2025-01-30 10:02
Peru's trade surpluses boost foreign currency reserves to $83 billion Sol's stability attracts neighboring countries like Bolivia and Brazil Peru's low inflation and interest rates support sol's strength LIMA, Jan 30 (Reuters) - Peru's sol has become Latin America's most stable currency, shaking off political turmoil in the nation that's had five presidents in as many years and seen deadly protests. The reason: a growing mountain of dollars the copper-rich Andean country has accumulated on the back of major trade surpluses that hit a record $24 billion last year. That has in turn helped Peru build up foreign currency reserves of some $83 billion - some 30% of the country's GDP - boosting investor sentiment and giving the government huge firepower to support the sol. "With such a quantity of dollars in the economy the exchange rate does not move," Economy Minister Jose Arista told Reuters. "No other country in the region has that." He pointed to data that showed a marginal depreciation of the sol against the dollar over the last year and 5.5% since the turn of the millennium - the strongest in the region. The currency now trades at 3.72 to the U.S. dollar. "The exchange rate will be there fluctuating between 3.72 soles or 3.78 soles and will move within that," said Arista. Data from Peru's central bank shows the country's positive trade balance has grown steadily for almost a decade, and has tripled in the last five years, driven by mineral exports and high global prices for metals like copper. Peru also has a relatively low annual inflation rate of around 2%, the lowest in Latin America. The benchmark interest rate is 4.75%, again one of the lowest in the region. The sol "is the exchange rate that has moved the least in Latin America for over 20 years. That gives confidence to any savers in a neighboring country," Arista said. SEEKING REFUGE IN THE SOL Amid a strong global dollar, the sol ended last year with a depreciation of just over 1%, data compiled by Reuters show, but that was far better than regional neighbors. Arista said that the currency's stability had even made it a go-to tender in some neighboring South American countries. Bolivians, facing an acute shortage of the dollar reserves at home, are using the sol as a safe-haven currency and referring to it as the "cholar", a play on a slang term for Andean peoples and the Spanish word for dollar. "Their exchange rate goes up and down, with a lot of uncertainty, and they seek refuge in a more stable currency like the Peruvian sol," said Arista referring to Bolivia. "And in Brazil they also use it, on the border with Peru." Sign up here. https://www.reuters.com/markets/currencies/perus-dollar-mountain-lets-sol-currency-shine-among-latam-peers-2025-01-30/
2025-01-30 07:51
JOHANNESBURG, Jan 30 (Reuters) - South Africa's rand gained on Thursday after data showed U.S. economic growth slowed in the fourth quarter, while the South African Reserve Bank cut its main lending rate for the third time in a row. At 1801 GMT, the rand traded at 18.4525 against the U.S. dollar , about 0.7% stronger than its previous close. The dollar last traded about 0.1% weaker against a basket of currencies. The world's biggest economy recorded softer than expected economic growth for the fourth quarter, which supported the rand's momentum, analysts said. Domestic-focussed investors looked to South Africa's central bank on Thursday, which cut its main lending rate (ZAREPO=ECI) , opens new tab by 25 basis points to 7.50%, as expected. The central bank placed emphasis on the uncertain global backdrop and said it had modelled the potential impact of a trade war. Also on Thursday, Statistics South Africa data showed producer inflation (ZAPPIY=ECI) , opens new tab was at 0.7% year-on-year in December. The country recorded a budget surplus of 21.38 billion rand in December, National Treasury data showed. On the Johannesburg Stock Exchange, the blue-chip Top-40 index (.JTOPI) , opens new tab closed about 0.4% up. South Africa's benchmark 2030 government bond was slightly weaker, with the yield at 9.01%. Sign up here. https://www.reuters.com/markets/currencies/south-african-rand-stable-ahead-rate-decision-2025-01-30/
2025-01-30 07:39
LONDON, Jan 30 (Reuters) - Glencore (GLEN.L) , opens new tab on Thursday reported lower copper, cobalt, zinc, nickel and thermal coal production in 2024, in line with guidance. The company said it produced 951,600 metric tons of copper in 2024, down 6% from 1.01 million tons in 2023, the lower end of its outlook of between 950,000 and 1.01 million tons. Copper is used in electric vehicle wiring and batteries, green energy plants and data centres. Grade erosion at existing mines is expected to exacerbate a predicted supply gap caused by rising demand for the energy transition. Glencore said it will provide production guidance for 2025 and beyond at its annual financial results on Feb. 19. It had previously said it expects its full-year marketing earnings before interest and tax (EBIT) in the $3 billion-$3.5 billion range, around the top end of its long-term forecast range of $2.2 billion-$3.2 billion. The trading division, whose profit hit a record $6.4 billion in 2022, includes coal, oil, liquefied natural gas and related products, as well as metals. The miner has kept its coal business after concluding the purchase of Teck Resources' (TECKb.TO) , opens new tab coking coal assets and securing backing from a majority of its investors who see lucrative earnings from the fossil fuel. Its 2024 steelmaking coal production increased to 19.9 million tons from 7.5 million tons. Glencore is one of the largest producers and exporters of thermal coal, mining 99.6 million tons in 2024, down from 106.1 million tons in 2023. Sign up here. https://www.reuters.com/markets/commodities/glencore-reports-lower-metals-production-2024-2025-01-30/
2025-01-30 07:36
Q4 profit of $3.66 bln, misses estimates Shell announces $3.5 bln share buyback, raises dividend by 4% 2025 capex to be lower than 2024's $21 bln Full-year profit down 16% to $23.72 bln Jan 30 (Reuters) - Shell (SHEL.L) , opens new tab on Thursday reported a 16% drop in 2024 annual profit as a result of weaker oil and gas prices and demand while further increasing shareholder returns in a sign of confidence in its strategy of refocusing on its most profitable sectors. The oil major announced a 4% dividend increase and a $3.5 billion share buyback for the current quarter, making this the 13th consecutive quarter of at least $3 billion of share repurchases. Its shares gained more than 1% even as the group reported that its 2024 adjusted earnings, its definition of net profit, fell to $23.72 billion from $28.25 billion in 2023, dented by narrower liquefied natural gas (LNG) trading margins, lower oil and gas prices, and weaker refining margins. The annual earnings fell short of a $24.64 billion consensus compiled by LSEG and $24.11 billion forecast by analysts polled by Vara Research. Shell, the first major energy company to report results, said fourth-quarter earnings nearly halved from previous year to $3.66 billion, also missing analysts' expectations. "As expected, Shell reported 4Q results this morning which showed relatively soft earnings, but continued strong cash generation," RBC Capital Markets analyst Biraj Borkhataria said in a note, also highlighting the consistency with which the group has been returning cash to shareholders. In his prepared remarks, CEO Wael Sawan said the share buybacks were "underpinned by the significant progress that we are making as an organisation." Sawan has been focused on cutting costs and pivoting the company back to its most profitable sectors — oil, gas, and biofuels — while shifting away from renewable power. The world's leading oil and gas companies experienced a decline in profits through 2024, following record earnings in the previous two years, as energy prices stabilised and oil demand weakened. Shell also expects 2025 capital expenditure to fall below last year's $21 billion, with more details to be shared at its capital markets day in March. Shell's refining operations reported an adjusted loss of $229 million in the chemicals and products unit, compared to a $29 million profit last year. Refining margins weakened globally due to reduced economic activity and new refineries opening in Asia and Africa. In the fourth quarter, Shell ran its refineries at 76% capacity, and said it expected to increase that to 80-88% in the first quarter. Shell also said that it did not have a timeline for the arbitration proceedings regarding LNG supply from Venture Global's (VG.N) , opens new tab Calcasieu Pass facility. Venture Global, whose $58 billion market debut fell short of high expectations last week, began generating proceeds in 2022 when its first facility, Calcasieu Pass, started production. However, the lengthy testing and optimising process before commercial operation has led to contract disputes with customers, including BP (BP.L) , opens new tab, Shell and Italy's Edison (EDNn.MI) , opens new tab, over non-receipt of contracted cargoes. "Delaying those cargoes simply means that we have to go out and buy higher priced spot cargoes to meet demand and ultimately, it impacts end consumers," Shell Chief Financial Officer Sinead Gorman told reporters on Thursday. Sign up here. https://www.reuters.com/business/energy/shells-fourth-quarter-profit-falls-366-billion-2025-01-30/
2025-01-30 07:02
Millions of Hindus take "holy dip" day after stampede Stampede at Maha Kumbh festival killed nearly 40 Authorities probe incident, improve crowd management Opposition blames mismanagement, urges better festival arrangements PRAYAGRAJ, India, Jan 30 (Reuters) - Millions of devout Hindus thronged the northern Indian city of Prayagraj on Thursday for the Maha Kumbh festival, a day after dozens died in a stampede at the largest gathering of humanity in the world. Train and bus stations in the city saw a surge in crowds as people continued to arrive for the festival, although some devotees remained nervous after the deadly crush. Krishna Soni, a student from the western state of Rajasthan's Bikaner city, and his family of eight linked themselves together with string to ensure they would not lose each other in the massive crowd. "We are walking very carefully and trying to avoid the crowded areas," he told Reuters. Police said 30 people were killed in Wednesday's stampede and 60 were injured. Sources said the death toll was more than 50 and Reuters counted at least 39 bodies in the morgue, but police said not all may have been killed in the stampede. "Many people die here everyday due to various reasons so those extra dead bodies could have been from other cases... The injured are totally out of danger," senior police officer Vaibhav Krishna told Reuters. While authorities said there was just one stampede on Wednesday, witnesses said there had also been a second pre-dawn incident in another part of the festival area on the same morning. Ambulance driver Karan Kumar told Reuters that police had called him between 3.30 a.m. and 4 a.m. on Wednesday morning and he transported nine people to hospital, who all "looked dead". A police guard who did not want to be identified said a second stampede had occurred but "help reached in time" and the situation was contained. Senior police officers did not respond to calls from Reuters seeking comment. Sachchidanand Pandey, spokesperson for Kumbh police chief Rajesh Dwivedi, said there was no second stampede. ADDITIONAL CROWD CONTROL MEASURES Authorities have ordered a probe into the incident, which occurred when people surged towards the confluence of three sacred rivers - Ganga, Yamuna, and the mythical Saraswati believed to flow underground - to take a dip. Harsh Kumar, the retired judge heading the probe panel, told news agency ANI: "We are expected to submit the report within a month," . On Wednesday, more than 76 million people took what is called a "royal dip" - taken on days considered more sacred - in the river waters until 8 p.m. (1430 GMT). Devout Hindus believe taking a dip at the river confluence absolves them of sins, and during the Kumbh also brings salvation from the cycle of birth and death. Three more "royal dips", which attract large crowds, are scheduled before the festival ends on Feb. 26. On Thursday, more than 9 million people took a holy dip by 10 a.m (0430 GMT), officials said, but the situation remained "under control". New steps would be taken to prevent such incidents, they said. "We will be dividing the entire area into many more sectors, which will have additional forces," Krishna said, adding that devotees would also be requested to go to other banks instead of coming only to the confluence. The Kumbh Mela - held every 12 years - is expected to draw some 400 million devotees in 2025, officials estimate. The Haj pilgrimage in Saudi Arabia, in comparison, drew 1.8 million people last year. Opposition leaders and newspaper editorials have blamed the stampede on mismanagement and called for better crowd planning to prevent such incidents. The festival is taking place at a 4,000 hectare (9,900 acre) temporary township created for the purpose on the river banks - the size of 7,500 football fields. Around 150,000 tents have been erected to accommodate devotees along with almost an equal number of toilets. Sign up here. https://www.reuters.com/world/india/india-orders-probe-into-kumbh-festival-stampede-that-killed-dozens-2025-01-30/
2025-01-30 06:51
ABU DHABI, Jan 30 (Reuters) - Saudi Arabia's economy returned to growth in 2024, with real gross domestic product increasing 1.3% compared to the previous year, preliminary government data released on Thursday showed, with non-oil sector activities lifting overall GDP. GDP growth surged 4.4% in the fourth quarter versus the same period a year earlier, estimates from the General Authority for Statistics showed, the highest quarterly growth rate in two years, with non-oil activity increasing 4.6%. Non-oil growth vastly outperformed overall GDP in 2024 as well, increasing 4.3% while oil activities declined 4.5% and government activities grew 2.6%. The Saudi economy contracted 0.8% in 2023 as oil production cuts and lower oil prices hit growth in the world's biggest crude exporter. Extended cuts to oil production among the OPEC+ member states, of which Saudi Arabia is a top member, have continued to weigh on GDP growth in the kingdom. The International Monetary Fund (IMF) has lowered its 2025 GDP growth projection for Saudi Arabia to 3.3%, mainly due to extended oil production cuts, while also trimming its forecast for 2026. It had estimated 2024 growth for the Gulf state at 1.4%, above the Saudi government's own estimate of 0.8%. "We need to be careful when we look at GDP as a measure for growth, because you need to look at other indicators," Finance Minister Mohammed al Jadaan said during the World Economic Forum in Davos earlier this month. "The total GDP number doesn't really matter. Our focus is really the non-oil GDP and non-oil GDP has been growing very healthily over the last few years; we are likely to see that growth escalating in the medium term." The kingdom, host to major global sporting events in the next decade, is under tight deadlines to deliver on massive infrastructure projects as part of its economic transformation objectives to wean itself off hydrocarbon income. It has forecast a fiscal deficit of $27 billion in 2025 and foresees a deficit equivalent to about 3% of GDP over the next few years as it boosts spending and investments in domestic projects. Sign up here. https://www.reuters.com/world/middle-east/saudi-arabia-gdp-grew-13-2024-govt-estimate-shows-2025-01-30/
