2025-02-19 20:55

Bank of Mexico halves growth forecast for 2023 Inflation expected to take longer to reach 3% target Interest rate cuts likely as inflation cools MEXICO CITY, Feb 19 (Reuters) - The Bank of Mexico on Wednesday halved its growth forecast for the Mexican economy this year and even sees a possibility it will slide into a recession, contracting by as much as 0.2%. It said Latin America's second-largest economy is now forecast to grow just 0.6% this year, from 1.2% previously, and also said it now expects inflation to take longer to ease to its target of 3.0%. "The economy could slow down even further in 2025, in an environment in which high uncertainty due to internal and external factors," it said. It called the Trump administration's actions on migration, trade and other areas "an important" challenge for Mexican growth projections but added domestic factors were also boosting uncertainty. Banxico, as the central bank is known, also forecast annual headline inflation for the fourth quarter of 3.3%, versus a prior projection of 3%. While some analysts consider core inflation, which excludes volatile energy and food prices, as more reliable, the bank sees it running at the same 3.3% pace in the year's final quarter. Still, Banxico said the inflationary environment would likely permit it to continue cutting the benchmark interest rate. Earlier this month, Banxico cut the key interest rate by 50 basis points, saying it could cut by a similar magnitude in the future as inflation cools and after the economy contracted slightly late last year. Sign up here. https://www.reuters.com/world/americas/bank-mexico-halves-2025-growth-view-sees-inflation-taking-longer-reach-target-2025-02-19/

2025-02-19 20:54

California plan adopted by 11 states requires 35% zero emission vehicle sales by 2026 EPA also submitting two other waivers to Congress including one on heavy trucks Automakers say California rules are not achievable, while state says crucial to meeting environmental targets WASHINGTON, Feb 19 (Reuters) - The U.S. Environmental Protection Agency said on Wednesday it has submitted the Biden administration's approval of California's landmark plan to end the sale of gasoline-only vehicles by 2035 to Congress for review and potential repeal. The decision by the new Trump administration gives the Republican-led Congress a chance to repeal the Biden decision to grant California a waiver under the Clean Air Act for its program under the Congressional Review Act. As a candidate, President Donald Trump vowed to rescind approvals granted by the EPA to California to require more EVs and tighter vehicle emissions standards. Those rules have been adopted by another 11 states, including New York, Massachusetts and Oregon. EPA Administrator Lee Zeldin, who was nominated by Trump, said the "American people are struggling to make ends meet while dealing with rules that take away their ability to choose a safe and affordable vehicle for their families." California's rules require 35% of vehicles in the 2026 model year to be a zero-emission model- a figure automakers say is impossible to meet given current sales - rising to 68% by 2030. The state says the rule is crucial to meeting greenhouse gas emission reduction targets and cutting smog-forming pollutants. The EPA under former President Joe Biden took the position that the waiver was not a regulation and therefore not reviewable by Congress. It remains an open question if Congress will be able to legally vote on the issue. California first announced a plan in 2020 to require that by 2035 at least 80% of new cars sold be electric and up to 20% plug-in hybrid models. The EPA also granted in December a waiver for California's “Omnibus” low-NOx regulation for heavy-duty highway and off-road vehicles and engines. The EPA in March 2022 reinstated a waiver for California to set its own tailpipe emissions limits and zero-emission vehicle rules through 2025, reversing a 2019 decision under Trump's first administration. The Trump EPA on Wednesday submitted the Omnibus waiver and 2022 waiver to Congress for possible repeal. The U.S. Transportation Department is separately moving to undo aggressive fuel economy rules adopted by Biden. The Alliance for Automotive Innovation, representing General Motors (GM.N) , opens new tab, Volkswagen (VOWG_p.DE) , opens new tab, Toyota Motor (7203.T) , opens new tab and other automakers argue California's vehicle rules "will depress economic activity, increase costs and limit vehicle choice" and will require automakers to sell fewer vehicles in the 12 states to comply. Sign up here. https://www.reuters.com/world/us/us-epa-submits-biden-approval-california-ev-plan-congress-2025-02-19/

2025-02-19 20:53

Trump calls Zelenskiy 'a dictator without elections' Trump speaks after Zelenskiy accuses him of being trapped in Russian disinformation bubble 'We will defend our right to exist,' Ukraine's foreign minister says in response to Trump Putin says US-Russia trust is key to any Ukraine peace deal EU floats plan to boost weapons supplies to Ukraine WASHINGTON/KYIV, Feb 19 (Reuters) - U.S. President Donald Trump denounced Ukrainian President Volodymyr Zelenskiy as a "dictator" on Wednesday and warned he had to move quickly to secure peace or risk losing his country, deepening a feud between the two leaders that has alarmed European officials. The extraordinary attacks - a day after Trump claimed Ukraine was to blame for Russia's 2022 invasion - heightened concerns among U.S. allies in Europe that Trump's approach to ending the Russia-Ukraine conflict could benefit Moscow. Less than a month into his presidency, Trump has upended U.S. policy on the war, ending a campaign to isolate Russia with a Trump-Putin phone call and talks between senior U.S. and Russian officials that have sidelined Ukraine. "A Dictator without Elections, Zelenskyy better move fast or he is not going to have a Country left," Trump wrote on social media, using an alternate spelling for the Ukrainian president's name. In response, Ukrainian Foreign Minister Andrii Sybiha said no one could force his country to give in. "We will defend our right to exist," Sybiha said on X. Zelenskiy's five-year term was supposed to end in 2024, but presidential and parliamentary elections cannot be held under martial law, which Ukraine imposed in February 2022 in response to Russia's invasion. Trump's outburst followed Zelenskiy's comments on Tuesday that the U.S. president was parroting Russian disinformation when he asserted that Ukraine "should never have started" the war, which began with Russia's full-scale invasion three years ago. U.S. Vice President JD Vance on Wednesday warned Zelenskiy against attacking Trump. "The idea that Zelenskiy is going to change the president's mind by badmouthing him in public media ... everyone who knows the president will tell you that is an atrocious way to deal with this administration," Vance said in his West Wing office, the Daily Mail reported. Russia has seized some 20% of Ukraine and is slowly but steadily gaining more territory in the east. Moscow said its "special military operation" responded to an existential threat posed by Kyiv's pursuit of NATO membership. Ukraine and the West call Russia's action an imperialist land grab. The Ukrainian leader said Trump's assertion that his approval rating was just 4% was Russian disinformation and that any attempt to replace him would fail. "We have evidence that these figures are being discussed between America and Russia. That is, President Trump ... unfortunately lives in this disinformation space," Zelenskiy told Ukrainian TV. The latest poll from the Kyiv International Institute of Sociology, from early February, found 57% of Ukrainians trust Zelenskiy. Following Trump's latest remarks, U.N. spokesperson Stephane Dujarric said Zelenskiy "sits in office after duly-held elections." When asked who started the war, Dujarric responded that Russia had invaded Ukraine. German Chancellor Olaf Scholz said it was "false and dangerous" for Trump to call Zelenskiy a dictator, German newspaper Spiegel reported. A few of Trump's fellow Republicans in Congress said they disagreed with the president's claim that Zelenskiy was a dictator and Ukraine bore responsibility for Russia's invasion. But they stopped short of criticizing Trump directly, with Senate Majority Leader John Thune - a longtime supporter of Ukraine - saying Trump needed "space" to work on a peace deal. EUROPE LEFT SCRAMBLING European officials have been left shocked and flat-footed by the Trump administration's moves on Ukraine in recent days. At a second meeting of European leaders in Paris, hastily arranged by French President Emmanuel Macron earlier in the day, there were more calls for immediate action to support Ukraine and bolster Europe's defense capabilities, but few concrete decisions. Macron and British Prime Minister Keir Starmer will visit Washington next week, amid other meetings aimed at bringing an end to Russia's war in Ukraine, according to White House national security adviser Mike Waltz. Following Trump's latest attacks, Zelenskiy discussed approaches to a peace settlement with NATO Secretary General Mark Rutte, Macron and Starmer, including the importance of security guarantees. Starmer expressed support for Zelenskiy as Ukraine's democratically elected leader and said it was "perfectly reasonable" to suspend elections during wartime, Starmer's office said on Wednesday. Kellogg, the U.S. Ukraine envoy, said as he arrived in Kyiv that he understood "the need for security guarantees," adding that part of his mission would be "to sit and listen." The 27-member European Union on Wednesday agreed on a 16th package of sanctions against Russia, including on aluminium and vessels believed to be carrying sanctioned Russian oil. PUTIN, TRUMP WANT SUMMIT Trump said he may meet Putin this month. In Moscow, Putin said that Ukraine would not be barred from peace negotiations, but success would depend on raising the level of trust between Moscow and Washington. Putin, speaking a day after Russia and the U.S. met in Riyadh to hold their first talks on how to end the conflict, also said it would take time to set up a summit with Trump, which both men have said they want. "We need to ensure that our teams prepare issues that are extremely important for both the United States and Russia, including - but not only - on the Ukrainian track, in order to reach solutions acceptable to both sides," Putin said in televised remarks. Ukraine and European governments were not invited to Tuesday's talks in the Saudi capital, which magnified their concern that Russia and the U.S. might cut a deal that ignores their vital security interests. Ukraine was counting on "the unity of Europe and the pragmatism of America," Zelenskiy said in a video address on Wednesday. Trump says Europe must step up to guarantee any ceasefire deal. Zelenskiy has suggested giving U.S. companies the right to extract valuable minerals in Ukraine in return for U.S. security guarantees, but said Trump was not offering that. Sign up here. https://www.reuters.com/world/europe/zelenskiy-says-trump-is-disinformation-bubble-ukraine-2025-02-19/

2025-02-19 20:35

Announcement expected as soon as Thursday Barrick's stock rises on news Deal would see total payment of $438 million to Mali Feb 19 (Reuters) - Canadian miner Barrick Gold has signed a new agreement with the Malian government to end an almost two-year-old dispute over its mining assets in the West African country, four people familiar with the developments told Reuters on Wednesday. Barrick has signed the agreement and it is now up to Mali's government to formally approve the deal, the sources told Reuters. An official announcement could come as early as Thursday. Another source said that though a deal was close, last minute hurdles could still derail it. The Toronto-based miner and Mali have been locked in a dispute since 2023 over the implementation of the West African country's new mining code that gives Mali's government a greater share in the gold mine. As part of the new agreement, Barrick will pay a total of 275 billion CFA or $438 million to the Mali government, in return for the release of detained employees, seized gold, and restarting the operations at the Loulo-Gounkoto mine. Barrick did not immediately respond to an email query by Reuters. A spokesperson for Mali's mines ministry declined to comment. The company's shares were up 3.37% on the Toronto Stock Exchange at 2:38 p.m. A delegation of more than 15 representatives of Malian ministries as well as the private consulting firm Iventus Mining completed a three-day inspection of Barrick's mining complex on Wednesday, according to five sources. Mali late last week gave Barrick a one-week deadline to restart operations, four of the sources said. A new agreement with Mali would give a bump to Barrick's operations at a time when the gold prices have been hitting an all-time high but investors have not seen a similar return reflected on the company's share performance. In an interview with Reuters earlier this month Mark Bristow, CEO Barrick said that both the company and Mali were losing on the closure of the mine, with Mali losing out on its share of the revenue with every week the mine remained shut. He said that Barrick paid $460 million to the Mali government last year and would have contributed about $550 million to the nation's treasury this year if operations had not been suspended. Barrick lowered its gold output forecast this year to between 3.2 million ounces and 3.5 million ounces due to the temporary halt at the Mali mine. Barrick's gold output was 3.9 million ounces last year and 4.1 million ounces in 2023. Military governments in Mali, Niger and Burkina Faso are using legal disputes, arrests, and nationalisations, as well as threats to deepen their ties with Russia, to assert greater control over their gold and uranium wealth. After seizing power in 2020, Mali's junta pledged to scrutinise its mining sector so the state would benefit more from gold prices running at all-time highs. Some Western miners, like Canada's B2Gold, reached an agreement swiftly , opens new tab. Others, like Australia's Resolute, whose CEO was detained while in Mali for talks, took longer. Barrick has also launched arbitration against Mali, and it is unclear whether, in light of the new agreement, the company will drop its case. For 2024, Mali contributed $1.07 billion in revenues for Barrick, a 1% increase from the previous year. Mali's industrial gold production plunged 23% year-over-year in 2024. Sign up here. https://www.reuters.com/markets/commodities/barrick-gold-signs-agreement-with-mali-end-mining-dispute-2025-02-19/

2025-02-19 20:23

Over 600 projects fast-tracked under Trump's National Energy Emergency Environmental groups warn fast-tracking flouts federal laws Companies support expedited review for critical infrastructure projects WASHINGTON, Feb 19 (Reuters) - The Army Corps of Engineers has identified over 600 energy and other infrastructure projects that could be fast-tracked under President Donald Trump's National Energy Emergency declaration, according to data posted on its website. Among the projects on the list were Enbridge's Line 5 oil pipeline under Lake Michigan, several natural gas power plants, and liquefied natural gas export terminals proposed by Cheniere (LNG.N) , opens new tab and Venture Global (VG.N) , opens new tab. The Army Corps posted the list, without sending a public notice, last week, marking the projects as eligible for emergency permitting treatment. Trump had ordered the Army Corps to issue permits enabling the filling of wetlands and dredging or building in waterways as part of the "National Energy Emergency , opens new tab" he declared in a day-one executive order. The Army Corps was not immediately available for comment. The fast-tracking of these projects could trigger legal fights over many of the permits that will be issued, with environmental groups warning they are flouting federal laws. “This end-run around the normal environmental review process is not only harmful for our waters, but is illegal under the Corps’ own emergency permitting regulations,” said David Bookbinder, Director of Law and Policy at The Environmental Integrity Project. Courts may be unwilling to weigh in on the president's criteria for what constitutes a national energy emergency but will more likely weigh how individual projects adhere to the language of the executive order, he said. Companies with projects awaiting key permits applauded the move to "streamline" the review process. "Line 5 is critical energy infrastructure," said Enbridge spokesperson Gina Sutherland, saying the company has been awaiting a permit for building a Great Lakes Tunnel under Lake Michigan for nearly five years. "We are very encouraged to see this action to expedite review for responsible critical mineral development projects," said Jon Cherry, CEO of Perpetua Resources (PPTA.O) , opens new tab, which is developing a U.S. antimony and gold mine in Idaho with financial support from the Pentagon and U.S. Export-Import Bank. The Biden administration had issued the mine a permit, but it still needs a wetlands permit, which Cherry said he expects to receive by July. ENERGY EMERGENCY? The Army Corps has in the past issued emergency designations to skip over environmental reviews in cases in which the project addressed threats to human life. Environmental and watchdog groups say that most of the projects marked as emergencies on the list do not meet the Army Corps' definition of an emergency and also question the Trump administration's justification for declaring a national energy emergency. "It is laughable to see Line 5 on this list," said Debbie Chizewer, Managing Attorney of Earthjustice's Midwest Office, who represents the Bay Mills Indian Community in opposition of the project. "It's a pipeline that carries crude oil from Canada to Canada and will not increase US capacity or respond to Trump's declared energy emergency." Other projects do not relate to energy production, including a home-building project built on land owned by oil giant Chevron (CVX.N) , opens new tab in California, as well as an aerial electrical distribution line to private waterfront residences in Alabama. There are also at least five dozen solar energy projects on the list. Solar and wind energy were excluded from the definition of energy in Trump's energy emergency order. West Virginia has the largest number of projects on the list at 141. There are 60 in Pennsylvania, 57 in Texas, 42 in Florida, 41 in Ohio, according to the Environmental Integrity Project, which is tracking the permits. Officials at Venture Global and Cheniere were not immediately available to comment. Sign up here. https://www.reuters.com/world/us/us-army-corps-lists-600-emergency-projects-bypass-environmental-review-2025-02-19/

2025-02-19 19:52

SAN NICOLAS DE BARI, Feb 19 (Reuters) - For Maria Elena Veiga, a 60-year-old Cuban housewife living on the outskirts of Havana, charcoal has become the go-to fuel for cooking due to frequent blackouts from the island's failing power grid. "We have opted to cook with charcoal, which is what we can do, because otherwise we are going to go through a lot of work to be able to eat," said Veiga, who lives in San Nicolas de Bari, about 60 km (37 miles) northwest of the capital. Power outages have become a daily reality for many Cubans, with some areas going without electricity for more than 20 hours a day, mainly in towns far from the capital. "The day is lousy," Veiga said. "There's no power, and gas is scarce." A shortage of fuel and the country's aging thermoelectric plants have left Cuba's power supply vulnerable. Most of the oil-fired plants are inactive, and fuel shortages make it difficult for diesel generators to support the national grid. At the end of last year, several network collapses left the country of some 10 million inhabitants entirely in the dark. "The electricity is very bad. Sometimes we spend the whole day sometimes without getting power," said Mirella Martinez, 72, as she cooked and lightly stirred a pot of beans on top of a small charcoal stove. Many Cubans struggle with unreliable electricity and an inability to use household appliances. The crisis has prompted the government to implement drastic measures, including a two-day school closure and urging non-essential workers to stay home to reduce consumption. Cuba blames the U.S. trade embargo for its power grid issues, citing difficulties in acquiring fuel and spare parts for outdated plants. Sign up here. https://www.reuters.com/world/americas/cubans-turn-cooking-with-charcoal-energy-crisis-worsens-2025-02-19/