2024-03-01 06:17

March 1 (Reuters) - Northam Platinum (NPHJ.J) , opens new tab said on Friday it had halted some capital projects due to the current slump in metal prices, which saw the South African miner's half-year profit plunge by 93%. South African platinum group metal (PGM) producers, who account for about 70% of global output, are restructuring their operations to protect margins after metal prices fell sharply over the past year. Northam's bigger rivals Anglo American Platinum (AMSJ.J) , opens new tab, Impala Platinum (IMPJ.J) , opens new tab and Sibanye Stillwater (SSWJ.J) , opens new tab are restructuring unprofitable production by halting projects and cutting jobs. "Given the current market conditions, Northam has trimmed its capital schedule in the interest of capital preservation," Northam said in a statement. Prices of PGMs - mostly used by automakers to curb toxic emissions - have fallen, with producers citing weaker economic growth in China and destocking by manufacturers who built up stocks during Russia's invasion of Ukraine. The price of palladium, which makes up nearly a third of Northam's metal output, fell by 37% last year after surging to more than $3,400 an ounce following Moscow's invasion. Rhodium, which soared to almost $30,000 an ounce in 2021, is trading around $4,000 an ounce. Northam said it has deferred "certain workstreams" at its Zondereinde operations, while some development work at Booysendal and Eland mines has been temporarily halted. Its headline earnings per share (HEPS) - the profit measure commonly used in South Africa - came in at 1.21 rand in the six-month period ended Dec. 31, down from 16.09 rand in the year-ago period. The company declared an interim dividend of 1 rand per share. https://www.reuters.com/markets/commodities/safricas-northam-pauses-capital-projects-amid-platinum-price-rout-2024-03-01/

2024-03-01 06:16

KUALA LUMPUR, March 1 (Reuters) - Energy companies are ramping up exploration activities in Southeast Asia to boost natural gas output and meet long-term demand growth, drawn by recent discoveries and improved investment policies, company executives and analysts said. Malaysia and Indonesia have recently seen successful upstream discoveries, including a major discovery by Mubadala Energy in the South Andaman Block, following years of underinvestment in the sector since the 2015 oil price crash. As economic and population growth will spur continued gas demand growth in the region, which is expected to peak before 2040, "there is an important window of opportunity for investments in gas and LNG (liquefied natural gas)," said Stefano Raciti, Mubadala Energy's chief operating officer at an industry conference in Kuala Lumpur this week. "In Southeast Asia, we believe this means continuing investing in exploration and expanding in gas production," he added. Mubadala is working on expanding output at its Pegaga gas field in Malaysia where two energy majors will be involved for the first time through recent acquisitions. France's TotalEnergies (TTEF.PA) , opens new tab announced last month it bought a 50% stake in Malaysian-headquartered SapuraOMV and Chevron (CVX.N) , opens new tab is acquiring Hess which has assets in Malaysia. Separately, Indonesia's Pertamina and Malaysia's Petronas acquired Shell's 35% stake in the Inpex-operated Masela natural gas block. In January, Malaysian state energy firm Petronas awarded production sharing contracts for six exploration blocks under a 2023 bidding round, and launched a fresh bid round this year for the exploration of ten blocks and clusters to potential investors. Indonesia also plans to offer more oil and gas blocks in North Sumatra basin this year following a major discovery by Mubadala Energy in South Andaman Block and is reviewing its fiscal regime to attract investments for unconventional resources. "In the last two to three years, Indonesia and Malaysia have witnessed a good size of discoveries, which added on to the momentum overall. That pushes for more interest in exploration," said Rystad Energy analyst Prateek Pandey. Malaysia will likely drill around 30 exploration wells this year and 35 wells in 2025, up from 8 in 2021, he said, while Indonesia will see around 40 wells this year, versus 20 wells during the COVID pandemic. While the number of exploration wells in Indonesia will slightly decrease in the second half of the decade, Malaysia's will be consistent through to 2028 due to successful bidding rounds seen in the last three to four years, added Pandey. Increased flexibility in production sharing contracts and better fiscal terms have also attracted more investments into the region. Indonesia said in September it had made improvements in its oil and gas terms allowing contractors to have equity shares of over 50% in some new blocks. "As an investor coming from outside of the country, we need to have certainty in terms of investment policies and regulation in upstream activities. And we see that happening for the last five years," said Yuzaini Yusoff, Indonesia country head for Malaysia's national upstream company Petronas Carigali. "For upstream, we are focusing on expansion in exploration... Eastern Indonesia is where a lot of unexplored basins are situated at." https://www.reuters.com/business/energy/energy-firms-boost-gas-exploration-southeast-asia-meet-growing-demand-2024-03-01/

2024-03-01 06:15

S&P 500, Nasdaq hit fresh records, Treasury yields fall US manufacturing slumps further in February NEW YORK, March 1 (Reuters) - A global equity index scaled a record high while Treasury yields fell sharply on Friday after weak U.S. economic data and comments from Federal Reserve officials bolstered expectations for interest rate cuts later this year. The Institute for Supply Management (ISM) said its manufacturing PMI fell to 47.8 last month from 49.1 in January, the 16th straight month that the PMI remained below 50. This indicates contraction in manufacturing. The University of Michigan surveys of consumers showed all three measures for sentiment, current conditions and consumer expectations falling more than expected. Also on Friday, Fed Governor Chris Waller kindled hopes for lower interest rates, saying decisions about the ultimate size of the Fed balance sheet have no bearing in its inflation fight rate policy. On Thursday, the U.S. personal consumption expenditures (PCE) report was in line with expectations and showed annual inflation growth the smallest in three years. "When you take all of it together, you're seeing the balance tilting a little bit more toward the likelihood of there being more rate cuts, which has supported equities," said Sinead Colton Grant, chief investment officer at BNY Mellon Wealth Management. She also said equities drew support from a stronger-than-expected earnings season and enthusiasm about artificial intelligence. Investors appeared to shrug off a note of caution from Richmond Federal Reserve President Thomas Barkin, who said U.S. price pressures still exist and it is too soon to predict when the Fed will cut rates. On Wall Street, the S&P 500 closed at a record high for the second day in a row, with a strong boost from the technology sector and falling Treasury yields adding to bullishness. The Dow Jones Industrial Average (.DJI) , opens new tab rose 90.99 points, or 0.23%, to 39,087.38, the S&P 500 (.SPX) , opens new tab gained 40.81 points, or 0.80%, to 5,137.08 and the Nasdaq Composite (.IXIC) , opens new tab gained 183.02 points, or 1.14%, to 16,274.94. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab rose 5.81 points, or 0.76%, to 767.09 and hit a record high. The STOXX 600 (.STOXX) , opens new tab index closed up 0.6% after Eurostat figures published showed inflation across the 20-nation euro zone eased to 2.6% in February from 2.8% a month earlier. Global factory surveys showed manufacturing output had continued to fall in both Europe and Asia. And in Asia, Japan's Nikkei index (.N225) , opens new tab jumped 1.9% to hit a fresh all-time high, extending a surge of 7.9% the previous month when it breached levels last seen in 1989. In U.S. Treasuries, yields fell sharply including two-year yields' biggest daily decline since the end of January after the manufacturing data and Waller's suggestion of the need for more shorter-dated Treasuries. The 2-year note yield, which typically moves in step with interest rate expectations, fell 11.1 basis points to 4.5354%, from 4.646% late on Thursday. The yield on benchmark U.S. 10-year notes fell 6.6 basis points to 4.186%, from 4.252% while the 30-year bond yield fell 4.7 basis points to 4.3285% from 4.375% late on Thursday. In currencies, the dollar fell against the euro on weaker-than-expected U.S. economic data but gained against the Japanese yen after Bank of Japan governor Kazuo Ueda said it was too soon to declare victory on inflation. The dollar index , which measures the greenback against a basket of major currencies, fell 0.2% at 103.91, with the euro up 0.28% at $1.0833. Against the Japanese yen , the dollar strengthened 0.09% to 150.12 yen. In cryptocurrencies, bitcoin rose 2.36% to $62,898.00 after hitting a more than two-year high of $63,933 on Wednesday. In commodities, oil prices settled higher and posted weekly gains as traders awaited an OPEC+ decision on supply agreements for the second quarter while they weighed U.S., European and Chinese economic data. U.S. crude settled up 2.2% at $79.97 a barrel and Brent finished at $83.55 per barrel, up 2% on the day. In metals, gold started the month on a positive note, with prices rising to a two-month high the muted economic data. Spot gold added 1.97% to $2,083.41 an ounce. https://www.reuters.com/markets/global-markets-wrapup-1-2024-03-01/

2024-03-01 06:03

Droughts impacting hydropower fuelled emissions rise Clean energy tech has helped limit the rise Energy emissions down in US and Europe, up in China LONDON, March 1 (Reuters) - Global energy-related emissions of carbon dioxide (CO2) hit a record high last year, driven partly by increased fossil fuel use in countries where droughts hampered hydropower production, International Energy Agency (IEA) said on Friday. Steep cuts in CO2 emissions, mainly from burning fossil fuels, will be needed in the coming years if targets to limit a global rise in temperatures and prevent runaway climate change are to be met, scientists have said. "Far from falling rapidly - as is required to meet the global climate goals set out in the Paris Agreement - CO2 emissions reached a new record high," the IEA said in a report. Global emissions from energy rose by 410 million tonnes, or 1.1%, in 2023 to 37.4 billion tonnes, the IEA analysis showed. A global expansion in clean technology such as wind, solar and electric vehicles helped to curb emissions growth, which was 1.3% in 2022. But a reopening of China’s economy, increased fossil fuel use in countries with low hydropower output and a recovery in the aviation sector led to an overall rise, the IEA said in its report. Moves to replace lost hydropower generation due to extreme droughts accounted for around 40% of the emissions rise, or 170 million tonnes of CO2, it said. "Without this effect, emissions from the global electricity sector would have fallen in 2023," the IEA said. Energy-related emissions in the United States fell by 4.1% with the bulk of the reduction coming from the electricity sector, according to the report. In the European Union emissions from energy fell by almost 9% last year driven by a surge in renewable power generation and a slump in both coal and gas power generation. In China, emissions from energy rose by 5.2%, with energy demand growing as the country recovered from COVID-19-related lockdowns, the report said. China, however, also contributed around 60% of global additions of solar, wind power and electric vehicles in 2023, the IEA said. Globally electric vehicles accounted for one-in-five new car sales in 2023, reaching 14 million and up 35% on the level of 2022. https://www.reuters.com/business/energy/global-energy-related-co2-emissions-hit-record-high-2023-iea-2024-03-01/

2024-03-01 05:57

MUMBAI, Feb 29 (Reuters) - (This Feb. 29 story has been corrected to say that wheat production is expected to rise 1.3%, not fall 1.8%, in paragraph 1, and to fix wheat production from 114 million tons to 110.6 million tons, in paragraph 3) India's rice production is set to fall for the first time in eight years in 2023/24 because of below average rainfall, while wheat production is expected rise 1.3% from a year ago, the government said in a statement on Thursday. Rice production in the world's largest exporter is being carefully watched after New Delhi banned exports of non-basmati white rice in July, sending global prices surging. Rice production is expected to fall to 123.8 million metric tons in the crop year to June, while wheat production could rise to 112 million tons from 110.6 million tons a year ago, the Ministry of Agriculture and Farmers Welfare said. Lower rice production raises the prospect that Prime Minister Narendra Modi's government will extend curbs on exports of the grain to keep a lid on food prices ahead of a general election. Prolonged export curbs could further inflate food prices given low inventories in other key exporting countries including Thailand, Vietnam, Pakistan and Myanmar. https://www.reuters.com/world/india/indias-wheat-rice-output-drop-202324-government-says-2024-02-29/

2024-03-01 05:46

Talks end without consensus on major reforms Negotiations were "intensive and difficult", WTO said E-commerce moratorium extended for two years ABU DHABI, March 1 (Reuters) - World Trade Organization (WTO) negotiators failed to break a deadlock on major reforms on Friday despite talks extending deep into overtime in Abu Dhabi, in what some delegates said was a triumph of national interest over collective responsibility. Talks ended early on Saturday after five days of negotiations which failed to see breakthroughs on agriculture, fisheries and other key topics. However, a moratorium on imposing tariffs on e-commerce data transmissions was extended by two years, in a relief to businesses. "On the big ticket items that are essential for the mandate that the WTO wants to sort out, the fisheries, the harmful subsidisation, that just did not happen, because there was not the spirit of give and take," a senior European official said. On the fifth day of the ministerial meeting, most ministers had already gone home, although India's trade minister Piyush Goyal and European Trade Commissioner Valdis Dombrovskis remained until the end. BLAME GAME Dombrovskis expressed disappointment over the lack of consensus on fisheries, agriculture and broader reforms, and singled out India for blame. "Agreements were within reach, supported by an overwhelming majority of members, but ultimately blocked by a handful of countries – sometimes just one," he said in a statement. Goyal, who was a holdout on these topics, was seen smiling and shaking hands outside a meeting room late on Friday as delegates gathered in small groups next to a coffee stand. India insisted on a long promised permanent fix on public holdings of agriculture stocks which some developed countries opposed. "We have not lost out on anything. I go back happy and satisfied," Goyal told reporters as talks started to wind down. Delegates had described the talks as intense and contentious at times, but WTO Director General Ngozi Okonjo-Iweala sought to put a positive spin on a difficult week, telling a closing session: "We've worked hard this week, we have achieved some important things and we have not managed to complete others." India, along with South Africa, had opposed extending a moratorium on digital trade tariffs - a move that has overwhelming support of most governments and from business - but later relented after an appeal from host United Arab Emirates. WTO ministerial meetings have failed in the past and this year's negotiations, held in the oil-rich Gulf state the United Arab Emirates, has highlighted fissures between some of the world's top economies. BRICS DISAGREEMENT U.S. President Joe Biden's trade chief, Katherine Tai, said in an interview with Reuters late on Thursday that if talks failed, fragmentation among the BRICS group would have contributed. India and China, core members of the BRICS group of nations, have disagreed on key issues including on investment. India's commerce minister joined the negotiations two days after they started and after his Chinese counterpart had left Abu Dhabi. Pacific island nations have also complained at the talks about feeling marginalized and overlooked by most major powers, arguing that proposals did not go far enough to protect fish stocks. But Fiji's delegate earned a standing ovation at the end of the closing ceremony after urging countries to support future negotiations on fisheries. U.S. support for global trade and multilateral groups like the WTO has been renewed under Biden. But negotiators were mindful that former President Donald Trump, who disrupted the multilateral system, could win a second term in the U.S. presidential election in November. John Denton, who heads the International Chamber of Commerce, warned that the weak outcomes from the meeting should "serve as a wake-up call on the need for a more nuanced and constructive debate on the role of trade in society – both locally and globally. No country stands to gain from a weakened multilateral trading system." Earlier in the week, even the formal acceptance of completed negotiations on improving investment was blocked at an organization where all 164 members must agree by consensus. A consensus on major deals would have elevated the UAE's status as a global interlocutor, as it seeks to place a bigger emphasis on multilateralism and dialogue, a turnaround from the assertive foreign policy it was pursuing a decade ago. https://www.reuters.com/business/wto-issues-new-draft-trade-deals-after-all-night-talks-some-issues-unresolved-2024-03-01/