2025-07-01 18:42

CAIRO, July 1 (Reuters) - Iranian Foreign Minister Abbas Araqchi warned in a phone call with EU foreign policy chief Kaja Kallas against what he called the "destructive approach" of several European countries, he said in a statement on Telegram on Tuesday. Araqchi also criticised the stance of some European countries over the recent air war between Israel and Iran, saying it was supportive of Israel and the United States. He did not specify which countries he had in mind. Sign up here. Kallas said after the call that "negotiations on ending Iran's nuclear programme should restart as soon as possible". In a post on social media platform X, the EU's top diplomat said cooperation with the International Atomic Energy Agency "must resume" and that the bloc is ready to facilitate. "Any threats to pull out of the non-proliferation treaty don’t help to lower tensions," she added. https://www.reuters.com/world/middle-east/iran-warns-against-destructive-approach-european-countries-call-with-eu-foreign-2025-07-01/

2025-07-01 18:01

NEW YORK, July 1 (Reuters) - Federal Reserve Chair Jerome Powell said Tuesday the U.S. central bank has no plans to change how it offers dollar liquidity to other official entities. Speaking on the matter of the Fed's dollar swap lines system, Powell told a gathering held by the European Central Bank that "we still have the same authorities, and we're still prepared to use them in situations where it's within our legal authorities and where we think it makes sense." Sign up here. He added the dollar swap lines have made "a big contribution" to global financial stability. Fed dollar swap lines offer collateralized loans to eligible central banks to ensure dollar liquidity is not an issue for the global financial system. The current system, initiated during the global financial crisis, has been heavily used in times of crisis. Fed swap lines now in place can lend dollar and foreign currencies, although it is the dollar-related facility that has been where the action has been. The swap line usage level can often be viewed as a proxy for international financial stress. There has been some concern that the Fed's currency swap lines could be shuttered amid the Trump administration's retreat from multilateral international coordination and its broader skepticism over Fed actions, although so far, no action by elected officials has happened. The system may also face longer run challenges as the trade policy pursued by the president may threaten the status of the dollar as a global reserve currency, which could make American money less needed by other nations, in turn reducing the need to borrow dollars in times of stress. Speaking at the same central bank event, Bank of Korea Governor Rhee Chang-yong noted that while the dollar swap lines had helped in times of trouble there were times when there could be local dollar liquidity issues the U.S. central bank could not address. "Our understanding is that Fed cannot extend the swap lines in that case, and we have to self defense ourselves. That is why I think they're having an adequate, sufficient level of reserves is very important." https://www.reuters.com/business/feds-powell-says-dollar-swap-lines-remain-important-tool-2025-07-01/

2025-07-01 17:38

NEW YORK, July 1 (Reuters) - UBS (UBSG.S) , opens new tab hired Taylor Henricks as its head of mergers and acquisitions in the Americas as it seeks to expand investment banking in the U.S., according to a memo seen by Reuters. Henricks will also serve as UBS' head of technology M&A after holding a similar role at Morgan Stanley. The executive will start at the Swiss bank in October and be based in Menlo Park, California. He will report to Jeff Hinton, the global co-head of corporate and sponsor advisory at UBS Investment Bank. Sign up here. Since taking over collapsed rival Credit Suisse in 2023, UBS has made a push to grow in U.S. investment banking, a lucrative market in which American lenders are the biggest players. "As we continue to make long-term investments in our Americas franchise to expand our footprint, enhance our product offering, and pivot towards high growth sectors, we are confident that Taylor’s expertise will allow us to capture even greater market share in this strategically important region," Hinton wrote in the memo. UBS has hired senior U.S. bankers in leveraged finance, healthcare and technology, media and telecommunications (TMT) in recent months, while also promoting new leaders in its groups focused on financial institutions, corporate sponsors and advisory. Below is a list of senior UBS hires since March, who are all based in New York unless otherwise specified, according to a company spokesperson: https://www.reuters.com/business/finance/ubs-hires-taylor-henricks-head-ma-americas-morgan-stanley-2025-07-01/

2025-07-01 17:05

Remittances to Mexico dropped 4.6% in May on the year Decline comes as US Congress mulls a 1% tax on cash remittances Other Central American states have seen remittances rise MEXICO CITY, July 1 (Reuters) - Remittances sent to Mexico dropped 4.6% in May compared to a year earlier, according to central bank data published on Tuesday, as the United States prepares to implement a tax on the money sent by workers to their families back home. The figure for May hit some $5.36 billion, the accumulation of some 13.9 million transactions averaging $385 each. While the size of each transaction edged up compared to the same month last year, the number of transactions dropped some 5.7%. Sign up here. Mexico, the world's second-largest recipient of remittances after India, receives remittances chiefly from workers in the U.S., where the Senate recently softened plans to tax these transfers. The proposed budget making its way through U.S. Congress now calls for a 1% tax on remittances when they are made in cash. Earlier drafts of the legislation called for taxing all remittances 3.5%, a plan Mexican officials said violated a tax treaty between the two countries because, they said, it amounted to double taxation, as the remittances are already subject to local taxes in the U.S. While Mexican officials seemed relieved the bill had been amended, President Claudia Sheinbaum said that if signed into law, her government would announce a program to reimburse the 1% lost to the U.S. tax. "Look at the love our migrant brothers and sisters have for their families and for Mexico," Sheinbaum said at her morning press conference on Tuesday. "No matter what the circumstances, they always support their families." Manuel Orozco, director of the Migration, Remittances, and Development Program at the Inter-American Dialogue, said approximately 40% of remittances to Mexico are sent in cash, though the number of electronic transfers is likely to increase if the bill passes. In April, Mexico central bank logged the steepest drop in remittances in nearly 13 years. The May remittances data marked the second consecutive year-on-year decline and the third so far this year, according to central bank data. The decline in remittances sent to Mexico is an outlier in the region. El Salvador, Honduras and Guatemala have all registered sharp increases in remittances so far this year compared to the same period in 2024, according to official data. Orozco said declining Mexican remittances reflect lower overall Mexican migration to the U.S. in recent years, plus Mexican immigrants there have maximized their capacity to send money. Jesus Cervantes, director of economic statistics at the Center for Latin American Monetary Studies, said there are a higher percentage of undocumented Central Americans in the U.S. than Mexicans. As deportations ramp up, Central American migrants may be more motivated to send money now instead of waiting, he added. "That is a qualitative factor" contributing to the different trends in remittances, he said. https://www.reuters.com/world/americas/mexico-remittances-dip-5-may-us-mulls-tax-2025-07-01/

2025-07-01 16:41

LONDON, July 1 (Reuters) - Britain's official budget watchdog said on Tuesday that it had been too optimistic about the country's economic growth outlook, raising the prospect of a downgrade of its forecasts which would be a blow to finance minister Rachel Reeves. The Office for Budget Responsibility said in an annual assessment of its forecasting that its projections had overestimated annual economic growth by an average of 0.7 percentage points when looking five years ahead. Sign up here. The OBR said its over-optimism about the five-year outlook since the office was created in 2010 was mirrored in projections by a range of other forecasters. But the report is likely to add to expectations that the official forecasts that underpin the government's tax and spending plans will be cut later this year, further complicating the task facing Reeves to stick to her budget rules. Allan Monks, an economist with JP Morgan, said the last time the OBR made a large downgrade to its growth forecasts in 2017 it said that the change had been foreshadowed in its forecast evaluation report. "The key question now is magnitude," Monks said. If the OBR shaves 0.1-0.2 percentage points from its forecast for average annual potential economic growth, it could cost the public finances between 9 and 18 billion pounds a year, he said. The OBR said in March that Reeves had only a small buffer of just under 10 billion pounds ($13.7 billion) for meeting her fiscal rules as she aims to balance day to day public spending with tax revenues by the end of the decade. Economists have said she may have to announce further tax increases to stay on track to hit those targets after recent decisions by the government to water down its plans for savings in welfare spending. ($1 = 0.7288 pounds) https://www.reuters.com/world/uk/uk-budget-forecasters-say-they-have-been-too-upbeat-posing-risk-reeves-2025-07-01/

2025-07-01 16:26

PARIS, July 1 (Reuters) - New car registrations in France slid 6.7% in June from a year earlier to 169,504 vehicles, data from French car body PFA showed on Tuesday. Tesla (TSLA.O) , opens new tab sales fell 10.04% to 3,646 vehicles last month. Since the beginning of the year, Tesla's sales have slumped by 39.59% while the French market overall has shrunk by 7.94% over the same period. Sign up here. https://www.reuters.com/business/autos-transportation/france-car-registrations-down-67-june-tesla-sales-drop-10-2025-07-01/