2025-06-05 12:11
LONDON, June 5 (Reuters) - Sterling ticked higher against the dollar on Thursday, one of the few major currencies to hold its own against the greenback which regained ground after weak U.S. data dragged it lower on Wednesday. The pound was up 0.14% at $1.3574, while against the euro it was up 0.1% at 84.16 pence. Sign up here. Sterling remains a touch away from a more than three-year high hit on May 26, underpinned by ongoing dollar weakness with the pound up over 8% this year. Also helping is the fact the UK is the only country to have struck a trade deal with the U.S and was spared from higher U.S. steel and aluminium tariffs, though analysts question how beneficial those factors are. "The trade deal does matter," said Chris Beauchamp, chief market analyst at IG Group. "You might argue it's not a proper trade deal and that it doesn't solve all the problems, but at least it's a sign that there's a more compelling reason to hold the pound rather than be worrying about the euro," Beauchamp added. The Bank of England (BoE) will meet on June 19 to deliver its next policy decision with market bets firmly on the monetary policy committee (MPC) keeping rates steady . There had been expectations of a further 25 bps cut from the BoE at its June meeting but bets were slashed following weak economic data and a hotter-than-expected inflation read last month. On Tuesday, Bank of England Governor Andrew Bailey said he was sticking with a "gradual and careful" approach to cutting interest rates as global trade policy turmoil increasingly clouds the outlook. Reassurance came on Wednesday with a survey showing Britain's services sector returned to tepid growth last month. https://www.reuters.com/world/uk/sterling-holds-its-own-against-stronger-dollar-trade-optimism-lends-supports-2025-06-05/
2025-06-05 12:10
June 5 (Reuters) - A 2,000-gallon diesel spill that originated at a hospital facility in Baltimore, Maryland, on Wednesday tainted a waterfront in a popular tourist spot in the city, but there was no impact on drinking water in the area, officials said on Thursday. The spill originated from a Johns Hopkins Hospital facility near the marina and was initially estimated at only 100 gallons, the office of Maryland Governor Wes Moore said in a statement. Sign up here. The spill has been contained in the marina in Harbor East, an area roughly 100 by 250 yards, the statement added. Moore's office said that the water in the area had turned red due to dye in the diesel fuel, and that the U.S. Coast Guard was working with a contractor on cleanup efforts. "My team and I are currently onsite at Fells Point, where there’s been an oil spill of unknown origins," Moore said in a post on X earlier on Wednesday, before the origin of the spill was identified. Fells Point is a historic, waterfront neighborhood in the city. Johns Hopkins Hospital was engaged in response, according to the governor's statement. The hospital did not immediately respond to a request for comment outside regular business hours. https://www.reuters.com/sustainability/land-use-biodiversity/about-2000-gallons-diesel-spills-baltimore-waterfront-us-officials-say-2025-06-05/
2025-06-05 11:59
LITTLETON, Colorado, June 5 (Reuters) - Europe's power generation mix looks set to get dirtier over the coming summer after an enduring dry spell depleted reservoirs and crimped hydro-electricity output. Hydro dams are Europe's third-largest electricity source after natural gas and nuclear plants, and historically reach their annual production peak just before summer as snow melt and spring rains recharge dams and river systems. Sign up here. That network of reservoirs and run-of-river hydro plants is then typically used as a key source of so-called dispatchable power, which can be discharged on command by grid operators to balance system power needs. This year, however, a lingering drought has hit hydro generation and cut hydro-powered electricity supplies by 13% over the first five months of 2025 from the year before, to the lowest level for the month of May since 2017, data from Ember shows. That shortfall of hydro output has in turn forced utilities to rely on other dispatchable power sources - including natural gas and coal plants - which may need to be deployed at even higher levels this summer if hydro output stays stunted. HIGH & DRY Below-normal snow cover across Europe's Alps has been a key source of the hydro headache this year. From January through the end of May, a model of snow-fed hydro generation potential by LSEG estimates that output from across the Alps region is roughly a third below the long-term average so far this year. Stunted spring rains have also hurt, with output generation potential across the Danube catchment area - one of Europe's main river-fed hydro networks - over 60% below normal, LSEG data shows. HYDRO HIT The combination of below-average snow cover and precipitation has led to a roughly 13% drop in cumulative hydro-powered electricity production over the January-to-May period from the same months in 2024, according to Ember. During May, the 71 terawatt hours (TWh) of electricity generated from Europe's hydro plants was the lowest for the month of May since 2017, and was 11 TWh short of the output total during the same month a year ago. This year's January-to-May hydro-fed electricity output was 48.5 TWh less than the same period in 2024, which reduced hydro power's share of Europe's electricity generation mix to 16.7% so far this year from over 19% during the same months in 2024. FOSSIL FIX To offset the drop in hydro generation, as well as a 36 TWh drop in cumulative output from Europe's wind farms so far this year, European power firms have had to boost fossil fuel power generation. Output from gas-fired power plants was 31 TWh, or 7%, above the January to May 2024 total, while output from coal-fired plants was 12.5 TWh, or 5%, higher, Ember data shows. Going forward, European utilities may need to crank coal and gas plant output higher still if hydro production remains constrained while power demand remains at average levels. Output from Europe's fleet of nuclear reactors can also be potentially increased to offset the decline in hydro plants. However, regional nuclear power output could also be constrained if the region's river temperatures rise during any potential heatwaves and reduce their ability to act as a source of cooling water in reactors. That means that Europe's network of gas and coal-fired power plants will likely remain the primary source of dispatchable generation through the coming summer, especially if the dry conditions that have prevailed so far this year drag on. The opinions expressed here are those of the author, a columnist for Reuters. https://www.reuters.com/business/energy/europes-dispatchable-power-woes-worsen-fresh-hydro-hit-maguire-2025-06-05/
2025-06-05 11:42
TSX ends up 0.1% at 26,342.29 Trade deficit hits an all-time high in April Energy rises 0.5% as oil settles 0.8% higher Descartes Systems Group tumbles 12.1% June 5 (Reuters) - Canada's main stock index edged higher on Thursday as higher oil prices boosted energy shares and investors assessed prospects of Canada reaching a trade deal with the United States. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) , opens new tab ended up 13.29 points, or 0.1%, at 26,342.29, staying within reach of the record closing high it posted on Tuesday. Sign up here. Canadian Prime Minister Mark Carney and U.S. President Donald Trump are in direct communication as part of Ottawa's bid to persuade Washington to lift tariffs, Industry Minister Melanie Joly said. "We're still cautiously optimistic that the TSX finishes at 27,000 for the year," said Jay Bala, co-founder and senior portfolio manager at AIP Asset Management. "I do think that Mark Carney is going to have a better relationship with the Donald Trumps of the world and I think he'll get a (trade) deal done ... it makes sense for both countries to get a deal done." Canada is a major destination for U.S. goods, while it sends 75% of its exports south of the border. U.S. tariffs hurt demand for Canadian goods in April, which contributed to the Canadian trade deficit widening to an all-time high of C$7.1 billion ($5.2 billion). The energy sector rose 0.5% as the price of oil settled 0.8% higher at $63.37 a barrel on optimism about U.S.-China trade talks. The materials group, which includes metal mining shares, was up 0.4% as copper prices climbed. Technology was a drag, falling 1.1%, with shares of Descartes Systems Group Inc (DSG.TO) , opens new tab down 12.1% after the application software company's first-quarter results missed estimates. https://www.reuters.com/markets/europe/tsx-futures-inch-up-ahead-key-economic-data-2025-06-05/
2025-06-05 11:28
US trade delegation in New Delhi for two-day talks Negotiators likely to finalise tariff cuts, market access issues part of interim deal, sources say Interim deal likely to be announced by month end NEW DELHI, June 5 (Reuters) - Indian and U.S. are holding high-level talks this week, aiming to finalise tariff cuts in sectors such as farm and automobiles as part of an interim deal, two government sources said, with an announcement likely later this month. A U.S. delegation led by senior officials from the Office of the United States Trade Representative (USTR) began closed-door, two-day discussions in New Delhi on Thursday with Indian trade officials headed by chief negotiator Rajesh Agrawal, the sources said. Sign up here. "During the current round of talks, negotiators are discussing tariff cuts on specific sectors including agriculture and autos, and proposed benefits for Indian companies," one Indian government source, said. The deal may be formally announced by month end, before the self-imposed deadline of July 9 by President Trump, but a statement is expected once meetings wrap up, possibly by Sunday, a second official said. Trade Minister Piyush Goyal, currently in Italy, may return to meet the delegation, the official added. The officials said spoke on the condition of anonymity due to the sensitivity of the discussions. Indian trade ministry didn't immediately respond to requests for comments. U.S. Commerce Secretary Howard Lutnick said in Washington on Monday that trade negotiations were progressing and a deal could be finalised soon. India and the U.S. agreed in February to work on a phased deal, aiming to lift bilateral trade to $500 billion by 2030. Officials said, India, buoyed by recent trade pact with the UK, and EU talks, is resisting U.S. demands to open its farm and dairy markets, citing potential rural backlash. "We are ready to offer a better deal than the UK pact, with average tariffs down to 10%, matching the U.S. base rate, and near-zero duties with quotas in exchange for market access and supply chain linkages," a third official said. Washington has flagged India's average farm tariff of 39%, with some duties reaching 45-50%. It is also pushing India to allow corn imports for ethanol production. Bilateral trade with the U.S., India's largest trading partner, rose to $129 billion in 2024, with India posting a $45.7 billion surplus. https://www.reuters.com/world/india/india-us-push-finalise-interim-tariff-deal-trumps-deadline-nears-2025-06-05/
2025-06-05 11:16
BRUSSELS, June 5 (Reuters) - Europe already has tools to reduce the impact of Trump tariffs and Chinese over-capacity on the EU steel industry, such as stopping Russian imports of the metal, a Thyssenkrupp executive board member said on Thursday. The European Union banned steel imports from Russia after its invasion of Ukraine, with its shipments to be phased out incrementally. Sign up here. Stopping those completely is among the tools the bloc can use to help its steel industry weather Trump tariffs and a Chinese supply glut, Thyssenkrupp board member Ilse Henne said during a conference with EU trade chief Maros Sefcovic. "There is still Russian steel coming into Europe. How much? Three to 4 million (tons a year)," Henne said. "And it's very easy to stop that." "Security starts in making sure that industries survive today. And for the steel industry, that means simply applying a number of defense instruments that we already have." The EU is also currently negotiating a trade agreement with India, with talks due to conclude by the end of this year. India's federal trade minister Piyush Goyal said in April India was trying to secure greater access for its steel exports to various markets, including the EU. Henne said Europe was "at the edge" in its negotiations with India. "There is a solution, or a high risk that Indians dump following the Chinese deals on the market," she said. The EU already fears much of China's steel and aluminium production will be rerouted from the U.S. to flood Europe, as Chinese state aid has created a supply glut. The Commission already tightened existing steel import quotas by 15% in April and is working on replacing those safeguards with a tighter system ahead of their expiry next year. It is also examining how to set aluminium safeguards, as well as possible export duties on metal scrap. https://www.reuters.com/markets/commodities/eu-has-existing-tools-reduce-pain-steel-tariffs-thyssenkrupp-executive-says-2025-06-05/
