2024-10-07 19:23

Oct 7 (Reuters) - A Russian missile hit a Palau-flagged vessel in Ukraine’s southern port of Odesa on Monday, killing one Ukrainian national and injuring five foreign nationals, regional governor Oleh Kiper said on Telegram. The attack was the second on a ship in as many days in southern Ukraine. Ukraine's Restoration Ministry earlier said a Russian missile had damaged a civilian Saint Kitts and Nevis-flagged vessel loaded with corn in the port of Pivdennyi on Sunday. Sign up here. https://www.reuters.com/world/europe/russian-missile-hits-palau-flagged-vessel-odesa-second-attack-two-days-2024-10-07/

2024-10-07 18:22

Oct 7 (Reuters) - Milton has rapidly intensified into a category 5 hurricane, the U.S. National Hurricane Center said on Monday. Milton is located about 735 miles (1175 km) southwest of Tampa, Florida, with maximum sustained winds of 160 mph (250 kph), the Miami-based forecaster said. Sign up here. https://www.reuters.com/business/environment/milton-strengthens-category-5-hurricane-us-nhc-says-2024-10-07/

2024-10-07 18:09

Property and casualty insurance stocks slump on Hurricane Milton-related fears Another catastrophe adds to insurers' Florida woes Analysts say the full extent of hurricane season damage still unknown Oct 7 (Reuters) - U.S. property and casualty insurance stocks tanked on Monday after Hurricane Milton intensified into a category 4 storm on its path towards Florida's western coast, marking yet another costly disaster for the industry to cover this year. Insurers are expected to face catastrophe-related claims for billions of dollars from a devastating hurricane season. Catastrophe losses refer to a significant financial hit that insurance companies incur due to large-scale natural or man-made disasters. These events have intensified over the past few years and have significantly hurt profits due to substantial payouts tied to widespread property damage, business interruptions and liability claims. The U.S. has grappled with multiple major hurricanes in 2024, including Hurricane Debby striking Florida in August, Hurricane Francine which made landfall in Louisiana in September, and more recently Hurricane Helene that hit Florida in the same month. The S&P Insurance Select Industry (.SPSIINS) , opens new tab index was last down 3.1% on Monday. MOUNTING LOSSES Severe and frequent natural disasters have exacerbated the industry's retreat from high-risk areas, particularly Florida. The costs of reinsurance have also risen sharply in the state, making it more expensive for insurers to operate. "Investors are not only thinking about the short-term hit to earnings but also the long-term affect weather change and a seasonal uptick in damage will do to the business," said Michael Ashley Schulman, partner and CIO at Running Point Capital Advisors. "Their credit ratings have been largely unaffected in the short term; however, if extreme weather drives people away, their long-term revenue models may be affected," Schulman said. On Monday, Florida was preparing for the largest evacuation since 2017 as Milton intensified in the Gulf of Mexico on its path toward its western coast, coming on the heels of the devastating Hurricane Helene. It had the potential to affect areas already wrecked by Helene. Heritage Insurance (HRTG.N) , opens new tab, which has a big footprint in the state, was last down 25%. Universal Insurance (UVE.N) , opens new tab and HCI Group (HCI.N) , opens new tab fell 18% and 17%, respectively. Sector bellwether Travelers Companies (TRV.N) , opens new tab was last down 4%, while Allstate (ALL.N) , opens new tab and Assurant (AIZ.N) , opens new tab declined 5% and 4.4%, respectively. Meanwhile, Generac (GNRC.N) , opens new tab, which makes generators that power homes during an outage, surged more than 8% on Monday as investors bet on increased demand arising from the hurricane-related disruptions. Insurance broker Aon said in a report late on Sunday there was an increasing risk of life-threatening storm surge and damaging winds for portions of the west coast of the Florida Peninsula beginning Tuesday night or early Wednesday. The U.S. hurricane season is expected to end on Nov. 30. Forecasts have pointed to an above-normal activity this year due to unusually warm sea surface temperatures in the tropical Atlantic, coupled with La Nina weather patterns. "The insurance industry must be prepared for the possibility of a challenging second half of the year," broker Gallagher Re said in a July report. "These conditions, in tandem with the influence of climate change, have aided in more unpredictable and extreme events in 2024." Sign up here. https://www.reuters.com/markets/us/us-property-casualty-insurers-slump-hurricane-season-brings-losses-2024-10-07/

2024-10-07 15:27

JOHANNESBURG, Oct 7 (Reuters) - South Africa's rand gained against the dollar on Monday after tumbling last week, as investors turned their attention towards U.S. inflation data later this week and comments by Federal Reserve officials. At 1502 GMT, the rand traded at 17.40 against the dollar , about 0.5% stronger than its previous close. The rand slipped more than 2% against the dollar last week on growing tensions in the Middle East and comments by the Fed Chair Jerome Powell which dampened expectations of more big rate cuts. "Last week's clear-out should be seen as healthy, as it cleared out stale positions and reset the stage for the next catalyst that might spark a leg of rand appreciation," said Danny Greeff, co-head of Africa at ETM Analytics. A slew of Fed officials are due to speak at events this week, which could give further clues on the central bank's future interest rate trajectory. Focus will also be on U.S. September inflation figures on Thursday. Minutes from the Fed's September meeting on Wednesday are expected to explain the bank's big rate cut last month. "The minutes... will provide insights into the Fed’s aggressive 50bp (basis point) rate cut and could reveal how sensitive the Fed is to economic weakness," said Andre Cilliers, currency strategist at TreasuryONE. With a light domestic calendar, save for monthly mining and manufacturing figures on Thursday, the rand is set to take cues from global drivers. On the stock market, the Top-40 (.JTOPI) , opens new tab index closed little changed. South Africa's benchmark 2030 government bond was slightly weaker, with the yield up 0.5 basis points to 9.21%. Sign up here. https://www.reuters.com/markets/currencies/south-african-rand-gains-against-dollar-focus-us-data-this-week-2024-10-07/

2024-10-07 14:38

Rates decision due on Wednesday at 1300 GMT BOI has kept rates on hold since January cut Israeli inflation rate rises to 3.6% in August Target is 1-3% target Q2 GDP slows to annual 0.7% rate JERUSALEM, Oct 7 (Reuters) - The Bank of Israel (BoI) will keep short-term interest unchanged for a sixth straight policy meeting on Wednesday, as markets maintain their view rising inflation due to the Israel-Hamas war will not lead to lower rates until next year, a showed. All 14 economists polled said they expected the central bank to hold its benchmark rate (ILINR=ECI) , opens new tab at 4.5% when the decision is announced on Wednesday at 4 p.m. (1300 GMT). Driven by supply issues, Israel's annual inflation rate accelerated to a 10-month high of 3.6% in August from 3.2% the previous month, above the government's 1-3% target range. It fell to as low as 2.5% in February. In contrast, Israel's economy grew by a scant annualised 0.7% in the second quarter, or a 0.9% contraction on a per capita basis. "A prolonged war on multiple fronts could weaken economic activity further and heat inflation, raising the risk of stagflation," Barclays economist Zalina Alborova said. Since Oct. 7, 2023, Israel has largely been fighting Palestinian Islamist group Hamas in Gaza in Israel's south. But in response to a year of rockets by Hezbollah, Israel has escalated attacks on Hezbollah in Lebanon in the north - and fears have grown the conflict could widen to Iran. Meitav Dash brokerage chief economist Alex Zabezhinsky said that in normal times, rising inflation, a weaker shekel that adds to price pressures, and a tight labour market would lead to a rate hike but, the war has "forced" the Bank of Israel to hold the line on rates. Central bank officials have said they expect rates to stay put until sometime in 2025, while U.S. and European rates look set to decline further. The bank had cut rates 25 basis points in January, but has since kept them steady. "Obviously, in this situation interest rate reductions are not on the agenda and markets imply some probability for a rate hike in the coming months," Bank Hapoalim economist Victor Bahar said. However, Bahar doubted that in a low growth environment the Bank of Israel would raise rates. "If the security situation causes an accelerated depreciation of the exchange rate, it is more likely that we will see an intervention by the Bank of Israel in the foreign exchange market, as it did at the beginning of the war," he said. The shekel has been volatile. It is up 0.5% versus the dollar on Monday but 2% weaker so far in October and down 5% this year. Also on Wednesday, the central bank will issue updated macro forecasts and Bank of Israel Governor Amir Yaron is scheduled to hold a news conference at 4.15 p.m. Sign up here. https://www.reuters.com/markets/rates-bonds/bank-israel-hold-rates-even-inflation-rises-2024-10-07/

2024-10-07 13:40

Oct 7 (Reuters) - U.S. money market funds saw massive inflows in the week to Oct. 2 as investors sought safer assets on caution ahead of a key payrolls report amid heightened geopolitical concerns in the Middle East. They acquired U.S. money market funds of a net $41.32 billion during the week following about $113.11 billion worth of net purchases in the previous week, according to LSEG Lipper data. A stronger-than-expected September non-farm payrolls report on Friday, however, eased worries about the health of U.S. labour market and pared back market bets of a larger Fed rate-cut in November. U.S. equity funds also gained a significant $30.8 billion worth of inflows during the week, the largest amount since at least December 2020. Large-cap equity funds garnered a hefty $35.49 billion, the highest inflow since at least January 2019. U.S. investors, however, divested mid-cap, multi-cap, and small-cap funds of a net $1.94 billion, $1.72 billion and $1.31 billion, respectively. Among sectoral funds, real-estate, utilities and industrial sectors drew $461 million, $356 million and $321 million worth of inflows, respectively, while healthcare and financials suffered $919 million and $537 million worth of net selling. Demand for U.S. bond funds, meanwhile, eased to the lowest in four weeks as they obtained about $2.8 billion in net purchases. U.S. short-to-intermediate government and treasury funds had 5.03 billion worth of net sales following three weekly inflows in a row. Investors, meanwhile, purchased short-to-intermediate investment-grade, municipal debt, and general domestic taxable fixed income funds of $3.6 billion, $1.88 billion and $852 million, respectively. Sign up here. https://www.reuters.com/markets/us/us-money-market-funds-draw-sharp-inflows-week-oct-2-2024-10-07/