2024-05-08 18:29

Money markets price in two Fed rate cuts this year Market likely to wait for catalyst for additional upside- analyst May 8 (Reuters) - Gold steadied on Wednesday while investors awaited U.S. data for clues on potential interest rate cuts by the Federal Reserve, though a slight uptick in the dollar limited any upside. Spot gold was mostly flat at $2,312.61 per ounce at 1804 GMT. U.S. gold futures for June delivery settled 0.1% lower at $2,322.3 per ounce. The dollar edged up 0.1% on renewed bets of rate cuts this year. A stronger dollar makes gold less attractive for foreign currency holders. "Market is likely to wait for a catalyst for additional upside, whereas the downside does appear to be capped by the limited participation from money managers," said Daniel Ghali, commodity strategist at TD Securities. Federal Reserve Bank of Boston President Susan Collins expressed confidence that the current setting of monetary policy will slow the economy in the way she believes will be necessary to get inflation back to the Fed's 2% target. Investors are now looking to the University of Michigan's consumer sentiment reading on Friday and comments from a slew of Fed officials this week. U.S. consumer price index data is due on May 15. After recent weak U.S. jobs data, money markets are pricing in two Fed rate cuts this year and around 40 basis points of monetary easing. U.S. job growth slowed more than expected in April and the increase in annual wages fell below 4.0% for the first time in nearly three years. Lower interest rates decrease the opportunity cost of holding non-yielding bullion. Meanwhile, the European Central Bank has all but promised a rate cut on June 6 and worries that a delay in monetary policy easing by the Fed could also force it to take its time. Spot silver rose 0.32% to $27.356 per ounce. Platinum edged up 0.03% to $976.30 per ounce, and palladium dipped 1.9% to $953.13. Sign up here. https://www.reuters.com/markets/commodities/gold-edges-lower-dollar-gains-investors-await-us-data-rate-cut-clues-2024-05-08/

2024-05-08 17:42

May 8 (Reuters) - General Motors (GM.N) New Tab, opens new tab said Wednesday it will end production of its gasoline-powered Chevrolet Malibu car later this year in order to produce new electric vehicles. GM has sold more than 10 million Malibus since 1964 worldwide and will end production in November. The Detroit automaker is investing $390 million at its Kansas assembly plant to build next-generation Chevrolet Bolt EVs. GM halted production of the prior generation Bolt in December. GM has been shifting away from cars in favor of building more crossover and sport utility vehicles in recent years. The Malibu is the last remaining Chevrolet car offered in the United States besides the Corvette. GM ended production of the Chevrolet Camaro late last year. GM said separately Wednesday it will pause production of the Cadillac XT4 after January 2025 in Kansas, resulting in layoffs of production employees until production resumes in late 2025 for both the Bolt EV and XT4 on the same assembly line. Sales of the Malibu were down 12.5% in the first three months of the year but up 13% to 130,000 in 2023. Sign up here. https://www.reuters.com/business/autos-transportation/gm-end-production-chevy-malibu-it-shifts-evs-2024-05-08/

2024-05-08 17:28

ABUJA, May 8 (Reuters) - Nigerian authorities on Wednesday denied allegations from Binance's CEO of soliciting bribes, saying the claim was a "diversionary tactic" and an "act of blackmail" aimed at undermining ongoing criminal charges against the company. Binance, the world's largest crypto exchange, and two of its executives face separate trials on charges of tax evasion and laundering more than $35 million, which the company is challenging. Tigran Gambaryan, a U.S. citizen and Binance's head of financial crime compliance, remains in custody while British-Kenyan Nadeem Anjarwalla has fled the country. CEO Richard Teng in a blog post accused unidentified Nigerian officials of demanding a $150 million cryptocurrency bribe to halt the investigations. In a statement on Wednesday, Nigeria's Information Ministry spokesperson Rabiu Ibrahim said the claims "lack any iota of substance". He accused Binance of attempting to undermine the country's legal proceedings. "It is nothing but a diversionary tactic and an attempted act of blackmail by a company desperate to obfuscate the grievous criminal charges it is facing in Nigeria," Ibrahim said. "The facts of this matter remain that Binance is being investigated in Nigeria for allowing its platform to be used for money laundering, terrorism financing, and foreign exchange manipulation through illegal trading," he said. Nigerian authorities claim the bribery allegations are part of a wider campaign by Binance to discredit investigations against the company, citing similar legal troubles in the United States. Binance did not immediately comment, but in a statement on Tuesday accused Nigeria of setting a dangerous precedent after its executives were invited for talks and then detained as part of a crackdown on the crypto industry. Teng's blog is the latest in a dispute that has already seen Binance close in Nigeria. Nigeria blamed Binance for its currency problems after cryptocurrency websites emerged as platforms of choice for trading the Nigerian naira as the country grappled with chronic dollar shortages. Binance said in early March it was stopping all transactions and trading in naira. Sign up here. https://www.reuters.com/technology/nigeria-rejects-binance-ceos-bribery-claim-diversionary-tactic-2024-05-08/

2024-05-08 16:18

Sales meet expectations as Americas return to growth Order book 'building quarter over quarter' Puma increasing production of Palermo shoes Puma wins first big marathon podium spot in decades Shares jump nearly 12% May 8 (Reuters) - A return to growth in the Americas helped Puma (PUMG.DE) New Tab, opens new tab meet first-quarter sales forecasts and its order book for the rest of the year was looking "very good", the German sportswear retailer said on Wednesday, helping lift its shares nearly 12%. Revamped and newly trendy shoes from the 1970s and 80s like Puma's Palermo and Adidas' Samba have helped boost sales for sportswear brands at a time when consumers have cut back on spending and retailers are struggling with excess stocks. Puma predicted growing demand for its retro Palermo shoes. "The order book is building quarter over quarter with the second half looking very good, in particular on the Q4 side," CEO Arne Freundt said on an investor call following Puma's quarterly results. He said he felt 'very comfortable' with market expectations of 2%-3% constant currency sales growth for the second quarter. The upbeat comments helped dispel worries about weaker demand in the market following Hugo Boss' cautious outlook in April, traders said, pointing to a short squeeze. "We are only six months now in the market with the Palermo, and we see how the franchises are continuing to grow in strength month over month," Freundt told a news conference. Puma is increasing production of the Palermo shoes while being careful to avoid oversupply, Freundt said, echoing comments by Adidas' CEO last week about managing the trend. "The terrace trend is very real and is something that provides material contribution to sales," said Felix Jonathan Dennl, analyst at Metzler Capital Markets in Frankfurt. "Puma was, I would say, late and jumped on that trend later than Adidas did." Retailers, where Puma makes most of its sales, are still working through excess inventories, but the company sees further improvement in the second quarter after Puma's inventories fell by 16.8% compared with March 31 last year. Currency-adjusted sales rose 0.5% to 2.1 billion euros ($2.26 billion), in line with analysts' forecasts, as sales in the Americas grew for the first time in four quarters to 790 million euros, partly due to improvement in the key U.S. market. Puma is investing in advertising to boost its brand, and is on a drive to improve its credentials as a performance sportswear maker, particularly in running where it has worked on its shoe technology. At last month's Boston Marathon, Puma-sponsored athlete Edna Kiplagat came third, marking the brand's first podium spot at a World Marathon Major in decades. Competition is fierce in running, however, with newer brands like On Running and Hoka taking market share from the likes of Nike and Adidas. "The running category is as crowded as ever," Morningstar analyst David Swartz said, adding that Puma has a lot of work to do as it has a small market share. ($1 = 0.9310 euros) Sign up here. https://www.reuters.com/business/retail-consumer/puma-reports-slight-rise-q1-sales-2024-05-08/

2024-05-08 15:46

JOHANNESBURG, May 8 (Reuters) - South Africa's rand weakened against the dollar on Wednesday on the view that the U.S. will delay cutting interest rates, with investors on edge ahead of the upcoming elections. At 1510 GMT, the rand traded at 18.6150 per dollar , around 0.6% below its previous close. The dollar index rose about 0.1% against a basket of currencies. "The rand has remained constrained by risk-averse sentiment, with the U.S. stretching out its launch of its anticipated interest rate cut cycle having a negative effect on (emerging markets)," said Annabel Bishop, Investec's chief economist. Like most emerging market currencies, the rand often takes its cue from global drivers such U.S. monetary policy in addition to local economic data points. "The expected case rand outlook is also dependent on the outcome of SA's National Election this month," Bishop added. Polls suggest the ruling African National Congress is likely to lose its majority after 30 years in power when South Africans take to the polls on May 29, with a coalition government a possibility to help the ANC retain power. But in a note to clients on Wednesday, Citi analyst Luis Costa said the risk premium connected to the upcoming elections had fallen for the local currency, adding that a market-adverse coalition is now seen as less likely. "With election day premium somewhat past peak, the more fundamental factors in (rand) have been recently supportive of economic activity such as ... the improved domestic load-shedding (which although may not last after the polls close)," Costa said, referring to rolling blackouts. On the stock market, the Top-40 (.JTOPI) New Tab, opens new tab index closed up around 0.2%, while the broader all-share (.JALSH) New Tab, opens new tab index had climbed 0.3% from its previous close. South Africa's benchmark 2030 government bond was weaker, with the yield up 4 basis point to 10.515%. Sign up here. https://www.reuters.com/markets/currencies/south-african-rand-slips-expected-us-rate-cut-delay-2024-05-08/

2024-05-08 15:00

May 8 (Reuters) - Fox Corp (FOXA.O) New Tab, opens new tab beat Wall Street estimates for third-quarter profit on Wednesday, due to lower expenses, even as its revenue tumbled more than 15% on weakness in its advertising business. The media company benefited from a near 25% fall in operating expenses in the quarter. That helped it report an adjusted profit of $1.09 per share, compared with LSEG estimates of 96 cents. Shares of the company behind the Fox sports network and Fox News were up 1.3% in early trading. Fox also posted a net income of $666 million, compared with a loss of $54 million a year earlier, thanks to the absence of charges tied to its settlement last year with Dominion Voting Systems. The company's ad revenue fell by more than a third in the first three months of the year as Fox grappled with the lack of a Super Bowl broadcast and fewer National Football League games. Media companies have seen a decline in ad dollars in the past year as an uncertain economic environment pressured spending at marketers. Fox reported total revenue of $3.45 billion for the period, compared with $4.08 billion a year earlier. The figure was in line with estimates. As part of its efforts to grow business, Fox in February agreed to form a sports-streaming joint venture with Walt Disney (DIS.N) New Tab, opens new tab and Warner Bros Discovery (WBD.O) New Tab, opens new tab. The venture is expected to have 5 million subscribers in the first five years, Fox Corp CEO Lachlan Murdoch has said. Sign up here. https://www.reuters.com/business/media-telecom/fox-profit-beats-estimates-lower-costs-help-offset-ad-revenue-weakness-2024-05-08/