2025-01-07 20:42

GENEVA, Jan 7 (Reuters) - The risk to the general population from H5N1 bird flu remains low, a World Health Organization spokesperson said on Tuesday, following the first death of a patient from the virus in the United States. The patient, who was over 65 and had underlying medical conditions, was hospitalised with the virus in December after exposure to a combination of backyard chickens and wild birds, Louisiana health officials said. "We are concerned, of course, but we look at the risk to the general population and ... it still remains low," WHO spokesperson Margaret Harris told reporters at a Geneva press briefing in response to questions about the risks of the virus. Asked whether U.S. monitoring of the virus was sufficient, she said: "They are doing a lot of surveillance. That's why we're hearing about it." Nearly 70 people in the U.S. have contracted bird flu since April, most of them farmworkers, as the virus has circulated among poultry flocks and dairy herds, according to the U.S. Centers for Disease Control and Prevention. Like the WHO, U.S. federal and state officials have said the risk to the general public remains low. Sign up here. https://www.reuters.com/world/us/bird-flu-risk-remains-low-after-first-us-death-who-says-2025-01-07/

2025-01-07 19:57

Canadian dollar falls 0.1% against the greenback Trades in a range of 1.4298 to 1.4365 Canada posts narrower-than-expected trade deficit Bond yields rise across a steeper curve TORONTO, Jan 7 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Tuesday as American economic data supported bets for a slower pace of interest rate cuts by the Federal Reserve, but the currency kept hold of much of the previous day's gains. The loonie was trading 0.1% lower at 1.4350 per U.S. dollar, or 69.69 U.S. cents, after moving in a range of 1.4298 to 1.4365. On Monday, the currency touched nearly a three-week high at 1.4280 as a report cast doubt on the severity of expected U.S. trade tariffs and Canadian Prime Minister Justin Trudeau announced his plans to resign. A Canadian election is possible in the spring and must be held by Oct. 20, with polls showing voters will elect the opposition Conservatives. "A change in the leadership in Canada is not a long-term negative for the loonie," said Amo Sahota, executive director at Klarity FX in San Francisco. "People are looking at a new Conservative government which would probably be more pro-business, maybe less spending in there as well." The U.S. dollar gained on Tuesday against a basket of major currencies after economic data showed a generally stable jobs market and a robust services sector. The price of oil, one of Canada's major exports, was supported by concerns over tighter supply from Russia and Iran. U.S. crude oil futures settled 0.9% higher at $74.25 a barrel. Canada posted a narrower-than-expected trade deficit of C$323 million ($225.6 million) in November as exports rose faster than imports. Separate data showed that the seasonally adjusted Ivey Purchasing Managers Index (PMI) rose to 54.7 from 52.3 in November, reaching its highest level since July. Canadian bond yields moved higher across a steeper curve, tracking moves in U.S. Treasuries. The 10-year was up 7.3 basis points at 3.309%. Sign up here. https://www.reuters.com/markets/currencies/canadian-dollar-consolidates-prior-days-gains-election-looms-2025-01-07/

2025-01-07 18:58

BUENOS AIRES, Jan 7 (Reuters) - Argentina's country risk index, an important reflection of how investors view the country's public debt, closed on Tuesday slightly below the previous day's close, after a steep fall earlier in the day surprised officials and analysts. The closely watched J.P. Morgan risk benchmark, which shows the yield spread on Argentine sovereign government bonds versus comparable U.S. debt, closed at 561 points, after plummeting earlier to 444, its lowest level since 2018. While Argentina's government shoulders massive liabilities, markets have recently cheered cooling inflation and early signs of an economic rebound following years of a deep economic slump. According to traders, the index reading was adjusted due to technical issues that had caused the steep slide and were related to key bond payments expected later this week. Argentina is set on Thursday to pay off $4.3 billion in principal and interest on its "Bonares" and "Globales" bonds. Earlier on Tuesday, Felipe Nunez, an economist at Argentina's Treasury, wrote on social media that the index showed "a mismatch in the price due to coupon payments and amortization of the bonds." The country risk index has been falling due to rising optimism in Argentine financial markets, and broke the 600-point threshold on Monday. Argentina's falling country risk reflects optimism in the country's financial markets under President Javier Milei, who took office in late 2023 and has implemented a cost-cutting economic program targeting sky-high inflation and government spending. Nicolas Merino, from trading group ABC Mercados de Cambio, credited the country risk's reduction in part to Argentina's trade balance, which notched its 12th-consecutive monthly surplus in November. Merino also credited the country's recovering foreign reserves, expectations of a new debt agreement with the International Monetary Fund, and a recent $1-billion repurchase agreement loan with five foreign banks. Sign up here. https://www.reuters.com/world/americas/argentina-country-risk-plummets-lowest-level-since-may-2018-2025-01-07/

2025-01-07 18:25

Shein seeking London IPO Shein lawyer repeatedly avoids answering lawmakers' questions Committee chair says responses "bordered on contempt" LONDON, Jan 7 (Reuters) - A Shein representative declined to provide a direct answer when asked by a British parliamentary committee on Tuesday whether the online fast-fashion retailer uses cotton from China or from its Xinjiang province, a key issue for potential investors concerned about its supply chain. The repeated refusal by Shein's general counsel for Europe, Middle East and Africa (EMEA), Yinan Zhu, to answer lawmakers' questions "bordered on contempt" for the cross-party business and trade committee, said Liam Byrne, the committee chair. Singapore-headquartered Shein, which was founded in China in 2012, is awaiting regulatory approvals for an initial public offering (IPO) from both Britain's Financial Conduct Authority and China's securities regulator. Asked about Shein's supply chain, Zhu said: "The suppliers we work with, they are based in China, in Turkey and Brazil, and obviously many of them are in China." She asked the committee for permission to write to them about further questions, when pressed further on whether the company sources cotton from China and specifically from its Xinjiang province. When asked about the IPO, Zhu said she was not able to comment. "For a company that sells a billion pounds to UK consumers, and for a company which is seeking to float on the London Stock Exchange, the committee has been pretty horrified by the lack of evidence that you have provided today," said Byrne, who appeared visibly exasperated as the hearing progressed. "You've given us almost zero confidence in the integrity of your supply chains. You can't even tell us what your products are made from. You can't tell us much about the conditions which workers have to work in, and the reluctance to answer basic questions has frankly bordered on contempt of the committee." When asked whether the company was confident it was in compliance with the UK Modern Slavery Act, Zhu said: "Our position is we are compliant with relevant UK laws." CHINESE CONSUMER RISK Shein has faced allegations that its products contain cotton from China's Xinjiang province, where the U.S. and NGOs have accused the Chinese government of forced labour and human rights abuses. Beijing denies any abuses. Shein has previously said it requires contract manufacturers to only source cotton from approved regions, and that it has a zero-tolerance policy for forced labour. But publicly distancing itself from Xinjiang cotton is risky, as retailers that have done so in the past faced criticism and boycotts from Chinese consumers, and pushback from Chinese authorities. Most recently, Japan's Uniqlo was slammed on Chinese social media after a November BBC interview in which Chief Executive Tadashi Yanai said the retailer is not using cotton from the region. In a hearing after Shein's session on Tuesday, Independent Anti-Slavery Commissioner Eleanor Lyons told lawmakers: "I don't think they [Shein] are being transparent about what is going on in their supply chains, I would want to hear more from them and understand that they are truly looking into the potential human rights violations within them." Shein, which sells 2.99-pound ($3.75) dresses and jeans for as little as six pounds on its UK site, has grown rapidly and was valued at $66 billion in a fundraising in 2023. Shein has not disclosed any results at a group level, but its British business made 1.55 billion pounds ($2 billion) in revenue in 2023, filings showed last year. In contrast with Zhu, Temu's senior legal counsel Stephen Heary said the online retailer, part of Chinese ecommerce giant PDD Holdings (PDD.O) , opens new tab, does not permit sellers from the Xinjiang region to sell on its platform. Sign up here. https://www.reuters.com/business/retail-consumer/shein-representative-declines-say-if-company-uses-cotton-china-uk-hearing-2025-01-07/

2025-01-07 18:22

Fitch skeptical of quick debt-limit resolution due to narrow Republican majority Temporary funding measures highlight obstacles in fiscal agreements Credit default swap spreads widen amid debt-ceiling concerns NEW YORK, Jan 7 (Reuters) - A unified government under President-elect Donald Trump is unlikely to lead to a quick resolution of the U.S. debt-ceiling debate given a narrow Republican House majority and continued disagreements within the party on spending policies, said ratings agency Fitch. As part of a 2023 budget agreement, Congress temporarily lifted the debt ceiling until Jan. 1, 2025. While the U.S. Treasury can continue covering its obligations for several more months, Congress must revisit the issue this year to avoid a debt default. Fitch, which downgraded the U.S. government credit profile in 2023 after a debt-ceiling crisis, said on Tuesday it was skeptical that a debt-limit suspension or increase, as well as other key fiscal policy decisions expected this year, will be implemented quickly. "The U.S. faces significant fiscal policy challenges in 2025 ... We believe it is unlikely that these will be resolved expeditiously because of long-standing weaknesses in the federal government’s budgetary process and a narrow Republican House majority," it said in a statement. Hopes that one-party control of government could make it easier to agree on raising the debt ceiling were dented last month when Congress passed spending legislation in a down-to-the-wire vote that averted a destabilizing government shutdown. Several Republicans rejected Trump's demand to use the bill to lift the nation's debt ceiling. The last-minute resolution was consistent with the ratings agency's expectations that Congress would rely on temporary funding measures, and demonstrated "the potential obstacles to securing agreements on fiscal measures, both within Congress and between Congress and the President," Fitch said. The cost of insuring exposure to U.S. government debt has started to climb this week, with spreads on U.S. six-month and one-year credit default swaps - market-based gauges of the risk of a default - widening by three and four basis points, respectively, compared to last week, S&P Global Market Intelligence data showed on Tuesday. The 2023 debt-ceiling showdown spurred a selloff in stocks and bonds, pushed the U.S. to the brink of default and hurt the country's credit rating. Fitch said it expects U.S. policymakers to eventually reach an agreement on the debt ceiling as well as on other key fiscal policy items, such as the extension of 2017 tax cuts set to expire this year. But a still-challenging political environment means decisions are likely to be reached on an issue-by-issue basis, it said, "underscoring the U.S.’ deterioration in governance on fiscal matters over recent years." Sign up here. https://www.reuters.com/markets/us/fitch-warns-us-debt-ceiling-stalemate-despite-republican-controlled-government-2025-01-07/

2025-01-07 18:14

BRASILIA, Jan 7 (Reuters) - Brazil's Finance Minister Fernando Haddad said on Tuesday that the country's economic growth likely hit 3.6% in 2024, while the primary deficit for the year is expected to have reached 0.1% of gross domestic product (GDP). This means the government of leftist President Luiz Inacio Lula da Silva probably met its goal of eliminating the primary deficit, excluding interest payments, as the target allows for a tolerance margin of 0.25% of GDP, or a deficit of up to 28.8 billion reais. Speaking in an interview with TV channel GloboNews, Haddad said his goal was to leave the economy "in better shape than I received," which would involve controlling spending "in the right way, without harming low-income workers." Haddad emphasized the need for the government to improve its communication at a time when global markets remain highly "sensitive." He said that the external environment is more challenging and the entire world is concerned about how the U.S. economy will be managed, with news on this front having a quick and significant impact on asset prices. After a long-anticipated package of spending cuts disappointed markets late last year, further weakening the country's currency, Haddad said the inclusion of income tax exemptions in the announcement may have contributed to the backlash, as well as the delayed disclosure of the measures. Nevertheless, he called the reaction of the Brazilian real "exaggerated" and expressed confidence that the foreign exchange rate would eventually "accommodate." Last year, the currency slumped 27% against the U.S. dollar, one of the worst performances among emerging markets, weighing on inflation expectations and contributing to the tightening of monetary policy, now under the leadership of governor Gabriel Galipolo, appointed by Lula and a former deputy at the Finance Ministry. Haddad said that the government will not always agree with the central bank's diagnosis but emphasized that each has its role, reiterating that Lula has already highlighted his commitment to respecting policymakers' decisions. Sign up here. https://www.reuters.com/world/americas/brazils-2024-growth-seen-36-fiscal-target-met-says-finance-minister-2025-01-07/