2025-03-17 00:14

LONDON, March 17 (Reuters) - British finance minister Rachel Reeves' headroom for meeting her budget rules has probably turned into a 4.4 billion-pound ($5.7 billion) deficit, requiring tough measures next week to get her back on track, a think tank said on Monday. The Resolution Foundation called on Reeves to tread carefully with any reductions to welfare spending - which are expected to feature in her budget update speech on March 26 - and to consider tax increases instead. Sign up here. "The UK's economic outlook has declined markedly since the budget last autumn," James Smith, research director at the Resolution Foundation, said. "Weaker growth and higher interest rate expectations look set to turn the UK's projected current surplus of 10 billion pounds into a deficit of around 5 billion pounds." Britain's budget watchdog, the Office for Budget Responsibility, is expected to cut its 2.0% economic growth forecast for 2025 sharply. The Bank of England last month slashed its projection to 0.75% and the Resolution Foundation predicted a similar figure. The public finances have also been strained by higher-than-expected borrowing costs in global financial markets driven largely by the economic policies of U.S. President Donald Trump. Reeves should act decisively to meet her fiscal rules - which include a target of balancing day-to-day public spending with tax revenues by 2030 - but poorer households should not bear the brunt, Smith said. "With Britain's fiscal pressures more likely to intensify rather than fade away, continuing to rule out tax rises is going to make future budgets even more challenging to deliver," he said. Reeves and Prime Minister Keir Starmer promised voters in last year's election they would not raise the rates of income tax, value added tax or a tax on corporate profits. One option they could take is to extend by two years until 2030 a freeze on the thresholds at which people start paying different levels of income tax, raising billions of pounds. ($1 = 0.7735 pounds) https://www.reuters.com/world/uk/uk-think-tank-says-reeves-44-bln-pounds-red-fiscal-rules-2025-03-17/

2025-03-17 00:04

Deal to create A$4.2 billion gold producer Ramelius shares fall at open Spartan stock gains over 9% March 17 (Reuters) - Australia's Ramelius Resources (RMS.AX) , opens new tab will take over smaller peer Spartan Resources (SPR.AX) , opens new tab, valuing the miner at A$2.4 billion ($1.5 billion) on a debt-free basis, as rising bullion prices drive a wave of consolidation in the sector. Under the terms of the agreement, Ramelius, which already owns a 19.9% stake in Spartan, will acquire the remaining shares which would result in a A$4.2 billion gold-producing entity, the companies said on Monday. Sign up here. Ramelius is offering A$0.25 in cash and 0.6957 of its own shares for each Spartan share it does not already hold. Shares in Ramelius dropped 3.4% after open while those in Spartan rose over 9%. The deal follows a sharp rise in gold prices, with Australian-dollar gold hitting a record high above A$4,240 per troy ounce in late October. Prices have rallied by around a third over the past year, supporting increased merger and acquisition activity across the industry. Ramelius announced a trading update last week, where the miner flagged lower-than-expected production, higher costs and capital expenditure at its Mount Magnet gold mine. Ramelius Managing Director Mark Zeptner said the merger would "supercharge" production at the company’s Mount Magnet operations by incorporating Spartan’s Dalgaranga mineral resource. "The combination will see Mount Magnet deliver higher ounces, at higher grade, with higher margins," Zeptner said. He added that Ramelius has a vision for the combined group to produce over 500,000 ounces of gold annually by fiscal 2030. Analyst Arun George of Smartkarma noted the merger is expected to generate synergies through greater production scale and reduced costs. "By adding ore to Mount Magnet, Spartan could fix Ramelius’ near-term production gap," he said. Shareholders of Spartan will own 39.5% of the newly merged company while Ramelius will have the rest of the stake. Spartan's executive chair, Simon Lawson, will join the combined firm's board as a non-executive deputy chair. Spartan's board has already backed the merger deal, asking investors to vote in its favour. Ramelius has been actively pursuing acquisitions to bolster its portfolio, following challenges at its ageing Edna May mine. Previous takeover attempts included a failed bid for Karora Resources, which was ultimately acquired by Westgold Resources (WGX.AX) , opens new tab, and a separate unsuccessful A$3 billion approach to merge with Westgold. ($1 = 1.5805 Australian dollars) https://www.reuters.com/markets/deals/aussie-gold-miner-ramelius-take-over-spartan-15-bln-deal-2025-03-17/

2025-03-16 23:53

SYDNEY, March 17 (Reuters) - The Australian government has estimated costs from Tropical Cyclone Alfred to be about A$1.2 billion ($759 million), shaving off a quarter of a percentage point from its gross domestic product in the March quarter, Australian media reported. Alfred hit land north of Brisbane, Australia's third-most populous city, this month after being downgraded to a tropical low, triggering flash flooding and power outages in the states of Queensland and New South Wales. Sign up here. Treasurer Jim Chalmers will say on Tuesday that though it is still too early to quantify the cyclone's full impacts on the economy, the event would dent the country's quarterly growth, according to excerpts of his speech distributed to Australian media. The treasurer's office did not immediately respond to a request for comment. "We don't yet know the precise cost to our budget, but again it will be significant," Chalmers will say in the speech to the Queensland Media Club, reports said, a week away from presenting his final budget before the national election due by mid-May. "I expect that these costs and these new provisions will be in the order of at least A$1.2 billion, a substantial amount of money and that means a big new pressure on the budget." The storm could have spurred inflation due to the damage to fruit and vegetable farms, Chalmers will say, as his centre-left government fights to retain power. Recent polls showed the opposition Liberal-National coalition was slightly ahead of the Labor government. More than 53,000 claims have been submitted for damages related to the storm as of Friday, the Insurance Council of Australia said. Chalmers is also expected to detail the likely economic impact from U.S. President Donald Trump's decision to impose tariffs on steel and aluminium, reports said. ($1 = 1.5808 Australian dollars) https://www.reuters.com/world/asia-pacific/cyclone-alfred-dent-australias-march-quarter-gdp-treasurer-will-say-2025-03-16/

2025-03-16 23:10

German court could set precedent for climate change litigation Case seeks to hold energy utility accountable for emissions Court examines glacier melt's impact on flood risk in Peruvian Andes RWE, phasing out coal, says single emitter cannot be held responsible HAMM, Germany, March 17 (Reuters) - A Peruvian farmer who says German energy giant RWE's emissions have contributed to the melting of Andean glaciers, increasing the flood risk to his home, took his case to court on Monday in a hearing that could set a precedent for climate litigation. The case, which began a decade ago and is now being heard in Hamm in Germany, could deliver a landmark ruling if the court holds the company accountable for past emissions and requires it to help fund climate adaptation for affected communities. Sign up here. Saul Luciano Lliuya, supported by the activist group Germanwatch, wants RWE to pay around 17,000 euros ($18,520) toward a $3.5 million flood defence project. "Because of the climate crisis in Huaraz, the mountains, the glaciers are melting ... I am here to ask for climate justice," Lliuya said ahead of the hearing as activists cheered in the background. In the mountains above Huaraz, glacier meltwater running into Lake Palcacocha creates a threat for the town, which has a population of over 65,000 people, he says. Lliuya, 44, whose family grows corn, wheat, barley and potatoes in a hilly region outside Huaraz, says he has chosen to sue RWE because it is one of the biggest polluters in Europe -- rather than any particular company projects near his home. Using data from the Carbon Majors database of historic production from major fossil fuel and cement producers, Lliuya says RWE has caused nearly 0.5% of global manmade emissions since the industrial revolution, and should cover a proportional share of the costs of the global warming they have caused. RWE, which is phasing out its coal-fired power plants, says a single emitter of carbon dioxide cannot be held responsible for global warming. "If such a claim were to exist under German law, it would also be possible to hold every motorist liable," it said in a statement. Sebastien Duyck, senior attorney with the Center for International Environmental Law, said: "Legal experts are watching closely to understand the extent to which this is going ... to set a strong precedent." FLOOD RISK? The case started in 2015 in the German city of Essen, RWE's home. It was initially dismissed, but the Higher Regional Court of Hamm let it go forward in 2017. The court must first determine whether melting glaciers are raising the water levels in Lake Palcacocha, over 4,500 metres (15,000 feet) above sea level, and pose a direct risk to Lliuya's home in Huaraz over the next 30 years. A packed courtroom listened as the hearing unfolded on Monday - outlining the case, presenting experts' findings, and examining the scientific geotechnical details of the report which found a 3% flood risk to his home over the next 30 years. Speaking to journalists after the first day of hearing, Lliuya's lawyer, Roda Verheyen, raised concerns about the assessment of risks by the court-appointed expert and said she was ready to challenge the report's findings. "What I heard today has reinforced my impression that this expert is not truly an expert—at least not in high-altitude mountain regions—and that deeply concerns me," she said. If the court finds there is a specific flooding risk to Lliuya's home, it will then examine the impact of climate change and greenhouse gas emissions on Andean glaciers melting and increasing the risk. A second day of hearings is due on Wednesday and a ruling on the first question could come then, but is more likely to be delivered some time later. The case has inched along as a visit by court-appointed experts to study flood risks around the glacier was delayed until 2022 due to the COVID pandemic and coordination with the authorities. Such was the difficulty of the terrain, donkeys were needed to help reach the site, the court heard. A 200-page expert opinion produced in 2023 has since been examined by the two parties before coming to court. Harjeet Singh, founding director of the Satat Sampada Climate Foundation, dedicated to global climate justice, said cases such as Lliuya's could one day generate alternative funding for the impact of climate change. "We can double down on those companies who are responsible for the crisis and how we can raise the proceeds to help people recover from current impacts," Singh said. The sum that industrialised countries should also contribute to mitigating the effects of global warming - such as rising sea levels or extreme storms and heatwaves - has been argued over at successive U.N. climate summits up to last year's COP29 in Baku. Since then, President Donald Trump has announced the U.S.'s withdrawal from the U.N. process, while other developed countries are diverting aid budgets to domestic challenges or defence spending. ($1 = 0.9192 euros) https://www.reuters.com/sustainability/peruvian-farmer-takes-german-energy-giant-rwe-court-landmark-climate-case-2025-03-16/

2025-03-16 22:26

US vows to hit Houthis until shipping attacks stop China retail sales pick up China's crude oil throughput rose 2.1% in January, February Trump to speak to Putin on Tuesday about Ukraine war HOUSTON, March 17 (Reuters) - Oil prices rose slightly on Monday after the United States vowed to keep attacking Yemen's Houthis until the Iran-aligned group ends its assaults on shipping, while Chinese economic data buoyed hopes for higher demand. U.S. President Donald Trump said on Monday he would hold Iran responsible for any attacks carried out by the Houthi group that it backs in Yemen, as his administration expanded the biggest U.S. military operation in the Middle East since Trump returned to the White House. Sign up here. Brent futures rose 49 cents, or 0.7%, to $71.07 a barrel, while U.S. West Texas Intermediate crude futures gained 40 cents, or 0.6%, to $67.58. The Red Sea port city of Hodeidah and the Al Jawf governorate north of the capital Sanaa were targeted on Monday, the Houthis' Al Masirah TV said. Chinese economic data also supported prices. Retail sales growth quickened over January-February in a welcome sign for policymakers seeking to boost domestic consumption, though unemployment rose and factory output eased. China's crude oil throughput in January and February rose 2.1% versus a year earlier, official data showed on Monday, supported by a new refinery and holiday travel, but weak refining margins persisted. "The combination of increased stimulus from China and the heightened attack by the Houthi rebels is providing a significant boost (to oil) this morning," said Phil Flynn, senior analyst with Price Futures Group. The U.S. dollar eased against a basket of currencies as investors worried about the economic fallout from Trump's protectionist trade policies. A weaker dollar makes oil less expensive for overseas buyers, boosting demand. Oil rose slightly last week, though Brent is still down almost 5% this year on concern over a global economic slowdown driven by escalating trade tensions between the U.S. and other nations. OPEC+ oil producers' plan to raise oil output from April has also pressured prices. However, the prospect of tighter U.S. sanctions against Iran more than offsets the gradual OPEC+ production increase, said Saxo Bank head of commodity strategy Ole Hansen. "China's plans to boost consumption and fresh Red Sea risks" are supporting the market on Monday, he added. Trump said he would speak to Russian President Vladimir Putin on Tuesday about ending the Ukraine war, with territorial concessions by Kyiv and control of the Zaporizhzhia nuclear power plant likely to feature prominently in the talks. "The negative to crude is focused on the tariffs and a Russia/Ukraine peace negotiation which would likely increase Russian crude to the world market," said Dennis Kissler, senior vice president of trading at BOK Financial. U.S. crude oil stockpiles are expected to have risen last week, while distillate and gasoline inventories likely fell, a preliminary Reuters poll showed on Monday. Industry data is expected on Tuesday, while official government data is expected on Wednesday. https://www.reuters.com/business/energy/brent-crude-opens-week-higher-us-vows-keep-attacking-houthis-2025-03-16/

2025-03-16 20:46

US strikes kill at least 53, says Houthi-run ministry Russia urges U.S. to cease strikes and engage in dialogue Iran warns of decisive response to any threats Houthis threaten to resume Red Sea attacks on Israeli shipping WASHINGTON/ADEN, Yemen, March 16 (Reuters) - The United States will keep attacking Yemen's Houthis until they end attacks on shipping, the U.S. defense secretary said on Sunday, as the Iran-aligned group signaled it could escalate in response to deadly U.S. strikes the day before. The airstrikes, which the Houthi-run health ministry said killed at least 53 people, are the biggest U.S. military operation in the Middle East since President Donald Trump took office in January. One U.S. official told Reuters the campaign might continue for weeks. Sign up here. Houthi leader Abdul Malik al-Houthi said on Sunday that his militants would target U.S. ships in the Red Sea as long as the U.S. continues its attacks on Yemen. "If they continue their aggression, we will continue the escalation," he said in a televised speech. The Houthi movement's political bureau described the attacks as a "war crime," while Moscow urged Washington to cease the strikes. The Houthis' military spokesperson on Sunday said, without offering evidence, that the group had targeted U.S. aircraft carrier USS Harry S. Truman and its warships in the Red Sea with ballistic missiles and drones in response to the U.S. attacks. U.S. warplanes shot down 11 Houthi drones on Sunday, none of which came close to the Truman, a U.S. official told Reuters. U.S. forces also tracked a missile that splashed down off the coast of Yemen and was not deemed a threat, the official said. U.S. Defense Secretary Pete Hegseth told Fox News' "Sunday Morning Futures": "The minute the Houthis say we'll stop shooting at your ships, we'll stop shooting at your drones. This campaign will end, but until then it will be unrelenting." "This is about stopping the shooting at assets ... in that critical waterway, to reopen freedom of navigation, which is a core national interest of the United States, and Iran has been enabling the Houthis for far too long," he said. "They better back off." The Houthis, who have taken control of most of Yemen over the past decade, said last week they would resume attacks on Israeli ships passing through the Red Sea if Israel did not lift a block on aid entering Gaza. They had launched scores of attacks on shipping after Israel's war with Hamas began in late 2023, saying they were acting in solidarity with Gaza's Palestinians. Trump also told Iran, the Houthis' main backer, to stop supporting the group immediately. He said if Iran threatened the United States, "America will hold you fully accountable and, we won't be nice about it!" IRAN WARNS US NOT TO ESCALATE In response, Hossein Salami, the top commander of Iran's Revolutionary Guards, said the Houthis made their own decisions. "We warn our enemies that Iran will respond decisively and destructively if they carry out their threats," he told state media. United Nations Secretary-General Antonio Guterres on Sunday called for "utmost restraint and a cessation of all military activities" in Yemen and warned new escalation could "fuel cycles of retaliation that may further destabilize Yemen and the region, and pose grave risks to the already dire humanitarian situation in the country," his spokesperson said in a statement. U.S. Secretary of State Marco Rubio told CBS News' "Face the Nation" program: "There's no way the ... Houthis would have the ability to do this kind of thing unless they had support from Iran. And so this was a message to Iran: don't keep supporting them, because then you will also be responsible for what they are doing in attacking Navy ships and attacking global shipping." Russian Foreign Minister Sergei Lavrov called Rubio to urge an "immediate cessation of the use of force and the importance for all sides to engage in political dialogue," Moscow said. Five children and two women were among the 53 people killed in the U.S. strikes, said Anees Alsbahi, spokesperson for the Houthi-run health ministry. Another 98 people were injured, the ministry said. The Pentagon did not immediately respond to a request for comment about the claims of civilian casualties. Reuters could not independently verify the claims. Residents in Sanaa said the strikes hit a neighborhood known to host several members of the Houthi leadership. "The explosions were violent and shook the neighborhood like an earthquake. They terrified our women and children," said one of the residents, who gave his name as Abdullah Yahia. In Sanaa, a crane and bulldozer were used to remove debris at one site and people used their bare hands to pick through the rubble. At a hospital, medics treated the injured, including children, and the bodies of several casualties were placed in a yard, wrapped in plastic sheets, Reuters footage showed. Strikes also targeted Houthi military sites in the city of Taiz, two witnesses said on Sunday. HOUTHIS' RED SEA ATTACKS DISRUPT GLOBAL TRADE ROUTE Another strike, on a power station in the town of Dahyan, led to a power cut, Al-Masirah TV reported early on Sunday. Dahyan is where Abdul Malik al-Houthi, the enigmatic leader of the Houthis, often meets visitors. The Houthi attacks on shipping have disrupted global commerce and set the U.S. military off on a costly campaign to intercept missiles and drones. The group suspended its campaign when Israel and Hamas agreed to a ceasefire in Gaza in January. But on March 12, the Houthis said their threat to attack Israeli ships would remain in effect until Israel reapproved the delivery of aid and food into Gaza. https://www.reuters.com/world/middle-east/houthis-say-they-are-ready-escalate-after-us-strikes-yemen-2025-03-16/