2025-10-06 21:13
WASHINGTON, Oct 6 (Reuters) - U.S. President Donald Trump on Monday said he had signed an executive order directing his administration to permit an access road to the Ambler mining district in Alaska to unlock domestic supplies of copper and other minerals. The White House also announced a $35.6 million investment in Canada's Trilogy Metals (TMQ.TO) , opens new tab, one of the region's possible developers. The investment makes the U.S. government a 10% shareholder in the company and includes warrants to purchase an additional 7.5% stake. Sign up here. U.S.-listed shares of Trilogy more than doubled in after-hours trade to $4.72. “This partnership represents a strong vote of confidence in the Ambler Mining District and is a major step forward for domestic mineral development that’s fundamental to America’s security and economy,” said Kaleb Froehlich, managing director of Ambler Metals, a joint venture between Trilogy and Australia's South32 Limited. Trump's order reverses the Biden administration's rejection of a 211-mile (340-km) road intended to enable mine development in the north central Alaskan region. Biden's Interior Department in 2024 had cited risks to caribou and fish populations that dozens of native communities rely on for subsistence. "This is something that should have been long operating and making billions of dollars for our country and supplying a lot of energy and minerals and everything else that we are talking about," Trump said at a signing event in the Oval Office. The Alaska state agency that proposed the project appealed the Biden administration decision. Environmental group Sierra Club said development in the region would harm pristine landscapes that support tribes and wildlife. "Communities along the proposed route of the road have consistently made their voices clear in opposing this damaging project," Athan Manuel, director of Sierra Club's lands protection program, said in a statement. "This order ignores those voices in favor of corporate polluters." https://www.reuters.com/world/us/trump-signs-order-build-access-road-alaskas-ambler-mining-district-2025-10-06/
2025-10-06 21:02
ORLANDO, Florida, Oct 6 (Reuters) - Politics and AI powered huge moves across world markets on Monday, namely the collapse of the French government and surprise emergence of a likely new leader in Japan, and a multi-billion dollar chip-supply deal between AMD and OpenAI. More on that below. In my column today, I ask the question: who needs U.S. economic data when you have the stock market? It may sound flippant, but the ties between Wall Street, household wealth and consumption have rarely been stronger. Sign up here. If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today. Today's Key Market Moves Today's Talking Points: * Is France really 'uninvestable'? France's government collapsed on Monday within hours of being appointed after Prime Minister Sebastien Lecornu unexpectedly handed in his resignation to President Emmanuel Macron, making it the shortest-lived government in modern French history. The French market reaction was predictable enough - stocks and bonds fell - but the big picture for the euro zone's second largest economy is more of a worry. French bonds are now increasingly seen as riskier than Italy's, and BCA Research has gone as far as to say French bonds are "uninvestable". * Japan jolts global markets Japan's ruling Liberal Democratic Party, which has governed Japan for almost all of the postwar era, has picked hardline conservative Sanae Takaichi as its leader, putting her on course to become the country's first female prime minister. The most relevant aspect for markets is the likely effect of Takaichi's policy stance on government spending and the Bank of Japan - she is seen as a fiscal dove and has previously criticized the BOJ's rate hikes. The impact of Japanese policy and asset prices on global markets is always fascinating. Even more so now. * AI's increasingly entangled web Another day, another mega deal in the rarified air of Big Tech's artificial intelligence, and as night follows day, new record highs for the U.S. tech sector, semiconductor index and wider Nasdaq. It's getting hard to keep up. As AJ Bell's Danni Hewson notes - Nvidia and Microsoft have stakes in OpenAI; OpenAI has a deal that could see it take a stake in AMD; Nvidia is taking a stake in Intel, which could become a manufacturing partner for AMD. "It all looks a bit odd, and it would be fascinating to hear what antitrust regulators have to say," Hewson writes. Who needs US economic data when you have Wall Street? The U.S. government shutdown is delaying key economic data releases, thickening the fog of uncertainty for policymakers and businesses, but they needn't worry. They still have access to one of the best economic indicators: the stock market. That may sound flippant, but the connection between U.S. equity prices, consumer spending and economic growth is strengthening. By some measures, it has never been stronger. This helps explain one of economists' big 'misses' this year: stubbornly resilient U.S. consumption. They seem to have underestimated the powerful, positive feedback loop of gravity-defying strength on Wall Street and consumer spending, the so-called wealth effect. U.S. households have rarely been richer and have never had so much of their wealth in the stock market. The epic rally in equities is therefore making a lot of Americans feel a lot richer, increasing their propensity to spend. This is particularly true of the wealthiest households, who account for an outsized share of consumer spending. The Federal Reserve's national financial account figures for the second quarter, the latest available, are revealing on this measure. Total household net wealth rose by $7.09 trillion, the third-largest increase on record, with rising equity prices contributing an eye-popping $5.51 trillion to gains in household wealth during the period. This reflects the fact that equities' share of total household assets has risen to a record 31%, or more than 45% of households' financial assets, another record. Considering the sheer size of these figures, it's reasonable to assume that the 'wealth effect' is one major reason why Americans are continuing to spend. BIG SPENDERS Economists are questioning the resilience of this consumption, however, as the U.S. labor market is showing signs of creaking, if not buckling. Job growth has essentially ground to a halt, and while this may partly be a consequence of reduced immigration, it still isn't something typically associated with robust household consumption. Yet economists at TD Securities – who share concerns about the weakening U.S. job market – still expect consumer spending to accelerate in the third quarter to a 3.2% annualized rate, from 2.5% in the second, raising their GDP growth forecast to 2.8% from 2.2%. What explains this seeming incongruity? Namely, the rich, who largely thanks to roaring equity markets, keep getting richer. Consumption may always be driven by the wealthy, but that's especially true today. The richest 10% of Americans account for around half of all consumer spending, which itself represents around 70% of all U.S. economic activity. And the richest of all – the top 0.1% of households – saw their share of total household wealth rise to a record 13.9% in the second quarter, a period in which the S&P 500 rose 10.5% and the tech-dominated Nasdaq rose 17.5%. These indices rose another 8% and 11%, respectively, in the third quarter, indicating that households felt even richer than they did in the second. Rich enough to keep on spending liberally? The answer is likely "yes." Economists at Goldman Sachs reckon that positive wealth effects may be strong enough to support consumer spending growth over the next year, especially after it gets a boost from the Trump administration's tax cuts. Goldman estimates quarterly annualized consumption growth was around 0.3 percentage points in the July-September period and will be around 0.2 percentage points over the next year. That's assuming equity prices rise in line with nominal GDP growth. If equity markets keep booming, consumption could eclipse economists' expectations yet again. REASONS TO BE CAUTIOUS Of course, the 'wealth effect' is no guarantee of an uninterrupted consumption boom. While actual spending remains fairly healthy, consumer confidence is low, near the lowest on record, in fact, according to the University of Michigan's sentiment index. But that's the confidence of the average consumer, not that of the richest who keep seeing their stock portfolios appreciate. And as TS Lombard's Dario Perkins points out, the savings rate should fall when net worth rises, as consumers take out cash and spend. That's not happening now - the savings rate is low at around 5%, but it has barely moved for the last few years. Finally, stocks could stop defying gravity. Claims that we're reaching a market top have been growing lately. But as long as optimism about artificial intelligence remains elevated and U.S. tech companies continue recording strong earnings, that long-awaited correction will stay just out of reach. That's good news for U.S. equity holders, and, on balance, the economy as a whole. What could move markets tomorrow? Want to receive Trading Day in your inbox every weekday morning? Sign up for my newsletter here. 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. https://www.reuters.com/world/asia-pacific/global-markets-trading-day-graphic-2025-10-06/
2025-10-06 20:19
Oct 6 (Reuters) - Exxon Mobil (XOM.N) , opens new tab said on Monday changes in crude oil prices over the third quarter could impact the company's upstream earnings from negative $100 million to as much as a positive $300 million. The company also signaled in a regulatory filing that stronger margins in the refining business could boost earnings by $300 million to $700 million, compared with the second quarter. Sign up here. Benchmark Brent crude prices averaged $68.17 per barrel from July through September, up 2% from the previous quarter. U.S. natural gas prices declined 12.5% from the previous quarter and averaged $3.07 per million British thermal units. Exxon said changes in gas prices could affect its quarterly upstream earnings from a negative $200 million to as much as a positive $200 million. The company also said restructuring costs could negatively impact overall earnings by $400 million to $600 million. Last week, the company said it will lay off 2,000 workers globally, particularly in Canada and across the European Union, as part of a long-term restructuring plan. BMO Capital Markets analyst Phillip Jungwirth expects the structural cost saving to be a tailwind, but could be offset by higher expenses. Exxon's regulatory filing provides a snapshot of market factors that affected the top U.S. oil firm's business and is watched by investors for signals about the performance of the broader industry and other producers. The company will release its final quarterly results on October 31. Analysts expect Exxon to report adjusted earnings of $1.79 per share for the third quarter, according to consensus estimates compiled by LSEG. French oil major TotalEnergies (TTEF.PA) , opens new tab and UK-based BP (BP.L) , opens new tab will report third-quarter results on October 30 and November 4. The industry bellwether had posted $5.4 billion in upstream earnings for the second quarter. https://www.reuters.com/business/energy/exxon-mobil-forecasts-rise-third-quarter-upstream-profit-2025-10-06/
2025-10-06 20:09
MEXICO CITY, Oct 6 (Reuters) - Mexico's agriculture ministry said on Monday another case of the flesh-eating screwworm parasite was detected in Nuevo Leon, which borders the United States, marking the state's second confirmed case in about two weeks. The infested calf had originated from the south of Mexico and was intercepted in the town of Montemorelos, south of Monterrey. None of the other 84 animals in the same shipment were found to be infested, the ministry said in a statement. Sign up here. The New World screwworm larvae, which infest and can kill livestock if untreated, in the detected case were all found dead or dying as a result of mandatory treatments, including the antiparasitic ivermectin, the statement added. Mexico's agriculture ministry and sanitation agency Senasica recently told sector groups that ivermectin must be given 72 hours in advance of the movement of cattle under the supervision of staff from the International Regional Organization for Animal and Plant Health. The screwworm outbreak has rattled the livestock sector and prompted the U.S. government to keep its border mostly closed to Mexican cattle imports since May. "The condition in which the larvae arrived makes them unviable for reproduction, demonstrating the effectiveness of the inspection protocols at origin and destination applied to mitigate the risk of screwworm spreading," the ministry said about the Montemorelos case. The newly detected case was not related to a case of screwworm confirmed in Nuevo Leon state in September , opens new tab, the government said. U.S. Agriculture Secretary Brooke Rollins said on X the case was believed to be an isolated incident, about 100 miles (160 km) further south than the previous case in Nuevo Leon. "We will have boots on the ground within hours to independently verify the situation," her post said. Rollins has been critical of the Mexican government's response to the outbreak, saying it had failed to curb cattle movements and tend to fly traps that monitor the wild population. Mexico recorded 6,703 cases of animals infested with screwworm as of September 13 since the start of the outbreak in November of last year. That was compared to 5,086 confirmed cases during the previous period, which ended August 17. https://www.reuters.com/business/healthcare-pharmaceuticals/mexico-intercepts-new-screwworm-case-northern-border-state-2025-10-06/
2025-10-06 19:47
SAO PAULO, Oct 6 (Reuters) - Brazilian state-run oil firm Petrobras said on Monday it has contracted building services for its Boaventura refining project in contracts totaling 9.6 billion reais ($1.81 billion). In a statement, Petrobras said it signed five contracts, including for the building of two units that will produce lubricants, diesel S-10 and jet fuel. Sign up here. The firm added it has also signed contracts worth another 10.2 billion reais for the charter of four ROV Support Vessels, which will support the firm's submarine operations. ($1 = 5.3097 reais) https://www.reuters.com/business/energy/brazils-petrobras-signs-18-billion-contracts-boaventura-refining-project-2025-10-06/
2025-10-06 19:13
SAO PAULO, Oct 6 (Reuters) - Brazil may not be able to raise the mandatory biodiesel mix in diesel to 16% from 15% within a government-set deadline of March 2026, an official from the Brazilian Ministry of Mines and Energy said on Monday. Marlon Arraes, director of biofuels at the ministry, said during an industry event in Sao Paulo that there may not be enough time for the government to finalize the needed studies to implement the measure. Sign up here. "It’s possible that we won't be able to meet the March deadline. It’s highly challenging," Arraes said, adding the government has yet to finalize a report to be able to implement the new phase of the policy. Brazilian law mandates a gradual increase in the biodiesel mix of one percentage point per year, potentially reaching 20% by 2030. The official declined to give a timeline for introduction of the 16% mandatory mix. The potential postponement of the deadline would mainly impact the soybean oil industry, as the oilseed is used to produce more than 75% of Brazil's biodiesel. The 15% mix, which was supposed to become mandatory in March this year, was only implemented in August, with the country's government citing inflation concerns. According to the official, the legislation requires that any increase in the blend be conditioned on technical feasibility studies, which are ongoing. https://www.reuters.com/business/energy/brazil-may-not-introduce-16-biodiesel-mix-into-diesel-deadline-official-says-2025-10-06/
