2024-08-15 20:19

Complaint could deal new blow to multi-billion-dollar trade US officials to decide on duties, retroactive measures Vietnam is top supplier of solar panels, faces heavy duties Aug 15 (Reuters) - A group of U.S. solar panel makers asked the Commerce Department on Thursday to consider imposing duties retroactively on Vietnam and Thailand due to a surge in imports, as those countries face probes for alleged unfair practices in the multi-billion-dollar trade. In May, the Commerce Department started investigations , opens new tab over silicon solar cells and panels made in Vietnam, Thailand, Malaysia and Cambodia. A group of domestic manufacturers alleges the products were sold in the U.S. at excessively low prices and benefited from subsidies from China, home to many manufacturers with factories in the region. The four Southeast Asian countries accounted for nearly 80% of U.S. imports last year in dollar terms, according to U.S. trade data reviewed by Reuters. U.S. President Joe Biden has pledged to revitalize American manufacturing by providing incentives for domestic production of goods to help fight climate change, including solar panels and electric-vehicle batteries that are mainly made in China. Some in the small U.S. solar-manufacturing sector say the industry is struggling to compete with low-priced imports. As speculation about the trade probes began circulating this year, exports from Vietnam and Thailand surged, the American Alliance for Solar Manufacturing Trade Committee said in a complaint filed with Commerce, which followed its earlier petition in April to start the trade investigations. The group represents domestic producers including Hanwha Qcells (000880.KS) , opens new tab and First Solar (FSLR.O) , opens new tab. That investigation could lead to high tariffs from as early as July, if U.S. federal officials confirm unfair trading practices in preliminary determinations scheduled in early October, and uphold retroactive duties applicable 90 days before their decisions. The trade ministries of Vietnam and Thailand did not reply to requests for comment. The new tariffs could be particularly harmful to Vietnam, which risks the highest duties as it is deemed by the United States a non-market economy. That status usually leads to harsher sanctions because domestic pricing is not considered reliable, according to trade experts. Vietnam's estimated gap between domestic and export prices, known as dumping margins, were estimated by the U.S. at over 270% using Indonesia as benchmark, more than three times higher than Thailand's. Larger margins are likely to result in higher tariffs, if approved, experts said. In their latest complaint, the U.S. manufacturers said the volume of solar imports from Vietnam and Thailand rose 39% and 17% respectively in the second quarter compared with the first quarter, as the two countries allegedly increased shipments to the United States ahead of potential duties. Such moves could be considered "critical circumstances," U.S. producers said. Both the Commerce Department and the International Trade Commission must find that critical circumstances exist for duties to be imposed retroactively. In dollar terms, sales from Vietnam to the U.S. surged in recent months. U.S. trade data shows that in April, imports rose to a record high of more than $680 million - over half the total for that month - and remained far above monthly averages in May and June. At the same time, exports in dollar terms from Thailand, Malaysia and Cambodia have slowed, the data showed. In the first six months of the year, Vietnam supplied the U.S. with solar panels and modules worth $3.3 billion, equal to 45% of all U.S. imports, up from less than 30% last year when full-year Vietnamese exports to the U.S. amounted to $4 billion. Sign up here. https://www.reuters.com/business/energy/us-solar-group-seeks-retroactive-duties-panel-imports-vietnam-thailand-2024-08-15/

2024-08-15 20:02

MEXICO CITY, Aug 15 (Reuters) - A committee in Mexico's lower house of Congress approved two constitutional reforms that would prohibit open-pit mining and fracking, as well as restrict the use of genetically modified corn. The proposals, passed on Wednesday, will be taken up for discussion by the full lower house after lawmakers return to session in September. The changes would also prevent the exploitation of water in areas with water scarcity, with the exception of extraction in populated areas for domestic use, according to a statement released Wednesday night. The changes are part of a package of constitutional reforms presented in February by President Andres Manuel Lopez Obrador, which contains other proposals, including one to restructure the judiciary. In Mexico, constitutional changes must be approved by a two-thirds vote in the plenary session of the both the lower house and the Senate, and by the majority of local congresses. In the June elections, Lopez Obrador's ruling Morena party and its allies achieved a qualified majority in the lower house and were just two seats short in the Senate. Lopez Obrador has criticized the mining contracts with private companies signed by his predecessors and says that his administration has not granted any new private concessions in the sector. The Mexican Mining Chamber (Camimex) opposes the ban on open-pit mining, saying such a prohibition would cause a 1% contraction in the country's GDP and threaten some 200,000 jobs. Regarding the genetically modified corn, the proposal comes as Mexico and the United States have an ongoing dispute at a panel of the U.S.-Mexico-Canada Agreement. The lower house committee's reform would allow for the entry of genetically modified corn into Mexico only for non-human consumption and only if the grain dos not have the capacity to germinate. Sign up here. https://www.reuters.com/markets/commodities/proposal-ban-open-pit-mining-advances-mexican-congress-2024-08-15/

2024-08-15 19:52

CAIRO, Aug 15 (Reuters) - A merchant vessel reported being approached with the use of small arms fire in waters 92 nautical miles northeast of Eritrea's Massawa port in Red Sea waters adjacent to Yemen's coast, British maritime security firm Ambrey said on Thursday. The United Kingdom Maritime Trade Operations (UKMTO) said shortly after that it received a sighting report of a small boat with armed persons onboard, operating in close proximity to a small coastal freighter, approximately 95 nautical miles northeast of Massawa. "It has been reported that the small craft self-identified as Eritrean Navy," UKMTO added in an updated advisory. Authorities are investigating, UKMTO's advisory note added. The Iran-aligned Houthi militants have launched repeated drone and missile strikes on ships they perceive as bound to or related to Israel or the United States, in the crucial shipping channels of the Red Sea, the Bab al-Mandab strait and the Gulf of Aden since November to show their support for the Palestinians in the Gaza war. This has forced shippers to re-route cargo to longer and more expensive journeys around southern Africa and has stoked fears that the Israel-Hamas war could spread and destabilise the Middle East. Sign up here. https://www.reuters.com/world/middle-east/ship-reports-small-arms-fire-off-eritrea-says-ambrey-2024-08-15/

2024-08-15 19:29

Canadian dollar falls 0.1% against the greenback Wholesale trade decreases 0.6% in June Price of U.S. oil settles 1.5% higher Bond yields rise across the curve TORONTO, Aug 15 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Thursday as the greenback notched broad-based gains and domestic data showed a decline in wholesale trade, with the currency retreating from a near four-week high it notched the day before. The loonie was trading 0.1% lower at 1.3725 to the U.S. dollar, or 72.86 U.S. cents, after touching on Wednesday its strongest intraday level since July 18 at 1.3686. "A weak two-month performance from Canadian wholesale sales might be taking some strength from the loonie," said Michael Goshko, senior market analyst at Convera Canada ULC. Canadian wholesale trade fell by 0.6% month-over-month in June, after declining by 1.2% in May, on lower sales in the motor vehicle and motor vehicle parts and accessories subsector. Separate data showed Canadian home sales falling 0.7% in July from June. The Bank of Canada has said that too much slack in the economy could slow inflation more than it would like. The U.S. dollar rose against a basket of major currencies after U.S. economic data eased fears of a recession and dampened expectations for aggressive interest rate cuts from the Federal Reserve. The prospect of a U.S. soft landing could also help Canada's economy, Goshko said. Canada sends about 75% of its exports to the United States, including oil. U.S. crude oil futures settled 1.5% higher at $78.16 a barrel. Canadian government bond yields moved higher across the curve, tracking moves in U.S. Treasuries. The 10-year was up 5 basis points at 3.073%, after four straight days of declines. Sign up here. https://www.reuters.com/markets/currencies/c-gives-back-some-recent-gains-after-weak-domestic-data-2024-08-15/

2024-08-15 16:18

NEW YORK, Aug 15 (Reuters) - The average rate on the popular U.S. 30-year mortgage rate was little changed near the lowest level in over a year this week, as signs of cooling inflation have held down the Treasury bond yields used in setting home loan costs. The 30-year fixed-rate mortgage averaged 6.49% during the week ending August 15, up fractionally from 6.47% in the prior week, the lowest since May 2023, mortgage finance agency Freddie Mac said on Thursday. “In 2023, the 30-year fixed-rate mortgage nearly hit 8 percent, slamming the brakes on the housing market," Freddie Mac Chief Economist Sam Khater said in a statement. "Now, the 30-year fixed-rate hovers around 6.5 percent and will likely trend down in the coming months as inflation continues to slow. Lower rates are good news for potential buyers and sellers alike.” It averaged 7.09% during the same period a year ago. Mortgage applications increased by nearly 17 percent last week as mortgage rates continued to fall, Mortgage Bankers Association data showed on Wednesday, enticing homeowners who had bought with high-rate mortgages in the last year to rush to refinance those loans. "The significant increase was led by a 35 percent jump in refinances and also included a 3 percent increase in purchase applications. While the refinances remain strong, we expect that the purchase market will continue to gain momentum as mortgage rates continue to fall,” MBA Chief Executive Bob Broeksmit said in a statement. Sign up here. https://www.reuters.com/markets/us/us-30-year-fixed-rate-mortgage-steadies-near-15-month-low-freddie-mac-says-2024-08-15/

2024-08-15 16:00

MOSCOW, Aug 15 (Reuters) - In Russia, there appears to be a new rule: Don't mention the war in relation to the rouble. Russian media and analysts in state-controlled banks have stayed largely silent on a possible link between the 9% fall of the rouble against the U.S. dollar and Ukraine's surprise attack on the Kursk region. The rouble's slide started on Aug. 6, the first day of the attack - the biggest by a foreign power on Russian sovereign territory since World War Two. Currency traders who spoke to Reuters on condition of anonymity due to the sensitivity of the situation said that foreign banks were the main sellers of the Russian currency. The rouble touched a 10-month low against the dollar and the lowest level against the yuan since June 24 in the Aug. 13 session. State banks mostly attributed the fall to economic factors. Analysts at state-owned Sberbank, by far Russia's biggest bank, blamed U.S. sanctions against Moscow's Stock Exchange, imposed on June 12, and reduced currency sales by exporters. "Exporters may have reduced the volumes of currency sales in recent days. This is due to the fact that the requirements for mandatory currency sales have become more lenient, and the tax and dividend periods have ended," Sberbank said in a note. FINANCIAL SHIELD The Russian central bank has remained silent on the rouble's fall. The Russian government did not respond to a request for comment. Leading Russian business media reported on the rouble's fall - but did not link it to the Kursk attack. Analysts quoted by the RBC business news portal attributed the fall to shrinking exports and reduced requirements for forex sales by exporters. The news was also absent from main Russian state television news and talk shows, as well as from the websites of state media outlets. The refrain from linking the rouble's fall to the events unfolding just 530 km (330 miles) southwest of Moscow illustrates a push within Russia to prevent bad economic news from reaching the wider public. Russia has sought to present the $2.0 trillion economy as an increasingly invincible stronghold of self-sufficiency standing up to the massive pressure of the West's sanctions, the most punitive ever imposed on a major economy. "Our finances are strong," Finance Minister Anton Siluanov said in a speech on Wednesday. "It is important for us to build this financial shield so that all the financial pressures that anyone wants to exert on us are deflected... This is exactly what is happening now," Siluanov said. One trader, who spoke on condition of anonymity, suggested that the intense rouble sales in recent days could also be linked to an upcoming stoppage of overseas money transfers by Austria's Raiffeisen Bank (RBIV.VI) , opens new tab. As the rouble started to rebound on Wednesday, some analysts tried to dismiss any linkage between the attack and the rouble's fall, while others predicted that it would soon stabilize. Linking the currency decline to the Kursk incursion, said economist Mikhail Belyaev, represented an approach that "in my opinion... has no relation to reality". Sign up here. https://www.reuters.com/markets/currencies/silence-reigns-russia-over-linking-rouble-fall-ukrainian-attack-2024-08-15/