2024-09-24 19:21

Sept 24 (Reuters) - Lawmakers from both major parties in the House of Representatives on Tuesday renewed their attacks on Wall Street's chief regulator over his agency's policies on cryptocurrencies, accusing the U.S. Securities and Exchange Commission of hampering the industry's growth. The sometimes heated questioning coincides with mounting election-year political pressure and soaring campaign cash contributions from the industry, which SEC Chair Gary Gensler has described as rife with criminality and other non-compliance leading to steep investor losses. All five of the SEC's members appeared on Tuesday at a hearing of the U.S. House Financial Services Committee, only the third time this has happened in the past 17 years, allowing Republican commissioners to voice dissent alongside its majority Democratic members. Senior Republican lawmakers were joined by some Democrats in expressing stern displeasure. Committee Chairman Patrick McHenry, a Republican, said the SEC had referred to digital assets using a series of different terms that left the crypto industry unsure was to what assets fell under SEC jurisdiction. Gensler said the distinction was "less about the terms. It's more about the economics," referring to Supreme Court precedent on the definition of securities as investment contracts. However, Republican Commissioner Hester Peirce, a vocal critic of Gensler's policies, said the agency had "taken a legally imprecise view to mask the regulatory lack of clarity." This created questions as to whether an asset was a security, part of an investment contract or sold alongside one, which then affected sales, Peirce said. Since taking office, Gensler has insisted the existing securities laws are sufficient for regulating the crypto industry, rebuffing calls for industry-specific regulations. Gensler also defended a 2022 SEC accounting bulletin that lawmakers in May unsuccessfully sought to rescind and which calls on public companies safeguarding crypto assets to record them as balance sheet liabilities. A series of bankruptcies had shown the practice was justified, Gensler said. Gensler also said, depending on the outcome of November's elections, his agency could try again to issue regulations governing corporate disclosures about share buybacks, following a 2023 court decision striking down an SEC rule adopted last year. (This story has been refiled to fix a typo in paragraph 1) Sign up here. https://www.reuters.com/technology/wall-street-watchdog-faces-bipartisan-ire-house-over-crypto-2024-09-24/

2024-09-24 19:00

HOUSTON, Sept 24 (Reuters) - Tropical Storm Helene was expected to turn eastward on its track through the Caribbean and into the Gulf of Mexico, increasing the threat of high winds and heavy rains to Cuba and Florida but lessened the risk to U.S. offshore oil production, forecasters said on Tuesday. The storm was moving through the Caribbean and expected to enter the Gulf of Mexico and become a hurricane by Wednesday, potentially rising to a major hurricane with 115 mph (184 kph) winds on Thursday, the National Hurricane Center said. Its current track takes it along the west coast of Florida toward a landfall on the state's panhandle later this week. That path lessens the risk to oil producing regions in the central Gulf of Mexico, meteorologists said. The region accounts for 15% of U.S. oil and 2% of natural gas production. Offshore producers have shut-in 16% of U.S. Gulf of Mexico oil and 11% of natural gas output. The numbers represent some 284,000 barrels per day (bpd) of crude and 208 million cubic feet per day of gas. Four platforms were reported as evacuated and two rigs were moved out of the storm's path, the offshore regulator said on Tuesday. The U.S. Coast Guard on Tuesday began imposing restrictions for vessel navigation at portions of the Gulf Intracoastal Waterway and some ports, including Mobile in Alabama, and Panama City, Pensacola and St. Joe in Florida, according to shipping notices. The ports of Gulfport, Pascagoula and Tombigbee remained open to vessel navigation on Tuesday, according to the Coast Guard. "For the central Gulf this is a low- to medium-risk type situation because of the eastern track of the system," said DTN meteorologist Kevin Mahoney. But he added, "this is a very rapidly developing system," with a potentially large wind field. Shell (SHEL.L) , opens new tab, the first Gulf of Mexico producer to shut in production this week, said it was restoring output at a platform that is about 200 miles (320 km) southwest of New Orleans. "With a shift in forecast track, we are beginning the process of restoring production at Stones," the oil major said. Its output at another platform further east in the Gulf, called Appomattox, continues to be curtailed, it said. Other oil producers evacuated offshore workers and scaled back operations as NHC forecasters called for the second major hurricane in two weeks to appear in the U.S. Gulf of Mexico. Besides Shell, producers BP (BP.L) , opens new tab, Chevron (CVX.N) , opens new tab, and Equinor (EQNR.OL) , opens new tab have withdrawn some offshore staff, and several have paused some oil and gas production ahead of the storm's arrival. Sign up here. https://www.reuters.com/business/energy/storm-helenes-eastward-tack-eases-pressure-offshore-us-oil-2024-09-24/

2024-09-24 18:16

Canadian dollar gains 0.7% against the greenback Touches its strongest level since Aug. 28 at 1.3447 Price of U.S. oil increases 1.4% Ten-year yield up 1.3 basis points, curve steepens TORONTO, Sept 24 (Reuters) - The Canadian dollar strengthened to nearly a four-week high against its U.S. counterpart on Tuesday as China's economic stimulus measures offset dovish guidance by Bank of Canada Governor Tiff Macklem on the prospects for further interest rate cuts. The loonie was trading 0.7% higher at 1.3450 to the U.S. dollar, or 74.35 U.S. cents, after touching its strongest level since Aug. 28 at 1.3447. "Risk appetite is rebounding across the currency markets after Chinese authorities unveiled a raft of stimulus measures designed to boost growth and reinvigorate market sentiment," Karl Schamotta, chief market strategist at Corpay, said in a note. China is a major importer of some of the commodities that Canada produces, such as oil. The price of oil rose on China's stimulus and concerns that conflict in the Middle East could hit regional supply while another hurricane threatened supply in the U.S. U.S. crude oil futures were up 1.4% to $71.33 a barrel, while gains for energy and metal mining shares helped lift Canada's main stock index, the S&P/TSX Composite, to a record high. It is reasonable to expect more interest rate cuts given the continued progress the BoC has made in bringing inflation back down to the 2% target, Macklem told a conference in Toronto, making his first remarks since data showed Canada's consumer price index hit 2% in August. Canadian government bond yields were mixed across a steeper curve. The 10-year rate rose 1.3 basis points to 2.963%, while it was trading 2 basis points further above the 2-year rate at a spread of 5.4 basis points, the largest positive gap since July 2022. Sign up here. https://www.reuters.com/markets/currencies/canadian-dollar-notches-4-week-high-china-stimulus-measures-2024-09-24/

2024-09-24 16:07

FRANKFURT, Sept 24 (Reuters) - The German economy will recover as temporary headwinds such as high inflation and interest rates fade, but the country still needs major reforms ranging from immigration to childcare, Bundesbank President Joachim Nagel said on Wednesday. Europe's largest economy is looking at a second consecutive year of economic contraction as demand for its exports sags and domestic activity is sapped by high borrowing costs. But Nagel slammed the media for their negativity on Europe's former economic powerhouse and stuck to the Bundesbank's view that the economy will recover once some of the factors holding it back, including weak demand from other European countries, fade. "The media seem to want to outdo each other with scary news about the German economy," he told an event hosted by the German association of family businesses. "What is certain is that some of these factors only have a temporary effect," he added. "We therefore assume that the German economy will slowly pick up some momentum again." Still, Nagel, who represents Germany on the European Central Bank's Governing Council, conceded that his country faced a number of structural challenges, including high fuel costs, too much red tape and a lack of skilled workers. He called for deep reforms such as putting a price on carbon emissions, centralising the financial administration, selectively attracting workers from abroad and offering better childcare so that more women can join the labour market. "The Federal Government is keeping an eye on the three economic policy areas I have just discussed," Nagel added, praising its Growth Initiative. "However, much still depends on implementation. And there is still a lot to do." Sign up here. https://www.reuters.com/markets/europe/german-economy-will-recover-still-needs-reforms-bundesbanks-nagel-says-2024-09-24/

2024-09-24 15:14

TOKYO, Sept 24 (Reuters) - Nippon Steel (5401.T) , opens new tab Vice Chairman Takahiro Mori said on Tuesday the Japanese company remains committed to talks with the United Steelworkers (USW) labour union over its bid to acquire U.S. Steel (X.N) , opens new tab. Separately, Nippon Steel said it would sell its entire stake in South Korean steelmaker Posco Holdings (005490.KS) , opens new tab, worth about $820 million based on Monday's closing price in Seoul, amid reports it is looking to offload assets ahead of the U.S. Steel takeover. Nippon Steel said in a statement to the Tokyo exchange it will sell 2.9 million Posco shares in an effort to "improve asset efficiency." Mori, the key negotiator of the $14.9 billion buyout deal, said USW President David McCall "has not seriously considered any of the proposals that we have presented" in a letter to the U.S. Steel employees. "We just need USW leadership to come to the table. I am hopeful they will do so in the very near future," Mori wrote. USW International President David McCall responded that "Nippon Steel has never made a promise it couldn’t easily undo with the stroke of a pen." "Its so-called guarantees are all conditional, allowing Nippon executives in Tokyo to change business plans at any time, leaving workers and their communities vulnerable," he added. The deal has faced opposition from high-profile Democrats and Republicans ahead of the U.S. November presidential elections, including from Democrat candidate Kamala Harris and her Republican competitor Donald Trump. Sources told Reuters last week the U.S. national security panel reviewing the deal let the companies refile their application for approval, delaying a decision on the politically sensitive merger until after the Nov. 5 presidential election. In the letter, Mori said Nippon Steel was committed to maintaining U.S. Steel's blast furnace operations for the long term and that it will not use slabs made overseas instead of slabs made in USW-represented U.S. Steel facilities. The Japanese company will honour all U.S. Steel's commitments related to the union's agreements, including in labour, pension and insurance, Mori said, adding that his company will not interfere with U.S. Steel's decisions on trade matters. The companies plan to close the deal by the end of December, pending regulatory approvals. Sign up here. https://www.reuters.com/markets/deals/nippon-steels-mori-asks-usw-leadership-come-table-2024-09-23/

2024-09-24 12:54

Mining stocks rise on China's stimulus package Visa falls as DOJ files lawsuit for alleged antitrust violations U.S.-listed Chinese firms jump after domestic stimulus plan Indexes up: Dow 0.20%; S&P 500 0.25%; Nasdaq 0.56% Sept 24 (Reuters) - The S&P 500 and Dow ended at record highs on Tuesday, shrugging off weak consumer confidence data, as mining stocks surged following China's announcement of a sweeping stimulus package. The indexes initially trimmed gains after a report from the Conference Board revealed an unexpected decline in U.S. consumer confidence in September, driven by growing concerns about the labor market's health. “Today's price action is predominantly about what happened overnight with the policy announcements from China, direct support for their equity market and pledges to cut interest rates in the future, has caused a really sharp move in international stocks in general,” said Zachary Hill, head of portfolio management at Horizon Investments in Charlotte, North Carolina. “That's feeding through into parts of the U.S. market, where you see some more China-sensitive, more cyclical industries like metals and mining materials sector outperforming.” The Dow Jones Industrial Average (.DJI) , opens new tab rose 83.57 points, or 0.20%, to 42,208.22, the S&P 500 (.SPX) , opens new tab gained 14.36 points, or 0.25%, to 5,732.93 and the Nasdaq Composite (.IXIC) , opens new tab gained 100.25 points, or 0.56%, to 18,074.52. Five of the 11 S&P 500 sectors traded higher, with material stocks (.SPLRCM) , opens new tab outperforming peers with a 1.35% rise. Metal prices got a boost after the world's second-largest economy, China, unveiled its biggest stimulus since the pandemic to pull the economy out of its deflationary funk. Copper and lithium miners rose. Freeport-McMoRan (FCX.N) , opens new tab rose 7.93%, Southern Copper (SCCO.N) , opens new tab added 7.22%, Albemarle (ALB.N) , opens new tab advanced 1.97% and Arcadium Lithium (ALTM.N) , opens new tab climbed 3.2%. U.S.-listed shares of Chinese firms such as Alibaba rose 7.88%, PDD Holdings (PDD.O) , opens new tab added 11.79% and Li Auto advanced 11.37%, tracking gains in the domestic market. Megacap stocks were mixed, with Nvidia (NVDA.O) , opens new tab gaining 3.9%, while Microsoft (MSFT.O) , opens new tab lost 1.15%. The broader technology sector (.SPLRCT) , opens new tab rose 0.79%. The Philadelphia SE Semiconductor Index (.SOX) , opens new tab was up 1.23% as chip stocks Qualcomm (QCOM.O) , opens new tab and Intel (INTC.O) , opens new tab rose 0.54% and 1.11%, respectively. Meanwhile, Federal Reserve Governor Michelle Bowman cautioned that key inflation measures remained "uncomfortably above" the Fed's 2% target, warranting caution as the Fed proceeds with cutting interest rates. Weekly jobless claims and personal consumption expenditure data remain in focus this week. Among stocks, Visa (V.N) , opens new tab lost 5.49% after the U.S. Department of Justice sued the company for alleged antitrust violations. This weighed on the financial sector (.SPSY) , opens new tab which slipped 0.92%. Advancing issues outnumbered decliners by a 1.93-to-1 ratio on the NYSE. There were 636 new highs and 43 new lows on the NYSE. The S&P 500 posted 62 new 52-week highs and no new lows while the Nasdaq Composite recorded 103 new highs and 101 new lows. Volume on U.S. exchanges was 11.42 billion shares, compared with 11.60 billion average for the full session over the last 20 trading days. Sign up here. https://www.reuters.com/markets/us/futures-rise-soft-landing-optimism-china-stimulus-2024-09-24/