2025-05-20 22:29

PORTO ALEGRE, Brazil, May 20 (Reuters) - The results of genetic tests suggested that Brazil's first outbreak of bird flu on a commercial poultry farm in the state of Rio Grande do Sul shares the strain with cases in zoo animals in the same state, an official told Reuters on Tuesday. Rosane Collares, a director at the state's agriculture department, said is not yet possible to ascertain a direct relation between the two outbreaks. Sign up here. https://www.reuters.com/business/healthcare-pharmaceuticals/genetic-test-suggests-brazils-bird-flu-cases-farm-zoo-share-same-strain-2025-05-20/

2025-05-20 22:01

Differences over enrichment put nuclear talks in balance No deal would expose Iran to sanctions, military threat, unrest Iran would strengthen ties with China, Russia, officials say DUBAI/PARIS, May 20 (Reuters) - While rising U.S.-Iran tensions over Tehran's uranium enrichment jeopardize nuclear talks, three Iranian sources said on Tuesday that the clerical leadership lacks a clear fallback plan if efforts to resolve a decades-long dispute collapse. With negotiations faltering over clashing red lines, Iran may turn to China and Russia as a "Plan B", the sources said, but with Beijing's trade war with Washington and Moscow distracted with its war in Ukraine, Tehran’s backup plan appears shaky. Sign up here. "The plan B is to continue the strategy before the start of talks. Iran will avoid escalating tensions, it is ready to defend itself," a senior Iranian official said. "The strategy also includes strengthening ties with allies like Russia and China." On Tuesday, Iran's Supreme Leader Ayatollah Ali Khamenei rejected U.S. demands to halt uranium enrichment as “excessive and outrageous”, warning that the talks are unlikely to yield results. After four rounds of talks aimed at curbing Iran's nuclear programme in return for sanctions relief, multiple stumbling blocks remain. Tehran refuses to ship all of its highly enriched uranium stockpile abroad or engage in discussions over its ballistic missile programme, two of the Iranian officials and a European diplomat said. The lack of trust on both sides and President Donald Trump's decision to pull out of a 2015 accord with world powers has also raised the importance for Iran of getting guarantees that Washington will not renege on a future accord. Compounding Tehran's challenges, Iran's clerical establishment is grappling with mounting crises - energy and water shortages, a plummeting currency, military losses among regional allies, and rising fears of an Israeli attack on its nuclear sites - all exacerbated by Trump's hardline policies. With Trump's speedy revival of a "maximum pressure" campaign on Tehran since February, including tightened sanctions and military threats, the sources said, Iran's leadership "has no better option" than a new deal to avert economic chaos at home that could threaten its rule. Nationwide protests over social repression and economic hardship in recent years, met with harsh crackdowns, have exposed the Islamic Republic's vulnerability to public anger and triggered sets of Western human rights sanctions. "Without lifting sanctions to enable free oil sales and access to funds, Iran’s economy cannot recover,” said the second official, who like others asked not to be identified due to sensitivity of matter. Iran's foreign ministry was not immediately available for comment. A THORNY PATH Wendy Sherman, former U.S. Undersecretary for Political Affairs who led the U.S. negotiating team that reached the 2015 accord between Tehran and six world powers, said it was impossible to convince Tehran to "dismantle its nuclear programme and give up their enrichment even though that would be ideal". "So that means they will come to an impasse, and that we will face the potential for war, which I don't think, quite frankly, President Trump looks forward to because he has campaigned as a peace president," she said. Even if enrichment disputes narrow, lifting sanctions remains fraught. The U.S. favours phasing out nuclear-related sanctions, while Tehran demands immediate removal of all restrictions. Dozens of Iranian institutions vital to Iran's economy, including its central bank and national oil company, have been sanctioned since 2018 for "supporting terrorism or weapons proliferation". When asked about Iran's options if talks fail, Sherman said Tehran would likely "continue to circumvent sanctions and sell oil, largely to China, perhaps India and others". China, Iran's primary oil buyer despite sanctions, has helped stave off economic collapse, but Trump's intensified pressure on Chinese trade entities and tankers threatens these exports. Analysts warn that China and Russia’s support has limits. China insists on steep discounts for Iranian oil and may push for lower prices as global oil demand weakens. If talks collapse - a scenario both Tehran and Washington hope to avoid - neither Beijing nor Moscow can shield Iran from unilateral U.S. and EU sanctions. France, Britain and Germany, though not part of the U.S.-Iran talks, have warned they would reimpose U.N. sanctions if no deal emerged quickly. Under the 2015 nuclear pact's U.N. resolution, the E3 have until October 18 to trigger the so-called "snapback mechanism" before the resolution expires. According to diplomats and a document seen by Reuters, the E3 countries may do this by August if no substantial deal can be found by then. Diplomats warn that getting a deal before then would mean, in the best case scenario, an initial political framework like in 2013 whereby both sides offer some immediate concrete concessions giving time for a more detailed negotiation. "There is no reason to think it will take less time than the 18 months in 2013 especially when the parameters and the geopolitical situation is more complicated now," a senior European official said. https://www.reuters.com/world/middle-east/iran-faces-us-without-plan-b-nuclear-red-lines-collide-2025-05-20/

2025-05-20 21:43

Nippon Steel seeking meeting with US Treasury Secretary, who chairs CFIUS Nippon Steel says it sees approval if President Trump fully understands deal's value Final decision on transaction expected by June 5 TOKYO, May 21 (Reuters) - Japan's Nippon Steel (5401.T) , opens new tab remains committed to acquiring a full stake in U.S. Steel (X.N) , opens new tab, a senior executive said, adding that it is seeking a meeting with U.S. Treasury Secretary Scott Bessent to clarify President Donald Trump's stance on the deal. The steelmakers face a May 21 deadline for the completion of a renewed national security review by the Committee on Foreign Investment in the US (CFIUS) of the proposed $15 billion merger, which was blocked by former President Joe Biden on national security grounds in January following a prior review. Sign up here. In April, Trump directed the CFIUS to reassess the deal, raising hopes of a reversal, although he said in February the deal would take the form of an investment instead of a purchase. Trump is expected to decide the fate of the transaction by June 5. "Our intention to pursue a full buyout remains unchanged," Nippon Steel Vice Chairman Takahiro Mori, a lead negotiator on the deal, told Reuters on Tuesday. He said only full ownership would allow Nippon Steel to share its core technology and strengthen U.S. Steel, not in a joint venture. "There is no free technology," Mori said. He said Nippon Steel has requested a meeting with Bessent, who chairs CFIUS, to better understand Trump's position ahead of a final decision. On Tuesday, Reuters reported that Nippon Steel plans to invest $14 billion in U.S. Steel's operations, including up to $4 billion in a new mill, if the Trump administration green lights its bid for the iconic U.S. company, according to a document and three people familiar with the matter. Mori declined to comment on details of the CFIUS talks, but said any increase in investment would be tied to higher returns and would not strain the company's finances. "This deal will make U.S. Steel and United States stronger," Mori said, adding that it aligns "100% with Trump's policy," by boosting foreign investment and domestic manufacturing. "My view is, if President Trump fully understands (strategic significance), he will approve it," Mori said, noting plans to preserve U.S. Steel's name, headquarters, and integrated operations. The majority of the new board of U.S. Steel would be American, with trade and manufacturing capacity issues overseen by three independent directors appointed by CFIUS, effectively the U.S. government, addressing national security concerns, he said. The world's No.4 steelmaker expects net profit to fall 43% in the fiscal year ending March 2026, hit by slumping global steel prices driven by China's excess production and exports and impact from U.S. tariffs. https://www.reuters.com/business/nippon-steel-still-committed-full-us-steel-takeover-executive-2025-05-20/

2025-05-20 21:05

ORLANDO, Florida, May 20 (Reuters) - By Jamie McGeever, Markets Columnist U.S. assets in the red Sign up here. It was a sobering day for U.S. assets on Tuesday, with Wall Street, the dollar and longer-dated Treasuries all declining as investors took a breather to digest last week's U.S. sovereign credit downgrade and the latest twists in President Donald Trump's efforts to push his sweeping tax-cut bill through Congress. The general fiscal health of developed economies and rise in long-term yields more broadly are top of investors' minds, and the most significant move in global markets on Tuesday was Japan's 30-year yield hitting a record high. More on that below, but first, a roundup of the main market moves. I'd love to hear from you, so please reach out to me with comments at [email protected] , opens new tab. You can also follow me at @ReutersJamie and @reutersjamie.bsky.social. Trading Day is also sent by email every weekday morning. Think your friend or colleague should know about us? Forward this newsletter to them. They can also sign up here. If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today. Today's Key Market Moves Japan's long bond warning If Tuesday was a relatively calm day across global equity markets, the same cannot be said for Japanese Government Bonds, particularly the long end of the curve after a poor auction of 20-year securities triggered a rush for the exits. The 30-year JGB yield rose above the previous high from November 2000 to a fresh record peak of 3.14% and is now up more than 40 bps this month, putting it on track for its biggest monthly rise on record. The spread between Japan's 30-year JGB yield and Bank of Japan policy rate is now 263 basis points, the widest since 2004 and close to the record high around 290 bps from August that year. The severe weakness of longer-dated Japanese sovereign bond prices is the clearest reflection of a global phenomenon currently underway - declining demand for 'duration', or investors' reluctance to hold long-term government debt. Of course, Japan's fiscal dynamics are particularly fragile. The country's gross debt-to-GDP ratio of more than 250% is by far the highest in the developed world. For years it sustained that huge debt burden while paying the lowest interest rates in the developed world, but that sweet spot has gone - perhaps for good - and investors are now demanding a much higher risk premium. In many ways, Japan's situation is unique, but where Japan leads other countries often follow. Public finances and debt dynamics are deteriorating across the G7 and beyond, and ratings agency Moody's last week stripped the U.S. of its triple-A credit rating. The impact on U.S. assets has been relatively muted so far, although long-dated yields remain elevated, indicating that the move was hardly a shock. Wednesday's 20-year Treasury note auction will be under the spotlight, though, for signs of how strong or otherwise investor demand is. There will probably always be demand for the most liquid asset in the world's deepest market - it's just a question of price. In that light, interest from foreign buyers at the 20-year auction will be intensely scrutinized, given the growing worries about 'de-dollarization' and Treasuries' 'safe-haven' status. What could move markets tomorrow? Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles , opens new tab, is committed to integrity, independence, and freedom from bias. https://www.reuters.com/markets/global-markets-trading-day-graphic-pix-2025-05-20/

2025-05-20 20:58

Sanctions target shadow fleet of oil tankers, financial firms Zelenskiy urges more pressure on Russia for ceasefire Russia says it rejects ultimatums Italian PM says Pope willing to host talks BRUSSELS/LONDON/WASHINGTON May 20 (Reuters) - The EU and Britain announced new sanctions against Russia on Tuesday without waiting for Washington to join them, a day after President Donald Trump's phone call with Vladimir Putin brought about neither a ceasefire in Ukraine nor fresh U.S. sanctions. London and Brussels said their new measures would zero in on Moscow's "shadow fleet" of oil tankers and financial firms that have helped it avoid the impact of other sanctions imposed over the war. Sign up here. "Sanctions matter, and I am grateful to everyone who makes them more tangible for the perpetrators of the war," Ukraine's President Volodymyr Zelenskiy wrote on Telegram. He said it "would be good" if the United States added its help, adding: "It is important that America remain involved in the process of bringing peace closer." The sanctions were unveiled without an immediate announcement of corresponding steps from Washington, despite intense public lobbying from European leaders for the Trump administration to join them if Russia rejected a ceasefire. "We have repeatedly made it clear that we expect one thing from Russia - an immediate ceasefire without preconditions," German Foreign Minister Johann Wadephul said on the sidelines of a meeting with EU counterparts in Brussels. As Russia had not accepted a ceasefire, "we will have to react," he said. "We also expect our U.S. allies not to tolerate this." Trump told reporters on Tuesday he was deliberating over what actions to take, but gave no further details. "We're looking at a lot of things, but we'll see," he said. In a two-hour conversation with Putin on Monday, the U.S. president dropped his earlier insistence on an unconditional 30-day ceasefire and signalled that the war he once promised to end in 24 hours was no longer his to fix - a message that leaves Ukraine vulnerable and its allies worried. Asked on Monday why he had not imposed fresh sanctions to push Moscow into a peace deal, Trump said that could make the situation worse and affect the chance of a deal, while adding: "But there could be a time where that's going to happen." Trump said after talking to Putin he had told Zelenskiy and European leaders that Russia and Ukraine would immediately start negotiations on conditions for a ceasefire, a process Russia said would take time. Russia and Ukraine held their first direct talks in more than three years on Friday at Trump's behest, but failed to agree a truce after Moscow presented conditions that a member of the Ukrainian delegation called "non-starters". POPE WILLING TO HOST TALKS Italian Prime Minister Giorgia Meloni said on Tuesday that Pope Leo had confirmed to her his willingness to host in the Vatican the next round of negotiations to try to end the war. U.S. Secretary of State Marco Rubio told a congressional hearing on Tuesday that Putin had not received any real concessions in the U.S. effort to initiate talks and existing U.S. sanctions on Russia remained in place. "The president ... believes that right now, you start threatening sanctions, the Russians will stop talking, and there's value in us being able to talk and drive them to get to the table. We'll see," Rubio said. Ukraine says it is ready for an immediate ceasefire. The Europeans say Russia's insistence on talks first is proof that Putin, who started the war by invading his neighbour in 2022, is not prepared to end it. European Commission President Ursula von der Leyen said a further package of sanctions was being prepared. "It's time to intensify the pressure on Russia to bring about the ceasefire," she wrote on X. RUSSIA SAYS IT WILL NOT BOW TO ULTIMATUMS Russian Foreign Ministry spokeswoman Maria Zakharova said Russia would never bow to what she called ultimatums. Putin said on Monday that Moscow was ready to work with Ukraine on a memorandum about a future peace accord. "Now, accordingly, the ball is in Kyiv's court," Zakharova said. Brussels and London signalled they have not given up hope of persuading Washington. "Let us push Vladimir Putin to put an end to his imperialist fantasy," France's Foreign Minister Jean-Noel Barrot said. Britain's Foreign Minister David Lammy said "delaying peace efforts will only redouble our resolve to help Ukraine to defend itself and use our sanctions to restrict Putin's war machine". The latest sanctions are aimed mainly at cracking down on a shipping fleet Russia uses to export oil, circumventing a $60 a barrel price cap imposed by the G7 group of industrialised countries to limit Russia's income. Britain and the EU said they would also work to lower the cap, which imposes far less of a discount on Russian oil now that global prices have fallen this year. https://www.reuters.com/world/europe/eu-adopts-new-sanctions-against-russia-kallas-says-2025-05-20/

2025-05-20 20:55

SAO PAULO, May 20 (Reuters) - A suspected case of bird flu in a farm worker in the Brazilian city of Montenegro came back negative, the health ministry of Rio Grande do Sul, the country's southernmost state, said in a statement on Tuesday. The worker worked at the poultry grange where authorities last week identified Brazil's first bird flu case in a commercial farm, according to the statement. There have been no reports of human infections in Brazil since that outbreak. Sign up here. https://www.reuters.com/business/healthcare-pharmaceuticals/suspected-bird-flu-case-brazil-farm-worker-came-back-negative-authorities-say-2025-05-20/