2025-07-16 06:19

LITTLETON, Colorado, July 16 (Reuters) - Surging clean power supplies have allowed China's utilities to reduce their emissions from electricity production to record lows during the opening half of 2025. Carbon dioxide emissions per kilowatt hour (kWh) of electricity averaged 492 grams during the opening half of 2025, according to data from energy portal electricitymaps.com. Sign up here. That was the first ever reading below 500 grams per kWh, and is down from 514g/kWh during the same period in 2024 and 539g/kWh from January to June 2023. CLEANING UP A nearly 23% rise in clean power generation from January to June 2024 was the main driver behind the reduction in emissions intensity, as higher volumes of clean energy allowed power firms to reduce output from coal and gas power plants. Total power generation from thermal power plants - mainly coal - dropped by 4% from a year ago to just under 7,000 terawatt hours (TWh), data from LSEG shows. Output from clean energy sources from January to June totalled 2,400 TWh, highlighting that fossil fuel power sources still account for a 75% share of China's power generation mix. But the growth of clean energy supplies continues to sharply outpace growth in fossil fuel power generation, suggesting that China's power mix looks set to keep getting cleaner. Total Chinese clean power output during the first half of 2025 was 200% more than during the first half of 2019, according to LSEG. In contrast, total Chinese thermal power output from January to June 2025 was 20% greater than during the same period in 2019. EMISSIONS TOLL China's power sector emissions from fossil fuel generation have declined in line with the cleaner mix. Total emissions from fossil fuels used in electricity production from January to May were 2.24 billion metric tons of CO2, according to data from energy think tank Ember. That total is 60.5 million tons less than during the same months of 2024, and is an indication that some progress is being made against Beijing's goals of reducing energy sector pollution. However, the enduring economic drag caused by a lingering property downturn as well as the uncertainty surrounding tariffs charged by the United States on Chinese goods is also impacting China's power needs and emissions totals. The pace of construction in China has slowed sharply so far this decade following a debt crisis among property developers, which in turn has choked off demand for energy-intensive goods such as cement, piping, glass and construction steel. More recently, the fresh tariffs on Chinese goods set by U.S. President Donald Trump this year have hit demand for China-made products, and slowed production lines across several manufactured items. Slower activity on construction sites and factory production lines has in turn reduced the overall power needs of both those industries, and allowed power generation firms to cut back on production as a result. If a recovery unfolds in the construction and manufacturing sectors going forward, China's overall power needs will increase in tow, and will likely spur a rebound in generation from pollution-emitting fossil fuels. But if China's economy remains chilled by construction debt and tariff worries, the country's use of fossil fuels will remain subdued, which could set the stage for further reductions in power sector emissions. 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/china-cuts-electricity-emissions-record-lows-2025-2025-07-16/

2025-07-16 06:14

Wall Street pulls itself up from the red Europe closes lower Trump says not likely to fire Powell but doesn't rule it out US producer price data unexpectedly unchanged Oil prices pare losses, gold advances but off session highs NEW YORK/PARIS, July 16 (Reuters) - Equity indexes advanced slightly on Wednesday while the dollar fell with U.S. bond yields, as markets calmed after U.S. President Donald Trump said he was "highly unlikely" to fire Federal Reserve Chair Jerome Powell. Markets had turned volatile in late morning trading with stocks losing ground, the dollar selling off sharply, and gold prices spiking on fears Trump was seeking to remove the central bank chief. But investors reversed course after Trump contradicted a Bloomberg report that he was planning to oust Powell. Sign up here. However, the president said he had spoken with some Republican lawmakers about the idea and unleashed fresh criticism against Powell while declining to completely reject the possibility of switching out the Fed chair, whose term is up in May 2026. Powell has faced frequent public criticism from Trump as the central bank has kept interest rates steady while it monitors the inflationary impact from tariffs. The president has railed against Powell for not cutting rates sooner, prompting concern about whether the Fed's independence could be eroded. While the market would respond negatively to Powell's ouster, Gene Goldman, chief investment officer at Cetera Investment Management, noted it would take some time to remove the policymaker, who has just one vote out of 12 on monetary policy changes. But he sees plenty more investor worries. “The markets remain very jittery. We have high valuations, and it's the beginning of earnings season with OK but not great bank earnings," said Goldman. He also pointed to a bearish outlook from Dutch company ASML "ASML's cautious outlook is not a great indicator for the semiconductor industry. And inflation reports have not equivocally given any suggestion that the Fed should cut rates any time soon.” Earlier on Wednesday, data showed U.S. producer were unexpectedly unchanged in June as an increase in the cost of goods due to tariffs on imports was offset by weakness in services. The unchanged reading in the producer price index for final demand last month followed an upwardly revised 0.3% rise in May. This was after Tuesday's U.S. consumer price data for June pointed to higher costs for some goods. "It’s very early innings when determining whether or not and to what extent tariffs are going to impact inflation,” said Don Calcagni, chief investment officer at Mercer Advisors. , opens new tab While investors wait to see where the Trump administration ultimately sets tariff levels, Calcagni noted that inflation numbers are also being muddied by the depletion of goods in stock at companies that had built up higher-than-usual inventories in anticipation of the new import taxes. On Wall Street, the Dow Jones Industrial Average (.DJI) , opens new tab finished up 231.49 points, or 0.53%, at 44,254.78 while the S&P 500 (.SPX) , opens new tab rose 19.94 points, or 0.32%, to 6,263.70 and the Nasdaq Composite (.IXIC) , opens new tab rose 52.69 points, or 0.26%, to 20,730.49. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab rose 0.86 points, or 0.09%, to 921.11. Earlier, the pan-European STOXX 600 (.STOXX) , opens new tab index had closed down 0.57% with the chip sector dragging European equities lower. In currencies, the U.S. dollar was lower but above its lows of the day after the immediate worries about Powell subsided. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, fell 0.3% to 98.29. The euro was up 0.34% at $1.1639 while against the Japanese yen , the dollar weakened 0.71% to 147.81. "What can kill the value of the U.S. dollar, what can absolutely destroy faith in the U.S. dollar, is attacking in any way, shape, or form the independence and authority of the Federal Reserve," said Juan Perez, senior director of trading at Monex USA in Washington. Sterling strengthened 0.28% to $1.3416. Earlier data showed that Britain's annual rate of consumer price inflation unexpectedly rose to its highest in over a year. In Treasuries, the yield on benchmark U.S. 10-year notes fell 3.6 basis points to 4.453%, from 4.489% late on Tuesday while the 30-year bond yield fell 1 basis point to 5.0083%. The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, fell 6.7 basis points to 3.892%, from 3.959% late on Tuesday. "This story keeps churning so understandably markets are nervous," said Kenneth Broux, head of corporate research and rates, at Societe Generale in London referring to worries about Powell's position. "Bond and FX markets do not like the uncertainty. We've had stronger U.S. CPI goods ex-autos just yesterday, so to think that lower rates are the way forward as tariffs seep through consumer prices is not going to reassure." Oil prices edged lower on Wednesday as builds and concerns about wider economic impact from outweighed some signs of increasing demand. U.S. crude settled down 0.21% at $66.38 a barrel while Brent futures fell to $68.52 per barrel, down 0.28%. Gold prices trimmed gains on Wednesday after Trump denied he was planning to fire Powell. Spot gold rose 0.78% to $3,348.20 an ounce after earlier rising as much as 1.6%. https://www.reuters.com/world/china/global-markets-wrapup-1-2025-07-16/

2025-07-16 06:00

Drone attacks damage infrastructure, says regional government The oilfield attacks cut output by up to 150,000 bpd Gulf Keystone Petroleum and DNO suspend operations at key fields No casualties but material damage 'significant' - authorities BAGHDAD, July 16 (Reuters) - Drone attacks for a third day on oilfields in Iraq's semi-autonomous Kurdistan region have slashed crude output by 140,000 to 150,000 barrels per day, two energy officials said on Wednesday, as infrastructure damage forced multiple shutdowns. It was not immediately clear who was behind the attacks, and no group has claimed responsibility. Sign up here. The region's total production was around 285,000 barrels per day (bpd), Iraqi Kurdistan energy officials said. Several oilfields halted operations due to significant infrastructure damage, the Kurdistan region's Ministry of Natural Resources said, adding that the attacks also aimed to threaten the safety of civilian workers in the energy sector. Gulf Keystone Petroleum (GKP.L) , opens new tab said it shut production at Shaikan field, one of the largest oil discoveries in the Iraq's Kurdistan region, due to attacks in its vicinity. "As a safety precaution, GKP has decided to temporarily shut-in production and has taken measures to protect staff. The company's assets have not been impacted," the company said in a statement. Gulf Keystone has a production sharing contract with Iraq's Kurdistan Regional Government (KRG) with an 80% working interest in the license of Shaikan, located around 60 kilometres (37 miles) to the northwest of capital Erbil. "A number of terrorist attacks were carried out by a bomb-dropping drone on the oil fields of Tawke, Peshkabour, and Ain Sifni in the independent administration of Zakho and the district of Shekhan in Duhok province," KRG's ministry of natural resources said. Norwegian oil and gas firm DNO (DNO.OL) , opens new tab, which operates the Tawke and Peshkabour oilfields in the Zakho area that borders Turkey, said it temporarily suspended production at the fields following explosions that caused no injuries. "The damage assessment is underway and the company expects to restart production once the assessment is completed," DNO said. DNO's shares fell around 5% after the attack and were poised for their worst day since June 25. The fields were attacked by three bomb-laden drones, but there were no casualties, only material damage, Kurdistan's counter-terrorism service posted on Facebook. APIKUR, a group of eight oil firms operating in Iraqi Kurdistan, said later on Wednesday that a majority of its members, including those not targeted, have suspended production. "The operators are assessing damage to production and other field facilities," APIKUR said. The Ain Sifni oilfield, operated by U.S.-based Hunt Oil, was also attacked later in the Dohuk region of northern Iraq. There were no further details on the attack. On Tuesday, a drone attack halted production at the Sarsang oilfield in Iraq's Kurdistan region hours before its U.S. operator signed a deal with Iraq to develop another field. Iraqi Kurdistan security sources said initial investigations suggested the drone came from areas under the control of Iran-backed militias. On Monday, two drones fell on the Khurmala oilfield near Erbil in Iraqi Kurdistan, damaging water pipes at the field. https://www.reuters.com/business/energy/oilfields-iraqi-kurdistan-attacked-by-drones-third-time-this-week-2025-07-16/

2025-07-16 05:56

DUBAI, July 16 (Reuters) - A foreign tanker was seized by Iran in the Gulf of Oman for smuggling 2 million litres of fuel, the chief justice of Hormozgan province said on Wednesday, according to Iran's semi-official Mehr news agency. "During the continuous process of monitoring and surveilling suspicious fuel smuggling movements in the Gulf of Oman, officers inspected a foreign tanker due to its lack of legal documents regarding its cargo and seized it on charges of carrying 2 million litres of smuggled fuel," Hormozgan's Chief Justice Mojtaba Ghahremani said, according to the report. Sign up here. The judiciary official added that 17 crew members were arrested and that a judicial case was opened at the Jask county prosecutor's office. There was no additional information regarding the name of the tanker or the flag to which it is registered. Iran, which has some of the world's lowest fuel prices due to heavy subsidies and the plunge in the value of its national currency, has been fighting rampant fuel smuggling by land to neighbouring countries and by sea to Gulf Arab states. "The actions of fuel smugglers, who in coordination with foreigners, attempt to plunder national wealth will not remain hidden from the judiciary and punishment of perpetrators, if their crimes are proven, will be without leniency," Ghahremani said, according to the report. https://www.reuters.com/world/middle-east/iran-seizes-foreign-tanker-smuggling-2-million-litres-fuel-2025-07-16/

2025-07-16 05:36

Trump denies media reports he will fire Fed Chair Powell Producer prices unchanged in June Traders price in rising odds of rate hikes this year NEW YORK, July 16 (Reuters) - The U.S. dollar fell but rose off its lows on Wednesday after U.S. President Donald Trump denied news reports that he is planning to fire Federal Reserve Chair Jerome Powell. Bloomberg reported that the president is likely to fire Powell soon. A source also told Reuters that Trump is open to the idea of firing Powell and polled some Republican lawmakers on firing Powell and received a positive response. Sign up here. But Trump said that the reports are not true. "I don't rule out anything, but I think it's highly unlikely unless he has to leave for fraud," Trump said, a reference to recent White House and Republican lawmaker criticism of cost overruns in the $2.5 billion renovation of the Fed's historic headquarters in Washington. Removing Powell before his term ends in May would be negative for the dollar as it would undermine credibility in the U.S. financial system and the dollar as a safe-haven currency. "What can kill the value of the U.S. dollar, what can absolutely destroy faith in the U.S. dollar, is attacking in any way, shape, or form the independence and authority of the Federal Reserve," said Juan Perez, senior director of trading at Monex USA in Washington. Trump has railed against Powell for months for not easing rates, which he says should be at 1% or lower. The dollar index , which measures the greenback against a basket of currencies, including the yen and the euro, was last down 0.25% on the day at 98.34, with the euro up 0.3% at $1.1633. Against the Japanese yen , the dollar weakened 0.7% to 147.82. Sterling strengthened 0.24% to $1.3411. If Trump were to fire Powell the markets would likely see a larger negative reaction in the dollar, said Francesco Pesole, FX strategist at ING in London. "Euro/dollar is at $1.17 and should be trading higher on this because the implications are massive. Markets are still not fully pricing this all in. You would expect that if Powell is removed today then the Fed cuts in September," he said. The single currency got as high as $1.1721 on Wednesday. Fed funds futures traders are now pricing in 47 basis points of cuts by year-end, up from 44 basis points before the news reports. The dollar gained earlier against the euro as traders bet that the U.S. central bank may be less likely to cut rates two times this year following an uptick in consumer prices in June, even though producer price inflation data on Wednesday was steady. U.S. producer prices were unexpectedly unchanged in June as an increase in the cost of goods because of tariffs on imports was offset by weakness in services. Tuesday's release showed U.S. consumer prices increased by the most in five months in June amid higher costs for some goods, suggesting that Trump's tariffs were starting to have an impact on inflation. "Yesterday's reaction to the inflation data was very positive for the U.S. dollar overall," said Eric Theoret, FX strategist at Scotiabank in Toronto. Investors continue to focus on tariffs ahead of an August 1 deadline when many trading partners face higher trade levies. Trump said on Wednesday the U.S. will probably "live by the letter" on tariffs with Japan and may have another trade deal coming up with India, following his announcement of an accord with Indonesia on Tuesday. In Japan, investors are focused on a potential power shift in upper house elections this weekend that could strain already frail finances, with long-dated yields soaring to all-time highs as the vote nears. In cryptocurrencies, bitcoin gained 2.82% to $119,761 but held below a record high of $123,153 reached on Monday. https://www.reuters.com/world/middle-east/dollar-drops-choppy-trading-trump-denies-plans-fire-feds-powell-2025-07-16/

2025-07-16 04:32

A look at the day ahead in European and global markets from Kevin Buckland The investing world will be watching U.S. factory inflation on Wednesday, after consumer price data pulled Wall Street back from all-time highs overnight, with Fed predictions of tariff-induced inflationary effects starting to be realized. Sign up here. Both the S&P 500 (.SPX) , opens new tab and Nasdaq (.IXIC) , opens new tab - and by extension, MSCI's world equities index (.MIWD00000PUS) , opens new tab - retreated from record peaks after traders shaved back bets of U.S. rate cuts this year as prices rose for things such as coffee and couches, while staying steady for tariff-exempted (for now) items such as cars. That swung the spotlight squarely onto producer price data due later today, which could reveal an even bigger building of price pressures, because businesses may still be holding back on passing higher costs to consumers. This validates Fed Chair Jay Powell's repeated assertion that an expected emergence of tariff-led inflation uptick this summer is cause to hold off on further interest rate cuts for now. Traders were listening, trimming back bets to 43 basis points of cuts over the rest of the year, from closer to 50 basis points earlier in the week. President Donald Trump's reading of the data was different though, as he took to his Truth Social platform to post, "Consumer Prices LOW. Bring down the Fed Rate, NOW!!!" Trump has repeatedly railed against the Fed for not cutting rates, even calling for Powell's resignation, which has fuelled concerns that the U.S. President aims to put the Fed under his thumb. Powell's tenure ends in May next year, but he has a seat on the Board of Governors until January 2028. Trump said Tuesday that Treasury Secretary Scott Bessent could be a candidate to replace Powell, but "because I like the job he's doing" currently, he may not end up as a contender. Bessent, meanwhile, said in an interview on Bloomberg Surveillance that a "formal process" is already starting to identify the next Fed Chair. As if that wasn't enough to keep investors busy, the U.S. earnings season has also just gotten underway. JPMorgan Chase (JPM.N) , opens new tab and Citigroup (C.N) , opens new tab beat expectations on Tuesday, but were met with a mixed market response. Bank earnings due Wednesday include Goldman Sachs, Morgan Stanley and Bank of America, while Johnson & Johnson will give more of a snapshot of how consumers are faring. The corporate calendar by contrast is relatively quiet in Europe, where stock futures are pointing to a mixed open, and Britain's FTSE (.FTSE) , opens new tab reopens after hitting an all-time peak on Tuesday only to then end the day down 0.7%, its biggest fall since post-"Liberation Day" tariff turmoil in early April. The main event will be UK consumer price data, with the consensus among economists for headline inflation to hold steady at 3.4%. Bank of England policymaker Catherine Mann said on Tuesday that inflation pressures remained a challenge despite a fall in the pace of pay growth in recent months. Key developments that could influence markets on Wednesday: - UK consumer price index (CPI) for June. - U.S. earnings: Morgan Stanley, Goldman Sachs, Bank of America, Johnson & Johnson. - U.S. industrial production, producer price index (PPI). - U.S. Federal Reserve officials speaking, including Governor Michael Barr. Trying to keep up with the latest tariff news? Our new daily news digest offers a rundown of the top market-moving headlines impacting global trade. Sign up for Tariff Watch here. https://www.reuters.com/world/europe/global-markets-view-europe-2025-07-16/