2024-05-21 16:47

NEW YORK, May 21 (Reuters) - (This May 21 story has been corrected to change the company description to 'multi-dealer FX platform' from 'currency management firm,' in paragraph 2) Companies are increasingly looking to lock in foreign exchange rates for longer, as they seek to protect profits from the potential fallout from currency gyrations that could follow elections expected around the globe this year. The largest companies are the most risk averse, implementing the longest hedge windows - 7.5 months on average - according to research based on a quarterly survey of 250 senior finance decisionmakers at UK and U.S. companies conducted by multi-dealer FX platform MillTechFX last month. Hedge windows refer to the time frames used by companies when buying foreign exchange hedges, and firms looking to lengthen this duration typically will favor longer dated options or forwards over shorter-dated ones. Nearly half of all respondents said they plan on increasing hedging length due to upcoming elections, the survey showed. "In a year where more than half of the world’s population across 80 countries will head to the polls, it’s no surprise to see geopolitics are heavily influencing corporates’ FX hedging decisions," Eric Huttman, chief executive of MillTechFX said in the research note. Geopolitics and central bank policy were the two biggest influences on companies' currency hedging in the first quarter, the survey also showed. The U.S. dollar has gained 3.2% this year against a basket of major currencies helped by the relative strength of the U.S. economy. Sign up here. https://www.reuters.com/markets/currencies/companies-look-lengthen-currency-hedges-elections-loom-survey-shows-2024-05-21/

2024-05-21 14:58

ABUJA, May 21 (Reuters) - Nigeria's central bank delivered another big interest rate hike on Tuesday, responding to a continued rise in inflation which hit a 28-year high in April. Central Bank of Nigeria Governor Olayemi Cardoso said the bank's Monetary Policy Committee (MPC) was faced with a decision to either raise or hold rates while it observed the impact of previous hikes, but opted for an increase in the interests of price stability. The Monetary Policy Rate was increased by 150 basis points (bps) to 26.25% (NGCBIR=ECI) New Tab, opens new tab, the third rate increase this year after hikes of 200 bps in March and 400 bps in February. "The balance of risks suggests further tightening of policy to build on the benefits from previous hikes," Cardoso told a news conference. Economists had widely predicted another hike given soaring inflation and the highly volatile naira currency . "A bold policy move was required to bring Nigeria's real rates closer to positive territory and halt the naira's decline," said Danny Greeff, an analyst at ETM Analytics. Inflation reached 33.69% year-on-year in April (NGCPIY=ECI) New Tab, opens new tab - a level not seen since mid-1996 - spurred by the government slashing petrol and electricity subsidies and twice devaluing the naira since President Bola Tinubu took over last year. The central bank has more work to do to rein in price pressures and there could be more rate hikes to come, analysts said. The International Monetary Fund has welcomed the central bank's previous hikes and called for decisions to be data-driven. Cardoso has pledged to curb inflation, support the naira and depart from the unorthodox policies of his predecessor who blurred the lines between monetary and fiscal policy with direct interventions to try to lift economic growth. The government is also struggling to lift output from its crucial oil sector and keep a lid on rampant insecurity that has left swathes of the country outside its control. The central bank's next rate-setting meeting is scheduled for July. Sign up here. https://www.reuters.com/world/africa/nigerias-central-bank-raises-benchmark-rate-2625-2024-05-21/

2024-05-21 12:47

Investor climate resolution gets 18.6% shareholder support Shell board's own climate resolution gets 78.2% support Protesters disrupt annual shareholder meeting LONDON, May 21 (Reuters) - Shell (SHEL.L) New Tab, opens new tab shareholders on Tuesday rejected a resolution filed by a group of investors urging the energy company to set tougher climate targets. The vote came after Shell CEO Wael Sawan weakened a 2030 carbon reduction target in March, citing expectations for strong gas demand and uncertainty in the energy transition, while focusing on more profitable operations, mainly in oil and gas. The investor resolution received 18.6% support from shareholders in preliminary results. A separate resolution from Shell's board on its climate strategy won 78.2% support. "Shell believes continued investment in oil and gas will be needed," Chairman Andrew Mackenzie told the company's annual general meeting (AGM). Mackenzie added that Shell believed the world would need more liquefied natural gas (LNG) through the energy transition and that "oil will play a vital role for a long way to come". The meeting was disrupted several times by climate protesters chanting "Shell kills". Climate protesters also held a demonstration outside the meeting. The resolution was filed by activist shareholder Follow This and backed by a group of 27 investors that collectively have around $4 trillion under management. It urged Shell to align its medium-term carbon emissions reduction targets with the Paris Climate Agreement, including emissions from fuels burnt by consumers. These end-user emissions, referred to as Scope 3, account for about 95% of the company's greenhouse gas pollution. The vote backers included Amundi, Scottish Widows, Rathbones Group and Edmond de Rothschild Asset Management. Shell's board had urged investors to oppose the resolution saying it "is against both good governance and shareholders' interests, and also has negative consequences for our customers". Last year, a similar climate resolution filed by Follow This won 20.2% support, when the AGM was repeatedly disrupted by protesters who also tried to storm the stage where the board was sitting. Oil majors have come under increased investor pressure to focus on their most profitable businesses after reporting bumper profits in recent years while returns from renewables slumped. Scientists say the world must cut greenhouse gas emissions by around 43% by 2030 from 2019 levels to stand any chance of meeting the 2015 Paris Agreement goal of keeping warming well below 2 degrees Celsius (3.6 degrees Fahrenheit) above pre-industrial levels. Sign up here. https://www.reuters.com/sustainability/climate-energy/shell-shareholders-reject-investor-climate-resolution-2024-05-21/

2024-05-21 12:46

May 21 (Reuters) - The U.S. securities regulator on Monday asked Nasdaq, CBOE and NYSE to fine-tune their applications to list spot ether exchange-traded-funds (ETFs), signaling the agency may be poised to approve the filings, multiple people familiar with the process told Reuters. Securities and Exchange Commission officials asked the exchanges to submit their revisions by the end of Tuesday, two of those sources said. While the exchange applications are the first step in a two-step approval process, a green light from the SEC would mark a major, and surprising, win for the cryptocurrency industry, which had been expecting a thumbs-down. The price of ether jumped as much as 18% Monday and was up another 8.6% at $3,802 late Tuesday morning before retreating slightly to hover at around $3,747 Tuesday afternoon. The SEC must decide whether to approve applications filed by CBOE to list ether ETFs provided by VanEck and ARK Investments/21Shares by the end of this week. The SEC had not engaged with exchanges and issuers on the filing details, leading industry executives to expect it would reject them. But in a surprise move, SEC officials on Monday asked Nasdaq, CBOE and NYSE to quickly make updates and changes to the filings, requests which usually precede approval, said the people familiar with the process, who declined to be identified discussing private regulatory matters. Spokespeople for the SEC, CBOE, Nasdaq, NYSE and 21Shares, which teamed up with ARK Investments on the filing, declined to comment. Spokespeople for ARK did not return a request for comment. The exchange applications seek SEC approval for a rule change required to list new products, but the issuers still need the agency to approve the ETF registration statements before they can start trading. Unlike the exchange filings, there is no set time frame in which the SEC has to decide on the registration filings, meaning it could still take several months for ether ETFs to begin trading. "This could take a minimum of 60 days," said Steven McClurg, head of U.S. asset management for CoinShares, which launched a spot bitcoin ETF in January but has not filed for an ether ETF. "These applications contain hundreds of pages of disclosures," he said. "I can’t imagine that they could review this in time for a launch by May." The first issuers filed for the spot ether products after the SEC approved ETFs tied to ether futures in October. But market participants had expected the SEC to reject the ether ETF applications, citing discouraging and one-sided meetings with the regulator. The SEC, which is led by crypto skeptic Gary Gensler, rejected spot bitcoin ETFs for more than a decade over market manipulation worries but was forced to approve them after Grayscale Investments won a court challenge last year. Those products have attracted buying interest from a wide array of hedge funds, wealth advisers and retail investors. Within the first week, two of the new bitcoin funds had attracted more than $1 billion in assets. Sign up here. https://www.reuters.com/markets/us/us-sec-asks-exchanges-fine-tune-ether-etf-filings-positive-sign-approval-say-2024-05-21/

2024-05-21 12:43

LONDON, May 21 (Reuters) - Britain said it was doubling down on its net zero emissions target after ruling out using an accounting loophole that would have seen it use surplus emission cuts to meet future climate goals. The move comes after Britain’s independent climate advisers, the Climate Change Committee, warned in February against using the surplus saying it could weaken efforts to curb emissions. Britain sets five-yearly carbon budgets to help it progress towards net zero emissions by 2050. For the third budget, 2018-2022, it outperformed the required emissions cut by 15% and could have rolled over the surplus cut to help meet the 2023-2027 fourth budget. “By deciding not to carry forward our over-performance from the third carbon budget, we are doubling down on our commitment to reach net zero, and we’re already halfway there,” Energy Security and Net Zero Minister Justin Tomlinson said in a statement. Britain's greenhouse gas emissions fell by 5.4% in 2023 and were almost 53% lower than 1990 levels. Sign up here. https://www.reuters.com/world/uk/britain-doubles-down-climate-target-rules-out-accounting-loophole-2024-05-21/

2024-05-21 12:32

TOKYO, May 21 (Reuters) - Saudi Arabian Crown Prince Mohammed bin Salman promised stable oil supplies to Japan in a video conference with Prime Minister Fumio Kishida on Tuesday, the Japanese Foreign Ministry said in a media release. The crown prince told Kishida that "Saudi Arabia remains committed to the stable supply of crude oil to Japan and that Saudi Arabia would like to cooperate with Japan in other areas including the field of clean energy," it said. On Monday, the crown prince suddenly postponed his visit to Japan, which was scheduled for May 20-23, due to a health issue for King Salman. The crown prince had been scheduled to meet with Kishida and Japanese Emperor Naruhito. Kishida told the crown prince that he expected the kingdom to continue playing a leading role in stabilising the global oil market, including through further production increases, the release said. Kishida also said he would like to work with Saudi Arabia towards establishing a global supply chain for clean energy such as hydrogen and ammonia, according to the release. Earlier on Tuesday, Japan and Saudi Arabia held a bilateral business forum in Tokyo to discuss further collaboration in energy and other industries, despite the crown prince's absence. During the Saudi-Japan Vision 2030 Business Forum, Japanese industry minister Ken Saito met Saudi delegates including energy minister Prince Abdulaziz bin Salman, investment minister Khalid Al-Falih and Saudi companies. "Saudi Arabia is Japan's biggest supplier of crude oil and one of the most important partners in terms of energy security," Saito told the forum. In an effort to deepen their ties, over 30 memorandums of understanding (MOUs) were signed by the two sides on Tuesday ranging from energy to the financial sector and manufacturing. Saudi Power Procurement Company said it had signed two power purchase agreements with a consortium led by Japanese trading house Marubeni (8002.T) New Tab, opens new tab to procure power from AlGhat wind project (600 megawatts) and Wa’ad Alshamal wind project (500 megawatts). Sign up here. https://www.reuters.com/markets/japan-saudi-arabia-discuss-energy-industry-collaborations-forum-2024-05-21/