By Saqib Iqbal Ahmed

NEW YORK -Speculators’ net long bets on the U.S. dollar rose in the latest week, while net bearish bets on the euro grew to their largest level since November, according to calculations by Reuters and U.S. Commodity Futures Trading Commission data released on Friday.

The value of the net long dollar position was $15.59 billion for the week ended July 5. Last week, speculators’ net long position stood at $13.65 billion.

U.S. dollar positioning was derived from net contracts of International Monetary Market speculators in the Japanese yen, euro, British pound, Swiss franc, and Canadian and Australian dollars.

The U.S. dollar has risen about 12% against a basket of currencies this year, helped by a hawkish Federal Reserve and heightened geopolitical tensions that have boosted the greenback’s safe-haven appeal.

On Friday, the dollar was little changed against a basket of currencies following a choppy session, after data showed the U.S. economy created more jobs than expected in June.

Speculators’ net short position on the euro rose to 16,852 contracts in the latest week, up from a net short position of 10,596 contracts. That was the most bearish positioning on the euro since November 2021.

The euro slipped to a fresh two-decade low against the greenback on Friday amid worries over the euro zone economy tipping into recession.

JAPANESE YEN (Contracts of 12,500,000 yen)

$5.009 billion

05 Jul 2022 Prior week

week

Long 38,660 36,462

Short 93,105 89,032

Net -54,445 -52,570

EURO (Contracts of 125,000 euros)

$2.163 billion

05 Jul 2022 Prior week

week

Long 197,138 189,414

Short 213,990 200,010

Net -16,852 -10,596

POUND STERLING (Contracts of 62,500 pounds sterling)

$4.2 billion

05 Jul 2022 Prior week

week

Long 39,618 35,184

Short 95,826 88,302

Net -56,208 -53,118

SWISS FRANC (Contracts of 125,000 Swiss francs)

$1.308 billion

05 Jul 2022 Prior week

week

Long 3,218 4,523

Short 13,353 13,114

Net -10,135 -8,591

CANADIAN DOLLAR (Contracts of 100,000 Canadian dollars)

$-0.329 billion

05 Jul 2022 Prior week

week

Long 45,365 45,893

Short 41,072 36,796

Net 4,293 9,097

AUSTRALIAN DOLLAR (Contracts of 100,000 Aussie dollars)

$3.239 billion

05 Jul 2022 Prior week

week

Long 27,622 28,887

Short 75,243 71,867

Net -47,621 -42,980

MEXICAN PESO (Contracts of 500,000 pesos)

$0.351 billion

05 Jul 2022 Prior week

week

Long 107,141 107,031

Short 121,559 121,011

Net -14,418 -13,980

NEW ZEALAND DOLLAR (Contracts of 100,000 New Zealand dollars)

$0.435 billion

05 Jul 2022 Prior week

week

Long 13,634 11,720

Short 20,690 17,031

Net -7,056 -5,311

(Reporting by Saqib Iqbal Ahmed in New YorkEditing by Leslie Adler and Matthew Lewis)

By David Shepardson

WASHINGTON -The U.S. Transportation Department on Friday https://www.transportation.gov/individuals/aviation-consumer-protection/family-seating/June-2022-notice warned airlines it may issue regulations prohibiting them from charging extra fees to allow young children to sit next to accompanying family members.

The agency, citing a 2016 law that required it to review U.S. airline family seating policies, issued a notice urging airlines to ensure children age 13 or younger are seated next to an accompanying adult with no additional charge to the maximum extent practicable, and said it could take regulatory action later this year after it reviews airline policies.

The Transportation Department said it has received few complaints about the issue but said “even one incident is one too many.”

It added that airlines should implement policies enabling workers “to make immediate adjustments as needed to ensure young children are able to be seated adjacent to accompanying adults” but are not required to provide seats that would result in an upgrade.

The agency said airlines using seat blocking should monitor its ability to ensure adequate numbers of seats are blocked to meet demand for adjacent seats for passengers traveling with young children.

Last month, the department noted that U.S. consumers lodged more than quadruple the number of complaints against U.S. airlines in April compared with pre-pandemic levels.

Travelers are facing a difficult summer as airlines face near-record demand and as they rebuild staff levels after thousands of workers left the industry during the COVID-19 pandemic. Air passengers are facing long lines, crowded airports and few open seats.

Airlines for America, a group representing Delta Air Lines, United Airlines, American Airlines and others, said, “U.S. airlines have always worked to accommodate customers who are traveling together, especially those traveling with children, and will continue to do so. Each carrier sets their own policies that fit individual business models.”

The Transportation Department plans to propose formal rules https://www.reginfo.gov/public/do/eAgendaViewRule?pubId=202204&RIN=2105-AF04 by August codifying requirements airlines provide prompt refunds when carriers cancel or make a significant change, including when tickets purchased are non-refundable.

It also plans to issue rules requiring detailed fee disclosure for baggage, cancellation and family seating costs at time of purchase and to issue final rules requiring passenger airlines to refund fees for bags that are significantly delayed and refunds for services like onboard Wi-Fi that do not work.

(Reporting by David Shepardson; Editing by Jonathan Oatis)

(Reuters) – Global companies that make baby formula are bringing products into the United States after the country’s health regulator relaxed its import policy to address a nationwide shortage partly triggered by Abbott Laboratories’ manufacturing plant in Michigan recalling some products in February.

Importers include Neocate maker Danone SA, while New Zealand’s dairy giants Fonterra and a2 Milk have submitted applications to the U.S. Food and Drug Administration (FDA) for supplying baby formula to the United States.

Once the products arrive in the country and receive a sign-off from the FDA, the manufacturers will distribute them through their existing supply chains and cater to unfulfilled orders, a spokesperson for the U.S. Department of Health and Human Services said.

While Abbott reopened its plant in Michigan on June 4, severe thunderstorms and rain caused it to stop production of its EleCare specialty baby formula almost two weeks later.

Here’s a list of companies that are bringing in baby formula to the U.S. market in the wake of the crisis:

Date of Manufacturer Major imports

announcement

May 27 Bubs Australia Ltd Plans to ship at least 1.25 million

cans of several varieties of its

formula

June 30 Danone SA U.S. FDA says 555,000 cans of

Aptamil Gold Plus from New Zealand

will likely be available in August

(https://bit.ly/3abWTTE)

June 17 Danone SA U.S. FDA says about 750,000 cans of

Aptamil First Infant Milk Stage 1

formula are expected to be shipped

to the U.S. in July (https://bit.ly/3tJFsAC)

May 26 Danone SA Has doubled shipments of its

formula, with about 500,000

additional cans to be sent to the

U.S.

June 3 Nestle SA U.S. FDA says about 1.3 million cans

of Nestle’s Gerber Good Start Gentle

from Mexico to be available from the

beginning of July through October.

June 2 Nestle SA U.S. FDA says 249,500 cans from

Germany of Nestle’s NAN Supreme Pro

1 and NAN Supreme Pro 2 baby formula

to be available in June and July(https://bit.ly/3m8DqFS)

May 25 Nestle SA 114 pallets of Gerber Good Start

Extensive HA formula delivered in

Virginia

May 22 Nestle SA Has been flying supplies from the

Netherlands and Switzerland and

delivered 132 pallets of its Health

Science Alfamino and Alfamino Jr

infant formulas

May 24 Kendal Nutricare About 2 million cans of infant

formula expected to reach U.S. store

shelves from the UK, beginning June,

with 40,000 cans in stock for

immediate dispatch

June 15 Reckitt Benckiser U.S. FDA says 4.5 million pounds of

base powder for Reckitt subsidiary

Mead Johnson’s general infant

formula Enfamil Stage 1 will begin

shipping in June through November (https://bit.ly/3tH4aBx)

June 22 Global Kosher U.S. FDA says more than 4.8 million

cans of Kendamil First Infant

Formula with Iron (Kosher formula)

will be available from the UK (https://bit.ly/3HWZBJt)

June 27 Bellamy’s Organic U.S. FDA says 696,000 cans from

Australia will be available from

early July and over next several

months (https://bit.ly/3niqrC7)

June 28 Abbott Nutrition U.S. FDA says 18,677 cans of Similac

Advance 2’-FL Stage 1 infant formula

from Ireland will be available from

mid-July (https://bit.ly/39WjyDF)

July 6 Vitaflo USA LLC U.S. FDA says 3,192 cans of PKU

Start, a specialty/metabolic formula

for infants with phenylketonuria

(PKU), from the Netherlands will be

made available within two weeks (https://bit.ly/3yopy08)

July 8 Care A2+ U.S. FDA says 4.875 million cans of

Care A2+ 0-12 Months infant formula

from Australia will be shipped in

the first week of August (https://bit.ly/3AxbAM1)

(Reporting by Deborah Sophia and Ananya Mariam Rajesh in Bengaluru; Additional reporting by Leah Douglas in Washington and Leroy Leo in Bengaluru; Editing by Anil D’Silva, Maju Samuel and Sriraj Kalluvila)

By Steve Scherer and Ismail Shakil

OTTAWA -Canada sees the potential for some movement toward settling a longstanding dispute with the United States over softwood lumber tariffs as the cost of building materials spikes south of the border, adding to four-decade high inflation.

“Given what we are facing around inflationary concerns… this is an issue that we could actually find some movement on,” Canada’s International Trade Minister Mary Ng said in a telephone interview on Friday.

Ng was due to meet with U.S. Trade Representative Katherine Tai later in the day. The two ministers along with Mexican Deputy Economy Minister Luz Maria de la Mora met on Friday in Vancouver, marking the two-year anniversary of the new North American trade pact.

“The argument I also make to the U.S. is that the rising housing costs are a concern,” Ng said. “Lowering those tariffs can actually be a part of the solution.”

U.S. inflation accelerated in May at its fastest pace in more than 40 years.

With prices surging for lumber and other building materials, U.S. homebuilders have clamored for President Joe Biden’s administration to remove the anti-subsidy and anti-dumping duties in place on Canadian softwood lumber, ranging from 6.75% to 20.24%, depending on the producer.

The softwood lumber tariffs are the legacy of a decades-long trade dispute over the structure of Canada’s timber sector that could not be resolved when a quota agreement expired in 2015.

Last month U.S. Treasury Secretary Janet Yellen said that Biden was not considering cutting tariffs on Canadian lumber as part of potential tariff relief he is considering to fight inflation.

“Our priority has always been ensuring that U.S. softwood lumber producers can compete on a level playing field,” Tai told reporters at a news conference in Vancouver. “Subsidized lumber and dumped imports undermine their ability to compete fairly. This is not a new issue.”

The United States has said that Canadian timber harvested from federal and provincial lands enjoys an unfair subsidy due to low government-set stumpage fees, while most U.S. timber is harvested from private land at market rates.

(Reporting by Ismail Shakil and Steve Scherer in Ottawa, additional reporting by David Lawder in Washington; Editing by David Gregorio)

By Gertrude Chavez-Dreyfuss

NEW YORK -The U.S. dollar was little changed against a basket of currencies on Friday ahead of the weekend following a choppy session that saw the greenback posting both gains and losses after data showed the world’s largest economy created more jobs than expected in June.

The report cemented expectations of another 75 basis-point hike at the Federal Reserve’s policy meeting later this month.

U.S. nonfarm payrolls increased by 372,000 jobs last month, the Labor department reported on Friday. Economists polled by Reuters had forecast 268,000 jobs added last month.

Earlier in the session, the greenback hit a fresh two-decade high against a basket of currencies, led by gains against the euro amid signs the euro zone economy will tip into recession. The dollar has hit consecutive 20-year peaks this week, gaining in five of the last six weeks.

In afternoon trading, the dollar index was last flat at 106.96.

Fed funds futures priced in a more than 90% chance of a 75-bps rate hike this month, with about 187 bps of cumulative tightening by the end of the year. That was up from 181 bps late Thursday.

“Solid U.S. data, in particular today’s stronger-than-expected payrolls, and continued hawkish rhetoric from FOMC (Federal Open Market Committee) officials reinforced the growing divergence between the increasingly bleak outlook in Europe and the more resilient U.S economy,” wrote Jonas Goltermann, senior markets economist, at Capital Economics.

That said, some economists pointed out that a deeper look at the jobs report showed that it was not as strong the headline suggested.

Bernard Baumohl, chief global economist, at The Economic Outlook Group, said in a report, that the data reveals “an economy that is already transitioning toward slower growth.”

He said he sees fresh signs that employers turned more cautious in June, hiring 30% fewer workers in the second quarter than in the first three months of the year and down more than 10% from the same spring quarter a year ago.

“And if you look at the three-month moving total in payrolls, the period ending in June was the slowest since February 2021. Will the Fed take notice?”

With jobs out of the way, investors are now focused on Wednesday’s inflation report.

Economists are forecasting that the year-on-year consumer price index will hit a fresh 40-year high of 8.8% in June, according to a Reuters poll. The monthly core index is seen slipping, however, to 5.8% from 6.0% in May.

The euro was also on investors’ radars. The currency was down around 3% against the dollar this week as investors worry about the economic impact of an energy crisis brought on by the uncertainty of gas supply from Russia. The euro was last up 0.1% at $1.0176.

Against the yen, the dollar gained 0.1% to 136.07 yen.

Safe-haven demand briefly lifted the yen on Friday after former Japanese Prime Minister Shinzo Abe was shot while campaigning for a parliamentary election. Abe, Japan’s longest-serving leader, died later on Friday..

========================================================

Currency bid prices at 3:40PM (1940 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

Dollar index 106.9600 106.9900 -0.01% 11.809% +107.7900 +106.8000

Euro/Dollar $1.0175 $1.0161 +0.15% -10.49% +$1.0192 +$1.0072

Dollar/Yen 136.0650 136.0000 +0.04% +18.19% +136.5600 +135.3300

Euro/Yen 138.46 138.14 +0.23% +6.25% +138.6900 +136.8700

Dollar/Swiss 0.9769 0.9741 +0.30% +7.10% +0.9797 +0.9726

Sterling/Dollar $1.2023 $1.2027 +0.03% -11.05% +$1.2055 +$1.1920

Dollar/Canadian 1.2959 1.2967 -0.05% +2.51% +1.3035 +1.2937

Aussie/Dollar $0.6848 $0.6840 +0.18% -5.74% +$0.6874 +$0.6792

Euro/Swiss 0.9938 0.9895 +0.43% -4.16% +0.9954 +0.9867

Euro/Sterling 0.8460 0.8449 +0.13% +0.71% +0.8475 +0.8442

NZ $0.6182 $0.6176 +0.08% -9.70% +$0.6207 +$0.6133

Dollar/Dollar

Dollar/Norway 10.0765 10.0830 +0.16% +14.64% +10.1805 +10.0805

Euro/Norway 10.2696 10.2437 +0.25% +2.56% +10.3437 +10.2305

Dollar/Sweden 10.5158 10.5191 +0.01% +16.62% +10.6219 +10.4854

Euro/Sweden 10.7020 10.7005 +0.01% +4.57% +10.7209 +10.6604

(Reporting by Gertrude Chavez-Dreyfuss in New York; Editing by Jonathan Oatis)

By Gertrude Chavez-Dreyfuss

NEW YORK -The U.S. dollar was little changed against a basket of currencies on Friday ahead of the weekend following a choppy session that saw the greenback posting both gains and losses after data showed the world’s largest economy created more jobs than expected in June.

The report cemented expectations of another 75 basis-point hike at the Federal Reserve’s policy meeting later this month.

U.S. nonfarm payrolls increased by 372,000 jobs last month, the Labor department reported on Friday. Economists polled by Reuters had forecast 268,000 jobs added last month.

Earlier in the session, the greenback hit a fresh two-decade high against a basket of currencies, led by gains against the euro amid signs the euro zone economy will tip into recession. The dollar has hit consecutive 20-year peaks this week, gaining in five of the last six weeks.

In afternoon trading, the dollar index was last flat at 106.96.

Fed funds futures priced in a more than 90% chance of a 75-bps rate hike this month, with about 187 bps of cumulative tightening by the end of the year. That was up from 181 bps late Thursday.

“Solid U.S. data, in particular today’s stronger-than-expected payrolls, and continued hawkish rhetoric from FOMC (Federal Open Market Committee) officials reinforced the growing divergence between the increasingly bleak outlook in Europe and the more resilient U.S economy,” wrote Jonas Goltermann, senior markets economist, at Capital Economics.

That said, some economists pointed out that a deeper look at the jobs report showed that it was not as strong the headline suggested.

Bernard Baumohl, chief global economist, at The Economic Outlook Group, said in a report, that the data reveals “an economy that is already transitioning toward slower growth.”

He said he sees fresh signs that employers turned more cautious in June, hiring 30% fewer workers in the second quarter than in the first three months of the year and down more than 10% from the same spring quarter a year ago.

“And if you look at the three-month moving total in payrolls, the period ending in June was the slowest since February 2021. Will the Fed take notice?”

With jobs out of the way, investors are now focused on Wednesday’s inflation report.

Economists are forecasting that the year-on-year consumer price index will hit a fresh 40-year high of 8.8% in June, according to a Reuters poll. The monthly core index is seen slipping, however, to 5.8% from 6.0% in May.

The euro was also on investors’ radars. The currency was down around 3% against the dollar this week as investors worry about the economic impact of an energy crisis brought on by the uncertainty of gas supply from Russia. The euro was last up 0.1% at $1.0176.

Against the yen, the dollar gained 0.1% to 136.07 yen.

Safe-haven demand briefly lifted the yen on Friday after former Japanese Prime Minister Shinzo Abe was shot while campaigning for a parliamentary election. Abe, Japan’s longest-serving leader, died later on Friday..

========================================================

Currency bid prices at 3:40PM (1940 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

Dollar index 106.9600 106.9900 -0.01% 11.809% +107.7900 +106.8000

Euro/Dollar $1.0175 $1.0161 +0.15% -10.49% +$1.0192 +$1.0072

Dollar/Yen 136.0650 136.0000 +0.04% +18.19% +136.5600 +135.3300

Euro/Yen 138.46 138.14 +0.23% +6.25% +138.6900 +136.8700

Dollar/Swiss 0.9769 0.9741 +0.30% +7.10% +0.9797 +0.9726

Sterling/Dollar $1.2023 $1.2027 +0.03% -11.05% +$1.2055 +$1.1920

Dollar/Canadian 1.2959 1.2967 -0.05% +2.51% +1.3035 +1.2937

Aussie/Dollar $0.6848 $0.6840 +0.18% -5.74% +$0.6874 +$0.6792

Euro/Swiss 0.9938 0.9895 +0.43% -4.16% +0.9954 +0.9867

Euro/Sterling 0.8460 0.8449 +0.13% +0.71% +0.8475 +0.8442

NZ $0.6182 $0.6176 +0.08% -9.70% +$0.6207 +$0.6133

Dollar/Dollar

Dollar/Norway 10.0765 10.0830 +0.16% +14.64% +10.1805 +10.0805

Euro/Norway 10.2696 10.2437 +0.25% +2.56% +10.3437 +10.2305

Dollar/Sweden 10.5158 10.5191 +0.01% +16.62% +10.6219 +10.4854

Euro/Sweden 10.7020 10.7005 +0.01% +4.57% +10.7209 +10.6604

(Reporting by Gertrude Chavez-Dreyfuss in New York; Editing by Jonathan Oatis)

By Lewis Krauskopf

NEW YORK – A better-than-expected U.S. jobs report eased some worries about an imminent recession but also bolstered the case for the Federal Reserve to continue aggressively hiking rates, threatening more turbulence for asset prices this year.

Hopes that a weakening economy could push the Fed to slow or stop its rate hikes earlier than previously expected have bolstered stocks and bonds in recent days. The S&P 500 rebounded 6% from its June lows while the 10-year U.S. Treasury yield, which moves inversely to prices, hit a low of 2.75% this week.

That view took a hit on Friday, as traders bet on bigger Fed rate hikes after the report, which showed U.S. employers hiring far more workers than expected in June. Rate futures contracts now reflect a base-case view that the Fed’s policy rate will be in the 3.5%-3.75% range by year end, higher than Fed policymakers themselves predicted three weeks ago.

To some investors, that means the volatility that has rocked markets in the first half of the year should continue as uncertainty over how restrictive Fed policy will need to be threatens risk appetite across Wall Street.

“We don’t know if inflation peaked, we don’t know if Fed hawkishness has peaked,” said Phil Orlando, chief equity market strategist at Federated Hermes. “The combination of uncertainty about inflation, Fed policy and earnings trends suggest that stocks should go lower.”

Immediate reaction to the report was muted in stocks, with the S&P 500 recently down 0.1%. Treasury yields shot higher, with the 10-year recently at nearly 3.1%.

Investors now turn to the monthly U.S. consumer price index report for a gauge on inflation, due next week, as well as to the start of a second-quarter earnings season that investors fear will come in weaker than forecast.

Stocks and bonds reeled last month after data showed inflation running at its hottest pace in more than four decades, prompting a 75-basis-point interest rate increase by the Fed, its biggest hike since 1994.

“June’s US Employment Report lends support to our forecast that the Federal Reserve will raise interest rates by more than is currently discounted in markets, pushing up Treasury yields this year,” analysts at Capital Economics wrote.

“Although we think a US recession will be avoided, we still expect US equities to be weighed down by both rising discount rates and disappointing growth in corporate earnings.”

Meanwhile, OANDA’s Edward Moya wrote that “Wall Street should get used to a choppy stock market for the rest of the summer as the Fed tries to navigate a soft landing.”

Friday’s report found that nonfarm payrolls increased by 372,000 jobs last month, while economists polled by Reuters had forecast 268,000 jobs were added last month. The unemployment rate was unchanged at 3.6% for a fourth straight month.

Other recent numbers have been more ominous, however, and some investors believe it’s only a matter of time before the Fed’s rate hikes are broadly reflected in economic data.

Data on Thursday showed the number of Americans filing new claims for unemployment benefits unexpectedly rose last week, while another report last week showed U.S. manufacturing activity slowed more than expected in June.

“Jobs reports are lagging economic indicators that are often strong entering a downturn,” said Richard Flynn, managing director at Charles Schwab in the UK. “Despite today’s good news, stocks are likely to continue to feel the weight of monetary tightening, shrinking liquidity, and slower economic growth.”

(Reporting by Lewis Krauskopf, Sinéad Carew and Herbert Lash in New York and Sujata Rao in London; Editing by Ira Iosebashvili and David Gregorio)

By Hyunjoo Jin and Akash Sriram

(Reuters) -Billionaire entrepreneur Elon Musk said on Friday he planned to “significantly” increase childcare benefits at his companies, including Tesla Inc, and that the details likely would be announced next month.

His comments came a day after Musk tweeted that he will do his best to help what he called “the underpopulation crisis,” following a media report that said he had secret twins with a top executive at his brain-chip start-up Neuralink.

“Kids are worth it if at all possible. I’m planning to increase childcare benefits at my companies significantly,” Musk said in a tweet https://bit.ly/3AFavSj.

Musk, the father of nine children and whom Forbes ranks as the world’s richest person with an estimated net worth of $237.1 billion, said his foundation, of which he is president, plans to donate directly to families, without providing additional details.

In addition to Tesla and Neuralink, Musk is the founder and CEO of private rocket company SpaceX.

Tesla’s employee benefits include 16 weeks of paid family leave, according to its impact report. That compares with up to 24 weeks of paid parental leave at Alphabet Inc’s Google, which has long been known as a global trailblazer in workplace benefits.

Tesla lags behind other U.S. tech companies and U.S. automakers in terms of the representation of women, according to the impact report.

Women held 17% of Tesla’s U.S. leadership positions, defined as directors and vice presidents, according to Tesla’s 2020 diversity report. Women made up about 22% of executives at other S&P 500 companies, according to a 2020 report published by researcher Equileap.

Some experts raised concern that Musk’s recent return-to-office order for employees could further undermine the representation of women, who are open to the flexibility in working from home.

“Even though the policy’s neutral on its face, it could have a discriminatory impact on women and disabled people,” Melissa Atkins, a partner at Obermayer who represents clients on a variety of labor and employment issues, said.

Musk recently told employees of both Tesla and SpaceX to work in the office at least 40 hours a week, or leave. The policy is in contrast to those of many tech companies and automakers, which offer a mixture of in-office and remote work.

(Reporting by Hyunjoo Jin in San Francisco and Akash Sriram in Bengaluru; Editing by Anil D’Silva, Jonathan Oatis and Leslie Adler)