2025-05-19 20:45
Dow up 0.32%, S&P 500 up 0.09%, Nasdaq rise 0.02% TXNM Energy gains after Blackstone deal Novavax jumps after coronavirus vaccine wins FDA approval NEW YORK, May 19 (Reuters) - U.S. stocks finished near the unchanged mark on Monday with market sentiment weakened by the downgrade of the federal government's perfect sovereign credit rating owing to its huge debt profile. Moody's slashed the U.S. sovereign credit rating to "Aa1" from "Aaa" after markets closed on Friday, citing the government's $36 trillion outstanding debt and interest. Sign up here. "It is to be understood that markets were going to have a little bit of reaction because the (Moody's) announcement was after markets closed," said Talley Leger, chief market strategist at The Wealth Consulting Group. "But my view is that the 'sell-America' trade is overdone." Equities had rebounded from declines earlier in the session to finish near the unchanged mark. Still, the benchmark S&P 500 notched its sixth straight sessions of gains. Seven out of the 11 S&P sectors advanced led by healthcare (.SPXHC) , opens new tab, consumer staples (.SPLRCS) , opens new tab, industrials (.SPLRCI) , opens new tab, materials (.SPLRCM) , opens new tab and utilities (.SPLRCU) , opens new tab stocks. Energy (.SPNY) , opens new tab stocks were the biggest losers in addition to consumer discretionary (.SPLRCD) , opens new tab. The Dow Jones Industrial Average (.DJI) , opens new tab rose 137.33 points, or 0.32%, to 42,792.07, the S&P 500 (.SPX) , opens new tab gained 5.22 points, or 0.09%, to 5,963.60 and the Nasdaq Composite (.IXIC) , opens new tab gained 4.36 points, or 0.02%, to 19,215.46. Benchmark 10-year Treasury yields gained on concerns that a U.S. tax bill will increase the debt load by more than previously expected. The yield on benchmark U.S. 10-year notes rose 1 basis point to 4.449%. President Donald Trump's sweeping tax-cut bill had won approval from a key congressional committee on Sunday. TXNM Energy (TXNM.N) , opens new tab rose 7% after the utility said it would be acquired by the infrastructure unit of Blackstone (BX.N) , opens new tab in an $11.5-billion deal. Novavax (NVAX.O) , opens new tab shares jumped 15% after the company secured a long-awaited U.S. regulatory approval for its COVID-19 vaccine. Regeneron Pharmaceuticals (REGN.O) , opens new tab rose 0.4% after it announced it will buy genomics firm 23andMe Holdings for $256 million through a bankruptcy auction. Declining issues outnumbered advancers by a 1-to-1 ratio on the NYSE. There were 216 new highs and 50 new lows on the NYSE. The S&P 500 posted 26 new 52-week highs and no new lows while the Nasdaq Composite recorded 57 new highs and 57 new lows. Volume on U.S. exchanges was 19.41 billion shares, compared with the 17.34 billion average for the full session over the last 20 trading days. https://www.reuters.com/business/us-stock-futures-slide-moodys-cuts-countrys-sovereign-credit-rating-2025-05-19/
2025-05-19 20:37
Heavy flooding could cause losses for corn, soy harvest Floods add to existing delays due to excess water in the soil Argentina is world's top exporter of soybean meal and oil and the no. 3 exporter of corn BUENOS AIRES, May 19 (Reuters) - Argentina's agricultural heartland has been lashed by heavy rains in recent days, leaving some soy fields underwater with up to 400 millimeters (15.75 inches) of precipitation recorded in certain areas bringing widespread flooding. "Everywhere you looked was like a sea of water," grains farmer Martin Vivanco told Reuters by phone on Monday from San Antonio de Areco, a rural area 100 kilometers (62.14 miles) west of the capital city, Buenos Aires. Sign up here. "Some of the farmland in lower regions is completely covered in water and will be very hard to harvest. Some people even lost their farms." Argentina is the world's top exporter of soybean oil and soybean meal, and the No. 3 exporter of corn. The precipitation is some three to four times normal levels for May, according to German Heinzenknecht, a meteorologist at Applied Climatology Consulting, raising farmers' fears that the soy and corn crops could suffer major losses. The heavy rains from Thursday to Saturday added to already-abundant showers in recent months, said Heinzenknecht. "The amount of water that fell was absolutely ludicrous," said Heinzenknecht. "Even if it had only rained 150 mm, we would have still faced flooding." Farmers have been facing delays in harvesting the current soy crop due to the wet fields and muddy roads. Putting off harvesting can cause crops to develop disease or seed pods to open, also causing losses. In Salto, another agricultural area north of Buenos Aires, storms flooded 171,000 hectares with 330 mm of water, according to farmer Esteban Plazibat. "I have silobags and I know I will have problems. I have them in high places, but this time even the high places were flooded," he explained. The floods are affecting chicken and pig farms in the area as well, he added. Silobags are large bags that farmers can use to store over 200 tons of soybeans. These bags are widely used in Argentina and can be seen in fields across the country. Soy that has not yet been harvested is also at risk given that collection was already delayed due to excess water in the soil. Major delays imply potential losses due to crop disease or pod openings in the field. Though corn is more tolerant to water, Vivanco explained that some fields saw water levels of over a meter, which can impact the plant's development. Farmers' association CARBAP showed images on social media platform X of fields underwater and impassable farm roads. The heavy rains also caused flooding in some cities in the Buenos Aires province, where locals had to be evacuated from their homes. Prior to the most recent rains, the Buenos Aires grains exchange estimated the current soybean crop to reach 50 million metric tons and the corn crop to reach 49 million tons, respectively. Both crops are in their harvesting stage. "Everything is affected. This is unlike anything we've seen before," Vivanco said. https://www.reuters.com/business/environment/argentinas-farmers-describe-sea-water-after-downpour-hits-harvest-2025-05-19/
2025-05-19 20:19
LONDON, May 19 (Reuters) - Bank of England policymaker Swati Dhingra said on Monday her decision to vote for a half-point reduction in the central bank's recent interest rate decision was to make a statement on the direction of the British economy. "I get to pick times when I want to be able to make a more categorical statement about where I think the economy is headed," Dhingra said in a podcast interview to the Financial Times. Sign up here. "If I were to keep doing 100 basis points reductions, I don't think it would have as much impact on how financial markets perceive that reduction," Dhingra added. "I don't think it would be as strong as if I were to use it sparingly, and that's what I've chosen to do." The BoE cut its benchmark Bank Rate by a quarter of a percentage point on May 8. Dhingra was one of two members, alongside Alan Taylor, on the Monetary Policy Committee to vote for a bigger 50 basis point reduction. On Monday, Dhingra also attributed the vote to her wider view on where interest rates should be over the longer term. https://www.reuters.com/world/uk/boes-dhingra-says-her-rate-decision-signalled-economic-direction-2025-05-19/
2025-05-19 20:15
BRASILIA, May 19 (Reuters) - Brazil's economy powered through the first quarter, defying high borrowing costs thanks to a bumper grain harvest and growth in the industrial sector, central bank data showed on Monday. The IBC-Br economic activity index, regarded as a proxy for gross domestic product (GDP), grew 1.3% in the January-to-March period from the previous quarter. Sign up here. Analysts had previously projected that Latin America's largest economy would reap substantial gains from its sizable soybean harvest, which typically occurs early in the year. The agricultural component of the index rose 6.1% in the last quarter. Even stripping out that boost, economic activity still increased 1.0% from the previous quarter, driven mainly by industrial growth of 1.6%, according to the central bank's methodology. This shows monetary policy still has work to do, said Francisco Lima Filho, an economist at Banco ABC Brasil. He expects the central bank to raise interest rates by further 25 basis points at its June policy meeting, while most economists now anticipate no change. Beyond farming and factories, the central bank's index also captures services output and tax data on production, both of which grew 0.7% from the final three months of the year, reflecting resilient consumer spending amid a tight labor market. "Numbers today convinced us to push up the first quarter GDP forecast. From a still strong growth of 1% quarter over quarter to 1.3%, given the intense performance of not only agriculture but also all other main macro sectors," economists at UBS BB said in a note to clients. Official first-quarter GDP figures are scheduled to be released on May 30 by Brazil's statistics agency, IBGE. The positive numbers came even as the central bank pressed on with its aggressive inflation-fighting drive. By March, the bank had lifted interest rates by 375 basis points since kicking off the tightening cycle in September, and added another 50 basis points in May, taking borrowing costs to 14.75% - Brazil's highest in almost 20 years. In March alone, the IBC-Br rose a seasonally adjusted 0.8% from February, topping the 0.5% increase forecast in a Reuters poll. https://www.reuters.com/world/americas/brazil-q1-activity-jumps-13-grains-industry-offset-rate-hike-drag-2025-05-19/
2025-05-19 20:10
May 19 (Reuters) - Legislation advanced by Republicans in the U.S. House of Representatives last week could put 300 domestic solar and energy storage factories at risk and kill nearly 300,000 jobs, a top solar trade group warned on Monday. WHY IT'S IMPORTANT The analysis by the Solar Energy Industries Association comes amid a lobbying blitz aimed at convincing U.S. lawmakers to safeguard clean energy tax credits, which in the Republican plan would be phased out more quickly and face new restrictions on the use of Chinese-made components. Sign up here. KEY QUOTE "If this proposal becomes law, nearly 300 U.S. factories —mostly in red states — could close or never open, and we simply won't have the energy we need to power American innovation in AI and data centers," SEIA President Abigail Ross Hopper said in a statement. CONTEXT The proposed legislation targets key subsidies from former President Joe Biden's climate law, the Inflation Reduction Act, that support wind and solar power, hydrogen, and other climate-friendly technologies. Most of the solar and storage factories that benefit from the IRA tax credits are in Republican states that voted for President Donald Trump. BY THE NUMBERS The budget proposal would result in the loss of $220 billion in solar and storage investments by 2030, SEIA estimated. It would also cost 292,000 solar jobs, including 86,000 in manufacturing. Solar and storage, under existing policies, are expected to account for 73% of U.S. electric capacity additions between 2025 and 2030, making the sector critical to meeting soaring U.S. power demand. WHAT’S NEXT SEIA is urging Congress to revise the legislation, which still has several hurdles to clear before it can become law. https://www.reuters.com/sustainability/climate-energy/house-bill-would-choke-us-solar-investment-says-top-trade-group-2025-05-19/
2025-05-19 20:06
Brazil investigates link between zoo and poultry farm bird flu cases Genetic sequencing to determine virus relatedness, says Rosane Collares Vibra Foods incinerates waste to prevent virus spread, no comment from Tyson MONTENEGRO, Brazil, May 19 (Reuters) - Brazilian authorities hope to determine by Tuesday whether a confirmed outbreak of highly pathogenic avian influenza among wild birds in a zoo in the southern state of Rio Grande do Sul is connected with the country's first bird flu case on a commercial poultry farm in the same state, an official said on Monday. Rosane Collares, a director at the state's agriculture department, told Reuters that the genetic sequencing of the virus that killed around 100 waterfowl at the zoo in the town of Sapucaia do Sul would reveal if it is related to the outbreak in a commercial poultry farm in the town of Montenegro, where the H5N1 bird flu virus is already responsible for the death of 17,000 chickens, either directly from the disease or due to cautionary culling. Sign up here. The farm is located about 50 kilometers (30 miles) from the zoo. "We need to know if there is any relation or if it was an unfortunate coincidence," she said. No zoo animals were culled following confirmation that a Black-necked swan, one of the birds that died, had caught bird flu. The protocol for wild birds is different from the one guiding commercial flocks, and does not include the culling of animals that are not sick, Collares said. Collares said the animals that died all lived around one of the zoo's lakes. a On Saturday, teams from Vibra Foods, a Brazilian food processor backed by Tyson Foods (TSN.N) , opens new tab that runs the farm where bird flu was detected, buried waste that had first been incinerated to prevent the spread of the virus. Tyson and Vibra have not responded to several comment requests. According to Collares, health measures were taken to prevent further contamination within the zoo's perimeter, including isolation of the area and limited access for zoo workers. https://www.reuters.com/business/healthcare-pharmaceuticals/genetic-test-reveal-whether-brazils-bird-flu-case-is-linked-zoo-deaths-2025-05-19/
