2025-03-05 22:58
SAN SALVADOR, March 5 (Reuters) - El Salvador announced on Wednesday the purchase of a bitcoin, which takes the total in the country's strategic reserve to above 6,102 coins, the National Bitcoin Office posted on social media. The bitcoin purchase announcement comes days after the International Monetary Fund board approved a 40-month program with El Salvador for $1.4 billion that implied a downgrade of the cryptocurrency's status in the Central American country. Bitcoin cannot be used to pay taxes and its acceptance by the public is voluntary, which is not what was expected when it was given a legal tender status back in 2021. Importantly, the government has committed to the IMF not to accumulate further bitcoins "at the level of the overall public sector" according to the IMF. "We consulted with the (Salvadoran) authorities, and they have assured us that the recent increase in Bitcoin holdings in the Strategic Bitcoin Reserve Fund is consistent with agreed program conditionality," a fund spokesperson said. The IMF did not respond to further questions on how purchases by the national office do not add to the government's exposure to the cryptocurrency. The Salvadoran Presidential House did not immediately respond to a request for comment. Salvadoran government dollar bonds were mostly down in price on Wednesday, with the 2050 and 2041 maturities down 0.75 cents on the dollar. El Salvador has bought 12 bitcoins since the IMF announced last week the board approval of the agreement reached in December. It currently holds near $550 million in bitcoin, according to the government. Sign up here. https://www.reuters.com/technology/el-salvador-announces-more-bitcoin-purchases-gives-imf-assurances-2025-03-05/
2025-03-05 21:49
OTTAWA, March 5 (Reuters) - Canada could potentially use oil and gas exports as a lever in negotiations if U.S. tariffs on Canadian imports escalate, Foreign Minister Melanie Joly told a Toronto business audience on Wednesday. Canada is vowing to impose tariffs on C$155 billion worth of U.S. imports but has so far not suggested it would either reduce exports of key commodities to the United States or impose tariffs on them. Canada exports about 4 million barrels per day of oil to the United States, approximately 90% of its total crude exports. "Of course, there's oil and gas. We haven't put that on the table yet, guys, we kept that in our game, in our cards, as cards that we could potentially play if this would escalate, and the U.S. knows that," Joly said. Joly also said U.S. farmers would have to pay C$1.7 billion more if Ottawa imposed export tariffs on potash but did not specifically mention this as a potential card in negotiations. Alberta, Canada's main energy-exporting province, says it would never accept the idea of reducing energy exports to the United States. Joly is a minister in the government of Prime Minister Justin Trudeau, who will step down after the ruling Liberal Party chooses a new leader on Sunday. The two main contenders both say Canada should take a tough line with U.S. President Donald Trump over his tariffs. Sign up here. https://www.reuters.com/business/energy/canada-could-use-oil-gas-exports-lever-if-tariffs-escalate-says-minister-2025-03-05/
2025-03-05 21:33
TSX ends up 1.2% at 24,870.82 Materials group adds 3.4% as copper jumps Magna International shares climb 6.9% Bombardier jumps nearly 10% March 5 (Reuters) - Canada's main stock index rebounded from a seven-week low on Wednesday, led by gains for metal mining and consumer discretionary shares, as copper prices jumped and Canada gained some relief from hefty U.S. tariffs. The S&P/TSX composite index (.GSPTSE) , opens new tab ended up 298.82 points, or 1.2%, at 24,870.82, after posting on Tuesday its lowest closing level since January 13. President Donald Trump will exempt automakers from his punishing 25% tariffs on Canada and Mexico for one month as long as they comply with the terms of an existing free trade agreement, the White House said. Trump is also open to hearing about other products that should be exempted from the tariffs, which took effect Tuesday, the White House said. "The prevailing sentiment appears to be that the U.S. will not significantly disrupt trade with Canada given our close economic connection," said Victor Kuntzevitsky, a portfolio manager at Stonehaven, Wellington-Altus Private Counsel. "Our view is that the trade dispute will get worse before it will get better." The downturn in Canada's services economy deepened in February as firms avoided committing to new business in anticipation of a trade war, S&P Global's Canada services PMI data showed. The materials group, which includes fertilizer companies and metal mining shares, climbed 3.4% as China's move to unlock more fiscal stimulus and a proposed 500 billion euro infrastructure fund in Germany contributed to higher copper prices. The consumer discretionary sector added 2%, helped by gains for auto parts companies. Magna International Inc (MG.TO) , opens new tab climbed 6.9% and Linamar Corp (LNR.TO) , opens new tab ended 4.1% higher. Technology rose 1.8% and industrials were up 1.2% higher. Shares of business aircraft manufacturer Bombardier Inc (BBDb.TO) , opens new tab jumped nearly 10%. Energy was the only major sector to lose ground, falling 0.8%, as the price of oil settled 2.9% lower at $66.31 a barrel. Sign up here. https://www.reuters.com/markets/tsx-futures-rise-trump-officials-consider-tariff-relief-2025-03-05/
2025-03-05 21:08
ORLANDO, Florida, March 4 (Reuters) - It has been an extraordinary 24 hours for government spending. Germany has given the green light for an unprecedented fiscal splurge worth 1 trillion euros that has been warmly welcomed by the market, at the same time investors are becoming increasingly anxious about the tightening purse strings on the other side of the Atlantic. This fiscal binge is coming not during an economic crisis like the pandemic recession in 2020, the Global Financial Crisis of 2008 or euro zone debt crisis in 2011-12. German growth may have ground to a halt, but there is no economic panic. The fiscal taps are being opened, in large part, because of a shifting geopolitical order, as President Donald Trump's ambivalence toward the continent has exposed Europe's security vulnerabilities. In response, Germany's likely incoming Chancellor Friedrich Merz has proposed the biggest spending spree since reunification in 1990. Defense and infrastructure outlays could amount to roughly 1 trillion euros, or 20% of GDP, and Berlin is also set to relax its 'debt brake' fiscal rule that has long hampered government expenditure. There are several layers of irony in the stunning proposals from Germany, which has long been synonymous with inflation-fearing fiscal conservatism at home and vehement opposition to perceived budgetary 'indiscipline' across the euro zone. But Berlin's shackles are off, and governments across Europe are likely to follow suit, increasing spending on defense and other sectors, giving the region an even greater fiscal boost. US ON OPPOSITE PATH The approach to public spending is quite different in Washington, where Trump has given Elon Musk carte blanche to take a chainsaw to the U.S. federal budget. Private sector good, public sector bad. Treasury Secretary Scott Bessent insists that the seemingly robust U.S. economy is "brittle" under the surface because GDP has been artificially enhanced by the previous administration's fiscal largesse. And on Sunday, Commerce Secretary Howard Lutnick said government spending has historically "messed" with GDP and should be stripped from GDP figures altogether. This would be a complete rejection of standard practice since the 1940s, but given some of the Trump administration's other radical proposals, it's certainly possible. While Lutnick's comments are probably ill-advised, Bessent may have a point. Total government spending in 2023 and 2024, including federal, state, and local government, rose 3.9% and 3.4%, respectively, meaning it did play a large role in helping the U.S. achieve real GDP growth of 2.9% and 2.8%, respectively, in the past two years. But even if this growth was supported by fiscal spending, it was still strong and has helped keep unemployment anchored near its lowest levels in over half a century. THUMBS UP How are markets reacting to the news from Berlin? They're loving it. Germany's Dax leaped 3.4% on Wednesday for its best day in nearly two and a half years, and the euro's rise brought its gains this week close to 4%. A host of global investment banks have raised their euro forecasts and upgraded their outlook for German and euro zone growth. True, with a budget deficit of under 3% of GDP and debt worth 63% of GDP, Germany has far more 'fiscal space' than the U.S., with its 6% deficit and 120% debt. The positive equity and currency market reaction to Berlin's moves makes sense, although soaring euro zone bond yields and negative swap spreads point to some investor caution around the spending splurge. But overall, markets are showing that government has an important part to play in making growth great again. (The opinions expressed here are those of the author, a columnist for Reuters.) Sign up here. https://www.reuters.com/markets/europe/maybe-government-spending-isnt-so-bad-after-all-mcgeever-2025-03-05/
2025-03-05 20:53
BAMAKO, March 5 (Reuters) - Mali is suspending the granting of new artisanal mining permits to foreigners, after a couple of accidents in recent weeks left dozens dead. The collapse on February 15 of an artisanal gold mine killed 43 people, mostly women, in the gold-rich Kayes region. On January 29, 13 artisanal miners, including women and three children, were killed in southwest Mali after a tunnel in which they were digging for gold flooded. In response to the deaths, Mali's Council of Ministers decided at its weekly meeting on Wednesday to suspend the granting of artisanal mining permits "to persons of foreign nationality", a statement said. It also approved the dismissal of administrative and security officials connected to the two recent accidents, the statement said. Mali is one of Africa's top gold producers and home to industrial mines operated by international companies including Barrick Gold (ABX.TO) , opens new tab, B2Gold Corp (BTO.TO) , opens new tab, Resolute Mining (RSG.AX) , opens new tab and Hummingbird Resources Plc . After seizing power in 2020 in a military coup, Mali's leaders pledged to scrutinise the country's mining sector so the state would benefit more from gold prices running at all-time highs. The result was a series of disputes with foreign firms including one with Barrick that remains unresolved. Mali's industrial gold production plunged 23% year-over-year in 2024. Sign up here. https://www.reuters.com/world/africa/mali-suspends-artisanal-mine-permits-foreigners-after-accidents-2025-03-05/
2025-03-05 20:53
SEC and CFTC to maintain core enforcement amid policy changes SEC shifts crypto enforcement, pausing active litigation Audience member chides panelists for 'business as usual' attitude MIAMI, March 5 (Reuters) - Top enforcement officials at the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission on Wednesday said the agencies will continue to police market misconduct, remarks that arrive as the Trump administration seeks to remake Washington and enforcement. Both market regulators have already undergone dramatic policy changes since Republicans took the helm at the agencies in late January, including a policy overhaul of cryptocurrency regulations at the SEC, while the CFTC has reorganized its enforcement division. "You can expect to see some changes based on priorities and the different policies we may pursue," Antonia Apps, acting deputy enforcement director at the SEC, said at an American Bar Association event in Miami. "But we are going to move forward with the core enforcement agenda we have always moved forward with." They spoke at a conference about government enforcement of white-collar crime at which officials from the Justice Department dropped out of speaking in the days leading up to the event amid changes across the government and upheaval at the DOJ specifically. The officials' measured tone also drew an impassioned response from one attendee, who said they were ignoring political influence over prosecutors and regulators under the Trump administration, drawing applause from the audience. Both Apps and CFTC enforcement director Brian Young voiced support for enforcement staff at the agencies. Staff at both agencies and across the federal government have been facing mass firings and other cuts as the Trump administration and special adviser Elon Musk seek to remake the federal workforce. In addition to doing great work, CFTC enforcement staff are "really good people," Young said. "I think the taxpayers should be indebted to what they do for us every day," he said. Young said the agency's new focus in enforcement translates to a focus on cases where there is a "good chance" of returning money to victims of fraud or manipulation schemes. On crypto, the SEC has overhauled its tack, dropping or pausing active litigation as well as investigations. When asked about the future of crypto enforcement at the agency, Apps said the regulator will continue to look at enforcement in crypto where it sees fraud and has jurisdiction. "We are not walking away," she said. 'BUSINESS AS USUAL' During the panel's question-and-answer session, Miami-based lawyer Edward Shohat said the ABA should push back more strongly against what he termed political influence over prosecutorial and regulatory decisions. "I've seen in the last few weeks the destruction of the independence of the DOJ," Shohat said to applause from the audience. "Why are we acting as if business is as usual?" Aitan Goelman, an ABA official who was moderating the panel, said he would not ask the panelists to respond to Shohat's criticisms. He thanked Apps and Young for showing up, saying it took “courage." "I don't think anyone on this stage or any of the speakers at this conference believes what's going on now is normal or business as usual," Goelman said. Sign up here. https://www.reuters.com/world/us/top-cops-us-market-regulators-vow-core-enforcement-continue-2025-03-05/
