Aurelia Butler

WASHINGTON (Reuters) -U.S. and European Union negotiators failed to reach deals to settle longstanding trade disputes in time for a summit at the White House on Friday, but Washington said it would keep providing some relief from tariffs on steel and aluminum, and both sides said talks would continue.Senior U.S. administration officials said they made significant progress on the trade issues but more work was needed to reach deals on energy subsidies and the steel and aluminum market.U.S. President Joe Biden hosted European Council President Charles Michel and European Commission chief Ursula von der Leyen for a meeting dominated by discussions about the war between Israel and Hamas, and ensuring continued support for Ukraine in its now 600-plus day fight against Russia’s invasion.”We are more united than ever,” the leaders said in a joint U.S.-EU statement that touched on the war in the Middle East, Russia’s war in Ukraine, concerns about China, and pledged continued efforts to strengthen economic security, ensuring secure energy transitions in our economies and reinforcing multilateralism and international cooperation.Biden noted at the start of the meeting that the EU and the U.S. were standing together to support Israel and Ukraine, but would also discuss ways to address “unfairly traded steel and aluminum imports” and talks about critical minerals.”Sometimes we have our differences,” Michel said. “That’s why we are here: to cooperate, to find solutions that work for businesses and workers on both sides of the Atlantic.”Trade negotiators had scrambled on Thursday to avoid the U.S. resuming import tariffs on EU steel and aluminum imposed by then-President Donald Trump in 2018, ultimately agreeing to keep the tariffs at bay while they keep talking.The joint statement said negotiators had made “substantial progress to identify the sources of non-market excess capacity” and find ways to measure the emissions intensity of the steel and aluminum industries.”We look forward to continuing to make progress on these important objectives in the next two months,” it said.A senior U.S. administration official said the U.S. would roll over tariff rate quotes, or TRQs, by the end of the year if more time for talks was needed, adding, “We are committed to providing certainty to our industry and workers and to our EU partners.”The United Steelworkers (USW) International labor union welcomed what it called the Biden administration’s commitment to defending domestic steel and aluminum workers instead of “bowing to outdated thinking on international trade and the EU’s political pressure.”Friday’s move staves off the resumption of the Trump-era tariffs on EU-produced steel and aluminum that the Biden administration had agreed to halt in exchange for a quota system, but it was unclear how long a reprieve would be granted.The Biden administration suspended tariffs on EU steel and aluminum imports on the condition that both sides agree by the end of this month on measures to address overcapacity in non-market economies such as China, and to promote greener steel.A second official said more work was needed to finalize an agreement, but there was no discussion of reinstating – or snapping back – Trump’s “national security” tariffs on steel and aluminum, the official said. “That is not on the table.”Any deal seems far off, with Washington keen that the EU apply the metal tariffs to imports from China and Brussels refusing to do so before a year-long investigation to comply with World Trade Organization rules.Negotiators would keep talking over the next two months, but Washington is already eyeing a two-year extension of the tariff relief, mindful of the challenges of getting a deal done in 2024 given EU elections in early June and U.S. elections in November. The summit also fell short on a deal to lessen the hit on European producers from the U.S. Inflation Reduction Act, which offers consumers tax breaks to buy electric vehicles (EVs) assembled in North America, by allowing critical minerals mined or processed in Europe to qualify for some of the tax credits.The joint statement cited progress toward a “targeted” deal, and said the leaders looked forward to continuing negotiations in the coming weeks.(Reporting Andrea Shalal and Jeff Mason; Additional reporting by Jarrett Renshaw; Editing by Heather Timmons, Jonathan Oatis, Alistair Bell and Marguerita Choy) More

Moody’s last changed its outlook on Britain one year ago, when Truss had spooked markets with unfunded tax pledges, culminating in her resignation.Her replacement as Prime Minister, Rishi Sunak, reversed those policy decisions and pledged to restore Britain’s economic stability and fix her mistakes when he took office last October.”Policy predictability has been restored after heightened volatility last year around the mini-budget,” the ratings agency said, affirming the country’s rating at “Aa3″.”While structural spending pressures and relatively high inflation will pose risks to the government’s ability to fully deliver on its fiscal plans, Moody’s still expects fiscal policy to gradually tighten over the coming years.” British inflation, at 6.7% in the year to September, is the highest of any major advanced economy and last week the International Monetary Fund forecast its economy would grow just 0.5% next year, the weakest in the Group of Seven.The government borrowed 81.7 billion pounds ($99.35 billion) in the first half of the 2023/24 financial year, 15.3 billion pounds more than between April and September 2022, but about 20 billion pounds less than the government forecast in March.Britain’s Office for Budget Responsibility (OBR), which is in charge of the forecasts, said tax revenue had been higher in cash terms due to faster than expected inflation and pay growth.However, finance minister Jeremy Hunt has said the better budget outcome does not allow scope for the tax cuts which many in his Conservative Party want to boost their standings in the wake of recent electoral defeats.Hunt said on Sunday that Britain’s debt servicing costs were likely to rise by 20 billion to 30 billion pounds a year due to higher interest rates, and described the increase in borrowing costs as “clearly not sustainable”.Hunt is due to give a fiscal update on Nov. 22.Standard and Poor’s (NYSE:SPY) had already revised up its outlook for Britain’s sovereign credit rating in April, removing the “negative” label they applied after Truss’s mini-budget.On Friday S&P affirmed its AA rating and stable outlook for Britain.($1 = 0.8224 pounds) More

It raised late on Friday the country’s local and foreign currency long-term issuer ratings to ‘BBB-/A-3’, with a stable outlook, citing stronger budgetary position.The other two agencies, Fitch and Moody’s (NYSE:MCO), rate the country one notch below investment grade. DBRS Morningstar upgraded Greece’s rating to investment grade BBB (low) last month.S&P said it expects budget surplus target to help in paring the country’s government debt, and added that it is cautious about political pressures hindering Greece’s ability to sustain large primary budget surpluses. Greece lost its investment-grade credit rating, which implies a low risk of default, in 2010 when its decade-long debt crisis erupted, forcing it to sign up for international bailouts worth about 260 billion euros ($275.34 billion) to stay afloat.It emerged from the debt crisis in 2018 and was the only country in the eurozone with a “junk” rating.S&P expects “additional structural economic and budgetary reforms, coupled with large EU funds, will support robust economic growth in 2023-2026.” Greece expects economic output to rise 3% in 2024 following a 2.3% expansion this year more than twice the eurozone average. It also projects a 2.1% of GDP primary budget surplus next year on higher investment and strong tourism revenue.The conservative government hopes now that the upgrade will trigger more capital inflows and reduced borrowing cost for the country’s businesses.”In the short and medium term, we expect inflows from index-tracking funds, upgrade of banks assets and more favorable borrowing cost for companies,” a senior finance ministry official told Reuters.Greece’s 10-year government bond yield was at 4.38% on Friday, about 58 basis points below Italy’s equivalent. “I think all the ratings specific news is priced in. It’s trading as investment grade anyway,” Rabobank senior rates strategist Lyn Graham-Taylor told Reuters. ($1 = 0.9443 euros) More

(Reuters) -Shares of mid-sized U.S. banks fell on Friday after a string of earnings reports heightened investor concerns that the boost to lenders from the Federal Reserve’s interest rate hikes was tapering off.Regions Financial (NYSE:RF) shares plummeted over 12% to $14.44 after missing profit estimates, when an industry crisis began following an outflow of deposits that engulfed three banks.The lender said it expects net interest income (NII) in the fourth quarter to decline about 5% from current levels.”We see the entire bank group as inexpensive but, on a relative basis, we would rather invest elsewhere,” Wells Fargo analyst Mike Mayo said about Regions Financial. The headwinds from higher rates could last longer than expected, Mayo added.Regions Financial reported profit of 49 cents per share for the third quarter, missing analysts’ average estimate of 58 cents, according to LSEG data.The lender also missed its estimates on net interest income, credit costs and expenses while share of bad loans increased at a faster pace than expected, R. Scott Siefers, an analyst at Piper Sandler said in a note.The U.S. regional banks have been grappling with tepid performance after the collapse of three lenders in spring this year which sparked deposit outflows leading to earnings being under pressure since then.UNDERWHELMING MARGIN TALK A busy earnings week for banks has highlighted that the Fed’s rate hikes forced several of them to pay higher interest on deposits to stem the migration of customers to alternatives such as money-market funds.That, together with an expected slowdown in loan demand as borrowing costs increase, dampened expectations of NII growth in the fourth quarter.”The higher for longer environment will continue to pressure net interest margins and overall profitability, as well as the risk of certain borrowers who are unable to repay,” said Terry McEvoy, banking analyst at Stephens.Huntington Bancshares (NASDAQ:HBAN)’ stock dipped 3.88%, while Comerica (NYSE:CMA) dropped 8.5%, dragging down the S&P 500 Banks index by over 2%.The KBW Regional Banking index also fell by over 3.50%.Lenders such as Fifth Third Bancorp (NASDAQ:FITB) and Comerica have also forecast a drop in NII.Huntington Bancshares posted an 8% drop in third-quarter profit as interest income declined. While its margins and net interest income are expected to improve throughout 2024, its expenses are also expected to pick up which could weigh on its performance, analysts said. More

Ford (NYSE:F) made its offer over two weeks ago.Here is a look at the top talking points, and how negotiations have progressed more than a month after the strike began, according to UAW President Shawn Fain and the companies: Ford General Motors Stellantis Wages Top offer of Offered about Offered about 23% hike 23% increase. 23% increase. Wage Cut timeline Within the Cut timeline progression to get to top life of the to get to top wage rate to contract, all wage rate to three years senior four years. from eight. employees reach max wage rate. Temporary Wages raised Wages Wages raised workers’ wages to $21/hour. increased to to $20/hour. $21/hour. Cost-of-living- Agreed to Reinstatement Agreed to adjustments reinstate of COLA for reinstate (COLA) cost-of-living senior team cost-of-living allowance. members allowance. starting Year 1 Plant closures The UAW can No agreement The UAW can strike over regarding the strike over plant issue. plant shutdowns. shutdowns. Workers get income protection. Retirement No agreement Company No agreement benefits to restore contributions to restore pre-2007 increased by pre-2007 defined 25% (from 6.4% defined benefit to 8.0% of benefit pension plans. wages) for pension plans. active in-progression team members, regardless of employee contribution. Battery Plants No agreement. Agreed to No agreement. allow workers at joint-venture battery plants to be covered by union contracts. Source: Fain’s statement, company statements More