2025-04-16 06:16

Yen climbs into U.S.-Japan trade talks Swiss franc continues to post gains on dollar Fed's Powell says U.S. growth appears to be slowing NEW YORK, April 16 (Reuters) - The dollar resumed its fall on Wednesday with both safe-havens and risk-sensitive currencies outperforming the greenback as traders waited to see if U.S. President Donald Trump’s administration reaches new trading agreements with partners. The dollar tumbled last week on concerns over the economic impact of new tariffs and as investors shifted allocations overseas due to uncertainty on the erratic implementation of the trade levies. Sign up here. The United States is in discussions with countries including Japan, while tensions between China and the U.S. are intensifying. “We're in a little bit of an information vacuum now with this stalemate between China and the U.S, and we're waiting to see what deals get struck with other countries,” said Brad Bechtel, global head of FX at Jefferies in New York. “There's some big countries that could potentially be announcing deals, which then puts a framework around what the U.S. administration at least is trying to do with tariffs,” Bechtel said. Trump said he will personally attend a meeting of Japanese and U.S. trade officials on Wednesday. South Korean Finance Minister Choi Sang-mok will hold a meeting with U.S. Treasury Secretary Scott Bessent next week to discuss trade issues. Vice President JD Vance said on Tuesday there is a good chance that the United States and Britain will strike a "great agreement" on trade. Any trade agreements with China and the European Union are expected to take longer to reach. Trump on Tuesday ordered a probe into potential new tariffs on all U.S. critical mineral imports in an attempt to pressure industry leader China. Federal Reserve Chair Jerome Powell said on Wednesday that U.S. economic growth appears to be slowing, with consumer spending growing modestly, a rush of imports to avoid tariffs likely to weigh on estimates of gross domestic product, and sentiment souring. "The Fed is waiting to see where things go before they make any type of movement on rates, to see if inflation is going to be temporary or if it's going to be a one-time thing, to see how long these tariffs last and whether or not there's any kind of change to it," said Robert Pavlik, senior portfolio manager at Dakota Wealth. Powell also suggested that hopes the U.S. central bank will step in to tamp down on market volatility are likely misplaced. U.S. data on Wednesday showed U.S. retail sales surged in March as households boosted purchases of motor vehicles ahead of tariffs. The euro was last up 0.84% on the day at $1.1376, holding below a three-year high of $1.1473 reached on Friday. The dollar weakened 0.71% to 142.22 Japanese yen after earlier reaching 142.03, slipping slightly below Friday's low to hit the lowest exchange rate since September 30. Bechtel noted that volumes were declining ahead of the Good Friday holiday, when most U.S. markets will be closed though foreign exchange will remain open. The dollar was last down 1% against the Swiss franc at 0.815 , just slightly above Friday's 10-year low. The franc has appreciated the most among G10 currencies since the April 2 tariff announcement, and the resulting disinflationary effect could push the Swiss National Bank to bring rates back into negative territory. The SNB often intervenes directly in markets to limit the franc's moves, though given Washington's concern over such action, there would be risk of blowback. Market speculation that the SNB may not intervene could make traders feel more confident about buying the franc, said Chris Turner, global head of markets at ING. "I'm sure the SNB would say that their hands aren't tied, but I think investors might be second guessing that," he said. The British pound was last down 0.07% at $1.3221 , after hitting a six-month high of $1.3292 earlier. The Canadian dollar gained 0.5% to C$1.39 per dollar after the Bank of Canada held its key policy rate at 2.75%, its first pause after seven consecutive cuts, and said it would be ready to act decisively if needed to keep inflation under control. The Australian dollar rose 0.35% at $0.6365 and earlier reached $0.6391, the highest since February 24. In cryptocurrencies, bitcoin was flat on the day at $83,989. https://www.reuters.com/markets/currencies/dollar-sellers-take-breather-sterling-stands-tall-2025-04-16/

2025-04-16 06:15

April 16 (Reuters) - Indian dairy firm Heritage Foods (HEFI.NS) , opens new tab will increase the prices of its products this financial year to offset rising costs such as fuel and raw material expenses, its CEO told Reuters. Consumer goods majors, including Nestle India (NEST.NS) , opens new tab and Cinthol soapmaker Godrej Consumer Products (GOCP.NS) , opens new tab, are hiking prices to battle a double whammy of a slowdown in consumer spending and higher costs. Sign up here. "The price increase will be across the board, not specifically on milk," Heritage CEO Srideep Kesavan said last week. "It will also be on paneer and other dairy products ... in line with covering our costs increase." A one-litre pouch of Heritage toned milk is priced at 53 rupees (62 U.S. cents). The company intends to increase the price by 1 to 2 rupees, or 2%-4%, in the financial year that started on April 1. In comparison, the prices of milk and milk products in India rose 2.6%-2.9% in the January-March quarter, still below the broader inflation rate, according to government data. Heritage, which mainly caters to the Southern states, raised milk prices earlier this year, its first increase in nearly two years. It also plans to expand its footprint this year to 350,000 stores from 250,000 currently, including deeper growth in existing markets such as Chennai. PROTEIN DEFICIENCY IN INDIA Dairy brands, from Amul to Milky Mist, have lately been highlighting the amount of protein on packages of everything from cottage cheese to curd as affluent Indians strive to meet daily protein requirements. Surveys indicate a majority of Indians have a protein-deficiency due to a largely vegetarian diet. But Heritage, according to Kesavan, will focus more on maintaining the taste of its products rather than reformulating its products to add more protein. "Taste is more important than loud claims," he said. ($1 = 85.9450 Indian rupees) https://www.reuters.com/world/india/indias-heritage-foods-hike-dairy-prices-counter-costs-2025-04-16/

2025-04-16 06:02

LITTLETON, Colorado, April 16 (Reuters) - Europe's power sector discharged more carbon dioxide during the first quarter of 2025 than in any quarter since the start of 2023 after a drop in clean energy output forced utilities to burn more coal and natural gas for power. Power firms discharged nearly 390 million metric tons of CO2 during the January to March period, which is 23.5 million tons more than during the same months in 2024, according to data from energy think tank Ember. Sign up here. The higher emissions toll during the opening quarter snaps a two-year streak of drops in first-quarter pollution in European power production, and raises the prospect of a reversal in the steadily declining trend in annual regional power emissions. GROWTH DRIVERS The main countries that have fuelled the rise in European power emissions are Germany, the Netherlands, Poland and the United Kingdom, which all lifted pollution from fossil fuel-fired generation to multi-year highs during the first quarter. Year-over-year drops in clean power output in those countries have in turn been the main catalyst behind the rise in fossil fuel use. Total clean power generation across Europe was 5% lower in January to March from the same months in 2024, although the output drops were more severe in Germany (down 19%) and the United Kingdom (down 9%), Ember data shows. Wind power output has been particularly weak so far in 2025, with first-quarter wind generation in Germany down by 30% in January to March from the same months in 2024. The Netherlands, Poland and the United Kingdom also registered wind output declines of around 20% or more over the same period. Lower hydropower generation has also been a factor, with Germany, Poland and the United Kingdom recording drops of 26%, 43% and 18% respectively during January to March from January to March 2024. OFFSETS To compensate for the reduced clean energy supplies in key countries, Europe's power firms have had to increase supplies from fossil fuel plants. Total fossil fuel fired power production in Europe was 7% higher during the first three months of 2025 compared to the same quarter in 2024. Several major European power sectors have raised their fossil fuel generation by more than the regional average, including Germany (up 10%), the Netherlands (up 25%), Poland (up 11%) and the United Kingdom (up 19%). Within Europe as a whole, coal and gas-fired production have both climbed by around 6% so far in 2025 compared to the same months last year. However, at the individual country level, the swings in gas and coal-fired generation have been more pronounced. In Germany, gas-fired electricity output remained largely flat during January to March from the same months in 2024, while coal-fired production climbed by 15%. In the United Kingdom, gas-fired generation climbed by 23% during the first quarter of 2025 from the first quarter of 2024, while coal-fired generation dropped to zero due to the closure of Britain's last remaining coal-fired power plant. The Netherlands and Poland increased output of both coal and gas-fired power during January to March 2025 from January to March 2024. CLEAN SEASON Going forward, higher solar output is expected throughout Europe as the region enters its peak solar radiation period. That should coincide with reduced regional power demand for heating, and may allow utilities to lower generation from fossil fuels over the coming months. But overall power demand is also driven by industrial activity, which has shown patchy growth so far in 2025 but could be hindered going forward by the new tariffs on U.S. goods imports recently imposed by the new Trump administration. If regional manufacturing remains constrained by weak overall consumer demand, then regional power firms may be able to further reduce fossil fuel use and ensure full-year fossil fuel generation contracts again in 2025. But if local manufacturing and industrial activity expands thanks to regional stimulus efforts and increased defense spending, power firms may be forced to elevate fossil fuel use, which could trigger a year-over-year swell in related emissions. The opinions expressed here are those of the author, a market analyst for Reuters. https://www.reuters.com/business/energy/europes-power-firms-lift-emissions-clean-output-falls-maguire-2025-04-16/

2025-04-16 05:28

Trump orders probe into potential tariffs on US critical minerals imports Gold hits record high of $3,317.90 ANZ raises year-end gold price forecast to $3,600 April 16 (Reuters) - Gold prices surpassed the $3,300 mark for the first time on Wednesday, as investors sought safe-haven assets after U.S. President Donald Trump ordered a probe into potential new tariffs on U.S. critical mineral imports. Spot gold was up 2.2% to $3,299.85 an ounce as of 1107 GMT, after hitting a record high of $3,317.90 earlier in the session. U.S. gold futures gained 2.3% to $3,315.80. Sign up here. "Trump's trade war shows no signs of easing... sparking a fresh move towards safe havens and out of stocks," said Ole Hansen, head of commodity strategy at Saxo Bank. Trump's probe, announced on Tuesday, is viewed as an attempt to push back on leading critical minerals producer China, and comes on top of reviews into pharmaceutical and chip imports. Meanwhile, Asian and European shares fell along with U.S. stock futures after the U.S. Commerce Department announced new export licensing requirements for Nvidia's H20 and AMD's MI308 artificial intelligence chips to China. According to a recent BofA survey, 73% of respondents believe that the theme of "U.S. exceptionalism" has peaked, impacting markets, and 49% now view "long gold" as the most crowded trade, overtaking bets on U.S. tech giants for the first time in 24 months. Gold has risen nearly 26% this year, buoyed by tariff disputes, strong central bank buying, expectations of interest rate cuts, and flows into bullion-backed exchange-traded funds. ANZ on Wednesday raised its year-end gold price forecast to $3,600 per ounce and its six-month forecast to $3,500. "The rally has become a bit unhinged, leaving it at risk of corrections. However we have for more than a year now seen corrections to be shallow, with underlying bids waiting on any setbacks," Hansen said. Gold's relative strength index (RSI) stands above 70, indicating that the metal is overbought. However, "the fundamentals here are too strong, and I can't really see another scenario different from the overall risk being tilted to the upside", said Ricardo Evangelista, senior analyst at brokerage firm ActivTrades. Spot silver rose 2% to $32.94 an ounce, platinum was up 0.1% to $960.85, and palladium gained 0.6% to $977.09. https://www.reuters.com/markets/commodities/safe-haven-gold-hits-record-high-weaker-dollar-trade-war-concerns-2025-04-16/

2025-04-16 05:24

BANGKOK, April 16 (Reuters) - Thailand plans to import more liquefied natural gas from the United States over the next five years, Finance Minister Pichai Chunhavajira said on Wednesday, ahead of a planned meeting to discuss tariffs with U.S. officials early next week. There is already an agreement to import 1 million tonnes of LNG worth $500 million next year as part of a 15-year plan starting in 2026 totalling 15 million tonnes, he said. Sign up here. Thailand is planning an additional contract for more than 1 million tonnes of U.S. LNG worth about $600 million over the next five years, Pichai said. Thailand is an LNG importer and wants to be a distributor in the region and so will have to import more, he added. The country also plans to import 400,000 tonnes of U.S. ethane worth $100 million over the next four years, Pichai said. His remarks come ahead of talks between Thai and U.S. officials set for next week. Thailand is among Southeast Asian nations hardest-hit by U.S. President Donald Trump's threatened export levies, with a 36% tariff. Seeking to negotiate a better deal, the government has said it would increase imports of U.S. goods, such as corn, soybean meal, crude, ethane, LNG, autos and electronics, and aircraft. It would also review rules on imports of U.S. pork and consider importing U.S. beef and offal, as well as liquor. The government has also said it will promote more Thai investment in the United States, and crack down on false claims about the origin of products that use Thailand to ship to America. When the 36% tariff was announced earlier this month, Pichai had said it could cut growth in Southeast Asia's second-largest economy by 1 percentage point. Before the tariff was announced, the government was targeting growth of 3% this year, after last year's 2.5% expansion, a rate far adrift of most of its regional peers. https://www.reuters.com/business/energy/thailand-plans-import-more-us-lng-over-next-5-years-says-minister-2025-04-16/

2025-04-16 04:41

A look at the day ahead in European and global markets from Stella Qiu It's been a sea of red in Asia so far on Wednesday, with new U.S. moves turning up the heat in the trade war with China, but at least the losses have been relatively shallow compared with other down days of the past few weeks. Sign up here. Washington issued new export licensing requirements for Nvidia's (NVDA.O) , opens new tab H20 and AMD's (AMD.O) , opens new tab MI308 artificial intelligence chips to China. Nvidia's shares slumped 6% in after-hours trading, after it said the move would cost $5.5 billion. President Donald Trump continues pushing for maximum pressure on Beijing, which was excluded from the shocking reversal of his "reciprocal" tariffs. He has now ordered a probe into potential new tariffs on all U.S. critical minerals imports, which are heavily skewed towards China. One positive is China's GDP data beat, with solid growth of 5.4% in the first quarter, but investors know it predates the U.S. hike in tariffs on China to a staggering 145%. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) , opens new tab fell 1.3%, snapping a four-day winning streak. Hong Kong's Hang Seng index (.HSI) , opens new tab was the worst performer in the region with a drop of 2.3% as tech shares slumped. Wall Street also felt the pain as Nasdaq futures slid 1.3%. The gloom is set to spread to Europe, with EUROSTOXX 50 futures pointing to a 0.7% drop at the open. Trump says the ball is in China's court for a trade deal but Chinese President Xi Jinping for his part seems to be busy touring Southeast Asia. Trump says the two have a great relationship but Xi is showing no signs of backing down. All this uncertainty fuelled the upward momentum in gold, with bullion up 1.3% at yet another record high of $3,275 per ounce. Looking ahead, Britain will report inflation figures for March, with expectations centred on a further easing in the headline measure to 2.7%, from 2.8%. Core inflation likely also slowed a tad to 3.4%, from 3.5%. Tame inflation numbers like those would give the Bank of England room to ease policy further. Markets imply an 80% probability of a cut in May. Investors were less sure about the Bank of Canada policy meeting later in the day, pricing in just a 40% chance of easing as a general election looms at the end of the month. Investors will also focus on U.S. retail sales data and a speech by Federal Reserve Chair Jerome Powell later in the day. Retail sales in March are likely to have surged 1.3%, though largely because consumers rushed to buy before tariffs kick in. For Powell, traders are wondering if he will echo the surprisingly dovish tone set by his colleague Fed Governor Christopher Waller, or stay more balanced. A reprise of Waller would likely encourage markets to wager once more on aggressive rate cuts. Futures currently imply total Fed easing of 88 basis points for this year. Key developments that could influence markets on Wednesday: -- UK CPI for March -- Bank of Canada rate decision -- US retail sales data for March -- Fed Chair Jerome Powell speaks on economic outlook https://www.reuters.com/markets/europe/global-markets-view-europe-2025-04-16/