2024-08-01 12:41

LONDON, Aug 1 (Reuters) - The Bank of England cut interest rates for the first time since 2020 on Thursday, lowering them from a 16-year high after a narrow vote by its policymakers who split over whether inflation pressures had eased sufficiently. Below are comments from a press conference with Governor Andrew Bailey and other BoE policymakers: BAILEY ON PAY RISE FOR PUBLIC SECTOR WORKERS: "Public sector pay obviously has an effect on demand and it can have a signalling effect. On the whole I think private sector pay tends to lead public sector pay and that's what we've been seeing, actually." "We'll get the full story with the budget, obviously, because we haven't got the full story yet because obviously we don't know how this is going to be funded, the Chancellor's got decisions to make on that front." BAILEY ON WHETHER POLICY IS 'ONE AND DONE' ON RATE RISES: "I'm not giving you any view on the path of rates to come, I'm saying we will go from meeting to meeting, as we always do." BAILEY ON INFLATION PERSISTENCE: "Is the decline of persistence now almost baked in, as the global shocks that drove up inflation unwind, or, we'd also require a period with economic slack in the UK economy, or are we experiencing a more permanent change to wage and price setting which would require monetary policy to remain tighter for longer?" "These have become important questions in the MPC's policy deliberations." BAILEY ON EVENTS IN THE MIDDLE EAST: "I think we have to be very vigilant on this front." "We decided that the risk, the skew that we had in the forecast, up till now, since those events started, we wouldn't retain because of the fact that we haven't seen the signs of it emerging. But I don't for a moment want to give you the impression that means we're not very vigilant about this, because ... things can change very quickly." BAILEY ON FUTURE RATES: "It's reasonable to say that it's unlikely that we are going back to the world we were in between 2009, post the financial crisis, and the point at which we started raising rates. The reason for that is that that world was really driven by very big shocks." "It's much more likely it seems to me that we're going back to a world ... where we will be somewhere around whatever the neutral rate turns out to be." DAVE RAMSDEN ON INFLATION: "The degree of restrictiveness that we've still got, I think everyone on the committee sees that as necessary to squeeze the persistent part of inflation to ensure that inflation stays sustainably at target." RAMSDEN ON QUANTITATIVE TIGHTENING: "We're confident that QT can keep operating in the background, for the next year, consistent with our principles. And given where bank rate now is, if there needs to be some kind of adjustment, we've got more than enough space to do that." Sign up here. https://www.reuters.com/markets/rates-bonds/bank-england-policymakers-speak-after-cutting-rates-16-year-high-2024-08-01/

2024-08-01 12:35

NEW DELHI/BENGALURU, Aug 1 (Reuters) - India's Tata Steel (TISC.NS) , opens new tab will not change its plans on proposed job cuts in Britain, while it evaluates the need for more funding from the new UK government, CEO T. V. Narendran told Reuters in an interview on Thursday. Tata, Britain's biggest steel producer, last month began the process of closing down one of its carbon-intensive blast furnaces, with the shutdown of its other furnace slated for September. The two furnaces shutting down will likely result in the loss of up to 2,800 jobs at Port Talbot in South Wales. Britain's business minister Jonathan Reynolds said in July that the new government was prioritising avoiding job losses in talks with Tata Steel over government backing for a transition to lower-carbon technologies. "The compulsory redundancies, which is the point where the unions, the government and us need to see - how do we address that," Narendran said, adding they would also look at re-skilling. The company is also evaluating the need to seek more funding from the government to build more steelmaking facilities, Narendran said. The new government in Britain will need to sign the 500-million-pound ($635 million) support package that the previous government agreed on with Tata Steel to help build a lower-carbon electric arc furnace. In India, the steelmaker said it had asked the government to look into rising imports, particularly from China. India, the world's second-biggest crude steel producer, turned net steel importer in the fiscal year through March. Finished steel imports scaled a five-year high in April and May, according to provisional government data. "Chinese exports coming directly into India and also indirectly through Southeast Asia is a concern," Narendran said. India's federal Ministry of Steel has asked the trade ministry to investigate cheaper steel imports from China and Vietnam, Reuters reported on Wednesday. Tata Steel expects demand in India to pick up from October through March, Narendran said, driven by the construction sector, automobiles and railways, among others. Sign up here. https://www.reuters.com/markets/commodities/indias-tata-steel-ceo-says-no-change-uk-job-cut-plan-2024-08-01/

2024-08-01 12:25

Aug 1 (Reuters) - Canada's Cenovus Energy (CVE.TO) , opens new tab posted a more than 15% rise in its second-quarter profit on Thursday, as the oil and gas producer got a boost from higher crude prices, refining throughput volumes and production. Brent crude averaged at $85.58 per barrel in the second quarter, 7% higher than the year earlier, buoyed by an extension of a production cut by OPEC+, forecast of strong travel demand and interest rate cuts by the U.S. Federal Reserve. Cenovus raised its total upstream production forecast for the year by 7,500 barrels of oil equivalent per day (boepd) at the midpoint. It now expects output to be between 785,000 boepd and 810,000 boepd for 2024. U.S.-listed shares of the Calgary, Alberta-based company rose 2.2% in premarket trading. Its quarterly production rose nearly 10% to 800,800 boepd, while downstream throughput climbed nearly 16% to 622,700 barrels per day (bpd). Higher crude price and production also drove a second-quarter profit beat at rival Canadian Natural Resources (CNQ.TO) , opens new tab on Thursday. Cenovus CEO Jon McKenzie said the company is now in a position to substantially increase shareholder returns. Beginning in the third quarter, Cenovus will begin returning 100% of excess free funds flow to shareholders. For full-year 2024, the company raised its downstream throughput projection to 640,000 bpd to 670,000 bpd, an increase of 5,000 bpd from its previous forecast at midpoint. Net income rose to C$1 billion ($723.01 million), or 53 Canadian cents per share, in the April-June quarter, from C$866 million, or 44 Canadian cents per share, a year earlier. ($1 = 1.3831 Canadian dollars) Sign up here. https://www.reuters.com/business/energy/canadas-cenovus-energy-posts-higher-second-quarter-profit-estimates-2024-08-01/

2024-08-01 12:14

CHOORALMALA, India, Aug 1 (Reuters) - Indian soldiers rushed to complete construction of a metal bridge on Thursday to connect the worst affected area in the Kerala landslides as the search continued for survivors and bodies after the disaster that has killed at least 189 people. Heavy rain in the southern coastal state of Kerala, one of India's most popular tourist destinations, caused landslides in the hills of Wayanad district early on Tuesday, sending torrents of mud, water and tumbling boulders downhill and burying or sweeping people to their deaths as they slept. Army engineers scrambled to build a 190-foot (58 m) bridge to ferry heavy equipment from the nearest town of Chooralmala to the affected area, Mundakkai, after rising water in a local river washed away a makeshift bridge on Wednesday. The main bridge was washed away in the landslides on Tuesday, cutting off Mundakkai. "Our bridge will be ready in a few hours and once the bridge comes up, it will be a major change," V.T. Mathew, a senior army official in charge of the rescue operations, told Reuters. "We need to search the entire area with heavy equipment which can move on the bridge. It will speed up all rescue and retrieval efforts." People trapped in places like tea plantations have all been rescued, locals and rescue officials said. Authorities said they were not expecting any more survivors and were looking to retrieve the bodies. There was no information on the number of tea-plantation workers staying in makeshift houses made of clay, wood and tin that were completely flattened by the landslides. Steady rain and lack of road access to affected areas have hampered rescue work over the last two days. Light rain continued on Thursday as rescue workers shifted through the debris amid the mud and sludge. Teachers at a nearly destroyed local school in Chooralmala were seen trying to retrieve relevant documents and student records. U.S. President Joe Biden and Russian President Vladimir Putin were among leaders who extended their condolences. "Our prayers are with the victims of this tragic event, and we mourn with the families who have lost loved ones. We commend the bravery of the Indian service members and first responders supporting the complex recovery effort," Biden said in a statement. The disaster was the worst in Kerala since deadly floods in 2018. Experts said the area had received heavy rain in the last two weeks that softened the soil before extremely heavy rainfall on Monday triggered the landslides. Authorities said 189 dead bodies have been recovered while 206 were still missing. The local Asianet news TV channel put the death toll at 283. Nearly 1,600 people have been rescued from hillside villages and tea and cardamom estates during the last two days, authorities said, adding that nearly 350 buildings were affected. The death toll was expected to rise further once the construction of the metal bridge was completed and authorities are able to speed up the search. "Our focus is to rescue those who were isolated and stranded," Pinarayi Vijayan, the chief minister of the state, told reporters after conducting an aerial survey of the landslides-hit areas. "Rescue operations will continue in the river to search for missing persons. Rescued people are temporarily being shifted to camps and rehabilitation work will be done at the earliest." Opposition leader Rahul Gandhi, who won a seat in Wayanad in the recent general election, but resigned as he was also elected in his family bastion in the north, also visited the affected areas on Thursday. Sign up here. https://www.reuters.com/world/india/indian-soldiers-building-metal-bridge-marooned-area-kerala-landslides-2024-08-01/

2024-08-01 12:08

Aug 1 (Reuters) - HF Sinclair (DINO.N) , opens new tab reported a quarterly profit on Thursday that beat analysts' estimates as it processed higher volumes of crude oil and on strength at its lubricants and midstream units, all of which offset a slump in its refining margins. The company joins rivals Phillips 66 (PSX.N) , opens new tab and Valero (VLO.N) , opens new tab in reporting lower quarterly profits from a year earlier, but beating earnings estimates on higher volumes of crude processed. HF Sinclair's refinery throughput, or the total amount of crude processed, was 676,610 barrels per day (bpd) in the second quarter ending June, compared with 598,970 bpd a year earlier. U.S. refiners ramped up processing capacity to 93.5% in the quarter, compared with 91% in the same period last year, according to the U.S. Energy Information Administration, on expectations of an uptick in demand that did not materialize. Fuel demand came under pressure during the quarter due to sluggish manufacturing activity and an increase in renewable fuel supply. While HF Sinclair's refinery gross margins fell to $11.33 per barrel from $21.99 a year earlier, its refinery utilization averaged 93.6%, compared with 81.7%. Adjusted core profit from HF Sinclair's refining segment dropped 74.5%. Sales of refined products rose to 666,250 bpd from 598,180 bpd. The company's midstream segment saw a nearly 44.5% rise in income on higher volumes, while income from its lubricants unit also increased. On an adjusted basis, Dallas-based HF Sinclair earned 78 cents per share in the second quarter, compared with analysts' estimates of 71 cents, according to LSEG data. Sign up here. https://www.reuters.com/business/energy/hf-sinclair-posts-lower-second-quarter-profit-2024-08-01/

2024-08-01 12:07

BENGALURU, Aug 1 (Reuters) - Indian tobacco-to-hotels conglomerate ITC (ITC.NS) , opens new tab missed first-quarter profit estimates on Thursday as higher expenses and competition from more affordable brands hurt. The Sunfeast biscuits maker's profit edged up to 49.17 billion rupees ($587.4 million) for the quarter but missed analysts' estimate of 51.62 billion rupees, per LSEG data. ITC, like peers Dove-soapmaker Hindustan Unilever (HLL.NS) , opens new tab and Maggi noodles-manufacturer Nestle India (NEST.NS) , opens new tab, faced stiff competition from local rivals that typically offer cheaper alternatives. There was high "competitive intensity" from local and regional manufacturers in categories such as biscuits, snacks, noodles, education and stationery products, ITC said in an investor presentation. Meanwhile, total expenses rose nearly 11%. India's retail inflation rate hovered around 5% during April-June, mostly due to high food prices, forcing consumers in the world's most populous country to cut back wherever possible to make ends meet. For ITC, overall revenue from operations increased 7.2% to 182.20 billion rupees, mainly helped by higher sales of cigarettes. Other consumer goods makers have reported mixed results. Hindustan Unilever posted higher earnings as product price cuts led to increased demand while Nestle India reported its slowest growth in eight years as price increases drove consumers away. Shares in ITC closed marginally lower ahead of results. In the April-June quarter, the stock fell 0.8%, compared to a 5.2% gain in the Nifty consumer goods index (.NIFTFMCG) , opens new tab. ($1 = 83.7060 Indian rupees) Sign up here. https://www.reuters.com/world/india/indias-itc-misses-q1-profit-estimates-2024-08-01/