2025-11-18 10:02
Move aims to close regulatory loophole, could boost public revenue Central bank rules classify stablecoins as forex operations starting February BRASILIA, Nov 18 (Reuters) - Brazil is looking at taxing the use of cryptocurrencies for international payments, two officials with direct knowledge of the discussions told Reuters, closing a loophole in the country's usual levy on foreign-exchange transactions. One of the sources, who spoke on condition of anonymity about the confidential talks, said the Finance Ministry is looking at expanding its financial transaction tax (IOF) to some cross-border transfers using virtual assets and stablecoins that the central bank classified this month as forex operations. Sign up here. Crypto transactions are not currently subject to the IOF tax. Investors must pay income tax on capital gains from crypto assets in excess of a monthly exemption. The Finance Ministry declined to comment on the matter. MOVE COULD BOOST REVENUE Although both sources stressed the move was designed to close a regulatory loophole, the effect could be a boost in public revenue, which is under scrutiny as Brazil struggles to hit its fiscal targets. Brazil's crypto market has surged in recent years, driven largely by the use of stablecoins, which are backed by assets such as the U.S. dollar and are less volatile than other cryptocurrencies. Federal tax authority data show crypto transactions in Latin America's largest economy hit 227 billion reais ($42.8 billion) in the first half of 2025, up 20% from a year earlier. Two-thirds of that volume was trading of USDT, the dollar-backed stablecoin issued by Tether. By contrast, bitcoin - a decentralized digital asset with freely fluctuating prices - accounted for just 11% of transactions. The central bank has paved the way for a tax change with its new regulatory framework, one source said, based on the assessment that stablecoins in Brazil are used largely as a cheap way to hold dollar balances. The source said the new rules should "ensure that the use of stablecoins does not create regulatory arbitrage vis-a-vis the traditional foreign-exchange market." Brazilian officials have long warned that stablecoins were being used mainly for payments rather than investment, creating a new channel for money laundering amid a regulatory vacuum. RULES TAKE EFFECT IN FEBRUARY Under the central bank rules taking effect in February, any purchase, sale or exchange of stablecoins will be treated as a foreign-exchange transaction. The classification also covers international payments or transfers using virtual assets, settling obligations from card transactions or other electronic methods, and moving assets to or from self-custody wallets. The first source said the government is reviewing the issue "carefully," noting that the new central bank definitions do not automatically trigger tax obligations, which depend on separate guidance from Brazil's federal tax authority. On Monday, the tax service expanded reporting requirements for crypto transactions to include foreign service providers operating in Brazil. A Federal Police official said greater visibility of crypto transactions subject to IOF taxation will make it easier to levy other import taxes as well. "If you import machinery or inputs, declare 20% officially, and send the other 80% via USDT without paying customs duties, IOF is the least of your problems," that source said, estimating the government was missing out on more than $30 billion in annual revenue from imports paid for with crypto transfers to avoid taxation. ($1 = 5.3128 reais) https://www.reuters.com/world/americas/brazil-eyes-taxing-crypto-cross-border-payments-sources-say-2025-11-18/
2025-11-18 09:06
MILAN, Nov 18 (Reuters) - Global investors lifted equity and commodity allocations in November, but cash holdings fell to just 3.7%, triggering Bank of America's "sell signal" and raising concerns that bullish positioning could act as a headwind for risk assets, its monthly fund manager survey showed on Tuesday. The November survey warned that frothy markets may face further downside without a Federal Reserve rate cut in December, with emerging markets and banks seen as most exposed to a risk-off move in the final quarter of 2025. Sign up here. An AI bubble was the biggest tail risk for 45% of respondents, and a record share of investors said companies are "overinvesting", a sign spending by hyperscalers may need to slow down. Positioning remains crowded in technology, with 54% naming "long Magnificent 7" - the seven largest Wall Street stocks by market value - as the most crowded trade. The survey, titled “Cash poor, capex rich, rate-cut needy”, showed investors are net 34% overweight global stocks, the highest since February, and most overweight commodities since September 2022. Macro sentiment improved this month, with global growth expectations turning positive for the first time this year and 53% forecasting a soft landing. Still, a record 63% believe equity markets are currently overvalued. And, asked about the most likely source of a systemic credit event, 59% mentioned private equity/private credit, the highest conviction since 2022. The global survey of 172 fund managers overseeing $475 billion was conducted between November 7 and 13. https://www.reuters.com/business/investors-still-bullish-positioning-is-headwind-markets-bofa-survey-2025-11-18/
2025-11-18 08:06
KUWAIT, Nov 18 - Kuwait Petroleum Corporation said on Tuesday it had signed an agreement for a 1.5 billion dinar ($4.89 billion) syndicated loan led by the National Bank of Kuwait (NBKK.KW) , opens new tab and Kuwait Finance House (KFH.KW) , opens new tab. The deal marks the largest-ever syndicated loan denominated in Kuwaiti dinars, KPC said. Sign up here. The loan is split into two main tranches, a conventional portion of 825 million dinars and an Islamic tranche of 675 million dinars, KPC said in a statement. KPC is working on a strategy that aims to boost its oil output to 4 million barrels per day by 2035. Kuwait produced 2.55 million bpd in October, according to OPEC's November oil market report. The loan will help fund the strategy and is part of the company's efforts to diversify its funding sources, KPC CEO Sheikh Nawaf Saud Al-Sabah said in the statement. Under the agreement, NBK will initially provide 330 million dinars to KPC with an option for another 165 million dinars, under the conventional portion, which also includes funds from Al Ahli Bank of Kuwait (ABKK.KW) , opens new tab, Burgan Bank (BURG.KW) , opens new tab, Commercial Bank of Kuwait (CBKK.KW) , opens new tab and Gulf Bank (GBKK.KW) , opens new tab. KFH will provide an initial 270 million dinars with an option for an additional 135 million dinars under the Islamic tranche, which also includes Boubyan Bank (BOUK.KW) , opens new tab, Kuwait International Bank (KIBK.KW) , opens new tab and Warba Bank (WARB.KW) , opens new tab. KPC is also seeking to raise funds by leasing out and then leasing back its crude oil pipelines , opens new tab, which would mirror deals struck by several of its neighbours that raised billions of dollars. ($1 = 0.3068 Kuwaiti dinars) https://www.reuters.com/business/energy/kuwaits-state-oil-firm-kpc-signs-49-billion-loan-deal-with-local-banks-2025-11-18/
2025-11-18 07:49
PARIS, Nov 18 (Reuters) - German stock exchange operator Deutsche Boerse (DB1Gn.DE) , opens new tab plans to integrate stablecoins made by French bank Societe Generale (SOGN.PA) , opens new tab in its settlement business, the companies said on Tuesday, in an attempt to get the tokens more widely used. Societe Generale's crypto arm, SG-FORGE, has created a dollar-backed and euro-backed public stablecoin, but both have seen limited adoption. Sign up here. Deutsche Boerse plans to add the tokens to Clearstream, the companies said, by adding them to its custody services and possibly using them to settle trades and manage collateral in future. The partnership is the first time SG-FORGE's stablecoins will be integrated into a mainstream financial platform. Jean-Marc Stenger, CEO of SG-FORGE, said that using stablecoins is a quicker and cheaper way to move money. "What we want to achieve here is to bring to the traditional financial ecosystem the efficiency and speed we all see in the crypto ecosystem," he said. Banks and other financial institutions have for years been trying to find a role for blockchain-based assets, including stablecoins, in their businesses. There are $29.6 million worth of Societe Generale's dollar-backed token in circulation, and 65.2 million euros ($75.6 million) of the euro-backed equivalent, according to the company's website. The stablecoin market is dominated by El Salvador-based Tether, which says it has issued $184 billion worth of tokens. Crypto markets have surged following the election of U.S. President Donald Trump. ($1 = 0.8630 euros) https://www.reuters.com/business/finance/deutsche-boerse-add-socgens-stablecoins-its-settlement-business-2025-11-18/
2025-11-18 07:40
SINGAPORE, Nov 18 (Reuters) - India's Reliance (RELI.NS) , opens new tab has purchased 1 million barrels of heavy crude from Kuwait Petroleum Corp via a tender, four trade sources said. Last week, KPC issued a tender to sell crude oil that the Al-Zour refinery is unable to process because of unplanned maintenance after a fire. Sign up here. The cargoes - 500,000 barrels of Kuwait Heavy Crude for loading on December 6 to December 7 and the same volume of Eocene crude for loading on December 8 to December 9 - were awarded to Reliance, the people said. The prices for the purchase were not immediately clear. Reliance halted Russian oil purchases last month after Russian producers Rosneft and Lukoil were sanctioned by the United States. The Indian refiner has bought at least 12 million barrels of spot crude from the Middle East and the Americas, Reuters has reported. https://www.reuters.com/business/energy/reliance-buys-1-million-barrels-crude-kuwaits-kpc-trade-sources-say-2025-11-18/
2025-11-18 07:27
Trump says administration is interviewing for new Fed chair US Treasury says sanctions are squeezing Moscow's revenue Russian oil loadings at Novorossiysk resume after Ukraine attack Oil prices to fall next year, says Goldman Sachs HOUSTON, Nov 18 (Reuters) - Oil prices settled higher on Tuesday after a choppy session as traders weighed the impact of Western sanctions on Russian oil flows, as well as U.S. President Donald Trump saying his administration had started interviewing for the next Federal Reserve chair. Brent crude settled up 69 cents, or 1.07%, at $64.89 a barrel. U.S. West Texas Intermediate crude was up 83 cents, or 1.39%, to $60.74. Sign up here. U.S. crude futures briefly rose by more than $1 a barrel in afternoon trade to a session high of $60.92 after Trump announced the Federal Reserve chair interviews. Trump has been vocally critical of current Chair Jerome Powell for not cutting interest rates more quickly. “I think this news is supportive of the market because it is obvious what kind of person Trump will bring in for that job. This gave a risk-on type of nudge to the market," said John Kilduff, partner with Again Capital. Lower borrowing costs typically boost demand for oil and push prices higher. TREASURY SAYS SANCTIONS SQUEEZING RUSSIA The U.S. Treasury said sanctions imposed in October on Rosneft (ROSN.MM) , opens new tab and Lukoil (LKOH.MM) , opens new tab are already squeezing Russia's oil revenue and are expected to curb its export volumes over time. "Traders weighed the impact of a growing global surplus against U.S. sanctions that are disrupting Russian crude flows," said MUFG analyst Soojin Kim. A senior White House official said Trump was willing to sign Russian sanctions legislation as long as he retains final authority over its implementation. Trump said on Sunday that Republicans were drafting a bill to impose sanctions on any country doing business with Russia, adding that Iran could also be included. “This Russia sanctions legislation they are kicking around is exactly the type of secondary sanction that could make a real difference. The risk of losing Russian supplies is supportive and it has the attention of the market,” said Kilduff. Russia's Novorossiysk port resumed oil loadings on Sunday after a two-day suspension triggered by a Ukrainian missile and drone attack, according to two industry sources and data compiled by LSEG. Exports from Novorossiysk and a nearby Caspian Pipeline Consortium terminal, together representing about 2.2 million barrels per day, or roughly 2% of global supply, were halted on Friday, pushing crude prices up more than 2% that day. Oil prices are expected to decline through 2026, Goldman Sachs said on Monday, citing a supply wave that keeps the market in surplus. However, it noted that Brent could rise above $70 a barrel in 2026/2027 if Russian output falls more sharply. Meanwhile, U.S. crude and fuel stocks rose last week, market sources said, citing American Petroleum Institute figures on Tuesday. Crude stocks rose by 4.45 million barrels in the week ended November 14, the sources said on condition of anonymity. Gasoline inventories rose by 1.55 million barrels, while distillate inventories rose by 577,000 barrels from a week earlier, the sources said. https://www.reuters.com/business/energy/oil-slips-loadings-resume-russian-hub-markets-weigh-sanctions-impact-2025-11-18/
