2024-08-21 10:30

DUBAI, Aug 21 (Reuters) - Greek-flagged oil tanker Sounion was adrift in the Red Sea on Wednesday after coming under multiple attacks, which sparked a fire on board, the UK maritime agency said. The vessel was attacked by two small boats and struck by multiple projectiles off Yemen's port city of Hodeidah on Wednesday morning, the Greek shipping ministry and the United Kingdom Maritime Trade Operations (UKMTO) said. In a later update, the UKMTO said the Sounion had reported coming under renewed attack, causing a fire on board and causing the vessel to lose engine power and the ability to manoeuvre. Delta Tankers, the ship's operator, confirmed the ship was adrift and had sustained minor damage. Its crew was assessing the situation and it would proceed on its journey, it said in a statement, declining to comment further. There were no reports of injuries among the 25 crew members - two Russians and the rest Filipinos. A maritime source told Reuters the vessel was expected to be able to sail "relying on its own means". Iran-aligned Houthi militants have launched a series of attacks on international shipping near Yemen since last November in solidarity with Palestinians in the war between Israel and Hamas. The Sounion reported being approached by two small craft with about 15 people on board and said there was a brief exchange of small arms fire during the incident 77 nautical miles (142 km) west of Hodeidah, the UMKTO said. British security firm Ambrey separately reported another incident in the same area, saying "the vessel was engaged by small arms fire from two skiffs in a previous incident 10NM further south", it said, without naming the ship involved. The attacks on shipping have drawn U.S. and British retaliatory strikes on Houthi territories and disrupted global trade as ship owners reroute vessels away from the Red Sea and Suez Canal to sail the longer route around the southern tip of Africa. Sign up here. https://www.reuters.com/world/middle-east/tanker-reports-attack-off-yemens-hodeidah-ukmto-says-2024-08-21/

2024-08-21 10:10

MUMBAI, Aug 21 (Reuters) - The Indian rupee dropped on Wednesday to log its worst single-day performance in nearly two months as dollar demand from importers and foreign banks wiped off nearly all of the currency's gains from earlier in the week. The rupee closed at 83.9225 against the U.S. dollar, down 0.16% from its close at 83.87 in the previous session, its sharpest single day decline since June 26. It shed gains after touching a two-week high of 83.7550 on Tuesday. The dollar index rose 0.1% to 101.5, recovering slightly from a fall to its over seven-month low earlier in the day. The local currency has weakened 0.2% over August so far even as its Asian peers have rallied on the back of a near 2.5% fall in the dollar index. Strong dollar demand from importers alongside outflows from equities have weighed on the rupee, traders said. Overseas investors have net sold over $2.5 billion of Indian stocks over August so far. Additionally, some exporters have refrained from dollar sales anticipating further weakness in the rupee, which has weighed on the overall supply of dollars in the market, a foreign exchange salesperson at a private bank said. Traders will pay attention to the minutes of the Federal Reserve's July meeting and revisions to U.S. payroll data, both due later in the day. "The market seems to be in the mood to sell dollars. Fuel for that dollar selling today could be some benchmark revisions to US job numbers," ING Bank said in a note. Sharply lower revised payroll numbers are also likely to prompt investors to raise bets on deeper rate cuts by the Fed compared to the nearly 100 basis points of easing currently priced in. Sign up here. https://www.reuters.com/markets/currencies/rupee-ends-lower-logs-worst-single-day-fall-nearly-two-months-2024-08-21/

2024-08-21 10:07

A look at the day ahead in U.S. and global markets by Samuel Indyk The relentless recovery in the S&P 500 from early August's post-payrolls trough finally took a pause on Tuesday after eight straight up days, and futures are not giving too much indication about the direction of travel on Wednesday. The benchmark U.S. index (.SPX) , opens new tab fell 0.2%, hardly a dramatic fall, but a fall nonetheless. It was the index's first down day since Aug. 7. S&P futures are hovering around unchanged on Wednesday, as are those on the Nasdaq and Dow Jones . The waning upside momentum arrives as markets turn their attention to U.S. jobs data, this time benchmark revisions to non-farm payrolls, which could show a weaker labor market than previously thought. But, as Deutsche Bank notes, the revisions only affect numbers up to the March payrolls and do not cover job gains since. Remember, it was July's weak jobs report that helped send global equities into a tailspin on fears that the U.S. economy was heading for a recession. Markets moved rapidly to price in a faster pace of easing from the Fed this year and still see almost 100 bps of rate cuts by the end of 2024. With only three meetings left, that implies two quarter-point cuts and one 50 bps move, a much more aggressive pace than expected at the start of the month. In contrast, a slim majority of economists polled by Reuters believe the Fed will cut rates by 25 bps at each of the three meetings left this year, while only 11% of those surveyed expected the Fed to cut by 100 bps or more. Clues about the path of interest rates could come later as the Fed releases the minutes from its July meeting, when rates were held steady at 5.25%-5.5%. Policymakers have largely kept quiet on whether an outsized move could be possible, but in an interview with the Associated Press on Monday, Atlanta Fed President Raphael Bostic appeared to prepare markets for a more aggressive rate path lower. "Evidence of accelerating weakness in labor markets may warrant a more rapid move, either in terms of the increments of movement or the speed at which we try to get back," Bostic said on Monday, referencing the level of rates that would not be restrictive. Fed Chair Jerome Powell will be able to give his view on where rates are heading on Friday when he speaks at the Kansas City Fed's annual central bank get-together at Jackson Hole, Wyoming. As inflation cools and the labor market looks rocky, Powell might use his platform to signal markets are right about how quickly borrowing costs can be lowered. For now, markets are in wait-and-see mode. European shares (.STOXX) , opens new tab are up slightly, the dollar is rising a touch but only after falling to its lowest level since January earlier in the day. Benchmark Treasury yields are little changed. Key developments that should provide more direction to U.S. markets later on Wednesday: * U.S. nonfarm payrolls benchmark revisions * FOMC minutes * U.S. to sell $16 billion of 20-year bonds * Earnings from Target, Analog Devices, TJX Sign up here. https://www.reuters.com/markets/us/global-markets-view-usa-pix-2024-08-21/

2024-08-21 07:59

CANBERRA, Aug 21 (Reuters) - A rising number of Australian farmers are disgruntled with the government's climate and agricultural policies, a survey showed on Wednesday, as measures to protect the environment draw farmers' ire in Europe and some other places. Australia is one of the world's biggest agricultural exporters, shipping nearly $50 billion worth of products as varied as beef, wheat and wine in the 2022-23 financial year. Since coming to power in 2022, the country's Labor government has passed legislation that will ban exports of live sheep and restrict the use of water for farming in some areas. It has also sought to raise more money from farmers for biosecurity and pushed ahead with renewable energy projects in rural areas, causing anger in the farming sector. Seventy-three percent of 1,026 farmers surveyed across the country said government policies were harming the industry, up from 54% a year ago, the poll by the National Farmers' Federation (NFF) and communications agency Seftons found. Eighty percent said the government did not understand or listen to farmers, up from 41% last year, with only 10% saying the government had a positive plan to grow the farm sector. Half of respondents thought Australia's food and fibre production would increase over the next decade, down from 56% a year ago. "The results are unsurprising. Critical issues like the live sheep export ban, biosecurity tax and water buybacks have weighed heavily on farmers," said NFF President David Jochinke. "Farmers are frustrated," he said. "They feel they aren't being heard and they are being steamrolled by harmful policies - that appear to be driven by activist groups or politicians, not farmers." Earlier this year, farmers in numerous European countries staged protests over a range of issues including excessive environmental rules. Sign up here. https://www.reuters.com/markets/australian-farmers-increasingly-concerned-about-government-policy-poll-finds-2024-08-21/

2024-08-21 07:53

Bank of Thailand votes 6-1 to keep rate at 2.50% Says rate is neutral, not high vs global rates Says ready to adjust rate if conditions change Economists expect rate cut in Q4 BANGKOK, Aug 21 (Reuters) - Thailand's central bank left its key interest rate unchanged for a fifth straight meeting on Wednesday, saying the current level was neutral as it waits to see whether the country's new prime minister will make changes to economic stimulus policies. The Bank of Thailand's (BOT) monetary policy committee voted 6-1 to hold the one-day repurchase rate (THCBIR=ECI) , opens new tab at 2.50%, the highest in more than a decade, as predicted by 24 of 27 economists in a Reuters poll. Three economists had forecast a cut. "The majority of the committee deems that the current policy interest rate is consistent with the economy converging to its potential, as well as conducive to safeguarding macro-financial stability," the BOT said in a statement. The dissenting member voted for a 25-basis-point (bps) cut. The key rate is neutral and not high compared with global rates, said Assistant Governor Piti Disyatat, adding that the BOT would ensure it does not hinder economic activity. "If the conditions change, adjustments may be needed to maintain the neutral rate," he told a press conference. "We have to wait and see how stimulus measures will change," he added. Miguel Chanco, chief emerging Asia economist at Pantheon Macroeconomics, said he expected two rate cuts, one 25-bps cut each in October and December as private domestic demand weakened. "The recent change in administration will also be a factor, as the future of the previous government's Q4 digital cash handout is now more in question," he said in a note, referring to the government's flagship household stimulus programme. "If this will no longer see the light of day, then the onus to support the economy will fall harder on monetary policy," he said. Last week, a court removed Prime Minister Srettha Thavisin over a cabinet appointment. Political newcomer Paetongtarn Shinawatra, daughter of former Prime Minister Thaksin Shinawatra, has become prime minister but has yet to form a new cabinet and announce policies. Paetongtarn said she would maintain all of Srettha's policies, but she would seek to further study her Pheu Thai party's flagship "digital wallet" handout scheme worth 500 billion baht ($14.6 billion) for 50 million Thais, planned to be rolled out in the fourth quarter. Some former central bank governors and economists have called the scheme fiscally risky, citing concerns over the impact on public debt. The previous government rejected such criticism. The BOT raised its key rate by 200 basis points to 2.50% over eight meetings between August 2022 and September 2023, and has held it steady since then. Several central banks have started easing policy, including in the Philippines and New Zealand last week. Sweden delivered its second cut on Tuesday, while the Bank of England and Switzerland also lowered rates recently. The next BOT policy review is due on Oct. 16. Inflation, which was 0.83% in July, would return to its target range of 1% to 3% by the end of the year, the BOT said, adding inflation might be less than forecast this year. Southeast Asia's second-largest economy grew at a faster pace of 2.3% in the April-June quarter on the year, but analysts said fiscal policy uncertainty clouded the outlook. The BOT said the economy should grow as anticipated, with annual growth seen close to 3% in the third quarter and close to 4% in the last quarter of 2024. In June, it predicted growth of 2.6% for 2024. ($1 = 34.3200 baht) Sign up here. https://www.reuters.com/markets/asia/thai-central-bank-holds-key-rate-250-2024-08-21/

2024-08-21 07:48

MOSCOW, Aug 21 (Reuters) - Russia plans to export about 12 billion kilowatt-hours (kWh) of eletric power each year until 2030, power grid firm System Operator said on Wednesday, citing data from InterRAO, the company that handles power exports and imports. After 2030, the operator expects annual exports to fall to 10.6 billion kWh, it said. Kazakhstan and China will be the main markets for Russian power exports. Last year, Russian power exports dropped to 10.7 billion kWh from 13.6 kWh a year earlier as the European Union halted purchases due to anti-Russian sanctions. Sign up here. https://www.reuters.com/business/energy/russia-sees-electric-power-exports-flat-until-2030-operator-says-2024-08-21/