2024-11-14 20:21

Canadian dollar weakens 0.3% against the greenback Touches its weakest since May 2020 at 1.4039 Price of U.S. oil increases 0.5% Bond yields ease across a flatter curve TORONTO, Nov 14 (Reuters) - The Canadian dollar weakened further beyond a key psychological level against its U.S. counterpart on Thursday, pressured by broad-based gains for the American currency and the potential for U.S. trade tariffs to hurt the domestic economy. The loonie was trading 0.3% lower at 1.4035 to the U.S. dollar, or 71.25 U.S. cents, its fifth straight day of declines. The currency touched its weakest intraday level since May 2020 at 1.4039, after briefly moving past the 1.40 level on Wednesday. "Currency forecasters have turned overwhelmingly bearish on the currency in recent months, with domestic weakness seen intersecting with U.S. outperformance and a constant drumbeat of trade threats to drive the exchange rate lower," Karl Schamotta, chief market strategist at Corpay, said in a note. The U.S. dollar continued its relentless march higher against a basket of major currencies as investors bet that higher trade tariffs and tighter immigration under the incoming Trump administration would fuel inflation, potentially slowing the Federal Reserve's interest rate cutting cycle. Psychological levels such as the round number of 1.40 tend to be significant for market participants. "We expect further (Canadian dollar) weakness, with technical indicators opening up an air pocket between 1.40 and 1.43, but remain wary of an overshoot," Schamotta said. Canada sends about 75% of its exports to the United States, including oil, which could escape protectionist trade measures, according to participants in Canada's energy industry. U.S. crude futures settled 0.4% higher at $68.70 a barrel, clawing back some recent declines for a third straight day. Canadian bond yields moved lower across a flatter curve. The 10-year was down 5.7 basis points at 3.260%. Sign up here. https://www.reuters.com/markets/currencies/canadian-dollar-extends-breach-key-psychological-level-2024-11-14/

2024-11-14 20:12

Nov 14 (Reuters) - Florida's attorney general said on Thursday she filed a lawsuit against the U.S. Federal Emergency Management Agency for allegedly discriminating against hurricane victims who supported President-elect Donald Trump. FEMA earlier this week said it fired an employee who advised her survivor assistance team in Florida to not go to homes with yard signs supporting Trump. FEMA said the matter was referred for investigation to the Office of Special Counsel. FEMA administrator Deanne Criswell in a statement this week announcing the firing of the employee said, "this is a clear violation of FEMA's core values & principles to help people regardless of their political affiliation." The Florida lawsuit alleges that discrimination against Trump supporters took place in the aftermath of Hurricanes Helene and Milton in Lake Placid, Florida. Helene hit Florida in September, followed a few weeks later by Milton in October. "Hurricane season is not over, and the federal agency in charge of emergency response is embroiled in scandal – caught withholding aid from storm victims in Florida who support President Trump," Florida Attorney General Ashley Moody said in a written statement. The FEMA employee who was fired, Marn'i Washington, and FEMA are named as defendants on Florida's lawsuit. Washington said this week that FEMA was scapegoating her and that it was a common practice for the agency's teams to avoid some places based on past hostile interactions. FEMA said in an email that it does not comment on pending litigation. The agency did not respond to a request for comment on Washington's allegations that she is being scapegoated. Washington told journalist Roland Martin on his YouTube show earlier this week that FEMA was alleging she acted on her own accord and based on her own political allegiances. "However, if you look at the record, there is what we call a community trend," Washington said. "And unfortunately, it just so happened that the political hostility that was encountered by my team — and I was on two different teams during this deployment — they just so happened to have the Trump campaign signage." Sign up here. https://www.reuters.com/world/us/florida-sues-fema-alleging-discrimination-against-trump-supporters-2024-11-14/

2024-11-14 18:09

Minister will rebalance rules to protect financial industry Reforms prioritise growth in capital markets, fintech and others Policymakers reminded to regulate for growth as well as risk LONDON, Nov 14 (Reuters) - Finance minister Rachel Reeves on Thursday promised a reboot of regulation governing Britain's "crown jewel" financial industry, which she said has shackled the City's prospects since the global financial crisis and stifled British economic growth. In a speech at the City of London's ornate Mansion House, Reeves vowed not to take Britain's status as a global financial centre for granted and pledged a raft of growth-focused reforms. Her speech came as leaders across the industry brace for a possible bonfire of regulation on Wall Street during President-elect Donald Trump's second term in office, with leaner taxes and lighter rules on capital likely to widen an earnings gap between U.S. banks and their global competitors. "While it was right that successive governments made regulatory changes after the global financial crisis, to ensure that regulation kept pace with the global economy of the time, it's important we learn the lessons of the past," Reeves said. "These changes have resulted in a system which sought to eliminate risk taking. That has gone too far and, in places, it has had unintended consequences which we must now address." The former Bank of England economist proposed five areas to maximise growth in British financial services: capital markets, fintech, sustainable finance, asset management and wholesale services, and insurance and reinsurance. Reeves said the government would publish a financial services strategy early next year as part of a broader 10-year industrial plan. "The UK has been regulating for risk, but not regulating for growth," the chancellor said, announcing that she had written to the Bank of England and Britain's Financial Conduct Authority to instruct them to put greater effort towards supporting government growth goals as well as financial stability. BoE Governor Andrew Bailey, speaking immediately after Reeves, did not address her criticism of regulators but welcomed the government's focus on growth and recommended rebuilding trade ties with the European Union. Reeves and Prime Minister Keir Starmer promised voters in July's election that they would turn Britain into the fastest-growing Group of Seven economy after years of sluggishness. Her latest proposals were broadly backed by financiers. "It's crucial the UK's regulatory framework is effective and well-calibrated. We therefore welcome the chancellor's recognition of the need for a more balanced approach to risk," said Patrick Thomson, EMEA CEO of J.P. Morgan Asset Management and chair of Britain's Investment Association trade body. But campaign group Positive Money said Reeves appeared to have caved in to lobbyists. "Financial deregulation has a habit of ending in tears," said Simon Youel, Positive Money's head of policy and advocacy. INNOVATION Besides rebalancing rules that curb risk, the government is also exploring ways to help finance firms reduce costs linked to supervising less senior managers. Further action is being taken to jumpstart Britain's capital markets, with a commitment to establish by May 2025 a regulated market known as PISCES for trading private company shares in a tax-efficient manner. This pledge to boost investment in capital-starved British firms complements plans outlined on Wednesday to build a slew of "megafunds" in what the government said was the biggest shake-up in British pensions seen in decades. Reeves wants to consolidate about 60 public-sector defined contribution pension schemes and 86 local government pension schemes into eight structures large enough to bankroll ambitious infrastructure projects and undersupported growth firms. Britain's finance ministry also launched a consultation into encouraging more than 1,000 private-sector defined contribution pension schemes to merge, pointing to evidence a minimum size of 50 billion pounds ($63 billion) would boost their investment capability in infrastructure and private equity. A collapse in allocations to domestic assets among Britain's pension funds - forecast to hold 1.3 trillion pounds in assets by the end of the decade - is seen as one possible factor behind lacklustre economic growth. Britain will also pilot a "digital" government bond, or gilt, that uses distributed ledger technology, Reeves said. Mindful of its manifesto commitments to make Britain the global hub for green finance, Reeves said the government would join forces with the City of London Corporation, the governing body for London's financial district, to launch a transition finance council. The Treasury will also publish draft legislation for tighter regulation of environmental, social and governance ratings providers and a consultation on the value case for a UK Green Taxonomy to boost investor confidence in sustainable companies. The chancellor also committed to consult on economically significant companies disclosing information using future UK Sustainability Reporting Standards. Tackling one of the finance sector's greatest scourges, Reeves said she and the interior and science ministers had set tech and telecommunication firms a deadline of March 2025 to show how they are reducing fraud on their platforms. ($1 = 0.7895 pounds) Sign up here. https://www.reuters.com/world/uk/crisis-era-regulation-has-gone-too-far-reeves-tells-uk-finance-sector-2024-11-14/

2024-11-14 17:38

Average Q3 EPS for US refiners fell to 25 cents from $4.75 Shareholder returns stayed strong at $5.2 billion total Analysts expect refining margins to stay weak in fourth quarter NEW YORK, Nov 14 (Reuters) - Top U.S. refiners kept focused on shareholder returns with hefty stock buybacks and dividends in the third quarter even though profits fell due to weakening fuel demand and refining margins. Margins for gasoline, diesel and other products narrowed sharply from record levels hit after Russia invaded Ukraine in 2022. Fuel demand has softened since then, and new refining capacity has come online. In the third quarter, the average earnings per share for U.S. oil refiners fell to 25 cents from $4.75 in the same quarter a year ago and $4.85 in 2022, according to Reuters calculations. Combined, the three largest U.S. refiners returned more than $5.2 billion to shareholders through stock repurchases and dividends during the third quarter, Reuters calculations show, down only slightly from $5.9 billion in the previous quarter. Those companies rewarded shareholders with $6.5 billion in the same quarter a year ago and $6.81 billion two years ago. "While large refiners were not immune to the downturn in the refining market, they were still able to generate positive cash flows," Scotiabank analyst Paul Cheng said. Marathon paid out $3 billion to its shareholders and boosted its share repurchase plan by $5 billion. The Findlay, Ohio-based refiner has approximately $8.5 billion available under its share buyback authorizations. "We are committed to leading our peers in capital returns through all parts of the cycle," Chief Executive Officer Maryann Mannen told analysts during a conference call this month. While volatility could continue, the company remains constructive on the long term outlook, Mannen said. Year-to-date, shares of Valero are up 5.7% while Marathon is up about 6% and Phillips 66 is down 3.58%. That compares with the S&P 500 energy sector's (.SPNY) , opens new tab 13.03% increase so far this year. Weaker gasoline and diesel cracks in the third quarter weighed on refiners' profitability, said Matthew Blair, managing director at TPH&Co. Still, most companies kept their promises to reward their shareholders, Blair said. During the quarter, the U.S. gasoline crack spread fell to $11.73 a barrel in September, the lowest since November 2023. The diesel crack spread traded at $17.98 a barrel in September, its lowest since July 2021. Valero Energy returned $907 million to stockholders, a higher payout ratio than the same quarter a year ago, despite an 86% slump in third-quarter profit. The refiner's financial results reflected a period of heavy maintenance during a weak margin environment, Valero Chief Executive Lane Riggs said. Looking ahead, he added, refining margins should find support in export demand from Latin America and low product inventories through year end. Phillips 66 returned $1.3 billion to shareholders in the quarter even as costs, including those related to the upcoming closure of its Los Angeles refinery, put a dent in earnings. The Houston-based refiner reported earnings tumbled to $346 million in the third quarter from $2.1 billion a year earlier. Many analysts expect margins to remain weak throughout the fourth quarter with some refiners cutting back on share repurchases. "The fourth quarter is shaping up to be a pretty challenging one," said TPH&Co's Blair, adding that soft gasoline and distillate margins will continue to weigh on profitability. "Naturally as the earnings and cash flow come off, your buyback should come off," Scotiabank's Cheng said. Sign up here. https://www.reuters.com/business/energy/top-3-us-refiners-return-52-billion-shareholders-q3-despite-profit-slide-2024-11-14/

2024-11-14 13:48

Nov 14 (Reuters) - Futures tied to the Federal Reserve's policy rate edged down after data showed wholesale prices firmed a little more than expected last month, though not enough to suggest traders have lost confidence that the U.S. central bank will cut short-term borrowing costs again next month. After the data, which showed producer prices excluding food and energy rose 3.1% in the 12 months through October, traders priced in about a 75% chance of a quarter-point interest-rate cut in December, versus more than 80% before the data. They also lightened up a bit on their expectations for rate cuts next year, pricing in no more than two further quarter-point hikes for the whole of 2025. Sign up here. https://www.reuters.com/markets/us/traders-keep-bets-dec-rate-cut-after-latest-us-economic-data-2024-11-14/

2024-11-14 12:49

VALENCIA, Spain, Nov 14 (Reuters) - Spain's national weather service on Thursday downgraded bad weather alerts after powerful storms hit southern Malaga province and eastern Valencia, already battered by deadly flash floods two weeks ago, causing damage but no casualties. Local authorities maintained orange weather alerts, the second highest level, and continued caution in Andalusia and Valencia and referenced further storms in the provinces of Huelva, Cadiz, Seville, Alicante and Valencia. Emergency services in Malaga kept almost 4,000 people who were evacuated because of a flood risk out of their homes, while schools stayed closed in the province and in different towns in Granada, Sevilla, Cadiz and Huelva. Half a million children in total stayed away from Andalusian schools on Wednesday. "We continue to monitor (the storm's) progress in all provinces. Caution until the end," Andalusia regional head Juanma Moreno said on X on Thursday. The emergency committee in Valencia, where there were concerns about the potential impact of more rainfall in areas with significant quantities of mud already and damaged sewage systems, said the areas affected by the deadly storms were not hit this time. It lifted a ban on the use of private cars and allowed schools to reopen from midday after the worst of the storm passed, the spokesperson for the emergency committee, Rosa Touris, told reporters. High-speed trains between Madrid and Valencia, suspended since the Oct. 29 storm, were expected to resume from midday, and the train connection between Valencia and Barcelona also started running again on Thursday, the Transport Ministry said. The latest storms, and robust preparations for their arrival, came after fierce criticism, primarily of local authorities but also national government, for their level of preparation for and warnings to citizens about the Oct. 29 storm and resulting floods mainly in Valencia, which killed more than 200 people. Sign up here. https://www.reuters.com/world/europe/spain-downgrades-storm-warnings-after-towns-left-soaked-without-casualties-2024-11-14/