2024-07-25 11:24

MUMBAI, July 25 (Reuters) - India's silver and platinum imports from the UAE, previously benefiting from concessionary duties under a trade agreement, have ceased as New Delhi's move to reduce import taxes eliminated the duty arbitrage that bullion dealers were exploiting, trade and government officials told Reuters. The world's second-biggest bullion consumer slashed import duties on gold and silver on Tuesday to 6% from 15%. After the reduction, there is no incentive to bring silver or platinum into India under the Comprehensive Economic Partnership Agreement (CEPA) signed between India and the UAE, said Prithviraj Kothari, president of the India Bullion and Jewellers Association (IBJA). "Now that regular customs duty for silver is lower than the tax under the CEPA, nobody's importing silver anymore." Bullion dealers primarily imported silver from the UAE under the CEPA, as they only needed to pay an 8% import duty compared to the regular 15%. This helped the UAE corner nearly half of India's silver imports, with its shipments surging to 1,998 metric tons in the first five months of 2024 from just 133 tons during the same period a year ago. However, with the regular duty now reduced to 6%, imports via CEPA have become unfeasible, dealers said. In the past two days, bullion dealers have not approached customs to clear silver and platinum shipments under CEPA, said a government official. The imports of platinum have also stopped because of the duty cut, said Nitin Kedia, national general secretary at the All India Jewellers and Goldsmith Federation. India's four-week platinum imports from mid June eclipsed 2023's total as bullion dealers exploited a loophole by registering alloys containing around 90% gold as platinum to avoid higher duties, sources told Reuters. Around six tons of silver and two tons of platinum alloy have been stranded due to the change in the duty structure, and importers are now facing losses because of a sharp drop in global prices, said a Mumbai-based bullion dealer. "Importers must now either export silver grains back to the UAE or sell them at a discount in the Indian market," the dealer said. Sign up here. https://www.reuters.com/markets/commodities/indias-duty-cut-halts-concessionary-silver-platinum-imports-uae-2024-07-25/

2024-07-25 11:21

July 25 (Reuters) - Refiner Valero Energy (VLO.N) , opens new tab reported lower second-quarter profit on Thursday, but managed to beat earnings estimates as strong processing volumes offset a slump in margins. The company's total throughput volumes, or amount of crude processed, averaged 3.01 million barrels per day, compared with 2.97 million bpd a year earlier. Wall Street had expected its throughput to average 2.96 million bpd, according to LSEG data. "We see continued strength in our U.S. wholesale system with sales exceeding one million barrels per day in the second quarter," CEO Lane Riggs said. Refiners had ramped up their processing capacity to 93.5% in the second quarter, compared with 91% in the prior-year period, on hopes of an uptick in demand. However, the demand did not fully materialize, hurting margins, according to the Energy Information Administration. Demand for distillate fuels, which include diesel and heating oil, took a sharp hit this year, pressured by sluggish manufacturing activity, a milder-than-expected winter and booming renewable fuel supply. Valero said its refining margins were $3.05 billion in the second quarter, nearly 28% lower than last year. "VLO earnings beat consensus slightly, less impressive than recent large beats," said TD Cowen analyst Jason Gabelman in a note. Refining missed consensus, with strength in North Atlantic operations offset by weaker West Coast results, he added. Energy majors BP (BP.L) , opens new tab and Exxon Mobil (XOM.N) , opens new tab had earlier said weak fuel prices would have a negative impact on their results in the reported quarter. The San Antonio, Texas-based refiner reported a net income of $2.71 per share, lower than last year's $5.40 per share. It beat an average profit estimate of $2.60, according to LSEG data. Production volumes in the company's ethanol segment rose by 31,000 gallons per day, to 4.5 million gallons a day, compared to last year. Sign up here. https://www.reuters.com/business/energy/valero-energy-reports-lower-quarterly-profit-weak-margins-2024-07-25/

2024-07-25 10:57

LONDON, July 25 (Reuters) - A Coinbase business in Britain has been fined for breaching a regulatory agreement to improve its defences against financial crime, in the first sanction of its kind in the UK cryptoassets sector. The Financial Conduct Authority (FCA) said on Thursday that CB Payments Limited (CBPL), a gateway for customers to trade cryptoassets within the global Coinbase Group, voluntarily agreed in October 2020 to make improvements to its financial crime controls after a visit by the watchdog. The agreement stipulated that CBPL could not accept new high-risk customers until the issues were addressed. The company, however, took on or provided e-money services to 13,416 such customers with nearly a third depositing a total of $24.9 million, the FCA said. This money was used to execute multiple cryptoasset transactions via other Coinbase entities, totalling about $226 million, the watchdog said, adding that repeated breaches , opens new tabof the voluntary agreement went undiscovered for almost two years. "CBPL's controls had significant weaknesses and the FCA told it so, which is why the requirements were needed. CBPL, however, repeatedly breached those requirements," Therese Chambers, joint executive director of enforcement at the FCA, said on Thursday. CBPL will pay a 3.5 million pound ($4.5 million) fine after qualifying for a 30% discount by agreeing to resolve the case. "We welcome regulation and are dedicated to working proactively and closely with the most sophisticated financial regulators in the world, including the FCA, to ensure we offer the most compliant, trusted and secure platform for our customers," Coinbase said on Thursday. Kate Gee, a crypto litigation lawyer at Signature Litigation, said the first fine of its kind was a warning for firms to take financial crime controls very seriously. "Firms that do not do enough to protect against financial crime and who fail to comply with operational restrictions in place will face scrutiny and enforcement action," Gee said. ($1 = 0.7762 pounds) Sign up here. https://www.reuters.com/technology/uk-watchdog-fines-coinbases-cb-payments-poor-controls-2024-07-25/

2024-07-25 10:51

July 25 (Reuters) - Dow (DOW.N) , opens new tab missed second-quarter profit estimates on Thursday, hurt by lower prices and demand in key markets including Asia and Europe, sending shares of the chemicals maker 5% down in premarket trading. Manufacturing activity in the euro zone and China weakened in the quarter, resulting in a 4% drop in local prices of Dow's products in their key markets. The company produces a vast range of chemicals and additives that are used in manufacturing a variety of end-products in the consumer, agricultural and energy sector. "The pace of the global macroeconomic recovery has been slower than expected," said Chief Executive Officer Jim Fitterling. Dow's net sales fell 4% to $10.92 billion in the reported quarter, compared with LSEG estimates of $11 billion. "While near-term demand in many markets that we serve is growing, building & construction and consumer durables are unlikely to significantly change in 2024," Fitterling said. Dow expects third-quarter sales of about $11.1 billion, higher than the second quarter, but below Wall Street estimates of $11.35 billion, according to LSEG data. Analysts at RBC Capital Markets said earlier this month that while the company was through with destocking, demand remained soft, particularly in Europe. The Midland, Michigan-based company reported operating earnings per share of 68 cents for the quarter ended June 30, compared with the average analyst estimate of 72 cents, according to LSEG data. Sign up here. https://www.reuters.com/markets/commodities/dow-misses-quarterly-profit-estimates-lower-prices-demand-2024-07-25/

2024-07-25 10:42

LONDON, July 25 (Reuters) - The pound fell slightly on Thursday but largely stayed above the fray that rocked other currencies, as investors increased their wagers on Bank of England rate cuts in 2024. Sterling was last down 0.12% at $1.2891, slipping further away from a one-year high of $1.3044 hit last week. It fell more against the euro, which was up 0.26% against the pound at 84.22 pence. Traders on Thursday increased their bets on BoE rate cuts ahead of next week's decision, pricing in derivatives markets showed. Two interest rate reductions now fully priced in by December, while next Thursday's decision remains on a knife edge. British bond yields fell, weighing on the pound. The shift was largely driven by a change in U.S. interest rate expectations after a string of cool economic data and comments from former Federal Reserve officials backing a cut. Given the size and importance of the U.S. economy and dollar, changes in Fed expectations tend to impact other developed economies. "If the BoE does cut interest rate last week it could be a bit of a set-back (for sterling)," said Jane Foley, head of FX strategy at Rabobank. "I think we are in for a little bit more volatility," she said. "But I do think sterling can continue to grind higher, particularly against the euro." Foley said political stability after Labour's landslide general election victory could help boost the pound. Sterling steered clear of the volatility seen elsewhere in markets on Thursday. Stocks tumbled after a tech-led sell-off in the U.S. on Wednesday, while the Japanese yen rallied hard as traders braced for shifts in interest rates. The dollar index , which tracks the currency against six peers, was down 0.25% at 104.12 on Thursday. Sign up here. https://www.reuters.com/markets/currencies/sterling-dips-investors-raise-bets-boe-rate-cuts-2024-07-25/

2024-07-25 10:14

MUMBAI, July 25 (Reuters) - The Indian rupee ended mildly stronger on Thursday as a rally in the Chinese yuan and likely intervention from the Reserve Bank of India supported the local currency. The rupee ended at 83.6975 against the U.S. dollar, up slightly from its close at 83.7175 in the previous session. The Indian central bank intervened in both the local spot and non-deliverable forward market to help the rupee hold above its record low, traders said. The rupee has hit all-time lows in the last three sessions but RBI interventions have ensured that the depreciation has been gradual. On Wednesday, the rupee touched an all-time low of 83.72, slipping below the previous bottom of 83.7150 hit a day earlier. Outflows of nearly $1 billion from local equities after the government raised taxes on derivatives trades and on capital gains from equity investments has pressured the rupee in recent trading sessions. The dollar-rupee pair is likely to "trade in the range of 83.55-83.75 in the near term," with a rise towards 83.80 expected to encounter strong resistance, a foreign exchange trader at a private bank said. The offshore Chinese yuan rose to its highest level since May lifted by a rise in the Japanese yen and dollar sales from major Chinese state-owned banks. The dollar index was down 0.1% at 104.2. "The current dollar’s level and the size of the positioning that got it there argues for a big move. Our forecasts look for modest dollar weakness in the year ahead," Societe Generale said in a note. Meanwhile, dollar-rupee forward premiums ticked up with the 1-year implied yield up 3 basis points at 1.78%, its highest since February. Investors now await U.S. GDP data for the second quarter and jobless claims numbers due later in the day. Sign up here. https://www.reuters.com/markets/currencies/rupee-closes-higher-aided-by-yuan-rally-forward-premiums-tick-up-2024-07-25/