2025-04-30 18:14

BRASILIA, April 30 (Reuters) - Brazil's economy created a net 71,576 formal jobs in March, Labor Ministry data showed on Wednesday, below the 200,000 jobs forecast in a Reuters poll of economists. The figure accounts for 2,234,662 jobs opened and 2,163,086 closed in the period, according to the ministry. Sign up here. It was the weakest figure for March since 2020, and for any month since last December. It compares with over 245,000 net formal jobs created in the same period of 2024, adjusted data showed. Earlier in the day, before the data was released, Labor Minister Luiz Marinho told state media that formal job creation in March had been weaker year-on-year. He noted that hiring was affected by a lower number of business days, particularly because this year's Carnival holiday fell in March, while last year it occurred in February. From January to March, a net 654,503 jobs were created in Brazil, down from 725,973 in the year-earlier period, according to adjusted data. https://www.reuters.com/markets/brazil-creates-fewer-than-expected-formal-jobs-march-2025-04-30/

2025-04-30 17:37

By Promit Mukherjee and David Ljunggren OTTAWA, April 30 (Reuters) - The Bank of Canada discussed whether to cut rates again earlier this month but decided not to given the uncertainty caused by U.S. tariffs, according to minutes of discussions released on Wednesday. Sign up here. After seven consecutive cuts since last June the Bank's governing council decided to hold rates on April 16 while saying it would be ready to move decisively if needed to keep inflation under control. It has shrunk rates by 225 basis points to 2.75%. "While there were differences in views, everyone agreed there was a great deal of uncertainty and the situation could change quickly," its summary of deliberations said. "They also agreed they should be less forward looking than usual," it added. U.S. President Donald Trump has imposed tariffs on a wide range of Canadian goods, prompting Ottawa to retaliate with its own set of countermeasures. The trade war has hit exports, demand, investments and jobs. Member favoring another cut cited the weakening economy and noted muted near-term inflation risks. "As long as medium- to long-term inflation expectations remained anchored, they had the flexibility to reduce the policy interest rate further to support growth," the minutes cited the members as saying. Those who wanted to hold rates said they needed more time to gather information on the impact of tariffs. "Continuing to lower the policy interest rate at this meeting could end up being premature in a context where past cuts were still working their way through the economy and where upward pressure on inflation from tariffs could come through quickly," the minutes said. Members identified two layers of uncertainty - the path of U.S. trade policy and impact of tariffs. This made it difficult for governing council to assess the probabilities of how the economy and prices would evolve. But they agreed their cuts were still working their way through the economy, which was contributing to stronger economic activity while keeping inflation close to 2%. "Members agreed that in the face of tariffs, monetary policy should support the economy while maintaining its primary focus on price stability," the deliberations said. (Reuters Ottawa editorial) Keywords: CANADA CENBANK/ https://www.reuters.com/world/americas/bank-canada-governing-council-mulled-cutting-rates-again-april-2025-04-30/

2025-04-30 16:58

MEXICO CITY, April 30 (Reuters) - Shares in Becle (CUERVO.MX) , opens new tab, the world's largest tequila producer, rose 3% on Wednesday, after it reported a 15% increase in first-quarter profits from a year ago, exceeding market expectations, and promised payouts for shareholders. In addition to the Jose Cuervo family tequilas, the company produces other spirits, including mezcal, whiskey, and gin. It attributed the net profit boost to lower input costs and exchange-rate tailwinds given the Mexican peso's depreciation, in a report published after the market close on Tuesday. Sign up here. Chief Financial Officer Rodrigo de la Maza said in a call with analysts on Wednesday the company would propose a cash dividend payment and an extension of its share repurchase program at the general shareholders meeting, scheduled for later in the day. He also reinstated the company's 2025 sales outlook, foreseeing a mid-single-digit sales growth. When asked if the sales outlook assumed foreign exchange would stay at current levels, he declined to disclose the company's rates expectations and how it would affect future results. Analysts said the results were strong. "Cuervo presented a positive quarterly report, mainly supported by the exchange rate effect that offset the contraction of volumes in all regions due to the industry weakness," Ve Por Mas analysts said in a note. https://www.reuters.com/business/retail-consumer/shares-mexican-tequila-maker-becle-rise-following-net-profit-surge-2025-04-30/

2025-04-30 16:57

MEXICO CITY, April 30 (Reuters) - An executive of Mexican telecoms giant America Movil said Wednesday that the company's capital expenditure for 2025 would be $6.7 billion, below the $7.1 billion capex in 2024. "It's only because we're seeing a slow down in all the economies. We have been investing a lot... with the slowdown that will reduce the capex to $6.7 (billion), that is what we decided yesterday," said finance chief Carlos Garcia in a call with investors following the company's first-quarter results. Sign up here. "I think the reduction this year will not increase the normal guidance of capex for next year.. I don't know, but we feel we can save some capex for the future," he added. Garcia said the company, which is controlled by the family of Mexican billionaire Carlos Slim, was also monitoring a telecoms law proposal by President Claudia Sheinbaum and offering its views to lawmakers. Sheinbaum has argued the controversial telecommunications bill would prevent foreign governments from broadcasting political or ideological propaganda in Mexico, while critics have said it would promote state control of the sector. America Movil on Tuesday reported a 39% jump in its first-quarter net profit to 18.70 billion pesos ($914.07 million, compared to the same period in 2024, citing an increase in operating profit and a decrease in financing costs. Revenues of the company came in at 232.04 billion pesos for the period, up 14% year on year and just short of an LSEG average forecast of 233.3 billion pesos. https://www.reuters.com/business/media-telecom/america-movil-forecasts-67-bln-capex-2025-2025-04-30/

2025-04-30 16:07

WASHINGTON, April 30 (Reuters) - The U.S. Treasury's primary dealers say they would prefer to end the federal debt ceiling, as it likely increases debt service costs and market volatility and may hurt the dollar's reserve asset status, minutes of the Treasury Borrowing Advisory Committee (TBAC) showed on Wednesday. "The Committee expressed that its preferred option would be for Congress to delegate broad authority to the administration to borrow as necessary to fund government obligations," the TBAC said in the minutes from its quarterly refunding meeting held on Tuesday. Sign up here. Treasury debt yields surged this month after Trump announced punishing "reciprocal" tariffs on many countries on April 2. The yields stabilized only after Trump paused his biggest increases on countries apart from China for 90 days. The Treasury on Wednesday announced plans to sell $125 billion worth of coupon debt in its quarterly refunding next week, raising $30.8 billion in new cash. The Treasury's borrowing had been constrained by the debt ceiling in the February-April quarter, causing Treasury to spend down its cash balance. The refunding will include $58 billion in three-year notes, $42 billion in 10-year notes and $25 billion in 30-year bonds. The Congressional Budget Office in March estimated that the Treasury could exhaust its borrowing capacity under the debt ceiling and risk a payment default as soon as August. Private forecaster Wrightson ICAP estimated this week that the Treasury could have enough leeway to pay obligations into the second week of September. But the TBAC minutes showed that the current debt limit process leads to large fluctuations in cash balance and short-term Treasury bill issuance to stay under the limit, creating volatility risks for the Treasury and for market participants. "The presenter also noted that the debt limit has not successfully promoted fiscal responsibility but has harmed the United States’ credit rating and could affect the country's reserve asset status," the TBAC said in the minutes. Republicans in Congress have regularly used debt ceiling standoffs to try to extract spending concessions in recent years. A debt ceiling extension expired on Jan. 1 and Treasury has been employing extraordinary cash management measures to continue borrowing until Congress takes action to raise or suspend it again. U.S. Treasury Secretary Scott Bessent told senators during his January confirmation hearing that questions over repealing the debt ceiling were "nuanced" but if President Donald Trump wants him to eliminate it, he will work with Congress to get it done. "Look, the United States is not going to default on its debt if I'm confirmed," he said at the time. "But I will tell you that, for people who don't understand the debt limit, it might be like taking out your handbrake in your car, that you can still hit the brakes, but it's one less feature." https://www.reuters.com/world/us/us-treasury-dealers-recommend-ending-federal-debt-ceiling-2025-04-30/

2025-04-30 14:49

NEW YORK/BOGOTA, April 30 (Reuters) - The International Monetary Fund said on Saturday it had set conditions for Colombia's access to its $8.1-billion Flexible Credit Line, a precautionary tool for crisis prevention and mitigation, effectively cutting access for the country from that cash. Colombia had access to a similar tool since 2009, but only made use of it once in 2020 when the pandemic wreaked havoc on the global economy. But the IMF move shines a fresh light on the country's fiscal issues, which have been troubling financial markets for months. Sign up here. Analysts said the implication of losing the FCL access was a rise in borrowing costs, which was already seen in an April 15 Eurobond offering. WHAT IS AN FCL? The FCL is a fund program that requires the applicant country to have strong economic fundamentals and institutions, and a willingness to keep both. It can last for one or two years and has no preconditions once triggered. To qualify for continued access to the program, a government needs a "very positive assessment of the country's policies" in a yearly visit by the IMF to check on policy and economic direction - internally called an Article IV Consultation, according to the fund's website. Countries should also follow criteria that include a track record of capital market access at favorable terms, have low and stable inflation, and data transparency. WHAT IS COLOMBIA'S FCL? The IMF approved Colombia's current FCL in April 2024. The South American country has had access to that type of program since 2009, tapping it once in 2020 with a then $5.4-billion draw to cover budget needs during the pandemic. Colombia's current $8.1-billion FCL was approved to replace the 2022 one. Bogota said it would treat the arrangement as "precautionary," meaning it does not expect to draw unless there is an unforeseen situation. WHY WAS COLOMBIA'S ACCESS CONDITIONAL? The two-year arrangement requires an Article IV visit that results in a report followed by a midterm review to make sure access to the facility remains uninterrupted. However, Colombia did not finalize an Article IV report with the fund. In visits to Bogota in mid-February and early April, engagement has been "close," according to the IMF. Between those visits, German Avila was sworn in as new finance minister. His predecessor resigned after three months amid clashes over budget cuts, and hours after a labor reform championed by President Gustavo Petro was rejected by lawmakers. "Engagement continues as the authorities work on plans to reduce the fiscal deficit this year and going forward," an April 18 IMF staff statement said, adding the government was working on the policies underpinning projected revenue gains and necessary spending adjustments to meet the overall fiscal deficit target. The government announced this year it would cut its 2025 budget by 12 trillion pesos ($2.85 billion) to 511 trillion pesos, but an independent office said this month an additional adjustment of some 46 trillion pesos ($11 billion) is needed to meet the fiscal rule. While the government said it had complied with the fiscal rule last year citing technicalities, analysts and experts said that was not the case. WHAT NEXT? The IMF and Colombia remain engaged in Article IV consultations but until those are completed, there will not be an FCL midterm review. It is unclear whether Colombia's fragile fiscal situation would allow it to pass the review. Colombia's spreads to comparable U.S. debt have widened some 100 basis points to nearly 400 bps over the past 12 months, sharply underperforming regional peers Chile and Peru. Its $3.8-billion offering this month yielded a 7.5% coupon on the five-year debt and 8.75% for 10-year, both considered high. Colombia's midterm fiscal framework, a roadmap for the country's indebtedness for this year and next, must be published by the government by mid-June. https://www.reuters.com/world/americas/why-did-imf-block-colombias-access-credit-line-2025-04-30/