2025-05-02 13:17

LONDON, May 2 (Reuters) - Britain is to restrict consumers' use of credit cards to buy crypto and their access to crypto lending products, the regulator said on Friday, a move aimed at improving protection as cryptoassets are regulated for the first time. The finance ministry this week said it would bring cryptocurrencies under compulsory regulation, with exchanges, dealers and issuers all coming under the existing rulebook. Sign up here. Crypto trading has exploded in popularity, with around 7 million people - about 12% of the adult population - owning cryptoassets, but it remains largely unregulated, the Financial Conduct Authority (FCA) said. The regulator maintains consumers "should be prepared to lose all their money" if they invest. Announcing new draft laws to regulate the sector, the government said it wanted to crack down on "bad actors" while supporting legitimate innovation in the burgeoning industry. The FCA is now looking at introducing curbs on retail investors using borrowed funds for crypto. "We are considering a range of restrictions, including restricting the use of credit cards to directly buy cryptoassets, and using a credit line provided by an e-money firm to do so," it said in a paper seeking feedback on its proposals. Consumers would still be free to use borrowed money to buy stablecoins, digital currencies that aim to keep a fixed value relative to other assets such as the U.S. dollar, issued by FCA-regulated companies. The FCA, citing a survey it commissioned, said 14% of crypto investors had used credit to buy crypto last year, up from 6% in 2022. The regulator is also considering restrictions on the lending and borrowing of cryptoassets, including running credit checks and testing consumers' investment knowledge and experience. Cryptoasset lending involves the owner loaning their crypto in return for a yield, while cryptoasset borrowing sees customers get loans in crypto that are later paid back with interest. While a small part of the market, cryptoasset lending and borrowing presented "risks of significant harm", the FCA said, including loss of ownership, liquidity risks, limited borrower creditworthiness checks and a lack of consumer understanding. Institutional investor access would remain, it added. The regulator will also seek to improve transparency and consumer understanding of 'staking' - locking digital tokens in a blockchain network in return for rewards. A survey the FCA commissioned found 27% of UK adults who own crypto have used staking. Hannah Meakin, partner at law firm Norton Rose Fulbright, said the FCA was trying to balance innovation with appropriate oversight, "yet this is no easy feat and the proof will be in the pudding as to whether they can get this balance right." https://www.reuters.com/technology/britain-bar-consumers-borrowing-buy-crypto-under-new-regime-2025-05-02/

2025-05-02 13:15

May 2 (Reuters) - U.S. job growth slowed marginally in April, but the outlook for the labor market is increasingly darkening as President Donald Trump's aggressive tariff policy heightens economic uncertainty. Nonfarm payrolls increased by 177,000 jobs last month after rising by a downwardly revised 185,000 in March, the Labor Department said on Friday. Sign up here. Economists polled by Reuters had forecast 130,000 jobs added last month after a previously reported 228,000 advance in March. The unemployment rate held steady at 4.2%. It is too early for the labor market to show the impact of Trump's on-and-off again tariffs policy. Amid the uncertainty, the Federal Reserve is expected to keep benchmark interest rates in the 4.25%-4.50% range next week. Economists expect companies will reduce hours before resorting to mass layoffs. MARKET REACTION: STOCKS: S&P 500 E-minis added to gains and were up 0.85%, pointing to a solid open on Wall Street BONDS: The yield on benchmark U.S. 10-year notes rose to 3.2676%, the two-year note yield rose to 3.744% FOREX: The dollar index pared a loss and was 0.30% lower, while the euro extended 0.27% higher COMMENTS: MARK MALEK, CHIEF INVESTMENT OFFICER, SIEBERT NXT, NEW YORK “We are expecting a slow decline in a non-farm payroll growth and while it's not positive by any means it's better than could've been expected. I think there were whisper numbers around there that were significantly less and I think people were somewhat braced for a bigger potential drop. The unemployment rate remains the same that was pretty positive.” ROBERT PAVLIK, SENIOR PORTFOLIO MANAGER, DAKOTA WEALTH, FAIRFIELD, CONNECTICUT "The economy isn't collapsing as people were worried about. We came in better than expected, both on the nonfarm payrolls report itself, but then it didn't show any real increase to average hourly earnings and so that came in a little bit lighter than expected. So that takes the concerns of wage pressures a little bit out of the picture." "The market likes the news. There'll be some out there that will point to a lagging indicator the fact that the Liberation Day sort of came and didn't necessarily get completely factored into non farm payrolls. But I really wouldn't worry too much about that yet. I would focus more on the positive aspect of this report -- the positivity that the US economy is continuing to move forward and still healthy enough, not gangbusters, but still healthy enough." MARK MALEK, CHIEF INVESTMENT OFFICER, SIEBERT NXT, NEW YORK “The numbers are holding up: so obviously the survey was worth for 138,000 and we came in slightly higher but last month was revised significantly downward. I think it just reflects what the consensus is expecting. We are expecting a slow decline in a non-farm payroll growth and while it's not positive by any means it's better than could've been expected. I think there were whisper numbers around there that were significantly less and I think people were somewhat braced for a bigger potential drop. The unemployment rate remains the same that was pretty positive.” SAMEER SAMANA, HEAD OF GLOBAL EQUITIES AND REAL ASSETS, WELLS FARGO INVESTMENT INSTITUTE, CHARLOTTE, NORTH CAROLINA "We've reached a steady state for the labor market. We went from too hot to kind of just right in terms of job growth, in terms of wage growth, in terms of the unemployment rate. So again until something more meaningful changes with respect to the supply or demand for labor it’s fair to say that it’s going to just keep chugging along." "Probably the big risk to the downside is that trade tensions flare up again. At least right now with the 90-day delay there's still some hope that things get worked out." "Consumers are still spending and that's driving continued job growth. The number was better than expected for this time, but it was revised lower for last time so if you take the two of them together its basically kind of right in line. So, the labor market is almost acting exactly as expected. It’s just settling into normal." "If anything, it probably reinforces the Fed's stance of being on hold for longer because continued steadiness in the labor market is what they're pointing to as the reason why it might take them some time to cut." CHRIS ZACCARELLI, CHIEF INVESTMENT OFFICER FOR NORTHLIGHT ASSET MANAGEMENT IN CHARLOTTE (by email) "Markets breathed a sigh of relief this morning as the jobs data came in better than expected. While recession fears are still simmering on the back burner, the buy-the-dip dynamic can continue – at least until the tariff pause runs out. We’ve already seen how financial markets will react if the administration moves forward with their initial tariff plan, so unless they take a different tack in July when the 90-day pause expires, we will see market action similar to the first week of April. "If adjustments can be made and the new approach is more nuanced, with exemptions for activity that leads to the administration’s ultimate goals and more reasonable tariff levels, then the real economy can re-adjust and markets will take it in stride, however, we aren’t out of the woods yet, because it’s unclear how much different the US trade approach will be in the second half of 2025 versus what we’ve seen year-to-date." MELISSA BROWN, MANAGING DIRECTOR OF INVESTMENT DECISION RESEARCH, SIMCORP, NEW YORK " This is good employment data which suggests that the economy remains strong. The one thing it suggests is that, even though everybody has been so worried about stagflation, maybe we managed to continue to grow without growing so much that we ignite inflation. I don't know if this is necessarily going to change anything (interest rate cut bets) because we're still looking at a strong economy at least for now. We could see these numbers go down as the impact of tariffs really starts to make its way through the economy, but it's not there yet." PETER CARDILLO, CHIEF MARKET ECONOMIST, SPARTAN CAPITAL SECURITIES, NEW YORK “This trend remains positive. Basically, (this report) indicates you know that the labor market is stable for now.” “(March’s downward revision) makes this report even stronger.” “Hourly wages are positive, you know, and that gives the Fed more time to assess the inflationary impact of tariffs.” “The participation rate ticking up is probably not significant and probably due to the fact that total unemployment is still at 4.2%.” “The bottom line is this was stronger than we expected and that it probably means that the economy is still not in recession.” “The takeaway is this report supports the Fed staying on course at the next week's meeting and the Fed will likely continue to stay on hold.” “So that puts the June meeting in question again.” BRIAN JACOBSEN, CHIEF ECONOMIST, ANNEX WEALTH MANAGEMENT, MENOMONEE FALLS, WISCONSIN "Employment is holding in there, but manufacturing is feeling the pinch. The diffusion index for manufacturing - related to how many industries are growing versus shrinking - has dropped to 42. It’s back to the muddy recessionary conditions for manufacturing. In April there was a big jump in hours worked in retail and transportation as people made their last ditch efforts to buy goods before prices adjusted." LINDSAY ROSNER, HEAD OF MULTI SECTOR FIXED INCOME INVESTING, GOLDMAN SACHS ASSET MANAGEMENT (emailed comments) “Strong jobs data puts a spring in the Fed’s step. Despite an increasingly uncertain economic backdrop, the US labor market remained resilient in April with employment surprising to the upside and the unemployment rate remaining steady. In the here and now, solid labor market data provides the Fed with scope for patience. With the forward-looking outlook having deteriorated, however, today’s data feels somewhat backward looking and the risks remain that a weakening economy could see the Fed resume its easing cycle later in the year.” https://www.reuters.com/world/us/view-april-us-payrolls-growth-slows-before-full-tariff-impact-felt-2025-05-02/

2025-05-02 12:30

May 2 (Reuters) - Canadian oil producer Imperial Oil (IMO.TO) , opens new tab posted a rise in first-quarter profit on Friday, driven primarily by stronger margins in its refining and fuel sales business, sending its U.S.-listed shares up nearly 6% before the bell. Canadian producers have benefited from the completion of the Trans Mountain pipeline expansion project, which raised its capacity to 890,000 barrels per day. The pipeline offers producers the only export route to international markets bypassing the United States. Sign up here. "The upstream business continued to benefit from improved egress and narrower heavy oil differentials, while our downstream profitability continued to reflect the structural advantages of the Canadian market," CEO Brad Corson said. Imperial's results come amid a broader rebound in North American refining margins, as product demand remains resilient and supply remains tight due to global disruptions. Canada sends about 90% of its oil exports to the United States, mostly shipped via pipelines from the western province of Alberta to land-locked refiners in the U.S. Midwest. The future of this interdependence was thrown into turmoil after U.S. President Donald Trump announced tariffs on the country's neighbor in the north, a promise he briefly made good in February before rowing back most of the levies within a few days. Imperial Oil — majority owned by U.S. oil and gas major Exxon Mobil (XOM.N) , opens new tab — reported petroleum product sales of 455,000 barrels per day during the first quarter, compared with 450,000 bpd a year ago. The Calgary, Alberta-based company said synthetic crude oil average realization rose to C$98.79 per barrel, from C$93.51 per barrel a year earlier. It, however, reported a fall in its upstream production, total throughput volumes and refinery utilization rate. Imperial's net income rose to C$1.29 billion ($933.23 million), or C$2.52 per share, during the quarter ended March 31, from C$1.2 billion, or C$2.23 per share, a year earlier. ($1 = 1.3823 Canadian dollars) https://www.reuters.com/business/energy/canadas-imperial-oil-posts-rise-first-quarter-profit-2025-05-02/

2025-05-02 12:11

Exxon on track to meet annual share repurchase target Lower-cost production in Permian, Guyana helps boost earnings Oil and gas production up from a year ago Shares rise about 1% in pre-market trade HOUSTON, May 2 (Reuters) - Exxon Mobil (XOM.N) , opens new tab on Friday beat Wall Street's estimate for first-quarter profit as higher oil and gas production from Guyana and the Permian basin helped boost earnings. The largest U.S. oil producer paid $4.3 billion in dividends and repurchased $4.8 billion in shares during the quarter. The buyback figure puts Exxon on track to meet its annual share repurchase goal of $20 billion. Sign up here. "In this uncertain market, our shareholders can be confident in knowing that we're built for this," Exxon CEO Darren Woods said in a statement. Shares of Exxon, which have fallen 9% over the past year, rose about 1% in pre-market trading. The energy sector has faced a tumultuous start to the year after U.S. President Donald Trump's global tariff announcements stoked recession fears. Those concerns triggered a slump in oil prices because a weaker economy needs less energy to fuel it. At the same time, the OPEC+ group of oil producers has been increasing output, leading to more crude supply and further pressuring prices. Exxon reported a profit for the January-March quarter of $7.71 billion or $1.76 per share, beating analyst estimates of $1.73 per share, according to data compiled by LSEG. Exxon's results set it apart from rival U.S. oil major Chevron (CVX.N) , opens new tab, which said on Friday it would cut share repurchases during the second quarter. "(Exxon) appears to have reiterated guidance on the shareholder returns front, which should be expected given the company’s strong balance sheet," said Biraj Borkhataria, an analyst at RBC Capital Markets, in a research note. Global oil and gas production totaled 4.55 million barrels of oil equivalent per day (boepd) during the quarter, up from 3.78 million boepd in the same period last year. Exxon is the largest producer in the Permian basin, the top U.S. oilfield, and operates the lucrative Stabroek block off the coast of Guyana. Cost of supply in the Permian is less than $35 per barrel, the company has previously said, allowing it to make money even at lower oil prices. Higher production from the Permian and Guyana helped boost earnings from oil and gas production to $6.76 billion, up from $5.66 billion in the same period last year. Refining profits were $827 million, down from $1.38 billion a year earlier. Exxon has been locked in an arbitration battle with rival Chevron (CVX.N) , opens new tab over Chevron's planned $53 billion acquisition of Hess, which owns a 30% interest in a Guyana oil joint venture that is led by Exxon. Exxon and CNOOC (600938.SS) , opens new tab, the third partner in the consortium, argue they have a first right of refusal to purchase Hess' stake. A hearing in the arbitration case is scheduled for May 26 in London. https://www.reuters.com/business/energy/exxon-beats-wall-street-profit-estimate-boosted-by-guyana-permian-production-2025-05-02/

2025-05-02 11:52

LONDON, May 2 (Reuters) - Global food commodity prices increased in April, driven by higher cereal, meat and dairy product prices that outweighed falls in sugar and vegetable oils, the United Nations' Food and Agriculture Organization said on Friday. The FAO Food Price Index , opens new tab, which tracks monthly changes in a basket of internationally traded food commodities, averaged 128.3 points in April, up 1% versus the March estimate of 127.1 points. Sign up here. The April reading was also 7.6% higher than the same month a year ago but 19.9% below a March 2022 peak reached following Russia's full-scale invasion of Ukraine. For cereals, FAO's price index rose 1.2% from March as wheat prices edged up due to tighter exports from Russia, rice rose on stronger demand and corn stocks tightened in the United States. "Currency fluctuations influenced price movements in world markets, while tariff policy adjustments raised market uncertainty," the FAO added. Despite the April rise, the cereal price index was 0.5% below its year earlier level. Also driving food prices higher, the FAO's meat price index rose 3.2% last month, led by pig meat prices and firm import demand for bovine meat. The dairy price index rose 2.4% in April and jumped 22.9% versus a year ago as butter prices hit record highs thanks to declining inventories in Europe. By contrast, FAO's vegetable price index fell 2.3% last month due to a sharp decline in palm oil prices, while the sugar price index dropped 3.5% on fears over the uncertain global economic outlook. In a separate cereal report, FAO kept its forecast for 2025 world wheat production unchanged at 795 million metric tons, on par with 2024 levels. The agency decreased its estimate slightly for global cereal production in 2024 to 2.848 billion tons from 2.849 billion. (This story has been corrected to fix the figure to 2.848 billion from 4.848 billion in paragraph 11) https://www.reuters.com/markets/commodities/corrected-world-food-prices-increase-april-uns-fao-says-2025-05-02/

2025-05-02 11:48

DUBAI, May 2 (Reuters) - Two people died after a leakage incident in one of the units in the state run Bahrain Petroleum Co (BAPCO), and the situation was brought under control, Bahrain's interior ministry said on Friday. Sign up here. https://www.reuters.com/world/middle-east/two-dead-after-leak-bahrain-petroleum-company-bapco-unit-2025-05-02/