2025-01-31 12:39
BRASILIA, Jan 31 (Reuters) - Brazil's gross debt rose less than expected in 2024, supported by the central bank's sale of foreign reserves in December, a month marked by intense exchange rate volatility amid fiscal concerns, official data showed on Friday. A key indicator of fiscal solvency, the gross debt-to-GDP ratio decreased to 76.1% in December from 77.7% in November, while economists polled by Reuters had anticipated it would close the year at 77.0% of gross domestic product. As a result, the annual debt increase amounted to 2.2 percentage points, according to the central bank, driven primarily by heavy interest payments. In December, the central bank carried out massive foreign exchange interventions, including spot dollar sales and dollar repurchase agreements totaling over $30 billion, amid a sharp weakening of the Brazilian real. However, about a third of the gross debt reduction from these operations is expected to reverse when the central bank eventually buys back the dollars it sold in auctions with repurchase agreements, said the deputy head of the bank's statistics department, Renato Baldini. Brazil's currency fell as low as 6.30 per U.S. dollar during December, a month typically marked by outflows from company profit remittances but further weighed down by investor concerns after the government's late-November spending cut package disappointed markets. On Friday, the country's currency was trading around 5.81 reais per dollar. The central bank data also showed that the public sector posted a primary surplus of 15.745 billion reais ($2.71 billion) in December, exceeding the 10.2 billion reais surplus expected in a Reuters poll. The central government's primary surplus reached 26.728 billion reais in December, bringing the annual deficit to 45.364 billion reais, or 0.38% of GDP, marking a significant improvement from the 2023 deficit of 2.42% of GDP. The Treasury said on Thursday that the annual result met the fiscal target of a zero primary deficit, with a tolerance margin of 0.25% above or below, as the exclusion of certain expenses for compliance purposes - such as costs related to unprecedented flooding in the state of Rio Grande do Sul - left the 2024 shortfall at 0.09% of GDP. ($1 = 5.8167 reais) Sign up here. https://www.reuters.com/world/americas/brazils-gross-debt-rises-less-than-expected-2024-aided-by-foreign-reserves-sale-2025-01-31/
2025-01-31 12:27
Trump: Tariffs are coming and nothing can forestall them Canada and Mexico face 25% levies, China looking at 10% above current tariffs Oil from Canada will be taxed at 10%, more oil and gas tariffs expected in mid-February WASHINGTON, Jan 31 (Reuters) - U.S. President Donald Trump said on Friday he would impose hefty new tariffs of 25% on goods from Mexico and Canada and 10% on imports from China, and nothing could be done by the three countries to forestall them. Trump did, however, reference a potential carve out for oil from Canada, saying that rate would be 10% versus the 25% planned for other goods from the United States' northern neighbor. But he indicated wider tariffs on oil and natural gas would be coming in mid-February, remarks that sent oil prices higher. Trump has been threatening the tariffs for weeks, saying they would be imposed on Feb. 1 and remain in place until the countries did more to stem the flow of both migrants and fentanyl over the U.S. border. Speaking to reporters in the Oval Office as he was signing executive orders, Trump said he understood the duties could result in higher costs being passed on to consumers and acknowledged his actions may cause disruptions in the short term. Most economists estimate such sweeping import taxes, and the likely retaliation, would disrupt economic activity around the globe. Asked if there was any opportunity at this stage for the three top U.S. trading partners to win a delay, Trump said: "No, no. Not right now, no." He brushed away the notion his threats for levies have been a bargaining tool. "No, it's not ... we have big (trade) deficits with, as you know, with all three of them." "It's something we're doing, and we'll possibly very substantially increase it, or not, we'll see how it is," Trump said. "But it's a lot of money coming to the United States." And more tariffs are on the way, the Republican president said, saying import taxes were being considered on European goods as well as on steel, aluminum and copper, and on drugs and semiconductors. "We're going to be putting tariffs on steel and aluminum, and ultimately copper. Copper will take a little longer," he said. Financial markets have been whipsawed by the rapid-fire but still not fully clear developments on Trump's tariff plans, with currency trading showing particular volatility. The Canadian dollar and Mexican peso both weakened while Treasury bond yields rose, and stocks ended the day lower. Still, he said he was not concerned about the reaction of financial markets to his plans to impose tariffs. "The President will be implementing tomorrow 25% tariffs on Mexico, 25% tariffs on Canada, and a 10% tariff on China for the illegal fentanyl that they have sourced and allowed to distribute into our country, which has killed tens of millions of Americans," White House spokesperson Karoline Leavitt told a press briefing. Leavitt said details of the tariffs will be released sometime on Saturday. When Trump imposed punitive duties on Chinese goods in 2018 and 2019, there was typically a lag of two to three weeks for Customs and Border Protection to begin collecting tariffs, due to computer system updates and notices required for importers. Trump traveled late on Friday to his Mar-a-Lago estate in Florida, saying he would work all weekend there. He was joined on the flight by his commerce secretary nominee Howard Lutnick, who Trump has designated as his trade policy chief. MAJOR DISRUPTION Economists and business executives have warned the tariffs would spark increases in the prices of imports such as aluminum and lumber from Canada, as well as fruits, vegetables, beer and electronics from Mexico and motor vehicles from both countries. Trump again spoke of collecting hundreds of billions of dollars in revenues from other countries, but economists generally say tariffs are paid by firms that import goods and pass the costs on to consumers or accept lower profits. "President Trump's tariffs will tax America first," said Matthew Holmes, public policy chief at the Canadian Chamber of Commerce. "From higher costs at the pumps, grocery stores and online checkout, tariffs cascade through the economy and end up hurting consumers and businesses on both sides of the border." Trump's move is expected to draw retaliatory tariffs, potentially disrupting more than $2.1 trillion in annual two-way U.S. trade with the three trading partners. Canadian Prime Minister Justin Trudeau on Friday said Canada would immediately respond with forceful countermeasures, adding Canadians could be "facing difficult times in the coming days and weeks." Canada has drawn up detailed targets for immediate tariff retaliation, including duties on Florida orange juice, a source familiar with the plan said. Canada has a broader list of targets that could reach C$150 billion ($105 billion) worth of U.S. imports, but would hold public consultations before acting, the source said. Mexican President Claudia Sheinbaum said she would "wait with a cool head" for Trump's tariff decision and was prepared to continue a border dialogue. Sheinbaum previously said Mexico also would retaliate, arguing Trump's tariffs would cost 400,000 U.S. jobs and drive up prices for U.S. consumers. China has been more circumspect about its retaliation plans, but has vowed to respond. China "firmly opposes" Trump's new duties, a spokesperson for Beijing's embassy in Washington said, adding: "There is no winner in a trade war or tariff war, which serves the interests of neither side nor the world." Sign up here. https://www.reuters.com/world/americas/north-america-braces-new-trump-tariffs-saturday-deadline-nears-2025-01-31/
2025-01-31 12:18
Jan 31 (Reuters) - Refiner Phillips 66 (PSX.N) , opens new tab reported a smaller-than-expected loss on Friday as strength in its renewables segment offset a sharp decline in refining margins. The renewables fuels segment reported a quarterly profit of $28 million, compared to a loss of $11 million from a year earlier. The U.S. refining industry saw exceptional profits for two years following supply shortages from Russia's invasion of Ukraine, while a post-pandemic demand surge drove up margins. However, new refining capacity came online at the end of 2023, causing margins to return to normal levels and putting pressure on refiner profits. Quarterly U.S. refinery margins, measured by the 3-2-1 crack spread , have been down on an average from a year earlier, touching as low as $15.04 in mid-December. The company's realized margin was down at $6.08 per barrel in the quarter, compared with $13.88 per barrel from a year earlier. On an adjusted basis, the company reported a loss of 15 cents per share in the quarter, compared with the analysts average estimate of 23 cents loss per share, according to data compiled by LSEG. Sign up here. https://www.reuters.com/business/energy/phillips-66-reports-smaller-than-expected-fourth-quarter-loss-2025-01-31/
2025-01-31 12:13
SANTIAGO, Jan 31 (Reuters) - Copper output in Chile, the world's largest producer of the red metal, increased 14.3% year-on-year in December to 566,547 metric tons, the country's INE statistics agency said on Friday. Manufacturing production in the Andean nation was up 8.4% in the period from a year earlier, the agency added. Sign up here. https://www.reuters.com/markets/commodities/chiles-copper-output-jumps-december-2025-01-31/
2025-01-31 12:08
Jan 31 (Reuters) - India's markets regulator on Friday extended the suspension in trading of derivative contracts of some grains and food items until the end of March. The grains and edible items included in Friday's directive were paddy, wheat, chickpeas (chana), mustard seeds, soyabean, crude palm oil and moong. The Securities and Exchange Board of India had first initiated the suspension in December 2021. Sign up here. https://www.reuters.com/markets/commodities/india-market-regulator-extends-derivatives-trading-ban-some-grains-food-items-2025-01-31/
2025-01-31 11:48
MUMBAI, Jan 31 (Reuters) - India's foreign exchange reserves (INFXR=ECI) , opens new tab halted a seven-week losing streak and rose to $629.56 billion as of Jan. 24, coming off near 11-month lows, data from the central bank showed on Friday, as pressure on the rupee eased. The reserves rose by $5.58 billion in the reported week, the biggest increase in four months. They had fallen cumulatively by more than $34 billion in the prior seven weeks. Changes in foreign currency assets are caused by the central bank's intervention in the forex market as well as the appreciation or depreciation of foreign assets held in the reserves. The Reserve Bank of India (RBI) intervenes on both sides of the forex market to curb undue volatility in the rupee. The rupee had risen 0.5% and logged its biggest weekly rise in more than a year in the week to Jan. 24, helped by relief in Asian forex as U.S. President Donald Trump did not levy tariffs immediately upon taking office. The rupee and other emerging market currencies have been under pressure amid concerns that Trump's tariff plans and sanctions on countries could disrupt global trade. Outflows from India's equity and debt markets have also kept the rupee under pressure. The RBI, however, has intervened in the forex market to keep volatility in check. The rupee hit a low of 86.6525 on Friday, before ending the session little changed at 86.6050. It declined by 0.5% week-on-week. The forex reserves also include India's reserve tranche position in the International Monetary Fund. FOREIGN EXCHANGE RESERVES (in million U.S. dollars) --------------------------------------------------------- Jan 24 Jan 17 2025 2025 --------------------------------------------------------- Foreign currency assets 537,891 533,133 Gold 69,651 68,947 SDRs 17,861 17,782 Reserve Tranche Position 4,154 4,122 ---------------------------------------------------------- Total 629,557 623,983 ---------------------------------------------------------- Source text: (https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx , opens new tab) Sign up here. https://www.reuters.com/world/india/indias-fx-reserves-halt-7-week-losing-spree-rupee-pressure-eases-2025-01-31/
