2024-12-10 16:36

ROME, Dec 10 (Reuters) - Italy will scale back plans to increase taxes on cryptocurrency capital gains, ruling politicians said on Tuesday, following criticism from the affected industry and rows within the party of the economy minister. "The tax increase will be significantly reduced during the parliamentary work," lawmaker Giulio Centemero and Treasury Junior Minister Federico Freni, both from the co-ruling League party, said in a statement. Under the 2025 budget, to be approved by parliament by the end of December, the Treasury intended to hike taxation on capital gains from cryptocurrency such as bitcoin to 42% from 26%. But the League said that such a move would risk boosting the shadow economy. "No more prejudices about cryptocurrencies," Centemero and Freni said. Political sources said the government might even decide to leave the 26% rate unchanged. Sign up here. https://www.reuters.com/markets/currencies/italy-scale-back-tax-hike-cryptocurrency-capital-gains-lawmakers-say-2024-12-10/

2024-12-10 15:46

BUENOS AIRES, Dec 10 (Reuters) - Argentina's monthly inflation is likely to have remained under 3% in November, near its lowest level of the year but slightly up from the month before, underscoring the challenge for libertarian president Javier Milei to rein in prices. A Reuters poll of analysts published on Tuesday showed a median forecast rise of 2.8% in the month after 2.7% in October. Estimates ranged from a 2.4% increase to 3%. Argentina has been battling to bring down what has been the highest inflation rate in the world, peaking at almost 300% a year. The expected slight uptick comes after a steady decline in monthly inflation since a peak around 25% last December, when Milei took office pledging to slash public spending to bring down prices and close a big deficit. "The (downward) trend in recent months has been reversed. This slight monthly acceleration is likely driven by the increase in tariffs for regulated services, transport, fuel and food," local consultancy Management & Fit said. Lautaro Moschet, an economist with the Fundacion Libertad y Progreso, also expected inflation to be "slightly higher". "While this increase isn't alarming, given a higher incidence of regulated prices ... it's important to highlight a quickening of food prices, driven especially by meat," he said. The longer-term improvement in the inflation outlook has allowed the central bank to cut interest rates recently. A central bank poll expects annual inflation to end 2024 near 119%, well down from a peak earlier this year close to 300%, and 211% in 2023. The national statistics agency INDEC publishes official inflation data for November on Wednesday. Sign up here. https://www.reuters.com/markets/argentina-monthly-inflation-seen-under-3-november-sticky-2024-12-10/

2024-12-10 12:11

Sovereign debt oversupply risks have intensified - BIS Supply-demand imbalances forming in Treasury markets France, UK, Japan add to fiscal concerns LONDON, Dec 10 (Reuters) - The threat of soaring government debt supply destabilising financial markets has intensified, the world's top central banking advisory body said on Tuesday, as it urged policymakers to act swiftly to prevent economic damage. Claudio Borio, head of the Bank for International Settlements' monetary and economic department, said he was on alert for a government debt glut causing bond market ructions that could spill over into other assets. And while markets have not yet suffered so-called "bond vigilante" attacks, where debt investors send state borrowing costs sharply higher to force nations away from fiscal profligacy, policymakers should not wait for this to happen, he said. "Financial markets are beginning to realise they will have to absorb these growing volumes of government debt," he said as the BIS published its latest quarterly report. "It takes time for policymakers to adjust policies and if they wait for markets to wake up, it's going to be too late." Large government budget deficits suggest that sovereign debt could rise by a third by 2028 to approach $130 trillion, according to the Institute of International Finance (IIF) financial services trade group. U.S. President-elect Donald Trump's proposed tax cuts are expected , opens new tab to swell the nation's $36 trillion debt pile by almost $8 trillion, while the UK's new Labour government in its October budget raised previous five-year borrowing estimates by about 142 billion pounds ($181.55 billion). Bond fund PIMCO said on Monday it plans to diversify its government bond exposure by buying outside the United States, where its outlook on long-term government debt is bearish due to a deteriorating fiscal profile. The BIS report also cited political turmoil over France's budget deficit and expansionary policy in Japan as reasons for "the re-emergence of fiscal concerns." The yield on the 10-year U.S. Treasury, which influences price movements in sovereign, corporate and household debt worldwide, has risen by about 56 basis points (bps) since September, to around 4.22% . Traders widely anticipate a Federal Reserve rate cut this month but the BIS report said there was a supply-demand imbalance in the Treasury market, with dealers holding record amounts of unsold U.S. government debt on their books. With U.S. Treasury investors facing the twin perils of debt oversupply and stimulus spending boosting inflation, there were "more reasons to be worried now" than when the BIS cautioned about sovereign debt earlier this year, Borio said. The depth and liquidity of the $28 trillion Treasury market could insulate it from a sudden sharp rise in debt yields for some time, Borio said. "But it does mean that once (warning signs) show up, the impact on the global economy is bigger," he added. Elsewhere in its report, the BIS noted increasing uncertainty about where global interest rates would settle as major central banks embark on cuts but the global economy remains resilient, buoyed by strong U.S. growth. Global credit conditions remain "unusually accommodative," the report noted, and U.S. bank lending standards have loosened after the Nov. 5 election while Wall Street stocks rallied. The BIS noted that higher volatility in currency markets had reduced the incentive for traders to rebuild their positions following a sharp unwind in August of so-called carry traders that sparked ructions across world markets. ($1 = 0.7822 pounds) Sign up here. https://www.reuters.com/markets/global-markets-sovereign-2024-12-10/

2024-12-10 12:09

Project to store 400,000 tonnes of CO2 per year CO2 will be injected in a depleted oilfield Plans to start injections at end-2025 or early 2026 Could become EU's first CO2 storage in operation OSLO, Dec 10 (Reuters) - Chemicals group INEOS has taken a final investment decision with partners to build a CO2 storage project off Denmark, potentially the first such EU project to start operations, the firm owned by British billionaire Jim Ratcliffe said on Tuesday. The Greensand Future project aims to initially inject up to 400,000 tonnes a year of CO2 emitted at Denmark's biomethane plants for permanent storage at a depleted oilfield from the end of 2025 or early in 2026, INEOS said. Greensand Future is the third CO2 project in the North Sea to take a final investment decision, after the $621 million Northern Lights in Norway and the $1.3 billion Porthos project in the Netherlands. "Greensand Future will be the first CO2 storage facility in operation in the EU supporting both Danish and EU's climate objectives," INEOS Chairman Jim Ratcliffe said in a statement. Greensand project was initiated by the INEOS-led consortium a few years ago with the Danish government awarding it a 197 million Danish crown grant in 2021. INEOS has declined to disclose the size of the investment in the storage, citing commercial reasons and ongoing negotiations. Northern Lights in non-EU member Norway is a joint venture between Equinor (EQNR.OL) , opens new tab, Shell (SHEL.L) , opens new tab and TotalEnergies (TTEF.PA) , opens new tab. It was completed in September and plans to start CO2 injection in 2025. The Porthos project at Rotterdam's port aims to start injecting CO2 into depleted gas fields on the Dutch continental shelf in 2026. INEOS' partners in the Danish project are British oil and gas firm Harbour Energy (HBR.L) , opens new tab and Nordsoefonden, which manages the Danish state's interests in offshore oil and gas licences. INEOS said the decision to invest in the storage, opens the way for total investments of more than $150 million in a broader value chain of CO2 liquefaction, transportation and storage. The sum is lower than other CO2 capture and storage projects in the region as it will reuse the existing wells to inject the CO2 into an underground reservoir, people familiar with the project said. Biomethane plants already separate CO2 from methane, meaning that CO2 only needs to be liquefied before it can be transported, avoiding the need for expensive capture installations, they added. INEOS said the storage capacity could be gradually expanded to up to 8 million tonnes by 2030, depending on demand. ($1 = 11.1154 Norwegian crowns) Sign up here. https://www.reuters.com/sustainability/climate-energy/britains-ineos-partners-invest-co2-storage-off-denmark-2024-12-10/

2024-12-10 12:02

Head of union opposing U.S. Steel sale unconvinced of long-term viability Fears Nippon will import steel into U.S. from international mills Nippon trying to close deal before Donald Trump takes office Dec 10 (Reuters) - The head of a powerful labour union opposing U.S. Steel's (X.N) , opens new tab sale to Japan's Nippon Steel (5401.T) , opens new tab said he has not received assurances that the would-be owners are committed to ensuring the lasting success of the strategic U.S. firm. Nippon Steel's $15 billion takeover bid has been criticised by both President Joe Biden and President-elect Donald Trump and is subject to a national security review later this month by the secretive government panel CFIUS. David McCall, the head of the United Steelworkers union, spoke to Reuters on Monday as Nippon Steel published details of the various commitments it has made to get the union's backing including on job security and investments in facilities. One of McCall's top concerns is that Nippon may import steel into the U.S. from its international mills, a move he worries would erode a company that helped build the Empire State Building and arm allied forces in World War Two. "When we've had discussions with them there's been nothing that would assure us that there's a long-term viability in the operations," McCall told Reuters via video call from his office in Pittsburgh, Pennsylvania. "They (Nippon Steel) want a return on that investment and I understand that but it can't be harvesting our facilities and letting them slowly but surely over a period of time deteriorate so that they can then bring product in from their other facilities around the world and have access to our market." Nippon Steel has previously denied it will import steel from its international mills after it seals the deal and repeatedly said it aims to become an "insider" in the U.S., a market critical to its future growth. Nippon Steel and U.S. Steel did not immediately respond to a request for comment for this article. McCall also criticised the Japanese suitors for not trying to stop or intervene in what he called "bullying" from U.S. Steel CEO David Burritt to close the deal. Burritt told the Wall Street Journal in September that the firm would close steel mills and likely move its headquarters out of Pittsburgh if the sale failed. "He's like a schoolyard bully demanding your lunch money," he said of Burritt, adding the threats had "scared the hell" out of some of his members. Nippon Steel is racing to close the deal before Trump - who has vowed to block the transaction - takes office on Jan. 20. Sign up here. https://www.reuters.com/markets/deals/japanese-takeover-could-spell-long-term-decline-us-steel-union-chief-says-2024-12-10/

2024-12-10 11:58

Airlines lag in green fuel output, may miss 2050 net zero goal Sustainable fuel only 0.3% of jet fuel, rising to 0.7% by 2025 Green fuel needs big spending; few biorefineries being built IATA wants oil majors to shoulder green fuel responsibility GENEVA, Dec 11 (Reuters) - The aviation industry is not moving fast enough to reach its targets for producing and using sustainable aviation fuel, Willie Walsh, head of airline trade body IATA, said, as the sector aimed for net zero emissions by 2050. "We're not making as much progress as we'd hoped for and we're certainly not making as much progress as we need," Walsh said on Tuesday at an IATA media day in Geneva. Sustainable aviation fuel makes up only around 0.3% of the world's jet fuel usage and is projected to only account for 0.7% by 2025, according to IATA data, with experts saying the production rate of the green fuel needs to grow quickly for the sector to achieve its emissions goals. An IATA study presented on Tuesday showed that global production of green jet fuel in 2024 was only 1 million tons, lower than IATA's projection a year ago that it would be 1.5 million tons. Walsh pointed to a lack of biorefineries under construction which could produce the green jet fuel, many of which require extensive capital expenditure to get built. IATA has repeatedly pointed to oil majors to shoulder the responsibility to ramp up sustainable aviation fuel production, rather than airlines, who do not produce the fuel themselves. The trade body said it would launch a new project to better track global green aviation fuel initiatives next year to provide more transparency for the sector's progress. Europe lagged behind the United States in crafting incentives to boost investment in production facilities, Walsh said. Walsh said it was unclear what the incoming administration of President-elect Donald Trump would do regarding the 2022 U.S. Inflation Reduction Act (IRA) and how it would impact ongoing green aviation fuel production. "There was quite a lot of progress in the first Trump administration in this area as well. So I don't think this is a black and white issue," he told reporters. The IRA contains hundreds of billions of dollars in subsidies for clean energy and is billed as outgoing President Joe Biden's signature law to combat climate change. Sign up here. https://www.reuters.com/business/aerospace-defense/global-airlines-could-miss-sustainable-fuel-targets-iatas-walsh-says-2024-12-10/