2023-11-03 05:58
NEW DELHI, Nov 3 (Reuters) - India's capital New Delhi was wrapped in a thick layer of toxic haze on Friday and some schools were ordered closed as the air quality index (AQI) plummeted to the "severe" category. New Delhi again topped a real-time list of the world's most polluted cities compiled by Swiss group IQAir, which put the Indian capital's AQI at 640 in the "hazardous" category on Friday, followed by 335 in the Pakistani city of Lahore. Regional officials said a seasonal combination of lower temperatures, a lack of wind and crop stubble burning in neighbouring farm states had caused a spike in air pollutants. Many of New Delhi's 20 million residents complained of irritation in the eyes and itchy throats with the air turning a dense grey as the AQI hovered around 480 in some monitoring stations. An AQI of 0-50 is considered good while anything between 400-500 affects healthy people and is a danger to those with existing diseases. "In my last 24 hours duty, I saw babies coughing, children coming with distress and rapid breathing," Aheed Khan, a Delhi-based doctor, said on social media platform X. There were fewer people in the city's parks such as Lodhi Garden and India Gate, popular with joggers. Residents snapped up air purifiers. One service centre for the appliances said there was a shortage of new filters and fresh stocks were expected on Monday. Officials said they saw no immediate improvement in the air quality. "This pollution level is here to stay for the next two to three weeks, aggravated by incidents of stubble burning, slow wind speed and cooling temperatures," said Ashwani Kumar, chairman of the Delhi Pollution Control Committee. Farmers in the northern states of Punjab, Haryana and Uttar Pradesh typically burn crop waste after harvesting in October to clear their fields before sowing winter crops a few weeks later. This year, attention on the worsening air quality has cast a shadow over the cricket World Cup hosted by India, with financial capital Mumbai also suffering from a spike in pollution levels. Delhi hosts a World Cup match on Monday between Bangladesh and Sri Lanka. A concentration of toxic PM2.5 particles, which are less than 2.5 microns in diameter and can cause deadly illness, was 53.4 times the World Health Organization's annual air quality guideline value in New Delhi on Friday, according to IQAir. While junior schools in the capital were ordered shut for Friday and Saturday, they were open in the suburbs and children boarding school buses were forced to wear masks that had been put away since the end of the COVID-19 pandemic. Poor air quality also caused respiratory problems, irritation in the eyes and restlessness in pet animals. "Breathing trouble can develop into pneumonia or other ailments in younger animals. If possible, avoid taking pets out on morning walks for a few days till the air improves," said Prabhat Gangwar, a veterinarian at animal welfare NGO Friendicoes. https://www.reuters.com/world/india/air-pollution-indias-new-delhi-turns-severe-some-schools-shut-2023-11-03/
2023-11-03 05:58
US stocks end sharply higher US job growth slower than expected in October Oil prices end lower NEW YORK, Nov 3 (Reuters) - Global stock indexes rose sharply, the U.S. dollar dropped to a six-week low and benchmark 10-year U.S. Treasury yields fell to five-week lows on Friday after data showed U.S. job growth slowed more than expected in October. The job growth slowdown underscored views that the Federal Reserve may be done hiking interest rates. Also, U.S. two-year yields were the lowest since early September after the data, which showed U.S. job growth slowed in part as strikes by the United Auto Workers union against Detroit's "Big Three" carmakers depressed manufacturing payrolls. The data also showed the increase in annual wages was the smallest in nearly 2-1/2 years, pointing to an easing in labor market conditions. "The good news here is that the slowdown will likely keep the Fed on the sidelines going forward," said Brad McMillan, chief investment officer for Commonwealth Financial Network in Waltham, Massachusetts. "One of their key concerns has been an overheated economy, especially after last quarter's GDP growth, and this suggests that problem is going away." Wednesday's U.S. central bank decision to leave rates unchanged and comments by Fed Chair Jerome Powell indicated to some investors that the Fed may be done raising rates. The Bank of England on Thursday also left rates unchanged. Central bank officials however stressed that more may need to be done to tackle inflation. Traders are now pricing in only a 5% chance of a Fed rate hike in December, down from 20% on Thursday, while the odds of a January increase have slipped to 11% from 28%, according to the CME Group's FedWatch Tool. Benchmark 10-year yields fell as low as 4.484%, the lowest since Sept. 26. Two-year note yields reached 4.807%, the lowest since Sept. 1. A decision on Wednesday by the U.S. Treasury to issue less long-term debt than expected also fuelled the rally in bonds, as did data on Thursday suggesting the U.S. economy might finally be cooling. The Dow Jones Industrial Average (.DJI) rose 222.24 points, or 0.66%, to 34,061.32, the S&P 500 (.SPX) gained 40.56 points, or 0.94%, to 4,358.34 and the Nasdaq Composite (.IXIC) added 184.09 points, or 1.38%, to 13,478.28. Bucking the trend of the broader market, Apple (AAPL.O) shares fell 0.5%, a day after the company reported quarterly results and warned of a dull holiday quarter. The three major U.S. stock indexes also posted gains for the week, with the S&P 500 registering its biggest weekly percentage jump since November 2022. The pan-European STOXX 600 index (.STOXX) rose 0.17% and MSCI's gauge of stocks across the globe (.MIWD00000PUS) gained 1.18%. The MSCI index was up 5.3% for the week, also the biggest weekly percentage increase since November 2022. The U.S. dollar index dropped to a six-week low after the jobs data. In afternoon trading, the dollar index fell 1.111%, with the euro up 1.07% to $1.0734. The Japanese yen strengthened 0.72% versus the greenback at 149.31 per dollar, while sterling was last trading at $1.2379, up 1.46% on the day. In commodities, oil prices ended more than 2% lower, with the geopolitical risk premium waning. Brent crude futures settled at $84.89 a barrel, while U.S. crude futures settled at $80.51. Spot gold added 0.4% to $1,994.31 an ounce. https://www.reuters.com/markets/global-markets-wrapup-1-2023-11-03/
2023-11-03 05:39
Net profit falls 39%, misses market expectations Asset management division leads profit decline To buy back A$2 billion of shares Shares close 1.8% higher after initial fall SYDNEY, Nov 3 (Reuters) - Macquarie Group's half-year profit fell to a three-year low as costs rose and it booked fewer asset sales, especially in green energy, but it said performance would lift in the second half and announced a A$2 billion ($1.29 billion) share buyback. The first-half 2024 financial year results reported on Friday were a rare miss for the Australian firm, which prides itself on a global breadth stretching from retail banking to offshore wind and commodity trading. The Sydney-based financial conglomerate has not had a steeper first-half profit drop in more than a decade. The results capped a run of "exceptional conditions" last year in the company's commodity trading and asset management segments, buoyed by energy market volatility and ripe conditions for asset sales, respectively, Chief Financial Officer Alex Harvey told Reuters. "We obviously know they were exceptional circumstances, that we didn't expect those circumstances to repeat into 2024," he said. Macquarie (MQG.AX) had already trimmed its earnings forecasts twice since its record fiscal 2023 results announced in May, but the 39% fall in net profit to A$1.42 billion for the half ended Sept. 30 was well below a consensus estimate of A$1.77 billion compiled by Citi. The company's shares fell as much as 3% in early trading before regaining ground to close 1.8% higher, ahead of the Australian benchmark's (.AXJO) 1.1% rise. The A$892 billion asset management division led the earnings decline, with profits down 71% to A$407 million as costs rose and Macquarie booked fewer sales amid weaker transaction conditions after a series of big deals last year. The company held onto much of its portfolio of green assets in particular, some to seed a new fund, others for sales in the second half. Chief Executive Shemara Wikramanayake told investors Macquarie expected to sell the assets without major discounts and to sidestep the problems facing other operators sandwiched between fixed-price contracts agreed in 2020 and 2021 and the subsequent inflation surge. "Our portfolio we feel comfortable is very different to the situations where these large write-offs have been announced recently," she said on an earnings call. "These are operating assets with big (power purchase agreements) earning money and we're seeing interest in them." Macquarie said the asset management division's income should rebound in the second half to about the A$940 million it reported in the same period last year. The other big decline came in the heavyweight commodities and global markets segment, where profits fell 31% to A$1.4 billion as a degree of normalcy returned to energy markets after the chaos last year unleashed by Russia's invasion of Ukraine and turbulent weather in North America. Wikramanayake told Reuters that energy markets had yet to respond to the Israel-Hamas conflict, but Macquarie was watching for any spillover to the broader Middle East and the oil market. Despite the weaker result, the company's board approved an on-market share buyback of up to A$2 billion and declared an interim dividend of A$2.55 per share, citing its ability to return excess capital to investors. Investment bank Barrenjoey said the result was "disappointing" and it expected higher costs for people, technology and regulatory compliance to trigger earnings downgrades of between 5% and 10%. The company said fees and commissions at investment banking arm Macquarie Capital were in line with the previous comparable period. Profit fell 28% to A$430 million. The division guided to full-year transaction activity in line with the prior financial year, versus its earlier forecast activity would exceed that period. Earnings in the banking and financial services division, home to Australia's fifth-largest retail mortgage business, were a rare bright spot and rose 10% to A$638 million on the back of loan growth and stronger margins. ($1 = 1.5550 Australian dollars) https://www.reuters.com/business/finance/australias-macquarie-posts-386-fall-first-half-profit-2023-11-02/
2023-11-03 05:35
LONDON, Nov 3 (Reuters) - Oil prices were little changed on Friday, but headed for a second week of losses as supply concerns driven by conflict in the Middle East eased, while the demand outlook from the world's top crude importer China remained uncertain. Brent crude futures were down 13 cents, or 0.1%, to $86.72 a barrel at 0955 GMT, while U.S. West Texas Intermediate crude futures slipped 10 cents, or 0.1%, to $82.36 a barrel. Both benchmarks gained more than $2 a barrel on Thursday, but were on track to lose about 4% on the week. China's manufacturing activity unexpectedly contracted in October. The official purchasing managers' index (PMI) fell to 49.5 in October from 50.2, dipping back below the 50-point level demarcating contraction from expansion, data from the National Bureau of Statistics showed on Wednesday. On Friday, a private sector survey showed China's services activity expanded at a slightly faster pace in October, but sales grew at the softest rate in 10 months and employment stagnated as business confidence waned. Meanwhile, a U.S. Labor Department employment report later on Friday is expected to show labour market conditions steadily easing, with annual wage growth the smallest in nearly 2-1/2 years and significant growth in the supply of workers. The report could bolster the view that the U.S. Federal Reserve need not raise interest rates further. The Fed held interest rates steady on Wednesday, while the Bank of England held rates at a 15-year peak. The stable policies kept oil prices supported as some risk appetite returned to markets. Meanwhile, geopolitical concerns remained in focus, as Israeli forces on Thursday encircled Gaza City - the Gaza Strip's main city - in their assault on Hamas, its military said, but the Palestinian militant group resisted their drive with hit-and-run attacks from underground tunnels. "The oil market will be watching for an escalation of tensions, particularly on the Lebanese border, as Hezbollah attacks increase," City Index Fiona Cincotta said. Hezbollah leader Sayyed Hassan Nasrallah will on Friday make his first public comments since Hamas and Israel went to war, a speech that will be scrutinised for clues on how the group's role in the conflict might evolve. On the supply side, top oil exporter Saudi Arabia is expected to reconfirm an extension of its voluntary oil-output cut of 1 million barrels per day through December, based on analyst expectations. https://www.reuters.com/business/energy/oil-prices-steady-track-second-straight-week-losses-2023-11-03/
2023-11-03 05:31
A look at the day ahead in European and global markets from Vidya Ranganathan. Global stocks are having their strongest weekly rally in a year, global yields are sliding and corporate earnings reports have been surprisingly robust. If all goes to plan, markets end what has been a turnaround week with a U.S. jobs report that underpins the optimism around peak global rates. World stocks (.MIWD00000PUS) are up 4.2% for the week so far, their largest weekly rise since November 2022. The S&P 500 (.SPX) chalked up its best day in six months, also boosted by strong corporate earnings and guidance - Apple reported forecast-beating quarterly sales and profit, although shares fell slightly in after hours trade. The premise is that the Federal Reserve, Bank of England, European Central Bank and other central banks are done raising rates. If the Fed delivered a 'dovish' pause on Wednesday, the BoE delivered a 'hawkish' pause on Thursday. But the over-arching reaction across markets was the same - huge rallies in bonds, stocks and risk assets. Ten-year gilts had their sharpest rally in more than a month. The three main Wall Street indexes are well on course to register their strongest week of the year, all eyeing weekly gains of around 5%. Investors are now looking to when the easing cycles start and how far they go. Around 70 to 75 basis points of Fed easing next year is priced into the U.S. curve, and almost 50 bps of expected rate cuts is reflected in the UK curve. The U.S. 10-year yield is down around 40 basis points from its peak above 5% only a few days ago and the dollar is slipping. That's music to emerging market ears. Markets are now pricing in a less than 20% chance of a Fed rate rise in December compared with 39% a month earlier, CME FedWatch tool showed. Yet, some tensions remain after the resilience in factory orders data elevated 2-year yields even as Treasury borrowing plans and Fed Chair Jerome Powell's inflation views bumped up 10-year notes. Friday's employment report for October is expected to show that employers added 180,000 jobs during the month. Average hourly earnings are expected to have increased by 0.3% in October, following a 0.2% gain in September. (USNFAR=ECI), (USAVGE=ECI). A Japanese markets holiday has trussed the yen to around 150.40 per dollar, towards the end of a whirlwind week when it hit a one-year low against the dollar and 15-year low against the euro after the Bank of Japan tweaked its yield curve control policy. Traders however remain on watch for signs of intervention from Japanese authorities. Key developments that could influence markets on Friday: Q3 Earnings: Societe Generale SA (SOGN.PA), Swiss Re AG (SRENH.S), AP Moeller - Maersk A/S Economic data: U.S. October payrolls, Germany Sept trade, France Sept industrial production, euro zone Sept jobs Speakers: BOE's Jonathan Haskel, Andrew Hauser. Bank of England chief economist Huw Pill gives an online presentation of the central bank's new forecasts and latest policy decision Debt auctions: United Kingdom - Reopening of 1-month, 3-month and 6-month government debt auctions https://www.reuters.com/markets/europe/global-markets-view-europe-2023-11-03/
2023-11-03 04:55
MUMBAI, Nov 3 (Reuters) - Indian lenders have told the central bank that its plan to sell government bonds and its intervention in the foreign exchange market has hurt trading volumes, four bankers said on Friday. Officials of the Reserve Bank of India (RBI) met select lenders on Thursday, where these issues, among others, were discussed, according to bankers aware of the development. "Since the RBI has announced its intention to conduct open market bond sales, trading volumes have gone down sharply and yields are stuck in a very narrow range," one of the bankers said. "There is hardly any interest to go for big positions on either side." All the bankers requested anonymity as they are not authorised to speak to the media. The RBI did not reply to a Reuters' email seeking comment. The central bank on Oct. 6 said that it plans to sell bonds via auctions to manage banking system liquidity. The unexpected announcement pushed bond yields higher. Since Oct. 9, the 10-year benchmark yield has been stuck in a narrow 11-basis-point range, due to uncertainty about the timing and tenor of the bond sales, which has hurt volumes. Meanwhile, a lack of volatility in the currency market over the last few weeks has also hit banks' trading activity. "The rupee market is literally dead due to heavy central bank interventions," a trader with a private bank said. "Such low volatility has significantly impacted the activity on the prop (proprietary) book." The rupee stayed in a narrow 83.04-83.28 band against the U.S. dollar in October, the narrowest range since 2004. The intraday volatility in the pair has halved this fiscal year from the last fiscal, according to Kotak Securities. At the meeting on Thursday, the central bank queried banks on the skewed liquidity distribution in the banking system and also discussed an upcoming sale of green bonds to get a sense of the demand, the bankers said. Last month, the central bank had nudged banks to lend surplus funds to their peers in the interbank call money market. https://www.reuters.com/world/india/indian-lenders-flag-trading-hit-cenbanks-debt-sale-plan-dull-rupee-2023-11-03/
