2023-11-27 05:36

A look at the day ahead in European and global markets from Wayne Cole. Asia started Monday in hesitant fashion and has turned steadily grimmer, although there is no obvious catalyst for the risk-off mood. Most regional share markets are modestly lower, as are Wall Street and European futures. Treasury yields are a few basis points higher, but that hasn't helped the dollar which lost ground to a broadly firmer yen. Oil prices have slipped further, while gold hit a six-month high above $2,017 an ounce - although no fundamental factors were evident behind the move. China's central bank announced it would encourage financial institutions to support private companies, including with a greater tolerance for non-performing loans. The market didn't seem impressed and China's blue chips (.CSI300) are down around 1.2%. There has been a build-up of reports about official steps to support the property sector, including white-listing companies for loans, yet it's still mostly talk rather than action. The official China PMI for November is due on Thursday and analysts generally look for a small pick-up and maybe a reading above 50.0. The approach of the month's end could also generate some caution given the hefty gains investors are sitting on. Japan's Nikkei (.N225) is up more than 8% so far in November, as is the S&P 500 - and that would be its best performance since mid-2022. About 55% of the S&P 500's component shares are trading above their 200-day moving averages, the highest share in nearly two months, according to LPL Financial. The oil market faces a tense few days ahead of a meeting of OPEC+ on Nov. 30, which was postponed from Sunday as producers struggled to forge a unanimous position. OPEC+ sources have said that African oil producers are seeking higher caps for 2024, while media reports suggest that Saudi Arabia may extend its additional 1 million bpd voluntary production cut which is due to expire at the end of December. Brent was down another 0.8% today, and 8.6% for the month so far, which if sustained would be a boon both for the battle against inflation and for consumer spending power. The Federal Reserve's favoured measure of inflation - personal consumption expenditures - is due on Thursday and forecast to dip back to 3.1%, in part due to falling gas prices. The core is seen easing to 3.5%, its lowest since mid-2021. Data on EU inflation is also due Thursday, along with measures for Germany and Spain. Core EU inflation is forecast at 3.9%, the lowest since the middle of last year. If realised, this will support market wagers of no more rate hikes, and policy easing in 2024. Futures imply around 80 basis points of cuts for both the Fed and the ECB, starting in June. Fed Chair Jerome Powell will have a chance to push back against the doves at a Fireside Chat on Friday, and there are at least seven other Fed speakers on the docket this week. European Central Bank President Christine Lagarde has also sounded in no hurry to ease and will have another opportunity to drive home the message at the EU parliament later on Monday. Key developments that could influence markets on Monday: - ECB President Christine Lagarde at ECON Hearing before the Committee on Economic and Monetary Affairs of the European Parliament - UK CBI distributive trades for Nov - U.S. new home sales, building permits for Oct https://www.reuters.com/markets/europe/global-markets-view-europe-2023-11-27/

2023-11-27 05:31

SILKYARA, India, Nov 27 (Reuters) - Rescuers on Monday brought in "rat miners" to drill through a narrow pipe and help pull out 41 construction workers trapped in a tunnel in the Indian Himalayas for more than two weeks after high-powered machines failed, officials said. The men, low-wage workers from India's poorest states, have been stuck in the 4.5km (3 miles) tunnel in Uttarakhand state since it collapsed on Nov. 12. The men have been getting food, water, light, oxygen and medicines through a pipe but efforts to dig a tunnel have run into a series of snags with machines. Attempts to drill a tunnel horizontally through the debris trapping the men have been plagued by damage to machinery and rescuers will resort to drilling by hand, after clearing away the broken equipment inside the narrow evacuation pipe. The drilling from inside the pipe, which is 900 millimetres (3 feet) wide, will be done by a team of six "rat miners" from central India, who officials described as "skilled workers". "Rat mining" is a primitive, hazardous and controversial method used in India mostly to remove coal deposits through narrow passages. The name comes from its resemblance to rats burrowing through narrow holes. "Three of us will go inside the tunnel, one will do the drilling the other will collect muck and the third one will push the muck through the trolley," Rakesh Rajput, one of the miners, told Reuters. "We have been doing it for more than 10 years and there's enough space for us. The 41 men are also labourers and we all want to bring them out," he said. "SURE-SHOT WAY" Government and private agencies involved in the rescue have been pursuing other options. On Sunday, they opened another route to the men, aiming to drill a shaft straight down from the top of the mountain above. By Monday afternoon, they had drilled 31 metres (102 ft) of the 86 metres (282 ft), officials said, adding that the focus remains on the horizontal route. "Skilled labourers will do the manual drilling," said Harpal Singh, a former head of state-run Border Roads Organisation. "This is a sure-shot way of making progress." Bad weather could complicate the rescue. Thunderstorms, hail and lower temperatures with a minimum of 9 degrees Celsius (48.2 degrees Fahrenheit) are forecast in the mountains. "They are trained in working in every situation so that's not a worry for us," said Mahmood Ahmad, managing director of the NHIDCL company, which is building the tunnel. Prime Minister Narendra Modi's principal secretary, or chief of staff, P.K. Mishra visited the site and spoke to the trapped men through a communication link. He told them "everyone is making efforts to bring all of you out as early as possible". The tunnel is part of the Char Dham highway, one of Modi's most ambitious projects, aimed at connecting four Hindu pilgrimage sites through 890km of roads. Authorities have not said what caused the cave-in which trapped the men as they were nearing the end of their night shift but the region is prone to landslides, earthquakes and floods. https://www.reuters.com/world/india/rainy-weather-closing-indian-rescuers-trying-reach-trapped-men-2023-11-27/

2023-11-27 04:59

SYDNEY, Nov 27 (Reuters) - Australia on Monday appointed the Bank of England's (BoE) Andrew Hauser as the new deputy governor of the Reserve Bank of Australia (RBA), filling a position that had been vacant since Michele Bullock was elevated to the top role two months ago. Hauser, the executive director of markets at the BoE, is expected to start his five-year term before the first RBA board meeting next year. "I am humbled and deeply honoured to be asked to serve as the RBA’s next Deputy Governor," said Hauser, who is British and has 30 years of experience at the BoE. "I look forward to working closely with Michele Bullock, her senior team and the talented staff of the RBA to serve the Australian people, and to make a reality of the recommendations in the RBA Review." Hauser has a master's degree in economics from the London School of Economics and a degree from Oxford University. The appointment of an external candidate to the senior leadership of the RBA is the latest move by the government to revamp the decade-old institution after a review recommended sweeping changes. The government will also introduce legislation this week that would create a governance board, paving way for more changes in the new year. Treasurer Jim Chalmers said on Monday that Hauser's appointment would help ensure Australia has the most effective central bank to meet current and future economic challenges. "His appointment strikes the right balance between providing deep central banking experience and offering a fresh, global perspective to the work of the RBA," Chalmers said. Bullock welcomed the appointment. "I warmly congratulate Andrew on his appointment," Bullock said. "He has great experience and will bring a welcome external perspective to the Bank and the Reserve Bank Board." https://www.reuters.com/markets/australia-appoints-boes-andrew-hauser-new-rba-deputy-governor-2023-11-27/

2023-11-26 22:01

Nov 27 (Reuters) - A look at the day ahead in Asian markets. Asian markets on Monday could kick off the last week of the month in a bullish mood, as investors looking to claw back some of the previous session's losses draw support from the lowest volatility on Wall Street in nearly four years. The VIX index of S&P 500 implied volatility - the so-called Wall Street 'fear index' - closed at 12.46 on Friday, its lowest close since January 2020. This, and possible hopes for a more lasting ceasefire between Hamas and Israel, could boost sentiment and risk appetite at the open on Monday. Looking ahead to the rest of the week, the stand-out regional events that could move markets include policy decisions from New Zealand, South Korea and Thailand, inflation figures from Australia, and third-quarter GDP data from India. The first purchasing managers index (PMI) numbers for October start trickling in too, which will give a glimpse into how private sector manufacturing and services activity held up this month in a number of key countries including China, Japan and Australia. Monday's regional data calendar is light, with the highlight being Chinese industrial sector profits for the first 10 months of the year. Year-to-date profits have fallen every single month since June last year, reaching a nadir of -22.9% in February this year. But the pace of decline has slowed since, indicating that corporate China is getting its house back in order. Slowly. The People's Bank of China has steered the yuan down from its multi-year lows against the dollar to its strongest level since late July, but investors are still extremely cautious on Chinese assets. China's CSI300 index of blue chip stocks last week fell for a second week in a row, underperforming regional and global peers - MSCI's Asia Pacific ex-Japan and Emerging Market stock indices both rose for a second week in a row, and the MSCI World index and Wall Street's big three all rose for a fourth week. Three central banks in the Asia & Pacific region hold policy meetings this week. Like Bank Indonesia last week, the central banks of New Zealand, South Korea and Thailand are all expected to leave key rates unchanged. With the U.S. Federal Reserve probably on hold for the next six months or so, according to current rate futures market pricing, Asian central banks will probably refrain from policy changes and remain in a holding pattern too. Inflation in some countries is sticky and exchange rates are weak, so policymakers will be wary of cutting rates prematurely. But, broadly speaking, no further tightening from the Fed gives central banks in Asia a bit more breathing room. On the political front, meanwhile, China, Japan and South Korea have agreed to restart cooperation and pave the way for the first summit between the three since 2019, in the latest move to ease tensions between the Asian neighbors. Here are key developments that could provide more direction to markets on Monday: - China industrial sector profits - Japan service sector PPI - U.S. Treasury auctions two- and five-year notes https://www.reuters.com/markets/asia/global-markets-view-asia-pix-2023-11-26/

2023-11-26 21:42

KYIV, Nov 26 (Reuters) - President Volodymyr Zelenskiy on Sunday thanked Ukraine's military for fighting Russian attacks and its rescue services for tackling the consequences of extreme winter weather that he said had deprived about 400 settlements in 10 regions of power. In his nightly video address, Zelenskiy said relentless, intense battles were ongoing in the eastern regions of Donetsk and Kharkiv, while "extremely challenging weather" was affecting areas from Kyiv region in the north to Odesa in the south. In Russian-controlled territory, Oleg Kryuchkov, a senior Moscow-installed official, said nearly half a million people were without power in Crimea, the peninsula Russia annexed in 2014. The Russian-installed heads of Crimea, of the Black Sea port of Sevastopol, and of the part of Kherson region under Moscow's control, declared days off for Monday amid reports of high winds, flooded homes and snowbound roads, and damaged buildings. Ukraine's border service said Moldova had temporarily suspended vehicle access to its territory from two crossing points in Odesa region. Moldovan authorities also asked local schools to consider closing due to snowfall and high winds. Odesa Mayor Henadii Trukhanov urged residents of his Black Sea port to stay at home. Local authorities warned that water supplies were being interrupted by power cuts that stopped pumps from working and urged people to preserve supplies. Power grid operator Ukrenergo shared a photograph of a transmission tower in Odesa region whose leg had snapped in two due to high winds, adding, "We are doing everything possible to overcome the consequences of the bad weather as soon as possible and restore light to every home." (This story has been updated to remove incorrect images) https://www.reuters.com/world/europe/zelenskiy-praises-ukrainians-battles-with-russia-weather-2023-11-26/

2023-11-26 18:05

FRANKFURT, Nov 26 (Reuters) - German logistics entrepreneur Klaus-Michael Kuehne is examining a takeover of Signa Group's abandoned Elbtower high-rise project in his hometown of Hamburg, Handelsblatt reported. Construction of the skyscraper halted in early November, when Signa stopped paying its builder. Discussions on the takeover by Kuehne are quite advanced, but no decision has been made, German newspaper Handelsblatt reported, citing a source. Kuehne is the majority owner of transport group Kuehne und Nagel (KNIN.S) as well as a stakeholder in German airline Lufthansa (LHAG.DE) and shipping firm Hapag Lloyd (HLAG.DE). Signa, owner of New York's Chrysler Building and Britain's Selfridges store, and spokespeople for Kuehne and the city of Hamburg did not respond to requests for comment on Sunday. Founded by Austrian billionaire René Benko, Signa faces a storm of high construction costs and rising loan interest rates. This led to the insolvency of its subsidiary Signa Real Estate Management Germany on Friday, Spiegel magazine reported. Construction had halted at six sites under development by Signa in Germany by mid-November, underscoring the depth of troubles at the firm and the broader real estate sector. https://www.reuters.com/business/germanys-kuehne-examines-offer-signas-hamburg-skyscraper-report-2023-11-26/