2025-04-08 20:08
PANAMA CITY, April 8 (Reuters) - Panama has opened an investigation into a contract granted to Hong Kong-based CK Hutchison (0001.HK) , opens new tab for the operation of two ports in the Central American country, Attorney General Luis Carlos Gomez said on Tuesday. Gomez made the announcement after Panama's comptroller general criticized the contract, renewed in 2021, earlier this week. Comptroller Anel Flores said Panama "left $1.3 billion on the table," referring to tax incentives and benefits granted by the government to CK Hutchison. Sign up here. "This prosecutor's office is conducting an investigation initiated 'ex officio' for the alleged commission of a crime against public administration and other crimes against the State," Gomez said in a letter sent to Flores on Tuesday. The 25-year contract awarded to Panama Ports Company, in which CK Hutchison has a 90% stake, for the concession of the Balboa and Cristobal ports has been under audit since January. The audit is nearing completion, Flores said on Monday, adding that a lawsuit would be filed against government officials who authorized the contract. Since February, Panama's Supreme Court has also discussed the concession. The contract reviews are seen as possible roadblocks in a key $22.8 billion deal announced in March by a group led by U.S. investment firm BlackRock (BLK.N) , opens new tab to get access to CK Hutchison's port business in 23 countries, including the two ports in Panama. CK Hutchison and BlackRock did not immediately reply to requests for comment. BlackRock CEO Larry Fink, speaking earlier this week at a conference in New York, said the deal was not made for geopolitical reasons, but the company was aware that China would review it as much as other jurisdictions. Regulatory review of the deal could take nine more months, Fink said, adding he was optimistic it would be approved. China's embassy in Panama said on Tuesday in a social media post that it has and will continue respecting Panama's sovereignty, and added that the relationship between the U.S. and Panama should not be "excluding." If irregularities in the concession renewal are confirmed by Panama's government or the Supreme Court declares the contract to be unconstitutional, the concession could be revoked, lawyers and experts have said. https://www.reuters.com/world/americas/panamas-attorney-general-opens-investigation-over-possible-damages-by-ck-2025-04-08/
2025-04-08 19:54
BUENOS AIRES, April 8 (Reuters) - China is on a crash course with the United States over a major Chinese currency swap deal with Argentina that has buffered the South American country's depleted foreign reserve levels even as it seeks a new deal with the Washington-based IMF. In a talk at Miami Dade College , opens new tab late last week U.S. Special Envoy for Latin America Mauricio Claver-Carone slammed the long-standing $18 billion swap line as amounting to "extortion" by China and said Washington wanted to see it ended. Sign up here. On Tuesday Chinese foreign ministry spokesman Lin Jian, in a regular press conference, shot back at the United States, alleging that Washington was trying to "drive a wedge" between China and partners in Latin America. "Fair-minded people are able to tell who is extorting and coercing others and making trouble," he said in response to a question about Claver-Carone's comments. "Argentina's currency swap with China has for a long time played an important role in stabilizing its economy and finances, which is welcomed and well received in Argentina." China, the world's No. 2 economy that is facing a major trade war standoff with U.S. President Donald Trump, has a long-term swap agreement with Argentina, a serial defaulter that has been firefighting a sliding currency and dwindling foreign currency reserves for years. That swap line has come under scrutiny under Trump, an ideological ally of Argentina's libertarian President Javier Milei. Milei faces a tough juggling act, however, between his White House ally and China, which snaps up Argentine soy, beef and lithium. Argentina and China last year renewed the activated part of the currency swap through July 2026, which helped to defuse fears over a payment crunch. The central bank did say then it would gradually ramp that down to zero by mid-2026. Claver-Carone, asked about Argentina and its talks with the International Monetary Fund (IMF) over a new $20 billion loan program, said he hoped the talks ended in success, but that Washington was concerned about China's role in the country. "What we would like to see, eventually, is the end of the famous line of credit Argentina has with China," he said. "That line of credit is extortionate, and as long as they maintain that line of credit, China will always be able to extort." He did not give details about how the currency swap was extortionate, though the United States has long warned about what it calls Chinese debt diplomacy in Latin America. China says it offers tangible trade and investment to the region. https://www.reuters.com/markets/currencies/china-us-clash-over-major-argentina-currency-swap-line-2025-04-08/
2025-04-08 19:53
House budget plan could see $230 billion in SNAP cuts Conflict over the cuts will likely feature in budget and farm bill negotiations More than 41 million Americans receive SNAP benefits April 8 (Reuters) - Lawmakers clashed over the future of the nation's largest food aid program during U.S. House and Senate Agriculture Committee hearings on Tuesday, previewing a partisan fight over the issue in farm bill negotiations. The conflict over potential cuts to the Supplemental Nutrition Assistance Program has flared in the ongoing budget reconciliation process and could serve as a roadblock to passage of a new farm bill this year. Sign up here. The House Republican budget plan would have the chamber's Agriculture Committee cut $230 billion as part of government-wide spending cuts to make way for President Donald Trump's $4.5-trillion tax and border security agenda. Democrats fear those cuts would come from SNAP, which sends an average benefit of $187 to about 41 million low-income people monthly, according to U.S. Department of Agriculture data. Any cuts to SNAP, also known as food stamps, would come as food prices climb, and as food banks strain under the twin pressures of high demand and cuts from the Trump administration. SNAP cuts would also hurt farmers due to reduced spending on food, said Angie Craig, the top Democrat on the House Agriculture Committee, at Tuesday's hearing. "This cut would slash farm revenue by approximately $30 billion, on top of the markets they’re losing because of the dumbest trade war in history," she said. House Minority Leader Hakeem Jeffries has said Democrats will forcefully oppose any SNAP cuts in the budget plan. Glenn "GT" Thompson, the chairman of the House committee, has said he aims to avoid benefit cuts, though he and other Republicans spoke in Tuesday's hearing of the need to strengthen the program's work requirements. "We must preserve benefits for those truly in need but also ensure that SNAP guides participants to independence and self-sufficiency," Thompson said. Democrats argue that expanding work requirements amounts to a benefit cut because it shrinks enrollment in the program. The issue also came up in Tuesday's Senate Agriculture Committee confirmation hearing for two Trump nominees, including Stephen Vaden, his pick for USDA deputy secretary. Asked about work requirements, Vaden said SNAP benefits are meant to give "a helping hand" to those in acute need but that recipients should work their way out of the program. The House and Senate Agriculture Committees must each pass their own versions of a farm bill and reconcile them into one bill to be voted on by the full Congress. The 2018 farm bill expired in 2023 and has been twice extended as the committees struggle to find agreement on policies such as SNAP. The farm bill is a half-billion dollar spending package passed every five years that funds farm, conservation and nutrition programs. https://www.reuters.com/world/us/us-lawmakers-spar-over-food-aid-program-facing-uncertainty-2025-04-08/
2025-04-08 19:33
PARIS, April 8 (Reuters) - The European Union's securities watchdog warned on Tuesday that problems in the cryptocurrency industry could pose risks to broader financial stability in future, as the sector grows and as ties between it and traditional financial markets increase. The appeal for caution from the European Securities and Markets Authority (ESMA) comes as U.S. economic policies roil global markets and U.S. authorities look to remove some of the barriers between crypto and traditional banking sectors. Sign up here. "EU financial markets are, as we speak, under severe strain coming from the broader political and geopolitical developments," ESMA executive director Natasha Cazenave said in a speech to the European Parliament posted on the watchdog's website. Stock markets have tumbled since U.S. President Donald Trump unveiled a blizzard of tariffs last week, leading to a sharp drop in crypto prices too. However, asset prices had recovered some of those losses across markets on Tuesday. "Crypto-assets markets are still comparatively small. However, in the current market environment, turmoil even in small markets can originate or catalyse broader stability issues in our financial system," Cazenave said. ESMA, which has repeatedly warned about the risks of crypto, said the sector needed continued close monitoring, she added, while cautioning that risks to financial stability from crypto were not yet significant. Funds focused on crypto make up less than 1% of the EU fund universe, and ESMA noted that 95% of EU banks do not engage in crypto activities. ESMA's warning comes as Trump - whose family is building a crypto business - has called for an easing of crypto regulations. U.S. regulators have made it easier for banks to engage in crypto-related activities. Reuters reported on Tuesday that the U.S. Justice Department is disbanding its National Cryptocurrency Enforcement Team. A run on a stablecoin - a type of cryptocurrency typically pegged to the dollar - could impact the price of the financial assets used to back it, ESMA said, with potentially wider market consequences. https://www.reuters.com/technology/eu-markets-watchdog-warns-crypto-related-financial-stability-risks-2025-04-08/
2025-04-08 18:14
BUENOS AIRES, April 8 (Reuters) - The board of the International Monetary Fund (IMF) could discuss a pending loan deal with Argentina in a Friday meeting, local newspaper La Nacion reported on Tuesday, citing diplomatic sources. Argentina desperately needs the $20 billion deal to unlock investment-blocking capital controls, bolster depleted foreign reserves and come out of a tight inflationary pinch. Sign up here. https://www.reuters.com/world/americas/imf-board-could-discuss-argentina-deal-friday-la-nacion-reports-2025-04-08/
2025-04-08 17:44
Canadian dollar strengthens 0.3% against the greenback Trades in a range of 1.4145 to 1.4248 Ivey PMI falls to 51.3 in March Bond yields rise across the curve TORONTO, April 8 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Tuesday as investors weighed the prospect of negotiations globally over U.S. trade tariffs and the potential return of Canadian investment flows from abroad. The loonie was trading 0.3% higher at 1.4205 per U.S. dollar, or 70.40 U.S. cents, after moving in a range of 1.4145 to 1.4248. Sign up here. Canada last week avoided new duties on its goods as the U.S. unveiled a 10% baseline tariff on all imports to the United States and higher targeted duties on some of the country's biggest trading partners. The tariff exemption for goods that comply with the USMCA trade agreement between the United States, Mexico and Canada has helped the loonie outperform some major peers in recent days, said Mirza Baig, a foreign exchange strategist at Desjardins. "Repatriation flows from Canadian investors may also have helped stabilize the CAD," Baig said. Stock markets have tumbled this year on the prospect of U.S. trade tariffs upending the global economy. The latest month of Canadian portfolio flow data , opens new tab, for January, shows that domestic investors sold foreign equities at the fastest pace in nearly three years. U.S. President Donald Trump said that he is waiting to hear from China before duties of more than 100% take effect but other administration officials said they would not prioritize negotiations with the world's No. 2 economic power. Canadian economic activity expanded at a slower pace in March as employment declined and prices heated up, Ivey Purchasing Managers Index (PMI) data showed. The seasonally adjusted index fell to 51.3 last month from 55.3 in February. Canadian bond yields moved higher across the curve, tracking moves in U.S. Treasuries. The 10-year was up 3.6 basis points at 3.095%. https://www.reuters.com/markets/currencies/canadian-dollar-gains-investors-eye-potential-repatriation-flows-2025-04-08/
