2025-09-04 11:39
US job openings data reinforces rate cut wagers All eyes on Friday's payrolls report for policy cues Bond market ructions ease but fiscal worries linger SINGAPORE/LONDON, Sept 4 (Reuters) - The U.S. dollar held firm on Thursday in a volatile week as investors contend with a fragile bond market and data showing a weakening labour market, which has reinforced expectations the Federal Reserve will cut rates this month. With the Fed focused on employment, Friday's crucial jobs report will help set expectations for the central bank's next few policy meetings. Data on Wednesday showed job openings fell to a 10-month low in July, although layoffs remained relatively low. Separate surveys on private sector employment and monthly layoffs are due later on Thursday. Sign up here. Traders are pricing in a near-100% chance of the Fed cutting interest rates later this month, up from 89% a week ago, CME FedWatch showed. They are also pricing in 139 basis points of easing by the end of next year. The dollar edged up in relatively steady trade, reflecting investor wariness of making any big moves ahead of Friday's payrolls report. The euro edged down 0.14% to $1.1645, as did sterling, , down 0.1% at $1.344, just above Wednesday's four-week lows. The dollar index , which tracks the U.S. currency against six others, was up slightly at 98.31. The Japanese yen weakened, leaving the dollar up 0.2% at 148.34. Several Federal Reserve officials said labour market worries continue to underpin their view that rate cuts still lie ahead for the central bank, boosting expectations of an imminent rate cut. James Knightley, ING's chief international economist, said the Fed is very likely to cut rates meaningfully in the months ahead with little inflation pressure coming from the jobs market. "We expect them to cut 25 bp at the September, October and December FOMC meetings," he said. The Fed is due to meet on September 16 and 17. BOND WORRIES Much of the focus this week has been on the bond market, where yields on long-end notes across the globe have risen as investors become increasingly anxious about the fiscal health of major economies from Japan to Britain and the United States. "Global bonds recovered some lost ground yesterday providing some temporary relief and helping to stabilise the foreign exchange market," MUFG currency strategist Lee Hardman said. A closely watched auction of 30-year Japanese government bonds passed smoothly on Thursday, calming investors' nerves, while the dovish comments from policymakers triggered a modest rally in Treasuries, pushing yields lower. U.S. 30-year bond yields were down 1.6 basis points on the day at 4.888% , having hit 5% - the highest in about 1-1/2 months - on Wednesday. Uday Patnaik, head of Asia fixed income and global emerging market debt in the asset management division of L&G, said the rise in yields reflects poor fiscal conditions in some of the largest advanced economies, where the debt-to-GDP ratio is heading above 100%. "The problem here is not one of these countries are running a primary surplus, which means revenues cannot even cover non-interest spending," he said. "To fix this will necessitate significant cuts in spending or additional revenues, at a time when social and political pressures are running high." In other currencies, the Australian dollar fell 0.4% to $0.6518, while the New Zealand dollar dipped 0.3% to $0.5859. https://www.reuters.com/world/middle-east/dollar-holds-firm-signs-weaker-us-job-market-fuel-rate-cut-bets-2025-09-04/
2025-09-04 11:37
At least 2,205 dead, over 3,600 injured, Taliban says About 84,000 affected, thousands displaced, says aid agency Some Kunar villages saw 98% of buildings destroyed or damaged Funding cuts, Taliban policies worsen aid situation KABUL/MAZAR DARA, Afghanistan, Sept 4 (Reuters) - Rescue workers on Thursday pulled bodies from the rubble of homes razed in Afghanistan's earthquakes as the confirmed death toll topped 2,200, while homeless survivors faced a bleak future with global aid agencies warning of dwindling resources. Search operations continued in the quake-hit mountainous eastern areas, the Taliban administration said, announcing a new death toll of 2,205 with at least 3,640 people injured. Sign up here. "Everything we had has been destroyed," said Aalem Jan, whose house in the worst-affected province of Kunar was flattened by the tremors. "The only remaining things are these clothes on our backs," said Jan. His family sat under trees with their belongings piled next to them. The first earthquake of magnitude 6, one of Afghanistan's deadliest in recent years, unleashed widespread damage and destruction in the provinces of Kunar and Nangarhar on Sunday, when it struck at a shallow depth of 10 km (6 miles). A second quake of magnitude 5.5 on Tuesday caused panic and interrupted rescue efforts as it sent rocks sliding down mountains and cut off roads to villages in remote areas. More than 6,700 homes have been destroyed, authorities have said. The United Nations has warned the toll could rise with people still trapped under rubble as time runs out for survivors. Humanitarian needs are "vast and growing rapidly", said the International Federation of Red Cross and Red Crescent Societies. "Up to 84,000 people are directly and indirectly affected, with thousands displaced," it added, citing initial figures. In some of the worst-affected villages in Kunar province, two out of three people had been killed or injured, while 98% of buildings were either destroyed or damaged by the tremors, according to an assessment by British-based charity Islamic Relief Worldwide. Survivors desperately searching for family members sifted rubble, carried bodies on woven stretchers and dug graves with pickaxes in the wait for aid to arrive. Video showed trucks, some laden with sacks of flour and others carrying men with shovels, travelling to remote villages on higher slopes. Authorities also airdropped dozens of commando forces at sites where helicopters could not land. Afghanistan is prone to deadly earthquakes, particularly in the Hindu Kush mountain range, where the Indian and Eurasian tectonic plates meet. With homes made mostly of dry masonry, stone and timber, some families preferred to sit out in the open rather than return home as aftershocks continue at regular intervals. The houses gave little protection from the quakes, in ground left unstable by days of heavy rain, said the U.N. Office for the Coordination of Humanitarian Affairs. Resources for rescue and relief work are tight in the South Asian nation of 42 million people pulverised by war, poverty and shrinking aid, where harsh weather presents a further challenge. U.S. President Donald Trump's funding cuts to foreign aid and donor frustration over the Taliban's restrictive policies towards women and its curbs on aid workers have worsened Afghanistan's isolation. The World Health Organisation pointed to a funding gap of $3 million, saying it was critical to keep medicines, trauma kits, and essential commodities flowing amid rising demand. The U.N. World Food Programme has funding and stocks to support the survivors for just four more weeks, its country head, John Aylieff, told Reuters on Wednesday. Jacopo Caridi of the Norwegian Refugee Council, called for donors to go beyond life-saving relief to ensure Afghans a chance at a future beyond perpetual emergency. "The earthquake should serve as a stark reminder: Afghanistan cannot be left to face one crisis after another alone," he said. https://www.reuters.com/business/environment/afghanistan-earthquake-death-toll-tops-2200-survivors-face-aid-crunch-2025-09-04/
2025-09-04 11:33
Hitachi to build massive new facility in Virginia for power transformers Investment aims to meet AI data centers' electricity demand Hitachi's global investment exceeds $9 billion NEW YORK, Sept 4 (Reuters) - Hitachi plans to invest $1 billion to expand its U.S. power grid infrastructure manufacturing, its energy unit said on Thursday, as the country faces record electricity demand from Big Tech's build-out of AI data centers. Hitachi's announcement follows a push by the administration of U.S. President Donald Trump to dramatically increase electricity supply for the rapid expansion of artificial intelligence, which is being developed in energy-intensive data centers around the globe. Sign up here. "If we are going to win the AI race, reindustrialize, and keep the lights on, America is going to need a lot more reliable energy,” U.S. Energy Secretary Chris Wright said in a statement. “Thankfully, Hitachi is delivering." The U.S. holds the biggest concentration in the world of data centers, which are expected to triple their energy use to consume about 12% of the domestic power supply in less than three years. As a result, many utilities are ramping up spending on the long-stagnating electrical grid. Nearly half of Hitachi Energy's latest investment, or $457 million, will go towards building a new facility in South Boston, Virginia, to manufacture large power transformers. The facility will be the biggest U.S. producer of the massive transformers, which can run as large as a two-story home, Hitachi said. Construction of the project is set to begin this year, with service to begin by 2028, the company said. "Bringing production of large power transformers to the U.S. is critical to building a strong domestic supply chain for the U.S. economy and reducing production bottlenecks," said Andreas Schierenbeck, CEO of Hitachi Energy, which is a subsidiary of Japan's Hitachi Ltd (6501.T) , opens new tab. Transformers, which help transport electricity, have been in short supply since the COVID-19 pandemic disrupted global supply chains. Hitachi, which produces other types of electrical equipment in the U.S., including breakers and switchgear, is also investing in its facilities near Pittsburgh, Pennsylvania. The U.S. investments are part of more than $9 billion Hitachi is deploying globally, in part to expand its manufacturing capacity. A Hitachi spokesperson said the company has received a commitment from the White House around expediting the development of new manufacturing production capacity for power components. Without elaborating, the spokesperson also said that Hitachi is working together closely with the White House on various other initiatives. https://www.reuters.com/business/energy/hitachi-invest-1-billion-produce-power-grid-components-us-2025-09-04/
2025-09-04 11:26
OPEC+ to consider raising oil production further, sources say OPEC+ meeting set for Sunday US crude stocks rose last week, sources say LONDON, Sept 4 (Reuters) - Oil prices fell 1.5% on Thursday, adding to their more than 2% decline the previous session, as investors awaited a weekend meeting of OPEC+ at which producers are expected to consider another increase in output targets. Brent crude fell $1, or 1.5%, to $66.59 a barrel by 1104 GMT, while U.S. West Texas Intermediate crude shed $1, or 1.6%, to $62.95 a barrel. Sign up here. Eight members of the Organization of the Petroleum Exporting Countries and allies - known together as OPEC+ - will consider further increases to production in October at a meeting on Sunday, two sources familiar with the discussions told Reuters, as the group seeks to regain market share. A potential OPEC+ production hike would send a strong signal that regaining their market share takes priority over price support, said PVM analyst Tamas Varga. OPEC+ had already agreed to raise output targets by about 2.2 million barrels per day from April to September, in addition to a 300,000 bpd quota increase for the United Arab Emirates. Over the past few months, despite the accelerating production increases, Middle Eastern oil prices have remained the strongest regional prices globally. This has bolstered the confidence of Saudi Arabia and other OPEC members to boost output, according to a Haitong Securities' report. Weighing further on prices were some shaky U.S. macroeconomic data that showed job openings fell to a 10-month low in July, consistent with easing labour market conditions and supporting expectations the Federal Reserve would cut interest rates this month. Markets are also awaiting government data on U.S. crude stockpiles due on Thursday, a day later than usual because of a U.S. holiday on Monday, to gauge the strength of demand in the world's biggest oil consumer. U.S. crude stocks rose by 622,000 barrels in the week ended August 29, market sources said, citing American Petroleum Institute figures on Wednesday. https://www.reuters.com/business/energy/oil-falls-more-than-1-opec-consider-another-output-hike-2025-09-04/
2025-09-04 11:26
BERLIN, Sept 4 (Reuters) - The European Commission is providing a 645 million euro ($755.10 million) grant for a renewable energy cluster near Bornholm in the Baltic Sea, Germany's economy ministry said Thursday, a major step towards the creation of a cross-border offshore hub. Danish transmission system operator Energinet and its German counterpart 50Hertz signed the funding contracts in Berlin, granted under the EU's Connecting Europe Facility (CEF). Sign up here. The Bornholm Energy Island will link a 3 gigawatt (GW)offshore wind farm in the Baltic Sea to both the Danish and German power grids, providing up to 2 GW of electricity to Germany and 1.2 GW to Denmark starting in the 2030s. ($1 = 0.8542 euros) https://www.reuters.com/sustainability/boards-policy-regulation/eu-grants-755-mln-eur-bornholm-offshore-energy-hub-german-economy-ministry-2025-09-04/
2025-09-04 11:25
NEW DELHI, Sept 4 (Reuters) - India's decision to cut taxes on solar and wind equipment will lower costs for new plants and pressure existing project developers to reduce tariffs, accelerating the country's shift to renewable energy, industry experts said. The government on Wednesday slashed the goods and services tax (GST) on solar photovoltaic modules and wind turbine generators to 5% from 12%, part of broader tax cuts on hundreds of consumer items. Sign up here. The tax cut for solar PV modules and wind turbine generators is expected to reduce the capital cost for solar and wind power projects by about 5%, said Girishkumar Kadam, Senior Vice President & Group Head, ICRA Ltd. India, which aims to expand its non-fossil fuel capacity to 500 GW by 2030, currently has about 44 GW of renewable projects awaiting firm power supply agreements. The tax change poses “a few short-term challenges” as projects awarded before the cut may require renegotiation of existing power supply contracts, said Saurabh Agarwal, tax and new energy partner at EY India. Oyster Renewable Energy said the lower tax rate would allow developers to re-engage with utilities at more competitive tariffs, potentially unlocking stuck projects. Developers that have not yet procured equipment will likely need to pass on the tax benefit to consumers through lower tariffs, while those that already paid the higher rate can justify existing tariff agreements by providing documentation to the federal regulator, said Sanjeev Aggarwal, founder and executive chairman of Hexa Climate Solutions. Solar equipment maker Waaree Energies (WAAN.NS) said it would pass on the benefits to customers. https://www.reuters.com/sustainability/boards-policy-regulation/indias-tax-cut-solar-wind-devices-lower-clean-energy-tariff-experts-say-2025-09-04/
