2025-06-25 11:31

Commission set to issue guidance on EU's stablecoin rules Interchangeability of EU and non-EU tokens to be allowed ECB has warned of stablecoin risks MILAN, June 25 (Reuters) - The European Commission is set to clarify that the European Union's crypto rules allow stablecoins issued by a company with an EU licence to be treated as interchangeable with those issued by a company's non-EU entities, a source close to the matter said on Wednesday. The Commission will provide the clarification in the near future, the person said, without giving further details. Sign up here. Stablecoins are a type of crypto asset designed to maintain a stable value by being pegged to a traditional currency, like the U.S. dollar. The guidance is the latest in a series of attempts by regulators to grapple with the risks around stablecoins. ECB President Christine Lagarde on Monday told European policymakers stablecoins posed risks for monetary policy and financial stability, urging European lawmakers to introduce legislation backing the launch of a digital euro. The EU in 2023 adopted an extensive set of rules for crypto assets, known as MiCA, under which issuers of stablecoins must receive supervisory clearance to create their tokens in the EU - referred to as e-money tokens (EMTs). EMT-issuers must hold most of the reserves which back those tokens in an EU-based bank, to ensure that they can meet redemption requests from customers who wish to swap the crypto back into fiat currency. In April 2024, France's banking supervisor posed a query which the Commission is now set to answer seeking clarity on whether identical tokens issued by different arms of the same company - one with an EU-licence and one outside the EU - would be considered interchangeable, or "fungible". The European Central Bank has previously warned of the risk of this approach, saying the reserves held in the EU could be used to meet redemption requests by non-EU token holders. This could "risk undermining EU strategic autonomy/sovereignty", it said in a document in April. A European Commission spokesperson said that a run on a "well-governed and fully collateralised stablecoin" was very unlikely. Non-EU holders of a stablecoin which is jointly issued in the EU and outside the EU would make their redemption requests to the non-EU entity, the spokesperson added. "Moreover, issuers of EMTs that also issue fungible tokens abroad can be required to have a re-balancing mechanism to ensure that reserves in the EU match token holdings in the EU," the spokesperson added. The Financial Times first reported news of the guidance from the EU Commission. https://www.reuters.com/sustainability/boards-policy-regulation/brussels-set-disregard-ecb-warnings-over-stablecoin-rules-ft-reports-2025-06-25/

2025-06-25 11:28

BEIJING, June 25 (Reuters) - A tropical depression may hit southern China as early as Thursday, meteorologists cautioned, bringing rain and gales to a flood-hit region still recovering from the impact of Typhoon Wutip two weeks ago. The tropical depression could make landfall somewhere between the island province of Hainan and Guangdong on the mainland on Thursday morning, China's National Meteorological Centre said in an online bulletin on Wednesday. Sign up here. The storm will again test the flood defences of densely populated Guangdong as well as Guangxi and Hunan further inland. Hundreds of thousands of people were evacuated when Wutip tore through the region from June 13 to 15, dumping record rains and damaging roads and cropland. Five people died. China has battled with summer floods for millennia, but some scientists say climate change is resulting in heavier and more frequent rain. Massive flooding could set off unforeseen "black swan" events with dire consequences such as dam collapses, Chinese officials say. Heavy precipitation caused by typhoons will also aggravate seasonal rainfall from June to July, causing bigger-than-expected floods, Chinese meteorologists say. On Wednesday, unusually heavy rains struck Rongjiang in southwestern Guizhou province, half-submerging the city of 300,000 people as fast-rising flood-waters swept away cars, roared into underground garages and malls, and damaged vital infrastructure including its power grid. Affected by the rainfall in Guizhou, rivers in Guangxi downstream remained swollen on Wednesday, state media reported, with one waterway more than 9 metres (30 feet) above levels that are considered safe. China's economic planning agency in Beijing on Wednesday said it had urgently allocated 100 million yuan ($14 million) to assist disaster relief work in Guizhou, and an additional 100 million yuan to Guangdong and Hunan. ($1 = 7.1715 Chinese yuan renminbi) https://www.reuters.com/sustainability/climate-energy/china-reeling-floods-braces-second-tropical-cyclone-two-weeks-2025-06-25/

2025-06-25 11:20

NAIROBI, June 25 (Reuters) - Burundi on Wednesday commissioned the first phase of a $320 million hydropower project financed by lenders including the European Investment Bank, the African Development Bank and the World Bank, according to a statement. Only 6% of the 13 million population have access to power in the small Central African nation, whose generation capacity is roughly 40 megawatts, according to the African Development Bank. Sign up here. The new project, with a combined generation capacity of 49.5 megawatts, involves two plants - Jiji and Mulembwe - developed on two small rivers in southern Burundi. Jiji was commissioned on Wednesday, while Mulembwe will be brought online in a few months, according to a joint statement issued by the lenders, who also include the European Union. "This new capacity will not only improve access to electricity for thousands of people, but will also boost productivity in key sectors such as health, education, agribusiness and ICT," said the statement. Edward Claessen, the European Investment Bank's head of regional hub for East Africa, was quoted as saying the project was part of the EU's strategy to develop clean and sustainable energy infrastructure in Africa to boost decarbonisation efforts. https://www.reuters.com/sustainability/climate-energy/burundi-commissions-first-phase-320-mln-power-project-2025-06-25/

2025-06-25 11:03

MUMBAI, June 25 (Reuters) - The Reserve Bank of India (RBI) sold a net of $1.66 billion in the spot foreign exchange market in April, data released on Wednesday as part of the central bank's monthly bulletin showed. The RBI said it purchased $10.11 billion and sold $11.77 billion during the month. In March, the central bank had bought a net of $14.36 billion in the spot market. Sign up here. The Indian rupee braved multiple headwinds in April including U.S. trade policy flip-flops and an India-Pakistan conflict to come out stronger on the back of inflows into equities and as exporters ramped up dollar sales. The currency gained 1.2% in April, its second consecutive monthly rise, helping extend a reversal in its fortunes after hitting an all-time low of 87.95 in February. The RBI's net outstanding forward sale stood at $72.6 billion as of end-April, compared with a net sale of $84.35 billion at the end of the previous month, the data showed. The central bank intervenes in the spot and forwards market to curb exchange rate volatility. The rupee closed at 86.0775 per U.S. dollar on Wednesday. https://www.reuters.com/world/india/india-cenbank-sold-net-166-billion-spot-forex-market-april-bulletin-shows-2025-06-25/

2025-06-25 10:52

BP shares have underperformed peers for years Shell CEO has dismissed rumours of possible bid for BP BP's debt structure complicates picture Still paying out on 2010 Macondo oil spill LONDON, June 25 (Reuters) - BP (BP.L) , opens new tab has been the subject of takeover talks for several years due to its shares' relative underperformance, but analysis of its disclosures shows the British energy firm may not be as cheap as its market valuation would indicate. BP says it has net debt of $27 billion - already more than some rivals - but its disclosures show that it has around $38 billion of additional liabilities. Sign up here. "We see BP's all-in debt profile as something of a poisoned chalice for an acquirer," RBC analysts said. The $80 billion company has underperformed its competitors for years, which investors and analysts say has made the company a potential takeover target. Companies seen as potential suitors have included British rival Shell, along with U.S. oil majors such as Exxon Mobil or Chevron. Abu Dhabi National Oil Company considered a takeover in 2024, but did not proceed, Reuters reported. BP declined to comment. SHARES UNDERPERFORM BP's stock has underperformed its peers since 2020 when its pivot to renewable energy left it lagging behind when global and gas prices surged. Despite new CEO Murray Auchincloss reversing course, the shares have continued to underperform in 2025. COMPLEX LIABILITIES Beyond its declared net debt of $27 billion, BP carries three major additional liabilities. The largest of these are some $17 billion in hybrid bonds which blend debt and equity traits. While they pay fixed income like bonds, issuers can skip payments, making them riskier and costlier. These often do not count as debt, helping preserve credit ratings. TotalEnergies holds about $12 billion in hybrids, while Shell has none. BP also has $12.5 billion in lease obligations for assets such as vessels and rigs. Unlike Shell, which includes $28.5 billion of such liabilities in its $41.5 billion net debt, BP excludes them. Finally, BP is still paying for the 2010 Macondo disaster, when a blowout at an offshore platform in the Gulf of Mexico caused one of the world's worst oil spills. BP still owes $8 billion from the spill, part of a $70 billion total cost, company disclosures show. This remaining liability is also excluded from its net debt. RATIOS Shell CEO Wael Sawan has long argued that buying back Shell’s own stock offers better value than investing in BP. Analysts point to BP’s higher all-in debt load as a key reason. While BP's share price may appear cheap, financial measures such as EV/DACF (enterprise value/debt-adjusted cash flow), which compares a firm's value to its cash generation, tell a different story. "BP's stock may look inexpensive from a share price point of view, but that masks the additional liabilities needing to be absorbed, with the current shares trading largely in line with Shell on EV/DACF," said UBS analyst Joshua Stone. BP’s valuation could improve if it completes its $20 billion asset disposal plan by 2026. But for now, it remains more leveraged than Shell, which limits its free cash flow. "Overall, we still believe it likely that no deal will be agreed. BP carries significantly more debt than Shell," said Henry Tarr, co-head of energy and environment research at Berenberg. "This leverage eats into its free cash flow generation." ($1 = 0.7357 pounds) https://www.reuters.com/business/energy/devils-details-why-bps-debt-may-deter-buyer-2025-06-25/

2025-06-25 10:50

KARACHI, June 25 (Reuters) - Pakistan and the U.S. have resolved to conclude trade talks next week, the South Asian nation said on Wednesday after a meeting between its Finance Minister Muhammad Aurangzeb and U.S. Commerce Secretary Howard Lutnick. The negotiations, focused on reciprocal tariffs, are part of a broader push to reset economic ties at a time of shifting geopolitical alignments and Pakistan’s efforts to avoid steep U.S. duties on exports. Sign up here. “Both sides showed satisfaction on the ongoing negotiations and resolved to conclude the trade negotiations next week,” Pakistan's finance ministry said in a statement, adding that a longer-term strategic and investment partnership is also under discussion. Pakistan faces a 29% tariff on exports to the U.S. under President Donald Trump’s measures to target countries with large trade surpluses with the U.S. Pakistan’s surplus was around $3 billion in 2024. To offset the imbalance and ease tariff pressures, Islamabad has offered to import more U.S. goods, including crude oil, and to open up investment opportunities through concessions for U.S. firms in Pakistan's mining sector. Earlier this week, the two countries co-hosted a webinar promoting investment in Pakistan’s mineral sector, including the $7 billion Reko Diq copper-gold project. Senior officials from both governments and U.S. investors discussed public-private partnerships and regulatory reforms. The U.S. Export-Import Bank is reviewing financing proposals worth $500 million to $1 billion in Reko Diq. Trump, who hosted Pakistan's army chief Field Marshal Asim Munir at the White House last week, has earlier said trade helped avert a deeper conflict between Pakistan and India. https://www.reuters.com/world/asia-pacific/pakistan-says-trade-talks-with-us-conclude-next-week-2025-06-25/