2025-08-07 14:21
TORONTO, Aug 7 (Reuters) - Canadian economic activity expanded in July at the fastest pace in one year as employment rose, Ivey Purchasing Managers Index (PMI) data showed on Thursday. The seasonally adjusted index rose to 55.8 last month from 53.3 in June, posting its highest level since July 2024. A reading above 50 indicates an increase in activity. Sign up here. The gauge of employment edged up to an adjusted 51.2 from 49.5 in June, while the prices index was at 68.5, down from 70.2. The unadjusted PMI was unchanged from June at 54.6. https://www.reuters.com/world/americas/canadas-ivey-pmi-climbs-one-year-high-july-2025-08-07/
2025-08-07 13:34
Aug 7 (Reuters) - Mexico's headline inflation slowed in July to its lowest level since late 2020, but the closely-watched core rate remained above the central bank's official target, data from national statistics agency INEGI showed on Thursday. The figures were released ahead of the Bank of Mexico (Banxico)'s announcement later in the day of its next interest rate decision. Markets were widely expecting the bank to slow down the pace of monetary easing in Latin America's second-largest economy. Sign up here. Annual inflation in July hit 3.51%, INEGI said, down from 4.32% a month earlier, marking the lowest reading since December 2020. Economists polled by Reuters had expected it to come in at 3.53%. Core inflation, meanwhile, stood at 4.23%, slightly below June's 4.24% and in line with market forecasts. The core index, seen as a better parameter for measuring price trends as it strips out some volatile food and energy prices, remained above the central bank's inflation target of 3%, plus or minus a percentage point. The bank in June lowered its benchmark rate by half a percentage point for the fourth consecutive time to 8%, but the decision by the five-member board was not unanimous, as Deputy Governor Jonathan Heath voted to leave the rate unchanged. According to the minutes from that meeting, all four officials who backed the cut said the board may adopt a more gradual approach in future decisions. The latest inflation data "paves the way for Banxico to deliver the clearly-signaled 25-basis-point cut, to 7.75%," said Capital Economics emerging markets economist Kimberley Sperrfechter. In July alone, consumer prices in Mexico rose 0.27%, according to non-seasonally adjusted figures. The core index rose 0.31% during the month. Both were in line with market expectations. https://www.reuters.com/world/americas/mexicos-inflation-slows-july-central-bank-set-deliver-fresh-rate-cut-2025-08-07/
2025-08-07 12:57
Aug 7 (Reuters) - Cummins India (CUMM.NS) , opens new tab reported a 30.5% rise in first-quarter profit on Thursday, helped by robust demand for its engines and power generators. The company, a unit of U.S.-based truck engine maker Cummins Inc (CMI.N) , opens new tab, said its consolidated profit after tax rose to 6.04 billion rupees ($69.05 million) from 4.63 billion rupees a year ago. Sign up here. Demand for power generation equipment typically rises in the summer due to increased electricity consumption from cooling systems and a higher risk of grid overloads or outages, which helps companies like Cummins India. Despite an early onset of monsoons across India this year, several regions still experienced heat waves. A study found in May that nearly 60% of Indian districts face a "high to very high" risk from extreme heat, with rising night-time temperatures and humidity intensifying. The company had noted demand across the board, including the generator business, in its last earnings call in May. Overall sales rose 25.7% on-year to 28.59 billion rupees in the June quarter. Sales of engines and power generators accounted for the majority of the company's revenue, according to their latest annual report. Cummins also recorded a one-off gain of 125.9 million rupees in the quarter from the sale of its stake in a subsidiary. Total expenses rose by 23.4% to 23.34 billion rupees, primarily driven by a 34.2% surge in raw material costs. Parent Cummins Inc reported second-quarter revenue above Wall Street estimates on Tuesday, helped by strong demand for its power generation systems. Cummins India's shares closed up 1.1% ahead of results. ($1 = 87.4740 Indian rupees) https://www.reuters.com/business/energy/cummins-indias-quarterly-profit-rises-higher-engine-generator-demand-2025-08-07/
2025-08-07 12:51
Aug 7 (Reuters) - Indian jeweller and watchmaker Titan (TITN.NS) , opens new tab reported a 52.5% rise in first-quarter profit on Thursday, benefiting from higher gold prices, even as budget-conscious consumers traded down to low-carat, lightweight designs. Titan, home to the Tanishq and CaratLane jewellery brands, posted a profit of 10.91 billion rupees (nearly $125 million) for the quarter, compared with a profit of 7.15 billion rupees a year earlier. Sign up here. Spot gold prices rose 5.5% in the quarter, continuing its bullish run fuelled by investor flight to safe-haven assets due, in part, to U.S. trade jitters and tensions in the Middle East. Overall, the company's revenue rose 21% to 148.14 billion rupees. Though there was no improvement in the number of customers, like-for-like domestic sales growth was still in the "double digits", Titan had said in July, citing steeper prices as consumers bought investment-grade gold coins and turned to lower-carat gold jewellery. "Consumer confidence in gold as both adornment and store of value remains intact," Managing Director CK Venkataraman said in a statement. Overall sales in Titan's jewellery business, which includes its Zoya and Mia brands and accounts for 88% of total revenue, climbed 19% in the reported quarter. Titan's EBIT (earnings before interest and tax) margin improved to 11.8% from 9.8% a year ago. The jeweller's finance chief had told told Reuters in February that if gold prices continued to rally, Titan's core earnings margin target of 11%-11.5% could be under threat. Revenue in Titan's second-largest segment, watches, rose 24%, as affluent customers opted for premium timepieces. The company is considering setting up a manufacturing base in the Gulf region to retain low-tariff access to the U.S. market, where it has been steadily expanding in recent years, Managing Director C.K. Venkataraman told Reuters on Tuesday. ($1 = 87.5240 Indian rupees) https://www.reuters.com/world/india/indian-jeweller-titans-profit-jumps-over-50-gold-prices-climb-2025-08-07/
2025-08-07 12:49
Aug 7 (Reuters) - Ripple will buy stablecoin payments platform Rail for $200 million, the company said on Thursday, weeks after U.S. President Donald Trump signed a law that raised expectations cryptocurrency tokens are about to enter the mainstream. Ripple, a crypto company that issues the token XRP as well as its own stablecoin called RLUSD, has invested heavily in stablecoin infrastructure in recent months. Sign up here. The acquisition - which will close in the fourth quarter of this year pending regulatory approvals - will enable Ripple and Rail to "deliver the most comprehensive stablecoin payments solution available in the market," it said. It will also add virtual accounts and automated back-office processes to Ripple's existing payments capabilities, the company said in a release. "As regulations become more clear and the space has grown and matured, this opportunity for stablecoin payments is really ripe, and the acquisition of Rail just really solidifies our market leadership in stablecoin payments," said Monica Long, president of Ripple in an interview. Toronto-based Rail, backed by Galaxy Ventures and Accomplice, uses stablecoins to deploy cross-border payments. It says its transactions are cheaper and can clear in just hours, compared to longer settlement times for fiat payments. Rail says on its website that the company is responsible for 10% of all global stablecoin-based payment activity. Trump in July signed a bill into law to create a federal regulatory regime for stablecoins, which analysts said could allow digital assets to become an everyday way to make payments and move money. Stablecoins are designed to maintain a constant value, usually a 1:1 U.S. dollar peg, and their use has exploded, notably by crypto traders moving funds between tokens. Ripple said in April that it would also buy multi-asset prime broker Hidden Road in a $1.25 billion deal, one of its largest acquisitions yet, which it said would enhance RLUSD's utility. Ripple launched RLUSD, a stablecoin pegged to the U.S. dollar, last year, as it sought to disrupt the market dominated by Tether and Circle's USDC. https://www.reuters.com/legal/transactional/ripple-buy-stablecoin-platform-rail-200-million-2025-08-07/
2025-08-07 12:32
Cox plans more than $10 billion in investment in Mexico by 2030 Figure includes $4.2 billion acquisition of Iberdrola's assets Cox will develop new renewable capacity, desalination projects MADRID, Aug 7 (Reuters) - Spanish energy company Cox (COXGA.MC) , opens new tab will focus its new strategic plan on Mexico, where it envisages more than $10 billion in water and renewable energy investments by 2030, CEO Nacho Moreno told Reuters. This figure includes the company's $4.2 billion acquisition of Iberdrola's (IBE.MC) , opens new tab assets in the country, a "transformational" deal that allowed Cox to already reach targets it had set for 2028, Moreno said. Sign up here. The new plan is expected to be presented on September 25. The Iberdrola deal included 15 power plants with 2.6 gigawatts of capacity and an 11.8-GW pipeline of renewable projects. Cox will develop at least two or three gigawatts from this pipeline, Moreno said, and has already identified six desalination projects it will prioritise, which require an investment of around $1.5 billion. "The power demand and the water demand are only growing" in Mexico, he said. "Through this acquisition, we are extremely well-placed to capture both." Moreno expects synergies between Cox's water and energy operations and its unit offering services like engineering and operating and management of facilities and infrastructure. The services unit, for example, will handle engineering for the new capacity it will develop, he said. Cox expects the acquisition will more than double revenue estimates for this year to around 2.7 billion euros ($3.15 billion) and more than triple expected earnings before interest, taxes, depreciation and amortisation to 720 million euros. Operating cash flow should rise to around 450 million euros from around 100 million euros expected previously. "When you generate $500 million of cash flow, clearly you're jumping to another league," Moreno said. The acquisition, 75% of which will be funded with debt and the rest with equity, will be carried out through a new company owned by Cox. Cox will inject capital for the equity, along with two international investors which will get preferred securities, Moreno said, declining to name the investors. For the debt, Cox has secured support from Citigroup (C.N) , opens new tab, Bank of America (BAC.N) , opens new tab, Santander (SAN.MC) , opens new tab, Barclays (BARC.L) , opens new tab and BBVA (BBVA.MC) , opens new tab, he said. ($1 = 0.8573 euros) https://www.reuters.com/business/energy/spains-cox-prepares-multibillion-investment-plan-focused-mexico-2025-08-07/
