2024-08-27 07:08

BERLIN, Aug 27 (Reuters) - A German man caught trying to smuggle over 90 million roubles' ($982,500.00) worth of gold into Russia faces up to five years in prison, the local customs authority in Pskov said. Customs officials and FSB officers stopped the 58-year-old who was allegedly carrying 13 kilograms of gold bars in his motor home, the authority said in a Telegram post on Monday. Pskov is a city located some 20 kilometres from Russia's border with Estonia. The German foreign office had no immediate comment on the case when contacted by Reuters. A criminal case has been opened, the Pskov customs authority said. Alongside a custodial sentence, the man could also face a fine of up to 1 million roubles. The detention of Western citizens in Russia, including some German nationals recently freed as part of a multi-country prisoner swap, has become an increasingly fraught topic against the backdrop of Russia's war in Ukraine. ($1 = 91.6000 roubles) Sign up here. https://www.reuters.com/world/europe/german-man-faces-russian-prison-term-alleged-gold-smuggling-2024-08-27/

2024-08-27 06:43

NEW YORK, Aug 27 (Reuters) - Oil prices fell about 2% on Tuesday on worries that slower economic growth in the U.S. and China could reduce demand for energy, especially after prices surged over 7% during the prior three days. Brent futures fell $1.88, or 2.3%, to settle at $79.55 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $1.89, or 2.4%, to settle at $75.53. "Today’s price pullback, although significant, still fell within range of a normal and deserved correction following a substantial three-day $6-per-barrel advance," analysts at energy advisory firm Ritterbusch and Associates said in a note. Technical traders noted that prices of both contracts pulled back after failing to break above resistance around the 200-day moving averages on Monday. With U.S. gasoline futures still trading near a six-month low, the 321-crack spread , which measures refining profit margins, held near its lowest level since February 2021 for a second day in a row. "If the refiner is not making money on gasoline and distillate, then the refiner is going to buy less crude oil to make gasoline and distillate. The barrels he does not buy will get sent to storage," Bob Yawger, director of energy futures at Mizuho, said in a note. In the U.S., consumer confidence rose to a six-month high in August, but Americans are becoming more anxious about the labor market after the unemployment rate jumped to near a three-year high of 4.3% last month. That increase in unemployment helped boost expectations the U.S. Federal Reserve will cut interest rates next month. Lower rates can boost economic growth and demand for oil. UBS Global Wealth Management sees a 25% chance of a U.S, recession, up from 20% previously, citing soft numbers in the July labor report. In Germany, meanwhile, the economy shrank in the second quarter. Goldman Sachs cut its average 2025 Brent forecast and range for prices by $5 per barrel, citing slower demand in China. The bank reduced its range for Brent prices to $70-$85 a barrel, and 2025 average Brent forecast to $77 per barrel from $82. Worries about the economy in the U.S. and China offset bullish news out of Libya and the Middle East that could reduce supplies. Prices rose strongly over the past few days due to the potential shutdown of Libya's oil fields that could curtail the OPEC member's roughly 1.2 million-barrel per day of output (some of which was already reduced), and other tensions in the Middle East following counterattacks between Israel and the Iran-backed Hezbollah group in Lebanon in recent days. "The sense of dread in the Middle East seems to have dissipated after Israel thwarted a large-scale Hezbollah missile attack. ... It is interesting to note that Iran did not step in to help defend ... Hezbollah," Yawger at Mizuho said. U.S. OIL INVENTORIES Weekly U.S. oil storage data is due from the American Petroleum Institute trade group on Tuesday and the U.S. Energy Information Administration on Wednesday. That data is expected to show that energy firms pulled crude from U.S. storage last week for the eighth time in nine weeks. Analysts, however, projected last week's crude storage decline was just 2.3 million barrels during the week ended Aug. 23. , If correct, that withdrawal would be smaller than the decrease of 10.6 million barrels during the same week last year and an average decrease of 6.3 million barrels over the past five years (2019-2023). Sign up here. https://www.reuters.com/markets/commodities/oil-prices-pause-after-surging-libyan-outages-middle-east-tensions-2024-08-27/

2024-08-27 06:35

Markets await PCE data due on Friday Dollar down 0.3% against its rivals Odds of 25 bp US rate cut in Sept at 63.5% -CME FedWatch Aug 27 (Reuters) - Gold prices rose on Tuesday driven by a weaker dollar, with investors awaiting inflation data that might provide insights on the scale of an expected interest rate cut by the Federal Reserve next month. Spot gold rose 0.3% to $2,524.94 per ounce, as of 2:57 p.m. ET (1857 GMT), shy of the record high of $2,531.60 hit last week. U.S. gold futures settled 0.1% lower to $2,552.90. The dollar index fell 0.3%, making gold more attractive for other currency holders . "Biggest thing right now is the drop in the U.S. dollar that we've seen over the last hour has given gold a little bit of a push here, and you're seeing a lot of buying on this dip," said Bob Haberkorn, senior market strategist at RJO Futures. Investors now await the release of the Personal Consumption Expenditures (PCE) data, a key inflation report and the Fed's preferred inflation gauge, scheduled for Friday. A surprise of hotter-than-expected inflation data could slightly influence the Fed's policy, but its assured they will cut interest rates in September and possibly again this year, Jim Wyckoff, senior market analyst at Kitco Metals, said. Traders see a 63.5% chance of a 25-basis-point (bp) rate cut in September and about a 36.5% probability of a bigger 50-bp reduction, according to the CME FedWatch tool , opens new tab. Bullion remains above the $2,500 per-ounce psychological level and is heading for its best year since 2020, driven by investor optimism about upcoming U.S. rate cuts and lingering concerns about the Middle East conflict. "Much of the positive news for gold may therefore already have been priced in. We feel vindicated in our view that gold has no significant upside potential for the time being," Commerzbank wrote in a note. "We see more room for the three other precious metals that have not caught up with gold in recent weeks" Among other metals, spot silver rose 0.6% to $30.07 per ounce, while platinum fell 0.1% $960.90 and palladium gained 1.8% to $975.58. Sign up here. https://www.reuters.com/markets/commodities/gold-eases-firmer-dollar-outweighs-support-rate-cut-bets-2024-08-27/

2024-08-27 06:16

Some residents without water for two months Rainfall well below average for four years Supply from tankers can cost 300 euros per month CALTANISSETTA, Italy, Aug 27 (Reuters) - A drought on the Italian island of Sicily has become so severe that many residents of the city of Caltanissetta have been without running water for two months, leading to handsome profits for unauthorised private sellers. In a situation more readily associated with a developing country than an advanced European economy, thousands of Sicilians are getting their water from individuals and groups who distribute it from self-operated tanker trucks at inflated prices. After four years of rainfall well below the historical average, the Italian government declared a state of emergency in May to try to better manage resources until the autumn rainy season, but since then things have only got worse. Water is rationed in dozens of central Sicilian towns, leaving citizens to rely on supplies from tankers that can cost families and businesses an average of 300 euros ($333) per month. "Every 15 or 20 days I have to call water trucks to fill the tanks I have at home," said Alberto Micciche, who lives in the Poggio Fiorito district on the outskirts of Caltanissetta. The cost of an 8,000-litre truckload has doubled from a year ago to about 100 euros, Micciche said. He then has the additional cost of electricity to pump the water from the tanks to his kitchen or bathroom. "Just turning on a tap is expensive," he said. In the rest of Caltanissetta the authorities ensure regular water supplies for just a few hours per week or every two weeks, depending on the neighbourhood. Chronic water shortages are nothing new to Sicilians, many of whom have storage tanks on their roofs or underground to face periods of scarcity, but these are proving insufficient as droughts become longer and more severe. 'LIKE BEING BLACKMAILED' Businesses requiring a constant supply of drinking water, such as restaurants, are exasperated as demand outstrips supply and prices soar. "Many tanker owners know we are in trouble and are taking advantage of the situation, it's like being blackmailed," said Michele Tornatore, who owns a restaurant called 'Sale e Pepe' (salt and pepper) in Caltanissetta. "If the tankers can get water, then why is there no water?" he said. Officially, water is considered a public good and cannot be sold by individuals, who can have private wells strictly for personal use. Only authorized private tankers can distribute water they have drawn from public sources, charging a transportation fee. To do so, they must themselves pay a tariff to the local official water company. However, the rules are routinely flouted, with potential risks to public health. Many tankers are not registered and operate without oversight or regulation, delivering water from uncontrolled sources and uncertain quality. Authorities in several Sicilian cities have fined people thousands of euros this year for unauthorised distribution and the selling of contaminated water. Salvatore Cocina, the director of Sicily's civil protection department, said the island was seeking new water sources and repairing abandoned wells, but the situation was so critical that in exceptional cases city mayors should use their powers to temporarily seize private wells. "As in the case of the COVID-19 emergency, everyone will have to do their part," he told Reuters. Oscar Aiello, a member of Caltanissetta's city council, is using the carrot rather than the stick by trying to persuade well owners to share their precious water voluntarily. He posted on Facebook this month that their generosity "would be rewarded". ($1 = 0.8998 euros) Sign up here. https://www.reuters.com/world/europe/water-profiteers-thrive-sicily-drought-intensifies-2024-08-27/

2024-08-27 06:07

BERLIN, Aug 27 (Reuters) - German consumer sentiment is set to tumble going into September as slightly rising unemployment, job cuts and insolvency's drive down income expectations, pushing back hopes of a stable economic recovery, a survey showed on Tuesday. The consumer sentiment index, published by GfK and the Nuremberg Institute for Market Decisions (NIM), fell to -22.0 points going into September from a slightly revised -18.6 the month prior and below a forecast for -18.2. A tumble in income expectations brought down overall sentiment, falling to 3.5 points from 19.7, as an increase in purchasing power felt by many households was not enough to compensate for their rising labour market uncertainty. The recovery seen in August was only a blip due to the European Championship, said NIM consumer analyst Rolf Buerkl. "Slightly rising unemployment figures, an increase in company insolvencies and staff reduction plans at various companies in Germany are causing a number of employees to worry about their jobs," said Buerkl, pushing back hopes for a sustainable economic recovery driven by private consumption. Unemployment rose more sharply than usual at the start of summer break, while economic institutes have predicted a rise in corporate insolvencies. There have also been a string of recent job cuts announced at firms such as Deutsche Bahn, Bayer and ZF Friedrichshafen. NOTE - The survey period was from Aug. 1-12, 2024. The consumer climate indicator forecasts the progress of real private consumption in the following month. An indicator reading above zero signals year-on-year growth in private consumption. A value below zero indicates a drop compared with the same period a year earlier. According to GfK, a one-point change in the indicator corresponds to a year-on-year change of 0.1% in private consumption. The "willingness to buy" indicator represents the balance between positive and negative responses to the question: "Do you think now is a good time to buy major items?" The income expectations sub-index reflects expectations about the development of household finances in the coming 12 months. The additional business cycle expectations index reflects respondents' assessment of the general economic situation over the next 12 months. ) Sign up here. https://www.reuters.com/markets/europe/job-concerns-weigh-german-consumer-sentiment-september-finds-gfk-2024-08-27/

2024-08-27 06:05

LITTLETON, Colorado, Aug 27 (Reuters) - Power generators in New Zealand have lifted output from fossil fuels to the highest in three years so far in 2024, as they struggle to offset the largest year-over-year drop in generation from hydro dams in roughly a decade. Total fossil fuel-fired electricity generation from January through July was 4.36 terawatt hours (TWh), according to energy think tank Ember. That total was 1.75 TWh or 67% higher than during the same months in 2023, and nearly matched the 1.86 TWh drop in generation from the country's hydro dams during the same period. Hydro power is New Zealand's main source of electricity generation, and normally accounts for around 58% of the country's annual electricity supplies. However, hydro's share of total generation dropped to just 48.6% in July - the lowest monthly reading in at least a decade - as sustained drought has curbed hydro production and forced power generators to lift output from other sources. PRICE PAIN Tight power supplies have also triggered a surge in wholesale power prices, which scaled all-time highs earlier this month and are up over 180% since the start of 2024. New Zealand's power prices are also more than double those in neighbour Australia, and mean New Zealand's homes and businesses pay some of the highest energy bills in the region. In an attempt to alleviate potential power shortages and reduce price pressure, New Zealand's government has reversed a ban on offshore oil and gas exploration and has pledged to fast-track approvals for liquefied natural gas (LNG) imports. However, those measures may take years to materially impact gas supplies to power producers, so power suppliers will likely continue to face tight supplies of generation fuels for the remainder of 2024 at least. RENEWABLE GROWTH The quickest possible path to a sustained recovery in power generation levels would be if there was a change to the region's weather systems which triggered more rainfall. An El Nino weather pattern over the Indian and Pacific oceans has caused drier than normal conditions across much of Australia and New Zealand so far this year, resulting in New Zealand's drought readings. But there is a 60%-70% chance of a La Nina pattern forming during the latter months of the year, according to the New Zealand National Institute of Water and Atmospheric Research (NIWA), which could bring more rains across Oceania. Any sustained rebound in rainfall would result in a commensurate rise in hydro generation, and higher overall electricity output. Further growth to New Zealand's solar generation sector is another path to higher clean electricity output. Installed solar capacity as of the end of July was 455 megawatts, according to the New Zealand electricity authority EMI. That total is up from 295 MW in July 2023, and so marks a more than 50% increase in generation capacity within a year. Installation data also indicates that roughly 40 MW of new capacity has been installed since the end of last summer, and so stands to make a notable impact on generation totals during the upcoming southern hemisphere summer when solar output peaks. Roughly 44 MW of total installed solar capacity has battery storage, and so is capable of discharging that power into the national grid system even after the sun sets. In combination, that higher solar capacity footprint alongside more regular rainfall could help New Zealand's power firms boost overall supplies from the current stunted generation levels. But New Zealand's total electricity demand also looks set to climb towards the end of the year due to greater demand for cooling systems during the summer, and so may keep pressure on the country's power network even if overall supplies mount a rebound. In that case, power producers will likely continue to deploy growing volumes of fossil fuels within the generation mix despite ongoing efforts to reduce overall power sector emissions. Sign up here. https://www.reuters.com/business/energy/new-zealand-cranks-fossil-power-output-hydro-squeeze-drags-maguire-2024-08-27/