2024-09-30 06:58
MOSCOW, Sept 30 (Reuters) - Russian Deputy Prime Minister Alexander Novak expects oil prices' fluctuations will subside following volatility spurred by the tensions in the Middle East as geopolitical risks are already factored in, he told Al Arabiya News. Novak, who also oversees the broader Russian economy, said the sanctions-hit economy will sustain any pressure and Western-imposed price caps on the country's oil. "We can live through any price," Novak told Al Arabiya News in an interview published on Monday. Oil prices extended gains on Monday, buoyed by escalating concerns over potential supply pressures from Middle East producers following Israel's increased attacks on Iranian-backed forces in the region. "The events occurring here and now in the Middle East are affecting the market, definitely," Novak was quoted as saying in response to a question about the killing of Hezbollah leader Sayyed Hassan Nasrallah. "In recent weeks the prices have been volatile," Novak told the news outlet. "I think things are going to get back to normal," he added. Last week, Brent oil futures fell by about 3%, while U.S. West Texas Intermediate futures declined by around 5% as demand worries increased after fiscal stimulus from China, the world's second-biggest economy and top oil importer, failed to reassure market confidence. Novak said Russia will continue its cooperation with the Organization of the Petroleum Exporting Countries (OPEC) beyond 2025, after which the current deal on oil output curbs by the expanded group known as OPEC+ expires. Sign up here. https://www.reuters.com/business/energy/russias-novak-sees-oil-price-volatility-easing-despite-middle-east-turmoil-2024-09-30/
2024-09-30 06:22
Sept 30 (Reuters) - Financial markets will enter the fourth quarter fizzing with anticipation of a drop in global interest rates from high levels in the past few years and the only question is whether the economy drops off as quickly, or gently slows. Here is your look at what's big in markets in the coming week from Ira Iosebashvili in New York, Rae Wee in Singapore, Yoruk Bahceli in Amsterdam and Marc Jones and Amanda Cooper in London. 1/QUARTER OF CHAOS The third quarter draws to a close on Tuesday after a tumultuous few months. August saw widespread turmoil when the normally docile Japan yen went wild at almost exactly the same time that the Mag 7 tech bulls broke down and the top central banks started to fret again about their economies. Stocks have largely overcome their lurches since, but the yen is about to clinch its best quarterly performance since the 2008 global financial meltdown, benchmark global borrowing costs and oil are both down almost 15% and China is opening the stimulus spigots. So roll on the final leg of the year, which will be dominated by November's U.S. election between Donald Trump and Kamala Harris. But that should be quiet, right? 2/A DELICATE BALANCE The Federal Reserve kicked off its rate-cutting cycle with a 50-basis point reduction on Sept. 18, but employment continues to be a focal point for investors gauging how rapidly the central bank will need to cut monetary policy in coming months. Market participants are keen to see whether next Friday’s data will support Fed Chairman Jerome Powell’s sunny outlook for cooling inflation and resilient growth, a key factor behind the markets' surge to new highs following the central bank’s meeting. Softness in the labour market could revive fears that an economic downturn may be imminent, while unexpectedly strong jobs growth may stir worries that the Fed will not cut rates as deeply as expected as it seeks to avoid an inflation flare-up. Economists polled by Reuters expect the U.S. economy to have created a median of 145,000 jobs in September, versus 142,000 in August. 3/TURNING THE PAGE Factory activity data in China landed on Monday across both the official and private sector surveys, just a week after the country unveiled its most aggressive stimulus package since the pandemic to shore up its ailing economy. Of course, it is too early to see the effects of the measures - ranging from outsized rate cuts to support for stocks - on the economy just yet. Monday's numbers showed Chinese factory activity shrank for a fifth straight month, while the services sector slowed sharply in September. But given the wave of optimism that's swept across global markets in the wake of Beijing's announcement, perhaps investors may for once look past Monday's likely dismal numbers. While China's purchasing managers' index data headlines the economic calendar in Asia, in Thailand, a meeting between the country's government and central bank will also be of note. The two will discuss the domestic inflation target and the recent strength of the baht , having been at loggerheads over delivering a rate cut for months now. 4/GLUM BRITAIN In the race towards neutral rates, the Bank of England is trailing well behind the likes of the Federal Reserve and the European Central Bank. Markets show traders believe the BoE is almost certainly going to cut rates far more slowly than most other major central banks. Upcoming data on second-quarter UK GDP is unlikely to sway the hand of policymakers in London, who are still concerned about pockets of persistent inflation in the economy. The new Labour government has sounded the alarm about the dire state of Britain's finances - something October's budget will seek to address - and consumers are at their most miserable for six months as a result. Figures due in the coming week on mortgage lending and consumer credit might provide some much-needed cheer. 5/DEFLATING Euro zone inflation numbers due on Tuesday will be under close scrutiny, as the ECB decides whether to cut rates again in October. In both France and Spain, consumer prices rose less than expected in September, by 1.5% and 1.7%, respectively. Economists reckon the overall euro zone print fell below the ECB's 2% target for the first time since June 2021 thanks to lower energy prices, though it's expected to rise again in the final months of the year. Investors now see over a 50% chance of a 25 basis-point October rate cut they thought was unlikely just last week as euro zone business activity unexpectedly contracted in September, stoking fears the ECB is behind the curve. Dovish policymakers are now preparing to fight for that cut. Hawks are likely to resist. Traders see inflation falling much faster than the ECB expects. Sign up here. https://www.reuters.com/business/take-five/global-markets-themes-graphic-2024-09-27/
2024-09-30 06:20
Sept 30 (Reuters) - Port of Los Angeles said cargo operations have resumed following last week's fire after a tractor trailer carrying lithium batteries overturned at the Terminal Island. "Port of Los Angeles terminals that were closed as a result of the accident are expected to safely resume full operations Saturday (Sept. 28)," the Port of Los Angeles said in a statement on social media platform X. Roadways including the Vincent Thomas Bridge and Seaside Avenue were open and cargo operations resumed after multiple agencies relocated the trailer to a safe location to burn itself out, the Port said. Operations at Port of Los Angeles had suffered disruptions due to the fire near Ocean & Navy Way on Terminal Island on Thursday, leading to the closure of APM Terminals, Fenix Marine, Everport, and Yusen Terminals. Sign up here. https://www.reuters.com/world/us/cargo-operations-resume-port-los-angeles-2024-09-30/
2024-09-30 06:17
ATHENS, Sept 30 (Reuters) - Two people were found dead in a wildfire which, fanned by strong winds, raged uncontrolled near a rugged mountainous area in the central Greek region of Corinth on Monday, Greek authorities said. Hundreds of firefighters, assisted by nine aircraft, battled the blaze which broke out on Sunday near the seaside town of Xylokastro on the Peloponnese peninsula, some 120 km (75 miles) west of Athens. The blaze had forced the evacuation of several villages. Greek police spokeswoman Constantina Dimoglidou said the recovered bodies were severely burnt and that laboratory tests were necessary for their identification. The fire brigade has launched an investigation, the Greek Citizen's Protection Ministry said. Greece this year has experienced its hottest ever summer after its warmest winter on record, which left large areas with scant or no rain. Sign up here. https://www.reuters.com/world/europe/wildfire-rages-near-seaside-town-central-greece-two-bodies-recovered-2024-09-30/
2024-09-30 05:59
NEW YORK, Sept 30 (Reuters) - The dollar rose on Monday after Federal Reserve Chair Jerome Powell adopted a more hawkish tone on the economy, leading traders to pare bets that the U.S. central bank will cut rates by 50 basis points again at its next meeting. Powell said recent revisions to data on economic growth, savings rates and personal income had removed some "downside risks" the Fed has been focused on. He also said that he sees two more interest rate cuts, totaling 50 basis points, this year as a baseline "if the economy performs as expected," and warned that it will likely take several years before housing services inflation cools to desirable levels. "He took his hawkish pills,” said Steve Englander, head, global G10 FX Research and North America macro strategy at Standard Chartered Bank's NY Branch. “Maybe the market is beginning to worry that they're serious about doing 25 (basis point cuts), because there was a sense that that was just for show that they were going to front load, and here he's talking about upside risks certainly in a way he didn't talk at the FOMC.” The U.S. central bank on Sept. 18 cut rates by 50 basis points, which Powell called a "recalibration" to account for the sharp decline in inflation since last year. Powell noted that the economy remained strong but the central bank wanted to stay ahead of and stave off any weakening in the job market. Traders are currently pricing in a 35% chance of a 50 basis point reduction in November, down from around 37% before Powell's speech and from 53% on Friday, according to the CME Group's FedWatch Tool. The dollar index was last up 0.42% at 100.86. The euro fell 0.34% to $1.1125. The greenback gained 1.17%to 143.85 Japanese yen . Powell's speech comes before a heavy week of U.S. data including the Institute for Supply Management’s manufacturing index on Tuesday and non-manufacturing report on Thursday, as well as job openings data on Tuesday and Friday’s closely watched employment report for September. “This week is really about the jobs data,” said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York. Chandler said that another 50 basis points in cuts this year is most likely, adding that he only expects deeper cuts in the event of a “shockingly poor” employment report, which would be fewer than 100,000 jobs gains and/or a rise in the unemployment rate. Economists polled by Reuters expect employers to have added 140,000 jobs in September and the unemployment rate is expected to stay steady at 4.2%. (USNFAR=ECI) , opens new tab, (USUNR=ECI) , opens new tab Data earlier on Monday showed that German inflation fell to its lowest level since February 2021 this month. Major brokerages, including Goldman Sachs and JPMorgan, now expect the European Central Bank to deliver a quarter-point cut at its Oct. 17 meeting, revising their forecasts on Friday on recent data showing economic weakness and slowing inflation. The Australian and New Zealand dollars gained after China's central bank on Friday lowered interest rates and injected liquidity into the banking system. The Aussie , which is seen as a more liquid proxy for the Chinese yuan, was last up 0.09% at $0.6908. It earlier reached $0.69435, the highest since Feb. 2023. The kiwi was up 0.03% at $0.6342 and earlier reached $0.63790, the highest since July 2023. The yuan weakened 0.37% to 7.008 per dollar in offshore trading . It hit 6.9717 on Thursday, the strongest since May 2023. In cryptocurrencies, bitcoin fell 3.73% to $63,355. Sign up here. https://www.reuters.com/markets/currencies/yen-steadies-dollar-slips-china-reaches-stimulus-2024-09-30/
2024-09-30 05:36
LAS VEGAS/WASHINGTON, Sept 30 (Reuters) - The aftermath of Hurricane Helene interrupted the campaigns of presidential rivals Kamala Harris and Donald Trump on Monday after Harris cut short a campaign trip to fly back to Washington and Trump visited a storm-hit city in the battleground state of Georgia. Democratic Vice President Harris plans to visit the southeast region "soon," according to an official who declined to be identified. The hurricane was responsible for the deaths of over 100 people in North Carolina, South Carolina, Georgia, Florida, Tennessee and Virginia, while millions more faced power outages and destroyed roads. There were no immediate details on when Harris would visit or where she would go. Republican candidate Trump visited Valdosta, a city in the swing state of Georgia, where he thanked local leaders and first responders for their response to the hurricane and pledged "complete solidarity" with those who lost loved ones, homes and businesses. Democratic President Joe Biden said he told North Carolina Governor Roy Cooper he would visit the state later this week, and expects to be there by Wednesday or Thursday. Harris on Sunday flew back to Washington earlier than planned from Las Vegas, Nevada, where she was on a campaign trip, to take part in briefings at the headquarters for emergency management agency FEMA. In remarks after the briefings, Harris called the devastation "heartbreaking." “We will continue to do everything we can to help you recover and to help you rebuild no matter how long it takes," Harris said. She spoke with Cooper, a Democrat, and reached out to Florida Governor Ron DeSantis and Georgia Governor Brian Kemp, both Republicans, to discuss their needs, according to the official. North Carolina and Georgia are among a handful of swing states that will likely decide the White House race between Harris and Trump. Harris' campaign has announced campaign stops in two other battlegrounds, Pennsylvania and Michigan, on Wednesday and Friday, respectively. Vice presidential candidates Tim Walz, a Democrat, and JD Vance, a Republican, will debate on Tuesday. More than 3,300 federal personnel have been deployed as part of the hurricane response, including on search and rescue efforts and restoring power, Biden administration officials have said. Sign up here. https://www.reuters.com/world/us/harris-cuts-campaign-trip-short-hurricane-helene-briefings-2024-09-30/
