2025-10-20 20:52

Official Argentine peso posts record closing low versus dollar US Treasury provides no details on swap line, peso purchases Argentine central bank says deal will enable it to respond to volatility Oct 20 (Reuters) - Argentina's central bank said on Monday it signed a $20 billion exchange-rate stabilization agreement with the U.S. Treasury Department, six days ahead of a key midterm election. The central bank's statement , opens new tab said the agreement sets forth terms for bilateral currency swap operations between the U.S. and Argentina, but it provided no technical details. Sign up here. The central bank, the BCRA, said: "Such operations will allow the BCRA to expand its set of monetary and exchange rate policy instruments, including the liquidity of its international reserves." The Argentine peso closed at a record low, down 1.7% on the day to end at 1,475 per dollar. The BCRA said the pact was part of a comprehensive strategy to enhance its ability to respond to foreign exchange and capital markets volatility. The U.S. Treasury did not respond to a request for details on the new swap line and has not issued its own statement about the arrangement. U.S. Treasury Secretary Scott Bessent said last week the arrangement with banks and investment funds would be backed by International Monetary Fund Special Drawing Rights held in the Treasury's Exchange Stabilization Fund that will be converted to dollars. Bessent has said the U.S. would not put additional conditions on Argentina beyond President Javier Milei's government continuing to pursue its fiscal austerity and economic reform programs to foster more private-sector growth. Bessent has announced several U.S. purchases of pesos in recent weeks, but has declined to disclose details. Currency traders said that since the Treasury first purchased pesos on October 9, sales of dollars into the peso market have reached hundreds of billions of dollars, though the source of the selling has not been disclosed. Brad Setser, a former U.S. Treasury official who is now a senior fellow with the Council on Foreign Relations, said there was a "preponderance of evidence is that the peso is significantly over-valued," an assessment shared with other analysts but which Bessent rejects. Setser said these indicators include strong import and outbound tourism growth, Argentines purchasing cheaper goods in neighboring countries and the central bank's failure to meet the IMF's reserve accumulation targets. "It does seem to me that the Treasury is taking an unusually large risk of losing money" in supporting the peso, he added. On Monday, the Wall Street Journal reported that a group of U.S. banks, including JPMorgan Chase (JPM.N) , opens new tab, Bank of America (BAC.N) , opens new tab and Goldman Sachs (GS.N) , opens new tab, was hesitant to lend $20 billion to Argentina without guarantees or collateral. The banks did not immediately respond to Reuters requests for comment. ELECTION THIS WEEKEND Argentine Economy Minister Luis Caputo said last week he hoped the swap deal framework would be finalized before the October 26 midterm parliamentary vote, in which Milei's party will seek to grow its minority presence in the legislature. Milei, who has sought to solve Argentina's economic woes through fiscal spending cuts and dramatically shrinking the size of government, has been handed a string of recent political defeats. U.S. President Donald Trump said last week the U.S. would not "waste our time" with Argentina if Milei's party loses in the midterm vote. The comment briefly shocked local markets until Bessent clarified that continued U.S. support depended on "good policies," not necessarily the vote result. A positive result for Milei's party would help block any policy repeal efforts, he added. https://www.reuters.com/world/americas/argentinas-central-bank-says-it-signed-20-billion-currency-swap-deal-with-us-2025-10-20/

2025-10-20 20:40

Taiwan could figure in to US-China talks Trade disputes unresolved before Xi-Trump meeting US is Taiwan's most important international backer WASHINGTON, Oct 20 (Reuters) - U.S. President Donald Trump said on Monday he expects to reach a fair trade deal with Chinese President Xi Jinping and downplayed risks of a clash over the issue of Taiwan, even as his top trade negotiator accused Beijing of engaging in "economic coercion." Trump suggested to reporters that China had no designs on invading Taiwan but acknowledged he expected the issue to be on the agenda at a planned meeting with Xi on the sidelines of an economic conference in South Korea next week. Sign up here. Trade tensions between the U.S. and China, the world's two biggest economies, have lingered. Disputes over tariffs, technology and market access remain unresolved days before the meeting. Trump spoke at the start of a meeting with Australian Prime Minister Anthony Albanese where the two signed a critical minerals agreement aimed at countering China. Trump's comments on Taiwan reflect one of the most sensitive issues in U.S.-China relations. Beijing has repeatedly pressed Washington to alter the language it uses when discussing its position on Taiwanese independence. Trump pledged to accelerate deliveries of nuclear submarines to Australia and was asked if U.S. actions in the waters of the Indo-Pacific were a sufficient deterrent to keep Xi from invading Taiwan. "China doesn't want to do that," Trump said, before boasting about the size and strength of the U.S. military. He added: "We have the best of everything and nobody is going to mess with that ... I think we'll end up with a very strong trade deal. Both of us will be happy." But U.S. Trade Representative Jamieson Greer took a tougher line later in the day, warning that the U.S. would respond with unspecified action to what he called a "broader pattern of economic coercion" by Beijing against firms that make strategic investments in critical U.S. industries. Officials in South Korea said last week that China's sanctions on U.S.-linked units of shipbuilder Hanwha Ocean (042660.KS) , opens new tab threatened to impact ambitious plans for shipbuilding cooperation between Seoul and Washington. "Attempts at intimidation will not stop the United States from rebuilding its shipbuilding base and responding appropriately to China's targeting of critical industrial sectors for dominance," Greer said in a statement. TRUMP SAYS TAIWAN COULD COME UP IN CHINA TALKS Asked by a reporter whether the U.S. might adjust its position on Taiwan independence in order to reach a trade deal with China, Trump said, "We're going to be talking about a lot of things. I assume that will be one of them, but I’m not going to talk about it now." Beijing has ramped up a campaign of military and diplomatic pressure on democratically governed Taiwan, which it views as its own territory. China has never renounced the potential use of force to bring Taiwan under its control. The United States is Taiwan's most important international backer and arms supplier despite the lack of formal diplomatic ties. Beijing regularly denounces any shows of support for Taipei from Washington. https://www.reuters.com/business/retail-consumer/trump-says-he-expects-fair-deal-with-china-vows-speedy-deliver-subs-australia-2025-10-20/

2025-10-20 20:20

TSX ends up 1% at 30,416.44, Nine of 10 major sectors notch gains Materials group gains 2.3% as gold rallies Canada offers tariff relief on some products TORONTO, Oct 20 (Reuters) - Canada's main stock index rebounded on Monday, with metal mining shares leading broad-based gains as concerns eased over an escalating global trade war. The S&P/TSX composite index (.GSPTSE) , opens new tab ended up 307.96 points, or 1%, at 30,416.44, after posting declines on Thursday and Friday. Sign up here. Wall Street indexes also rose as investors braced for a wave of corporate earnings. "After last week's volatility, Canadian equities are starting strong, supported by robust corporate results from the U.S. and positive trade developments between the U.S. and China," said Angelo Kourkafas, a senior global investment strategist at Edward Jones. "While near-term challenges persist, the limited market pullback reflects investor optimism for 2026." U.S. President Donald Trump said he expects to reach a fair trade deal with Chinese President Xi Jinping and downplayed risks of a clash between the countries over the issue of Taiwan. Canada offered tariff relief on some steel and aluminum products imported from the United States and China, a government document showed, in an effort to help domestic businesses battered by a trade war on two fronts. The materials group (.GSPTTMT) , opens new tab, which includes fertilizers and metal mining companies, gained 2.3% as the price of gold touched another record high. Shares of copper and gold exploration company NGEx Minerals Ltd (NGEX.TO) , opens new tab added 12.7%. Heavily weighted financials (.SPTTFS) , opens new tab advanced 0.8% and industrials (.GSPTTIN) , opens new tab were up 0.8%. Nine of 10 major sectors ended higher. Consumer staples (.GSPTTCS) , opens new tab was the exception, falling 0.7%. Shares of food and pharmacy retailer Loblaw Companies Limited (L.TO) , opens new tab ended 1.5% lower, snapping an eight-day winning streak. https://www.reuters.com/business/tsx-futures-climb-metal-gains-inflation-data-earnings-focus-2025-10-20/

2025-10-20 20:03

Investors see tough decisions ahead for new President Paz IMF help viewed as vital given current dire state of finances Debt payment crunch looms in March LONDON, Oct 20 (Reuters) - Investors welcomed the Bolivian presidential election win for centrist candidate Rodrigo Paz as markets reopened on Monday, but cautioned he now faces a major challenge fixing the economy, and will likely have to soften his resistance to IMF support. The victory of Paz, a senator from the Christian Democratic Party, in Sunday's run-off vote marked a historic shift for the South American nation, which has been governed almost continuously since 2006 by Bolivia's Movement to Socialism (MAS) party. Sign up here. Paz's moderate platform — pledging to maintain social programmes while boosting private sector-led growth — appeared to resonate with left-leaning voters who would normally vote for MAS, but economists fear it may not be radical enough given the country's plight. Inflation has accelerated to levels not seen since its mid-1980s crisis, the fiscal deficit stands at around 10% of GDP while depleted foreign exchange reserves and diminished gas exports mean the currency now trades at a huge discount to the official rate on the streets. "I don't see much alternative to an IMF programme, but how that comes together is the key question for the market," RBC BlueBay's Graham Stock said, referring to how Paz, 58, had expressed a reluctance during his campaign to deepen engagement with the Fund. Bolivia's bonds rose on Monday according to LSEG data, with the 2028 up 1.4 cents bid at 82 cents on the dollar - still with a yield above 21%. "On debt, I do think Bolivia will restructure," said Brian Seel, senior sovereign analyst at Artisan Partners, adding that estimates made using the official exchange rate widely underestimate the external debt burden. "Given the state of the economy, I think we are looking a multi-year effort to rebuild debt carrying capacity." Paz will take office on November 8. His party does not hold a majority in the legislature, meaning he will be forced to forge alliances to govern effectively, although it will now be dominated by pro-business centrist and right-leaning parties. Jefferies Managing Director Javier Kulesz said in a note it was "a big plus" for Paz, however, that the Congress will now be more ideologically aligned, even if still quite fragmented. The key, however, will be whether the public will accept the measures Paz will now need to prescribe. "Chances are he’ll get the traditional 100-day honeymoon period to push his agenda, but after that, things could get very tough," Kulesz said. Former Socialist president "Evo Morales continues to have his following, potentially becoming a source of political tension and street pressure once the adjustment starts to bite," he added. RESTRUCTURING REQUIRED Analysts at U.S. investment bank Citi said it was more a question of how fast Paz goes to the IMF, rather than if, as some sort of restructuring is now needed. Despite Paz's apparent ruling out of an IMF programme, an IMF official said on Friday that it had talked to both Paz and his election race rival, former president Jorge "Tuto" Quiroga, ahead of the vote. With the economy in disarray and barely enough foreign exchange reserves to cover two months of imports, others have warned the crunch could come in March when Paz's new government will face roughly $380 million worth of debt payments. Markets would favour a "front-loaded fiscal consolidation... alongside a front-loaded exchange rate realignment," analysts at JPMorgan added, saying both were essential to stabilising the economy. "The principal challenges to any adjustment programme arise from Bolivia’s difficult initial conditions and the uncertain level of public support for austerity measures," they said in a note on the election result. https://www.reuters.com/world/americas/investors-see-imf-support-crucial-bolivias-new-president-2025-10-20/

2025-10-20 19:10

Gold Reserve accuses advisers of conflict of interest Court officer switched auction winner recommendation to Elliott's Amber Energy Venezuela's lawyers also seek disqualification of court officer, advisers Lawyer for court officer Pincus said the process aimed to maximize value HOUSTON, Oct 20 (Reuters) - Toronto-listed miner Gold Reserve (GRZ.V) , opens new tab on Monday accused firms advising a U.S. court on the auction of Citgo Petroleum's parent of receiving some $170 million in fees from a bidder that was recommended as the winner of the process and parties that would obtain proceeds as a result. The auction of Venezuela-owned PDV Holding, parent of Houston-based refiner Citgo Petroleum, aims to compensate up to 15 creditors for debt defaults and expropriations in the South American country. Sign up here. The accusations are the latest twist in a process that has dragged on for nearly two years after three bidding rounds, and could threaten to slow it further before a final winner is selected. A Delaware court found PDV Holding liable for Venezuela's debts, including assets expropriated by the administration of the country's late president, Hugo Chavez, and billions of dollars in bonds defaulted on by state-owned oil company PDVSA. The court on Monday discussed the fees in a hearing following Gold Reserve's motions earlier this month to disqualify a court officer and the judge overseeing the auction, in addition to advising firms Weil, Gotshal & Manges, and Evercore (EVR.N) , opens new tab over the alleged conflict of interest. "Normal folks would reasonably question the impartiality of advisers who have received $170 million in fees from the very party whose bids they are evaluating in an auction process," Michael Bowe, counsel for Gold Reserve, told the court. Court officer Robert Pincus in August switched his recommendation for the auction's winner to Elliott Investment Management's Amber Energy from Gold Reserve subsidiary Dalinar Energy, prompting objections from rival bidders and creditors. The court is set to hear final arguments on the competing bids on Tuesday. Gold Reserve is now arguing that Weil represented Elliott while the Citgo sale was ongoing, and that the two advising firms had relationships with some holders of Venezuelan bonds standing to receive auction proceeds under Amber's proposal. Lawyers representing Venezuela also filed a motion this month to disqualify Pincus and the two advising firms. Most fees identified by Gold Reserve belong to the advisers' relationship with bondholders, according to testimony presented in court. Elliott and its affiliates paid some $4.4 million to the advisers worldwide in a five-year period, a lawyer for Pincus said. Weil, Gotshal & Manges and Evercore did not reply to requests for comment. Andrew Rossman, counsel for Amber, said in the hearing that the idea that the company was favored in the process "is completely refuted by the facts." He added: "Amber's bids have been rejected four times. My client still bears the scars of the first rejection." Pincus' counsel said the sale process was run effectively to find a value-maximizing transaction. "We have no loyalty to any particular bidder," he said. Two of the creditors in the case, Crystallex and ConocoPhillips (COP.N) , opens new tab, also characterized the auction as fair and transparent. https://www.reuters.com/world/americas/gold-reserve-says-fees-totaling-170-million-jeopardize-citgo-auction-2025-10-20/

2025-10-20 18:58

PARIS, Oct 20 (Reuters) - One person has died after a tornado struck the Val d'Oise area just to the north of Paris, said French Interior Minister Laurent Nunez on Monday. Nunez said he was monitoring the situation closely, and added several others had been seriously injured as a result of the tornado. Sign up here. https://www.reuters.com/business/environment/tornado-hits-area-north-paris-leaving-one-person-dead-2025-10-20/