2023-12-05 05:52
BENGALURU, Dec 5 (Reuters) - Taiwan's Foxconn (2317.TW) has cancelled the first shift on Tuesday at its Indian facility that makes Apple (AAPL.O) iPhones following weather disruptions, two sources familiar with the matter said. Foxconn's operations in the facility near the south Indian city of Chennai were likely to resume after the first shift, the sources said. Foxconn and Pegatron (4938.TW) had on Monday halted production of iPhones at their factories near Chennai because of heavy rain as a severe cyclone neared, Reuters had reported. Foxconn and Apple did not immediately respond to Reuters' request for comment. https://www.reuters.com/world/india/foxconn-cancels-first-shift-tuesday-indian-iphone-facility-after-extreme-weather-2023-12-05/
2023-12-05 05:40
DUBAI, Dec 5 (Reuters) - The United States is among at least 60 countries backing a pledge on Tuesday to cut cooling-related emissions by 2050, U.S. State Department officials said at the U.N. climate summit in Dubai. The Global Cooling Pledge would mark the world's first collective focus on energy emissions from the cooling sector. It calls for countries to reduce by 2050 their cooling-related emissions by at least 68% compared to 2022 levels. It's a tough task, given the cooling industry is only expected to grow as temperatures continue to climb. Emissions from both the refrigerants and the energy used in cooling account for about 7% of climate-warming emissions, and energy demand for cooling could triple by 2050. Reuters is first to report the U.S. support, which suggests there could be a process to construct more regulations or incentives for the industry in the United States, and ramp up pressure on other countries to join. The officials declined to be named as the information remained confidential. One official said the United States was keen to work on ways to boost the efficiency of cooling technologies and phase down the use of hydrofluorocarbons, or HFCs, a potent greenhouse gas that is released by air conditioners and refrigerators. In October, the U.S. Environmental Protection Agency set a new rule restricting the use of HFCs beginning from 2025 to 2028, and proposed setting requirements for managing or reusing HFCs and repairing leaky equipment. Kenya was the first to sign on to the Global Cooling Pledge, with at least 59 more countries joining as of Monday afternoon, said Brian Dean of Sustainable Energy for All, a nonprofit agency that is part of a U.N. Environment Programme coalition that developed the pledge. Organizers hope to see at least 80 countries supporting the cooling pledge, given the dangers people face from heatwaves. By contrast, at least 118 countries supported another COP28 pledge to triple renewable energy and double energy efficiency rates by 2030 - commitments that are considered less detailed and less expensive to implement than the cooling goal. India voiced concerns about the pledge to organizers, and if not resolved, it would not join, a government official said Monday, without giving any details. A report from the Lancet medical journal last month estimated that heat stress deaths could quadruple by mid-century. UNEP estimates that global efforts to tackle cooling emissions could avoid the release of up to 78 billion metric tonnes of carbon dioxide equivalent. ___ For daily comprehensive coverage on COP28 in your inbox, sign up for the Reuters Sustainable Switch newsletter here. https://www.reuters.com/sustainability/climate-energy/us-joins-dozens-countries-backing-cop28-pledge-slash-cooling-emissions-2023-12-05/
2023-12-05 05:34
A look at the day ahead in European and global markets from Tom Westbrook Australia's central bank gave investors another reason to stabilise the sliding U.S. dollar on Tuesday: keeping rates on hold, as expected, and sticking to its "data dependent" outlook. Markets have interpreted the Reserve Bank of Australia's stance as dovish and, although the decision contained few surprises, they sold the fact in the Asia session and drove the Aussie briefly back below its 200-day moving average. The broader U.S. dollar index is trading just above its 200-day moving average as it finds support from some ripples of doubt whether the priced-in "soft landing" for the U.S. economy is really achievable. The relative U.S. interest rate outlook right now fits the weaker dollar narrative - futures markets are pricing in bigger rate cuts by the Fed next year than by any other major or emerging market central bank. But will the Fed cut rates by 125 basis points next year? Doubts about that prospect have for now put the brakes on dollar selling. Even if the Fed does go that far, other central banks are sure to lower their policy rates by more than markets are currently predicting. Gold , which shot to a record high in Asia's notoriously thin morning hours on Monday, has recoiled sharply. The focus now turns to U.S. job openings figures due later on Tuesday and the non-farm payrolls figures out on Friday. Resilience on either front might spook the dollar bears. Also ahead in Europe today are final PMI readings and producer prices. Elsewhere in Asia, China's markets slipped deeper into what is shaping up to be a third consecutive year of sharp underperformance compared with global stocks overall. Hong Kong's Hang Seng (.HSI) is down almost 17% in a year when MSCI's gauge of global equities is up roughly 15%, and investors are showing little sign of being lured back in by the low valuations. Tokyo inflation, a reliable proxy for national data, slowed enough in November to perhaps give the Bank of Japan some leeway for a leisurely journey out of its ultra-easy policy. The yen was steady at 147 to the dollar. Key developments that could influence markets on Tuesday: Economics: Eurozone and British final PMIs, Eurozone producer prices, U.S. ISM services survey and job openings https://www.reuters.com/markets/europe/global-markets-view-europe-2023-12-05/
2023-12-05 05:02
SYDNEY, Dec 5 (Reuters) - Australia's central bank held interest rates steady on Tuesday as expected, buying it more time to assess the state of the economy and decide whether to tighten further next year even as the U.S. and Europe are seen as almost certain to ease. Wrapping up its December policy meeting, the Reserve Bank of Australia (RBA) kept rates at a 12-year high of 4.35%, adding economic data received since November - when it hiked by a quarter-point - had been broadly in line with expectations. Markets had wagered heavily on a steady outcome given inflation had eased a little more than expected in October. They slightly pared back the chance of a further rise to 4.6% in the new year to 38% from 43% before the no-change decision. The local dollar extended earlier declines to be down 0.6% to $0.6581 and three-year Australian government bond yields eased 5 basis points to 4.00%. "Holding the cash rate steady at this meeting will allow time to assess the impact of the increases in interest rates on demand, inflation and the labour market," RBA Governor Michele Bullock said. Bullock also stuck with the watered down tightening bias from last month, saying whether further rate hikes are required would depend upon the data and the evolving assessment of risks. It was the RBA's last chance to raise rates before its next meeting in February and provided Christmas relief to mortgage holders, many of whose monthly payments have jumped by more than A$1,000 ($662) a month amid elevated costs of living. "The statement, in our view, was less hawkish than November's and also less hawkish than we expected," Barclays analysts said in a note to clients. "We continue to think the hiking cycle is over, though we do note the bank's data dependent approach means the possibility of another hike after the Q4 inflation print." Those figures are due in late January, ahead of the next RBA meeting on Feb. 6. Bullock has sounded hawkish in recent public comments, warning that inflation has become increasingly driven by domestic demand, requiring a more "substantial" response from interest rates. At present, inflation is not forecast to return to the bank's 2% to 3% target until late 2025. LIMITED INFORMATION The RBA saw the monthly inflation report for October, which fell by more than expected, as insufficient to provide an update on services. It expects wages, which rose at a record pace last quarter, to ease from here, and the labour market remains tight despite signs of easing. Rates have now risen by 425 basis points since May last year in the most aggressive cycle on record, but the size of hikes has lagged its overseas counterparts because of the central bank's attempt to preserve jobs gains. "I think their hope would be that the November hike has stamped out some of those inflation concerns at least in the short term. And really the global story too probably works in their favour," said Madeline Dunk, an economist at ANZ. Markets are expecting early and aggressive rate cuts from the U.S. Federal Reserve and the European Central Bank in 2024, with more than 100 basis points priced in, while wagering the RBA could just cut by 15 basis points late next year. "If we see a continuing momentum over there (Fed rate cuts), it does support the case that they can be done at 4.35%. But I think they would want to keep the option open just in case," Dunk said of the RBA. (A$1 = $0.6617) https://www.reuters.com/markets/australias-central-bank-holds-cash-rate-435-2023-12-05/
2023-12-05 03:49
SHANGHAI, Dec 5 (Reuters) - China's major state-owned banks were busy buying the yuan in currency markets on Tuesday to prevent it from weakening too much, two sources with knowledge of the matter said, with buying intensifying after rating agency Moody's cut China's outlook to negative in the afternoon. State banks were spotted swapping yuan for U.S. dollars in the onshore swap market and quickly selling those dollars in the spot market to support the yuan throughout the whole trading session, the sources said. But the banks' dollar selling became very forceful after the Moody's statement, one source said. China state banks have in the past year often sold dollars to slow the yuan's decline against the U.S. dollar. Markets have often seen the moves as a sign of official attempts to relieve pressure on the currency, though banks could also be trading for their own accounts. Moody's on Tuesday cut its outlook on China's government credit ratings to negative from stable, citing expectations of lower medium-term economic growth and risks from a deep correction in the country's vast property sector. With China's economy sputtering and the U.S. dollar surging until recently, the yuan has had a volatile year, having weakened 6.14% to the dollar at one point before giving back much of the losses on recent views that U.S. interest rates have peaked. The yuan strengthened 2.55% in November, its best month this year, but it is still down 3% year-to-date. However, some analysts said the impact on the yuan from the Moody's decision will not be sustainable. "The issues plaguing the property sector are not new," said Khoon Goh, head of Asia research at ANZ. "The steps taken by the authorities recently should see a bottom soon. The upcoming U.S. data will be more important for the near-term direction of the yuan," Goh said, referring to a spate of government measures to revive the real estate market. https://www.reuters.com/world/china/chinas-state-banks-seen-swapping-selling-dollars-yuan-sources-2023-12-05/
2023-12-05 03:08
MUMBAI, Dec 5 (Reuters) - The Indian rupee is likely to decline slightly on Tuesday after U.S. Treasury yields recovered from their lowest level in 3 months and the dollar index ticked higher. Non-deliverable forwards indicate the rupee will open at around 83.39-83.40 to the U.S. dollar compared with 83.3650 in the previous session. The rupee had fallen to its lifetime low of 83.42 on Nov. 10. The 10-year U.S. Treasury yield rose 6 basis points in New York to 4.28% and last quoted slightly lower in Asia. The dollar index was steady at 103.6 after having risen to its highest level in a week overnight. While there were no clear triggers for the move higher, analysts reckon that it was a partial reversal of sharp drops seen over the last 3 weeks as investors wagered on the U.S. Federal Reserve cutting interest rates in 2024. Fed futures are now pricing in slightly over 100 basis points of rate cuts in 2024, beginning most likely from March or May. The rupee may see "another session with a narrow range," as traders remain shy of pushing the currency lower due to expectations that the Reserve Bank of India (RBI) will likely intervene to defend the rupee. Asian currencies were mostly lower with the Korean won, down 0.5%, leading losses. The rupee is expected see some volatility this week due to a series of U.S. economic data and RBI's monetary policy decision, Dilip Parmar, a foreign exchange research analyst at HDFC Securities said. Investors will keep a keen eye on a crucial U.S. labour market report on Friday, which could offer cues on how well placed the market's expectations on the Fed's policy rate trajectory are. The RBI will deliver its monetary policy decision on Friday and is widely expected to hold rates steady. KEY INDICATORS: ** One-month non-deliverable rupee forward at 83.45; onshore one-month forward premium at 6.5 paisa ** Dollar index up at 103.64 ** Brent crude futures up 0.1% at $78.1 per barrel ** Ten-year U.S. note yield at 4.26% ** As per NSDL data, foreign investors bought a net $685.9 mln worth of Indian shares on Dec. 1 ** NSDL data shows foreign investors bought a net $131 mln worth of Indian bonds on Dec. 1 https://www.reuters.com/world/india/india-rupee-inch-lower-recovery-us-dollar-bond-yields-2023-12-05/
