2025-07-18 11:52
July 18 (Reuters) - Top oilfield services firm SLB (SLB.N) , opens new tab narrowly beat Wall Street expectations for second-quarter profit on Friday, as resilient demand in parts of its international business helped offset drilling slowdown in North America, Mexico and Saudi Arabia. SLB, the first of the Big Three U.S. oilfield services provider to report quarterly results, had previously flagged weaker drilling activity in Saudi Arabia and Latin America, with rigs demobilized and short-cycle work slowing. Sign up here. "The market is navigating several dynamics — including fully supplied oil markets, OPEC+ supply releases, ongoing trade negotiations and geopolitical conflicts," CEO Olivier Le Peuch said in a statement. Crude prices averaged $66.83 per barrel in the April–June quarter, down more than 21% from a year earlier. The decline has raised concerns about a broader pullback in exploration and production spending, weighing on demand for oilfield services. "Customers have selectively adjusted activity, prioritizing key projects and planning cautiously, particularly in offshore deepwater markets," Le Peuch added. Shares of the company were up 1.3% in premarket trading. SLB said international revenue declined more than 8% in the quarter to $6.85 billion, from $7.45 billion a year ago. That still beat analysts' expectation of $6.77 billion, according to data compiled by LSEG. The company got a boost from higher offshore activity and increased drilling demand in the UAE, Kuwait and Iraq. Total revenue fell 6% to $8.55 billion, but beat expectation of $8.48 billion. SLB said its second-quarter North America revenue rose 1% to $1.66 billion from last year, helped by gains in data-center infrastructure solutions. The company posted earnings, excluding charges and credits, of 74 cents per share, for the three months ended June 30, compared with expectation of 73 cents. https://www.reuters.com/business/energy/slb-beats-quarterly-profit-estimates-steady-oilfield-services-demand-2025-07-18/
2025-07-18 11:51
Yen could weaken through 150 a dollar if ruling party loses election, analyst says Dollar index rises after strong retail sales data US currency still faces pressure from Trump attacks on Fed chief TOKYO/LONDON, July 18 (Reuters) - The yen came under pressure on Friday heading into Sunday's upper house election in which Japan's ruling party looks vulnerable, while, more broadly, the U.S. dollar was set for a second weekly gain against major peers, helped by solid economic data. The dollar was steady against the yen on Friday at 148.56 , heading for a weekly rise of 0.7% on the Japanese currency, more than its gains against the euro, pound or Swiss franc. Sign up here. Part of the reason for the weakness is Sunday's election. Polls suggest Japan's ruling coalition is at risk of losing its majority - a development that would stir policy uncertainty at home and complicate tariff negotiations with the U.S. "A lurch through the 150-level (yen per dollar) is likely if the government loses its majority," said Derek Halpenny, head of research, global markets EMEA at MUFG, and that moves on Monday could be exacerbated by thin liquidity because of a holiday in Japan. "With most other parties calling for further support for households, speculation of additional fiscal spending will likely see further rises in (Japanese government bond) yields and additional yen selling," Halpenny said. U.S. tariffs are adding pressure to the yen, as Japan, which initially was touted by the White House as likely to be among the first to reach a trade deal, has been deadlocked with Washington over politically sensitive issues of car and agriculture tariffs. Japan's top trade negotiator, Ryosei Akazawa, held talks with U.S. Commerce Secretary Howard Lutnick on Thursday, as Tokyo races to avert a damaging 25% levy after an August 1 deadline. DOLLAR STRENGTH Elsewhere, currencies were consolidating, with the dollar weaker on the day on most peers, but still set for a weekly gain as strong U.S. economic data caused traders to pare back their expectations for Federal Reserve rate cuts in the near term. The euro was up 0.4% on the dollar at $1.1643 and the pound was up 0.26% at $1.3453 , though both are set for weekly declines. The dollar index, which tracks the currency against six main peers, was last 98.31, up 0.5% on the week, building on the previous week's 0.91% rally . U.S. data Thursday showed retail sales rebounded more than expected in June and first-time applications for unemployment benefits dropped to a three-month low last week. That, in combination with data earlier in the week showing U.S. consumer prices increased by the most in five months in June, has shifted Fed expectations. Traders currently price about 45 basis points of U.S. rate cuts for the remainder of the year, down from closer to 50 basis points at the start of the week. Clouds of uncertainty still hang over the dollar though, which has been shaken in recent days and weeks by fiscal worries from Trump's massive spending and tax-cut bill, as well as the U.S. President Donald Trump's relentless criticism of Fed Chair Jerome Powell for not cutting rates. The dollar index remains 9.15% lower over the course of this year, following a steep selloff in March and April when Trump's erratic trade policies undermined confidence in U.S. assets, sending the currency, Treasury bonds and Wall Street stocks all lower. Elsewhere, the dollar was down 0.4% on the Swiss franc at 0.8001 francs while Bitcoin hovered just above $120,000. The world's biggest cryptocurrency pushed to an all-time peak of $123,153.22 this week, with the U.S. Congress passing a bill to create the framework for dollar-pegged stablecoins. Ether, the second-largest crypto currency, outperformed, hitting a six-month high and was last up 5.6% on the day at $3,610. https://www.reuters.com/world/africa/japanese-yen-soft-ahead-sunday-election-us-dollar-clings-weekly-gains-2025-07-18/
2025-07-18 11:46
JAKARTA, July 18 (Reuters) - An Indonesian court on Friday sentenced a former trade minister to 4.5 years in jail for improperly granting sugar import permits that authorities said had caused nearly 600 billion rupiah ($36.84 million) in state losses. Thomas Trikasih Lembong served as trade minister in 2015 and 2016 under President Joko "Jokowi" Widodo. Once seen as Jokowi's close aide, Lembong turned into one of the government's staunchest critics after leaving office. Sign up here. Judges at the corruption court in the capital Jakarta said Lembong, as minister, was guilty of improperly granting import permits for sugar to private companies when the Southeast Asian country had a surplus of sugar. Indonesia's sugar output in 2015 was 2.49 million metric tons, while consumption was 2.12 million. In last year's presidential election, Lembong was the campaign manager for candidate Anies Baswedan. The election was won in a landslide by Prabowo Subianto, whom Jokowi backed. Lembong, who was arrested days after Prabowo's inauguration last year, had claimed in court that his prosecution was due to his involvement in the opposition camp, local media reported. Prosecutors had denied his arrest was politically motivated. "The defendant was proven legally and convincingly to be guilty of having committed a corruption act," Judge Purwanto S. Abdullah said, to jeers from the crowd. Before handing the sentence, the judges had argued the import permits did not go through the proper procedures of consulting with other state bodies and that he had prioritised "capitalistic" interests over social justice. However, the judges said he did not enrich himself, leading to a shorter sentence than the seven years prosecutors had demanded. Prosecutors said Lembong had enriched the private companies. Holding up his handcuffed hands, Lembong told reporters after the sentencing that he would consider whether or not to appeal, saying judges had ignored his defence team. His lawyer Ari Yusuf Amir did not immediately respond to a Reuters request for comment on Friday. ($1 = 16,285.0000 rupiah) https://www.reuters.com/world/asia-pacific/indonesia-court-jails-former-trade-minister-45-years-sugar-graft-case-2025-07-18/
2025-07-18 11:37
Solid US economic data this week supports sentiment Oil up as investors weigh impact of fresh EU sanction on Russia Alphabet, Tesla among companies to report earnings next week LONDON/SYDNEY, July 18 (Reuters) - Global shares were on track for weekly gains on Friday as robust U.S. economic data and corporate earnings this week tempered tariff concerns for now, while the yen headed toward a second successive weekly loss ahead of a crunch legislative election in Japan on Sunday. Stronger than expected U.S. retail sales and jobless claims data, suggesting modest improvement in economic activity, helped to push the S&P 500 and the Nasdaq to close at record highs on Thursday. Sign up here. MSCI's broadest index for global stocks edged up 0.2% on Friday and was on track for a 0.6% weekly gain. (.MIWD00000PUS) , opens new tab Asian shares outside Japan were up 0.9% on the day (.MIAPJ0000PUS) , opens new tab, while European stocks were broadly flat. Wall Street futures , were also flat ahead of the open. A solid start to earnings season in the U.S. - with companies including streaming giant Netflix (NFLX.O) , opens new tab beating forecasts - is supporting investor confidence, said Eren Osman, managing director of wealth management at Arbuthnot Latham. "We're pretty constructive on the (U.S.) macro backdrop... We do see some scope for slowing growth, but not for anything material and that's giving the markets quite a nice bounce," Osman said, adding the potential full impact of U.S. tariffs was still in focus. Alphabet (GOOGL.O) , opens new tab and Tesla (TSLA.O) , opens new tab are among the companies reporting half-year results next week, which will further test the market mood. Oil prices also gained on Friday as investors weighed new European Union sanctions against Russia, which include measures aimed at dealing further blows to Russia's oil and energy industries. U.S. crude rose 1% to $68.19 per barrel and Brent was up 0.8% to $70.06 a barrel. The yen was broadly flat at 148.5 per dollar but was about 0.7% weaker this week after polls showed Japanese Prime Minister Shigeru Ishiba's coalition was in danger of losing its majority in the upper house election on Sunday. Data on Friday showed Japan's core inflation slowed in June due to temporary cuts in utility bills but stayed above the central bank's 2% target. The rising cost of living, including the soaring price of rice, is among the reasons for Ishiba's declining popularity. "If PM Ishiba decides to resign on an election loss, USDJPY could easily break above 149.7 as it would usher in an initial period of political turbulence," said Jayati Bharadwaj, head of FX strategy at TD Securities. "JPY could reverse the recent dramatic weakness if the ruling coalition wins and is able to make swift progress on a trade deal with Trump." Elsewhere, the U.S. dollar index slipped 0.2% to 98.285, but was still heading for a second successive weekly gain of about 0.4%, bouncing from a 3-1/2 year low hit over two weeks ago. Fed Governor Christopher Waller said on Thursday he continues to believe the central bank should cut interest rates at the end of this month, though most officials who have spoken publicly have signalled no desire to move. U.S. Treasury yields were slightly lower. Benchmark 10-year yields dropped nearly 3 basis points to 4.44%, while two-year yields also edged 3 bps lower to 3.89%. Spot gold prices gained 0.4% to $3,353 an ounce. https://www.reuters.com/world/china/global-markets-wrapup-4-2025-07-18/
2025-07-18 11:29
LONDON, July 18 (Reuters) - The pound was set to finish the week down on the dollar and a fraction stronger against the euro as traders digested data that caused analysts to pare back expectations of near-term Bank of England easing and worry about longer-term economic prospects. Sterling was last up 0.27% on the day against the dollar at $1.3454, though set for a weekly fall of 0.3%, both in line with the dollar's moves against other European currencies. Sign up here. It was trading at 86.57 pence to the euro, softer on the day, but a whisker stronger on the week. Friday was quiet in terms of domestic British data after a busy week, which saw hotter than expected inflation numbers released on Wednesday and news of slowing wage growth on Thursday. The data caused analysts at Goldman Sachs, Citi and Bank of America, who had previously expected the Bank of England to cut interest rates in both August and September, to remove the September cut from their forecasts in notes published on Friday. "The labour market has been softening, pay growth is slowing and growth data remains weak. This is likely to warrant further cuts, and we continue to expect the next cut in August," BofA said. "But stronger-than-expected inflation and sizeable upward revisions to recent payroll falls show that the data is not weakening enough for the BoE to accelerate cuts." Markets are close to fully pricing a rate cut in August, and see one more as likely by year-end. But while a prospect of fewer BoE rate cuts would typically support the pound, its gains have been limited by the implications of higher borrowing costs for Britain's public finances. "The outlook for the UK appears much weaker than other major economies," said currency analysts at Monex Europe. "We expect these building headwinds to weigh on the pound in the coming weeks." https://www.reuters.com/world/uk/pound-mixed-end-busy-data-week-boe-policy-top-mind-traders-2025-07-18/
2025-07-18 11:24
EU approves new Russia sanctions Carnival has moved to silver, platinum and palladium- analyst Palladium up 4% July 18 (Reuters) - Gold prices firmed on Friday on a weaker dollar and persistent geopolitical tensions, though easing concerns about the U.S. Federal Reserve's independence, and strong U.S. data capped gains. Spot gold was up 0.4% at $3,350.87 per ounce, as of 1013 GMT, after falling 1.1% in the previous session. The bullion has receded 0.1% so far this week. Sign up here. U.S. gold futures rose 0.3% to $3,356.70. The dollar (.DXY) , opens new tab was down 0.4% for the day, though headed for a second straight weekly rise. A weaker dollar tends to make gold cheaper for buyers holding other currencies. The European Union agreed to an 18th package of sanctions against Russia over its war in Ukraine, including measures aimed at dealing further blows to its oil and energy industry. "Gold is rising on the softer US dollar, yet remains hemmed in by this week’s U.S. data releases which buffered the notion that the world’s largest economy remains resilient," said Han Tan, chief market analyst at Nemo.Money. "New EU sanctions on Russia are a reminder to market participants that geopolitical risks remain evident on the global stag." Earlier in the week, a source told Reuters that U.S. President Donald Trump was open to firing Fed Chair Powell. Trump later said he doesn’t plan to sack Powell but renewed his criticism over the Fed's interest rate policy. Meanwhile, U.S. retail sales in June exceeded expectations, while initial jobless claims too were better. "In precious metals, the carnival has moved on from safe-haven gold to silver, platinum and palladium as pro-growth, industrial alternatives," said Adrian Ash, head of research at online marketplace BullionVault. Spot platinum rose 0.3% to $1,461.77 per ounce, its highest since August 2014. Palladium climbed 4% to $1,329.88, its highest since August 2023. Silver was up 0.5% at $38.31. https://www.reuters.com/world/china/gold-drifts-higher-platinum-highest-over-decade-2025-07-18/
