2025-08-28 18:41
Authorities target multibillion-dollar schemes in fuel sector Operation Hidden Carbon involves 350 search warrants, 1 billion reais in assets blocked Brazil tax authority says funds concealed and shielded assets SAO PAULO/RIO DE JANEIRO/BRASILIA, Aug 28 (Reuters) - Brazilian police and tax officials carried out a series of raids early on Thursday across the country targeting multibillion-dollar money laundering and fraud schemes linked to organized crime in the fuel sector, authorities said. Multinational energy firms have struggled for years to root out organized crime from their distribution networks in Brazil, and the federal tax revenue service said this week's crackdown related to schemes involving more than 10 billion reais ($1.84 billion) in fuel imports and 52 billion reais in domestic fuel sales. Sign up here. It said 46 billion reais in illicit financial transactions linked to the schemes had moved through fintech companies from 2020 to 2024. "In coordinated actions involving the federal police, federal revenue service and state public prosecutors' offices, three simultaneous operations were launched in the financial and fuel sectors, involving 10 states," Brazil's President Luiz Inacio Lula da Silva said in a post on X. Authorities served some 350 search warrants in states across the country and sought to block more than 1 billion reais in assets during the operation, known as Hidden Carbon, the revenue service said. Closed-end funds investigated by authorities held assets including a port terminal, four ethanol plants plus stakes in two others, a fleet of 1,600 trucks, and more than 100 properties, said Andrea Chaves, the revenue service deputy secretary for oversight. "Evidence identified by the tax authority indicates the funds were used to conceal and shield assets, and suggests fund managers were aware of and contributed to the scheme," she said. The criminal enterprises included the involvement of First Capital Command (PCC), a major organized crime gang, public prosecutors in Sao Paulo state said. Organized crime's infiltration of critical economic sectors from energy to finance in Brazil represents a dangerous escalation of risk, said Robert Muggah, cofounder of think tank Igarape Institute. "By capturing strategic assets and exploiting regulatory blind spots, the PCC and its allies are not only draining public revenues; they are undermining trust in the financial system and governance," Muggah said. LINKED COMPANIES Asset manager REAG Investimentos (REAG3.SA) , opens new tab was among the targets of the warrants, according to a court decision seen by Reuters. REAG said in a securities filing it was "fully cooperating with the competent authorities, providing the information and documents requested" as part of the "ongoing investigative procedure." The company's shares were down 13.3% on Thursday afternoon. Chemical firm GPC Quimica, owned by Dexxos Participacoes (DEXP3.SA) , opens new tab, was also named in a court document seen by Reuters. Dexxos "does not condone any illegal acts" and remains available to competent authorities to assist requests for information, it said in a statement. Brazil's Instituto Combustivel Legal (ICL), an industry group created to combat fuel fraud, expects volume of sales for major distributors to rise due to the operations. "The space they have in the market is expected to grow," Emerson Kapaz, ICL's chief executive, told Reuters. Shares of major distributors such as Ultrapar (UGPA3.SA) , opens new tab, Raizen (RAIZ4.SA) , opens new tab and Vibra (VBBR3.SA) , opens new tab jumped after news of the operation became public. In a separate statement, the federal police said they had simultaneously launched the "Quasar" and "Tank" operations, also aimed at cracking down on schemes that allegedly moved more than 23 billion reais in the fuel sector. ($1 = 5.4212 reais) https://www.reuters.com/business/energy/brazil-carries-out-raids-crackdown-organized-crime-fuel-sector-2025-08-28/
2025-08-28 18:40
Dollar lower as focus turns to Fed policy easing Nvidia revenue forecast higher than expectations but not a blowout US economic data positive for market NEW YORK, Aug 28 (Reuters) - Major U.S. stock indexes were slightly higher on Thursday even as Nvidia shares slipped amid uncertainty over its China business, while the dollar weakened against the euro and yen as traders anticipated U.S. interest rate cuts soon. Nvidia's shares (NVDA.O) , opens new tab were down 0.9% as questions around the Sino-U.S. trade war clouded a better-than-expected revenue forecast from the chip designer, released after Wednesday's market close. Nvidia's outlook was above Wall Street expectations but disappointed some investors accustomed to blowout results. Sign up here. But the Dow, S&P 500 and Nasdaq were all higher, and an index of semiconductor stocks (.SOX) , opens new tab was up 0.6%. Investors were mostly breathing a sigh of relief over Nvidia's results and guidance, said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. While there's some confusion over what will happen with China, Nvidia "didn't say anything that pointed to a significant slowdown in anything, so that took away a major risk or overhang this morning," he said. Nvidia CEO Jensen Huang also dismissed concern about an end to a spending boom on AI chips and said opportunities will expand over the next five years. Another plus for stocks was economic data, Tuz said. The day's data showed the U.S. economy grew faster than initially thought in the second quarter, in part driven by business investment in intellectual property such as AI. The Dow Jones Industrial Average (.DJI) , opens new tab rose 20.59 points, or 0.05%, to 45,585.82, the S&P 500 (.SPX) , opens new tab rose 16.68 points, or 0.26%, to 6,498.08 and the Nasdaq Composite (.IXIC) , opens new tab rose 118.63 points, or 0.55%, to 21,708.53. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab rose 3.33 points, or 0.35%, to 956.37. The pan-European STOXX 600 (.STOXX) , opens new tab index fell 0.2%. Concerns over France's fiscal path are likely to stay in focus for European markets following Prime Minister Francois Bayrou's gamble to win backing for his deeply unpopular debt-reduction plan via a confidence vote next month. The euro was up 0.41% at $1.1685. Against the Japanese yen , the dollar weakened 0.37% to 146.84. Investors are keen to find out more about prospects for interest rate cuts ahead of the Federal Reserve's September 16-17 policy meeting. On Wednesday, New York Fed President John Williams said it is likely interest rates can fall at some point but policymakers will need to see what upcoming data indicate about the economy to decide if it's appropriate to make a cut at the September meeting. Traders currently are pricing in roughly 87% odds of a quarter-point rate cut in September, according to CME's FedWatch tool. In total, they see 137 basis points of cuts by the end of 2026. Also key this week will be a report Friday on U.S. personal consumption expenditures - the Fed's preferred inflation measure. Investors were still digesting news on Federal Reserve Governor Lisa Cook. Cook filed a lawsuit on Thursday claiming U.S. President Donald Trump has no power to remove her from office, setting up a legal battle that could reset long-established norms for the U.S. central bank's independence. Interest rate-sensitive two-year yields rose but held near an almost four-month low as traders weighed prospects for Fed rate cuts. The two-year note yield was last up 2.2 basis points at 3.645%. The benchmark 10-year note fell 2.3 basis points to 4.215%. Oil and gold prices rose. U.S. crude rose 0.47% to $64.44 a barrel and Brent rose to $68.38 per barrel, up 0.48% on the day. Spot gold rose 0.62% to $3,418.00 an ounce. https://www.reuters.com/world/china/global-markets-wrapup-6-2025-08-28/
2025-08-28 18:36
BRASILIA, Aug 28 (Reuters) - Brazil's government posted a primary budget deficit of 59.124 billion reais ($10.9 billion) in July, Treasury data showed on Thursday, more than six times the deficit from the year-earlier period but close to analysts' estimates. The increase stemmed from a 28.3% inflation-adjusted rise in government spending, driven mainly by court-ordered payments and pension benefits. Meanwhile, net revenue rose 3.9% in the period, helped by higher tax collection. Sign up here. Analysts polled by Reuters expected a primary deficit of 58.55 billion reais. The primary deficit last month was the worst for the month of July since 2020, when it hit 120.6 billion reais in inflation-adjusted terms due largely to high expenses tied to the COVID-19 pandemic. The year-over-year jump in the deficit was boosted by the postponement of government court-ordered payments to July. Last year, those payments had been made in the first half of the year. The 12-month deficit reached 34.1 billion reais, equivalent to 0.3% of gross domestic product, the data showed, missing the government's official target for 2025 of a zero-figure deficit, with a tolerance band of 0.25% of GDP in either direction. ($1 = 5.4212 reais) https://www.reuters.com/world/americas/brazils-government-deficit-jumps-july-12-month-deficit-misses-target-2025-08-28/
2025-08-28 18:16
SAO PAULO, Aug 28 (Reuters) - Brazilian lender BTG Pactual (BPAC3.SA) , opens new tab and the World Bank's private sector arm International Finance Corporation announced on Thursday up to $1 billion in joint investments on sustainability and development initiatives. WHY IT'S IMPORTANT Private sector engagement in sustainability has gained momentum globally, with private institutions promoting climate finance and development-focused investments. Sign up here. Brazil is home to much of the Amazon rainforest and a critical region for biodiversity and climate solutions. BTG Pactual is Latin America's largest investment bank. BY THE NUMBERS The partnership is set to mobilize up to $1 billion by the end of 2028 through co-financing, equity investments and private equity funds. KEY QUOTES "The private sector can and must be a key player in advancing the climate agenda and driving transformative initiatives that improve lives and foster economic growth," said Alfonso Garcia Mora, IFC's regional vice-president for Europe, Latin America and the Caribbean. BTG Pactual CEO Roberto Sallouti said "the allocation of these resources will be done carefully, adhering to technical and financial criteria." ADDITIONAL CONTEXT The investments are aimed at boosting initiatives to tackle climate change and promote sustainable economic growth in Brazil and Latin America, IFC and BTG said, targeting social and environmental development, conservation, infrastructure, and the so-called bioeconomy. https://www.reuters.com/sustainability/boards-policy-regulation/ifc-btg-pactual-invest-up-1-billion-latin-america-sustainability-2025-08-28/
2025-08-28 17:01
73% of investors based in U.S. Europe hedge funds receive highest interest LONDON, Aug 28 (Reuters) - Investors plan to increase their hedge fund exposure to prefer Europe and Asia over the U.S. for the first time since 2023 as wealthy financiers diversify away from the United States, a BNP Paribas (BNPP.PA) , opens new tab survey sent to clients on Thursday showed. Heightened U.S. policy uncertainty and tariffs have prompted investors to move away from U.S. markets this year, with Europe also benefiting as Germany ramps up fiscal stimulus to boost long-term growth prospects. Sign up here. European hedge funds surveyed by BNP Paribas said that they received higher inflows of investor money than elsewhere in the world during the first half of 2025. Europe was the top region with 37% of investors adding money in the first half of 2025, while 33% of allocators planned to add more in the second half, the survey showed. Hedge funds in the U.S. and Asia shared a little less than half, 47%, of the money flowing into hedge funds and Europe took the rest. Around a third planned to increase hedge fund investments in the Asia-Pacific region and Europe, whereas 14% said they would invest in North American-based hedge funds, the report said. BNP Paribas' Hedge Fund Outlook surveyed 140 financiers in 16 countries representing $960 billion of hedge-fund-related assets. Credit hedge funds reported the highest inflows, around $4.5 billion, from investors, followed by multi-manager hedge funds which trade many strategies under one roof and then stock trading hedge funds. Global equity funds outside the United States drew their biggest inflows in more than four-and-a-half years in July, Reuters reported earlier this month. Smaller and mid-sized hedge funds, all under $10 billion, received the most investor money, BNP Paribas said. Hedge fund investors are still predominantly based in the United States, said the survey. About 73% of the survey respondents who invest in hedge funds were based there, compared to 32% who were in Europe and 23% in Asia (ex Japan). https://www.reuters.com/business/finance/hedge-funds-europe-gain-favour-investors-steer-away-us-says-bnp-paribas-2025-08-28/
2025-08-28 14:49
LONDON, Aug 28 (Reuters) - Sterling edged up against a weakening dollar on Thursday as traders continued to worry about threats to the U.S. central bank's independence. The pound was 0.17% higher on the day at $1.3502, and set for a 2.4% monthly rise against the dollar in September. The U.S. currency has been under pressure from President Donald Trump's ramped-up campaign to exert more influence at the Federal Reserve. Sign up here. Fed Governor Lisa Cook asked a U.S. judge to issue a temporary order declaring that Trump's effort to fire her is unlawful and to bar the Fed from taking steps to remove her. Sterling has also had some support by a pullback in expectations of rate cuts by the Bank of England and buoyant economic data. Money markets expected the BoE to keep rates unchanged at 4% when it meets in September. BoE Monetary Policy Committee member Catherine Mann said on Tuesday that she saw a strong case to keep the Bank Rate on hold for a prolonged period but stood ready to cut rates forcefully if downside risks to growth materialise. "Since the beginning of the year, the pound has tended to move sideways against the G10 currency average, while the U.S. dollar has depreciated significantly," said Michael Pfister, FX analyst at Commerzbank, mentioning concerns about the independence of the Fed as bad news for the dollar. Commerzbank has changed positioning around sterling saying in a note on Thursday that the risks of a weaker pound are increasing amid a difficult upcoming autumn budget, persistent UK inflation and cooled-down labour market. "The latest data makes it clear that the United Kingdom is in a difficult situation, and our previously rather optimistic view of the pound is probably no longer justified," Pfister said. British producer output price inflation rose to a two-year high of 1.9% in June, up from 1.3% in May, according to preliminary official data released on Wednesday, which adds to signs of inflationary pressures facing the British economy. Earlier this month the BoE revised up its near-term inflation forecast to 4% for September and forecast that inflation would not be back at its 2% target until the second quarter of 2027. Against the euro, sterling was 0.2% higher at 86.40 pence . https://www.reuters.com/markets/europe/sterling-rises-against-weakening-dollar-traders-focus-fedtrump-2025-08-28/
