2025-11-06 00:01
Rate decision announcement at 1200 GMT BoE is expected to keep Bank Rate at 4.0% But investors have raised their bets on a cut Some think weaker inflation pressure justifies a move now December seen as more likely timing for a cut LONDON, Nov 6 (Reuters) - The Bank of England is set to announce a potentially knife-edge interest rate decision on Thursday with most investors expecting no change before this month's government budget, but some analysts say inflation heat is cooling enough for a cut. What had until recently seemed likely to be a clear majority vote to keep the BoE's Bank Rate at 4.0% now looks much closer. Sign up here. Investors are assigning an almost one-in-three chance of a cut to 3.75%, up from a one-in-10 possibility a month ago. Britain's inflation rate of 3.8% remains the highest among the Group of Seven major advanced economies and the BoE's benchmark interest rate is double that of the European Central Bank. INFLATION HELD STEADY IN SEPTEMBER However, inflation unexpectedly held steady in September and recent jobs data was welcomed by BoE Governor Andrew Bailey as a sign that inflation pressures were easing. Furthermore, finance minister Rachel Reeves is expected to announce broad tax increases in her budget on November 26, possibly weighing on the economy. U.S. investment bank Goldman Sachs last week changed its view and said it now expected a rate cut when the BoE announces its decision at 1200 GMT on Thursday. Other analysts see a tight vote the other way by the nine-member Monetary Policy Committee. "We think the BoE will deliver a dovish hold," analysts at investment bank Evercore ISI said in a note to clients, predicting a 5-4 MPC decision to leave Bank Rate unchanged. After suggesting in August that it might be time to slow its once-every-three-months pace of rate cuts, Bailey and his top officials might think it is too soon to move again, they said. Most economists polled by Reuters last month predicted a 6-3 decision by the MPC to leave Bank Rate unchanged. By the time the MPC meets again next month, it will have details on the extent of tax increases in the budget and official inflation and jobs data for October and November. Julien Lafargue, chief market strategist at Barclays Private Bank, said the lack of clarity on how much the government would raise taxes in its budget represented a missing piece of the puzzle for the central bank. "Should the MPC decide to stay put, a cut in December would still be on the cards in our opinion," Lafargue said. Investors are pricing a roughly 60% chance of a reduction in Bank Rate next month. BOE SEEKING TO CHANGE FORECASTING PROCESS Thursday's announcement will for the first time include summaries of the views of individual MPC members. It will also assign less importance to the central inflation forecast and provide more space for alternative scenarios. The BoE is seeking to change its forecasting process and how it explains its thinking after being widely criticised when British inflation topped 11% in October 2022. In August, the BoE said inflation was only likely to return to its 2% target in the second quarter of 2027. It forecast modest economic growth of 1.25% for this year and next. Bailey and other MPC members are due to give a press conference at 1230 GMT. https://www.reuters.com/business/finance/bank-england-set-tight-rates-decision-inflation-softens-budget-looms-2025-11-06/
2025-11-05 23:50
HOUSTON, Nov 5 (Reuters) - U.S. pipeline operator Energy Transfer (ET.N) , opens new tab will not give its Lake Charles liquefied natural gas export facility in Louisiana a financial go-ahead until 80% of the project has been sold to equity partners, company executives said on Wednesday on a post-earnings call. Energy Transfer has been developing the 16.5 million metric tons per annum LNG export facility and has sold most of the expected production to long-term customers, but has faced rising project costs and wants to share the risk with equity partners. Sign up here. "Our projects need to meet certain risk-return criteria, and we're not there yet on LNG," co-CEO Tom Long said. "We are hoping that these equity partners will step up by the end of the year and get us to where we want this kind of risk profile, in the space we want this project," he added. The company earlier this year signed a non-binding agreement with MidOcean Energy to jointly develop the Lake Charles LNG export facility. MidOcean is expected to pay for 30% of the construction costs of the facility and receive 30% of the LNG production, or roughly 5 million tons a year. POSITIONING FOR BOOMING POWER DEMAND Energy Transfer is also looking to position itself to further benefit from booming power demand from data centers, mulling the conversion of one of its natural gas liquids pipelines to natural gas. Energy Transfer operates three pipelines moving natural gas liquids (NGL) out of the Permian Basin, which straddles Texas and New Mexico. Natural gas liquids such as ethane, butane and propane are used to make plastics and chemicals as well as for heating and cooking. But moving natural gas rather than NGLs may offer considerably better returns, executives said. "Some of the scenarios show twice the revenue with natural gas than what we might see with NGLs," said co-CEO Mackie McCrea. Domestic natural gas consumption will rise from a record 90.5 billion cubic feet per day in 2024 to 91.6 bcfd in 2025 and 2026, the U.S. Energy Information Administration said in its latest Short-Term Energy Outlook. https://www.reuters.com/business/energy/energy-transfer-will-not-greenlight-lake-charles-lng-project-before-80-sold-2025-11-05/
2025-11-05 23:36
OTTAWA, Nov 5 (Reuters) - Bank of Canada Governor Tiff Macklem said on Wednesday the proposals in the federal budget to enhance the country's productivity will yield results if they are executed well. "These things are pointing in the right direction, but it's going to come down to execution," he said, while answering questions during a testimony before the House of Commons Standing Committee on Finance. Sign up here. The federal budget was presented to Parliament on Tuesday laying out billions of dollars as capital investments to build infrastructure, boost productivity, defense spending and housing. https://www.reuters.com/world/americas/bank-canada-governor-says-budget-incentives-will-enhance-productivity-if-2025-11-05/
2025-11-05 23:07
Copom keeps Selic at 15% for third straight meeting, as expected Policymakers say prolonged pause should lower inflation Hawkish tone maintained amid strong labor market BRASILIA, Nov 5 (Reuters) - Brazil's central bank kept interest rates steady for a third straight meeting on Wednesday, signaling greater confidence that holding borrowing costs at current levels for an extended period will be enough to bring inflation back to target. The bank's monetary policy committee, known as Copom, unanimously held the benchmark Selic rate at 15%, its highest since July 2006, an outcome expected by all 40 economists polled by Reuters between October 27 and 31. Sign up here. "The committee evaluates that maintaining the interest rate at its current level for a very prolonged period will be enough to ensure the convergence of inflation to the target," the central bank said in its statement. The slightly revised message shows policymakers are now more confident in their current strategy, after they said in the previous meeting that they would continue assessing whether the rates-on-hold approach would be sufficient. Liam Peach, senior emerging markets economist at Capital Economics, said the statement "all but ends any hope of an interest rate cut before year-end," prompting him to shift his forecast for a first reduction to January from December, flagging risks of a longer delay. The central bank said the current scenario remains marked by unanchored inflation expectations relative to the 3% goal, high inflation projections, resilient economic activity and labor market pressures. It also kept unchanged a reference saying it would not hesitate to raise interest rates if needed, maintaining its hawkish stance amid assessments that Latin America's largest economy is slowing as expected, while the labor market remains strong. Inter's chief economist Rafaela Vitoria, who still sees a 25 basis-point rate cut in January, said this sends a clear message: if fiscal policy loosens further and demand picks up, the bank may need to hike again. Wednesday's decision came after the government became more vocal in criticizing borrowing costs, following a long period of restraint toward the central bank, which since January has been led by Gabriel Galipolo, a nominee of leftist President Luiz Inacio Lula da Silva. Finance Minister Fernando Haddad on Tuesday urged a rate cut, saying that real rates of 10% "make no sense." Policymakers in July halted an aggressive tightening cycle that had added 450 basis points to the benchmark rate. The central bank only slightly adjusted its inflation projections for the relevant monetary policy horizon, now corresponding to the second quarter of 2027, to 3.3% from 3.4% in its monetary policy report in September. For this year, the inflation forecast fell to 4.6% from 4.8%, and for 2026 it remained at 3.6%. Although recent inflation readings have reinforced the trend of cooling prices and the Brazilian currency has appreciated more than 13% against the U.S. dollar so far this year, labor market data continue to show tightness. Many analysts also point to a potential boost in demand from the government's plan to raise the income tax exemption for the middle class, a measure likely to spur consumption among a group more inclined to spend additional income. The initiative, seen as one of Lula's key policies ahead of next year's presidential race, was approved by the Senate on Wednesday and now awaits presidential sanction. https://www.reuters.com/world/americas/brazil-central-bank-holds-rates-sticks-very-prolonged-pause-message-2025-11-05/
2025-11-05 22:54
WASHINGTON, Nov 5 (Reuters) - Executives of MSC, Rolex, Partners Group (PGHN.S) , opens new tab, Mercuria, Richemont (CFR.S) , opens new tab and MKS took part in a meeting of Swiss business leaders with U.S. President Donald Trump in the Oval Office on Tuesday, according to a statement seen by Reuters. Switzerland is facing 39% U.S. tariffs on imports of its goods and both its government and private sector have been working to persuade Trump to reduce the levy. Sign up here. The executives said the meeting was "highly constructive," but that they did not engage in any negotiations with Trump, who revealed on Tuesday that he had met senior representatives from Switzerland to discuss trade, among other topics. "We expressed our belief that a bilateral trade agreement would further enhance economic collaboration in a manner beneficial to Switzerland and the United States," the statement said. The letter was signed by Diego Aponte, president of shipping group MSC, Marwan Shakarchi, CEO of gold refiner MKS PAMP Group, Rolex CEO Jean-Frederic Dufour, Alfred Gantner, a founder of private equity firm Partners Group, Daniel Jaeggi, president of energy trader Mercuria, and Richemont Chairman Johann Rupert. Last month, Swiss companies Mercuria and Partners Group pledged more than $6 billion in U.S. energy investments as part of efforts to lower the tariffs. Mercuria's planned U.S. energy investments could include measures to boost new power generation, carbon capture and storage, as well as U.S. oil recovery, a source said at the time. An MKS spokesperson confirmed Shakarchi took part in the meeting. Representatives from the other companies did not immediately reply to requests for comment. https://www.reuters.com/business/executives-mercuria-rolex-other-swiss-firms-meet-trump-2025-11-05/
2025-11-05 22:43
Nov 5 (Reuters) - U.S. natural gas distributor Atmos Energy (ATO.N) , opens new tab on Wednesday forecast higher earnings for fiscal 2026, after posting an over 30% jump in fourth-quarter profit, as the utility ramps up capital spending on pipeline safety and modernization. The Dallas-based utility expects profit per share of $8.15 to $8.35 in fiscal 2026, up from $7.46 it earned this year. Sign up here. U.S. natural gas output and demand are expected to hit record highs in 2025, according to the U.S. Energy Information Administration's Short-Term Energy Outlook. Atmos also said it will raise its 2026 dividend by 14.9% to $4.00 per share and invest about $4.2 billion next year as part of a broader $26 billion capital program through 2030. For the reported quarter, Atmos said its operating income rose 18.6% to $219.5 million from last year. Its quarterly earnings from its distribution segment rose 34% to $55 million, while its pipeline and storage unit earned $120 million, 29% higher than last year. The company's pipeline and storage segment comprises primarily the regulated pipeline and storage operations of the Atmos Pipeline-Texas division and its natural gas transmission operations in Louisiana. Atmos reported a net income of $175 million, or $1.07 per share, for the quarter ended September 30, compared with $134 million, or 86 cents per share, in the same period last year. It delivers natural gas to about 3.3 million distribution customers in eight U.S. states and operates regulated utility operations in Colorado, Kansas, Kentucky, Louisiana, Mississippi, Tennessee, Texas and Virginia. https://www.reuters.com/business/energy/atmos-energy-forecasts-higher-2026-earnings-after-quarterly-profit-jump-2025-11-05/
