2025-06-10 19:54

SAO PAULO, June 10 (Reuters) - The chief executives of some of Brazil's largest banks on Tuesday expressed concerns over government plans to raise taxes to meet the federal fiscal target, advocating instead for a review of public spending. The proposed fiscal measures, which President Luiz Inacio Lula da Silva has yet to formally receive, include higher taxes on online betting, private credit instruments and financial institutions, while trimming a tax hike on the IOF financial transaction tax. Sign up here. The government raised the IOF tax last month by decree, sparking backlash from Congress and the market. Roberto Sallouti, CEO of investment bank BTG Pactual , said at an event hosted by banking federation Febraban in Sao Paulo that focusing on spending efficiency would be preferable to tax increases, which he argued would harm economic growth. "Isn't it time to seek greater efficiency in Brazil's public budget spending?" Sallouti said, warning that increasing taxes would increase the cost of doing business in the nation. Lula's administration has so far avoided putting spending cuts on the agenda and defended allocations toward sweeping benefits programs. Marcelo Noronha, CEO of lender Bradesco , told the same panel that fiscal balance should be achieved through expenditure cuts, not revenue increases, and called for dialogue with policymakers. Santander Brasil CEO Mario Leao acknowledged the difficulty of such decisions but stressed their necessity. "No one wakes up wanting to pay more in taxes, no one wakes up wanting to manage spending proactively, but these are agendas that Brazil has to face," Leao said. https://www.reuters.com/world/americas/brazil-bank-chiefs-balk-tax-hike-proposal-urge-spending-review-2025-06-10/

2025-06-10 19:39

GENEVA, June 10 (Reuters) - Several areas south of Sudan's capital Khartoum are at risk of famine, the World Food Programme said on Tuesday, with need on the ground outstripping resources amidst a food aid funding shortfall for war-ravaged Sudanese regions. "The level of hunger and destitution and desperation that was found (is) severe and confirmed the risk of famine in those areas," Laurent Bukera, WFP Country Director in Sudan, told reporters in Geneva via video link from Port Sudan. Sign up here. The U.N. food agency said it had reached one million people in seven localities in Khartoum, after gaining access to the capital. Sudan's conflict between the army and rival Rapid Support Forces has displaced millions and split the country into rival zones of control with the RSF still deeply embedded in western Sudan. In late March the army took control of the capital from the RSF -- which had blocked aid access to the city -- following two years of devastating conflict. Jebel Awlia was an example of a locality cited by the WFP where there is severe hunger. The agency said rations of oil and pulses had been reduced in its food distributions, because it faces a funding shortfall of $500 million for emergency food and cash assistance, as donor states reduce humanitarian funding. "Supplements for young children and pregnant and nursing mothers are out of reach because of a lack of resources ... Without urgent support we will not be able to deliver the food package that the Sudanese need," Bukera added. In April the WFP said rations in areas at risk of famine have been reduced to 70% of a standard WFP ration (equal to 2100 kcal per day). The WFP said it is currently assisting four million people across Sudan. War in Sudan erupted in April 2023, sparked by a power struggle between the army and the RSF. https://www.reuters.com/world/africa/several-areas-south-sudan-capital-risk-famine-says-world-food-programme-2025-06-10/

2025-06-10 19:31

MADRID, June 10 (Reuters) - Spain's grid operator, Redeia, said on Tuesday it was gradually restoring power on La Palma after the Canary island suffered a blackout. The power cut on the archipelago's third-smallest island was caused by the failure of a generator at the Los Guinchos power plant in eastern La Palma, the regional government said in a statement, citing utility company Endesa. Sign up here. The outage follows a mass blackout across most of Spain and Portugal on April 28 that caused gridlock across cities and left thousands of people stranded on trains or stuck in elevators. The Canary blackout occurred at 5:30 p.m. (1630 GMT), RTVE reported. Redeia said it had reestablished 6.2 megawatts on La Palma by 7:10 p.m. https://www.reuters.com/business/energy/spain-gradually-restoring-power-after-outage-canaries-la-palma-2025-06-10/

2025-06-10 19:30

Sacks says AI chips are easy to track Trump's policy stresses wide dissemination of AI Sacks says tight regulation could chase customers to China's AI WASHINGTON, June 10 (Reuters) - White House AI czar David Sacks on Tuesday downplayed the risk that coveted American AI chips could be smuggled to bad actors, and expressed concern that regulating U.S. AI too tightly could stifle growth and cede the critical market to China. "We talk about these chips like they could be smuggled in the back of a briefcase. That's not what they look like. These are server racks that are eight feet tall and weigh two tons," Sacks said at the AWS summit in Washington. Sign up here. "They don’t walk out doors. It's very easy to basically verify that they're where they're supposed to be," he said. The comments indicated President Donald Trump's approach to AI could be centered on expanding markets abroad for U.S. AI chips and models. Former President Joe Biden had emphasized policies that countered risks the chips could be diverted to China and used to bolster Beijing's military. “I do worry we’re on a trajectory where fear could overtake opportunity and we end up sort of crippling this wonderful progress that we’re seeing,” Sacks said, citing a raft of bills in state legislatures seeking to regulate AI, as well as permitting challenges facing companies seeking to build the data centers that power AI. Trump rescinded Biden's executive order aimed at promoting competition, protecting consumers and ensuring AI was not used for misinformation. He also rescinded Biden's so-called AI diffusion rule, which capped the amount of American AI computing capacity that some countries were allowed to obtain via U.S. AI chip imports. "We rescinded that Biden diffusion rule, which...made diffusion a bad word. Diffusion of our technology should be a good word," Sacks said. The Trump administration and the United Arab Emirates also announced a plan last month for the Gulf country to build the largest artificial intelligence campus outside the U.S. after Biden in 2023 put in place rules that curbed most AI chip shipments to the region. Taking aim at that regulation, Sacks said, "What play are we giving them? We're basically going to push them into the arms of China." He added that if, in five years, AI chips made by sanctioned Chinese telecoms equipment giant Huawei were everywhere, "that means we lost...We can't let that happen." The need to remove hurdles to U.S. AI innovation is urgent as China has made important advances in its AI models, Sacks said. This year, the Chinese AI app DeepSeek shocked the world with its sophisticated, affordably trained model. "China is not years and years behind us in AI. Maybe they’re three to six months,” said Sacks. "It’s a very close race." The White House later said he was referring to China's AI models, adding that Chinese AI chips are one to two years behind their U.S. counterparts. https://www.reuters.com/world/china/china-is-only-3-6-months-behind-us-ai-trump-official-says-2025-06-10/

2025-06-10 18:47

BRASILIA, June 10 (Reuters) - Brazil's Finance Minister Fernando Haddad said on Tuesday that the government's new fiscal package includes an increase in the income tax rate levied on so-called interest on equity (JCP) payments to 20% from 15%. JCP is a form of shareholder remuneration that allows companies to deduct such payments from their corporate tax base. Sign up here. Speaking to reporters, Haddad said that the decision to include the measure - previously proposed by the government but not voted on by Congress - came at the request of lawmakers. Haddad also confirmed that the fiscal package includes the unification of income tax rates on financial investments at 17.5%, replacing the current sliding scale of 15% to 22.5%, which varies according to the investment's holding period. The new rate would apply to all investments, including stocks and bonds, except those currently exempt from income levy, which would begin to be taxed at 5%, as Haddad had already disclosed on Sunday. The minister, who spoke after returning from a meeting with President Luiz Inacio Lula da Silva, said the additional revenue generated by the package would be used primarily to revise the previously imposed financial operation tax (IOF) hike on forfait operations. The IOF decree, which had been introduced to boost public revenues and also raised the tax on private pension funds and some credit and foreign exchange transactions, triggered strong pushback from both Congress and market players, prompting the government to seek an alternative path as lawmakers threatened to overturn the measure. Haddad defended the new fiscal measures on Tuesday, arguing that they are likely to support the strengthening of the Brazilian currency, pave the way for interest rate cuts, and help ensure compliance with this year's and 2026 fiscal targets. https://www.reuters.com/world/americas/brazils-fiscal-package-include-higher-tax-interest-equity-2025-06-10/

2025-06-10 18:18

June 10 (Reuters) - U.S. Treasury Secretary Scott Bessent has emerged as a possible candidate to succeed Federal Reserve Chair Jerome Powell, Bloomberg News reported on Tuesday, citing people familiar with the matter, a report immediately denied by the White House. Bessent joins a small list of Fed chair candidates that has included Kevin Warsh, a former Fed official whom Trump previously interviewed for Treasury secretary, Bloomberg added. Sign up here. A White House official dismissed the Bloomberg report as false. Trump said on Friday he would name a successor to Powell very soon. Bloomberg, citing two unidentified people familiar with the matter, reported that formal interviews for the job have not begun. Bessent is leading Trump's sweeping global trade overhaul and has a hand in pushing for changes to taxes and regulation. https://www.reuters.com/world/us/bessent-emerges-possible-contender-succeed-feds-powell-bloomberg-reports-2025-06-10/