2025-02-26 00:49

SAO PAULO, Feb 25 (Reuters) - The governor of the northern Brazilian state of Para said on Tuesday he will propose a bill to revoke a state tax on grains production. Governor Helder Barbalho said in a post on X his decision came after listening to farmers about the law, which was set to take effect next month. Among other provisions, the tax would impose a 4.32 real ($0.7527) charge on a 60-kilo bag of soybeans and a 2.09 real ($0.3641) charge on a 60-kilo bag of corn. In a statement, soy farmers' lobby Aprosoja Para dubbed the decision an "important victory," adding it was "essential to the competitiveness and development of the sector." The governor's decision comes amid criticism from farmers and an industry lobby regarding another new state law imposing a 1.8% levy on grain exports from neighboring Maranhao. While Maranhao state has defended the levy, saying proceeds from it will go toward investments in logistics, benefiting the entire agribusiness sector, industry group Abiove, which represents global grain merchants, filed a suit against the measure last week. ($1 = 5.7396 reais) Sign up here. https://www.reuters.com/world/americas/brazils-para-state-set-reverse-tax-grain-production-2025-02-26/

2025-02-26 00:08

New cars should be mostly electric from 2030 Renewable electricity must soar Recommends drop in meat consumption Half of homes to have heat pumps by 2050 LONDON, Feb 26 (Reuters) - Britain must end its reliance on fossil fuels, switch to electric vehicles and heat pumps, and eat less meat to reach its 2050 net zero target, the country's climate change advisers said on Wednesday. The advice, in the Climate Change Committee's (CCC) seventh carbon budget for 2038-2042, lays bare the challenge of reaching the goal and comes as the government is under pressure to reduce bills after the energy regulator announced a third consecutive quarterly price rise this week. The CCC said Britain must cut emissions by 87% compared with 1990 levels by 2040 to reach net zero and targets set under the international Paris Climate agreement. Britain's GHG emissions fell almost 53% by the end of 2023 on 1990 levels largely due to cuts in the power sector due as renewable electricity grew and coal plants closed. "Now we need to see action on transport, buildings, industry and farming. This will create opportunities in the economy, tackle climate change, and bring down household bills," Piers Forster, Interim CCC Chair, said in a statement. The report, designed to show how the target can be met, recommends 80% of cars on the road by 2040 should be fully electric which would require nearly all new car sales to be electric from 2030. More than half of homes should also be heated by heat pumps by 2040, up from around 1% now. Transferring heating and transport to green electricity will require twice as much electricity as today, the report said and need a massive ramp up in renewable power. The government has made decarbonising the electricity sector a key goal and said it will ultimately lead to lower energy bills and slash the country’s reliance on energy imports. The CCC said the transition would see savings for households by around 2040 and cut energy bills by some 700 pounds ($883.82) compared with current levels by 2050. The report recommends making electricity cheaper by removing policy costs from bills, making it easier to install technology like charging points and offering support to install heat pumps. In the budget average, meat consumption also falls 25% by 2040 and 35% by 2050 compared with 2019 levels. Meat consumption fell 10% between 2020 and 2022 and the CCC said its modelling reflected a continuation of this trend and expectation of cheaper and tastier meat alternatives. The report did not examine the impact of expansion at Heathrow or other airports and said aviation emissions should fall 17% by 2040 compared with 2023. The reduction is based on the industry rolling out sustainable fuel, becoming more efficient, managing demand growth and paying for carbon removal credits to offsets. Under the Climate Change Act, Britain must show how it will reach legally binding climate targets and set five-yearly carbon budgets 12 years in advance. The government has adopted the previous six carbon budgets put forward by the CCC. ($1 = 0.7920 pounds) Sign up here. https://www.reuters.com/sustainability/climate-energy/britain-needs-huge-switch-evs-heat-pumps-eat-less-meat-hit-net-zero-2025-02-26/

2025-02-26 00:06

Consumer confidence posts biggest drop in 3-1/2 years Nvidia dips ahead of Wednesday earnings Lilly up on launching higher-dose, discounted Zepbound vials Indexes: Dow up 0.37%, S&P 500 off 0.47%, Nasdaq down 1.35% Feb 25 (Reuters) - U.S. stocks struggled on Tuesday, with the S&P 500 and the Nasdaq touching one-month lows as a dour consumer confidence report put mounting economic uncertainties into sharp relief. The S&P 500 and the Nasdaq both notched their fourth consecutive sessions in the red, while the Dow ended the day modestly higher. "This is clearly a risk-off day and a continuation of a risk-off month," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. "Many companies are expressing caution about the direction of consumer spending at the moment and today's consumer confidence number bears that out." The mood of the consumer, who props up about 70% of U.S. GDP, has dimmed considerably in February, according to The Conference Board's consumer confidence index, which registered its steepest monthly drop since August 2021. Rising consumer uncertainties were laid bare by an 11.3% plunge in the near-term expectations component, well below the level associated with impending recession, suggesting Americans are growing anxious about the potential negative economic impact of the policies of President Donald Trump's administration. Tuz said the political environment was not helping. "Headlines have been pretty dramatic ... and as a result consumers and maybe businesses are sitting on their hands to see how things shake out before making major purchasing decisions or other business decisions," Tuz said. "There are just lots of reasons to put off buying things today, including stocks." Richmond Federal Reserve President Tom Barkin said on Tuesday that current uncertainties call for a measured, cautious approach to monetary policy. Interest-rate futures imply the U.S. Federal Reserve will hold its key interest rate steady for the first half of the year, according to data compiled by LSEG. The CBOE market volatility index (.VIX) , opens new tab, widely known as the "fear index," spiked to its highest level since January 27. Bitcoin , often viewed as a barometer of investor risk appetite, dropped 6.1%. The Dow Jones Industrial Average (.DJI) , opens new tab rose 159.95 points, or 0.37%, to 43,621.16, the S&P 500 (.SPX) , opens new tab lost 28.00 points, or 0.47%, to 5,955.25 and the Nasdaq Composite (.IXIC) , opens new tab lost 260.54 points, or 1.35%, to 19,026.39. Among the 11 major sectors in the S&P 500, communication services (.SPLRCL) , opens new tab fell the most, with consumer staples (.SPLRCS) , opens new tab enjoying the biggest percentage gains. Nvidia (NVDA.O) , opens new tab dropped 2.8% ahead of the chipmaker's much-anticipated quarterly earnings report, expected after the bell on Wednesday, pulling the Philadelphia SE Semiconductor index down 2.3%. U.S. officials, in a bid to restrict Beijing's technological capabilities, are aiming to restrict the quantity and types of Nvidia chips that can be exported to China without a license, according to a Bloomberg report. Bitcoin weakness weighed on crypto stocks. Coinbase (COIN.O) , opens new tab and MicroStrategy (MSTR.O) , opens new tab dropped 6.4% and 11.4%, respectively. Zoom Communications (ZM.O) , opens new tab slid 8.5% following its disappointing annual revenue forecast. U.S.-listed shares of Li Auto jumped 13.2% after the company unveiled its first electric SUV. Eli Lilly (LLY.N) , opens new tab rose 2.3% after the drugmaker said it has begun selling higher doses of its weight-loss drug Zepbound in vials in the U.S., at a discount to the injector-pen versions. Solventum (SOLV.N) , opens new tab jumped 9.5% after drug manufacturer Thermo Fisher said it will buy the company's purification and filtration business for about $4.1 billion. Advancing issues outnumbered decliners by a 1.2-to-1 ratio on the New York Stock Exchange. There were 89 new highs and 163 new lows on the NYSE. On the Nasdaq, 1,720 stocks rose and 2,714 fell as declining issues outnumbered advancers by a 1.58-to-1 ratio. The S&P 500 posted 31 new 52-week highs and eight new lows while the Nasdaq Composite recorded 44 new highs and 305 new lows. Volume on U.S. exchanges was 16.32 billion shares, compared with the 15.32 billion average for the full session over the last 20 trading days. Sign up here. https://www.reuters.com/markets/us/futures-dip-markets-weigh-trade-risks-nvidia-down-before-results-2025-02-25/

2025-02-26 00:04

Mexico bans planting of GM corn, sparking potential U.S. tensions Sheinbaum's reform brands native corn as national identity GCMA warns of U.S. retaliatory measures over GM corn restrictions MEXICO CITY, Feb 25 (Reuters) - Mexico's lower house of Congress on Tuesday approved a constitutional reform to ban the planting of genetically modified (GM) corn, a move that could lead to more tension with the United States after the resolution of a trade dispute, analysts said. The initiative by President Claudia Sheinbaum comes after a trade-dispute panel ruled in December that Mexico's restrictions on GM corn, mostly imported from the United States, violate the U.S.-Mexico-Canada Agreement (USMCA). As a result of the USMCA panel ruling, Mexico repealed its import restrictions on GM corn for human, livestock and industrial uses. Mexico, the birthplace of modern corn, had already prohibited the commercial planting of GM corn strains, arguing they will contaminate native strains of the grain, but Sheinbaum pledged to officially prohibit the planting of GM corn within its territory via the Constitution. With Sheinbaum's reform approved with 409 votes in favor and 69 against, native corn is branded as an "element of national identity" and GM corn is officially banned from being planted in Mexico. "Any other use of genetically modified corn must be evaluated ... to be free of threats to the biosecurity, health and biocultural heritage of Mexico and its population," the text of the reform states. The reform will now go to the Senate for final approval. Mexico buys about $5 billion of U.S. GM corn each year, mostly for livestock feed. Some analysts said the reform could spark a new controversy with the U.S. because it also refers to the use of GM corn, and not just the planting of the grain. The Agricultural Markets Consulting Group (GCMA), a major consultancy in Mexico said the government's decision to strengthen its position against GM corn generates "uncertainty" in the relationship with the United States, its primary source of yellow corn imports, which are mainly dedicated to livestock feed. "Following the adverse ruling by the USMCA dispute panel, the insistence on these restrictions is likely to trigger retaliatory measures by the US government," GCMA said in a recent report. Sign up here. https://www.reuters.com/markets/commodities/after-trade-dispute-mexico-officially-bans-planting-gm-corn-2025-02-26/

2025-02-25 23:26

NAPERVILLE, Illinois, Feb 25 (Reuters) - The United States is just one week away from potentially launching a trade war with Mexico, its top corn buyer. Strong U.S. corn sales to Mexico this year have sparked concern that buyers might be trying to front-run any trade conflict and thus could be poised to reduce purchases significantly in the coming months. But the data does not yet support this stockpiling theory. As of mid-February, Mexico had secured a record 17.2 million metric tons (678 million bushels) of U.S. corn to be shipped in 2024-25. This represents 70% of the U.S. Department of Agriculture’s outlook for 2024-25 Mexican corn imports. That share is a five-year low when comparing past mid-February sales volumes against import forecasts as of each February. So even though Mexico's recent U.S. corn haul is large, it is not necessarily unusual. By comparison, the share averaged 77% over the past four years. These shares have been particularly high in recent years because USDA has often underestimated Mexican corn imports early on. In the last decade, final Mexican corn imports were lower than what USDA had predicted in February just two times. Mexico, the world’s largest corn importer, has increasingly relied on imports to meet consumption needs. Its own corn crop has grown by about 15% over the last decade while corn consumption has expanded by 50%. Two consecutive crop shortfalls in Mexico have led to the recent spike in corn imports, benefiting U.S. producers. In both 2023-24 and 2024-25, imports are estimated to account for 51% of the country’s corn use, well above the previous three-year average of 40%. U.S. corn typically accounts for at least 90% of Mexico’s annual imports. Despite U.S. tariff threats against Mexican goods during President Donald Trump’s first term, Mexico continued to secure and import record volumes of U.S. corn at that time. US EXPORT SUCCESS Not only is Mexico’s buying pace of U.S. corn largely normal considering import targets, its share of all U.S. corn sales is also normal. As of mid-February, Mexico accounted for 36% of all 2024-25 U.S. corn export sales, equal to the five-year average and well below the year-ago record of 45%. This is a sign of good health, suggesting U.S. exporters’ stellar season does not excessively hinge on Mexico. U.S. corn exports to all destinations have been humming along, potentially breaking a 35-year-old monthly record in January and challenging a weekly record earlier this month. March-May is typically the busiest time for U.S. corn shipments. As of Thursday, U.S. corn export inspections, a proxy for exports, were up 32% year-over-year. USDA has total 2024-25 U.S. exports up 7% on the year, but this is not directly comparable with the inspections increase because of the seasonality of shipments. So far, the United States has shipped about 55% of Mexico’s 2024-25 corn bookings, a slightly above average share. Looking to next season, Mexico’s strong U.S. corn imports could be somewhat tempered should its own crop thrive this year. However, if trade relations allow, Mexico’s growing demand might very well keep U.S. producers on the hook to supply regardless of Mexico’s crop outcome. Karen Braun is a market analyst for Reuters. Views expressed above are her own. Sign up here. https://www.reuters.com/markets/commodities/mexicos-massive-us-corn-haul-shows-no-signs-trade-jitters-braun-2025-02-25/

2025-02-25 23:21

Feb 25 (Reuters) - Norway is to provide financing for Ukrainian purchases of its natural gas, Ukraine's Naftogaz company said on Tuesday, against the background of a rise in Ukrainian imports as the war with Russia batters the country's energy system. The assistance is part of a 380 million euro ($400 million) aid package, financed through the European Bank for Reconstruction and Development, intended to bolster Ukraine's energy security . "This assistance is critically important for the stability of Ukraine’s energy system," Roman Chumak, CEO of the state-owned Naftogaz Group said in a statement. "I am grateful to Norway and the EBRD for their continued support and commitment to helping our country." Ukrainian President Volodymyr Zelenskiy noted the gas procurement grant in his nightly video address, saying it was part of a broader assistance programme valued at $3.5 billion. Norwegian Prime Minister Jonas Gahr Store, quoted in the Naftogaz statement, said Ukraine needed energy support in addition to military aid. That support, including funding for gas purchases, he said, "is therefore an important component of Norway's assistance”. A senior industry source told Reuters last week that Ukraine planned to import up to 800 million cubic metres (mcm) of gas from Europe in February and March to compensate for a sometimes 40% drop in production after Russian missile strikes on the sector. Russia has focused past missile and drone attacks on Ukraine's electricity sector since its February 2022 full-scale invasion, but has stepped up attacks on gas fields in recent weeks. Naftogaz and major private energy company DTEK have said Russia has attacked and damaged their facilities at least twice so far in February. Sign up here. https://www.reuters.com/business/energy/norway-finance-ukrainian-gas-purchases-naftogaz-says-2025-02-25/