2024-09-11 00:41

MOHACS, Hungary/PRAHOVO, Serbia, Sept 10 (Reuters) - The wrecks of explosives-laden Nazi ships sunk in the River Danube during World War Two have emerged near Serbia's river port town of Prahovo, after a drought in July and August that saw the river's water level drop. Four vessels dating from before 1950 have also come to light in Hungary's Danube-Drava National Park near Mohacs, where the Danube's water level stood at only 1.5 metres on Tuesday, the lingering effect of severe heat waves and persistent drought in July and August. The vessels revealed in Prahovo were among hundreds scuttled along the Danube by Nazi Germany's Black Sea fleet in 1944 as they retreated from advancing Soviet forces, destroying the ships themselves. The wrecks can hamper river traffic during low water levels. Strewn across the riverbed, some of the ships still have turrets, command bridges, broken masts and twisted hulls, while others lie mostly submerged under sand banks. Endre Sztellik, a guard at the Danube-Drava national park said of one of the ships, "we still don't know what this is exactly. What is visible and an unfortunate fact is that the wreck is diminishing as people are interested in it and parts of it are going missing." The Danube stood at 1.17 metres in Budapest on Tuesday, which compares with an all-time record low of around 0.4 metres registered in October 2018. During floods the Danube rises well above 6 metres. "Eastern Europe is experiencing critical drought conditions that are affecting crops and vegetation," the European climate service Copernicus said on its website in its latest drought report published earlier this month. Long-awaited rainfall set in on Monday, which is expected to raise Danube levels to around three metres at Mohacs by the weekend, with the river likely to submerge the shipwrecks again. The level of Poland's longest river, the Vistula, has fallen to a record low, leaving sandbanks exposed in Warsaw and water so shallow a moose was filmed walking across it in a section in the countryside. Sign up here. https://www.reuters.com/world/europe/low-danube-reveals-sunken-world-war-two-ships-serbia-hungary-2024-09-10/

2024-09-11 00:38

US core inflation rises 0.3% in August US dollar hits three-week high versus Swiss franc Dollar falls to lowest level since late December Fed funds futures lower odds of 50-basis-point cut this month NEW YORK, Sept 11 (Reuters) - The U.S. dollar was mixed overall on Wednesday in choppy trading after data showed underlying inflation in the world's largest economy rose in August, reinforcing expectations that the Federal Reserve will likely implement a smaller 25-basis-point interest rate cut option next week. The greenback posted gains against the Swiss franc, sterling, and yen, but slipped against the euro, nudging the dollar index, a measure of the U.S. unit's worth against six major currencies , 0.01% lower on the day to 101.63. Earlier in the session, the dollar came under pressure as investors raised the chances that Democrat Vice President Kamala Harris would beat Republican rival Donald Trump in the Nov. 5 U.S. presidential election in the wake of a televised debate between the two candidates on Tuesday. Data showed that the U.S. consumer price index (CPI) gained 0.2% last month, matching the advance in July. In the 12 months through August, the CPI advanced 2.5%, the smallest year-on-year rise since February 2021 and down from a 2.9% increase in July. But excluding the volatile food and energy components, the CPI climbed 0.3% in August after rising 0.2% in July. "The immediate takeaway is that this dramatically reduces the likelihood of a 50-basis-point rate cut" next week, said Ben McMillan, a principal and the chief investment officer at IDX Insights in Tampa, Florida. "That wasn't unexpected because I thought the market was pretty aggressive at pricing in a 50-basis-point rate cut in September anyway. This reaffirms what the Fed is really focused on - the jobs numbers. This makes the jobs numbers, and the revisions to those numbers, even more important." The "supercore" reading, which is core services excluding housing, rose 0.3% for the month, which Jefferies said was the "biggest sequential increase" since April. This brings the three-month annualized rate to 1.95% from 0.45% in the previous three months. This three-month figure rose as high as 4.18% in May and 8.16% in March, according to a Jefferies investor note. Given the inflation data and with the Fed more likely to cut rates by 25 basis points, the U.S. dollar will possibly rebound in September before losing ground later this year and into 2025, said Vassili Serebriakov, FX strategist at UBS in New York. "The fact that we think that the Fed will only cut 25 bps rather than 50 bps, risk sentiment looks a bit defensive and in September, we think the dollar can have a bit of a corrective bounce. Then it starts weakening again into the end of the year and then in 2025," he said. DOLLAR UP VERSUS FRANC, POUND In afternoon trading, the dollar was up 0.54% against the Swiss franc at 0.85155 franc , after hitting a three-week high of 0.8544 following the inflation report. Sterling fell 0.27% against the dollar to $1.3044 . The pound was also weighed down earlier by data showing the UK economy stagnated unexpectedly in July. The report, however, did little to shift expectations for the Bank of England to lower interest rates next week. The dollar hit the day's high of 142.55 yen following the CPI numbers, before sliding 0.16% to 142.23 . The yen got an extra boost earlier when Bank of Japan board member Junko Nakagawa reiterated that the central bank would keep raising rates if the economy and inflation justified it. The dollar earlier in the Asia session fell to 140.71 yen, its lowest level since late December. The rate futures market has currently priced in just a 13% chance of a 50-basis-point easing by the Fed at its Sept. 17-18 meeting, down from about 33% late on Tuesday, LSEG calculations showed. The probability of a 25-basis-point rate cut next week stood at 87%, the data showed. The market still factored in more than 100 basis points in cuts this year. In the political arena, Harris put Trump on the defensive in a combative debate, with attacks on abortion restrictions, the Republican former president's fitness for office and his myriad legal problems. She also received a boost from pop megastar Taylor Swift, who told her 283 million Instagram followers that she would back Harris and running mate Tim Walz in the election. Following the debate, online betting site PredictIt showed Harris' chances of winning had improved by 3 cents to 56 cents for a $1 payout, while Trump's chances dropped 5 cents to 47 cents. Investors broadly see the dollar strengthening in the event of a victory by Trump, as his proposed import tariffs might prop up the currency and higher fiscal spending could boost interest rates. FOREX - table currency bid prices 11 September 3:40 p.m. Sign up here. https://www.reuters.com/markets/currencies/yen-eyes-5-week-high-focus-turns-us-presidential-debate-inflation-2024-09-11/

2024-09-10 23:55

TOKYO, Sept 11 (Reuters) - The Japanese government is considering support measures to make it easier for companies to enter into long-term purchase contracts for liquefied natural gas to ensure a stable supply of the super-chilled fuel, NHK reported on Wednesday. The measures include financial support for securing storage tanks in Japan and abroad and creating a framework allowing companies to resell excess supplies in the market, mitigating the risk of surplus from lower-than-expected demand during the contract period, the public broadcaster reported, without citing sources. Gas-fired power generation accounts for about 30% of Japan's power mix. Japan, the world's second-biggest LNG importer, faced heightened energy security risks after Russia's invasion of Ukraine, which led to soaring spot LNG prices and subsequently increased electricity costs. To mitigate these risks, the Ministry of Economy, Trade and Industry (METI) is exploring measures to assist Japanese companies in committing to long-term LNG contracts, potentially spanning around 10 years, as LNG remains a crucial fuel source for Japan for the time being, the public broadcaster said. The METI plans to hold a meeting with energy experts on Wednesday to discuss these measures, according to NHK. The ministry also intends to stress the importance of the government outlining the necessary LNG quantities and a government-led initiative to secure LNG if needed as a contingency, NHK said. Sign up here. https://www.reuters.com/business/energy/japan-considers-company-support-measures-long-term-lng-contracts-nhk-reports-2024-09-10/

2024-09-10 22:53

Sept 10 (Reuters) - FedEx (FDX.N) , opens new tab said on Tuesday pickup and delivery services in some markets of Louisiana could be disrupted by the expected upheaval from Storm Francine, which is set to become the fourth hurricane of the Atlantic season. Customers in New Orleans and Lafayette could see their services impacted, the parcel delivery giant said, adding it would update the list of affected areas as the storm progresses. Francine was intensifying and was on track to become a hurricane, the U.S. National Hurricane Center said, prompting Louisiana residents to flee inland and oil and gas companies to shut-in Gulf of Mexico production. The storm is expected to make landfall on Wednesday near Cameron in Louisiana, with life-threatening winds, drenching rains and a storm surge. It could be a major test for the logistics industry, which has already had to grapple with several weather-related events this year. In separate updates posted on its website, FedEx also said it had resumed its international priority inbound and outbound services in Ukraine. Its international priority service provides time-definite delivery in one to three business days. International inbound and outbound delivery services had also been reinstated in Israel, the company said. A surprise attack by Palestinian group Hamas in October had prompted FedEx to suspend its services in the country. Sign up here. https://www.reuters.com/business/autos-transportation/fedex-warns-delays-some-louisiana-markets-due-storm-francine-2024-09-10/

2024-09-10 22:46

BUENOS AIRES, Sept 10 (Reuters) - Argentina's government expects investments in the country's energy sector to reach up to $15 billion in 2025 and $16.5 billion in 2026 thanks to its market deregulation push, Energy Secretary Eduardo Rodriguez Chirillo said on Tuesday. The estimated spending includes additional funds that flow from the country's RIGI investment promotion regime, which range from $2 billion to $2.5 billion per year, according to Rodriguez. Speaking at an event organized by Shell, Rodriguez argued the measures will lead to a better business climate to attract investment. "We're at record production," Rodriguez said. "These (new) rules will help shore up investments that are already in development." The government of libertarian President Javier Milei has promoted a series of reforms aimed at reducing state intervention in the economy, including a major deregulation push. The policies seek to facilitate energy exports, in addition to deregulating local prices along with offering more access to foreign currency. Rodriguez said planned energy investments are currently seen around $12.5 billion in 2025 and $14 billion in 2026. The RIGI scheme could tack on up to $2.5 billion each year, he said. Shell alone invests between $500 million to $600 million in Argentina a year. That could increase under the RIGI mechanism and when exchange restrictions are limited, country head German Burmeister said. "The RIGI is a way to attract investments that would not otherwise arrive," he told reporters, without providing a figure for how much the firm's investments could increase. Shell currently produces 50,000 barrels of oil a day in Argentina and plans to hit 70,000 barrels by the end of 2025. Thanks to increased activity at the Vaca Muerta formation - the world's second-largest shale gas reserve and fourth-largest for shale oil - Argentina will also be able to reverse a long-running energy deficit, Daniel Gonzalez, a senior energy and mining official, said. The nation's energy trade surplus is expected to reach between $4 billion and $5 billion this year, Gonzalez said at the event, while the 2025 surplus will likely double this year's level. The primary obstacle to achieving the surpluses is the country's macroeconomic situation, he added. Sign up here. https://www.reuters.com/world/americas/argentina-sees-energy-investment-reaching-15-bln-next-year-fueled-by-2024-09-10/

2024-09-10 22:44

HOUSTON, Sept 10 (Reuters) - One of the United States' largest refineries was cutting back production on Tuesday as Tropical Storm Francine was forecast to past just east of its location, said people familiar with operations at Exxon Mobil Corp's (XOM.N) , opens new tab Baton Rouge, Louisiana refinery. Exxon plans to cut production to as low as 20% of the Baton Rouge refinery's 522,500 barrel-per-day (bpd) capacity by Wednesday when Francine may roar ashore as a hurricane, the sources said. The refinery is the sixth largest in the United States. An Exxon spokesperson did not reply to a request for comment on Tuesday. Exxon and Shell Plc's (SHEL.L) , opens new tab 233,702-bpd Norco, Louisiana refinery were planning rely on "ridethrough" crews to operate the refineries during the storm's passage. At the Norco refinery, all workers but the ridethrough crew were sent home at noon CDT (1700 GMT) on Tuesday, sources familiar with Norco operations said. Shell confirmed in a statement posted on a company website that the refinery would rely on a ridethrough crew. The company plans to maintain full production during the storm. At the Baton Rouge refinery, the crew operating the refinery is scheduled to work 18-hour shifts during the storm, the Exxon sources said. Marathon Petroleum Corp (MPC.N) , opens new tab declined to discuss plans for its 597,000-bpd Garyville, Louisiana refinery, the nation's fourth-largest, during the storm. "We can say we have comprehensive plans and procedures in place to protect our people, assets, neighbors and the environment during severe weather," said Marathon spokesperson Jamal Kheiry. The large refining units that convert crude oil into fuels, petrochemicals, lube oil and plastic feedstocks are able to withstand hurricane force winds and heavy rain. However, they are most often shut during tropical storms by disruptions to control systems and electrical systems from flooding or power outages in the communities around them. Sign up here. https://www.reuters.com/business/energy/exxon-louisiana-refinery-cuts-production-ahead-storm-sources-say-2024-09-10/