2025-12-11 20:07

Henrique Braun to become Coca-Cola CEO in March Braun's challenge is to expand low-sugar drinks, manage costs Coke outperforms Pepsi amid tough market conditions Dec 11 (Reuters) - Coca-Cola's (KO.N) , opens new tab decision to make Henrique Braun its next CEO is a bet on the company veteran's experience in Latin America and China to grow the brand in new markets, appeal to cash-strapped consumers and develop healthier options as tastes change. The 57-year-old American, who was raised in Brazil, is set to take charge in March as the maker of Coke, Sprite and Fairlife milk has been tweaking the sizes of its packs, and reshaping its offerings, partly through acquisitions, to keep low-income consumers buying and appeal to those who are increasingly health conscious. Sign up here. Despite consumers staying cautious on spending, Coke is in a position of relative strength, with its stock up about 11% year to date, versus a rise of just 2% in the broader S&P 500 consumer staples index (.SPLRCS) , opens new tab. Main rival PepsiCo (PEP.O) , opens new tab has seen shares fall 2% so far this year. Analysts and investors expect Braun to keep the $302 billion market cap beverage company on stable footing. "This is evolution not revolution," said Brian Mulberry, portfolio manager at Zacks Investment Management, which holds shares of Coke. "I don’t see any red flag warnings that would necessitate a radical change." One of the biggest challenges is likely to be continued pricing pressure. "The way he can make everyone happy is to control the supply chain to make sure costs aren’t spiraling out of control to require price increases," Mulberry added. Current CEO James Quincey, who took the helm in 2017, reversed sales declines at the company, and the stock has grown more than 60% under his tenure. Quincey inherited a slimmed-down Coke that had mostly shed its vast bottling network , opens new tab, allowing it to focus instead on new products and marketing. PepsiCo's shares have risen about 35% since its CEO, Ramon Laguarta, was appointed in 2018. Analysts also say Braun's challenge will be to accelerate the move to low-sugar and functional beverages like probiotic sodas and electrolytes without sacrificing margins and to grow volumes, all while navigating inflation and tariffs that have ramped up costs. Part of that acceleration is likely to be continuing Quincey's acquisition spree, which included high-protein milk company Fairlife and sports drink brand Body Armor. "After Quincey's success in adding (more than) 10 billion-dollar brands during his nine-year tenure, acquisitions will likely remain a focus for Braun as well," Morningstar analyst Dan Su wrote in a note. Coke is reviewing options including a sale of British coffee chain Costa which it bought in 2018 for over $5 billion, Reuters reported in August. The CEO move, announced late on Wednesday, marks yet another shake-up among CEOs across the consumer packaged goods space as it reels from a demand slowdown, shifting spending habits and biting U.S. tariffs. Rival PepsiCo, by contrast, is reviewing its supply chain and cutting costs after facing pressure from activist hedge fund Elliott Management. That could impact Coke, too. "Pepsi will probably lower prices due to pressure from an activist investor, which will put pressure on Coke's margins as well," if Coke has to respond with its own cuts, said Bruce Winder, retail analyst and industry expert. https://www.reuters.com/sustainability/boards-policy-regulation/coca-cola-bets-incoming-chief-brauns-global-experience-amid-shift-low-sugar-2025-12-11/

2025-12-11 19:59

Currencies rise 1.2%, stocks climb 2.4% Politics in Brazil and Chile in the spotlight Argentina's dollar bonds edge higher Turkey cenbank cuts rates 150 pts to 38% on 'improving' signals Peru's rate decision at 18:00 ET Dec 11 (Reuters) - Latin American assets climbed on Thursday, with regional currencies on track for their strongest session in eight months as the dollar weakened following an interest rate cut by the U.S. Federal Reserve. Higher-yielding currencies in the emerging markets often benefit when the Fed cuts rates, as investors seek alternative destinations to park capital. Sign up here. The MSCI index for Latin American currencies (.MILA00000CUS) , opens new tab rose 1.24%, its strongest level since April 11, while the stocks gauge (.MILA00000PUS) , opens new tab jumped 2.4% - its best performance since August 22. Brazil's real led the gains after its central bank left interest rates at a near two-decade high on Wednesday and stuck to its hawkish tone. It was last up 1.2% against the dollar. The Chilean peso also firmed 1%, extending its strong run in the week leading up to the presidential run-off on Sunday, where far-right candidate Jose Antonio Kast is expected to win. Peruvian equities (.MXNUAMPESCPGPE) , opens new tab jumped 1.6% to an all-time high, while the currency sol was largely unchanged as the country braced for a rate decision, likely to result in a "hold" verdict. POLITICS, DATA TEMPER RISK IN BRAZIL Brazil's Bovespa index (.BVSP) , opens new tab rose 0.4% having traded in tight ranges this week after Senator Flavio Bolsonaro, the eldest son of former President Jair Bolsonaro, confirmed his intention to run for president next year, dashing hopes for a more market-friendly contender such as Sao Paulo Governor Tarcisio de Freitas. "Political volatility is a reason not to have as large a trade in Brazil as you might normally want, but the macroeconomic story is still very favorable," said David Hauner, head of global emerging markets fixed income strategy at BofA Global Research. "Brazil is the one big emerging market that has a fiscal issue. And a favorable election scenario is one where you get an administration that is going to be focusing on some fiscal consolidation." Data on Thursday showed retail sales volumes unexpectedly rose in October, despite signs of a slowdown in Latin America's largest economy amid high interest rates. Separately, Mexican equities (.MXX) , opens new tab climbed 2.5% to an all-time high. The Senate on Wednesday approved tariff hikes of up to 50% on imports from China and several other Asian countries, aiming to bolster local industry despite opposition from business groups. Argentina's dollar-denominated bonds were largely stable, a day after the government raised $1 billion through a bond sale as it prepares for an eventual return to international capital markets. The main stock index (.MERV) , opens new tab fell 1.1% after data showed the monthly inflation rate edged up more than expected in November. The peso stayed largely steady. Meanwhile, an Inter-American Development Bank report said Latin America and the Caribbean could lift per-capita output by 11% and cut inequality by 6% by making markets more competitive. The report cited weak competition as a central reason for decades of inconsistent productivity. Elsewhere, Turkey's central bank lowered its policy rate by 150 basis points to 38%, cutting at the higher end of expectations, amid signals that disinflation is back on track after summer price pressure. The main BIST 100 share index (.XU100) , opens new tab rose 0.4%, while the local currency lira was little changed. Key Latin American stock indexes and currencies: https://www.reuters.com/world/americas/latam-currencies-rally-fed-cut-brazils-real-leads-gains-2025-12-11/

2025-12-11 19:38

Heavy downpours triggered by atmospheric river storm Tens of thousands under evacuation orders in Washington state Dozens of roads, rail lines closed and washed out Most major Canadian highways to Vancouver cut off SNOHOMISH, Washington, Dec 11 (Reuters) - Heavy rains drenching the Pacific Northwest triggered flooding on Thursday across much of the region from Oregon north through Washington state and into British Columbia, closing dozens of roads and prompting the evacuations of tens of thousands of people. The intense downpours began earlier in the week, swept into the region by a storm system meteorologists call an atmospheric river, a vast airborne current of dense moisture funneled inland from the Pacific Ocean. Sign up here. Western Washington state bore the brunt of the storm, with flood watches posted across the Cascade and Olympic mountains and Puget Sound, as well as for a northern slice of Oregon, a region home to some 5.8 million people, according to the U.S. National Weather Service. The same storm system brought heavy showers and flooding to western Montana and an edge of northern Idaho. Roughly 100,000 residents in western Washington were under "Level 3" evacuation orders urging them to immediately move to higher ground, the bulk of them in rural Skagit County north of Seattle, said Karina Shagren, spokesperson for the state emergency management division. About 3,800 evacuees were believed to be in need of temporary shelter, Skagit County emergency chief Julie de Losada said. Shagren said swift-water rescue teams had been deployed across the region, but there were no reports of casualties or of people missing or stranded in the flooding. The worst flooding was reported along the Skagit, Snohomish and Puyallup rivers. More than 30 highways and dozens of smaller roads were closed due to flooding across the region, state officials said. Several lengthy segments of the BNSF Railway, a major freight line serving the Pacific Northwest, were washed out or closed due to flooding, the company said, citing reported rainfall of 10 to 17 inches or more in many areas. So far, the walls of flood-control levees and dikes were holding firm. But officials said they were bracing for the Skagit River to crest at 2 feet above record levels on Thursday night near the Skagit County towns of Mount Vernon and Burlington, potentially topping levees and testing their strength for the first time since repairs were made following the last major flood in that area in 2021. "The situation is unpredictable, it's dangerous and we don’t know exactly what will happen when those floodwaters come through," said Robert Ezelle, director of the state's emergency management division. The Weather Service said the storm had dumped 5 to 10 inches (12.7 to 25.4 cm) of rain over wide swaths of the Pacific Northwest, with 72-hour totals reaching more than a foot as of Thursday along the western flanks of the Cascades. "It's a lot of water," Shagren said, even for a region accustomed to soggy weather conditions. Washington Governor Bob Ferguson issued a statewide emergency declaration on Wednesday to hasten federal disaster aid amid forecasts of catastrophic flooding and rivers expected to crest at historic levels. VANCOUVER HIGHWAYS SHUT DOWN In British Columbia, five of the six Canadian highways leading to the Pacific port city of Vancouver were shut down due to floods, falling rocks and the risk of avalanches, local authorities said on Thursday. "This situation is evolving and very dynamic," said the Transport Ministry of British Columbia, the province where Vancouver - the country's largest port - is located. Access to Vancouver relies largely on a limited highway and railway network that crosses the Rocky Mountains, making it vulnerable to severe weather. In late 2021, an atmospheric river dumped a month's worth of rain in two days on southern British Columbia, triggering floods and mudslides that killed four people, cut off rail access to Vancouver and caused more than C$500 million ($363.35 million) in damage. The atmospheric river storm was expected to subside later on Thursday, but the Weather Service warned that lingering rains continued to pose a flood threat across the rain-saturated region. While such storms are not uncommon on the U.S. Pacific Coast, meteorologists say they are likely to become more frequent and extreme over the next century if planetary warming from human-induced climate change continues at current rates. https://www.reuters.com/sustainability/climate-energy/floods-falling-rocks-force-closure-major-highways-vancouver-2025-12-11/

2025-12-11 19:22

EPA plans to delay Biden-era vehicle pollution rule enforcement Automakers argue pollution rule unachievable without more EVs EPA reconsiders standards amid automaker concerns on costs and feasibility WASHINGTON, Dec 11 (Reuters) - The U.S. Environmental Protection Agency is planning to delay enforcement of a Biden-era regulation requiring significant cuts in air pollution from vehicles, a senior agency official told Reuters. In April 2024, the EPA finalized a rule requiring significant reductions in so-called "criteria pollutants" emitted from passenger and commercial vehicles from the 2027 through 2032 model years. As part of a planned delay, the EPA is considering keeping the 2026 standard in place for two additional years to give the agency time to reconsider the Biden-era standards and how the agency sets standards, the official added. Sign up here. The EPA has separately proposed revoking the scientific finding that justified setting greenhouse gas emission standards for vehicles and engines. The Alliance for Automotive Innovation, a trade group representing General Motors, Toyota Motor, Volkswagen, Ford, Stellantis, Hyundai and others, in September told EPA the criteria pollutant rule is "unachievable without significant increases in EV market share, while at the same time adding hundreds of dollars of additional costs to all internal combustion engine vehicles. Several changes should be made to these regulations to produce a more appropriate, cost-effective criteria emission standard." EPA Administrator Lee Zeldin in March announced the plan to reconsider the agency's 2024 rules that would cut passenger vehicle fleetwide tailpipe emissions by nearly 50% by 2032 compared with 2027 projected levels. The EPA previously forecast that between 35% and 56% of new vehicles sold between 2030 and 2032 would need to be electric in order to comply. Zeldin told reporters this week automakers told the agency the EPA requirements "were causing adverse impacts... By heeding those concerns, it's going to have a positive impact on the auto industry, on auto jobs and bringing down the cost of vehicles and increasing consumer choice." The Biden rules require a 50% reduction in criteria pollutants like nitrogen oxides through 2032 for light vehicles and 58% cut for medium-duty vehicles. EPA last year estimated $13 billion in annualized benefits due to reduced emissions of criteria pollutants that contribute to the formation of soot and smog. The EPA is reviewing if automakers should be able to continue to use electric vehicles to meet the standards and whether the agency should continue to allow credit banking and trading. Last week, the Transportation Department proposed ending credit trading as part of a significant rollback of fuel economy standards through 2031. The automakers also want EPA to implement revised GHG standards as a backstop in case motor vehicle greenhouse gas standards were retained or reinstated in some way. EPA is also considering some changes to heavy-duty rules including on warranty obligations and useful life requirements. https://www.reuters.com/sustainability/climate-energy/us-epa-considering-two-year-delay-enforcing-biden-vehicle-pollution-rule-2025-12-11/

2025-12-11 18:56

Dec 11 (Reuters) - J.P. Morgan (JPM.N) , opens new tab arranged a short-term bond for Galaxy Digital Holdings on the Solana blockchain, the bank said on Thursday, marking a significant step in the broader institutional adoption of digital assets. Cryptocurrency exchange Coinbase Global (COIN.O) , opens new tab and investment management firm Franklin Templeton purchased the commercial paper, a short-term and unsecured debt instrument. Sign up here. The $50 million debt deal comes at a time when tokenization is rapidly increasing, especially in the U.S., helped by the passage of new regulations. President Donald Trump's administration has eased regulation of the broader crypto industry, paving the way for a boom in the valuation of companies in the sector and the rapid growth of crypto-related securities. The deal is among the earliest that uses blockchain for the issue and service of securities, and comes as traditional finance begins to intersect with the new technology. Blockchain platforms, such as Solana, which was founded in 2017 and launched its mainnet three years later, have seen a keen interest from the legacy finance institutions due to their high speed and low transaction costs. "In the first half of next year, we intend to build on this momentum by exploring how this structure and J.P. Morgan's role in it can be expanded, not just in terms of the investor and issuer base but also security type," said Scott Lucas, head of Markets Digital Assets at J.P. Morgan, in an interview with Reuters. "We're confident there is strong demand for this type of innovation, and we're committed to supporting our clients and the market as we move forward." Prior issuances on J.P. Morgan's private, permissioned blockchain platform include a municipal securities offering for the City of Quincy in April 2024 and a U.S. commercial paper issuance for Oversea‑Chinese Banking Corporation in August 2025. J.P. Morgan acted as the arranger in the deal and created the on-chain USCP token. Both the issuance and redemption proceeds will be paid in USDC, a stablecoin issued by Circle (CRCL.N) , opens new tab. Stablecoins are cryptocurrencies designed to track the value of a real‑world currency, typically the U.S. dollar. https://www.reuters.com/technology/jp-morgan-harnesses-blockchain-debt-issuance-amid-digital-asset-adoption-boost-2025-12-11/

2025-12-11 17:21

Canada posts trade surplus of C$153 million in September This is the first ever trade surplus since January 2025 Canada's surplus with U.S. at its highest level since February Total exports in September grew by 6.3% to C$64.23 billion OTTAWA, Dec 11 (Reuters) - Canada posted a small monthly international trade surplus in September, reversing a trend of seven consecutive months of deficits, data showed on Thursday. It registered a marginal trade surplus of C$153 million ($110.92 million) in September, following a C$6.43 billion deficit in the prior month, Statistics Canada said. Sign up here. This was the first ever surplus that Canada has posted since President Donald Trump threatened and later imposed tariffs on critical sectors which choked significant exports to the U.S., Canada's biggest trading partner. The bulk of the surplus was driven by a 44% jump in Canada's trade surplus with the U.S., StatsCan's data showed. The September trade data, which was due in November, was delayed as information for Canadian exports to the U.S. was unavailable due to a 43-day government shutdown in the U.S. Analysts polled by Reuters had forecast the trade deficit at C$4.5 billion for September. Economists said the trade numbers show that Canada's international merchandise trade was finally starting to normalize. "Overall story is really positive," said Prince Owusu, Senior Economist with Export Development Canada. "It seems to suggest that the trade flow with the United States is beginning to stabilize," he said, adding that the trend of diversification from the U.S. that started is also continuing. Canada's total exports in September grew by 6.3% to C$64.23 billion, rebounding from a drop of 3.2% in August, and were driven by higher exports in nine out of 11 product sections. This was the largest percentage increase since February 2024. This was led by U.S. exports that grew by 4.6% and exports to countries other than the U.S. growing by 11%, StatsCan said. Exports of metal and non-metallic mineral products and aircraft and transportation equipment and parts led the gains with an over 20% rise in exports. In volume terms, total exports rose 4.1%, the statistics agency said. Total merchandise imports dropped by 4.1% in September to C$64.08 billion. SURPLUS WITH THE U.S. Exports to the U.S. grew to C$45.84 billion from C$43.83 billion in August, helped by outbound shipments of aircraft, light trucks and unwrought gold, StatsCan said. The U.S. accounted for over 71% of Canada's exports in September. Imports from the U.S. declined 1.7% in September, a third consecutive monthly decrease, taking Canada's trade surplus with the U.S. to its highest level since February. Higher shipments of unwrought gold, crude oil and aircraft led the jump in exports to countries other than the U.S. Imports from countries other than the U.S. dropped 7.3%. Canada's trade deficit with countries other than the United States has narrowed sharply, posting the lowest deficit since October 2024, Statistics Canada said. The Canadian dollar firmed in early trade and was trading up 0.2% to 1.3767 to the U.S. dollar, or 72.64 U.S. cents. Yields on the two-year government bonds were down 0.2 basis points to 2.524%. ($1 = 1.3794 Canadian dollars) https://www.reuters.com/world/americas/canadas-posts-trade-surplus-september-beating-expectations-deficit-2025-12-11/