2025-05-22 19:59
SAO PAULO, May 22 (Reuters) - Nestle's (NESN.S) , opens new tab Nescafe plans to invest an additional 500 million reais ($88.7 million) in Brazil by 2028, the coffee brand said on Thursday in a presentation to journalists. The amount comes on top of the 1 billion-real investment the company had announced last year in Latin's America largest economy. Sign up here. Brazil is the second-largest coffee consumer in the world and Nestle's total investment - now standing at 1.5 billion reais - will reinforce the country's strategic role in the company's global growth, it said. The fresh investments are focused on expanding its Montes Claros factory, located in the southeastern state of Minas Gerais, and increasing the footprint of its "Nestle Professional" coffee machines, according to the firm. Nescafe refers to its capsule products as "portion coffee" and Valeria Pardal, the company's business executive officer for coffee beverages said it was optimistic about the sector's future growth. "In the last five years, Nestle's "portion coffee" category has grown around 20%, so we are estimating this level of growth going forward," Pardal said. The Nescafe brand was first created in Brazil - the world's largest coffee producer and exporter - to sell instant coffee, but now has a broader range of products. ($1 = 5.6397 reais) https://www.reuters.com/world/americas/nestles-nescafe-invest-additional-89-million-brazil-business-2025-05-22/
2025-05-22 19:47
SANTIAGO, May 22 (Reuters) - Chile's state-run mining body ENAMI has tapped Rio Tinto (RIO.AX) , opens new tab, (RIO.L) , opens new tab for a 51% share of the Altoandinos lithium project, it said on Thursday, giving the global miner its second major venture in Chile for extraction of the key battery metal. Rio said it would initially contribute $425 million to the project to fund studies required before a final investment decision. Sign up here. Rio's selection - in which it beat out French miner Eramet (ERMT.PA) , opens new tab, Chinese carmaker BYD (002594.SZ) , opens new tab and Korean steel group Posco (005490.KS) , opens new tab - further raises its profile in Chile, the world's second-largest producer of lithium, following its selection this week by state-run copper miner Codelco (CODEL.UL) to partner on the Maricunga lithium project. Rio had already launched a strong push into Latin America with its projects in Argentina, including Rincon and several it acquired in the takeover of U.S. firm Arcadium under the leadership of CEO Jakob Stausholm, whose surprise departure later this year was announced on Thursday. For Altoandinos, Rio's investment will cover a pre-feasibility study, the use of the Rio pilot plant at Rincon, and the use of Rio's direct lithium extraction technology (DLE), ENAMI said. Rio will take three board seats, with two others going to ENAMI. "Rio Tinto provides a financing option that ensures the necessary resources for the project until it reaches commercial operation," ENAMI said in a statement. The project, which comprises the Aguilar, La Isla and Grande salt flats, could yield 75,000 metric tons of lithium per year, and will be designed to use DLE in order to preserve the area's water composition, ENAMI said. ENAMI told Reuters that it and Rio would jointly evaluate financing proposals from companies that had previously expressed interest - China's CNGR Advanced Material Co Ltd (300919.SZ) , opens new tab and South Korea's LG Energy Solution (373220.KS) , opens new tab. In addition to the lithium projects in Chile, Rio also is a partner with Codelco on copper exploration at Nuevo Cobre. Rio said its goal for Chile is to develop a "copper and lithium district" through shared infrastructure across the projects. It also hinted at interest in further acquisitions in the sector. "Rio Tinto ... will continue to evaluate Tier 1 opportunities globally as it gains momentum in building a world-class lithium business," it said in a statement. https://www.reuters.com/world/americas/chile-taps-rio-tinto-second-major-lithium-project-2025-05-22/
2025-05-22 19:35
Texas, other states accuse asset managers of discouraging coal output BlackRock, State Street and Vanguard have sought to have the case dismissed DOJ and FTC urge judge to reject several of the asset managers' arguments May 22 (Reuters) - U.S. federal antitrust enforcers expressed support on Thursday for arguments wielded by Republican states that accuse asset managers BlackRock (BLK.N) , opens new tab, Vanguard and State Street (STT.N) , opens new tab of conspiring through climate activism to decrease coal output. The U.S. Department of Justice and Federal Trade Commission filed a statement of interest in the case where Texas and 12 other states claim the companies used their substantial holdings in U.S. coal companies to discourage competition. Sign up here. The entry of the federal officials raises the stakes for the case that tests how freely the three fund firms may act with the combined $27 trillion they manage for investors. The companies have denied wrongdoing and called the case "half-baked." In recent years, they have reduced their focus on climate and social issues while maintaining substantial investments in fossil fuel companies. Nonetheless, the agencies on Thursday urged the judge overseeing the case in Tyler, Texas, to reject several of the arguments the asset managers made in their bid to dismiss the case, including that the alleged conduct falls under an exemption for passive investors. In their court brief, the agencies cited allegations the fund firms' conduct raised U.S. energy prices. "This case is about precisely the sort of conduct, including concerted efforts to reduce output, which have long been condemned under the antitrust laws," the agencies said. Assistant Attorney General Gail Slater, who leads the DOJ's antitrust division, and FTC Chairman Andrew Ferguson said in statements that competition in coal is important to U.S. President Donald Trump's goal of American energy dominance. BlackRock said that forcing asset managers to divest from coal companies -- one outcome sought by the state plaintiffs -- would harm the companies' access to capital and likely raise energy prices. "The DOJ and FTC’s support for this baseless case undermines the Trump Administration’s goal of American energy independence," BlackRock said. State Street said it acts in the long-term interests of investors and called the lawsuit "baseless." Vanguard reiterated its prior comment that it would defend its history of safeguarding returns for investors. The Investment Company Institute, an industry trade group, said it was "very troubled by the implications of the specious arguments" in the filing in support of the suit the group said risks major problems for funds, investors and energy companies. The agencies, the ICI said, are "pushing an expansive reading of antitrust law that would chill ordinary investment activity." Reuters first reported earlier on Thursday that the agencies were expected to support the states' arguments. The development marks a political setback for the three managers, already under fire from conservative Republicans, many from energy-producing states. There were signs of thawing relations in February when BlackRock led a consortium to buy ports near the strategic Panama Canal, a deal hailed by Trump. In addition, U.S. energy regulators in April renewed BlackRock's permission to own major stakes in public utility companies. U.S. District Judge Jeremy Kernodle is scheduled to hear arguments on the asset managers' bid to dismiss the case in June. https://www.reuters.com/sustainability/boards-policy-regulation/us-expected-support-republican-states-argument-blackrock-climate-case-2025-05-22/
2025-05-22 19:35
SAO PAULO/BRASILIA, May 22 (Reuters) - Brazil's government announced on Thursday the need to contain 31.3 billion reais ($5.58 billion) in this year's budget to comply with the country's fiscal rules, according to its bimonthly revenue and expenditure report. Before the document was released, Transport Minister Renan Filho had already disclosed the size of the strong cost-cutting effort at an event in Sao Paulo, adding that the government would also announce a hike in the financial transactions tax to help boost revenues this year. Sign up here. According to the report, released by the Finance and Planning Ministries, the government will need to block 10.6 billion reais in expenses to meet a cap established by law of a 2.5% growth above inflation. Additionally, it will have to freeze 20.7 billion reais to meet the government's zero primary deficit target, which allows for a tolerance margin of 0.25% of GDP above or below the goal. In 2023, President Luiz Inacio Lula da Silva passed a new fiscal framework that combines a primary budget target with a limit on real expansion in public spending. Under the new system, spending blocks are triggered by excessive expenditure growth, while spending freezes are usually imposed when revenues underperform. Thursday's report drew close market attention as it provides the first detailed budget snapshot of the year. The March edition was not published due to delays in congressional approval of the annual budget bill, which was only greenlit that month, later than the usual year-end timeline. With mandatory expenditures such as social benefits and pensions growing well above the framework's overall spending cap, available room for discretionary outlays - like investments and public administration - has become increasingly tight. Many analysts argue this trend could render the new fiscal rules unsustainable over a few years. Finance Minister Fernando Haddad's team has repeatedly stated it will take all necessary measures to meet the fiscal target. ($1 = 5.6056 reais) https://www.reuters.com/world/americas/brazil-government-announce-55-billion-spending-containment-iof-tax-hike-2025-05-22/
2025-05-22 19:32
Treasury plans to phase out production in 2026 Expects annual savings of $56 million Move comes amid cost concerns May 22 (Reuters) - The federal government is winding down production of the penny coin following a bipartisan effort to nix the lowest-denomination of U.S. currency over cost concerns, according to a plan outlined by the Treasury Department on Thursday. The department placed its final order for blank pennies in May, it said in a statement. It expects to stop putting new pennies into circulation by early 2026. Sign up here. President Donald Trump in February directed Treasury Secretary Scott Bessent to cease production of the coin. Trump has described spending on penny minting as "wasteful." In recent weeks, Republican and Democratic lawmakers introduced separate bills in the House of Representatives and the Senate calling for an end to penny production. The change means that businesses will have to start rounding the prices of cash transactions up or down to the nearest five-cent nickel as the number of pennies in circulation dwindles. The Treasury's penny phase-out plan was first reported by the Wall Street Journal, the details of which were confirmed to Reuters by a department spokesperson. The cost of producing the penny has risen from 1.3 cents per coin to 3.69 cents over the past 10 years, according to the Treasury. It said stopping production will lead to immediate annual savings of $56 million. The penny was first issued by the government in 1793. Since 1909, the profile of President Abraham Lincoln has adorned the obverse side of the coin that is made of zinc and copper. Americans have debated for years whether the penny should be dropped from the line-up of American currency. Supporters of the penny argue it helps keep consumer prices down and is a source of income to charities. For its critics, the coin is a nuisance that ends up being discarded in drawers, ash trays and piggy banks. There are around 114 billion pennies currently in circulation in the U.S., according to the Treasury. https://www.reuters.com/world/us/us-treasury-unveils-plan-end-production-penny-coin-2025-05-22/
2025-05-22 18:10
May 22 (Reuters) - Argentina is easing foreign currency reporting rules to encourage residents to start using an estimated $271 billion in cash dollars squirreled away in mattresses and foreign bank accounts, long held by Argentines as a hedge against decades of economic turmoil. Argentines will be able to use dollars without declaring where they came from, presidential spokesman Manuel Adorni said at a press conference on Thursday. Previously, the dollars could not be used without declaring their origin, which triggered taxes. Sign up here. The underground cash stash dwarfs a recent $20 billion program from the International Monetary Fund and would prop up the peso if even a fraction of it was returned to the economy. But many Argentines are wary of fessing up to what they hold. Chronic economic instability has led them to shun local banks, instead relying on cold, hard cash stuffed under mattresses, stored in safety-deposit boxes or sent to accounts abroad. National statistics agency INDEC estimates there is $271 billion in foreign currency outside of the formal banking system, and analysts believe Argentines hold one of the world's largest troves of dollars abroad. Economy Minister Luis Caputo declined to estimate how much the government was hoping to bring back onto the books. The measure is set to be formalized in a decree from President Javier Milei, Adorni said. It widens a tax amnesty scheme rolled out last year which lured tens of billions of dollars back into circulation. A bill will later be sent to Congress with the same proposals as the decree, Adorni said, which would give the new rules greater staying power. That will "protect (the measure) from future administrations," Caputo said, who urged people to "vote correctly" in elections later this year to ensure continuity in the amnesty scheme. Many Argentines feel burned by previous administrations that rolled back amnesty measures, forcing them to pay up on funds meant to be tax-free. "This isn't about drug traffickers hiding money, it's about the vast majority of Argentines, who were abused by the system for years," Caputo said. The IMF warned on Thursday that the scheme must comply with international anti-money laundering standards. Caputo brushed off those concerns, joking that he doubted criminals would want to formalize their funds. Officials added funds believed to be obtained through illicit means would be investigated. https://www.reuters.com/world/americas/argentina-clears-roadblocks-use-stashed-away-dollars-2025-05-22/
