2024-12-05 10:10

MUMBAI, Dec 5 (Reuters) - The Indian rupee ended little changed following a rangebound trading session on Thursday, with market players speculating whether the country's central bank will initiate an interest rate easing cycle on Friday to stimulate economic growth. The rupee , ended at 84.7325 to the U.S. dollar, from Wednesday's close of 84.74. The domestic unit traded with a slight upside bias during Thursday's session, tracking similar moves in Asian peers on growing expectations that the U.S. Federal Reserve will lower rates this month. The rupee hit an all-time low of 84.7575 on Tuesday, weighed down by a slowdown in India's growth in the July-September quarter, and uncertainty over the impact of U.S. President-elect Donald Trump's policies on emerging market currencies. A majority of economists expect the Reserve Bank of India to keep interest rates on hold on Friday, retaining its focus on bringing inflation down even as global market volatility left other major central banks poised to ease policy. A handful, however, reckon that recent growth data will prompt the RBI to cut rates. Without signs of growth stability, pressure on the external sector will continue, Nomura economists said in a note, adding that the rupee's recent weakness will not deter the RBI from cutting rates. If there is no rate cut but a reduction in the Cash Reserve Ratio (CRR), which seems likely at this point, then that could provide some temporary relief to the rupee, said Jigar Trivedi, a senior analyst at Reliance Securities. Trivedi pegs the rupee in an 84.80 to 85.00 range through December. The RBI's rate decision will be followed by the U.S. November monthly jobs report on Friday. The non-farm payrolls report will provide cues on whether the Fed will lower rates at its Dec. 17-18 meeting. Currently, the odds are heavily in favour of the Fed cutting rates by 25 basis points. Sign up here. https://www.reuters.com/markets/currencies/rupee-little-changed-cenbank-rate-decision-growth-commentary-looms-2024-12-05/

2024-12-05 09:55

LONDON, Dec 5 (Reuters) - More than half of British employers plan to raise their prices and cut jobs in response to the new government's first budget, according to a survey published by the Bank of England on Thursday. Almost 60% of firms expected to lower their profit margins to cope with an increase in social security contributions that was announced by finance minister Rachel Reeves on Oct. 30, the Monthly Decision Maker Panel survey showed. But 54% expected to raise prices and the same proportion said they would lower employment, while 38% expected to pay lower wages than they otherwise would have done. The BoE is watching closely for how firms respond to the increase in social security costs as it tries to assess how much inflation pressure is likely to remain in the British economy. The survey's measure of expectations for wage growth - something the BoE watches closely as it considers when to cut interest rates again - cooled a bit further, dropping by 0.1 percentage point to 4.0% on a three-month moving-average basis in November. It was the weakest reading since at least mid-2022, when comparable records started. For November alone, the expected increase in pay slowed to 3.8% from 4.1% in October. "Ordinarily this would be a clear dovish signal, increasing the BoE’s confidence that moderating underlying pressures will bring inflation down," JP Morgan economist Allan Monks said. "However, this shift does appear related to the national insurance tax rise. At the same time, there was a clear step up in expected inflation." The survey showed companies' expectations for Britain's consumer price inflation in the year ahead rose to 2.7% in the three months to November from 2.6% in the three months to October. In November alone, those expectations jumped to 2.8% from 2.5% in October. BoE Governor Andrew Bailey reiterated on Wednesday that he expected the central bank would cut borrowing costs only gradually as there was "still a distance to travel" to get inflation fully under control. Sign up here. https://www.reuters.com/world/uk/uk-firms-trim-wage-growth-expectations-boe-survey-shows-2024-12-05/

2024-12-05 08:02

Shell, Equinor to each own 50% of joint venture Will produce over 140,000 barrels of oil equivalent per day Will be biggest independent oil producer in British North Sea Output could rise to 220,000 boed in 5 years, Equinor says No IPO plans, Shell says COPENHAGEN/LONDON/OSLO, Dec 5 (Reuters) - Shell (SHEL.L) , opens new tab and Norway's Equinor (EQNR.OL) , opens new tab will merge their British North Sea assets to form the ageing basin's largest oil and gas company, the pair said on Thursday. The 50-50 joint venture, to be based in Aberdeen, Scotland, will see the companies pool resources and spending, with cost cuts and an improved tax position boosting the profitability of the assets. "The new company will...provide a long-term sustainable future for individual oil and gas fields and platforms, helping extend the life of this crucial sector for the benefit of the UK," Shell and Equinor said in a statement. Combined output is expected to rise to between 200,000-220,000 barrels of oil equivalent per day (boed) in the next five years - from over 140,000 in 2025 - as new projects including the giant Rosebank oil development come on stream, Philippe Mathieu, Equinor's head of international oil and gas production, told Reuters. Shell was a North Sea pioneer, producing gas in the Leman field in 1968, three years before it discovered the Brent oilfield, which became one of the basin's most important fields, eponymous with the global oil benchmark. The new entity would be the British North Sea's biggest independent producer, but there is no intention to conduct an initial public offering, Shell Upstream Director Zoe Yujnovich told reporters, adding that the JV will raise its own debt. Oil companies have been steadily exiting Britain's North Sea basin in recent decades with production declining from a peak of 4.4 million boed at the start of the millennium to around 1.3 million boed today. The British government's imposition of a windfall tax on North Sea producers following a surge in energy costs in 2022 has put further pressure on them to reduce investment and exit the basin. Equinor, which currently produces some 38,000 boed per day in Britain, is developing the Rosebank oilfield, one of the last known major oil reservoirs in Britain, while Shell, with UK output of more than 100,000 boed, is developing the Jackdaw gas field. Other oil groups have formed North Sea ventures in recent years, including Eni (ENI.MI) , opens new tab and Ithaca Energy (ITH.L) , opens new tab in Britain this year and the 2016 creation of Aker BP (AKRBP.OL) , opens new tab in Norway. RBC Capital Markets said in a note that Thursday's deal effectively reduces Equinor's capital expenditure by $1.2 billion over 2025-2027, due to the way the new entity will be accounted for, while Shell would see a smaller capex reduction. Equinor also brings around 6 billion pounds ($7.6 billion) of deferred tax losses to the JV, which it will be able to offset against future spending, RBC said. "There's a very strong industrial logic for doing this. We are adjusting to industrial reality of the mature UK shelf," Equinor's Mathieu said, confirming that the JV would benefit from tax losses. The new company will include Equinor's stakes in the Mariner, Rosebank and Buzzard fields, and Shell's holdings in Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair and Schiehallion, the Norwegian group said. A range of exploration licences will also be part of the transaction. Equinor will retain ownership of the Utgard, Barnacle and Statfjord cross-border assets between Norway and Britain, as well as its offshore wind portfolio including Sheringham Shoal, Dudgeon, Hywind Scotland and Dogger Bank, it said. Equinor will also retain its hydrogen, carbon capture and storage, power generation, battery storage and gas storage assets. Shell will keep its interests in the Fife NGL plant, St Fergus Gas Terminal and floating wind projects under development, MarramWind and CampionWind. ($1 = 0.7863 pounds) Sign up here. https://www.reuters.com/markets/deals/equinor-shell-form-jointly-owned-oil-gas-producer-britain-2024-12-05/

2024-12-05 07:51

Dec 5 (Reuters) - UK's Serica Energy (SQZ.L) , opens new tab cut its full-year production forecast for the second time in two weeks on Thursday after it was forced to again suspend operations at its Triton floating production storage and offloading (FPSO) vessel in the North Sea. The company said that after a limited production resumption at the FPSO vessel last week, it found an issue with one of the compressor seals that resulted in a renewed suspension. Serica now expects its production to be 35,000 to 36,000 barrels of oil equivalent per day (boepd) in 2024, lower than the 37,000 boepd it forecast last week. The company said Dana Petroleum, which operates the FPSO, is likely to take about two to four weeks to complete the necessary repairs for the latest issue. Serica had reported a problem with a single gas compressor in the FPSO vessel in late October. At that time, it said the company's total output would be slightly below 41,000-46,000 boepd in 2024. With production at Triton suspended, the company's current production from the North Sea, including from the Bruce Hub, is around 28,000 boepd, of which about 22,000 boepd is gas. Sign up here. https://www.reuters.com/business/energy/uks-serica-energy-cuts-output-forecast-again-after-triton-vessel-outage-2024-12-05/

2024-12-05 07:49

KAMPALA, Dec 5 (Reuters) - The Ugandan shilling firmed on Thursday, boosted by inflows of hard currency from charities and exporters of commodities like coffee and gold, traders said. At 0728 GMT, commercial banks quoted the shilling at 3,666/3,676, compared to Wednesday's close of 3,673/3,683. Sign up here. https://www.reuters.com/markets/currencies/ugandan-shilling-firms-charity-commodity-fx-inflows-2024-12-05/

2024-12-05 07:46

NEW DELHI, Dec 5 (Reuters) - Russian oil producer Rosneft (ROSN.MM) , opens new tab invested $20 billion in India recently, the Indian government quoted Russian President Vladimir Putin as saying on Thursday. Russia is also ready to set up manufacturing operations in the South Asian nation, the Indian government statement quoted Putin as saying at the 15th VTB Russia Calling Investment Forum. Sign up here. https://www.reuters.com/business/energy/russias-rosneft-invested-20-bln-india-indian-government-quotes-putin-saying-2024-12-05/