2024-04-10 12:18

April 10 (Reuters) - Zimplats (ZIM.AX) New Tab, opens new tab will reduce its headcount by 1% as it implements broad cost cuts to survive a sharp fall in platinum group metal (PGM) prices, CEO Alex Mhembere said on Wednesday. Zimbabwe's biggest platinum producer announced in March it was offering voluntary job cuts in an attempt to contain costs amid declining revenues. Southern African PGM miners, including Zimplats' parent company Impala Platinum (IMPJ.J) New Tab, opens new tab, Sibanye Stillwater and Anglo American Platinum have scrambled to cut costs, and thousands of jobs, after profits slumped as metal prices plunged over the past year due to weak auto production and concerns about a global economic slowdown. "Through these current headwinds, we are only going to reduce our people by 1% of the total labour complement of 8,000 people that we have," Mhembere told a PGM mining conference in Johannesburg. Job cuts were "not the only lever that can sustain the business", he said. The company wants to maintain its annual output around 600,000 PGM ounces per year and was targeting improving productivity as a way of containing costs, Mhembere added. He said Zimplats was curtailing spending under its 10-year $1.8 billion expansion project announced in 2021 and would be "capital light" in its next financial year, which starts in July. "We're going to spend less. We will only be focusing on our replacement capital expenditure, stay-in-business capex and very little on growth capex," Mhembere said. Some of the projects Zimplats is deferring include sulphur abatement and the second phase of a solar power plant. Mhembere said Zimplats did not see any potential adverse impact of Zimbabwe's new gold-backed currency, introduced last week to replace an inflation-ravaged Zimbabwe dollar, on its business. "It is not a threat to us. We operate in United States dollars. This is a local currency and it will not affect our business," he said. 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/commodities/zimplats-cap-job-cuts-1-workforce-ceo-says-2024-04-10/

2024-04-10 12:11

LONDON, April 10 (Reuters) - Sterling rose on Wednesday against the euro and the dollar ahead of U.S. inflation data later in the day, while traders also focused on a European Central Bank meeting on Thursday and UK economic figures due this week. Traders are watching for signs of when central banks might start cutting interest rates. The U.S. consumer price data for March, due at 1230 GMT, could provide hints on the Federal Reserve's policy outlook, while Thursday's ECB meeting may give investors an indication as to when the central bank will trim its rates. "While we see a good chance that both the euro and sterling will be driven in large part by Wednesday’s U.S. inflation report, a couple of noteworthy announcements later in the week look set to trigger bouts of fresh volatility in markets," said Matthew Ryan, head of market strategy at Ebury, mentioning the ECB policy decision and UK GDP figures. UK gross domestic product (GDP) data due on Friday will provide an indication as to the state of the economy and clues on how much longer the Bank of England (BoE) can hold rates at 5.25%. Money markets are currently expecting 70 basis points of interest rate cuts by the BoE this year and they see a 60% chance of the first cut arriving in June, according to LSEG data. “Investors will be hoping for a little more clarity on the bank’s plans for policy beyond then (June). We think that any clear forward guidance for the July meeting onwards is probably rather unlikely at this juncture, so investors may be left somewhat disappointed," said Ryan. Sterling was 0.11% higher versus the dollar at $1.2693, at close proximity to a three-week high touched on Tuesday. It rose to a one-week high against the euro, last 0.1% higher on the day at 85.55 pence. Keep up with the latest medical breakthroughs and healthcare trends with the Reuters Health Rounds newsletter. Sign up here. https://www.reuters.com/markets/currencies/sterling-nears-3-week-high-us-inflation-ecb-meeting-focus-2024-04-10/

2024-04-10 12:05

LAKE SUVIANA, Italy, April 10 (Reuters) - Hopes of finding survivors of an accident at a power plant in northern Italy are dwindling, firefighters said on Wednesday, as rescuers searched for four people missing in an area of the plant where water was rising rapidly. At least three people were killed on Tuesday after a fire and explosion occurred underground at the hydroelectric power plant owned by Enel Green Power, part of Enel Group (ENEI.MI) New Tab, opens new tab, in Bargi, about 80 km (50 miles) from Bologna. "The rescuers' hope is always to find people alive. The scenario we see does not make us believe much in these hypotheses, but I repeat that we are also accustomed to miracles," fire brigade's spokesperson, Luca Cari said on Wednesday. Cari said that the situation was very difficult, due to the water rising quickly inside the power plant, which was built underground on one of the banks of Lake Suviana. The rescuers were working mainly with divers, but they still did not have details on the potential causes and the dynamics of the accident, he added. The power plant had been undergoing efficiency works, which Enel Green Power entrusted in 2022 to three primary companies, Siemens Energy (ENR1n.DE) New Tab, opens new tab, ABB and Voith, Enel's subsidiary said in a statement. "From what has been reconstructed, the testing of the first generation group had already been completed in the past days and, at the time the accident occurred, the testing of the second group was underway," Enel Green Power said. The CEO of Enel Green Power, Salvatore Bernabei, went immediately to the site on Tuesday, the company said, adding it would fully collaborate with the relevant authorities to ascertain the facts. The power station has a capacity of 300 megawatt (MW), part of Enel Group's 13,000 MW of total hydroelectric capacity in Italy. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/world/europe/few-hopes-finding-survivors-italy-hydro-plant-search-continues-2024-04-10/

2024-04-10 12:00

LITTLETON, Colorado, April 10 (Reuters) - France has boosted electricity exports by 500% during the first quarter of 2024 from the same period in 2023, and is forecast to lift net electricity exports to a new record for the full year, according to data from Energy Charts and LSEG. As Europe's largest net exporter of electricity and one of the largest European clean power producers, France is a crucial supplier of low-carbon electricity throughout the continent. In 2023, France's electricity flows to key economies such as Germany and Italy helped offset domestic power generation reductions in those countries caused by shortages of natural gas since Russia's invasion of Ukraine in early 2022. In 2024, France's higher export flows will add to the growing electricity supplies expected to be generated throughout the rest of Europe, and could help spur a recovery in regional business activity by further reducing regional power prices. Wholesale power costs around western Europe during the first quarter of 2024 were roughly 30% lower than during the same period in 2023, and the lowest since mid-2021, data from LSEG shows. STRONG START Fuelling the climb in French electricity exports has been a steady rise in France's domestic power generation. Nuclear power output - which accounts for around 65% of total electricity generation in France - has climbed by 11.6% during the first quarter of 2024 from the same period in 2023 to the highest since early 2021, data from LSEG shows. Output increases have also emerged from wind, solar and natural gas sites to help lift total electricity output by 11% during the first quarter from Q1 2023. This higher level of power generation has in turn spurred a sharp climb in electricity exports. Total electricity exports from France during the first three months of 2024 was 19,684 gigawatt hours (GWh), according to Energy Charts, a website that tracks regional electricity generation and trade flows. That total compares to just 3,292 GWh of exports during the same period in 2023, when France's power producers grappled with below-normal nuclear power output due to maintenance work on key reactors and protracted energy sector labour negotiations. For 2024 as a whole, LSEG forecasts total France electricity net trade to amount to 133.6 TWh, up from 58.5 TWh in 2023. REGIONAL SQUEEZE France's aggressive rise in electricity exports has served to squeeze out supplies from rival exporters in the region. After France's 50.3 terawatt hours (TWh) of full year exports in 2023, the next largest European electricity exporters were Sweden (28.5 TWh), Norway (19.9 TWh), Spain (11.8 TWh), Czechia (9.2 TWh) and the Netherlands (5.6 TWh), Energy Charts data shows. So far in 2024, only the Netherlands has managed a year-on-year increase in export volumes, which are up by just under 6%. Combined exports from Norway, Sweden, Spain and Czechia were down 23% during the first quarter from the same period in 2023, highlighting the impact of France's export surge on regional flows. However, total electricity generation during the first quarter was above year-ago levels in Norway, Sweden and the Netherlands, data from Ember shows. That suggests those countries have the potential to raise export flows, but have likely been dissuaded from doing so by the aggressive volumes shipped by France and the decline in power prices across Europe. Total electricity generation in Czechia and Spain was down 7.5% and 3.9% respectively during the first quarter from the same period in 2023, but is expected to increase over the coming months from solar sites during the northern hemisphere summer. As that additional power flows through local grids, utilities may be forced to lift exports as a means of dispersing surplus electricity and averting additional local power price declines. But if that surplus power hits export markets alongside the projected volumes shipped from France and elsewhere, regional power prices will likely come under fresh pressure. That could be a boon for businesses and other large energy consumers across Europe following the recent stretch of economic weakness that has curbed spending and investment. 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/commodities/france-track-smash-clean-electricity-export-record-2024-2024-04-10/

2024-04-10 11:15

MOSCOW, April 10 (Reuters) - Russia's government is looking at the possibility of introducing some easing of rigorous fuel environmental standards in order to allow the usage of low-quality gasoline in the face of possible fuel shortages, three industry sources told Reuters. According to sources' calculations, it could bring in additional 10%, or between 300,000 metric tons and 350,000 tons a month, of gasoline to the domestic market, enough to meet rising seasonal demand. Ukrainian drone attacks have reduced Russian primary oil refining capacity by some 14% as of the end of March according to Reuters calculations. Russia says the drone attacks amount to terrorism. Ukraine says its drone attacks on Russia are justified because it is fighting for survival and has suffered damage to its infrastructure from Russian air strikes. To tackle possible gasoline shortages, Russia introduced export ban for this kind of fuel with some exceptions. Sources said that the Russian government is considering lowering the bar for the content of some additives and ethanol. Sulphur content is expected to stay unchanged. Since 2016, Russia has allowed only the usage of high-quality gasoline of at least Euro-5 grade. "The energy ministry is considering as a backup measure to lower the bar (of environmental requirements) in order to provide the basis for additional gasoline output," a source said on condition of anonymity as he was not authorised to talk to the media. The energy ministry did not reply to a request for comment. The move to loosen environmental oversight would be a step back from the plans to improve fuel quality and its ecological standards, announced in 2011, when Russian oil firms and the government agreed on plans to modernize country's refineries, which were predominantly built in the 1940s and 1970s. Since 2000, refinery output in Russia has grown by around two thirds, reaching 275 million tons last year. An industry source said the measure would help boost gasoline production at outdated refining facilities. Orsk refinery, which has stopped output due to powerful floods, and Angarsk plant in eastern Siberia, account for the bulk of low-grade gasoline production in Russia. In 2023, total gasoline output in the country reached almost 44 million tons. In the first quarter 2024 it stood at 11.1 million. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. https://www.reuters.com/business/energy/russia-considers-easing-gasoline-environmental-requirements-sources-say-2024-04-10/

2024-04-10 10:48

A look at the day ahead in U.S. and global markets from Mike Dolan Wall St stocks have held up remarkably well in the face of the renewed interest rate angst of the past week but Wednesday's March inflation readout may now be make or break from here. A late bounce for the S&P500 (.SPX) New Tab, opens new tab on Tuesday saw the index close in positive territory and stock futures tick higher ahead of the consumer price report later today. For all the worries about the stubborn 'last mile' of the disinflation process, consensus forecasts would suggest the market calm is warranted for now. The core annual CPI rate is expected to have ticked a tenth of a percentage point lower to 3.7% last month even if headline rates likely picked up steam. The restive Treasury market has also steadied into the critical release, despite a poor 3-year auction on Tuesday and with $39 billion of 10-year notes going under the hammer later. Crude oil's 3% retreat this week from Friday's 2024 high has helped somewhat. The dollar (.DXY) New Tab, opens new tab too has frozen awaiting the inflation readout, with the Bank of Canada deciding on interest rates later today and the European Central Bank meeting on Thursday too. Canadian rates are expected to be kept on hold at 5.0% for now, although money markets still price an 80% chance of a cut in June - as they do for the ECB. With Federal Reserve policy rate futures still wavering about a U.S. cut that month, markets seem comfortable that the ECB, Bank of Canada and even Bank of England will now jump the Fed gun in starting the rate cut cycle. New Zealand's central bank held its rate steady on Wednesday as expected but it cautioned that it may need to remain restrictive for a sustained period to drive inflation down to its 1-3% target range and markets don't expect any easing there until August. What's more, some Fed hawks continue to suggest rates may not be cut at all this year. Atlanta Fed President Raphael Bostic said on Tuesday that it's possible rates stay on hold through 2024 if progress on inflation stalls and the economy continues to outperform. "I can't take off the possibility that rate cuts may even have to move further out," Bostic said in an interview with Yahoo Finance. Fed minutes of its March policy meeting are also released later on Wednesday. Inflation concerns apart, there were some signs of stress in the U.S. corporate picture on Tuesday as the NFIB's small business survey showed confidence ebbing to an 11-year low - albeit with inflation still registering as the major concern. Overseas markets were firmer going into the big U.S. release - perhaps partly emboldened by hopes of earlier credit easing in Europe and elsewhere. Tech stocks were a winner in Europe (.STOXXE) New Tab, opens new tab and Hong Kong (.HSI) New Tab, opens new tab early on Wednesday after giant Taiwanese chipmaker TSMC (2330.TW) New Tab, opens new tab reported a forecast-beating 16.5% rise in first-quarter revenue - the high end of the firm's own guidance as its sales boomed on demand for artificial intelligence applications. Japan's Nikkei (.N225) New Tab, opens new tab and China's mainland indexes (.CSI300) New Tab, opens new tab were underperformers, however. Japanese government bond yields hit a four-week high after Bloomberg reported the Bank of Japan will likely consider raising its inflation forecast at a policy meeting later this month. But, still wary of BOJ intervention, the dollar/yen exchange rate hovered just under the 152 yen level. BOJ boss Kazuo Ueda said the central bank would not directly respond to currency moves in setting monetary policy, brushing aside market speculation that the yen's sharp falls could force it to raise interest rates. "We absolutely won't change monetary policy directly in response to exchange-rate moves," Ueda told parliament. China's markets were also under a cloud on Wednesday after Fitch cut its outlook on China's sovereign credit rating to negative, citing risks to public finances as the economy faces increasing uncertainty in its shift to new growth models. The outlook downgrade follows a similar move by Moody's in December and comes as Beijing ratchets up efforts to spur a feeble post-COVID recovery in the world's second-largest economy with fiscal and monetary support. Chinese government bonds held steady, however. Key diary items that may provide direction to U.S. markets later on Wednesday: * US March consumer price index * Bank of Canada policy decision, news conference * World Trade Organization publishes its Global Trade Outlook * Federal Open Market Committee publishes minutes of March policy meeting * Federal Reserve Board Governor Michelle Bowman, Chicago Fed President Austan Goolsbee and Richmond Fed chief Thomas Barkin all speak * US Treasury sells $39 billion of 10-year notes * US President Joe Biden welcomes Japanese Prime Minister Fumio Kishida for state visit 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-2024-04-10/