2025-07-30 20:31

Fed keeps rates unchanged, two governors dissent U.S. GDP up 3% in Q2 Indexes: Dow off 0.38%, S&P 500 off 0.12%, Nasdaq up 0.15% Market expectations for September rate cut fall below 50% July 30 (Reuters) - U.S. stocks closed well off earlier highs after a choppy session on Wednesday, as Federal Reserve Chair Jerome Powell chilled expectations the central bank might be poised to cut rates at its September meeting. In keeping rates unchanged, as was widely expected, the central bank said "the unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated," in a split decision that saw two governors dissent. Sign up here. Stocks were modestly higher before the Fed statement as investors assessed the first reading of second-quarter economic growth, which was stronger than expected, but underlying details indicated an economy that was likely losing strength. However, stocks retreated after Powell said it was too soon to say whether the Fed would cut rates at its next meeting in September and noted that current policy was modestly restrictive but has not been holding back the economy. "There wasn't too much of a change in the statement here, still showing concerns about how these tariff policies will come through and probably yet to rely on the data that's come through, you can see that just in the GDP report, how much noise is going on in each of these releases right now," said JP Powers, chief investment officer at RWA Wealth Partners in Boston. "If I were Powell, I don't know how much he thinks about his legacy, but I think he's going to err on the side of probably being too late to cut rates here on his way out rather than risk any flare-up just as he's heading off into the sunset." The Dow Jones Industrial Average (.DJI) , opens new tab fell 171.71 points, or 0.38%, to 44,461.28, the S&P 500 (.SPX) , opens new tab lost 7.96 points, or 0.12%, to 6,362.90 and the Nasdaq Composite (.IXIC) , opens new tab gained 31.38 points, or 0.15%, to 21,129.67. The S&P had risen as much as 0.4% on the session before fading. After market expectations for a September rate cut climbed to about 68% following the Fed statement, they fell below 50% in the wake of Powell's comments, according to the LSEG data. Earlier data in the ADP employment report showed private payrolls grew by 104,000 in July, topping forecasts of 75,000, the latest in a string of labor market data this week before Friday's government payrolls report. Megacap companies Microsoft (MSFT.O) , opens new tab and Meta Platforms (META.O) , opens new tab were both up more than 6% in extended trade after reporting quarterly results while investors were still awaiting earnings from Amazon (AMZN.O) , opens new tab and Apple (AAPL.O) , opens new tab on Thursday. The recent batch of corporate earnings initially helped buoy equities, with Teradyne (TER.O) , opens new tab surging 18.9% as one of the best performers on the S&P 500 after its quarterly results. Solid earnings from a host of consumer-facing names also put the resilience of shoppers on display. Starbucks (SBUX.O) , opens new tab posted better-than-expected third-quarter sales, although its shares edged down 0.2%, while Hershey (HSY.N) , opens new tab gained 1.4% after the chocolate and snacks company reported results that topped forecasts. VF Corp (VFC.N) , opens new tab, parent of Vans, beat quarterly revenue estimates and closed up 2.6%. Still, the tariff overhang remained, as President Donald Trump said the U.S. would impose a 50% tariff on copper pipes and wiring, although that fell short of the more draconian measures expected, and excluded copper input materials such as ores, concentrates and cathodes. The tariff weighed heavily on the S&P 500 materials (.SPLRCM) , opens new tab sector, which fell 2%, as Freeport-McMoRan (FCX.N) , opens new tab shares tumbled 9.5%. Declining issues outnumbered advancers by a 2.52-to-1 ratio on the NYSE, while advancing issues outnumbered decliners by a 2.05-to-1 ratio on the Nasdaq. The S&P 500 posted 31 new 52-week highs and 15 new lows, while the Nasdaq Composite recorded 73 new highs and 104 new lows. Volume on U.S. exchanges was 17.66 billion shares, compared with the 17.87 billion average for the full session over the last 20 trading days. https://www.reuters.com/business/equities-retreat-powell-dampens-fed-sept-cut-hopes-2025-07-30/

2025-07-30 20:28

MEXICO CITY, July 30 (Reuters) - Grupo Mexico, a major copper producer, is looking to decide on investments for projects in the United States within the next three to five years, an executive said on a call on Wednesday, as Washington prepares to levy tariffs on some copper products. U.S. copper prices plunged on Wednesday after an order signed by President Donald Trump fell short of the sweeping restrictions expected and left out copper input materials such as ores, concentrates and cathodes. Sign up here. Grupo Mexico had earlier said it saw the proposed tariffs as an opportunity to invest some $6 billion in expanding copper projects in Arizona run by its local subsidiary Asarco, including reopening a mothballed smelting operation. "Now with the recent developments, we're continuously evaluating if we should or we should not restart our Hayden operation," Leonardo Contreras, finance chief of Grupo Mexico's mining division told analysts in a conference call. "We will continue to monitor on how these global changes happen on a daily basis," Contreras added. The tariff was intended to promote domestic development but the United States depends on imports for nearly half of its refined copper needs, and homegrown projects often take years to get off the ground. Chile, Canada and Mexico are currently its main suppliers, though China buys the bulk of their exports. Grupo Mexico said that although the trade war between the U.S. and China could affect global economic growth and consequently demand for copper, it maintained a "very positive" outlook for long-term copper growth in Asia. https://www.reuters.com/world/china/grupo-mexico-evaluating-us-investments-after-scaled-back-copper-tariff-2025-07-30/

2025-07-30 20:25

July 30 (Reuters) - Albemarle (ALB.N) , opens new tab, the world's largest producer of lithium for rechargeable batteries, posted a surprise second-quarter profit on Wednesday, helped by rising demand for the metal. Shares of the company rose 5.6% after the bell. Sign up here. Lithium's use in electric vehicles, large-scale battery storage and other electronic applications has grown rapidly, with demand up 24% last year and likely to grow 12% annually for the next decade, according to data from consultancy Fastmarkets. However, prices have fallen more than 90% in the past two years due in part to oversupply in China, fueling layoffs, corporate buyouts and project delays across the globe. The Charlotte, North Carolina-based company reported an adjusted profit of 11 cents per share, compared with analysts' expectations of 82 cents loss per share, according to data compiled by LSEG. https://www.reuters.com/business/energy/albemarle-posts-surprise-second-quarter-profit-2025-07-30/

2025-07-30 20:21

Tariffs imposed over prosecution of Bolsonaro Over half of Brazilian exports have 50% tariff from August 6 Aircraft, energy and others on lower tariff SAO PAULO/BRASILIA, July 30 (Reuters) - U.S. President Donald Trump on Wednesday slapped a 50% tariff on most Brazilian goods to fight what he has called a "witch hunt" against former President Jair Bolsonaro, but softened the blow by excluding sectors such as aircraft, energy and orange juice from heavier levies. Trump announced the tariffs, some of the steepest levied on any economy in the U.S. trade war, as his administration also unveiled sanctions on the Brazilian supreme court justice who has been overseeing Bolsonaro's trial on charges of plotting a coup. Sign up here. "Alexandre de Moraes has taken it upon himself to be judge and jury in an unlawful witch hunt against U.S. and Brazilian citizens and companies," Treasury Secretary Scott Bessent said in a statement. Bessent said Moraes "is responsible for an oppressive campaign of censorship, arbitrary detentions that violate human rights, and politicized prosecutions — including against former President Jair Bolsonaro." Last week, the Brazilian justice levied search warrants and restraining orders against Bolsonaro over allegations he courted Trump's interference in his criminal case, in which he is accused of plotting to stop President Luiz Inacio Lula da Silva from taking office in 2023. Trump's final tariff order and the sanctions followed weeks of sparring with Lula, who has likened the U.S. president, a close ideological ally of Bolsonaro's, to an unwanted "emperor." On Wednesday, Lula and his government closed ranks behind Moraes, calling the U.S. sanctions "unacceptable." "The Brazilian government considers the use of political arguments to defend the trade measures announced by the U.S. government against Brazilian exports to be unjustifiable," it said in a statement. Lula added that Brazil was willing to negotiate trade with the U.S., but that it would not give up on the tools it had at hand to defend itself, hinting that retaliation was possible. Still, Trump's tariff order threatened that if Brazil were to retaliate, the U.S. would also up the ante. DIPLOMACY AT WORK Despite Trump's effort to use the tariffs to alter the trajectory of a pivotal criminal trial, the range of exemptions came as a relief for many in Brasilia, who since Trump announced the tariff earlier this month had been urging protections for major exporters caught in the crossfire. "We're not facing the worst-case scenario," Brazilian Treasury Secretary Rogerio Ceron told reporters. The new tariffs will go into effect on August 6, not on Friday as Trump announced originally. Trump's executive order formalizing a 50% tariff excluded dozens of key Brazilian exports to the United States, including civil aircraft, pig iron, precious metals, wood pulp, energy and fertilizers. Planemaker Embraer (EMBR3.SA) , opens new tab, whose chief executive has met with officials in Washington and U.S. clients in recent days to plead its case for relief, said an initial review indicated that a 10% tariff imposed by Trump in April remains in place, with the exclusion applying to the additional 40%. The exceptions are likely a response to concerns from U.S. companies, rather than a step back from Trump's efforts to influence Brazilian politics, said Rafael Favetti, a partner at political consultancy Fatto Inteligencia Politica in Brasilia. "This also shows that Brazilian diplomacy did its work correctly by working to raise awareness among U.S. companies," he said. Brazil's minister of foreign affairs, Mauro Vieira, said he met with U.S. Secretary of State Marco Rubio on Wednesday to express the nation's willingness to discuss tariffs after negotiations stalled in June, though he stressed Bolsonaro's legal troubles were not up for debate. It remains unclear what Brazilian authorities "are bringing to the negotiating table to, for instance, open the domestic market," Goldman Sachs said in a note to clients. IMPACT SMALLER THAN EXPECTED The effective tariff rate on Brazilian shipments to the U.S. should be around 30.8%, lower than previously expected due to the exemptions, according to Goldman. Oil shipments to the U.S., which had been suspended, are set to restart after being spared, lobby group IBP said. Meanwhile, mining lobby Ibram said the exemptions covered 75% of mining exports. However, it was still too soon to celebrate, said former Brazilian trade secretary Welber Barral, estimating that Brazil exports some 3,000 different products to the United States. "There will be an impact," Barral said. Trump's tariff exemptions did not shield two of Brazil's key exports to the U.S., beef and coffee. Meatpackers expect to log $1 billion in losses in the second half of the year on the new tariffs, lobby group Abiec, which represents beef producers including JBS and Marfrig (MRFG3.SA) , opens new tab, said. Coffee exporters will also continue to push for exemptions, they said in a statement. The government said it was readying measures to protect Brazil's businesses and workers. If Brazil were to retaliate against Trump's measures, that "would generate a larger negative impact" on activity and inflation, Goldman said. "The political inclination may be to retaliate, but exporters and business associations have been urging the Brazilian administration to engage, negotiate and de-escalate." https://www.reuters.com/world/americas/trump-hits-brazil-with-tariffs-sanctions-key-sectors-excluded-2025-07-30/

2025-07-30 20:05

July 30 (Reuters) - More than 90 state and local governments have been targeted using the recently revealed vulnerability in Microsoft server software, according to a U.S. group devoted to helping local authorities collaborate against hacking threats. The nonprofit Center for Internet Security, which houses an information-sharing group for state, local, tribal, and territorial government entities, provided no further details about the targets, but said it did not have evidence that the hackers had broken through. Sign up here. "None have resulted in confirmed security incidents," Randy Rose, the center's vice president of security operations and intelligence, said in an email. A wave of hacks hit servers running vulnerable versions of Microsoft SharePoint this month, causing widespread concern. The campaign has claimed at least 400 victims, according to Netherlands-based cybersecurity firm Eye Security. Multiple federal government agencies are reportedly among the victims, and new ones are being identified every day. On Wednesday, a spokesperson for one of the U.S. Department of Energy's 17 national labs said it was among those hit. "Attackers did attempt to access Fermilab's SharePoint servers," the spokesperson said, referring to the U.S. Fermi National Accelerator Laboratory. "The attackers were quickly identified, and the impact was minimal, with no sensitive or classified data accessed." The Fermilab incident was first reported by Bloomberg. The U.S. Department of Energy has previously said the SharePoint security hack has affected "a very small number" of its systems https://www.reuters.com/technology/more-than-90-state-local-governments-targeted-using-microsoft-sharepoint-2025-07-29/

2025-07-30 19:32

Fed leaves rates unchanged, with two governors dissenting Euro on track for first monthly drop since December 2024 US GDP growth beat expectations Yen firms as investors await BOJ meeting Dollar rises against franc, yen and euro NEW YORK, July 30 (Reuters) - The dollar strengthened against major peers on Wednesday after the Federal Reserve left U.S. interest rates unchanged, in line with market expectations but rebuffing pressure from President Donald Trump. The Federal Open Market Committee voted 9-2 to keep its benchmark overnight interest rate steady in the 4.25%-4.50% range for the fifth consecutive meeting. Sign up here. Both Vice Chair for Supervision Michelle Bowman and Governor Christopher Waller, who were appointed by Trump, dissented, preferring to lower rates by 25 basis points. In his subsequent press briefing, Fed Chair Jerome Powell said he is expecting a slow process when it comes to understanding how trade tariffs impact inflation. "The Fed's decision to hold rates steady came as no surprise, though markets took note of two dissenting votes in favor of a cut," said Uto Shinohara, senior investment strategist at Mesirow Currency Management in Chicago. "The dollar remained well-supported following this morning’s stronger data and the Fed announcement, with the market pricing the September meeting as a coin-flip," Shinohara added. Earlier in the session, data showed that U.S. economic growth rebounded more than expected in the second quarter, expanding by 3% compared with an estimate of 2.4% based on a Reuters poll of economists. The euro extended losses against the dollar following the Fed's decision and as Powell spoke. It was last down 1% to $1.141775, on track for the fifth straight session of losses and trading at its lowest level since June 11. The euro is also poised to record its first monthly drop in 2025, following a sharp reaction to a U.S.-European Union trade deal earlier this week. The dollar index added to its gains after the Fed. It was up 0.96% at 99.82, hitting its highest level since May 29 and on course to post its first month of gains this year. U.S. Treasury yields were mostly higher. The 2-year note yield, which typically moves in step with interest rate expectations for the Fed, rose 6.6 basis points to 3.941%. "I think people are reading too much into the GDP numbers; nobody in markets should think GDP was that weak in Q1 and that strong in Q2 even though the big drivers were inventories and net exports," said Steve Englander, head of global G10 FX Research at Standard Chartered in New York. "I will add the two quarters together and they averaged about 1.5% GDP growth per quarter, which is not a recession but qualifies as mediocre." Trade agreements struck with Japan last week and the EU over the weekend signalled a renewed U.S. commitment to global engagement, easing investor concerns. Investors' focus is now on negotiations between China and the U.S. after officials agreed to seek an extension of their 90-day tariff truce. But Trump upped the ante against India and Brazil on Wednesday. He announced that a 25% tariff on U.S. imports of Indian goods, starting on August 1 and signed an executive order implementing an additional 40% tariff on Brazil, bringing the total tariff amount to 50%. Data showed on Wednesday that the German economy contracted in the second quarter, while France's economy beat forecasts. The spotlight will be on comments from BoJ Governor Kazuo Ueda as investors hope the trade deal between Japan and the U.S. paves the way for the central bank to raise rates on Thursday. The dollar was 0.55% firmer to 149.29 against the yen , after hitting its highest since April 2. Against the Swiss franc , the dollar strengthened 0.82% to 0.81265 francs, reaching its highest since June 23. https://www.reuters.com/world/middle-east/dollar-gains-against-peers-after-fed-leaves-rates-unchanged-2025-07-30/