Inflation has been hovering around 2% most of the past year and fresh data out on Wednesday put price growth right at 2% in December, as falling energy costs offset rising services prices
International News via Reuters:
Euro zone consumers kept their inflation expectations unchanged in November, predicting a steady slowdown in price growth towards the European Central Bank’s 2% target in the coming years, an ECB survey showed on Thursday.
Inflation has been hovering around 2% most of the past year and fresh data out on Wednesday put price growth right at 2% in December, as falling energy costs offset rising services prices.
Consumers across the currency bloc perceived inflation to be somewhat higher – 3.1% in November – but saw it at 2.8% over the next year, 2.5% three years ahead, and 2.2% five years out, the ECB said, based on a survey of 19,000 adults in 11 euro zone countries.
Inflation, tamed by record-quick ECB rate hikes in 2022 and 2023, has been a non-issue in recent months and, if anything, price growth could go even lower given a persistent drag from falling oil and gas prices.
However, the ECB is unlikely to ease policy for now to stop price growth from going too low, as projections see a rebound later, partly on steady economic growth.
Consumers, who are generally more pessimistic than professional forecasters, expect the economy to contract by 1.3% over the coming year, a more pessimistic scenario than October’s 1.1% contraction expectation.
Most forecasters see the euro zone expanding at a rate between 1% and 1.5% this year, after growth of about 1.4% in 2025.
Reporting by Balazs Koranyi; Editing by Alex Richardson
Shell said its chemicals and products segment’s earnings will be dragged down by chemicals margins seen to be falling to $140 a metric ton from $160 in the third quarter as well as a tax adjustment
International News via Reuters:
Shell expects a loss in its chemicals and products business in the fourth quarter due in part to “significantly lower” trading results, the energy giant said in a trading update on Thursday.
It, meanwhile, kept its oil, gas and liquefied natural gas output forecasts within previous guidance.
In addition to the hit from poor trading results, Shell said its chemicals and products segment’s earnings will be dragged down by chemicals margins seen to be falling to $140 a metric ton from $160 in the third quarter as well as a tax adjustment.
Energy majors do not typically divulge detailed results of their trading divisions, saying that publishing such details would reduce their competitive advantage.
Shell’s chemicals and products business last recorded a quarterly loss in the final three months of 2024.
ANALYST PREDICTS HIT TO EARNINGS ESTIMATES
RBC analysts said they expected the revised outlook to weigh on earnings estimates and predicted Shell would exceed its targeted shareholder payout ratio of 40% to 50% of cash flow from operations over 12 months. The ratio stood at 48% in the last quarter.
“The question is whether the board/management team is willing to look beyond a particularly weak quarter and hold the line on the buyback at $3.5 billion, given a strong balance sheet,” RBC said.
Shell shares fell 1.7% by 0814 GMT, underperforming a broader European energy sector that dipped 0.9%.
OUTPUT TO STAY WITHIN PREVIOUS GUIDED RANGE
Fourth-quarter, oil-focused upstream production was expected to remain within the range of previous guidance at about 1.84 million barrels of oil equivalent per day to 1.94 million boed, Shell said. In the third quarter, it produced 1.83 million boed.
Integrated gas production was also forecast to be within previous guidance at 930,000 boed to 970,000 boed, it added. The company produced 934,000 boed in the third quarter.
Shell expects to liquefy between 7.5 million tons and 7.9 million tons of LNG, within a previous forecast of 7.4 million to 8 million tons.
It forecast its indicative refining margin to rise to $14 a barrel in the fourth quarter from $12 in the previous quarter.
Reporting by Shadia Nasralla and Stephanie Kelly;Editing by David Goodman and Joe Bavier
Chief Executive Stuart Machin said a record number of customers shopped with M&S, driving a 5.6% rise in like-for-like food sales in the quarter to December 27 year-on-year and a return to growth online in clothing
International News via Reuters:
Britain’s Marks & Spencer saw strong demand for its upmarket food at Christmas, but shoppers spent less on fashion, home and beauty in its stores, compounding the lingering impact from last year’s cyber hack.
Chief Executive Stuart Machin said a record number of customers shopped with M&S, driving a 5.6% rise in like-for-like food sales in the quarter to December 27 year-on-year and a return to growth online in clothing.
“Food sales were strong and the business continues to outperform, hitting a new market share milestone in the period,” he said on Thursday.
“Fashion, Home & Beauty is getting back on track as we work through the tail end of recovery.”
Sales of clothing in its stores fell, reflecting subdued consumer confidence, milder weather and residual cyber hack-related stock issues, M&S said.
Overall, like-for-like sales in fashion, home and beauty were down 2.9%
Shares in M&S were up 3% in early deals Thursday, paring losses over the last year to 10%.
AJ Bell’s head of markets Dan Coatsworth said M&S had gone back to its old days, where strong food sales offset weak clothing.
“The clothing arm had a poor festive period, and it was telling that M&S held a bigger than usual Sale to help clear stock,” he said.
“It didn’t help that high street footfall was weak in general, meaning that M&S missed on valuable passing trade which typically helps to keep the tills ringing.”
In November, M&S said it would have fully recovered from April’s cyber hack by the end of its year to March 2026, forecasting second-half profit “at least” in line with last year.
It said on Thursday its full-year guidance was unchanged.
Its profit in the first half slumped 55.4%, after the shutdown of its online operation caused fashion, home and beauty sales to slide 16.4%.
Reporting by Paul Sandle and James Davey; Editing by Kate Holton and Sarah Young
The group said it now expected adjusted operating profit at the upper end of the 2.9 billion pounds to 3.1 billion pounds ($3.9 – $4.2 billion) range it forecast in October. It made 3.13 billion pounds in 2024/25
International News via Reuters:
Tesco, Britain’s biggest food retailer, on Thursday forecast full-year profit at the upper end of its guidance as it reported a 3.2% rise in underlying UK sales for the key Christmas trading period, winning market share from rivals.
The group said it now expected adjusted operating profit at the upper end of the 2.9 billion pounds to 3.1 billion pounds ($3.9 – $4.2 billion) range it forecast in October. It made 3.13 billion pounds in 2024/25.
Tesco’s update showed it had continued to outperform the wider UK retail market with a focus on value at a time of subdued consumer confidence, still high inflation and weakening employment.
However, its performance was a little below analysts’ consensus expectations.
Under Ken Murphy, chief executive since 2020, the group is also benefiting from a strategy to improve the quality of its products, increase innovation and enhance customer service.
Industry data published on Tuesday showed Tesco ended 2025 with a UK grocery market share of 28.7%, up 20 basis points on the year and its highest level since March 2015.
Tesco said third quarter to November 22 UK like-for-like sales rose 3.9% having been up 4.6% in its second quarter. Growth then slowed to 3.2% in the six weeks to January 3.
Shares in Tesco have increased 22% over the last year.
“Our investments in value, quality and service drove further gains in customer satisfaction and strong growth in fresh food, contributing to our highest UK market share in over a decade,” said Murphy.
“Competition is as intense as ever and we know value remains a priority for customers,” he said.
Analysts say Tesco’s strategy of matching the prices of discounter Aldi on over 650 items, together its Clubcard loyalty scheme, which provides lower prices for members, is driving growth.
On Monday, Tesco said it was locking the prices of over 3,000 branded products, including Weetabix cereal, Heinz baked beans and PG Tips teabags.
Reporting by James Davey; Editing by Kate Holton and Paul Sandle
Prices unexpectedly fell in month-on-month terms, dropping by 0.6% in December after falling 0.1% in November
International News via Reuters:
British house prices rose by a slower-than-expected 0.3% in the 12 months to December, the weakest annual increase since March 2024, as economic and tax uncertainty overshadowed the market at the end of the year, mortgage lender Halifax said on Thursday.
Prices unexpectedly fell in month-on-month terms, dropping by 0.6% in December after falling 0.1% in November. Economists polled by Reuters had forecast prices would be 1.1% higher than a year earlier and rise 0.2% on the month.
“While December’s monthly fall in prices was likely related to uncertainty in the latter part of the year, this should now be starting to unwind,” Amanda Bryden, head of mortgages at Halifax, said.
Bryden said a combination of lower mortgage rates and modest growth in property prices improved affordability for first-time buyers, with the house price to income ratio at its lowest in over a decade in December.
But Matt Swannell, chief economic advisor to the EY Item Club, a forecasting group, said he did not expect much improvement in affordability as the loosening in the labour market would likely slow wage growth, saying there was also limited scope for big falls in mortgage rates in 2026.
“It looks very likely interest rates will be cut less this year than they were last year,” Swannell said.
The Bank of England cut interest rates to 3.75% from 4% in December, and investors are pricing in one or two more quarter-point cuts this year.
Thursday’s data chimed with rival mortgage lender Nationwide’s measure of house prices, which fell by 0.4% in December alone while its estimate of annual house price growth was the weakest since April 2024.
Halifax expected annual house price growth of 1-3% in 2026.
A Reuters poll of property market experts conducted in December showed British home prices were expected to rise by 2.8% in 2026, speeding up from a full-year rise of 2% in 2025.
House prices in London dropped by 1.3% from 12 months earlier while the strongest growth was reported in Northern Ireland where prices rose by 7.5%, Halifax said.
Reporting by Suban Abdulla; editing by Sarah Young, Kate Holton, Alexandra Hudson
Minneapolis Mayor Jacob Frey adamantly rejected the Trump administration’s assertion that the agent fired in self-defense
International News via Reuters:
A U.S. immigration agent shot and killed a 37-year-old woman in her car in Minneapolis on Wednesday during an immigration enforcement surge, according to local and federal officials, the latest violence in President Donald Trump’s nationwide crackdown on migrants.
Minneapolis Mayor Jacob Frey adamantly rejected the Trump administration’s assertion that the agent fired in self-defense, saying video of the shooting directly contradicted what he called the government’s “garbage narrative.”
“They’re already trying to spin this as an action of self-defense,” a visibly angry Frey said at a press conference. “Having seen the video myself, I want to tell everybody directly – that is bullshit.”
Frey blamed federal immigration agents for sowing chaos in the city, telling ICE: “Get the fuck out of Minneapolis.” But he also urged residents to remain calm, as Democratic leaders in Minnesota, Washington and elsewhere called the ICE operation an unnecessary provocation that resulted in tragedy.
The Minnesota City Council identified the dead woman as Renee Nicole Good and said she was “out caring for her neighbors this morning and her life was taken today at the hands of the federal government.” The council statement also demanded that ICE leave the city immediately.
As night fell, a crowd that appeared thousands strong gathered at the site of the shooting in a residential area of the city’s Central neighborhood, aerial TV images showed. Candles placed at the site lighted up the winter night. Earlier, some protesters were met by heavily armed federal agents wearing gas masks who fired chemical irritants.
Opponents of Trump called for protests in several American cities, raising the risk that the killing could become a national flashpoint over his deployment of federal officers to Democratic-led cities and states.
Kristi Noem, secretary of the Department of Homeland Security, told a press conference that Immigration and Customs Enforcement officers were responding to a vehicle stuck in the snow when they were harassed by a “mob of agitators.”
One of the protesters, later identified as Good, followed agents all day, Noem said. Good blocked their vehicle and refused orders to move out of the way, she said.
“She then proceeded to weaponize her vehicle, and she attempted to run a law enforcement officer over,” Noem told a news conference, saying the car struck the officer.
She characterized that as domestic terrorism and said the act was under investigation by the FBI. State officials said they would launch their own investigation.
Videos of the shooting posted on social media and verified by Reuters raised doubts about the government’s account. One widely shared video showed a maroon Honda SUV partially blocking the road. As the clip begins, the driver inches forward before stopping to let another car pass.
The driver, with the window down, then appears to gesture to an approaching pickup truck to go ahead as well. Instead, the truck stops, and two officers exit and approach the car on foot.
As one of the officers orders the driver out of the SUV and grabs at the door handle, the vehicle reverses briefly, and a third agent moves to the front of the car from the passenger side.
The driver then advances, steering to the right in what appears to be an effort to drive away from the officers. The agent in front of the car pulls his weapon, steps back and fires as the moving car’s left front bumper comes close to his legs.
He fires three shots, with at least one shot after the car’s front bumper had passed him. It was not clear from the video whether the car made contact with the officer, who stayed on his feet throughout the encounter.
After the shots, the car accelerates and crashes into parked cars and a utility pole.
Noem said the officer was experienced and “followed his training.” He was treated by a doctor at a hospital and released.
VICTIM WAS ‘EXTREMELY COMPASSIONATE’
Good’s mother told the Minnesota Star Tribune that her daughter was “extremely compassionate,” and she said Good was not the type of person to confront ICE agents.
“She’s taken care of people all her life,” her mother, Donna Ganger, told the newspaper. “She was loving, forgiving and affectionate.”
The police chief said Good, who was married, was not a target of immigration operations. A witness whose home is nearby told CNN that Good lived in the neighborhood.
The Department of Homeland Security has said it is conducting the “largest DHS operation ever” in Minnesota with 2,000 officers deployed to arrest “fraudsters, murderers, rapists, and gang members.” The surge follows allegations of wide-scale welfare fraud involving Somali immigrants, whom Trump has called “garbage.” Noem said authorities had arrested 1,500 people in recent weeks.
WALZ, TRUMP AT ODDS
Democratic Governor Tim Walz, who ran for U.S. vice president in the 2024 election won by Trump, also rejected the federal government’s account and placed the blame for the shooting on the Trump administration. He told a press conference that he had put the National Guard on alert for possible deployment.
“What we are seeing is the consequences of governance designed to generate fear, headlines and conflict,” Walz said. “…Today that recklessness cost someone their life.”
In a social media post, Trump said the video showed the woman “violently, willfully, and viciously ran over the ICE Officer, who seems to have shot her in self defense.”
The competing narratives highlighted U.S. political polarization, in which Trump’s supporters enthusiastically endorse his version of events while opponents contend his assertions are often provably false.
WITNESSES DESCRIBE SHOOTING
Venus de Mars, a 65-year-old who lives near the site of the shooting, described seeing paramedics perform CPR on a woman collapsed next to a snowbank near the crashed car.
“There’s been lots of ICE activity but nothing like this,” de Mars said. “I’m so angry. I’m so angry, and I feel helpless.”
The fraud allegations date to 2020 against some nonprofit groups in the Somali community that administer childcare and other social services programs.
At least 56 people have pleaded guilty since federal prosecutors started to bring charges in 2022 under Trump’s Democratic predecessor, Joe Biden. Walz announced this week he would not seek a third term as governor, saying he did not have time both to address the fraud scandal and to campaign.
Reporting by Tim Evans in Minneapolis and Renee Hickman in Chicago; Additional reporting by Ted Hesson, Kanishka Singh, Brad Brooks, Heather Schlitz, Jonathan Allen and Ryan Jones; Writing by Ted Hesson, Joseph Ax and Daniel Trotta; Editing by Emily Schmall, Scott Malone, Paul Thomasch, Alistair Bell and Cynthia Osterman
Farmers from the large Coordination Rurale union called for the protests in Paris amid fears the planned free trade agreement with the Mercosur bloc will flood the EU with cheap food imports
International News via Reuters:
French farmers launched a pre-dawn blockade of roads into Paris and several of the city’s landmarks in protest against a sweeping trade deal the European Union hopes soon to sign with South American nations as well as other local grievances.
Farmers from the large Coordination Rurale union called for the protests in Paris amid fears the planned free trade agreement with the Mercosur bloc will flood the EU with cheap food imports, and in anger at the government’s handling of a cattle disease.
“We are between resentment and despair. We have a feeling of abandonment, with Mercosur being an example,” Stephane Pelletier, a senior member of the Coordination Rurale union, told Reuters beneath the Eiffel Tower.
FARMERS’ PROTEST PILES PRESSURE ON MACRON
The farmers overran police checkpoints to enter the city, driving along the Champs Elysees avenue and blocking the road around the Arc de Triomphe monument before dawn on Thursday, while police surrounded them.
Dozens of tractors obstructed highways leading into the capital ahead of the morning rush hour, including the A13 leading into Paris from the western suburbs and Normandy causing 150 km of traffic jams, the transport minister said.
Farmers from the FNSEA and young farmers unions joined them later at the Eiffel Tower in a calm demonstration.
The protest piles yet more pressure on President Emmanuel Macron and his government, a day before EU member states are expected to vote on the trade accord. Without a majority in parliament, any policy misstep by Macron risks a perilous vote of no confidence in the chamber.
MERCOSUR VOTE EXPECTED ON FRIDAY
France has long been a stiff opponent of the trade deal.
Even though Paris has won significant last-minute concessions, the trade deal is a political hot potato for the government, with municipal elections in March and the far right polling strongly ahead of elections to replace Macron in 2027.
“This treaty is still not acceptable,” government spokesperson Maud Bregeon told France Info radio. She refused to be drawn on whether Macron would vote for or against the deal, or abstain.
French Farm Minister Annie Genevard said on Wednesday that, even if EU members backed the accord, France would continue to fight against it in the European Parliament, whose approval will also be required for the agreement to enter into force.
This week the European Commission proposed making 45 billion euros of EU funding available earlier to farmers in the bloc’s next seven-year budget and agreed to cut import duties on some fertilizers in a bid to win over countries wavering in their support of Mercosur.
The deal is backed by countries such as Germany and Spain and the Commission appeared closer to winning Italy’s backing. Rome’s support for the deal would mean the EU had the votes needed to approve the trade accord with or without French support.
A vote on the accord is expected on Friday.
Farmers are also demanding an end to a government policy of culling cows in response to the highly contagious lumpy skin disease, which they consider excessive and instead advocate for vaccination, as well as high costs and excessive regulation.
Police were avoiding clashes with the protesters, said Transport Minister Philippe Tabarot. “Farmers are not our enemies,” he said.
Reporting by Sybille de La Hamaide, Inti Landauro and Camille Raynaud; Editing by Lincoln Feast, Richard Lough and Toby Chopra
8-year-old Luke-Travis King Faries found safe and well
Police have confirmed that 8-year-old Luke-Travis King Faries has been found safe and well following an appeal for the public’s assistance.
The Bermuda Police Service thanking members of the community for their help and for sharing information after the child was reported missing in Sandys Parish yesterday afternoon.
BPS Update 9.42pm:
We greatly appreciate all the messages of support for 8-year-old Luke-Travis King Faries and can now confirm that he has been found safe and well, thanks to the combined efforts of police officers and members of the public.
A previously proposed incentive to retain workers past retirement age may also be pending
Government is encouraging employers to keep older Bermudians in the workforce – and we wait to see if a previously promised incentive for doing so is part of the upcoming budget.
A new policy guide for employers, released by the Ministry of Economy & Labour, once again cites an aging population and declining birth rate.
“These changes are likely to result in difficulties for employers in filling job vacancies”, the document states, and organisations will need to adapt to evolving workforce expectations and skill gaps.
The document provides a guide to implement age-inclusive strategies to address labour shortages, and reduce pressure on the contributory pension fund.
The guide lists advantages for employers that retain and re-engage workers 65 and older – such as access to experienced staff, inter-generational skills transfer, and better economic resilience.
The OECD and the Singapore Ministry of Manpower are also cited, suggesting evidence that employers who manage age diversity benefit from higher productivity and lower turnover.
The guide itself breaks down the considerations and potential actions employers can take – including possible challenges and solutions.
Such actions include… programmes that allow employees to continue after mandatory retirement age on reduced hours or phased retirement; flexible work schedules and part-time roles; and mid-career programmes targeted at workers in their 40s and 50s to keep their skills current.
The guide also recommends removing age-based phrasing, such as “digital native” or “recent graduate”, and focusing on competency and skills.
Jobs can also be redesigned, the guide states, to reduce physical strain and cognitive load, including the use of ergonomic equipment.
The guide acknowledges potential problems, such as workplace resentment over perceived preferential treatment, or the cost of ergonomic changes to a worker’s environment.
A clear rationale for implementing any changes must be communicated to all employees, the guide says, and physical workplace changes should initially focus on low-cost fixes for high-impact roles.
It also remains to be seen if or how a cost-saving incentive that was promised in the 2024 Throne Speech comes to fruition this year.
The November 2024 Throne Speech stated, “…to encourage the retention of those Bermudians over 65 who wish to continue working, the Government will bring legislation to eliminate the employer’s portion of payroll tax for those Bermudian employees so retained.”
The policy guide released today reiterates that “payroll tax does apply to remuneration paid to those over the age of 65.”
However, the recent Pre-Budget Report includes a proposal to reduce or eliminate payroll taxes for employers that retain employees over 65, so we will find out in February if that Throne Speech pledge will be kept – whether in full or in part.
Employment figures already suggest that more workers over 65 are being retained.
More than 3,000 were employed past age 65 in 2024 – a 7% annual increase and the highest number since records began.
More than four fifths of those, or 85.5%, were Bermudians.
Jason Hayward, Minister of Economy & Labour, encourages employers, HR leaders, unions, and industry partners to review the guide released today and incorporate its recommendations.
He says, “building age-inclusive policies today will help secure a more stable and sustainable labour market for the future.”
WATCH our report above; READ the policy guide below…
Press Release from Jason Hayward, Minister of Economy & Labour
The Ministry of Economy and Labour today announced the release of the Retaining Bermudian Workers Aged 65+ Policy Guide for Employers(attached), a comprehensive resource designed to help organisations retain, re-engage, and support Bermudian workers aged 65 and older as part of a broader national strategy to strengthen the workforce.
Bermuda, like many advanced economies, is experiencing significant demographic change. An ageing population, declining birth rate, and acute labour shortages across multiple sectors have increased the urgency for employers to adopt age-inclusive workforce practices. The new guide provides practical tools, drawn from global best practice, to help employers respond effectively.
Minister of Economy and Labour, the Hon. Jason Hayward, JP, MP, emphasised the importance of leveraging the experience and expertise of older Bermudians, stating, “Bermuda’s demographic reality is clear, we are an ageing society with a shrinking labour pool. To maintain a strong economy and ensure continuity across essential services, we must retain the skills, knowledge, and mentorship capacity of our older Bermudian workers. This guide provides employers with the practical strategies they need to do just that.”
The Age Retention Policy Guide outlines a range of evidence-based approaches that employers can implement, including:
Phased retirement and structured re-employment
Flexible and part-time work options
Skills-based hiring and the removal of age-biased recruitment language
Continuous training and mid-career reskilling
Structured mentorship and knowledge transfer programmes
Job redesign and ergonomic adjustments to support productivity
Opportunities for second careers and consulting roles
In addition to strategy guidance, the document includes sample policy wording, implementation steps, and success metrics to help organisations build age-inclusive practices into their broader workforce planning. These tools support better succession planning, lower turnover, and stronger operational resilience.
Minister Hayward, underscoring the essential role older Bermudians play in strengthening the workforce and urging employers to take an active role in addressing the island’s demographic challenges, explained, “Workers aged 65 and older contribute reliability, leadership, institutional knowledge, and long-standing client relationships. Retaining even a small fraction of this talent significantly strengthens our workforce. Age inclusion is not just a social good; it is a strategic economic imperative. Demographic change affects every business in Bermuda, and I strongly encourage employers, HR leaders, unions, and industry partners to review this guide and incorporate its recommendations. Building age-inclusive policies today will help secure a more stable and sustainable labour market for the future.”
The Age Retention Policy Guide for Employers is now available to all organisations and can be accessed through the Ministry of Economy and Labour’s website.
The Ministry of Economy and Labour will continue working with employer groups, unions, and industry stakeholders to support the adoption of age-inclusive practices across the economy.
Brent crude futures were down 40 cents, or 0.7%, to trade at $60.31 a barrel by 11:05 a.m. ET (1605 GMT) after falling to $59.88 a barrel earlier in the session
International News via Reuters:
Oil extended declines on Wednesday as investors digested statements from President Donald Trump that the U.S. had reached a deal to import up to $2 billion worth of Venezuelan crude, a move that would lift supplies to the world’s largest oil consumer.
Brent crude futures were down 40 cents, or 0.7%, to trade at $60.31 a barrel by 11:05 a.m. ET (1605 GMT) after falling to $59.88 a barrel earlier in the session.
U.S. West Texas Intermediate crude fell 74 cents, or 1.3%, to $56.39 a barrel, after dropping to as low as $55.76.
Both benchmarks slipped more than $1 during the previous trading session, with market participants expecting ample global supply this year.
The deal between Washington and Caracas could initially require cargoes that were bound for China to be rerouted, sources told Reuters.
Venezuela has millions of barrels of oil loaded on tankers and in storage tanks that it has been unable to ship since mid-December due to a blockade on exports imposed by Trump.
The blockade was part of a U.S. pressure campaign against Venezuelan President Nicolas Maduro’s government that culminated in U.S. forces capturing him over the weekend.
Top Venezuelan officials have called Maduro’s capture a kidnapping and accused the U.S. of trying to steal the country’s vast oil reserves.
Venezuela will be “turning over” between 30 million and 50 million barrels of “sanctioned oil” to the U.S., Trump wrote in a social media post on Tuesday.
“The volumes are quite small in a larger context,” SEB commodities analyst Ole Hvalbye said. “If you look at the U.S. SPR in total, that’s now 413 million barrels. So comparing that to 30 or 50 million barrels, the volumes are not so substantial.”
Adding to geopolitical risk, the U.S. was attempting to seize a Venezuela-linked oil tanker after a more than two-week-long pursuit across the Atlantic, two U.S. officials told Reuters on Wednesday.
The seizure, which could stoke tensions with Russia, came after the tanker, originally known as the Bella-1, slipped through a U.S. maritime “blockade” of sanctioned tankers and rebuffed U.S. Coast Guard efforts to board it.
Providing some support to prices, U.S. crude stocks dropped by 3.8 million barrels to 419.1 million barrels in the week ended January 2, the Energy Information Administration said. Analysts had estimated a 447,000-barrel rise.
U.S. gasoline stocks increased by 7.7 million barrels in the week, the EIA said, compared with analysts’ expectations in a Reuters poll for a 3.2 million-barrel build.
Distillate stockpiles, which include diesel and heating oil, climbed by 5.6 million barrels in the week versus expectations for a 2.1 million-barrel rise.
Morgan Stanley analysts estimated the oil market could reach a surplus of as many as 3 million barrels per day in the first half of 2026, based on weak growth in demand last year and rising supply from OPEC and non-OPEC producers.
However, the prospect of higher, cheaply extracted Venezuelan oil exports could pause expansion of productive capacity in the U.S. and elsewhere, analysts at BMI, a unit of Fitch Solutions, said in a note on Wednesday.
Venezuela has been selling its flagship crude grade, Merey, at around $22 per barrel below Brent for delivery at its ports.
“That raises the expected price of oil over the medium term, especially if the Venezuelan regime survives,” the BMI analysts said.
Reporting by Stephanie Kelly, Sam Li, Florence Tan and Sudarshan Varadhan; Editing by Joe Bavier, Louise Heavens and Jan Harvey
No illnesses have yet been confirmed in connection with the batches of SMA, BEBA, NAN and Alfamino formula that Nestle has recalled because of possible contamination with cereulide
International News via Reuters:
Nestle’s recall of some batches of infant nutrition products has widened beyond Europe to Africa, the Americas and Asia, including Brazil, China and South Africa, a tally from the company and national food safety statements show.
No illnesses have yet been confirmed in connection with the batches of SMA, BEBA, NAN and Alfamino formula that Nestle has recalled because of possible contamination with cereulide, a toxin that can cause nausea and vomiting.
At least 37 countries, including most European states, as well as Australia, Brazil, China, Mexico and South Africa have issued health warnings over the infant formulas possibly being contaminated.
The recall piles more pressure on the KitKat and Nescafe maker and its new CEO, Philipp Navratil, who is seeking to revive growth through a portfolio review after management upheavals. Nestle shares are down about 5.7% so far this week.
Brazil’s health ministry said on Wednesday that the Nestle recall was a preventative measure after the toxin had been detected in products originating in the Netherlands.
Nestle Australia said the batches recalled there had been manufactured in Switzerland, while Nestle China said it was recalling formula batches imported from Europe.
A notice from South Africa’s National Consumer Commission said that the NAN infant formula being recalled was produced in June 2025 and has a lifespan of about 18 months.
“It was also exported to Namibia and Eswatini,” the commission said.
Austria’s health ministry said on Tuesday that the recall affected 800-plus products from more than 10 factories and was the largest in Nestle’s history. A Nestle spokesperson could not verify this.
Nestle said on Tuesday that it had tested all arachidonic acid oil and corresponding oil mixes used in production of its potentially affected infant nutrition products after a quality issue was detected in an ingredient from a leading supplier.
It is now ramping up production and activating alternative suppliers of the acid oil to maintain supply.
Reporting by Alexander Marrow in London, Igor Sodre in Sao Paulo and Sfundo Parakozov and Anathi Madubela in JohannesburgEditing by Alexander Smith and David Goodman
Dual-use items are goods, software or technologies that have both civilian and military applications, including certain critical minerals essential for making drones and chips
International News via Reuters:
Japan called China’s ban on dual-use exports for its military “absolutely unacceptable” on Wednesday, amid a looming threat of broader curbs on vital rare earths in an escalating dispute between Asia’s top two economies.
Dual-use items are goods, software or technologies that have both civilian and military applications, including certain critical minerals essential for making drones and chips.
Japanese Prime Minister Sanae Takaichi touched off the dispute late last year by saying a Chinese attack on democratically-governed Taiwan could be deemed an existential threat to Japan. China regards Taiwan as part of its territory, a claim the island rejects.
Beijing has demanded she retract the remarks, which she has not done, prompting a series of countermeasures, the latest of which was Tuesday’s ban on exports to military users or for any purposes that contribute to Japan’s military strength.
“A measure such as this, targeting only our country, differs significantly from international practice, is absolutely unacceptable and deeply regrettable,” said Japan’s top government spokesman, Chief Cabinet Secretary Minoru Kihara.
At a daily press conference on Wednesday, he declined to comment on the possible impact on Japanese industry, saying it remained unclear exactly what items would be targeted.
Japan’s Nikkei share index fell about 1% on Wednesday, bucking a trend of record highs in U.S. and European benchmarks.
Stocks of major military contractors Kawasaki Heavy and Mitsubishi Heavy were among the biggest losers, down about 2%.
RARE EARTH CURBS NEXT?
Beijing is considering further clamping down on exports of rare earths to Japan, the China Daily, a newspaper owned by the ruling Chinese Communist Party, said on Tuesday, citing sources with knowledge of the matter.
Such a move could have sweeping implications for the manufacturing powerhouse, including its key automotive sector.
Japan has sought to diversify its supply of rare earths since China last throttled exports of the minerals in 2010, but still relies on China for about 60% of imports.
For some heavy rare earths, such as those used for magnets in electric and hybrid vehicle motors, for example, Japan is almost totally dependent on China, analysts say.
Japanese automaker Subaru said it was closely monitoring the situation, while peers such as Toyota and Nissan did not immediately comment.
A three-month curb on Chinese exports of rare earths, similar to that of the 2010 dispute, could cost Japanese businesses 660 billion yen ($4.2 billion) and shave 0.11% off annual gross domestic product, Nomura Research Institute economist Takahide Kiuchi said in a note on Wednesday.
A year-long ban would knock 0.43% off GDP, he added.
Tokyo will not likely sit idly by if Beijing’s bans do start to target Japanese business more broadly, said Cameron Johnson, a senior partner at supply chain consultancy Tidalwave Solutions in Shanghai.
“If there are Japanese civilian or commercial entities targeted, you could see the Japanese retaliate,” he said.
Such responses could target areas such as semiconductors or other high-end manufacturing materials China needs for its own supply chain, he added.
Separately on Wednesday, China launched an anti-dumping probe into imports from Japan of dichlorosilane, a key chemical for the semiconductor industry, the commerce ministry said on its website.
BRACING FOR A LONG WINTER
Since Takaichi’s offhand remark on Taiwan in early November, Beijing has urged citizens not to visit Japan, halted imports of Japanese seafood and cancelled meetings and cultural events.
U.S. President Donald Trump, who brokered a fragile trade war truce with Chinese President Xi Jinping late last year and plans to travel to Beijing in April, has asked Takaichi not to escalate the dispute further, sources told Reuters.
The quarrel does not, however, appear to have damaged Takaichi’s robust popularity at home, opinion polls show.
Analysts liken the rift to one triggered by Tokyo’s 2012 decision to nationalise disputed islands that set off mass anti-Japan protests in China, and halted meetings of the two countries’ leaders for 2-1/2 years.
“I think this will drag on for quite a while,” Keita Ishii, president of Itochu Corp, one of Japan’s biggest trading houses, said in a television interview on Tuesday.
Asked about the export curbs on Japan at a regular press briefing on Wednesday, China’s foreign ministry spokesperson reiterated Beijing’s anger over Takaichi’s Taiwan comments.
“We urge the Japanese side to confront the root cause of the issue, reflect on its mistakes, and retract the erroneous remarks,” Mao Ning said.
Later in the day, Japan’s Kyodo news agency reported that the Japanese government last week protested to China over signs of new offshore gas exploration activities in the East China Sea. The activities were observed on the Chinese side of the median line between the two countries, Kyodo said.
Tokyo has lodged similar protests with Beijing before, citing a 2008 agreement on cooperation in natural resources development in the East China Sea.
Japan’s Foreign Ministry was not immediately available to comment on the Kyodo report.
($1=156.6800 yen)
Reporting by Satoshi Sugiyama, Kantaro Komiya, Tim Kelly, Rocky Swift, Daniel Leussink and Maki Shiraki, Kiyoshi Takenaka in Tokyo; Liz Lee, Ethan Wang, Xihao Jiang, Shi Bu and Lewis Jackson in Beijing; Writing by John Geddie; Editing by Michael Perry and Clarence Fernandez
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