2025-04-24 23:47

MEXICO CITY, April 24 (Reuters) - Brazilian fintech Nubank (NU.N) , opens new tab said on Thursday that its Mexico arm received regulatory approval from the Mexican National Banking and Securities Commission to begin the process of becoming a full-service bank. In a statement, Nubank, one of the fastest-growing digital lenders in the world, said the process to secure the banking license in Mexico now requires a "rigorous regulatory audit" before obtaining final authorization. Sign up here. The fintech launched a no-fee credit card in Mexico in 2020 and added savings accounts in 2023, announcing later that year that it was seeking a Mexican banking license to expand its services to be able, for example, to handle direct deposits of salaries for customers and higher deposit limits. Nubank currently already has 10 million customers in Mexico, its founder and CEO David Velez said in a company statement. Velez called the transition into a bank a "landmark achievement that we trust will stimulate further innovation and competition in Mexico." https://www.reuters.com/world/americas/nubank-clears-major-hurdle-securing-mexico-banking-license-2025-04-24/

2025-04-24 23:34

BOJ will keep raising rates if inflation heads for 2%, Ueda says BOJ to scrutinise how data affects likelihood of meeting target No divergence in policymakers' view on tariff impact on growth BOJ set to keep rates steady next week, cut growth f'casts WASHINGTON, April 24 (Reuters) - Bank of Japan Governor Kazuo Ueda said on Thursday the central bank will continue to raise interest rates if underlying inflation converges toward its 2% inflation target as projected. But he said the central bank will scrutinise how various information, including on the potential economic fallout from higher U.S. tariffs, could affect the likelihood of durably achieving its price goal - a prerequisite for further interest rate hikes. Sign up here. Tariffs affect the economy through various channels such as by weighing on trade activity, cooling business sentiment and heightening market volatility, Ueda told a news conference after attending the Group of 20 finance leaders' gathering held during the International Monetary Fund and World Bank Group meetings in Washington. "Having exchanged views with policymakers from other countries, I felt that many of them roughly had the same view" on the way tariffs affect their economies, he said. Ueda said he will take into account the findings from his dialogue with global policymakers in constructing the BOJ's assessment on Japan's economy, and setting monetary policy. "We will continue to raise interest rates if underlying inflation gradually converges toward our 2% target, as we project," Ueda said. "But we would like to scrutinise various data that comes in, without pre-conception" in setting monetary policy, he said. Ueda's comments preceded the BOJ's policy meeting next week, when the central bank is expected to keep interest rates steady at 0.5% and downgrade its growth forecasts. The BOJ, which ended a decade-long massive stimulus programme last year, raised its short-term interest rate to 0.5% in January in the belief the economy was on the cusp of sustainably achieving the central bank's 2% inflation target. While Ueda has signaled the BOJ's readiness to keep raising rates, U.S. President Donald Trump's tariffs have complicated the decision on when and how far it can hike. The BOJ is likely to push back the timing of additional rate hikes as uncertainty triggered by U.S. tariffs has exacerbated downside risks to growth and inflation, a senior International Monetary Fund official said on Wednesday. In its World Economic Outlook, the IMF said it expects Japan's economy to expand 0.6% in 2025, down half a percentage point from its previous forecast in January, due largely to the hit from U.S. tariffs. https://www.reuters.com/business/boj-will-keep-raising-rates-if-inflation-converge-toward-2-governor-ueda-says-2025-04-24/

2025-04-24 23:32

South Korea seeks tariff exemption, offers cooperation on shipbuilding, energy Tariffs, economic security, investment, FX policy to be discussed South Korea warns upcoming election may affect negotiation process SEOUL/WASHINGTON April 25 (Reuters) - South Korea and the United States agreed to craft a trade package aimed at removing new U.S. tariffs before the pause on reciprocal tariffs is lifted in July, Seoul's delegation in Washington said after a first round of trade talks. The U.S. and South Korea had a "very successful" meeting on Thursday, U.S. Treasury Secretary Scott Bessent said afterwards. Sign up here. "We may be moving faster than I thought, and we will be talking technical terms as early as next week," he told reporters. Bessent and U.S. Trade Representative Jamieson Greer met with South Korean Finance Minister Choi Sang-mok and Industry Minister Ahn Duk-geun. Neither side provided details on possible areas of agreement, and the South Koreans offered a more measured assessment of the talks, calling them a good start but suggesting the process will take some time. South Korea said in a statement it requested exemptions from reciprocal and item-specific U.S. tariffs, and offered cooperation on shipbuilding and energy and in addressing trade imbalances. "I think we had a very good start today," Ahn said. "We also agreed to hold working-level talks next week to determine the scope and structure of talks, with the goal of producing a 'July package' by July 8." Choi said more talks will be held in South Korea on May 15-16 with Greer. "Discussions will focus on four key areas: tariffs and non-tariff measures, economic security, investment cooperation, and currency policy," Choi said. Despite U.S. optimism, trade experts expect the two sides to be unlikely to reach a deal before South Korea's June presidential election. "It seems that South Korea is in cautious mode, while the U.S. is on a fast track," said Heo Yoon, an international trade professor at Sogang University in Seoul. Former trade minister Yeo Han-koo said there is a discrepancy in how the two sides perceive the progress in negotiations, with South Korea suggesting that it may push for the trade package close to the July deadline, while Bessent flagged "an agreement on understanding" as soon as next week. "The term 'July package' suggested that Korea would not rush to a deal," Yeo said. "There is a question mark as to whether the U.S. has agreed to it." AUTOS IN FOCUS Bessent and other trade team members from President Donald Trump's administration met this week in Washington with foreign finance and trade officials looking to strike tariff deals on the sidelines of meetings of the International Monetary Fund and World Bank Group. South Korea, which faces 25% U.S. reciprocal tariffs, is among the first countries with which the Trump administration has initiated trade talks. The administration held its first face-to-face discussions last week with Japan, another key Asian ally that has been slapped with 24% tariffs. Bessent also met Japanese officials on Thursday. Choi said South Korea was focused in particular on the automobile sector, which faces the greatest negative impact. He also said South Korea's finance ministry and the U.S. Treasury would hold separate discussions on currency policy at the request of Bessent. Choi told South Korean reporters there was no mention of defence costs during the talks. Trump has previously said that sharing the cost of keeping U.S. troops in South Korea would be part of "one-stop shopping" negotiations with Seoul. But South Korea's foreign minister said defence costs are separate matters from trade talks. Ahn said there was also no mention of renegotiating a bilateral free trade deal signed in 2007 and revised during Trump's first term. The South Koreans asked for understanding from the Americans that the process could be affected by the "political schedule", including the looming June election, which was called after former president Yoon Suk Yeol was ousted for his role in imposing martial law briefly in December. Prime Minister Han Duck-soo, who is serving as acting president, has expressed willingness to reach a deal, saying the country will not fight back against Washington as it owes the U.S. for its recovery from the 1950-1953 Korean War. That has faced pushback from the main liberal Democratic Party who are favoured to win in the election, accusing the conservatives under Han of rushing talks for political gain. DP spokesperson Cho Seung-rae called on Han to "immediately stop" the negotiations. Political experts have also noted it may be difficult for South Korea to make any firm commitment on energy projects and defence costs under an acting president. "The prime minister of the impeachment government has no mandate from the Korean people to commit to a deal," Yeo said. Trump's energy security council plans to host a summit in Alaska in early June, when it hopes Japanese and South Korean officials will announce commitments to the Alaska LNG project, a source familiar with the matter said on Thursday. Ahn said he was not aware of a plan to announce any commitment from South Korea. South Korea is reviewing the project and in discussions about its feasibility with other major LNG importers like Japan, Taiwan and Vietnam. The United States also raised the issue of non-tariff barriers in the digital services sector that it had cited in a 2025 report, South Korea said. The U.S. report said South Korean legislation that required network usage payments, regulated competition, and restricted personal data transfers and location data exports amounted to non-tariff barriers in the digital services sector. https://www.reuters.com/en/south-korea-us-aim-package-deal-before-tariff-pause-ends-july-seoul-says-2025-04-24/

2025-04-24 23:29

RIO DE JANEIRO/SAO PAULO, April 24 (Reuters) - Brazilian miner Vale (VALE3.SA) , opens new tab reported a 17% decline in its first-quarter net profit on Thursday, hit by lower iron ore prices despite improved costs. Vale, one of the world's largest iron ore producers, posted a net profit of $1.39 billion for the quarter through March, slightly missing a consensus estimate of $1.68 billion by analysts polled by LSEG. Sign up here. The company said earnings were hit by a decline in iron ore prices but the impact was partially offset by its production cost-cutting measures and the Brazilian real's appreciation against the U.S. dollar. "We had a consistent start to the year, aligned with our objectives for management in 2025," CEO Gustavo Pimenta said in the earnings report, noting a good cost momentum. Vale posted adjusted core profit as measured by earnings before interest, taxes, depreciation and amortization (EBITDA) at $3.12 billion, down 9% and close to the $3.16 billion expected by analysts. The results came in line with expectations and cost performance was the highlight, Itau BBA analysts said. However, they added that "lower realized prices more than offset the improvement in volumes and lower costs in the yearly comparison". Vale's so-called C1 cash cost of iron ore fines, which measures production costs from the mines to the ports, fell 11% in the quarter to $21 per ton. The miner's operational report last week had shown iron ore volume production falling 4.5% due to heavy rainfall in Brazil, although Vale was able to increase sales volume with supply from inventories. Still, a 16% decline in market reference prices of iron ore, Vale's main product, weighed on its own sales prices and led to a 4% net revenue decline to $8.12 billion, marginally above analysts' estimate of $8.03 billion. Santander analysts said Vale presented "solid operational figures" but they were "already priced in". https://www.reuters.com/markets/commodities/brazilian-miner-vale-posts-17-drop-q1-net-profit-2025-04-24/

2025-04-24 22:57

BUENOS AIRES, April 24 (Reuters) - Argentina's state-run oil firm YPF (YPFDm.BA) , opens new tab has ruled out building an onshore natural gas liquefaction plant as it will instead rely on floating vessels for this process, YPF's chief executive said in an interview with local media. In the interview with Diario Rio Negro, CEO Horacio Marin said there would be no onshore plant and the three phases in its plan to export LNG would be through ships. Sign up here. "The time frames are much faster than on a land-based plant, and they're all turnkey projects so you know exactly what they will cost," Marin said. YPF is leading development of Argentina's Vaca Muerta formation, an area the size of Belgium holding the world's second-largest shale gas reserves and fourth largest for shale oil. Under the Southern Energy Project, YPF and other oil firms are planning by 2027 to start up Argentina's first liquefaction vessel with a capacity of 11.5 million cubic meters per day, and add another vessel the following year. It has also signed a deal with Shell (SHEL.L) , opens new tab under which the oil major will participate in the production, liquefaction and sale of LNG. YPF also recently signed a memorandum of understanding with Italy's Eni (ENI.MI) , opens new tab to develop upstream LNG facilities, including transport to two floating liquefaction facilities of some 6 million metric tons per year. https://www.reuters.com/business/energy/argentinas-ypf-rules-out-building-land-based-lng-plant-local-media-reports-2025-04-24/

2025-04-24 22:20

April 24 (Reuters) - Eastman Chemical (EMN.N) , opens new tab forecast second-quarter profit below Wall Street expectations on Thursday and said it would curtail expenses in response to market volatility resulting from President Donald Trump's tariff plans. Shares of the company were down 3.5% at $78.00 in extended trading. Sign up here. The chemical industry faces weak demand and high input costs, particularly in Europe, where a challenging regulatory environment has prompted companies to rethink their strategies. Trump's erratic trade policies further add to uncertainty for the industry. Earlier on Thursday, peer Dow (DOW.N) , opens new tab said it expects extended pressure on earnings due to persistent uncertainty. The company now expects second-quarter adjusted profit to be between $1.70 and $1.90 per share, below Wall Street expectations of $2.18 per share, according to data compiled by LSEG. Eastman also said it was increasing its cost reduction target to about $75 million, net of inflation, and reducing capital expenditures to around $550 million for 2025, compared to its previous forecast of $800 million. However, the chemical firm beat first-quarter profit estimates, thanks to strong performance at its Kingsport facility and improved selling prices for some of its products. Eastman's Kingsport, Tennessee facility utilizes advanced technology to convert plastic waste back into its original monomers, which could then be used to make new plastic products. The facility has the capacity to recycle about 110,000 metric tons annually. The company reported an adjusted profit of $1.91 per share for the quarter ended March 31, compared with analysts' average estimate of $1.89 per share, according to data compiled by LSEG. https://www.reuters.com/markets/commodities/eastman-chemical-forecasts-quarterly-profit-below-expectations-cuts-spending-2025-04-24/