Economy

Attacks on Saudi Oil Field Knock Out Half of Its Output
2019-09-15 07:21:05 UTC
RIYADH/DUBAI/LONDON (Reuters) - Yemen’s Iran-aligned Houthi group said it attacked two plants at the heart of Saudi Arabia’s oil industry on Saturday, knocking out more than half the Kingdom’s output, in a move expected to send oil prices soaring and increase tensions in the Middle East. The attacks will cut the kingdom’s output by 5.7 million barrels per day (bpd), according to a statement from state-run oil company Saudi Aramco, or more than 5% of global oil supply. The pre-dawn strikes follow earlier cross-border attacks on Saudi oil installations and on oil tankers in Gulf waters, but these were the most brazen yet, temporarily c...
Hurricane Dorian Shows We Are Losing the Fight Against Global Warming
2019-09-01 22:29:33 UTC
As Hurricane Dorian churns its way through the Atlantic, we need to recognize that climate change can make any hurricane more intense and Category 5 hurricanes more likely. Burning fossil fuels such as coal, oil and natural gas, release carbon dioxide and methane into Earth’s atmosphere. These gases trap heat, which means that globally, both air temperatures as well as water temperatures have increased and are continuing to increase. Warmer air leads to more evaporation, which in turn leads to more precipitation. Then the warmer water provides more fuel for the hurricanes. Water has very high heat capacity, which means it’s ...
Recession Fears Escalate
2019-08-14 19:02:04 UTC
NEW YORK (Reuters) - Wall Street stumbled on Wednesday as investors fled equities for safe-haven assets, seeking shelter amid gathering signs that a recession could be on the horizon. All three major U.S. indexes were sharply lower as short- and long-dated Treasury yields inverted for the first time in 12 years, a potential signal of imminent recession. Elsewhere, ominous indicators suggested a faltering global economy, hobbled by the intensifying U.S.-China trade war, Brexit jitters and geopolitical concerns. Germany reported a contraction in second-quarter GDP, and China’s industrial growth in July hit a 17-year low. “Every cent...
US, UK Seek Quick Post-Brexit Trade Deal
2019-08-13 18:20:56 UTC
LONDON (Reuters) - Britain and the United States are discussing a partial trade accord that could take effect on Nov. 1, the day after Britain is due to leave the European Union, a senior Trump administration official said on Tuesday. The official also said visiting U.S. national security adviser John Bolton and British trade minister Liz Truss had discussed the possibility of the two countries’ leaders signing a road map declaration toward a trade deal at this month’s G7 summit meeting in France. The official told reporters that Bolton and British finance minister Sajid Javid had discussed the possibility of a temporary trade agreem...
US will "Enthusiastically Support a No-Deal Brexit"
2019-08-12 19:04:58 UTC
LONDON (Reuters) - The United States would enthusiastically support a no-deal Brexit if that is what the British government decided to do, U.S. national security adviser John Bolton said on Monday during a visit to London aimed at reassuring Britain over UK-U.S. ties. Bolton told British Prime Minister Boris Johnson that President Donald Trump wants to see a successful British exit from the European Union on Oct. 31 and that Washington will be ready to work fast on a U.S.-UK free trade agreement. Johnson wants the EU to renegotiate the terms of Britain’s exit ahead of an Oct. 31 departure date, but the EU says it will not alter the p...
Russia Asks Google to Stop Advertising “Illegal Mass Events”
2019-08-11 16:07:42 UTC
MOSCOW (Reuters) - Russia’s state communications watchdog said on Sunday it had asked Google to stop advertising “illegal mass events” on its YouTube video platform. Tens of thousands of Russians staged what observers called the country’s biggest political protest for eight years on Saturday, defying a crackdown to demand free elections to Moscow’s city legislature. The watchdog, Roscomnadzor, said Russia would consider it interference in its sovereign affairs and a hostile influence should Google fails to respond to the request. Reporting by Andrey Ostroukh; Editing by Janet Lawrence
No-Deal Brexit Would Cause Severe Damage to UK
2019-07-29 03:42:16 UTC
A no-deal Brexit would cause “severe” damage to UK businesses, according to the Confederation of British Industry (CBI). Carolyn Fairbairn, director general of the lobby group, told BBC that quitting the EU without an agreement should be an option “that is not even considered”. Claims that firms are ready for a no-deal scenario are “just not true”, she added. <blockquote><img alt="No-deal_brexit_would_cause_severe_damage_to_uk" src="/system/images/22503/original/No-Deal_Brexit_Would_Cause_Severe_Damage_to_UK.jpg?1564271696" /> Carolyn Fairbairn is director-general of the Confederation of British Industry - CBI - and former non-ex...
Germany's Ursula Von Der Leyen to Lead EU Commission
2019-07-16 23:35:25 UTC
STRASBOURG (Reuters) - Germany’s Ursula von der Leyen secured European parliamentary approval on Tuesday to become the first female European Commission president on a platform of a greener, fairer and rule-based Europe. The German conservative got the thumbs up from socialist and liberal lawmakers which, together with the endorsement by her fellow conservatives, gives her a stronger mandate to tackle issues such as climate change, trade and maintaining democracy in the European Union. Rejection by the EU legislature would have been a painful blow for a bloc beset by challenges ranging from trade to Brexit and erosion of democratic no...
EU, South American Bloc Mercosur Announce World's Largest Free Trade Deal
2019-06-29 01:15:31 UTC
BRUSSELS (Reuters) - The European Union and South American bloc Mercosur agreed a free-trade treaty on Friday, concluding two decades of talks and committing to more open markets in the face of a rising tide of protectionism. The two regions launched negotiations exactly 20 years ago and intensified efforts to reach an accord after Donald Trump’s presidential victory led the Europeans to freeze talks with the United States and seek other global trading allies. As world leaders meet at a G20 summit in Japan, EU Trade Commissioner Cecilia Malmstrom told a news conference the deal sent a “loud and clear message” in support of open trade...
Mexico to Provide 40,000 Jobs to Migrants
2019-06-28 18:19:59 UTC
MEXICO CITY (Reuters) - Mexico is finalizing a deal to provide 40,000 factory jobs to migrants in northern states, President Andres Manuel Lopez Obrador said Friday, addressing a key need for the thousands waiting in Mexico as their U.S. asylum cases are decided. Speaking at his daily press conference, Lopez Obrador said he expected an agreement with factories to be signed next week. “This agreement is going to be signed, there will be no legal problem,” he said. “We are arranging this so that they can be hired without much processing.” Mexico’s border states have been inundated with migrants who must often wait weeks to seek U.S....
Steve Jobs Design Chief to Start Own Firm
2019-06-28 00:58:11 UTC
(Reuters) - Jony Ive, a close creative collaborator with Apple Inc co-founder Steve Jobs whose iPhone and other designs fueled Apple’s rise to become a $1 trillion company, will leave later this year to form an independent design company. Apple said Ive will continue work on its products at his new venture, but shares fell as much as 1.5% to $197.44 in after-market trading, wiping about $9 billion from the firm’s value. Ive spent nearly three decades at Apple, playing a leading role in the design of the candy-colored iMacs that helped Apple re-emerge from near death in the 1990s to the iPhone, regarded by many business experts as one...
Euro Hits Three-Month High Against US Dollar
2019-06-24 04:00:44 UTC
TOKYO (Reuters) - The euro rose to a three-month high against the dollar on Monday, as bearish bets on the U.S. currency remained solid on prospects of a near-term interest rate cut by the Federal Reserve. The euro stretched its rally last week, up 1.4%, and advanced about 0.15% to $1.1386 in early Asian trade, its highest since March 22. The dollar index versus a basket of six major currencies was a shade lower at 96.135, having struck 96.093 on Friday, its lowest since March 21, after the Fed last week opened the door for a potential rate cut as early as next month. That weighed on the dollar and in turn reinvigorated its counte...
US Weekly Jobless Claims Rise; Imported Inflation Weak
2019-06-13 18:19:18 UTC
WASHINGTON (Reuters) - The number of Americans filing applications for unemployment benefits unexpectedly rose last week, which could add to concerns that the labor market was losing steam after job growth slowed sharply in May. Other data on Thursday showed import prices fell by the most in five months in May amid a broad decline in the cost of goods, the latest indication of muted inflation pressures. The import deflation supports expectations that the Federal Reserve will cut interest rates this year. U.S. central bank policymakers are scheduled to meet on June 18-19 against the backdrop of rising trade tensions. Financial markets...
US Ranks Last in the world for Maternity Leave
2019-06-13 18:25:15 UTC
NEW YORK, 13 June 2019 — Sweden, Norway, Iceland, Estonia and Portugal offer the best family-friendly policies among 31 rich countries with available data, according to a new UNICEF repot. Switzerland, Greece, Cyprus, United Kingdom and Ireland rank the lowest. The United States is the only country included in the analysis with no national paid leave policy for mothers or fathers, ranking it the worst for maternity leave. Produced by UNICEF’s Office of Research – The <a href="https://www.unicef.org/press-releases/sweden-norway-iceland-and-estonia-rank-highest-family-friendly-policies-oecd-and-eu">report</a> ranks co...
UK’s Johnson Threatens to Withhold $50 Billion Brexit Payment
2019-06-09 01:46:56 UTC
(Reuters) - Boris Johnson, the leading candidate to succeed Theresa May as Britain’s next prime minister, said he would withhold a previously agreed 39 billion pound ($50 billion) Brexit payment until the European Union gives Britain better exit terms. The EU has repeatedly said it will not reopen discussion of the Brexit transition deal it reached with May last year, which British lawmakers have rejected three times, prompting May to announce her resignation earlier this month. May stepped down as leader of the governing Conservatives on Friday. Johnson, a former foreign secretary in May’s cabinet, is popular with ordinary Conser...
US Economic Growth Continues to Slow
2019-06-07 16:37:19 UTC
NEW YORK (Reuters) - The U.S. economy is growing at a 1.4% annualized rate in the second quarter based on data that showed a weaker-than-forecast payrolls growth in May, the Atlanta Federal Reserve’s GDPNow forecast model showed on Friday. This was a tad slower than the 1.5% pace estimated by Atlanta Fed’s GDP program on Thursday. — US HIRING SLOWS WASHINGTON (AP) — U.S. hiring stumbled in May as employers added just 75,000 jobs, a sign that businesses have become more cautious in the face of weaker global growth and widening trade conflicts. Last month’s modest job gain followed a much healthier increase of 224,000 in Apr...
Toyota Speeds Up Electric Vehicle Schedule
2019-06-07 15:52:16 UTC
TOKYO (Reuters) - Toyota Motor Corp aims to get half of its global sales from electrified vehicles by 2025, five years ahead of schedule, and will tap Chinese battery makers to meet the accelerated global shift to electricity-powered cars. The change illustrates the breakneck growth in the electric vehicle (EV) market, which is transforming the auto industry, and is also an acknowledgment by Japan’s top car maker that it may not be able to meet demand for batteries on its own. Toyota is now faced with a higher-than-expected demand for cars that use batteries, rather than gasoline, Executive Vice President Shigeki Terashi told a brief...
EU to Create a System to Get Around US Block on WTO
2019-06-06 20:49:33 UTC
BERLIN/GENEVA (Reuters) - The European Union is set to propose creating a shadow system to get around a U.S. block on appeals in disputes at the World Trade Organization (WTO), according to a draft proposal circulated to national lawmakers. U.S. President Donald Trump is blocking appointments to the WTO’s Appellate Body, saying its judges have overstepped their mandate and ignored their instructions. Trump’s critics say he resents their power over U.S. law. Unless the block is lifted, the world’s top trade court will have only one of its seven members left by December, leaving it unable to hear appeals in international trade disputes...
US Senators Seek to Block Trump Saudi Arms Sales
2019-06-05 21:52:21 UTC
WASHINGTON (Reuters) - Republican and Democratic U.S. senators said on Wednesday they would introduce legislation to block President Donald Trump’s plan for $8 billion in military sales to Saudi Arabia and the United Arab Emirates without congressional review. Backers said the introduction of the 22 “resolutions of disapproval,” one for each of the 22 arms deals cleared by the Trump administration, was intended to “protect and reaffirm Congress’ role of approving arms sales to foreign governments.” The announcement followed furious rejection in Congress late last month of the administration’s declaration that a growing threat from Ir...
US shared sensitive nuclear power information with Saudi Arabia
2019-06-05 06:08:32 UTC
WASHINGTON (Reuters) - The Trump administration granted two authorizations to U.S. companies to share sensitive nuclear power information with Saudi Arabia shortly after the killing of journalist Jamal Khashoggi in October, a U.S. senator who saw the approvals said on Tuesday. The timing of the approvals is likely to heap pressure on the administration of President Donald Trump from lawmakers who have become increasingly critical of U.S. support for Saudi Arabia since Khashoggi was killed in the Saudi consulate in Istanbul in October. Khashoggi, a native of Saudi Arabia, left in 2017 to became a resident of the United States where he...
Elon Musk Says Tesla deliveries Set to Top Record
2019-05-23 15:41:53 UTC
(Reuters) - Tesla Inc is on course to top its record for quarterly deliveries in the second quarter, beating the 90,700 it sent to customers in the final quarter of last year, according to an email from Chief Executive Officer Elon Musk to staff. Musk’s email, widely posted on social media and authenticated for Reuters by a source familiar with the matter, also said the company had on average produced 900 Model 3 cars per day this week, bringing it closer to a target of 7,000 per week. Demand for the Model 3 sedan and Tesla’s other cars has moved to the top of investors’ list of concerns around the company after it reported slack fir...
British PM Theresa May 'Expected to Quit Friday'
2019-05-23 05:52:23 UTC
LONDON (Reuters) - British Prime Minister Theresa May is expected on Friday to announce her departure from office, The Times reported, without citing a source. May will remain as prime minister while her successor is elected in a two-stage process under which two final candidates face a ballot of 125,000 Conservative Party members, the newspaper said. <hr>Reporting by Guy Faulconbridge<hr>
Asia Shares Hit 4-Month Low on Risk of Endless Trade War
2019-05-23 05:34:55 UTC
SYDNEY (Reuters) - Asian shares broke support and caved to a four-month low on Thursday, as concerns grew that the Sino-U.S. trade conflict was fast morphing into a prolonged technology cold war between the world’s two largest economies. Late Wednesday, Reuters reported the U.S. administration was considering Huawei-like sanctions on Chinese video surveillance firm Hikvision over the country’s treatment of its Uighur Muslim minority, according to a person briefed on the matter. After the United States placed Huawei Technologies on a trade blacklist last week, British chip designer ARM has halted relations with Huawei in order to comp...
Trump Says Some Auto Imports Threaten National Security
2019-05-17 20:40:13 UTC
WASHINGTON (Reuters) - US President Donald Trump declared that some imported vehicles and parts pose a national security threat but delayed a decision for as long as six months on whether to impose tariffs to allow for more time for trade talks with the European Union and Japan. The unprecedented designation of foreign vehicles imported to the United States from some of its closest allies sparked anger from automakers, dealers and foreign governments after a White House document hinted it would seek voluntary export quotas on autos from U.S. trading partners. European Trade Commissioner Cecilia Malmstroem said on Twitter that “we com...
US Federal Appeals Court: Trump Administration Violated Federal Law
2019-05-17 20:13:17 UTC
RICHMOND, Va. (AP) — A federal appeals court ruled Friday the Trump administration acted in an “arbitrary and capricious” manner when it sought to end an Obama-era program that shields young immigrants from deportation. A three-judge panel of the 4th U.S. Circuit Court of Appeals ruled 2 to 1 that the Trump administration violated federal law when it tried to end the Deferred Action for Childhood Arrivals program without adequately explaining why. The ruling overturns a lower court ruling a judge in Maryland made last year, which Trump had previously praised via Twitter. Friday’s ruling will not have any immediate effect as other fed...