2023-11-02 11:04

Nov 2 (Reuters) - HF Sinclair (DINO.N) on Thursday beat third-quarter profit estimates on strong results from its lubricants and specialty products segment. Core profit from the segment jumped to $118.4 million in the quarter, compared with $15.2 million reported last year. The company's lubricants and specialty products segment is the integrated business of processing feedstocks into base oils and processing base oils into finished lubricant products along with the packaging, distribution and sales to customers. The company reported an adjusted profit of $4.06 per share for the quarter ended Sept. 30, compared with analysts' average estimate of $3.67, according to LSEG data. https://www.reuters.com/business/energy/hf-sinclair-beats-third-quarter-profit-estimates-2023-11-02/

2023-11-02 10:49

FRANKFURT, Nov 2 (Reuters) - The euro zone is unlikely to see a new boom in consumption as savings accumulated during the COVID-19 pandemic are largely held by the richest households, the European Central Bank said in a blog posting on Thursday. The findings may strengthen the ECB's view that inflation was now set to continue a gentle decline towards 2% and bolster arguments to keep interest rates on hold after an unprecedented streak of hikes drove them to record highs. The ECB found that the 20% of households with the highest income held 49.3% of the excess savings made in 2020-22, followed by the next quintile at 19.8%. Since richer people are less likely to spend every additional euro saved, this meant those savings were unlikely to be deployed any time soon. The blog's authors found some of those savings had been invested in financial assets, such as stocks and bonds, or in property, making them harder to access. "Those hoping that the money put aside during the pandemic will support a surge in consumption any time soon will likely be disappointed," wrote authors Niccolò Battistini and Johannes Gareis. "This is a highly relevant insight for assessing what drives inflation and how monetary policy needs to respond." The ECB left interest rates unchanged last week and investors expect it to start cutting them in the spring as inflation falls and the economy stagnates, or even shrinks. https://www.reuters.com/markets/europe/ecb-sees-no-consumption-boom-rich-have-most-savings-2023-11-02/

2023-11-02 10:38

Norges Bank holds policy rate at 4.25% as expected Plans December rate hike but inflation outlook will decide OSLO, Nov 2 (Reuters) - Norway's central bank kept its benchmark interest rate unchanged at 4.25% on Thursday, as widely expected, and said it would likely raise the cost of borrowing next month unless inflation showed a continued decline. All 29 economists polled in advance by Reuters had expected rates to stay on hold on Thursday but were divided over whether the bank would hike to 4.50% in December. "Based on the committee's current assessment of the outlook, the policy rate will likely be raised in December," Norges Bank Governor Ida Wolden Bache said in a statement. "If the committee becomes more assured that underlying inflation is on the decline, the policy rate may be kept on hold," she added. The crown strengthened to 11.81 against the euro at 0915 GMT, from 11.83 just before the announcement. "Norges Bank still warns it will hike in December, though it has become more uncertain," Nordea Markets analysts said in a note. "We believe interest rates will be kept on hold due to lower inflation figures than Norges Bank estimates." Norwegian consumer prices have fallen faster than expected in recent months, below the central bank's forecasts as well as those of analysts, but they still exceed the official 2.0% inflation target. Headline annual inflation stood at 3.3% in September, down from 4.8% in August and below Norges Bank's forecast of 4.2%. Core inflation, which excludes energy costs and changes in taxation, stood at 5.7% in September, below a central bank prediction of 6.2% and down for a third straight month since hitting a record in June of 7.0%. "The labour market is still tight, but pressures in the Norwegian economy are easing. Inflation is markedly above the 2% target. Consumer price inflation has moved down, but underlying inflation is high," Norges Bank said. "In the committee's assessment, the policy rate is likely close to the level needed to tackle inflation, which provides the Committee with a little more time to assess whether there is a need to raise the policy rate further," it added. The Norwegian crown has resumed a weakening trend in recent months, falling against the euro, the dollar and other currencies, causing concern this may stoke inflation as imports become more expensive. On a trade-weighted basis, the currency had weakened by around 6% from early August until Wednesday's market close. The U.S. Federal Reserve on Wednesday kept rates steady as policymakers struggled to determine whether more increases were needed or not. The European Central Bank kept its policy on hold last week, as expected, maintaining the benchmark rate at a record 4.0% and hinted at a steady policy for the time being. The Bank of England will also announce its latest rate decision on Thursday and is expected to stay on hold. (This story has been refiled to say core inflation, not cone, in paragraph 9) https://www.reuters.com/markets/europe/norway-keeps-interest-rates-hold-eyes-december-hike-2023-11-02/

2023-11-02 10:31

LONDON, Nov 2 (Reuters) - The pound edged higher on Thursday ahead of an interest rate decision from the Bank of England, while the dollar fell after the U.S. Federal Reserve held borrowing costs steady on Wednesday. Sterling GBP=D3> was last up 0.29% at $1.2185. The currency fell to a seven-month low of $1.2039 in early October and has since traded in a range just above that level. Investors and economists expect the Bank of England to keep interest rates at a 15-year high on Thursday and to signal that it plans to keep them at the current 5.25% level for an extended period. Signs of a slowdown in much of the British economy have become clearer since the Bank held rates at its last meeting, although inflation remains stronger than in many other major economies. The Fed on Wednesday held rates in the 5.25% to 5.5% range, their highest level in 22 years. Chair Jerome Powell said the central bank may need to raise rates again but was comfortable waiting to see whether the latest run of strong economic data continues. Traders interpreted the Fed decision and Powell's comments as relatively dovish on inflation, leading U.S. bond yields to fall and bring the dollar down with them. The dollar index , which tracks the greenback against its major peers, was last down 0.28% at 106.17. It has traded sideways since hitting an almost one-year high of 107.34 in early October on the back of a sharp rise in U.S. bond yields driven by strong economic growth. Joe Tuckey, head of FX analysis at broker Argentex, said the muted trading in currency markets in recent weeks was due to the fact that central banks are in "wait-and-see mode" on rates and inflation. "We've reached the point now with these central bank meetings when we're in a bit of a holding pattern, so it makes sense to see some reduced volatility and consolidation," he said. "We come to the Bank of England today and it's incredibly unlikely that they'll do anything and we're now in wait-and-see mode." The euro was up 0.28% against the pound at 87.23 pence on Thursday. It has also been range-bound over the last month but is down 1.5% against sterling this year. The pound was one of the more subdued currencies in global markets on Thursday. The euro rose 0.5% against the dollar as investors sold the same-haven dollar, encouraged by the fall in global borrowing costs after the Fed meeting and smaller-than-expected government borrowing from the U.S. Treasury. https://www.reuters.com/markets/currencies/sterling-edges-higher-ahead-boe-decision-dollar-cools-2023-11-02/

2023-11-02 10:28

LONDON, Nov 2 (Reuters) - Britain's Office for National Statistics said it would aim to restore some labour market statistics from November onwards, after having to scale back heavily its release in October due to low response rates to its main survey. November's release would be similar to October's experimental data, with additional regional data. For December, the ONS said it would try to restore its standard employment bulletin, subject to improvements in data collection and methodology. https://www.reuters.com/world/uk/uk-aims-improve-labour-market-data-november-december-2023-11-02/

2023-11-02 10:13

NEW YORK, Nov 2 (Reuters) - Sam Bankman-Fried's fraud trial has given an unprecedented window into how a group of graduates from elite U.S. universities in their late 20s and early 30s tried, and ultimately failed, to avert one of the biggest and swiftest corporate meltdowns ever. Now, the 31-year-old former billionaire's fate could hinge on how jurors view his actions in the 10 days before the FTX cryptocurrency exchange's collapse nearly one year ago. During the monthlong trial in Manhattan federal court, jurors have seen social media posts made by Bankman-Fried during that week assuring panicked FTX customers their funds were safe. They have also seen internal text messages showing Bankman-Fried and other executives discussed a shortfall in funds and debated how to spin the events. Prosecutors say Bankman-Fried used customer funds to pay lenders to his Alameda Research hedge fund, and that his false assurances to anxious customers in November 2022 were a critical part of his fraud scheme. The jury deliberations, set to begin on Thursday, will take place behind closed doors. But the 10-day window before FTX's Nov. 11, 2022, bankruptcy declaration could be a significant part of their discussions. FTX's death spiral began on Nov. 2 when crypto news outlet CoinDesk published an Alameda balance sheet showing it held large quantities of FTT, FTX's in-house token - suggesting close ties between the exchange and a trading firm that Bankman-Fried said on Twitter was treated like any other customer. Nothing happened at first, testified Caroline Ellison, Alameda's former CEO and Bankman-Fried's on-and-off girlfriend. But on Nov. 6, FTX's chief engineering officer Nishad Singh wrote her and Bankman-Fried on encrypted messaging application Signal to say FTX customers had withdrawn $1.25 billion over the past day. "Oof," Bankman-Fried replied, in a message jurors saw. The Massachusetts Institute of Technology graduate testified net withdrawals rarely exceeded $50 million before then. 'THIS MIGHT SPELL DOOM' Later that day, Changpeng Zhao, chief of rival crypto exchange Binance, wrote on Twitter that his exchange had decided to sell its stockpile of FTT "due to recent revelations that have came to light." With withdrawals piling up, former FTX chief technology officer Gary Wang testified that Singh - a 2017 graduate of the University of California at Berkley - knocked on the door to his bedroom in the $35 million penthouse apartment they shared with seven other FTX and Alameda employees in the Bahamas, where the exchange was based. FTX could not process the withdrawals fast enough, and Wang testified that Singh needed his help to speed its systems up. "I was very concerned that this might spell doom," Singh - who, alongside Wang and Ellison, pleaded guilty to fraud charges and agreed to cooperate with prosecutors - testified. Wang, a 30-year-old MIT graduate, said Bankman-Fried asked him that day to figure out how much additional money FTX needed to satisfy customer withdrawals. Wang ran some calculations, and then told Bankman-Fried the answer: $8 billion. "That sounds correct," Bankman-Fried responded, with a neutral demeanor, according to Wang. Bankman-Fried then created a Signal group of executives to discuss "potential fundraising," Ellison testified. Early on Nov. 7, Bankman-Fried sent tables estimating customer funds at $12 billion, about $8 billion more than the $3.9 billion in cash FTX could pull together within a week. In a message seen by jurors, Bankman-Fried suggested four options: call venture capitalists, send a "confident tweet thread," halt withdrawals, or reduce the values of deposits. "What we need is a few billion of USD," Bankman-Fried wrote in a document shared with the group. "We will take whatever we can get." 'FTX IS FINE' Later that morning, Bankman-Fried posted on Twitter, "FTX is fine. Assets are fine ... FTX has enough to cover all client holdings. We don't invest client assets (even in treasuries)." Ellison, Wang and Singh each testified that the post on the platform now known as X was misleading. Testifying in his own defense, Bankman-Fried said he thought the post was accurate at the time and deleted it a day later after a plunge in the value of cryptocurrencies held by Alameda. After posting the tweet, Bankman-Fried turned to raising capital. Can Sun, FTX's former general counsel, testified that around 1 p.m. he was asked to join a call with private equity firm Apollo, which asked to see FTX's financial statements before potentially providing emergency capital. Sun said he was "shocked" when the spreadsheet he received showed FTX was short $7 billion. He sent it to Apollo anyway. He said Bankman-Fried later told him Apollo had asked for a "legal justification" for the missing funds. That evening, he told Bankman-Fried there was no justification. "Sam basically said something like, got it. He was not surprised at all," Sun testified. There would be no bailout from Apollo. Late on Nov. 7, Bankman-Fried reached out to Zhao - whose tweet less than two days earlier accelerated the run on FTX - and struck an initial deal for Binance to acquire FTX. "I was extremely relieved," said Ellison, a 28-year-old Stanford graduate. "If the deal went through, it would mean that all of FTX customers would get their money back." But the deal fell through on Nov. 9. Singh, who testified that he was suicidal at the time, returned to the U.S. that day. Ellison moved back to her parents' house on Nov. 11, when FTX declared bankruptcy. Wang left the Bahamas on Nov. 16. All three would have their first meetings with federal prosecutors by the end of the month. https://www.reuters.com/legal/sam-bankman-fried-trial-gives-jury-inside-view-ftxs-final-days-2023-11-02/