2025-09-04 20:56

Order cuts US tariffs on Japanese cars to 15% from 27.5% Order reiterates Japan will invest $550 billion in US projects Trump says Japan pledges to buy more rice, other agricultural products WASHINGTON/TOKYO, Sept 4 (Reuters) - U.S. President Donald Trump signed an order on Thursday to implement the lower tariffs on Japanese automobile imports and other products that were announced in July. Formalizing the agreement between the U.S. and a key Asian ally comes after months of negotiations, reduces uncertainty for the massive Japanese auto sector and confirms an agreement for $550 billion of Japanese investment in U.S. projects. Sign up here. The lower tariffs on Japanese autos are set to take effect seven days after publication of the order. Some of the tariff relief is retroactive to August 7. Trump's order also means a reduced U.S. tariff rate on Japanese cars, from the current 27.5% to 15%, is set to take effect by the end of this month, Reuters reported earlier, citing a Japanese government source. Trump's levies on global shipments have hit Japanese carmakers hard. Last month, Toyota (7203.T) , opens new tab said it expected a hit of nearly $10 billion from Trump's tariffs on cars imported into the United States. "Finally," Ryosei Akazawa, Japan's top trade negotiator, posted to X, in a nod to the months-long trade talks that had frustrated lawmakers in Tokyo. Thursday marked his 10th trip to the U.S. for the negotiations. Toyota praised Trump's efforts to reach a trade deal with Japan. "While nearly 80% of the vehicles Toyota sells in the U.S. are made in North America, this framework provides much needed clarity," the company said in a statement. Trump's order says Japan is "working toward an expedited implementation of a 75% increase of United States rice procurements... and purchases of United States agricultural goods, including corn, soybeans, fertilizer, bioethanol (including for sustainable aviation fuel)" and other U.S. products totaling $8 billion per year. As part of the deal, Japan will buy 100 Boeing (BA.N) , opens new tab planes and hike defense spending with U.S. firms to $17 billion annually, from $14 billion, the White House said in July. Japan said in July the share of U.S. rice imports may increase under its existing framework but that the agreement did "not sacrifice" Japanese agriculture. Trump's order Thursday also reiterates the Japanese government has agreed to invest $550 billion in the United States in projects that will be selected by the U.S. government. Two-way trade between the two countries reached nearly $230 billion in 2024, with Japan running a trade surplus of nearly $70 billion. The United States in July agreed to lower tariffs on imports of Japanese automobiles but the timing remains unclear as Trump had yet to sign an executive order. Japan has said the trade deal ensures the U.S.'s fifth-largest trading partner will always receive the lowest tariff rate on chips and pharmaceuticals of all the pacts negotiated by Washington. It also includes no tariffs on commercial airplanes and parts. The executive order is also expected to include provisions that the 15% levy agreed in July would not be stacked on Japanese imports that are subject to higher tariffs, while items previously subject to less than 15% tariffs would be adjusted to 15%, the source said. The investment package, which will come in the form of equity, loans and guarantees from Japan's government-owned banks, was agreed as part of the July trade deal. The European Union secured a 15% baseline tariff as part of a framework trade deal with the U.S. in July, averting looming new tariffs on chips and pharmaceuticals. Last week, the European Commission proposed removing duties on imported U.S. industrial goods in return for reduced U.S. tariffs on European cars, a key part of the trade agreement the EU and the United States. One automaker official told Reuters that as of Thursday, European car imports to the United States are still facing 27.5% tariffs. https://www.reuters.com/business/trump-signs-order-bring-lower-japanese-auto-tariffs-into-effect-2025-09-04/

2025-09-04 20:37

TSX ends up 0.6% at 28,915.89 Eclipses Wednesday's record closing high Tech adds 2.1% as Descartes beats on revenue Financials end 0.7% higher Sept 4 (Reuters) - Canada's main stock index rose to another record high on Thursday, as technology and financial shares notched gains ahead of U.S. and Canadian employment data that guide expectations for interest rate cuts. The S&P/TSX composite index (.GSPTSE) , opens new tab ended up 164.53 points, or 0.6%, at 28,915.89, eclipsing the record closing high it posted on Wednesday. It was the seventh straight day of gains, the longest daily winning streak since May. Sign up here. "The TSX won't quit," said Barry Schwartz, chief investment officer at Baskin Wealth Management. "It's like every day it's hitting a record high and it seems to have the right mix for this kind of market." Financials, energy and materials account for 64% of the TSX's weighting, with the last mentioned up more than 50% since the start of the year as soaring gold prices boosted metal mining shares. U.S. and Canadian employment data are set for release on Friday, with economists forecasting modest job gains that could leave the door open to the BoC and the Federal Reserve resuming their easing campaigns. The Fed has cut interest rates much less than the Bank of Canada in the current cycle. A move to more significant cuts by the U.S. central bank over the coming months could be a catalyst for the next move higher in stocks, Schwartz said. The technology sector (.SPTTTK) , opens new tab rose 2.1%, led by a 7% gain for the shares of Descartes Systems Group Inc (DSG.TO) , opens new tab after the supply chain technology provider beat quarterly revenue estimates. Consumer discretionary was up 1% and financials added 0.7%, while real estate gained 1.1% as long-term borrowing costs fell. The Canadian 10-year yield touched a two-month low at 3.340%. https://www.reuters.com/markets/europe/tsx-ends-higher-seventh-straight-day-tech-shares-climb-2025-09-04/

2025-09-04 20:34

SAO PAULO, Sept 4 (Reuters) - The European Union has recognized Brazil as a bird-flu free country, a move that will allow the resumption of chicken meat exports to the bloc, Brazilian Agriculture Minister Carlos Favaro said on Thursday on social media X. In a subsequent statement, the agriculture ministry explained Favaro held "a high-level meeting" via videoconference with Brazil's Minister of Fisheries and Aquaculture, Andre de Paula, and the EU's Commissioner for Animal Health and Welfare, Oliver Varhelyi. Sign up here. According to the ministry's statement, the European Commissioner was satisfied with information provided by Brazilian authorities related to a bird flu outbreak on a chicken breeder farm in Southern Brazil this year. "Minister Favaro, I have good news: our assessment is that the data provided by your ministry is sufficient to recognize that Brazil is free of avian influenza," Varhelyi was quoted as saying in the statement. "In practice, this means that we will move forward with the Member States to propose the gradual lifting of bans and restrictions on Brazilian exports, progressively reinstating all previously authorized areas," he added. Brazil reported its first ever bird flu outbreak last May, which led to several countries imposing restrictions on its chicken exports until the outbreak was controlled. China is a major chicken importer which has maintained restrictions against Brazilian poultry products after the outbreak while other nations have gradually lifted them. Through June, the European Union had imported 125,300 tons of chicken meat from Brazil, a 20.8% annual rise, generating sales of $386.3 million, according to trade data compiled by Brazil's chicken and pork lobby ABPA. https://www.reuters.com/business/healthcare-pharmaceuticals/eu-recognizes-brazil-bird-flu-free-says-brazils-ag-minister-2025-09-04/

2025-09-04 20:28

Wall Street equities tick up European and Asian stocks mostly rise despite China selloff Bond market calm after rising fiscal health concerns US jobless claims, Fed's dovish comments reinforce rate cut hope Sept 4 (Reuters) - Wall Street and world stocks were mostly higher on Thursday and U.S. Treasury yields fell, as a cooling U.S. labor market and dovish comments from Federal Reserve officials pointed to a likely interest rate cut this month by the central bank. U.S. private payrolls in August increased less than anticipated, while weekly jobless claims came in higher than expected. Sign up here. Traders on Wall Street and in Europe pushed equities up even after Chinese bourses tumbled overnight on reports that Beijing wanted to cool a red-hot stocks rally, especially the tech sector (.STAR50) , opens new tab, (.CSI300) , opens new tab. The Dow Jones Industrial Average (.DJI) , opens new tab, S&P 500 (.SPX) , opens new tab and Nasdaq (.IXIC) , opens new tab all gained between 0.75% and 1%, while the FTSEurofirst 300 (.FTEU3) , opens new tab rose 0.6%. Oil prices fell after a Reuters report that OPEC+ officials are looking at increasing output targets this weekend. The dollar ticked up ahead of Friday's crucial jobs report. /FRX Several Fed officials have bolstered expectations of an imminent U.S. rate cut in recent days. Money markets are now pricing in a near-100% chance that one will be delivered at the Fed's meeting in just under two weeks. European bond buyers nudged down the German 30-year bond yield to 3.3%. France’s was down to 4.39% after hitting 4.523% on Tuesday, its highest since June 2009, on worries that its government could collapse again. "We believe bond investors are focusing on the long-term sustainability of current deficit growth rates," Scott Wren, senior global market strategist at the Wells Fargo Investment Institute, said in a client note on Thursday. "Meanwhile, the U.S. economy is slowing, which puts some downward pressure on yields." SALESFORCE SHARES SLUMP One outlier to the pre-payrolls lull was a nearly 5% slump in Salesforce (CRM.N) , opens new tab shares after third-quarter revenue disappointed Wall Street's analysts due to lagging monetization of AI-powered products. While AI euphoria has driven the main U.S. stock indexes to repeated record highs, momentum has ebbed recently as numbers from Nvidia (NVDA.O) , opens new tab and others failed to wow investors. Overnight, the main action had been in China following a report that regulators were preparing cooling measures for equity markets. Beijing blue chips (.CSI300) , opens new tab fell as much as 2.6%, while the tech-heavy STAR 50 index, which soared nearly 30% last month, dropped more than 6% in its worst day since April. In the U.S., payrolls are not until Friday - keeping investors on edge - but traders watched the nomination hearing of Stephen Miran, U.S. President Donald Trump's pick to replace resigning Fed board member Adriana Kugler. Miran told U.S. senators that no one in the Trump administration has asked him to promise to cut interest rates if he is confirmed as the Fed's newest policymaker. Concerns over Fed independence have done nothing to relieve pressure on major governments' debt prices, so there was relief that an auction of 30-year Japanese bonds had gone smoothly in Tokyo overnight. Australian shares (.AXJO) , opens new tab advanced 1%, recovering from their biggest one-day sell-off since April, while Tokyo's Nikkei 225 (.N225) , opens new tab ended 1.5% higher. India's benchmark Sensex (.BSESN) , opens new tab rose as much as 1% as markets reopened after the government slashed levies on several goods to fire up consumption and counteract U.S. tariffs. Wednesday's Federal Reserve "Beige Book" had painted a mixed picture of the U.S. economy. Analysts at ING called it "bleak" and said it was littered with warnings about the inflationary effect of import tariffs. U.S. Treasury yields fell, with benchmark 10-year notes down 5 basis points to 4.161%, and more rate-sensitive 2-year yield at 3.586%, around the lowest level since the start of May. The dollar edged up 0.26% against the yen to 148.47 , keeping within the trading range where it has stayed since the beginning of August. It was fractionally higher against the euro at $1.165. Brent crude futures dipped another 1% to settle at just under $67 a barrel. Gold edged back 0.25% after hitting a record high of $3,578.5 an ounce on Wednesday. https://www.reuters.com/world/china/global-markets-wrapup-6-2025-09-04/

2025-09-04 20:22

Orsted and Skyborn face $1 billion additional costs due to halt Connecticut and Rhode Island filed joint suit Project delay could extend over a year or risk cancellation Revolution Wind was 80% complete before halt COPENHAGEN/LOS ANGELES, Sept 4 (Reuters) - Danish offshore wind developer Orsted (ORSTED.CO) , opens new tab and the states of Rhode Island and Connecticut sued the Trump administration on Thursday, alleging its decision to block construction of the nearly finished Revolution Wind project is illegal. The separate complaints are the latest twist in a saga that started last month when U.S. officials issued a stop-work order to Revolution Wind, citing unspecified national security concerns. The order forced the suspension of a project that was 80% complete with all offshore foundations in place and 45 out of 65 wind turbines installed. Sign up here. "The stop-work order was issued without statutory authority, lacks any evidentiary basis, and is unlawful," Revolution Wind said in its complaint against U.S. Interior Secretary Doug Burgum and five other federal defendants. The suit was filed in U.S. District Court for the District of Columbia. U.S. President Donald Trump has repeatedly criticized wind energy as ugly, unreliable, and expensive, and his administration is leaning on multiple federal agencies to rein in wind development. Critics say Trump's stance on offshore wind is at odds with his goal to boost energy supplies to power the nation's ambitions around artificial intelligence, which requires a huge amount of data processing. The suit from Rhode Island and Connecticut was filed in federal court in Rhode Island late on Thursday. It asks the court to declare the stop-work order unlawful. "This kind of erratic and reckless governing is blatantly illegal, and we're suing to stop it," Connecticut Attorney General William Tong said in a statement. An Interior Department spokesperson said the agency would not comment on the litigation. Revolution Wind, a 50/50 joint venture between wind developer Orsted and Skyborn Renewables, said it had already spent about $5 billion on the project, and that it will incur costs of another $1 billion if the order remains in place. Orsted and Skyborn warned of potential delays, citing limited availability of specialized vessels required for offshore wind construction. If the vessels depart due to the stoppage, the project would likely be delayed by at least a year, or even be at risk of cancellation, the filing said. The Revolution Wind challenges came as a federal judge in Boston heard arguments in a lawsuit brought in May by 17 Democratic-led states and the District of Columbia seeking to prevent the Trump administration from suspending new wind energy leasing and permitting. U.S. District Judge William Young stressed that it was not his role to second-guess the policy preferences of the president, who "seems to have tied our energy future to fossil fuels." But he questioned whether the agencies that implemented Trump's directive did enough to explain why they adopted the pause, saying the "record here is pretty thin, and that's being pretty generous." The Interior Department's Bureau of Ocean Energy Management also a neighboring project owned by Norwegian energy firm Equinor (EQNR.OL) , opens new tab in April, although the order was later lifted after diplomatic efforts by Norway's government. Revolution Wind was scheduled to be completed next year, and was expected to produce enough electricity to power 350,000 homes in Rhode Island and Connecticut. The timing of the halt to Revolution Wind is particularly damaging for Orsted, which announced last month a plan to raise 60 billion Danish crowns ($9.41 billion) through a rights issue. ($1 = 6.3751 Danish crowns) https://www.reuters.com/legal/litigation/orsteds-revolution-wind-sues-trump-administration-over-project-halt-2025-09-04/

2025-09-04 20:17

HOUSTON, Sept 4 (Reuters) - U.S. oil producer ConocoPhillips (COP.N) , opens new tab will begin company-wide layoffs as early as Nov. 10, the company said in a state notice sent to some employees on Thursday, seen by Reuters. On Wednesday, Reuters reported that ConocoPhillips CEO Ryan Lance informed employees in a video message that the company will cut 20-25% of its workforce as part of a broad restructuring. The company later confirmed the report. Sign up here. On Thursday, the company notified the Texas Workforce Commission that it anticipates the number of reductions in Houston could meet the threshold that mandates reporting to the state, ConocoPhillips spokesperson Dennis Nuss said. ConocoPhillips is offering impacted employees 60 days of advance notice, severance and outplacement assistance, Nuss told Reuters. Employment end dates are anticipated to occur beginning the week of Dec. 1 of 2025, according to a document sent to employees and seen by Reuters. ConocoPhillips has not yet determined which individuals will be let go, the document said, adding that the moves will be permanent. The company has about 13,000 employees globally, meaning between 2,600 and 3,250 employees could be affected. Employees attended a town hall meeting at the Houston office this morning at 9 a.m. Central Time, hosted by CEO Ryan Lance. Shares of the third-largest U.S. oil producer edged up 1% to $95.70, having fallen around 4% on Wednesday. https://www.reuters.com/business/energy/conocophillips-begin-layoffs-early-nov-10-company-says-state-notice-2025-09-04/