2025-07-10 20:45
RIO DE JANEIRO, July 10 (Reuters) - Brazil has logistical and commercial flexibility to preserve the competitiveness of its oil on the international market if the 50% tariff announced by U.S. President Donald Trump on Wednesday comes into effect on August 1, experts told Reuters. Oil is the main product on Brazil's export list to the U.S. and until now was exempt from the 10% tariff applied this year to Brazilian exports, but it is unclear whether that will remain the case with the new 50% tariffs. Sign up here. "These tariffs may generate short-term noise in trade flows and impact margins on spot contracts, but do not represent a structural risk," said BTG Pactual analysts Luiz Carvalho and Gustavo Cunha, in a report to clients. The Brazilian Petroleum Institute (IBP), that represents state-run oil firm Petrobras (PETR4.SA) , opens new tab and oil majors operating in Brazil, such as Shell (SHEL.L) , opens new tab, TotalEnergies (TTEF.PA) , opens new tab and Equinor (EQNR.OL) , opens new tab, said in a statement on Thursday that it views Trump's measure "with concern", and urged Brazil's government to act diplomatically. IBP had no information on whether the previously valid tariff exemption for oil would remain so after the announcement. In 2024, Brazil exported a total of 1.78 million barrels per day (bpd), of which 243,000 bpd were destined for the U.S., according to government data compiled by consultancy StoneX. Petrobras, Brazil's main producer, will not be significantly impacted by the tariffs, BTG analysts said. In the first quarter of the year, only 4% of its exports went to the U.S., according to company data. In terms of oil products, Petrobras' share of exports to the U.S. was 37% of a total of 209,000 bpd, or around 77,000 bpd. "Although the U.S. has a considerable share of derivatives exports, when we look in absolute terms, we believe that this is a small volume and that Petrobras should be able to redirect this export flow to another country with ease," said the BTG analysts. In a statement, Petrobras said that it is assessing the impact of the tariff announced the day before and maintains its strategy of always seeking "the best alternative for the company in any scenario". On Thursday, Petrobras' preferred shares were trading close to flat. https://www.reuters.com/business/energy/brazilian-oil-could-find-new-destinations-face-trumps-tariffs-2025-07-10/
2025-07-10 20:32
Brazil stocks slip, dragged by banks; financial ADRs slide Real rebounds after initial slump to five-week low Tariffs could hurt US consumers of coffee, orange juice LONDON/NEW YORK, July 10 (Reuters) - Brazil's stock market was dragged lower by its financial sector on Thursday while the real currency rebounded, a day after U.S. President Donald Trump's shock move to slap 50% tariffs on imports from Latin America's largest economy, citing political disagreements. Currency volatility gauges were at their highest since the back-end of April's tariff announcements after the real slumped as much as 2.8% on Wednesday in reaction to what Deutsche Bank described as an escalation of tensions. The currency ended down 2.3% Wednesday but bounced on Thursday and was up 0.5% on the day at 5.544 after earlier touching a five-week low of 5.6277 per greenback. Sign up here. U.S.-listed shares of Brazilian companies fell, with a widely followed Brazil ETF down 1.6%. Itau Unibanco fell 4.2%, Banco Santander Brasil was down 3.2% and Nu Holdings dropped 4.5%, while state oil firm Petrobras lost 0.4% and Embraer fell 4.7%. The main local stock market index (.BVSP) , opens new tab shed 0.5%. Brazil's 10-year local benchmark note yield had been steadily rising since hitting a 2025 low of 13.45% last week, and on Thursday jumped 13 basis points to 13.892%. "Although U.S. unilateral tariffs on Brazil are not entirely irrelevant, their macroeconomic impact would be modest," said local investment manager ARX Investimentos in a client note. " When combined with a coordinated economic policy response, Brazil is well positioned to neutralize adverse effects and preserve economic stability, even in a scenario of rising global trade protectionism." Brazil's bonds have been a strong performer in emerging markets this year, with international dollar-denominated bonds returning nearly 8% and local currency ones a whopping 20%. The local stock market hit a record high this month, yet is still among the cheapest in terms of dollars paid for expected earnings. MSCI's dollar-denominated Brazil stock index is up nearly 25%, too, helped by the year's double-digit surge in the real. Graham Stock at RBC BlueBay Asset Management said Trump's reasoning for the 50% tariff level had centred on his grievances around a court case against right-wing former Brazilian president Jair Bolsonaro, as well as legal moves against U.S. social media firms. "The economic implications are nevertheless fairly modest," Stock said, as just over 10% of Brazil's exports go to the U.S., and were worth only around 1% of the South American country's GDP. "The risk is that President Lula seeks to exploit his defiance of U.S. interference as a badge of honour in the run-up to the October 2026 elections, in which case de-escalation becomes less likely," he said. Brazil is a closed economy that has a trade deficit with the U.S., where consumers face sharp price rises on food staples like coffee and orange juice if the 50% tariffs stick, according to traders and experts. Around a third of the coffee consumed in the U.S., the world's largest drinker of the beverage, comes from Brazil and more than half of all the orange juice sold in the U.S. also comes from the South American agricultural powerhouse. Wednesday's decision by Trump followed a threat on Monday to impose an additional 10% tariff on the BRICS group of developing nations - of which Brazil is the 'B' - which he called "anti-American." https://www.reuters.com/world/americas/brazils-markets-face-testing-time-after-trump-tariff-blow-2025-07-10/
2025-07-10 20:32
Thousands of searchers comb Texas Hill Country for survivors Floods claim at least 120 victims, including dozens of children Officials face questions about early warnings KERRVILLE, Texas, July 10 (Reuters) - Six days after flash floods swept through parts of Texas Hill Country , opens new tab and killed at least 120, authorities say there are still more than 160 people unaccounted for, as thousands of searchers combed through piles of mud-covered debris for survivors on Thursday. But that figure may not reflect the true number of missing people, according to disaster response experts. Sign up here. The number of people reported missing in the aftermath of a natural disaster often turns out to be far greater than the eventual death toll. Worried members of the public, unable to reach a relative or friend, report the name to local authorities and to crowd-sourced online databases, and it gets added to a list that can grow distressingly long. In the first days after the devastating wildfire in the California mountain town of Paradise in 2018, the number of people missing briefly exceeded 1,200. It took two weeks for local officials to recover all the victims, and many months more for them to account for every person reported missing. In total, the fire killed 85 people, still the deadliest wildfire in the state's history. More than two weeks after a wildfire destroyed Lahaina on the Hawaiian island of Maui in 2023, the FBI said there were still more than 1,000 names on its list of the missing. The following summer, officials put the final death toll at 102. Josh Dozor, a former deputy assistant administrator at the Federal Emergency Management Agency and now an executive at the disaster response company International SOS, said the list of missing people could still change significantly. "There could be people listed as missing who don't even know they're on the list," he said. "There are power issues, someone might not have a cell phone charged. People are at shelters. It could take time to reassemble with loved ones." Kerr County, home to the vast majority of victims and missing people, is a sprawling, rural county with areas that have spotty cell phone service. More than 2,100 first responders were continuing a painstaking, mile-by-mile search across the country, hoping against long odds to find survivors six days after torrential rains sent a wall of water raging down the Guadalupe River in the predawn hours of July 4. Authorities have not found anyone alive since the day of the floods. At least 96 people, including 36 children, died in Kerr County, officials said at a briefing on Thursday morning. The death toll includes 27 campers and staff members from Camp Mystic, an all-girls Christian summer retreat on the banks of the river. Five girls and one counselor from the camp remain missing, officials said. "The length of time to find someone still alive after a summertime flash flood is a lot longer than, say, a winter storm or an earthquake, but the chances here are diminishing," Dozor said on Thursday. 'FLASH FLOOD ALLEY' Kerr County sits at the heart of what is known as Flash Flood Alley in central Texas, a region where some of the country's deadliest floods have occurred. More than a foot of rain fell in less than an hour early on July 4. Flood gauges showed the river's height rose from about a foot to 34 feet (10.4 meters) in a matter of hours, cascading over the river's banks and sweeping away trees and structures in its path. Hundreds of community members gathered at a worship service at Tivy High School in Kerrville on Wednesday to remember the victims. Students and adults prayed and sang, with some hugging and holding back their tears during the memorial. The school's soccer coach, Reece Zunker, and his wife, Paula, a former teacher there, were among the victims. Their two children were missing as of Sunday, according to the school district. "Zunker was a really tough guy," said art teacher Marti Garcia, who attended Wednesday's event. "I just had faith that he was going to pull it out." Authorities in Kerr County have faced questions about whether more could have been done in the early hours of July 4 to alert residents about the rising floodwaters and get some of them to higher ground. The state legislature will convene in a special session later this month to investigate the flooding and provide disaster-relief funding. Meanwhile, New Mexico Governor Michelle Lujan Grisham told reporters on Thursday that after talks with Homeland Security Secretary Kristi Noem, federal authorities had pledged $15 million in disaster relief for the mountain village of Ruidoso, where flash flooding on Tuesday killed three people, including two children, and damaged hundreds of homes. Some $12 million of the federal disaster funding is money previously pledged, but never paid, to build levees to protect the community from flash floods after wildfires last year, Lujan Grisham said. https://www.reuters.com/sustainability/climate-energy/thousands-first-responders-search-texas-survivors-against-long-odds-2025-07-10/
2025-07-10 20:24
Tesla needs to apply for driverless testing, deployment permits in California Company seeks to test robotaxis in Phoenix Robotaxi growth key for Tesla as EV sales slump July 10 (Reuters) - Tesla (TSLA.O) , opens new tab has yet to apply for regulatory permits it needs to operate driverless taxis in California, two state regulators said on Thursday, a day after CEO Elon Musk said the company would expand its robotaxis to the San Francisco Bay Area within two months. "To date, Tesla has not applied for either a driverless testing or deployment permit," a spokesperson for California's Department of Motor Vehicles said in an email to Reuters on Thursday. Sign up here. The California Public Utilities Commission (CPUC), which in March issued the first in a series of permits Tesla requires, said on Thursday the company had not yet applied for any new permits. All it has so far is a transportation charter-party carrier permit (TCP) typically associated with chauffeur-operated services, which allows Tesla to own and control a fleet of vehicles and transport employees on pre-arranged trips. The successful expansion of robotaxis will be crucial to Tesla's future as sales of its aging lineup of electric vehicles have slumped with rising competition and a backlash against Musk's embrace of far-right political views. Much of the company's trillion-dollar valuation hangs on Musk's bet on robotaxis and humanoid robots that are powered by artificial intelligence. Tesla reached out to Arizona late last month to start a certification process for an autonomous vehicle ride-sharing service, and a decision is expected by the end of this month, the state's transportation department said on Thursday. "They have expressed interest in operating within the Phoenix Metro area," Arizona's Department of Transportation said in an email to Reuters. Tesla has applied to test and operate both with and without a driver, it said. Tesla shares, down 23% this year, closed up nearly 5% on Thursday. Tesla did not respond to requests for comment. Tesla last month rolled out a small test of its robotaxi service in a limited area of Austin, Texas, with about a dozen vehicles, a select group of passengers and many restrictions, including a safety monitor in the front passenger seat. Even as social media videos showed multiple traffic problems and driving issues over the first few days, CEO Elon Musk said in response to a post on his social media platform X on Wednesday that Tesla would expand the service to a larger area in the city this weekend. When another user on X asked about an expansion to the Bay Area, Musk replied, "Waiting on regulatory approvals, but probably in a month or two." While Tesla faced almost no regulation in Texas, California tightly controls where and how firms can operate autonomous vehicles and requires testing data for permits. The California regulators Reuters contacted did not say how long it would take to review a permit application. https://www.reuters.com/business/autos-transportation/tesla-has-applied-arizona-robotaxi-service-certification-state-transport-2025-07-10/
2025-07-10 20:06
DAKAR/TORONTO, July 10 (Reuters) - A Malian military helicopter airlifted gold from the Barrick-owned Loulo-Gounkoto complex on Thursday, three sources said, days after Reuters reported that a court-appointed administrator planned to sell the site's bullion to finance operations. A Bamako court last month appointed a provisional administrator to restart operations at the West African country's largest gold mining site, nearly six months after Barrick Mining (ABX.TO) , opens new tab suspended them amid tense negotiations over the implementation of a new mining code. Sign up here. Barrick said it was forced to suspend operations in mid-January after Mali's military-led government blocked its exports for two months, detained some of its executives and seized three tons of bullion. It also launched arbitration at the World Bank to try to resolve the dispute. On Thursday morning, a brown and green helicopter touched down at the site's tree-lined landing strip. Its passengers were escorted by the mine's security team to the plant, where the gold room is located, the first source said. The helicopter took off some five hours later with the bullion on board. "Any plan by the provisional administrator to restart operations or sell gold from the site would be not only illegitimate but also ill-advised," Barrick said in a statement on Thursday. One ton of gold - worth about $107 million - had remained in the site's storeroom since January, when three tons of gold were removed to be stored in a bank vault on the orders of a Malian judge, the first source said. The full ton was taken on Thursday, the second source said. The provisional administrator, former health minister Soumana Makadji, has said he plans to finance the mine's operations by selling gold, the first and third sources and a fourth person said. The first three sources said the airlifted gold would be sold for this purpose. While drilling and other extractive activities have not yet begun, operations at the site's plant - which processes ore stocks into gold - restarted on Monday, the third and fourth sources and another person said. According to internal estimates seen by Reuters, it will take between 11 and 13 days from the restart of the plant to the production of the first gold bars. Spokespeople for Mali's mines ministry did not immediately respond to requests for comment. Makadji could not be reached for comment. Barrick and Mali's government have been in negotiations since 2023 over the implementation of a new mining code that raises taxes and gives the government a greater share in the gold mines. https://www.reuters.com/world/africa/mali-military-helicopter-airlifts-gold-barrick-owned-loulo-gounkoto-2025-07-10/
2025-07-10 18:41
Majority of bank's board open to gradual rate cuts Most governors see favorable medium-term inflation determinants Headline inflation eased in June but remains above target Dissenting governor Heath calls for prudence MEXICO CITY, July 10 (Reuters) - Most of the Bank of Mexico's governing board supports smaller cuts to the key interest rate, minutes from June's rate decision showed on Thursday, signaling a more cautious approach as Mexico grapples with stubborn inflation and sluggish growth. All four board members who backed June's 50-basis-point cut — the fourth in a row — signaled openness to a slower pace going forward. At least two said the June move should be the last of that size. Sign up here. Annual headline inflation accelerated in May beyond the central bank's target range of 3%, plus or minus one percentage point. While it eased in June to 4.32% after four months of increases, it remains above target. Crucially, the core inflation index, a key gauge that strips out volatile prices, accelerated to 4.24% – its highest level since April 2024. For the board's majority, "the central argument is that the weakness in the economy will create slack conditions that would allow inflation to converge toward the 3.0% target," analysts from Actinver said. One of those governors noted the bank's current monetary policy stance "is appropriate to address risks to inflation on both sides of the balance," adding that "going forward, a more gradual approach will be adopted during the rate-cutting cycle." Another suggested that "adjustments of lesser magnitude" could be considered given the inflation outlook. Banxico, as Mexico's central bank is known, has cut its benchmark interest rate by 325 basis points since early 2024 and by 200 points this year alone, as inflation has eased from its 2022 highs. Alberto Ramos, head of Latin America economic research at Goldman Sachs, said the balance of views on the board "remains dovish though more cautious," lowering the baseline for the board's next decision, in August, "to a cut of no more than 25 basis points." Deputy Governor Jonathan Heath, who cast the sole vote at the June meeting to hold the rate at its previous level of 8.50%, called for prudence while making his dissent argument. Heath said the expectation that inflation would naturally become low due to "greater slack conditions" is "unrealistic" because even though there is economic stagnation, current forecasts do not point to a deep enough recession that would sufficiently weaken aggregate demand. Analysts polled by the central bank in the second half of June forecast the Mexican economy growing just 0.2% this year. The central bank's latest forecast, in late May, estimated growth at 0.1% for 2025. https://www.reuters.com/world/americas/mexico-central-bank-board-signals-smaller-rate-cuts-amid-sticky-inflation-weak-2025-07-10/
