2023-12-06 11:50

DUBAI, Dec 6 (Reuters) - Britain's Maritime Trade Operations (UKMTO) agency received reports of an incident involving a suspected drone over the Red Sea west of the Yemeni port of Hodeidah on Wednesday and warned vessels transiting the area to exercise caution. British maritime security company Ambrey also said on Wednesday it was aware of a drone incident in the same area and that it was investigating. There were no further details about the reported incident, which follows a series of attacks in Middle Eastern waters since war broke out between Israel and the Palestinian militant group Hamas on Oct. 7. The U.S. military said on Sunday that three commercial vessels had come under attack in the Southern Red Sea. Yemen's Houthi group on Sunday claimed drone and missile attacks on two Israeli vessels in the area, saying in a broadcast that the attacks came in response to the demands of Yemenis and calls from Muslim countries to stand with the Palestinian people. The U.S. Navy's Fifth Fleet did not immediately respond to a request to confirm the suspected incident. https://www.reuters.com/world/uk-maritime-agency-received-reports-suspected-drone-incident-southern-red-sea-2023-12-06/

2023-12-06 11:48

WARSAW, Dec 6 (Reuters) - Poland's parliament will on Wednesday vote on an amended bill put forward by Donald Tusk's newly-formed coalition as it seeks to tackle an early challenge to its policies to introduce greener energy and replace coal. The liberal Civic Coalition (KO) grouping, which looks poised to take power after an election in October, last week laid out the details of a plan to make renewable power the main source of Polish electricity by the end of the decade. It prompted an angry response from outgoing Law and Justice (PiS) party, which has favoured coal that accounts for around 70% of Polish power, and stalled the development of wind generation. In its amended form, the bill no longer includes provision that would have allowed wind farms to be built at a minimum distance of 300 meters (984.25 ft) from housing. The revised bill also offers support to consumers by extending a freeze on energy prices until June 30, 2024. https://www.reuters.com/sustainability/climate-energy/polands-leaders-vote-energy-bill-early-test-green-shift-2023-12-06/

2023-12-06 11:45

Dec 6 (Reuters) - Exxon Mobil (XOM.N) on Wednesday forecast production of 3.8 million barrels of oil equivalent per day (boepd) in 2024, as the top U.S. oil producer bets on a lift from Permian basin and Guyana. The company has said it expected output to be flat until the end of this year, at 3.7 million boepd, due to its withdrawal from Russia. (This story has been corrected to change year to 2024, not 2027, in paragraph 1) https://www.reuters.com/markets/commodities/exxon-mobil-forecasts-higher-production-2024-2023-12-06/

2023-12-06 11:43

LONDON, Dec 6 (Reuters) - Trafigura looked into whether staff colluded with Indian businessman Prateek Gupta, whom it accuses of substituting nickel with low-value metals, but was satisfied by their denials, a court document shows. Geneva-based commodity trader Trafigura filed a lawsuit against Gupta in February, alleging seven companies that it said were controlled by him carried out a systematic fraud involving nickel cargoes. Gupta has said in his defence that Trafigura staff devised the scheme at the centre of the case. Hundreds of pages of new documents have been released in connection with a two-day London court hearing that started on Tuesday in which Gupta asked a judge to lift a freezing order on his personal and business assets. The documents include WhatsApp messages and emails that Gupta says show Trafigura staff, including head of nickel trading Sokratis Oikonomou, devised a scheme to trade alloys and scrap in a transit financing operation and pretend they were nickel. Many of the communications involved Indian-based trader Harshdeep Bhatia, who in December 2022 told Gupta in a WhatsApp message: "We all need to get out of it ASAP as consequences are beyond words". Reuters was unable to contact Oikonomou and Bhatia for comment, both of whom no longer work for Trafigura. "Certain WhatsApp exchanges between Mr Gupta and Mr Bhatia suggested a lack of the professional detachment which one might expect and Trafigura was therefore concerned about the possibility of collusion between them," a document submitted to the court by Trafigura said. "They (WhatsApp messages) provide no support at all for the proposition that Mr Oikonomou knew about the fraud. In relation to Mr Bhatia, they do not justify a level of suspicion beyond that which was expressly canvassed in the evidence," it added. "Both individuals have now been specifically asked about them and deny any such allegation." In a witness statement, Bhatia said he was surprised when he found out that a cargo inspection in November 2022 found low-value carbon steel instead of nickel. "I remember feeling complete shock and disbelief," he said in the document. "I had never expected that the containers would contain something other than high quality nickel." Oikonomou in his witness statement disparaged the idea he would participate in such a scheme. "I was insulted by the suggestion that I would sacrifice my integrity and jeopardise my career to devise and propose such a plan." Nathan Pillow, a lawyer representing Trafigura, told the London court it was laughable that the major commodity trading company would come up with the fraud. "It's an utterly preposterous idea that Trafigura would knowingly hand over half a billion dollars for nothing," he said. "We're in an Alice in Wonderland situation here." https://www.reuters.com/markets/commodities/trafigura-checked-traders-didnt-collude-gupta-fraud-case-document-2023-12-06/

2023-12-06 11:38

BRUSSELS, Dec 6 (Reuters) - G7 leaders are expected to announce on Wednesday a ban on Russian diamonds and measures to manage some 300 billion euros ($323.58 billion) in immobilised Russian central bank assets and the G7 oil price cap, sources familiar with the matter said. G7 leaders are having a virtual meeting later on Wednesday. One source specified that the G7 was expected to announce a direct ban as of Jan. 1 and then an indirect ban with a phase in period from March 1 until Sept. 1. During the phase-in period, diamond companies will be able to use a self-declaration system like one provided by the World Diamond Council, the source added. The system will use tracing and certification done through G7 countries and only apply to rough diamonds in an initial phase. Western countries initially looked at various proposals that covered rough and polished gems but countries could not agree on polished. On the oil side, western nations have admitted that the impact of their $60 price cap on Russian crude oil has waned one year in, and the countries have been looking at ways to strengthen implementation. The EU's latest proposed package of sanctions on Russia includes some measures to capture details on "ancillary costs" and slow the sale of old western ships to Russia's so-called "shadow fleet". Meanwhile, the United States has started to impose sanctions on those who violate the price cap. Last week, Washington imposed additional sanctions, targeting three entities and three oil tankers as Washington seeks to close loopholes in the mechanism designed to punish Moscow for its war in Ukraine. As for immobilised Russian assets, the European Commission is expected to propose next week a way to capture the windfall from the interest gained on the frozen assets. Coordination with the G7 is essential, however, as the assets are spread between various currencies though most is being held by Belgian clearing house Euroclear. ($1 = 0.9271 euros) https://www.reuters.com/markets/commodities/g7-ban-russian-diamonds-announce-measures-price-cap-assets-sources-2023-12-06/

2023-12-06 11:37

Dec 6 (Reuters) - The chief executives of the biggest U.S. banks are set to appear before the Senate Banking Committee on Wednesday, where they will probably push back on proposals for stricter capital rules. The Committee's Democratic chair Sherrod Brown has alleged that banks "reward corporations that raise prices on Americans." Congress convenes the CEOs as part of its annual oversight of Wall Street firms. Here are the bank CEOs scheduled to testify: JAMIE DIMON, CEO OF JPMORGAN CHASE (JPM.N) Dimon, the outspoken chief of the biggest U.S. bank, has chided regulators over the draft capital rules, saying they would curb lending and economic growth if implemented. Dimon, who assumed his current role in 2006, previously clashed with the Committee's member Senator Elizabeth Warren on overdraft fees. Warren also criticized banking watchdogs for allowing JPMorgan to get even bigger when it bought failed lender First Republic Bank in May. BRIAN MOYNIHAN, CEO OF BANK OF AMERICA (BAC.N) Moynihan, who became CEO in 2010, rebuilt the second-largest U.S. lender after its financial crisis-era acquisitions of Wall Street giant Merrill Lynch and mortgage lender Countrywide. More recently, he has joined the industry chorus against the tougher capital rules. The bank has raised its minimum hourly wage to $23, with a goal of eventually boosting it to $25 by 2025. Raising pay has been a centerpiece of the Biden administration's strategy. JANE FRASER, CEO OF CITIGROUP (C.N) Fraser, the first woman to lead a major Wall Street bank, took the helm in 2021. Her focus has been on streamlining the lender and refocusing on core markets. The CEO is carrying out its biggest reorganization in decades to cut bureaucracy and increase efficiency. She has warned that there is "no room for bystanders" as the bank looks to close the gap with its peers. CHARLIE SCHARF, CEO OF WELLS FARGO (WFC.N) Scharf has led Wells Fargo's cleanup efforts since he became CEO in 2019. He has been tasked with repairing the damage from a sales practice scandal that emerged in 2016. While its earnings have improved, the lender is still operating under an asset cap that prevents it from growing until regulators deem that it has fixed its problems. DAVID SOLOMON, CEO OF GOLDMAN SACHS (GS.N) Solomon is steering the storied investment bank back to its traditional strengths - trading and investment banking - in his fifth year as CEO. Goldman's consumer-banking flop lost billions and raised questions about Solomon's strategy and leadership, which he has sought to address. Its traders and dealmakers are among the best paid on Wall Street. The generous payouts have long been contentious with progressives, especially during times of the economic turmoil. JAMES GORMAN, CEO OF MORGAN STANLEY (MS.N) Gorman's testimony will likely be his last during a 14 year-stint as CEO of the investment banking powerhouse. He is set to hand over the reins to Ted Pick next month, but has said he'd "help fix up on the loose ends" of some regulatory matters including the Basel proposals and a probe into the bank's block-trading activities. ROBIN VINCE, CEO OF BANK OF NEW YORK MELLON (BK.N) Vince, a former Goldman Sachs veteran, took the helm at BNY Mellon last year. The bank oversees $45.7 trillion in assets. Earlier this month, BNY Mellon said it will increase its minimum wage next year to $22.50 an hour from $20 and expand mental health benefits for employees. RONALD O’HANLEY, CEO OF STATE STREET (STT.N) O'Hanley has steered State Street, one of the world's largest custodian banks, since 2019. He recently highlighted its focus on controlling costs. https://www.reuters.com/markets/us/us-bank-bosses-be-grilled-by-senators-2023-12-06/