2025-02-26 16:59

Reeves confident US-UK trade and investment can grow under Trump UK public services must live with budgets set in October Trade not aid best approach for South Africa CAPE TOWN, Feb 26 (Reuters) - British finance minister Rachel Reeves said on Wednesday she was confident that U.S.-UK trade and investment would not be derailed as President Donald Trump threatens to retaliate against what he sees as barriers to U.S. exports. Prime Minister Keir Starmer is due to meet Trump in Washington on Thursday with the risk of trade tariffs one of the key issues on the table. "The last time President Trump was in the White House, trade and investment flows between our two countries increased, and I've got every confidence that that can happen again," Reeves told Reuters in an interview on the sidelines of a Group of 20 finance chiefs' meeting in South Africa. Trump has said value-added taxes levied by European countries represent an unfair barrier to U.S. exports. Asked if Britain was likely to change its tax regime, Reeves said: "Decisions on tax are for the UK government to make." Imports and exports of goods and services between Britain and the U.S. totalled $317 billion in 2023, the U.S. Bureau of Economic Analysis says, making Britain the fifth-biggest U.S. trade partner after Canada, Mexico, China and Germany. The United States is Britain's single biggest national trade partner, although the UK trades far more with the 27 members of the European Union as a bloc. Trump said earlier this month that he thought something could be "worked out" with Britain on the threat of tariffs while he sounded more committed to imposing tariffs on EU countries. A trade war with the United States could undermine the plans of Starmer and Reeves to speed up Britain's slow economy which barely grew in the second half of last year. Reeves is due to announce new economic and fiscal forecasts from Britain's independent budget watchdog on March 26, a key date for investors as she may have to explain how she will meet her fiscal rules that appear to be in danger of being broken. Asked if she was worried about an adverse reaction in financial markets on March 26, Reeves said she would not give a running commentary on preparations. "We took the action that was necessary in October to secure our public finances," she said. "Public services now need to live within the means that we've set." U.S. Treasury Secretary Scott Bessent and finance ministers from China, India, Brazil and Japan all decided to skip this G20 meeting in Cape Town. But Reeves said Britain wanted to play a full part in international forums. Asked how host South Africa was likely to take Starmer's announcement on Tuesday of a 40% cut to Britain's aid budget to fund more defence spending, Reeves said Britain was focused on boosting economic ties between the two countries. "The most important way to improve living standards in the UK and in South Africa is to improve trade between our countries," she said. Sign up here. https://www.reuters.com/markets/uks-reeves-says-trade-with-us-can-flow-amid-trump-trade-threats-2025-02-26/

2025-02-26 14:31

MOSCOW, Feb 26 (Reuters) - The Russian central bank said on Wednesday that the rouble's rally since the start of the year was linked in part to geopolitical factors, but it was too early to evaluate the impact on the economy. The Russian currency has gained about 24% against the dollar and 15% against China's yuan this year, mostly on expectations of better relations with the United States. "The strengthening of the rouble was linked both to the markets' reaction to geopolitical events and to the seasonal decrease in demand for foreign currency from importers," the regulator said. "It is currently difficult to assess how sustainable the strengthening of the rouble observed in recent weeks will be and how it will affect prices," it said in the published minutes from its rate-setting meeting on February 14. A stronger rouble would help to bring down the rate of inflation, which has become the main headache for Russian authorities. The central bank kept its key interest rate on hold at 21% at its last meeting, the highest level since the early 2000s, to fight inflation. The regulator said that the board had considered hiking the rate further to 22%, given continued inflationary pressures and the overheating of the economy. It expects the annual inflation rate to climb to 10.6% in the first quarter of 2025, according to the baseline scenario. Russia's economic growth rate could fall to 2.9% in the first quarter of 2025 compared with 3.3% in the fourth quarter of 2024, it said. Sign up here. https://www.reuters.com/markets/currencies/russias-central-bank-links-rouble-rally-geopolitics-2025-02-26/

2025-02-26 13:37

SAO PAULO, Feb 26 (Reuters) - Brazilian brewer Ambev (ABEV3.SA) , opens new tab on Wednesday reported a 7.5% increase in its fourth-quarter adjusted net profit despite a decline in total volumes, driving its shares higher even as it flagged that volatility will "remain a reality" in 2025. WHY IT'S IMPORTANT Ambev is one of Brazil's biggest firms and has large operations in the Americas. It is a subsidiary of Anheuser-Busch InBev (ABI.BR) , opens new tab, the world's largest brewer by volume, which reported group results earlier in the day. BY THE NUMBERS Ambev posted an adjusted net profit of 5.02 billion reais ($874.63 million) in the October-December period, it said in a securities filing, a 7.5% year-on-year rise driven by higher core earnings and better financial results. Total volumes, which declined 3.2% in the period, were affected by softer market conditions in Argentina and adverse weather in Brazil. Organic net revenue was still up 4.2% to 27.04 billion reais, with growth in most business units. 2025 OUTLOOK Assuming current foreign exchange levels and commodity prices, Ambev said it expects the cash cost of goods sold per hectoliter in its key Brazil Beer segment to grow between 5.5% and 8.5% this year. KEY QUOTES "In 2025, volatility will remain a reality and we expect to face more input cost pressure than in 2024," Ambev said in its statement. "Nonetheless, we will continue to work to find opportunities and enhance efficiency, pursuing our ambition of expanding consolidated margins." MARKET REACTION Sao Paulo-traded shares in Ambev (ABEV3.SA) , opens new tab rose more than 5% in early trading, making it the biggest gainer on local benchmark stock index Bovespa (.BVSP) , opens new tab, which was up 0.4%. Analysts at JPMorgan highlighted stronger margins in Ambev's international division. "We think the market should welcome these results, despite the weak Brazil beer top line. It should also bring upside risk to our and consensus figures," they said. ($1 = 5.7396 reais) Sign up here. https://www.reuters.com/business/retail-consumer/brazils-ambev-posts-higher-q4-profit-expects-volatility-ahead-2025-02-26/

2025-02-26 12:35

Multiple finance minister no-shows at start of talks Discussions also overshadowed by sharp disagreements Climate finance, financial reform, inequality in focus CAPE TOWN, Feb 26 (Reuters) - South Africa sought to salvage international talks on tackling global poverty on Wednesday as finance chiefs of several leading economies skipped a gathering of Group of 20 nations in Cape Town held against a backdrop of foreign aid cuts. The two-day meeting comes after the Trump administration announced plans to gut its USAID arm and Britain slashed its aid budget by 40% to divert funds towards defence spending. Disputes over trade, the Ukraine war and how to tackle climate change have long made it hard for the G20 grouping to make serious progress on global challenges, but the latest no-shows risk further undermining its credibility. After U.S. Treasury Secretary Scott Bessent confirmed he would not attend, finance ministers from Japan, India and Canada also pulled out. Others cut short their presence and the European Union's top economic official chose to stay away. "It is now more important than ever that the members of the G20 work together," South African President Cyril Ramaphosa said in opening remarks appealing for multilateral cooperation. "It is vital to ensuring that the rights and interests of the vulnerable are not trampled beneath the ambitions of the powerful." The high-profile absences further reduce chances of agreement on a meaningful communique at the end of the meeting. There also seemed little hope of major progress on issues that Ramaphosa as host wanted to target: scant climate finance from rich nations and reform of a financial system that penalises poor countries, as well as widening inequalities. "The absence of key officials at the G20 finance meetings further underscores the diminishing commitment to global poverty reduction at a time when it's needed most," said Dirk Willem te Velde, Director of the International Economic Development Group at ODI Global, calling the aid cuts "devastating news". The grouping of the world's 20 major economies was formed after the Asian financial crisis in 1999 to improve cooperation in addressing crises that spill across international borders. G20 countries account for 85% of global gross domestic product and 75% of international trade. South Africa's finance minister Enoch Godongwana said the host appreciated the "scheduling challenges" facing some delegations but added: "The G20 is a year-long process with numerous engagement opportunities." Salvatore Nocerino, aid policy lead of Oxfam, said the non-attendances were particularly unfortunate given that the G20 was being hosted by an African country. "It is an opportunity to really address this distrust between the (global) North and South. So I think wasting that is also not smart," he said. U.S. President Donald Trump's demands that Europe step up to protect any peace deal in Ukraine and take more responsibility for its own security has forced capitals there to work out how they can ramp up defence spending from stretched budgets. "It's clear we are facing a more dangerous world, and I will not hide from this reality," British finance minister Rachel Reeves said, adding that investment, free trade and reforms remained the best ways of achieving sustainable growth. CLIMATE WOES South Africa had hoped to make the G20 a platform for putting pressure on rich countries to do more to tackle climate change, and to give more towards poorer countries' transitions to green energy and adaptation to worsening weather. Energy Minister Kgosientsho Ramokgopa told Reuters that Trump's climate change scepticism would "reconfigure the conversation" on green energy. "Where it leads is anyone's guess," he said, adding that some countries might reconsider the scale and pace of their transition from fossil fuels to green energy as a result. Some analysts said the retreat of the G20's biggest economy from the discussions raised questions about its relevance. Others saw an opportunity for moving ahead without the United States. "There could very well be synergies between large portions of what's left by excluding the U.S. on particular issues," said Daniel Silke, director of the Political Futures Consultancy. "It's an opportunity for South Africa to take its leadership role." Sign up here. https://www.reuters.com/world/g20-finance-ministers-central-bankers-meet-amid-fractious-geopolitics-2025-02-26/

2025-02-26 12:34

TSX ends up 0.5% at 25,328.36 Materials group adds 1.6%, tech gains 1.2% National Bank falls 5.5% after earnings report Energy falls 0.5%; oil hits 2-month low Feb 26 (Reuters) - Canada's main stock index rose on Wednesday as technology and metal mining shares notched gains, despite confusion around the timing of a deadline for U.S. tariffs on Canadian goods. The S&P/TSX composite index (.GSPTSE) , opens new tab ended up 124.38 points, or 0.5%, at 25,328.36, its third straight day of gains. U.S. President Donald Trump raised hopes for another month-long pause on 25% tariffs on imports from Mexico and Canada, saying they could take effect on April 2. A White House official, however, said Trump's previous March 4 deadline for the import duties remained in effect. "Even though the tariffs could be a bloodbath for Canada, the largest-capitalization stocks on the TSX aren't that exposed to tariffs," said Barry Schwartz, chief investment officer at Baskin Wealth. Financial, telecom, real estate, energy and materials shares account for roughly two-thirds of the TSX's weighting, and those sectors would likely escape the direct impact of tariffs or benefit from carve-outs. "There is no better index for safe havens than the TSX. It's dominated by mature dividend-paying companies that are not exposed to the high-growth areas," Schwartz said. The TSX is set to reach a record high by the end of 2025, helped by lower borrowing costs, a Reuters poll found. The Bank of Canada has cut its benchmark rate by two percentage points since June to a level of 3%. The materials group, which includes fertilizer companies and metal mining shares, rose 1.6%. Technology added 1.2% and heavily weighted financials ended 0.2% higher. National Bank of Canada (NA.TO) , opens new tab set aside larger-than-expected reserves for bad loans, signaling challenges ahead even as strong income from dealmaking helped deliver a profit beat. The company's shares ended 5.5% lower. Energy was a drag, falling 0.5%, as the price of oil settled at a two-month low of $68.62 a barrel. Sign up here. https://www.reuters.com/markets/tsx-futures-advance-upbeat-bank-earnings-2025-02-26/

2025-02-26 12:21

FRANKFURT, Feb 26 (Reuters) - Spending plans for the period after 2029 by Germany's power grid operator E.ON (EONGn.DE) , opens new tab could come early in 2026, depending on the timing of the national regulator's decision-making on return-on-capital rules this year, the company said on Wednesday. "It could be early 2026," said CFO Nadia Jakobi in a call with analysts after presenting financial results for 2024, allowing for a loose timetable that the energy regulator has published for the current calendar year. The E.ON group said earlier that it would keep investments largely stable in 2024-2028 but would not commit to spending thereafter as long as levels of permitted returns on infrastructure spending remained unclear. Sign up here. https://www.reuters.com/business/energy/eon-decisions-post-2029-investment-could-come-early-next-year-cfo-says-2025-02-26/