2025-02-03 10:50
MANILA, Feb 3 (Reuters) - The Philippines, among the world's largest rice importers, declared on Monday a food security emergency to bring down the cost of rice, which it said has stayed elevated despite lower global prices and a reduction in rice tariffs last year. The declaration, which was widely expected, will allow the government to release buffer stocks to help bring down retail prices of the national staple, Agriculture Secretary Francis Tiu Laurel said in a statement, adding it would remain in effect until the price situation improves. Despite efforts to liberalise rice imports and reduce tariffs, the agriculture department said, the domestic market has been slow to respond, with retail prices surpassing expectations. Half of the 300,000 metric tons buffer stock the National Food Authority currently holds could be released over the next six months to ensure supply for emergencies and disaster response, it added. The annual rate of increase in rice prices in the Philippines hit a 15-year high of 24.4% in March last year, but has since moderated to 0.8% in December, helping keep overall inflation for 2024 within the government's 2% to 4% target. Last year, the Philippines lowered tariffs on rice and extended existing tariff cuts on some other commodities to combat inflation and ensure ample supply. Sign up here. https://www.reuters.com/world/asia-pacific/philippines-declares-food-security-emergency-tame-rice-prices-2025-02-03/
2025-02-03 10:45
SINGAPORE, Feb 3 (Reuters) - Asia's high sulphur fuel oil (HSFO) market pared back on Monday after rallying higher amid recent volatility, while very low sulphur fuel oil (VLSFO) was rangebound from the previous week. Prompt intermonth spreads for 380-cst HSFO narrowed to $9 a ton on Monday, after widening to over $10 a ton on Friday, based on data from market sources. Cracks also retreated amid sell-offs and a stronger crude. The prompt 380-cst HSFO/Brent crack closed lower at a discount near $1.85 a barrel on Monday, after hitting multi-year highs last week, based on LSEG data. Market sources expect trading to remain choppy for the high-sulphur markets due to uncertain supply factors. Spot premiums for HSFO inched lower for now, as more competitive offers emerged on Monday. Meanwhile, VLSFO was largely rangebound in thin activity. The hi-5 fuel oil spread recovered after narrowing to its lowest premium in over five years. Front-month March contract rebounded to above $85 a metric ton on Monday, LSEG data showed. Meanwhile, India's HPCL offered more HSFO for loading in February via a tender that closes on Tuesday, based on market sources. TRUMP TARIFFS - U.S. President Donald Trump ordered 10% tariffs on Canadian oil and 25% tariffs on Mexican crude. This could offer European and Asian refineries a competitive advantage against their U.S. rivals, analysts and market participants told Reuters. - The new tariffs imposed by U.S. President Donald Trump on imports from Canada, Mexico, and China are likely to have a limited near-term impact on global oil and gas prices, Goldman Sachs said in a note. OTHER NEWS - Oil prices jumped on Monday after U.S. President Donald Trump imposed tariffs on Canada, Mexico and China, raising fears of crude supply disruption from the two biggest suppliers to the U.S., but the prospect of lower fuel demand capped gains. - Ukraine struck energy facilities in southern Russia with dozens of drones on Monday, triggering fires at a major oil refinery and gas processing plant and disrupting flights from the Volga to the Caucasus Mountains, Russian and Ukrainian officials said. - Austria's OMV and Abu Dhabi National Oil Company said on Friday they are considering a joint venture to acquire Canada's Nova Chemicals if its owner, the Abu Dhabi sovereign wealth fund Mubadala, agrees. - Guyana's government plans to issue two licenses this year for oil and gas projects, Energy Minister Vickram Bharrat told Parliament. WINDOW TRADES - 180-cst HSFO: No trade - 380-cst HSFO: No trade - 0.5% VLSFO: No trade ASSESSMENTS Sign up here. https://www.reuters.com/markets/commodities/asia-fuel-oil-hsfo-retreats-volatile-market-activity-2025-02-03/
2025-02-03 10:40
Feb 3 (Reuters) - Ukraine struck energy facilities in southern Russia with dozens of drones on Monday, triggering fires at a major oil refinery and a gas processing plant and disrupting flights from the Volga to the Caucasus Mountains. Following is a list of oil refineries and petrochemical and other facilities attacked in the past month: VOLGOGRAD Baza, a Russian news Telegram channel that is close to Russia's security services, said a series of explosions were heard in the area around a refinery operated by Russia's second-largest oil producer Lukoil (LKOH.MM) , opens new tab in Volgograd on Feb. 3. The refinery is the largest in southern Russia. The plant has production capacity of some 300,000 barrels per day. It was targeted by Ukrainian drones several times in January as well. In 2023 the Volgograd refinery processed 13.508 million metric tons of oil, or 4.9% of the total refining volume at Russian refineries. ASTRAKHAN GAS PROCESSING PLANT Baza and other Russian Telegram channels said Ukraine attacked a gas processing plant near Astrakhan on Feb. 3. The local governor put out a video on a Telegram channel of him inspecting the plant and a manager telling him that the damage to a gas condensate processing unit was being evaluated. The plant, controlled by gas giant Gazprom (GAZP.MM) , opens new tab, is capable of processing around 8,340 metric tons of gas condensate per day. The plant produced 703,000 tons of gasoline, or 1.6% of Russia's total, as well as 492,000 tons of diesel (0.6%) and 299,000 tons of fuel oil (0.7%) in 2023. SIBUR-KSTOVO Russian petrochemicals giant Sibur said on Jan. 29 that shipments of products from its Kstovo plant had been suspended after a Ukrainian drone attack. It produces more than 770,000 tons of olefins and 130,000 tons of aromatic compounds per year. The plant's products are shipped to further processing, where they are used to make materials for housing and communal services, construction, the automotive industry, packaging, medicine and other industries. RYAZAN Russia's Ryazan oil refinery, owned and run by Rosneft, was set ablaze after a drone attack on Jan. 24. According to two industry sources, the refinery suspended operations after the attack. The plant, with installed capacity of around 350,000 bpd, refines about 12.7 million tons of Russian crude a year (around 317,000 bpd), or 5.8% of Russia's total refined crude, according to industry sources. In 2024, it produced 2.2 million tons of gasoline, 3.4 million tons of diesel, 4.3 million tons of fuel oil and 1 million tons of jet fuel, according to a source-based data. ANDREAPOL OIL PUMPING STATION A Ukrainian drone attack hit Russia's Andreapol oil pumping station, part of the oil export route via the Baltic Sea port of Ust-Luga, causing a fire and oil products to leak, a source in the Security Service of Ukraine said on Jan. 29. The station is a part of the Baltic Pipeline System-2 network of oil pipelines, connecting the Soviet-built Druzhba pipeline with the Baltic Sea ports. Sign up here. https://www.reuters.com/world/europe/russian-energy-facilities-targeted-by-ukraines-drones-2025-02-03/
2025-02-03 10:21
MUMBAI, Feb 3 (Reuters) - The Indian rupee fell to a record low on Monday after U.S. President Donald Trump slapped tariffs on imports from the country's three biggest trade partners, stoking fears of a trade war that rattled global financial markets. The rupee declined to 87.28 per U.S. dollar before closing at 87.1850, down by nearly 0.7%, its biggest single-day percentage loss since Jan 13. Asian currencies also slumped after the dollar rallied on Trump's sweeping tariffs that impose a 25% levy on Mexican and Canadian imports into the U.S., while those from China will attract a 10% charge. The tariffs kick in on Tuesday. Asian and European stocks fell on Monday, while U.S. equity futures pointed sharply lower. The Mexican peso tumbled more than 2% to touch its lowest in nearly three years, while the offshore Chinese yuan fell 0.3%. While intermittent dollar sales from state-run banks helped limit the rupee's decline, the absence of stern intervention by the central bank was seen by many traders as an affirmation that it is allowing the rupee to move in line with its peers. The Reserve Bank of India "will allow some more adjustment in alignment with peers," Shubhada Rao, founder of QuantEco Research, told the Reuters' Trading India forum . The "heavy intervention seen in last 1-2 years is unlikely to be repeated." Amid persistent headwinds and expectations of the central bank easing its grip, the rupee's 1-month implied volatility has averaged about 3.5% so far in 2025, up from the average of 2% last year. News on U.S. tariffs is expected to dominate cues for currency markets this week. "Unless Donald Trump surprises with a very last-minute de-escalation in tariffs (unlikely) expect DXY (dollar index) to stay bid near this year's high," ING Bank said in a note. The dollar index was last quoted at 109.7, up over 1% on the day. Sign up here. https://www.reuters.com/markets/currencies/rupee-sinks-lifetime-low-trump-tariffs-unnerve-global-markets-2025-02-03/
2025-02-03 10:18
MOSCOW, Feb 3 (Reuters) - Saudi Arabia and the United Arab Emirates are seen by Russia as possible venues for a summit between U.S. President Donald Trump and Russian President Vladimir Putin, two Russian sources with knowledge of the discussions told Reuters. Trump has said he will end the war in Ukraine as soon as possible and said he is ready to meet with Putin. Putin congratulated Trump on his election and stated he is ready to meet Trump to discuss Ukraine and energy. Russian officials have repeatedly denied any direct contacts with the U.S. about preparations for a phone call between Trump and Putin, which would precede an eventual meeting later this year. However, senior Russian officials have visited both Saudi Arabia and the UAE in recent weeks, according to the Russian sources, who spoke on condition of anonymity due to the sensitivity of the situation. One source said there was still some opposition to the idea in Russia as some diplomats and intelligence officials were pointing to the close military and security links that both the Kingdom and the UAE have with the United States. Saudi Arabia and the UAE did not respond to requests for comment. The Kremlin declined comment. But both Trump and Putin have developed friendly relations with rulers of Saudi Arabia and the UAE. Trump said on Sunday that his administration had "meetings and talks scheduled with various parties, including Ukraine and Russia." When asked about those remarks, Kremlin spokesman Dmitry Peskov said that contacts were 'apparently planned'. Saudi Crown Prince Mohammed bin Salman was the first foreign head of state Trump called after taking office. He described the Crown Prince as "a fantastic guy" during his speech via video link to an audience at the World Economic Forum in Davos. Putin, who visited Saudi Arabia and the UAE in 2023, said last September that he was grateful to Mohammed bin Salman for helping to organise the biggest U.S.-Russian prisoner swap since the Cold War. Putin and Mohammed bin Salman, also known as MbS, have fostered a close personal relationship since 2015 when the prince visited Russia for the first time. PUTIN AND MBS The relationship has helped the leaders of the world's two biggest oil exporters conclude and maintain the OPEC+ energy deal. Trump called on Saudi Arabia and OPEC to lower oil prices, a potential bargaining chip for Russia in the talks. Both Mohammed bin Salman and UAE President Mohammed bin Zayed Al Nahyan have maintained neutrality throughout the Ukraine war, refraining from joining the West in criticizing and sanctioning Russia. Both leaders have also maintained regular contacts with Ukrainian President Volodymyr Zelenskiy. Mohammed bin Zayed Al Nahyan visited Russia several times during the war, saying during his last visit in October 2024 that he was ready to support efforts to find peace in Ukraine. The UAE also successfully mediated prisoner exchanges. Neither country is a member of the International Criminal Court, which issued an arrest warrant for Putin, preventing his visits to a number of countries, including Brazil and South Africa. At the current stage, the Russian sources dismissed Turkey, a NATO member that hosted failed peace talks between Russia and Ukraine in March 2022, as a possible venue. Russian analyst Fyodor Lukyanov, the influential scientific director for the Valdai Discussion Club, whose members regularly meet Putin, said that Trump and Putin do not have much choice. "Almost the entire West is involved on the side of Ukraine. Therefore, all the traditional venues where such things used to take place, like Helsinki, Geneva, and Vienna, are not suitable," he was quoted by official TASS news agency as saying. Lukyanov noted that while Saudi Arabia and the UAE play a very important role, both are very close U.S. allies, which raises some questions from the Russian side. "However, as a venue for negotiations, it is probably quite conceivable," he added. Lukyanov declined to comment to Reuters on this story. Sign up here. https://www.reuters.com/world/saudi-arabia-uae-seen-possible-venues-trump-putin-summit-two-russian-sources-say-2025-02-03/
2025-02-03 07:58
Feb 3 (Reuters) - U.S. President Donald Trump's sweeping tariffs on Mexico, Canada and China over the weekend, impending U.S. jobs data and assessment of the new AI landscape ahead of major tech firms' corporate results set the tone for financial markets. The Bank of England has an interest rate decision, and European lenders will also publish their results. Here's your guide to the week ahead in global markets from Kevin Buckland in Tokyo, Saqib Ahmed and Lewis Krauskopf in New York, and Tommy Wilkes and Amanda Cooper in London. 1/T DAY From bond investors and currency traders to Fed officials and foreign powers, everybody is evaluating the potential fallout of Trump's tariffs. Trump on Saturday imposed 25% tariffs on Mexican and most Canadian imports and 10% on goods from China starting on Tuesday. Canada has said it would respond with 25% tariffs against $155 billion of U.S. goods. Mexico has also said it plans retaliatory tariffs and China has vowed countermeasures. The response from the world's second biggest economy will be in focus for markets as China returns this week from Lunar New Year festivities. And in Europe, investors are reassessing the view that heightened trade tensions could be avoided. 2/SHOULD I STAY OR SHOULD I GO? The monthly U.S. jobs report on Feb. 7 comes as investors assess the prospects for further interest rate cuts and how dramatic new Trump administration policies could reshape the labour market. December's blowout jobs report raised doubts about whether the Fed would have room to ease monetary policy further and sent Treasury yields shooting higher. Encouraging inflation data did calm market fears, but a hot January jobs report could change all that. Fed Chair Jerome Powell said he was in no rush to cut rates again until inflation and jobs data make it appropriate. The big unknown though is Trump's labour market agenda, including an immigration crackdown and plans to slash the federal workforce, with the White House offering 2 million federal employees financial incentives to quit. 3/TECH-TONIC SHIFTS Investors have long speculated about what might eventually slow the AI-investment steamroller and now have a new perspective to consider: The emergence of China AI sensation DeepSeek, which has overturned assumptions about the computing power and investment needed to create state-of-the-art models. This shift pummelled Nvidia's stock, inflicting a record loss in market value. But DeepSeek is also challenging the broader dominance of U.S. technology, raising questions about the competitive advantages of the top seven tech stocks, dubbed the Magnificent Seven. With upcoming earnings reports from Mag 7 members Alphabet (GOOGL.O) , opens new tab on Tuesday and Amazon (AMZN.O) , opens new tab on Thursday, investors will have the chance to determine whether recent AI market volatility is a warning of future challenges or an opportunity to reinvest in this rapidly growing sector. 4/IN FOR A SQUEEZE European bank earnings pick up pace this week, with French lenders BNP Paribas (BNPP.PA) , opens new tab, Societe Generale (SOGN.PA) , opens new tab and Credit Agricole , Switzerland's UBS (UBSG.S) , opens new tab and Spain's Santander (SAN.MC) , opens new tab all reporting fourth-quarter numbers. Most lenders are expected to have still wrung enough extra cash out of higher interest rates - helped by soaring investment banking revenues - to boost their profits and keep a two-year-long share price rally rolling on. Investors will listen for any hints that a recent burst of deal-making has further to run. Still, challenges loom. Falling interest rates mean pressure on the difference between what banks earn on loans and what they pay on deposits, and there is economic weakness at home just as the U.S. economy powers ahead. Germany's Deutsche Bank (DBKGn.DE) , opens new tab gave some cause for concern when it reported a sharp drop in profits and ditched a key goal on costs, sending its shares lower. 5/DECISION TIME The Bank of England meets on Thursday to set interest rates. Markets aren't quite fully pricing in a quarter-point cut, but economists seem to think that is the likely outcome. UK data is weakening - multiple measures of employment show cracks appearing in the labour market, and consumer spending unexpectedly shrank in the key holiday shopping period. Growth flatlined in the third quarter of 2024 and the BoE expects the same in the last one. Several banks see the British economy struggling to expand by even 1% this year, in spite of finance minister Rachel Reeves' plans to revitalise growth. And there's the matter of the bond market turmoil earlier this month, which pushed the government's 10-year borrowing costs to their highest since 2008. Gilt yields have since retreated, but remain uncomfortably above 4.5% - more than any G10 economy bar New Zealand. Sign up here. https://www.reuters.com/business/take-five/global-markets-themes-graphic-2025-01-31/
