2025-08-14 21:35
SAO PAULO, Aug 14 (Reuters) - Brazilian sugarcane processor Raizen (RAIZ4.SA) , opens new tab admitted the possibility of a new shareholder after weak results, which caused the company's stock plunge to a record low on Thursday. WHY IT'S IMPORTANT Raizen, one of the world's largest sugar producers, is controlled by Shell (SHEL.L) , opens new tab and Brazilian conglomerate Cosan (CSAN3.SA) , opens new tab. It faces operational challenges and high debt. Sign up here. In a conference call following the results, executives said the company will face operational transformation and portfolio simplification in the next two or three years, which could be accelerated by a capital injection. BY THE NUMBERS Raizen reported a net loss of 1.8 billion reais ($333.12 million) for the first quarter of the 2025/26 crop year. Core earnings fell 23.4% year-on-year to 1.89 billion reais, missing the 2.16 billion reais forecast by analysts polled by LSEG. Its leverage ratio jumped to 4.5 from 2.3 a year earlier, with net debt rising 55.8%. WHAT'S NEXT Raizen has been adopting measures to deal with a large debt load, including divestitures and shutting down a major mill. The firm's Chief Financial Officer Rafael Bergman told the call that divestitures should continue, with updates likely in the coming quarters. Ongoing discussions include the possibility of a capital injection that could involve current or new shareholders, but there is still no certainty about whether this potential operation will take place, he said. Newspaper Valor Economico reported later on Thursday citing sources that Raizen hired an investment bank to look for a new minority partner. The firm declined to comment on the report. KEY QUOTES "Obviously, this (potential operation) requires a degree of coordination with Shell and Cosan so that we can evaluate mechanisms to accelerate our journey and reduce execution risks in a plan that, from an operational standpoint, is quite clear and has a high degree of confidence in its success," Bergman said. MARKET REACTION Raizen's shares plunged as much as 15% to an all-time low, on track for their worst day ever during the afternoon. The stock was the worst performer on Brazil's Bovespa index (.BVSP) , opens new tab. BTG Pactual analysts were unimpressed, saying Raizen's operational preview last month already indicated lower profitability amid lower yields and higher unit costs, along with maintenance stoppages at an Argentine refinery. "With a net debt cost of 1.6 billion reais in the quarter (6.2 billion annualized), Raizen needs to accelerate the deleveraging process," they added. ($1 = 5.4034 reais) https://www.reuters.com/sustainability/climate-energy/shares-sugar-maker-raizen-hit-record-low-executives-open-new-partner-2025-08-14/
2025-08-14 21:03
ORLANDO, Florida, Aug 14 (Reuters) - TRADING DAY Making sense of the forces driving global markets Sign up here. By Jamie McGeever, Markets Columnist A surprise spike in U.S. producer price inflation took the wind out of stock markets' sails on Thursday and prompted investors to reassess their view that an interest rate cut next month was a near certainty. More on that below. In my column today I look at five charts that show the foundations underpinning the U.S. economy and Wall Street may be shakier if you strip out the AI- and tech-related spending. If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today. Today's Key Market Moves Today's Talking Points: * The Fed outlook. Rates traders trimmed the probability of a quarter-point rate cut next month to 90% from 100% after the release of July's producer price inflation data. Core annual PPI shot up to 3.7%, the highest in three years. Excluding pandemic distortions, the jump from June's 2.6% was the biggest since comparable data was first gathered in 2011. Talk of a 50-basis point cut next month, partly fueled by Treasury Secretary Scott Bessent on Wednesday, has evaporated. The PPI data ensured that, but Bessent also rowed back a bit on Thursday. Another couple of solid inflation and employment reports, and could a September cut be taken off the table completely? * European GDP. The first estimate of Q2 UK growth was released on Thursday and broadly speaking, the 0.3% expansion was better than expected - or not as bad as feared, depending on your view. Indeed, Britain's economy grew nearly twice as fast as the U.S. economy in the first half of the year. Euro zone GDP was less stellar, with a slump in industrial production in June and downward revision to May capping overall GDP growth in the April-June period at just 0.1%. That marked a clear slowdown from 0.6% expansion in the first quarter. The elephant in the room, of course, is the impact of tariffs, which has yet to be fully felt, suggesting the second half of the year is likely to be bumpier than the first. * Do you want to make a deal? Donald Trump and Vladimir Putin meet in Alaska on Friday, with the U.S. President saying his Russian counterpart is keen to "make a deal" on Ukraine. The aim of Friday's talks is to set up a second meeting including Ukraine, and perhaps agree the framework for a ceasefire. Despite his harsher tone toward Putin over the past months, Trump has a long history of trying to placate the Russian leader. The Trump administration has sought to temper expectations, and White House press secretary Karoline Leavitt told reporters on Tuesday the meeting would be a "listening exercise." That's probably not what Ukrainian President Volodymyr Zelenskiy wants to hear. The U.S. economy's key weak spots in five charts The U.S. economy seems to be chugging along fairly smoothly, if a little too slowly for some observers' liking. Under the bonnet, however, the picture is more worrisome, and the risk of engine malfunction is rising. Technology's role in the U.S. economy has never been greater, and artificial intelligence could deliver a historic productivity boom. But return on the huge investment being made on that bet could take years to materialize. What's more, an unbalanced economy may not be desirable in the long term, as it can lead to poor investment and policy decisions. Below are five charts that indicate the foundations of the resilient U.S. economy and booming stock market may be much shakier than they appear, especially if AI- and tech-related spending, investment and optimism are stripped out. INVESTMENT Inflation-adjusted investment in 'AI-sensitive' sectors of the economy since the end of 2019 has risen 53%, notes Troy Ludtka, senior U.S. economist at SMBC Nikko Securities. Investment elsewhere has inched up just 0.3%. CONTRIBUTION TO GDP Relatedly, the contribution of software and IT equipment capex to U.S. GDP has never been higher, according to analysts at BlackRock. Aggregate capex in all other areas of the economy, however, actually fell in the first half of this year – a rare occurrence. CONSUMER SPENDING Meanwhile, personal consumption expenditures are slowing sharply, a worrying sign given that the consumer accounts for around 70% of total U.S. GDP. Personal consumption expenditures in the second quarter grew by only 0.9%, the slowest pace since the pandemic. And in real terms, consumer spending has completely flat-lined in the first half of the year. CORPORATE BANKRUPTCIES Corporate bankruptcies in July were the highest for a single month since July 2020, according to S&P Global Market Intelligence. Even more alarming, the tally of year-to-date bankruptcy filings through the end of July was the highest for this seven-month period since 2010. Nearly a third of this year's bankruptcies were in the consumer discretionary and industrial sectors. STOCK MARKET CONCENTRATION Finally, the concentration on Wall Street has been widely discussed, but the levels continue to be eye-popping. One stock, chipmaker Nvidia, accounts for 8% of the benchmark S&P 500's entire market cap. That's a record for a single name. And the top 10 stocks, most of which are Big Tech megacaps, make up 40% of the index's market cap and 30% of all earnings. These are also record levels. The more Wall Street – and even global markets - rely on the revenue, earnings and profitability of a set of companies that can be counted on two hands, the bigger the potential mess could be if the trends driving these companies' performance lose momentum. What could move markets tomorrow? Want to receive Trading Day in your inbox every weekday morning? Sign up for my newsletter here. 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. https://www.reuters.com/business/global-markets-trading-day-graphic-2025-08-14/
2025-08-14 20:50
Aug 14 (Reuters) - Federal Reserve Chair Jerome Powell will give a speech on the economic outlook and the Fed's review of its policy framework next Friday at the Kansas City Fed's annual central banking conference in Jackson Hole, Wyoming, the Fed said on Thursday. Powell's speech comes as data showing some impact of tariffs on inflation but the job market is also slowing, a combination fueling expectations for the Fed to cut interest rates by a quarter of a percent when it meets next month. Sign up here. U.S. President Donald Trump wants lower rates and is looking for a replacement for Powell, whose term ends in May. https://www.reuters.com/world/us/fed-chair-powell-speak-aug-22-amid-speculation-rate-cuts-replacement-2025-08-14/
2025-08-14 20:49
Aug 14 (Reuters) - Ukraine's biggest mobile operator, Kyivstar, said on Thursday its shares will begin trading on the Nasdaq on August 15, making it the first Ukrainian company to be listed on a U.S. stock exchange. Kyivstar's parent, telecoms group VEON, has pitched this IPO to attract foreign investors betting on Ukraine’s reconstruction, which hinges on prospects for peace with Russia. Sign up here. The IPO coincides with a highly anticipated summit between U.S. President Donald Trump and Russian President Vladimir Putin in Alaska, a meeting closely watched by Ukraine and European nations as a potential turning point in peace negotiations. Robust activity in the U.S. IPO market has also encouraged companies to float shares among investors, who have shown renewed interest in new listings after a slump earlier this year caused by uncertainty from trade policy changes. Kyivstar, owned by telecoms group VEON, is the market leader in Ukraine with more than 24 million subscribers. Its revenue and profit have risen since Russia’s invasion, despite repeated cyberattacks and power outages. 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. Rothschild & Co acted as the lead financial advisor and capital markets advisor to VEON. https://www.reuters.com/world/europe/kyivstar-go-public-landmark-new-york-listing-august-15-2025-08-14/
2025-08-14 20:43
WASHINGTON, Aug 14 (Reuters) - White House trade adviser Peter Navarro said on Thursday that the Trump administration is likely to levy tariffs on pharmaceutical imports under a "Section 232" trade investigation because it's "very clear that we have a national security crisis" due to U.S. reliance on foreign producers in the sector. In an televised interview with CNBC, Navarro did not provide any details on the timing of the Section 232 probe. Sign up here. He said that President Donald Trump's executive order to shore up supply chains will provide price floors for domestic producers of drug ingredients through long-term strategic contracts that will ensure sufficient demand. At the same time, tariffs will deter dumping of pharma precursors from India and China, he added. https://www.reuters.com/business/healthcare-pharmaceuticals/white-houses-navarro-says-pharma-tariffs-likely-under-section-232-probe-2025-08-14/
2025-08-14 20:43
CIUDAD DE PANAMÁ,14 ago (Reuters) - El Canal de Panamá empezará pronto consultas con empresas potencialmente interesadas para lanzar en el primer trimestre del próximo año una licitación competitiva para la construcción y operación de dos nuevos puertos dentro de su zona, dijo una fuente involucrada en los preparativos. Los puertos forman parte de un amplio plan de expansión de negocios que la administración de la vía interoceánica está organizando para aumentar los servicios relacionados con el manejo de carga, incluyendo el transbordo, el almacenamiento y el transporte de gas, así como para asegurar el suministro de agua potable para sus operaciones. Sign up here. El proyecto surge en un momento en que el gobierno del presidente José Raúl Mulino maniobra para finalizar una concesión de 25 años a CK Hutchison, con sede en Hong Kong, para la operación de dos puertos clave ubicados en ambos extremos del Canal, en medio de críticas a los términos del contrato. CK Hutchison dijo el jueves que un acuerdo de 22.800 millones de dólares con un grupo liderado por BlackRock (BLK.N) , opens new tab y la naviera MSC para vender la mayor parte de su negocio portuario global, incluidos los dos puertos en Panamá, tenía una "posibilidad razonable" de concretarse. La Autoridad del Canal de Panamá (ACP) no respondió de inmediato a una solicitud de comentarios. Anteriormente, ha indicado que planea invertir unos 8,500 millones de dólares en los próximos cinco años para modernizar y ampliar su infraestructura. Un proyecto clave, incluido el de la construcción de una gran presa para contener el río Indio y crear un nuevo embalse, se discutirá en la Corte Suprema de Justicia panameña después de que las comunidades afectadas presentaran una demanda en su contra. "Nosotros estamos viendo que hay una demanda enorme por facilidades y terminales portuarias", declaró el jueves a periodistas el administrador de la vía interoceánica, Ricaurte Vásquez, sin dar más detalles. Otra licitación para la construcción de un gasoducto de gas licuado de petróleo (GLP) dentro de la zona del Canal también está en preparación y podría lanzarse el próximo año, añadió la fuente. https://www.reuters.com/markets/commodities/canal-de-panam-planea-lanzar-en-2026-licitacin-para-construir-y-operar-dos-2025-08-14/
