2024-09-24 07:29

SYDNEY, Sept 24 (Reuters) - Saudi Aramco (2223.SE) , opens new tab is planning to raise up to $3 billion in five- and 10-year U.S. dollar-denominated sukuk, or Islamic bonds, according to two sources with direct knowledge of the matter and a term sheet reviewed by Reuters on Tuesday. The sources could not be named as the information on the deal size had not yet been made public. Asked about the deal size, Aramco referred Reuters to a stock exchange filing that said the amount was subject to market conditions. Banks will hold investor calls starting on Tuesday, according to the term sheet. Aramco, the world's top oil exporter, has long been a cash cow for Saudi Arabia, which is seeking funds to invest in new industries and wean its economy from oil under its Vision 2030 plan. In July, Aramco raised $6 billion from its first bond issuance in three years. Aramco expects to pay out $124.3 billion in dividends for 2024, most of which goes to the government, which directly owns nearly 81.5% of the company. Its sovereign wealth fund, the Public Investment Fund, owns another 16%. Saudi Arabia has been pumping around 9 million barrels per day of oil, about 25% below its capacity. Al Rajhi Capital, Citigroup, Dubai Islamic Bank, First Abu Dhabi Bank, Goldman Sachs International, HSBC, JPMorgan, KFH Capital and Standard Chartered are active bookrunners. Abu Dhabi Commercial Bank, Albilad Capital, Alinma Investment, BOC International, Emirates NBD Capital, Mizuho, MUFG, Natixis, Sharjah Islamic Bank and SMBC Nikko are passive bookrunners. Sign up here. https://www.reuters.com/business/energy/saudi-aramco-plans-two-tranche-dollar-islamic-bonds-term-sheet-says-2024-09-24/

2024-09-24 07:04

LONDON, Sept 24 (Reuters) - Over three-quarters of new renewable energy capacity added last year was cheaper than fossil fuels, showing the competitiveness of solar, wind and other sources, a report by the International Renewable Energy Agency (IRENA) showed on Tuesday. WHY IT IS IMPORTANT Countries are trying to reduce reliance on fossil fuels such as oil, natural gas and coal to cut greenhouse gas emissions and meet climate change targets. Last year's U.N. climate meeting set a goal of tripling renewable energy capacity worldwide by 2030. The target would involve increasing installed renewable energy capacity to at least 11,000 gigawatts (GW) by the end of this decade, compared to 4,209 GW in 2023. BY THE NUMBERS New renewable power capacity last year reached a record of 473 gigawatts (GW), of which 382 GW or 81% of newly-commissioned, utility-scale renewables projects had lower costs than fossil fuel alternatives, the report showed. This was despite fossil fuel prices returning to near historical cost levels following the energy crisis of 2022, it added. CONTEXT In 2023, the global weighted average cost of electricity from newly-commissioned renewables projects across most technologies fell from the year before: for solar PV by 12%, for onshore wind by 3%, for offshore wind by 7%, for concentrating solar power (CSP) by 4% and for hydropower by 7%, the report said. KEY QUOTE "Renewable power remains cost-competitive vis-à-vis fossil fuels. The virtuous cycle of long-term support policies has accelerated renewables. In return, growth has led to technology improvements and cost reductions. Prices for renewables are no excuse anymore, on the contrary," said IRENA’s director general Francesco La Camera. Sign up here. https://www.reuters.com/business/energy/record-renewables-growth-fuels-cost-competitiveness-irena-report-shows-2024-09-24/

2024-09-24 06:45

Global benchmark Brent closes at highest since Sept 2 Storm Helene seen missing most U.S. offshore oil regions OPEC rolls out outlook to 2050, with growing demand from developing world Sept 24 (Reuters) - Oil prices climbed about 2% to a three-week high on Tuesday on news of monetary stimulus from China, the world's top crude importer, and amid concerns that growing conflict in the Middle East could hit regional supply. Oil markets gave up some earlier gains as it became more clear that a hurricane threatening the U.S. Gulf Coast later this week would likely miss most offshore oil and natural gas producing regions and hit Florida. The region accounts for 15% of the country's oil and 2% of natural gas production. Brent futures rose $1.27, or 1.7%, to settle at $75.17 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.19, or 1.7%, to settle at $71.56. That was the highest close for Brent since Sept. 2. "The Chinese government's announcement of its largest stimulus package since the pandemic, combined with the sudden rise of geopolitical tension in the Middle East ... has dealt a blow to the bearish sentiment that dominated the oil markets in the past three weeks," Claudio Galimberti, global market analysis director at Rystad Energy, said in a note. China's central bank unveiled its biggest stimulus since the COVID-19 pandemic to pull the economy out of its deflationary funk and back towards the government's growth target, but analysts warned more fiscal help was vital to hit these goals. In the Middle East, a key oil-producing region, an Israeli airstrike on Beirut killed a senior Hezbollah commander as cross-border rocket attacks by both sides increased fears of a full-fledged war in the region. The strikes risk pulling Iran, a member of the Organization of the Petroleum Exporting Countries, closer to a conflict with Israel. Iran supports the Lebanese militant group. OPEC, meanwhile, raised its forecasts for world oil demand for the medium and long term in an annual outlook, citing growth led by India, Africa and the Middle East and a slower shift to electric vehicles and cleaner fuels. In the U.S., the world's biggest oil consumer and producer, several energy firms paused some production even though Tropical Storm Helene was currently expected to miss most of the producing regions in the western and central Gulf of Mexico and hit the Florida Panhandle as a major hurricane late Thursday. But some firms, like Shell(SHEL.L) , opens new tab, started the process of restoring oil production as the storm forecasts shifted away from their offshore platforms. Another factor that helped pare earlier oil price gains was news of a drop in U.S. consumer confidence by the most in three years in September amid mounting fears over the labor market. U.S. OIL INVENTORIES Weekly U.S. oil storage data is due from the American Petroleum Institute (API) trade group later on Tuesday and the U.S. Energy Information Administration (EIA) on Wednesday. Analysts projected U.S. energy firms pulled about 1.2 million barrels of crude out of storage during the week ended Sept. 20. , If correct, that would be the fifth time in six weeks that U.S. crude stocks have declined and compares with a withdrawal of 2.2 million barrels during the same week last year and an average decrease of 1.0 million barrels over the past five years (2019-2023). Sign up here. https://www.reuters.com/business/energy/oil-prices-rise-concerns-wider-middle-east-conflict-us-storm-2024-09-24/

2024-09-24 06:32

MUMBAI, Sept 24 (Reuters) - The Indian rupee's winning streak was poised to halt on Tuesday amid the usual dollar payments by importers, while forward premiums held at multi-month highs after dovish remarks by Federal Reserve officials. The rupee was at 83.6250 to the U.S. dollar at 11:56 a.m. IST, down from 83.5525 in the previous session. The rupee had managed to rally by nearly 0.5% over the last six sessions, a pace that momentum indicators suggested may have been too quick. The decline in the rupee from Monday's high of 83.43 is just due to the "normal" flows and "was expected," a currency trader at a bank said. It "is just a part of the process of the market adjusting to a new level," while the near-term direction bias "remains very well" on the upside for the rupee, he said. Amit Pabari, managing director at FX advisory firm CF Forex, concurred. Any upside moves on dollar/rupee should be seen a "prime opportunity for sellers to jump in", he said. Meanwhile, the 1-year dollar/rupee forward premium held near to the highest level since April 2023 on bets of more Fed rate cuts. CHINA STIMULUS China's broad monetary stimulus and property market support measures were the main talking points in Asia on Tuesday. Chinese equities rallied, and the offshore Chinese yuan climbed to 7.0310 to the U.S. dollar. A rally in the yuan should "obviously" support the rupee, a rates and currency proprietary trader at a bank said. "However, it is not that straightforward. A China stimulus makes it more attractive for foreigners to invest in shares there at the cost of India and other Asian countries," he explained. It was too premature to say what the exact fallout of China's stimulus on the rupee would be, he said. Sign up here. https://www.reuters.com/markets/currencies/rupee-halts-winning-streak-forward-premiums-hold-near-18-month-high-2024-09-24/

2024-09-24 06:00

China unveils biggest stimulus measures since pandemic Dollar falls to 16-month low vs yuan RBA holds rates steady, softens hawkish stance Dollar index extends decline after soft consumer confidence data NEW YORK, Sept 24 (Reuters) - China's yuan hit a 16-month high against the U.S. dollar on Tuesday, after the central bank of the world's second-largest economy revealed new stimulus measures, while the greenback extended declines against other major currencies after soft data on the consumer. Beijing's new plan includes a planned 50 basis point cut to banks' reserve requirement ratios, injecting more funds into the economy and an easing of mortgage repayments for households. The Chinese yuan strengthened 0.65% against the greenback to 7.017 per dollar after reaching 7.0156 on the session. "It hit all the things that people wanted to see - more support for the housing market, lower interest rates, reserve rate cut and that support for the stock market," said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York. "At least initially the market is giving Beijing the benefit of the doubt ... I'm not convinced that the underlying problems, the underlying challenges are really being addressed." The dollar index extended declines after economic data from the Conference Board showed U.S. consumer confidence unexpectedly fell in September to 98.7 from an upwardly revised 105.6 in August and below the 104.0 estimate of economists polled by Reuters as worries over the health of the labor market grew. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, fell 0.44%, on track for its biggest daily percentage drop in two weeks, to 100.49. The dollar had fallen for three straight weeks on expectations for a rate cut from the Federal Reserve, which delivered an upsized 50 basis point cut last week. The euro climbed 0.46% at $1.1163. Multiple Fed officials are scheduled to speak this week including Fed Chair Jerome Powell as well as Governors Lisa Cook and Adriana Kugler. Governor Michelle Bowman, the lone dissenter in last week's Fed move in calling for a 25 basis point cut, said on Tuesday that key measures of inflation remain "uncomfortably above" the Fed's 2% target, warranting caution as the Fed proceeds with its easing cycle. The Australian dollar strengthened 0.63% versus the greenback to $0.6881, touching a 14-month high of $0.6885 after the country's central bank reiterated that interest rate cuts were unlikely in the near term as it held policy steady, but softened its hawkish stance by saying monetary tightening was not discussed. Analysts at Goldman Sachs said that they consider the RBA's decision not to explicitly consider a rate cut "as a mini pivot in the dovish direction." Policy announcements are also expected from the Swiss National Bank, which is expected to cut by 25 bps, and Riksbank, which is also seen cutting by 25 bps, this week. Against the Japanese yen , the dollar weakened 0.13% to 143.42 after Bank of Japan Governor Kazuo Ueda reiterated in a speech on Tuesday the central bank can "afford to spend time" scrutinizing developments in markets and overseas economies before tightening policy further. Sterling strengthened 0.37% to $1.3395. Sign up here. https://www.reuters.com/markets/currencies/aussie-dlr-near-2024-high-before-rba-yen-drifts-ueda-awaited-2024-09-24/

2024-09-24 05:42

China's yuan strengthens Dow, S&P 500 post record closing highs 10-year Treasury yields dip NEW YORK, Sept 24 (Reuters) - A widely followed global stock index rose to a record high and copper prices hit their strongest level in 10 weeks on Tuesday after China unveiled stimulus measures to support its economy. The Dow and S&P 500 eked out record closing highs as mining stocks surged. China's yuan hit a 16-month high against the U.S. dollar, and oil prices climbed to a three-week high on the news from China, the world's top crude importer. People's Bank of China Governor Pan Gongsheng announced plans to lower borrowing costs and inject more funds into the economy, as well as to ease households' mortgage repayment burden. The announcement included a planned 50 basis point cut to banks' reserve requirement ratios. On Wall Street, copper and lithium miners rose. Freeport-McMoRan (FCX.N) , opens new tab rose 7.9%, Southern Copper (SCCO.N) , opens new tab added 7.2%, 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 7.9%, PDD Holdings (PDD.O) , opens new tab added 11.8% and Li Auto advanced 11.4%. The news from China is "feeding through into parts of the U.S. market, where you see some more China-sensitive, more cyclical industries like metals and mining materials... outperforming," said Zachary Hill, head of portfolio management at Horizon Investments in Charlotte, North Carolina. 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 rose 14.36 points, or 0.25%, to 5,732.93 and the Nasdaq Composite (.IXIC) , opens new tab rose 100.25 points, or 0.56%, to 18,074.52. The S&P 500 briefly moved lower in early trading after data showed U.S. consumer confidence unexpectedly fell in September amid mounting worries over the health of the labor market. Investors are looking for clues on the Federal Reserve's next move after the U.S. central bank began its latest easing cycle last week with a 50 basis point cut in interest rates. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab rose 4.51 points, or 0.54%, to 844.56, and hit a record high. The STOXX 600 (.STOXX) , opens new tab index rose 0.65%. In commodities, U.S. crude rose $1.19 to settle at $71.56 a barrel and Brent rose to $75.17 per barrel, up $1.27 on the day. Three-month copper on the London Metal Exchange climbed by 2.7% to $9,802 a metric ton by 1615 GMT after hitting its highest since July 15 at $9,825. China is a top metals consumer. Spot gold rose 1.15% to $2,658.69 an ounce. The Chinese yuan strengthened 0.65% against the greenback to 7.017 per dollar after reaching 7.0156 on the session. The U.S. dollar index extended declines after the consumer confidence data. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, fell 0.57% to 100.35, with the euro up 0.59% at $1.1178. Against the Japanese yen , the dollar weakened 0.31% to 143.15. U.S. Treasury yields slipped in choppy trading as U.S. data including the weak confidence numbers nudged up the possibility that the Fed could do another outsized rate cut at the November policy meeting. U.S. rate futures have priced in a 62% chance of another rate cut of 50 bps at the November meeting, up from 54% on Monday, LSEG data showed. The more standard 25-bp easing showed a 38% probability on Tuesday. In afternoon trading, the benchmark 10-year yield was slightly down at 3.733% after earlier hitting a three-week high of 3.81%. Sign up here. https://www.reuters.com/markets/global-markets-wrapup-1-2024-09-24/