2025-04-02 20:27
BRASILIA, April 2 (Reuters) - Brazil's central bank governor Gabriel Galipolo said on Wednesday that unblocking monetary policy transmission channels is a generational challenge in the country which will require a series of long reforms. "There's no silver bullet," he said at an event to celebrate the bank's 60th anniversary. Sign up here. Galipolo reiterated that Latin America's largest economy is showing greater dynamism than expected, despite the restrictive interest rate level, suggesting an obstruction in monetary policy transmission channels not seen in other countries. According to Galipolo, subsidies remain a factor in Brazil's economy, with implications for monetary policy. The central bank kicked off an aggressive tightening cycle in September, raising interest rates by 375 basis points to 14.25% in a bid to bring inflation back to its 3% target. Annual inflation through mid-March hit 5.26%. Last month, policymakers signaled another, albeit smaller, hike at the upcoming May policy meeting, emphasizing the need to cool the economy to curb inflation. https://www.reuters.com/world/americas/brazils-central-bank-chief-sees-need-reforms-unblock-monetary-policy-2025-04-02/
2025-04-02 20:21
MEXICO CITY, April 2 (Reuters) - Mexico lowered its estimate for average crude oil production for this year by 129,000 barrels per day (bpd), citing a "prudent approach" that takes into account the trajectory of the first months of the year. This would bring the country below the ambitious 1.8 million bpd target set by President Claudia Sheinbaum. Sign up here. In its revised estimate, the finance ministry estimated in its preliminary budget criteria published late on Tuesday that production will average 1.762 million bpd for this year and then increase to 1.775 million bpd next year. It takes into account the "development of new strategic projects and the eventual incorporation of additional fields if exploration proves favorable," according to the document. The treasury department specified, in response to a Reuters inquiry, that the new projections include crude oil and condensate production from the state company Pemex and private companies operating in the country. Pemex remains by far the largest producer, and its dominant position was strengthened even further by a recently approved energy reform. However, Pemex has failed to halt the sustained decline. Production, including partners, has averaged 1.619 million bpd in the first two months of the year, official data shows. Burdened with tens of billions of dollars in financial and provider debt, the government has said that new contracting schemes for private companies will allow the state company to increase production and reach the 1.8 million bpd target. https://www.reuters.com/business/energy/mexicos-finance-ministry-estimates-crude-oil-production-129000-bpd-below-target-2025-04-02/
2025-04-02 20:20
Trump unveils 10% baseline tariff on all imports at key speech S&P, Nasdaq futures reverse gains, portend big drops on Thurs Indexes up before speech: Dow 0.56%, S&P 500 0.67%, Nasdaq 0.87% April 2 (Reuters) - U.S. stock indexes finished higher after a choppy trading session on Wednesday, falling early and then rebounding as investors made last-minute bets to position themselves ahead of U.S. President Donald Trump's sweeping tariff announcements. Trump began speaking after Wall Street closed, and both S&P 500 futures and Nasdaq futures reversed gains as investors blanched at his sweeping tariff plans. S&P 500 futures were 1.6% lower as he spoke, with Nasdaq futures down 2.4%. Sign up here. This suggested investors expect deep losses when Wall Street opens on Thursday. Trump's sweeping orders included imposing a 10% baseline tariff on all imports to the U.S. and higher duties on some of the country's biggest trading partners. Volatility has gripped U.S. markets in recent weeks as investors speculated about the scope of tariffs and their impact on the global economy, inflation and corporate earnings. The CBOE Volatility Index (.VIX) , opens new tab, known as Wall Street's fear gauge, has remained for the last three sessions around a level last seen in mid-March. Trading in that index closes at 4:15. Some tariffs, including on steel, aluminum and autos, had already been announced, although Trump unveiled the specifics of his tariff policy during a White House Rose Garden ceremony at 4 p.m. ET (2000 GMT). "Words from presidents matter," said Christopher Wolfe, president and chief investment officer of Pennington Partners & Co. "They can, and do, change policy and the way corporate America responds to things. That's the weight we are all feeling now." Ahead of the speech, Wolfe said much of the markets' response would depend on whether investors viewed it as a measured economic policy shift or a string of seemingly arbitrary tariffs that risk unintended consequences. Before Trump began speaking, the Dow Jones Industrial Average (.DJI) , opens new tab rose 235.36 points, or 0.56%, to close at 42,225.32, the S&P 500 (.SPX) , opens new tab gained 37.90 points, or 0.67%, to 5,670.97, and the Nasdaq Composite (.IXIC) , opens new tab climbed 151.16 points, or 0.87%, to 17,601.05. Big-tech names offered support to benchmarks on Wednesday. Tesla (TSLA.O) , opens new tab jumped 5.3% after Politico reported that Trump has told members of his Cabinet and other close contacts that his billionaire ally Elon Musk, CEO of the electric vehicle maker, will soon step back from his government role. This helped reverse earlier declines triggered when Tesla reported a 13% drop in first-quarter deliveries. Its advance helped the consumer discretionary (.SPLRCD) , opens new tab index, which rose 2%, the best performing of the 11 S&P sectors. Tesla fell during Trump's speech after the bell. Among other Magnificent Seven names, Amazon.com (AMZN.O) , opens new tab closed 2% higher after it was reported the company was bidding for short video platform TikTok. On the data front, U.S. private payrolls growth accelerated in March and new orders for U.S.-manufactured goods increased solidly in February, likely as businesses front-loaded orders ahead of tariffs. Focus will now switch to the crucial monthly non-farm payrolls data as well as Federal Reserve Chair Jerome Powell's speech on Friday for insights into the health of the U.S. economy and trajectory of interest rates. Traders have been betting on three rate cuts from the Fed this year but the prospect of tariff-induced inflationary pressures has clouded the outlook. Among the newest public companies, CoreWeave (CRWV.O) , opens new tab continued its recovery from a rocky first two trading days, with the artificial intelligence startup building on the previous session's gains with a 16.7% advance. However, conservative news provider Newsmax (NMAX.N) , opens new tab, which had posted triple-digit percentage gains on its first two days, retreated significantly, slumping 77.5% on the day. Volume on U.S. exchanges was 15.94 billion shares, compared with the 15.86 billion average for the full session over the last 20 trading days. https://www.reuters.com/markets/us/futures-dip-run-up-trump-tariffs-2025-04-02/
2025-04-02 19:51
April 2 (Reuters) - Shares of Truth Media & Technology Group, the parent company of President Donald Trump's Truth Social platform, plunged more than 6.5% on Wednesday after the company filed papers that would allow the president's trust to sell a large number of shares. Trump Media, which operates the Truth Social platform and is primarily owned by Trump, filed to re-register shares that would allow Trump's trust to potentially sell $2.3 billion worth of the company's stock. Sign up here. Existing shareholders in the company -- which include U.S. Attorney General Pam Bondi and Trump Media & Technology Group Chairman Devin Nunes -- are also looking to sell a total of 134 million shares, according to the filing. The company said its filing with the U.S. Securities and Exchange Commission was routine and there was no open window for any of its affiliates to sell shares. The filing comes after conservative news outlet Newsmax (NMAX.N) , opens new tab debuted on the New York Stock Exchange on Monday. Its stock - popular with retail investors - soared 180% in the previous session. Trump Media has been a popular stock on retail trading forums and has often seen wild bouts of volatility such as around the U.S. election in November last year. Trump had said in September he would not sell his shares in the company, triggering a 30% surge in the stock on the day. https://www.reuters.com/business/media-telecom/truth-media-files-allow-trumps-trust-sell-stock-axios-reports-2025-04-02/
2025-04-02 16:41
Canadian dollar dips 0.1% against the greenback Trades in a range of 1.4290 to 1.4334 Price of oil increases 0.5% Bond yields rise across the curve TORONTO, April 2 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Wednesday as investors globally awaited the announcement of sweeping new U.S. tariffs that could escalate a trade war. The loonie was trading 0.1% lower at 1.4315 per U.S. dollar, or 69.86 U.S. cents, after moving in a range of 1.4290 to 1.4334. Sign up here. U.S. President Donald Trump has kept investors guessing on the details of the tariff plans, which were still being formulated ahead of a White House Rose Garden announcement ceremony scheduled for 4 p.m. ET (2000 GMT). A separate 25% global tariff on U.S. auto imports is due to take effect on April 3. Canada sends about 75% of its exports to the United States, including autos and oil, and is expected to impose countermeasures. "The foreign exchange market reaction could prove complex and counter-intuitive," Karl Schamotta, chief market strategist at Corpay, said in a note. "Although it might seem obvious that the euro, Canadian dollar, and Mexican peso could rally in response to a more conciliatory tone from the president, it's almost impossible to know how much is already priced in." The Bank of Canada has said it needs to ensure higher prices from tariffs do not spread. Investors see a 56% chance the central bank will pause its interest rate cutting campaign at a policy decision on April 16. The U.S. dollar (.DXY) , opens new tab fell against a basket of major currencies, while oil was trading 0.5% higher at $71.58 a barrel as investors shrugged off mostly bearish U.S. government data on inventory. Canadian bond yields moved higher across the curve, tracking moves in U.S. Treasuries. The 10-year yield was up 2.5 basis points at 2.955%, after earlier hitting its lowest level since March 5 at 2.880%. https://www.reuters.com/markets/currencies/canadian-dollar-edges-lower-ahead-us-tariff-announcement-2025-04-02/
2025-04-02 13:15
SAO PAULO, April 2 (Reuters) - Brazil's industrial production unexpectedly fell in February from the previous month, official data showed on Wednesday, marking the fifth consecutive month without a positive reading as policymakers watch for signs of economic slowdown. Industrial output in Latin America's largest economy slipped 0.1% in February from January, government statistics agency IBGE said, while economists polled by Reuters expected 0.4% growth. Sign up here. Brazil's industry has been grappling with high interest rates as the country's central bank drives an aggressive monetary tightening cycle in an effort to cool the economy and bring inflation back to its target. The sector has lost steam in recent months despite an overall strong 2024, with IBGE noting in a report on Wednesday that it has declined 1.3% over the last five months, erasing the 1.0% growth it had recorded in August and September. IBGE attributed the negative results to lower confidence levels among families and the business community, high borrowing costs, elevated inflation, and the depreciation of Brazil's real currency in late 2024, which pressured production costs. Output decreased in two of the four main categories surveyed by the statistics agency, with production of durable goods posing the main drag with a drop of 3.2% on a sequential basis. Industrial production in February grew 1.5% from a year earlier, but economists in the Reuters poll expected a 2.1% increase. "Overall, the data reinforces the scenario of accommodating domestic demand, especially household consumption, with high interest rates and high inflation likely weighing on consumption decisions," said Flavio Serrano, chief economist at Banco BMG. "Looking ahead, we expect the cooling process to continue and intensify in the second half of the year." Brazil's central bank last month raised interest rates by 100 basis points for the third consecutive time to 14.25%, sticking to previous guidance, and penciled in a smaller hike in May. https://www.reuters.com/world/americas/brazils-industrial-output-unexpectedly-falls-february-2025-04-02/
