2024-09-02 10:58
LONDON/WASHINGTON, Sept 2 (Reuters) - Yemen's Iran-backed Houthi rebels attacked two crude oil tankers - the Saudi-flagged Amjad and the Panama-flagged Blue Lagoon I - in the Red Sea on Monday, the U.S. military said, calling the assaults "reckless acts of terrorism". The Houthis late on Monday claimed responsibility for targeting the Blue Lagoon with multiple missiles and drones but did not make any mention of the Saudi tanker. The U.S. Central Command said the Houthis attacked the two tankers with two ballistic missiles and a one-way attack uncrewed aerial system, hitting both vessels. Both vessels were laden with crude oil, with the Amjad carrying about two million barrels of oil, according to the U.S. military statement, which described the attacks as "reckless acts of terrorism by the Houthis." Two sources told Reuters earlier that the ships were sailing near each other when they were hit but were able to continue their voyages with no major damage assessed or any casualties. The Amjad's owner, Saudi national shipping group Bahri, did not immediately respond to a request for comment. The supertanker has a maximum capacity of 2 million barrels. The Greek manager of the Blue Lagoon I, Sea Trade Marine SA, was not immediately available for comment. The Suezmax tanker has a maximum capacity of 1 million barrels. One of the sources told Reuters the Amjad was unlikely to have been directly targeted. Saudi Arabia, the world's top oil exporter, has watched with alarm as Houthi missiles have been fired over its territory to target ships in the Red Sea. Saudi Arabia has tried to extract itself from a messy war in Yemen and a destructive feud with the Houthis' principal backer, Iran. The Houthis first launched aerial drone and missile strikes on the waterway in November. They say they are acting in solidarity with Palestinians under assault in Israel's war on Gaza that has killed tens of thousands, flattened most of the enclave and caused a humanitarian crisis following Palestinian Islamist group Hamas' deadly Oct. 7 attack. In more than 70 attacks, the Houthis have sunk two vessels, seized another and killed at least three seafarers. The Joint Maritime Information Center, run by international naval forces to track Houthi attacks, said three ballistic missile attacks hit the Blue Lagoon I tanker on Monday 70 nautical miles northwest of the northern Yemeni port of Saleef. The center "assesses that M/V BLUE LAGOON I was targeted due to other vessels within its company structure making recent port calls in Israel," it said in a report. "All crew on board are safe. The vessel sustained minimal damage but does not require assistance." Sign up here. https://www.reuters.com/world/middle-east/british-maritime-agencies-report-attacks-off-yemens-coast-2024-09-02/
2024-09-02 10:48
MANILA, Sept 2 (Reuters) - Floods and a landslide killed seven people in the Philippines on Monday as tropical storm Yagi, locally known as Enteng, dumped heavy rain on the capital Manila and nearby provinces, a disaster agency official said on Monday. In a hilly community in Antipolo east of Manila, three people were killed, including two schoolboys and a 27-year-old pregnant woman, when a landslide hit two houses, according to Relly Bernardo, the city's disaster management chief. "This is a landslide-prone area and we have been encouraging them to leave for the longest time with offers of housing in other locations," he told DWPM radio station. Bernardo said four other people died in separate incidents of drowning in the same province, Rizal, adding some homes in were submerged by floods. The Philippines typically records an average of 20 tropical storms annually, many of those typhoons, with landslides among the biggest causes of casualties. Heavy rains flooded streets and homes in parts of the country on Monday, prompting the suspension of government work and classes. Yagi brought winds of up to 85 kph (53 mph), with gusts reaching 105 kph (65 mph), as it continued to move northwest on Luzon, the Philippines' biggest and most populous island. "The water was gushing here and on the other side of our street, the water was rising close to the rooftop of houses," said Gloria Nicolas, a resident in Rizal province. "Some residents got trapped and had to escape by passing through the roofs of houses." Sign up here. https://www.reuters.com/world/asia-pacific/tropical-storm-yagi-kills-7-philippines-2024-09-02/
2024-09-02 10:07
Sept 2 (Reuters) - Sterling dropped against the euro but was still within striking distance of a one-month high, while rising versus a weakening dollar. The greenback eased but remained close to its highest level in almost two weeks as investors focused on a U.S. jobs report due at the end of this week. British factories had their strongest month in more than two years in August as demand at home offset a fall in exports, according to a survey published on Monday. Improving economic data and the cautious tone struck by Bank of England (BoE) Governor Andrew Bailey last week regarding further rate cuts has supported the pound. The euro rose 0.18% against the pound to 84.26 pence per euro, after hitting on Friday 83.98, its lowest level since July 25. Sterling was marginally up versus the dollar to $1.3132. Analysts flagged that Britain, in the last eight months, saw a more robust growth picture with the economy shaking off a shallow recession, a new government which ensured fiscal sustainability, while the Monetary Policy Committee (MPC) of the Bank of England began to dial down restrictive policy. Still, they have slight different views about the British rate outlook. "Our economists expect one more 25 basis points cut from the BoE this year at the November MPC meeting," said Emmanouil Karimalis, rate strategist at UBS. "However, a cut in September should not be entirely ruled out, as data have improved since the August MPC, and the Fed is poised to cut rates for the first time in this cycle," he added. The September MPC meeting is scheduled for September 21, one day after the Federal Reserve rate decision. "(Finance minister) Rachel Reeves' commitment to demonstrating fiscal sustainability has been seen constructively by markets, though inasmuch as union wage costs have accelerated and utility bills are rising once more," said Mark Dowding, BlueBay CIO, RBC BlueBay Asset Management. "Rising inflation creates a difficult backdrop for the Bank of England to reduce interest rates much over the months ahead," he added. Sign up here. https://www.reuters.com/markets/currencies/sterling-drops-versus-euro-focus-rate-outlook-2024-09-02/
2024-09-02 09:59
LONDON, Sept 2 (Reuters) - The U.S. Commodity Futures Trading Commission (CFTC) on Aug. 27 ordered TOTSA TotalEnergies Trading SA, a trading unit subsidiary of energy major TotalEnergies (TTEF.PA) , opens new tab, to pay a $48 million fine for alleged gasoline market manipulation. “In numerous cases over the past 20 years, the CFTC has guarded market integrity by detecting and prosecuting these benchmark-related schemes," CFTC director of enforcement Ian McGinley said in relation to the TOTSA case. Several companies have been fined by the U.S. regulator for what it says is oil and gas market malpractice. Below are some examples: TotalEnergies: The CFTC fined TOTSA $48 million for attempted market manipulation in March 2018. TOTSA was found to have held a short position in the Eurobob gasoline futures market, while flooding the physical market that underpins the derivative contract with supply it was attempting to sell below buyers' indicative bid levels. In 2015, a North American unit of Total and a trader agreed to pay $3.6 million to settle charges of attempted manipulation in the U.S. natural gas market. Vitol: In August 2024, commodity trading house Vitol agreed to pay $500,000 to settle charges with the CFTC relating to the firm exceeding position limits for certain exchange-traded oil and cattle contracts during 2022. In 2020, Vitol agreed to pay $95.7 million to settle corruption-based fraud and attempted market manipulation charges. The CFTC found that Vitol made bribes and kickback payments to employees and agents of state-owned entities in Brazil, Ecuador, and Mexico for "preferential treatment and access to trades". In 2010, Vitol said it would pay $6 million to settle charges that it failed to disclose material facts to the New York Mercantile Exchange (NYMEX) over the close relationship between Vitol's Houston unit and Vitol Capital Management Ltd, both affiliates of Vitol Group. Trafigura: In June 2024, a U.S.-based unit of commodity trading house Trafigura agreed to pay a $55 million settlement to the CFTC on charges of fraud, manipulation and impeding whistleblower communications. Houston-based Trafigura Trading LLC violated U.S. law and regulations during 2014-2019 by trading gasoline with material non-public information, manipulating an oil pricing benchmark, and requiring current and former employees to sign agreements barring them from sharing company information. Freepoint Commodities: Connecticut-based Freepoint Commodities LLC agreed in late-2023 to pay a $98 million settlement against charges connected to a scheme to misappropriate material non-public information and bribe officials in Brazil between 2012 and 2018. Glencore: The CFTC issued global commodities trading house Glencore (GLEN.L) , opens new tab with a $1.186 billion fine for "manipulative and deceptive conduct" between 2007-2018 in U.S. and global oil markets, including four U.S. physical oil benchmarks and related futures and swaps. Around the time, Glencore said it was preparing to pay up to $1.5 billion in total to settle investigations in Brazil, Britain and the United States. Equinor: Norway's state-controlled Equinor (EQNR.OL) , opens new tab, then known as Statoil, said it would pay a $4 million settlement with the CFTC in 2017 after it was found to have attempted to manipulate the Argus Far East Index, which helps to determine propane prices, in 2011. Arcadia: In 2014, now-defunct oil trading house Arcadia, and two traders, agreed to pay $13 million and accepted a three-year limit on trading U.S. benchmark crude, in a price manipulation lawsuit regarding trading activity in 2008. Panther Energy Trading: In 2013, the CFTC fined U.S. high-frequency trading outfit Panther Energy Trading LLC and its owner Michael Coscia $2.8 million for "utilising a computer algorithm that was designed to illegally place and quickly cancel bids and offers in futures contracts," including the U.S. Light Sweet Crude Oil and natural gas contracts on the Chicago Mercantile Exchange (CME). Morgan Stanley: Investment bank Morgan Stanley (MS.N) , opens new tab was fined $14 million in 2010 for delaying reporting a big block oil trade until after the market had closed. Energy Transfer Partners: In 2008, the CFTC obtained a $10 million fine from Energy Transfer Partners and three subsidiaries to settle a CFTC action relating to attempted manipulation of U.S. natural gas prices in late 2005. BP: BP (BP.L) , opens new tab agreed to pay $303 million to settle CFTC charges regarding the manipulation of U.S. propane markets. The CFTC alleged that BP cornered the TET Propane market in February 2004, and attempted a similar manouevre in April 2003. Marathon Petroleum: In 2007, Marathon Petroleum (MPC.N) , opens new tab agreed to pay a $1 million civil penalty to settle charges with the CFTC over attempted manipulation of the U.S. West Texas Intermediate (WTI) crude spot price in Nov. 2003. Enron: In 2004, Enron Corp. said it would pay a $35 million civil monetary penalty to settle charges that it manipulated in the U.S. natural gas market in 2001. Sign up here. https://www.reuters.com/markets/commodities/us-cftcs-fines-against-energy-traders-2024-09-02/
2024-09-02 08:52
LONDON, Sept 2 (Reuters) - Hedge funds continued to take bets against bank and financial stocks in the week to Friday, Goldman Sachs wrote in a note seen by Reuters on Monday, amid reported job cuts and reduced dealmaking. Financial stocks ended the week as the most net sold sector at Goldman Sachs' prime brokerage trading desk, which serves global hedge funds, the note said. Banks, insurance companies, publicly traded property trusts and capital markets firms which allow people to buy and sell bonds and stocks were all sold on a net basis for the fourth straight week. A short position bets that an asset price will decline in value, whereas a long position expects it to rise. Europe's STOXX 600 banking index (.SX7P) , opens new tab has risen 1.7% since August 26, whereas the Dow Jones banking index (.DJUSBK) , opens new tab closed Friday up over 2% for the week ahead of Monday's U.S. holiday. Financials as a stock sector were sold in six out of the last seven weeks, said the Goldman Sachs note. The selling was global, led in notional terms by North America, developing markets in Asia and Europe, the note said. While total deal values globally have risen by about a fifth, the number of mergers and acquisitions deals has fallen by 25% for the year to June 25, LSEG data shows. Hedge funds carried out modest net buying in consumer finance, said the Goldman Sachs note. Sign up here. https://www.reuters.com/business/finance/hedgeflow-hedge-funds-bet-against-banks-insurance-property-says-goldman-sachs-2024-09-02/
2024-09-02 07:24
Germany extends trusteeship over Rosneft Germany until March 10, 2025 Rosneft in talks with potential buyers of its stakes Germany expects Rosneft sale deal by year end Shell sale of Schwedt refinery stake still pending BERLIN/FRANKFURT, Sept 2 (Reuters) - The German government extended its trusteeship over the local units of Russia's Rosneft (ROSN.MM) , opens new tab until March 10 next year in anticipation of a sale of the assets to Qatar, the economy ministry said on Monday. The official announcement confirms an earlier Reuters report that such a decision had been made. The future of Rosneft's German assets, which include a 54.17% stake in the PCK Schwedt refinery, has yet to be resolved after Berlin effectively took control of them following Moscow's invasion of Ukraine. A trusteeship that puts Germany in charge of the businesses while leaving ownership with Rosneft has already been extended three times to protect Schwedt's supply and to give Rosneft time to find a buyer for its stake. Rosneft's German activities also include stakes in the MiRo and Bayernoil refineries. Russian media has put the value of Rosneft's assets in Germany at around $7 billion. "Rosneft Russia has now credibly stated that a sale of Rosneft Germany is being actively pursued and that this should be completed by the end of the year," the ministry said. It added that the sale of the assets would be the most legally secure and fastest way to enable investments in the refineries it held stakes in. Rosneft was not immediately available to comment. SALE TO QATAR A source familiar with the matter said the trusteeship extension was to allow Rosneft to negotiate a sale of its German assets to Qatar, which has a long history of investing in Germany and is the biggest single shareholder in RWE (RWEG.DE) , opens new tab, the country's biggest power producer. Due diligence between both parties is ongoing but it could take time to reach a deal, the person said. The German government last week confirmed regular exchanges had taken place with Qatar regarding investment opportunities over the last three months, without specifying whether a potential purchase of Rosneft assets was among the talking points. The PCK Schwedt refinery is co-owned by Shell (SHEL.L) , opens new tab and Eni (ENI.MI) , opens new tab. In December, Shell announced the sale of its 37.5% stake in the refinery to Britain's Prax Group. A separate source close to the matter said that the pending Prax sale seemed to be discouraging other investors from buying into the refinery. The deal is also the subject of a legal dispute before the Higher Regional Court of Duesseldorf, the source said. The court confirmed a hearing for a case regarding the Prax sale was due on Sept. 18, but declined to give details about the content. Shell, which last year said it expected the deal to close in the first half of 2024, declined to comment on the sale but said it was working with the Prax Group to complete it. The Prax Group said it will not be making any further comment until the transaction has been finalised and all regulatory processes have been completed. Under Germany's energy security law, Berlin could also opt to expropriate Rosneft Germany if no sale can be agreed, as it did with Gazprom's (GAZP.MM) , opens new tab local assets when the Russian gas company said it had withdrawn from them in 2022. Sign up here. https://www.reuters.com/business/energy/germany-extend-rosneft-trusteeship-source-2024-09-02/
