2025-09-07 15:57

WASHINGTON, Sept 7 (Reuters) - A top aide to U.S. President Donald Trump who is on his short list to be the next chair of the Federal Reserve said on Sunday that the central bank should be "fully independent of political influence," including from Trump. "I would say 100% that monetary policy, Federal Reserve monetary policy, needs to be fully independent of political influence, including from President Trump," White House National Economic Council Director Kevin Hassett told CBS News' "Face the Nation" show. Sign up here. "The fact is that we've looked at countries that have allowed the leaders to take over the central banks, and what tends to happen is that it's a recipe for inflation and misery for consumers." Trump's repeated demands that the U.S. central bank cut rates immediately and frequent berating of Fed Chair Jerome Powell for his stewardship of monetary policy have fueled questions about the Fed's ability to set interest rate policy without regard to politicians' wishes. So, too, has Trump's bid to fire Federal Reserve Governor Lisa Cook, who has sued to challenge her dismissal. Powell's term as Fed chair is due to end in May 2026. Trump's short list of candidates to succeed him includes Hassett, former Fed Governor Kevin Warsh and current Fed Governor Christopher Waller. "I don't have a plan to overhaul the Fed right now. I'm just happy to do my job," Hassett said. Hassett endorsed U.S. Treasury Secretary Scott Bessent's call on Friday for renewed scrutiny of the Federal Reserve, including its power to set interest rates and said he would be prepared to implement the vision outlined by the Treasury secretary. He declined to provide details. Trump has said that questions about the mortgages on properties Cook owns - and are the subject of a criminal probe by his administration - are sufficient cause for dismissal. Cook has filed a lawsuit seeking to block her unprecedented removal, setting up a legal battle that could upend long-established norms for the Fed's independence. https://www.reuters.com/world/us/white-houses-hassett-says-fed-needs-be-fully-independent-trump-2025-09-07/

2025-09-07 14:38

Output to rise by 137,000 bpd in Oct, less than in Sept/Aug OPEC+ begins a surprise unwinding of 1.65 mln bpd cut Saudi Arabia pushes to regain market share LONDON/MOSCOW/BAGHDAD, Sept 7 (Reuters) - OPEC+ has agreed to further raise oil production from October as its leader Saudi Arabia pushes to regain market share, while slowing the pace of increases compared with previous months due to an anticipated weakening of global demand. OPEC+ has been increasing production since April after years of cuts to support the oil market, but the Sunday decision to further boost output came as a surprise amid a likely looming oil glut in the northern hemisphere winter months. Sign up here. Eight members of OPEC+ agreed on Sunday in an online meeting to raise production from October by 137,000 barrels per day, it said in a statement, much lower than the monthly increases of about 555,000 bpd for September and August and 411,000 bpd in July and June. The Sunday deal also means OPEC+ has begun to unwind a second tranche of cuts of about 1.65 million bpd by eight members more than a year ahead of schedule. The group has already fully unwound the first tranche of 2.5 million bpd since April, equivalent to about 2.4 percent of global demand. "The barrels may be small, but the message is big," said Jorge Leon, analyst at Rystad and a former OPEC official. "The increase is less about volumes and more about signalling – OPEC+ is prioritizing market share even if it risks softer prices." OPEC+, made up of the Organization of the Petroleum Exporting Countries plus Russia and other allies, found it easy to raise production when demand was growing in summer, but the real test will come in the fourth quarter with expected slowing demand, Leon said. OPEC+ said it retained options to accelerate, pause or reverse hikes at future meetings. It scheduled the next meeting of the eight countries for Oct. 5. NEW CAPACITY OPEC's output increases this year also come as Saudi Arabia has sought to punish other members such as Kazakhstan for overproducing, and as the United Arab Emirates has built new capacity and sought higher targets. Earlier this year, U.S. President Donald Trump put pressure on the group to boost output as he sought to fulfil his election promise to bring down domestic gasoline prices. The increases in output have led to a fall in oil prices of around 15% so far this year, pushing oil companies' profits to their lowest since the pandemic and triggering tens of thousands of job cuts. Oil prices have not collapsed, however, trading at around $65 a barrel, supported by Western sanctions on Russia and Iran. That has emboldened OPEC+ to continue increasing output. OPEC+'s hikes have fallen short of the pledged amounts because most members are pumping near capacity. As a result, only Saudi Arabia and the United Arab Emirates are able to add more barrels into the market, analysts have said and data have shown. OPEC+ had two layers of cuts before the Sunday deal - the 1.65 million bpd cut by the eight members, and another 2 million bpd cut by the whole group in place until the end of 2026. https://www.reuters.com/business/energy/opec-agrees-further-oil-output-boost-october-regain-market-share-2025-09-07/

2025-09-07 14:22

LONDON, Sept 7 (Reuters) - London underground workers are to begin a week of rolling strikes on Sunday, action which is set to bring the network to a standstill and cause massive disruption for travellers in the British capital. Passengers are advised to complete their journeys by 6 p.m. on Sunday (1700 GMT) with almost no "Tube" trains expected to run between Monday and Thursday as staff stage a series of staggered walkouts. Sign up here. Additionally the Docklands Light Railway, which connects the financial centres of Canary Wharf and the City of London, will not be running on Tuesday and Thursday. The RMT union said the dispute centred on pay, fatigue management, shift patterns and a reduction in the working week. "They are not after a king's ransom, but fatigue and extreme shift rotations are serious issues impacting on our members health and wellbeing," RMT General Secretary Eddie Dempsey said. Transport for London, which operates the capital's public transport network, said the union would only accept a deal which led to a reduction in the working week, with staff typically working 35 hours. It said it had been working hard to resolve the dispute and had offered staff a 3.4% pay rise. Although TfL said there would be severe disruption, some train services in the capital will be running during the strike. The Elizabeth Line, which operates trains to Heathrow Airport, and the overground rail network will operate as normal, but some stations will see disruption, and TfL said trains were likely to be extremely busy. As well as likely disruption for commuters and tourists, the strikes have prompted British rock band Coldplay to reschedule two concerts at Wembley Stadium this week, while U.S. singer Post Malone also postponed his two shows in London until later in the month. https://www.reuters.com/business/world-at-work/london-underground-workers-set-start-week-strike-action-2025-09-07/

2025-09-07 14:00

MOSCOW, Sept 7 (Reuters) - Russia is fully compliant with its OPEC+ commitments, Russian Deputy Prime Minister Alexander Novak said on Sunday. Eight OPEC+ members agreed to raise oil production by 137,000 bpd in October, the group said in a statement. Sign up here. The oil market is balanced, and the deal is being implemented on a very high level, Novak said, speaking on state TV after the group meeting. "We agreed that we would monitor the market situation. We will have opportunities in the future, also meeting monthly, to make decisions in one or another direction depending on the state of the market", he added. "As far as Russia is concerned, we are fulfilling our obligations in full. Both in terms of compensation and in terms of increasing volumes that were agreed in previous periods." https://www.reuters.com/business/energy/russia-is-fully-compliant-with-opec-commitments-novak-says-2025-09-07/

2025-09-07 11:53

Ukraine's government building attacked first time in war Russia launches drones, missiles on Ukraine Zelenskiy appeals for stronger air defences Trump says he is ready for more sanctions against Russia KYIV, Sept 7 (Reuters) - Russia launched its largest air attack of the war on Ukraine overnight, setting the main government building on fire in central Kyiv and killing at least four people, including an infant, Ukrainian officials said on Sunday. President Volodymyr Zelenskiy said the drone and missile barrage killed four people and caused damage across the north, south and east of the country, including the cities of Zaporizhzhia, Kryvyi Rih and Odesa, as well as in the Sumy and Chernihiv regions. Sign up here. "Such killings now, when real diplomacy could have already begun long ago, are a deliberate crime and a prolongation of the war," Zelenskiy said in a post on X, issuing a fresh appeal to allies to strengthen Ukrainian air defences. Just after sunrise, thick smoke could be seen rising into the clear blue sky from the burning top floor of the main government building, located in the historic Pecherskyi district, Reuters witnesses said. Elsewhere in Kyiv, residential apartments were hit and damaged, with dozens of residents wrapped in blankets gathering on the streets outside to survey the damage to their homes as rescue workers fought to extinguish the flames. The attack underlined growing pessimism in Ukraine and among allies that the war can be ended any time soon, with Russian President Vladimir Putin resisting calls for a ceasefire and emboldened by strengthening relations with China. U.S. President Donald Trump said on Sunday he is ready to move to a second phase of sanctioning Russia, the closest he has come to suggesting he is on the verge of ramping up sanctions against Moscow or its oil buyers over the war in Ukraine. He did not elaborate. Until now, Trump, who met Putin last month, has resisted imposing tougher sanctions on Russia. U.S. Envoy to Ukraine Keith Kellogg said on Sunday that the Russian attack looks like an escalation in the conflict. "The attack was not a signal that Russia wants to diplomatically end this war," Kellogg wrote on X. U.S. Treasury Secretary Scott Bessent said on Sunday that additional economic pressure by the United States and Europe could prompt Putin to enter peace talks with Ukraine. Zelenskiy said he spoke with French President Emmanuel Macron, coordinating diplomatic efforts, next steps and contacts with partners. Kyiv's European allies have condemned the attack and vowed to stand by Ukraine politically and militarily, but concrete offers of assistance, including the possibility of troops on the ground, are still being discussed. WAR'S BIGGEST DRONE BARRAGE Ukrainian Prime Minister Yulia Svyrydenko said it was the first time in the war that the main government building in Kyiv had been hit, a symbolic blow to a well-defended part of the city. Polish Prime Minister Donald Tusk said on X that the Russian attack on Kyiv’s government showed "again that the continued delaying (of) a strong reaction against Putin and the attempts to appease him made no sense". Russia launched 805 drones against Ukraine overnight and 13 missiles, with Ukrainian air defence units downing 751 drones and four missiles, the air force said. That was the highest number of drones Russia has used to attack the country since Moscow launched its full-scale invasion in February 2022. Russia's defence ministry said it had carried out strikes on Ukraine's military-industrial complex and transport infrastructure, according to the TASS news agency. Both sides deny targeting civilians. Timur Tkachenko, head of Kyiv's military administration, said an infant's body was pulled from the rubble in the Darnytskyi district, where a four-storey apartment building was damaged. A young woman was also killed in the attack on the district, which lies to the east of the Dnipro River, he said. The interior ministry said more than 20 people were wounded in the capital. Air alerts lasted for more than 11 hours in Kyiv and the surrounding region. In Kyiv's Sviatoshynskyi district in the west, several floors of a nine-storey residential building were partially destroyed. Falling drone debris set off fires in a 16-storey apartment building and two more nine-storey buildings, officials said. UKRAINE TARGETS RUSSIAN ENERGY Svyrydenko posted a video from inside the damaged government floor, showing a damaged roof, soot-stained ceilings and rescue workers cleaning the rubble. "I urge the world to turn outrage over Russian crimes into concrete support for Ukraine," she said, standing on the damaged floor. Ukraine's defence ministry said that a new meeting of Kyiv's allies was planned for next week and air defences and supplies for Kyiv's deep strikes on Russia would be discussed. Ukraine's military said it attacked the Druzhba oil pipeline in Russia's Bryansk region, inflicting "comprehensive fire damage" during an overnight attack on Sunday. It is part of a strategy to target Russia's vast energy complex, which is the financial backbone of its economy and helps fund the war. Dozens of explosions also shook Ukraine's central city of Kremenchuk, cutting power to some residents and damaging a bridge across the Dnipro River, Mayor Vitalii Maletskyi said on Telegram. Russian strikes on Kryvyi Rih, also in central Ukraine, targeted transport and urban infrastructure, city officials said, but no injuries were reported. In the southern city of Odesa, civilian infrastructure and residential buildings were damaged, with fires breaking out in several apartment blocks, regional governor Oleh Kiper said. Three people were wounded, he said. https://www.reuters.com/world/europe/russia-hits-ukraine-with-biggest-air-attack-war-sets-government-building-ablaze-2025-09-07/

2025-09-07 11:32

Sept 7 (Reuters) - Japanese Prime Minister Shigeru Ishiba said on Sunday he had decided to resign, ushering in a potentially lengthy period of policy paralysis at a shaky moment for the world's fourth-largest economy. Ishiba, 68, instructed his Liberal Democratic Party - which has governed Japan for almost all of the post-war era - to hold an emergency leadership race, adding he would continue his duties until a successor was elected. Sign up here. Here are comments from market analysts. MARCHEL ALEXANDROVICH, ECONOMIST, SALTMARSH ECONOMICS, LONDON: "The focus for the markets will be on what happens to bond yields. But it’s exactly what we are seeing in other parts of the world - uncertainty over fiscal policy and high levels of government debt are a toxic combination. As we continue to see in France, of course." MICHAEL BROWN, SENIOR RESEARCH STRATEGIST, PEPPERSTONE, LONDON: "I don't think we can say that the resignation is a complete surprise as it's been mooted for some time, but the timing of the announcement is certainly unexpected. As for the market reaction, this obviously introduces significant downside risks for the (yen) and for long-end (Japanese government bonds) when trade gets underway... "That selling pressure is likely to come first from the market now needing to price a greater degree of political risk, not only in terms of the LDP leadership contest but also the potential for a general election to be held if the new leader seeks a mandate of their own. "There's also the fiscal angle to consider, with candidates for the leadership all likely to propose looser fiscal stances than Ishiba, hence further pressuring the long end of the curve, where demand for JGBs had already been waning quite significantly. "For the (Bank of Japan), all this political uncertainty is likely to be a further delay to the tightening cycle. Policymakers had already been taking an incredibly cautious approach to rate hikes, an approach which they're now even more likely to maintain as political uncertainty ramps up." RONG REN GOH, PORTFOLIO MANAGER, EASTSPRING INVESTMENTS, SINGAPORE: "Ishiba's resignation was preceded by resignations of other senior members of his party, so it's not wholly unexpected in a way. "In terms of impact on JGBs and the yen, market participants appear more concerned about BOJ falling behind the curve, so are likely to focus on the coming two policy meetings in September and October to set the tone for JGBs and the yen. In my mind, the fiscal uncertainty is a secondary concern." KATSUTOSHI INADOME, SENIOR STRATEGIST, SUMITOMO MITSUI TRUST ASSET MANAGEMENT, TOKYO: "Yields on super-long bond yields will likely rise from Ishiba's resignation. He has strict fiscal discipline. There has been an upward pressure on super-long bond yields due to uncertainties about fiscal conditions, and the pressure will increase." TAKAMASA IKEDA, SENIOR PORTFOLIO MANAGER, GCI ASSET MANAGEMENT, TOKYO: "The market has already priced in his resignation, so the question is who is going to be the next. "If Sanae Takaichi is going to be the successor, that's positive for the stock market as she wants to boost government spending." SAKTIANDI SUPAAT, REGIONAL HEAD OF FX RESEARCH AND STRATEGY, GLOBAL MARKETS, MAYBANK, SINGAPORE: "Ishiba's resignation may trigger a knee-jerk safe-haven bid for the yen and some JGB volatility, but sustained direction in dollar/yen will hinge more on Fed–BoJ policy divergence than domestic politics. "If Ishiba's resignation escalates into broader LDP instability, markets could price in greater political risk premia, amplifying safe-haven flows into the yen and flattening pressure on JGB yields." https://www.reuters.com/business/analyst-views-japan-pm-ishibas-resignation-2025-09-07/