2024-08-19 20:26

TSX ends up 0.3% at 23,116.39 Posts eighth straight day of gains Moves past record closing high set in July Materials sector leads gains Aug 19 (Reuters) - Canada's main stock index rose to an all-time high on Monday, helped by gains for financial and metal mining shares, as investors awaited potential clues this week that the Federal Reserve could soon begin an interest rate cutting campaign. The S&P/TSX composite index (.GSPTSE) , opens new tab ended up 61.78 points, or 0.3%, at 23,116.39, moving past the record closing high it set on July 31. It was the eighth consecutive day of gains for the index, the longest such streak since April 2023. "Big picture is the perception that the Fed will cut interest rates," said Lorne Steinberg, president of Lorne Steinberg Wealth Management. "That is underpinning everything. This is not just a Canadian story." U.S. stocks also added to their recent gains. Fed Chair Jerome Powell's remarks at the Jackson Hole Economic Symposium, due on Friday, will be parsed for clues regarding the central bank's path from restrictive to neutral monetary policy. Bank and energy pipeline stocks could particularly benefit from lower interest rates, Steinberg said, adding "the dividends are sustainable, the valuations are reasonable and lower interest rates means the dividends are more attractive." Heavily weighted financials added 0.3%, while the materials group, which includes metal miners and fertilizer companies, was up 1.4%, helped by gold's recent move to a record high. Shares of Alimentation Couche-Tard Inc (ATD.TO) , opens new tab fell 2.2% after the company sounded out Japan's Seven & i (3382.T) , opens new tab about a potential takeover. Energy was also a drag, falling 0.5%, as the price of oil settled nearly 3% lower at $74.37 a barrel. Canada's freight rail network could come to a grinding halt this week after Canadian National Railway (CNR.TO) , opens new tab and Canadian Pacific Kansas City (CP.TO) , opens new tab on Sunday issued lockout notices to the Teamsters union, which represents nearly 10,000 workers. Shares of both railroads ended higher. Sign up here. https://www.reuters.com/markets/tsx-futures-rise-optimism-around-us-rate-cut-2024-08-19/

2024-08-19 19:50

LONDON, Aug 20 (Reuters) - Stephen Chamberlain, once Mike Lynch's co-defendant in the U.S. fraud trial over the sale of Autonomy to Hewlett-Packard, has died after a road accident, his lawyer said on Monday, days before Lynch went missing off the coast of Sicily. Chamberlain, Autonomy's former vice president of finance alongside chief executive Lynch, was hit by a car in Cambridgeshire on Saturday morning and had been placed on life support, a person familiar with the matter told Reuters earlier on Monday. Chamberlain's lawyer, Gary Lincenberg, who described him as a "dear client and friend", said he had died after being "fatally struck" by a car while out for a run. Cambridgeshire Police on Tuesday confirmed the 52-year-old had died. They said the car's 49-year-old driver had remained at the scene and was assisting with enquiries. Chamberlain's family said he was a much-loved husband, father, son, brother and friend. "He was an amazing individual whose only goal in life was to help others in any way possible," they said in a statement. Lynch was one of six people reported missing early on Monday after a luxury yacht was struck by an unexpectedly violent storm and sank off Sicily. Chamberlain faced the same charges of fraud and conspiracy as his former boss for allegedly scheming to inflate the value of Autonomy, then Britain's largest software firm, before it was sold. Both men were acquitted of all 15 charges by a jury in San Francisco in June. After leaving Autonomy in 2012, Chamberlain worked as chief operating officer for Darktrace, the cyber security company that was backed by Lynch's Invoke venture capital fund. A Darktrace spokesperson said the company was saddened to hear of the demise of Chamberlain, who had been "a substantial contributor to the team in its early years". "Steve was much loved by his colleagues and leaves many friends at Darktrace," the spokesperson said. "We extend our deepest condolences to his wife, Karen, and the rest of his family who are very much in our thoughts at this challenging time." Chamberlain also volunteered as a finance director for Cambridge United soccer club, according to his LinkedIn profile. "He was a courageous man with unparalleled integrity, and we deeply miss him," Lincenberg said. "He fought successfully to clear his good name, which lives on through his wonderful family." Sign up here. https://www.reuters.com/world/uk/mike-lynchs-co-defendant-us-trial-critically-injured-uk-road-accident-source-2024-08-19/

2024-08-19 19:39

Trump aims to limit foreign access to domestic markets, ensure 100% American supply chain Shares in U.S. Steel fell 6% after Trump's remarks on blocking Nippon Steel merger Trump plans to eliminate EPA rules limiting power plant pollution, increase nuclear reactors Trump considers rescinding $7,500 EV tax credit YORK, Pennsylvania, Aug 19 (Reuters) - Republican presidential candidate Donald Trump pledged on Monday to rescind a Biden administration rule limiting power plant pollution and reiterated a promise to block Nippon Steel's (5401.T) , opens new tab planned purchase of U.S. Steel (X.N) , opens new tab. In the most detailed economic remarks he has offered on the campaign trail so far, Trump also ratcheted up his pledge to radically limit foreign access to domestic markets, saying he would ensure the supply chain for essential goods would be 100% American if he wins the Nov. 5 election. He did not elaborate on how he would accomplish that goal beyond advocating broad measures, like imposing tariffs on other nations. The former president spoke to a crowd of supporters on a factory floor in the working-class city of York, Pennsylvania. The speech was the first stop in a tour of battleground states this week aimed at steering the spotlight away from the Democratic National Convention in Chicago and slowing the momentum of his rival,Vice President Kamala Harris. Some allies and advisers have pressed Trump to steer clear of personal attacks on Harris - particularly any broadsides related to race and gender - and instead focus on policy issues. He largely followed that advice on Monday. While Trump called Harris a "communist" and denigrated her policy stances, several of which he misrepresented, he attacked her in personal terms just once, when he insulted her laugh about 45 minutes into the hour-long speech. Trump in February had signaled he would move to block the Nippon-U.S. Steel deal, a potential merger that has stirred anxiety among some unionized workers, a key voting bloc in Pennsylvania and the other "Rust Belt" swing states likely to determine the results of the election. "I will stop Japan from buying United States Steel," Trump said. "They shouldn't be allowed to buy it." U.S. Steel said in a statement after Trump's remarks that it is "committed to the transaction with Nippon Steel, which is the best deal for our employees, shareholders, communities, and customers." The company added the "partnership with Nippon Steel, a long-standing investor in the United States from our close ally Japan, will strengthen the American steel industry, American jobs, and American supply chains, and enhance the U.S. steel industry's competitiveness and resilience against China." Shares in U.S. Steel had been trending lower and fell after Trump's planned remarks were reported, closing down about 6%. President Joe Biden in March said it is vital for U.S. Steel "to remain an American steel company that is domestically owned and operated." Trump also pledged to eliminate rules published by the Environmental Protection Agency in April, which limit air and water pollution from power plants and are designed to cut over 1 billion metric tons of greenhouse gas emissions by 2047. The electricity sector is responsible for nearly a quarter of U.S. greenhouse gas pollution, according to the EPA. "It's a disaster for our country," Trump said. "Instead of shutting down power plants, we will open dozens and dozens more, and they'll happen fast." Trump said his administration would bring more "advanced small, modular nuclear reactors" online and that he would invoke the Defense Production Act to ramp up production of essential products. Even as he pledged broad tax cuts for families, businesses, Social Security disbursements and tips, he said he would slash the deficit, a claim that good government experts have cast doubt on. In a brief interview with Reuters following the event, Trump said he would consider rescinding a $7,500 tax credit for electric vehicle purchases. He also said he would bring Elon Musk into his administration if the billionaire was willing. Musk, the CEO of EV manufacturer Tesla (TSLA.O) , opens new tab and a vocal Trump backer, would stand to lose business if the tax credit were rescinded. Pennsylvania has emerged as one of the most important states in the presidential election, with Harris and Trump effectively neck-and-neck, according to most opinion polls. In a sign of the state's importance, Trump campaigned in the northeastern part of the state over the weekend, while Harris barnstormed the western part. On Monday, Trump's running mate, Senator JD Vance, addressed supporters in Philadelphia. Sign up here. https://www.reuters.com/markets/commodities/trump-reiterate-he-will-stop-us-steel-sale-nippon-2024-08-19/

2024-08-19 19:35

VALJEVO, Serbia, Aug 19 (Reuters) - Hundreds of people gathered in the central Serbian town of Valjevo on Monday to protest Rio Tinto's (RIO.AX) , opens new tab, (RIO.L) , opens new tab lithium project in Western Serbia, over fears it could pollute the land. Protesters in the central square of the industrial city, which has a population of 55,000, and is located about 100 km (60 miles) west of Belgrade, chanted, "You will not dig," and "Rio Tinto, leave Serbia!" "We will not allow it; we will fight as much as we can," said Sonja, 50, a resident of Valjevo. Aleksandar Jovanovic Cuta, one of the protest organizers, said that "the agony called lithium is continuing." "Serbia will not go quiet over this issue. This is non-negotiable," he said. On Aug. 10, tens of thousands rallied in the capital, Belgrade. Authorities said the protests were politically motivated and aimed at toppling populist President Aleksandar Vucic and his government. In Valjevo, protesters also demanded an end to what they perceive as a government clampdown on green activists. Since the Aug. 10 rally, police have questioned and searched the apartments of over 40 green activists, mainly on suspicion of conspiring against the country’s constitution, said activist Aleksandra Bulatovic. She was also questioned for her criticism of the lithium project. "This is unconstitutional; they (authorities) are abusing the law. This is pure repression," she said. Bulatovic denied any wrongdoing. Last month, Belgrade reinstated Rio Tinto's license to develop what would be Europe’s biggest lithium mine, two years after the previous government halted the process following mass rallies by environmental groups. If implemented, the $2.4 billion Jadar lithium project could cover 90% of Europe’s current lithium needs and make Rio Tinto one of the world’s leading lithium producers. Lithium is a key component in batteries for electric vehicles and mobile devices. Serbian officials argue that the lithium mine would boost Balkan country's economy, but environmentalists warn that the cost would be too high. Sign up here. https://www.reuters.com/world/europe/scores-central-serbia-rally-against-rio-tintos-lithium-project-2024-08-19/

2024-08-19 18:39

Canadian dollar gains 0.3% against the greenback Touches its strongest since July 15 at 1.3636 Price of U.S. oil falls 2.9% Bond yields trade mixed across the curve TORONTO, Aug 19 (Reuters) - The Canadian dollar strengthened to a five-week high against its U.S. counterpart on Monday as hopes the U.S. economy could avoid recession bolstered sentiment and ahead of domestic inflation data that could guide expectations for Bank of Canada rate cuts. The loonie was trading 0.3% higher at 1.3640 to the U.S. dollar, or 73.31 U.S. cents, after touching its strongest intraday level since July 15 at 1.3636. "The Canadian dollar, which increasingly functions as a proxy for global risk appetite, is gaining as investors pile into 'soft landing' bets and could continue to do so if tomorrow's domestic inflation data leaves monetary policy expectations broadly unchanged," said Karl Schamotta, chief market strategist at Corpay. The S&P 500 and the Nasdaq rose for an eighth straight session as concerns around an impending U.S. recession abated and markets zeroed in on Federal Reserve Chair Jerome Powell's speech at Jackson Hole later this week. "Powell is expected to join private-sector observers in acknowledging growing downside risks in U.S. labour markets while pointing to a sustained moderation in inflation pressures - conditionally setting the stage for a rate cut at the central bank's September meeting." Schamotta said. The BoC has already begun lowering interest rates and says it's likely to cut further if inflation cools in line with forecasts. Canada's consumer price index report for July, due on Tuesday, is expected to show inflation slowing to 2.5% from 2.7% in June. Canada's freight rail network could come to a grinding halt this week, inflicting a huge economic toll after the country's two largest railroad operators on Sunday issued lockout notices to the Teamsters union that represents nearly 10,000 workers. The price of oil , one of Canada's major exports, fell 2.9% to $74.45 a barrel, while Canada's 10-year yield was little changed at 3.065%. Sign up here. https://www.reuters.com/markets/currencies/canadian-dollar-climbs-5-week-high-ahead-inflation-data-2024-08-19/

2024-08-19 13:53

SANTIAGO, Aug 19 (Reuters) - Chile's gross domestic product fell 0.6% in the second quarter of 2024 compared with the previous three-month period, data released by the country's central bank showed on Monday, in line with market expectations. The figure is likely to open room for the central bank to deliver more interest rate cuts until the end of the year, economists say, after the local monetary authority last month kept its benchmark rate on hold following eight cuts in a row. According to the bank, the quarterly GDP drop was a result of weaker activity in mining, services and manufacturing in the world's largest copper producer, where mining GDP fell 1.0% on a sequential basis. The result marked a steep deceleration from the revised 2.1% quarter-on-quarter growth reported in the first quarter, which also set a strong comparison base for the April-June period. Chile's economy has been regaining ground after facing a sharp economic downturn in 2023, which followed a rapid post-pandemic recovery that generated inflationary pressures and led the central bank to hike rates. As inflation receded, the bank lowered borrowing costs by a total 550 basis points since July 2023 to the current 5.75%. "The fall in Chilean GDP in the second quarter is mainly payback for a strong first quarter, and we expect a return to positive growth in the third quarter," Capital Economics' emerging markets economist Kimberley Sperrfechter said. Still, "the weakness shown in the second quarter means that there's scope for the central bank to deliver two more 25-basis-point interest rate cuts, to 5.25% over the remainder of this year," she added. On an annual basis, the Chilean economy expanded 1.6% in the second quarter, the central bank said, below the 1.8% growth expected in a Reuters poll of economists. Annual GDP was boosted by mining, utility services, commerce and transportation, according to the monetary authority. Mining GDP advanced 5.5% on an annual basis, the bank said. "The second quarter figures show a rise in investment but also a decline in consumption," Scotiabank economist Jorge Selaive said. "This should support lower inflationary pressures and give monetary policy some additional room." The Chilean government expects economic growth to stand at 2.6% in 2024, according to figures released last month. Sign up here. https://www.reuters.com/world/americas/chiles-gdp-down-06-q2-previous-quarter-2024-08-19/