2024-06-17 12:47

Brazil, US, Argentine meat suppliers could benefit Russia also keen to boost share in China's meat market No immediate market impact expected SINGAPORE, June 17 (Reuters) - Pork suppliers from South America and the U.S. could gain market share in China if Beijing restricts imports from the European Union in response to escalating trade tensions, traders and analysts said. Russia, increasingly a close trading partner of China that started exporting pork to China in February, could also step up meat shipments. China's commerce ministry said on Monday it had opened an anti-dumping investigation into imported pork and its by-products from the EU, after the bloc imposed anti-subsidy duties on Chinese-made electric cars. Any impact on EU exports will take time to emerge. China has said the investigation could last more than a year. "Brazil, Argentina and the U.S. can export more pork and offal to China if exports from the European Union are restricted," Pan Chenjun, a senior analyst at Rabobank in Hong Kong, said. "If the anti-dumping tax is too high, than shipments from other origins such as the US, Brazil and Argentina will increase." The U.S. Meat Export Federation (USMEF) noted U.S. pork faces retaliatory duties of 25% in China in response to steel and aluminum tariffs, however. "It is unclear whether U.S. pork will still be at a tariff disadvantage compared to EU pork, as is the case today," said Joe Schuele, vice president of communications for the USMEF. Smithfield Foods, a unit of Hong Kong-listed WH Group ltd (0288.HK) New Tab, opens new tab, is familiar with the impact of Chinese tariffs on U.S. pork and would welcome relief on that front, spokesman Jim Monroe said. Anti-dumping duties could hit Europe hard as China's pork purchases from Europe include parts such as feet, ears and offal that tend to only be used for pet food rather than human consumption in Europe. Pan, however, said any impact on China's market would be limited. "We don't see much impact on the local market in terms of supplies and prices if imports are restricted from the European Union. This is because China's imports of pork and offal are just 5% of total consumption," Pan said. USMEF's Schuele said there could be further opportunities for U.S. pork variety meats in China, including feet, stomachs, heads and neckbones. LEADING CONSUMER AND PRODUCER In 2023, China imported $6 billion worth of pork, including offal, customs data showed. It is the world's leading pig producer and consumes around half the world's pork. Domestic hog prices had plummeted, but oversupply has eased this year as farmers slaughtered fewer pigs to boost the market. One Asia-based trader who deals in animal feed said Brazil, China's leading agricultural trading partner, stood to gain from any EU trade disruption. The trader, who asked not to be named because they were not authorised to speak to the press, said Brazil was very competitive in terms of pricing and would be able to easily increase market share. Russia also has potential for growth, and according to Yuri Kovalev, head of the country's National Union of Pork Producers, it wants a 10% share of China's pork imports within three to four years. As of June 2, Russia's pork shipments to China totalled 4,260 metric tons, but Sergey Dankvert, the head of Rosselkhoznadzor, Russian agricultural watchdog, said earlier this month Russia could export up to 100,000 tons of pork to China in 2024. The head of Miratorg, one of Russia's major pork suppliers, Viktor Linnik told an investment forum in St. Petersburg that the agricultural holding was ready to supply China with about 40,000 tons of pork by the end of the year. One meat trader in Shanghai, who asked not to be named, said his company was in contact with Russian pork exporters. Sign up here. https://www.reuters.com/markets/commodities/rival-pork-exporters-could-benefit-china-eu-trade-tensions-2024-06-17/

2024-06-17 11:57

BARCELONA, June 17 (Reuters) - Spanish holding firm Criteria will seek a new partner for a potential takeover bid for utility Naturgy (NTGY.MC) New Tab, opens new tab as soon as possible after it recently failed to reach an agreement with Abu Dhabi's TAQA (TAQA.AD) New Tab, opens new tab, a Criteria source said on Monday. Asked if it had to be an industrial partner from the energy sector, the source said Criteria - which owns 26.7% of Naturgy - was open to any shareholder that brings growth to Spain's largest gas company. The source added that Criteria does not like acting alone when it comes to companies it deems strategic. When Criteria last week dropped a takevoer plan for Naturgy with TAQA as partner it said it was "exploring new options" to support the Spanish energy company's transformation plan. It also reaffirmed its commitment as a long-term investor in Naturgy. Criteria, which is the investment arm of La Caixa Foundation, is looking for long-term shareholders and those that agree with its long-term strategy, the source said in a briefing with reporters. Criteria would likely be open to splitting Naturgy in different units but only if it would bring value, the source added. TAQA was in takeover talks with Naturgy's three largest shareholders - Criteria and private equity funds CVC and GIP, which each own more than 20%. Another source with knowledge of the matter said the deal was called off due to disagreements over the price and governance issues without elaborating further. With Naturgy's planned takeover, TAQA, a power and water utility founded in 2005, would also have acquired the Spanish firm's contracts with Algeria and a long-term contract to import some 3 billion cubic metres of Russian liquefied natural gas every year. Sign up here. https://www.reuters.com/business/energy/criteria-will-seek-soon-possible-new-partner-naturgy-takeover-bid-source-2024-06-17/

2024-06-17 11:52

SANTANDER/MADRID, June 17 (Reuters) - Leading EU pork exporter Spain on Monday said it was working with European Union officials to avoid damaging tariffs after Beijing said it would open an anti-dumping inquiry. China's investigation appears mainly targeted at Spain, the Netherlands, France and Denmark, the three biggest EU exporters of pork to China. Its announcement follows the European Commission's announcement last week that it would impose anti-subsidy duties on imported Chinese cars from July. Economy Minister Carlos Cuerpo said Spain and the EU were working to find a balance that avoided a trade war while protecting its products from unfair trade practices. "Just as there can't be a trade war, there can't be a subsidy race either," Cuerpo, who is also Spain's trade minister, told a conference in Santander. "We are already working through the European Union to find solutions that will provide a way forward without damaging the sector." Agriculture Minister Luis Planas said he did not expect immediate measures after China said the investigation, begun on Monday, could last more than a year. "I hope and expect that there will be room for understanding, for negotiation, and to avoid the imposition of tariffs on agricultural and food products," Planas told reporters in Madrid. The investigation announced by China's commerce ministry on Monday will focus on pork for human consumption, such as fresh, cold and frozen whole cuts, as well as pig intestines, bladders and stomachs. Spain exported 560,488 tons of pork products worth 1.2 billion euros ($1.29 billion) to China in 2023, representing 20.3% of its total pork exports by volume and 13.7% by value, according to Interporc, Spain's pork producers' association. Spain accounts for 21% of China's total pork imports, according to Interporc. ($1 = 0.9337 euros) Sign up here. https://www.reuters.com/markets/commodities/spain-calls-negotiations-after-china-announces-eu-pork-anti-dumping-probe-2024-06-17/

2024-06-17 11:43

June 17 (Reuters) - LandBridge, a landowner in the oil-rich Permian Basin, said on Monday it was looking to raise up to $319 million in its initial public offering (IPO) in the United States. The company, backed by private equity firm Five Point Energy, owns about 220,000 surface acres in the basin that it can lease to oil and natural gas producers. It also sells resources extracted from its land. LandBridge says this business model, which largely depends on fee-based contracts, reduces its susceptibility to volatility in commodity prices at a time when geopolitical and other risks have cast a shadow on oil demand. Last week, the U.S. Energy Information Administration slightly upgraded its oil demand growth estimate for 2024, but a flurry of weak economic data from China kept optimism in check on Monday. LandBridge said it plans to sell 14.5 million shares priced between $19 and $22 each. It will list on the New York Stock Exchange under the symbol "LB." Public markets in the U.S. have seen an influx of IPOs in the last few months after a nearly two-year dry spell, as expectations of a soft landing for the economy encourage companies to list their shares. Goldman Sachs and Barclays are the lead underwriters for the IPO. Sign up here. https://www.reuters.com/markets/commodities/landbridge-aims-raise-up-319-mln-us-ipo-2024-06-17/

2024-06-17 11:32

BENGALURU, June 17 (Reuters) - The Swiss National Bank (SNB) will cut its key policy rate by 25 basis points on June 20 for a second straight meeting, according to two-thirds of economists polled by Reuters, a slim majority of whom said the central bank would trim it again in September. Although that was in line with market pricing of a nearly 75% chance of a June rate cut, the policy decision on Thursday could be a close call given a recent rebound in economic growth and a break in the trend of gently falling inflation. Despite inflation remaining within the central bank's target of 0-2% since June 2023, SNB Chairman Thomas Jordan recently said the central bank saw a "small upward risk" to its inflation forecast, which if realised would imply the "monetary policy stance would be more accommodative than intended". Still, a two-thirds majority of economists in the June 12-17 Reuters poll, 22 of 33, predicted the central bank would reduce its main interest rate on Thursday by 25 basis points to 1.25%. That would follow a surprise cut in March, which made the SNB the first major central bank to dial back tighter monetary policy. The rate is already the lowest among G10 central banks other than the Bank of Japan. "We expect the policy rate to be cut by 25bp to 1.25% at this upcoming meeting ... it is our base case because inflation is within the target range, it is expected to remain there and the SNB thinks policy is currently restrictive," said George Moran, European economist at Nomura. "However, it is a very finely balanced decision." Inflation will average 1.4% this year, which it was last reported in May, the Reuters poll also found, before easing to 1.2% in 2025, largely in line with SNB projections. Meanwhile, the recent strengthening in the franc , which has risen around 4% against the euro since late May, could provide additional support for any move to ease policy. However, the Swiss currency is still down about 2.8% for the year. Expectations the U.S. Federal Reserve will reduce rates twice, or even just once, this year, and that the European Central Bank (ECB) - which cut rates on June 6 - will go for fewer rate cuts than previously thought, pose downside risks to the franc's upward march. One-third of economists polled, 11 of 33, expected the SNB to hold rates on Thursday. "The Fed is unlikely to lower its policy rate before September, and the ECB has remained vague about its easing process following the lowering of its policy rates," said Alessandro Bee, senior economist at UBS. "Our conviction for an SNB June rate cut has therefore dropped, and we expect the central bank to maintain its policy rate at 1.50% on June 20." Also, high services inflation and rental costs could keep price pressures elevated, but they are unlikely to breach the SNB's target anytime soon. A slim 52% majority of economists, 17 of 33, expected the SNB to reduce rates to 1.00% in September. Poll medians showed the September cut would be the last in the current cycle and the policy rate would stay at 1.00% until at least 2026. Referring to Jordan's recent comments, UniCredit economists said they saw a terminal rate - an implied neutral policy level - of 1.00%, "under the assumption of a longer-term inflation rate of also about 1%". "In other words, the potential for further easing of monetary policy seems limited compared to the ECB," they added. (For other stories from the Reuters global economic poll:) Sign up here. https://www.reuters.com/markets/rates-bonds/snb-cut-rates-25-bps-125-june-20-possibly-again-sept-2024-06-17/

2024-06-17 11:28

NEW DELHI, June 17 (Reuters) - A power outage lasting several minutes at India's busiest airport in Delhi caused minor disruptions to some services within the terminal on Monday, airport management said. "Voltage imbalance from the Delhi Transco Limited (DTL) grid briefly impacted all IGI terminals, affecting baggage acceptance and e-gates," a spokesperson for Delhi International Airport said. The Indira Gandhi International (IGI) Airport in the capital New Delhi, owned and run by GMR Airports (GMRA.NS) New Tab, opens new tab, has three terminals for commercial and cargo flights. The power back-up system was started within a few minutes and the main power supply was restored shortly after, the spokesperson added. Air conditioners in the terminal stopped working during the outage which lasted about 7 minutes, but were restored soon after, a source familiar with the matter told Reuters. Temperatures in the capital have soared to record breaking levels in recent weeks, with water shortages and frequent power cuts adding to residents' woes. One airline source, who did not want to be named, said the power outage could cause check-in and boarding delays. June is typically a busy month for the airline industry in India as schools are shut for the summer break. Some social media users posted images of passengers standing in long queues at check-in counters as airline officials waited for computers to power up again. India is one of the world's fastest-growing aviation markets with domestic air travel expected to double to 300 million passengers from a record 152 million in 2023, according to government data. Sign up here. https://www.reuters.com/world/india/indias-delhi-airport-resumes-operations-after-power-cut-flights-not-affected-say-2024-06-17/