2025-08-28 19:01

Europe's cooperation crucial for significant easing of Russia sanctions US options include lifting oilfield service sanctions, releasing seized assets Europe holds key to lifting Russian oil import ban and SWIFT access WASHINGTON, Aug 28 (Reuters) - U.S. President Donald Trump could quickly lift some sanctions on Russia as a reward to Moscow if peace talks with Ukraine go well, but only Europe can take the bigger steps needed to significantly ease Russia’s cash crunch. Trump in recent days has renewed a threat to impose more sanctions and tariffs on Russia and buyers of its oil if there is no progress toward a peaceful settlement in the 3-1/2-year-long war in Ukraine. But if talks go well, he could begin to lift some of the punitive measures. Sign up here. Among Trump's options are releasing seized Russian assets, reopening U.S. lending to Russian banks and corporations, and allowing U.S. oil services companies to return to Russia’s far-flung oil and gas fields. Without Europe’s cooperation, however, those measures would have limited effect and the most damaging sanctions – including massive restrictions on Russia’s global oil trade, the lifeblood of its economy – would stay in place. Oil and gas revenue accounts for about a quarter of Russia's total federal budget proceeds. Revenues from the sector have fallen sharply, a painful outcome for Russia amid higher spending since launching its military campaign in Ukraine. "The U.S. unilaterally has far less to offer than the Europeans who have little reason to give Russia a break until they get a satisfactory resolution on Ukraine," said Craig Kennedy, an associate at Harvard University's Davis Center for Russian and Eurasian Studies. The European Union has stressed it intends to maintain pressure on Russia until Moscow ends the war. The biggest step Trump could take would be to ease Treasury Department sanctions restricting U.S. oilfield service companies from working in Russia, potentially enabling Russia to boost oil and gas production from some of its hardest-to-drill places, including in the Arctic. U.S. and Russian officials have discussed the possibility of Exxon Mobil XOM.N re-entering Russia’s Sakhalin-1 oil and gas project, Reuters previously reported, citing sources. Sakhalin-1 has to date not been directly designated under extensive U.S. sanctions on Russian energy. The officials also discussed the possibility of Russia purchasing U.S. equipment for its LNG projects, such as Arctic LNG 2, which is under sanctions, the sources said. Probably the quickest way to ease Russia's cash crunch, however, would be for Europe to lift a ban on imports of Russian seaborne oil into the region. Europe was the destination for nearly half of Russia's crude and petroleum product exports before the invasion of Ukraine, according to the International Energy Agency. Reopening that market would allow Russia to reduce the billions of dollars in shipping costs it pays to send crude oil by tanker to China and India - now Russia’s main buyers. But that's out of Washington's hands. Europe would need to cooperate in any decision to lift a price cap imposed on Russian oil trades, though the U.S. could theoretically undermine it by stopping its own enforcement activities. The cap, which the EU has agreed to tighten in September to $47.60 a barrel from $60 a barrel, is intended to limit Moscow’s revenues when oil markets are hot, without hindering global flows. FROZEN ASSETS The U.S. and Europe have the option of releasing Russian central bank assets held since the invasion, but here again, Europe has much more pull. The EU has about $230 billion of the assets, while the U.S. has identified about $5 billion of the Russian assets in its banking system, according to Axios. Returning those assets is one of the few moves Trump could take without Congress. It could be done in secret through licenses from the Treasury Department, details of which are not released to the public. "Releasing those funds would not go unnoticed by (Russian President Vladimir) Putin while likely avoiding any domestic attention," said Jeremy Paner, a partner at law firm Hughes Hubbard & Reed and former Treasury Department sanctions investigator. Europe also holds the cards when it comes to re-admitting Russian banks to the SWIFT global payments network, which is based in Brussels and under EU law. The West could open the taps on capital markets lending to Russian banks and corporations. But big U.S. banks would be unlikely to lend large sums without European counterparts doing the same, according to Kennedy. "Historically, European banks led the way in Russia, they have the expertise and the risk appetite," Kennedy said. https://www.reuters.com/business/energy/trumps-options-ease-russia-sanctions-limited-compared-europes-2025-08-28/

2025-08-28 18:41

Authorities target multibillion-dollar schemes in fuel sector Operation Hidden Carbon involves 350 search warrants, 1 billion reais in assets blocked Brazil tax authority says funds concealed and shielded assets SAO PAULO/RIO DE JANEIRO/BRASILIA, Aug 28 (Reuters) - Brazilian police and tax officials carried out a series of raids early on Thursday across the country targeting multibillion-dollar money laundering and fraud schemes linked to organized crime in the fuel sector, authorities said. Multinational energy firms have struggled for years to root out organized crime from their distribution networks in Brazil, and the federal tax revenue service said this week's crackdown related to schemes involving more than 10 billion reais ($1.84 billion) in fuel imports and 52 billion reais in domestic fuel sales. Sign up here. It said 46 billion reais in illicit financial transactions linked to the schemes had moved through fintech companies from 2020 to 2024. "In coordinated actions involving the federal police, federal revenue service and state public prosecutors' offices, three simultaneous operations were launched in the financial and fuel sectors, involving 10 states," Brazil's President Luiz Inacio Lula da Silva said in a post on X. Authorities served some 350 search warrants in states across the country and sought to block more than 1 billion reais in assets during the operation, known as Hidden Carbon, the revenue service said. Closed-end funds investigated by authorities held assets including a port terminal, four ethanol plants plus stakes in two others, a fleet of 1,600 trucks, and more than 100 properties, said Andrea Chaves, the revenue service deputy secretary for oversight. "Evidence identified by the tax authority indicates the funds were used to conceal and shield assets, and suggests fund managers were aware of and contributed to the scheme," she said. The criminal enterprises included the involvement of First Capital Command (PCC), a major organized crime gang, public prosecutors in Sao Paulo state said. Organized crime's infiltration of critical economic sectors from energy to finance in Brazil represents a dangerous escalation of risk, said Robert Muggah, cofounder of think tank Igarape Institute. "By capturing strategic assets and exploiting regulatory blind spots, the PCC and its allies are not only draining public revenues; they are undermining trust in the financial system and governance," Muggah said. LINKED COMPANIES Asset manager REAG Investimentos (REAG3.SA) , opens new tab was among the targets of the warrants, according to a court decision seen by Reuters. REAG said in a securities filing it was "fully cooperating with the competent authorities, providing the information and documents requested" as part of the "ongoing investigative procedure." The company's shares were down 13.3% on Thursday afternoon. Chemical firm GPC Quimica, owned by Dexxos Participacoes (DEXP3.SA) , opens new tab, was also named in a court document seen by Reuters. Dexxos "does not condone any illegal acts" and remains available to competent authorities to assist requests for information, it said in a statement. Brazil's Instituto Combustivel Legal (ICL), an industry group created to combat fuel fraud, expects volume of sales for major distributors to rise due to the operations. "The space they have in the market is expected to grow," Emerson Kapaz, ICL's chief executive, told Reuters. Shares of major distributors such as Ultrapar (UGPA3.SA) , opens new tab, Raizen (RAIZ4.SA) , opens new tab and Vibra (VBBR3.SA) , opens new tab jumped after news of the operation became public. In a separate statement, the federal police said they had simultaneously launched the "Quasar" and "Tank" operations, also aimed at cracking down on schemes that allegedly moved more than 23 billion reais in the fuel sector. ($1 = 5.4212 reais) https://www.reuters.com/business/energy/brazil-carries-out-raids-crackdown-organized-crime-fuel-sector-2025-08-28/

2025-08-28 18:40

Dollar lower as focus turns to Fed policy easing Nvidia revenue forecast higher than expectations but not a blowout US economic data positive for market NEW YORK, Aug 28 (Reuters) - Major U.S. stock indexes were slightly higher on Thursday even as Nvidia shares slipped amid uncertainty over its China business, while the dollar weakened against the euro and yen as traders anticipated U.S. interest rate cuts soon. Nvidia's shares (NVDA.O) , opens new tab were down 0.9% as questions around the Sino-U.S. trade war clouded a better-than-expected revenue forecast from the chip designer, released after Wednesday's market close. Nvidia's outlook was above Wall Street expectations but disappointed some investors accustomed to blowout results. Sign up here. But the Dow, S&P 500 and Nasdaq were all higher, and an index of semiconductor stocks (.SOX) , opens new tab was up 0.6%. Investors were mostly breathing a sigh of relief over Nvidia's results and guidance, said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. While there's some confusion over what will happen with China, Nvidia "didn't say anything that pointed to a significant slowdown in anything, so that took away a major risk or overhang this morning," he said. Nvidia CEO Jensen Huang also dismissed concern about an end to a spending boom on AI chips and said opportunities will expand over the next five years. Another plus for stocks was economic data, Tuz said. The day's data showed the U.S. economy grew faster than initially thought in the second quarter, in part driven by business investment in intellectual property such as AI. The Dow Jones Industrial Average (.DJI) , opens new tab rose 20.59 points, or 0.05%, to 45,585.82, the S&P 500 (.SPX) , opens new tab rose 16.68 points, or 0.26%, to 6,498.08 and the Nasdaq Composite (.IXIC) , opens new tab rose 118.63 points, or 0.55%, to 21,708.53. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab rose 3.33 points, or 0.35%, to 956.37. The pan-European STOXX 600 (.STOXX) , opens new tab index fell 0.2%. Concerns over France's fiscal path are likely to stay in focus for European markets following Prime Minister Francois Bayrou's gamble to win backing for his deeply unpopular debt-reduction plan via a confidence vote next month. The euro was up 0.41% at $1.1685. Against the Japanese yen , the dollar weakened 0.37% to 146.84. Investors are keen to find out more about prospects for interest rate cuts ahead of the Federal Reserve's September 16-17 policy meeting. On Wednesday, New York Fed President John Williams said it is likely interest rates can fall at some point but policymakers will need to see what upcoming data indicate about the economy to decide if it's appropriate to make a cut at the September meeting. Traders currently are pricing in roughly 87% odds of a quarter-point rate cut in September, according to CME's FedWatch tool. In total, they see 137 basis points of cuts by the end of 2026. Also key this week will be a report Friday on U.S. personal consumption expenditures - the Fed's preferred inflation measure. Investors were still digesting news on Federal Reserve Governor Lisa Cook. Cook filed a lawsuit on Thursday claiming U.S. President Donald Trump has no power to remove her from office, setting up a legal battle that could reset long-established norms for the U.S. central bank's independence. Interest rate-sensitive two-year yields rose but held near an almost four-month low as traders weighed prospects for Fed rate cuts. The two-year note yield was last up 2.2 basis points at 3.645%. The benchmark 10-year note fell 2.3 basis points to 4.215%. Oil and gold prices rose. U.S. crude rose 0.47% to $64.44 a barrel and Brent rose to $68.38 per barrel, up 0.48% on the day. Spot gold rose 0.62% to $3,418.00 an ounce. https://www.reuters.com/world/china/global-markets-wrapup-6-2025-08-28/

2025-08-28 18:36

BRASILIA, Aug 28 (Reuters) - Brazil's government posted a primary budget deficit of 59.124 billion reais ($10.9 billion) in July, Treasury data showed on Thursday, more than six times the deficit from the year-earlier period but close to analysts' estimates. The increase stemmed from a 28.3% inflation-adjusted rise in government spending, driven mainly by court-ordered payments and pension benefits. Meanwhile, net revenue rose 3.9% in the period, helped by higher tax collection. Sign up here. Analysts polled by Reuters expected a primary deficit of 58.55 billion reais. The primary deficit last month was the worst for the month of July since 2020, when it hit 120.6 billion reais in inflation-adjusted terms due largely to high expenses tied to the COVID-19 pandemic. The year-over-year jump in the deficit was boosted by the postponement of government court-ordered payments to July. Last year, those payments had been made in the first half of the year. The 12-month deficit reached 34.1 billion reais, equivalent to 0.3% of gross domestic product, the data showed, missing the government's official target for 2025 of a zero-figure deficit, with a tolerance band of 0.25% of GDP in either direction. ($1 = 5.4212 reais) https://www.reuters.com/world/americas/brazils-government-deficit-jumps-july-12-month-deficit-misses-target-2025-08-28/

2025-08-28 18:16

SAO PAULO, Aug 28 (Reuters) - Brazilian lender BTG Pactual (BPAC3.SA) , opens new tab and the World Bank's private sector arm International Finance Corporation announced on Thursday up to $1 billion in joint investments on sustainability and development initiatives. WHY IT'S IMPORTANT Private sector engagement in sustainability has gained momentum globally, with private institutions promoting climate finance and development-focused investments. Sign up here. Brazil is home to much of the Amazon rainforest and a critical region for biodiversity and climate solutions. BTG Pactual is Latin America's largest investment bank. BY THE NUMBERS The partnership is set to mobilize up to $1 billion by the end of 2028 through co-financing, equity investments and private equity funds. KEY QUOTES "The private sector can and must be a key player in advancing the climate agenda and driving transformative initiatives that improve lives and foster economic growth," said Alfonso Garcia Mora, IFC's regional vice-president for Europe, Latin America and the Caribbean. BTG Pactual CEO Roberto Sallouti said "the allocation of these resources will be done carefully, adhering to technical and financial criteria." ADDITIONAL CONTEXT The investments are aimed at boosting initiatives to tackle climate change and promote sustainable economic growth in Brazil and Latin America, IFC and BTG said, targeting social and environmental development, conservation, infrastructure, and the so-called bioeconomy. https://www.reuters.com/sustainability/boards-policy-regulation/ifc-btg-pactual-invest-up-1-billion-latin-america-sustainability-2025-08-28/

2025-08-28 17:01

73% of investors based in U.S. Europe hedge funds receive highest interest LONDON, Aug 28 (Reuters) - Investors plan to increase their hedge fund exposure to prefer Europe and Asia over the U.S. for the first time since 2023 as wealthy financiers diversify away from the United States, a BNP Paribas (BNPP.PA) , opens new tab survey sent to clients on Thursday showed. Heightened U.S. policy uncertainty and tariffs have prompted investors to move away from U.S. markets this year, with Europe also benefiting as Germany ramps up fiscal stimulus to boost long-term growth prospects. Sign up here. European hedge funds surveyed by BNP Paribas said that they received higher inflows of investor money than elsewhere in the world during the first half of 2025. Europe was the top region with 37% of investors adding money in the first half of 2025, while 33% of allocators planned to add more in the second half, the survey showed. Hedge funds in the U.S. and Asia shared a little less than half, 47%, of the money flowing into hedge funds and Europe took the rest. Around a third planned to increase hedge fund investments in the Asia-Pacific region and Europe, whereas 14% said they would invest in North American-based hedge funds, the report said. BNP Paribas' Hedge Fund Outlook surveyed 140 financiers in 16 countries representing $960 billion of hedge-fund-related assets. Credit hedge funds reported the highest inflows, around $4.5 billion, from investors, followed by multi-manager hedge funds which trade many strategies under one roof and then stock trading hedge funds. Global equity funds outside the United States drew their biggest inflows in more than four-and-a-half years in July, Reuters reported earlier this month. Smaller and mid-sized hedge funds, all under $10 billion, received the most investor money, BNP Paribas said. Hedge fund investors are still predominantly based in the United States, said the survey. About 73% of the survey respondents who invest in hedge funds were based there, compared to 32% who were in Europe and 23% in Asia (ex Japan). https://www.reuters.com/business/finance/hedge-funds-europe-gain-favour-investors-steer-away-us-says-bnp-paribas-2025-08-28/