2025-01-14 12:36
Jan 14 (Reuters) - Slovakia's opposition parties will call a no-confidence vote against the government, a party chief said on Tuesday, accusing Prime Minister Robert Fico of dragging foreign policy closer to Russia while failing to tackle problems at home. Fico's ruling leftist-nationalist coalition has become shakier in recent months, with its majority shrinking to 76 out of 150 seats in parliament. Fico is facing dissent from some junior party lawmakers and also disputes among his partners. It was not immediately clear when the vote would take place. The opposition would need a majority to win it, an outcome that would compel Slovakia's president to appoint a new government. The parliament could also agree to hold an early election, though such a move would require support from both the opposition and government camps. The government is facing significant domestic problems including a high budget deficit, problems in the healthcare system, and a halt to Russian gas deliveries via Ukraine that Fico says has damaged Slovakia's economy. Fico says the halt of gas flows from Ukraine will cost Slovakia 1.5 billion euros in higher prices and lost revenue from transit fees. He has threatened to end humanitarian aid to Kyiv because of the dispute. Last month Fico travelled to Moscow for talks on the issue with Russian President Vladimir Putin but has not visited Kyiv. Before the gas transit dispute, Fico ended Slovakia's state-funded military support for Ukraine in its war with Russia. "Robert Fico has left Slovakia. Instead of being in his home country and working on solving problems, he is flying around the world and bows to dictators," Michal Simecka, the head of the biggest opposition party Progressive Slovakia, told a televised news conference. "We are committed to Slovakia being firmly anchored in the European Union and North Atlantic (NATO) alliance." Sign up here. https://www.reuters.com/world/europe/slovak-opposition-parties-call-no-confidence-vote-against-pm-ficos-government-2025-01-14/
2025-01-14 12:35
Norway awards exploration permits to 20 companies Must drill to uphold oil, gas output, energy minister says Also prepares for more Arctic exploration Demonstrators, including Thunberg, protest against move SANDEFJORD, Norway, Jan 14 (Reuters) - Norway on Tuesday awarded stakes in 53 offshore oil and gas exploration licences to 20 companies in its annual licensing round, and announced plans for increased drilling in its offshore Arctic region, the energy minister said. The annual award fell from 62 licences awarded one year ago while the number of oil and gas firms receiving permits declined from 24. "If we are to uphold a stable production in the years to come, we must explore more and invest more," Energy Minister Terje Aasland told a conference. The annual predefined area (APA) rounds of new offshore exploration acreage are central to Norway's strategy of extending oil and gas production for decades to come, a policy that is fiercely opposed by environmental groups. Three of them, Extinction Rebellion, Grandparents for Climate and Greenpeace, demonstrated on Tuesday, along with activist Greta Thunberg, by blocking nearly all the entrances to the hotel where the energy minister made the announcement. Some 60 people protested, carrying banners that said "Norwegian Oil Kills" and "Phase Out Plan Now". "We are in a fast escalating climate crisis, which is threatening us and everything that we love. We have a moral responsibility to act," Greta Thunberg told public broadcaster NRK. Norway became Europe's largest supplier of natural gas following Russia's invasion of Ukraine in 2022, providing about 30% of all gas imports to the European Union. The country also partly replaced Russian oil barrels banned by the EU. The latest round awarded 33 licences in the North Sea, up from 29 one year ago. Another 19 licences were awarded in the Norwegian Sea, down from 25 permits a year ago, while only one licence was awarded in the Barents Sea, down from eight. In May, the government added 37 new blocks in the latter two areas, arguing more exploration was needed to help maintain Norwegian petroleum production in the future. State controlled Equinor (EQNR.OL) , opens new tab was awarded stakes in 27 licences, including seven it will operate, while the second-largest listed oil firm, Aker BP (AKRBP.OL) , opens new tab, received stakes in 19 licences, including 16 it will operate, the ministry said. The energy ministry said it would also launch the next APA around, this time focusing on the Arctic, by proposing to expand 76 blocks - of which 68 are in the Barents Sea and the remainder in the Norwegian Sea. Awards for that round would be announced in January 2026, it said. Sign up here. https://www.reuters.com/business/energy/norway-awards-53-stakes-latest-offshore-oil-gas-exploration-round-2025-01-14/
2025-01-14 12:30
NAPERVILLE, Illinois, Jan 13 (Reuters) - The U.S. Department of Agriculture last week made one of its most surprising tweaks ever to the domestic corn harvest, though it turns out that speculators were ready. In the week ended Jan. 7, money managers increased their net-long position in CBOT corn futures and options to 253,346 contracts from 228,806 a week earlier. That marked their most bullish corn stance since Nov. 1, 2022. CBOT corn futures were largely unchanged during that week, though they have jumped 4% since, on Monday hitting the highest levels in just over a year. USDA on Friday slashed U.S. corn yield by a hefty 3.8 bushels per acre from the previous estimate. On a per-bushel basis, the average trade estimate was the furthest from the actual in at least a quarter-century. Corn had already been strengthening in recent months on robust demand, whittling 2024-25 U.S. ending-stock estimates. Those fell again on Friday, and stocks are now seen 27% lower than originally projected last May. Some industry participants have suggested that the elevated bullishness of the funds is actually a bearish factor for corn prices because the market could be prone to sharp selloffs, and this is indeed a risk. However, bullishness can sustain if the conditions are right. Speculators held a net long in corn from September 2020 to March 2023, when U.S. stocks-to-use hovered between 8.3% and 9.9%, below average levels, for three consecutive marketing years. USDA estimates 2024-25 U.S. corn stocks to use at a close-by 10.2%. While not impossible, sustaining these thinner ratios into 2025-26 would take a series of events such as weather problems in South America, then weather problems at home, and so on. Speculators’ previous bullish run came when China was active in the U.S. corn market, which elevated U.S. exports somewhat artificially against tighter supply levels. China has not bought significant volumes of U.S. corn in nearly two years. SOY BEARS U.S. soybean production also fell significantly below trade expectations on Friday, and U.S. stocks-to-use for 2024-25 is nearing the year-ago levels. A few months ago, stocks-to-use had been seen rising 50% on the year. Funds had been covering short positions in the couple of weeks ahead of the USDA report, but they remained reasonably bearish as of Jan. 7 with a net short of 28,612 CBOT soybean futures and options contracts. That is a 13-week low and compares with 42,447 in the prior week. Most-active CBOT soybeans rose 5.6% in the latest four sessions, reaching three-month highs on Monday. Traders are weighing lighter U.S. supplies and continued dry weather in Argentina against a big crop projection in Brazil. CBOT soybean oil exploded 11.5% over the last four sessions as upcoming clean fuel tax credit guidelines are expected to limit domestic competition for U.S soyoil. That may have churned stomachs of money managers, who through Jan. 7 extended their net short in CBOT soybean oil futures and options to a 16-week high of 31,999 contracts, up more than 3,000 on the week. Despite 4.2% losses in CBOT soymeal futures in the week ended Jan. 7, money managers trimmed their heavy net short to 58,624 futures and options contracts from 64,942 a week earlier. Soybean meal climbed another 1.4% over the last four sessions, potentially as the soy crop in top meal exporter Argentina hangs in the balance. Forecasts late on Monday suggested significant rainfall could still be another week or more away. Karen Braun is a market analyst for Reuters. Views expressed above are her own. Sign up here. https://www.reuters.com/markets/us/funds-form-most-bullish-corn-stance-since-2022-ahead-friendly-us-data-2025-01-14/
2025-01-14 12:23
Baltic Sea NATO nations meet in Finland Plan response to damage of undersea infrastructure Alliance to deploy ships, planes, naval drones 'Shadow fleet' vessel seen circling pipeline, media reports HELSINKI, Jan 14 (Reuters) - NATO countries will deploy frigates, patrol aircraft and naval drones in the Baltic Sea to help protect critical infrastructure and reserve the right to take action against ships suspected of posing a security threat, alliance members said on Tuesday. The NATO alliance is taking the action, dubbed "Baltic Sentry", in response to a string of incidents in which power cables, telecom links and gas pipelines have been damaged in the wake of Russia's invasion of Ukraine in February 2022. Finnish police last month seized a tanker carrying Russian oil and said they suspected the vessel had damaged the Finnish-Estonian Estlink 2 power line and four telecoms cables by dragging its anchor across the seabed. Polish state broadcaster TVP World on Tuesday reported that a Russian "shadow fleet" ship had been seen circling around the Baltic Pipe subsea pipeline that delivers gas from Norway to Poland, although there were no immediate signs of damage. Finland's actions against the Eagle S tanker showed that vessels causing harm can be apprehended by law enforcement, NATO Secretary General Mark Rutte told a press conference following a eight-nation meeting in Helsinki on Tuesday. "Potential threats to our infrastructure will have consequences, including possible boarding, impounding and arrest," Rutte said. NATO members are looking at targeting Russia's shadow fleet in the area with sanctions as part of efforts to protect undersea critical installations, German Chancellor Olaf Scholz said following the meeting. "We will continue to take action against the Russian shadow fleet, including with sanctions that have already been introduced and others that may follow, including against specific ships and shipping companies that also pose a threat to the environment," Scholz told reporters. Some 2,000 ships are crossing the Baltic Sea every day, making it difficult to monitor it all, Latvian President Edgars Rinkevics said. "Let's face it, we can't ensure 100% protection, but if we are sending a bold signal then I think that such incidents are going to decrease or even to stop," Rinkevics told reporters. Finland's President Alexander Stubb said further legal studies must be conducted to assess which measures can be taken against suspected rogue ships while preserving freedom of navigation rules. Sign up here. https://www.reuters.com/world/europe/baltic-sea-nations-seek-limit-further-incidents-after-cable-breaches-2025-01-14/
2025-01-14 12:20
TSX ends up 0.2% at 24,588.58 Materials group adds 1.5% as gold rises Cogeco Communications shares fall 5.9% Jan 14 (Reuters) - Canada's main stock index edged up on Tuesday, helped by gains for financial and gold mining shares, but the move was limited as investors awaited a key U.S. inflation report this week. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) , opens new tab ended up 52.26 points, or 0.2%, at 24,588.58. "It's strength in golds and financials primarily that are driving it," said Brian Madden, chief investment officer at First Avenue Investment Counsel Inc. The materials group, which includes fertilizer companies and metal mining shares, climbed 1.5% as the price of gold clawed back some of the previous day's decline. Heavily weighted financials were up 0.3%. "Anticipation is likely building for the big U.S. money center banks and some of the other financial institutions that are reporting their fourth quarter results tomorrow," Madden said. "That might be putting a bid to the Canadian financials as well." U.S. quarterly earnings get under way on Wednesday with results from big banks, which are expected to post stronger profits on the back of robust dealmaking and trading. Still, the TSX has retreated 4.3% from a record closing in December as investors brace for expected U.S. trade tariffs and after a hawkish shift in stance by the Federal Reserve. U.S. consumer price index data, due on Wednesday, could offer clues on prospects of the Fed continuing its easing campaign at some point this year. Some interest-rate sensitive sectors lost ground as Canada's 10-year yield climbed to a six-month high. Consumer staples fell 1.6% and utilities ended 0.6% lower. The biggest declining stock was Cogeco Communications Inc (CCA.TO) , opens new tab. Its shares fell 5.9% after the telecommunications company reported quarterly revenue that fell short of estimates. Sign up here. https://www.reuters.com/markets/tsx-futures-edge-up-investors-await-us-inflation-data-2025-01-14/
2025-01-14 12:19
Jan 14 (Reuters) - Sinopec Shanghai Petrochemical Company (600688.SS) , opens new tab said on Tuesday it will upgrade its operations by investing 21.31 billion yuan ($2.91 billion). To maintain its capacity in crude oil processing and make other operational upgrades, the company will shut down existing 18 sets of oil refining devices and install new ones, it said. The new installations will have a capacity to refine 1.20 million tons of ethylene per year, it added. The company expects to complete the construction of the main project in a span of three years, subject to approval of its shareholders. Sinopec Shanghai Petrochemical said the project will improve the variety and production capacity of its new material products and increase the production of raw materials. ($1 = 7.3310 Chinese yuan renminbi) Sign up here. https://www.reuters.com/markets/commodities/sinopec-shanghai-petrochemical-spend-291-billion-improve-operations-2025-01-14/
