2023-11-24 22:16
ABUJA, Nov 24 (Reuters) - Nigeria's economy grew by 2.54% in the third quarter, largely steady from the 2.51% in the second quarter, data showed on Friday, as the oil sector contracted at a slower pace while the impact of government reforms aimed at boosting output were yet to take effect. Central bank Governor Olayemi Cardoso, who outlined his policies at a meeting with bankers late on Friday, said that Africa's largest economy could grow by 3.9% in the fourth quarter as government reforms take effect. President Bola Tinubu promised during his inauguration in May to expand the economy by at least 6% a year. Cardoso said the economy could expand in size to $1 trillion over the next seven years. Tinubu has vowed to lift barriers to investment, create jobs and tackle insecurity. He has embarked on Nigeria's boldest reforms in decades to try to boost output, which has been sluggish for about a decade. But they have yet to impact growth. "The performance of the GDP in the third quarter of 2023 was driven mainly by the services sector, which recorded a growth of 3.99% and contributed 52.7% to the aggregate GDP," the National Bureau of Statistics (NBS) said. The NBS said the agriculture and industrial sectors, which create jobs, contributed less to GDP in the third quarter, compared with the same quarter a year ago. Nigeria's dominant oil sector, which accounts for the bulk of government revenue and 90% of foreign-exchange reserves, contracted 0.85% in the third quarter, a rise of 12.6% from the second quarter when the sector shrank by 13.43%. Daily average oil output (NGOIL=ECI) stood at 1.45 million barrels per day (bpd) in the three months to September, up from the 1.20 million bpd in the same period last year. Tinubu in May scrapped a costly but popular petrol subsidy and lifted currency controls, which he said was to save the country from going under. But his actions have worsened inflation currently in double-digits, fuelling anger and frustration for a population grappling with a cost of living crisis. Tinubu has been under pressure from unions to offer relief to workers. He has travelled to Asia, Europe, Middle East and the U.S. to promote investments to try to revive the economy rather than relying on borrowing. https://www.reuters.com/world/africa/nigerias-q3-gdp-up-254-yy-stats-office-2023-11-24/
2023-11-24 20:48
BUENOS AIRES, Nov 24 (Reuters) - Argentine former central banker Luis Caputo, frontrunner to be the new economy minister, met local and international bank officials on Friday to lay out the economic plans of President-elect Javier Milei, three sources and a banking group said. The meeting at the La Rural conference center in Buenos Aires comes as Milei, who has pledged "shock therapy" for the embattled economy, races to put together his economic team. Caputo has been tipped as a front-runner for the role. In the meeting, however, Caputo declined to confirm that he would be the new economy minister, two of the sources said. Milei has not yet confirmed any appointment. However, signs that libertarian outsider Milei is leaning towards a more orthodox economic team and policies have spurred markets this week, with bonds up almost 14% and equities over 40% since he won a run-off election last Sunday. Caputo emphasized the idea of an abrupt economic adjustment, needed to tamp down inflation nearing 150%, head off a looming recession, undo an array of capital controls and rebuild net reserves seen at negative $10 billion. "Our approach is fiscal and monetary shock from day one. The roadmap is orthodox and without crazy things," Caputo told the assembled bank representatives, according to a senior banking source who attended the meeting. Caputo, former finance minister and central bank chief during ex-president Mauricio Macri's conservative government, is seen as a more orthodox pick for libertarian Milei's new administration, which takes office on Dec. 10. The local ADEBA banking association confirmed the meeting. "It was a meeting in which we exchanged opinions on the challenges of the economy and the way to address them," Javier Bolzico, president of ADEBA, told Reuters. "The meeting was very positive, Caputo emphasized fiscal balance as the basis of the model and a comprehensive and market approach to the BCRA's remunerated liabilities. Caputo's vision gave us peace of mind and confidence." Milei's team did not respond to a request for comment. Macri's conservative PRO party backed Milei for the run-off vote and his allies are pushing to get positions in the Cabinet. Caputo did not provide details on how Milei's government plans to address public spending nor what it aims to do with the central bank's huge pile of Leliq short-term notes, which Milei has targeted because they expand money supply of local pesos. Caputo said Milei's government would lift currency controls rapidly, the first source and a second banking source briefed on the meeting said, but it would not happen immediately. He added no dollarization was planned in the short-term, as fiscal and monetary stabilization were need, the first source said. "First you need a stabilization program," Caputo said, according to the first source present in the meeting. Milei had made shutting the central bank and dollarizing the economy key planks of his campaign, but admitted these things will take time given the economic crisis. Earlier on Friday, though, he said shutting the central bank was "non-negotiable". Caputo also told the bank representatives that addressing inflation forcefully was a top priority, though did not provide details on how the future government would tame prices. The second bank source said Caputo had discussed the need to fully attack inflation and lower the Leliq pile, though did not have details on how this would be done. "Given his knowledge of the market, he is one of those responsible for gauging the position of the banks before the new government," a third bank source who confirmed the meeting said. https://www.reuters.com/world/americas/argentinas-economy-chief-frontrunner-pitches-mileis-shock-therapy-banks-sources-2023-11-24/
2023-11-24 20:26
Nov 24 (Reuters) - The Panama Canal, one of the world's main maritime trade routes, announced on Friday it is launching a special auction slot on Saturday, as it battles a severe drought that has forced it to reduce daily ship crossings. "The purpose of this measure is to provide greater opportunity of obtaining a slot for vessels in the Panamax Locks that have been waiting in the transit queue for an extended period," the canal's authority said in a statement. Water levels in Gatun Lake, the rainfall-fed principal reservoir that floats ships through the Panama Canal's lock system, have declined to unprecedented levels for this time of year. Authorities last month announced slot reductions starting Nov.3 set to last until next February 1. The naturally occurring El Nino climate pattern associated with warmer-than-usual water in the central and eastern tropical Pacific Ocean is contributing to Panama's drought. https://www.reuters.com/markets/commodities/panama-canal-announces-special-auction-slot-starting-saturday-2023-11-24/
2023-11-24 19:59
RIO DE JANEIRO, Nov 24 (Reuters) - Brazil's state-run oil company Petrobras laid out its 2024-2028 strategic plan on Friday, seeking to "revitalize" the firm and start the process of energy transition, CEO Jean Paul Prates said. The company plans to invest around $102 billion during the period, which Prates called one of the largest investment plans in the company's history and a reversal in direction for Petrobras, now under Luiz Inacio Lula da Silva's presidency. "Previously you saw a company with no future, not investing and paying exorbitant dividends," said Prates. "Now we are with our eyes and mind on the future." Prates said Petrobras has a duty to expand its role in Brazil and become an energy company, and pointed to new investments into fertilizers and renewable energy. By the end of 2024, Petrobras will resume operations at one fertilizer plant and by 2028 is set to complete construction on a second one, marking its return to the sector. It will also work with firms it leased two of its other fertilizer plants to, helping them regain their profitability. "Getting back again into fertilizers is not merely a return to the past, but it's looking at the future, as green fertilizers will be products of the future," said Prates. Investment in fertilizers gained more strategic importance for Brazil and Petrobras after a supply crisis was caused by the war in Ukraine. The firm also said it will invest $5.2 billion in solar and wind power with an initial focus on onshore plants, while researching the development of offshore wind in Brazil. When asked whether Petrobras was studying buying back part of the Mataripe refinery, formerly known as Rlam and sold to Abu Dhabi's Mubadala under previous management, Prates said it was a possibility. "It's a possibility, but this is one of those issues that we can't talk about...", he said, adding that the firm is talking to Mubadala about several matters, but a potential repurchase of the refinery is "not the main thing." https://www.reuters.com/markets/commodities/brazils-petrobras-plans-revitalize-company-with-102-bln-investment-2023-11-24/
2023-11-24 19:33
Nov 24 (Reuters) - The Canada Energy Regulator (CER) has ordered the company building the Trans Mountain oil pipeline expansion (TMX) to appear at an oral hearing on Monday, as the regulator weighs whether to approve a variance request from the project. Trans Mountain Corp, which is owned by the Canadian government, last month applied for a variance on a section of pipeline between Hope and Chilliwack, British Columbia, after encountering "very challenging" construction conditions due to the hardness of the rock it needs to drill through. The company wants to install a 30-inch-diameter (76 cm) pipe instead of a 36-inch (91 cm) pipe as planned, which would shorten the installation schedule by approximately 55-60 days. In a letter dated Nov. 23, the CER said it requires "further information or justification" regarding Trans Mountain's submissions so far, and will hold an oral hearing in Calgary on Monday. Trans Mountain had asked the regulator to make a decision on the variance request by Nov. 30 to "advance the timely completion" of the expansion project. TMX will ship an extra 590,000 barrels per day of crude from Alberta to Canada's Pacific Coast. The C$30.9 billion project has been plagued by cost overruns and regulatory delays. The expanded pipeline is scheduled to start operating late in the first quarter of 2024, and any further construction hold-ups risk delaying the start date. Earlier this month TMX was ordered to stop work for nearly two weeks after regulators found several environmental non-compliance issues in a wetland area near Abbotsford, British Columbia. In September, the CER approved a route deviation request from TMX for a section of pipeline near Kamloops, despite opposition from local Indigenous groups. The CER said no other parties had expressed concern about TMX's latest variance request. https://www.reuters.com/business/energy/trans-mountain-faces-regulatory-hearing-pipeline-variance-request-2023-11-24/
2023-11-24 18:40
LONDON, Nov 24 (Reuters) - Russia's Nornickel (GMKN.MM) will pay $18 million to pass its 50% stake in Nkomati nickel mine in South Africa to its partner African Rainbow Minerals (ARM) (ARIJ.J), ARM said on Friday, ending years of Nornickel's attempts to exit Africa. Nickel prices in London are heading for a 46% fall this year, the largest slump since the financial crisis in 2008, due to rising production in Indonesia and a build-up of bets on even lower prices. Nkomati was part of Nornickel's $6.5 billion purchase of LionOre Mining with assets in Africa and Australia in 2007 after outbidding Xstrata. It was the largest foreign acquisition by a Russian company at that time. By 2013, the metals prices had fallen and Nornickel, the world's top palladium producer and a major refined nickel producer, started selling LionOre's legacy to focus on its lucrative mines in the Arctic home territory in Russia. "With this agreement Nornickel underscores its commitment to developing its unique resource base and Tier-1 assets portfolio in Russia as well as its long-term strategy to exit non-Tier-1 assets," the Russian miner said in a statement. The deal is expected to close in 2024. ARM will buy the stake for 1 million rand ($54,440) but will also take over the environmental liabilities of the Nkomati mine - together with the share of Nornickel's subsidiary - with a 325 million rand ($18 million) contribution from the subsidiary, ARM said. Nkomati has been on maintenance after it stopped mining two and a half years ago amid low nickel prices. ARM, whose profit has been hit by South Africa's rail logistics problems on top of weaker metals prices, said that the mine's prospects continue to be challenging due to maintenance costs and the uncertain nickel market outlook. ($1 = 18.3689 rand) https://www.reuters.com/markets/commodities/nornickel-will-pay-18-mln-drop-its-stake-nickel-jv-south-africa-2023-11-24/
