2025-07-18 06:16

LITTLETON, Colorado, July 18 (Reuters) - U.S. President Donald Trump has singled out the coal industry as a key driver of U.S. energy dominance, but there are currently no new U.S. coal plants under construction and utilities have identified quicker and cheaper paths to boost power supplies. In the first few months of Trump's second term, he has signed several executive orders and deployed federal funding aimed at reviving the coal mining and power sectors. read more read more read more read more Sign up here. But U.S. utilities continue to prioritize adding renewables, batteries, gas and nuclear power ahead of new coal-fired capacity based on the cost and efficiency. Even the coal export market has only limited growth potential, as Indonesia and Australia - much larger exporters - boast far quicker and cheaper access to key buyers in Asia, the only region showing a sustained increase in coal demand. That means that even with strong support from the federal government, the U.S. coal sector may still struggle to generate any sustained growth over the near to medium term as global energy systems continue to lean towards cleaner power supplies. AGING OUT There's been six times more coal power plants retired than constructed in the U.S. this century, which underscores the scope of the challenge facing even the most ardent coal bulls as they try to engineer an industry revival. Between 2000 and 2024, nearly 166,000 megawatts (MW) of outdated coal capacity was retired in the United States, according to data from Global Energy Monitor (GEM). And even though around 26,000 MW of new U.S. coal plants have been constructed since 2000, the newest - the Sandy Creek Energy Station in Texas - came online over a decade ago. This has caused total U.S. coal power generation capacity to drop by around 42% in the last quarter century, to around 194 gigawatts, according to Ember. The rapid retirement pace reflects the age of the U.S. coal power network, as more than 80% of all U.S. coal power plants were built between 1950 and 1990, according to the U.S. Energy Information Administration (EIA). And over 75% of the remaining plants are already 40 years old or more, exceeding their expected lifespan. Several power networks have delayed the closure of some aged plants on the grounds that keeping them operating will avert potential power shortages. And the Trump administration has exempted several coal plants from new emissions standards that would have forced them to close within the next decade. read more However, the power generation sector is handling less and less coal as more plants have been retired and replaced by other forms of generation. Indeed, since 2000 there has been a 65% decline in the amount of coal used by the power sector, data from the Energy Institute shows. There is thus little appetite among utilities to construct new coal plants, given the plethora of alternatives available to them that can generate power more quickly and cheaply and with fewer emissions. COAL CRUTCH The drop in coal-fired U.S. power has led to a sharp fall in domestic coal mine output, which has more than halved since 2000 to just over half a billion short tons in 2024, EIA data shows. Wyoming (237 million tons), West Virginia (85 million tons), Pennsylvania (43 million tons) and Kentucky (28 million tons) were the top coal producing states in 2023. Lower mine output has triggered steep cuts to the number of people engaged in coal mining, which peaked this century in 2011 at around 91,600, but contracted to around 45,500 by 2023, EIA data shows. Every major coal mining state has been affected by layoffs, with some harder hit than others. Kentucky has seen coal employee levels drop by over 70% since 2011, while Pennsylvania and Virginia have seen employee numbers fall by nearly half. EXPORT CHALLENGE The hardships resulting from these mass layoffs have helped turn the coal mining sector, which is primarily found in Republican "red" states, into an influential political force, as candidates look to tout their industry-friendly credentials. This has certainly been the case with Trump. Beyond encouraging power networks to increase use of coal in generation, the Trump administration has recently approved mine expansions on federal land in order to boost supplies for export to Japan and South Korea. Targeting Asia makes sense given that the region's buyers already account for over half of all U.S. thermal coal shipments, data from Kpler shows, as well as 80% of global coal consumption. However, U.S. market share in the region can only grow so much, as rival exporters such as Indonesia still boast a significant advantage in terms of shipping times and cost. The journey time for a possible coal shipment from Westshore export port in British Columbia - the main exit point for coal mined in the Western U.S. - to Japan is around 15 days, according to LSEG. In contrast, the journey time from the largest coal export point in Indonesia to Japan is nine days. In addition to cutting the journey time by over a third, Indonesian coal exporters can also offer lower coal costs and larger cargo volumes, an attractive combination for large-scale importers. That means that U.S. vendors will likely only be able to eke out piecemeal sales to Asian buyers, while bigger exporters secure larger and more regular trade flows to the region's utilities. In combination with declining coal demand by power plants at home, this will likely leave the coal mining sector struggling to generate sustained demand for its output, regardless of how much support it enjoys in Washington, DC. The opinions expressed here are those of the author, a columnist for Reuters. Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI can help you keep up. Follow ROI on LinkedIn , opens new tab and X , opens new tab. https://www.reuters.com/markets/commodities/trumps-push-comeback-coal-may-turn-ashes-2025-07-18/

2025-07-18 06:16

India dealers widen discount to $10/oz this week China premiums slip on lower demand India's June gold imports fall to two-year low July 18 (Reuters) - Gold demand in India remained subdued this week, as near record-high prices kept buyers at bay and prompted dealers to widen discounts to lure them, while elevated rates curtailed activity across other major Asian hubs as well. Indian dealers were offering a discount up to $10 an ounce over official domestic prices - inclusive of 6% import and 3% sales levies - up from the last week's discount of up to $8. Sign up here. "Jewellery stores all over the country are seeing fewer customers. People aren't ready to buy just yet... They're holding off, hoping prices will come down," said a Kolkata-based jeweller. Domestic gold prices were trading around 97,500 rupees per 10 grams on Friday after hitting an all-time peak of 101,078 rupees last month. Gold discounts could have risen sharply due to weak demand, but supplies are limited because of a sharp fall in imports, said a Mumbai-based bullion dealer with a private bank. India's gold imports in June fell 40% from a year ago to 21 tons, their lowest level in more than two years, amid sluggish demand. In China, the world's top gold consumer, dealers quoted discounts of $5 per ounce to $10 premium on spot rates , down from the premiums of $10-$25 charged last week. "In China, I don't see too much physical buying interest at this moment due to the summer holiday. Maybe from October, you can expect the demand to pick up," said Peter Fung, head of dealing at Wing Fung Precious Metals. In Hong Kong, gold was sold at $1-$2 premiums, while dealers in Singapore sold gold at par with the global benchmark to a premium of up to $2.20. In Japan, bullion traded between a $0.50 discount and a $1 premium. https://www.reuters.com/world/china/asia-gold-discounts-widen-india-elevated-prices-dull-activity-2025-07-18/

2025-07-18 06:11

Dollar index heads for 0.72% rise after strong retail sales data US currency still faces pressure from Trump's attacks on Fed chief Yen pressured as Japan's coalition facing tough weekend election TOKYO, July 18 (Reuters) - The dollar headed for a second straight weekly gain against major peers, buoyed by some solid U.S. economic data that supported the view the Federal Reserve can afford to wait a while longer before cutting interest rates again. The yen remained on the back foot heading into upper house elections on Sunday in Japan, with polls suggesting the ruling coalition is at risk of losing its majority - a development that would stir policy uncertainty and complicate tariff negotiations with the U.S. Sign up here. Bitcoin hovered just above $120,000, after this week pushing to an all-time peak of $123,153.22, with the U.S. Congress passing a bill to create the framework for dollar-pegged stablecoins. The dollar index , which measures the currency against six leading counterparts, edged up to 98.57 as of 0534 GMT, putting it on track for a 0.72% weekly advance and building on the previous week's 0.91% rally. The dollar index climbed as high as 98.951 on Thursday for the first time since June 23 after U.S. data showed retail sales rebounded more than expected in June and first-time applications for unemployment benefits dropped to a three-month low last week. Earlier in the week, a report showed consumer prices increased by the most in five months in June, suggesting tariffs were starting to have an impact on inflation. 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. At the same time, the dollar index remains 9.15% lower over the course of this year, following a steep selloff in March and April when President Donald Trump's erratic trade policies undermined confidence in U.S. assets, sending the currency, Treasury bonds and Wall Street stocks all lower. 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's relentless criticism of Federal Reserve Chair Jerome Powell for not cutting rates. "The USD remains vulnerable to the downside if concerns about U.S. policymaking further undermine investor confidence in USD assets," Commonwealth Bank of Australia analysts wrote in a client note. The U.S. currency's drop earlier this week on speculation Trump was aiming to oust Powell "was a case in point," the analysts said. The dollar tumbled on Wednesday on a Bloomberg report that Trump was planning to fire Powell soon, before paring losses when Trump denied the news. Trump has said repeatedly that interest rates should be at 1% or lower, compared with the current 4.25%-4.5% range. The dollar gained 0.12% to 148.78 yen , inching closer to the 3-1/2-month high of 149.19 from Wednesday, as signs grew that Japan's coalition would fall short of retaining its majority. That would potentially give more sway to opposition parties that back consumption tax cuts to ease the burden on voters from rising prices. For the week, the dollar has gained 0.94% on the Japanese currency. "Our baseline scenario is one in which the ruling coalition fails to secure a majority," Yusuke Matsuo, senior market economist at Mizuho Securities, wrote in a note. "In this case, we think domestic markets would move into 'risk-off' mode, sending stocks, the yen, and short- and medium-term interest rates all lower." 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 that would become effective after an August 1 deadline. The euro rose 0.16% to $1.1617, clawing its way off Thursday's three-week low of $1.1556. For the week, the euro is down 0.65%. Sterling was flat at $1.3418, keeping it on course for a 0.53% weekly decline. Bitcoin edged up 0.82% to around $120,460 on the day. https://www.reuters.com/world/africa/dollar-set-weekly-gain-firm-us-data-tempers-fed-easing-bets-2025-07-18/

2025-07-18 06:04

Asian stock markets: Yen down for second week ahead of Japan upper house election Wall St closes at record highs, Netflix beats street Dollar bounces for the week, Treasury yields slightly lower SYDNEY, July 18 (Reuters) - Asian shares tracked Wall Street higher on Friday as still-strong U.S. economic data and robust corporate earnings offset tariff worries, while the yen headed toward a second successive week of loss ahead of Japan's upper house election. Overnight, the S&P 500 and the Nasdaq again closed at record highs as U.S. data including retail sales and jobless claims beat forecasts, indicating a modest improvement in the economy that should give the Federal Reserve time to gauge the inflation impact from higher U.S. tariffs. Sign up here. Streaming giant Netflix (NFLX.O) , opens new tab beat Wall Street's lofty expectations for second-quarter earnings in part due to a weaker U.S. dollar. Its share price, however, fell 1.8% in after-hours trading, with analysts saying much of the growth had already been priced in. European share markets are set for a higher open, with EUROSTOXX 50 futures 0.4% higher. Wall Street futures , were up 0.2%. On Friday, MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) , opens new tab rose 0.7% to its highest since late 2021, bringing the weekly gain to 1.5%. Japan's Nikkei (.N225) , opens new tab, however, slipped 0.2%, and the yen slipped 0.1% to 148.77 per dollar and was down about 0.7% this week after polls showed Prime Minister Shigeru Ishiba's coalition was in danger of losing its majority in the election on Sunday. Data on Friday showed Japan's core inflation slowed in June due to temporary cuts in utility bills but stayed beyond 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." Chinese blue-chips (.CSI300) , opens new tab rose 0.4% while Hong Kong's Hang Seng index (.HSI) , opens new tab gained 0.8%. The Tapei-listed shares of TSMC (2330.TW) , opens new tab, the world's main producer of advanced AI chips, rose 1.3% after posting record quarterly profit, though it said future income might be affected by U.S. tariffs. In the foreign exchange market, U.S. the dollar was on the back foot on Friday, having bounced 0.3% overnight against major peers on the strong economic data. For the week, it is headed for a second successive gain of 0.7%, bouncing further 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. Fed funds futures imply next to no chance of a move on July 30, while a September rate cut is just about 62% priced in. Treasury yields were slightly lower in Asia. Benchmark 10-year U.S. Treasury yields slipped 3 basis points to 4.4375%, having moved little overnight. Two-year yields also edged 2 bps lower to 3.8944%. Oil prices extended gains on Friday, after drones strikes on Iraqi Kurdistan oil fields fuelled supply concerns. U.S. crude rose 0.4% to $67.79 per barrel and Brent also rose 0.4% to $69.77 a barrel. They, however, lost about 0.7% for the week. Spot gold prices were steady at $3,337 an ounce but were set for a 0.5% weekly loss. https://www.reuters.com/world/china/global-markets-wrapup-2-2025-07-18/

2025-07-18 05:44

MUMBAI, July 18(Reuters) - The Indian rupee and local equities have been increasingly moving in sync over the past month as muted portfolio flows alongside lingering uncertainty over U.S. tariffs continue to cloud investor sentiment. The rupee's 30-day correlation with the benchmark Nifty 50 index has tightened to 0.66, the highest level since mid-May, pointing to the currency's increased sensitivity to moves in local stocks. Sign up here. On the day, the Nifty 50 (.NSEI) , opens new tab was down about 0.6%, while the rupee dipped to last quote at 86.2025 per U.S. dollar as of 10:50 a.m. IST, down 0.1%. Local equities diverged from regional peers, led by losses in financial stocks. Asian currencies, meanwhile, were trading mixed and the dollar index was little changed at 98.5. Amidst the largely rangebound moves, the rupee's 1-month implied volatility has eased to a near one-month low of 4.2%, while the stock volatility gauge, India VIX (.NIFVIX) , opens new tab, has retreated to 11.6 from around 14 a month earlier. Foreign portfolio flows, a key driver for both the rupee and local stocks, have also been muted, contributing to rangebound price action, a trader at a state-run bank pointed out. Both the local equity and FX markets are "lacking a clear direction right now," said Apurva Swarup, vice president at Shinhan Bank India, referring to the rangebound moves. News on the U.S.-India trade deal would be key to watch, as it could push stocks and the rupee to move out of their prevailing ranges, Swarup added. The United States is very close to a trade deal with India, U.S. President Donald Trump said earlier this week. Country-specific reciprocal tariff rates on exports to the U.S. are slated to go into effect starting August 1. On the day, dollar bids from foreign and local private banks weighed on the rupee, with traders also pointing to heightened demand to buy dollars at the daily reference rate. https://www.reuters.com/world/india/rangebound-patterns-tighten-rupees-correlation-with-indian-stocks-2025-07-18/

2025-07-18 05:34

July 18 (Reuters) - Swiss lift and escalator maker Schindler (SCHP.S) , opens new tab reported a 5.7% drop in its second-quarter sales on Friday due to negative currency exchange effects related to the strong Swiss franc. It posted quarterly revenue of 2.75 billion Swiss francs ($3.43 billion), down from 2.92 billion francs a year earlier, but beat analysts' average forecast of 2.65 billion francs, according to LSEG data. Sign up here. Currency exchange headwinds had a negative impact of 186 million francs on its sales in the first half of the year, the company said in a statement. U.S. President Donald Trump's tariff announcements have driven up the Swiss currency, seen as a safe haven amid global economic turmoil. The franc's value against the U.S. dollar has grown around 12% since the start of the year. As Schindler makes a vast majority of its sales in foreign currencies, this means their value suffers a negative impact when converted into francs. "Notably, our efforts in modernization are paying off, driving solid organic growth at a time of macro-economic uncertainty and severe currency headwinds," CEO Paolo Compagna said. Schindler has focused on digitalization in recent years, a move that it expects to drive growth through enhanced customer loyalty as services become more efficient. The group's modernization business grew strongly in the second quarter while the service unit continued to grow at a steady pace. Orders for new installations were stable overall despite market weakness in China, it said. Schindler's quarterly order intake amounted to 2.93 billion Swiss francs, compared to 2.99 billion francs a year earlier. The company confirmed its full-year guidance for 2025, expecting revenue to grow in a low single-digit percentage in local currencies, with an operating profit margin of around 12%. ($1 = 0.8027 Swiss francs) https://www.reuters.com/markets/europe/schindlers-revenue-falls-q2-beats-market-forecasts-2025-07-18/