2025-09-17 06:50
GDANSK, Sept 17 (Reuters) - Polish power utility Tauron (TPE.WA) , opens new tab said on Wednesday it swung to a net profit in the second quarter, after posting a loss in the same period last year due to impairments on its generation and heat assets. The result was in line with the company's preliminary figures published on August 27. Sign up here. WHY IT'S IMPORTANT Tauron, as Poland's second-largest and state-controlled utility, plays a pivotal role in the country's planned transition to renewable energy sources. The company faces mounting pressure after the government directed it to prioritise affordable power over profits, compounding the financial challenges from its declining coal business. BY THE NUMBERS Tauron reported quarterly net profit of 923 million zlotys ($257.4 million), while revenue came at 7.35 billion zlotys. Its earnings before interest, taxes, depreciation and amortisation (EBITDA) were in line with estimates at 1.89 billion zlotys. Last year, the company reported a net loss of 1.33 billion zlotys. CONTEXT Under its current strategy, Tauron plans to decommission all its coal-fired units by 2030 as it shifts towards greener energy sources. The company will invest 100 billion zlotys by 2035 to fund this transition and aims to restart dividend payments from 2029. ($1 = 3.7378 zlotys) https://www.reuters.com/business/energy/polish-utility-tauron-swings-net-profit-second-quarter-2025-09-17/
2025-09-17 06:48
CPI holds at +3.8%, in line with Reuters poll Underlying measures of inflation slow in August Bank of England seen holding rates on Thursday Food prices - felt by consumers - rise more quickly LONDON, Sept 17 (Reuters) - British inflation held at 3.8% in August, the highest of any major advanced economy, according to official figures that underscore why investors believe the Bank of England is unlikely to cut interest rates again this year. High inflation is a problem for Britain's government as well as the BoE. Finance minister Rachel Reeves said last week that fellow ministers should focus on helping the central bank to slow price growth as well as boosting economic growth. Sign up here. Inflation for consumer services - closely watched by the BoE as a gauge of domestic price pressures - slowed to 4.7% from 5.0% in July, the Office for National Statistics said on Wednesday. Core inflation, which excludes energy, food and tobacco prices, fell to 3.6% from 3.8%. Most economists polled by Reuters and the BoE had forecast that the headline measure of inflation would hold at 3.8%. Sterling and British interest rate futures were little changed by the ONS data. BANK OF ENGLAND CONSTRAINED ON RATE CUTS The BoE is expected to hold its benchmark interest rate steady at 4% on Thursday after lowering it by 25 basis points in August. The Monetary Policy Committee's 5-4 split vote last month suggested the central bank might slow its already gradual pace of rate cuts due to persistently above-target inflation. Wednesday's figures showed petrol prices and the cost of hotels and restaurants were the biggest contributors to August inflation. That was offset by a slower rise in transport costs, particularly airfares which have been volatile in recent months. Prices for food - which the BoE sees as key for the public's inflation expectations - and non-alcoholic drinks were 5.1% higher in August compared to a year ago, after a 4.9% rise in July. Last month, longer-term inflation expectations among the public rose to the highest since 2019. British inflation is higher than in the United States where it increased to 2.9% in August and in the euro zone where it rose to 2.1%, just above the European Central Bank's 2% target. The BoE has forecast that British inflation will reach 4% in September and stay above its 2% target until the spring of 2027. While Britain's labour market has loosened, it continues to put upward pressure on prices. British wage growth slowed in the latest data, but at 4.8% for basic pay it remains too high for the BoE to take much comfort from the inflation outlook. However, official data last week painted a downbeat picture of Britain's economy, recording just 0.2% growth in the three months to July. "We still expect the looser labour market to weaken wage growth and eventually bring down UK inflation to similar rates as in the U.S. and the euro zone," Paul Dales, chief UK economist at Capital Economics, said. That would allow the BoE to cut rates from 4.0% now to 3.0% by the end of next year, Dales said. "But we think the upside inflation risks are just too high for the Bank of England to cut interest rates tomorrow or, more significantly, at the following meeting in November," he added. https://www.reuters.com/sustainability/sustainable-finance-reporting/uk-inflation-holds-38-highest-among-big-rich-economies-2025-09-17/
2025-09-17 06:43
Lee pledges to speed development of district next to Shenzhen Says improving people's livelihoods a top priority Eager to provide better housing for residents HONG KONG, Sept 17 (Reuters) - Hong Kong leader John Lee pledged on Wednesday to boost the city's economy, improve livelihoods and cement its role as an international centre, unveiling measures including developing a gold trading market. A former deputy head of police, Lee reaffirmed the city's economic growth forecast of 2% to 3% for 2025 and highlighted Hong Kong's role as a springboard for mainland China enterprises looking to expand abroad. It was the fourth policy address of his term. Sign up here. Lee said his "ultimate objective" was to improve livelihoods, "with better housing for members of the public, higher income for workers, enhanced care for the elderly, and greater prospects for young people." Hong Kong's small and open economy has felt the ripple effects of an economic slowdown in China and trade tensions between Beijing and Washington. The policy address comes amid Beijing's push to bolster flagging economic growth amid sluggish consumer demand and a years-long property crisis. His presentation, which lasted nearly three hours, was thin on new major initiatives including housing but went into detail on government accountability and national security. Lee said the government was "expediting the development of new growth areas" by building an international gold trading market, developing fintech and green and sustainable finance. The city's monetary authority, the HKMA, will encourage the banking sector, especially in mainland China, to establish regional headquarters in Hong Kong and expand into Southeast Asia and the Middle East, Lee said. The government will also expand its aviation industry by providing recycling and trading services of high-value parts, as well as developing a sustainable aviation fuel industry chain. The city will also attract more pharmaceutical companies to set up and conduct clinical trials and medical treatments for rare disease drugs, high-end cancer drugs and advanced therapy products. GREATER INTEGRATION Lee said the government would accelerate the development of the Northern Metropolis project, which aims to provide homes for around 2.5 million people and create a new business district near the border with the mainland. Sandwiched between Shenzhen and Hong Kong, the Northern Metropolis was a focus of former leader Carrie Lam in 2021 when she announced plans to develop the area into an innovation and technology hub. The development will be a stone's throw from the Greater Bay Area, a Chinese government scheme to link Hong Kong, Macau and nine cities in the southern province of Guangdong. Lee also said that as part of measures to build Hong Kong into a global education hub, the number of non-funded places for non-local students would be increased to 50% from 40% of local student places. The government will also introduce licensing for eateries to permit customers to bring their dogs, with more than 240,000 households keeping 400,000 cats and dogs as pets, he said. This presents "an enormous consumption market", he said, adding that pet-friendly restaurants will create new business opportunities. To boost births, Lee said taxpayers can claim a total of HK$260,000 in allowance for each child in the first two years following childbirth. https://www.reuters.com/world/hong-kong-leader-pledges-boost-economy-livelihoods-2025-09-17/
2025-09-17 06:38
Concerns over potential Russian supply disruption support prices Markets eye Fed meeting for clues on economy US crude stockpiles fell last week, industry data shows SINGAPORE, Sept 17 (Reuters) - Oil prices eased slightly on Wednesday, after rising more than 1% in the previous session, though ongoing geopolitical jitters provided a floor for the market while traders also awaited an expected interest rate cut from the U.S. Federal Reserve. Brent crude futures dipped 8 cents, or 0.1%, to $68.39 a barrel by 0630 GMT, while U.S. West Texas Intermediate crude futures fell 6 cents, or 0.1%, to $64.46 a barrel. Sign up here. The benchmarks settled more than 1% higher in the last trading session due to concerns that Russian supplies may be disrupted. Reuters reported on Tuesday that three industry sources said Russia's oil pipeline monopoly Transneft (TRNF_p.MM) , opens new tab has warned producers they may have to cut output following Ukraine's drone attacks on critical export ports and refineries. "The market has a laser focus on the geopolitical volatility and potential Russian supply disruptions. Market jitters are still keeping prices elevated," said Emril Jamil, a senior oil analyst at the London Stock Exchange Group. Investors are also awaiting the outcome of the Federal Reserve's September 16–17 meeting, with a new governor, Stephen Miran, on leave from the Trump administration, joining the deliberations, and a second policymaker, Lisa Cook, still facing efforts by President Donald Trump to oust her. The central bank is widely expected to cut interest rates by 25 basis points on Wednesday, which should stimulate the economy and boost fuel demand. "Markets are betting on a 25-basis-point Fed rate cut tonight, which traders believe could ease borrowing costs and boost fuel demand," said Priyanka Sachdeva, a senior market analyst at Phillip Nova. She added that the rally has also been buoyed by geopolitical jitters and supply risks from conflicts. "That said, I remain cautious. The global supply overhang for the rest of 2025 looks almost certain as OPEC+ is raising output," Sachdeva added. IG market analyst Tony Sycamore said the market's focus will be on "how many members join Stephen Miran in dissenting in favour of a 50-basis point rate cut", whether its outlook indicates two or three 25-basis point cuts and "the tone of Fed Chair Powell during the press conference". Any "buy-the-rumour, sell-the-fact" reaction in risk assets, including crude oil, will be short-lived, given the possibility of follow-up 25-basis point rate cuts in October and December, Sycamore said. In a potentially bullish sign, data on Tuesday showed U.S. crude and gasoline stocks fell last week, while distillate stocks rose, market sources said, citing American Petroleum Institute figures. Crude stocks fell by 3.42 million barrels, and gasoline inventories fell by 691,000 barrels in the week ending September 12, while distillate inventories rose by 1.91 million barrels from the prior week, the sources said. The market will be watching to see whether data from the U.S. Energy Information Administration on Wednesday matches that. A Reuters poll showed analysts estimated crude inventories fell by about 900,000 barrels last week, distillate stockpiles rose by about 1 million barrels and gasoline stockpiles rose by about 100,000 barrels. https://www.reuters.com/business/energy/oil-retreats-geopolitical-jitters-cap-declines-2025-09-17/
2025-09-17 06:17
Sept 17 (Reuters) - India's steel industry will not see much direct impact from U.S. tariffs, but the European Union's carbon tax will affect steel exports, the country's steel secretary Sandeep Poundrik said at the FT Live Energy Transition Summit India on Wednesday. Roughly two-thirds of India's steel exports go to Europe, while exports to the U.S. are negligible. Sign up here. India has sought an exemption from the carbon border adjustment mechanism (CBAM), which could impose a higher tax on imports of high-carbon goods, including steel, aluminium and cement. "The limits of carbon emission, which are proposed in CBAM, will definitely impact the exports," Poundrik said. Indian steel is predominantly produced using blast furnaces, where emissions are high, Poundrik said, adding that further addition of blast furnace capacity is an area of concern. Poundrik also said that India remains concerned about cheap imports and he expects the government to take a decision on the import tariffs, locally known as safeguard duty, in line with the proposed duty rate. Last month, the country proposed a three-year import tariff of 11%-12% on some steel products to curb shipments from top producer China. https://www.reuters.com/world/india/india-steel-exports-face-eu-carbon-tax-hit-us-tariffs-impact-minimal-official-2025-09-17/
2025-09-17 06:13
HONG KONG, Sept 17 (Reuters) - Hong Kong leader John Lee delivered his fourth annual policy address on Wednesday pledging to boost the financial hub's economy and enhance people's livelihoods. Some of the highlights include: Sign up here. ECONOMY - This year's economic growth is projected at 2% – 3%, compared with 2.5% in 2024. - To accelerate development of Northern Metropolis Area close to mainland China borders. - "We will also introduce dedicated legislation to accelerate the development of the Northern Metropolis." - To promote the development of AI+ with strong emphasis on safety risk prevention. - To formulate preferential policy packages to attract more enterprises. - The government will explore the establishment of a more flexible mechanism to introduce tax incentives that comply with international standards. - To attract more top-notch international and mainland pharmaceutical companies to set up operations in Hong Kong. - To promote the development of the new energy industry, and Hong Kong is working to achieve carbon neutrality before 2050. - To construct Hong Kong's first large-scale electric vehicle (EV) battery recycling facility, which is expected to commence operation in the first half of 2026. - To set up task force on supporting mainland China enterprises in going global and to encourage mainland enterprises to use Hong Kong in expanding their businesses overseas. - To optimise the regimes for listing on the Main Board and issuing structured products, consider enhancements to the listing requirements for companies with weighted voting right structures. - To press ahead with the inclusion of an yuan trading counter under Stock Connect's Southbound trading for Hong Kong stocks. - To promote Hong Kong as international gold trading market. - To support the Airport Authority Hong Kong and financial institutions to establish Hong Kong's gold storage facilities, with a target gold storing capacity of over 2,000 tonnes in three years, propelling Hong Kong into a regional gold reserve hub. - To explore signing of new investment agreements with Saudi Arabia, Bangladesh, Egypt and Peru. - To invite expressions of interest in development of a yacht bay and its ancillary facilities early next year. The facilities will be completed in phases, starting in 2028. - "Hong Kong is well-positioned to become a yacht hub in Asia. We will enhance amenities for the yacht industry and promote prime yacht tourism." - To promote development of insurance products. - To build Hong Kong into a global premium arts trading hub, attracting more international auction houses, galleries to establish presence in the city. - To develop "mega events + tourism" to attract visitors and to offer tailor-made luxury tours for high-spending visitors. - Three areas will be approved this year for autonomous vehicles trials to accelerate development of driverless autonomous driving in Hong Kong, facilitating industry's expansion to right-hand-drive markets overseas. - To launch licence for pet-friendly restaurants POLITICS/NATIONAL SECURITY - The government will continue to steadfastly safeguard national sovereignty, security and development interests - "We will continue to enhance the legal system and enforcement mechanism for safeguarding national security ... so as to prevent, suppress and impose punishment for acts and activities endangering national security." TALENT - To build an international education hub, accelerating construction of the Northern Metropolis University Town. - To increase quota of non-local students attending universities from 40% to 50% LIVELIHOOD - Safeguarding the basic housing needs of people of Hong Kong is the top priority. - "We will increase the supply of flats under the Home Ownership Scheme and the Green Form Subsidised Home Ownership Scheme, optimise the sale and alienation restriction arrangements..." - To facilitate Hong Kong elderly recipients retiring in Guangdong and Fujian Provinces. - To implement further measures to promote fertility. - Taxpayers can claim a total of HK$260,000 allowance for each child in the first two years following childbirth. ($1 = 7.7789 Hong Kong dollars) https://www.reuters.com/markets/asia/highlights-hong-kong-leader-john-lees-fourth-policy-address-2025-09-17/
