2023-11-21 05:36
Board approves Arizona hydrogen hub Australian hydrogen, green iron projects OK'd for investment Shareholders do not vote for remuneration report at AGM MELBOURNE, Nov 21 (Reuters) - Australia's Fortescue (FMG.AX) approved on Tuesday an estimated total investment of about $750 million over the next three years for two green energy projects and one green steel project as the iron ore miner seeks to become a top-tier clean energy producer. Fortescue approved investments in the U.S. hydrogen hub in Phoenix, Arizona; the Gladstone 50 megawatt green hydrogen project in Queensland, Australia; and the Christmas Creek green iron trial commercial plant in Western Australia. About $550 million will be used for developing an electrolyser and liquefaction facility in Phoenix, where first production of liquid green hydrogen is targeted for 2026. The world's fourth-largest iron ore maker, which is expanding into production of hydrogen from renewable resources with its Fortescue Energy unit, said it had also decided to fast-track projects in Brazil, Kenya and Norway. "It's a positive because it turns no information into some information," said analyst David Coates of BellPotter in Sydney. "It's still difficult to quantify what investment returns are going to look like... I think some of the market's concerns will be allayed because the capital investment required is pretty minimal in the scheme of things." Fortescue is stepping up its push into the U.S. markets. In the past few days, it has unveiled plans to set up an advanced manufacturing centre in Michigan and an office in New York, Fortescue Capital, to lure more investment to its green energy companies. Under a plan to ramp up its green energy business, Fortescue said in August it would stop allocating 10% of its net profit to that unit. Instead, projects and investments would compete for capital allocation, with additional flows from outside investors. Fortescue expects to hold stakes of 25% to 50% in projects with outside investors. At Tuesday's annual general meeting, shareholders voted against a remuneration resolution after the board approved special payments to retiring executives that advisers said were out of line with industry practice. Fortescue shares were up 1% on Tuesday in a strong market for iron ore miners, with peers BHP (BHP.AX) and Rio Tinto (RIO.AX) up 1.5% and 2% respectively. https://www.reuters.com/business/energy/australias-fortescue-approves-750-mln-investment-three-green-projects-2023-11-20/
2023-11-21 05:35
CAIRO, Nov 20 (Reuters) - Yemen's Houthis released video footage on Monday showing armed men dropping from a helicopter and seizing a cargo ship in the southern Red Sea. The footage was released by the movement's TV channel Al Masirah a day after the ship was hijacked by the Iran-backed group, who said the ship was linked to Israel. Israel, however, says the seized ship was British-owned and Japanese-operated. https://www.reuters.com/world/middle-east/yemens-houthis-release-video-footage-showing-armed-men-seizing-israeli-linked-2023-11-20/
2023-11-21 05:31
Q3 c/a at -0.2% of GDP, vs Q2's -0.6% Q3 BoP at $1.5 billion deficit, vs Q2's $7.4 billion deficit JAKARTA, Nov 21 (Reuters) - Indonesia's current account deficit narrowed in the third quarter as demand for exports recovered, the central bank said on Tuesday, with most economists expecting the central bank to leave interest rates unchanged this week as external balances improved. The Southeast Asia's largest economy posted a $0.9 billion deficit in the third quarter, equivalent to 0.2% of gross domestic product, showing a marked improvement from the second quarter, when Indonesia registered its first quarterly deficit in two years. Bank Indonesia's revised data for the second quarter deficit at $2.2 billion, equivalent to 0.6% of GDP, Bank Indonesia's revised data showed. Indonesia's monthly trade surpluses have been declining in value this year as prices of its top commodities like coal and palm oil weakened compared to a year ago. BI noted a recovery in demand for iron and steel exports amid weakening global commodity prices. The deficit in services also decreased in the third quarter, helped by the tourism sector's post-pandemic recovery, BI added. A Reuters poll showed on Tuesday that 27 of 31 economists expected BI to keep its benchmark key interest rate unchanged at 6.00% when the central bank's two day policy review wraps up on Thursday. The remaining four predicted a quarter-percentage-point hike to 6.25%. In October, BI unexpectedly hiked the benchmark interest rate by 25 basis points to 6.00% with focus on rupiah stability, taking its total rate increases since August 2022 to 250 bps. Enrico Tanuwidjaja, a UOB economist, was among the outliers expecting BI to raise rates to keep the rupiah stable, though he viewed the smaller current account deficit as a "good development." "Our view is still for BI to deliver a 25 bps rate hike this week, underpinned by a likely case of the Fed remaining hawkish, expectations of upside inflation risks, and wider yield gap," he said adding a forecast of another 25 bps rate hike in December, taking the terminal rate to 6.50%. Aside from current account, the country's financial and capital account deficit also shrank to $0.3 billion in the third quarter from a deficit of $4.8 billion in the second quarter due to higher foreign loans for companies, offseting the capital outflow, BI said. The smaller deficits in both current and financial accounts reduced the balance of payments deficit to $1.5 billion in the third quarter from $7.4 billion in the second quarter. BI has forecast this year's current account to be between a surplus of 0.4% and a deficit of 0.4%. The rupiah strengthened 0.03% to 15,435 per U.S. dollar by 0433 GMT on Tuesday. https://www.reuters.com/markets/asia/indonesia-posts-smaller-current-account-deficit-q3-export-demand-picks-up-2023-11-21/
2023-11-21 04:51
NEW YORK, Nov 21 (Reuters) - The dollar index was on pace to stem the tide of its recent downturn on Tuesday after minutes from the Federal Reserve's most recent policy meeting showed the U.S. central bank was likely to maintain a restrictive stance on interest rates for some time. Fed officials said inflation remained well above their target but noted that rates would only need to be raised if new data showed insufficient progress on reducing price pressures. "The Fed minutes underscore the Fed's most recent messaging, that they are still not prepared to declare victory and that they have no intention thus far to cut rates in 2024," said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina. The dollar has stumbled of late, dropping nearly 2% last week, as recent data has showed a slowing of the economy and inflation pressures, including the consumer price index (CPI), but not enough to increase fears a sharp looming recession, leading markets to price out any additional Fed rate hikes. Investors are gauging when the Fed may begin to cut rates, pricing in a nearly 60% chance of a cut of at least 25 basis points by May, according to CME's FedWatch Tool, edging up from about 58% on Monday. The dollar index rose 0.14% to 103.58 after falling to a fresh 2-1/2 month low of 103.17, its lowest since Aug. 31. The dollar's recent weakness has buoyed the yen, along with expectations the Bank of Japan may eventually start to move off its ultra-loose monetary policy next year. The dollar pared declines against the Japanese currency , which last strengthened 0.0.1% to 148.35 per dollar. The greenback earlier hit its lowest level since mid-September at 147.14 yen, while sterling was last trading at $1.254, up 0.26% on the day. "Enough people were caught off guard by the CPI number to just kind of let the market go the other way and it's had a nice move, and now it just feels a bit tired going down," said Erik Bregar, director, FX & precious metals risk management at Silver Gold Bull in Toronto. Bregar said given the size of the dollar's drop and big option expirations in the eurodollar and yen on Wednesday, the greenback could stabilize. U.S. existing home sales dropped to the lowest level in more than 13 years in October as the highest mortgage rates in two decades and a dearth of houses drove buyers from the market. The euro fell 0.24% to $1.0912 after reaching 1.0964, its highest since Aug. 11. European Central Bank (ECB) President Christine Lagarde said the central bank has time now to assess how inflation unfolds after a record string of rate hikes but victory has not yet been won and bets based on short-term data flow are premature. In cryptocurrencies, bitcoin was down 1.53% at $36,871 after prosecutors said Binance chief Changpeng Zhao will step down and plead guilty to breaking criminal U.S. anti-money laundering laws as part of a $4 billion settlement resolving a years-long probe into the world's largest crypto exchange. https://www.reuters.com/markets/currencies/dollar-nurses-losses-us-rates-seen-peaking-2023-11-21/
2023-11-21 04:50
Dollar languishes near 2-1/2-month low Gold up 1%, silver and platinum up about 2% Fed minutes anchor cautious policy approach Nov 21 (Reuters) - Gold hurdled over the $2,000 mark on Tuesday, buoyed by expectations that the Federal Reserve had reached an interest rate peak after minutes from the U.S. central bank's latest meeting anchored a cautious approach to more hikes. Spot gold gained 1.2% to $1,999.92 per ounce by 2:30 p.m. ET (1930 GMT), after earlier hitting a three-week peak at $2,007.29. U.S. gold futures settled 1.1% higher at $2,001.60. "Bulls are gorging themselves on gold ahead of the Thanksgiving holiday," said Tai Wong, a New York-based independent metals trader. Fed officials agreed at their last meeting, its minutes showed, that interest rates would only need to move higher "if" incoming information showed insufficient progress in lowering inflation. "The minutes suggest that bond and gold bulls shouldn't overindulge just yet," Wong added. The dollar hit more than a 2-1/2-month low, making gold less expensive for other currency holders. The benchmark U.S. 10-year Treasury yields also hovered near two-month lows touched last week. "It doesn't look like there's going to be any more interest rate hikes here coming up on the horizon, so that's bullish for gold," said Bob Haberkorn, senior market strategist at RJO Futures. Signs of slowing inflation in the U.S. have boosted expectations that the Fed has curbed rate hikes. Lower interest rates decrease the opportunity cost of holding gold. "Now that concerns about the conflict in the Middle East have abated noticeably, the U.S. interest rate outlook has regained the upper hand for gold," Commerzbank said in a note. Spot silver rose 1.9% to $23.85 per ounce on its best day in a week. Platinum gained 2% to hit a three-week high at $936.51 and palladium was up 0.1% at $1,078.56. The global silver market faces a third consecutive year of supply deficit in 2023, the Silver Institute said last week. https://www.reuters.com/markets/commodities/gold-rises-dollar-weakness-focus-turns-fed-minutes-2023-11-21/
2023-11-21 02:57
MUMBAI, Nov 21 (Reuters) - The Indian rupee is likely to inch higher at open on Tuesday, lifted by a broad rally in Asian peers which pushed the Chinese yuan to its highest in nearly four months. Non-deliverable forwards indicate rupee will open at around 83.30 to the U.S. dollar compared with 83.34 in the previous session. The rupee has not participated at all in dollar's slump on soft U.S. data prints. The currency is within a whisker of its lifetime low of 83.42. Based on how the rupee "has behaved over the last few days," the slight relief at opening "is all there will be", a fx spot trader at a bank said. The USD/INR pair is "really well bid right now" and "interbank will have little interest in selling", he said. Asian currencies extended their recent rally, pushing the offshore yuan to near 7.1450 to the dollar, the highest since late-July. The dollar's decline against its major peers on bets that the Federal Reserve is done with rate hikes is showing no signs of letting up. "The extent of dollar decline is highly dependent on how much market expects the Fed to cut and timing of first cut," Christopher Wong, fx strategist at OCBC, said in a note. Tracking a further drop in long maturity U.S. Treasury yields, the dollar index was down to 103.30, the lowest in two-and-a-half months. The 10-year U.S. Treasury yield was dropped to 4.40%. Investors will focus on the minutes of the Fed's last meeting, in which it decided to make no changes to the policy rate. The minutes, due later in the day, come in the wake of investors having priced high probability that the Fed will cut rates in May next year. KEY INDICATORS: ** One-month non-deliverable rupee forward at 83.36; onshore one-month forward premium at 6 paisa ** Dollar index down at 103.25 ** Brent crude futures down 0.2% at $82.1 per barrel ** Ten-year U.S. note yield at 4.40% ** As per NSDL data, foreign investors sold a net $44.8mln worth of Indian shares on Nov. 17 ** NSDL data shows foreign investors sold a net $20.9mln worth of Indian bonds on Nov. 17 https://www.reuters.com/markets/currencies/rupee-see-mild-respite-yuan-lead-rally-asia-fx-2023-11-21/
