2024-10-09 23:05

Some 36% of firms to fall short of own forecasts for April-Sept Around 70% of firms see dollar/yen in 140-150 range in March Japan firms unruffled by U.S. concerns over U.S. Steel deal TOKYO, Oct 10 (Reuters) - More than a third of Japanese companies are likely to miss their earnings projections for the first half of the business year that commenced in April due to slow sales and increased costs, a Reuters survey showed on Thursday. The survey, conducted by Nikkei Research from Sept. 25 to Oct. 4, found that 36% of the polled companies expected they would not meet their original six-month estimates to September, while 18% anticipated exceeding their initial predictions. Some 45% said they were on track to hit their targets. The survey reached 506 companies, with 241 responding. Most Japanese firms closed their books on Sept. 30 for the financial results of the first six months of their business year. Earnings announcements for April to September are expected to get into full swing toward the end of this month. In the transportation equipment sector, primarily consisting of car-related companies, 50% estimated their half-year earnings would underperform forecasts, while 14% said they expected to exceed their own estimates. In July, Nissan Motor (7201.T) , opens new tab cut its annual operating profit forecast by 17% and lowered its retail sales forecast by some 50,000 units to 3.65 million vehicles, citing weaker-than-expected sales in the United States and China. Bucking the trend was the transportation sector, in which 40% of respondents saw their half-year earnings beating their own estimates, versus 35% of the firms that would likely miss their initial forecasts. Nippon Yusen (9101.T) , opens new tab and other shippers in July raised their annual outlook after armed conflicts in the Middle East prompted shipping firms to reroute vessels away from the Red Sea and use the roundabout Cape of Good Hope route, tightening container ship supply and driving freight rates higher. For the second half of the current business year, which started on Oct. 1, 58% of respondents anticipated meeting their initial earnings forecasts, while 34% predicted they would fall short of their original projections. The survey also found that 70% of respondents expected the Japanese yen to trade between 140 and 150 yen per dollar by the end of the current business year on March 31, with 21% predicting a range of 130-140 yen. On Oct. 2, while the survey was being conducted, Japanese Prime Minister Shigeru Ishiba surprised markets by saying the economy was not ready for further rate hikes, sending the yen to a six-week low of 147.25 yen to the dollar the next day. Asked what should be done in response to excessive foreign exchange fluctuations, 45% suggested implementing monetary easing or tightening while 33% advocated for government market intervention. "Besides a difference in interest rates among countries, weakness in the Japanese economy is causing weakness in the yen. We need policy steps that strengthen the Japanese economy," a manager at a chemical company wrote in the survey. Regarding Nippon Steel's (5401.T) , opens new tab $14.9 billion bid for U.S. Steel (X.N) , opens new tab, 46% of surveyed firms said the Biden administration's concern about potential national security risks had not altered their stance on U.S. investments. The remaining 54% said they were not engaged in investments in the United States, with none stating that U.S. security concerns over the proposed deal had affected their investment strategies. As for measures to cope with a growing number of cross-border acquisitions targeting Japanese companies, 44% were striving to boost corporate value, while 21% were not taking any specific steps and 32% did not see themselves as M&A targets, the survey found. Sign up here. https://www.reuters.com/markets/asia/third-japan-firms-likely-miss-h1-forecasts-reuters-poll-shows-2024-10-09/

2024-10-09 22:49

N'DJAMENA, Oct 9 (Reuters) - The Logone river in Chad's capital has risen to its highest level in 30-40 years, the authorities said on Wednesday, threatening further turmoil to a country that has been battling devastating nationwide floods for weeks. West and Central Africa's annual monsoon has swept parts of the region with above-average downpours this rainy season, triggering widespread floods. Chad is the worst-hit with 1.9 million people affected across much of the country as of Oct. 5, according to the U.N. humanitarian agency OCHA. By Wednesday morning, the Logone river had swelled even higher than forecast, hitting 8.18 meters. "This is a record not seen for at least 30 to 40 years," said the head of the National Meteorology Agency, Sakine Youssouf. Prime Minister Allah Maye Halina chaired a meeting of the national flood management committee on Wednesday to agree an action plan to respond to the floods, which he said had hit eight of the capital N'Djamena's 10 districts and 17 out of 23 of Chad's provinces. Sign up here. https://www.reuters.com/world/africa/river-flood-hit-chads-capital-surges-record-level-2024-10-09/

2024-10-09 22:31

ZooTampa animals to stay despite evacuation zone Animals housed in hurricane-hardened buildings or habitats Zoo prepared with extra supplies and staff for storm Oct 9 (Reuters) - As millions of people were under evacuation orders along Florida's Gulf Coast, the African elephants, Caribbean flamingos, pigmy hippos and about 1,000 other animals are riding out the monstrous Hurricane Milton at Tampa's zoo. For many of the animals, the storm will mean they have to give up the creature comforts of their everyday accommodations but they will not have to leave ZooTampa's 70-acre (28-hectare) property, even though it is in a mandatory evacuation zone, said Tiffany Burns, senior director of its animal programs. Some critters will have to share shuttered barns or wait out the rough weather in crates tucked throughout a dozen hurricane-hardened buildings at the zoo. A few will stay in their habitats. The alligators will mostly just snooze at the bottom of their ponds, unfazed by Milton's fury. "Nothing bothers them," Burns said, even as Hurricane Milton is described by forecasters as a catastrophic and potentially deadly storm. She said there was no need to put animals in trailers and haul them to other zoos or sanctuaries. "We're in Florida," Burns said. "We know hurricanes. It's just a matter of watching what degree we're dealing with and responding to that." The zoo sustained no damage when Hurricane Helene bumped along Florida's Gulf Coast about two weeks ago, she said. But Burns said to her knowledge the zoo has never had a direct hit since it was started in the 1930s. Forecasters say Milton could cruise straight up Tampa Bay, just a few miles (km) from the zoo at Lowry Park, just north of downtown Tampa. Zookeepers finished corralling all the animals on Tuesday, she said. The Caribbean flamingos needed extra care, being herded into a canvas chute to guide them into a trailer and then carried in groups to a barn. Elephants and giraffes were given extra hay and water in case their barns get blocked off by debris. The dozen zoo keepers riding out the storm with their furry and feathered charges include a veterinarian and maintenance workers. The zoo is supplied with generators and fuel, along with extra food and supplies for all the critters, in case the zoo is cut off. Each species reacts differently to big storms, Burns said. Its flock of macaws - a type of long-tailed parrots - can get agitated and need extra branches to chew and shred, she said. They're also put in a secure room where they are free to fly around and perch. Some of the orangutans will hide under blankets, while some might play as usual, she said. Baby animals will feel safe next to their mothers. The owls and armadillos love the crates during storms, giving them a secure feeling of hiding in a cave. "Our animals are absolutely resilient," Burns said. "Over the years they continue to amaze us. And our teams are great about identifying animals that need extra care." "We really try to minimize their stress," she said. Sign up here. https://www.reuters.com/business/environment/tampa-zoo-animals-hunkered-down-milton-approaches-2024-10-09/

2024-10-09 22:25

LONDON, Oct 9 (Reuters) - The Lloyd's of London (SOLYD.UL) market is undermining climate action and should impose binding rules to prevent insurers supporting fossil fuel expansion, NGO Reclaim Finance said on Wednesday. Some European insurers, including Generali (GASI.MI) , opens new tab and Zurich (ZURN.S) , opens new tab, have imposed restrictions on underwriting for fossil fuel projects in response to pressure from investors and campaigners. But Reclaim Finance said Lloyd's of London was a laggard in that it left decisions on whether to underwrite activities in heavy-emitting sectors to its syndicate members. Only five of Lloyd's 51 members, or managing agents, have policies restricting cover for new oil and gas fields, Reclaim Finance said. "If the Lloyd's market wants to be taken seriously as a leading player in the transition, its managing agents need policies now," Ariel Le Bourdonnec, insurance campaigner at Reclaim Finance, said. A spokesperson for Lloyd's pointed to the group's transition roadmap , opens new tab, a three-year plan for supporting Lloyd's customers as they shift to lower carbon models and to help Lloyd's managing agents develop their sustainability strategies. "Lloyd's will continue to follow government policy and regulatory requirements globally, while remaining committed to support an urgent and orderly just transition and remain agile in response to external shocks," the emailed statement said. Lloyd's did not comment further on Reclaim Finance's report. Lloyd's CEO John Neal told Reuters in an interview last week, before the NGO report was published, that Lloyd's did not plan to ask its members to tighten their oil and gas underwriting policies but would monitor managing agents' transition plans. Neal said Lloyd's remains committed to its net zero goal and considered supporting two parallel energy systems was essential to a fair transition. The Paris-based International Energy Agency has said there is no room for more oil and gas exploration if the goals of the Paris Agreement on cliamte change to keep global warming below 2 degrees Celsius (3.6 F) above pre-industrial levels are to be met. Sign up here. https://www.reuters.com/world/uk/lloyds-london-must-stop-supporting-fossil-fuel-expansion-says-ngo-2024-10-09/

2024-10-09 21:58

Florida's financial community committed to Florida, defying hurricanes Fund managers weigh lower taxes against insurance costs and rebuilding Concerns rise over hiring and insurance costs in hurricane-prone Florida Oct 9 (Reuters) - Florida's sun and low taxes enticed many hedge funds and other financial professionals to move south. Now another massive hurricane is putting that love affair to the test, but many big-name managers are committed to remaining in "Wall Street South" for the foreseeable future. Hurricane Milton made landfall on Florida's west coast on Wednesday as a Category 3 hurricane. By early Thursday, it had dropped to a Category 1, with heavy rains and damaging storm surges, as it reached the state's Atlantic Coast. The state has lured investors for years but its attractiveness only increased during the pandemic. Billionaire Carl Icahn uprooted his firm from New York to an office near Miami in 2020. Paul Singer's Elliott Investment Management followed later that year with an announcement that it was opening a West Palm Beach office. And Ken Griffin's Citadel said in 2022 that it was moving to Miami from Chicago. "We took the plunge with our eyes wide open," said Jack Ablin, chief investment officer at $52 billion Chicago-based Cresset Asset Management, about his move to Palm Beach on Florida's east coast in 2015, ahead of the hurricane making landfall. His principal residence will stay in Palm Beach even though he planned to ride out this storm from his other home in the Blue Ridge Mountains of South Carolina. For many other fund managers, the tradeoff between lower taxes and a favorable business climate versus the specter of insurance payments and the cost of rebuilding potentially annihilated real estate, still works in favor of Florida, according to people familiar with their thinking. The big hedge funds that moved to Florida remain committed to maintaining their operations there, those people said on Wednesday. Similarly, other executives who moved their personal residences to the South during the pandemic while continuing to telecommute for firms based in the Northeast have every intention of staying put, according to two sources familiar with their thinking. Other Wall Street financial institutions, including Goldman Sachs (GS.N) , opens new tab and JPMorgan Chase (JPM.N) , opens new tab, have built up staff in Florida both to serve customers who moved and to accommodate employees eager to work from the South. CONTINGENCY PLANNING Many of the firms that moved - including Citadel, Elliott and Icahn - are based on or near Florida's east coast where easy flights to New York and other locations were a draw, as was Miami's bustling nightlife and vibrant arts scene. That has put them some 300 miles (483 km) east of where Milton made landfall and wreak the most serious damage after Hurricane Helene swept through late last month. Still, they are working on contingency plans. "If the need to evacuate were to arise in Miami, we have robust contingency plans for our employees, their loved ones and our businesses,” said a Citadel spokesman. But the firm's commitment to Florida, where founder Griffin was born, is clear. The company plans to build a 54-story tower as its new headquarters in Brickell, the buzzing Miami neighborhood that has become the heart of "Wall Street South." A handful of financial industry firms, however, are based in the immediate path of Milton. One founder of an $8 billion fund on Florida's west coast flew in to the state to keep an eye on both his firm and his home, planned to ride out the storm on a high floor of his office building, people familiar with his thinking said. Another firm in the path was Raymond James Financial , founded and still based in St. Petersburg. The 62-year-old brokerage and investment advisory firm evacuated staff from its head office on Tuesday. The firm is maintaining service and support at back-up facilities and a spokesman declined to provide additional comment to its communications on social media. Blue Ocean Technologies ATS, a Florida-based financial technology company operating an overnight trading system for U.S. securities, has its executive offices just north of Miami in West Palm Beach, and had a backup plan. "I've been living here for 10 years, and the hurricanes have missed me for 10 years," said Brian Hyndman, president and CEO of Blue Ocean. The firm's trading system, its trade-matching engine, is based in New Jersey. "We can work remotely from home, and we've got backup and support on both the east and west coasts of the United States." LONGER-TERM IMPACT? Two sources familiar with executive recruiting in Florida told Reuters they are concerned that experienced staff may become more reluctant to shoulder the growing expense and risk of living in a hurricane zone, and that hiring may become more costly or difficult. Average homeowner premiums in Florida rose 57% between 2019 and 2023 according to data from Benjamin Keys of the University of Pennsylvania and Philip Mulder of the University of Wisconsin, a steeper rise than anywhere else in the nation. Average insurance costs were $4,060 last year, according to Keys. Mel Montagne, president of FIRM, a nonprofit that lobbies for fairer insurance rates for Floridians, and who also sells commercial insurance, said clients have been getting nervous and wracked with buyer's remorse. "They are looking around and saying, 'what the hell is this?'" said Montagne, whose clients include finance industry executives who migrated to Florida during COVID. "They are looking to sell to get the hell out of Dodge." Sign up here. https://www.reuters.com/markets/us/florida-based-fund-managers-brace-hurricane-milton-remain-committed-state-2024-10-09/

2024-10-09 21:46

Oct 10 (Reuters) - A look at the day ahead in Asian markets. Attention in Asia on Thursday is likely to center on Chinese stocks, and whether the previous day's steep selloff extends further, and the U.S. dollar, which is on its longest winning streak in more than two years. The economic calendar is light, with only wholesale inflation and bank lending figures from Japan, and Philippines trade data, on deck. Currency and rates markets could get more impetus from Bank of Japan deputy governor Ryozo Himino and Reserve Bank of Australia assistant governor Sarah Hunter, who are scheduled to speak at separate events in Japan and Australia, respectively. The foreign exchange market, and the U.S. dollar in particular, is increasingly playing on the minds of investors across the continent. The New Zealand dollar fell 1.3% on Wednesday after the country's central bank delivered a 50-basis point cut in interest rates and indicated it will ease policy further in the coming months. The kiwi has weakened 5% this month, making it the worst-performing major currency in the world this month. The greenback rose against a basket of major currencies on Wednesday for an eighth day, its best run since March-April, 2022, as the ongoing resilience of the U.S. economy draws flows into U.S. assets and forces investors to rethink their dovish outlook for U.S. interest rates. Demand for U.S. assets from Asia is also strong. Thursday may be a good test for Chinese markets, following Wednesday's reality check. After surging as much as 40% in just six trading days, benchmark equity indices in China slumped 7% on Wednesday for their biggest one-day losses since February 2020. Will the pullback provide a more attractive entry point for investors who missed that initial whoosh? If so, the rally may have more to run, but a second day of losses may suggest investors need more from Beijing. China's finance ministry will flesh out its plans to boost the economy at a news conference , opens new tab on Saturday, a sign that Beijing may be ready to roll out more forceful policies to revive growth. The People's Bank of China, meanwhile, has steered the yuan away from the 7.00 per dollar level, at least for now. Tuesday's fixing of 7.0709/$ was 0.9% higher than the previous fix, marking the biggest one-day rise since May 2022. Wednesday's fix was a bit lower but still comfortably above pre-Golden Week holiday levels. In Japan, inflationary pressures are expected to have eased in September, with annual wholesale price inflation falling to 2.3% from 2.5% in August. That would be the lowest since April. The monthly rate of deflation is expected to accelerate to -0.3% from -0.2%, which would be the fastest rate of month-on-month decline since May last year. Here are key developments that could provide more direction to markets on Thursday: - Japan wholesale inflation (September) - BOJ deputy governor Ryozo Himino speaks - RBA assistant governor Sarah Hunter speaks Sign up here. https://www.reuters.com/markets/global-markets-view-asia-graphic-2024-10-09/