2025-02-06 12:50

MADRID, Feb 6 (Reuters) - A consortium comprising shareholders of Bilbao-based steelmaker Sidenor, together with the Basque country's regional government and Spanish bank Kutxabank, on Thursday made an offer for a 29.8% stake in Spanish train maker Talgo (TLGO.MC) , opens new tab. The consortium is offering to buy the stake from investment fund Trilantic, at 4.80 euros ($4.97) per share if Talgo meets certain financial targets in 2026 and 2027, the train manufacturer said in a filing to stock market regulator CNMV on Thursday. The price offered by the consortium implies a maximum valuation of nearly 595 million euros for the entire company. CNMV said it would allow Talgo shares to resume trading on Thursday afternoon after it halted their trade at opening after news reports about a potential offer led by Sidenor, which had already disclosed an interest in Talgo in October. The Spanish government in August blocked a 5 euro per share offer made by Hungarian consortium Ganz-Mavag for Talgo, as it considered it entailed risks to national security, public order and public health, though it did not elaborate. Local media linked the government's veto to concerns over Hungarian Prime Minister Viktor Orban's close ties to Russia. ($1 = 0.9654 euros) Sign up here. https://www.reuters.com/business/sidenor-shareholders-basque-government-make-offer-298-stake-train-maker-talgo-2025-02-06/

2025-02-06 12:49

By David Milliken and Andy Bruce LONDON, Feb 6 (Reuters) - The Bank of England lowered interest rates by a quarter of a percentage point on Thursday, judging a sharp upward revision to its inflation forecasts for this year will prove temporary, while two officials called for a bigger rate cut against a backdrop of weaker growth. The cut to 4.5% was in line with economists' expectations in a Reuters poll, but the two dissenting votes from external members Catherine Mann and Swati Dhingra in favour of a bigger rate cut to 4.25% were not. Mann until now had generally opposed rate cuts, though she had previously said that a switch to more active policy loosening would be needed at some point. Bank of England Governor Andrew Bailey said the BoE would be "monitoring the UK economy and global developments very closely and taking a gradual and careful approach to reducing rates further" - a shift from December's language where he spoke only of a "gradual" approach. Hit by worries about finance minister Rachel Reeves' tax increases for employers, the risk of a global trade war led by U.S. President Donald Trump and rising costs, the British economy has barely grown since mid-2024. The BoE warned that it likely contracted by 0.1% in the fourth quarter. Thursday's rate cut is only the third since the BoE started lowering borrowing costs from a 14-year high in August and leaves British rates among the highest for advanced economies and just above the U.S. Federal Reserve's range of 4.25-4.5%. Last month, economists polled by Reuters had forecast the BoE would make four quarter-point rate cuts this year, lowering its main interest rate to 3.75%, while more recently markets saw cuts to 4% as more likely. Minutes of February's decision showed some policymakers wanted a "cautious" approach to future rate cuts because of weak productivity that could push up inflation, while others saw less of a risk of persistent above-target inflation but said the BoE still needed to be "careful". The outlook for Britain's economy is worse than when the BoE published its last full set of forecasts in November. Inflation - already above target at 2.5% - is expected to peak at around 3.7% in the third quarter of this year due to higher energy prices and expected increases in regulated water bills and bus fares, up from a previous forecast peak of 2.8%. The BoE does not expect inflation to fall back to its 2% target until the final quarter of 2027, six months later than it had forecast before. The central bank also halved its forecast for growth this year to 0.75% - reflecting weak business and consumer sentiment and more sluggish productivity growth - although forecasts for annual growth in 2026 and 2027 were revised fractionally higher to 1.5% from 1.25%. The BoE said it was unclear exactly how any future U.S. tariffs would affect inflation in Britain, but said higher global tariffs were likely to cause slower growth, even if Britain was not specifically targeted. These forecasts were based on market expectations for a slower pace of rate cuts than in November, with interest rates dropping to around 4.25% by the end of this year versus about 3.75% expected before. The two policymakers who voted for an immediate cut in rates to 4.25% had different reasoning. The minutes did not say which view was linked to Mann or Dhingra, although one of the policymakers was described as supporting an "activist" approach, the language previously used by Mann. For the "activist" policymaker, voting for a bigger rate cut would give a clearer signal to markets, although she expected monetary policy would still need to stay restrictive for some time. For the other policymaker, weak growth was likely to ensure that inflation would return to target in the medium term. (([email protected] , opens new tab)) (([email protected] , opens new tab)) Keywords: BRITAIN BOE/ Sign up here. https://www.reuters.com/world/uk/bank-england-cuts-rates-sees-higher-inflation-weaker-growth-2025-02-06/

2025-02-06 12:44

BRUSSELS, Feb 6 (Reuters) - The European Commission may consider exempting 80% of companies due to be covered by its upcoming carbon border levy, the EU's head of climate policy said on Thursday. EU Climate Commissioner Wopke Hoekstra said the Commission's analysis had found that nearly all of the emissions covered by the carbon border tariff - 97% - are produced by just 20% of the companies covered by the scheme. "So would it then not be smart to leave that roughly 80% off the hook, in terms of the administrative work burden? In my view, it would," he told a European Parliament committee meeting. "Our current thinking, where you actually apply a huge burden on companies who would then fill out a lot of paperwork, have a lot of things to do, without any merit - that cannot be the solution," he added. The EU's carbon border levy will from 2026 start applying fees at the EU border on the CO2 emissions embedded in imported steel, cement and other products. Sign up here. https://www.reuters.com/sustainability/eu-considers-exempting-most-companies-carbon-border-levy-2025-02-06/

2025-02-06 12:33

Feb 6 (Reuters) - Xcel Energy (XEL.O) , opens new tab reported an increase in fourth-quarter profit on Thursday, as the utility firm benefited from higher electricity rates and lower operating expenses. The company reported a rise in earnings in Minnesota and Colorado regions, on higher recovery of electric and natural gas infrastructure investments. Regulated utilities use rate case proceedings to seek a rate increase based on their investments or expenses to provide services. The Minneapolis, Minnesota-based company also benefited from lower quarterly operating expenses, which were down 3.3% at $2.77 billion from a year earlier. The utility firm's net income was up 13.4% at $464 million for the quarter ended Dec. 31. Xcel Energy serves a total of 3.7 million electricity customers and 2.1 million natural gas customers across eight states of Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas and Wisconsin. Sign up here. https://www.reuters.com/business/energy/xcel-energy-posts-higher-quarterly-profit-increased-electricity-rates-2025-02-06/

2025-02-06 12:24

SAO PAULO, Feb 6 (Reuters) - Brazilian President Luiz Inacio Lula da Silva said on Thursday that he is "worried" about high food prices in the country, but projected price growth would slow going forward and voiced overall optimism about the economy. "The Brazilian economy is living its best moment," Lula told an interview with radio stations, citing stronger-than-expected growth and saying that inflation was "under control" despite exceeding the central bank's 1.5% to 4.5% target range. The leftist leader noted that Brazil's real was still at a low level against the U.S. dollar but sees the rate "adjusting," with the local currency up more than 6% so far this year after hitting all-time lows in December. Sign up here. https://www.reuters.com/world/americas/brazils-lula-voices-concern-about-food-prices-sees-inflation-under-control-2025-02-06/

2025-02-06 11:40

KAMPALA, Feb 6 (Reuters) - Uganda's central bank held its key lending rate for the second meeting in a row on Thursday, saying near-term inflation appeared well-contained but that the outlook was more uncertain than normal given external risks. The Central Bank Rate was kept at 9.75% (UGCBIR=ECI) , opens new tab. Annual core inflation, which the Bank of Uganda aims to keep at about 5%, rose to 4.2% in January, up from 3.9% the previous month. The bank forecasts core inflation of between 4% and 5% this year, though there are risks from geopolitics, extreme weather and a strong U.S. dollar, Bank of Uganda deputy governor Michael Atingi-Ego told a news conference. "Uncertainties from global developments could cause inflation to rise faster and disrupt economic activity. This situation necessitates a cautious approach to monetary policy," Atingi-Ego said. He said the bank's projections for economic growth remained unchanged from its December policy meeting, at between 6%-6.5% in the financial year to June 2025, and 7% for the following years, supported by a stable macro-economic environment and foreign direct investment (FDI) towards the extractive industries. Uganda expects to start pumping crude oil commercially this year, which has helped bolster FDI. Responding to questions from reporters about the impact of U.S. President Donald Trump's trade policies, Atingi-Ego said tariffs on countries like China were likely to spur price rises in African countries. "It will affect the global inflation, and Uganda of course is not in an island. We will end up importing some of that inflation," he said. "That means we will have to see how to tighten monetary policy going forward." Sign up here. https://www.reuters.com/markets/rates-bonds/uganda-holds-key-rate-says-near-term-inflation-looks-well-contained-2025-02-06/