2025-06-27 12:10

COPENHAGEN, June 27 (Reuters) - Shipping company Maersk (MAERSKb.CO) , opens new tab said on Friday it had decided to resume vessel calls at Israel's Haifa port. "With the prospect of current cease-fire agreement bringing de-escalation to the conflict, we have decided to resume vessel calls to the Port of Haifa, and acceptance for both import and export cargo is now open," Maersk said in a statement. Sign up here. Maersk last Friday said it had temporarily paused vessel calls at Haifa port, amid Israel's conflict with Iran. https://www.reuters.com/world/middle-east/maersk-resumes-haifa-port-calls-2025-06-27/

2025-06-27 11:47

Heads of Fed, ECB, BoJ, BoE and BoK meet Investors await comments on trade, dollar status FRANKFURT, June 30 (Reuters) - A million-dollar question will hang over the world's top central bankers when they meet in Sintra, Portugal, from Monday evening: Is the monetary system centred on the U.S. currency beginning to unravel? The central bank heads of the United States, the euro zone, Britain, Japan and South Korea will also have a chance to give their views on how global trade tensions and war in the Middle East are affecting the outlook for inflation and growth at the European Central Bank's annual get-together. Sign up here. But with inflation seemingly under control in most countries, the much deeper issue likely to permeate their discussions is: Could U.S. President Donald Trump's protectionist and unpredictable economic policies bring an end to the system that has ruled global finance for 80 years? "Like everybody else, they are struggling to figure out what kind of world we're heading into," said BNP Paribas chief economist Isabelle Mateos y Lago, who will also attend the forum in the picturesque hill town near Lisbon. "They've probably realised we're not going to get any answers anytime soon. And so the question is: How do you run monetary policy in that kind of environment?" Investors will hope to get some clues when Fed chair Jerome Powell, ECB President Christine Lagarde and the governors of the central bank of Japan, Britain and South Korea sit down for a panel discussion at the ECB's Forum on Central Banking on Tuesday afternoon. Among them, Powell will probably be in the hottest seat. He has been under intense pressure from Trump to cut interest rates but he has so far resisted. Any sign that the Fed's independence from the White House is under threat could erode the dollar's status as the world's currency of choice for trading, saving and investing. With his position bolstered by a recent U.S. Supreme Court ruling, Powell is likely to stick to his guns. But he faces an increasingly divided Federal Open Market Committee. Trump may also name Powell's successor well before his term expires next May, potentially undermining Powell's message. "A successor perceived by the market to be more open to accommodating Trump's wishes...risks damaging the independence of the Fed in setting policy," economists at Investec wrote. These fears have driven the dollar down to an almost four-year low of $1.17 against the euro in recent months. EURO'S MOMENT? ECB President Christine Lagarde will be in a relatively novel position for any chief of the euro zone's central bank: promoting the single currency as a bastion of stability. While her predecessor Mario Draghi faced speculation about a collapse of the euro until only a few years ago, Lagarde is capitalising on the dollar's woes to promote "euro's moment". If pessimism about the single currency proved overdone a decade ago, economists -- and Lagarde herself -- are adamant the European Union has its work cut out if it is to elevate the euro from its status as distant second in the global currency chart. The EU, still more a confederation of states than anything resembling a union, is widely seen as needing greater financial, economic and military integration before it can challenge the dollar's status. A net 16% of 75 central banks surveyed by OMFIF said they plan to increase euro holdings over the next 12 to 24 months, making it the most in-demand currency but still far less popular than gold. "I'm more optimistic about what's happening in Europe than I've been in a long time, but there's no guarantee of success," BNP Paribas' Mateos y Lago said. The central bankers of South Korea, Japan and Britain are likely to face some tricky questions of their own. The Bank of Japan is becoming increasingly cautious about raising interest rates -- despite some internal qualms and sticky food-price inflation -- due to the expected impact of U.S. tariffs. The Bank of Korea, which had been fearing a flood of cheap Chinese goods, could be forced to end its current easing cycle due to a sudden upswing in the property market. The Bank of England, where three of nine policymakers voted for a cut earlier this month, is also trying to work out whether signs of a slowdown in the labour market will ease still-strong inflation pressures from fast pay growth. "You start to see a lot more division in terms of voting and amongst the economists," KBRA’s European Macro Strategist Gordon Kerr said. "I think everybody just needs to be paying attention and be ready to react." https://www.reuters.com/business/finance/dollar-question-hovers-over-top-central-bankers-meeting-sintra-2025-06-30/

2025-06-27 11:38

EU due to propose 2040 climate goal next week Denmark will lead EU negotiations on the goal Facing pushback from countries concerned by cost COPENHAGEN, June 27 (Reuters) - European nations should not halt the continent's green transition, Denmark's climate minister told Reuters, as his country prepares to lead EU negotiations on a new climate target amid a backlash from some governments concerned about its cost. The European Commission plans to propose a new 2040 climate target next week to slash EU emissions by 90% compared with 1990 levels, but faces pushback from countries including Poland and France which are worried that this aim is too high. Sign up here. Lars Aagaard, energy and climate minister for Denmark, said in an interview that short-term challenges - including budgets stretched by increased military spending - must not distract from Europe's need to switch to green energy. "The answer to Europe's competitiveness is that we transition to using electricity for more things. It's that we can produce it ourselves. We can do that with renewable energy. We can do it with nuclear power," Aagaard said. "It's not a solution for the climate, nor the security challenge, to halt the (green) transition in Europe," he added. Denmark takes over the EU's six-month rotating presidency in July and will lead negotiations on the 2040 goal, at a time when Europe is sharply raising defence spending following Russia's full-scale invasion of Ukraine. The EU's green transition and its race to re-arm are taking place against a "grim background," Aagaard said, citing geopolitical tensions. "It's not a celebration that Europe has to rearm militarily. It's because we are threatened. And it's not a celebration that we have to go green. Climate change is also serious," he said. The European Union has rolled back a series of green policies this year, trying to contain reactions from member countries and struggling industries over environmental rules. The 2040 goal will aim to keep EU countries on track between their 2030 emissions target and a 2050 net zero goal. https://www.reuters.com/sustainability/cop/denmark-warns-eu-against-halting-green-transition-2025-06-27/

2025-06-27 11:27

Executive orders could target grid connection delays, offer federal land for data centers - sources White House to unveil AI Action Plan on July 23 Measures aimed at addressing massive power demand growth for data centers WASHINGTON, June 27 (Reuters) - The Trump administration is readying a package of executive actions aimed at boosting energy supply to power the U.S. expansion of artificial intelligence, according to four sources familiar with the planning. Top economic rivals U.S. and China are locked in a technological arms race and with it secure an economic and military edge. The huge amount of data processing behind AI requires a rapid increase in power supplies that are straining utilities and grids in many states. Sign up here. The moves under consideration include making it easier for power-generating projects to connect to the grid, and providing federal land on which to build the data centers needed to expand AI technology, according to the sources. The administration will also release an AI action plan and schedule public events to draw public attention to the efforts, according to the sources, who requested anonymity to discuss internal deliberations. The White House did not respond to requests for comment. Training large-scale AI models requires a huge amount of electricity, and the industry's growth is driving the first big increase in U.S. power demand in decades. Between 2024 and 2029, U.S. electricity demand is projected to grow at five times the rate predicted in 2022, according to power-sector consultancy Grid Strategies. Meanwhile, power demand from AI data centers could grow more than thirtyfold by 2035, according to a new report by consultancy Deloitte. Building and connecting new power generation to the grid, however, has been a major hurdle because such projects require extensive impact studies that can take years to complete, and existing transmission infrastructure is overwhelmed. Among the ideas under consideration by the administration is to identify more fully developed power projects and move them higher on the waiting list for connection, two of the sources said. Siting data centers has also been challenging because larger facilities require a lot of space and resources, and can face zoning obstacles or public opposition. The executive orders could provide a solution to that by offering land managed by the Defense Department or Interior Department to project developers, the sources said. The administration is also considering streamlining permitting for data centers by creating a nationwide Clean Water Act permit, rather than requiring companies to seek permits on a state-by-state basis, according to one of the sources. In January, Trump hosted top tech CEOs at the White House to highlight the Stargate Project, a multi-billion effort led by ChatGPT's creator OpenAI, SoftBank (9434.T) , opens new tab and Oracle (ORCL.N) , opens new tab to build data centers and create more than 100,000 jobs in the U.S. Trump has prioritized winning the AI race against China and declared on his first day in office a national energy emergency aimed at removing all regulatory obstacles to oil and gas drilling, coal and critical mineral mining, and building new gas and nuclear power plants to bring more energy capacity online. He also ordered his administration in January to produce an AI Action Plan that would make "America the world capital in artificial intelligence" and reduce regulatory barriers to its rapid expansion. That report, which includes input from the National Security Council, is due by July 23. The White House is considering making July 23 "AI Action Day" to draw attention to the report and demonstrate its commitment to expanding the industry, two of the sources said. Trump is scheduled to speak at an AI and energy event in Pennsylvania on July 15 hosted by Senator Dave McCormick. Amazon (AMZN.O) , opens new tab earlier this month announced it would invest $20 billion in data centers in two Pennsylvania counties. https://www.reuters.com/legal/government/trump-plans-executive-orders-power-ai-growth-race-with-china-2025-06-27/

2025-06-27 11:24

Shein confidential filing marks rare departure from Hong Kong IPO norms Hong Kong IPO plan comes after setbacks of UK, US listing attempts Hong Kong IPO also subject to Chinese regulatory approval Confidential filing keeps details out of public view for longer June 27 (Reuters) - China-founded fast-fashion retailer Shein plans to file a draft prospectus confidentially for its Hong Kong listing, marking a rare departure from the usual practice of companies making public filings of IPO documents, three sources with knowledge of the matter said. Shein aims to submit the filing confidentially as soon as this week, one of the sources said. A second source said the filing was expected to be made by Monday. Sign up here. Shein's confidential filing, if approved, would represent a waiver of one of the main listing rules by the Hong Kong exchange for one of the world's most closely-watched IPO candidates, and possibly the largest in the city this year, two of the sources said. The filing will come as the company, which sells low-priced apparel such as $5 dresses and $10 jeans in around 150 countries, makes its third attempt to go public, more than 18 months after it first filed for a U.S. IPO in late 2023. Confidential filings enable companies to keep vital operational and financial information under wraps for longer and allow them to go through the regulatory review process without public disclosure. Hong Kong's listing rules permit confidential filings for secondary listings by companies already listed on recognised overseas exchanges, such as the New York Stock Exchange or Nasdaq. The exchange could also waive or modify the publication requirements in a spinoff from an overseas listed parent upon application by a new applicant, the listing rules show. While this practice is common for IPO applicants in the U.S., it remains relatively rare in Hong Kong, where high-profile IPOs have included Chinese tech giants Xiaomi (1810.HK) , opens new tab and Meituan (3690.HK) , opens new tab, which both filed publicly for their floats. The sources spoke to Reuters on the condition of anonymity as they were not authorised to speak to the media. Shein, founded by China-born entrepreneur Sky Xu, did not reply to a request for comment. The Hong Kong stock exchange declined to comment on individual companies. Documents, including financials, related to Shein's IPO will remain undisclosed until the company passes a hearing with the Hong Kong stock exchange, which is the final step in the city's regulatory approval process. Prior to that final step, Shein must secure an approval from the China Securities Regulatory Commission (CSRC) to go ahead with the Hong Kong IPO. It is not known if Shein has already secured a verbal nod from the Chinese securities regulator. The CSRC did not respond to Reuters request for comment. Reuters first reported last month, citing sources, that Shein was working towards a listing in Hong Kong after its proposed London IPO failed to secure the green light from Chinese regulators. The New York attempt also did not receive CSRC approval, Reuters previously reported. REGULATORY APPROVAL Shein's confidential submission of the prospectus enables Hong Kong and mainland Chinese regulators to assess the IPO application, raise their questions to Shein and prepare it for regulatory approval privately, the sources said. The regulators would be able to do that before public, including potential institutional investors', scrutiny of its application materials, including risk factors, they added. The filing would come against the backdrop of Shein grappling with the knock-on impacts of the Sino-U.S. trade war after U.S. President Donald Trump ended duty-free treatment of ecommerce parcels and hiked tariffs on Chinese goods, hurting its business in the U.S., its biggest market. Shein was valued at $66 billion during its pre-IPO fundraising round in 2023, down by a third from a funding round one year earlier. Its eventual IPO valuation will hinge on the impact of the tariff changes, sources have said. RISK DISCLOSURES A Shein listing would help Hong Kong, which saw $12.8 billion worth of IPOs and second listings in the first half, re-establish its credibility as a global fundraising centre at a time of major volatility stoked by U.S. trade policy changes. Shein, founded in mainland China in 2012, is hoping to succeed in Hong Kong after failed attempts to list in New York and then London, where Britain's financial regulator approved the listing. Shein will have to file with the CSRC within three working days after submitting its IPO application in Hong Kong, in line with Beijing's rules for Chinese firms seeking offshore listings. Shein shifted headquarters from China to Singapore in 2022 and does not own or operate any factories, but remains subject to Chinese IPO rules because its products are mostly made by a network of 7,000 third-party suppliers in China, sources have said. The CSRC applies the rules on a "substance over form" basis, granting it discretion on when and how to implement them. A draft prospectus would normally disclose key risks to a company including those linked to its supply chain. Shein has faced allegations from politicians and campaigners that its supply chain in China is linked to forced labour of Uyghur minorities in Xinjiang, a highly contentious issue for Beijing, which denies any abuses in the cotton-producing province. The U.S. has a ban in place on imports of products made using forced labour from Xinjiang, and Shein has said it does not allow its suppliers to use Chinese cotton in U.S.-bound products. Shein has said its supplier code of conduct prohibiting forced labour applies worldwide. https://www.reuters.com/business/retail-consumer/china-fashion-retailer-shein-file-confidentially-hong-kong-ipo-rare-move-sources-2025-06-27/

2025-06-27 11:10

TSX ends down 0.2% at 26,692.32 For the week, the index gains 0.7% Materials group falls 2.8% as gold drops Energy ends 0.5% lower June 27 (Reuters) - Canada's main stock index pulled back on Friday from a record high, weighed by declines for mining shares, as data showed the domestic economy contracting and after U.S. President Donald Trump shattered optimism that the United States would reach a tariff deal with Canada. The S&P/TSX composite index (.GSPTSE) , opens new tab ended down 59.63 points, or 0.2%, at 26,692.32, after posting a record closing high on Thursday. For the week, the index was up 0.7% as cooling Middle East tensions boosted investor sentiment. Sign up here. The market has benefited recently from some good news and the reduction of outsized risks, said Ben Jang, a portfolio manager at Nicola Wealth. "But that doesn't mean that economic scarring hasn't occurred," Jang said. Canada's economy contracted by 0.1% in April from March as U.S. tariff uncertainty weighed on the goods-producing sector. Preliminary data pointed to a further decline in activity for May. Trump abruptly cut off trade talks with Canada over its new tax targeting U.S. technology firms, calling it a "blatant attack" and saying that he would set a new tariff rate on Canadian goods within the next week. The materials group, which includes fertilizer companies and metal mining stocks, fell 2.8% as easing of U.S.-China trade tensions reduced the appeal of safe-haven gold. Energy also ended lower, falling 0.5%, as the price of oil posted a steep weekly decline. TC Energy Corp (TRP.TO) , opens new tab was a bright spot. Its shares rose 2.4% after the company started collecting tolls for the Southeast Gateway natural gas pipeline in Mexico. Seven of 10 major sectors ended higher, with real estate adding 0.7% as long-term borrowing costs fell. The Canadian 10-year eased 2.5 basis points to 3.315%, pulling back from an earlier one-week high. https://www.reuters.com/world/americas/tsx-futures-flat-gold-falls-investors-await-us-inflation-data-2025-06-27/