2024-11-11 10:53

BERLIN, Nov 11 (Reuters) - Sweden's Vattenfall (VATN.UL) wants to invest five billion euros ($5.34 billion) in climate-friendly energy products in Germany in the coming years, its local CFO said on Monday. The company intends to use the funds to build charging stations as well as wind and solar parks in the country by 2028, German finance chief Robert Zurawski said. "Germany is the fastest-growing market for renewable energy in Europe," he said. Vattenfall wants to increase its solar park capacity in Germany to around 500 megawatts per year, while also increasing capacity at its large-scale battery storage business to 300 megawatts annually, Zurawski said. He added that the combination of both technologies would ensure that consumers' electricity demand could be met despite fluctuating solar production. Vattenfall's planned offshore wind power plants Nordlicht I and II will go into operation by 2028, Zurawski said. The projects, with a planned output of 1.6 gigawatts, could generate enough electricity to cover the annual consumption of more than 1.7 million German households. Vattenfall already operates two wind farms in Germany. ($1 = 0.9360 euros) Sign up here. https://www.reuters.com/sustainability/climate-energy/vattenfall-invest-5-bln-euros-germanys-clean-energy-market-2024-11-11/

2024-11-11 10:12

MUMBAI, Nov 11 (Reuters) - The Indian rupee slipped to an all-time low on Monday, pressured by weakness in regional currencies and sustained outflows from local equities but central bank intervention helped avoid sharp losses, traders said. The currency ended at 84.3925, eclipsing its previous record low of 84.3875 hit last week. The currency was down 0.02% on the day. Dollar demand from oil companies and foreign banks, likely on behalf of custodial clients, kept the rupee under pressure, a salesperson at a foreign bank said. Overseas investors have pulled out a net of about $2.5 billion from Indian stocks over November so far, adding to the $11 billion of outflows in October. Benchmark Indian equity indices, the BSE Sensex (.BSESN) , opens new tab and Nifty 50 (.NSEI) , opens new tab, closed nearly flat on the day. Asian currencies were down between 0.1% to 0.6% while the dollar index was up 0.3% at 105.3, hovering close to a four-month high hit last week following Donald Trump's victory in the U.S. election. The offshore Chinese yuan, a closely-watched peer of the rupee, was down 0.2% at 7.21. China unveiled a stimulus package on Friday which disappointed investors who had anticipated a greater fiscal push. Analysts expect Trump's policies to put upward pressure on U.S. inflation and bond yields, while limiting the Federal Reserve's scope to ease policy. "We see the dollar strengthening into year-end," ING Bank said in a note. The bank reckons the dollar index may consolidate in the 104.5-105.5 range before breaking higher. Meanwhile, dollar-rupee forward premiums declined with the 1-year implied yield dropping to an over two-month low of 2.10%, pressured by strong receiving interest from foreign banks. Sign up here. https://www.reuters.com/markets/currencies/rupee-slips-record-low-avoids-sharp-losses-cenbank-intervention-2024-11-11/

2024-11-11 08:25

Indian assets better placed to weather any Trump-led policy impacts India's robust economy, limited exposure to US-China markets bolster appeal Indian bonds seen as attractive diversification, rupee offers good carry MUMBAI, Nov 11 (Reuters) - Global investors are likely to find relative safety in India's financial markets from the spillover of Donald Trump's economic policies, including from any protectionist trade policies that could spark emerging market volatility. Trump's decisive election victory last week and his impending return to the White House next month has raised significant uncertainty for investors. However, India's strong economic growth, limited exposure to Chinese and the U.S. consumer market, robust local appetite for equities and a central bank devoted to ensuring currency stability will bolster the country's appeal amid global unease, investors and analysts say. Stocks in Asia's third-largest economy are also likely to find support from strong domestic buying due to Indian companies' limited reliance on export revenues. That's significant as markets fear Trump will reintroduce his 'America First' policies, raising the spectre of a global trade war. China is at the frontline of risk as the former president has threatened tariffs of 60% or more on all Chinese imports, which is likely to heap more pressure on the world's second-biggest economy. Tariffs on China are expected to negatively impact export-oriented Asian economies, according to analysts at Societe Generale, who see India as better positioned than Korea and Taiwan to cope with the fallout. "Without any major fiscal announcement, China is likely to face downward pressure from Trump's victory," said Sat Duhra, a Hong Kong based portfolio manager on the Asia (ex-Japan) equity team at Janus Henderson Investors. Some investors had pivoted away from India to buy Chinese stocks last month but "there could be a reversion back to India in a quicker than expected time frame" because of its status as a safe haven, Duhra said. While foreign investors pulled out a record $11.2 billion from Indian equities in October, domestic institutional investors' stock purchases rose to an all-time high of about $12.7 billion in the same month, limiting the benchmark indexes' fall. Domestic investors see India benefiting from supply chain diversification of U.S. companies, in sectors like electronic manufacturing, chemicals, and pharmaceuticals, said Trideep Bhattacharya, president and chief investment officer for equities at Edelweiss Mutual Fund. India's economic fortunes have also shifted since the last Trump presidency when GDP was slower versus a robust 8.2% pace in the most recent financial year ended March 2024. One potential dampener for global investors is the elevated valuations of Indian equities. The MSCI India index, which covers approximately 85% of India's equity assets, trades at an average 12-month forward price-to-earnings (PE) ratio of 22.8, well above the PE ratio of 12.08 for MSCI's emerging market stocks. Zurich-based Vontobel Asset Management is cautious on Indian equities but is bullish on the country's sovereign bonds and finds the rupee to be an appealing carry trade currency. Indian government bonds represent an attractive diversification while the central bank's FX policy of stabilisation makes the rupee one of the best risk adjusted carry trades, Carl Vermassen, a fixed income portfolio manager at Vontobel, said. The country's government bonds joined the JPMorgan global emerging market debt index earlier this year and are set to be included in two more global bond indices in 2025. The rupee is "blissfully uncorrelated to other EM currencies while at the same time presenting a high beta to the dollar. This makes it a unique EM asset," Vermassen said. While the rupee hit a record low on Nov. 6 as U.S. elections pointed to a Trump comeback, its 0.2% decline was muted compared to regional peers which fell as much as 1.7%. Sign up here. https://www.reuters.com/markets/investors-see-safety-india-trump-win-casts-shadow-emerging-markets-2024-11-11/

2024-11-11 08:02

BAKU, Nov 11 (Reuters) - The annual U.N. climate summit kicked off Monday with countries readying for tough talks on finance and trade, following a year of weather disasters that have emboldened developing countries in their demands for climate cash. Here's what the summit leaders had to say at the opening ceremony: COP29 PRESIDENT MUKHTAR BABAYEV "Colleagues, we are on a road to ruin. But these are not future problems. Climate change is already here. "Whether you see them or not, people are suffering in the shadows. They are dying in the dark and they need more than compassion, more than prayers and paperwork. They are crying out for leadership and action. COP29 is the unmissable moment to chart a new path forward for everyone. "We need much more from all of you. "COP29 is a moment of truth for the Paris Agreement. It will test our commitment to the multilateral climate system. We must now demonstrate that we are prepared to meet the goals we have set ourselves." OUTGOING COP28 PRESIDENT SULTAN AL JABER "I urge you all to prove once again that we can unite, act and deliver. "Let me leave you with some final words of advice: Let positivity prevail and let it power the process. Let actions speak louder than words. Let results outlast the rhetoric. And remember, we are what we do, not what we say." UNFCCC CLIMATE CHIEF SIMON STIELL "Here in Baku, we must agree a new global climate finance goal. If at least two thirds of the world's nations cannot afford to cut emissions quickly, then every nation pays a brutal price.  "If nations can’t build resilience into supply chains, the entire global economy will be brought to its knees. No country is immune. "So, let's dispense with the idea that climate finance is charity. An ambitious new climate finance goal is entirely in the self-interest of every nation, including the largest and wealthiest. "But it’s not enough to just agree a goal. We must work harder to reform the global financial system. Giving countries the fiscal space they so desperately need."  Sign up here. https://www.reuters.com/world/africa/cop29-leaders-speak-summit-formally-opens-2024-11-11/

2024-11-11 07:24

JOHANNESBURG, Nov 11 (Reuters) - South Africa's rand slumped on Monday, buffeted by global headwinds including a softer gold price, the sputtering Chinese economy and uncertainty over future U.S. policy after Donald Trump's election victory. At 1514 GMT, the rand traded at 17.9375 against the dollar , down about 2% on Friday's closing level. The U.S. dollar last traded about 0.6% firmer against a basket of currencies. "At the moment, it (the rand) is in a washing machine, being churned around by a weak euro, gold coming lower and lack of guidance on Chinese stimulus," said Adam Phillips, treasury specialist at Umkhulu Treasury. The rand has swung wildly since Trump's election win last week, falling steeply on Wednesday before recovering on Thursday only to sink again on Friday. Some analysts think that volatility could persist into January when Trump takes over as president. Potential policy changes from the U.S. president-elect include tariffs and tax cuts. Those measures could put upward pressure on U.S. inflation, limiting the Federal Reserve's scope to ease monetary policy and supporting the greenback. Later this week the domestic focus will be on third-quarter unemployment numbers (ZAUNR=ECI) , opens new tab, September manufacturing output (ZAMAN=ECI) , opens new tab and September mining production (ZAMNG=ECI) , opens new tab. On the Johannesburg Stock Exchange, the blue-chip Top-40 index (.JTOPI) , opens new tab closed 0.4% down. The benchmark 2030 government bond was also weaker, with the yield up 5.5 basis points to 9.225%. Sign up here. https://www.reuters.com/markets/currencies/south-african-rand-stable-local-jobs-data-focus-this-week-2024-11-11/

2024-11-11 07:20

Brent, WTI fall $2 a barrel US dollar index hits highest level since early July China's stimulus package falls short of expectations HOUSTON, Nov 11 (Reuters) - Oil prices fell by more than 2% on Monday after China's latest stimulus plan disappointed investors seeking demand growth in the world's second-biggest oil consumer, while supply looked set to rise in 2025. Brent crude futures settled at $71.83 a barrel, down$2.04 or 2.76%. U.S. West Texas Intermediate crude futures finished at $68.04 a barrel, down $2.34, or 3.32%. Both benchmarks fell more than 2% on Friday. Donald Trump's U.S. election victory may continue to affect the market, said Phil Flynn, senior analyst for the Price Futures Group. "The election with Trump's promise to 'drill, baby, drill' has taken away some incentive to go long," Flynn said. The U.S. dollar index , a measure of its value relative to a basket of foreign currencies, slightly overshot the highs seen right after last week'sU.S. presidential election, with markets still waiting for clarity about future U.S. policy. A stronger dollar makes commodities denominated in the U.S. currency, such as oil, more expensive for holders of other currencies and tends to weigh on prices. In China, consumer prices rose at the slowest pace in four months in October while producer price deflation deepened, data showed on Saturday, even as Beijing doubled down on stimulus to support the sputtering economy. "Chinese inflation figures were again weak, with the market fearing deflation, particularly as the yearly change in the producer price index fell further into negative territory ... Chinese economic momentum remains negative," said Achilleas Georgolopoulos, a market analyst at brokerage XM. Bank of America Securities said in a note on Monday that non-OPEC crude supply was expected to grow by 1.4 million barrels per day (bpd) in 2025 and 900,000 bpd in 2026. "Meaningful non-OPEC growth next year and an unconvincing Chinese stimulus package likely mean inventories will swell even without OPEC+ increases," Bank of America noted. In late September, OPEC+ said it would boost supply in December by 180,000 bpd, but earlier this month an agreement was reached among the member and allied countries to postpone the supply expansion until January. The U.S. offshore production regulator said 25.7% of crude oil production and 13% natural gas output remains shut because of Hurricane Rafael, which by Monday broke apart and was only a remnant storm in the central Gulf of Mexico. Sign up here. https://www.reuters.com/markets/commodities/oil-slips-us-storm-threat-eases-china-stimulus-disappoints-2024-11-11/