2025-09-11 19:26
Rubio makes unusual surprise appearance to introduce nominee Warm remarks at hearing come as relations have been reset US wants India to stop buying Russian oil Nominee says India-US ties are more important than India-China WASHINGTON, Sept 11 (Reuters) - U.S. President Donald Trump's nominee to be ambassador to India said on Thursday that Washington and New Delhi are "not that far apart" on tariffs at a hearing in which he and Trump's fellow Republicans described warm bilateral ties despite recent tensions. In a highly unusual move, Secretary of State Marco Rubio made a surprise appearance at the hearing to introduce Sergio Gor, the nominee. India is "one of the top relationships the United States has in the world today in terms of the future of what the world's going to look like," Rubio said. Sign up here. Successive U.S. administrations have courted India as a potential counterweight to an increasingly powerful China, but Trump's trade war has severely tested the relationship. Talks on lower tariff rates collapsed after India, the world's fifth-largest economy, resisted opening its vast agricultural and dairy sectors. Bilateral trade is worth more than $190 billion each year. Trump first imposed additional tariffs of 25% on imports from India, then said they would double to 50% from August 27 as punishment for New Delhi's increased purchases of Russian oil, as Washington works to end the war in Ukraine. "We're not that far apart on a deal on these tariffs," Gor, a close Trump aide who is director of the White House Presidential Personnel Office, told the Senate Foreign Relations Committee. "I do think it will get resolved in the next few weeks," Gor said. RESET IN RELATIONS The hearing underscored a recent shift in tone the Trump administration's dealings with New Delhi. Senate aides said they could not remember another recent hearing in which the secretary of state came to introduce an ambassadorial nominee. The hearing also happened more quickly than usual. Trump announced on August 22 that Gor was his choice for the post in New Delhi and to serve as a special envoy for South and Central Asian Affairs. Republican senators said it would benefit India to have an ambassador who is so close to Trump. "There are few relationships that are as critical for our national security or for our economics," said Senator Bill Hagerty of Tennessee, who was ambassador to Japan during Trump's first term. Trump said on Tuesday his administration is continuing negotiations to address trade barriers with India and that he would talk to Modi, in a sign of a reset after weeks of diplomatic friction. Asked if he would commit to pushing to ensure that a summit meeting of the Quad, which groups India with Australia, Japan and the United States, would take place as scheduled later this year, Gor said: "Without committing to exact dates ... the president is fully committed to continue to meet with the Quad and strengthening it." India has been expected to host a November Quad summit, with a more explicit focus on security regarding China than previously, but a person familiar with the matter told Reuters this month that Trump has yet to schedule a trip there. "While we might have our moment of hiccups right now, we are on the track of resolving that," Gor said. "Our relationship with the Indian government, with the people of India, extends many more decades, and it's a much warmer relationship than they have with the Chinese." https://www.reuters.com/world/india/trump-india-ambassador-nominee-touts-warm-us-india-ties-sees-tariff-deal-soon-2025-09-11/
2025-09-11 19:18
IEA expects oversupply to increase with OPEC output boost Saudi Arabia's crude oil exports to China set to surge in October US consumer prices rise, Fed likely to cut rates NEW YORK, Sept 11 (Reuters) - Oil prices slid on Thursday, settling about 2% lower as concerns over possible softening of U.S. demand and broad oversupply offset threats to output from the conflict in the Middle East and the war in Ukraine. Brent crude futures fell $1.12, or 1.7%, to settle at $66.37 a barrel. U.S. West Texas Intermediate (WTI) crude fell $1.30, or 2.0%, to settle at $62.37. Sign up here. The International Energy Agency said in its monthly report that world oil supply will rise more rapidly than expected this year due to planned output increases by OPEC+, the Organization of the Petroleum Exporting Countries and allies like Russia. "Oil prices are falling today in response to bearish IEA headlines, which suggest massive oversupply on the oil market next year," said Carsten Fritsch, an analyst at Commerzbank. On Sunday, OPEC+ agreed to raise production from October. But in another report, however, OPEC kept non-OPEC supply and demand forecasts for the year unchanged, citing steady demand. The market was torn between a perceived supply shortage due to a rise in tensions in the Middle East and Ukraine and actual oversupply from higher OPEC+ production and swelling stocks, said Tamas Varga, an analyst at PVM Oil Associates. OPEC leader Saudi Arabia's crude oil exports to China are set to surge, several trade sources told Reuters on Thursday, with state-controlled energy firm Aramco shipping about 1.65 million barrels per day in October, up sharply from 1.43 million bpd allocated in September. The market is also questioning how long China could continue to absorb barrels and keep Organization for Economic Co-operation and Development (OECD) inventories low, said Giovanni Staunovo, an analyst at UBS, adding that investors were also watching for further sanctions affecting Russian oil. In Russia, the world's second-biggest producer of crude behind the U.S. in 2024, revenue from crude and oil products sales declined in August to one of the lowest levels seen since the start of the conflict in Ukraine, the IEA said. U.S. Energy Secretary Chris Wright and European Commissioner for Energy and Housing Dan Jorgensen discussed efforts to restrict Russian energy trade during talks in Brussels, with Jorgensen saying the European Union's planned deadlines were ambitious but there is a need to speed the process. In India, meanwhile, the largest private port operator, Adani Group has banned entry at its ports of tankers sanctioned by Western countries, three sources said and documents show. The move could hit Russian oil supplies for two Indian refiners. INTEREST RATES AND INFLATION U.S. consumer prices in August increased by the most in seven months, fueled by higher housing and food costs. A surge in first-time applications for unemployment aid last week kept feeding expectations that the Federal Reserve will cut interest rates next Wednesday, which could boost economic growth and demand for oil. The European Central Bank left interest rates unchanged on Thursday, as expected, but offered no clues about its next move. Investors continue to bet the EU economy will need more support next year, yet traders curbed their bets on another ECB rate cut this cycle. Another move is now seen as a coin toss. https://www.reuters.com/business/energy/oil-prices-slide-2-worries-about-global-oversupply-us-demand-2025-09-11/
2025-09-11 18:55
Southwest considers wide-body aircraft for long-haul international routes New premium lounges to boost loyalty revenue and credit card appeal Southwest's margins lag behind Delta and United Airlines CHICAGO, Sept 11 (Reuters) - Southwest Airlines (LUV.N) , opens new tab CEO Bob Jordan said on Thursday the company is looking at long-haul international flights and premium airport lounges as part of its turnaround strategy. Jordan said while the company will have to look at a wide-body aircraft for long-haul international service, it could use a "more risk-tolerant" approach at first and choose a narrow body to serve those routes. Sign up here. The Dallas-based carrier, which operates mostly domestic flights with a fleet of Boeing 737 jets, has been struggling to find its footing after the COVID-19 pandemic. Its lackluster earnings have fueled pressure to revamp its business model. It has begun charging customers for checked bags, ending a free policy. It has also rolled out a new basic-economy fare and would switch to a new assigned seat policy in January, replacing its previous open seating model. In the past, Jordan has talked of the company's aspirations to launch flights to Europe. Industry experts say a lack of long-haul international flights limits Southwest's appeal to customers and has deprived the airline of a high-margin revenue stream. Since February, Southwest has launched partnerships with foreign carriers Icelandair, China Airlines, and EVA Air to broaden its network. The company has said it is exploring new partnerships from all parts of the globe. But Jordan said the company wants to serve long-haul international routes itself. "We want to serve those destinations as well," he told a Morgan Stanley conference, adding the plans were still in the initial stages. Southwest once boasted a record 47 consecutive years of profit prior to the pandemic. Since then, it has struggled to regain sustained profitability. Its margins currently pale in comparison with those of rivals Delta (DAL.N) , opens new tab and United Airlines (UAL.O) , opens new tab. Many of Southwest's recent pivots are aimed at wooing high-spending travelers. Jordan said the company ends up losing customers to other carriers because it currently does not fly to destinations like London or have premium airport lounges. He said the lounges are also expected to drive up the company's loyalty revenue as they would make its co-branded credit cards more attractive to customers. "If we're going to continue to drive relevance, even as the largest domestic carrier, we've got to continue to meet the needs of our customers," Jordan said. https://www.reuters.com/business/southwest-airlines-eyes-long-haul-flights-strategic-overhaul-2025-09-11/
2025-09-11 18:45
US consumer prices increase more than expected in August US weekly jobless claims increase as labor market softens Bullion hit a record high of $3,673.95 on Tuesday Fed set to announce its next policy decision on Sept. 17 Sept 11 (Reuters) - Gold prices pared losses on Thursday, holding at near-record highs as soft U.S. jobs data outweighed concerns from firmer inflation data, with investors still betting on the Federal Reserve easing interest rates next week. Spot gold was down 0.2% at $3,632.49 per ounce, as of 2:20 p.m. EDT (1820 GMT). Bullion had hit a record high of $3,673.95 on Tuesday. U.S. gold futures for December delivery settled 0.2% lower at $3,673.60. Sign up here. Prices were down as much as 0.6% before the U.S. economic data. "Gold is being 'saved' by the sharp jump in weekly initial jobless claims, which hit a three-year high at 263,000 while core CPI remains elevated at 0.3% month-on-month," said Tai Wong, an independent metals trader. Recent price movements point to some buyer fatigue, but gold's outlook over the next few months remains constructive, limiting the scope for a significant pullback, Wong added. U.S. consumer prices rose more than expected in August, recording the largest annual increase in seven months, while weekly jobless claims also jumped sharply, highlighting softening labor market conditions. Data on Thursday showed U.S. producer prices unexpectedly declined in August, reflecting weaker trade services margins and muted goods costs. Coupled with last week's soft nonfarm payrolls, along with revisions that revealed 911,000 fewer jobs in the 12 months through March, the figures pointed to cooling underlying momentum in the economy and added weight to expectations for Fed easing. Markets are fully pricing in a 25-basis-point cut at the Fed's policy meeting next Wednesday, with a slim chance of a half-point cut, CME FedWatch data , opens new tab showed. The central bank paused its easing cycle in January as it weighed the inflationary impact of tariffs. The yellow metal has climbed 38% so far this year and is often seen as thriving in lower-rate settings, valued by investors as a hedge against inflation and broader uncertainty. Slowing growth, elevated inflation, geopolitical shifts and diversification away from U.S. assets and the dollar will continue to underpin investment demand and central bank buying, supporting gold, ANZ said in a note. Elsewhere, spot silver was up 1% at $41.57 per ounce. Platinum fell 0.3% to $1,382.25 and palladium gained 1.5% to $1,191.46. https://www.reuters.com/world/india/gold-pares-losses-labor-market-weakness-bolsters-fed-easing-expectations-2025-09-11/
2025-09-11 17:59
Wright promotes fossil fuels as key to stable energy Trump administration's stance contrasts with global climate goals Environmentalists urge focus on cleaner energy alternatives BRUSSELS/WASHINGTON, Sept 11 (Reuters) - U.S. Energy Secretary Chris Wright downplayed the risks of climate change as he promoted Washington's return to a "commonsense energy policy" on Thursday, while the Trump administration worked to boost oil and gas sales to Europe and other allies. Wright spoke to reporters after meeting the European Union's energy commissioner Dan Jorgensen in Brussels. U.S. Interior Secretary Doug Burgum has also been in Europe this week aiming to seal energy supply deals that Washington hopes will strengthen its influence in the region while weakening Russia's. Sign up here. Wright said the benefits of stable energy from fossil fuels offset any risks, adding that the rise of natural gas production was the "biggest driver of decarbonisation" in the United States, which is rolling back on renewables projects such as offshore windfarms. His comments reflect the degree to which the Trump administration is at odds with the United Nations, global scientists and the EU, which has put emissions targets at the heart of policy-making. Natural gas burns cleaner than coal but still produces significant carbon emissions from smokestacks, and methane, a potent greenhouse gas, from leaks. Wright questioned the urgency of climate change and its impact on human life. "We kind of struggle to find what is it from climate change that's causing greater risks to humans," he said. "A warmer, wetter world is more conducive to growing crops." Despite global evidence to the contrary, Wright said there was no upward or downward trend in the frequency of extreme weather events, and that protections offered by petrochemicals, such as clothing and heating, meant deaths from such events had fallen over time. More than 100 people including children at a summer camp died during catastrophic flooding in Texas after extreme rain in July. Climate scientists have warned the risk of extreme rain is increasing due to warming global temperatures. Reinsurance company Swiss Re (SRENH.S) , opens new tab said in an April report that total losses from natural catastrophes - not all climate related - and including those not covered by insurance, came in at $318 billion in 2024 up from $292 billion in 2023 and significantly above longer-term averages. The report said the effects of climate change played a role in "compounding losses". "The impact of hydrocarbons, I would say, has been massively larger at making safer, longer, healthier lives. It's causing some warming, but is the net impact of hydrocarbon consumption to endanger humans?" Wright added. David Doniger, a senior attorney at New York-based environmental group the Natural Resources Defence Council, said the secretary should lead the way to an abundance of cleaner energy that can meet economic objectives without destroying the climate. "The secretary of energy should not be a salesman for one kind of energy, either to Americans or to the rest of the world," Doniger added. https://www.reuters.com/sustainability/cop/us-energy-secretary-downplays-climate-risks-washington-seeks-eu-gas-deals-2025-09-11/
2025-09-11 17:45
Lagarde says euro zone bond market is orderly Stresses countries must stick to budget rules FRANKFURT, Sept 11 (Reuters) - European Central Bank President Christine Lagarde signalled no rush on Thursday to intervene in the bond market to support France, which has become engulfed in a political and budget crisis. France's political instability and its failure to tackle ballooning public debt have unnerved investors, who have been demanding a growing premium to lend to the French government in the bond market. Sign up here. The ECB has the power to step in and buy government bonds to stem an "unwarranted, disorderly" rise in borrowing costs under its Transmission Protection Instrument, as long as a country complies with the European Union's budget rules. LAGARDE SAYS RESPECT EU BUDGET RULES Lagarde appeared to play down the prospect of an intervention, saying the euro zone bond market was still functioning well and all countries needed to respect the EU fiscal framework. "Euro area sovereign bonds are orderly and are functioning smoothly with good liquidity," Lagarde, a former French finance minister, told reporters after the ECB decided to keep rates steady. French Prime Minister Francois Bayrou's government fell earlier this week after he failed to secure parliamentary support for his plans to reduce the budget deficit, which last year was nearly double the EU's 3% of GDP limit. France is the EU's second-largest economy. Its budgetary and political crisis threatens to weaken the bloc, politically and economically, just as it tries to navigate U.S. trade tariffs. Stressing she was talking about the euro zone as a whole and not just France, Lagarde said that the ECB needed "a well-functioning" bond market to control inflation. But she added governments must stick to EU rules. "There is also a set of rules... and the member states have to adhere to it," she said. "I'm sure that all governments, wherever located, will want to operate on the basis of that fiscal framework." INVESTORS DEMAND SIMILAR PREMIUM FROM FRANCE AND ITALY France's public debt has climbed to 113.9% of gross domestic product, in part due to successive governments' largesse during the COVID-19 and cost-of-living crises. Investors are now demanding a similar premium - as measured by the spread over Germany's 10-year bond yields - from France as from Italy at around 80 basis points. Bayrou has been replaced by Sebastien Lecornu, a loyalist of President Emmanuel Macron and his fifth prime minister in less than two years. "I'm confident that the policymakers... will take it to heart in that period of uncertainty to reduce uncertainty as much as possible," Lagarde said. A debt crisis centred around Greece nearly brought down the euro in the 2010s before then ECB President Mario Draghi pledged to do "whatever it takes" to preserve the single currency - an implicit reference to buying bonds. ECB board member Isabel Schnabel told Reuters last week that France needed to consolidate its finances and foster potential growth but she did not see these issues as having wider implications for the euro. https://www.reuters.com/business/finance/ecbs-lagarde-signals-no-rush-rescue-france-bond-market-2025-09-11/
