2024-12-03 12:24

Dec 3 - Enbridge (ENB.TO) , opens new tab, on Tuesday forecast higher core profit for 2025, as the Canadian pipeline operator expects strong demand for oil and gas to lift volumes. The company forecast adjusted core earnings of between C$19.4 billion ($13.82 billion) and C$20 billion next year, higher than its 2024 expectations. In November, U.S. natural gas producers said they will increase output in 2025 after a series of production cuts this year, as increased demand from LNG export plants is expected to drive up prices. Enbridge expects to deploy nearly C$7 billion of capital in 2025, exclusive of maintenance capital. The company also raised its 2025 dividend by 3%. ($1 = 1.4038 Canadian dollars) Sign up here. https://www.reuters.com/business/energy/canadian-pipeline-operator-enbridge-forecasts-higher-2025-core-profit-2024-12-03/

2024-12-03 12:21

JOHANNESBURG, Dec 3 (Reuters) - South Africa's G20 presidency next year will focus on mobilising finance for nations stricken by climate-induced disasters and extending debt relief for developing countries, President Cyril Ramaphosa said on Tuesday. South Africa is the first African country to lead the G20, which was set up to bolster economic cooperation among leading developed and emerging economies and includes 19 sovereign nations along with the European Union and the African Union. Ramaphosa said he would use the opportunity to advance the development priorities of Africa and the Global South. "First, we must take action to strengthen disaster resilience," he told journalists at the official launch of the G20 presidency. "We will elevate this issue to leader level, calling for the global community, including international financial institutions, development banks and the private sector to scale up post-disaster reconstruction," he said. The second priority will be ensuring the sustainability of low-income countries' debts, which has already been a core topic for the G20 in recent years. "We will also seek to ensure that the sovereign credit ratings are fair and transparent and to address high risk premiums for developing economies," Ramaphosa said. Other priorities will include increasing financing to help developing countries make the transition to renewable energy and ensuring that critical minerals, many of which are mined in Africa, benefit the countries and communities where they originate, he said. South Africa's objectives could be complicated by the risk of trade wars under U.S. President-elect Donald Trump, who has called climate change a hoax and threatened to introduce restrictive trade tariffs on nations including Canada, Mexico and China. The annual summit of G20 leaders will be held in Johannesburg in November 2025, Ramaphosa said. The United States will take over the G20 presidency next. Sign up here. https://www.reuters.com/world/africa/south-africa-sets-climate-finance-debt-relief-g20-presidency-focus-2024-12-03/

2024-12-03 11:55

SAO PAULO, Dec 3 (Reuters) - Santo Antonio, one of Brazil's largest hydroelectric plants, has coped with an extreme drought, its head told Reuters, crediting the plant's resilience to a set of measures that have kept the plant running even in record low waters. Santo Antonio, on the Amazon's Madeira River, was forced to temporarily halt operations in 2023 after drought pushed water levels to a then record low of 1.1 meters (3.61 feet), according to data from Brazil's geological service. But this year, the plant was able to keep operating despite a worse drought taking Madeira's water levels to a new low of 0.19 meters. "Lessons were learned (in 2023)," the plant's president Caio Pompeu Neto said, crediting Santo Antonio's performance to a slate of new measures. Those include making changes to how it transmits electricity to make sure more power is shipped to states where it is most needed, such as Acre and Rondonia, and creating a system to artificially raise downstream water levels. "In one of our generators there is a stone in front of the machine. So when we closed all the turbines and spillways, the water flowed through this channel, hitting the rocks and increasing the downstream level of the reservoir," Neto said. Thanks to the measures, Santo Antonio, which is run by Latin America's largest power firm Eletrobras (ELET6.SA) , opens new tab, was able to generate some 400 megawatts (MW) and operate six of its 50 turbines during the drought's peak this year between September and October. With the rainy season now gaining pace, the plant is generating 2,000 MW, from a total capacity of 3,568 MW, and 29 of its 50 turbines are in operation, he said. Still, challenges remain, as the Madeira River sits at just 5.62 meters, below the historic average of seven meters at this time of year. Neto said that Santo Antonio could take further steps in the event of another extreme drought, noting the plant was in talks with turbine suppliers about ways to potentially operate them safely in lower water levels than normal. Sign up here. https://www.reuters.com/world/americas/eletrobras-santo-antonio-power-plant-bouncing-back-after-historic-brazil-drought-2024-12-03/

2024-12-03 11:51

TSX ends up 0.2% at 25,635.73 Materials group climbs 2.7% Energy adds 0.5%; oil settles 2.7% higher Scotiabank falls 3.4% after earnings miss Dec 3 (Reuters) - Canada's main stock index rose on Tuesday, with gains for resource shares offsetting disappointing results from Bank of Nova Scotia (BNS.TO) , opens new tab as positive momentum since the outcome of the U.S. presidential election in November continued. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) , opens new tab ended up 45.40 points, or 0.2%, at 25,635.73, stopping just short of the record closing high it posted on Friday. In November, the TSX added 6.2%, its biggest monthly gain in one year. "The post-election relief rally continues," said Matt Skipp, president of SW8 Asset Management. "Optimism about a more business friendly environment in the United States is driving markets ever higher." Canada sends about 75% of its exports to the United States, including oil , which settled 2.7% higher at $69.94 a barrel as Israel threatened to attack the Lebanese state if its truce with Hezbollah collapses. Energy added 0.5% and the materials group, which includes fertilizer companies and metal mining shares, was up 2.7%. Copper prices climbed 1.8% and gold edged higher. Bank of Nova Scotia (BNS.TO) , opens new tab shares fell 3.4% as the bank reported fourth-quarter earnings below analysts' expectations, warning about modest economic growth in key international markets and drawing investors' attention to credit woes as consumers struggle to pay back high-interest loans. "Interest rates are too high in Canada and they've got to come down. Everybody is loaded with debt and it hurts," Skipp said. The Bank of Canada has lowered its benchmark interest rate by one and a quarter percentage points since June to 3.75% but borrowing costs are still above the 2.75% rate the central bank estimates for the neutral setting - the level that neither restricts nor stimulates the economy. The heavily weighted financials sector was down 0.5%, while industrials ended 0.4% lower as railroad shares fell. Sign up here. https://www.reuters.com/markets/tsx-futures-rise-energy-boost-scotiabank-kicks-off-domestic-bank-earnings-2024-12-03/

2024-12-03 11:47

Fed likely to deliver 25bp rate cut in Dec -UBS US job openings data due at 1500 GMT Fed's Waller says inclined to cut rates in December Benchmark US 10-year Treasury yields near late Oct lows Dec 3 (Reuters) - Gold prices edged higher on Tuesday, as recovering expectations of a U.S. rate cut in December weighed on the dollar and Treasury yields ahead of economic data that could offer further signals on the Federal Reserve's policy trajectory. Spot gold rose 0.1% to $2,640.16 per ounce by 1242 GMT, after falling as much as 1% on Monday. U.S. gold futures gained 0.2% to $2,662.80. "Several factors are influencing gold's price action, including expectations of a Fed rate cut in December, the 10-year Treasury yield hovering near its lowest level since October, and sustained safe-haven demand," said Ricardo Evangelista, senior analyst at ActivTrades. Markets are pricing in a 73% probability of a 25-basis-point rate cut at the Dec. 17–18 meeting, up from 66% before Fed Governor Christopher Waller on Monday signalled support for a cut this month, citing inflation still forecast to fall to 2%. UBS said it expects the Fed to cut by 25 basis points in December, followed by another 100 bps of easing through 2025. The benchmark 10-year Treasury yield ticked up but was hovering around a 1-month low, making non-yielding bullion more attractive. The dollar was down 0.2%. Investors will also be watching job openings data due at 1500 GMT, the ADP employment report on Wednesday, and Friday's payrolls report. Gold, which does not pay any interest, historically performs well in low-interest rate environments and during periods of geopolitical uncertainty. In the Middle East, a U.S.-brokered ceasefire between Israel and militant group Hezbollah faltered as strikes killed nine in southern Lebanon following Hezbollah's attack on Israel's Shebaa Farms on Monday. "I anticipate gold prices to trade within a relatively narrow range, with resistance at $2,650 and support at $2,620," Evangelista added. In other metals, spot silver added 1.1% to $30.82 per ounce, platinum rose 0.4% to $954.20 and palladium was up 0.8% at $988.75. Sign up here. https://www.reuters.com/markets/commodities/gold-holds-steady-investors-eye-key-us-jobs-data-2024-12-03/

2024-12-03 11:45

Beijing's curbs follow latest US limits on Chinese chip sector Exports of gallium, germanium to US already stalled Antimony prices surge this year as China stifles exports Dec 3 (Reuters) - China on Tuesday banned exports to the United States of the critical minerals gallium, germanium and antimony that have widespread military applications, escalating trade tensions the day after Washington's latest crackdown on China's chip sector. The curbs strengthen enforcement of existing limits on critical minerals exports that Beijing began rolling out last year, but apply only to the U.S. market, in the latest escalation of trade tensions between the world's two largest economies ahead of President-elect Donald Trump taking office next month. A Chinese Commerce Ministry directive on dual-use items with both military and civilian applications cited national security concerns. The order, which takes immediate effect, also requires stricter review of end-usage for graphite items shipped to the U.S. "In principle, the export of gallium, germanium, antimony, and superhard materials to the United States shall not be permitted," the ministry said. Gallium and germanium are used in semiconductors, while germanium is also used in infrared technology, fibre optic cables and solar cells. Antimony is used in bullets and other weaponry, while graphite is the largest component by volume of electric vehicle batteries. The move has sparked fresh concern that Beijing could next target other critical minerals, including those with even broader usage such as nickel or cobalt. "China has been signalling for some time that it's willing to take these steps, so when is the U.S. going to learn its lesson?" said Todd Malan of Talon Metals (TLO.TO) , opens new tab, which is trying to develop a nickel mine in Minnesota and is exploring for the metal in Michigan. The only U.S. nickel mine will be depleted by 2028. The United States was assessing the new restrictions, but will take "necessary steps" in response, a White House spokesperson said, without giving details. "These new controls only underscore the importance of strengthening our efforts with other countries to de-risk and diversify critical supply chains away from PRC (China)," the spokesperson said. Representatives for Trump did not immediately respond to a request for comment. Chinese customs data show there have been no shipments of wrought and unwrought germanium or gallium to the U.S. this year through October, although it was the fourth and fifth-largest market for the minerals, respectively, a year earlier. Similarly, China's overall October shipments of antimony products plunged by 97% from September after Beijing's move to limit its exports took effect. China accounted last year for 48% of globally mined antimony, which is used in ammunition, infrared missiles, nuclear weapons and night-vision goggles, as well as in batteries and photovoltaic equipment. This year, China has accounted for 59.2% of refined germanium output and 98.8% of refined gallium production, according to consultancy Project Blue. "The move is a considerable escalation of tensions in supply chains where access to raw material units is already tight in the West," said Project Blue co-founder Jack Bedder. Prices of antimony trioxide in Rotterdam had soared by 228% since the beginning of the year to $39,000 a metric ton on Nov. 28, data from information provider Argus showed. "Everyone will dig in their backyard to find antimony. Many countries will try to find antimony deposits," said a minor metals trader in Europe, declining to be named. Perpetua Resources (PPTA.O) , opens new tab, which is developing an Idaho antimony mine with U.S. government financial support, said China is "weaponizing accessing" to minerals critical for the U.S. military and technology firms. "We must get serious about American mineral sources," said Perpetua CEO Jon Cherry. "It's time to end our reliance on China and secure our future." United States Antimony (UAMY.A) , opens new tab, which refines antimony in Montana, said it believes China's move will boost prices of the metal and thus increase supplies for its smelter, although the company acknowledged that it will take time for mines to be developed. China's announcement comes after Washington launched its third crackdown in three years on China's semiconductor industry on Monday, curbing exports to 140 companies, including chip equipment maker Naura Technology Group (002371.SZ) , opens new tab. Trump, whose first four-year White House term was marked by a bitter trade war with China, has said he will implement 10% tariffs on Chinese goods and threatened 60% tariffs on Chinese imports during his presidential campaign. "It comes as no surprise that China has responded to the increasing restrictions by American authorities, current and imminent, with its own restrictions on the supply of these strategic minerals," said Peter Arkell, chairman of the Global Mining Association of China. "It's a trade war that has no winners," he said. Separately, several Chinese industry groups on Tuesday called for their members to buy domestically made semiconductors, with one saying U.S. chips were no longer safe and reliable. Sign up here. https://www.reuters.com/markets/commodities/china-bans-exports-gallium-germanium-antimony-us-2024-12-03/