2024-01-03 22:38

LATEST DEVELOPMENTS: Hamas chief Ismail Haniyeh says the U.S. should focus on ending aggression towards Palestinians. "We hope that Mr. Blinken learned lessons from the past three months and realized the extent of the mistakes the U.S. has made by blindly supporting the Zionist occupation." Three Palestinians died and seven were injured in Israeli shelling on a house in central Gaza's Deir Al-Balah, the Palestinian Red Crescent said France and Jordan air-drop aid to field hospital in Khan Younis CAIRO/GAZA/JERUSALEM, Jan 5 (Reuters) - U.S. Secretary of State Antony Blinken and Europe's senior diplomat Josep Borrell began a new diplomatic push on Friday to stop spillover from the Gaza war into Israeli-occupied West Bank, Lebanon and Red Sea shipping lanes. Their Middle East visits came three months since Hamas militants from Gaza attacked Israel, triggering an offensive that has devastated the enclave, uprooted 90% of its population, and killed 22,600 people, according to Palestinian officials. Israel, which says it has killed 8,000 militants since the deaths of 1,200 people in the Oct. 7 Hamas attack, has announced a more targeted approach under global pressure to limit civilian casualties. But Gazans said Israeli planes and tanks had intensified attacks overnight on densely populated Al-Maghazi, Al-Bureij and Al-Nusseirat in the centre of the coastal strip. Some 162 people were killed in the past 24 hours, Palestinian officials said earlier. In addition to these, Palestinian officials later said that in the south, where hundreds of thousands of Gazans have moved in response to Israeli warnings, at least 22 people were killed by Israeli strikes on Khan Younis. One Palestinian health official said these included at least 10 people killed and several wounded by an Israeli air strike on a house belonging to Al-Bayouk family. Four others were killed in an air strike on a street in Al-Nusseirat, Palestinian officials said, while another three died and seven were injured in Israeli shelling on a house in central Gaza's Deir Al-Balah, the Palestinian Red Crescent said. Separately, medics reported that two more people were killed and others injured in the same central Gaza town after what residents described as fresh Israeli air strikes after dark. "The Israeli government claims democracy and humanity, but is inhumane," Abdel Razek Abu Sinjar said as he cried over the shrouded bodies of his wife and children killed in a strike on his house in Rafah on the border with Egypt. In Jabalia in northern Gaza, people picked their way through ruined streets filled with sewage and garbage, video showed. Hunger and deadly diseases are spreading. WEST BANK DEATHS MOUNT TOO The military said it had struck more than 100 targets in Gaza in the past 24 hours, killing gunmen who tried to attack a tank in Al-Bureij and others in Khan Younis, where Hamas' military wing said it had killed some troops. The war in Hamas-run Gaza has stoked violence in the West Bank, which is governed by its rival Fatah and is another territory where Palestinian hopes for statehood have been dashed since the last U.S.-mediated talks on a solution to the decades-long conflict in 2014. The Palestinian health ministry said a 17-year-old was killed and four other Palestinians wounded by Israeli army gunfire in the West Bank town of Beit Rima. Israel's military said troops shot at Palestinians who threw petrol bombs. Some 300 Palestinians have died there since the war erupted, the United Nations says. Blinken is due to visit the West Bank during a week-long tour starting on Friday in Turkey, which has offered to mediate. He will also visit Israel, Jordan, Qatar, the United Arab Emirates, Saudi Arabia and Egypt. "It is in no one's interest, not Israel's, not the region's, not the world's, for this conflict to spread beyond Gaza," State Department spokesperson Matthew Miller said. Borrell, the EU foreign policy chief, was due in Lebanon. IRANIAN BACKING Hamas, which is sworn to Israel's destruction, is backed by Iran. Other Iranian-backed militants have hit U.S. forces in Iraq and Syria and struck Israel from Lebanon in what they call revenge for Israel's avowed attempt to eliminate the Palestinian Islamist movement. The U.S. offered up to $10 million for information on Hamas sponsors or anything leading to the disruption of the group's financial mechanisms. Hamas chief Ismail Haniyeh said the U.S. should focus on ending aggression towards Palestinians and occupation of their land. "We hope that Mr. Blinken learned lessons from the past three months and realized the extent of the mistakes the U.S. has made by blindly supporting the Zionist occupation and believing its lies, which resulted in unprecedented massacres and war crimes against our people in Gaza," he said in a speech. The leader of Lebanon's powerful Iran-backed Hezbollah movement, Hassan Nasrallah, said on Friday the militia had conducted around 670 military operations on the border with Israel since Oct. 8, destroying many Israeli military vehicles. The Iran-aligned Houthis who control much of Yemen have fired on commercial vessels in the Red Sea since Nov. 19, forcing them to take longer routes in a blow to global trade. Israel has listed 175 soldiers as killed in action since its offensive began. Defence Minister Yoav Gallant has said the next phase would include raids in the north to demolish tunnels and a focus in the south on rescuing some 132 Israeli hostages remaining. A 25th hostage had been declared dead, a government spokesperson said on Friday. The World Health Organization said hospitals and other medical infrastructure in Gaza have been attacked nearly 600 times since the conflict erupted. Some 613 people have died within facilities and more than 770 wounded, it said. France and Jordan air-dropped seven tonnes of aid for a field hospital in Khan Younis. https://www.reuters.com/world/middle-east/hezbollah-israel-appear-signal-no-desire-spread-gaza-war-2024-01-03/

2024-01-03 22:12

HOUSTON, Jan 3 (Reuters) - Shell PLC (SHEL.L) has joined BP PLC (BP.L) in its battle against Venture Global LNG, accusing the liquefied natural gas (LNG) producer of denying it and other customers access to supplies while exporting more than $18 billion worth of the superchilled gas, according to a filing with U.S. regulators. Venture Global's Calcasieu Pass export facility has been producing and selling LNG for more than 20 months while telling Shell, BP and others it cannot provide them with term-contract cargoes while the plant is undergoing a commissioning phase. The customers have complained that this lack of access has cost them billions of dollars in lost sales. Shell filed a letter on Tuesday to the Federal Energy Regulatory Commission (FERC) in support of BP. The letter called on the U.S. regulator to force Venture Global LNG to release plant commissioning data to determine why commercial operations are stalled. The two energy giants are among a group that includes Edison SpA (EDNn.MI), Polish state energy firm Orlen and Spain's Repsol (REP.MC) that have filed contract arbitration claims on the lack of LNG cargoes provided under their contracts. "Venture Global's unprecedented and inexplicable process for purported commissioning that has so far been shielded from public view fails to follow Commission regulations regarding requests for privileged treatment of documents," Shell said. The letter reflects both the weak legal position that the two energy giants hold, a Venture Global LNG spokesperson said, and their efforts to pull regulators in the U.S. and Europe in a contract dispute. "This unseemly behavior reflects BP and Shell’s increasing lack of confidence in their contractual positions, and their complete disrespect for the U.S. regulatory process," said spokesperson Shaylyn Hynes. Shell wants an order for blanket disclosure of privileged documents, or an acceptable level of unilateral redaction of documents, the FERC filing shows. Venture Global LNG has become a major U.S. exporter of the superchilled gas since it started processing at its Calcasieu Pass, Louisiana, plant early in 2022. It has sold more than 200 cargoes of the gas under its own accounts without supplying BP and other long-term contract customers. https://www.reuters.com/business/energy/shell-backs-bp-fight-over-venture-global-lng-exports-2024-01-03/

2024-01-03 21:55

Jan 3 (Reuters) - A look at the day ahead in Asian markets by Alden Bentley, Americas Breaking News Editor for Finance & Markets The early 2024 shake out continued on Wall Street, after having spilled over into Asian trade on Wednesday, and marks a potential headwind for Japanese shares when they reopen on Thursday. The Nikkei (.N225) rose 28% in 2023, biggest yearly gain in a decade, ending it less than 1.0% shy of a 33-year high set in November. Tokyo markets have been shut for a public holiday and will reopen Thursday. But other Asian stock markets extended a global sell-off on Wednesday, while their currencies mainly fell against the dollar. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was down almost 1.5% after a 1.0% drop on Tuesday in a sluggish start to 2024. The index rose 4.6% in 2023. Data wise, there is nothing big on the docket until Friday's U.S. payrolls number. Wednesday's U.S. release of the minutes from the December Federal Open Market Committee meeting barely moved the markets. It looks unlikely to have any spill over into Thursday's trade, confirming that policymakers were on the cusp of easing this year, and saw the battle against runaway inflation as all but won. "While acknowledging inflation pressures have diminished, they still have to move more carefully to ensure orchestrate the soft-landing that everyone has bought into," Charlie Ripley, Senior Investment Strategist for Allianz Investment Management in Minneapolis, said in a client note. CPI data next week will show whether they are on base. But for percolating market incentives, the mid-month start of U.S. Q4 earnings release period could help determine whether the S&P 500 takes a run at setting a record high it fell just short of marking last week. Fourth quarter S&P 500 earnings are forecast to rise 5.2%, which is lower than the 11% growth estimate from Oct. 1, according to LSEG data. For 2024 year-over-year earnings are expected to rise 11.1%. The S&P 500 was down 0.6% in late afternoon trade and the Nasdaq was off more than 1.0%, with big tech and chip stocks leading the way. The dollar rose to a two-week high against the yen and ended up about 0.9%. Versus the yuan, it rose to its highest price since Dec. 13. Here are key developments that could provide more direction to markets on Thursday: - US ADP National Employment (December) https://www.reuters.com/markets/asia/global-markets-view-asia-graphic-2024-01-03/

2024-01-03 21:39

TSX ends down 0.3% at 20,818.58 Materials sector falls 1.25% Energy adds 3.35%, oil settles 3.3% higher First Quantum Minerals jumps 11% Jan 3 (Reuters) - Canada's main stock index edged lower for a second straight day on Wednesday, including losses for metal mining shares, as a range of economic and geopolitical risks supported a more cautious approach by investors in the first week of 2024. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) ended down 53.56 points, or 0.3%, at 20,818.58. It was extending its pullback from a 19-month high, which it notched last Thursday at 21,015.91. "People are coming back from an overly enthusiastic fourth quarter and maybe they are reevaluating their positions and trying to take a look at the world as we see it," said Michael Sprung, president at Sprung Investment Management. Two major wars globally, political tensions and the build up of debt are some of the headwinds facing the economy, Sprung added. U.S. stock indexes were also down as minutes from the Federal Reserve's December meeting failed to shake off the funk hanging over markets. The consensus view is for interest rate cuts and a soft economic landing but that outcome only happens some of the time, Sprung said. The materials group, which includes precious and base metals miners and fertilizer companies, fell 1.25% as a stronger U.S. dollar pressured gold and copper prices. Consumer discretionary lost 1.8% and heavily-weighted financials ended 0.7% lower. Energy was a bright spot, rising 3.35%, as U.S. crude oil futures settled 3.3% higher at $72.70 a barrel. Suncor Energy (SU.TO) climbed 5.9% after the energy firm said it saw record upstream production in the fourth quarter. First Quantum Minerals Ltd (FM.TO) was also a standout. Its shares rose 11% after a report that Barrick Gold Corp (ABX.TO) was exploring a possible bid for the company. Barrick's shares were down 2.9%. https://www.reuters.com/markets/tsx-futures-decline-metal-prices-slip-2024-01-03/

2024-01-03 21:36

Jan 3 (Reuters) - U.S. bankruptcy filings surged by 18% in 2023 on the back of higher interest rates, tougher lending standards and the continued runoff of pandemic-era backstops, data published Wednesday showed, although insolvency case volumes remain well below the level seen before the outbreak of COVID-19. Total bankruptcy filings - encompassing commercial and personal insolvencies - rose to 445,186 last year from 378,390 in 2022, according to data from bankruptcy data provider Epiq AACER. Commercial Chapter 11 business reorganization filings shot up by 72% to 6,569 from 3,819 the year before, the report said. Consumer filings rose 18% to 419,55 from 356,911 in 2022. For the final month of the year, total filings dipped to 34,447 from 37,860 in November, though they were up 16% from a year earlier. Bankruptcy case counts are expected to keep climbing in 2024, though there is still some distance to go to top the 757,816 bankruptcies filed in 2019, the year before the pandemic struck. "As anticipated, we saw new filings in 2023 increase momentum over 2022 with a significant number of commercial filers leading the expected increase and normalization back to pre-pandemic bankruptcy volumes," said Michael Hunter, vice president of Epiq AACER. "We expect the increase in number of consumer and commercial filers seeking bankruptcy protection to continue in 2024 given the runoff of pandemic stimulus, increased cost of funds, higher interest rates, rising delinquency rates, and near historic levels of household debt." Household debt did, in fact, stand at a record high $17.3 trillion at the end of the third quarter, according to data from the New York Federal Reserve. Delinquency rates are also edging higher, that data showed, but they also remain below rates from just before the pandemic. Financial conditions for businesses and households have tightened significantly over the last two years thanks to the Fed's aggressive interest rate hikes to contain inflation. Rates on mortgage loans, for instance, in the second half of last year shot to their highest since the start of the century. That said, borrowing costs and overall finiancial conditions eased over the course of the fourth quarter of 2023 after the Fed signaled it was coming to the end of its rate-hike cycle, and last month Fed officials themselves indicated they expect to be cutting rates this year. https://www.reuters.com/markets/us/us-bankruptcies-surged-18-2023-seen-rising-again-2024-report-2024-01-03/

2024-01-03 21:25

WASHINGTON, Jan 3 (Reuters) - Federal Reserve officials in December launched an expansive debate about a coming turn in U.S. monetary policy, with fresh concerns voiced about how long the economy could hold up under current high interest rates and at least initial discussion about when to halt the rundown of its balance sheet, according to minutes of the Dec. 12-13 meeting. Fed Chair Jerome Powell had laid out the broad contours of the meeting at a press conference held at its conclusion, noting that the central bank was likely done raising interest rates and expected to begin reducing borrowing costs by the end of 2024. While the minutes did not provide direct clues about when rate cuts might commence, they reflected a growing sense that inflation is under control and growing concern about the risks that "overly restrictive" monetary policy may pose to the economy. The document caps a year that began with the Fed still uncertain about how much harm it might have to inflict on the economy to control inflation and Powell warning of "pain" to come, but ended with inflation falling faster than anticipated and policymakers becoming increasingly hopeful that they could tame inflation while skirting the recession even staff members thought was sure to come. Initial debate about when to stop the rundown in the Fed's asset holdings showed policymakers edging towards reversal of a separate policy that, with less impact but in similar fashion to rate hikes, has also been restricting economic activity as part of the Fed's battle against the worst breakout of inflation in 40 years. "Participants pointed to the decline in inflation seen during 2023, noting the recent shift down in six-month inflation readings in particular," the minutes said. DIMINISHING INFLATION RISKS The core personal consumption expenditures price index on a six-month basis through November has run just below the Fed's 2% target. For the first time since June 2022 policymakers did not use the phrase "unacceptably high" to describe inflation, according to the minutes, while laying out reasons why they felt inflation would continue to fall. There were still risks, with several participants saying they felt the Fed had gotten all the help it could expect from improved supply chains to lower inflation, with tight monetary policy still needed to dampen demand and new geopolitical risks possibly causing inflation progress to stall. But participants also considered the overall risk of renewed inflation "as having diminished," while "a few" Fed officials saw a different problem developing: That the Fed would soon confront a "tradeoff" between its dual goals of controlling inflation and maintaining high rates of employment, a sacrifice Powell has pledged to try to avoid. That specific concern has been conspicuously absent from Fed debates in recent months, with inflation falling while the unemployment rate, at 3.7%, remains at a level many economists consider near or even below full employment. The fact that it has now surfaced suggests a growing sense that the economy could still hit a breaking point despite the growing hope among some Fed officials that a "soft landing" from high inflation is close. "Several participants noted the risk that, if labor demand were to weaken substantially further, the labor market could transition quickly from a gradual easing to a more abrupt downshift in conditions," the minutes noted. New jobs data for December will be issued Friday. According to projections issued at the Fed's December meeting, all but two Fed officials see the benchmark policy rate lower by the end of 2024 than it is now, with a majority of policymakers seeing it trimmed by at least three quarters of a percentage point. The target rate has been held in a range of from 5.25% to 5.5% since July. U.S. stocks slightly pared losses following the release of the minutes but were still down for a second straight day, while the U.S. dollar (.DXY) added to gains against a basket of currencies. U.S. Treasury yields were little changed. Traders of interest rate futures largely stuck to bets that the central bank's Federal Open Market Committee would start to cut rates in March, with the policy rate seen ending the year in the 3.75%-4.00% range, 1.5 percentage points lower than where it is now. "There is nothing in these minutes to dissuade us that the Fed will start to cut interest rates from this March onwards," said Paul Ashworth, Chief North America economist at Capital Economics. NO START SIGNAL YET The minutes in fact shed little direct light on when rate cuts might commence. Participants noted "an unusually elevated degree of uncertainty" about the economic outlook, with further rate increases still possible. But "most" felt that monetary policy was having its intended impact on inflation and would continue to do so by dampening household and business spending and pulling inflation back to target. Coming policy decisions would be "careful and data-dependent," the minutes said. The Fed next meets on Jan. 30-31. https://www.reuters.com/markets/us/fed-minutes-may-elaborate-coming-rate-cut-debate-2024-01-03/