2024-03-05 07:32

JAKARTA, March 5 (Reuters) - Indonesia's has approved the mining production quota requests from more than 120 mineral companies and aims to complete the approval process this month, a senior official at the Energy and Mineral Resources Ministry said on Tuesday. The approval process for the quotas, known locally as RKAB, has been delayed this year, raising concerns from nickel smelters who are facing depleting ore stock. Indonesia, a major producer of minerals such as nickel, tin, and copper, requires all mining companies to secure RKAB approvals periodically before they are allowed to conduct mining activities. "RKAB approvals for minerals are still on progress and the plan is to complete them by the end of March," said Irwandy Arif, special staff to the energy and mineral resources minister. A total of 723 mineral mining companies applied for quota approvals, Irwandy said. He did not provide the tonnage for the approved RKAB, nor the breakdown of each of the minerals. But he said the ministry has completed approvals for coal miners. However, Indonesia Mining Association Executive Director Djoko Widajatno estimated that around 259 million wet metric tons of production quota for nickel have been approved, he said in a text message on Tuesday. Last week, a director at the ministry said approvals have been issued for 145 million metric tons of nickel ore production this year, with approvals for more underway as authorities focused on processing requests for nickel and tin. https://www.reuters.com/markets/commodities/indonesia-aims-finish-mining-output-quotas-approval-by-end-march-official-says-2024-03-05/

2024-03-05 06:43

March 5 (Reuters) - Lindt & Spruengli (LISN.S) , opens new tab reported higher 2023 profit on Tuesday as the Swiss chocolate maker managed to pass on increasing raw material costs to customers amid a slowdown in the global chocolate market. The net income rose 17.9% to 671.4 million Swiss francs ($758 million) for the full year ended Dec. 31, slightly beating the 670 million francs forecast by analysts at Zuercher Kantonalbank. The manufacturer of Lindor balls and gold foil-wrapped Easter bunnies said it achieved an operating margin of 15.6% last year, up from 15% in 2022. In January, Lindt reported a 10.3% rise in 2023 organic sales, as the post-COVID recovery in travel generated demand for higher-value products such as pralines. It proposed an annual dividend of 1,400 francs per registered share, up from the 1,300 francs in the previous year. Lindt confirmed its 2024 guidance for organic growth of 6% to 8%, as well as an improvement in the operating margin of 20-40 basis points. ($1 = 0.8853 Swiss francs) https://www.reuters.com/business/retail-consumer/lindt-full-year-profit-rises-price-increases-2024-03-05/

2024-03-05 06:40

CANBERRA, March 5 (Reuters) - Wetter weather should boost Australia's winter wheat production to 28.4 million metric tons in the 2024/25 season from 26 million tons in the harvest that has just finished, the country's agriculture ministry said on Tuesday. Barley and canola production will also increase, the ministry said. Australia is one of the world's largest exporters of wheat and other farm products and greater output next year will increase global supply. The recently harvested 2023/24 winter crops were hit early in the growing season by an El Nino weather event that brought with it dry conditions. But summer rains in recent months and a fading El Nino have improved the outlook. "Good soil moisture bodes well," Emily Dahl, an economist in the agriculture ministry's forecasting division, told the ABARES Outlook 2024 conference in Canberra. The area planted to winter crops should increase in 2024/25, particularly in Queensland and New South Wales, which were dry for much of 2023, she said, adding that exports in the 2024/25 season would also be above the long term average. The ministry said it expected barley production to rise to 11.6 million tons in the 2024/25 season from 10.8 million in 2023/24 and for canola output to grow to 6.1 million tons from 5.7 million tons. Total winter crop production should rise by 9% to 51 million metric tons in 2024/25, the ministry estimates. Winter crops in Australia are planted from around April and harvested from around October. Some weather models are predicting that El Nino will not only fade but shift later this year back to a La Nina phenomenon, which typically brings wetter conditions to Australia. Dahl said this could lift Australian yields further. "There's certainly a lot of upside potential," she said. The agriculture ministry said on Tuesday that Australia's 2023/24 winter crop was in line with the 10-year average but down 32% from 2022/23, a La Nina year that saw plentiful rain. https://www.reuters.com/world/asia-pacific/australia-says-wetter-weather-should-boost-its-upcoming-winter-crop-2024-03-05/

2024-03-05 06:31

NEW YORK, March 5 (Reuters) - The dollar edged down against a basket of currencies on Tuesday after data showed U.S. services industry growth eased and as investors braced for a busy week that includes a European Central Bank rate decision, congressional testimony from Federal Reserve Chair Jerome Powell and U.S. jobs data. Bitcoin hit a record high on Tuesday before retreating sharply in a volatile session. The world's largest cryptocurrency is up nearly 50% this year, fueled by investors pouring money into U.S. spot exchange-traded crypto products and the prospect that global interest rates may fall. Bitcoin was last down 7.04 % to $ 62,745.23 , after rising as high as $ 69,202 . U.S. services industry growth slowed a bit in February amid a decline in employment, according to the Institute for Supply Management (ISM). Separately, data showed new orders for U.S.-manufactured goods dropped more than expected in January. "The ISM numbers today showed growth in the service sector slowed in February, in no small part due to a decline in employment levels, and that has raised some concerns about the strength of the U.S. economy," said Stuart Cole, chief economist at Equiti Capital. The dollar index , which measures the buck against six major peers, was down 0.04% to 103.8. Most major currency pairs traded in familiar ranges. "The G10 FX world remains incredibly subdued," said Michael Brown, market analyst at online broker Pepperstone in London. "There's some reluctance from most market participants to trade with conviction ahead of Powell tomorrow, ECB on Thursday, and of course NFP (nonfarm payrolls) on Friday, which is probably exacerbating the quiet conditions at the start of the week," he said. The dollar index , which measures the buck's strength against a basket of six currencies, is up about 2.3% for the year, lifted by better-than-expected U.S. economic data, but the currency's rally has stalled in recent sessions, as investors await clarity on Fed policy. Chair Powell is likely to reinforce the message that the Fed wants to wait for more data before any rate cuts when he testifies to Congress about inflation and the economy on Wednesday and Thursday. "We should expect Fed Chair Powell to reiterate patience and emphasize (there is) no hurry to cut rates," said Christopher Wong, currency strategist at OCBC in Singapore. The ECB meets to discuss policy on Thursday but is widely expected to leave interest rates at a record 4%. Investors will be on the lookout for any hints about when rates might start to fall and will scrutinize updated economic projections. Survey data on Tuesday showed that business activity in the euro zone showed signs of recovery last month. The euro was 0.04% lower against the dollar at $1.08515. U.S. employment figures for February have the potential to rock markets on Friday. Economists expect hiring slowed last month, but a bigger-than-expected number could add to the dollar's rise this year. Meanwhile, news out of China's National People's Congress contained few surprises, with Beijing sticking with an economic growth target of 5% and a budget deficit of 3%. Analysts at Nomura said the growth target will be challenging to meet without more stimulus. The offshore yuan was little changed at $ 7.2117 . The dollar slipped 0.4% against the yen to 149.925, retreating further from last week's high of 150.85. A break higher would open the way to November's top at 151.92, but would also run the risk of provoking Japanese intervention. Sterling rose 0.09% to $1.2702 ahead of the British budget on Wednesday. Finance Minister Jeremy Hunt has been trying to dampen speculation about big pre-election tax cuts. https://www.reuters.com/markets/currencies/dollar-spectator-china-news-yen-ponders-rate-risks-2024-03-05/

2024-03-05 06:11

NEW YORK, March 5 (Reuters) - Wall Street stocks closed sharply lower on Tuesday while bitcoin and gold touched all-time highs as market participants eyed upcoming economic data and central bank actions. All three major U.S. stock indexes fell 1% or more on the day, with the tech-laden Nasdaq suffering the steepest loss. "This seems to be a day when bad news is bad news," said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management in Minneapolis. "We had sluggish data. It's more about concerns about a slowing economy, and less about how many times the Fed will cut interest rates this year." Despite the risk-averse sentiment among stock investors, bitcoin touched, and then backed away from, a record high. The cryptocurrency was last off 7.6% on the day at $62,380. "You've had this big run in stocks, and investors are looking to put their money into some other areas where they think they can generate some cash," said Chuck Carlson, CEO of Horizon Investment Services in Hammond, Indiana. Gold also reached an all-time high, powered by interest rate cut expectations. "We can draw the line from weaker economic data to higher expectations that the Fed will cut interest rates to less support for the dollar, which, in turn supports gold," Hainlin added. Economic data showed a waning expansion of the U.S. services sector, and a steeper-than-expected drop in new factory orders. The Dow Jones Industrial Average (.DJI) , opens new tab fell 404.64 points, or 1.04%, to 38,585.19, the S&P 500 (.SPX) , opens new tab lost 52.3 points, or 1.02%, to 5,078.65 and the Nasdaq Composite (.IXIC) , opens new tab dropped 267.92 points, or 1.65%, to 15,939.59. European shares ended lower after moves by China to stimulate its economy failed to impress investors, who grew cautious ahead of euro zone and U.S. economic data, as well as a policy decision from the European Central Bank. The pan-European STOXX 600 index (.STOXX) , opens new tab lost 0.23% and MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab shed 0.79%. Emerging market stocks lost 0.89%. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) , opens new tab closed 0.95% lower, while Japan's Nikkei (.N225) , opens new tab lost 0.03%. The dollar inched lower against a basket of world currencies after the weaker-than-expected U.S. economic data. The dollar index (.DXY) , opens new tab fell 0.07%, with the euro up 0.03% to $1.0857. The Japanese yen strengthened 0.39% versus the greenback to 149.95 per dollar, while Sterling was last trading at $1.2706, up 0.13% on the day. Benchmark 10-year U.S. Treasury yields fell to a one-month low in following the softer-than-expected services sector data as investors prepared for Friday's employment report. Benchmark 10-year notes last rose 21/32 in price to yield 4.137%, from 4.219% late on Monday. The 30-year bond last rose 43/32 in price to yield 4.275%, from 4.355% late on Monday. Oil prices softened on skepticism over China's economic growth plan ahead of the latest weekly of U.S. crude inventory reports. U.S. crude dropped 0.75% to settle at $78.15 per barrel, while Brent settled at $82.04, down 0.92% on the day. Gold touched an all-time high as market participants solidified their bets that the Fed will begin lowering its key policy rate in June. Spot gold added 0.7% to $2,129.54 an ounce. https://www.reuters.com/markets/global-markets-wrapup-1-2024-03-05/

2024-03-05 06:09

LONDON, March 5 (Reuters) - Sterling's meandering performance against the dollar could get a jolt this week as Britain's finance minister faces pressure to cut taxes, but with the gilt turmoil of September 2022 still fresh in the mind, prudence may be the order of the day. The pound has traded in a narrow $1.2501-$1.2825 range against the dollar since the middle of November, while volatility is close to its lowest since February 2020, just before the COVID-19 pandemic struck markets. But Jeremy Hunt's Spring Budget on Wednesday might cause sterling to stir, as the ruling Conservative Party's hoped-for fiscal space that was meant to bring large tax cuts before a probable 2024 election might be less than previously thought. Britain's economy fell into recession in the final quarter of 2023, while the market's repricing of Bank of England (BoE) rate cuts has seen borrowing rates move higher in recent weeks, limiting Hunt's fiscal headroom. "We don't have as much of a positive outlook as we had at the end of the Autumn Statement," Hunt told the Sunday Telegraph. And with former Prime Minister Liz Truss's disastrous mini-budget not yet out of the rear-view mirror, markets are acutely aware of what can happen when the government promises sweeping, unfunded tax cuts. Britain's gilt market went into a tailspin 18 months ago, prompting intervention from the BoE, while the pound slumped to a record low against the dollar. SCOPE FOR A SURPRISE? Analysts are not expecting the same from Hunt, but admit that the scope for a surprise should not be ruled out. "A moderately-sized tax relief package (i.e., one that does not trigger gilts turmoil) can probably give some support to GBP this week," said ING's Francesco Pesole, "but the spectrum of possibilities is admittedly quite wide." That said, the likelihood of the budget being a game-changer for either the growth or the inflation outlook remains slim given the fiscal constraints. Markets currently see the BoE starting to cut interest rates in August, with only 62 basis points (bps) of easing priced this year, implying two, maybe three, quarter-point cuts in 2024. The Federal Reserve and the European Central Bank, meanwhile, are both seen delivering around 90 bps of easing this year, or at least three 25 bps rate cuts, possibly four. Higher British interest rates - only the Fed and Reserve Bank of New Zealand have higher policy rates in the G10 - and expectations that they will stay at elevated levels for longer, should be a fruitful mix for sterling bulls. And that's why sterling is the only major currency that has kept pace with the rampant dollar this year, where the economy has defied the Fed's aggressive tightening of the last two years and continued to grow at a robust pace. The Fed's Chair Jerome Powell delivers his semi-annual testimony to Congress this week, the ECB announces its latest policy decision on Thursday and U.S. payrolls are due on Friday, meaning there is plenty that could shake sterling awake. https://www.reuters.com/markets/europe/spring-budget-may-awaken-sterling-hibernation-2024-03-05/