2024-04-23 10:19
MOSCOW, April 23 (Reuters) - Russia's largest lender, state-owned Sberbank (SBER.MM) New Tab, opens new tab will make a record annual dividend payout of 750 billion roubles ($8.04 billion) on its 2023 results, CEO German Gref said on Tuesday. Sberbank is majority-owned by the state and those dividends make a sizeable contribution to Russia's budget revenues, ultimately enabling the government to continue heavy spending, in particular on what it calls its "special military operation" in Ukraine. Sberbank made record profits of 1.5 trillion roubles in 2023, a more than five-fold increase on the previous year, as Russia's banking sector recovered from the impact of financial sanctions. Shares in Sberbank were down 1.7% in Moscow as of 1015 GMT, dropping from a near 2-1/2-year high of 315.8 roubles hit earlier in the session. Gref said the board had recommended a dividend of 33.3 roubles per share. "This is a record dividend figure in all our history and the result of Sber's successful work last year," Gref said. Banking behemoth Sberbank is one of Russia's most valuable companies in terms of market capitalisation, and its share performance can dictate flows in the wider stockmarket. Gref said 2024 would be a challenging year, but was bullish on Sberbank's profits. "By all our estimates, this year we will be able to earn more net profit than last year," Gref said. ($1 = 93.3100 roubles) Get a look at the day ahead in European and global markets with the Morning Bid Europe newsletter. Sign up here. https://www.reuters.com/markets/europe/russias-sberbank-make-record-8-bln-dividend-payout-2024-04-23/
2024-04-23 10:04
A look at the day ahead in U.S. and global markets from Mike Dolan World markets have cheered up a bit this week, but ailing Tesla's (TSLA.O) New Tab, opens new tab tanking stock price faces a critical earnings test later on Tuesday and this month's European business pulse proved surprisingly racy. Relief at cooling Middle East tensions helped steady the ship on Monday after the worst week on Wall Street since 2022 - with bellwether chip giant Nvidia (NVDA.O) New Tab, opens new tab recouping some of Friday's 10% lunge as Big Tech megacaps get set to report first quarter updates over three days of a heavy earnings diary. First of the "Magnificent 7" vanguard stocks to report on Tuesday is electric vehicle behemoth Tesla, which is down a massive 43% for the year to date and off almost 60% over the past two years amid a brutal price war, waning EV demand worldwide and serial corporate governance and product questions. Tesla lost another 3% on Monday despite the wider Wall Street rebound after it cut prices again in a number of its major markets, including China and Germany, following price reductions in the United States. It was little changed out of hours ahead of Tuesday's bell. China's state planner expects an intensified price war among automakers of electric cars and plug-in hybrids this year because of overhanging supply and other issues, the government body said in a statement on Monday. While Big Tech nerves are a feature of this month's shakeout of the major stock indexes, investors will look to the upcoming earnings for a clearer picture. Artificial intelligence darling Nvidia, which is still up more than 50% for 2024, appeared to catch a bid on last week's sizeable dip - with worsening geopolitics one factor influencing the stock. Chinese universities and research institutes recently obtained high-end Nvidia AI chips through resellers despite the U.S. widening a ban last year on the sale of such technology to China, according to a Reuters review of tender documents. What is more, Apple's (AAPL.O) New Tab, opens new tab smartphone sales in China declined by 19.1% in the first quarter of 2024, while rival Huawei's [RIC:RIC:HWT.UL] grew by 69.1%, signaling an increasing threat to the U.S. firm's dominance in the high-end segment of the world's largest smartphone market. Apple's China smartphone market share fell to 15.7% in the fist three months, according to Counterpoint Research. More broadly, S&P500 futures held Monday's cash market bounce back above the 5,000 round figure - with eyes now trained on both the earnings season and increasing pessimism about the chances for any Federal Reserve interest rate cut this year. As Fed officials are now in a blackout period before their next May 1 policy decision, futures pricing has reduced 2024 easing expectations to less than 40 basis points for the first time this year and now only sees an 80% chance of a quarter point rate cut before the November election. With some $69 billion of two-year Treasuries coming under the hammer later on Tuesday, two-year yields hovered just shy of 5.0%. Even in the face of more stern warnings from Japanese government officials about potential yen-supporting intervention, the dollar continued to set new 34-year highs against the Japanese currency just under 155. The Bank of Japan will raise rates again if trend inflation accelerates towards its 2% target as expected, BOJ governor Kazuo Ueda said. Flash U.S. April business readings will color in the picture further today, with Europe's equivalent surveys out already and beating forecasts. German business, in particular, unexpectedly returned to expansionary mode this month. That surprise gave the euro a lift - and knocked the dollar's wider DXY (.DXY) New Tab, opens new tab index back a bit in the process - even though money markets are still more than 50% priced for a European Central Bank rate cut as soon as June. Despite a miss in the manufacturing sector, the overall British business reading also beat forecasts and lifted sterling off Monday's five-month lows. The combination of recent sterling weakness and rising Bank of England rate cut hopes earlier saw Britain's blue-chip FTSE 100 (.FTSE) New Tab, opens new tab hit a record high - even though it still lags U.S. and European benchmarks this year and the domestically-focused FTSE250 (.FTMC) New Tab, opens new tab midcaps remain in the red for 2024. Elsewhere, China's mainland stocks (.CSI300) New Tab, opens new tab continued to underperform worldwide - although Hong Kong (.HSI) New Tab, opens new tab gained again on Tuesday amid optimism over proposed reforms aimed at boosting the city's attractiveness to foreign investors. Delivery giant Meituan (3690.HK) New Tab, opens new tab and e-commerce firm JD.com (9618.HK) New Tab, opens new tab led Tuesday's gains and rose 8% and 6% respectively. In Europe, a near 5% gain in Novartis (NOVN.S) New Tab, opens new tab stood out as the Swiss drugmaker raised its full-year outlook. The wobbly tech sector got a boost from SAP's (SAPG.DE) New Tab, opens new tab 4% rise after the German company reported a 24% jump in first-quarter cloud revenue. Back on Wall Street, the wait for Tesla's update will be filled with updates from the likes of Texas Instruments, Visa, UPS, General Motors, Lockheed Martin and Halliburton. Key diary items that may provide direction to U.S. markets later on Tuesday: * Flash April business surveys from the United States and around the world, U.S. March new home sales, Richmond Federal Reserve April business surveys, Philadelphia Fed releases April service sector survey * US corporate earnings: Tesla, Texas Instruments, Visa, MSCI, Invesco, Lockheed Martin, UPS, General Motors, Halliburton, GE, Chubb, Steel Dynamics, CoStar, Pepsico, IDEX, EQT, Baker Hughes, Seagate Technology, Quest Diagnostics, Freeport-McMoRan, Kimberly-Clark, Danaher, Nextera Energy, Enphase Energy, Pentair, Equity Residential, Veralto, Pultegroup, Fiserv, Sherwin-Williams, WR Berkley etc * Bundesbank President and European Central Bank policymaker Joachim Nagel speaks; Bank of England chief economist Huw Pill speaks * US Secretary of State Antony Blinken visits China * US Treasury sells $69 billion of 2-year notes Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. https://www.reuters.com/markets/us/global-markets-view-usa-2024-04-23/
2024-04-23 09:12
KAMPALA, April 23 (Reuters) - The Ugandan shilling was flat against the dollar on Tuesday, with some inflows of hard currency from non-governmental organisations (NGOs) helping provide support, traders said. At 0856 GMT commercial banks quoted the shilling at 3,810/3,820, same level as Monday's close. Coming soon: Get the latest news and expert analysis about the state of the global economy with Reuters Econ World. Sign up here. https://www.reuters.com/markets/currencies/ugandan-shilling-flat-charity-inflows-offer-support-2024-04-23/
2024-04-23 07:51
MUMBAI, April 23 (Reuters) - India's sugar consumption this year is poised to hit a record high as demand during the peak summer season gets a boost from heat waves and the mobilisation of millions for elections in the scorching temperatures. Higher consumption would lift local prices and boost margins of sugar producers such as Balrampur Chini (BACH.NS) New Tab, opens new tab, Shree Renuka Sugars (SRES.NS) New Tab, opens new tab, Bajaj Hindusthan (BJHN.NS) New Tab, opens new tab, and Dwarikesh Sugar (DWAR.NS) New Tab, opens new tab and help them in making cane payments on time to farmers. Consumption of cold drinks and ice cream, and as a result demand for sugar, rises in India during the summer months roughly from mid-March to mid-June. But this year demand is above average as heat waves and election rallies boost consumption of ice-cream and soft drinks, said Avantika Saraogi, executive director at Balrampur Chini Mills. Maximum temperatures in many parts of India have risen above 40 degrees Celsius, and the weather department has forecasted that the country is likely to experience more heat-wave days than normal between April and June. During the harsh summer, India is hosting the world's largest election, in which nearly a billion people will be eligible to vote. Political parties hold huge rallies, some attended by as many as 200,000 people, undeterred by the sweltering heat, which only intensifies as the campaign picks up pace. Earlier this week, following an energetic election rally at Pune in the scorching afternoon sun, dedicated workers of a political party flocked to a nearby restaurant to quench their thirst with refreshing soft drinks. "It's sweltering out there. We need something icy to keep us going in this heat," said Mahesh Pawar, one of the workers. "We're grateful to our leader for providing us with these refreshing beverages to keep our spirits high." SWEET SUMMER India's sugar consumption in during April-June could rise to 7.5 million tons, up 5% from a year ago, said a Mumbai-based dealer with a global trade house. This year's unusual rise in consumption is temporary, with demand growth returning to a normal pace next year, said Prakash Naiknavare, managing director of the National Federation of Cooperative Sugar Factories Ltd. "But right now the industry is experiencing an unusual boost in demand. This is expected to lift total consumption this year to a record 29 million metric tons," Naiknavare said. India's sugar consumption in the 2022/23 marketing year, which ended on Sept. 30, stood at 27.85 million tons. Higher demand has already begun lifting sugar prices, which have risen nearly 3% in a fortnight. The government has allocated a higher quota for April compared to last year, but prices are still rising due to robust demand from bulk consumers, said Ashok Jain, president of the Bombay Sugar Merchants Association. Coming soon: Get the latest news and expert analysis about the state of the global economy with Reuters Econ World. Sign up here. https://www.reuters.com/world/india/indias-sugar-demand-surges-heat-wave-election-season-2024-04-23/
2024-04-23 07:30
JOHANNESBURG, April 23 (Reuters) - South Africa's rand reversed some of its losses on Tuesday as global investor concerns over rising tensions in the Middle East receded. At 1617 GMT, the rand traded at 19.1125 against the dollar , 0.44% stronger than its previous close. The dollar index retreated against a basket of currencies and was last trading 0.38% lower. Analysts earlier pointed to a decline in metal prices as the reason for the local currency's recent weakness, in addition to the risk-off sentiment fuelled by the tiff between Iran and Israel. Locally, South Africa's central bank in a biannual review of its monetary policy stance said the path back to 4.5% inflation would probably be "bumpy and protracted" after setbacks in recent months. South Africa's leading indicator, which collects data on vehicle sales, business confidence, money supply and other factors, rose 1.7% month-on-month in February, central bank data also showed. On the stock market, the Top-40 (.JTOPI) New Tab, opens new tab index ended up 0.82% while the broader all-share (.JALSH) New Tab, opens new tab index closed 0.63% higher. South Africa's benchmark 2030 government bond was stronger, with the yield down 6 basis points at 10.695%. Sign up here. https://www.reuters.com/world/africa/south-african-rand-trades-lower-metal-prices-retreat-2024-04-23/
2024-04-23 07:20
H1 adjusted operating profit 951 mln stg, up 39% Expects "significant growth" in full year profit Primark to roll out Click & Collect service in UK Shares up 7% LONDON, April 23 (Reuters) - Associated British Foods (ABF.L) New Tab, opens new tab forecast "significant growth" in full-year profit after reporting a 39% jump in the first half that was driven by an improved performance at its Primark fashion retail stores. The company, whose shares were up 7% in early trading, had previously forecast "meaningful progress" in full-year profit. AB Foods, which also owns major sugar, grocery, agriculture and ingredients businesses, said adjusted operating profit, its key profit measure, was 951 million pounds ($1.17 billion) in the six months to March 2, on a 2% climb in revenue to 9.73 billion pounds. "The group has delivered a strong first half performance and is on track to deliver significant growth in both profitability and cash generation ahead of expectations at the start of this financial year," it said. Primark's first half revenue rose 7.5% to 4.5 billion pounds, with like-for-like sales up 2.1%. It logged an operating profit margin of 11.3%, up from 8.3%, partly driven by improvements in the costs of the products it buys. The group said Primark would roll out its click & collect service more broadly in the UK after a successful trial. Unlike most of its rivals, Primark does not offer home delivery. "We expect Primark to continue to perform well in the second half driven by our store expansion programme and the modest levels of like-for-like growth, as we focus on driving volumes," the group said, cautioning that the consumer environment "remains soft". It forecast a "moderate improvement" in Primark's operating profit margin in the second half compared to the first. The group also expects its grocery business, which includes products such as Twinings tea, Jordans cereals, Kingsmill bread and Ovaltine drinks, to continue to perform well in the second half. It forecast a "substantial improvement" in profitability in its sugar business. ($1 = 0.8107 pounds) The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/business/retail-consumer/primark-owner-ab-foods-expects-significant-growth-full-year-profit-2024-04-23/
