2024-05-03 00:30

FY profit falls 32% from last year, in line with consensus Final dividend A$3.85 apiece, below last year's A$4.50 AUM at FY-end A$938.3 bln, up 7% Shares fall about 2% in early trade May 3 (Reuters) - Australia's top investment bank Macquarie (MQG.AX) New Tab, opens new tab said its annual profit slumped by a third, the sharpest in 15 years, as a stabilisation in energy markets hammered its commodities trading division and it made less money selling green energy assets. The Sydney-listed financial giant said on Friday profits in the year to March were impacted by a normalisation in commodity prices from a year earlier, less money made from selling green energy assets, and increased investment in green energy portfolios. The firm's commodities and global markets (CGM) business - its top profit-generating arm that offers financing and lending services to clients dealing in commodity and financial markets - recorded an annual profit of A$3.21 billion, 47% lower than last year. Profit contribution of its asset management business also nearly halved to A$1.21 billion. As a result, the global infrastructure investor's profit attributable came in at A$3.52 billion ($2.31 billion), sharply below last year's A$5.18 billion New Tab, opens new tab. This was the company's steepest decline in annual profit since 2009. However, it was largely in line with a Visible Alpha consensus of A$3.51 billion, according to UBS. "Net net, headlines show an inline result albeit quality looks soft," analysts at Jarden wrote in a client note. Junvum Kim, a senior sales trader at Saxo Asia Pacific, said, "macroeconomic instability persists as a major hurdle in reigniting growth." Shares of Macquarie fell around 2% in opening trades before recovering slightly to trade 1.5% lower as of 0015 GMT. Macquarie continues to maintain a cautious stance, the financial conglomerate said, with inflation, interest rates, "significant volatility events", and impact of geopolitical events affecting its short-term outlook. However, CEO Shemara Wikramanayake said the group remained "well-positioned to deliver superior performance in the medium term". Macquarie's assets under management grew 7%, to A$938.3 billion at the end of the fiscal year, helped by favourable market and foreign exchange movements. The company declared a final dividend of A$3.85 per share, down from A$4.50 per share last year. ($1 = 1.5228 Australian dollars) Sign up here. https://www.reuters.com/business/finance/australias-macquarie-posts-32-fall-full-year-profit-2024-05-02/

2024-05-03 00:26

NEW YORK, May 3 (Reuters) - The dollar fell to a three-week low against the yen on Friday after data showed U.S. jobs growth slowed more than expected in April and annual wage gains cooled, boosting bets that the Federal Reserve will cut rates twice this year. Employers added 175,000 jobs last month, below economists' expectations for a 243,000 increase. Wages increased 3.9% in the 12 months through April, below expectations for a 4.0% gain after rising 4.1% in March. The unemployment rate rose to 3.9% from 3.8%, remaining below 4% for the 27th straight month. "The data's soft across the board from the Fed's perspective," said Jason Pride, chief of investment strategy and research at Glenmede in Philadelphia. Fed funds futures traders raised bets that the Fed would cut rates twice this year, with 47 basis points of easing priced in, up from 42 basis points before the data. "The market at this point is so hoping that the Fed can cut rates this year and did not want one of the hot numbers coming in. Today's report certainly offers them a cooler read of the labor landscape," said Quincy Krosby, chief global strategist at LPL Financial in Charlotte. Still, the report itself is unlikely to sway Fed policy unless the trend continues. "An unemployment rate of 3.9% is not something disastrous. This indicates an economy that is not declining dramatically, but it definitely indicates a looser labor market," said Pride. "It gives the Fed some hope, but it does not establish the trend for them." The Fed said after its two-day meeting on Wednesday that sticky inflation meant that it would take longer to cut rates. Inflation should continue to decline even as the U.S. central bank holds its benchmark interest rate at current levels, Fed Governor Michelle Bowman said on Friday while reiterating her willingness to raise the policy rate if progress peters out or reverses. The jobs report showed "solid" growth that slowed to a point that could make Fed officials more confident the economy is not overheating, Chicago Fed President Austan Goolsbee said on Friday. Other data on Friday showed the U.S. services sector contracted in March, while a measure of prices paid by businesses for inputs jumped, a worrisome sign for the inflation outlook. The dollar index was last down 0.27% at 105.03 after reaching 104.52, the lowest since April 10. The euro gained 0.39% to $1.0766. The greenback weakened 0.48% to 152.9 Japanese yen , reaching as low as 151.86, the weakest since April 10. The yen surged in light trading late on Wednesday and on Monday, which traders and analysts attributed to intervention by Japanese authorities. Japanese Finance Minister Shunichi Suzuki said on Friday that authorities may need to smooth any excessive yen moves that hurt households and companies. The yen is on track for its best weekly percentage gain against the greenback since November 2022, after Japanese authorities also intervened in October 2022 to shore up the currency. The yen reached a 34-year low of 160.245 on Monday as it suffers from a wide interest rate differential with the dollar. In cryptocurrencies, bitcoin gained 5.30% to $61,828. Sign up here. https://www.reuters.com/markets/currencies/yen-poised-best-week-over-year-dollar-waits-us-jobs-data-2024-05-03/

2024-05-03 00:07

Reuters poll graphic on Reserve Bank of Australia cash rate forecast BENGALURU, May 3 (Reuters) - Australia's central bank will hold its key policy rate at 4.35% for a fourth straight meeting on Tuesday and at least until end-September, according to a Reuters poll of economists who forecast just one interest rate cut this year. That change in expectations from two 25 basis point cuts in an April survey follows news inflation fell less than expected last quarter and the labour market remains tight. Although inflation slowed to 3.6% from 4.1% previously, it was not expected to fall below the Reserve Bank of Australia's 2-3% target range until 2025, suggesting the central bank will have to hold rates higher for longer. "Services inflation is still a serious problem that has to be dealt with. And the most painless remedy for a central banker is higher for longer cash rates," said Craig Vardy, head of fixed income at BlackRock Australasia. "They were late to start hiking, have not hiked as high as other major central banks, so expecting them to start cutting prematurely was odd from our point of view. If they were to cut, and then have to reverse course soon after, it would have destroyed their credibility." The RBA in recent months has sought to manage rate cut expectations, maintaining a "not ruling anything in or out" stance. That has led financial markets to factor in an extended pause, an even more hawkish stance than economists in the poll. All but one of 37 economists in the April 30-May 2 poll expected the RBA to hold its official cash rate (AUCBIR=ECI) New Tab, opens new tab at 4.35% at the end of its two-day policy meeting on May 7. One expected a 25 basis points hike. "We expect they (RBA) will remain on hold, but they will probably maintain and possibly amp up their rhetoric about the risk of a hike. I don't think the (inflation) surprise we saw in March was enough to tip the balance to them hiking, but you cannot rule it out completely," said Luci Ellis, chief economist at Westpac. All major local banks - ANZ, CBA, NAB, and Westpac - predicted no rate change until at least end-September and all four saw just one 25 basis point cut in November. Median forecasts showed rates at 4.10% by end-year, 25 basis points higher than the April poll. The RBNZ was predicted to cut rates by 50 basis points this year, a separate Reuters poll showed. Even with the U.S. Federal Reserve expected to hold rates higher for longer, the Australian dollar and the New Zealand dollar were forecast to gain over 2% against the greenback in the next six months, another Reuters poll found. The Australian and New Zealand dollars were forecast to trade around $0.67 and $0.61 by end-October. Analysts forecast the Aussie and kiwi dollars will recover all their year-to-date losses, 4% and 6% respectively, 12 months from now, a significant change from last month's poll. "In the near term we'll see both Aussie and kiwi remain under a little bit of pressure as we see indications of higher for longer from the U.S. Federal Reserve. Once we get through the next two or three months, we expect both the Aussie and kiwi will start to rally," said Ben Picton, senior strategist at Rabobank. Sign up here. https://www.reuters.com/markets/rates-bonds/rba-hold-rates-may-only-cut-once-by-end-year-2024-05-03/

2024-05-02 23:59

Qualcomm's upbeat Q3 forecast boosts chips, Nasdaq April jobs report comes into focus Indexes up: Dow 0.85%, S&P 0.91%, Nasdaq 1.51% NEW YORK May 2 (Reuters) - U.S. stocks rallied on Thursday as investors weighed the Federal Reserve's more dovish-than-expected interest rate guidance on Wednesday against a plethora of mixed earnings and economic data. All three indexes ended in positive territory. The tech-heavy Nasdaq led the way, advancing 1.5% with healthy boost from chip stocks after Qualcomm (QCOM.O) New Tab, opens new tab reported quarterly sales and profit above analysts' expectations. Markets continued to parse Fed Chair Jerome Powell's assurances on Wednesday that the central bank's next policy move will be to lower its key policy rate, after it left rates unchanged at the end of its monthly meeting. However, he noted that recent strong inflation readings have suggested that first of these rate cuts could be a long time in coming. "The takeaway from yesterday is that the Fed's bias is still a downward, hold steady or cut rates," said Paul Nolte, senior wealth advisor and market strategist at Murphy & Silvest in Elmhurst, Illinois. "They're not willing to raise rates from here. They'll keep rates steady, and any sign of economic weakness or lower inflation, they are going to be ready to jump on it and cut." Data released on Thursday included muted jobless claims, a drop in planned layoffs, a surge in quarterly labor costs and a sharp deceleration in productivity, all of which throws focus on Friday's closely watched April employment report. "The Fed has been consistent in saying they're going to be data dependent," said Joseph Sroka, chief investment officer at NovaPoint in Atlanta. "We went into this year thinking there could be more cuts, earlier. "The data hasn't supported that." The Organization for Economic Cooperation and Development (OECD) upgraded its global growth outlook, thanks in part to the U.S. economy's resilience. Of the 373 companies in the S&P 500 that have reported earnings through Thursday morning, 77% have posted better-than-expected results, LSEG data showed. After the market closed, Apple (AAPL.O) New Tab, opens new tab reported a smaller-than-expected decline in quarterly revenue and its shares initially rose. "The common theme (this quarter) is those companies that are beating expectations aren't really being rewarded as much as they have in prior quarters," Nolte added. "And those that are missing expectations are getting shellacked." Among individual stocks, Qualcomm advanced 9.8% following its earnings beat. Shares of used car platform Carvana(CVNA.N) New Tab, opens new tab surged 33.8 % on its upbeat profit forecast. But disappointing profit guidance sent DoorDash's (DASH.O) New Tab, opens new tab stock down 10.3 %. Etsy (ETSY.O) New Tab, opens new tab shares slid 15.0 % after the online marketplace missed Wall Street expectations for first-quarter gross merchandise sales and profit. Peloton (PTON.O) New Tab, opens new tab dropped 2.5 % after the fitness equipment maker's CEO stepped down and the company announced a 15% cut to its global workforce. The Dow Jones Industrial Average (.DJI) New Tab, opens new tab rose 322.37 points, or 0.85%, to 38,225.66. The S&P 500 (.SPX) New Tab, opens new tab gained 45.81 points, or 0.91%, at 5,064.2 and the Nasdaq Composite (.IXIC) New Tab, opens new tab added 235.48 points, or 1.51%, at 15,840.96. Nine of the 11 major S&P sectors ended higher, with tech firms (.SPLRCT) New Tab, opens new tab leading the gainers. Materials (.SPLRCM) New Tab, opens new tab suffered the largest percentage loss. Advancing issues outnumbered decliners on the NYSE by a 3.63-to-1 ratio; on Nasdaq, a 2.29-to-1 ratio favored advancers. The S&P 500 posted 15 new 52-week highs and eight new lows; the Nasdaq Composite recorded 59 new highs and 89 new lows. Volume on U.S. exchanges was 11.19 billion shares, compared with the 11.04 billion average for the full session over the last 20 trading days. Sign up here. https://www.reuters.com/markets/us/futures-climb-fed-allays-rate-hike-worries-2024-05-02/

2024-05-02 23:26

SAO PAULO, May 2 (Reuters) - Brazil declared itself on Thursday as free of foot and mouth disease without vaccination, and will request World Organization for Animal Health (WOAH) to recognize that status as it seeks to open more markets for its meat exports. Foot-and-mouth disease causes fever and mouth blisters in animals with foot ruptures, such as cattle, swine, sheep, goats and other cloven-hoofed ruminants. Brazil's Agriculture Ministry said in a statement it will ask for WOAH recognition next August, adding the request could be approved in May, 2025. Agriculture minister Carlos Favaro said in a live streaming video the self-declaration is "an important step towards a global recognition". Brazil is the world's largest beef exporter, with China and the United States as its main buyers. However, the lack of a status for foot and mouth disease free without vaccination in some states prevents Brazil from selling its beef to nations like Japan and South Korea, a scenario Favaro said he wants to change. Sign up here. https://www.reuters.com/business/healthcare-pharmaceuticals/brazil-declares-country-foot-and-mouth-disease-free-without-vaccination-2024-05-02/

2024-05-02 23:09

May 2 (Reuters) - Pioneer Natural Resources on Thursday reported a lower first-quarter profit, weighed down by higher production costs and weak natural gas prices. Earlier in the day, the U.S. Federal Trade Commission gave the go-ahead to Exxon Mobil (XOM.N) New Tab, opens new tab's $60 billion purchase of the company, but barred Pioneer's former CEO, Scott Sheffield, from joining Exxon's board on allegations he attempted to collude with OPEC to raise oil prices. Sheffield retired as Pioneer's CEO on Dec. 31, but continues to serve on its board and was due to take a seat on Exxon's board when the acquisition closed. Exxon said it plans to close the all-stock deal on Friday, bolstering the largest U.S. oil company's production in the Permian Basin. Pioneer shareholders approved New Tab, opens new tab the merger in February, with a majority voting in favor of the deal. Pioneer saw average realized prices of $76.86 per barrel of oil in the quarter, up 2.3% from a year earlier, but average realized prices for gas declined 51% to $1.87 per thousand cubic feet (mcf). Costs associated with oil and gas production rose about 31%. Net income attributable to common shareholders for the three months ended March 31 was $1.1 billion, or $4.57 per share, compared with net income of $1.2 billion, or $5 per share, a year earlier. Sign up here. https://www.reuters.com/markets/deals/pioneer-reports-lower-profit-ahead-its-takeover-by-exxon-2024-05-02/