2024-11-21 07:43

MUMBAI, Nov 21 (Reuters) - Foreigners that sold Indian government bonds in November may not be in hurry to return as pressure on the local currency is expected to continue and as interest rate cuts seem to be delayed, ANZ India's treasurer said. These investors took out 104 billion rupees ($1.23 billion) of bonds on a net basis under the Fully Accessible Route, over 11 sessions this month, according to clearing house data on Thursday. Most of the bonds are part of JPMorgan's emerging market debt index. "If our currency is expected to weaken and we are not seeing any immediate monetary policy action, it may make sense for foreign portfolio investors (FPI) to sell now and buy back at a later period," Nitin Agarwal, head of trading at ANZ India, said earlier this week. The Indian rupee hit a record low of 84.44 against the U.S. dollar earlier in the day, and is down 0.4% so far this month. "Overall, given the volatility expected over the short-term horizon, I do not imagine that we will receive any major inflows over the next two months." U.S. President-elect Donald Trump's proposed trade and fiscal policies could also result in emerging markets performing poorly, with the overall assets under management of JPMorgan's emerging market debt index expected to dwindle. If there are fewer funds tracking JPMorgan's index, after they shift their focus to the U.S. from emerging markets, it will lead to lower flows into Indian government bonds, Agarwal said. This is why tracking the index is important, he added. Foreign lenders, which have been the biggest sellers of Indian bonds this month, are also expected to stay away. "Foreign banks expected significant monetary policy easing and continued foreign inflows and positioned themselves accordingly. When these expectations reversed, positions have been pared down," Agarwal said. The Reserve Bank of India could deliver a rate cut in February, Agarwal said, but acknowledged that the window for the central bank to lower rates is "fast closing from an inflation print perspective." ($1 = 84.4330 Indian rupees) Sign up here. https://www.reuters.com/markets/rates-bonds/foreigners-selling-indian-bonds-wont-return-hurry-anz-indias-agarwal-says-2024-11-21/

2024-11-21 07:38

Nov 21 (Reuters) - Starbucks (SBUX.O) , opens new tab reiterated on Thursday it is exploring strategic partnerships for its Chinese operations, after a media report saying the company is considering selling a stake in the business to a local partner. The Seattle-based company, facing a decline in demand for its beverages in major markets such as the U.S. and China, aims to revamp its U.S. stores and gain a better understanding of its Chinese operations, the firm's new CEO Brian Niccol told investors last month "All indications show me the competitive environment is extreme (in China)... and we need to figure out how we grow in the market ... in the meantime, we continue to explore strategic partnerships that could help us grow in the long term," he said on an earnings call on Oct. 31. Bloomberg reported on Thursday that Starbucks was exploring options for its Chinese operations including the possibility of selling a stake in the business, and it has gauged interest from prospective investors including domestic private equity firms. Responding to the report, Starbucks said in a statement it was "working to find the best path to growth, which includes exploring strategic partnerships." "We are fully committed to our business and partners, and to growing in China," it said, without elaborating. In China, its second-largest market, Starbucks has grappled with weak consumer spending and stiff competition from local coffee chains such as Luckin Coffee in a sluggish macroeconomic environment. Last year, Luckin pipped its U.S. rival to the top spot on annual sales for the first time in the China market. Starbucks, which operates nearly 7,600 stores in China, has reported declining sales in the country for three consecutive quarters, with a 14% fall in the last quarter. The company suspended its forecast for the next fiscal year last month, as its CEO prepares a turnaround plan for the coffee giant. Sign up here. https://www.reuters.com/business/retail-consumer/starbucks-considers-selling-stake-chinese-business-bloomberg-news-reports-2024-11-21/

2024-11-21 07:36

KAMPALA, Nov 21 (Reuters) - The Ugandan shilling edged lower on Thursday, undercut by hard currency demand from telecoms, energy and manufacturing firms, traders said. At 0711 GMT commercial banks quoted the shilling at 3,690/3,700, compared to Wednesday's close of 3,685/3,695. Sign up here. https://www.reuters.com/markets/currencies/ugandan-shilling-edges-lower-telecoms-energy-fx-demand-2024-11-21/

2024-11-21 07:35

NAIROBI, Nov 21 (Reuters) - The Kenyan shilling was steady on Thursday as dollar inflows from exports matched rising demand from the manufacturing sector, one trader said. The shilling traded at 129.00/130.00 at 06:52 GMT, according to LSEG data, the same as Wednesday's closing rate. The East African currency weakened slightly in the past week, after remaining rangebound since early August. Sign up here. https://www.reuters.com/markets/currencies/kenyan-shilling-steady-export-dollar-inflows-match-rising-demand-2024-11-21/

2024-11-21 07:24

Daily Russian gas volumes via Ukraine stable Nominations to Austria unchanged in recent days Gazprom halted flow to Austria's OMV on Saturday MOSCOW/PRAGUE, Nov 21 (Reuters) - Russia's natural gas exports through Ukraine to Europe have been stable on Thursday, Kremlin-controlled gas giant Gazprom (GAZP.MM) , opens new tab said, despite a contractual row with Austrian energy company OMV (OMVV.VI) , opens new tab. Gazprom (GAZP.MM) , opens new tab said it would send 42.4 million cubic metres of gas to Europe via Ukraine on Thursday, the same volume it has shipped each day since Nov. 12. Russia's Gazprom halted supply to OMV on Saturday over a contractual dispute, the Vienna-based company said. Gazprom has not commented. It is still not clear where the gas volumes intended for OMV have been redirected. Data from transmission system operator Eustream showed that nominations, or requests, for flows to Austria from Slovakia were stable from the previous two days, but about 12% below levels seen in November before Russia halted gas supply to OMV. Nominations to the Czech Republic from Slovakia were in line with levels seen this month. Nominations into Slovakia from Ukraine were steady versus previous days on Thursday, and those for flows leaving Slovakia were also little changed, the data showed. Sign up here. https://www.reuters.com/business/energy/russian-gas-flows-eu-via-ukraine-unchanged-despite-austria-row-2024-11-21/

2024-11-21 07:17

LONDON, Nov 21 (Reuters) - Britain borrowed more than expected in October, according to official data that showed the scale of the challenge facing finance minister Rachel Reeves who says she will fix the public finances as well as increase spending sharply. In October alone, public sector net borrowing stood at 17.4 billion pounds ($22.0 billion), the Office for National Statistics said on Thursday. That was higher than a median forecast of 12.3 billion pounds in a Reuters poll of economists. It was the second-biggest October borrowing total since records began in 1993. In the first seven months of the tax year, borrowing totalled 96.6 billion pounds, 1.1 billion pounds higher than in the same period a year earlier. ($1 = 0.7908 pounds) Sign up here. https://www.reuters.com/world/uk/uk-borrows-higher-than-expected-174-bln-pounds-october-2024-11-21/