2025-12-17 09:03

U.S. is largest single EBRD shareholder Congress authorised $437.5 million for capital increase Trump ordered review of US participation in international organizations EBRD expands with investments in Sub-Saharan Africa and Iraq LONDON, Dec 17 (Reuters) - The European Bank for Reconstruction and Development said all of its largest shareholders, including the United States, had either paid for its 4 billion euro ($4.7 billion) capital increase or pledged to do so. "Our largest shareholders have now either subscribed or have indicated their intention to subscribe and in total we expect more than 90% of the general capital increase to be taken up," an EBRD spokesperson told Reuters. Sign up here. The lender's board approved the increase in late 2023 and in May extended the subscription deadline to end-2025. At that time, more than half of shareholders had paid in or were in the process of doing so, but the U.S. – its biggest shareholder – had yet to commit. Early this year, President Donald Trump ordered a review of U.S. participation in international organisations, raising doubts over Washington's financial support as the former top donor shifted away from development finance. Last month, Trump signed an appropriations bill allowing the Treasury to subscribe for up to 40,000 additional EBRD shares and authorising $437.5 million for the purpose. It was not immediately clear whether the payment had been made. The increase will lift the EBRD's capital base to 34 billion euros, enabling it to double Ukraine investments once reconstruction begins. The bank recently expanded its membership and announced its first investments in Sub-Saharan Africa - a 30-million-euro loan to strengthen Benin's national grid - and in Iraq, a $100 million trade finance facility. The EBRD has 77 national shareholders plus the European Union and the European Investment Bank, and has invested more than 190 billion euros since its 1991 founding. ($1 = 0.8543 euros) https://www.reuters.com/business/finance/ebrd-secures-bulk-shareholder-capital-increase-after-us-signs-off-2025-12-17/

2025-12-17 07:30

Dec 17 (Reuters) - Debris from a downed Ukrainian drone briefly set fire to processing equipment and a pipeline at an oil refinery in Russia’s southern Krasnodar region overnight, authorities there said on Wednesday. There were no casualties reported at the Slavyansk refinery, which Kyiv has repeatedly targeted since Russia invaded Ukraine in 2022. Sign up here. Two people were injured, several private homes were damaged and power supply networks were hit after drone debris fell in other residential areas of Krasnodar, the region operational headquarters said on Telegram earlier on Wednesday. Krasnodar, on the Black Sea, is a major energy and export hub for Russia, hosting key oil infrastructure including the port of Novorossiisk and nearby terminals, as well as the Tuapse refinery and export facilities. Ukraine has said strikes on Russia’s energy infrastructure are aimed at disrupting fuel supplies for the Russian military and cutting revenues from oil exports that help fund Moscow’s war effort in Ukraine. https://www.reuters.com/world/europe/ukraine-drone-debris-sparks-fire-russias-slavyansk-refinery-authorities-say-2025-12-17/

2025-12-17 07:21

British inflation falls to 3.2%, lowest since March Interest rate futures show near certainty of BoE rate cut BoE's Bailey likely to switch vote for rate cut Sterling drops 0.7% against dollar LONDON, Dec 17 (Reuters) - Sterling was set for its biggest one-day drop in weeks on Wednesday as investors added to bets that the Bank of England will cut rates on Thursday after data showed British inflation unexpectedly fell sharply in November. British consumer price inflation fell to 3.2% in November, its lowest since March, from 3.6% in October, official figures showed on Wednesday. Sign up here. The median forecast in a poll of economists surveyed by Reuters had been a decline to 3.5%. DATA STRENGTHENS CASE FOR RATE CUT Interest rate futures are now pricing in a close to 100% chance of a 25 basis point cut by the BoE, compared with a 90% chance before the inflation figures. The pound fell 0.7% against the dollar to as low as $1.3343, its weakest level in a week, and was set for its biggest one-day drop since early November. Against the euro, it also fell, with the euro up 0.43% to 87.90 pence. The inflation decline strengthened the case for a BoE rate cut this week, said Lale Akoner, Global Market Analyst, eToro. "A rate cut would signal the start of an easing cycle aimed at supporting demand, and markets have moved quickly to price that in, with the pound weaker and gilt yields heading lower," she said. Yields on British government bonds fell sharply across maturities. Also supporting the case for a rate cut, Britain's economy shrank unexpectedly in the three months to October, losing momentum in the fraught run-up to finance minister Rachel Reeves' budget, according to data on Friday. ANOTHER 5-4 BOE VOTE SPLIT EXPECTED Last month the BoE's Monetary Policy Committee voted 5-4 to keep interest rates on hold. Economists expect a December rate cut by only a narrow 5-4 margin. Of those members who opposed a cut last month, Governor Andrew Bailey looks most likely to switch votes. British inflation has been higher than in other major advanced economies, and in November the central bank forecast it would remain above its 2% target until the second quarter of 2027. But since then some economic figures have suggested that Reeves' budget could help support growth. Last week, the Confederation of British Industry on Friday bumped up its economic growth forecast for next year, citing a temporary boost to government spending following the budget, while warning that deep-rooted problems remained. British businesses have reported some renewed momentum after months of worry about possible tax increases, PMI figures showed on Tuesday. BoE Deputy Governor Clare Lombardelli said plans announced in the budget to shift climate change costs away from levies on energy bills towards general taxation might temporarily lower inflation by up to half a percentage point from April 2026 - potentially allowing the BoE to hit its CPI target sooner - but do little to change the longer-term outlook. On Tuesday, data showed Britain's unemployment rate hit its highest since the start of 2021 and private sector pay growth was the weakest in nearly five years in the run-up to Reeves' annual budget. https://www.reuters.com/world/uk/pound-slides-british-inflation-eases-2025-12-17/

2025-12-17 06:32

Russian crude to India seen around 1.2 mln bpd in December India imported 1.77 mln bpd from Russia in November India is under US pressure to curb Russian oil buying India is top Russian seaborne crude buyer since Ukraine war NEW DELHI/MOSCOW, Dec 17 (Reuters) - India's Russian oil imports are poised to top 1 million barrels per day in December, trade and refining sources said, defying expectations for a sharp decline as refiners have resumed buying from non-sanctioned entities offering deep discounts. Ties between the two countries have remained strong despite pressure from Western sanctions after Russian President Vladimir Putin met with Indian Prime Minister Narendra Modi earlier this month. At the time, the two leaders said their cooperation would continue. Sign up here. After India - the world's third-largest crude importer - shipped in 1.77 million bpd of Russian oil in November, up 3.4% from October, according to data from trade sources, imports were expected to plunge due to Washington's sanctions on two top Russian producers as some refiners slowed or paused purchases. December arrivals are likely to exceed 1.2 million bpd, according to preliminary LSEG trade flow data, which could rise to an average of 1.5 million bpd by the end of the month, one trade source said. The source and others declined to be named publicly as they were not authorised to speak with the media. India's December imports from Russia have been fuelled by a rush among buyers to finalise deals ahead of Washington's November 21 deadline for completing transactions with Rosneft (ROSN.MM) , opens new tab and Lukoil (LKOH.MM) , opens new tab , with several such cargoes recently arriving at Indian ports, LSEG data shows. Imports could remain near December levels in January as new non-sanctioned entities step in to supply Russian cargoes, trade sources said. Refining sources, however, estimated that January volumes would be lower than 1 million bpd as Reliance Industries (RELI.NS) , opens new tab has halted purchases. Reliance is receiving at least 10 Russian oil cargoes this month, according to LSEG data. Reliance did not immediately respond to a request for comment. STATE REFINERS RETURN TO PURCHASES Top refiner Indian Oil Corp (IOC.NS) , opens new tab is buying Russian volumes in line with pre-sanctions levels, two sources said. Bharat Petroleum (BPCL.NS) , opens new tab has raised its January purchases to at least six cargoes from two in December, while Hindustan Petroleum is in talks for January loadings, sources said. The three state refiners and India's oil ministry did not respond to requests for comment. Private refiner Nayara Energy, which is majority-owned by Russian firms including Rosneft, continues to buy only Russian oil following the withdrawal of other suppliers after it was sanctioned by the EU and Britain. Reliance and HPCL Mittal Energy have said they are halting Russian oil purchases. They, along with Mangalore Refinery and Petrochemicals (MRPL.NS) , opens new tab, are skipping Russian purchases for January, sources said. MRPL did not respond to a request for comment. TOP RUSSIAN BUYER India became Russia's biggest seaborne crude buyer after the West imposed a raft of sanctions against Moscow for invading Ukraine. But those purchases became a liability in trade talks with the U.S., as President Donald Trump doubled import tariffs on Indian goods to 50%. "Thanks to President Trump's leadership, Russia has been forced to accept deep discounts and fewer buyers for its oil," a U.S. official said. "These pressures are limiting the Kremlin's revenues and increasing the financial strain of sustaining its war." To facilitate exports, Russian producers are using domestic market swaps - exchanging oil bound for local refineries with export volumes handled by non-sanctioned firms - to maintain flows to India without breaching sanctions, industry sources said. Such swaps are commonly used in Russia to manage domestic supply tightness while preserving export commitments, they added. "There is a possibility that non-sanctioned entities can increase their crude output and shift supplies to export markets and sanctioned barrels can meet Russia's local demand," said Prashant Vashisth, vice president at Moody's affiliate ICRA. Indian refiners are attracted by January prices that are discounted by about $6 per barrel to dated Brent, two or three times wider than in August, sources said. Indian refiners' Russian oil purchases peaked near 2 million bpd in June, according to data obtained from trade sources. https://www.reuters.com/business/energy/indias-russian-oil-imports-show-resilience-despite-sanctions-sources-say-2025-12-17/

2025-12-17 06:25

ECB expected to hold rates on Thursday, BoE cut fully priced Yen weakens as BOJ expected to raise rates on Friday Dollar index gains, euro edges lower NEW YORK/LONDON, Dec 17 (Reuters) - Sterling weakened on Wednesday after an unexpected drop in UK inflation all but guaranteed that the Bank of England would cut interest rates, while the dollar rose as traders awaited other central bank decisions and weighed commentary from Federal Reserve officials. Sterling was set for the biggest one-day drop as interest rate futures priced in a near 100% chance of a quarter-point rate cut from the BoE on Thursday. Sign up here. Data had shown that British inflation fell much more sharply than forecast in November to 3.2%, its lowest since March, from 3.6% in October. "Today's CPI release removes any remaining doubt around a BoE cut in tomorrow's meeting," said TS Lombard analyst Alexandros Xenofontos in an investor note. "Taken alongside yesterday's labour market data release, the data are sufficient for the MPC to cut tomorrow but not yet strong enough to justify more than one cut in 2026." Sterling was down 0.34% to $1.33749, easing away from the two-month high it touched on Tuesday after data showed Britain's unemployment rate hit its highest since the start of 2021. "For Sterling, we have noted that our view of relative underperformance is predicated on softer data, including on the inflation front, rather than a 'dovish' reaction function in itself. Today’s data goes in that direction and focus will now turn to the BoE meeting tomorrow," Goldman Sachs analysts led by Teresa Alves wrote in an investor note. CENTRAL BANK MEETINGS IN FOCUS Federal Reserve Governor Christopher Waller said on Wednesday the U.S. central bank still has room to cut interest rates amid rising job market weakness. That was in contrast to commentary by Atlanta Federal Reserve President Raphael Bostic, who said on Tuesday that he did not think that the Fed's decision to cut rates last week was warranted, and that he had penciled in no further reductions in borrowing costs for 2026, given his outlook that economic growth will rebound to around 2.5% and price pressures will remain elevated. The U.S. consumer price index data is due on Thursday. "We saw the dollar weaken after the jobs data yesterday, but the move was reversed fairly quickly because I think the market seems to be kind of doubtful about the possibility of a Fed cut in January," said Vassili Serebriakov, FX strategist at UBS in New York. The dollar index , which measures the U.S. currency against six others, rose 0.16% to 98.37, still not far from the lowest level since early October hit on Tuesday. The index is down about 9.5% this year, on track for its steepest annual decline since 2017. Markets are awaiting a host of central bank policy decisions due this week, including the BoE and European Central Bank on Thursday, as well as the Bank of Japan, which is expected to raise interest rates on Friday to a three-decade high. The dollar strengthened 0.6% to 155.625 against the yen ahead of the BOJ meeting, where the focus will be on the forward guidance and where the policy rate is headed in 2026. Europe's largest economy continues to struggle to grow, with a survey showing that German business morale unexpectedly fell in December. The euro was flat at $1.174375, after touching a 12-week high on Tuesday ahead of the ECB policy decision, where the central bank is expected to hold rates steady. "I think of all these central bank meetings that are coming up, the ECB is not likely to be very impactful, but the Bank of Japan is probably the most important and where most uncertainty lies," Serebriakov said. In cryptocurrencies, bitcoin fell 2.18% to $85,874.32. Ethereum declined 4.66% to $2,814.11. https://www.reuters.com/world/asia-pacific/dollar-nears-2-12-month-low-labour-data-leaves-rate-path-uncertain-2025-12-17/

2025-12-17 06:23

SEOUL, Dec 17 (Reuters) - South Korea's central bank said on Wednesday headline inflation next year could exceed earlier forecasts if the won stays at its current level against the dollar. "If the KRW/USD exchange rate continues to stay at the current high level of around 1,470 won throughout next year, the consumer price growth rate could rise to the early-to-mid 2% range, slightly surpassing our current projections," the Bank of Korea said in a biannual report on inflation. Sign up here. It said a sustained dollar-won rate near the current level of 1,470 per dollar could trigger a spillover effect on consumer prices and raise domestic inflation. South Korea's headline inflation rose 2.4% in November from a year earlier and stayed above the BOK's target level of 2% for a third straight month. Governor Rhee Chang-yong said the bank would ensure that dollar outflows, which are expected to occur with a promised $350 billion investment fund as part of the country's trade deal with the U.S., do not hurt foreign exchange stability. Rhee also said it was time for the National Pension Service to pay "more attention to the macroeconomy as it is now a major player in the market, unlike a decade ago," as he repeated calls for the NPS to use currency hedging when buying overseas assets. The NPS, the world's third-largest pension fund, has been increasing overseas equity investment in recent years by buying dollars in the onshore foreign exchange market, helping drive the won lower. On Wednesday, the won weakened 0.5% to 1,480.4 per dollar, near its 16-year low. https://www.reuters.com/world/asia-pacific/south-korea-central-bank-sees-upside-inflation-risk-with-weaker-won-2025-12-17/