2024-03-14 09:02
STOCKHOLM, March 14 (Reuters) - Sweden's central bank said on Thursday the digitalisation of payments has brought issues with fraud and exclusion of some groups, and legislation is needed to ensure also cash can be used to pay. The Riksbank said in an annual report on the retail payments system that measures are needed to make payments safer and more accessible. "Public and private actors must work together to ensure that everyone in society can pay and contribute to the functioning of the payment system in the event of disruptions, in peacetime crisis situations and in states of heightened alert," it said. "We need legislation to ensure that cash can be used to pay. Banks must also ensure that more customers have access to payment accounts," it said. 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/swedish-cbank-says-digitalisation-payments-poses-risks-legislation-is-needed-2024-03-14/
2024-03-14 07:54
Shell scales back 2030 emissions target Scraps 2035 target Introduces target to cut emissions from oil product sales LONDON, March 14 (Reuters) - Shell (SHEL.L) , opens new tab weakened a 2030 carbon reduction target and scrapped a "perilous" 2035 objective, citing expectations for strong gas demand and uncertainty in the energy transition even as it affirmed a plan to cut emissions to net zero by 2050. Shell's retreat follows a similar move by rival BP (BP.L) , opens new tab last year as many governments around the world slowed down the roll out of climate policies and delayed targets amid soaring energy costs and supply concerns. Oil majors have also come under increased investor pressure to focus on the most profitable businesses after reporting bumper profits in recent years while returns from renewables slumped. The changes to Shell's targets are a central pillar in CEO Wael Sawan's strategy revamp to focus on higher-margin projects, steady oil output and growth in production of natural gas in order to boost returns. In an annual update on its energy transition strategy on Thursday, Shell said it will target a 15-20% reduction in net carbon intensity of its energy products by 2030 compared with 2016 intensity levels. It had previously aimed for a 20% cut. Measuring emissions from burning fossil fuels by intensity rather than in absolute terms means a company can technically increase its fossil fuel output and overall emissions while using offsets or adding renewable energy or biofuels to its product mix. Shell, the world's largest liquefied natural gas (LNG) trader, said that it believed gas and LNG will play a critical role in the energy transition by replacing more polluting carbon in power plants. At the same time, it expects its power sales, which include renewable power, to be lower than previously forecast. The company retired a previous target to reduce its carbon intensity by 45% by 2035. Sawan told Reuters that it was "perilous" for Shell to set 2035 emission reduction targets because "there is too much uncertainty at the moment in the energy transition trajector". "We are trying to focus our company, our organization, and our shareholders on a waypoint that's much clearer... which is 2030," Sawan said. Shell also introduced a new "ambition" to cut overall emissions from oil products such as gasoline and jet fuel sold to customers by 15-20% by 2030 compared with 2021. End-user emissions, referred to as Scope 3, account for about 95% of the company's greenhouse gas pollution. Shell also maintained its target to halve emissions from its own operations, known as Scope 1 and 2 emissions, by 2030, saying it had already achieved more than 60% of that target. 'BACKTRACK' Mark van Baal, founder of activist shareholder group Follow This which co-filed a climate resolution at Shell's upcoming annual general meeting, said that "with this backtrack, Shell bets on the failure of the Paris Climate Agreement which requires almost halving emissions this decade". Shell also faces legal challenges over its climate strategy and is appealing against a landmark Dutch court ruling that ordered it to cut its emissions faster. As part of the strategy, Shell has started company-wide staff reductions, including in its low-carbon solutions division, in a drive to save up to $3 billion. It has also sold its European power trading business, exited offshore wind and low-carbon projects, put U.S. solar assets on sale and placed its giant refining and petrochemical complex in Singapore under review. It has also announced plans to shut down a refinery in Germany and to exit Nigeria's troubled onshore oil operations. The company reported a net profit of $28 billion in 2023 on the back of strong liquefied natural gas and oil sales, which were still down 30% from the previous year's record earnings. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/sustainability/climate-energy/shell-loosens-2030-carbon-emissions-target-2024-03-14/
2024-03-14 07:53
MOSCOW, March 14 (Reuters) - The Russian-controlled management of the Zaporizhzhia nuclear power plant, the largest in Europe, said on Thursday that the Ukrainian army had shelled a critical infrastructure facility at the plant. An explosive device was dropped near a fence where diesel fuel tanks are located, the plant reported. "Such attacks are unacceptable," it said. It was not immediately clear when the attack had taken place. Reuters was unable to immediately verify battlefield reports from either side. International Atomic Energy Agency Director General Rafael Grossi has repeatedly warned of the danger of attacks on the plant. Russia and Ukraine, at war for more than two years, have blamed each other for past shelling that has downed power lines and endangered generators. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/world/europe/russia-controlled-zaporizhzhia-nuclear-plant-says-was-shelled-by-ukraine-2024-03-14/
2024-03-14 07:52
Chinese buyers cancel/postpone wheat for Feb-April shipments Australian wheat cancellations come after similar hit to U.S. Global price declines to 3-1/2 year low prompting cancellations SINGAPORE, March 14 (Reuters) - Chinese wheat importers have cancelled or postponed about one million metric tons of Australian wheat imports, trade sources with direct knowledge of the deals said, as growing world stockpiles drag down prices. The moves come after the U.S. government reported cancellation of more than 500,000 metric tons of U.S. wheat exports last week to China, the world's No. 1 buyer, with international prices trading close to three and a half year lows. "Chinese buyers have cancelled some deals for Australian wheat, and they are also moving the shipping time from the first quarter to the second quarter, third quarter," said one Singapore-based trader at an international trading company, which sells Australian wheat to Asia. Sources said the steep decline in prices is the most likely reason for China's cancellation of Australian and U.S. cargoes, with some citing oversupply in the country's domestic market following large imports. A second trader in Singapore said trading companies have vacated shipping slots across several Australian ports, which were booked for cargoes to be shipped to China. Both traders declined to be named because of the sensitivity of the matter. Benchmark Chicago wheat futures have dropped more than 14% in 2024 to their lowest since August 2020, thanks to the ample world supplies. The market was trading down 1.5% at 0708 GMT on Thursday. Russia, the No. 1 exporter, is flooding the global market with cheap wheat as it draws down inventories ahead of an expected bumper harvest. Refinitiv data shows benchmark Russian wheat export prices slipped below $200 a metric ton ($5.44 per bushel) this week for the first time since August 2020, marking the lowest early March price since 2017. Russia is projected to export a record 51 million metric tons of wheat in the crop year that ends on May 31, up from 47.5 million a year ago, the U.S. Department of Agriculture (USDA) says. One million metric tons of wheat would require about 15 Panamax-size vessels of 68,000 tons each to ship, and amounts to more than 4% of Australia's expected total wheat exports of 23 million metric tons in 2023-24. China, the biggest buyer of Australian wheat, could have booked these cargoes four to five months ago when prices were higher, said Andrew Whitelaw at agricultural consultants Episode 3 in Canberra. "Cancelling cargoes is a bearish indicator," Whitelaw said "Whether they are doing it to buy again cheaper or because there’s less demand, it is still a bearish view on the market." The second trader in Singapore said some of the Chinese importers who cancelled or postponed purchases have agreed to pay penalties in the form of carrying cost to Australian suppliers. A Dubai-based grain trader, who declined to be named because of the sensitivity of the matter, said one miller in the Middle East bought a cargo of Australian wheat for shipment in early April without having to wait. "It wouldn't have been possible before China's move to postpone shipments, as Australian shipping slots were fully taken up," the trader 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/chinese-buyers-cancel-or-postpone-australian-wheat-buys-amid-global-oversupply-2024-03-14/
2024-03-14 07:22
Company challenged by Red Sea crisis, growing fleet Plans to cut procurement costs, adjust services Net profit down 83% at 3.0 billion euros in 2023 Cuts dividend, earnings outlook for 2024 FRANKFURT, March 14 (Reuters) - German container shipper Hapag-Lloyd (HLAG.DE) , opens new tab on Thursday said global vessel oversupply and a crisis in the Red Sea will force it to cut expenses in 2024, including adapting sailings and ports, after it posted an 83% fall in annual net profit. "We expect the market environment to continue to be difficult given the large number of ship deliveries this year," said chief executive Rolf Habben Jansen, adding that attacks on shipping in the Red Sea were disrupting its service network. "We need to further reduce our per-unit costs in order to remain profitable and competitive, going forward," he said. The company, the world's fifth-biggest container liner with 266 ships, will save on the procurement side and adjust services, he added. In a call with reporters, Habben Jansen said this could include faster sailings, changes to departure and delivery ports, and operational efficiencies. A collaboration with competitor Maersk (MAERSKb.CO) , opens new tab, which kicks in in February 2025, would help, he said. Asked whether adjustments meant cuts to sailings, Habben Jansen said the Red Sea crisis had enforced route changes. "It can mean that we reduce services, it can mean that we bring additional services in," he said. "Our teams did quite well around the Red Sea crisis." Hapag-Lloyd in January introduced land corridors through Saudi Arabia to mitigate the impact on its business from Jebel Ali, Dammam and Juibail to its ocean shuttle service out of Jeddah. The company posted a net profit of 3.0 billion euros ($3.28 billion) for 2023, down from 17.0 billion a year earlier, and cut its dividend by to 9.25 euros per share from 63 euros. Hapag-Lloyd is among a number of commercial shippers that have been skipping the Suez Canal after Yemen-based Houthi militants began attacking ships, rerouting via the Cape of Good Hope, which adds two to three weeks to voyages. German shipowners' group VDR on Tuesday said the diversions cost operators $1 million per tour. Global fleet growth by perhaps between 7 and 10% this year would also add supply pressure, company data showed. Earnings before interest and taxes (EBIT) this year will likely be between minus 1.0 billion to 1.0 billion euros, after 2.5 billion euros in 2023, Hapag-Lloyd forecasts. Its shares in a small free float were down 1.9% at 131.8 euros at 1145 GMT. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/business/hapag-lloyd-posts-83-lower-net-profit-2023-cuts-dividend-by-85-2024-03-14/
2024-03-14 06:59
SYDNEY, March 14 (Reuters) - China's top diplomat, Foreign Minister Wang Yi, will visit Australia and New Zealand next week, officials from both countries said on Thursday. Australian Prime Minister Anthony Albanese welcomed the visit, which comes days after China hinted it was close to removing restrictions on Australian wine, first imposed during a diplomatic spat in 2020. "I look forward to meeting Wang Yi during his visit to Canberra next week," Albanese said during a televised media briefing. "It's a good thing that Wang Yi is visiting, it's a good thing to have dialogue." The last time a Chinese foreign minister visited Australia was in 2017. Australia's diplomatic relations with China first soured in 2018 when the previous conservative government banned Huawei from providing equipment during the rollout of its 5G network. Ties worsened further after Canberra called for an independent investigation into the origin of COVID-19. China responded by imposing tariffs on several Australian commodities from late 2020. It has been lifting most trade blocks since Albanese's Labor government came to power two years ago. Australia's top publicly listed winemaker Treasury Wine Estates (TWE.AX) , opens new tab on Tuesday said China's Ministry of Commerce has released an interim proposal to remove tariffs on Australian wine, raising hopes nearly three years of stiff duties would soon end. Australia Foreign Minister Penny Wong is expected to raise consular matters, trade impediments, human rights, conflict prevention and regional security during her talks with Wang Yi next Wednesday. Wang will also visit New Zealand, Foreign Affairs Minister Winston Peters said later on Thursday, calling the relationship one of New Zealand's "most important and complex." The ministers will also discuss regional and global issues, including the importance of peace and stability in the Indo-Pacific region. ($1 = 1.5103 Australian dollars) 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/chinese-foreign-minister-visit-australia-next-week-guardian-reports-2024-03-13/
