2024-12-23 11:00
PARIS, Dec 23 (Reuters) - France is holding a national day of mourning for Mayotte, its Indian Ocean territory devastated by a deadly cyclone on Dec. 14, on Monday, beginning with a minute of silence at 11:00 a.m. (1000 GMT). Cyclone Chido was the worst storm to hit the island in 90 years, and authorities have said that perhaps thousands of people may have been killed in its wake, though the government's death toll stands at 35. To commemorate Mayotte's losses, French flags were lowered to half-mast. Separately, flags were flown at half-mast in Brussels and Strasbourg because of Mayotte, as well as following attacks last week on a German Christmas market and in a Croatian school. "It is a communion in mourning," Prime Minister Francois Bayrou told reporters. He said the day showed solidarity for those in Mayotte, and that France was "present to reconstruct Mayotte and make sure the people of Mayotte feel surrounded by the entire country." Following the storm, officials say corpses may have been buried quickly per religious custom, before they could be counted, and that many of the people killed may have been undocumented immigrants. Mozambique has said 94 people died in the disaster, while 13 were killed in neighbouring Malawi. ANGER The slow pace of aid and delays in the arrival of clean water have angered residents of Mayotte, France's poorest overseas territory located between Madagascar and Mozambique about 8,000 km (4971 miles) from the mainland, with some heckling President Emmanuel Macron during his visit last week. Francois-Noel Buffet, France's acting minister of overseas territories, told France 2 that water - a flashpoint even before the disaster - had made it to the island, saying: "We are not missing water. We have water, notably bottled water. We have a problem with distribution." Buffet said he expected a special law on the reconstruction of Mayotte to be introduced in early January. In Paris, Bayrou, France's fourth prime minister this year, is expected to unveil his cabinet Monday evening, though the timing was uncertain. The French presidency said the announcement would not take place before 6:00 p.m. (1700 GMT), to take into account the day of mourning. Estelle Youssouffa, a lawmaker for Mayotte, criticised the government in an interview with Radio France Internationale for possibly making the announcement on the day of mourning, accusing Bayrou, who has not yet visited the islands, of "humiliating us a second time." Sign up here. https://www.reuters.com/world/europe/france-holds-day-mourning-mayotte-island-devastated-by-cyclone-2024-12-23/
2024-12-23 10:54
Dec 23 (Reuters) - A plan discussed by wealthy nations to throttle tens of billions of dollars in public support for oil and gas projects has broken down without agreement, Bloomberg News reported on Monday. The European Union, UK, the United States and other countries had sought the deal to limit export-credit agency finance for global fossil-fuel projects under the umbrella of the Organization for Economic Co-operation and Development (OECD), the report said. "Negotiations are still ongoing," an OECD spokesperson said to Reuters in response to the report. While improving transparency in export financing remains a target, the likelihood of a broader deal to curb support for hydrocarbon projects is now remote, Bloomberg said citing unnamed senior U.S. officials. Negotiators are planning to continue trading messages until early January, at least, the report added citing one of the officials. Sign up here. https://www.reuters.com/business/energy/plan-throttle-foreign-fossil-fuel-finance-collapses-oecd-bloomberg-reports-2024-12-23/
2024-12-23 10:10
MUMBAI, Dec 23 (Reuters) - The Indian rupee weakened to its lifetime low on Monday, pressured by weakness in the offshore Chinese yuan and strong dollar bids from importers, likely related to month-end payments, while state-run banks' dollar sales capped the decline. The rupee declined to 85.12 against the U.S. dollar, hitting an all-time for the fifth consecutive trading session and inching past the previous record low of 85.10 hit on Friday. The currency ended the session at 85.1175, down 0.1% on the day. The offshore Chinese yuan declined to 7.30, down 0.2% on the day, while the dollar index rose 0.1% to 107.9. Three traders cited mild dollar sales from state-run banks, likely on behalf of the Reserve Bank of India, helping limit the rupee's losses. The RBI's frequent interventions have supported the rupee in the face of multiple headwinds, including a hawkish shift in the Federal Reserve's outlook for policy rates over 2025, concerns about India's slowing economic growth and tepid capital flows. State-run banks were also spotted conducting mid-tenor dollar-rupee buy/sell swaps, traders said. The RBI has ramped up its forward dollar sales to limit the impact of spot market interventions on cash in the banking system and on foreign exchange reserves. "India’s forex reserves have slipped to a six-month low, reflecting the RBI’s timely interventions to curb excessive depreciation of the rupee," said Amit Pabari, managing director at FX advisory firm CR Forex, pegging the local unit in the 84.70-85.20 range in the near-term. Meanwhile, dollar-rupee forward premiums rose on Monday with the 1-year implied yield up 2 basis points at 2.24% while the 1-month forward premiums rose to 20 paisa. The forward premiums were aided by a rise in the overnight swap rate which was lifted by likely cash dollar inflows related to ongoing initial public offerings (IPO). Sign up here. https://www.reuters.com/markets/currencies/rupee-slips-all-time-low-pressured-by-weak-yuan-importer-dollar-bids-2024-12-23/
2024-12-23 09:50
Dec 21 (Reuters) - Party City, which has been struggling since the COVID-19 pandemic, filed for Chapter 11 bankruptcy protection in the United States on Saturday for the second time in two years as it plans to wind down its retail and wholesale operations. The retailer, which has been in business for over 40 years and sells party supplies from themed decorations to Christmas costumes, said that all of its 700 stores in the country would remain open as it commences a going-out-of-business sale. The company along with certain of its subsidiaries filed for Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas. In a filing with the court, Party City Holdco listed both assets and liabilities in the range of $1 billion to $10 billion and estimated to have more than 10,000 creditors. Party City Holdco's senior lenders would provide the retailer with financial support necessary to fund operations through the wind-down process, the Woodcliff Lake, New Jersey-based company said in a statement. Troubled retailers often seek bankruptcy protection during the holiday season to take advantage of any cash infusion provided by recent sales. Party City, which operates both brick-and-mortar stores and an e-commerce website, said it would retain most of its 12,000 employees during the sale period to assist with the wind-down process. The company first filed for Chapter 11 bankruptcy protection in the U.S. in January last year. Later that year it reached a plan to exit bankruptcy, which saw a cancellation of about $1 billion in company debt. The company has suffered since the pandemic due to lockdowns and store closures, along with inventory shortages and tight helium supplies due to global supply chain disruptions. Amscan, a designer, manufacturer, and distributor of celebration products that is operated by Party City Holdco, also filed for bankruptcy on Saturday. Sign up here. https://www.reuters.com/legal/retailer-party-city-files-bankruptcy-will-wind-down-700-stores-2024-12-21/
2024-12-23 08:45
NEW DELHI, Dec 23 (Reuters) - India's November crude imports showed Middle Eastern oil at a 9-month high while Russia accounted for its smallest share in three quarters, ship tracking data obtained from sources showed. Refiners in India have been gorging on cheaper Russian oil despite problems posed by sanctions aimed at reducing Moscow's oil revenue to fund its war in Ukraine. The world's third biggest oil importer and consumer in November shipped in 13% less Russia oil compared with October at 1.52 million barrels per day (bpd), about 32% of India's overall intake, the data showed. It imported 2.28 million bpd of Middle Eastern oil, an increase of 10.8% over October, accounting for about 48% of overall imports, the data showed. Some refiners reduced intake of Russian oil due to maintenance turnarounds at their plants and continued to lift committed volumes under annual contracts with Middle Eastern producers, an India refining official said. Russia's oil exports from its key western ports in November fell due to higher demand from local refiners who had finished maintenance, sources said. Also, Russia, an ally of Organization of the Petroleum Exporting Countries, promised to make additional cuts to its oil output from the end of 2024 to compensate for overproduction earlier. India imported about 4.7 million bpd of oil in November, up 2.5% from October and up by 5% from a year earlier, the data showed. Russian continued to be the top oil supplier to India followed by Iraq and Saudi Arabia. Increased purchases of the Middle Eastern oil lifted the share of OPEC's oil in India's crude intake to an 8-month high of 53%. In contrast, the share of Commonwealth of Independent States including Russia, Kazakhstan and Azerbaijan, in India imports declined to 35% in November from 40% in October, the data showed. Sign up here. https://www.reuters.com/markets/commodities/middle-east-share-indias-nov-oil-imports-9-mth-high-russia-down-2024-12-23/
2024-12-23 07:32
Zero growth in UK GDP in Q3 vs previous estimate of 0.1% Bank of England has estimated zero growth in Q4 Data adds to signs of lost momentum in economy Surveys show employer confidence fall, weak outlook LONDON, Dec 23 (Reuters) - Britain's economy failed to grow during the first three months of Prime Minister Keir Starmer's new government, official figures showed on Monday, adding to signs of a slowdown that has cast a shadow over his time in office so far. The Office for National Statistics lowered its estimate for the change in gross domestic product output to 0.0% in the July-to-September period from a previous estimate of 0.1% growth. The ONS also cut its estimate for growth in the second quarter to 0.4% from a previous 0.5%. Starmer and his finance minister Rachel Reeves took power in early July, warning of the poor state of the economy before announcing tax increases for businesses in a budget on Oct. 30 that has alarmed many employers. Analysts, many of whom said the grim tone of the new government risked slowing the economy, said the numbers suggested zero growth over the entire second half of the year. The Bank of England last week forecast that the economy would not grow in the fourth quarter. But it kept borrowing costs on hold because of the risks still posed by inflation. Paul Dales, chief UK economist at consultancy Capital Economics, said the GDP downgrade was caused in part by weaker demand for exports while consumer spending and business investment at home held up. "Our hunch is that 2025 will be a better year for the economy than 2024," Dales said. 'WORST OF ALL WORLDS' Philip Shaw, chief economist at Investec, said the economy was only just on course to avoid a recession - defined as two consecutive quarters of economic contraction - but the data raised the likelihood of the BoE cutting interest rates in early 2025. A separate survey from Lloyds Bank showed confidence among businesses fell to its lowest level of 2024 in December. Data from the Confederation of British Industry - based on previously released surveys - showed companies expected activity to fall and prices to rise in early 2025. Alpesh Paleja, a CBI economist, said the figures "suggest that the economy is headed for the worst of all worlds – firms expect to reduce both output and hiring, and price growth expectations are getting firmer." The government's hike in social security contributions for employers was exacerbating weak demand, Paleja said. Reeves said Monday's GDP data showed she faced a huge challenge "after 15 years of neglect" but that her budget would create sustainable long-term growth. The Conservatives' spokesman on the economy said Reeves had to rethink tax increases urgently before they come into effect in April. "Every moment of delay is further damaging business confidence, output and employment," Mel Stride said. The ONS said there was no growth in the services sector in the third quarter. A 0.7% increase in construction was offset by a 0.4% fall in production. Bars and restaurants, legal firms and advertising were among the weakest sectors in the three months to the end of September. The data also showed no growth in living standards and that households had dipped into their savings. The ONS said Britain's current account deficit shrank to 18.1 billion pounds in the third quarter from 24 billion pounds in the April-to-June period. The Reuters poll of economists had pointed to a shortfall of 22.5 billion pounds. Sign up here. https://www.reuters.com/world/uk/uk-economy-showed-zero-growth-q3-2024-12-23/
