2024-10-06 21:47
Oct 7 (Reuters) - A look at the day ahead in Asian markets. Trading in Asia kicks off on Monday with the global macro and market landscape suddenly appearing very different from how it looked on Friday, thanks to a set of U.S. employment figures that not even the most bullish of forecasters expected. The September non-farm payrolls report on Friday was unequivocally strong on all fronts, and throws into doubt the projected path for U.S. interest rates that investors - and perhaps the Fed too - had begun to settle on. The immediate shift in U.S. rate futures markets is clear - a 50 basis point rate cut next month is now completely off the table, and implied pricing is now aligned with Fed Chair Jerome Powell's baseline case of a quarter-point cut at each of the next two meetings. Not only that, the total amount of expected Fed rate cuts over the easing cycle has also been scaled back, pointing to a higher projected "terminal" rate in 2026 of around 3.25%. Traders could continue to raise that higher this week. Soft landing? This might apply to inflation, which still appears to be cooling towards the Fed's 2% target, but not to the economy. With a labor market this hot, a 'no landing' scenario rather than a soft landing is looking more likely. The headline details of the report bear repeating - the 254,000 payrolls figure was higher than all 73 forecasts in a Reuters poll of economists, and only three out of 56 respondents accurately predicted the unemployment rate falling to 4.1%. The U.S. dollar, bond yields and stocks all leaped higher on Friday, reflecting a broad-based vote of investor confidence in the U.S. economy. The dollar index rose more than 2% on the week, its best week in more than two years; Brent crude oil futures rose 9% on the week for their best week since January 2023; and the Dow ended at a record closing high. Revived animal spirits should boost investor sentiment in Asia on Monday, and Nikkei futures point to a rise of around 2.5% at the open in Japan. However, tighter financial conditions via the notable spikes higher in Treasury yields, the dollar and oil warrant caution. Asia's calendar on Monday sees the release of September inflation figures from Thailand. Annual headline inflation is expected to be 0.8%, well up from August's reading. Thailand's inflation target range is 1% to 3%, and inflation has come in below that lower band every single month since April last year except May this year. The finance minister and central bank governor met last week and will meet later this month to discuss the inflation target. The central bank has resisted repeated calls from the government to cut interest rates. Here are key developments that could provide more direction to Asian markets on Monday: - Thailand inflation (September) - China FX reserves (September) - Japan FX reserves (September) Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-graphic-pix-2024-10-06/
2024-10-06 20:56
Half a million people could be ordered to evacuate in Pinellas County Governor warns of higher storm surge, more destruction Biden orders 500 more troops to assist Helene recovery Oct 6 (Reuters) - Florida prepared on Sunday for its largest evacuation since 2017 as Hurricane Milton intensified in the Gulf of Mexico on its path toward the U.S. state's western coast, coming on the heels of the devastating Hurricane Helene. Milton, which strengthened from a tropical storm to hurricane on Sunday, was projected to make landfall on Wednesday as a major hurricane, likely hitting near the heavily populated Tampa Bay area, the U.S. National Hurricane Center said. The new hurricane was expected to affect areas already hit hard by Helene, which made landfall further north on Sept. 26. Kevin Guthrie, director of Florida's emergency management division, urged people to prepare for the "largest evacuation that we have seen most likely since 2017 Hurricane Irma." "I highly encourage you to evacuate," Guthrie told Floridians in a press conference. Milton was about 780 miles (1,255 km) west-southwest of Tampa as of 7 p.m. EDT on Sunday (0000 GMT on Monday), packing maximum sustained winds of 85 mph (140 km) and moving to the east toward Florida at 7 mph (11 kph), the National Hurricane Center said. A hurricane watch was in effect for the northern coast of Mexico's Yucatan Peninsula. The wind speed made it a Category 1 on the five-step Saffir-Simpson scale, though it was likely to be upgraded. The private forecaster AccuWeather expected it would rate a 4 out of 5 on its own scale, capable of widespread catastrophic flooding. Florida Governor Ron DeSantis warned of a potentially higher storm surge and more power outages from Milton compared to Helene, and said destruction from Helene could be compounded. "There are some areas with a lot of debris that is there, so if you get hit with a major hurricane, what's going to happen to that debris? It's going to increase the damage dramatically," DeSantis said. "This is all hands on deck to get that debris where it needs to be." Pinellas County, which includes the city of St. Petersburg, on Monday was likely to issue mandatory evacuations for more than 500,000 people in the lowest lying areas, Sheriff Bob Gualtieri told a press conference. He urged people to heed evacuation orders after he said too many ignored them for Helene, resulting in 12 deaths in the county and 1,500 emergency calls that were unable to be answered. The county already ordered the evacuation of six hospitals, 25 nursing homes and 44 assisted living facilities totaling 6,600 patients, said Cathie Perkins, director of the county's emergency management. School was canceled from Monday to Wednesday. "We already will be rebuilding for years because of Hurricane Helene, and that will be exacerbated by the impacts of this storm," St. Petersburg Mayor Ken Welch said. "Remember, Hurricane Helene was 100 miles (160 km) away from us, moving in a different direction. This is a powerful Cat 2 or Cat 3 hurricane headed directly for us." North Carolina, Florida and much of the South are still recovering from the massive destruction caused by Helene, which killed more than 200 people across six states, making it the deadliest named storm to hit the mainland U.S. since Hurricane Katrina killed nearly 1,400 people in 2005. U.S. President Joe Biden said on Sunday he ordered another 500 active-duty troops to move into western North Carolina and assist with the Helene response and recovery efforts, increasing the number to 1,500. They join a massive state and local recovery effort plus 7,000 people from the federal workforce and 6,100 National Guard personnel, the White House said. The Biden administration has approved $137 million in federal assistance and promised more aid would be forthcoming, as the economic damage is projected to soar into the billions of dollars. Sign up here. https://www.reuters.com/world/us/another-major-storm-milton-due-hit-florida-heels-helene-2024-10-06/
2024-10-06 19:05
Oct 6 (Reuters) - Saudi King Salman will undergo medical tests on Sunday evening for lung inflammation, the state news agency said, citing a statement from the royal court. The brief statement did not reveal more details. The 88-year-old king of the world's biggest oil exporter, a major U.S. ally in the Middle East, also received medical care for lung inflammation in May. Salman last chaired a cabinet meeting in August, less than two weeks after a royal decree issued by him allowed the cabinet to convene in the absence of the king, crown prince or both. The decree said that in their absence it would be chaired by the eldest member of the cabinet who is a descendant of Salman's father King Abdulaziz Al Saud, founder of the Saudi state. Sign up here. https://www.reuters.com/world/middle-east/saudi-king-salman-undergo-medical-tests-lung-inflammation-state-news-agency-says-2024-10-06/
2024-10-06 19:02
TRUSINA, Bosnia, Oct 6 (Reuters) - Women sat on the ground in tears in the Bosnian village of Trusina on Sunday as an excavator dug through the remains of their homes that were destroyed in the country's deadliest floods in years. A flash flood swept through the Jablanica area, southwest of Sarajevo on Friday, killing at least 15 people, the cantonal government said, and the search for those missing continued on Sunday. In Trusina, no people were reported to have died, but houses, orchards and gardens were devastated. "It is difficult to believe that an orchard, garage, car and another smaller house was here," Duda Sutlic said "Everything disappeared in 10 minutes." "I was happy here. I had a life and I worked hard. Today I have no strength. All we have left now are our pensions - 500 marka ($282.21)." A meteorologist Nedim Sladic told N1 TV that in under six hours, the region around Jablanica received as much rain as usually falls in three or four months. Ecologists say the floods in Bosnia have been particularly damaging because years of neglect of river beds, deforestation and uncontrolled construction and exploitation of wood and stone have aggravated the impact of climate change. Other parts of Europe have also been hard hit by flooding as well as extreme heat and wildfires. "Everything that my father created and that I have created after him disappeared in 30 minutes," Admir Poturovic, another resident of Trusina said. "But life goes on. One has to move on" he said. ($1 = 1.7717 marka) Sign up here. https://www.reuters.com/world/europe/bosnian-villagers-sift-through-ruined-homes-after-devastating-flash-floods-2024-10-06/
2024-10-06 18:24
WASHINGTON, Oct 6 (Reuters) - U.S. President Joe Biden said on Sunday he ordered another 500 active-duty troops to move into western North Carolina and assist with the response and recovery efforts after the deadly and devastating Hurricane Helene. "With a total of 1,500 troops now supplementing a robust on-the-ground effort – including more than 6,100 National Guardsmen and more than 7,000 Federal personnel – my Administration is sparing no resource to support families as they begin their road to rebuilding," Biden said in a statement. He also said he was being briefed on tropical storm Milton as it strengthened across the Gulf of Mexico. Sign up here. https://www.reuters.com/world/us/biden-approves-more-troops-move-north-carolina-hurricane-helene-response-2024-10-06/
2024-10-06 12:45
DHAKA, Oct 6 (Reuters) - At least five people have died and more than 100,000 remain stranded as devastating floods, triggered by heavy rains and upstream torrents, continue to ravage northern Bangladesh, officials said on Sunday. In Sherpur, one of the hardest-hit northern districts, the water levels of major rivers have surged, submerging new areas and displacing thousands of families. Local authorities fear widespread damage to agriculture, with crops and farmlands, particularly rice fields, facing potential devastation. Many homes and roads are under several feet of water, cutting off villages and leaving residents in desperate need of rescue. "I have never seen such flooding in my life," said Abu Taher, a resident of the district. Army personnel, using boats and helicopters, have joined rescue efforts, delivering emergency supplies and evacuating those trapped by the floods. Bridges have collapsed, and roads have been submerged, making it difficult for local authorities to reach affected areas. "Our priority is to evacuate people to safe shelters and provide them with essential supplies," said Sherpur district administrator Torofdar Mahmudur Rahman. He said another decomposed body, suspected to have floated from India, had been found. The low-lying nation of 170 million has experienced multiple floods this year, underscoring its vulnerability to climate change. A 2015 World Bank Institute analysis estimated that 3.5 million people in Bangladesh are at risk of annual river flooding, a risk scientists say is worsening due to global climate change. As water levels continue to rise, concerns grow about the long-term impact on the region's agriculture, particularly rice crops. If the floodwaters do not recede soon, the economic toll on farmers could be severe. Adding to the worries, the weather office has predicted more rain in the coming days, raising fears of further inundation. The floods in August in eastern Bangladesh, which left more than 70 dead, caused damage estimated at $1.20 billion, according to a study by the Centre for Policy Dialogue, a leading think-tank. The United Nations and its partners have launched a $134 million humanitarian appeal to provide urgent relief and support to communities affected by ongoing floods and cyclones in Bangladesh. Sign up here. https://www.reuters.com/world/asia-pacific/floods-bangladesh-leave-five-dead-thousands-stranded-2024-10-06/
