2024-08-21 23:17

LONDON, Aug 22 (Reuters) - Britain's decision to issue dozens of new oil and gas exploration licences is being challenged in court by a marine conservation organisation, which argues ministers unlawfully failed to consider the impact on marine life. Oceana UK is taking legal action over 31 licences issued under Britain's previous government in May this year as part of the North Sea Transition Authority's latest oil and gas licensing round. An exploration licence does not necessarily result in a producing field, though environmental groups argue that expansion of oil and gas production is inconsistent with the government's target to become a net-zero carbon economy by 2050. Oceana and other members of the Ocean Alliance Against Offshore Drilling this week wrote to Britain's Energy Secretary Ed Miliband, asking him to concede Oceana's legal challenge. "By conceding the case, the government can make good on promises made to the public and signal a clear departure from the previous administration's continuing reliance on fossil fuels," they wrote. Britain's Department for Energy Security and Net Zero declined to comment. Oceana's case is the latest challenge over fossil fuels as campaigners increasingly turn to the law to force governments to move more quickly on tackling emissions, with mixed success. Sign up here. https://www.reuters.com/world/uk/uk-faces-legal-action-over-new-north-sea-oil-gas-licences-2024-08-21/

2024-08-21 23:09

Nippon Steel to pay $720 mln for 20% stake in mine JFE to pay $360 mln for 10% share Nippon Steel, JFE may hunt for more coking coal assets Aug 22 (Reuters) - Whitehaven Coal (WHC.AX) , opens new tab has struck separate deals with Japan's Nippon Steel (5401.T) , opens new tab and JFE Steel to sell stakes of 20% and 10%, respectively, in its Blackwater coking coal mine for a total of $1.08 billion, the Australian miner said on Thursday. Australia is the top source of the key steel-making ingredient for Japanese steelmakers who have been concerned by a wave of consolidation, as competition grows from India and Indonesia for the higher grade fuel. Blackwater will be owned by Whitehaven, Nippon Steel and JFE Steel via an unincorporated joint venture, which will be managed by Whitehaven, it said, adding the deals are expected to complete in the first quarter of 2025. Whitehaven had acquired the Blackwater and Daunia mines from a joint venture of BHP (BHP.AX) , opens new tab and Japanese trading house Mitsubishi Corp (8058.T) , opens new tab in a $4.1 billion deal last October. For Japanese steelmakers, the latest deal will secure high-quality, long-term supplies as coal miners struggle to develop or expand mines due to anti-coal trend aimed at combating climate change. Japanese trading companies, previously equity investors in coal mines, have been offloading their assets amid the global shift away from fossil fuels. "We decided to invest to ensure stable raw material procurement and secure earnings even if market conditions change," Ryuichi Nagai, Nippon Steel's managing executive officer, told reporters. Japan's top steelmaker purchased a stake in Canadian miner Teck Resources's (TECKb.TO) , opens new tab steelmaking coal unit early this year. "We'll continue striving to secure quality resources," Nagai added, expressing interest in acquiring more stakes in coking coal and iron ore mines if good deals arise. JFE Steel, the flagship unit of JFE Holdings (5411.T) , opens new tab, may also look to acquire more stakes in coking coal mines, Naohiro Yamauchi, general manager, said in a separate news conference. "Demand for coke is expected to rise due to growing steel demand in India and Southeast Asia while supply is tightening as developing and expanding coal mines becomes increasingly difficult due to financing challenges," he said. Sign up here. https://www.reuters.com/markets/commodities/australias-whitehaven-coal-sell-30-blackwater-stake-nippon-steel-jfe-steel-2024-08-21/

2024-08-21 22:33

Fed's July minutes bolster Sept rate cut hopes Target jumps after lifting FY profit forecast JD.com slides after Walmart sells $3.74 bln stake Labor Dept issues biggest downward benchmark payrolls revision since Great Recession Indexes up: Dow 0.14%, S&P 500 0.42%, Nasdaq 0.57% NEW YORK, Aug 21 (Reuters) - U.S. stocks advanced on Wednesday amid range-bound trading after investors parsed a steep downward revision in payrolls, and the release of the minutes from the most recent meeting of the Federal Reserve, which cemented expectations for a September rate cut. All three major U.S. stock indexes closed modestly higher, with chips (.SOX) , opens new tab boosting the Nasdaq. The Dow's gains, weighted by financial stocks, (.SPSY) , opens new tab were more muted. "The seasonality of things, waiting for Jackson Hole, waiting to see whether there will be a Fed cut in September or not - it’s causing bulls and bears to sit on the sidelines," said Oliver Pursche, senior vice president at Wealthspire Advisors in New York. "There’s no compelling reason to do anything right now." The Fed released minutes from its July monetary policy meeting, at which members of the Federal Open Market Committee elected to keep the key interest rate unchanged. The July meeting occurred before the disappointing employment report for that month and a host of economic reports pointing to cooling inflation and a softening but resilient economy. Even so, the minutes suggest Fed officials were already strongly leaning toward a rate cut at the meeting scheduled for September. They also set the stage for the Jackson Hole Economic Symposium to convene on Thursday, where Fed Chair Jerome Powell will speak on Friday. In economic news, the Labor Department released its preliminary benchmark revision to payrolls data for the 12 months through March 2024. The revision lowered the 2.9 million payroll adds originally reported by 818,000. It was the steepest preliminary downward revision since the global financial crisis, and suggested that the apparent softening in the labor market could be more pronounced than previously assumed. "Prior to today’s labor market data, the enthusiasm around Powell’s speech (on Friday) was probably fairly muted," said Pursche. "That changed today. "This revision, which was a big number, is putting Chairman Powell in a position where he's going to have to talk about the outlook for the labor market," Pursche added. The Dow Jones Industrial Average (.DJI) , opens new tab rose 55.52 points, or 0.14%, to 40,890.49, the S&P 500 (.SPX) , opens new tab gained 23.73 points, or 0.42%, to 5,620.85 and the Nasdaq Composite (.IXIC) , opens new tab added 102.05 points, or 0.57%, to 17,918.99. Nine of the 11 major sectors of the S&P 500 closed in positive territory, with consumer discretionary shares (.SPLRCD) , opens new tab enjoying the largest percentage gains. Target (TGT.N) , opens new tab raised its 2024 profit forecast and posted its first quarterly increase in same-store sales in over a year, sending the retailer's stock surging 11.2%. TJX Cos (TJX.N) , opens new tab rose 6.1% after the discount retailer lifted its annual profit forecast. Macy's (M.N) , opens new tab lowered its annual net sales forecast, sending shares of the department store chain sliding 12.9%. U.S.-listed shares of Chinese e-commerce firm JD.com dropped 4.2% after Walmart (WMT.N) , opens new tab, the company's biggest shareholder, sold its stake in the firm. Ford Motor (F.N) , opens new tab announced it was shaking up its electric vehicle plans. Its stock rose 1.6%. Advancing issues outnumbered declining ones on the NYSE by a 3.61-to-1 ratio; on Nasdaq, a 2.52-to-1 ratio favored advancers. The S&P 500 posted 47 new 52-week highs and 1 new low; the Nasdaq Composite recorded 85 new highs and 65 new lows. Volume on U.S. exchanges was 9.86 billion shares, compared with the 12.06 billion average for the full session over the last 20 trading days. Sign up here. https://www.reuters.com/markets/us/futures-stall-lead-up-payrolls-revisions-fed-minutes-2024-08-21/

2024-08-21 21:56

OTTAWA, Aug 21 (Reuters) - Canadian Prime Minister Justin Trudeau urged on Wednesday the country's two main rail companies and the Teamsters union to settle their differences and avoid a stoppage that could cause billions of dollars worth of economic damage. But the chances of a last-minute deal appeared to vanish later when Canadian National Railway (CNR.TO) , opens new tab said talks had broken down and called for the government to intervene. CN Rail and Canadian Pacific Kansas City (CP.TO) , opens new tab say they will lock out their workers early on Thursday unless new deals can be agreed. The two have never shut down at the same time. Talks between both companies and the union have made little progress, with each side accusing the other of bad faith. Trudeau told reporters in Quebec that his government was following the matter closely. "It is in the best interest of both sides to continue doing the hard work at the table to find a negotiated resolution," he said. "Millions of Canadians, of workers, of farmers, of businesses right across the country, are counting on both sides to do the work and get to a resolution." Federal Labor Minister Steven MacKinnon met CN executives on Tuesday in Montreal and with CPKC in Calgary on Wednesday. Canada, the world's second-largest country by territory, relies heavily on rail transport to move a wide range of goods and commodities. "It would be totally unacceptable for us as a country to sabotage ourselves right now," Finance Minister Chrystia Freeland told reporters in Edmonton, Alberta. "I am calling with extreme seriousness on the employers and on the union to roll up their sleeves to get a deal done ... the country has no patience with dillydallying." Ratings agency Moody's said shutting down 75% of Canada's freight rail traffic would cost the economy C$341.5 million ($251 million) per day, a rate equal to more than 4% of the nation's GDP. In an emailed statement, CN called on the labor minister to intervene. "CN has tried to get a deal but a deal is not possible without a willing partner," CN said. MacKinnon has the power to refer the dispute to binding arbitration but the government said it wants the issue to be settled at the negotiating table. A group of business associations called for Ottawa to prevent a stoppage. "The federal government must show leadership and act before our trains - and with them, our economy - grind to a halt," they said in a joint appeal to Trudeau. The Teamsters say CN and CPKC are seeking concessions that would dilute worker safety, a charge that both companies deny. Dean Roberts, a director of the Canola Council of Canada, told reporters that failure to reach a deal would mean "we are sleepwalking into a calamity". Sign up here. https://www.reuters.com/world/americas/canada-pm-says-railways-union-must-settle-issues-negotiating-table-2024-08-21/

2024-08-21 21:51

Aug 22 (Reuters) - A look at the day ahead in Asian markets. The Bank of Korea's interest rate decision and guidance take center stage in Asia on Thursday, as investors digest revised U.S. jobs data and Fed minutes on Wednesday that fanned hopes that the looming U.S. rate-cutting cycle will be a bold one. The calendar in Asia also includes purchasing managers index data from Japan, Australia and India, inflation from Malaysia and some company earnings from China and Hong Kong, namely Baidu's second quarter results. China's largest search engine provider is expected to see a decline in revenue for the first time since the fourth quarter of 2022 as ad sales drop. Investors will look for comments on ad market trends and updates on its key AI offering Ernie Bot. The broader trading and investment picture, however, will be dominated by the latest shift in the U.S. rate outlook, as attention turns toward Fed Chair Jerome Powell's Jackson Hole speech on Friday. Lower Treasury yields and a falling dollar should help ease financial conditions for emerging markets and encourage risk-taking in Asia on Thursday, providing the slump in yields isn't reflecting heightened fears of recession. That doesn't appear to be the case - Wall Street rose on Wednesday and the S&P 500 is now less than 1% from its all-time peak - although the fall in Treasury yields will bear close attention. The dollar hit another low for the year against a basket of G10 currencies on Wednesday and the MSCI index of emerging market currencies hugged its record high. China's yuan was fixed at a one-month high on Wednesday, while the Japanese yen touched a two-week high through 145.00 per dollar. The dollar is suffering across the board from falling U.S. yields. After the Bank of Thailand, Bank Indonesia and People's Bank of China all kept their benchmark lending rates unchanged this week, the spotlight falls on the Bank of Korea on Thursday. On Wednesday the Thai central bank struck a neutral tone in its statement, while Bank Indonesia Governor Perry Warjiyo said supporting the rupiah helps bring down the cost of imports, especially food prices. The BOK is also expected to stand pat on rates and leave its benchmark rate at 3.50% where it has been since January last year. Analysts expect the BOK to wait for the Fed to begin cutting rates before easing policy in the fourth quarter. With inflation rising 2.6% in July from an 11-month low of 2.4% in June, moving further away from the central bank's 2% target, the BOK may need to see prices stabilizing before it starts to ease policy. Here are key developments that could provide more direction to Asian markets on Thursday: - South Korea interest rate decision - Japan, Australia, India manufacturing & services PMIs (August) - Malaysia inflation (July) Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-graphic-pix-2024-08-21/

2024-08-21 21:07

ASUNCION, Aug 21 (Reuters) - Paraguay's economy is on track to grow a faster-than-expected 4% this year, President Santiago Pena told Reuters on Wednesday, a bullish forecast above official estimates that comes despite depressed prices for its top export, soy. Pena, 45, said growth would beat the current central bank estimate of 3.8%, already one of the region's highest. "We are confident that we are going to have growth above 4%," Pena said from the presidential residence in capital Asuncion, citing strong investment and aid to help farmers ship exports. That support will include deepening waterways needed for grains shipments that have been affected by low river levels, he said. As the economy booms, Pena said he expected ratings agencies such as S&P and Fitch to upgrade the country's sovereign debt rating early next year. Moody's hiked Paraguay's rating to investment grade in July, citing fiscal policy stability and state investments. Paraguay is in advanced talks to join the Organization for Economic Co-operation and Development (OECD) by the end of his current term in 2028, added Pena, an economist who came into power a year ago with the conservative Colorado party. Sign up here. https://www.reuters.com/world/americas/paraguay-president-says-economy-should-grow-faster-4-2024-despite-soy-price-2024-08-21/