2025-02-24 20:18
Loonie trades in a range of 1.4183 to 1.4244 Speculators cut bearish bets on the currency Price of U.S. oil settles 0.4% higher Bond yields ease across the curve TORONTO, Feb 24 (Reuters) - The Canadian dollar steadied against its U.S. counterpart on Monday, extending its recent sideways trading pattern, as investors awaited greater clarity on prospects of U.S. trade tariffs and additional easing from the Bank of Canada. The loonie was trading unchanged at 1.4220 per U.S. dollar, or 70.32 U.S. cents, after moving in a range of 1.4183 to 1.4244. The currency has recovered from a 22-year low of 1.4793 on February 3 but gains have stalled since mid-month. Uncertainty about tariffs and the next Bank of Canada policy decision has contributed to "the recent choppy, sideways trading in the currency," said Tony Valente, senior FX dealer at AscendantFX. Canada and Mexico are expected to intensify efforts this week to avoid punishing 25% tariffs on their exports to the U.S. in talks to persuade President Donald Trump's administration that their steps to increase border security and curb fentanyl trafficking are working ahead of a March 4 deadline. On Friday, BoC Governor Tiff Macklem said tariffs and subsequent retaliation from Canada could almost wipe out any domestic growth in 2025 and 2026 and cause a one-time spike in inflation. Investors see a 37% chance that the central bank would cut its benchmark interest rate by a further 25 basis points at a policy announcement on March 12 after the rate was lowered last month to 3%. Speculators have reduced their bearish bets on the Canadian dollar, data from the U.S. Commodity Futures Trading Commission showed on Friday. As of February 18, net short positions had decreased to 144,643 contracts from 150,834 in the prior week. The price of oil , one of Canada's major exports, settled 0.4% higher at $70.70 a barrel as investors awaited clarity on talks to end the war in Ukraine. Canadian bond yields edged lower across the curve. The 10-year was down 1.2 basis points at 3.096%. Sign up here. https://www.reuters.com/markets/currencies/canadian-dollar-sticks-recent-sideways-trading-pattern-2025-02-24/
2025-02-24 20:10
Steep US port fees to discourage use of Chinese vessels USTR to hold March 24 hearing on fees, shipping restrictions US shipbuilding has seen steep decline since 1970s Trump trade team follows up on shipping probe started under Biden WASHINGTON, Feb 24 (Reuters) - The U.S. Trade Representative's office has proposed charging up to $1.5 million for Chinese-built vessels entering U.S. ports as part of its investigation into China's growing domination of the global shipbuilding, maritime and logistics sectors. USTR said in a January 16 report on a probe , opens new tab launched during the administration of former President Joe Biden that China increased its share of global shipbuilding tonnage from 5% in 1999 to over 50% in 2023 because of massive state subsidies and preferential treatment for state-owned enterprises that are squeezing out private-sector international competitors. The agency said that U.S. shipyards were building 70 ships in 1975, but just five annually today. In a Federal Register notice , opens new tab published late on Friday, USTR detailed its proposed fees and other shipping restrictions. The agency scheduled a March 24 public hearing on the remedies. The probe was launched in April 2024 at the request of the United Steelworkers and four other unions, and conducted under Section 301 of the Trade Act of 1974, as a way to rebuild an industry that has been in deep decline since the 1970s, when Japan and South Korea dominated shipbuilding. The results of the probe were announced last month, just days before Donald Trump was sworn in as president. The proposed remedies include port entrance fees of up to $1 million per vessel owned by Chinese maritime transport operators, such as the state-owned China Ocean Shipping Co Ltd. Alternatively, the U.S. would charge $1,000 per net ton of a vessel's cargo capacity. Non-Chinese maritime transport operators operating Chinese-built ships would pay up to $1.5 million per port entry, according to the notice. Those with greater than 50% Chinese-built fleets would pay $1 million per vessel entry regardless of origin. The fee would fall to $750,000 if the Chinese fleet percentage was between 25% and 50% and to $500,000 if under 25%. A second set of fees in similar amounts could apply to maritime operators with vessels on order from Chinese shipyards to be delivered over the next two years. USTR said that under the proposal the fees could be refunded by up to $1 million per entry into a U.S. port by a U.S.-built vessel employed in international maritime services. U.S. VESSEL REQUIREMENTS The remedies also would require at least 1% of U.S. exports to be shipped on U.S. flagged-vessels for the first two years, including capital goods, consumer goods, agricultural products, and chemical petroleum and gas products. The percentage would increase to 3% U.S. exports after two years, and 5% after three years. After three years, 3% of U.S. exports would have to be shipped on American-built ships. After seven years, the restrictions would require at least 15% of U.S. goods to be transported on U.S.-flagged vessels, with 5% on American-built ships. USTR also said that it recommends restricting access to U.S. shipping data for China's National Transportation and Logistics Public Information Platform or banning U.S. port terminals from using LOGINK software. Sign up here. https://www.reuters.com/markets/commodities/ustr-proposes-charging-chinese-ships-up-15-million-enter-us-ports-2025-02-24/
2025-02-24 20:07
WASHINGTON, Feb 24 (Reuters) - A bipartisan group of lawmakers on Monday are introducing legislation to toughen U.S. trade enforcement laws and address new concerns about China's Belt and Road Initiative. Republican Senator Todd Young and Democratic Senator Tina Smith are leading a group of more than dozen senators introducing legislation that seeks to address China's trade practices and give the U.S. Commerce Department new tools. "China has distorted the free market by dumping undervalued products and subsidizing industries, actions designed to harm American businesses and workers," Young said. Sign up here. https://www.reuters.com/world/us/us-lawmakers-take-aim-chinas-trade-practices-2025-02-24/
2025-02-24 20:06
NEW YORK, Feb 24 (Reuters) - The American Petroleum Institute trade group on Monday pressed for a nationwide policy on higher-ethanol blends of gasoline after the President Donald Trump's administration said on Friday it would move ahead with expanded sales of the product in certain Midwestern states. The U.S. Environmental Protection Agency said on Feb. 21 it would uphold an April 28 implementation date for a request from eight Midwest governors to allow year-round sales of gasoline containing 15% ethanol, a blend known as E15. EPA's action is meant to enable both E15 and the more widely available E10 fuel blends to be sold during the summer, where the existing policy often keeps E15 out of the market. The change was sought by Midwestern governors and first charted under former President Joe Biden. While biofuel producers have long wanted expanded sales of the E15 blend, they would prefer a nationwide solution that goes beyond just the Midwest region. The API also prefers a nationwide policy, as some industry players worry a fragmented market could lead to localized supply disruptions. API told Reuters the EPA's decision to go ahead with the Midwest expansion reflects the need for Congressional action for a nationwide solution. This "would prevent a patchwork of state-by-state policies while ensuring consumers have access to the fuels they depend on every day," said Will Hupman, API's vice president of downstream policy. A bipartisan group of U.S. senators this month reintroduced a bill that would allow nationwide sales of E15. Meanwhile, other oil groups such as the American Fuel and Petrochemical Manufacturers and the Fueling American Jobs Coalition spoke out against the EPA's decision. AFPM "calls on the affected Governors to protect consumers in their states from likely increased gasoline costs and supply disruptions by requesting more time for the market to prepare," said Geoff Moody, senior vice president of government relations and policy at AFPM. The EPA's action will apply to Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin, though EPA administrator Lee Zeldin said the agency will consider granting one-year delays for states that seek additional compliance time, something already sought by Ohio. The agency's decision is an early indicator of the new Trump administration’s approach to biofuel policy. During Trump’s first term, some debates pitting oil refiners against biofuel producers reached the president, prompting the EPA to weigh policy shifts on the treatment of refiners and federal quotas mandating use of the alternative fuels. Sign up here. https://www.reuters.com/business/energy/oil-trade-group-pushes-us-national-ethanol-policy-after-epa-okays-midwest-2025-02-24/
2025-02-24 19:37
MOSCOW, Feb 24 (Reuters) - Russian President Vladimir Putin held a meeting with officials on Monday to discuss rare earth metals production, which he described as a strategic reserve vital for Russia's future competitiveness and economic development, the Kremlin said. Putin highlighted the national project ‘New Materials and Chemistry,’ launched this year to enhance the domestic industry in new materials. This project, Putin said, aims to establish the complete cycle of the rare and rare-earth metals industry, from extraction to the production of high-tech goods, significantly boosting output. Sign up here. https://www.reuters.com/world/europe/putin-holds-meeting-rare-earth-metals-aims-significantly-boost-output-2025-02-24/
2025-02-24 19:04
HAVANA, Feb 24 (Reuters) - Cuba's top cigar maker Habanos said on Monday that sales of the company's luxurious smokes had soared to a record $827 million in 2024 as revenue poured in from fast-growing markets in China and elsewhere in Asia. Habanos Vice President Jorge Perez said revenue jumped 16% over the previous year as the company reaped high-end demand from a growing class of wealthy smokers in Asia, a region which now accounts for nearly one-quarter of the company's sales globally. Cuba's cigar business, together with rum exports, is among the crisis-racked country's last thriving export industries and critically important for raising foreign currency necessary to buy food, fuel and medicine. Habanos S.A. is owned 50% by Cuba's communist-run government and 50% by a consortium of Asian investors under the umbrella group Tabacalera. Soaring sales in 2024 came even as Cuban growers struggle to recover from Hurricane Rafael in November and Hurricane Ian in 2022, both of which ravaged the western tobacco growing provinces of Artemisa and Pinar del Rio, damaging infrastructure and crops. Jose Maria Lopez, a Habanos vice president for development, told Reuters at the company's annual festival outside Havana that tobacco production was "guaranteed" for its cigar-making despite recent natural disasters. "The total tobacco production in Cuba may be reduced but those are poorer quality tobaccos that would never enter the production of our export cigars," Lopez said. "Only a small part of all national tobacco production is dedicated to cigars, and that amount, from the highest quality leaves, is guaranteed," he added. Cuba's luxuriously smooth tobacco has long topped the cigar industry, with aficionados touting the Caribbean island's unique variety of tobacco, rich soils, and ideal climate - as well as Habanos' insistence on rolling its cigars by hand. Executives told reporters that China once again topped sales in terms of value, followed by Spain, Switzerland, Britain and Germany. Sign up here. https://www.reuters.com/business/retail-consumer/cubas-top-cigarmaker-breaks-record-with-sales-827-million-2024-2025-02-24/
