2026-02-02 06:05
Barry Callebaut changed CEO in January New CEO Schumacher seen as right leader for growth phase Board opposed proposal to separate cocoa unit-source Barry Callebaut is world's top chocolate maker ZURICH/LONDON, Feb 2 (Reuters) - Barry Callebaut (BARN.S) , opens new tab and its former CEO Peter Feld parted ways last month after a previously unreported clash at the top of the world's largest chocolate maker over a proposal to separate its cocoa business, two sources told Reuters. Members of Barry Callebaut's board, including its chairman Patrick De Maeseneire, opposed the plan, the sources said. Cocoa accounted for 31% of Barry Callebaut's total sales revenue and 15.5% of its operating profit in 2024/25. Sign up here. Reuters reported in December that Barry Callebaut was in the early stages of looking into separating the lower-margin cocoa unit and possibly selling a minority stake at a later stage. Feld and De Maeseneire did not respond to Reuters emails and calls seeking comment on the split within Barry Callebaut's leadership or the CEO's sudden exit from the Zurich-based firm. Barry Callebaut, which supplies chocolate for Magnum (MICCT.AS) , opens new tab ice cream and Nestle (NESN.S) , opens new tab KitKat bars, named ex-Unilever (ULVR.L) , opens new tab boss Hein Schumacher on January 21 to replace Feld, who joined the Swiss company as chief executive in 2023. "One reason for the departure was diverging views regarding the company's future strategy," a person with knowledge of the matter told Reuters, asking not to be named because they were not authorised to speak publicly. "The CEO was open to considering a separation of the cocoa unit and a potential transaction, but for parts of the Board - led by the chairman - this was a non-starter," they added. Barry Callebaut declined to comment on any disagreement between the former CEO and its board. It said the Swiss company has a "fully integrated cocoa and chocolate business model". 'A NEW PHASE OF GROWTH' One of the sources said that Barry Callebaut's board, which had initially been more supportive of a split, backed off from the idea, leading to a clash with Feld over strategy at the company, whose ingredients are used in about one in four chocolate and cocoa products consumed globally. Both sides agreed that a change was needed, the source said, adding that there were also other areas of disagreement, including on the level of investment in digitalization. Reuters earlier reported that the proposal for separating the cocoa business was aimed at reducing Barry Callebaut's exposure to volatile prices for the chocolate ingredient. Cocoa demand has collapsed after a 2024 price surge, falling to 21-year lows in the fourth quarter of last year in Europe as chocolate makers shrink product sizes and reformulate recipes. Barry Callebaut processes almost 1 million metric tons of cocoa a year, a fifth of global volume, and so is more exposed to price fluctuations than consumer-facing chocolate firms, who outsource some production to companies such as the Swiss group. Separating the cocoa processing arm could allow Barry Callebaut to protect itself from commodity price swings, focus resources on its higher-margin chocolate business and optimise its financing, sources previously told Reuters. The second source, who is close to the company, also said that there had been disagreement within the higher ranks of Barry Callebaut over the idea of separating the cocoa business. In an internal memo to employees seen by Reuters, Barry Callebaut said that with its transition programme nearly complete and the company moving to "a new phase of growth", now was the right time for a CEO transition. Schumacher was "the right leader at this stage to chart Barry Callebaut's next phase... based on our fully integrated cocoa and chocolate business model", the memo read. Artisan Partners, which has a stake of some 10% in Barry Callebaut, welcomed Schumacher's appointment and indicated it should keep the cocoa unit which gives it "vertical integration". "I think it's just a competitive advantage," David Samra, a managing director at Artisan Partners, told Reuters. https://www.reuters.com/sustainability/boards-policy-regulation/barry-callebaut-ceo-left-after-high-level-split-over-cocoa-sources-say-2026-02-02/
2026-02-02 06:04
BoE set to hold Bank Rate at 3.75% on Thursday Guidance on future cuts unlikely to change much Inflation is expected to fall sharply soon Some policymakers remain worried about wage growth LONDON, Feb 2 (Reuters) - British interest rates are likely to fall further this year but the Bank of England will probably sound vague this week about when or by how much it will cut borrowing costs as it awaits a clearer picture on inflation. The BoE is expected to keep its benchmark rate at 3.75% on Thursday, with Governor Andrew Bailey and colleagues keeping their options open. Sign up here. Britain has the highest official borrowing costs among the world's big, rich economies, despite six rate cuts since mid-2024. Further reductions might help Prime Minister Keir Starmer and finance minister Rachel Reeves to galvanise a sluggish economy. However, December's inflation reading of 3.4% was also the highest in the Group of Seven leading industrialised nations. It looks set to slow to the BoE's 2% target soon but some policymakers fear underlying price pressures remain too strong. "We expect Bank Rate to be cut twice this year. The timing of those rate cuts, however, is coming increasingly into question," Deutsche Bank Chief UK Economist Sanjay Raja said, adding that his forecast for cuts in March and June could be pushed back. MARKETS DIAL BACK RATE CUT BETS Investors are pricing almost no chance of a cut after this week's Monetary Policy Committee meeting and see less than a 50% chance of more than one rate cut this year. In mid-January, two quarter-point cuts were almost fully priced in. That was before some tentative signs of momentum in Britain's economy and a scaling back of expectations for rate cuts in the United States, which influence UK markets. Economists also expect little change to the BoE's latest economic forecasts, which in November pointed to inflation hovering around 2% in two and three years' time. Bailey said last month - as U.S. President Donald Trump spoke of a trade war with Europe over Greenland - that the BoE was "very alert" to geopolitical risks, but market reaction has thus far been muted. Trump has since dropped his threats. The main focus of investors at the BoE's policy announcement at 1200 GMT on Thursday - and a press conference half an hour later - is likely to be on any changes to its messaging. In December, the MPC said rates were "likely to continue on a gradual downward path" but - with policymakers uncertain about how many cuts could prove to be too many - it added "judgements around further policy easing will become a closer call". Some MPC members fear a slowdown in the strong pace of pay growth might peter out despite a recent rise in unemployment. They will receive an annual BoE pay survey. MPC member Megan Greene said last month she was worried about preliminary data from the survey suggesting settlements of around 3.5% for 2026, above the roughly 3% level consistent with 2% inflation. 7-2 VOTE FOR HOLD SEEN IN REUTERS POLL The MPC voted 5-4 to cut Bank Rate in December, the fourth quarter-point reduction of 2025. But most of its members suggested the pace of rate cuts could slow. Some tentative signs of a recovery among consumers and businesses, after months of speculation about tax hikes in Reeves' November 26 budget, could add to the case for slow rate cuts. Most economists polled by Reuters forecast a 7-2 MPC vote for no change in rates this week. Economists at Barclays said the next cut would be in March after which the BoE would hold Bank Rate at 3.5% "given the caution on the committee that rates at that level may no longer be restrictive". But Paul Dales, chief UK economist at Capital Economics, said inflation would probably slow more than expected, allowing the BoE to cut rates three times in 2026 starting in April. https://www.reuters.com/business/inflation-wary-bank-england-set-keep-rates-hold-2026-02-02/
2026-02-02 05:40
JAKARTA, Feb 2 (Reuters) - Indonesia imported 1,383 more cows from Australia this week, agriculture officials said on Monday, as part of an ambitious $3 billion plan to woo small farmers to join efforts to quadruple dairy output. Jakarta, contending with limited funds, is pushing private companies to fund the purchases, an unorthodox step that has fuelled concern among businesses in Southeast Asia's largest economy, Reuters reported last year. Sign up here. "These cattle are not only an addition to the population," Agung Suganda, the ministry's director general of livestock and animal health, said in a statement. "They are a strategic investment to strengthen the foundation of national milk production from smallholder farms." The centrepiece of a programme covering 83 million children and expectant mothers, the plan calls for imports of a million dairy cows over five years to boost numbers from 220,000 now. The ministry said the cattle imports comprised joint shipments and breeding, involving cooperatives and farmers since last year, with their milk yield set to flow into the processing industry to ensure certainty of supply. The latest shipment of dairy cows faces quarantine and disease checks after arriving on Sunday in the city of Cilacap in the province of central Java, said Hendra Wibawa, an animal health official at the ministry. "To ensure safety, a 14-day quarantine period will be ... followed by sample collection to detect diseases such as lumpy skin disease and foot-and-mouth disease," he added. Lunar Chemplast, a private company, imported 1,094 animals while Mazaraat Lokanatura Indonesia bought the rest, he said. Indonesia imported 33,955 cows in 2025 13,544 of them as dairy animals and the rest destined for beef, the ministry added. https://www.reuters.com/world/asia-pacific/indonesia-imports-1300-cows-australia-ambitious-dairy-plan-2026-02-02/
2026-02-02 05:33
A look at the day ahead in European and global markets from Wayne Cole Someone shouting fire in a crowded theatre is what's happening in the metals market. Everybody and their mum was piling into gold and silver - retail investors and leveraged funds, algos, CTAs and momentum plays. So when silver falls 30% in one session, it's everyone for the exits. Sign up here. The CME has reacted by raising margins on several metals contracts by between 2 and 4 percentage points, suggesting some investors are having trouble meeting margin calls. Dealers also say Chinese investors in popular silver futures funds were having trouble liquidating positions, with selling spilling over into other markets. Momentum is a powerful force, but it works in both directions. Silver was down, up, and now down again by around 8% at $78.50 an ounce . It was still just above Friday's trough of $73.70, though that may not be true by the end of this sentence, so volatile is trading. That has made for a risk-off tone in equities where all of Asia is in the red. Even the Nikkei could not sustain early gains made when opinion polls pointed to a majority win by the LDP in upcoming lower house elections. It was notable that neither gold nor Treasuries picked up a safe-haven bid amid the losses, suggesting investor confidence in U.S. assets is less than sound. The rout in gold is pressuring other "bubbly" markets, led by South Korean stocks (.KS11) , opens new tab with a drop of 5.5%. Wall Street futures are off 1.2% or so, and European futures between 0.6% and 1%. This means corporate earnings will have to be all the better to justify stretched valuations. About one quarter of the S&P 500 is reporting this week, along with around 30% of Euro STOXX market capitalisation. So far, S&P 500 EPS growth is running at 11% y/y against consensus forecasts for +7%. Obviously, all eyes will be on tech majors Alphabet , Amazon (AMZN.O) , opens new tab and AMD (AMD.O) , opens new tab, particularly for the costs and benefits of AI in the wake of Microsoft's (MSFT.O) , opens new tab badly received results. Analysts at Goldman Sachs noted consensus estimates for AI hyperscalers' capex this year had climbed to $561 billion, up 38% on 2025 and compared to $540 billion expected at the start of earnings season. Key developments that could influence markets on Monday: - Data include global PMIs, U.S. ISM survey for January - Speeches by BoE Deputy Governor Sarah Breeden, Executive Director Rebecca Jackson - Appearance by Fed Bank of Atlanta President Raphael Bostic https://www.reuters.com/markets/europe/global-markets-view-europe-2026-02-02/
2026-02-02 05:14
MOSCOW, Feb 2 (Reuters) - Dmitry Medvedev, deputy chairman of Russia's Security Council, said the U.S. "theft" of toppled Venezuelan President Nicolas Maduro shattered international relations and could be considered by Caracas as an act of war. "What happened to President Nicolas Maduro is obviously a violation of any norms of international law," Medvedev told Reuters, TASS and the WarGonzo Russian war blogger in an interview at his residence outside Moscow. Sign up here. "It breaks the whole system of international relations," Medvedev said, adding that if U.S. President Donald Trumpwas "stolen" by a foreign power then the U.S. would certainly consider it an act of war. https://www.reuters.com/world/americas/russias-medvedev-says-us-theft-maduro-shatters-international-relations-2026-02-02/
2026-02-02 04:46
MUMBAI, Feb 2 (Reuters) - The Indian rupee logged its best single-day gain in over a month on Monday, boosted by likely dollar sales by the central bank and modest inflows that dulled the spillover from global market volatility. The central bank complemented its interventions with dollar-rupee buy/sell swaps, which, traders said, were intended to offset the liquidity impact of its spot dollar sales. Sign up here. The liquidity impact of FX interventions has remained in focus due to their effect on money market interest rates as worries over hefty government borrowing have kept government bond yields elevated. On Monday, the rupee rose 0.5% to end the session at 91.5125 per dollar, its best one day gain since December 19. The yield on the 10-year benchmark bond rose as much as 8 basis points to 6.77%, the highest since March 2025. In domestic equity markets, the benchmark BSE Sensex (.BSESN) , opens new tab and Nifty 50 (.NSEI) , opens new tab rose a little over 1% each, clawing back some of their losses from Sunday's special trading session, when the federal budget underwhelmed investors. "The budget felt more like continuity than a surprise. It broadly met expectations but didn’t introduce a new catalyst that would materially change the foreign flows narrative, particularly at a time when emerging market (EM) inflows remain selective," said Marc Velan, head of investments at Lucerne Asset Management in Singapore. Foreign investors net sold $4 billion of Indian stocks in January, with persistent selling weighing on the rupee. Global markets, meanwhile, were rocked by a continued selloff in precious metals on Monday, forcing investors to ditch other assets to cover losses. MSCI's gauge of Asian shares outside of Japan fell over 2%, while futures pointed to a rough start for stocks on Wall Street as well. https://www.reuters.com/world/india/india-central-bank-shores-up-rupee-after-budget-underwhelms-investors-2026-02-02/
