2025-05-13 18:04

RIO DE JANEIRO, May 13 (Reuters) - Brazilian state-run oil company Petrobras (PETR4.SA) , opens new tab said on Tuesday it will revise its five-year strategic plan due to lower crude prices, sending investors a message of austerity during its first-quarter earnings conference call. Lower Brent crude oil prices will require the firm to cut costs where possible while preserving investments for this year, according to executives. Sign up here. "When the price goes up, we feel more comfortable throwing ideas around. When the price goes down, it is time to tighten our belts," Chief Executive Magda Chambriard said. Chambriard noted that Brent prices at around $65 per barrel would require the firm to simplify its projects, adding that the current moment called for cost-cutting and austerity measures. The message marks a stark reversal from the one delivered by Petrobras since Brazilian President Luiz Inacio Lula da Silva took office in 2023 and pushed the company to invest more in order to create local jobs and boost Brazil's economy. In 2023, Petrobras unveiled a $102 billion strategic plan for the 2024-2028 period, in what was then called one of the largest in its history, only to boost it a year later to $111 billion for the 2025-2029 period. Now, the firm is enacting cost-cutting measures, Chief Financial Officer Fernando Melgarejo said, although he maintained that the capital expenditure for 2025 would be kept at the previously estimated $18.5 billion. "We have to look for all cost-reduction alternatives so that we can maintain capex," said Melgarejo. The executive said that before thinking about reducing investments, Petrobras would focus on cutting costs, simplifying ongoing projects and prioritizing projects that provide it with positive cash flow on a shorter-term basis. The firm will continue to explore other ways to cut costs, said Melgarejo, adding, "We are concerned about this moment, but quite optimistic about both the capacity to increase production and the resilience we have here." Petrobras on Monday reported a 48.6% year-on-year increase in first-quarter net profit, boosted by nonrecurring events, and announced about $2.1 billion in dividends. Sao Paulo-traded shares of the firm were up 1.5% on Tuesday, in line with the broader Bovespa stock index (.BVSP) , opens new tab. https://www.reuters.com/business/energy/brazils-petrobras-revise-strategic-plan-due-lower-oil-prices-2025-05-13/

2025-05-13 17:55

May 13 (Reuters) - U.S. President Donald Trump on Tuesday repeated his call for the Federal Reserve to lower interest rates, saying prices for gas, groceries and "practically everything else" are down. "No Inflation, and Prices of Gasoline, Energy, Groceries, and practically everything else, are DOWN!!! THE FED must lower the RATE, like Europe and China have done," Trump said on Truth Social. Sign up here. "What is wrong with Too Late Powell? Not fair to America, which is ready to blossom? Just let it all happen, it will be a beautiful thing!," Trump added, repeating criticism of Fed Chairman Jerome Powell. https://www.reuters.com/world/us/trump-calls-fed-cut-rates-saying-prices-practically-everything-are-down-2025-05-13/

2025-05-13 16:03

AMSTERDAM, May 13 (Reuters) - Some of the world's major currencies will try to compete with the dollar on the global stage and could even attract some investor flows but the dollar will stay the world's key currency for some time to come, Dutch central bank chief Klaas Knot said. Some investors have reduced their exposure to the dollar in recent months, worried that trade tensions and erratic policy by the U.S. administration will ultimately erode the greenback's global reserve currency status. Sign up here. But others argue that there is no alternative for now since the dollar market is far bigger than any other competitor, and the euro zone, the largest potential challenger, is simply too fragmented. "There will be competition between currencies," Knot, the head of the global Financial Stability Board, told a conference on Tuesday. "But I think there is simply no alternative yet for the role that the dollar plays." Knot, the longest serving member of the European Central Bank's Governing Council, argued that investors could reduce their dollar exposure but that in itself would not dethrone the currency. "The starting point is that most international investors today are overweight in U.S. dollar because of the returns they've seen over the last 10 years," Knot said. "Maybe you will see a move for the more neutral weighing." The euro zone could make its own currency a more attractive financial instrument but that would require a great deal of internal structural work to revive long-stalled integration efforts, he said. "The daily turnover in 10-year US Treasuries is around 900 billion euro while the daily turnover in 10-year Bund is 30 billion," Knot said. "That tells you something about the liquidity of the market and the capability to hedge your risk." https://www.reuters.com/business/finance/trade-uncertainty-lowers-growth-inflation-near-term-ecbs-knot-says-2025-05-13/

2025-05-13 14:18

RIYADH, May 13 (Reuters) - Saudi Aramco will sign on Tuesday memoranda of understanding with U.S. liquefied natural gas producer NextDecade (NEXT.O) , opens new tab and utility firm Sempra (SRE.N) , opens new tab, Aramco's chief executive said, as the oil giant expands in the LNG market. "The U.S. today, in terms of gas, is almost 100 billion (dollars) in sales ... and it is continuously increasing," Aramco's CEO Amin Nasser told the U.S.-Saudi Investment Forum in Riyadh. Sign up here. "The U.S. is really a good place to put our investment," he added, noting that under the MoUs Sempra and NextDecade would supply around 6.2 million tons of LNG to Aramco. The United States is already the world's largest exporter of LNG and producers have plans in place that would double capacity in coming years. NextDecade last month signed a deal with a subsidiary of Aramco, which is seeking to become a big player in the LNG market, under which the U.S. firm will supply the superchilled gas from its Rio Grande facility for 20 years. "We do have other investments. So we're looking at, by 2030, almost seven and a half million tons of LNG," Nasser noted, speaking of expansion plans. Nasser also said that one of the investments that Aramco plans to sign on Tuesday involved an expansion of the Motiva Port Arthur's refinery in the U.S., noting the oil giant would invest $3.4 billion in the refinery. https://www.reuters.com/business/energy/aramco-sign-mous-with-nextdecade-sempra-ceo-says-2025-05-13/

2025-05-13 14:07

First crypto firm to be included in the benchmark index Share jump adds $8 billion in market value Set to replace Discover Financial May 13 (Reuters) - Coinbase Global's (COIN.O) , opens new tab shares jumped nearly 15% on Tuesday after the cryptocurrency exchange became the first digital asset player to be included in the benchmark S&P 500 index (.SPX) , opens new tab. It will replace credit card issuer Discover Financial (DFS.N) , opens new tab, which is being acquired by Capital One (COF.N) , opens new tab. The move will be effective before trading begins on May 19. Sign up here. The move marks a major milestone for a sector that was once restricted to the fringes of the financial world. "It is a watershed moment for Coinbase and the industry. It sets an example for other crypto companies to go public and earn a seat in the S&P 500," Oppenheimer analyst Owen Lau said. With surging institutional interest, crypto has rapidly moved into the mainstream, especially after President Donald Trump promised a lighter regulatory touch. "We believe S&P 500 inclusion will benefit Coinbase for a while as institutional investors take time to prepare to get into the stock," Oppenheimer analysts noted after raising price target to $293. In early trade, the stock hit its highest in nearly three months, adding more than $8 billion to the market value of the cryptocurrency exchange. The inclusion could also boost demand for Coinbase shares, as funds tracking the benchmark index would need to add the company to their portfolios. Last week, Coinbase reported a drop in first-quarter profit. However, analysts have said that a recovering market could boost its momentum. The company has been active in expanding its institutional investor base and has also taken steps to get a foothold in non-U.S. markets, strengthening its position as the largest publicly traded cryptocurrency exchange in the world. It said last week it would buy derivatives exchange Deribit in a $2.9 billion deal to expand into the crypto options markets. "Substantial dry powder positions Coinbase very well to acquire another leader in this space if opportunities arise," Oppenheimer analysts said, while betting on a potential acquisition of a prediction market such as Polymarket. Shares of the company have lost nearly 17% in 2025, as of their last close. https://www.reuters.com/business/coinbase-shares-jump-addition-sp-500-index-2025-05-13/

2025-05-13 12:48

May 13 (Reuters) - Major brokerages have scaled back their U.S. recession forecasts following a temporary tariff truce between the U.S. and China, which has fueled optimism for easing global trade tensions. Goldman Sachs reduced its U.S. recession forecast to 35% from 45%, marking the first major brokerage to do so, while Barclays dismissed recession risks entirely and J.P. Morgan placed the probability below 50%. On Monday, the U.S. and China agreed to reduce tariffs on each other's imports for 90 days., with the U.S. lowering its tariffs on Chinese goods to 30% from 145% and China cutting duties on U.S. imports to 10% from 125%. Sign up here. Global brokerages had raised their odds of a U.S. and global recession last month as tariff concerns threatened to weaken business confidence and slow growth. Goldman also hiked its 2025 U.S. GDP growth forecast by 0.5 percentage points to 1%, it said in a note on Monday. With the growth outlook potentially improving, Goldman now expects a total of three rate cuts from the Federal Reserve in 2025 and 2026. It sees one reduction in December instead of July and the remaining in March and June next year. The brokerage had earlier predicted three rate cuts for this year itself. "The rationale for rate cuts shifts from insurance to normalization as growth remains somewhat firmer, the unemployment rate rises by somewhat less, and the urgency for policy support is reduced," Goldman said. Barclays and J.P. Morgan have aligned with Goldman Sachs in forecasting just one Federal Reserve rate cut in December 2025. Previously, Barclays had projected two rate cuts in July and September, while J.P. Morgan anticipated a single reduction in September. Goldman Sachs additionally raised the year-end target for the S&P 500 index (.SPX) , opens new tab to 6,100 points from 5,900, citing lower tariff and recession risks, according to a separate note. The index closed at 5,844.19 points on Monday. Citigroup, meanwhile, pushed its expectations for a Fed rate cut to July from June, it said on Monday. https://www.reuters.com/markets/us/goldman-sachs-cuts-us-recession-odds-35-45-trade-truce-optimism-2025-05-13/