2025-04-14 11:37
TSX ends up 1.2% at 23,866.53 Posts its highest closing level since April 3 Financials end up 1.7% Utilities gain 1.6%, real estate adds 1.9% April 14 (Reuters) - Canada's main stock index rose on Monday to an 11-day high, with financial and real estate shares leading broad-based gains as investors grew doubtful that hefty U.S. tariffs would be implemented at the scale first proposed. Toronto Stock Exchange's S&P/TSX Composite Index (.GSPTSE) , opens new tab ended up 278.73 points, or 1.2%, at 23,866.53, its highest closing level since April. The index was extending its rebound from an eight-month low last Tuesday. Sign up here. Wall Street's main indexes also rose after the White House exempted smartphones and computers from new tariffs. That followed a stunning reversal last Wednesday by U.S. President Donald Trump, who said he would temporarily lower new tariffs he had just imposed on dozens of countries. “The tariffs were going to do a lot of damage to the economy in the way they were first announced," said Steve Palmer, founding partner and chief investment officer at AlphaNorth Asset Management. "I don’t believe they can come back as they were originally proposed. The market clearly didn’t like it." Recent gyrations in stocks have accompanied an epic surge in U.S. Treasury yields and a selloff in the U.S. dollar (.DXY) , opens new tab. All 10 major sectors advanced, including a gain of 1.7% for heavily weighted financials. The interest rate-sensitive utilities and real estate sectors added 1.6% and 1.9%, respectively, as bond yields eased. The Canadian 10-year yield was trading 14.2 basis points lower at 3.125% after touching on Friday its highest intraday level since January 24 at 3.309%. Growing recession risks to Canada from the U.S.-led trade war will push the Bank of Canada to cut interest rates at least twice more this year, according to a , although a majority of the economists said policymakers will leave the benchmark rate unchanged at 2.75% on Wednesday. The materials group, which includes metal mining shares, was up 1% as copper prices climbed. https://www.reuters.com/world/americas/tsx-futures-rise-after-us-excludes-key-tech-imports-china-tariffs-2025-04-14/
2025-04-14 11:34
MOSCOW, April 14 (Reuters) - Russia, the world's second biggest oil exporter and the second largest natural gas producer, sees stable crude production and significant growth in natural gas production and exports over the next quarter century, according to its new energy strategy. Russia's pipeline gas exports to Europe, once its main trading partner, collapsed following the 2022 invasion of Ukraine, though Russian crude exports have continued to world markets. Sign up here. According to Russia's new energy strategy published by the government on Monday, Russia targets natural gas exports, including sea-borne liquefied natural gas (LNG) and supplies via pipelines, at 293 billion cubic metres (bcm) in 2030, up from 146 bcm in 2023. It is expected to jump to 438 bcm in a targeted scenario in 2050. The document is a long-term vision of the Russian energy sector which also sets goals. The strategy sees stable annual oil production of 540 million metric tons a year (10.8 million barrels per day) through to 2050, up from 531 million tons in 2023. Oil exports are also forecast to stay broadly stable, at 235 million tons per year in 2030 - 2050, slightly up from 234 million tons in 2023. The West has imposed myriad of sanctions against Russia over the conflict in Ukraine, including restrictions on oil exports and some supplies of LNG. Russia has been unable to start LNG deliveries to customers from Arctic LNG-2 plant, which started super-cooled gas output in December 2023, due to the U.S. sanctions. In its energy strategy, Russia expects LNG exports to jump to 142 bcm in 2030 from 45 bcm in 2023 and further to 241 bcm in 2050. https://www.reuters.com/business/energy/russia-sees-stable-oil-exports-booming-gas-business-by-2050-2025-04-14/
2025-04-14 11:21
Marex recognises 'bargain purchase gain' in financials Marex recently acquired Edgemere Terminals, sources say Marex's portfolio includes metal recycling firm Tangent Trading LONDON, April 14 (Reuters) - Marex Group has bought UK-based Darton Commodities, a trader of cobalt metal used to make aerospace and military equipment, the financial services firm told Reuters on Monday, declining to give further details. Two sources familiar with the matter said the transaction completed in March, but they did not know how much commodity broker Marex paid for Darton or exactly when the deal was agreed. Sign up here. However in its preliminary first quarter results published on April 2, Marex said a "bargain purchase gain is expected to be recognised as a result of the group's acquisition" of Darton. In the profit before tax section, the bargain purchase line estimate showed an estimated negative entry of between $3.4 million and $6.1 million, leaving adjusted profit before tax estimates at between $92.3 million and $97.3 million. According to Companies House, a UK government agency responsible for registering companies, Darton's address was changed on April 8 to 155 Bishopsgate in the City of London, where commodities broker Marex is headquartered. Marex's website shows it offers derivative trading of industrial metals including aluminium, copper, molybdenum, nickel, zinc and tin. On the physical side, Marex owns recycling firm Tangent Trading, which trades metals such as copper used in the power and construction industries. Marex recently bought warehousing and logistics company Edgemere Terminals, according to sources. Prices of cobalt metal used to make missiles, aerospace parts, magnets for communication, and radar and guidance systems have risen since Democratic Republic of Congo suspended cobalt exports in February. At around $16 a lb or $35,270 a metric ton , they are up nearly 60% since hitting a nine-year low in February. https://www.reuters.com/markets/deals/marex-group-acquires-uk-cobalt-trader-darton-commodities-2025-04-14/
2025-04-14 11:20
Britain seeks to keep important Scunthorpe plant operating Raw materials are in the country, government says UK took operational control from Chinese owners Beijing urges resolution through consultation SCUNTHORPE, England, April 14 (Reuters) - Britain expressed confidence on Monday that it could secure enough raw materials to keep the blast furnaces burning at its last maker of virgin steel, after the government seized operational control from its Chinese owners. Ministers said British Steel's owners, China's Jingye Group (600768.SS) , opens new tab, had wanted to shut the furnaces at the loss-making Scunthorpe plant after they rejected a government funding proposal, a move which would force Britain to import steel instead. Sign up here. The government recalled parliament at the weekend - the first Saturday recall since the 1982 Falklands War - to pass emergency legislation and give it powers to direct the company's board and workforce, and to order raw materials. By Monday morning it had approved the appointment of an interim chief executive and chief commercial officer - both long-term employees of the plant - and said it had established that enough raw materials were in the country. A spokesperson for Prime Minister Keir Starmer said two shipments containing iron ore, pellets and coking coal had docked at a local port, with a third on its way. "We are now confident in securing the supply of materials needed," the spokesperson told reporters. "Obviously we'll be working with management to identify further raw materials needed to keep a steady pipeline and to keep the furnaces burning." Treasury department minister James Murray said earlier on Monday that the focus was on getting the materials into the blast furnaces, and said if the government had not acted on Saturday the blast furnaces would be closing. A number of businesses, including India's Tata and local distributor Rainham Steel, have also offered managerial support and raw materials, the government said. The dispute risks straining ties between London and Beijing, which Prime Minister Keir Starmer's Labour government had sought to improve, at a time when nations around the world are trying to deepen trading cooperation after the U.S. tariff shock. Jingye has not commented, but China called for fair treatment of its companies and resolution through consultation. The furnaces in the northeastern city of Scunthorpe need to be constantly fuelled and are losing 700,000 pounds ($922,000) a day. Their output is used in the rail network, construction and automotive industry. Without the plant, Britain would be reliant on imports at a time of trade wars and geopolitical instability. The intervention at a site which employs 3,500 people and more in the supply chain prompted Britain's business minister, Jonathan Reynolds, to say on Sunday that China was no longer welcome in Britain's steel sector. CHINA: 'ACT FAIRLY' The Chinese embassy in London said it was following the situation closely, hoped Britain could find a solution acceptable to all, and noted that British steel companies had generally encountered difficulties in recent years. "We have urged the British side to act in accordance with the principles of fairness, impartiality and non-discrimination and to make sure the legitimate rights and interests of the Chinese company be protected," an embassy spokesperson said. Beijing's foreign ministry urged Britain not to politicise trade, so as to protect the confidence of Chinese investors. British Steel has not commented on the dispute but did announce on Monday the appointment of Allan Bell as interim chief executive and Lisa Coulson as chief commercial officer to ensure "consistent and professional leadership" at the plant. The company was already struggling in an over-supplied global market before the rise in energy costs of recent years. U.S. tariffs of 25% on all steel imports, taking effect in March, delivered another blow. The Community union representing workers at the plant welcomed the government intervention, as did industry trade body UK Steel. Closure of the furnaces would leave Britain as the only G7 wealthy nation unable to produce so-called virgin steel from iron ore, coking coal and other inputs. The government says nationalisation of the plant is now a likely option. ($1 = 0.7590 pounds) https://www.reuters.com/world/uk/uk-confident-keeping-british-steel-going-after-taking-control-2025-04-14/
2025-04-14 11:11
April 14 (Reuters) - KKR (KKR.N) , opens new tab will buy a joint venture of S&P Global and CME Group in a $3.1 billion deal, marking the U.S. private equity firm's second acquisition in less than a week despite the tariff turmoil slowing the pace of dealmaking activity. The proceeds from the deal to sell London-based OSTTRA — which provides post-trade services across interest rate, foreign exchange, equity and credit asset classes — will be divided evenly between financial data provider S&P Global (SPGI.N) , opens new tab and derivatives marketplace CME (CME.O) , opens new tab, they said on Monday. Sign up here. Financial sponsors are buying and selling assets even as corporates pause activity due to market volatility stemming from U.S. President Donald Trump's ever-changing tariff talks. Last Wednesday, New York-based KKR agreed to acquire E45-maker Karo Healthcare from Swedish PE firm EQT (EQTAB.ST) , opens new tab. "Clearly KKR is playing the long game here buying OSTTRA and not letting the current volatile environment stop them from acquiring a high-quality asset at a reasonable price from their perspective," Huber Research Partners analyst Craig Huber said. Post-trade services play a vital role in global financial markets, helping to process and reconcile trades and enable their timely settlement. OSTTRA, which counts banks, hedge funds, asset managers, central banks and regulators among its clients, processes more than 80 million trades monthly. With KKR's support, "we will further accelerate our strategic initiatives" to enhance post-trade offerings and "expand our global footprint", OSTTRA co-CEOs Guy Rowcliffe and John Stewart said. OSTTRA's management, led by Rowcliffe and Stewart, will continue to lead the company in their present roles. CME and financial data provider IHS Markit combined their post-trade services to form OSTTRA in 2021. S&P Global acquired IHS Markit in 2022. For S&P Global, the sale of this equity stake further helps clean up the portfolio following IHS Markit acquisition, Huber said. The deal with KKR is expected to close in the second half of 2025. Barclays and Citi advised S&P Global and CME, respectively. Goldman Sachs and BofA Securities were among KKR's advisers. https://www.reuters.com/markets/deals/buyout-firm-kkr-buy-osttra-31-billion-deal-2025-04-14/
2025-04-14 11:10
BUENOS AIRES, April 14 (Reuters) - Argentina has sealed a $20 billion extended fund facility (EFF) with the International Monetary Fund and dismantled large parts of its currency controls as libertarian President Javier Milei looks to drag the country out of a prolonged economic slump. With markets seeing the developments as positive, what is the IMF deal and the FX policy shift all about? Sign up here. HOW MUCH IS ARGENTINA GETTING? The country says , opens new tab that it is set to receive $28 billion in 2025 alone, including $15 billion of the IMF money, $6.1 billion from other multinational lenders, $2 billion from global banks, and $5 billion from extending a currency swap with China. The IMF will disburse $12 billion this week, followed by a programme review in June that should unlock $2 billion more and a further review at the end of the year with another $1 billion. "These liquid resources will be used to strengthen the (central bank's) balance sheet through the repurchase of non-transferable bonds by the Ministry of Economy," Argentina's central bank said. WHAT'S THE NEW FX POLICY? The new exchange rate regime will allow the peso to float freely within a moving band between 1,000 and 1,400 pesos per dollar, shifting from a far more tightly-controlled "crawling peg" that had the currency at around 1,074 on Friday. The new moving band will expand by 1% each month at both the higher and lower limits of the band. The central bank will be able to buy and sell dollars if the band is breached, while within the band it may choose to operate in secondary peso markets through open market operations, the central bank said. The IMF, in its staff report , opens new tab, added that the currency framework would evolve over time towards a "fully flexible exchange rate in the context of a bi-monetary system, where the peso and U.S. dollar coexist." WHAT'S THE RESERVES BUILD-UP TARGET? Under the IMF deal, Argentina will need to build up net foreign reserves to the tune of $4 billion by the end of the year versus the level on December 31, 2024. A baseline target would see this accelerate to an $8 billion build-up next year. While Milei's government has made reserves build-up a major focus and had some success, this has gone into reverse in recent weeks amid rising pressure on the peso, leading net reserves to slide back to negative $7 billion, according to an IMF estimate. DOES 'NET ZERO' FISCAL TARGET REMAIN? The agreement foresees a baseline aiming for a primary fiscal surplus this year of 1.3% of GDP, slightly below last year, although economy minister Luis Caputo has already suggested the government will aim higher at around 1.6%. The overall fiscal target - including debt repayments - targets a fiscal balance this year. The primary and overall surplus would start to rise next year and beyond. COULD ARGENTINA RETURN TO CAPITAL MARKETS? The IMF said in its staff report that if there is "decisive implementation" of the programme and rapid build-up of reserves, then this could lower borrowing costs for Argentina and see it re-access international capital markets by early 2026. The country's challenges, however, are not over, with reserves in the red and inflation, while down sharply from when Milei took office in December 2023, still sticky. "Reserves coverage remains very weak," the IMF said. "More work is needed to anchor inflation and durably strengthen the country's external position and resilience to a more complex global backdrop." https://www.reuters.com/world/americas/what-do-we-know-about-argentinas-imf-deal-fx-policy-2025-04-14/
