2025-12-18 11:32

TSX ends up 0.6% at 31,440.85 Industrials and financials both add 0.9% Energy declines 1.5% Curaleaf tumbles 32% Dec 18 (Reuters) - Canada's main stock index rose on Thursday as investors cheered softer-than-expected U.S. inflation data and recent positive signs on the domestic economy. The S&P/TSX Composite index (.GSPTSE) , opens new tab ended up 190.83 points, or 0.6%, at 31,440.85 after four straight days of declines, with the market moving back in reach of the record closing high it posted last Thursday. Sign up here. "Overall, it seems like it's a pretty good situation in Canada," said Kevin Headland, co-chief investment strategist at Manulife Investments. "The Canadian economy is probably doing better than many expected. We're seeing inflation right around target. The Bank of Canada is on pause right now. Sentiment is pretty strong." Canadian retail sales data, due on Friday, could offer additional clues on the state of the domestic economy. Economists expect a flat month-over-month reading after a decline of 0.7% in September. Wall Street's main indexes also closed higher as U.S. consumer prices increased less than expected in November, feeding expectations for Federal Reserve interest rate cuts. Cyclical sectors were among the biggest gainers on the TSX, with industrials and heavily weighted financials both adding 0.9% and consumer discretionary ending 1% higher. Canada's financial regulator said it was maintaining the amount of additional capital the country's largest lenders must hold, saying the big six banks are resilient in a changing risk environment. Energy was a drag, falling 1.5%. The price of oil settled 0.4% higher $56.15 a barrel as investors assessed the likelihood of further U.S. sanctions against Russia and the supply risks posed by a blockade of Venezuelan oil tankers. U.S. President Donald Trump was set to sign an order recommending the loosening of federal regulations on marijuana, according to senior administration officials, a move that could further reverse decades of tough-on-weed policy. Still, shares of cannabis firm Curaleaf Holdings Inc (CURA.TO) , opens new tab dropped 32%, giving back much of its recent sharp gains. https://www.reuters.com/business/tsx-futures-dip-ahead-us-inflation-data-2025-12-18/

2025-12-18 11:17

Trump's administration eases crypto oversight, boosting industry in 2025 Crypto market structure legislation stalled in Senate, causing uncertainty Industry expecting SEC "innovation exemption" in early 2026 Dec 18 (Reuters) - After celebrating Donald Trump's second presidential term by swilling cocktails and partying to Snoop Dogg at a pre-inauguration event in January, the crypto industry went on to notch major legislative and regulatory victories this year. But the party may not continue into 2026. Sign up here. Among the industry's biggest wins under Trump's crypto-friendly second administration were the Securities and Exchange Commission's swift move to rescind stringent crypto accounting guidance and dismiss Biden-era lawsuits against Coinbase (COIN.O) , opens new tab, Binance and others, as well as the passage of a landmark law creating federal rules for dollar-pegged crypto tokens. A top bank regulator also eased rules on banks' crypto dealings and conditionally approved bank licenses for crypto firms. Along with Trump's creation of a bitcoin stockpile and the SEC's approval of a raft of new crypto products, the changes together helped propel bitcoin to new peaks this year and pave the way for wider crypto adoption, sparking warnings from critics over potential investor and systemic risks. But crypto market structure legislation and carve-outs from SEC rules that should fix core, longstanding problems for the industry are yet to come, threatening to sap the industry's celebratory mood, according to multiple industry executives, some of whom spoke at a Reuters NEXT event earlier this month. "This year's been a good year for crypto ... notwithstanding that there's a lot of work left to be done," said Miller Whitehouse-Levine, CEO of the Solana Policy Institute, which advocates for policies to advance blockchain networks, speaking at Reuters NEXT. CRYPTO PRESIDENT Trump courted industry cash pledging to be a "crypto president," and his family's own crypto ventures have helped to propel the sector into the mainstream, say executives. Just days into his presidency, the SEC swiftly ended a years-long crackdown during which it sued dozens of crypto companies it alleged should have registered with the agency. The industry said those lawsuits were unfair because most crypto tokens more closely resemble commodities than securities. Aiming to get that position enshrined in law, crypto companies and executives donated more than $245 million in the 2024 election cycle to promote pro-crypto candidates including Trump, according to Federal Election Commission data. The industry inched closer to that goal in July when the House of Representatives passed a bill that would, among other things, define when tokens are securities, commodities or otherwise, giving the industry long-hoped-for legal clarity. But that has stalled in the Senate, with lawmakers divided over provisions on anti-money-laundering and requirements for decentralized finance platforms, which allow crypto users to buy and sell tokens without an intermediary, according to three sources familiar with discussions. "The big elephant in the room is that this industry has spent millions of dollars trying to get legislation across the line," but it is uncertain that it will score that key victory, said Sheila Warren, CEO of the tech-focused nonprofit Project Liberty Institute, who spoke at Reuters NEXT. With Congress already pivoting to focus on the 2026 midterm elections, in which the Democrats could take the House, that bill may not make it into law, said lobbyists. That would leave crypto firms to rely on regulatory guidance that could be overturned under a hostile future administration, potentially exposing companies to legal challenges or forcing them to curtail their U.S. businesses. Long-term, the industry cannot rely on pro-crypto administrations, said David Mercer, CEO of LMAX Group, which operates a crypto exchange. "We need the market structure bill." A spokesperson for Tim Scott, the chair of the Senate Banking Committee which is co-writing the Senate's version of the bill, said the committee is negotiating and "looks forward" to advancing the legislation in "early 2026." REGULATION FIXES In the meantime, crypto firms are turning their attention to regulatory fixes, especially an SEC "innovation exemption." Trump's SEC chair, Paul Atkins, has said the framework, which he expects to unveil next year, will allow crypto companies to immediately launch new business models, but it is unclear how broad in scope it will be. Mercer said that exemption could give projects, such as token issuers, "room to breathe" without fearing SEC prosecution. The SEC did not provide comment. Crypto companies also expect that increased coordination between the SEC and the Commodity Futures Trading Commission will streamline oversight across crypto products. That should get under way soon with Trump's CFTC chair nominee, Michael Selig, who is currently an adviser to Atkins, poised to be confirmed by the Senate. "It is making an impact," said Les Borsai, co-founder of Wave Digital Assets, who attended the industry's first-ever crypto pre-inauguration Washington ball in January, referring to the policy and personnel changes. With increasing clarity, he added, institutional investors should become "much more comfortable entering the space." https://www.reuters.com/sustainability/boards-policy-regulation/us-crypto-industry-cheers-2025-wins-party-may-fizzle-next-year-2025-12-18/

2025-12-18 11:15

NEW DELHI, Dec 18 (Reuters) - India aims to shield sugarcane farmers from income losses by managing surplus supplies through exports and diverting more sugar for ethanol production, a senior government official said on Thursday. Higher exports from the world's second-largest sugar producer could pressure benchmark New York and London futures , , which are hovering near five-year lows. Sign up here. "The surplus is going to hurt the farmers, which we cannot afford to do. So, in their interest, and also in the interest of all the stakeholders, you need to ensure that the surplus stocks are contained," India's food secretary Sanjeev Chopra told reporters. The government will try to contain the sugar surplus through all possible measures, he said. India's sugar production in the 2025/26 marketing year, which began on October 1, is projected to rise 18% to 30.9 million metric tons, even after diverting 3.4 million tons for ethanol production, Chopra said. Domestic demand in the world's largest sugar consumer comes up to around 29 million tonnes annually. With output set to exceed consumption, New Delhi last month approved exports of 1.5 million tons in the current season. India was the world's second-largest sugar exporter in the five years to 2022/23, with shipments averaging 6.8 million tons annually. But a drought led the government to ban sugar exports in 2023/24, and it allowed only 1 million tons to be shipped overseas last year. The sugar industry expects that by mid-January, when a glut in supplies is anticipated, prices will gradually decline, posing challenges for the sector, Chopra said. "We have taken that into account. In the next month or so we will come out with certain decisions, which would assist the industry and ensure the timely payment to farmers," he said. Sugar prices have already begun to fall, down nearly 4% since the start of the marketing year on October 1. Raising the floor price for sugar sales in India's domestic market is another measure that is being considered, the food secretary said. https://www.reuters.com/world/india/india-tackle-sugar-surplus-with-higher-exports-ethanol-diversion-2025-12-18/

2025-12-18 08:01

Lukoil exits Ghasha project, hands ADNOC 10% stake Heavy demand from Asian lenders, including Chinese banks First gas production expected before decade's end DUBAI, Dec 18 - Abu Dhabi National Oil Company has secured $11 billion in structured financing to monetise future gas production from its Hail and Ghasha development, the state company said on Thursday, after Russia's Lukoil exited the project. The deal, signed with partners Eni (ENI.MI) , opens new tab and PTTEP (PTTEP.BK) , opens new tab, involves 20 global and regional banks. It uses a "pre-export finance" model backed by future gas throughput, providing upfront cash years before first production, which is expected by the end of the decade. Sign up here. The transaction is the latest move in ADNOC’s strategy to leverage its balance sheet and fund a transition into a global energy major. The company has previously utilised lease-leaseback deals for infrastructure and listed six subsidiaries to raise billions of dollars. It also set up XRG, an international investment arm that has swelled to more than $150 billion in assets, including Germany's Covestro. LUKOIL EXITS GHASHA Lukoil, which doubled its stake in Ghasha to 10% earlier this year, exited the concession in November, an ADNOC spokesperson told Reuters. The spokesperson said Lukoil transferred its stake to ADNOC following the sanctions but declined to provide further details. The move follows Lukoil’s efforts to divest its foreign operations, crippled by U.S. sanctions imposed in October aimed at pressuring Russia to end its war in Ukraine. "It's the first-ever greenfield gas-based pre-export finance," a source close to the deal said, adding it allows ADNOC to lower the equity contribution and improve returns. The non-recourse financing includes 11 local and regional banks, seven Asian banks, and three Western lenders, including Citi, Bank of China and ICBC. "It's probably the largest participation from Chinese banks in a pre-export finance facility in the Middle East ever," the source said, adding ADNOC secured attractive rates. Chinese banks lent over a third of the financing for Saudi Aramco's Jafurah, potentially the biggest shale gas project outside of the U.S., which aims to reach 2 billion standard cubic feet per day of gas by 2030. ADNOC CEO Sultan Al Jaber, in a statement, said Hail and Ghasha "is an important contributor to ADNOC’s gas strategy and is on track to generate significant value." It aims to produce 1.8 bcfd of gas with net-zero emissions. https://www.reuters.com/business/energy/adnoc-lands-11-billion-financing-future-gas-output-2025-12-18/

2025-12-18 07:54

BoE cuts rates to 3.75% in tight 5-4 vote Governor Bailey supports rate cut, shifting MPC balance Sterling rises, bond yields increase post-BoE decision LONDON, Dec 18 (Reuters) - The British pound reversed an earlier fall on Thursday even though the Bank of England cut interest rates further, as policymakers were divided and hinted there was limited space for more easing. The BoE's rate-setting Monetary Policy Committee voted 5-4 to lower borrowing costs by a quarter-point to 3.75%, its fourth rate cut this year, but it signalled it would continue to cut interest rates gradually. Sign up here. The pound , which had been lower earlier in the day, reversed course and was last up 0.1% at $1.3381. Against the euro, the pound was up 0.2% at 87.56 pence. BOE'S MPC DIVIDED The MPC has been almost evenly split for two straight meetings, after voting by five to four to keep interest rates on hold last month. Governor Andrew Bailey changed his view this time around by voting for a cut, tipping the balance on the committee. "We still think rates are on a gradual path downward," Bailey said in a statement. "But with every cut we make, how much further we go becomes a closer call." Markets trimmed their expectations for further easing following the decision. The next rate cut is now not fully priced until the June 2026 meeting, whereas previously it had been expected by April. "If there is a reaction in sterling to rally, it will be perfectly predictable,” said Neil Parker, head of economics and market strategy at Moneycorp. UK government bond yields climbed after the decision, with the benchmark 10-year gilt yield rising 3.5 basis points to 4.517%. The two-year yield , which is sensitive to changes in BoE policy expectations, rose 5 bps to 3.768%. The moves in bond yields and the currency largely reversed a fall the day before after UK inflation in November was softer than expected. British consumer price inflation fell to 3.2% in November, its lowest since March, data showed on Wednesday. The median forecast in a poll of economists surveyed by Reuters had been for a decline to 3.5%. In a busy day for central banks in Europe, Sweden's Riksbank and Norway's Norges Bank both kept their policy rates on hold, while the European Central Bank is expected to keep its deposit rate on hold when it announces policy later. https://www.reuters.com/world/uk/sterling-steady-before-expected-boe-rate-cut-2025-12-18/

2025-12-18 07:40

BEIJING, Dec 18 (Reuters) - China's Commerce Ministry confirmed on Thursday that it had granted some general licences for exporting rare earths. Sign up here. https://www.reuters.com/world/asia-pacific/china-confirms-granting-some-rare-earth-export-licences-2025-12-18/