Brazil's central bank stresses need for prolonged restrictive rates despite softer inflation
Economic policy director Diogo Guillen said in a presentation delivered during a closed-door meeting and later published by the central bank that the labor market has provided considerable support to consumption and income, while services inflation remains above the level consistent with meeting the official 3% target.
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- Reuters
Oil ticks down ahead of Trump-Putin summit in Alaska
HOUSTON, Aug 15 (Reuters) - Oil prices eased on Friday as traders awaited talks between U.S. President Donald Trump and Russian leader Vladimir Putin, which could lead to an easing of the sanctions imposed on Moscow over the war in Ukraine. Brent crude futures were down 38 cents, or 0.6%, at $66.45 a barrel 1141 a.m. ET (1541 GMT). U.S. West Texas Intermediate crude futures were 49 cents, or 0.8%, lower at $63.47. At Friday's meeting between Trump and Putin in Alaska, a ceasefire in Ukraine is at the top of the agenda. Trump has said he believes Russia is prepared to end the war, but he has also threatened to impose secondary sanctions on countries that buy Moscow's oil if there is no progress with peace talks. Putin is expected to arrive in Anchorage at 11 a.m. local time (1900 GMT). Kremlin spokesman Dmitry Peskov said Russia expects the talks will bring results, Russia's Interfax news agency reported on Friday. "President Trump will likely threaten further tariff pressure on India and possibly China as far as oil imports from Russia if the meeting stalemates, which is keeping a nervous trade to crude," said Dennis Kissler, senior vice president of trading at BOK Financial. "If a ceasefire announcement is made, it will be taken as a negative to crude near-term," he added. For the week, WTI is set to drop 0.7%, while Brent is on track for a 0.2% gain. Weaker economic data from China, meanwhile, raised concerns over fuel demand. Chinese government data showed factory output growth slumped to an eight-month low and retail sales growth expanded at its slowest pace since December, weighing on sentiment despite stronger oil throughput in the world's second-largest crude user. Throughput at Chinese refineries rose 8.9% year-on-year in July, but that was down from June levels, which were the highest since September 2023. Despite the increase, China's oil product exports last month were also up from a year ago, suggesting lower domestic fuel demand. Forecasts of a growing oil market surplus also weighed on sentiment, as did the prospect of higher-for-longer U.S. interest rates. Bank of America analysts said on Thursday that they were widening their forecast for the oil market surplus, citing growing supplies from the OPEC+ producer group comprising the Organization of the Petroleum Exporting Countries, Russia and other allies. The analysts now project an average surplus of 890,000 barrels per day from July 2025 through June 2026. That forecast follows this week's International Energy Agency predictions saying the oil market looks "bloated" after the latest increases to OPEC+ output.
Reuters
an hour ago
- Reuters
Fed to scrap program devoted to policing banks on crypto, fintech activities
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Reuters
2 hours ago
- Reuters
Chinese state media calls U.S. a 'surveillance empire' over trackers in chip shipments
BEIJING, Aug 15 (Reuters) - The United States' practice of installing location trackers in chip shipments at risk of diversion to China reflects the "instincts of a surveillance empire," China's state-run media outlet Xinhua said in a commentary published on Friday. Reuters reported earlier this week that U.S. authorities had secretly placed location tracking devices in targeted shipments of advanced chips to detect diversions to China, which is under U.S. curbs for advanced chip exports. The Xinhua commentary, titled "America turns chip trade into a surveillance game," cited "reports" that Washington had embedded such trackers, accusing the United States of running "the world's most sprawling intelligence apparatus". The U.S. government has in the past few years tightened restrictions on the exports of advanced chips as well as related technology and equipments to China, as the two superpowers vie for technological dominance. The Chinese commentary follows longstanding accusations from Washington and its Western allies that China could use some exported products, from telecommunications equipment to vehicles, for surveillance, posing potential security risks. In 2022, the Biden administration banned the sale and import of new telecommunications equipment from several Chinese firms, including Huawei, citing national security concerns. In January, it intensified scrutiny by targeting China-made cars and trucks. In its commentary, Xinhua accused the U.S. government of seeing its trading partners as "rivals to be tripped up or taken down," adding that "if U.S. chips are seen as Trojan horses for surveillance, customers will look elsewhere." China's cyberspace watchdog last month said it had asked U.S. chipmaker Nvidia to explain whether its H20 chips had any backdoor security risks - a hidden method of bypassing normal authentication or security controls. Chinese authorities have also cautioned domestic tech firms over their use of H20 chips, Reuters recently reported.
