2025-03-07 19:33
CHICAGO, March 7 (Reuters) - Canada has blocked imports from the biggest U.S. pork processing plant, a facility run by Smithfield Foods (SFD.O) , opens new tab in Tar Heel, North Carolina, the company said on Friday. The suspension comes as Washington and Ottawa have sparred in a heated dispute over trade tariffs. It is the latest blow for America's farm sector, which has been roiled by concerns that U.S. tariffs will spark retaliation from top importers that reduces demand for American agricultural products. The U.S. Department of Agriculture said the suspension was in line with standard protocols and unrelated to recent trade activity. The agency and Smithfield, the largest U.S. pork processor, did not specify what triggered Canada's action. "Under Canada's policy, three noncompliance issues within six months trigger a temporary suspension," USDA said. Blocking shipments from the plant limits a market for U.S. pork products. USDA is working with Smithfield to address the issues and develop a corrective action plan that will be communicated to Canadian authorities, according to an agency statement. "Once reviewed and accepted, Canada may consider reinstating the plant's export eligibility," USDA said. Canada halted imports from the facility on Thursday, according to a USDA website. "The issue pertains to a limited number of certain offal shipments," Smithfield spokesman Jim Monroe said. Smithfield shares were nearly flat on Friday. U.S. President Donald Trumpexempted goods from Canada and Mexicoon Thursday under a North American trade pact for a month from the 25% tariffs he imposed earlier this week. Canada was the fifth-largest export market for U.S. pork last year, according to U.S. government data. Though shipments slipped, they were valued at about $850 million. U.S. pork has a significant presence in the Canadian retail and foodservice sectors, said Joe Schuele, spokesman for the U.S. Meat Export Federation, an industry group. Smithfield, whose brands include Eckrich and Nathan's Famous, returned to a U.S. exchange in January after more than a decade, in a spinoff by Hong Kong-based WH Group (0288.HK) , opens new tab. Sign up here. https://www.reuters.com/markets/commodities/canada-suspends-imports-biggest-us-pork-processing-plant-2025-03-07/
2025-03-07 19:31
White House asks Treasury to explore options to swiftly ease energy sanctions US to only ease sanctions if Russia, Ukraine reach peace deal Trump threatens more sanctions if Russia fails to make peace deal fast Request comes as Trump prepares for talks with Putin to end Ukraine war March 7 (Reuters) - The U.S. government is studying ways it could ease sanctions on Russia's energy sector as part of a broad plan to enable Washington to deliver swift relief if Moscow agrees to end the Ukraine war, according to two sources familiar with the matter. Reuters had reported earlier in the week that the United States was drawing up plans to potentially lift Russian sanctions on select entities and individuals, but it was not clear at the time whether the initiative would include Russia’s enormous oil and gas industry. Russia is among the world's largest oil and gas producers, and the U.S. has sought to starve Russia of the cash it needs for the war effort by targeting the industry with sanctions, and by leading a multilateral effort to cap the price of Russian oil exports to $60 a barrel. The White House has asked the Treasury Department to explore options for easing energy sanctions ahead of expected talks between President Donald Trump and Russian President Vladimir Putin to end the Ukraine war, the two sources said, speaking on condition of anonymity. That work would allow Washington to roll back the sanctions quickly in the event of a peace deal, according to the sources, who made clear the effort should not be read as an indication that the U.S. would lift the sanctions without Russian concessions. Trump says he plans to meet with Putin in Saudi Arabia in coming weeks to negotiate a deal to end the three-year-old Ukraine war, and analysts say relaxing the sanctions represents a likely centerpiece of any agreement. Trump on Friday also raised the prospect of imposing more large-scale U.S. sanctions on Russia and called on both countries to get on with negotiating a peace deal. Trump's threat came after Russian forces hit Ukrainian energy and gas infrastructure overnight. The Russian attack was the first since the U.S. paused aid and intelligence sharing with Ukraine. The White House National Security Council and Treasury did not respond to requests for comment. The energy sanctions inquiry is part of a broader review of U.S. actions against Russia that includes potentially lifting sanctions on select entities and individuals, including some Russian oligarchs. Since Russia’s annexation of Crimea in 2014, the United States has imposed a series of sanctions packages, including travel bans, asset freezes, as well as measures aimed at hitting the energy, finance and defense sectors. The Trump administration wants the ability to move swiftly to lift sanctions and avoid delays due to lack of preparations, the sources said, adding that it wanted to avoid previous turmoil when other sanctions were lifted. Delays in lifting U.S. sanctions on Russian aluminum producer Rusal in 2019, for example, created disruptions for firms in the transport, construction and packaging industries, and contributed to a 30% spike in aluminum prices. The Treasury is also looking at what Russia's full return would do to global oil prices and how it could shift trading patterns that have seen European markets shift away from Russian supplies and toward those of the United States. China and India have continued to buy Russian oil but payment problems and ship insurance gaps have complicated deliveries. Sign up here. https://www.reuters.com/world/us/us-mulls-how-ease-russia-energy-sanctions-quickly-if-war-ends-sources-say-2025-03-07/
2025-03-07 19:05
March 7 (Reuters) - Federal Reserve Governor Adriana Kugler said Friday it still remains challenging getting a handle on the impact of the Trump tariff regime, in a climate where these sorts of policies could lead to higher inflation pressures. “There is still, I would say, considerable uncertainty” amid the tariff push and “uncertainty can actually really slow down some of the economic activity” that otherwise would have happened, Kugler said in comments before a gathering held by the Banco de Portugal. She also said the tariffs pursued by the Trump Administration can drive up inflation and later depress growth. Sign up here. https://www.reuters.com/markets/us/feds-kugler-warns-uncertainty-tariff-risks-economy-2025-03-07/
2025-03-07 17:54
March 7 (Reuters) - Morgan Stanley lowered its 2025 economic growth forecast for the United States on Friday, citing greater impact from tariffs and a still-tight labor market resulting in higher inflation. "Earlier and broader tariffs should translate into softer growth this year, whereas we previously assumed it would weigh on growth mainly in 2026," said Morgan Stanley economists led by Michael T Gapen. The Wall Street brokerage lowered its Q4/Q4 2025 growth forecast to 1.5% from 1.9% earlier. It also lowered its 2026 growth forecast to 1.2% from 1.3%. President Trump's tariff policy is expected to drive up inflation and will increase pressure on the U.S. central bank as it looks to control persistent inflationary pressures, the note said. Morgan Stanley retained its forecast of a single 25-basis-point interest rate cut by the U.S. Federal Reserve this year in June. "We think markets will ultimately get these cuts, but much later than they expect," Gapen said referring to current market predictions of nearly three rate cuts this year. Meanwhile, Goldman Sachs also downgraded its 2025 Q4/Q4 GDP growth forecast to 1.7%, from 2.2% previously, and raised its 12-month recession probability to 20% from 15%. Sign up here. https://www.reuters.com/markets/us/morgan-stanley-cuts-us-growth-forecast-2025-tariff-concerns-2025-03-07/
2025-03-07 17:52
US, Germany, Finland dismantle Garantex infrastructure, charge administrators Garantex processed $96 billion in transactions since 2019, DOJ says TRM Labs cautions that sanctioned exchanges may evade restrictions by creating new entities WASHINGTON, March 7 (Reuters) - The United States, Germany and Finland have taken down the online infrastructure used by the Russian cryptocurrency exchange Garantex, the U.S. Justice Department said on Friday, adding that two administrators of the exchange were also charged. The two administrators, Aleksej Besciokov and Aleksandr Mira Serda, are both charged with money laundering conspiracy. Besciokov, a Russian resident and Lithuanian national, faces additional charges of violating sanctions and operating an unlicensed money transmitting business, the department said. The exchange has processed at least $96 billion in cryptocurrency transactions since April 2019, the department said. "The U.S. Secret Service has seized website domains associated with the administration and operation of Russian cryptocurrency exchange, Garantex as part of an ongoing investigation," Nate Herring, lead public affairs specialist at the U.S. Secret Service, said in an emailed statement on Friday, providing no additional comment. Garantex was sanctioned by the U.S. in April 2022. The exchange on Thursday said the stablecoin Tether had blocked digital wallets on its platform, forcing it to suspend operations days after coming under EU sanctions. The cryptocurrency industry elite are set to meet with U.S. President Donald Trump at the White House on Friday to discuss how the U.S. government will enact Trump's vision of making the country the "crypto capital of the world." Trump signed an executive order on Thursday to establish a strategic bitcoin reserve, White House crypto czar David Sacks said. The reserve will be capitalized with bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings, Sacks said. Also on Friday, Trump said he was "strongly considering" imposing sweeping sanctions, including ones on banking, and tariffs on Russia until a ceasefire and peace agreement is reached with Ukraine. Trump's threat comes days after Reuters reported that the White House was drawing up a plan to potentially give Russia sanctions relief as part of the administration's push to end the war and improve diplomatic and economic relations with Moscow. Trump has paused military aid and intelligence sharing to Ukraine to pressure Kyiv to accept a ceasefire deal after an explosive Oval Office meeting with Ukrainian President Volodymyr Zelenskiy a week ago. Trump has faced criticism for doubling down on Ukraine, including his comment last month that Kyiv, not Russia, was responsible for starting the war. Russia's embassy in Washington did not immediately respond to requests for comment. Blockchain research company TRM Labs said in a blog post that the takedown of Garantex "marks a major milestone in the fight against illicit finance" but cautioned that sanctioned exchanges often attempt to evade restrictions by creating new entities. Sign up here. https://www.reuters.com/world/europe/russian-garantex-cryptocurrency-exchange-targeted-international-operation-us-2025-03-07/
2025-03-07 17:33
LONDON, March 7 (Reuters) - Hedge fund Rokos Capital Management's return on investment was down 0.29% during February to the 21st but was up 0.57% for 2025 so far, said a source with knowledge of the matter on Friday. Volatility in financial markets helped the performance of global hedge funds in 2024, lifting returns to an average of roughly 11% for the year, according to hedge fund research firm PivotalPath. So far in 2025, hedge funds have returned 1.3% in the year-to-date as of end-February, said PivotalPath. Funds like the London headquartered Rokos Capital Management which trade on macro economic factors returned on average 1.6% this year so far as of February end, said PivotalPath. A representative for Rokos Capital Management declined to comment. (This story has been refiled to clarify that the firm is headquartered in London, in paragraph 3) Sign up here. https://www.reuters.com/markets/wealth/hedge-fund-rokos-capital-management-returns-057-year-so-far-says-source-2025-03-07/
