2024-05-07 21:54
May 7 (Reuters) - Ukrainian forces attacked an oil storage depot and sparked a large fire, injuring five people late on Tuesday on the outskirts of the Russian-held city of Luhansk in eastern Ukraine, the region's Russia-installed leader said. "Late at night, the enemy made a strike on the peaceful city of Luhansk, shelling an oil storage depot on the edge of the city," Leonid Pasechnik, head of the Luhansk People's Republic, wrote on Telegram. He later reported that five employees of the depot were taken to hospital. All units from the local division of Russia's Emergencies Ministry were deployed to put out the fire and keep nearby buildings safe. Pasechnik suggested, without providing any evidence, that the strike had been carried out by a U.S.-supplied ATACM (Army Tactical Missile System). "Efforts to provide medical assistance to the injured are compounded by the large fire," he wrote. There was no official Ukrainian statement on the incident. Video posted on the sites of both Russian and Ukrainian war bloggers showed a large fire burning some distance from apartment buildings. Ukrainian war bloggers reported the strike, one suggesting it was carried out by a missile. Separatist fighters backed and financed by Russia seized control of large chunks of Luhansk and Donetsk regions in eastern Ukraine in 2014 after Moscow annexed Crimea. Pasechnik became head of the separatist region before Moscow launched its full-scale invasion of Ukraine in February 2022. Russia annexed both regions - as well as Zaporizhzhia and Kherson regions - in September 2022, though it does not have full control of any of them. Sign up here. https://www.reuters.com/world/europe/ukraine-forces-hit-oil-depot-russian-held-city-local-leader-says-2024-05-07/
2024-05-07 21:50
May 8 (Reuters) - A look at the day ahead in Asian markets. Asian markets reach the mid-point of the week still sailing in fairly calm waters, although signs that the recent decline in U.S. bond yields and the dollar is losing steam could be about to suck the life out of the recent rally in risk assets too. There is some evidence over the last 24 hours of this playing out - Hong Kong stocks finally posted a down day on Tuesday, and broad Asian and emerging market equity indexes essentially ended the day flat. That may be nothing more than rational profit-taking and position-trimming. The Hang Seng had been on its longest daily winning streak since 2018, and earlier on Tuesday the MSCI Asia ex-Japan and Emerging Market indexes had hit new 15-month and two-year highs, respectively. Japanese markets, meanwhile, are once again dancing to their own tune with the yen back on the slide after last week's suspected intervention, which has helped lift the Nikkei to its highest since April 15 and close to the 39,000 point mark. There doesn't appear to be any obvious local catalyst on Wednesday to give markets much impetus one way or the other, with only unemployment and trade figures from the Philippines and trade data from Taiwan on the calendar. The yen and Indonesian rupiah could get a steer from their respective central bank chiefs - Bank of Japan governor Kazuo Ueda speaks at a seminar hosted by Japan's Yomiuri newspaper, and Bank Indonesia governor Perry Warjiyo addresses the current economic situation in a briefing with the press. With the yen falling back toward 155.00 per dollar, Japan's top currency diplomat Masato Kanda warned on Tuesday that Tokyo may have to take action against any disorderly, speculative-driven FX moves. Meanwhile, investors got another reminder on Tuesday - as if they needed one - of frayed Sino-U.S. relations when TikTok and its parent company ByteDance sued in U.S. federal court seeking to block a law signed by President Biden that would force the divestiture of the popular short video app or ban it. This comes the same day Chinese President Xi Jinping left France after a two-day trip during which he offered no major concessions on trade or foreign policy, even as President Emmanuel Macron pressed him on market access. French and Chinese companies concluded some agreements on Monday ranging from energy, finance and transport, but most were agreements to cooperate or renewed commitments to work together. Nothing significant enough to suggest icy trade tensions between China and the West are about to thaw. On the corporate front, Japanese automaker Toyota releases full year 2024 earnings. Analysts are expecting record-breaking results from the world's top-selling automaker, lifted by demand for hybrids. Other big firms reporting include Mitsubishi and Yamaha. Here are key developments that could provide more direction to markets on Wednesday: - Bank of Japan Governor Ueda speaks - Taiwan trade (April) - Toyota earnings (FY 2024) Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-graphic-pix-2024-05-07/
2024-05-07 21:35
ELDORADO DO SUL, Brazil, May 7 (Reuters) - Rescuers rushed to evacuate people stranded by devastating floods across the southern Brazilian state of Rio Grande do Sul on Tuesday, with at least 90 dead, thousands left homeless, and desperate survivors seeking food and basic supplies. On the outskirts of Eldorado do Sul, 17 kilometers (10.5 miles) from the state capital of Porto Alegre, many people were sleeping on the roadside and told Reuters they were going hungry. Entire families were leaving on foot, carrying belongings in backpacks and shopping carts. "We've been without food for three days and we've only just got this blanket. I'm with people I don't even know, I don't know where my family is," said a young man who gave his name as Ricardo Junior. The flooding has hampered rescue efforts, with dozens of people still waiting to be evacuated by boat or helicopter from stricken homes. Small boats crisscrossed the flooded town searching for survivors. The state's Civil Defense agency said the death toll had risen to 90 with another four deaths being investigated, while 131 people were still unaccounted for and 155,000 homeless. The heavy rains that began last week have caused rivers to flood, inundating whole towns and destroying roads and bridges. Rain is forecast to let up on Thursday but then continue through the weekend. Climate experts attributed the extreme rainfall in Rio Grande do Sul to the confluence of a heatwave caused by this year's El Niño phenomenon, which warms the waters of the Pacific and brings rain to southern Brazil; a weaker cold front with rain and gales coming from the Antarctic; and unusual warmth in the Atlantic also raising humidity. Global warming exacerbates these phenomena and intensifies the effects between such systems, making weather unpredictable, said Marcelo Schneider, a National Meteorology Institute (Inmet) researcher. ELECTRICITY CUTS In Porto Alegre, a city of 1.3 million inhabitants, downtown streets were under water after the Guaiba River breached its banks with record water levels. Porto Alegre residents faced empty supermarket shelves and closed gas stations, with shops rationing sales of mineral water. The city distributed water in trucks to hospitals and shelters. The floods have also impacted water and electricity services, with more than 1.4 million affected overall, according to Civil Defense. Almost half a million people were without power in Porto Alegre and outlying towns as electricity companies cut off supplies for security reasons in flooded neighborhoods. National grid operator ONS said five hydroelectric dams and transmission lines were shut down due to the heavy rains. The city's airport, its apron under water, has suspended all flights since Friday. Fuel shortages were reported as state-run oil company Petrobras said it was having trouble moving diesel from its refinery in badly-flooded Canoas within metropolitan Porto Alegre, a senior government official said. President Luiz Inacio Lula da Silva said on a government television program that the extent of the damage will not be known until the waters subside. He promised federal aid for the state in what is considered its worst ever climate disaster. JP Morgan economists projected that the impact of the floods on Brazil's economy would be a modest dent in GDP growth and a marginal increase in inflation, mainly due to higher prices for rice that is largely produced in Rio Grande do Sul. The government said Brazil will import rice to stabilize the market. Besides destroying critical infrastructure, the heavy rains and flooding have left grains fields under water and killed livestock, interrupting the soy harvest and halting work at multiple meat plants. The Rio Grande port, a major port for grain exports, was operating normally, the state's port authority said. However, main access roads were impassable, disrupting grain deliveries to the port as trucks had to make a wide detour, exporters said. Sign up here. https://www.reuters.com/business/environment/brazil-floods-leave-150000-homeless-scores-dead-or-missing-2024-05-07/
2024-05-07 21:33
ELDORADO DO SUL, Brazil, May 7 (Reuters) - Rescuers rushed to evacuate people stranded by devastating floods across the southern Brazilian state of Rio Grande do Sul on Tuesday, with 90 reported dead and desperate survivors seeking food and basic supplies. On the outskirts of Eldorado do Sul, 17 kilometers (10.5 miles) from the state capital of Porto Alegre, many people who left their homes were sleeping on the roadside and told Reuters they were going hungry. Entire families were leaving on foot, carrying belongings in backpacks and shopping carts. "We've been without food for three days and we've only just got this blanket. I'm with people I don't even know, I don't know where my family is," said a young man who gave his name as Ricardo Junior. The flooding has hampered rescue efforts, with dozens of people still waiting to be evacuated by boat or helicopter from stricken homes. Small boats crisscrossed the flooded town searching for survivors. The state's Civil Defense agency said the death toll has risen to 90 with another four deaths being investigated, while 131 people are still unaccounted for and 155,000 are homeless. Heavy rains that began last week have caused rivers to flood, inundating whole towns and destroying roads and bridges. In Porto Alegre, a city of 1.3 million inhabitants on the Guaiba river, downtown streets were under water. Porto Alegre residents faced empty supermarket shelves and closed gas stations, with shops rationing sales of mineral water. The city distributed water in trucks to hospitals and shelters. The floods have also impacted water and electricity services, with more than 1.4 million affected overall, according to Brazil's Civil Defense. Almost half a million people were without power in Porto Alegre and outlying towns as electricity companies cut off supplies for security reasons in flooded neighborhoods. National grid operator ONS said five hydroelectric dams and transmission lines were shut down due to the heavy rains. President Luiz Inacio Lula da Silva said on a government television program that the extent of the damage will not be known until the waters subside. He promised federal aid for the state in what is considered its worst ever climate disaster. JP Morgan economists projected that the impact of the floods on Brazil's economy would be a modest dent in GDP growth and a marginal increase in inflation, mainly due to higher prices for rice that is largely produced in Rio Grande do Sul. Besides destroying critical infrastructure, the heavy rains and flooding have left grains fields under water and killed livestock, interrupting the soy harvest and halting work at multiple meat plants. The Rio Grande port is operating normally, the state's port authority said. A major port for grain exports, it has not been affected by a rise in the level of the Laguna dos Patos lagoon which the swollen Guaiba river runs into. However, main access roads were impassable, disrupting grain deliveries to the port as trucks had to make a wide detour, exporters said. Sign up here. https://www.reuters.com/business/environment/brazil-floods-death-toll-rises-90-dozens-still-stranded-2024-05-07/
2024-05-07 21:29
WASHINGTON, May 7 (Reuters) - U.S. President Joe Biden's administration has been holding up certain Boeing-made arms shipments to Israel, four sources familiar with the matter told Reuters, in what two of them said was an apparent political message to the close U.S. ally. The shipments, which have been delayed for at least two weeks, involved Boeing-made Joint Direct Attack Munitions, which convert dumb bombs into precision-guided ones, as well as Small Diameter Bombs. The sources did not elaborate further, including on the politcal nature of the holdups. But they come at a time when Washington is publicly pressuring Israel to postpone its planned offensive in Rafah until after it has taken steps to avert civilian casualties. The White House and Pentagon declined comment. The news of a delayed arms shipment was first reported by Axios over the weekend and Politico first reported on the types of arms delayed and the reasoning on Tuesday. Without addressing whether there had been a holdup in arms shipments, White House press secretary Karine Jean-Pierre reaffirmed that Washington's commitment to Israel's security was "ironclad." Still, when asked about the reports on the arms holdsups, she added: "Two things could be true, in the sense of having those conversations, tough, direct conversations with our counterparts in Israel ... in making sure citizens lives are protected ... and getting that commitment." The Pentagon said on Monday that there had not been a policy decision to withhold arms from Israel, America's closest Middle East ally. Still, the delays appeared to be the first since Biden's administration offered its full support to Israel following Hamas' Oct. 7 attack, which killed about 1,200 people with about 250 others abducted, of whom 133 are believed to remain in captivity in Gaza, according to Israeli tallies. Israel's campaign to destroy Hamas has led to a seven-month-long military campaign that has killed a total of 34,789 Palestinians, most of them civilians, the Gaza Health Ministry said. The conflict has also left many of Gaza's 2.3 million people on the brink of starvation and sparked protests in the U.S. demanding that universities and Biden withdraw support for Israel - including the provision of weaponry. A senior Israeli official, speaking to Reuters on condition of anonymity, did not confirm any specific hold-up in arms supplies but appeared to take the reports in stride: “As the prime minister has already said, if we have to fight with our fingernails, then we’ll do what we have to do.” Sign up here. https://www.reuters.com/business/aerospace-defense/us-has-been-holding-up-several-weapons-shipments-israel-2-weeks-source-says-2024-05-07/
2024-05-07 21:13
May 7 (Reuters) - Oil and gas producers Santos (STO.AX) New Tab, opens new tab and Repsol (REP.MC) New Tab, opens new tab are exploring a sale of a minority stake in oilfields in Alaska they jointly own and develop in a deal that could be worth about $1 billion, according to people familiar with the matter. The oilfields include the Pikka project, which is one of the largest oil prospects in Alaska and has been valued at about $4.5 billion by consultancy firm Rystad Energy. The companies are working with an investment bank to jointly sell minority stakes in Pikka, alongside partial interests in the Horseshoe and Quokka fields that are located in the North Slope region of Alaska, the sources said, requesting anonymity as the discussions are confidential. Repsol and Santos declined to comment. The stakes are so-called non-operating positions, meaning the owner gets a share of the proceeds from the sale of hydrocarbons without needing to undertake any drilling or be involved in operations. They are required to contribute to their share of costs. Potential buyer interest will likely be impacted by factors including legal and environmental risks, the sources said, cautioning a deal is not guaranteed. There are outstanding legal actions related to access to roads in an oilfield neighboring Pikka that is owned by a unit of ConocoPhillips (COP.N) New Tab, opens new tab, the largest operator in the North Slope. North Slope projects have also faced heavy opposition from indigenous residents and conservation groups, who sought to block Conoco's Willow project without success. "In terms of a potential buyer (for Pikka), it would be very challenging to attract a buyer other than ConocoPhillips as of now," said Atul Raina, vice president of upstream M&A analysis at Rystad. Other large operators in the region are focused on assets that are already developed and producing oil, Raina added. Conoco had previously held talks to buy a 15% stake in Pikka when it was controlled by Oil Search, an Australian energy firm that was acquired by Santos for $6 billion in 2021. Those initial talks ended because Oil Search refused to give up its operator rights. It is not clear if Conoco would be interested in the stakes in the Alaska oilfields that are currently for sale. Conoco declined to comment. The Pikka project initially struggled to get off the ground, due to the technical challenges of operating in Alaska and was eventually greenlit in 2022. Santos said last month that it remained on track to get the field under production in 2026. Sign up here. https://www.reuters.com/markets/deals/energy-producers-santos-repsol-explore-sale-stakes-alaska-oilfields-sources-say-2024-05-07/
