2025-02-05 19:10
SAO PAULO, Feb 5 (Reuters) - The Brazilian coffee industry is worried that sky-high coffee prices are leading some companies to expand offerings of what it calls fake coffee in the local market, as they seek to attract consumers who are feeling the pinch. Brazil's coffee roasters association, ABIC, recently identified in groceries powdered products marketed as coffee, but that are mostly not made with the bean. "It is a clear attempt to fool consumers," said Celirio Inacio da Silva, ABIC's executive director, adding that those powders could contain coffee waste such as peels or leaves, other vegetable pulp and artificial coffee flavoring. Coffee prices in Brazil - the world's largest producer of the beans and the second-largest drinker of the beverage after the United States - have risen more than 50% in the last three months. Global prices hit all-time highs due to limited supplies following weather woes in producing countries. ABIC said it has reached out to Brazilian health agencies and the Agriculture Ministry asking if such products are being sold legally. One such product is called Oficial do Brasil, it said. Its package is similar to roast and ground brands sold locally, displaying a picture of a hot cup of coffee. The description on the package reads, "traditional coffee flavor beverage." In smaller letters lower down, it says "artificial coffee flavor." "We never said it was coffee," said Master Blends, the company that produces Oficial do Brasil, in a statement. "We created a product to meet the demand of a class of consumers that is suffering from high prices," the company said, adding that the product is government-approved. Anvisa, the Brazilian food and drug regulator, did not immediately respond to a request for comment regarding the product's approval status. Such products currently sell in Brazil for around one-third of the price of regular coffee. Sign up here. https://www.reuters.com/markets/commodities/brazil-roasters-fret-over-fake-coffee-prices-soar-2025-02-05/
2025-02-05 19:07
Feb 5 (Reuters) - United Steelworkers President David McCall filed a motion to dismiss U.S. Steel (X.N) , opens new tab and Nippon Steel's (5401.T) , opens new tab lawsuit against him, the union said on Wednesday. The two steelmakers filed the lawsuit in January after then U.S. President Joe Biden blocked a $14.9 billion bid for the 123-year-old American steelmaker by the Japanese firm. It named McCall, rival bidder Cleveland-Cliffs (CLF.N) , opens new tab and its CEO Lourenco Goncalves, citing "their illegal and coordinated actions" aimed at preventing the deal to allow Cliffs to monopolize key steel markets. “U.S. Steel and Nippon launched a frivolous and unsubstantiated attack on our union simply for exercising our First Amendment rights,” the union said in a statement, arguing that it was both the union's "right" and "responsibility" to speak out against mergers that hurt union members and national security. Nippon Steel declined to comment. U.S. Steel said in a statement that it would respond to the motion to dismiss shortly and would continue to pursue its claim. "There are no valid legal defenses to that illegal conduct," it added. Biden blocked the deal on national security grounds but delayed enforcement pending a separate suit from the companies. The proposed tie-up had become highly politicized ahead of November's U.S. presidential election, with both Biden and Donald Trump vowing to terminate it. The USW opposed the deal on grounds of lack of transparency and job security risks, despite Nippon's multiple attempts at assuaging its concerns. The union has, however, shown its support for Cliffs, which was reported to be partnering with peer Nucor (NUE.N) , opens new tab to prepare a potential all-cash bid for U.S. Steel last month. Cleveland-Cliffs also filed a motion on Tuesday to dismiss the lawsuit against the company and Goncalves. McCall filed the motion in the Western District of Pennsylvania. Sign up here. https://www.reuters.com/markets/commodities/usw-union-chief-files-motion-dismiss-lawsuit-by-us-steel-nippon-steel-2025-02-05/
2025-02-05 19:01
GENEVA, Feb 5 (Reuters) - China has formally launched a dispute at the World Trade Organization (WTO) over tariffs imposed by U.S. President Donald Trump on Chinese goods, the Geneva-based body said on Wednesday. Trump on Saturday ordered tariffs on goods from Mexico, Canada and China, demanding they staunch the flow of fentanyl - and, in the case of Canada and Mexico illegal immigration. He later froze tariffs against the two North American countries but went ahead with those on China. China, which Trump subjected to a tariff of 10% on goods exports, had vowed to challenge the step at the WTO. In a statement cited by the WTO, China said the measures appeared to be inconsistent with U.S. obligations under the agreement that led to the creation of the trade body, pointing to the discriminatory nature of the tariffs. "China reserves the right to raise additional measures and claims regarding the matters identified herein during the course of consultations and in any future request for the establishment of a panel," the Chinese statement said. It did not detail what measures those could be. Since December 2019, the WTO's dispute settlement system has been effectively paralyzed following the collapse of its Appellate Body which has the final say on disputes. Trump's first administration and that of Joe Biden blocked the appointment of new judges to the Appellate Body over what they saw as judicial overreach in disputes. The body is unable to function with less than three judges. Sign up here. https://www.reuters.com/world/china/china-launches-wto-dispute-over-trump-tariffs-2025-02-05/
2025-02-05 18:37
Feb 5 (Reuters) - Strategy (MSTR.O) , opens new tab, the biggest corporate holder of bitcoin , reported a fourth consecutive quarterly loss on Wednesday as the company booked an impairment charge on its stockpile of the cryptocurrency. The Tysons Corner, Virginia-based company booked impairment losses from digital assets of $1.01 billion in the quarter, compared with $39.2 million a year ago. Strategy, formerly known as MicroStrategy and founded by Michael Saylor, has emerged as one of the biggest beneficiaries of the soaring popularity of bitcoin. Its shares jumped nearly five-fold last year, helping it secure a spot in the Nasdaq 100 index in December. The company began buying bitcoin in 2020 as revenue from its software business waned. Last year, Strategy unveiled plans to raise $42 billion over the next three years to buy more bitcoins. Strategy has completed $20 billion of the capital plan and held about 471,107 bitcoins with a market value of $46 billion as of Feb. 2. The company bought 218,887 bitcoins for $20.5 billion in the quarter, marking Strategy's largest ever increase in quarterly bitcoins holdings. Strategy is shifting its focus more to fixed-income issuance this year, including convertible bonds and preferred stock, CEO Phong Le said on a post-earnings call. The company's net loss was $670.8 million, or $3.03 per share, in the three months ended Dec. 31, compared with a profit of $89.1 million, or 50 cents per share, a year earlier. Strategy will also move to a new accounting rule in the first quarter, allowing it to measure the fair value of its bitcoin holdings. Chief Financial Officer Andrew Kang said the fourth quarter will be the last when it recognizes an impairment charge on its bitcoin holdings. NEW NAME The company earlier in the day said it would now operate as "Strategy" and unveiled a new logo to emphasize its commitment to the cryptocurrency space. The rebranding was "a natural evolution" as it seeks to integrate bitcoin — the world's biggest and best-known cryptocurrency — into the heart of its business operations, the company said. Bernstein analyst Gautam Chhugani said the company probably wanted to emphasize bitcoin as its core business and to distance away from the software arm, which is no longer material. The company continues to be an aggressive investor in bitcoin , opens new tab. In the statement on Wednesday announcing its rebranding, MicroStrategy defined itself as the world's "first and largest Bitcoin Treasury Company". Its new logo includes a stylized "B" that signifies its bitcoin strategy, it said. Sign up here. https://www.reuters.com/technology/microstrategy-deepens-bitcoin-focus-with-rebrand-2025-02-05/
2025-02-05 18:25
LONDON, Feb 5 (Reuters) - BlackRock (BLK.N) , opens new tab is gearing up to launch a bitcoin exchange-traded product in Europe within weeks, a source familiar with the matter told Reuters, amid growing demand for exposure to cryptocurrencies from both money managers and consumers. The product will likely be domiciled in Switzerland, the source added. The Wall Street giant has incorporated a Zurich-based company focused on digital assets - iShares Digital Assets AG - in recent months, according to a regulatory filing seen by Reuters. BlackRock declined to comment. BlackRock was one of the first institutional investors to offer exchange-traded products to track the spot price of bitcoin after the U.S. Securities and Exchange Commission first approved them in January 2024. The SEC's move was a watershed moment for the asset class, boosting hopes in the crypto industry that cryptocurrencies would become more widely integrated in mainstream finance. BlackRock's main bitcoin-linked product IBIT has grown rapidly, amassing net assets of $57.5 billion as of Feb. 4, according to BlackRock's website. However, not all global investors can access the existing U.S.-domiciled products. Bloomberg was first to report on BlackRock's plans in Europe. While the U.S. crypto industry has celebrated Trump's election and his pledge to support the sector, crypto businesses in Europe are facing new, tougher regulation. The European Union's landmark crypto regulatory framework, known as the Markets in Crypto-Assets Regulation (MiCA) was introduced in early 2023 and is in the process of being rolled out. Sign up here. https://www.reuters.com/technology/blackrock-prepares-launch-bitcoin-exchange-traded-product-europe-source-says-2025-02-05/
2025-02-05 18:04
MEXICO CITY, Feb 5 (Reuters) - Mexico's central bank will likely cut its benchmark interest rate by 50 basis points later this week, taking it to 9.50%, a Reuters poll showed on Wednesday, as inflation cools and the economy notched a slight contraction late last year. According to the poll, 14 of 17 economists surveyed expect the central bank to deliver the 50-basis-point cut, which would follow five 25-basis-point cuts last year. The other three economists forecast a 25-basis-point cut this week. The central bank's policymaking board lowered the benchmark rate (MXCBIR=ECI) , opens new tab to 10.00% in a unanimous vote in December. Annual inflation in Latin America's second-biggest economy slowed to its lowest level in almost four years in the first half of January, a price level that is seen as encouraging Mexican central bankers to keep cutting rates. The 12-month headline inflation reading came in at 3.69% during the first two weeks of January, its lowest level since early 2021 and falling within the bank's target of 3%, plus or minus one percentage point. In 2022, the rate of rising consumer prices hit a two-decade high at above 8%. The prospect of a rate cut this week also was boosted by data showing Mexico's economy contracted by 0.6% in the fourth quarter, marking its first quarter-on-quarter contraction in more than three years. If the central bank announces a 50-basis-point cut, the interest rate would be at its lowest level since September 2022 and narrow the gap between borrowing costs in Mexico and the U.S. Last week, the U.S. Federal Reserve held its benchmark interest rate steady in the 4.25%-4.50% range and indicated it was in no rush to cut again until U.S. inflation and jobs data warranted it. The Bank of Mexico, known locally as Banxico, is set to publish its interest rate decision at 1 p.m. local time (1900 GMT) on Thursday in its first monetary policy decision of the year. Sign up here. https://www.reuters.com/markets/mexicos-central-bank-will-likely-bring-interest-rate-down-95-2025-02-05/
