2025-08-08 11:05
MUMBAI/NEW DELHI Aug 8 (Reuters) - India has approved 300 billion rupees ($3.4 billion) compensation to oil marketing companies for losses incurred in selling subsidised cooking gas, Information and Broadcasting Minister Ashwini Vaishnaw said on Friday. The compensation, approved by Prime Minister Narendra Modi's cabinet, would be paid to state-run Indian Oil Corp (IOC.NS) , opens new tab, Bharat Petroleum Corp (BPCL.NS) , opens new tab and Hindustan Petroleum Corp (HPCL.NS) , opens new tab in 12 tranches, according to a government statement. Sign up here. It will allow state-run oil companies to continue crude procurement, debt servicing, and sustaining capital expenditure, the statement said. "As gas prices are impacted by geopolitics, the subsidy will insulate the country's middle-class families from any negative impact," Vaishnaw said at a briefing. The government also allocated 120.6 billion rupees towards a scheme to provide subsidised cooking gas connections to women from nearly 100 million poor households. ($1 = 87.6880 Indian rupees) https://www.reuters.com/world/india/india-approves-34-billion-payout-state-run-refiners-cooking-gas-losses-2025-08-08/
2025-08-08 10:55
Dollar firms slightly versus peers Weighed on this week by rate cut bets, Trump's Fed pick Traders pricing two U.S. rate cuts this year Pound boosted by narrow BoE vote to cut rates SINGAPORE/LONDON, Aug 8 (Reuters) - The dollar firmed slightly on Friday but was heading for a weekly fall as U.S. President Donald Trump's temporary choice for a fill-in Federal Reserve governor stoked expectations for a dovish pick to replace chair Jerome Powell when his term ends. The yen was a touch weaker on the day against the dollar, which fell 0.31% to 147.560 yen. The dollar also rose 0.25% against the euro to $1.163775 and strengthened 0.29% against the Swiss franc to 0.80840 francs. Sign up here. As concerns over softening U.S. economic momentum, especially in the labour market, boost hopes of Fed rate cuts, the dollar was down 0.6% on the week so far, against a basket of peers. On the day the dollar index was up 0.1% at $98.15. Markets are focused on Trump's nomination of Council of Economic Advisers Chairman Stephen Miran to fill a newly vacant seat at the Fed, while the White House seeks a permanent occupant. Miran replaces Governor Adriana Kugler following her surprise resignation last week. "In many ways it reinforces what we already knew, which is that we're now looking at a much more political Fed and a much less independent Fed," said Michael Brown, senior research strategist at Pepperstone. Brown said that the news would contribute to his longer-term dollar bear case, but also argued Miran's credibility in the market's mind is relatively low. "We're all expecting at the September FOMC and any meeting he joins after that that he'll be very doveish and will be pushing for large rate cuts and that that will come effectively because the President has asked him to," said Brown. While investors remain worried about the U.S. central bank's independence and credibility after repeated criticism from Trump for not cutting interest rates, some analysts feel Miran's appointment is unlikely to have a material impact. "We still maintain that central bank independence is going to be very much intact," said Raisah Rasid, global market strategist at J.P. Morgan Asset Management in Singapore. She expects the central bank to focus on incoming data and the overall health of the U.S. economy. Trump's scathing attacks on Powell and the likelihood of a dovish pick as the next Fed Chair have weighed on the dollar this week, although he recently backed off threats to oust Powell before his term ends on May 15. Fed Governor Christopher Waller, who voted for a rate cut in the Fed's last meeting, is emerging as a top candidate to be the next chair, Bloomberg news said on Thursday. Investor focus will now switch to next week's U.S. consumer price inflation data with economists polled by Reuters expecting month-on-month core CPI to have nudged higher to 0.3% in July. The data will offer clues to whether tariff-driven price pressures are materialising and shape the Fed's policy path. Atlanta Fed president Raphael Bostic said on Thursday while risks to the job market have increased, it remained too soon to commit to rate cuts, with more data lined up ahead of the Fed's policy review scheduled for September 16 and 17. Traders are pricing in a 93% chance of a rate cut in September, with at least two rate cuts priced in by the end of the year. The dollar has struggled broadly this year and is down 9.5% against a basket of major peers, as investors sought alternatives, worried over Trump's erratic trade policies. Analysts anticipate the dollar to remain under pressure but see the fall unlikely to be as steep. "We're looking for a bending but not breaking sort of scenario (on the dollar)," Rasid added. Sterling touched a fresh two-week high of $1.34515, clinging to Thursday's sharp gains as the Bank of England cut interest rates but only after a narrow 5-4 vote, showing a lack of conviction in its easing bias. The vote split in the BoE meet "implies one of the most hawkish versions of a 25bp cut that reasonably could have been expected," analysts at Goldman Sachs said. The pound is on course for its best weekly performance since late June. (This story has been corrected to clarify Stephen Miran has been nominated to fill a vacancy at the Fed, not the Council of Economic Advisers, in paragraph 4) https://www.reuters.com/world/middle-east/forex-dollar-firms-stays-track-weekly-loss-after-trumps-fed-governor-pick-2025-08-08/
2025-08-08 10:47
MUMBAI, Aug 8 (Reuters) - The Indian rupee ended lower for a fifth straight week, its biggest consecutive weekly drop in six months, as trade tensions between India and the United States escalated following President Donald Trump's call for new tariffs on Indian goods. The rupee closed marginally higher at 87.6550 against the U.S. dollar, from 87.7025 on Thursday. Sign up here. The currency opened at 87.5600 and reached an intraday high of 87.5350, supported by unwinding of long dollar positions in the NDF market. Dollar bids, primarily from oil importers, pushed the USD/INR higher after initial lows, traders said. For the week, the rupee eased 0.1%, following a 1.2% drop last week, and has depreciated nearly 3% over the past five weeks. Rising pressure on the rupee was driven by India’s position among the hardest-hit countries in Trump's trade offensive, including a new 25% tariff on Indian goods. The move places India alongside Brazil, facing the steepest import duties, unsettling markets concerned about the impact on capital flows and investor sentiment towards Indian assets. Fears of a record low in the currency prompted the Reserve Bank of India to intervene almost daily, preventing a deeper slide, traders said. The RBI resumed intervention in the NDF market to manage rupee volatility, four bankers told Reuters. Market participants expect another drop in foreign exchange reserves that saw a decline of more than $9 billion in week ended August 1, indicating intervention in the spot market. Meanwhile, some remain hopeful that a resolution would be achieved in coming period. Looking at the recent history, there is a high probability that the U.S. lowers tariffs in coming weeks or months and this could lead to a relief rally in Indian markets, as and when it happens, said Nishit Master, portfolio manager at Axis Securities PMS. https://www.reuters.com/world/india/rupee-logs-worst-losing-streak-6-months-us-tariff-woes-rbi-caps-damage-2025-08-08/
2025-08-08 10:44
IOC, BPCL snap up spot crude after halting Russian oil buys IOC buys 5 million bbls crude for October arrival in latest tender, sources say BPCL buys 9 million bbls crude for September delivery, source says NEW DELHI/SINGAPORE, Aug 8 (Reuters) - India's biggest state refiners Indian Oil Corp and Bharat Petroleum have bought at least 22 million barrels of non-Russian crude for delivery in September and October, trade sources said, after the U.S. pressured India to halt purchases from Russia. Indian state refiners had been largely absent from the spot market since 2022, instead becoming one of the few purchasers of cheaper Russian crude after Russia's invasion of Ukraine. They paused Russian purchases in late July after pressure from U.S. President Donald Trump. Sign up here. "As President Trump is applying pressure on the country of India, not individual entities, no doubt... there will be discussion between the government and those refiners continuing to import," said Harry Tchilinguirian, group head of research at Onyx Capital Group. In its latest tender, IOC (IOC.NS) , opens new tab bought 2 million barrels of U.S. Mars crude, 2 million barrels of Brazilian grades, and another 1 million barrels of Libyan crude on a delivered basis, the sources said. BP (BP.L) , opens new tab sold the high-sulphur Mars crude cargo at $1.5-$2 a barrel above September Dubai quotes, they added. European trader Petraco sold the 1 million barrels of Libyan Sarir and Mesla crude and Totsa, the trading arm of TotalEnergies (TTEF.PA) , opens new tab, sold the 2 million barrels of Brazilian Sepia and Sururu crude, the sources said. The prices for these cargoes were not immediately available. Those deals follow IOC's purchase of 8 million barrels of September delivery crude from the Middle East, U.S., Canada and Nigeria via tenders in the past week. India's second biggest state refiner BPCL (BPCL.NS) , opens new tab bought 9 million barrels of oil through negotiations for September arrival, a source familiar with the purchases said. That included 1 million barrels of Angola Girassol, 1 million barrels of U.S. Mars, 3 million barrels of Abu Dhabi Murban and 2 million barrels of Nigerian oil, he said. Companies typically do not comment on crude deals, citing confidentiality. The combined spot purchases by the two state refiners for September and October are equivalent to about 6% of India's crude processing in May, Reuters calculations showed. The arbitrage economics of sending Atlantic Basin grades to Asia have also improved for Asian refiners, supporting these purchases, the sources said. https://www.reuters.com/markets/emerging/indian-state-refiners-step-up-non-russian-oil-purchases-under-trump-pressure-2025-08-08/
2025-08-08 10:43
BEIJING, Aug 8 (Reuters) - President Xi Jinping on Friday ordered "all-out" rescue efforts in China's arid and mountainous northwest after flash floods caused by exceptionally heavy rain killed 10 people and left 33 missing. Torrential downpours began around 6 p.m. on Thursday and unleashed flash floods in Gansu province's Yuzhong, stranding some 4,000 people, state broadcaster China Central Television (CCTV) reported. Sign up here. In one mountainous area, precipitation had reached up to 195mm (7.7 inches) since early Thursday evening. Yuzhong county normally sees 300-400mm of rainfall for the entire year. Yuzhong is situated among gullies and hills of wind-blown silt on one of the world's biggest loess plateaus. That makes it vulnerable to flash floods and landslides given the loose structure of the soil, which becomes unstable when saturated with water. Ankle-high muddy water could be seen coursing down a hilly road flanked by uprooted trees in a video posted by CCTV. "The top priority must be to make every possible effort to search for and rescue missing people, relocate and resettle people under threat, minimise casualties, and restore communications and transportation as quickly as possible," CCTV quoted Xi as saying. He warned local governments not to succumb to "complacency and carelessness" in light of recent occurrences of extreme weather, CCTV said. Record rainfall has lashed China's north and south in recent weeks in what meteorologists describe as extreme weather events linked to climate change. Heavy rains and flooding have killed at least 60 people across northern China including Beijing since late July. The National Development and Reform Commission said on Friday it has allocated 100 million yuan ($13.92 million) to support rescue efforts in Gansu following the disaster. China has announced at least 6 billion yuan of funding for disaster relief since April. ($1 = 7.1837 Chinese yuan renminbi) https://www.reuters.com/sustainability/climate-energy/xi-orders-all-out-rescue-floods-kill-10-northwest-china-2025-08-08/
2025-08-08 10:41
LONDON, Aug 8 (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. The S&P 500 may have stalled on Thursday, but the Nasdaq hit a new high, as a week of positive earnings surprises and rising Fed easing expectations overshadowed tariff worries and a few isolated stock flubs. Tech excitement continues to push up all major index futures ahead of Friday's bell. * The stock stumbles on Thursday included an outsize 14% earnings-day hit to pharma giant Eli Lilly after a disappointing drug trial and a 3% drop in Intel after Trump demanded the resignation of its CEO due to Chinese links. * Longer-term Fed easing expectations were buoyed after Trump said he will nominate Council of Economic Advisors Chairperson Stephen Miran to temporarily fill Adriana Kugler's vacant board seat and dovish Fed Governor Chris Waller was reported to be his top pick for the Chair next year. JPMorgan now expects a rate cut next month, and the futures market is pricing in rates as low as 3% by the end of next year, about 20 basis points lower than expected a month ago. * U.S. Treasury yields flatlined and the dollar nudged higher, as Thursday's long-bond auction continued a week of lukewarm debt sales and weekly jobless claims data showed few signs of the softness flagged in last week's payrolls report. Sterling was firmer after the Bank of England only narrowly voted to cut rates on Thursday, and the peso was steady after Mexico's central bank eased again too. * U.S. gold futures climbed to a record high on Friday after a Financial Times report said the United States had imposed tariffs on imports of one kilo and 100 ounce gold bars, a move that could impact Switzerland, the world's largest gold refining hub. Crude oil prices fell to two-month lows as the expected talks between Trump and Russian President Vladimir Putin raised the prospect of easing sanctions on Russia. Today's Market Minute: * U.S. President Donald Trump has wielded the threat of tariffs as an all-purpose foreign policy weapon. With a Friday deadline for Russia to agree to peace in Ukraine or have its oil customers face secondary tariffs, Trump has found a novel, but risky, use for his favorite trade tool. * OpenAI launched on Thursday its GPT-5 artificial intelligence model, the highly anticipated latest installment of a technology that has helped transform global business and culture. * Israel's political-security cabinet approved a plan early on Friday to take control of Gaza City, as the country expands its military operations despite intensifying criticism at home and abroad over the devastating almost two-year-old war. * Britain's ambition to rev up its economy and tap the AI revolution faces the harsh reality that the abundant, clean and reliable electricity supply this requires is unlikely to materialise any time soon. Read the latest from ROI energy columnist Ron Bousso. * U.S. President Donald Trump has the so-called 'BRIC' group of nations directly in his trade war crosshairs, slapping super-high tariffs on imports from Brazil and India. But this belligerence could backfire writes ROI columnist Jamie McGeever. Chart of the day: The New York Fed's latest survey of household inflation expectations saw the long-term price rise outlook creeping back up to the highest since March, with views over one, three and five years now converging toward 3% - a point above the Fed's 2% inflation target. However, the history of the survey shows consumer views frequently gravitate to these levels over the past decade even before the post-pandemic inflation surge and during periods when actual inflation was much lower. Weekend reads: TRUMP WINNING?: Just over six months into his second term in the White House and amid huge economic policy disruption, Trump looks to be getting what he wants , opens new tab without bowling over the economy, writes former International Monetary Fund chief economist Kenneth Rogoff in a review. How successful those wins prove over the longer run remains far less clear, he argues on Project Syndicate. DATA MANIPULATION COSTS?: Trump's firing of the Bureau of Labor Statistics chief has raised questions about politically-biased government economic data going forward. Council on Foreign Relations fellow Benn Steil gives a glimpse of what studies show about the cost of data manipulation , opens new tab elsewhere in the world. CHINA TRADE AND EU JOBS: Following a recent European Central Bank blog on the impact of rising Chinese imports on European inflation, the ECB's latest bulletin contains a piece on how rising Chinese import competition , opens new tab - partly due to trade diversion from tariffed U.S. markets - might affect European labor markets. While auto and chemical sectors are already affected, it reckons the broader implications might extend to nearly one-third of euro area employment. OFFSETTING 'CHINA SHOCK': America's hit from Chinese competition has only really been felt in Germany since 2020, argues Technical University of Munich Professor Dalia Marin in a VoxEU column. To avoid America's painful de-industrialisation of the 2000s, she says, Chinese market entry in Europe should be made conditional on forming joint ventures with European firms , opens new tab in order to retain global competitiveness. MUSK VS MODI?: Elon Musk's court case against Indian Prime Minister Narendra Modi's government in the Karnataka High Court targets the entire basis for tightened internet censorship in India, one of the biggest user bases of Musk's X platform. As regulators globally weigh free-speech protections against concern about harmful content, Reuters Munsif Vengattil, Arpan Chaturvedi and Aditya Kalra give a detailed account of this pivotal battle between the world's richest person and authorities of the world's most populous country. Today's events to watch * Canada July employment report (8:30 AM EDT) * St. Louis Federal Reserve President Alberto Musalem speaks; Bank of England Chief Economist Huw Pill speaks 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-2025-08-08/
