2025-07-16 03:14

MUMBAI, July 16 (Reuters) - The Indian rupee is set to open weaker on Wednesday after June U.S. inflation data hinted at tariff-driven price pressures, prompting markets to scale back bets of Federal Reserve rate cuts and pushing the dollar and U.S. yields higher. The 1-month non-deliverable forward indicated an open in the 85.96-85.98 range versus 85.81 on Tuesday. The rupee has repeatedly avoided breaching the 86 level the last three sessions. Sign up here. The question is whether the USD/INR can finally break through the 86–86.10 zone and push higher, said a currency trader at a Mumbai-based bank. "There's little doubt that stop losses - both corporate and interbank - will be triggered if we see a decisive break past 86." DOLLAR CLIMBS, U.S. YIELDS RISE The dollar index rose 0.5% to its highest in three weeks on Tuesday, while the 30-year Treasury yield inched past 5% after U.S. inflation data indicated evidence of tariff impacts. Prices increases across an array of goods drove inflation higher in June in what economists see as evidence of the Trump administration's increasing import taxes passing through to consumers. U.S. consumer prices rose 0.3% in June, a roughly 3.5% annual rate, after a 0.1% increase in May. In its daily market update, Morgan Stanley said that U.S. inflation is beginning "to show signs of tariff pressure". Markets have digested tariff inflation effects and appear to "seemingly brace for the Fed to remain on hold for longer", it added. Odds of a Fed rate cut in September fell after the data, with markets now pricing in 44 basis points of cuts this year, down from more than 50 bps before the data. Expectations of a July cut, already minimal, declined further. "The increased uncertainty about tariffs and the extension of the trade talks deadline to 1 August suggest the Fed will need a few more months of data before cutting the policy rate," ANZ Bank said. KEY INDICATORS: ** One-month non-deliverable rupee forward at 86.08; onshore one-month forward premium at 10 paise ** Dollar index up at 98.60 ** Brent crude futures up 0.3% to $68.9 per barrel ** Ten-year U.S. note yield at 4.48% ** As per NSDL data, foreign investors sold a net $91.8 million worth of Indian shares on July 14 ** NSDL data shows foreign investors sold a net $30.7 million worth of Indian bonds on July 14 https://www.reuters.com/world/india/tariff-tinged-us-inflation-boosts-dollar-set-weigh-rupee-2025-07-16/

2025-07-16 02:06

Trump has railed against Powell for not lowering interest rates Bessent says formal process under way Many good candidates, Bessent says Trump says cost overruns on Fed project could be firing offense WASHINGTON, July 15 (Reuters) - President Donald Trump said on Tuesday that Treasury Secretary Scott Bessent could be a candidate to replace Federal Reserve Chairman Jerome Powell, but suggested that might not happen. After landing at Joint Base Andrews following a trip to Pittsburgh, Trump was asked if Bessent was his top choice to replace Powell, whose term ends in May 2026. Sign up here. "He's an option, and he's very good. Well, he's not, because I like the job he's doing, right?" Trump told reporters. Trump has railed against Powell for months for not lowering U.S. interest rates and has repeatedly urged him to resign. On Tuesday, Trump said cost overruns on a $2.5 billion renovation of the Fed's historic Washington headquarters could amount to a firing offense. "I think it sort of is," Trump said, when asked if he could fire the Fed chair over the renovation cost overruns, which have been sharply criticized by Trump administration officials. The president cannot fire Powell over a monetary policy dispute. Trump had originally appointed Powell, a fellow Republican, during his first time in office, and he was reappointed to a second term as Fed chief by Democratic President Joe Biden, With the unemployment rate low and inflation above the Fed's 2% target, U.S. central bank officials have been reluctant to cut interest rates from the current 4.25% to 4.5% range until it is clear that Trump's tariff policies won't lead to a fresh surge in prices. U.S. data on Tuesday showed that consumer prices rose across an array of goods from coffee to audio equipment to home furnishings in what economists say is evidence that the increasing import duties are being passed through to consumers. Overall consumer prices rose 0.3% in June, a roughly 3.5% annual rate, after a 0.1% increase in May. Other people under consideration to replace Powell include former Fed Governor Kevin Warsh and Trump's top economic adviser, Kevin Hassett. Bessent, who has also played a key role in Trump's trade negotiations with a host of countries, told Bloomberg Surveillance on Tuesday that a "formal process" was already starting to identify a potential successor to Powell. "There are a lot of great candidates, and we’ll see how rapidly it progresses," Bessent said. He said it would be confusing for Powell to remain at the Fed after his term as chair ends in May 2026. Powell's term as Fed governor extends until January 31, 2028. Trump administration officials argue that a tax bill nearing passage in Congress will boost private sector investment and strengthen the U.S. economy, and insist that while tariff increases could result in a one-time bump in prices, they should not drive up inflation over the longer term. https://www.reuters.com/world/us/trump-bessent-an-option-replace-fed-chair-but-i-like-job-hes-doing-2025-07-15/

2025-07-16 01:57

July 15 (Reuters) - U.S. President Donald Trump is expected to sign an executive order in the coming days designed to help make private-market investments more available to U.S. retirement plans, the Wall Street Journal reported , opens new tab on Tuesday, citing people familiar with the matter. The Trump order would instruct the U.S. Labor Department and the Securities and Exchange Commission to provide guidance to employers and plan administrators on including investments like private assets in 401(k) plans, according to the WSJ report. Sign up here. The White House declined to comment on the report. Bryan Corbett, president and CEO of MFA, a trade association that represents alternative asset management options such as private credit and hedge funds, hailed the expected order. "Expanding access to alternative investments in 401(k) retirement plans will provide more Americans with the diversification and investment options needed to build wealth and save for successful retirement," he said in a statement. Private-market investments, often referred to as private assets, include private equity, venture capital, real estate and hedge funds. These assets are not traded on public exchanges and are typically characterized by higher risk and potentially higher returns compared to traditional public-market investments like stocks and bonds. https://www.reuters.com/world/us/trump-order-help-open-up-retirement-plans-private-markets-wsj-reports-2025-07-15/

2025-07-16 00:53

July 15 (Reuters) - Canadian gold and copper miner Aura Minerals (ORA.TO) , opens new tab said on Tuesday it plans to raise about $196.4 million from its U.S. initial public offering. The company had said last week that it was preparing to list its shares on the Nasdaq. It said on Tuesday that it plans to sell 8.1 million shares in the offering. Sign up here. Many foreign companies list in the U.S. to secure higher valuations and tap deeper capital markets. Aura said that it intends to use the proceeds from the IPO for exploration activities and to provide incremental liquidity and financial flexibility to support the execution of its current strategic growth initiatives. Founded in 1946, the gold and copper mining company is focused on project development and operations in the Americas. BofA Securities and Goldman Sachs are serving as global coordinators for the offering, while BTG Pactual and Itau BBA are acting as joint bookrunners. https://www.reuters.com/world/americas/canadas-aura-minerals-plans-raise-over-196-million-us-ipo-2025-07-16/

2025-07-16 00:50

WASHINGTON, July 15 (Reuters) - U.S. President Donald Trump said on Tuesday that a trade agreement with Vietnam was nearly complete. Trump told reporters at Joint Base Andrews near Washington that he could release details of the Vietnam trade agreement, but did not think it was necessary. Sign up here. The U.S. president announced earlier this month that he had struck a preliminary trade deal with the Communist country, which would cut planned U.S. tariffs on imports from Vietnam to 20% from the 46% level he had threatened in April. At the time, Trump also said goods that Washington deemed to be illegally transshipped through Vietnam to other countries would be subject to a 40% levy. The agreement has not been finalized and details have not been released, leaving questions over how Washington will define an illegal transshipment and how much value Vietnam must add to imported products to avoid the 40% tariff. It also remains unclear which products would fall under Trump's 20% tariff. Vietnam has not confirmed the specific tariff rates, celebrating what it described as an agreement on a joint statement about a trade framework. Asked if he planned to release details of the trade pact with Vietnam, Trump told reporters, "Well, I might. I don't think it matters how much you release of the deal. We have a Vietnam deal, and I would say that that deal is being pretty well set." Vietnam has nearly tripled its exports to the United States since the start of the U.S.-China trade war in 2018, when the first Trump administration imposed wide-ranging tariffs on Beijing, pushing some manufacturers to move production south. At the same time, Vietnam vastly expanded imports from China, with their inflow almost exactly matching the value and swings of exports to the United States, each totalling around $140 billion in 2024, data from the U.S. and Vietnam show. https://www.reuters.com/business/trump-says-vietnam-trade-deal-is-pretty-well-set-2025-07-16/

2025-07-16 00:04

Indigenous review is crucial for Codelco-SQM lithium deal in Chile Local groups demand new methodology and more information Court orders state agency Corfo to respond in 15 days SANTIAGO, July 15 (Reuters) - Two Indigenous groups in northern Chile have asked a local court to suspend a state-led community review process that is required for a lithium partnership between copper giant Codelco and lithium miner SQM (SQMA.SN) , opens new tab, according to legal documents reviewed by Reuters. The Indigenous community of Coyo and the Atacameno Association of Irrigators and Farmers of San Pedro de Atacama each independently filed legal challenges last week with a Chilean appeals court in the Antofagasta region, accusing Chilean economic development agency Corfo of not properly carrying out a consultation process to seek their input on the partnership. Sign up here. The process is one of the final conditions for a deal to go into effect in which state-run Codelco will take a majority stake in SQM's lithium mining operations in the Atacama salt flat. The Coyo community and the Atacameno Association of Irrigators and Farmers, which has Indigenous members, said they needed more information and time to be able to provide informed consent on the plan. The Antofagasta court on Friday accepted their challenges, according to a court document. It ordered Corfo to respond to the allegations within 15 days, and asked Codelco and SQM to provide comments. Corfo told Reuters that the consultation process was still in progress. "The Indigenous consultation process with the Atacama Indigenous organizations is moving forward and has been carried out in accordance with the regulations," the agency said in a statement. Codelco declined to comment, while SQM did not immediately reply to a request for comment. The Indigenous consultation, which was led by Corfo and included a few dozen community groups located around the Atacama salt flat, was due to conclude around late July. SQM and Codelco are separately holding talks with communities near the salt flat to discuss a model for Indigenous oversight over lithium extraction. The Coyo community and Atacameno Association of Irrigators and Farmers both asked the court to suspend the process until a new methodology for the community review could be implemented, and more information provided. Both groups said Corfo had not provided enough detail about the proposed contract between Codelco and SQM and argued that the consultation's timeline between November 2024 and July 2025 was too fast to allow for detailed analysis. They also said Corfo at several points did not act in good faith, and did not meet the standards set out by the International Labour Organization, a U.N. agency. "This situation directly affects the fundamental rights of the Community by limiting its influence over decisions that impact its territory, environmental surroundings, and collective rights, thereby violating constitutional guarantees," the Coyo community said in its court filing. https://www.reuters.com/world/americas/indigenous-groups-ask-chile-court-pause-community-review-codelco-sqm-lithium-2025-07-16/