2025-07-10 21:00
ESMA peer review scrutinises Malta's crypto authorisation Review says authorisation process not thorough enough Maltese regulator says it welcomes the findings PARIS, July 10 (Reuters) - Malta did not do enough to assess the level of risk when granting a licence to a crypto company under the EU's new regulatory regime, the bloc's financial watchdog said on Thursday following an examination of the Maltese regulator. Reuters first reported in June that the European Securities and Markets Authority (ESMA) was scrutinising Malta's crypto authorisation process, after some regulators raised concerns in closed-door meetings about the speed with which licences were being granted by some states. Sign up here. Under the EU's Markets in Crypto-Assets (MiCA) regulation, which came into force this year and is the world's first comprehensive set of crypto rules, companies offering crypto services must obtain a licence from a national regulator. That licence can then be "passported" to allow companies to operate in other EU member states, but the rollout has raised concerns about inconsistent approaches and whether individual regulators can effectively supervise complex cross-border financial firms. The review into Malta focused on Malta's decision to grant a licence to one particular crypto company, without specifying which. ESMA launched the review in April "following a series of events", it said, without giving further details. Malta's Financial Services Authority (MFSA) said in a statement on Thursday that it was proud of its role as an "early adopter" of digital asset regulation and did not directly address ESMA's criticisms. Malta said it has granted five crypto asset service provider licenses under MiCA since January. ESMA's review found that while MFSA had enough expertise in crypto and enough resources to authorise and supervise crypto companies under MiCA, its authorisation process only "partially" met expectations. "The overall authorisation process should have been more thorough and conducted on a sufficient time to allow MFSA to properly assess compliance against the MiCA framework," the review said. ESMA found that material issues with the crypto company were unresolved or pending remediation when the licence was granted, adding that the company's supervisory history was not "adequately considered". The review recommended that Maltese regulators pay particular attention to crypto companies' business plans, conflicts of interest, governance arrangements, IT systems and their promotion of unregulated services. https://www.reuters.com/legal/government/eu-regulator-criticises-maltas-crypto-licensing-process-2025-07-10/
2025-07-10 20:52
LONDON, July 10 (Reuters) - The insurance cost of shipping goods through the Red Sea has more than doubled in recent days after Yemen's Houthis attacked and sank two ships, killing at least four seafarers after months of calm, industry sources said on Thursday. The Red Sea is a critical waterway for oil and commodities but traffic has dropped sharply since Houthi attacks off Yemen's coast began in November 2023 in what the Iran-aligned group said was in solidarity with Palestinians in the Gaza war. Sign up here. War risk premiums have risen to around 0.7% of the value of a ship, from around 0.3% last week before the latest attacks took place, sources familiar with the matter said, with some underwriters pausing cover for some voyages. Rates for a typical seven-day voyage period, which are set by individual underwriters, have been quoted this week at up to 1%, matching the peak level in 2024 when there were daily attacks. This adds hundreds of thousands of dollars in further costs for every shipment. "The recent attacks in the Red Sea have highlighted the need for caution when considering a transit," said Neil Roberts, head of marine and aviation with the Lloyd's Market Association, which represents the interests of all underwriting businesses in Lloyd's of London. A Houthi attack on the Greek ship Eternity C on Wednesday killed four of the 25 people aboard, maritime officials said. On Thursday, rescuers pulled four more survivors from the Red Sea. Houthi militants said they were holding some of the crew still missing. The attack followed the sinking of another Greek-operated vessel on Monday, which the Houthis claimed responsibility for. Some of their sister vessels had made calls to Israeli ports in the past year, an analysis of shipping data showed. The Houthis attacked more than 100 ships from November 2023 to December 2024. In May, the U.S. announced a deal to stop bombing the Houthis in return for an end to shipping attacks, though the Houthis said the deal did not include sparing Israel. Insurance industry sources said underwriters would try to avoid covering any vessel with links with Israel, even if it was indirect. "What we have seen in the last week appears to be ... a return to mid-2024 targeting criteria, which essentially involves any vessel with even a remote Israeli connection," said Munro Anderson, head of operations at marine war risk insurance specialist Vessel Protect. "With ambiguity comes risk." https://www.reuters.com/business/autos-transportation/red-sea-insurance-soars-after-deadly-houthi-ship-attacks-2025-07-10/
2025-07-10 20:45
RIO DE JANEIRO, July 10 (Reuters) - Brazil has logistical and commercial flexibility to preserve the competitiveness of its oil on the international market if the 50% tariff announced by U.S. President Donald Trump on Wednesday comes into effect on August 1, experts told Reuters. Oil is the main product on Brazil's export list to the U.S. and until now was exempt from the 10% tariff applied this year to Brazilian exports, but it is unclear whether that will remain the case with the new 50% tariffs. Sign up here. "These tariffs may generate short-term noise in trade flows and impact margins on spot contracts, but do not represent a structural risk," said BTG Pactual analysts Luiz Carvalho and Gustavo Cunha, in a report to clients. The Brazilian Petroleum Institute (IBP), that represents state-run oil firm Petrobras (PETR4.SA) , opens new tab and oil majors operating in Brazil, such as Shell (SHEL.L) , opens new tab, TotalEnergies (TTEF.PA) , opens new tab and Equinor (EQNR.OL) , opens new tab, said in a statement on Thursday that it views Trump's measure "with concern", and urged Brazil's government to act diplomatically. IBP had no information on whether the previously valid tariff exemption for oil would remain so after the announcement. In 2024, Brazil exported a total of 1.78 million barrels per day (bpd), of which 243,000 bpd were destined for the U.S., according to government data compiled by consultancy StoneX. Petrobras, Brazil's main producer, will not be significantly impacted by the tariffs, BTG analysts said. In the first quarter of the year, only 4% of its exports went to the U.S., according to company data. In terms of oil products, Petrobras' share of exports to the U.S. was 37% of a total of 209,000 bpd, or around 77,000 bpd. "Although the U.S. has a considerable share of derivatives exports, when we look in absolute terms, we believe that this is a small volume and that Petrobras should be able to redirect this export flow to another country with ease," said the BTG analysts. In a statement, Petrobras said that it is assessing the impact of the tariff announced the day before and maintains its strategy of always seeking "the best alternative for the company in any scenario". On Thursday, Petrobras' preferred shares were trading close to flat. https://www.reuters.com/business/energy/brazilian-oil-could-find-new-destinations-face-trumps-tariffs-2025-07-10/
2025-07-10 20:32
Brazil stocks slip, dragged by banks; financial ADRs slide Real rebounds after initial slump to five-week low Tariffs could hurt US consumers of coffee, orange juice LONDON/NEW YORK, July 10 (Reuters) - Brazil's stock market was dragged lower by its financial sector on Thursday while the real currency rebounded, a day after U.S. President Donald Trump's shock move to slap 50% tariffs on imports from Latin America's largest economy, citing political disagreements. Currency volatility gauges were at their highest since the back-end of April's tariff announcements after the real slumped as much as 2.8% on Wednesday in reaction to what Deutsche Bank described as an escalation of tensions. The currency ended down 2.3% Wednesday but bounced on Thursday and was up 0.5% on the day at 5.544 after earlier touching a five-week low of 5.6277 per greenback. Sign up here. U.S.-listed shares of Brazilian companies fell, with a widely followed Brazil ETF down 1.6%. Itau Unibanco fell 4.2%, Banco Santander Brasil was down 3.2% and Nu Holdings dropped 4.5%, while state oil firm Petrobras lost 0.4% and Embraer fell 4.7%. The main local stock market index (.BVSP) , opens new tab shed 0.5%. Brazil's 10-year local benchmark note yield had been steadily rising since hitting a 2025 low of 13.45% last week, and on Thursday jumped 13 basis points to 13.892%. "Although U.S. unilateral tariffs on Brazil are not entirely irrelevant, their macroeconomic impact would be modest," said local investment manager ARX Investimentos in a client note. " When combined with a coordinated economic policy response, Brazil is well positioned to neutralize adverse effects and preserve economic stability, even in a scenario of rising global trade protectionism." Brazil's bonds have been a strong performer in emerging markets this year, with international dollar-denominated bonds returning nearly 8% and local currency ones a whopping 20%. The local stock market hit a record high this month, yet is still among the cheapest in terms of dollars paid for expected earnings. MSCI's dollar-denominated Brazil stock index is up nearly 25%, too, helped by the year's double-digit surge in the real. Graham Stock at RBC BlueBay Asset Management said Trump's reasoning for the 50% tariff level had centred on his grievances around a court case against right-wing former Brazilian president Jair Bolsonaro, as well as legal moves against U.S. social media firms. "The economic implications are nevertheless fairly modest," Stock said, as just over 10% of Brazil's exports go to the U.S., and were worth only around 1% of the South American country's GDP. "The risk is that President Lula seeks to exploit his defiance of U.S. interference as a badge of honour in the run-up to the October 2026 elections, in which case de-escalation becomes less likely," he said. Brazil is a closed economy that has a trade deficit with the U.S., where consumers face sharp price rises on food staples like coffee and orange juice if the 50% tariffs stick, according to traders and experts. Around a third of the coffee consumed in the U.S., the world's largest drinker of the beverage, comes from Brazil and more than half of all the orange juice sold in the U.S. also comes from the South American agricultural powerhouse. Wednesday's decision by Trump followed a threat on Monday to impose an additional 10% tariff on the BRICS group of developing nations - of which Brazil is the 'B' - which he called "anti-American." https://www.reuters.com/world/americas/brazils-markets-face-testing-time-after-trump-tariff-blow-2025-07-10/
2025-07-10 20:32
Thousands of searchers comb Texas Hill Country for survivors Floods claim at least 120 victims, including dozens of children Officials face questions about early warnings KERRVILLE, Texas, July 10 (Reuters) - Six days after flash floods swept through parts of Texas Hill Country , opens new tab and killed at least 120, authorities say there are still more than 160 people unaccounted for, as thousands of searchers combed through piles of mud-covered debris for survivors on Thursday. But that figure may not reflect the true number of missing people, according to disaster response experts. Sign up here. The number of people reported missing in the aftermath of a natural disaster often turns out to be far greater than the eventual death toll. Worried members of the public, unable to reach a relative or friend, report the name to local authorities and to crowd-sourced online databases, and it gets added to a list that can grow distressingly long. In the first days after the devastating wildfire in the California mountain town of Paradise in 2018, the number of people missing briefly exceeded 1,200. It took two weeks for local officials to recover all the victims, and many months more for them to account for every person reported missing. In total, the fire killed 85 people, still the deadliest wildfire in the state's history. More than two weeks after a wildfire destroyed Lahaina on the Hawaiian island of Maui in 2023, the FBI said there were still more than 1,000 names on its list of the missing. The following summer, officials put the final death toll at 102. Josh Dozor, a former deputy assistant administrator at the Federal Emergency Management Agency and now an executive at the disaster response company International SOS, said the list of missing people could still change significantly. "There could be people listed as missing who don't even know they're on the list," he said. "There are power issues, someone might not have a cell phone charged. People are at shelters. It could take time to reassemble with loved ones." Kerr County, home to the vast majority of victims and missing people, is a sprawling, rural county with areas that have spotty cell phone service. More than 2,100 first responders were continuing a painstaking, mile-by-mile search across the country, hoping against long odds to find survivors six days after torrential rains sent a wall of water raging down the Guadalupe River in the predawn hours of July 4. Authorities have not found anyone alive since the day of the floods. At least 96 people, including 36 children, died in Kerr County, officials said at a briefing on Thursday morning. The death toll includes 27 campers and staff members from Camp Mystic, an all-girls Christian summer retreat on the banks of the river. Five girls and one counselor from the camp remain missing, officials said. "The length of time to find someone still alive after a summertime flash flood is a lot longer than, say, a winter storm or an earthquake, but the chances here are diminishing," Dozor said on Thursday. 'FLASH FLOOD ALLEY' Kerr County sits at the heart of what is known as Flash Flood Alley in central Texas, a region where some of the country's deadliest floods have occurred. More than a foot of rain fell in less than an hour early on July 4. Flood gauges showed the river's height rose from about a foot to 34 feet (10.4 meters) in a matter of hours, cascading over the river's banks and sweeping away trees and structures in its path. Hundreds of community members gathered at a worship service at Tivy High School in Kerrville on Wednesday to remember the victims. Students and adults prayed and sang, with some hugging and holding back their tears during the memorial. The school's soccer coach, Reece Zunker, and his wife, Paula, a former teacher there, were among the victims. Their two children were missing as of Sunday, according to the school district. "Zunker was a really tough guy," said art teacher Marti Garcia, who attended Wednesday's event. "I just had faith that he was going to pull it out." Authorities in Kerr County have faced questions about whether more could have been done in the early hours of July 4 to alert residents about the rising floodwaters and get some of them to higher ground. The state legislature will convene in a special session later this month to investigate the flooding and provide disaster-relief funding. Meanwhile, New Mexico Governor Michelle Lujan Grisham told reporters on Thursday that after talks with Homeland Security Secretary Kristi Noem, federal authorities had pledged $15 million in disaster relief for the mountain village of Ruidoso, where flash flooding on Tuesday killed three people, including two children, and damaged hundreds of homes. Some $12 million of the federal disaster funding is money previously pledged, but never paid, to build levees to protect the community from flash floods after wildfires last year, Lujan Grisham said. https://www.reuters.com/sustainability/climate-energy/thousands-first-responders-search-texas-survivors-against-long-odds-2025-07-10/
2025-07-10 20:24
Tesla needs to apply for driverless testing, deployment permits in California Company seeks to test robotaxis in Phoenix Robotaxi growth key for Tesla as EV sales slump July 10 (Reuters) - Tesla (TSLA.O) , opens new tab has yet to apply for regulatory permits it needs to operate driverless taxis in California, two state regulators said on Thursday, a day after CEO Elon Musk said the company would expand its robotaxis to the San Francisco Bay Area within two months. "To date, Tesla has not applied for either a driverless testing or deployment permit," a spokesperson for California's Department of Motor Vehicles said in an email to Reuters on Thursday. Sign up here. The California Public Utilities Commission (CPUC), which in March issued the first in a series of permits Tesla requires, said on Thursday the company had not yet applied for any new permits. All it has so far is a transportation charter-party carrier permit (TCP) typically associated with chauffeur-operated services, which allows Tesla to own and control a fleet of vehicles and transport employees on pre-arranged trips. The successful expansion of robotaxis will be crucial to Tesla's future as sales of its aging lineup of electric vehicles have slumped with rising competition and a backlash against Musk's embrace of far-right political views. Much of the company's trillion-dollar valuation hangs on Musk's bet on robotaxis and humanoid robots that are powered by artificial intelligence. Tesla reached out to Arizona late last month to start a certification process for an autonomous vehicle ride-sharing service, and a decision is expected by the end of this month, the state's transportation department said on Thursday. "They have expressed interest in operating within the Phoenix Metro area," Arizona's Department of Transportation said in an email to Reuters. Tesla has applied to test and operate both with and without a driver, it said. Tesla shares, down 23% this year, closed up nearly 5% on Thursday. Tesla did not respond to requests for comment. Tesla last month rolled out a small test of its robotaxi service in a limited area of Austin, Texas, with about a dozen vehicles, a select group of passengers and many restrictions, including a safety monitor in the front passenger seat. Even as social media videos showed multiple traffic problems and driving issues over the first few days, CEO Elon Musk said in response to a post on his social media platform X on Wednesday that Tesla would expand the service to a larger area in the city this weekend. When another user on X asked about an expansion to the Bay Area, Musk replied, "Waiting on regulatory approvals, but probably in a month or two." While Tesla faced almost no regulation in Texas, California tightly controls where and how firms can operate autonomous vehicles and requires testing data for permits. The California regulators Reuters contacted did not say how long it would take to review a permit application. https://www.reuters.com/business/autos-transportation/tesla-has-applied-arizona-robotaxi-service-certification-state-transport-2025-07-10/
