2026-01-21 06:21
Jan 21(Reuters) - Barry Callebaut (BARN.S) , opens new tab on Wednesday said it would appoint former Unilever (ULVR.L) , opens new tab boss Hein Schumacher as its chief executive and reported first quarter results showing it sold less of its cocoa products than expected. The company said its current CEO Peter Feld would leave his role on January 26 "to pursue other career opportunities". Sign up here. One of the world's top cocoa processors, which supplies chocolate for Magnum (MICCT.AS) , opens new tab ice creams and Nestle's (NESN.S) , opens new tab KitKat bars, said its sales volumes fell 9.9% to 509,401 tonnes in its first quarter that runs from September to November. Analysts were expecting 512,000 tonnes on average in a company-provided poll. It also confirmed its outlook for the current financial year. INDUSTRY RELATIONSHIPS The change of leadership at the Swiss cocoa processor is the latest of several at the top of leading consumer companies over the last 18 months. "The appointment of Hein Schumacher lands like a small bombshell," Vontobel's analysts say. The incoming chief executive Schumacher, a Dutch national ousted by Unilever in February 2025, will benefit from already having deep industry relationships with Barry's key customers, they added. Feld began his role as CEO in April 2023 and has steered the company through high cocoa prices, to which Barry is more exposed than consumer-facing firms, and a subsequent fall in demand. The latest Q4 data on cocoa grind, a proxy for chocolate demand, showed a slump in Asia and fell 8.3% year on year in Europe, which represents roughly two-fifths of Barry's revenue. Barry buys cocoa beans that it processes into cocoa butter and powder. Manufacturers then use its product to produce chocolate and candy which is sold to consumers directly. After three cuts to the company's volume guidance last year, in November it guided for a mid single-digit percentage decline in sales of cocoa products in 2025/26. https://www.reuters.com/business/barry-callebauts-q1-sales-volume-falls-more-than-expected-2026-01-21/
2026-01-21 06:15
Trump withdraws planned tariffs U.S. has reached agreement on framework of future Greenland deal, Trump says Yen on the ropes with investors worried over fiscal policy Jan 21 (Reuters) - The dollar moved sharply higher against the euro and the Swiss franc on Wednesday as U.S. President Trump withdrew a threat to impose tariffs on a number of nations, saying he had reached an agreement on a framework of a future deal on Greenland with NATO. Trump's threats to levy tariffs on a number of nations for their stance on Greenland spooked markets and triggered a broad selloff in U.S. assets, but his comments in Davos on Wednesday that he had he ruled out military action in the northern island offered investors some relief. Sign up here. The euro was down 0.36% at $1.17 , having risen more than 1% in the last two sessions. It hit $1.168 on Tuesday, its highest level since Dec 30. The safe-haven Swiss franc was down 0.77% to 0.7958 per dollar, after gaining about 1.5% between Monday and Tuesday. Trump vowed on Saturday to implement a wave of increasing tariffs from Feb 1 on European Union members Denmark, Sweden, France, Germany, the Netherlands and Finland, along with Britain and Norway, until the U.S. is allowed to buy Greenland, a step major EU states decried as blackmail. Trump did not offer any details in a post to Truth Social on what the framework for a future deal with NATO would entail, but said as a result that he would not impose the tariffs. The comments sparked a stock market rally, with the S&P 500 (.SPX) , opens new tab index up over 1.5%. "We're seeing a bit of a relief rally in markets," said Matt Weller, global head of market research at StoneX. "I really do think the details perhaps are not as relevant, even perhaps if they never come to light. The near-term crisis appears to be behind us, and we'll wait to see what crops up next to drive sentiment." Still, European Union leaders are set to proceed with an emergency summit on Thursday to discuss options following Trump's tariff threat, a council spokesperson said on Wednesday. YEN ON THE ROPES, INTERVENTION TERRITORY IN FOCUS The dollar was up against the Japanese currency, which faced its own selloff after Prime Minister Sanae Takaichi on Monday called snap elections for Feb 8 and pledged measures to loosen fiscal policy. The yen was last down against the dollar at 158.430. Investors closely watched Japanese government bonds (JGBs) which were hit hard early this week, but rebounded on Wednesday. "The absence of strategic buyers in this segment has made price action more sensitive and amplified volatility. I expect this environment of elevated volatility to persist through 2026," said Vincent Chung, co-portfolio manager at T. Rowe Price. "A further sell-off in JGBs would seem to drag the dollar/yen towards intervention territory at 159/160," said Chris Turner, global head of markets at ING. "However, if the yen sell-off is a self-inflicted wound from the Japanese government policy, the effectiveness of intervention will become increasingly questionable." https://www.reuters.com/world/asia-pacific/dollar-down-sell-america-trade-revives-yen-slumps-japan-fiscal-worries-2026-01-21/
2026-01-21 06:04
Permits for 28 companies stripped for environmental violations Deforestation linked to deadly Sumatra floods Environmentalists say firms should be forced to restore forest JAKARTA, Jan 21 (Reuters) - A China-backed hydropower plant and a gold mining unit run by conglomerate Astra International were among the 28 firms that had their permits revoked by the Indonesian government following accusations of environmental breaches that worsened last year's floods. The cyclone-induced floods and landslides on the island of Sumatra in late November killed 1,200 people, destroyed homes and displaced over a million residents. Environmental experts said the devastation was worsened by rampant deforestation to make way for mines and plantations. Sign up here. President Prabowo Subianto on Tuesday revoked the permits of 28 firms involved in forestry, oil palm and cocoa as well as power generation and mining. They included PT North Sumatra Hydro Energy (NSHE), PT Agincourt Resources and PT Toba Pulp Lestari (INRU.JK) , opens new tab. HYDRO PLANT ACCUSED OF ECOLOGICAL DAMAGE NSHE, responsible for the Batangtoru hydropower plant, is controlled by China's SDIC Power Holdings Co. Ltd, according to Indonesia's state utility firm. The project, currently under construction by PowerChina, has long been on the radar of environmental activists, with many calling for it to be stopped because of the ecological destruction it has wrought on the biodiverse island. Prior to the floods, the power project, which will have a total installed capacity of 510 megawatts, was expected to be fully operational by the end of this year. SDIC Power did not immediately respond to a Reuters' email seeking comment. NSHE said it is formulating answers to Reuters' queries. PowerChina could not immediately be reached for comment. On Monday, Huang He, China's consulate general in North Sumatra, told local media that the construction of the Batangtoru plant was compliant with Indonesian laws, adding that he hoped the company's activities could be resumed. FIRMS SEEKING CLARITY Pulp maker Toba Pulp on Wednesday said it was seeking clarification from the government while it assesses the potential impact on its business. "This government statement has the potential to impact timber harvesting, the primary raw material for the company's production," it said in an exchange filing. Astra International's Agincourt, which operates the Martabe gold and silver mine, declined to comment on the revocation as it has not received any official notice from the government, adding it will respect the government's decision while maintaining the company's legal rights. Previously, Agincourt said that attempts to link its operations to the disaster last November were "premature". It was not immediately clear what the revocation of the permits would mean for the future of the projects. GOVERNMENT DECISION IS 'FINAL' The government's decision is "final", but companies can discuss with related government agencies about the future of their assets, said Barita Simanjuntak, spokesperson for Indonesia's military-backed forestry task force which investigates the companies. "What the companies did is very serious, it has a correlated impact that worsened the disasters," Barita said, adding that some companies were found to have operated outside their concessions, while some had encroached on river banks that should have remained untouched. Environmental group WALHI has called on the government to make sure the companies rehabilitate the degraded forests, said director executive Boy Jerry Sembiring, adding that the assets should not be transferred to other owners. From 2001 to 2024, Sumatra has lost 4.4 million hectares (11 million acres) of forest, an area bigger than Switzerland, according to David Gaveau, the founder of deforestation monitor Nusantara Atlas. Striking images of hundreds of logs washed downstream by flood waters last year caused uproar amongst locals and Indoensians from across the archipelago. https://www.reuters.com/sustainability/climate-energy/china-backed-power-plant-astra-gold-mine-lose-permits-indonesian-environmental-2026-01-21/
2026-01-21 05:55
TOKYO, Jan 21 (Reuters) - The chief of Japan's largest trade union umbrella group Rengo on Wednesday pressed the government to steer economic policy toward stabilising foreign exchange rates, saying that the weak yen is accelerating inflation through higher import costs. The yen has sank against major currencies due to concern over Japanese Prime Minister Sanae Takaichi's dovish fiscal policy. It hit an 18-month low of 159.45 per U.S. dollar this month, its weakest since Japan last intervened in support the currency in July 2024. Sign up here. "We believe that the yen's current depreciation is fuelling inflation through (higher) import costs," Tomoko Yoshino, the chief of Rengo, said in a group interview. "We'd like to call on the government to conduct macroeconomic management that stabilises prices and exchange rates," she said, noting that prices continue to run above the 2% inflation target set by the government and the Bank of Japan. Rengo, a 7 million member-strong union umbrella group, has set a target of 5% or more for the 2026 spring pay talks, which typically conclude in mid-March. Last year, Rengo member unions secured an average wage hike of 5.25%, the biggest in 34 years. https://www.reuters.com/sustainability/sustainable-finance-reporting/japans-top-labour-union-group-urges-government-stabilise-forex-2026-01-21/
2026-01-21 05:40
Lee says U.S. tariffs on chips could raise U.S. prices South Korea's record exports driven by semiconductor demand Lee seeks diplomatic efforts for U.S.-North Korea dialogue SEOUL, Jan 21 (Reuters) - South Korean President Lee Jae Myung said on Wednesday if Washington introduced higher U.S. tariffs on semiconductor imports, it would likely boost U.S. prices, playing down concerns about the proposed duty. U.S. Commerce Secretary Howard Lutnick has said that South Korean and Taiwanese chipmakers may face tariffs of up to 100% unless they commit to increased production on American soil. Sign up here. Lee said that given South Korean and Taiwanese chipmakers' dominance of the market, a 100% U.S. import duty would likely sharply raise prices for chip products in the United States. "They have a monopoly of 80 to 90% ... so most of it is likely to be passed on to U.S. prices," Lee told a news conference. South Korea's Samsung Electronics (005930.KS) , opens new tab and SK Hynix (000660.KS) , opens new tab, and Taiwanese chipmaker TSMC (2330.TW) , opens new tab, dominate the global market in memory chips and chip contract manufacturing, respectively. South Korea already has safeguards in place under a trade agreement with the U.S. to ensure its chipmakers would not be left at a disadvantage to Taiwanese or any other global competitors, Lee said. South Korea’s exports rose to a record $709.4 billion in 2025, up 3.8% from a year earlier, as semiconductor shipments jumped 22% on strong demand for artificial intelligence investments. Chip exports to the U.S. accounted for 8% of the total $173.4 billion semiconductor exports, while China remained the biggest market, followed by Taiwan and Vietnam. SLUMPING WON CURRENCY Lee also touched on the slumping won in his remarks, citing expectations by South Korean authorities that the currency would strengthen to around the 1,400 per dollar level in a month or two. The president cautioned domestic policies alone would not be sufficient to stabilise foreign exchange markets as it was somewhat correlated with weakness in the Japanese yen , adding that the won was faring comparably better. Lee also said the domestic stock market (.KS11) , opens new tab, which was the world's best performer last year with a 76% jump, was still undervalued. NORTH KOREA TALKS Lee said he was pursuing diplomatic efforts to enable North Korea and the U.S. to resume dialogue and that a pragmatic approach was needed to deal with Pyongyang. "There is a benefit to making the North stop making nuclear materials and not export nukes and stop developing ICBMs," he said, referring to intercontinental ballistic missiles, adding it would be hard to imagine the North would actually give up its nuclear weapons programme. He said North Korea was producing enough nuclear material to make 10 to 20 nuclear weapons a year. North Korea has so far snubbed outreach by Lee and U.S. President Donald Trump to resume dialogue. The talks have stalled since Trump met the North's leader Kim Jong Un in 2019, amid disagreement over lifting sanctions against Pyongyang and nuclear dismantlement. RELIGION IN POLITICS Lee also underscored a need to root out religious influence in politics. "The principle of separation of church and state should never be broken. And it must be punished strictly," Lee said. South Korea's parliament is currently reviewing a bill on setting up a special prosecutor to investigate the Unification Church's involvement in politics, and is debating whether to include in the probe the Shincheonji Church of Jesus, founded and headed by self-proclaimed messiah Lee Man-hee. Han Hak-ja, the head of the Unification Church, now known as the Family Federation for World Peace and Unification, is on trial for allegedly seeking to bribe the wife of former President Yoon Suk Yeol and another close confidante. Han has denied wrongdoing. https://www.reuters.com/world/asia-pacific/south-koreas-lee-plays-down-proposed-us-chip-tariffs-warns-higher-prices-2026-01-21/
2026-01-21 05:32
Wall Street's verdict on Trump's Greenland move is in and it's not pretty. All three U.S. equity benchmarks suffered their worst one-day falls in three months, the dollar slumped by the most in a month while Treasuries were shellacked, with the 30-year Treasury yield racing towards the 5% danger zone. That brought back memories of the "Sell America" trade, though the question on everyone's mind is whether Trump will "TACO" again like he did with his tariffs last April. Sign up here. Listening to him, the answer is there's no going back on Greenland. Yet markets are clinging to hopes that this is all just "Art of the Deal" bluster and he might choose to de-escalate during his big speech in Davos later today. That was enough for Wall Street futures to edge up 0.3% in Asia, while Treasuries steadied. The selloff in regional stocks also slowed, helped by gains in Chinese shares, while Japan's Nikkei narrowed its losses to 0.5%. European bourses are set for a muted open, with EURO STOXX 50 futures down 0.1%. The rout in global bond markets also paused, providing some relief to investors that have been caught up in a perfect storm of worries over exposure to U.S. assets and a surge in Japanese government borrowing costs. The 40-year yield has since fallen 6 basis points, after a 26 bps jump on Tuesday. Fears of a massive spending spree under Japanese Prime Minister Sanae Takaichi still remained, drawing critique from the opposition. Safe-haven gold remains in demand, up 1.5% to break $4,800 an ounce, while platinum crossed $2,500 for the first time. Finally, the U.S. Supreme Court is hearing arguments in the Federal Reserve Governor Lisa Cook case later today, just in case anyone forgot what Trump was trying to do to the central bank. Key developments that could influence markets on Wednesday: -- Trump delivers key address at the World Economic Forum in Davos -- UK CPI for December -- ECB President Christine Lagarde speaks at the World Economic Forum in Davos -- U.S. Supreme Court hears oral arguments over Trump's effort to oust Fed Governor Lisa Cook https://www.reuters.com/world/china/global-markets-view-europe-2026-01-21/
