2025-09-18 18:04

Central bank sells $379 million, largest daily sale since April Parallel peso hits record low of 1,510 per USD Legislative defeats raise doubts about Milei agenda Country risk surges past 1,400 points, highest in a year BUENOS AIRES, Sept 18 (Reuters) - Argentina's peso and sovereign bonds tumbled on Thursday after the central bank executed its largest daily dollar sale in five months, as fresh legislative defeats for President Javier Milei stoked investor fears that his fiscal austerity program is in jeopardy. Pressure mounted on the peso as institutional investors rushed to dollarize their holdings, forcing the central bank to sell $379 million to meet demand. It was the bank's biggest single-day intervention since April 11, just before currency controls were eased. Sign up here. The sale followed a $53 million intervention on Wednesday, bringing the two-day total to over $430 million. The intense pressure hammered Argentina's risk assets, with the S&P Merval stock index (.MERV) , opens new tab closing down 4.93% and sovereign bonds falling an average of 3.8%. "Black Thursday, in every sense for the bonds. A crazy and difficult day to face such losses," said a trader. The market turmoil sent the country's risk index , a measure of investor confidence, surging past 1,400 basis points intraday, its highest level in a year. The central bank's heavy intervention held the official interbank exchange rate steady at 1,474.5 per dollar. On Thursday, the monetary authority began publishing the limits of its daily trading band, setting them at 1,474.83 for sales and 948.76 for purchases. Since April, when Argentina inked a $20 billion deal with the International Monetary Fund, the exchange rate has operated within a daily floating band, and the central bank must step in when the currency hits the upper or lower limits. However, soaring demand for the safe-haven dollar spilled into the informal "blue" market, where the peso weakened 1.32% to a historic low of 1,510 per greenback, according to traders. According to brokerage firm Cohen, the market is "testing the ceiling" of the band ahead of midterm elections scheduled for October 26. The central bank's own projections show the top end of the band reaching 1,494.04 pesos per dollar by October 27, the day after the elections, and further devaluing to 1,526.6 by year-end. Futures contracts are pricing it far weaker, at 1,630 per dollar. INTERNATIONAL RESERVES ARE STRAINED Milei's spokesman Manuel Adorni on Thursday sought to downplay the central bank intervention. "The economic program, which includes fiscal, monetary and exchange-rate policies, is consistent, and the fundamentals are correct," Adorni stated at a press conference. "The system is designed to avoid any problems when operating within the established currency band." Analysts, however, warned that continued intervention by the central bank would deplete the country's international reserves, currently at a provisional $39.4 billion. This renews concerns about Argentina's ability to meet its upcoming debt obligations. Financial firm Rava Bursatil noted, citing consultancy 1816, that external debt payments through 2027 total $34 billion, and that Argentina needs an additional $27 billion in reserves to meet those payments without its net reserves turning negative. MARKETS HAVE ELECTION ANXIETY Argentines in just over a month will vote to replace chunks of both chambers of Congress, which is currently controlled by Milei's opposition. The upcoming election has created anxiety in markets, as a recent defeat for the ruling party in a local election in the influential province of Buenos Aires triggered a rush to buy dollars, a collapse in asset prices, and a spike in the country risk. Recent legislative defeats for Milei's administration in Congress have also raised doubts about the government's ability to maintain its planned fiscal surplus. As thousands of Argentines filled the streets of downtown Buenos Aires on Wednesday to demand increased funding for universities and pediatric care, Congress approved two bills to increase budgets for health and education - sectors subject to Milei's sharp spending cuts. https://www.reuters.com/world/americas/argentinas-peso-under-strain-mileis-agenda-faces-hurdles-2025-09-18/

2025-09-18 18:01

Judge Failla rules PDVSA's 2020 bonds valid under Venezuelan law Citgo's assets at risk due to PDVSA's default Delaware Judge Stark moves to support Amber Energy's bid for Citgo parent NEW YORK/HOUSTON, Sept 18 (Reuters) - A U.S. judge upheld the validity of Venezuelan state oil company PDVSA's 2020 bonds on Thursday, prompting a judge in another court to move towards the completion of an auction of shares in the parent of Venezuela-owned U.S. refiner Citgo Petroleum. The bonds are secured by a majority stake in Citgo, which is ultimately owned by Caracas-headquartered PDVSA. The state oil company defaulted on the bonds in 2019, putting the Houston-based refiner at risk of seizure by creditors. Sign up here. For years, bondholders and companies expropriated in Venezuela have clashed in U.S. courts in pursuit of the country's overseas assets, especially its crown jewel Citgo, after winning arbitration cases. After Washington sanctioned PDVSA in 2019 as part of its push to oust Venezuelan President Nicolas Maduro, Citgo severed ties with PDVSA and the refiner's control was taken over by Venezuela's political opposition through supervising boards. The opposition has been trying to protect Citgo and other assets from creditors seeking redress for defaulted debt or expropriated assets. The opposition had argued that the 2020 bonds were not properly issued under Venezuelan law. On Thursday, U.S. District Judge Katherine Polk Failla in Manhattan ruled that the bonds were indeed properly issued. She had declared the bonds valid in 2020, but an appeals court later ordered further review. "Today's decision is as bad as the previous one, and we will appeal it. We have plenty of grounds for that," said Horacio Medina, head of a board supervising Citgo. After Failla's ruling, the final hearing of a separate auction of shares in Citgo's parent before U.S. District Judge Leonard Stark in Delaware was temporarily suspended to allow the court to review the impact of the New York judge's decision. The auction, in which 15 companies and noteholders are pursuing Citgo's assets, is expected to determine the future of the seventh-largest U.S. refiner. Frontrunners include a unit of miner Gold Reserve (GRZ.V) , opens new tab and Amber Energy, an affiliate of hedge fund Elliott Investment Management. A decision on the winner is pending. Failla's decision is expected to help untangle the auction, which has seen three bidding rounds since last year, lawyers and experts said. After the hearing resumed , opens new tab hours later, Judge Stark denied Gold Reserve's motion to disqualify Amber's bid and instructed a court officer overseeing the auction to terminate a stock purchase agreement with the miner and sign a new one with Amber to move the process forward, Gold Reserve said in a release. The move had been requested this week by court officer Robert Pincus and some creditors in favor of Amber's bid, which includes a $2.1 billion pact to pay the bondholders. Other parties had proposed that Judge Stark keep both offers on the table. Gold Reserve said it was expecting a written opinion and order from the court shortly. Amber did not reply to a request for comment. Representatives of the 2020 bondholders declined to comment. The Delaware sale hearing finished on Thursday after more than 30 hours of testimony and questioning. https://www.reuters.com/world/us-judge-declares-venezuelan-oil-company-pdvsas-2020-bonds-valid-2025-09-18/

2025-09-18 16:25

SAO PAULO, Sept 18 (Reuters) - Brazilian cosmetics maker Natura (NATU3.SA) , opens new tab said on Thursday it has agreed to sell its Avon International unit to holding firm Regent, ending a long period of uncertainty after announcing last year it was weighing alternatives for the business arm. The sale of the unit, which aggregates Avon's businesses outside Natura's key Latin American market, sent Sao Paulo-traded shares in the company up more than 13%. Sign up here. Natura has been carrying out divestitures as part of a broader strategy to simplify its structure, integrate business units and focus on Latin America, after struggling with profitability in recent years. The company had previously sold the Aesop , opens new tab and The Body Shop brands, and earlier this week announced a deal to sell Avon's businesses in Central American countries to Grupo PDC. The sale of Avon International to an acquisition vehicle affiliated with Regent includes operations in Europe, Africa and Asia, Natura said in a statement. It does not comprise Avon's Russian business, which remains earmarked as "held for sale," nor its operations in Latin America, which are "at the core of Natura's strategic priorities," the cosmetics maker said. Avon's U.S. business, which was never owned by Natura, is also not a part of the deal. Natura will receive a nominal consideration of 1.00 pound ($1.36) at closing, according to the company, followed by contingent payments based on future results and certain liquidity events limited to 60 million pounds. Natura first said last year it was "weighing alternatives" for Avon International, which had been posting lower margins than the group's Latin American operations. In August it reclassified the unit as an "asset for sale." Analysts at Santander said the move should have positive implications for Natura, as it reduces concerns of additional cash injection requirements to sustain Avon's operations. "Avon International has been a cash-burning unit," they noted. ($1 = 0.7343 pounds) https://www.reuters.com/world/americas/brazils-natura-enters-agreement-sell-avon-international-2025-09-18/

2025-09-18 15:51

Katz has served as US Treasury's point person on US-China talks Bessent wants IMF to end 'mission creep' focus on stability mission Katz served as Treasury adviser on international policy during first Trump term First deputy managing director has traditionally been an American WASHINGTON, Sept 18 (Reuters) - The International Monetary Fund managing director Kristalina Georgieva proposed on Thursday that Dan Katz, U.S. Treasury Secretary Scott Bessent's chief of staff and point person on China, be appointed to fill the fund's No. 2 post, the IMF said in a statement. The move places a key Trump administration insider into an influential position within the global crisis lender as Bessent calls on the IMF to abandon climate and gender projects and focus solely on its core financial stability mission while taking a tougher stance on China's "distortive" economic practices. Sign up here. Katz, who would have a key role in developing IMF policies and lending negotiations, served as the principal adviser to Bessent on a wide range of domestic and international matters, the IMF said, including a new U.S.-Ukraine economic partnership and on negotiations with China. In nominating Katz to be first deputy managing director, IMF managing director Kristalina Georgieva said: "Dan is known to his colleagues for his passion for policy work, particularly the intersection of economic policy and international relations. He is highly respected for his solution-oriented approach, collaborative leadership style, and willingness to bring fresh perspectives to difficult issues." Katz replaces Gita Gopinath, who returned to Harvard University at the end of August. His appointment is subject to approval by the IMF's Executive Board. "The IMF plays an indispensable role at the heart of the international monetary system," Katz said in a statement. "I very much look forward to deepening my engagement with the Fund, its staff and the membership." 'MISSION CREEP' Bessent, who controls dominant U.S. shareholdings in the IMF and the World Bank, called in April for the institutions to refocus to their core missions, saying they were suffering from "mission creep" into climate, gender and social equality issues as global imbalances increased. He said the IMF must be a "brutal truth teller" , opens new tab about countries' economic policies and say no to those that fail to implement economic reforms. A Goldman Sachs alumnus, Katz has helped to organize four rounds of in-person negotiations between Bessent and Chinese Vice Premier He Lifeng, including this week's talks on TikTok in Madrid. Katz, who has degrees from Yale University and New York University School of Law, also served as an adviser to the commander of U.S. forces in Kabul, Afghanistan, and at the Treasury Department during President Donald Trump's first term on international affairs, international financial markets and sanctions policy, the IMF said. He consulted for Bessent's hedge fund before being named Bessent's chief of staff in the current Trump term. The first deputy managing director post has traditionally been an American, with the IMF's top job going to a European since its creation at the end of World War Two. During Trump's first term at the height of the COVID-19 pandemic, Georgieva appointed another U.S. Treasury official, Geoffrey Okamoto, an adviser to then-Treasury secretary Steven Mnuchin, to the IMF No 2 post. Okamoto was succeeded by Gopinath, previously the Fund's chief economist, in January 2022. Pierre Yared, vice chairman of the White House Council of Economic Advisers, had also been under consideration for the post. https://www.reuters.com/business/imf-proposes-appointment-bessents-chief-staff-no-2-post-2025-09-18/

2025-09-18 14:53

Sept 18 (Reuters) - Nvidia (NVDA.O) , opens new tab said on Thursday it will invest $5 billion in Intel (INTC.O) , opens new tab, throwing its heft behind the struggling U.S. chip foundry weeks after the White House engineered a deal for the U.S. government to take a massive stake in the company. Nvidia's support represents a new opening for Intel after years of turnaround efforts at the famed U.S. manufacturer failed to pay off. Intel shares climbed more than 25% in early trading. Sign up here. Here are some comments from analysts on this deal. COMMENTS: NANCY TENGLER, CEO AND CIO AT LAFFER TENGLER INVESTMENTS"The private sector can and will solve the INTC technology problem—one way or another—the government has an abysmal record in trying to do so. My guess? This may be the first step of an acquisition or break-up of the company among U.S. chip makers though it is entirely possible the company will remain a shadow of its former self but will survive." STEVE SOSNICK, CHIEF MARKET ANALYST, INTERACTIVE BROKERS, CONNECTICUT "The $5 billion investment is a relatively minor one from NVDA's point of view, but highly significant for INTC. It gives them a direction and a role in AI chip development that it didn't have yesterday. That's why INTC stock is reacting so strongly to the news while causing only a modest rise in NVDA." "The open question, which I hope we'll learn the answer to later, is how much of a role the Administration played in this deal. It was reported that the President would be speaking with (Nvidia CEO) Jensen Huang, so it is probably not a coincidence. It certainly raises the value of the government's investment, but it could call into question the idea of the government picking winners and losers since the deal is not good news for AMD because the INTC/NVDA linkup makes them a more formidable competitor." PIPER SANDLER ANALYSTS "We think this initiative protects NVDA against a core competency that AMD currently holds, as AMD has been steadily gaining share and highlighting the role of its server CPUs in AI infrastructure." "In addition, the partnership extends to personal computing, with NVDA contributing RTX GPU chiplets to INTC's x86 CPUs. We view this development as a positive for NVIDIA and a negative for AMD over the longer-term." GADJO SEVILLA, SENIOR AI AND TECH ANALYST, EMARKETER "This is a massive game changer for Intel and effectively resets its position of AI-laggard into a cog in future AI infrastructure. Nvidia's investment and 4% to 5% ownership of Intel ensures Intel's short-term survival, opens the door for a larger takeover (not likely due to antitrust), and gives Nvidia a direct line to Intel's foundry business for future GPU production." "For Nvidia: The first thing that comes to mind is it reduces regulatory pressure. Nvidia can't be considered a monopolist if it is spreading the wealth to a key competitor. The $5 billion investment is small in terms of Nvidia's scale but it generates goodwill while giving it access to Intel's chip and GPU pipeline resulting in a new generation of Nvidia-Intel chips and AI servers that will likely be in high demand." DAVID WAGNER, HEAD OF EQUITY AND PORTFOLIO MANAGER AT APTUS CAPITAL ADVISORS "This is truly like the Yankees and the Red Sox coming together to end their rivalry - the companies did not like each other whatsoever. It's a massive step in the right direction (utilizing INTC's fab to make chips) for US chip designers, and breathes new life into a poorly run company for decades. " RUSS MOULD, INVESTMENT DIRECTOR AT AJ BELL: "Nvidia's decision to invest in Intel makes sense on several levels. It keeps the Trump presidency sweet as it can demonstrate it is backing American firms on American soil. It also enables the company to diversify supply chain risk." "From Intel's point of view, the cash injection will help. Even if the balance sheet is not heavily geared, with net debt of $29.6 billion against stockholders' equity of $106 billion, adding financial gearing to operational gearing is not ideal, and anything to reduce that will be welcome." "The technological vote of approval from Nvidia will also be welcome, even if the investment does not lead to an immediate manufacturing or foundry deal, thanks to the plan to jointly develop PC and data centre chips." MATT BRITZMAN, SENIOR EQUITY ANALYST, HARGREAVES LANSDOWN: "Nvidia's $5 billion investment in Intel is less about money and more about influence." "For Intel, this is another welcome boost, both financially and strategically, as it leans on Nvidia to stay competitive. But even with the U.S. government and Nvidia on side, it's one step short of a home run for the foundry business, which is struggling to attract the major customers it needs to succeed against the might of TSMC." "For Nvidia, the financial impact is small, but the political upside is big: this move aligns with U.S. policy and could help ease restrictions on selling advanced chips to China. It also signals a shift in industry dynamics, with Arm losing some exclusivity and AMD facing more pressure. In short, this is a strategic alliance with geopolitical undertones, not just a balance-sheet transaction." ROBERT PAVLIK, SENIOR PORTFOLIO MANAGER AT DAKOTA WEALTH "The association with NVIDIA helps a lot, just having access to their intellectual property. For a company that's sort of struggling to develop AI-needed products, it goes a long way and helps sort of stabilize and give some credence to a company that has been under question for some time." "It's a good move. NVIDIA certainly has the cash to do it. So, why not? Why not try to make an investment and see what happens with it?" CHRIS BEAUCHAMP, CHIEF MARKET ANALYST AT IG GROUP, LONDON "It's impressive to see the (share) move and once again from the U.S. government taking a stake in Intel and then Nvidia sprinkling its magic is going to move the share price." "It's a reflection of Nvidia looking to diversify to an extent its investment within the U.S. and as well to gain some brownie points with the U.S. government." "It doesn't change the bigger problem which Nvidia is facing with China, but it keeps it in favor with the U.S. government." "It's a sign that Nvidia has to broaden out its own operation and it's a sign of Intel looking to become far more of a player within the market." IPEK OZKARDESKAYA, SENIOR ANALYST AT SWISSQUOTE BANK "What Intel needs right now is a viable model and to make sure that clients are interested in this product. So this agreement from Nvidia to invest as much as $5 billion to somehow co-develop chips for PCs and data centers is fresh news for Intel. "Intel needed a partner and Nvidia is the best partner for a company where investors are mostly in doubt about the future and the company's ability to get back on the seat having lost the AI turn." "For Nvidia, it is possible that this decision is politically backed because what the U.S. government wants is these companies producing chips in the United States and they have also taken a stake in Intel in order to force them to build that Ohio plant, which would be one of the world's biggest chip making plants in the U.S. " https://www.reuters.com/world/asia-pacific/view-nvidias-5-billion-bet-intel-2025-09-18/

2025-09-18 14:09

Repo rate maintained after cut at last meeting Economists had predicted close call Bank has aimed for 3% inflation since July PRETORIA, Sept 18 (Reuters) - South Africa's central bank left its key lending rate at 7% in a tight decision, holding off from easing monetary policy further while it assesses the impact of previous rate cuts. Thursday's policy announcement was the first since the South African Reserve Bank (SARB) said it would aim for the bottom of its 3% to 6% inflation target range rather than the middle, an effort to lock in low inflation. Sign up here. The Monetary Policy Committee was split, with four members preferring no change in the repo rate (ZAREPO=ECI) , opens new tab and two favouring a 25 basis point cut. SARB Governor Lesetja Kganyago said the effects of 125 basis points of rate cuts since September 2024 were still filtering through in Africa's biggest economy. "We want to see how this is affecting the economy, how expectations evolve, and how inflation risks are resolved," Kganyago told a press conference. Economists polled by Reuters had expected a close call on Thursday after annual inflation unexpectedly slowed in August (ZACPIY=ECI) , opens new tab, falling to 3.3% from July's 3.5% reading. Well-contained inflation has allowed the SARB to cut its repo rate three times this year, including at its last meeting in July. Since then, U.S. President Donald Trump imposed a steep 30% tariff on South African goods, but the full effects are yet to be felt. The central bank has said U.S. tariffs could cause tens of thousands of job losses in South Africa, though it thinks the overall impact on local inflation and economic growth could be modest. On Thursday the bank said it now expects inflation to average 3.4% this year, marginally higher than a July forecast of 3.3%. It raised its economic growth forecast for this year to 1.2% from 0.9%, reflecting a better-than-expected performance in the second quarter. https://www.reuters.com/world/africa/south-africas-central-bank-keeps-main-interest-rate-unchanged-2025-09-18/