2025-12-16 20:50

By Promit Mukherjee and David Ljunggren OTTAWA, Dec 16 (Reuters) - The Bank of Canada says regulations on future Canadian stablecoins must ensure they are backed by high-quality liquid assets and be pegged one-to-one to a central bank currency, Governor Tiff Macklem said on Tuesday. Sign up here. The Liberal government said in November that it would be introducing regulations next year for stablecoins, a form of cryptocurrency which are convertible to a fiat currency at par. "We want stablecoins to be good money, like bank notes or money on deposit at banks," Macklem said. "A stablecoin must be pegged at a one-to-one ratio to a central bank currency and be backed by high-quality liquid assets so that it can always be converted to cash at par," he told the Montreal Chamber of Commerce said. High quality liquid assets are usually government-backed securities such as treasury bills and government bonds. The conditions for redeeming stablecoins must be fully disclosed, including the timing and any fees that need to be paid, Macklem said. Ottawa wants to bring Canada's financial system up to speed with many other advanced and developing economies - including the United States - which are tapping into the potential of cryptocurrences. The legislation will help built trust in the system so that fiat-backed stablecoins are safe and secure for consumers and businesses to use, the finance ministry says. The central bank will be the regulator for the asset. "The goal is to ensure Canadians can leverage the innovation of stablecoins and do so safely," said Macklem, making his final public appearance of the year. Macklem said 2026 would see more innovation in the financial system as Canada modernizes its financial payments system. This includes setting up Real-Time Rail, a payments system which will allow instant settlements among consumers and businesses in Canada as well as across borders. The bank also intends to work on the implementation of an open banking system which will make it easier for consumers to compare and switch banks easily, he said. ((Reuters Ottawa bureau)) Keywords: CANADA CENBANK/ https://www.reuters.com/business/bank-canada-wants-stablecoins-be-backed-by-high-quality-liquid-assets-2025-12-16/

2025-12-16 20:36

Midad Energy offers all cash deal, money in escrow, sources say US Treasury has already rejected two other bids Midad Energy competing with Exxon, Chevron, Carlyle, sources say Dec 16 (Reuters) - Saudi Arabia's Midad Energy has emerged as one of the leading contenders to buy Russian oil major Lukoil's (LKOH.MM) , opens new tab international assets, leveraging deep political ties with Moscow and Washington, three people familiar with the matter said. The assets, valued at about $22 billion and spanning oilfields, refineries and thousands of fuel stations worldwide, have drawn bids from about a dozen investors, including U.S. oil majors Exxon Mobil(XOM.N) , opens new tab and Chevron (CVX.N) , opens new tab and private equity firm Carlyle, sources have said. Sign up here. Lukoil is looking to sell its foreign operations after they were crippled by sweeping U.S. sanctions imposed in October aimed at pressuring Russia to end its war in Ukraine. Midad Energy and Lukoil declined to comment. The U.S. Treasury did not immediately respond to requests for comment. Midad Energy CEO Abdulelah Al-Aiban is the brother of powerful Saudi national security adviser Musaed Al-Aiban, who took part in U.S.-Russia peace talks in Saudi Arabia in February. Their father, Mohamed Al-Aiban, was the kingdom's first intelligence chief. Midad Energy's bid comes against the backdrop of booming economic cooperation between the U.S. and Saudi Arabia under U.S. President Donald Trump, building on decades of energy and security ties. In 2025 alone, Riyadh and Washington signed deals spanning defence, energy and technology, with Saudi Arabia pledging investments of up to $1 trillion. Midad Energy has an ambitious expansion strategy, underscored by a $5.4 billion deal with Algeria in October. Midad Energy plans an all-cash offer for Lukoil's assets, with funds to be held in escrow until sanctions on the Russian company are lifted, the sources said. The deal could involve U.S. companies, one of the sources added. The U.S. Treasury has already blocked two other bidders - Gunvor and U.S. bank Xtellus Partners - from buying Lukoil assets, highlighting geopolitical hurdles. Washington's sanctions, which were also imposed on fellow Russian oil major Rosneft (ROSN.MM) , opens new tab, bar U.S. citizens from dealing with the firms, freeze their U.S.-based interests and cut off key sources of finance. Lukoil has until January 17 to sell the assets, under the latest deadline set by the Treasury. (This story has been corrected to clarify that Midad Energy is not a part of Al Fozan Holding in paragraph 7) https://www.reuters.com/business/energy/saudi-firm-midad-among-frontrunners-buy-lukoils-global-assets-sources-say-2025-12-16/

2025-12-16 20:15

RIO DE JANEIRO, Dec 16 (Reuters) - A strike at Brazilian state-run oil company Petrobras (PETR3.SA) , opens new tab entered its second day on Tuesday, affecting 24 oil platforms and eight refineries, union FUP said in a statement. Sign up here. https://www.reuters.com/business/world-at-work/petrobras-strike-affects-platforms-refineries-second-day-union-says-2025-12-16/

2025-12-16 20:08

New rules aim for 75% methane reduction by 2035 Previous draft rules criticized as too difficult by industry New rules effective 2028, allow custom approaches to control methane CALGARY, Dec 16 (Reuters) - Canada announced long-promised rules on Tuesday aimed at dramatically reducing methane emissions from the country's oil and gas sector. The regulations lay out a path for Canada — the world's fourth-largest oil producer — to cut its overall emissions of the potent greenhouse gas by 75% over 2014 levels by 2035. Sign up here. They fulfill a promise by Prime Minister Mark Carney to strengthen Canada's existing methane rules, but allow for a slightly longer target time frame than the previous draft rules announced under Carney's predecessor Justin Trudeau. Trudeau's never-implemented rules called for a 75% reduction in methane emissions by 2030 and faced criticism from the oil and gas industry for being too difficult to achieve. While methane does not last as long in the atmosphere as carbon dioxide, it can have 80 times the climate-warming impact of CO2 over a 20-year period. Oil and gas facilities are responsible for about half of Canada's total methane emissions, according to the government. Methane — the main component of natural gas — is released directly into the atmosphere during oil and gas production through practices such as venting and flaring, and can also escape through leaks in wells and other infrastructure. The new rules, which will take effect in 2028, prohibit venting with several exceptions and establish an inspection schedule for companies to find equipment leaks and repair them. Operators will have the option to design their own approaches to controlling methane as long as they meet required methane intensity thresholds. Total greenhouse gas emissions from Canada's oil and gas sector continue to grow as production increases, and Canada is not expected to reach its target of cutting greenhouse gas output by 40% to 45% below 2005 levels by 2030. Carney, who has been criticized by environmentalists who see him as prioritizing the economy over climate, recently rolled back some of Canada's emissions policies to spur energy investment. But on methane, the country has made progress. Previously enacted rules, which require industry to regularly inspect and repair equipment to reduce leaks, have helped put Canada on track to meet its previous methane commitment of a 40% to 45% reduction below 2012 levels by the end of 2025. The Canadian government said the new rules will reduce emissions by 304 million tonnes of carbon dioxide equivalent while reducing oil and gas production by just 0.2% between 2025 and 2035. https://www.reuters.com/sustainability/boards-policy-regulation/canada-unveils-new-rules-lower-oil-gas-methane-emissions-2025-12-16/

2025-12-16 20:00

Colombia saved over $5.5 bln in debt service payments this year through liability management 2025 fiscal deficit will be below target, finance ministry official says Colombia could explore new international markets such as Asia BOGOTA, Dec 16 (Reuters) - Colombia will carry out many debt management operations in local and international markets next year, before the end of the current government's term in August, in a bid to continue easing fiscal pressures, the head of public credit at the finance ministry said on Monday. Colombia saved more than 21 trillion pesos ($5.5 billion) in debt service payments this year through liability management operations like swaps and buy-backs, public credit director Javier Cuellar told Reuters in an interview, projecting savings for 2026 will also be “a big number.” Sign up here. "There could be new markets (for debt management operations), there could be some reorientation in terms of currency portfolio and funding sources,” Cuellar said at his office in downtown Bogota. In its most recent operation in November, the country issued 2 billion euros in global bonds and repurchased $4 billion in securities. Latin America’s fourth-largest economy will end this year with a fiscal deficit below the latest target of 7.1% of gross domestic product, he said, adding that next year the figure could come in below the 6.2% target set in the ministry's fiscal framework. “I would like to show a deficit below 6% of GDP for 2026 in the financial plan,” Cuellar said. The targets will be updated between late December and early January. The ministry posted on X later on Tuesday afternoon that the 2025 fiscal deficit would be 6.2% of GDP, thanks to the debt management operations. As part of its financing strategy, the government could explore new international markets such as Asia, Cuellar added. The ministry is also considering direct placements of local TES bonds with international investors like hedge funds to reduce auction volumes and sales to state entities, he said. “There was a divestment in Colombia (by foreign investors) and what I want is to revive investor appetite,” he said. TES bonds are the second-largest source of domestic financing for public spending, after tax revenue. Cuellar said the government expects to issue about $4.6 billion in global bonds next year to pay off a Total Return Swap operation carried out this year, through which the government obtained a one-year loan in Swiss francs worth around $9.3 billion. He stressed the planned bond issuance will not represent net new debt and said dollar-denominated issuance for fresh financing needs “will be very low.” The government of leftist President Gustavo Petro suspended the fiscal rule — a legal framework designed to prevent excessive debt and deficits — for three years to raise the 2025 deficit target, prompting Moody’s and S&P to downgrade the country's sovereign credit rating. https://www.reuters.com/world/americas/colombia-carry-out-many-debt-management-operations-next-year-2025-fiscal-deficit-2025-12-16/

2025-12-16 19:50

BUENOS AIRES, Dec 16 (Reuters) - Argentina's economy expanded 3.3% in the third quarter from the previous quarter, official data showed on Tuesday, marking its fourth straight quarterly gain, but below analysts’ expectations. Analysts had forecast growth of 3.5% for the September to December period. Sign up here. The year-on-year increase was driven mainly by a sharp rise in gross fixed investment, with gains also recorded in financial intermediation, mining and quarrying, and the hospitality sector, Argentina’s national statistics agency INDEC said in a report. In seasonally adjusted terms, GDP grew 0.3% compared to the second quarter of the year, INDEC added. President Javier Milei’s party secured a commanding win in the midterm legislative elections in late October, reflecting broad support for his economic agenda despite the government's harsh austerity measures. Argentine assets rose sharply immediately following the midterm victory. Economists are watching how Latin America’s third-largest economy consolidates its recovery after exiting recession late last year, with domestic consumption and industrial output still under pressure. Analysts still warned that Milei's stronger-than-expected midterm showing underscores voter concerns about a return to past economic crises and a willingness to give his high-stakes economic overhaul more time, despite unease over austerity. The government expects the economy to grow 5.4% in 2025, while the central bank’s latest Market Expectations Survey (REM) forecasts growth of 4.4% for the year. https://www.reuters.com/world/americas/argentinas-economy-expands-33-third-quarter-2025-12-16/