2023-11-22 06:45

Q4 net loss at 2 billion euros Proposes unchanged dividend of 0.15 euros per share Shares rise to 7-week high on positive free cash flow FRANKFURT/ESSEN, Germany, Nov 22 (Reuters) - Germany's Thyssenkrupp on Wednesday announced a 2.1-billion-euro ($2.3 billion) impairment on its steel unit due to a "gloomy" outlook for the sector, highlighting the challenge in efforts to win Czech energy group EPH as a co-owner for the business. Still the industrial conglomerate posted its first positive free cash flow before mergers and acquisitions, a key gauge for investors, in seven years, sending its shares to a 7-week high. Thyssenkrupp shares rose as much as 7.5% after the group said free cash flow before M&A came in at 363 million euros and proposed a stable dividend of 0.15 euros per share. Shares were still up 6.4% higher at 1041 GMT. As a result of the impairment, Thyssenkrupp, which has been trying to divest its steel division for several years, posted a 2 billion euro net loss for the fourth quarter, while adjusted operating profit fell 45% to 88 million euros. "To put it bluntly, we are not earning enough money," Thyssenkrupp CEO Miguel Lopez said during the company's annual press conference. "There are clear expectations of us to finally get a handle on the situation." Lopez, who took over the helm in June, has therefore launched APEX, a performance programme that is expected to have a positive impact of 2 billion on the group's adjusted EBIT, and is hoping to finally divest the group's Steel Europe division. Thyssenkrupp - which apart from steel, builds submarines, car parts and operates a large materials trading business - said it was in constructive and open-ended talks with EPH about a potential 50-50 steel joint venture. EPH, controlled by Czech billionaire Daniel Kretinsky, would support Thyssenkrupp Steel Europe with its energy expertise in any tie-up, Thyssenkrupp said, adding all co-determination and collective bargaining agreements would remain in place. Thyssenkrupp last month flagged a marked deterioration in the steel market, adding optimistic assumptions had been dampened by a mix of economic weakness in Germany and other markets as well as higher raw materials and energy costs. Cheap Chinese steel imports into Europe have been an additional headache, along with the fact that Asian rivals do not have to bear the costs of CO2 emissions, which puts local players at a disadvantage. Following the impairment, Thyssenkrupp still values Steel Europe at 3.6 billion euros while pension liabilities tied to the business came down further to 2.6 billion, Chief Financial Officer Klaus Keysberg said. ($1 = 0.9168 euros) https://www.reuters.com/business/thyssenkrupp-posts-23-bln-impairment-steel-division-2023-11-22/

2023-11-22 06:40

NEW YORK, Nov 22 (Reuters) - U.S. stocks ended higher on Wednesday, led by interest rate-sensitive megacaps, while the dollar bounced back from a 2-1/2-month low as economic data suggested the labor market is not cooling as quickly as markets, or the Federal Reserve, might prefer. All three major U.S. stock indexes ended up ahead of the U.S. Thanksgiving holiday on Thursday, with tech and tech-adjacent momentum stocks providing much of the lift. "It's a standard day-before-Thanksgiving rally, with light volume and a moderately upward bias," said Ryan Detrick, chief market strategist at Carson Group in Omaha. "But really, that's kind of a microcosm for this entire year." After Tuesday's closing bell, chipmaker Nvidia (NVDA.O) reported revenue well above Wall Street expectations, but its shares shed 2.5% due to the company's downbeat China sales outlook. A spate of economic data - including jobless claims, durable goods and consumer sentiment - suggested that the economy is softening after about 20 months of policy tightening from the Fed, but remains resilient enough to potentially avoid recession. Market participants have begun to shift their focus to the timing of the Fed's first rate cut. "We can argue over when the potential first cut will come, but the bottom line is that the Fed has likely stopped hiking," Detrick added. "So it will no longer be a headwind for equities going into next year." The Dow Jones Industrial Average (.DJI) rose 184.74 points, or 0.53%, to 35,273.03, the S&P 500 (.SPX) gained 18.43 points, or 0.41%, to 4,556.62 and the Nasdaq Composite (.IXIC) added 65.88 points, or 0.46%, to 14,265.86. European stocks hit a two-month high, while a gauge of euro zone volatility (.V2TX) dipped to its lowest level since July. The pan-European STOXX 600 index (.STOXX) rose 0.30% and MSCI's gauge of stocks across the globe (.MIWD00000PUS) gained 0.14%. Emerging market stocks lost 0.56%. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) closed 0.46% lower, while Japan's Nikkei (.N225) rose 0.29%. The greenback rebounded from a 2-1/2 month low after the jobless claims data landed well below consensus. The dollar index (.DXY) rose 0.31%, with the euro down 0.2% to $1.0887. The Japanese yen weakened 0.80% versus the greenback at 149.60 per dollar, while Sterling was last trading at $1.2492, down 0.36% on the day. Benchmark Treasury yields wobbled after fairly robust jobless claims data raised the question as to whether a market that expects the Fed to begin cutting interest rates as early as June 2024 is being overly optimistic. Benchmark 10-year notes last rose 2/32 in price to yield 4.41%, from 4.418% late on Tuesday. The 30-year bond last rose 19/32 in price to yield 4.5446%, from 4.58% late on Tuesday. While Wall Street's rally was modest but broad-based, energy stocks (.SPNY) were the sole decliner among the S&P 500 11 major sectors, falling in tandem with crude prices . Oil tumbled as much as 5% earlier in the session after the OPEC+ group of oil producing nations postponed their scheduled Sunday meeting, raising questions about crude production cuts. But crude prices settled well above the day's lows. "Clearly the news from OPEC caused a 'sell first, ask questions later' mentality, but (oil prices) have bounced off the morning lows and cooler heads have prevailed," Detrick said. "The truth is no one knows what OPEC is up to." U.S. crude dipped 0.86% to settle at $77.10 per barrel, while Brent settled at $81.96, down 0.59% on the day. Gold prices dipped below the key $2,000 per ounce level in opposition to the dollar's strength. Spot gold dropped 0.4% to $1,989.79 an ounce. https://www.reuters.com/markets/global-markets-wrapup-1-2023-11-22/

2023-11-22 06:26

US weekly jobless claims fall Dollar rebounds from 2-1/2-month lows Gold, platinum, palladium eye worst day in 12 Nov 22 (Reuters) - Gold prices fell below the key $2,000 per ounce level on Wednesday as the U.S. dollar rebounded from lows and Treasury yields pared losses, while expectations that the Federal Reserve will pause rate hikes limited the slide in bullion. Spot gold was down 0.4% at $1,991.16 per ounce by 3:05 p.m. ET (2005 GMT) and set for its biggest daily decline since Nov. 10. U.S. gold futures settled 0.4% lower at $1,991.30. "The dollar index has rallied to its daily highs and that's limiting some buying interest in gold," said Jim Wyckoff, senior analyst at Kitco Metals, adding that conflicting market forces are making for a steady holiday-type trade. The dollar index rose 0.3% against its rivals, while Treasury yields pared losses after a strong initial jobless claims data unsettled a market that expects the Federal Reserve to start cutting rates around June as the U.S. economy slows. Lower interest rates typically boost gold prices as they reduce the opportunity cost of holding non-yielding assets. Bullion scaled a three-week high of $2,007.29 in the previous session. "The increase in the markets expectations for Fed cutting cycle to commence earlier in 2024 has been the prime force driving gold prices higher over the last week," said Daniel Ghali, commodity strategist at TD Securities. Fed officials agreed at their last policy meeting that they would proceed "carefully" and only raise interest rates if progress in controlling inflation faltered, minutes of the Oct. 31-Nov. 1 gathering showed. In other metals, spot silver fell 0.4% to $23.66 per ounce. Platinum fell 1.2% to $923, while palladium slipped 2% to $1,056.91, both eyeing their biggest daily decline since Nov. 10. https://www.reuters.com/markets/commodities/gold-eases-below-2000-mark-dollar-halts-slide-2023-11-22/

2023-11-22 06:25

MUMBAI, Nov 22 (Reuters) - India's central bank Governor Shaktikanta Das on Wednesday cautioned the country's lenders against "all forms of exuberance" days after tightening rules for consumer loans. While credit growth is accelerating, banks and non bank finance companies (NBFCs) need to ensure lending to individual categories is "sustainable", Das said at an event in Mumbai. "All forms of exuberance must be avoided." Last week, the Reserve Bank of India (RBI) asked banks to set aside more capital against personal loans and lending via NBFCs on concerns that soaring demand for small-ticket consumer credit could lead to a build-up of risk. The tightening of lending norms is expected to push up borrowing costs and dent consumer loan growth, which has been rising at nearly double the pace of overall bank credit. "These measures are pre-emptive in nature; they are calibrated and targeted," Das said on Wednesday. There is a certain amount of exuberance visible in the pricing of loans in some categories, said P.R. Seshadri, managing director and CEO of South Indian Bank. "This is a little alarming. We need to be paid for the risk that we are taking," he said, without elaborating on the loan segments where such concerns have emerged. Right now, the (credit) environment looks relatively risk free, but that may not always be the case, KVS Manian, whole-time director at Kotak Mahindra Bank, said. "Pricing is not the only reason for calling it (loan growth) exuberant; it’s also that banks can put on assets too fast. That’s what may also be termed as exuberance," he said. Das on Wednesday also asked lenders to be watchful of a buildup of stress due to new lending models. "Banks and NBFCs need to be careful in relying solely on pre-set algorithms" for taking lending decisions, he said. The RBI last week did not tighten capital norms for home loans, vehicle loans and gold loans. The central bank does not currently see signs of stress in housing or vehicle loans, the governor said on Wednesday. However, he flagged risks that may emerge from the inter-connectedness between banks and NBFCs, and asked non-bank lenders to widen their sources of funding. The governor also said that so-called micro lenders, some of which have high interest margins, must consider whether the loans are affordable for lower-income consumers. "Though the interest rates are regulated, certain microfinance institutions (MFI) appear to be enjoying relatively higher net interest margins," Das said. "MFIs should ensure that the flexibility provided to them in setting interest rates is used judiciously." https://www.reuters.com/world/india/india-cenbank-chief-says-no-sign-stress-housing-vehicle-loans-present-2023-11-22/

2023-11-22 06:24

COPENHAGEN, Nov 22 (Reuters) - Maersk (MAERSKb.CO) said on Wednesday it had entered into the shipping industry's first large-scale agreement to buy 500,000 tonnes of green methanol a year, enough to fuel 12 large ocean-going container ships, from China's Goldwind (002202.SZ). Shipping industry leader Maersk is investing in green fuels to power its fleet as it strives to reach net-zero emissions by 2040, while the shipping industry, responsible for 3% of global greenhouse gas emissions, aims for net-zero emissions by 2050. "This deal is a milestone for Maersk as it enables us to significantly reduce our emissions footprint in this decade," said Rabab Raafat Boulos, Maersk's chief infrastructure officer. The production of green methanol is expected to begin in 2026 and will annually power half of the 24 methanol-enabled vessels that Maersk currently has on order. In July, the Danish shipping group took delivery of the world's first methanol vessel named Maersk Laura. However, the company is still awaiting the arrival of its first large ocean-going vessel in the first quarter of 2024. Green methanol is a fuel produced either from biomass or captured carbon and hydrogen from renewable power sources, and can reduce emissions from container vessels by 60% to 95% compared to conventional fossil fuels. The volumes of fuel from Goldwind combine a mix of green bio-methanol and e-methanol, all produced by utilising wind energy at a new production facility located in Hinggan League, northeast China. In September, Danish industrial group A.P. Moller Holding (APMH), majority-owner of Maersk, formed a new company called C2X to pursue large-scale green methanol operations. The company, a month later, signed a framework agreement worth up to $3 billion for the production of green fuel in the Suez Canal economic zone. https://www.reuters.com/sustainability/maersk-signs-green-methanol-deal-with-chinas-goldwind-2023-11-22/

2023-11-22 06:19

MUMBAI, Nov 22 (Reuters) - The Indian rupee rose on Wednesday aided by IPO-related inflows and strength in the Chinese yuan. The rupee was at 83.3025 against the U.S. dollar as of 11:20 a.m. IST, higher by 0.1% compared with 83.3550 close in the previous session, its lowest closing level on record. IPOs worth $900 million are lined up in the local market this week, including that of engineering firm Tata Technologies which opened for subscription on Wednesday. State-run banks were seen offering the USD/INR, a foreign exchange trader at a foreign bank said. While most Asian currencies weakened, the offshore Chinese yuan climbed and was hovering close to its strongest level in nearly four months. The dollar index edged higher to 103.65 but has fallen near 3% in the month so far but the rupee has largely remained in a narrow band. The rupee is "trying to catch on" to the risk-on mode seen globally aided by IPO-inflows, but the respite could be short-lived, said Arnob Biswas, head of foreign exchange research at SMC Global Securities. On Wednesday, the U.S. 10-year yield held flat at 4.41% in Asia trade after minutes of the U.S. Federal Reserve's Oct. 31-Nov. 1 meeting showed officials agreed they would proceed "carefully," and only raise interest rates if progress in controlling inflation faltered. Investors now await initial jobless claims data due in the U.S. later in the day. The data is expected to show that claims rose to 231,000 in the week ended Nov. 18, according to a Reuters poll, up from 226,000 in the preceding week. https://www.reuters.com/markets/currencies/india-rupee-strengthens-ipo-related-inflows-2023-11-22/