2023-12-27 10:04

MOSCOW, Dec 27 (Reuters) - U.S. sanctions targeting Russia's massive Arctic LNG 2 project are unacceptable and undermine global energy security, the Russian foreign ministry's spokeswoman said on Wednesday. The project, located in the Gydan Peninsula in the Arctic, is a key element in Russia's efforts to boost its share of the global liquefied natural gas (LNG) market to a fifth by 2030-2035 from 8% now. Western countries have imposed wide-ranging sanctions against Russian firms and individuals following the Kremlin's decision to send tens of thousands of troops into Ukraine in Feb. 2022, seeking to cripple Moscow's military might. Last month, Washington announced sanctions against Arctic LNG 2. "We consider such actions unacceptable, especially in relation to such large international commercial projects as Arctic LNG 2, which affect the energy balance of many states," spokeswoman Maria Zakharova told a weekly briefing. "The situation around Arctic LNG 2 once again confirms the destructive role for global economic security played by Washington, which speaks of the need to maintain this security but in fact, by pursuing its own selfish interests, tries to oust competitors and destroy global energy security." Zakharova also said cooperation between Russia and China, whose companies are stakeholders in the liquefied natural gas project, would continue to strengthen, including in the energy sphere. Russia is the fourth-largest producer of sea-borne liquefied natural gas behind the United States, Qatar and Australia. The daily Kommersant reported on Monday that foreign shareholders had suspended participation in the Arctic LNG 2 project due to the sanctions, renouncing their responsibilities for financing and for offtake contracts for the new plant. China's state oil majors CNOOC Ltd (0883.HK) and China National Petroleum Corp (CNPC) each have a 10% stake in the project, which is controlled by Novatek (NVTK.MM), Russia's largest LNG producer and owner of a 60% stake in the project. France's TotalEnergies (TTEF.PA) and a consortium of Japan's Mitsui and Co (8031.T) and JOGMEC also have a 10% stake each. Sanctions also resulted in Novatek declaring force majeure over LNG supplies from the project, industry sources told Reuters last week. https://www.reuters.com/markets/commodities/russia-us-sanctions-against-arctic-lng-2-undermine-global-energy-security-2023-12-27/

2023-12-27 06:43

NEW YORK, Dec 27 (Reuters) - The dollar slipped to a five-month low against the euro and a basket of currencies on Wednesday on expectations the Federal Reserve could soon cut U.S. interest rates. But with many traders out for holidays volumes are likely to remain muted until the New Year, and price moves are exaggerated by low liquidity. The dollar index , which measures the U.S. currency against six others, fell 0.48% to 100.98, the lowest since July 27. The index is on course for a 2.45% drop in 2023 after two years of strong gains driven by the anticipation of interest rate hikes by the Fed followed by its actual rate increases to battle inflation. The Fed is now viewed as being dovish relative to other major central banks. Pricing for a rate cut in March increased after Fed Chairman Jerome Powell was unexpectedly dovish at the U.S. central bank's December meeting, when policymakers projected 75 basis points in easing in 2024. Other central banks including the European Central Bank (ECB) have maintained a higher for longer stance. The Bank of Japan, meanwhile, has indicated that it is closer to ending its negative rate policy even as it also maintains it is in no rush to make a change. "Japan is going to finally come off of their extreme low policy within the next couple of months at least and also the ECB is sounding a little more hawkish than the Fed's newfound dovishness," said Lou Brien, market strategist at DRW Trading in Chicago. Key to the U.S. outlook will be what prompts rate cuts. If inflation falls much faster than the Fed's benchmark rate it can tighten monetary conditions more than Fed policymakers intend. "If the Fed cuts rates because inflation has come so far down that they don't want policy to unintentionally tighten ... then that's probably a good scenario," said Brien. If they cut because of a weakening economy, however, "then the history is kind of harsh" for the economy and the stock market, he added. "The motivation behind the rate cuts is still unknown and is going to be the most important factor." The euro rose 0.54% to $1.1102, the highest since July 27. The single currency is on track to gain 3.61% this year. Sterling rose 0.56% to $1.2793, and earlier reached $1.2802, the highest since Aug. 10. The British currency is headed for a 5.79% return this year. The dollar fell 0.35% to 141.89 Japanese yen , but is headed for an 8.22% gain this year. The Bank of Japan said on Wednesday it would reduce the amount of bonds it buys in its regular operations in the January-March quarter. A summary of opinions at the Bank of Japan's Dec. 18-19 meeting also showed BOJ policymakers saw the need to maintain policy for now, with some calling for a deeper debate on a future exit from massive stimulus. The Australian and New Zealand dollars both touched more than five-month peaks earlier in the session. The Aussie was last up 0.21% at $0.6841, while the kiwi gained 0.10% at $0.6335. Bitcoin rose 1.60% to $43,191. ======================================================== Currency bid prices at 3:00PM (2000 GMT) https://www.reuters.com/markets/currencies/dollar-under-pressure-rate-cut-wagers-thin-holiday-market-2023-12-27/

2023-12-27 06:43

TOKYO, Dec 27 (Reuters) - Japan's nuclear power regulator on Wednesday lifted an operational ban imposed on Tokyo Electric Power's (9501.T) Kashiwazaki-Kariwa nuclear power plant two years ago, allowing it to work towards gaining local permission to restart. Tepco has been eager to bring the world's largest atomic power plant back online to slash operating costs, but a resumption still needs consent from the local governments of Niigata prefecture, Kashiwazaki city and Kariwa village, where it is located. When that might happen is unknown. With capacity of 8,212 megawatts (MW), the plant has been offline since 2012 after the Fukushima disaster a year earlier led to the shutdown of all nuclear power plants in Japan at the time. In 2021, the Nuclear Regulation Authority (NRA) barred Tepco from operating Kashiwazaki-Kariwa, its only operable atomic power station, due to safety breaches including the failure to protect nuclear materials and missteps that saw an unauthorised staff member accessing sensitive areas of the plant. Citing improvements in the safety management system, the NRA on Wednesday lifted a corrective action order that had prevented Tepco from transporting new uranium fuel to the plant or loading fuel rods into its reactors - effectively blocking a resumption. Following the decision, Tepco said it would continue its efforts to regain the trust of the local community and society at large, while Japan's chief cabinet secretary said the government would do its part to aid the process. "The government will seek the understanding and cooperation of Niigata prefecture and local communities, emphasising 'safety-first'," Yoshimasa Hayashi, the government's top spokesperson, said. Resources-poor Japan is eager to bring more of its nuclear power plants online to reduce its reliance on imported fossil fuels such as liquefied natural gas (LNG). The Institute of Energy Economics, Japan (IEEJ) forecast last week that Japan's LNG imports would decline to 58.5 million metric tons in the 2024/25 fiscal year from an estimated 64 million tons this year. The fall factors in the anticipated restarts of a few more nuclear reactors and an increase in renewable energy sources. Shares in Tepco had soared after the NRA indicated early this month that it would consider lifting the operational ban after conducting an on-site inspection and meeting with the company's president. https://www.reuters.com/business/energy/worlds-biggest-nuclear-plant-japan-resume-path-towards-restart-2023-12-27/

2023-12-27 06:20

World shares up 0.46% at highest since Oct 2022 10-year Treasury yield hits five-month low Euro touches more than four-month peaks vs dollar Shipping stocks fall in Europe NEW YORK/LONDON, Dec 27 (Reuters) - World stocks rallied to their highest level in more than a year on Wednesday, while the U.S. dollar hit a five-month low, as expectations mounted that key central banks such as the Federal Reserve will start to cut interest rates early next year. In line with expectations of lower interest rates, the benchmark 10-year Treasury yield fell to a five-month low, while the two-year Treasury yield tumbled to a low not seen in seven months. Investor hopes that monetary conditions might be loosening boosted the MSCI's gauge of stocks across the globe (.MIWD00000PUS) by 0.46% to a level not seen since October 2022. On Wall Street, the Dow Jones Industrial Average (.DJI) added 0.21%, while the S&P 500 (.SPX) and the Nasdaq Composite (.IXIC) were flat. European shares (.STOXX) edged up 0.21%, with trade subdued given public holidays across the region on Monday and Tuesday. Analysts said the main risk for markets was that rates might not fall as fast as expected. "If global equity markets have one Achilles' heel going into January 2024, it is the expectation that the Fed will be methodically and consistently cutting interest rates throughout the year," said Nicholas Colas, Co-founder of DataTrek Research. The benchmark 10-year Treasury yield fell to 3.793%, and the 2-year yield retreated to 4.2375%. Expectations of rate cuts also dragged on the U.S. dollar , which fell 0.51% against a basket of six major currencies to a level last seen on Jul. 27. The jovial mood in world equity markets and a sluggish dollar lifted the euro by 0.54% to $1.1102, more than a four-month peak. “If the Fed cuts rates because inflation has come so far down that they don’t want policy to unintentionally tighten ... then that’s probably a good scenario,” said Lou Brien, market strategist at DRW Trading in Chicago. If they cut because of a weakening economy, however, “then the history is kind of harsh” for the economy and the stock market. “The motivation behind the rate cuts is still unknown and is going to be the most important factor,” Brien said. Market pricing shows a more than 80% chance the Fed is likely to begin cutting rates next March, according to the CME FedWatch tool, with over 150 basis points of easing priced in for all of 2024 . Oil prices slipped as some major shippers returned to the Red Sea - an area disrupted after Yemen's Houthi militant group began targeting vessels earlier this month. U.S. crude fell 2.02% to $74.04 per barrel and Brent was at $79.6, down 1.81% on the day. Maersk (MAERSKb.CO) shares fell more than 4.5%, and other shipping stocks also declined, giving back part of this month's gains that were driven by expectations a Red Sea traffic halt could boost rates. In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) rose more than 1% to an over four-month high. China's November industrial profits posted double-digit gains as overall manufacturing improved, data showed, although soft demand continued to constrain business growth expectations, emboldening calls for more macro policy support. Japan's Nikkei (.N225) rallied more than 1%, and Hong Kong's Hang Seng Index (.HSI) rose 1.7% in its first trading day after the Christmas and Boxing Day holidays. Chinese blue chips (.CSI300) eked out a marginal gain of 0.35%. Spot gold added 0.5% to $2,077.39 an ounce , while Bitcoin jumped rose 2.08% to $43,393.00. https://www.reuters.com/markets/global-markets-wrapup-1-2023-12-27/

2023-12-27 06:19

BEIJING, Dec 27 (Reuters) - Chinese electric vehicle giant BYD (002594.SZ), said on Wednesday it has obtained a conditional testing license for level 3 (L3) autonomous driving on high-speed roads. BYD was granted the first such license in China in July, the company said in a statement on its official Weibo account. Earlier in December, BMW Group (BMWG.DE) said it had received a test license for L3 self-driving on high-speed roads in Shanghai, while Mercedes Benz (MBGn.DE) said it would carry out L3 tests on designated highways in Beijing. IM Motors, the EV brand of state-owned Chinese automaker SAIC Motor (600104.SS), has said it is also applying to China's industry ministry for product entry of L3 cars. https://www.reuters.com/business/autos-transportation/byd-has-obtained-conditional-testing-license-level-3-autonomous-driving-high-2023-12-27/

2023-12-27 05:54

JAKARTA, Dec 27 (Reuters) - Hundreds of workers in Indonesia's nickel industry staged a peaceful rally on Wednesday to demand better standards of work safety, three days after a fire killed 19 employees. Labour groups threatened to strike if their demands were not met in full. So far, operations have not been affected at the Morowali industrial park, its spokesperson, Dedy Kurniawan said. About 300 workers joined Wednesday's rally, according to Katsaing, the chairman of the workers' union, Serikat Pekerja Indonesia Sejahtera (SPIS). "Our main demand is for the companies to comply with the occupational health and safety law," he said, adding that the management had "responded well" to a number of requests. However, worker representatives would continue to press other demands and strike action was a possibility if their requests were not met, he added. The industrial park, sprawling over 3,000 hectares (7,400 acres) on the eastern island of Sulawesi, focuses on nickel processing, employing 70,000 workers in dozens of companies. Sunday's fire at a nickel smelter furnace owned by Indonesia Tsingshan Stainless Steel, a unit of China's Tsingshan Holding Group, killed 11 Indonesian and eight Chinese workers, according to local police. Dozens other were injured. That smelter's operations have been suspended while police investigate the cause of the fire, Dedy said, but others in the park are running normally. Indonesia's manpower ministry will strengthen work safety laws, deputy minister Afriansyah Noor pledged. Indonesia, the world's biggest nickel producer, has banned exports of unprocessed nickel ore as it moves to boost domestic smelting and processing, but the sector has suffered several fatal incidents in recent years. https://www.reuters.com/world/asia-pacific/hundreds-indonesian-nickel-workers-rally-press-safety-demand-2023-12-27/