2025-12-19 00:40
Cannabis companies face high borrowing costs Big banks remain cautious due to federal illegality of cannabis SAFER Banking Act could give legal certainty in cannabis banking Dec 18 (Reuters) - U.S. President Donald Trump's move to relax marijuana regulations could ease some burden for cannabis companies, but will likely keep doors to access capital from big banks closed, experts said. Cannabis companies, once in the spotlight during their boom, have limitations to access capital, often relying on smaller banks or alternative lenders, credit unions that come with higher borrowing costs. The executive order seeks a speedy that would ease federal restrictions on research that could lead to new medical marijuana products. Sign up here. While Trump's order that reclassifies cannabis as a controlled substance is good news for cannabis companies and removes red tape, including compliance costs, large lenders will remain on the sidelines unless it is federally legal, as lending could spark risks. "Rescheduling is great progress, but I do not expect it to open the lending floodgates for cannabis operators, or for it to be materially behavior-altering for larger banks," said Samantha Gleit, a partner at Feuerstein Kulick leading the firm's debt finance and corporate restructuring practices. "Until there is full federal legalization, lending and providing treasury services to cannabis companies will continue to be a banking hurdle, particularly for the larger institutions that need to maintain their FDIC ensured status." Even under a reclassification, marijuana would still be treated as a controlled substance on a federal level and its use subject to tight restrictions and criminal penalties. "For big banks, this isn’t the moment they ... start handing out term sheets. You might see some regional or tech-savvy banks start edging closer to the pot of gold, but not (the big banks)," said Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors. Most major American and Canadian banks declined comment. Some others referred questions to the American Bankers Association. The American Bankers Association, which represents major banks, said it would continue to call on Congress and the administration to pass the bipartisan SAFER Banking Act, which would give financial institutions the legal certainty they need to offer banking services to cannabis and cannabis-related businesses in the states where it has been legalized. “Because cannabis remains illegal under federal law, proceeds from its sale are still considered illicit, which carries significant risks for banks that want to serve the industry," a spokesperson said. For Ari Raptis, CEO of cannabis distributor Talaria Transportation, the news brings optimism but core challenges on accessing capital remain. “From a financial standpoint, this improves a lot of optics, but not access. Capital follows clarity and clarity still hasn't arrived yet,” Raptis said. https://www.reuters.com/legal/government/cannabis-companies-face-hurdles-accessing-big-banks-despite-reclassification-2025-12-19/
2025-12-19 00:40
Dec 18 (Reuters) - Russian strikes near Ukraine's Black Sea port of Odesa on Thursday killed a woman in her car, while a city district came under attack and suffered power and other utility cuts, officials said. Odesa regional Governor Oleh Kiper, writing on Telegram, said a Russian drone killed a woman crossing a bridge in her car southwest of Odesa. Her three children were injured in the incident. Sign up here. Kiper asked residents in the region suffering long power cuts to exhibit patience and stop blocking roads in protest, saying emergency crews were working round the clock to restore electricity supplies. In Odesa, the head of the city's military administration, Serhiy Lysak, said a Russian attack had hit infrastructure and triggered power, water and heat cuts to a "densely populated district". One person was injured and emergency crews were working to restore normal supplies. Ukraine's border authority said Russian attacks had halted transport along the route linking Odesa to the Danube River port of Reni. Border crossings to Moldova were also affected, it said. https://www.reuters.com/world/russian-shelling-near-odesa-kills-one-hits-power-supply-2025-12-18/
2025-12-19 00:37
Global stock index rises with Wall Street boosted by AI trade BOJ hikes 25 bps, signals further tightening ahead Japanese bond yields jump, Dollar gains on yen Oil settles higher as geopolitcal uncertainty continues NEW YORK/ LONDON Dec 19 (Reuters) - MSCI's global equities gauge advanced on Friday with technology leading Wall Street higher, while the yen weakened after the Bank of Japan raised interest rates to a three-decade high, as widely expected, and left the door open to more tightening. Oil prices rose as traders weighed the potential impact of a supply disruption from Venezuela. U.S. President Donald Trump told NBC News in an interview published on Friday he was leaving the possibility of war with the country on the table. Sign up here. Investors sold the yen once the BOJ delivered its highly anticipated rate hike, driving some profit-taking and taking the currency to levels where traders say officials may consider intervention to support it. Japan's 10-year government bond yield hit a 26-year peak and the Nikkei closed up 1%. (.N225) , opens new tab. In U.S. equities, technology shares were back in fashion as investors were encouraged by a strong financial outlook from Micron Technology (MU.O) , opens new tab on Wednesday, according to Michael James, equity sales trader, Rosenblatt Securities. Rosenblatt raised its Micron price target to $500 from $300 after the results. "The return to a more optimistic tone around the AI trade is certainly helping a number of things across the board. It was certainly helping the Nasdaq in a meaningful way yesterday and again today," said James. "We're not out of the woods, but it certainly feels a lot better today than it did most of the course of the last week," he added. On Wall Street the Dow Jones Industrial Average (.DJI) , opens new tab rose 183.04 points, or 0.38%, to 48,134.89, the S&P 500 (.SPX) , opens new tab rose 59.74 points, or 0.88%, to 6,834.50 and the Nasdaq Composite (.IXIC) , opens new tab rose 301.26 points, or 1.31%, to 23,307.62. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab rose 7.14 points, or 0.71%, to 1,008.32 on the day but for the week it was showing a slight decline. Earlier, the pan-European STOXX 600 (.STOXX) , opens new tab index finished up 0.37% for a record closing high. It added 1.6% for the week for its strongest gain since the week beginning November 24. On the U.S. data front, existing home sales rose marginally in November as economic uncertainty and still-elevated mortgage rates curbed demand. University of Michigan's survey of consumer sentiment came in lower than consensus estimates but above the November number. "The economy may be moving out of what appears to have been a mild soft patch in economic growth," said Gary Schlossberg, global strategist at Wells Fargo Investment Institute, referring to Friday's data and Thursday's consumer price inflation of 2.7% even as he cautioned that CPI may have been distorted by the 43-day government shutdown. "We could still be feeding off the CPI news yesterday. It's an important event at face value. We're a little skeptical just how much of an improvement in inflation we saw," said Schlossberg, but he added that "it looks like inflation may have peaked, at least for now. That has to be good news for the Fed and by extension markets." BOJ RAISES RATES, YEN SLIPS In currencies, the yen weakened sharply against the dollar and other major currencies as traders drove it towards levels that could trigger official buying, after the Bank of Japan raised rates to a 30-year high. Against the Japanese yen , the dollar strengthened 1.38% to 157.69. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, rose 0.27% to 98.70. The euro fell 0.08% to $1.1711. In fixed income markets, U.S. Treasury yields rose in line with global bond yields on Friday after the Bank of Japan raised interest rates, while investors continued to evaluate delayed economic releases and the direction of Fed policy. The yield on benchmark U.S. 10-year notes rose 3.3 basis points to 4.149%, from 4.116% late on Thursday while the 30-year bond yield rose 2.7 basis points to 4.8272%. The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, rose 2.6 basis points to 3.486%, from 3.46% late on Thursday. In energy markets, oil prices settled higher on the prospect of supply disruptions from a U.S. blockade of Venezuelan tankers, while the market waited for a Russia-Ukraine peace deal and interest rate decisions from central banks around the world. U.S. crude settled up 0.91%, or 51 cents, at $56.66 a barrel and Brent settled at $60.47 per barrel, up 1.09%, or 65 cents, on the day. In precious metals, silver soared to a record high, bolstered by investment demand and supply tightness, while gold eyed a weekly gain, buoyed by bets on Federal Reserve interest rate cuts. Spot silver rose 2.8% to $67.22 an ounce. Spot gold rose 0.16% to $4,339.03 an ounce. U.S. gold futures rose 0.33% to $4,354.00 an ounce. https://www.reuters.com/world/china/global-markets-global-markets-2025-12-19/
2025-12-18 23:55
Santos appoints 15-year veteran Harris as CFO CFO appointment follows Sherry Duhe's surprise October exit Appointment underscores Santos as Spence and Gallagher-led firm, says analyst Dec 19 (Reuters) - Santos (STO.AX) , opens new tab said on Friday it has appointed longtime executive Lachlan Harris as its chief financial officer, as the Australian gas producer navigates a transition period tied to its key Barossa and Pikka projects. The appointment follows the October exit of former CFO Sherry Duhe after just one year in the role. Sign up here. At the time, analysts said Duhe's exit left Santos without a clear succession plan, with Duhe widely viewed as a potential successor to chief executive Kevin Gallagher should he step down. Harris, a 15-year Santos veteran, has previously served as treasurer and as deputy CFO. Gallagher said Harris has a "proven track record of driving major initiatives" at the company, citing his leadership of Santos' $1 billion 10-year bond offering, which he said was significantly oversubscribed. Gallagher had mentioned in his remarks in the firm's third-quarter production report in October that "together, Barossa LNG and Pikka phase 1 are expected to lift Santos' production compared to 2024 levels, by around 30 percent by 2027." Shares of Santos were down as much as 0.9% at A$6.045 by 2321 GMT. "Harris has a relatively limited profile with investors," said John Lockton, head of investment strategy at MST Financial, adding that Harris had been "overlooked" for the CFO role when Duhe joined in September 2024 as Santos' first externally appointed CFO. Lockton said the appointment underscored that Santos "remained a chairman Keith Spence and CEO Gallagher-led organisation", and that the board had reverted to an internal candidate. Back in October, Duhe said she had already resigned by the time Spence told her that her services were no longer required. https://www.reuters.com/business/energy/australias-santos-names-insider-lachlan-harris-finance-boss-2025-12-18/
2025-12-18 23:09
Dec 18 (Reuters) - Shares of some cannabis firms fell between 3% and 12% at Thursday's close, erasing previous gains from the session, after U.S. President Donald Trump signed an executive order recommending the loosening of federal regulations on marijuana. The decision to reclassify cannabis as a less dangerous drug — which would imply the biggest shift in pot regulation since 1970 — would not legalize cannabis, but it would ease the operating environment for companies by improving access to capital, reducing tax burden and accelerating research and development. Sign up here. At least two analysts said expectations that a mandate for cannabis banking would be included in the order — and then was not — could have caused some disappointment among investors. "Each time that there has been a step forward in the direction of legalization — allowing growers to go public, legalization in some states — there has been a brief boom in cannabis stocks followed by a slide," said Art Hogan, chief market strategist at B. Riley Wealth. For now, Hogan said that cannabis stocks remain a speculative play and "likely will continue to do so." U.S.-listed shares of Tilray dropped 4.2%, Aurora Cannabis (ACB.TO) , opens new tab fell 3.4%, SNDL nearly 1.5% and Canopy Growth (WEED.TO) , opens new tab fell nearly 12% at close. Those stocks rose between 6% and 12% in afternoon trading before they reversed course. "The decision to reclassify cannabis in the United States marks an important step toward modernizing federal cannabis policy and advancing the normalization of a regulated market," a spokesperson for Canopy Growth told Reuters. Trump's order directs his attorney general to quickly move ahead with reclassifying marijuana, according to senior administration officials, a process that could lead to the psychoactive plant being listed alongside common painkillers, ketamine and testosterone as a less dangerous drug. "Given that the space is heavily retail-driven, I believe that some retail investors were expecting cannabis to be immediately and unilaterally rescheduled by the President, whereas the executive order actually directs the AG to finalize rescheduling," said ATB Capital Markets analyst Frederico Gomes. A reclassification would move marijuana from Schedule I, which includes substances like heroin, ecstasy and peyote that have no accepted medical use, to Schedule III, which covers substances with a moderate-to-low risk of physical or psychological dependence. With this move, cannabis firms would no longer be subject to Section 280E, a provision of the U.S. federal tax law that bars businesses dealing in Schedule I and II controlled substances from claiming tax credits and deductions for business expenses. The Drug Enforcement Administration has to review the recommendation to list marijuana as a Schedule III drug under the U.S. Controlled Substances Act and will decide on the reclassification. https://www.reuters.com/business/healthcare-pharmaceuticals/cannabis-stocks-rise-ahead-potential-trump-order-ease-marijuana-restrictions-2025-12-18/
2025-12-18 22:55
Former federal workers run for Congress as Democrats Candidates highlight government service and outsider status Some newly minted candidates face a steep learning curve CAPE MAY, New Jersey, Dec 18 (Reuters) - It was Megan O'Rourke's dream job. As a top climate scientist for the U.S. Department of Agriculture, she oversaw grants for research projects aimed at making food production healthier and more sustainable. But when President Donald Trump's administration began targeting funding programs associated with climate change, O'Rourke decided she could no longer work for the government and remain true to her moral compass – or the oath she swore to serve the country, not just the president. Sign up here. A few months after quitting her job, she's fighting back against Trump by running for Congress as a Democrat in New Jersey's 7th district, one of the few competitive U.S. House races likely to determine control of the chamber in 2026. "I literally sat down a year ago with my husband, and we were plotting out our retirement in 12 years," said O'Rourke, 46. "Then one day, I went to him early this spring: 'Honey, what if I blow up our life and quit my job?'" More than a half-dozen federal employees from departments including Justice, Veterans Affairs, State and Agriculture who quit or lost their jobs after the Trump administration swung a wrecking ball through their agencies are running for Congress as Democrats. Each has put their record of public service, and their experience during the opening months of Trump's second term, at the center of their campaign. Democrats need to flip three Republican seats in next year's midterm elections to win a House majority. That would enable them to stymie much of Trump's legislative agenda and investigate his administration. FROM FEDERAL SERVICE TO POLITICAL BATTLEGROUND Ryan Crosswell, a 45-year-old former prosecutor, resigned over the Justice Department's controversial dismissal of corruption charges against New York City Mayor Eric Adams. John Sullivan, 41, ended his nearly 17-year FBI career in protest of what he viewed as the weaponization of the bureau. And Zach Dembo, 40, quit his job as an assistant U.S. attorney out of fear he might be forced to violate his oath to uphold the law. Other candidates who left the government just before Trump took office have also used their campaigns to argue that the president's assault on the federal bureaucracy is hurting America at home and abroad. Bayly Winder, 34, a former official at the U.S. Agency for International Development, carries his old business card on the campaign trail as a reminder of the damage he says Trump caused by bulldozing the agency. None of the five candidates Reuters interviewed is a sure bet. While O'Rourke, Sullivan and Crosswell are running against vulnerable Republicans in swing districts, each must first outlast a field of Democrats seeking the party's nomination. Dembo and Winder, meanwhile, are campaigning in Republican-leaning districts that have proven elusive for Democrats in past cycles. In a statement, Mike Marinella, a spokesman for the national Republican party's congressional campaign arm, sought to tie the candidates to former Democratic President Joe Biden's administration, even though all five also worked for the government during Trump's first term. "We will ensure voters see them for exactly what they are: willing accomplices to a failed presidency," Marinella said. The House candidates are among a larger cohort of former government workers running for everything from state legislature to city council. Many resigned or were fired under pressure from Elon Musk's Department of Government Efficiency, part of a broader downsizing that has reduced the government's 2.4-million-strong workforce by 317,000 jobs, according to Trump officials. Some have already been elected, like Erika Evans, a federal prosecutor who resigned in protest of Trump's attempt to end birthright citizenship and won Seattle's city attorney election in November. Trump has defended the reductions as necessary for a bloated bureaucracy, while Democrats have decried the layoffs as haphazard and chaotic. The White House did not respond to a request for comment for this story. DEMOCRATS SEE RECRUITMENT OPPORTUNITY Democratic activists say former civil servants possess natural advantages as candidates. "They understand what works and what doesn't work," said A'shanti Gholar, the president and chief executive officer of Emerge, which recruits Democratic women to run for office. Her organization has held two dozen training sessions designed for former federal workers, drawing hundreds of signups. Evans, the Seattle city attorney-elect, was a 2025 graduate of Emerge's standard six-month training program. Run for Something, another Democratic training group, had more than 600 former government workers attend an open call this spring, according to founder Amanda Litman. "If you're the kind of person who went to work for the federal government, you did it out of a love of service, or love for your community, or patriotism – you didn't do it for the money," she said. "That is a really compelling starting point for a campaign." AN ABRUPT END O'Rourke, Crosswell, Sullivan and Dembo said that while they disagreed with some of Trump's policies during his first administration, they viewed that as an inescapable part of the job. But they said it soon became clear to them that Trump's second term would be very different, with an unconstrained president showing scant deference to traditional political norms. For Sullivan, the realization began hours after Trump's inauguration, when the president granted clemency to more than 1,500 defendants convicted or charged in the January 6, 2021, storming of the U.S. Capitol. Sullivan, whose FBI team had analyzed video footage to identify participants in the attack, was worried he might be targeted, as Trump officials began purging the Justice Department of people who investigated January 6. One of the highest-ranking openly gay officials at the FBI, Sullivan was also involved with the bureau's LGBTQ employee resource group, FBI Pride, which was disbanded under Trump. And he grew increasingly concerned that Trump was transforming the FBI into a nakedly political entity. "I just knew I couldn't stay there and be a part of that," Sullivan said. The Trump administration has asserted that it is restoring integrity to the FBI after the Biden administration "weaponized" it against Trump. Crosswell's career came to an abrupt end in the span of a workweek. On Monday, February 10, news broke that the Justice Department intended to dismiss corruption charges against Mayor Adams. The decision was widely understood to be a quid pro quo in exchange for Adams' cooperation on immigration, and the federal judge who would eventually grant the motion said it "smacks of a bargain." Both Adams, who maintained his innocence, and Trump officials denied any deal, saying instead that they were rectifying a miscarriage of justice. Over the ensuing week, the department suffered a cascade of resignations from prosecutors, including Crosswell. He interviewed at law firms but decided to run for Congress after concluding that he could not sit back while Trump ran roughshod over the government. "You're either fighting for what you know is right, or you are enabling what you know is wrong," said Crosswell, a former Marine. Watching from Kentucky, where he was working as a prosecutor, Dembo - also a veteran - came to a similar decision. "I never questioned that the oath that I swore to the Constitution was still being honored – up until the second Trump administration," said Dembo, who served in the Navy. The former workers have touted their outsider status – and their experience in government – while campaigning. "I've never been in politics before, but I have been in public service," Winder told attendees during a recent campaign stop. The novice candidates also face a steep electoral learning curve. As federal employees, they were legally barred from most overt political activity. Dembo has compared notes in a group chat with other former workers who are running for office. "So many of these people I've talked to never once thought about running," he said. "But either because they've been fired or forced out, these folks who have been non-political their entire lives...are now running to oppose the administration." (This story has been corrected to state that all five candidates, not all except Winder, worked for the government during Trump's first term in paragraph 12, and to clarify the training program Evans attended in paragraph 21) https://www.reuters.com/world/us/they-quit-government-protest-trump-now-they-are-running-congress-stop-him-2025-12-18/
