2023-11-14 22:53

SYDNEY, Nov 15 (Reuters) - Australia said on Wednesday China could lift all its remaining trade blocks by next month as relations between the commodity trade partners stabilise and after Prime Minister Anthony Albanese's visit to Beijing earlier this month. Albanese's government has taken credit for patching up ties with China since coming to office last year. China has lifted most trade blocks imposed amid a 2020 diplomatic dispute after Australia called for an inquiry into the origins of COVID-19. "I remain very confident ... that by Christmas all of these trade impediments will be removed," trade minister Don Farrell told ABC Radio from San Francisco, where he is attending Asia-Pacific Economic Cooperation (APEC) meetings. "And we will have restored that stable relationship that we want with our largest trading partner." Farrell said he hoped to resolve the issues over lobster and beef, which related to bio-security rules, ahead of a meeting with Chinese counterpart Wang Wentao in San Francisco. https://www.reuters.com/world/asia-pacific/australia-confident-china-will-lift-all-trade-blocks-next-month-2023-11-14/

2023-11-14 22:46

LOS ANGELES, Nov 14 (Reuters) - Exxon Mobil (XOM.N) has yet to decide which lithium filtration technology it will deploy as part of its aggressive plans to become one of the world's top producers of the metal used to make electric vehicle (EV) batteries, an executive said on Tuesday. On Monday, the oil giant unveiled its long-awaited lithium strategy and said it aims to filter the ultralight metal from reservoirs about 10,000 feet beneath the U.S. state of Arkansas. Reuters first reported the news last weekend. Exxon's expansion into the sector will rely on one or more of a so-far unproven fleet of direct lithium extraction (DLE) technologies that Eramet (ERMT.PA), Sunresin (300487.SZ), Rio Tinto (RIO.AX) and others are working to commercialize. Choosing which DLE technology to license will be a crucial decision upon which Exxon's production of the battery metal will rely. The company has held talks with a range of DLE technology providers, including International Battery Metals (IBAT.CD) and privately held EnergySource Minerals. "We haven't chosen a (DLE) company yet. We're in the process of evaluating a number of companies," Patrick Howarth, Exxon's global product manager for lithium, said in an interview on the sidelines of the Benchmark Week 2023 strategic minerals conference in Los Angeles. The company will provide details on its DLE process once it formally decides to proceed with its lithium project, a technical step known as formal investment decision, he said. He declined to be more specific on timing. Even though it has yet to pick a DLE technology, Exxon is confident it can start producing lithium by 2027 on 120,000 acres in Arkansas that it acquired earlier this year, Howarth said. "What we've seen as we've looked at a number of the (DLE) technology providers is pretty consistent abilities on the brine that we've got within Arkansas to extract lithium," he said. Because it not yet chosen a DLE technology, Exxon also has not yet forecast how much lithium it ultimately aims to produce. The company is drilling test wells across Arkansas to study the underground brine reservoir. "From there, we'll be able to come back with a more fulsome number about production ambitions," Howarth said. Separately, Exxon has a lithium partnership with Tetra Technologies (TTI.N) to develop a smaller parcel in Arkansas that is expected to be producing 10,000 metric tons of lithium per year by 2026. Exxon is also studying where else in the world it could produce lithium, Howarth said. https://www.reuters.com/markets/commodities/exxon-eyes-lithium-crucial-decision-looms-filtration-technology-2023-11-14/

2023-11-14 21:56

Nov 15 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist. Asian markets open on Wednesday with stocks, risk assets and investor sentiment around the world soaring after cooling U.S. inflation data on Tuesday looked to close the door on more rate hikes and pave the way for the fabled economic 'soft landing'. Some of Tuesday's U.S. market moves were eye-popping - two- and five-year bond yields plunged more than 20 basis points; the Nasdaq rose more than 2%; the Russell 2000 index rose 5% for its best day in a year; the dollar fell 1.5% for its worst day in a year; and the Aussie and New Zealand dollars both leaped 2%. This should be rocket fuel for Asia on Wednesday, although there is no shortage of event risk. Top-tier data releases include third quarter Japanese GDP and Chinese retail sales, industrial output, investment and unemployment figures for October, while U.S. and Chinese Presidents Joe Biden and Xi Jinping meet at the Asia Pacific Economic Cooperation forum in San Francisco. Biden and Xi have only met once before, and this is Xi's first visit to the U.S. since 2017. Xi is hoping to persuade Biden to ease up on tariffs and export controls aimed at keeping the most advanced semiconductors from being sent to China. In a separate dinner with business leaders, he will also be looking to boost flagging investment by U.S. firms in China. Foreign investors have pulled huge sums out of China this year as the economy has faltered and tensions with the West have deepened. Ahead of their talks, China's yuan climbed to a three-month high of 7.25 per dollar on Tuesday, rising around 0.5% for its biggest one-day gain in two months. The latest retail sales, industrial output, investment and unemployment figures for October will give an insight into whether China's economy is maintaining the surprisingly strong momentum it showed in the third quarter. Citi's China economic surprises index has been in positive territory for almost a month, suggesting activity is strengthening or analysts are lowering their expectations. Or a bit of both. Japan's economic surprises index, on the other hand, just slumped into negative territory and is the lowest since June. The first reading of third quarter GDP on Wednesday could lift it again - the bar would appear low enough. Economists reckon the economy contracted 0.1% from the April-June period and shrank 0.6% on an annualized basis. That would represent a significant slowdown from growth rates of 1.2% and 4.8%, respectively, in the previous quarter. The corporate focus in Asia on Wednesday turns to the third quarter earnings reports from China's JD.Com and Tencent Holdings. JD.Com is expected to report a 2.3% increase in revenue to CNY249.258 billion and CNY5.77 earnings per share. Here are key developments that could provide more direction to markets on Wednesday: - Japan GDP (Q3, preliminary) - China retail sales, industrial output, investment, unemployment (October) - Presidents Joe Biden and Xi Jinping meet https://www.reuters.com/markets/asia/global-markets-view-asia-graphics-pix-2023-11-14/

2023-11-14 20:59

NEW YORK, Nov 14 (Reuters) - U.S. bond giant Pacific Investment Management Company (PIMCO) said on Tuesday it favors bonds over other asset classes next year as it expects economic growth to have peaked and that inflation will slow down. "Given current valuations and an outlook for challenging economic growth and diminishing inflation, we believe bonds have rarely appeared more compelling than equities," portfolio managers at PIMCO said in an outlook report. U.S. Treasury yields, which move inversely to prices, have risen sharply over the past few months as investors increasingly expected interest rates to remain high for long because of a resilient economy. Meanwhile, rising concerns over increased government bond issuance have pushed investors to demand more compensation for holding long-term paper. But a decline in inflation could prompt the Federal Reserve to cut rates sooner than previously expected, boosting the value of bonds. On Tuesday, yields dropped sharply after softer-than-expected consumer inflation data in October, suggesting the Fed may be done raising rates, with the market bracing for rate cuts by the first half of next year. PIMCO said duration - or the sensitivity of a fixed income portfolio to changes in interest rates - looked attractive in the U.S. and in other markets such as the UK, Australia, and Canada. In credit, the asset manager said it was cautious on corporate bonds due to expectations of an economic slowdown, while it favored mortgage-backed securities and some securitized bonds. PIMCO sees the probability of a U.S. recession within one year at 50%. "We maintain an overall neutral stance on equities, which appear richly valued by several measures, though they should return to more reasonable levels over time," it said. https://www.reuters.com/markets/us/pimco-bullish-bonds-next-year-inflation-slows-down-2023-11-14/

2023-11-14 20:47

NEW YORK, Nov 14 (Reuters) - The U.S. Securities and Exchange Commission (SEC) filed 784 enforcement actions in the fiscal year that ran through September, garnering $4.95 billion in penalties and other financial remedies, the agency said in a statement on Tuesday. The total financial remedies in fiscal 2023 were the second-highest in SEC history, following last year's record of $6.4 billion, including both disgorgement and interest in addition to civil penalties. The figures underscore how the agency has sought to more aggressively police violations and misconduct under Democratic leadership. The SEC barred 133 individuals from serving as directors and officers of public companies, the highest number of such bans in a decade, the SEC said in a statement. The SEC's tally included settlements with 25 broker-dealers, advisers and others over employees' use of personal devices and apps including WhatsApp, the agency said. The regulator obtained a $178.6-million civil penalty against Danske Bank (DANSKE.CO) to resolve charges of misleading investors over its efforts to combat money-laundering and $56 million in fines and other remedies against mining firm Vale SA (VALE3.SA) over false and misleading disclosures leading up to a dam collapse that killed 270 people. The year's enforcement work also included high-profile lawsuits against players in the cryptocurrency sector, such as FTX founder Sam Bankman-Fried. https://www.reuters.com/business/finance/us-sec-enforcement-garnered-nearly-5-billion-financial-remedies-last-year-2023-11-14/

2023-11-14 20:40

ABUJA, Nov 14 (Reuters) - Nigeria's central bank said on Tuesday old bank notes that were due to be removed from circulation next month would now remain legal tender, ending months of uncertainty after an attempt earlier this year to remove them caused serious cash shortages. The Supreme Court in March ordered the Central Bank of Nigeria (CBN) to extend until Dec. 31 the use of old 1,000, ($1.18) 500 and 200 naira notes, whose initial withdrawal from circulation became an election issue after it caused widespread hardship and anger. The bank had defended the removal of the notes, saying new ones would be harder to counterfeit and that the process would also help control liquidity in an economy where most money is held outside banks. On Tuesday, the CBN, which has had a new governor since September, said the old bank notes "will remain legal tender ad infinitum, even beyond the initial December 31, 2023 deadline". During the election campaign, President Bola Tinubu had opposed the removal of the old bank notes. https://www.reuters.com/markets/currencies/nigeria-central-bank-says-old-bank-notes-remain-legal-tender-2023-11-14/