2024-02-19 07:09
Feb 19 (Reuters) - Veolia (VIE.PA) , opens new tab has agreed to buy a 430-megawatt, gas-fired power plant in Hungary from German energy firm Uniper (UN0k.DE) , opens new tab, the French utility said on Monday. The gas-fired, combined-cycle power plant is in Gönyű, north-west Hungary. It helps to provide flexible electricity generation capacity, which is crucial as more intermittent renewable capacity comes online and European countries need flexible baseload capacity that can come on or offline quickly to balance their grids, Veolia said. "This agreement is right in line with our ambitions to develop flexibility capacities, an essential complement to the stability of the European power grid," said Estelle Brachlianoff, Veolia's chief executive officer. Financial details were not disclosed. The purchase agreement was done via Veolia's Hungarian subsidiary and the transaction is subject to obtaining the necessary authorisations and complying with regulations, the firm added. https://www.reuters.com/markets/deals/veolia-agrees-buy-hungarian-gas-fired-power-plant-uniper-2024-02-19/
2024-02-19 06:54
Feb 19 (Reuters) - Anglo American Platinum (AMSJ.J) , opens new tab said on Monday it plans to cut thousands of jobs at its mines in South Africa after its profits plunged by 71% last year. The Anglo American (AAL.L) , opens new tab unit said in a statement that it is embarking on a restructuring that could affect about 3,700 jobs at its South African operations as it battles to keep the lid on costs amid falling platinum-group metals prices. The miner is also reviewing contracts with 620 service providers, Amplats said. The restructuring decision "has not been taken lightly" Craig Miller, the chief executive officer. "It's very much a last resort, not least as we recognise the unemployment challenges in South Africa and the socio-economic impact that the proposed restructuring may have on our people and the communities we are part of," Miller said on a conference call. The Johannesburg-based firm said its profit slumped to 14 billion rand ($741.81 million) in the year ended Dec.31 compared to 48.8 billion rand the previous year. Amplats slashed its dividend by 81%, to 21.30 rand per share. Still, Amplats said the payout is within its ratio of 40% of headline earnings. The prices of palladium and rhodium fell 37% and 58% in the year, respectively. Amplats' South African peers including Sibanye Stillwater have also announced plans to cut jobs due to the fall in metal prices. Anglo American CEO Duncan Wanblad, told Reuters on Feb.5 that the group was considering deeper cost-cutting measures if market conditions did not improve. In December, Anglo American has announced sweeping cuts to save about $1.8 billion by 2026. As part of the cost-cutting measures, Amplats is postponing planned projects at its Amandelbult complex, it said. ($1 = 18.8727 rand) (This story has been refiled to remove the duplicated word 'cuts' in the headline) https://www.reuters.com/markets/commodities/amplats-says-restructuring-impact-3700-workers-2024-02-19/
2024-02-19 06:46
AMBALA, India, Feb 19 (Reuters) - Indian farmers' unions have rejected five-year contracts for minimum support prices (MSPs) proposed by the Indian government, one of their leaders said in a video posted on social media platform X on Monday. The Indian government has offered guaranteed support prices for pulses, corn and cotton in a bid to break a deadlock with protesting farmers, Trade Minister Piyush Goyal said on Sunday after week-long clashes between security forces and protesters. Tear gas and barricades were used to deter the farmers, who form an influential voting bloc, months ahead of a general election due by May, in which Prime Minister Narendra Modi seeks a record third term. Goyal's comments followed marathon talks with farmers' unions after the protesters, who are demanding higher prices backed by law for nearly two dozen crops, were halted at a distance of about 200 kms (125 miles) from New Delhi. Goyal said the government had proposed five-year contracts for minimum support prices (MSPs) to farmers who diversify their crops to grow cotton, pigeon peas, black matpe, red lentils and corn, paid by co-operative groups it promotes. "These organisations will buy the produce and there will be no limit on quantity," Goyal told reporters in the northern city of Chandigarh, adding that a similar price guarantee would also be offered to farmers who diversify and produce cotton. The farmers' unions had said they would decide on the proposal within a day or two, after reaching consensus among themselves. But Jagjit Singh Dallewal - one of their leaders - said in a video by Reuters partner ANI that the unions had rejected the proposal. Farm analysts said the government has completely sidestepped the demands of farmers. "The government should have at least addressed one of the main demands of a legal guarantee for MSPs," said Devinder Sharma, an independent food and trade policy analyst. The government's proposed solutions diverge significantly from what the farmers have been advocating for, indicating a lack of seriousness on the government's part regarding the whole issue, Sharma added. Switching more crops to pulses from rice and wheat that require more water will not only benefit a depleting water table but help cut back on imports of pulses. The world's biggest importer of pulses, India has struggled to hold back increases in the prices of pigeon peas and black matpe. Domestic corn demand has also been rising as the poultry and ethanol industries boost consumption. Police have used tear gas and barricades to stop thousands of farmers, who mainly grow wheat and rice, from marching to New Delhi, to press their demand that the government ensures a minimum price for all their produce. The government announces support prices for more than 20 crops each year to set a benchmark, but state agencies primarily buy rice and wheat at the support level, benefiting around just 7% of farmers who raise those crops. https://www.reuters.com/world/india/india-offers-protesting-farmers-support-prices-corn-cotton-pulses-2024-02-19/
2024-02-19 06:29
BEIJING, Feb 19 (Reuters) - Temperatures broke a 64-year-old record in China's far western region of Xinjiang, plunging to a bone-chilling minus 52.3 degrees Celsius (minus 63.4 degrees Farenheit) amid a cold spell and traffic disruptions following the Lunar New Year holiday. Several parts of China are battling another deep freeze as people return from week-long celebrations of the year's biggest holiday. Just before it started, blizzards and icy rain had stranded travellers on railways and roads. State media said Sunday's milestone in the Tuerhong township of Fuyun county was the lowest since records began in Xinjiang, surpassing a temperature of minus 51.5 C (minus 60.7 F) set on Jan. 21, 1960. The figure was just shy of the lowest national temperature of minus 53 C (minus 63.4 F) in Mohe, a city in the northeastern province of Heilongjiang on Jan. 22 last year. Through several days of cold and snow, 853 km (530 miles) of roads have been affected in the region's area of Altay, broadcaster CCTV said. That spurred highway authorities to send 47 vehicles and 86 rescuers to remove snow overnight. Transport ministry figures show the regions of Inner Mongolia and Xinjiang, along with the provinces of Liaoning, Jilin and Heilongjiang have closed 43 sections of road and 623 toll stations, CCTV said on Monday. National weather authorities raised the warning for freezing weather conditions to its second highest level, the Global Times newspaper said, with drastic falls expected across the nation through Thursday. The most severely affected areas will include parts of Inner Mongolia, northeastern China, the central province of Hubei and Hunan in the south, it added. China's extreme weather over the last year has ranged from sandstorms to torrential rain and record-breaking searing heat over the summer, as well as several typhoons. Over the weekend, severe sandstorms blanketed several cities in the region of Ningxia Hui, including its capital of Yinchuan. https://www.reuters.com/world/china/chinas-xinjiang-battles-harshest-cold-spell-over-six-decades-2024-02-19/
2024-02-19 06:20
LONDON/SINGAPORE, Feb 19 (Reuters) - The dollar inched higher on Monday after rising for the fifth week straight on the back of strong inflation data, while the yen traded near the psychologically important 150 level. U.S. markets are closed for the Presidents' Day holiday, with trading volumes likely to be low throughout the day. The dollar index , which tracks the currency against six peers, was last up 0.13% at 104.35, after rising 0.18% the previous week. It rose to its highest since mid-November last Tuesday to 104.97 after figures showed U.S. inflation came in stronger than expected in January, causing investors to dial down the number of interest rate cuts they expect from the Federal Reserve this year. But it slipped on Thursday after data showed retail sales fell last month. "In theory last week should have been a good week for the dollar, but the dollar didn’t really hold on to its gains," Chris Turner, global head of markets at ING, said. "Are we getting near to the point where the pricing in the Fed cycle is about right?" The euro was down 0.12% at $1.0763, after falling to a three-month low of $1.0695 last week. Sterling was unchanged at $1.2595. Survey-based purchasing managers' index data, released on Thursday, will give a sense of the health of the euro zone and UK economies in February. The minutes from the Fed's last meeting, due on Wednesday, are likely to be the main release for investors this week. Investors expect around 90 basis points of Fed rate cuts this year, according to money market pricing, down sharply from around 145 basis points at the start of February. The dollar slipped 0.1% against the yen on Monday, taking it to 150.08 yen. It remains around 6% higher against the yen this year as Japan has kept its ultra-loose monetary policy in place. That has created a wide gap between the two countries' bond yields which has boosted the attractiveness of the dollar. The rally has prompted speculation among investors that the Japanese authorities could intervene to boost their currency. Finance Minister Shunichi Suzuki last week warned that "rapid moves are undesirable for the economy". Weekly data from the U.S. markets regulator showed speculators again increased their net short position against the yen, taking it to a more than two-month high worth $9.2 billion. China's onshore yuan barely budged as investors returned from the week-long Lunar New Year break, despite tourism revenues surging during the holiday. It last changed hands for around 7.1987 per dollar. https://www.reuters.com/markets/currencies/dollar-steady-sticky-inflation-dents-rate-cut-expectations-2024-02-19/
2024-02-19 05:58
European shares dip, S&P futures quiet with Wall St off China markets make modest gains on return from LNY holiday Global bonds price for fewer, later rate cuts Nvidia results to test limits of AI euphoria LONDON Feb 19 (Reuters) - World shares struggled to climb on Monday after the chances of early interest rate cuts globally receded and Chinese markets recorded modest gains on their return from the lunar new year break. A holiday for U.S. markets made for thin trading, and results from AI star Nvidia (NVDA.O) , opens new tab on Wednesday could challenge the latest surge in tech stocks. MSCI's broadest index of world shares (.MIWD00000PUS) , opens new tab and Europe's broader index of stocks (.STOXX) , opens new tab both traded around 0.05% as of 13:53 GMT. "The mixed economic data released lately has put us in a transition period and we are waiting for the data to tell a consistent story," James Rossiter, head of global macro strategy at TD Securities, said. A red-hot U.S. CPI print on Tuesday followed by another upside surprise in producer prices on Friday left investors anxious inflation will persist. A weaker retail sales report, suggesting slower economic momentum augmented their concerns. However, U.S. labour market numbers have continued to show plentiful jobs and elevated wage growth. In Asia, Japan's Nikkei (.N225) , opens new tab ended flat on Monday, pressured by chip-related shares following a slump in their U.S. counterparts late last week. Chinese blue chips (.CSI300) , opens new tab finished up just over 1%, after tourism revenues during the Lunar New Year holiday surged by 47% compared with a year earlier as more than 61 million rail trips were taken. The country's central bank skipped another chance to cut rates on Sunday, limiting downward pressure on the yuan, but as deflation looms, analysts see scope for further policy stimulus. The same cannot be said for the United States as high readings on producer and consumer prices led markets to scale back pricing for rate cuts. "The risk to the rally is a stronger pick-up in inflation leading to higher yields," said Alain Bokobza head of global asset allocation in a Societe Generale note. Non-recessionary rate cuts pushing up yields and a slowing of Nasdaq growth might drive volatility, which the note said was likely in the second half of this year. Futures dropped, implying a 28% chance rates will be cut in May. HANGING ON NVIDIA The surprise on inflation means the minutes of the Fed's last policy meeting out this week will look dated, but any talk about the timing of potential cuts will be noted. There are plenty of Fed speakers out this week to comment on the outlook, with Fed Vice Chair Philip Jefferson and Governor Christopher Waller of particular interest. The market sea change on rates saw two-year Treasury yields spike to a 2024 high of 4.72% on Friday before steadying at 4.64%. Treasury futures were little changed on Monday with the cash market closed. S&P 500 futures ticked up by 0.1%, while Nasdaq futures added 0.21%, helped by hopes Nvidia could somehow beat already stratospheric expectations. The chipmaker's stock has surged 46% so far this year and accounted for more than a quarter of the S&P 500's gains. There is reason for optimism given that of the 80% of S&P 500 reporting so far, 75% have beaten forecasts. Higher bond yields underpinned the dollar at 149.99 yen , though the possibility of Bank of Japan intervention to prop up the yen has so far capped the currency pair at 150.88. The dollar index was a touch firmer, while the euro was tipped lower on the day at around $1.0770 , . The rise in yields did not prevent non-yielding gold firming 0.2% to around $2,015 an ounce . Oil prices eased as doubts about demand tussled with the threat of supply disruptions in the Middle East. Brent slipped 12 cents to $83.35 a barrel, while U.S. crude for April rose 11 cents to $79.30 per barrel. https://www.reuters.com/markets/global-markets-wrapup-1-2024-02-19/
