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EUROPEAN MIDDAY BRIEFING - Stocks Mixed Ahead of -2-

However, according to a Bloomberg survey, OPEC+'s production continues to undershoot the amount by which the cartel is easing cuts, with production for Nigeria and Angola declining on a monthly basis, Martinsen said. "OPEC cut compliance is now at 121%, a clear indication that several OPEC countries struggle with its production capacity," he said.

Gold was flat and could consolidate ahead of the FOMC decision later this week. The precious metal looks set to consolidate around the $1,800/oz level until financial markets get through the expected Fed taper announcement and pushback in signaling when a rate increase might happen, Oanda said.

However, rapid monetary tightening cycles and unbalanced economic recoveries globally could trigger demand for gold in the coming quarters, Oanda added.

Iron-ore prices slumped as Chinese steel smelters, key consumers of the metal, have been cutting back on output. Iron-ore futures dropped 6% to $93.59 a metric ton, hovering close to their previous one-year low hit in September.

   
 
 

EMEA HEADLINES

Standard Chartered Profit Jumps 44% in Third Quarter

Standard Chartered PLC's underlying pretax profit rose 44% to $1.075 billion for the third quarter, continuing on a recovery path as its operating income returned to growth and credit impairments eased further.

The bank's operating income rose 7.0% from a year earlier to $3.765 billion, as strong business momentum more than offset a lower net interest margin.

   
 
 

BP Reports Rise in 3Q Profit; $1.25 Bln Buyback

BP PLC on Tuesday reported a rise in third-quarter profit, beating forecasts, and said that it continues to expect a decline in reported full-year upstream production.

The FTSE 100 energy group also said that it is planning an additional $1.25 billion share buyback before it announces its fourth-quarter results and that it expects upstream underlying production to be slightly higher than in 2020.

   
 
 

Maersk Raises Buyback by $5 Bln, Makes $644 Mln Acquisition to Boost Air-Freight Offering

A.P. Moeller-Maersk AS said Tuesday that current high demand, high freight rates and supply-chain disruptions will continue at least into the first quarter of 2022 as it confirmed full-year guidance and increased its share buyback program by $5 billion over the years 2024 and 2025.

Maersk also announced the acquisition of global freight forwarder Senator International to expand its air-freight offering in a deal worth $644 million. In conjunction with the deal, Maersk has three leased cargo planes and ordered two new Boeing B777 aircraft.

   
 
 

Flutter Reports Strong 3Q Revenue Growth; Earnings Hit by Sports Results

Flutter Entertainment PLC said Tuesday that revenue grew strongly in the third quarter with rapid growth for its FanDuel business in the U.S., although unfavorable sports results will hit its earnings.

The Dublin-based gambling group said quarterly revenue came to 1.44 billion pounds ($1.97 billion), up 12% from the prior year at constant currency. Average monthly players rose 13% to 7.3 million.

   
 
 

HelloFresh Shares Rise After Third Outlook Upgrade in a Year

Shares in HelloFresh SE rose Tuesday after the German meal-kit maker raised its revenue outlook for the third time this year due to strong customer growth and high order rates in the third quarter.

At 0900 GMT, HelloFresh shares traded 14% higher at EUR80.12.

   
 
 

Fresenius 3Q Net Profit Rose; Expects to Cut Up to 5,000 Jobs at Dialysis Business

Fresenius SE & Co. said Tuesday that its net profit and sales for the third quarter rose, and outlined plans to restructure its Fresenius Medical Care AG & Co. business, including cutting up to 5,000 full-time jobs.

The German healthcare company posted a quarterly net profit of 435 million euros ($504.8 million), up 2% on year. Sales climbed 5% to EUR9.32 billion.

   
 
 

Adecco 3Q Net Profit, Revenue Rose; Sees Modest Sequential Growth in 4Q

Adecco Group AG said Tuesday that net profit and revenue rose in its third quarter, while it expects modest growth in revenues in the fourth quarter.

The Swiss human-resources company posted net profit of 133 million euros ($154.4 million), up from EUR80 million a year earlier.

   
 
 

COP26 Leaders Agree to End Deforestation by 2030

GLASGOW-World leaders from more than 100 countries, including the U.S., China and Brazil, agreed to a deal aimed at ending and then reversing deforestation by 2030, committing nearly $20 billion of public and private funds to protect and restore forests.

U.K. Prime Minister Boris Johnson, during the COP26 climate summit in Scotland on Tuesday, called the pledge a landmark agreement that includes countries accounting for 85% of the world's forest land. But details about how such a deal, which isn't legally binding, would be executed and policed haven't yet been worked out.

   
 
 

At COP26, Biden Calls for More Action on Climate as Divides Widen Between Nations

GLASGOW-President Biden told world leaders at the COP26 summit here that the coming decade would be decisive in the fight against climate change.

Hours later, Indian Prime Minister Narendra Modi gave a slower-than-expected deadline for slashing his country's emissions, saying India would take as long as 2070 to reduce its net greenhouse gases to zero.

   
 
 
   
 
 

GLOBAL NEWS

Jerome Powell's Dashboard Casts Doubt on Inflation Easing Quickly

Federal Reserve Chairman Jerome Powell used the bulk of a widely anticipated speech in late August to explain why he was still confident that this year's inflation surge would prove temporary. His remarks haven't aged well.

Economic data released over the past two months have cast doubt on parts of Mr. Powell's thesis, which helps to explain why he has acknowledged less conviction that inflation will quickly return to the Fed's 2% goal as supply-chain kinks work themselves out.

   
 
 

China Binges on U.S. Gas to Manage Energy Shortage, Carbon Footprint

At the height of the trade war in 2019, China all but cut off imports of U.S. liquefied natural gas. Today, China is buying more gas from the U.S. than ever.

The turnabout is one consequence of the global energy shortage that has sent prices soaring. And it is a result of China's effort to cut carbon emissions by reducing how much coal it burns.

   
 
 

Reserve Bank of Australia Abandons Key Stimulus Tool

SYDNEY-The Reserve Bank of Australia said it would stop using yield caps and abandoned a view that its benchmark interest rate won't rise until 2024, joining other central banks that are tightening policy as inflation risks mount.

The RBA's policy decision follows a hawkish shift by the Bank of Canada, which last week ended its government-bond-purchase program and moved up the time frame for when it might first raise its benchmark interest rate from its current near-zero level. The Federal Reserve is this week likely to begin winding down its $120-billion-a-month asset-buying program with an eye toward ending those purchases by next June.

   
 
 

EPA Moves to Limit Methane Emissions From Oil and Gas Production

The U.S. Environmental Protection Agency on Tuesday will propose a broad expansion and strengthening of rules to limit methane emissions from oil and natural gas production, in what President Biden has deemed a critical initiative to limit one of the most potent greenhouse gases.

The EPA said it would for the first time propose controlling methane at existing wells nationwide, a move smaller producers have fought for years. It would put roughly one million new and existing wells under EPA methane regulation, with more stringent requirements for new wells in addition to the first-time regulations for old ones.

   
 
 

Biden Administration Targets Stablecoin Digital Currency for Banklike Oversight

WASHINGTON-The Biden administration on Monday took the first significant step to impose banklike oversight on the cryptocurrency companies involved in the issuance of stablecoins, outlining a process that could shape the future of that digital money.

A Treasury-led panel recommended that Congress impose a new regulatory framework around stablecoins-digital currencies pegged to national currencies like the U.S. dollar-and limit the issuance of such digital assets to banks. The legislative request is a tall order given both chambers of Congress are narrowly divided.

   
 
 

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This article is a text version of a Wall Street Journal newsletter published earlier today.

 

(END) Dow Jones Newswires

November 02, 2021 07:14 ET (11:14 GMT)

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