2025-12-15 18:51
Right winger Jose Antonio Kast will be next president of Chile Has pledged crime crackdown, spending and regulatory cuts Markets have rallied as investors bet on pro-market shift Will be constrained by divided Congress SANTIAGO, Dec 15 (Reuters) - Chilean president-elect Jose Antonio Kast secured a commanding runoff win against leftist candidate Jeannette Jara on Sunday that will give him momentum, but he faces a balancing act to move quickly on his promises while building needed support among more moderate lawmakers. Kast - whose margin of victory was some 16 percentage points over government-backed Jara, a member of the Communist Party - ran on a law-and-order platform that pledged a crackdown on rising crime and a tougher stance towards unchecked migration at Chile's porous northern border. Sign up here. "We are going to work tirelessly to recover tranquility, to recover order, to recover growth and to recover hope because Chile has given us a clear mandate that admits no excuses," Kast said in a victory speech at his party headquarters on Sunday evening. He did, however, repeatedly warn that there were no quick fixes and asked voters for patience. He will take over in March from leftist President Gabriel Boric, with whom he met on Monday to discuss the transition. On Tuesday, Kast is set to travel to neighboring Argentina to meet with President Javier Milei. Kast's economic plan bears some similarities with Milei's, involving more flexible labor laws, corporate tax cuts, less regulation, and a deep reduction in spending. He has also said he will seek to encourage investment in the copper industry in the world's No.1 supplier, but has indicated no plans for major changes to its governance. There was little movement in either the Chilean peso or stock market on Monday. Both had made strong gains in the run-up to the second round and Kast's win was largely priced in, said Capital Economics in a note. 'MORE LIKE MIKE PENCE THAN DONALD TRUMP' Kast has been on the right-wing fringes of Chilean politics for years, with two previous failed presidential runs under his belt and both personal and family support for the dictatorship of Augusto Pinochet in his past. He has frequently railed against crime, migrants and abortion. However, he has struck a more moderate tone in campaigning in recent months and was notably conciliatory towards opponents in his victory speech. "This is going to be 'Make Chile Boring Again' and I think that's good news because there were a lot of people who were afraid he was going to be an authoritarian, populist, radical president," said Patricio Navia, a Chilean professor of liberal studies at New York University. Kast - a Catholic with nine children - wears suits and eschews the fireworks of populist regional leaders like Milei, former Brazilian President Jair Bolsonaro or U.S. President Donald Trump. "He doesn't have that aggressive style of Milei or President Trump," Navia said. In his speech, "he seemed much more like Mike Pence than Donald Trump." CRIME FEARS The biggest topic of the election campaign was fears over crime, immigration and organized gangs that have taken root in recent years. Chile remains one of Latin America's safest countries. But shootouts in broad daylight, brutal contract killings and extortion kidnappings, long a reality in other parts of the region but previously very rare in Chile, have shocked the nation and even stunted economic growth as people adjusted their daily habits. "If he (Kast) can credibly signal that he is doing something about improving people's perception around the security situation, I think then we are heading into a phase of political stability there which would be rewarded by markets," said Witold Bahrke, Senior Macro & Allocation Strategist at Global Evolution emerging markets fund. Kast's proposals include building walls, trenches and electric fences along the border and forming a police force similar to the U.S.'s Immigration and Customs Enforcement to detain and expel migrants. He's also vowed to expel all migrants in the country illegally and encouraged them to leave before he takes office. However, while there is broad political support to tackle security issues, Kast will be conscious of the need to work with a Chilean Congress that is divided and may not support his more radical proposals. The Senate is evenly split between left- and right-wing parties, while the swing vote in the lower legislative body belongs to the populist People's Party. A strict austerity agenda could also risk triggering protests, analysts at Oxford Economics said. In his favor, there are already signs that sectors like construction and retail are recovering after a tough few years, while inflation has been cooling. But debt is high, said University of Chile economist Jorge Berrios, and his first 100 days will be key. "There are a lot of expectations in relation to the future government and high expectations can cause problems if they are not fulfilled," said Berrios. https://www.reuters.com/world/americas/chilean-investors-cheer-election-kast-president-2025-12-15/
2025-12-15 16:35
PARIS/ROME, Dec 15 (Reuters) - Italian Prime Minister Giorgia Meloni and French President Emmanuel Macron have agreed on the need to delay a final European Union vote on the Mercosur trade deal, two sources familiar with the discussion told Reuters on Monday. France has been trying to rally other EU countries to form a blocking minority against the deal negotiated by the European Commission. A vote was expected in Brussels this week. Sign up here. https://www.reuters.com/world/europe/france-italy-aligned-need-delay-final-mercosur-vote-say-sources-2025-12-15/
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/
