2025-12-09 11:34

Farmers face $698.6 million shortfall due to corruption scandal Government open to discussions, promises more aid this month Protests disrupt transport, airports and border crossings ATHENS, Dec 9 (Reuters) - Greek farmers continued their nationwide blockades on Tuesday, disrupting traffic along major motorways and intermittently closing border crossings to protest delays in farm aid payments. Farmers have deployed thousands of tractors and trucks in dozens of blockades as they face a shortfall of more than 600 million euros ($698.6 million) in European Union aid and other payments. Sign up here. The delays were prompted by investigations into a corruption scandal in which some farmers, aided by state employees, allegedly faked land ownership to qualify for payouts. Ongoing audits have slowed subsequent disbursements. The delays to funding come just as farmers and stock breeders struggle with an outbreak of sheep pox that has led to hundreds of thousands of sheep and goats being culled. The nationwide demonstration on Tuesday disrupted traffic at several junctures along two highways linking Athens to the northern city of Thessaloniki and the western port of Igoumenitsa to the Turkish border in the east, both key transport routes for trade directed to the Balkan countries. "It's a matter of survival," Yiannis Koukoutsis, a farmer from the central agricultural region of Larissa, told public broadcaster ERT. "We're looking for moves of good faith from the government, including freezing tax debt." The centre-right government of Kyriakos Mitsotakis, under criticism over the scandal, has said it was open to discussions and urged farmers to terminate the blockades. It has acknowledged delays in payments and said farmers will be getting more aid this month before they finally receive a total of 3.7 billion euros this year. But protests continue. In the north, farmers intermittently restricted traffic through the Promachonas and Kipi border crossings with Bulgaria and Turkey and said they aimed to block the port and airport in Thessaloniki this week. On the island of Crete, three flights were cancelled and several others delayed after a group of farmers threw stones at police and stormed onto the runway at the Heraklion airport on Monday. Airport operations resumed around 0800 GMT on Tuesday, Greek aviation officials told Reuters, after farmers left. ($1 = 0.8589 euros) https://www.reuters.com/business/retail-consumer/greeces-heraklion-airport-resumes-flights-after-farmers-end-protest-2025-12-09/

2025-12-09 11:33

PARIS, Dec 9 (Reuters) - France has entered a period of electricity overcapacity due to flagging industrial use and growing renewable and nuclear output, grid operator RTE said on Tuesday, calling for Europe-level action to boost electrification. Power prices in France have fallen to their lowest since mid 2018 after rocketing during the 2022 energy crisis, which caused traditional industry to shutter factories and cut power consumption. Sign up here. RTE said electricity demand growth had followed the slower scenario laid out in its 2023 analysis as weaker economic expansion has led to less power demand compared to the pre-COVID average and a slow rollout of electrification projects. To overcome this overcapacity, decarbonisation and electrification projects like the electric vehicle rollout and hydrogen production need to be implemented more quickly, which will require action on the European level, RTE said in a report. The supply-demand imbalance led to record power exports in 2024, and France is on track to break that record in 2025 after reaching 82 terawatt hours of exports by November, just 7 TWh short of last year's total with a month to go, RTE said. However export capacity is limited by infrastructure constraints, and RTE said overcapacity is likely to require more modulation capacity - the ability to reduce power supply at periods of low demand - at nuclear and renewable plants. Lowering power supply over increased periods means that power producers like nuclear operator EDF would see a hit to their profits as they curtail production, and could also lead to extended maintenance delays during less profitable months. RTE currently has 30 gigawatt hours of grid access rights signed and contracted for heavy industry, including hydrogen, mobility and data centres, which can help mitigate some of the oversupply, the report said. Compared to other countries, France could see greater demand growth by the end of the decade and higher electricity grid utilisation rates, RTE said. https://www.reuters.com/sustainability/climate-energy/french-power-supply-outpacing-demand-electrification-lags-grid-operator-says-2025-12-09/

2025-12-09 11:27

TSX ends up 0.2% at 31,244.37 Materials group rises 2% as silver hits record high Anglo American and Teck Resources approve merger Energy falls 1.1% as oil settles lower Dec 9 (Reuters) - Canada's main stock index advanced on Tuesday, led by metal mining shares, but the move was limited ahead of interest rate decisions by the Bank of Canada and the Federal Reserve. The S&P/TSX Composite Index (.GSPTSE) , opens new tab ended up 74.40 points, or 0.2%, at 31,244.37, edging closer to the record closing high it posted on Thursday. Sign up here. The Bank of Canada is expected to leave its benchmark interest rate on hold at a three-year low of 2.25% on Wednesday, while the Fed is expected to continue its easing campaign. The prospect of further central bank easing and recent increases in precious metal prices are "pretty constructive" for the market, said Stan Wong, portfolio manager at Scotia Wealth Management. Possible shifts next year in central bank policy as well as U.S. midterm elections and a joint review of the United States-Mexico-Canada Agreement on trade could lead to pockets of increased market volatility, Wong said, adding that such bouts of uncertainty could present buying opportunities for investors. The materials group, which includes metal mining shares, rose 2% as the price of silver climbed 4.5% to a record high. Shareholders of Anglo American (AAL.L) , opens new tab and Teck Resources (TECKb.TO) , opens new tab approved a previously announced merger, paving the way for the creation of a copper heavyweight and leaving regulatory approvals as the final hurdle. Teck's shares were up 0.8%. Technology rose 0.3% and heavily weighted financials ended 0.4% higher. Brookfield (BN.TO) , opens new tab and Qai, an artificial intelligence company owned by Qatar's sovereign wealth fund, have formed a $20 billion joint venture to develop artificial intelligence infrastructure in Qatar and select international markets, the two groups said. Shares of Brookfield added 0.5%. Energy was a drag, falling 1.1%, as the price of oil settled 1.1% lower at $58.25 a barrel. Investors were keeping a close eye on peace talks to end Russia's war in Ukraine. Industrials also lost ground, falling 0.9%, and consumer discretionary stocks ended 0.8% lower. https://www.reuters.com/business/tsx-futures-steady-ahead-expected-fed-rate-cut-2025-12-09/

2025-12-09 11:20

ECB backs merging buffers set by national regulators Proposals will be sent to European Commission US, Britain have been more aggressive in deregulation FRANKFURT, Dec 9 (Reuters) - The European Central Bank will propose simplifying rules on capital buffers required of banks, pruning some of the complex regulation put in place after the global financial crisis, two sources familiar with the proposals told Reuters. The list of measures that ECB Vice-President Luis de Guindos will present to reporters on Thursday aims for fewer, rather than lower, requirements for the amount of capital lenders must hold to cushion themselves against potential shocks. Sign up here. That is a more conservative approach than regulators in Britain and the United States have taken recently and may disappoint bankers who had been hoping for more respite. The recommendations, the result of a compromise between different European Union countries, would merge the systemic risk buffer (SyRB) and countercyclical capital buffer (CCyB), two separate capital requirements set by national supervisors, said the two sources. They spoke on condition of anonymity because the matter is still confidential. A spokesperson for the ECB declined to comment. STRONG REGULATION SUPPORTS RATINGS Financial experts said simplification was more than welcome as the current system has become too complex but this should not lead to banks having to hold less capital. "The strong regulation is a key factor supporting the ratings of European banks," said Marco Troiano, a director at Scope Ratings. "The messaging from the ECB has been very consistent so far, that there is room to simplify the framework, but that this should not lead to less capital at a system level. I welcome this approach," he said. The ECB recommendations will next go to the executive European Commission, which shares the power to propose changes to EU legislation with the European Parliament and Council, on which member states sit. Such changes would take years and could reopen long-standing debates over how far Europe should go in loosening regulations designed to shield taxpayers from having to bail out ailing banks. BANKERS ARGUED THE RULES WERE TOO COMPLEX The SyRB and CCyB buffers were introduced by the 27-nation EU as part of a post-crisis overhaul aimed at preventing another banking sector meltdown like that seen in 2007-2008. Bankers complain these rules are too complex and put them at a disadvantage to U.S. peers, particularly at a time when Donald Trump's U.S. administration is leading a drive to deregulate. U.S. regulators on Friday scrapped guidance aimed at curbing leveraged lending, which has helped shift business to lightly regulated private-credit funds. The Bank of England last week cut its estimate of how much capital lenders need to hold – its first reduction since the crisis – in a bid to boost credit and support growth, although it left its countercyclical capital buffer unchanged. The ECB report, capping months of work by a task force on simplifying regulation, will back the idea of cutting down requirements to just two types - those that can be released at times of stress and those that banks must keep at all times. The task force will also propose reviewing rules for small lenders and harmonising the data banks report to supervisors, resolution authorities and statistical offices, aiming to lower compliance costs. NO APPETITE FOR REDUCING OVERALL REQUIREMENTS The SyRB allows national regulators to demand extra capital where they see risks not covered by other requirements. Merging it with the CCyB – which is designed to curb credit booms – would cut the number of requirements without necessarily reducing overall demands. How much capital banks will need under the combined buffer will still depend on national supervisors. A third source familiar with the ECB's thinking said the simplification effort was focused on removing the duplication of rules but there was very limited appetite for reducing overall capital requirements. The SyRB currently ranges from just 0.5% in countries like the Czech Republic and Italy to 7% in Denmark, and can be applied across the board or just to some types of loans, such as real estate. The ECB recommendations reflect a compromise among euro zone authorities but show the lack of consensus in other areas, the sources added. France had pushed for simplifying requirements governing how much capital Europe's seven biggest lenders - four of which are French - must have to absorb losses if they fail. Germany, where regional and smaller lenders still make up nearly half of the total, wanted lighter treatment for those banks and stricter reliance on equity, rather than convertible bonds, for fulfilling some requirements. Neither idea won enough support and will appear only as options in the report. https://www.reuters.com/sustainability/boards-policy-regulation/ecb-backs-simpler-not-looser-bank-rules-sources-say-2025-12-09/

2025-12-09 10:59

SAF production not meeting expected volumes, says IATA's Willie Walsh SAF currently 0.3% of global jet fuel usage, projected 0.7% by 2025 Airlines blame producers for high SAF prices, insufficient production GENEVA, Dec 9 (Reuters) - The global airline industry is likely to miss its targets for green jet fuel use in the coming years, the International Air Transport Association said on Tuesday, blaming fuel producers and regulators for the "disappointing" progress. Sustainable aviation fuel (SAF), made largely from waste or used cooking oil, can cut emissions significantly compared with traditional jet fuel. However, it remains two to five times more expensive than conventional fuel. Sign up here. IATA expects 2.4 million metric tons of SAF to be available in 2026, covering just 0.8% of total fuel consumption. That means the growth of the SAF sector has slowed - production growth doubled between 2024 and 2025, but will likely only grew by 0.5 million metric tons between 2025 and 2026, IATA said. The wider aviation sector committed in 2021 to achieving net-zero emissions by 2050, relying heavily on a gradual switch to SAF. "We're not seeing SAF produced in the volumes we had hoped for and had expected. That is disappointing," the trade group's director general Willie Walsh told journalists. He had previously warned that the 2050 net zero goal could be at risk. Sustainable aviation fuel accounts for about 0.3% of the world's jet fuel use and was projected to reach only 0.7% by 2025, according to IATA data. Experts say production needs to grow quickly for the sector to meet its emissions goals. Airlines have long said that they are willing to buy all of the SAF available, but accuse jet fuel producers of artificially inflating prices and failing to produce enough of the greener fuel. "It's not an issue of price, it's an issue of availability, and they're just not able to get their hands on the SAF that they require to fulfil the ambition that they expressed," Walsh said. IATA's Chief Economist Marie Owens Thomsen added that regulatory mandates introduced by the European Union and Britain have encouraged fuel producers to raise prices on SAF even further, with Walsh adding that the practice is synonymous with price gouging. https://www.reuters.com/sustainability/climate-energy/airlines-warn-green-fuel-goals-risk-supply-falls-short-2025-12-09/

2025-12-09 10:59

Wall Street banks price in fewer Fed rate cuts in 2026 Holding intermediate US debt presents lower carry costs Investors reduce long duration positioning, JP Morgan says Focus is on Fed 'dot plot'; analysts see few changes to forecasts NEW YORK, Dec 8 (Reuters) - Bond investors are positioning for a shallow easing cycle from the Federal Reserve as it gears up for its final policy meeting of 2025, reducing exposure to long-duration Treasuries and rotating into intermediate maturities for juicier returns. Many Wall Street banks have penciled in fewer Fed interest rate cuts in 2026 on lingering inflation concerns and expectations of a more resilient U.S. economy. Sign up here. Against that backdrop, the shift to the so-called belly of the curve - such as U.S. five-year Treasuries - reflects a view that the typical strategy of loading up on long bonds during rate-cutting cycles may not deliver the same payoff this time. The thinking hinges on inflation and the Fed's evolving policy stance. The U.S. central bank's policy-setting Federal Open Market Committee is widely anticipated to lower its benchmark overnight rate by 25 basis points to the 3.50%-3.75% target range at the end of a two-day policy meeting that starts on Tuesday. Investors will also scrutinize the FOMC statement as well as Fed Chair Jerome Powell's post-meeting remarks for signals that the benchmark rate is close to neutral, the level at which monetary policy is neither accommodative nor restrictive, potentially near 3%. The Fed has reduced rates by a quarter of a percentage point at each of its September and October meetings after a nine-month pause. "We are expecting a shallow path of rate cuts, mainly because inflation is still too high and ... that's a concern for a lot of voting (FOMC) members especially for some rotating in next year," said Collin Martin, head of fixed income research and strategy at the Schwab Center for Financial Research. But the labor market is cooling, although not falling off a cliff, Martin said. Barclays sees the Fed delivering two more 25-bp rate cuts, in March and June, while Deutsche Bank sees the Fed on hold in early 2026, but easing again in September under a new and more dovish leadership. HSBC, on the other hand, said the central bank will pause over the next two years after a rate reduction on Wednesday. When the Fed enters a rate-cutting cycle, investors typically extend bond duration, anywhere from 10-year to 30-year U.S. Treasuries. In periods of easing, shorter-dated yields fall, so investors reach further out the curve to lock in higher long-term rates before they decline further. As such, longer-dated debt has traditionally outperformed shorter-duration Treasuries when the Fed is cutting rates. With the inflation rate remaining above the Fed's 2% target, bond investors anticipate a higher neutral rate of possibly 3%. A structurally higher neutral rate creates a floor for yields, analysts said, particularly 10-year Treasuries. If the neutral rate is higher, the upside for long-duration bonds could be capped, making intermediate maturities or the belly of the curve a more attractive hedge against policy uncertainty and inflation persistence, analysts said. DISINFLATION HAS STALLED "We prefer remaining in the belly across the curve. Because of what's being priced in, the markets being positioned on the front end incurs very steep carry costs," said Dhiraj Narula, U.S. rates strategist at HSBC, noting that inflation is being underpriced by the market right now. When markets expect Fed cuts, being long the front end of the curve incurs high daily costs because the market is priced for yields to fall going forward. "The inflation being driven by tariffs has not been quite as severe as markets are expecting, but overall disinflation has stalled closer to 3% than the Fed's 2% target, and that is quite a strong incentive to keep policy at least closer to neutral," Narula said. The long end, on the other hand, presents its own problems. "It's difficult to have confidence on the long end for a variety of factors such as budget and fiscal concerns," said Greg Wilensky, head of U.S. fixed income and a portfolio manager at Janus Henderson Investors. "You also have concerns about Fed independence as well as all the things going on globally. So we prefer to have that duration exposure away from that part of the curve." Wilensky added that bond portfolio duration at his firm is five years and higher. "We were more overweight twos (two-year notes) versus fives (five-year notes) before and now it's more fives and some twos." JP Morgan's latest Treasury Client Survey showed the percentage of investors that are long duration relative to the their benchmark declined by nine percentage points as of December 1. A survey of all clients also showed the fewest net-long positions since November 3. Investors will also focus on the release on Wednesday of Fed policymakers' quarterly economic projections, including policy rate forecasts, also known as the "dot plot." The "dots" from the September meeting, when the Fed resumed its easing cycle with a 25-bp cut, showed a policy rate of 3.6% by the end of this year, 3.4% at the end of 2026, and 3.1% by the conclusion of 2027. Janus Henderson's Wilensky thinks the Fed will stick to the 3.4% policy rate next year in the dot plot, higher than the 3% being priced by the market. https://www.reuters.com/business/us-bond-investors-bet-mild-easing-cycle-stick-middle-curve-2025-12-08/