2024-12-10 21:49
Dec 11 (Reuters) - A look at the day ahead in Asian markets. Investors go into Wednesday in a cautious frame of mind as they continue to digest the likely impact of China's policy signal this week, and following a 'risk off' day that saw stocks fall and the dollar and bond yields rise. Asia's economic calendar on Wednesday is light, with only Japanese producer inflation and South Korean unemployment figures on tap. Reserve Bank of Australia Deputy Governor Andrew Hauser also speaks, following the bank's policy decision on Tuesday. With U.S. inflation figures to be released later on Wednesday after Asian markets close, potentially a key factor in whether the Fed cuts rates next week or not, investors may be inclined to hold the line and keep risk exposure to a minimum. Tuesday's market moves would feed into that mindset. World stocks fell for a second day in a row, something that last happened a month ago, while the rise in bond yields and the dollar tightened financial conditions further. Investors may be extra sensitive to any rise in bond yields this week, as the U.S. Treasury sells $125 billion of notes and $85 billion of bills. Japanese government bond yields and the yen may also be sensitive to Wednesday's producer price numbers from Japan, especially after the substantial upward revision to third quarter GDP growth on Monday. Meanwhile, investors and market watchers continue to try and figure out if Beijing's historic shift in its monetary and fiscal policy stance this week will be matched by equally bold action. The economy certainly needs it. The latest trade figures on Tuesday were uniformly weak, with the near-4% year-on-year slump in imports last month particularly alarming. That was significantly worse than the bleakest forecast in a Reuters survey of 21 economists of a 3% decline, and highlights how brittle domestic demand is. The 10-year Chinese bond yield fell further on Tuesday to a new all-time low of 1.877%. It has fallen more than 15 basis points so far this month, on track for its steepest monthly fall since July 2021. Some analysts reckon the decline this week is a positive reaction to Beijing's shift, as it shows investors are anticipating a significant loosening of monetary policy soon. There may be something to that, and substantial policy easing could indeed reflate growth and asset prices. But it's hard to disentangle the move in yields from the latest trade and inflation data that are a reminder of just how heavy the deflationary and weak demand pressures bearing down on the economy actually are. The Indian rupee, meanwhile, is anchored at a record low, with rate cut hopes rising after the government named career civil servant Sanjay Malhotra to replace outgoing Reserve Bank of India Governor Shaktikanta Das. Here are key developments that could provide more direction to markets on Wednesday: - South Korea unemployment (November) - RBA Deputy Governor Andrew Hauser speaks - Japan producer inflation (November) Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-graphic-2024-12-10/
2024-12-10 21:10
WASHINGTON, Dec 10 (Reuters) - U.S. President-elect Donald Trump said on Tuesday that any person or company investing at least $1 billion into the U.S. "will receive fully expedited approvals and permits, including, but in no way limited to, all Environmental approvals." The statement, posted on his social media platform Truth Social, did not offer further details. Trump's transition team is working on a package to roll out within days of his taking office on Jan. 20 to approve export permits for liquefied natural gas projects and to increase oil drilling on federal lands and off the U.S.coast, sources familiar have said. It was not immediately clear how Trump could work around independent commissions such as the Federal Energy Regulatory Commission, which has recently required additional environmental reviews for LNG projects. The Trump transition team did not immediately respond to a request for comment. Trump, a Republican, also plans to repeal some aspects of Democratic President Joe Biden's regulations and top climate legislation, such as tax credits for electric vehicles and new clean power plant standards that aim to phase out coal and natural gas. Sign up here. https://www.reuters.com/world/us/trump-says-anyone-investing-1-billion-us-will-receive-expedited-permits-2024-12-10/
2024-12-10 21:06
DOE awaits FERC's environmental assessments Venture Global and Commonwealth projects affected Both projects are located on Louisiana Gulf coast WASHINGTON, Dec 10 (Reuters) - The U.S. Department of Energy said on Tuesday it is not able to complete reviews of two planned liquefied natural gas export terminals in Louisiana until an independent regulatory body finishes its environmental assessments of the projects. The department said it has to wait for the Federal Energy Regulatory Commission, or FERC, to finish its work before it can review applications for LNG exports from the terminals to countries with which the U.S. does not have free trade agreements. The projects are Venture Global LNG's CP2 20 million ton per annum facility and Commonwealth LNG's planned 9.5 Mtpa facility, both located on the Gulf of Mexico. "DOE cannot complete its review of these two applications - CP2 and Commonwealth - until after FERC's completion of the environmental reviews and issuance of final merits orders," the department said on its website. Republican President-elect Donald Trump has said he would act to approve LNG projects early in his term, which starts on Jan. 20. Trump wrote on social media on Tuesday that any person or company investing at least $1 billion in the United States "will receive fully expedited approvals and permits, including, but in no way limited to, all environmental approvals." It was not clear how the incoming administration would push FERC and other independent commissions to approve projects. The Department of Energy said its decision on Tuesday was "consistent with precedent" during the administration of Democratic President Joe Biden and the previous two administrations, including Trump's prior one. FERC last month pulled Venture Global's authorization to construct CP2, requiring an additional environmental review of air quality impact. FERC has not disclosed exactly how long that review will take. A FERC representative did not immediately respond to a request for comment. CP2 has been at the center of a fight with environmentalists seeking to limit future LNG projects on the U.S. Gulf Coast. The facility had won FERC construction approval in June. The additional review follows an Aug. 6 decision by the U.S. Court of Appeals for the District of Columbia Circuit that quashed FERC's approval of NextDecade's plant at the Port of Brownsville, Texas, and ordered FERC to reconsider the project ramifications with a new environmental statement and public comment period. Venture Global looks forward to Trump and Chris Wright, his pick for energy secretary, returning the Department of Energy to "regular order," company spokesperson Shaylyn Hynes said. "This will allow the American energy industry to continue building, creating jobs, and unleashing much needed U.S. LNG supply to our allies," Hynes said. FERC also put on hold its approval for the construction of Commonwealth LNG's facility in Cameron. Commonwealth has said it is confident in its project and will be providing all requested input for the supplemental environmental impact statement. Sign up here. https://www.reuters.com/business/energy/us-energy-department-says-two-lng-reviews-must-wait-regulator-2024-12-10/
2024-12-10 21:04
Another 300 firefighters will join 700 already battling blaze Fire spreads south over the Pacific Coast Highway Pepperdine University lifts shelter in place order MALIBU, California, Dec 10 (Reuters) - A wildfire fanned by strong winds was burning on Tuesday just northwest of Los Angeles forced some residents in Malibu to evacuate as it threatened homes, knocked out power and closed roads in the beach community. The brush fire blaze, called the Franklin Fire, grew overnight from five acres (two hectares) to 2,713 acres (1,097 hectares) along the steep mountainous terrain, spreading south over the Pacific Coast Highway in the picturesque coastal city of about 10,000 people. The fire, which is zero percent contained, has destroyed a small number of homes, but has not caused any injuries or deaths, Los Angeles County Fire Chief Anthony Marrone told a news conference on Tuesday. "We are going to have a coordinated ground and air assault," Marrone said, noting that 300 additional firefighters will join the 700 already battling the blaze. "Because of the difficulties in this particular area, time is of the essence for us to grab a hold of this fire." The fire's cause remains unknown, Marrone said. Los Angeles County Sheriff Robert Luna said that 2,043 structures were under evacuation orders and 6,046 were under evacuation warnings. One of those who evacuated was actor Dick Van Dyke, who turns 99 on Friday, and said on Facebook that he and his wife and animals had left the area and that he hoped "our community in Serra Retreat will survive these terrible fires." Burned homes smoldered on Tuesday as aircraft dropped water on burning vegetation. “I was going back to check on their homes and I was actually thinking that it was going to be no big deal," said Malibu resident Fred Roberts. "But after I've seen this one and that one there burnt, I know this is the real deal. And it did hit here hard.” Roberts said the winds coming down Malibu Canyon were "like a blowtorch." Governor Gavin Newsom said California had obtained a grant from the Federal Emergency Management Agency (FEMA) to secure resources to suppress the fire. Authorities went door to door overnight to alert thousands of residents and closed roads as the fire grew. The National Weather Service (NWS) issued a red flag warning, signaling an increased risk of fire danger for the area as Santa Ana wind gusts on Tuesday could reach 65 miles (104 km) an hour, a situation described as particularly hazardous. The warning remains in effect through Wednesday, but the weather service expects the winds to be lighter. Pepperdine University in Malibu in the morning lifted its shelter-in-place protocol that forced students to evacuate to the school's commons and library overnight. It told students to return to their residences and on-campus homes and to remain on campus and stay off Malibu roads. "Our campus, thoughtfully designed and maintained with fire safety in mind, has proven to be a secure place for our community during wildfires affecting the Malibu campus," Pepperdine President Jim Gash said in a statement. "Thankfully, there has been little damage to campus structures and no reports of injuries among our students, faculty, or staff." Sign up here. https://www.reuters.com/world/us/wildfire-forces-evacuations-malibu-california-students-shelter-place-2024-12-10/
2024-12-10 21:03
MEXICO CITY, Dec 10 (Reuters) - Mexico's lower house on Tuesday approved a reform that seeks to regulate labor conditions for delivery workers and drivers working for apps such as DiDi (92Sy.MU) , opens new tab, Rappi and Uber (UBER.N) , opens new tab by ensuring access to social security and a Christmas bonus among other benefits. The general reform passed unanimously with all 462 lawmakers present voting in favor following a two-hour debate. Deputies then went on to discuss the law's particular terms before it passes to the Senate, which must vote on any changes. The ruling Morena party and its allies, who won a landslide victory in the June general election, enjoy a large majority in both houses. They have since sped through a number of reforms proposed under the current and former administrations. The reform would add Mexico to the ranks of countries such as Chile and Spain that already regulate work through digital platforms, guaranteeing basic labor rights such as a minimum wage and social security. "We celebrate this great legislative step that combines flexibility and labor rights," Labor Minister Marath Bolanos said on X after the approval, saying the law will provide certainty for the delivery apps' business model. Around 658,000 people are employed across Mexico on digital platforms, according to tax authority data. Of these, some 41% earn over the minimum wage. Opposition Institutional Revolutionary Party (PRI) lawmaker, Ana Isabel Gonzalez, said the reform should include safeguards protecting from violence against women, such as cracking down on the creation of fake profiles. The legislation would ensure that workers who earn at least a minimum wage on the app (around $414 per month starting in 2025) have the right to unionize and access to benefits such as social security, accident insurance, pensions, maternity leave, the right to receive company profits and a Christmas bonus. Workers earning under minimum wage would not have access to all the benefits but be protected in case of work-related accidents. President Claudia Sheinbaum sent the proposal to lawmakers early December and the law was fast-tracked to a plenary vote ahead of Congress' Christmas recess on Dec. 15. Sign up here. https://www.reuters.com/world/americas/mexicos-lower-house-approves-labor-reform-app-workers-2024-12-10/
2024-12-10 20:59
CFIUS review of Nippon Steel's $15 billion bid for U.S. Steel due by Dec. 22 Biden opposes deal, awaits CFIUS recommendation Nippon Steel promises no job transfers, offers employee bonuses Dec 10 (Reuters) - A national security review of Nippon Steel's (5401.T) , opens new tab $15 billion bid for U.S. Steel is ongoing and President Joe Biden will see what it yields before making a decision on whether to block it, the White House said on Tuesday, cautioning he still opposes the tie-up. The statement comes after shares of U.S. Steel tumbled more than 10% on Tuesday afternoon following a Bloomberg report suggesting the deal would be killed in short order. CFIUS, a powerful committee charged with reviewing foreign investments in U.S. firms for national security risks, has until Dec. 22 to make a decision on whether to approve, block or extend the timeline for the deal's review, Reuters has reported. "The President's position since the beginning is that it is vital for U.S. Steel to be domestically owned and operated," Saloni Sharma, a White House spokesperson said in a statement. "As we have said before, the President will continue to see what the CFIUS process yields. We have not received any CFIUS recommendation. The CFIUS process was and remains ongoing," she added. Bloomberg's initial headline read that Biden was "set to" block the deal, suggesting a final decision had been made, but the outlet later updated it to say he "plans to" kill it, echoing prior comments and leaving the door open to a last minute change. CFIUS declined to comment. Japan's Nippon Steel said it was inappropriate that politics continued to outweigh true national security interests. "Nippon Steel still has confidence in the justice and fairness of America and its legal system, and – if necessary – will work with U. S. Steel to consider and take all available measures to reach a fair conclusion," it added in a statement. U.S. Steel said the transaction should be approved on its merits. "The benefits are overwhelmingly clear," it said in a statement. "Our communities, customers, investors, and employees strongly support this transaction, and we will continue to advocate for them and adherence to the rule of law." The two companies are poised to pursue litigation over the process if Biden decides to block the merger. The acquisition has faced opposition within the U.S. since it was announced last year with both Biden and his incoming successor Donald Trump both publicly indicating their intention to block it. CFIUS told the two companies in September the deal would create national security risks because it could hurt the supply of steel needed for critical transportation, construction and agriculture projects. Despite opposition, including from the United Steelworkers union, Japan's Nippon has pressed on in pursuit of a deal, promising to not transfer any U.S. Steel production capacity or jobs outside the U.S. if the merger succeeds. Nippon has also said it 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. In a bid to win over support from workers, Nippon Steel said on Tuesday it planned to give employees $5,000 each if the deal with U.S. Steel closed. It also pledged 3,000 euro ($3,160) closing bonuses to employees in Europe, which would result in a nearly $100 million total payment to employees. ($1 = 0.9496 euros) Sign up here. https://www.reuters.com/markets/deals/biden-plans-block-nippon-steel-purchase-us-steel-bloomberg-news-reports-2024-12-10/
