2024-12-09 11:01

FLORENCE, Dec 9 (Reuters) - Two people died, nine were injured and four were missing after an explosion on Monday at a fuel storage facility owned by Italian energy group Eni (ENI.MI) , opens new tab near Florence, local authorities said. The explosion occurred in Calenzano on the northern outskirts of the Tuscan capital in a loading area but did not affect the site's fuel storage facilities, an ENI spokesman said. "All of Tuscany is united in grief for the tragedy that happened today in Calenzano," regional president Eugenio Giani wrote on social media. Firefighters said the fire had been put out, while Italy's Civil Protection agency urged the local population to stay away from the site and stay indoors. The fire produced a thick column of smoke, visible from a distance. Experts from the Regional Environment Protection Agency were on site to assess any potential environmental damage, including on waterways, Giani said. Sign up here. https://www.reuters.com/world/europe/two-people-life-threatening-condition-after-blast-eni-facility-near-florence-2024-12-09/

2024-12-09 10:13

KYIV, Dec 9 (Reuters) - Ukraine has increased its steel production so far in 2024 by 23.1% to 7 million metric tons, data from the country's steel producers union showed on Monday, but the possible loss of a key coking coal mine makes the outlook uncertain. Steel production has suffered since Russia's invasion of Ukraine on Feb. 24, 2022, and the destruction of leading steel plants in fighting since then. The country was a major steel producer and exporter before the war began. Ukraine's rolled steel output rose by 18% to 5.7 million tons in the January to November period, while pig iron production rose by 19.8% to 6.5 million tons, the union said in a report. However, its steel output could fall sharply if Ukraine loses its sole supplier of coking coal due to Russian troops moving closer to a mine located in the eastern town of Pokrovsk. Ukrainian military analyst DeepState said Russian troops were less than 7 km (4.4 miles) from Pokrovsk's outskirts. The mine lies 10 km (6.2 miles) west of the town, a strategic supply hub, in the opposite direction to the advancing Russian forces. An industry source told Reuters last week that the mine is still operating. The steelmakers union said in October the potential closure of the mine could cause steel production to slump to 2-3 million metric tons next year, from the 7.5 million expected in 2024. Producers hope to find alternative sources of coking coal from within Ukraine if the mine is seized by Russian troops, but imports would inevitably be needed, increasing costs. In 2022, Ukrainian steel output fell by 70.7% to 6.3 million tons, while in 2023 the country produced 6 million tons. Sign up here. https://www.reuters.com/markets/commodities/ukraine-steel-output-jumps-possible-coking-coal-loss-clouds-outlook-2024-12-09/

2024-12-09 10:06

MUMBAI, Dec 9 (Reuters) - The Indian rupee closed slightly weaker on Monday, weighed down by a decline in its Asian peers with analysts expecting the local currency to continue facing headwinds amid persistent strength in the U.S. dollar. The rupee ended at 84.73 against the U.S. dollar, down from its close of 84.6875 in the previous session. While the rupee touched a low of 84.7350 during the session, mild dollar sales from state-run banks helped avoid further losses, traders said. "We expect INR to trade at current levels with a depreciating bias. The Reserve Bank of India's recent measures to boost foreign inflows and a range-bound CAD (current account deficit) should lend support over the medium term," economists at Bank of Baroda said in a note. The dollar index was higher at 105.9 while most Asian currencies weakened. The Korean won declined 1% on the day to lead losses amid deepening political turmoil in the country. While U.S. labour market data released on Friday drove U.S. bond yields lower on heightened expectations of a Federal Reserve rate cut later this month, it did little to dent the dollar's stride. Expectations that the incoming Trump administration's policies may reignite inflation and slow future rate cuts by the Fed have helped keep the dollar well bid. "There seems little reason to reduce long dollar positions right now and after two weeks of consolidation, we see it as more likely that the dollar will resume its bull trend," ING Bank said in a note. U.S. and India's inflation data due this week on Wednesday and Thursday, respectively, will be in focus to gauge the future path of benchmark policy rates in the two countries. Meanwhile, market participants also await developments related to who will helm the top job at the RBI as Governor Shaktikanta Das's term is set to conclude on Tuesday. Sign up here. https://www.reuters.com/markets/currencies/rupee-ends-marginally-lower-near-term-bearish-bias-tipped-persist-2024-12-09/

2024-12-09 09:53

China monetary policy shift is first in 14 years Fiscal policy will be more proactive Stock market jump as policy tone raises optimism Trump's tariff threats a major risk to growth BEIJING, Dec 9 (Reuters) - China will adopt an "appropriately loose" monetary policy next year, the first easing of its stance in some 14 years, alongside a more proactive fiscal policy to spur economic growth, the Politburo was quoted as saying on Monday. China will step up "unconventional" counter-cyclical adjustments, focusing on expanding domestic demand and boosting consumption, state media Xinhua reported, citing a readout of a meeting of top Communist Party officials, the Politburo. The remarks came ahead of the annual Central Economic Work Conference in the coming days to set key targets and policy intentions for next year. Stocks jumped and China's government bonds rallied following the Politburo meeting readout, with Hong Kong's Hang Seng index (.HSI) , opens new tab climbing 2.8% to its highest in a month. In 2025, authorities must adhere to "the principle of pursuing progress while maintaining stability," Xinhua said. "A more proactive fiscal policy and an appropriately loose monetary policy should be implemented, enhancing and refining the policy toolkit, strengthening extraordinary counter-cyclical adjustments," the readout said. The housing market and stock market must be stabilised, the Politburo added, without giving details. POLICY STANCE BEING EASED The new wording for monetary policy marks the first easing of the stance since late 2010, according to official announcements on the Politburo meetings. "We think it points to strong fiscal stimulus, big rate cut and asset buying in 2025," said Xing Zhaopeng, ANZ's senior China strategist. "The policy tone shows strong confidence against Trump threats" of tariffs. China's economy has struggled this year, prompting policymakers to act in September, with the central bank unveiling its most aggressive monetary easing since the pandemic, cutting interest rates and injecting 1 trillion yuan ($140 billion) into the financial system, among other steps. China may just be able to reach its growth target of around 5% this year, but maintaining that pace in 2025 - as U.S. President-elect Donald Trump returns to the White House having threatened tariffs of 60% or more on Chinese imports - would be a difficult task. The central bank has outlined five policy stances - "loose", "appropriately loose", "prudent", "appropriately tight" and "tight" - with flexibility on either side of each. China adopted an "appropriately loose" monetary policy after the 2008 global financial crisis, before switching to "prudent" in late 2010. In November, China unveiled a 10 trillion yuan ($1.40 trillion) debt package to ease local government financing strains and stabilise flagging economic growth. But the debt measures aim to repair municipal balance sheets as a longer-term objective, rather than directly inject money into the economy. President Xi Jinping, at a symposium on Dec. 6, urged full preparation to achieve 2025 economic targets, and said the country's current development faces many challenges, state media Xinhua reported on Monday. TRUMP TARIFFS LOOM China's economy has shown an over-reliance on manufacturing and exports this year, with household demand disappointing as a severe property market crisis erodes consumer wealth and most government stimulus goes to producers and infrastructure. Government advisers are recommending Beijing keeps its growth target unchanged next year, but also called for more forceful fiscal stimulus to mitigate the impact of expected U.S. tariffs and fend off deflationary pressures. Trump's tariff threats have rattled China's industrial complex, which sells goods worth more than $400 billion annually to the United States. Finance Minister Lan Foan has said more stimulus measures were in the pipeline, without giving details. Economists have urged Beijing to be more consumer-focused in its policies and offer stronger financial support for low-income residents, while pushing ahead with promised tax, welfare and other policy changes to address structural imbalances. So far, however, authorities have focused on upgrading the export-reliant manufacturing sector instead, with remarkable success in electric vehicles, solar energy and batteries that has spurred pushback from key trade partners. Sign up here. https://www.reuters.com/world/china/china-announces-first-monetary-policy-shift-since-2010-spur-growth-2024-12-09/

2024-12-09 09:44

Mahama returns after two failed attempts He campaigned on promise to "reset Ghana" He plans to renogotiate terms of IMF bailout ACCRA, Dec 9 (Reuters) - John Dramani Mahama, who is returning as Ghana's president eight years after losing power, achieved his political comeback on a promise to mend the West African country's economy. His main rival conceded defeat on Sunday after partial results showed Mahama, 66, was on course to win Saturday's presidential election and that his National Democratic Congress would win a parliamentary election held the same day. The eldest son of a wealthy rice trader turned politician, Mahama became Ghana's interim leader in 2012 after the sudden death of President John Atta Mills, under whom Mahama served as vice president. Mahama defeated his main challenger, Akufo-Addo, in an election a few months later - the first in a series of votes that pitted the two against each other. During his four-year term, Mahama invested heavily in infrastructure but drew criticism over prolonged power shortages, macroeconomic instability and allegations of political corruption although he was not personally tainted. Polls before Saturday's election had forecast Mahama to win after a spiralling economic and cost-of-living crisis in cocoa, gold and oil-producing Ghana hit the popularity of Akufo-Addo's government and increased momentum for a change in leadership. In an interview with Reuters before the election, Mahama said he would seek to renegotiate terms of a $3 billion International Monetary Fund bailout secured last year to restructure the country's debt. He has also promised to ease business regulations, introduce a 24-hour triple-shift work system, enact tax reforms and invest $10 billion in modernising infrastructure. "This election is not just another election. It's a defining moment for our nation," he told his final campaign rally, urging voters to "reset the country". 'THANK YOU, GHANA' Mahama went to a private boarding school in Accra and also studied communications in the capital at the University of Ghana in the 1980s before moving to Moscow to study psychology. He was first elected to parliament in 1996 and served as communications minister from 1998 to 2001. Atta Mills appointed him vice president in 2009. Mahama failed to secure a second term as president in 2016, when Akufo-Addo defeated him on the back of falling gold, oil and cocoa export prices. Akufo-Addo defeated Mahama again in 2020 on a promise to restore growth. Celebrating what he called an emphatic win in Saturday's election Mahama wrote on X: "Thank you, Ghana." Mahama was born and raised as a Christian, like the majority of Ghanaians. He is married with five children. An avid reader and writer, he has published columns in Ghanaian and international newspapers, including an opinion piece on the death of South Africa's first black president Nelson Mandela for the New York Times. In 2012, he wrote a memoir in which he recalled the military coup that ousted Ghana's founding president, Kwame Nkrumah, in 1966. Mahama was seven at the time. Sign up here. https://www.reuters.com/world/africa/john-dramani-mahama-returning-ghana-president-pledge-mend-economy-2024-12-09/

2024-12-09 09:32

FRANKFURT, Dec 9 (Reuters) - Investor morale in the euro zone fell in December to its lowest in more than a year, a survey showed on Monday, with Germany remaining a drag on the bloc as snap elections in February have failed to inspire confidence. The Sentix index for the euro zone fell to -17.5 in December from -12.8 in November, the lowest level since November 2023 and a bigger decline than the -13.5 forecast by analysts polled by Reuters. "Following the announcement of new elections to the German Bundestag, there is no mood of optimism," the survey said, adding that with regard to Europe's top economy "the recession remains omnipresent." The survey of 1,148 investors from Dec. 5 to Dec. 7 showed expectations also falling to -5.8 in December, down from -3.8 points last month. The current situation score for the currency union even fell to its lowest level in more than two years, coming in at -28.5 in December from -21.5 in November. Investor morale in Germany also fell to -33.2 in December, down from -29.8 in November, the survey showed. Sign up here. https://www.reuters.com/markets/europe/euro-zone-investor-morale-falls-december-lowest-more-than-year-2024-12-09/