2025-06-11 09:25
NAIROBI, June 11 (Reuters) - Kenya's central bank has lowered its 2026 economic growth forecast to 5.4% from a 5.6% forecast given in April, its governor Kamau Thugge said on Wednesday. On Tuesday the Central Bank of Kenya reduced its 2025 growth forecast to 5.2% from 5.4% as it cut its benchmark lending rate (KECBIR=ECI) , opens new tab for the sixth meeting in a row, saying it wanted to provide further support to the economy. Sign up here. The Central Bank Rate was lowered by 25 basis points (bps) to 9.75%, whereas its previous cut was by a larger 75 bps. https://www.reuters.com/world/africa/kenya-central-bank-lowers-2026-growth-forecast-54-2025-06-11/
2025-06-11 07:46
June 11 (Reuters) - Slovakia will not back the EU's 18th package of sanctions against Russia unless the European Commission provides a solution to the situation the country faces if the bloc phases out Russian energy as planned, Prime Minister Robert Fico said. The Commission proposed on Tuesday a new round of sanctions against Russia for its invasion of Ukraine more than three years ago, targeting Moscow's energy revenues, its banks and its military industry. Sign up here. Fico has criticised separate European Union plans to phase out Russian gas and other energy imports in the coming years, which the EU executive announced last month, calling them "economic suicide". Hungary, which like Slovakia, continues to rely on Russian gas and oil supplies, and like Slovakia has maintained warm ties with Moscow, has also rejected the plans. EU countries will start debating the sanctions proposals this week, which require unanimity in the bloc for approval. "Slovakia will not support the upcoming 18th sanctions package against Russia unless the European Commission provides it with a real solution to the crisis situation that Slovakia will find itself in after the complete cessation of gas, oil and nuclear fuel supplies from Russia," Fico wrote in a Facebook post late on Tuesday. Slovakia has not blocked any previous sanctions packages. But Fico had said over the weekend Slovakia would block any sanctions that harmed its national interests. The Commission's new sanctions package proposes banning transactions with Russia's Nord Stream gas pipelines, as well as banks that engage in sanctions circumvention. The Commission has also proposed lowering the Group of Seven nations' price cap on Russian crude oil to $45 a barrel, from $60 a barrel, to cut Russia's energy revenues. Fico has long opposed sanctions against Russia, saying they harmed Slovakia and the EU more than Moscow. https://www.reuters.com/business/energy/slovakia-cannot-support-new-eu-sanctions-against-russia-without-energy-solutions-2025-06-11/
2025-06-11 07:45
HANOI, June 11 (Reuters) - Vietnam has formally launched the pilot phase of an emissions trading scheme aimed at encouraging three major industrial sectors to cut the amount of carbon dioxide they produce, the government said on Tuesday. Under the scheme, Vietnam's steel, cement and thermal power producers will be forced to buy allowances to cover their carbon dioxide intensity - the amount of CO2 generated per unit of output, according to a decree issued by the government. Sign up here. The new scheme will cover around 50% of Vietnam's total CO2 emissions over its first phase, which will last until 2029. It will then be expanded to other sectors, including cargo transportation and commercial buildings. The first batch of emission allowances for 2025-2026 will be allocated to the companies by the end of this year. Firms that exceed their allowances will have to make up the shortfall by buying credits on the market. The scheme will also allow firms to offset as much as 30% of their emissions by buying credits from low-carbon projects at home or overseas. The new ETS is unlikely to have an immediate impact on the emissions of major industries, with most of the allowances expected to be allocated free of charge in the first phase, said Mai Duong, an analyst at Veyt, a carbon market data provider. "The priority is first to help entities adapt to the system, rules and regulations, rather than delivering immediate environmental impacts," she said. Carbon trading is set to become a key part of Vietnam's efforts to meet a target to achieve "net zero" emissions by 2050. Vietnam's emissions have been rising in recent years, mostly as a result of a surge in coal-fired power generation, which soared nearly 18% last year. Crude steel production in 2024 also jumped 15% on the year. https://www.reuters.com/sustainability/climate-energy/vietnam-launches-first-phase-emissions-trading-scheme-2025-06-11/
2025-06-11 07:34
Top macadamia producer South Africa exploring Asian markets Trump announced 31% tariff on US imports from South Africa The US is South Africa's second largest macadamia market LIMPOPO, June 11 (Reuters) - Gene Likhanya's macadamia nut farm, started with personal savings and built up over two decades in South Africa's picturesque Madimbo valley, faces a sudden challenge from U.S. import tariffs that is causing him to look for other markets. South Africa is the world's top producer of macadamia nuts, known for their distinctive buttery flavour and cherished by some for their perceived health benefits, and the U.S. is its second largest market behind China. Sign up here. Likhanya has big ambitions for a business he has already grown to employ 78 people and that has just produced 25 tonnes of nuts this year. He aims to triple output over the next four years. But U.S. President Donald Trump's drive to impose higher tariffs could disrupt that. Although the "reciprocal" levies announced by Trump on April 2 - set at 31% for South Africa - have been paused to allow for negotiations, Likhanya said he and fellow macadamia nut farmers were already looking for alternative markets. "I feel that there's so much more we can do internationally to explore other markets. There are markets we are busy talking to. We're talking to India," Likhanya, 40, told Reuters in an interview at his farm. "India has 1.5 billion people that are also looking for macadamia. So there's always an alternative plan." Other South African farmer groups have warned of potential devastation from the U.S. tariffs. Citrus growers, whose annual exports to the U.S. average $100 million, have said that tariffs could potentially hit 35,000 jobs in their industry. Likhanya, a board member at Macadamias South Africa, the main industry body for growers, described the tariff stand-off as a "lose-lose" situation and hopes it can be resolved. "America imports kernels, which they further process. Those (processing) jobs are threatened. So it's a win-win or lose-lose kind of a situation, which I feel we do not want to get into," he said. ($1 = 17.7200 rand) https://www.reuters.com/world/africa/south-african-macadamia-farmers-eye-new-markets-after-us-tariff-jolt-2025-06-11/
2025-06-11 07:13
SEOUL, June 11 (Reuters) - South Korean President Lee Jae-myung said on Wednesday the government was preparing to revamp the country's tax system to boost dividend payouts, as part of a broader push to make the domestic stock market more attractive. "If it does not greatly hurt public finances, it will be better to lower (taxes) for more dividend income," Lee said during a visit to the Korea Exchange. Sign up here. Lee also ordered regulatory improvements to prevent unfair trading practices in the market and a "one-strike-out" system to penalize illegal trades, according to his spokesperson. One of Lee's major pledges during his election campaign was to implement various capital market reforms and resolve the so-called "Korea Discount", a tendency for South Korean companies to trade at a lower valuation than global peers due to low dividend payouts and opaque corporate governance. The day after Lee took office on June 4, his Democratic Party reintroduced legislation expanding the fiduciary duty of board members to protect shareholder interests and it plans to have the bill approved this month. The country's benchmark KOSPI stock index (.KS11) , opens new tab has rallied since Lee's election victory last week on optimism around his "KOSPI 5,000" initiative aiming for the index to eventually reach 5,000 points. On Wednesday, it closed up 1.23% at 2,907.04, the highest level since January 14, 2022. https://www.reuters.com/world/asia-pacific/south-korea-revamp-tax-scheme-boost-dividends-part-stock-market-reform-2025-06-11/
2025-06-11 06:57
US-China trade deal is 'done,' Trump says Markets guarded, await more details Chinese equities rise, US stocks edge up Investors hope for robust deal, but prepare for more uncertainty NEW YORK/SINGAPORE, June 11 (Reuters) - The latest trade truce between China and the United States offers investors hope that the two superpowers can reach a lasting resolution and prevent further market disruption, but the absence of detailed terms leaves room for potential future tariff conflicts. President Donald Trump said on Wednesday the U.S. deal with China is done, with Beijing to supply magnets and rare earth minerals while Washington will allow Chinese students in U.S. colleges and universities. Sign up here. China's Vice Commerce Minister Li Chenggang said on Tuesday that the Chinese and U.S. negotiating teams had agreed a framework on trade after two days of talks, and would take that back to their leaders. A White House official said the agreement allows the U.S. to charge a 55% tariff on imported Chinese goods. Wall Street stocks edged down, while the dollar slipped. Chinese stocks (.SSEC) , opens new tab, (.CSI300) , opens new tab inched up to near three-week highs. The guarded reaction from currency and stock investors showed that while the meeting ended in a truce, markets had hoped for more. The lack of details means uncertainty is likely to remain high. "The details are scarce, and both sides are claiming that their needs were satisfied ... but this issue is not close to being settled," Chris Grisanti, MAI Capital Management's chief market strategist, said. The main positive takeaway was the talks indicated pragmatism on both sides, analysts said. While the outcome of the talks supported riskier assets, investors appeared to remain vigilant. "The devil is in the details... The other big piece of news is the U.S. and China seem to have a framework for further discussions, and that contradicts a statement of 'it's a done deal'," said Oliver Pursche, senior vice president at Wealthspire Advisors, in New York. With most negotiations incomplete as Trump's July 8 deadline for a 90-day pause on tariffs on other U.S. trading partners approaches, investors remain watchful. Markets plunged after Trump's "Liberation Day" tariff announcement on April 2 as investors worried about an impending recession, but those fears eased as Trump rolled back most of the punitive tariffs. The benchmark S&P 500 index (.SPX) , opens new tab has risen more than 20% from its April lows, and is close to reclaiming a record high. Chinese stocks have underperformed as investors fret over a persistently weak economy, but have nonetheless recouped losses to return to the April 2 level. TARIFF REPRIEVE U.S. Commerce Secretary Howard Lutnick said the latest plan to ink a deal put "meat on the bones" of an agreement reached last month in Geneva to ease bilateral retaliatory tariffs that had reached crushing triple-digit levels. While this might remove some of the extreme gloom scenarios for markets, investors would need more concrete steps to fully rejoice. The broad impact of the duties in a trade war that could bring $600 billion in two-way trade to a standstill is being felt in both economies. Economists say the damage from the tit-for-tat duties and volatility in financial markets would be an overhang on the global economy for months. Phillip Wool, chief research officer and lead portfolio manager at Rayliant Global Advisors, said investors bidding stocks back to record highs were significantly underestimating the damage already caused by uncertainty this year. "I’m feeling more cautious and opportunistic than unconditionally bullish at this moment," he said. "If any major deal is reached, we could see stocks rally in response, but my sense is that’s more emotion at this point, and the euphoria could be short-lived as new risks materialize.” China's economy needs a reprieve from tariffs that have hit its exports as the country battles deep deflationary pressures and weak consumption. The ultimate trade war impact on U.S. inflation and the jobs market remains to be seen, but tariffs have hammered U.S. business and household confidence. That has pushed the dollar down more than 8% against other major currencies this year, as investors worry about the U.S. economy and fiscal health. A Republican bill to cut taxes and spend more has exacerbated worries about U.S. debt. Other challenges facing Trump further raise the stakes for a successful negotiation with China. They include a spectacular fallout with the world's richest person, Elon Musk, intense scrutiny of his tax bill and street protests in Los Angeles over his administration's immigration policy. https://www.reuters.com/world/china/chinas-latest-trade-truce-with-us-leaves-investors-none-wiser-2025-06-11/
