2024-03-10 19:08

Gaza aid remains docked in Cyprus port Efforts underway to build makeshift jetty in Gaza It's complicated, but we will find a way, says charity's founder LARNACA, Cyprus March 10 (Reuters) - A ship carrying tonnes of food for Gaza remained docked in a Cyprus port on Sunday as preparations were underway to launch a yet untested maritime aid route to the enclave, where the United Nations estimates a quarter of the population faces starvation. The Open Arms, a salvage vessel, plans to tow a barge with 200 tonnes of food, mostly funded by the UAE. The supplies were sourced by charity World Central Kitchen (WCK), which is working with Spanish non-governmental organisation Proactiva Open Arms. WCK said it has another 500 tonnes of supplies in Cyprus, which will be dispatched in future missions. However, the timing on the departure for the aid was unclear. Packing the cargo was completed late on Saturday, but one source said the departure was partly contingent on creating a makeshift jetty in Gaza to facilitate deliveries since the strip has no port infrastructure. WCK is now constructing that jetty out of rubble. "I hope @WCKitchen succeeds in delivering a new way to increase the arrival of food in Gaza.. And is (sic) complicated..with so many unknowns and challenges," WCK's founder Jose Andres, a Michelin-starred chef, said on social media platform X. "But we never follow a plan, we adapt! And the plan writes itself as we go. And we will find the way." The pilot project envisages taking aid directly to Gaza, which has been sealed off from the outside world since Israel began its offensive in response to an Oct. 7 attack on Israel by Hamas militants. This mission, if successful, would effectively signal the first easing of an Israeli naval blockade imposed on Gaza in 2007 after Hamas took control of the Palestinian enclave. With the humanitarian crisis in Gaza becoming increasingly desperate, international players are scrambling to find alternative routes to supply aid. The US Army has dispatched a logistics ship carrying equipment, days after U.S. President Joe Biden said the U.S. would build a temporary pier to facilitate aid deliveries. Cyprus said cargoes are to undergo security inspections in Cyprus by a team including Israel, eliminating the need for screenings at its offloading point to remove potential hold-ups in aid deliveries. https://www.reuters.com/world/gaza-aid-ship-waiting-sail-cyprus-charity-builds-jetty-source-says-2024-03-10/

2024-03-10 12:59

NEW YORK, March 8 (Reuters) - Investors fixated on earnings and monetary policy are starting to factor in another variable that could sway markets this year: the 2024 U.S. presidential election. In his State of the Union address on Thursday, U.S. President Joe Biden proposed raising corporate taxes, whereas his opponent, Republican candidate Donald Trump, signed a 2017 law that slashed taxes on companies and the wealthy. Biden also boasted of U.S. economic progress under his tenure. It is difficult to gauge how asset prices could be swayed by these proposals and whatever else the presidential candidates may put on the table in coming months. The winner is likely to face a narrowly divided Congress that would make it difficult to push through legislative changes. That has not stopped some strategists from assessing how the political outlook could coalesce with other factors that have been driving markets. These include excitement over the business potential of artificial intelligence and shifting expectations of how soon the Federal Reserve might ease monetary policy. The S&P 500 (.SPX) , opens new tab index is up about 7.4% year-to-date and stands near a record high. "You get a sense (investors) ... have a lot on their plates right now, and politics is starting to come into that," said Paul Christopher, head of global market strategy at Wells Fargo Investment Institute. "Even though everyone knows the candidates, it's going to be a pretty close race so it's very difficult to predict the outcome." Opinion polls show Biden, 81, and Trump, 77, closely matched. While the U.S. economy is performing better than most high-income countries, Americans overall give Trump better marks in polls for economic issues. Biden on Thursday proposed to increase to 21% a 15% corporate minimum tax on companies reporting over $1 billion in profit that he won as part of 2022 clean energy legislation. He also promised to renew his "billionaire tax" proposal, which would impose a 25% minimum tax on income for Americans with assets of more than $100 million. However, "it's going to be difficult for any tax policy proposal to pass by either side because it's going to come down to party lines," said Larry Tentarelli, chief technical strategist for Blue Chip Daily Trend Report. Regardless of the election outcome, fiscal policy will likely be among the first items that the next administration tackles, Wells Fargo analysts wrote. A Republican sweep would likely mean that the 2017 tax cuts would be extended at the cost of higher inflation, while a Democratic sweep would lead to higher taxes on higher-income households and corporations, the firm noted. ELECTION YEAR TRENDS The S&P 500 has notched an average gain of 15.5% in years that a president has sought re-election, CFRA data going back to the end of World War II showed. That compares to an overall average annual return of 12.8% in that period. At the same time, election years come with their share of volatility. Analysts at BofA Global Research noted earlier this month that, in previous election years, the Cboe Volatility Index (.VIX) , opens new tab has risen by an average of 25% from the second quarter to November. Volatility tends to fall after election day with uncertainty removed, the firm said. The bank recently increased its target on the S&P 500 to 5,400, from 5000. October futures on the Cboe Volatility Index (.VIX) , opens new tab, - which encompass options contracts that extend until the middle of the following month - were recently trading some 2.6 points higher than the September futures, suggesting investor wariness regarding election-related market swings. Historical trends may favor Biden as well. Since the emergence of Super Tuesday in 1976, year-to-date gains in the S&P 500 ahead of the primary have coincided with the president's political party winning the election 80% of the time, LPL Financial data showed. The firm noted, however, that the S&P 500 has lately been rising along with Trump's standing in national polls. "This economy is doing well - and we will see whether Biden gets credit for it," said Jeff Buchbinder, chief equity strategist for LPL Financial. EYES ON CPI The market also had to digest plenty of near-term economic data to gauge the Fed's monetary policy trajectory. U.S. job growth accelerated in February, Labor Department data showed Friday, but a rise in the unemployment rate and moderation in wage gains kept on the table an anticipated rate cut in June. Investors are also awaiting U.S. consumer price data on March 12 for further clarity on whether inflation has eased enough for policymakers to lower borrowing costs in coming months. "Continued normalization in wages coupled with a weak CPI print next week could increase the FOMC's confidence that inflation is on track to returning to target, potentially moving forward the prospects of rate cuts," wrote Jeff Schulze, head of economic and market strategy at ClearBridge Investments. https://www.reuters.com/markets/us/wall-st-week-ahead-battle-white-house-comes-into-sharper-focus-wall-street-2024-03-08/

2024-03-10 10:24

Aramco chief sees healthy global oil market throughout 2024 Oil giant may partner with MidOcean outside of Australia Discussions ongoing for Renault-Geely engines tie-up Looking at LNG opportunities in U.S. DUBAI, March 10 (Reuters) - Saudi Aramco (2223.SE) , opens new tab Chief Executive Amin Nasser said on Sunday the oil giant was looking at further opportunities to invest in China, where he said oil demand was robust and growing. State-owned Aramco has been ramping up its China presence in a string of deals in refining and petrochemicals, some of them with crude offtake agreements attached. "So far we are in the early part of 2024, demand is healthy and growing in China," Nasser said on a media call following the release of results that showed net profit falling 24.7% to $121.3 billion on lower oil prices. Nasser said the country's refineries were some of the most fully integrated and had the highest conversion rates and Aramco was currently looking at further opportunities for investment. Nasser expected the global oil market to remain healthy throughout 2024. "We expect it to be fairly robust, we are looking at growth of about 1.5 million barrels," Nasser said. Nasser put demand for 2024 at 104 million barrels a day as opposed to an average of 102.4 million barrels in 2023. The Saudi government in late January ordered Aramco to scrap its expansion plan to boost production capacity to 13 million barrels a day (mbpd), returning to the previous 12 mbpd target. Two projects that were part of the expansion plan - Safaniyah and Manifa - are on hold, while three others are ongoing. Those are Zuluf, Marjan and Berri, expected to add 600,000, 300,000 and 250,000 barrels a day of crude production. Nasser said maximum production capacity would be optimized to maintain it within the 12 million bpd target, despite the ongoing projects. "I will manage that by moderating our decline, and offsetting that decline with the addition that will be coming from Zuluf, Marjan and Berri. That should not impact the number of rigs that we have in the field." The capacity target decision had sent shares of U.S. oilfield services providers tumbling as higher international and offshore oil exploration and produciton, primarily in the Middle East and Africa, had largely helped oilfield firms ride out slowing drilling activity by U.S. shale firms. GAS, LNG AND LITHIUM Aramco aims to grow its gas production by 60% by 2030 from 2021 levels. Aramco may partner with MidOcean Energy, a company owned by U.S. investment firm EIG Partners, to invest in liquefied natural gas (LNG) projects outside of Australia, Nasser said, having agreed last year to take a strategic minority stake in MidOcean. "We are partnering with MidOcean in Australia and we might partner with them in other enclaves depending on the opportunities," he said. Nasser also said Aramco was interested in investing in LNG opportunities in the U.S. but said he could not reveal further details. "We are in discussion with a number of companies." The global LNG industry is booming and the U.S. is the world's largest exporter. Sources told Reuters last week Aramco is in talks to invest in phase 2 of Sempra Infrastructure's Port Arthur LNG project in Texas, which represents a proposed expansion to the already producing first phase. Discussions are also still ongoing for a tie-up with French carmaker Renault and China's Geely for a 15% to 20% stake in their joint-venture for combustion and hybrid engines, Nasser said. Nasser also confirmed Aramco was currently evaluating the concentration of lithium in its oilfield brine. Sources had told Reuters on Friday Aramco was at the early stages of work on lithium extraction, regarded as a critical mineral by many major economies because of its use in battery manufacture. "This is a work in progress," Nasser said. https://www.reuters.com/business/energy/aramco-chief-sees-healthy-chinese-demand-looking-more-investments-2024-03-10/

2024-03-10 07:05

Profit drops by nearly a quarter Base dividend up 4% year on year Capex seen at $48-58 bln in 2024 Share sale is govt decision - CFO DUBAI, March 10 (Reuters) - Saudi Arabia's state-owned oil giant Aramco (2222.SE) , opens new tab boosted its dividend despite net profit falling 24.7% to $121.3 billion in 2023 on lower oil prices and volumes, showing the state's continued reliance on oil revenue as it seeks to diversify. The profit, down from $161.1 billion in 2022, was still the company's second-highest on record, Aramco said on Sunday as it reported total dividends for the year of $97.8 billion, up 30%. Oil revenues made up 62% of total state revenues last year. The Saudi government, which directly holds about 82.2% of Aramco, relies heavily on the oil giant's generous payouts, which also include royalties and taxes. The world's top oil exporter is spending billions of dollars trying to diversify its economy and find alternative sources of wealth having relied on oil for decades. "Our balance sheet remains strong, even after our significant growth programme and dividend payouts," Chief Executive Amin Nasser said. Nasser expects global oil demand for 2024 at 104 million barrels a day, up from an average of 102.4 million barrels in 2023. The state's ambitious economic agenda, known as Vision 2030, is spearheaded by the sovereign Public Investment Fund, which owns 16% of Aramco, after a fresh transfer by the government of 8% to companies PIF owns last week. Aramco declared a base dividend, paid regardless of results, of $20.3 billion for the fourth quarter. It expects to pay out $43.1 billion in performance-linked dividends this year, including $10.8 billion to be paid out in the first quarter. The base dividend was increased 4% year on year, and the performance-linked dividend was about 9% higher. The company said capital investments were at $49.7 billion in 2023, up from $38.8 billion in 2022. It forecast capital investments between $48 billion and $58 billion this year, growing until the middle of the decade. That range is wide because for external investments, "there's an element of timing that we don't fully control," Chief Financial Officer Ziad Al-Murshed said on a media call. The Saudi government in late January ordered Aramco to scrap its expansion plan to boost production capacity to 13 million barrels a day (mbpd), returning to the previous 12 mbpd target. The capacity decision "is expected to reduce capital investment by approximately $40 billion between 2024 and 2028," Aramco said. Most of the savings are expected in the latter years, so how it will be spent will be decided as opportunities arise, Al-Murshed said. Priorities for using the extra cash include sustaining capex, the base dividend, growth capex, additional distributions and further deleveraging, he added. Free cash flow fell to $101.2 billion in 2023 from $148.5 billion in 2022. Upstream investments including gas will be almost 60% of capex in 2024-2026, including external investments, Chief Executive Amin Nasser said. Downstream will be around 30% and "new energies" around 10%. "As we go beyond that, over the next 10 years, upstream will be around 50%, downstream is around 35% and new energies around 15%," Nasser said. Investing in gas will help free up more oil for export, as well as produce more liquids associated with gas extraction, he said. Aramco's shares were up about 1.7% to 32.3 riyals a share, slightly above their 2019 IPO price of 32 riyals. Sources told Reuters last month that Saudi Arabia is poised to sell more shares of Aramco. "That's a question for the government," Al-Murshed said on whether more government-owned shares would be sold. ($1 = 3.7505 riyals) https://www.reuters.com/business/energy/saudi-aramco-boosts-dividend-despite-drop-2023-profit-2024-03-10/

2024-03-10 06:20

JAKARTA, March 10 (Reuters) - Days of torrential rain have brought floods and landslides in Indonesia's province of West Sumatra, forcing the evacuation of more than 70,000 people, while killing at least 19, with seven going missing, authorities said on Sunday. The havoc since last Thursday in the provincial capital of Padang and eight other areas has damaged nearly 700 homes, scores of bridges and schools and 113 hectares (280 acres) of farmland. Indonesia's rescue agency is hunting for those missing, officials said, with 150 rescuers drafted into the effort, hampered by blocked roads following the landslides. "Today's search involves 150 personnel from various disaster agencies," Abdul Malik, the chief of the provincial rescue team, said in a statement. Those evacuated gathered in the nearest mosques, said Abdul Muhari, the spokesperson of Indonesia's disaster agency BNPB, but no temporary shelters were set up. They received food, water and medicines, while others returned home as waters subsided. Most areas in Padang are still flooded, Abdul added, with roads blocked by a landslide extending 50 metres (164 ft) in the area of Padang Pariaman. With more rain expected in the next few days, the agency warned of further damage from floods and landslides. Indonesia's rainy season began in January with the BMKG meteorological agency forecasting a first-quarter peak, particularly on the islands of Java and Sumatra. https://www.reuters.com/world/asia-pacific/indonesia-floods-landslide-kill-19-with-seven-missing-2024-03-10/

2024-03-10 00:24

SYDNEY, March 10 (Reuters) - China will complete a review into years-long tariffs on Australian wine by the end of March and is also reviewing its restrictions on lobster imports, Australian Trade Minister Don Farrell said on Sunday. Farrell said he was hopeful China would lift the tariffs of up to 218% on Australian wine, first introduced in 2021, once the review finished and that good progress was also being made in relation to the unofficial restrictions on lobster imports. "That process [wine] is coming to an end now and by the end of March that process will be completed," he said on Sky News on Sunday. "The Chinese trade minister confirmed that to me the week before last." However, Farrell said Australia would not hesitate to resume a World Trade Organisation suit against the tariffs if China did not remove them after the review, which Beijing began last year. China has been steadily lifting trade barriers put in place from late 2020 on a range of commodities including barley, wine, coal and lobsters. The restrictions were part of an escalating spat over foreign investment and security that boiled over when Australia called for an inquiry into the origins of COVID-19. The wine tariffs and unofficial restrictions on lobster imports are among the few barriers left in place. Farrell said the Chinese trade minister had also told him that a review into the lobster restrictions was also underway. "As far as lobster is concerned ... I got an understanding from the Chinese authorities that they are reviewing the issue of our lobster coming into China," he said "Everything is heading in the right direction." https://www.reuters.com/world/asia-pacific/good-progress-chinese-wine-lobster-trade-barriers-says-australia-trade-minister-2024-03-10/