2024-11-08 11:32
PARIS, Nov 8 (Reuters) - Cartier owner Richemont(CFR.S) , opens new tab plans to stick to its cautious approach to raising prices of jewellery despite the soaring price of gold in recent months, and has no plans yet for price increases in the upcoming months, executives said on Friday. "We've been extremely cautious at maintaining the actual activity of our retail pricing on the price of gold," Richemont chief executive officer Nicolas Bos told analysts on Friday. As the luxury industry grapples with a downturn and shoppers become pickier about what they buy, high end brands have faced questions about whether price hikes since the pandemic were pushed too far. Gold prices have had an impact on purchasing costs and margins of the group and the company, which also owns labels Van Cleef & Arpels and Buccellati has over the past 12 months implemented "a few, but very limited and very targeted" price increases in certain countries where there were exchange rate fluctuations. "We will continue to be cautious," said Bos. The executive stressed the Richemont's efforts to keep price differences between regions as low as possible in order to limit sales to resellers, who purchase goods in one region with the intention of selling them elsewhere. Global geopolitical uncertainty, including tensions in the Middle East, has sent gold prices soaring. Sign up here. https://www.reuters.com/business/retail-consumer/richemont-remains-cautious-raising-jewellery-prices-despite-high-gold-prices-2024-11-08/
2024-11-08 11:07
Nov 8 (Reuters) - Sterling was within striking distance of its highest level in more than 2-1/2 years against the euro on Friday as investors bet the European Central Bank would follow a faster monetary easing path than the Bank of England. The BoE cut interest rates on Thursday for the second time since 2020 and said future reductions were likely to be gradual, as it predicted the British government's first budget would lead to higher inflation and economic growth. Last week's budget, with its heavy borrowing and spending, prompted investors to dial back their bets on the pace of further rate cuts. Investors expect the ECB to be more dovish than the BoE as the euro-zone economy is likely to be hit harder than the UK's if incoming U.S. President Donald Trump implements higher tariffs when he takes office on Jan. 20. However, analysts' views about the BoE easing path and its impact on the British currency remained mixed. "We think there is a gap to be filled on the dovish side in the Sterling Overnight Index Average's (Sonia) curve," said Francesco Pesole, forex strategist at ING. SONIA is the risk-free reference rate for the sterling market. "Such repricing may, however, take some time to show, and the rate/growth differential with the euro zone means there should be continued resistance on a substantial shift higher in the euro/sterling cross," he added. The pound was down 0.05% at 83.24 pence per euro . In mid-October, it hit 82.97 pence, its highest level since April 2022. Rabobank sees the UK bank rate at 3.75% at the end of 2025 and no rate cut in December. Money markets expect the ECB deposit and facility rate to fall to 2% by June from the current 3.25%. Sterling was down 0.25% against the dollar at $1.2956. Lee Hardman, senior forex strategist at MUFG, said he expected the euro to move closer to support from the 0.8200 level, which the pair hasn't traded below since the initial fallout from the Brexit referendum in June 2016. He also sees the bullish implications for the U.S. dollar from a Trump victory and the likely Red Sweep, which will cap further upside for cable beyond the 1.3000 level. Sign up here. https://www.reuters.com/markets/currencies/sterling-close-2-12-year-high-versus-euro-policy-rate-bets-2024-11-08/
2024-11-08 11:07
A look at the day ahead in U.S. and global markets from Mike Dolan Wall Street's S&P500 (.SPX) , opens new tab looks poised to test 6,000 for the first time as the Federal Reserve underscored a post-election stock surge with its second interest rate cut of the year on Thursday and a nod to more. Overseas, Friday's focus was on China's widely expected debt-raising stimulus plans - although the readout was these were in line with prior indications and China's yuan , bond yields and stocks (.CSI300) , opens new tab all edged lower. Already lifted to record highs by this week's quick and decisive election results and the prospect of President-elect Donald Trump's promised tax cuts, the S&P500's 25% year-to-date gains are the biggest by this stage of the year in almost 30 years. December S&P stock futures crossed the 6,000 mark for the first time on Thursday and tried to retain a foothold there overnight. The VIX (.VIX) , opens new tab "fear index" of implied equity volatility probed below 15 for the first time in over a month. Although the final results are still awaited, it now seems all but certain Trump's Republican party will have a "clean sweep" of Congress too - bolstering tax cutting speculation alongside his tariff raising pledges. But the Fed's expected quarter-point rate cut late yesterday also helped calm restive Treasury markets as Chair Jerome Powell indicated further easing was in store even though the economy has strengthened and core inflation remains elevated. Fed futures now see a 90% chance of another quarter point cut next month and almost 100 basis points of easing are priced through the end of next year. Ten-year U.S. Treasury yields slipped back below 4.3% on Friday and Treasury volatility gauges plunged back to their lowest in a month. Powell indicated that as long as encouraging disinflation trends persisted the Fed would continue a gradual process of getting interest rates back to a neutral level well below current levels and said it would not react to speculation about government policy shifts until concrete plans were presented. But in an intriguing press conference exchange about whether Trump would allow him to remain as Fed Chair, Powell insisted he would not step down a year early even if asked to do so. "Not permitted under the law," he replied. Earlier on Thursday CNN quoted a Trump advisor saying Powell would be allowed to serve as Chair until his term expires in May 2026 but also that Trump was considering either former Fed Governor Kevin Warsh, a persistent Fed critic, or former White House economist Kevin Hassett as replacements. There's some concern that naming a likely successor early may undermine Powell's policy statements in the final months of his tenure. As Trump starts to name his cabinet, markets now await his pick for Treasury Secretary. Following the relatively dovish take from the Fed - compared to initial post-election speculation at least - and softer Treasury yields, the dollar (.DXY) , opens new tab remained on the backfoot on Friday - but held about half of its initial post-election surge. Sterling was firm and gilt yields retreated after Thursday's Bank of England rate cut too - with the Bank lifting next year's inflation forecast due to the recent government stimulus but confident it could keep reducing rates gradually nonetheless. Markets, however, don't see the next UK rate cut until February at the earliest. The euro slipped again as investors eyed the unfolding German political crisis. Germany's conservative opposition leader Friedrich Merz on Friday described Chancellor Olaf Scholz's decision to delay a parliamentary confidence vote in his government until 2025 as "irresponsible" and as the chances of a early election rise. After a frenetic couple of weeks of critical events, Friday's diary is mercifully thin. Stocks in Asia and Europe were generally lower, with many investors now trying to parse the risks of a widening global trade war as Trump takes office and details of his draconian tariff plans are awaited. Key developments that should provide more direction to U.S. markets later on Friday: * Awaiting final election results for House of Representatives * University of Michigan November sentiment survey; Canada Oct employment report * Federal Reserve Board Governor Michelle Bowman speaks * US corporate earnings: Paramount Global, Baxter, NRG Sign up here. https://www.reuters.com/markets/us/global-markets-view-usa-2024-11-08/
2024-11-08 11:03
TOKYO, Nov 8 (Reuters) - The Japanese steel industry is feeling a "sense of crisis" as the country's steel imports for the April-September period reached a 10-year high, with supply from China hitting a record high, an executive of Nippon Steel (5401.T) , opens new tab said on Friday. "We informed the government that we are closely monitoring overall steel imports and have a sense of crisis regarding the current trend," Takashi Hirose, Nippon Steel's executive vice president, told reporters following the monthly meeting between the industry ministry and steel industry representatives. Japan, the world's third-largest steel producer, saw steel imports rise to 2.8 million metric tons in the first six months of the current fiscal year ending in March, marking the highest since 2014, according to Hirose. Ordinary steel imports, excluding special steel, grew 10% from a year earlier to 2.55 million tons, the highest since 2000, with supply from China hitting a record high of 0.48 million tons, Hirose said. "There is growing concern that the countries like Japan, which have not implemented any trade measures, will become targets for Chinese steel exports," Hirose said, noting many countries have already taken trade action against Chinese steel. China, the world's largest steel producer and exporter, has so far in 2024 shipped more than last year's 90.26 million tons, fuelling trade friction with countries ranging from Indonesia and Turkey to the U.S. Exports in the first 10 months of the year jumped 23% from a year earlier to 91.89 million tons, on track to top 100 million tons for the year. "We are consulting closely with the Japanese government," Hirose said, though he declined to comment on specifics. He also declined to address potential impacts from future actions by a U.S. administration under Donald Trump. The Japanese government may take trade measures if needed in response to growing steel exports from China, an industry ministry official said in October. Sign up here. https://www.reuters.com/markets/commodities/japan-steel-industry-feels-sense-crisis-imports-hit-10-year-high-2024-11-08/
2024-11-08 10:56
PARIS, Nov 8 (Reuters) - France has stepped up its bird flu risk assessment to 'high' from 'moderate', it said on Friday in a decree that will trigger reinforced security measures around poultry farms. Highly pathogenic avian influenza, commonly called bird flu, has been spreading faster among poultry in the European Union this season than in 2023, raising concerns of a repeat of previous crises that led to poultry deaths in the tens of millions and fears it could lead to human-to-human transmission. The heightened risk status follows confirmation of infection in migratory wild birds in neighboring countries and aims to strengthen surveillance and prevention measures, the agriculture ministry said. The change in status will take effect on Saturday. The upgrade to risk status in the seasonal assessment is kicking in earlier than last year, taking effect in early November rather than December. France has reported eight bird flu outbreaks on farms since the summer and last month launched a second vaccination campaign among farm ducks after a successful programme last year. The British government said on Tuesday that cases of bird flu had been confirmed at premises in Yorkshire, hours after it increased the risk level of the disease to 'high'. Sign up here. https://www.reuters.com/world/europe/france-raises-bird-flu-risk-high-eu-cases-spread-2024-11-08/
2024-11-08 10:33
NEW DELHI, Nov 8 (Reuters) - India's rice inventories surged to an all-time high of 29.7 million metric tons in November, sources said on Friday, nearly three times the government's target, as export curbs imposed over the past two years bumped up local supplies. Higher stocks would allow the world's biggest rice exporter to boost shipments without worrying about domestic supplies, which were limited last year and led New Delhi to restrict exports of all grades. Rice reserves in state granaries totalled 29.7 million tons at the start of this month, up 48.5% from a year ago, said the sources who did not wish to be named in line with official rules. In the middle of overflowing grain bins, Indian farmers have gathered a record rice crop of 120 million tons from this year's summer season, which accounts for nearly 85% of total rice output. As the new crop rolls in, stocks at the Food Corporation of India (FCI) - the state stockpiler - are set to increase further in the months to come, raising storage concerns in the world's second-biggest rice producer. The FCI is expected to buy 48.5 million tons of the new summer-sown rice in the marketing year that began on Oct. 1, up from 46.3 million tons bought from farmers in 2023-24. "Rice stocks are substantially higher, and stock levels will go up only because of bumper production in the new season," a senior government official said. This year's copious monsoon rains also prompted farmers to expand planting areas. Concerned over patchy monsoon rains, India imposed export curbs last year. However, New Delhi allowed exports of all grades except 100% broken rice this year. Removing export curbs would accelerate exports in the coming months and reduce the government's pressure to procure rice, said B.V. Krishna Rao, an exporter. Farmers from India's breadbasket states of Punjab and Haryana complain that FCI has slowed down its purchases of the new season rice crop due to storage issues, forcing growers to wait at wholesale grain markets. Rice stocks have backed up at the wholesale markets, leading to losses for farmers, said Ramandeep Singh Mann, a farmer from Punjab. Farmers incur extra costs because they are forced to wait at the markets with their crops loaded onto tractor trolleys, and long delays in the open could also spoil the crop, Mann said. "Seeing the delays in wholesale markets, some farmers have not even harvested their rice crop," said Devinder Sharma, an independent farm food policy expert. "The time is running out for harvests." Sign up here. https://www.reuters.com/markets/commodities/indias-rice-inventories-hit-record-high-triples-govt-target-2024-11-08/
