2024-03-26 11:48

March 26 (Reuters) - Shares of Krispy Kreme (DNUT.O) , opens new tab surged as much as 23% in premarket trade on Tuesday after the company and McDonald's (MCD.N) , opens new tab said they plan to provide Krispy Kreme's donuts across the fast-food giant's U.S. restaurants by the end of 2026. The companies said phased roll-out of the program will begin in the second half of 2024. Krispy Kreme has been aiming to open its outlets in at least 75,000 points of access such as quick-service restaurants and grocery stores around the world through a hub-and-spoke model. The company said in February that it ended 2023 with 2,300 more points of access than 2022. The partnership comes at a time when McDonald's has struggled with weak overseas demand at its restaurants as a result of boycott campaigns against the burger giant in some international markets in connection with the Israel-Hamas conflict, as well as tough macro economic conditions in China. The companies had been testing the program in 160 McDonald's restaurants in the Lexington and Louisville, Kentucky areas as part of the partnership that began in October , opens new tab 2022. McDonald's has about 14,000 stores in the United States, and has said in December that it plans to open about 10,000 restaurants globally by 2027. 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/krispy-kreme-shares-jump-after-partnership-with-mcdonalds-goes-national-2024-03-26/

2024-03-26 11:44

ATHENS, March 26 (Reuters) - European Central Bank policymaker Yannis Stournaras said on Tuesday that consensus was building within the European Central Bank for a rate cut in June, if inflation develops as projected. In an interview with Greek financial website Mononews.gr, Stournaras said that it seemed there was a consensus for a rate cut in June, if ECB forecasts were confirmed. He added that four rate cuts this year were "reasonable" as long as inflation continued to decrease. The ECB, he said, had no reason to wait for the Fed to cut rates first as "the reasons for the inflation in Europe are different than in the United States". 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/greek-cenbanker-says-consensus-building-ecb-june-rate-cut-2024-03-26/

2024-03-26 11:42

NEW YORK/LONDON, March 26 (Reuters) - (This March 26 story has been refiled to correct the data source to 'NielsenIQ' from 'Nielsen' in paragraph 23) Hershey (HSY.N) , opens new tab, Mondelez (MDLZ.O) , opens new tab and other confection-makers are employing promotions and pitching more non-chocolate Easter treats like cookies 'n' cream bunnies at a time when soaring cocoa prices threaten their profits and shoppers balk at high prices. With shoppers' "impulse buys" of chocolate and candy at convenience stores and in grocery checkout lines down, according to industry data, special occasions like Easter and Halloween are increasingly important to the companies' sales. Cocoa prices have tripled over the past 12 months thanks to bean disease in West Africa, which continues to worsen, meaning companies are not expected to get relief anytime soon. Sugar prices are also up some 7%. Chocolate makers set their plans for this Easter last year, and have said they will hike prices again to cover the cocoa crunch. The companies face additional pressure on their profit margins as their hedges protecting commodity costs expire later this year and next. But, the price hikes are coming at a delicate time as inflation-weary consumers are already pushing back. That makes seasonal sales key. Easter sales of candy in the United States, the world's biggest chocolate consumer, are expected to at least reach last year's total of about $5.4 billion, although this will be driven mostly by price increases not volumes sold, according to the National Confectioners Association. Easter is the third-biggest occasion in the United States for buying chocolate and candies, with Halloween taking the top spot, followed by the winter holidays, according to the confectioners association. “People will buy during the holidays, but they will cut out impulse buying," through the year, said David Branch, a sector manager focusing on cocoa at Wells Fargo Agri-Food Institute. Data from the National Confectioners Association shows that last year, the volume of chocolate and candy sold for everyday occasions fell 3.6% compared to 2022. Volumes of chocolate and candy sold for seasonal occasions like Easter rose slightly by 0.1%. Branch projects that given the continued inflation in cocoa, the trend will continue. Hershey is shipping more non-cocoa treats to retailers this Easter in addition to its iconic Reese's chocolate bunnies and eggs. It is introducing a new six-pack of cookies 'n' cream bunnies, offering full-sized Kit Kat lemon crisp bars and mixing Haribo gummy bears with chocolate bars in its assortment bags. Hershey spokesperson Allison Kleinfelter said consumers are continuing to buy seasonal products because parents want to preserve traditions like Easter baskets filled with chocolate bunnies and egg hunts. The non-chocolate Easter offerings have no connection to current cocoa prices, she added. Simon Crowther, marketing director for seasonal confectionery UK at Mondelez told Reuters the Oreo cookie-maker has introduced a new “Cadbury Ultimate Egg” range, and a premium Toblerone "Edgy Egg,” aimed at older families and upmarket shoppers who may be more willing to splurge on chocolate. PUSHING INVENTORY U.S. retailers have increased discounts on Cadbury, Reese's, Hershey's, M&Ms and Lindt this Easter versus last, according to research analytics firm Dataweave. Big box store Target (TGT.N) , opens new tab and supermarket chain Kroger (KR.N) , opens new tab are also offering bigger discounts on Easter candy this year compared to last, according to the firm. At Target in New York in early March, Reese's mini eggs unwrapped, another new product for this season, and bunnies were buy one, get one for 50%. A Kroger spokesperson said the grocer updated its strategy to include more frequent promotions on top-selling brand and pack sizes. John Ament, an independent consultant and former global vice president of cocoa at M&Ms maker Mars, said there is no doubt that chocolate will be more heavily discounted this Easter compared to last because consumers are weary of price increases. Chocolate makers have already pushed through price increases, "So this Easter will be more expensive than last year, and there's less consumer appetite to spend," he said. He added that this year's holiday will be tougher than 2023's because of the hikes. "The category will see slower if any growth in the coming year," he said. Chocolate firms tend to hedge their raw material purchases up to 12 months in advance, and with the bulk of the cocoa price surge happening this quarter, current chocolate making costs will come to be seen as low at the end of the year. Even so, it's getting tougher to push through price hikes. Data from NielsenIQ shows the price per unit of chocolate in the U.S. rose 10.4% in the year to early March, versus a 14.3% gain in the same period a year earlier. A Mondelez' spokesperson told Reuters that as input costs rise this year, the company will consider not just price hikes but "changing the unit weights" of its chocolates - a technique commonly known as "shrinkflation." “We’ve had a couple of years now of strong price increases in chocolate and you tend to find in the first year, the elasticity is okay, in the second year it gets worse, and now we're in a third year, its going to be awful,” said Kepler Cheuvreux analyst Jon Cox. He said premium chocolate makers like Lindt (LISN.S) , opens new tab will likely fare better because the already high mark-up on their chocolate means they might be able to hike prices less, in percentage terms, than regular chocolate makers. But he added: "Even they will see sales volume pressure, its not going to be an easy year for them." Mass-market chocolatiers like Mondelez are also more likely to invest in brands not tied to cocoa, consultant Ament said. The Chicago-based company also sells crackers, cookies and other snacks. 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/hershey-mondelez-bet-big-easter-cocoa-price-crisis-looms-2024-03-26/

2024-03-26 11:37

March 26 (Reuters) - BlackRock (BLK.N) , opens new tab CEO Larry Fink on Tuesday urged the government and the private sector to ensure Americans have enough money to retire and said the world's largest asset manager would launch a product next month to address the issue. The "LifePath Paycheck" will go live in April, with 14 retirement plan sponsors aiming to make it available for 500,000 employees as defined contribution plans. "America needs an organized, high-level effort to ensure that future generations can live out their final years with dignity," Fink said in his annual letter to investors. BlackRock, which had over $10 trillion in total assets under management at the end of last year, oversees the largest retirement funds in the U.S. Fink said data from the U.S. Census Bureau's survey of consumer finances in 2022 showed nearly half of Americans aged 55 to 65 reported not having a single dollar saved in personal retirement accounts. "Put simply, the shift from defined benefit to defined contribution has been, for most people, a shift from financial certainty to financial uncertainty," he added. Fink also addressed climate transition as a major economic trend with a focus on "energy security" and said net-zero remains a top investment priority for most BlackRock clients. Climate awareness and investor interest in sustainable business practices have surged in recent years, forcing money managers to factor in environmental, social, and governance (ESG) policies as impact-investing gains momentum. "I started writing about the transition in 2020. Since then, the issue has become more contentious in the U.S," he said. BlackRock's ESG policies continue to be a topic of discord, particularly in Republican states. Earlier this month, a Texas school fund terminated its contract with BlackRock to manage around $8.5 billion of state money, accusing the company of boycotting fossil fuel energy producers. BlackRock had urged the fund's administrator to reconsider. 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/business/finance/blackrocks-fink-talks-us-retirement-crisis-announces-lifepath-paycheck-launch-2024-03-26/

2024-03-26 11:27

MUMBAI, March 26 (Reuters) - India's central bank will continue to curb sharp swings in the rupee, traders said, after it fell to a record low on Friday, spurring speculation the Reserve Bank of India (RBI) may be loosening its grip on the currency. Persistent intervention by the RBI in the foreign exchange market over the past several months had dampened exchange rate volatility. Friday’s sharp decline caught traders by surprise as the rupee fell to an all-time low of 83.43 against the dollar in the closing minutes of domestic trading. While the RBI had intervened earlier in the session, its absence towards the end pushed the rupee to record lows, a senior foreign exchange trader at a state-run bank said. Traders quoted in the story declined to be named because they are not authorised to speak to the media. Despite Friday's decline, "don't think the RBI will allow runaway depreciation on the rupee", Mandar Pitale, head of treasury at SBM Bank India, said. On Monday, the rupee rose nearly 0.2%, aided by central bank intervention, to settle at 83.28. SBM Bank's Pitale expects it to hover between 83.15 and 83.35 this week. The RBI's intervention seems to have "cooled the pair", a foreign exchange trader at a private bank said, predicting a tight range over the next few sessions. Friday's unexpected fall, which was the worst since September 2023, surprised the market which saw a rangebound rupee and slight gains in a year's time, as reflected in a March Reuters poll. Weakness in the offshore Chinese yuan and dollar outflows hit the rupee last week, and a lumpy outflow in the last two-three minutes pushed it past previous lows on Friday, a trader at a foreign bank said. The decline was worse in the offshore non-deliverable forwards (NDF) market, where the one-month NDF hit 83.79, implying a spot rate of around 83.73 to the dollar. "The move post onshore close on Friday was offshore reducing their long INR bets," a senior foreign exchange trader at a foreign bank said. The RBI's intervention, seen on Monday, is likely to guide the market going ahead, the trader said. Get a look at the day ahead in Asian and global markets with the Morning Bid Asia newsletter. Sign up here. https://www.reuters.com/markets/asia/india-cenbank-limit-sharp-swings-rupee-after-slip-record-low-traders-say-2024-03-26/

2024-03-26 11:20

TOKYO, March 26 (Reuters) - Japan's Ministry of Finance has set up a panel of experts to look at ways to improve the country's current accounts after income gains from past Japanese investment overseas replaced its once mighty export engine as the main contributor to finances. Japan's balance of payments has undergone "big structural changes," said Masato Kanda, the vice finance minister for international affairs. Since around 2010, income gains have overtaken the trade surplus as a key driver of Japan's current account surplus. Kanda, who is the country's top currency diplomat, kicked off a debate on the panel, which comprises of 20 private-sector experts, ranging from professors and economists to strategists. "However, currencies are not within the scope for discussion at this panel," Kanda told reporters after the meeting. The panel discussed trade deficits and shortfalls in digital and R&D, as well as what measures Japan should take to become more competitive in this new area. The panel is due to hold several more meetings before compiling proposals around June for improving the balance of payments and for better ways to earn and invest, particularly at home. The worsening in the service account deficit is an important issue when considering the future of the current account, but the trade deficit and slumping domestic investment is a bigger issue and must be provided with targeted support, Kanda said. As companies shift production abroad, income gains increase, only to be reinvested overseas, while causing domestic investment in human resources and innovation to stall. Get a look at the day ahead in Asian and global markets with the Morning Bid Asia newsletter. Sign up here. https://www.reuters.com/markets/asia/japan-establishes-panel-review-current-accounts-2024-03-26/