2025-08-14 11:08
Sales expected to fall by 5% to 7% Third quarter saw "enormous" uncertainty, CEO says Shares down 8.8% FRANKFURT/DUSSELDORF, Aug 14 (Reuters) - German conglomerate Thyssenkrupp cut its full-year sales and investment forecasts on Thursday, blaming weak demand for its products as U.S. President Donald Trump's import tariffsdisrupt global trade in autos, machines and building materials. Weakness among automotive clients, who account for around a third of Thyssenkrupp's customer base and are being hit by U.S. import levies, was a major factor in the decision, as well as lower than expected third-quarter profits, the group said. Sign up here. "Trade disputes had a significant impact on our quarter and also left some skid marks in macroeconomic terms," Chief Financial Officer Axel Hamann said. "Many companies, especially customers, are waiting to see what happens or are taking a cautious approach," he told journalists. The company, with a broad portfolio that includes steelmaking and submarine production, now expects sales to fall by 5% to 7% during its fiscal year to September 30. It previously expected sales to drop by up to 3%. Investment plans were cut to between 1.4 billion and 1.6 billion euros ($1.6-$1.9 billion), from 1.6-1.8 billion euros. Thyssenkrupp said the introduction of tariffs had curbed international trade and hit global supply chains, and that things could get worse should the Israeli-Palestinian conflict in the Middle East escalate further. "The past quarter was characterised by enormous macroeconomic uncertainty," CEO Miguel Lopez said. Shares in the company, which is in the process of spinning off its submarine division TKMS in October, were 8.8% lower at 1045 GMT. Full-year adjusted earnings before interest and tax are now forecast to be at the lower end of the 0.6 billion to 1 billion euros guidance range, the company said. In its fiscal third quarter from April to June, adjusted EBIT rose 4% to 155 million euros, missing the 174 million average estimate in an analyst poll provided by the group. ($1 = 0.8544 euros) https://www.reuters.com/markets/europe/hit-by-trump-tariffs-thyssenkrupp-cuts-sales-investment-forecasts-2025-08-14/
2025-08-14 11:00
LONDON, Aug 14 (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. Spurred on by the U.S. President and Treasury Secretary, expectations for interest rate cuts are reaching a fever pitch, with markets now starting to price in a small chance of a half point cut as soon as next month as they await today's producer price report. On Wednesday, Scott Bessent said downward revisions to the U.S. payrolls meant the Federal Reserve needed to play catch-up. He said there was a "very good chance" of a 50 basis point reduction in September and that rates should "probably" be 150-175 bps lower. * Wall Street zoomed to new records on Wednesday, but stock futures stepped back a touch ahead of the PPI report but two-year Treasury yields continued to stalk three-month lows. Even though many Fed officials are still cautious about the prospects for a half point cut, Wall Street banks are starting to forecast as many as three cuts this year, arguing softer jobs growth, a lack of "pass-through" from tariffs to consumer prices, and a new appointee to the Fed board will tip the balance. * Thursday's producer price update for July will be important as details feed into the Fed's favored PCE inflation gauge. Annual headline and core PPI inflation are expected to pick up to 2.5% and 2.7%, respectively. Meantime, President Donald Trump said his pick for the next Fed Chair would be named "a little bit earlier" and he'd narrowed it down three or four names, despite indications earlier on Wednesday that as many as a dozen names had been considered. * Elsewhere, the inflation picture softened further given this week's slide in crude oil prices to two-month lows ahead of the critical U.S.-Russia summit in Alaska tomorrow. Japan's yen jumped to three-week highs, knocking the Nikkei stock index back sharply from record highs, as Bessent also said the Bank of Japan was "behind the curve" in tackling inflation there. Sterling hit six-week highs on the euro after the release of above forecast UK GDP data. Finally, riffing off the week's heady surge in risk appetite and rate cut bets, Bitcoin jumped to a new record high at $124,481. Make sure to check out today's column, where I discuss why political pressure on government statisticians and private forecasters risks sending markets down a rabbit-hole. Today's Market Minute * U.S. President Donald Trump threatened "severe consequences" if Russia's Vladimir Putin does not agree to peace in Ukraine but also said on Wednesday that a meeting between them could swiftly be followed by a second that would include the leader of Ukraine. * The announcement of the results of a U.S. probe into pharmaceutical imports and new sector-specific U.S. tariffs likely remains weeks away, four official and industry sources said, later than initially promised. * Investors are increasingly pricing in a "higher for longer" interest rate environment in the euro zone, with a potential cut in March seen as a temporary blip before borrowing rates climb back above 2%. * OPEC+ is widely believed to be pivoting from trying to bolster prices to rebuilding market share, but a recent decision by Saudi Arabia seems to be at odds with this strategy. Read the latest from ROI columnist Clyde Russell. * It's widely believed that U.S. President Donald Trump's insistence on lower interest rates is what's making life most difficult for Federal Reserve Chair Jerome Powell and his colleagues. But ROI columnist Jamie McGeever argues that what's causing the biggest headache for Fed officials is probably more prosaic: economic data. Chart of the day As Trump prepares to meet Russian President Vladimir Putin on Friday on prospects for ending the Ukraine war, the legacy of the conflict on the global economy is assessed. The added inflation fallout from 2022's invasion and energy price spike has dissipated largely but the United States emerges from the period with the highest inflation rate of the Group of Seven major economies. Today's events to watch * U.S. July producer price report (8:30 AM EDT) weekly jobless claims (8:30 AM EDT) * Richmond Federal Reserve President Thomas Barkin speaks * U.S. corporate earnings: Applied Materials, Tapestry, Amcor, Deere 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-corrected-2025-08-14/
2025-08-14 10:57
NEW DELHI, Aug 14 (Reuters) - Indian state refiners have started making enquiries with trading firms about purchases of Russia's Urals crude oil as discounts widen, three people with knowledge of the matter said on Thursday, ahead of a high-profile meeting of U.S. and Russian leaders on Friday. Indian state refiners - Indian Oil Corp (IOC.NS) , opens new tab, Hindustan Petroleum Corp (HPCL.NS) , opens new tab, Bharat Petroleum Corp (BPCL.NS) , opens new tab and Mangalore Refinery Petrochemical Ltd (MRPL.NS) , opens new tab - paused Russian oil purchases last month as discounts narrowed. Sign up here. The state refiners, which account for more than 60% of India's 5.2 million barrels per day of refining capacity, buy Russian oil on a delivered basis. Spot discounts for Russian Urals crude delivered to India in October have widened to about $2.70 per barrel from $1-$1.50 per barrel in late July, the sources said. The wider discount makes delivery of Urals cheaper than it was in July. India became the largest customer of Russian seaborne oil from 2022, after Western countries shunned Russian oil and imposed sanctions on Moscow for its invasion of Ukraine. U.S. President Donald Trump last month threatened sanctions on buyers of Russian exports unless Russia agrees to a peace deal with Ukraine. Trump and Russian President Vladimir Putin will discuss a possible deal to end the war in Ukraine when they meet on Friday in Alaska. "We will wait for the outcome of Trump-Putin talks that will give us some indications," one of the sources said. State-run Bharat Petroleum Corp (BPCL.NS) , opens new tab aims to continue using Russian oil to meet up to 35% of its processing needs if there are no new sanctions, Vetsa Ramakrishna Gupta, its finance head, told an analyst call on Thursday. BPCL's Russian oil purchases slowed in July as discounts narrowed, he added. Indian state refiners have turned to spot purchases from countries including Brazil, West Africa, and the United States to replace lower Russian oil supplies. Russian Urals crude is priced at a discount to Brent crude oil, a widely used oil pricing benchmark. Russian oil accounts for more than a third of India's overall purchases. Unlike state refiners, private companies, including Reliance Industries (RELI.NS) , opens new tab and Nayara Energy, have term contracts to buy Russian oil. https://www.reuters.com/business/energy/indian-state-refiners-eye-russian-oil-discounts-widen-sources-say-2025-08-14/
2025-08-14 10:55
FTSE 100 flat, FTSE 250 down 0.1% UK economy slows less than expected Diploma falls after finance chief steps down Aug 14 (Reuters) - Britain's FTSE 100 was nearly flat on Thursday as advances in defence stocks offset declines in energy and mining shares, while investors assessed the country's latest GDP figures. As of 1018 GMT, the blue-chip index (.FTSE) , opens new tab was down 0.06%, after three consecutive sessions of gains, while the domestically focused midcap (.FTMC) , opens new tab index also declined 0.1% Sign up here. Investors parsed Wednesday's British GDP data for the second quarter, which showed the economy slowed less than expected despite U.S. trade tariffs and a weaker jobs market. Much of the slowdown is due to manufacturers frontloading goods in the previous quarter to avoid tariffs, said George Brown, senior economist at Schroders. "This drag should ease in the third quarter, even against a tougher global trade backdrop," he said. "We expect the Bank of England to keep rates on hold for the remainder of the year." The energy sector (.FTNMX601010) , opens new tab was the main drag on the FTSE 100, down 1.3% Harbour Energy (HBR.L) , opens new tab led the losses, falling 4.5%, while oil majors Shell (SHEL.L) , opens new tab and BP (BP.L) , opens new tab each fell over 1%. Industrial metal miners (.FTNMX551020) , opens new tab also retreated 1% amid weakness in copper and iron ore prices. The aerospace and defence (.FTNMX502010) , opens new tab index led the gains, up 2.2%. Among individual stocks, British Gas owner Centrica (CNA.L) , opens new tab rose 2.5% after announcing it will jointly buy National Grid's (NG.L) , opens new tab Grain LNG terminal with U.S.-based Energy Capital Partners for about 1.5 billion pounds ($2.04 billion). Insurer Aviva (AV.L) , opens new tab jumped 3.5% to a 17-year high after raising its interim dividend and reporting a 22% rise in half-year operating profit, boosting the life-insurer's index (.FTNMX303010) , opens new tab 1.6%. The non-life insurers index (.FTNMX303020) , opens new tab also advanced 1.3%, with Admiral Group (ADML.L) , opens new tab rising 4.8% after reporting a 67% jump in half-year pretax profit. Technical products distributor Diploma (DPLM.L) , opens new tab fell 3.4% after finance chief Chris Davies stepped down over personal conduct issues. ($1 = 0.7365 pounds) https://www.reuters.com/world/uk/ftse-100-pauses-after-three-day-rally-gdp-data-focus-2025-08-14/
2025-08-14 10:36
Norway's policy rate on hold, as expected Central bank eyes cut later this year Says job of fighting inflation not fully completed Currency strengthens slightly after announcement ARENDAL, Norway, Aug 14 (Reuters) - Norway's central bank kept its policy interest rate on hold at 4.25% on Thursday, as unanimously predicted by analysts in a Reuters poll, and reiterated plans to cut borrowing costs later this year. Norges Bank, in a surprise decision, cut its key interest rate in June by 25 basis points to 4.25%, the first reduction in more than five years, and said there were more cuts to come due to a more benign inflation outlook. Sign up here. "If the economy evolves broadly according as envisaged, we will lower the policy rate further in the course of the year," Governor Ida Wolden Bache told Reuters. "We have not now made a decision about what to do in September (the next rate meeting). That will depend on the data coming in." She underlined that it was difficult to interpret current data and there remained significant uncertainty about how U.S. tariffs would impact inflation. "There is still uncertainty about the trade regime globally, and not least about the effects of those tariff increases that we have seen," Bache said in an interview. "What we've seen so far is that growth among our main trading partners has, if anything, been higher than anticipated. But the numbers are difficult to interpret at the moment, and it remains to be seen how large those effects will be." The monetary policy committee in June predicted it would make one or two quarter-point rate cuts in the second half of the year. "The information we have received so far indicates that the outlook for the Norwegian economy has remained broadly in line with the outlook in June," Bache told a press conference earlier. All 26 analysts in an August 8-11 poll expected rates to stay on hold this week and were unanimous in predicting a cut in September to 4.00%, and most also anticipated a cut in December to end 2025 on 3.75%. "This is what we, and others expected... We believe the next rate cut will come as soon as September," said Oeystein Doerum, chief economist for the Norwegian Confederation of Enterprises. The Norwegian crown currency initially strengthened against the euro following the 0800 GMT announcement, but later gave up most gains to trade at 11.90 per euro at 1012 GMT. Before the June cut, the Norwegian policy stance had long contrasted with other Western central banks, most of which started cutting rates last year as growth slowed and inflation eased. While the job of tackling Norwegian inflation has not been fully completed, the central bank does not want to restrict the economy more than needed. "It will likely be appropriate to continue with a cautious normalisation of the policy rate ahead," Bache said. https://www.reuters.com/business/finance/norway-central-bank-keeps-rate-hold-eyes-cut-this-year-2025-08-14/
2025-08-14 10:12
LONDON, Aug 14 (Reuters) - The pound rose to a fresh three-week high against the dollar on Thursday even as the greenback advanced against other major currencies, after UK GDP figures for July showed the economy slowing less than expected in the second quarter. At 0937 GMT, the pound was 0.1% higher at $1.135875, sitting at a three-week high against the dollar . Meanwhile, the dollar rose against the euro and Swiss franc. Sign up here. Against the euro, sterling rose 0.22% to 86.01 pence . Official figures published on Thursday showed Britain's economy slowed less than expected between April and June after a strong start to the year, despite the shock of U.S. import tariffs and a weaker jobs market, offering help to finance minister Rachel Reeves in meeting her budget goals. Francesco Pesole, FX strategist at ING, said while the numbers were generally positive they matter more for gilts and for the government heading into the autumn budget. "The BoE hasn't really looked at GDP numbers closely because they're volatile and backward-looking, and they're really looking much more closely at inflation and jobs." UK labour data on Tuesday showed weakness in hiring but persistent wage growth, a headache for the Bank of England, which is faced with the tricky task of balancing a slowing economy and stubborn inflation. The next batch of inflation figures is due on August 20 after last month's CPI figures for June showing UK inflation rising to 3.6% - its highest since January 2024. "The fact that policymakers are pondering how to respond to the challenging combination of a rather weak real economy and persistent inflation has bolstered the pound," wrote Commerzbank analysts in a note. "...these doubts reinforce the view that the BoE is not leaning towards a dovish stance." Money markets expect the BoE to hold rates steady at 4.25% at its next meeting on September 18 . https://www.reuters.com/world/uk/sterling-ticks-higher-against-dollar-economy-slows-less-than-expected-2025-08-14/
