2024-09-23 11:49

PARIS, Sept 23 (Reuters) - Shipping group CMA CGM is ready to contribute to any windfall tax on major companies that the new French government may adopt, CEO Rodolphe Saade told reporters on a call on Monday. However, Saade reiterated his opposition to a change to a tonnage tax regime for shipping firms, as called for by some French politicians, as this would penalise CMA CGM compared with competitors in Asia and elsewhere in Europe. Sign up here. https://www.reuters.com/business/shipping-giant-cma-cgm-open-french-windfall-tax-ceo-says-2024-09-23/

2024-09-23 11:48

BENGALURU, Sept 23 - The Swiss National Bank will cut its benchmark interest rate by 25 basis points on Thursday for a third straight meeting, according to a significant bulk of economists polled by Reuters, a slight majority of whom said the SNB would hold in December. The central bank raised interest rates more modestly than major peers following the pandemic and started cutting in March, also much earlier than others. Swiss inflation fell to 1.1% last month - the lowest among G10 economies, almost exactly in the middle of the SNB's preferred 0-2% range. But the franc has stayed strong, up more than 5% against the euro from the year's low in late May. Almost all economists, or 30 of 32, in the Sept. 18-23 Reuters poll predicted the central bank will reduce its main interest rate on Thursday by 25 basis points to 1.00%, in line with market pricing. One expected a 50 basis-point cut and one said no change. Policymakers are unlikely to deliver a bigger 50 basis-oint rate cut like the U.S. Federal Reserve did last week due to limited policy space, according to most analysts, as the key rate is only 1.25%. "The SNB is almost certain to cut its policy rate by 25bp to 1.00% this coming Thursday," said Karsten Junius, chief economist at J. Safra Sarasin. "We are aware that the SNB is not afraid to front-load policy changes if deemed necessary...(but) we still believe that a 50bp cut in September would display unnecessary panic." Around a 55% majority of economists, or 18 of 32, expected the SNB to hold rates in December. Sixteen said the rate will be at 1.00% by year-end, 15 said 0.75% and one said 1.25%. Poll medians showed the central bank would then cut in March to 0.75% and make no more changes until at least 2026. If the poll is correct about this week's decision, the SNB will have cut rates by a cumulative 75 basis points this year, matching what is expected from the European Central Bank. The ECB reduced its deposit rate by 25 basis points this month for a second time and is expected to deliver another in December, according to a separate survey. But the Swiss currency has broadly strengthened in recent months, partly on expectations of more reductions from the ECB. SNB Chairman Thomas Jordan, who will step down at the end of September, recently said the strength of the franc was making it difficult for Swiss industry. "Policymakers will be unhappy with the franc's recent appreciation and will use rate cuts to try and stifle its ascent. Further ahead, if the franc continues to appreciate the SNB may revert to using large FX interventions," said Adrian Prettejohn, Europe economist at Capital Economics. "We think the SNB will not want to cut the policy rate much further, if at all, in response to a strong franc as policymakers will want to reserve some space to loosen policy in case a domestic shock occurs in the future." Swiss inflation will average 1.2% this year, according to the poll, before easing to 1.0% in 2025, broadly above the government's latest projections. (Other stories from the Reuters global economic poll) Sign up here. https://www.reuters.com/business/finance/swiss-national-bank-cut-rates-by-25-bps-thursday-hold-december-2024-09-23/

2024-09-23 11:47

MOSCOW, Sept 23 (Reuters) - Russia's Nornickel opened an R&D centre in St. Petersburg on Monday to study the use of nickel-containing cathode active materials in electric batteries, marking the first stage of the Russian firm's entry into battery production. The company, a major producer of high-grade nickel, said that the launch "is expected to lay the groundwork for future projects aimed at establishing production facilities in the battery materials sector." Nornickel, which reported a 22% fall in first-half profit on Aug. 23 due to weak nickel prices, logistical difficulties, and issues related to cross-border payments, is closely looking at the EV batteries sector. Nornickel's Vice President for Innovations, Vitaly Busko, said the move to open an R&D centre also "aligns with Russia’s goals of ensuring a full-cycle battery production for electric transportation." Busko told the Russian media at the launch event that the company will decide within one year whether to open a cathode active materials production facility. He said that the company is looking for a possible location for such a facility. Nornickel's CEO, Vladimir Potanin, said in April that the company planned to develop a nickel supply chain in the EV batteries sector and create joint ventures with Chinese EV battery producers. Potanin also named Russia's nuclear power monopoly, Rosatom, as a potential partner for an EV battery venture in Russia. The company also said it is looking for ways to integrate in the global EV battery production as a way to weaken the impact of the Western sanctions against Russia on its business. In July, sources told Reuters that Nornickel is in talks with several Chinese battery companies to build a plant jointly producing nickel material from Russian semi-finished products. EV batteries are charged and discharged by the flow of lithium ions between the graphite-containing anode and the cathode. Cathodes contain nickel, which delivers high energy density, allowing the vehicle to travel further. Sign up here. https://www.reuters.com/markets/commodities/russias-nornickel-opens-ev-battery-rd-centre-2024-09-23/

2024-09-23 11:41

Sept 23 (Reuters) - Bitcoin miner Bitfarms (BITF.TO) , opens new tab said on Monday it had entered into a settlement agreement with rival and top shareholder Riot Platforms (RIOT.O) , opens new tab, under which Amy Freedman was appointed to its board. Freedman, a former investment banker who has helped companies with corporate governance matters, will replace Andrés Finkielsztain on the Bitfarms board, and was one of three nominees pushed by Riot. The two companies have been locked in a dispute since April, when Riot made an unsolicited $950 million offer to acquire the Canada-based company. Bitfarms said the bid undervalued it and adopted a poison pill to fend off any attempts at a hostile takeover. Riot has accused Bitfarms of lacking solid corporate governance. It currently owns a roughly 19.9% stake in Bitfarms. Bitfarms also said on Monday it had provided Riot with certain rights to purchase shares of the company, provided Riot holds a stake of 15% or more. Sign up here. https://www.reuters.com/technology/bitfarms-reaches-agreement-with-riot-freedman-appointed-board-2024-09-23/

2024-09-23 11:22

Sept 23 (Reuters) - Canada's main stock index breached its all-time high record, albeit marginally, for a third consecutive session on Monday as energy stocks boosted returns after an early bump in crude oil prices due to geopolitical tensions. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) , opens new tab was up 27.34 points, or 0.11%, at 23,894.71, crossing its all-time peak scaled last week after fed rate cut. Crude oil prices had a volatile day with prices first jumping up on increased Middle east tensions and hopes of strong U.S. economic growth. But it shed the gains later in the day after disappointing euro zone business activity and a signs of a weakening Chinese economy.OIL/ Brent crude futures for November were down 0.59% to $74.05 a barrel at 2013 GMT, after touching a peak of $75.17 a barrel earlier in the day. "There's still a disconnect between valuations for some of the energy stocks and expectations for where crude oil might trade in the next year," said Elvis Picardo, senior portfolio manager at iA Private Wealth. As a result, any signs that crude might go up bumps up the energy companies in TSX, he said. Canada's energy sector (.SPTTEN) , opens new tab, which accounts for around 17.5% weight in the composite index, advanced 0.4% in the day led by International Petroleum Corp (IPCO.TO) , opens new tab and Birchcliff Energy Ltd (BIR.TO) , opens new tab both of which were up over 2%. Last week's Federal Reserve's super-sized 50 basis point rate cut had boosted global markets and stock returns, with the TSX breaking its closing record since Thursday. Traders expect Fed to cut rates by another 75 basis points by the end of this year and are keeping an eye on several data prints that could provide clues on monetary policy. "Investors will digest the gains so far before the action starts again in the first or second week of next month with third quarter earnings," Picardo said. Attention will also be on the Fed's preferred inflation gauge, the core personal consumption expenditures (PCE) and Canada's gross domestic product numbers for July, both expected on Friday. The TSX is up 14.1% for the year due to optimism over the Fed's policy easing and after the Bank of Canada slashed its policy rates three times this year. The Canadian central bank is unanimously expected to cut borrowing costs further at its October meeting. Sign up here. https://www.reuters.com/markets/tsx-futures-subdued-ahead-data-heavy-week-2024-09-23/

2024-09-23 10:58

BEIJING, Sept 23 (Reuters) - China's state planner said on Monday it supports the establishment of a national resources recycling group as part of its efforts to improve recycling in various industries. Industry sources have previously said China was planning to set up a state-run company specialising in recycling across sectors including steel, base metals, plastics and chemicals. The National Development and Reform Commission did not provide a timeline or other details on how the recycling group would work during a Monday media briefing focused on China's ongoing efforts to encourage equipment upgrades and consumer goods trade-ins in order to bolster the economy. That effort is creating growing stocks of waste for recycling, Zhao Chenxin, vice chairman of the National Development and Reform Commission (NDRC), said at the briefing. China, the world's top consumer of numerous commodities, has also sought to raise the recycling rate for goods in order to ease its reliance on raw materials, many of which it needs to import in large quantities. China's current utilisation rate of commodity solid waste is at 59%, with large increases seen each year in the use of steel scrap and non-ferrous metals scrap, Zhao said. The NDRC will also work with relevant parties to accelerate the development of a logistics system and new models for trade-in and recycling, he added. Sign up here. https://www.reuters.com/world/china/china-backs-establishment-national-recycling-group-2024-09-23/