2025-09-05 21:02

Sept 5 (Reuters) - A Quebec Superior Court judge has declared the North American branch of battery manufacturer Northvolt insolvent as the provincial government seeks to recover $260 million owed to it, the Canadian Broadcasting Corporation reported on Friday. Justice Janet Michelin placed Northvolt Batteries North America under creditor protection following a request earlier in the week from the province, the report said. Sign up here. Northvolt collapsed with $8 billion in debt in March after losing orders and key investor support, and missing production targets. Canada's industry minister Francois-Philippe Champagne in March said that the government was in talks to help find a buyer for bankrupt Swedish firm Northvolt's battery plant in Quebec. Northvolt laid off its entire staff on Thursday, a day after Economy Minister Christine Frechette said the government would not provide any further funding for its planned electric-vehicle battery plant on Montreal's South Shore, the CBC report said. The Quebec Superior Court decision will allow the company to rehire about 15 employees to maintain the site where the factory was to be built, the report added. Reuters could not immediately verify the report. Northvolt did not immediately respond to a Reuters request for comment. https://www.reuters.com/business/energy/quebec-court-declares-northvolt-insolvent-province-recovers-nearly-200-million-2025-09-05/

2025-09-05 20:59

August nonfarm payrolls below expectations Broadcom up following strong AI revenue growth forecast Indexes: Dow down 0.5%, S&P 500 down 0.3%, Nasdaq down 0.03% NEW YORK, Sept 5 (Reuters) - U.S. stocks ended slightly lower on Friday as investors weighed economic worries against optimism over interest rate cuts by the Federal Reserve after data showed U.S. job growth weakened sharply in August. Bank shares were among those taking the biggest hit, with the S&P 500 bank index (.SPXBK) , opens new tab ending 2.4% lower. Sign up here. However, Broadcom (AVGO.O) , opens new tab shares rose 9.4%, helping to offset market losses, a day after the chipmaker unveiled a $10 billion artificial intelligence chip order from a new customer and forecast fourth-quarter revenue above estimates. The U.S. economy created 22,000 jobs last month instead of an estimated 75,000, confirming softening labor market conditions, according to the Labor Department report. The three major U.S. stock indexes initially rose and broke records following the data, as traders of futures tied to the Fed's policy rate boosted bets that the U.S. central bank will trim rates in quick succession, starting this month, with a 50-basis-point easing now on the table. The major indexes ended well off their lows of the session. "It's going to take more than one bad data set for us to dislodge this market at this point," said Pete Mulmat, CEO of IG North America, parent company of tastytrade, in Chicago. With so much focus on the rate outlook, U.S. stock investors will pay close attention to inflation data in the coming week. The monthly U.S. consumer price index is due on Thursday. The Dow Jones Industrial Average (.DJI) , opens new tab fell 220.43 points, or 0.48%, to 45,400.86, the S&P 500 (.SPX) , opens new tab lost 20.58 points, or 0.32%, to 6,481.50 and the Nasdaq Composite (.IXIC) , opens new tab dropped 7.31 points, or 0.03%, to 21,700.39. For the week, the Dow fell 0.3%, the S&P 500 gained 0.3% and the Nasdaq rose 1.1%. "The payroll report today confirms a softening labor market and justifies a rate cut at the Fed meeting later this month," said Bill Merz, head of capital markets research and portfolio construction at U.S. Bank Asset Management in Minneapolis. "The labor market is going to remain a very important indicator for how this economic picture plays out, but so far consumer spending has really surprised many people despite softening in the labor market." BofA Global Research also adjusted its outlook following the report, forecasting one quarter-point cut each in September and December. The U.S. rate futures market has priced in a 7% chance that the Fed will cut by 50 bps when it meets on September 16-17, and a 93% probability of the more standard 25 bp cut, according to LSEG calculations. The rate-cut expectations helped the real estate sector (.SPLRCR) , opens new tab end 1% higher, and the Philadelphia Housing Index (.HGX) , opens new tab jump 2.1%. Shares of Kenvue (KVUE.N) , opens new tab fell 9.3% after the Wall Street Journal reported, citing people familiar with the matter without including evidence, that U.S. Health Secretary Robert F. Kennedy Jr. plans to announce that use of Kenvue's pain medication Tylenol in pregnant women is potentially linked to autism. Among other decliners, Lululemon Athletica (LULU.O) , opens new tab dropped 18.6% after the yogawear-maker slashed its annual profit forecast the second time in a row. Advancing issues outnumbered decliners by a 1.87-to-1 ratio on the NYSE. There were 508 new highs and 64 new lows on the NYSE. On the Nasdaq, 2,704 stocks rose and 1,899 fell as advancing issues outnumbered decliners by a 1.42-to-1 ratio. Volume on U.S. exchanges was 16.95 billion shares, compared with the 16.05 billion average for the full session over the last 20 trading days. https://www.reuters.com/business/wall-street-indexes-end-lower-jobs-data-fuels-economic-worries-2025-09-05/

2025-09-05 20:57

SAO PAULO, Sept 5 (Reuters) - The United Nations' Food and Agriculture Organization (FAO) has chosen Brazil, which in May reported its first outbreak of bird flu on a chicken breeder farm, to host next week's global event on prevention and control of the disease. Bird flu has spread around the globe and led to hundreds of millions of poultry being culled. It has also been reported in dairy cows, cats, and humans. Sign up here. In an interview on Friday, Jorge Meza, FAO's representitive for Brazil, praised Brazil's robust bio-security protocols, saying the country has "a lot to share" with other nations. Meza said national systems can be strengthened through Brazil's regional leadership, which would involve information sharing, capacity building and transfer of good practices. Mitigating the devastating impacts of the bird flu, which triggered trade bans against Brazil and other poultry producers, requires an integrated response supported by constant investments from both the public and private sectors, according to FAO. "No country or sector can face this crisis alone," the agency said in a statement. Brazil sends chicken to some 150 countries around the world. While some importers relaxed trade restrictions after Brazil controlled the outbreak in June, top buyer China has not resumed buying. So far, Brazil has avoided widespread bird flu among commercial poultry flocks similar to those that recently devastated European and U.S. farms. But there are vulnerabilities, notably at smaller chicken and egg producers in Brazil, who employ alternative modes of production and handle millions of animals. Meza confirmed raising cage-free or free-range chickens carries a greater risk, as flocks could be more exposed to contact with infected wildlife. To reduce risk, mapping out all chicken farms, big and small, is crucial, according to FAO's Andres Gonzalez, an expert in sustainable livestock. "This allows for direct contact with producers, before an emergency, to disseminate best practices. And, if there is an emergency, apply control measures as soon as possible," Gonzalez said. https://www.reuters.com/business/healthcare-pharmaceuticals/brazil-hosts-fao-bird-flu-conference-after-short-lived-outbreak-2025-09-05/

2025-09-05 20:46

WASHINGTON, Sept 5 (Reuters) - The Federal Aviation Administration said on Friday it was extending prohibitions barring U.S. flights to the Haitian capital Port-au-Prince through March 7, citing risks from armed groups to civil aviation. In November, the FAA temporarily halted all flights to Haiti but later allowed U.S. flights to resume to six other airports in northern Haiti after three U.S. commercial jetliners were struck by gunfire. the restrictions had been set to expire next week. Sign up here. U.S. planes can transit over Port-au-Prince above 10,000 feet (3,048 m). The agency last year allowed American carriers and general aviation pilots to resume flights to six airports in Haiti: Port-de-Paix, Cap-Haitien, Pignon, Jeremie, Antoine-Simon and Jacmel. The FAA said on Friday that armed groups continue to control nearly 90% of Port-au-Prince and the immediate surrounding strategic routes and border areas. Since March, there has been at least one instance of likely Haitian groups directing small arms fire at low-flying aircraft. Since last year, groups have used small arms to fire on civilian aircraft, helicopters and airports that damaged multiple aircraft and injured an air crew member. https://www.reuters.com/business/aerospace-defense/us-faa-extends-haiti-capital-flight-restrictions-until-march-2026-2025-09-05/

2025-09-05 20:35

US stocks hit record highs before pulling back US Aug nonfarm payrolls up 22,000 vs forecast of 75,000 gain Some investors now price higher chance of 50 bps rate cut by Fed NEW YORK/PARIS, Sept 5 (Reuters) - U.S. stocks briefly hit record highs on Friday before reversing course to trade lower, after data showing U.S. job growth cooled in August led investors to double down on bets that the Federal Reserve might cut interest rates later this month, maybe by as much as 50 basis points. Speculation that the Fed might lower rates more aggressively caused Treasury yields to nosedive and knocked the U.S. dollar lower, but drove gold to a new record high that approached $3,600 per ounce. Sign up here. Lower interest rates, which could lead to lower borrowing costs for businesses, are generally seen to be a boon to equity markets. Gold, which does not pay interest, also tends to shine when rates are low and uncertainty is high. "This number today puts a 50-basis-point rate cut at the next meeting back on the table," Art Hogan, a strategist at B Riley Wealth Management in Boston, said about the Fed's upcoming policy meeting on September 17. "More significantly, I think 75-basis-point before the end of the year is now pretty much of a lock." U.S. data showed nonfarm payrolls increased by only 22,000 jobs last month after rising by an upwardly revised 79,000 in July, missing forecasts for a gain of 75,000 positions. The S&P 500 Index (.SPX) , opens new tab hit a record high of 6,532.65 points in early trade before pulling back to be down 0.32%. The Dow Jones Industrial Average (.DJI) , opens new tab also hit a record high in the first few minutes of the trading day before retreating 0.5%, while the Nasdaq Composite Index (.IXIC) , opens new tab finished unchanged. In line with expectations of lower rates, the two-year Treasury yield was last down 6.4 basis points at 3.5277%, while the benchmark 10-year yield sagged 8.3 basis points to 4.0934%. Lower Treasury yields weighed on the U.S. dollar, with the dollar index down 0.5% at 97.747 . A softer dollar helped to support the euro, which rose 0.6% at $1.17625 . In Europe, the STOXX 600 (.STOXX) , opens new tab was down 0.2%, the FTSE 100 (.FTSE) , opens new tab was unchanged, and France's CAC 40 (.FCHI) , opens new tab lost 0.3%. Muted equity performance across the board led the MSCI World Equity Index (.MIWD00000PUS) , opens new tab to finish just 0.13% higher. "The warning bell that rang in the labor market a month ago just got louder," Olu Sonola, head of U.S. economic research at Fitch Ratings in New York, said in reference to the U.S. labor market. "A weaker-than-expected jobs report all but seals a 25-basis-point rate cut later this month." Fed Chair Jerome Powell had already reinforced rate cut speculation with an unexpectedly dovish speech at last month's Fed symposium in Jackson Hole. Market sentiment has recovered in recent days after global stocks fell earlier this week and long-dated bond yields in Europe hit their highest in years, as investors became concerned about the state of various countries' finances, particularly Britain and France. Yields eased on Friday, with France's 30-year yield at 4.3873%, down from a peak of 4.523% on Wednesday , and the UK's 30-year yield at 5.553%, after borrowing costs hit their highest level since 1998 earlier in the week. The benchmark 10-year German yield was at 2.7051% . German industrial orders unexpectedly fell in July, data on Friday showed. After months of negotiations, the U.S. signed a deal to impose lower auto tariffs on Japan. The dollar was down 0.7% against the yen, with the pair at 147.5 . Oil prices declined for a third consecutive day, ahead of a meeting of OPEC and allied producers over the weekend. Brent crude futures settled 2.2% lower at $65.50 a barrel, while U.S. crude fell 2.5% to $61.87. The European Union's energy commissioner said the bloc would welcome U.S. President Donald Trump's plan to stop buying Russian oil. Spot gold was up 1.2% at $3,589.01 per ounce, having hit a record $3,597.66 earlier. The metal is now on track for its strongest weekly gain in nearly four months. https://www.reuters.com/world/china/global-markets-wrapup-7-2025-09-05/

2025-09-05 20:22

LUANDA/NEW YORK, Sept 5 (Reuters) - The International Monetary Fund cut Angola's economic growth forecast for 2025 to 2.1% from the previous 2.4% on the back of lower oil exports, the IMF said on Friday, and warned that risks have risen from last year with regard to the Southern African nation's capacity to pay its debts. The IMF said it is critical for Angola to limit its borrowing needs and cut expenses, while greater foreign exchange rate flexibility is also something the country must embrace. Sign up here. The statement follows an IMF board review of the findings of a staff assessment mission to Luanda in May, when the Fund had already cut Angola's growth outlook for this year from an initial 3%. "Angola has been hit by volatility in oil prices and sovereign spreads, and weaknesses in oil production in the first half of 2025, amplifying the impact of those shocks," the IMF said. Like other small, open African economies, oil-exporting Angola has faced challenges this year, when U.S. trade tariffs roiled financial markets. The IMF said Angola's capacity to repay debt remained "adequate" but warned that risks to that view have increased from last year. It cautioned Angola about following two potentially unsustainable financing options: too much domestic debt and costly short-term external debt. "Excessive reliance on domestic financing risks further increasing banks' sovereign exposure," the IMF said, while short-term solutions risk "accumulating onerous debt service, potentially undermining investor confidence, and ultimately delaying market access on more favorable terms." Angola had to pay $200 million in extra security to JPMorgan in April after the price of its bond that serves as collateral for a loan from the Wall Street lender dropped along with other frontier assets. It later got a refund of the cash when the price of that bond rebounded. The visit to Luanda by IMF officials in May was technically a Post Financing Assessment, which is reserved for nations with outstanding credit above their quotas that do not have an IMF-supported program or a staff-monitored program. Angola faces challenges from potentially lower prices of crude oil and tightening external financing conditions, the IMF said after the visit. Its government is also racing to cut the stock of oil-backed loans to China, in an effort to relieve pressure on its finances. https://www.reuters.com/sustainability/sustainable-finance-reporting/imf-cuts-angola-economic-growth-view-again-warns-about-excess-debt-2025-09-05/