2025-08-12 20:37
WASHINGTON, Aug 12 (Reuters) - U.S. trade officials will meet again with their Chinese counterparts within the next two or three months to discuss the future of the economic relationship between the two countries, Treasury Secretary Scott Bessent said on Tuesday, a day after the Trump administration extended a pause on sharply higher U.S. tariffs on Chinese imports for another 90 days. In an interview on Fox Business Network's "Kudlow," Bessent said the U.S. will need to see "months, if not quarters, if not a year" of progress on fentanyl flows before it considers reducing tariffs on China. Sign up here. https://www.reuters.com/world/china/us-trade-team-will-meet-chinese-officials-next-2-3-months-bessent-says-2025-08-12/
2025-08-12 20:31
Aug 12 (Reuters) - CoreWeave (CRWV.O) , opens new tab topped Wall Street estimates for second-quarter revenue on Tuesday, driven by accelerating demand for the Nvidia-backed (NVDA.O) , opens new tab AI cloud computing firm's services. The company offers access to data centers and Nvidia chips, which are highly coveted for by enterprises to train and run large AI models amid intense competition. Sign up here. CoreWeave, which currently has 33 AI data centers up and running across the U.S. and Europe, focuses solely on GPU-based operations. The company's operating expenses jumped to $1.19 billion in the quarter, compared to $317.7 million a year. Livingston, New Jersey-based CoreWeave's shares fell 6% in trading after the bell. The stock has gained nearly three-fold since its March IPO. Revenue backlog was $30.1 billion as of June 30, the company said. CoreWeave reported revenue of $1.21 billion for the second quarter, compared with analysts' average estimate of $1.08 billion, according to data compiled by LSEG. https://www.reuters.com/business/coreweave-beats-quarterly-revenue-estimates-sturdy-ai-demand-2025-08-12/
2025-08-12 20:29
Indexes up; Dow 1.1%, S&P 500 1.13%, Nasdaq 1.39% US core inflation jumps by 3.1% in July Bank shares rally on rate cut hopes Alphabet up after Perplexity offers $34.5 billion for Chrome browser NEW YORK, Aug 12 (Reuters) - The S&P 500 and the Nasdaq scored record closing highs on Tuesday, as news that July inflation rose broadly in line with expectations bolstered bets on a Federal Reserve interest rate cut next month. The Labor Department said the Consumer Price Index (CPI) rose 0.2% on a monthly basis in July, while annual inflation came in slightly below forecasts, drawing calls from U.S. President Donald Trump to lower interest rates. Sign up here. Yields on shorter-dated Treasury bonds - a reflection of interest rate expectations - slipped and rate futures showed traders are giving an 88.8% chance that the Fed could lower rates by about 25 basis points in September. "The CPI data is supportive for equities overall, getting some good news with the Fed looking more on track to cut in September and potentially more transitory inflation," said Katherine Bordlemay, co-head of client portfolio management, fundamental equities at Goldman Sachs Asset Management. "The first thing I'd guide is continue to lean into the theme of the big are getting bigger. We continue to have conviction around mega-tech and technology." Alphabet (GOOGL.O) , opens new tab shares rose 1.2% as Perplexity made a $34.5 billion cash offer to buy the company's Chrome browser. Intel Corp (INTC.O) , opens new tab climbed 5.6% after Trump said he met its CEO, Lip-Bu Tan, on Monday, praising Tan and calling the meeting "very interesting." Last week, Trump demanded Tan's immediate resignation, calling him "highly conflicted" over his ties to Chinese firms. The Dow Jones Industrial Average (.DJI) , opens new tab rose 483.52 points, or 1.10%, to 44,458.61, the S&P 500 (.SPX) , opens new tab gained 72.31 points, or 1.13%, at 6,445.76 and the Nasdaq Composite (.IXIC) , opens new tab advanced 296.50 points, or 1.39%, to 21,681.90. The quality of economic data remains a concern weeks after Trump fired the head of the Bureau of Labor Statistics following downward revisions to previous months' nonfarm payrolls counts. Markets are monitoring developments around Trump's nominee, E.J. Antoni, to the bureau commissioner post and potential candidates for the Fed's top job. "This is still early innings of this process and just as the Fed will be beginning to cut rates in the autumn, that's when the inflation data will probably start to be registering some of these more direct tariff price increases and it's going to complicate the rate-cutting decision," said John Velis, a macro strategist at BNY. Relief came as the U.S. and China extended their tariff truce until November 10, staving off triple-digit duties on each other's goods. U.S. stocks have rallied in recent weeks on the back of strong tech earnings, easing trade tensions, and increased rate cut expectations. Inflows into U.S. stocks last week were the largest in two years, BofA Global Research data showed. The Russell 2000 index (.RUT) , opens new tab, tracking small-cap companies, advanced almost 3%. An index tracking airline stocks (.SPLRCALI) , opens new tab surged 8.87%, its biggest one-day rise in over a month after data showed airfares rose 4% in July. Bank stocks rallied, with the S&P 500 Banks index (.SPXBK) , opens new tab up 2.1%, as analysts said a steepening yield curve could help bank earnings as lenders could borrow cheap and lend at a higher rate. Cardinal Health (CAH.N) , opens new tab dropped 7% after the drug distributor said it will buy healthcare management firm Solaris for $1.9 billion. Advancing issues outnumbered decliners by a 4.26-to-1 ratio on the NYSE. There were 484 new highs and 60 new lows on the NYSE. On the Nasdaq, advancing issues outnumbered decliners by a 2.69-to-1 ratio. The S&P 500 posted 27 new 52-week highs and 12 new lows while the Nasdaq Composite recorded 104 new highs and 96 new lows. Volume on U.S. exchanges was 16.40 billion shares, compared with the 18.3 billion average for the full session over the last 20 trading days. https://www.reuters.com/business/sp-500-nasdaq-end-record-closing-highs-moderate-inflation-lifts-rate-hopes-2025-08-12/
2025-08-12 20:29
TSX ends up 0.5% at 27,921.26 Edges above last Wednesday's record closing high Nine of 10 major sectors notch gains Financials add 0.7%, materials end 0.9% higher Aug 12 (Reuters) - Canada's main stock index posted on Tuesday a new record high, with financial shares participating in broad-based gains as U.S. inflation data reinforced expectations that the Federal Reserve would cut interest rates in September. The S&P/TSX composite index (.GSPTSE) , opens new tab ended up 146.03 points, or 0.5%, at 27,921.26, edging past the record closing high it posted last Wednesday. Sign up here. U.S. consumer prices increased marginally in July, though rising costs for services such as airline fares and some tariff-sensitive goods like household furniture caused a measure of underlying inflation to post its largest gain in six months. "Inflation is on the rise, but it didn't increase as much as some people feared," said Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management. "In the short term, markets will likely embrace these numbers because they should allow the Fed to focus on labor-market weakness and keep a September rate cut on the table." Canada sends about 75% of its exports to the United States, much of which are exempt from U.S. tariffs under a continental trade pact, so its economy could benefit if the Fed moves to stimulate growth. The heavily weighted financials sector (.SPTTFS) , opens new tab rose 0.7%, with shares of Brookfield Corp (BN.TO) , opens new tab up 1.9%. Real estate was up 1.1%, while the materials group (.GSPTTMT) , opens new tab, which includes metal mining shares, added 0.9% as gold and copper prices moved higher. Altus Group AIF.TO , opens new tab is exploring a potential sale after receiving inbound acquisition interest, two people familiar with the matter said. Shares of the software and data analytics provider focused on the real estate industry jumped 9.5%xxx. Nine of 10 major sectors ended higher. The exception was utilities, which lost 0.1%. Gildan Activewear Inc (GIL.TO) , opens new tab shares fell 3.7% after a report that the apparel manufacturer is nearing a deal to acquire Hanesbrands (HBI.N) , opens new tab. https://www.reuters.com/world/china/tsx-rises-record-high-as-us-inflation-data-supports-fed-rate-cut-bets-2025-08-12/
2025-08-12 20:20
WASHINGTON, Aug 12 (Reuters) - The U.S. Department of Energy said on Tuesday it has made an initial selection of 11 companies for a pilot program seeking to develop high-tech test nuclear reactors and get at least three of them to begin operating in less than a year. WHY IT'S IMPORTANT As artificial intelligence and data centers boost power demand, the U.S. is aiming to develop small nuclear reactors which developers say will be cheaper to build per Megawatt of output than today's large reactors because the parts could be replicated in factories. Sign up here. The department's move comes after President Donald Trump issued executive orders in May seeking to speed permitting of nuclear reactors and reform the Nuclear Regulatory Commission, an independent agency. The orders allow the Energy Department to authorize the test reactors, without the NRC. KEY QUOTE “President Trump’s Reactor Pilot Program is a call to action,” said James Danly, deputy energy secretary. “These companies aim to all safely achieve criticality by Independence Day, and DOE will do everything we can to support their efforts.” COMPANIES SELECTED The department selected the following companies: Aalo Atomics., Antares Nuclear, Atomic Alchemy, Deep Fission Inc., Last Energy., Oklo (OKLO.N) , opens new tab , Natura Resources LLC, Radiant Energy, Terrestrial Energy, and Valar Atomics. The department said each company will be responsible for all costs associated with designing, manufacturing, constructing, and decommissioning their test reactors. HURDLES Small modular and so-called "advanced" nuclear reactors have been talked about in the U.S. for years, but the only ones operating are in China and Russia. Hurdles include getting permits for plants that generate electricity for the grid, developing commercial levels of a new fuel some of the reactors plan to use called high-assay low-enriched uranium, and developing factories for the reactors when none of the plants are yet operating. https://www.reuters.com/business/energy/us-selects-11-firms-program-fast-track-small-nuclear-test-reactors-2025-08-12/
2025-08-12 20:05
US consumer prices increase moderately in July Dollar erases early gains to trade lower against euro, yen Former Fed bank president Bullard says he'd accept Fed chair job if offered Weaker USD helps Aussie rebound after hit from widely expected RBA rate cut Sterling supported by British jobs data NEW YORK, Aug 12 (Reuters) - The dollar fell across the board on Tuesday after data showed that U.S. consumer prices increased moderately in July, leaving intact the case for a Federal Reserve interest-rate cut next month. The consumer price index rose 0.2% last month after gaining 0.3% in June, the Labor Department's Bureau of Labor Statistics said on Tuesday. Sign up here. In the 12 months through July, the CPI advanced 2.7% after rising 2.7% in June. Economists polled by Reuters had forecast the CPI rising 0.2% and increasing 2.8% year-on-year. "Underlying inflation remains subdued, giving policymakers room for maneuver as they respond to signs of incipient weakness in labor markets," Karl Schamotta, chief market strategist at Corpay, said. "Chair Powell should put a September cut on the table when he speaks at Jackson Hole on the 21st," Schamotta said, referring to the Fed's Jackson Hole Economic Symposium later this month. Currency markets had been in a holding pattern earlier as expectation grew that a moderate reading on U.S. price pressures could cement bets for a Fed rate reduction next month, which increased after last week's soft payrolls data. "If the Fed moves ahead with back-to-back cuts, the policy rate differential with peers could narrow quickly, weighing on USD against higher-yielding currencies," Fawad Razaqzada, analyst at Forex.com, said in a note. The euro erased earlier losses against the buck to trade up 0.4% at $1.16663. The greenback fell 0.3% against the Japanese yen to trade at 147.74 yen . GLOBAL GROWTH With the jury still out on the impact of tariffs on global growth, predicting how the dollar will react through the end of the year remained challenging, Schamotta said. "The early-autumn outlook remains incredibly difficult to read, and evidence of a broader global slowdown could easily see the dollar regain its poise," he said. On Tuesday, speculation about a change of leadership at the Fed was back as Former St. Louis Federal Reserve Bank President James Bullard said he would accept the role of Fed Chair if it was offered to him. Bullard told CNBC that he would accept the job "if we can protect the value of the dollar ... that'll give us lower interest rates over time; if we aim for low and stable inflation, (and) respect the independence of the institution under the Federal Reserve Act". Meanwhile, Sterling was up 0.5% on the dollar at $1.3495 after data that showed Britain's jobs market weakened further, albeit more slowly, while wage growth stayed strong - the latter underscoring why the Bank of England is so cautious about cutting interest rates. The numbers ought not to cause the Bank of England to accelerate the speed of its rate cuts. The BoE cut rates only last week in a tight 5-4 vote. The Australian dollar initially dipped after the Reserve Bank of Australia cut its interest rate by a quarter point, a move that was widely anticipated. The central bank cited a slowdown in inflation and a looser labor market, though it was cautious on prospects for further easing. The greenback's broad weakness, however, helped the Aussie recover ground to trade up 0.3% to $0.653 against the U.S. dollar. Currency markets largely ignored Trump's decision to in sharply higher tariffs on Chinese imports for another 90 days, as widely expected. Cryptocurrency bitcoin was about flat around $119,295, after climbing as high as $122,308.25 on Monday, taking it close to the all-time peak of $123,153.22 from mid-July. https://www.reuters.com/world/middle-east/dollar-slips-us-inflation-data-backs-september-rate-cut-2025-08-12/
