2024-09-03 07:35

MUMBAI, Sept 3 (Reuters) - The Indian rupee declined on Tuesday, tracking weak Asian peers, but the central bank's repeated intervention at current levels in the recent past meant that the losses were fairly limited. The rupee was at 83.9475 to the U.S. dollar at 11:02 a.m. IST, down from 83.9175 in the previous session. Asian peers were down 0.1% to 0.6%, and the dollar inched up against a basket of its major peers. The Reserve Bank of India has on many occasions over the last month intervened near the current levels to prevent the rupee from dipping past 84. "While upside pressure (on the dollar/rupee) is there, no point in chasing it," a proprietary trader at a bank said. "I am not sure whether the RBI is on the offer today. Their past behaviour is often sufficient to deter speculators and offers support to importers." The rupee has been among the least volatile in the Asian currency space, thanks largely to RBI's intervention. The RBI's active intervention is keeping the rupee within a narrow band, and as long as that continues, not much will happen, Amit Pabari, managing director at FX advisory firm CR Forex, said. AWAITING CUES ON FED The Federal Reserve will meet on Sept. 17-18, when it is nearly certain to cut interest rates. A 25 basis point rate cut is fully priced in and there is a 1-in-3 probability of a larger rate cut. In the lead-up to the decision, a host of U.S. data is due. The most important among them is this Friday's August U.S. jobs report and next Wednesday's inflation report. The former is more crucial considering the Fed's focus is now on avoiding a further deterioration in the U.S. labour market. Sign up here. https://www.reuters.com/markets/currencies/rupees-decline-capped-by-central-banks-recent-behaviour-2024-09-03/

2024-09-03 07:25

China plans anti-dumping probe into Canola imports from Canada Beijing will also look at some Canadian chemical imports Investigation follows Canadian tariffs on Chinese EV imports China is world's biggest oilseed importer Canada accounts for majority of China's canola imports BEIJING, Sept 3 (Reuters) - China said on Tuesday it planned to start an anti-dumping investigation into canola imports from Canada, after Ottawa moved to impose tariffs on Chinese electric vehicles, lifting prices of domestic rapeseed oil futures to a one-month peak. Canadian Farm Minister Lawrence MacAulay said the move was "deeply concerning". In a post on the X social media network, he said Ottawa was closely following the case and would defend and support the farm sector. Canada, following the lead of the United States and European Union, announced last week a 100% tariff on imports of Chinese electric vehicles and a 25% tariff on imported steel and aluminium from China. "China strongly deplores and firmly opposes the discriminatory unilateral restrictive measures taken by Canada against its imports from China despite the opposition and dissuasion of many parties," a commerce ministry spokesperson said in a statement. The ministry said China will also initiate an anti-dumping investigation into some Canadian chemical products. More than half of canola produced in Canada makes its way to China, the world's biggest oilseed importer. Canola, also called rapeseed for certain variants, is used as a cooking oil and in a wide range of products including renewable fuels. The Canola Council of Canada said it was confident that China's probe would show that Canadian producers were playing by the rules. In a statement, it said Canadian exports of canola to China last year totaled C$5.0 billion ($3.7 billion). China's rapeseed meal futures on the Zhengzhou Commodity Exchange jumped 6% to 2,375 yuan ($333.56) per metric ton following the announcement, hitting its highest since Aug. 6. The ICE canola contract for November delivery dropped to its daily limit of $45, or 7%, to $569.7 per metric ton. "Canada's canola exports to China have increased significantly and are suspected of dumping, reaching US$3.47 billion in 2023, with a 170% year-on-year increase in volume and a continuous decline in prices," the ministry said. "Affected by the unfair competition of the Canadian side, China's domestic rapeseed-related industries continued to suffer losses," it said. China's rapeseed meal prices have plunged 22% so far this year amid abundant oilseed supply and rising domestic production. "The current (edible oil) domestic consumption is not strong, and there is an abundant supply of domestic stocks,” said Ma Wenfeng, senior analyst at Beijing-based agriculture consultancy Beijing Orient Agribusiness Consultancy. China imports its canola predominantly from Canada, followed by Russia and Mongolia. "Arrivals from Canada have been growing at a fast rate," Ma said. The world's second largest economy imported 5.5 million tons of canola in 2023, valued at $3.72 billion. Imports from Canada accounted for 94% of the total. Comparatively, the bulk of China's electric vehicle exports to Canada is from Tesla's Shanghai factory and local Chinese firms have no big exposure to that export market yet. Canadian imports of automobiles from China to its largest port, Vancouver, jumped 460% year over year to 44,356 in 2023, when Tesla started shipping Shanghai-made EVs to Canada. The Chinese spokesperson said it intends to resort to the World Trade Organization dispute settlement mechanism for Canada's relevant practices. China has also initiated trade investigations on imports of pork, brandy and dairy from the European Union in response to curbs on its electric vehicle exports. ALTERNATIVE SUPPLIES China had targeted Canadian canola in previous trade tensions. In 2019, it suspended two Canadian canola exporters before removing the restrictions three years later. Analysts said China could turn to Australia and Ukraine for alternative supplies, especially as Australia's canola production is ample. Canola production in Europe has been hit by poor weather while China's agriculture trade with Ukraine is limited. "We expect China to buy larger volumes from Australia if restrictions on Australian canola are eased," said Ole Houe, director of advisory services at IKON Commodities in Sydney. "As of now Australia's canola exports to China are negligible, just about 500 tons since the beginning of 2024," Houe said. China's imports of Australian canola have been restricted due to concerns about blackleg disease. ($1 = 7.1201 Chinese yuan renminbi) ($1 = 1.3552 Canadian dollars) Sign up here. https://www.reuters.com/business/china-says-it-will-start-anti-dumping-probe-into-canola-imports-canada-2024-09-03/

2024-09-03 07:13

JOHANNESBURG, Sept 3 (Reuters) - The South African rand weakened on Tuesday after data showed the country's second-quarter economic growth was slightly weaker than expected. At 1537 GMT, the rand traded at 17.9725 against the dollar , about 0.9% softer than its previous close. Gross domestic product expanded 0.4% in quarter-on-quarter seasonally-adjusted terms in April to June (ZAGDPN=ECI) , opens new tab, below the 0.5% forecast by economists polled by Reuters, figures released by Statistics South Africa showed. While growth was supported by higher consumer spending and power availability, there were output declines in agriculture, mining and transport. "The outcome is reflective of a still subdued economy, constrained by a number of challenges, notably logistical bottlenecks at the ports and railways which continue to hinder activity and export potential," Investec economist Lara Hodes said in a research note. On the stock market, the Top-40 (.JTOPI) , opens new tab index closed 1.6% lower. South Africa's benchmark 2030 government bond was up marginally, with the yield down 1 basis point at 9.215%. Sign up here. https://www.reuters.com/markets/currencies/south-african-rand-weakens-ahead-q2-gdp-data-2024-09-03/

2024-09-03 07:09

LONDON, Sept 3 (Reuters) - The pound eased on Tuesday, edging lower against both the dollar and the euro, as investors booked some profit on sterling's largest monthly rally in 10 months ahead of a key read of the U.S. jobs market later this week. Data on Tuesday showed summery weather in August helped boost UK consumer spending, as shoppers splashed out on food and drink, although this did little to support the pound. Sterling , which gained 2.13% in August in its strongest monthly increase since November 2023, was down 0.2% against the dollar at $1.31165 in early trade, some 1.2% below last week's two-year high of $1.3269. The euro was up 0.1% against the pound at 84.295 pence, rising for a third consecutive day after having hit a one-month low late last week. Barclays said on Tuesday consumer spending on its credit and debit cards rose by 1.0% year-on-year in August, bucking two months of decline. A separate survey from the British Retail Consortium also showed spending in shops increased by 1.0% in annual terms in August, the strongest uptick since March. The reports chimed with various consumer and business surveys that suggest Britain's economy will expand at a solid pace through the second half of the year, albeit slowing from the rates seen earlier in the year as the economy rebounded from a shallow recession. "We’re finally back at a point where it is at least possible to infer that solid growth in retail values might be a function of underlying volumes improving, rather than just reflecting higher prices," strategists at Lloyds said. BEST PERFORMER The pound is by far the best performing major currency against the dollar this year, having risen by 3.1% so far, compared with a 0.2% rise in the euro, the runner-up, and the Norwegian crown , whose 4.5% decline so far has overtaken the 3.6% fall in the Japanese yen . The principal driver is the expectation among traders that UK rates will take a lot longer to meaningfully fall than those in the euro zone or the United States. The Bank of England meets in two weeks' time to set monetary policy, but the derivatives market shows traders see little chance of another 25-basis point cut to follow June's. November is the most likely meeting for another . In six months' time, markets show traders expect British rates to be around 75 bps lower than where they are right now, compared with an expected drop of 120 bps in U.S. rates by then. Sign up here. https://www.reuters.com/markets/currencies/sterling-eases-after-scorching-august-rally-2024-09-03/

2024-09-03 06:58

DUBAI, Sept 3 (Reuters) - Saudi shipping firm Bahri (4030.SE) , opens new tab said on Tuesday its tanker Amjad was not targeted in a Red Sea attack, and that it had been spared any damage from the incident that hit another tanker that was sailing nearby. The U.S. Central Command said Yemen's Iran-backed Houthi rebels attacked two crude oil tankers - the Saudi-flagged Amjad and the Panama-flagged Blue Lagoon I - in the Red Sea on Monday with two ballistic missiles and a one-way attack uncrewed aerial system, hitting both vessels. "We unequivocally affirm that AMJAD was not targeted and sustained no injuries or damage. The vessel remains fully operational and is proceeding to her planned destination without interruption," Bahri, which owns and manages Amjad, said in a statement titled "Unexplained aerial activity reported". "Bahri has promptly informed all relevant authorities and remains in continuous communication with our crew as we vigilantly monitor the situation," it added. The Houthis late on Monday claimed responsibility for targeting the Blue Lagoon with multiple missiles and drones but did not make any mention of the Saudi tanker. Both vessels were laden with crude oil, with the Amjad carrying about two million barrels of oil, according to the U.S. military statement, which described the attacks as "reckless acts of terrorism by the Houthis." Two sources had told Reuters on Monday that the ships were sailing near each other when they were hit but were able to continue their voyages with no major damage or casualties. One of the sources told Reuters the Amjad was unlikely to have been directly targeted. Sign up here. https://www.reuters.com/world/middle-east/saudi-vessel-amjad-was-not-targeted-red-sea-shipping-firm-bahri-says-2024-09-03/

2024-09-03 06:54

Total of almost 10 gigawatts of renewables successful Orsted's Hornsea 4 and Hornsea 3 awarded contracts Iberdrola's East Anglia Two and Three projects win contracts Analysts say Britain still not set to meet wind targets LONDON, Sept 3 (Reuters) - Orsted (ORSTED.CO) , opens new tab and Iberdrola (IBE.MC) , opens new tab were among the winning offshore wind projects in Britain's latest renewable power auction, the government said on Tuesday, a boost to the sector after a sale last year failed to secure any offshore wind. The Labour government, which came to office in July, plans to decarbonise the electricity sector by 2030, which will require a big increase in renewable power capacity such as wind and solar. Energy Secretary Ed Miliband issued a statement saying the Labour administration had "inherited a broken energy policy" and the auction on Tuesday marked progress it would build on. The auction supported 131 wind, solar projects and tidal projects capable of generating almost 10 gigawatts (GW) of capacity, which would be enough to power around 11 million homes, Miliband said. But analysts said the result was not enough to meet the country's target of expanding offshore wind capacity to 60 GW by 2030 from around 15 GW now. "With (next year’s seventh auction) being the last chance to procure capacity for delivery before 2030, an additional 31 GW of offshore wind capacity is needed to meet the target," Pranav Menon, a research associate at Aurora Energy Research, said. Orsted's giant offshore wind project Hornsea 4 secured the largest contract by capacity at 2.4 GW. Iberdrola also won contracts for its East Anglia Two and East Anglia Three offshore wind projects. RWE UK (RWEG.DE) , opens new tab Country Chair Tom Glover told Reuters it was positive to see offshore wind projects in the auction, but he was disappointed two thirds of "the eligible pipeline" had been omitted when the government has said it wants to accelerate the sector. RWE is developing the Norfolk Vanguard West and East offshore wind projects it bought from Vattenfall last year that have a combined capacity of 2.8 GW. The company did not confirm whether it had entered them into the latest auction. RWE won contracts for a total of 218 megawatts of capacity across five onshore wind and solar projects. Through the auctions, held annually, the government invites renewable project developers to bid for government-backed price guarantees for the electricity produced, called Contracts for Difference (CfDs). When wholesale electricity prices are lower than the minimum, the government covers the difference, if they go above, producers pay back the difference to the government. The fifth auction held in 2023 failed to attract any offshore wind projects as developers deemed the incentives offered too low. In Tuesday's sixth auction result, the electricity price contracts for offshore wind were 54.20 pounds ($71.09) to 58.90 pounds per megawatt hour (MWh) in 2012 prices, government data showed. Analysts at Jefferies estimated this would be worth between 82.60 and 89.70 pounds/ MWh in 2027 prices - when the first projects would be expected online - when including inflation. Spot electricity prices in Britain are volatile but the day-ahead contract currently trades around 92 pounds/MWh. ($1 = 0.7624 pounds) Sign up here. https://www.reuters.com/sustainability/climate-energy/orsted-iberdrola-among-winners-british-renewable-power-auction-2024-09-03/