2025-08-02 07:50
KILIS, Turkey, Aug 2 (Reuters) - Azerbaijan will export 1.2 billion cubic metres of gas to Syria each year from the Shah Deniz gas field in the Azeri Caspian Sea led by BP (BP.L) , opens new tab, Elshad Nasirov, vice president of Azeri state energy company SOCAR told Reuters on Saturday. Nasirov was speaking in southern Turkey, close to the Syrian border, as Turkey and Azerbaijan launched natural gas exports to Syria. Sign up here. https://www.reuters.com/business/energy/azerbaijan-send-12-billion-bcm-gas-syria-through-turkey-annually-says-socar-2025-08-02/
2025-08-02 07:49
Trump claims in social media post that jobs numbers were rigged No evidence to back Trump's claims Fed Governor Kugler resigns, giving Trump an early chance for an appointment Economists already have growing concerns about US data quality WASHINGTON/NEW YORK, Aug 1 (Reuters) - President Donald Trump on Friday fired a top Labor Department official on the heels of a market-shocking weak scorecard of the U.S. job market, accusing her without evidence of manipulating the figures and adding to already growing concerns about the quality of economic data published by the federal government. In a second surprise economic policy development, the door for Trump to make an imprint on a Federal Reserve with which he clashes almost daily for not lowering interest rates opened much earlier than anticipated when Fed Governor Adriana Kugler unexpectedly announced her resignation on Friday afternoon. Sign up here. The two developments further rattled a stock market already reeling from his latest barrage of tariff announcements and the weak jobs data. The benchmark S&P 500 Index (.SPX) , opens new tab sank 1.6% in its largest daily drop in more than two months. Trump accused Erika McEntarfer, appointed by former President Joe Biden, of faking the jobs numbers. There is no evidence to back Trump's claims of data manipulation by the Bureau of Labor Statistics, the statistical agency that compiles the closely watched employment report as well as consumer and producer price data. A representative for the BLS did not respond to a request for comment. Friday began with BLS reporting the U.S. economy created only 73,000 jobs in July, but more stunning were net downward revisions showing 258,000 fewer jobs had been created in May and June than previously reported. "We need accurate Jobs Numbers. I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY. She will be replaced with someone much more competent and qualified," Trump said in a post on Truth Social. DATA CONCERNS A Trump administration official who requested anonymity said that while all economic data is noisy, the White House has been dissatisfied with how large the revisions have been in the recent data and issues with lower survey responses. The problem started during COVID and has not been addressed in the years since. "There are these underlying problems that have been festering here for years now that have not been rectified," the person said. "The markets and companies and the government need accurate data, and like, we just weren't getting that," the official said. The BLS has already reduced the sample collection for consumer price data as well as the producer price report, citing resource constraints. The government surveys about 121,000 businesses and government agencies, representing approximately 631,000 individual worksites for the employment report. The response rate has declined from 80.3% in October 2020 to about 67.1% in July, BLS data shows. A Reuters poll last month found 89 of 100 top policy experts had at least some worries about the quality of U.S. economic data, with most also concerned that authorities are not addressing the issue urgently enough. In addition to the concerns over job market data, headcount reductions at BLS have resulted in it scaling back the scope of data collection for the Consumer Price Index, one of the most important gauges of U.S. inflation, watched by investors and policymakers worldwide. Trump's move fed into concerns that politics may influence data collection and publication. "Politicizing economic statistics is a self-defeating act," said Michael Madowitz, principal economist at the Roosevelt Institute's Roosevelt Forward. "Credibility is far easier to lose than rebuild, and the credibility of America's economic data is the foundation on which we've built the strongest economy in the world. Blinding the public about the state of the economy has a long track record, and it never ends well." FED CHANGE SOONER THAN EXPECTED Meanwhile, Kugler's surprise decision to leave the Fed at the end of next week presents Trump an earlier-than-expected opportunity to install a potential successor to Fed Chair Jerome Powell on the central bank's Board of Governors. Trump has threatened to fire Powell repeatedly because the Fed chief has overseen a policymaking body that has not cut interest rates as Trump has demanded. Powell's term expires next May, although he could remain on the Fed board until January 31, 2028, if he chooses. Trump will now get to select a Fed governor to replace Kugler and finish out her term, which expires on January 31, 2026. A governor filling an unexpired term may then be reappointed to a full 14-year term. Some speculation has centered on the idea Trump might pick a potential future chair to fill that slot as a holding place. Leading candidates for the next Fed chair include Trump economic adviser Kevin Hassett, Treasury Secretary Scott Bessent, former Fed Governor Kevin Warsh and Fed Governor Chris Waller, a Trump appointee who this week dissented with the central bank's decision to keep rates on hold, saying he preferred to start lowering them now. Trump, as he was leaving the White House to spend the weekend at his Bedminster, New Jersey, estate, said he was happy to have the open slot to fill. "I would not read any political motivation into what [Kugler is] doing, although the consequence of what she's doing is she's calling Trump's bluff," said Derek Tang, an analyst at LH Meyer, a research firm. "She's putting the ball in his court and saying, look, you're putting so much pressure on the Fed, and you want some control over nominees, well, here's a slot." https://www.reuters.com/legal/litigation/trump-fires-us-labor-official-over-data-gets-earlier-than-expected-chance-2025-08-02/
2025-08-02 00:40
MEXICO CITY, Aug 1 (Reuters) - Walmart's Mexico and Central America chief executive, Ignacio Caride, will step down as CEO and from the board of directors after just over a year, the unit of the U.S. retailer said on Friday in a move that surprised analysts. Walmart's Chile CEO, Cristian Barrientos Pozo, will take over as interim chief executive until a recruitment process is completed, the company said in a statement. Sign up here. Barrientos Pozo, previously senior vice president of operations at Walmart de Mexico, brings more than 26 years of retail experience, including in expansion, store openings and digital transformation, the company said. The company, Mexico's largest retailer, operates Walmart, Sam's Club, and Bodega Aurrera stores across six countries. Known as Walmex, the company reported a 10% drop in net profit in its second-quarter results released in July, citing a slower-than-anticipated recovery in consumer spending despite an 8% increase in sales. CHANGE WELCOMED DESPITE SURPRISE Caride's resignation, while unexpected, could be a refreshing change, analysts said. JPMorgan analysts said that despite the "typical noise" around management changes, a refreshed leadership could be welcomed. "Investor concerns have been building around the retail execution weakening over the past year with poor results," the bank said in a note. Antonio Hernandez of Actinver research called the timing "unexpected but positive," especially given the company's declining margins in a competitive market. "We view favorably the company's fully hands-on approach to improve performance," he said. Santander analysts said that while the change could create short-term stock volatility, Barrientos' strong record and familiarity with the market "should help ease concerns during this transition period." https://www.reuters.com/sustainability/boards-policy-regulation/walmarts-mexico-ceo-caride-steps-down-surprise-move-2025-08-01/
2025-08-01 23:33
Tenets agreed on Friday in Washington summarize the framework Rwanda, Congo signed peace deal in June in Washington Joint security coordination mechanism meeting set for August 7, source says WASHINGTON/DAKAR, Aug 1 (Reuters) - Rwanda and the Democratic Republic of Congo on Friday agreed on an outline for the regional economic integration framework, according to the U.S. State Department, as the two countries take steps toward delivering on a peace deal signed in Washington in June. The tenets agreed on Friday summarize the framework, which includes elements of cooperation on energy, infrastructure, mineral supply chains, national parks and public health, the State Department said in a statement. Sign up here. Rwanda and Congo signed a peace deal in Washington in June at talks held by U.S. President Donald Trump's administration, which aims to bring an end to fighting that has killed thousands and attract billions of dollars of Western investment to a region rich in tantalum, gold, cobalt, copper, lithium and other minerals. As part of the deal, Kinshasa and Kigali agreed to launch a regional economic integration framework within 90 days, the agreement said. A source familiar with the matter said a preliminary draft of the framework has been agreed to and there would now be an input period to get reaction from the private sector and civil society before it is finalized. The framework is planned to be signed at a meeting of heads of state at the White House. No date has been set yet for that meeting, the source said. In the Friday statement, Rwanda and Congo affirmed that each country has "full, sovereign control" over the exploitation, processing and export of its natural resources and recognized the importance of developing mineral processing and transformation capacity within each country, according to a copy seen by Reuters. Kinshasa views the plundering of its mineral wealth as a key driver of the conflict between its forces and Rwanda-backed M23 rebels in eastern Congo. Reuters reported in May that Congolese minerals such as tungsten, tantalum and tin, which Kinshasa has long accused neighbouring Rwanda of illegally exploiting, could be exported legitimately to Rwanda for processing under the terms of the deal being negotiated by the U.S., according to sources. The two countries are committed to ensuring that the minerals trade no longer provides funding to armed groups and to create a world-class industrial mining sector in the region, as well as to ensure better cross-border interoperability on mineral supply chains, according to the statement. NEW INFRASTRUCTURE They also agreed to connect new infrastructure to the U.S.-backed Lobito Corridor, underscoring Washington's aim of greater access to resources in the region and efforts to counter China. The Ruzizi III hydropower project and Lake Kivu methane exploitation were the only specific projects mentioned in the statement, despite U.S. emphasis on critical minerals. The countries said they intended to prioritize financing for Ruzizi and work together to exploit the methane gas sustainably. Friday's announcement comes after the two countries held the first meeting of a joint oversight committee on Thursday in a step toward implementing the Washington peace deal even as other commitments are yet to be fulfilled. In the Washington agreement, the two African countries pledged to implement a 2024 deal that would see Rwandan troops withdraw from eastern Congo within 90 days. Congolese military operations targeting the Democratic Forces for the Liberation of Rwanda (FDLR), a Congo-based armed group that includes remnants of Rwanda's former army and militias that carried out a 1994 genocide, are meant to conclude over the same timeframe. The deal also said Congo and Rwanda would form a joint security coordination mechanism within 30 days and implement a plan agreed last year to monitor and verify the withdrawal of Rwandan soldiers within three months. But 30 days from the signing has passed without a meeting of the joint security coordination mechanism. The source familiar with the matter said the joint security coordination mechanism meeting would be held on August 7 in Addis Ababa. Congo is also involved in direct talks with M23 hosted by Qatar, and last month the two sides pledged to sign a separate peace agreement by August 18, though many outstanding details need to be negotiated. (This story has been corrected to update the dateline and to show that the peace deal was signed in June) https://www.reuters.com/world/africa/rwanda-congo-agree-outline-economic-framework-part-peace-deal-2025-08-01/
2025-08-01 22:16
SAO PAULO, Aug 1 (Reuters) - Brazil's National Monetary Council (CMN), the country's top economic policy body, approved on Friday fresh rules for the contributions that financial institutions associated with the country's Credit Guarantee Fund (FGC) must make to the fund. Among the changes, the CMN increased the so-called additional contribution by doubling its multiplier to 0.02%. The new rules will come into effect in June 2026. Sign up here. In a statement, the body said the measures aim to mitigate excessive risk-taking by the institutions. The FGC is a private nonprofit entity created to manage protection mechanisms for clients of financial institutions in the event of bank resolution. The fund has drawn renewed attention following the high-profile acquisition of lender Banco Master by BRB (BSLI3.SA) , opens new tab, a deal the central bank is currently analyzing. The transaction has sparked scrutiny as it involves two similarly sized banks, with Master having grown rapidly in recent years through an aggressive funding model based on high-yield debt, backed by FGC guarantees and distributed via investment platforms. Under another new rule approved by the monetary council, any member institution deemed excessively leveraged by the technical standards established by the central bank will be required to allocate excess funds to federal government bonds, seen as safe assets, thereby limiting risk-taking in other types of investments. https://www.reuters.com/world/americas/brazil-tightens-credit-fund-rules-limit-bank-risk-taking-2025-08-01/
2025-08-01 21:59
Move aims to bring in partners for data center co-development Shift reflects growing trend among tech giants to share AI infrastructure costs $2.04 bln in land and construction assets reclassified as held-for-sale Aug 1 (Reuters) - Meta Platforms (META.O) , opens new tab is pressing ahead with efforts to bring in outside partners to help fund the massive infrastructure needed to power artificial intelligence, disclosing plans in a filing on Thursday to offload $2 billion in data center assets as part of that strategy. The strategy reflects a broader shift among tech giants — long known for self-funding growth — as they grapple with the soaring cost of building and powering data centers to support generative AI. Sign up here. The social media giant said earlier this week that it was exploring ways to work with financial partners to co-develop data centers to help finance its massive capital outlay for next year. “We’re exploring ways to work with financial partners to co-develop data centers,” Meta Chief Finance Officer Susan Li said on a post-earnings conference call on Wednesday. While the company still expects to fund much of its capital spending internally, some projects could attract “significant external financing” and offer more flexibility if infrastructure needs shift over time, Li said. The company did not have any finalized transactions to announce, she said. The disclosure in Meta's quarterly filing, however, signals that plans are firming up. In its quarterly filing on Thursday, Meta said it had approved a plan in June to dispose of certain data center assets and reclassified $2.04 billion worth of land and construction-in-progress as "held-for-sale". These assets were expected to be contributed to a third party within the next twelve months for co-developing data centers. Meta did not record a loss on the reclassification, which values the assets at the lower of their carrying amounts or fair value less costs to sell. As of June 30, total held-for-sale assets stood at $3.26 billion, according to the filing. Meta declined to comment for this story. CEO Mark Zuckerberg has laid out plans to invest hundreds of billions of dollars into constructing AI data center “superclusters” for superintelligence. “Just one of these covers a significant part of the footprint of Manhattan,” he said. The Instagram and WhatsApp owner on Wednesday raised the bottom end of its annual capital expenditures forecast by $2 billion, to $66 billion to $72 billion. It reported stronger-than-expected ad sales, boosted by AI-driven improvements to targeting and content delivery. Executives said those gains were helping offset rising infrastructure costs tied to its long-term AI push. https://www.reuters.com/business/meta-share-ai-infrastructure-costs-via-2-billion-asset-sale-2025-08-01/
