2025-10-31 11:51
LONDON, Oct 31 (Reuters) - The pound headed for its worst performance against the dollar since July on Friday, while also wallowing at 2-1/2-year lows against the euro, reflecting growing investor nervousness about the outlook for UK government finances. Sterling , which has fallen 2.3% in October, set for its biggest monthly decline since July and the second-largest this year, was down another 0.11% on the day at $1.3136, near its lowest since April. Sign up here. British finance minister Rachel Reeves, who is dealing with political pressure this week over a rental dispute, is presenting her budget in late November. Reeves already has very limited headroom, based on her own fiscal rules, with which to manoevre, when it comes to keeping Britain's finances on track. Expectations are mounting that she may be forced to break election pledges and hike some taxes after warnings official forecasts could show the economy is in a worse state than once thought. UK gilts, which still carry a higher yield than the bonds of any other major economy, have rallied strongly this month, buoyed by investors betting on the Bank of England cutting interest rates sooner than previously thought, as metrics like inflation hold steady. Money markets show traders think there is around a 45% chance the BOE lowers borrowing costs by a quarter point when it meets next week, compared with next to no chance just a couple of weeks ago. According to IG strategist Chris Beauchamp, pricing is still cautious. "This suggests significant upside for the pound if the BoE disappoints dovish expectations, but also room for a sharp move lower if policymakers signal more aggressive easing ahead," he said. "Next week's decision is genuinely uncertain, making it one of the more consequential BoE meetings in recent memory," he said. Economists at Goldman Sachs changed their forecast for the BOE this week and now see a cut, compared with none previously. Part of their rationale is Reeves' crucial budget, which they think "will deliver a large, contractionary impulse to the economy." https://www.reuters.com/world/uk/pound-heads-worst-monthly-performance-since-july-2025-10-31/
2025-10-31 11:49
KYIV, Oct 31 (Reuters) - Ukraine has successfully hit 160 Russian oil and energy facilities so far this year, the head of the SBU security service said on Friday. Vasyl Maliuk told reporters that the strikes would continue and were aimed at reducing Russia's ability to finance its war in Ukraine. Sign up here. https://www.reuters.com/world/europe/ukraine-hits-160-russian-oil-energy-facilities-so-far-this-year-kyiv-says-2025-10-31/
2025-10-31 11:47
Oct 31 (Reuters) - LyondellBasell Industries (LYB.N) , opens new tab said on Friday it is on track to achieve $1.1 billion in cost savings by 2026, as improving demand and a tight lid on costs helped the chemicals maker beat quarterly profit estimates and signal a steady recovery. The company's shares rose nearly 4% in premarket trading as the better-than-expected results eased some concerns around demand and rising raw material costs, particularly in Europe. Sign up here. LyondellBasell said its cash improvement plan, launched earlier this year, remains on track to generate $600 million in incremental cash flow during 2025. The company's olefins and polyolefins Americas business saw improved profitability, driven by higher olefins margins and stronger polyethylene sales following plant turnarounds in Texas. Polyolefins demand is showing early signs of recovery, the company said, with U.S. polyethylene sales volumes rebounding after a two-year slump and European volumes up 3% year-to-date. LyondellBasell reported a net loss of $890 million, or $2.77 per share, for the third quarter, compared with a profit of $573 million a year earlier. The loss included $1.2 billion in non-cash asset write-downs and other one-time charges, primarily related to its European operations and portfolio restructuring efforts. Stringent regulatory environment in the region has prompted firms to reassess their operations and take cost-cutting measures. LyondellBasell said it has advanced its portfolio overhaul, securing approvals to sell four European assets and planning brief shutdowns at plants in Germany and Texas for maintenance and market alignment. The company said it expects seasonal weakness and higher feedstock costs to weigh on margins in the fourth quarter. However, global capacity reductions in China, Japan, South Korea and Europe are helping rebalance supply. Excluding items, adjusted earnings came in at $1.01 per share, topping analysts' expectations of 81 cents, according to data compiled by LSEG. https://www.reuters.com/business/lyondellbasell-profit-tops-forecasts-cost-cuts-demand-recovery-boost-outlook-2025-10-31/
2025-10-31 11:36
WASHINGTON, Oct 31 (Reuters) - A U.S. Republican senator is asking U.S. President Donald Trump's administration to help the Malaysian government prevent U.S. artificial intelligence chips from being smuggled through the country to China, according to a letter seen by Reuters. Reuters has previously reported that U.S. officials believe Malaysia is among a handful of countries where organized smuggling operations have worked to get U.S. chips into China that would otherwise be banned from export to China. Sign up here. Senator Tom Cotton, an Arkansas Republican, wrote a letter to U.S. Commerce Secretary Howard Lutnick saying Malaysian officials had begun cracking down on such activity and the Trump administration should aid Malaysian officials in the effort by helping the country develop screening programs to ensure chips are not being diverted to China. Cotton, who along with the Trump administration has supported the idea of requiring U.S. chips to contain technology that would verify their location to prevent smuggling, said chips with such technology should be given a green light for export to Malaysia. "As is often the case, U.S. companies are at the forefront of developing creative and innovative technical solutions, which will help add layers of assurance against illegal diversion," Cotton wrote in an October 30 letter. "To support the semiconductor industry in their efforts, it may be beneficial for U.S. and Malaysian officials to develop priority customs clearance procedures for shipments of advanced U.S. chips with anti-diversion mechanisms," Cotton said. Malaysia, China's largest trading partner in Southeast Asia, announced in July it was requiring permits for all exports, trans-shipments and transits of U.S.-made high-performance chips, such as those made by Nvidia (NVDA.O) , opens new tab. https://www.reuters.com/legal/government/us-lawmaker-asks-trump-administration-to-help-malaysia-crack-down-chip-smuggling-2025-10-31/
2025-10-31 11:34
Hess acquisition helps boost Chevron's quarterly profit Cash flow grows 20% year-on-year on rise in output 'High confidence' free cash flow will keep growing, CFO says Upstream earnings decline 28% due to lower oil prices Downstream profit jumps 91% HOUSTON, Oct 31 (Reuters) - Chevron (CVX.N) , opens new tab beat analyst estimates on Friday as record oil and gas production, boosted by its $55 billion acquisition of Hess, and stronger refining margins lifted the No. 2 U.S. oil producer's results for the third quarter. Adjusted earnings for the three-month period ended September 30 were $3.6 billion or $1.85 per share, which handily beat the consensus estimate from analysts of $1.68 per share as compiled by LSEG. Sign up here. Cash flow from operations excluding working capital grew nearly 20% year-over-year to $9.9 billion, driven in part by production growth in areas including the Permian Basin and the U.S. Gulf of Mexico, Chevron Chief Financial Officer Eimear Bonner said in an interview. The company said in an investor presentation that it expects strong cash generation to continue, even with lower oil prices, because of increased capital efficiency and growth in high-margin assets. Chevron completed the acquisition of Hess in July, which gave the company access to a prolific oilfield in Guyana operated by larger rival Exxon Mobil (XOM.N) , opens new tab. The deal puts Chevron in a better position to weather oil price volatility with a source of profitable production, investors have said. STRONG RESULTS LEADING UP TO INVESTOR DAY Biraj Borkhataria, an analyst with RBC Capital Markets, said in a research note that Chevron's earnings report was strong, with every business and region beating market expectations. "We expect the market to take this positively, as it highlights continued momentum in its base business, as well as growth coming through from the newly acquired barrels, all of which are contributing to cash generation," he said. Chevron will host an investor day on Nov. 12 to provide updated financial guidance to shareholders following the Hess deal. The new combined company produced 4.1 million barrels of oil equivalent per day (boepd) in the third quarter, a record high and up from Chevron's standalone production of 3.4 million boepd in the same quarter last year. The results were also buoyed by lower costs, as Chevron is on pace to reach $2 billion to $3 billion in cost reductions next year, Bonner said. "Those are the catalysts that are coming together to give us this high confidence in free cash flow growth with lower execution risks, given that all these major milestones are behind us," she said. DOWNSTREAM EARNINGS JUMP WITH HIGHER REFINING MARGINS Upstream earnings totaled $3.3 billion, a 28% decline from the same period last year due to lower oil prices. Chevron's profit from the downstream business jumped 91% over the same time frame to $1.1 billion, driven by higher refining margins and lower operating expenses in the U.S. Chevron paid $3.4 billion in dividends and bought back $2.6 billion worth of shares during the quarter. The company said capital expenditure, which totaled $4.4 billion in the third quarter, rose from the same period last year because of spending on legacy Hess assets. Benchmark Brent crude prices averaged $68.17 over the third quarter, down about 13% from the same period last year and up 2% from the second quarter. The OPEC+ group of oil producers increased its output throughout the year, raising fears about oversupply and hampering crude prices. Average U.S. natural gas prices during the quarter rose about 38% compared with the year-ago quarter. https://www.reuters.com/business/energy/chevron-tops-q3-earnings-estimates-with-record-production-after-hess-deal-2025-10-31/
2025-10-31 11:28
GYEONGJU, South Korea/BEIJING, Oct 31 (Reuters) - China's President Xi Jinping met with Canada's Prime Minister Mark Carney on Friday, with the leaders vowing to advance bilateral relations and Carney accepting Xi’s invitation to visit China. They held a summit on the sidelines of the Asia-Pacific Economic Cooperation (APEC) forum in Gyeongju, South Korea, part of Carney's tour of Asia in an effort to deepen trade and security ties in the region, at a time when Canada is struggling to lessen its dependence on the U.S. and seek new markets. Sign up here. Canada remains embroiled in a bitter trade dispute with the United States, its biggest trading partner, followed by China. Carney has previously stressed the need to restart broad engagement with China after years of poor relations. "Prime Minister Carney accepted President Xi's invitation to visit China at a mutually convenient time," Carney's office said in a statement. Carney and Xi discussed solutions on trade issues including agriculture and agri-food products, such as canola, as well as seafood and electric vehicles, Carney's office said. The leaders also discussed a framework to deepen cooperation across a range of areas – from energy, agriculture, manufacturing, climate change, and international finance, according to Carney's office. XI SAYS CHINA IS WILLING TO WORK WITH CANADA Xi told Carney that China values Canada's stated readiness to improve bilateral relations, according to state broadcaster CCTV, adding that China was willing to work with Canada to put ties back on track. Both sides agreed to advance the resolution of specific economic and trade issues, and promote the development of the China–Canada strategic partnership, CCTV said. Earlier on Friday, Carney told a business event at the APEC gatherings the world of rules-based liberalised trade and investment had passed, adding that Canada aimed to double its non-U.S. exports over the course of the next decade. https://www.reuters.com/world/china/chinas-xi-canadas-carney-vow-advance-relations-2025-10-31/
