2024-05-03 20:19
NUEVA ECIJA, Philippines May 3 (Reuters) - Ruins of a centuries-old town have emerged at a dam parched by drought in northern Philippines, giving residents a rare spectacle and an extra source of income in a region dependent on rice-growing. Following a prolonged spell with little rain, the dried-up dam has revealed parts of a sunken church and foundations of old structures from the old town in Nueva Ecija province in recent weeks. "When I heard about the sunken church of old Pantabangan town resurfacing, I got excited and wanted to see it," said 61-year-old retired nurse Aurea Delos Santos. Some locals have cashed in on the attraction, ferrying tourists to the island. "Back then, I was only earning 200 pesos ($3.50) from fishing, but when the tourists arrived, I'm earning 1,500 to 1,800 per day," said fisherman Nelson Dellera. The old town was relocated in the 1970s during the construction of a dam, which now serves as the main irrigation and water source for Nueva Ecija and nearby provinces, according to the local government. The Philippines and other countries in Southeast Asia have been grappling with extreme heat, prompting schools to suspend classes and governments to urge people to stay indoors to prevent heat stroke. Sign up here. https://www.reuters.com/world/asia-pacific/parched-philippine-dam-reveals-centuries-old-town-luring-tourists-2024-05-03/
2024-05-03 20:17
May 3 (Reuters) - Ukraine's central bank introduced its largest wartime currency liberalization measures on Friday aimed at easing restrictions for businesses, more than two years after Russia's invasion prompted the imposition of tough restrictions. Most of the new provisions take effect on May 4. A package of liberalisation measures had been expected for some time to support business and soften restrictions on capital outflows and tight foreign exchange controls imposed after the February 2022 invasion. The Ukrainian economy shrank by about a third in the first year of the war. Under the new regulations, posted on social media, currency restrictions are to be lifted on imports of goods and services, restrictions on repayments of newly contracted external loans are eased, and restrictions on transferring foreign currency from representative offices to parent companies are eased. The provisions also allow for business to repatriate "new" dividends, a measure to take effect on May 13. A central bank statement said the measures were taken with due consideration for the necessary prerequisites. "Careful analysis confirms that the changes should not create additional risks for macro-financial stability and stability of the foreign exchange market," it said. The changes, it said, had already been taken into account in updated macroeconomic forecasts, including maintaining international reserves close to the current level of $43 billion to $44 billion. Central bank governor Andriy Pyshnyi, writing on Facebook, described the moves as a "very tangible step" that would provide business with "opportunities to enter new markets or bring in investments". "This step, along with other measures...should allow Ukrainian business to 'breathe to its full potential' and promote the involvement of private capital in the recovery of the economy," he wrote. Ukraine's economy, bolstered by financial aid from its Western partners, posted 5.3% growth last year and is forecast to expand by 3% this year. Sign up here. https://www.reuters.com/markets/currencies/ukraine-central-bank-introduces-largest-wartime-currency-liberalization-measures-2024-05-03/
2024-05-03 20:05
May 3 (Reuters) - Occidental Petroleum (OXY.N) New Tab, opens new tab is exploring a sale of a part of its operations in the Permian Basin that could fetch more than $1 billion for the energy producer, according to people familiar with the matter. The company's divestment effort is linked to Occidental's broader plan to slash its debt, which stood at $18.5 billion at the end of 2023, the sources said, requesting anonymity as the discussions are confidential. Occidental, which is backed by Warren Buffett's Berkshire Hathaway (BRKa.N) New Tab, opens new tab, is working with a financial adviser on the sale process for the assets in the Barilla Draw region of Texas, which is located within the Delaware portion of the Permian basin, the sources said, cautioning a deal is not guaranteed. A spokesperson for Occidental declined comment. In February, Occidental's long-time Chief Executive Vicki Hollub said the Federal Trade Commission's (FTC) second request for information on the company's $12 billion takeover of CrownRock had pushed back the deal's closing date to the second half of this year, forcing the Houston-based oil producer to postpone planned asset sales worth up to $6 billion. Occidental plans to take on $9.1 billion of new debt to help fund its deal for CrownRock. However, Occidental has kicked off the sale process for the Barilla Draw assets, as it sees an opportunity to attract strong interest from other Permian oil producers who have completed their recent dealmaking spree, the sources said. The assets cover approximately 27,500 net acres and produces around 24,400 barrels of oil equivalent per day, the sources added. Sign up here. https://www.reuters.com/markets/deals/occidental-explores-sale-permian-assets-worth-over-1-billion-sources-say-2024-05-03/
2024-05-03 20:03
ABUJA, May 3 (Reuters) - Major oil companies such as Exxon Mobil (XOM.N) New Tab, opens new tab and Shell (SHEL.L) New Tab, opens new tab that aim to exit Nigeria's onshore oil can get quicker approval to do so if they take responsibility for spills rather than wait for authorities to apportion blame, the regulator said on Friday. Exxon, Shell, TotalEnergies (TTEF.PA) New Tab, opens new tab, and Eni (ENI.MI) New Tab, opens new tab have all sought to leave Nigeria's oil-rich Niger delta in recent years citing security concerns, including theft and sabotage, to focus on deepwater drilling. However, their exits have been delayed by regulatory hurdles. At a meeting with the companies in Abuja, Nigerian Upstream Petroleum Regulatory Commission (NUPRC) chief Gbenga Komolafe offered a short-term option with faster approval if the companies commit to cleaning up spills and compensating communities. "We have the undertaking here. The consent here though fixed for June, could be much shorter," he said. "If you agree to take that option, you sign the undertaking knowing that there are obligations to be fulfilled," Komolafe said. The second long-term option involves waiting for NURPC to identify and assign all liabilities, potentially delaying the final approval until August. NURPC is seeking to balance a faster exit for oil majors with protecting the environment, local communities, and the long-term viability of the assets. The companies are reviewing the options and will respond soon, they said. Analysts say the accelerated option could cost oil majors millions of dollars for cleanups and reparations. "The risk with option 1 is the transferor will continue to take responsibility for the asset until the process is completed while option 2 puts them at the mercy of the regulator since they waived their right to deemed approval," said Ayodele Oni, energy lawyer at Lagos-based Bloomfield law firm. The departure of the majors means a total of 26 onshore blocks are on offer, holding an estimated reserve of 13.76 billion barrels of oil, 2.70 billion barrels of condensate, and about 90,717 billion cubic feet of gas, NUPRC said. "We aim to ensure that the companies that take over these blocks have the necessary financial resources and possess the technical expertise required to responsibly manage the blocks throughout their lifecycle in accordance with good asset stewardship practices," Komolafe said. NUPRC has engaged two global oil and gas decommissioning consultants, S&P Global Commodity Insights and Boston Consulting Group, to carry out due diligence on the assets to be divested. Sign up here. https://www.reuters.com/world/africa/oil-majors-offered-faster-nigerian-exit-if-they-pay-cleanup-2024-05-03/
2024-05-03 16:16
LONDON, May 3 (Reuters) - Former Odey Asset Management (OAM) portfolio manager James Hanbury has said in a letter to investors that passive and systematic trading strategies have grown so much that those trading on company fundamentals might be hurt. The Lancaster Absolute Return Fund, which Hanbury runs with ex-Odey colleague Jamie Grimston, returned 2.9% for the month of March and was up 1.4% for the year to March 31, said the letter seen by Reuters on Thursday. The Lancaster Absolute Return Fund oversees 646 million pounds ($813 million) in investments. In the letter, Hanbury said stock market trading had become more volatile after company earnings or announcements. He attributed this to the growth of passive investing. Passive funds typically track the performance of a particular market or index and are programmed to run automatically, rather than being managed by someone making investment decisions. As these systematic and passive strategies have grown bigger proportionately to others, they have increasingly affected stock prices, the letter said. Investors operating outside these big trading programs and trading on a company's outlook were essentially 'buying blind', Hanbury said. "Most investors buying a passive fund have no idea they are on a momentum trade and clearly they are adding to the weight of money that does not understand what it owns," he said. The Lancaster Absolute Return Fund made money on long positions in large banks such as Barclays (BARC.L) New Tab, opens new tab, NatWest (NWG.L) New Tab, opens new tab and Deutsche Bank (DBKGn.DE) New Tab, opens new tab, the letter said. All of these companies did not immediately respond to a request for comment except for Deutsche Bank, which declined to comment. Short positions on private equity cost the hedge fund performance but Hanbury remains committed to the trade. A short position bets an asset will fall in value. Hanbury moved to Lancaster Investment Management in July. ($1 = 0.8226 pounds) Sign up here. https://www.reuters.com/business/ex-odey-portfolio-manager-hanbury-warns-investors-are-buying-blind-2024-05-03/
2024-05-03 13:52
May 3 (Reuters) - Inflation should continue to decline even as the U.S. central bank holds its benchmark interest rate steady at current levels, Federal Reserve Governor Michelle Bowman said on Friday while also reiterating her willingness to raise the policy rate if progress peters out or reverses. "My baseline outlook continues to be that inflation will decline further with the policy rate held steady, but I still see a number of upside inflation risks that affect my outlook," Bowman said in prepared remarks for a speech to a banking conference in Key Biscayne, Florida. "While the current stance of monetary policy appears to be at a restrictive level, I remain willing to raise the federal funds rate at a future meeting should the incoming data indicate that progress on inflation has stalled or reversed," Bowman added. In her speech, Bowman made clear she expects inflation to remain elevated for some time, highlighting a number of factors that could keep it from falling back to the Fed's 2% goal. Those include a lack of further supply-side improvements such as last year's healing of supply chains, lower energy prices and increased immigration, all of which helped put downward pressure on inflation. Bowman also cited risks from spillovers from conflicts abroad as well as a recent loosening in financial conditions, which could cause inflation to re-accelerate And at a time when Fed officials are keenly focused on the persistence of stronger-than-expected housing inflation, Bowman proposed a potential new wrinkle in the expectation that those pricing pressures will abate. "Given the current low inventory of affordable housing, the inflow of new immigrants to some geographic areas could result in upward pressure on rents, as additional housing supply may take time to materialize," Bowman said. Sign up here. https://www.reuters.com/markets/us/feds-bowman-supports-current-policy-stance-still-sees-inflation-risks-2024-05-03/
