2024-10-24 04:32
A look at the day ahead in European and global markets from Rae Wee Markets in Europe on Thursday will be focused on a raft of preliminary Purchasing Managers' Index (PMI) readings, particularly from the euro zone, where growth prospects have become a source of concern among investors and policymakers. Business activity in the bloc is expected to have remained in contractionary territory this month, keeping pressure on the European Central Bank (ECB) to make its next rate cut sooner rather than later. ECB President Christine Lagarde said on Wednesday the central bank would need to be cautious when deciding on further easing and take its cues from incoming data, although sources have told Reuters that policymakers are already starting to debate whether rates have to go below neutral to stimulate the economy. Futures pricing shows that traders currently see rates falling below 2% by June next year. All of that has weighed on the euro , which is down more than 3% for the month thus far and on track for its steepest monthly decline since April 2022. The common currency struggled to gain momentum on Thursday, languishing near its weakest level since early July. PMI figures for the UK and the U.S. will also be released later in the day, although growth in those economies is likely to fare much better than in their euro zone counterpart. The International Monetary Fund said earlier this week that the U.S. economy would continue to be the main driver for global growth through the balance of this year and in 2025, bolstering bullish bets on the dollar. The U.S. currency has drawn further support from uncertainty over the upcoming U.S. election and rising market bets on a possible win by Republican presidential candidate Donald Trump. Bears are also beginning to circle the Chinese yuan , which is bound to feel the heat of bigger trade tariffs in the event of a Trump victory. In other news, Boeing (BA.N) , opens new tab factory workers voted on Wednesday to reject a contract offer and continue a more than five-week strike, in a blow to investor and management hopes of a resolution to the acrimonious dispute. The union vote against the deal, which offered a 35% rise in wages over four years, reflects years of resentment among workers who felt cheated in talks a decade ago and threatens to deepen a financial crisis at the company. Key developments that could influence markets on Thursday: - Euro zone, France, Germany flash PMIs (October) - UK flash PMI (October) - U.S. flash PMI (October) - U.S. weekly jobless claims - Various speeches from Bank of England, European Central Bank and Federal Reserve policymakers Sign up here. https://www.reuters.com/markets/europe/global-markets-view-europe-2024-10-24/
2024-10-24 04:14
Abu Dhabi, Dubai vie for investor attention Abu Dhabi has gained momentum-sources Ease of regulations, sovereign wealth funds draw new firms to Abu Dhabi Dubai remains ahead with over 370 wealth managers and vibrant financial district as of end-June DUBAI, Oct 24 (Reuters) - Abu Dhabi is emerging from Dubai's shadow as it attracts its own share of asset managers' and billionaires wealth, helping cement United Arab Emirates' role as an alternative to global financial hubs. Lacking rich oil reserves, Dubai has built up over the past two decades its position as the region's No. 1 financial centre, with its allure of low taxes, the application of English common law and exposure to the region's brisk economic growth. Globally, Dubai ranks 16th in the latest tally from the Global Financial Centres Index , opens new tab, while Abu Dhabi is 35th, with both number one and two, respectively, for the Middle East and Africa region. But over the past few years Abu Dhabi, which holds 90% of UAE's oil reserves, has accelerated efforts to diversify its economy, leaning on its vast wealth and sovereign funds that together manage almost $2 trillion to boost non-oil growth. The emergence of companies in a range of new sectors and potential for business created by Abu Dhabi's investments have not gone unnoticed in the international financial community. "It's completely changed in the past year, there's been an influx of money managers, hedge funds, alternatives etc. coming to conferences to raise funds here," said Ryan Lemand, co-founder and CEO of Abu Dhabi-based fund management and investment advisory firm, Neovision Wealth Management. Some have already set up shop in Dubai, or increasingly, Abu Dhabi to gain an edge over those travelling from London, New York, or Hong Kong to drum up new business. Lemand was speaking ahead of this week's Alternative Investment Management (AIM) Summit in Dubai that drew hundreds of institutions from across the globe, including names like Brevan Howard and JPMorgan Asset Management. While statistics for both centres are not entirely comparable, they show Dubai remains well ahead. The Dubai International Financial Centre currently has so far over 420 wealth and asset management firms operating in the city, its head of wealth and asset management said at the AIM conference. There were no recent figures for Abu Dhabi and data from end of June showed 112 fund firms registered there. The latter, has clear momentum, though, according to eight attendees of the AIM Summit. NEW ARRIVALS They cited rising company registrations, the draw of sovereign wealth funds and the ease of obtaining a license to operate compared with other financial centres and now at par with Dubai's. They spoke on background because the subject matter was sensitive to their business. Billionaire Ray Dalio, founder of hedge fund Bridgewater Associates, and other hedge funds including Brevan Howard are among those who now have a presence in Abu Dhabi. Asset managers PGIM, the investment management arm of U.S. insurer Prudential Financial (PRU.N) , opens new tab, and Nuveen are also new additions. General Atlantic, a New York based private equity firm with $83 billion under management, is also set to join after it received preliminary approval. A further dozen or so asset managers and hedge funds have been approved in principle, according to data from Abu Dhabi Global Market, the city's financial centre. Abu Dhabi is the world's richest city when measured by the assets held by sovereign wealth funds, sitting on $1.7 trillion, with such funds managing around $500 billion in Dubai, according to a Global SWF report released earlier this month. An employee at one investment firm, who declined to be named, said the bigger presence of sovereign wealth funds served as an incentive to set up in Abu Dhabi. For both centres the ease and clarity of regulations has been a major draw for financial investors. "The regulatory environment is extremely favourable," said Brandon Robinson deputy head of private markets at JPMorgan Asset Management. UAE's ambition to become a global centre for the crypto industry, with the regulator for the emerging sector operating in Dubai since 2022 is also wooing new players. The United States lacks an overarching national framework, while European Union rules are coming into force this year, placing UAE ahead of global financial hubs. Brevan Howard does a significant amount of its crypto trading from UAE, Ryan Taylor, group head of compliance at the hedge fund, told the AIM conference. Both cities also work hard to boost tourism and property investment and for some Dubai, with a longer record of drawing international finance and vibrant entertainment, was still ahead. Boasting the world's tallest skyscraper, Dubai had a clear edge in the number of night clubs and high-end restaurants and, as one hedge fund professional described it, the city's financial district was "buzzing." Sign up here. https://www.reuters.com/world/middle-east/dubai-abu-dhabi-race-lure-worlds-wealth-managers-2024-10-24/
2024-10-24 03:06
WASHINGTON, Oct 23 (Reuters) - Japanese Finance Minister Katsunobu Kato issued a warning against currency speculation on Wednesday, expressing concern over "one-sided, rapid" moves in the currency market that have been driving down the yen's value. "It's important for currency rates to move stably. We are watching exchange-rate moves with heightened vigilance, including for any speculative moves," Kato told reporters after attending the first-day session of the Group of 20 finance leaders' gathering. Kato said the G20 finance leaders did not discuss currency rate moves at Wednesday's meeting, and are unlikely to do so at the second-day session on Thursday. The dollar climbed above 153 against the yen for the first time in nearly three months on Wednesday, as solid U.S. data diminished market expectations of aggressive interest rate cuts by the Federal Reserve. Japan last conducted yen-buying intervention in late July to support its currency after it tumbled to a 38-year low below 161 per dollar. While a weak yen gives exporters a boost, it has become a source of concern for policymakers by hurting households and retailers through a rise in the cost of importing raw material. The Bank of Japan's ultra-loose monetary policy, and signals from Governor Kazuo Ueda that he will be in no rush to raise interest rates from current near-zero levels, are also perceived by markets as contributing factors to the yen's weakness. Sign up here. https://www.reuters.com/markets/currencies/japan-warns-against-one-sided-currency-moves-yen-slides-2024-10-24/
2024-10-24 00:59
Oct 23 (Reuters) - The World Bank and the Inter-American Development Bank (IDB) are providing Argentina with $8.8 billion in financing, the South American country's economy ministry announced on Wednesday, as the cash-strapped government ramps up support from key lenders. The announcement follows meetings in Washington this week between senior officials, including Economy Minister Luis Caputo, and international lenders as Argentina's government works to reverse a prolonged economic slump. The World Bank's financing over the next few months will cover $2 billion, which will be directed toward social spending including education as well as transportation and electricity costs, aimed at the poor, according to the statement. Funding from the lender for private sector initiatives over the next couple years will finance $3 billion for projects including mining, renewable energy, health, as well as steel and aviation. IDB funding, meanwhile, includes more than $2.4 billion for the government that should help finance additional social spending, including education and energy services, also focused on the poor, the statement noted. Assistance from the IDB will also seek to boost the private sector over the next two years, adding another $1.4 billion. Sign up here. https://www.reuters.com/markets/world-bank-idb-grant-argentina-88-bln-financing-says-government-2024-10-24/
2024-10-24 00:51
MEXICO CITY, Oct 23 (Reuters) - Mexico's Becle (CUERVO.MX) , opens new tab, the world's largest tequila producer, more than quadrupled its net profit in the third quarter, it said on Wednesday, boosted by favorable foreign exchange-rate dynamics. Net profit reached 896.11 million pesos ($45.51 million), while revenues ticked up nearly 4% from a year earlier to total 10.95 billion pesos. The Mexican peso was 13% weaker versus the U.S. dollar at the end of September 2024 compared to a year earlier, when the peso's strength diluted foreign revenues for many Mexican firms including Becle. "Despite (...) challenges, our sales have improved thanks to premiumization efforts and favorable exchange-rate effects, which have boosted profitability and mitigated the industry slowdown in key markets," Becle executives said in a filing to Mexico's main stock exchange. Net sales in the U.S. and Canada - which make up 60% of Becle's sales - jumped nearly 11% year-over-year, though volumes slipped some 3%. The lower volume was on the ready-to-drink and non-alcoholic beverage categories. In Becle's home market of Mexico - which brings in around a quarter of sales - both sales and volumes sank some 15%. Becle has been shifting its products into premium price ranges, a strategy it says helped it hold and even increase its share in some markets last year despite slowing demand for spirits. The distiller makes the bulk of its income from tequilas but also produces a range of spirits such as Creyente mezcal, Stranahan's whiskey, Kraken rum and Boodles gin. ($1 = 19.6921 Mexican pesos at end-September) Sign up here. https://www.reuters.com/business/retail-consumer/tequila-maker-becle-quadruples-net-profit-third-quarter-2024-10-24/
2024-10-24 00:37
US, Israeli negotiators to discuss Gaza ceasefire deal in Doha Benchmarks erase gains after rising over $1/bbl earlier Market uncertainty ahead of fast-approaching US election Oil demand worries weigh NEW YORK, Oct 24 (Reuters) - Oil prices eased about 1% in volatile trade on Thursday on reports the U.S. and Israel will try to restart talks on a possible ceasefire in Gaza. Brent futures settled 58 cents, or 0.8%, lower at $74.38 a barrel, while U.S. West Texas Intermediate crude (WTI) slipped 58 cents, or 0.8%, to end at $70.19. Earlier in the session, both benchmarks traded up over $1 a barrel on concerns the ongoing conflict in the Middle East could result in oil supply disruptions and from uncertainty ahead of the U.S. presidential election on Nov. 5. "(The) energy complex continues to zig and zag as Middle East risk premium expands and contracts almost daily," analysts at energy advisory firm Ritterbusch and Associates said in a note. After Iran fired missiles at Israel on Oct. 1, Brent crude surged about 8% during the week ended Oct. 4 on worries Israel would attack Iran's oil infrastructure. It fell about 8% in the week ended Oct. 18 on reports Israel would not hit energy infrastructure, easing fears of supply disruptions. Iran is a member of the Organization of the Petroleum Exporting Countries and produced about 4 million barrels per day (bpd) of oil in 2023, U.S. Energy Information Administration data showed. Iran was on track to export around 1.5 million bpd in 2024, up from an estimated 1.4 million bpd in 2023, according to analysts and U.S. government reports. Iran backs several groups fighting Israel, including Hezbollah in Lebanon, Hamas in Gaza and the Houthis in Yemen. With the fast-approaching U.S. presidential election, which could alter U.S. Middle East and oil policy, President Joe Biden's administration continued to push for peace between Israel and Hezbollah and Hamas. "(Former President Donald) Trump is leading over (Vice President Kamala) Harris based on current data from betting markets and Trump has proposed making the U.S. a major oil supplier," said OANDA senior market analyst Kelvin Wong, adding that such a move could depress prices. While betting markets put Trump ahead, other polls show the result is too close to call. DEMAND WORRIES In Europe, Euro zone business activity stalled again this month, remaining in contractionary territory as demand from both home and abroad fell despite firms barely increasing their prices, a survey showed on Thursday. In the UK, optimism among British firms has sunk, according to two surveys published on Thursday, six days before finance minister Rachel Reeves tries to chart a way between raising taxes and boosting growth in the new government's first budget. In the U.S., new applications for U.S. unemployment aid unexpectedly fell last week, but the number of people collecting benefits in mid-October was the highest in nearly three years, indicating it was becoming harder for those losing jobs to land new positions. Sign up here. https://www.reuters.com/markets/commodities/oil-prices-edge-higher-track-3-weekly-gain-2024-10-24/
