2024-10-25 15:40

JOHANNESBURG, Oct 25 (Reuters) - South Africa's rand firmed on Friday while local investors geared up for the country's mid-term budget next week. At 1510 GMT, the rand traded at 17.64 against the dollar , about 0.1% stronger than its previous close. The dollar last traded about 0.02% softer against a basket of currencies. With little domestic data on the radar, the risk-sensitive rand tracked movements in the greenback on Friday. Later on Friday, South African Reserve Bank Governor Lesetja Kganyago will give a talk on monetary policy after the COVID pandemic at the International Monetary Fund and World Bank's 2024 annual meeting. Next week, investors will look to South Africa's Medium Term Budget Policy Statement for clues on the fiscal outlook of Africa's most industrialised economy. The statement could provide insight into the country's budget deficit. A Reuters poll found that the National Treasury will trim its 2024/25 budget deficit estimate as it aims to lower interest payments on debt. On the Johannesburg Stock Exchange, the blue-chip Top-40 index (.JTOPI) , opens new tab closed about 0.1% higher. South Africa's benchmark 2030 government bond gained as the yield slipped 9 basis points to 9.275%. Sign up here. https://www.reuters.com/markets/currencies/south-african-rand-softer-focus-mid-term-budget-next-week-2024-10-25/

2024-10-25 13:24

Oct 25 (Reuters) - Canadian retail sales grew by 0.4% in August from July at C$66.63 billion ($48.11 billion), led by higher sales at motor vehicle and parts dealers, Statistics Canada said on Friday. Sales were likely up 0.4% in September, the agency said in a flash estimate. In August, sales were up in four of nine subsectors, representing 52.2% of retail trade. In volume terms, retail sales increased 0.7%. (Percent changes) Aug Aug Jul(rev) Jul(prev) mo/mo yr/yr mo/mo mo/mo Total +0.4 +1.4 +0.9 +0.9 Excluding autos/parts -0.7 -0.4 +0.3 +0.4 NOTE: All figures are seasonally adjusted. ($1=$1.3850 Canadian) Keywords: CANADA ECONOMY/RETAIL Sign up here. https://www.reuters.com/markets/canada-august-retail-sales-up-04-autos-seen-up-04-september-2024-10-25/

2024-10-25 12:39

DIVO, Ivory Coast, Oct 25 (Reuters) - Following heavy rain in much of Ivory Coast, pod counters and exporters are starting to lower their production forecasts for the main cocoa crop due to high flower and cherelle mortality after the October counts, they said Friday. Four pod counters and six exporters whose teams carry out monthly technical surveys on the growth of cherelles, the quantity of flowers on the tree trunks, the quantity of pods on the trees and the soil moisture content observed a worryingly low survival rate of cherelles and flowers in October compared to September and August. Cherelles are small pods the size of a finger. Cocoa flowers grow into cherelles, and then 22 weeks later, into pods. Charelles can turn yellow prematurely or even fall more easily from tree trunks when weather conditions are unfavourable. Heavy rains have flooded several plantations in Ivory Coast's west and southwest since the beginning of October. The pod counters and exporters said the low survival rate directly impacts the development of the production of the main harvest, which runs from October to March, and which was projected at 1.5 million tonnes in September. They said if the weather remains unfavourable, the harvest could reach only 1.30 million or 1.35 million tons. "There was too much rain in October and this accelerated the mortality rate of cherelles and flowers, which is currently around 60% to 70%, compared to an average of 25% over the last two months," said one pod counter. Another said he is seeing a flower and cherelle mortality rate of more than 65%, compared to 20% in September. "It's certainly worrying, especially in the west and the southwest ... We were not even able to visit some counting sites," he said. Cocoa bean arrivals in the ports of Abidjan and San Pedro are unlikely to be affected in the immediate future because existing pods are already developing. However, from January 2025, arrivals should fall sharply until April due to the high mortality rates of flowers and cherelles, the head of an international export company based in Abidjan said. "Our latest counts adjusted to the current situation give us an estimated production of around 1.30 million to 1.35 million tons, compared to 1.45 million in September," said the head of a European cocoa export company based in Abidjan. In the towns of Divo, Gagnoa, Soubre and Daloa, a dozen planters interviewed by Reuters said they are happy with the current level of production, which is high compared to last season, but all confirmed a shortage of flowers and cherelles which are needed to maintain high production levels after December. Sign up here. https://www.reuters.com/markets/commodities/ivory-coast-cocoa-pod-counters-lower-main-crop-forecasts-after-rain-2024-10-25/

2024-10-25 12:29

LONDON, Oct 25 (Reuters) - U.S. broker Clear Street, which is seeking membership of the London Metal Exchange's (LME) open outcry trading floor, has poached three metal traders from Sigma Broking, two sources familiar with the matter said. A unit of the broker, Clear Street Futures headed by Chris Smith, is planning a major expansion in LME metals trading, one of the sources said. Smith was previously the London-based global CEO at ED&F Man Capital Markets, acquired in 2022 by Marex , another LME broker. "Chris has been a presence in metals trading for a long time," the second source said. "Starting a metals trading operation, any trading operation, is a major undertaking." Two of the Sigma traders going to Clear Street Futures were previously at ED&F Man Capital Markets with Smith, the sources said. Clear Street and Sigma did not respond to Reuters' requests for comment. Industry sources say Smith is also in the process of hiring sales staff and will be looking to hire operations people. Clear Street's plan for floor trading or Category 1 membership of the LME would take the number of dealing members on Europe's last open-outcry venue back to eight after Societe Generale (SOGN.PA) , opens new tab said in August it would leave the floor. The 147-year-old LME owned by Hong Kong Exchanges and Clearing (0388.HK) , opens new tab, proposed closing the floor or ring trading three years ago, to join other exchanges with only electronic trading, but opposition from the physical market persuaded the LME to row back on its plans. Ring trading now operates on a hybrid basis. Open-outcry trading is used for determining official prices used by physical users as benchmarks for their contracts and an electronic system for closing prices. UK-based Sigma Broking Limited became the first new LME floor member of the London Metal Exchange in 14 years in 2021. Gary Petitt, CEO of Sigma, was also at ED&F Man Capital Markets in the position of UK CEO. After SocGen said it would no longer take part in LME floor trading, a Reuters survey showed that almost all the remaining firms remained committed to open-outcry trading, but Sigma declined to comment. Sign up here. https://www.reuters.com/markets/commodities/clear-street-poaches-metals-traders-lme-floor-trader-sigma-sources-2024-10-25/

2024-10-25 12:13

NEW DELHI, Oct 25 (Reuters) - German Economy Minister Robert Habeck on Friday said agriculture should be excluded from a free trade deal between the European Union and India in order to speed up negotiations for an agreement. Habeck is in India with a high-level German government delegation. The EU and India have tried to secure a deal for years on free trade but without success. Habeck on Thursday had called farming the most problematic sector to deal with and suggested focusing on industry first. India's trade ministry earlier said a free trade deal cannot be agreed upon if there is an insistence on getting access to the Asian country's dairy sector. Sign up here. https://www.reuters.com/world/india/exclude-farming-eu-india-trade-deal-german-minister-says-new-delhi-2024-10-25/

2024-10-25 12:11

July Ndlovu sees bouyant prices from coal supply squeeze Climate scientists urging rapid phrase out of coal Investment and licences ever harder to get for new mines Asia market offsets cuts from rich nations JOHANNESBURG, Oct 25 (Reuters) - New coal investment may be drying up as the world seeks greener energy, but for miners like South Africa's Thungela Resources (TGAJ.J) , opens new tab that could be a boon if Asia's ravenous appetite keeps prices bouyant, its CEO said on Friday. Since its demerger from Anglo American in 2021, South Africa's Thungela has pursued a strategy 100% hitched to coal, even while some investors shun the black stuff as a liability in a world under pressure to decarbonise. "No new mines are being built as a result of either no capital or no licenses," July Ndlovu told Reuters in a virtual interview from Australia, where he said the Ensham mine Thungela acquired a year ago has seen output rise rapidly by a third to reach close to a 4 million tonnes target it had by 2026. "If you've got long life, competitive assets which are low cost, those assets are going to be very valuable," he said, adding that he currently had no new acquisitions planned. After a coal rush to offset gas supply interruptions in the wake of Russia's 2022 Ukraine invasion, rich nations have continued to sharply cut consumption in order to meet 2015 Paris Agreement pledges to reduce greenhouse gas emissions. That, plus economic troubles in top consumer China, has weighed on prices. Yet they remain much higher than they were for more than a decade before the eight months leading up to the Ukraine war. Asian demand remains strong, Ndlovu said, which was "offsetting the decline in demand in the other regions". "I think in the short to medium term, certainly up to 2030 ... we're going to see flat to marginal growth ... driven primarily by Asia," he said. South Africa's coal shipments have been dampened by logistical problems at state-owned ports and rail company Transnet, devastating earnings of coal producers like Thungela, Exxaro Resources (EXXJ.J) , opens new tab and Glencore (GLEN.L) , opens new tab, although those logistical problems have since eased. Climate scientists say the world must swiftly abandon the world's most carbon-intensive fuel - cancelling the building of new power stations and retiring existing plants early - to stand a chance of limiting warming to well below an average 2 degrees Celsius above pre-industrial levels by 2050. "I think they are both unrealistic and premature. I've not seen a scenario which is zero coal," Ndlovu said, adding that if there ever was: "We'll be the ones delivering the last tonne." ($1 = 17.6725 rand) Sign up here. https://www.reuters.com/markets/commodities/thungela-ceo-sees-world-shunning-new-coal-boon-existing-mines-2024-10-25/