2024-04-16 19:36

NEW YORK/HOUSTON, April 16 (Reuters) - U.S. President Joe Biden will do what he can to ensure affordable gasoline prices, White House senior adviser John Podesta said at an industry conference on Tuesday, when asked about future releases of crude oil from the Strategic Petroleum Reserve (SPR). The Biden administration in 2022 sold 180 million barrels of oil in about six months from the reserve, the largest ever SPR sale, in an attempt to lower gasoline prices after Russia invaded Ukraine. Republicans slammed the sale, which helped push levels in the reserve to the lowest in about 40 years. "The president did it (release oil from SPR) before ... and I think he wants to keep the price of gasoline affordable and he will do what he can to make sure that happens," Podesta said at the BNEF Summit in New York. He stopped short of saying there would be a release from the SPR any time soon. Meanwhile, the U.S. Department of Energy this month paused its oil repurchase for the SPR due to high oil prices. The Energy Department has previously said it aims to purchase oil for the SPR at a price of $79 per barrel or below, less than the average of about $95 it received for its 2022 emergency SPR sales. Energy Secretary Jennifer Granholm told a Senate hearing on Tuesday that the administration still wants to buy back oil for the reserve, saying "we want to buy back at a rate that is good for the taxpayers." Prices have risen over $79 a barrel on fears that the war between Israel and the Palestinian militant group Hamas could broaden. West Texas Intermediate oil futures were little changed at just above $85 a barrel on Tuesday as economic woes offset support provided by U.S. Treasury Secretary Janet Yellen saying that the U.S. intends to impose new sanctions on Iran after its unprecedented attack on Israel. 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/us-could-release-more-spr-oil-keep-gas-prices-low-senior-white-house-advisor-2024-04-16/

2024-04-16 17:15

April 16 (Reuters) - Bank of New York Mellon (BK.N) New Tab, opens new tab beat Wall Street expectations on Tuesday with a 5% increase in profits, as rising asset values boosted investment services fees, more than offsetting lower interest income for the world's largest custodian bank. The oldest U.S. bank saw its assets under custody increase as hopes of a soft landing for the economy led to a market rally. But income from interest on its portfolio of securities, loans and deposits fell. Lower volatility in foreign exchange markets also hurt profits. "What we see is really strong underlying underpinnings for the U.S. economy," CEO Robin Vince said, echoing the sentiments of other executives in the finance industry. He warned, however, that geopolitical tensions, uncertainty around the trajectory of interest rates and the United States fiscal deficit could have a destabilizing impact. Rival State Street (STT.N) New Tab, opens new tab, which posted results last week, also saw assets under management drive fees, while net interest income declined. BNY said net income applicable to common shareholders rose to $953 million, or $1.25 per share in the first quarter, up from $911 million, or $1.13 per share in the same period last year. Adjusted net income during the quarter was $1.29 per share, while revenue rose 3%, to $4.53 billion - its highest-ever quarterly revenue on an ongoing operating basis. Wall Street expected the lender to report adjusted earnings per share of $1.19 on $4.39 billion of revenues, according to LSEG data. The bank said it had repurchased $988 million worth of shares and its board had authorized a new $6 billion stock buyback program. Assets under custody or administration jumped 5%, to $48.8 trillion. Noninterest expenses grew 2%, to $3.18 billion. INTEREST-RATE UNCERTAINTY Investors have pared their expectations of rate cuts by the Federal Reserve after data last week showed U.S. consumer prices had increased more than expected in March. The Fed's first rate cut is now expected in September, instead of June. Investors also see the central bank reducing its benchmark overnight interest rate by only half a percentage point this year, down from earlier rate-cut expectations that were as high as a full percentage point. Vince said BNY was preparing for all eventualities and that further hikes by the Fed were "not impossible". BNY's shares rose nearly 2% before the bell. They have climbed 5.8% so far this year, versus a 2.4% rise in the KBW Bank Index (.BKX) New Tab, opens new tab. According to analysts, the bank has a more diversified business model compared to rivals and is less exposed to seismic market shifts. 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/business/finance/bny-mellon-quarterly-results-top-wall-st-estimates-higher-services-fees-2024-04-16/

2024-04-16 13:06

MOSCOW, April 16 (Reuters) - Iran's Deputy Oil Minister Morteza Shahmirzaei told a conference in Moscow via video link on Tuesday that his country was working to ensure that energy exports in the Middle East region are carried out without interruption after an attack on Israel. All countries and players should adhere to the principles of "non-harm" to energy producers to ensure stability, he also said through an interpreter. Iran has pledged to respond to any action against its interests, a day after Israel warned it will repsond to Tehran's weekend drone and missile attack. "We continue to do everything to ensure that energy exports in our region are carried out without problems; we are committed to stabilising the energy market," Shahmirzaei said. "We will ensure the stability of the energy market. All countries and players need to adhere to the principles of non-harm to energy producers to ensure stability." Iran produces more than 3 million barrels per day of crude oil, about 3% of global output, as a major producer within the Organization of the Petroleum Exporting Countries (OPEC). 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/iran-working-safeguard-oil-exports-region-official-says-2024-04-16/

2024-04-16 12:36

MOSCOW, April 16 (Reuters) - The work of Russian agricultural companies has not been significantly disrupted by heavy flooding in several regions, Agriculture Minister Dmitry Patrushev said on Tuesday, easing fears about possible crop destruction. The area of spring sowing is approaching 5 million hectares, a slightly higher pace than last year, the minister added. Russia expects to record its second largest harvest in 2024, after a record 147 million metric tons of grain in 2023. The area for this year's harvest will increase by 300,000 hectares to 84.5 million hectares, Patrushev said in January. Winter crops have been sown on 20 million hectares. Swathes of northern Kazakhstan and Russia's Urals region are dealing with the worst floods in living memory as melt waters have swelled the tributaries of the world's seventh longest river system, forcing more than 125,000 people to flee their homes. The agriculture ministry said emergency regimes have been declared in the Orenburg, Altai, Kurgan and Tyumen regions. The Volga river's Samara region is also at risk of wide-scale floods, it said. According to industry experts, the real damage can only be assessed once the waters have subsided. 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/russias-agricultural-sector-largely-unscathed-by-floods-minister-says-2024-04-16/

2024-04-16 12:26

LONDON, April 16 (Reuters) - Howden has started offering war risk cargo insurance to cover vessels sailing through the Red Sea against drone and missile attacks as geopolitical tensions escalate in the region, the UK-based insurance broker told Reuters on Tuesday. The cost of insuring a seven-day Red Sea voyage has risen by hundreds of thousands of dollars since Yemen's Iran-aligned Houthis began attacking shipping in the area in November in a show of solidarity with Palestinians in Gaza. Howden said the new product was the "first dedicated insurance coverage of its kind to protect cargo vessels within an active conflict zone, which encompasses the Bab al-Mandab Strait, the Red Sea, and the Indian Ocean". "The conflict in the Red Sea has presented a significant obstacle to clients with operations in the region. Vessels are seeking protection as they navigate this security hotspot," Ellis Morley, associate director, cargo and commodities, with Howden, added. The insurance has a 12-month term and offers cover of $50 million per vessel, Howden said. Leading marine insurer Markel is one of the lead underwriters on the product, Howden added. "This cover was put in place to provide a competitive option for clients whose war cover had been cancelled," Morley said. "As our facility grows, we have more of a scale of economy and the strategy is to keep our rating at the bottom end of what is available," Morley added, referring to premiums but without giving specific figures. Global shipping is also grappling with increased threats in the Strait of Hormuz on the other side of the Gulf peninsula. Iran's Revolutionary Guards seized a container ship in the strait on April 13 days after Tehran vowed to retaliate for a suspected Israeli strike on its consulate in Damascus on April 1. Iran had said it could close the crucial shipping route. "We could see increasing restrictions on coverage available to clients operating in the Persian Gulf," Morley said. 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/business/finance/broker-howden-launches-red-sea-cargo-war-insurance-ship-risks-surge-2024-04-16/

2024-04-16 12:22

BEIJING, April 16 (Reuters) - China has lifted mad cow disease-related bans on some German beef imports, Chinese customs authorities said on Tuesday, after German Chancellor Olaf Scholz pressed Chinese counterparts for better market access in a visit to Beijing. The easing applies to de-boned beef from calves under 30 months imported from Germany, China's General Administration of Customs said in a Wechat post. The change takes effect from April 16, the date of the announcement. China also agreed to open its borders to beef and apple imports from Germany and facilitate pork imports, Scholz said on Tuesday. Scholz was speaking on the final day of his three-day trip to China, during which he met with President Xi Jinping and pressed Chinese counterparts for better market access, saying Germany did not want to "decouple" from China. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/world/asia-pacific/china-lifts-ban-some-german-beef-imports-germanys-scholz-visits-beijing-2024-04-16/