2025-04-18 17:18
Daly says rate cuts should be gradual, patient Fed may hold policy tighter due to elevated inflation risks Trump's trade policy uncertainty has not slowed economic growth April 18 (Reuters) - San Francisco Federal Reserve President Mary Daly said on Friday that while she is still comfortable with a couple of interest rate cuts this year, rising risks of inflation mean the central bank may need to do less, especially given that uncertainty over President Donald Trump's trade policy has so far done little to disrupt still-solid U.S. economic growth. "Continuing to gradually reduce the policy rate with no urgency to react fast is the right thing to do," she said at an event held by the University of California, Berkeley’s Fisher Center for Real Estate & Urban Economics. "Ultimately, we made a single promise to the American people - I think you all remember what it was - we are going to restore price stability. That is the critical foundation of all other things we do." Sign up here. The Fed has held the policy rate steady in the 4.25%-4.50% range since December. Policymakers have generally said tariffs are likely to increase inflation and slow the economy. Many, including Fed Chair Jerome Powell, say they want to wait and see what actually happens on trade and other policies before making any adjustments, a view that Daly also embraced. The Fed's wait-and-see approach on interest rates has angered Trump, and on Friday a Trump adviser said the administration is studying options for firing Powell. Daly said it is possible the Fed could deliver more than two rate cuts this year if inflation drops faster than expected or the labor market falters. But it was clear she sees more danger on the other side of the coin. "Ultimately the economy is heading to where we wanted it to be, on a sustainable trajectory where we can bring the rate back to neutral," she said, adding that she estimates a "neutral" policy rate to be around 3%. "The one challenge, of course, is that inflation remains above our target and the risks to inflation are more elevated than they were a year ago, so the consequence of that is we might have to hold policy tighter for longer than we had thought." Very gradual progress on inflation, she said, requires a restrictive monetary policy stance; and a strong economy gives the Fed plenty of time to wait for more clarity on the total impact of the new administration's policies, which also include tax cuts, reductions to government spending, deregulation and immigration restrictions. So far, she said, the uncertainty over those policies has not slowed the economy. "We haven't heard a lot about pulling back and hunkering down," she said. "Uncertainty has not stalled out activity ... people are ready to engage." Daly noted that recent developments suggest Trump's tariff policy will not be as big, broad, or take as immediate effect as what was initially announced - factors that could reduce its impact on the economy. https://www.reuters.com/markets/rates-bonds/with-inflation-progress-slow-feds-daly-says-rate-cuts-may-need-wait-2025-04-18/
2025-04-18 15:20
RIO DE JANEIRO, April 18 (Reuters) - The board of Brazilian state-run oil company Petrobras (PETR4.SA) , opens new tab on Thursday approved plans to select a partner to restart operations at its fertilizer plants in northeastern Brazil, according to four sources familiar with the matter. But the move still hinges on resolving ongoing disputes with current leaseholder Unigel (UNX.ASE) , opens new tab, added the sources, who requested anonymity as the decision has not yet been made public. Sign up here. Chemical company Unigel was demanding compensation from Petrobras for losses on the plants, as previously reported by Reuters, with the impasse marking a setback for President Luiz Inacio Lula da Silva's plans to reduce Brazil's dependency on imported fertilizer. As an agricultural powerhouse, Brazil is among the world's top consumers of fertilizers, more than 80% of which it imports. Petrobras leased the two nitrogen fertilizer plants, located in the states of Bahia and Sergipe, to Unigel in 2019 under a 10-year agreement. However, both facilities have been shut down since 2023, with Unigel citing unfeasible operating conditions due to high natural gas prices in Brazil. Unigel has yet to respond to Petrobras following the board decision, the sources said. Petrobras declined to comment when contacted by Reuters. Unigel did not immediately respond to a request for comment. The two companies are currently engaged in arbitration proceedings related to the lease contract, including disagreements over the shutdown of operations, Unigel's investments, and gas supply terms. A formal tender can move forward only if a negotiated settlement is reached, the sources said. "We approved the tender process, but for it to happen, the arbitration must be resolved. Without that, we can't move ahead," one company source emphasized. A second source said that if the disputes are fully resolved, Unigel itself could take part in the upcoming bidding process to resume operations at the plants. https://www.reuters.com/markets/commodities/petrobras-approves-tender-restart-fertilizer-plants-brazils-northeast-say-2025-04-18/
2025-04-18 14:57
MOSCOW, April 18 (Reuters) - The Philippines granted access for Russian beef and beef offal to its market, authorising two Russian companies for imports, Russian agriculture watchdog said on Friday. The Philippines imported 1.17 million metric tons of meat last year, about a 10% increase compared with 2023, according to the Food and Agriculture Organization, with Brazil, the United States and Spain as top exporters. Sign up here. Russia is seeking to boost agriculture exports by 50% by 2030, diversifying their geographical destinations. Russia is currently exporting beef to China, Belarus and Saudi Arabia. Beef exports from Russia rose by 14% in 2025. "Any new market is important for Russian producers as an opportunity to diversify supplies and respond to changes in demand," Sergei Yushin, head of Russia's National Meat Association lobby group, said. https://www.reuters.com/markets/commodities/russia-gains-access-philippines-beef-market-watchdog-says-2025-04-18/
2025-04-18 14:53
KYIV, April 18 (Reuters) - Following is the complete text of a memorandum of intent signed on Thursday by Ukraine and the United States, confirming their intent to conclude a deal on jointly developing Ukrainian natural resources. The text below was posted on Friday on the website of the Ukrainian government. Sign up here. MEMORANDUM OF INTENT BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE GOVERNMENT OF UKRAINE TO FINALIZE FORMAL AGREEMENT ON ECONOMIC PARTNERSHIP AND RECONSTRUCTION INVESTMENT FUND WHEREAS the United States of America has provided significant financial and material support Ukraine since Russia's full-scale invasion of Ukraine in February 2022; WHEREAS the American people desire to invest alongside the Ukrainian people in a free, sovereign and secure Ukraine; WHEREAS the United States of America and Ukraine desire a lasting peace in Ukraine and a durable partnership between their two peoples and governments; WHEREAS the United States of America and Ukraine recognize the contribution that Ukraine has made to strengthen international peace and security by voluntarily relinquishing the world's third largest arsenal of nuclear weapons; WHEREAS the United States of America and Ukraine intend to establish a reconstruction investment fund as part of an economic partnership between the two peoples and governments; WHEREAS the United States of America and Ukraine have held highly productive technical discussions in Washington, D.C. as recently as April 11-12, 2025, in order to finalize negotiation of an agreement to establish a reconstruction investment fund; WHEREAS the United States respects Ukraine s intention to avoid conflicts in the drafting of the agreement with Ukraine's obligations under European Union accession or agreements with international financial institutions and other official creditors; WHEREAS, without prejudice to any remaining political or legal procedures required to complete the arrangement, Ukrainian Prime Minister Shmyhal will visit Washington, D.C. the week of April 21, 2025, to meet with U.S. Treasury Secretary Bessent and lend high-level support to the conclusion of technical discussions on the terms of an agreement establishing a reconstruction investment fund. Negotiating teams are expected to report on the progress by the April 26, 2025, with the aim of completing discussions by that date and signing as soon as possible; and NOW, THEREFORE, as evidenced by the signatures set forth below, the Government of the United States and the Government of Ukraine enter into this Memorandum of Intent to work expeditiously towards the completion of the necessary documents in order to finalize the agreement forging an economic partnership between the American and Ukrainian peoples and establishing a reconstruction investment fund. This Memorandum of Intent may be signed in two or more counterparts, each of which shall be deemed an original, and all of which shall be deemed one instrument. https://www.reuters.com/markets/commodities/full-text-us-ukraine-memorandum-intent-minerals-deal-2025-04-18/
2025-04-18 13:50
April 18 (Reuters) - India on Friday said it has introduced enhancements to the domestic gas allocation policy with an aim to strengthen the framework for sustained availability and affordability of natural gas. Under these new directions, from the first quarter of fiscal 2026, domestic natural gas allocations for compressed natural gas (CNG) and piped natural gas (PNG) segments will be done on a two-quarter advance basis, the government said in a statement. Sign up here. Allocation will also now include new well gas (NWG) from nomination fields of the two state explorers, Oil and Natural Gas Corporation (ONGC.NS) , opens new tab and Oil India (OILI.NS) , opens new tab with auction-based allocation for new well gas being replaced with a quarterly pro-rata allocation, to ensure timely and reliable supply, the statement added. With both administered pricing mechanism gas (APM) and new well gas prices linked to Indian crude basket prices, which are calculated monthly, the government sees the allocation of domestic gas to make natural gas more affordable for CNG and PNG consumers after recent decline in crude prices. The allocation of natural gas sold under government-set APM has fallen over the years because of lower output at domestic wells. This has led to India's city gas distribution companies like Mahanagar Gas (MGAS.NS) , opens new tab, Indraprastha Gas (IGAS.NS) , opens new tab, Gujarat Gas (GGAS.NS) , opens new tab seeing their margins squeezed in last few quarters. These policy measures come at a time when the government has cut APM gas allocation to city gas distribution companies by 18%-20%, effective April 16. https://www.reuters.com/world/india/india-revamps-gas-policy-boost-affordability-supply-2025-04-18/
2025-04-18 12:45
Concessions awarded in 2019, part of effort to become energy hub Chevron says it remains committed to working with Egypt Ministry spokesperson gives assurances over summer gas supply CAIRO, April 18 (Reuters) - A number of multinational oil and gas companies including Chevron have exited their Red Sea oil and gas concession blocks after making no finds and have channelled their resources elsewhere in the country, the Egyptian petroleum ministry said. As part of its efforts to become an energy hub, Egypt awarded oil and gas exploration concessions in the Red Sea for the first time to Chevron, Shell and Abu Dhabi sovereign wealth fund Mubadala Investment Company in an international tender in 2019. Sign up here. "Companies have spent millions on their concessions within the agreed time frames," ministry spokesperson Moataz Atef told reporters on Thursday. He said: "One company spent $34 million on a contract that initially stipulated it will invest $10 million on exploration, but found no results," without naming said company. Chevron confirmed it has relinquished its operated 45% stake in Red Sea Block 1, located in the northern Red Sea. “Chevron remains committed to working together with the government of Egypt and our partners to support the growth of Egypt's energy sector through our exploration programs in the Mediterranean,” spokesperson Sally Jones said in a statement on Friday. Chevron operates the block along with other shareholders including Australia's Woodside Energy. Shell operates Block 3 with others including Woodside Energy and QatarEnergy. Atef did not name the other companies that he said had relinquished their Red Sea blocks. Shell declined to comment. Mubadala, Woodside Energy and QatarEnergy were not immediately available for comment. The petroleum ministry spokesperson stressed his ministry still believed the concession areas could be fruitful. He said both Shell and Chevron had applied for new concessions in the Mediterranean Sea, reaffirming their commitment to Egypt’s oil and gas sector, without giving further details. Chevron spokesperson Jones said it had interest in three other exploration blocks in Egypt, including two as an operator in the Mediterranean. In January 2024, Egypt's gas production was 4.6 billion cubic meters of gas. Despite pushing for further increases, production remained on a downward trend, recording 3.6 billion cubic meters in January 2025, data from the Joint Organisations Data Initiative show. Regarding energy supply, Atef sought to give assurances that Egypt would be able to meet rising electricity demand this summer. "By the summer, we will have three to four floating storage and regasification units to help stabilize the supply of natural gas," he said, adding that LNG shipments have been secured, while an emergency plan is in place to address any unexpected demand spikes. Last summer, Egypt faced power shortages exacerbated by high cooling demand. The country resorted to load-shedding and imports costing around $1.18 billion. https://www.reuters.com/business/energy/chevron-other-companies-exit-egypts-red-sea-concessions-redirect-resources-2025-04-18/
