2025-01-09 20:02
PARIS, Jan 9 (Reuters) - Nissan Motor Co Ltd (7201.T) , opens new tab is open to pooling with other carmakers in order to reach its CO2 targets in 2025, a spokesperson for the Japanese carmaker in Europe said to Reuters on Thursday. "Nissan is fully committed to an electrified future in Europe," she said. "2025 is challenging, given current overall market conditions, and regulatory changes. Therefore we're exploring short-term pooling options." She added nothing has been decided yet and did not comment on which other carmaker it could sign an agreement with. Companies can "pool" their emissions with EV segment leaders, purchasing emissions credits from them to lower their overall averages and save hundreds of millions of euros in penalties. EU filings on Tuesday showed companies including Stellantis, Mercedes and Toyota are planning to buy carbon credits from producers including Tesla and Polestar. Over the past years, Nissan used to be part of a pool on CO2 with Renault, its partner from the Renault Nissan alliance which has been revamped in 2023. Sign up here. https://www.reuters.com/business/autos-transportation/nissan-open-pooling-co2-avoid-fines-europe-2025-01-09/
2025-01-09 19:42
Bank of Mexico likely to consider larger rate cuts Board unanimously cut rate in December for fifth time in 2024 Headline inflation fell more than expected in December One member said it was necessary to increase magnitude of cuts Analysts lean toward bank making 25-basis-point cut in February MEXICO CITY, Jan 9 (Reuters) - The Bank of Mexico could increase the size of cuts to its benchmark interest rate in future meetings as inflation eases in Latin America's second-largest economy, minutes from the central bank's December monetary policy meeting showed on Thursday. Banxico, as the Mexican central bank is known, lowered its benchmark interest rate by 25 basis points to 10.00% in a unanimous decision by its governing board last month. "In view of the progress on disinflation, larger downward adjustments could be considered in some meetings, albeit maintaining a restrictive stance," the minutes said. A breakdown of the board members' positions showed three of the five members supporting the discussion of larger rate cuts. Banxico began a rate-cutting cycle last March amid easing inflation, ultimately delivering five 25-basis-point cuts to bring the benchmark rate down from the record 11.25% that it reached in 2023. The minutes "show that there is a consensus to continue lowering the rate at the next meeting, although there are differences in the pace at which this could occur," Actinver Research said in a note. DISINFLATION PROGRESS One of Banxico's board members pointed to "the undeniable progress in disinflation" to support their view that "it is necessary to increase the magnitude of rate cuts in some of the upcoming monetary policy decisions." Another member highlighted "the importance of communicating that adjustments of larger magnitude could be implemented at the next policy meetings." Banxico has taken a more hawkish approach to monetary easing than that of some of its Latin American counterparts, like Brazil and Uruguay, which have begun raising rates again after bringing them down quickly only to see inflation rebound. Two board members remained cautious, warning against premature monetary easing, with one "committed hawk" alerting against "accelerating the pace of easing or signaling that it could be done at future meetings," said Alberto Ramos, chief Latin America economist at Goldman Sachs. Still, a majority of directors acknowledged that the inflation outlook continued to improve, even though the board revised its year-end inflation forecasts for 2025 higher. "Most members stated that the revision in forecasts does not suggest an interruption in the disinflation process, but rather a more gradual reduction in headline and core inflation," the minutes said. Data published earlier on Thursday showed Mexico's annual headline inflation rate fell more than expected in December, reaching 4.21%. Banxico targets inflation at 3%, plus or minus one percentage point. Board member Jonathan Heath later said in a social media post on Thursday that the December inflation reading was "good news," noting that it was the first month in which inflation fell below the 4.26% level logged in October 2023. Given the inflation outlook, Goldman Sachs sees the bar to increase the pace of rate cuts to 50 basis points as "not excessively high," said Ramos, while Actinver sees a higher probability of a 25-basis-point cut from Banxico in February, "without ruling out the possibility of a 50-basis-point adjustment." Sign up here. https://www.reuters.com/world/americas/bank-mexico-board-sees-larger-rate-cuts-table-2025-01-09/
2025-01-09 19:26
OTTAWA, Jan 9 (Reuters) - Canada is considering slapping retaliatory tariffs on a slew of U.S. products including orange juice in case President-elect Donald Trump imposes a 25% tariff on goods imported from north of its border, a local newspaper said on Thursday. Orange juice is largely produced in Trump's home state of Florida. Other items under consideration include ceramic goods, some steel products, glassware, and a slew of plastic articles, The Globe and Mail said, citing a senior government source. The newspaper said the list of possible retaliatory targets was not final. Canada's Finance Ministry did not immediately respond to a request for comment. Trump vowed in November that he would impose a steep tariff on all goods imported from Canada and Mexico on his first day as U.S. president if the two countries failed to stop a flow of migrants and the drug fentanyl across their borders. Since then, the federal and the provincial governments in Canada have sprung into action and boosted border monitoring. They also met with likely key officials in the Trump administration. But Trump has so far not indicated if he would change his stance on tariffs. Sign up here. https://www.reuters.com/world/americas/canada-considers-retaliatory-tariffs-orange-juice-other-us-goods-paper-says-2025-01-09/
2025-01-09 18:57
Canadian dollar slips 0.1% against the greenback Trades in a range of 1.4366 to 1.4404 10-year yield rises to nearly six-week high TORONTO, Jan 9 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart for a third-straight day on Thursday as investors questioned the wisdom of suspending Canada's parliament at a critical time for the economy, and awaited domestic jobs data. The loonie was trading 0.1% lower at 1.4390 per U.S. dollar, or 69.49 U.S. cents, after moving in a range of 1.4366 to 1.4404. Canadian Prime Minister Justin Trudeau said on Monday he would step down in the coming months and that parliament would be prorogued until March 24. "Risk sentiment is a bit softer, equities are lower, the U.S. dollar is broadly higher and I think Trudeau's decision to prorogue parliament is not really coming off well," said Erik Bregar, director, FX & precious metals risk management at Silver Gold Bull. "Markets basically got to wait in limbo now for 2-1/2, three months, while the threat of tariffs looms." U.S. President-elect Donald Trump has promised to impose steep tariffs on trade partners, including a 25% tax on imports from Canada. A 25% tariff, if imposed on Canada alone, could reduce the nation's gross domestic product by nearly 3%, leaving the economy in recession, said Stephen Brown, deputy chief North America economist at Capital Economics, in a note. Canada is considering slapping retaliatory tariffs on a slew of U.S. products, including orange juice, a report said. The Canadian dollar is set to recoup only a small part of its recent losses in the coming year as expected U.S. tariffs cloud the economic outlook, a Reuters poll found. Canadian employment data for December, due on Friday, is expected to show the economy adding 25,000 jobs and the unemployment rate at 6.9%, up from 6.8% in November. The Canadian 10-year yield was up 1.1 basis points at 3.347%, trading just below a six-week high. Sign up here. https://www.reuters.com/markets/currencies/loonie-dips-investors-await-canadas-response-us-tariff-threat-2025-01-09/
2025-01-09 18:49
U.S. stock futures fall after market closure Volatility ebbs ahead of critical U.S. payrolls data Dollar towers near 2-yr peaks, up for 6th straight week SYDNEY/LONDON, Jan 10 (Reuters) - Global stocks were under pressure on Friday ahead of a U.S. jobs report later on that could exacerbate or ease the sell-off in the global bond market, while the pound headed for a fourth daily drop after British debt yields soared to 16-year highs. Volatility was more subdued in early European trading as traders stuck to their positions ahead of the upcoming employment data after this week's gyrations across markets. European stocks eased, with the STOXX 600 (.STOXX) , opens new tab down 0.1%, as gains in telecoms and basic materials offset losses in more defensive sectors such as utilities and consumer staples. Nasdaq futures and S&P 500 futures were down 0.1%, indicating a modestly lower start later on Wall Street, where markets closed overnight to mark the funeral of former U.S. President Jimmy Carter. The closely watched U.S. nonfarm payrolls report at 8:30 a.m. U.S. Eastern time (1330 GMT) is forecast to show a rise of 160,000 in jobs in December, while unemployment holds at 4.2%. Anything stronger could see 10-year Treasury yields spike to 13-month peaks and lift the U.S. dollar in the process. Analysts at ING believe a result below 150,000 new jobs would be needed to stop Treasury yields from rising further. "Payrolls, as always, are a pivotal report. But we need to deviate materially from consensus to have an effect this time around," said Padhraic Garvey, regional head of research, Americas, at ING. "Given the move already in Treasuries, there is some talk that Friday's numbers will need to be strong to continue this momentum, and in that sense there is some vulnerability for a lower yield reaction to a consensus outcome." In Asia, Japan's Nikkei (.N225) , opens new tab fell 0.9%, taking its weekly loss to 1.6%, while the MSCI index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) , opens new tab closed 1.2% lower on the week. The VIX volatility index (.VIX) , opens new tab, a measure of investor nervousness, was flat on the day in European trading, having touched a three-week high earlier this week, when anxiety about the rise in global long-term bond yields peaked. FED CAUTION Fed officials Patrick Harker, the president of the Philadelphia Fed, and Kansas City President Jeff Schmid signalled they did not believe the central bank needed to cut rates imminently. This had little bearing on market pricing, as traders have already only priced in around 43 basis points of U.S. rate cuts for 2025. Concerns about President-elect Donald Trump's potentially inflationary agenda have helped set these expectations and have been at the heart of this week's rise in long-term bond yields. The benchmark 10-year U.S. Treasury yield rose 1.7 basis points to 4.6977%, below Wednesday's eight-month peak of 4.73%. Traders are watching the 4.739% mark, as a break above here could trigger a rise to 5%, a level not seen since 2007. This week's near-10 bp rise in Treasury yields has helped push the dollar to a sixth weekly rise. In sharp contrast, British gilt yields have risen nearly a quarter of a percentage point to around 4.8%, their highest since 2008, which has weighed on the pound . The pound fell for a fourth day on Friday, dropping 0.1% to $1.2293, having hit its lowest since November 2023 overnight, as concern has mounted over Britain's finances in light of the sharp increase in government borrowing costs, which outweighed the appeal of higher returns on British assets. A strong U.S. payrolls report could dent sterling further, according to XTB research director Kathleen Brooks. "A strong payrolls report could add to the selling pressure on UK bonds and increase fears of a fiscal crisis in the UK. It could also weigh on the pound, which has been one of the weakest performers in the FX market since the start of this year," she said. In commodities, oil prices rose on Friday, with Brent crude futures up 2.6% to $78.95 a barrel, while European natural gas prices , fell 2.9%, set for a near-9% fall this week. Gold prices headed for a 1.6% weekly rise, trading around $2,680, close to its highest since December. Sign up here. https://www.reuters.com/markets/global-markets-wrapup-1-2025-01-09/
2025-01-09 18:30
Jan 9 (Reuters) - A unit of French energy company TotalEnergies (TTEF.PA) , opens new tab agreed to pay $5 million to settle claims by U.S. energy regulators that it and some of its traders allegedly manipulated the natural gas market in 2009-2012. The settlement is much smaller than the $214 million the U.S. Federal Energy Regulatory Commission (FERC) had sought from TotalEnergies' Total Energies Gas & Power North America (TGPNA) unit and some of its traders. To fully resolve the claims and allegations, the TotalEnergies unit agreed to pay $5 million in restitution to certain agreed-upon non-governmental organizations, FERC said in an order on Wednesday. The order was neither an admission of liability by the TotalEnergies' unit nor a concession by FERC Enforcement that its claims are not well-founded, FERC said. "TGPNA is pleased with the settlement agreement approved by FERC that fully resolves FERC’s investigation into some of TGPNA’s gas-trading activities more than ten years ago," a spokesperson at TotalEnergies said. "The settlement dismisses all of (FERC) Enforcement’s claims and allegations with prejudice. From the start, TGPNA had consistently stated that it acted lawfully and TGPNA is pleased to put this matter behind (it)," the spokesperson said. In 2015, FERC alleged the TotalEnergies' unit made intentionally losing trades - known as "uneconomic" trading - in order to affect index prices in the U.S. Southwest on at least 38 occasions between June 2009 and June 2012. Those losses would be offset by larger gains on other related positions, FERC said. It was one of a series of so-called loss leader, or leveraged trading strategies, that FERC has pursued over the past couple of decades in which traders lose money in one market to benefit larger positions in a benchmark or other financial index. Sign up here. https://www.reuters.com/business/energy/totalenergies-pay-5-million-settle-us-ferc-natgas-manipulation-case-2025-01-09/
