2024-09-25 21:50

Sept 26 (Reuters) - A look at the day ahead in Asian markets. Asian markets could lose steam on Thursday following a sluggish performance on Wall Street on Wednesday, and as the sugar high from China's biggest economic and market stimulus package since the pandemic earlier in the week shows signs of fading. Higher U.S. bond yields across the curve and the dollar's biggest rise in a month should limit investors' risk appetite. That one-two combo is certainly weighing on the Japanese yen, which goes into Thursday's session in Asia at a three-week low near 145.00 per dollar. The global growth and policy picture is pretty murky too, which may give investors pause. Weak U.S. consumer confidence figures have revived doubts about the U.S. "soft landing", while the euro zone's growth and inflation outlook seems to be softening by the day. Economists at HSBC on Wednesday revised their European Central Bank forecasts, and now expect 25 basis point rate cuts at every meeting from October until April 2025. That would take the benchmark deposit rate down to 2.25%. Weakness in the euro zone should ring alarm bells for China, given the strength of bilateral trade and financial ties. While Chinese stocks leapt another 1.5% on Wednesday to a fresh two-month high, they closed near the lows of the day. Hong Kong stocks are on a roll - the Hang Seng is up 15% in just two weeks - and the MSCI Asia ex-Japan index is its highest since February 2022. Could both be ready for a time out? The euro's slide and U.S. bond yield spike, meanwhile, helped the dollar claw back some ground on Wednesday. Having earlier flirted with a new 14-month low, the dollar index rose 0.4% to post its biggest daily gain in a month. The greenback struggled more against emerging market currencies though, and perhaps the most eye-catching move was by the Chinese yuan. It continued its impressive rally of the last couple of months and rose for a sixth day against the dollar in spot trading, its longest winning streak since January last year. The offshore yuan, meanwhile, pierced 7.00 per dollar for the first time also since January last year. Indeed, since the one-day burst of global market volatility on Aug. 5, China's yuan has appreciated more than 3% against the U.S. dollar, a remarkable run given how tightly Beijing manages the exchange rate. Among the Asian economic indicators on deck on Thursday are manufacturing data from Thailand, industrial production figures from Singapore, and the latest snapshot of international trade from Hong Kong. On the policy side, the Bank of Japan releases minutes of its July 30-31 policy meeting, and the Reserve Bank of Australia publishes its Financial Stability Review. Here are key developments that could provide more direction to Asian markets on Thursday: - BOJ minutes from July 30-31 policy meeting - Singapore industrial production (August) - Hong Kong trade (August) Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-graphic-pix-2024-09-25/

2024-09-25 21:46

Strike could cost economy $5 billion daily, JPMorgan says Disruption could lead to food shortages and price hikes Port workers' contract expires on Sept. 30 WASHINGTON/CHICAGO, Sept 25 (Reuters) - Agriculture organizations on Wednesday urged the White House to take action to avert a potential Oct. 1 strike at U.S. East and Gulf Coast ports that handle roughly half of the country's ocean trade, including consumer staples like coffee, meat and eggs. Dozens of groups including the American Farm Bureau Federation, Renewable Fuels Association and American Chemistry Council said "the time has come for the U.S. government to intervene and ensure port operations do not stop" in order to prevent damage to U.S. agriculture and the economy. Republican Senator Ted Cruz cited a JPMorgan analysis that projected a port strike could cost the U.S. economy $5 billion daily, and warned that the U.S. "teeters on the brink of the first union strike among East and Gulf Coast ports since 1977." Cruz hails from Texas and represents the district that includes the Port of Houston, one of 36 seaports at the center of labor talks that appear to be deadlocked over worker pay. Threatened work stoppages could also affect other busy ports like New York and New Jersey; Savannah, Georgia; and Norfolk, Virginia, and spell trouble for an ocean shipping network already stretched thin due to rerouting ships around Africa to avoid Houthi militant attacks on vessels near the Suez Canal. U.S. companies that rely on East and Gulf Coast ports have been scrambling for workarounds ahead of a threatened strike. The current contract between the International Longshoremen's Association union, which represents 45,000 port workers, and the United States Maritime Alliance, which negotiates for employers at ports from Texas to Maine, expires on Sept. 30. A threatened strike would land just weeks ahead of the U.S. presidential election between Democratic Vice President Kamala Harris and Republican former President Donald Trump. The White House did not immediately comment on the agricultural groups' request. "We are monitoring and assessing potential ways to address impacts to U.S. supply chains related to operations at our ports, if necessary," White House spokesperson Robyn Patterson said on Tuesday. President Joe Biden's administration has said the president does not intend to invoke a federal law known as the Taft-Hartley Act to prevent a strike. Any delays and costs tied to a strike could quickly snowball, endangering a broad swath of industries, including retail, manufacturing and food. About 14% of all U.S. waterborne agricultural exports, by volume, would be at risk from a strike. Over a one-week period, the potential value of those exports is estimated at $318 million, the Farm Bureau said in an article. Additionally, 53% of U.S. waterborne agricultural imports, by volume, are vulnerable to a strike, leading to a potential economic impact of over $1.1 billion per week, the group said. A prolonged strike could result in shortages of familiar items like bananas, coffee and cocoa, which over time could translate to higher grocery prices. It could also mean lost export sales of key agricultural products including beef, pork, chicken and eggs. American consumers, however, could benefit if those perishable products are dumped onto the domestic market as producers employ a "sell it or smell it" strategy. Of the nearly $5.5 billion in U.S. poultry meat products exported last year, two-thirds was shipped from East and Gulf Coast ports, according to U.S. Customs data and the USA Poultry & Egg Export Council. "The U.S. consumer could be a marginal beneficiary at the egg and meat counter," said Sterling Smith, director of agricultural research at AgriSompo North America. "However, those gains may be more than offset by problems with coffee and cocoa." Sign up here. https://www.reuters.com/markets/commodities/agriculture-groups-urge-white-house-avert-east-coast-port-disruption-2024-09-25/

2024-09-25 21:38

WASHINGTON, Sept 25 (Reuters) - A Maryland woman affiliated with a neo-Nazi group was sentenced to 18 years in prison on Wednesday after admitting to a plot to attack Baltimore's power grid, according to the U.S. Justice Department and court filings. Sarah Beth Clendaniel, 36, sought to target five electrical substations around Baltimore, Maryland's largest city, to further a white supremacist ideology that sought the collapse of American society, according to prosecutors. "The Justice Department will continue to aggressively counter, disrupt and prosecute those who seek to launch these kinds of hate-fueled attacks that target our critical infrastructure, endanger entire cities, and threaten our national security," U.S. Attorney General Merrick Garland said in a statement. Clendaniel pleaded guilty in April to conspiracy to damage an energy facility and possession of a firearm by a convicted felon. Clendaniel was recorded telling an associate that the plan, if successful, "would completely destroy this whole city," according to prosecutors. A lawyer for Clendaniel asked a judge to impose a 10-year prison sentence, arguing that Clendaniel had a difficult upbringing and "sought meaning and control in toxic beliefs and planning of destruction," according to a court filing. "Her inherent goodness may at times be buried beneath destructive ideologies, but it is not destroyed," the lawyer, Sedira Banan, said. Clendaniel was charged last year along with Brandon Russell, the founder of a neo-Nazi group called the Atomwaffen Division, according to the Southern Poverty Law Center, a civil rights organization that tracks U.S. hate groups. Russell is awaiting trial in his case. Sign up here. https://www.reuters.com/world/us/white-supremacist-receives-prison-plot-target-baltimore-power-grid-2024-09-25/

2024-09-25 21:19

HOUSTON, Sept 25 (Reuters) - U.S. shale oil and gas executives are moving to electric rigs and fracking to reduce diesel emissions but grid infrastructure and cost challenges are hurdles, the Federal Reserve Bank of Dallas said on Wednesday in its quarterly energy survey. The survey of Texas, Louisiana and New Mexico executives also revealed third-quarter oil and gas production was mixed, with data suggesting oil production increased while natural gas production decreased. Nearly a fifth of oil and gas executives said they have fully converted to electric-powered drilling rigs and hydraulic fracturing, a way to cut pollution from diesel-powered equipment. Another 6% said they aim to electrify their production operations, and a further 31% said they expect to partially electrify their operations. In addition to reducing emissions, electrification can eliminate the pollution and noise of diesel-powered rigs and fracking equipment. Around 29% of surveyed respondents with operations primarily in the Permian basin of west Texas and New Mexico said the top challenge to electrification was uncertainty about future access to the grid. Another quarter of those polled primarily cited grid infrastructure challenges. Oilfield service executives criticized the permitting processes for slowing the industry's move to electrifying operations. Some pointed to long lead times for equipment and the expense of electrifying production. "Statutory requirements for utilities to approve grid interconnections have no teeth; what should take three months now takes 12 to 18 months," one service executive commented. The survey was carried out from Sept. 11 to 19 and covered 136 energy firms, of which 91 were exploration and production firms and 45 oilfield services firms. The Dallas Fed's employment index was positive for the 15th consecutive quarter, but the low single-digit result suggested little to no overall hiring, according to the survey. Costs for both E&P firms and oilfield service firms rose but at a slower pace compared with the second quarter, the survey said. Sign up here. https://www.reuters.com/business/energy/regional-oil-activity-slips-electrification-gains-says-dallas-fed-2024-09-25/

2024-09-25 21:18

SAO PAULO, Sept 25 (Reuters) - Brazil antitrust body CADE said on Wednesday it approved meatpacker Minerva's acquisition of slaughtering plants run by rival Marfrig in the country, part of a broader billion-dollar deal involving 16 units in South America. CADE, however, blocked Minerva from holding Marfrig's Pirenopolis plant, and said that Minerva would have to sell it off for the deal to go through. Minerva said the plant has been closed since 2010, and that it had no plans to reopen. WHY IT'S IMPORTANT Brazilian meatpacker Minerva (BEEF3.SA) , opens new tab and Marfrig (MRFG3.SA) , opens new tab are among the largest beef producers in the world. ADDITIONAL CONTEXT The firms announced last year an agreement under which Minerva would buy a total of 16 slaughtering plants from Marfrig in South America for 7.5 billion reais ($1.37 billion). Most of these plants process cattle. In May, Uruguay's antitrust regulator blocked the purchase of the three plants that are located in Uruguay. The decision was not final and Minerva previously said it would appeal. WHAT'S NEXT Minerva said in a securities filing on Wednesday it expects to conclude the acquisition of the slaughtering plants in Argentina, Chile and Brazil by the end of October. It did not mention the Uruguayan plants. ($1 = 5.4780 reais) Sign up here. https://www.reuters.com/markets/deals/brazils-antitrust-regulator-greenlights-minerva-purchase-marfrig-plants-2024-09-25/

2024-09-25 21:02

SAO PAULO, Sept 25 (Reuters) - A widespread drought in Brazil has halted the transport of grains through the Madeira river, an important northern waterway linking key croplands with the country's ports, regional port terminals association Amport said on Wednesday. The Madeira river is a key corridor for shipping products from Rondonia state and parts of Mato Grosso state, Brazil's top soy producer, to export terminals located in the country's northern states. "Grain transportation in the Madeira is currently halted as river's depth in critical points is around two meters (6.6 ft), making navigation commercially unfeasible," Amport President Flavio Acatauassu told Reuters. Some 34% of Brazilian soy exports in 2023, and almost 43% of corn exports were shipped through the so-called North Arc region, which includes ports located in northern Brazil, according to data from the national crop agency Conab. Brazil is the world's largest exporter of soy, and one of the largest corn exporters. However, the shipping halt may not affect Brazilian exports as local farmers have already shipped most of the grains expected for 2024. Local grains traders lobby Anec said on Wednesday that the lower capacity for transporting grains through northern ports has raised costs for the exporters, but added the companies had been already prepared. "There should be no reduction in grain exports due to the drought in the northern region, as traders work with a very high level of precaution," Anec's General Director Sergio Mendes said. Sign up here. https://www.reuters.com/markets/commodities/brazil-drought-dries-river-stops-shipping-key-grains-corridor-2024-09-25/