2025-06-26 11:23
BRASILIA, June 26 (Reuters) - Brazil's central bank projected on Thursday that inflation will hover near the official goal by the end of 2027, as it trimmed its estimates for this year and next in its quarterly monetary policy report. After projecting earlier this month annual inflation at 3.6% for 2026, the relevant horizon for current policy decisions, policymakers unveiled a 3.2% forecast for the fourth quarter of 2027, the final period covered by the report. Sign up here. The bank targets inflation at 3%, with a tolerance band of 1.5 percentage points in either direction. Last week, it raised interest rates by 25 basis points to a near two-decade high of 15%, signaling a "very prolonged pause" in its action to curb consumer prices. Despite an aggressive tightening cycle launched in September that has lifted the benchmark Selic rate by 450 basis points, Latin America's largest economy remains resilient. In the report, the central bank raised its 2025 GDP growth forecast to 2.1% from 1.9% in March, citing stronger than expected labor market conditions early in the second quarter and some boost to consumption and activity from recent changes to payroll-deductible loans for private sector workers. Still, policymakers stressed they maintained expectations for a slowdown in economic activity over the current quarter and the second half of the year. "This expected moderation stems from the continuation of a restrictive monetary policy, limited slack in production factors, prospects of slower global growth, and a decline in the agricultural boost seen in the first quarter," they said. Compared with the March report, the central bank lowered its 2025 inflation forecast by 0.2 percentage point to 4.9%, while the projection for 2026 declined by 0.1 percentage point. "Among the factors pushing inflation higher are stronger-than-expected economic activity, while downward pressures include currency appreciation and falling oil prices," policymakers wrote. https://www.reuters.com/world/americas/brazil-central-bank-lifts-2025-gdp-forecast-sees-inflation-nearing-target-2027-2025-06-26/
2025-06-26 11:18
June 26 (Reuters) - Palantir Technologies (PLTR.O) , opens new tab on Thursday said it was teaming up with a nuclear deployment company to develop an artificial intelligence-driven software system built for the construction of nuclear reactors. Nuclear energy has garnered renewed interest from investors and companies, as it is considered to be a cleaner source of fuel and more reliable than wind or solar energy. Sign up here. Palantir and Nuclear Company will jointly create the nuclear operating system (NOS), which will simplify construction, allowing the firm to build plants faster and at lower cost. The deal follows U.S. President Donald Trump's executive orders that aimed to boost U.S. nuclear energy production amid a boom in demand from data centers and AI. The orders, signed in May, direct the nation's independent nuclear regulatory commission to cut down on regulations and fast-track new licenses for reactors and power plants. Kentucky-based Nuclear Company will pay the data analytics company around $100 million over five years to develop the platform, according to a Palantir spokesperson. The industry is also expected to benefit from Trump's sweeping tax and spending bill, which rolled back many green-energy subsidies but preserved tax credits for nuclear energy. U.S. power consumption is estimated to reach record highs in 2025 and 2026 after stagnating for nearly two decades, as power-hungry data centers dedicated to AI and crypto miners plug into the grid. https://www.reuters.com/business/energy/palantir-partners-develop-ai-software-nuclear-construction-2025-06-26/
2025-06-26 11:17
June 26(Reuters) - Sterling rose to its highest in nearly four years against the dollar on Thursday, as worries around the credibility of the U.S. Federal Reserve dragged the greenback lower on its fourth consecutive day of losses. The pound was up 0.56% against the dollar at $1.374, after earlier in the session surpassing January 2022 highs to trade at levels not seen since October 2021. Sign up here. "(Sterling) price action is baffling," said Nick Rees, head of macro research at Monex Europe, as it "completely ignores the difficulties facing the UK government". Rees pointed to a brewing rebellion among lawmakers of Prime Minister Keir Starmer's Labour party which he said "is going to torpedo" proposed reforms to the welfare system. Due to ballooning welfare spending, which was on course to top 100 billion pounds by 2030, Labour said in March it planned to cut more than 5 billion pounds from its welfare budget by 2029/30 as it sought to avoid a rise in taxes or borrowing, "neither of which are outcomes that markets are going to like," Rees said. He pointed to late 2022, when British markets were racked by then-Prime Minister Liz Truss's failed "mini-budget", and another drop in sterling and rise in gilts, albeit to a lesser extent, when British finance minister Rachel Reeves announced a tax-and-spend budget in October that investors worried would reignite inflation and weigh on growth. While the euro is set to gain more than 1% over the pound this month, sterling regained some ground in recent days. It was broadly steady against the euro, which was down 0.1% at 85.27 pence. This week, a survey showed Britain's labour market was showing further signs of slowdown, which pointed to below-inflation pay growth and a drop in job vacancies, especially for graduate-level jobs. Bank of England Governor Andrew Bailey on Tuesday said there were now signs that Britain's labour market was softening and he repeated his view that interest rates were likely to continue falling. Markets see a 64% chance of a rate cut from the BoE in August. Sterling gained more than 2% against the dollar so far this week. "I think once things calm down and markets have a little bit more time to focus on the UK fiscal situation, I think big, big downside risk is building for the pound that could start to play out," Rees said. https://www.reuters.com/world/uk/sterling-gains-against-weaker-dollar-amid-fed-credibility-worries-2025-06-26/
2025-06-26 11:17
Slovakia, Hungary oppose new sanctions on Russia Slovakia won't vote on 18th sanctions package, Fico says European diplomats expect issue to be resolved at EU summit June 26 (Reuters) - Slovakia will not support a new European Union sanctions package on Russia and will demand a delay in the vote until Slovak concerns over gas supplies after 2027 are resolved, Prime Minister Robert Fico said on Thursday. The European Commission on June 10 proposed a new round of sanctions against Russia for its invasion of Ukraine more than three years ago, targeting Moscow's energy revenues, banks and military industry. Sign up here. Slovakia and Hungary have opposed the sanctions due to their disagreement with Commission proposals to end Russian energy imports by the end of 2027, which would force the two countries to look for alternatives. European diplomats have said they expect the issue to be resolved at the summit. Fico reiterated his position that the new sanctions could lead to supply shortages and price increases as well as up to 20 billion euros ($23.4 billion) in losses from arbitration for breaching a long-term contract with Russian supplier Gazprom (GAZP.MM) , opens new tab. Fico said he would back the summit's conclusions, but he would still not agree to the sanctions now. "Tomorrow, Slovakia will not vote on the 18th sanctions package," he told a parliamentary committee on Thursday before he left for the summit. "We consider it to be one package with (the end of imports plan) and until fundamental issues are resolved, we cannot adopt further sanctions." Fico met European Commission President Ursula von der Leyen on Thursday but it was not known if that changed his position. Polish European Affairs Minister Adam Szlapka said at the summit he hoped Slovakia and Hungary could be brought on board as they had been in the past. "As in the previous sanction packages, I am optimistic here, we are working on it," he said. "I hope that it will be possible to close it by the end of the (EU) Polish presidency, and as we know, there are four days left." Sanctions proposals require unanimity in the bloc for adoption. Hungary has frequently threatened to withhold its approval during discussions on aid for Ukraine as well as on sanctions renewals, which take place every six months. ($1 = 0.8536 euros) https://www.reuters.com/world/slovakia-demands-delay-vote-russian-sanctions-over-energy-concerns-2025-06-26/
2025-06-26 11:11
SYDNEY, June 26 (Reuters) - Australia is suing a Chinese-linked company and a former associate over a breach of foreign investment laws linked with rare earths miner Northern Minerals (NTU.AX) , opens new tab, the national treasurer said on Thursday, adding it was the first case of its kind. Indian Ocean International Shipping and Service Company was one of five foreign investors with ties to China subject to an order by Treasurer Jim Chalmers to divest shares on national interest grounds in June last year. Sign up here. Chalmers said in a statement he had lodged a legal action in the Federal Court and was seeking penalties, declarations and costs. “Foreign investors in Australia are required to follow Australian law,” Chalmers said. “We are doing what is necessary to protect the national interest and the integrity of our foreign investment framework.” The statement, which said the case was the first to be brought by a Treasurer before the Federal Court for an alleged breach of foreign investment laws, did not give details of the current stake holdings. It named Indian Ocean, but did not name the former associate. Indian Ocean International Shipping and Service Company could not immediately be contacted for comment. Australia has sought to build a rare earths supply chain to decrease China’s dominance over the elements used in products from smartphones to wind turbines and missiles and radar systems. Northern Minerals, a supplier of rare earths to a refinery being built by Iluka Resources (ILU.AX) , opens new tab in Western Australia, became a flashpoint for the contest after Australia blocked Singapore-based Yuxiao Fund from doubling its stake in the company to almost 20% in 2023. Yuxiao, controlled by Chinese businessman Wu Tao, along with four other entities, including Black Stone Resources of the British Virgin Islands and Indian Ocean International Shipping and Service Company based in the United Arab Emirates, were ordered in 2024 to sell shares worth 10.37% of Northern Minerals’ share capital within three months to unconnected associates. https://www.reuters.com/world/china/australia-sues-china-linked-rare-earths-investors-2025-06-26/
2025-06-26 11:04
SEOUL, June 26 (Reuters) - South Korea's Nuclear Safety and Security Commission approved on Thursday the first dismantlement of a nuclear power plant in the country, the Kori-1, which was permanently shut down in 2017 after 39 years of operation, it said in a statement. The panel authorised a plan by the nuclear operator Korea Hydro and Nuclear Power (KHNP) to take down the plant at a cost of 1.1 trillion won ($810 million) over 12 years that would include the handling of approximately 170,000 tonnes of nuclear waste, it said. Sign up here. The decision marks the first such operation by the country, the world's fifth-largest producer of nuclear energy according to the International Atomic Energy Agency and a major global builder of atomic power plants, to decommission a nuclear plant. The nuclear safety commission said it concluded the plan submitted by KHNP met the technical requirements under the country's nuclear safety management laws. Experts have said the dismantlement operation could help South Korea enter the global nuclear decommissioning market, which is now dominated by the United States with countries such as Japan and Germany having also entered the race. South Korea generated 31.7% of its electric power from nuclear power stations in 2024, according to government data. It now operates 26 power plants and the Kori-1 power plant was the first to be commissioned for commercial operation in 1978. ($1 = 1,357.4100 won) https://www.reuters.com/world/asia-pacific/south-korea-nuclear-watchdog-approves-first-dismantlement-nuclear-power-plant-2025-06-26/
