Daily Brief - 9 Feb 2024

Exxon asks Brussels traders to move to London

Exxon Mobil is making big moves by asking its Brussels-based fuel traders to pack up and head over to London. This shift is part of a larger plan to beef up their trading game, which, by the way, has been bringing in some pretty impressive profits lately. Since diving deeper into trading back in 2018, they've seen record-breaking earnings, including a cool billion in the last quarter of 2023 alone. It's all about being closer to the action and the talented folks who know their way around trading. And with some fresh incentives, they're hoping to attract even more trading talent. Meanwhile, a fond farewell is in order for Jim Nielsen, a key player in Exxon's trading world, who's decided to move on after over twenty years.

Aussie firms navigate choppy waters as interest rates peak

Australian companies are bracing themselves to report earnings against the backdrop of the highest interest rates in 12 years, a challenging environment set by the Reserve Bank of Australia. Telstra is showing resilience, aiming to boost its mobile business amidst stiff competition. Meanwhile, Commonwealth Bank of Australia, Wesfarmers Ltd., and others are expected to reveal how they're coping, with some sectors like banking facing headwinds from higher costs and squeezed margins. Over in Japan, Sony's entertainment divisions are doing well, although Rakuten struggles with its mobile sector. Other highlights include potential boosts from post-pandemic travel recovery in Thailand and strategic expansions, but overall, the high interest rates are testing firms' profitability and growth strategies.

Mexico stands firm on high rates while Peru goes for another cut

In a pivotal week for Latin America's economy, Mexico is bucking the trend by keeping its key interest rate at a soaring 11.25%, opting not to follow other regional banks in easing monetary policies just yet. Contrarily, Peru is set to reduce its own rates for the sixth consecutive time, aiming for 6.25%, as it battles to bring inflation within its target range. Mexico's cautious stance comes amidst expectations of ongoing inflation pressures, though a cut might be on the horizon in March. Peru's decision reflects a more optimistic outlook on taming inflation and kickstarting economic recovery despite recent challenges. Both countries are navigating through complex economic landscapes, with eyes keenly watching the impact of these central bank decisions.