2023-11-21 11:09
PARIS, Nov 21 (Reuters) - Croatia has reported an outbreak of the highly pathogenic H5N1 bird flu virus on a poultry farm, the World Organisation for Animal Health (WOAH) said on Tuesday. The outbreak infected five poultry among a flock of 19,600 on a farm in the county of Brodsko-Posavska near the Bosnian border, the Paris-based WOAH said in a report, citing Croatian authorities. Highly pathogenic avian influenza, commonly called bird flu, has spread around the globe in the past years, leading to the culling of hundreds of millions of poultry. https://www.reuters.com/world/europe/croatia-reports-bird-flu-outbreak-poultry-farm-2023-11-21/
2023-11-21 10:49
NEW DELHI, Nov 21 (Reuters) - A decline in international crude oil prices will help control India's inflationary pressures going forward, the country's finance ministry said in a report on Tuesday. India's retail inflation eased in October to a four-month low of 4.87%, edging closer to the central bank's target of 4%. India's crude oil basket has averaged $83.93 a barrel in November so far, compared with $90.08 a barrel in October, government data shows. "The decline in international crude oil prices and continued moderation in core inflation are likely to control inflationary pressures going forward," the monthly economic report said. It said core inflation, which strips out volatile food and energy prices, fell to 4.3% in October from 4.5% in September. The monthly report said that the Reserve Bank of India, which has kept rates on pause for the fourth consecutive policy meeting, has indicated that any further tightening of monetary policy will only occur "if the situation warrants." However, food inflation has remained elevated, worrying policy makers, and both finance ministry officials and RBI governor have highlighted risks from a spike in food prices. https://www.reuters.com/world/india/india-says-falling-oil-prices-should-ease-inflation-pressure-2023-11-21/
2023-11-21 09:50
COLOMBO, Nov 21 (Reuters) - Sri Lanka's consumer price inflation rose to 1% in October year-on-year from 0.8% in September, the statistics department said on Tuesday. The National Consumer Price Index (NCPI) (LKNCPI=ECI), which captures broader retail price inflation, is released with a lag of 21 days every month. Food prices fell 5.2% in October after declining 5.2% in September, from a year earlier, the Department of Census and Statistics said in a statement. Prices for non-food items, however, climbed 6.3% in October after rising 5.9% year-on-year in September. Sri Lanka racked up record high inflation last year after its economy was pummelled by the worst financial crisis in decades, triggered by a sharp decline in foreign exchange reserves. But inflation has fallen sharply since June, partly due to the statistical base effect, but also helped by a stronger rupee currency, and better harvests. "Despite an increase in electricity prices last month, we expect inflation to end the year at about 5%," said Dimantha Mathew, head of research at First Capital Research. "The impact from price adjustments is not expected to be severe and inflation is likely to remain within the central bank targets." The Central Bank of Sri Lanka (CBSL), which has targeted inflation within a band of 4% to 6%, will announce on Friday its last policy rate decision for this year. Sri Lanka secured a staff level agreement on the first review of its $2.9-billion bailout from the International Monetary Fund (IMF) last month. But approval from the global lender's executive board has been delayed as the island nation holds debt restructuring talks with bilateral creditors and bondholders. https://www.reuters.com/markets/asia/sri-lankan-inflation-rises-1-october-2023-11-21/
2023-11-21 06:49
More OPEC+ cuts likely next year, analysts say IEA sees surplus oil supply in 2024 API shows US crude inventories climb -market sources NEW YORK, Nov 21 (Reuters) - Oil prices ended near flat on Tuesday after rallying for two sessions, with investors cautious ahead of Sunday's scheduled OPEC+ meeting, when the producer group may discuss deepening supply cuts due to slowing global economic growth. Brent crude futures settled 13 cents higher at $82.45 a barrel. U.S. West Texas Intermediate crude futures eased 6 cents lower at $77.77. Prices pared losses late, with one more session before the U.S. Thanksgiving holiday on Thursday, which typically yields lower trading volumes in oil. "Going into the long weekend the market would rather be a little bit long than short," said Andrew Lipow, president of Lipow Oil Associates. On Monday, both contracts climbed about 2% after three OPEC+ sources told Reuters the group, the Organization of the Petroleum Exporting Countries (OPEC) and allied producers, was set to consider additional oil supply cuts when it meets on Nov. 26. OPEC+ is likely to extend or even deepen oil supply cuts into next year, eight analysts have predicted. "We see some scope for the group to do a deeper reduction, but we would anticipate that Saudi Arabia would seek additional barrels from other members to share the burden of the adjustment," said RBC Capital analyst Helima Croft. Even if the OPEC+ nations extend their cuts into next year, the global oil market will see a slight supply surplus in 2024, the head of the International Energy Agency's (IEA) oil markets and industry division said on Tuesday. Currently though, the oil market is in a deficit with stocks declining "at a fast rate", Toril Bosoni said on the sidelines of a conference in Oslo. U.S. crude stocks rose by nearly 9.1 million barrels in the week ended Nov. 17, according to market sources citing American Petroleum Institute figures on Tuesday. Gasoline inventories dropped by about 1.79 million barrels, while distillate inventories fell by about 3.5 million barrels. U.S. government data on stockpiles was due on Wednesday. Oil has fallen about 16% since late September as crude output in the U.S., the world's top producer, held at record highs, while the market was concerned about demand growth and a potential economic slowdown. Market participants kept an eye on a development in the Gulf of Mexico, as U.S. officials said seven energy companies have been impacted by an oil discharge near Main Pass Oil Gathering Co's (MPOG) pipeline system that is estimated to have released more than a million gallons of crude oil. https://www.reuters.com/business/energy/oil-prices-ease-demand-concerns-outweigh-supply-cuts-prospect-2023-11-21/
2023-11-21 06:28
NEW DELHI/BRUSSELS/WASHINGTON, Nov 21 (Reuters) - France, backed by the United States, plans to seek a halt to private financing for coal-based power plants during the U.N. climate conference later this month, three sources familiar with the deliberations told Reuters in India and Europe. The plan, which was communicated to India earlier this month, will deepen divisions at the COP28 summit in Dubai running from Nov. 30 to Dec. 12, with India and China opposed to any attempt to block construction of coal-fired power stations for their energy-hungry economies. France's minister of state for development Chrysoula Zacharopoulou told the Indian government about the plan, called the "New Coal Exclusion Policy", for private financial institutions and insurance companies, two Indian officials said. The plan to stop private financing for coal-fired power plants has not been previously reported. A spokesman for Zacharopoulou did not directly comment on emailed queries from Reuters but said the question of financial investments in coal had been discussed at several different multilateral forums over the past few years. India's environment, power and renewable energy, coal, external affairs and information ministries, the OECD and the French embassy in New Delhi did not respond to Reuters' requests for comment. A source in Europe familiar with the plan said the aim was to dry up private funding for coal power and that it was a top priority for French President Emmanuel Macron during COP28, seen as a crucial opportunity to accelerate action to limit global warming. The proposal provides for the Organisation for Economic Co-operation and Development (OECD) to set coal-exit standards for private finance firms whose financing could be tracked by regulators, rating agencies and non-governmental organisations, the two Indian officials said. The U.S., European Union and Canada, among others, have been seeking a plan to expedite the phase-out of coal, which they have cited as the "number one threat" to climate goals. They are concerned private international financing continues to support large additions to coal capacity in developing nations, according to the plan shared by France with India. Some 490 gigawatts of new coal capacity, roughly equal to one-fifth of existing global capacity, is planned or under construction, mostly in India and China, the officials said. Rick Duke, Deputy U.S. Special Envoy on Climate Change, did not comment directly on the proposal but noted the expansion in coal-fired plants. "We are pushing to set an expectation globally that countries need to join us in the fastest possible power sector transition, including all that clean power deployment," Duke said. "And countries need to stop digging a deeper hole by building new unabated coal power plants, because unfortunately, there's still some 500 gigawatts of new coal-fired power plants in the pipeline globally, and the IPCC and the International Energy Agency have both been quite clear that that needed to stop already." Member countries are divided on emissions abatement technologies that are yet to evolve to commercial scale for use in developing countries, one of the Indian officials said. About 73% of electricity consumed in India is produced using coal, even though the country has increased its non-fossil capacity to 44% of its total installed power generation capacity. The country intends to resist the push to fix a deadline for a fossil fuel phase-out or phase-down at COP28, as coal will be its main energy source for a few more decades, and may ask members to shift their focus on reducing emissions from other sources. It may also push developed nations to become carbon negative rather than carbon neutral by 2050. https://www.reuters.com/sustainability/sustainable-finance-reporting/france-us-propose-ban-private-finance-coal-fired-plants-cop28-sources-2023-11-21/
2023-11-21 06:17
Nov 21 (Reuters) - McDonald's (MCD.N) said it had struck a deal to ramp up its stake in its China business to just under 50%, expressing confidence in the burger chain's growth prospects in the world's second-largest economy. The move contrasts sharply with the prevailing trend of multinational corporations reeling back investments in China or even exiting the market altogether due to geopolitical and economic challenges. The deal to acquire investment firm Carlyle's (CG.O) 28% holding in the burger chain's China business, which also includes its stores in Hong Kong and Macau, will see McDonald's stake rise to 48%. A consortium led by state-backed conglomerate CITIC (0267.HK) has controlling ownership with a 52% stake. "We believe there is no better time to simplify our structure, given the tremendous opportunity to capture increased demand and further benefit from our fastest growing market's long-term potential," McDonald's CEO Chris Kempczinski said in a statement on Monday. Financial terms were not disclosed but two people with knowledge of the transaction said the deal values the China unit at around $6 billion. That is far more than its valuation in 2017 when McDonald's agreed to sell 80% of the business to CITIC, its investment arm CITIC Capital - now known as Trustar Capital - and Carlyle for up to $2.1 billion. At the time, the U.S. firm had wanted to pursue rapid expansion without using much of its own capital. It is, however, less than the valuation of up to $10 billion that Carlyle and Trustar had at one point been seeking as part of efforts to establish a so-called continuation fund, different sources have previously said. A continuation fund is a type of investment vehicle created by private equity firms that enables them to more easily sell down their stakes in existing investments. The sources were not authorised to speak to media about the deal and declined to be identified. McDonald's declined to comment on the valuation figure. Carlyle also declined to comment. Since 2017, the number of McDonald's stores in China has doubled to 5,500 and the country has become its second-largest market. The business aims to have more than 10,000 stores in China by 2028. The business has also generated sales growth of more than 30% since September 2019, the company said in the statement. McDonald's made an unsolicited offer for Carlyle's stake in the China operations in recent weeks and the deal was struck quickly, said the sources. "Having a stronger investment position should give them a better voice in making sure that the growth that they expect out of that marketplace occurs," said Jim Sanderson, an analyst at Northcoast Research. Reuters reported in August that Trustar Capital was planning to raise a continuation fund that would allow the Chinese private equity firm to sell down its stake in McDonald's China. In contrast to McDonald's, U.S. meat and processed food maker Tyson Foods (TSN.N) plans to sell its China poultry business, sources have said. British consumer goods maker Reckitt Benckiser (RKT.L) in 2021 sold its China infant formula and child nutrition business to investment firm Primavera Capital for an enterprise value of $2.2 billion. https://www.reuters.com/markets/deals/mcdonalds-acquire-carlyles-stake-china-unit-2023-11-20/
