2024-06-20 21:15

June 20 (Reuters) - Barrick Gold (ABX.TO) New Tab, opens new tab said in a letter to the United Nations Human Rights Council on Thursday that allegations of human rights violations at its North Mara Gold Mine were "misdirected, unfounded" and "lacked substance". The UNHRC's special procedures branch had sent a letter to the Canadian gold miner in April New Tab, opens new tab, saying it had received information about allegations of killings, assault, torture, sexual abuse and violence against women and girls, among others, committed by security forces and private security contractors at the North Mara mine in northern Tanzania. UNHRC's letter to Barrick stated that "12 deaths which allegedly occurred during/resulting from operations by security forces assigned to the mine. Of these, six have been allegedly the result of Barrick operations." North Mara Gold Mine Limited (NMGML) is the owner and operator of the North Mara Gold Mine and Barrick Gold does not have direct operations in Tanzania, the company said. Barrick owns a majority stake in NMGML since 2019. Barrick said the UNHRC working groups and special rapporteurs did not conduct site visits, nor engage with the Tanzanian authorities. "The private security provider, SGA, is unarmed. There are no lethal weapons or ammunitions held by NMGML, its employees or contractors," the company said in its letter. In 2022, Barrick had faced several lawsuits alleging violence by security forces at North Mara. UNHRC did not immediately respond to a Reuters request for a comment. Sign up here. https://www.reuters.com/sustainability/society-equity/allegations-human-rights-abuses-unfounded-barrick-gold-tells-unhrc-2024-06-20/

2024-06-20 21:07

MOSCOW, June 20 (Reuters) - A Russian court has ordered that Commerzbank (CBKG.DE) New Tab, opens new tab assets worth 94.9 million euros ($101.86 million) be awarded in damages to a company overseeing construction of a gas processing plant in northwest Russia, court documents showed. Commerzbank was one of the guarantor lenders under a contract for the construction of the gas processing plant in Ust-Luga with Germany's Linde (LIN.DE) New Tab, opens new tab. The deal was terminated due to Western sanctions. St Petersburg-based RusChemAlliance, a joint venture 50%-owned by Russian gas giant Gazprom (GAZP.MM) New Tab, opens new tab which is the operator of the project, has filed several lawsuits seeking damages from Western banks. Almost all of the assets involved had already been seized by court order. Commerzbank, in reply to a request for comment from Reuters, said it did not comment on cases before the courts or on relationships with clients. "Since the beginning of the Russian attack on Ukraine Commerzbank has significantly restricted its business activities in Russia, reduced its risks and its customer relationships and stopped its new business," a Commerzbank spokesperson said. The spokesperson said Commerzbank operated within legal and regulatory requirements and adhered to sanctions. ($1 = 0.9317 euros) Sign up here. https://www.reuters.com/business/finance/russian-court-orders-commerzbank-assets-be-awarded-pipeline-firm-2024-06-20/

2024-06-20 20:46

Markets price in 48 bps of rate cuts by year end Expectations for first BoE move in August rise Investors see boost for UK gilts from 'stable' government LONDON, June 20 (Reuters) - Traders upped bets for a Bank of England rate cut in August, helping to underpin a pre-election rally for UK stocks and government bonds even though the central bank left rates on hold at a 16-year high on Thursday. After the BoE delivered its widely expected decision it hinted that it was edging closer to cuts, prompting money markets to place a 44% probability on a move in August, up from around 32% a day earlier. They priced in a 90% chance of a September cut. Wednesday's data showing UK inflation has dropped to the BoE's 2% target have encouraged those bets. Investors now widely see rate cuts boosting the UK economy alongside a predicted landslide in the July 4 general election for the opposition Labour Party, which claims it can rebuild growth and run the country's debt-laden finances cautiously. That's a turnaround for UK markets scarred by the 2016 Brexit vote and former Conservative Prime Minister Liz Truss' under-funded 2022 mini-Budget. "Rate cuts are definitely coming and we have a stable outlook for government for the next few years," Morningstar European strategist Michael Field said. James Briggs, a portfolio manager at Janus Henderson, said he had a "relatively upbeat" stance towards UK stocks, corporate credit and government bonds, known as gilts. He said UK equity and credit valuations did not yet reflect the economy's improving prospects and that gilts would benefit because "that tail risk of unorthodox fiscal policy is off the table." RALLY ON? London's FTSE 100 share index (.FTSE) New Tab, opens new tab was steady just below record highs hit in May on Thursday. Sterling slipped 0.2% to around 84.58 percent per euro, but held near its strongest levels since 2022 . Two-year gilt yields dropped to their lowest since March after the BoE's decision, LSEG data showed. UK bonds (.MERG0L0) New Tab, opens new tab, which have outperformed U.S. and euro zone government bonds (.MEREG00) New Tab, opens new tab, (.MEREG0Q0) New Tab, opens new tab this month, rallied as the BoE said that the outlook for rate cuts was "finely balanced." Pictet Asset Management senior economist Nikolay Markov was negative on gilts because he suspected Labour, which has a long held image as a tax-and-spend party, might prioritise public spending over keeping state borrowing under control. "The public finances are not in good shape," Markov said, adding that potential moves by Labour to stimulate the economy would be inflationary. Economists polled by Reuters expect the UK economy to grow by 0.7% this year, in an upgrade to earlier forecasts that had placed Britain at the bottom of the league table for predicted growth among advanced economies in 2024. Becky Qin, multi-asset portfolio manager at Fidelity International, said she would keep a neutral stance on UK stocks until she saw further signs of sustainable economic growth. "Inflation data is also not as good as the BoE probably hoped for," she said, referencing UK services sector inflation that stayed stubbornly high at 5.7% in May. CAUTION While UK markets are rallying, there are few signs as yet that they are picking up long-term support. Tracker funds that offer low-cost exposure to UK equity indices have pulled in new money during three of the last four weeks since Prime Minister Rishi Sunak called the election, data from Lipper Global shows. Actively managed UK stock funds, which are a longer term commitment because they charge higher fees and promise superior returns over time, have suffered outflows in recent weeks in a trend that has persisted for years. Janus' Briggs said a recent spate of takeovers of UK-listed companies could prompt investors to question if they were missing out on bargain valuations. Overall, the mood among investors towards the UK was buoyant as rate cut hopes added to the pre-election buzz. Yvan Mamalet, senior market strategist at SG Kleinwort Hambros, said his firm was bullish on UK stocks and gilts, although he expected rate cuts to pressure sterling. And Newton Investment Management fixed income portfolio manager Carl Shepherd said he favoured long-term gilts. "There are idiosyncratic risks in the UK and there is that sticky services inflation, but I think (once we) get the election out of the way, there’d be hopefully a period of more stability." Sign up here. https://www.reuters.com/markets/europe/global-markets-britain-analysis-pix-2024-06-20/

2024-06-20 20:36

MEXICO CITY, June 20 (Reuters) - Mexican President-elect Claudia Sheinbaum on Thursday named six members of her incoming cabinet, including political heavyweight Marcelo Ebrard as economy minister, putting him in charge of trade negotiations and causing the peso to rally. Sheinbaum also named Juan Ramon de la Fuente, former ambassador to the United Nations, to be foreign minister. As economy minister, Ebrard will oversee the 2026 review of the United States-Mexico-Canada Agreement (USMCA) trade pact. Ebrard, a former foreign minister is widely considered a business-friendly pick who successfully managed relations with the United States during his time in office, including with the administration of former President Donald Trump. "There are no negative surprises," said Jonathan Zuloaga, economist at the Columbus consulting firm. "There's no one here who generates uncertainty about what kind of decisions they would take." Ebrard later told journalists the USMCA review was a top priority, along with the planned ratification of a trade pact with the European Union. He said the ministry had been charged with attracting more investment and taking advantage of "nearshoring," in which companies relocate their supply chains closer to their main markets. Ebrard suggested pharmaceutical companies could be important targets. He will also be tasked with developing 10 industrial parks. The Mexican peso strengthened some 0.3% against the U.S. dollar to a session high on Thursday. The peso has slid around 8% against the dollar since the June 2 election. "The market's interpretation seems to be that Sheinbaum's cabinet are officials who have extensive technical and political capabilities," analysts at CIBanco said in a note. SCIENCE AND ENVIRONMENT Current Foreign Minister Alicia Barcena, a scientist and former ambassador, will take over as environment minister in a move that supports Sheinbaum's promise to improve Mexico's environmental policy. Barcena stressed a shift toward sustainability and said that a pending challenge was water management nationwide, as Mexico faces historic droughts. Rosaura Ruiz, who headed Mexico City's education, science and technology ministry while Sheinbaum was mayor of the capital, will head a newly created federal science and technology ministry. "Mexico has a huge deficit in science and technology - we need to develop (them)," Ruiz said. Former Mexico City Attorney General Ernestina Godoy will join as judicial adviser, while the former regional head of the United Nations' Food and Agriculture Organization, Julio Berdegue, will head the agriculture ministry. Sheinbaum reiterated her support for the policy of outgoing President Andres Manuel Lopez Obrador to ban genetically modified corn for human consumption. She has previously said current Finance Minister Rogelio Ramirez de la O will stay in his post. Sheinbaum is set to name more cabinet members next Thursday. The nominations on Thursday seemed to calm market jitters that have rocked Mexico since Sheinbaum and her Morena party won the election in a landslide. Morena nabbed a supermajority to pass constitutional reforms in the lower house and came close to one in the Senate. That has increased fears that Congress could pass a controversial judicial reform proposed by Lopez Obrador, which would see judges - including on the Supreme Court - elected by popular vote. Critics fear the reform could fundamentally alter Mexico's balance of power and facilitate the political capture of the judiciary. "We're going to have more volatility, that's very clear to me," Zuloaga said. "From here until at least September (when Congress enters session)." Sign up here. https://www.reuters.com/world/americas/mexico-president-elect-names-initial-cabinet-members-2024-06-20/

2024-06-20 20:25

June 20 (Reuters) - Canada's main stock index rebounded from a near four-month low on Thursday as railroad stocks rallied and higher commodity prices lifted metal mining shares. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) New Tab, opens new tab ended up 65.45 points, or 0.3%, at 21,581.35, after it posted on Wednesday its lowest closing level since Feb. 29. "The materials sector is really driving the market higher today," said Kevin Headland, co-chief investment strategist at Manulife Investment Management. "We got a bit of a bounce back in the two rail companies as well. There is a bit of volatility recently in those two names due to the overhang of potential strike action." The materials group (.GSPTTMT) New Tab, opens new tab, which includes metal miners and fertilizer companies, rose 1.9%, clawing back some recent declines, as gold and copper prices rallied. Industrials ended 0.8% higher, with Canadian Pacific Kansas City Ltd (CP.TO) New Tab, opens new tab gaining 2.3% and Canadian National Railway Co (CNR.TO) New Tab, opens new tab up 0.9%. The Canadian trucking industry is on tenterhooks as talks between the Teamsters union, which represents more than 9,000 workers, and the country's two largest railroads drag on over a new contract. Energy (.SPTTEN) New Tab, opens new tab was also up, gaining 0.5%, as the price of oil climbed to a seven-week high. U.S. crude oil futures settled 0.7% higher at $87.17 a barrel. Shares of Empire Company Ltd (EMPa.TO) New Tab, opens new tab rose 5.4% after the food retailer reported better-than-expected quarterly earnings. Among the sectors losing ground was information technology (.SPTTTK) New Tab, opens new tab. It declined 0.6%, with Celestica Inc (CLS.TO) New Tab, opens new tab down 6.8%. The utilities group (.GSPTTUT) New Tab, opens new tab closed lower for the tenth straight day, falling 0.8%, as bond yields moved higher. Sign up here. https://www.reuters.com/markets/tsx-futures-rise-commodity-boost-us-data-focus-2024-06-20/

2024-06-20 20:24

June 20 (Reuters) - The billionaire Winklevoss twins, founders of cryptocurrency company Gemini, said on Thursday they had each donated $1 million in bitcoin to support Donald Trump, the latest crypto executives to get behind the Republican presidential candidate. Tyler and Cameron Winklevoss, whose crypto firm in February entered settlement agreements with U.S. and New York state financial regulators after accusations of wrongdoing, announced the donations in posts on social media site X. They did not specify where the donations were sent. Tyler Winklevoss posted that President Joe Biden's Democratic administration had "openly declared war on crypto" and that Trump was "pro-Bitcoin, pro-crypto, and pro-business." Trump has presented himself as a champion for crypto, including at a San Francisco fundraiser this month with tech executives during which he slammed Democrats' attempts to regulate the crypto sector. The crypto industry is increasingly trying to influence U.S. politicians as it faces heightened scrutiny from regulators, especially since bankruptcies at major crypto firms in 2022 spooked investors, exposed fraud and misconduct, and left millions of investors out of pocket. In February, the New York Department of Financial Services (NYDFS) said Gemini would return at least $1.1 billion to customers of its beleaguered lending program due to a third party’s bankruptcy and pay a fine of $37 million for unsafe and unsound practices as part of a settlement with the regulator. Gemini also settled a lawsuit from the U.S. Securities and Exchange Commission that it had engaged in alleged unsafe and unsound practices for $21 million in February, without admitting or denying wrongdoing in the agreement. The Winklevoss twins shot to fame after they sued Facebook (META.O) New Tab, opens new tab and its CEO Mark Zuckerberg, alleging he had stolen their idea for the social networking site. They agreed to a settlement in 2008 in which they received cash and Facebook stock. The Biden administration did not immediately respond to a request for comment. Sign up here. https://www.reuters.com/world/us/gemini-founders-donate-1-mln-bitcoin-trump-2024-06-20/