2025-09-05 23:46

Bessent criticizes Fed's 'missteps,' calls for nonpartisan review Interviews for new Fed chair started Friday Trump seeks to remake Fed board Sept 5 (Reuters) - U.S. Treasury Secretary Scott Bessent on Friday called for renewed scrutiny of the Federal Reserve, including its power to set interest rates, as the Trump administration intensifies its efforts to exert control over a central bank whose insulation from short-term political pressures is widely seen as key to effective control of inflation. "There must also be an honest, independent, nonpartisan review of the entire institution, including monetary policy, regulation, communications, staffing and research," Bessent wrote in the Wall Street Journal. Sign up here. Bessent also called for the Fed to leave bank supervision to other governmental authorities and to "scale back the distortions it causes in the economy," including by bond purchases made outside of true crisis conditions. "The Fed must change course," he said in a longer piece published in The International Economy that excoriated the Fed for policies he said helped feed inflation, enriched the rich at the expense of the poor, and exacerbated the housing affordability crisis. Hours after Bessent called for the review, President Donald Trump told reporters that his Treasury chief was among four candidates on his personal shortlist to replace Fed Chair Jerome Powell, whose term expires in May 2026. But Bessent immediately said he was not interested. Trump said he was also considering National Economic Council Director Kevin Hassett, former Fed Governor Kevin Warsh and current Fed Governor Christopher Waller. Bessent himself began interviews on Friday of candidates to replace Powell, a source familiar with the process said. It was not immediately clear who would be interviewed. Characterizing his barrage of criticism as a bid to restore the Fed's independence, Bessent accused the central bank of partisanship and misusing public funds. He said too much had been spent on everything from a renovation of its headquarters to its police force to the staffing of its 12 regional reserve banks, amplifying charges made by Fed critics within and outside of the Trump administration. A Fed spokesperson declined to comment on Bessent's broadside. Fed officials over the years have pushed back against a number of similar accusations. BOARD REPLACEMENTS Trump has been unhappy with Powell since shortly after making him Fed chair in 2018, and all this year has ratcheted up pressure on the Fed to lower rates, as well as moving to install allies in the central bank who will push for cuts. Last week he said he was removing Fed Governor Lisa Cook over allegations of mortgage fraud, which Cook says are unfounded. Cook is suing to stop the firing and remains in her job for now. Trump's nominee to fill an open seat at the Fed, Stephen Miran, said at his nomination hearing this week that he would take unpaid leave from his job as White House economic advisor while he does the Fed job, a situation that Democrats say impugns his ability to make monetary policy decisions independently of the president. Some of Bessent's criticisms echo those of the Fed chair candidates. Warsh, for instance, has long called for "regime change" at the Fed and has argued the Fed's balance sheet is far too large. Waller was one of two Fed governors to dissent against the Fed's decision in July not to cut interest rates. The Fed does look set to kick off a series of reductions this month to shore up an increasingly fragile labor market, though no current policymakers have signaled support for the kind of deep rate cuts that Trump has demanded or the wholesale remaking of the Fed that Bessent is now advocating. "The Fed must reestablish its credibility as an independent institution focused solely on its statutory mandate of maximum employment, stable prices, and moderate long-term interest rates," Bessent said, referring to the three goals Congress sets for the Fed under law. https://www.reuters.com/world/us/us-treasury-secretary-bessent-calls-big-changes-fed-2025-09-05/

2025-09-05 22:39

Sept 5 (Reuters) - Utility DTE Energy (DTE.N) , opens new tab said on Friday its coke battery unit intends to appeal a U.S. court ruling that found it violated the Clean Air Act permitting rules, with a trial on penalties set to begin on September 15. The U.S. Environmental Protection Agency's trial brief includes a request for penalties, according to a filing with the Securities and Exchange Commission. Sign up here. The EPA had accused EES Coke Battery of violating its 2014 Clean Air Act permit by releasing substantially higher sulfur dioxide emissions than allowed and failing to meet reporting requirements set by Michigan's environmental regulator in 2018 and 2019. DTE on Friday expressed uncertainty about the outcome and potential financial impact with regard to the unit's legal battle with the EPA. The company, which was added as a defendant in the lawsuit last year, had earlier said it could not be held liable for Clean Air Act claims against the unit. The EPA's motion for partial summary judgment on liability was granted by the trial court in August. https://www.reuters.com/sustainability/climate-energy/dte-energys-coke-battery-unit-appeal-us-court-ruling-clean-air-act-violations-2025-09-05/

2025-09-05 21:33

WINNIPEG, Manitoba, Sept 5 (Reuters) - The Canadian government on Friday promised hundreds of millions of dollars and less onerous regulations to boost biofuels production, which the country's agriculture minister said faces tough U.S. competition. Prime Minister Mark Carney made support for biofuels and the canola industry one of six areas highlighted in an aid announcement designed to help companies deal with damage from U.S. tariffs and trade disruptions. Sign up here. "We have the U.S. flooding the market with cheaper products, and we've got to do more for our guys here to ensure that they can continue to operate until we get clean fuels regulations amended," Agriculture Minister Heath MacDonald told Reuters. Canadian canola, an ingredient in some biofuels, is also facing high duties and tariffs in China, the largest export market for canola seed. The government pledged C$370 million ($267.79 million) in production incentives for Canadian biofuels producers and also said it would overhaul Canada's biofuels regulations. Canadian biofuels producers and the canola industry have complained for years that the U.S. provides more incentives for biofuels production than those in Canada, discouraging Canadian output. A Canadian government investigation into U.S. biofuels supports concluded in May that U.S. programs do not qualify as "dumping and subsidizing" that have hurt Canadian producers, though. The U.S. Renewable Fuels Association said U.S. and Canadian producers both benefit from supportive biofuel policies and should work together. Canadian producers have also complained that regulations are confusing and an obstacle to investment in the sector. During the April election, Carney pledged to improve the situation. Canada's largest renewable diesel facility, owned by Imperial Oil (IMO.TO) , opens new tab, which will use canola oil as one of its feedstocks, went into production in July. However, another major project was shelved this year over regulatory and trade concerns in Canada and the U.S. Biofuels demand has become a key component in the world price of canola, as production in the U.S. and other countries has expanded in recent years and consumed a greater proportion of world vegetable oil crops. ($1 = 1.3817 Canadian dollars) https://www.reuters.com/sustainability/climate-energy/canada-pledges-money-regulatory-reform-boost-biofuels-2025-09-05/

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/