2025-02-11 13:58

SAO PAULO, Feb 11 (Reuters) - Brazil's inflation rate slowed in January from the previous month, data showed on Tuesday, but the 12-month rate was still above the upper end of the central bank's target range, keeping expectations intact for another rate rise next month. In Latin America's largest economy, consumer prices as measured by the benchmark IPCA index rose 0.16% last month, government statistics agency IBGE said, slowing from a 0.52% increase in December and meeting forecasts in a Reuters poll of economists. That was the lowest level of price increases for January since Brazil's real currency was established in 1994, driven by a drop in housing costs as electricity prices fell sharply on the back of credits on household energy bills. Annual inflation stood at 4.56%, decelerating from the 4.83% registered in the previous month. Brazil's central bank targets inflation at 3%, plus or minus 1.5 percentage points, and has been tightening its monetary policy in order to return it to the official goal. Policymakers at the bank unanimously voted in January to raise the benchmark interest rate by 100 basis points for the second straight meeting to 13.25%, and signalled another hike of that size in March. The latest inflation figure "is unlikely to prevent the central bank from delivering another 100bp hike to the Selic rate," Kimberley Sperrfechter of Capital Economics said, noting that inflation expectations remain unanchored. "For now, we think that March's hike will mark the end of the tightening cycle, but the risks to our interest rate forecast lie firmly to the upside." Brazil's government and central bank expect annual inflation to remain above 4.5% at least until June, but Finance Minister Fernando Haddad has said that a bumper crop and recent gains in Brazil's currency should help put it under control soon. The government has been especially worried about high food prices, which affected President Luiz Inacio Lula da Silva's approval ratings. In January, food and beverage costs rose 0.96%, easing from the previous month's 1.18% increase. Inter's chief economist Rafaela Vitoria said that was good news but contrasted with still elevated services inflation, adding that the fresh data did not change expectations of a 100-basis-point rate hike next month. "But from May onwards, with the next steps still to be decided, it will be essential to monitor activity and labour market data," she noted. "A sharper slowdown would be welcome and may help reduce inflation." Sign up here. https://www.reuters.com/world/americas/brazils-inflation-slows-january-tightening-cycle-continue-2025-02-11/

2025-02-11 13:00

Feb 11 (Reuters) - Coca-Cola (KO.N) , opens new tab posted a surprise rise in comparable revenue and topped estimates for fourth-quarter profit on Tuesday, helped by higher prices and resilient demand for its sodas, sending the company's shares up about 4% premarket. The company has focused on capturing demand in emerging markets such as India and expanding its portfolio in North America to include brands such as the premium Fairlife milk label, as well as the sparkling water brand Topo Chico. Partnerships with value meal deals at fast-food chains such as McDonald's (MCD.N) , opens new tab have also buoyed sales. Quarterly volumes rose across Coca-Cola's global markets for the first time in 2024, with North America posting a 1% growth in the fourth quarter. At the same time, global prices rose 9% in last three months of 2024, following a 10% jump in the third quarter. Coca-Cola has benefited from robust demand for its sparkling soft drink brands such as Fanta and Sprite, with volumes rising 2% in the segment. It accounts for about two-thirds of the company's total volumes. In contrast, rival PepsiCo (PEP.O) , opens new tab last week reported a 3% drop in volume for its two biggest segments of North America beverages and Frito-Lay North America for the fourth quarter. "That's probably key difference versus Pepsi. Pepsi has been losing share in North America in sparkling beverages and Coca-Cola has been outperforming in no-sugar and sparkling in particular," said Charlie Higgs, director of Consumer Staples Research at Redburn Atlantic. Coca-Cola's fourth-quarter comparable net revenue rose 4.2% to $11.40 billion, while analysts had expected it to drop 2.47% to $10.68 billion, according to data by LSEG. The company's profit of 55 cents per share topped estimates of 52 cents. Coca-Cola expects organic revenue growth of 5% to 6% for 2025, compared with a 12% rise in 2024. The forecast is at the higher end of the company's long-term organic revenue growth target of between 4% and 6%. Sign up here. https://www.reuters.com/business/retail-consumer/coca-cola-forecasts-downbeat-2025-organic-revenue-growth-2025-02-11/

2025-02-11 12:34

Binance, SEC ask court for 60-day stay Move signals possible pivot in crypto enforcement New task force may impact case Feb 11 (Reuters) - Binance and the U.S. Securities and Exchange Commission have asked a federal judge to stay the regulator's lawsuit against the crypto exchange, according to a court filing, citing the potential impact of a newly launched task force. The motion to request a stay for 60 days marks the first clear effort to retreat from the SEC's previous crypto enforcement under Democratic leadership. In a joint motion filed late Monday, the parties said the SEC's task force, formed last month to work on crypto regulations, may "impact and facilitate the potential resolution of this case". The stay was seen by some as an early sign of the SEC's pivot to a more crypto-friendly stance, reflecting President Donald Trump's pledge to make the U.S. a global hub for the industry. Reuters previously reported the SEC, under Republican leadership, was expected to begin a review of existing court cases like those against Binance, where the regulator has argued the firms are listing crypto tokens that behave like securities. A spokesperson for the agency declined to comment beyond the court filing. At a Federalist Society event on Tuesday, Republican Commissioner Hester Peirce said: "We've been approaching it backwards, using our enforcement division to set policy." The SEC regulator in June 2023 sued Binance, its U.S. unit and founder Changpeng Zhao, accusing them of artificially inflating trading volumes, diverting customer funds and misleading investors about its market surveillance controls. "The SEC's case has always been without merit and we are eager to put this behind us and to continue our focus on keeping Binance the most secure, licensed and trusted exchange in the world," a spokesperson for Binance said, while thanking acting SEC Chair Mark Uyeda. Former SEC official Corey Frayer criticized the stay. "Delaying a case where the CEO pled guilty to criminal charges and the SEC has an employee dead to rights admitting violation of the securities laws clarifies the SEC's shifts on crypto may culminate in a full dereliction of duty," he told Reuters. Separately, Binance in November 2023 admitted to violating a law designed to prevent money laundering, and Zhao served time in prison for a related charge. But the U.S. government has made a sharp turnaround on crypto since Trump took office. The president has tapped crypto-friendly Washington lawyer Paul Atkins as the new chair of the SEC. Atkins has yet to be confirmed by Congress, but the SEC has already started shifting priorities under its existing Republican leadership, reassigning some of its crypto enforcement lawyers to other areas and tightening oversight of investigations. The SEC's prior chair Gary Gensler had asked Congress to help the agency rein in the crypto "Wild West". SEC's Peirce, on Tuesday, noted the comparison to the Wild West has "positive sides" and that regulators need to regulate the industry and protect investors in a way that "recognizes the greatness of that American spirit that moved west." Sign up here. https://www.reuters.com/markets/currencies/binance-sec-request-pause-legal-battle-trumps-crypto-policy-takes-shape-2025-02-11/

2025-02-11 12:30

NEW DELHI, Feb 11 (Reuters) - Oil India Ltd (OILI.NS) , opens new tab has signed an agreement with Petrobras (PETR4.SA) , opens new tab to jointly bid for oil and gas exploration blocks in India, its chairman Ranjit Rath told Reuters on Tuesday. Petrobras chief executive Magda Chambriard said the company was looking at exploration opportunities as well as to trade in petroleum products with India. Sign up here. https://www.reuters.com/markets/commodities/oil-india-signs-pact-with-petrobras-bid-oil-gas-assets-chairman-says-2025-02-11/

2025-02-11 12:21

Businesses warn tariffs would be felt across supply chain New tariffs scheduled to take effect on March 12 EU plans countermeasures, may reactivate 2018 tariffs Mexico does not forecast retaliatory measures Canada to defend against tariffs, highlights negative impact on trade WASHINGTON/BRUSSELS, Feb 11 (Reuters) - U.S. President Donald Trump's planned 25% tariffs on steel and aluminum imports would pile on top of other levies on Canadian goods, resulting in a total 50% tariff if threatened duties on all imports from Canada are enacted in March, a White House official said on Tuesday. Canada has not been told about the additive nature of the tariffs, a Canadian government source told Reuters, adding that it "sounds plausible." Mexico, Canada and the European Union condemned Trump's metals tariffs on Tuesday and governments around the world braced for even more levies from the new administration amid fears of an escalating global trade war. Businesses around the United States also warned of fallout, with many manufacturing-heavy companies finding it difficult to plan next steps or determine if Trump will follow through. The tariff hike would reverberate across the supply chain, affecting all businesses that rely on the materials, they said. Trump signed proclamations late on Monday raising the U.S. tariff rate on aluminum to 25% from his previous 10% rate and eliminating country exceptions and quota deals as well as hundreds of thousands of product-specific tariff exclusions for both metals. The measures, due to take effect on March 12, will apply to millions of tons of steel and aluminum imports from Canada, Brazil, Mexico, South Korea and other countries that had been entering the U.S. duty free under the carve-outs. Mexican Economy Minister Marcelo Ebrard called the tariff decision "not justified" and "unfair." He did not say if Mexico planned reciprocal tariffs on steel or aluminum it imports from the United States. Canadian Prime Minister Justin Trudeau said the tariffs were "unacceptable." Canada's response, if needed, would be firm and clear, he said at an artificial intelligence summit in Paris. The Canadian Press, citing a senior government official, said Trudeau spoke with U.S. Vice President JD Vance about the impact the steel tariffs would have in Ohio, which Vance previously represented in the U.S. Senate. Vance was also planning to discuss trade and economic issues with European Commission President Ursula von der Leyen at the Paris summit after she said the 27-nation bloc would take "firm and proportionate countermeasures" to the new tariffs. READY TO RETALIATE Von der Leyen said she deeply regretted the U.S. decision, adding that tariffs were taxes that were bad for business and worse for consumers. EU steel exports to the U.S. have averaged about 3 billion euros ($3.1 billion) a year over the past decade. "Unjustified tariffs on the EU will not go unanswered - they will trigger firm and proportionate countermeasures," she said in a statement. One option for the EU would be to reactivate the tariffs it imposed in 2018 during Trump's first term, which were suspended under an agreement with his predecessor, President Joe Biden. The EU tariffs on U.S. products such as bourbon, motorcycles and orange juice are currently suspended until the end of March. The American Chamber of Commerce to the EU (AmCham EU), representing U.S. companies active in Europe, also criticised the move as harmful to jobs, prosperity and security on both sides of the Atlantic. "The damage will extend beyond just the steel and aluminum sectors, impacting all businesses that rely on these materials throughout the supply chain," it said in a statement. COST AND CHAOS Executives across industries reliant on steel and aluminum imports were scrambling to offset the cost of Trump's move after previous tariff threats from the White House that were later scrapped. Companies ranging from Coca-Cola and Ford to smaller aluminum, aerospace and appliance firms expect to be affected by Trump's moves, which Ford CEO Jim Farley said have so far added "a lot of cost and a lot of chaos" to American business. The Coalition of American Metal Manufacturers and Users (CAMMU) said failure to include a workable exclusion process would hurt U.S. manufacturers, and especially small- and medium-sized businesses that were left paying significantly more for inputs to their production. "Foreign customers are shifting their supply chains away from U.S. producers. Once removed, especially for smaller, family-owned businesses, it is difficult to regain that lost business," the group said. It said the threat of retaliatory tariffs from key trading partners further threatened U.S. exports and manufacturing jobs, stalling expansion plans and teeing up difficult choices on investments, retention and long-term growth. Steel imports accounted for about 23% of American steel consumption in 2023, according to American Iron and Steel Institute data, with Canada, Brazil and Mexico the largest suppliers. Canada accounted for nearly 80% of U.S. primary aluminum imports in 2024. Trump also will impose a new North American standard requiring steel imports to be "melted and poured" and aluminum to be "smelted and cast" within the region to curb U.S. imports of minimally processed Chinese and Russian metals that circumvent other tariffs. While China exports only tiny volumes of steel to the U.S., it is responsible for much of the world's excess steel capacity, according to the U.S. It says subsidised production in China forces other countries to export more and leads to trans-shipment of Chinese steel through other countries into the U.S. to avoid tariffs and other trade restrictions. ($1 = 0.9684 euros) Sign up here. https://www.reuters.com/markets/eu-readies-response-trump-hikes-steel-aluminium-tariffs-2025-02-11/

2025-02-11 12:20

Von der Leyen vows firm countermeasures against U.S. tariffs EU considers reactivating 2018 tariffs suspended under Biden Trade chief Sefcovic says tariffs a 'lose, lose' BRUSSELS, Feb 11 (Reuters) - European Commission President Ursula von der Leyen on Tuesday vowed "firm and proportionate countermeasures" in response to U.S. President Donald Trump's decision to impose tariffs on all steel and aluminium imports, escalating fears of a trade war. Trump signed proclamations late on Monday to raise tariffs on all steel and aluminium imports to 25% without exceptions or exemptions. A White House official said that the measures would take effect on March 4. Von der Leyen said in a statement that she deeply regretted the U.S. decision, adding tariffs were taxes that were bad for business and worse for consumers. EU steel exports to the U.S. have averaged about 3 billion euros ($3.10 billion) a year over the past decade. "Unjustified tariffs on the EU will not go unanswered - they will trigger firm and proportionate countermeasures. The EU will act to safeguard its interests," she said. Von der Leyen did not provide details of the response. One option would be to reactivate the tariffs the EU imposed in 2018 that were suspended under a truce agreed between von der Leyen and former U.S. President Joe Biden. The EU tariffs on U.S. products such as bourbon, motorcycles and orange juice are currently suspended until the end of March. EU trade chief Maros Sefcovic described the U.S. decision in a speech in the European Parliament as a "lose-lose scenario". He added that the Commission was now assessing the scope of the U.S. measures and the appropriate EU response. Trump's latest trade salvo pushed gold prices to a record high on Tuesday on safe-haven demand, with the precious metal hitting $2,942.70 in early trading. The Commission is set to hear the views of its 27 EU members on the bloc's response at a video conference of European Union trade ministers convened for Wednesday. The steel and aluminium tariffs imposed by Trump in 2018 were suspended under his successor Joe Biden. However, they were replaced with quotas. EU steel producers have seen export volumes to the United States drop by about 1 million tons to 2.2 million in 2019-2024. A major industry concern is that the 15 million tons the United States imported last year from countries other than the EU will be redirected towards the bloc if tariffs are imposed. ($1 = 0.9692 euros) Sign up here. https://www.reuters.com/world/europe/eu-convenes-trade-ministers-after-trump-tariffs-say-diplomats-2025-02-11/