2025-08-29 19:37

SAO PAULO, Aug 29 (Reuters) - Brazilian environment agency Ibama has notified 12 meatpacking plants, including two operated by JBS SA , of an inspection into their alleged involvement in a scheme to buy cattle from illegally cleared land in the Amazon rainforest, according to a document seen by Reuters on Friday. Ibama on Thursday announced it was looking into 12 plants for such violations, but did not name the companies. Sign up here. In a statement, JBS said it did not buy cattle from the farm that Ibama said had been illegally razed. The meatpacker added that it can provide further information to the agency once it gains access to the full inspection report. Privately owned Frigol and Mercurio are also among the 12 beef producers under review, the document seen by Reuters showed. Frigol responded that Ibama had made a mistake, adding it also had not bought cattle from the farm the agency said had been illegally razed. Mercurio Chairman Lincoln Bueno told Reuters a third-party firm monitors the origin of the animals it processes, and that it does not do business with properties with environmental and labor irregularities. Ibama on Thursday said it was inspecting plants that were "acquiring suspicious cattle, triangulated with 'clean' farms, to disguise their illegal origin." Ibama added that it had already fined six unnamed meatpackers 4 million reais ($740,000) for directly buying 8,172 head of cattle from what it called "embargoed areas." Ibama had also seized more than 7,000 head of cattle that were on 2,100 hectares of farms it had blocked from commercial use after illegal deforestation. It said it fined the violators a total of 49 million reais ($9.04 million), without specifying which companies or people they were. "Producing, selling or buying cattle from these embargoed areas is an environmental crime and those responsible are fined," Ibama's statement said. ($1 = 5.4212 reais) https://www.reuters.com/sustainability/climate-energy/brazil-probes-jbs-other-beefpackers-buying-cattle-deforested-land-2025-08-29/

2025-08-29 19:34

In-line inflation data didn't shift market outlook for cuts Jobs data for August due next week Legal tussle between Trump and Fed's Cook to weigh on sentiment Investors jittery about Fed's independence NEW YORK, Aug 29 (Reuters) - The dollar weakened against the euro and Swiss franc on Friday, on course for a 2% decline in August against a basket of currencies, as traders prepared for a U.S. interest rate cut by the Federal Reserve next month. The dollar, which initially firmed after U.S. inflation data came in as expected, later gave up gains, failing to break a three-day losing streak. Sign up here. The U.S. Commerce Department reported on Friday that its Personal Consumption Expenditures (PCE) Price Index rose 0.2% last month after an unrevised 0.3% rise in June. The data keeps the Fed on track for a widely expected rate cut at its upcoming meeting on September 16-17. Money markets are pricing in an 87% chance of an easing, up from 63% a month earlier, CME's FedWatch tool showed. The dollar index , which measures the greenback against a basket of currencies, was down 0.09% at 97.803 in afternoon trading. "FX markets remain range bound as investors await the next U.S. labor market report on September 5th," said Dan Tobon, head of G10 FX strategy at Citi. Weak consumer sentiment continues to hang over an anxious market, which is rebalancing and hedging portfolios at month's end after U.S. equities rallied throughout August, said Uto Shinohara, senior investment strategist at Mesirow Currency Management. Moreover, U.S. President Donald Trump's campaign to exert more influence over monetary policy, including this week's attempt to fire Fed Governor Lisa Cook, has weighed on the dollar. A federal judge said on Friday she would set an expedited briefing schedule in Cook's bid to temporarily block Trump from firing her while she pursues a lawsuit that says he has no valid reason to remove her. "Market instability remains in focus, further fueled by media coverage surrounding Fed Governor Cook's hearing regarding her contested dismissal," Shinohara said. Trump is trying to reshape the Fed after repeatedly criticizing the central bank and its chair, Jerome Powell, for not cutting interest rates. Fed Governor Christopher Waller, who is said to be under consideration by Trump to succeed Powell as the Fed chair, said on Thursday he wanted to start cutting rates next month and "fully expects" more rate cuts to follow to bring the central bank's policy rate closer to a neutral setting. "Interestingly, the FX reaction function to policy announcements and developments with the Fed seems fairly muted – this could be a function of illiquid summer markets," said Citi's Tobon. "Or it could be a function of markets expecting any changes at the Fed will lead to a cutting cycle similar to what is already priced. That reinforces our view it will be all about the data." EU INFLATION Euro zone consumers kept their inflation expectations mostly stable at or above the European Central Bank's 2% target in July, according to an ECB poll released on Friday. Data released on Friday also showed French consumer prices rose slightly less than anticipated in August while Spain's European Union-harmonized 12-month inflation rate was steady at 2.7%. The euro was up 0.11% at $1.1696 and sterling was flat at $1.3502. Both were more than 2% higher for the month. Against the yen , the dollar edged up 0.02% to 146.985 yen, while for the month it was 2.5% lower. Against the Swiss franc , the dollar weakened 0.26% to 0.7997 and was 1.3% lower on the month. Among other currencies, the New Zealand dollar was slightly stronger after Reserve Bank of New Zealand Chairman Neil Quigley tendered his resignation, citing the fallout over the handling of the sudden resignation of the central bank's governor earlier this year. China's yuan hit its strongest level in 10 months against the dollar as steady central bank fixings and a hot domestic stock market drive the currency higher, while the Indian rupee dropped to a record low, weighed down by worries about the economic impact of steep U.S. tariffs on Indian imports. https://www.reuters.com/world/africa/dollar-trades-lower-with-fed-cut-view-course-monthly-drop-2025-08-29/

2025-08-29 19:09

LONDON, Sept 1 (Reuters) - Another batch of closely-anticipated U.S. jobs data, a high-level gathering in China, political upset in France and a blockbuster trial in Brazil are coming up this week. It's time to catch up with that post-summer read in. Sign up here. Here's your week ahead in global markets by Lewis Krauskopf in New York, Rae Wee in Singapore and Anousha Sakoui, Dhara Ranasinghe and Marc Jones in London. 1/ WORK DISPUTE The next U.S. jobs report on September 5 could cement expectations of an impending Federal Reserve rate cut. The August non-farm payrolls report is expected to show growth of 78,000 jobs, according to a Reuters poll, versus 73,000 for July. Last month's weak report, which included huge downward revisions for the prior two months, heightened market expectations the Fed will ease rates in September. Fed Chair Jerome Powell appeared to support those expectations at his Jackson Hole speech, saying that risks to the job market were rising. The jobs data coincides with wariness about threats to the Fed independence after President Donald Trump set about trying to fire Fed Governor Lisa Cook. 2/ POWER PLAY More than 20 world leaders are gathering at a regional security forum in China, in a powerful show of solidarity when Trump is seeking to double down on his vision of U.S. supremacy. Russia's Vladimir Putin, welcomed back on to the world stage by Trump in August, joins the Shanghai Cooperation Organization summit in Tianjin. The event also marks the first visit to China by India's Narendra Modi in more than seven years, with Modi stressing on Sunday that India was committed to improving ties with China. Days later, Chinese President Xi Jinping hosts North Korean leader Kim Jong Un at Beijing's "Victory Day" parade. Markets should pay attention as Xi looks to position China as a global force in a shifting geopolitical landscape. China has increased deployments around Taiwan and the disputed South China Sea. Another round of China PMI releases, meanwhile, showed a mixed picture for the economy. 3/ BACK TO SCHOOL Pack away the beach towels and stow the deck chairs, summer (in most places) is over. Markets sense it too. In a foretaste of the pick-up in activity in September, French markets sold off this week on political turbulence and the Treasury curve steepened after Trump said he would fire Cook. France's Prime Minister, trying to get budget-cut plans across the line, has called a no-confidence vote for September 8. He is expected to fail. At the same time, the September Fed meeting will take place against growing angst about central bank independence. So, that's two already on the September market risks check-list. Stock markets near record highs, smack of complacency, and bond markets - where plenty of risk is priced in - are unlikely to breathe soon. 4/ BACK WITH A BANG The value of global mergers and acquisitions has hit highs not seen since the 2021 post-pandemic boom. Despite earlier market turmoil and a reduced number of transactions, by the end of the year, we could be near the $4 trillion in deals forecast by some dealmakers last year. Tariff-driven expansion, sector consolidation and cross-border strategic alliances are some of the drivers , opens new tab. Keurig Dr Pepper's (KDP.O) , opens new tab $18 billion takeover of JDE Peets (JDEP.AS) , opens new tab highlights how companies may be navigating rising U.S. tariffs. And the takeover of UK assets by largely U.S. bidders will likely continue given an ongoing valuation gap between the two regions. While some deals have taken longer to get done, downward pressure on rates and a strengthening macro environment will support M&A momentum, says BNP Paribas's UK head of advisory Kirshlen Moodley. 5/ HIGH STAKES Brazil's high stakes trial of former President Jair Bolsonaro enters its final stretch on Tuesday, with the far-right leader and seven of his closest aides accused of plotting a coup to overturn the 2022 election result. If found guilty, he could face over 40 years in jail. For markets, the immediate issue is that it could further rile Trump who has already imposed 50% tariffs on Brazilian goods for what he calls the "witch hunt" against Bolsonaro. Some of Brazil's biggest exports, such as aircraft, energy and orange juice, have so far avoided the tariffs, so the concern is that Trump could turn his attention to them. A parallel case at Brazil's Supreme Court is investigating Bolsonaro and his son, congressman Eduardo Bolsonaro, for trying to pressure justices to acquit the former president. That is crucial too as it could mean there is no Bolsonaro on the ballot for next year's election and Trump's attacks seem to have lifted current Brazil President Luiz Inacio Lula da Silva's popularity rating. https://www.reuters.com/business/take-five/global-markets-themes-update-1-graphic-2025-08-29/

2025-08-29 18:21

US dollar set for monthly loss of 2.2% Silver, platinum headed for monthly gain US core PCE firms slightly but matches expectations Aug 29 (Reuters) - Gold prices rose around 1% on Friday and were poised for their best monthly performance since April, as U.S. inflation data reinforced expectations that the Federal Reserve could cut interest rates next month. Spot gold was up 0.8% at $3,443.19 per ounce, as of 1:53 p.m. ET (1753 GMT), its highest level since July 17. Bullion has gained 4.7% in August. Sign up here. U.S. gold futures for December delivery settled 1.2% higher at $3,516.1. The dollar (.DXY) , opens new tab held steady, but was set for a monthly drop of 2.2%. A lower dollar makes gold less expensive for overseas buyers. U.S. consumer spending increased solidly in July while underlying inflation picked up as tariffs on imports raised prices of some goods. The U.S. Personal Consumption Expenditures Price index rose 0.2% month-on-month, and was up 2.6% on a year-on-year basis, both in line with expectations. "We have expectations of a Fed rate cut, or potentially two, throughout this year, (which is) generally supportive for commodity prices across the board, including gold and silver," said David Meger, director of metals trading at High Ridge Futures. Traders increased their bets on a 25-basis-point rate cut by the U.S. central bank at the September policy meeting to a near 89% probability, up from 85% before the data. FEDWATCH Non-yielding gold typically performs well in a low-interest-rate environment. Meanwhile, a federal judge on Friday will consider whether to block President Donald Trump temporarily from firing Federal Reserve Governor Lisa Cook while she pursues a lawsuit claiming Trump has no valid reason to remove her. "Gold is benefiting from this uncertainty (around Fed independence), as shown by inflows into gold ETFs of just under 15 tons in the last two days. Nevertheless, the upside for gold above $3,400 is looking increasingly limited," Commerzbank said in a note. Spot silver gained 1.7% to $39.77 per ounce, platinum added 0.3% to $1,362.86, and both metals were on track for monthly gains. Palladium was flat at $1,102.08, heading for a monthly loss. https://www.reuters.com/world/india/gold-track-best-month-four-inflation-data-bolsters-rate-cut-bets-2025-08-29/

2025-08-29 17:22

BRASILIA, Aug 28 (Reuters) - Brazil plans to announce a tax incentive plan in early September aimed at attracting foreign tech companies to build data centers in the country, two economic policy officials told Reuters. The sources, who requested anonymity to discuss the confidential plans, said the "Redata" program is designed to build goodwill with big tech firms and also more broadly with the United States, which imposed a 50% import tariff on Brazilian goods. Sign up here. U.S. President Donald Trump has tied the tariff to the trial of Brazilian former President Jair Bolsonaro, as well as complaints about regulation of U.S. tech companies, including alleged censorship of social media platforms. The Brazilian officials said the data center incentives may help to shift the focus of talks to mutually beneficial investments. "This is in American companies' interest. Redata reduces capital investment costs. Some U.S. states are restricting data center investment due to energy issues, while we have surplus energy," one source said. "It also helps negotiations with the U.S. - it's a positive signal." The executive order, initially slated for the first half of the year, had been shelved amid political turbulence when the government raised a tax on financial transactions. Separately, Brazil has also dropped a plan to tax big tech firms, fearing it could escalate U.S. trade tensions. Reuters reported in April that the data center incentives would exempt technology investments from federal taxes - including PIS, Cofins, IPI and import duties - if projects meet criteria such as 100% renewable energy sourcing. Brazil took an initial step in July by updating rules for special "export processing zones" (ZPEs), which developers are eyeing for data center projects. The new framework, which must be approved by Congress to remain valid, requires all ZPEs to source power from renewable plants yet to be built. The "Redata" plan has been eagerly awaited by investors eyeing the potential of Brazil as a hub for data centers tapping cheap and plentiful renewable energy. One such project, planned at the Pecem port complex in the northeast, is a joint venture between energy firm Casa dos Ventos and ByteDance, the parent company of TikTok, sources previously said. https://www.reuters.com/sustainability/climate-energy/brazil-launching-data-center-incentives-next-month-woo-big-tech-sources-say-2025-08-29/

2025-08-29 17:10

OTTAWA, Aug 29 (Reuters) - Canada named senior energy industry executive Dawn Farrell on Friday to lead a new office designed to fast-track the review and approval of natural resources projects such as mines and pipelines, a process that can take a decade. Prime Minister Mark Carney announced the major projects office earlier this year, saying streamlining will boost gross domestic product and help offset the damage from U.S. tariffs. Sign up here. Farrell, who was CEO of the Trans Mountain Pipeline from 2022 to 2024, and her team will identify projects in the national interest and help speed up their development. This should reduce the approval timeline for major projects to a maximum of two years, Carney's office said in a statement. "For too long, the construction of major infrastructure has been stalled by arduous, inefficient approval processes, leaving enormous investments on the table." Farrell's office will be based in Calgary, the capital of Canada's oil patch. Ottawa has yet to designate any projects as being of national significance. In a statement, the Canadian Association of Petroleum Producers said Farrell's appointment, and creation of the office, were "concrete steps towards making Canada an energy superpower and send a positive signal to industry and investors." As CEO of Trans Mountain, Farrell oversaw a multibillion dollar expansion of the pipeline's capacity that was completed last year. She was CEO of utility company TransAlta from 2012 to 2021. https://www.reuters.com/sustainability/boards-policy-regulation/energy-exec-tasked-with-speeding-up-project-approvals-canada-2025-08-29/