2024-02-19 11:03

Feb 19 (Reuters) - An atmospheric river pounded California with thunderstorms and hail on Monday but spared the state major damage as there were no tornadoes which had been forecast as a possibility. Packing gusty winds, the storms knocked out power for more than 11,000 customers, according to PowerOutage.us, flooded roads, knocked down trees and shut down Santa Barbara airport for the day, officials said. As of 5 p.m. (0100 GMT), the 24-hour rainfall totals topped out around 3 to 4 inches (7.6 to 10 cm) in areas below Mount Shasta, one of California's tallest peaks at 14,180 feet (4,322 m). The National Weather Service in Sacramento issued a tornado warning for parts of Plumas County and Butte County in the state's north, but as of Monday evening the worst those areas received was hail and heavy thunderstorms, meteorologist Jeffrey Wood said. More significant damage was still possible as heavy rains were expected to douse much of northern California into Tuesday and southern California into Wednesday. Los Angeles County could receive 3 to 5 inches of rain in the mountains and foothills, the weather service said. Even so, the effects appeared to be far less significant than that from another atmospheric river two weeks ago that dumped up to a year's worth of precipitation in some areas, knocked out power to nearly 1 million customers and killed nine people. After historic precipitation a year ago effectively ended the state's severe drought, California is again experiencing a wet year. U.S. President Joe Biden on Monday declared a major disaster over severe storms that flooded the San Diego area in January, freeing up federal assistance to supplement state and local recovery efforts. Those rains killed three people and damaged more than 800 homes, the office of California Governor Gavin Newsom said. https://www.reuters.com/world/us/california-braces-more-heavy-rain-possibly-tornadoes-2024-02-19/

2024-02-19 10:17

LONDON, Feb 19 (Reuters) - The pound edged slightly higher on Monday after falling last week, as investors waited for new impetus from survey data on Thursday. Sterling was last up 0.12% at $1.2615 after slipping 0.25% last week. U.S. markets are closed for the Presidents' Day holiday, with trading volumes likely to be low throughout the day. Meanwhile, the euro was 0.1% lower against the pound at 85.42 pence. The single currency fell to a six-month low against sterling of 84.98 pence last week after UK wage data beat expectations, boosting the pound. But it then rose again when the pound fell after UK inflation figures came in lower than expected. Chris Turner, global head of markets at ING, said currencies were likely to continue to be relatively quiet until central banks start cutting interest rates later in the year. "Volatility in FX markets derives from volatility in interest rate markets, and because policy expectations are now sort of flat for the time being, we're not getting that source of volatility." The survey-based purchasing managers' index data, released on Thursday, will give a sense of the health of the UK economy in February. Investors currently expect around 70 basis points of interest rate cuts from the Bank of England this year, down from around 110 at the start of February. They see a roughly 55% chance that the first BoE cut comes by June. BoE chief economist Huw Pill said late on Friday that progress on inflation had so far been quite modest. "I do think that we will have to wait several more months before we can be convinced that the squeezing out of the persistent component of inflation is there," Pill said at a panel discussion hosted by the United States' National Association for Business Economics. Last week, data showed UK inflation held steady at 4% in January, defying forecasts for a rise, although remaining well above the BoE's 2% target. https://www.reuters.com/markets/currencies/sterling-inches-higher-after-last-weeks-fall-2024-02-19/

2024-02-19 08:42

Singapore to impose green fuel levy on departing flights Move from 2026 will raise ticket prices for travellers Aviation industry growth faces environmental challenges-IATA SINGAPORE, Feb 19 (Reuters) - Singapore on Monday said travellers would need to bear the cost of the transition toward green jet fuel, announcing plans for a levy that would lift ticket prices on departing flights as the aviation industry searches for a viable funding model. Introduced by Singapore's transport minister at an industry summit on the eve of the Singapore Airshow, the city-state said it aimed for all departing flights to use 1% sustainable aviation fuel (SAF) from 2026 and planned to raise that to 3-5% by 2030, subject to global developments and the wider availability and adoption of SAF. "It will hurt our air hub and our economy, and raise the cost of travel for passengers if we are overly ambitious with our sustainability goals," Transport Minister Chee Hong Tat said of the need to give modest targets initially. Aviation produces about 2% of the world's emissions but is considered one of the hardest sectors to decarbonise. European regulators have to date been the most active in trying to boost the use of SAF, introducing rules that force airlines to meet minimum requirements for its use such as 2% in France by 2025 and 5% by 2030. Under the European model, the carrier pays for the SAF and decides whether to pass the cost onto passengers in the ticket price. Singapore's levy will vary based on factors such as the flight's distance and travel class. For example, in 2026 the price of an economy class ticket on a direct flight from Singapore to Bangkok, Tokyo and London by an estimated amount of around S$3 ($2.23), S$6 and S$16 respectively to pay for the SAF, said the Civil Aviation Authority of Singapore, which developed the plan in consultation with industry and other stakeholders. SAF, which can be made either through synthetic processes or from biological materials like used cooking oil or wood chips, currently accounts for 0.2% of the jet fuel market and costs up to five times more than conventional jet fuel. "A big challenge that we are facing that is contributing to the high costs is actually securing bio-derived feed," said Ong Shwu Hoon, Asia Pacific fuels vice president at ExxonMobil (XOM.N) , opens new tab Asia Pacific. HIGH COSTS Singapore's only current SAF producer Neste (NESTE.HE) , opens new tab has the capacity to produce up to 1 million metric tons of the fuel annually at its refinery in the country that started operating last year, a company representative said, more than 10 times the volume required for the target of 1% by 2026. Neste produced 251,000 tons of SAF globally in 2023, according to its most recent financial report. The aviation industry says SAF use needs to rise to 65% by 2050 as part of a plan to reach "net zero" emissions by then, though that will require an estimated $1.45 trillion to $3.2 trillion of capital spending. "There will be a cost associated with transitioning to net zero. And ultimately, that cost will have to be reflected in the ticket prices that we charge our customers, which will have a dampening effect on the level of growth," IATA Director General Willie Walsh said at the Singapore summit. IATA, which represents about 320 airlines, estimates the global airline industry will grow at about 3.3% a year over the next 20 years, significantly lower than between 2010 and 2019, because of environmental challenges and supply chain issues, Walsh said. He said there were risks that taxation to pay for aviation sustainability measures would not reduce the number of flights but it could price some people out of flying and lead to empty seats, which is not good for the environment. "It's got to be a conversation: economics and viability, and environment sustainability," Walsh said. Luis Felipe de Oliveira, director general of Airports Council International, said governments needed to invest in new SAF refineries to help bring down the cost. "The solution is not capacity restrictions, the solution is not taxation, the solution is finding ways that you can work together to increase production which then will be used by the airlines in the system," he said. Sustainability will be a key theme of events at Asia's largest aviation gathering, the Singapore Airshow, which opens on Tuesday. During the show, Airbus (AIR.PA) , opens new tab will fly its A350-1000 widebody aircraft with a 35% blend of SAF supplied by Shell Aviation from used cooking oil and tallow. Singapore Airlines (SIAL.SI) , opens new tab Chief Sustainability Officer Lee Wen Fen said while the industry waits for SAF production to ramp up, using efficient modern planes to replace older ones that use more fuel is the most effective option. ($1 = 1.3446 Singapore dollars) https://www.reuters.com/sustainability/singapore-green-jet-fuel-levy-travellers-ignites-funding-debate-2024-02-19/

2024-02-19 08:19

Headline inflation 3.3% vs forecast 3.1% Key ex-energy figure 4.4%, in line with expectations Analysts see first rate cut in mid-year STOCKHOLM, Feb 19 (Reuters) - Headline Swedish inflation picked up pace as expected in January, data showed on Monday, and if the increase proves temporary it is unlikely to derail the central bank's plans to begin cutting interest rates in mid-year. Consumer prices in Sweden, measured with a fixed interest rate, fell 0.3% in January from the previous month and were up 3.3% from the same month last year, the statistics office (SCB) said. Stripping out volatile energy prices, inflation was 4.4%. The numbers were broadly in line with expectations of the Riksbank and analysts. "We still see inflation falling in the coming months and becoming too low later this year," Nordea economist Torbjorn Isaksson said. "We stick to our forecast that the Riksbank will cut rates in May." Headline inflation had been expected to pick up due to base effects, mostly energy prices. The central bank targets 2% CPIF inflation. The pace of inflation has dropped sharply since climbing to over 10% at the end of 2022 and after two years of rapid policy tightening, the Riksbank said it could start to cut rates from the current 4.00% soon - possibly as early as next month, although May or June are seen as more likely. However, policy makers are likely to proceed cautiously. The Riksbank remains concerned the downward trend in inflation could reverse with geopolitical tensions, a weaker crown currency and corporate pricing plans all on its radar. The Swedish crown was slightly stronger against the euro after the data. Markets have been gradually pushing back expectations for the first cut and how quickly the Riksbank will move to ease policy. A full cut is not priced in by June and markets expect the policy rate to end the year around 3.35%. In November - the last time the Riksbank made a forecast for inflation - it saw the headline figure at 3.15% in January. Excluding volatile energy prices - the measure the Riksbank is looking most closely at - inflation was expected to be 4.5%. Analysts saw headline inflation at 3.1% and, excluding energy, at 4.4%. In December, the figures were 2.3% and 5.3% respectively. https://www.reuters.com/markets/europe/swedish-january-inflation-up-expected-rate-cut-set-mid-year-2024-02-19/

2024-02-19 07:28

DUBAI, Feb 19 (Reuters) - Yemen’s Houthis targeted the Rubymar cargo ship in the Gulf of Aden and it is now at risk of sinking, the group’s military spokesperson Yahya Sarea said in a statement on Monday. The ship is British and the crew are safe, he said, adding the Houthis had also shot down a U.S drone in Hodeidah. A Belize-flagged, UK-registered and Lebanese-operated open hatch general cargo ship came under attack in the Bab al-Mandab Strait off Yemen on Sunday, British maritime security firm Ambrey said. The UK Maritime Trade Operations agency reported the crew had abandoned a ship off Yemen after an explosion. https://www.reuters.com/world/middle-east/yemens-houthis-say-rubymar-cargo-ship-targeted-could-sink-2024-02-19/

2024-02-19 07:15

SHANGHAI/SINGAPORE, Feb 19 (Reuters) - China is widely expected to trim its benchmark mortgage reference rate at a monthly fixing on Tuesday, as banks' improving net interest margins give authorities some leeway to use monetary stimulus to shore up faltering economy growth. The loan prime rate (LPR) normally charged to banks' best clients is calculated each month after 20 designated commercial banks submit proposed rates to the People's Bank of China (PBOC). In a survey of 27 market watchers conducted this week, 25, or 92.6%, of all respondents expected a reduction to the five-year LPR on Tuesday. They projected a cut of five to 15 basis points. Meanwhile, seven, or 25.9%, of all the participants predicted a cut in the one-year tenor . Most new and outstanding loans in the world's second-largest economy are based on the one-year LPR, which stands at 3.45%. It was lowered twice by a total of 20 basis points in 2023. The five-year rate influences the pricing of mortgages and is 4.20% now. It was last trimmed in June 2023 by 10 basis points. The strong expectation of a reduction to the mortgage reference rate comes after the central bank-backed Financial News reported on Sunday that the benchmark LPR could fall in coming days, with five-year tenor more likely to be reduced. "Lowering five-year LPR will help stabilise confidence, promote investment and consumption, and also help support the stable and healthy development of the real estate market," the newspaper said on its official WeChat account. While a slowing economy has hastened the need for lower rates, such moves have been constrained by uncertainties around the timing of U.S. rate cuts and risks of rapid yuan declines and capital outflows. The LPR is loosely pegged to the medium-term policy rate, and the two sets of rates usually move in tandem. Market watchers said a recent reduction to banks' reserve requirement ratio (RRR) and major lenders' latest cuts to deposit rates should allow banks to cut the LPR. China's central bank left the MLF rate unchanged as expected on Sunday when rolling over maturing medium-term loans, with uncertainties around the timing of an easing by the Federal Reserve limiting Beijing's room to manoeuvre on monetary policy. The PBOC's decision to cut RRR and fully roll over maturing MLF loans "underscores the continued commitment to an expansionary monetary policy stance aimed at bolstering economic growth and stability," said Tommy Xie, head of Greater China research at OCBC Bank. "We see the chance of an imminent LPR cut this month to further support market sentiment." https://www.reuters.com/markets/rates-bonds/china-seen-cutting-mortgage-reference-rate-first-time-since-june-2024-02-19/