2024-04-15 07:35

JERUSALEM, April 15 (Reuters) - Israel's shekel rose 1% against the dollar on Monday as it became clear that Israel has so far complied with requests by allies not to hit back at Iran after Saturday's attack. In what market players said was a "relief rally", the shekel stood at 3.73 per dollar, from Friday's close of 3.771. It was the market's first reaction to the strike by more than 300 missiles and drones from Iran as the local foreign exchange market does not trade on Sundays. Despite Monday's move, the shekel was still nearly 2% weaker against the dollar this month and 4% lower so far in 2024. The shekel fell last week on fears that an Iranian attack was imminent after a suspected Israeli airstrike on Iran's embassy compound in Syria on April 1. Tel Aviv stock indices gained 0.3% on Sunday. Shares rose early in the session on Monday but turned lower late in the day. Government bond prices fell as much as 0.6%. Investors believe "that the whole episode against Iran will not escalate out of control," said Jonathan Katz, chief economist at Leader Capital Markets. He noted that markets are relieved that Israel received international support in the wake of the Iran attack, while U.S. President Joe Biden and other allies have told Israel not to retaliate. He also said that military decisions in Israel were being made by Prime Minister Benjamin Netanyahu and his narrow war cabinet and not by far right wing lawmakers in his coalition. "Markets are encouraged that will not escalate significantly and even if Israel does some retaliation hopefully it'll be limited and under the auspices of the U.S. so all that's generally positive for the shekel," Katz said. 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/shekel-gains-vs-dollar-relief-israel-has-not-struck-back-iran-2024-04-15/

2024-04-15 06:53

Iran says it considers retaliation against Israel to be over Benchmarks had risen in anticipation of Iran's attack U.S. shale oil output seen rising, EIA says Uncertainty remains over Israeli response NEW YORK, April 15 (Reuters) - Oil prices slipped lower on Monday after Iran's weekend attack on Israel proved to be less damaging than anticipated, easing concerns of a quickly intensifying conflict that could displace crude barrels. Brent futures for June delivery settled at $90.10 a barrel, down 35 cents, or 0.4%. U.S. crude futures for May delivery fell 25 cents, or 0.3%, to end at $85.41 a barrel, Oil dropped by more than $1 a barrel earlier in the session before paring some losses after Reuters reported that Prime Minister Benjamin Netanyahu had summoned his war cabinet for the second time in less than 24 hours, citing a government source. The benchmarks had risen on Friday in anticipation of Iran's retaliatory assault, with prices soaring to their highest since October. Israel's interception of Iran's attack, which involved more than 300 missiles and drones, calmed fears of a regional conflict affecting oil traffic through the Middle East. "The success of the Israeli defense implies that the geopolitical risk has pulled back considerably," said Bob Yawger, director of energy futures at Mizuho bank. Strong U.S retail sales data from the Commerce Department also hindered oil prices, Yawger added, by increasing the likelihood that interest rates in the world's biggest economy would remain higher for longer and reduce demand for oil. "The key term in that whole scenario is demand destruction," Yawger said. In the Middle East, Iran saying it considers its retaliation to be over has further lowered the geopolitical temperature, said Kpler analyst Viktor Katona. Meanwhile John Evans at oil broker PVM said the Iranian drone and missile attack was "about as telegraphed a world event that people can remember." "They might as well have had big disco lights on them and towed banners with ‘come on, ladies and gentlemen, please shoot me down.’" The attack, which Iran called retaliation for an air strike on its Damascus consulate, caused only modest damage, with missiles shot down by Israel's Iron Dome defence system. Iran produces more than 3 million barrels per day of crude oil as a major producer within the Organization of the Petroleum Exporting Countries (OPEC). Middle East hostilities centred on the Israel-Hamas conflict in Gaza have had little tangible impact on oil supply so far. "If the crisis does not escalate to a point that creates supply disruptions, then there will be downside risk over time, but only once it becomes clear Israel has chosen a measured response," said Amrita Sen, founder and director of research at Energy Aspects. Rising U.S. oil output also weighed on oil prices, with the U.S. Energy Information Administration saying output from top shale-producing regions will climb by more than 16,000 barrels per day (bpd) to 9.86 million bpd, or the highest level in five months. 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/oil-prices-fall-after-iran-attack-market-draws-down-risk-premium-2024-04-15/

2024-04-15 06:26

Bullion hit all-time high of $2,431.29 per ounce on Friday Fed's Collins eyes about two rate cuts this year Gold to trade near $2,500/oz, silver to move above $31/oz by end-2024 - ANZ April 15 (Reuters) - Gold prices firmed on Monday, hovering near record-high levels hit in the previous session, as traders kept a close eye on developments surrounding the Middle East conflict, prompting safe-haven buying of assets such as bullion. Spot gold was up 0.5% at $2,353.64 per ounce, as of 0743 GMT, after hitting an all-time high of $2,431.29 on Friday. U.S. gold futures was steady at $2,370.00. "Gold remains in vogue as a financial asset given the combination of geopolitical risks and the prospects of Fed interest rate easing in the second half of the year," said Tim Waterer, chief market analyst, KCM Trade. "In many respects, gold is taking on the appearance of being as 'asset for all occasions' given its ability to rally under varying market dynamics in 2024." Bullion rose above the $2,400 level in the previous session and has gained over 14% so far this year, fuelled by strong central bank buying, safe-haven inflows amid continued geopolitical risks. Despite recent U.S. economic data showing strong labor market and high inflation, Federal Reserve Bank of Boston President Susan Collins is eyeing a couple of interest rate cuts this year. Lower interest rates reduce the opportunity cost of holding bullion. China's physical gold premiums rose last week, driven by strong demand to shore up a depreciating yuan, while record-high prices in India forced dealers to offer discounts for a sixth straight week. Spot silver rose 1.9% to $28.41 per ounce, after touching its highest level since early 2021 on Friday. "Silver is set to outperform gold as investment flows surge amid record-high gold prices. We expect gold to trade near $2,500/oz and silver to move above $31/oz by the end of 2024," analysts at ANZ Research wrote in a note. Platinum fell 0,3% at $970.68 and palladium lost 0.3% to $1,046.73. 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-firms-middle-east-conflict-buoys-safe-haven-appeal-2024-04-15/

2024-04-15 06:13

More than 111,000 evacuated in Kazakhstan floods Russia tells residents to leave parts of Kurgan Tobol River rising fast Tomsk region also facing rising waters PETROPAVLOVSK, Kazakhstan, April 15 (Reuters) - Swathes of northern Kazakhstan and Russia's Urals region were flooded on Monday as melt waters swelled the tributaries of the world's seventh longest river system, forcing more than 125,000 people to flee their homes. Russia's southern Ural region and northern Kazakhstan have been grappling with the worst flooding in living memory after very large snow falls melted swiftly amid heavy rain over land already waterlogged before winter. That has swelled the tributaries of the Ob, which rises in the Altai Mountains of southern Siberia and empties into the Arctic Ocean, beyond bursting point, leaving some cities in Russia and Kazakhstan under water. A Reuters journalist said several districts of the northern Kazakh city of Petropavlovsk were completely flooded. The city which sits on the Ishim River, a tributary of the Irtysh, the chief tributary of the Ob. Almost 1,000 houses have been flooded in the North Kazakhstan region of which Petropavlovsk is the centre, and over 5,000 people have been evacuated, local officials said. There have been interruptions in power and water supply in the city. People were queuing up in front of water trucks moving from one neighbourhood to another in the city. The main reservoir supplying the city with drinkable water has been flooded. Just a few hundred kilometres over the border, Russia's Kurgan, a region of 800,000 people at the confluence of the Ural mountains and Siberia, was grappling with flooding and rising water levels in the Tobol River, another tributary of the Irtysh. Water levels rose to 6.31 metres (over 20 ft) in the main city, Kurgan. Governor Vadim Shumkov said the main mass of water was 10 km away from the city. "The volume of water is colossal," Shumkov said. "In addition to the waters of the Tobol itself and melt water pouring into it, there is 1.3 billion cubic metres of water coming from Kazakhstan, which... is twice as much as in 1994 (when Kurgan was flooded for a month)." "Fellow countrymen, leave the flooded areas immediately." Shumkov warned that flooding would begin shortly on the right bank of the Tobol, which slices the region south to north, and the low part of its left bank. Floods were also inundating homes in the Tomsk region in the southwestern part of Siberia, regional officials said on Telegram. Almost 140 houses near the city of Tomsk, which is the regional administrative centre, were under water on Monday and 84 people were evacuated. The Ob-Irtysh river system is the world's seventh largest, after the Yellow River, the Yenisei, the Mississippi, the Yangtze, the Amazon and the Nile. Kazakhstan was also evacuating settlements in its West Kazakhstan region, expecting fresh inflows of water in the Ural river in the coming days. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/world/europe/rising-waters-russias-kurgan-expected-peak-monday-2024-04-15/

2024-04-15 06:05

FRIEBERG, Germany, April 15 (Reuters) - European governments due to move to support their solar power manufacturers this week will be too late to stop solar panel maker Meyer Burger packing up a German factory to send production to the United States. The plant in Freiberg in eastern Germany closed in mid-March with the loss of 500 jobs, as the Swiss-listed firm joined a growing list of European renewable energy manufacturing factories shutting down or moving. In the past year, at least 10 have said they are in financial difficulties. On a recent visit to the site, giant white robotic arms hung dormant over empty wooden pallets as workers prepared the last production line for shutdown. Talks with the German federal government to try to secure a future for the factory ended without success in late March, a company spokesperson told Reuters. Germany's economy ministry said it was aware of the "very serious situation" of German companies and has been examining funding options with the industry for over a year. It agreed to give Meyer Burger an export credit guarantee for equipment produced in Germany to be used at the U.S. factories, which will help a site nearby but won't save the Freiberg one. The closure, which in one sweep reduced European solar panel production by 10% New Tab, opens new tab, comes despite a boom in wind and solar energy in Europe. Additions to renewable energy capacity, including solar panels, are running at record pace New Tab, opens new tab, according to data from the International Energy Agency. But Europe-based manufacturers that supply those panels are being crushed by competition from China and the U.S., whose governments give more support to their producers. The situation poses a dilemma for European governments keen to fight climate change: Either offer more support to ensure local production can stay competitive, or allow the unfettered flow of imports to keep up the pace of installations. A meeting in Brussels between European energy ministers on Monday will make a gesture of support for the struggling industry. China is expanding solar output and now accounts for 80% of the world's solar manufacturing capacity. The cost of producing panels there is around 12 cents per watt of energy generated, compared with 22 cents in Europe, according to research firm Wood Mackenzie. U.S. subsidies announced as part of the 2022 Inflation Reduction Act allow some renewable energy manufacturers and project developers to claim tax credits, which are attracting businesses from within the European Union and beyond. Meyer Burger says its plans include a solar panel factory in Arizona and a solar cell factory in Colorado. "We made a bold move in the absence of any industry policy support in Europe and shifted a solar cell expansion project from Germany to the U.S.," its chief executive Gunter Erfurt told Reuters in an interview. Similarly, battery company Freyr which operates mostly in Norway, has stopped work at a half-finished plant near the Arctic Circle and is focusing on plans for a plant in the U.S. state of Georgia after Washington announced the policy. Freyr said in February it had changed its registration to the U.S. from Luxembourg. "We did spend quite a bit of time trying to really make sure that we weren't committing a mistake," said Birger Steen, chief executive of Freyr: The company first hunted for support from Norwegian or European governments. "We got to the point where we concluded that that form of policy level response was not forthcoming." Asked to comment, Norway's ministry of trade and industry said that it had launched an industrial policy framework targeting energy transition technologies including solar and batteries, but did not directly address questions about additional funding for the companies in this story. CHARTER At Monday's meeting, the European Commission will launch a voluntary charter for governments and companies to sign in support of solar manufacturing plants. Industry association Solar Power Europe will coordinate company signatories. But the charter, which says that buyers of solar panels should include some domestic production in what they buy, is not enforceable, Solar Power Europe said. Michael Bloss, EU parliament member for Greens, launched a petition earlier this month calling for action at a European level to rescue panel manufacturers. Bloss says he is pushing for the European Commission to set up a 200 million euro ($213 million) fund to buy up unused European-made solar panels, but Europe has been unwilling to pursue that. The European Commission declined to comment. "We are -- in headlines and Sunday speeches -- very much in favour of creating our own solar industry, but then in action, nothing happens," Bloss told Reuters. "The charter will be more like a political declaration signed by member states, solar companies and the Commission, it's more long term, it has no immediate effect." In February, European policymakers adopted the Net-Zero Industry Act, a set of measures including a target to produce 40% of the region's clean tech needs by 2030. The previous month, the EU also approved almost $1 billion of German state aid for a Swedish battery producer, Northvolt, to help it set up a production plant in Germany after Northvolt threatened to take its business to the United States. It was the first time the bloc made use of an exceptional measure allowing member countries to step in with aid when there's a risk of investment leaving Europe. But aid for ongoing operations has not been forthcoming, amid political disagreement over how much public funds should go to struggling businesses. Decisions about supporting industries or firms like Meyer Burger are down to member states, a spokesperson for the European Commission told Reuters. Germany's economy and climate ministry believes aid to maintain an existing company like Meyer Burger would not be legal "if there is a lack of market prospects from the company's perspective," a spokesperson told Reuters. Potential customers -- renewable energy installers that depend heavily on cheap Chinese imports -- have also pushed back against any new subsidies for local panels, arguing such moves could hurt them by causing consumers to postpone orders as they wait for the subsidies to kick in. INTERTWINED More than a year's worth of low-price imported panels sit in European warehouses awaiting installation, according to consultancy Rystad Energy and solar panel makers. Reuters could not independently verify that estimate. That backlog could grow as Chinese capacity continues to expand, Rystad says: If all the plans Chinese firms have announced go ahead, China's industry will be able to make twice as many panels as are expected to be installed worldwide in 2024, said Marius Mordal Bakke, senior analyst at Rystad. Dresden-based Solarwatt is carrying six to nine months of stocks, up from around six weeks, its chief executive Detlef Neuhaus told Reuters in March. The company laid off around 10% of its employees last year and says its local panel production is running at roughly one-third of capacity. "This industry is so important for the future, we cannot allow that we are losing all our competence," said Neuhaus. Analysts say it's not clear what support could actually help, because firms like Meyer Burger produce a fraction of the volumes made by those in China, or planned in the U.S. "They are tiny, so they will always struggle with volume, not just to compete with Chinese producers but also with U.S. producers," said Eugen Perger, senior analyst at Research Partners AG. And local clean technology industries are so globally intertwined it's hard for European manufacturers to imagine a fully independent supply chain. Norway-based NorSun, which produces solar wafers – thin silicon film used in panels – said Chinese equipment is crucial to both its plant in Norway and a proposed facility in the U.S. The company has halted production at the Norway plant while it decides whether to upgrade it. Most of the equipment for either project would have to come from China. "There's essentially no other option," said Carsten Rohr, chief commercial officer at NorSun. DEJA VU Freiberg has been here before. Since the 1990s, companies setting up operations in the region have benefited from federal funding programmes to rebuild east Germany and help it close the gap with western Germany's prosperity. New industries sprang up, including in solar and semiconductors. But Freiberg took a big hit in the 2010s after China's solar industry boosted production and undercut competitors. In 2020, the German government removed a cap on subsidies for solar power installations which helped lift demand. In 2021, the EU's Green Deal signalled political support for future demand, and Russia's full invasion of Ukraine also helped solar deployment. Meyer Burger, which is headquartered in Gwatt, Switzerland, only set up production in Freiberg in 2021 as the industry started coming back to life. It refurbished a bankrupt solar company's plant that had stood unused for almost three years. For a while it became one of the town's largest employers, mayor Sven Krueger confirmed. "This is the second time the German solar industry is at risk. They failed once already," said apprentice Max Lange, 19, greeting colleagues with a silent nod as they cleaned idled machinery on the factory floor. "If it fails again, I doubt that I will be able to pursue a career in the European solar industry, because I don't think it will come back," he said, wondering aloud if he might instead find work in the U.S. solar industry. ($1 = 0.9397 euros) (This story has been refiled to correct a typo in the dateline and to say that the charter will be launched by the European Commission, not a trade group, in paragraph 17) 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/losing-hope-rescue-some-european-solar-firms-head-us-2024-04-15/

2024-04-15 05:38

MUMBAI, April 15 (Reuters) - The Indian rupee fell on Monday on worries over a broader conflict in the Middle East but avoided slipping to a record low as the central bank possibly curbed losses, traders said. The rupee was at 83.4350 to the U.S. dollar at 10:46 a.m. IST compared with 83.4125 in the previous session. The domestic currency has traded in a 2 paisa range so far, managing to hold above the 83.4550 record low, which was hit earlier this month. The Reserve Bank of India (RBI) likely sold dollars at open to limit the fallout of the developments in the Middle East, traders said. While the rupee does appear vulnerable, the "anticipation of RBI" is keeping the losses on the it limited, Amit Pabari, managing director at forex advisory firm CR Forex said. "The downside risk for the rupee is capped to approximately 83.50." Asian currencies struggled, risk appetite soured and the dollar index was near its best level in six months in the wake of Iran's attack on Israel. Brent crude was down 0.4% at $91.10 per barrel. From the rupee's perspective, oil prices are "quite alright" following the attack and "that is good", a fx trader at a bank said. "This will obviously change if Israel retaliates and you have the conflict widen out." Apart from the Middle East, Asian currencies will be eyeing U.S. Treasury yields which have been moving up amid changing Federal Reserve policy expectations. Following the third higher-than-expected U.S. inflation, investors now see only about two rate cuts this year. That is less than the three Fed policymakers projected at the last meeting and well shy of the 6-7 expected at the beginning of the year. 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/rupee-under-pressure-avoids-record-low-possible-cenbank-support-2024-04-15/