2024-04-25 19:26

Canadian dollar rises 0.3% against the greenback Average weekly earnings growth accelerates Price of U.S. oil settles 0.9% higher 10-year yield hits a near six-month high TORONTO, April 25 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Thursday as domestic data showed wage growth picking up and ahead of U.S. inflation data that could offer clues on the prospect of Federal Reserve interest rate cuts. The loonie was trading 0.3% higher at 1.3660 to the U.S. dollar, or 73.21 U.S. cents, clawing back all of the previous day's decline. Gains for the loonie came as the U.S. dollar eased against most currencies after data showed the U.S. economy grew at a surprisingly slow pace and inflation came in hotter than expected in the first quarter. The data raised concern that the U.S. economy is slowing while inflation is still strong, Darren Richardson, chief operating officer at Richardson International Currency Exchange Inc, said in a note. "Investors are hoping to see a drop in inflation so the Fed can cut interest rates thus weakening the U.S. dollar." The U.S. PCE index, due for release on Friday, is among the Fed's most important gauges of price behavior. Canadian payroll employment fell 17,700, or 0.1%, in February following an increase of 35,700 in January, while growth in average weekly earnings accelerated to an annual pace of 4.5% from 3.7%, Statistics Canada said. The Bank of Canada is monitoring wage growth for evidence that recent cooling in Canadian inflation can be sustained. The price of oil, one of Canada's major exports, rose as concern about fuel demand was offset by worries of supply disruptions. U.S. crude oil futures settled 0.9% higher at $83.57 a barrel. Canadian government bond yields climbed across the curve, tracking moves in U.S. Treasuries. The 10-year was up 5.9 basis points at 3.865%, after touching its highest level since Nov. 2 at 3.891%. Sign up here. https://www.reuters.com/markets/currencies/canadian-dollar-gains-investors-eye-us-inflation-pressures-2024-04-25/

2024-04-25 19:22

MONTREAL/OTTAWA April 25 (Reuters) - Bombardier (BBDb.TO) New Tab, opens new tab on Thursday became the latest planemaker to disclose an exemption from Canadian sanctions on Russian titanium, as Canada defended its decision to grant a partial reprieve from recent measures imposed over the war in Ukraine. On Tuesday, Reuters first reported that Airbus (AIR.PA) New Tab, opens new tab had won a waiver from a new Canadian ban on Russian titanium, weeks after Ottawa added supplier VSMPO-AVISMA to a list of entities banned for alleged ties to Russia's military-industrial complex. Canada is the first Western government to ban Russian supplies of the strategic metal as part of a package to mark the second anniversary of Russia's Ukraine invasion in February. VSMPO has for years been a critical supplier of titanium, which is prized for its strength relative to its weight. Traditional customers included most Western planemakers including Bombardier at a time when it was developing the CSeries passenger jet, which it sold to Airbus in 2018. Now purely a manufacturer of business jets, Bombardier no longer purchases Russian titanium directly. But some of its suppliers do, so the company needed an exemption, CEO Eric Martel said during a quarterly results presentation. "We did work with the government and we did work also with all our supplier base to make sure we were doing the right thing. But at the same time we needed to ensure you know that we keep running our factories," he told reporters. Canada's decision to row back on part of the ban for a limited period has been criticized by Ukraine's ambassador to Canada, who on Wednesday called the Airbus waiver "disturbing". Yulia Kovaliv also told national broadcaster CBC that she had sought an explanation from the Canadian government. The Ukrainian Canadian Congress on Wednesday urged the government of Justin Trudeau to enforce its sanctions policy. Speaking to reporters on Thursday, Foreign Affairs Minister Melanie Joly defended the waiver decisions and said jobs in Canada had been the decisive factor. "We will always make sure to put maximum pressure on the Russian regime and meanwhile protect our jobs here at home. We can do that together," she said. Two sources familiar with the matter said Canada's decision to impose sanctions took other Western aerospace nations by surprise and provoked behind-the-scenes discussions between Ottawa and various capitals. 'DECREASED EXPOSURE' Canada's foreign ministry says it has made clear to companies that they must find other sources of titanium. Exemptions issued so far apply only to the aerospace sector, including the military, said a Canadian source with direct knowledge of the matter. The exemption is available only for a limited time, said the source, who requested anonymity given the matter's sensitivity. Airbus has repeatedly argued that banning Russian titanium would damage the aerospace industry while barely hurting Moscow. In Europe, CEO Guillaume Faury said Airbus and others had secured Canadian approvals "to continue to source the small quantity of titanium that we still need." "The Western industry has very significantly decreased its exposure but there is still a certain flow of titanium that is coming and that enables a very large industry," Faury told reporters. "The other main countries of Western aviation have taken a different route which fits with our needs and our beliefs and we expect and we hope to continue to be understood," he added. Asked if he was concerned about the apparent breach in Western unity over titanium sanctions policy, Faury said: "I don't see it as a rupture of unity ... but more as a way for the Canadians to deal with the situation." The titanium row overshadowed a strong set of orders that pushed shares in Bombardier up 9% on Thursday. Orders for its jets rose 60% in the first quarter, pushing the company's backlog to $14.9 billion. But like others in the supply-stretched industry, Bombardier burned more cash than expected after boosting inventory to support increased production. "While we continue to require more working capital investment in the near term, we will be well-placed in the second half of the year and well beyond,” Martel told analysts. The company is ramping up production this year of its super mid-sized Challenger jets which seat about 10 and will expand manufacturing of its large-cabin Global aircraft in 2024. It is facing a challenge from rival General Dynamics' (GD.N) New Tab, opens new tab Gulfstream, which is starting deliveries of its flagship G700 luxury jet that was certified last month. Bombardier reported 20 deliveries in the first quarter, down from 22 a year earlier but said it remains on track to hand over 150-155 jets this year. Revenue fell 12% due to a delivery mix favoring Challengers which are priced below the Globals. Sign up here. https://www.reuters.com/business/aerospace-defense/bombardier-burns-more-cash-inventory-rises-support-business-jet-ramp-up-2024-04-25/

2024-04-25 19:18

April 25 (Reuters) - Consensys has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) tied to the regulation of the Ethereum blockchain, the crypto firm said on Thursday. The regulation of the industry has become a contentious issue as the sector's biggest companies, including Coinbase Global (COIN.O) New Tab, opens new tab, allege the SEC does not have jurisdiction on the grounds that crypto tokens are not securities. The U.S. markets watchdog has been "attempting to unlawfully regulate ether through ad hoc enforcement actions against Consensys and possibly others," Consensys complaint alleged. Consensys said it was looking for the court's confirmation that the SEC does not have legal authority to regulate the user-controlled software interfaces built on Ethereum, or the Ethereum blockchain. The SEC does not currently regulate the crypto asset. It has yet to approve multiple applications of exchange-traded funds seeking to track its spot price. Sign up here. https://www.reuters.com/legal/crypto-firm-consensys-sues-us-sec-over-ethereum-regulation-2024-04-25/

2024-04-25 17:40

FRANKFURT, April 25 (Reuters) - European Central Bank policymaker Fabio Panetta called on Thursday for timely and small interest rate cuts to stem the risk of prolonged economic stagnation in the euro area. The ECB has clearly signalled it will start lowering borrowing costs in June after inflation fell back to just above its 2% target, but investors have started to doubt its resolve to continue on that path . Panetta, the governor of the Bank of Italy, made the case for starting early and going in small steps -- pausing if inflation were to rear its head. "Timely action would allow the ECB to be nimble and move in small, progressive steps," Panetta told an ECB conference. "Small rate cuts would counter weak demand, and could be paused at no cost if upside shocks to inflation were to materialize along the way," he said, adding that large rate cuts could damage the ECB's credibility. Traders were likely to interpret Panetta's comments as endorsing a 25-basis-point cut on June 6, followed by more as soon as the ECB's following meeting on July 18. Panetta argued that hesitation in cutting rates would discourage firms from investing, thereby hampering their productivity and putting them at a disadvantage to global competitors. "From now on, we must weigh the risk of monetary policy becoming too tight," he said. "A tight monetary stance could generate hysteresis effects that would increase the risk of a protracted period of economic weakness." He also noted that inflation expectations were well-anchored around the ECB's 2% target and the probability of a self-sustained inflationary spiral was low. Sign up here. https://www.reuters.com/markets/rates-bonds/ecbs-panetta-calls-timely-small-rate-cuts-2024-04-25/

2024-04-25 15:03

BENGALURU, April 25 (Reuters) - Sri Lankan shares closed higher on Thursday, driven by gains in financial and industrial stocks. * The CSE All Share index (.CSE) New Tab, opens new tab settled 1.4% higher at 12,075.98, gaining for three straight sessions. * LOLC Holdings (LOLC.CM) New Tab, opens new tab and John Keells Holdings (JKH.CM) New Tab, opens new tab were the top gainers on the CSE All Share, rising 5.6% and 2.4%, respectively. * Trading volume on the index fell to 141.70 million shares from 207.60 million shares in the previous session. * The equity market's turnover rose to 2.91 billion Sri Lankan rupees ($9.8 million) from 2.51 billion rupees in the previous session, according to exchange data. * Foreign investors were net sellers, offloading stocks worth 299 million rupees, while domestic investors were net buyers, purchasing shares worth 2.62 billion rupees, the data showed. * For a report on global markets, click ($1 = 296.8000 Sri Lankan rupees) Sign up here. https://www.reuters.com/markets/asia/sri-lankan-shares-end-higher-financials-industrials-gain-2024-04-25/

2024-04-25 14:33

LONDON, April 25 (Reuters) - Britain's finance ministry has named financial services executive Liz Oakes to the Bank of England's Financial Policy Committee and reappointed former Bank of Canada official Carolyn Wilkins to a second three-year term, the BoE said on Thursday. "Ms Oakes joins the FPC following a long career in the financial services sector focussing on payments. She has held a number of executive and board level roles in financial and professional services firms," the BoE said. Oakes' profile on professional networking website LinkedIn shows she was an executive vice president at Mastercard from December 2018 to March 2023, and holds a non-executive position on the board of Mangopay, a payment infrastructure provider. Oakes will start her new role on June 3 and replaces Elisabeth Stheeman on the FPC, whose term expired in February. Wilkins, a former senior deputy governor at the Bank of Canada, will remain on the FPC until June 2027. The FPC is chaired by BoE Governor Andrew Bailey and has 13 members. It monitors financial risks and sets rules around mortgage lending and capital ratios for banks operating in Britain as well as guidelines. Sign up here. https://www.reuters.com/world/uk/uk-finance-ministry-names-liz-oakes-bank-england-fpc-2024-04-25/