2024-04-05 06:41

MOSCOW, April 5 (Reuters) - Gazprom Neft (SIBN.MM) , opens new tab, the oil arm of Russian energy giant Gazprom (GAZP.MM) , opens new tab, has overhauled its management structure in order to improve the governance, the Vedomosti and Kommersant daily reported on Friday, citing sources. It also said that Vadim Yakovlev, who was in charge of the production and exploration unit, had left the company, as Gazprom has moved to strengthen its grip over Gazprom Neft, which is Russia's third-largest oil producer. Anton Dzhalyabov, who joined the company in August as deputy general director and chief engineer, will take over from Yakovlev, according to the newspaper. He has a background of working at Gazprom. A source close to Yakovlev confirmed his departure. He oversaw a spectacular doubling of Gazprom Neft's hydrocarbon production to 100 million tons per year and the start of production at Russia's first offshore Arctic oilfield, Prirazlomnoye. Yakovlev had worked at Gazprom Neft for 17 years, 12 of them in charge of its production and exploration. Gazprom Neft did not immediately reply to a request for comment. Gazprom Neft has fared better than its owner, Gazprom, the world's biggest natural gas company by output and reserves, which saw its earnings plummet as its sales to Europe dwindled amid political strains over Ukraine. In November, the market capitalisation of Gazprom dipped below that of Gazprom Neft amid high oil prices and after a dividend announcement by the subsidiary. Gazprom bought Gazprom Neft, which was then called Sibneft, for more than $13 billion from tycoon Roman Abramovich in 2005. 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/russias-gazprom-neft-overhauls-management-structure-output-chief-quits-vedomosti-2024-04-05/

2024-04-05 06:28

April 5 (Reuters) - India's key rate was left unchanged for a seventh straight meeting on Friday, in line with expectations, as the central bank awaited a sustained fall in inflation towards its 4% target amid robust economic growth. The six-member monetary policy committee (MPC), consisting of three Reserve Bank of India (RBI) and three external members, left the key repo rate (INREPO=ECI) , opens new tab unchanged at 6.50%. Five members voted in favour of the rate decision while the monetary policy stance was retained at 'withdrawal of accommodation', suggesting the panel intends to keep policy restrictive. The Indian economy should expand by 7% in the fiscal year 2025, while retail inflation is seen at 4.5%, RBI Governor Das said, with volatile food prices seen as a continuing risk. "It is essential, in the best interest of the economy, that CPI (consumer price index) inflation continues to moderate and aligns to the target on a durable basis. Till this is achieved, our task remains unfinished," Das said. COMMENTARY: KUNAL KUNDU, INDIA ECONOMIST, SOCIETE GENERALE, BENGALURU "With this decision, the June rate cut is definitely off the table and there is a possibility of rate cut being pushed eventually to the third quarter and possibly fourth quarter." "Although inflation is clearly easing, RBI does not see its trajectory suggesting a move toward its median target of 4.0% on a durable basis. With food inflation being the prime driver of headline inflation while core inflation is at its pandemic low and well below RBI's median inflation target, we feel that the hawkish monetary policy stance will potentially cost growth." SHILAN SHAH, DEPUTY CHIEF EMERGING MARKETS ECONOMIST, CAPITAL ECONOMICS, LONDON "The RBI kept the repo rate on hold at 6.5% today as expected but the more interesting aspect was the slight dialling down of its hawkish rhetoric. With inflation grinding down towards the central bank's 4% target, we remain comfortable with our view that the RBI will start cutting rates in the third quarter." "We think inflation will continue to gradually drop back over the coming months, reaching the 4% target by the middle of the year. As inflation falls, a change in policy stance looks on the cards for the June meeting, which would lay the groundwork for a 25 basis points rate cut in August." UPASNA BHARDWAJ, CHIEF ECONOMIST, KOTAK MAHINDRA BANK, MUMBAI "The Monetary Policy Committee on expected lines maintained status quo on rates and stance. While low core inflation provides comfort, the uncertainty on food inflation remains a worry." "Further, the higher U.S. yields, higher oil prices and other commodities along with possible delay in Fed's rate easing cycle will keep the MPC wary. Accordingly, we do not see much scope for any rate easing until the second quarter of FY25." DEVENDRA KUMAR PANT, CHIEF ECONOMIST, INDIA RATINGS AND RESEARCH, GURUGRAM "We expect monetary easing either through rate cut or change in stance to begin from October 2024." "The strong growth momentum may limit rate cuts in easing cycle to 50 to 75 basis points." SAKSHI GUPTA, PRINCIPAL ECONOMIST, HDFC BANK, GURUGRAM "The policy broadly mirrored the last policy in both its tone and action with no let up in its hawkish tone or any indication of a policy pivot in the coming months." "The likelihood of rate cuts or change in stance are increasingly being pushed forward to the third quarter of FY25. We see cumulative 50 basis points rate cuts in FY25." RADHIKA RAO, SENIOR ECONOMIST, DBS BANK, SINGAPORE "The commentary belied expectations of any potential dilution in the stance despite softer CPI prints and plans for significant fiscal consolidation this year." "In addition to risks from domestic weather and spillover risks on food segments, the recent up-move in global oil prices could also complicate the forward-looking inflation outlook." GARIMA KAPOOR, ECONOMIST AND SENIOR VICE PRESIDENT, INSTITUTIONAL EQUITIES, ELARA CAPITAL, MUMBAI "We do not expect the Monetary Policy Committee to begin policy rate cuts before the third quarter of FY25 but see tailwinds for debt market persisting amid inclusion in global bond indices, moderating core inflation and steady global commodity prices, excluding energy." MADHAVI ARORA, LEAD ECONOMIST, EMKAY GLOBAL, MUMBAI "The RBI policy has been somewhat pegged to the Fed, specifically over the last two years, even as it formally targeted inflation." "This seems fair, as external dynamics have been fluid, implying that the policy prerogative needs to be flexible for ensuring financial stability." ANITHA RANGAN, ECONOMIST, EQUIRUS, MUMBAI "The RBI has a view that domestic growth momentum led by rural recovery, private capex and government investment will remain strong into the year, and inflation is also expected to remain moderated." "However, the key headline risk is coming from rising geopolitics which is also getting evidenced in rising crude prices. The impact on inflation from the above two factors warrant a watch and staying cautious on the policy." SACHCHIDANAND SHUKLA, GROUP CHIEF ECONOMIST, LARSEN & TOUBRO, MUMBAI "The Governor and RBI have done well to reiterate their conditional commitment to getting inflation within the comfort zone." "The down move on rates will happen once there is further clarity on three things: monsoon forecasts by way of spatial and temporal distribution, presentation of the final budget and a definitive move from the Fed." ANUJ PURI, CHAIRMAN, ANAROCK GROUP, MUMBAI "The decision to maintain status quo will keep the ongoing residential real estate sales momentum on course and unimpeded." "Aspiring homebuyers eyeing a purchase will proceed with confidence." SUVODEEP RAKSHIT, SENIOR ECONOMIST, KOTAK INSTITUTIONAL EQUITIES, MUMBAI "We continue to expect a shallow rate cut cycle from the third quarter of FY25 onwards with the stance changing to neutral at the end of the second quarter or along with the rate action." The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/markets/rates-bonds/view-indias-cenbank-leaves-rates-unchanged-expected-2024-04-05/

2024-04-05 06:27

LONDON, April 5 (Reuters) - Shell (SHEL.L) , opens new tab said on Friday it expects significantly lower results from its liquefied natural gas trading business in the first quarter of 2024 compared with the previous three months. In an update ahead of quarterly results on May 2, Shell also said its oil trading results are expected to be significantly higher than the last quarter of 2023. Shell, the world's largest oil and gas trader, said its LNG volumes are expected between 7.2 million and 7.6 million metric tons in the first three months of 2024, compared with 7.1 million tons in the previous quarter. Nearly a third of Shell's Q4 profit came from the $2.4 billion it made in LNG trading as it captured strong demand ahead of winter, three sources close to the company told Reuters in February. Shell shares were up 0.29% at the start of trading in London. Shell expects a smaller loss in its chemicals business, which has been under heavy pressure due to weak global demand. Chemicals profit margins are expected to rise to $151 a ton from $125 a ton in the previous quarter. The British energy giant, which reported a $28 billion profit for 2023, expects to take a write-off on exploration of about $600 million, mainly in Albania. 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/shell-sees-lower-integrated-gas-performance-q1-2024-04-05/

2024-04-05 05:59

HUALIEN, Taiwan, April 5 (Reuters) - Rescuers in Taiwan faced the threat of further landslides and rockfalls in their search on Friday for a dozen people still missing from this week's earthquake, as the death toll rose to 12 and some of the stranded were brought to safety. Searchers discovered two more bodies after Wednesday's quake of magnitude 7.2 struck the sparsely populated, largely rural eastern county of Hualien, stranding hundreds in a national park as boulders barrelled down mountains, cutting off roads. As some 50 aftershocks rattled the area overnight, some felt as far away as Taipei, rescuers said about 400 people cut off in a luxury hotel in the Taroko Gorge national park were safe, with helicopters ferrying out the injured and bringing supplies. "Rain increases the risks of rockfalls and landslides, which are currently the biggest challenges," said Su Yu-ming, the leader of a search team helping the rescue effort. "These factors are unpredictable, which means we cannot confirm the number of days required for the search and rescue operations." Taiwan's fire department said two bodies were found in the mountains, but did not immediately update the death toll. It put the number of missing at 18, three of them foreigners of Australian and Canadian nationality. It dropped from the list of missing an Indian national whose inclusion it called a mistake, but did not elaborate. A group of 50 hotel workers marooned on a road to the national park are now mostly safe. "I am lucky to survive," said David Chen, 63, a security manager at the hotel, after his rescue. "We were terrified when the earthquake first happened. We thought it was all over, all over, all over, because it was an earthquake, right?" Rocks were still tumbling down nearby slopes as the group left, he added. "We had to navigate through the gaps between the falling rocks, with the rescue team out front." Chen's 85-year-old mother wept in relief on being reunited with her son, as the family had not known for some time if he had survived. "I was happy when he returned," said the mother, Chen Lan-chih. "I didn't sleep at all last night and couldn't eat anything." The quake came a day before Taiwan began a long weekend holiday for the traditional tomb sweeping festival, when people head to their homes to spruce up ancestral graves. Many others visit tourist spots, like Hualien, famed for its rugged beauty, but the earthquake has crushed business, with many bookings cancelled, some businesses said. "This is a disaster actually for us because no matter (whether) hotel, hostel, restaurants (everything) really depends on tourism," said hostel owner Aga Syu, adding that her main concern was the well-being of guests. "I hope this won't destroy their image of Hualien." Taiwan lies near the junction of two tectonic plates and is prone to earthquakes. More than 100 people were killed in a 2016 quake in its south, while one of magnitude 7.3 killed more than 2,000 in 1999. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/world/asia-pacific/taiwan-searches-18-still-missing-after-earthquake-2024-04-05/

2024-04-05 05:34

NEW YORK, April 5 (Reuters) - The dollar strengthened on Friday but was still set for a weekly loss after data showed U.S. employers hired far more workers than expected in March, potentially delaying anticipated interest rate cuts from the Federal Reserve this year. Nonfarm payrolls increased by 303,000 jobs last month, the Labor Department said in its closely watched employment report on Friday. Economists polled by Reuters had forecast 200,000 jobs, with estimates ranging from 150,000 to 250,000. The dollar index was last up 0.048% at 104.27, after rising to 104.690 It has had a turbulent week, falling from a five-month high to a two-week low after an unexpected slowdown in U.S. services growth supported expectations of Fed rate cuts. U.S. interest rate futures pared back the odds of a rate cut in June to 54.5% after the release of the jobs report, according to CME Group's FedWatch tool. "It's really encouraging the market to get more and more comfortable with this fact that we know rates have to come down, but do they really need to come down quickly? And do they need to come down as much?" said Amo Sahota, director at Klarity FX in San Francisco. Investors have reeled in expectations of how much the Fed might cut rates this year, with U.S. rate futures now pricing in two cuts in 2024. "That should continue to underpin dollar strength on a broad basis," said Brad Bechtel, global head of FX at Jeffries. But economic strength and higher prices of commodities, including oil, copper, coffee and cocoa, is complicating the inflation picture. The dollar rebounded after comments on Thursday from Minneapolis Fed President Neel Kashkari, a non-voter on this year's policy-setting committee, that rate cuts might not be required this year if inflation continues to stall. Against the dollar, the Japanese yen weakened 0.14% to 151.540. Japanese authorities have continued to push back against excessive currency weakness, and will likely intervene to buy the yen if it breaks well below 152 per dollar, former top Japanese currency official Tatsuo Yamazaki said on Thursday. Japanese Finance Minister Shunichi Suzuki on Friday reiterated the government's resolve to take appropriate action against sharp yen falls. Bank of Japan Governor Kazuo Ueda said the Japanese central bank could "respond with monetary policy" if weakness in the yen affected the nation's economy in ways that are hard to ignore, the Asahi newspaper reported on Friday. Ueda also said inflation would likely accelerate from "summer toward autumn" as bumper pay hikes push up prices, his strongest hint yet that another interest rate hike was possible in coming months. Elsewhere, the euro was last flat at 1.0837, while sterling eased 0.04% to 1.264. The Aussie was last down 0.08% to 0.658. In cryptocurrencies, bitcoin fell 0.53% to $67,589, while ether was $3,328.7, up 0.09%. 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/dollar-steady-ahead-jobs-data-yen-hits-two-week-high-2024-04-05/

2024-04-05 05:09

March U.S. unemployment report stronger than expected All major S&P 500 sectors advance in broad equity rally Crude oil settles at highest levels since October Gold hits fresh all-time high NEW YORK, April 5 (Reuters) - Stocks on Wall Street rallied and the dollar rose on Friday, as bond prices fell, after another blowout U.S. jobs report suggested the Federal Reserve may delay cutting interest rates while it awaits further inflation data. Gold prices hit record highs and the Mexican peso, which tends to benefit from strong U.S. consumer demand, appreciated the most since late 2015. U.S. employers hired far more workers than expected in March and raised wages at a steady clip, the Labor Department said. Anthony Saglimbene, chief market strategist at Ameriprise Financial in Troy, Michigan, said investors are reassessing whether the Fed cuts rates three times in 2024. "It might be two, it's too early to tell," he said. "If the economy is running the way it's running now through most of this year, then it might be likely that the Fed does not cut interest rates this year." Expectations of rate cuts as soon as June declined along with the view for the size of rate cuts this year. Data showing a cooling U.S. services sector and comments this week from Fed Chair Jerome Powell had reinforced the view that rate cuts were likely to commence in 2024. But on Thursday, Minneapolis Fed President Neel Kashkari said rate cuts might not be required this year. The year-over-year change in the average hourly earnings cooled and will restore confidence that wage increases are normalizing, said Dec Mullarkey, managing director of investment strategy and asset allocation at SLC Management in Boston. "Right now, this gives the Fed more reason to stay patient and slightly changes the odds of rate cuts this year from three to two," he said. Small business surveys show demand for workers is headed lower and wages are just above the run rate of the Fed's 2% inflation target, said Roosevelt Bowman, senior investment strategist at Bernstein Private Wealth Management in New York. "The hiring intentions and muted wage growth is encouraging for the Fed and saying, 'Hey, we're adding jobs without necessarily adding inflationary pressures'." Next week's consumer price index (CPI), which is expected to show core inflation slowing to 3.7% in March from 3.8% the prior month, is likely to shape near-term Fed policy. MSCI's gauge of global stock performance (.MIWD00000PUS) , opens new tab closed up 0.4%, weighed down by losses in Europe where the pan-regional STOXX 600 index (.STOXX) , opens new tab fell 0.84%. But Wall Street rallied, with the Dow Jones Industrial Average (.DJI) , opens new tab up 0.77%, the S&P 500 (.SPX) , opens new tab 0.96% and the Nasdaq Composite (.IXIC) , opens new tab 1.09%. The yield on benchmark 10-year Treasury notes rose 7.5 basis points to 4.384%. Bond yields move inversely to their price. The dollar index , a measure of the U.S. currency against six major peers, edged up 0.07%. Spot gold hit a record high of $2,330.06 an ounce, with U.S. gold futures settling 1.6% higher to $2,345.4. Oil prices rose, on course for a second weekly gain, supported by geopolitical tensions in the Middle East, concerns over tightening supply and expectations about demand growth. Crude oil settled at its highest levels since October. U.S. crude futures rose 32 cents to $86.91 a barrel, while Brent settled up 52 cents at $91.17 a barrel. Earlier in Asia, MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) , opens new tab fell 0.45%. A holiday in China also made for thinner trade. Tokyo's Nikkei (.N225) , opens new tab fell 2%, pressured in part by a stronger yen, thanks to the prospect of further rate hikes there and more jawboning from Japanese officials. Hong Kong's Hang Seng Index (.HSI) , opens new tab was little changed. 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/global-markets-wrapup-1-2024-04-05/