Tag Archives: Benelux

EUROPEAN POWER – Friday prices rose due to lower German winds, solar power output | Instant News


PARIS, February 25 (Reuters) – European spot electricity prices for delivery on Friday rose on Thursday due to lower forecasts for wind and solar power generation in Germany.

* Over-the-counter baseload prices for Friday delivery in Germany rose 6.2% to 48.30 euros per megawatt hour (MWh) at 1009 GMT.

* France’s future contract added 6.2% to 48.25 euros / MWh.

* Power generation from German wind turbines is expected to fall 1.8 gigawatts (GW) day-on-day to 13.4 GW, while solar generation is expected to drop 2.2 GW to 3.6 GW, Refinitiv data show.

* “We expect wind power output to fall in the first half of the day, and increase in the latter half of tomorrow,” Refinitiv analysts said.

* French wind power supply is expected to increase by 1 GW to 3.6 GW, data show.

* Refinitiv forecast shows the average daily German wind power supply will fall to around 3 GW early next week before rising to 8 GW next Friday.

* France’s nuclear capacity reaches 75% of the total installed.

* More than half of EDF’s nuclear reactors could be operational for a decade longer than planned after maintenance work was carried out, French nuclear security watchdog ASN said on Thursday.

* French electricity demand on Friday is expected to rise 700 megawatts (MW) to 56.9 GW and fall in Germany by 390 MW to 64.2 GW, Refinitiv data show.

* Further along the curve, German Cal ’22 baseload power edged up 0.1% to 53.20 euros / MWh, following higher fuel prices.

* France 2022 contract added 0.2% to 54.25 euros / MWh.

* European CO2 allowances expiring December 2021 edged down 0.1% to 39.10 euros per tonne.

* Coal for northern European delivery in 2022 rose 0.9% to $ 69.1 a tonne, after hitting the highest level since February 1 at $ 69.20 earlier in the session. (Reporting by Forrest Crellin; Editing by Emelia Sithole-Matarise)

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UPDATE 2-Adecco Switzerland sees a steady recovery as COVID restrictions easing | Instant News


* The company sees steady improvements in early 2021

* CFO sees further recovery when restrictions are lifted

* First quarter earnings tend to be flat

* The company continues its 600 million euro share buyback (Update with share prices, analyst and executive comments)

ZURICH, February 25 (Reuters) – Adecco Group sees a steady recovery in the labor market and does not expect the increase to be thwarted by the latest COVID-19 restrictions across Europe, the Swiss employment firm said on Thursday.

Adecco said many entrepreneurs have learned to overcome social distancing rules and other restrictions, while it is hoped that measures to tackle the latest COVID-19 spike will subside.

The company, whose operations help signal the health of the broader economy, said earnings in January and February were close to returning to pre-crisis levels helped by increased hiring in fast-growing areas such as e-commerce and logistics.

“The risk of pulling back is limited,” Chief Financial Officer Coram Williams told Reuters. “We are clearly at a point where the restrictions have become the strictest and the volume is resilient. We should see further restoration and improvement but only if those restrictions are actually lifted. “

Switzerland on Wednesday said it would ease restrictions starting March 1 and Britain has laid out plans to ease the measures, although shops, restaurants and schools remain closed in many European countries.

In January and February, Adecco’s revenue decreased 2% compared to the previous year, an upward trend from a 5% decline in the fourth quarter and a 15% decline in the third quarter.

“We are a good barometer of the economy and we are close to pre-crisis levels if you look at our earnings,” Williams said.

Adecco’s new confidence echoes rivals Randstad and ManpowerGroup who both say they are seeing a steady increase in hiring.

During the fourth quarter, Adecco’s revenue fell to 5.41 billion euros ($ 6.59 billion), beating estimates of 5.27 billion euros in the consensus views of analysts compiled by the company.

Fourth-quarter net profit of 149 million euros beat estimates of 116 million euros. Shares were up 1.6% in early trading.

Williams said Adecco is expected to post revenue growth during the second quarter of this year after a 28% drop in the COVID-hit second quarter of 2020.

Earnings will likely be flat in the first quarter with “little chance of growth,” Williams said.

The company proposed a 2020 dividend of 2.50 Swiss francs, the same rate as 2019, and said it would continue the 600 million euro share buyback scheme that was halted at the start of the crisis.

$ 1 = 0.8214 euros Reported by John Revill; Edited by Michael Shields and Edmund Blair

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German Bund yields hit new 8-month highs as reflex trading hit | Instant News


* Eurozone suburban government bond yields tmsnrt.rs/2ii2Bqr

LONDON, Feb 22 (Reuters) – Germany’s benchmark 10-year bond yields climbed to a fresh eight-month high on Monday, as bets on stronger economic growth and inflation in the coming months continue to put pressure on borrowing costs in the region. euro. .

So-called reflex trading was once again led by long-dated US Treasury yields, which on Monday climbed to their highest in about a year.

That set the tone for trading in the European bond market, with the yield on German 10-year Bund rising to -0.28%, a fresh eight-month high. That was up nearly 12 basis points last week, the biggest weekly jump since June.

The sell-off has sharpened Germany’s yield curve, with the gap between 2- and 10-year bond yields widest in nearly a year, at around 39 bps.

“In our view, this is not a buy-on-dip environment in interest rates, and sharp cuts have yet to be carried out,” said analysts at Mizuho in a note.

Perhaps a more worrying sign for policymakers, real or inflation-adjusted bond yields have also risen sharply in the past week. Germany’s 10-year inflation-related yield on Monday rose to -1.28%, the highest since last October.

Analysts at UniCredit say the rise in real yields has gone too far.

“Even general optimism about the global growth prospects will not be enough to justify the current 10-year Bund real rate of return,” they said in a note.

Focus now turns to central bank officials and their thinking about soaring borrowing costs, which could threaten an economy that is slipping into recovery from the coronavirus crisis.

European Central Bank chief Christine Lagarde is expected to speak on Monday evening, while US Federal Reserve Chair Jerome Powell delivers semiannual testimony before Congress on Tuesday.

Most 10-year bond yields in the euro area rose by 2-3 basis points on the day. The yield on Italian 10-year bonds rose 2.5 bps to 0.64%, 22 bps above the record low reached earlier this month.

Europe will decide whether to extend its suspension of rules limiting its budget deficits and debt, known as the Stability and Growth Pact, in the coming weeks, meanwhile Economic Commissioner Paolo Gentiloni said on Monday.

Reporting by Dhara Ranasinghe Editing by Gareth Jones

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UPDATE 1-Draghi effect to drive up the Italian financial markets – Morgan Stanley | Instant News


(Add quote, details, background)

LONDON, Feb. 17 (Reuters) – Mario Draghi’s appointment as prime minister of Italy will provide a big boost to the country’s financial markets, Morgan Stanley said on Wednesday, predicting a big increase in the spread of closely watched sovereign bonds and double-digit performance. by its stock market.

Draghi, a former head of the European Central Bank who feasted on the Italian media as a national savior, pledged sweeping reforms to help rebuild Italy in a speech to the Senate on Wednesday ahead of a mandatory vote of confidence in his national unity government.

Morgan Stanley said the halo effect would narrow the BTP bond spread – a premium investor demand for holding Italian government bonds rather than AAA rated German debt – to 85 basis points in June from the current 90 bps spread. In the optimistic case it could drop to 55 bps before the end of the year.

For stocks, the bank expects Italy’s MSCI index to outperform MSCI EMU by 10-15% led by banks. Stocks with an overweight rating include: Unicredit, Mediobanca, ENEL, Stellantis and Prysmian.

“PM Draghi’s government is a significant positive catalyst for Italian equities, which are trading near record low valuations versus EMU,” said Morgan Stanley analysts.

The long-suffering European banking sector could do better.

Increasing perceptions around Italy could be matched by the expected economic recovery from the COVID-19 pandemic, Morgan Stanley said, adding that a performance of more than 30% was “absurd”.

The MSCI European stock index is currently trading at a discount to the World Index of All Countries excluding the United States for the first time since 2013.

“Draghi’s appointment could spark renewed interest in the region from global investors, as was the case around (Emmanuel) Macron’s election victory in France in 2017,” said Morgan Stanley.

Reporting by Marc Jones; Edited by Tom Arnold and Gareth Jones

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Germany, most other eurozone bond yields hit multi-month highs | Instant News


* Eurozone suburban government bond yields tmsnrt.rs/2ii2Bqr

LONDON, Feb 15 (Reuters) – Most eurozone bond yields rose to multi-month highs on Monday with investors betting on brighter economic prospects and rising inflation as oil prices climb to their highest in more than a year.

Ten-year bond yields in Germany, France and the Netherlands all rose to their highest levels since early September, while yields on German 30-year bonds climbed to eight-month highs.

The selloff in major bond markets has picked up in recent sessions, as the launch of the coronavirus vaccine and US fiscal stimulus fueled expectations of a strong economic recovery.

The benchmark US Treasury yield rose to the highest level since March on Friday, pushing prices lower. This sell-off, along with the rise in the price of Brent crude to highs above $ 63 a barrel weighed on eurozone debt markets on Monday.

Germany’s benchmark 10-year Bund yield rose 4 basis points to a 5-1 / 2 month high of -0.387%.

The yield on the 30-year bond, up 20 bps so far this month, is up to an eight-month high of nearly 0.13% – after trading in negative yield territory more than a week ago.

Across the euro area, yields on long-term bonds in higher-rated markets such as the Netherlands and France rose 4-5 bps points on the day.

“The reflective sentiment remains alive and kicking, albeit with opportunities for short-term consolidation in the Bunds following the latest selloff,” said Commerzbank strategist Rainer Guntermann.

With the US bond market closed for the holidays and parts of Asia closed for the Lunar New Year, trading on financial markets was generally sluggish.

Italian bonds continued to outperform their eurozone counterparts but their yields also edged up Monday, with the Italian 10-year bond yield up 2 bps on the day at 0.51% – still maintaining last week’s record low.

Mario Draghi, the former head of the European Central Bank, was sworn in as prime minister of Italy on Saturday to lead a unity government that must steer the country out of the coronavirus crisis and economic downturn.

Politics is also in focus in Spain, where separatist parties are likely to jointly win a majority of seats in Catalonia’s regional parliament. The elections are seen as a test of the strength of the regional pro-independence movement in an era now dominated by the pandemic.

Reporting by Dhara Ranasinghe; Edited by Pravin Char

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