2025-11-26 17:08

Oil, gas industry had hoped for end to windfall tax before 2030 Labour government had pledged no new oil, gas licences LONDON, Nov 26 (Reuters) - Britain will allow some new oil and gas production on or near existing fields, the government said on Wednesday, easing its stance on new licences while dashing oil and gas producers' hopes for an early end to windfall taxes on their sector. From an output of around 4.4 million barrels of oil equivalent per day (boed) - similar to OPEC heavyweight Iraq - at the start of the new millennium and a position as a net exporter, Britain now produces around 1 million boed, with a decline to under 150,000 boed seen by 2050, according to UK oil and gas regulator North Sea Transition Authority (NSTA). Sign up here. U.S. President Donald Trump has been outspoken in his criticism of the UK's energy policy and efforts to reach net zero greenhouse gas emissions by 2050. Trump has called on the British government to drill more oil from the North Sea and criticised the country's windfarms. The Labour government had pledged during its 2024 election campaign that it would stop awarding new oil and gas licences to move toward net zero. Wednesday's move allows the government to hand out new oil and gas licences if they do not require new exploration and link back to existing fields and infrastructure, the Department for Energy Security and Net Zero said. WINDFALL TAX TO REMAIN TO 2030 Presenting its budget on Wednesday, the government announced no changes to one of the world's toughest tax regimes for oil and gas producers, which includes a windfall levy of 38% when prices exceed government-set thresholds, bringing the overall tax burden in such circumstances to 78%. Industry had hoped for an early end to the EPL, which is due to expire in March 2030. "The future of North Sea energy depends on investment, which won’t come without urgent reform of the windfall tax," said David Whitehouse, head of the Offshore Energies UK industry group. "If the levy stays in place beyond 2026, projects will stall and jobs will vanish, no matter how pragmatic licensing policy becomes." The government has vowed to use the revenue from oil and gas to raise funds for renewable energy projects. While oil prices have fallen below a government-set threshold for the so-called Energy Profits Levy (EPL), gas prices have been above it. The windfall tax is disabled once both fall below their thresholds, which are regularly updated. Harbour Energy, a North Sea-focused producer, said it was disappointed in the announcement. Environmental advocacy group Greenpeace UK applauded parts of the government's announcement but said it also did not go far enough in supporting North Sea energy workers to get new jobs in renewable energy. "The government has shown genuine global climate leadership, making the UK the world’s largest economy to call time on new fossil fuel exploration," said Areeba Hamid, Greenpeace UK’s co-executive director. The government said on Wednesday the EPL would be replaced in March 2030 with an Oil and Gas Price Mechanism at a rate of 35%, which would apply if oil and gas prices stay above certain thresholds. https://www.reuters.com/business/energy/uk-government-allows-some-new-oil-gas-fields-holds-firm-taxes-2025-11-26/

2025-11-26 17:01

LONDON, Nov 26 (Reuters) - Some brokers shifted their trade recommendations in favour of British government bonds and the pound on Wednesday, after the country's finance minister Rachel Reeves announced a big tax raising budget. Nomura said it had closed its recommendation to buy the euro against sterling as the budget "avoided the major tail risks that could have hurt" the pound. Sign up here. They said the budget's "overall fiscal 'headroom'” was increased, and so anticipate short sterling positions -- bets the currency will fall -- that had been popular going into the budget will be removed. That would help the pound rise against the euro. The common currency dropped to as low as 87.55 pence on Wednesday, its lowest in nearly a month. Meanwhile, Mizuho recommended positioning for the 10-year British government bond, or gilt, to outperform the equivalent 10-year U.S. Treasury. They said Reeves' budget "knocks off 0.3% from CPI in 2026; allowing for a more dovish BoE outlook." Dovish is central bank jargon for being more willing to pursue rate cuts, something that supports government bonds. British 10-year yields dropped 6 basis points on Wednesday, to 4.43%, while the 10-year Treasury yield was flat at 4.01%. , https://www.reuters.com/business/nomura-closes-trade-recommendation-buy-euros-sterling-2025-11-26/

2025-11-26 15:59

IRAdvocates alleges Apple uses conflict minerals from DRC and Rwanda Apple denies links to armed groups, has said suppliers told not to source from region DRC's tightened controls on minerals affect global tech supply chains DAKAR/LONDON, Nov 26 (Reuters) - A U.S.-based advocacy group has filed a lawsuit in Washington accusing Apple (AAPL.O) , opens new tab of using minerals linked to conflict and human rights abuses in the Democratic Republic of Congo and Rwanda despite the iPhone maker's denials. International Rights Advocates (IRAdvocates) previously filed a lawsuit against tech firms including Tesla (TSLA.O) , opens new tab, Apple and other companies over cobalt sourcing, but U.S. courts dismissed that case last year. Sign up here. French prosecutors also dropped Congo's case against Apple subsidiaries in December over conflict minerals, citing lack of evidence. A related criminal complaint in Belgium is still under investigation. Apple denied any wrongdoing in response to Congo's lawsuits, saying it had instructed its suppliers to halt the sourcing of material from Congo and neighbouring Rwanda. Apple said on Wednesday it “strongly disputes” the latest allegations that the company is benefiting from forced labor and unsafe mining practices in Africa, calling the claims “baseless.” An Apple spokesman said that 99% of the cobalt in Apple-designed batteries comes from recycled sources, and that this underscores the company’s push to cut reliance on mined material. He added that as conflict escalated in eastern Congo in 2024, the company instructed suppliers to stop sourcing material from Congo and Rwanda. Apple's Supplier Code of Conduct enforces “the industry’s strongest sourcing standards” and pledges continued transparency in public reporting, the spokesman added. IRAdvocates, a Washington-based nonprofit that tries to use litigation to curtail rights abuses, said in the complaint filed on Tuesday in the Superior Court of the District of Columbia that Apple’s supply chain still includes cobalt, tin, tantalum and tungsten linked to child and forced labour as well as armed groups in Congo and Rwanda. CONGO IS A MAJOR SOURCE OF COBALT, TIN, TUNGSTEN The lawsuit seeks a determination by the court that Apple’s conduct violates consumer protection law, an injunction to halt alleged deceptive marketing, and reimbursement of legal costs, but does not seek monetary damages or class certification. The lawsuit alleges that three Chinese smelters - Ningxia Orient, JiuJiang JinXin and Jiujiang Tanbre - processed columbite-tantalite metallic ore, or coltan, that U.N. and Global Witness investigators allege was smuggled through Rwanda after armed groups seized mines in eastern Congo. The lawsuit links the material to Apple’s supply chain. A University of Nottingham study published this year found forced and child labour at Congolese sites linked to Apple suppliers, the lawsuit said. Ningxia Orient, JiuJiang JinXin and Jiujiang Tanbre did not immediately respond to requests for comment. Congo, which supplies about 70% of the world’s cobalt and significant volumes of tin, tantalum and tungsten - used in phones, batteries and computers - did not immediately respond to a request for comment. Rwanda also did not immediately respond to a request for comment. 'NO REASONABLE BASIS FOR LINKS TO ARMED GROUPS' Apple has repeatedly denied sourcing minerals from conflict zones or using forced labour, citing audits and its supplier code of conduct. It said in December that there was “no reasonable basis” to conclude any smelters or refiners in its supply chain financed armed groups in Congo or neighbouring countries. Congolese authorities say armed groups in eastern Congo use mineral profits to fund the conflict that has killed thousands and displaced hundreds of thousands. They have tightened controls on minerals to choke off funding, squeezing global supplies. Apple says 76% of cobalt in its devices was recycled in 2024, but the IRAdvocates lawsuit alleges its accounting method allows mixing with ore from conflict zones. https://www.reuters.com/sustainability/land-use-biodiversity/us-group-sues-apple-over-congo-conflict-minerals-2025-11-26/

2025-11-26 13:39

SAO PAULO, Nov 26 (Reuters) - Brazil's annual inflation fell back within the central bank's target range in early November, official data showed on Wednesday, marking the first time since mid-January that the consumer price index met the target band. Prices in Latin America's largest economy rose 4.50% in the 12 months through mid-November, government statistics agency IBGE said, down from 4.94% a month earlier. Economists polled by Reuters had expected 4.49%. Sign up here. Brazil's central bank targets inflation at 3%, plus or minus 1.5 percentage points, and the recent disinflation trend has fueled bets that it will soon start an easing cycle. Board member Nilton David said on Tuesday that interest rate hikes were no longer in the bank's baseline scenario, noting that its next move should be a cut, though the timing remains unclear. Earlier this month, policymakers voted to keep rates unchanged at a nearly 20-year high of 15% for the third consecutive time, after halting in July an aggressive tightening cycle that added 450 basis points to the benchmark rate. They have vowed to bring inflation to 3%, repeating that the bank has taken a data-driven approach to monetary policy. "It's looking increasingly likely that Copom will kick off its easing cycle in January," Capital Economics' emerging markets economist Kimberley Sperrfechter said, referring to the monetary policy committee known as Copom. Pantheon Macroeconomics' chief Latin America economist, Andres Abadia, said he expects a first 50 basis-point cut in January. In the month to mid-November alone, IBGE said, prices in Brazil rose 0.2%, ticking up from 0.18% the previous month. The index had been expected to rise 0.18%, according to the median forecast in a Reuters poll. The monthly rise was driven by higher personal expenses, healthcare and transport prices, IBGE said. Closely-watched food and beverage prices edged up 0.09% after five months of declines, while household article costs fell, it added. https://www.reuters.com/world/americas/brazils-annual-inflation-back-within-target-range-first-time-since-january-2025-11-26/

2025-11-26 12:58

TORONTO, Nov 26 (Reuters) - Canada's main stock index is expected to rise to another all-time high next year as trade uncertainty potentially eases and resource shares benefit from booming spending on artificial intelligence, a Reuters poll found. The median prediction of 20 equity strategists and portfolio managers in the November 13-25 poll was for the S&P/TSX Composite Index (.GSPTSE) , opens new tab to rise nearly 5% to 32,125 by the end of 2026, from 30,604 on Monday. Sign up here. That would eclipse the record closing high of 30,827.58 on November 12 and the 30,000-mark expected in an August poll. By mid-2027, the index was forecast to reach 33,925, a gain of 10.9%. "We are heading into 2026 with a more optimistic view than we did 2025," said Philip Petursson, chief investment strategist at IG Wealth Management. "The environment has changed for the better. While tariffs still exist for now, there is less uncertainty around the levels of tariffs investors and companies should expect and plan for." LOWER INTEREST RATES Canada wants a deal to lower U.S. tariffs on steel, aluminum and autos but most other goods are exempt from duties under the U.S.-Mexico-Canada Agreement. "Central banks continue to shift from restrictive policy to accommodation, with continued rate cuts expected from both the Bank of Canada and the U.S. Federal Reserve," Petursson said. "This boost in liquidity is already supporting stock values, particularly in long-duration sectors like technology." The Bank of Canada has lowered its benchmark interest rate to a more than three-year low of 2.25%, while fiscal policy could be another tailwind. Canadian Prime Minister Mark Carney committed earlier this month to spend billions of dollars on measures to raise productivity and is aiming to speed up natural resource project construction. "Canadian energy and Canadian minerals will continue to be in high demand to fuel the needs of AI-related technologies for years to come," said Matt Skipp, President of SW8 Asset Management. The energy and materials sectors combined account for 32% of the TSX's market capitalization. Still, 11 of 15 analysts that answered a separate question said a correction was likely or very likely over the coming three months. The TSX has advanced 23.8% since the start of the year, putting it on track for its biggest annual increase since 2009. "This year's strong gains will be difficult to replicate as valuations have already re-rated higher, and the tailwind from surging gold prices may be largely exhausted," said Angelo Kourkafas, senior global investment strategist at Edward Jones. "This suggests slower returns and potentially higher volatility in 2026." (Other stories from the Q4 global Reuters stocks poll) https://www.reuters.com/business/canadas-tsx-hit-new-highs-2026-supported-by-trade-hopes-resource-push-2025-11-26/

2025-11-26 12:56

LONDON, Nov 26 (Reuters) - British finance minister Rachel Reeves is delivering her annual budget on Wednesday, unveiling billions of pounds in tax increases. Here are some of the main quotes from her speech to parliament: Sign up here. ON OFFICE FOR BUDGET RESPONSIBILITY RELEASING OUTLOOK EARLY "It is my understanding that the Office of Budget Responsibility's economic and financial outlook was released on their website before this statement. This is deeply disappointing and a serious error on their part. The Office of Budget Responsibility have already made a statement taking full responsibility for their breach." ON TODAY'S BUDGET "Today's budget builds on the choices we have made since last July: to cut NHS waiting lists, to cut the cost of living, and to cut the debt and borrowing. No doubt, we will face opposition again. But I have yet to see a credible, or a fairer alternative plan for working people." NO RETURN TO AUSTERITY "I said there would be no return to austerity, and I meant it. This Budget will maintain our investment in our economy and our National Health Service. I said I would cut the cost of living, and I meant it. This Budget will bring down inflation and provide immediate relief for families. I said that I would cut debt and borrowing, and I meant it." BEAT FORECASTS "We beat the forecasts this year and we will beat them again: Boosting trade, not blocking it. Increasing investment, not cutting it. Championing innovation, not stifling it. Backing working people, not making them poorer. Brick by brick we've been building growth in our economy. Building roads, building homes, Getting spades in the ground and cranes in the sky." PRIVATE INVESTMENT IS 'LIFEBLOOD' "Private investment is the lifeblood of economic growth but growth needs public investment too. When faced with challenges, previous chancellors have chosen to decrease, delay or cancel capital spending but low investment is the cause of our productivity problems, not the solution. "So my choice is not cuts, not stagnation but to maintain the additional £120 billion of investment I provided at the spending review." 'IRON-CLAD' FISCAL RULES "A growing economy needs strong foundations of economic stability, with borrowing and inflation down and investment up. That is good for business, and it is good for working people – so they have more money in their pockets. "Economic stability, safeguarded by iron-clad fiscal rules, is our best defence against rising prices and the best way to improve living standards." https://www.reuters.com/business/finance/what-did-uks-reeves-say-her-budget-speech-2025-11-26/