2025-09-22 19:53

Peso strengthens after central bank had to defend currency last week Argentina removes export taxes on grains through October midterm election Investors eye Milei's policy adjustments past midterm vote NEW YORK, Sept 22 (Reuters) - Argentine financial assets rallied on Monday, with stocks rising the most in six months, international dollar bonds up more than 6 cents and the peso strengthening after Washington pledged full support for Argentina's right-wing government ahead of key midterm elections next month. U.S. Treasury Secretary Scott Bessent said "all options" are on the table for stabilizing Argentina, including swap lines and direct currency purchases, while underscoring President Donald Trump's confidence in Argentine President Javier Milei and his economic team. Sign up here. Bessent told reporters after earlier announcing support for Argentina on social media that any U.S. action would be "large and forceful," but said no steps would be taken until after he and Trump meet with Milei in New York on Tuesday. Argentine markets have fallen sharply in recent weeks, with international bonds down more than 20% for the year through Friday. The peso has been pressing against the weaker limit of a band set months ago, as corruption allegations inside Milei's circle and a larger-than-expected loss in a local election in Buenos Aires triggered investor concern over Milei's ability to reshape the economy. "Argentina's assets were in desperate need of a circuit breaker — and they just got one," said Alejo Czerwonko, CIO for emerging markets in the Americas at UBS. "Bessent's intervention carries outsized weight at this fragile juncture. It provides the Milei administration with a critical window to reorient ahead of October's midterms." A favorable political outcome for the government in the October election would go a long way toward containing investor anxiety ignited by the Buenos Aires vote earlier this month, Czerwonko added. MARKET RALLY IS A REBOUND An index of Argentine stocks traded in U.S. exchanges (.BKAR) , opens new tab rose 14%, and the local benchmark (.MERV) , opens new tab gained 7% Monday after falling more than 15% over the past two weeks. Earlier, the Argentine government said it would remove export taxes on all grains through next month, aiming to increase sales and boost the supply of dollars to meet demand from institutional investors. That means the tax will be removed past the midterm election on October 26. "Is this the 'whatever it takes' moment for Argentina?" said Armando Armenta, senior economist at AllianceBernstein, alluding to pivotal support from former ECB chief Mario Draghi to the euro experiment back in 2012. "Seems like Milei is getting the support to avoid a financial crisis ahead of the midterm election and ensure a smoother transition into 2026." The 2046 sovereign bond was up 8.3 cents at 55.5 cents on the dollar, data from MarketAxess showed. The peso strengthened 4.7% at 1,408.5 per dollar, after the Argentine central bank last week burned through more than $1 billion of reserves to defend it. Despite the rally in eurobonds, yields were still relatively high, between 16% and 26% across maturities. Investors were still focused on Milei's willingness to change course, which has been tested both in the streets and by markets. TEMPORARY RELIEF? "Depending on the scope and nature, a financial backstop from the U.S., combined with the export tax measures announced this morning, could help Milei more effectively manage within the current FX framework between now and the (midterms)," said Kathryn Exum, co-head of sovereign research at Gramercy Funds Management. This could reduce the rate at which authorities burn through precious reserves, which at current levels is unsustainable, Exum added. U.S. potential support to Argentina would likely only offer temporary relief for pressured assets, said Pramol Dhawan, head of emerging market portfolio management at PIMCO. "The country doesn't generate enough dollars at current exchange rates," he said. "Markets are testing the currency regime's viability and expect difficult adjustments — particularly currency devaluation — to rebalance the economy." He said that the adjustment, alongside continued U.S. and IMF support, "could give the country necessary breathing room for fundamental reforms." https://www.reuters.com/world/americas/argentina-markets-soar-after-us-bessent-pledges-support-2025-09-22/

2025-09-22 19:28

Bessent says US purchases of Argentine pesos, dollar debt among options Markets rally on pledge of support Milei government shaken recently by local election and scandal Trump, Bessent to meet with Milei in New York on Tuesday WASHINGTON, Sept 22 (Reuters) - U.S. Treasury Secretary Scott Bessent on Monday said that "all options" were on the table for stabilizing Argentina, including swap lines and direct currency purchases, while underscoring President Donald Trump's confidence in Argentine President Javier Milei and his economic team. Bessent told reporters any U.S. action would be "large and forceful," but said no steps would be taken until after he and Trump meet with Milei in New York on Tuesday on the sidelines of the United Nations General Assembly. Sign up here. Asked if Washington could act immediately afterwards, Bessent said: "We'll see where the markets are and what the level of outflows are - or maybe the outflows turn into inflows - but no one should doubt the resolve of this administration, or my resolve." Bessent refused to be drawn on what specific steps the U.S. might take, but said, "I can tell you that it will be large and forceful." Argentine financial assets rallied on Monday on the news, with U.S.-traded stocks up over 10% and the peso strengthening, after sharp drops in recent weeks that included international bonds declining more than 20% for the year through Friday. Markets have been roiled by corruption allegations inside Milei's circle and a larger-than-expected loss in a local election in Buenos Aires, reflecting growing frustration with austerity measures and triggering investor concern over Milei's ability to continue to reshape the economy, with October midterm elections on the horizon. Bessent, a former hedge fund executive, said he did not see a risk of financial contagion from the fallout and underlined Washington's confidence in Argentina's implementation of economic reforms. Since taking power in late 2023, Milei has had some success in taming high inflation and achieving a budget surplus. "What they're trying to do is bolster Argentina until the elections - if they can get that far," said Mark Sobel, a former senior U.S. Treasury official and current U.S. chairman of the Official Monetary and Financial Institutions Forum think tank. "Milei deserves tremendous credit for what they've done on the fiscal and monetary policy front ... but the exchange rate is just vastly overvalued and they've got to fix that," he said. Serious steps to do that would cause inflation, he said, posing further challenges for Milei ahead of the election. NO NEW TERMS FOR US SUPPORT Bessent first announced U.S. support for Argentina in a social media post, saying all options were on the table. "These options may include, but are not limited to, swap lines, direct currency purchases, and purchases of U.S. dollar-denominated government debt from Treasury's Exchange Stabilization Fund," Bessent wrote on X. He told reporters any U.S. action would not result in new demands or conditions beyond Argentina's continued adherence to the terms of its loan deal with the International Monetary Fund. "I can't speak for the president, but as far as Treasury is concerned, there's no conditionality," he said. "We remain confident that President @JMilei's support for fiscal discipline and pro-growth reforms are necessary to break Argentina's long history of decline," Bessent wrote on X. Argentina in April signed a new $20 billion four-year loan deal with the IMF, where the U.S. is the biggest shareholder. The deal required the country to dismantle years-long currency controls and loosen its grip on the peso, but economists say the currency remains overvalued. Argentina's central bank made its largest daily dollar sale in nearly six years on Friday as it continued to use reserves to support the local currency, meeting strong dollar demand from institutional investors wary of political instability. The bank's latest intervention was for $678 million, bringing the total amount of dollars sold in the last three sessions to $1.1 billion. Argentina shored up dwindling foreign reserves in April by renewing a $5 billion activated swap line with China for another year. TREASURY SATISFIED WITH IMF'S POSITION Bessent told reporters that the IMF was unable to make adjustments to its Argentina program until after October's legislative elections. He said he spoke with IMF chief Kristalina Georgieva over the weekend and was "very satisfied" with the global lender's position. It was not immediately clear if Georgieva, who is also due to attend the U.N. meetings, would meet with Milei in New York. The IMF had no immediate comment on Argentina's situation. Asked if Milei ally Elon Musk had played a role, given reports that Musk spoke to Trump on Sunday, Bessent said: "not that I know of." He said the Trump administration hoped to solidify what it sees as a rightward shift in Latin American countries, including potentially Colombia. Bessent blamed Argentina's turmoil on skittish investors with some "muscle memory" from Argentina's previous administration. "Either there's some risk management or a rush for the exit with the idea that the opposition could do well in the upcoming election," he said. https://www.reuters.com/world/americas/us-treasury-chief-us-ready-support-argentina-leaders-meet-tuesday-2025-09-22/

2025-09-22 19:20

Sept 22 (Reuters) - Danish offshore wind developer Orsted (ORSTED.CO) , opens new tab can restart work on the nearly finished Revolution Wind project off the coast of Rhode Island, a federal judge ruled on Monday, after President Donald Trump's administration halted the project last month. The ruling is a legal setback for Trump, who has sought to block expansion of offshore wind in U.S. waters. It is a palpable victory for Orsted, which has been losing $2 million a day since the project was halted on August 22. Sign up here. Revolution Wind is located 15 miles off the coast. Once completed, it is expected to produce enough electricity to power 350,000 homes in Rhode Island and Connecticut. Orsted's U.S.-listed shares were up nearly 9% at $11.60 following the ruling by U.S. District Judge Royce Lamberth. The U.S. Interior Department said it would continue to review the project while work proceeds. "As a result of the Court’s decision today, Revolution Wind will be able to resume construction as BOEM (the U.S. Bureau of Ocean Energy Management) continues its investigation into possible impacts by the project to national security and prevention of other uses on the Outer Continental Shelf," an Interior spokesperson said. Attorneys for the Trump administration had argued that the project, located off the coast of Rhode Island, failed to comply with conditions of its permit related to conflicts with national security and scientific ocean surveys. Revolution Wind disputed those claims. At the end of a two-hour court hearing in Washington, Lamberth issued a preliminary injunction that blocks the Trump administration from enforcing the order to halt construction. Lamberth, a senior judge appointed by Republican President Ronald Reagan, said the Trump administration had offered contradictory reasons for issuing its stop work order, and that the explanations offered weeks after the halt were “the height of arbitrary and capricious” government conduct. He also said Revolution Wind had reasonably relied on government assurances that were withdrawn without due process, imperiling a $5 billion investment. “If Revolution Wind cannot meet benchmark deadlines, the entire project could collapse,” Lamberth said. “There is no doubt in my mind of irreparable harm to the plaintiffs.” Orsted and its joint venture partner Skyborn Renewables had asked for a preliminary injunction in a lawsuit they filed earlier this month challenging the U.S. Interior Department's stop-work order. "Revolution Wind will resume impacted construction work as soon as possible, with safety as the top priority," an Orsted spokesperson said in a statement, adding that it would continue to seek a resolution with the administration. Rhode Island and Connecticut have also sued the administration over the stop work order. Connecticut Governor Ned Lamont issued a statement praising the ruling. "Today’s ruling allowing Revolution Wind to resume work is extremely encouraging for workers and our energy future. We will continue to engage with the federal government on a durable path forward for this project and on shared energy priorities,” Lamont said. https://www.reuters.com/sustainability/climate-energy/us-court-weighs-trump-halt-rhode-island-offshore-wind-project-2025-09-22/

2025-09-22 19:17

Sept 22 (Reuters) - Chipmaker Nvidia (NVDA.O) , opens new tab is set to invest up to $100 billion in ChatGPT-parent OpenAI, signing a letter of intent for a strategic partnership to deploy at least 10 gigawatts of compute, the companies said on Monday. Nvidia has used its financial clout to keep its hardware central to the buildout of artificial intelligence systems. Keeping OpenAI, which is also exploring its own chip designs, as a key customer could help the company reinforce its dominance as the industry considers rival suppliers. Sign up here. Here are some analyst reactions to the partnership: MATT BRITZMAN, SENIOR EQUITY ANALYST, HARGREAVES LANSDOWN "For Nvidia, the prize is huge — every gigawatt of AI data centre capacity is worth about $50 billion in revenue, meaning this project could be worth as much as $500 billion. By locking in OpenAI as a strategic partner and co-optimizing hardware and software roadmaps, Nvidia is ensuring its GPUs remain the backbone of next-gen AI infrastructure. The market is clearly big enough for multiple players, but this deal underscores that, when it comes to scale and ecosystem depth, Nvidia is still setting the pace — and raising the stakes for everyone else." JACOB BOURNE, TECHNOLOGY ANALYST, EMARKETER "Demand for Nvidia GPUs is effectively baked into the development of frontier AI models, and deals like this should also ease concerns about lost sales in China. It also throws cold water on the idea that rival chipmakers or in-house silicon from the Big Tech platforms are anywhere close to disrupting Nvidia's lead. For OpenAI, it signals greater independence as it continues diversifying away from its Microsoft partnership and races to develop its next-generation models." ANSHEL SAG, PRINCIPAL ANALYST, MOOR INSIGHTS & STRATEGY "I think this strengthens the partnership between the two companies that has existed since the beginning of OpenAI's existence. This also validates Nvidia's long-term growth numbers with so much volume and compute capacity, also enabling OpenAI to scale to even bigger customers." BEN BAJARIN, CEO OF TECHNOLOGY CONSULTING FIRM CREATIVE STRATEGIES "Really the point Nvidia was making was that it's just enabling OpenAI to meet surging demand and, at this point, we know there's surging demand for Nvidia GPUs, because that's primarily what OpenAI runs on." KIM FORREST, CHIEF INVESTMENT OFFICER, BOKEH CAPITAL "This sounds like Nvidia is investing in its largest customer. These arrangements can be beneficial for both parties. But there can be dangers as well. Being totally linked with each other can cause for short-sightedness and can make an entry point for other chip competitors to come into other AI companies and woo them. We are not sold on the model of LLM as being the technology that will create vast amounts of productivity that everyone expects." GIL LURIA, ANALYST AT D.A. DAVIDSON "While the announcement is positive for OpenAI's ability to ramp, we are concerned Nvidia has become the 'investor of last resort,' bailing out OpenAI's overextended commitments." DAVID WAGNER, PORTFOLIO MANAGER AT APTUS CAPITAL ADVISORS "Nvidia continues to double-down on AI as we always figured that CEO Jensen Huang would want to invest downward into AI factories - this announcement is much earlier than many would have expected." STACY RASGON, ANALYST AT BERNSTEIN "On the one hand, this helps OpenAI deliver on what are some very aspirational goals for compute infrastructure, and helps Nvidia ensure that stuff gets built. On the other hand the 'circular' concerns have been raised in the past, and this will fuel them further." https://www.reuters.com/business/view-analysts-react-nvidias-100-billion-investment-openai-2025-09-22/

2025-09-22 18:57

Sept 22 (Reuters) - Como will donate all proceeds from Wednesday's Coppa Italia match versus Sassuolo to support the local community after the city suffered flood damage following torrential rain in Northern Italy overnight, manager Cesc Fabregas said on Monday. The centre of Como was badly hit after Lake Como flooded following intense rainfall, with water flowing through the city's streets, partially submerging cars and causing damage to homes and businesses. Sign up here. "The club will donate all the proceeds from the Italian Cup match against Sassuolo ... to support the local community during this difficult time," Fabregas said in an Instagram post referring to the second-round tie between the two Serie A teams. "My thoughts are with everyone in Como today. Seeing our beautiful lake flood and the damage it has brought is heartbreaking," he added. "Como is more than just a city to me, it is home, it is family, it is community. "To all the people, families, and businesses affected, please know you are not alone," Fabregas said. The former Spain midfielder ended his playing career at Como in 2023, with the club competing in Serie B, and began his managerial career there, helping them gain promotion as assistant coach and taking over as manager last season. https://www.reuters.com/sports/soccer/como-donate-italian-cup-tie-proceeds-flood-damage-relief-says-fabregas-2025-09-22/

2025-09-22 18:50

Capital hike to alleviate Cosan's debt Cosan shares drop 21% after announcement Analysts see potential benefits despite shareholder dilution SAO PAULO, Sept 22 (Reuters) - Brazilian conglomerate Cosan's (CSAN3.SA) , opens new tab plan to raise up to 10 billion reais ($1.9 billion) through public offerings will go towards alleviating the company's debt, an executive said on Monday, adding none of the funds would go to helping Raizen, its embattled joint venture with oil major Shell (SHEL.L) , opens new tab. Although analysts welcomed the move, Cosan's shares plunged 21%, on track for their worst day ever. The losses wiped off around 3 billion reais from its market cap. Raizen's shares slipped 9%. Sign up here. "The capital will be used exclusively to de-leverage Cosan," CFO Rodrigo Araujo said during an investor call following the announcement of the capital hike. Cosan reported a net debt of 17.5 billion at the end of June, stable from the end of the first quarter. Raizen (RAIZ4.SA) , opens new tab produces sugar and ethanol and is one of the biggest energy companies in Brazil, Latin America's largest economy. Low sugarcane yields have however hit its bottom line, debt and stock performance. Shell declined to comment on Cosan's deal. In addition to Raizen, Cosan's portfolio includes logistics firm Rumo (RAIL3.SA) , opens new tab, lubricants company Moove, natural gas firm Compass and agricultural property manager Radar. Its capital increase plan includes a 4.5 billion-real investment from BTG Pactual Holding, which has billionaire Andre Esteves among its partners, and an additional 2 billion reais from Perfin Infra Fund. Cosan's founder, Rubens Ometto, is set to contribute with 750 million reais through his family office, and a follow-up offering of up to 2.75 billion reais is also planned. Cosan executives said the move was not the "only step" in Cosan's deleveraging process, as the company will continue pursuing asset sales. It can now, however, wait for more favorable market conditions. MIXED REACTION Citi analysts said the deal implies a 40-50% dilution to current shareholders but should be positive as Cosan would enter "a new phase, which should be marked by deleveraging in the holding company." Ometto's holding firm Aguassanta, BTG and Perfin will control Cosan through a 20-year shareholders' agreement. The new board will be comprised of five members nominated by Cosan and four jointly appointed by BTG and Perfin. The financial restructuring also sets the stage for leadership succession at Cosan, the company said. Ometto, or a successor appointed by him, is expected to remain chairman for the next six years. UBS analysts said they saw Cosan emerging much healthier after the process. ($1 = 5.3378 reais) https://www.reuters.com/business/energy/brazils-cosan-says-10-billion-capital-hike-relieve-debt-not-fund-raizen-2025-09-22/