2023-10-30 15:14

BRASILIA, Oct 30 (Reuters) - Brazil's Finance Minister Fernando Haddad on Monday said President Luiz Inacio Lula da Silva will nominate Paulo Picchetti as central bank director of international affairs and Rodrigo Alves Teixeira as director of institutional relations. The nominations must receive approval from the Senate before the new directors can take office. They will replace outgoing directors Fernanda Guardado and Mauricio Moura, whose terms are set to expire at the end of December. With the new picks Lula, who took office in January with harsh criticism of the central bank's monetary policy, will see four of his chosen candidates seated on its nine-member board. Government officials had told Reuters that the president was moving swiftly to secure his nominations so that the new directors could vote on the first policy decision of 2024. Picchetti, a professor at Fundacao Getulio Vargas (FGV), is widely regarded by the market as a close associate of Haddad. He holds a master's degree in economics from the University of Sao Paulo (USP) and a doctorate from the University of Illinois. "Picchetti's appointment to the central bank is very positive," Warren Rena's chief economist Felipe Salto said. "He is an extremely respected academic, with extensive experience in inflation and price indexes." Teixeira, meanwhile, is career civil servant at the central bank. He holds a degree in economics and earned both his master's and Ph.D. from USP. He held two positions in the Sao Paulo city government during Haddad's tenure as mayor. The central bank nominations have been closely monitored by analysts, as some expect that as Lula's nominees gain more influence in the board, the central bank's approach to fighting inflation may become more lenient. Policymakers acknowledge this perception as a potential hindrance to anchoring inflation expectations in line with the official target. The central bank kicked off an easing cycle in August after holding its benchmark interest rate unchanged at a cycle high for nearly a year to battle inflation. So far, interest rates have been reduced by 100 basis points to 12.75%, and policymakers have flagged their intent to keep implementing 50 basis-point cuts in the upcoming meetings. https://www.reuters.com/markets/brazils-lula-appoint-picchetti-teixeira-cenbank-board-2023-10-30/

2023-10-30 15:08

Oct 30 (Reuters) - The tentative agreements reached between the United Auto Workers and the Detroit Three automakers mark another major victory for labor unions that have turned up the pressure on big corporations to put better deals on the table. Unions have taken an aggressive approach to campaigning with a series of high-profile battles across the industrial, auto, entertainment and healthcare industries. Experts say gains won by unions could spur more organizing and motivate non-unionized companies to try to stave off those efforts. The UAW's talks, replete with weekly addresses by union President Shawn Fain, were among the most unabashed. The union came to tentative agreements with Ford Motor (F.N) and Chrysler parent Stellantis (STLAM.MI) in recent days, followed by General Motors (GM.N) early Monday. "This is a set of negotiations, historically, where gains made in Detroit would be viewed and adapted by many other industries across the economy," said Harley Shaiken, labor professor at the University of California, Berkley. Union worker compensation has finally caught up to non-union wage increases dating from the COVID-19 pandemic, according to U.S. federal data, as the labor market has remained tight with unemployment at just 3.8%. The tentative deals are expected to amount to total pay hikes of more than 33% when compounding and cost-of-living increases are factored in. The agreements may be a selling point for non-union shops to push for unionization, said San Francisco State University labor and employment professor John Logan. "The Big Three would want the UAW to organize Tesla," he added. Nissan (7201.T) and other competitors may feel compelled to boost wages to retain their workforce. The union made its intention to expand autoworker unionization clear in a series of posts on social media late Sunday that highlighted the length of the contract, which ends in 2028. "One of our biggest goals coming out of this historic contract victory is to organize like we’ve never organized before," the UAW wrote. "When we return to the bargaining table in 2028, it won’t just be with the Big Three, but with the Big Five or Big Six." Public support for unions has helped engagement in traditionally unionized industries such as manufacturing and healthcare. A Reuters poll showed the majority of Americans stand behind striking workers. Employee-led unionization efforts at retailers, such as Amazon (AMZN.O) and Starbucks (SBUX.O), have reflected a consensus among workers who see unions as a means to secure better wages and working conditions. Organization has been difficult in recent years. About 11.3% of workers were represented by unions last year compared with 23.6% in 1982, according to data analyzed by the Economic Policy Institute. RIPPLE EFFECT The UAW contracts are among many deals reached this year, along with agreements at UPS and construction equipment maker Caterpillar (CAT.N). Workers at other companies, like Mack Truck and equipment makers CNH Industrial (CNHI.MI) and Deere & Co (DE.N) have all rebuffed initial deals despite raises that in some contracts appeared significant. Increased awareness among workers about record profits has translated to company concessions and improved deals, said Marcos Feldman, senior researcher at Jobs to Move America, a labor organizing nonprofit. "The task is to solidify and institutionalize it," Feldman said. "Unionizing efforts are the most aggressive they've ever been." President Joe Biden considers unions a cornerstone of his economic policies, including the $1.2 trillion bipartisan infrastructure law to boost American manufacturing. Employers may respond by boosting worker pay to hold off union efforts, or step up efforts to prevent unionization. Some Starbucks employees have claimed the coffee chain illegally retaliated against organizers by firing employees and closing stores. Earlier this month the U.S. Department of Labor ordered the company to disclose documents pertaining to anti-union spending. Amazon has dissuaded unionization, with the National Labor Relations Board (NLRB) recently ruling the e-commerce giant had threatened to withhold wages and benefits from employees at two New York warehouses. UPS AND ITS RIVALS The UPS deal in August raised pay and eliminated a two-tier wage system for drivers at the Atlanta-based company. That bolstered organizing efforts among Amazon workers and put pressure on UPS rivals to close a growing gap in pay. When the new UPS agreement expires in 2028, the average full-time U.S. driver will make about $170,000 annually in pay and benefits, significantly more than peers employed by contractors for Amazon and FedEx (FDX.N). Amazon in September gave delivery contractors $440 million for the year to raise average driver pay to an estimated $20.50 per hour. Amazon told Reuters that payment was part of normal increases and not influenced by the UPS contract. It did not provide prior-year comparisons. FedEx said it regularly reviews pay for directly employed delivery workers to ensure that it is competitive and that its delivery contractors set their own wage rates. "One thing we've seen in this economy is that workers are more likely to quit when they are unhappy," said Kate Bronfenbrenner, director of labor education research at Cornell University. "Industries where they're more likely to stay are the ones where they unionize and they stay and fight." https://www.reuters.com/business/autos-transportation/uaws-record-deal-could-boost-others-wages-labor-notches-another-victory-2023-10-30/

2023-10-30 12:46

Rate announcement due on Nov. 2 All analysts predict unchanged rate May hike again by year-end OSLO, Oct 30 (Reuters) - Norway's central bank is expected to keep its key policy interest rate on hold this week but could hike borrowing costs again by the end of the year to help rein in inflation and support the country's faltering currency, a Reuters poll showed. Norges Bank's monetary policy committee in September raised the benchmark rate by 25 basis points (bps) to 4.25%, a 15-year high, and said it would "likely" hike one more time in December if the economy developed broadly as expected. All 29 economists polled in the Oct. 25-30 period predicted Norges Bank would announce on Thursday an unchanged rate, but many also acknowledged they were uncertain over what would happen next. For the December meeting, the final one of the year, 16 economists predicted a hike to a peak rate of 4.50%, while 12 of those polled expected no change from the current 4.25%. One economist forecast a rate of 4.75%. 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 inflation stood at 3.3% year-on-year in September, down from 4.8% year-on-year in August, as food and energy costs fell, and was well below Norges Bank's forecast of 4.2%. Core inflation also declined more than predicted. On the other hand, the Norwegian crown currency has resumed a weakening trend against the euro and the dollar, causing concern this may again stoke inflation as imports become more expensive. October and November inflation, as well as gross domestic product for the third quarter, which will all be released ahead of the December rate decision, could eventually determine the next move, several analysts said. The central bank would likely spell out the uncertainty in its statement this week, brokers DNB Markets said. "We expect Norges Bank to stress that the policy decision in December will be data dependent and reiterate the guiding for a possible rate hike," DNB wrote in a note to clients. 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. https://www.reuters.com/markets/europe/norway-keep-rates-hold-this-week-may-hike-december-2023-10-30/

2023-10-30 12:01

Oct 30 (Reuters) - Canadian Solar (CSIQ.O) said on Monday it would invest $800 million to build a solar photovoltaic (PV) cell production facility at the River Ridge Commerce Center in Jeffersonville, Indiana. The company said the plant would produce cells with an annual output of 5 gigawatts (GW), equivalent to about 20,000 high-power modules per day. The Guelph, Ontario-based company said cells produced at Jeffersonville facility would be used at its 5 GW module assembly plant in Mesquite, Texas, the company's first manufacturing facility in the U.S., announced in June. Shares in the company, which is exiected to start production at the Jeffersonville facility by the end of 2025, were up 1.56% at $19.51 in premarket trading. https://www.reuters.com/business/energy/canadian-solar-invest-800-mln-build-cell-manufacturing-plant-2023-10-30/

2023-10-30 11:57

DUBAI, Oct 30 (Reuters) - The United Arab Emirates President of COP28 on Monday urged countries to seek "common ground" to resolve disagreements over the future of fossil fuels ahead of a U.N. climate summit he will host from the end of the month. The summit, from Nov. 30 to Dec. 12, will seek agreement on phasing out fossil fuels. But countries are divided between those demanding a deal to phase out the burning of coal, oil and natural gas that produce the greenhouse gases that are the main cause of climate change and nations insisting on preserving a role for fossil fuels. "I know there are strong views about the idea of including language on fossil fuels and renewables in the negotiated text," Sultan al-Jaber told the Pre-COP28 summit convened in Abu Dhabi with around 70 ministers and 100 delegations in attendance. "I need you to work together to come forward with solutions that can achieve alignment, common ground and consensus between all parties," he said. European countries and climate-vulnerable states want the COP28 talks to land a package of measures to cut planet-warming emissions faster, including a pledge to triple global renewable energy capacity by 2030 and phase out CO2-emitting fossil fuels. Spanish Energy Minister Teresa Ribera said on Monday the Pre-COP talks had not yet delivered any breakthroughs, but should help countries understand one another's positions as a first step towards finding compromises. "We don't see yet much movement... it is the first time that we go through these detailed explanations on why the positions are what they are, where their priorities may be, which is very important," she told Reuters. After a year of extreme weather, the COP28 summit is a chance for governments to accelerate action to limit global warming. The choice of Jaber to lead the climate talks drew criticism from some U.S. and EU lawmakers because he is the boss of the UAE's state oil firm ADNOC, as well as the country's climate envoy. He has called for the summit to bring together all stakeholders, including in the fossil fuel industry and has said that the phase down of fossil fuels was inevitable. Phasing down suggests countries should reduce, but not entirely eliminate, their fossil fuel use. European and climate-vulnerable states want to go further, and agree to eventually phase out all CO2-emitting fossil fuels. https://www.reuters.com/business/environment/uaes-jaber-urges-pre-cop28-summit-align-fossil-fuel-renewables-language-2023-10-30/

2023-10-30 11:55

LONDON, Oct 30 (Reuters) - Britain’s Treasury could lose out on 3 billion pounds ($3.6 billion) of revenue a year from the sale of carbon permits, an industry report said on Monday, after prices on its post-Brexit emissions trading system fell this year faster than in the EU. Britain's ETS, launched in 2021, works like the EU system it replaced, requiring manufacturers, power companies and airlines to pay for each metric ton of carbon dioxide they emit to help meet climate targets. Britain's ETS had mostly tracked the cost of carbon in the EU or traded above it, until April this year, when Britain announced changes, tightening a cap on the scheme but signalling that it would release more permits from a reserve. Since then, the UK carbon price has fallen by more than 40% while the EU carbon price has fallen by only around 18%. "Over the last 6 months, carbon prices from the UK’s Emissions Trading Scheme (ETS) have raised over 1 billion pounds less than if prices had remained at last year’s levels," a report by industry group Energy UK said. "If low carbon prices persist, the Treasury could lose out on 3 billion pounds in revenue per year," the report said. Under the system polluters buy government issued carbon allowances which are sold via near weekly auctions, with the money raised going to the treasury. Energy UK said the imposition of a carbon border tax from 2026 on some goods being imported to Europe could impact British industries covered by the tax if the difference in prices remains. Europe’s carbon border tax will impose fees on imports of emissions-heavy goods including steel, aluminium and cement - unless the exporting country has equal CO2 pricing policies. Energy UK said the government should work to link its ETS with the EU’s to avoid such penalties. A spokesperson for Britain's Department for Energy Security and Net Zero said the ETS was a key tool in helping the country meet its climate targets and that fewer permits would be auctioned by 2027. “We are following developments on the EU’s Carbon Border Adjustment Mechanism closely and looking at the potential impact this may have on UK businesses," the spokesperson said. ($1 = 0.8247 pounds) https://www.reuters.com/world/uk/britains-post-brexit-carbon-pricing-could-cost-treasury-billions-report-2023-10-30/