2023-11-20 21:15

TSX ends up 0.35% at 20,246.47 Posts its highest closing level since Sept. 18 Financials add 0.4%; tech ends nearly 1% higher Energy rises as oil settles up 2.25% Nov 20 (Reuters) - Canada's main stock index rose on Monday to a two-month high, helped by gains for financial and technology shares, as recent evidence that inflation is cooling continued to underpin investor sentiment. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) ended up 70.70 points, or 0.35%, at 20,246.47, its highest closing level since Sept. 18. Wall Street also notched gains as U.S. Treasury yields eased. Investors have grown more optimistic that borrowing costs have peaked following data last week showing a slowdown in U.S. inflation. "We're seeing basically inflation head lower around the world, and I don't think Canada's inflation data will be any different," Jennifer Lee, senior economist at BMO Capital Markets said. Canada's consumer price index report, due on Tuesday, is expected to show inflation cooling to 3.2% in October from 3.8% in September. Canada's economy is flirting with recession, and the downturn could worsen now that a period of rapid growth in the United States is expected to end, raising bets on the BoC shifting to interest rate cuts sooner than previously thought. Heavily-weighted financials added 0.4% and technology ended nearly 1% higher. Energy was up 0.2% as the prospect of further OPEC supply cuts boosted oil prices. U.S. crude oil futures settled 2.25% higher at $77.60 a barrel. Shares of First Quantum Minerals Ltd (FM.TO) remained volatile, falling 3.5%. The company will carry out maintenance at its Panama mine from Nov. 23 due to coal supplies being blocked by protesters opposing the government's contract with one of the world's biggest and newest copper mines, two sources familiar with the discussions said. https://www.reuters.com/markets/tsx-futures-slip-investor-caution-ahead-cpi-data-2023-11-20/

2023-11-20 20:55

HOUSTON/BRASILIA, Nov 20 (Reuters) - Officials in the Brazilian government have been discussing a possible replacement of the CEO of state-run oil company Petrobras (PETR4.SA), as they are unhappy with the firm's direction, two sources with knowledge of the matter told Reuters. President Luiz Inacio Lula da Silva has shown dissatisfaction with certain actions taken by CEO Jean Paul Prates. This month, Lula asked the CEO to tweak Petrobras' investment plan to prioritize local job creation, Reuters reported. "There should be changes" in the presidency of Petrobras, one of the sources said. A second source close to the discussions, who also spoke on condition of anonymity, said Prates should be replaced at some point, but there is still no substitute ready to take up the post. Brazil's presidential palace denied the information. Fuel prices have also caused some tension with Prates' relationship with the government. Last week, Mines and Energy Minister Alexandre Silveira said it was past time for Petrobras to reduce diesel and gasoline prices at its refineries. Lula has also pressured the oil company to resume efforts to build a fertilizer plant, a product Brazil must import to meet demand from its agribusiness sector. Petrobras did not immediately respond to a request for comment. On Monday, newspaper O Globo reported that Lula's chief of staff, Rui Costa, would suggest a replacement for Prates to the president. Costa later denied the report on social media. https://www.reuters.com/business/energy/petrobras-ceo-replacement-being-discussed-within-brazils-government-sources-2023-11-20/

2023-11-20 20:52

Nov 20 (Reuters) - CVR Energy (CVI.N) agreed to pay more than $23 million for emitting excess sulfur dioxide from its petroleum refinery in Coffeyville, Kansas, in a settlement announced by the U.S. Justice Department and Environmental Protection Agency (EPA) on Monday. Under an agreed upon consent decree, CVR's Coffeyville Resources Refining and Marketing unit (CRRM) must install a $9 million flare gas recovery system, spend $1 million on a Kansas-approved environment-friendly project, and pay over $13 million in fines. The new flare gas recovery system will lower annual greenhouse gas emissions by 12,888 tons, equivalent to using 1.3 million fewer gallons of gasoline every year, and will also cut sulfur dioxide and nitrogen oxide emissions, the EPA projected. The refinery emitted 2,300 excess tons of sulfur dioxide, which can make breathing difficult, cause acid rain, and damage trees and plants. Nitrogen oxide primarily contributes to smog formation. After paying a nearly $1 million penalty as part of a consent decree in 2012 for environmental violations, CRRM had been under investigation by the United States and Kansas since 2016 for additional Clean Air Act violations, leading to Monday's settlement. https://www.reuters.com/sustainability/cvr-energy-pay-23-million-excess-pollution-kansas-refinery-2023-11-20/

2023-11-20 20:50

Nov 20 (Reuters) - Toyota (7203.T) will pay $60 million to settle a U.S. regulator's charges it illegally prevented car buyers from canceling unwanted product bundles that increased their monthly loan payments, and tarnished buyers' credit reports. The Consumer Financial Protection Bureau (CFPB) on Monday said Toyota Motor Credit, the automaker's U.S.-based lending arm, will pay a $12 million civil fine and $48 million to car buyers harmed since 2016. Toyota Motor Credit, based in Plano, Texas, provides financing for people who buy vehicles at Toyota dealerships, with nearly 5 million customer accounts as of Oct. 2022. Monday's settlement concerned "add-on" products, typically costing $700 to $2,500 per loan, that provide protection when vehicles are damaged, stolen or out of warranty, and when car buyers die or become disabled. According to the CFPB, thousands of borrowers complained to Toyota Motor Credit that dealers lied about whether these products were mandatory, or rushed the paperwork so they would not realize how much they were paying. The regulator said Toyota Motor Credit made it "extremely cumbersome" to cancel the bundles, including by routing more than 118,000 borrowers to a hotline where agents were instructed to dissuade cancellations, and often failed to provide refunds. Toyota Motor Credit was also accused of falsely telling credit reporting agencies that borrowers had missed payments, and failing to promptly correct negative information for more than 27,500 borrowers. Under a consent order, and without admitting or denying liability, Toyota Motor Credit agreed to make it easy to cancel unwanted product bundles. It also agreed to more closely monitor dealers' conduct, and ensure that employee pay and performance metrics are not tied to sales of the bundles. Toyota did not immediately respond to requests for comment. https://www.reuters.com/business/autos-transportation/toyota-pay-60-mln-illegal-lending-credit-reporting-misconduct-us-regulator-2023-11-20/

2023-11-20 20:14

Nov 20 (Reuters) - The U.S. Justice Department is seeking more than $4 billion from Binance Holdings as part of a proposed resolution of a years-long investigation, Bloomberg News reported on Monday, citing people familiar with the discussions. Negotiations between the Justice Department and Binance include the possibility that the cryptocurrency exchange's founder, Changpeng Zhao, would face criminal charges in the United States, the report said. Any resolution is likely to play a crucial role in investor sentiment toward crypto, which has taken a hit over a wave of government investigations and charges against firms and individuals in the industry, including the recent fraud conviction of FTX founder Sam Bankman-Fried. The industry also was shaken by several high-profile collapses last year, but is looking to regain some footing after getting a vote of confidence from some traditional financial institutions. A source familiar with the investigation said the long-running government probe was nearing conclusion, but did not give specific information on penalties or exact timeline. The Bloomberg report said an announcement on the resolution could come as soon as the end of this month. Binance did not immediately respond to a Reuters request for comment. A spokesperson for the Justice Department declined to comment. UNDER SCRUTINY FOR YEARS Binance has been under Justice Department's scrutiny since at least 2018, Reuters reported last year. Federal prosecutors asked the company in December 2020 to provide internal records about its anti-money laundering efforts, along with communications involving Zhao, Reuters has reported. The DOJ probe is one of a string of legal and regulatory headaches the world's biggest crypto exchange faces in the United States. In June, the Securities and Exchange Commission (SEC) sued Binance and Zhao, accusing them of operating an "elaborate scheme to evade U.S. federal securities laws." Binance denied the SEC's allegations and said it would "vigorously defend" its platform. The Commodity Futures Trading Commission also sued the exchange in March for "willful evasion" of U.S. commodities law, alleging that Binance and Zhao operated an "illegal" exchange and a "sham" compliance program. Zhao called those charges an "incomplete recitation of the facts." With crypto markets subdued compared with the highs of 2021, Binance has also witnessed an executive exodus and slumping market share. At least a dozen executives have left the exchange in recent months, including Binance's chief strategy officer, general counsel and chief product officer. https://www.reuters.com/legal/us-seeks-more-than-4-bln-binance-end-criminal-case-bloomberg-news-2023-11-20/

2023-11-20 19:37

LONDON, Nov 20 (Reuters) - Bank of England Governor Andrew Bailey said on Monday that it was "far too early to be thinking about rate cuts" and borrowing costs might have to go up again if there were signs that inflation was proving more persistent than expected. "When inflation is high, we take no chances," Bailey said in the text of a speech he was due to deliver at an event organised by the National Farmers' Union, echoing his recent comments that discussion of lowering interest rates was premature. The BoE kept rates on hold for the second meeting in a row this month after 14 consecutive increases to fight an inflation rate that peaked at above 11% in October 2022 before falling to 4.6% in October this year. Bailey said the conflict in the Gaza Strip had added to risks that inflation could go back up. "We must watch for further signs of inflation persistence that may require interest rates to rise again," he said. Investors are betting on the BoE cutting its benchmark borrowing rate by a quarter-percentage point in June next year. Earlier this month, BoE Chief Economist Huw Pill said it was "not totally unreasonable" to think about a rate cut around August 2024 which was priced into the market at the time. Bailey has sought to combat that kind of speculation and he said on Monday that the squeeze on real incomes from higher food and energy prices may still be influencing wage demands. "The Monetary Policy Committee's latest projections indicate that monetary policy is likely to need to be restrictive for quite some time yet," he said in his speech. https://www.reuters.com/markets/rates-bonds/far-too-early-talk-about-rate-cuts-bank-englands-bailey-2023-11-20/