2024-11-18 17:49
Nov 19 (Reuters) - Brazil's central bank chief Roberto Campos Neto said on Tuesday the country faces a clear inflation challenge, pointing to concerns about service inflation and inflation expectations unanchored from the official target. Speaking at an event hosted by Sao Paulo's Commercial Association, Campos Neto reiterated that the rise in Brazil's risk premium is tied to market doubts over the government's ability to balance its debt and stressed the need for a positive fiscal shock to structurally address the issue. Sign up here. https://www.reuters.com/world/americas/brazils-central-bank-chief-says-monetary-policy-tied-fiscal-fears-2024-11-18/
2024-11-18 15:46
JOHANNESBURG, Nov 18 (Reuters) - South Africa's rand jumped on Monday, as markets welcomed rating agency S&P's decision to raise the country's credit rating outlook. At 1538 GMT, the rand traded at 18.02 against the dollar , about 1.1% stronger than its previous close. S&P revised South Africa's outlook to "positive" from "stable" on Friday, citing plans for accelerated economic reforms by the government of national unity and a pickup in private investments. "S&P has removed the large political risk component for SA, now that the GNU has proved stable, which has allowed the outlook to brighten, on the increased political stability, and so expected stronger investment and growth," Annabel Bishop, chief economist at Investec, said in a research note. Local investor focus this week will be on October inflation figures and an interest rate decision by the South African Reserve Bank. The SARB is expected to cut rates by 25 basis points on Thursday. "While a rate cut would align with easing global monetary policies, the SARB is likely to maintain a cautious approach to ensure currency stability and control inflation expectations amid recent ZAR volatility," said Andre Cilliers, currency strategist at TreasuryONE. On the stock market, the Top-40 (.JTOPI) , opens new tab index closed 0.6% up. South Africa's benchmark 2030 government bond was stronger, with the yield down 2.7 basis points to 9.123%. Sign up here. https://www.reuters.com/markets/currencies/south-african-rand-firms-sp-outlook-upgrade-2024-11-18/
2024-11-18 12:52
Nov 18 (Reuters) - Air Products (APD.N) , opens new tab nominated two new independent director candidates on Monday, intensifying efforts to revamp its board amid investor pressure. CONTEXT The Pennsylvania-based company has nominated Bob Patel and Alfred Stern, executives with experience leading major public industrial firms like LyondellBasell (LYB.N) , opens new tab and Austria's OMV Group (OMVV.VI) , opens new tab, for elections at the upcoming annual shareholders meeting. WHY IT'S IMPORTANT The company faces mounting pressure from hedge fund managers Mantle Ridge and D.E. Shaw, who have criticized Air Products' share underperformance, senior leadership and capital allocation policies. Both investors have urged board refreshment and a focus on core business operations. In a September letter, D.E. Shaw claimed that "the company's clean hydrogen strategy led to the destruction of roughly $15 billion of equity value within the core industrial gas business." SHARES Shares rose about 1% in premarket trading. KEY QUOTE "With their (Patel and Stern) addition, the Board will continue to be well-positioned to oversee the Company through its next phase of growth and execute on a successful leadership succession." said Lead Director, Edward Monser. Sign up here. https://www.reuters.com/markets/commodities/air-products-nominates-two-industry-veterans-board-amid-investor-pressure-2024-11-18/
2024-11-18 12:30
NAPERVILLE, Illinois, Nov 17 (Reuters) - Despite a near-record U.S. corn harvest, speculators have built their most bullish stance in Chicago corn futures and options since February 2023 as U.S. exporters have recently posted some staggering sales volumes. However, the optimism could have a shelf life because supplies remain ample. In the week ended Nov. 12, money managers expanded their net long in CBOT corn futures and options to 109,989 contracts from 22,043 in the previous week. That move included funds' largest round of short-covering in six months. The U.S. Department of Agriculture on Nov. 8 whittled its projection of 2024-25 U.S. corn ending stocks. CBOT corn futures in that session topped at $4.34-3/4 per bushel, the contract's highest since June 28. It is uncommon for speculators to flip from an extremely bearish mid-year corn stance to a reasonably bullish one a few months later since supply uncertainties are usually lower around this time of year. The last comparable situation was in 2020, which like 2024, featured relatively low grain and oilseed prices. But the outlook shift was much more extreme four years ago. USDA in June 2020 estimated 2020-21 U.S. corn carryout at 3.3 billion bushels, but that forecast plunged to 1.7 billion by November 2020 on a large drop in planted acres. This put 2020-21 carryout on track for a seven-year low, which ultimately played out. This month, USDA pegged 2024-25 U.S. corn carryout at 1.94 billion bushels versus 2.1 billion in June, far less severe than the 2020 cuts and still representing a five-year high. The comparison with 2020 suggests the recent bullishness could be short-lived if U.S. demand eases, and a continuation of supportive crop weather in South America would add to the pressure. It is possible for U.S. export demand to cool. Some market participants believe global buyers stocked up on purchases ahead of a potential, and now certain, second term for President Donald Trump, whose first term was rife with trade tariffs. U.S. soybean export sales to top customer China are unimpressive, and that could worsen amid any escalation in trade tensions. Speculators have held bearish views toward CBOT soybeans since the beginning of 2024. Through Nov. 12, money managers ramped up short bets in CBOT soybean meal for a third consecutive week. That boosted their net short to 27,631 futures and options contracts, their most bearish meal view in seven months. Funds' sentiment in CBOT soybean oil is quite the opposite, as they increased their net long in the week ended Nov. 12 to 75,144 futures and options contracts. That is their most bullish stance in two years and is on par with their mid-November positioning between 2019 and 2022. CBOT soymeal futures on Friday hit their lowest levels since June 2020, though a week ago, CBOT soyoil reached seven-month highs. Strong global vegoil prices will continue to be of interest to traders this week, especially following China's announcement on Friday that it will cut export incentives for feedstocks that compete with U.S. bean oil. Karen Braun is a market analyst for Reuters. Views expressed above are her own. Sign up here. https://www.reuters.com/markets/europe/funds-plant-most-bullish-cbot-corn-bets-nearly-two-years-2024-11-18/
2024-11-18 12:18
MANILA, Nov 18 (Reuters) - At least eight people were killed as super typhoon Man-Yi hit the Philippine archipelago over the weekend, unleashing fierce winds and strong rains that triggered landslides and storm surges, authorities said. Man-Yi, the sixth storm to hit the country in a span of one month, made landfall in the eastern province of Catanduanes on Saturday, but weakened as it moved across the main Luzon island and was later downgraded to a typhoon as it exited the landmass on Monday. A family of seven, including an eight-year-old girl, died after a landslide in a northern provincial town in Nueva Vizcaya buried their home, the disaster office in the area said. In Daet town in Camarines Norte province, a 72-year-old man was killed in a vehicular accident caused by hanging cables due to the storm's strong winds, the provincial disaster office said. "One casualty is one casualty too many. So, that is unfortunate," President Ferdinand Marcos Jr told reporters, referring to the death in Camarines Norte. "We will now carry on with the rescue of those isolated areas and the continuing relief for those who have been displaced." On average, about 20 tropical storms strike the Philippines each year, bringing heavy rain, strong winds, flooding, and landslides. Man-Yi is approaching Vietnam with maximum sustained winds of 110 kilometres per hour (68.35 mph) and gustiness of up to 135 kph. In rice-producing Nueva Ecija province in northern Luzon, farmlands and villages were flooded, worrying farmers such as Danilo Dagdagan due to the impact on crops and livelihood. "The floodwater from the typhoon and the surrounding provinces gushed here because the elevation of the land here is lower," Dagdagan told Reuters inside the living room of his flooded home. "It makes our lives difficult, it's hard for us especially for those without sufficient food." International aid has poured in to assist the Philippines in its relief operations, including from the U.S. Visiting U.S. Defense Secretary Lloyd Austin said he has authorised U.S. forces to provide direct support to respond to the super typhoon. "We've also secured another million dollars in urgent humanitarian aid, and that will help surge aid to the Philippine people." In October, Tropical Storm Trami and Typhoon Kong-rey triggered floods and landslides that killed 162 people, with 22 still missing, government figures show. Sign up here. https://www.reuters.com/world/asia-pacific/least-eight-killed-super-typhoon-struck-philippines-2024-11-18/
2024-11-18 12:18
Nov 18 (Reuters) - Funding for a climate-friendly farming effort led by the U.S. and United Arab Emirates has reached $29.2 billion, the countries announced on Monday at the COP29 climate summit in Baku. The Agriculture Innovation Mission for Climate (AIM for Climate) was launched in 2021. Under the program, governments, companies, and non-government organizations pledge funding for projects to reduce the climate impact of agriculture and to make farming more resilient to the impacts of global warming. Food systems account for about a third of human-made greenhouse gas emissions, according to the United Nations. That includes emissions related to farming and land use, producing crops and livestock, and energy used in processing and transportation. "We recognize that investment in agricultural research and development has long been a driver of prosperity and resilience, and it has never been more important, as agriculture and food systems around the world face a range of unprecedented challenges," said U.S. Agriculture Secretary Tom Vilsack. Planned as a five-year initiative, the AIM for Climate program will end in 2025. Nearly 130 projects have been announced with more than 800 partners with the aims of supporting small farmers, reducing methane emissions, and advancing research and technological innovation in farming. AIM for Climate had secured $17 billion in funding at last year's COP28, and $8 billion at COP27. Sign up here. https://www.reuters.com/sustainability/cop29-us-uae-climate-friendly-farming-partnership-grows-29-billion-2024-11-18/
