2025-06-27 22:18
June 28 (Reuters) - If U.S. President Donald Trump is genuine about wanting a nuclear deal with Iran, he should put aside "the disrespectful and unacceptable tone" towards Supreme Leader Ayatollah Ali Khamenei and "stop hurting his millions of heartfelt followers," Foreign Minister Abbas Araqchi said in a post on X early on Saturday. Sign up here. https://www.reuters.com/world/middle-east/trump-should-stop-disrespectful-tone-against-khamenei-if-he-wants-deal-iranian-2025-06-27/
2025-06-27 22:14
Steel dumping from Europe and Asia impacts Canadian competitiveness Canada's steel industry faces potential mass layoffs Finance Ministry defends measures as strategic and comprehensive TORONTO, June 27 (Reuters) - Canadian steel industry representatives told government officials in a meeting this week that their measures to protect the industry from the consequences of U.S. tariffs are insufficient, two of the representatives who attended the meeting told Reuters. On Thursday, steel producers met with Patrick Haley, assistant deputy minister for trade and finance, and other officials from the ministry, telling them the measures announced earlier this month do not protect the industry from steel dumping and could cause mass layoffs, the representatives said. Sign up here. U.S. President Donald Trump increased import duties on steel and aluminum to 50% from 25% earlier this month. Canada is the top seller of metals to the United States. In response, Canada announced a raft of measures, including establishing new tariff-rate quotas of 100% of 2024 levels on imports of steel products from non-free trade agreement partners. Industry representatives at the meeting asked the government to extend tariff quotas to all countries with unfair trade practices, even if they have free trade agreements. Europe and Asia have started diverting their products to Canada to avoid U.S. tariffs, making domestic steel uncompetitive, they said. "We don't think the measures announced meet our needs under this dire time," Catherine Cobden, President and CEO of the Canadian Steel Producers Association, told Reuters. Cobden attended the meeting with finance ministry officials on Thursday. The Canadian Steel Producers Association said in a separate statement on Thursday that, in its current form, the tariff-rate quota will do little to support its industry. Canada's steel industry has laid off 1,000 workers since the first U.S. tariffs in March, and more layoffs could be coming, the association said. Keanin Loomis, president of the Canadian Institute of Steel Construction, which includes steel manufacturers, fabricators, and constructors, said that Thursday's government meeting was heavily steel producers-focused, noting that finished steel products imported to Canada have no tariff protection. Loomis also attended the meeting. In a text response to Reuters, the Canadian Finance Ministry said that the measures it announced represent a comprehensive and strategic package to defend producers and workers, and were a first step. Prime Minister Mark Carney has threatened to increase counter-tariffs on U.S.-produced steel and aluminum if Canada does not reach a broader trade deal with Trump by July 21. Trump on Friday abruptly cut off trade talks with Canada over its new tax targeting U.S. technology firms. "These are temporary and calibrated measures that could be expanded depending on the outcome of ongoing discussions with the United States. We are prepared to adjust our response as needed," a spokesperson for the finance minister said. https://www.reuters.com/world/americas/canadas-steel-producers-tell-government-its-tariff-protection-measures-arent-2025-06-27/
2025-06-27 22:04
European suppliers receive enough licences to avoid disruptions, but many permits still pending China's export restrictions cause 75% drop in rare earth magnet exports U.S.-China deal aims to expedite rare earth shipments to U.S. companies BERLIN/BEIJING, June 27 (Reuters) - The threat of mass shutdowns across the automotive supply chain is fading as Chinese rare earth magnets begin to flow, though automakers and suppliers say production plans still face uncertainties and a continued risk of shortages. European suppliers have received enough licences to avoid the widespread disruptions predicted earlier this month but hundreds of permits remain pending, said Nils Poel, head of market affairs at supplier association CLEPA. Sign up here. The rate of issuance is "accelerating" and has risen to 60% from 25%, he said, but cases where the end users are based in the United States, or where products move through third countries like India, are taking longer or not being prioritised. "Overall the feeling is that we probably will still have production in July and that the impact will be manageable," he said. "Maybe here and there a production line will be affected, but we have avoided that for the moment." On Friday, Ford (F.N) , opens new tab CEO Jim Farley said during an appearance in Colorado that the company has had to shut down factories over the past three weeks because of magnet shortages, without elaborating. Volkswagen (VOWG.DE) , opens new tab said in a statement to Reuters its supply of rare earth components was stable while rival Stellantis (STLAM.MI) , opens new tab said it had addressed its immediate production concerns. China restricted exports of seven rare earths and related magnets in April in retaliation for U.S. tariffs. Three months later there remains huge uncertainty about how it intends to police its opaque and complex export licensing system. Since the restrictions were imposed, rare earth magnet exports from China have fallen roughly 75%, forcing some automaker production lines to halt in Asia, Europe and the United States. FROM 'FULL PANIC' TO 'BARE MINIMUM' The White House said on Thursday it had signed a deal with China to speed up rare earth approvals without providing details. Beijing said hours later both parties had confirmed details of the deal struck in London earlier this month, which was meant to resolve the rare earth issue, and it would process export licences in accordance with the law. Neither party detailed any changes to the existing export licensing system. U.S. Treasury Secretary Scott Bessent said in an interview with Fox Business Network on Friday that, under the agreement announced on Thursday, rare earth shipments to the United States from China would be expedited to all companies that have previously received them on a regular basis. "I am confident now... the magnets will flow," Bessent said. "This is a de-escalation." Two weeks ago the car industry was in a "full panic," but licence approvals by China have sped up and there is now less threat of a sudden stop, according to an executive at a leading U.S. automotive supplier and a source with knowledge of the supply chain at a major European carmaker. Both asked not to be named because of the sensitivity of the issue. China is approving the "bare minimum" of critical licences for European firms to avoid production stoppages, a European official told Reuters, also speaking on condition of anonymity. U.S. magnet maker Dexter Magnetic Technologies, which has defence clients, among others, has received just five of 180 licences since April, CEO Kash Mishra told Reuters, adding those were intended for non-defence sectors. "It's an extended delay," he said. "It's 45 days trying to get the paperwork right for the supplier, and then it's 45 more days or so before any licences are granted." https://www.reuters.com/world/china/chinas-rare-earths-are-flowing-again-not-freely-2025-06-27/
2025-06-27 21:27
WASHINGTON, June 27 (Reuters) - U.S. President Donald Trump said on Friday he would "love" if Federal Reserve Chair Jerome Powell were to resign, and the president also said he wanted interest rates cut to 1%. KEY QUOTES "I'd love him to resign if he wanted to, he's done a lousy job," Trump said, also labeling the Fed chair as "stupid." Sign up here. "I think we should be paying 1% right now, and we're paying more because we have a guy who suffers from, I think, Trump Derangement Syndrome," Trump added. WHY IT'S IMPORTANT Trump has long attacked the Federal Reserve chair over interest rates that the U.S. president wants lowered. Fed chairs have long been seen as insulated from presidential dismissal for reasons other than malfeasance or misconduct, but Trump has threatened to test that legal premise with frequent threats to fire Powell. Powell's term ends in May 2026, and Trump is expected to nominate a successor in the coming months. CONTEXT Trump said he will name as successor to Powell someone who will lower rates. Last week, the Fed decided to leave short-term borrowing costs in the 4.25%-4.50% range. https://www.reuters.com/business/finance/trump-says-he-wants-interest-rate-cut-1-would-love-if-powell-resigned-2025-06-27/
2025-06-27 20:35
ORLANDO, Florida, June 27 (Reuters) - - TRADING DAY Making sense of the forces driving global markets Sign up here. By Jamie McGeever, Markets Columnist I'd love to hear from you, so please reach out to me with comments at [email protected] , opens new tab. You can also follow me at @ReutersJamie and @reutersjamie.bsky.social. Just a heads up, Trading Day will be in the capable hands of Lewis Krauskopf next week and Alden Bentley the following week, while I take some time off to recharge the batteries. Back on July 13. Another extraordinary week ended on Friday with the S&P 500 and Nasdaq hitting all-time highs as investors ramped up bets that U.S. interest rates will soon fall, a stunning turnaround from the post-'Liberation Day' tariff gloom of early April. Several developments this week fed into the rate cut narrative - the Iran-Israel ceasefire, tumbling oil prices, soft U.S. economic data, dovish comments from some Fed officials, and renewed pressure from President Donald Trump on the Fed to ease. Fed Chair Jerome Powell pushed back against suggestions rates could be cut as soon as July, arguing that the impact of tariffs should be assessed first, and the consensus among the Fed's 19 rate-setters is to hold the line too. But traders are now leaning towards three quarter-point rate cuts this year. Progress on trade is also boosting investor sentiment. Trump said a deal between the US and China had been signed, but did not provide details, and Treasury Secretary Scott Bessent said the two countries have resolved issues surrounding shipments of rare earth minerals and magnets to the US. That said, trade optimism was dented on Friday after Trump abruptly cut off trade talks with Canada over its new tax on U.S. technology firms, calling it a "blatant attack" and saying he will set a new tariff rate on Canadian goods next week. The most significant market move of the week, however, was not in equities but in currencies. The dollar continued its decline, and is now down more than 10% this year. That's its worst first-half performance of any year in more than 50 years. It should be remembered, however, that the dollar started the year at extremely expensive levels, so some adjustment was always likely. This is proving to be a pretty severe adjustment, one which markets and policymakers appear to be relaxed about. For now. This Week's Key Market Moves Chart of the Week Self-explanatory really. When the world's reserve currency has its steepest January-June decline since the era of free-floating exchange rates began over half a century ago, something major is underway. How big remains to be seen. But if the Trump administration wanted a weaker currency, it can't complain. Here are some of the best things I read this week: What could move markets on Monday? 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. Trading Day is also sent by email every weekday morning. Think your friend or colleague should know about us? Forward this newsletter to them. They can also sign up here. https://www.reuters.com/business/autos-transportation/global-markets-trading-day-graphic-2025-06-27/
2025-06-27 20:31
June 27 (Reuters) - The S&P 500 and the Nasdaq Composite hit all-time highs on Friday as renewed AI enthusiasm and the prospect of a looser monetary policy powered a recovery in U.S. stocks from months-long rout. The benchmark index (.SPX) , opens new tab rose 0.59% to 6,178.80 points, surpassing the previous peak of 6,147.43 on February 19, while the tech-heavy Nasdaq gained 0.59% to 20,299.72 points, exceeding its record high of 20,204.58 on December 16. Sign up here. Markets rallied this week as an upbeat forecast from chipmaker Micron (MU.O) , opens new tab revived investor confidence on artificial intelligence, while Nvidia (NVDA.O) , opens new tab inched closer to $4 trillion market capitalization after reclaiming its position as the world's most valuable company. The AI bellwether (NVDA.O) , opens new tab rose 1.4% and Advanced Micro Devices (AMD.O) , opens new tab 1.6%, while megacaps Meta (META.O) , opens new tab added 0.7% and Amazon.com (AMZN.O) , opens new tab 1.15%. Risk appetite also benefited from a U.S.-brokered ceasefire to a 12-day air battle between Israel and Iran that sparked a jump in crude prices and raised worries of higher inflation. Dovish remarks from Federal Reserve policymakers have aided sentiment, while a string of soft economic data and expectations that Trump would replace U.S. Federal Reserve Chair Jerome Powell with somebody more dovish next year have pushed up rate-cut bets. Trump's April 2 "reciprocal tariffs" on major trading partners and their chaotic rollout had put the S&P 500 within a striking distance of confirming a bear market when it ended down 19% from its February 19 record closing high. The Nasdaq had tumbled 26.7% from its previous peak, marking a bear market days after Trump's "Liberation Day" on April 2. Since then, U.S. trade deals with the UK and China have firmed up market expectations for more such agreements, fueling hopes that a global recession could be avoided. "The two key pillars to this market, the consumer and their potential to spend, and corporate America are very resilient. And that's given this market confidence to get back to all-time highs," said David Wagner, head of equities and portfolio manager at Aptus Capital Advisors. The S&P 500 has surged more than 23.5% and the Nasdaq about 32% since their recent lowest close on April 8, largely powered by a handful of megacap stocks such as Microsoft (MSFT.O) , opens new tab, Nvidia (NVDA.O) , opens new tab, Meta Platforms (META.O) , opens new tab and Amazon (AMZN.O) , opens new tab. If the Nasdaq closes above the December 16 record close at 20,173.89, it would be the end of the bear market and start of a new bull market, according to common definitions. A bear market is defined as a 20% decline from a record high close, on a closing basis. Both the Nasdaq and S&P 500 have gained 5% this year. The blue-chip Dow (.DJI) , opens new tab has risen about 2.8% this year and remains about 3% below its all-time peak. https://www.reuters.com/business/finance/sp-500-nasdaq-hit-record-highs-renewed-ai-bets-rate-cut-hope-2025-06-27/
