2025-02-21 02:56
MUMBAI, Feb 21 (Reuters) - The Indian rupee is expected to open modestly stronger on Friday, benefiting from a broadly weaker dollar that was weighed down by positional adjustments as traders recalibrated their expectations about U.S. President Donald Trump's policies. The 1-month non-deliverable forward indicated that the rupee will open at around 86.60 to the U.S. dollar compared with 86.66 in the previous session. The dollar index declined to a more-than-two-month-low of 106.3 on Thursday and was last quoted a tad higher in Asia trading. The offshore Chinese yuan rose to a peak of 7.23, its highest level since late November, before trimming gains. U.S. President Donald Trump's remark about a possible trade deal with China and a dip in U.S. bond yields have both weighed on the dollar, DBS Bank said in a note. Comments from U.S. Treasury Secretary Scott Bessent that the administration had no plans to increase sales of long-dated debt weighed on U.S. bond yields on Thursday. The rupee should benefit from a broadly softer dollar but could face resistance near 86.50, a trader at a mid-sized private bank said. "On the flip side, state-run banks have been active around 86.90 levels and above (on USD/INR), which should keep a lid on gains," the trader added. The local currency had climbed to a peak of 86.47 last week, largely on the back of heavy-handed intervention by the Reserve Bank of India. While the prevailing bearish bias on the rupee has eased - as signalled by a reduction in short bets per a Reuters poll - portfolio outflows remain a sore point for the local currency. Overseas investors have sold over $11 billion of local stocks over 2025 so far on a net basis. "If the dollar weakness persists, it may help ease the equity outflows and help out the rupee some more," a second trader at a private bank said. KEY INDICATORS: ** One-month non-deliverable rupee forward at 86.78; onshore one-month forward premium at 18.25 paise ** Dollar index at 106.47 ** Brent crude futures down 0% at $76.4 per barrel ** Ten-year U.S. note yield at 4.5% ** As per NSDL data, foreign investors bought a net $944.7 mln worth of Indian shares on Feb. 19 ** NSDL data showed foreign investors sold a net $163.8 mln worth of Indian bonds on Feb. 19 Sign up here. https://www.reuters.com/markets/currencies/rupee-benefit-dollar-eases-year-to-date-lows-eyes-portfolio-flows-2025-02-21/
2025-02-21 00:49
OSLO, Feb 21 (Reuters) - Britain's electricity distribution network is facing a fundamental role change to deliver the country's net zero emissions target, requiring more proactive investments, a report from a government-appointed commission found on Friday. Distribution networks deliver electricity to homes and businesses and are highly regulated, with companies given an annual allowance for expenditures, so-called price controls, to protect customers from unnecessarily high grid use costs. However, the current regulatory process was too complex and focused on short-term costs, rather than the wider goals of economic growth and decarbonisation, the National Infrastructure Commission (NIC) said in its latest report. The UK aims to reach net zero emissions by 2050. "Price controls will need to be reformed to enable proactive investment," it added. Power demand in Britain is set to rise by around 50% by 2035 and double by 2050 as heating, transport and industry increasingly turn to electricity to decarbonise, the National Infrastructure Commission (NIC) said in its latest report. This could require nationwide investments of 37-50 billion British pounds ($47-$63 billion) in the distribution network between today and 2050, at least double current price control levels, the report said. While the exact timing of the new demand was uncertain, waiting for it to materialise risked investing too late, creating bottlenecks and delays, it added. Scottish and Southern Electricity Networks (SSEN) Distribution, a subsidiary of SSE (SSE.L) , opens new tab, welcomed the report and hoped its finding would be reflected when regulator Ofgem set the next round of price controls starting in 2028. "SSEN shares the NIC's view that any impact on customer bills will be limited, and expects that in the longer term, this additional efficient investment will ultimately help keep costs lower for consumers overall," the company said. ($1 = 0.7910 pounds) Sign up here. https://www.reuters.com/sustainability/climate-energy/report-urges-more-proactive-uk-grid-investments-help-decarbonisation-2025-02-21/
2025-02-21 00:46
BENGALURU, Feb 21 (Reuters) - The Bank of Korea (BOK) will cut its key interest rate by 25 basis points on Tuesday, offering support to an economy which barely grew last quarter, according to economists polled by Reuters who expected a further 50 points of easing this year. After unexpectedly holding its policy rate steady last month, South Korea's central bank signaled it needed to wait for domestic political turmoil, which weighed on the currency, to stabilize before easing further. With the won rebounding around 2.5% against the U.S. dollar this year and inflation at 2.2% in January, not far from the BOK's medium-term target of 2%, the central bank now has room to cut rates to support a weak economy. All but one of the 36 economists polled February 14-20 expected the BOK to cut its base rate (KROCRT=ECI) , opens new tab by 25 basis points to 2.75% on Tuesday. "We believe the BOK is going to cut by 25 basis points. They will be acknowledging that the economy will face a greater negative output gap, which justifies the BOK's move to address growth," said Stephen Lee, chief economist at Meritz Securities. "As long as FX volatility remains subdued, I think there is a chance for the BOK to implement additional rate cuts this year." The central bank, in its last policy statement, projected economic growth to be slower this year than the previously estimated 1.9% due to weaker exports, deteriorating consumer sentiment, and ongoing political turmoil, which is expected to remain a drag on growth this year. Asia's fourth-largest economy, which heavily depends on semiconductor exports - particularly to the U.S. - faces significant risks from U.S. President Donald Trump's tariff threats against major trading partners, which could hit South Korean shipments. That increases pressure on the BOK to cut policy rates to stave off a potential recession. A strong majority of economists, 32 of 35, predicted a quarter-point rate cut to 2.50% in Q2, with most also forecasting another cut in Q3, bringing the rate 75 bps lower than currently, to 2.25%. That was despite the U.S. Federal Reserve projected to make fewer or no cuts in coming months. A separate Reuters poll showed economists divided on the timing of the next Fed rate cut, with most expecting it by mid-year and some seeing it later or not at all. Median forecasts showed Korean rates would remain unchanged at 2.25% in Q4 2025, a view unchanged from the January poll. "Our view is the Fed will only cut once this year, in June... the U.S. (Fed) is pausing because they're getting closer to the neutral, but (BOK) still has some room to cut in order to get to the neutral," said Bum Ki Son, North Asia economist at Barclays. (Other stories from the February Reuters global economic poll) Sign up here. https://www.reuters.com/markets/rates-bonds/bank-korea-cut-rates-by-25-bps-february-25-amid-growth-worries-2025-02-21/
2025-02-21 00:10
DUBAI, Feb 21 (Reuters) - United Arab Emirates energy giant Abu Dhabi National Oil Co (ADNOC) said early on Friday it completed a $2.84 billion marketed offering in its ADNOC Gas unit (ADNOCGAS.AD) , opens new tab. The offering was priced at 3.40 dirhams per share, ADNOC added in a statement. It is the biggest share sale in the Middle East and North Africa (MENA) region since the $12.3 billion follow-on offering by Saudi Aramco (2223.SE) , opens new tab in June, and one of the largest in recent years. Parent ADNOC completed the marketed offering of 3.1 billion shares to institutional investors, representing 4% of ADNOC Gas' total share capital. Books for the share sale were covered throughout the range of the offering, according to one of the bookrunners. ADNOC's gas unit became operational at the start of 2023 as the state-backed oil giant consolidated its gas processing, LNG and industrial gas operations into one company. It has since listed on the Abu Dhabi stock exchange, raising about $2.5 billion in one of the biggest IPOs in the region in recent years. Parent ADNOC in November said it saw "significant value creation potential in ADNOC Gas" but had not taken a decision on an "additional share sale, including the timing or sizing of such a sale." BofA Securities, Citi, EFG Hermes, First Abu Dhabi Bank, HSBC and International Securities are the joint global coordinators and bookrunners for the offering, ADNOC said in the statement on Thursday. ADNOC also raised $935 million in May last year by selling a 5.5% stake in its drilling unit to institutional investors. Sign up here. https://www.reuters.com/markets/deals/uaes-adnoc-sell-4-stake-adnoc-gas-2025-02-20/
2025-02-21 00:00
US-listed shares of Alibaba gain after Q3 revenue beat Baxter International jumps on consensus-beating estimates Palantir Technologies drops on potential Pentagon budget cuts Indexes down: Dow 1.01%, S&P 500 0.43%, Nasdaq 0.47% NEW YORK, Feb 20 (Reuters) - U.S. stocks sold off on Thursday as ongoing tariff jitters and a downbeat forecast from Walmart dampened investor risk appetite. A broad selloff pulled all three major U.S. stock indexes into negative territory, with the blue-chip Dow suffering the steepest loss, shedding 1.01%. The S&P 500 snapped its two-day string of record closing highs. Gold prices surged to a record high, suggesting a flight to safety amid mounting uncertainties. Walmart (WMT.N) , opens new tab, the world's largest retailer, provided current fiscal year sales and profit forecasts that fell shy of analysts' expectations, which suggested dampening consumer demand. "With the consumer driving 70% of the U.S. economy (Walmart's) weak guidance gave rise to some nervousness, regarding the health of the consumer and potential consumer spending going forward," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut. "That led to maybe some selling pressure in shares of Walmart, which spread throughout the overall market," Pavlik added. Walmart's shares slid 6.5%, while other large retailers Target (TGT.N) , opens new tab and Costco Wholesale (COST.O) , opens new tab lost 2.0% and 2.6%, respectively. Walmart's results also provided a glimpse into how the company expects to fare under U.S. President Donald Trump's growing list of tariff announcements. On Wednesday, that list was expanded to include lumber, autos, semiconductors and pharmaceuticals. "You can't talk about uncertainty if you don't mention tariffs, right? That's been a very volatile headline," said Mike Dickson, head of research at Horizon Investments in Charlotte, North Carolina. "Is Trump using this as a bargaining tool? Is he serious about it? Who's going to be impacted? You've seen a lot of that." Recent economic data, including jobless claims and Atlantic region factory activity, suggested that the U.S. economy is in solid shape for now, in line with recent comments by Federal Reserve policymakers. But some economists fear labor market disruptions are possible as a result of the thousands of federal employees recently fired by billionaire Elon Musk's Department of Government Efficiency (DOGE). The Dow Jones Industrial Average (.DJI) , opens new tab fell 450.94 points, or 1.01%, to 44,176.65, the S&P 500 (.SPX) , opens new tab lost 26.63 points, or 0.43%, to 6,117.52 and the Nasdaq Composite (.IXIC) , opens new tab lost 93.89 points, or 0.47%, to 19,962.36. Among the 11 major sectors in the S&P 500, financials (.SPSY) , opens new tab lost the most, dropping 1.6%. Energy (.SPNY) , opens new tab enjoyed the biggest percentage gain, rising 1.0%. Palantir Technologies (PLTR.O) , opens new tab, which provides governments with services such as software that visualizes army positions, shed 5.2% after a Pentagon announcement on Wednesday that it was looking at potential budget cuts for the fiscal year 2026. U.S.-listed shares of Alibaba Group advanced 8.1% following the Chinese e-commerce firm's consensus-beating third-quarter revenue. Hasbro (HAS.O) , opens new tab jumped 13.0% after the toymaker beat quarterly profit and revenue estimates. Medical device firm Baxter International (BAX.N) , opens new tab gained 8.5% after the company provided a better-than-expected 2025 profit forecast. Declining issues outnumbered advancers by a 1.13-to-1 ratio on the New York Stock Exchange. There were 125 new highs and 72 new lows on the NYSE. On the Nasdaq, 1,617 stocks rose and 2,734 fell as declining issues outnumbered advancers by a 1.69-to-1 ratio. The S&P 500 posted 10 new 52-week highs and three new lows while the Nasdaq Composite recorded 54 new highs and 132 new lows. Volume on U.S. exchanges was 16.36 billion shares, compared with the 15.57 billion average for the full session over the last 20 trading days. Sign up here. https://www.reuters.com/markets/us/futures-fall-markets-assess-tariffs-geopolitical-risks-2025-02-20/
2025-02-20 23:24
Feb 20 (Reuters) - Utility firm Alliant Energy (LNT.O) , opens new tab beat fourth-quarter profit estimates on Thursday, helped by higher electricity rates. Regulated utilities use rate case proceedings to seek rate increases, basing their appeals on their investments or expenses incurred in delivering services. Quarterly adjusted profit from its Interstate Power and Light Company unit almost tripled to $101 million from a year earlier, after it received an order from the Iowa Utilities Commission (IUC) authorizing annual base rate increases. Alliant serves roughly 1 million electric and 427,000 natural gas customers in Iowa and Wisconsin. Last year, the utility firm said it executed multiple power supply deals with data centers in Iowa and Wisconsin. The increasing popularity of advanced artificial intelligence tools, such as OpenAI's ChatGPT, has led to a growing need for high-performance data centers capable of processing the vast amounts of data required to handle large volumes of information, boosting demand for electricity. The company reported an adjusted profit of 70 cents per share for the quarter ended December 31, compared with the analysts' average estimate of 68 cents per share, according to data compiled by LSEG. Sign up here. https://www.reuters.com/business/energy/alliant-energy-beats-fourth-quarter-profit-estimates-higher-electricity-rates-2025-02-20/
