2024-01-05 21:36

WINNIPEG, Manitoba, Jan 5 (Reuters) - The union representing more than 400 workers at Viterra's facilities in the Canadian province of Saskatchewan suspended plans for a strike on Friday to allow for a vote on the Rotterdam-based grain handler's latest contract offer. The Grain and General Services Union said in the period leading up to the vote, employees will work to rule, meaning they will not take on tasks beyond their contractual and legal obligations. Viterra is one of Canada's largest handlers of wheat, canola and other crops. The company is owned by commodity giant Glencore (GLEN.L), the investment arm of the Canada Pension Plan and British Columbia Investment Management Corp. Saskatchewan is Canada's biggest grain-growing province. Viterra said in a statement that it is offering a four-year contract, with pay increases of 4.5% in the first year, 3.75% in the second year and 2.5% in each of the final two years. The worker vote will happen in the coming days and ballots will be counted on Jan. 19, the union said. A strike would have a "huge impact" on farmers' cash flow, particularly those with contracts to sell crops to Viterra, said Ian Boxall, president of the Agricultural Producers Association of Saskatchewan. Boxall said Viterra represents 27% of Saskatchewan's capacity at country elevators, the facilities that buy crops from farmers and transport them to processors and millers. A strike would also back up grain transportation to British Columbia ports, which export much of Canada's harvest, Boxall said. Canada is the world's biggest exporter of canola and fourth-largest wheat exporter. The two sides had met on Wednesday and Thursday with a federal mediator. Workers were in strike position as of 3 p.m. ET (2000 GMT) on Friday. The employees work in operations, maintenance and the company's Canadian head office. Bunge Ltd (BG.N), a rival commodity firm, said last year that it would acquire Viterra, subject to regulatory approval in Canada and elsewhere. https://www.reuters.com/markets/commodities/union-suspends-planned-strike-viterra-grain-operations-saskatchewan-2024-01-05/

2024-01-05 21:29

TSX ends up 0.3%, at 20,937.55 For the week, the index was down 0.1% Energy rallies 0.6%; oil settles 2.2% higher Heavily weighted financials add 0.5% Jan 5 (Reuters) - Canada's main index rose on Friday, ending the first week of 2024 on a positive note, as investors shifted into sectors, such as energy and financials, offering cheaper valuations and took in stride disappointing domestic jobs data. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) ended up 66.2 points, or 0.3%, at 20,937.55. For the week, it was down 0.1%, as some of the optimism that had fueled markets in the final two months of 2023 ebbed. The trend at the start of the year has been for investors to reduce their exposure to some high-flying sectors, such as technology, and move to sectors that appear to offer more value, said Elvis Picardo, a portfolio manager at Luft Financial, iA Private Wealth. "You are seeing financials attract a bid ... energy is stabilizing. So it is quite likely you are seeing some element of sector rotation going on to kick off 2024," Picardo said. Canada's economy added barely any jobs in December, data showed. "Investors were braced for some kind of slowdown in Canada, so it doesn't change the narrative much," Picardo said. "The bigger issue at play was what happens south of the border." U.S. employers hired more workers than expected in December while raising wages at a solid clip, casting some doubt on financial market expectations that the Federal Reserve would start cutting interest rates in March. The Toronto market's energy sector rallied 0.6% as the price of oil settled 2.2% higher at $73.81 a barrel on rising Middle East tensions. Financials, the TSX's most heavily weighted sector, added 0.5% and healthcare was up 1.4%, led by Bausch Health Companies (BHC.TO). Its shares rose to a near three-month high after notching a gain of 5.3%. https://www.reuters.com/markets/tsx-futures-slide-gold-prices-lose-shine-eyes-us-payrolls-2024-01-05/

2024-01-05 21:00

LINTHICUM, Md., Jan 5 (Reuters) - Continued strong U.S. job growth and a low unemployment rate shows the Federal Reserve is not yet at the point where its efforts to control inflation risk a direct tradeoff with the central bank's other goal of maintaining maximum employment, Richmond Fed President Thomas Barkin said on Friday. "Getting inflation under control is critically important and at this point we are still at 3.7% unemployment and 216,000 jobs added," per month, Barkin said, referring to the results of the newly-released December jobs survey. "We're still at a point where inflation is over our target and unemployment is arguably at or below," levels consistent with maximum employment, Barkin said in comments to reporters following a presentation to the Maryland Bankers Association. At the Fed's December 12-13 meeting some policymakers said they thought current high interest rates could soon put the Fed in the position of having to choose between further progress lowering inflation or a markedly higher unemployment rate. "I don't think we've gotten to that...quite yet," Barkin said, "but you can see it out there." As it stands, he said he felt a so-called "soft landing," with inflation controlled without the sort of large rise in unemployment that has followed many periods of tight monetary policy, was "increasingly conceivable." Balancing the need for further downward pressure on inflation against the possible risks of a sharper-than-expected economic slowdown will be key to the Fed's coming debate over when to lower the benchmark interest rate from the current 5.25% to 5.5% range that has been in place since July. At their December meeting a majority of Fed officials projected the policy rate would need to fall by three quarters of a percentage point over the course of the year, an outlook that gives no guidance on when that process might start. Investors expect rate cuts beginning in March, with a deeper reduction of around 1.5 percentage points over the year than Fed officials project. Barkin did not comment on his own rate outlook, but said that at this point he is still building "conviction" that inflation will in fact return to the 2% target. While one important measure of inflation is, on a six month basis, already below 2%, Barkin said he remained concerned about how much recent progress on inflation has depended on weaker prices for goods, while inflation for housing and in some service industries remains above target. "You've got this goods deflationary cycle which is masking a continued inflationary cycle on services and shelter. That doesn't have to be a bad thing. You can get to 2% in lots of ways," Barkin said. "My metric is conviction...I don't have any objection conceptually to toggling rates back toward normal levels as you build increasing conviction and confidence that inflation is on a convincing path back to your target." https://www.reuters.com/markets/us/feds-barkin-strong-us-jobs-report-keeps-focus-inflation-fight-2024-01-05/

2024-01-05 20:54

Jan 5 (Reuters) - U.S. natural gas producer Chesapeake Energy (CHK.O) and peer Southwestern Energy (SWN.N) are nearing a merger that would create a nearly $17 billion company, a person familiar with the matter told Reuters on Friday. The deal could come together as soon as next week provided the talks do not fall apart, the source said, requesting anonymity since talks are private. Reuters had reported in October that Chesapeake was exploring an acquisition of Southwestern. A potential deal could create a company that would overtake EQT (EQT.N) as the largest natural gas-focused exploration and production firm in the U.S. by market value, at a time when shale companies seeking scale and efficiencies are fueling a rapid consolidation in the energy sector. Shares of Southwestern and Chesapeake closed more than 7% and 3%, respectively, after the Wall Street Journal reported the talks earlier in the day. The companies did not immediately respond to requests for comment from Reuters. The deal talks come against the backdrop of a sluggish U.S. natural gas prices. U.S. natural gas futures ended 2023 with the biggest percentage decline since 2006 due to record production, ample inventories and a mild winter. Chesapeake has been shedding oil-producing assets to focus on its competence in natural gas since emerging from bankruptcy in 2021. The two companies are neighbors; most of Southwestern's production is in Appalachia's shale formations and the Haynesville basin in Louisiana, where Chesapeake also operates. https://www.reuters.com/markets/deals/southwestern-chesapeake-near-17-billion-merger-wsj-2024-01-05/

2024-01-05 20:11

CAIRO, Jan 5 (Reuters) - Mohammed Ali al-Houthi, head of Yemen's Houthi supreme revolutionary committee, said that any country to involve itself with the United States-led Red Sea coalition will lose its maritime security and be targeted. Al-Houthi made the comments on Friday in an interview with the BBC. https://www.reuters.com/world/middle-east/yemens-houthi-official-bbc-any-country-involve-with-us-led-red-sea-coalition-2024-01-05/

2024-01-05 20:07

WASHINGTON, Jan 5 (Reuters) - The U.S. environmental regulatory agency will hold a hearing next week on whether to approve California's plan to require all new vehicles sold in the state by 2035 to be electric or plug-in electric hybrids. The California Air Resources Board (CARB) in August 2022 approved the landmark plan to end the sale of gasoline-only vehicles in the state by 2035. In May, CARB asked the U.S. Environmental Protection Agency (EPA) to approve a waiver under the Clean Air Act allowing the plan to proceed. EPA is holding a Jan. 10 public hearing and will take written comments through Feb. 27 on California's request. CARB said it appreciated EPA scheduling the hearing to consider its request. California's rules set yearly rising zero emission vehicle requirements starting in 2026, which have been adopted by at least 12 other states. President Joe Biden's administration has repeatedly refused to endorse setting a date to phase out the sale of gasoline-only vehicles. Under a separate EPA proposal released in April to drastically cut vehicle emissions through 2032, automakers are forecast to produce 60% EVs by 2030 and 67% by 2032 to meet requirements. Automakers have urged the administration to soften its proposal, which is expected to be finalized in coming months. Last month, the Republican-led U.S. House of Representatives voted to bar EPA from moving forward with emissions regulations. The White House immediately threatened a veto of that proposal. Former President Donald Trump, who is seeking the Republican nomination to challenge Biden in 2024, has vowed to reverse the EV rules. California's zero-emission rules will cut smog-causing pollution from light-duty vehicles by 25% by 2037. The rules mandate 35% of the new cars sold be plug-in hybrid electric (PHEV), EVs or hydrogen fuel cell by 2026. That proportion will rise to 68% by 2030 and 100% by 2035. The California waiver request says through 2040, California's zero emission rules will cost $210.35 billion but have total benefits of $301.41 billion. CARB's rules allow automakers to sell up to 20% PHEVs by 2035. https://www.reuters.com/business/autos-transportation/us-epa-hold-hearing-california-2035-ev-sales-mandate-plan-2024-01-05/