2024-12-16 19:09

BRUSSELS, Dec 16 (Reuters) - European countries and companies have a combined demand for around 15 billion cubic metres (BCM) of Russian gas next year via Ukraine, Slovakia's economy minister said on Monday. Slovakia and other countries receiving gas from Russia, transited via pipelines in Ukraine, are in talks to try to avoid those flows stopping when an existing transit contract expires at the end of the year. "All together, we are in volume about 15 BCM," Denisa Sakova told reporters, of the volume of gas the buyers were seeking. Slovakia has a long-term contract with Russia's Gazprom. Slovak Prime Minister Robert Fico said last week he aimed to secure continued eastern supplies to avoid paying more in transit fees for gas from other directions. Sakova said talks were ongoing between partners who could deliver the gas via Ukraine, with the aim of finding an agreement before the existing deal expires in two weeks. She declined to name the partners involved. Slovakia is hoping a deal could cover gas deliveries for two or three years. The European Union has set an aim to stop using Russian fossil fuels by 2027. "We are fully aware of this fact. But really, until 2027, somehow we have to fulfill the requirements of Slovak business and Slovak domestic household customers," Sakova said. The European Commission has told EU countries it expects the end of the Ukraine transit deal would not have a significant impact on European gas prices. It has said all EU countries receiving gas through the route have access to alternative supplies. Some EU diplomats, however, have raised concerns that an end to flows of Russian gas through the Ukraine route could prompt Moscow to bombard the pipeline infrastructure, disrupting Ukraine's own gas system. Moldova also receives Russian gas via Ukraine. Moldova's parliament voted on Friday to impose a national state of emergency to cope with a potential Russian gas cut-off. Sign up here. https://www.reuters.com/markets/commodities/european-buyers-seek-15-bcm-gas-via-ukraine-route-slovakia-says-2024-12-16/

2024-12-16 18:44

May seek exemption from listing rules to facilitate IPO FCA taking longer than usual to approve Shein IPO application How much Shein aims to raise from IPO not immediately known HONG KONG/LONDON, Dec 16 (Reuters) - Fast fashion retailer Shein is considering asking UK regulators to waive listing rules that require at least 10% of its shares to be sold to the public in its planned London flotation, two people with knowledge of the matter said. The company is exploring this option to facilitate its IPO, one of the people said. If granted, it would likely be the first time that a company in London has been allowed to list below the recent 10% rule. Singapore-headquartered Shein, which sells $5 tops and $10 dresses mostly made in China, in June filed confidentially with the Financial Conduct Authority (FCA) for a London listing. However, Britain's financial regulator is taking longer than usual to approve its application, Reuters reported last week. The people declined to be identified as they were not authorised to speak to the media. Shein declined to comment. Shein was valued at $66 billion in a fundraising round last year. A 10% flotation at that valuation would make the IPO worth $6.6 billion. The biggest European IPO this year was perfume and fashion company Puig's (PUIGb.MC) , opens new tab $2.9 billion deal, according to Dealogic. The current valuation of Shein and how much it is looking to raise via the London listing was not immediately known. London changed its listing rules in 2021 to boost the attractiveness of the venue for companies. It cut the proportion of shares an issuer is required to float to 10% from 25%, reducing potential barriers for large IPOs, the FCA said at the time. In July, Britain ushered in the biggest reform of company listing rules in more than three decades to help it compete more effectively with New York and the European Union for new issuers. Shein began to explore a listing on the London Stock Exchange early this year, Reuters reported in May, citing sources. The China-founded company's original plan to list in New York was derailed after opposition from U.S. lawmakers. Shein is also waiting for China's securities regulator to approve its plans for a London IPO, Reuters previously reported. Its revenues are expected to hit $50 billion this year, up 55% from 2023, according to Coresight Research. Sign up here. https://www.reuters.com/business/retail-consumer/shein-weighs-sale-less-than-10-company-london-ipo-sources-say-2024-12-16/

2024-12-16 16:03

Loonie touches weakest since April 2020 at 1.4268 Price of U.S. oil decreases 0.6% 10-year yield touches its highest since Nov. 28 TORONTO, Dec 16 (Reuters) - The Canadian dollar touched a 4-1/2-year low against its U.S. counterpart on Monday before recouping its losses and Canadian bond yields rose, as investors weighed the fiscal implications of the unexpected resignation of Canada's finance minister. The loonie was trading nearly unchanged at 1.4225 to the U.S. dollar, or 70.30 U.S. cents, after touching its weakest intraday level since April 2020 at 1.4268. Canada's Finance Minister Chrystia Freeland resigned over a policy clash with Prime Minister Justin Trudeau, dismissing his plans for increased spending as "political gimmicks". Freeland quit just hours before she was due to present a fall economic update to parliament, a document widely expected to show the minority Liberal government had run up a much larger 2023/24 budget deficit than predicted. "In many places in the world, the resignation of the finance minister would be a crushing blow to the currency but the market appears to have fully discounted a period of political uncertainty, and inevitable change in government," said Adam Button, chief currency analyst at ForexLive. Trudeau trails badly in polls ahead of an expected election in 2025. The U.S. dollar (.DXY) , opens new tab hovered close to a three-week high versus other major currencies, ahead of a week of central bank meetings in which markets expect the Federal Reserve to cut interest rates but signal a measured pace of easing for 2025. The price of oil , one of Canada's major exports, fell 0.6% to $70.88 a barrel as investors weighed weak consumer spending data in China, the world's largest oil importer. Canadian government bond yields moved higher across the curve. The 10-year was up 3.7 basis points at 3.215%, after touching its highest intraday level since Nov. 28 at 3.234%. Sign up here. https://www.reuters.com/markets/currencies/canadian-bond-yields-rise-loonie-swings-finance-minister-resigns-2024-12-16/

2024-12-16 14:21

Twenty three out of 27 analysts expect 200 bps hike Russia's benchmark interest rate last at 23% in 2002 Central bank's tight monetary policy provoked backlash Easing seen in the second half of 2025 MOSCOW, Dec 16 (Reuters) - The Russian central bank is expected to hike its key interest rate by another 200 basis points (bps) to 23% at its last rate-setting meeting of 2024 this week, according to a Reuters poll, as high inflation has been exacerbated by a weaker rouble. Twenty-three of 27 economists in the poll expect the 200 bps hike, while two anticipate a more moderate 100 bps increase. Two others predict an even more aggressive hike of over 200 bps. The central bank's benchmark interest rate was last at the 23% level in 2002. "The rate of price growth accelerated, and the rouble has shifted to a new, weaker equilibrium level of 100-plus against the dollar. This leaves the regulator with no other option but to raise the rate," said Oleg Kuzmin from Renaissance Capital. At the previous meeting on Oct. 25, the central bank hiked the rate by 200 basis points to 21%, the highest level since the early years of President Vladimir Putin's rule, when Russia was recovering from the chaos following the collapse of the Soviet Union. The move also brought the rate above the level seen during the market panic at the start of what Russia calls its special military operation in Ukraine in February 2022. The October hike provoked an angry reaction from business leaders who complained that with such a high cost of capital, any further investment did not make economic sense. Andrei Kostin, CEO of Russia's second-largest lender VTB, even suggested that in the context of high military expenditures and sanctions, the key interest rate was not fully effective as a monetary policy tool. CLOSE TO COMPLETION Russia's weekly data indicated that inflation shows no sign of slowing down despite the tightening and has already exceeded the central bank's full-year estimate of 8.5%, running at 8.8%. Economists polled by Reuters estimate 2024 full-year inflation to be between 9.3% and 10%. The Russian rouble lost up to 15% against the dollar in November after the U.S. imposed new financial sanctions that disrupted payments for Russian energy, creating a shortage of foreign currency in the domestic market. The rouble has since regained much of the lost ground, but volatility in the forex market persisted as markets adjusted to the sanctions. Most analysts now expect the rouble to stabilise at just above 100 to the dollar. The central bank's governor, Elvira Nabiullina, signalled that the regulator may start gradually cutting rates in 2025, provided there are no external shocks. Analysts said easing in the second half of 2025 was more likely. "I would not expect a cut in the key rate in the first half of 2025. However, scenarios with the first rate cut in the third quarter of 2025 I still consider realistic," said Dmitry Kulikov from ACRA ratings agency. "The market believes that the monetary tightening cycle is close to completion," Zenit Bank analysts said. Analysts noted that a slowdown in corporate lending growth in November to the lowest month-on-month value since the start of the year also suggested that the 200 bps hike this year was sufficient. "Such a decision will be a compromise between the accelerated current inflation rates in November and the significant slowdown in total lending," said Rodion Latypov from VTB. Sign up here. https://www.reuters.com/markets/rates-bonds/russias-key-rate-seen-climbing-by-another-200-bps-23-2024-12-16/

2024-12-16 13:33

OTTAWA, Dec 16 (Reuters) - Canadian housing starts rose 8% in November, beating market expectations, driven primarily by multi-unit starts in Quebec, Alberta and British Columbia, data from the national housing agency showed on Monday. The seasonally adjusted annualized rate of housing starts rose to 262,443 units from an upwardly revised 242,207 units in October, the Canadian Mortgage and Housing Corporation said. Economists expected the number to rise to 245,100 units in November. Sign up here. https://www.reuters.com/world/americas/canadian-housing-starts-rise-more-than-expected-november-2024-12-16/

2024-12-16 12:39

Dec 16 (Reuters) - Phillips 66 (PSX.N) , opens new tab said on Monday it would sell its 25% stake in the Gulf Coast Express pipeline in Texas to an affiliate of ArcLight Capital Partners for $865 million, setting the U.S. refiner on course to exceed its asset sale target. Despite a fall in refining profits, Phillips 66 has opted to maintain stable investor payouts by cutting down on costs and setting a divestiture target of $3 billion through non-core asset sales. The company had already sold fuel terminals, pipelines and a stake in a Switzerland retail joint venture to raise $2.7 billion before Monday's announcement. "We intend to continue to optimize the portfolio and rationalize non-core assets going forward," said Phillips 66 CEO Mark Lashier. It also forecast a reduction in refining segment expenditure to $822 million in 2025, compared with the $1.07 billion it expects to spend for the unit in 2024. U.S. refining margins are expected to stabilize next year, according to data from the Energy Information Administration, backed by an uptick in industrial demand and refinery closures, including Phillips 66's Los Angeles area plant. The company expects its overall expenditure to be $2.1 billion next year, compared with the $2.2 billion it had projected for 2024. Sign up here. https://www.reuters.com/markets/commodities/phillips-66-forecasts-lower-2025-spending-refining-unit-2024-12-16/