2024-03-25 20:20
Nvidia, Micron Tech help buoy Nasdaq Walt Disney gains after Barclays upgrade Boeing CEO to step down in shakeup amid safety crisis; shares up Indexes down: Dow 0.41%, S&P 500 0.31%, Nasdaq 0.27% NEW YORK, March 25 (Reuters) - The Dow and S&P 500 slipped on Monday, the first session after the biggest weekly percentage gains for the indexes this year, as investors gauged the likely path of interest rates from the Federal Reserve ahead of key inflation data due later in this holiday-shortened week. Last week, the Fed maintained its guidance for three interest-rate cuts this year, and the S&P 500 and Dow had strong gains while the Nasdaq notched its biggest weekly percentage gain since mid-January. On Monday, Chicago Fed President Austan Goolsbee said he had penciled in three rate cuts for this year, while Fed Governor Lisa Cook said the central bank needs to proceed with caution as it decides when to start cutting interest rates. "It's a breather, the market has held really well, so people are waiting, there’s a lot of people waiting for that pullback," said Joe Saluzzi, partner, co-founder and co-head of equity trading at Themis Trading in Chatham, New Jersey. "What the Fed did was give the all clear for now, it's really interesting what they are doing. They're not cutting anything yet they just keep delaying it and the market is fine with that... but they're doing a good job right now of saving the bullets for when they need them." The Dow Jones Industrial Average (.DJI) , opens new tab fell 162.13 points, or 0.41%, to 39,313.77, the S&P 500 (.SPX) , opens new tab lost 15.97 points, or 0.31%, to 5,218.21 and the Nasdaq Composite (.IXIC) , opens new tab lost 44.35 points, or 0.27%, to 16,384.47. Economic data showed sales of new U.S. single-family homes fell unexpectedly in February after mortgage rates increased during the month. The underlying trend remained strong with a chronic shortage of previously owned houses on the market. The Nasdaq held closer to unchanged for most of the session before fading late, as gains in chipmakers Nvidia and Micron Technology provided support. Nvidia rose 0.76% while Micron Technology surged 6.28% to a closing record of $117.04. Semiconductor shares were choppy, showing initial weakness after a report over the weekend said China had introduced guidelines to phase out U.S. microprocessors supplied by Intel (INTC.O) , opens new tab and AMD (AMD.O) , opens new tab from government personal computers and servers. The Philadelphia Semiconductor Index (.SOX) , opens new tab ended 0.34% lower, after alternating between gains and losses during the session. Intel ended down 1.74% and AMD closed 0.57% lower. Expectations for a Fed rate cut in June were again increasing, with markets now pricing in a 71.9% chance for a cut of at least 25 basis points (bps), according to CME'sFedWatch Tool , opens new tab, up from around 54.7% a week ago. The February reading of the Personal Consumption Expenditures (PCE) price index, the Fed's preferred inflation gauge, is due on Friday, when U.S. markets will be closed for the Good Friday holiday. A strong reading could jolt market expectations about the timing of a rate cut. Boeing (BA.N) , opens new tab rose 1.36% after announcing a broad management shakeup and said CEO Dave Calhoun would step down from his position at the end of 2024. But the planemaker finished off session highs. Walt Disney (DIS.N) , opens new tab advanced 3.01% as the best performer on the Dow after Barclays upgraded the stock to "overweight" from "equal weight". On the NYSE declining issues outnumbered advancing ones by a 1.4-to-1 ratio. On the Nasdaq, declining issues outnumbered advancers by about a 1.4-to-1 ratio. The S&P 500 posted 31 new 52-week highs and 2 new lows while the Nasdaq recorded 113 new highs and 110 new lows. Volume on U.S. exchanges was 9.67 billion shares, compared with the 12.27 billion average for the full session over the last 20 trading days. 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/futures-ease-start-holiday-shortened-week-2024-03-25/
2024-03-25 20:05
TRIPOLI, March 25 (Reuters) - Libya's oil and gas minister in the Government of National Unity has been temporarily suspended from work, a state institution said on Monday, citing a legal investigation. The Administrative Control Agency (ACA) said on its verified Facebook page that its head Abdullah Qadirbuh issued the suspension decision against the oil and gas minister in Tripoli for the investigation "regarding the facts of case No.178, which revealed the presence of legal violations". It did not disclose further details. The oil ministry has not received a copy of the decision yet, a source at the ministry told Reuters. The ACA mentioned the title of the minister and referred to him in a short statement with only the three initials of his full name. The agency, which is mandated to oversee government performance, has powers including to challenge appointments to public positions and to enhance public accountability. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/world/africa/libyas-oil-minister-suspended-legal-investigation-2024-03-25/
2024-03-25 19:23
EU countries cancel vote to pass nature policy Hungary withdraws support for law, thwarting vote EU warns dropping law 'disastrous' for bloc's credibility BRUSSELS, March 25 (Reuters) - The European Union's flagship policy to restore damaged nature is hanging in the balance, with a vote to pass the law on Monday cancelled after Hungary unexpectedly withdrew its support for the bill. The vote, scheduled to take place at a meeting of EU countries' environment ministers in Brussels, was called off after Hungary said it would no longer back the policy - wiping out the already-slim majority of countries in favour and leaving ministers struggling to decide their next steps. The nature law is the latest EU environmental policy to come under fire as policymakers try to respond to months of angry farmers' protests over complaints including strict green EU regulations. The EU has already weakened numerous green rules to attempt to quell the protests. "The agricultural sector is a very important sector, not only in Hungary, but everywhere in Europe," Hungary's state secretary for environment Aniko Raisz told reporters. She said Hungary's concerns included the costs. Alain Maron, the Belgian environment minister who chaired Monday's talks, said negotiations would continue but it was not clear what changes to the law could win over opponents. "We don't know exactly what are some reasons to be against this law for certain countries... it's possible that they change their mind," he told a press conference. The law would be among the EU's biggest environmental policies, requiring countries to introduce measures restoring nature on a fifth of their land and sea by 2030. Cancelling a policy at this late stage of EU lawmaking is highly unusual. Some EU diplomats said countries had already watered down the law during negotiations, and suggested Budapest's opposition was purely political, rather than over a specific policy issue. EU environment commissioner Virginijus Sinkevicius said shelving the law would send a "disastrous signal" about the EU's credibility, especially after the bloc pushed other countries in U.N. negotiations to back stronger targets to protect nature. "We are fooling ourselves if we pretend that we can win our fight against climate change without nature," Sinkevicius said. Opposed to it are Hungary, Italy, the Netherlands and Sweden. Austria, Belgium, Finland and Poland intend to abstain in the vote. Any one of those eight countries changing position could allow the law to pass. The rest of the EU's 27 member states support the policy. Spanish climate minister Teresa Ribera said it would be a "huge irresponsibility" to reduce efforts to tackle worsening nature loss and climate change. The law's aim is to turn around the 81% of Europe's natural habitats that are classed as in poor condition. But the policy has faced a backlash from some governments and lawmakers concerned it would impose burdensome rules on farmers, or clash with other industries. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/world/europe/eu-countries-split-over-nature-law-latest-blow-green-agenda-2024-03-25/
2024-03-25 19:12
Canadian dollar strengthens 0.2% against the greenback Price of U.S. oil settles 1.6% higher Canadian bond yields rise across the curve TORONTO, March 25 (Reuters) - The Canadian dollar edged higher against its U.S. counterpart on Monday but was holding near its weakest level in more than three months as the U.S. Federal Reserve officials signaled increased concern about the slow progress in cooling inflation. The loonie was trading 0.2% higher at 1.3580 to the U.S. dollar, or 74.21 U.S. cents. On Friday, the currency touched its weakest intraday level since Dec. 12 at 1.3614 as the greenback extended recent gains against a basket of major currencies. "The U.S. dollar is maintaining its strength," said Darren Richardson, chief operating officer at Richardson International Currency Exchange Inc. "The main focus for the market is sticky or stubborn inflation pressures which are tying the hands of the Fed." Fed officials said they still had faith that U.S. inflation will ease, with housing price increases in particular expected to help pull down the headline pace of price increases, but also acknowledged an increased sense of caution around the issue. U.S. inflation data, due for release on Friday, could guide expectations for the Fed to begin cutting interest rates in the coming months. "Oil continues to strengthen gradually which normally would be a big support to the loonie but at the moment the market is not focusing on that as much as inflationary stories," Richardson said. The price of oil , one of Canada's major exports, settled 1.6% higher at $81.95 a barrel as orders from the Russian government to curb oil output, and attacks on energy infrastructure in both Russia and Ukraine offset the United Nation's demand for a ceasefire in the Gaza war. Canadian government bond yields moved higher across the curve, tracking moves in U.S. Treasuries. The 10-year was up 5.3 basis points at 3.489%. 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/c-holds-near-3-month-low-investors-eye-sticky-us-inflation-2024-03-25/
2024-03-25 18:48
FRANKFURT, March 25 (Reuters) - German train drivers' union GDL said on Monday it had struck a wage deal with rail operator Deutsche Bahn, after months of disputes and strikes. GDL said in a statement it had reached a collective bargaining agreement with Deutsche Bahn and would hold a news conference at 1030 GMT on Tuesday in Berlin. In a separate statement, Deutsche Bahn said it would hold a news conference "on the current state of wage talks" at 0900 GMT on Tuesday, also in Berlin. Both sides resumed negotiations in mid-March following six rounds of strike action, in one of the longest-running wage disputes in Deutsche Bahn's history. GDL had demanded a reduction in weekly working hours to 35 at full pay. Germany has been hit by a wave of industrial action in recent months, as high inflation and staff bottlenecks soured wage negotiations in the transport sector, affecting national rail, air travel and public transport. Stay up to date with the latest news, trends and innovations that are driving the global automotive industry with the Reuters Auto File newsletter. Sign up here. https://www.reuters.com/business/autos-transportation/german-train-drivers-say-they-have-wage-deal-with-deutsche-bahn-2024-03-25/
2024-03-25 18:46
LONDON, March 25 (Reuters) - Global bank messaging network SWIFT is planning a new platform in the next one to two years to connect the wave of central bank digital currencies now in development to the existing finance system, it has told Reuters. The move, which would be one of the most significant yet for the nascent CBDC ecosystem given SWIFT's key role in global banking, is likely to be fine-tuned to when the first major ones are launched. Around 90% of the world's central banks are now exploring digital versions of their currencies. Most don't want to be left behind by bitcoin and other cryptocurrencies, but are grappling with technological complexities. SWIFT's head of innovation, Nick Kerigan, said its latest trial, which took 6 months and involved a 38-member group of central banks, commercial banks and settlement platforms, had been one of the largest global collaborations on CBDCs and "tokenised" assets to date. It focused on ensuring different countries' CBDCs can all be used together even if built on different underlying technologies, or "protocols", thereby reducing payment system fragmentation risks. It also showed they could be used in highly complex trade or foreign exchange payments and potentially be automated so to both speed up and lower the costs of the processes. Kerigan said the results, which had also proven banks could use their existing infrastructure, had been widely regarded as a success by those who took part and given SWIFT a timeline to work to. "We are looking at a roadmap to productize (launch as a product) in the next 12-24 months," Kerigan said in an interview. "It's moving out of experimental stage towards something that is becoming a reality." Although the timeframe could still shift if major economy CBDC launches get delayed, getting out the blocks for when they do would be a major boost for maintaining SWIFT's incumbent dominance in the bank-to-bank plumbing network. Countries such as the Bahamas, Nigeria and Jamaica already have CBDCs up and running. China is well advanced with real-life trials of an e-yuan. The European Central Bank has digital euro one underway too, while the Bank for International Settlements, the global central bank umbrella group, is running multiple cross-border trials. SWIFT's main advantage though is that its existing network is already usable in over 200 countries and connects more than 11,500 banks and funds who use it to send trillions of dollars every day. SCALABLE OPTION The firm has gone from being virtually unknown outside banking circles to a household name since 2022 when it cut most of Russia's banks off from its network as part of the West's sanctions for the invasion of Ukraine. Kerigan said that kind of move could still happen in a new CBDC system, but doubted whether it would stop countries from joining one. Its latest trial involved central banks from Germany, France, Australia, Singapore, Czech Republic and Thailand as well as a number that requested to remain anonymous. A raft of heavyweight commercial banks including HSBC, Citibank, Deutsche Bank, Societe Generale, Standard Chartered and the CLS FX settlement platform all took part too, as did at least two banks from China. The idea is that once the interlink solution is scaled-up, banks would have one main global connection point able to handle digital asset payments, rather than thousands if they were to set up an individual one with every counterparty. As well as the advance towards CBDCs, Kerigan pointed to a forecast from Boston Consulting Group (BCG) that by 2030 around $16 trillion worth of assets could be "tokenised" - a process where assets like stocks and bonds are transformed into digital chips that can then be issued and traded in real-time. "If we can plug in any number of networks (into the SWIFT system) it becomes a much more scalable option for the industry," 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/business/finance/swift-planning-launch-new-central-bank-digital-currency-platform-12-24-months-2024-03-25/
