2025-09-18 16:25

SAO PAULO, Sept 18 (Reuters) - Brazilian cosmetics maker Natura (NATU3.SA) , opens new tab said on Thursday it has agreed to sell its Avon International unit to holding firm Regent, ending a long period of uncertainty after announcing last year it was weighing alternatives for the business arm. The sale of the unit, which aggregates Avon's businesses outside Natura's key Latin American market, sent Sao Paulo-traded shares in the company up more than 13%. Sign up here. Natura has been carrying out divestitures as part of a broader strategy to simplify its structure, integrate business units and focus on Latin America, after struggling with profitability in recent years. The company had previously sold the Aesop , opens new tab and The Body Shop brands, and earlier this week announced a deal to sell Avon's businesses in Central American countries to Grupo PDC. The sale of Avon International to an acquisition vehicle affiliated with Regent includes operations in Europe, Africa and Asia, Natura said in a statement. It does not comprise Avon's Russian business, which remains earmarked as "held for sale," nor its operations in Latin America, which are "at the core of Natura's strategic priorities," the cosmetics maker said. Avon's U.S. business, which was never owned by Natura, is also not a part of the deal. Natura will receive a nominal consideration of 1.00 pound ($1.36) at closing, according to the company, followed by contingent payments based on future results and certain liquidity events limited to 60 million pounds. Natura first said last year it was "weighing alternatives" for Avon International, which had been posting lower margins than the group's Latin American operations. In August it reclassified the unit as an "asset for sale." Analysts at Santander said the move should have positive implications for Natura, as it reduces concerns of additional cash injection requirements to sustain Avon's operations. "Avon International has been a cash-burning unit," they noted. ($1 = 0.7343 pounds) https://www.reuters.com/world/americas/brazils-natura-enters-agreement-sell-avon-international-2025-09-18/

2025-09-18 15:51

Katz has served as US Treasury's point person on US-China talks Bessent wants IMF to end 'mission creep' focus on stability mission Katz served as Treasury adviser on international policy during first Trump term First deputy managing director has traditionally been an American WASHINGTON, Sept 18 (Reuters) - The International Monetary Fund managing director Kristalina Georgieva proposed on Thursday that Dan Katz, U.S. Treasury Secretary Scott Bessent's chief of staff and point person on China, be appointed to fill the fund's No. 2 post, the IMF said in a statement. The move places a key Trump administration insider into an influential position within the global crisis lender as Bessent calls on the IMF to abandon climate and gender projects and focus solely on its core financial stability mission while taking a tougher stance on China's "distortive" economic practices. Sign up here. Katz, who would have a key role in developing IMF policies and lending negotiations, served as the principal adviser to Bessent on a wide range of domestic and international matters, the IMF said, including a new U.S.-Ukraine economic partnership and on negotiations with China. In nominating Katz to be first deputy managing director, IMF managing director Kristalina Georgieva said: "Dan is known to his colleagues for his passion for policy work, particularly the intersection of economic policy and international relations. He is highly respected for his solution-oriented approach, collaborative leadership style, and willingness to bring fresh perspectives to difficult issues." Katz replaces Gita Gopinath, who returned to Harvard University at the end of August. His appointment is subject to approval by the IMF's Executive Board. "The IMF plays an indispensable role at the heart of the international monetary system," Katz said in a statement. "I very much look forward to deepening my engagement with the Fund, its staff and the membership." 'MISSION CREEP' Bessent, who controls dominant U.S. shareholdings in the IMF and the World Bank, called in April for the institutions to refocus to their core missions, saying they were suffering from "mission creep" into climate, gender and social equality issues as global imbalances increased. He said the IMF must be a "brutal truth teller" , opens new tab about countries' economic policies and say no to those that fail to implement economic reforms. A Goldman Sachs alumnus, Katz has helped to organize four rounds of in-person negotiations between Bessent and Chinese Vice Premier He Lifeng, including this week's talks on TikTok in Madrid. Katz, who has degrees from Yale University and New York University School of Law, also served as an adviser to the commander of U.S. forces in Kabul, Afghanistan, and at the Treasury Department during President Donald Trump's first term on international affairs, international financial markets and sanctions policy, the IMF said. He consulted for Bessent's hedge fund before being named Bessent's chief of staff in the current Trump term. The first deputy managing director post has traditionally been an American, with the IMF's top job going to a European since its creation at the end of World War Two. During Trump's first term at the height of the COVID-19 pandemic, Georgieva appointed another U.S. Treasury official, Geoffrey Okamoto, an adviser to then-Treasury secretary Steven Mnuchin, to the IMF No 2 post. Okamoto was succeeded by Gopinath, previously the Fund's chief economist, in January 2022. Pierre Yared, vice chairman of the White House Council of Economic Advisers, had also been under consideration for the post. https://www.reuters.com/business/imf-proposes-appointment-bessents-chief-staff-no-2-post-2025-09-18/

2025-09-18 14:53

Sept 18 (Reuters) - Nvidia (NVDA.O) , opens new tab said on Thursday it will invest $5 billion in Intel (INTC.O) , opens new tab, throwing its heft behind the struggling U.S. chip foundry weeks after the White House engineered a deal for the U.S. government to take a massive stake in the company. Nvidia's support represents a new opening for Intel after years of turnaround efforts at the famed U.S. manufacturer failed to pay off. Intel shares climbed more than 25% in early trading. Sign up here. Here are some comments from analysts on this deal. COMMENTS: NANCY TENGLER, CEO AND CIO AT LAFFER TENGLER INVESTMENTS"The private sector can and will solve the INTC technology problem—one way or another—the government has an abysmal record in trying to do so. My guess? This may be the first step of an acquisition or break-up of the company among U.S. chip makers though it is entirely possible the company will remain a shadow of its former self but will survive." STEVE SOSNICK, CHIEF MARKET ANALYST, INTERACTIVE BROKERS, CONNECTICUT "The $5 billion investment is a relatively minor one from NVDA's point of view, but highly significant for INTC. It gives them a direction and a role in AI chip development that it didn't have yesterday. That's why INTC stock is reacting so strongly to the news while causing only a modest rise in NVDA." "The open question, which I hope we'll learn the answer to later, is how much of a role the Administration played in this deal. It was reported that the President would be speaking with (Nvidia CEO) Jensen Huang, so it is probably not a coincidence. It certainly raises the value of the government's investment, but it could call into question the idea of the government picking winners and losers since the deal is not good news for AMD because the INTC/NVDA linkup makes them a more formidable competitor." PIPER SANDLER ANALYSTS "We think this initiative protects NVDA against a core competency that AMD currently holds, as AMD has been steadily gaining share and highlighting the role of its server CPUs in AI infrastructure." "In addition, the partnership extends to personal computing, with NVDA contributing RTX GPU chiplets to INTC's x86 CPUs. We view this development as a positive for NVIDIA and a negative for AMD over the longer-term." GADJO SEVILLA, SENIOR AI AND TECH ANALYST, EMARKETER "This is a massive game changer for Intel and effectively resets its position of AI-laggard into a cog in future AI infrastructure. Nvidia's investment and 4% to 5% ownership of Intel ensures Intel's short-term survival, opens the door for a larger takeover (not likely due to antitrust), and gives Nvidia a direct line to Intel's foundry business for future GPU production." "For Nvidia: The first thing that comes to mind is it reduces regulatory pressure. Nvidia can't be considered a monopolist if it is spreading the wealth to a key competitor. The $5 billion investment is small in terms of Nvidia's scale but it generates goodwill while giving it access to Intel's chip and GPU pipeline resulting in a new generation of Nvidia-Intel chips and AI servers that will likely be in high demand." DAVID WAGNER, HEAD OF EQUITY AND PORTFOLIO MANAGER AT APTUS CAPITAL ADVISORS "This is truly like the Yankees and the Red Sox coming together to end their rivalry - the companies did not like each other whatsoever. It's a massive step in the right direction (utilizing INTC's fab to make chips) for US chip designers, and breathes new life into a poorly run company for decades. " RUSS MOULD, INVESTMENT DIRECTOR AT AJ BELL: "Nvidia's decision to invest in Intel makes sense on several levels. It keeps the Trump presidency sweet as it can demonstrate it is backing American firms on American soil. It also enables the company to diversify supply chain risk." "From Intel's point of view, the cash injection will help. Even if the balance sheet is not heavily geared, with net debt of $29.6 billion against stockholders' equity of $106 billion, adding financial gearing to operational gearing is not ideal, and anything to reduce that will be welcome." "The technological vote of approval from Nvidia will also be welcome, even if the investment does not lead to an immediate manufacturing or foundry deal, thanks to the plan to jointly develop PC and data centre chips." MATT BRITZMAN, SENIOR EQUITY ANALYST, HARGREAVES LANSDOWN: "Nvidia's $5 billion investment in Intel is less about money and more about influence." "For Intel, this is another welcome boost, both financially and strategically, as it leans on Nvidia to stay competitive. But even with the U.S. government and Nvidia on side, it's one step short of a home run for the foundry business, which is struggling to attract the major customers it needs to succeed against the might of TSMC." "For Nvidia, the financial impact is small, but the political upside is big: this move aligns with U.S. policy and could help ease restrictions on selling advanced chips to China. It also signals a shift in industry dynamics, with Arm losing some exclusivity and AMD facing more pressure. In short, this is a strategic alliance with geopolitical undertones, not just a balance-sheet transaction." ROBERT PAVLIK, SENIOR PORTFOLIO MANAGER AT DAKOTA WEALTH "The association with NVIDIA helps a lot, just having access to their intellectual property. For a company that's sort of struggling to develop AI-needed products, it goes a long way and helps sort of stabilize and give some credence to a company that has been under question for some time." "It's a good move. NVIDIA certainly has the cash to do it. So, why not? Why not try to make an investment and see what happens with it?" CHRIS BEAUCHAMP, CHIEF MARKET ANALYST AT IG GROUP, LONDON "It's impressive to see the (share) move and once again from the U.S. government taking a stake in Intel and then Nvidia sprinkling its magic is going to move the share price." "It's a reflection of Nvidia looking to diversify to an extent its investment within the U.S. and as well to gain some brownie points with the U.S. government." "It doesn't change the bigger problem which Nvidia is facing with China, but it keeps it in favor with the U.S. government." "It's a sign that Nvidia has to broaden out its own operation and it's a sign of Intel looking to become far more of a player within the market." IPEK OZKARDESKAYA, SENIOR ANALYST AT SWISSQUOTE BANK "What Intel needs right now is a viable model and to make sure that clients are interested in this product. So this agreement from Nvidia to invest as much as $5 billion to somehow co-develop chips for PCs and data centers is fresh news for Intel. "Intel needed a partner and Nvidia is the best partner for a company where investors are mostly in doubt about the future and the company's ability to get back on the seat having lost the AI turn." "For Nvidia, it is possible that this decision is politically backed because what the U.S. government wants is these companies producing chips in the United States and they have also taken a stake in Intel in order to force them to build that Ohio plant, which would be one of the world's biggest chip making plants in the U.S. " https://www.reuters.com/world/asia-pacific/view-nvidias-5-billion-bet-intel-2025-09-18/

2025-09-18 14:09

Repo rate maintained after cut at last meeting Economists had predicted close call Bank has aimed for 3% inflation since July PRETORIA, Sept 18 (Reuters) - South Africa's central bank left its key lending rate at 7% in a tight decision, holding off from easing monetary policy further while it assesses the impact of previous rate cuts. Thursday's policy announcement was the first since the South African Reserve Bank (SARB) said it would aim for the bottom of its 3% to 6% inflation target range rather than the middle, an effort to lock in low inflation. Sign up here. The Monetary Policy Committee was split, with four members preferring no change in the repo rate (ZAREPO=ECI) , opens new tab and two favouring a 25 basis point cut. SARB Governor Lesetja Kganyago said the effects of 125 basis points of rate cuts since September 2024 were still filtering through in Africa's biggest economy. "We want to see how this is affecting the economy, how expectations evolve, and how inflation risks are resolved," Kganyago told a press conference. Economists polled by Reuters had expected a close call on Thursday after annual inflation unexpectedly slowed in August (ZACPIY=ECI) , opens new tab, falling to 3.3% from July's 3.5% reading. Well-contained inflation has allowed the SARB to cut its repo rate three times this year, including at its last meeting in July. Since then, U.S. President Donald Trump imposed a steep 30% tariff on South African goods, but the full effects are yet to be felt. The central bank has said U.S. tariffs could cause tens of thousands of job losses in South Africa, though it thinks the overall impact on local inflation and economic growth could be modest. On Thursday the bank said it now expects inflation to average 3.4% this year, marginally higher than a July forecast of 3.3%. It raised its economic growth forecast for this year to 1.2% from 0.9%, reflecting a better-than-expected performance in the second quarter. https://www.reuters.com/world/africa/south-africas-central-bank-keeps-main-interest-rate-unchanged-2025-09-18/

2025-09-18 13:59

SEOUL, Sept 18 (Reuters) - The Bank of Korea plans to expand its forward guidance scheme by offering a dot plot of the likely path of future interest rates to better communicate monetary policy to market participants, Governor Rhee Chang-yong said on Thursday. Such a scheme would expand on the current one, in which Rhee verbally reveals the six board members' conditional views over a three-month horizon at a news conference following each policy rate review. Sign up here. "The Bank of Korea is conducting forward guidance pilot tests," Rhee said in a speech prepared for this year's Camdessus Central Banking Lecture at the International Monetary Fund. "Six Monetary Policy Board members, excluding myself, then indicate their views on the rate path for the next year using dots," Rhee said, adding that the graphical paths were currently for internal use only. Once adopted, the move would be a major change in how the bank produces and communicates policy, as part of a wider push to improve transparency and boost public understanding of its actions. On Thursday, the bank explained that the internal pilot system also allows the six board members to plot two to three dots per horizon to indicate probabilistic rate views. Rhee expects to develop this initiative further to make it "an effective channel for monetary policy communication", he said. At its August 28 meeting, the BOK voted 6-1 to keep unchanged its benchmark interest rate (KROCRT=ECI) , opens new tab at 2.50%, in line with expectations. https://www.reuters.com/world/asia-pacific/skorea-cbank-expand-forward-guidance-policy-rate-path-2025-09-18/

2025-09-18 12:48

Putin says tax hike on wealthy possible Finance Ministry unveils measure to ensure reserve replenishment Ministry says the measure will boost resilience to sanctions Draft budget to be submitted to parliament on September 29 MOSCOW, Sept 18 (Reuters) - Russian President Vladimir Putin signalled on Thursday that he is open to raising certain taxes, especially on the wealthy, as the government struggles to make ends meet in the fourth year of the war in Ukraine. The draft budget is expected to be submitted to parliament on September 29. Sources told Reuters that the government was considering raising the rate of value-added tax to keep the budget deficit in check and maintain reserves. Sign up here. Meeting with leaders of parliamentary factions, Putin said that measures such as a luxury tax or a higher tax on stock dividends could be "reasonable" during the war, but he urged caution. He did not mention other taxes. "In the United States, I don’t want to politicize this, during the Vietnam War and the Korean War, that’s exactly what they did. They raised taxes specifically on people with high incomes," Putin said. Russia introduced a progressive income tax in 2021 and raised the rate for high earners this year. The Finance Ministry has previously said that increasing taxes on dividends would scare off stock investors. Putin pledged no major changes to the tax system before 2030 following the tax hikes introduced in 2025. He asked the government on September 5 to increase revenues through higher productivity, not taxes. Potential tax hikes may come with a new measure, announced also on Thursday, aimed at shielding the state budget from oil price fluctuations and Western sanctions targeting Russian energy exports. RUSSIA'S OIL AND GAS SALES ARE EXPECTED TO FALL SHARPLY Under the new initiative, set to be implemented next year, the government will lower the cut-off price for oil above which oil revenues go into the fiscal reserve fund to try to ensure that the fund is sufficiently replenished. "To make our finances more resilient, we are proposing a reduction in dependence on various constraints, whether price-related or volume-related, in the budget’s reliance on oil and gas revenues," Finance Minister Anton Siluanov said at an annual financial forum. Russia's state oil and gas sales in September are set to fall , opens new tab by around 23% from a year earlier on lower prices and a stronger rouble, according to Reuters' calculations. Putin, who met key cabinet members this week to discuss the budget, expressed displeasure at the slow pace of economic growth, which is expected to slow to about 1% from 4.3% last year. Siluanov has been seeking to restore the oil price mechanism, known as the "budget rule", which was abandoned after the start of the war in Ukraine, although Russian media reported that he had pushed for a bigger reduction in the cut-off price. Under the rule, the taxes resulting from when the price exceeds the agreed cut-off price go to the fiscal reserve fund, while the rest of the income is used to cover budget expenses. When the price falls below the cut-off level, the reserves are used to cover the resulting shortfall. MEASURE WILL STRENGTHEN RUSSIA'S BUDGET, SAYS SILUANOV If the rule, first introduced by Siluanov's predecessor Alexei Kudrin in 2004, is not in place, the budget can become more vulnerable when the oil price falls. Siluanov said the new measure would help bring the share of energy revenues in the state budget down to 22% from about 25% in the first eight months of 2025, making the budget more "muscular". The fiscal reserves created under the budget rule carried Russia through several downturns and helped it withstand Western sanctions. Siluanov said the cut-off price would be lowered by $1 every year to bring it to $55 per barrel in 2030. The cut-off price is currently at $60 per barrel. The fiscal reserve fund, which can be used to cover the budget deficit, currently has about 4 trillion roubles ($48.25 billion) in it. The government this year plans to tap the fund for 447 billion roubles ($5.39 billion) to cover part of the budget deficit, which is expected to exceed 1.7% of GDP. The 2026 draft budget set the average price of Urals crude at $59 per barrel, Siluanov said, implying that the fiscal reserves would not be replenished at the same cut-off price. ($1 = 82.9000 roubles) https://www.reuters.com/business/energy/russia-announces-budget-changes-aimed-reducing-oil-revenue-dependency-2025-09-18/