2025-06-02 11:54

PARIS, June 2 (Reuters) - Latvia has reported a first outbreak of highly pathogenic H5N1 avian influenza among poultry, the World Organisation for Animal Health said on Monday. The outbreak occurred in a flock of 190 backyard poultry birds in the district of Birzgales, Paris-based WOAH said in a notice, citing Latvian authorities. Sign up here. https://www.reuters.com/business/healthcare-pharmaceuticals/latvia-reports-bird-flu-backyard-poultry-2025-06-02/

2025-06-02 11:25

June 2 (Reuters) - Sterling had a firm start to the week on Monday, as investors assessed a domestic defence plan and a batch of better-than-expected British economic data, while simmering trade tensions between the U.S. and China eroded appetite for the dollar. The mood among investors generally was sour, after U.S. President Donald Trump said on Friday he planned to double duties on imported steel and aluminium to 50% from this Wednesday, and as Beijing hit back against accusations it violated an agreement on critical mineral shipments. Sign up here. The pound rose 0.53% to $1.3531 by 1056 GMT, largely as a function of the dollar's broad decline against a range of currencies. Against the euro , sterling was virtually flat at 84.37 pence. In the UK, investors weighed the impact that the latest effort to expand its defence systems could have on public spending, with a defence review expected to be published on Monday. "Fiscal constraints will... limit how much the UK can invest into its defence arsenal – prompting questions around the sustainability of the government's fiscal framework," Deutsche Bank senior economist Sanjay Raja said. "A potentially bigger role for the UK in European defence and security will require larger incentives from the EU vis-à-vis a refined trade deal." Concerns are that Prime Minister Keir Starmer's government could cause fiscal debt levels to balloon as defence spending rises, at a time when investors have been demanding a higher rate of returns from longer-dated developed market debt. Yields on benchmark 10-year gilts were little changed on the day around 4.67%. On the data front, markets were relieved that a survey showed that the downturn in British manufacturing was less steep than first feared in May. Separately, UK house prices in May were 3.5% higher than a year earlier, monthly data from mortgage lender Nationwide showed, helped by buyers that sought to complete transactions before the end of a partial exemption on purchase taxes. While upbeat consumer demand against a broader cloudy economic outlook globally have aided appetite for UK assets, signs of persistent price pressures have been a concern and led investors now to price in just a little more than one more 25 basis point interest rate cut by the Bank of England this year. Comments from policymaker Catherine Mann later in the day could shed more light on the central bank's policy outlook. The pound is trading close to more than three-year highs it hit last month as investors viewed the UK economy as better insulated from trade threats, while U.S.-dollar denominated assets have declined. https://www.reuters.com/world/uk/sterling-firms-with-focus-defence-plan-weaker-dollar-2025-06-02/

2025-06-02 11:21

Seeks as much as $896 million in upsized IPO Now offering up to 32 million shares, up from 24 million shares earlier Company raises IPO price range to $27-$28 apiece June 2 (Reuters) - Circle Internet said on Monday it was targeting a valuation of up to $7.2 billion on a fully diluted basis in its upsized U.S. initial public offering, underscoring growing momentum in the stablecoin market. The upsized IPO indicates strong investor appetite for crypto firms. U.S. President Donald Trump has not only promised friendlier regulations for the sector, but also sparked conflict of interest concerns due to several crypto projects associated with him. Sign up here. "Issues regarding meme-coin hype and more specifically Trump's ventures into a namesake coin should not directly affect the outlook for stablecoins backed by hard currency," Michael Ashley Schulman, chief investment officer of Running Point Capital, said. Stablecoins are designed to maintain a constant value, usually a 1:1 dollar peg, and are commonly used by crypto traders to move funds between tokens. New York-based stablecoin issuer Circle and some existing investors are now looking to raise up to $896 million from 32 million shares priced between $27 and $28 apiece, up from their earlier offer of 24 million shares between $24 and $26. Circle's dollar-denominated USDC, the second-largest stablecoin in the world, is expected to benefit from the pending stablecoin bill. "The upsizing feels less like regulatory clairvoyance and more like a calculated bet that even a slow-moving bill won't derail the global payments story they're selling," Schulman added. Circle's reserve income, its primary revenue source, from interest on the Treasuries backing its USDC coin, rose 55.1% to $557.9 million in the quarter ended March 31. But distribution and transaction costs for the period jumped 68.2%, outpacing revenue growth for Circle, which distributes USDC primarily via its partnership with Coinbase and other third-party distributors. Circle is poised to go public in New York later this week. https://www.reuters.com/business/circle-shareholders-aim-raise-896-million-upsized-us-ipo-2025-06-02/

2025-06-02 11:03

BRUSSELS, June 2 (Reuters) - The European Union's independent advisers have warned against watering down the bloc's planned 2040 climate goal, as EU officials consider softening the target to try to contain a political backlash against ambitious environmental policies. The European Commission plans to propose in July a legally binding target to cut EU countries' emissions by 90% by 2040, from 1990 levels. But faced with pushback from governments, Brussels is assessing options including setting a lower target for domestic industries, and using international carbon credits to make up the gap to 90%. Sign up here. The EU's climate science advisers, the European Scientific Advisory Board on Climate Change (ESABCC), warned against this approach, which they said risked diverting funds away from investments in European industries and infrastructure. "Using international carbon credits to meet this target, even partially, could undermine domestic value creation by diverting resources from the necessary transformation of the EU's economy," the ESABCC said, in an analysis of the 2040 target, published on Monday. A Commission spokesperson did not directly respond to the advisers' warning on carbon credits. "The Advisory Board, faithful to its task to provide scientific advice in full independence, reminds us today in its report (of) the urgent need of ambitious climate action and the importance of setting a 2040 emissions reduction target," the spokesperson said. Counting carbon credits would mean EU countries could buy credits from projects that reduce CO2 emissions abroad - for example, forest restoration in Brazil - and count them towards the EU goal. Proponents say these credits are a crucial way to raise funds for CO2-cutting projects in developing nations. But some EU officials are wary. The EU banned international credits from its carbon market in 2013, after a flood of cheap credits with weak environmental benefits contributed to a carbon price crash. Despite geopolitical headwinds, looming U.S. tariffs and high energy prices, the ESABCC said it was sticking to its recommendation from 2023, that the EU agree to a 90-95% net reduction in greenhouse gas emissions for 2040 - which, it said, is achievable and in line with global goals to avert worse climate change. This would require a nearly entirely emissions-free power sector by 2040 and a shift to electrify polluting industries. The advisers said this would bring benefits including less pollution-related health problems, driving investments to modernise industries, and improving security by reducing Europe's reliance on imported fossil fuels. https://www.reuters.com/sustainability/cop/eu-warned-by-advisers-not-weaken-new-climate-goal-2025-06-02/

2025-06-02 10:59

NAPERVILLE, Illinois, May 30 (Reuters) - Record volumes of U.S. ethanol have been churned out since late last year, largely due to an uptick in exports and steady domestic demand. But output has slipped from those record levels over the last couple of weeks, coinciding with the ramp-up of the summer driving season. Sign up here. Luckily, large stockpiles of the corn-based fuel additive can offset some of the easing in output for now. However, both exports and domestic travel trends will need to be monitored in the coming weeks and months since this is when U.S. motor gasoline demand typically peaks. RECENT DATA Over the four weeks ended May 23, U.S. ethanol production averaged roughly 1.026 million barrels per day. That is the best for the period in six years but behind the levels of six and seven years ago. Ethanol production typically dips at this time of year and output had been running at record rates from late last year through early spring, causing supplies to approach the 2020 records in March. U.S. ethanol stocks have since experienced a seasonal drawdown but remain at record levels for the date, with strong rates of both production and use somewhat offsetting each other. Huge exports have contributed to the elevated use levels in recent months. On the other hand, implied U.S. motor gasoline demand has not necessarily been impressive. Over the last couple of months, rates have been similar to the year-ago levels but well off the volumes before the pandemic, which was when demand for U.S. gasoline is thought is thought to have peaked. Increased fuel efficiency and post-pandemic changes in driving patterns – particularly remote working – have reduced U.S. gasoline consumption, an inherent threat to the U.S. ethanol industry. But the push for cleaner fuels abroad has been a bright spot. Although exports accounted for just 11% of U.S. ethanol produced in the 2023-24 marketing year, shipments reached record levels, supported by Canadian, British and Indian demand. EXPORTS AND TRAVEL FACE OFF Although exports have been the cornerstone of the U.S. ethanol industry this year, they have largely slowed below the year-ago levels in the last month or so, hitting an eight-week low last week. Exporters do have a cushion, as September-March shipments were easily a record for the period, up 26% on the year. However, this recent easing in ethanol exports could potentially be offset by a bump in U.S. gasoline demand this summer. As of April 2025, some 53% of Americans planned to take leisure vacations this summer versus 48% a year earlier, according to Deloitte’s annual travel survey. This is despite a decline in their sense of financial well-being over the last year. The more frugal approach means that Americans plan to increasingly favor driving trips versus the previous few summers, including a higher frequency of trips as many are adding multiple short getaways. Gas prices are largely friendly for that effort, with the national average price for unleaded fuel sitting about 11% lower than a year ago. But consumer habits can abruptly shift whenever economic uncertainty spikes, and 2025 has been particularly rife with those risks. Karen Braun is a market analyst for Reuters. Views expressed above are her own. https://www.reuters.com/markets/commodities/us-ethanol-output-eases-off-record-pace-summer-travels-heat-up-braun-2025-05-30/

2025-06-02 10:58

BAKU, June 2 (Reuters) - Turkish state oil company TPAO will sign a gas production-sharing agreement with Azerbaijan's SOCAR and BP (BP.L) , opens new tab for the Shafaq-Asiman offshore block on the Caspian sea, Turkey's energy minister said on Monday. "Today, we are taking further steps with the signing of a major agreement that will increase our oil and gas production in Azerbaijan," Minister Alparslan Bayraktar said at the Baku Energy Week conference. Sign up here. TPAO's share will be 30% and there are also "talks on other fields," Bayraktar said, according to a ministry statement, which added that the agreement will be signed on Tuesday. The Shafag-Asiman block is 125 kilometres (78 miles) southeast of Baku and at depth of 650-800 metres, according to SOCAR's website. The first exploration well was drilled in 2020. https://www.reuters.com/business/energy/turkey-azerbaijan-bp-caspian-sea-oil-gas-production-deal-2025-06-02/