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/

2025-08-15 12:50

LONDON, Aug 15 (Reuters) - Britain's bioethanol industry is facing imminent collapse after the government said it would not provide financial support to a sector hit by the UK's tariff deal with U.S. President Donald Trump. "We ... have taken the difficult decision not to offer direct funding as it would not provide value for the taxpayer or solve the long-term problems the industry faces," a government spokesman said on Friday. Sign up here. Under May's trade deal, the UK's 19% tariffs on U.S. ethanol fell to zero, through a 1.4 billion-litre (370 million gallon) quota - a figure equating to the size of the UK's entire ethanol market. Britain has two major bioethanol plants in northern England - Associated British Foods' (ABF.L) , opens new tab Vivergo plant and one operated by Ensus, owned by Germany's Sudzucker Group - which account for nearly all of the UK's production capacity. AB Foods said in June it would close the Vivergo plant by September unless the government stepped in with an aid package. Ensus has also said its plant faces closure. A spokesperson for AB Foods said it was "deeply regrettable that the government has chosen not to support a key national asset." Ensus did not respond immediately to a request for comment. Both companies have said that the trade deal, along with existing regulations that give U.S. producers an advantage in the British market, had made the environment impossible. The industry supports thousands of UK jobs. Bioethanol is produced from crops such as wheat and is used to make petrol greener and to make sustainable aviation fuel. https://www.reuters.com/business/healthcare-pharmaceuticals/britain-refuses-bail-out-bioethanol-industry-hit-by-trump-trade-deal-2025-08-15/

2025-08-15 12:49

Area burned in Spain this year equivalent to the size of London Conditions causing fires to spread at speeds hard to control Portugal activates EU assistance mechanism VILLANUEVA DE LA SIERRA, Spain, Aug 15 (Reuters) - Spain battled 14 major fires driven by high winds and aggravated by heat on Friday as authorities warned of "unfavourable conditions" to tackle flames that have already killed seven people and burned an area the size of London. Firefighters have been battling to put out blazes across southern Europe in one of the worst summers for wildfires in 20 years. And a nearly two-week heatwave and southerly winds were worsening the situation in Spain, Virginia Barcones, director general of emergency services, said on Friday. Sign up here. "In the western part of the country the situation is extremely worrying," Barcones said on RTVE. In Galicia, several fires converged to form a large blaze, forcing the closure of highways and rail services to the region. As fire spread from Galicia's Ourense province to neighbouring Zamora, provoking evacuations, some stayed behind to protect their homes. "We are waiting for the fire to come down to try and stop it, so it does not get to the houses," Loli Baz, 52, told Reuters from the village of Villanueva de la Sierra in Zamora. Spain's national weather agency AEMET warned of extreme fire risk in the north and west of the country, as temperatures are expected to reach up to 40 degrees Celsius (104 degrees Fahrenheit) on the north coast. "Today will be another very difficult day, with an extreme risk of new fires," Prime Minister Pedro Sanchez wrote on X. FIRES SPREADING QUICKLY A fire near Molezuelas de la Carballeda in the Castile and Leon region - one of the largest in Spain's history - had not advanced since Thursday. That wildfire had, at one point, been spreading by 4,000 hectares (15.4 square miles) per hour, said Eduardo Diego, national government representative for the region. A fire near Badajoz in the Extremadura region, meanwhile, burned 2,500 hectares in a few hours before being brought under control. "It was very fast with enormous growth, but it has been possible to tackle it," Jose Luis Quintana, the national government representative for the region, told RTVE. The fires caused the closure of more than half a dozen roads on a busy bank holiday weekend, leaving travelers stuck at the height of summer holidays. In the town of Oimbra in Ourense province, where three firefighters were seriously injured, a man was arrested for causing a fire by using his tractor when it was prohibited, police said. Two people were also arrested in Costa da Morte in Galicia for provoking fires by illegally burning copper cables to extract the metal, according to the Interior Ministry. Wildfires have burned more than 157,000 hectares in Spain so far this year, almost double the annual average, according to the European Union's Forest Fire Information Service. In neighbouring Portugal, meanwhile, thousands of firefighters were battling five large blazes in central and northern parts of the country, with one fire in Trancoso, some 350 km northeast of Lisbon, now raging for six days. Around 300 residents were evacuated on Friday from the village of Covanca near Piodao, an area of central Portugal popular with tourists, after a wildfire broke out on Wednesday. Portugal has activated the EU mechanism for assistance and requested four Canadair planes, according to civil protection commander Mario Silvestre. https://www.reuters.com/business/environment/spain-battles-14-major-fires-with-more-expected-2025-08-15/