2024-03-22 05:13
MUMBAI, March 22 (Reuters) - India has rejected a proposal by miner Hindustan Zinc (HZNC.NS) , opens new tab to split the company into different units, a government source aware of the matter said on Friday. The Indian government is the largest minority shareholder in Hindustan Zinc, owning a 29.54% stake, but was not consulted by the company when it decided to split the firm to create separate entities for its zinc, lead, silver and recycling business, the government source said requesting anonymity. Hindustan Zinc had said the plan would unlock "potential value" of the company, but the government official said it was unlikely to create value for shareholders. The Ministry of Mines, that administers Hindustan Zinc, has communicated to the company about its objection, according to the source. The government's mines ministry, finance ministry and Hindustan Zinc did not immediately respond to requests for comment. In March, the government had opposed another proposal of Hindustan Zinc to buy two Vedanta (VDAN.NS) , opens new tab entities. It had written to the market regulator underscoring its opposition, and the company dropped the plan. Vedanta has a 64.9% stake in Hindustan Zinc. 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/indian-government-rejects-hindustan-zincs-plan-split-company-source-says-2024-03-22/
2024-03-22 04:07
SHANGHAI, March 22 (Reuters) - China's yuan declined to a four-month low against the dollar on Friday, breaching a key threshold and prompting state-owned banks to step in to defend the currency. In the spot market, the onshore yuan fell to the weak side of the psychologically important 7.2 per dollar level to hit a low of 7.24, its softest since Nov. 17, 2023. Market sources told Reuters that state banks stepped in subsequently to buy the yuan for dollars. The yuan was at 7.2251 by midday, 257 pips softer than the previous late session close. The sources declined to be identified because they are not authorised to speak publicly about market trades. The yuan has fallen more than 2% in three months, and has been pressured by growing market expectations of further monetary easing to prop up the world's second-largest economy as well as a weaker Japanese yen . Carlos Casanova, senior economist for Asia at UBP, said the strengthening dollar and sharp depreciation in the yen and some Asian currencies after the Bank of Japan ended its negative interest rate policy, have weighed on the yuan. "The market seems to have interpreted Asian currencies should depreciate further against the U.S. dollar until the D-day of interest rate cuts by the Fed," he said. Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate , around which the yuan is allowed to trade in a 2% band, at 7.1004 per dollar, 62 pips weaker than the previous fix of 7.0942. The Chinese central bank has for months been setting the rate at levels firmer than market projections, traders said. Friday's midpoint was 1,143 pips firmer than a Reuters estimate of 7.2147, the biggest discrepancy since November. The offshore yuan meanwhile continued to weaken to hit a more than four-month low of 7.2525. Traders attributed sudden weakness in the yuan to rising monetary easing expectations after senior PBOC officials hinted at there being further room to reduce bank reserve requirements. China has room to further cut banks' reserve requirement ratio (RRR), among other policy tools at its disposal, a deputy central bank head said on Thursday, underlining market expectations for more easing measures to bolster the economy. Ju Wang, head of Greater China FX and rates strategy at BNP Paribas, expects the central bank's message on further monetary easing will cause the yuan to test lows around 7.3 again. The yuan's sudden weakness weighed on stock markets too, with the benchmark Shanghai stock index (.SSEC) , opens new tab down 1.4%. If there are signs China is allowing the yuan to depreciate from 7.2 to 7.3, "it would definitely make it more difficult for this equity rally to continue, because a lot of people would try to diversify into U.S. dollar exposure," Casanova said. 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/china-yuan-drops-four-month-low-state-banks-step-2024-03-22/
2024-03-22 01:04
NEW YORK, March 21 (Reuters) - The U.S. Federal Trade Commission recommended Thursday that policymakers look further into profits at grocery store operators that remain elevated since the pandemic and promotions that consumer products makers offer retailers. The FTC also is suing to block Kroger's (KR.N) , opens new tab acquisition of smaller grocery store rival Albertsons, citing concerns the deal would hike prices for millions of Americans. The FTC launched the study in 2021 when it ordered Walmart (WMT.N) , opens new tab, Kroger, Procter & Gamble (PG.N) , opens new tab, grocery wholesalers and others to turn over detailed information relating to the supply chain crisis during the pandemic, which contributed to double-digit price increases on household necessities. Big box and chain stores secured limited resources, leaving small independent grocers at a disadvantage, FTC Chair Lina Khan said on a public call to discuss the report. This harmed communities reliant on these smaller retailers and could have also strengthened market dominance of larger corporations, she added. "If we end up finding that these types of practices violated any of the antitrust laws including the (Robinson) Patman act, I'll be very interested in making sure we take swift action," she said without providing details. The Robinson-Patman Act , opens new tab of 1936 is a U.S. antitrust law preventing large franchises and chains from engaging in price discrimination against small businesses. Several representatives of smaller grocery operators spoke on the call saying that during the pandemic, they faced shortages of toilet paper, cleaning products and pet supplies as manufacturers prioritized their biggest clients. "It was a true test of survival for a lot of our customers," said Brian Patterson, head buyer at Piggly Wiggly Alabama Distributing Co. Walmart and Kroger are among chains that have touted gaining U.S. grocery market share. Kroger's most recent quarterly statements said , opens new tab it improved volume share consistently for the past five quarters. Walmart said it gained market share in "virtually every category," citing its lower prices. Walmart and Kroger did grow share from 2018 to 2022, but only modestly, according to Coresight Research data. "A global pandemic is what caused stress to the supply chain, not the companies that the study selectively targeted," said Sean Heather, senior vice president for International Regulatory Affairs and Antitrust at the U.S. Chamber of Commerce, a business advocacy group. “It is no surprise that the Chamber values corporate profits more than everyday Americans’ pocketbooks," replied Douglas Farrar, FTC spokesman. BROAD INTEREST The FTC said it will pass the report onto lawmakers, "where there has been broad interest" from members of both parties. U.S. President Joe Biden has already taken aim at grocery chains this year. "Today’s FTC report shows grocery retailers increased profits during the pandemic and have maintained or increased those margins even as their own costs have come down," the White House said in an email to Reuters on Thursday. "President Biden knows grocery prices are still too high for hardworking families," it said. In Thursday's report, the FTC found that a measure of annual profits for food and beverage retailers "rose substantially and remains quite elevated." The commission said revenues for grocery retailers were 6% over total costs in 2021, and 7% in the first nine months of 2023, higher than a peak of 5.6% in 2015. "This casts doubt on assertions that rising prices at the grocery store are simply moving in lockstep with retailers’ own rising costs," the FTC said, adding that elevated profit levels "warrant further inquiry" by both policymakers and the commission, which is tasked with protecting the public from unfair business practices. The FTC also said trade promotions, payments by consumer goods companies to retailers for favorable product placement in stores and on e-commerce websites, "may warrant further study." The reduction in spending harmed traditional grocers that use a "high-low" pricing strategy with more frequent promotions, the FTC found. Retailers that offer "everyday low pricing" with fewer promotions, like Walmart, benefited, according to the study. Walmart did not immediately respond to a request for comment. Its stock price along with those of Procter & Gamble and Kroger closed flat to slightly up at day's close on Thursday. The FTC added that the report does not make claims of illegality. "We're shedding light on what we're seeing in the market, which has broader relevance to policymakers beyond law enforcement." 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/us-regulators-urge-congress-look-into-grocery-profits-2024-03-21/
2024-03-22 00:56
March 21 (Reuters) - The U.S. military on Thursday said it had destroyed two anti-ship ballistic missiles and an unmanned surface vessel launched by Houthis from Yemen. "It was determined these weapons presented an imminent threat to coalition and merchant vessels in the region," U.S. Central Command wrote on social media site X. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/world/middle-east/us-military-says-it-destroyed-ballistic-missiles-launched-by-houthis-2024-03-22/
2024-03-22 00:53
March 22 (Reuters) - Meta Platforms's (META.O) , opens new tab Instagram appeared to be back online for most users after an outage disrupted services for the photo-sharing platform for more than three hours on Thursday, according to Downdetector.com. The number of outages have come down to around 400 after more than 5,000 users reported issues with accessing Instagram in the United States around 2230 GMT, data from the outage tracking website showed, which also cited that majority of the reported problems were regarding login issues on the app. Instagram and Facebook had an outage for more than two hours early in March that was caused by a technical issue, with more than 550,000 reports of disruptions for Facebook and about 92,000 for Instagram at its peak. Downdetector tracks outages by collating status reports from several sources, including user-submitted errors on its platform. Meta did not immediately respond to a Reuters request for comment. The Technology Roundup newsletter brings the latest news and trends straight to your inbox. Sign up here. https://www.reuters.com/technology/metas-instagram-down-thousands-downdetector-shows-2024-03-22/
2024-03-22 00:53
US says talks in Qatar could reach Gaza ceasefire agreement Russia attacks Ukrainian energy infrastructure overnight Speculators raise U.S. crude oil net longs-CFTC US oil rig counts falls by one to 509 this week, Baker Hughes says NEW YORK, March 22 (Reuters) - Oil prices slipped on Friday and were flat on the week as the possibility of a ceasefire in Gaza weakened crude benchmarks, while the war in Europe and shrinking U.S. rig count cushioned the fall. Brent futures for May delivery settled at $85.43, losing 35 cents. U.S. crude settled at $80.63 a barrel, falling 44 cents. Both benchmarks logged less a than 1% change on the week. "Everyone is watching for what the weekend will bring with Gaza," said John Kilduff, partner with Again Capital LLC, adding that successful peace talks would prompt Yemen's Houthi rebels to allow oil tankers to pass through the Red Sea. U.S. Secretary of State Antony Blinken said on Thursday he believed talks in Qatar could reach a Gaza ceasefire agreement between Israel and Hamas. Blinken met Arab foreign ministers and Egypt's President Abdel Fattah El-Sisi in Cairo as negotiators in Qatar centred on a truce of about six weeks. Meanwhile, the U.S. dollar was set for a second week of broad gains after the Swiss National Bank's surprise interest rate cut on Thursday bolstered global risk sentiment. A stronger dollar makes oil more expensive for investors holding other currencies, dampening demand. While a possible ceasefire meant crude might move more freely globally, a lower U.S. oil rig count and the potential for easing U.S. interest rates helped support prices. "We are still keeping fresh highs on the table given broad-based expansion in risk appetite that accelerated following the mid-week Fed comments that proved less hawkish than anticipated," said Houston-based Jim Ritterbusch, of Ritterbusch and Associates. U.S. equities, which tend to move in correlation with oil prices, hit record highs after the Federal Reserve ended its regular meeting with no change in U.S. rates on Wednesday. The U.S. oil rig count fell by one to 509 this week, according to Baker Hughes data, indicating lower future supply. Money managers, meanwhile, upped their net long U.S. crude futures and options positions last week, the U.S. Commodity Futures Trading Commission (CFTC) said, with combined futures and options positions in New York and London rising by 57,394 contracts to 202,624. The conflict in Eastern Europe also kept oil prices from moving lower. Russia launched the largest missile and drone attack on Ukrainian energy infrastructure of the war to date on Friday, hitting the country's largest dam and causing blackouts in several regions, Kyiv said. However, chatter has emerged within the market that Russia would further discount its barrels in light of the escalation, said Bob Yawger, director of energy futures at Mizuho. A steeper discount could make Russian crude more attractive to international buyers. 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/oil-prices-ease-gaza-ceasefire-possibility-dollar-strength-2024-03-22/
