2025-09-09 21:22

Sept 9 (Reuters) - U.S. liquefied natural gas producer NextDecade (NEXT.O) , opens new tab said on Tuesday it has reached a positive final investment decision for the fourth liquefaction plant, known as a train, of its Rio Grande export project in Texas. Shares of the company rose nearly 2% in extended trading as the announcement marks the fourth positive FID for an LNG development project in the U.S., the world's largest exporter of the superchilled fuel. Sign up here. The LNG sector in the U.S. has seen a pick-up in commercial activity after President Donald Trump lifted a moratorium on new export permits soon after coming into office in January. LNG developers typically reach an FID on projects once they have secured enough supply deals to obtain the necessary financing for construction. Train 4 has an expected LNG production capacity of nearly 6 million tonnes per annum, bringing the total expected production capacity under construction at Rio Grande export facility to about 24 mtpa. The company said Train 4 is commercially supported by 4.6 mtpa of 20-year agreements with Abu Dhabi National Oil Company , opens new tab (ADNOC), TotalEnergies (TTEF.PA) , opens new tab, and Saudi's Aramco (2223.SE) , opens new tab. The completion date for Train 4, as well as the first commercial delivery date under the Train 4 LNG deals, is anticipated in the second half of 2030, NextDecade said. Total project costs associated with Train 4 and related infrastructure are expected to be about $6.7 billion, which is being financed using equity and loan commitments. NextDecade has been signing multiple LNG deals from the Brownsville, Texas facility, which is under construction and has a potential capacity of about 48 million tonnes per annum, to strengthen its position in the international market. Venture Global (VG.N) , opens new tab had greenlit its CP2 LNG project in July, while Cheniere (LNG.N) , opens new tab approved its midscale Trains 8 and 9 and Woodside Energy (WDS.AX) , opens new tab gave the go-ahead on its Louisiana project. The LNG producer said on Monday it had fully commercialized Train 5, which is expected to announce a positive FID in the fourth quarter, with the signing of a 20-year supply agreement with ConocoPhillips. https://www.reuters.com/business/energy/nextdecade-greenlights-train-4-rio-grande-lng-export-project-texas-2025-09-09/

2025-09-09 21:08

ORLANDO, Florida, Sept 9 (Reuters) - TRADING DAY Making sense of the forces driving global markets Sign up here. By Jamie McGeever, Markets Columnist Stocks, the dollar, commodities and bond yields mostly rose on Tuesday, but the moves lacked momentum and conviction as investors digested record downward revisions to U.S. job growth figures and looked ahead to U.S. inflation data later in the week. In my column today I look at next week's Fed meeting. If the Fed cuts rates, as expected, it will be doing so with inflation around 3%, notably above its 2% target. Lowering rates and indicating there's more to come could be a signal 3% is the new 2%. 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: * Revisions or revisionism? The number of new U.S. jobs created in the year through March was almost a million lower than originally estimated, Bureau of Labor Statistics annual benchmark revision showed on Tuesday. That was the largest downward revision on record. But what, if anything, does that mean for Fed policy? One might have thought it would strengthen bets for a 50 basis point rate cut next week. But that probability actually shrank a bit, around 5 bps of easing was taken out of the 2026 curve, and the dollar strengthened. Buy the rumor, sell the fact? * I Me Miners Anglo American and Teck Resources are to merge in a $53 billion deal, marking the second-biggest mining M&A deal ever and creating the world's fifth-biggest copper company. Investors in both firms liked it - Anglo shares rose 9% and Teck shares leaped 11%. Dealmaking activity has increased a lot this year. Global M&A hit $2.6 trillion in the first seven months of the year, the highest since 2021, and Morgan Stanley analysts reckon tight spreads, easy financial conditions, and a Fed willing to let the economy "run hot" will keep that going. * Inflation Inflation is always a talking point, but the next few days will give a good snapshot of what the global landscape looks like - consumer price data from Brazil, India and China, and producer prices from Mexico, China and the U.S. are all due out by Friday. Then there's the big one on Thursday, the U.S. CPI inflation report for August. Consensus forecasts of 2.9% headline and 3.1% core annual rates, respectively, aren't expected to stop the Fed from cutting interest rates next week. But upside surprises could make that decision a lot less straightforward. Fed rate cut now signals 3% inflation is the new 2% The Federal Reserve is widely expected to cut interest rates next week even though inflation is still around 3%, a full percentage point above the official goal. This raises an uncomfortable question: is the central bank's 2% inflation target still viable? Data on Thursday is expected to show that annual core CPI inflation held steady in August at 3.1%. Annual core PCE inflation, the Fed's preferred measure, was 2.9% in July. Easing policy with inflation at this level would be a rare step. Of course, the Fed cut rates late last year when core CPI was even higher at around 3.3%, though that move drew fire because unemployment didn't rise as Fed officials had warned and long-dated yields rose. If you want to find the last time before this cycle that the central bank eased policy with core PCE inflation at 3%, you have to go all the way back to the early 1990s, before the Fed unofficially adopted its 2% target. That's a long time ago, when the economy was in a very different place. The internet as we know it barely existed, there were no smartphones, and 'apps' was the abbreviation for 'appearances' in soccer players' stats. So the prospect of the Fed easing policy for the second time in a year with core inflation at 3% is a big deal – and may be yet another sign that the economic orthodoxy of recent decades is being tested or trashed. Take your pick. UNORTHODOX Inflation hawks fear it's the latter. The federal government's debt and deficit are at record levels for non-crisis, peacetime, and there are fears that long bond yields could start climbing again. But markets don't seem too worried. To be sure, inflation fears are reflected in some asset prices, not least gold, which is up nearly 40% this year, printing record highs on a near daily basis. But look around, and it's difficult to argue that financial markets are overly worried about the potential loosening of the Fed's 2% target. Indeed, the 2s/30s yield curve may have steepened around 70 basis points this year to a four-year high of 134 bps last week, but the 30-year yield is actually down slightly this year. Meanwhile, U.S. corporate bond spreads are at historic tights, and Wall Street continues to hit record highs. Of course, equity markets have historically tended to sizzle as inflation has heated up, though usually not for long and certainly not once consumer inflation expectations become unanchored. We're not there yet, but we are at an interesting juncture. HIGH EXPECTATIONS Academic research suggests consumers are among the least accurate forecasters when it comes to inflation, but policymakers have long been loath to dismiss them. And right now, 2% is not on consumers' inflation horizon. A New York Fed survey on Monday showed consumers' one-year outlook rose to 3.2% in August from 3.1% in July, while the three- and five-year forecasts were unchanged at 3% and 2.9%, respectively. The University of Michigan's latest one- and five-year forecasts are 4.8% and 3.5%. So perhaps 3% is starting to become the new 2%. U.S. President Donald Trump would certainly seem to support this, given his apparent desire to run the economy hot. And the Fed looks set to shrug off inflation risks – and ease in a 3% environment – for the second time in a year. Is this a misstep by the Fed, or even policy error? Not necessarily. 'HYSTERIA AND DELIRIUM' Retired strategist Jim Paulsen questions the "constant hysteria" around inflation exceeding the Fed's target. To get some perspective on this "2% target delirium," Paulsen notes that annual headline CPI has averaged 2.9% over the last two years and is currently only 2.7%. Price stability, anyone? He also points out that from 1992 to 1999, a period often viewed as "economic nirvana," headline CPI averaged 2.6%. "It's time to retire the 2% inflation target. We have always put smart, street-savvy, driven, and economically war-tested individuals on the FOMC. Let's let them use their venerable judgments to do their job without tying their hands to some random target which has never been well tested," Paulsen wrote on Monday. A 3% inflation print on Thursday followed by a rate cut next week might suggest we are heading in that direction. 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/business/global-markets-trading-day-graphic-2025-09-09/

2025-09-09 21:02

TSX ends up 0.1% at 29,063.01 Eclipses Friday's record closing high Teck shares jump 11.5% after merger deal Energy adds 1.6% as oil settles higher Sept 9 (Reuters) - Canada's commodity-heavy main stock index edged up to a record high on Tuesday as energy stocks climbed and Teck Resources Ltd (TECKb.TO) , opens new tab agreed to merge with London-listed miner Anglo American . The S&P/TSX composite index (.GSPTSE) , opens new tab ended up 35.28 points, or 0.1%, at 29,063.01, inching past the record closing high posted on Friday. Sign up here. The S&P 500 U.S. benchmark index also notched a record high close after a downward U.S. payrolls revision supported expectations the Federal Reserve will soon cut interest rates to shore up economic growth. The planned merger between Teck and Anglo American would mark the mining sector's second-biggest M&A deal ever and forge a new global copper-focused heavyweight. "The street seems to be seeing this deal as favorable for both parties," Colin Cieszynski, chief market strategist at SIA Wealth Management, said in a note. Teck's shares jumped 11.5%, while the materials group (.GSPTTMT) , opens new tab added 0.1% to extend its record-setting run. Fed rate cut prospects helped underpin the price of gold . Oil settled 0.6% higher at $62.63 a barrel. The Israeli military said it carried out an attack on Hamas leadership in Qatari capital Doha. Energy (.SPTTEN) , opens new tab rose 1.6%, with shares of Cenovus Energy (CVE.TO) , opens new tab ending 2% higher. U.S. refiner Phillips 66 (PSX.N) , opens new tab said it will acquire the remaining 50% stake in WRB Refining from Cenovus for $1.4 billion. Still, six of 10 major sectors lost ground, including a decline of 0.4% for industrials. https://www.reuters.com/markets/europe/tsx-hits-another-record-high-after-blockbuster-mining-sector-deal-2025-09-09/

2025-09-09 21:02

Congress faces September 30 deadline for extending funding Democratic Representative DeLauro calls White House request 'extreme' Move comes amid Trump-Congress battle over who controls spending WASHINGTON, Sept 9 (Reuters) - The White House is seeking legislation that would extend current federal funding until January 31, avoiding a partial government shutdown beginning October 1, Republican U.S. House of Representatives Majority Leader Steve Scalise said on Tuesday. “That was a suggestion," Scalise told reporters, adding, “We're still working on the dates and how long it would extend, but that hasn't been finalized yet.” Sign up here. A stopgap funding bill, if approved by Congress, would continue federal funding of many Washington programs at the current fiscal year's level, although there potentially could be add-ons for "emergency" accounts, such as for Federal Emergency Management Agency disaster relief efforts. Individual lawmakers could also seek other new initiatives. Some sort of government funding bill is needed by September 30, the end of the current fiscal year when funding expires for a range of federal programs. The White House had no immediate comment. Congress and President Donald Trump are fighting over around $1.6 trillion in "discretionary" government spending out of nearly $7 trillion overall when taking into account programs such as Social Security that are automatically funded, according to Congressional Budget Office estimates. Some of the largest expenditures are for military programs and interest payments on a national debt of $37.4 trillion - an amount that is becoming increasingly worrying to fiscal experts. So far, Congress has not agreed on any of the dozen discretionary appropriations bills to operate an array of agency programs in the fiscal year beginning October 1. This does not include safety-net programs such as Medicare and Medicaid health insurance for the poor, elderly and disabled. Representative Rosa DeLauro, the senior Democrat on the House Appropriations Committee, called the White House move an "extreme request." "This is the latest example of the White House trying to thwart the bipartisan appropriations process that invests in our constituents. Any spending package must protect Democratic priorities and Congress's power of the purse," DeLauro said. Republicans currently hold a 219-212 House majority and a 53-47 majority in the Senate, where they would need at least seven Democrats to vote in favor of a continuing resolution or "CR" to meet that chamber's 60-vote threshold to advance most legislation. The need for prompt action by Congress to avert an interruption in government services comes as Trump has taken actions that some lawmakers and observers contend are eroding lawmakers' power of the purse as set forth in the U.S. Constitution. His administration has so far withheld over $412 billion of congressionally approved spending, according to data compiled by Democratic Senator Patty Murray and DeLauro. The Trump administration expects federal agencies to shed about 300,000 workers this year, Office of Personnel Management Director Scott Kupor said in August. That would be the result of firings, early retirements, resignations and buyouts and would represent a 12.5% decrease in the federal workforce since January. In late 2018 and early 2019 Trump presided over the longest government shutdown in U.S. history: 35 days as he demanded Congress fund the construction of a wall along the U.S.-Mexico border. It ended without Congress meeting his demand. https://www.reuters.com/world/us/white-house-seeks-keep-funding-autopilot-through-january-31-avoid-shutdown-2025-09-09/

2025-09-09 20:46

Equity investors shrug off payrolls revision lower Investors wait on key inflation readings Wednesday and Thursday Expectations for Fed rate cuts intact after jobs review Wall Street indexes gain with record S&P, Nasdaq closes Political turmoil in many countries complicates outlook for FX bond markets NEW YORK/LONDON, Sept 9 (Reuters) - MSCI's global equity index rose on Tuesday while the dollar firmed and Treasury yields climbed ahead of key inflation reports following a sharp downward revision in March U.S. employment levels. The U.S. Labor Department said the economy likely created 911,000 fewer jobs in the 12 months through March than previously estimated, suggesting job growth was already stalling before President Donald Trump's aggressive tariffs on imports. Sign up here. While the report painted a less rosy picture of the U.S. jobs market, investors noted it does not provide any information about job creation since March. Expectations that the Federal Reserve would start cutting interest rates this month remained intact after the revision. But investors still plan on closely watching inflation data due out on Wednesday and Thursday, before the Fed makes its next policy decision on September 17. "The more constructive way to look at this is that the economy has been just fine with half the job creation, and that's what the market has been digesting today," said Julia Hermann, global market strategist at New York Life Investments. "The combination of a strong legacy of earnings, a constructive earnings outlook, paired with marginal Fed support between now and the end of the year, is the most constructive reason to continue participating in the equity market," she added. RATE CUT BETS INTACT Bets on a 25 basis point cut were intact while the probability for a jumbo 50 basis point reduction was at 8%, per CME's FedWatch tool. On Wall Street, all three major indexes gained ground and the S&P 500 (.SPX) , opens new tab managed a record closing high finishing up 17.46 points, or 0.27%, at 6,512.61. The Dow Jones Industrial Average (.DJI) , opens new tab rose 196.39 points, or 0.43%, to 45,711.34. The Nasdaq Composite (.IXIC) , opens new tab also boasted a record closing high for its second day in a row, climbing 80.79 points, or 0.37%, to 21,879.49. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab rose 2.22 points, or 0.23%, to 961.10. Earlier, the pan-European STOXX 600 (.STOXX) , opens new tab index finished up 0.06%. Emerging market stocks (.MSCIEF) , opens new tab rose 12.06 points, or 0.94%, to 1,294.26. Political uncertainty in various countries has rattled currency and bond markets in the past few sessions. French President Emmanuel Macron named loyalist Sebastien Lecornu, as his fifth prime minister in less than two years after opposition parties united to kick out center-right Prime Minister Francois Bayrou over his unpopular plans for budget tightening. Investors were also mulling the resignation of Japan's prime minister, a defeat for Argentinian President Javier Milei's ruling party in local elections, and the abrupt replacement of Indonesia's finance minister. After tumbling more than 13% on Monday, Argentina's main stock index (.MERV) , opens new tab fell 0.3% on Tuesday. DOLLAR HIGHER In currencies, the dollar gained against most currencies except against the yen, recovering from the previous day's losses, as investors consolidated positions ahead of key inflation reports this week. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, rose 0.43% to 97.81, with the euro down 0.49% at $1.1704. Against the Japanese yen , the dollar weakened 0.06% to 147.42. In Treasuries, yields rose as a long-end bond-buying frenzy abated, while the downward revision in jobs data validated a weakening labor market outlook that was already making a case for several rate cuts this year. The benchmark U.S. 10-year note yield rose 3.6 basis points to 4.082% from 4.046% late on Monday. The 30-year bond yield rose 3.6 basis points to 4.7263%. The 2-year note yield, which typically moves in step with interest rate expectations for the Fed, rose 5.5 basis points to 3.55%, from 3.495%. In commodities, oil extended gains and settled higher after the Israeli military said it carried out an attack on Hamas leadership in the Qatari capital Doha. U.S. crude settled up 0.59%, or 37 cents, at $62.63 a barrel, and Brent ended the session at $66.39 per barrel, up 0.56% or 37 cents. Gold continued its record rally on expectations for a U.S. interest rate cut while investors looked ahead to the U.S. inflation data. Spot gold fell 0.12% to $3,631.12 an ounce. U.S. gold futures fell 0.17% to $3,631.90 an ounce. https://www.reuters.com/world/china/global-markets-wrapup-7-graphic-2025-09-09/

2025-09-09 20:43

Sept 9 (Reuters) - U.S. liquefied natural gas producer NextDecade (NEXT.O) , opens new tab said on Tuesday it has reached a positive final investment decision for the fourth liquefaction plant, known as a train, of its Rio Grande export project in Texas. Shares of the company rose nearly 2% in extended trading. Sign up here. The announcement marks the fourth positive FID for an LNG development project in the United States — the world's largest exporter of the superchilled fuel. LNG developers typically reach an FID on projects once they have secured enough supply deals to obtain the necessary financing for construction. NextDecade has been signing multiple LNG deals from the Brownsville, Texas facility, which is under construction and has a potential capacity of about 48 million tonnes per annum, to strengthen its position in the international market. https://www.reuters.com/business/energy/nextdecade-greenlights-train-4-rio-grande-lng-project-2025-09-09/