2025-10-29 20:04

NEW YORK, Oct 29 (Reuters) - At least two U.S. judges on a panel considering whether Argentina must pay investors $16.1 billion after seizing control of state-owned oil company YPF (YPFDm.BA) , opens new tab in 2012 questioned on Wednesday whether the case belonged in the United States. The judges were part of a three-judge panel of the 2nd U.S. Circuit Court of Appeals in Manhattan that on Wednesday reviewed Argentina's bid to set aside a trial judge's September 2023 award to two minority shareholders of YPF. Sign up here. Argentina has argued the case should have been heard at home, and questioned the judge's interpretations of Argentine law. Burford Capital (BURF.L) , opens new tab has funded much of the litigation and could receive billions of dollars if the award were upheld. Its shares fell more than 10% after the two judges made their comments. https://www.reuters.com/business/energy/us-judges-question-whether-argentina-ypf-case-belongs-us-2025-10-29/

2025-10-29 20:02

Argentina appealed award over YPF nationalization Judges question whether dispute belonged in United States Litigation funder Burford's shares tumble Case could affect Milei's bid to remake Argentine economy NEW YORK, Oct 29 (Reuters) - A U.S. appeals court on Wednesday signaled a willingness to set aside a $16.1 billion judgment against Argentina for seizing control of state-owned oil company YPF (YPFDm.BA) , opens new tab in 2012, because the case didn't belong in the United States. Two judges on a three-judge panel of the 2nd U.S. Circuit Court of Appeals in Manhattan expressed sympathy for Argentina's argument that the case should have been heard at home, where local judges could interpret local law. Sign up here. Argentina is seeking to overturn U.S. District Judge Loretta Preska's September 2023 award to two former shareholders of YPF, Petersen Energia Inversora and Eton Park Capital Management, for alleged losses stemming from YPF's nationalization. "It does have a feel like this should have been in Argentina," Circuit Judge Denny Chin told Paul Clement, a lawyer for Petersen. "Here we are trying to figure out what these Argentina cases, Argentine statutes are saying," Chin added. "The judgment is against the republic for actions taken as a republic. If you were to flip it and put the United States in their shoes in Argentina, how would we be feeling about letting an Argentine court decide issues against the United States under American law?" If the $16.1 billion award were set aside--which a lawyer for Argentina said has grown to $18 billion with interest--it would be a defeat for UK-based Burford Capital (BURF.L) , opens new tab, which is funding the litigation and would receive much of the award. Burford's share price fell as much as 15% in New York after Chin and Circuit Judge Jose Cabranes questioned whether the lawsuit belonged elsewhere. Circuit Judge Beth Robinson also sat on the panel. ARGENTINA, MILEI FEAR BIG AWARD COULD HURT ECONOMY Argentina and its President Javier Milei, whose party won a decisive victory in Sunday's midterm legislative elections, believe a big award could cripple the country's economy, which has long been overburdened by debt and triple-digit inflation. Milei, a free-market libertarian, has been slashing public spending and jobs, reducing monthly inflation and has given Argentina its first budget surplus in 14 years. He also has support from U.S. President Donald Trump, who offered a potential $40 billion bailout, including a $20 billion currency swap and $20 billion credit line. The appeal concerns Argentina's 2012 decision to expropriate 51% of YPF's shares from Spain's Repsol (REP.MC) , opens new tab for about $5 billion without making a tender offer to Petersen and Eton Park, respectively YPF's second- and third-largest investors. Argentine President Cristina Fernandez de Kirchner at the time said YPF, which had been privatized in 1993, should be re-nationalized because it failed to produce enough oil and natural gas to keep up with local demand. Preska found that Argentina breached its obligations, and ordered that it pay $14.39 billion to Petersen and $1.71 billion to Eton Park. Those sums reflected $8.43 billion of damages, plus $7.67 billion of prejudgment interest at an 8% rate. ARGENTINA SEPARATELY APPEALING YPF TURNOVER ORDER Robert Giuffra, a lawyer for Argentina, told the appeals court the judgment was "literally life-threatening to the country," and said Preska "made up an unprecedented remedy, not authorized by Argentine law." He also said the damages were inflated, representing 45% of Argentina's overall budget for 2024, saying it would be like ordering the United States to pay more than $2 trillion based on an equivalent percentage of federal spending. Clement countered that "given Argentina's checkered economic past and its penchant for nationalism," YPF investors needed protections in case the country pursued a re-nationalization, and which they might not find in Argentine courts. "When you're seeking significant compensation from a foreign sovereign," Clement said, "there is some reason to think that you're not going to get as fair a shake than if you sue here." The appeals court did not say when it will rule. It typically takes at least a few months to rule in complex cases. Argentina is also appealing Preska's June 30 order that it turn over the YPF shares to partially satisfy the $16.1 billion judgment. In August, the 2nd Circuit put that order on hold to allow Argentina to appeal. The U.S. government took no position in Wednesday's appeal. It opposed requiring Argentina to turn over its YPF shares, saying it could interfere with foreign policy and expose the United States to similar treatment in other countries' courts. The cases are Petersen Energia Inversora SAU et al v Argentina, 2nd U.S. Circuit Court of Appeals, Nos. 23-7376, 23-7463 and 23-7614. https://www.reuters.com/business/energy/argentina-ask-us-appeals-court-overturn-161-billion-ypf-judgment-2025-10-29/

2025-10-29 20:00

Nvidia hits $5 trillion in market value Alphabet, Microsoft and Meta report after the close Caterpillar shares jump after results Indexes: Dow down 0.2%, S&P 500 flat; Nasdaq up 0.6% NEW YORK, Oct 29 (Reuters) - The Dow ended lower and the S&P 500 finished flat on Wednesday after the Federal Reserve cut interest rates but Fed Chair Jerome Powell said another rate cut in December is far from assured. The Nasdaq registered another record closing high, boosted by Nvidia (NVDA.O) , opens new tab after the AI chipmaker made history as the first company to reach $5 trillion in market value. Sign up here. In earlier trading, stocks rose and then added to gains after the Fed cut interest rates by a quarter of a percentage point, as expected, and said it will restart limited purchases of Treasury securities. Fed policymakers also noted the limits in their decision-making process due to the U.S. federal government shutdown. The Fed lowered the overnight benchmark rate to a target range of 3.75% to 4.00%, the second time the U.S. central bank eased this year. After Powell spoke, traders pared bets on a December rate cut, giving it a 71% chance, down from 90%. "Chairman Powell indicated that another rate cut is not a foregone conclusion," said Oliver Pursche, senior vice president and advisor for Wealthspire Advisors in Westport, Connecticut. "But no rate cut is ever a foregone conclusion. So, to me, that is not an inappropriate comment. The (Fed) is data dependent." Nvidia's stock ended the session up 3% at $207.04, giving it a stock market value of $5.03 trillion. It has risen more than 50% this year, leading the artificial intelligence rally on Wall Street. The Dow Jones Industrial Average (.DJI) , opens new tab fell 74.37 points, or 0.16%, to 47,632.00, the S&P 500 (.SPX) , opens new tab lost 0.30 points to 6,890.59 and the Nasdaq Composite (.IXIC) , opens new tab gained 130.98 points, or 0.55%, to 23,958.47. "The rate cut was expected. Powell’s remarks took some shine off the market," said Michael Rosen, chief investment officer at Angeles Investments in Santa Monica, California. "But this is a temporary reaction. It is earnings that ultimately drive equities, and those earnings have been strong." The majority of U.S. earnings results so far this reporting period have beaten analysts' expectations. Of the 222 companies in the S&P 500 that have reported so far, some 84.2% have posted earnings above Wall Street estimates, according to data compiled by LSEG as of Wednesday. That is above the 77% average from the past four quarters. Among Wednesday's key results, Caterpillar (CAT.N) , opens new tab reported a third-quarter profit that beat expectations, and its shares jumped 11.6%. After the closing bell, shares of Meta Platforms (META.O) , opens new tab, Microsoft (MSFT.O) , opens new tab and Alphabet (GOOGL.O) , opens new tab were mixed following quarterly reports by the three megacaps. Shares of Meta Platforms were down more than 8% in extended trading, while Microsoft was down 1% and Alphabet was up about 5%. Meta recorded a nearly $16 billion one-time charge that hurt third-quarter profits and said its capital expenditure next year would be "notably larger" than in 2025. Strong AI demand helped Alphabet's financial results, while Microsoft's AI infrastructure spending soared to a record in the September quarter and deepened investor cost concerns. Declining issues outnumbered advancers by a 2.16-to-1 ratio on the NYSE. There were 476 new highs and 170 new lows on the NYSE. On the Nasdaq, 1,453 stocks rose and 3,306 fell as declining issues outnumbered advancers by a 2.28-to-1 ratio. Volume on U.S. exchanges was 20.71 billion shares, compared with the 21 billion average for the full session over the last 20 trading days. https://www.reuters.com/business/sp-nasdaq-futures-up-nvidia-eyes-5-trillion-mark-ahead-big-tech-results-2025-10-29/

2025-10-29 17:00

BoC reduces benchmark rate by 25 basis points to 2.25% Reduces economic growth outlook for this year and next Projects annualized growth of 0.5% in Q3 and 1% in Q4 The bank estimated inflation to average 2% over the year OTTAWA, Oct 29 (Reuters) - The Bank of Canada signaled on Wednesday an end to its cutting cycle after trimming its key overnight interest rate to 2.25%, but Governor Tiff Macklem said he would be ready to respond if Canada's economic outlook changed materially. The 25-basis-point cut, the second in a row, brings the rate down to the lowest since July 2022. Sign up here. Macklem said the easing was designed to help the economy deal with the disruption from U.S. tariffswhile keeping inflation close to the bank's 2% target. In January, the bank had forecast the economy would grow by 1.8% in both 2025 and 2026. But, citing U.S. trade policy, it now says growth in 2025 will be just 1.2%, dropping to 1.1% in 2026, before recovering to 1.6% in 2027. "If inflation and economic activity evolve broadly in line with the October projection, Governing Council sees the current policy rate at about the right level to keep inflation close to 2% while helping the economy through this period of structural adjustment," the bank said in its rate announcement. Economists said while rate cuts have paused for now, there could be more easing in the next year. "Though it's still unclear how the balance of risks between inflation and growth plays out, the policy rate needs to be lower as excess capacity in the economy remains wide," said Andrew DiCapua, principal economist at the Canadian Chamber of Commerce. Macklem, however, said the bank would need to see evidence of a materially altered economic outlook to respond further. "We recognize there's a lot of uncertainty out there, and if the outlook changes we're prepared to respond," he said. Macklem said while the trade war was depressing demand, it had also added costs for many businesses. The bank expected these forces to offset each other, he told reporters. Canada's economy contracted in the second quarter by 1.6% and early indicators suggest it might barely avoid another contraction in the third quarter. "The weakness we're seeing in the Canadian economy is more than a cyclical downturn. It is also a structural transition," Macklem said, adding this limited the ability of monetary policy to boost demand while keeping inflation at 2%. The bank sees annualized growth of 0.5% in the third quarter and 1% in Q4. It returned on Wednesday to the practice of issuing detailed quarterly economic forecasts after suspending them in March due to economic uncertainty. The BoC aims to keep the rate of annual inflation anchored at 2%, the mid-point of its 1% to 3% target range. In its forecasts, the bank estimated inflation would average 2% over the year. Consumer prices are expected to average around 2.1% in 2026, the bank said. The Canadian dollar firmed after the monetary policy decision and was trading up 0.22% to 1.3915 to the U.S. dollar, or 71.86 U.S. cents. Money markets are not pricing in any probability of rate cuts until March next year. https://www.reuters.com/world/americas/bank-canada-trims-key-interest-rate-hints-end-cuts-2025-10-29/

2025-10-29 15:24

LONDON, Oct 29 (Reuters) - The pound hit its weakest in nearly three months against the dollar and in more than two years versus the euro on Wednesday as rising expectations for a rate cut from the Bank of England by year-end pushed the currency through closely watched levels. Sterling was last down 0.5% on the dollar at $1.3209, its lowest since August 1. Sign up here. Meanwhile the euro gained 0.34% to 88.10 pence, its highest since May 2023, building on its 0.5% gain the previous day, on lower food inflation and reports that the British finance minister will have a larger-than-previously-thought fiscal hole to fill in her budget next month. Analysts at Goldman Sachs said the break above the 88 pence level had provided a "technical element to the move" as well as news suggesting slowing inflation in Britain. "We think that dynamic can continue for sterling, where softer data and a reassessment of Bank of England easing can drive underperformance on European crosses," they said, though they said the BoE meeting next week was a reason for near-term caution. Goldman economists also changed their BoE call on Wednesday, and they now see the central bank cutting rates by 25 basis points at next week's meeting. Markets still only see around a 40% chance of the BoE cutting rates at that meeting but they do see a 70% chance of a cut in either November or December. Until last week's softer-than-expected inflation data, markets had seen a rate cut this year as unlikely. The pound also weakened against other European peers. It is at its lowest against the Swiss franc and Swedish crown since the aftermath of Britain's mini-budget crisis in 2022. https://www.reuters.com/world/uk/sterling-weakest-months-versus-dollar-lowest-years-against-euro-2025-10-29/

2025-10-29 14:07

OTTAWA, Oct 29 (Reuters) - The Bank of Canada released the following statement on Wednesday: "The Bank of Canada today reduced its target for the overnight rate by 25 basis points to 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. Sign up here. "With the effects of US trade actions on economic growth and inflation somewhat clearer, the Bank has returned to its usual practice of providing a projection for the global and Canadian economies in this Monetary Policy Report (MPR). Because US trade policy remains unpredictable and uncertainty is still higher than normal, this projection is subject to a wider-than-usual range of risks. "While the global economy has been resilient to the historic rise in US tariffs, the impact is becoming more evident. Trade relationships are being reconfigured and ongoing trade tensions are dampening investment in many countries. In the MPR projection, the global economy slows from about 3¼% in 2025 to about 3% in 2026 and 2027. "In the United States, economic activity has been strong, supported by the boom in AI investment. At the same time, employment growth has slowed and tariffs have started to push up consumer prices. Growth in the euro area is decelerating due to weaker exports and slowing domestic demand. In China, lower exports to the United States have been offset by higher exports to other countries, but business investment has weakened. Global financial conditions have eased further since July and oil prices have been fairly stable. The Canadian dollar has depreciated slightly against the US dollar. "Canada's economy contracted by 1.6% in the second quarter, reflecting a drop in exports and weak business investment amid heightened uncertainty. Meanwhile, household spending grew at a healthy pace. US trade actions and related uncertainty are having severe effects on targeted sectors including autos, steel, aluminum, and lumber. As a result, GDP growth is expected to be weak in the second half of the year. Growth will get some support from rising consumer and government spending and residential investment, and then pick up gradually as exports and business investment begin to recover. "Canada’s labour market remains soft. Employment gains in September followed two months of sizeable losses. Job losses continue to build in trade-sensitive sectors and hiring has been weak across the economy. The unemployment rate remained at 7.1% in September and wage growth has slowed. Slower population growth means fewer new jobs are needed to keep the employment rate steady. "The Bank projects GDP will grow by 1.2% in 2025, 1.1% in 2026 and 1.6% in 2027. On a quarterly basis, growth strengthens in 2026 after a weak second half of this year. Excess capacity in the economy is expected to persist and be taken up gradually. "CPI inflation was 2.4% in September, slightly higher than the Bank had anticipated. Inflation excluding taxes was 2.9%. The Bank’s preferred measures of core inflation have been sticky around 3%. Expanding the range of indicators to include alternative measures of core inflation and the distribution of price changes among CPI components suggests underlying inflation remains around 2½%. The Bank expects inflationary pressures to ease in the months ahead and CPI inflation to remain near 2% over the projection horizon. "With ongoing weakness in the economy and inflation expected to remain close to the 2% target, Governing Council decided to cut the policy rate by 25 basis points. If inflation and economic activity evolve broadly in line with the October projection, Governing Council sees the current policy rate at about the right level to keep inflation close to 2% while helping the economy through this period of structural adjustment. If the outlook changes, we are prepared to respond. Governing Council will be assessing incoming data carefully relative to the Bank's forecast. "The Canadian economy faces a difficult transition. The structural damage caused by the trade conflict reduces the capacity of the economy and adds costs. This limits the role that monetary policy can play to boost demand while maintaining low inflation. The Bank is focused on ensuring that Canadians continue to have confidence in price stability through this period of global upheaval." ((Reuters Ottawa bureau, +1 647 480 7921; [email protected] , opens new tab)) Keywords: CANADA CENBANK/RATES https://www.reuters.com/world/americas/full-text-bank-canada-lowers-key-rate-225-2025-10-29/