2025-02-27 07:01
Engie reviewing renewable development assets May divert investment from US due to uncertainty 'You need to know the rules,' CEO says Shares hit near-decade high after 2025 forecast raised PARIS, Feb 27 (Reuters) - French utility Engie (ENGIE.PA) , opens new tab could divert investment away from the United States if there is no clarity and predictability on policy there, CEO Catherine MacGregor has said. As Engie's shares jumped to their highest in almost a decade on Thursday after it upgraded its 2025 profit forecast, the company said it would now review its renewable development assets in several countries, including the United States. Engie is Europe's largest gas network operator and has a growing renewable energy business in the United States. "You need to know the rules and it's very difficult to invest if you don't have the rules," MacGregor told the Financial Times, in comments later confirmed to Reuters by an Engie spokesperson. "We are able in the relatively short term to reallocate some of our capital to different parts of the world. If we don't have clarity for a long time, we may do that." U.S. President Donald Trump suspended federal offshore wind leasing on his first day back in office, which has forced other companies to suspend projects or pull out entirely. He also paused the disbursement of funds appropriated under his predecessor's signature climate and infrastructure laws. More broadly, Engie plans to review Local Energy Infrastructures in several countries, also including Brazil, MacGregor told reporters. "We have decided to focus on the markets that are going to be the most profound for us," she said, adding that the company would review what to do in smaller markets with fewer opportunities. OUTLOOK Engie posted a 6.2% fall in 2024 operating profit excluding nuclear, due to a decline in gas prices, the impact of an energy tax in France and a decrease in gas-fired power plant usage in Europe. But it also raised its outlook for 2025. It increased its forecast for recurring net income this year to a range of 4-4.5 billion euros ($4.19 billion - $4.71 billion), up from a previous range of 3 billion euros to 4.5 billion euros. Engie also said it now expects its earnings before interest and tax (EBIT), excluding nuclear, in 2025 at 8 billion euros to 9 billion euros, raised from an expected 7.9 billion euros to 8.9 billion euros that it forecast in early 2024. Lower financial costs and income tax along with expectations for a better global performance are expected to be the main drivers for the increased guidance, a company spokesperson said. Hydro, wind and solar all helped Engie's renewables business post positive growth in 2024. The segment contributed a profit of 2.2 billion euros to Engie's overall result, the company said, up 9.6% year-on-year. ($1 = 0.9546 euros) (This story has been corrected to change 'renewable construction and grid development' to the title of division 'Local Energy Infrastructures' in paragraph 7) Sign up here. https://www.reuters.com/business/energy/engies-net-operating-profit-2024-down-62-2025-02-27/
2025-02-27 06:44
MUMBAI, Feb 27 (Reuters) - The Reserve Bank of India's three-year dollar-rupee swap is expected to attract significant interest from companies seeking to hedge long-duration dollar liabilities and from lenders looking to raise rupee funds, according to six bankers. Under the swap, the Reserve Bank of India will buy $10 billion and inject an equivalent amount of rupees next week, and reverse the move in three years. Bids are due on Friday. The swap is part of the RBI's measures to bolster rupee liquidity in the banking system and follows an oversubscribed $5 billion six-month swap late last month. The longer tenor in the new swap is not expected to impact demand. "There will be strong demand for the swap across the Street. Foreign banks would be there and corporates would definitely be interested in a three-year duration," said Vikas Jain, Bank of America's head of India fixed income, currencies and commodities. Corporates with foreign currency liabilities and loans will likely be the main takers and for banks, the motivating factors would be access to long-term rupee liquidity or taking/unwinding tactical position, said Akshay Kumar, head of global markets, India, BNP Paribas. He expects a near 2x bid-to-cover ratio for the auction. Banks will submit bids in terms of the premium they are willing to pay expressed in paisa terms. The 3-year dollar-rupee forward was at 6.80 rupees/7.00 rupees. BNP's Kumar reckons the cutoff "will be in line with market-traded levels, with a small tail of 2-3 basis points". Sameer Karyatt, executive director and head of trading at DBS Bank India, agreed and noted the market adjustments since the swap was announced last Friday have made it particularly attractive for companies with external commercial borrowings to hedge their exposure. A large Indian conglomerate is expected to bid aggressively at the swap auction, said two bankers who did not want to be named as they are not authorised to speak to the media. Sign up here. https://www.reuters.com/markets/currencies/long-term-hedging-rupee-liquidity-needs-drive-demand-india-central-banks-fx-swap-2025-02-27/
2025-02-27 06:43
Feb 27 (Reuters) - Belgian chemicals maker Syensqo (SYENS.BR) , opens new tab said on Thursday it was exploring a potential dual listing in the U.S. after it forecast 2025 core earnings at least on last year's level. "As we expect a major part of our future growth and investments to be in this strategically important region, it makes sense for us to explore a U.S. listing, which has the potential added benefits of expanding and enhancing our investor base," CEO Ilham Kadri said in a statement. The group does not consider moving its headquarters to the United States, Kadri added in a wire call with journalists. The Americas are Syensqo's largest business region, representing more than 40% of group sales and workforce, as well as being home to more than half its industrial footprint. Syensqo said on Tuesday it would respond to U.S. trade tariffs with strategic measures and was evaluating shorter-term mitigation options, such as introducing a temporary surcharge to offset higher tariff-related costs. It did not provide more details in Wednesday's press release. The speciality chemicals company, spun off from Solvay (SOLB.BR) , opens new tab last year, said it expected macroeconomic concerns and demand uncertainty to persist across most of its end markets this year, weighing on its outlook. "2025 will also see us continue to assess options to accelerate value creation, including through divestments," Kadri said in the statement. The group plans to separate its Aroma business next, he added. Syensqo said it aimed to deliver more than 200 million euros ($209.4 million) in savings by the end of 2026. It sees underlying earnings before interest, taxes, depreciation and amortization (EBITDA) of at least 1.4 billion euros in 2025, which would put it in line with last year's number. Analysts polled by Syensqo had forecast 2024 EBITDA of 1.4 billion euros, which they were expecting to rise to 1.47 billion in 2025. ($1 = 0.9552 euros) Sign up here. https://www.reuters.com/markets/commodities/syensqo-explore-us-listing-after-it-forecasts-least-flat-2025-earnings-2025-02-27/
2025-02-27 06:35
European shares close down 0.5%, following Wednesday's record Wall Street under pressure from weak US data, tech losses Gold hits a 2-week low on a firmer dollar NEW YORK/GDANSK, Feb 27 (Reuters) - Major Wall Street indexes closed lower on Thursday as fresh U.S. data hurt sentiment and tech stocks weighed, and European stock markets fell following a threat from U.S. President Donald Trump to impose 25% tariffs on imports from the region. Data showed jobless claims stood at 242,000, higher than estimates of 221,000. Oil prices climbed over 2% as supply concerns resurfaced. Trump revoked Chevron's license to operate in Venezuela. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab fell 12.23 points, or 1.41%, to 856.88. The euro retreated. Benchmark U.S. Treasury yields rose after the U.S. data and as traders braced for key inflation data. Investors were focused on monthly Personal Consumption Expenditure data, which is the Federal Reserve's preferred inflation gauge, due on Friday. The S&P 500 dropped 1.59% to end the session at 5,861.57 points, as the Nasdaq tumbled 2.78% to 18,544.42 points, its biggest single-day rout in a month. The Dow Jones Industrial Average gave up earlier gains, finishing down 0.45% at 43,239.50 points. Shares of Nvidia (NVDA.O) , opens new tab, which reported earnings late Wednesday, swung to losses as investors focused on signs of increased AI spending in the industry. Trump created some confusion over the looming duties on top trading partners Canada and Mexico on Wednesday, by signalling they would take effect on April 2, which would be another month-long extension. However, a White House official later said the previous March 4 deadline for the levies remained in effect "as of this moment", stirring further uncertainty about U.S. trade policy. Trump also floated a 25% "reciprocal" tariff on European cars and other goods. European stocks were weaker across the board, with the STOXX 600 index (.STOXX) , opens new tab closing down 0.5%, after touching a record high on Wednesday. The index was dragged by automaker and component maker shares (.SXAP) , opens new tab in response to the potential tariffs. "We're almost in a situation where there is so much news that it's leaving traders paralysed, because they don't know what to focus on, and particularly with Trump, what is a negotiating gambit and what is a serious policy proposal," said Michael Brown, senior research strategist at Pepperstone. "Given the degree of uncertainty, it does make sense to lighten up on positioning, particularly in riskier assets." A Reuters poll showed that the ECB was set to trim its deposit rate again to 2.5% next week. The yield on benchmark U.S. 10-year notes rose 1.7 basis points to 4.266%. The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, fell 1.3 basis points to 4.059%, from 4.072%. US GROWTH JITTERS The greenback, which has been under pressure in recent weeks, rose, with the dollar index , which measures the greenback against a basket of currencies including the yen and the euro, up 0.79%. Traders have raised bets on Federal Reserve interest rate cuts, now seeing two quarter-point reductions this year, with the first likely in July. The Fed's preferred inflation gauge, the Personal Consumption Expenditure (PCE) index, is due on Friday. "Markets are starting to feel less confidence about U.S. growth," said Shoki Omori, chief global desk strategist at Mizuho Securities. Nvidia shares (NVDA.O) , opens new tab were down over 4% despite the heavyweight U.S. chipmaker and artificial intelligence pioneer giving a strong growth forecast for the first quarter. Cryptocurrency bitcoin fell 0.70% to $83,804.40, following a nearly 12% tumble over the first three days of this week. Bitcoin bull Geoff Kendrick, global head of digital assets research at Standard Chartered, cautioned against buying the dip just yet in a note to clients. "Stay patient," he said. "These types of losses rarely end well and I still think the big capitulation is yet to come." Spot gold hit a two-week low under pressure from a stronger dollar. U.S. gold futures settled 1.2% lower at $2,895.90. Elsewhere in commodities, Brent crude oil futures settled up $1.51, or 2.1%, at $74.04 a barrel. U.S. West Texas Intermediate crude oil futures rose $1.73, or 2.5%, to $70.35. Sign up here. https://www.reuters.com/markets/global-markets-wrapup-1-2025-02-27/
2025-02-27 06:33
Feb 27 (Reuters) - French metallurgical group Vallourec (VLLP.PA) , opens new tab reported a 23.6% drop in its fourth quarter core profit on Thursday, citing lower average selling prices in its North American tubes business. Vallourec, which makes tubing for oil and gas, low-carbon energy and industrial markets, said its operating earnings before interest, taxes, depreciation and amortization (EBITDA) fell to 214 million euros ($224 million) in the final quarter of 2024. ($1 = 0.9555 euros) Sign up here. https://www.reuters.com/markets/commodities/vallourecs-core-profit-drops-lower-tube-prices-north-america-2025-02-27/
2025-02-27 06:32
Trump says Canada and Mexico tariffs to start next week US initial jobless claims higher than expected US GDP shows growth slowed in Q4 NEW YORK, Feb 27 (Reuters) - The dollar jumped on Thursday and was poised for its biggest daily percentage gain in more than two months as U.S. President Donald Trump's latest tariff comments overshadowed signs of slower economic growth. The greenback initially pared gains after data showed weekly initial jobless claims rose by 22,000 to a seasonally adjusted 242,000, above the 221,000 estimate of economists polled by Reuters. Other data from the Commerce Department showed gross domestic product increased at a 2.3% annualized rate last quarter after accelerating at a 3.1% pace in the July-September quarter in its second estimate of the data. But the dollar quickly rebounded after Trump said 25% tariffs on Mexican and Canadian goods will go into effect on March 4 as scheduled because drugs are still pouring into the United States from those countries. "It's a world where people do not know what's going on, so they will wait for clarity before they commit to bigger investments, and that leaves foreign exchange a little bit sidelined and a little bit more prone to these kind of quick catch-ups," said Bob Savage, head markets strategist at BNY in New York. "Tariffs will confuse people about what it means for the economics of the world and who's going to get hurt the most and who wins and who loses, and there's going to be a lot of noise and dust to figure out before anyone comes through all of that," Savage added. The dollar index , which measures the greenback against a basket of currencies, climbed 0.72% to 107.23, on track for its biggest daily percentage gain since December 18. The euro slumped 0.74%, on pace for its biggest drop since January 2, to $1.0405. Prime Minister Justin Trudeau said Canada "will have an immediate and extremely strong response" if the United States imposes tariffs on Canadian imports next Tuesday. The Canadian dollar weakened 0.69% versus the greenback to C$1.44, and the Mexican peso was off 0.12% versus the dollar at 20.464. The greenback had fallen earlier this week nearly 4% from a more than two-year high in January on renewed worries about U.S. economic growth and inflation as Trump shifted tariff deadlines on Canada and Mexico. Investors are also bracing for the labor market impact from actions by the Department of Government Efficiency under Elon Musk. The path of interest rate cuts by the Federal Reserve has become less clear, with markets pricing in 58 basis points of easing by year-end, and a cut of at least 25 bps not topping 50% until the June meeting. Federal Reserve Bank of Cleveland President Beth Hammack said she expects U.S. central bank interest rate policy is on hold for the time being. Philadelphia Federal Reserve Bank President Patrick Harker expressed support for continuing to hold short-term U.S. borrowing costs in their current range. The European Central Bank is expected to cut rates next week to 2.50%, according to all 82 economists polled by Reuters who expected two further cuts by mid-year. Against the Japanese yen , the dollar strengthened 0.52% to 149.85. Bank of Japan Governor Kazuo Ueda told reporters at the close of a Group of 20 finance meeting in South Africa it was notable that many countries had warned of high global economic uncertainty. Sterling weakened 0.51% to $1.2608. In cryptocurrencies, bitcoin fell 0.66% to $83,896.18 after falling to $82,156.99 on Wednesday, its lowest since November 11. Sign up here. https://www.reuters.com/markets/currencies/dollar-firms-trumps-shifting-messages-tariffs-stir-uncertainty-2025-02-27/
