2024-11-07 20:33

CAIRO/DUBAI, Nov 7 (Reuters) - Most central banks of the Gulf Cooperation Council (GCC) cut key interest rates on Thursday, following the Federal Reserve's decision to reduce U.S. rates by a quarter of a percentage point. The Fed cut interest rates by 25 basis points as policymakers took note of a job market that has "generally eased" while inflation continues to move towards its 2% target. The Gulf's oil and gas exporters generally follow the Fed's lead on rate moves as most regional currencies are pegged to the U.S. dollar; only the Kuwaiti dinar is pegged to a basket of currencies, which includes the dollar. "Lower rates in the GCC could fuel growth in sectors sensitive to credit conditions, such as real estate and domestic spending, enhancing resilience in the broader economy," Vijay Valecha, chief investment officer at Century Financial, said. Saudi Arabia, the region's biggest economy, cut its repurchase agreement (Repo) rate and reverse repo rate by 25 bps each to 5.25% and 4.75% respectively and the United Arab Emirates also reduced its base rate on the overnight deposit facility by a quarter of a percentage point to 4.65%. Most regional economies have been largely shielded from stubbornly high inflation elsewhere, and have implemented ambitious plans to diversify revenue sources and boost non-oil growth. In Qatar, the central bank opted to cut its three main interest rates by a slightly deeper 30 bps, while Bahrain's central bank stuck with a 25 bps reduction in its overnight deposit rate. Growth among the GCC's biggest economies is expected to accelerate next year amid higher oil output, according to a recent Reuters poll, while inflation is projected to remain subdued this year and next with median forecasts ranging from 0.8% to 3.0%. Sign up here. https://www.reuters.com/markets/rates-bonds/most-gulf-central-banks-follow-fed-lead-cut-key-interest-rates-2024-11-07/

2024-11-07 20:18

Canadian dollar gains 0.6% against the greenback Trades in a range of 1.3851 to 1.3948 Price of U.S. oil settles 0.9% higher Bond yields ease across the curve TORONTO, Nov 7 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Thursday as the Federal Reserve cut interest rates and investors grew less anxious about the prospect of tariffs disrupting Canada's economy. The loonie was trading 0.6% higher at 1.3860 to the U.S. dollar, or 72.15 U.S. cents, after trading in a range of 1.3851 to 1.3948. On Wednesday, the currency posted its biggest decline since April, falling 0.8%, as investors globally reacted to the outcome of the U.S. presidential election. Republican President-elect Donald Trump has proposed sweeping tariffs on imported goods. Canada sends about 75% of its exports to the United States, including oil. "We're in the post-election mode where the market says that Trump didn't really mean it when it came to tariffs," said Adam Button, chief currency analyst at ForexLive. "In any election there's campaign rhetoric and there's actual policy and the market is navigating in that space right now and pricing in a Donald Trump that's similar to the first version." The Fed cut interest rates by a quarter of a percentage point, adding to the half-percentage-point reduction the U.S. central bank delivered in September. The Bank of Canada has also lowered borrowing costs. Canada's employment report for October, due on Friday, could guide expectations for further easing. Economists project a jobs gain of 25,000, with the unemployment rate edging up to 6.6% from 6.5% in September. The price of oil rose as U.S. drillers cut output while bracing for Hurricane Rafael. U.S. crude oil futures settled 0.9% higher at $72.36 a barrel. Canadian government bond yields moved lower across the curve, tracking moves in U.S. Treasuries. The 10-year was down 7.5 basis points at 3.236%. Sign up here. https://www.reuters.com/markets/currencies/canadian-dollar-rebounds-investors-rethink-tariff-risk-2024-11-07/

2024-11-07 20:05

SOCHI, Russia, Nov 7 (Reuters) - Russia has increased fertilizer exports to India and is ready to increase it further, Russian President Vladimir Putin said on Thursday while addressing the Valdai Discussion Club. At the start of 2024, Russia was supplying a third of India's fertilizer imports. Sign up here. https://www.reuters.com/world/india/putin-says-russia-has-increased-fertilizer-exports-india-ready-increase-further-2024-11-07/

2024-11-07 20:03

SAO PAULO/BRASILIA, Nov 7 (Reuters) - Brazil's government denied on Thursday a report by CNN Brasil saying its highly anticipated package to rein in mandatory expenses would involve cuts of up to just 15 billion reais ($2.6 billion), an amount the market views as insufficient. CNN Brasil reported that President Luiz Inacio Lula da Silva was reviewing two spending cut proposals, one for 10 billion reais and another for 15 billion reais, the latest aimed at the health and transportation sectors. "It is important to note that this information does not reflect the discussions underway between the economic team, other ministries, and the Presidency," the Finance Ministry said in a statement. The report had prompted a further weakening of the Brazilian real against the U.S. dollar, while some short-term interest rate futures hit session highs, and Brazil's equities benchmark Bovespa (.BVSP) , opens new tab reversed early gains. Analysts told Reuters Brazil needed a package containing 30 billion to 50 billion reais in spending cuts to reduce the risk premium on Brazilian assets, which have been affected by uncertainties surrounding public debt sustainability and volatility tied to the U.S. elections. The central bank cited the need for structural fiscal measures as it accelerated monetary tightening on Wednesday with a 50 basis-point rate hike, bringing rates to 11.25%. Previously, Finance Minister Fernando Haddad said the government would announce measures after the municipal elections concluded in late October to extend the lifespan of new fiscal rules introduced by Lula last year. The fiscal framework combines primary budget targets with a cap for overall spending growth to a certain threshold above inflation. However, with many mandatory expenses - such as social benefits and pensions - growing at a faster rate, the framework restricts room for investments and operational spending. Numerous economists warn that without reforms to change spending dynamics, the framework could become unsustainable in a few years, limiting its effectiveness in controlling Latin America's largest economy rising public debt. ($1 = 5.6822 reais) Sign up here. https://www.reuters.com/world/americas/brazils-lula-analyze-spending-cuts-up-26-bln-says-local-media-2024-11-07/

2024-11-07 19:49

CDC expands testing for farm workers exposed to bird flu CDC recommends Tamiflu and protective gear for high-risk workers CDC not seeing changes to virus that would lead to easier transmission Nov 7 (Reuters) - Farm workers who have been exposed to animals with bird flu should be tested for the virus even if they do not have symptoms, the U.S. Centers for Disease Control and Prevention said on Thursday. The change to the agency's testing recommendation comes as the U.S. Department of Agriculture is also expanding its testing of milk for bird flu, signaling concern by both agencies about the ongoing spread of the virus on dairy and poultry farms. Bird flu has infected nearly 450 dairy farms in 15 states since March, according to USDA data. The CDC is not seeing mutations in the virus that would lead to easier transmission or evidence of person-to-person spread, agency officials said on a press call. The CDC has identified 46 human cases of bird flu since April, though farm worker groups have suggested the figure is an undercount as workers avoid testing for fear of economic repercussions from quarantining or because their symptoms are too mild to warrant concern. Disease experts have warned that as the virus circulates, the risk of it more easily infecting humans increases, which could lead to a pandemic. "There may be individuals who were infected with H5 but who do not recall having symptoms. That means that we in public health need to cast a wider net in terms of who is offered a test," Nirav Shah, CDC's principal deputy director, said on the call with reporters. Recent testing of 115 dairy farm workers in Michigan and Colorado who were exposed to cows infected with H5N1 bird flu found that 7% of them had evidence of prior infection, but only half remembered having symptoms, according to a CDC study released on Thursday. The June through August serological study found evidence of antibodies to the virus in eight workers involved in milking and cleaning milking parlors. The CDC is also recommending offering the antiviral drug Tamiflu to workers with high risk exposures to sick animals and widening its guidance for worker protective equipment, including eye protection. The USDA last week said it would begin testing bulk milk for bird flu after a push from industry and veterinary groups concerned about the virus' spread. A pig on an Oregon farm tested positive for bird flu for the first time in the U.S. on Oct. 30, concerning virologists because pigs have been a source of prior human pandemics. The USDA said on Nov. 6 that a second pig on the farm had also tested positive. Sign up here. https://www.reuters.com/business/healthcare-pharmaceuticals/us-expands-bird-flu-testing-after-finding-symptom-free-infections-people-2024-11-07/

2024-11-07 19:11

Nov 7 (Reuters) - Over 22% of crude oil production and 9% of natural gas output in the U.S. Gulf of Mexico was shut in response to Hurricane Rafael, the U.S. Bureau of Safety and Environmental Enforcement said on Thursday. Energy producers had shut in 391,214 barrels per day of oil production and nearly 181 million cubic feet of natural gas from Gulf waters, the bureau said. Sign up here. https://www.reuters.com/business/energy/over-22-crude-oil-production-shut-us-gulf-mexico-due-hurricane-rafael-2024-11-07/