2025-08-15 06:27
Intel shares rise on report of potential US government investment Discussions follow tensions over CEO’s China-linked investments Intel faces AI chip competition and factory expansion challenges Aug 14 (Reuters) - The Trump administration is in talks with Intel (INTC.O) , opens new tab to have the U.S. government potentially take a stake in the struggling chipmaker, Bloomberg News reported on Thursday, citing people familiar with the plan. Such a move would mark another intervention by U.S. President Donald Trump in industries seen as vital to national security. Trump has pushed for multibillion-dollar government tie-ups in semiconductors and rare earths - for instance, a pay-for-play deal with Nvidia (NVDA.O) , opens new tab and an arrangement with rare-earth producer MP Materials to secure critical minerals. Sign up here. Intel declined to comment on the report but said it was deeply committed to supporting Trump's efforts to strengthen U.S. technology and manufacturing leadership. White House spokesman Kush Desai said: "Discussion about hypothetical deals should be regarded as speculation unless officially announced by the administration." Intel's shares surged over 7% in regular trading and then another 2.6% after the bell. The discussions follow a meeting this week between Trump and Intel CEO Lip-Bu Tan. That meeting came days after Trump publicly demanded that Tan resign over his investments in Chinese tech companies, some linked to the Chinese military. Details of the stake and price are still being discussed, Bloomberg said. Ryuta Makino, an analyst at Intel investor Gabelli Funds, said it was likely that the U.S. government would take a stake in Intel because Trump wants the chipmaker to expand domestic manufacturing and to create more jobs. Intel warned last month that it may have to get out of the chip manufacturing business if it does not land external customers to make chips in its factories. It planned to slow construction work on new factories in Ohio. Tan, who took the top job just over six months back, has been tasked to undo years of missteps that left Intel struggling to make inroads in the booming AI chip industry dominated by Nvidia, while investment-heavy contract manufacturing ambitions led to heavy losses. "I think any deal that involves the U.S., as well as third-party investors (PE) likely has to come with tariffs that strongly encourage customers like Nvidia, AMD (AMD.O) , opens new tab, Apple (AAPL.O) , opens new tab to use Intel Foundry," said Ben Bajarin, CEO of market analysis firm Creative Strategies. It is not unusual for the U.S. government to take a stake in a company, but those have usually needed financial help. Though Intel's stock market value has tumbled in recent years and it has lost its industry leadership, its revenue remains stable at over $50 billion a year, and it was not clear to some investors that the chipmaker needs such direct government assistance. https://www.reuters.com/world/china/trump-weighs-taking-stake-intel-bloomberg-news-reports-2025-08-14/
2025-08-15 06:23
HELSINKI, Aug 15 (Reuters) - Finnish utility Fortum (FORTUM.HE) , opens new tab on Friday posted second quarter earnings below estimates and said its results were affected by lower electricity market prices and generation volumes compared to a year earlier. "Power prices were under pressure both from abundant hydro reservoirs at the beginning of the quarter and from increased wind production," CEO Markus Rauramo said in a statement. Sign up here. Fortum said its April-June comparable operating profit fell to 115 million euros ($134.21 million) from 233 million a year ago, missing a mean estimate of 133 million in a poll provided by the company. "Uncertainty in the operating environment has remained strong due to ongoing geopolitical conflicts and U.S. tariff plans and may pose challenges to major industrial investments in the Nordics," Rauramo said. ($1 = 0.8569 euros) https://www.reuters.com/business/energy/finnish-utility-fortums-second-quarter-profit-lags-forecast-2025-08-15/
2025-08-15 06:17
India dealers offer up to $6/oz discounts this week Indian Jewellers place healthy orders ahead of festival season Physical gold demand in China appears limited - trader Aug 15 (Reuters) - Physical gold demand in India improved slightly this week as a price pullback lifted buying interest among consumers, while activity in other top Asian hubs remained lacklustre. Gold prices in India closed at 99,838 rupees ($1,139.61) per 10 grams on Thursday after hitting a record high of 102,250 rupees last week. Sign up here. "Many retail consumers are waiting for a price correction, but with prices steady around 100,000 rupees for the past few months, some buyers have begun purchasing," said a Mumbai-based jeweller. Indian dealers offered discounts of up to $6 per ounce to official domestic prices, inclusive of 6% import and 3% sales levies, compared with an up to $9 discount to a premium of $2 last week. Jewellers placed healthy orders with manufacturers at the India International Jewellery Show for the upcoming festival season despite elevated prices, said a Mumbai-based bullion dealer with a private bank. Indians will celebrate the Dussehra and Diwali festivals in October, when buying gold is considered auspicious. In top consumer China, bullion changed hands anywhere between discounts of $7 to a $6 premium an ounce over the global benchmark spot price . "Physical gold demand in Asia remains mixed. The jewellery sector continues to struggle under the weight of high prices... with no new import quotas announced, actual physical demand from Chinese traders appears to be more limited," said Bernard Sin, regional director of Greater China at MKS PAMP. "Tariff news sparked and reversed. No major gold relocations or withdrawals were seen." U.S. President Donald Trump said on Monday he would not impose tariffs on gold, ending days of speculation that the metal could be caught up in the ongoing global trade spat. In Hong Kong, gold was sold at par to a premium of $1.60, while in Singapore , gold traded between at-par prices and a $2 premium. In Japan, bullion was sold at a discount of $0.50 over spot prices, according to a Tokyo-based trader. ($1 = 87.6070 Indian rupees) https://www.reuters.com/world/china/asia-gold-price-retreat-buoys-demand-india-activity-muted-elsewhere-2025-08-15/
2025-08-15 06:16
LITTLETON, Colorado, Aug 15 (Reuters) - The planned talks between U.S. President Donald Trump and Russian President Vladimir Putin mark the potential beginnings of a return of Russia - and its commodities - to the global arena following Moscow's recent international isolation. Prior to its invasion of Ukraine in 2022, Russia was a leading exporter of crude oil, natural gas, coal, aluminium, nickel, steel, wheat and fertilizers - among other commodities - and the top supplier of energy products to Europe. Sign up here. Since 2022, the sanctions imposed on Moscow by Western nations have sparked a major disruption to those commodity flows, with Russia's pipelined gas exports falling by half and its oil shipments undergoing lengthy diversions to new markets. Below is a breakdown of where Russia ranks in terms of global production and exports of some of the world's most widely-traded commodities to provide a guide on potential market impacts should global relations with Russia return to normal. GAS CRUNCH Natural gas has arguably been the most impacted commodity from the fallout of Russia's invasion of Ukraine. Russia is the world's second-largest gas producer and exporter, but endured heavy cuts to outbound shipments once Moscow was slapped with sanctions by Europe and the United States in 2022. Many European nations - including key economy Germany - had previously secured a majority of their gas supplies from Russia, but rapidly pared imports via pipeline as part of efforts to punish Moscow for starting a war in the region. Russia's exported gas volumes via pipeline dropped by 38% in 2022 from the previous year, and again by 30% in 2023 from 2022's total as European buyers switched to imported LNG and other fuels to replace those lost gas supplies. In 2024, Russia's pipeline exports totalled 108.2 billion cubic metres, or 46% less than the 201.3 billion cubic metres exported in 2021, data from the Energy Institute shows. To try to offset some of the lost revenue from pipelined gas, Russia boosted exports of liquefied natural gas. Russian LNG export volumes have climbed by around 12% since 2021 and hit an all-time high in 2024 of 44.3 billion cubic metres. Given the lack of pipeline links to other regions, the slump in exports to Europe led to a surge in Russian gas inventories since 2022, which in turn sparked greater gas use by power firms and industry and ongoing efforts to boost LNG export capacity. Russian natural gas production dropped to eight-year lows in 2023 as the industry curbed output in response to the export market collapse. It has since lifted production again to around 630 billion cubic metres in 2024. CRUDE DIVERSIONS The crude oil market was also heavily impacted by the sanctions slapped on Moscow, as Russia is the world's third-largest crude oil producer and exporter. Similar to the gas market, Russian output and exports of crude oil have both taken a hit since 2022, although exports have declined by more than production as domestic stockpiles have been replenished. In 2024, Russian crude oil output was estimated at 10.75 million barrels a day, down 4% from output of 11.2 million bpd in 2022, Energy Institute data shows. Russian oil exports in 2024 totalled just over 7 million bpd, which is down 8% from the 7.6 million bpd exported in 2022. In addition to undergoing steep declines, Russian crude oil exports also underwent significant changes in destinations, as traders were forced to find alternate homes for their barrels. And similar to the gas market, exporters needed to replace Europe - which had previously been the top destination for Russian oil - with other markets. Fortunately for Russian oil traders, India has proved willing to endure pushback from the international community and rapidly expanded its Russian oil purchases just as Europe cut back. Indeed, between 2022 and 2024 India's imports of Russian crude oil more than doubled, from 321 million barrels in 2022 to 651 million barrels in 2024, data from commodities intelligence firm Kpler shows. Europe's imports of Russian crude dropped by 30% over that same period from 821 million barrels in 2022 to 581 million barrels in 2024, which allowed India to emerge as the top market for Russian crude last year. China is the second-largest Russian crude oil buyer, and bought 460 million barrels in 2024, up 17% from 2022's total. COAL, METALS & MORE Coal markets have also been impacted in the aftermath of the Russia-Ukraine war, as Russia is the sixth-largest coal producer and third-largest coal exporter. Because of a large domestic coal-fired power plant fleet, Russian coal mine production has been able to remain largely steady since 2022 as local power firms consumed additional supplies that had previously been sent for export. In 2024, Russia's coal production was around 2.3% down from 2022's total, while exports were down nearly 10%. Stiff competition from Indonesia and other coal producers has served to squeeze Russian coal from several international markets, while diminished import demand from China and India - the top two coal consumers - has also hit coal exports. Russia is also a leading producer and exporter of several key metals, including aluminium, nickel, cobalt and palladium, which are all in high demand for a number of industrial and technological applications. Russia is also a key producer of fertilizers, industrial gases, diamonds and crops such as wheat and barley, and so any rapid resumption in trade ties between Moscow and the international community stands to have far-reaching repercussions. That said, any fresh deterioration in relations with Moscow following the upcoming talks could serve to keep Russia's copious commodities out of reach for many buyers, which would tighten global markets as a result. The opinions expressed here are those of the author, a columnist for Reuters. Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI can help you keep up. Follow ROI on LinkedIn , opens new tab and X , opens new tab. https://www.reuters.com/markets/commodities/refresher-russias-commodities-clout-ahead-trump-talks-2025-08-15/
2025-08-15 05:58
Hot US PPI print wipes out wagers on 50 bps Fed cut Strong GDP data, BOJ hike expectations boost yen Dollar on course to end week flat against EUR; lower against JPY, GBP Markets await outcome of Trump-Putin summit Singapore, Aug 15 (Reuters) - The dollar was largely steady against the euro and British pound on Friday as traders trimmed wagers on monetary policy easing by the U.S. Federal Reserve following hotter-than-expected wholesale inflation data. The Japanese yen, meanwhile, firmed broadly following surprising strong economic growth data as export volumes held up well against new U.S. tariffs. Sign up here. The yen was up 0.4% against the dollar at 147.125 and rose 0.3% versus both the euro and British pound as well. U.S. Treasury Secretary Scott Bessent's remarks that the Bank of Japan could be "behind the curve" in dealing with the risk of inflation proved to be another tailwind for the yen this week. The yen has gained nearly 0.5% versus a softer U.S. dollar on the week. The remarks, combined with the upside surprise on GDP, imply that expectations of a BOJ rate hike are likely to solidify and the yen could strengthen further, analysts at DBS said in a note. Overnight, markets had to contend with data showing U.S. producer prices rose the most in three years in July amid a surge in the costs of goods and services, pointing to a broad pick up in inflationary pressures which analysts say could pose a dilemma for the Fed. Bets on a 25-basis-point cut by the U.S. central bank in September remain very high but retreated slightly after the producer price figures, according to CME's FedWatch tool. A combination of supportive data and remarks from the U.S. treasury secretary had given rise to the possibility of an outsized 50-basis-point rate cut in September, but those expectations were wiped out entirely after Thursday's data. The Fed will likely cut rates in September as "not only is it being encouraged by the Trump administration but is also being priced by the markets," said Ben Benett, APAC investment strategist at Legal and General Investment Management. But analysts also reckon that signs of weakness in the U.S. labour market combined with inflation pointing to the impact of trade tariffs could present a dilemma for the Fed's rate cut trajectory. Remarks from Fed Chair Jerome Powell are likely to be in focus next week to gauge his assessment of U.S. economic conditions and the future path of benchmark interest rates. Against the dollar, the euro and sterling were little changed after falling 0.5% and 0.3%, respectively, in the previous session ahead of the U.S. retail sales data. A key factor to watch for the greenback would be how the bond market digests increased amounts of government debt issuance in September and October, said Alex Hill, managing director at Electus Financial Ltd in Auckland The Australian dollar was nearly flat versus the U.S. dollar while the Chinese yuan pulled back from a two-week high as weaker-than-expected economic readings weighed on sentiment. Investors are also awaiting a summit between U.S. President Donald Trump and Russian leader Vladimir Putin later on Friday in Alaska. Trump said on Thursday that he believes Putin is ready to end his war in Ukraine, but peace would likely require at least a second meeting involving Ukraine's leader. The meeting "feels like a step in the process instead of a fireworks moment," Legal and General Investment Management's Benett said, pointing to muted market expectations from the summit. Elsewhere, Bitcoin and ether rose after dropping about 4% each on Thursday. Bitcoin had at one point touched a record high on Thursday on shifting Fed rate-cut expectations. https://www.reuters.com/world/middle-east/strong-japan-gdp-lifts-yen-dollar-steady-rate-cut-fervour-cools-slightly-2025-08-15/
2025-08-15 05:55
GENEVA, Aug 15 (Reuters) - No consensus was reached during talks in Geneva on the world's first legally binding treaty to tackle plastic pollution, according to delegates on Friday. "South Africa is disappointed that it was not possible for this session to agree a legally binding treaty and positions remain far apart," its delegate told a closing meeting of the negotiations early on Friday. Sign up here. More than 1,000 delegates have gathered in Geneva for the sixth round of talks, after a meeting of the Intergovernmental Negotiating Committee (INC) in South Korea late last year ended without a deal. The INC is a group established by the United Nations Environment Assembly (UNEA) in 2022 with the mandate to develop a legally binding global treaty to address plastic pollution. Negotiations had gone into overtime on Thursday as countries scrambled to bridge deep divisions over the extent of future curbs. Diplomats and climate advocates had warned earlier this month that efforts by the EU and small island states to cap virgin plastic production - fuelled by petroleum, coal and gas - are threatened by opposition from petrochemical-producing countries and the U.S. under President Donald Trump. The most divisive issues include capping production, managing plastic products and chemicals of concern, and financing to help developing countries implement the treaty. https://www.reuters.com/sustainability/climate-energy/no-consensus-binding-plastic-treaty-talks-geneva-delegates-say-2025-08-15/
