2023-12-06 00:04
BRUSSELS, Dec 6 (Reuters) - Top EU officials will raise an array of concerns from Russia's invasion of Ukraine to trade irritants in a summit with Chinese leaders on Thursday that is expected to be long on firm words, but short on outcomes. European Commission President Ursula von der Leyen, European Council President Charles Michel and EU foreign policy chief Josep Borrell meet Chinese President Xi Jinping in the morning and Premier Li Qiang in the afternoon on their one-day visit to Beijing. There will be no joint statement from Thursday's talks, EU officials said, and they do not expect concrete outcomes from the first in-person EU-China summit since 2019. "There's not a single outstanding deliverable that will be crowning the summit," said one EU official By contrast, Xi's meeting with U.S. President Joe Biden in California in November did produce agreements, although simmering differences remained, particularly over Taiwan. The European Union will also have questions on Chinese intentions towards Taiwan, but its focus will be on Russia's invasion of Ukraine. The European Union wants Beijing to use its influence on Russia to stop the war, will stress the need to respect sanctions on Russia and will raise the issue of growing arms supply from North Korea to Russia. The bloc is also concerned about what it considers "imbalanced" economic relations, saying its near 400 billion euro ($431.7 billion) trade deficit with China reflects restrictions on EU businesses. China will be expected to ask about an EU anti-subsidy investigation into Chinese electric vehicles and about the EU's "de-risking" policy to reduce its reliance on Chinese imports, particularly of critical raw materials. EU officials say the two sides could cooperate more on action to combat climate change and to promote biodiversity. They also point to a series of dialogues set up on macro-economics and trade. These include the EU's planned CO2 emissions import tariff and the circular economy, a possible increase in the number of food products whose names would be protected - such as only applying the term "feta" to a specific Greek cheese. "These are not per se major summit deliverables ... but in certain areas there are mutual interests and we can make a difference by working technically and practically together," an EU official said. ($1 = 0.9265 euros) https://www.reuters.com/world/eu-issue-firm-words-china-summit-with-limited-expectations-2023-12-06/
2023-12-05 23:55
Dec 5 (Reuters) - Bitcoin rose 5% to $44,083 at 2149 GMT on Tuesday, adding $2,098 to its previous close. Bitcoin, the world's biggest and best-known cryptocurrency, is up 66.1% from the year's low of $26,533 on Oct. 11. Ether , the coin linked to the ethereum blockchain network, rose 1.4% to $2,275.7 on Tuesday, adding $31.9 to its previous close. https://www.reuters.com/technology/bitcoin-rises-5-44083-2023-12-05/
2023-12-05 23:32
Take-Two Interactive falls on 'GTA VI' trailer release CVS Health climbs after upbeat annual revenue outlook Indexes: S&P 500 -0.06%, Nasdaq +0.31%, Dow -0.22% Dec 5 (Reuters) - Wall Street finished mixed on Tuesday after fresh employment data bolstered bets that the U.S. Federal Reserve will cut interest rates as soon as March. Wall Street's most valuable companies rose as Treasury yields dipped to multi-month lows. Nvidia (NVDA.O) and Apple (AAPL.O) rose more than 2%, while Amazon.com (AMZN.O) and Tesla (TSLA.O) gained more than 1%. Most S&P 500 sector indexes ended down after data showed U.S. job openings dropped in October to the lowest level since early 2021, indicating that the labor market was easing. "As interest rates rise and as demand slows, companies are pulling back on job openings, which is essentially what the Fed wants," said Sam Stovall, chief investment strategist at CFRA Research in New York. "The Fed probably is done raising rates, and the only question outstanding is when they start to cut," Stovall said. Another report showed U.S. services sector activity picked up in November. The S&P 500 declined 0.06% to end the session at 4,567.18 points. The Nasdaq gained 0.31% to 14,229.91 points, while Dow Jones Industrial Average declined 0.22% to 36,124.56 points. The small-cap Russell 2000 index (.RUT) fell 1.4%, ending a four-day winning streak. Volume on U.S. exchanges was relatively heavy, with 11.9 billion shares traded, compared to an average of 10.6 billion shares over the previous 20 sessions. Of the 11 S&P 500 sector indexes, eight declined, led lower by energy (.SPNY), down 1.7%, followed by a 1.37% loss in materials (.SPLRCM). U.S. stock trading this week has been uneven after the S&P 500 rebounded nearly 9% in November. The index on Friday touched a four-month intra-day high. Stock market investors widely expect the Fed will keep rates unchanged at its meeting next week. Interest rate futures also suggest a 65% probability of a rate cut by the Fed's March meeting, according to the CME Group's FedWatch tool. On Friday, the more comprehensive non-farm payrolls report for November will offer greater clarity on the state of the labor market. Global markets will be swayed by greater volatility in 2024 as the Fed cuts benchmark interest rates fewer times than futures markets are pricing in, strategists at the BlackRock Investment Institute predicted in a panel discussion. Take-Two Interactive Software (TTWO.O) dipped 0.5% after a trailer of the latest installment of its best-selling "Grand Theft Auto" videogame franchise was released. CVS Health (CVS.N) jumped 3.7% after forecasting 2024 revenue above Wall Street estimates, as the insurer expects to benefit from its expansion into health services. Declining stocks outnumbered rising ones within the S&P 500 (.AD.SPX) by a 4.5-to-one ratio. The S&P 500 posted 15 new highs and no new lows; the Nasdaq recorded 83 new highs and 69 new lows. https://www.reuters.com/markets/us/futures-signal-further-losses-wall-st-ahead-jobs-data-2023-12-05/
2023-12-05 23:22
Dec 5 (Reuters) - Suncor Energy (SU.TO) on Tuesday forecast higher production for 2024 compared with 2023, as the Canadian energy company bets on strong performance from its Fort Hills asset. The company also said its 2024 capital expenditure is expected to be between C$6.3 billion ($4.64 billion) and C$6.5 billion, higher than its current-year forecast of C$5.4 billion-C$5.8 billion. The Calgary, Alberta-based company expects upstream production to be between 770,000 and 810,000 barrels per day (bpd) next year, 7% higher compared with its 2023 production estimate. Fort Hills, an open-pit mine, has struggled with operational challenges since starting production in early 2018. Last year, Suncor forecast 5% lower gross production and higher operating costs per barrel at Fort Hills over the next three years as a result of long-term improvement plans for the project. Suncor added on Tuesday that its Fort Hills three-year improvement plan was on target, "with opportunities to further increase value". Fort Hills' cash operating costs for the next year is expected to be between C$33 per barrel and C$36 per barrel, the company said. Global oil prices have scaled back compared to last year but still remain at a level when companies can drill profitably. "Suncor's 2024 guidance reflects our priority to deliver improved shareholder returns through focused cost reductions, increased upstream production and a disciplined capital investment program, all targeted at improving the company's free funds flow per share," CEO Rich Kruger said in a statement. The company also expects refining utilization of 92% to 96% in 2024, and throughput between 430,000 bpd and 445,000 bpd. ($1 = 1.3587 Canadian dollars) https://www.reuters.com/business/energy/suncor-energy-expects-higher-production-2024-2023-12-05/
2023-12-05 23:20
SHANGHAI/BEIJING, Dec 6 (Reuters) - Gold buyers in China are getting younger, as a property market downturn, weakening stocks and currency and low bank deposit interest rates have left them with dwindling options to save for rainy days in a sputtering economy. The trend underscores heightening uncertainty about growth prospects in the world's second-largest economy, which has not recovered from COVID-19 lockdowns as fast as consumers and job hunters had expected. "The employment market has not been very good," said Linda Liu, 26, who works for a pharmaceuticals company in Beijing, but worries about job stability. "Buying gold makes me feel better." "I want gold jewellery instead of diamonds for my wedding." China is the world's top buyer of physical gold and analysts say this year it has been an increasingly important driver behind a rally in global spot gold prices , which hit all-time highs on Monday. Analysts expect Chinese demand for the safe haven metal to remain high as economic growth grinds lower in coming years and foreign investment outflows weigh on the yuan, while the property market is still looking for a bottom. "Incomes are not really appreciating, real estate is not really appreciating, the stock market is not really appreciating," said Jacques Roizen, managing director of consulting at Digital Luxury Group in Shanghai. "Gold is a little bit of a unicorn in this environment." Gold and silver jewellery have been among the best performing consumer goods in China this year, with a 12% rise in value year-on-year in January-October, outpaced only by garments, according to the latest retail sales data. A Chinese consumer survey released by jewellery firm Chow Tai Fook (1929.HK) in late October found 70% of consumers aged between 18 and 40 intend to purchase pure gold jewellery. While China has long been a top global consumer of gold jewellery, Chow Tai Fook Jewellery Group managing director Kent Wong said that traditionally, customers in China have been older. "We've found people aged 18 to 24 have started to buy gold jewellery, and we were very surprised by this," Wong said. Chinese social media discussions about steady gold accumulation abound, with users recommending small jewellery and marble-like gold "beans" as small as one gram that could be purchased even by those with low incomes for 450 to 550 yuan ($63 to $77). Beijing student Nadia Qi, 21, has spent as little as she could of her pocket money on daily necessities while spending more than $2,000 on gold bars and jewellery so far this year. "The only thing that I can trust and makes me feel relatively safe now is investing in gold," said Qi, who plans to buy at least 20 grams a year for rainy days. "The deposit rate is way too low, and investing in the stock market is too risky." The one-year deposit rate at major Chinese banks ranges from about 1.5% to 1.8% and has declined in recent months. China and India, the world's two biggest gold buyers, together account for more than half of total global demand. In China, gold trades at a premium to the global spot price. That spread has been $25 to $35 per ounce in the past week, down from a record high of $121 in mid-September, but still above its usual $5 to $15 range. Office worker Yang, 38, from the central Hunan province, is not discouraged by the rise in gold prices, arguing "the yuan has been depreciating, financial investment is too risky ... and the property market remains disappointing." "There are not many choices left," said Yang, who only gave her surname for privacy reasons. "Gold is like hard currency, and this is especially true in the face of mounting geopolitical uncertainties for the moment." ($1 = 7.1424 Chinese yuan renminbi) https://www.reuters.com/markets/commodities/young-chinese-spurn-traditional-investments-favour-gold-2023-12-05/
2023-12-05 22:55
Dec 5 (Reuters) - The Canada Energy Regulator (CER) on Tuesday denied a request from the Trans Mountain Expansion (TMX) project for a variance on a section of oil pipeline under construction in British Columbia, a decision that could delay the 590,000 barrel-per-day (bpd) expansion. Trans Mountain had asked to be allowed to install smaller diameter pipe in a 1.4-mile (2.3-km) section of the oil pipeline's route after encountering "very challenging" drilling conditions due to the hardness of the rock in a mountainous area between Hope and Chilliwack. The CER denied the variance, according to a letter posted on its website. The regulator said it would give reasons as soon as possible, but had initially issued the decision without reasons because Trans Mountain had asked for an expedited process. At a hearing on Nov. 27, Trans Mountain representatives said installing the smaller pipe would save 59 days of construction time and keep the expansion on track for a start date late in the first quarter of 2024. Denying the variance request risked delaying the start date, and drilling a wider section for the larger diameter pipeline to pass through was "unpredictable," Trans Mountain said. The CER decision is yet another setback for the troubled expansion project, intended to triple shipments of crude from Alberta to Canada's Pacific coast to 890,000 bpd once it starts operating. Oil market participants in Calgary said the discount on Canadian crude to U.S. benchmark crude widened as a result of the decision. TMX is due to start shipping oil by the end of March 2024, but a string of construction-related hurdles have fueled concerns the expansion could be delayed. Trans Mountain, a Canadian government-owned crown corporation, said in a statement it was awaiting reasons for the CER's decision. "Construction on the Trans Mountain Expansion Project is now more than 97% complete," a spokesperson added. The C$30.9 billion ($22.78 billion) project, first proposed by Kinder Morgan (KMI.N) in 2012, has been beset by years of regulatory delay and cost over-runs and was bought by the Canadian government in 2018 to ensure it was built. https://www.reuters.com/markets/commodities/canada-regulator-denies-trans-mountain-expansion-project-variance-request-2023-12-05/
