2025-12-19 20:35

Currencies, stocks up 0.2% US-Venezuela tensions loom over region Colombia's central bank holds rates steady Chilean equities lead gains Dec 19 (Reuters) - Latin American assets edged higher on Friday, led by gains in Chilean equities aided by copper prices, while investors assessed geopolitical tensions and Colombia's central bank kept rates steady as widely expected. The Colombian peso rose 0.8% against the dollar. The central bank voted to keep rates on hold at 9.25% at its last meeting of the year, amid concerns over inflationary pressure. Sign up here. The Colombian stock benchmark (.COLCAP) , opens new tab inched 0.6% higher, but was on track for its biggest weekly loss since May. The Latin American nation conducted a direct sale of local TES bonds worth 23 trillion pesos ($5.94 billion) with a foreign investor, the finance ministry said. Meanwhile, Colombia's government will present an economic emergency decree on Friday aimed at raising about 16 trillion pesos ($4.13 billion) to finance some of the spending needs in the 2026 budget, the finance minister said. Both the MSCI index tracking regional currencies (.MILA00000CUS) , opens new tab and the corresponding equities gauge (.MILA00000PUS) , opens new tab added 0.2% each. The moves cap a volatile week for markets, which were buffeted by a heavy slate of monetary policy decisions and domestic political factors. Still, EM assets were set to end the year having outperformed many domestic markets, aided by a weaker dollar and diversification from the U.S. "We believe a weaker USD, coupled with a renewed rate-cutting cycle by the Fed, should serve as powerful tailwinds for EM fixed income, supporting flows back into the asset class after three years of record outflows," said Gorky Urquieta, co-head of the emerging markets debt team at Neuberger Berman. Tensions between the U.S. and Venezuela loom over the region. Regional heavyweights Brazil and Mexico have called for restraint, but their stance risks stoking Washington's ire. POLITICS, ECONOMIC DATA DRIVE SENTIMENT In Brazil, domestic political risks have come to the fore in recent weeks. President Luiz Inacio Lula da Silva said on Thursday he was "sensing" that interest rates could start to come down soon, but central bank chief Gabriel Galipolo said policymakers would stick to a data-dependent approach. The real dipped 0.1% on Friday. The Bovespa index (.BVSP) , opens new tab gained 0.5% on Friday, after data showed that foreign direct investment inflows beat expectations in November. Chilean stocks jumped 1.1%, thanks in part to the price of copper rallying to a near record high. The metal, widely used in power, construction and manufacturing, is Chile's top export. "Sentiment on Argentinian assets remains constructive, while Chile continues to be the preferred Andean market. However, copper prices remain the main risk for the region," analysts at BofA Global Research wrote in a note. Peru's central bank slightly raised its economic growth forecasts for 2026, taking into account the likely impacts of the country's upcoming presidential elections in April next year. Equities (.MXNUAMPESCPGPE) , opens new tab gained 1%. Meanwhile, Mexico's stock benchmark (.MXX) , opens new tab rose 0.5% while the local peso was little unchanged. The central bank lowered interest rates by 25 basis points on Thursday. Key Latin American stock indexes and currencies at 1946 GMT: https://www.reuters.com/world/americas/colombian-peso-leads-gains-latam-currencies-ahead-central-bank-decision-2025-12-19/

2025-12-19 20:29

Filing opens 30-day window for regulatory review Merger faces opposition from competitors citing reduced choices Trump publicly supports merger, aligning with his vision for US infrastructure NEW YORK, Dec 19 (Reuters) - Railroad operators Union Pacific (UNP.N) , opens new tab and Norfolk Southern (NSC.N) , opens new tab on Friday filed a nearly 7,000‑page merger application with the U.S. Surface Transportation Board (STB), drawing fresh scrutiny from rivals on their plan to create the nation’s first coast‑to‑coast freight railroad. If approved by regulators, the merger would reshape how goods move across the United States, leaving the remaining two top U.S.-based freight railroads to compete with a transcontinental giant. Sign up here. Friday's filing triggers a 30‑day period in which the railroad regulator can seek more information or propose initial remedies as it reviews the deal. It also opens a formal window for stakeholders to respond to the $85 billion transaction, including shippers, labor unions, consumer advocates and local officials, who can support, oppose or seek conditions as the STB evaluates its competitive and public‑interest impact. Union Pacific's merger proposal in July surprised analysts and industry executives, who said such an initiative would be unlikely under earlier administrations because of tougher antitrust scrutiny. The proposal received public support from President Donald Trump. Union Pacific was among the corporations that contributed to Trump’s White House ballroom project, public disclosures show. UP Chief Executive Jim Vena and Trump have said creating a single East‑West railroad aligns with the president’s vision to “make America great again,” after a meeting between the two at the Oval Office in September. OPPOSITION FROM COMPETITORS The proposal drew strong opposition from competitors in an already concentrated industry. Four Class I freight railroads dominate the U.S. market, with Union Pacific and BNSF controlling most western routes and Norfolk Southern and CSX covering the East. UP and NS argue the combination would eliminate the East‑West handoff barrier — especially the costly, delay‑prone Chicago interchanges — by providing single‑line service. They say this would reduce handoffs, improve transit times and help rail compete more effectively with long‑haul trucking. Union Pacific's Vena said on Friday he is confident the deal will get regulatory approval. “If we stand still, we are going to get left behind. I'm not into that. The benefits of this transaction are undeniable,” Vena said. BNSF, owned by billionaire Warren Buffett's Berkshire Hathaway, said the merger will reduce shipper choices and lead to higher rates. BNSF CEO Katie Farmer said the company is still reviewing the filing and will have more to say soon, but added that so far it "does not change BNSF’s opposition to the proposed merger." "The transaction poses a significant threat to the U.S. economy and the American consumer through its long-term competitive harms," she said in a note. Canadian Pacific Kansas City (CPKC), one of the two large Canadian railroads operating in the United States, echoed BNSF’s concerns, saying the merger would pose extraordinary and far‑reaching risks to customers. The company said it will be active in the review and submit comments to STB. "Approval of this merger is not inevitable," CPKC said in a note. CSX, which earlier this year tried and failed to negotiate a merger, is reviewing the filing and will participate in the STB process to ensure it remains well positioned to compete, the company said. But the future of rail consolidation is still fluid, said Anthony Hatch, an independent analyst. CSX, BNSF and Canadian Pacific could eventually pair up in response to the UP–NS bid, depending on what competitive concessions, market access or operating advantages the STB ultimately grants, he said. “If these railroads get enough market access through the STB process, they may decide they can remain independent — and if they don’t, they risk being outmatched unless they merge,” he said. "It is too soon to know." The UP–NS transaction is the first major railroad merger to be reviewed under the stricter STB framework adopted in 2001, which requires railroads to prove a merger will enhance competition — not just preserve it — and show clear public‑interest benefits, Hatch said. https://www.reuters.com/legal/transactional/union-pacific-kicks-off-regulatory-review-85-bln-coasttocoast-rail-merger-2025-12-19/

2025-12-19 20:05

Chile comptroller approves Codelco-SQM lithium deal "Unprecedented" audit launched after parliament complaints SANTIAGO, Dec 19 (Reuters) - Chile's comptroller on Friday approved, with some guidelines, an agreement between state copper giant Codelco (COBRE.UL) and local miner SQM (SQMA.SN) , opens new tab to operate a joint lithium venture in the Atacama salt flat. The resolution comes hours after the top regulator announced it would launch an "unprecedented audit in response to complaints from members of parliament regarding the Codelco-SQM Agreement." Sign up here. The regulator said that it was prevented from ruling on most of the claims due to previous court rulings, but listed some guidelines in its official approval, including that Codelco must maintain a stake of more than 50% in the joint venture. The companies had requested the comptroller's approval as the final step needed to finalize the agreement after several other national and international regulators cleared the deal. Codelco and SQM want to create a joint venture to produce lithium in the Atacama Salt Flat, as part of President Gabriel Boric's plan to expand state control over the industry and increase production. Legislators have questioned why the agreement was reached in direct negotiations rather than a public bidding process. They also questioned why Codelco picked SQM, which has pending lawsuits with the tax authorities, among other things. SQM declined to comment on the audit. In a statement, Codelco said it would "approach the process with complete transparency and professionalism" and that the audit would help "reaffirm the integrity" of the agreement with SQM. "The audit will confirm the integrity, rigor, and soundness of the process, especially including the hiring and work carried out by Morgan Stanley, the financial advisor who has played a fundamental role in structuring the partnership," the statement said. Codelco said it was still waiting for the Comptroller's Office to approve the lease agreements for the properties in the Salt Flats between the state development agency Corfo and its subsidiary, a process that began in September. China's Tianqi (002466.SZ) , opens new tab, a major investor in SQM, has sought to block, so far unsuccessfully, the deal in Chilean courts arguing it should have required shareholders' approval. https://www.reuters.com/business/energy/chilean-regulator-launch-audit-codelco-sqm-lithium-deal-2025-12-19/

2025-12-19 19:37

Farmers face low crop prices, high input costs, and trade war impacts USDA aware aid falls short, cites funding limitations Farmers should expect payments next February WASHINGTON, Dec 19 (Reuters) - The U.S. Department of Agriculture is not considering issuing more farm aid beyond its recently announced $12 billion package meant to help farmers weather poor economic conditions, said Richard Fordyce, the agency's under secretary for farm production and conservation. Farmers are facing low crop prices, high costs of agricultural inputs like fertilizer and the impacts of President Donald Trump's trade war, which has shrunk exports of some crops. While farmers welcomed news of the $12 billion package earlier this month, they warned that it would not make them whole or rescue the sagging farm economy. Sign up here. Farm losses this year could reach $44 billion, according to an estimate from North Dakota State University. Fordyce said the USDA was aware the aid would fall short, but is not considering further assistance in part due to funding limitations. "At this point, we feel like we’ve kind of done what we can do. I don’t know what next year will bring, but at this point, we’re where we’re going to be," Fordyce said. Trump administration officials have previously said the aid should serve as a stopgap until new farm supports from Trump's tax and spending bill take effect, like higher reference prices for crops. The aid program allocates $11 billion to row crops like corn, soybeans and wheat, and $1 billion to fruits, vegetables and other "specialty crops." Fordyce said the agency has still not finalized how that $1 billion will be issued but that it is soliciting data and input from farmers. Agriculture Secretary Brooke Rollins previously said aid payments will be disbursed by February 28. https://www.reuters.com/business/us-farm-agency-unlikely-issue-more-farm-aid-says-official-2025-12-19/

2025-12-19 19:35

Trump's 'blockade' aims to halt sanctioned oil tankers to Venezuela Hyperion's sanctions profile differs from seized Skipper tanker Venezuela condemns US actions as violating international law HOUSTON, Dec 19 (Reuters) - A tanker subject to U.S. sanctions carrying some 300,000 barrels of naphtha from Russia entered Venezuelan waters late on Thursday, while another began redirecting course in the Atlantic Ocean, ship tracking data showed, a reflection of diverging last-minute decisions by ship owners after President Donald Trump ordered a "blockade" of oil tankers under sanctions bound for the OPEC country earlier this week. The move ramped up pressure on Venezuelan president Nicolas Maduro by targeting the country's main source of income and followed the seizure by the U.S. of an oil tanker off the coast of Venezuela earlier in December. Sign up here. Vessels that were not subject to sanctions began setting sail on Wednesday from Venezuelan waters after a week's pause, helping drain the country's mounting crude stocks. Gambia-flagged medium tanker Hyperion docked on Friday at Amuay Bay on Venezuela's western coast, according to LSEG ship tracking data. It loaded near Murmansk in Russia in late November. Under U.S. sanctions related to Russia, the ship has a different sanctions profile than Skipper, the tanker that was seized by the U.S. on December 10. The U.S. can only seize vessels outside of its jurisdiction, or vessels that aren't heading to or from the country, if Washington has placed them under sanctions for links to groups it designates as terrorist, said David Tannenbaum, a director at consulting firm Blackstone Compliance Services that specializes in sanctions and anti-money laundering compliance. Skipper, formerly called the Adisa, was under sanctions for what the U.S. says was involvement in Iranian oil trading that generated revenue for Iranian groups it has designated as foreign terrorist organizations. With the Hyperion, though, sanctions were imposed to reduce Russian revenues from energy because of its war with Ukraine. "The Hyperion doesn't have known ties to terrorism, and therefore unless they can prove it's subject to the jurisdiction of the U.S., Washington can't grab it extraterritorially," said Tannenbaum, who previously worked with the U.S. Treasury's Office of Foreign Assets Control that administers and enforces economic and trade sanctions. REDIRECTS AND U-TURNS The Angola-flagged Agate, another medium tanker under sanctions that loaded in Russia and had been sailing toward the Caribbean, was seen redirecting on Friday, according to LSEG ship tracking. The vessel was pointing towards Africa, but had not yet signaled a new destination. Oman-flagged Garnet, also under sanctions and loaded in Russia, continued on its track, signaling the Caribbean as its destination on Friday. Benin-flagged tanker Boltaris, under sanctions and carrying some 300,000 barrels of Russian naphtha bound for Venezuela, made a U-turn earlier this month and was heading for Europe without having discharged, according to LSEG vessel monitoring data. Two very large crude carriers not subject to sanctions set sail for China on Thursday from Venezuela, according to sources familiar with Venezuela's oil export operations, marking only the second and third tankers unrelated to Chevron (CVX.N) , opens new tab to depart the country since the U.S. seized Skipper. The American oil major, which has continued to ship Venezuelan crude under a U.S. authorization, exported a crude cargo on Thursday bound for the U.S., LSEG data showed. Secretary of State Marco Rubio on Friday said the U.S. was not concerned about the four vessels that sailed from Venezuela on Thursday, as those were not ships under sanctions. "Sanctioned boats, we have the capabilities necessary to enforce our laws. We'll have a judicial order, we'll execute on those orders and there's nothing that will impede us from being able to do that," Rubio said. Venezuela's government called Trump's blockade a "grotesque threat" in a statement on Tuesday, saying it violates international law, free commerce and the right of free navigation. https://www.reuters.com/business/energy/sanctioned-naphtha-tanker-russia-enters-venezuelan-waters-others-dither-ship-2025-12-19/

2025-12-19 18:41

CHICAGO, Dec 19 (Reuters) - The U.S. Department of Agriculture on Friday revised its weekly export sales report release schedule after U.S. President Donald Trump ordered all executive departments and agencies of the federal government to be closed and their employees excused from duty on the day before and the day following Christmas Day. The agency has been releasing export sales data that was delayed due to the 43-day U.S. government shutdown in October and November twice a week since the government reopened. The agency expects to resume its normal release schedule in early January once all the backlogged reports are issued. Sign up here. Exporters are required by law to report sales of U.S. agricultural commodities to the USDA's Foreign Agricultural Service, which reports weekly export sales each Thursday at 7:30 a.m. central time. The reports are closely watched by grain and livestock traders. The USDA set the following dates for the release of backlogged weekly export sales reports: https://www.reuters.com/world/us/usda-updates-release-schedule-export-sales-reports-suspended-by-shutdown-2025-12-19/