2025-12-09 15:40

MEXICO CITY, Dec 9 (Reuters) - Mexico's annual inflation rate accelerated in November, landing slightly above market expectations, official data showed on Tuesday, and the central bank's deputy governor flagged possible new inflation risks for the coming year. Consumer prices rose 3.80% in the year through November, according to national statistics agency INEGI, up from 3.57% the previous month. Economists in a Reuters poll expected a 3.7% increase. Sign up here. "The increase in inflation for goods resumed with greater force than expected," economists at Banamex said in a note. They also warned of an expected inflation rebound early next year associated with possible tax increases. The inflation rate remained within the central bank's target range of 3% plus or minus a percentage point. In November, the bank cut borrowing costs to 7.25%, the lowest since 2022, but took a more cautious tone. Inflation risks remain tilted to the upside, central bank deputy governor Galia Borja said in a podcast released on Tuesday. She added that potential tax increases, tariff uncertainty and renegotiation of the U.S.-Mexico-Canada (USMCA) trade pact in the new year will call for greater caution from the monetary institution. "Next year ... will present certain additional risks," Borja said. Policymakers pointed to the country's weak economy as a reason behind their latest decision, but raised concerns about sticky core inflation. In November alone, the closely watched core index - which strips out some volatile food and energy prices - rose 0.19%, while the annual rate came in at 4.43%, both above market forecasts. https://www.reuters.com/world/americas/mexicos-inflation-accelerates-more-than-expected-central-bank-notes-further-2025-12-09/

2025-12-09 12:52

Congo's export restrictions cause cobalt hydroxide price surge Cobalt hydroxide payables in China reach 100% of metal price Demand for cobalt hydroxide slows due to high payables SHANGHAI/LONDON, Dec 9 (Reuters) - Prices of cobalt hydroxide used to make chemicals for electric vehicle batteries have risen sharply this year due to cobalt export restrictions from top producer Democratic Republic of Congo, industry sources said. Congo suspended all cobalt exports in February, but then introduced a quota system in October, aiming to boost state revenues and tighten oversight in a country that produces more than 70% of the metal globally, estimated at more than 280,000 metric tons this year. Sign up here. It has set new conditions for exporters, potentially complicating the recently introduced quota system, which sources say is likely to exacerbate shortages and support cobalt hydroxide prices. "Cobalt is currently registering as 2025's top price performer, but this has purely been driven by the introduction of export quotas by Congo which have caused an artificial market tightness, removing 160,000 to 170,000 tons from the market this year," analysts at Macquarie said in a recent note. Cobalt hydroxide is produced in Congo and as a by-product of copper and nickel mining in Indonesia, the two primary global producers. The products are priced as a percentage of the underlying cobalt metal price and known as payables. Sellers of cobalt hydroxide have been raising their prices since Congo first suspended exports in February. Payables for Congo's hydroxide in top consumer China have jumped to 100% of the cobalt metal price currently trading around $24 a lb or $52,900 a ton, up from nine-year lows of around $10 a lb in February. One source said there is some progress on getting exports moving, but that the significant amounts needed by China's electric vehicle battery makers would not arrive until February or March next year. Two industry sources said some firms with cobalt hydroxide to sell were asking for a premium above the cobalt metal price. For hydroxide produced in Indonesia, payables have jumped to 90% from 50% at the start of the year. Three industry sources, who asked not to be named as they are not authorised to speak to media, said demand for cobalt hydroxide slowed this month and that high payables are sidelining buyers. https://www.reuters.com/world/africa/costs-ev-battery-material-cobalt-hydroxide-jump-congo-export-restrictions-2025-12-09/

2025-12-09 12:41

Stock hovering near SPAC's lowest price level since April Current holdings make it third-largest corporate BTC holder Dec 9 (Reuters) - Shares of crypto treasury firm Twenty One Capital plunged on their first day of trading on Tuesday following the completion of the company's merger with a blank-check firm as crypto-related stocks face mounting pressure. The new company, trading under the ticker "XXI" on the NYSE, was last down 19.41% at $11.49. Sign up here. Twenty One is majority-owned by stablecoin giant Tether and crypto exchange Bitfinex, with a minority stake held by Japanese technology investor SoftBank Group (9984.T) , opens new tab. It was formed by merging into blank-check vehicle Cantor Equity Partners in a deal first announced in April. CEO Jack Mallers said that like other bitcoin treasury companies, Twenty One will hold and buy bitcoin, but it also plans to launch products and "utility services" connected to the world's largest cryptocurrency. "Yes, we own a lot of bitcoin. Yes, we're going to acquire as much as we possibly can, but we're also about to launch a ton of business lines and produce profit that's related to bitcoin, and that's a lot of why we created the company in the first place," Mallers said in an interview. The new company holds over 43,500 bitcoins , making it the world's third-largest corporate holder of the cryptocurrency, according to crypto publication The Block. Twenty One's holdings are worth more than $3.97 billion based on bitcoin's last closing price of $91,350.84, according to Reuters' calculations. Cantor Equity is a special purpose acquisition company (SPAC) backed by Cantor Fitzgerald, an investment banking and brokerage firm chaired by Brandon Lutnick, the son of U.S. Secretary of Commerce Howard Lutnick. SPACs merge with privately held startups, offering them an alternative route to go public. Cantor Equity shares had surged as much as 380% for the year in April before paring much of those gains, and are now up just 3.9% year-to-date. Twenty One joins public markets as cryptocurrencies are facing selling pressure, with bitcoin having fallen more than 28% from its record high of $126,223.18 on October 6. "Digital asset treasury" or DAT companies have lost ground amid the broader crypto drawdown, stoking concerns over stress in the niche but fast-growing sector, with focus also on the "mNAV" metric, a company's enterprise value relative to its crypto holdings. "It's becoming harder for DATs to raise capital and we are in an environment now where DATs need to show material differentiation to warrant the mNAV multiples they were trading at earlier in 2025," said John Todaro, senior research analyst at Needham. Buoyed by U.S. President Donald Trump's crypto-friendly stance and inspired by Michael Saylor's Strategy (MSTR.O) , opens new tab, a number of publicly traded companies have started investing in cryptocurrencies in hopes of higher returns. https://www.reuters.com/business/tether-backed-twenty-one-capital-set-slide-trading-debut-2025-12-09/

2025-12-09 12:30

Dec 9 (Reuters) - HF Sinclair (DINO.N) , opens new tab on Tuesday forecast capital expenditure for 2026 at $775 million, a drop of 11% from its estimated spending for this year, as it expects reduced maintenance costs. U.S. refiners have been focusing on maintenance activities after operating at breakneck capacity in 2022 following supply shortages stemming from Russia's invasion of Ukraine. Sign up here. Lower turnarounds and catalysts costs, pegged at $325 million, below the $410 million it forecast for 2025, would lead the company's spending trim. In October, the Dallas, Texas-based independent refiner said it was considering expanding its pipeline systems across the Rocky Mountain and West Coast to bolster fuel supplies in markets including California and Nevada. Increasing West Coast fuel supply would help ease strain on the region as two refineries accounting for about 20% of California's refining capacity close down. Phillips 66 (PSX.N) , opens new tab is winding down its Los Angeles refinery by the end of this year and Valero Energy (VLO.N) , opens new tab plans to shut the Benicia refinery next year. HF Sinclair expects spending at its refining segment for 2026 to be at $225 million, compared to $240 million estimated for this year. The company has seven refineries in the United States with a total oil processing capacity of 678,000 barrels per day. It has invested increasingly on expanding its renewable diesel capacity and has an annual production capacity of 380 million gallons for the biofuel. The company had estimated expected capex spending of $875 million in the current year. https://www.reuters.com/business/energy/hf-sinclair-forecasts-lower-capex-2026-reduced-maintenance-costs-2025-12-09/

2025-12-09 12:02

PARIS, Dec 9 (Reuters) - France will make a decision on its delayed multiannual energy planning law (PPE) before Christmas, the energy ministry said on Tuesday. The PPE is a 10-year framework outlining the country's targets on everything from nuclear and renewable production to climate goals, but political fighting mostly over renewable energy frameworks has caused lengthy delays to its publication. Sign up here. The ministry did not give any indication on what the decision would mean or whether the PPE would be passed by decree or put to a vote. The bill is long awaited by sectors of the renewable industry, which is facing a slowdown in business due to a lack of clarity over future demand and stalled government tenders. While the centre-right and far-right parties in government oppose further development of renewable energy, leftist parties support it. The nuclear sector is also awaiting the PPE as French utility EDF looks to build six nuclear reactors over the coming decades. The PPE will be necessary to enshrine these plans in law and prevent future court challenges. The declaration from the ministry comes after the publication of a report by French grid operator RTE stating that power demand growth is proceeding more slowly than forecast and the French electricity market is facing oversupply. https://www.reuters.com/business/energy/decision-french-energy-planning-bill-expected-by-christmas-2025-12-09/

2025-12-09 11:59

Nvidia shares rise 2% in after-hours trading after Trump's announcement US has concerns over AI chips aiding China's military Trump says same approach will apply to AMD, Intel WASHINGTON, Dec 8 (Reuters) - The United States will allow Nvidia's (NVDA.O) , opens new tab H200 processors, its second-best artificial intelligence chips, to be exported to China and collect a 25% fee on such sales, U.S. President Donald Trump said on Monday. The decision appears to settle a U.S. debate about whether Nvidia and rivals should maintain their global lead in AI chips by selling to China or withhold the exports, though Beijing has told companies not to use U.S. technology, leaving it unclear whether Trump's decision would lead to new sales. Sign up here. Nvidia (NVDA.O) , opens new tab shares rose 2% in after-hours trading after Trump made the announcement on Truth Social, following a 3% rise during the day on a report by Semafor. Trump said in his post that he had informed President Xi Jinping of China, where Nvidia's chips are under government scrutiny, about the move and that he "responded positively." He said the U.S. Commerce Department was finalizing details of the arrangement and the same approach would apply to other AI chip firms such as Advanced Micro Devices (AMD.O) , opens new tab and Intel (INTC.O) , opens new tab. Trump's post said the fee to be paid to the U.S. government was "$25%", and a White House official confirmed he meant 25%, higher than the 15% proposed in August. "We will protect National Security, create American Jobs, and keep America’s lead in AI," Trump wrote on Truth Social. "NVIDIA’s U.S. Customers are already moving forward with their incredible, highly advanced Blackwell chips, and soon, Rubin, neither of which are part of this deal." Trump did not say how many H200 chips would be authorized for shipment or what conditions might apply, only that exports would occur "under conditions that allow for continued strong National Security." Administration officials consider the move a compromise between sending Nvidia's latest Blackwell chips to China, which Trump has declined to allow, and sending China no U.S. chips at all, which officials believe would bolster Huawei's efforts to sell AI chips in China, a person familiar with the matter said. "Offering H200 to approved commercial customers, vetted by the Department of Commerce, strikes a thoughtful balance that is great for America," Nvidia said in a statement. Intel declined to comment. The U.S. Commerce Department, which oversees export controls, and AMD did not respond to requests for comment. A White House official said that the 25% fee would be collected as an import tax from Taiwan, where the chips are made, to the United States, where the chips will undergo a security review by U.S. officials before being exported to China. Asked about the approval on Tuesday, the Chinese foreign ministry said that China believes it should cooperate with the U.S. to achieve mutual benefits. FEARS OF CHIPS STRENGTHENING CHINA'S MILITARY China hawks in Washington are concerned that selling more advanced AI chips to China could help Beijing supercharge its military, fears that had first prompted limits on such exports by the Biden administration. The Trump administration had been considering greenlighting the sale, sources told Reuters last month. Trump said last week he met with Nvidia CEO Jensen Huang and that the executive was aware of where he stood on export controls. "It’s a terrible mistake to trade off national security for advantages in trade," said Eric Hirschhorn, who was a senior Commerce Department official during the Obama administration. "It cuts against the consistent policies of Democratic and Republican administrations alike not to assist China’s military modernization." According to a report released on Sunday by the non-partisan think tank, the Institute for Progress (IFP), the H200 would be almost six times as powerful as the H20, the most advanced AI semiconductor that can legally be exported to China, after the Trump administration reversed its short-lived ban on such sales this year. The Blackwell chip now in use by U.S. AI firms is about 1.5 times faster than H200 chips for training AI systems, the IFP said, and five times faster for inferencing work where AI models are put to use. Nvidia's own research has suggested Blackwell chips are 10 times faster than H200 chips for some tasks. Several Democratic U.S. senators in a statement described Trump's decision as a "colossal economic and national security failure" that would be a boon to China's industry and military. Republican Representative John Moolenaar, who chairs the House China Select Committee, said in a statement to Reuters that China would use the chips to strengthen its military capabilities and surveillance. "Nvidia should be under no illusions - China will rip off its technology, mass-produce it themselves and seek to end Nvidia as a competitor," he said. In recent months, Beijing has cautioned Chinese tech companies against buying chips that Nvidia downgraded to sell to the Chinese market, which are the H20, RTX 6000D and L20, two sources said. George Chen, partner at consultancy The Asia Group, said he expected Chinese regulators to soften their hardline approach to Nvidia following Trump's comments on Xi's reaction, given efforts to improve U.S.-China relations. The H200 was also far more useful to China than the H20, he said. "I expect state media to gradually change their narrative and be more welcoming to Nvidia," he said. Bo Zhengyuan, political analyst at consultancy firm Plenum, said he also believed that Beijing would be more cautious about intervening. "But on a longer horizon, we don’t know how long this window can last. China will not be disturbed by this easing, and it will remain ultra-focused on gaining advanced chip-making capability of its own," he said. China's domestic AI chip companies now include tech giant Huawei Technologies as well as smaller players such as Cambricon (688256.SS) , opens new tab and Moore Threads (688795.SS) , opens new tab. https://www.reuters.com/world/china/us-open-up-exports-nvidia-h200-chips-china-semafor-reports-2025-12-08/