2025-09-03 11:32
MAZAR DARA, Afghanistan, Sept 3 (Reuters) - Mir Salam Khan mourns the loss of his wife and three children in Afghanistan’s mountainous eastern province of Kunar, hit by an earthquake of magnitude 6 that crumbled thousands of homes. "We buried them with wooden planks and plastic sheets so the soil would not fall directly on the bodies," said the 65-year-old resident of the village of Mazar Dara. "That was all we could do." Sign up here. The shallow midnight tremor, Afghanistan's deadliest quake in years, killed more than 1,400 people and destroyed more than 5,000 houses, officials of the Taliban administration have said, but harsh weather and rugged terrain have hampered rescue work. Here the dead are usually wrapped in shrouds and placed in graves topped with cement slabs. With supplies scarce and many destroyed homes, however, survivors said they were forced to improvise, with wood and plastic picked out of the wreckage. "We have never witnessed such an earthquake in history," said Yunus Khan, 45, seated amid the rubble of his mud-brick home that traps two of his children, while three more were among the 12 of his family who died. "All belongings were lost, the children were martyred," he added, surrounded by homes with crumbling walls, their wooden beams sticking out of rubble where children sat silently. "It was such a quake that it gave no one a chance," said Khan. "With one jolt, the entire village was destroyed." Most survivors remain stranded among the ruins, burying their dead in graveyards filling with freshly dug plots for children and adults. Aid workers are just reaching the remote hamlets. A single tent, shared by half a dozen families, sagged in the rain as helicopters circled overhead to ferry the wounded to hospital. "Last night it rained and we had no shelter," Yunus said. "Five or six families are in one tent, there are no supplies. Even the bodies lay out in the rain, waiting to be buried." Farmer and livestock owner Namirullah, 30 joined about 50 neighbours in digging through rubble with their bare hands. "The martyrs are still trapped and the injured are so many," said the volunteer from the nearby village of Chapa Dara. "People have abandoned their homes and are living in cornfields and orchards, terrified as aftershocks come every few minutes." The defence ministry said the Afghan air force moved more than 1,900 people in 155 flights over two days, hundreds of wounded among them, as well as delivering 10,000 kg (22,000 lb)of supplies across the region. Hemmed in by mountains where the Indian and Eurasian tectonic plates meet, Afghanistan is no stranger to such devastation. A quake in 2022 killed about 1,000 people, and successive shocks in 2023 flattened villages in Herat. Four smaller tremors rattled the country this year. Each new disaster strikes a nation crippled by poverty, war and shrinking aid, with the United Nations estimating that half the population of more than 40 million needed assistance even before Sunday’s quake. Two days later, Salam was still waiting for the bodies of his son and daughter to be pulled from the ruins of his home. He and his neighbours used shovels and their hands in an effort made painfully slow without earthmoving machinery. "Two of my children are still under the rubble," he said. "We can do nothing." https://www.reuters.com/business/environment/afghan-earthquake-survivors-hunt-loved-ones-pull-planks-rubble-graves-2025-09-03/
2025-09-03 11:26
Nigeria's deal with TotalEnergies sets template for future gas deals New agreement aligns with Petroleum Industry Act, aims to boost Nigeria's gas economy Analysts caution on cost recovery and regulatory challenges in gas sector LAGOS, Sept 3 (Reuters) - Nigeria’s production-sharing contract with TotalEnergies (TTEF.PA) , opens new tab, its first guided by a new law designed to boost the OPEC member's gas production, will serve as a template for future deals, the oil regulator told Reuters on Wednesday. The country's Petroleum Industry Act adopted in 2021 recognised the distinct economics of oil and gas exploration and production and was followed by government incentives, such as tax credits and investment allowances for gas-only developments. Sign up here. The deal agreed by the French energy major and its local partner on September 1, covers oil and gas prospecting licences awarded last year for about 2,000 square km (772 square miles) in the Niger Delta Basin. “This new PSC (production-sharing contract) with TotalEnergies represents a policy shift, in line with the PIA, which aims to unlock Nigeria’s gas potential and support the transition to a gas-powered economy,” said Gbenga Komolafe, head of the Nigerian Upstream Petroleum Regulatory Commission. Komolafe said all new deepwater and frontier acreage production sharing contracts will likely adopt similar gas terms and it sets a model for dedicated gas development contracts. Africa's largest oil producer is seeking to boost the share of gas in its energy mix both for economic reasons and as a transition fuel to cleaner energy. Nigeria's daily gas output was 1.31 million barrel equivalent (BOE) in July, compared with 1.86 million barrels of crude and condensates. Its estimated 210.5 trillion cubic feet of proven gas reserves are comparable to crude reserves, highlighting the gas sector's potential. However, infrastructure and regulatory gaps have hampered gas development in the past and the country continues to flare large volumes of gas. In July, the flaring rate, albeit at a three-year low, still exceeded 7% of total production. While officials are optimistic that more deals and investment will follow under the new framework, some analysts remain cautious. “The real challenge lies in the detail of cost recovery, particularly the timing, scope, and administrative process,” said Ayodele Oni, a Lagos-based energy lawyer and partner at Bloomfield Law Firm. Mikolaj Judson, analyst at Control Risk said that for the new incentives to be meaningful, wider reforms were needed in the sector where in the past infrastructure shortfalls and insufficient regulation have discouraged investment. Otherwise, "investors will continue to face various risks in developing gas projects," he said in a note to Reuters. https://www.reuters.com/business/energy/nigerias-totalenergies-deal-marks-shift-gas-development-2025-09-03/
2025-09-03 11:25
LONDON, Sept 3 (Reuters) - There is early evidence that bond issuers and investors are making greater use of the euro, ING said in a report published on Wednesday to mark 100 days since ECB chief Christine Lagarde said the euro could become a viable dollar alternative. The report stressed that Europe needs to deliver credible reforms to support the euro's role as a global currency and that competing against the dollar would not be easy. Sign up here. Here are the ING report's key findings: WHAT THE REPORT SAYS Although the euro's share of global FX reserves held steady in Q1 at around 20%, year-on-year trends are positive and smaller reserve managers are emerging as new sources of demand for the euro. The euro's share of SWIFT international payments has stagnated so far this year but trade deals between the EU and countries such as India could see the currency used more in invoicing. And there has been some notable bond sales in euros by emerging markets, while foreign investors are playing an important role in buying additional bonds released into the market by the ECB's pull-back from bond-buying programs. WHY IT’S IMPORTANT The dollar's role as the world's No.1 reserve currency has been called into question this year by heightened policy uncertainty under U.S. President Donald Trump. With the deepest and most liquid capital markets globally, the dollar is unlikely to be replaced anytime soon. However, there is debate about who could benefit as sentiment towards U.S. markets turns, and the euro is a key contender. KEY QUOTE "It will rest on European politicians to make the euro zone an attractive investment environment and for euro-denominated assets to earn their fair share of global capital." "Now is an exceptional opportunity, but Christine Lagarde and Mario Draghi still have some work to do to convince European governments to think more boldly," ING said. CONTEXT Lagarde said in May that there was an opening for a 'global euro moment,' and the currency could become a viable alternative if governments strengthen the bloc's financial and security architecture. Mario Draghi, a former ECB chief and Italian prime minister, urged the EU in a 2024 report to forge a more coordinated industrial policy, make more rapid decisions and pursue massive investments to keep pace with the U.S. and China. BY THE NUMBERS Foreign investors bought around 186 billion euros worth of euro debt and roughly 46 billion euros of stocks between May and June, reinforcing support for the euro, ING said. Around 22% of euro zone government bonds are foreign-held – well below the 34% share for U.S. Treasuries – but the rise from 19% since the start of quantitative tightening shows foreigners absorbing bond sales and helping to contain a rise in yields, it added. https://www.reuters.com/business/early-signs-emerging-euros-beefed-up-global-status-ing-says-2025-09-03/
2025-09-03 11:25
Trump's attacks on Fed leadership has raised concern among central bankers globally Posen says Fed help should not be taken for granted Fed renewed liquidity lines with some major central banks European central bankers have privately discussed alternatives FRANKFURT, Sept 3 (Reuters) - The European Central Bank and its peers around the world should pool their reserves for U.S. dollar liquidity as Federal Reserve help cannot be guaranteed given President Donald Trump's attacks, the head of an influential think tank said. Adam Posen of the Peterson Institute for International Economics told an ECB conference on Wednesday it should not be taken for granted that a politicised Fed would lend dollars to foreign central banks in a crisis, as it did a few times since the 2007-2008 financial meltdown. Sign up here. He recommended that the ECB and its peers outside the United States pool their reserves in dollars in order to provide emergency liquidity to domestic banks if needed. This option has been raised by European central bankers behind closed doors. "Whether it's acknowledged publicly or not, there has to be thinking short term about alternative pooling of assets and swap lines and dollars among major central banks and governments," Posen said. "You will have to team with other central banks, and it's going to have to start being open... about having alternative swap lines," he told the conference hosted by ECB President Christine Lagarde. The Fed earlier this year renewed liquidity lines with a number of major central banks and has never suggested it would end these facilities. Central bankers who privately discussed such a move in the past said the main issue was with its size. The market for U.S. dollar bonds and loans issued outside the United States is worth around 25 trillion euros ($29 trillion), according to BIS data. All foreign central banks put together have dollar-denominated reserves of just 7 trillion euros. This meant that these alternative swap lines would only suffice to tackle a local, rather than global, crisis, Posen said in a conversation after the event. He expected regional arrangements such as the Chiang Mai Initiative of the Association of Southeast Asian Nations and the Arab Monetary Fund to play a greater role too. ECB supervisors have also told banks they watch their exposure to the dollar and other foreign currencies, fearing Fed swap lines might be withdrawn while surging economic conflicts may make markets more volatile. Posen said the ECB should be "thinking about getting certain systemic institutions out of dollar liquidity needs over the medium to long term". European University Institute professor Thorsten Beck told the conference that the ECB should also tackle the risk of euro zone payments relying on U.S. credit card providers Visa and Mastercard. The ECB is developing a digital euro to provide an alternative to those cards and to dollar-denominated stablecoins. ($1 = 0.8542 euros) https://www.reuters.com/business/finance/central-banks-urged-pool-dollar-reserves-fed-help-questioned-2025-09-03/
2025-09-03 11:17
Sept 3 (Reuters) - Futures tied to Canada's main stock index was flat on Wednesday as investors stayed cautious ahead of key economic data that could shape the Bank of Canada's interest rate decision later this month. Futures on the S&P/TSX index gained 0.01% to 1,696.30 points by 06:50 a.m. ET (1050 GMT). The benchmark index edged up to a record high on Tuesday. Sign up here. Investors will closely watch Canada's unemployment data due on Friday for potential signals that could guide the central bank's rate-cut path later this month. The BoC has kept rates steady at 2.75% at its last three meetings since March. Data showed on Tuesday, Canada's manufacturing sector contracted in August for the seventh straight month as U.S. tariffs weighed on export demand. Meanwhile, Wall Street closed sharply lower in the first trading session of September as investors weighed a court ruling suggesting most of U.S. President Donald Trump's tariffs may be illegal, while a spike in longer-dated Treasury yields pressured equities. In commodities, gold surged to a fresh record high and copper prices were steady, while oil prices fell by more than 1% on Wednesday. In corporate news, Canadian oil and gas producer Strathcona Resources (SCR.TO) , opens new tab said it has purchased additional 6.66 million common shares of rival MEG Energy (MEG.TO) , opens new tab for about C$190.8 million ($138.09 million). Focus will also be on U.S. job openings data for July later in the day. FOR CANADIAN MARKETS NEWS, CLICK ON CODES: TSX market report Canadian dollar and bonds report CA/ Reuters global stocks poll for Canada , Canadian markets directory https://www.reuters.com/markets/europe/tsx-futures-muted-focus-remains-weeks-economic-data-2025-09-03/
2025-09-03 11:13
LONDON, Sept 3 (Reuters) - The British pound and euro edged higher on Wednesday, as investors paused to assess the impact of rising borrowing costs after a surge in bond yields. Long-dated government borrowing costs from Japan to Britain touched fresh multi-year highs on Wednesday on nagging concerns over the fiscal health of some of the world's biggest economies, although a degree of calm was returning after a sharp sell-off. Sign up here. Similarly, the pound last traded 0.1% higher at $1.3409, recouping some of its more than 1% tumble on Tuesday. Against the euro , sterling flattened at 86.86 pence, after falling 0.6% on Tuesday. In the gilt market, Britain's 30-year borrowing costs rose to their highest levels since 1998. "Yesterday’s rise in EUR/GBP highlights just how sensitive the pound is to yield increases, but we take a conservative view and don’t expect the pound to fall much further on gilt moves alone," said Francesco Pesole, FX strategist at ING, adding that long-dated European bonds were also sold off this week. Investors will be waiting to hear Bank of England Governor Andrew Bailey, who is due to answer questions from the House of Commons' Treasury Committee at 1315 GMT. Meanwhile, the euro steadied against the dollar at $1.1651, after falling 0.6% on Tuesday. A survey showed on Wednesday that the euro zone economy kept expanding at a snail's pace in August, as weaker services growth offset improved manufacturing output. The dollar edged 0.08% lower to 98.30 against a basket of currencies , having gained 0.66% on Tuesday. Investors also had their eye on a slew of U.S. labour market data due this week, headlined by Friday's nonfarm payrolls report, for more clues on rate cut trajectories. JAPANESE POLITICS In Japan, the yen was down 0.2% at 148.68 per dollar, having slid 0.8% on Tuesday after the ruling party's Secretary-General Hiroshi Moriyama, a close aide to Prime Minister Shigeru Ishiba, said he intended to resign. That could potentially affect the fate of Ishiba, who has resisted calls to quit over his party's defeat in an upper house election in July. "On the surface, political uncertainty, and the possibility that Prime Minister Shigeru Ishiba might resign in the coming days or weeks, is having a debilitating impact on the yen," said Kit Juckes, Societe Generale's chief global FX strategist. Sanae Takaichi, one of the leading contenders to replace Ishiba, is known for favouring low domestic interest rates. https://www.reuters.com/world/africa/euro-sterling-steady-traders-assess-impact-rising-borrowing-costs-2025-09-03/
