2024-01-03 17:28

Jan 3 (Reuters) - Pfizer (PFE.N) said on Wednesday that Canada's health regulator approved its gene therapy for the treatment of a rare inherited bleeding disorder called hemophilia B ahead of a U.S. decision. The approval was based on late-stage trials that showed a single dose of the therapy, to be sold under the brand name Beqvez, was superior to the current standard of care which involves replacing a blood-clotting protein called factor IX. The U.S. Food and Drug Administration (FDA) had in November 2022 approved CSL's (CSL.AX) Hemgenix, making it the first one-time gene therapy for hemophilia B. CSL had acquired exclusive global rights to Hemgenix from uniQure NV in 2021. Pfizer is also seeking U.S. approval for its experimental antibody, marstacimab, to treat hemophilia A and B. Hemophilia B is found in 1 in 40,000 people and represents about 15% of patients with hemophilia, according to the FDA. The U.S. health regulator is expected to give its decision on Pfizer's therapy in the second quarter of 2024. https://www.reuters.com/business/healthcare-pharmaceuticals/canada-approves-pfizers-gene-therapy-bleeding-disorder-2024-01-03/

2024-01-03 15:07

WASHINGTON, Jan 3 (Reuters) - The U.S. central bank is "making real progress" towards taming inflation without inflicting major damage on the job market, with a hoped-for soft landing "increasingly conceivable," Richmond Federal Reserve President Thomas Barkin said on Wednesday. While the best-case outcome of inflation falling without a major rise in the unemployment rate is "in no way inevitable," and could still be thrown off course, "you can see the case" developing in data that includes continued low joblessness and inflation that on a six-month basis is now below the Fed's 2% target, Barkin told the Raleigh Chamber of Commerce in North Carolina. "Is it settling as convincingly as the last six months would have suggested or not?" Barkin said in a question-and-answer session following his prepared remarks. "With every month that goes on we will build more conviction about that or not." Barkin did not provide details about his own policy expectations for the year, or when it might be appropriate for the Fed to begin reducing a policy rate that has been held steady since July in the 5.25%-5.50% range. Fed officials at the Dec. 12-13 policy meeting indicated they would likely not need to raise rates again, and Barkin noted that "most of us forecasted rate normalization to begin sometime this year." A majority of Fed officials at last month's meeting said they expected the policy rate would need to fall by at least three-quarters of a percentage point this year, with inflation continuing to decline. The Fed will hold its next policy meeting on Jan. 30-31, with investors broadly expecting rate cuts to begin seven weeks later at the March 19-20 meeting. Barkin, however, said risks to a soft landing remain, including that delayed impacts from current high interest rates hit harder than expected, and also that outside shocks or stickier-than-expected inflation makes a full return to the Fed's target more difficult than anticipated. "That's why the potential for additional rate hikes remains on the table," Barkin said, with the timing and pace of any rate cuts determined by whether inflation continues to fall and the economy continues to "fly smoothly ... There's no autopilot. And the data that come in this year will matter." https://www.reuters.com/markets/us/feds-barkin-says-soft-landing-economy-increasingly-conceivable-2024-01-03/

2024-01-03 15:02

WASHINGTON, Jan 3 (Reuters) - U.S. manufacturing contracted further in December, though the pace of decline slowed amid a modest rebound in production and improvement in factory employment. The Institute for Supply Management (ISM) said on Wednesday that its manufacturing PMI increased to 47.4 last month after being unchanged at 46.7 for two straight months. It was the 14th consecutive month that the PMI stayed below 50, which indicates contraction in manufacturing. That is the longest such stretch since the period from August 2000 to January 2002. Economists polled by Reuters had forecast the index rising to 47.1. According to the ISM, a PMI reading below 48.7 over a period of time generally indicates a contraction of the overall economy. The ISM and other factory surveys, however, likely overstate the weakness in manufacturing. The so-called hard data suggest that manufacturing, which accounts for 10.3% of the economy, is plodding along. Orders for long-lasting manufactured goods were up strongly on a year-on-year basis in November. Though factory production has been weak, the magnitude of the drop has gotten smaller in recent months. The economy continues to expand, growing at a 4.9% annualized rate in the third quarter. Growth estimates for the October-December quarter are currently as high as a 2.0% pace. The ISM survey's forward-looking new orders sub-index fell to 47.1 last month from 48.3 in November. Production at factories rebounded, with the sub-index coming in at 50.3 from 48.5 in November. Production could improve further as a measure of customers' inventories fell back below the 50 level after rising in November to what the ISM said was the upper end of "just right." Several manufacturers in November cited the need to reduce inventory levels. Subdued demand helped to further depress prices at the factory gate, a sign that goods deflation could prevail for sometime. The survey's measure of prices paid by manufacturers dropped to 45.2 from a seven-month high of 49.9 in November. The survey's measure of supplier deliveries edged up to 47.0 from 46.2 in the prior month. A reading below 50 indicates faster deliveries. Factory employment picked up, though it remained weak amid attrition, hiring freezes and layoffs. The survey's gauge of factory employment rose to 48.1 from 45.8 in November. This measure has not been a reliable predictor of manufacturing payrolls in the government's closely watched employment report. According to a preliminary Reuters survey of economists, manufacturing payrolls likely increased by 5,000 jobs in December as the boost from the return of striking United Auto Workers union members faded. Factory employment rose 28,000 in November. Overall nonfarm payrolls are expected to have increased by 168,000 jobs last month after surging 199,000 in November, according to the Reuters survey. The unemployment rate is forecast rising to 3.8% from 3.7% in the prior month. The government is scheduled to publish its closely watched employment report for December on Friday. https://www.reuters.com/markets/us/us-manufacturing-sector-eyes-recovery-december-ism-2024-01-03/

2024-01-03 14:03

Elections scheduled in key EM markets such as Taiwan, South Africa, India, Mexico Fiscal risk from pre-election spending tops investors' concerns Citi points to potential currency market volatility Investment flows become more granular - BlackRock LONDON, Jan 3 (Reuters) - Emerging markets are gearing up for their biggest election year in decades, with investors focused on fiscal discipline and populist shifts that could stir markets and blur the outlook for some key economies. Countries home to more than half the world's population and accounting for more than 60% of global economic output go to the polls in 2024. The calendar is bookended by votes in Taiwan in January - a high-stakes geopolitical event - and in sovereign defaulter Ghana in December, as the country strives to emerge from a debt crunch. "This is an election year like we have never seen before. It really is an extraordinary year," said David Lubin, associate fellow at think tank Chatham House and Citi's former head of emerging market economics. "Recent elections in Argentina and Poland have reminded us that elections do produce surprises," Lubin added. The elections frenzy comes against a backdrop of sharply higher global borrowing rates - piling pressure on more fragile economies even though the prospect of interest rate cuts from the world's big central banks is firmly on the horizon. For investors, elections divide into three categories: Those where the outcome is rather obvious, such as Russia or Venezuela; those where it seems clear but the ballot is contested, for example India, Mexico or Indonesia; and those where there is genuine uncertainty, like in South Africa. The 2023 polls in Argentina and Poland also served as reminders that governments due to face their electorates are more often than not prone to loosening the purse strings - a trend that can leave those who take over struggling to roll back the handouts. Even when Argentina's previous government ramped up spending between the first and second round of their vote, radical Javier Milei swept to power and embarked on a radical reform programme. In Poland, the surprise election win of the liberal, pro-EU Donald Tusk got the thumbs up from investors. OPEN WALLETS Fiscal discipline is seen as key, especially following a series of external shocks ranging from COVID-19 to Russia's war in Ukraine and a rise in global yields that has highlighted the need for countries to keep spending tightly controlled, said Yvette Babb, a portfolio manager at asset manager William Blair. "There is very limited margin for populist - often times meaning 'expensive' - policy stances across emerging markets," said Babb. "In many of our markets, elections victories have historically been tied to fiscal stances and populist policy. For this to continue it would be very controversial." Morgan Stanley flagged fiscal risks from pre-election spending as a key driver this year for South Africa, Romania, Russia, El Salvador, Dominican Republic and Uruguay. The ramifications could be felt well beyond this year. The Institute of International Finance (IIF) said the "tsunami" of 2024 elections could add to an already record glut of global debt estimated to have hit $310 trillion by the end of 2023. "A sudden increase in government spending during this global elections cycle could further elevate interest (payments) for many countries," warned Emre Tiftik, Director of Sustainable Research at the IIF, adding that this could create further volatility in markets. Some fear this could spur a resurgence of so-called bond vigilantes, investors who punish profligate governments by selling their bonds, driving yields higher. CURRENCY SHIVERS Analysts at Citi, who also warn that the looming emerging markets election cycle might see "less policy discipline than investors would like" - have studied the short-term effects markets might have to contend with. While some votes are bound to generate more volatility than others, currency markets are often the first to feel election nerves, especially in Latin America, according to Citi strategist Dirk Willer. He points to a reliable pattern for Mexico's peso that sees the currency weakening in the lead-up to the vote only to strengthen on the emergence of some kind of certainty once the election result seems reasonably established. Latin America's second-largest economy is scheduled to hold elections on June 2 with the incumbent party's candidate enjoying a healthy lead in opinion polls. Evidence of the heavy election cycle shaping investment flows to equities already emerged in 2023, said Karim Chedid, head of EMEA iShares investment strategy at BlackRock. "We are seeing an evolution of the EM trade from broad to more granular which I am keeping on my radar in 2024 because of the heavy election calendar," said Chedid, singling out Mexico but also India. The world's most populous country is set to hold elections in April or May, with self-styled strong man Narendra Modi expected to win a third term as prime minister. https://www.reuters.com/world/emerging-markets-brace-wave-elections-with-fiscal-discipline-stake-2024-01-03/

2024-01-03 11:22

FRANKFURT, Jan 3 (Reuters) - Renewable energy accounted for 55% of electricity transported on German networks in 2023, taking the country closer to its climate targets, the energy regulator said on Wednesday. Germany wants green power to account for 80% of its energy mix by 2030. It has ditched nuclear power and aims to abandon most of its coal generation and use remaining gas plants mostly for grid back-up. Within renewables, offshore wind contributed a 31.1% share, solar accounted for 12.1% and biomass 8.4%, while the remaining 3.4% came from hydropower and other renewables, the Bundesnetzagentur said in a statement. The total 55% share was 6.6% higher than the contribution recorded in 2022, partly due to capacity expansion as well as weather factors. Power grids, which are consumer-funded and supervised by the agency, must facilitate the ongoing transition from central fossil fuels-based generation to millions of decentralised low-carbon production units tapping mainly into wind and sunshine. The total load on public power networks in 2023 fell by 5.3% to 456.8 terawatt hours (TWh) last year, as power production was adjusted to weaker demand and as conventional gas and coal power sources gave priority to weather-derived green power. German energy demand is still suffering from a contraction in economic activity in the aftermath of Russia's invasion of Ukraine, with its ensuing slump in westbound energy exports, which sent local prices rallying in 2022. But day-ahead power prices in the wholesale market last year became more palatable for consumers, the regulator said. The benchmark price dropped by 60% year-on-year to 95.18 euros a megawatt hour (MWh), recapturing 2021 levels. https://www.reuters.com/business/energy/renewable-energys-share-german-power-grids-reaches-55-2023-2024-01-03/

2024-01-03 11:21

NEW DELHI, Jan 3 (Reuters) - India's oil imports from Russia fell due to unattractive pricing and not because of payment problems, oil minister Hardeep Singh Puri said on Wednesday. "There is no payment problem ... It is a pure function of the price at which our refineries will buy," Puri told a press conference. India's December Russian oil imports fell to an 11-month low as five ships loaded with light sweet Sokol grade headed to other locations after the U.S. imposed sanctions on some vessels and shippers for not complying with the G7-fixed $60 per barrel price caps for oil at Russian ports. "India's leadership has only one requirement that the Indian consumer gets the energy at the most economical price, without disruption," he said, adding on an average India buys 1.5 million barrels per day of Russian oil. He said oil companies have not yet complained to him about facing any problems in settling payments for oil imports. "If they (Russia) don't offer us (good) discount why would we buy from them," Puri said in Hindi, adding that new oil producers in far flung regions are willing to offer better discounts than Russia on crude sales. He refused to elaborate on new suppliers that are offering better prices. India, the world's third biggest oil importer and consumer, has emerged as a top buyer of sea-borne Russian oil sold at a discount after Western entities retreated following Moscow's invasion of Ukraine. He said the global markets have plenty of oil and there would be no supply constraints. https://www.reuters.com/markets/commodities/indias-russian-oil-imports-drop-pricing-not-due-payment-woes-2024-01-03/