2025-01-21 11:15

Jan 21 (Reuters) - President Donald Trump in an executive order on Monday revoked a ban , opens new tab imposed by former Democratic President Joe Biden on new offshore oil and gas development along most of the country's coastlines. Trump is certain to face legal challenges over his authority to do so. WHAT DID BIDEN AND TRUMP DO? Biden on Jan. 6 used his authority under the 70-year-old Outer Continental Shelf Lands Act to withdraw all federal waters off the East and West coasts, the eastern Gulf of Mexico and portions of the northern Bering Sea in Alaska from oil and gas drilling. Biden said the move aligned with his efforts to combat climate change, saying "drilling off these coasts could cause irreversible damage to places we hold dear and is unnecessary to meet our nation's energy needs." Trump had long pledged to expand oil and gas development. He revoked the offshore drilling ban on Monday, one of dozens of actions taken by Biden that Trump repealed on his first day in office. Trump also revoked an earlier action Biden took in March 2023 that prevented oil and gas drilling in 2.8 million acres in the Arctic Ocean. CAN TRUMP DO THAT? Legal experts say the question of whether a president can revoke a predecessor's decision to invoke the Outer Continental Shelf Lands Act (OCSLA) and withdraw areas from mineral leasing and drilling remains legally unsettled. While the law expressly grant presidents the authority to set aside lands, the 1953 measure is silent on whether they are able to revoke prior decisions. The question has only ever been addressed once in court, during Trump's first administration. WHAT WAS THAT CASE? Environmental groups sued after Trump, in April 2017, issued an executive order designed to revoke a similar decision by Democratic former President Barack Obama. Obama invoked OCSLA and put the Arctic’s Chukchi Sea, part of the Arctic’s Beaufort Sea off-limits to oil leasing, along with a large swath of Atlantic Ocean off the U.S. East Coast. In 2019, U.S. District Judge Sharon Gleason in Anchorage ruled Trump's order was unlawful. "Had Congress intended to grant the President revocation authority, it could have done so explicitly, as it had previously done in several (but not all) of its previously enacted upland laws," she wrote. Trump's administration in defending his order had cited language in the OCSLA stating that a president may "from time to time" withdraw unleased lands, saying this carried with it an authority to revise prior withdrawal decisions. But Gleason, an Obama appointee, in her ruling , opens new tab said the OSCLA left only Congress with the power to overturn withdrawals of land. Before the San Francisco-based 9th U.S. Circuit Court of Appeals could rule on the Trump's administration's appeal of her decision, Biden took office and on his first day revoked Trump's order, mooting the case. WILL TRUMP'S NEW ORDER END UP IN COURT AS WELL? Trump's executive order to undo Biden's action will likely invite a new legal challenge from environmentalists and potentially settle the question of a president's revocation authority. But Biden's order itself is already being challenged in court in two separate lawsuits, including one by five Republican state attorney general and two industry trade groups American Petroleum Institute and the Gulf Energy Alliance and another by Republican Texas Attorney General Ken Paxton , opens new tab, alongside oil and natural gas producer W&T Offshore(WTI.N) , opens new tab. Sign up here. https://www.reuters.com/business/energy/can-trump-overturn-bidens-offshore-drilling-ban-2025-01-21/

2025-01-21 11:06

Bitcoin gains after initial disappointment with Trump's crypto policies Analysts warn of volatility until concrete crypto policies announced Trump's crypto ventures criticized for potential conflicts of interest NEW YORK/SINGAPORE/PARIS, Jan 21 (Reuters) - Bitcoin, the world's largest cryptocurrency, approached the previous session's record high on Tuesday in choppy trading as the top U.S. markets regulator unveiled a plan to overhaul rules for the sector. Bitcoin hit a record high $109,071 on Monday when Trump, who has pledged to be a "crypto president," was sworn in, but sank when crypto was not included in a flurry of on Day One. Bitcoin prices rose 3.8% while Ethereum , the second-largest cryptocurrency, gained 1.4% as the market shook off some of that disappointment. The Securities and Exchange Commission's new leadership said on Tuesday it had created a task force to develop a regulatory framework for digital assets, the first major move by Trump's new administration to overhaul crypto policy. "The president has moved quickly on his agenda," Coinbase Chief Legal Officer Paul Grewal said in a phone interview. "The SEC has made it clear they understand that and want to be a part of that." Some analysts warned, however, of volatility until Trump's administration starts to announce concrete policies long hoped for by the crypto industry. "The digital asset market is disappointed to not have been mentioned in the inauguration speech or Day One executive orders," said Geoffrey Kendrick, global head of digital assets research at Standard Chartered. "I suspect Bitcoin will end up going lower so long as we get no news from Trump on digital assets. A break back below $100,000 seems inevitable." Trump's own $TRUMP-branded "meme coin," launched on Friday evening, fell on Tuesday, according to cryptocurrency price tracker CoinMarketCap. World Liberty Financial, a separate Trump-linked crypto project, also said on Monday it had completed an initial token sale, raising $300 million, and that it would issue additional tokens. Trump has pledged to hand management of his assets to his children, but ethics experts have criticized his crypto ventures as raising conflict of interest issues and stoking speculation in a volatile asset class. Acting SEC Chair Mark Uyeda's office said on Tuesday the agency's new task force would help to draw clear regulatory lines, provide paths to registration, craft disclosure frameworks and deploy enforcement resources. Reuters reported earlier this month that Uyeda and fellow Republican Commissioner Hester Peirce were poised to kickstart the crypto policy overhaul. Trump is also still expected to issue executive orders in coming days that will further promote Bitcoin adoption, Reuters and other media outlets have reported. Speaking to Reuters Global Markets Forum at the start of this week's World Economic Forum's annual meeting in Davos, Jeremy Allaire, CEO of stablecoin issuer Circle, said he expected imminent executive orders that could allow banks to trade crypto, offer crypto investments to wealthy clients and hold it in portfolios. Sign up here. https://www.reuters.com/technology/bitcoin-trump-slide-waiting-crypto-president-trumps-promises-2025-01-21/

2025-01-21 11:06

A look at the day ahead in U.S. and global markets from Mike Dolan Likely a taste of things to come, stock and currency markets were knocked back and forth on the first day of Donald Trump's new presidency as they second guessed his trade tariff plans and remained largely in the dark on the issue as U.S. markets return from Monday's holiday. Trump's inauguration was accompanied by dozens of executive orders and directives - ranging from emergency immigration curbs on the Mexican border to more oil drilling, a demand that government agencies control inflation, U.S. withdrawal from climate accords and pardons for 2021's Capitol Hill rioters. But there were no specific Day One measures on long-promised trade tariffs - something flagged early on Monday by a Wall Street Journal report that weakened the U.S. dollar sharply and lifted overseas stock markets seen to be in the firing line. Just as that relief set in through the day, however, prompting one of the biggest drops in the dollar index (.DXY) , opens new tab of the year and rallies in European and Chinese stocks, Trump later responded to questions by saying he was thinking of 25% tariffs on Mexico and Canada from Feb. 1, blaming a lack of action by both countries on flows of illegal migrants and fentanyl. However, he also suggested his plans for a universal tariff on all U.S. goods imports were not yet in the works. "We may. But we're not ready for that yet," Trump said. The upshot was that Monday's rallies in Mexico's peso and the Canadian dollar were almost entirely reversed and half of the euro's jump was wiped. China's offshore yuan , which had staged its biggest one-day rise since August on Monday, gave back almost half of that move too. European stocks (.STOXX) , opens new tab, which had advanced on Monday, were flat earlier today and mainland Chinese stocks (.CSI300) , opens new tab also stalled after giving up early gains of almost 1%. Hong Kong's Hang Seng (.HSI) , opens new tab, however, closed 0.9% up on the day. In a presidential memo, Trump directed Commerce and Treasury departments and the U.S. Trade Representative to probe the economic and national security risks of large trade deficits and "recommend appropriate measures, such as a global supplemental tariff, or other policies, to remedy such deficits". The memo called for the USTR to assess China's performance under the "Phase 1" trade deal he signed with Beijing in 2020 to end a nearly two-year tariff war. For Wall Street stocks returning after the Martin Luther King holiday on Monday and in the thick of the fourth-quarter earnings season too, the overall picture appears to remain positive and index futures were up to 0.5% up before Tuesday's bell. Netflix (NFLX.O) , opens new tab tops the corporate diary later. Encouraged by the equivocation on tariffs and the rather vague prioritisation of anti-inflation measures, 10-year U.S. Treasury yields extended last week's retreat to hit their lowest since Jan. 2. But with 2-year yields backing up a touch to 4.25%, the 2-to-10-year yield curve gap narrowed to its flattest for the year. Dampened by Trump's repeated push on more oil drilling and U.S. self-sufficiency in oil and gas, the retreat of U.S. crude oil prices to their lowest in 10 days helped improve the mood in bonds too - reinforcing the more benign view of underlying inflation that saw Treasuries bounce last week. However, not much in Trump's first day seemed to alter market thinking on the Federal Reserve. Another quarter-point cut remains priced by midyear and futures see a 60% chance of a second move of that magnitude later in the year. In specific sectors, the new President's withdrawal from climate talks and his planned rollback of numerous alternative energy initiatives from the previous administration saw global green stocks take a hit. Wind power stocks in Europe, including Vestas Wind Systems (VWS.CO) , opens new tab and Nordex SE (NDXG.DE) , opens new tab fell 4.7% and 3.6%, respectively, as Trump suspended new federal offshore wind leasing pending an environmental and economic review. Orsted (ORSTED.CO) , opens new tab also tumbled 15.3% on the news as the offshore wind developer posted an impairment charge of $1.69 billion related to its U.S. offshore portfolio. And for previously ebullient crypto markets, the absence of any specific reference to the digital token industry on the inauguration day was seen as a disappointment. Bitcoin and other crypto tokens, and even the newly minted token bearing Trump's name, recoiled on Tuesday from new records set earlier in the week. Elsewhere, the British employment report held something of a mixed picture for the pound and UK markets. UK pay growth stayed stubbornly strong in the three months to November but there were more signs of a softening jobs market. Growth in private-sector pay excluding bonuses - a measure watched closely by the Bank of England as a gauge of domestic inflation pressure - rose to 6.0% in the three months to November from 5.5% in the three months to October. But the number of employees registered by businesses fell 47,000 in November - the biggest monthly drop in four years. Key developments that should provide more direction to U.S. markets later on Tuesday: * Canada December consumer price inflation * US corporate earnings: Netflix, Capital One, Seagate Technology, United Airlines, 3M, DR Horton, KeyCorp, Charles Schwab, Fifth Third, Prologis * World Economic Forum in Davos, including German Chancellor Olaf Scholz, South Africa's President Cyril Ramaphosa, Argentina's President Javier Milei etc * ECOFIN meeting of European Union finance ministers in Brussels, with European Central Bank Vice President Luis de Guindos in attendance Sign up here. https://www.reuters.com/markets/us/global-markets-view-usa-2025-01-21/

2025-01-21 11:02

LONDON, Jan 21(Reuters) - The pound fell against a rebounding dollar on Tuesday even as U.S. President Donald Trump stopped short of implementing tariffs as signs of a softening British labour market reinforced expectations for a February rate cut from the Bank of England. Trump did not immediately impose tariffs on U.S. imports on his first day back in the White House but told reporters he was considering import tariffs of around 25% on Canada and Mexico by Feb. 1, challenging suggestions his trade policy may be more gradual. The dollar fell sharply on Monday after Trump's first day included no specific news on tariffs, lifting sterling and other trade-exposed currencies. The pound was down 0.6% against the dollar on Tuesday at $1.2255, having jumped 1.3% on Monday, its biggest daily jump since November 2023. "Expect a lot of headline-related noise this week, with action in the crosses based on tariff threat perception," said Francesco Pesole, FX strategist at ING. Meanwhile, British pay growth stayed stubbornly strong in the three months to November, although other measures on the health of the labour market indicated a softening employment picture. Data provided by employers to the tax authorities showed the number of employees dropped by 47,000 in December, the sharpest fall since November 2020, following a 32,000 drop a month earlier. Market expectations for a BoE rate cut in February held firm after the data, with traders pricing in around an 85% chance of a quarter-point cut. "This data will give the Bank of England a green light to cut in February," said Dominic Bunning, head of G10 FX strategy at Nomura. "There wasn't really a huge shock in the data so there's no reason to think differently having seen the numbers." The pound was little changed against the euro at 84.5 pence . ING's Pesole believes there may be upside risks for euro-sterling in the near term as "markets can still price in more Bank of England easing and continue to embed idiosyncratic GBP risks related to higher borrowing rates." The 10-year gilt yield was down 0.5 basis points on Tuesday, falling for a fifth straight day, after touching its highest level since 2008 on Jan. 9. Sign up here. https://www.reuters.com/markets/currencies/sterling-falls-against-rebounding-dollar-trump-tariff-outlook-2025-01-21/

2025-01-21 10:52

STOCKHOLM, Jan 21 (Reuters) - Legislation is needed in Sweden to protect the status of cash, usage of which has been declining for a long time in the Nordic country, central bank Deputy Governor Aino Bunge said on Tuesday. "The digitalisation of the payments market has helped make payments faster and more convenient for most people," the Riksbank's Bunge said in the written summary of a speech. "At the same time, cash is needed – so that everyone can pay, as well as to provide an additional means of payment in the event of crisis or war," she said. The transition towards digital payments has been faster in Sweden than in most other countries. Sign up here. https://www.reuters.com/markets/europe/legislation-needed-sweden-protect-status-cash-riksbanks-bunge-says-2025-01-21/

2025-01-21 10:51

MUMBAI, Jan 21 (Reuters) - The Indian rupee shed much of its early gains to close largely unchanged on Tuesday as the U.S. dollar recovered after President Donald Trump said he was thinking about imposing tariffs on Canada and Mexico. The rupee closed at 86.5775 against the U.S. dollar, down from its close of 86.5675 in the previous session. While the local unit touched a peak of 86.2825 early in the session, it trimmed the gains on the back of broad-based dollar bids and a 0.5% rise in the dollar index after it touched a two-week low on Tuesday. State-run banks were spotted intermittently offering dollars, which helped limit the pressure on the rupee, traders said. U.S. President Donald Trump refrained from imposing tariffs on his first day in office on Monday, sending the dollar sharply lower, but later said he is considering a 25% levy on imports from Canada and Mexico, sparking a recovery in the greenback. U.S. bond yields were lower on the day but managed to trim their decline, with the 10-year Treasury yield recovering to 4.57% after hitting a near three-week low on Tuesday. "Markets are at least cautiously optimistic that indiscriminate universal tariffs won’t be delivered all in one go," ING Bank said in a note. "Expect a lot of 'headline trading' and short-term noise, with risks still skewed for a stronger dollar," it said. Meanwhile, dollar-rupee forward premiums dipped on Tuesday on the back of buy/sell swaps conducted by state-run banks, most likely on behalf of the Reserve Bank of India (RBI), traders said. The RBI has frequently conducted buy/sell USD-INR swaps to manage the impact of its spot market interventions on rupee liquidity in the banking system. Sign up here. https://www.reuters.com/markets/currencies/rupee-ends-little-changed-dollar-regains-footing-trumps-tariff-plan-2025-01-21/