2025-08-20 10:26
KYIV, Aug 20 (Reuters) - Russia struck a gas distribution station in the southern Ukraine region of Odesa on Wednesday, Ukrainian President Volodymyr Zelenskiy said, adding this showed the need to put economic pressure on Russia amid current U.S. efforts to end the war. "All of these are demonstrative strikes that only confirm the need to put pressure on Moscow, the need to impose new sanctions and tariffs until diplomacy is fully effective," Zelenskiy wrote on X. Sign up here. Zelenskiy did not specify how important the gas station is. Local authorities did not report any problems with gas supplies in the region. Ukraine uses gas not only for industrial needs, but also for heating homes and cooking. The Russian Defence Ministry confirmed the attack on what it said was port infrastructure "used to supply fuel to Ukrainian forces". In recent weeks, Russian forces have intensified attacks on gas and energy infrastructure, attacking a gas interconnector with Romania and fuel depots in several regions in early August. Ukraine has called on Baku to respond to Russian attacks on assets of Azerbaijani state-owned company SOCAR in the Odesa region. Ukrainian authorities say that Russia is trying to disrupt Ukraine's preparations for the winter heating season with its attacks. Ukraine has faced a serious gas shortage since a series of devastating Russian missile strikes this year, which significantly reduced domestic production. Ukrainian forces have also stepped up attacks on Russia's energy infrastructure, a key conduit for generating money for Kremlin's war efforts. Oil is once again flowing to Hungary and Slovakia via the Druzhba pipeline, officials from both countries said late on Tuesday, after a Ukrainian drone strike on an oil pumping station in Russia's Tambov region halted supplies. https://www.reuters.com/business/energy/ukraines-zelenskiy-says-russia-struck-gas-distribution-station-odesa-region-2025-08-20/
2025-08-20 10:02
LONDON, Aug 20 (Reuters) - The British pound rose marginally against the dollar and euro on Wednesday after data showed inflation hit its highest in 18 months in July, with markets not fully pricing the next rate cut from the Bank of England until well into next year. The headline consumer price index increased to 3.8% from 3.6%, official data showed, while inflation in the services sector, which is closely watched by the BoE, accelerated to 5% from 4.7% a month earlier. Sign up here. Economists surveyed by Reuters had expected headline inflation at 3.7% in July, while the BoE had forecast it to rise to 3.8%. The biggest contributor to July's inflation rise came from transport costs, particularly air fares. "What is really striking is that its the volatile air fares component that was driving the majority of the topside surprise," said Danske Bank FX analyst Kirstine Kundby-Nielsen. "It's something that is more volatile and something that the Bank of England doesn't necessarily put too much weight on." The pound rose 0.1% against the dollar to $1.3501. The pound was also up 0.1% at 86.18 pence per euro . The BoE cut its bank rate earlier this month but only after a tight 5-4 vote, with a large minority on the rate-setting Monetary Policy Committee (MPC) worried about sticky price pressures. The next 25 basis point rate cut is not fully priced until March 2026, while a move by the end of the year is about a 50-50 chance. "The MPC may look for more patience going forward as it grapples with an uncomfortable trade-off: high near-term price momentum versus sluggish labour market data," said Sanjay Raja, chief UK economist at Deutsche Bank in a note. https://www.reuters.com/world/uk/sterling-edges-up-inflation-rises-highest-1-12-years-2025-08-20/
2025-08-20 08:56
2025 GDP growth outlook seen above midpoint of 4.6%-5.4% BI has cut rates by 125 bps since September Government says there is room for more easing July loan growth at weakest since March 2022 JAKARTA, Aug 20 (Reuters) - Indonesia's central bank cut interest rates again in a surprise move on Wednesday and flagged it could cut some more, as it stepped up support for Southeast Asia's largest economy against the backdrop of global uncertainties. Bank Indonesia (BI) trimmed the benchmark 7-day reverse repurchase rate (IDCBRR=ECI) , opens new tab by 25 basis points to 5.00%, its fifth rate cut since September, taking it to its lowest level since late 2022. Sign up here. Only five of 29 economists polled by Reuters had expected a cut. The rest expected rates to be kept steady. Governor Perry Warjiyo told a press conference that the decision was in line with expectations of low inflation and a stable rupiah, as well as the need to bolster economic activity. GDP growth is expected to accelerate to around 5.1% or higher in 2025, above the midpoint of BI's official outlook range of 4.6% to 5.4%, Warjiyo said, and compared with 5.03% in 2024. "The capacity of the economy is still larger than the demand. That is why we have lowered interest rates ... and we will continue to assess room for further rate cuts," the governor said. Warjiyo was upbeat about growth prospects in the second half, citing the impact of BI's monetary easing and the acceleration of government spending. Wednesday's rate cut was BI's fifth since last September, with a total reduction of 125 basis points. It was the first time during the easing cycle that it has made cuts at consecutive meetings. The decision followed data earlier this month showing that economic growth accelerated to 5.12% in the second quarter, the fastest annual pace in two years, driven by robust investment and household spending. Some economists questioned the strength of that data, pointing to indicators showing weakening domestic demand, while others have taken note of looming headwinds to growth caused by U.S. tariffs. "First-half growth may have come in stronger than expected, but the second half holds challenges given higher U.S. tariffs and still-fragile consumer confidence," said Maybank economist Brian Lee. Indonesia's exports to the United States have been subject to a 19% tariff since August 7, the same level as Thailand, Malaysia, the Philippines and Cambodia. In a sign of demand remaining soft in the current quarter, July loan growth slowed to 7.03%, the lowest since March 2022. BI blamed this on banks preferring to park excess liquidity in securities instead of lending and reducing their lending rates at a slower pace. "Bank Indonesia is clearly keen to support economic growth and, so long as inflation remains contained and the rupiah holds up well, there is probably scope for a bit more monetary easing over the coming months," Jason Tuvey, Capital Economics' analyst wrote in a note, predicting further cuts taking the benchmark to 4.50% by year-end. Maybank's Lee forecast cuts of 50 bps more this year and another 50 bps next year to bolster growth, noting the government's 5.4% growth target for 2026, which President Prabowo Subianto unveiled last week. Prabowo proposed to parliament a $234 billion budget for 2026, a 7.3% increase from this year's budget outlook, with a large increase in spending for defence and his flagship food and nutrition programmes. https://www.reuters.com/world/asia-pacific/indonesias-central-bank-surprises-with-rate-cut-raises-gdp-outlook-2025-08-20/
2025-08-20 08:45
LONDON, Aug 20 (Reuters) - British house prices in June were 3.7% higher than a year earlier, up from an annual increase of 2.7% in May, the Office for National Statistics said on Wednesday. House price inflation reached its highest in more than two years at 5.5% in March ahead of the expiry of a tax break on many property purchases. Sign up here. Private-sector rents were 5.9% higher than a year earlier in July, down from 6.7% in June and the smallest annual increase since January 2023. https://www.reuters.com/world/uk/uk-house-prices-rise-37-year-on-year-june-2025-08-20/
2025-08-20 08:01
NEW DELHI, Aug 20 (Reuters) - India's state-run refiners Indian Oil (IOC.NS) , opens new tab and Bharat Petroleum (BPCL.NS) , opens new tab have bought Russian oil for September and October delivery, resuming purchases after discounts widened, two company officials aware of the matter said on Wednesday. The resumption in Russian oil imports by Indian state refiners could reduce supplies for top buyer China which had stepped up purchases during their absence. Sign up here. The refiners halted purchases in July due to narrower discounts and after India was criticised by Washington for its purchases of Russian oil. President Donald Trump also threatened an additional 25% levy on Indian goods, effective August 27, to penalize New Delhi for its continued buying of the oil. Discounts for Russian flagship Urals crude have widened to about $3 per barrel, making the oil attractive for Indian refiners, while China has stepped up purchases, the officials said. In addition to Urals, IOC has also bought other Russian crude oil grades including Varandey and Siberian Light, they said. Indian companies do not comment on their crude imports. On Monday, IOC, the country's top refiner, told analysts that it would continue to buy Russian oil depending on economics. In recent weeks, Chinese refineries bought 15 cargoes of Russian oil for October and November delivery, according to two analysts and one trader. https://www.reuters.com/business/energy/indian-oil-bpcl-resume-buying-russian-oil-september-sources-say-2025-08-20/
2025-08-20 07:58
Talks 'going in the right direction', CEO says Rail upgrade key to clean energy mineral logistics Consortium targets 1.5 million tons annual volumes Aug 20 (Reuters) - Lobito Atlantic Railway (LAR) aims to finalise by the end of this year a $533 million loan deal with the U.S. International Development Finance Corporation (DFC) that is vital for the upgrade of its Angolan concession, LAR's CEO told Reuters. The U.S. development lender pledged the loan in 2024 to support the revamp of 1,300 kilometres (800 miles) of railways and provide a quick route to haul minerals that are critical to the global shift to cleaner energy. Sign up here. Angola in 2022 handed LAR, a consortium of Trafigura, Mota-Engil and Vecturis SA, a 30-year concession to operate the rail link and provide a quick route for copper and cobalt exports from the Democratic Republic of Congo through the Lobito port on the Atlantic coast. The company's newly appointed CEO Nicholas Fournier said the U.S funding was close to being concluded, despite concerns triggered by President Donald Trump's reversal of Biden-era climate and energy policies. "There will be no change. I know lots of people try to put this as a geopolitical thing, but it's really a commercial transaction we are doing," Fournier told Reuters in an interview. "There is an army of lawyers on both sides discussing the last comma and everything, so it's going in the direction. We're hoping to have this completed before the end of the year," he added. Fournier said LAR expected volumes on the Lobito line to double following ongoing upgrade work funded by the consortium partners, which have committed $555 million in investment. "We want in 2026 to double, doing 40,000 tons a month, one way and 40,000 tons the other way. And then continuing to be able to do 1.5 million tons a year during this decade," he said. LAR's cargo trains move mainly copper and cobalt to the Lobito port for export markets. They also haul sulphur mostly to DRC mines as well as agricultural commodities and industrial products from the port. https://www.reuters.com/world/africa/trafigura-led-consortium-aims-finalise-us-loan-deal-by-end-2025-2025-08-20/
