2025-06-18 20:47
CHISINAU, June 18 (Reuters) - Moldova's pro-Russian separatist Transdniestria region faces a dire economic crisis triggered by this year's halting of gas supplies from Russia and a collapse in industrial and farm production, a senior minister in the enclave said on Wednesday. WHY IT'S IMPORTANT Moldova's pro-European President Maia Sandu has warned that Russia could use instability in Transdniestria to sow chaos and influence a September election to secure a parliament and government more favourable to Moscow. Sign up here. Sandu is seeking European Union membership by 2030. KEY QUOTES "Forecasts for Transdniestria's economy are not encouraging, based on uncertainty over gas supplies, a lack of a contract on power exports from the thermal plant and the fact that major industrial plants are idle," Economic Development Minister Sergei Obolonik told a government session on Wednesday. "There remains a risk that Moldova could introduce new sanctions and restrictive regulations," he said, according to local media. CONTEXT Transdniestria broke from Soviet Moldova in 1990. Other than a brief 1992 conflict, it has lived alongside the rest of the now-independent state with little upheaval for more than 30 years thanks largely to assistance provided by Moscow. But Russia halted supplies of virtually free gas in January after Ukraine shut a transit pipeline. Separatist authorities secured alternative gas through a Hungarian supplier with Russian funding, but that supply has proved insufficient to keep the economy afloat. BY THE NUMBERS Obolonik forecast a 12% drop in gross domestic product in the second half of the year from a year ago, a 30% plunge in industrial output, a 6% slide in agricultural production, a 20% slide in foreign trade and inflation of 16%. Improvement next year, he said, depended on finding reliable gas sources and on Moldova introducing no punitive measures. "We can expect no real growth in the economy," Obolonik said. "The best scenario is for indicators to remain at this year's levels." https://www.reuters.com/business/energy/separatist-moldovan-region-facing-crisis-without-russian-gas-minister-says-2025-06-18/
2025-06-18 20:37
June 18 (Reuters) - The total market capitalization of stablecoins surged to a record high on Wednesday, data showed, as the U.S. Senate passed a bill to regulate the sector, a major step towards legitimising a once-niche but now fast-growing corner of the crypto market. According to CoinDesk data, the market capitalization of stablecoins hit an all-time high of $251.7 billion, up 22% so far this year. Sign up here. Stablecoins are a type of cryptocurrency designed to maintain a constant value, usually via a 1:1 peg with the U.S. dollar. They are commonly used by crypto traders to move funds between tokens. Their use has soared in recent years, and analysts expect the market to grow further once the U.S. legislation has passed. Proponents say stablecoins could be used to send payments instantly, while others worry they will lead to closer ties between the crypto world and traditional financial markets. If the U.S. bill is eventually signed into law, stablecoins would be required to be backed by liquid assets such as U.S. dollars and short-term Treasury bills, and for issuers to publicly disclose the composition of their reserves on a monthly basis. https://www.reuters.com/business/finance/stablecoins-market-cap-surges-record-high-us-senate-passes-bill-2025-06-18/
2025-06-18 20:10
Brazil aims to resume chicken exports with trade partners Reclaiming disease-free status requires WOAH confirmation 17,000 birds culled in first outbreak in Montenegro Brazil accounts for 39% of global chicken trade SAO PAULO, June 18 (Reuters) - The world's largest poultry exporter has declared itself free of the bird flu virus on commercial flocks after observing a 28-day period without any new commercial farm outbreaks, the Brazilian ministry of agriculture said on Wednesday. The countdown for reclaiming the country's disease-free status began on May 22 following the complete disinfection of the farm where Brazil's only commercial outbreak was detected last month, in the state of Rio Grande do Sul. Sign up here. Under existing trade protocols, China and other importers banned chicken imports from Brazil, which accounts for 39% of global chicken trade, pending measures to control the disease and prevent entrance on other commercial chicken facilities. Now, Brazil aims at resuming chicken exports with its trade partners, but that will require talks with each one of them, Agriculture Minister Carlos Favaro said in a statement. Earlier, a Rio Grande do Sul state official had said Brazil had taken all the steps under health protocols to once again declare itself a free of highly pathogenic avian influenza (HPAI) virus. Reclaiming Brazil's status as free HPAI is not automatic and must be confirmed by the World Organization for Animal Health (WOAH), according to guidelines from the body. Brazil's first outbreak hit a chicken breeder farm in the town of Montenegro, where 17,000 birds were culled. https://www.reuters.com/business/healthcare-pharmaceuticals/brazil-poised-declare-itself-bird-flu-free-state-official-says-2025-06-18/
2025-06-18 19:26
Hurricane Erick rapidly strengthens into Category 3 Storm to make landfall early Thursday on Mexico's Pacific Coast Emergency planning underway in both affected states MEXICO CITY, June 18 (Reuters) - Hurricane Erick strengthened rapidly into a major Category 3 hurricane on Wednesday as it churned toward Mexico's southern Pacific Coast, where it is expected to make landfall early Thursday, authorities said. Erick is expected to bring potentially destructive winds and life-threatening flash flooding to parts of southern Mexico tonight and Thursday, the U.S. National Hurricane Center said in a report. Sign up here. "A hurricane hunter aircraft reports that Erick is a major hurricane," the NHC said in its latest update at 6 p.m. CST (2300 GMT). Erick will be the first hurricane to make landfall in Mexico this hurricane season, which runs from May to November. Forecasters predict an above-average active season, with between eight and 11 hurricanes, and four to six of those reaching major hurricane status. Scientists have warned that Erick could become the most intense hurricane to make landfall along Mexico's Pacific coast this early in the season. With maximum sustained winds of 195 kph (121 mph), Erick was located 90 km (about 56 miles) from the tourist enclave of Puerto Angel, where a hurricane warning is in effect and westward to the resort city of Acapulco. A Category 3 hurricane on the Saffir-Simpson scale has maximum sustained winds between 181 and 210 kph (112-130 mph) and is considered extremely dangerous and capable of causing devastating damage. EMERGENCY PREPARATIONS Up to 16 inches (about 41 cm) of rain is expected to hit the states of Oaxaca and Guerrero, according to NHC. Both states have begun emergency planning and taken preventive actions with local authorities. Over 18,000 first responders have been deployed and over 500 temporary shelters have been activated, according to authorities. Mexican authorities are also coordinating evacuation and care efforts for tourists in popular beach destinations, including Acapulco, which is still hurting from Hurricane Otis' devastation , opens new tab in October 2023. Acapulco's international airport announced on its X account that all flights scheduled for Thursday had been suspended. Mexican President Claudia Sheinbaum urged residents to stay indoors and move to shelters if they are in flood-prone areas. Mexico's national water commission, Conagua, warned rainfall in coastal areas could trigger landslides and flooding, with waves reaching up to 6 meters (20 feet) high. https://www.reuters.com/business/environment/erick-becomes-hurricane-off-mexicos-pacific-coast-2025-06-18/
2025-06-18 19:08
June 18 (Reuters) - Federal Reserve Chairman Jerome Powell cautioned on Wednesday not to place too much stock in the central bank's interest rate forecasts, which could change based on incoming data, especially on the inflation front. On a day when the Fed reiterated its expectation that its short-term interest rate target will be lowered twice this year, Powell said at a press conference following Fed's policy meeting that “no one holds these...rate paths with a great deal of conviction, and everyone would agree that they're all going to be data dependent.” Sign up here. Powell also said, "Every outside forecaster and the Fed is saying, is that we expect a meaningful amount of inflation to arrive in coming months, and we have to take that into account." https://www.reuters.com/business/feds-powell-cautions-little-conviction-forecasted-rate-outlook-2025-06-18/
2025-06-18 18:44
Circle closes up 33.8%, Coinbase and Robinhood also gain Senate passes stablecoin bill with rare bipartisan support Market eyes House vote and possible passage by end of summer Legislation seen as turning point for crypto oversight June 18 (Reuters) - Shares of stablecoin issuer Circle (CRCL.N) , opens new tab and crypto exchange Coinbase (COIN.O) , opens new tab surged on Wednesday after the U.S. Senate passed a landmark stablecoin bill, boosting hopes of wider adoption for a once-niche part of the crypto sector. The bill was passed with bipartisan support, marking a turning point in the debate over crypto oversight, and a breakthrough for a sector long stuck in regulatory limbo. Sign up here. The tokens have gained traction for offering crypto's convenience without its volatility. Pegged to currencies like the U.S. dollar, they aim to hold a stable value backed by reserves. Circle shares closed up 33.8%. Coinbase ended 16% higher, while commission-free brokerage Robinhood (HOOD.O) , opens new tab, which offers crypto trading, gained 4.5%. The Republican-controlled House of Representatives must pass its version of the bill, known as the GENIUS Act, before it heads to President Donald Trump for approval. "Once passed into a law (likely by the end of summer), we expect stablecoins to evolve from the money rail of crypto to the money rail of the internet," analysts at brokerage Bernstein said. Circle, the issuer of the second-largest stablecoin by market value, went public earlier this month in a blowout debut on the New York Stock Exchange. Its shares closed at $199.59 versus IPO price of $31. The stock was last up another 4.4% after the bell. The company's flagship USDC stablecoin has a market value of around $61.4 billion, according to data from CoinGecko. Circle co-founded USDC in partnership with Coinbase. The token underpins much of the crypto exchange's stablecoin revenue, which jumped nearly 51% in the first quarter as USDC's market value hit a record high. The stablecoin legislation is one of two major crypto bills that industry supporters hope to have signed into law this year, analysts at Barclays said. GAINING MOMENTUM Proponents say by setting clearer rules for issuing and managing dollar-pegged tokens, the bill could bring greater legitimacy to the sector. Several high-profile corporates are also reportedly exploring launching their own stablecoins. "History is being made," Circle CEO Jeremy Allaire said in a post on social media platform X, adding that he expects the legislation will "drive U.S. economic and national competitiveness for decades to come." If signed into law, the GENIUS Act could unlock fresh growth in the $256 billion stablecoin market and boost revenue for digital asset infrastructure firms such as Circle and Coinbase. "While stablecoin demand is already impressive, the new bill advancing through Congress can accelerate that demand," said Andrew Rocco, stock strategist at Zacks Investment Research. "The bill would finally put a regulatory framework around issuing and operating stablecoins, lending credibility to the industry." If signed into law, stablecoins will have to be backed by liquid assets such as the dollar and short-term Treasury bills. Issuers will also have to publicly disclose the composition of their reserves on a monthly basis. "Stablecoin adoption could also serve as a strong tailwind for major cryptocurrencies like bitcoin," analysts at brokerage KBW said. https://www.reuters.com/business/circle-surges-us-senate-clears-path-stablecoin-regulation-2025-06-18/
