2025-07-24 20:16

Israel looking at latest Hamas proposal for Gaza truce Conditions in Gaza deteriorating, hunger widespread Pressure on both Israel and Hamas to agree to ceasefire JERUSALEM/CAIRO, July 24 (Reuters) - Israel and the United States recalled their delegations from Gaza ceasefire talks for consultations on Thursday, with U.S. envoy Steve Witkoff accusing the Palestinian militant group Hamas of failing to act in good faith in the talks. It marked the latest setback in efforts to secure a deal that would bring a ceasefire to Gaza, secure the release of Israeli hostages held by Hamas, and bring respite to Palestinians suffering a sharply worsening humanitarian crisis. Sign up here. Witkoff said mediators had made a great effort but "Hamas does not appear to be coordinated or acting in good faith". "We will now consider alternative options to bring the hostages home and try to create a more stable environment for the people of Gaza," he wrote on X. Hamas said it was surprised by Witkoff's remarks, adding that the group's position had been welcomed by mediators and had opened the door to reaching a comprehensive agreement. "The movement affirms its keenness to continue negotiations and engage in them in a manner that helps overcome obstacles and leads to a permanent ceasefire agreement," Hamas added in a statement early on Friday. An Israeli official with knowledge of the talks said Hamas' response to the latest ceasefire proposal "does not allow for progress without a concession" by the group but that Israel intended to continue discussions. Both Israel and Hamas are facing pressure at home and abroad to reach a deal following almost two years of war, with the humanitarian situation inside Gaza deteriorating and Israelis worried about the conditions in which hostages are being held. Dozens of people have starved to death in Gaza the last few weeks as a wave of hunger crashes on the enclave, according to local health authorities. British Prime Minister Keir Starmer said the suffering and starvation in Gaza was an "unspeakable and indefensible" humanitarian catastrophe and called on Israel to urgently let in aid. "While the situation has been grave for some time, it has reached new depths and continues to worsen. We are witnessing a humanitarian catastrophe," Starmer said in a statement. He will hold an emergency call with French and German partners on Friday to discuss what could be done to "stop the killing and get people the food they desperately need," he said. The Gaza health ministry said two more people had died of malnutrition. The head of Shifa Hospital in Gaza City said the two were patients suffering from other illnesses who died after going without food for several days. Earlier in the day, there had been some apparent signs of progress in the mediation. A senior Hamas official told Reuters that there was still a chance of reaching a ceasefire deal but it would take a few days because of what he called Israeli stalling. A senior Israeli official had been quoted by local media as saying the new text was something Israel could work with. But, Israel's Channel 12 said a rapid deal was not within reach, with gaps remaining between the two sides, including over where the Israeli military should withdraw to during any truce. Witkoff's team did not immediately respond to a request to explain the Hamas demands that led to his withdrawal of the U.S. negotiators. The Hostages Families Forum, representing the family members of those held in Gaza, expressed concern at the recall of the Israeli team. "Each day that passes endangers the hostages’ chances of recovery and risks losing the ability to locate the fallen or gain vital intelligence about them," it said. PEPPER SPRAY FIRED AT AID SITE Women going to fetch aid for their families on Thursday said U.S. contractors organising distribution asked them to come to pick up goods and then fired tear gas and pepper spray at them. "The Americans said 'go, go', and then said no, get back. They sprayed us with pepper spray so we went away. Five minutes later they shot tear gas at us ... is this American humanitarian aid?" said Mervat al-Sakani. Asked for comment, a spokesperson for the aid organisation - the Gaza Humanitarian Foundation - said a limited amount of pepper spray was used “to prevent civilian injury due to overcrowding”, adding that GHF “didn’t want people to get hurt.” The spokesperson said women-only aid distribution had been "a major success" overall. GHF, a U.S.-and Israeli-backed organization, began distributing food packages in Gaza at the end of May. The U.N. has called the GHF’s model unsafe and a breach of humanitarian impartiality standards, which GHF denies. The U.N. rights office said on July 15 it had recorded at least 875 killings within the preceding six weeks in the vicinity of aid sites and food convoys in Gaza - the majority of them close to GHF distribution points. Most of those deaths were caused by gunfire that locals have blamed on the Israeli military. The military has acknowledged that civilians were harmed, saying that Israeli forces had been issued new instructions with "lessons learned". Israel, which cut off all supplies to Gaza from the start of March and reopened it with new restrictions in May, says it is committed to allowing in aid but must control it to prevent Hamas diverting it. Israel says it has let in enough food for Gazans, and blames the United Nations for being slow to deliver it; the U.N. says it is operating as effectively as possible under conditions imposed by Israel. The war began when Hamas killed some 1,200 people and took 251 hostages in its October 7 attacks on Israel, according to Israeli tallies. Israel has since killed nearly 60,000 Palestinians in Gaza, according to Gaza health authorities. https://www.reuters.com/business/energy/israel-us-recall-teams-gaza-truce-talks-us-says-hamas-not-showing-good-faith-2025-07-24/

2025-07-24 19:55

Megamerger would create the first coast-to-coast US railroad operator Discussions have prompted BNSF and CSX to explore deal options, sources say US regulator prepares to receive up to two megamerger proposals, source says July 24 (Reuters) - Union Pacific (UNP.N) , opens new tab, the largest U.S. railroad operator, said on Thursday it is in advanced talks with rival Norfolk Southern (NSC.N) , opens new tab, signaling that a deal to form a $200 billion coast-to-coast rail company could be close - and potentially trigger further consolidation among remaining freight rail giants. The combination, which would be the largest-ever buyout in the sector, would create the first modern West-to-East single-line freight railroad in the United States, significantly affecting how goods from grains to chemicals to autos move across the country. Sign up here. The talks have also prompted competitors BNSF, owned by Berkshire Hathaway (BRKa.N) , opens new tab, and CSX (CSX.O) , opens new tab to explore merger options, people familiar with the matter said. Agents at the U.S. Surface Transportation Board, the federal regulatory agency overseeing railroads, are already conducting preparatory work, anticipating they could soon receive not just one, but two megamerger proposals, a person close to the discussions said. If completed, the deal would combine Union Pacific’s dominant position in the western two-thirds of the U.S. with Norfolk Southern’s 19,500-mile network spanning 22 eastern states. Union Pacific said there were no assurances that an agreement would be reached. Critics warned that creating two railroad giants could drive up shipping rates. Union Pacific and BNSF dominate the West, while Norfolk and CSX control the East. Mike Steenhoek, executive director of the Soy Transportation Coalition, said many agricultural and other railroad shippers will be concerned about decreased competition. "This could result in increased rates and diminished service," he added. TRUMP EFFECT The fact that talks are advancing has surprised many in the rail industry and on Wall Street, who believed the highly concentrated market would not allow further consolidation. But the talks show how thinking around antitrust issues has shifted under President Donald Trump's administration. Such a merger was considered unlikely under former President Joe Biden's administration, which was more aggressive in antitrust enforcement. Executive orders issued by Trump to regulatory agencies aimed at removing anti-competitive barriers have opened the door to potential megamergers in the industry, sources said. Since early 2025, the STB has signaled a more industry-friendly approach to merger reviews. Chairman Patrick Fuchs, appointed to the post in January by Trump, has advocated for faster timelines for preliminary assessments, a greater focus on competitive balance rather than blocking consolidation, and a willingness to enforce conditions post-merger rather than deny deals preemptively. Even a more expedited review could take between 19 and 22 months, one person involved in the discussions said. Analysts say any merger would face scrutiny from multiple federal agencies and require support from labor unions, who have long opposed consolidation, warning that such deals threaten jobs and risk disrupting rail service. But a transcontinental railroad could also streamline freight movement across the U.S. by eliminating interline transfers at congested hubs like Chicago, said Barclays transportation analyst Brandon Oglenski. The merger risks being approved under conditions that could erode its strategic and financial value, such as forced divestitures, open access mandates, or new regulations on intermodal freight, said Anthony Hatch, an independent transportation analyst at ABH Consulting. "The impact on rates is not that straightforward," Hatch said. "Existing railroads already have significant pricing power and regulators have power to challenge prices." The U.S. freight rail system already functions as two regional duopolies by point of origin, he said, which limits shipper choice within each region as most freight originates and terminates within one of these two zones. Norfolk Southern shares edged lower in midday trading, while Union Pacific fell 4%. CHALLENGES The North American rail industry has faced challenges including volatile freight volumes, rising labor and fuel costs, and mounting pressure from shippers over service reliability. Union Pacific is valued at approximately $138 billion, according to LSEG data. The company has been grappling with sluggish automotive volumes and volatile coal shipments as power producers shift to natural gas, which is shipped by pipeline. Norfolk Southern, which is worth about $63 billion, is emerging from a turbulent period that included the ouster of its former CEO amid ethics investigations, a high-profile boardroom clash with activist investor Ancora, and a costly train derailment that set the company back about $1.4 billion. The last major consolidation in the industry was the $31 billion merger between Canadian Pacific (CP.TO) , opens new tab and Kansas City Southern, which created the first and only single-line rail network connecting Canada, the United States, and Mexico. https://www.reuters.com/world/us/union-pacific-talks-advance-regulator-readies-historic-rail-merger-review-2025-07-24/

2025-07-24 19:41

Little reaction in euro after ECB holds rates steady, as expected Expectations for higher rates support yen, but politics weigh Expected trade deal with Europe in line with expectations July 24 (Reuters) - The dollar traded sideways versus the euro on Thursday after the European Central Bank held rates steady, and was confined to a tight range against the yen as prospects for higher Japanese rates offset worries about political risk after Sunday's elections. The greenback showed fractional gains late in a subdued U.S. session, with investors girding for a busy news flow next week. Sign up here. The European Central Bank left its policy rate at 2%, as expected, on Thursday, taking a break after a year of policy easing to wait for clarity over Europe's future trade relations with the United States. "The view that the ECB is probably on hold here is probably gaining a bit more traction. We've trimmed expectations for the cuts in September to certainly less than 50/50," said Shaun Osborne, chief foreign exchange strategist at Scotiabank in Toronto. The Japanese central bank's deputy governor, Shinichi Uchida, said Tuesday's trade deal with Washington had reduced economic uncertainty, comments that fuelled optimism in the market about the potential resumption of interest rate hikes. Analysts believe the yen will face persistent headwinds after Sunday's upper house election, with the opposition considering a no-confidence motion. The European Union is nearing a deal that would impose a broad 15% tariff on EU goods, diplomats said. The rate, which could also extend to cars, would mirror the framework agreement the United States struck with Japan. "The ECB faces a challenge that is quantitatively different from the BoJ's," said Thierry Wizman, global forex and rates strategist at Macquarie Group. "The euro has appreciated by far more than the JPY so far in 2025, meaning that the disinflationary impulse from U.S. import tariffs may be greater in the EU than in Japan, or the ECB may suspect as much," he added. PMI data showed fragility in France following budget-cut proposals there, but also resilience in Germany and other parts of the euro zone. Data showed that German business activity continued to grow marginally in July. "As of now, there has been very little tariff impact on the hard data," said Mohit Kumar, economist at Jefferies. ECONOMIC FALLOUT Meanwhile, risk assets rallied as the trade deals eased fears over the economic fallout of a global trade war. Next week the Federal Open Market Committee meets and is expected to leave rates where they are as policy makers wait for the expected impact from tariffs on inflation and growth to show up. Traders are now pricing in a 60% chance of a quarter point September rate cut, according to CME's FedWatch tool. A number of U.S. employment releases next week culminate with Friday's big June payrolls report, while the July Personal Consumption Expenditures Price Index and the first revision to 2nd quarter Gross Domestic Product could also move markets. "A lot of event risk next week and not just from the Fed, we've got a lot of data next week as well, so that's probably going to shape expectations to some extent for September," Osborne said. The euro was last off 0.03% $1.1766, near the $1.1830 high from earlier this month, which marked its strongest level in more than three years. Against the yen , the dollar was 0.27% firmer at 146.88, having hit a two-week low earlier in the session at 145.86. Olivier Korber, forex strategist at Societe Generale, expects the yen to strengthen further, citing support from the trade deal and prospects for higher interest rates. Japanese Prime Minister Shigeru Ishiba denied on Wednesday he had decided to quit after a source and media reports said he planned to announce his resignation to take responsibility for a bruising upper house election defeat. Currencies mostly shrugged off news that U.S. President Donald Trump, a vocal critic of Federal Reserve Chair Jerome Powell, will visit the central bank on Thursday, a surprise move that escalates tensions between the administration and the Fed. The dollar index , which measures the greenback against a basket of six currencies including the euro and yen, rose 0.17% to 97.36. In cryptocurrencies, bitcoin rose 1.17% to $119,376.30. Ethereum rose 4.62% to $3,735.62. https://www.reuters.com/world/africa/subdued-dollar-firms-after-ecb-leaves-rates-alone-tariffs-fed-focus-2025-07-24/

2025-07-24 19:10

US policy shift from pressure strategy on Venezuela's oil sector Chevron's and a handful of US licenses revoked this year Some PDVSA partners could be allowed to pay contractors, make imports and swaps Conditions aimed to deny profits to Maduro's govt HOUSTON/WASHINGTON, July 24 (Reuters) - The United States is preparing to grant new authorizations to key partners of Venezuela's state-run PDVSA, starting with Chevron (CVX.N) , opens new tab, to allow them to operate with limitations in the sanctioned OPEC nation and swap oil, five sources close to the matter said on Thursday. If granted, the authorizations to the U.S. oil major, and possibly also to PDVSA's European partners, would mark a policy shift from a pressure strategy Washington adopted this year on Venezuela's energy industry, under U.S. sanctions since 2019. Sign up here. President Donald Trump's administration might now allow the energy companies to pay oilfield contractors and make necessary imports to secure operational continuity. Some imports could be swapped for Venezuelan oil, as authorized in previous licenses, three of the sources said. A senior State Department official said in a statement they could not speak about any specific licenses to PDVSA's partners, but added the United States would not allow President Nicolas Maduro's government to profit from the sale of oil. A source in touch with U.S. and Venezuelan officials said it was difficult to understand how Maduro's government would not benefit from cargoes Chevron can sell to the U.S., and later on Thursday Maduro hailed work done to keep Chevron in the country. "There are already working groups so that Chevron can re-incorporate its functions," Maduro told an interview with Telesur, adding that Chevron's top leadership had already been informed of licenses so it can keep operating in Venezuela. Chevron shares touched $155.93 on Thursday, their highest level since April 3, according to LSEG data. "Chevron conducts its business globally in compliance with laws and regulations applicable to its business, as well as the sanctions frameworks provided for by the U.S. government, including in Venezuela," a company spokesperson said. The move to ease some restrictions on Venezuela’s oil sector follows a prisoner swap this month in which Maduro released 10 American detainees while accepting the return of more than 200 Venezuelans who had been deported from the U.S. and held in an El Salvador prison. Relations between the two countries have been tense for years, and the Trump administration has publicly supported opposition leaders who say their candidate won last year's election, not Maduro. Trump in February announced the cancellation of a handful of energy licenses in Venezuela, including Chevron's, and gave until late May to wind down all transactions. The move left all operations in oil and gas joint ventures with Chevron and other partners in PDVSA's hands, but the companies were authorized to preserve their stakes and output remained almost unchanged. The U.S. State Department, which in May blocked a move by special presidential envoy Richard Grenell to extend the licenses, is this time imposing conditions on any authorization modifications, so that no cash reaches Maduro's coffers, the three sources said. In the past, U.S. officials have promised no money would reach Maduro from oil proceeds despite licenses. But it did because PDVSA demands tax and royalties to be paid before granting exports permits. Even if parties agree to oil swaps, those arrangements save PDVSA, and ultimately Maduro's government, millions of dollars per year in imports. Secretary of State Marco Rubio is not expected this time to ban the authorizations, but is negotiating their scope, they added. It was not immediately clear if the terms of the license that could be granted to Chevron would be reproduced for other foreign companies in Venezuela, including Italy's Eni (ENI.MI) , opens new tab and Spain's Repsol (REP.MC) , opens new tab, which have been asking the U.S. to allow them to swap fuel supplies for Venezuelan oil. The authorizations might remain private, one of the sources said. The U.S. Treasury Department's Office of Foreign Assets Control and PDVSA did not immediately respond to requests for comment. WHERE WILL THE OIL GO? Following the cancellation of Chevron's license earlier this year, Trump announced the imposition of secondary tariffs on buyers of Venezuelan oil. But the measure, expected to severely hit Venezuela's main crude buyer China, has not been enforced, allowing the South American country to divert to Asia crude grades that were previously sold to U.S. and European refiners through PDVSA's joint-venture partners. The reshuffle, which has maintained Venezuela's oil output and exports close to the levels they were at before the license cancellations, has been criticized by politicians in Washington and was discussed as part of talks for the new authorizations, the sources said. During former U.S. President Joe Biden's administration, targeted licenses to PDVSA's partners allowed Western refiners to regain access to Venezuelan supplies, but they also granted a stable source of cash to Maduro's administration as the companies were required by Venezuela to pay royalties and taxes. https://www.reuters.com/business/energy/us-prepares-allow-limited-oil-operations-venezuela-starting-with-chevron-sources-2025-07-24/

2025-07-24 19:00

Summary says EPA will seek to repeal all vehicle, engine emission standards Rescission of scientific finding open for public comment soon California suing US over state rule ending gasoline vehicle sales WASHINGTON, July 24 (Reuters) - The U.S. Environmental Protection Agency plans to repeal all greenhouse gas emission standards for light-duty, medium-duty, and heavy-duty vehicles and engines in the coming days after it removes the scientific finding that justified those rules, according to a summary of the proposal. In a draft of a summary of the forthcoming proposal, seen by Reuters, the agency is expected to say that the Clean Air Act does not authorize the EPA to impose emission standards to address global climate change concerns and will rescind the finding that GHG emissions from new motor vehicles and engines endanger public health or welfare. Sign up here. It is also expected to justify rescinding the endangerment finding by casting doubt on the scientific record used to make the finding. "We further propose, in the alternative, to rescind the Administrator's findings because the EPA unreasonably analyzed the scientific record and because developments cast significant doubt on the reliability of the findings," the summary says. The U.S. Supreme Court, in its landmark Massachusetts v. EPA case in 2007, said the EPA has authority under the Clean Air Act to regulate greenhouse gas emissions and required the agency to make a scientific finding on whether they endanger public health. In 2009, the EPA under former President Barack Obama issued a finding that emissions from new motor vehicles contribute to pollution and endanger public health and welfare. It was upheld in several legal challenges and underpinned subsequent greenhouse gas regulations. The summary also says that one of its rationales for repealing the vehicle standards is that the required technology to reduce emissions would risk greater harms to public health and welfare. Former President Joe Biden's administration said the standards would hike upfront vehicle prices but save consumers money in the long run after accounting for lower fuel costs. The agency is likely to announce the proposal in the coming days, according to a source familiar with the matter who asked not to be named. The EPA said it had sent its proposal to reconsider the endangerment finding to the White House for review on June 30. "The proposal will be published for public notice and comment once it has completed interagency review and been signed by the Administrator," the agency said. The agency did not comment on the tailpipe rules. The rescinding of all vehicle emission standards is the latest - and most extensive - attempt to put a quick end to EPA tailpipe rules that were forecast to cut greenhouse gas emissions by 49% by 2032 over 2026 levels. Some 29% of U.S. greenhouse gas emissions come from the transportation sector, according to EPA data. The EPA forecast that between 35% and 56% of all sales between 2030 and 2032 would be EVs to meet the requirements. The Trump administration has taken a multi-pronged approach to dismantling rules designed to improve vehicle efficiency, reduce fuel use and boost electric vehicles, including ending the $7,500 new EV tax credit and $4,000 used EV tax credit on Sept. 30 and has frozen billions of dollars in EV charging funding for states. Under legislation signed by President Donald Trump earlier this month, automakers face no fines for failures to meet fuel efficiency rules dating back to the 2022 model year. Last year, Chrysler-parent Stellantis paid $190.7 million in civil penalties for failing to meet U.S. fuel economy requirements for 2019 and 2020 after paying nearly $400 million for penalties from 2016 through 2019. GM previously paid $128.2 million in penalties for 2016 and 2017. In June, Trump signed three congressional resolutions barring California's electric vehicle sales mandates and diesel engine rules. Trump approved a resolution to bar California's landmark plan to end the sale of gasoline-only vehicles by 2035, which has been adopted by 11 other states and representing a third of the U.S. auto market. California has filed suit to overturn the repeal. https://www.reuters.com/legal/government/trump-epa-aims-repeal-vehicle-emission-rules-after-revoking-greenhouse-gas-2025-07-24/

2025-07-24 18:56

SAO PAULO, July 24 (Reuters) - Brazil's biggest conilon coffee cooperative, Cooabriel, is launching a cocoa pilot project in the country's Bahia state slated for September in collaboration with commodities powerhouse Cargill, it said in an interview this week. Cooabriel hopes the pilot, located in the south of Bahia, will produce around 10,000 60-kilogram bags of cocoa beans, working with farmers who are already producing conilon coffee, part of the same family as Robusta beans. Sign up here. The pilot project is another example of efforts in Brazil, once the world's second-biggest cocoa producer, to rebuild the country's standing in the global industry after its output was devastated by disease in the 1980s. "It's still somewhat of a timid project, but it is a promising project," Cooabriel's President Luiz Carlos Bastianello told Reuters in an interview. The majority of Cooabriel's coffee producers in Bahia are already producing cocoa and the cooperative wants to help them boost their productivity, while also possibly picking up some new farmers along the way, Bastianello said. Cargill is supporting the pilot project, which is financed by Cooabriel, as part of its aim to see major chocolate consumer Brazil become self-sufficient in cocoa production, Cargill's director of cocoa origination, Murilo da Silva Severo, said in an email. "This partnership with Cooabriel has the potential to bring Cargill an annual increase of 1,500 (metric) tons of beans," Severo said, adding the quantity could increase and Cargill has already suggested Cooabriel take the project to the neighboring state of Espirito Santo. Though similarities exist between conilon coffee farming and cocoa production, Cooabriel will have to contend with some challenges around market volatility and storing the cocoa beans, the cooperative's manager of new businesses, Alexandre Costa Ferreira, said. "If we work on this correctly, we have everything we need to gain a lot of volume, a lot of scale, and put Brazil on a different level," Ferreira said. https://www.reuters.com/world/americas/brazils-biggest-conilon-coffee-cooperative-launch-cocoa-pilot-project-bahia-2025-07-24/