Oil Prices Gain On Supply Disruptions
Oil prices were moving higher on Monday amid supply disruptions in Europe and optimism over a demand recovery in China.
Benchmark Brent crude futures rose half a percent to $83.19 a barrel, while WTI crude futures were up 0.6 percent at $76.75.
The upside remained capped by hawkish Fed bets after the release of strong inflation data.
Russia has halted supplies of oil to Poland via the Druzhba pipeline, the chief executive of Polish refiner PKN Orlen said on Saturday, adding that the company is effectively securing supplies and will replace it with oil from other sources.
Interestingly, the halt in supplies came a day after Poland delivered its first Leopard tanks to Ukraine.
The dollar wavered near a seven-week high today amid expectations that the Fed will raise interest rates to around 5.4 percent by the summer.
U.S. Treasury Secretary Janet Yellen told Reuters on Saturday that new U.S. data showing an unexpected jump in inflation in January signals that the fight against inflation “is not a straight line” and more work is needed.
Amid optimism over a demand recovery in China, investors now await China’s manufacturing surveys this week for further clarity on oil demand.
Viatris Inc. Q4 Earnings Summary
Below are the earnings highlights for Viatris Inc. (VTRS):
Earnings: $1.01 billion in Q4 vs. -$263.8 million in the same period last year.
EPS: $0.83 in Q4 vs. -$0.22 in the same period last year.
Revenue: $3.88 billion in Q4 vs. $4.34 billion in the same period last year.
first direct increases interest rates on two instant access accounts
first direct is increasing the interest rates on two of its instant access savings accounts. From Wednesday March 1, the group is increasing the rates on its FD Savings Account from 0.9 percent to 1.2 percent.
The rate on the FD Bonus Savings Account, excluding the bonus, is also increasing from 0.9 percent to 1.2 percent.
For its Bonus Savings Account, the 2.6 percent rate for balances up to £25,000 is increasing to 2.75 percent.
The one percent rate for balances above £25,000 is increasing to 1.6 percent.
Chris Pitt, CEO of first direct, said: “We review our rates regularly in order to make sure we are offering value to our customers. These boosted instant access rates will offer a better return for those customers that do need easy access to their savings.
“Our instant access range complements our other savings products, which include our market-leading Regular Saver Account at sevent percent. We also offer ISAs and fixed rate accounts to suit our customers, whatever their saving goals and needs.”
More to follow…
Gold Hovers Near Two-week Low
Gold prices hovered near two-week lows on Monday as hotter-than-expected U.S. inflation data on Friday fueled bets for a higher interest rate peak from the Federal Reserve.
Spot gold slipped 0.1 percent to $1,809.26 per ounce, while U.S. gold futures were little changed at $1,816.20.
The dollar hovered near a seven-week peak and bond yields remained elevated, denting bullion’s appeal.
Data on Friday showed U.S. consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased by the most in nearly two years last month amid a surge in wage gains.
The Fed’s preferred inflation gauge also accelerated, adding to markets fears the Fed will have to raise interest rates further and for an extended period.
U.S. Treasury Secretary Janet Yellen told Reuters on Saturday that new U.S. data showing an unexpected jump in inflation in January signals that the fight against inflation “is not a straight line” and more work is needed.
Investors now expect the Fed to raise interest rates to around 5.4 percent by the summer.
Speeches by several Fed officials are and the release of ISM measures of manufacturing and services could influence trading sentiment as the week progresses.
Alliant Energy Plans To Offer $500 Mln Of Convertible Senior Notes Due 2026
Alliant Energy Corp. (LNT) said it plans to offer $500 million aggregate principal amount of its convertible senior notes due 2026 in a private placement.
Alliant Energy also intends to grant to each of the initial purchasers of the convertible notes an option to purchase, within a 13-day period from, and including, the date on which the convertible notes are first issued, up to an additional $75 million aggregate principal amount of the convertible notes.
Alliant Energy said it plans to use the net proceeds from the offering of the convertible notes for general corporate purposes, which may include repayment or refinancing of debt, working capital, construction and acquisition expenditures, investments and repurchases and redemptions of securities.
LKQ Corp. To Buy Uni-Select For C$2.8 Bln Cash
LKQ Corporation (LKQ), an automobile parts provider, and Uni-Select Inc. (UNS), an automotive refinish and industrial coatings firm, announced on Monday that they have inked a deal allowing LKQ to acquire Uni-Select, for C$48 per share in cash or a total enterprise value of around C$2.8 billion.
LKQ intends to fund the transaction through a combination of cash on hand and new debt. It has secured bridge financing commitments from Bank of America and Wells Fargo.
The acquirer expects the acquisition to be accretive to its adjusted income per share in the first year, following the closure. The transaction price of C$48 per share represents a premium of 19.2 percent to Uni-Select’s closing share price on February 24, and 20.7 percent to Uni-Select’s trailing 20-day volume-weighted average price.
The deal, subject to customary conditions, including the receipt of anti-trust clearances in Canada, the U.S. and the U.K., is expected to close in the second half of 2023.
Dominick Zarcone, CEO of LKQ, said: “This acquisition further enhances LKQ’s global automotive vehicle parts distribution business. Uni-Select’s North American automotive refinish paint and mechanical parts distribution operations complement LKQ’s existing footprint and will allow us to distribute a broader array of products to our customers…”
With over 15 distribution centers and over 400 branches, Uni-Select serves more than 70,000 customers annually across the U.S., Canada, and the UK.