2025-08-11 11:59
Defendants deny charges, claim lack of Finnish jurisdiction Cable owners face at least 60 million euros in repair costs, prosecutors say Baltic Sea region on high alert for sabotage HELSINKI, Aug 11 (Reuters) - Finland's national prosecutor's office said on Monday it had brought charges against the captain and first and second officers of the Eagle S oil tanker over the cutting of undersea cables in the Gulf of Finland in December. The Georgian and Indian nationals are suspected of aggravated criminal mischief and aggravated interference with communications by dragging the ship's anchor for around 90 km (56 miles) across the seabed, a prosecutors' statement said. Sign up here. The defendants, who are not permitted to leave Finland, have denied committing the offences and consider that Finland also lacks jurisdiction in the case as the incident took place outside Finnish territorial waters, it said. Finnish authorities have said the Cook Islands-registered Eagle S broke the Estlink 2 undersea power cable connecting Finland and Estonia as well as four internet lines. "The owners of the cables have suffered a total of at least 60 million euros ($70 million) in immediate damage in the form of repair costs alone," the prosecutors' office said. The Baltic Sea region has been on high alert for sabotage after a string of outages of power cables, gas pipelines and telecoms, although subsea infrastructure is also subject to technical malfunctions and outages caused by accidents. The Eagle S disruption caused serious risks to energy supply and telecommunications in Finland, although services were secured via alternative connections, the prosecutors' statement said. A lawyer for United Arab Emirates-based Caravella LLC FZ, the owner of the Eagle S, has previously said Helsinki lacked jurisdiction to intervene in the case. The lawyer for the company did not immediately respond to a request for comment on Monday. The prosecutors' office said a local court would set a date for hearing the case and, if necessary, determine whether it falls under Finnish jurisdiction. ($1 = 0.8590 euros) https://www.reuters.com/markets/commodities/finland-charges-eagle-s-tanker-captain-officers-over-cable-cuts-2025-08-11/
2025-08-11 11:58
US dollar steady before key US inflation data Traders expect extension of US-China tariff truce Bitcoin closes in on record high, ether surges LONDON, Aug 11 (Reuters) - The U.S. dollar was consolidating on Monday before Tuesday's deadline for Washington and Beijing to strike a tariff deal and a key U.S. inflation report that could help determine whether the Federal Reserve lowers borrowing costs next month. The dollar index was up less than 0.1% to 98.30 after last week's 0.4% fall. Against the yen, the U.S. currency traded at 147.87 , up 0.1%. Japanese markets were closed on Monday for the Mountain Day holiday. Sign up here. The euro was down less than 0.1% at $1.1636, while sterling was down 0.2% at $1.3435. The dollar softened last week as investors adjusted their expectations for interest rate cuts from the Fed after soft data on U.S. jobs and manufacturing. Fed officials have sounded increasingly uneasy about the labour market, signalling their openness to a rate cut as soon as September. Cooling inflation could cement bets for a cut next month, but if signs emerge that U.S. President Donald Trump's tariffs are fuelling price rises, that might keep the Fed on hold for now. "It's important to note ahead of tomorrow's data that the bar for a hawkish surprise is higher," said Francesco Pesole, FX strategist at ING. Pesole added that a 0.3% monthly rise in core CPI would give the Fed room to lower interest rates, given the deterioration in the labour market. Economists polled by Reuters expect core CPI to have risen 0.3% in July, pushing the annual rate higher to 3%. Money market traders are pricing in around a 90% chance of a rate cut next month, while 58 basis points of easing are priced in by year-end, implying two quarter-point cuts and around a one-in-three chance of a third. Personnel moves at the Fed have also weighed on the dollar recently. Trump is preparing to install rate-setters that support his dovish views on monetary policy, including a new chair for when Jerome Powell's term ends in May. Trade talks were also in focus as Trump's August 12 deadline for a deal between the U.S. and China neared, particularly on chip policy. "The market has fully priced in the idea that we're going to get an extension," said Chris Weston, head of research at Pepperstone Group Ltd in Melbourne, adding that another 90-day truce was most likely. With the U.S. and China seeking to close a deal averting triple-digit goods tariffs, a U.S. official told Reuters that chip makers Nvidia (NVDA.O) , opens new tab and AMD (AMD.O) , opens new tab had agreed to allocate 15% of China sales revenues to the U.S. government, aiming to secure export licences for semiconductors. "I don't know if that's going to be a good thing or a bad thing, but if it puts closure on the matter, it's not a bad outcome," Weston said. "If this is Trump saying 15% and we'll call it a day, that may not be too bad." The offshore yuan fluctuated between gains and losses, trading at 7.1913 to the dollar, after weekend data showed China's producer prices fell more than expected in July, while consumer prices were unchanged. The Australian dollar fetched $0.6514 , trading down 0.2% ahead of a rate decision on Tuesday, in which it is widely expected that the Reserve Bank of Australia will cut rates by 25 bps to 3.60%, after second-quarter inflation came in weaker than expected and the jobless rate hit a 3-1/2-year high. Cryptocurrencies jumped, with bitcoin rising as high as $122,308, not far from its July 14 record of $123,153.22, after Trump's executive order on Thursday freed up cryptocurrency holdings in U.S. retirement accounts. Ether rose as high as $4,346.01, its highest since December 2021. https://www.reuters.com/world/china/dollar-steady-before-us-inflation-report-us-china-tariff-deadline-2025-08-11/
2025-08-11 11:55
US consumer price index data due on Tuesday US gold futures down more than 2% Markets expect Fed interest rate cut in September Aug 11 (Reuters) - Gold prices fell more than 1% on Monday as investors waited for news from the White House on potential tariffs on bullion and U.S. inflation data that will provide a steer on the Federal Reserve's interest rate path. Spot gold was down 1.4% at $3,350.94 an ounce by 1135 GMT after touching $3,408.06 on Friday, its highest since July 23. Sign up here. U.S. gold futures for December delivery fell 2.5% to $3,404.90, having hit a record high of $3,534.10 on Friday after reports that Washington had imposed tariffs on imports of 1 kg (2.2 lb) bullion bars. The White House said on Friday that it would issue an executive order clarifying its stance on the tariffs. "Spot gold is tumbling, along with futures, as markets unwind the initial shock from U.S. tariffs potentially plunging bullion flows into chaos," said Han Tan, chief market analyst at investment trading platform Nemo.Money. Market attention is also focused on Tuesday's U.S. consumer price data, with tariffs expected to push core inflation up 0.3%, lifting the annual rate to 3%, well above the Fed's 2% target. "Lower than expected CPI prints that bolster bets for Fed rate cuts by year-end may restore spot gold above the psychological $3,400 level," Tan said. A recent softer than expected U.S. jobs report has prompted markets to price in a near 90% chance of a September cut to interest rates and at least one more reduction by the end of the year. Lower rates typically benefit non-yielding gold. On the trade front, a deadline for China to agree a tariff deal with Washington, due to expire on Tuesday, is expected to be extended again, while U.S. President Donald Trump and Russian leader Vladimir Putin are due to meet in Alaska on Friday to discuss ending the Ukraine war. "Rising expectations of a peace deal between Ukraine and Russia, negotiated by Trump, have reduced some safe haven demand (for gold)," SP Angel analyst John Meyer said in a note. In other precious metals, spot silver fell 1.5% to $37.74 an ounce, platinum was down 2% at $1,307.70 and palladium lost 0.2% to $1,123.43. https://www.reuters.com/world/china/gold-weakens-markets-await-clarity-bullion-tariffs-2025-08-11/
2025-08-11 11:51
Aug 11 (Reuters) - An area of low pressure located just west of the Cape Verde islands has a 90% chance of becoming a cyclone in the next 48 hours, the U.S. National Hurricane Center said on Monday. Heavy rainfall and gusty winds are expected to continue across portions of the islands off West Africa and authorities there should monitor the progress of this weather system, the NHC said in its latest advisory. Sign up here. https://www.reuters.com/business/environment/us-nhc-cites-90-chance-cyclone-near-cape-verde-islands-2025-08-11/
2025-08-11 11:19
Shares drop almost 30% after rights issue announcement Says cash will provide financial robustness in 2025-2027 Danish state to maintain majority stake in Orsted Morgan Stanley to underwrite any unsubscribed shares COPENHAGEN, Aug 11 (Reuters) - Denmark's Orsted (ORSTED.CO) , opens new tab on Monday asked its shareholders for 60 billion crowns ($9.4 billion), sending the stock sharply lower as the wind farm developer seeks to boost its finances amid U.S. President Donald Trump'sopposition to wind power. Struggling in recent years with soaring inflation and logistical problems that sent costs soaring, the offshore wind industry faced a further setback when Trump suspended licensing on his first day back in office in January. Sign up here. "Orsted and our industry are in an extraordinary situation with the adverse market development in the U.S. on top of the past years’ macroeconomic and supply chain challenges," CEO Rasmus Errboe said in a statement. Increased uncertainty in the U.S. market in recent months meant that potential investors for Orsted's Sunrise Wind project under development on the U.S. East Coast pulled out. As a result, the company is forced to cover all costs related to the project, which led to increased funding requirements of around 40 billion crowns, it said. Orsted depends on selling full or partial stakes in its offshore wind farms in order to finance new projects. The rest of the expected proceeds from the rights issue would strengthen Orsted's capital structure and help it develop the 8.1 gigawatts of offshore wind projects currently under construction by 2027, the company said. Orsted shares fell as much as 29% to a nine-year low on Monday. At 1039 GMT, they were down 27.6% at 223.2 crowns. "The U.S. offshore wind market was crippled after Trump took office," said Sydbank analyst Jakob Pedersen. "Orsted's plan to raise capital was not just the correct option, it was the only option." SHOCKWAVES Trump campaigned on a promise to end the offshore wind industry, saying it is too expensive and hurts whales and birds. In April, his administration ordered Equinor (EQNR.OL) , opens new tab to halt development of a fully-permitted wind farm off New York, sending shockwaves through the industry. The order was, however, reversed the following month. Errboe, who replaced former CEO Mads Nipper earlier this year, has sought to cut costs and cancelled projects in the U.S. and UK. The rights issue is worth almost half of Orsted's market value of around 130 billion crowns as of Friday's close. Jefferies analysts said in a note that while the fundraising would help to de-risk the company's balance sheet, the near-term dilution for shareholders "seems substantial". Orsted said in a statement that the Danish state, which owns 50.1% of the company, had agreed to subscribe to a similar portion of the share issue, thus retaining a majority stake. "Orsted is an extremely important company in the green transition, and there is also a security policy dimension where we need to be independent of energy from Russia," Denmark's Finance Minister Nicolai Wammen told broadcaster TV2. A spokesperson for Equinor, which holds a 10% stake in Orsted, said it would "assess the proposal". Shares not subscribed for by the existing shareholders or other investors will be fully underwritten by Morgan Stanley, Orsted said. The company also said it expects to raise more than 35 billion crowns from selling its European onshore wind business as well as from planned divestments of stakes in its Changhua 2 offshore wind farm in Taiwan and Hornsea 3 in Britain. ($1 = 6.3953 Danish crowns) https://www.reuters.com/world/europe/denmarks-orsted-seeks-94-billion-us-wind-market-falters-2025-08-11/
2025-08-11 10:41
LONDON, Aug 11 (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. Buoyant stock markets and an event-free Monday are allowing investors to prep for the three big events of the week: Tuesday's U.S. consumer inflation report, the China trade deadline and Friday's U.S.-Russia summit in Alaska. Doubts about the strength of the jobs market and revolving doors on the Federal Reserve board have traders betting on a Fed rate cut next month. Tuesday's consumer price report for July is one of the few data sets that could alter that thinking as the potential price impact of tariffs is examined. The embattled Bureau of Labor Statistics will publish the numbers, and the consensus forecast is for annual headline and core CPI gains to tick up a tenth each to 2.8% and 3.0%, respectively, both well above the Fed's 2% target and heading in the wrong direction. * Wall Street futures and Treasuries were both firmer ahead of the big inflation number, with bond market volatility gauges at their lowest in three years (.MOVE) , opens new tab and last week's S&P 500 gains bringing the index back within 1% of all-time highs. The dollar was largely flat. * Last week's U.S. tariff day passed without causing major market moves, but Tuesday brings a separate deadline on U.S.-China trade as President Donald Trump decides whether to extend the existing truce or let tariffs shoot back up to triple-digit figures. Trump on Sunday urged China to quadruple its soybean purchases, sending Chicago soybean prices higher, and - in a highly unusual move - Nvidia and AMD reportedly agreed to give the U.S. government 15% of their revenue from sales to China of advanced AI chips such as Nvidia's H20. Chinese stocks were a touch higher ahead of the deadline. * Bitcoin surged 4% to a high of $122,308 on Monday, back within sight of the July 14 record of $123,153, in what appeared like a delayed reaction to Trump's executive order last week enabling crypto holdings to be held in U.S. retirement accounts. * Finally, Friday's Alaska summit will be watched closely by European markets monitoring possible breakthroughs on ending the Ukraine war. For today’s deep dive, I’ll discuss why whatever happens at September’s Fed meeting matters less than concerns about a potential rethink of the Fed’s entire structure. Today's Market Minute * Nvidia and AMD have agreed to give the U.S. government 15% of revenue from sales to China of advanced computer chips like Nvidia's H20 that are used for artificial intelligence applications, a U.S. official told Reuters on Sunday. * From McDonald's and Coca-Cola to Amazon and Apple, U.S.-based multinationals are facing calls for a boycott in India as business executives and Prime Minister Narendra Modi's supporters stoke anti-American sentiment to protest against U.S. tariffs. * Investors are backing out of or taking active bets against high-priced corporate credit, where they anticipate a correction in response to signs of slowing economic growth that could eventually impact stocks. * The crude oil market's sanguine reaction to the U.S. threats to India over its continued purchases of Russian oil is effectively a bet that very little will actually happen, writes ROI columnist Clyde Russell. * Inadvertent fumbles in the presentation of financial data have become endemic across the media space, which can confuse readers at a time when statistical literacy is more important than ever. Income Securities Advisor , opens new tab publisher Marty Fridson explains why having a basic grasp of statistics and finance is especially crucial today. Chart of the day China's producer prices fell more than expected in July, while consumer prices were flat, underscoring the impact of sluggish domestic demand and persistent trade uncertainty on consumer and business sentiment. Deflationary pressures have prompted Chinese authorities to address overcapacity in key industries. However, the latest round of industrial restructuring appears to be a pared-down version of the sweeping supply-side reforms launched a decade ago that were pivotal in ending a deflationary spiral. Today's events to watch * Mexico June industry output (8:00 AM EDT) 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-2025-08-11/
