2024-09-10 22:00
OTTAWA, Sept 10 (Reuters) - Canada said on Tuesday it was considering a potential surtax on Chinese critical mineral products, batteries and parts, solar products, and semiconductors, a move which could prompt more retaliation from Beijing. Canada announced last month it would impose a 100% tariff on imports of Chinese electric vehicles and announced a 25% tariff on steel and aluminum from China. The finance ministry said in a statement it was launching a 30-day public consultation period on the potential surtax. It ran a similar exercise before the first tariff announcement. "Canadian workers, the auto sector, and related critical manufacturing supply chains currently face unfair competition from Chinese producers, who benefit from China's intentional, state-directed policy of overcapacity," it said. A Chinese embassy spokesperson described the Canadian announcement as "expanding its unilateralism and protectionism measures", adding that "China strongly opposes such measures and will continue to take resolute measures to defend its legitimate rights." China, which deplored the tariffs unveiled in August, announced on Monday the start of a one-year anti-dumping investigation into imports of rapeseed from Canada. Sign up here. https://www.reuters.com/world/americas/canada-mulls-surtax-chinese-critical-mineral-products-batteries-solar-products-2024-09-10/
2024-09-10 21:53
Sept 11 (Reuters) - A look at the day ahead in Asian markets. The slide in oil and commodity prices is garnering more attention as investors await Wednesday's U.S. consumer price inflation figures, the last major economic data point before the Federal Reserve's interest rate decision next week. The question for investors is whether this should be taken as a positive 'risk on' signal, or not? If disinflationary dynamics push U.S. inflation lower then the Fed may cut interest rates more than it had planned, weighing on Treasury yields and the dollar, and giving a boost to Asian and emerging market assets. But if they reflect weakening global demand and economic activity then investors will be far less inclined to put their money in riskier markets. Given that these developments have coincided with yet another round of gloomy growth and inflation signals from China, caution may be the order of the day. Figures on Tuesday showed that year-on-year import growth in China collapsed to just 0.5% in August, casting a cloud over brighter news that exports grew at their fastest pace in a year and a half. Brent crude oil sank 3.7% and U.S. futures lost 4.3% on Tuesday, clocking their lowest daily close since December 2021. Both are now down more than 25% on the same period a year ago, and U.S. gasoline prices are 30% cheaper than they were a year ago. This signals a significant acceleration in disinflationary dynamics that, all else equal, are bound to put downward pressure on next year's inflation readings. Could inflation be on course to undershoot the Fed's 2% target soon? It's worth remembering that the Fed in June raised its median inflation projections for this year and next to 2.8% and 2.3%, respectively. It may well be forced to revise them back down again next week. Asian markets will get the chance to react to the U.S. inflation data on Thursday. The trading day on Wednesday is shaping up to be reasonably calm and positive after the S&P 500 and Nasdaq rose for a second day, the first time either has done that since mid-August. The Asian calendar is light, with a speech by Reserve Bank of Australia assistant governor Sarah Hunter one of the few highlights. The RBA's next policy meeting is Sept. 23-24, a week after the Fed. Given the persistently hawkish tone from RBA officials, it's no surprise that money markets have the RBA down as one of the most cautious G10 central banks regarding rate cuts. Aussie swaps markets are still not fully pricing in a quarter-point rate cut this year, and the two-year U.S./Australian yield spread is the narrowest in more than two years at only 7 basis points. Here are key developments that could provide more direction to Asian markets on Wednesday:- RBA's Sarah Hunter speaks - South Korea unemployment (August) - U.S. Presidential debate (Tuesday) Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-graphic-pix-2024-09-10/
2024-09-10 21:50
Sept 10 (Reuters) - U.S. oil and gas producer APA Corp (APA.O) , opens new tab said on Tuesday it would sell non-core Permian-based drilling properties to an undisclosed buyer for about $950 million as it looks to cut down its debt pile. Consolidation in the sector hit a record $51 billion in the first quarter as energy companies rush to expand their oil and gas drilling inventories, especially in the top U.S. shale field, the Permian Basin. This has also led to companies shedding assets in an effort to streamline operations and reduce debt. Earlier this year, Occidental Petroleum (OXY.N) , opens new tab said it would sell some assets to Permian Resources (PR.N) , opens new tab for $818 million to cut down debt. In August, Reuters reported that APA was exploring a sale of the drilling assets. Proceeds from the sale will be used primarily to reduce its debt pile of $6.7 billion after the acquisition of Callon Petroleum. The Houston-based company said that it wanted to pay down $2 billion of debt it took on as part of its acquisition within the next three years. APA also sold some non-core assets in the Permian and Eagle Ford basins for nearly $700 million earlier this year. "The company's more focused unconventional Permian asset base and advantageous transport and marketing positions compares favorably with like-sized, pure-play peers in the region," said John Christmann IV, the chief executive officer of APA Corp. The deal, which is expected to close during the fourth quarter of 2024, involves properties with an estimated net production of 21,000 barrels of oil equivalent per day, of which approximately 57% is oil. APA estimates that its fourth-quarter production would be around 307,000 boepd after the transaction closes. Shares of the company were up 0.8% in after-market trading. Sign up here. https://www.reuters.com/markets/deals/oil-producer-apa-corp-sell-permian-assets-950-bln-2024-09-10/
2024-09-10 20:51
42% of crude, 52% of natural gas output in Gulf of Mexico shut Ports in Texas and Louisiana reopen Shell ramps up production at its platforms Sept 13 (Reuters) - U.S. Gulf Coast energy facilities on Friday were restarting operations as companies assessed the damage from Hurricane Francine which tore through offshore oil and gas producing areas and slammed into the Louisiana coast on Wednesday. Offshore oil and gas producers ramped up operations after halving output. Ports reopened and onshore terminals accepted oil and liquefied natural gas (LNG) tankers. Francine missed Texas and drenched Louisiana, Mississippi and Alabama with heavy rains and gusty winds that led to widespread power outages that affected operations. The U.S. Gulf of Mexico accounts for about 15% of all domestic oil production and 2% of natural gas output, according to federal data, so storm-related disruptions can boost energy prices. Francine has likely disrupted about 1.5 million barrels of U.S. oil production, which will reduce September production in the Gulf of Mexico by around 50,000 barrels per day, UBS said in a note. Yet by Friday the U.S. Coast Guard said most terminals in Louisiana including the port of News Orleans and the deepwater Louisiana Offshore Oil Port (LOOP) were back in service. Texas ports including Texas City and Lake Charles that reopened earlier this week following Francine were on Friday servicing tankers, according to vessel monitoring data by LSEG. Sign up here. https://www.reuters.com/business/energy/us-gulf-coast-energy-facilities-brace-storm-francine-2024-09-10/
2024-09-10 20:45
MAIDUGURI, Nigeria, Sept 10 (Reuters) - Floods in north Nigeria have killed more than 80% of animals in a large zoo with an array of wildlife from lions and crocodiles to buffaloes and ostriches, the facility said on Tuesday. "Some deadly animals have been washed away into our communities, like crocodiles and snakes," Sanda Kyarimi Park Zoo added in a statement on the floods in northern Borno state, urging residents to take precautions. Floods began when a dam overflowed following heavy rains, uprooting thousands of people. The disaster has affected other facilities in the state capital Maiduguri including the post office and a teaching hospital, Nigerian President Bola Tinubu's office said, telling people to evacuate worst-hit areas. "President Tinubu extends his heartfelt condolences to the government and people of the state, especially to the families that have lost their means of livelihood due to the disaster triggered by the overflow of the Alau Dam," the statement said, saying humanitarian needs would be addressed. Floods in the northeast killed at least 49 people last month, while a 2022 flood killed more than 600. Borno state, the birthplace of Boko Haram, is already grappling with a 15-year insurgency that has killed and displaced many. Sign up here. https://www.reuters.com/world/africa/floods-decimate-nigerian-zoo-wash-crocodiles-into-community-2024-09-10/
2024-09-10 20:43
NEW YORK, Sept 10 (Reuters) - Exxon CEO Darren Woods on Tuesday had warning words for activist shareholders thinking to emulate those who filed a climate-related shareholder proposal at the largest U.S. oil company. Exxon sued the investors early this year and Woods indicated the company was ready to repeat the exercise against others he said might "abuse" the proxy proposal process. “We hope we don’t have to use that action in the future. But if we find people continue to abuse the process, we’re going to hold them to the rules," Woods said. Woods spoke via video link to a meeting of the Council of Institutional Investors in New York, which represents pension funds and other institutional investors. Exxon had sued activists Follow This and Arjuna Capital in January after they filed a climate-related resolution for the company's annual meeting in May. A judge ultimately dismissed the suit in June, but only after the defendants withdrew their resolution and promised not to resubmit a similar one or help others do so. The suit raised concerns it would diminish shareholders' influence. Woods said there is a still wide door for investors to make suggestions to companies. But the proxy system, while well-intended, can be abused under regulators' current guidance, said Woods. He said established protocols, including using the courts, must be followed. "We are not opposed to the shareholder proposal process," Woods said, but added that "We will insist it is used appropriately." Woods faced skeptics in the audience including fund managers who, because of the lawsuit, had voted against Woods and other Exxon directors at the company's annual meeting in May. Nonetheless, Woods and other Exxon directors cruised to re-election with backing from big investors BlackRock (BLK.N) , opens new tab and Vanguard, recent filings showed. Some of the critical votes came from the California Public Employees' Retirement System, the largest U.S. pension fund. Its CEO Marcie Frost said via e-mail after the event that "We hope the issue is settled. CalPERS believes all shareholders have the right to be heard, whether they agree or disagree with the actions of a company’s leaders." Sanford Lewis, an attorney who has represented Arjuna and other shareholder activists, said Exxon's suit could have a lasting effect on future proxy seasons. "Small shareholders are going to think twice" about whether to file resolutions, Lewis said at the event, after Woods finished speaking. Jessica Wirth Strine, managing partner of Jasper Street, a corporate governance advisory firm, said that even though Woods took a strong stance, his overall tone was more conciliatory than at Exxon's annual meeting, where Woods made a point of criticizing the need for resolutions that appeared on its proxy. "At the annual meeting he took more shots. Today he seemed more conciliatory," she said. Before addressing the lawsuit, Woods also spoke about Exxon's climate outlook. He said that the world needs to balance its concerns for emissions with the needs of a growing world population, with billions of people still working to climb out of poverty. The idea the world needs to get rid of oil and gas misses the "true problem," he said, which is that the world needs to get rid of carbon emissions. A system to account for carbon emissions would be a major help, he said. Late on Tuesday afternoon, conference organizers said that staff and security had stopped eight protesters from entering the ballroom during Woods’ appearance. During the altercation, one staff member of the council was knocked down “as the disrupters attempted to make their way past the registration area. The police and our security personnel blocked their entry to ballroom and they were removed from the premises. Our staffer was not harmed during the incident,” organizers said via e-mail. At the conference on Monday, climate protesters had taken the stage and briefly interrupted remarks by New York City Comptroller Brad Lander. Sign up here. https://www.reuters.com/sustainability/boards-policy-regulation/exxon-ceo-woods-message-future-shareholder-activists-follow-rules-2024-09-10/
