2025-01-30 23:58
BUENOS AIRES, Jan 30 (Reuters) - Argentina's central bank cut its benchmark interest rate by 300 basis points to settle at 29%, it announced in a statement on Thursday, as inflation continues its downward path in South America's No. 2 economy. Traders expected a cut, as the rate of rising consumer prices falls and the monetary authority is set to slow the monthly pace of devaluation of the local peso currency. Starting next week, the regular devaluation, known as the crawling peg, will slow to 1% a month from 2% a month previously. Over the past year, Argentina's inflation rate has slid sharply from double-digit increases since President Javier Milei took office in late 2023. December's monthly inflation rate came in at just 2.7%, while last year's annual price growth slowed to about 118%. Sign up here. https://www.reuters.com/markets/rates-bonds/argentina-central-bank-cuts-benchmark-interest-rate-29-previous-32-2025-01-30/
2025-01-30 23:57
Jan 30 (Reuters) - Private equity-backed Infinity Natural Resources raised $265 million on Thursday in its initial public offering in the U.S., the latest first-time share sale by an energy company in New York in recent weeks. The IPO valued the Morgantown, West Virginia-based oil and natural gas producer at about $1.18 billion. The company, backed by buyout firms Pearl Energy Investments and NGP, sold nearly 13.3 million shares at $20, which is within the marketed range of $18 and $21. The offering is expected to close on Feb. 3, subject to customary closing conditions, the company said. Energy has been a major theme in the IPO market so far this year as companies increasingly look to tap into investor fervor towards the industry. Founded in 2017, Infinity produces oil, natural gas, and natural gas liquids, with its operations located in the Appalachian basin in the northeastern United States. Infinity is going public after more than doubling its revenue in the first nine months of 2024. The strong growth came as the company's oil production volumes benefited from wells acquired from Utica Resources Ventures and PEO Ohio in October for $279 million. Private equity-backed artificial lift firm Flowco (FLOC.N) , opens new tab and LNG exporter Venture Global (VG.N) , opens new tab also went public in New York earlier this month. Infinity, which tapped 14 banks for the IPO, is expected to begin trading on the New York Stock Exchange under the symbol "INR" on Friday. Citigroup, Raymond James and RBC Capital Markets were the lead underwriters for the offering. Infinity will use the IPO proceeds to repay its outstanding debt and for other purposes. Pearl and NGP will collectively hold a substantial majority of Infinity's common stock and voting power after the offering. Sign up here. https://www.reuters.com/business/energy/pearl-energy-backed-infinity-natural-resources-raises-265-mln-us-ipo-2025-01-30/
2025-01-30 23:55
SAO PAULO, Jan 30 (Reuters) - Brazilian Finance Minister Fernando Haddad said on Thursday he expects food prices to soften this year due to strong agricultural production and as Brazil's currency regains some ground, but noted that prices would likely still remain high. In an interview with local TV channel RedeTV, Haddad said food prices tend to stay at high levels until food production "corrects this price distortion to an adequate level." Haddad added that the government sees Brazil's economy growing 2.5% in 2025, slowing from an expected 3.5% last year. "I believe we have room to grow 2.5% by reducing inflation," he told RedeTV, which broadcast parts of the interview on its main evening show. Earlier this week, Brazil's central bank raised its benchmark interest rate by 100 basis points to 13.25%, and confirmed another hike of that size in March, amid mounting inflationary pressures. The full interview with Haddad will be broadcast later on Thursday. Sign up here. https://www.reuters.com/world/americas/brazils-finance-minister-sees-food-prices-falling-this-year-though-still-high-2025-01-30/
2025-01-30 23:45
NAPERVILLE, Illinois, Jan 30 (Reuters) - Brazil’s slow soybean harvest means that supplies are not reaching buyers as quickly as they might have hoped. But China, the destination for more than 70% of Brazil’s annual soy exports, does not appear concerned. A delayed Brazilian harvest can sometimes widen the export window for U.S. soybeans, but both overall shipments and participation from China have recently been lackluster. U.S. soybean export sales to China spiked for a week in mid-January, but that may have been a one-off event. Weekly volumes have been mostly below average in the last couple of months, even when compared against relatively lighter expectations. As of Jan. 23, U.S. export sales to China for the 2024-25 marketing year accounted for 47% of all bookings, a 17-year, non-trade-war low. Another 9% of sales are assigned to unknown destinations, which is close to normal and not indicative that Chinese purchases are being hidden. Volume-wise, Chinese bookings of U.S. soybeans are down 3% on the year, similar to the year-on-year reduction that the U.S. Department of Agriculture predicts for China’s 2024-25 soy imports. But China’s recent intake has fallen well short of that mark due to smaller shipments from Brazil. November-December imports declined 15% on the year despite an equivalent rise in U.S. arrivals. Aside from the Brazilian delays, China’s agriculture minister last week said that the country’s hog sector had recovered from a loss-making phase, which in theory would support soybean demand. Chinese soybean crush margins have also improved in recent weeks. These factors and stats prevent a favorable spin on China’s involvement in the U.S. soybean market as of late. Some industry members suggested China stocked up on U.S. soybeans ahead of potential trade tariffs, but U.S. export data does not support that idea. Chinese arrivals may remain thinner for several more weeks as Brazil’s January exports likely fell well short of last year’s levels as well as previous expectations. But Brazilian bean supplies should be plentiful from next month, and they are competitively priced. Shipping lineups suggest Brazil’s February soy exports will top average levels and possibly even challenge year-ago volumes, despite this year’s harvest delays. It is not all bad news for the United States. Despite USDA’s below-average 2024-25 export forecast, U.S. soybean sales to non-China destinations are the third-highest ever for the date and up 30% on the year. Sales to Europe in particular are well above normal. But China is still critical, accounting for 54% of all U.S. soybean exports in 2023-24. It is unclear if this trade flow will be threatened further since U.S. President Donald Trump as of Thursday was considering imposing tariffs on Chinese goods, potentially as early as this weekend. However, soybean prices are reflecting the grim situation, especially relative to corn. U.S. farmers this spring are expected to ditch a significant number of soybean acres versus last year in favor of the yellow grain, which could help keep U.S. soybean supplies in check. Karen Braun is a market analyst for Reuters. Views expressed above are her own. Sign up here. https://www.reuters.com/markets/commodities/china-passes-us-soybeans-despite-brazilian-delays-braun-2025-01-30/
2025-01-30 23:37
WELLINGTON, Jan 31 (Reuters) - New Zealand said late on Thursday that it would make a commitment that by 2035 the country would have reduced emissions by 51% to 55% compared to 2005 levels. The commitment is part of the country’s commitment under the Paris Agreement. Its initial commitment had been to reduce emissions by 50% by 2030 and is part of the country’s pledge to be net zero by 2050. “We have worked hard to set a target that is both ambitious and achievable, reinforcing our commitment to the Paris Agreement and global climate action,” Climate Change Minister Simon Watts said in a statement. “Meeting this target will mean we are doing our fair share towards reducing the impact of climate change,” he added. Watts said New Zealand was on target to meet its commitments as early as 2044. However, Climate Commission, a government-funded but independent expert, in December called for New Zealand to target reducing emissions further than its original effort as many comparable countries have more ambitious targets than New Zealand and evidence shows that global action is insufficient to limit global warming to 1.5 degrees Celsius. Sign up here. https://www.reuters.com/world/asia-pacific/new-zealand-targets-cutting-emissions-by-51-55-by-2035-2025-01-30/
2025-01-30 23:28
NEW YORK, Jan 30 (Reuters) - The Mexican peso fell 1% against the dollar in a volatile session on Thursday after U.S. President Donald Trump reiterated his threat to impose 25% tariffs on Mexico and Canada, two of its top trade partners. The peso closed 1% weaker at 20.71 per dollar, after having strengthened during the session as much as 0.5%. It started the overnight session little changed and was recently trading at 20.70 per dollar. The Canadian dollar touched a five-year low against the greenback. Trump on Thursday said he would likely decide by the end of the day whether to exclude Canadian and Mexican oil imports from the tariffs that he has vowed to impose on Saturday on the countries' products. The market is taking a defensive stance towards the Mexican currency but has still not fully priced in the tariff threats according to Alejandro Cuadrado, global head of FX and LatAm Strategy at BBVA. "The initial (market) reaction is negative, but it's not discounting a formal materialization of tariffs," he said, adding that the link to border security and drugs still gives Trump an excuse to delay implementation. But the market is likely to remain volatile. "Because of the different trade relationships, immigration... Canada and Mexico are still not going to be off the hook anyway,” Cuadrado said. The Mexican currency weakened 2% on Monday after a short-lived weekend threat from Trump to impose tariffs on Colombian products put the issue back in the spotlight. On Wednesday, U.S. Commerce Secretary nominee Howard Lutnick said Canada and Mexico could avoid the tariffs if they acted swiftly to close their borders to fentanyl trafficking. Sign up here. https://www.reuters.com/markets/currencies/mexican-peso-drops-1-trump-reiterates-tariff-threat-2025-01-30/
