2023-11-02 15:47

LONDON, Nov 2 (Reuters) - Shell's finance chief said on Thursday the firm had exited a power purchase agreement (PPA) for the planned SouthCoast windfarm off the coast of Massachusetts, agreeing to pay a penalty rather than face rising costs for building the project. Energy firms from BP (BP.L) to Orsted (ORSTED.CO) have announced hefty writedowns in recent days for their U.S. windfarm projects in the face of high inflation. https://www.reuters.com/business/energy/shell-exits-us-southcoast-wind-farm-contract-agrees-pay-penalty-2023-11-02/

2023-11-02 14:42

Nov 2 (Reuters) - Canada's Bombardier (BBDb.TO) reported third-quarter results on Thursday that beat analysts' estimates, helped by robust demand for its pricier business jets and aftermarket services, sending shares up 9% in morning trade. Corporate jet makers continue battling supply chain challenges to meet demand from wealthy buyers, following a surge in orders and private flying during the pandemic. But economic headwinds, and recent signs of flattening demand are raising investor concerns, even as some planemakers aim to produce more jets. North American flight activity fell 4.2% in September 2023 compared with the same month a year earlier, according to Argus International. Bombardier Chief Executive Eric Martel told reporters that the company is planning for more deliveries in 2024, without disclosing a specific figure, compared with this year's target of more than 138 aircraft. Montreal-based Bombardier is targeting deliveries of 150 jets for 2025. Bombardier's order backlog fell to $14.7 billion at the end of the third quarter, from $14.9 billion at the end of the second quarter. Bombardier has increased inventories to support higher deliveries compared with 123 in 2022. "Supply chain is difficult, but we are not using it as an excuse for missing our commitments," Chief Financial Officer Bart Demosky told an analyst call. Last month, Cessna business jet maker Textron (TXT.N) raised its annual profit outlook and said it expects higher deliveries in 2024 as supply chain improves. Bombardier generated $80 million in free cash, a metric closely watched by investors, in the third quarter, compared with $52 million a year earlier. Revenue from Bombardier's aftermarket business, which provides maintenance services, rose 11% to $414 million. Bombardier posted revenue of $1.86 billion beating expectations of $1.75 billion, as it delivered six more business jets in the quarter than a year earlier. Excluding items, Bombardier earned 73 cents per share, compared with estimates of 46 cents. https://www.reuters.com/business/aerospace-defense/bombardier-posts-higher-revenue-adjusted-profit-strong-private-jet-demand-2023-11-02/

2023-11-02 13:48

LONDON, Nov 2 (Reuters) - After almost two years of aggressive monetary tightening, the world's biggest central banks are taking time out before weighing up their next move. The Bank of England on Thursday left interest rates at 15-year high, a day after the U.S. Federal Reserve also kept rates unchanged. Focus in financial markets has shifted to when central banks will start easing policy as economic growth slows and inflation eases. In total, nine developed economies have raised rates by a combined 3,965 basis points (bps) in a cycle that started in September 2021. Japan is the holdout dove. Here's where central banks stand, from hawkish to dovish: 1) UNITED STATES The Federal Reserve kept rates on hold at 5.25%-5.50% on Wednesday as policymakers struggled to determine whether financial conditions may be tight enough already to control inflation, or whether an economy that continues to outperform expectations may need still more restraint. Markets rallied on hopes that the Fed is done with monetary tightening. 2) NEW ZEALAND New Zealand's central bank was one of the first to kick off rate hikes in 2021 but the tightening that pushed the key cash rate to a 15-year high of 5.5% in May has likely come to an end as the economy softens. Markets now imply only a 10% chance of another hike at the RBNZ's next policy meeting in late November. 3) BRITAIN The Bank of England on Thursday held interest rates at their 15-year peak and stressed that inflation risks were skewed to the upside. It also said the UK economy would not grow at all in 2024. Rate cut predictions barely moved after Thursday's decision, still pricing a substantial chance of rate cuts from August 2024. 4) CANADA The Bank of Canada held its key overnight rate at 5% on Oct. 25. Market pricing suggests investors see the pause continuing for some time. The central bank is prepared to raise rates further if inflation persists, Governor Tiff Macklem said on Oct. 30. 5) EURO ZONE The European Central Bank kept its key rate at 4% last week, noting that latest data continued to point to inflation slowly coming down to its 2% target. With inflation now falling fast and evidence of a slowdown growing, investors have brought forward rate cut bets. Money markets price in a 25 bps rate cut by April. 6) NORWAY The Norges Bank left its key rate on hold at 4.25% on Thursday and reiterated that it was likely to raise rates in December. Inflation in Norway fell faster than expected in September. But the Norges Bank on Thursday said staying on pause would require more assurance that underlying price pressures are abating. 7) SWEDEN Sweden raised its main interest rate to 4% in September and faces an unenviable choice about what comes next. Economists polled by Reuters see Sweden's economy shrinking by 0.7% in 2023. Swedish inflation, excluding volatile energy costs, was an uncomfortably high 6.9% in September. 8) AUSTRALIA Chances of an imminent rate hike from the Reserve Bank of Australia grew on Wednesday after data showed house prices rebounding to near record highs and the International Monetary Fund recommended tightening monetary and fiscal policy screws to curb inflation. Markets are pricing a near-70% chance that the RBA will raise rates by a quarter point to 4.35% on Nov. 7. 9) SWITZERLAND Futures markets tip the Swiss National Bank (SNB) to hold its policy rate at 1.75% in December before assessing what to do next. The Swiss franc hit its highest against the euro since 2015 on Oct. 20 , before falling back somewhat, after the outbreak of conflict in Gaza extended a long run of Swiss currency strength. The mighty franc has helped the SNB control inflation, which came in at 1.7% in October. It also threatens Swiss exports at a time when the economy is stagnating. 10) JAPAN The Bank of Japan (BOJ) on Tuesday kept ultra-low interest rates steady but tweaked its controversial 1% cap on the 10-year bond yield to allow long-term borrowing costs to rise more. The BOJ also raised price forecasts to project inflation will well exceed its 2% target this year and next. The yield cap change underwhelmed investors who expected a stronger move. It took unusually pointed warnings about currency intervention from Japan's top currency diplomat Masato Kanda on Wednesday to halt a slide in the yen that took it the brink of a 33-year low. https://www.reuters.com/markets/after-aggressive-rate-hikes-big-central-banks-take-time-out-2023-11-02/

2023-11-02 11:53

Oil futures trading 1% higher on Thursday U.S. Federal Reserve held rates steady on Wednesday Israeli forces fight Hamas around Gaza City Bank of England interest rate decision expected 1200 GMT London, Nov 2 (Reuters) - Oil gained 1% on Thursday to snap its three-day decline, as risk appetite returned to financial markets after the U.S. Federal Reserve kept benchmark interest rates on hold. Brent crude futures rose $1.03, or 1.22%, to $85.66 a barrel by 1149 GMT, while U.S. West Texas Intermediate crude futures gained $1.02, or 1.27%, to $81.46 a barrel. Oil's rally tracked gains across financial assets after the Fed kept its benchmark interest rate unchanged at 5.25%-5.50% at its latest meeting on Wednesday. "Asset markets reacted positively to the Fed yesterday and I think oil has followed that by moving a bit higher," said Callum Macpherson, head of commodities at Investec. Policymakers struggled to determine whether financial conditions may be tight enough already to control inflation, or whether an economy that continues to outperform expectations may need still more restraint. U.S. inflation held at 3.4% in September for the third consecutive month. "There is still some way to go to achieve the 2% target, nonetheless monetary tightening has been working effectively and additional rate increase would probably do more harm than good," Tamas Varga, analyst at broker PVM, said. Meanwhile in Europe, a contraction in manufacturing activity in the euro zone deepened in October, with Purchasing Managers' Index (PMI) falling by 0.3 points on the month to 43.1. A score of below 50 signals contraction. A Bank of England meeting later on Thursday is expected to result in interest rates being held steady. Investors will also be watching for developments in the Middle East, which has kept oil markets on edge as a wider conflict could disrupt oil supplies around the region. Fighting raged on around Gaza City on Thursday as advancing Israeli tanks and troops encountered fierce resistance from Hamas militants. https://www.reuters.com/business/energy/oil-prices-edge-higher-middle-east-conflict-stokes-supply-concerns-2023-11-02/

2023-11-02 11:44

Nov 2 (Reuters) - PayPal Holdings (PYPL.O) added nearly $4 billion to its market value after a pledge to turn "leaner" fired up investors, even as the payments giant disclosed a subpoena from the U.S. Securities and Exchange Commission tied to its stablecoin. The company's shares closed nearly 7% higher at $55.06 on Thursday as a strong full-year profit forecast also calmed market jitters about a spending slowdown. "Simply put, our cost base remains too high," the company's new CEO, Alex Chriss, said on Wednesday, adding that PayPal would align its resources to its "most profitable growth priorities." The upbeat forecast underscored the robustness of consumers' financial health, which has allowed them to keep up with their spending binge even as the economic climate remains uncertain. "Chriss struck the right note and articulated well the challenges facing the company and described a sound framework for improving growth and profitability," J.P.Morgan analyst Tien-tsin Huang said. Brokerage William Blair also said it was "encouraged by management's narrowed focus on profitable growth." Shares of PayPal's peer Block (SQ.N) also climbed to close 7.4% higher. SEC RAMPS UP PRESSURE ON CRYPTO The SEC's subpoena indicates that the regulator is keeping up pressure on the cryptocurrency industry despite recently losing a high-profile court case against digital asset manager Grayscale Investments. PayPal said it was cooperating with the subpoena from the SEC's Enforcement Division, which has asked for the production of documents. Stablecoins are crypto tokens whose monetary value is pegged to a stable asset to protect potential investors from wild swings in prices. The company became the first major financial technology firm to embrace digital currencies for payments and transfers when it launched its dollar-backed stablecoin in August. Separately on Thursday, the company named insider Archie Deskus its new chief technology officer, just a day after a naming Jamie Miller its new finance chief. https://www.reuters.com/technology/paypal-receives-sec-subpoena-tied-stablecoin-2023-11-02/

2023-11-02 11:44

Nov 2 (Reuters) - ConocoPhillips (COP.N) on Thursday beat Wall Street's third-quarter profit estimates, as the U.S. shale producer benefited from higher output, and raised its quarterly dividend by 14%. Benchmark Brent crude averaged $85.67 a barrel in the first three months of 2023, nearly 13% lower than last year, but still well above the levels that allow oil and gas producers to drill profitably. Crude prices had surged to multi-year highs last year after Russia's invasion of Ukraine upended global energy markets. ConocoPhillips said production for the third quarter was 1.806 million barrels of oil equivalent per day (boepd), an increase of 52 thousand (boepd) from a year earlier. "For the third consecutive quarter, we achieved record production," CEO Ryan Lance said in a statement. The largest U.S. independent oil company expects fourth-quarter production to be between 1.86 million and 1.90 million boepd. Full-year production is expected to be about 1.82 million boepd, higher than its prior outlook of 1.80 to 1.81 million boepd, due to the Surmont acquisition. ConocoPhillips purchased remaining 50% interest in Surmont oil sands asset from France's TotalEnergies' (TTEF.PA) Canada unit. The company's earnings were, however, pressured by lower crude prices. It said total average realized price was $60.05 per barrel of oil equivalent (boe), 28% lower than a year earlier, which hurt the company's earnings. Larger rivals Exxon Mobil (XOM.N) and Chevron (CVX.N) posted third-quarter results last week that took a hit from lower oil prices. Excluding items, ConocoPhillips reported a profit of $2.16 per share for the three months ended Sept. 30, compared with analysts' average estimate of $2.08 per share, according to LSEG data. https://www.reuters.com/business/energy/conocophillips-third-quarter-profit-beats-wall-street-estimates-2023-11-02/