2025-10-09 14:40
BOGOTA, Oct 9 (Reuters) - Colombia carried out its largest domestic public debt swap in history, for 43.4 trillion pesos ($11.18 billion), the Finance Ministry said on Wednesday night, as part of its debt management strategy amid the country's strained finances. In the transaction, the nation will receive domestic public debt securities (TES) maturing between 2025 and 2050 in exchange for TES maturing between 2029 and 2058, the ministry said in a post on X. Sign up here. The ministry received requests totaling 49.2 trillion pesos ($12.68 billion). The swap will generate fiscal savings of 1.7 trillion pesos ($438 million) this year due to interest, the statement added. This is the seventh domestic public debt swap the government has undertaken this year. ($1= 3,879.80 pesos) https://www.reuters.com/world/americas/colombia-carries-out-largest-domestic-debt-swap-history-112-billion-2025-10-09/
2025-10-09 14:24
Takaichi says must aim to achieve demand-led inflation Recent inflation is still driven by rising raw material costs Takaichi says don't want to ignite excessive yen fall Weak yen has pros and cons, Takaichi says Takichi vows to immediately compile stimulus package TOKYO, Oct 9 (Reuters) - Japan's ruling party chief Sanae Takaichi said on Thursday that the country's central bank is responsible for setting monetary policy but that any decision it makes must align with the government's goal. Recent inflation in Japan has been driven by rising raw material costs rather than solid demand, Takaichi told a television programme when asked about prospects of a near-term interest rate hike by the Bank of Japan. Sign up here. "I believe we should aim to achieve inflation driven by (strong) demand," Takaichi said, signalling her caution against a premature rate hike. "Specific monetary policy means fall under the jurisdiction of the BOJ. But any decision it makes must align with the government's economic policy," said Takaichi, who is known as an advocate of expansionary fiscal and monetary policy. Takaichi's surprise victory in a weekend party leadership race, which puts her on course to become Japan's first female prime minister, has pushed the yen to an eight-month low against the dollar on receding bets of a near-term interest rate hike by the BOJ. "I don't want to trigger excessive yen declines. But in general, there are pros and cons to a weak yen," Takaichi said. While a weak yen serves as a buffer for manufacturers hit by higher U.S. tariffs, it hurts households by pushing up the cost of raw material imports, she said. Takaichi said she will immediately issue an order to compile a package of steps to cushion the economic impact of rising living costs if she is chosen by parliament to become the next prime minister. "We must pass through parliament legislation to cut the gasoline tax and compile a supplementary budget. Otherwise, people will continue to suffer from the rising cost of living, which will hurt consumption, weigh on corporate profits and hurt the economy," she said. Japanese government bond (JGB) yields have risen on the prospect of Takaichi deploying a big spending package that adds to the country's huge debt pile and worsens its already tattered finances. "I've never said that we don't need to be mindful about Japan's fiscal health," though the priority would be to achieve economic growth, Takaichi said. "JGBs are held overwhelmingly by domestic investors. It's the most stable bond market in the world," she said. https://www.reuters.com/world/asia-pacific/japans-takaichi-vows-immediately-compile-stimulus-plan-2025-10-09/
2025-10-09 14:18
MEXICO CITY, Oct 9 (Reuters) - Mexico's annual inflation rate quickened in September at a pace slightly below expectations, official data showed on Thursday, but remained within the central bank's target range of 3% plus or minus a percentage point. Consumer prices in Latin America's second-largest economy rose 3.76% in the year through September, according to national statistics agency INEGI, below the 3.79% increase forecast by economists in a Reuters poll. Consumer prices rose 3.57% in the previous month. Sign up here. The inflation rate remained within the central bank's target range for the third month in a row, bolstering expectations that policymakers would continue to cut interest rates. "Current conditions support our expectation of a Banxico benchmark rate of 7.00% at year-end and 6.50% in 2026," analysts at the brokerage of local bank Banorte said in a note. Mexico's central bank, also known as Banxico, lowered borrowing costs last month for the 10th consecutive time, with its key interest rate reaching its lowest level since 2022 at 7.5%. Consumer prices rose 0.23% in September on a monthly basis, according to non-seasonally adjusted figures, slightly below market forecasts. "The monthly increase was mainly due to the sharp seasonal rise in education prices, which recorded the largest monthly increase since 2008," Citi's Banamex said in a note. Meanwhile, the closely watched core index, which strips out some volatile food and energy prices, increased 0.33%, compared with expectations of a 0.32% increase. Sticky core inflation continues to be a concern that could shape future Banxico decisions, according to analysts, while policymakers also closely monitor ongoing global trade tensions and sluggish economic growth in the Latin American country. https://www.reuters.com/world/americas/mexicos-annual-inflation-rises-september-remains-within-target-range-2025-10-09/
2025-10-09 13:51
New York Fed chief sees no risk of imminent recession Fed cut rates last month to balance inflation, job market risks Williams emphasizes central bank's independence amid political pressure Oct 9 (Reuters) - New York Federal Reserve President John Williams backs more interest rate cuts this year given the risk of a further slowdown in the labor market, according to an interview published by the New York Times on Thursday. Williams, the Fed vice chair and a permanent voting member of the U.S. central bank's rate-setting Federal Open Market Committee, added, however, that the current labor market slowdown did not point to an imminent recession. Sign up here. "My own view is that, yes, we would have lower rates this year, but we'll have to see exactly what that means," Williams told the newspaper. When asked if he anticipated two more 25-basis-point cuts to the Fed's policy rate, currently set in the 4.00%-4.25% range, Williams said, "when I approach future meetings, if we get information that is broadly consistent with my outlook - which is for inflation to move up a bit to around 3% and for the unemployment rate to gradually move up a little bit - then I think the path for policy should evolve the way we expect." Williams noted that the Fed is trying to balance policy to lower inflation, which remains above the central bank's 2% target, while at the same time offering support for a job market that's exhibiting signs of weakness. With the current stance of monetary policy, "I do feel like we are well-positioned in terms of having policy that's modestly restrictive and that is helping us get to 2% inflation on a sustained basis." Williams, however, added that it would be very damaging to the economy and the Fed's credibility if inflation were allowed to go well above the 2% level without the central bank taking steps to lower it. "But we need to do it in a way that does our best to minimize the risk of the labor market cooling more sharply." The U.S. central bank cut its policy rate by a quarter of a percentage point at its September 16-17 meeting, a move Fed Chair Jerome Powell and others characterized as a way to leave policy tight enough to still restrain the economy and put downward pressure on inflation, while offering some support for the job market. TARIFFS' IMPACT ON INFLATION LESS THAN EXPECTED Williams' comments are in line with the minutes of the September 16-17 meeting that were published on Wednesday. According to the minutes, Fed officials last month agreed that risks to the U.S. job market had increased enough to warrant a rate cut, but they remained wary of high inflation amid a debate within the central bank over how much borrowing costs were weighing on the economy. The Fed's next policy meeting is slated for October 28-29, with another quarter-percentage-point rate cut anticipated by financial markets. In his interview with the New York Times, Williams said President Donald Trump's trade tariffs were not putting as much upward pressure on inflation as many observers had expected. "Tariffs have boosted inflation by maybe a quarter of a percentage point, up to a half point, in terms of the price level," he said, adding that "underlying inflation seems to be moving gradually lower toward 2%." "I don't see any signs of second-round effects or factors that could be amplifying the effects of tariffs on inflation," Williams added. He also noted that a changing economy is taking some pressure off of inflation. "I think there's more downside risks to the labor market and employment, and that is something that takes some of the upside risk off of inflation." Williams also said he cared deeply about the independence of the Fed, which has come under intense pressure from the White House this year to deliver deep rate cuts. President Donald Trump also has attempted to remove Fed Governor Lisa Cook from her position. https://www.reuters.com/business/feds-williams-backs-more-rate-cuts-this-year-due-labor-market-slowdown-risks-he-2025-10-09/
2025-10-09 12:49
Oct 9 (Reuters) - ARM Energy Holdings said on Thursday it has reached a final investment decision on its $2.3 billion Mustang Express Pipeline project in Texas, along with its partner Pacific Investment Management Company. ARM, an energy marketing firm, said the project benefits from a long-term agreement with Sempra (SRE.N) , opens new tab for shipment of natural gas for its Port Arthur LNG Phase 2 project, which recently achieved its own final investment decision. Sign up here. Earlier this month, Sempra said it would sell a 45% stake in its infrastructure unit for $10 billion, and has approved a $14 billion expansion of Port Arthur LNG project in Texas. The U.S. is the world's top LNG exporter with total capacity expected to reach 115 million MTPA this year, according to the country's Energy Information Administration. The industry has enjoyed strong global demand and policy support from President Donald Trump, who returned to office in January promising to unleash U.S. energy. He also reversed a freeze on new export permits. The pipelines, which will be constructed and operated by ARM, will have a total capacity of 2.5 billion cubic feet per day (bcf/d) and are expected to be completed in late 2028 or early 2029. The 236-mile pipeline will include three segments - Mustang Mainline, Cougar lateral and the Golden triangle where the mainline will connect Katy Hub to Port Arthur. https://www.reuters.com/business/energy/arm-energy-invest-23-billion-mustang-express-pipeline-texas-2025-10-09/
2025-10-09 12:38
SAO PAULO/BRASILIA, Oct 9 (Reuters) - Brazil's government is weighing alternatives to shore up the federal budget, which could involve tweaking tax rates, after Congress killed a measure deemed crucial to hitting its fiscal targets, Finance Minister Fernando Haddad said on Thursday. The government had expected a positive fiscal impact of 14.8 billion reais ($2.8 billion) this year and 36.2 billion reais in 2026 from the proposed changes to taxation of financial assets that expired on Wednesday without reaching a vote. Sign up here. Those figures, combining fresh revenue and spending limits, were seen as key to ensuring the government meets its goal of erasing its primary deficit this year and generating a primary surplus equal to 0.25% of gross domestic product in 2026. Speaking to reporters, Haddad hinted the government could turn to tax increases that would depend only on President Luiz Inacio Lula da Silva. Senator Randolfe Rodrigues, head of the government's coalition in Congress, said on Wednesday that a change to the IOF financial transactions tax was an option. The government's changes to the IOF tax earlier this year, including an initial proposal to impose a higher rate on funds invested abroad, sent shudders through financial markets and triggered a drawn-out fight with Congress. Brazil's Supreme Court has ruled that the president has the authority to change certain tax rates, Haddad said, "and that gives us comfort to reach the end of the year." Haddad also noted that talks with Lula over new measures always involve several alternatives. "We have time, and we're going to use it to carefully evaluate each option," he said. GOVERNMENT TO DISCUSS ISSUE NEXT WEEK Later on Thursday, the Finance Ministry announced Haddad would no longer travel to Washington next week for meetings of the International Monetary Fund and the G20 so he could attend to engagements at home. Some taxes in Latin America's largest economy are considered regulatory in nature and can therefore be changed unilaterally by presidential decree, such as the IOF, as well as import and industrialized products taxes. Earlier on Thursday, President Lula said in an interview with a local radio station that he had asked his team not to worry about a setback in Congress. He said next week the government will discuss how the financial system, especially fintechs, can "pay what it owes." After intense backlash to raising the IOF rate this year, Lula's leftist government watered down the increase, which was implemented with the backing of the Supreme Court. To preserve the fiscal gain it had initially sought, it introduced the proposed investment tax changes that Congress failed to vote on. "If the measure is rejected or loses validity, it's natural for the IOF to return to the table as an alternative. We have to close the gap," Senator Rodrigues said on Wednesday. The main source of additional revenue in the rejected measure came from limiting how companies can use tax credits. But the proposal, which changed the taxation system for financial investments starting next year, also increased charges this year on digital banks, payment institutions, and a popular form of shareholder remuneration in Brazil known as "interest on equity". The government had also proposed raising taxes on online betting firms, but later agreed to drop that provision in an effort to secure passage of the measure. On the spending side, the proposal included a program aimed at keeping students in high school in constitutionally mandated education spending and tightened rules for sickness benefits and payments to fishermen during environmental fishing bans. https://www.reuters.com/world/americas/brazil-will-take-time-evaluate-alternatives-budget-haddad-says-2025-10-09/
