2024-12-10 07:40

BEIJING, Dec 10 (Reuters) - Starbucks (SBUX.O) , opens new tab China has appointed its first Chief Growth Officer (CGO), Chinese media outlet Late Post reported on Tuesday. The media outlet said the company has hired Tony Yang, former partner and president of digital marketing firm Tezign, to the role. The U.S. coffee giant and Tezign did not immediately respond to Reuters' request for comment. The appointment comes after a recent management reshuffle at the unit. In September, the company said Molly Liu would become its sole chief executive officer of Starbucks China. Belinda Wong, who was co-CEO, would remain as chairwoman. Starbucks is facing intensifying competition in the Chinese market where local, cheaper brands such as Luckin and Manner have grabbed market share. In the fiscal year ended Sept. 29, the coffee chain reported that China comparable store sales declined 14%, with both sales and prices falling — the average price dropped by 8%, and same-store transactions decreased by 6%. China is Starbucks second-largest market besides the U.S., with 7,596 stores across the country by September. ($1 = 7.2405 Chinese yuan) Sign up here. https://www.reuters.com/business/retail-consumer/starbucks-appoints-first-china-chief-growth-officer-media-2024-12-10/

2024-12-10 07:28

Russian exports via Ukraine to Europe stable Austria from Slovakia nominations up 15.7% Austria in focus after Gazprom halted OMV supplies in mid-Nov MOSCOW/PRAGUE, Dec 10 (Reuters) - Russian gas exports to Europe via Ukraine were stable on Tuesday while nominations, or requests, to Austria from Slovakia jumped by 15.7% from Monday, hitting their highest since Nov. 15, data showed. Russian gas supplies to Austria have been in focus since mid-November after Russian supplier Gazprom (GAZP.MM) , opens new tab halted supply to Vienna-based energy company OMV (OMVV.VI) , opens new tab over a contractual dispute. Other companies stepped in to buy the volumes previously allocated to OMV, keeping flows steady. Gazprom said it would send 42.4 million cubic metres (mcm) of gas to Europe via Ukraine on Tuesday, the same volume as on Monday. Nominations to Austria from Slovakia rose by 15.7% from Monday while nominations to the Czech Republic from Slovakia fell slightly, data from transmission system operator Eustream showed. Nominations for Slovakia from Ukraine rose to 431,702 megawatt hours on Tuesday, up by 3.6% from Monday and the highest volume since November 30. Sign up here. https://www.reuters.com/business/energy/russian-flows-through-ukraine-unchanged-austria-nominations-up-2024-12-10/

2024-12-10 07:18

Chinese crude imports show first annual growth in 7 months Hedge funds buying on talk of winter demand in Europe Syrian rebels setting up government; oil sector to reopen HOUSTON, Dec 10 (Reuters) - Oil prices rose on Tuesday as markets looked to rising demand in China, the world's largest buyer, and possible tight supply in Europe this coming winter and away from the overthrow of Syria's president. Brent crude futures settled at $72.19 a barrel, up 5 cents or 0.07%. U.S. West Texas Intermediate finished at $68.59 a barrel, up 22 cents or 0.32%. Both benchmarks had risen more than 1% on Monday. Support came from reports that China will adopt "appropriately loose" monetary policy in 2025 as Beijing tries to spur economic growth. This would be the first easing of its stance in 14 years, though details remain thin. Chinese crude imports also grew annually for the first time in seven months, jumping in November from the year-earlier period. The increase, however, "was more a function of stockpiling than demand improvement," said Tamas Varga of oil broker PVM. "The economy will only be stimulated by improving consumer sentiment and spending, by a rise in domestic aggregate demand echoed in a healthy increase in consumer inflation," he added. Speculation about winter demand was also a factor, said Phil Flynn, senior analyst with Price Futures Group. "Hedge funds are starting to buy on tightness of supply in European markets this winter," Flynn said. In Syria, rebels were working to form a government and restore order after the ousting of President Bashar al-Assad, with the country's banks and oil sector set to resume work on Tuesday. "The tensions in the Middle East seem contained, which led market participants to price for potentially low risks of a wider regional spillover leading to significant oil supply disruption," IG market strategist Yeap Jun Rong said. While Syria itself is not a major oil producer, it is strategically located and has had strong ties with Russia and Iran. Oil prices could receive a boost if the U.S. Federal Reserve comes through with an expected quarter-percentage-point cut to interest rates at the end of its Dec. 17-18 meeting. That could juice oil demand in the world's biggest economy, though traders are waiting to see if this week's inflation data derails the cut. Sign up here. https://www.reuters.com/markets/commodities/oil-prices-ease-geopolitical-risk-china-policy-stance-check-losses-2024-12-10/

2024-12-10 06:59

KUALA LUMPUR/MUMBAI, Dec 10 (Reuters) - Malaysia's palm oil stockpiles slipped in November for a second consecutive month, as production dropped more than expected to its lowest level for the month in four years, according to the country's industry regulator on Tuesday. The drop in inventories could fuel the rally in benchmark futures , which are already near their highest levels in about 2-1/2 years. Malaysia, the world's second-largest palm oil producer after Indonesia, is at the center of this trend. Malaysia's palm oil stocks at the end of November fell 2.6% to 1.84 million metric tons from the prior month, the Malaysian Palm Oil Board (MPOB) said. Crude palm oil production declined 9.8% in November to 1.62 million tons, the lowest for the month since 2020, while palm oil exports plunged 14.7% to 1.49 million tons, the board said. A Reuters survey had forecast inventories at 1.79 million tons, with output seen at 1.69 million tons and exports at 1.52 million tons. The MPOB data for November is slightly bearish for the market, as inventories dropped lower than forecast due to a sharp drop in exports, said Anilkumar Bagani, research head of Mumbai-based vegetable oil broker Sunvin Group. "Palm oil is struggling to attract fresh buying from destinations markets due to its vast premium over competing soyoil," he said. Palm oil usually trades at a discount to soybean oil and sunflower oil, but is currently holding a premium over these competing oils. Initial reports suggest that production would be lower even in December due to excessive rains, but exports were also low, said a New Delhi-based dealer with a global trade house. The market is also focusing on Indonesia's biodiesel mandate, which is kicking off from January, and could lower exports from the top producer, the dealer said. Following is a breakdown of the MPOB figures and Reuters estimates for November (volumes in tons): * Indicates revised figures by the Malaysian Palm Oil Board Sign up here. https://www.reuters.com/markets/commodities/malaysian-palm-oil-inventories-drop-nov-output-hits-4-year-low-2024-12-10/

2024-12-10 06:53

Dollar edges up before Wednesday inflation data readout Investors eyeing ECB policy meeting Markets price in 86% chance of 25-bps Fed rate cut next week Aussie falls after RBA tone on inflation China's Central Economic Work Conference in the spotlight NEW YORK, Dec 10 (Reuters) - The dollar rose on Tuesday ahead of U.S. inflation data that could offer clues about the Federal Reserve's monetary-easing path, while analysts assess the likely impact of President-elect Donald Trump's policies when he begins his second term. The Australian dollar dropped sharply against the U.S. dollar as the Reserve Bank of Australia softened its tone on the inflation outlook. Its rally the day before sparked by China stimulus pledges also tapered off after weak Chinese trade data. Money markets are pricing an 86% chance of a 25-bps rate cut by the U.S. Federal Reserve next week, but investors will still be looking closely at an expected readout of Consumer Price Index data on Wednesday. "Obviously the market's kind of nervous about a stronger print, which might lead to a slightly more hawkish outlook on the Fed, or maybe a little bit of a repricing," said Brad Bechtel, global head of FX at Jefferies. "I think the market is looking to see if CPI influences the decision on the December meeting, which right now is pretty much close to 100% priced, but not 100% priced." The U.S. dollar rose 0.47% to 151.925 yen . The dollar index , which measures the currency against the yen and five other major peers, rose 0.23% to 106.4. Market participants see little action before a busy second half of the week with the U.S. data and European Central Bank policy meeting. An ECB quarter-point cut is baked in, but investors will focus on the communication, which could provide clues about the central bank's future moves. The euro dropped 0.27% to $1.0526. The Aussie fell 0.93% to $0.6381, after earlier dropping to its lowest level since August. It rose 0.8% the previous day after China pledged an "appropriately loose" monetary policy next year. "If we can get Chinese stocks to rally, China-sensitive commodities like copper to rally, that could depress the U.S. dollar a little bit," said Erik Bregar, director of FX & precious metals risk management at Silver Gold Bull. "You can feel there's a lot of pressure over there to do something." China's exports grew at a slower pace in November, while imports unexpectedly shrank, affecting expectations for the Australian economy, as China is its largest trading partner. Chinese equities eased gains while Hong Kong stocks declined as the initial optimism over Beijing's policy shift faded. The RBA held rates steady as expected, but noted the board had gained "some confidence" inflation was heading back to target. "A full pricing-in (of a rate cut) over the next few weeks would weigh further on the Australian dollar," said Volkmar Baur, forex strategist at Commerzbank, recalling that two labour market reports and the inflation figures for the fourth quarter will be published before the next policy meeting in February. The New Zealand dollar dropped in sympathy with the Aussie, declining 1.1% to $0.5801. Investors will closely watch China's closed-door Central Economic Work Conference this week, which sets key targets and policy intentions for next year. The yuan was last at 7.2602 per dollar in offshore trading , supported by Monday's surprise shift in Beijing's monetary policy stance toward more easing to boost the ailing economy. Elsewhere, the Bank of Canada and the Swiss National Bank decide policy on Wednesday and Thursday, respectively, with deep rate cuts expected from both. Against Canada's loonie , the U.S. dollar rose to its strongest level since April 2020 at C$1.4165. Sign up here. https://www.reuters.com/markets/currencies/dollar-edges-higher-before-cpi-aussie-steady-rba-decision-looms-2024-12-10/

2024-12-10 06:32

RBA holds rates steady, softens hawkish tone on rates Australian dollar falls, bond futures rally Markets now see 57% for Feb easing, April cut fully priced SYDNEY, Dec 10 (Reuters) - Australia's central bank is getting closer to joining its peers in cutting interest rates, having sat tight for over a year now, but much will depend on the data to decide whether it can move as early as February. Wrapping up its December policy meeting, the Reserve Bank of Australia kept the cash rate unchanged at 4.35% but softened its hawkish stance. The statement omitted a previous line that the RBA Board was "not ruling anything in or out" as well as policy needing to remain restrictive. "Recent data on inflation and economic conditions are still consistent with (November) forecasts, and the Board is gaining some confidence that inflation is moving sustainably towards target," the RBA Board said in a statement. The Australian dollar fell 0.9% to $0.6380 and there-year bond futures rallied 9 ticks to 96.289, the highest since October. Swaps now imply there is a 57% chance of a rate cut in February, with a first easing more than fully priced in by April next year. Markets were poised for a steady outcome, but some had bet the RBA could take a dovish turn after data showed economic growth in the third quarter was surprisingly weak. Wage growth has also underwhelmed even though the labour market has shown resilience partly underpinned by rising public sector jobs. When asked about the prospects of a cut in February, RBA Governor Michele Bullock said she does not "actually know", adding that there would be the quarterly inflation data, as well as the labour market and consumption indicators before the decision. "All I'd say is we're watching the data," said Bullock. "We think things so far are moving in line with our forecasts and if they continue to move in line with our forecasts then at some point, we're going to be convinced that inflation is coming back to the band and we will be in a position to consider that." Bullock said the board did not consider a rate cut at Tuesday's meeting, adding that it took a deliberate decision to change the language in the statement in response to the softer economic data. Headline inflation slowed to 2.8% in the third quarter, back in the target band, but that was thanks to temporary government rebates on electricity bills, while core inflation was stubborn at 3.5%. PIVOT TO FEB RATE CUT? The RBA has held its policy steady for over a year now while other global policymakers, including the U.S. Federal Reserve, have started cutting rates from their elevated levels. The central bank has said that the current restrictive rate of 4.35% - up from 0.1% during the pandemic - is required to bring inflation to its target band of 2-3%. The National Australia Bank, which tipped a cut in May, said they cannot rule out a move in February if data is especially weak while Citi Australia still is of the view that the bar to a cut in February is high. The Commonwealth Bank of Australia concurred while tipping a February rate cut. "We are encouraged by today’s statement for our call for a February rate cut. But we are not across the line yet," said Gareth Aird, head of Australian economics at CBA. The RBA's dovish turn came hours after a survey from the National Australia Bank showed that business conditions slid to the lowest since late 2020 in November, suggesting the economy hasn't picked up momentum as expected this quarter. An anticipated rebound in consumer spending has yet to appear either, with consumers largely holding onto the windfall from the government's tax cuts and paying off debt, according to bank research. "The RBA left no doubt that it isn’t happy with current levels of core inflation but... hopes have risen that the first cut could be in February after all," Sean Callow, a senior analyst at ITC Markets. "Removing the 'not ruling anything in or out' line is very welcome and probably overdue." Sign up here. https://www.reuters.com/markets/australias-central-bank-ends-2024-with-dovish-pivot-jolting-markets-2024-12-10/