2024-04-03 21:09
DAKAR, April 3 (Reuters) - Senegal will conduct an audit of the oil, gas and mining sectors, newly elected President Bassirou Diomaye Faye told the nation in a televised speech on Wednesday, while also reassuring investors they were welcome in the country. Faye defeated the ruling coalition's candidate in a March election by a landslide, reflecting high hopes for change in the country of around 18 million. The audit is one of the first policy moves announced since the 44-year-old former tax inspector's inauguration on Tuesday. "The exploitation of our natural resources, which according to the constitution belong to the people, will receive particular attention from my government," he said. "I will proceed with the disclosure of the effective ownership of extractive companies (and) with an audit of the mining, oil, and gas sector." He did provide further details, but sought also to reassure investors, who he said were "welcome in Senegal." "Investor rights will always be protected, as well as the interests of the state and the people," he said. Senegal's first offshore oil development is due to start production in mid-2024. The Sangomar oil and gas project operated by Woodside Energy (WDS.AX) , opens new tab is expected to produce about 100,000 barrels per day. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/world/africa/senegals-new-president-announces-oil-gas-mining-sector-audit-2024-04-03/
2024-04-03 20:49
CHICAGO, June 7 (Reuters) - The outbreak of bird flu in U.S. dairy cows has now been confirmed in Minnesota and Iowa, bringing to 11 the total number of affected states, which have been encouraged to ramp up testing efforts at the request of government officials. More than 80 dairy herds and three dairy workers have tested positive for the virus since late March. Other states that have reported infected herds include Colorado, Idaho, Kansas, Michigan, New Mexico, North Carolina, Ohio, South Dakota and Texas. Here's what you need to know. WHY IS BIRD FLU A CONCERN? Health officials say the risk to the general public remains low. But the spread of avian flu among dairy cattle reflects an expansion of the range of mammals that can be sickened by the virus that typically infects birds, and influenza experts said finding bird flu in humans was worrisome. Scientists are on alert for changes in the H5N1 virus strain that could signal it is adapting to spread easily among humans. The virus has caused serious or fatal infections among people in close contact with wild birds or poultry and has long been on the list of viruses with pandemic potential. Any expansion to a new mammal species is concerning. The infections in cattle are from the same subtype of bird flu that has been infecting wild birds and poultry flocks globally for more than two years, also killing several mammal species that likely contracted the virus from consuming sick or dead birds. IS THE H5N2 BIRD FLU CASE IN MEXICO RELATED? The World Health Organization this week announced the death of a person in Mexico with serious health issues who had been infected with H5N2 avian flu. It marked the first time an H5N2 bird flu virus has infected a human globally and the first H5 case reported in a person in Mexico. It is not clear how the person was infected. Mexican officials said the man died from other health conditions, while the WHO said the death was due to multiple factors. The H5N1 virus that is currently infecting U.S. dairy cattle is from a subtype known as clade 2.3.3.4b. Although bird flu primarily infects and kills birds, human infections can occur and cause serious or fatal infections. Recent human infections in other types of bird flu besides the H5N2 case in Mexico include a case involving a different H5N1 subtype in Australia and an H5N6 infection in May in China. HOW WIDESPREAD IS THE BIRD FLU OUTBREAK IN CATTLE? The full extent remains unknown, but it may be in more herds than documented. The U.S. Food and Drug Administration has said it detected fragments of the H5N1 virus in about 1 in 5 samples during a national survey of retail milk. U.S. health officials believe people cannot get sick from drinking pasteurized milk but warn not to drink raw unpasteurized milk. The virus can be present in cows that show no signs of infection. HOW IS H5N1 SPREADING IN THE U.S.? It remains unclear how the virus is spreading, but there is evidence of wild bird-to-cow, cow-to-cow, cow-to-poultry, and three cases of cow-to-human transmission. There is no evidence of human-to-human transmission. Because of the heavy viral load in milk and mammary glands, scientists suspect the virus is being spread to animals during the milking process. It is not yet known if the virus can spread to cows through respiratory droplets that infect the airway, as flu viruses typically spread in humans, but studies are underway. Scientists believe farm workers most likely have been infected through exposure to infected milk. Human symptoms have included conjunctivitis, or pink eye, and mild respiratory symptoms. IS THERE A BIRD FLU VACCINE FOR HUMANS? The U.S. maintains a stockpile of prepandemic vaccine candidates and bulk vaccine against an array of influenza strains. Last month, U.S. officials said they have decided to manufacture bulk vaccine closely matched to the H5N1 virus, which will result in 4.8 million doses of vaccine. Sign up here. https://www.reuters.com/world/us/what-know-about-bird-flu-dairy-cows-risk-humans-2024-04-03/
2024-04-03 20:39
MEXICO CITY, April 3 (Reuters) - The severe drought which has forced the Panama Canal, one of the world's busiest trade passages, to limit daily crossings could impact global supply chains during a period of high demand, S&P Global said on Wednesday. The canal has imposed several restrictions since 2023, though last month the Panama Canal Authority bumped up daily crossings to 27, from 24, as water levels rose at the man-made Gatun Lake which feeds into the canal. "Capacity pressures at the Panama Canal are starting to have an effect on supply chains," S&P Global said in an analyst report on transportation of cargo and raw materials. "Container ships have yet to feel the impact in light of their priority status, although the situation is changing." Container ships have priority to pass through the Panama Canal, but transit restrictions have hurt other categories, particularly bulk carriers. If rains return in May as expected, the canal authority plans to ramp daily slots back up to about 36 per day, the average during rainy season. The need to maintain water levels at the reservoirs feeding into the canal has prevented it from absorbing demand from shippers seeking alternative routes away from the Red Sea, where Houthi attackers have blocked the passage of ships in the Suez Canal, the world's busiest waterway. Make sense of the latest ESG trends affecting companies and governments with the Reuters Sustainable Switch newsletter. Sign up here. https://www.reuters.com/business/environment/panama-canal-drought-could-threaten-supply-chain-sp-says-2024-04-03/
2024-04-03 20:33
TSX ends up 0.2% at 22,112.46 Materials group adds 1.9% Gold climbs to new record high Energy rises 1.5%; oil settles at 5-month high April 3 (Reuters) - Canada's main stock index rose on Wednesday, including gains for resource and financial shares, as commodity prices climbed and U.S. economic data supported bets the Federal Reserve would begin lowering interest rates over the coming months. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) , opens new tab ended up 37.36 points, or 0.2%, at 22,112.46, staying in touch with the record closing high it posted on Monday at 22,185.25. "This is a classic TSX rally in that you've got the miners rallying, precious metals in particular, you've got energy rallying and you got the financials rallying," said Philip Petursson, chief investment strategist at IG Wealth Management. "This isn't a fluke. This is driven by fundamentals and these fundamentals can continue for a while yet." Combined, the energy, materials and financial sectors account for roughly 60% of the Toronto market's weighting. The materials sector, which includes metal miners and fertilizer companies, rose 1.9% as copper prices climbed and gold moved to a fresh record high. "Gold is finally responding to not only inflation but the expectation for lower real interest rates," Petursson said. Bond yields eased after data showed U.S. services industry growth eased further in March, suggesting inflation is slowing. Energy added 1.5% as the price of oil settled at a five-month high, rising 0.3% to $85.43 a barrel, while financials ended up 0.2%. Lightspeed Commerce (LSPD.TO) , opens new tab shares gained 5.5% after the payments company announced 280 job cuts, looking to turn profitable. Professional services firm WSP Global (WSP.TO) , opens new tab was a drag, falling 5.4%, after short-seller Spruce Point Capital Management shorted the stock. 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/tsx-set-open-lower-rate-cut-uncertainty-looms-gold-prices-fall-2024-04-03/
2024-04-03 19:49
April 3 (Reuters) - Meta Platforms-owned (META.O) , opens new tab WhatsApp was back up on Wednesday after an hours-long outage at the smartphone messaging app disrupted services for thousands of people globally. WhatsApp said in a post on the social media platform X that the issues had been resolved. At its peak, the outage impacted more than 24,000 WhatsApp users in the United States, while Instagram users also reported over 5,000 outages, Downdetector data showed. Around 1,000 people were still facing issues with Instagram in the United States, per Downdetector, which tracks outages by collating status reports from a number of sources including user-submitted errors on its platform. The WhatsApp outage had impacted thousands of users in India, the United Kingdom and Brazil, per Downdetector data. Meta did not immediately respond to a Reuters request for comment. Last month, hundreds of thousands of users of the social media company's Facebook and Instagram were impacted globally for more than two hours following an outage that was caused by a technical issue. Meta has about 3.19 billion daily active users across its family of apps, which also includes Threads. The Technology Roundup newsletter brings the latest news and trends straight to your inbox. Sign up here. https://www.reuters.com/technology/metas-whatsapp-down-thousands-downdetector-shows-2024-04-03/
2024-04-03 19:11
NEW YORK, April 3 (Reuters) - Rising Treasury yields could provide the latest test for a rally that has made U.S. stocks increasingly expensive while taking them to fresh record highs. Expectations that the Federal Reserve will cut interest rates this year helped the S&P 500 (.SPX) , opens new tab notch a 10% gain in the first quarter, even as Treasury yields have accelerated their advance in recent weeks. Valuations rose as well: the benchmark index is trading at just over 21 times forward earnings estimates, its richest since January 2022, according to LSEG Datastream. Now, strong economic data is whittling away at expectations for how much the central bank will cut rates this year. The 10-year yield, which moves inversely to bond prices, hit 4.4% on Tuesday, its highest level in more than four months. So far, a resilient economy, robust corporate earnings and excitement over artificial intelligence have helped stocks largely shrug off rising yields this year. Some investors worry, however, that elevated valuations could make equities more vulnerable if rates keep climbing. Besides raising the cost of capital for companies and households, higher yields can increase the appeal of "risk-free" Treasury bonds compared to equities. "The fact that (yields) are breaking above a previous ceiling here is giving pause," said Chuck Carlson, chief executive officer at Horizon Investment Services. "The trend of these rates is disconcerting because you have this continued series of higher highs here that is being perpetuated today." Rising yields have helped upend the stock market several times in recent years. Stocks sold off in September and October when the 10-year yield surged to a 16-year high of just above 5%, only to come roaring back when yields reversed. In 2022, the S&P 500 plunged 19% as the Fed rapidly raised rates to head off soaring inflation. On Tuesday, the S&P 500 fell 0.7% while the 10-year yield was last around 4.35%. One key reason investors have been more sanguine about rising yields this year is the Fed, which has signaled it intends to cut rates in 2024. But strong economic data has made investors doubt the central bank will be able to ease rates as much previously expected. Futures markets on Tuesday showed investors pricing in around 70 basis points in cuts this year, compared to more than 150 bps in January. That is less than the 75 bps the central bank projected for this year. At the same time, various measures suggest stock market valuations have become less attractive. The equity risk premium - which compares the S&P 500 earnings yield against the 10-year Treasury yield - turned negative in the first quarter for the first time since 2002, said Keith Lerner, co-chief investment officer at Truist Advisory Services. "Bonds offer some real competition," said Ed Clissold, chief U.S. market strategist at Ned Davis Research. "So if we were to see the 10-year Treasury yield spike back towards 5% like it did last fall, stocks would probably reflect that and equity valuations would need to come down." Some investors believe a pullback is overdue. The S&P 500 has not fallen significantly since October, though retreats of 5% or more historically occur three times a year on average, Bank of America Global Research data showed. "We have been looking for a 3-5% correction for months," said Paul Nolte, senior wealth advisor and market strategist for Murphy & Sylvest Wealth Management. "We may finally be at the doorstep." Stocks' reaction to rising yields could depend on whether investors continue to believe the underlying economy remains strong and inflation is continuing to cool. If yields are rising "because growth has been a lot stronger than expected, then investors will be OK with that," said Damian McIntyre, head of multi-asset solutions at Federated Hermes. "But if growth starts to slow and inflation is climbing then that will start to weigh on investors' minds." A test comes with Friday's U.S. jobs data, with a stronger-than-expected report a possible reason for yields to keep ascending. Earnings season begins later this month, with the S&P 500 expected to show earnings growth of about 10% this year, according to LSEG IBES. "Stocks can weather a lot if the earnings are there," said Carlson of Horizon Investment Services. "But if earnings don't continue to beat expectations and you've got rates now going to four-month highs, that is going to be a problem for the market." 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/us/rising-treasury-yields-pose-test-richly-valued-us-stocks-2024-04-03/
