2026-02-06 17:02

Trump administration has frozen $205 million in federal funding since October 1 Democrats criticize Trump's demand that landmarks be renamed for him in exchange for funding Suspension would affect 1,000 workers, could threaten rail infrastructure and economic output NEW YORK/WASHINGTON, Feb 6 (Reuters) - U.S. District Judge Jeannette Vargas said on Friday she will issue a written ruling "very shortly" on an emergency request by the states of New York and New Jersey to lift a four-month-old freeze on federal funding for the $16 billion Hudson Tunnel Project. Vargas held an hour-long hearing on Friday on the request ahead of plans to suspend work at 5 p.m. ET (2200 GMT), after President Donald Trump's administration refused to restore funding, the Gateway Development Commission said. Sign up here. The project involves repairing an existing rail tunnel and building a new one under the Hudson River, expanding a route that is the linchpin of rail travel between Manhattan and New Jersey. Any failure of the existing Hudson Tunnel, which was built in 1910 and heavily damaged by Hurricane Sandy in 2012, would disrupt a commuter route used by more than 200,000 travelers and 425 trains daily - including passenger railroad Amtrak - in a metropolitan area that produces 10% of U.S. economic output. A lawyer for the state of New Jersey, Shankar Duraiswamy, said at the hearing that a work stoppage would force the states to expend significant resources securing idle construction sites. "Project sites cannot simply be abandoned. There is literally a massive hole in the earth in North Bergen, New Jersey, that must be secured," Duraiswamy said. Justice Department lawyer Tara Schwartz countered that the states and their project partners could continue to fund construction without the federal government. "The states claim there's this parade of horribles that's going to occur if they have to put hammers down," Schwartz said. "But the GDC (Gateway Development Corporation) is funded by the states, federal government and Amtrak ... so it's not clear why the states can't keep the project going." The Transportation Department has withheld $205 million in reimbursements since October 1 for the project. Trump has demanded that Washington Dulles Airport and New York's Penn Station be renamed for him in exchange for unfreezing billions of dollars in funding for the project, drawing strong criticism from Democrats. Gateway said that the suspension would idle 1,000 construction workers and that Trump's decision had endangered passengers who had to rely on "decaying, century-old rail infrastructure." Gateway had previously said work was already suspended. DEMOCRATS CRITICIZE TRUMP FOR WITHHOLDING FUNDS Trump last month asked U.S. Senator Chuck Schumer to back the renaming of Washington Dulles Airport and Penn Station, but the New York Democrat told the White House he did not have the power to rename them, a source familiar with the matter told Reuters. The White House did not respond to a request for comment and Schumer's office declined to comment. U.S. Senator Cory Booker, a Democrat from New Jersey, told a press conference near the project on Friday that Trump was holding the tunnel hostage because he "seems to want to put his name on everything." Since returning to office in January, the Republican president has affixed his name to prominent Washington buildings, a planned class of Navy warships, a visa program for wealthy foreigners, a government-run prescription drug website, and federal savings accounts for children. New York Senator Kirsten Gillibrand, a Democrat, called Trump's suggestion ridiculous. "These naming rights aren't tradable as part of any negotiations, and neither is the dignity of New Yorkers ... The president continues to put his own narcissism over the good-paying union jobs this project provides and the extraordinary economic impact the Gateway tunnel will bring." The project was allocated about $15 billion in federal support under former President Joe Biden. Nearly $2 billion has been spent on the project so far. https://www.reuters.com/world/us/work-be-suspended-16-billion-new-york-city-tunnel-project-friday-2026-02-06/

2026-02-06 16:43

NEW DELHI, Feb 6 (Reuters) - India's National Stock Exchange (NSE) on Friday approved the creation of a unit to run a proposed national coal trading exchange. Last year, India announced plans to establish a coal trading platform to buy and sell domestically produced coal amid surging output. Sign up here. NSE will hold at least a 60% stake in the coal exchange, with the remaining 40% to be potentially allocated to other shareholders, the exchange operator said in a filing. "The platform will enable electronic trading of physical coal through standardised contracts and facilitate physical delivery and, in future, derivative products, subject to regulatory approval," NSE said. The exchange operator said the lack of a unified trading platform has resulted in price inefficiencies, limited access for smaller participants and the absence of a reliable spot benchmark. State-owned Coal India currently accounts for about three-quarters of the more than 1 billion tonnes of coal mined in India, the world's second-largest coal market after China. NSE said it will submit a licence application to the Coal Controller Organisation of India for the proposed exchange. https://www.reuters.com/business/energy/indias-nse-set-up-unit-proposed-national-coal-trading-exchange-2026-02-06/

2026-02-06 16:18

Daly sees disconnect between cautious optimism among businesses, job worries for workers Fed policymakers are weighing the balance of inflation and employment risks Upcoming jobs report a key focus as central bankers weigh options Feb 6 (Reuters) - San Francisco Federal Reserve Bank President Mary Daly said on Friday she thinks the U.S. labor market is in a "precarious" position, saying there could have been a case for the Fed to cut rates last week and that further interest-rate cuts may be needed. While businesses are largely cautiously optimistic, she said, households are less confident, given that businesses so far hesitant to make mass layoffs could rapidly switch gears. Sign up here. "We’ve been in a relatively low-hiring, low-firing environment for some time. That may persist, but workers are aware that things could change quickly, leaving them in a no-hiring, more-firing labor market," Daly said in a post on LinkedIn. "With inflation printing above the FOMC’s 2 percent goal, this rightly feels precarious." Speaking later with Reuters, she said that "given what I'm seeing in the economy, I lean towards, you know, additional cuts. Whether that's one or two is hard to say." VICE CHAIR SEES POTENTIAL FOR WEAKER JOB MARKET Speaking at a separate event, Fed Vice Chair Philip Jefferson also flagged the potential for a suddenly weaker job market, though he thinks the job market is stable and supported by the Fed's rate cuts to date. "Things can change in the labor market quickly," he said. "We don't need to see any more weakening in the labor market. I would not want that." The U.S. Federal Reserve last week left short-term borrowing costs on hold, citing too-high inflation and a labor market that appeared to be stabilizing. Fed Chair Jerome Powell said the central bank was "well positioned" to respond, "letting the data light the way for us." Other policymakers since then have suggested they lean in one direction or another, with Fed Governor Lisa Cook on Wednesday saying she feels the risks are "tilted toward higher inflation," while Fed Vice Chair for Supervision Michelle Bowman noted shortly after she joined Cook in the 10-2 vote to leave rates in their 3.50% to 3.75% range that she did not "consider downside risks to the employment side of our mandate to have diminished." Most estimates, including from Fed policymakers, put underlying inflation at the end of last year at around 3%, above the Fed's 2% goal. Data on the labor market has mostly convinced economists that the low-hiring, low-firing stasis continues. The Bureau of Labor Statistics releases the monthly jobs report next Wednesday. It was delayed by the government shutdown over a standoff between Democrats and Republicans on funding for immigration enforcement that continues to simmer, and economists expect it to show the unemployment rate was steady in January at 4.4%. But a five-year low in job openings in December and a rise in new weekly claims for unemployment insurance reported on Thursday by the U.S. Labor Department have some analysts beginning to worry the balance may be breaking toward labor market weakness. "The large downside surprise in December job openings may concern Fed officials and suggest they were premature to remove language in last month’s policy statement emphasising elevated downside risks to the labour market," wrote analyst Thomas Ryan at Capital Economics. "That said, with the hiring rate ticking up and the layoff rate remaining very low, we would not jump to the conclusion that the jobs market took another leg lower at the end of last year." For Daly, the answer appears to be standing ready. "We must watch both sides of our mandate," Daly said, referring to the Fed's dual goals of maximum employment amid low inflation. "Americans deserve both price stability and full employment, and we can’t take either for granted." https://www.reuters.com/business/feds-daly-says-outlook-feels-precarious-2026-02-06/

2026-02-06 15:28

TORONTO, Feb 6 (Reuters) - Canadian economic activity expanded at a slower pace in January as a measure of employment dipped, Ivey Purchasing Managers Index (PMI) data showed on Friday. The seasonally adjusted index edged down to 50.9 last month from 51.9 in December. Sign up here. The Ivey PMI measures the month-to-month variation in economic activity as indicated by a panel of purchasing managers from across Canada. A reading above 50 indicates an increase in activity. The gauge of employment decreased to an adjusted 51.1 from 53.0 in December, while the prices index was at 64.8, up from 63.2. The unadjusted PMI rose to 47.0 from 43.3, marking a three-month high. https://www.reuters.com/world/americas/canadas-ivey-pmi-shows-activity-decelerating-january-2026-02-06/

2026-02-06 15:19

BRASILIA, Feb 6 (Reuters) - Brazil's Finance Ministry has urged the central bank to close regulatory gaps that let criminal and tax‑evasion suspects hide assets in certain bank accounts, avoiding court‑ordered freezes meant to recover public funds, two sources and a document seen by Reuters said. The ministry argued that recent regulatory changes do not fully curb the problem associated with pooled and escrow accounts, which has surfaced in recent police operations targeting organized crime and fintech firms. Sign up here. The Finance Ministry said it engages collaboratively with the central bank across a range of issues "whenever it identifies scope to improve financial instruments." The central bank declined to comment. According to the Finance Ministry document, suspects have used pooled accounts - vehicles that combine funds from multiple beneficiaries - and escrow accounts originally designed as temporary pass‑through structures, to circumvent judicial systems used to locate and freeze assets belonging to individuals and companies under investigation. MINISTRY SAYS MEASURE ONLY MITIGATES RISKS The central bank in November strengthened rules for fintechs and virtual assets, requiring pooled accounts to be closed when clients use them to offer unauthorized financial services or conceal assets. But the Finance Ministry said the measure only mitigates, rather than eliminates, the risks. In its submission to the central bank, it warned that pooled accounts still hamper the collection of public debt, limit fund traceability and weaken efforts to fight money laundering. A third source familiar with the discussions said the central bank indicated at a meeting earlier this week that it now sees a higher level of security following the regulatory changes implemented in November. During the talks, technical staff proposed maintaining dialogue with the Finance Ministry, the federal police and other agencies, acknowledging that further rule adjustments could be made if needed. Sources said pooled accounts remain vulnerable because they do not reveal ultimate beneficiaries through the national financial registry nor can they be blocked via the judiciary's asset‑freezing system. Escrow accounts, increasingly offered by fintechs as regular current accounts, similarly fall outside freeze mechanisms, hindering proper tracing of funds. One source said investigators also suspect asset concealment involving Refinaria de Petroleos de Manguinhos (Refit), under investigation for alleged multibillionaire tax fraud. Authorities believe the company may hold more resources than the 1.2 billion reais ($229.4 million) already frozen, but the additional funds have not been located. Refit did not immediately respond to a request for comment. ($1 = 5.2312 reais) https://www.reuters.com/world/americas/brazil-finds-loopholes-letting-suspects-hide-assets-via-pooled-or-escrow-2026-02-06/

2026-02-06 15:11

Train 4 shutdown to last 45-50 days for maintenance Atlantic LNG to continue exports from Trains 2 and 3 Turnaround may cut output by over 600,000 metric tons Port of Spain, Feb 6 (Reuters) - Trinidad and Tobago's flagship Atlantic LNG plans to shut its 6 million metric ton per annum Train 4 for up to 50 days in May and June for extensive maintenance and repairs, three people with knowledge of the plan told Reuters. Atlantic LNG is majority owned by Shell (SHEL.L) , opens new tab and BP (BP.L) , opens new tab - each with a 45% stake - while Trinidad's National Gas Company (NGCTT.UL) holds 10%. The facility accounted for roughly 15% of BP's total global LNG production and 10% of Shell's LNG output in 2025, according to company documents. Sign up here. The maintenance and repairs, called a turnaround, will commence on May 4 and will run for between 45 and 50 days, the people told Reuters. During that time Atlantic will continue to export LNG from Trains 2 and 3, which together have a combined capacity of 6 mtpa, the people said. Atlantic LNG said the turnaround is designed to ensure it can operate the plant safely and reliably and could not comment on whether it would allow Trains 2 and 3 to operate at full capacity with the additional gas not needed for Train 4 during the period. Shell said it does not comment on trading activities, while BP and NGC did not respond to requests for comment. Atlantic LNG is Latin America's largest exporter of the superchilled gas with a capacity to produce 12 mtpa of LNG. Last year, however, the plant exported around 9 MT because of natural gas constraints, data from financial firm LSEG showed. Atlantic is the biggest exporter of LNG to South America, according to LSEG ship tracking data. Based on last year's production, the turnaround is likely to reduce Atlantic's output by more than 600,000 MT, according to Reuters calculations. Last year Atlantic exported 143 cargoes, based on the ownership structure it potentially means the loss of 20 cargoes during the 50 days with Shell and BP each giving up 9 cargoes and the NGC 2, Reuters calculates. Atlantic LNG exported four cargoes to the United States during January's Arctic freeze as some U.S. LNG plants became gas importers. https://www.reuters.com/business/energy/trinidads-atlantic-lng-shut-down-train-4-major-maintenance-2026-02-06/