2024-08-26 10:16
Aug 26 (Reuters) - Finland-based engine manufacturer Wartsila (WRT1V.HE) , opens new tab has signed a contract with Norwegian shipowner Eidesvik to make one of its platform supply vessels (PSV) capable of running on ammonia fuel, the company said in a statement on Monday. The Viking Energy will be the world's first ammonia-fuelled in-service PSV, said Wartsila, which will be supplying the equipment necessary to convert the vessel. Ammonia is one of several alternative fuels being explored by shippers in order to reduce carbon emissions. The Viking Energy is chartered by Norway's Equinor (EQNR.OL) , opens new tab, which is also financing the conversion. The ship will be converted in early 2026 and is expected to start operating on ammonia by the end of the first half of the year. Wartsila told Reuters previously that it expects to deliver its first ammonia-fuelled engine on a new vessel in early 2025, with more widespread sales expected in the 2030s. The company launched its first ammonia four-stroke engine for orders in the fourth quarter of 2023. The technology can help cut greenhouse gas emissions by more than 70% compared to similar diesel-based solutions, it added. Sign up here. https://www.reuters.com/sustainability/climate-energy/worlds-first-ammonia-fuelled-psv-ship-operate-2026-says-wartsila-2024-08-26/
2024-08-26 10:02
A look at the day ahead in U.S. and global markets by Dhara Ranasinghe. Not for the first time, financial markets are reminded why it's never a good idea to get too far ahead. So, while Federal Reserve chief Jerome Powell's much-awaited Jackson Hole speech on Friday fueled the rate-cut optimism that has aided stocks' recovery from the early-August rout, the latest Middle East news highlights the need for caution. Hezbollah launched hundreds of rockets and drones at Israel early on Sunday, as Israel's military said it struck Lebanon with around 100 jets to thwart a larger attack, in one of the biggest clashes in more than 10 months of border warfare. Any major spillover in the fighting, which began in parallel with the war in Gaza almost a year ago, risks morphing into a regional conflagration drawing in Hezbollah's backer Iran and Israel's main ally the United States. Iran's foreign minister was reported saying the country does not seek to increase Middle East tensions. Still, a rise of more than 1% in oil prices suggests some unease among investors that regional oil supplies could face disruption. A full read out of the mood music is difficult with London markets closed for a public holiday. Still, European shares (.STOXX) , opens new tab are flat, as are U.S. stock futures , , while Japan's blue-chip Nikkei closed the Asia session down almost 0.7% (.N225) , opens new tab. JACKSON HOLE The more hesitant tone in world markets follows a fresh surge in optimism that a U.S. rate cutting cycle is likely to begin in September. In highly anticipated comments before the Jackson Hole Economic Symposium, Fed boss Powell said "the time has come" to lower the Fed funds target rate, and "the upside risks of inflation have diminished." For sure, the data-dependent Fed will have a raft of economic indicators to consider ahead of its September meeting, including this week's revised second-quarter GDP and the broad-ranging Personal Consumption Expenditures (PCE) report, which includes the Fed's preferred inflation yardstick, the PCE price index. But these would have to deliver major surprises to shake the market's view that a rate decrease -- of at least 25 basis points -- is coming. Also speaking at Jackson Hole, European Central Bank chief economist Philip Lane struck a more cautious note at the weekend, saying the central bank was making "good progress" in cutting euro zone inflation back to its 2% target but success is not yet assured. All this has left the dollar languishing at three-week lows versus the yen . The euro and British pound were a tad lower on the day but holding near multi-month peaks hit against the greenback on Friday , . Key developments that should provide more direction to U.S. markets later on Monday: * German August Ifo index falls in August. * U.S. July durable goods due out. Sign up here. https://www.reuters.com/markets/us/global-markets-view-usa-2024-08-26/
2024-08-26 08:53
MUMBAI, Aug 26 (Reuters) - An expected U.S. interest rate cut next month is unlikely to help the overvalued Indian rupee, even as its emerging market peers gain, bankers said. The rupee was nearly flat on Monday after Federal Reserve Chair Jerome Powell on Friday endorsed an imminent start to rate cuts. The move was in line with the rupee's recent underperformance as the currency has failed to gain from the dollar's broad slump. The Indian currency has weakened slightly this month, despite a more than 3% drop in the dollar index (.DXY) , opens new tab. Meanwhile, peers Brazilian real, Thai baht, Indonesian rupiah and Malaysian ringgit have climbed about 5%. India's central bank will likely welcome the underperformance as the rupee's real effective exchange rate (REER) - a measure of its competitiveness - rose to a near 7-year high last month. The rupee's 40-currency REER was at 107.3 in July, signaling that the rupee was overvalued by about 7%, according to the Reserve Bank of India's latest monthly bulletin. The overvaluation means the Reserve Bank of India will likely prevent a large appreciation in the rupee's exchange rate. "Despite broader USD weakness, the Reserve Bank of India has been keeping the currency stable. In our view, this provides an opportunity for the REER to come down," Akshay Kumar, head of global markets at BNP Paribas India, said. "From a policymaker's perspective, the higher (REER) reading would be a risk to India's export competitiveness," private lender HDFC Bank said in a note. India's merchandise trade deficit jumped to a 9-month peak in July, hit by sluggish exports. The rupee has declined 0.7% this year and was quoted at 83.88 to the U.S. dollar at 2:00 p.m. IST. There is "little chance" of the rupee rising past 83.50, a senior trader at a public sector bank said. The RBI had bought dollars near that level in July and was likely to do so again, he said. Analysts have retained their negative outlook on the rupee even as bullish bets on most Asian currencies rose in August, according to a Reuters poll. Sign up here. https://www.reuters.com/markets/currencies/indian-rupee-likely-miss-fed-pivot-fueled-emerging-market-rally-2024-08-26/
2024-08-26 06:41
Prosecutors have opened probe over manslaughter, shipwreck British-flagged Bayesian had 22 people on board Seven people died, including Lynch and daughter Hannah Investigation will take time, chief prosecutor says PALERMO, Aug 26 (Reuters) - Italian prosecutors have placed under investigation the captain of the superyacht that sank off Sicily last week in a storm, killing British tech magnate Mike Lynch and six other people, one of the captain's lawyers said on Monday. James Cutfield, a 51-year old New Zealand national, is being investigated for manslaughter and shipwreck, a judicial source said. Speaking to Reuters, lawyer Giovanni Rizzuti said Cutfield would next be questioned by prosecutors on Tuesday, and could exercise his right to remain silent. The lawyer added that other crew members were questioned on Monday. Being placed under investigation in Italy does not imply guilt and does not mean formal charges will necessarily follow. It is still unclear whether other crew members or other people will also be put under investigation. The British-flagged Bayesian, a 56-metre-long (184-foot) yacht, was carrying 22 people when it capsized and sank on Aug. 19 within minutes of being hit by a pre-dawn storm while anchored off northern Sicily. Fifteen people survived, including nine out of the 10 crew members and Lynch's wife, whose company owned the Bayesian. Lynch's 18-year-old daughter, Hannah, was one of the six passengers who died, out of a total of 12. Prosecutors said their investigation would take time, and would require the wreck to be salvaged from the sea. The Bayesian is currently lying on its right side, at a depth of around 50 metres (54.68 yards). "It is likely that the crimes of culpable shipwreck and manslaughter were committed, it is a question of who should be blamed for them," the chief prosecutor handling the case, Ambrogio Cartosio, said on Saturday. Maritime law gives a captain full responsibility for the ship, crew, and all on board. Cutfield and his eight surviving crew members have made no public comment yet on the disaster. "The Bayesian was built to go to sea in any weather", Franco Romani, a nautical architect who was part of the team that designed it, told daily La Stampa in an interview published on Monday. He said the yacht could have taken on water from a side hatch that was left open. Sign up here. https://www.reuters.com/world/europe/italy-prosecutors-put-captain-under-investigation-after-sinking-lynch-yacht-2024-08-26/
2024-08-26 06:05
Aug 26 (Reuters) - Woodside Energy (WDS.AX) , opens new tab, Australia's top independent gas producer, is on track to post a drop in interim earnings on Tuesday, with investors focusing on its deal-making strategy after the collapse of a $52 billion merger with Santos (STO.AX) , opens new tab. Perth-based Woodside is expected to report an underlying net profit after tax of $1.11 billion for the six months ended June, according to a Visible Alpha consensus cited by Jarden, compared with $1.90 billion reported a year ago. "Woodside's portfolio is ex-growth and very highly concentrated in the yet-to-be-started Scarborough field. This is problematic and necessitates M&A, in our view," analysts from Citi said in a research note earlier this month. The company is scheduled to report its first-half results before markets open on August 27. Woodside recently received primary environmental approvals for its $12.5 billion Scarborough gas project in Western Australia, which is seen as a growth catalyst, with its first LNG cargo likely in 2026. Despite some of Woodside's recent billion-dollar deals, including the acquisition of LNG developer Tellurian (TELL.A) , opens new tab analysts are uncertain about the energy firm's future M&A plans to expand its LNG portfolio. "The prevailing share price... along with our cautious stance on oil into 2025 and the uncertainty on the dividend and future M&A, we can’t yet argue value," analysts at Citi added. Woodside traded at a P/E of 20.2 on Monday based on the last 12 months of earnings, compared to the broader Australian market (.AXJO) , opens new tab which was trading at a P/E of 17.9, according to LSEG data. Lower demand from top consumer China, along with geopolitical tensions in the Middle East have sent Brent crude prices sharply lower from their 2022 highs. Analysts at Jarden have lowered the estimate for Woodside's dividend payout ratio to 65% from 80% due to costs associated with its recent acquisitions. Meanwhile, Santos reported a larger-than-expected drop in half-year profit to $654 million, citing lower realized prices and higher costs. Santos, Australia's second-largest independent gas producer, has become a potential takeover target after failing to agree on a merger valuation with Woodside. Santos' Chairman Kevin Gallagher has indicated a willingness to sell certain projects or the entire $16.3 billion company, as it has underperformed the broader energy index with a declining share price. Sign up here. https://www.reuters.com/business/energy/woodside-energy-earnings-set-dip-investors-eye-strategic-deals-2024-08-26/
2024-08-26 06:03
Demand from central banks despite record high prices -analyst India's gold duty cut likely to spark buying spree Odds of 25 bp rate US rate cut in Sept at 65% - CME FedWatch Aug 26 (Reuters) - Gold held near record highs on Monday, buoyed by a softer dollar and dovish remarks from U.S. Federal Reserve Chair Jerome Powell bolstering expectations of a September interest rate cut. Spot gold was up 0.6% to $2,526.15 per ounce at 1159 GMT, about $5 shy of the record high of $2,531.60 hit last week. U.S. gold futures also gained 0.6% to $2,561.90. The dollar hit its lowest in more than a year, making gold less expensive for other currency holders. Powell strongly signalled the potential for U.S. rate cuts, indicating that upcoming economic data would determine their pace and scale, which could boost gold investment demand, UBS analyst Giovanni Staunovo said. Powell on Friday endorsed an imminent start to rate cuts, saying further cooling in the job market would be unwelcome. Traders have fully priced in a cut for next month, with a 65% chance of a 25 basis point (bp) reduction and a 35% chance of a 50 bp cut, according to the CME FedWatch tool , opens new tab. A low interest rate environment tends to boost non-yielding bullion's appeal. "Central banks purchases are linked to a mandate to buy a specific amount of gold over a specific time frame ... fears of sanctions, geopolitics, ballooning debts, are likely to keep demand from central banks supported despite record high prices, in my view," Staunovo said. India's gold demand during the upcoming festive season is likely to remain robust as a substantial reduction in import duty has made prices appealing, industry officials said. Gold demand in China is expected to improve in coming months as consumers adjust to higher prices, industry officials said. Spot silver rose 1% to $30.11. "Sluggishness in global industrial production has capped (the) upside for silver, while it has not benefited from the geopolitical risk premium aiding gold," analysts at Heraeus said in a note. "However, with interest rate cuts now firmly on the horizon, silver could begin to rise with gold." Platinum gained 0.8% to $970.76 and palladium eased 0.3% to $960.03. Sign up here. https://www.reuters.com/markets/commodities/gold-holds-ground-september-us-rate-cut-expectations-2024-08-26/
