2025-09-16 11:18

LONDON, Sept 16 (Reuters) - Sterling gained against the dollar on Tuesday, after weaker British jobs data did not shake investors' belief that the Bank of England would keep rates steady, while the U.S. currency was under more pressure from a likely Federal Reserve rate cut. Sterling rose as much as 0.3% to $1.3645, its highest in more than two months, before paring some of those gains to trade at $1.3624. The pound weakened against the euro , which rose 0.2% to 86.65 pence, consolidating within its recent narrow range. Sign up here. While the Fed is expected to cut rates by 25 basis points this week amid softening U.S. jobs data, the BoE is widely seen holding steady, which in theory would attract more investors to the higher-yielding pound. A report on Tuesday from the Office for National Statistics showed payrolls fell for a seventh consecutive month, while private sector wage growth slowed to 4.7% between May and July, down from 4.8% in the previous three months. The data suggest Britain's labour market is cooling, which could ease some concern among some BoE officials over persistent inflation pressures, but was unlikely to move the needle for Thursday's rate decision. "UK labour data showed tentative signs weakness may have bottomed out over the summer, though the figures are unlikely to alter the near-term BoE outlook," said Michael Brown, senior research strategist at Pepperstone. MUFG senior currency analyst Lee Hardman said the pound would likely get a continued lift from investor expectations of a divergence between BoE and Fed monetary policy. Elsewhere, the dollar was a touch weaker against a basket of peers , with investors fully expecting a Fed rate cut on Wednesday. On the political front, the United States and Britain will announce more than $10 billion in energy and tech deals during President Donald Trump's second state visit this week, as London seeks progress on steel tariffs under a broader trade pact. https://www.reuters.com/world/uk/sterling-rises-against-dollar-fed-boe-policy-divergence-2025-09-16/

2025-09-16 11:09

Law firms represent clients against Trump despite deals Cases involve transgender rights and "sanctuary cities" Other cases involve immigration and an offshore wind farm Firms pledged to do pro bono work for Trump causes Sept 16 (Reuters) - When nine U.S. law firms struck agreements with President Donald Trump in March and April to head off a crackdown on their business, it prompted broad concern that the deals would deter them from taking cases against his policies. Months later, at least four of them are involved in lawsuits opposing Trump's administration in cases involving transgender rights, immigration, tariffs and wind power, court records show. The four firms are Latham & Watkins; Willkie Farr & Gallagher; Skadden, Arps, Slate, Meagher & Flom; and Milbank. They represent clients that have sued the administration since May, after the agreements were reached. Sign up here. It is unclear whether these four firms or others may still be steering clear of certain cases for fear of drawing Trump's ire or imperiling their agreements with the Republican president. Some legal experts said law firms may be wrestling with competing pressures, since representing clients against the government is a key driver of business and prestige. "A lot of litigation is opposed to the federal government," said Michael McCabe, a business lawyer who advises other attorneys on ethics matters. "All of that work is an important part of a law firm economy." A joint venture backed by Orsted (ORSTED.CO) , opens new tab retained Latham & Watkins to sue the administration this month after the federal government halted construction on the Danish energy company's Rhode Island offshore wind farm. Willkie Farr is representing school districts in Virginia's Arlington and Fairfax counties that sued the administration last month. They are seeking to protect federal funding threatened by Trump's Department of Education, which decided that their policies of letting transgender students use bathrooms and locker rooms that align with their gender identity violated federal education law that bars sex discrimination. Milbank in June began representing small businesses that sued to challenge Trump's use of emergency powers to impose sweeping tariffs. The firm in July also began representing the New Jersey cities of Newark and Hoboken, which were accused by the administration of unlawfully shielding residents from federal immigration enforcement. Skadden partnered in May with the National Immigrant Justice Center, a nonprofit that advocates for low-income immigrants, to sue the administration on behalf of a Mexican woman who was denied a visa designed for crime victims. The firms and the White House did not immediately respond to requests for comment. 'WEAPONIZING' THE LEGAL SYSTEM Trump, who returned to office in January, issued executive orders against five firms that he accused of "weaponizing" the legal system against him and his allies and promoting workplace diversity policies he called discriminatory. The directives sought to strip the firms of security clearances and restrict their access to federal officials, buildings and contracting work. The targeted firms had represented Trump's political adversaries or clients bringing legal challenges to his policies, or had employed attorneys who took part in past government investigations aimed at the president. Four of the targeted firms sued Trump to challenge the executive orders. A fifth, Paul Weiss, reached an agreement with Trump, and the president rescinded the directive against the firm. All told, nine firms entered into such agreements, pledging to donate a total of nearly $1 billion in free legal work to causes favored by the administration. The agreements, touted by Trump on social media, did not appear to bar the firms from representing clients in cases against the administration, but critics warned they could have a chilling effect. The firms "decided to permit President Trump to suppress their speech and dictate who they can and cannot take as clients," U.S. Senator Richard Blumenthal and U.S. Representative Jamie Raskin, both Democrats, wrote in an April 18 letter to five of the firms that made such agreements. In internal emails and written responses to the lawmakers, leaders of firms have defended their deals and said they retain control over the legal matters they handle. The four firms that sued Trump won rulings declaring the orders a violation of the U.S. Constitution's First Amendment protections against government abridgment of freedom of speech. The administration has appealed those decisions. A Reuters investigation in July found that dozens of major law firms, wary of retaliation, have broadly scaled back pro bono work, workplace diversity initiatives and litigation that could place them in conflict with Trump. Reuters also found that top firms had pulled back from litigation against the U.S. government. IMPORTANT CLIENTS Legal industry experts said the lawsuits involving the four firms that have reached agreements with Trump include the kinds of matters large firms cannot easily give up, serving important clients or spearheaded by key lawyers at the firms. For example, Orsted has relied on Latham for years, turning to the firm in a $680 million financing deal with JPMorgan last year and in prior litigation related to a New Jersey offshore wind project during Democrat Joe Biden's presidency. Orsted's joint venture Revolution Wind said in its new lawsuit that it already had spent about $5 billion on the Rhode Island project halted by the administration and could lose another $1 billion if it is not restarted. The lawsuit accuses the administration of violating its due process rights under the Constitution and violating federal laws and regulations. The company did not respond to a request for comment on its work with Latham. Arlington and Fairfax counties, located in the Washington suburbs, are being represented by a leader of Willkie's government investigations practice, Timothy Heaphy. He previously served as U.S. attorney for the Western District of Virginia, appointed to that post by Democratic former President Barack Obama. The Arlington and Fairfax school boards are appealing a federal judge's dismissal of their lawsuits. They did not respond to questions about their relationship with Willkie. Milbank partner Neal Katyal, who often argues cases before the U.S. Supreme Court and is a Trump critic, has had a lead role in the tariff litigation brought by small businesses since June. Katyal and Milbank's Gurbir Grewal, a former New Jersey attorney general who was the U.S. Securities and Exchange Commission's enforcement director under Biden, are defending Newark and Hoboken against Trump's "sanctuary cities" crackdown. Milbank has the experience in arguing cases before the Supreme Court needed in the tariff case, according to Sara Albrecht, board chair of the Liberty Justice Center, which is serving as co-counsel. Lower courts sided with the plaintiffs, and the Supreme Court is due in November to hear arguments in the Justice Department's appeal. Officials for Newark and Hoboken did not respond to requests for comment. Skadden and the National Immigrant Justice Center had worked together on asylum cases before Trump's second term as president. Neither responded to requests for comment. https://www.reuters.com/legal/government/some-law-firms-that-cut-deals-with-trump-take-cases-opposing-his-administration-2025-09-16/

2025-09-16 11:06

Sept 16 (Reuters) - Citigroup has set a year-end price target of $4,300 for ether, the world's second-largest cryptocurrency, citing investor demand and growing interest in ethereum-based use cases such as stablecoins and tokenization. The Wall-Street brokerage's target is still below ether's record high of $4,955.14, which it hit last month. Sign up here. Citi said ether's recent price strength may be driven more by sentiment than fundamentals. "Current prices are above activity estimates, potentially driven by recent buying pressure and excitement over use-cases," Citi said in a note dated Monday. Ether has increasingly become the preferred token for companies seeking more active returns. Unlike bitcoin , which relies solely on price appreciation, ether can be staked, allowing holders to earn yields by supporting the ethereum network. Yet, Citi expects ETF flows into ether, a proxy for demand, to be smaller than bitcoin. Last month, Standard Chartered raised its year-end target for ether to $7,500 from $4,000, citing stronger industry engagement and rising corporate holdings. StanChart said the stablecoin sector could grow eightfold by 2028, driving up ethereum network fees and demand. Citi also outlined a bull case of $6,400, driven by rising activity and broader adoption of ethereum-based applications, and a bear case of $2,200 in the event of macroeconomic weakness and falling equity markets. https://www.reuters.com/business/finance/citi-forecasts-ethers-year-end-target-4300-2025-09-16/

2025-09-16 10:59

Iranian oil discounts widen on high stock levels, quota limits US sanctions target Qingdao Port for handling Iranian oil Shipments diverted to other ports after US sanctions -sources Crude imports at Dongjiakou fall, Huangdao's volume rises-Kpler SINGAPORE, September 16 (Reuters) - Discounts for Iranian oil in China have widened on record stock levels at a major refining hub and as a shortage of import quotas towards year-end hindered buying by independent processors, six trade sources told Reuters. Slowing demand from Chinese independent refiners in Shandong province, known as teapots, adds to pressure on Iran to sustain its oil revenue amid Western sanctions aimed at curbing its uranium enrichment programme. Sign up here. Those sanctions have reduced shipments into a key Chinese port, according to data analytics firm Kpler. Washington most recently imposed sanctions on August 21 on Qingdao Port Haiye Dongjiakou Oil Products, controlled by local government-backed Qingdao Port International (601298.SS) , opens new tab, for receiving Iranian oil on designated tankers. The Haiye Dongjiakou terminal, the sixth in China to be blacklisted by the U.S., previously handled 130,000-200,000 barrels per day of Iranian crude, making it one of China's largest receiving terminals for such oil, two of the sources said. That terminal suspended operations shortly after the U.S. penalty, three people familiar with the terminal said. China has bought over 90% of Iranian oil exports in the past few years, with January-August imports at an average of 1.43 million bpd, up 12% annually, according to estimates by tanker tracker Vortexa. To circumvent sanctions, dealers brand Iranian oil mostly as Malaysian, after trans-shipment near Malaysian waters. China defends its oil trade with Iran as conforming with international law, and describes unilateral U.S. sanctions as illegitimate. Haiye Dongjiakou did not respond to calls and emailed requests for comment. Qingdao Port International did not respond to an emailed request for comment on the sanctions impact. IMPORTS DROP, DISCOUNTS WIDEN Crude imports at Dongjiakou port have declined 65% this month, Kpler senior analyst Ying Cong Loh said, citing data as of September 15. A separate terminal at the port, Qingdao Shihua Crude Oil Terminal, has not been sanctioned. Traders have been diverting Iranian shipments to nearby terminals if the vessels have not been sanctioned, three trade sources dealing with Iranian oil said. They declined to be named due to the sensitivity of the matter. Iranian oil imports at Huangdao, another discharge hub in the broader Qingdao Port area, are expected to rise to 229,000 bpd in September, twice the 123,000 bpd in August, Kpler's predictive data showed last week. Discounts for Iranian Light crude widened to over $6 a barrel versus benchmark ICE Brent this week for October-arrival shipments, five trade sources said, compared with around $5 a barrel two weeks ago and $3 in March. Record crude stocks in Shandong depressed refining margins at smaller independents, while a shortage of government-issued import quotas hindered buying, the sources added. Deeper discounts also reflect a price reduction by Iranian suppliers to account for sanctions-linked costs for customers, an Iranian trade source familiar with Tehran's oil marketing said in late August. Shandong's onshore commercial crude oil inventories reached a record 293 million barrels as of August 22, 20 million barrels above levels at the start of July, much of it due to Iranian oil, according to tanker tracker Vortexa Analytics. https://www.reuters.com/business/energy/discounts-iranian-oil-widen-china-record-stocks-even-sanctions-curb-shipments-2025-09-16/

2025-09-16 10:55

BEIJING, Sept 16 (Reuters) - Shares of top Chinese polysilicon producer GCL Technology (3800.HK) , opens new tab shot higher on Tuesday as the market cheered a company fund-raising plan that investors see as a step towards cutting chronic overcapacity in the industry. GCL will use an estimated HK$3.505 billion ($450.66 million) in proceeds from a share sale for "establishing a capital reserve for the reform of the supply-side to promote the structural adjustment of polysilicon production capacity", as well as for growing other business lines, it said in a Hong Kong stock exchange filing earlier in the day. Sign up here. Hong Kong-listed GCL's shares closed up 3.95% at HK$1.31 ($0.17) per share, after initially gaining more than 5%. In late July, GCL detailed plans by China's largest polysilicon producers to create a 50 billion yuan ($7 billion) fund to acquire and shut at least 1 million metric tons of lower-quality polysilicon capacity, in a bid to pare back overcapacity in the industry and boost prices. "It is a first answer to the question of what means could be used to finance the envisaged $7 billion fund, and it is a confirmation that the players are going forward with implementing the plan," said Johannes Bernreuter, founder of industry consultancy Bernreuter Research. But he said even with that funding in hand "it would still be a long way to go" to reach $7 billion. Some sell-side investors reacted negatively to the news that GCL was selling shares at a discount, suggesting a lack of confidence that its share price would recover in future, Jefferies analyst Alan Lau told Reuters. GCL agreed to sell 4.7 billion shares at HK$1.15 per share to hedge fund Infini Capital Management, it said in the filing. GCL said it will also put some of the capital into its silane gas business. It said demand for silane gas is growing because of the transition to back-contact solar cells, which have all electrical contacts on the rear side of the cell, so the entire front surface of the cell can be exposed to sunlight. The company will also raise another HK$1.9 billion for working capital purposes and loan repayment. ($1 = 7.7775 Hong Kong dollars) https://www.reuters.com/sustainability/climate-energy/china-polysilicon-giant-gcl-raise-capital-supply-reform-shares-jump-2025-09-16/

2025-09-16 10:49

Sept 16 (Reuters) - Futures linked to Canada's main stock index ticked down on Tuesday as investors remained on edge ahead of domestic CPI data due later in the day, while anticipating rate-cut resumptions from the Bank of Canada and the U.S. Federal Reserve this week. Futures on the S&P/TSX Index (.SXFcv1) , opens new tab dipped 0.2% at 1,736.20 points by 06:20 ET (1020 GMT), after closing at a record high in the previous session. Sign up here. Global markets, including the TSX, have been scaling record highs over the previous few sessions, with markets fully pricing in a Fed rate cut in September and seeking hints on further rate cuts. The BoC is widely expected to cut by a quarter point as a weakening labor market and slowing economic activity increase pressure on the central bank to resume its cycle of lowering rates. In other news, the U.S. Senate confirmed Stephen Miran to the Fed's Board of Governors in a narrow vote ahead of the policy meeting, while a U.S. appeals court did not allow President Donald Trump to fire Fed Governor Lisa Cook. In commodities, gold was at record highs, helped by a softer dollar, while copper retreated from multi-month highs on profit taking. Meanwhile, oil prices , were steady. Canada's antitrust regulator said it would review the proposed $53 billion merger of miners Anglo American (AAL.L) , opens new tab and Teck Resources (TECKb.TO) , opens new tab, which would be the second-largest merger in mining if approved. Toronto's S&P/TSX composite index (.GSPTSE) , opens new tab surpassed a record high on Monday, tracking its Wall Street peers and receiving a boost from energy and technology shares. FOR CANADIAN MARKETS NEWS, CLICK ON CODES: TSX market report Canadian dollar and bonds report CA/ Reuters global stocks poll for Canada , Canadian markets directory https://www.reuters.com/markets/europe/tsx-futures-dip-investors-await-domestic-cpi-data-possible-rate-cuts-2025-09-16/