2024-10-24 10:43
KAMPALA, Oct 24 (Reuters) - Uganda's currency is seen strengthening against the dollar in the next week to Thursday, while Ghana's could weaken and Kenya's and Nigeria's are expected to be broadly unchanged, traders said. UGANDA Uganda's shilling is seen trading with a firming bias in the coming week, helped by hard-currency inflows from charities and commodity exporters. Commercial banks quoted the shilling at 3,660/3,670 to the dollar, compared to last Thursday's close of 3,670/3,680. "We normally receive an increase in inflows toward end of month so I anticipate that dynamic to play out in the coming days," one trader said. The shilling will likely trade in a range of 3,640-3,670 to the U.S. currency, he said. Charities convert some of their donations from foreign currency into shillings to meet operational expenses like salaries. GHANA Ghana's cedi could weaken further on seasonal demand for dollars, as companies in the commerce and manufacturing sectors stock up ahead of the festive period. LSEG data showed the cedi trading at 16.10 to the dollar on Thursday, compared to 15.99 at last Thursday's close. "FX illiquidity has plagued the local unit in recent sessions and has seen the cedi depreciate considerably as a result. Demand for hard currency has come from both local and offshore participants," said Sedem Dornoo, senior trader at Absa Bank Ghana. "Locally, demand seems to be driven primarily by the manufacturing sector. In the coming week, I expect to see continued pressure on the cedi as demand for the greenback remains strong," he added. One trader said the central bank's forward auctions had not fully dealt with foreign-currency demand on the interbank market, weighing on the cedi. NIGERIA Nigeria's naira is seen relatively stable, buttressed by central bank interventions to meet rising foreign-currency demand from importers stocking up for the festive season. The naira was quoted at 1,676 to the dollar on the official market on Thursday, LSEG data showed, compared with a closing rate of around 1,663 naira a week earlier. The currency was changing hands much weaker in street trading at 1,728 naira to the dollar. "I don't think the central bank will allow it run too far from where we are," one trader said. KENYA Kenya's shilling is expected to remain unmoved as month-end payroll and tax commitments offer support. Commercial banks quoted the shilling at 128.50/129.50 per U.S. dollar, the same as last Thursday's closing rate. Sign up here. https://www.reuters.com/markets/currencies/africa-fx-ugandas-currency-seen-gaining-while-ghanas-could-drop-2024-10-24/
2024-10-24 10:42
FRANKFURT, Oct 24 (Reuters) - German wages are continuing to grow briskly despite a shrinking economy as workers regain more of the purchasing power they lost to high inflation, the country's central bank said on Thursday. The German economy, Europe's largest, has barely grown in two years, hit by a surge in energy costs following Russia's invasion of Ukraine, weaker global demand and tough competition from China in the car and solar energy sectors. But its labour market, particularly in services, remains tight and workers are still in the process of regaining the standard of living they had before the surge in inflation. This meant that wage growth remained high -- with collective wage agreements up 6.2% between January and August compared to a year earlier, according to the Bundesbank. It calculated wage growth of 4% for the last quarter of next year based on already signed agreements. This would still be above the 3% pace that the European Central Bank sees as compatible with its 2% inflation target, assuming 1% growth in productivity. "These findings do not fundamentally call into question the expected disinflation process in Germany," the Bundesbank said in its monthly report. "However, in addition to productivity developments and companies' profit margins, the labour market situation is of great importance for the speed and extent of disinflation." The ECB has listed higher-than-expected wage growth as the number one risk to its expectations for a stabilisation of inflation at its 2% target. For now, however, real wages in Germany were 2% below the level they had attained in the third quarter of 2021 in the services sector and 4% in manufacturing. The Bundesbank added that gross domestic product likely shrank again in the third quarter of this year but the country should avoid "a significant, broad-based and prolonged decline in economic output". "From today's perspective, economic activity could broadly stagnate in the fourth quarter," the Frankfurt-based central bank said. Sign up here. https://www.reuters.com/world/europe/german-wage-catch-up-continues-even-economy-shrinks-bundesbank-says-2024-10-24/
2024-10-24 10:35
TSX ends down 0.1% at 24,551.55 Materials sector falls 0.7% Teck Resources ends 5.4% lower Celestica jumps 18.3% Oct 24 (Reuters) - Canada's main stock index fell for the fourth straight day on Thursday, weighed by declines for utilities and metal mining shares, as investors assessed recent increases in long-term borrowing costs and awaited corporate earnings releases. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) , opens new tab ended down 22.07 points, or 0.1%, at 24,551.55, extending its pullback from a record closing high on Friday. It was the longest daily losing streak since September. "It's one of those weeks where no one is interested in buying stocks," said Barry Schwartz, chief investment officer at Baskin Wealth Management. "We're waiting for the earnings to start to come out for the Canadian companies." Some of Canada's major energy companies, such as Canadian Natural Resources Ltd (CNQ.TO) , opens new tab, are due to report next week. Bank earnings are due in December. The materials sector, which includes fertilizer companies and metal mining shares, fell 0.7% as Teck Resources Ltd beat third-quarter profit estimates but cut its full-year copper production forecast. Teck's shares lost 5.4%, while shares of Rogers Communications (RCIb.TO) , opens new tab were down 1.6% as the company missed market expectations for third-quarter wireless subscriber additions. "Although the short-end of the (interest) rate curve has moved down, the long-end has moved up, so that's not helping the dividend payers," Schwartz said. The Bank of Canada has cut its benchmark interest rate by 125 basis points since June to 3.75%, including a larger-than-usual half-percentage-point reduction on Wednesday. Still, Canadian bond yields have moved higher in recent weeks, tracking an upward shift in U.S. rates. The utilities sector, which contains many high-dividend paying stocks, was down 0.6%. In contrast, technology rose 1.3%, benefiting from an 18.3% jump in the shares of Celestica Inc (CLS.TO) , opens new tab after the company reported third-quarter results. Sign up here. https://www.reuters.com/markets/tsx-futures-rise-strength-oil-metal-prices-2024-10-24/
2024-10-24 08:03
NEW DELHI, Oct 24 (Reuters) - Signs of thawing ties a day after the leaders of India and China met are unlikely to deter New Delhi's plans to back tariffs on steel as they are not country-specific measures, a senior government official with direct knowledge of the matter said. Mills in the world's second-biggest producer of crude steel have been battling an influx of cheap imports, particularly those from China, which touched a seven-year high during the period from April to August. China's surging steel exports have sparked complaints from a growing number of countries, with some, such as Turkey and Indonesia, having imposed anti-dumping duties, saying a flood of cheap Chinese steel hurts domestic manufacturers. Last week, Reuters reported that India's steel ministry was backing a temporary tariff or "safeguard duty", a broad measure that also covers countries with which the South Asian nation has free trade pacts. But a day after Prime Minister Narendra Modi and Chinese President Xi Jinping held their first formal talks in five years on the sidelines of a BRICS summit in Russia, the source said the thaw had not led to a change in the tariff plan. "If it is put up, it will be against everybody, all countries," added the source, who spoke on condition of anonymity, as deliberations are not public. "Safeguard is not directed against any particular country." A decision on the plan to levy such a tariff would take up to six months, the source added. Spokespersons for India's ministries of steel and finance did not immediately respond to a Reuters email to seek comment. Rapid economic growth and higher infrastructure spending have turned India into a global hotspot for growth in steel demand as markets stay subdued in Europe and the United States. New Delhi has been a net importer since last financial year. India's top steel producers, such as JSW Steel (JSTL.NS) , opens new tab, Tata Steel (TISC.NS) , opens new tab and ArcelorMittal Nippon Steel India, have raised concerns about cheaper imports from China. On Wednesday, the two most populous nations, both nuclear powers, agreed to boost communication and co-operation to mend ties frayed after a military clash on their Himalayan frontier in 2020 that killed 20 Indian and four Chinese troops. Sign up here. https://www.reuters.com/markets/commodities/thaw-china-ties-unlikely-deter-indias-plans-steel-tariffs-source-says-2024-10-24/
2024-10-24 07:55
MOSCOW, Oct 23 (Reuters) - Below are the key points from the Kazan declaration , opens new tab issued by the BRICS group after a summit in Russia. ON UKRAINE: "We emphasize that all states should act consistently with the Purposes and Principles of the UN Charter in their entirety and interrelation. We note with appreciation relevant proposals of mediation and good offices, aimed at a peaceful resolution of the conflict through dialogue and diplomacy." ON THE MIDDLE EAST: "We reiterate our grave concern at the deterioration of the situation and humanitarian crisis in the Occupied Palestinian Territory, in particular the unprecedented escalation of violence in the Gaza Strip and in West Bank as a result of the Israeli military offensive, which led to mass killing and injury of civilians, forced displacement and widespread destruction of civilian infrastructure." "We express alarm over the situation in Southern Lebanon. We condemn the loss of civilian lives and the immense damage to civilian infrastructure resulting from attacks by Israel in residential areas in Lebanon and call for immediate cessation of military acts." ON WESTERN SANCTIONS: "We are deeply concerned about the disruptive effect of unlawful unilateral coercive measures, including illegal sanctions, on the world economy, international trade, and the achievement of the sustainable development goals." ON THE INTERNATIONAL FINANCIAL SYSTEM'S REFORM: "We underscore the need to reform the current international financial architecture to meet the global financial challenges including global economic governance to make the international financial architecture more inclusive and just." ON BRICS GRAIN EXCHANGE: "We welcome the initiative of the Russian side to establish a grain (commodities) trading platform within BRICS (the BRICS Grain Exchange) and to subsequently develop it including expanding it to other agricultural sectors." ON BRICS CROSS-BORDER PAYMENT SYSTEM: "We recognise the widespread benefits of faster, low cost, more efficient, transparent, safe and inclusive cross-border payment instruments built upon the principle of minimizing trade barriers and non-discriminatory access. We welcome the use of local currencies in financial transactions between BRICS countries and their trading partners." ON BRICS CLEAR DEPOSITARY: "We agree to discuss and study the feasibility of establishment of an independent cross-border settlement and depositary infrastructure, BRICS Clear, an initiative to complement the existing financial market infrastructure, as well as BRICS independent reinsurance capacity, including BRICS (Re)Insurance Company, with participation on a voluntary basis." ON FINANCIAL INNOVATION: "We welcome the BRICS Interbank Cooperation Mechanism (ICM) focus on facilitating and expanding innovative financial practices and approaches for projects and programmes, including finding acceptable mechanisms of financing in local currencies." ON THE IMF: "We reaffirm our commitment to maintaining a strong and effective Global Financial Safety Net with a quota-based and adequately resourced IMF at its centre." ON G20: "We recognise the importance of the continued and productive functioning of the G20, based on consensus with a focus on result-oriented outcomes." ON PREVENTION OF FUTURE PANDEMICS: "We support the initiatives of the BRICS R&D Vaccine Center, further development of the BRICS Integrated Early Warning System for preventing mass infectious diseases risks." ON BIG CATS: "While appreciating the efforts of our countries to preserve rare species and noting the high vulnerability of big cats, we take note of the Republic of India’s initiative to create an International Big Cats Alliance and encourage BRICS countries to work together to make further contributions to the conservation of big cats." Sign up here. https://www.reuters.com/world/factobox-main-points-brics-declaration-2024-10-23/
2024-10-24 07:55
Adjusted EBITDA 7.37 bln crowns, slightly ahead of expectations Extrusions volumes fall, especially in North America and Europe Shares rise 1.6% in early trade Oct 24 (Reuters) - Norwegian aluminium producer Norsk Hydro (NHY.OL) , opens new tab reported a slightly bigger-than-expected rise in its third-quarter core profit on Thursday, supported by higher aluminium and alumina prices, lower raw material costs and positive currency effects. Aluminium makers like Norsk Hydro are well positioned for growth fuelled by rising demand for low-carbon products and elevated prices, while Chinese alumina prices remain high due to bauxite sourcing challenges. Alumina, a key material derived from bauxite, is refined to produce aluminium, the lightweight metal used in everything from cars to beverage cans. The Platts Alumina Index (PAX) gradually increased to $562 per tonne by the quarter-end as global alumina supply tightened. Norsk Hydro's adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) jumped 89% from a year earlier to 7.37 billion crowns ($672.12 million) in the July-September quarter. Analysts on average , opens new tab had expected a profit of 7.26 billion crowns, according to a company-compiled consensus. "The positive development in our upstream revenue drivers continued in the third quarter... countering the overall effects of the challenging downstream market," CEO Eivind Kallevik said in a statement. Meanwhile, extrusions volumes declined, especially in North America and Europe due to weak demand in automotive and construction sectors, tempering the company's growth. Norsk Hydro's European aluminium volumes have fallen this year due to lower electric vehicle production, stemming from Germany's unexpected termination of EV subsidies earlier this year and the looming EU tariffs on Chinese imports. Shares of the company were up 1.6% in early trade, outperforming a 0.5% rise in the STOXX 600 index (.STOXX) , opens new tab. Norsk Hydro delivered solid results, though weaker fourth-quarter guidance reflects ongoing challenges in the extrusions market and higher fixed costs, J.P. Morgan analysts said. Barclays highlighted potential upside from stronger-than-expected alumina pricing going into the fourth quarter. ($1 = 10.9653 Norwegian crowns) Sign up here. https://www.reuters.com/markets/commodities/aluminium-producer-norsk-hydros-core-profit-rises-slightly-more-than-expected-2024-10-24/
