2025-01-08 19:21

USDA says new vaccines will match current virus strain Current outbreak has killed over 130 million birds in all 50 states Trade risks hinder immediate vaccine deployment, Agriculture Secretary Vilsack has said Jan 8 (Reuters) - The U.S. will rebuild a stockpile of bird flu vaccines for poultry that match the strain of the virus circulating in commercial flocks and wild birds, the Department of Agriculture said on Wednesday, in a sign of the widespread and devastating nature of the nation's persistent outbreak. The outbreak, which began in poultry in early 2022, has killed more than 130 million commercial, backyard and wild birds in all 50 states, according to the U.S. Centers for Disease Control and Prevention. Deaths of millions of egg-laying hens pushed wholesale egg prices to record highs last month. Bird flu is also circulating among dairy cattle herds and has infected nearly 70 people, most of them farm workers exposed to sick poultry or cattle. The U.S. reported its first human death related to bird flu on Monday. The U.S. built a poultry vaccine stockpile after the prior major bird flu outbreak in 2014 and 2015, though the vaccines were never used, the agency said in a press release. "USDA believes it is prudent to again pursue a stockpile that matches current outbreak strains," the release said. Egg and turkey farm groups have called for deploying a vaccine, citing the economic toll for farmers of killing their flocks. Agriculture Secretary Tom Vilsack has said such deployment would not be possible in the short term, in part due to trade risks. Many countries ban imports of vaccinated poultry over concerns the vaccine could mask the presence of the virus. The vaccines purchased by USDA following the prior bird flu outbreak were developed by Merck & Co (MRK.N) , opens new tab, Ceva (CEVA.O) , opens new tab and one by U.S. government researchers, said David Suarez, who was acting laboratory director of the USDA’s Southeast Poultry Research Laboratory in Athens, Georgia, in a 2023 interview. "All the vaccines they purchased expired, and they threw it away," Suarez said in 2023. Suarez at the time said there was limited appetite for rebuilding a vaccine stockpile until it was likely birds would be vaccinated. "There's not an appetite of using the limited resources on something that only has a shelf life of two to three years," he said. Animal health company Zoetis (ZTS.N) , opens new tab reached out to USDA during the 2022 outbreak and was told the government did not plan to make new purchases for its vaccine stockpile, the company said in 2023. The USDA also said it has enrolled 28 states in its national bulk milk testing program to detect bird flu in dairy herds, and that testing so far had not detected new infected herds in states that previously were virus-free. In the past 30 days, USDA has reported infected herds in California and Texas, according to agency data. Sign up here. https://www.reuters.com/business/healthcare-pharmaceuticals/us-build-new-stockpile-bird-flu-vaccine-poultry-2025-01-08/

2025-01-08 19:12

NEW YORK, Jan 8 (Reuters) - U.S. crude oil imports from Canada rose last week to the highest on record, data from the U.S. Energy Information Administration (EIA) showed on Wednesday, ahead of incoming U.S. president Donald Trump's plans to levy a 25% tariff on Canadian imports. Trump, who has long complained about Canada's trade surplus with the U.S., on Tuesday threatened to use economic force to turn Canada into the 51st U.S. state. He previously said he will apply tariffs on imports from Canada and Mexico immediately after his inauguration on Jan. 20. Canada has been the top source of U.S. oil imports for many years, and supplied more than half of the total U.S. crude imports in 2023. Many U.S. oil refiners, especially in the Midwest, are geared specifically to run heavier crude oil grades sourced from Canada. U.S. crude oil imports from Canada rose by 689,000 barrels a day in the week ended Jan. 3 to 4.42 million barrels a day, the highest in records going back to June 2010, the EIA data showed. That was the biggest week-over-week jump in imports from Canada since the week ended July 12, 2024. "Canada obviously matters a lot, and there's a lot of two-way trade," said Josh Young, chief investment officer at Houston, Texas-based investment firm Bison Interests. Total U.S. imports of crude oil fell by 498,000 bpd to 6.43 million bpd last week, the lowest in a month, EIA data showed. The jump in imports from Canada could also be due to strong Canadian output, Kpler analyst Matt Smith said. He noted that Canadian onshore stockpiles have risen from a 4-year low in October, even as exports from the Westridge terminal at the Port of Vancouver, supplied by the Trans Mountain pipeline, have been steady. Sign up here. https://www.reuters.com/markets/commodities/us-oil-imports-canada-hit-record-ahead-tariff-threat-eia-data-shows-2025-01-08/

2025-01-08 17:58

NEW YORK, Jan 8 (Reuters) - Longer-term U.S. Treasury yields have surged to multi-month highs, outpacing a rise in shorter-dated yields, with some of the disparity reflecting anticipation that the incoming Trump administration will need to change the current focus on relying more on short-term debt, traders say. President Joe Biden's Treasury Secretary Janet Yellen has increased sales of Treasury bills, debt maturing in one year or less, which have seen strong demand from money market investors. But that has taken the portion of bills above the recommended levels for the overall debt outstanding, a process that will likely need to be addressed by President-elect Donald Trump's nominee for Treasury chief Scott Bessent. “The market is building more term premium into the long end to account for the fiscal situation, the deficit, and potentially a lot more issuance in the long end of the curve as they unwind the Yellen policy,” said Dan Mulholland, head of rates – trading and sales at Crews & Associates. Ten-year yields were below those on two-year notes until around September and have been rising at a faster pace since June. Ten-year yields reached 4.73% on Wednesday, the highest since April, while two-year yields have held relatively steady at 4.27%. Traders say that abundant supply of short-term debt was a factor keeping the U.S. Treasury yield curve inverted for longer than is usual, from around July 2022 to September, which is now being reversed. "That kept the yield curve inverted, and now I think there's a feeling that that's not the way to do it," said Tom di Galoma, head of fixed income trading at Curvature Securities. An expected increase in longer-dated debt is not the only factor pushing yields higher. Trump’s policies are expected to boost growth and potentially inflation, both of which will lead to higher interest rates. The Treasury often uses sales of short-term debt as a kind of shock absorber that it can increase or decrease when it faces large swings in its borrowing needs. But longer-term, market observers say it's unwise to rely too much on short-term debt, as it increases refinancing risks if market conditions turn. Outstanding Treasury debt has surged to $36 trillion from $23 trillion in late 2019 as the government relies more on debt to finance spending and plug its budget deficit, which analysts expect will continue to worsen for the foreseeable future. Treasury bills now account for 22% of debt, above the 15-20% recommendation by the Treasury Borrowing Advisory Committee. They reached 25% in 2020 as the government ramped up spending related to COVID-related business closures. They then fell back to around 15% in 2022 but have taken a larger share of overall debt issuance since. While the Treasury is not expected to immediately increase its longer-dated debt auctions, market participants have begun pricing for the likely eventuality and will watch the U.S. government’s quarterly refunding announcements for signals on when it will likely begin. “Trump's Treasury Secretary is not going to cause disruption in the market by suddenly changing the auction sizes, but it could be that in late April, early May, that we start to see announcements for higher coupon auction sizes,” said Will Compernolle, macro strategist at FHN Financial. He added that increases in longer-dated debt may begin in the summer. Sign up here. https://www.reuters.com/markets/rates-bonds/treasury-yield-surge-reflects-expectations-more-long-term-debt-2025-01-08/

2025-01-08 17:27

LONDON, Jan 8 (Reuters) - Mulvaney Capital Management returned 82.97% in 2024, up from a 51.22% result in 2023, according to an investor letter seen by Reuters on Wednesday. Mulvaney, which oversees $352 million in assets, trades in futures and financial markets globally, including smaller commodity markets the letter said. Cocoa and coffee closed 2024 , opens new tab as the biggest gainers among commodities for a second year on a global supply deficit. Managed futures funds, returned 1.9% for 2024 to the end of November, according to hedge fund research firm PivotalPath. Sign up here. https://www.reuters.com/business/finance/mulvaney-capital-management-returned-8297-2024-investor-letter-says-2025-01-08/

2025-01-08 17:18

LONDON, Jan 8 (Reuters) - Credit manager Sona Asset Management returned 18.76% in its Credit Master Fund in 2024, benefiting from a surge in European companies needing to refinance their debt, an investor letter seen by Reuters on Wednesday showed. This is the $10.1 billion manager's fifth year of double digit returns in its key fund. In 2024, its capital solutions strategy posted returns in different funds of between 15.6% and 19.7%. The firm's collateralized loan obligations (CLOs) platform continued to perform in the top quartile of CLOs ranked by Deutsche Bank. These did not have specific annual percentage returns mentioned in the letter. Investment firms that provide financing to companies in exchange for interest payments saw loan issuance nearly three times 2023 levels, while companies seeking to offer junk bonds increased by 100%, the letter said, citing research from Barclays. This influx in volume and increased bank competition led to some deals being mispriced and needing 'strategic support,' said the letter. Sona, which takes both long and short positions, said this contributed to the hedge fund's success. Sona took advantage of private credit deals - particularly companies that were given money in 2022 and 2023, re-classed as riskier and refinance in public markets rather than return to private investors, the letter said. They did not name any specific deals. Europe's historical under-spend on defence might benefit some companies in 2025, the letter said, without naming which companies it was interested in. Other sectors of interest this year include auto suppliers, real estate companies which will need to borrow at higher rates, debt collectors, UK water companies, energy, satellite companies and finance. They are still optimistic about Europe, however. "There is a path away from this morass. The prospect for peace has grown and the potential for policy to improve and alter course is there," it said, referring to the potential for an end to the war in Ukraine. (This story has been corrected to clarify that the company benefited from conditions in private credit, not the hedge fund, in paragraph 8) Sign up here. https://www.reuters.com/business/finance/sona-asset-management-returns-over-18-european-debt-markets-letter-says-2025-01-08/

2025-01-08 14:22

SAO PAULO, Jan 8 (Reuters) - Industrial production in Brazil fell for the second month in a row in November, data showed on Wednesday, in a sign the economy may be cooling as the central bank tightens monetary policy to tame inflation. Production was down 0.6% in November from October, more than the 0.5% decline projected in a Reuters poll of economists, with output falling in the four main categories surveyed. In the previous month, production had declined 0.2%. Tighter financial conditions, increased economic uncertainty and the recent sell-off in the Brazilian real have put pressure on the sector, according to Andres Abadia, Pantheon Macroeconomics' chief Latin America economist. "The outlook for the sector in the first half of 2025 is deteriorating, primarily due to tight financial conditions. But the lagged effect of fiscal support and still-resilient domestic demand suggest that some sub-sectors will continue to perform relatively well," he said. Compared to a year earlier, industrial production in November grew 1.7%. Sign up here. https://www.reuters.com/world/americas/brazils-industrial-output-falls-second-straight-month-2025-01-08/