2025-10-09 14:18

MEXICO CITY, Oct 9 (Reuters) - Mexico's annual inflation rate quickened in September at a pace slightly below expectations, official data showed on Thursday, but remained within the central bank's target range of 3% plus or minus a percentage point. Consumer prices in Latin America's second-largest economy rose 3.76% in the year through September, according to national statistics agency INEGI, below the 3.79% increase forecast by economists in a Reuters poll. Consumer prices rose 3.57% in the previous month. Sign up here. The inflation rate remained within the central bank's target range for the third month in a row, bolstering expectations that policymakers would continue to cut interest rates. "Current conditions support our expectation of a Banxico benchmark rate of 7.00% at year-end and 6.50% in 2026," analysts at the brokerage of local bank Banorte said in a note. Mexico's central bank, also known as Banxico, lowered borrowing costs last month for the 10th consecutive time, with its key interest rate reaching its lowest level since 2022 at 7.5%. Consumer prices rose 0.23% in September on a monthly basis, according to non-seasonally adjusted figures, slightly below market forecasts. "The monthly increase was mainly due to the sharp seasonal rise in education prices, which recorded the largest monthly increase since 2008," Citi's Banamex said in a note. Meanwhile, the closely watched core index, which strips out some volatile food and energy prices, increased 0.33%, compared with expectations of a 0.32% increase. Sticky core inflation continues to be a concern that could shape future Banxico decisions, according to analysts, while policymakers also closely monitor ongoing global trade tensions and sluggish economic growth in the Latin American country. https://www.reuters.com/world/americas/mexicos-annual-inflation-rises-september-remains-within-target-range-2025-10-09/

2025-10-09 13:51

New York Fed chief sees no risk of imminent recession Fed cut rates last month to balance inflation, job market risks Williams emphasizes central bank's independence amid political pressure Oct 9 (Reuters) - New York Federal Reserve President John Williams backs more interest rate cuts this year given the risk of a further slowdown in the labor market, according to an interview published by the New York Times on Thursday. Williams, the Fed vice chair and a permanent voting member of the U.S. central bank's rate-setting Federal Open Market Committee, added, however, that the current labor market slowdown did not point to an imminent recession. Sign up here. "My own view is that, yes, we would have lower rates this year, but we'll have to see exactly what that means," Williams told the newspaper. When asked if he anticipated two more 25-basis-point cuts to the Fed's policy rate, currently set in the 4.00%-4.25% range, Williams said, "when I approach future meetings, if we get information that is broadly consistent with my outlook - which is for inflation to move up a bit to around 3% and for the unemployment rate to gradually move up a little bit - then I think the path for policy should evolve the way we expect." Williams noted that the Fed is trying to balance policy to lower inflation, which remains above the central bank's 2% target, while at the same time offering support for a job market that's exhibiting signs of weakness. With the current stance of monetary policy, "I do feel like we are well-positioned in terms of having policy that's modestly restrictive and that is helping us get to 2% inflation on a sustained basis." Williams, however, added that it would be very damaging to the economy and the Fed's credibility if inflation were allowed to go well above the 2% level without the central bank taking steps to lower it. "But we need to do it in a way that does our best to minimize the risk of the labor market cooling more sharply." The U.S. central bank cut its policy rate by a quarter of a percentage point at its September 16-17 meeting, a move Fed Chair Jerome Powell and others characterized as a way to leave policy tight enough to still restrain the economy and put downward pressure on inflation, while offering some support for the job market. TARIFFS' IMPACT ON INFLATION LESS THAN EXPECTED Williams' comments are in line with the minutes of the September 16-17 meeting that were published on Wednesday. According to the minutes, Fed officials last month agreed that risks to the U.S. job market had increased enough to warrant a rate cut, but they remained wary of high inflation amid a debate within the central bank over how much borrowing costs were weighing on the economy. The Fed's next policy meeting is slated for October 28-29, with another quarter-percentage-point rate cut anticipated by financial markets. In his interview with the New York Times, Williams said President Donald Trump's trade tariffs were not putting as much upward pressure on inflation as many observers had expected. "Tariffs have boosted inflation by maybe a quarter of a percentage point, up to a half point, in terms of the price level," he said, adding that "underlying inflation seems to be moving gradually lower toward 2%." "I don't see any signs of second-round effects or factors that could be amplifying the effects of tariffs on inflation," Williams added. He also noted that a changing economy is taking some pressure off of inflation. "I think there's more downside risks to the labor market and employment, and that is something that takes some of the upside risk off of inflation." Williams also said he cared deeply about the independence of the Fed, which has come under intense pressure from the White House this year to deliver deep rate cuts. President Donald Trump also has attempted to remove Fed Governor Lisa Cook from her position. https://www.reuters.com/business/feds-williams-backs-more-rate-cuts-this-year-due-labor-market-slowdown-risks-he-2025-10-09/

2025-10-09 12:49

Oct 9 (Reuters) - ARM Energy Holdings said on Thursday it has reached a final investment decision on its $2.3 billion Mustang Express Pipeline project in Texas, along with its partner Pacific Investment Management Company. ARM, an energy marketing firm, said the project benefits from a long-term agreement with Sempra (SRE.N) , opens new tab for shipment of natural gas for its Port Arthur LNG Phase 2 project, which recently achieved its own final investment decision. Sign up here. Earlier this month, Sempra said it would sell a 45% stake in its infrastructure unit for $10 billion, and has approved a $14 billion expansion of Port Arthur LNG project in Texas. The U.S. is the world's top LNG exporter with total capacity expected to reach 115 million MTPA this year, according to the country's Energy Information Administration. The industry has enjoyed strong global demand and policy support from President Donald Trump, who returned to office in January promising to unleash U.S. energy. He also reversed a freeze on new export permits. The pipelines, which will be constructed and operated by ARM, will have a total capacity of 2.5 billion cubic feet per day (bcf/d) and are expected to be completed in late 2028 or early 2029. The 236-mile pipeline will include three segments - Mustang Mainline, Cougar lateral and the Golden triangle where the mainline will connect Katy Hub to Port Arthur. https://www.reuters.com/business/energy/arm-energy-invest-23-billion-mustang-express-pipeline-texas-2025-10-09/

2025-10-09 12:38

SAO PAULO/BRASILIA, Oct 9 (Reuters) - Brazil's government is weighing alternatives to shore up the federal budget, which could involve tweaking tax rates, after Congress killed a measure deemed crucial to hitting its fiscal targets, Finance Minister Fernando Haddad said on Thursday. The government had expected a positive fiscal impact of 14.8 billion reais ($2.8 billion) this year and 36.2 billion reais in 2026 from the proposed changes to taxation of financial assets that expired on Wednesday without reaching a vote. Sign up here. Those figures, combining fresh revenue and spending limits, were seen as key to ensuring the government meets its goal of erasing its primary deficit this year and generating a primary surplus equal to 0.25% of gross domestic product in 2026. Speaking to reporters, Haddad hinted the government could turn to tax increases that would depend only on President Luiz Inacio Lula da Silva. Senator Randolfe Rodrigues, head of the government's coalition in Congress, said on Wednesday that a change to the IOF financial transactions tax was an option. The government's changes to the IOF tax earlier this year, including an initial proposal to impose a higher rate on funds invested abroad, sent shudders through financial markets and triggered a drawn-out fight with Congress. Brazil's Supreme Court has ruled that the president has the authority to change certain tax rates, Haddad said, "and that gives us comfort to reach the end of the year." Haddad also noted that talks with Lula over new measures always involve several alternatives. "We have time, and we're going to use it to carefully evaluate each option," he said. GOVERNMENT TO DISCUSS ISSUE NEXT WEEK Later on Thursday, the Finance Ministry announced Haddad would no longer travel to Washington next week for meetings of the International Monetary Fund and the G20 so he could attend to engagements at home. Some taxes in Latin America's largest economy are considered regulatory in nature and can therefore be changed unilaterally by presidential decree, such as the IOF, as well as import and industrialized products taxes. Earlier on Thursday, President Lula said in an interview with a local radio station that he had asked his team not to worry about a setback in Congress. He said next week the government will discuss how the financial system, especially fintechs, can "pay what it owes." After intense backlash to raising the IOF rate this year, Lula's leftist government watered down the increase, which was implemented with the backing of the Supreme Court. To preserve the fiscal gain it had initially sought, it introduced the proposed investment tax changes that Congress failed to vote on. "If the measure is rejected or loses validity, it's natural for the IOF to return to the table as an alternative. We have to close the gap," Senator Rodrigues said on Wednesday. The main source of additional revenue in the rejected measure came from limiting how companies can use tax credits. But the proposal, which changed the taxation system for financial investments starting next year, also increased charges this year on digital banks, payment institutions, and a popular form of shareholder remuneration in Brazil known as "interest on equity". The government had also proposed raising taxes on online betting firms, but later agreed to drop that provision in an effort to secure passage of the measure. On the spending side, the proposal included a program aimed at keeping students in high school in constitutionally mandated education spending and tightened rules for sickness benefits and payments to fishermen during environmental fishing bans. https://www.reuters.com/world/americas/brazil-will-take-time-evaluate-alternatives-budget-haddad-says-2025-10-09/

2025-10-09 12:18

NAIROBI, Oct 9 (Reuters) - The Kenyan, Nigerian and Zambian currencies are expected to be broadly unchanged against the dollar in the next week to Thursday, while Ghana's may gain, traders said. KENYA Kenya's shilling is seen stable as dollar appetite from the energy sector matches inflows from remittances and tea exports. Sign up here. Commercial banks quoted the shilling at 129.00/129.40 to the dollar, unmoved from last Thursday's close. NIGERIA Nigeria's naira is also expected to trade around current levels. The naira was quoted at 1,472 to the dollar on the official market on Thursday and was changing hands at 1,490 to the dollar in street trading . "We have seen the currency trade at around 1,465/1,470 levels this week. With this, we are getting signals that the central bank is comfortable ... where the market is right now," one trader said. ZAMBIA Zambia's kwacha is likely to be steady as companies sell hard currency to pay taxes. On Thursday the kwacha was quoted at 23.18 per dollar from 23.99 a week ago. "Withholding tax is due next week and this should support the local currency," a financial analyst said. GHANA Ghana's cedi is seen strengthening due to dollar inflows and central bank auctions. LSEG data showed the cedi trading at 12.30 to the dollar on Thursday, compared to 12.45 at last Thursday's close. "The cedi is likely to post some gains against the dollar on the back of improved interbank liquidity, following the central bank's announcement of plans to sell up to $1.15 billion in market interventions in October," said Andrews Akoto, head of trading at Absa Bank Ghana. "We expect firm (dollar) demand from the energy, services and manufacturing sectors to be offset by offshore FX inflows and a liquid local interbank market," he added. https://www.reuters.com/world/africa/africa-fx-most-currencies-seen-stable-2025-10-09/

2025-10-09 12:12

Elettrica EV to launch next year Shares tumble after new financial targets announced Ferrari shifts to less ambitious electrification strategy Plans four new models per year, new lifestyle stores MARANELLO, Italy, Oct 9 (Reuters) - Shares in luxury carmaker Ferrari (RACE.MI) , opens new tab tumbled as much as 16% on Thursday on disappointment over new long-term financial targets, taking the shine off the company's unveiling of the technology behind its first electric car. The share price drop erased more than 12 billion euros ($13.9 billion) from Ferrari's market capitalisation. Sign up here. Company executives gathered at Ferrari's headquarters in Maranello in northern Italy with the focus on providing details of the new EV, called the Elettrica, as well as its business plans for the rest of the decade. The Elettrica is due to go on sale next year, though the company stressed that petrol and hybrid vehicles will remain at the heart of its lineup until 2030. But Ferrari's leadership faced questions over financial targets for the period until 2030. DISAPPOINTING TARGETS, SCALING BACK ELECTRIC AMBITIONS "Ferrari's new 2030 guidance falls below Citi and consensus expectations," analysts at Citi said in a note. The automaker set a revenue target of 9 billion euros for 2030, an increase on its 7.1 billion euro forecast for this year, but a less ambitious figure than the market had been hoping for. "We want to make sure that we keep delivering on our promises," CEO Benedetto Vigna told analysts, referring to the targets. In the event in Maranello, Ferrari revealed the Elettrica's production-ready chassis - a car base, with battery pack and electric motors - but has not yet determined its price. Ferrari also shifted to a less ambitious approach to electrification. It now aims for a 2030 lineup made up of 40% internal combustion engine (ICE) models, 40% hybrids and 20% fully-electric. This marks a change from its 2022 plan, which had targeted 40% EVs, 40% hybrids and 20% ICE models in 2030. The unveiling of the inner workings of Ferrari's maiden electric car marks a milestone for the company in an auto industry that has been grappling with the transition from the internal combustion engine to the electric battery for a number of years. Ferrari said it would launch an average of four new models per year between 2026 and 2030, maintaining the steady rhythm that has helped it stimulate the interest of its wealthy clients and grow its customer base. The 1,000 horsepower, four-plus seat, four-door Elettrica complements Ferrari's traditional petrol and newer hybrid models. NEW LIFESTYLE STORES SET TO OPEN All strategic EV components, including high-voltage battery packs, e-axles and inverters, are developed and produced in-house at Ferrari's new "e-building" facility in Maranello. Sources told Reuters earlier this year that Ferrari does not plan to launch a second EV before 2028, citing weak demand for high-performance electric luxury cars. Ferrari's active client base has grown by around 20% since 2022, reaching 90,000. To deepen engagement, it plans to open new "Tailor Made" centres in Tokyo and Los Angeles in 2027 to help customers to add personal touches to their vehicles. It reaffirmed its lifestyle strategy expansion, with flagship stores planned in London and New York in 2026, and a broader range of luxury goods and experiences for both owners and fans of the brand. ($1 = 0.8610 euros) https://www.reuters.com/sustainability/climate-energy/elettrica-ev-launch-marks-ferraris-push-20-electric-lineup-by-2030-2025-10-09/