2024-12-05 11:23

ATHENS, Dec 5 (Reuters) - The crew of Panama-flagged cargo ship MV ISA STAR have been rescued in the Red Sea after sending a distress signal, the EU's Aspides naval mission said. "All crew members aboard the MV ISA STAR have been rescued and will be transported to Djibouti, the nearest safe port of call," Aspides said in a statement posted on Facebook. The vessel had reported flooding in the engine room and the master requested assistance, it said, as its crew of 20 were forced to abandon it. One maritime security source told Reuters that the ship experienced engine problems and another source said that it had reported an internal explosion. Details on the current condition of the vessel were not immediately available. The ship was about 100 nautical miles off the port of Hodeidah, Yemen, when it called for assistance, the sources said. Iran-aligned Houthi forces have launched attacks on international shipping near Yemen since November 2023 in solidarity with Palestinians in the Gaza war between Hamas and Israel. It was not clear if this incident was linked to Houthi activity. Sign up here. https://www.reuters.com/world/middle-east/rescue-operation-underway-cargo-vessels-crew-red-sea-2024-12-05/

2024-12-05 11:07

P&G buying more steel from Indian manufacturer Jindal-data Move could offset costs if Trump imposes steel tariffs P&G shifting away from Japanese, Swedish manufacturers-data NEW YORK, Dec 5 (Reuters) - Procter & Gamble (PG.N) , opens new tab has overhauled its supply chain for the tiny, extra-thin strips of stainless steel in its Gillette razors to source from India, a move expected to help protect its margins from any tariffs U.S. President-Elect Donald Trump may impose. The stainless steel the Gillette-brand razor maker uses is highly specialized to prevent nicks and cuts and is only produced in large quantities by a handful of companies, none of which are located in the U.S., P&G has told the U.S. Commerce Department in public filings. A Reuters analysis of import records over the past four years shows that P&G has shifted where it buys the stainless steel for its top grooming brands in the United States, its biggest market, to a cheaper Indian manufacturer, a move that may help it offset higher costs in Trump's second term. The Cincinnati-based company now primarily obtains the steel for Gillette from New Delhi-based Jindal Stainless, (JIST.NS) , opens new tab according to the U.S. import records for P&G subsidiaries, including Gillette. Investors view P&G as a top operator in the competitive consumer products industry, with its margins exceeding those of rivals like Kimberly-Clark. (KMB.N) , opens new tab It's a pattern P&G hopes to keep after Trump takes office in early 2025. During his first term, P&G faced $1.4 billion in external costs including tariffs that ate into profits. A P&G spokesperson confirmed that the company has worked with Jindal, adding that details of its relationships with business partners are competitively sensitive. A spokesperson added that "it would not be accurate to point to cost as the sole driver of any sourcing decision." Previously P&G bought mostly pricier Japanese and Swedish steel for Gillette, according to the import records, provided exclusively to Reuters by ImportYeti. Hefty tariffs during Trump's first term added to the costs of Japanese and Swedish steel, although P&G eventually secured an exemption from them. Trump, who has said "tariff" is his favorite word, has pitched a fresh roster of tariffs, targeting China, Mexico and Canada, putting consumer-product makers on the defensive. P&G's Chief Financial Officer Andre Schulten said during meetings with investors on November 21 that the company will have to adjust its supply chain as it sees how Trump implements tariffs. Despite years of underperformance, recent strategies to improve its grooming business have been working, the division's CEO, Gary Coombe, said. Making steel for shaving razors is labor-intensive, giving Indian manufacturers an edge on cost, said Markus Moll, managing director at Steel & Metals Market Research, an independent market research company. He estimates Jindal's steel is about 20-25% cheaper than competitors. He added that Jindal has been manufacturing the material for about 15 to 20 years for Indian clients. Jindal, which says it is the world's biggest maker of stainless steel for razor blades, has mainly supplied non-U.S. markets, an industry executive not permitted to speak to the media, said. Although Jindal has long had a relationship with P&G, P&G's imports from Jindal to the U.S. began in 2022, according to the records from ImportYeti, which compiles bills of lading. P&G imported at least 4,283,569 kilograms (4,721 U.S. tons) of stainless steel from Jindal over the past 36 months, according to the data. Jindal did not comment specifically on the steel used in razor blades, P&G or its Gillette razors. Abhyuday Jindal, managing director of Jindal Stainless, said in a statement that the manufacturer works with its customers to "create value in their business and using pricing as a lever is our last priority." Earlier this year, P&G said Jindal was a top supplier that "consistently performed at high levels," according to an internal company blog. The P&G spokesperson said that P&G constantly seeks new suppliers globally that can meet its needs, and that very few do. P&G has not made any substantive changes to its core suppliers, the spokesperson said. According to the data reviewed by Reuters, P&G has cut back on its imports from Japan's Proterial and Sweden's Alleima (ALLEI.ST) , opens new tab. In this year through October, its imports from Proterial were nearly 59% less than in 2023, while P&G has received no steel shipments from Alleima this year, the data shows. Gillette has been working with Proterial for more than 50 years, and Alleima for over 20, according to filings with the U.S. Commerce Department. Alleima did not respond to requests for comment. Proterial declined to comment. Grooming, P&G's smallest business by revenue, has faced years of struggles. During the pandemic, sales declined as men grew beards and shaved less. Before that, start-ups like Dollar Shave Club and Harry's were able to grab valuable market share from pricier Gillette. A four-pack of Gillette Labs Men's Razor Blade refills sells for nearly $29 at (TGT.N) , opens new tab Target.com, according to the retailer's website. Sign up here. https://www.reuters.com/markets/commodities/tariffs-loom-gillette-razor-maker-pg-sourcing-more-steel-india-2024-12-05/

2024-12-05 11:02

Dec 5 (Reuters) - A look at the day ahead in U.S. and global markets by Amanda Cooper. It's been exactly a month since the U.S. presidential election delivered victory for Republican Donald Trump and his proposed "America First" agenda. Markets have been driven in large part by the so-called "Trump trade" for the past couple of months - a dynamic that has boosted assets likely to benefit from his pledge to slap tariffs on the imports of major trading partners and slash spending and regulation, with particular emphasis on crypto. Bitcoin has finally vaulted above the $100,000 mark, having toyed with it for several weeks now, and is pulling all crypto boats higher, as a result. The market has taken the nomination of deregulation advocate Paul Atkins to run the Securities and Exchange Commission as another green light to pile into crypto. Ether has risen by 65% in the last month too, but typically, it is the super-volatile memecoins that have scored big. Peanut Squirrel coins, named for an Instragramming squirrel whose death reportedly caught Trump's interest, has gained nearly 2,500%, while Moo Deng tokens, named after the baby hippo and social media sensation in a Thai zoo, have gained 200%. Trump's pick of Tesla chief executive Elon Musk to lead his efforts to cut government spending have lifted shares in Musk's electric vehicle company by 50% in the last 30 days as well. With his proposals of big tariffs and tax cuts, Trump has fuelled a rally in the dollar, as investors factor in the likely boost to inflation that these measures could bring. But these have also powered a rally in U.S. equities to yet more record highs, as investors price in the possible positive impact on growth. One of the side-effects has been a wave of capital flowing into U.S. equities at the expense of share markets elsewhere. World stocks excluding the United States and its mega-cap companies have actually fallen 0.2% since Nov. 5. U.S. Treasury yields topped 4.5% in mid-November, as the Trump trade gathered momentum. But as November has given way to December, yields have retreated, falling to around 4.2%, which in turn has knocked some wind out of the dollar's sails too. The dollar index, which measures the performance of the U.S. currency against six others, has fallen nearly 4.5% in the last two weeks. The biggest victims of the Trump trade in currencies - the Mexican peso, the euro and the Chinese yuan, which all stand to take a hit from his proposed tariffs - are starting to recover. The peso, which fell as much as 2.7% in the wake of the election, has almost broken even, while the euro, for all the headwinds it faces at home on the economic and political front, has recovered some ground too in the last week or so. Bitcoin and Tesla are still red-hot right now, but as investors approach the year-end, they may be growing cooler towards a big part of the Trump trade. Key developments that should provide more direction to U.S. markets later on Thursday: * Initial weekly jobless claims * October international trade * Federal Reserve Bank of Richmond President Thomas Barkin addresses Charlotte Regional Business Alliance economic event Sign up here. https://www.reuters.com/markets/us/global-markets-view-usa-pix-2024-12-05/

2024-12-05 10:42

U.S. non-farm payrolls report due on Friday Gold awaits fresh data or stimuli to break out of its current range - analyst Traders see 70% chance of a 25-bps rate cut in December Powell says Fed can afford to be a little more cautious Dec 5 (Reuters) - Gold prices dipped on Thursday as U.S. Treasury yields firmed after the release of weekly jobless claims data, while markets awaited U.S. non-farm payrolls figures for fresh insights into the Federal Reserve's stance on interest rate cuts. Spot gold was down 0.7% at $2,630.30 per ounce, as of 02:03 p.m. ET (1903 GMT). U.S. gold futures settled 1% lower at $2,648.40. "We're in a period of stagnation, some range bound activity at the moment, searching for that next piece of data or that next stimuli that could push gold out of this range," said David Meger, director of metals trading at High Ridge Futures. Benchmark U.S. 10-year Treasury yields edged up 0.3%, while bitcoin catapulted above $100,000 for the first time on Thursday. The number of Americans filing new applications for unemployment benefits increased moderately last week, suggesting the labour market continued to steadily cool. Investors' focus now shifts to Friday's U.S. nonfarm payrolls, which is likely to increase by 200,000 jobs in the month after rising by only 12,000 in October, for further clarity on the interest rate path. A robust NFP number is more or less priced in and if we see weakness in the report, it could add some support to gold prices, said Ole Hansen, head of commodity strategy at Saxo Bank. Fed Chair Jerome Powell said on Wednesday the U.S. economy is stronger than expected and suggested a more cautious stance towards interest rate cuts. Traders are pricing in a 70% chance of a 25-basis-point cut at the Fed's Dec. 17-18 meeting. Bullion, which offers no yield, tends to perform well in low-interest-rate environments. Spot silver was down 0.5% at $31.12 per ounce, platinum fell 0.4% to $936.95 and palladium lost 1.4% to $964.40. "Auto catalyst demand substitution from palladium to platinum has been the key headwind for palladium and is likely to continue into 2026," ANZ analysts said in a note. Sign up here. https://www.reuters.com/markets/commodities/gold-edges-lower-spotlight-shifts-us-payrolls-data-2024-12-05/

2024-12-05 10:41

TOKYO, Dec 5 (Reuters) - Japan's Mitsui & Co (8031.T) , opens new tab is collaborating with TotalEnergies (TTEF.PA) , opens new tab and the Mozambique government to finalise plans for restarting construction of the $20 billion Mozambique liquefied natural gas (LNG) project, CEO Kenichi Hori said on Thursday. The project, led by TotalEnergies, has faced delays due to concerns over violent unrest in the region. "We are working closely with the operator Total and the Mozambique government to ensure security and finalise preparations for resuming construction," Hori told investors, adding the security situation in the area is showing signs of improvement. "Several key checkpoints remain, but we are now in the final stages of preparation to restart construction as soon as possible," he said. Highlighting the project's strong competitiveness, high-quality gas, and substantial reserves, he said that the Japanese trading company will move forward while carefully managing local risks. TotalEnergies CEO Patrick Pouyanne said in October that 70% to 80% of a $14 billion financing package underpinning the project has been reconfirmed by financiers. "We are waiting on the green light on financing from three credit agencies, some are in Western countries where rules on gas have changed ... as soon as that is in place we will move," Pouyanne said at the time. Mitsui's Hori also said it and its partners in the U.S. Cameron LNG are finalising details for a final investment decision on the expansion. "Once the FID is reached, the expansion will proceed in a competitive manner, which will be a core of our future LNG business," he said. Cameron LNG is owned by affiliates of Sempra Energy (SRE.N) , opens new tab, TotalEnergies, Mitsui and Japan LNG Investment LLC, a company jointly owned by Mitsubishi Corp (8058.T) , opens new tab and Nippon Yusen Kabushiki Kaisha (9101.T) , opens new tab. Mitsui expects LNG to continue to play a long-term role as a viable solution for its global energy transition, Hori said, pointing to its commitment to expand its LNG business. Sign up here. https://www.reuters.com/business/energy/mitsui-ceo-says-final-push-underway-with-totalenergies-revive-mozambique-lng-2024-12-05/

2024-12-05 10:14

French stocks rise, banks lead gains Safran down after new financial targets Arubis up on better-than-expected dividend proposal Dec 5 (Reuters) - European stocks hovered near one-month highs on Thursday as investors shrugged off concerns about political instability in France after lawmakers voted to topple Prime Minister Michel Barnier's government in a widely expected move. The pan-European STOXX 600 (.STOXX) , opens new tab rose 0.2% by 0945 GMT, extending gains for a sixth consecutive session. France's CAC 40 (.FCHI) , opens new tab climbed 0.3%, having touched a three-week high at one point. Barnier is expected to resign on Thursday, making him the shortest serving prime minister in modern French history. France now risks ending the year without a stable government or a 2025 budget, although the constitution allows special measures that would avert a U.S.-style government shutdown. "The reaction you're seeing is ultimately equity markets shrugging off this vote because in many ways it had been widely expected, so it hasn't really come as a shock," said Susannah Streeter, head of money and markets at Hargreaves Lansdown. The risk premium investors demand to hold French debt rather than German Bunds dropped from its highest levels in over 12 years as market participants had been expecting a muted reaction or even a "buy on rumours, sell on news" response to the fall of the government. President Macron, who is expected to deliver a televised address to the country at 1900 GMT, is expected to name a premier before a ceremony to reopen the Notre-Dame Cathedral on Saturday. Major French lenders rose, with BNP Paribas (BNPP.PA) , opens new tab, Societe Generale (SOGN.PA) , opens new tab and Credit Agricole (CAGR.PA) , opens new tab up between 1.7%% and 2.8%. German copper producer Aurubis (NAFG.DE) , opens new tab jumped 14% after a better-than-expected dividend proposal. Shell (SHEL.L) , opens new tab fell 1% after the British oil major and Norway's Equinor (EQNR.OL) , opens new tab said they would merge their British offshore oil and gas assets into an equal joint venture. Safran (SAF.PA) , opens new tab fell 4.9% after the French jet engine maker issued new financial targets. French oil firm TotalEnergies (TTEF.PA) , opens new tab rose 1% after RBC upgraded its shares to "outperform" from "sector perform". Sign up here. https://www.reuters.com/markets/europe/european-stocks-edge-higher-investors-weigh-impact-french-govt-collapse-2024-12-05/