2025-12-08 11:56

Dec 8 (Reuters) - U.S. heavy rare earths magnet startup REalloys said on Monday it would partner with the Saskatchewan Research Council, the Canadian province's technology innovation unit, on an expansion of a heavy rare earths processing plant due to start operating in early 2027. REalloys will invest about $21 million in the facility to expand production of heavy rare earths, in return for a long-term offtake agreement of 80% of annual production, it said. Sign up here. The announcement comes as the U.S. government seeks to develop an alternative supply pipeline for the specialised materials, used in magnets for industries like wind power and defence, to diversify risk away from top producer China. Ohio-based REalloys, which was formed in 2023, plans to process rare earths in Saskatchewan into metal from either mined ore or recycled electronics. It signed an agreement earlier this year to source ore from a Greenland project that Critical Metals Corp (CRML.O) , opens new tab aims to develop. The Saskatchewan facility will initially produce up to 30 metric tons of dysprosium oxide, 15 tons of terbium oxide and 400 tons of neodymium and praseodymium metal (NdPr) annually, which will increase to 600 tons per year after the expansion is complete. REalloys, which is developing a mine in Saskatchewan to support the magnet rare earths supply chain, in September received a letter of interest from the U.S. Export-Import Bank for a loan worth up to $200 million to fund processing and magnet facilities. https://www.reuters.com/business/realloys-reaches-rare-earths-tie-up-with-canada-backed-council-2025-12-08/

2025-12-08 11:37

LONDON, Dec 8 (Reuters) - By Yoruk Bahceli, markets correspondent What matters in U.S. and global markets today Sign up here. The Federal Reserve meeting is fast approaching on Wednesday – and the stakes are high. Rising bets for a December cut seem to have saved equities from AI jitters for now. But the effect on the dollar, which dipped further on Monday, has been more pain. I’ll get into all the market news below. But first check out Mike Dolan’s latest column where he discusses what is at the heart of the problem facing the Federal Reserve this week and throughout 2026. And listen to thelatest episode of the new Morning Bid daily podcast. Subscribe to hear Mike and other Reuters journalists discuss the biggest news in markets and finance seven days a week. Today's Market Minute The final Fed countdown No surprise: It's all about the Fed this week, with traders pretty confident -- and hopeful -- the bank will deliver a 25 basis-point rate cut on Wednesday. After all, bets that the Fed will cut rates have helped the S&P 500 bounce back from AI woes and jump 5% since late November, so equity traders need Jerome Powell and co to deliver. As for the dollar, the market verdict is more pain. The greenback was down a touch in early London trade on Monday, after two straight weeks of losses which has seen it drop more than 1% against peers, having hit its highest since late May before Fed bets gained traction. A pause rather than a cut would come as a shock to markets. So the real focus will be on how many policymakers, who are looking increasingly divided, dissent from the decision. The Fed's decision-making committee has not had three or more dissents at a meeting since 2019 and even before that it was a rarity, happening just nine times since 1990. This week is not all about the Fed though, with central banks in Canada, Switzerland and Australia also meeting, though they're all expected to hold rates. But the focus was also on the European Central Bank on Monday, where Isabel Schnabel, a leading policy hawk, said Frankfurt's next move could be a rate hike rather than a cut as some expect, though it won't happen in the near future. Markets are now pricing a small probability of an ECB hike next year -- one they had priced out previously. Traders already expect rate hikes in Japan, Australia and Canada, moves that could put further pressure on the dollar if they materialise. It was no surprise then that the U.S. dollar dropped more than 1% against its Canadian peer on Friday, when Canada's unemployment rate once again defied expectations and fell to a 16-month low. In bond markets, Germany's 30-year bond yield rose to its highest level since 2011, in the latest sign that long-end debt pressures are building back up. Japanese bond yields rose to fresh multi-year highs while U.S. 30-year Treasury yields touched their highest since September. In geopolitics, the focus remains on Ukraine peace talks, where progress has been slow, with President Volodymyr Zelenskiy set to meet European leaders in London. Chart of the day Market bets that the Fed will cut rates in December, which gained traction after November 21, have sent the S&P 500 5% higher since then, while the U.S. dollar has dropped against a basket of peers. Today's events to watch * U.S. earnings: Toll Brothers, Phreesia, Oil-Dri Corporation of America, Ooma, Star Group LP, Compass Minerals International, Mama's Creations * U.S. bills, three-year note auctions Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles , opens new tab, is committed to integrity, independence, and freedom from bias. Want to receive the Morning Bid in your inbox every weekday morning? Sign up for the newsletter here. https://www.reuters.com/business/finance/global-markets-view-usa-2025-12-08/

2025-12-08 11:18

BRUSSELS, Dec 8 - The European Union plans to delay to December 16 legal proposals to expand its carbon border levy and potentially weaken a 2035 ban on new CO2-emitting cars, according to a draft European Commission agenda, seen by Reuters. The plans are being watched closely by carmakers and governments, including Germany and Italy, which have demanded the EU revise its 2035 autos CO2 emissions policy, which in its current form would effectively ban sales of new combustion engine cars. Sign up here. The proposals had initially been due for publication on Wednesday. Commission officials were still negotiating the timings on Monday, and the draft agenda could still change before it is published. Some EU officials suggested the autos proposals could be delayed further, into 2026. A Commission spokesperson declined to comment on the draft agenda seen by Reuters. Brussels is preparing proposals to expand its upcoming carbon border tariff to more downstream products such as washing machines, and attempt to prevent foreign companies from circumventing the world-first measure. The autos proposals are being prepared amid lobbying from European carmakers for greater flexibility on the 2035 car policy, including by allowing sales of plug-in hybrids, and combustion engine cars that run on so-called CO2-neutral fuels, to continue beyond this deadline. Europe's auto industry says it needs this flexibility to cope with slower than expected electric vehicle sales, and fierce competition from China. But weakening the policy could hamper the EU's climate targets, since it would mean more CO2-emitting cars remain on Europe's roads by 2050, when the EU has committed to reach net zero emissions across its economy. https://www.reuters.com/sustainability/climate-energy/eu-delay-proposals-carbon-border-tariff-auto-industry-draft-document-shows-2025-12-08/

2025-12-08 11:17

No reason to change policy for months Exchange rate pass through may be smaller than thought Projected undershooting in 2026 not a worry No point in trying to overengineer policy FRANKFURT, Dec 8 (Reuters) - The European Central Bank has no reason to change interest rates for months and should be mindful of some upside inflation risks, including from slower wage moderation and a smaller impact from the euro's firming, Slovak policymaker Peter Kazimir said. The ECB has been holding interest rates steady since cutting them by 2 percentage points in the year to June, debating whether it has done enough to keep inflation at 2% after taming runaway price growth. Sign up here. "I see no reason to move in the coming months," Kazimir told Reuters in an interview. "Definitely not in December, then we’ll see." He argued that the economy and prices are developing broadly as expected but there have been some upside surprises that require attention. "The labour market remains tight, growth is a bit better and wage moderation is somewhat slower than we expected," Kazimir, considered a policy hawk on the 26-member Governing Council, said. While inflation risks are broadly balanced, he argued that being 'vigilant' to upside risks has become more important. His comments are likely to solidify already ample investor bets that the ECB is done cutting interest rates. Markets now see virtually no chance of any further policy easing even next year after growth and price data both surprised on the upside. Kazimir's comments echo a message from ECB board member Isabel Schnabel, who argued that the ECB's next move is likely to be a hike, rather than a cut, but not anytime soon. Some have argued that the euro's strength against the dollar is making imported goods and energy cheaper, fuelling disinflation and raising the risk that euro zone price growth dips below target. But Kazimir warned that the exchange rate impact may be smaller than some expect and the ECB should in any case not react to inflation bumps caused by energy base effects. "We continue monitoring the exchange rate pass-through to goods inflation, as it may not be as strong as expected," Kazimir added. "Firms might not entirely reflect developments in the exchange rate markets in their final prices." The euro is up 6% in a year on a trade-weighted basis and it is also 11% stronger against the dollar, the currency used to price key energy commodities. Still, inflation could dip below 2% next year, even if temporarily, and this is why some policymakers worry about downside risks. Kazimir, however, pushed back, arguing that the labour market is tight, the output gap is closed, growth is at potential and wage moderation is slow, all reducing the chance of inflation going too low. "The projected undershooting doesn’t worry me at all," he said. "There is no need to react to small deviations, especially if they are because of energy." "Monetary policy needs to provide certainty and trying to overengineer policy around small bumps in inflation would actually create uncertainty," he said. https://www.reuters.com/business/ecb-must-be-vigilant-about-some-upside-risks-inflation-kazimir-says-2025-12-08/

2025-12-08 11:06

Tender to operate freight lines to be launched in 2026 Revitalization key to Milei plans to transform Argentine economy Significant investment will be needed after years of neglect BUENOS AIRES, Dec 8 (Reuters) - Argentina, a major global food supplier, plans to supercharge its grain and mining exports with privatization and an ambitious modernization of its aging railway network, which industry leaders say will halve freight costs from regions far from ports. The first tender is for the Belgrano Cargas network, which operates the country's three largest freight train lines. To be launched early next year, the initiative could expand production of global exports like soybeans, corn, copper and lithium. It also could help transport sand to Vaca Muerta, a huge shale formation in Argentina's southwest. Sign up here. Privatization of the network is part of President Javier Milei's plan to transfer struggling state-owned enterprises to private hands and attract investment to replenish reserves depleted after years of economic crisis. LESS FREIGHT "BY TRAIN" THAN IN 1970 Modernizing the railway system after years of neglect will be an enormous challenge. "The volume of cargo transported (by train) today is below that of 1970, although agricultural production has increased almost six times in the same period," said Alejandro Núñez, president of state-run Belgrano Cargas y Logística that runs the Belgrano Cargas network. The network includes three lines that span nearly 8,000 kilometers (5,000 miles) and currently transport about 7.5 million tons of cargo per year, of which 60% are agricultural products and derivatives. At times, trains travel so slowly on the dilapidated tracks that soybean loads are easily hijacked. Derailments are common. A further 11,000 kilometers (6,800 miles) of lines will be put out to tender. These are currently out of service entirely. Most cargo in Argentina is shipped by road. Rail freight transports only 5% of the total, minuscule compared to 20% in Brazil and more than 40% in the U.S. and Canada. BIDDING INTEREST The government sees improving the railways as vital to its target of increasing total annual exports by $100 billion in seven years, according to Foreign Minister Pablo Quirno. This year, Argentina has reported total exports of $71.5 billion through October. Privatization may help by lowering the costs of transporting goods from farms in the north and west of the country to the key ports area around the city of Rosario. Per ton, it currently costs more to transport cargo from the northern province of Salta to Rosario than to ship it from Rosario to Vietnam, said Gustavo Idígoras, president of grain export chamber CIARA-CEC. Improving the railways will not be cheap. Núñez estimated an investment of at least $800 million would be needed to upgrade the infrastructure. One probable bidder for the tender is Grupo México Transportes (GMXT), which operates Mexico's largest rail network and several freight lines in the U.S., said a source with direct knowledge of the matter who declined to be named. Given the magnitude of the upgrade needed, GMXT plans to invest $3 billion if it wins, the source said. An agricultural consortium made up of Bunge Global, Cargill Inc., Louis Dreyfus Co., Asociación de Cooperativas Argentinas and Aceitera General Deheza SA has also expressed interest in the bidding, as has Anglo-Australian mining company Rio Tinto (RIO.AX) , opens new tab, according to local media reports. Representatives of the companies declined to comment. EXPANDING THE FRONTIER According to Alfredo Sesé, technical secretary of the transportation commission at the Rosario Stock Exchange, lower freight costs could help expand the agricultural frontier in the north of the country. At least half of Argentina's agricultural production takes place more than 300 kilometers from Rosario. Sesé estimated that transporting a ton by truck costs between 7 to 9 cents per kilometer, while doing so by rail costs less than 5 cents. The further the farm, the greater boost a modernized railway could bring. Argentina's mining sector could also benefit. Argentina is the world's No. 4 lithium exporter and has copper mining projects that could begin production in the next several years. "The mining industry needs logistical solutions that allow it to supply projects and move production," said Roberto Cacciola, president of the Argentine Chamber of Mining Companies. https://www.reuters.com/business/autos-transportation/argentinas-railway-privatization-dreams-face-long-haul-ahead-2025-12-08/

2025-12-08 10:52

MOSCOW, Dec 8 (Reuters) - The Kremlin said on Monday that India would continue buying oil wherever it was profitable to do so in order to ensure its own economic interests. U.S. President Donald Trump doubled tariffs on Indian goods to 50% in August to punish New Delhi for buying Russian oil, which Washington said was helping to fund Russia's war in Ukraine. Sign up here. On a visit to New Delhi last week, Russian President Vladimir Putin offered India uninterrupted fuel supplies. In a call with reporters, Kremlin spokesman Dmitry Peskov said: "India, as a sovereign state, conducts foreign trade operations and purchases energy resources where it is beneficial for India, and as far as we understand, our Indian partners will continue this policy to ensure their economic interests." https://www.reuters.com/business/energy/kremlin-says-india-will-continue-buy-russian-oil-if-its-profitable-2025-12-08/