2024-10-28 12:14

LONDON, Oct 28 (Reuters) - British retailers reported a fall in sales for October as consumers held off on spending ahead of this week's budget announcement by finance minister Rachel Reeves, the Confederation of British Industry said on Monday. The CBI's monthly retail sales survey - conducted between Sept. 26 and Oct. 15 - showed the headline balance dropped to -6 from +4 in September. "Retail sales volumes slipped back slightly in October, with some firms highlighting increased consumer caution ahead of this week's Autumn Budget as a key factor," CBI Principal Economist Martin Sartorius said. The survey showed retailers expected a flat performance in November. Measures of consumer and business confidence have dipped before Wednesday's first tax-and-spending announcement of the new government which Prime Minister Keir Starmer has warned will include painful measures to fix the country's public finances. Sign up here. https://www.reuters.com/world/uk/uk-shoppers-cut-back-spending-ahead-budget-cbi-says-2024-10-28/

2024-10-28 11:31

BEIJING, Oct 28 (Reuters) - Chinese refiner Sinopec (600028.SS) , opens new tab posted a 52.1% year-on-year decline in net profit to 8.54 billion yuan ($1.2 billion) for the third quarter because of lower oil prices and weak refining margins. The world's largest refiner by capacity, Sinopec's third-quarter revenue was 790.4 billion yuan, down 9.8% from a year earlier, the company said in a stock market filing on Monday. Also on Monday, domestic peer and offshore oil and gas major CNOOC Ltd (600938.SS) , opens new tab reported a 9% increase in quarterly profit to 36.93 billion yuan as higher output offset lower prices. Between January and September, Sinopec processed 190.69 million metric tons of crude oil, or 5.08 million barrels per day, down 1.6% from a year earlier, while refined fuel output fell 0.8% to 116.6 million tons. Refinery output was dragged down by a drop in diesel production, which fell 10.7% to 43.29 million tons. Gasoline output rose 4.1% to 49.21 million tons and jet fuel gained 10.5% to 24.1 million tons. Sales of refined fuels rose 0.6% year-on-year in the first nine months to 181.67 million tons. Of that, domestic sales made up 138.06 million tons, down 3.2%. The company said China's apparent consumption of gasoline, diesel and jet fuel fell 1% during the first nine months, dragged down by falling diesel demand. Domestic consumption of natural gas rose 9.5% during the period and ethylene consumption grew 3.9%. Sinopec also produced 211.29 million tons of crude oil during the first three quarters of 2024, up 0.3% on the year, while natural gas output rose 5.6% to 1,048 billion cubic feet. Capital expenditure for the first nine months reached 86.35 billion yuan, down from 108.16 billion in the year-earlier period. Of that, 50.77 billion went to exploration and development, primarily at the company's pilot shale oil field in eastern China's Jiyang, its Tahe oilfield in Xinjiang, and its Chuanxi gas field in Sichuan. The chemicals segment also dragged down the results, incurring a net loss of 4.9 billion yuan. Sinopec's Hong Kong-listed shares have risen 10.27% year-to-date, underperforming the Hang Seng index (.HSI) , opens new tab which has risen 20.84% during the period. (metric ton = 7.3 barrels for crude oil conversion) Sign up here. https://www.reuters.com/markets/commodities/sinopecs-q3-earnings-fall-521-lower-oil-prices-refining-margins-2024-10-28/

2024-10-28 11:30

NAPERVILLE, Illinois, Oct 27 (Reuters) - Speculators recently pared their bearish Chicago corn bets to the lowest levels in over a year as supply uncertainties ramped up across global grain and oilseed markets. Some of those concerns, such as dryness in South America, have waned for now, though other factors like strong U.S. demand and geopolitical worries may have recently limited price losses. In the week ended Oct. 22, money managers trimmed their net short position in CBOT corn futures and options to 71,499 contracts from 86,988 a week earlier. That is slightly less bearish than their year-ago net short near 100,000 contracts. However, funds’ moves in the latest week somewhat clashed, suggesting a lack of consensus over corn market direction. Money managers through Oct. 22 added more than 38,000 gross long positions, the most for any week in almost two years. But they also packed on almost 23,000 gross shorts during the week, which featured gains of near 4% in CBOT corn futures . A similar degree of losses had been observed in the prior week, when funds were heavily increasing gross shorts. New short bets dominated in CBOT soybeans for a second consecutive week, and money managers through Oct. 22 raised their net short to 59,574 futures and options contracts from 40,341 a week earlier. They had been near flat in this week a year ago. Most-active CBOT soybeans were unchanged during the week, but soymeal and soyoil rose 2% and 3%, respectively. Money managers expanded their net long in soybean meal futures and options to 56,448 contracts, up 737 on the week. Their net long in CBOT soybean oil futures and options reached the highest level in just over a year, rising to 40,649 contracts from 26,938 a week earlier. Money managers in soyoil have both added longs and covered shorts in recent weeks, though much more prominently on the latter. Over the last couple months, funds have not materially changed their views on CBOT wheat futures and options, which hover near the least bearish levels in two years. Their net short stood at 28,915 contracts as of Oct. 22, up nearly 3,000 on the week. LOOKING AHEAD CBOT wheat futures eased fractionally in the week ended Oct. 22 but then slid even further late last week, falling 2% on Friday alone. Wetter forecasts for the dry U.S. Plains stood to boost winter wheat prospects, and parts of top exporter Russia have recently received much-needed rain. Russia earlier this month proposed plans for an international grains exchange among BRICS members to gain more control over global prices, but late last week it was revealed the efforts could take years to get started. CBOT corn and soybeans drifted slightly lower in the last three sessions while meal plunged almost 4%, hitting two-month lows on Friday. But CBOT soybean oil notched gains between Wednesday and Friday, lifted by strength in global vegoils. Malaysian palm oil futures last week hit their highest levels in more than two years on production declines and policy moves in the top two producers. Traders this week will be monitoring U.S. export demand, especially for corn, which recently recorded the best weekly sales volume since early 2021. Both commodity and equity markets could be impacted by jitters ahead of the U.S. Presidential election on Nov. 5. Karen Braun is a market analyst for Reuters. Views expressed above are her own. Sign up here. https://www.reuters.com/markets/europe/funds-ideas-cbot-corn-diverge-amid-futures-rally-2024-10-28/

2024-10-28 11:14

TSX closes up 0.36%, ends five-day losing streak Rally led by financials, consumer goods, healthcare Analyst says rise shows more risk-on sentiment Brent crude drops by 5%, pulling energy stocks down Oct 28 (Reuters) - A rally across an array of sectors from consumer goods to healthcare and financials to technology helped Canada's main stock index to reverse a five-day losing streak on Monday. The S&P/TSX composite index (.GSPTSE) , opens new tab ended the day up 88.96 points, or 0.36%, at 24,552.63, almost recouping losses of the last two trading sessions. The advance, which was largely broad-based, was primarily led by healthcare, financials and consumer goods, each of which were either above or just around 1% up. Analysts said consumer confidence was growing stronger on the back of falling inflation and easing interest rates, which prompted buying activity across sectors despite a drop in crude oil prices. While healthcare has minimal weighting on the composite index, financials (.SPTTFS) , opens new tab contribute nearly a third of the index. Consumer goods, including essentials and non-discretionary goods, has close to around 8% weight. The rally is "emblematic of a shift toward more risk-on sentiment and growing investor confidence," said Brandon Michael, senior investment analyst at ABC Funds. The rise came even as energy stocks (.SPTTEN) , opens new tab, which are another TSX heavyweight sector led by a clutch of oil companies, lost close to 0.9% of its value due to a drop in crude oil prices. Brent crude price plunged by over 5% on Monday after Israel's limited retaliatory strike against Iran did not disrupt energy supplies. The reversal of losses in TSX comes right at the beginning of what most analysts see as two crucial weeks packed with economic data, corporate earnings and the U.S. elections. "The next two weeks are very pivotal for the stock market," Michael said. Quarterly earnings are due this week from U.S. heavyweights including Apple (AAPL.O) , opens new tab, Microsoft (MSFT.O) , opens new tab, Alphabet (GOOGL.O) , opens new tab, Amazon (AMZN.O) , opens new tab, and Meta (META.O) , opens new tab among others, and the U.S. Presidential election on Nov. 5. "How these catalysts play out will define the market's path forward into year end and 2025," he said. Domestic traders will also watch results from companies such as Canadian Natural Resources (CNQ.TO) , opens new tab and Enbridge (ENB.TO) , opens new tab as well as Thursday's August GDP report - the first major dataset since the Bank of Canada's half-point rate cut last week. This week's U.S. Personal Consumption Expenditures index, along with the country's third-quarter GDP data and non farm payrolls report could shed more light on the Federal Reserve's monetary policy move next week. With the U.S. presidential campaign approaching its final stretch, investors evaluated the prospects of Donald Trump returning to the White House as market bets favored the former president's reelection. Sign up here. https://www.reuters.com/markets/tsx-futures-edge-lower-ahead-weeks-earnings-data-2024-10-28/

2024-10-28 11:11

JAKARTA, Oct 28 (Reuters) - Malaysian state energy firm Petronas plans an "aggressive" expansion in Indonesia that will see it create a hub for its operations in East Java and invest in exploration in the country's far-flung eastern regions, its Indonesia head said on Monday. Indonesian President Prabowo Subianto's government, which took office this month, has pledged to bolster energy development, aiming to reverse a decades-long decline in output by the former OPEC member. Yuzaini Md Yusof, head of Petronas in Indonesia, said the company was encouraged by recent regulatory steps that made it easier to develop energy projects. Petronas operates four oil and gas blocks in Indonesia - three of them in East Java region, in the western part of the archipelago - and has participating interests in several others. It plans to create a hub for the three operations in East Java by linking their production facilities and integrating logistic facilities, he said. "Our first strategy is to grow bigger in the East Java area," Yusof told Reuters, without sharing investment figures. "And the next long term plan is for us to expand our business portfolio in eastern Indonesia." East Java is expected to benefit from a pipeline project due to be completed in December 2025 that will connect supply from the eastern side of the island to demand in the densely-populated western part, and Petronas wants to expand its business there. Its North Ketapang block is in the exploration phase, while Hidayah field in North Madura II block is expected to produce the first oil by 2027. Petronas is also developing a new gas field in Ketapang block. "With that connection of this infrastructure project, it has created attractiveness for the operators and companies that are working in the East Java area," Yusof said. In eastern Indonesia, Petronas has a 15% interest in the Masela gas project and this year signed a production sharing contract for the Bobara block offshore West Papua. Bobara, which the government estimates has 6.8 billion barrels of oil equivalent, will be Petronas' first deep-water project in Indonesia as operator. Petronas is exploring the potential to bring in a partner for the block, Yusof said. "These two block acquisitions reaffirm our commitment to unlocking the potential in the eastern Indonesia area, where most of that area is frontier, which is very high risk and not many operators have gone through," Yusof said. Sign up here. https://www.reuters.com/business/energy/petronas-plans-significant-expansion-indonesia-country-head-says-2024-10-28/

2024-10-28 10:58

Lufthansa expects five-year delay on Boeing 777X deliveries Airlines forced to fly older models Lufthansa reports results on Oct. 29 Air France-KLM hit by lower ticket bookings tied to Paris Olympics BA to cancel some long-haul flights due to engine delivery delays LONDON, Oct 28 (Reuters) - Europe's major airlines including Lufthansa and Air France-KLM are expected to report another quarter dragged down by rising costs and limited planes, with no sign of delivery delays from planemakers Boeing and Airbus improving any time soon. While demand has remained stable, costs for maintenance, adverse weather, air traffic control issues and disruption in the Middle East have continued to weigh on carriers. Delays of new plane deliveries are the biggest ongoing headache, though, forcing airlines to fly older models that are more expensive to maintain and use more jet fuel and cut traffic estimates. Lufthansa (LHAG.DE) , opens new tab Chief Executive Carsten Spohr warned the airline is now expecting a five-year delay on its Boeing (BA.N) , opens new tab 777X deliveries. "We don't expect to get them until 2026. And we need them," he told journalists earlier this month. The German carrier is expected to report on Tuesday a third-quarter operating profit of 1.3 billion euros ($1.4 billion), down 9% from a year ago and a margin of 12.1%, according to a company-led analyst poll. The airline is losing up to $550,000 per flight on its route from Frankfurt to Beijing as a result of flying older jets with few passengers, according to a Bloomberg report, as it struggles with competition from Chinese carriers who still fly over Russian airspace. "European airlines are in an extremely unequal competitive position with China, as well as with airlines from the Persian Gulf and Bosporus," a Lufthansa spokesperson told Reuters in an emailed statement. "All airlines from these countries benefit from low location costs, different social standards and high government investment in the aviation sector." British Airways, owned by IAG (ICAG.L) , opens new tab, has said it will cancel more long-haul flights due to delivery delays from engine maker Rolls-Royce (RR.L) , opens new tab. Air France-KLM (AIRF.PA) , opens new tab is also set to take a hit on third-quarter revenue, according to analysts, due to lower ticket bookings tied to the Paris Olympics. It reports results on Nov. 7. These challenges have dragged airline shares down in the last six months. And while they've recovered slightly in the last month, investor worries over the sector's health have prevailed. Only IAG has seen a substantial hike in its share price, up over 20% in the last six months as it continues to build on its strength in the North Atlantic market and faces fewer delivery delays. The airline is expected to report on Nov. 8 an operating profit of 1.78 billion euros, according to a company-led analyst consensus, up 2% from last year. BLEAK OUTLOOK Some airlines have said that the worst is yet to come. Delivery delays could hit harder in 2026 as current supply chain issues impact new plane production. That said, with fewer available seats due to constrained capacity, airlines can charge higher fares if demand stays robust as it is expected to, analysts say. But that dynamic does not seem to be playing out. "Ordinarily one might expect a lower level of capacity as a result of these delays to boost results, in a robust demand environment. Yet most carriers in Europe and North America are producing disappointing results," said Neil Glynn, managing director at AIR Control Tower. They will also get a financial boost next year from lower jet fuel prices if they lower the amount of hedges they have. ($1 = 0.9228 euros) Sign up here. https://www.reuters.com/business/aerospace-defense/european-airlines-q3-struggle-with-plane-delays-high-costs-2024-10-28/