2025-07-29 19:31

Brent, WTI hit highest since June 20 US to start impose tariffs and other measures on Russia ten days from today, Trump says China could face high tariffs if Beijing continued its Russian oil purchases US crude stockpiles rose by 1.54 million barrels last week - API NEW YORK, July 29 (Reuters) - Oil prices gained more than 3% on Tuesday as President Donald Trump ramped up pressure on Russia over its war in Ukraine and on optimism that a trade war between the U.S. and its major trading partners was abating. Brent crude futures settled $2.47, or 3.53%, higher at $72.51 a barrel while U.S. West Texas Intermediate crude gained $2.50, or 3.75%, to settle at $69.21. Both contracts settled at their highest since June 20. Sign up here. On Tuesday, Trump said he would start imposing tariffs and other measures on Russia "10 days from today" if Moscow did not make progress toward ending the war in Ukraine. "We've amped it up. We have a hard deadline of 10 days," said Phil Flynn, senior analyst with Price Futures Group. "And there's a suggestion that other countries are going to join us." Also on Tuesday, U.S. Treasury Secretary Scott Bessent said he had told Chinese officials that, given U.S. secondary tariff legislation on sanctioned Russian oil, China could face high tariffs if Beijing continued its Russian oil purchases. Bessent was speaking after two days of bilateral talks aimed at resolving longstanding economic disputes and stepping back from an escalating trade war between the world's two biggest economies. Also supporting oil prices, the trade agreement between the U.S. and the European Union, while imposing a 15% import tariff on most EU goods, sidestepped a full-blown trade war between the two major allies that would have rippled across nearly a third of global trade and dimmed the outlook for fuel demand. "There is definitely some optimism around the trade deals," said Bob Yawger, director of energy futures at Mizuho. "It's not perfect, especially for the Europeans, but it is better than it could have been by a long shot." The agreement also calls for $750 billion of EU purchases of U.S. energy over the next three years, which analysts say the bloc has virtually no chance of meeting, while European companies are to invest $600 billion in the U.S. over Trump's term. In the U.S., crude stockpiles rose by 1.54 million barrels last week, market sources said, citing American Petroleum Institute figures on Tuesday. U.S. Energy Information Administration is due to release weekly inventory data on Wednesday. Market participants also await the outcome of the U.S. Federal Reserve policy meeting on Tuesday and Wednesday. The Fed is widely expected to hold rates steady but could signal a dovish tilt due to signs of cooling inflation, said Priyanka Sachdeva, senior market analyst at brokerage Phillip Nova. https://www.reuters.com/business/energy/oil-prices-rally-us-pressure-russia-trade-deal-optimism-2025-07-29/

2025-07-29 19:22

BRASILIA, July 29 (Reuters) - Brazil is planning relief measures for companies impacted heavily by steeper U.S. tariffs set to take effect in August, Finance Minister Fernando Haddad said on Tuesday. Speaking to CNN Brasil, Haddad said the plan, which will be reviewed by President Luiz Inacio Lula da Silva, includes steps to ensure companies have the confidence to maintain their investments. Sign up here. He denied, however, that the plan includes tax exemptions for the affected companies. Earlier on Tuesday, Ports and Airports Minister Silvio Costa Filho said the government would support planemaker Embraer (EMBR3.SA) , opens new tab, citing a potential additional credit line for the company. Crude oil, coffee, orange juice, beef, and aircraft - mainly from Embraer - are among Brazil's top exports to the United States. Haddad said the government still lacks clarity on what exactly will come from the U.S. starting on August 1, the date U.S. President Donald Trump has set to hike tariffs on Brazilian imports to the U.S. to 50% from the current 10%. The minister said Brazil could see a positive surprise in food inflation due to the tariffs' impact on sectors such as beef and fruit, noting that domestic prices appear to be falling as a result of increased supply in the local market. Haddad also said Latin America's largest economy cannot make the "symmetrical mistake" of retaliating in the same areas targeted by the U.S. tariffs, which he said would amount to responding in kind and ultimately punishing Brazilian consumers. "I cannot anticipate decisions that have not been made," he said, when asked whether taxing big tech companies was among the retaliation measures under consideration. https://www.reuters.com/business/aerospace-defense/brazil-is-planning-relief-measures-firms-hit-by-us-tariffs-says-minister-2025-07-29/

2025-07-29 19:14

BRASILIA, July 29 (Reuters) - Brazil's government has asked the U.S. to exclude food products and Embraer's (EMBR3.SA) , opens new tab aircraft from the 50% tariff it plans to impose on Brazilian goods starting August 1, a source familiar with the matter told Reuters on Tuesday. The request was the main topic of recent discussions between Brazilian and U.S. officials, the source said, including three calls between Brazil's Vice President and Trade Minister Geraldo Alckmin and U.S. Commerce Secretary Howard Lutnick in recent days. Sign up here. Newspaper Folha de S.Paulo first reported the request on Monday. The press office of Brazil's Development and Trade Ministry, which is headed by Alckmin, denied the report, saying the government is working to suspend the tariffs across all sectors. But a Brazilian official, speaking on condition of anonymity to discuss the sensitive topic, acknowledged that the government had some priorities that it could not make public because of a confidentiality clause in the negotiations. It also wants to avoid the perception that it is trading off some sectors for others, the source said. But the same person added that some sectors needed to be prioritized in the talks due to the severity of the impact in certain areas. Embraer, the world's No. 3 planemaker after Airbus (AIR.PA) , opens new tab and Boeing (BA.N) , opens new tab, is currently the government's top concern, with dozens of pending deliveries to U.S. airlines. It has said a 50% tariff could trigger order cancellations, deferred deliveries and job cuts, hammering its revenue like the pandemic did. Ports and Airports Minister Silvio Costa Filho said the government would do "everything within its power to help Embraer," hinting at potentially providing the planemaker with credit lines. In addition to aircraft, the U.S. is also a large buyer of Brazilian food products, such as coffee and orange juice. Trump's tariff plans could devastate Brazil's citrus belt, where factories are already scaling back production and orange farmers are considering leaving fruit to rot due to low prices. Tariffs could also effectively halt the flow of Brazilian coffee to the U.S. https://www.reuters.com/business/autos-transportation/brazil-asks-us-spare-food-products-embraer-planes-50-tariff-source-says-2025-07-29/

2025-07-29 19:08

WASHINGTON, July 29 (Reuters) - Union Pacific's (UNP.N) , opens new tabproposed purchase of smaller rival rail operator Norfolk Southern (NSC.N) , opens new tab will need to be approved by the Surface Transportation Board in Washington, an independent federal agency that oversees competition and other areas of importance in the rail industry. The $85 billion deal announced on Tuesday would create the nation's first coast-to-coast freight rail operator and reshape the movement of goods from grains to autos across the U.S., which are issues of focus for the board. Sign up here. Below are details of the board and what it will examine for the Union Pacific deal. What is the Surface Transportation Board? Created in 1996, the agency reviews railroad mergers, rates, service issues and big construction projects. It replaced the Interstate Commerce Commission, which was established in 1887. STB chairman Patrick Fuchs has said he wants the agency to update the board's regulatory framework to improve competition and reduce regulatory barriers. The board rarely rejects mergers outright, but in 2021 it rejected Canadian National's (CNR.TO) , opens new tab plan to place Kansas City Southern in a temporary "voting trust" that would have allowed Kansas City Southern shareholders to receive the deal's consideration without having to wait for full regulatory approval. That, and a higher bid from another Canadian railroad, helped end Canadian National's bid. What is the process for a railroad merger? Approval could easily take a year or more. Applicants first file a notice saying they intend to apply for a merger approval. The application for the merger is then filed three to six months after that. The STB then will decide if it is complete or not, before opening for public comments and responses for 90 days. It could then spend another year, hold a hearing, and get rebuttals and additional filings. Once the evidence is closed, the board will typically take another 90 days to issue a written opinion that generally includes an oversight period. The Attorney General also has authority to weigh in on large railroad mergers, giving the Justice Department a potential say in the merger. What does the board usually recommend for a rail merger? The STB's approval of the acquisition of Kansas City Southern Railway Company by Canadian Pacific Railway Limited came after a seven-day hearing and included an unprecedented seven-year oversight period and contained many conditions to address environmental impacts, preserve competition, protect railroad workers, and promote efficient passenger rail. What factors will the Board look at for the Union Pacific deal? The deal is the first to be considered under rules adopted in 2001 that will "substantially increase the burden on applicants to demonstrate that a proposed transaction would be in the public interest," and would require them to show how the deal will increase competition in key areas. The board will also look at how shippers of products view the deal and its impact on unions. The largest U.S. rail union, the International Association of Sheet Metal, Air, Rail and Transportation Workers, said it intends to oppose the Union Pacific deal in proceedings before the Surface Transportation Board on Tuesday. It fears the deal could reduce worker safety and job security, and downgrade service quality. https://www.reuters.com/sustainability/boards-policy-regulation/union-pacific-deal-buy-us-rail-rival-faces-lengthy-review-2025-07-29/

2025-07-29 18:47

Q2 copper production down, byproducts rise Analysts praise lower mining costs US copper tariffs a growth opportunity, group says Shares up in midday trading MEXICO CITY, July 29 (Reuters) - Mining and transportation conglomerate Grupo Mexico reported net profit rose 10% in the second quarter, helped by lower mining costs and a good performance from its copper byproducts business even as copper production edged down. Net profit for the group, a leading copper producer, came in at $1.23 billion from revenues that fell 4% to $4.24 billion, according to a filing dated late Monday, the latter above a $4.22 billion estimate of analysts polled by LSEG. Sign up here. Earnings before interest, taxes, depreciation, and amortization for the three months through end June rose 1.4% to $2.36 billion. Analysts polled by LSEG had expected EBITDA to land at $2.22 billion. Grupo Mexico, controlled by billionaire German Larrea, ranks among the world's largest copper producers by volume. At midday in Mexico City, its shares were trading up 1.3%. It maintained forecasts for an expected annual output of 1.08 million metric tons of copper, as output of the red metal over the quarter reached 267,325 tons, 1.3% less than the same period a year earlier, due to lower output at its Buenavista mine in Mexico's northern Sonora state. Although copper sales fell 2.9% from a year earlier, sales of molybdenum - a metal used to strengthen steel and speed petroleum refining - along with zinc and silver, rose. The mining division's cash cost for its primary metal, meanwhile, fell 10% from a year earlier, hitting $0.93 per pound of copper versus an average price of $4.55 per pound. Analysts at JPMorgan pointed to "a strategic decision to prioritize zinc and silver production at Buenavista Zinc, impacting copper production," and noted that Grupo Mexico had touted "the lowest cash costs in the copper industry, benefiting from higher byproduct credits." Byproduct credits refer to revenue generated from secondary metals extracted alongside a miner's main product. Santander analysts highlighted the lower metal extraction costs net of byproducts. "Grupo Mexico's balance sheet remains strong," they said. 'OPPORTUNITY TO INVEST' Earlier this month, U.S. President Donald Trump announced a 50% tariff on copper shipments starting August 1 in a bid to promote domestic development. The U.S., however, 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. "There is an opportunity to invest up to $6.2 billion in the reopening and expansion of projects that align with the new mining and industrial policies of President Trump's administration," Grupo Mexico said in a report. It said it could expand production at its Ray and Silver Bell copper mines as well as reopen its Hayden smelter, all run by U.S. subsidiary Asarco, in Arizona. These proposals follow years of negotiations with local unionized workers. Construction of Grupo Mexico's Tia Maria project in southern Peru is progressing as planned, it added, and should launch in 2027. Sales at Grupo Mexico's transport division slid due largely to foreign exchange effects, the firm said, while its infrastructure arm was hit by the suspension of four platform projects on the part of state oil producer Pemex (PEMX.UL). https://www.reuters.com/world/americas/mining-giant-grupo-mexico-reports-profit-bump-copper-costs-shrink-2025-07-29/

2025-07-29 18:11

Euro poised for first monthly loss against dollar US-EU trade deal criticized by some euro zone leaders US and China agree to extend tariff truce Dollar index set for first month of gains this year NEW YORK, July 29 (Reuters) - The dollar hit a one-month high versus the euro on Tuesday in the wake of a string of trade agreements between the United States and its major trade partners, while markets await interest rate decisions from the Federal Reserve and the Bank of Japan. U.S. President Donald Trump struck his biggest trade deal yet with the European Union on Sunday, which imposes a 15% import tariff on most EU goods and includes $600 billion of EU investments into the United States. It tops a $550 billion deal signed with Japan last week that includes a 15% reciprocal tariff. Sign up here. U.S. and Chinese officials finished two days of talks in Stockholm on Tuesday. While there were no signs of breakthroughs, both sides agreed to extend a 90-day tariff truce struck in mid-May, China's top trade negotiator, Li Chenggang, said. The euro was down 0.39% against the dollar at $1.154775, hitting its lowest level since June 23. The single currency had dropped 1.29% in the previous session, its steepest one-day decline since mid-May. The euro is poised to record its first monthly loss against the dollar this year. "After falling sharply in the first half of the year, the dollar began July with a bounce, and I think it's mostly short covering. And the issue is whether this is a trend change or an overdue technical correction," said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, rose 0.30% to 98.91, hitting its highest level since June 23. The index is set to record its first month of gains this year. "The market had a sigh of relief that the tariffs, at the least the plan announced with Japan and the EU and the likely 90-day extension with China, helped remove downside tail risk," Chandler said. Several EU leaders have criticized the trade agreement reached with the United States. German Chancellor Friedrich Merz said his country would suffer significant damage due to the agreed tariffs. France's prime minister on Monday called the agreement a "dark day" for Europe. Markets anticipate that the Fed will leave interest rates unchanged at the end of its two-day monetary policy meeting on Wednesday. U.S. Treasuries slipped on Tuesday, with the yield on benchmark U.S. 10-year notes falling 8.6 basis points to 4.334%. "Ahead of (Wednesday's) Fed decision, we might get some consolidation. People are concerned about a possible dissent from at least one of the governors, maybe it's Waller or Bowman," Chandler added. Christopher Waller earlier this month said he believed the U.S. central bank should cut rates at its July meeting. Michelle Bowman, who is now the central bank's top bank overseer, in June said she was open to cutting rates at this month's meeting. The Bank of Japan also is likely to hold off raising interest rates on Thursday after the Japanese trade agreement with the United States last week. The dollar was down 0.05% to 148.465 against the Japanese yen . Against the Swiss franc , the dollar strengthened 0.28% to 0.806 franc. "We expect the next leg of the Dollar weaker move to come from monetary policy rather than trade uncertainty," Goldman Sachs analysts led by Isabella Rosenberg wrote in an investor note. "The latest trade deal announcements and limited evidence of tariff passthrough to prices have lowered inflation uncertainty and put downward pressure on implied vol." https://www.reuters.com/world/middle-east/dollar-reaches-one-month-high-versus-euro-trade-deal-optimism-fed-view-2025-07-29/