2023-12-15 09:52
LONDON, Dec 15 (Reuters) - The number of companies in England and Wales declared insolvent in November was 21% higher than a year earlier, government figures showed on Friday, adding to the pattern of higher corporate failures as the Bank of England raises interest rates. The Insolvency Service, a public body, said there were 2,466 registered company insolvencies during the month. The BoE raised rates 14 times between December 2021 and August this year, taking Bank Rate from 0.1% to 5.25%. On Thursday, the BoE kept borrowing costs at that level and said they would need to stay high for an extended period. https://www.reuters.com/markets/europe/england-wales-insolvencies-rise-by-21-november-2023-12-15/
2023-12-15 09:39
NAIROBI, Dec 15 - The Kenyan shilling weakened on Friday, mainly due to increased demand for hard currency from oil and manufacturing importers, traders said. At 0915 GMT, commercial banks quoted the shilling at 153.50/70, compared with Thursday's closing rate of 153.40/60. https://www.reuters.com/markets/currencies/kenyan-shilling-weakens-importer-dollar-demand-2023-12-15/
2023-12-15 06:46
Drop in New York manufacturing orders starts sell-off NY Fed President's comments also shake market IEA says global crude demand to grow in 2024 HOUSTON, Dec 15 (Reuters) - Brent and U.S. crude futures finished at a small loss following a see-saw session, in which prices fell more than $1 a barrel at one point on Friday, as traders tried to reconcile mixed signals for oil demand in the coming year. Brent futures settled down 6 cents, or 0.08%, at$76.55 a barrel. U.S. West Texas Intermediate (WTI) crude finished down 15 cents, or 0.21%, at $71.43. The market tumbled earlier in the session after a New York Federal Reserve Bank manufacturing survey showed a third month of declines in new orders, which could be a sign of weaker demand for oil in the coming year. "What started the sell off was the sharp drop in the New York manufacturing numbers," said Phil Flynn, analyst at Price Futures Group. "This market seems a little more sensitive to every new headline," Flynn added. "They're still not sure we've found the bottom to this market." Traders were also shaken by comments from New York Federal Reserve Bank President John Williams on Friday about hopes for interest rate cuts in the coming year. "We aren't really talking about rate cuts right now," Williams said in an interview with CNBC. When it comes to the question of lowering rates, "I just think it's just premature to be even thinking about that" at this point, he said. On Thursday Federal Reserve Chairman Jerome Powell said interest rate hikes intended to curb inflation were likely at an end, but left open the possibility for further increases. The dollar fell to a four-month low on Thursday after the U.S. central bank after Powell's comments, seeing signs lower borrowing costs are coming in 2024. The dollar index was broadly steady on Friday. A weaker dollar makes dollar-denominated oil cheaper for foreign buyers. World oil consumption will rise by 1.1 million barrels per day (bpd) in 2024, the IEA said in a monthly report. While that is a 130,000-bpd increase from its previous forecast, the estimate is less than half of the Organization of the Petroleum Exporting Countries' (OPEC) demand forecast of 2.25 million bpd. OPEC and its allies led by Russia, in late November agreed on voluntary cuts of about 2.2 million bpd lasting throughout the first quarter. "The markets in general and oil in particular are trying to sort out what's going on," said John Kilduff, partner with Again Capital LLC. "Everyone's trying to feel their way." Money managers cut their net long U.S. crude futures and options positions in the week to December 12, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday. Another bullish signal for oil markets on Friday was the lower drilling rig count from energy technology firm Baker Hughes. The oil and gas rig count, an early indicator of future output, fell by 3 to 623 in the week to Dec. 15. Baker Hughes said U.S. oil rigs fell 2 to 501 this week, while gas rigs were unchanged at 119. That brings the rig count down from a post-pandemic high of 784 in December 2022 due to a drop in oil and gas prices. https://www.reuters.com/business/energy/oil-prices-track-first-weekly-rise-two-months-2023-12-15/
2023-12-15 06:46
MUMBAI, Dec 15 (Reuters) - The Indian rupee is expected to be little changed on Friday amid more losses for the U.S. dollar and likely orders to sell the local currency. Non-deliverable forwards indicate the rupee will open broadly unchanged from 83.33 in the previous session. The dollar has "suffered a further selloff", and for the rupee that just means that 83.40-83.42 "is safe", a FX trader at a bank said. "To expect any other (effect) will be too optimistic considering the customary (dollar buy) orders we are used to." The USD/INR has repeatedly run into buying interest on the smallest of dips over the last several sessions. Importers and dollar purchases by public sector banks have kept dips in USD/INR shallow. The dollar index on Thursday dropped to the lowest in four months, thanks to the rally on the euro and the UK pound. The euro climbed to 1.10 to the dollar on Thursday after European Central Bank president Christine Lagarde pushed back on expectations of aggressive rate cuts. The Bank of England too did not endorse rate cuts in 2024. "The ECB and BoE signalled high-for-longer interest rates," ANZ said in a note. The U.S. Federal Reserve, on the other hand, emboldened bets for rate cuts next year. The Fed's slight dovish tilt has prompted investors to price in more rate cuts than before the policy announcement. Markets are now pricing in a 75% chance of a rate cut in March by the Fed, according to CME FedWatch tool, and a total of 150 basis points (bps) of rate cuts by Dec. 2024. U.S. yields dropped more on Thursday with the 10-year posting a low of 3.88%. That is a near 30 bps fall from before the Fed outcome. KEY INDICATORS: ** One-month non-deliverable rupee forward at 83.38; onshore one-month forward premium at 7.75 paisa ** Dollar index down at 101.92 ** Brent crude futures up 0.4% at $76.9 per barrel ** Ten-year U.S. note yield at 3.94% ** As per NSDL data, foreign investors bought a net $635.6mln worth of Indian shares on Dec. 13 ** NSDL data shows foreign investors sold a net $26.4mln worth of Indian bonds on Dec. 13 https://www.reuters.com/markets/currencies/rupee-see-dollar-selloff-undermined-by-customary-sell-orders-2023-12-15/
2023-12-15 06:20
NEW YORK, Dec 15 (Reuters) - The dollar rebounded on Friday after Federal Reserve Bank of New York President John Williams pushed back against the market’s rate cut expectations, though the dollar index remained on track for its worst weekly performance in a month. The dollar tumbled broadly after updated interest rate projections of Fed officials released on Wednesday showed an expectation for 75 basis points in cuts in 2024. Fed Chairman Jerome Powell was also interpreted as striking a more dovish tone at the conclusion of the U.S. central bank’s two day meeting, when he said that the tightening of monetary policy is likely over, with a discussion of cuts coming "into view." But Williams said on Friday that "we aren't really talking about rate cuts right now" at the Fed and it's "premature" to speculate about them. “It strikes some of the similar tones that we heard from Powell earlier this week but it kind of reinforces the fact that the Fed is still very much a data dependent bank and not really endorsing what the market’s pricing in to a degree,” said Bipan Rai, North American head of FX strategy at CIBC Capital Markets in Toronto. Rai also noted that a large part of the move in the dollar this week has been due to rebalancing positions that were heavily tilted towards the greenback and focused in specific currency pairs, such as against the Japanese yen. “This is a story about the inordinate amount of leverage and skewed positioning in the market that needed to be rebalanced more than any sort of dovish interpretation of what Powell said earlier this week,” he said. Traders are pricing in aggressive expectations for rate cuts, with the first reduction seen likely in March and 141 basis points in cuts seen by December. Atlanta Fed President Raphael Bostic said on Friday that the U.S. central bank can begin reducing interest rates "sometime in the third quarter" of 2024 if inflation falls as expected. Chicago Fed President Austan Goolsbee also said that the Fed may soon need to shift its focus to preventing a run-up in unemployment from fighting inflation. Data on Friday showed that production at U.S. factories rose in November, lifted by a rebound in motor vehicle output following the end of strikes, but activity was weaker elsewhere as manufacturing grapples with higher borrowing and softening demand for goods. The dollar index was last up 0.56% on the day at 102.52. It fell to 101.76 on Thursday, the lowest since Aug. 10. The index is on track for a weekly loss of 1.39%, the worst weekly performance since Nov. 19. The euro fell 0.83% to $1.0899. It reached $1.1009 on Thursday, the highest since Nov. 29. Sterling dropped 0.60% to $1.2690, after reaching $1.2793 on Thursday, the highest since Aug. 22. The euro and sterling were supported on Thursday by the European Central Bank (ECB) and Bank of England pushing back against rate cuts. Investors are nonetheless still betting heavily on rate cuts from both central banks next year. The ECB has more scope than most to ease, according to Pepperstone strategist Chris Weston, given low euro zone growth and a rapid decline in inflation. "However, the pushback from (ECB President) Lagarde and co suggests conjecture on the timing of initial easing – perhaps this is a function that it's desirable to keep one's currency strong to limit imported inflation." The euro was also dented by surveys on Friday showing that the downturn in euro zone business activity surprisingly deepened in December. The Bank of Japan is the last of the major central banks to meet this month and the question among traders and investors is whether or not it will signal its intention to ditch its policy of keeping interest rates at rock bottom next week. The dollar was last up 0.24% at 142.18 yen , after dropping to 140.95 on Thursday, the lowest since July 31. The greenback is on track to post its worst week against the Japanese currency since July 14 with a 1.94% fall. Bitcoin fell 2.1% to $42,130. ======================================================== Currency bid prices at 3:00PM (2000 GMT) https://www.reuters.com/markets/currencies/dollar-feels-heat-feds-dovish-pivot-weighs-2023-12-15/
2023-12-15 06:18
NEW DELHI, Dec 15 (Reuters) - India will buy Venezuelan oil as some refiners in the country have the capability to process heavy crude oil, Oil Minister Hardeep Singh Puri said on Friday. Indian refiners have already resumed Venezuelan oil purchases, with Reliance Industries (RELI.NS), Indian Oil Corp (IOC.NS) and HPCL-Mittal Energy securing cargoes of Venezuelan oil after the United States lifted sanctions in October. India last imported Venezuelan crude in 2020. "Many of our refineries, including Paradip, (are) capable of using that heavy Venezuelan oil. And we will buy (Venezuelan oil)," Puri told reporters at a press conference. India is the world's third-biggest oil importer and consumer, shipping over 80% of its oil needs from overseas. It wants to cut its crude import bill and is looking to expand its refining. India is willing to buy oil from any country that is not sanctioned, the minister added. Puri said India currently refines 5 million barrels per day of oil and the country's refining capacity is rising. "...if Venezuelan oil comes to market we welcome it," he said. The minister also said some Indian money is locked up in Venezuela, referring to India's Oil and Natural Gas Corp (ONGC.NS), which has more than $500 million in dividends pending since 2014 for its stake in Venezuelan projects. https://www.reuters.com/business/energy/india-will-buy-venezuelan-oil-says-minister-2023-12-15/
