2023-12-13 18:51

Dec 13 (Reuters) - Argentina's government under libertarian President Javier Milei has unveiled a "shock therapy" economic plan, a radical and likely painful blueprint to stabilize the South American country's economy which faces its worst crisis in decades. The plan included a devaluation of the peso currency by more than 50%, which took effect on Wednesday, as well as wide-ranging measures for cutting state spending. The austerity moves have been cheered by markets but will likely hurt Argentines. Here are some of the measures laid out by Economy Minister Luis Caputo, who seeks to tame a fiscal deficit he put at 5.5% of GDP, inflation heading toward 200% and a mountain of debt well over $100 billion with creditors and bondholders. PESO DEVALUATION, TAX ADJUSTMENTS Argentina set the official exchange rate at 800 pesos per dollar versus 366 on Tuesday, helping close a gap with parallel markets which have flourished since strict capital controls were imposed in 2019 and where dollars trade for over 1,000 pesos. The move aims to encourage producers and exporters, and will come alongside temporary tax hikes on some exports and imports. Caputo, however, pledged to remove some taxes once the current "emergency" situation is resolved. Caputo also pledged to streamline and simplify the approval process for Argentina's current imports system, known as SIRA. SMALLER STATE, NO PUBLIC WORKS TENDERS Under Milei's administration the state will shrink by around a third its total workforce, cutting the number of ministries in half to nine and reducing secretariats to 54 from 106. "There is no money," Milei said in his inaugural speech, as he pledged to create a leaner government structure. State labor contracts of less than a year will not be renewed, in a measure to block family members from the previous government from retaining privileges, Caputo said. The government will not hold new tenders for public works and will cancel developments not yet begun, a bid to shift the load of infrastructure projects to the private sector. Money available for discretionary transfers to provinces will be reduced to the minimum, Caputo added. LESS SUBSIDIES, TARGETED SOCIAL SPENDING Caputo vowed to target energy subsidies, which cost the government $12 billion last year, but to strengthen targeted social programs directly handled by the government to ensure help goes to those who need it. "We are going to reduce energy and transportation subsidies. Today the state artificially maintains very low prices in energy and transportation rates through subsidies," Caputo said. Government subsidies for media companies will be suspended, as they are a nonessential expense, the minister noted. Argentina's universal child allowance plan will be doubled and a food card program by the government will be increased by 50%. "We are without doubt facing the worst legacy in our history, a country where Argentines are increasingly poorer," Caputo said. "We are going to be worse off for a few months than before, particularly in terms of inflation." https://www.reuters.com/world/americas/what-does-argentinas-shock-therapy-economic-package-involve-2023-12-13/

2023-12-13 18:50

WASHINGTON, Dec 13 (Reuters) - U.S. President Joe Biden welcomed the agreement reached at the COP28 climate summit on Wednesday to begin reducing global consumption of fossil fuels, calling it a "historic milestone" despite work still needed to reach the world's climate goals. "While there is still substantial work ahead of us to keep the 1.5 degree C goal within reach, today’s outcome puts us one significant step closer," Biden said in a statement released by the White House. https://www.reuters.com/business/environment/biden-welcomes-historic-cop28-deal-cites-work-needed-reach-climate-goals-2023-12-13/

2023-12-13 18:18

Dec 13 (Reuters) - Coinbase (COIN.O) will start offering spot crypto trading services on its international exchange from Thursday, the company said, as it expands beyond the U.S. Spot trading on the international exchange, currently geared toward derivatives, will roll out in phases, starting with bitcoin and ether against USDC stablecoin from Dec. 14 for institutional clients, the company said in a blog post. Bloomberg News first reported the development. "The timing of the announcement is prudent," CFRA Research analyst Michael Elliott said. Coinbase "should be able to utilize the launch to gain experience and gauge demand for spot products.. potentially benefiting COIN long-term as they eventually look for U.S. approval." Bitcoin has more than doubled in value this year to hit a 20-month high last week as anticipation of a spot bitcoin exchange traded fund improved trader sentiment and revived broader trading volume. Coinbase's shares, up fourfold so far this year, edged 0.5% higher on Wednesday. In June, the U.S. Securities and Exchange Commission sued Coinbase for allegedly selling unregistered securities, which the company has denied. The lawsuit is part of a broader U.S. crackdown on the industry following some high-profile collapses including FTX. https://www.reuters.com/technology/coinbases-international-exchange-launch-spot-crypto-trading-2023-12-13/

2023-12-13 17:29

DUBAI, Dec 13 (Reuters) - A tanker in the Red Sea off Yemen's coast was fired on by gunmen in a speedboat and targeted with missiles, maritime sources said on Wednesday, the latest incident to threaten the shipping lane after Yemeni Houthi forces warned ships not to travel to Israel. A second commercial vessel was also approached by the speedboat in the same area though not attacked, British maritime security firm Ambrey and other sources said. Separately, a U.S. defence official in Washington said the U.S. Navy destroyer Mason on Wednesday shot down a Houthi drone launched from Yemen that was headed in its direction as it responded to reports of an attack on a commercial vessel. The U.S. official said Houthis had attacked the commercial vessel Ardmore Encounter in skiffs and then two missiles were fired from Yemen that missed the ship. The Ardmore Encounter reported no damage or injuries and continued on its way. Ardmore Shipping Corp, owner and operator of the Ardmore Encounter, confirmed the vessel came under attack while transiting the Red Sea. "No one boarded the vessel and all crew members are safe and accounted for. The vessel remains fully operational with no loss of cargo or damage onboard, and is considered to be out of immediate danger," the company said in a statement, adding the ship "received military assistance during the attack". The Iran-aligned Houthi group has sought to support their Palestinian ally Hamas in the Gaza war by firing missiles at Israel and threatening shipping in the busy Bab al-Mandab Strait, next to Yemen at the southern entrance to the Red Sea. There was no immediate claim of responsibility for the latest incidents in the busy shipping route off Yemen's coast. "Houthis continue to attack international shipping focusing on ships which in their opinion have a link to Israeli interests or nationals. The safety implications to international shipping are considerable and very concerning," Jakob Larsen, head of safety and security at shipping association BIMCO, told Reuters. "It is pure luck no seafarers have been killed yet." Israel said the international community had to protect global shipping lanes. Ambrey said the Marshall islands-flagged chemical tanker Ardmore Encounter reported an "exchange of fire" with a speedboat 55 nautical miles (102 km) off Hodeidah, saying the boat had fired as it approached. It said the tanker was targeted by three missiles. "The private armed security team (PAST) aboard the vessel displayed arms and, as they did, the speedboat occupants opened fire at a distance of 300m-400m," Ambrey said. "The PAST repelled the attack by returning fire. The speedboat further exchanged fire and disengaged." A security source, who asked not to be named, said two missiles were fired; an anti-missile battery brought down one and the second fell into the sea. Ambrey said the tanker had been hailed by an entity claiming to be the Yemeni Navy asking the ship to alter course but a nearby warship advised the vessel to maintain course. Coalition Task Force (CTF) Sentinel, the operational arm of the International Maritime Security Construct (IMSC) that includes navies from the U.S., Britain and others, operates in the area to provide reassurance to commercial shipping. Ambrey also said a Malta-flagged bulk carrier was approached by the speedboat. The Houthi group, based in Sanaa, in the north of a country devastated by years of war, has been targeting vessels it says are Israeli-owned or ships it says are heading to Israel. It has obstructed their passage through the Bab al-Mandab Strait. A senior Houthi official on Tuesday warned cargo ships in the Red Sea to avoid travelling towards Israel, after saying they had hit a Norwegian tanker with a missile earlier in the day. Separately, Britain's Maritime Trade Operations (UKMTO) agency reported that five or six small boats, with machine guns mounted on their bows, followed a ship in the Arabian Sea for about 90 minutes about 90 nautical miles off the Omani coastal town of Duqm. They later left, it said. The UKMTO advised ships to transit with caution and report any suspicious activity. https://www.reuters.com/world/middle-east/gunmen-speadboat-approach-two-vessels-bab-al-mandab-strait-ambrey-2023-12-13/

2023-12-13 17:18

Dec 13 (Reuters) - South Africa's struggling state power company Eskom said on Wednesday it made a 1.6 billion rand ($84 million) profit after tax in the first six months of its financial year to the end of September. The debt-laden utility has this year implemented the worst power cuts on record in Africa's most industrialised economy. "Eskom cautions that despite achieving a profit in the first six months, an after-tax loss of 23.2 billion rand is expected by the end of the financial year," it added in a statement. Eskom cited poor generating plant performance, tariffs which it says do not allow it to fully recover its costs, high debt servicing costs and non-payment by some customers among reasons for the projected full-year loss. ($1 = 19.0557 rand) https://www.reuters.com/world/africa/south-africas-eskom-makes-h1-profit-sees-full-year-loss-2023-12-13/

2023-12-13 17:11

Dec 13 (Reuters) - Pfizer (PFE.N) on Wednesday forecast 2024 sales that could be as much as $5 billion below Wall Street expectations, a move top executives said provided a more reliable view of its COVID-19 business than it had this year, driving shares to a 10-year low. Revenue from Pfizer's COVID-19 vaccine and treatment, which peaked at $57 billion in 2022, are now expected to be $8 billion in 2024, a further drop from the $13 billion analysts' forecast and Pfizer's own lowered view of $12.5 billion for this year. "We want to be conservative," Pfizer Chief Executive Officer Albert Bourla said on a conference call with investors. "We want to be reliable so we won't create uncertainty (again), which was the case, unfortunately, this year." Pfizer used some of its COVID windfall to acquire companies, including a $43 billion deal for cancer drugmaker Seagen it expects to close this week, and began selling a new RSV vaccine. But the recent RSV launch has been disappointing, trailing a rival's shot, and shares have fallen 44% so far this year. In addition, COVID vaccinations in the U.S. have dropped sharply with just about 17% of the eligible population getting the most recent updated boosters due in part to declining concern about the virus, as well as vaccine fatigue. The New York-based drugmaker also forecast 2024 adjusted profit in the range of $2.05 to $2.25 per share, lower than analysts' expectation of $3.16. Pfizer shares closed down another 6.7% on Wednesday, losing nearly $11 billion in market capitalization. U.S. shares of Pfizer's German vaccine partner BioNTech (22UAy.DE) fell 5.5%, while COVID vaccine rival Moderna (MRNA.O) rose 0.7%. "They're in a bad place honestly," said Jeff Jonas, portfolio manager for Gabelli Funds, which owned over 750,000 Pfizer shares as of September, according to LSEG data. Jonas said the company has taken on a lot of debt to do deals like Seagen. But he is skeptical the company has done enough to fully offset lost revenue from drugs expected to face generic competition in coming year. "They're stuck in their ways and then they're not necessarily going to make the type of bold move that they need to reinvigorate R&D," Jonas said of research and development. Seagen is expected to add $3.1 billion to revenue next year. 'A FLOOR FOR 2024 SALES' The lower forecasts come a day after Pfizer said it would reorganize its cancer division to include the Seagen acquisition. It also raised its cost-cut target by $500 million on Wednesday. Pfizer now expects annual revenue in the range of $58.5 billion to $61.5 billion, compared with analysts' average estimate of $63.17 billion, according to LSEG data. The COVID-19 vaccine and antiviral treatment Paxlovid helped Pfizer bring in over $100 billion in revenue in 2022. Pfizer had originally forecast sales of $21.5 million in COVID sales for 2023, but later cut that forecast by more than 40%. The COVID-19 sales targets "likely represent a floor for 2024 sales," said J.P. Morgan analyst Chris Schott. The precipitous drop in COVID product sales had also forced Pfizer to launch a program to cut jobs and expenses, which is now expected to save at least $4 billion a year by the end of 2024. Pfizer said on Tuesday that Chief Commercial Officer Angela Hwang would step down, and the company would reorganize its commercial business, not including oncology, into two divisions, one focused on the United States and the other on the rest of the world. Citi analyst Andrew Baum said Pfizer's management is acting with increasing urgency to address its weak stock performance. However, the absence of promising high-potential pipeline assets makes it difficult for the company with several Pfizer products expected to go off patent in the next few years. https://www.reuters.com/business/healthcare-pharmaceuticals/pfizers-2024-revenue-forecast-below-wall-street-estimate-2023-12-13/