2025-08-15 16:25

WASHINGTON, Aug 15 (Reuters) - The Federal Reserve announced on Friday it was scrapping a so-called "novel activities" supervision program it created to specifically police banks on their crypto and fintech activities, and instead will integrate that work into its regular bank oversight. The Fed launched the new program in 2023 as a way to focus on how banks interact with those emerging technologies. But the central bank said it was no longer needed as the Fed has strengthened its understanding of those risks and how banksmanage them. Sign up here. https://www.reuters.com/sustainability/boards-policy-regulation/fed-scrap-program-devoted-policing-banks-crypto-fintech-activities-2025-08-15/

2025-08-15 15:36

SAO PAULO, Aug 15 (Reuters) - Banco do Brasil (BBAS3.SA) , opens new tab is facing the highest default level ever recorded in its agribusiness loan portfolio , opens new tab, CEO Tarciana Medeiros said on Friday, adding that the deterioration had not been anticipated even in the most pessimistic forecasts. The state-run lender on Thursday reported weaker-than-expected second-quarter results , opens new tab and announced a sharp cut to its full-year outlook, following an already challenging , opens new tab first quarter marked by high delinquency in the agribusiness segment. Sign up here. Most of the defaults stem from soybean, corn, and cattle producers in Brazil's center-west and southern regions, Medeiros said during a call with analysts. "We have a portfolio of over 600,000 clients, of which 20,000 are in default. And 74% of them had never been in default until December 2023," she said. Many farmers in Brazil - a top global supplier of grains, coffee, meat, cotton and sugar - have struggled in recent years with bad weather, high interest rates , opens new tab and elevated input costs, leading to an increase in the number of bankruptcy filings. Banco do Brasil reported a 90-day default ratio of 3.49% in the sector in the April-to-June period, up from 3.04% in the previous quarter and 1.32% a year earlier. The bank, long seen as a pillar of farm credit in the South American agricultural powerhouse, expects the sector to continue to hurt its results in the very short term, Medeiros said. She pointed to a "still stressed" third quarter and said the lender did not want market participants to have unrealistic expectations, as it has debt from the 2024/25 season maturing through September. The bank hopes that favorable weather conditions, forecasts for a bumper 2025/26 grain crop and improving commodity prices will help lower delinquency in agribusiness in the new season. Banco do Brasil expects some improvement in its overall results from the fourth quarter onwards, driven by net interest income growth. Its shares fell as much as 4% in early Sao Paulo trading, before reversing course to trade up 1%. They had plunged more than 30% since the weaker-than-expected first quarter results and are still down 13% year-to-date. "Certainly a weak quarter, but somewhat expected," analysts at Itau BBA said in a note to clients. "We remain cautious, looking for more visibility on the still-worsening credit quality trends, but do not expect a major negative reaction," they added. ($1 = 5.3934 reais) https://www.reuters.com/world/americas/banco-do-brasil-facing-record-agribusiness-default-levels-ceo-says-2025-08-15/

2025-08-15 15:00

India tax cut plan aims to boost growth in face of US tariffs Government plans a two-rate GST structure of 5%, 18% India plans to do away with 12%, 28% tax rates Plans to charge 5% tax on 99% of items that are charged 12% NEW DELHI, Aug 15 (Reuters) - India's government will slash the consumption tax it charges consumers and businesses by October, a top official said on Friday, hours after Prime Minister Narendra Modi announced sweeping tax reforms to boost the economy in the face of a trade conflict with Washington. The federal government will propose a two-rate structure of 5% and 18%, doing away with the 12% and 28% tax that was imposed on some items, said the government official, who declined to be named as the plans are still private. Sign up here. The plan is to bring "99%" of all the items that are in 12% category to 5%, the official said. That tax slab includes butter, fruit juices, and dry fruits, and any cuts to the basket could benefit the likes of Nestle (NESN.S) , opens new tab to Hindustan Unilever (HLL.NS) , opens new tab to Procter & Gamble (PG.N) , opens new tab. The tax cut plan comes amid growing tensions between New Delhi and Washington on steep U.S. tariffs on Indian goods. Modi on Friday made a public appeal to promote domestic products, and his supporters have been calling for boycott of American products. Addressing the nation on its 79th independence day, Modi earlier said that the goods and services tax would be reformed and taxes lowered by Diwali, the Hindu festival of lights, set to be celebrated in October this year. "This Diwali, I am going to make it a double Diwali for you. Over the past eight years, we have undertaken a major reform in goods and services tax. We are bringing next-generation GST reforms that will reduce the tax burden across the country," Modi said. The final decision will be taken by the GST (goods and services taxes) Council, which is chaired by the finance minister and has all the state's finance ministers as members, the official said. The council is set to meet by October. Citi estimates that about 20% of items - including packaged food and beverages, apparel and hotel accommodation - fall under the 12% GST slab, accounting for 5-10% of consumption and 5-6% of GST revenue. If most of these are moved to the 5% slab and some to the 18% slab, it could lead to a revenue loss of around 500 billion rupees, or 0.15% of GDP, potentially taking the total policy stimulus for households in the current 2025-26 financial year to 0.6%-0.7% of GDP, the brokerage said. https://www.reuters.com/world/india/india-plans-sweeping-consumption-tax-cuts-by-october-boost-economy-2025-08-15/

2025-08-15 14:39

Kyivstar first Ukrainian company to trade on US exchange Listing coincides with Trump-Putin talks over peace deal Shares down 9% in early trading Company raised $178 mln, having targeted up to $200 mln Aug 15 (Reuters) - Kyivstar (KYIV.O) , opens new tab shares dropped over 9% on Friday after the mobile operator became the first Ukrainian company to list in the United States, just hours before a summit between U.S. and Russian leaders to discuss a potential peace deal in Ukraine. The meeting in Alaska between U.S. President Donald Trump and Russian President Vladimir Putin could be a step towards ending a war that has crippled Ukraine's economy, although with Kyiv absent from the talks expectations are low. Sign up here. "We will be the best asset for the international investment community to invest in Ukraine, to invest in the Ukrainian recovery, to invest in the Ukrainian support," Kyivstar CEO Oleksandr Komarov told Reuters in an interview, adding that a peace deal would help to boost the company's value.. Kyivstar's shares were down 9.3% to $11.5 at 1400 GMT, following their Nasdaq debut. Komarov had warned that Kyivstar's first few weeks of trading would be volatile, adding that a turbulent external environment was already incorporated in its valuation. STRENGTHENING LINKS TO U.S. Komarov said the company chose Nasdaq, where its Dubai-headquartered parent VEON is also listed, over London or Warsaw because it was even more important to "strengthen the link between the United States and Ukraine rather than between Ukraine and Europe". The company has deepened its U.S. ties during the conflict, appointing former U.S. Secretary of State Mike Pompeo to its board and signing a deal with Elon Musk's Starlink for satellite services. Kyivstar is the biggest mobile operator in Ukraine with 24 million subscribers. Founded in 1994, it became part of VEON in 2010. Apart from telecoms, Kyivstar owns digital health platform Helsi and ride-hailing firm Uklon. VEON, which is retaining a majority stake in Kyivstar, pitched the listing as an opportunity for foreign investors to bet on Ukraine's reconstruction. But its success hinges in part on a peace deal being achieved. Activist investor Shah Capital, which has said it will indirectly own over 6% of Kyivstar, told Reuters in an emailed statement that it still expected a "decent part of frozen Russian funds to be used to rebuild Ukraine as part of this ongoing process of peace efforts". Shah is one of VEON's largest shareholders and was the first to publicly urge the group to list its Ukrainian business last year. Kyivstar carried out the listing by merging with fintech entrepreneur Betsy Cohen's special purpose acquisition company. The company raised $178 million. Reuters had previously reported that Kyivstar expected to raise up to $200 million. Komarov said the Nasdaq debut showed what Ukrainian companies could accomplish by accessing international markets and that prominent Ukrainian business leaders had spoken to him in recent months about Kyivstar's listing strategy. "This is one of the dimensions of our integration into the Western world that should be developed and should be supported," he said. https://www.reuters.com/business/media-telecom/ukraines-kyivstar-lists-new-york-peace-talks-unfold-alaska-2025-08-15/

2025-08-15 13:27

Markets await Trump-Putin Alaska summit Conflict roiled world markets Investors eye longevity of deal, detail Ukraine bonds, euro seen benefiting from any ceasefire LONDON, Aug 15 (Reuters) - World markets are watching closely as U.S. President Donald Trump and Russia's Vladimir Putin meet in Alaska later on Friday to seal a possible ceasefire agreement in Ukraine. This is a conflict that sparked an energy shock, sent food prices soaring, battered European assets and cut Russia's economy off from much of the Western world. Sign up here. Details and the longevity of any agreement will be key, and for now investors are on standby. Ukraine's government bonds - key indicators of the mood - in recent days have largely stalled at a still-distressed 55 cents on the dollar. "The big issue will be, of course, that even if we get a ceasefire, how sustainable is that?" said Zurich Insurance Group's chief markets strategist Guy Miller. Here is a summary of how Europe's biggest conflict since World War Two has shaped markets and what impact a ceasefire agreement could have. 1/ EUROPE HURT Europe's reliance on cheap Russian gas meant its economy and stock market were ill-equipped to handle surging energy prices, and Germany's economy, Europe's industrial powerhouse, stagnated. Stocks (.STOXX) , opens new tab were broadly punished, with sectors reliant on low energy prices, such as industrials (.SXNP) , opens new tab and chemicals (.SX4P) , opens new tab, notably hit. European banks also took a drubbing but have since recovered as those exposed to Russia cut ties. It has not been all doom and gloom and the European STOXX 600 index is not far off March's record high. Aerospace and defence stocks (.SXPARO) , opens new tab have had a supercharged rally since February 2022, with gains ranging from over 600% for Leonardo (LDOF.MI) , opens new tab to over 1,500% for Rheinmetall (RHMG.DE) , opens new tab. "If the fighting stops in Ukraine, I'd expect defence stocks to come off a little bit but I think the fundamental reason why defence stocks have rallied is still there," said Toni Meadows, CIO at BRI Wealth Management. "If Putin is still there and Trump is still there, then the need for Europe to spend on defence is still there." 2/ HEATED The invasion triggered a surge in European energy prices. Brent crude rose as much as 30% to $139 a barrel, while natural gas prices soared nearly 300% to record highs. Crude subsided in the following months. But Dutch TTF futures, the regional benchmark for natural gas, soared as Europe scrambled for an alternative to the Russian gas that fed over 40% of total demand. Europe has since become increasingly reliant on U.S. super-chilled liquefied natural gas. The European Union has committed to boosting its purchases of U.S. crude, gas and coal from around $75 billion in 2024 to $250 billion per year to 2027, under a new U.S. trade deal - a figure most experts say is unrealistic. Oil and gas prices are below 2022 peaks, but they are higher than five years ago, up 50% and 300%, respectively. 3/ GENIE OUT OF THE BOTTLE Following the COVID-19 pandemic, the war ensured the inflation genie was well out of its bottle as energy and food prices soared while agricultural exports from Russia and Ukraine - two leading grain exporters - were disrupted. Central banks backtracked on the notion that an inflation spike was "transitory" and aggressive interest rate hikes followed. Since late 2022, inflation and rates have come down in big economies and focus shifted to U.S. tariffs. High food prices remain a concern, especially for developing economies. World food commodity prices rose in July to their highest in over two years, according to the United Nations' Food and Agriculture Organization. "If Ukraine could operate normally as an economy, that would help food prices around the world," said April LaRusse, head of investment specialists at Insight Investment. 4/ UKRAINE AND RUSSIA Ukraine's economy was battered by the war. The country was forced to restructure $20 billion of its government debt last year as it could no longer afford the repayments given the demands of the conflict. Its bonds , then rallied on hopes that a re-elected Trump would broker a peace deal but plunged following increasingly ugly exchanges between Trump and Ukraine's Volodymyr Zelenskiy that culminated in February's infamous Oval Office meeting. The bonds recovered some ground again this week. Russia's economy also contracted after the West introduced sweeping sanctions but soaring defence spending led to a rebound in 2023 and 2024. After jacking up rates to combat the subsequent inflation spike though, some Russian officials now warn of recession risks. Russia's rouble sank to a record low soon after the invasion, but rebounded to seven-year highs later in 2022 as imports dried up. It is up nearly 40% against the dollar this year. Russia and China meanwhile now do more of their trade in the yuan, which has overtaken the dollar as Russia's most traded foreign currency. 5/CURRENCIES UPENDED The war hit the euro , which fell almost 6% against the dollar in 2022 as the economic impact was felt. Analysts say any improving sentiment created by a ceasefire could help the euro, but note that other factors, such as monetary policy were also key. "The euro might benefit, but we wouldn't see this as a game changer for the currency," said Frederique Carrier, head of investment strategy for RBC Wealth Management in the British Isles and Asia. While safe-havens such as the dollar and Swiss franc benefited , , the conflict shaped currencies in other ways. Analysts say the use of sanctions against Russia and a decision by the West to freeze some $300 billion of Russian state assets in 2022 has accelerated de-dollarisation, in short, efforts by countries to decrease reliance on the dollar. https://www.reuters.com/world/europe/what-russia-ukraine-ceasefire-deal-could-mean-global-markets-2025-08-15/

2025-08-15 12:52

Russia to sell stake in gold producer to Gazprombank unit Prosecutors seized stake from billionaire last month Majority stake valued at $1.06 billion Russia has escalated asset seizures this year MOSCOW, Aug 15 (Reuters) - Russia will sell a majority stake in gold producer Uzhuralzoloto (UGLD.MM) , opens new tab it seized from businessman Konstantin Strukov to a unit of state-owned Gazprombank (GZPRI.MM) , opens new tab, the Interfax news agency cited the finance ministry as saying on Friday. Foreign companies have grappled with the risk of state seizure since Russia sent troops into Ukraine in February 2022, but Moscow, citing strategic stability and domestic security, has increasingly turned its attention to domestic assets too. Sign up here. Russia's general prosecutor's office last month won a lawsuit to transfer ownership of Strukov's shares in Uzhuralzoloto (UGC), Russia's fourth-largest gold producer, to the state, after prosecutors alleged that Strukov had obtained property "through corruption". Reuters sought comment from Strukov through UGC, which did not immediately respond to a request for comment. The businessman, whose fortune is estimated by Forbes at $1.9 billion, was placed under sanctions by some Western countries, including Britain, which has said his work as a director of a company in the Russian extractives sector supported the Russian government. UGC itself is under U.S. sanctions. Interfax quoted deputy finance minister Alexei Moiseev as saying the state would sell the majority stake, valued at 85 billion roubles ($1.06 billion), to UGC's large minority shareholder, which was not specified. "We want (to do it) this year," Interfax quoted Moiseev as saying. "This is one of the assets we plan to sell as soon as possible." UGC shares were up 0.1% on the day, underperforming the wider MOEX index, which was 0.7% higher. Gazprombank did not immediately respond to a request for comment. ASSET SEIZURES The UGC case is the latest in a growing series of asset seizures initiated by Russian prosecutors, which have seen some $50 billion transferred to state coffers over the past three years, according to research published in July. Strukov owned a 67.8% stake in UGC, according to company data as of the end of 2024. A company connected to Gazprombank, AAA Capital, bought a 22% stake late last year and the remaining 10% of shares floated on the Moscow Exchange in 2023 and 2024 in two public offerings. Since 2000, Strukov has served on Chelyabinsk Region's legislative assembly. He is deputy speaker of the region's parliament and a member of the ruling United Russia party. Dmitry Malbin, a lawyer who represented UGC in court, has said that UGC complies with the law and had never benefited from Strukov's position in the Chelyabinsk assembly. ($1 = 80.0000 roubles) https://www.reuters.com/business/finance/russia-sell-seized-stake-gold-producer-ugc-unit-gazprombank-ifax-reports-2025-08-15/