2024-09-19 12:31

Sept 19 (Reuters) - Olive Garden-owner Darden Restaurants (DRI.N) , opens new tab said on Thursday it has entered into a delivery deal with Uber Technologies (UBER.N) , opens new tab, sending its shares up about 7% in premarket trading. The partnership is set to kick off as a pilot program at some Olive Garden locations in the United States in late 2024 and expand to all 900 outlets across the country by May 2025 after a successful trial, Darden said, without giving other details. "Guests have been asking us for home delivery options and they continue to show they are willing to pay for the convenience," CEO Rick Cardenas said, adding the deal would help address customer needs without compromising on competitive advantages. Darden missed its first-quarter sales and profit estimates on Thursday, hurt by sequential decline in customer traffic amid sticky inflation. The restaurant operator, which also owns LongHorn Steakhouse, posted a 1.1% drop in same-store sales in the quarter ended Aug. 25, compared with a 5% rise a year ago, as customers cut back on dining out. The restaurant industry has been struggling with dwindling demand as inflation-weary consumers became cautious of their expenses and have been increasingly eating at home. "The significant step down in traffic during July, led to our first quarter earnings being lower than expected," said CFO Raj Vennam, as the company reiterated its annual forecasts. Same-store sales at its Olive Garden business fell 2.9%, while they fell 6% in its fine dining restaurants. Darden reported an adjusted profit of $1.75 per share for first quarter, below analysts' average estimate of $1.83 per share, according to LSEG data. The company posted quarterly net sales of $2.76 billion, compared with estimates of $2.80 billion. Sign up here. https://www.reuters.com/business/retail-consumer/olive-garden-owner-darden-partners-with-uber-delivery-shares-jump-2024-09-19/

2024-09-19 12:29

BUENOS AIRES, Sept 19 (Reuters) - Huge grains ships loading up with soy and corn at Argentina's major inland river ports around Rosario are taking on less cargo as water levels drop to near record lows due to a major drought upstream in Brazil, pushing up costs and transport times. The Parana River, which carries almost 80% of Argentina's grains and oilseeds for export, is at the second lowest level for this time of year since 1970, behind only a major decline in 2021, data from the Rosario grains exchange , opens new tab show. The drop in river levels, so soon after the last major decline, underscores how more extreme weather, linked to climate change, is hitting trade along major waterways in the resource-rich region that supplies the world with grains and metals. The low levels now are forcing the huge seagoing boats that load up at the inland river ports near Rosario to take on thousands of tons less cargo, industry insiders said. "The Parana River is really low," Guillermo Wade, manager of the Chamber of Port and Maritime Activities (CAPyM), said in comments to Reuters. "They are loading three feet and eight inches less than they could load if the river were normal, so that means approximately 15% less than what could be loaded." The latest data from the Argentine Naval Prefecture show the level of the Parana at Rosario was 0.38 meters - measured from a depth stick "zero" index rather than the riverbed - far below the normal level of around 2.5 meters at this time of year. MORE SHIPS, HIGHER COSTS Major rivers around South America, including also the Paraguay River, have been hitting record lows in recent weeks with water levels depleted by a severe drought upriver in Brazil that has hindered navigation along waterways in the Amazon. The Paraguay-Parana system is a waterway of more than 3,400 kilometers (2,113 miles) that runs through Argentina, Brazil, Uruguay, as well as landlocked Paraguay and Bolivia. Argentina is the world's top exporter of processed soy oil and meal, crushed from soybeans in huge plants alongside the Parana River. The fact huge seagoing ships can come up-river to Rosario gives the country an important competitive edge. The Rosario grains exchange said in a report that the low water levels looked unlikely to improve any time soon and this could mean dozens more ships than normal would be required in the remainder of the year to transport soy, corn and wheat. "The forecasts for the coming months are worrying as we approach peak season for wheat transportation. The persistence of these water levels could begin to generate significant losses for the agroindustry," it said. Neighboring Paraguay is the No. 3 soybean exporter and some 80% of its grains travel along waterways to seaports down-river. Less rain than normal is expected in the second half of the year due to the La Nina weather phenomenon, which brings drier, cooler conditions in Paraguay and Argentina, though it usually heralds wetter weather farther north in Brazil. In Brazil the worst drought on record has lowered the water level of rivers in the Amazon basin to historic lows, parching much of the region's vegetation and causing wildfires across South American nations, cloaking cities in clouds of smoke. Sign up here. https://www.reuters.com/markets/commodities/argentina-grains-ships-load-less-cargo-river-levels-hit-near-record-lows-2024-09-19/

2024-09-19 12:24

Sept 19 (Reuters) - U.S.-listed crypto shares jumped on Thursday after a half-percentage point interest rate cut boosted risk appetite, adding to the momentum of an industry that has already secured some big wins this year. The move could revive interest in bitcoin , the most popular cryptocurrency, which often sways the entire sector as investors chase higher returns and dump safe-havens. The currency gained 4.6% and last traded at $62,991 on Thursday. "There's over $6 trillion in money market funds, soon yielding 50 bps less," said Matt Mena, crypto research strategist at 21Shares. "This move could signal a return of liquidity, sparking a risk-on sentiment and fueling a sharp rally." MicroStrategy (MSTR.O) , opens new tab, one of bitcoin's biggest corporate backers, gained nearly 10%. Crypto exchange Coinbase Global (COIN.O) , opens new tab jumped 6.4%. Digital asset miners Riot Platforms (RIOT.O) , opens new tab, Marathon Digital (MARA.O) , opens new tab and CleanSpark (CLSK.O) , opens new tab rose 1.6%, 4% and 5.3%, respectively. "The cut is aggressive, but more important than its impact is what it signals. This could mean the end of hawkish monetary policy for some time," said Henry Robinson, co-founder of crypto mining firm Decimal Digital Currency. Exchange-traded funds tracking the price of bitcoin and peer ether received landmark regulatory approvals earlier this year, boosting investor sentiment. However, that turned choppy in recent weeks amid shifting odds in the upcoming U.S. presidential election. Republican candidate Donald Trump has positioned himself as a pro-bitcoin candidate and vowed to fire SEC Chair Gary Gensler - who has been accused of heavy-handed enforcement by the industry - "on day one." He launched a new crypto venture earlier this week and reportedly paid with bitcoin , opens new tab for burgers bought for his supporters at a bar in New York on Wednesday. But industry executives have said that the U.S. will be friendlier towards crypto regardless of who wins the election. Sign up here. https://www.reuters.com/markets/us-listed-crypto-stocks-jump-after-bumper-rate-cut-fed-2024-09-19/

2024-09-19 12:16

NEW DELHI, Sept 19 (Reuters) - Indian refiners are jointly negotiating to purchase Russian oil for next year, a government source said on Thursday, with suppliers mostly using Russian insurance for crude priced above a $60 per barrel cap. Russia is India's top oil supplier, and the world's third biggest oil importer and consumer is also Moscow's top client for seaborne oil. Private refiners in India this year signed annual deals for Russian oil supplies while state refiners are buying from spot markets. India also relies heavily on Middle Eastern producers and its refiners have annual oil imports deals with major oil producers in the Middle East. The source said discussions with Middle Eastern suppliers for term deal for next year will begin in December. Asked if the Indian companies would seek better terms from oil producers for the import deals, the source said, various agencies have brought down their global oil demand estimates. "The negotiations positions would be different from last year... In a country where demand increases and in a world where demand is decreasing, you can draw your own conclusion". Oil Minister Hardeep Singh Puri on Wednesday said India will continue to buy Russian oil from non-sanctioned entities, since prices are cheap. Russian insurers are playing a growing role facilitating the country's oil shipments to India, its biggest buyer, Reuters reported on Wednesday. By using Russian insurers, Moscow can sell the oil above a $60 per barrel price cap that the Group of Seven (G7), the European Union and Australia imposed aiming to limit Russia's oil revenue following its invasion of Ukraine. "Sometimes, even if the price is at borderline or near the price cap, then also the sellers don't want to take a risk and use Russian insurance... If the cargo is below $60 dollars then it can be covered by western insurers," the source said. Indian refiners use Emirati Dhirams and US dollars to pay for Russian oil purchase. "Russian oil which is below $60, the payment is happening in dollars," he said, adding in the past Indian refiners also used Rupees and Chinese Yuan to settle some payments. Sign up here. https://www.reuters.com/markets/commodities/indian-refiners-jointly-negotiating-2025-russian-oil-supplies-govt-source-says-2024-09-19/

2024-09-19 12:05

By Promit Mukherjee and David Ljunggren OTTAWA, Sept 19 (Reuters) - Even though the Bank of Canada takes rate decisions on a consensus basis, this does not mean governing council members all share the same view on the path for rates, deputy governor Nicolas Vincent said on Thursday. The six-member council, which includes Governor Tiff Macklem, announces interest rates eight times a year. Each decision is unanimous. "Reaching a consensus does not mean that all members of Governing Council share the same point of view on the economic outlook or the path for interest rates in the coming months," Vincent said in a speech in Sherbrooke, Quebec. "It means that members come to an agreement about the best decision to make at a particular moment in time." Vincent, one of the council's six members, said that as new data were published and fresh information came to light, differences of opinion tended to become less pronounced. Vincent's speech, on what happens behind the scenes in monetary policy decision making, was part of the central bank's efforts to be more transparent. The BoC has trimmed its key policy rate three times in a row down to 4.25% after it started an easing cycle in June. Money markets see an almost 56% chance of a 50 basis point rate cut in October and are fully pricing in another 25 basis point cut in December. The BoC has been trying hard over the few years to improve transparency and communicate its decisions more succinctly, especially as public unhappiness over rising rates and spiking inflation grew. Vincent though said communications were not always easy. "For example, at the July decision, we said downside risks to inflation were becoming increasingly important in our deliberations. Some people interpreted this to mean that we believed downside risks had strengthened," he said. "What we intended to communicate, however, was that, with the 2% target in sight, we gave increased consideration to the risk that inflation could fall below the target." (Reuters Ottawa editorial) Keywords: CANADA CENBANK/ Sign up here. https://www.reuters.com/markets/rates-bonds/bank-canada-consensus-decisions-dont-mean-all-members-agree-path-rates-2024-09-19/

2024-09-19 12:03

War premiums for Red Sea voyage more than doubled since September, sources say Houthis' attacks on vessels increase risks and costs for shipping Smaller insurers are pausing Red Sea war coverage due to heightened risks, sources say LONDON, Sept 19 (Reuters) - The cost of insuring a ship through the Red Sea has more than doubled since the start of September and some underwriters are pausing cover as the risk of attack from Yemen's Houthis on commercial vessels increases, industry sources said. The Iran-backed Houthis first launched aerial drone and missile strikes on the waterway in November. They say they are acting in solidarity with Palestinians under assault in Israel's war on Gaza. In more than 70 attacks, the Houthis have sunk two vessels, seized another and killed at least three seafarers. The industry sources, speaking on condition of anonymity, said additional war risk premiums, paid when vessels sail through the Red Sea, were quoted up to 2% of the value of vessel from 0.7% at the start of September and after the attack on the Greek operated Sounion tanker, which was on fire for weeks. "Currently, we are seeing premiums as high as 2% on vessel value for a single Red Sea transit amid fluctuating insurer appetite," said Louise Nevill, UK CEO, marine, cargo & logistics, with broker Marsh. The Houthis have said they will attack ships with links to the UK, the United States or have called at Israeli ports, although other vessels have been in the firing line, adding to dangers and also the costs involved. "A lot of the smaller insurers are no longer prepared to underwrite Red Sea war coverage," said David Smith, head of marine with insurance broker McGill and Partners. "It’s the first time I've seen underwriters just say no." Insurance industry sources said there was still some cover available but the costs were rising. "There is a lot of selection by those still willing to write ships," an underwriting source said, suggesting insurers were becoming increasingly cautious and selective. "Ships that are probable targets for attack are now struggling to find cover." The Sounion, which was struck on Aug. 21 and laden with about one million barrels of crude oil, was towed without any oil spill, the EU naval mission said on Monday. There have been no claims so far on the Sounion, with the vessel's value estimated at $80 million, three sources said. They added that the war insurance policy was provided by a consortium led by underwriter Brit. The consortium of underwriters also included Antares, Iquw, Hamilton, Westfield and Aspen. Aspen and Brit, a unit of Canadian insurer Fairfax, both declined to comment. Antares, Iquw, Hamilton and Westfield did not respond to a request for comment. Sign up here. https://www.reuters.com/world/middle-east/red-sea-insurance-costs-soar-houthi-shipping-threats-loom-sources-say-2024-09-19/