2025-11-04 08:02

ZURICH, Nov 4 (Reuters) - The Swiss National Bank is well positioned with its current interest rates, governing board member Petra Tschudin told Swiss broadcaster TeleZueri in an interview to be broadcast on Tuesday. "We always use monetary policy in such a way that we can fulfil our mandate of ensuring price stability," Tschudin said, referring to the central bank's target range for inflation of 0-2%. Sign up here. "And if you look at our inflation forecasts, you will see that inflation is between 0 and 2% over the medium term. And from that perspective, interest rates are where they should be," she told the CEO Talk programme. The comments could be seen as a hint the SNB will keep its policy rate at 0%, the lowest among major central banks, although Tschudin said the world was changing rapidly. Markets currently give a 93% probability the SNB will not change its policy at its next meeting on December 11. Tschudin noted that the low interest rates made it more difficult for pension funds to invest, but did not rule out negative interest rates in future. The central bank would only deploy negative rates "if necessary", she said, but with the current inflation SNB forecasts there was no need. "We are in a good position at the moment," Tschudin said. "We are in a situation where monetary policy and the exchange rate are such that the inflation forecast is where we want it to be." https://www.reuters.com/business/finance/swiss-national-bank-good-position-with-current-rates-board-member-says-2025-11-04/

2025-11-04 07:57

Aramco's third-quarter net profit down due to lower crude prices Aramco raises 2030 sales gas production capacity growth target Revenues, net profit rise from previous quarter on higher production Gearing up year-on-year as company taps debt market DUBAI, Nov 4 (Reuters) - Saudi Arabian oil company Aramco (2223.SE) , opens new tab, the world's top oil exporter, reported a 2.3% decline in its quarterly profit on Tuesday, citing a drop in crude and product prices, but performance improved from the previous quarter as oil production rose. Shares rose up to 1.1% to 25.88 riyals at around 5 GMT after the earnings were published Sign up here. The kingdom has been pumping more crude as OPEC+ unwinds voluntary production cuts after several years of cutting back to support the market. In October, crude oil futures fell for a third consecutive month, dropping more than 2% and hitting a five-month low on October 20, on fears of a supply glut and economic concerns about U.S. tariffs. , Aramco reported a net profit of 101.02 billion riyals ($26.94 billion) in the three-month period ended on September 30, down from 103.4 billion riyals last year. However, net profit was up around 19% compared to the second quarter as revenues rose due to higher volumes and prices for both crude oil and refined and chemical products. The company's total hydrocarbon production was 13.27 million barrels of oil equivalent per day (boepd) in the third quarter, compared to 12.8 million boepd the previous quarter. On Sunday, the Organization of the Petroleum Exporting Countries and their allies, known as OPEC+, agreed to a small oil output increase for December and a pause in increases in the first quarter of next year, in what some investors saw as a signal of oversupply in the market. Adjusted net profit, which does not include non-recurring items, at Aramco came in at $28 billion during the third quarter, beating a company-provided median analyst estimate of $26.5 billion. FOCUS ON GAS Aramco on Tuesday raised its 2030 sales gas production capacity growth target to about 80% above 2021 levels, up from its earlier goal of more than 60%. This increase is expected to bring total gas and associated liquids production to around 6 million boepd, the company said. "Part of that is from our unconventional gas expansion at Jafurah, which attracted significant interest from global investors," CEO Amin Nasser said in a statement. Aramco's Jafurah project is central to Saudi Arabia's ambitions to become a major global player in natural gas and last week the firm completed an $11 billion lease and leaseback investment agreement for the field gas processing facilities with a consortium of investors including BlackRock's GIP. The company confirmed a previously outlined $21.3 billion in total dividends for the third quarter, about $200 million of which is performance-linked dividends. The dividends, which will be about one-third lower this year, are a critical source of income for the Saudi Arabian government, which owns 81.5% of Aramco shares directly and another 16% through its sovereign wealth fund PIF. The kingdom has invested billions to diversify its economy away from oil. Still, oil generated 62% of the government's revenue last year, and the International Monetary Fund estimates the kingdom needs oil prices at more than $90 a barrel to balance its 2025 budget. Saudi issuers including Aramco accounted for 18.9% of the $250 billion in emerging-market dollar debt in the first half of the year, Fitch said in August, driven by strong investor demand. Aramco raised $5 billion from a bond in May and a further $3 billion from a sale of Islamic bonds in September. Total borrowing rose to $95.1 billion as of September 30 from $80.9 billion a year earlier, while gearing, a measure of indebtedness, stood at 6.3% from 1.9% at the end of September 2024. ($1 = 3.7504 riyals) https://www.reuters.com/world/middle-east/aramco-posts-23-fall-third-quarter-net-profit-2025-11-04/

2025-11-04 07:46

Group is reviewing conglomerate structure Says no decision has been taken on Primark demerger Hopes to complete review by April 2026 Full-year profit down 13% on weak sugar business Shares down 3.2% LONDON, Nov 4 (Reuters) - Associated British Foods (ABF.L) , opens new tab could separate its Primark fashion chain from its food businesses, it said on Tuesday, as it reported a 13% drop in full-year profit driven by a weak performance in its sugar unit. In addition to Primark, which trades from 475 stores in 18 countries and contributes over half of AB Foods' profit, the group owns grocery brands such as Ovaltine, Ryvita and Twinings, as well as major sugar, agriculture and ingredients businesses. Sign up here. CEO George Weston said the board had for "several weeks" been conducting a review of the group's structure with a view to maximising long-term value, a process it hoped to conclude by April 2026 when first-half results are reported. "Although no decision has been taken, the outcome of this review may lead to the board deciding to undertake a separation of the Primark and Food businesses," the group said, adding that Rothschild & Co had been assisting with the process. PRIMARK MAY HAVE $18 BILLION IMPLIED MARKET CAP Analysts at Panmure Liberum said the foods businesses had helped Primark survive during the pandemic when its shops were closed and it had no online offer. But they said the group was valued at a 11% conglomerate discount to peers. They said using a price-to-earnings methodology based on 2026 forecasts, a separated Primark could have an implied market capitalisation of 13.4 billion pounds ($18.0 billion) compared with 18.5 billion pounds for the group. Weston, who for years has defended AB Foods' conglomerate structure, told Reuters the group wouldn't be announcing the review "if we didn't think that there was a fair likelihood of it happening". "But there are a number of issues that we can now investigate which could make us think that keeping them together was a better idea," he said in an interview. Weston said the review reflected Primark's scale and growth opportunities and a belief that the food businesses are underappreciated by investors. "We would really welcome more scrutiny based on more understanding of food," he said. The review is being conducted in consultation with the group's largest shareholder, Wittington Investments, which remained committed to maintaining majority ownership of both businesses. Wittington, which is controlled by the Weston family, owns 58.8% of the group's equity, according to LSEG data. "This isn't a portfolio review. This review has one question, which is, does Primark belong with food or not?" said Weston. "The way that the demerger would work would simply be, if you had one share in ABF, you'd end up with one share in ABF and one share in 'Newco'." Weston said if there was a demerger, he would be CEO of the foods businesses. A new CEO for Primark is still being sought after Paul Marchant's resignation in March. A POSITIVE SURPRISE, ANALYSTS SAY "This is a positive surprise," said analysts at Barclays. "Primark is now of a size that it makes sense, and food is undervalued within ABF." Shares in AB Foods were down 3.2% at 1139 GMT, paring 2025 gains to 8%. The group made adjusted operating profit, its preferred profit measure, of 1.734 billion pounds in its year to September 13, on revenue down 3% at 19.46 billion pounds. While adjusted operating profit increased 2% at Primark, it fell 6% in grocery, while sugar was only breakeven, hurt by low European prices. "In 2026, we expect the group to deliver growth in adjusted operating profit and adjusted EPS, and we are confident in the group's medium and long-term growth prospects," AB Foods said. However, it cautioned it expected the consumer environment to remain subdued. ($1 = 0.7451 pounds) https://www.reuters.com/business/retail-consumer/primark-owner-ab-foods-profit-falls-13-weak-sugar-business-2025-11-04/

2025-11-04 07:44

KYIV, Nov 4 (Reuters) - Ukraine, whose power system has come under continued drone and missile attacks by Russia, boosted its electricity imports to a this-year high of 360 megawatt hours in October, the Ukrainian ExPro consultancy said late on Monday. Ukrainian power imports stood at 140 Mwh in September and 264 MWh in August. Sign up here. Ukrainian officials say Russia has sharply intensified attacks on Ukrainian power facilities, causing blackouts in many regions. ExPro said Ukraine had imported power mostly from Hungary and Poland. Ukraine can import no more than 2,100 MW per hour of electricity from EU states simultaneously, but the head of the Ukrainian power grid operator said on Tuesday the country was currently utilising 30% to 50% of this capacity. "There is a possibility for import and it is significant," Vitalii Zaichenko said on national television. https://www.reuters.com/business/energy/ukraines-power-imports-rocketed-october-amid-russian-attacks-analyst-says-2025-11-04/

2025-11-04 07:37

No update on sale of Castrol unit Q3 profit of $2.21 billion vs forecast $2.02 billion CEO expects asset sales to reach around $5 billion for 2025 LONDON, Nov 4 (Reuters) - Oil major BP (BP.L) , opens new tab reported a smaller than expected fall in third-quarter underlying profit on Tuesday as higher refining margins partly offset the impact of lower crude prices. The company said it made an underlying replacement cost profit, or adjusted net income, of $2.21 billion, compared with the average estimate of $2.02 billion in a company-provided poll of analysts and $2.27 billion a year ago. Sign up here. BP kept the pace of its quarterly share buyback programme at $750 million through the third quarter. Chief Executive Murray Auchincloss said he expected completed or announced asset sale agreements would reach around $5 billion this year. NO UPDATE ON CASTROL SALE BP's European rivals Shell (SHEL.L) , opens new tab and TotalEnergies (TTEF.PA) , opens new tab also posted third-quarter profit falls last month, dragged down by lower oil prices, though Shell beat expectations helped by better trading results in its huge gas division and Total benefited from higher refining margins. Average Brent crude prices during the quarter declined 13% from the same period last year. There was no update on the closely-watched sale process for BP's Castrol lubricants unit, which is the centre-piece of its $20 billion disposal programme. BP's customers and products division, boosted by higher refining margins, reported profit before interest and tax of $1.61 billion, slightly above analysts' forecast of $1.59 billion and outperformed last year's $381 million. BP's operating cash flow in the quarter was $7.8 billion, above last year's $6.8 billion. As previously guided, net debt was steady at around $26 billion compared with the previous quarter. https://www.reuters.com/business/energy/bp-third-quarter-profit-beats-expectations-221-billion-2025-11-04/

2025-11-04 07:25

MUMBAI, Nov 4 (Reuters) - The Reserve Bank of India's aggressive dollar sales to defend the rupee are draining liquidity from the banking system, prompting calls for bond purchases to ease the strain, ten traders and economists told Reuters. The RBI has scope to buy 1 trillion–1.5 trillion rupees ($11.3–$17.1 billion) of government bonds, citing a shrinking liquidity surplus even as the central bank signals policy space to support growth, they said. Sign up here. Predictable and surplus liquidity is important to keep rates low in the Indian economy which is facing pressures from U.S. tariffs and slow capital flows. "The potential OMO purchase space has expanded to 1-1.5 trillion rupees up from 500-700 billion rupees," Samiran Chakraborty, chief India economist at Citi wrote in a note on Monday. "We anticipate an OMO announcement following a 'price' signal from rising yields/overnight rates or potentially at the December MPC meet to offset a status-quo on rates," he said. The central bank will meet banks and dealers this week, Reuters reported. The RBI had last conducted OMO purchases in May, and bought bonds worth 2.4 trillion rupees in the first half. Last week, the central bank rejected bids for a bond auction, signalling its discomfort with higher yields. India's banking system liquidity surplus fell to its lowest this fiscal year in October, despite inflows from a cash reserve ratio cut announced in June. Durable liquidity declined from 5.2 trillion rupees ($59 billion) on Sept. 19 to 3.6 trillion rupees on Oct. 17 and could slip further to around 3.3 trillion rupees by Oct. 24, Citi said in a note. Traders estimate the RBI's dollar sales to defend the rupee have drained 1.5–2 trillion rupees from the system this month. The rupee hit a record low of 88.80 in October and has stayed near that level, supported mainly by central bank intervention. Short-term bond yields and money market rates have stayed firm despite sharp RBI rate cuts. Yields fell on Tuesday amid speculation of central bank bond purchases. IDFC First Bank expects the RBI to buy about 2 trillion rupees of bonds over the next five months. "Despite not very favourable demand-supply dynamics, some of the upward pressure on yields could reduce due to expected OMO purchases as support from rate cut expectations will be limited as majority of the cycle is behind us," said Gaura Sen Gupta, chief economist at IDFC First Bank. ($1 = 88.5950 Indian rupees) https://www.reuters.com/world/india/india-central-banks-rupee-defense-saps-liquidity-fuels-bond-buy-bets-2025-11-04/