2025-02-05 07:08
LONDON/COPENHAGEN, Feb 5 (Reuters) - Novo Nordisk emissions grew 23% in 2024, the company said on Wednesday, and will keep rising through the end of the decade as it boosts production of blockbuster obesity drug Wegovy. The company is spending billions to ramp up its Wegovy output as demand soars. "Emissions come with growth," said Katrine DiBona, corporate vice president of global public affairs and sustainability at Novo Nordisk, told Reuters in an interview. The Danish drugmaker said however its expansion plans do not change its commitment to the 2045 net zero emissions goal it set in 2021. In its annual report published with its fourth-quarter financial results on Wednesday, it also announced an interim target to cut its Scope 3 emissions by 33% by 2033 from a 2024 baseline. Scope 3 emissions - which include those from all suppliers in a company's supply chain - account for 96% of Novo's overall total. Novo Nordisk's plans to cut emissions include converting to lower-carbon materials where possible, and setting expectations for suppliers to use green power for deliveries. DiBona said some levers will not be available for some years, which is why the company expects emissions to keep rising until 2030. "It will be worse before it gets better. And that’s also super important for us to be very transparent on that." Experts said the company's interim target seemed unrealistic, since it was not decoupling growth from emissions. "Sounds like a fairy tale," said Sasja Beslik, chief investment strategy officer at asset manager SDG Impact Japan, in response to the targets. Beslik said companies generally do not suffer reputational risk for setting climate targets and failing to reach them. "The sustainability angle is not part of the valuation of the stock and has no bearing on financial results, unfortunately." Novo previously reported a 55% increase in emissions from 2022 to 2023, but revised its emissions accounting to restate the 2023 data. Sign up here. https://www.reuters.com/sustainability/wegovy-maker-novo-nordisk-says-surging-growth-driving-emissions-higher-2025-02-05/
2025-02-05 07:06
MUMBAI, Feb 5 (Reuters) - The Reserve Bank of India likely intervened to support the rupee on Wednesday as the currency hovered near its all-time low amid broad-based interbank dollar demand, three traders told Reuters. The rupee was at 87.2175 to the dollar as of 12:15 p.m. IST, down 0.2% on the day and within touching distance of its record low of 87.28 hit on Monday. State-run banks were spotted offering dollars near 87.24-87.26 levels, most likely on behalf of the RBI, which helped limit the rupee's losses, traders said. Expectations that the central bank will cut interest rates at its policy meeting on Friday have weighed on the rupee, alongside routine dollar demand from importers. The dollar index was lower by 0.2% at 107.8 while Asian currencies were mostly stronger. The rupee has declined more than 1.5% over 2025 so far and is the worst performer among major Asian currencies. Sign up here. https://www.reuters.com/markets/currencies/indian-central-bank-likely-sold-dollars-support-rupee-traders-say-2025-02-05/
2025-02-05 07:04
LONDON, Feb 5 (Reuters) - From the Western world's biggest economic car crash to an emerging bridge between trade-warring superpowers, Britain's shifting 2025 narrative is hard to keep up with. Neither angle will likely turn out to be the 'right' one. But the sudden switch is yet another example of how dangerous it can be for investors to chase the macro zeitgeist in 2025. This 180-degree turn in the mood surrounding the UK since mid-January is surely welcomed by the Bank of England, which is holding its first policy meeting of 2025 this week. Hark back just three weeks. At the time, the central bank appeared to be in a serious bind. 'Gilt' yields had catapulted to multi-decade highs, potentially signaling a full-blown strike among buyers of British government debt. The pound was falling against the dollar. Stagflation fears were festering, as the business community widely panned the new Labour government's tax-and-spend budget. And exchanges between the incoming U.S. administration and the UK government were proving rancorous. Billionaire Bridgewater founder Ray Dalio told the Financial Times on January 21 that a "debt death spiral" was in the works. Two weeks later, the UK looks like a different country. 'DEATH SPIRAL' TO 'VERY NICE' The UK has enjoyed a series of benign inflation reports, rising demand for higher yielding gilts, a rapid sterling bounce and accelerated BoE easing expectations. Meanwhile, finance minister Rachel Reeves laid out a series of long-term growth spurs this week, reinforcing the idea that the Labour government has converted from an austerian to a 'go-go' growth cheerleader. The World Economic Forum in Davos last month joined in the love fest. Some 14% of 5,000 global corporate leaders polled by PwC said they expect Britain to receive more international investment this year than every country except the United States. That's the highest ranking the UK has held in 28 years. Aided by these calmer waters, markets have moved from pricing just two BoE rate cuts this year - in line with the increasingly cautious Federal Reserve - to at least three. In turn, the 30-year gilt yield had fallen about 40 basis points from the 27-year high it reached in January to roughly 5.5%, while the pound's trade-weighted index has reversed nearly all of January's slide. TRANSATLANTIC BRIDGE? But the most remarkable turnaround may be the perception of where Britain stands in what could be an unfolding global trade war. Just one month ago, British Prime Minister Kier Starmer was trading barbs with Tesla boss and Trump adviser Elon Musk. This reinforced fears among investors that the United Kingdom, stuck outside the European Union, could be squeezed mercilessly if the bloc were forced into a trade war with Washington. That view has now been flipped on its head. Pundits now argue that Britain may be able to surf between the two economic powers, possibly even attracting investment from both as a result of its halfway status. This is partly because Starmer's charm offensive towards Trump appears to be working. The U.S. president publicly warmed to, in his words, a "very nice" UK prime minister this week. Starmer is also attending this week's EU summit amid reports that Brussels might be open to Britain joining the so-called Pan Euro Mediterranean , opens new tab convention on tariff-free access to EU markets. Add to this the fact that the U.S. actually runs a trade surplus with Britain and there is a reasonable hope that London could potentially dodge any tariffs that Washington is drawing up against the EU while simultaneously pursuing more open trade with both. Taking this scenario to its logical conclusion, there's even chatter the UK could potentially become a 'third country' investment destination for European companies seeking to avoid rising trade barriers between Washington and Brussels. Will the UK actually become a Transatlantic bridge? The idea is far neater than what is likely to be a messy reality. And much hinges on global developments far beyond Britain's control. But just like the changes in the UK debt, growth and interest rate narratives of the past month, this is another massive plot shift, as the UK moves from being an isolated small economy squashed by giant warring economic powers to a potential trade war winner. The BoE will certainly not want to alter this rosy picture when it convenes this week. But if the past few weeks are any indication, it shouldn't get too comfortable. The opinions expressed here are those of the author, a columnist for Reuters. Sign up here. https://www.reuters.com/world/uk/zero-hero-uk-narrative-switches-yet-again-mike-dolan-2025-02-05/
2025-02-05 06:43
COPENHAGEN, Feb 5 (Reuters) - Danish jewellery maker Pandora (PNDORA.CO) , opens new tab said on Wednesday that organic growth this year would be lower than last, as it expects sluggish demand in Europe and slowing growth in Germany after a strong run. Pandora, known for its charm bracelets, reported operating profit in line with expectations for the key holiday shopping quarter, with CEO Alexander Lacik saying demand in the U.S., its biggest market, was stronger than in Europe. The world's biggest jewellery company by volume said it sees 7-8% organic growth in 2025. Organic growth for 2024 was 13%, better than the company's guidance of 11-12%. Fourth-quarter operating profit rose to 4.15 billion crowns from a year-earlier 3.67 billion, against a mean forecast of 4.10 billion in an analyst poll provided by Pandora. Pandora, whose shares recently hit a record high, also launched a new share buy-back programme for up to 4 billion Danish crowns. Sign up here. https://www.reuters.com/business/retail-consumer/pandora-fourth-quarter-profit-meets-expectations-2025-02-05/
2025-02-05 06:27
China's wheat cargoes being resold to buyers in Southeast Asia Lower demand in China after bumper wheat, corn harvests Around 10 wheat cargoes to China delayed or redirected SINGAPORE/CANBERRA, Feb 5 (Reuters) - China has delayed imports of up to 600,000 metric tons of mostly Australian wheat and offered some of these cargoes to other buyers as ample domestic supplies reduce demand in the world's top buyer of the grain, two trade sources with direct knowledge of the matter said. China accounted for 6% of global wheat imports in the year to June 2024, according to U.S. Department of Agriculture data. With its outsized role in the market, the country's lower intake may pressure benchmark Chicago wheat prices, which remain below $6 a bushel after falling to a four-year low of $5.14 in July. The country is well-stocked after plentiful corn and wheat harvests and to support local prices that have fallen as a result it does not want new wheat to arrive until as late as April, the sources said. One of the sources, a Singapore-based trader at an international company that sells U.S. and Australian wheat into Asia, said he had direct knowledge of four shipments carrying around 240,000 metric tons, three from Australia and one from Canada, that Chinese buyers were trying to resell in Southeast Asia. The trader said he had heard from other traders that around 10 ships in total from Australia and Canada were being delayed resold, each carrying around 60,000 tons of wheat. "China has postponed the delivery time of several wheat cargoes that were to be shipped from Australia and Canada," he said. "There are ample supplies in the Chinese market and their local prices have fallen." A source at a major grain trader in Australia said he had direct knowledge of two wheat shipments booked for delivery to China in February, one of which has been delayed to April. "The other is sailing, but the buyer plans to divert a chunk (of the grain onboard) to Thailand." China has delayed or redirected a total of eight to 10 Australian shipments that were booked for delivery in January or February and has booked no shipments for March, he said. "China just doesn't want anything showing up until April," he said. Early last year, Chinese wheat importers cancelled or postponed about 1 million metric tons of Australian wheat cargoes as growing world stockpiles dragged down prices. Still, in the first three months of 2024, China imported 1.7 million tons of wheat from Australia, down from 2.5 million tons in the same period a year earlier, and 923,000 tons from Canada, up from 783,000 tons a year earlier, according to Chinese trade data accessed using Trade Data Monitor. Australia begins each year with freshly harvested wheat and has been China's main first-quarter supplier in recent years. China's state-run COFCO, which is the importer of most of these delayed or redirected cargoes, is paying the costs of delaying shipments, including charges to hold back grain, and will take any gain or loss from reselling grain, the source in Australia said. COFCO did not immediately reply to an email from Reuters requesting comment. "China wants to protect its farmers. After a good corn crop, they have more than enough corn for feed. So now all of a sudden the wheat they were importing for feed and flour has been wound back to just flour," the trader in Australia said. China's state stockpiler Sinograin said on Monday it plans to add new stockpiling sites in northeast China to expand purchases of domestic corn harvested in 2024. Sign up here. https://www.reuters.com/markets/commodities/china-has-delayed-or-redirected-600000-tons-wheat-imports-sources-say-2025-02-05/
2025-02-05 06:18
Q4 core profit $7.90 bln vs poll $7.71 bln Raises 2030 oil, gas output target by 10% Cuts 2030 renewables goal to 10-12 GW from 12-16 GW LONDON, Feb 5 (Reuters) - Equinor (EQNR.OL) , opens new tab on Wednesday raised its 2030 oil and gas output forecast and scaled back plans for renewable energy capacity expansion, while reporting a smaller-than-expected decline in profit for the final quarter of 2024. The Norwegian oil and gas producer said its adjusted earnings before tax for the October-December period fell to $7.90 billion from $8.56 billion a year earlier. That, however, beat the $7.71 billion expected in a poll of 24 analysts compiled by Equinor. "In 2030 expected (oil and gas) production is around 2.2 million barrels of oil equivalent per day, up from a previous expectation of around 2 million," Equinor said in a statement. The company reduced its 2030 target for renewable energy capacity to a level of between 10-12 gigawatt from 12-16 gigawatt previously expected. Equinor said it was "lowering (the) investment outlook for renewables and low-carbon solutions to adapt to market conditions and further strengthen value creation for shareholders". Equinor's Oslo-listed stocks have risen 4.7% year-to-date, lagging a 6% gain in European petroleum stocks (.SXEP) , opens new tab. Rival Shell (SHEL.L) , opens new tab, the first major energy company to report results last week, said its fourth-quarter adjusted earnings, its definition of net profit, nearly halved to $3.66 billion, missing analysts' expectations. In December, Equinor and Shell (SHEL.L) , opens new tab agreed to merge their British North Sea assets into a 50-50 joint venture that, if approved by regulators, will become the British North Sea's biggest independent producer. Equinor in 2022 overtook Russia's Gazprom (GAZP.MM) , opens new tab as Europe's biggest supplier of natural gas when Moscow's invasion of Ukraine upended decades-long energy ties. Norway now meets around one third of the continent's demand. In 2025, oil and gas output is expected to rise by 4% from 2024, Equinor said, adding that its giant Johan Sverdrup oilfield, Europe's largest, would keep producing at levels close to 2023 and 2024. Equinor had previously said the Sverdrup field, which can produce up to 755,000 barrels of oil per day, was to come off plateau production in early 2025. Equinor said its annual organic capital spending target for 2025 was set at $13 billion, below the previously indicated 2025-2027 spending of between $14 billion and $15 billion per year on average. The company expects total capital distribution, in the form of dividend and share buybacks, at $9 billion, in line with its previous guidance of $8 billion-$10 billion. The ordinary cash dividend for the fourth quarter was raised to $0.37 per share from $0.35 in the third. Sign up here. https://www.reuters.com/business/energy/equinor-q4-profit-slightly-beats-expections-2025-02-05/
