2023-11-09 22:06

OTTAWA, Nov 9 (Reuters) - Montreal-based renewable energy firm TES Canada H2 Inc will build a C$4-billion ($2.9 billion) green hydrogen project in Quebec that is expected to create 200 permanent jobs and reduce 3% of the province's carbon emissions by 2030, a source familiar with the project told Reuters on Thursday. TES Canada, a unit of Tree Energy Solutions, is expected to make an announcement on the project on Friday with Canadian Industry Minister Francois-Philippe Champagne, the source said, declining to be named because details are not yet public. The green hydrogen project will use a wind and solar farm to produce most of the energy it needs, and it will create over 1,000 temporary jobs during the construction period, in addition to permanent positions, the source said. The project will produce 70,000 tonnes of green hydrogen annually from 2028 - about a third of which will be dedicated to decarbonizing long-haul transportation, and the remaining will be used to produce electric renewable natural gas, the source said. Canada has pledged to reduce its greenhouse gas emissions output by 40% to 45% below the 2005 level by 2030, though Ottawa's plan was found to be insufficient in a report released this week. ($1 = 1.3809 Canadian dollars) https://www.reuters.com/sustainability/climate-energy/canada-firm-build-c4-bln-green-hydrogen-project-quebec-source-2023-11-09/

2023-11-09 21:48

Nov 10 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist. Asian markets are set to end the week with a bump on Friday, after Fed chief Jerome Powell the day before warned that U.S. interest rates may need to rise further to win the war on inflation. Powell's remarks were a swift reality check for those who had become increasingly convinced that the Fed's tightening campaign was over - the 10-year U.S. Treasury yield had gone as low as 4.4750% late in the Asian session on Thursday, but closed the U.S. day at 4.63%. The three main U.S. equity indices quickly sank, and ended between 0.7% and 1% lower on the day. If Asian and emerging stocks follow Wall Street's lead, they will close the week in the red. The rebound in U.S. bond yields on Thursday boosted the dollar, which is quietly resuming its climb higher. It is now up four days in a row, eyeing its best week since early September, and has appreciated in 14 of the last 17 weeks. Since mid-July, it has gained 6.5% on a broad basis. One of the dollar's best runs has been against the Japanese yen - the dollar is now up more than 10% in that period to within one yen of the three-decade-high near 152.00 yen hit late last year. Traders remain on high alert for yen-buying intervention from Japanese authorities, but that could just as easily come against the euro, which rose to a fresh 15-year high on Thursday of 161.80 yen. The last time euro/yen was that high in August 2008, euro/dollar was $1.50 (it's $1.0650 today), dollar/yen was 110.00 (it's over 150 yen today) and the U.S.-Japanese 2-year yield gap was 150 basis points (today it is almost 500 bps). It's pretty clear that, from a fundamental and yield spread perspective, the yen is much weaker today than it was then and that the dollar is much stronger. This may be one of the reasons why Tokyo seems reluctant to intervene. Bank of Japan Governor Kazuo Ueda said on Thursday the central bank will proceed carefully in exiting ultra-loose monetary policy to avoid causing huge volatility in the bond market. Ueda said Japan was making progress towards sustainably achieving the central bank's 2% inflation target, but said there is "still some distance to cover" before the BOJ can fully scrap its yield curve control and negative interest rate policy. Sentiment towards China, meanwhile, suffered another blow on Thursday after inflation figures showed that consumer prices swung lower in October. On the political front, Chinese Vice Premier He Lifeng and U.S. Treasury Secretary Janet Yellen hold talks in San Francisco. Yellen called for "open and substantive" discussions on the U.S.-China economic relationship. Here are key developments that could provide more direction to markets on Friday: - New Zealand manufacturing PMI (October) - India industrial production (September) - Australia central bank issues statement on monetary policy https://www.reuters.com/markets/asia/global-markets-view-asia-graphics-pix-2023-11-09/

2023-11-09 21:34

Nov 9 (Reuters) - Pot firm Trulieve Cannabis (TRUL.CD) on Thursday posted a narrower third-quarter loss on lower operating expenses and said it is looking to increase its workforce. Earlier this year, the pot firm said it planned to reduce inventory and preserve cash by closing certain stores, cutting wages and eliminating redundancies throughout 2023 as a part of its overhaul. "We are looking to again increase opportunities for our employee base moving through the end of the year and into next year," Trulieve CEO Kim Rivers said in an interview with Reuters. The company's operating expenses fell about 39% to $120 million in the quarter ended Sept. 30 from a year earlier, and its free cash flow stood at $87 million, above the average analyst estimate of $34.3 million, according to LSEG data. The company, which like its peers are working to turn profitable, also said it expects to generate free cash flow of at least $70 million in 2023. Rivers said Trulieve would continue on its to efforts to improve its margins by reducing its inventory in markets outside Florida. Cannabis firms had witnessed a slowdown after the pandemic as consumers cut back on spending amid rising interest rates and on a tough competition from illegal sellers. Trulieve reported revenue of $275 million, beating average analysts' estimate of $269.2 million, helped by a 235% sequential growth in Maryland traffic following the launch of adult-use sales at its three dispensaries. The company posted a smaller loss of $25 million, compared with $115 million a year earlier. https://www.reuters.com/business/trulieve-cannabis-posts-narrower-q3-loss-beats-cash-flow-targets-2023-11-09/

2023-11-09 21:01

Disney rises on quarterly profit beat Arm falls on weak quarterly forecast Weak 30-year auction sends yields higher Indexes down: Dow 0.68%, S&P 500 0.81%, Nasdaq 0.94% Nov 9 (Reuters) - U.S. stocks closed lower on Thursday, snapping the longest winning streaks for the Nasdaq and S&P 500 in two years, as Treasury yields climbed after a disappointing auction of 30-year bonds and comments from Federal Reserve Chair Jerome Powell. Powell said central bank officials "are not confident" interest rates are high enough to tame inflation, and may not get much more help from improvements in the supply of goods, services and labor. Stocks had moved slightly lower prior to Powell's comments as yields climbed after a weak auction of $24 billion in 30-year Treasuries with demand for the debt at 2.24 times the bonds on sale. The benchmark 10-year Treasury note yield was last up 12.8 basis points at 4.636% after rising as high as 4.654% on the day. Powell is "taking a hawkish viewpoint again," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York. "He's reassuring the market that the fight against inflation has not been won a and if economic conditions warrant, they won't hesitate to hike rates again," he said. "If you add up all the remarks, Powell is telling the market not to get too complacent and that’s putting some pressure on stocks." The Dow Jones Industrial Average (.DJI) fell 220.33 points, or 0.65%, to 33,891.94, the S&P 500 (.SPX) lost 35.43 points, or 0.81 %, to 4,347.35 and the Nasdaq Composite (.IXIC) lost 128.97 points, or 0.94 %, to 13,521.45. The declines marked the biggest one-day percentage drops for the S&P and Nasdaq since Oct. 26, and the largest for the Dow since Oct. 27. Equities have rallied on softening economic data, including the monthly payrolls report, and as U.S. Treasury yields retreated from multi-year highs on the view that the Fed's most recent policy meeting signaled the central bank was done with its rate hike cycle. After Wall Street's strong rally last week, the pace of gains slowed, and the declines on Thursday snapped an eight-session streak of advances for the S&P 500 and nine-session winning streak for the Nasdaq, the longest for each since November 2021. Most traders are betting the Fed will keep interest rates unchanged this year, even after Powell's comments, but now see rates cuts starting later in 2024, according to the CME Group's FedWatch Tool. Several policymakers had already struck a hawkish tone this week to deter rate cut expectations, with some stressing a data-dependent approach to policy. Meanwhile, a Labor Department report showed jobless claims edged lower last week to 217,000, indicating layoffs have yet to accelerate despite signs of a cooling labor market. Walt Disney (DIS.N) jumped 6.9% on a quarterly profit beat and as Hollywood actors reached a tentative agreement with major studios. All 11 of the major S&P sectors were lower, led by declines in healthcare (.SPXHC) and consumer discretionary (.SPLRCD) with declines of about 2% each. Among other stocks, semiconductor firm Arm Holdings dropped 5.2% on a downbeat third-quarter sales forecast. Declining issues outnumbered advancers by a 2.7-to-1 ratio on the NYSE while on the Nasdaq, declining issues outnumbered advancers by a 2.8-to-1 ratio. The S&P 500 posted 19 new 52-week highs and 12 new lows while the Nasdaq recorded 47 new highs and 321 new lows. Volume on U.S. exchanges 11.36 was billion shares, compared with the 10.97 billion average for the full session over the last 20 trading days. https://www.reuters.com/markets/us/futures-listless-markets-await-more-policy-cues-2023-11-09/

2023-11-09 20:58

LIMA, Nov 9 (Reuters) - Peru's government on Thursday announced a package of more than two dozen new measures aimed at boosting investments in the Andean nation, which has been hit by a recession. Economy Minister Alex Contreras said the measures included moves to attract investments to the country's critical mining sector and boosting mining production. The world's no. 2 copper producer slid into recession this year due to the El Nino weather phenomenon, lower private investment and lingering effects from earlier social conflicts. Contreras was upbeat about the recovery plan, which he said would lead to a surge in funding for public and private projects of up to $8 billion in 2024, from $2.3 billion this year. "We are betting on a major recovery" in the fourth quarter, Contreras told a press conference, adding he expects Peru's annualized inflation to fall to around 3.8% to 3.9% in November. With the fresh stimulus, Peru's economy will still be able to hold the country's fiscal deficit to its goal of 2.4% of GDP this year, Contreras said. "We're looking to create a jolt of confidence, for the private sector to understand that the government is committed to reactivating the economy," he said. "We don't want the country to fall into pessimism." (This story has been corrected to specify that the forecast is for fiscal deficit, not economic growth, in paragraph 6) https://www.reuters.com/world/americas/peru-economy-minister-announces-stimulus-measures-amid-recession-2023-11-09/

2023-11-09 20:48

MEXICO CITY, Nov 9 (Reuters) - The Bank of Mexico held its benchmark interest at 11.25% on Thursday as expected, underscoring it will likely maintain the reference rate at its current level for "some time," reflecting a moderation in language from its previous statements. The decision by the central bank's five-member board to hold the key lending rate steady for the fifth consecutive time was unanimous. Following the announcement from Banxico, as the monetary authority is known, the peso currency took a slight hit, weakening over 1%. All analysts polled in a Reuters survey expected the central bank to hold the interest rate at its current all-time high of 11.25%. The rate has sat steady since March, following the central bank's rate-hiking cycle that began in June 2021. In a statement, the bank said that expectations for headline inflation remained unchanged from its last monetary policy meeting in September. The bank maintained a previous forecast that inflation will converge to its target in the second quarter of 2025. "In order to achieve an orderly and sustained convergence of headline inflation to the 3% target, the reference rate must be maintained at its current level for some time," the bank said. The language marks a subtle change from previous rate decisions that forecast the rate's hold "for an extended period." "Although the outlook remains complicated, progress on disinflation has been made," the bank said. The decision "sprung no surprises," concluded Capital Economics' Jason Tuvey, but the tweaks in Banxico's language hinted at a slightly less hawkish stance. "It looks like officials may be starting to contemplate the start of an easing cycle," Tuvey wrote in a note. Inflation has been steadily declining in Latin America's second-largest economy, with data earlier in the day showing inflation easing in October for the ninth consecutive month. https://www.reuters.com/markets/rates-bonds/bank-mexico-maintains-1125-interest-rate-will-hold-some-time-2023-11-09/