2025-02-13 15:46

JOHANNESBURG, Feb 13 (Reuters) - South Africa's rand was stable in volatile trade on Thursday, as financial markets awaited "reciprocal tariffs" that U.S. President Donald Trump said he planned to unveil later in the day. At 1532 GMT, the rand traded at 18.5325 against the U.S. dollar, at its Wednesday closing level. Trump on Thursday said he would unveil reciprocal tariffs, but gave no details about his latest plan, which could take aim at every country that charges duties on U.S. imports. Trump already announced tariffs on all steel and aluminum imports beginning on March 12 and imposed 10% tariffs on goods from China since taking office in January. On the Johannesburg Stock Exchange, the blue-chip Top-40 index (.JTOPI) , opens new tab closed about 0.1% down. South Africa's benchmark 2030 government bond was stronger, with the yield down 4 basis points at 9.165%. Sign up here. https://www.reuters.com/markets/currencies/south-african-rand-stable-markets-await-trumps-new-tariffs-2025-02-13/

2025-02-13 15:20

Feb 13 (Reuters) - The Federal Reserve will likely wait until September before cutting its policy rate, traders bet on Thursday, as data kept alive worries over elevated inflation and a decline in jobless claims suggested the labor market remains healthy. Even so, the specific elements that drove the 0.4% rise last month in the producer price index -- versus economists' expectation for a 0.3% gain -- gave some reason to expect improvement in the measure that the Fed uses to track inflation. Several analysts crunching the data along with Wednesday's report of a surge in consumer prices in January say they now estimate underlying year-over-year personal consumption expenditure price inflation rose 2.6% or 2.7% in January, down from 2.8% in December. "The Fed still can declare, therefore, that progress in returning inflation to its 2% objective is still being made," Pantheon economist Samuel Tombs wrote, one of several Wall Street analysts making a similar point. Financial markets reflected that view as well, with the market-based probability of a July rate cut rising to just shy of even odds, from only about 40% earlier. A September rate cut is still seen as more likely. Fed policymakers last month kept their policy rate in the 4.25%-4.50% range. Fed Chair Jerome Powell said this week he feels policy needs to stay restrictive until there is better progress on bringing down inflation. Central bankers also have their eye on any signs of weakness in the labor market that could trigger an interest rate cut. On Thursday, a separate government report showed the number of Americans filing new applications for unemployment benefits fell last week, suggesting the labor market remained stable early in February. Sign up here. https://www.reuters.com/markets/us/fed-seen-likely-policy-hold-until-sept-traders-add-bets-july-cut-2025-02-13/

2025-02-13 14:51

Canada sends 75% of its exports to the US Toronto market's materials sector up nearly 15% this year Canadian dollar has been hit hard by trade uncertainty TORONTO, Feb 13 (Reuters) - As the threat of a trade war grows, Canadian investors are seeking protection in gold and in shares of companies producing goods with few substitutes, such as uranium, while looking to take advantage of a weaker loonie and expected volatility. U.S. President Donald Trump has threatened to implement a 25% tariff on most Canadian imports in March, with steel and aluminum facing even stiffer levies after new orders signed by the president on Monday. Canada sends 75% of its exports to the United States and tariffs are a major risk to the Canadian economy. Financial, telecom, real estate, energy and materials shares account for roughly two-thirds of Canada's main stock market index, the S&P/TSX Composite (.GSPTSE) , opens new tab, and those sectors would likely escape the direct impact of tariffs or benefit from carve-outs. But analysts say there could be an indirect hit to earnings if the Canadian economy slips into recession. Shares of trade-sensitive companies have already fared badly since Trump was elected on Nov. 5, with planemaker Bombardier Inc (BBDb.TO) , opens new tab down about 19% along with declines for auto parts, steel, lumber and dairy product stocks. "All this uncertainty around trade and geopolitical tensions has definitely gotten gold back on the front burner," said Greg Taylor, a portfolio manager at Purpose Investments. "Across our multi-asset funds we have been adding gold in the real asset sleeve as an area to try and offer some protection but also some absolute return," Taylor said. The Toronto market's materials sector (.GSPTTMT) , opens new tab, which includes metal mining shares, is up nearly 15% this year, including a gain of 26.5% for the shares of heavily weighted Agnico Eagle Mines Ltd (AEM.TO) , opens new tab, as safe-haven demand helped drive the price of gold to a record high. Together with strong gains for technology shares, stocks linked to metals have helped keep the TSX within reach of the record high it posted in January despite the tariff threats. "Tariffs are going to hurt all parties quite a bit but if you're going to spare some industries, you probably spare industries that you don't have a substitute for and are currently reliant on," said Ben Jang, a portfolio manager at Nicola Wealth, noting U.S. dependence on Canadian oil, critical minerals and uranium. Major producers of uranium include TSX-listed Cameco Corp (CCO.TO) , opens new tab, shares of which Nicola Wealth owns. Cameco has pulled back from an all-time high in December but has still managed to advance roughly 46% since early September. "The U.S has a concern over energy security and has talked about a focus on energy independence. In our view, nuclear power is part of that solution," Jang said. The Canadian dollar has been hit hard by trade uncertainty, touching a 22-year low last week of 1.4793 per U.S. dollar, or 67.60 U.S. cents. "We had a modest TSX allocation going into this and are now looking to increase our exposure to oil & gas and materials," said Victor Kuntzevitsky, a portfolio manager at Stonehaven Private Counsel, part of Wellington-Altus Private Counsel. "Many oil and gas and materials firms generate revenue in USD while incurring costs in CAD, creating an inherent currency advantage," Kuntzevitsky said. The Bank of Canada's interest-rate cutting campaign has also weighed on the loonie but could help support the economy. Government spending on impacted sectors could also lend support, analysts say. "There's a lot of talk around this (trade war) and it's creating some volatility, which is probably going to create some opportunity at the end of the day," Taylor said. Sign up here. https://www.reuters.com/markets/commodities/canadian-investors-add-gold-uranium-stocks-trade-war-risk-grows-2025-02-13/

2025-02-13 12:44

Feb 13 (Reuters) - DTE Energy (DTE.N) , opens new tab reported a fall in fourth-quarter profit on Thursday, as the utility took a hit from lower pricing for electricity. Regulated utilities use rate-case proceedings to determine the amount customers need to pay for electricity and natural gas. DTE had filed one such rate case to help reduce the cost of producing electricity. The utility said it saved about $300 million in fuel and transportation costs after the rate case came into effect in November, but it also reduced the electricity rates for residential customers by roughly $5 a month. DTE provides electricity to 2.3 million customers in Southeast Michigan and natural gas to 1.3 million customers in Michigan. At the company's electric segment - its largest by income -operating earnings fell to $195 million during the October-December quarter from $244 million a year earlier. Meanwhile, operating earnings from its natural gas segment remained flat year-over-year. DTE said it expects 2025 operating earnings to be in the range of $7.09 to $7.23 per share, the midpoint of which is below analysts' estimate of $7.20 according to data compiled by LSEG. The utility's net income fell to $292 million, or $1.41 per share, for the quarter ended December 31, from $419 million, or $2.02 per share, a year earlier. Sign up here. https://www.reuters.com/business/energy/dte-energy-posts-fall-fourth-quarter-profit-lower-rates-2025-02-13/

2025-02-13 12:30

Feb 13 (Reuters) - PG&E Corp (PCG.N) , opens new tab on Thursday raised its adjusted core earnings forecast for 2025, as the power company benefits from lower operating expenses and higher electricity rates. Last month, the California Public Utilities Commission approved another request from the company to raise electricity prices after a series of similar hike approvals last year. The utility said it recorded a rate base growth of 10.5% in 2024. U.S. electric utilities are pushing for more hikes, as rising demand from data centers, manufacturers and other industries such as transportation has put tremendous pressure on grids. The company said it added nearly 14,000 new customers in 2024 to its electric grid system. "In 2024, we connected more new customers to our grid than we have in decades," PG&E Corporation CEO Patti Poppe said. As of February, the company saw a two gigawatt (GW) increase in its data center pipeline from July last year. PG&E is the parent company of Pacific Gas and Electric Company, an energy company that serves 16 million Californians across a 70,000-square-mile service area in Northern and Central California. The Oakland, California-based company raised its full-year forecast for adjusted core earnings to between $1.48 and $1.52 per share, up from $1.47 to $1.51 previously. Analysts expect earnings of $1.49 per share, according to data compiled by LSEG. In 2024, the company's operating expenses fell 8.3% to $19.96 billion compared to last year. On an adjusted basis, PG&E reported a fourth-quarter core profit of 31 cents per share, in line with analysts' estimates. Shares of the company rose 1% in premarket trading. Sign up here. https://www.reuters.com/business/energy/pge-raises-2025-core-earnings-forecast-higher-electricity-rates-2025-02-13/

2025-02-13 12:21

LONDON, Feb 13 (Reuters) - S&P Global completed the list of top credit rating agencies to warn that an "unprecedented" U.S. withdrawal from the World Bank and other top multilateral lenders would damage their prized triple-A credit ratings. President Donald Trump signed an Executive Order last week for a six-month review of U.S. support to all international intergovernmental organisations to decide whether it should withdraw from them, or seek their reform. S&P said the current triple-A ratings of the World Bank and other top development banks assume the U.S. remaining in place. Therefore, if Washington were to "limit" its support, any rating change that came as a result of that was likely to be "negative". S&P's top MDB analyst Alexander Ekbom added that it would ultimately depend on the impact on the individual institution's capital and whether other major shareholders filled the void that would be left. "Should the U.S. leave, which would be unprecedented, it is difficult to predict how any reallocation would be ironed out," he said. Sign up here. https://www.reuters.com/markets/sp-global-warns-unprecedented-us-world-bank-withdrawal-risk-2025-02-13/