2024-03-26 05:56

SYDNEY, March 26 (Reuters) - Australia said on Tuesday it would relax proposed carbon emission rules for some popular pick-up trucks after the country's auto lobby raised concerns the changes could raise prices of cars and lead to fewer options for consumers. To boost the uptake of electric vehicles and lower emissions, Australia has proposed vehicle efficiency standards that will penalise automakers that import emissions-intensive models and reward those who bring in cleaner vehicles. But that led to a split within the Federal Chamber of Automotive Industries (FCAI), Australia's automotive body, with EV makers Tesla (TSLA.O) , opens new tab and Polestar early this month quitting in protest over the group's campaign against tougher emission standards. Energy Minister Chris Bowen said some popular pick-up trucks, known in Australia as "utes" or utility vehicles, and mostly used by builders and farmers, would now be classified as light commercial cars. That means those models would not have to meet tougher fuel economy rules. "Not everybody has got everything they have asked for. Some people wanted us to go harder and faster, some had concerns and wanted us to slow, but everybody here today has had a say," Bowen said during a press conference, flanked by Australian leaders of top car companies. The relaxation in rules comes after a similar move by the United States last week. The Biden administration slashed its target for U.S. electric vehicle adoption from 67% by 2032 to 35% after industry and autoworker backlash in Michigan, which could play a decisive role in the 2024 presidential elections. The FCAI had criticised the Australian government for trying to impose "extremely aggressive targets and severe penalties to be effective on very short notice". Australia is the only developed country apart from Russia to either not have or be developing fuel efficiency standards, and the Anthony Albanese-led centre-left government has been looking to implement tougher emission rules since coming to power in 2022. Though the emissions scheme will begin on Jan. 1, 2025, manufacturers will not face penalties until July. The government plans to introduce the legislation in parliament on Wednesday. Stay up to date with the latest news, trends and innovations that are driving the global automotive industry with the Reuters Auto File newsletter. Sign up here. https://www.reuters.com/business/autos-transportation/australia-softens-proposed-vehicle-emission-laws-some-pick-up-trucks-2024-03-26/

2024-03-26 05:45

March 26 (Reuters) - Oil prices settled lower on Tuesday as investors took a more mixed view toward the loss of Russian refinery capacity after recent Ukrainian attacks. Front-month Brent crude futures due to expire on Thursday settled down 50 cents at $86.25 a barrel while U.S. West Texas Intermediate (WTI) crude futures settled down 33 cents, or 0.4%, at $81.62. The more actively traded Brent futures for June settled down 33 cents at $85.96. Oil prices edged lower after Russia's government ordered companies to cut output in the second quarter to meet a 9 million barrels per day (bpd) target to comply with pledges to the OPEC+ consumer group. Russia, among the top three global oil producers and one of the largest exporters of oil products, is also contending with a spate of recent attacks on its oil refineries by Ukraine and has mounted its own attacks on Ukrainian energy infrastructure. Russian oil refining capacity shut down by the attacks has reached 14% of the country's total capacity, Reuters calculations showed on Tuesday. "Gasoline is seeing the support of reduced availability to the global market from curtailed Russian exports that has filtered through to the U.S.," said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois. FGE analysts said they expect a structural decline in Russian refinery runs and do not see them regaining 2023 levels even in the second half of this year. Trading was muted ahead of data that could provide insight into when central banks may begin interest rate cuts, which often boost demand for oil. The crucial February reading of the Personal Consumption Expenditures price index, the U.S. Federal Reserve's preferred inflation gauge, is due on Friday, when markets are closed for the Good Friday holiday. "The Fed promised these cuts but there's really no guarantee that it will be delivered right away, so the market is trading tentatively," said Frank Monkam, senior portfolio manager for Antimo LLC. Meanwhile, a slightly weaker U.S. dollar offered some support to oil prices. A weaker dollar typically makes oil cheaper for oil buyers holding other currencies. OPEC+ is unlikely to make any oil output policy changes until a full ministerial gathering in June, three OPEC+ sources told Reuters ahead of next week's gathering of ministers that is not expected to make any policy recommendations. Rising geopolitical premiums as the Israel-Gaza conflict continues were also set to sustain price levels. Iran-backed Houthi militants on Tuesday said they had mounted six attacks on ships in the Gulf of Aden and the Red Sea over the past 72 hours. U.S. crude oil and distillate inventories rose last week, while gasoline stockpiles fell, according to market sources citing American Petroleum Institute figures on Tuesday. Crude stocks rose by 9.3 million barrels in the week ended March 22, the sources said on condition of anonymity. Gasoline inventories fell by 4.4 million barrels, and distillate stocks rose by 531,000 barrels. Official government data will be published on Wednesday at 10:30 a.m. ET. 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-extend-upward-momentum-expectations-tighter-supply-2024-03-26/

2024-03-26 05:33

A look at the day ahead in European and global markets from Tom Westbrook As markets await key U.S. inflation figures this Good Friday, the focus is swinging to a sudden resurgence in yuan volatility. After months of flatlining, traders are beginning to suspect some kind of shift at the People's Bank of China as the yuan logs some of its sharpest dollar swings this year. Over a rocky few days, the currency has breached 7.2 per dollar, rebounded, and by Tuesday was again slipping toward the 7.2 level despite a signal of support from the central bank via a firm setting of the daily trading band. Analysts at National Australia Bank think it is more than coincidence that the dollar/yuan pair broke 7.2 in the same week Japan abandoned its negative interest rate policy only to see the yen fall. Against the yen, the yuan has made a three-decade high, which NAB analysts think may have motivated China's FX authorities to loosen their grip on the currency. "China sensitivity to the CNY/JPY exchange rate makes sense in the context of Beijing not wishing to gift Japan a competitive advantage in the many areas where China and Japan compete in global markets," said NAB analysts Ray Attrill and Rodrigo Catril. Unless, or until, dollar/yen stabilises, they may continue to let the yuan weaken leaving the Australian dollar under pressure too since it can often trade in sympathy with the yuan. Aussie dollar short positions jumped last week and the currency has struggled to escape a narrow range this year. The New Zealand dollar, also sensitive to the yuan, has fallen through support to four-month lows and looks to be under pressure. Gold, after touching a record high last week, was steady. The European calendar is fairly bare on Tuesday, while second-tier data is due in the U.S. with consumer confidence, manufacturing, services and durable goods figures expected. Good Friday is a holiday in most markets but is also when the U.S. publishes the Fed's favoured measure of inflation. Asian stocks slipped slightly with the yuan on Tuesday, while policymakers' warnings of possible intervention kept the yen from falling and it held at 151.38 per dollar . Key developments that could influence markets on Tuesday: - German consumer confidence - U.S. durable goods orders - U.S. January home prices - U.S. consumer confidence - Richmond Fed manufacturing activity; Dallas Fed services activity; Philadelphia Fed non-manufacturing activity Get a look at the day ahead in European and global markets with the Morning Bid Europe newsletter. Sign up here. https://www.reuters.com/markets/europe/global-markets-view-europe-2024-03-26/

2024-03-26 04:00

Coal imports keep growing after record 2023 buys Vietnam wants to reduce coal but faces risks of power shortages Foreign investors urge Hanoi to guarantee power supplies HANOI, March 26 (Reuters) - Vietnam's coal imports so far this year have nearly doubled from the same period of 2023, customs data shows, as the government strives to reassure foreign investors that factories will not face a repeat of last year's power shortages. The Southeast Asian nation, which hosts large manufacturing operations of multinational companies like South Korea's Samsung Electronics (005930.KS) , opens new tab, Taiwan's Foxconn (2354.TW) , opens new tab and Japan's Canon (7751.T) , opens new tab, is facing increasing pressure after it could not guarantee continuous power supplies during a prolonged heatwave last summer. Some factories were forced to temporarily suspend production. During a meeting with foreign investors last week, Prime Minister Pham Minh Chinh vowed there will be no more electricity shortages, state media reported. Two foreign officials in attendance, who were not authorised to speak publicly, said Chinh's commitments were reassuring but vague on measures to achieve that goal. The prime minister's office did not respond to requests for comment. Vietnam's limited capacity to use renewable energy and commitments to avoiding new power cuts makes it "imperative" to import more coal, said Phan Xuan Dung, a researcher on Vietnam at the Singapore-based ISEAS think tank. Coal imports, mostly from Australia and Indonesia, were up by roughly 88% as of March 15 compared to the same period last year, customs data shows. In the first two months of the year output also rose 3.3% from domestic mines, which usually cover about half of Vietnam's demand, according to official estimates. That comes after Vietnam's 61% increase in imports of the inexpensive fuel last year as coal-fired power plants resumed full production, in line with rising use by Indonesia, Malaysia and other regional peers. Coal imports are projected to rise further in the second half of the year, a Vietnam-based trader said, when steelmakers and other energy-intensive industries are expected to boost production. No breakdown on power generation is yet available for this year, but on Monday coal-fired plants accounted for about 60% of total output, according to Vietnam's power network operator. The combination of imports and domestic output shows coal supply exceeded 8 million metric tons per month in the usually quieter January-February period, nearly 9% higher than the monthly average over the last two years. KEEPING THE LIGHTS ON Vietnam, which is among the world's top 20 coal users by volume, wants to cut its reliance on the fuel but still expects peak use will not be reached this decade. As plans to boost renewable energy and gas face delays, the government wants to complete by June a transmission line to transfer electricity from the country's centre to its industrialised north. That is where heat-induced blackouts occurred last year and the El Nino weather pattern raises the risk of them this year. The government is also working on new rules to allow factories to directly purchase power from producers. Foreign investors, on which Vietnam's economy is highly reliant, are demanding quick action. Semiconductor companies are delaying investment decisions because of power supply risks, the South Korean chamber of commerce in Vietnam said in a paper published last week. In a separate paper last week, the American Chamber of Commerce asked the Vietnamese government to ease approval of energy projects to meet increasing power demand. Otherwise, attracting high-tech manufacturing and other key goals "will be difficult to reach," the U.S. business group 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/markets/commodities/vietnam-boosts-coal-imports-it-promises-investors-no-more-power-cuts-2024-03-26/

2024-03-26 02:37

MUMBAI, March 26 (Reuters) - The Indian rupee is likely to open mildly higher on Tuesday after slumping to a record low last week, with traders keeping a close eye on possible intervention from the Reserve Bank of India (RBI) to curb pressure on the local unit. Non-deliverable forwards indicate the rupee will open at around 83.39-40 to the U.S. dollar compared with its close of 83.4250 on Friday. Indian financial markets were shut on Monday for a local holiday. The rupee fell to a historical low of 83.43 in the closing minutes of the session on Friday and extended its decline in the offshore non-deliverable forwards (NDF) market. The USD/INR one-month NDF rose to a peak of 83.79 on Friday, suggesting expectations of the spot being around 83.73, but eventually moved lower on the back of likely central bank intervention in the market, three traders said. Asian currencies were mostly higher, with the offshore Chinese yuan recovering from its fall to its lowest level in four months. The dollar index was at 104.18 after falling 0.2% on Monday. "Market will test 83.50 again if the RBI is not strong-handed and if the intervention is more concentrated in the NDF or futures segment," a foreign exchange trader at a large private bank said. Elevated demand for cash dollars close to the end of India's financial year will also be key to watch, the trader added. Meanwhile, U.S. Federal Reserve officials said on Monday they still expect U.S. inflation to ease but also acknowledged an increased sense of caution surrounding its trajectory. U.S. personal consumption expenditure (PCE) inflation data due on Friday is likely to influence expectations for when the Fed is likely to begin easing rates. The rupee's recent decline will likely be short-lived with expectations of RBI intervention supporting the currency, Arnob Biswas, head of foreign exchange at SMC Global Securities said. KEY INDICATORS: ** One-month non-deliverable rupee forward at 83.43; onshore one-month forward premium at 6 paisa ** Dollar index at 104.15 ** Brent crude futures up 0.3% at $87 per barrel ** Ten-year U.S. note yield at 4.23% ** As per NSDL data, foreign investors sold a net $159.6mln worth of Indian shares on Mar. 21 ** NSDL data shows foreign investors bought a net $113.2mln worth of Indian bonds on Mar. 21 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-likely-recover-slightly-after-fall-record-low-all-eyes-rbi-2024-03-26/

2024-03-26 02:11

Reuters poll graphic on the Reserve Bank of India policy rate forecasts: BENGALURU, March 26 (Reuters) - The Reserve Bank of India (RBI) will keep interest rates unchanged until at least July, a bit longer than the U.S. central bank is expected to do so, on strong growth and still-elevated inflation, according to a firm majority of economists polled by Reuters. India's economy grew a stellar 8.4% in the fourth quarter of 2023, the fastest among major economies. Inflation, which is still close to the upper band of the central bank's 2%-6% target, does not hint at an imminent rate cut. All 56 economists in the March 15-22 Reuters poll expected the RBI to hold the repo rate at 6.50% (INREPO=ECI) , opens new tab at the conclusion of its April 3-5 meeting. They were, however, divided on when the first cut would come, with nine of 52 saying next quarter, 24 picking the third quarter, 17 saying the fourth quarter and the rest expecting it at a later time. Median forecasts put the rate at 6.25% by the end of September and 6.00% at the end of this year. "The combination of headline inflation remaining above 5% and the strong Q4 GDP figures will likely leave Monetary Policy Committee (MPC) members cautious about cutting rates too soon," said Alexandra Hermann, a lead economist at Oxford Economics. "While the year-long downward trend in core inflation will be seen as encouraging, MPC members will likely not deem this sufficient and rather err on the side of caution, waiting until the headline numbers are on a clearer downward path towards the 4% mid-point target." Inflation, at 5.09% in February, will decline to 4.00% in the third quarter before rising, poll medians showed. Price rises were expected to average 5.40% and 4.60%, respectively, in the current fiscal year and the next. Although growth was forecast to slow to 6.6% next fiscal year from 7.6% in the current fiscal year - a significant upgrade from the 7.0% predicted for this fiscal year just a month ago - it would still be the fastest among major economies. That would provide less incentive for the RBI to ease interest rates before its major peers, particularly the Federal Reserve. The U.S. central bank is currently expected to deliver its first cut in June, a separate Reuters poll showed, but the risks are growing for that to happen later in the year. "While the Fed has already indicated policy rates are likely to be reduced in the coming months, the growth and inflation dynamics in India suggests the RBI may just keep rates elevated for longer," wrote Aditi Gupta, an economist at Bank of Baroda. "In any case, the Fed is likely to cut interest rates much more than the RBI, which will ensure the interest rate differential settles somewhere close to the historical trend." (For other stories from the Reuters global economic poll: The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/world/india/indias-central-bank-likely-hold-rates-steady-until-least-july-2024-03-26/