2024-10-14 21:48
Oct 15 (Reuters) - A look at the day ahead in Asian markets. While Chinese shares did not quite know how to react to Beijing's weekend stimulus update, Wall Street extended its breakneck rally to give Tokyo something to key off when it reopens on Tuesday from a three-day weekend. While the Treasury market and U.S. government offices were closed on Monday for America's Columbus Day holiday, the S&P 500 and Dow roared to record high closes led by chip stocks and high hopes for the third-quarter earnings season that kicked off in earnest on Friday with beats by JP Morgan (JPM.N) , opens new tab and Wells Fargo (WFC.N) , opens new tab. On Tuesday, other big money-center banks including Citi (C.N) , opens new tab, Bank of America (BAC.N) , opens new tab and Goldman Sachs (GS.N) , opens new tab report quarterly results. Later this week, earnings from American Express, Netflix (NFLX.O) , opens new tab, United Airlines (UAL.O) , opens new tab and Procter & Gamble (PG.N) , opens new tab will show any resilience in consumer spending, which dominates U.S. economic activity, before the release of retail sales data on Oct. 17, the main indicator for U.S. investors this week. The dollar index hit its highest since mid August in holiday thinned trade, buoyed by the conviction that the Fed would choose its smaller rate cut option next month, given that the economy continues to grow and create jobs, without overheating. The dollar may have been the only safe-haven beneficiary of China's "Joint Sword 2024B" war games around Taiwan, which the Pentagon called "destabilizing" on Monday. Gold and crude ended down. The U.S. rate futures market has priced in an 87% chance the Fed will ease by 25 bps at the November meeting, and a 13% chance it will pause and keep the fed funds rate at the target range between 4.75% and 5%, where it has stood since last month's outsized 50-basis-points cut. The greenback also rose against the onshore yuan after investors found China's weekend announcements that it would increase debt to revive its economy fell short on detail. The yuan ended at its low for the day at 7.09 per dollar, also its lowest since Sept 19. It is down about 1% against the dollar since Sept. 24, when the People's Bank of China kicked off China's most aggressive stimulus measures since the pandemic. The dollar closed in on 150 yen , ending Monday up about half a percent as the Japanese currency continued to grind lower. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) , opens new tab was 0.02% lower late on Monday, with trading in Asia thinned by Japan's holiday and a weaker Hang Seng Index close offset by rallies in the CSI300 blue-chip index and Shanghai Composite Index. Numerous U.S. listed shares of Chinese firms fell on Monday, including ADRs from Alibaba , PDD Holdings (PDD.O) , opens new tab, NIO and Baidu . The S&P 500 (.SPX) , opens new tab ended up 0.77%, the Dow (.DJI) , opens new tab up 0.47% and the Nasdaq (.IXIC) , opens new tab 0.87%, with the (.SOX) , opens new tab Philadelphia Semiconductor Index up almost 2%. Shares of Nvidia (NVDA.O) , opens new tab closed at record highs, putting the heavyweight AI chipmaker on the brink of dethroning Apple (AAPL.O) , opens new tab as the world's most valuable company. All that leaves signals positive, although not uniformly so, for Tokyo's Nikkei (.N225) , opens new tab to keep the party going, top Friday's two-week high and extend the already 27% advance since it bottomed in early August. Here are key developments that could provide more direction to markets on Tuesday: - Japan industrial production (Aug) - South Korea unemployment (Sept) - Citi, Bank of America, Goldman Sachs report Q3 earnings Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-graphic-2024-10-14/
2024-10-14 21:21
Harris stresses message that Trump is a danger to democracy Harris' new plan for Black men includes forgivable small business loans Offers access to a legal recreational marijuana industry Boosts access to cryptocurrency industry Support among Black men a concern for Harris ERIE, Pennsylvania, Oct 14 (Reuters) - Democratic presidential candidate Kamala Harris on Monday slammed Donald Trump for his ominous comments about "the enemy within" the United States and threat to deploy the military domestically, in a renewed effort to paint her Republican opponent as a threat to democracy. In a rare move at her own campaign rally in the political swing state Pennsylvania, the U.S. vice president showed a clip of Trump, the former president, telling his supporters "those people are more dangerous - the enemy from within - than Russia." Harris, 59, has recently pressed Trump to release his health records, as she has, and knocked him for meandering tangents and focus on fictional characters such as Hannibal Lecter. "A second Trump term would be a huge risk for America, and dangerous. Donald Trump is increasingly unstable and unhinged," Harris told the Erie crowd after playing the clip. She went on to say that Trump poses a danger because he believes those who do not agree with him are the enemy. Trump in recent rally speeches has hinted about facing "an enemy from within," more dangerous than a foreign adversary. His campaign did not immediately return a request for comment. In an interview on Sunday on the Fox News program "Sunday Morning Futures," host Maria Bartiromo asked Trump if he was expecting "chaos" on Election Day, and he appeared to suggest the military could be deployed against citizens. "I think the bigger problem is the enemy from within," Trump said. "We have some very bad people. We have some sick people, radical left lunatics." He added: "It should be very easily handled by, if necessary, by National Guard, or if really necessary, by the military, because they can't let that happen." Trump would not be able to give orders to either National Guard or active-duty military units on Election Day on Nov. 5 because he is not president. Harris' trip to Pennsylvania on Monday is her 10th to the battleground state since becoming the Democratic candidate in July. The state's 19 electoral college votes will be pivotal to the election outcome. She kicked off her trip to Erie with a stop at a Black-owned coffee shop for a sit-down discussion with Black men. Her campaign is concerned about slipping support from Black voters. Harris unveiled new policy proposals aimed at Black men on Monday that include forgivable small business loans and access to a new legal recreational marijuana industry. The Harris campaign and Democrats - including former President Barack Obama - have expressed deep concern about whether Black men will turn out in numbers seen in past elections and whether they will support Harris or Trump. Over a quarter of young Black men say they would support Trump in the election race, according to a September poll by the NAACP, the nation's largest civil rights organization. President Joe Biden got about 80% of the Black male vote in 2020. The new slate of policy proposals is part of Harris' effort to make a direct pitch at Black men and make them a more central part of her campaign during the final stretch. Reuters was first to report the plan. The new policies include 1 million loans that are fully forgivable of up to $20,000 to entrepreneurs in underserved communities, and a promise to legalize recreational marijuana and help ensure Black entrepreneurs have access to the new industry. Other Harris proposals include boosting access to the cryptocurrency industry for Black Americans and launching a national health equity initiative focused on Black men that addresses diseases like sickle cell anemia, which disproportionately affects the community. If elected, Harris would be the second Black president and first Black woman, and first person of South Asian descent in the office. The policy rollout came a day before Harris is expected to be interviewed by Charlamagne tha God, a comedian and author whose nationally syndicated radio show is popular with Black millennials. Sign up here. https://www.reuters.com/world/us/harris-targets-black-men-with-new-economic-proposals-2024-10-14/
2024-10-14 21:07
Oct 14 (Reuters) - Citi Research on Monday raised its bull case scenario for oil prices for this quarter and the next one, citing heightened potential of the market to fear or realize supply losses during these months due to growing Middle East conflict. The bank upgraded its bull case for the fourth quarter of 2024 and first quarter of 2025 to $120 per barrel (bbl) from $80/bbl. However, "we maintain our baseline forecast for $74/bbl Brent in 4Q'24 and $65/bbl during 1Q'25, owing to weak underlying oil market fundamentals," Citi added. It also said it was holding its bear scenario, which includes OPEC+ raising production starting in December, and a reduction in oil supply risks at a 20% indicative probability for the fourth quarter of 2024 at $60/bbl and 1Q/25 at $55/bbl. Brent crude futures were trading around $77 per barrel on Monday, while U.S. West Texas Intermediate crude futures were at $74 per barrel. The bank said that after reviewing major geopolitical risk events since the 1950s, the main takeaway was that historical events that potentially or actually impact oil supply do not tend to persist for longer than a few quarters at most. Sign up here. https://www.reuters.com/business/energy/middle-east-supply-disruption-potential-could-send-oil-above-100bbl-citi-says-2024-10-14/
2024-10-14 21:02
Oct 14 (Reuters) - Italian energy group Edison (EDNn.MI) , opens new tab said on Monday that U.S. gas exporter Venture Global LNG told it not to expect contract cargoes from its Louisiana export facility until April 2025. Edison is among companies including Shell (SHEL.L) , opens new tab, BP (BP.L) , opens new tab and Repsol (REP.MC) , opens new tab that have filed contract arbitration cases against Venture Global for its failure to deliver contract cargoes, more than two years after it started exporting LNG from the Calcasieu Pass LNG plant. Edison in September 2017 signed a 20-year contract to receive LNG from the project but has not received any of the cargoes. Venture Global has sold cargoes from the project to others since March 2022, it said. The Arlington, Virginia, LNG exporter has said the plant has not achieved full commercial operations because of technical problems associated with a faulty power generation system. Edison last week was told by Venture Global that first cargoes under its contract would not be available until April 2025 at the earliest, Edison said in a press release on Monday. Venture was not immediately available for comment. The Louisiana facility has produced, exported and sold 355 cargoes to the higher-priced spot market and generated more than $20 billion in revenue, Edison said. Sign up here. https://www.reuters.com/business/energy/venture-global-will-not-begin-lng-deliveries-italys-edison-until-2025-2024-10-14/
2024-10-14 21:00
Oct 14 (Reuters) - Phillips 66 (PSX.N) , opens new tab will sell its 49% non-operated equity interest in Coop Mineraloel AG to its Swiss joint venture partner for $1.24 billion, the U.S. refiner said on Monday. The joint venture operates 324 retail sites and petrol stations across Switzerland. "This transaction marks significant progress in delivering on our commitment of over $3 billion in divestitures," Phillips 66 CEO Mark Lashier said in a statement. The company said it would receive $1.17 billion as sales price and $70 million as assumed dividend for the current year to be paid at or prior to closing. Phillips 66 had said last year it would monetize $3 billion in non-core assets in 2024 as part of a plan to boost returns by cutting costs and assets. The company last month sold its natural gas gathering and processing assets in East Texas to Voyager Midstream. Earlier this year, it agreed to sell 25% stake in the Rockies Pipeline, which would provide it $685 million in after-tax proceeds. The refiner said on Monday proceeds from the transaction, which is expected to close in the first quarter of 2025, "will support the strategic priorities of Phillips 66, including returns to shareholders." Sign up here. https://www.reuters.com/markets/deals/phillips-66-sell-49-stake-coop-mineraloel-124-bln-2024-10-14/
2024-10-14 20:53
RIO DE JANEIRO, Oct 14 (Reuters) - Brazil's Petrobras (PETR4.SA) , opens new tab is discussing a partnership with Vale (VALE3.SA) , opens new tab to help the mining company lower carbon emissions, the state-run oil firm's Chief Executive Magda Chambriard said on Monday. WHY IT'S IMPORTANT The two Brazilian companies are among the largest in Latin America by market value. Chambriard said the firms will "help each other" decarbonize, with a possible deal in which Petrobras would supply marine fuel and diesel with renewable content for Vale to run its railways, ships and trucks. KEY QUOTE "It's an effort by the two largest companies in Brazil towards decarbonization," Chambriard told journalists. BY THE NUMBERS Petrobras is already able to provide marine fuel with up to 24% of renewable content, and diesel with 5%, said Chambriard. ADDITIONAL CONTEXT Both Vale and Petrobras are looking for ways to reduce carbon emissions from their operations, with Vale resorting to batteries and renewable energy in its effort. Petrobras believes it could reach net zero carbon emissions by 2035, said Chambriard, but maintained that its formal commitment is still to do so by 2050. Sign up here. https://www.reuters.com/sustainability/climate-energy/brazils-petrobras-miner-vale-have-decarbonization-partnership-works-2024-10-14/
