2024-11-13 20:22

WASHINGTON, Nov 13 (Reuters) - The union representing 45,000 East Coast and Gulf Coast dockworkers and a group representing employers held a new round of contract talks this week but failed to make significant progress on the critical issue of automation, the two sides said on Wednesday. That divide must be bridged before Jan. 15 to avoid a second port strike that would disrupt the nation's flow of goods as importers and exporters prepare for potential upheaval from President-elect Donald Trump's threatened tariffs on a broad swath of goods from China, Mexico and other countries. Leaders of the International Longshoremen's Association union are dogged foes of automation, saying it will kill jobs. Employers back automation and semi-automation, saying it is crucial to U.S. port competitiveness and can increase cargo volumes that underpin jobs. Meanwhile, President Joe Biden's administration is concerned about the prospect of a new work stoppage next year, a senior official said. The union declined a request for comment but addressed the situation in a Facebook post that was later removed, although not before it was shared within the shipping industry. "The ILA's resolve remains strong not to surrender any ILA jobs," the union said in the posting, adding that it cut off talks after the employer group continued pushing automation and semi-automation language in its Master Contract proposals. The ILA agreed to end a three-day strike on Oct. 3 after it won a 62% wage hike over six years with the United States Maritime Alliance (USMX) employer group following significant involvement by the White House and other Biden administration officials. The work stoppage was the first large-scale strike at East and Gulf Coast ports in nearly 50 years, briefly halting the flow of about half the country's ocean shipping. USMX and the union met for two days this week in an effort to reach a new six-year contract ahead of their extended Jan. 15 deadline. "While we had positive progress on a number of issues, we were unable to make significant progress on our discussions that focused on a range of technology issues," USMX said in a statement. The employer group said it is "not seeking technology that would eliminate jobs." It said the union is "insisting on an agreement that would move our industry backward by restricting future use of technology that has existed in some of our ports for nearly two decades, making it impossible to evolve to meet the nation's future supply chain demands." One scenario at issue is the use of driverless cranes that pick up containers from stacks on docks and move them to waiting trucks. Union workers in remote locations lower the containers onto the chassis to ensure that they are securely placed, a source familiar with the talks told Reuters. That type of semi-automation has helped terminals increase the number of containers they can handle, which supports jobs, that source said. The tentative deal announced last month would raise average union wages to about $63 an hour from $39 an hour over the life of the contract. That is contingent on the rest of the issues being resolved. Sign up here. https://www.reuters.com/world/us/us-east-coast-gulf-coast-ports-employer-says-no-significant-progress-key-2024-11-13/

2024-11-13 20:04

SYDNEY, Nov 14 (Reuters) - House prices in New Zealand rose slightly in October, as falling interest rates inspired confidence among buyers, the Real Estate Institute of New Zealand (REINZ) said on Thursday. Seasonally adjusted median house prices rose 1% in October from the previous month, and by 0.7% on the same time last year, data from REINZ showed. "There seems to be light at the end of the tunnel. Although challenges like the cost of living remain, positive signs are emerging. Falling interest rates, increased inventory in the market, and greater activity during open home events are all reflected in the data for October,” REINZ Chief Executive Jen Baird said in a statement. New Zealand's central bank cut its benchmark rate in August, the first decrease since March 2020, and slashed rates by another 50 basis points last month. Sign up here. https://www.reuters.com/world/asia-pacific/new-zealand-house-prices-rise-october-rate-cuts-boost-confidence-2024-11-13/

2024-11-13 19:56

Canadian dollar falls 0.3% against the greenback Touches its weakest since May 2020 at 1.3999 Price of oil settles 0.5% higher 10-year yield increases 5.1 basis points TORONTO, Nov 13 (Reuters) - The Canadian dollar weakened to a 4-1/2-year low against its U.S. counterpart on Wednesday as investors weighed U.S. inflation data and the prospect of a wider divergence in economic growth between America and Canada. U.S. consumer prices increased as expected in October amid higher costs for shelter such as rents, and progress toward low inflation has slowed in recent months. That could result in fewer interest rate cuts from the Federal Reserve next year, supportive of the U.S. dollar (.DXY) , opens new tab which advanced to a one-year high against a basket of major currencies. "Despite a modest undershoot for the unrounded headline figures, today's U.S. CPI data was still solid across the details," said Nick Rees, senior FX market analyst at Monex Europe Ltd. "This has helped refocus market attention on the growing economic divergence between the U.S. and Canada." The Bank of Canada expects the Canadian economy to grow 1.2% this year compared to 2.8% in the United States. U.S. President-elect Donald Trump is expected to maintain or introduce new tax cuts and loosen business regulations, which could add to growth. The Canadian dollar was trading 0.3% lower at 1.3985 to the U.S. dollar, or 71.51 U.S. cents, after touching its weakest intraday level since May 2020 at 1.3999. The price of oil, one of Canada's major exports, rebounded on short-covering after prices fell near a two-week low in the prior session. U.S. crude oil futures settled 0.5% higher at $68.43 a barrel. Canadian government bond yields moved higher across the curve. The 10-year was up 5.1 basis points at 3.321%, moving back in reach of the three-month high it touched last week at 3.384%. Sign up here. https://www.reuters.com/markets/currencies/canadian-dollar-hits-4-12-year-low-near-140-per-us-dollar-2024-11-13/

2024-11-13 19:52

Republicans gain control of both chambers of Congress This could speed up a new federal debt limit deal next year A unified government also increases long-term fiscal concerns NEW YORK, Nov 13 (Reuters) - A unified government under Donald Trump may offer investors reprieve from the bruising battles around the U.S. debt ceiling that have roiled markets in recent years, even as it raises the prospect of unbridled fiscal expansion that could pressure bonds over the longer term. The President-elect's Republican Party will control both houses of Congress when he takes office in January, Edison Research projected on Wednesday. The so-called Red Sweep gives the Trump administration more leeway to push through its economic platform, including tax cuts and tariffs, which could spur growth while juicing inflation and adding to worries over the U.S. budget deficit. But one-party control of government could also make it easier to come to an agreement on raising the debt ceiling, a cap on borrowing set by the federal government that requires approval by a majority of lawmakers. A debt ceiling showdown last year spurred a sell-off in stocks and bonds, pushed the U.S. to the brink of default and hurt the country's credit rating. "It doesn't solve the fiscal sustainability questions going forward, but if the debt ceiling is less of a concern, it does solve the more near term concerns," said Jonathan Cohn, head of U.S. rates desk strategy at Nomura Securities International. Yields on the benchmark 10-year Treasury hit their highest level in over four months on Nov. 6, suggesting investors were positioning for stronger growth but also higher inflation and wider budget deficits following Republicans' strong showing in the Nov. 5 election. Yields rise when bond prices fall. At the same time, a market measure of the cost of insuring against a U.S. government debt default dropped sharply after the vote. Spreads on U.S. one-year credit default swaps (CDS) stood at 18 basis points on Wednesday from 49 basis points on Election Day, according to S&P Global Market Intelligence data. That followed sharp increases ahead of the election suggesting concerns over a U.S. borrowing-limit political dispute next year - one widely expected outcome of a split government. "The drop in U.S. sovereign CDS certainly reflects the lower risk of a debt ceiling crisis manifesting as a credit event or a default event as long as the same party controls Congress and the Executive," said Thierry Wizman, global FX and rates strategist at Macquarie Group. Democratic President Joe Biden and the Republican-controlled House of Representatives reached a debt ceiling agreement last year that lifted the government's $31.4 trillion borrowing limit, ending months of political brinkmanship and averting a historic default by just two days. The standoff nevertheless earned the U.S. a black eye: rating agency Fitch downgraded the U.S. government's top credit rating by one notch later in the year and Moody's followed by changing its outlook on the sovereign to "negative" from "stable," partly due to political polarization in Congress limiting the government's ability to reach consensus on fiscal reforms. The debt ceiling is set to be reinstated on Jan 2. Strategists estimated the Treasury would reach its so-called X-date, when it runs out of funds to meet all of its debt obligations, in the second half of 2025. Last year's fireworks are unlikely to repeat this time around as "the most contentious debates have come with a Democrat in the White House and Republican control of the House," strategists at JPMorgan wrote. But bond investors might still have their share of worries. Expectations of stronger economic growth and inflation are already pushing many to roll back bets on how deeply the Federal Reserve will cut interest rates next year, weighing on bonds. A unified government could add to those pressures. Moody's, the last of the three major rating agencies to maintain a top rating for the U.S., last week warned the country's fiscal health is at higher risk. Deficit growth could eventually lead investors to demand a higher premium for holding U.S. debt, wrote Naomi Fink, chief global strategist at Nikko Asset Management. "The bond market may experience potential disruptions if external investors demand a higher premium to finance U.S. external deficits," she said. Sign up here. https://www.reuters.com/world/us/red-sweep-may-speed-us-debt-ceiling-deal-stoke-long-term-bond-worries-2024-11-13/

2024-11-13 19:36

WASHINGTON, Nov 13 (Reuters) - U.S. passenger railroad Amtrak said on Wednesday it had restored service after it was forced to temporarily suspend all train service between New York and Washington due to overhead power issues in Philadelphia, disrupting the travel plans of thousands of riders. Amtrak said the suspension was because of downed overhead wires blocking the tracks and trains in service were held at a station until service resumed. Amtrak has faced several major service disruptions in the last six months in New Jersey. Amtrak said it had restored single-track service and said riders should still expect delays of at least 30 minutes as crews continued to work to fully restore service in the area. Amtrak and NJ Transit said in August they had increased examination, inspection and maintenance activities aimed at preventing disruptions. About 12 million passengers traveled in 2023 between Washington and Boston yearly on Amtrak. Amtrak transports about five times as many passengers between New York and Washington as airlines. Separately, Amtrak said service had resumed between New York Penn Station and New Haven, Connecticut after a fire east of Penn Station on Tuesday had halted trains. Sign up here. https://www.reuters.com/world/us/amtrak-temporarily-halts-all-trains-between-new-york-washington-over-power-2024-11-13/

2024-11-13 18:57

Nov 13 (Reuters) - Polish oil refiner Orlen's (PKN.WA) , opens new tab third-quarter net profit was sharply down to 188 million zlotys ($45.7 million) amid writedowns and tumbling refining margins, which hit core business, the company said on Wednesday. The company's EBITDA LIFO, excluding writedowns, came in at 8.81 billion zlotys and the EBITDA at 4.96 billion zlotys, broadly in line with estimates given by the company on Nov. 5 when it said it booked 3.53 billion zlotys in writedowns related to its Orlen Lietuva and petrochemical segments. The group's revenue in the third quarter was 67.94 billion zlotys. Unfavourable market and macroeconomic conditions negatively impacted the refiner's petrochemicals business which recorded an EBITDA LIFO (earnings before depreciation and amortisation, net of the effect of crude price movements on the value of inventories) loss of 118 million zlotys, the company said. On the refining side, the third-quarter EBITDA LIFO profit fell by 72% to 520 million zlotys due to lower volumes, declining refining margins and a stronger Polish zloty against the U.S. dollar. The upstream segment saw a quarterly EBITDA LIFO profit of 3.31 billion zlotys compared with a loss of 211 million zlotys a year ago, when the result was hit by a windfall tax of 3.0 billion zlotys. The company said capital expenditures reached 20.8 billion zlotys in the first nine months of the year and that it further cut the full-year spending plan by 2.3 billion zlotys to around 33 billion zlotys. "This is approximately 5 billion zlotys less than estimated at the beginning of the year. We focus on the most promising investments that will contribute to the growth of the group's value", Orlen's Chief Financial Officer was quoted as saying in a press release. ($1 = 4.1106 zlotys) Sign up here. https://www.reuters.com/markets/commodities/polish-refiner-orlen-q3-net-profit-188-mln-zlotys-takes-353-bln-writedown-2024-11-13/