Economy

The robust activity in several international markets have helped oilfield services companies offset some of the declines in North America. “We remain confident in achieving our full-year EBITDA guidance midpoint,” CEO Lorenzo Simonelli said in a statement.Houston-based Baker Hughes has benefited from several liquefied natural gas projects as energy firms rush to build new LNG producing facilities betting on long-term demand for the super-cooled commodity. Revenue from its industrial and energy technology segment rose 9% to $2.95 billion, from a year earlier. Baker Hughes, which makes power generating turbines, has also inked several contracts for non-LNG projects this year in the Middle East with the likes of Saudi Aramco (TADAWUL:2222).Larger rival SLB last week said natural gas projects in Asia, the Middle East and the North Sea are expected to grow regardless of decisions on oil production curbs by the OPEC+ producers’ alliance. Baker Hughes said revenue in its bigger oilfield services and equipment segment rose 4% in international markets, helped by a 34% growth in Europe and Sub-Saharan Africa.However, the company said that oilfield services revenue declined by 6% in Middle East and Asia, a region which has seen increased drilling demand post-pandemic.North America revenue at the unit fell 9%.Total third-quarter revenue of $6.91 billion missed estimates of $7.22 billion. Baker Hughes posted an adjusted profit of 67 cents per share for the three months ended Sept. 30, compared with the average analyst expectation of 61 cents, according to data compiled by LSEG. More

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(Reuters) – A look at the day ahead in Asian markets. If the prospect of a soft landing for the U.S. economy had boosted investor sentiment and global risk appetite recently, it is giving way to a deepening sense of caution as investors grapple with spiking U.S. bond yields and a stronger dollar.It’s not that yields and the dollar are rising solely on the back of increased optimism about the U.S. growth outlook. Worries about Washington’s huge spending and deficits, and the upcoming U.S. election, are also on the rise.So much so, that the U.S. “term premium” – the extra compensation investors demand for lending to the government over the long term instead of rolling over shorter-term loans – is back. It is the highest in a year.Add to that the ongoing doubt surrounding China’s economic outlook and the effectiveness of Beijing’s raft of support measures, and Asian investors’ glass right now is looking half empty rather than half full.If Wall Street is beginning to feel a little heat from the spike in yields, Asian and emerging markets definitely are. Asian stocks are now down five of the last six sessions.The 10-year U.S. Treasury yield broke above 4.20% on Tuesday for the first time in three months, and the dollar index also climbed to highs last seen on Aug. 2.If it’s rate and yield differentials fueling the dollar’s gains, the path of least resistance is against the ultra-low yielding Japanese yen. The dollar on Tuesday rose above 151.00 yen for the first time in three months, and the yen is back to being the worst-performing main Asian currency this year.The weaker yen isn’t offering much support for Japanese equities, though. Foreigners have been buyers in recent weeks but the Nikkei is at a three-week low, suggesting domestic investors are putting their cash overseas.The Asian calendar on Wednesday is light, with only inflation from Singapore and industrial production figures from Taiwan on deck, leaving investors to focus on global market-moving drivers.They include the BRICS summit in Kazan, Russia, and IMF and World Bank annual meetings in Washington. Investors can expect headlines from several policymakers in Washington to hit the tape on Wednesday, including from European Central Bank President Christine Lagarde, Bank of England Governor Andrew Bailey, Bank of Japan Governor Kazuo Ueda and Reserve Bank of New Zealand Governor Adrian Orr.The International Monetary Fund on Tuesday published its World Economic Outlook, in which it cut its GDP forecasts for China and Japan. The change in Japan’s outlook, to 0.3% growth from 0.7%, was the biggest downgrade of all major economies, and second only to Mexico’s 0.7 percentage point fall.Here are key developments that could provide more direction to markets on Wednesday:- Singapore inflation (September)- Taiwan industrial production- BOJ Governor Ueda speaks in Washington  More

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The ECB plans to conduct a strategy review next year, and communication is set to be a key topic since the era of forward guidance is largely over and central banks are looking for better ways to signal their intentions.Some policymakers have said it is worth looking at the Fed’s dot-plot approach, where each individual policymaker makes their own policy rate projection and these are then plotted into an anonymised graph, giving the tool its name. Nagel, however, joined an already long list of policymakers arguing against the dot plot, saying it could jeopardize independence while the improvement in the bank’s signalling was not entirely clear. “I do not see a compelling case for introducing dot plots for the Eurosystem,” Nagel said in a speech at Harvard University. The argument is that once you start publishing dots, policy watchers will try to identify individual policymakers behind them and put pressure on governors to advocate their national interests over that of the 20-nation bloc.”This could potentially influence the Governing Council’s independence,” Nagel said. Instead, the ECB should refine its current signalling tools and use the upcoming review for this, Nagel argued.”One might be to enhance the communication of our existing measures of uncertainty,” Nagel said. “Another might be to develop new measures such as scenario and sensitivity analyses, as well as improved fan charts.” More

WASHINGTON (Reuters) – The International Monetary Fund on Tuesday raised its forecast for British economic growth this year, offering a small boost to finance minister Rachel Reeves who presents her first annual budget next week.The IMF said its upgrade was due to lower inflation and a cut in Bank of England interest rates though it did not revise up its outlook for 2025.The news is likely to be seized on by Conservative opponents of the new Labour Party government who dispute Reeves’ claim that they left Labour a poor economic legacy after their 14 years in power.”Growth is projected to have accelerated to 1.1% in 2024 and is expected to continue doing so to 1.5% in 2025 as falling inflation and interest rates stimulate domestic demand,” the IMF said in its quarterly global forecast update.In July, the IMF forecast Britain’s economy would grow 0.7% this year. Britain is now on track to have the joint third-fastest growth in the Group of Seven advanced economies alongside France, after being in joint fourth spot with Japan and Italy in July.The IMF’s forecast for British economic growth in 2024 is now higher than that of the country’s budget forecasters whose projections underpin government budget plans. But the IMF is less optimistic about 2025 than the Office for Budget Responsibility, limiting the upside for Reeves from higher tax revenues.Reeves welcomed the higher IMF growth forecast for 2024 and said she would press ahead with measures in her budget on Oct. 30 to shore up the public finances. “That is why the budget next week will be about fixing the foundations to deliver change, so we can protect working people, fix the NHS (National Health Service) and rebuild Britain,” she said in a statement.Reeves and Prime Minister Keir Starmer have suggested higher taxes on employers and wealthier people are likely to be among the changes announced next week. Last year Britain’s economy grew just 0.3% and suffered a shallow recession in the second half of the year, but it rebounded relatively strongly in the first six months of 2024.Inflation this year is forecast to average 2.6% – the second-highest in the G7 after the United States – before averaging 2.1% in 2025, close to the BoE’s 2% target.Inflation dropped to a three-year low of 1.7% in September and although the BoE forecasts it will pick up slightly, markets expect the central bank to cut borrowing costs again next month, after a first quarter-point rate cut to 5% in August.Adjusted for population growth, Britain’s economic performance is less impressive. The IMF estimates British GDP per head will rise by 0.6% this year and 1.1% next year – well short of Reeves’ goal to top the G7 rankings on this measure for two consecutive years. More