2025-07-25 08:53

Kia aims to increase U.S. market share to over 6%, from 5.1% Kia targets sales rise of 7% in slumping U.S. market/K SEOUL, July 25 (Reuters) - South Korea's Kia Corp (000270.KS) , opens new tab said on Friday that it aims to increase its U.S. sales and market share in the second half, driven by sales of new hybrid and gasoline vehicles and as some rivals are expected to raise prices to cope with tariffs. Kia, which together with affiliate Hyundai Motor (005380.KS) , opens new tab ranks as the world's no. 3 carmaker, said its operating profit in the second quarter slumped by a quarter as it took a hit of 786 billion won ($570 million) from U.S. tariffs and warned of a bigger blow in the second half. Sign up here. Still, it increased April-June U.S. sales by 5% as consumers brought forward some car purchases due to concerns that U.S. tariffs would lead to higher vehicle prices. Kia also credited solid sales of its new Carnival hybrid sport utility vehicles for the rise. It said it aimed to increase its U.S. sales by 7% to 8% in the second half of the year even as overall auto sales in the U.S. market are expected to slump by 10%, leading to a gain in market share to over 6% from 5.1% in the first half. It expects Carnival and K4 small car sales to drive the gains while some Japanese automakers are raising prices. While Kia and Hyundai import about two-thirds sold in the U.S. market, making them more exposed to U.S. tariffs than major rivals, Kia said on Friday that it has not yet made detailed plans to raise prices, instead focusing on growing its U.S. business. "We believe that we will be able to use the difficult environment as a good opportunity to level up (our market share and sales), and that's Kia's strength," Kia chief financial officer Kim Seung-jun said during a conference call. Samsung Securities analyst Esther Yim said Kia's strategy to boost sales of hybrids, which are imported from South Korea, could weigh on its profit, but that could be in part offset by Kia's efforts to limit the impact. To mitigate tariffs' effects, Kia's South Korean factories will divert some of its shipments from the United States to other markets, such as Canada, the carmaker said. Kia also said its U.S. factory in Georgia aims to shift some electric vehicle production to other vehicles like Sportage, Sorento and Telluride, as the United States is set to end its EV subsidies at the end of September. Kia shares were down 0.9%. ($1 = 1,378.0800 won) https://www.reuters.com/business/autos-transportation/kia-aims-win-us-market-share-tariffs-force-rivals-pull-back-2025-07-25/

2025-07-25 07:44

Ukraine's army relies on thousands of Starlinks Commander says drone missions disrupted Outage lasted over two hours KYIV, July 25 (Reuters) - Starlink systems used by Ukrainian military units were down for two and a half hours overnight, a senior commander said, part of a global issue that disrupted the satellite internet provider. Ukraine's forces are heavily reliant on thousands of SpaceX's Starlink terminals for battlefield communications and some drone operations, as they have proved resistant to espionage and signal jamming throughout the three and a half years of fighting Russia's invasion. Sign up here. Starlink experienced one of its biggest international outages on Thursday when an internal software failure knocked tens of thousands of users offline. "Starlink is down across the entire front," Robert Brovdi, the commander of Ukraine's drone forces, wrote on Telegram at 10:41 p.m. (1941 GMT) on Thursday. Starlink, which has more than 6 million users across roughly 140 countries and territories, later acknowledged the global outage on its X account and said "we are actively implementing a solution." Brovdi updated his post later to say that by about 1:05 a.m. on Friday the issue had been resolved. He said the incident had highlighted the risk of reliance on the systems, and called for communication and connectivity methods to be diversified. "Combat missions were performed without a (video) feed, battlefield reconnaissance was done with strike (drones)," Brovdi wrote. A Ukrainian drone commander, speaking anonymously to discuss sensitive matters, told Reuters his unit had to postpone several combat operations as a result of the outage. Oleksandr Dmitriev, the founder of OCHI, a Ukrainian system that centralises feeds from thousands of drone crews across the frontline, told Reuters the outage showed that relying on cloud services to command units and relay battlefield drone reconnaissance was a "huge risk". "If connection to the internet is lost ... the ability to conduct combat operations is practically gone," he said, calling for a move towards local communication systems that are not reliant on the internet. Reuters reported on Friday that Starlink owner Elon Musk issued an order in 2022 to cut Starlink coverage in certain areas of Ukraine as Ukrainian forces were waging a counter-offensive to take back occupied land from Russia. As of April 2025, according to Ukrainian government social media posts, Kyiv has received more than 50,000 Starlink terminals. Although Starlink does not operate in Russia, Ukrainian officials have said that Moscow's troops are also widely using the systems on the frontlines in Ukraine. "The outage was due to failure of key internal software services that operate the core network," Starlink vice president Michael Nicolls wrote on X, apologising for the disruption and vowing to find its root cause. https://www.reuters.com/business/media-telecom/ukraine-says-starlinks-global-outage-hit-its-military-communications-2025-07-25/

2025-07-25 07:37

July 25 (Reuters) - U.S. President Donald Trump's August 1 deadline for trade partners to sign deals or face hefty tariffs is fast approaching, and investors are playing it cool. Stocks are near record highs and volatility is low, even with a Federal Reserve meeting and U.S. jobs data on the slate, while Trump's beef with central bank Chair Jerome Powell shows no signs of easing. Sign up here. Here's your weekahead from Dhara Ranasinghe, Yoruk Bahceli and Naomi Rovnick in London, Rocky Swift in Tokyo and Lewis Krauskopf in New York: 1/ WANT, NEED As Trump's August 1 deadline for countries to reach trade deals or face steep tariffs approaches, market optimism is high. The European Union over the weekend averted a trade war with a framework agreement with the U.S> for 15% tariffs, following Japan's U.S. deal. Investors sense Trump will not carry out his 30% tariff threat and Treasury Secretary Scott Bessent thinks the quality of agreements is more important than the timing. Undoubtedly, scope for disappointment remains. Any market reaction to negative headlines could easily be exacerbated by summer-thinned trading and knock world stocks off record highs. For now, investors and negotiators may hang their hopes on signs of compromise: You can't always get what you want, but if you try sometimes, you'll get what you need. 2/ FED DRAMA Mounting pressure from the White House on the Federal Reserve and Chair Jerome Powell could add drama to the U.S. central bank's upcoming meeting. Investors expect the Fed to hold interest rates steady again on Wednesday. Powell and others have been wary of easing rates too soon without more confirmation that tariffs are causing a revival of inflation. Trump has denounced Powell for not cutting rates, repeatedly calling for him to resign before his term ends in May 2026, although he has said he would not fire him. Fed Governor Christopher Waller, a possible candidate to replace Powell, has said the Fed should cut rates at the upcoming meeting. A crucial view into the economy follows with Friday's July jobs report - expected to show employment increased by 102,000, after June's 147,000 rise, according to Reuters forecasts. 3/ BACK TO RATE HIKES? The Bank of Japan has a lot to consider when it meets as a new U.S. trade deal clears some of the economic clouds, while the political scene at home becomes ever hazier. The BOJ, which concludes a two-day meeting on July 31, has seen its mission to normalise monetary policy delayed by economic and market turmoil unleashed by Trump's chaotic tariff policies. The trade pact has reduced economic uncertainty and increased the likelihood that Japan will hit the BOJ's inflation target, Deputy Governor Shinichi Uchida said. Meanwhile, speculation is growing that fiscal hawk Prime Minister Shigeru Ishiba will step down after a disastrous electoral showing, paving the way for more spendthrift policies. Economists expect the BOJ to raise its key rate by at least 25 basis points by year-end, and markets price in a better than 50% chance of a move in October. 4/ SPOTLIGHT ON EUROPE It's a jam-packed data calendar for the euro zone this week, with July flash inflation data and the first estimate of second-quarter growth on the docket on Wednesday. But neither is likely to move the needle for traders, who are laser-focused on what U.S. tariffs will look like and on how long an ECB policy pause lasts. Inflation returned to the ECB's 2% target in June, but should fall from here. The ECB sees it as low as 1.4% early next year, which has concerned some policymakers. On the growth side, traders will look for signs of tariff impact. The bloc grew a much stronger-than-expected 0.6% in the first quarter, but that reflected a spike in U.S. imports ahead of tariffs. Forward-looking business activity data offers a rosy picture, accelerating faster than forecast to an 11-month high in July. 5/ LOONIE BONDS As it puzzles over the outlook for a tariff-distorted economy that is making bond investors edgy, the Bank of Canada is widely expected to keep interest rates on hold at 2.75% on July 30. The yield on 30-year Canadian bonds , which sets Ottawa's borrowing costs, has zoomed almost 70 bps higher since early April, as the debt underperformed even that of equally fiscally challenged Britain. Long-dated bonds present investors with most inflation risk, and while Canada's 6.9% jobless rate suggests consumer prices are unlikely to rocket, the BoC has fretted about Canada's retaliatory tariffs on U.S. goods proving inflationary. Canada's debt markets are increasingly attracting fast-money hedge funds, the BoC noted , opens new tab in May, setting them up for outsized sell-offs of the type Britain has become known for when inflation concerns spike. https://www.reuters.com/business/take-five/global-markets-themes-update-1-graphic-2025-07-25/

2025-07-25 07:15

MOSCOW, July 25 (Reuters) - Russia's Federal Anti-Monopoly Service has launched a probe into Gazprom's (GAZP.MM) , opens new tab oil product sales business, saying on Friday the company significantly cut gasoline sales on a local exchange. The case was opened as the Russian government is considering measures to reduce gasoline exports amid rising gasoline prices. Sign up here. The regulator (FAS) said Gazprom's business had reduced sales of gasoline Ai-92 and Ai-95 at the St Petersburg commodity exchange from May 20 through to June 27 from its Surgut plant by 74% and 50% respectively, citing the exchange data. "During periods of seasonal and increased demand, the FAS of Russia considers such actions to be unacceptable and contain signs of violation of antimonopoly legislation," the regulator said in a statement. Gazprom did not immediately reply to a request for comment. https://www.reuters.com/sustainability/boards-policy-regulation/russias-anti-monopoly-body-opens-case-against-gazprom-business-over-low-fuel-2025-07-25/

2025-07-25 07:00

MILAN, July 25 (Reuters) - Italian energy group Eni (ENI.MI) , opens new tab said on Friday its second-quarter earnings fell 25% year-on-year as lower oil prices and a weaker dollar overshadowed a better-than-expected performance at its gas business. Adjusted net profit came in at 1.13 billion euros ($1.33 billion) between April and June, down from 1.52 billion euros in the same period of last year, but above an analyst consensus of 0.93 billion euros compiled by the company. Sign up here. Despite an adverse economic backdrop, the state-controlled group was able to cut its leverage before lease liabilities - a measure of total debt in relation to equity - to 19% from 22% in the same period last year. Including the proceeds expected from recent asset sales, its pro-forma leverage dropped to a historical low of 10%. The group increased its annual cash benefit target - or cost-saving goal - to 3 billion euros from 2 billion euros previously, after putting in place mitigation measures for more than 1 billion euros in the months between April and June. "We believe our strong financial position, unique and differentiated strategy and ability to be flexible and agile, mean we are well positioned to navigate the current market volatility," said Eni CEO Claudio Descalzi in a statement, adding the group will continue to reward investors. The state-controlled group stuck to its 1.5 billion euro share buyback plan and dividend policy. It raised its expectation for underlying cash flow from operations (CFFO) in the full year to around 11.5 billion euros from 11 billion. It also improved its expectations for its gas and LNG division for this year and confirmed its outlook for its low-carbon units Enilive and Plenitude. ($1 = 0.8517 euros) https://www.reuters.com/business/energy/italys-eni-reports-25-drop-second-quarter-profit-cuts-debt-2025-07-25/

2025-07-25 06:58

Close to a year's rain dumped in Baoding 19,453 people evacuated, bridge and road access affected Hebei sees higher-than-average annual rainfall in recent years Beijing to brace for heaviest rainfall in recent weeks Some trains in Inner Mongolia suspended for safety BEIJING, July 25 (Reuters) - Storms in northern China have poured nearly a year's rainfall on Baoding, an industrial city on the doorstep of the capital Beijing, forcing over 19,000 people out of their homes as streets began to go under water and roads were being cut off. As much as 447.4 mm (17.6 inches) of rain fell in Yi, in the western part of Baoding, in the 24 hours to early Friday morning, and records were reset at a number of weather stations in Hebei province, which Baoding is part of. Sign up here. Official records show annual rainfall in Baoding averages above 500 mm. A total of 19,453 people from 6,171 households were evacuated, the China Meteorological Administration (CMA) said in a social media post. The forecaster did not mention where the residents were moved to, but shared a short clip showing two policemen in neon rain jackets boot-deep on a waterlogged street as rains poured down at night. The forecaster compared the amount of precipitation to the exceptional rainfall brought by a powerful typhoon in 2023, which inundated the capital Beijing with rains unseen since records began 140 years ago. Baoding's Zhuozhou, which suffered devastating floods in those rains two years ago, saw access to several bridges and roads cut off after the storms unleashed more than 190 mm of rain by Friday morning. Northern China has witnessed record-breaking rainfall in recent years, exposing densely populated cities including Beijing to flood risks. Some scientists link the higher rainfall in China's usually arid north to global warming. Hebei province recorded 640.3 mm in annual rainfall last year, 26.6% more than its decades-long average, according to CMA's 2024 climate bulletin on the province. The report said Hebei has been recording consecutive above-average annual precipitation since 2020. Last summer, Baoding, together with neighbouring cities Zhangjiakou, Langfang, Xiongan and Cangzhou had 40% more than the usual seasonal precipitation, with some localised areas within Baoding recording 80% more rains, the report showed. The intensifying rainfall forms part of the broader pattern of extreme weather across China due to the East Asian monsoon, which has caused disruptions in the world's second-largest economy. Chinese authorities are watchful of extreme rainfall and severe flooding as they challenge China's ageing flood defences, threaten to displace millions and wreak havoc on a $2.8 trillion agricultural sector. Baoding maintained a red alert for heavy rains on Friday morning, while Hebei upgraded its emergency response preparedness. About 160 km (100 miles) from Baoding, Beijing was not spared the impact. Rains were forecast to intensify, potentially accumulating to more than 50 mm over a six-hour period from Friday afternoon till Saturday morning in a number of districts, state broadcaster CCTV said. The capital is expected to see the heaviest rainfall since its flooding season began, potentially triggering flash floods, debris rushing down mountains, landslides and other secondary disasters, CCTV reported. Elsewhere in the country's north, heavy rains disrupted railway service in Inner Mongolia as authorities suspended several passenger trains passing through high-risk areas from Friday to Tuesday. https://www.reuters.com/sustainability/climate-energy/storms-dump-nearly-year-rain-northern-china-19000-evacuated-2025-07-25/