2025-02-26 07:25
SINGAPORE, Feb 26 (Reuters) - South Korea's SK Energy plans to restart the 170,000-barrel-per-day (bpd) crude distillation unit (CDU) at its Ulsan refinery in next two weeks after maintenance work, three trade sources familiar with the matter said on Wednesday. It is unclear if the shutdown was planned, the sources said. The unit was shut on Monday morning, consultancy WoodMackenzie said in a LinkedIn post. The company's March export programme for some refined fuels such as diesel is unlikely to be affected by this shutdown, two of the sources said, adding that the other CDUs at the site would likely run at higher rates to cover the production loss. SK Energy has five CDUs at the refinery with a total capacity of 840,000 bpd. The company plans to shut its two 40,000-bpd residue hydrodesulphurisation units at the site, one after another between mid-March and mid-May, a fourth source said. The company's 110,000-bpd CDU is also likely to be shut from end-May to end-June for scheduled maintenance, a fifth source said. "SK Energy flexibly operates its plants based on market demand," an official at SK Energy said on Wednesday in response to a Reuters query, without commenting on the units. Sign up here. https://www.reuters.com/business/energy/skoreas-sk-energy-shuts-crude-unit-2-week-overhaul-sources-say-2025-02-26/
2025-02-26 06:57
LONDON, Feb 26 (Reuters) - Beer giant Anheuser-Busch InBev (ABI.BR) , opens new tab on Wednesday reported forecast-beating fourth quarter profits, even as a slowdown in the Chinese beer market dragged volumes down. Pricier labels like Corona and Michelob Ultra helped AB InBev grow revenues to an all-time high. The world's largest brewer said cost management also drove margin expansion, driving quarterly profits up 10.1% versus analyst forecasts of 7.7%. The company saw good growth in Central and South America, Europe and North America, gaining market share in the key U.S. market, where a consumer boycott of core label Bud Light has hurt in recent years. This marked an "extremely solid" end to the year for the brewer, said Laurence Whyatt, analyst at Barclays, adding lower volumes due to weak demand in China and Argentina should not take the shine off the earnings. But a 19% fall in volumes in China is likely to worry some investors. The brewer makes around a fifth of its sales in the region, analysts estimate, where a weak economy has hit demand for AB InBev's portfolio of pricier labels. Percentage volumes declined in the mid-teens in Argentina, where high inflation has dampened demand, leaving a 1.9% drop in group volumes, worse than analysts had expected. AB InBev's results come on the heels of bumper earnings from rival Heineken (HEIN.AS) , opens new tab. The no. 2 brewer's shares saw its biggest one-day gain since 1989 earlier this month after its annual profits, revenues and volumes beat forecasts and it predicted further strong growth this year. Carlsberg also reported higher than anticipated profit growth for 2025 in February. AB InBev forecast further organic operating profit growth of between 4% and 8% in 2025, adding to optimism around the sector. The company also cut debt levels further than anticipated - progress that will be welcomed after high leverage hurt AB InBev's ability to return cash to shareholders over the last decade. Sign up here. https://www.reuters.com/markets/commodities/brewer-ab-inbevs-q4-profits-beat-expectations-2025-02-26/
2025-02-26 06:51
JOHANNESBURG, Feb 26 (Reuters) - South Africa's rand was stable on Wednesday as markets awaited U.S. gross domestic product data and an inflation reading later this week. At 1602 GMT, the rand traded at 18.39 against the U.S. dollar , unchanged from the previous session's close. The dollar gained about 0.1% against a basket of currencies. Domestic data on Wednesday showed South African consumer inflation edged up in January in the first release since the statistics agency updated its consumer price basket, but the headline rate remained near the bottom of the central bank's target range. Inflation rose to 3.2% year-on-year in January from 3.0% in December (ZACPIY=ECI) , opens new tab, within the South African Reserve Bank's target range of 3% to 6%. "The South African rand remained subdued despite a rise in inflation, aligning with the (South African) Reserve Bank's recent caution on inflationary risks," said Zain Vawda, market analyst at MarketPulse by OANDA. Markets will look to second-quarter gross domestic product estimates for the U.S. on Thursday and a personal consumption expenditures reading, the Federal Reserve's preferred measure of inflation, on Friday. Vawda said global factors continue to outweigh local data and the upcoming U.S. data could spark "notable volatility" for the rand and other emerging market currencies. On the Johannesburg Stock Exchange, the blue-chip Top-40 index (.JTOPI) , opens new tab closed about 0.7% higher. South Africa's benchmark 2030 government bond was stronger, with the yield down 4 basis points to 9.025%. Sign up here. https://www.reuters.com/markets/currencies/south-african-rand-weakens-investors-await-local-inflation-data-2025-02-26/
2025-02-26 06:43
Feb 26 (Reuters) - Sibanye Stillwater (SSWJ.J) , opens new tab said on Wednesday it will not go ahead with plans to invest in the Rhyolite Ridge lithium project in the U.S. state of Nevada because it does not meet its investment criteria. The Johannesburg-based miner agreed to set up the lithium joint venture with Australian-listed Ioneer (INR.AX) , opens new tab in 2021 as part of its diversification into battery metals. Sibanye said after reviewing updated studies on the planned lithium mine, a decision was taken not to proceed with additional investments. The lithium project "did not meet the Sibanye Stillwater investment hurdle rates at prudent pricing assumptions", Sibanye said. The price of lithium, used to make batteries which power electric vehicles, has plunged over 80% from its peak in November 2022 after a supply glut, forcing companies to mothball mines and freeze projects. Sign up here. https://www.reuters.com/markets/commodities/sibanye-stillwater-pulls-out-rhyolite-ridge-lithium-project-2025-02-26/
2025-02-26 06:38
Dollar up on the back of US Treasury yields Investors worried about policy uncertainty, US economy Markets price more than two 25 bps Fed rate cuts in 2025 Yen retreats from highest since October Feb 26 (Reuters) - The U.S. dollar edged up from levels close to its 11-week low on Wednesday as U.S. Treasury yields bounced back after recent declines amid weak economic data and uncertainty over tariff implementation. On Tuesday, signs of deceleration in the U.S. economy and concerns about the impact of U.S. policy sent investors searching for refuge in safe-haven bonds. "Headlines about tariffs, as opposed to tariffs themselves, raise policy uncertainty, which can delay business undertakings, and thus be disinflationary," said Thierry Wizman, global forex and rates strategist at Macquarie. "This puts the Federal Reserve in a bind, as it must balance the disinflationary impulse from a policy uncertainty spike, with inflation from the prospect of actual tariffs later," he added. The U.S. dollar index , which measures the currency against six major rivals, added 0.15% to 106.41, rising from this week's low of 106.12, the weakest level since December 10. The 2-year U.S. Treasury yield declined as low as 4.074% on Tuesday for the first time since November 1, but was up 2 basis points (bps) at 4.1168% on Wednesday in London trade. U.S. Treasury Secretary Scott Bessent said on Tuesday the economy was more fragile under the surface than economic metrics suggest, citing interest rate volatility, sticky inflation and job growth dependence on the government sector, adding that tariffs are an important source of revenue. Money markets are currently pricing 55 bps of Fed rate cuts IRPR by year end, which imply two 25 bps easing moves and a 20% chance of an additional cut. "With more voices from the European Central Bank arguing in favour of pausing its cutting cycle sooner rather than later, the prospects look good for a further favourable move in spreads for the euro/dollar," said Derek Halpenny, head of research, global markets at MUFG, adding that tariff threats keep the single currency capped. The euro was 0.1% lower to $1.0501, after reaching $1.0528 on Monday, its highest since January 27. ECB board member Isabel Schnabel said it was no longer clear the current 2.75% rate is holding back the economy. Policymakers are discussing how much further rates must fall when inflation is still a bit too high. Optimism for more spending in Germany has supported the single currency, although election winner Friedrich Merz on Tuesday ruled out a rapid reform to state borrowing limits known as the "debt brake". The Canadian dollar edged down to a fresh two-week low and the Mexican peso was little changed ahead of a possible new round of tariffs from the U.S. Trump said on Monday that duties against Canada and Mexico would proceed as scheduled, ostensibly from March 4. However, Mexican President Claudia Sheinbaum said on Tuesday she expected to reach an agreement that could head off a potential trade war with the U.S. Canadian minister Francois-Philippe Champagne told reporters that discussions to convince Trump that Canada has done enough to address U.S. concerns over border security would continue. The dollar rose as high as C$1.433 , its strongest level since February 12. It dropped 0.1% to 20.4464 Mexican pesos . The U.S. currency gained 0.2% to 149.32 yen , rebounding from Tuesday's low of 148.56 yen, its weakest since October 11. The Australian dollar eased 0.2% to $0.6328 after data earlier in the day showed growth in consumer prices had dipped month-on-month in January, which may reassure the central bank of a cooling in inflation. Bitcoin , the largest cryptocurrency by market capitalisation, was little changed at $88,416, after slumping 5.6% on Tuesday and touching the lowest level since mid-November at $86,003.11. Market nerves over U.S. tariffs have reinforced the blow to crypto investor confidence from last week's $1.5 billion hack of ether from the Bybit exchange. Sign up here. https://www.reuters.com/markets/currencies/us-dollar-wallows-near-11-week-low-amid-soft-economic-data-tariff-worries-2025-02-26/
2025-02-26 06:26
Nvidia reports better-than-expected EPS, revenue European shares hit record on strong earnings, US-Ukraine deal House advances Trump's tax cut plans to Senate Trump set to announce EU tariffs U.S. indexes: Dow off 0.43%; S&P 500 ~unchanged; Nasdaq up 0.26% NEW YORK, Feb 26 (Reuters) - U.S. stocks fluttered to a mixed close on Wednesday amid fresh tariff threats while a draft U.S.-Ukraine deal on critical minerals and robust corporate earnings helped European shares close at a record high. Global shares also gained and benchmark Treasury yields notched their sixth straight day of declines, while the U.S. dollar rose after House Republicans advanced U.S. President Donald Trump's tax cut plans. Artificial intelligence chipmaker Nvidia (NVDA.O) , opens new tab posted better than expected quarterly revenue and adjusted earnings per share. Nvidia's shares rose 3.7% in extended trading after the release. Investor skepticism has grown over the billions that U.S. tech firms have channelled into AI infrastructure due to slow payoffs and to breakthroughs at China's DeepSeek. The Republican-controlled U.S. House of Representatives late on Tuesday narrowly passed Trump's $4.5 trillion tax-cut plan, sending the budget resolution to the Senate, where Republicans are expected to take it up. "It's mainly good for corporate U.S.," said Lars Skovgaard, senior investment strategist at Danske Bank. "There's expected to be less regulation and tax cuts. I would expect it to happen and then it will be positive for markets if they do so." U.S. housing data showed the sales of new homes fell sharply in January as persistently high mortgage rates sidelined potential homebuyers. The data is the latest to hint at dampening consumer demand. The Dow Jones Industrial Average (.DJI) , opens new tab fell 187.48 points, or 0.43%, to 43,433.68, the S&P 500 (.SPX) , opens new tab rose 0.90 points, or 0.02%, to 5,956.15 and the Nasdaq Composite (.IXIC) , opens new tab rose 48.88 points, or 0.26%, to 19,075.26. European sentiment improved after reports that the U.S. and Ukraine agreed terms of a draft minerals deal, sending European shares up for a second straight day to an all-time closing high. "(The plan) moved through just a little bit quicker than people were expecting," said Tony Sycamore, a market analyst at IG. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab rose 2.27 points, or 0.26%, to 869.00. The pan-European STOXX 600 (.STOXX) , opens new tab index rose 0.99%, while Europe's broad FTSEurofirst 300 index (.FTEU3) , opens new tab rose 22.22 points, or 1.01%. Emerging market stocks (.MSCIEF) , opens new tab rose 12.88 points, or 1.15%, to 1,135.26. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) , opens new tab closed higher by 1.18%, to 596.26, while Japan's Nikkei (.N225) , opens new tab fell 95.42 points, or 0.25%, to 38,142.37. Benchmark U.S. Treasury yields reversed earlier gains amid new tariff uncertainties, and registered their sixth straight declines. The yield on benchmark U.S. 10-year notes fell 4.6 basis points to 4.252%, from 4.298% late on Tuesday. The 30-year bond yield fell 4.4 basis points to 4.5121% from 4.556% late on Tuesday. The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, fell 2 basis points to 4.076%, from 4.096% late on Tuesday. A closely watched part of the U.S. Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes , seen as an indicator of economic expectations, was at a positive 17.4 basis points. Fed funds futures now point to 55 bps of easing priced in by year-end, implying at least two quarter-point cuts, up from about 40 bps a week ago. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, rose 0.23% to 106.48, with the euro down 0.25% at $1.0487. Against the Japanese yen , the dollar weakened 0.01% to 149.03. Oil prices touched a two-month low after a surprise build-up in U.S. stockpiles and the growing potential for a Ukraine-Russia peace deal weighed on prices. U.S. crude dropped 0.45% to settle at $68.62 per barrel, while Brent settled at $72.53 per barrel, down 0.67% on the day. Gold prices were subdued after a recent record rally, while investors looked to inflation data on Friday and digested Trump's latest tariff plans. Spot gold rose 0.03% to $2,915.99 an ounce. U.S. gold futures rose 0.33% to $2,914.10 an ounce. Sign up here. https://www.reuters.com/markets/global-markets-wrapup-1-2025-02-26/
