2024-04-18 07:43

PARIS, April 18 (Reuters) - A group of investors in French oil major TotalEnergies (TTEF.PA) New Tab, opens new tab is calling for the company to split the roles of CEO and chairman, which they say could speed up its shift away from fossil fuels. "The separation of functions could improve dialogue with the board... on climate transition issues and ensure a better balance of power at a time when many investors are of the opinion that TotalEnergies' transition strategy is not ambitious enough," says the resolution to be proposed at the company's annual general meeting on May 24. The proposal was put forward by 19 international investors holding roughly 20 million TotalEnergies shares, together with Swiss pension fund investor group Ethos Foundation and the French Sustainable Investment Forum (FIR). The move challenges the dominance of Patrick Pouyanne, who has held the role of CEO and chairman at the world's fifth-largest listed oil company for nearly a decade, spearheading a strategy of growing oil and gas output while also increasing renewables. Pouyanne is up for another three-year mandate at the AGM. "In France the governance of the company is by law a competence of the Board...and the Board is likely not to consider as receivable such a resolution," said a TotalEnergies spokesperson. Climate-focused investors have increased pressure on the world's top oil and gas companies in recent years to cut carbon emissions and move away from fossil fuels production. TotalEnergies does not envision a major reduction in emissions from its products by 2030. At its AGM last year, 30% of TotalEnergies investors voted in favour of faster emissions cuts against the company's recommendation. "We really get the feeling that those investors weren't heard by the board," said Ethos Foundation CEO Vincent Kaufmann. "There was a question about whether to vote against Pouyanne's renewal, but we wanted it to be constructive, not a frontal attack, so this is a consultative poll about what the best governance model should be," Kaufmann added. Fourteen companies listed on France's CAC 40 index have split the roles of chairman and CEO since 2016, while 12 still have a single CEO/chairman. A board chair has the power to set the agenda and filter investor requests, says the resolution, adding that in 2022 the Pouyanne-led board declined to submit a climate-change related resolution to a vote on a technicality that was much debated. Under TotalEnergies' rules New Tab, opens new tab, the lead independent director, who is meant to identify conflicts of interest and to be a counterweight to Pouyanne's dual position, can be dismissed by a vote from the board at any time. Jacques Aschenbroich, TotalEnergies' lead independent director, last month defended Pouyanne's dual management role as "the most appropriate for dealing with the challenges and specificities of the energy sector" because of the "unity of command" it provides Pouyanne in negotiations with countries and other companies. (This story has been corrected to say 'Ethos Foundation' from 'Ethos Fund' in paragraph 10) The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. https://www.reuters.com/business/energy/investors-ask-totalenergies-split-ceo-board-chair-roles-ahead-may-agm-2024-04-18/

2024-04-18 07:31

U.S. weekly jobless claims unchanged at low levels Israel has signalled it will retaliate against Iran April 18 (Reuters) - Safe-haven gold gained on Thursday as persistent tensions in the Middle East added to the metal's appeal despite robust economic data from the U.S. that raised prospects of fewer interest rate cuts. Spot gold firmed 1% at $2,384.83 per ounce at 1:47 p.m. ET (1747 GMT). Prices touched an all-time high of $2,431.29 last Friday. U.S. gold futures settled 0.4% higher at $2,398. In the Middle East, Israel has signalled it will retaliate to a volley of attacks from Iran despite calls for restrain from Western countries but has not said how. "When there are geopolitical tensions, the natural response is for investors to flee to gold, which is happening now. If the conflict further escalates, prices could go north of $2,500-$2,600, and if there is a ceasefire, then they could fall to $2,200," said Everett Millman, chief market analyst with Gainesville Coins. "Central bank purchases are also placing a floor beneath the prices," he added. Bullion's upside came despite data showing U.S. weekly jobless claims were unchanged at low levels last week. Strong U.S. economic data and hawkish rhetoric from Fed officials have prompted investors to drastically rethink the chances of the Federal Reserve cutting rates any time soon. Higher interest rates reduce the appeal of holding non-yielding gold. Bank of China International (BOCI) analyst Xiao Fu said that with rate cut expectations from the Fed coming down and with the natural profit-taking that comes when prices rally quickly, there might be some pressure on gold, but a sharp decline is unlikely. Spot silver rose 0.3% to $28.30 per ounce. "The silver shortage narrative is gaining attention, with demand consistently outpacing new supply. This imbalance could lead to a significant price adjustment in the future," said Alexander Zumpfe, a precious metals trader at Heraeus Metals. "Long-term trends in the silver market remain bullish, and while short-term price movements can be volatile and influenced by futures trading." Platinum gained 0.7% to $944.25 and palladium added 0.1% to $1,027.34. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. https://www.reuters.com/markets/commodities/gold-shines-geopolitical-tensions-offset-easing-us-rate-cut-bets-2024-04-18/

2024-04-18 07:15

DUBAI, April 17 (Reuters) - A storm hit the United Arab Emirates and Oman this week bringing record rainfall that flooded highways, inundated houses, grid-locked traffic and trapped people in their homes. At least 20 people were reported to have died in the deluge in Oman while another person was said to have died in floods in the UAE that closed government offices and schools for days. The storm had initially hit Oman on Sunday before it pounded the UAE on Tuesday, knocking out power and causing huge disruptions to flights as runways were turned into rivers. In the UAE, a record 254 millimetres (10 inches) of rainfall was recorded in Al Ain, a city bordering Oman. It was the largest ever in a 24-hour period since records started in 1949. DID CLOUD SEEDING CAUSE THE STORM? Rainfall is rare in the UAE and elsewhere on the Arabian Peninsula, that is typically known for its dry desert climate. Summer air temperatures can soar above 50 degrees Celsius. But the UAE and Oman also lack drainage systems to cope with heavy rains and submerged roads are not uncommon during rainfall. Following Tuesday's events, questions were raised whether cloud seeding, a process that the UAE frequently conducts, could have caused the heavy rains. Cloud seeding is a process in which chemicals are implanted into clouds to increase rainfall in an environment where water scarcity is a concern. The UAE, located in one of the hottest and driest regions on earth, has been leading the effort to seed clouds and increase precipitation. But the UAE's meteorology agency told Reuters there were no such operations before the storm. WHAT ABOUT ClIMATE CHANGE? The huge rainfall was instead likely due to a normal weather system that was exacerbated by climate change, experts say. A low pressure system in the upper atmosphere, coupled with low pressure at the surface had acted like a pressure 'squeeze' on the air, according to Esraa Alnaqbi, a senior forecaster at the UAE government's National Centre of Meteorology. That squeeze, intensified by the contrast between warmer temperatures at ground level and colder temperatures higher up, created the conditions for the powerful thunderstorm, she said. The "abnormal phenomenon" was not unexpected in April as when the season changes the pressure changes rapidly, she said, adding that climate change also likely contributed to the storm. Climate scientists say that rising global temperatures, caused by human-led climate change, is leading to more extreme weather events around the world, including intense rainfall. "Rainfall from thunderstorms, like the ones seen in UAE in recent days, sees a particular strong increase with warming. This is because convection, which is the strong updraft in thunderstorms, strengthens in a warmer world," said Dim Coumou, a professor in climate extremes at Vrije Universiteit Amsterdam. CAN'T CREATE CLOUDS FROM NOTHING Friederike Otto, a senior lecturer in climate science at Imperial College London, said rainfall was becoming much heavier around the world as the climate warms because a warmer atmosphere can hold more moisture. It was misleading to talk about cloud seeding as the cause of the heavy rainfall, she said. "Cloud seeding can’t create clouds from nothing. It encourages water that is already in the sky to condense faster and drop water in certain places. So first, you need moisture. Without it, there’d be no clouds," she said. Global warming has resulted in "extraordinarily" warm water in the seas around Dubai, where there is also very warm air above, said Mark Howden, Director at the Australian National University's Institute for Climate, Energy & Disaster Solutions. "This increases both potential evaporation rates and the capacity of the atmosphere to hold that water, allowing bigger dumps of rainfall such as what we have just seen in Dubai." Gabi Hegerl, a climatologist at Edinburgh University, said that extreme rainfall, like in the UAE and Oman, was likely to get worse in many places due to the effects of climate change. When conditions are perfect for really heavy rain, there's more moisture in the air, so it rains harder. This extra moisture is because the air is warmer, which is because of human-caused climate change, she said. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/world/middle-east/what-caused-storm-that-brought-dubai-standstill-2024-04-17/

2024-04-18 07:05

MOSCOW, April 18 (Reuters) - Insurance policies for the Nord Stream gas pipelines damaged by blasts in 2022 did not provide for coverage in the case of war, Kommersant New Tab, opens new tab daily reported on Thursday, citing documents filed at London's High Court. Nord Stream is seeking more than 400 million euros ($427 million) from its insurers over the explosions which ruptured pipelines designed to transport Russian gas to Germany. It named Lloyd's Insurance Company and Arch Insurance (EU) DAC (ACGL.O) New Tab, opens new tab as defendants in the suit. Sweden – which in February dropped its investigation – and Germany have both found traces of explosives relating to the incident that ruptured the Nord Stream 1 and Nord Stream 2 pipelines, suggesting it was a deliberate act. Kommersant daily, citing the court documents, said the insurance did not cover damages directly or indirectly resulting from war, military actions or detonation of explosives. Gazprom, Nord Stream AG, Lloyd's and Arch did not immediately reply to requests for comment. Russia and the West, at loggerheads over Moscow's conflict with Ukraine, have pointed fingers at one another. Each has denied any involvement, and no one has taken responsibility. ($1 = 0.9359 euros) The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/world/europe/nord-stream-insurers-say-policies-did-not-cover-war-risks-kommersant-reports-2024-04-18/

2024-04-18 06:48

Short bets on ringgit, rupiah at multi-month highs Investors turn bearish on Indian rupee South Korean won most shorted currency Fed rate cut outlook hurts Asian currencies April 18 (Reuters) - Bearish positions on most Asian currencies firmed, a Reuters poll showed on Thursday, intensifying steadily from the start of the year as repricing of rate cut bets after strong U.S. economic data pushed the dollar higher. Short bets on the Malaysian ringgit jumped to their highest level since mid-July last year, while those on the Indonesian rupiah hit an over five-month high, the fortnightly poll of 11 analysts showed. The Korean won was the most shorted currency by the analysts polled, touching its highest level since October 2022, while bears fortified their positions on Singapore dollar to reach a six-month high. A slew of strong U.S. economic data and persistent inflation prompted some Federal Reserve officials to temper down market expectations of the quantum of rate cuts this year, strengthening the dollar and casting a shadow over emerging currencies. "The stronger dollar trend has certainly added to consternation among officials overseas, with the U.S. to some extent exporting its inflation problem to other countries through the dollar," Michael Wan, senior currency analyst at MUFG wrote. The Indonesian central bank reassured investors on Wednesday of intervening to help steady the rupiah, which has fallen about 5% so far this year and currently trading at a four-year low. The Bank of Korea also signalled readiness to deal with volatile currency moves. Analysts at HSBC see the USD-Asia pairs to eventually moderate later in the year, assuming the Fed begins its policy easing cycle, geopolitical risks are manageable, and USD-RMB remains "reasonably contained". "The risk is that Asian currencies do not even mildly recover and end up going through yet another year of depreciation, if the Fed does not cut rates after all due to a re-accelerating U.S. economy," HSBC said in a note. Meanwhile, short bets on the Chinese yuan ticked higher to reach their highest level since early November, even as the central bank continues to push back against depreciation. Analysts turned bearish on the top-performing currency in emerging Asia, the Indian rupee , for the first time since mid-December. "INR weakness is playing catch-up to AXJ (Asia excluding Japan) weakness as a result of exogenous factors, including a revival of high for longer U.S. rates, lingering geopolitical risks in the Middle East, and renewed volatility in yuan and yen," Christopher Wong, a currency strategist at OCBC said. However, Wong added that the rupee's "softness pales in comparison to regional FX" amid "carry allure, bond inclusion and expectations of policy continuity". The Asian currency positioning poll is focused on what analysts and fund managers believe are the current market positions in nine Asian emerging market currencies: the Chinese yuan, South Korean won, Singapore dollar, Indonesian rupiah, Taiwan dollar, Indian rupee, Philippine peso, Malaysian ringgit and the Thai baht. The poll uses estimates of net long or short positions on a scale of minus 3 to plus 3. A score of plus 3 indicates the market is significantly long on U.S. dollars. The figures include positions held through non-deliverable forwards (NDFs). The survey findings are provided below (positions in U.S. dollar versus each currency): Keep up with the latest medical breakthroughs and healthcare trends with the Reuters Health Rounds newsletter. Sign up here. https://www.reuters.com/markets/currencies/short-bets-asian-currencies-mount-firm-dollar-dents-confidence-2024-04-18/

2024-04-18 06:36

NY Fed President Williams sees no current case for rate cuts Reuters poll: Fed to cut rates in Sept, then once more U.S., Japan, Korea make currency statement NEW YORK, April 18 (Reuters) - U.S. stocks vacillated on Thursday, swinging from red to green and back as investors contended with the push-pull of a strong economy and restrictive Federal Reserve policy. Benchmark Treasury yields resumed their climb and gold added strength as ongoing turmoil in the Middle East bolstered the safe-haven play. All three major U.S. stock indexes wavered throughout the session, with weakness in the chip sector weighing the Nasdaq down the most. The S&P 500 joined the Nasdaq in the red, while the blue-chip Dow eked out a nominal gain. All three indexes were on course for weekly declines. New York Fed President John Williams, citing economic strength，said on Thursday he does not see a convincing case for cutting the central bank's policy rate now. On Tuesday Fed Chair Jerome Powell declined to provide guidance on when rates might be lowered. "Markets are still recalibrating what 'higher for longer' means and whether or not there will be any interest rate cut at all this year from the Fed," said Oliver Pursche, senior vice president at Wealthspire Advisors in New York. "If four months ago I said there's a real possibility the Fed won't lower rates at all in 2024, the response would have likely been that will create a massive sell off in stocks," Pursche added. "So why hasn't it? The reason is corporate earnings seem to be strong, the economy is continuing to perform well and inflation continues to cool down albeit in an uneven manner," he said. A Reuters poll of 100 economists indicated the Fed will implement its first rate cut in September, and cut perhaps once more this year. "Ultimately every central bank prefers being neutral in its policy stance as opposed to either accommodative or restrictive," Pursche said. "The Fed wants to be able to signal that they've done a good job and the best way to do that is to lower rates." Economic data released on Thursday painted a mixed picture, with low jobless claims and solid factory data versus weaker-than-expected home sales and leading economic index readings. The Dow Jones Industrial Average (.DJI) New Tab, opens new tab rose 22.07 points, or 0.06%, to 37,775.38, the S&P 500 (.SPX) New Tab, opens new tab lost 11.09 points, or 0.22%, to 5,011.12 and the Nasdaq Composite (.IXIC) New Tab, opens new tab dropped 81.87 points, or 0.52%, to 15,601.50. European stocks ended higher as upbeat results lifted the benchmark index, offsetting uncertainties surrounding geopolitical tensions and the timing of central bank rate cuts. The pan-European STOXX 600 index (.STOXX) New Tab, opens new tab rose 0.24%, while MSCI's gauge of stocks across the globe (.MIWD00000PUS) New Tab, opens new tab %. Emerging market stocks rose 0.46%. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) New Tab, opens new tab closed 0.57% higher, while Japan's Nikkei (.N225) New Tab, opens new tab rose 0.31%. Treasury yields hovered near their highest levels since November as solid economic data reinforced warnings from Fed officials that the inflation cool-down might have stalled. Benchmark 10-year notes last fell 12/32 in price to yield 4.6326%, from 4.585% late on Wednesday. The 30-year bond last fell 16/32 in price to yield 4.7323%, from 4.699% late on Wednesday. The dollar rose against a basket of world currencies as data affirmed the U.S. economy is on solid ground, supporting the notion that the Fed could delay its first rate cut. The dollar index (.DXY) New Tab, opens new tab rose 0.19%, with the euro down 0.26% to $1.0643. The Japanese yen weakened 0.15% versus the greenback at 154.62 per dollar. Sterling was last trading at $1.2436, down 0.08% on the day. Crude oil prices held near a three-week low as mixed economic data was offset by U.S. sanctions on Venezuela and Iran and simmering Middle East tensions . U.S. crude inched up 0.05% to settle at $82.73 per barrel, while Brent settled at $87.11 down 0.21% on the day. Gold climbed as the safe-haven metal benefited from ongoing Middle East turmoil and the prospect of fewer than expected U.S. rate cuts this year. Spot gold added 0.8% to $2,379.98 an ounce. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. https://www.reuters.com/markets/global-markets-wrapup-1-2024-04-18/