2024-05-31 06:01

May 31 (Reuters) - French automaker Renault (RENA.PA) New Tab, opens new tab and Chinese partner Geely (0175.HK) New Tab, opens new tab announced a highly anticipated joint venture on Friday that will develop combustion and hybrid engines, hoping to improve the competitiveness of their legacy auto business. The venture is aimed at developing more efficient gasoline engines and hybrid systems, as rival automakers ramp up investment in low-emission powertrains in response to slowing electric vehicle sales. Toyota Motor (7203.T) New Tab, opens new tab showcased on Tuesday next-generation engines that can be used in hybrids and other lower emission vehicles, and China' BYD (002594.SZ) New Tab, opens new tab also announced new hybrid technology with lower fuel consumption this week. "A combination of various powertrain technologies is necessary ... to achieve a successful decarbonization in a world where more than half of vehicles produced are expected to still rely on combustion engines by 2040," Renault and Geely said in a joint statement. The 50-50 joint venture is a core element of Renault's strategy to stay in the race against larger competitors by signing multiple partnerships to reduce costs and access new markets. By carving out its internal combustion engine business, Renault plans to focus on EVs, part of the French firm's broad restructuring that also involves overhauling its decades-old alliance with Nissan Motor (7201.T) New Tab, opens new tab. For Geely, the deal extends its pattern of building partnerships to expand beyond China. Geely previously announced a hybrid gasoline engine development deal with Mercedes-Benz (MBGn.DE) New Tab, opens new tab, and holds a stake in the German automaker. The venture, dubbed HORSE Powertrain, will be headquartered in London and will supply both the groups' brands as well as third-party manufacturers. The business expects to reach about 15 billion euros ($16.2 billion) in annual revenue and production of about five million powertrain units a year, the automakers said. Matias Giannini would be the venture's CEO and Geely Holding CEO Daniel Li would be chairman of the board. Giannini was a former global sales executive for Vitesco Technologies, a powertrain business spun off from automotive supplier Continental (CONG.DE) New Tab, opens new tab. The venture has been expected since the beginning of the year but regulatory approval in China was delayed at least three times, sources have told Reuters. ($1 = 0.9246 euros) Sign up here. https://www.reuters.com/business/autos-transportation/renault-geely-create-joint-venture-hybrid-combustion-engines-2024-05-31/

2024-05-31 06:00

NEW DELHI, May 31 (Reuters) - Soaring temperatures in India's capital have proven to be too much for some courts and are putting to the test a law in place since 1961 that requires lawyers to wear heavy black robes and coats. At least three High Courts have permitted lawyers to discard the robes and coats for the summer, although the Supreme Court is being urged to make it a general rule for all lawyers in the country. Judges at one New Delhi court postponed a case this week until later in the year, complaining about a lack of air conditioning and water supply. While India's Supreme Court and most High Courts have air conditioning, many lower courts and consumer forums depend on fans and have poor ventilation. New Delhi recorded temperatures of around 50 degrees Celsius (122 Fahrenheit) for the first time this week, forcing authorities to restrict water supply, shut schools and set up heatstroke units at hospitals. They have also deployed paramedics to polling stations for the final day of India's massive general election on Saturday in case any voters fall ill as they queue in the heat. A 40-year-old labourer died of heat stroke on Wednesday. The northwest of India has been experiencing high temperatures for several weeks. India's Meteorological Department has predicted two or three times the usual number of heat wave days in the region this month, or days defined by abnormally hot weather. For Delhi, that means sweltering temperatures that are effecting people across the city, including its legal system. At a consumer court in the southwestern district of Dwarka, which Reuters visited on Thursday, judges presided over cases against insurance companies in a courtroom fitted with two non-functioning air conditioners. Ceiling fans and open windows offered the only respite from the weather. Three of the court's judges issued a written order this week stating they had declined to hear a case due to high temperatures in the court room. They adjourned the case for the cooler month of November. "There is neither air conditioner nor cooler in the court room ... There is too much heat. There is no water supply even to go to the washroom to ease ourselves ... In these circumstances, arguments cannot be heard," the order said. In 2021, India's then chief justice said courts "still operate from dilapidated structures without proper facilities", which was "severely detrimental" for both litigants and lawyers. A Delhi-based lawyer, Shailendra Mani Tripathi, has taken the matter to the Supreme Court, asking justices to change the decades old dresscode. Black coats absorb more heat and endanger health, Tripathi says in his filing, which the justices have yet to hear. Forcing lawyers to wear them "is neither fair nor reasonable," he says. Sign up here. https://www.reuters.com/world/india/too-much-heat-hits-delhi-courts-judges-asked-let-lawyers-ditch-robes-2024-05-31/

2024-05-31 05:46

MUMBAI, May 31 (Reuters) - The Indian rupee rose on Friday amid likely inflows and a recovery in the indexes ahead of the release of the exit polls of the national elections. The rupee was at 83.2750 to the U.S. dollar at 10:42 a.m. IST, up from 83.3175 in the previous session. India's Nifty 50 Index advanced 0.4%, headed for the first positive day in six. India national election exit polls are due on Saturday. "The exit polls will lend a bit of volatility on Monday," a foreign exchange salesperson at a bank said. "Undoubtedly, the key will be what the polls are predicting on how many seats the BJP (ruling Bharatiya Janata Party) will win." A number of polls will be out over the weekend and should "at least provide a feel on the outcome," he said. Whatever the exit polls predict, interbank will probably wait till Tuesday (when the election results are out) for "larger bets", a currency trader at a bank said. "Today, the initial downside momentum has been probably fuelled by inflows," he said, referring to the inflows from MSCI's May review. Meanwhile, Asian currencies saw a bit of relief amid a dip in U.S. Treasury yields before the U.S. core PCE data, which is the Federal Reserve's preferred gauge for inflation. The data came as investors dialled back their expectations on rate cuts the U.S. Federal Reserve is likely to deliver this year. A rate cut at the July meeting is nearly priced out and what happens at the September meeting is a toss-up. Sign up here. https://www.reuters.com/markets/currencies/rupee-inches-up-alongside-equities-eyes-exit-polls-2024-05-31/

2024-05-31 05:35

BHUBANESWAR, India, May 31 (Reuters) - At least 24 people died of suspected heatstroke in India's eastern states of Bihar and Odisha on Thursday, and the heatwave in the region is expected to continue until Saturday, authorities said. India has been experiencing a blisteringly hot summer and a part of capital Delhi recorded the country's highest ever temperature at 52.9 degrees Celsius (127.22°F) this week, though that may be revised with the weather department checking the sensors of the weather station that registered the reading. While temperatures in northwestern and central India are expected to fall in the coming days, the prevailing heatwave over east India is likely to continue for two days, said the India Meteorological Department (IMD), which declares a heatwave when the temperature is 4.5 C to 6.4 C higher than normal. A total of 14 people died in Bihar on Thursday, officials said, including 10 people involved in organising the seven-phase national elections that are currently underway. Parts of Bihar are voting in the final round of polling on Saturday. The deaths of 10 people were also reported in the government hospital in Odisha's Rourkela region on the same day, authorities told Reuters, prompting the Odisha government to advise against outdoor activities between 11 a.m. and 3 p.m. when temperatures peak. Three people died of suspected heatstroke in Jharkhand state, neighbouring Bihar, local media reported. In Delhi, where high temperatures have been causing birds and wild monkeys to faint or fall sick, the city zoo is relying on pools and sprinklers to bring relief to its 1,200 occupants. "We have shifted to a summer management diet, which includes a more liquid diet as well as all the seasonal fruits and vegetables which contain more water," Sanjeet Kumar, director of the zoo, told news agency ANI. Delhi, where the temperature was 45.4 C on Friday afternoon, recorded its first heat-related death this week and is facing an acute water shortage. Billions of people across Asia have been grappling with soaring temperatures- a trend scientists say has been worsened by human-driven climate change. India's neighbour Pakistan has also seen a spike in forest fires as temperatures soar, going as high as 52.2 C last week. India is the world's third-biggest greenhouse gas emitter but has set a target of becoming a net-zero emitter by 2070. While heat is affecting some of the country, the northeastern states of Manipur and Assam have been battered by heavy rainfall after Cyclone Remal, with several areas inundated on Friday. Monsoon rains also hit the coast of the country's southernmost Kerala state on Thursday, two days earlier than expected. Sign up here. https://www.reuters.com/world/india/least-15-dead-eastern-india-over-24-hours-temperatures-soar-2024-05-31/

2024-05-31 05:34

NEW YORK/LONDON, May 31 (Reuters) - MSCI's global equities index staged an afternoon rebound on Friday as investors repositioned for month-end, while the dollar fell with Treasury yields as data showed a modest rise in U.S. inflation in April. After spending most of the session in the red, the MSCI All Country World Price Index (.MIWD00000PUS) New Tab, opens new tab turned positive ahead of a rebalance New Tab, opens new tab of the index. When Wall Street trading ended, the global index was up 0.57% at 785.54 after falling as low as 776.86 earlier. "When you get an upside reversal it's always a good sign if you're bullish," said Joe Saluzzi, head of Equity Market Structure Research and co-head of equity trading at Themis Trading. He cited month-end portfolio adjustments for the late session buying. Before the market opened on Friday, the U.S. Commerce Department said the personal consumption expenditures (PCE) price index, widely seen as the Federal Reserve's favoured inflation indicator, increased 0.3% last month, in line with expectations and the March increase, while core PCE rose 0.2%, compared with 0.3% in March. While some strategists said they were relieved inflation wasn't hotter than expected, Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut said the data didn't change much in terms of interest-rate expectations. "The core PCE this morning didn't really do anything ... It was just a status quo type of report so there is no indication that the Federal Reserve is going to be on hold longer, or going to cut rates sooner." Separately the Chicago Purchasing Managers Index (PMI), which monitors the health of manufacturing in the Chicago region, fell to 35.4 from 37.9 last month and was well below economist expectations of 41. For the week, the MSCI index was showing its second consecutive decline but a monthly gain. On Wall Street, the Dow Jones Industrial Average (.DJI) New Tab, opens new tab rose 574.84 points, or 1.51%, to 38,686.32, the S&P 500 (.SPX) New Tab, opens new tab gained 42.03 points, or 0.80%, to 5,277.51 and the Nasdaq Composite (.IXIC) New Tab, opens new tab lost 2.06 points, or 0.01%, to 16,735.02. Earlier, Europe's STOXX 600 (.STOXX) New Tab, opens new tab index closed up 0.3%. While the index advanced 2.6% for the month it fell 0.5% for the week in its second consecutive weekly decline. Data showed euro zone inflation rose more than expected in May, though analysts said it was unlikely to stop the European Central Bank from lowering borrowing costs next Thursday but may cement the case for a pause in July. In currencies, the dollar index , which measures the greenback against a basket of currencies including the yen and the euro, fell 0.15% to 104.61 and was showing its first monthly decline in 2024 after the data. The euro was up 0.16% at $1.0849 but against the Japanese yen , the dollar strengthened 0.27% to 157.24. In Treasuries, yields fell after the signs of inflation stabilization in April, suggesting to some that the potential for the Fed to cut rates later this year remained intact. The yield on benchmark U.S. 10-year notes fell 5.1 basis points to 4.503%, from 4.554% late on Thursday while the 30-year bond yield fell 3.4 basis points to 4.6511% from 4.685%. The 2-year note yield, which typically moves in step with interest rate expectations, fell 5.2 basis points to 4.8768%, from 4.929% late on Thursday. On the energy front, oil prices fell as traders focused on Sunday's OPEC+ meeting, which is expected to determine the fate of the producer group's output cuts. U.S. crude settled down 1.18% at $76.99 a barrel and Brent settled at $81.62, down 0.29% on the day. Gold fell 0.68% to $2,326.97 an ounce on the day but was tracking for a fourth straight monthly gain. Sign up here. https://www.reuters.com/markets/global-markets-wrapup-1-2024-05-31/

2024-05-31 05:14

A look at the day ahead in European and global markets from Ankur Banerjee The time for waiting is almost over as inflation reports from Europe and the U.S. headline the day's agenda, with any kind of surprise likely to sway markets as investors weigh the shifting expectations over global rates. First up will be the euro zone inflation reading, which is expected to come in at 2.5% for May after staying stable in the last couple of months at 2.4%, while core inflation is expected to be steady at 2.7%, according to a Reuters poll. Investors will be parsing through the data to gauge the trajectory the European Central Bank is likely to take on rates. While a rate cut in June is all but certain, the focus is squarely on what comes after that. And so, investors are likely to be extremely sensitive to even a small beat or a miss. Markets are pricing in 60 bps of cuts from the ECB this year but a lot will depend on the inflation and wage growth readings over the coming months. Futures indicate European bourses are set for a lacklustre opening, with the pan-European STOXX 600 index (.STOXX) New Tab, opens new tab touching a more than three-week low on Thursday but on course for a 2% gain in the month. A downward revision to U.S. GDP on Thursday stoked expectations that the Federal Reserve has room to cut rates this year, although investors for a change took the bad news (of weaker growth) as bad news, taking U.S. stocks, the dollar and Treasury yields lower. Markets are pricing in 35 bps of cuts from the Fed this year, with a 50% chance of a rate cut in September. The ever-shifting expectations around U.S. rates has taken a toll on the dollar, which is set for a first monthly loss this year against the euro, Sterling, Aussie, kiwi and even the yen, although the yen's miniscule gain is a result of the suspected intervention earlier this month. In Asian hours, equities broadly gained, while the dollar regrouped. China stocks rose even as the data showed the nation's manufacturing activity unexpectedly fell in May, according to an official factory survey. Meanwhile, markets so far have shrugged off the Donald Trump verdict after he became the first U.S. president to be convicted of a crime on Thursday when a New York jury found him guilty of falsifying documents to cover up a payment to silence a porn star ahead of the 2016 election. Shares of The Truth Social parent Trump Media & Technology Group (DJT.O) New Tab, opens new tab, which is majority owned by Trump, dropped 6.5% late on Thursday after the verdict. Key developments that could influence markets on Friday: Economic events: May inflation report for euro zone and France, April retail sales data for Germany (This story has been refiled to correct grammar of the word 'headline' in paragraph 2 and spelling of the word 'Reserve' in paragraph 8) Sign up here. https://www.reuters.com/markets/europe/global-markets-view-europe-2024-05-31/