2025-07-25 11:52
Sentiment boosted by US-Japan trade deal Markets pause ahead of next week's Fed, BOJ policy meetings Focus on US-EU trade negotiations Markets shrug off Trump's Fed visit Pound weakens on euro and dollar after soft economic data SINGAPORE/LONDON, July 25 (Reuters) - The dollar index steadied but was set for its biggest weekly drop in a month on Friday as investors contended with tariff negotiations and central bank meetings next week, while sterling dipped after softer-than-expected British retail sales data. Both the U.S. Federal Reserve and the Bank of Japan are expected to hold rates steady at next week's policy meetings, but traders are focusing on the subsequent comments to gauge the timing of the next move. Sign up here. Politics is a factor for both central banks, most dramatically in the U.S., where President Donald Trump once again pressed the case for lower interest rates on Thursday as he locked horns with Fed Chair Jerome Powell. The dollar managed to recover a touch against the euro late on Thursday, however, after Trump said he did not intend to fire Powell, as he has frequently suggested he could. "The market relief was based on the fact that Trump refrained from calling for Powell to go, although that was based on Trump's view that Powell would 'do the right thing'," said Derek Halpenny, head of EMEA research at MUFG. He added, however, that "the theme of Fed independence being undermined by the White House will unlikely go away and remains a downside risk for the dollar". Falls against the euro and yen leave the dollar index , which measures the dollar against six other currencies, at 97.45, on track for a drop of 0.75% this week, its weakest performance in a month, though it bounced back 0.3% on Friday. Meanwhile, in Japan, though the trade deal signed with the U.S. this week could make it easier for the BOJ to continue rate hikes, the bruising loss for Prime Minister Shigeru Ishiba's coalition in upper house elections on Sunday complicates life for the BOJ. Prospects of big spending could keep Japanese inflation elevated, suggesting swifter tightening, while potentially prolonged political paralysis and a global trade war provide compelling reasons to go slow on rate hikes. On the day, the yen was softer, thanks in part to below-expectations Tokyo inflation data, with the dollar last up 0.55% at 147.8 yen, though on course for a weekly 0.7% fall. The euro was down 0.2% at $1.1721 but set for a weekly gain of 0.8%. CROSS-CHANNEL DIVERGENCE The common currency took some support Thursday from the European Central Bank meeting. Policymakers left the policy rate at 2%, as expected, but the bank's relatively upbeat assessment of the economic outlook and signs that an EU-U.S. trade deal is near caused investors to reassess previous assumptions of one more rate cut this year. "While a renewed deterioration on the trade front, or a more marked near-term fall in inflation, could still prompt the ECB to cut again, there appears to be a strong bias to keep policy on hold," said Paul Hollingsworth, head of developed markets economics, BNP Paribas Markets 360. "We think the (easing) cycle is over." In contrast, soft British data is supporting expectations of more Bank of England rate cuts, and causing euro zone bond yields to rise faster than British ones, supporting the euro against the pound. The euro rose as much as 0.23% on sterling to 87.27 pence on Friday, its highest since April, building on a 0.44% gain the previous day. Data on Friday showed British retail sales data for June slightly below analysts' expectations, albeit rebounding from a sharp drop in May, after figures on Thursday showed business activity grew only weakly in July and employers cut jobs at the fastest pace in five months. The pound was down 0.5% on the dollar at $1.3445. https://www.reuters.com/world/middle-east/dollar-steadies-set-weekly-drop-focus-shifts-fed-boj-meetings-2025-07-25/
2025-07-25 11:34
July 25 (Reuters) - Refiner Phillips 66 (PSX.N) , opens new tab beat Wall Street estimates for second-quarter profit on Friday, helped by higher refining margins and lower turnaround expenses. Shares of Phillips 66 were up around 0.8% at 2 p.m. EDT. Sign up here. Top U.S. refiners were expected to post higher second-quarter profit, rebounding from losses in the prior quarter as stronger-than-expected diesel margins lifted earnings. The improved margins helped peers such as Valero Energy (VLO.N) , opens new tab exceed Wall Street estimates. "Earnings beat on stronger refining results from lower opex and retail results from higher U.S. margins," TD Cowen analyst Jason Gabelman said in a note. The refiner's realized margin per barrel rose 12.4% to $11.25 in the quarter from a year ago, while turnaround expenses fell 47% at $53 million. Its crude capacity utilization was 98%, while adjusted earnings from its refining segment rose about 30% at $392 million. Some analysts flagged concerns about heavy debt. The refiner's net debt to capital ratio for the second quarter was 41%, compared to rival Valero's 12%. "Concerns about leverage, as it expands midstream capabilities, remain," said Stewart Glickman, energy equity analyst at CFRA Research. The results come after a board fight in May, where Phillips 66 and activist investor Elliott Investment Management each won two board seats at an annual shareholders meeting. As part of its argument for actions to boost share price, Elliott had advocated exploring the sale or spin-off of its midstream business and other asset divestments, to focus on the company's refining operations. "We will engage with industry experts to make sure that we're thinking about it the right way and certainly we'll lay it out all out for our board to drive to the right conclusions," CEO of Phillips 66, Mark Lashier told analysts during the company's earnings call on Friday. Earlier this year, the refiner reported a bigger-than-expected loss for the first quarter, hurt by lower refining margins amid heavy turnaround activities in the U.S. refining sector. In the second quarter, the refiner's quarterly adjusted earnings for its midstream segment were down about 3% at $731 million from a year ago. The company reported an adjusted profit of $2.38 per share for the second quarter, compared with analysts' average estimate of $1.71, according to data compiled by LSEG. https://www.reuters.com/sustainability/sustainable-finance-reporting/phillips-66-profit-beats-estimates-higher-refining-margins-2025-07-25/
2025-07-25 11:34
DUBAI, July 25 (Reuters) - Iran's Deputy Foreign Minister Kazem Gharibabadi said on Friday that Tehran held a "serious, frank, and detailed" discussion with European powers about sanctions relief and the nuclear issue, in which both sides presented specific ideas. He added that Iran reiterated its principled positions, including on the snapback sanctions mechanism, and that it was agreed that consultations on the matter would continue. Sign up here. https://www.reuters.com/business/energy/irans-gharibabadi-held-serious-talks-with-europeans-consultations-continue-2025-06-25/
2025-07-25 11:28
Latest EU sanctions on Russia targeted Indian refiner Nayara New Nayara CEO has been with company since 2017 Some ships have diverted from Nayara's port since sanctions India is biggest buyer of seaborne Russian crude NEW DELHI, July 25 (Reuters) - Russia-backed Indian refiner Nayara Energy has named a new chief executive after its previous CEO resigned following European Union sanctions that targeted the company, four sources with knowledge of the matter said on Friday. The reshuffle at the top is the latest disruption for the company since the EU announced a new round of sanctions last Friday directed at Russia over its war in Ukraine. Sign up here. This week, a tanker carrying Russian Urals crude was diverted away from Nayara's Vadinar port to unload its cargo at another port in western India, Reuters reported. That came after two other tankers skipped loading refined products from Vadinar, Reuters reported. Mumbai-based Nayara has appointed company veteran Sergey Denisov as chief executive to replace Alessandro des Dorides, the sources said. Denisov's appointment was decided at a board meeting on Wednesday, they said. Nayara Energy did not immediately respond to a request for comment. Des Dorides, who joined Nayara Energy in April 2024, did not immediately respond to a message sent on LinkedIn. In its announcement of his appointment last year, Nayara described Des Dorides as a 24-year veteran of the energy industry. He left Italian major Eni in 2019 after about six months as head of oil trading and operations. Denisov has been with Nayara since 2017. His LinkedIn profile describes him as Nayara's chief development officer. In recent days, Nayara's website has no longer carried pages listing its leadership. The company is one of India's two major private-sector refiners, along with the larger Reliance Industries (RELI.NS) , opens new tab. The pair have been India's biggest buyers of discounted Russian crude. Nayara, which operates India's third-biggest refinery, typically exports at least four million barrels of refined products per month, including diesel, jet fuel, gasoline and naphtha. It has been accelerating sales domestically, and operates more than 6,000 fuel stations. Nayara Energy has criticised the EU's "unjust and unilateral" decision to impose sanctions. Russia's Rosneft holds a 49.13% stake in Nayara and a similar stake is owned by a consortium, Kesani Enterprises Co Ltd, led by Italy's Mareterra Group and Russian investment group United Capital Partners, according to a 2024 note by India's CARE Ratings agency. India, which has become the top importer of seaborne Russian oil in the aftermath of Moscow's Ukraine invasion, has also criticised the EU's sanctions. Rosneft, which said the sanctions on Nayara were unjustified and illegal, did not immediately respond to a request for comment. https://www.reuters.com/sustainability/boards-policy-regulation/ceo-russia-backed-indian-refiner-nayara-resigns-after-eu-sanctions-sources-say-2025-07-25/
2025-07-25 11:19
LONDON, July 25 (Reuters) - The International Monetary Fund said Britain's government risked being knocked off course for meeting its targets to repair the public finances and it urged finance minister Rachel Reeves to give herself more leeway through tax or spending measures. In a final version of an annual report on Britain's economy, the IMF said changes introduced by Reeves to the government's deficit reduction plans had enhanced the credibility and effectiveness of fiscal policy. Sign up here. "Risks to this strategy must be carefully managed. In an uncertain global environment and with limited fiscal headroom, fiscal rules could easily be breached if growth disappoints or interest rate shocks materialize," the IMF said. The Fund also said the risk of overly-frequent changes to tax and spending policy could be reduced by changes including the creation of more fiscal room for manoeuvre by Reeves to meet her targets. "The first best (option) would be to maintain more headroom under the rules, so that small changes in the outlook do not compromise assessments of rule compliance," it said. In response to the report, Reeves said in a statement that the Fund had backed her choices for Britain's economy to recover and that her plans would "tackle the deep-rooted economic challenges that we inherited in the face of global headwinds." Reeves is under pressure to raise taxes later this year to remain on course to meet her budget targets, having already increased social security contributions paid by employers and along with revenue-raising measures in late 2024. https://www.reuters.com/world/uk/imf-sees-risk-that-uk-is-knocked-off-course-fix-public-finances-2025-07-25/
2025-07-25 11:16
July 25 (Reuters) - Futures tied to Canada’s main stock index slipped on Friday, mirroring global markets, as investors awaited trade developments ahead of President Donald Trump’s tariff deadline next week. Futures on the S&P/TSX index were down 0.2% at 1,625.4 points by 06:55 a.m. ET (1055 GMT). Sign up here. Canada' main stock index edged lower on Thursday but was holding close to a record high. Global equities fell on Friday as investors booked profits ahead of a critical week that includes the August 1 tariff deadline. Markets are watching closely, hoping the United States will hold off on imposing steep import levies. This week, sentiment was buoyed by U.S. trade agreements with Japan, Indonesia, and the Philippines. Meanwhile, negotiations continue with the European Union and South Korea, where hopes for additional deals remain. In commodities, gold prices slipped and copper eased, and oil prices were stable on Friday. Looking ahead, investor focus will shift to several key events next week, including policy decisions from the Bank of Canada and the U.S. Federal Reserve, as well as earnings reports from several of the so-called “Magnificent Seven” tech companies. FOR CANADIAN MARKETS NEWS, CLICK ON CODES: TSX market report Canadian dollar and bonds report CA/ Reuters global stocks poll for Canada , Canadian markets directory ($1= C${CAD=;PRIMACT_1}) https://www.reuters.com/markets/europe/tsx-futures-slip-investors-await-tariff-deadline-trade-updates-2025-07-25/
