Aurelia Butler

NEW YORK (Reuters) -Procter & Gamble Co is ending all new capital investments in Russia and “significantly reducing” its portfolio to focus on basic hygiene, health and personal care items, CEO Jon Moeller said in a letter to employees posted on its website on Monday. Big investors such as New York State’s pension fund are telling companies they should consider pausing operations in Russia as Russia invades neighboring Ukraine.Cincinnati, Ohio-based P&G is also suspending all media, advertising and promotional activity, Moeller said in the post. The company said on its website that its Russian division makes Tide detergent, Pampers diapers and Gillette razors.P&G has 2,500 direct employees in Russia and 500 in Ukraine, according to a spokesperson. Moeller said in the blog post that the company “proactively suspended” operations in Ukraine and is providing evacuation support, financial assistance, food and shelter to help employees. P&G’s business in Russia and Ukraine accounts for less than 2% of the company’s global sales, a spokesperson said. P&G had $76.1 billion in global net sales in its last fiscal year. More

BRASILIA (Reuters) -Brazilian President Jair Bolsonaro on Monday threw his weight behind measures to tamp down domestic fuel prices after the Ukraine conflict sent oil prices to their highest levels since 2008, adding to pressure on state-run oil company Petrobras.A government official told Reuters on condition of anonymity that the Bolsonaro administration is studying a fuel subsidy program. The economy ministry is against such a measure, the source said, but is not involved in deciding the pricing policy of Petroleo Brasileiro SA, as the state firm is officially known.The mines and energy ministry said its staff was meeting with presidential aides and economy ministry officials later on Monday to discuss what can be done about fuel prices.The economy ministry declined to comment on potential fuel subsidies. Petrobras and the president’s office did not immediately respond to requests for comment.Russia’s invasion of Ukraine, which Moscow calls a “special operation,” has sent global crude prices soaring, adding to double-digit inflation in Latin America’s largest economy ahead of a presidential election in October.Petrobras shares fell almost 8% in Sao Paulo, as the benchmark stock index slid around 3%.In a radio interview earlier on Monday, Bolsonaro called for the end of a fuel pricing policy in which Petrobras, which holds about 80% of Brazil’s refining capacity, aims for local parity with global prices.Bolsonaro called the rules whereby Petrobras sets local fuel prices based on international energy and currency markets “wrong laws designed a long time ago that cannot continue.” Last week, he said that Petrobras, which in 2021 smashed its all-time record for annual profit and dividend payouts, should reduce its profit to soften the blow of soaring oil prices.LEADERSHIP CHANGEBolsonaro’s criticism adds to pressure on Petrobras, where minority shareholders have pressed for a free hand in setting fuel prices. The company racked up huge losses under previous governments when forced to import and sell fuel at a discount.Over the weekend, Brazil’s government appointed former Petrobras executive Rodolfo Landim to chair the oil producer’s board, replacing Admiral Eduardo Bacellar Leal Ferreira who told Reuters on Saturday that he planned to step down as chairman of the company “to spend more time with my family.”The pressure to hold prices down was a factor in Ferreira’s decision to step down, two people close to pricing discussions told Reuters. Petrobras was planning to seek government approval this week to raise prices at its Brazil refineries, the people said.Brazilian newspaper O Estado de S.Paulo was the first to report on Monday that the government was mulling fuel subsidies, saying that a plan to compensate Petrobras for keeping down wholesale prices could be announced this week. The newspaper, citing unnamed participants in the discussions, reported that dividends from Petrobras could be used to fund the subsidies. Proposals to subsidize fuel prices with government funds have met resistance from the economy ministry, which sees little benefit from a subsidy program that could threaten compliance with key fiscal rules.Brent crude briefly hit $139.13 a barrel and U.S. West Texas Intermediate (WTI) rose to $130.50 on Monday, their highest levels since July 2008, as the United States and European allies eyed a Russian oil import ban and prospects for a return of Iranian crude to the global market dimmed. More

BUENOS AIRES (Reuters) – Argentine bonds fell on Monday as a new $45 billion deal with the International Monetary Fund (IMF) started to move through Congress, with the crisis in Ukraine hitting investor sentiment as well as doubts about the country’s economic outlook.Argentina agreed on a 30-month extended fund facility (EFF) with the IMF late last week, replacing a failed 2018 program, which pushes repayments back until 2026-2034. It needs approval from the IMF board and Argentina’s Congress.Economy Minister Martin Guzman addressed lawmakers on Monday, warning that blocking the bill would be “destabilizing” for Argentina and lead to default to the IMF.”It would generate a situation of deep exchange rate stress with inflationary and negative consequences on economic activity, employment and poverty,” he said.Opposition lawmakers have indicated they will support part of the bill to refinance the debt, though have threatened to vote against the economic plan. It is unclear whether that would be acceptable to the IMF, which wants broad support for the deal.”We have a point of agreement, not to push the country into default,” an opposition legislator told Reuters, referring to the center-right opposition coalition. He asked not to be named.”We also agree on endorsing the refinancing of the debt with the IMF but we don’t endorse the economic program.”Most analysts still expect Congress to approve the bill despite the pushback, which would help Argentina avert a default on billions of dollars of repayments to the IMF due this year amid soaring inflation and low reserve levels.However, bonds have dropped steadily since late last week, with Russia’s invasion of Ukraine compounding investor concerns that the grains-producing country will not be able to meet the economic targets from the deal and revive its embattled economy.The South American country’s bonds were down on average 1.2%, with some bonds like the Bonar 2030 30 cents on the dollar, a reflection that many investors are pricing in a future default.”Investors first want to see that the economic goals can be met. Then we’ll see about bond prices recovering,” said Antonio Aracre, an analyst at Syngenta, citing Argentina’s mottled history of some 22 IMF bailouts.Local brokerage StoneX said in a note that capital outflows from emerging market funds had also impacted Argentine debt, “nullifying the positive effect of the IMF staff agreement”.’LIGHT DEAL’ Barclays (LON:BARC) said in a note that the agreement should help reduce pressure on parallel currency exchange rates, where dollars are around twice as expensive as the official rate, and overall uncertainty about policy-making.”But it is not an inflation stabilization plan, and is unlikely to deliver reserves accumulation,” it added.Delphos Investment said that the deal would help lay the foundations for a gradual process of fiscal consolidation and accumulation of reserves, though added it was “not very ambitious” in terms of more lasting structural changes.”Now we know the details of the agreement with the IMF, there is little doubts that it is a light deal. Nonetheless, it will not be easy to meet the terms of the agreement,” said Roberto Geretto of local investment firm Fundcorp.The deal comes with an economic plan that sets out targets for growth, slowly lowering inflation, moving towards positive interest rates, building up foreign currency reserves and cutting central bank funding to the Treasury.”There are reforms that are intended to improve economic growth and reforms that are intended to improve fiscal solvency,” said Daniel Artana at the FIEL Foundation.”The government has not advanced on either of the two fronts, beyond the fact that it has made a commitment to reduce subsidies for electricity and gas rates.”^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^GRAPHIC-Argentina: Economic Targets https://tmsnrt.rs/3sG3w77GRAPHIC-Argentina’s USD bond prices (Interactive version) https://tmsnrt.rs/3FzHvdHGRAPHIC-Argentina’s USD bond prices https://tmsnrt.rs/3fz89ZsBREAKINGVIEWS-Argentina and the IMF: Hope trumps experience Argentina agrees $45 bln IMF debt deal that targets energy subsidies ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ > More