported. But Chris Styron, manager of the Pony Island Inn on Ocracoke, is ignoring the evacuation orders and staying to watch over the 50-room hotel. "We're used to storms like this," Styron said. "I'm born and raised here. We're not really worried - it's so far offshore." The eye of Erin, rated as a Category 2 storm with sustained winds of 100 mph (155 km/h), was expected to move midway between the U.S. East Coast and Bermuda on Wednesday and Thursday as it traveled northward, the NHC said. That trajectory will keep the worst of its winds offshore. Tropical-storm-force winds extend up to 265 miles (426 km) from the storm’s center, with hurricane-force winds extending for 90 miles. Even so, the NHC warned beachgoers along most of the East Coast to stay out of the water because of "life-threatening surf and rip currents." Along the New Jersey shore, swimming and other water activities were prohibited on beaches from Cape May north to Sandy Hook, with high surf and rip current warnings in effect into Friday, the NWS said. Coastal flooding is expected to peak during high tide on Thursday. New York City Mayor Eric Adams ordered all city public beaches - including Coney Island and Brighton Beach - to close Wednesday and Thursday. Fortunately, temperatures in New York were expected to be seasonably cool on Wednesday and Thursday, with highs only reaching 70 F, well below the average of 82 F. Erin, the fifth named storm of the 2025 Atlantic season and the first to attain hurricane status, had strengthened to a Category 5 storm. The last Atlantic storm to reach that intensity was Hurricane Milton in October 2024. https://www.reuters.com/business/environment/hurricane-erin-threatens-north-carolinas-outer-banks-with-storm-surge-2025-08-20/
