2024-09-27 21:37

Sept 27 (Reuters) - Mali's military-led authorities have arrested four employees of Canadian miner Barrick Gold (ABX.TO) , opens new tab, two sources said on Friday. All four are senior Malian employees, one of the sources said. Barrick is the world's second-largest gold miner and one of Mali's top gold producers, but like other international miners it has been under growing pressure in the West African country since a junta seized power in 2020. A government official based in the region and speaking on condition of anonymity said four Barrick employees had been arrested for alleged financial crimes. Barrick declined to comment. The Malian authorities could not immediately be reached for comment. A second source, who works in the Malian mining sector, said the four people were arrested on Wednesday and were senior Malian employees at Barrick. Mali is one of Africa's biggest gold producers and the junta has sought to channel a greater share of gold revenue to state coffers including via a new mining code that allows the government to increase its ownership of gold concessions. Its shake-up of the sector is part of a wider policy shift that has seen the authorities cut off long-standing ties with Western allies such as France and seek closer diplomatic, security, and commercial relations with Russia. Last year, Mali signed an agreement with Russia to build a gold refinery in the capital Bamako and reached a deal with Russian state nuclear energy company Rosatom to explore for minerals and produce nuclear energy. Sign up here. https://www.reuters.com/world/africa/mali-junta-arrests-four-employees-barrick-gold-say-sources-2024-09-27/

2024-09-27 21:02

NEW YORK, Sept 27 (Reuters) - A U.S. Midwest high-voltage transmission line that faced lengthy environmental pushback entered service this week some 13 years after grid operators approved the project, developers said on Friday. The Cardinal-Hickory Creek 345,000-volt transmission line, which ships clean power from Iowa to Wisconsin, came to exemplify the struggles of constructing U.S. power lines at a time of swiftly rising electricity demand. "Following years of work, including numerous opportunities for public input, extensive regulatory and environmental review, and construction, the entire Cardinal-Hickory Creek line has been placed in service," said Dusky Terry, president of the line's co-owner ITC Midwest. ATC and Dairyland Power Cooperative are also partial owners of the 102-mile project. As of June, 160 renewable generation projects in the upper Midwestern states totaling nearly 25 gigawatts of capacity were dependent upon completion of the Cardinal-Hickory Creek line, the co-owners said. The administration of U.S. President Joe Biden applauded the completion of the line and lauded it as a crucial step towards bringing clean power to the Midwest. "It takes perseverance to build the infrastructure we need and the Cardinal Hickory Creek Project proves that we can get the job done by bringing clean, affordable power to Wisconsin and Iowa," said John Podesta, senior advisor to the president for international climate policy. In May, a U.S. appeals court lifted a lower court's order blocking a land exchange needed before developers could build the final stretch of the major clean-energy transmission line through a Mississippi River wildlife refuge. Sign up here. https://www.reuters.com/business/energy/contested-midwest-transmission-line-starts-up-13-years-after-approval-2024-09-27/

2024-09-27 20:50

DOVER, Delaware Sept 27 (Reuters) - U.S. President Joe Biden said on Friday his opposition to Nippon Steel's $14.9 billion bid for U.S. Steel (X.N) , opens new tab hadn't changed despite a decision by his administration to extend a national security review of the proposed tie-up. “I haven’t changed my mind,” he told reporters, when asked if the extension indicated a change of heart. Nippon Steel and U.S. Steel did not immediately respond to requests for comment. The remarks threw cold water on hopes by deal supporters that the proposed tie-up could get a green light from the Committee on Foreign Investment in the United States, which reviews foreign investments for national security risks. The proposed merger appeared set to be blocked when CFIUS alleged on Aug. 31 the transaction posed a risk to national security by threatening the steel supply chain for critical U.S. industries, as exclusively reported by Reuters. But a move reported by Reuters earlier this month to delay a decision on the politically sensitive merger until after the Nov. 5 presidential election gave hope to proponents of the tie-up that it might yet win approval. Biden, as well as his Vice President and Democratic presidential nominee Kamala Harris, and Republican challenger Donald Trump, have said U.S. Steel should remain American-owned. The company is headquartered in Pennsylvania, a hotly contested swing state in the November presidential election. The United Steelworkers Union vehemently opposes the deal and both parties have sought to woo union voters. In response to CFIUS's finding of an alleged national security risk, Nippon Steel wrote a 100-page response letter pledging to invest billions of dollars in U.S. Steel facilities that otherwise would have been idled, "indisputably" allowing it to "maintain and potentially increase domestic steelmaking capacity in the United States." The company also reaffirmed a promise not to transfer any U.S. Steel production capacity or jobs outside the U.S. and said would not interfere in any of U.S. Steel's decisions on trade matters, including decisions to pursue trade measures under U.S. law against unfair trade practices. Sign up here. https://www.reuters.com/markets/deals/biden-says-he-hasnt-changed-his-mind-nippon-steel-deal-2024-09-27/

2024-09-27 20:45

U.S. PCE stands at 2.2% in Aug Russell 2000 index up 0.67% Bristol-Myers gains after schizophrenia drug approval Costco slips after Q4 revenue misses estimates Indexes: Dow up 0.33%, S&P 500 down 0.13%, Nasdaq down 0.39% Sept 27 (Reuters) - The blue-chip Dow Jones Industrial Average closed at a record high as a subdued inflation report stoked hopes for more Federal Reserve rate cuts, which also boosted small-cap stocks and enabled Wall Street's three main indexes to post weekly gains. The technology-heavy Nasdaq slipped for the day while the S&P 500 edged slightly lower, but both indexes stayed close to recent record highs. “The market at this point..(is) pretty much pricing in a soft landing, and pricing in that we have defeated inflation, and that the Fed will be able to lower rates without causing a bunch of harm to the economy”, said Liz Young Thomas, head of investment strategy at SoFi in New York. The Commerce Department reported a moderate rise in consumer spending while inflation pressures continued to ease. Separately, the University of Michigan's final September reading on consumer sentiment came in at 70.1, surpassing economists' expectations of 69.3, according to a Reuters poll. The Dow Jones Industrial Average (.DJI) , opens new tab rose 137.89 points, or 0.33%, to 42,313.00, the S&P 500 (.SPX) , opens new tab lost 7.20 points, or 0.13%, to 5,738.17 and the Nasdaq Composite (.IXIC) , opens new tab lost 70.70 points, or 0.39%, to 18,119.59. The Russell 2000 index (.RUT) , opens new tab, which tracks small caps that fare better in a low-rate environment, gained 0.67% to a one-week high. Shares of Nvidia (NVDA.O) , opens new tab dropped 2.17%, weighing on the technology-heavy Nasdaq. Investors now slightly favor a 50-basis-point cut at the Fed's next meeting with a 52.1% chance, up from a coin toss before the data, as per the CME Group's FedWatch Tool. Cooling price pressures prompted the Fed to cut rates by 50 bps last week. Focus will now shift to a slew of labor market reports due next week. Among individual stocks, Bristol-Myers Squibb (BMY.N) , opens new tab added 1.58% after the U.S. FDA approved its schizophrenia drug. Costco Wholesale (COST.O) , opens new tab lost 1.76% after posting downbeat fourth-quarter revenue. U.S.-listed shares of Chinese firms such as Alibaba rose 2.15%, PDD Holdings (PDD.O) , opens new tab climbed 4.67% and NetEase gained 2.65% after China's central bank lowered interest rates and injected liquidity into the banking system. The optimism extended to miners, with Arcadium (ALTM.N) , opens new tab gaining 2.13%, and U.S.-listed shares of BHP also adding 1.81%. Advancing issues outnumbered decliners by a 1.82-to-1 ratio on the NYSE. There were 605 new highs and 31 new lows on the NYSE. The S&P 500 posted 42 new 52-week highs and no new lows while the Nasdaq Composite recorded 74 new highs and 65 new lows. Volume on U.S. exchanges was 11.50 billion shares, compared with the 11.87 billion average for the full session over the last 20 trading days. Sign up here. https://www.reuters.com/markets/us/futures-slip-investors-await-key-inflation-report-2024-09-27/

2024-09-27 20:28

Sept 30 (Reuters) - Some 45,000 union workers could walk off the job at seaports on the U.S. East and Gulf Coasts on Oct. 1, cutting off vital trade arteries just weeks ahead of the nation's presidential election. A JPMorgan analysis projected that a strike could cost the U.S. economy $5 billion daily. The strike could hit 36 ports that handle about one-half of U.S. ocean imports. That could affect availability of a range of goods from bananas to clothing to cars shipped via container, while creating weeks-long backlogs at ports. It could also stoke shipping cost increases that may be passed on to voters already frustrated with housing and food inflation, according to logistics experts. WHAT'S THE ISSUE? The International Longshoremen's Association (ILA) union representing workers at ports from Maine to Texas and the United States Maritime Alliance employer group appear to have hit an impasse over pay. The current six-year contract expires at midnight on Sept. 30. A strike at all East Coast and Gulf of Mexico ports would be the first for the ILA since 1977. The White House said it is not trying to help broker a deal, as it did last year during West Coast talks, and a Biden administration official has said the president would not use his federal powers to block a strike. A widespread and lengthy strike could cause shortages and cost increases across a broad range of industries. WHAT DO LONGSHOREMEN DO? Longshoremen, also referred to as stevedores, handle cargo from incoming ships. They mostly work on container ships, but also do some work with car carriers and cruise ships. They operate cranes that pluck containers from ships to "lashing," securing cargo containers to prevent them from falling off during transit, and process paperwork. AUTOS, MACHINERY AND PARTS Ports covered by the contract handled $37.8 billion worth of vehicle imports during the 12 months ended June 30, 2024, according to S&P Global Market Intelligence. The Port of Baltimore, Maryland, leads the nation in car shipments. Auto parts are also a key import on the East Coast and Gulf of Mexico, with shipments from Europe more difficult to reroute than those from China, logistics experts said. The ports also lead the U.S. in shipments of machinery, fabricated steel and precision instruments, coming in at $97.4 billion, $16.2 billion and $15.7 billion, respectively, S&P Global Market Intelligence data showed. AGRICULTURE AND PHARMACEUTICALS 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, according to the American Farm Bureau Federation. 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 Farm Bureau said. Three-quarters of the nation's banana imports from countries like Guatemala and Ecuador land at ports on the East and Gulf Coasts, said Jason Miller, interim chair of Michigan State University's department of supply chain management. Separately, the U.S. imports coffee and cocoa in large volumes and exports cotton. A strike also would affect container exports of soybeans, soybean meal and other products and would have a significant impact on chilled or frozen meat and eggs, said Mike Steenhoek, executive director of the Soy Transportation Coalition. The $18-billion-a-year U.S. beef and pork export market and the $5.8 billion poultry and egg export sector relies on refrigerated containers that cannot sit idle for long. About 45% of all waterborne U.S. pork exports and 30% of beef exports were shipped via East Coast and Gulf Coast ports in the first seven months of this year, said U.S. Meat Export Federation spokesperson Joe Schuele. More than a quarter of all U.S. egg and egg product exports and around 70% of all poultry meat exports are shipped from ports along the East and Gulf Coasts, according to Customs data and the USA Poultry & Egg Export Council. The affected ports also handle more than 91% of containerized imports and 69% of containerized exports of U.S. pharmaceutical products, according to Everstream Analytics. More than one-third of containers departing the U.S. with lifesaving medications leaves from the port in Norfolk, Virginia, while nearly one-third of containerized pharmaceutical imports enter the country through the port in Charleston, South Carolina. CONSUMER GOODS, ENERGY, MILITARY AND CRUISES Retailers account for roughly half of all container volumes. Many U.S. retailers already have rushed in shipments of year-end holiday goods. The ports that would be affected by a potential strike bring over half of the nation's knitted and non-knitted apparel, valued at $32.8 billion combined, as well furniture valued at $23.4 billion, according to S&P Global Market Intelligence. Though the Gulf Coast ports of Houston and New Orleans are major oil and gas shipment hubs, those commodities would remain largely unaffected by a strike involving more labor-intensive container cargo. The same applies to coal exports from Norfolk, Virginia, experts said. The ILA, however, has pledged to handle military cargo and to work passenger cruise ships during a strike. HIGHER COSTS, BIG DELAYS In broad terms, a strike would raise costs for shipping while also imposing lengthy delays. The top five ports in the negotiating group - New York and New Jersey; Savannah, Georgia; Houston; Norfolk; and Charleston - handled more than 1.5 million 20-foot equivalent units (TEUs) valued at $83.7 billion in August, according to John McCown, senior fellow at the Center for Maritime Strategy. About two-thirds of that cargo was inbound, while the remainder was outbound, he said. Trade disruptions from a work stoppage would begin immediately, causing supply chain problems, logistics experts warned. Analysts at Sea-Intelligence, a Copenhagen-based shipping advisory firm, estimated that it could take anywhere from four to six days to clear the backlog from a one-day strike. Maersk, one of the largest providers of ocean transportation and a member of the employer group, warned that a one-week shutdown could require up to six weeks of recovery time, "with significant backlogs and delays compounding with each passing day." Sign up here. https://www.reuters.com/world/us/bananas-cars-clothes-us-port-labor-dispute-threatens-range-products-2024-09-25/

2024-09-27 20:26

Sept 27 (Reuters) - U.S. natural gas futures jumped about 5% to a 14-week high on Friday as Hurricane Helene battered the U.S. Southeast after causing Gulf of Mexico producers to cut output and knocking out power to millions of customers in Florida, Georgia and the Carolinas. Energy traders noted that prices were also supported as the amount of gas flowing to Venture Global's Plaquemines LNG export plant in Louisiana was on track to match a high of around 35 million cubic feet per day that it hit in mid-August. That is still a very small amount of gas. The first phase of the Plaquemines project will have the capacity to turn about 1.8 billion cubic feet per day of gas into LNG. Analysts have said the plant could start producing LNG in test mode over the next month or so. Officials at Venture Global were not immediately available for comment. Another factor analysts have noted that has supported prices in recent weeks was that storage injections in July, August and so far in September were at record lows, according to federal energy data going back to 1997. That is because many producers cut output earlier this year after average spot monthly prices at the U.S. Henry Hub benchmark in Louisiana fell to a 32-year low. On its first day as the front-month, gas futures for November delivery on the New York Mercantile Exchange rose 14.9 cents, or 5.4%, from where they traded on Thursday to settle at $2.902 per million British thermal units (mmBtu) on Friday, their highest close since June 18. That, however, was up about 12% from where the less expensive October contract closed when it was still the front-month on Thursday. That expiration-caused price increase pushed the front-month back into technically overbought territory for the third time this week after hitting that level on Monday and Wednesday. For the week, the contract was up about 19%, putting it on track for a fifth week of gains for the first time since April 2022. During that time, the front-month has gained about 43%. The U.S. National Hurricane Center forecast the remnants of Helene, now a tropical depression, would remain over Tennessee and Kentucky over the weekend. There were currently about 4.6 million homes and businesses without power, mostly in Florida, Georgia and the Carolinas, from Helene. That is down from around 5.2 million affected by the storm as utilities in Florida, Georgia and South Carolina have been able to restore service to some customers since the storm slammed into the Florida Panhandle late Thursday. Although storms are more likely to reduce gas prices and demand through power outages and shutting of liquefied natural gas export plants, analysts said this storm was on track to miss the LNG plants. That means demand for gas from those LNG export plants should remain high at the same time that some Gulf Coast producers have cut output. The U.S. Bureau of Safety and Environmental Enforcement said that about 18%, or 0.3 bcfd, of gas production in the U.S. Gulf of Mexico was still shut-in for Helene. More than 75% of U.S. gas production still comes from big inland shale basins like Appalachia in Pennsylvania, West Virginia and Ohio and the Permian in West Texas and eastern New Mexico, so most of the country's gas output should remain safe from the storm. Sign up here. https://www.reuters.com/business/energy/us-natgas-prices-jump-5-14-week-high-helene-batters-us-southeast-2024-09-27/