2024-11-28 10:01

KARLSRUHE, Germany, Nov 28 (Reuters) - Germany's constitutional court on Thursday ruled in favour of a government policy that required renewable energy producers to surrender excess revenues to help offset surging electricity costs during the 2022/2023 energy crisis. The case, brought by 22 operators of renewable energy plants, challenged provisions in Germany's Electricity Price Cap Act that required producers to hand over surplus earnings from electricity sold between December 2022 and June 2023. The funds were used to cap electricity prices for households and companies to mitigate the sharp rise in energy prices following Russia's invasion of Ukraine and the disruption of Russian energy exports to Germany. German businesses have struggled to keep a lid on higher energy costs at a time when Europe's largest economy faces a second year of contraction. The complainants argued the measures unfairly targeted renewable energy producers, while gas-fired power plants, which they said were responsible for driving up prices, were exempt, adding that the relief measures for consumers should have been financed through broader societal means, such as taxes. The ruling means the government will not be forced to refund around 750-850 million euros ($790 million-$895 million) to affected operators in what could have strained already tight public finances. Stephan Harbarth, President of the constitutional court, said the profit skimming "was justified as a reaction to a special exceptional situation on the electricity market that arose after the start of the war in Ukraine in February 2022." ($1 = 0.9491 euros) Sign up here. https://www.reuters.com/business/energy/german-court-approves-windfall-profit-skimming-2022-energy-crisis-2024-11-28/

2024-11-28 08:07

NAIROBI, Nov 28 (Reuters) - The Kenyan shilling weakened slightly on Thursday, with traders attributing the depreciation to rising demand for the dollar from manufacturers and oil retailing companies. The shilling traded at 129.65/129.85 at 0748 GMT, compared to Wednesday's closing rate of 129.00/130.00. "Demand is still surpassing supply. That's partly attributed to the end-of-month demand that we normally see," a trader at one commercial bank said. Sign up here. https://www.reuters.com/markets/currencies/kenyan-shilling-weakens-due-increased-fx-demand-manufacturers-2024-11-28/

2024-11-28 07:38

China plans to use palladium in synthesis of hydrogen Nornickel sees 5-10 T of new palladium demand in China from 2026-2027 Traditional demand for palladium in China to fall by 29% by 2030 Palladium prices down 10% this year MOSCOW, Nov 28 (Reuters) - Russian metals giant Nornickel believes that new technologies it is developing, including for the synthesis of hydrogen, will create demand for palladium in China equal to up to 15% of current consumption, a top executive told Reuters. Demand from makers of internal combustion engine (ICE) vehicles who use palladium in exhaust pipes to neutralise emissions - which accounts for 80% of the metal's global use - is set to shrink due to the rise of electric vehicles. Nornickel, the world's largest palladium producer, estimates that traditional demand from China, the largest consumer of the metal, will fall by 29% to 47 tons by 2030 because the country will be making fewer ICE vehicles. According to the World Platinum Investment Council (WPIC), the decline in ICE vehicle production will result in a market surplus of palladium in 2026. Global prices for palladium are down 10% this year after a 39% slump in 2023. Together with Chinese universities and industrial partners, Nornickel is testing several technologies in areas such as hydrogen production and water purification that involve using palladium, in the hope of boosting demand. "We expect that these projects have the potential for at least 15 tons of long-term additional demand for palladium and will gradually start to be reflected in market analysts' forecasts," said the company's Vice President Vitaly Busko. China is the world's largest producer of hydrogen, which is part of the country's green transition strategy and is used in production of ammonia fertilisers and methanol as well as in oil refining. "In terms of hydrogen and green chemistry, China is developing much faster than the rest of the world. In this sense, the interest is significant," Busko said. Nornickel currently produces over 40% of the world's palladium and estimated global demand for the metal in 2023 at 302 tons, with a 22% market share for China. Analysts estimate a global surplus of the metal of 20-40 tons by 2030. "Our goal is to create new demand for 40-50 tons," Busko said. He said the company was working with at least five Chinese companies to develop the new technologies and that 80% of China's palladium market was currently supplied by Nornickel. He expects new demand for palladium equal to 5-10 tons to emerge in 2026-27. Apart from China, Nornickel is looking to develop new areas for palladium usage in the Middle East, Brazil and Malaysia. Nornickel is not directly hit by Western sanctions against Russia but has pivoted logistics and over 52% of sales to Asia. The company is also seeking to boost palladium usage at home and plans to supply up to 0.4 tons of the metal for fibreglass production in Russia. It also expects Russian firms to start using palladium in water purification. In 2024, the company plans to produce 82-85 tons of palladium. (This story has been corrected to say 29%, not 47%, in the third bullet point) Sign up here. https://www.reuters.com/markets/commodities/nornickel-sees-new-technologies-sustaining-chinas-palladium-demand-2024-11-28/

2024-11-28 07:15

JOHANNESBURG, Nov 28 (Reuters) - The South African rand strengthened on Thursday, after the release of October producer inflation data and the central bank's November Financial Stability Review. At 1507 GMT the rand was trading at 18.115 to the dollar , about 0.5% stronger than its previous close. South African producer inflation was at minus 0.7% year-on-year in October, down from 1.0% in September, statistics agency data showed. The South African Reserve Bank (SARB) said in its November Financial Stability Review that the outlook for financial stability had improved as a result of successful elections, a reduction in power cuts and an expectation of lower interest rates. Domestic investor focus will turn on Friday towards month-end economic data releases that include money supply, trade and budget balance. On the stock market, the Top-40 (.JTOPI) , opens new tab index closed about 0.4% lower. South Africa's benchmark 2030 government bond was stronger, with the yield down 6 basis points at 8.97%. Sign up here. https://www.reuters.com/markets/currencies/south-african-rand-stable-ahead-producer-inflation-data-central-bank-review-2024-11-28/

2024-11-28 07:09

Nov 28 (Reuters) - Getlink (GETP.PA) , opens new tab, which runs the undersea tunnel between France and Britain, said on Wednesday its ElecLink interconnector will be out of service for two more weeks. The cross-channel electric cable is to return to service on December 16, it said, for an extension that will have an additional impact of about 12 million euros ($12.66 million) beyond the 46 million euros it estimated in October. "The works to restore the cable outside the Tunnel in France are progressing. However, these works are taking longer than previously envisaged.", Getlink said in a statement. The group said its 2024 target range for earnings before interest, taxes, depreciation, and amortisation (EBITDA) remained unchanged. ($1=0.9480 euros) Sign up here. https://www.reuters.com/business/getlink-cost-swell-12-mln-euros-extended-eleclink-outage-2024-11-28/

2024-11-28 06:47

Tech shares boost European stocks South Korean central bank cuts interest rates Oil ticks up as Israel says ceasefire with Hezbollah breached LONDON/SINGAPORE, Nov 28 (Reuters) - European shares ticked up on Thursday after falling the previous day, while Asian stocks slipped, as trading volumes thinned ahead of the U.S. Thanksgiving holiday. Europe's continent-wide STOXX 600 index rose 0.48%, after falling 0.75% across the previous two sessions. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) , opens new tab fell 0.52%, but Japan's Nikkei (.N225) , opens new tab climbed 0.56%. Trading in U.S. equities and Treasuries was closed, but futures for the U.S. S&P 500 were up 0.24% after the index fell 0.38% on Wednesday. European markets were boosted by a rally in tech shares (.SX8P) , opens new tab after Bloomberg reported the Biden administration's curb on Chinese chips could be less severe than expected. Data on Wednesday showed U.S. consumer spending increased in October but the Federal Reserve's preferred measure of inflation ticked up to 2.3% in October, from 2.1% the previous month. Together with the prospect of higher tariffs on imported goods, solid spending and inflation could narrow the scope for interest rate cuts next year. "We continue to expect the FOMC to cut the Funds rate by 25 basis points at its December meeting," said economist Kristina Clifton at the Commonwealth Bank of Australia, referring to the United States' rate-setting Federal Open Market Committee. "However, another solid monthly core inflation for November will challenge the FOMC's view that inflation is trending down to 2% per year." The dollar index , which measures the U.S. currency against six rivals, was 0.1% higher at 106.2 after dropping 0.7% in the previous session. Chris Turner, global head of markets at lender ING, said Wednesday's fall in the dollar was likely driven in part by investors cashing in gains on U.S. stocks and bonds in November before the end of the month. "Presumably, some of this activity took place in the more liquid markets yesterday than waiting for Thanksgiving-thinned conditions." In a surprise move, South Korea's central bank cut benchmark interest rates for a second consecutive meeting on Thursday after inflation slowed more than policymakers predicted. The won weakened after the decision. The yen was 0.28% lower at 151.52 per dollar after rallying to a one-month high in the previous session. The Asian currency is headed for its strongest week since early September on growing expectations of a rate hike from the Bank of Japan next month. The euro was down 0.13% at $1.0552 after rising 0.7% in the previous session in the wake of European Central Bank board member Isabel Schnabel saying that rate cuts should be gradual and move to neutral, not accommodative, territory. European bond yields fell as prices climbed , , a welcome bit of respite for France's government, which saw its borrowing costs rise to their highest over Germany's since 2012 on Wednesday. French Finance Minister Antoine Armand said on Thursday the government was ready to make concessions over its budget, which has faced widespread opposition from both far-left and far-right politicians. Investors were watching inflation data for euro zone countries and German states trickle in on Thursday before whole-bloc figures on Friday. In commodities markets, oil prices ticked up after Israel said its ceasefire with Hezbollah had been breached, with Brent crude futures 0.37% higher at $73.1 a barrel. Spot gold was up 0.14% at $2,639 per ounce but on course for a near 4% drop in November, its weakest monthly performance in over a year. Sign up here. https://www.reuters.com/markets/global-markets-wrapup-1-2024-11-28/