2025-07-24 10:59

BRUSSELS, July 24 (Reuters) - The European Union's expansion of solar energy is on track for its first annual downturn in more than a decade, industry data showed on Thursday, as some governments reduce subsidies for rooftop solar panels. The trend reflects shifting political priorities in Europe as some member countries have scaled back green measures or support for clean energy from budgets stretched by spending on defence and local industries. Sign up here. The EU is on track to install 64.2 gigawatts of new solar energy capacity in 2025, a 1.4% decrease compared with the 65.1GW installed last year, industry association SolarPower Europe said. The drop would mark the first time since 2015 that the growth of Europe's solar market has slowed year on year - denting an area of fast progress in Europe's shift to clean energy. Solar capacity growth soared by 51% in 2023, although last year growth had already slowed to 3%. Last month, solar generated 22% of total EU electricity, making it the EU's largest single source of power generation that month. But current deployment rates now indicate the EU will fall short, by about 27GW, of the 750GW of solar capacity which SolarPower Europe said is needed by 2030 for the EU's climate targets and plans to phase out Russian energy. The main cause of the downturn is fewer residential rooftop solar panel installations - a sector that is set to make up 15% of total new capacity this year, halving the roughly 30% share it held over 2020 to 2023. Germany and France are among the countries reducing their feed-in tariff payments for rooftop solar energy, while the Netherlands is also reducing support for households that export their excess solar power to the grid. https://www.reuters.com/sustainability/climate-energy/eu-solar-energy-rollout-declines-first-time-decade-subsidies-cut-2025-07-24/

2025-07-24 10:50

JAKARTA, July 24 (Reuters) - The United States and Indonesia are discussing joint measures to monitor and manage trade in Indonesian critical minerals that have strategic value, an Indonesian minister said on Thursday as he gave details of ongoing talks between the two countries. Indonesia is one of only a only a handful of countries to strike a deal with Washington to lower U.S. tariffs ahead of an August 1 deadline. The deal - referred to by the White House as an agreement on the negotiating framework - saw tariff rates on Indonesian products lowered to 19% from an earlier 32%. Sign up here. But chief economic minister Airlangga Hartarto told journalists that the two sides were still in discussions about how to better regulate trade in vital, dual-use commodities. "Strategic trade management is important to ensure transparency between both parties so that imports and exports of dual-function commodities with strategic value can be monitored," he said in a briefing on the agreement recently struck with the United States. Commodities considered strategic are those used in Artificial Intelligence infrastructure, data centres, aviation, and the aerospace and space flight industries, he said. "So they (the United States) want to ensure that these strategic components do not fall into the hands of certain parties, including for use in terrorism or other purposes," Airlangga said. Indonesia, an archipelago and the largest economy of Southeast Asia, has large reserves of a number of critical minerals as well as deposits of rare earth elements. It is also the world's largest producer of nickel products, the biggest exporter of tin, and a major producer of copper. Chinese companies currently dominate the processing industry for nickel and bauxite in Indonesia. Airlangga also said that negotiations were on between the two countries to lower tariffs on Indonesian commodities entering the United States, adding that the rate could be close to 0%. The lower tariff could be applied on commodities that the United States cannot produce itself, the minister said. He also added the two were discussing rules of origin and to what extent a "third party vendor" can be involved to be eligible for the lower tariff rates offered to Indonesian exports entering the U.S. market. https://www.reuters.com/world/asia-pacific/us-indonesia-discussing-strategic-management-critical-minerals-trade-minister-2025-07-24/

2025-07-24 10:42

LONDON, July 24 (Reuters) - What matters in US and global markets today By Mike Dolan , opens new tab, Editor-At-Large, Finance and Markets Sign up here. Hopes for a U.S.-Europe trade deal and signs of rebounding world business confidence are driving world stocks (.MIWD00000PUS) , opens new tab to new highs this morning, with Tesla one of the few losers after another earnings day flub. Early in the day, all eyes will be on the European Central Bank as it announces its latest policy decision. Reports of a Brussels-Washington trade deal that will halve threatened U.S. tariffs to 15% is likely to embolden the ECB to stand pat on rates even as the euro strengthens back toward $1.18 for the first time in three weeks. * U.S. trade deal reports drove European stocks (.STOXXE) , opens new tab up almost 1% to 6-week highs, with quarterly results from Deutsche Bank and BNP Paribas lifting both those stocks even as chipmaker STMicro STMPA.PA slumped 10.5% on its earnings. * Wall Street earnings updates reflected diverging fortunes within the Magnificent Seven. Tesla's stock fell by another 7% ahead of today's bell on its dour outlook, while Alphabet shares pushed higher on its cloud boost and higher AI spend. Intel and Dow are among the firms reporting later. U.S. July business confidence readings are due out later following Europe's equivalent, which showed an above-forecast private sector expansion this month. * China's yuan was one of the big movers early on Thursday, surging to its strongest level this year as China's central bank guided the currency higher and worldwide trade hopes fed expectations of a detente between Washington and Beijing. U.S. Treasury Secretary Bessent said China trade talks were in a 'good place' just as Chinese leaders met with European Union counterparts in Beijing. Today's column takes a look at U.S. financial conditions, which – despite what White House pressure might suggest – are actually the loosest they’ve been since 2021 by some measures. Today's Market Minute * U.S. President Donald Trump, a robust critic of Federal Reserve Chair Jerome Powell, will visit the central bank on Thursday, the White House said, a surprise move that escalates tension between the administration and the Fed. * Tesla Chief Executive Elon Musk said on Wednesday that U.S. government cuts in support for electric vehicle makers could lead to a "few rough quarters" for the company before a wave of revenue from self-driving software and services begins late next year. * Chinese President Xi Jinping urged top European Union officials on Thursday to "properly handle differences and frictions" as he criticised Brussels's recent trade actions against Beijing at a tense summit dominated by concerns on trade and the Ukraine war. * Exxon Mobil and Chevron's recent major acquisitions raise a provocative question: does the U.S. still need two energy titans, or might it be more efficient for the two to join forces? Read the latest from ROI energy columnist Ron Bousso. * Surging investment into Hong Kong by mainland Chinese investors is increasing market liquidity and depth. Short-term headwinds could slow this capital flood, but Emmer Capital Partners Ltd. CEO Manishi Raychaudhuri writes that market innovation and the push for diversification are likely to propel this trend over time. Chart of the day Tesla shares sank nearly 7% in premarket trading on Thursday as the EV giant grapples with sinking sales and mounting doubts over its future under CEO Elon Musk, deepening investor anxiety after another shaky quarter. Musk warned of a "few rough quarters" ahead for Tesla, as cuts in the Trump administration's EV incentives compound its challenges. The automaker reported one of its most difficult quarters in over a decade, marked by a second consecutive revenue slide. Today's events to watch * European Central Bank policy decision (8:15 AM EDT) and press conference by ECB President Christine Lagarde (8:45 AM EDT) * U.S. weekly jobless claims (8:30 AM EDT), Chicago Federal Reserve June national activity index (8:30 AM EDT), Flash July U.S. business surveys from S&PGlobal (9:45 AM EDT), June new home sales (10:00 AM EDT), Kansas City Fed July business surveys (11:00 AM EDT) * U.S. corporate earnings: Intel, Dow, Honeywell, Allegion, Newmont, CenterPoint, Ameriprise, Nasdaq, Mohawk, Keurig Dr Pepper, Westinghouse, Union Pacific, Valero, Dover, Textron, West Pharmaceutical, VeriSign, Southwest Airlines, Weyerhaeuser, AO Smith, L3Harris, Labcorp, Deckers Outdoor, LKQ, Pool * U.S. Treasury sells $21 billion of 10-year inflation-protected securities * European Commission President Ursula von der Leyen and European Council President Antonio Costa meet Chinese President Xi Jinping and Chinese Premier Li Qiang in Beijing Want to receive the Morning Bid in your inbox every weekday morning? Sign up for the newsletter here. You can find ROI on the Reuters website , opens new tab, and you can follow us on LinkedIn , opens new tab and X. , opens new tab Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles , opens new tab, is committed to integrity, independence, and freedom from bias. https://www.reuters.com/business/finance/global-markets-view-usa-2025-07-24/

2025-07-24 10:08

LONDON, July 24 (Reuters) - Britain's manufacturing sector seems to have stabilised after a downturn but the outlook remains fragile with factories holding back on investment and cutting jobs again, according to a survey published by the Confederation of British Industry. As well as weaker demand, manufacturers were facing tough price pressures, the survey published on Thursday showed. Sign up here. "Conditions in UK manufacturing remain challenging, with many firms reporting subdued and unpredictable demand," Ben Jones, lead economist at the CBI, said. "High input costs, labour shortages and global supply chain disruptions are continuing to put pressure on margins and capacity," Jones said. The survey showed a drop in optimism among manufacturers with little sign of a recovery in investment plans. Companies were facing uncertainty about future demand, inadequate returns and persistent labour shortages, the CBI said. A measure of employment in the next three months remained negative albeit less so than in April. The monthly balance for manufacturing new orders improved to -30 in July from June's -33, taking them back to May's reading. The monthly reading also showed a pick-up in average prices that manufacturers expect to charge over the next three months to +21 from +19 in June. https://www.reuters.com/world/uk/uk-factory-slowdown-eases-companies-remain-wary-cbi-survey-shows-2025-07-24/

2025-07-24 10:08

Opendoor Technologies, Kohl's among stocks with huge moves Crypto, crypto-linked shares also showing signs of speculation Some options measures not at highs seen at past periods of trading frenzy NEW YORK, July 24 (Reuters) - Massive moves in stocks such as Kohl’s and Opendoor Technologies are raising questions over whether a new wave of meme stock trading is underway and what that signals about risk appetite more broadly. Benchmark equity indexes have touched record highs, cryptocurrencies are rallying, and options trading volumes have jumped, highlighting renewed signs of speculative fervor across asset classes. Sign up here. Much of the risk-taking behavior is being driven by retail market participants, investors said, with larger institutional players taking a more circumspect view. "It seems like the story, at least in the equity market, is everything is kind of risk on," Garrett DeSimone, head of quantitative research at OptionMetrics, said. "It has gotten a bit frothy in that sense." So-called meme stocks - stocks that surge in price due to social media hype rather than company fundamentals - are at the forefront of this frothy market behavior. Krispy Kreme(DNUT.O) , opens new tab and GoPro (GPRO.O) , opens new tab were among the companies riding the latest meme stock rally on Wednesday as retail traders latched on to the highly shorted names, a day after piling into the shares of department store company Kohl's. The Goldman Sachs Most Shorted Rolling Index (.GSCBMSAL) , opens new tab, an equal-weighted basket of the 50 highest short-interest names in the Russell 3000 Index, is up 13% this month, compared to a nearly 2% gain for the Russell 3000 (.RUA) , opens new tab in that time, and is up over 60% since the low for the year in April. "Retail has helped fuel the squeeze," Marco Iachini, senior vice president of research at Vanda, said. Retail interest was particularly on display in the options market with several retail favorite options names, including Krispy Kreme and Kohl’s, drawing massive trading volume. "They also have a huge amount of mentions across retail boards and Reddit. So they've definitely attracted some attention, you know, not based on fundamentals, which I guess defines a meme stock," OptionMetrics' DeSimone said. Trading in short-dated contracts has also surged, signaling higher appetite for risk-taking, options data showed. Still, various options market gauges, including put-to-call ratios and stock correlation measures, point to frothiness but are not at highs seen at the peak of past periods of speculative frenzy. "There is not the signal yet that things are so overbought that this needs to stop ... to me it still feels early stage," said Brent Kochuba, founder of options analytic service SpotGamma. Speculative fever is on display also in cryptocurrencies and crypto-related stocks and exchange-traded funds. Bitcoin, the world's largest cryptocurrency, recently hit a record high of $123,153, while several crypto-focused stocks, including crypto exchange Coinbase Global (COIN.O) , opens new tab and bitcoin stockpiler Strategy, formerly known as MicroStrategy (MSTR.O) , opens new tab, have soared. "Confidence among retail traders is notably higher, fueled in part by recent gains in crypto markets," Mark Hackett, chief market strategist at Nationwide, said in a note. Irene Tunkel, chief U.S. equity strategist at BCA Research, said although retail investors appeared to be over-exuberant, the market as a whole did not. "You look at institutional investor sentiment, it's not really overextended," Tunkel said. "So I think it's just one group, which is retail investors, that got overly excited and the froth is there." Despite the S&P 500 making new highs, equity positioning is far below February levels as investors remain underweight stocks, according to Deutsche Bank estimates. The S&P 500 (.SPX) , opens new tab as of Tuesday traded at 22.5 times its expected 12-month earnings - its highest level this year - and has been above a forward price-to-earnings ratio of 22 for nearly the past month, according to LSEG Datastream. That is a valuation level the index has reached only about 7% of the time over the past 40 years, and is well above its long-term average of 15.8. Investors say valuations are not always useful for determining the market's near-term direction. But the fact that equity valuations are elevated could make stocks more vulnerable to any disappointing shocks in the coming weeks. "For me, it's more when positioning gets really crowded. So right now, we're seeing these bouts of meme stock trading, but I'm not seeing it really affect the overall market," Vanda's Iachini said. https://www.reuters.com/business/meme-stock-surge-underlines-market-froth-mostly-centred-retail-investors-2025-07-24/

2025-07-24 09:45

July 24 (Reuters) - Sterling was set to snap a three-day winning streak against the dollar on Thursday, pressured by concerns over the UK economy and potential tax hikes. Progress in U.S. trade talks with key partners eased investor worries about a global trade war, sparking a rally in risk assets and lifting the pound earlier this week. Sign up here. However, UK PMI data showed that business activity grew only weakly in July and employers cut jobs at the fastest pace in five months, according to a survey. Such figures are likely to add to speculation about a Bank of England interest rate cut next month. Markets are currently pricing an 80% chance of a rate cut in August and two easing moves by year-end. The pound dropped 0.28% to $1.3544 , after hitting a fresh two-week high early in the session at $1.3588. The dollar edged up versus the euro and the yen after progress in trade negotiations. Sterling weakened against the single currency, which was down 0.16% at 86.81 pence. . The euro hit 86.98 pence last week, its highest level since April 11. The rate differential between the UK and the euro area has been affecting the cross. Markets are pricing in a European Central Bank terminal rate of 1.75%, down from the current 2%, while expecting the Bank of England to cut rates by 85 basis points by the end of next year. “Fears over strained public finances, the growing likelihood of more tax bumps and its implications for the UK economy are weighing on the pound against the euro,” said Matthew Ryan, head of market strategy at global financial services firm Ebury, after mentioning June data on government borrowing released on Tuesday. Britain’s government borrowed £20.68 billion ($27.86 billion) in June. A Reuters poll forecast had pegged public sector net borrowing at a median of £16.5 billion. https://www.reuters.com/world/uk/sterling-poised-end-3-day-rally-vs-dollar-economic-tax-concerns-2025-07-24/