2025-04-28 15:07
Finnish governor wants 'freedom of action' Says banks need 'sturdy' capital buffers FRANKFURT, April 28 (Reuters) - The European Central Bank may cut interest rates below the neutral level that keeps the economy in balance, ECB policymaker Olli Rehn said on Monday, adding that that euro zone inflation may come in lower than expected as a result of U.S. tariffs. The ECB cut its benchmark rate to 2.25% earlier this month, reaching the upper range of the 1.75%-2.25% range it sees as neutral, and governors are becoming more confident about a further reduction in June. Sign up here. Rehn, asked under what conditions the ECB may cut by more than its usual 25 basis points at a time, seemed to keep all options open. "We must analyse all options with an open mind and not a priori rule out rate cuts below the neutral rate," he told an event organised by LC Macro Advisors. "The full freedom of action relates not only to the timing of rate changes. In the current environment we should not restrict ourselves in advance." Rehn, Finland's central bank governor, added that underlying price pressures were easing and U.S. trade tariffs were mostly increasing downside risks to inflation. Rehn, who is part of a new task-force that will look at ways of simplifying rules for banks, also said there were excessive reporting burdens but "sturdy" capital requirements were still needed. "Simplifying is possible but we should avoid deregulation," he said. "We have to maintain sturdy capital buffers in order to maintain the resilience of the European banking and financial system." https://www.reuters.com/business/finance/ecb-may-cut-rates-below-neutral-rehn-says-2025-04-28/
2025-04-28 13:53
April 28 (Reuters) - Brazil's central bank head stressed on Monday the data-dependent stance of policymakers in their tightening cycle, emphasizing the need for confidence that monetary policy is achieving the desired effects amid heightened uncertainties. "It is essential to gather sufficient and diverse data to build this level of confidence," said Gabriel Galipolo at an event hosted by conglomerate J. Safra in Sao Paulo. Sign up here. He highlighted that the central bank does not focus on a single variable, aiming to collect as much data as possible to ensure the monetary tightening is driving inflation toward the target. Galipolo emphasized that current inflation remains above the 3% official goal, and the domestic economy continues to show "very incipient" signs of cooling. Brazilian policymakers began tightening in September, so far raising interest rates by 375 basis points to 14.25%. In March, they signaled a further increase at the upcoming meeting next month, though smaller than the last three, each of which was 100 basis points. According to Galipolo, the communication issued after the latest policy decision "held up well over the last 40 days," with the same understanding remaining in force. He stressed policymakers' concerns over current inflation dynamics, unanchored inflation expectations, the lag in monetary policy, and increased uncertainties that require caution. https://www.reuters.com/world/americas/brazils-central-bank-chief-stresses-data-driven-approach-tightening-cycle-2025-04-28/
2025-04-28 12:48
TORONTO, April 28 (Reuters) - Canadian wholesale trade most likely fell 0.3% in March from February, with declines in five of the seven subsectors, Statistics Canada said in a flash estimate on Monday. The estimate was calculated based on a weighted response rate of 64.8%. The average weighted response rate for the survey over the previous 12 months has been 82.2%. Sign up here. https://www.reuters.com/world/americas/canada-march-wholesale-trade-most-likely-down-03-statscan-flash-estimate-2025-04-28/
2025-04-28 12:46
ABIDJAN, April 28 (Reuters) - Above average rainfall last week across most of Ivory Coast's main cocoa growing regions is expected to boost the development of the April-to-September mid-crop, farmers said on Monday. Ivory Coast, the world's top cocoa producer, has entered its April to mid-November rainy season, a period when showers are abundant and often heavy. Sign up here. Farmers said that regular rainfall through May would help the development of young cherelles and small pods that will be ready to harvest in August and September, providing a boost in production at the tail end of the mid-crop. Cloudy weather in cocoa growing regions this week suggests more rain is likely for next week, farmers said. The western region of Soubre, southern region of Agboville, and eastern region of Abengourou all saw above average rainfall, while precipitation in the southern region of Divo was below average last week. Farmers across the regions said harvesting was picking up and noted an abundance of large pods on trees that would be ready to harvest in May and June. "With this weather, we'll have good quality beans," said Laurent Gnaly, who farms near Soubre where 36.1 mm of rain fell last week, 17.4 mm above the five-year average. In the centre-western region of Daloa, where rains were below average, and in the central regions of Bongouanou and Yamoussoukro, where rainfall was above average, farmers said growing conditions were improving but supply remained tight. "The grinders ask us for a lot of beans, but there's not much cocoa coming in from the bush," said Antoine Koffi, who farms near Yamoussoukro, which recorded 38.3 mm of rainfall last week, 16.7 mm above the average. The weekly average temperatures ranged from 27.6 to 30.6 degrees Celsius. https://www.reuters.com/markets/commodities/abundant-ivory-coast-rains-signal-promising-end-cocoa-mid-crop-farmers-say-2025-04-28/
2025-04-28 12:32
April 28 (Reuters) - UltraTech Cement (ULTC.NS) , opens new tab reported fourth-quarter profit below market expectations on Monday and said soaring summer temperatures are hitting construction activity in India and curbing cement demand. The company's finance chief Atul Daga said in an analyst call he sees challenging demand span April and May - the months of peak summer in India. Earlier in the day, India's biggest cement maker by capacity had mentioned "short-term challenges" in a statement, without elaborating. Sign up here. Shares of UltraTech closed 1% lower, after its consolidated net profit was below estimates at 24.82 billion rupees ($292 million) for the January-March period. Revenue, which took a marginal lift from the company's Kesoram (KSRM.NS) , opens new tab deal, was 230.63 billion rupees, in line with analyst expectations. Cement companies usually push to achieve more volume and meet fiscal year-end targets in the fourth quarter, when favourable weather conditions drive up construction activity. Although cement prices are recovering, they were on average still about 2% down from a year earlier in the fourth quarter, data from Ambit Capital showed. Daga said April prices "have seen improvement" compared to the end of March. UltraTech's volume jumped 17% year-on-year, within the 14%-21% range estimated by at least three brokerages who were rated the highest on LSEG for their earnings accuracy. The sector has so far furnished a mixed bag of earnings, with higher expenses weighing on ACC's (ACC.NS) , opens new tab profit, while cost controls helped Dalmia Bharat (DALB.NS) , opens new tab offset a hit from soft prices and lower volume. UltraTech had also announced in February it would spend 18 billion rupees on its foray into India's wires and cables sector, a move which drew analyst skepticism over its capital allocation. ($1 = 84.9870 Indian rupees) https://www.reuters.com/world/india/indias-ultratech-cement-misses-fourth-quarter-profit-estimates-2025-04-28/
2025-04-28 12:26
MADRID, April 28 (Reuters) - Play at the Madrid Open was suspended on Monday after a widespread power outage struck the Spanish capital, forcing 15th seed Grigor Dimitrov and his British opponent Jacob Fearnley off court as scoreboards went dark and overhead cameras lost power. The round of 32 match at the Manolo Santana Stadium where Dimitrov led Fearnley 6-4 5-4 had to be stopped due to a spidercam being left hanging too close to the court. Sign up here. Fourth seed Coco Gauff, who beat Belinda Bencic 6-4 6-2 to reach the quarter-finals, had her post-match interview at the Arantxa Sanchez Stadium cut short with the microphone losing power. Electronic line calling systems were also affected by the power cut, the ATP said, while spectators shared pictures of dark hallways at the Manzanares Park Tennis Center. "Two singles matches and one doubles match at the ATP Masters 1000 event were underway when power was lost at 12:34 p.m. local time," the ATP said on its official website. Matteo Arnaldi, who upset Novak Djokovic on Saturday, was up 6-3 3-2 against Damir Dzumhur when the round of 32 match was stopped. "We are working to restore normality as soon as possible," the Madrid Open account posted on X. Local media said the power outage also affected traffic lights, some airports and part of the Madrid underground. Spanish power grid operator Red Electrica said it was working with energy companies to restore power. https://www.reuters.com/sports/tennis/play-suspended-madrid-open-over-large-scale-power-outage-2025-04-28/
