2025-11-04 10:32

SAO PAULO, Nov 4 (Reuters) - Brazilian planemaker Embraer (EMBJ3.SA) , opens new tab on Tuesday posted a third-quarter adjusted net income of $54.4 million, down from $221 million a year earlier, citing a hit from extraordinary items such as deferred taxes and results from electric aircraft unit Eve. Embraer's third-quarter revenue hit $2 billion, up 18% year-on-year and an all-time high for the period, the company said in a securities filing. The company reiterated its full-year financial and delivery outlook. Sign up here. https://www.reuters.com/business/autos-transportation/embraers-quarterly-net-profit-slips-maintains-full-year-outlook-2025-11-04/

2025-11-04 09:39

LONDON, Nov 4 (Reuters) - Britain's pound touched its lowest point since April on Tuesday after finance minister Rachel Reeves reiterated her commitment to upholding her fiscal rules in her November budget, ahead of a Bank of England interest rate decision later this week. In a rare pre-budget speech, Reeves framed her second annual budget as one of "hard choices" to secure public spending while reducing Britain's debt, signalling possible broad tax rises to avoid a return to "austerity". Sign up here. The pound fell as much as 0.64% to $1.3056 , its lowest since April 11, from around $1.311 before Reeves' speech. In October, it posted its poorest monthly performance against the dollar since July. The euro , which rose to its highest in two and a half years against sterling last week, was up 0.3% at 87.96 pence. 'JUSTIFYING TOUGH DECISIONS' "She (Reeves) is justifying tough decisions to come in the budget. The fact that this is happening at all means that manifesto pledges will not be followed to the letter," said Kit Juckes, head of currency strategy at Societe Generale. "We're going to have higher taxes." Reeves set out the difficult economic backdrop she was wrestling with, pointing to high debt levels, low productivity and stubborn inflation. Analysts said the overall reaction in UK markets was limited since a rise in taxes in the November 26 budget has been anticipated. Britain's benchmark 10-year gilt yield fell as much as 5.9 basis points to a low of 4.379%, before retracing to 4.407%, showing a 3.2-bp drop on the day, which further undermined sterling. Yields fell almost 30 basis points in October, in their biggest monthly fall since late 2023. London's FTSE 100 stock index, meanwhile, remained lower on the day, in line with other European markets (.FTSE) , opens new tab. RATE CUT ON THURSDAY? James Rossiter, senior global strategist at TD Securities, said the timing of Reeves' speech - ahead of Thursday's Bank of England rate decision - should give rate-setters some clarity on the direction of government policy. "We think the BoE will cut rates on Thursday," he said. Money markets price in less than a 40% chance of a quarter-point move. Until late October, money markets showed traders expected no move at all from the BoE until at least the spring. Thanks to signs of a cooling in some inflationary pressures and rising expectations for Reeves to announce more belt-tightening in her budget, expectations for a cut in the months ahead have risen. https://www.reuters.com/world/uk/sterling-dips-after-reeves-makes-rare-pre-budget-speech-2025-11-04/

2025-11-04 09:35

LONDON, Nov 4 (Reuters) - British finance minister Rachel Reeves on Tuesday framed her upcoming second annual budget as one of "hard choices" to secure public spending while reducing Britain's debt, signalling possible broad tax rises to avoid a return to "austerity". Reeves, in a rare pre-budget speech, added that while progress had been made, "there is more to do." Sign up here. Britain's 10-year borrowing costs were last 3 basis points lower at 4.41%, helping send the pound down 0.5% on the dollar to $1.3074. London's FTSE-100 index was down 1% having extended its fall slightly from before Reeves started speaking. COMMENTS: JANE FOLEY, HEAD FX STRATEGIST, RABOBANK, LONDON: "There's one element of the communication that we've had today, but also in recent speeches, that, compared with last year's budget, (Reeves) does seem to be more aware of the potential inflationary impact that her measures could make." "She, today again but also in recent speeches, has indicated that she sees her responsibility as a joint responsibility with the Bank of England in bringing inflation down and that gives a strengthened indication that she isn't going to be announcing measures that are going to add to inflation." KIT JUCKES, HEAD OF CURRENCY STRATEGY, SOCIETE GENERALE, LONDON: "She (Reeves) is justifying tough decisions to come in the budget. The fact that this is happening at all means that manifesto pledges will be not be followed to the letter. We're going to have higher taxes. The only thing has not prevented Sterling falling is that we haven't had lower rates This is a budget that is intended to deliver lower interest rates, that is the whole plan here. If Reeves get that we will get lower rates and a weaker pound." HENRY COOK, SENIOR EUROPE ECONOMIST, MUFG, LONDON: "She's (Reeves) clearly laying the ground for tax rises, and setting out the context there." "I think from the market's perspective, she continues to make the right noises. She says the decisions will be focused on keeping inflation falling - the conditions for interest rate cuts - and says there's an iron clad commitment to the fiscal rules, but I think the devil will be in the detail. It is also notable she said the government will be committed to reforming the welfare state." JAMES ROSSITER, SENIOR GLOBAL STRATEGIST, TD SECURITIES, LONDON: "At the end of the day, she (Reeves) wants to get debt down and she doesn't want to cut spending, so there's only one option and that is to raise taxes. The OBR forecasts will evolve in the next few weeks, and, in fairness to her, she has not made final decisions, but she knows she doesn't have many options here. She would not reiterate the manifesto pledges at all, so that means she is keeping options open. This is also ahead of the BoE meeting so their view is out in the public. We think the BoE will cut rates on Thursday. This should be treated as a dovish speech but markets are expecting this and have largely taken it in their stride." DAVID MORRISON, SENIOR MARKET ANALYST, TRADE NATION, UK: "It's quite an unusual move for her to stand at 11 Downing St. and make an announcement a few weeks before the budget. It is a way of saying, look, this is the situation and this is what we've been dealing with. She's preparing the markets for breaking the manifesto pledge not to raise taxes. If all they're talking about is the tax side of the equation, as we've seen previously, they seem incapable of doing anything on the spending side, then I don't think that's going to get a very positive reaction. It's only right that they address the spending side of the ledger and if they don't, then I don't think the market reaction is going to be very positive." MICHAEL BROWN, SENIOR RESEARCH STRATEGIST, PEPPERSTONE, LONDON: "Everything about it is odd to be completely honest with you. The budget is not for three weeks. The fact that the chancellor is speaking three weeks beforehand is strange. I'm not entirely sure who the speech was aimed at. It doesn't seem like it would have done anything to soothe the concerns of market participants, certainly not with cable (GBP/USD) trading to new lows since mid-April, as we speak. It doesn't look like it was aimed at the voter either given what she was saying. The big takeaway is she has refused to reiterate those manifesto promises which essentially paves the way for an income tax hike, she was also talking about how she wants to build a greater degree of fiscal headroom which means that we're going to have even more tax hikes than you would have been expecting . So obviously sterling is repricing lower on the back of what is going to be another round of very stiff headwinds to economic growth. A strange one, when you look, Rachel Reeves is speaking you would expect some sort of reassurance...some sort of concrete measures, and there just weren't." https://www.reuters.com/world/uk/view-britains-finance-minister-vows-do-what-is-necessary-nov-budget-2025-11-04/

2025-11-04 08:22

SOFIA, Nov 4 (Reuters) - Bulgarian inflation may jump when the euro currency is adopted on January 1 as retailers round up prices, but the impact will fade quickly and the benefits will be far greater, ECB President Christine Lagarde said on Tuesday. Around half of Bulgaria's public oppose euro adoption, fearing that it will impinge on sovereignty and retailers will exploit the changeover to raise prices. Sign up here. "This concern is entirely legitimate," Lagarde told a conference in Sofia. "Currency changeovers can produce a temporary uptick in measured inflation, often when firms round up prices during conversion." At 4.1%, Bulgaria already had one of the highest rates of inflation in the European Union in September and the rate is now increasing, while euro zone inflation is broadly at the 2% target. If accession criteria were assessed now, Bulgaria might not meet them. The one-off inflation jump is normally between 0.2 and 0.4 percentage points and it was around 0.4 percentage points in 2023 in Croatia, the last country to join the currency bloc, Lagarde said. She argued that once accession takes place, uncertainty among citizens has naturally receded, making the benefits more obvious. "The greatest risk countries faced was not losing sovereignty or seeing an increase in prices," Lagarde said. "It was losing reform momentum once inside the euro area, and thus missing out on the full benefits of the single currency." https://www.reuters.com/business/bulgarian-inflation-may-jump-with-euro-adoption-lagarde-says-2025-11-04/

2025-11-04 08:02

ZURICH, Nov 4 (Reuters) - The Swiss National Bank is well positioned with its current interest rates, governing board member Petra Tschudin told Swiss broadcaster TeleZueri in an interview to be broadcast on Tuesday. "We always use monetary policy in such a way that we can fulfil our mandate of ensuring price stability," Tschudin said, referring to the central bank's target range for inflation of 0-2%. Sign up here. "And if you look at our inflation forecasts, you will see that inflation is between 0 and 2% over the medium term. And from that perspective, interest rates are where they should be," she told the CEO Talk programme. The comments could be seen as a hint the SNB will keep its policy rate at 0%, the lowest among major central banks, although Tschudin said the world was changing rapidly. Markets currently give a 93% probability the SNB will not change its policy at its next meeting on December 11. Tschudin noted that the low interest rates made it more difficult for pension funds to invest, but did not rule out negative interest rates in future. The central bank would only deploy negative rates "if necessary", she said, but with the current inflation SNB forecasts there was no need. "We are in a good position at the moment," Tschudin said. "We are in a situation where monetary policy and the exchange rate are such that the inflation forecast is where we want it to be." https://www.reuters.com/business/finance/swiss-national-bank-good-position-with-current-rates-board-member-says-2025-11-04/

2025-11-04 07:57

Aramco's third-quarter net profit down due to lower crude prices Aramco raises 2030 sales gas production capacity growth target Revenues, net profit rise from previous quarter on higher production Gearing up year-on-year as company taps debt market DUBAI, Nov 4 (Reuters) - Saudi Arabian oil company Aramco (2223.SE) , opens new tab, the world's top oil exporter, reported a 2.3% decline in its quarterly profit on Tuesday, citing a drop in crude and product prices, but performance improved from the previous quarter as oil production rose. Shares rose up to 1.1% to 25.88 riyals at around 5 GMT after the earnings were published Sign up here. The kingdom has been pumping more crude as OPEC+ unwinds voluntary production cuts after several years of cutting back to support the market. In October, crude oil futures fell for a third consecutive month, dropping more than 2% and hitting a five-month low on October 20, on fears of a supply glut and economic concerns about U.S. tariffs. , Aramco reported a net profit of 101.02 billion riyals ($26.94 billion) in the three-month period ended on September 30, down from 103.4 billion riyals last year. However, net profit was up around 19% compared to the second quarter as revenues rose due to higher volumes and prices for both crude oil and refined and chemical products. The company's total hydrocarbon production was 13.27 million barrels of oil equivalent per day (boepd) in the third quarter, compared to 12.8 million boepd the previous quarter. On Sunday, the Organization of the Petroleum Exporting Countries and their allies, known as OPEC+, agreed to a small oil output increase for December and a pause in increases in the first quarter of next year, in what some investors saw as a signal of oversupply in the market. Adjusted net profit, which does not include non-recurring items, at Aramco came in at $28 billion during the third quarter, beating a company-provided median analyst estimate of $26.5 billion. FOCUS ON GAS Aramco on Tuesday raised its 2030 sales gas production capacity growth target to about 80% above 2021 levels, up from its earlier goal of more than 60%. This increase is expected to bring total gas and associated liquids production to around 6 million boepd, the company said. "Part of that is from our unconventional gas expansion at Jafurah, which attracted significant interest from global investors," CEO Amin Nasser said in a statement. Aramco's Jafurah project is central to Saudi Arabia's ambitions to become a major global player in natural gas and last week the firm completed an $11 billion lease and leaseback investment agreement for the field gas processing facilities with a consortium of investors including BlackRock's GIP. The company confirmed a previously outlined $21.3 billion in total dividends for the third quarter, about $200 million of which is performance-linked dividends. The dividends, which will be about one-third lower this year, are a critical source of income for the Saudi Arabian government, which owns 81.5% of Aramco shares directly and another 16% through its sovereign wealth fund PIF. The kingdom has invested billions to diversify its economy away from oil. Still, oil generated 62% of the government's revenue last year, and the International Monetary Fund estimates the kingdom needs oil prices at more than $90 a barrel to balance its 2025 budget. Saudi issuers including Aramco accounted for 18.9% of the $250 billion in emerging-market dollar debt in the first half of the year, Fitch said in August, driven by strong investor demand. Aramco raised $5 billion from a bond in May and a further $3 billion from a sale of Islamic bonds in September. Total borrowing rose to $95.1 billion as of September 30 from $80.9 billion a year earlier, while gearing, a measure of indebtedness, stood at 6.3% from 1.9% at the end of September 2024. ($1 = 3.7504 riyals) https://www.reuters.com/world/middle-east/aramco-posts-23-fall-third-quarter-net-profit-2025-11-04/