2025-07-09 18:31
MEXICO CITY, July 9 (Reuters) - The U.S. Treasury said on Wednesday it had extended a deadline to September 4 for a prohibition on certain transactions involving three Mexican financial institutions hit by sanctions last month over alleged money laundering linked to fentanyl trafficking. The actions apply to Mexico's CiBanco, Intercam Banco and Vector Casa de Bolsa, which the Treasury said were identified as "primary money laundering concerns." Sign up here. "This decision is the result of dialogue and collaboration between the Mexican government and U.S. financial authorities," Mexico's finance ministry said in a statement following the announcement. Mexico had previously balked at the sanctions, arguing that they were unilaterally applied by the U.S. without providing Mexico with any evidence to back up the money laundering claims. Since the sanctions were announced, Mexico temporarily took over the three financial firms to protect creditors and depositors. https://www.reuters.com/business/finance/us-extends-deadline-fentanyl-sanctions-three-mexican-financial-institutions-2025-07-09/
2025-07-09 15:58
WASHINGTON, July 9 (Reuters) - U.S. President Donald Trump on Wednesday called on the Federal Reserve to lower the federal benchmark interest rate by at least 3 percentage points, renewing his call for the U.S. central bank to lower rates to help reduce the cost to service the nation's debt. "Our Fed Rate is AT LEAST 3 Points too high. “Too Late” is costing the U.S. 360 Billion Dollars a Point, PER YEAR, in refinancing costs. No Inflation, COMPANIES POURING INTO AMERICA. “The hottest Country in the World!” LOWER THE RATE!!!" Trump wrote on Truth Social. Sign up here. https://www.reuters.com/world/us/trump-says-us-interest-rate-is-least-3-points-too-high-2025-07-09/
2025-07-09 15:42
LONDON, July 9 (Reuters) - The U.S. dollar's share of global currency reserves reported to the International Monetary Fund nudged lower to 57.7% in the first quarter of 2025 while the share of euro-denominated reserves gained, International Monetary Fund data showed. Shares of global currency reserves held in the greenback stood at 57.8% at the end of 2024, while the share of euros gained from 19.8% to 20.1% - their highest since late 2022, according to the IMF's Currency Composition of Official Foreign Exchange Reserves (COFER) data released on Wednesday. Sign up here. But it was the Swiss franc which saw the most dramatic increase, quadrupling its share to 0.8% of reserves by end-March - the highest level since at least 1999 when the euro was introduced - while the share of pound sterling also rose. Foreign currency markets have seen some dramatic swings since the start of the year. The dollar lost nearly 4% in the first quarter of the year as some big policy swings from the administration under U.S. President Donald Trump, especially on trade, security and the economy, roiled market confidence in the world's foremost reserve currency. The decline accelerated dramatically in the second quarter, when the dollar dropped more than 7% in the wake of Trump's introduction of sweeping tariffs on "Liberation Day" in early April - though some of those measures have been put on hold. On the flip side, the Swiss franc - widely seen as a safe haven currency - has become one of the best performing currencies this year, strengthening 14% against the dollar. While currency swings do not equate to reserve managers' willingness to hold them, the latest events have fuelled a debate on whether the U.S. dollar could be in danger of losing its status as the world's reserve currency of choice and the center point of the global monetary system. While some point to nascent signs of de-dollarisation, there is broad agreement that any such shift would be very slow. Looking at levels in claims, U.S. dollar claims did rise 1.4% quarter-on-quarter to $6.72 trillion, though that gain was outpaced by the euro's 2.6% rise to claims of $2.3 trillion, IMF data showed. https://www.reuters.com/business/dollar-cedes-ground-euro-swiss-franc-shines-global-reserves-imf-data-shows-2025-07-09/
2025-07-09 15:15
MEXICO CITY, July 9 (Reuters) - Mexico's annual inflation rate eased in June after rising for four straight months, though core prices kept climbing, fueling expectations the central bank could slow the pace of interest rate cuts, official data showed on Wednesday. Consumer prices in Mexico rose 4.32% in the year through June, according to national statistics agency INEGI, roughly in line with the 4.31% expected by economists in a Reuters poll and slowing from the 4.42% reported in the previous month. Sign up here. Mexico's central bank, also known as Banxico, has an inflation target of 3%, plus or minus one percentage point. In contrast, 12-month core inflation, often seen as a better gauge of price trends because it strips out highly volatile food and energy prices, accelerated to 4.24% from 4.06% in May, hitting its highest level since April of last year. The core inflationary pressures have stirred uncertainty regarding Banxico's future decisions on borrowing costs in Latin America's second-largest economy. "Core inflation remains sticky, with persistent upward pressure from housing, food services and a seasonal jump in airfares, likely keeping some Banxico board members uneasy," said Andres Abadia, chief Latin America economist at Pantheon Macroeconomics. The Bank of Mexico lowered its benchmark rate by 50 basis points last month, though the decision by the central bank's five-member governing board was not unanimous. In its decision, the bank's board of governors adjusted its forward guidance, dropping previous references to further 50 basis point cuts. Instead, it said it would continue to assess "additional cuts". Deputy Governor Jonathan Heath voted to hold the rate last month after previously calling for a more cautious approach until inflation shows a more sustained downward trajectory. July's inflation is expected to come in under 4%, meeting the upper end of the central bank's target range, Actinver analysts said in a note after Wednesday's inflation report. "We anticipate that the Mexican central bank could cut its benchmark rate on two more occasions this year. We project that these cuts will occur in August and September, both cuts of 25 basis points," they added. In June alone, headline consumer prices were up 0.28%, according to INEGI, while the closely watched core index stood at 0.39%, both in line with market forecasts. https://www.reuters.com/world/americas/mexicos-annual-inflation-eases-june-core-rate-climbs-2025-07-09/
2025-07-09 14:11
July 9 (Reuters) - Merck (MRK.N) , opens new tab will buy UK-based Verona Pharma for about $10 billion, the companies said on Wednesday, strengthening the U.S. firm's presence in respiratory treatments as it readies for the patent expiry of its blockbuster cancer drug. Sign up here. https://www.reuters.com/legal/transactional/merck-acquire-verona-pharma-10-billion-2025-07-09/
2025-07-09 12:43
ACCRA, July 9 (Reuters) - Italian energy group Eni (ENI.MI) , opens new tab will temporarily suspend operations at a gas plant in Ghana on Sunday to implement a supply increase, likely resulting in power cuts, the West African country said on Wednesday. Ghana, the world's second biggest cocoa producer, has been trying to ramp up oil and gas production to increase revenues and prevent fossil fuels from becoming stranded. Sign up here. It has reached a deal with Eni to increase natural gas supply by 30 million standard cubic feet per day to 270 million, the energy ministry said in a statement on X on Wednesday. To facilitate the upgrade, Eni will temporarily halt some operations, resulting in "an impact on the availability of gas for power generation," the statement said. Speaking at an event on Monday in the southern city of Kumasi, Energy Minister John Jinapor said Ghana was "likely to experience some interactions or interruption of power" while the plant was offline. "Once the work is done, we shall stabilise supply of gas, increase gas production and that will improve the delivery of power," he said. Eni's Offshore Cape Three Points project off Ghana's Atlantic Coast meets 65% of the country's energy demand, according to the Italian company's website. Last week, Tullow Oil (TLW.L) , opens new tab said in a statement it was planning to increase the supply of gas from its Jubilee and TEN projects to about 130 million standard cubic feet per day. https://www.reuters.com/business/energy/ghana-reaches-deal-with-eni-increase-gas-supply-energy-ministry-says-2025-07-09/
