2024-03-12 04:37

Ukraine launches mass drone attack Fire at NORSI refinery, drone downed near Kirishi NORSI is badly damaged - sources Russia says it repels cross-border attack by Ukrainian proxies MOSCOW, March 12 (Reuters) - Ukraine pounded targets in Russia on Tuesday with dozens of drones and rockets in an attack that inflicted serious damage on a major oil refinery and sought to pierce the land borders of the world's biggest nuclear power with armed proxies. Russia and Ukraine have both used drones to strike critical infrastructure, military installations and troop concentrations in their more than two-year war, with Kyiv hitting Russian refineries and energy facilities in recent months. Russia said Ukrainian proxies had sought to cross the Russian border in at least seven attacks that Russian forces had repelled. The Russian-speaking Ukrainian proxies said they had breached the border, a claim denied by Russia. In one of the biggest Ukrainian drone attacks on Russia to date, Moscow said it downed 25 Ukrainian drones over regions including Moscow, Leningrad, Belgorod, Kursk, Bryansk, Tula and Oryol. Waves of drone attacks continued through the day, the defence ministry said. Russian officials reported attacks on energy facilities, including a fire at Lukoil's (LKOH.MM) , opens new tab NORSI refinery and a drone destroyed on the outskirts of the town of Kirishi, home to Russia's second-largest oil refinery. Gleb Nikitin, governor of the Nizhny Novgorod region, said emergency services were working to put out a blaze at the NORSI refinery. "A fuel and energy complex facility was attacked by unmanned aerial vehicles," Nikitin said on Telegram. Industry sources told Reuters on condition of anonymity that the main crude distillation unit (AVT-6) at NORSI was damaged in the attack, which means that at least half of the refinery's production is halted. Lukoil declined to comment. NORSI refines about 15.8 million tonnes of Russian crude a year, or 5.8% of total refined crude, according to industry sources. It also refines about 4.9 million tonnes of gasoline, 11% of Russia's total, 6.4% of diesel fuel, 5.6% of fuel oil and 7.4% of the country's aviation fuel, according to industry sources. HITTING RUSSIAN ENERGY Striking Russian oil facilities is a problem for President Vladimir Putin as he faces off against the West over Ukraine, with domestic gasoline prices sensitive ahead of a March 15-17 presidential election. Russia imposed a six-month ban on gasoline exports on March 1. Along with Iran, Saudi Arabia and the U.S., Russia has vast energy reserves but has, since oil was discovered in the wilds of Western Siberia in the 1960s, often relied on Western technology to exploit and refine its crude. The Kremlin said the Russian military was doing everything necessary and that what it calls its military operation in Ukraine would continue. Russia says it has destroyed more than 15,000 Ukrainian-launched drones since the start of the war. BORDER ATTACK Russia said its forces prevented incursions from Ukraine in the western Belgorod and Kursk regions and inflicted heavy losses on the attackers, after Ukraine-based armed groups said they had launched cross-border raids. "Ukrainian terrorist formations, supported by tanks and armoured combat vehicles, attempted to invade the territory of the Russian Federation simultaneously," the Russian defence ministry said. At least two Ukraine-based armed groups purporting to be made up of Russians opposed to the Kremlin said they had launched an incursion across Russia's western border on Tuesday. Russia denied that the groups, which Moscow casts as puppets of the Ukrainian military and U.S. Central Intelligence Agency, had penetrated its territory, but said the border had come under attack in several places. The governor of Belgorod, Vyacheslav Gladkov, said one member of the region's territorial self-defence unit had been killed, although he gave no details on what had happened. The TASS news agency cited the Federal Security Service (FSB) as saying Russian forces had killed 100 people and destroyed multiple armoured vehicles when fighting off attempted incursions. Russia's defence ministry said Ukraine had fired eight RM-70 rockets and one Tochka-U missile at the Belgorod region. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/world/europe/ukraine-launches-drones-oryol-fuel-facility-other-regions-russia-says-2024-03-12/

2024-03-12 04:29

EIA raises U.S. oil output growth forecast for 2024 OPEC sticks to 2024, 2025 global demand forecast Ukraine drone strikes hit Lukoil's NORSI refinery API shows crude, fuel stocks fell last week NEW YORK, March 12 (Reuters) - Oil prices dipped on Tuesday, settling slightly lower after a higher-than-expected forecast for U.S. crude oil production and bearish economic data, but persistent geopolitical tensions limited declines. Brent futures for May delivery settled 29 cents lower at $81.92 a barrel. The April U.S. West Texas Intermediate (WTI) crude contract ended 37 cents lower at $77.56. U.S. consumer prices increased solidly in February, the U.S. Bureau of Labor Statistics said, pinning nagging inflation largely on higher costs for gasoline and shelter. "This does show a second month of an increase," said Tim Snyder, an economist at Matador Economics, noting the numbers were still within expectations. "Consensus in the markets says the Fed will not move to lower rates until June," he added. On Tuesday, OPEC stuck to its forecast for relatively strong growth in global oil demand in 2024 and 2025, and further raised its economic growth forecast for this year saying there was more room for improvement. On the supply side, U.S. Energy Information Administration (EIA) raised its 2024 outlook for domestic oil output growth by 260,000 barrels per day to 13.19 million barrels, versus a previously forecast rise of 170,000 bpd. The boosted forecast could be due to higher assumed oil prices, said UBS analyst Giovanni Staunovo. U.S. crude stocks fell 5.521 million barrels in the week ended Mar. 8, according to market sources citing American Petroleum Institute figures on Tuesday. Official U.S. government data is due on Wednesday. Last week, economic data from China, the world's biggest oil buyer, suggested softening demand even as crude imports increased in the first two months of the year from a year earlier. "Bearish demand sentiment and growing non-OPEC supply leave little room for the market to be bullish on oil prices at this time," said Serena Huang, head of APAC analysis at Vortexa. GEOPOLITICAL TENSIONS Hopes of a ceasefire in Israel's war against Hamas have faded, with negotiations deadlocked in Cairo while Israel and Lebanon's Hezbollah continue to exchange fire. Though the Gaza conflict has not led to significant oil supply disruptions, Yemen's Iran-aligned Houthis have been attacking ships in the Red Sea and Gulf of Aden since November in solidarity with Palestinians. Airstrikes attributed to a U.S.-British coalition hit port cities and small towns in western Yemen on Monday and the Houthis said on Tuesday that they had fired missiles at what they described as a U.S. ship in the Red Sea. Traders are becoming inured to such attacks, said John Evans at oil broker PVM. "The inventory of oil that might be affected is not lost, it is just delayed - and with the new shipping times being part of the new norm, 'delayed' will eventually not be applicable," he said. In Russia, the world's second-largest oil exporter, a Ukrainian attack on energy facilities set ablaze Lukoil's (LKOH.MM) , opens new tab NORSI refinery. 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/oil-rises-slightly-ahead-demand-estimates-2024-03-12/

2024-03-12 04:13

DETROIT, March 12 (Reuters) - Tesla's (TSLA.O) , opens new tab Autopilot and Full Self Driving technology and nine other assisted-driving systems marketed by major automakers received "poor" ratings from the U.S. Insurance Institute for Highway Safety in a new study released on Tuesday. The IIHS, a safety research arm of the insurance industry, also said there is no evidence that Autopilot or other assisted-driving systems have real-world safety benefits, based on crash data. "We are able to look at insurance claims data. We have been able to look at vehicles with and without these (systems) and determine there is no reduction in claims as a result of these more advanced systems," IIHS President David Harkey told Reuters. By comparison, there is evidence that automatic emergency braking systems cut rear-end collisions by 50% and cut incidents of a vehicle hitting a pedestrian by 30%, he said. Tesla and its chief executive, Elon Musk, have said that a Tesla operating with Autopilot engaged is about 10 times safer than the U.S. average and five times safer than a Tesla without the technology enabled. Federal regulators are investigating nearly 1,000 accidents in which Tesla's Autopilot was in use. A civil case scheduled to go to trial next week in California will be the latest test of Tesla's strategy of blaming crashes on drivers who fail to heed the EV maker's warnings to pay attention to the road when Autopilot or Full Self Driving technology are engaged. Tesla did not reply to an email seeking comment. The IIHS study rated 14 assisted-driving systems from nine automakers against standards it developed. The U.S. National Highway Traffic Safety Administration has no formal standards governing advanced-driver assistance systems, or ADAS in industry terminology. "There are no federal regulations, nor is there good consistent guidance," Harkey said. "That was our reason for putting these safeguards together." Of the systems IIHS tested, only one earned an acceptable rating: The Lexus Teammate with Advanced Drive, offered last year on a small number of Toyota Motor's (7203.T) , opens new tab luxury Lexus LS hybrid sedans. "Toyota continuously aims to increase vehicle safety," Toyota said in a statement. "As a part of that effort, Toyota, among other things, considers performance in third-party testing programs like NHTSA’s New Car Assessment Program and IIHS’s Top Safety Pick program.” GM's Super Cruise and Nissan's (7201.T) , opens new tab "ProPILOT Assist with Navi-link" offered on the 2023-2024 Ariya electric vehicle received "marginal" overall ratings. "We are evaluating the results from the first-ever Partial Automation Safeguards test and will continue to work with IIHS in all matters related to customer safety," Nissan said. GM said in a statement that Super Cruise "is meant to serve as an enhancement to the driving experience," not as a safety feature. Different assisted-driving systems from Tesla, Mercedes-Benz (MBGn.DE) , opens new tab, BMW (BMWG.DE) , opens new tab, Nissan, Ford (F.N) , opens new tab, GM, Hyundai's (005380.KS) , opens new tab Genesis brand and Geely's (GEELY.UL) Volvo Cars brand received "poor" overall ratings, although all achieved "good" scores on certain elements of the IIHS tests, the group said. "This new IIHS testing methodology does not assess the performance of the driver assistance systems, instead it focuses on safeguards to prevent misuse," Mercedes said in a statement. "We take the findings of the IIHS partial driving automation safeguard ratings very seriously." Automakers could boost safety ratings by adopting existing technology for functions such as driver-monitoring or attention warnings that achieved "good" scores, Harkey said. Tesla and other automakers are improving the capabilities of their systems, the IIHS said. Tesla revised its Autopilot software following a federal recall agreement, and IIHS will test the updated system, Harkey said. "We are certainly going to take in the results of these tests as our cars and these systems continue to evolve," BMW spokesman Jay Hanson said on Monday. BMW now offers in certain U.S. models a more sophisticated driving-assistance system than the one tested by the IIHS. The Genesis GV80 SUV that launches in the U.S. this spring will the first model in the Hyundai luxury brand with an in-cabin camera to monitor the driver's face and eyes while assisted driving is engaged. "This enhancement will also be rolling out to future Genesis products in the coming months and years," the company said. https://www.reuters.com/business/autos-transportation/tesla-rivals-get-low-marks-automated-driving-technology-2024-03-12/

2024-03-12 02:42

MUMBAI, March 12 (Reuters) - The Indian rupee is expected to open largely unchanged on Tuesday, as eye U.S. inflation data for cues on when the Federal Reserve will kick off interest rate cuts. Non-deliverable forwards indicate rupee will open mostly unchanged from its previous close of 82.7575. The local currency had climbed to 82.64 on Monday, the highest in more than six months, prompting the Reserve Bank of India to intervene, according to bankers. "It would be fair to say that the mini breakdown (on USD/INR) was not expected. The next question is to how much further will the RBI allow it to stretch," a forex trader at a bank said. "U.S. inflation data is always important. However, it is RBI that is way more important (from the USD/INR point of view)." The February U.S. inflation data, due later in the day, will hold cues on the stickiness of prices. The January inflation print was higher than expected, fuelling concerns that inflation was proving stickier. Following the report, expectations around how many times the U.S. Federal Reserve will cut rates this year had moderated. Ahead of the February data, investors are pricing in total rate cuts of 90 basis points in 2024. U.S. Treasury yields rose on Monday and the dollar index inched up. BofA Securities forecast that U.S. headline inflation accelerated to 0.4% while core decelerated to 0.3%. This would result in year-on-year headline inflation remaining at 3.1% and a two-tenth decline in core inflation to 3.7%, it said. "A report in line with our expectations would keep the Fed on track to begin cutting rates at its June meeting," it said. Meanwhile, India's retail inflation is forecast to have inched down to a four-month low of 5.02% in February, according to a Reuters poll. KEY INDICATORS: ** One-month non-deliverable rupee forward at 82.83; onshore one-month forward premium at 7.75 paisa ** Dollar index up at 102.81 ** Brent crude futures up 0.3% at $82.4 per barrel ** Ten-year U.S. note yield at 4.1% ** As per NSDL data, foreign investors bought a net $1,279.2 mln worth of Indian shares on March 10 ** NSDL data shows foreign investors bought a net $529.4 mln worth of Indian bonds on March 10 https://www.reuters.com/markets/currencies/rupees-upside-momentum-faces-us-inflation-rbi-test-2024-03-12/

2024-03-12 01:08

SYDNEY, March 12 (Reuters) - JPMorgan Chase (JPM.N) , opens new tab CEO Jamie Dimon on Tuesday urged the Federal Reserve to wait until after June before cutting interest rates, arguing the central bank needs to shore up its inflation-fighting credibility. "I think they have to be data-dependent. If I were them, I would wait," Dimon said at the Australian Financial Review business summit via a livestream from New York. "You can always cut it quickly and dramatically. Their credibility is a little bit at stake here. I would even wait past June and let it all sort it out." Markets see an 84% probability the Fed will lower rates in June and have priced in 90 basis points of cuts for the year. Dimon said the U.S. economy was doing so well it could almost be characterised as a boom, but cautioned against the wholesale embrace of the soft landing narrative by markets. He put the odds of a recession of some sort at about 65% and refused to rule out the possibility of stagflation. Dimon said the surge in debt and equity markets since late 2023 had some bubble-like characteristics and linked it in part to the legacy of the pandemic-era fiscal and monetary stimulus, which was "still in the system, you can't say that they're gone". Long a critic of bitcoin, Dimon said a lot of the practical uses for the cryptocurrency were illegal activity like sex trafficking, fraud and terrorism. "I don't know what the bitcoin itself is for, but I defend your right to smoke a cigarette, I'll defend your right to buy a bitcoin," he said. "I won't personally ever buy a bitcoin." Dimon also weighed in on artificial intelligence and said JPMorgan had two thousand people working on 400 use cases for the technology at the bank. At home he uses AI to summarise books he does not have time to read. POLITICS IS A WORRY As the U.S. gears up for a presidential election in eight months, Dimon said the campaign would be a "circus" and too close to call. He acknowledged fears that Trump's second term could be more radical than the first and said he hoped the presidential hopeful's foreign policy rhetoric would be more thoughtful. "The whole thing is going to be nervewracking," he said. "I hope Trump is a much more thoughtful, rational speaker when he talks about foreign policy and how he wants to handle that." Dimon has previously warned that geopolitical tensions, including the war in Ukraine and conflict in Gaza, could weigh on global growth, and reiterated that theme on Tuesday. 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/jpmorgans-dimon-urges-us-fed-wait-past-june-before-cutting-rates-2024-03-11/

2024-03-12 00:47

March 11 (Reuters) - New York Community Bancorp (NYCB.N) , opens new tab said on Monday it had closed the $1 billion capital infusion deal that was agreed last week with an investor group and plans to submit one-for-three reverse stock split of its common stock to shareholders. Joseph Otting, former Comptroller of the Currency in the Donald Trump administration, was named NYCB's chief executive last week as part of a $1 billion capital injection from a group of investors that included former U.S. Treasury Secretary Steven Mnuchin. The bank said on Monday it had added Otting, Mnuchin, Milton Berlinski and Allen Puwalski as the new directors of the board, while reducing the board strength to 10 members. Shares of NYCB rose 5.8% to $3.44 in extended trading on Monday. The lender said last week that it was seeing interest from non-bank bidders for some of its loans, and will outline a new business plan in April after the bank had slashed its dividend again and disclosed deposits fell 7%. A surprise quarterly loss and a 70% reduction of its dividend in January hammered NYCB's stock, which came under pressure again in late February after it said it had found "material weakness" in internal controls and revised its loss to 10 times higher than earlier due to a goodwill impairment charge. Investment firms Hudson Bay Capital, Reverence Capital Partners, Citadel Global Equities, some institutional investors and certain members of NYCB's management last week had agreed to participate in the equity investment. NYCB said it plans to raise the funds through stocks and warrants and investors will own about 39.6% of the company on a fully-diluted basis after the latest fund raising. Several Wall Street analysts have flagged concerns that the lender's turnaround will likely take a long time as profits remain under pressure from its efforts to boost reserves for potential bad loans in its commercial real estate portfolio. https://www.reuters.com/business/finance/nycb-closes-1-billion-capital-infusion-deal-2024-03-12/