2025-05-19 21:51

WASHINGTON, May 19 (Reuters) - U.S. Senator Elizabeth Warren is pushing Brazilian meatpacker JBS SA (JBSS3.SA) , opens new tab to explain its $5 million donation to the Trump-Vance Inaugural Committee and whether the money courted the Trump administration's recent approval of its listing on the New York Stock Exchange. JBS, the world's largest meat company, received approval in April from the Securities and Exchange Commission to dual-list its shares in Brazil and New York after years of trying. The company's donation to President Donald Trump's inauguration festivities in January was the largest of any donor. Sign up here. Warren, a Democrat, asked the company in a letter whether it or its subsidiary poultry company Pilgrim's Pride had communicated with Trump or his team about the donations or listing approval. Warren, who sits on the Senate Banking Committee, noted the Department of Justice has two ongoing civil investigations into Pilgrim's Pride, including into how it pays its farmers and for antitrust matters. "Your large donations and direct stake in federal policies and enforcement actions, and the Trump Administration's series of actions that benefit your companies, raise serious concerns about a potential quid-pro-quo arrangement," Warren said in the letter, which was sent to the company on Monday and first reported by Reuters. JBS did not immediately respond to a request for comment. The company's shareholders will vote on its NYSE listing on May 23. Environmental groups have slammed the listing, citing concerns over deforestation of the Amazon for livestock production and the company's emissions of greenhouse gases. JBS in February agreed to pay $83.5 million to settle antitrust claims that it conspired with other meatpackers to keep meat prices artificially high. https://www.reuters.com/world/us/us-senator-questions-brazilian-meatpacker-jbs-over-trump-inaugural-fund-2025-05-19/

2025-05-19 21:04

NEW YORK, May 19 (Reuters) - By Lewis Krauskopf, Markets Correspondent The Moody's downgrade of the U.S. credit rating rippled through markets on Monday and put fresh focus on the nation's fiscal outlook. Long-dated Treasury yields rose, the dollar fell, while stocks edged higher after rebounding from sharp declines early in the session. Sign up here. Jamie is enjoying some well-deserved time off, but check out his latest column examining Federal Reserve Chair Jerome Powell's legacy as the central bank prepares to release its new review later this year. I'd love to hear from you, so please reach out to me with comments at [email protected] , opens new tab Today's Key Market Moves Today's Key Reads Dealing with the US downgrade The landmark downgrade of the U.S. sovereign credit rating dominated markets on Monday, the first full trading day since Moody's Investors Service cut the country's pristine rating late on Friday. The move by Moody's to cut the "Aaa" rating for the U.S. rippled through Treasury markets, with the decision drawing attention to the country's deteriorating fiscal outlook. The ratings agency cited concerns about the nation's growing $36 trillion debt pile. Longer-dated Treasury yields climbed. The 30-year yield initially broke above 5% and hit an 18-month high. The yield on the benchmark 10-year Treasury also rose, touching a one-month high of 4.56% before edging back below 4.5%. The dollar weakened broadly on Monday, with the greenback hitting a more than one-week low against a basket of currencies. While the timing of the downgrade caught some investors off guard, many nonetheless said the decision was not a shock. Moody's was the last of the three major credit agencies to downgrade the U.S. rating, with Standard & Poor's doing so after the 2011 debt ceiling crisis, and Fitch downgrading the U.S. in 2023. After slumping to start Monday's session, U.S. stocks largely shrugged off the news. The benchmark S&P 500 ended with a slim gain after initially falling 1%. The downgrade did not appear to significantly dampen the mood on Wall Street, which has improved dramatically. Optimism that worst-case trade scenarios will not come to pass -- especially following a U.S.-China trade truce -- is helping a torrid rebound for equities over the past few weeks. The S&P 500 is within 3% of its all-time high after sliding to the brink of a bear market in early April. The fiscal issues facing the U.S. will remain in the spotlight this week, as lawmakers debate a sweeping tax bill. Republicans who control the House of Representatives will try to nudge President Donald Trump's bill toward passage this week, despite a running battle over spending cuts and tax breaks. Trade continued to be a dominant topic for investors. Treasury Secretary Scott Bessent said in television interviews over the weekend that Trump will impose tariffs at the rate he threatened last month on trading partners that do not negotiate in "good faith" on deals. It's a slow week for U.S. economic data, but investors in the coming days will have quarterly earnings reports from a number of major U.S. retailers to chew on. 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. 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. https://www.reuters.com/markets/global-markets-trading-day-graphics-2025-05-19/

2025-05-19 20:55

Rio Tinto will invest up to $900 million in Maricunga project Rio will partner with state mining firm Codelco Partnership gives Chile third private firm in lithium sector Expands Rio's reach in South American lithium SANTIAGO, May 19 (Reuters) - Chile's Codelco will partner with global mining giant Rio Tinto (RIO.AX) , opens new tab for its new Maricunga lithium project, the state miner said on Monday, bringing a major new player into the sector in the world's second-largest producer of the EV battery metal. The partnership means Rio Tinto will break into a sector dominated for years in Chile by local miner SQM (SQMA.SN) , opens new tab and U.S. rival Albemarle Corp (ALB.N) , opens new tab, as it seeks to deepen its still-young push into the coveted "white gold" metal. Sign up here. International miners, car makers and battery firms are eager to secure supply of lithium, an ultra-light metal needed to power the shift toward electric vehicles. South America's "lithium triangle" - in Chile, Argentina and Bolivia - has the world's largest trove of the metal. Rio Tinto will contribute up to $900 million in the deal to extract lithium from the Maricunga project in northern Chile, which has yet to be mined but is home to one of the world's highest concentrations of lithium in brine. Rio will take a 49.99% share in the venture. Codelco - the world's top copper producer, which Chile's government has tasked with spearheading the state's push into lithium - will control the rest. Rio Tinto CEO Jakob Stausholm said the company aims to "bring significant investment" to the region. He signaled opportunities to share infrastructure and minimize water use in tandem with the Nuevo Cobre copper exploration project in northern Chile that Rio already shares with Codelco. The state's partnership with one of the world's biggest miners gives heft to Chile's vision of expanding its lithium industry, analysts said. "This joint venture accelerates the country's strategic objective to reclaim leadership as the world's top lithium producer, while allowing Codelco to diversify its portfolio," said BTG Pactual analyst Cesar Perez. The South American country was the world's top producer until 2017, when Australia moved into first place. Executives and analysts have criticized efforts to open the industry to further investment as slow and hampered by red tape. RIO TINTO'S LITHIUM AMBITIONS The deal will see Rio contribute $350 million when the deal closes - expected to be in the first quarter next year - $500 million when a final investment decision is made, and $50 million if commercial production is reached by the end of 2030. "Rio has sought to accelerate building a South American lithium business from a starting position as a non-producer," J.P. Morgan said in a note, citing a $825 million deal for the Rincon lithium project in No. 4 producer Argentina in 2021. Rio Tinto last year tacked on a $6.7 billion acquisition of U.S. company Arcadium, which has several Argentina projects. "Rio's partnership with Codelco will expand its lithium footprint into Chile," said the J.P. Morgan note. Daniel Jimenez, a lithium consultant at iLiMarkets in Chile, said Rio Tinto can provide both capital and know-how from the Argentina sites. For Rio, it cements a wider regional strategy. "Through this partnership, Rio Tinto secures a competitive long-term position," Jimenez said. NEW TECHNOLOGY Codelco is also taking a stake in SQM's operations in the Atacama salt flat, which holds the world's highest concentration of lithium in brine. Just to the south, Maricunga ranks second. Remaining questions include how soon the firms can ramp up direct lithium extraction (DLE), which is intended to be quicker and more environmentally friendly than traditional methods that rely on evaporation to separate lithium from the salty brine liquid. Companies globally have struggled to pull off DLE at commercial scale, given technical complexities and the unique composition of each salt flat. In an earlier document announcing the project to potential bidders, Codelco said it was evaluating DLE use as of 2033. Codelco said the project attracted four binding offers, but did not name the other candidates. https://www.reuters.com/markets/commodities/chiles-codelco-taps-rio-tinto-major-new-lithium-tie-up-2025-05-19/

2025-05-19 20:53

WASHINGTON, May 19 (Reuters) - Iraqi Kurdish Prime Minister Masrour Barzani will oversee the signing of two energy agreements worth a combined $110 billion over their lifetimes with U.S. companies HKN Energy and WesternZagros, an adviser to the leader said on social media on Monday. HKN will develop the Miran Gas Field, estimated to hold 8 trillion standard cubic feet of natural gas, Bayan Sami Abdul Rahman, a senior adviser to Barzani said in a post on X. Sign up here. WesternZagros will develop the Topkhana-Kurdamir blocks, containing 5 trillion standard cubic feet of gas and 900 million barrels of oil, enough to power millions across Kurdistan and Iraq, the adviser said. "A milestone for energy security and US-Kurdistan ties," the adviser said on X. https://www.reuters.com/business/energy/iraqi-kurdish-leader-oversee-signing-energy-agreements-with-us-companies-2025-05-19/

2025-05-19 20:53

May 19 (Reuters) - The U.S. Department of Justice has opened a probe into a recent breach at the world's largest cryptocurrency exchange Coinbase Global (COIN.O) , opens new tab, the company said on Monday. "We have notified and are working with the DOJ and other US and international law enforcement agencies and welcome law enforcement's pursuit of criminal charges against these bad actors," said Paul Grewal, Chief Legal Officer, Coinbase. Sign up here. "Coinbase is not under DOJ investigation, DOJ is investigating the criminal actors," a source told Reuters on Monday. The company last week said it received an email from an unknown threat actor on May 11, claiming to have information about certain customer accounts as well as internal documents. It expects a hit of $180 million to $400 million from the cyberattack. Coinbase has said the attackers stole some data, including names, addresses and emails, but they did not get access to login credentials or passwords. U.S. Justice Department did not immediately respond to a Reuters request for comment. https://www.reuters.com/sustainability/boards-policy-regulation/us-doj-opens-investigation-into-coinbases-recent-cryberattack-bloomberg-news-2025-05-19/

2025-05-19 20:51

BRASILIA, May 19 (Reuters) - Brazil's central bank does not see any realistic prospect of emerging nations in the BRICS group creating markets large enough to topple the U.S. dollar's dominance within the next 10 years, monetary policy director Nilton David said on Monday. There is not a meaningful stock of BRICS-denominated assets that could offset the dollar at the moment, David told a central bank webcast. "I don't think that will change over the coming decade," he added. Sign up here. The director acknowledged that alternative settlement tools could gain traction and help boost bilateral trade deals, but nowhere near enough to dislodge the dollar in any visible horizon. The BRICS acronym refers to the five major emerging economies of Brazil, Russia, India, China and South Africa, which have been working together to address global issues. The group recently added six other members. Reuters reported in February that Brazil's presidency of BRICS this year would shelve talk of a common currency, focusing instead on ways to trim dollar reliance, such as linking payment systems and exploring blockchain standards set by bodies like the Bank for International Settlements. U.S. President Donald Trump has repeatedly cautioned the BRICS group - whose original members were Brazil, Russia, India and China - against attempts to challenge the supremacy of the dollar. Founded in 2009 and soon expanded to add South Africa, the group has recently included Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates, making it a growing diplomatic counterweight to traditional Western powers. David also said he views bitcoin as "a speculative currency by nature," noting that Brazil's $340 billion foreign-exchange reserves remain overwhelmingly in dollars because nearly all of the country's external transactions are settled in the U.S. currency. According to the director, the central bank wants to preserve the liquidity and depth of its foreign-exchange market but it acknowledges that these features have side effects. David noted that the Brazilian real has a "natural" correlation with risk assets, making it more volatile. It is often the pivot for portfolio managers, he said, adding that this attracts investors who hold the currency only briefly, causing demand to swing sharply. https://www.reuters.com/world/americas/no-brics-asset-pile-big-enough-rival-dollar-brazil-central-bank-director-says-2025-05-19/