2024-08-15 21:01
SAO PAULO, Aug 15 (Reuters) - Brazilian President Luiz Inacio Lula da Silva will nominate current central bank director Gabriel Galipolo to be the monetary authority's new chief in two weeks, local TV station Globo News reported on Thursday. Sign up here. https://www.reuters.com/markets/brazils-lula-nominate-galipolo-new-cenbank-chief-two-weeks-local-media-reports-2024-08-15/
2024-08-15 20:57
Aug 15 (Reuters) - Federal Reserve Chair Jerome Powell is scheduled to deliver remarks on the economic outlook next Friday, the first full day of the Kansas City Fed's annual economic symposium in Jackson Hole, Wyoming. The annual gathering of global central bankers offers Powell a chance to give an updated assessment of the U.S. economic trajectory and the outlook for monetary policy, midway between the central bank's July and September policymaking meetings. Last month he said that if inflation and the labor market continues to cool, an interest rate cut could be on the table at the Fed's next meeting. The Fed has held its policy rate in the 5.25% to 5.50% range for more than a year now to slow economic growth and keep downward pressure on inflation. Weak job-market data at the start of this month fueled concern among investors that the Fed had left policy restrictive for too long, and that it would need to chop rates an aggressive half a percentage point in September, if not before, to counter a looming recession. Recent data, including a strong retail sales report earlier Thursday, has been more encouraging, suggesting inflation is indeed receding but the economy is far from collapsing. Investors now expect the Fed to start reducing borrowing costs by a more-usual quarter of a percentage point next month. Sign up here. https://www.reuters.com/markets/us/fed-chair-powell-give-economic-outlook-aug-23-jackson-hole-2024-08-15/
2024-08-15 20:56
BRASILIA, Aug 15 (Reuters) - Brazil's President Luiz Inacio Lula da Silva is looking at submitting all four of his upcoming nominations for the board of the central bank at once, including Gabriel Galipolo for the bank's presidency, people familiar with the matter told Reuters. The nominations are expected in the coming weeks, according to Finance Minister Fernando Haddad. If approved by the Senate, Lula's choices will take office in 2025, giving the leftist president seven picks on the central bank's nine-member interest rate-setting committee, known as Copom. The presidential palace did not reply to a request for comment. The Finance Ministry and central bank declined to comment. Galipolo, the central bank's monetary policy director, has long been seen as a strong contender to replace governor Roberto Campos Neto, whose term ends in December, said seven sources, who requested anonymity to discuss the confidential deliberations. Fernando Honorato, chief economist at Banco Bradesco , is being considered for Galipolo's current role, as he has good relations with the Finance Ministry and other government officials, said three sources. One of the sources noted that other candidates are still in the running. Bradesco said it was "unaware of the matter." Another source said that Marcelo Kayath, a partner at QMS Capital and former managing director at Credit Suisse in Brazil, had been approached for the position but declined. Kayath declined to comment on the matter. Two sources said that Gilneu Vivan, the current head of the department regulating the financial system, is one of the names being considered for the director of regulation, a seat now held by Otavio Damaso. The same two sources said Juliana Mozachi, head of the conduct supervision department, is a strong candidate to become director of institutional relations, replacing Carolina Barros. Her appointment would also ensure at least one woman on the rate-setting board, one of the sources noted. Traditionally, the directors of regulation and institutional relations are career central bank officials, unlike the monetary policy director, who runs the foreign exchange desk and often comes from a background in the financial markets. Sign up here. https://www.reuters.com/markets/lula-eyes-galipolo-among-joint-nominations-brazil-central-bank-sources-say-2024-08-15/
2024-08-15 20:44
Jobless claims at one-month low; retail sales surge in July Walmart advances after raising FY profit forecast Cisco gains after forecasting upbeat Q1 revenue, cutting 7% jobs Indexes up: Dow 1.39%, S&P 1.61%, Nasdaq 2.34% Aug 15 (Reuters) - Wall Street's main indexes closed higher on Thursday, with the Nasdaq rising more than 2% after July U.S. retail sales data signaled resilient consumer spending, allaying fears of an imminent recession in the world's largest economy. Nine of the 11 major S&P 500 sectors advanced, led by consumer discretionary (.SPLRCD) , opens new tab and information technology (.SPLRCT) , opens new tab. Retail sales increased 1.0% after a downwardly revised 0.2% drop in June, easing fears of a sharp economic slowdown fanned by a jump in the unemployment rate last week. Retail bellwether Walmart (WMT.N) , opens new tab rose 6.58% after raising its annual profit forecast for the second time this year as Americans flocked to its stores for inexpensive essentials. Rivals Target (TGT.N) , opens new tab and Costco (COST.O) , opens new tab also advanced 4.35% and 1.69%, respectively. A separate reading also showed the number of Americans filing new applications for unemployment benefits fell unexpectedly last week. "The wall of worry is beginning to crumble as sentiment is improving and the fundamentals support a risk-on bias," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. "Retail sales were above expectations, Consumer Price Index numbers came in at a tolerable level, so the fundamental backdrop is consistent with rising equity prices." The yield on two-year and 10-year Treasury notes rose after the data, with traders increasing bets for a 25-basis-point rate cut by the Federal Reserve to 76.5%, versus 65% before the data. Investors have cautiously eyed this week's economic data releases, the last set before Fed Chairman Jerome Powell delivers a much-awaited speech at Jackson Hole next week. The Dow Jones Industrial Average (.DJI) , opens new tab rose 554.67 points, or 1.39%, to 40,563.06. The S&P 500 (.SPX) , opens new tab gained 88.01 points, or 1.61%, at 5,543.22. The Nasdaq Composite (.IXIC) , opens new tab advanced 401.90 points, or 2.34%, to 17,594.50. Among other movers, Cisco Systems (CSCO.O) , opens new tab rose 6.8% after it forecast better-than-expected first-quarter revenue and said it was cutting 7% of its global workforce. Nike (NKE.N) , opens new tab climbed 5.07% as billionaire investor William Ackman built new stakes in the sportswear company. Ulta Beauty (ULTA.O) , opens new tab jumped 11.17% after Warren Buffett's Berkshire Hathaway (BRKa.N) , opens new tab acquired a stake in the cosmetics store chain. Advancing issues outnumbered decliners by a 3.22-to-1 ratio on the NYSE. On the Nasdaq, advancing issues outnumbered decliners by a 2.66-to-1 ratio. The S&P 500 posted 30 new 52-week highs and one new low while the Nasdaq Composite recorded 76 new highs and 104 new lows. Sign up here. https://www.reuters.com/markets/us/rate-cut-hopes-buoy-futures-ahead-fresh-data-2024-08-15/
2024-08-15 20:32
TSX ends up 1.2% at 23,032.72 Posts sixth straight day of gains Tech sector adds 2.7% Energy adds 1.7%; oil settles 1.5% higher Aug 15 (Reuters) - Canada's main stock index rose for a sixth straight day on Thursday, with resource and technology stocks leading a broad-based rally as U.S. economic data bolstered hopes of a soft landing for the economy. The S&P/TSX composite index (.GSPTSE) , opens new tab ended up 272.71 points, or 1.2%, at 23,032.72, stopping just short of its record closing high on July 31. The daily winning streak was the longest since July 2023. The number of Americans filing new applications for unemployment benefits dropped to a one month-low last week and retail sales jumped 1.0% in July, which was the largest increase since January 2023. The data indicates that "we still have resilient economic growth," said Angelo Kourkafas, a senior investment strategist at Edward Jones. "And when you combine that with moderating inflation, that is the recipe for a soft landing." The latest U.S. consumer price index data, released on Wednesday, showed the annual increase in inflation slowing to below 3% for the first time since early 2021. All 10 major sectors moved higher, including a gain of 2.7% for technology as shares of Celestica Inc (CLS.TO) , opens new tab and Shopify Inc (SHOP.TO) , opens new tab climbed. Energy added 1.7% as U.S. crude oil futures settled 1.5% higher at $78.16 a barrel. Gold and copper prices also rose, which helped lift the materials group (.GSPTTMT) , opens new tab. It ended up 1.6%. Canadian Labour Minister Steven MacKinnon has rejected a request by Canadian National Railway Co (CNR.TO) , opens new tab to initiate binding arbitration in a labor dispute with the Teamsters union, a spokesman for the minister said. Still, shares of CN Rail (CNR.TO) , opens new tab and Canadian Pacific Kansas City Ltd (CP.TO) , opens new tab both ended up 1.9%. Sign up here. https://www.reuters.com/markets/tsx-futures-rise-commodities-boost-rate-cut-hopes-2024-08-15/
2024-08-15 20:26
SAO PAULO/WASHINGTON/BUENOS AIRES, Aug 15 (Reuters) - U.S. President Joe Biden on Thursday seemingly backed a new election in Venezuela, after Brazilian President Luiz Inacio Lula da Silva also floated the idea, despite rebuffs from Venezuela's ruling party and its opposition which both claim victory in the July 28 contest. Biden spoke to reporters in the wake of Lula's suggestion that Venezuelan leader Nicolas Maduro could call a new contest involving international observers as a potential solution for the political crisis in the country. The U.S. has rejected Madura's victory claim. Asked if he supports a new election in Venezuela, Biden said "I do". A National Security Council spokesperson later said Biden was "speaking to the absurdity of Maduro and his representatives not coming clean about the July 28 elections," without fully walking back Biden's comment. The spokesperson added it is "abundantly clear" that opposition candidate Edmundo Gonzalez won the election. A U.S. official, speaking on background, said the U.S. position had not changed and the vast majority of countries in the region were asking Maduro to release the results and recognize the outcome of the election. The new election suggestion is among several from the international community which have no support so far from either Maduro or his opposition coalition opponents. The U.S., which hardened oil sanctions in April on the OPEC member for what it said was Maduro's failure to comply with a deal on electoral conditions, and other Western countries are showing little sign of swift, tough action over what many of them have condemned as voting fraud. Maduro rejected Biden and Lula's comments, saying the United States and Brazil have had contested elections where Venezuela has refrained from involving itself. "I reject absolutely that the United States is trying to become Venezuela's electoral authority," Maduro said on state television. "Biden gave an interventionist opinion on the internal issues of Venezuela ... half an hour later they squashed it." Venezuelan opposition leader Maria Corina Machado ruled out Biden and Lula's suggestion. "The election already happened," Machado told journalists from Argentina and Chile in a video call later on Thursday. "Maduro must be made to know that the cost of his staying grows with each day that passes." Ruling party officials in Venezuela have also previously ruled out new elections. Lula had said a "coalition government" could be another possible solution for Venezuela. "If (Maduro) has common sense, he could put it to the people, perhaps calling new elections with a nonpartisan electoral committee," Lula said in a radio interview. The Brazilian president said he still does not recognize Maduro as the winner of the vote and that his government must publish voting tallies that have not been released, echoing calls from countries around the world over the last two weeks. "Maduro knows he owes Brazil and the world an explanation," Lula said. Lula and his Colombian counterpart Gustavo Petro spoke by phone on Wednesday as part of efforts to find a solution to Venezuela's crisis, but no details were released of the conversation. Petro suggested in a post on X on Thursday that the Venezuelan ruling party and the opposition could temporarily trade off power, echoing an arrangement used in Colombia for 16 years in the twentieth century. "The political solution for Venezuela depends on Nicolas Maduro, who carries the peace and prosperity of his country," Petro said, adding in another post that a political deal is the best option and depends on Venezuelans. Petro, who reopened trade and diplomatic relations with Venezuela after he took office in 2022, also called for the lifting of all sanctions on Venezuela. Latin American leaders will discuss the crisis this weekend when many are in the Dominican Republic to attend the inauguration of that country's new president, Panama's President Jose Raul Mulino said on Thursday during his weekly press conference. Lula's top foreign policy advisor Celso Amorim, speaking to the Senate Foreign Relations Committee, said Brazil had not formally proposed a new election in Venezuela. Conservative senators at the hearing criticized the Lula administration for favoring Maduro with its soft stance, and asked what Brazil was doing for jailed opposition leaders. Amorim said Brazil offered to send a plane to pick up six opposition members seeking asylum in the Argentine embassy, now under a Brazilian flag since Venezuela broke ties with Argentina. Venezuela's electoral authority proclaimed Maduro won 51% of the vote but has not divulged full vote tallies. Tallies in possession of the opposition, which it has posted to a public website, show Gonzalez received 67% of the vote. Sign up here. https://www.reuters.com/world/americas/brazils-lula-says-new-election-could-be-solution-venezuela-crisis-2024-08-15/
