2024-09-09 18:42
Canadian dollar gains 0.1% against the greenback Price of U.S. oil increases 1.5% 10-year yield rises 4.4 basis points Curve moves closer to disinversion TORONTO, Sept 9 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Monday as Wall Street rallied, but the move was limited ahead of a speech by Bank of Canada Governor Tiff Macklem that could offer clues on the pace of interest rate cuts. The loonie was trading 0.1% higher at 1.3553 to the U.S. dollar, or 73.78 U.S. cents, after hitting a two-week low on Friday at 1.3582. "The Canadian dollar's recovery today is not really about good developments coming out of Canada," said Marc Chandler, chief market strategist at Bannockburn Global Forex LLC. "Today's move is primarily respecting that the 1.36 level held and we've got a jump in U.S. stocks today. We've got a risk-on mode." Wall Street's main stock indexes rebounded from a week of steep losses, as focus shifted back to the size of interest rate cuts by the Federal Reserve in 2024 and a crucial inflation report due on Wednesday. Canada is a major producer of commodities, including oil, so the currency tends to be sensitive to shifts in investor sentiment. U.S. crude oil futures were trading 1.5% higher at $68.67 a barrel. Macklem is due to speak on Tuesday in London, United Kingdom on the topic of global trade, after saying last Wednesday that a larger interest rate cut could be in order if the economy needs a boost. Data on Friday showed the unemployment rate climbing to 6.6%, its highest level in seven years excluding the pandemic years of 2020 and 2021. Canadian government bond yields were mixed as the curve moved closer to disinversion. The 2-year eased 2 basis points to 3.030%, while the 10-year was up 4.4 basis points at 3.010%. The 10-year has traded below the 2-year since July 2022. Sign up here. https://www.reuters.com/markets/currencies/canadian-dollar-edges-up-2-week-low-stocks-rally-2024-09-09/
2024-09-09 18:20
RABAT, Morocco, Sept 9 (Reuters) - Floods from torrential rains killed at least 18 people in the southern Morocco provinces of Tata, Tiznit, Errachidia, Tinghir and Taroudant, authorities said in a latest death toll on Monday. At least four others were missing after floods swamped many villages in the area on Saturday, authorities added. The dead include three foreign nationals from Spain, Canada and Peru, it said. The floods destroyed 56 homes and damaged 110 roads, as well as damaging electricity, water supply and phone networks. Sign up here. https://www.reuters.com/world/africa/morocco-floods-death-toll-rises-18-authorities-say-2024-09-09/
2024-09-09 18:18
BRASILIA, Sept 9 (Reuters) - Brazilian economists surveyed weekly by the central bank have aligned their expectations with future interest rate pricing, now anticipating a rate hike at this month's monetary policy meeting following stronger-than-expected economic data. The shift ended an 11-week streak in which more than 100 professionals surveyed had maintained their median forecast for the benchmark interest rate, the Selic, to remain at the current 10.50% level through year-end. The change came after Latin America's largest economy posted surprising growth in the second quarter, prompting a wave of upward revisions for this year's expansion. According to the central bank's survey, expectations now see a 25-basis-point hike in each of the three remaining rate-setting meetings this year, with borrowing costs closing 2024 at 11.25%. "This scenario underscores the market’s concern about balancing economic growth with inflation control, and points to a higher interest rate environment to contain inflationary pressures," said Arnaldo Lima, economist and institutional relations chief at Polo Capital Management. Bank of America in a Monday report revised its interest rate outlook, now expecting a 25-basis-point increase next week followed by two hikes of 50 basis points each by December. Its previous call was for steady rates this year. "Four key factors support the change in our view: inflation expectations failed to decline in recent weeks, the Brazilian real remained above 5.50 per dollar, growth surprised to the upside and the local yield curve is fully pricing a hike in for the next Copom meeting," the BofA team led by David Beker wrote. The central bank survey also shows the tightening cycle extending into January, with an additional 25-basis-point increase pushing the Selic rate to 11.50% at the beginning of next year. Some institutions had predicted since August that policymakers would begin a tightening cycle at the Sept. 17-18 meeting, a scenario previously reflected in yield curve pricing, which currently shows a 90% probability of a 25-basis-point hike in the upcoming decision. Last week, the bank's economic policy director, Diogo Guillen, highlighted that policymakers had noted stronger economic growth since their latest meeting, with the exchange rate "a bit higher" and inflation expectations remaining broadly unchanged but de-anchored, a cause for concern. The weekly survey also showed respondents raising their gross domestic product forecasts for this year to 2.68%, up from 2.46% the previous week. The following are projections from the survey: Sign up here. https://www.reuters.com/markets/rates-bonds/brazil-economists-see-rate-hike-amid-stronger-growth-ending-11-week-stability-2024-09-09/
2024-09-09 17:59
MEXICO CITY, Sept 9 (Reuters) - Two workers died and another was injured after a fire broke out over the weekend at the biggest domestic refinery owned and operated by Mexico's state oil company Pemex, a company official said on Monday. The fire broke out on Saturday at the Salina Cruz refinery in southern Oaxaca state, plant manager Arturo Recio told reporters, explaining that a storm caused the drains filled with oily waste to overflow into the walkways inside the complex. A 21-year-old woman and 26-year-old man working for Pemex (PEMX.UL) contractors died, and another man was hospitalized, Recio said. He said that work at the main distillation plant and a gasoline plant was paused to avoid further damage, but that none of the other units were affected. Recio added that cleaning and repairs were underway. The refinery's crude oil processing capacity stands at 330,000 barrels per day, and it currently runs at about 70% of its capacity. The refinery was operating normally after the fire, a Pemex source said. Local media reported that the incident started in the refinery's internal courtyards, near some major plants, and that the fire was put out by company workers and civil protection. Sign up here. https://www.reuters.com/world/americas/two-killed-fire-waste-overflow-top-pemex-oil-refinery-mexico-2024-09-09/
2024-09-09 17:48
MEXICO CITY, Sept 9 (Reuters) - Shares of Mexican retailer La Comer (LACOMERUBC.MX) , opens new tab jumped around 5.5% to trade at 35.87 pesos on Monday, after the S&P Dow Jones said the stock would be preliminarily included in its S&P/BMV IPC index as part of a reshuffle. S&P Dow Jones would confirm the inclusion on Friday, and the changes to the index would be effective from Sept. 23. La Comer would be replacing retailer Grupo Elektra (ELEKTRA.MX) , opens new tab, owned by Mexican magnate Ricardo Salinas, which saw trading suspended in July after the company said it had received information regarding a possible fraud. Sign up here. https://www.reuters.com/business/retail-consumer/mexican-retailer-la-comers-shares-jump-after-preliminary-index-inclusion-2024-09-09/
2024-09-09 16:57
ZURICH, Sept 9 (Reuters) - Liberty Global will spin off its Swiss telecoms operator Sunrise to shareholders in the fourth quarter of 2024, it said on Monday. Liberty Global, set up by U.S. cable pioneer John Malone, had previously said it would spin off Sunrise on the SIX Swiss Exchange in the second half of the year. Sunrise, which will be 100% spun off, gave financial details to analysts and investors at an event in Opfikon on the outskirts of Zurich. The company, which provide mobile, landline, broadband and TV services, reconfirmed its financial outlook, saying it still expected broadly stable revenues for 2024 and 2025, without giving any figures. It expects adjusted free cash flow of 360 million Swiss francs to 370 million francs ($424 million - $436 million) for 2024, rising to 370-390 million francs in 2025. In the mid-term, it expects the figure to rise to more than 410 million francs. It plans a dividend payout of around 240 million francs for 2024, with a future dividend policy of paying out up to 70% of adjusted free cashflow. CEO Andre Krause said Sunrise, which was bought by Liberty Global for $7.4 billion in 2020, would succeed as a standalone company. "I am confident that this new company represents a compelling investment opportunity as the only pure play Swiss-listed telco, with a strong free cash flow profile that will underpin an attractive shareholder return policy," he said in a statement. ($1 = 0.8489 Swiss francs) Sign up here. https://www.reuters.com/markets/deals/liberty-global-complete-sunrise-spin-off-q4-2024-09-09/
