2025-12-15 12:42
PARIS, Dec 15 (Reuters) - French farmers are protesting against government measures, including the culling of entire cattle herds, aimed at containing an outbreak of lumpy skin disease among livestock in France and other parts of Europe. Here's what you need to know about the disease, which does not affect humans, and why the latest outbreak matters. Sign up here. WHAT IS LUMPY SKIN DISEASE? Lumpy skin disease is a viral infection mainly spread by biting insects, affecting cattle and buffaloes. It causes fever and painful skin lumps, weakens animals and reduces milk output. The disease does not infect humans, either through contact or by consuming meat or dairy products, but it can trigger trade bans and cause heavy financial losses. The disease, widespread in North Africa, appeared in Sardinia and northern Italy in late June, then in France's eastern Savoie region before spreading to the southwestern of the country. It has also been detected in Spain. WHAT'S AT STAKE? If left unchecked, the disease could wipe out 1.5 million cattle in France, or about 10% of the national herd, Agriculture Minister Annie Genevard told daily newspaper le Parisien. It also threatens dairy and beef exports and could pressure prices. Britain banned imports of raw-milk cheese from France but lifted the embargo earlier this month. Canada has restricted some French dairy products, citing the risk of disease spread and its impact on cattle production. HOW IS THE DISEASE CONTROLLED? France has launched a campaign to vaccinate an additional one million cattle in affected regions by December 13, on top of the one million already inoculated. But vaccination comes too late for farms where cases have been detected. French rules require an entire herd to be culled if a single cow is infected. Movement of animals is also banned within and from outbreak zones, making it harder for farmers to send cattle to slaughter. Italy and Spain also cull herds when the disease is detected. HOW ARE FARMERS' PROTESTS LINKED TO THE DISEASE? President Emmanuel Macron's government says culling entire herds is necessary to stop the disease spreading. The main FNSEA farmers' union backs the policy, but smaller unions say killing healthy animals is excessive and destroys livelihoods. Farmers have staged protests in southwestern France, blocking highways with tractors and hay bales and clashing with police. The crisis comes as farmers also complain about what they see as excessive EU red tape and the Mercosur trade deal the EU hopes to finalise with South American nations before year-end. Farmers fear the deal will lead to cheaper imports, undercutting European producers. https://www.reuters.com/business/healthcare-pharmaceuticals/what-is-lumpy-skin-disease-cattle-why-are-french-farmers-angry-2025-12-15/
2025-12-15 12:32
BRASILIA, Dec 15 (Reuters) - Brazil's economy started the fourth quarter on a weaker footing, central bank data showed on Monday, as analysts closely monitor activity indicators to calibrate their bets on when a monetary easing cycle might start. The IBC-Br economic activity index, a proxy for gross domestic product (GDP), fell 0.2% in October from the previous month, undershooting the forecast of 0.1% growth from economists polled by Reuters. Sign up here. Based on central bank estimates for agriculture, industry and services, along with production-related taxes, the index would have contracted 0.3% month on month without support from a 3.1% expansion in the farm sector, the only positive contribution in the period. On a non-seasonally adjusted basis, the index rose 2.5% in the 12 months through October. The central bank last week held its benchmark interest rate at 15% for a fourth consecutive meeting, maintaining a hawkish stance and reiterating the need to keep rates unchanged for a prolonged period to bring inflation back to its 3% target. While policymakers offered no guidance on when rate cuts might begin, economists expect easing to start in the first quarter of next year, with most forecasting an initial move in March, though many see scope for a cut as early as January. https://www.reuters.com/world/americas/brazils-economic-activity-starts-q4-weaker-footing-2025-12-15/
2025-12-15 12:31
LONDON, Dec 15 (Reuters) - The pound held steady on Monday ahead of a string of UK data that could help cement expectations for a Bank of England rate cut later in the week. Markets show traders are almost fully pricing in a rate cut on Thursday, when the BoE meets, and traders expect another cut by the middle of 2026, with a possibility of a second by year-end. Sign up here. Inflation is still running at nearly twice the BoE's 2% target rate, but the economy is slowing. Data last week showed that, on a monthly basis, Britain's gross domestic product was barely changed, or contracted, every month since June. In October, GDP shrank by 0.1% both in the August-October period and during the month alone, against forecasts for a flat reading and a 0.1% rise, respectively, as the economy lost momentum in the run-up to finance minister Rachel Reeves' budget in November. Sterling , which has risen 7% this year against the dollar, was at $1.3382, little changed on the day, while trading slightly weaker against the euro, which held at 87.755 pence . Investors are waiting for the delayed release of the U.S. November non-farm payrolls report on Tuesday to set the tone for the dollar. UK wage growth data is due on Tuesday and consumer price inflation (CPI) on Wednesday. Both will come under close scrutiny from investors. They are unlikely to change expectations for Thursday's BoE meeting, but could prove key in shaping the policy outlook for 2026, analysts said. "At last, even in these sleepy weeks before Christmas, there is still much to discuss," Caxton strategist David Stritch said. "Whilst the delayed U.S. non-farm payroll data releasing tomorrow may have the most worldwide traders glued to their desks, UK CPI, unemployment and the BoE decision will be the most crucial for the sterling 2026 outlook." Data on Monday from property website Rightmove showed asking prices for British homes have fallen by more than is usual for the time of year, in what could be a reflection of increased uncertainty in the property market ahead of last month's budget. https://www.reuters.com/world/uk/sterling-holds-steady-ahead-boe-decision-this-week-2025-12-15/
2025-12-15 12:25
MOSCOW, Dec 15 (Reuters) - Russia is considering an extension of diesel and gasoline export restrictions until February, state news agencies reported on Monday, citing anonymous sources. Russian Deputy Prime Minister Alexander Novak chaired a meeting on the fuel market on Monday attended by officials from the energy ministry, Federal Anti-Monopoly Service and oil company representatives. Sign up here. A spokesperson for Novak told Reuters that no decision had yet been taken on the issue of rolling over export restrictions and the government said after the meeting that fuel producers had kept supply balanced. "There is a downward trend in fuel prices in the small wholesale segment. Agricultural producers are being supplied with the necessary fuel volumes," the government said. Russia imposed a partial ban on diesel exports at the end of September and extended a gasoline export ban until the end of the year. The ban on diesel exports also included marine fuel and other gas oils. It applied to resellers, but not to direct producers of those fuels. At the time, gasoline shortages were reported in a number of Russian regions, including in the far east and in Nizhny Novgorod, east of Moscow. No major disruption has since been reported. https://www.reuters.com/business/energy/russia-considers-extending-gasoline-diesel-exports-ban-until-february-state-2025-12-15/
2025-12-15 12:16
Dec 15 (Reuters) - The Trump administration is ramping up efforts to secure U.S. supply chains for critical minerals and semiconductors by converting federal grants for companies into equity stakes, aimed at reducing reliance on China. The administration has taken or discussed stakes in several companies as part of the shift to direct ownership from traditional subsidies. Sign up here. Following are the companies linked to the strategic investment push: ** Korea Zinc (010130.KS) , opens new tab Stake acquired: Around 10% Project: $7.4 billion smelter in Tennessee Details: Korea Zinc will build a $7.4 billion smelter in Tennessee through a joint venture with U.S. partners. The U.S. Department of War will hold a 40% stake in the JV, while the Commerce Department will provide $210 million in subsidies under the CHIPS Act. Korea Zinc will issue $1.9 billion in new shares to the JV and U.S. strategic investors, giving them about 10% of the company. The remaining $5.5 billion will come from $4.7 billion in U.S.-backed loans and other financing. Construction begins in 2026, with phased operations starting in 2029. Strategic Value: The project strengthens U.S. supply chains and reduces reliance on China, which dominates global critical mineral supply and recently restricted exports of antimony and germanium to the U.S. ** Trilogy Metals (TMQ.TO) , opens new tab Stake acquired: 10%, investment includes warrants to purchase an additional 7.5% Project: Upper Kobuk Mineral Projects (UKMP) in Alaska, a joint venture owned by Trilogy Metals and Australian miner South32 (S32.AX) , opens new tab. Details: The White House will invest about $35.6 million for the development of critical mineral resources at the UKMP, which is located in Alaska's Ambler mining district. Trump also signed an executive order directing his administration to permit an access road to the Ambler mining district. Strategic Value: Ambler mining district is a mineral-rich area with copper, zinc and lead deposits. ** Critical Metals , opens new tab(CRML.O) , opens new tab Stake under discussion: About 8% Project: Tanbreez rare earths deposit, Greenland Strategic value: Trump administration officials have discussed taking a stake in Critical Metals, four people familiar with the discussions told Reuters. A deal would give Washington a direct interest in the largest rare earths project in Greenland, the Arctic territory that Trump once suggested buying. ** Lithium Americas (LAC.TO) , opens new tab Stake acquired: 5% in parent company and 5% in Thacker Pass JV with General Motors (GM.N) , opens new tab Project: Thacker Pass lithium mine, Nevada Strategic value: The project is seen as a linchpin in building a domestic supply chain part of Washington's long-standing drive to boost U.S. production of lithium, a metal used to make batteries for electric vehicles and other electronics. ** MP Materials (MP.N) , opens new tab Stake acquired: About 15% Project: Mountain Pass rare earth mine, California Strategic value: MP operates the only U.S. rare earths mine and is working to boost domestic processing and magnet production. The U.S. Department of Defense (DoD) will become the largest shareholder in Las Vegas-based MP, making it Washington's most high-profile investment to date in the critical minerals sector. ** USA Rare Earth (USAR.O) , opens new tab Status: In discussions Details: CEO Barbara Humpton told CNBC that the company was in close talks with the White House while responding to a question about potential interest in striking a deal with the Trump administration. Strategic value: USA Rare Earth has been developing a mine in Sierra Blanca, Texas, and a neo magnet manufacturing facility in Stillwater, Oklahoma, which is expected to go commercial in the first half of 2026 ** Intel Corp (INTC.O) , opens new tab Stake acquired: 9.9% Strategic value: The investment strengthens U.S. supply chain security and supports Intel's plans to build and expand advanced manufacturing facilities domestically. https://www.reuters.com/business/autos-transportation/trump-administrations-investment-push-rare-earth-companies-chipmakers-2025-10-06/
2025-12-15 12:00
Goldman Sachs notes Asia was most net sold region last week Hedge funds sold tech stocks before Hang Seng, Nikkei indices fell Chinese equities net sold for four of last five weeks, Goldman Sachs notes LONDON, Dec 15 (Reuters) - Hedge funds sold Hong Kong and Japanese stocks last week, Goldman Sachs said in a note, just before the tech-heavy Hang Seng and Nikkei indices fell in the last two trading sessions on worries over over-inflated tech values. Japan's blue-chip Nikkei (.N225) , opens new tab share average dropped more than 1% on Monday as tech stocks tracked their Wall Street peers lower on lingering worries over stretched valuations and ahead of an expected Bank of Japan rate rise later this week. Sign up here. China (.CSI300) , opens new tab and Hong Kong (.HSI) , opens new tab stocks also slipped as a slew of lacklustre economic data and mounting default risks by property developer Vanke weighed on market sentiment. Hedge funds appeared to have anticipated the moves, according to data from a Goldman Sachs note to clients dated December 12 and seen by Reuters on Monday. Asia was by far the most net sold region last week, with both emerging and developed market stocks more sold than bought, the note said. Hedge funds dumped long positions in Hong Kong and added short bets in Japan, said Goldman's note. A long position expects an asset value to rise, whereas a short position wagers it will fall. Selling focused on technology and consumer stocks just before Friday afternoon's selloff with investors leaving technology for other sectors amid concerns about an AI bubble. The Philadelphia SE semiconductor index (.SOX) , opens new tab dropped more than 5% on Friday. JAPAN RATE BETS Some stocks in Japan benefited from the exodus from tech shares and hedge funds net bought industrial, financial and materials company equities, said Goldman Sachs. Japanese banking shares (.IBNKS.T) , opens new tab climbed 2% on Friday ahead of an expected rate increase by the Bank of Japan on Friday. Such bets were reinforced on Monday by the central bank's quarterly Tankan survey, which showed sentiment among big manufacturers rose to a four-year high. Higher interest rates boost returns from lending and investing. Elsewhere, hedge funds continued to sell Chinese equities, which had been net sold in four of the last five weeks and to a lesser extent stocks in India, said the bank. The speculators focused on stock sectors such as industrials and materials. https://www.reuters.com/sustainability/boards-policy-regulation/hedge-flow-hedge-funds-ditched-tech-stocks-japan-hong-kong-last-week-says-2025-12-15/
