2023-11-11 11:16

ACAPULCO, Mexico, Nov 11 (Reuters) - Residents of Acapulco stunned by a devastating hurricane are now battling with another blight trailing in the storm's wake: garbage piling up in streets, fanning concern about the spread of disease in the Mexican beach resort. Hurricane Otis, which roared through Acapulco in the early hours of Oct. 25, was the most powerful storm on record to strike Mexico's Pacific coast, killing dozens of people and wrecking thousands of homes in the city of nearly 900,000. Its 165 miles per hour (266 km per hour) winds caused major flooding, destroying furnishings, bedding and household appliances that were dumped outside homes alongside bags of rotting organic waste that have fed putrid smells in the city. The government has sent in thousands of soldiers to help clean up Acapulco, but residents say rubbish has engulfed some areas so quickly that even traffic is being held up. "They need to come and get the trash because there's too much of it," said Rosa Pacheco from the La Mira neighborhood in the west of the city, where some locals have had to remove rubbish from roads to allow cars to get through. "There's almost no way through, because there's more and more trash every day," the 46-year-old homemaker added. Mexico's Civil Protection authority did not reply to a request for comment, but the government said getting Acapulco cleared up is a top priority. When questioned about the garbage this week, President Andres Manuel Lopez Obrador said authorities are fumigating the city to prevent disease, and would deal with the problem. "Everything is going to be cleaned up," he said. Food, water and other basic necessities ran low after shops were ransacked and power and communications went down in the wake of Otis, so the government has directed much of its energy toward ensuring residents receive essential supplies. However, experts on the spread of disease have warned that mosquito-borne illnesses such as dengue could begin cropping up if the city allows waste to block drainage and harm the water supply. Mosquitoes breed in standing water. "Let's say getting drinking water and power up and running again is the top priority, then removal of waste, ensuring drainage is working and sorting out stagnant water," said Alejandro Macias, a leading Mexican epidemiologist. If not, he said, conditions could be ripe for yellow fever mosquitoes. "When you've got large numbers of yellow fever mosquitoes, dengue outbreaks are only a matter of time." https://www.reuters.com/world/americas/mexicos-acapulco-hit-by-garbage-pile-up-after-deadly-hurricane-2023-11-11/

2023-11-11 06:59

SYDNEY, Nov 11 (Reuters) - The Australian government said on Saturday that it was coordinating a response to a cybersecurity incident that forced ports operator DP World Australia to suspend operations at ports in several states. A DP World Australia spokesperson told Reuters on Saturday that operations at impacted ports were not yet restored. A statement said the company was "working around the clock to restore normal operations safely" after the breach was detected late on Friday. Home Affairs Minister Clare O'Neil said on social media platform X, formerly known as Twitter, on Saturday that the government was coordinating a response. Australia's National Cyber Security Coordinator, appointed earlier this year in response to several major data breaches, was managing the official response to the incident, O'Neil said. DP World Australia, part of Dubai's state-owned ports giant DP World, operates four container terminals in Australia in Melbourne, Sydney, Brisbane and Western Australia's Fremantle. According to DP World, in the Asia Pacific region it employs more than 7,000 people and has ports and terminals in 18 locations. https://www.reuters.com/technology/cybersecurity/australia-ports-operator-suffers-cybersecurity-incident-suspends-operations-2023-11-11/

2023-11-11 00:33

TOKYO, Nov 10 (Reuters) - Japan's Cosmo Energy Holdings (5021.T) could struggle to win shareholder backing for a revised "poison pill" strategy, its chief executive said on Friday, as the company seeks to defend itself from activist investors pursuing a hostile takeover. Japan's third-biggest oil refiner is calling another shareholder vote on Dec. 14 to seek approval to discourage an activist group led by Yoshiaki Murakami from increasing its stake to 24.56% from its current 20%. "We are fighting against heavy odds, as we know that certain investors flatly oppose any takeover defence," CEO Shigeru Yamada told Reuters in an interview. Cosmo has for more than a year been trying to fight off Murakami. In June, a previous vote on a poison pill to dilute the activists' stake if they buy more shares without following set procedures succeeded. The upcoming vote is whether to block further purchases by the activists even when they comply with the set procedures. Yamada said the company this time decided against adopting the tactic introduced in June, known as "a majority of minority vote", because its use could detract from the fundamental question of who would be best suited to increasing the value of the company. "We want to ask shareholders whose plans can boost the shareholder value, ours or Murakami-san?" he said. Majority of minority votes prevent specific shareholders from voting, a practice some governance experts say could serve as a new weapon against shareholder activism. Yamada said the Murakami group does not have a concrete management strategy to improve Cosmo's corporate value. The group, which says Cosmo's shares are undervalued, has floated ideas such as consolidating refineries and selling off the oil and gas development unit. Yamada said refineries and oil and gas development will be the companies core business until around 2030 and consolidation or selling them would undermine shareholders' interests. https://www.reuters.com/business/energy/japans-cosmo-braces-poison-pill-anti-activist-vote-2023-11-10/

2023-11-11 00:04

Nasdaq posts biggest one-day jump since May 26 All S&P 500 sectors end higher Investors looking ahead to CPI next week Illumina falls on annual profit forecast cut Indexes up: Dow 1.15%, S&P 1.56%, Nasdaq 2.05% Nov 10 (Reuters) - Wall Street's main indexes ended with big gains on Friday, boosted by heavyweight tech and growth stocks as Treasury yields calmed, while investors looked ahead to a next week's reports on inflation and other economic data. The tech-heavy Nasdaq Composite (.IXIC) posted its biggest one-day percentage rise since May 26. Equities bounced back from declines the previous session which followed hawkish comments from Federal Reserve Chair Jerome Powell about interest rates. Thursday's drop ended the longest winning streaks in two years for the S&P 500 (.SPX) and the Nasdaq. Investors have been focused on benchmark Treasury yields, which have eased somewhat from 16-year highs, and monetary policy as they assess whether the Fed might be done raising rates to control inflation and when the central bank could start cutting rates. “We have had rates roll over here a little bit and I think that’s one of the reasons we have seen this rally over the last couple of weeks,” said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana. “If you think this rally has legs, yesterday gave you an opportunity to go buy some stocks today." Next week the consumer price index report will be closely watched, along with data on producer prices and retail sales, which will further shape interest rate projections. "In general, the expectation investors have is that the upcoming inflation data is going to be positive for the market and I think they want to get in front of it a little bit,” said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey. The Dow Jones Industrial Average (.DJI) rose 391.16 points, or 1.15%, to 34,283.1, the S&P 500 (.SPX) gained 67.89 points, or 1.56%, to 4,415.24 and the Nasdaq Composite (.IXIC) gained 276.66 points, or 2.05%, to 13,798.11. The S&P 500 posted its highest closing level since Sept 19. All 11 S&P 500 sectors ended in positive territory, led by a 2.6% gain for the technology sector (.SPLRCT). Megacap stocks that have propelled the market higher this year also rose solidly on Friday. Nvidia (NVDA.O) rose about 3%, with Meta Platforms (META.O) up 2.6% and Microsoft (MSFT.O) up 2.5%. "People are looking at megacap tech and saying in an environment of higher rates and a slowing economy, these companies remain the best place to be and are willing to pay a premium for them,” Meckler said. For the week, the Dow rose about 0.7%, the S&P 500 gained 1.3% and the Nasdaq climbed 2.4%. Helping support equities, the yield on the benchmark 10-year Treasury note was little changed at 4.62% the day after a jump that was partly driven by a weaker-than-expected 30-year bond auction. Data on Friday showed U.S. consumer sentiment fell for a fourth straight month in November, and households' expectations for inflation rose again. In company news, Illumina (ILMN.O) shares dropped 8% as the genetic testing company trimmed its full-year profit forecast for the second straight quarter. Advancing issues outnumbered decliners by a 2.7-to-1 ratio on the NYSE. There were 70 new highs and 152 new lows on the NYSE. On the Nasdaq 2,589 advancing issues outnumbered decliners by a 1.6-to-1 ratio on the Nasdaq. The Nasdaq recorded 61 new highs and 353 new lows. About 10.2 billion shares changed hands in U.S. exchanges, compared with the roughly 11 billion daily average over the last 20 sessions. https://www.reuters.com/markets/us/futures-mixed-after-powells-hawkish-tone-more-data-awaited-2023-11-10/

2023-11-10 23:30

Nov 10 (Reuters) - Hospitality workers in Las Vegas reached a tentative labor deal with Wynn Resorts (WYNN.O) hours before a strike deadline, their unions said on Friday, ending the threat of a labor stoppage against casino operators that could have crippled tourism in the city. The new five-year agreement covers 5,000 employees at two Wynn Resorts properties and follows similar deals for 35,500 workers with rivals Caesars Entertainment (CZR.O) and MGM Resorts International (MGM.N) earlier this week. U.S. President Joe Biden hailed the deals on Friday and congratulated the unions. "This agreement will help give all workers the quality of life they deserve," Biden said in a statement. The deal with Wynn and the Culinary Workers and Bartenders Unions marks the end of negotiations between the unions and the largest casino operators in the city. It follows a series of successful labor actions in the automotive and entertainment industries, as workers sought wage hikes at a time when companies have enjoyed strong sales. Meanwhile, the unions said negotiations are ongoing with 24 smaller casinos and resorts, including properties owned or operated by Hilton Worldwide (HLT.N) and Hilton Grand Vacations (HGV.N). About 18,000 workers including cooks, bartenders and housekeepers are working under a labor contract extension. The extension has been in place since June 1 and can be terminated with a seven-day notice. Financial details of the Wynn agreement were not immediately available, but the Las Vegas unions, considered among the most powerful in the United States, said they had secured the largest wage increases ever negotiated in their history. "This union's gains in wage increases will certainly address the heightening income inequality that has been rising not only within this particular industry but also in the national service economy," said Daniel Cornfield, a Vanderbilt University sociology professor. The agreement reduces housekeeping room quotas, mandates daily room cleanings and extends recall rights for workers, providing them with the option to return to their jobs in the event of another pandemic or economic crisis for up to three years. "We are very pleased that we were able to reach an agreement," Wynn said in a statement, adding that it was looking forward to a ratification of its tentative agreement soon. Shares of the company fell nearly 6%, on pace for their largest daily percentage drop since May. Mandatory daily room cleanings create job security for workers and improve the quality of the service for the consumer, said Cornfield. "It's a win-win achievement." Casino resort operators in Las Vegas have been earning record profits from a steady post-pandemic recovery. Visits to the city in September were 4% lower than in the same period in 2019, according to data from the Las Vegas Convention and Visitors Authority. Room rates, however, have surged more than 47%. The city will be hosting the Formula 1 Las Vegas Grand Prix this month and the Super Bowl, which is scheduled to take place in February. https://www.reuters.com/business/casino-operator-wynn-resorts-reaches-labor-deal-with-las-vegas-unions-2023-11-10/

2023-11-10 23:26

Nov 10 (Reuters) - Moody's on Friday changed the outlook on the government of United States of America's ratings to "negative" from "stable". The rating agency said it expects United States' fiscal deficits will remain very large, significantly weakening debt affordability. Moody's affirmed the long-term issuer and senior unsecured ratings at "Aaa". COMMENTS: MARK SOBEL, FORMER SENIOR TREASURY OFFICIAL "We need to get our act together. "Our debt is completely sustainable for well into the future. But everybody knows that the U.S. debt trajectory for the coming decades under unchanged policies is quite adverse and no credit rating agency is offering us any new insights on our fiscal dynamics." STEVEN RICCHIUTO, U.S. CHIEF ECONOMIST, MIZUHO SECURITIES USA LLC, NEW YORK “The behavior that's taking place on Capitol Hill in terms of not dealing with the fiscal situation when you've got a $1.5 trillion structural deficit is clearly a problem that will be reflected in terms of the market. “I think it was a mistake for them to do it on a Friday afternoon because that means the first market that is going to react to it is Japan. The Japanese are significant holders of U.S. debt and it's a much less liquid market. Therefore, you could wind up with a bit more of an outside immediate response in the overseas market come Sunday night.” THIERRY WIZMAN, GLOBAL FX & INTEREST RATES STRATEGIST, MACQUARIE, NEW YORK “I certainly don't think that Moody’s is saying anything at this point that traders in the broader market don't already know or haven't already figured out. “Moody’s decided that they needed to converge with the market’s view, which is that the U.S. is from the sovereign risk perspective, is clearly a less safe place to invest in than it was pre-COVID and before this run up in debt.” MICHAEL GREEN, CHIEF INVESTMENT STRATEGIST, SIMPLIFY ASSET MANAGEMENT, NEW YORK, NY "All that Moody's doing is they're acknowledging that the path that we're on right now is politically dysfunctional, and that if we continue on it, either through much higher level of interest rates or through the political dysfunction, that lowers the probability that we can effectively address financial issues if they emerge." "I don't think that there is a significant consequence. I would hope that the message is interpreted by both Republicans and Democrats as a warning sign that the U.S. needs to start behaving in a more fiscally responsible manner and governing in a more cohesive framework." JACK ABLIN, CHIEF INVESTMENT OFFICER, CRESSET CAPITAL, CHICAGO “It’s not about our ability to pay, it's just an indictment of our governance and how our Congress and essentially the legislature manage our finances.” “I think that it really is a governance issue and I think the question is how we can navigate extending this debt ceiling and getting a budget passed.” “I don’t think this is enough necessarily to rattle the cages of bond market vigilantes but I don’t see any light at the end of that governance tunnel.” “The problem is ultimately, the only thing that is going to get Congress together is a crisis.” QUINCY KROSBY, CHIEF GLOBAL STRATEGIST, LPL FINANCIAL, CHARLOTTE, NORTH CAROLINA: "The markets have been through this a number of times over the last six, seven months. It's interesting that it's on a Friday, so the market has a couple of days to absorb this. But especially coming into the possibility of a government shutdown, it is yet another reminder that the ratings agencies are focused on the ability of the government to craft a deal. "Even at the margin, this is not a positive, but the market will move on from this. Nonetheless, it is a reminder that the clock is ticking and the markets are moving closer and closer to understanding that we could go into another period of drama that could lead ultimately to the government shutting down." CAROL SCHLEIF, CHIEF INVESTMENT OFFICER, BMO FAMILY OFFICE, MINNEAPOLIS, MN "It's not entirely surprising given the given the level of debt. Moody's probably weighed on a combination of things. We've had sloppy auctions a couple of different times in the last few weeks. They might just think that coming up again on yet another potential government shutdown, and especially if they continue to push the candle on the road rather than solve the problem, that can have weighed on it too. CHRISTOPHER HODGE, CHIEF ECONOMIST FOR THE U.S., NATIXIS "It is hard to disagree with the rationale, with no reasonable expectation for fiscal consolidation any time soon. Deficits will remain large (even if not expanding) and as interest costs take up a larger share of the budget, the debt burden will continue to grow. This only adds to the dour mood music with political turmoil, looming potential government shutdown, and the weak 30-year auction yesterday. None of the information is new so it is hard to see a huge market implication, and this may in fact harden Republicans’ stance in the ongoing budget negotiations. So while this could increase the chance of a government shutdown next week, it also raises the odds of a slight pullback in discretionary spending in FY24" KARINE JEAN-PIERRE, WHITE HOUSE PRESS SECRETARY "Moody’s decision to change the U.S. outlook is yet another consequence of Congressional Republican extremism and dysfunction. Moody’s cites a number of recent actions by Congressional Republicans: repeatedly taking us to the brink of a government shutdown, shutting down Congress for three chaotic weeks because they were unable to unify around a leader, and holding the nation’s full faith and credit hostage. Whether it’s those actions or their continued attempts to increase the debt with tax giveaways for the wealthy and big corporations, extreme Congressional Republicans have undermined our economy at every turn." WALLY ADEYEMO, DEPUTY SECRETARY OF THE TREASURY "While the statement by Moody’s maintains the United States’ Aaa rating, we disagree with the shift to a negative outlook. The American economy remains strong, and Treasury securities are the world’s preeminent safe and liquid asset. The Biden Administration has demonstrated its commitment to fiscal sustainability, including through the more than $1 trillion in deficit reduction included in the June debt limit deal as well as President Biden’s budget proposals that would reduce the deficit by nearly $2.5 trillion over the next decade.” REPUBLICAN REPRESENTATIVE ANDY HARRIS, ON X SOCIAL MEDIA “Moody’s just downgraded our credit rating outlook to negative because of our out-of-control government spending and deficits. We cannot, in good conscience, continue writing blank checks to our federal government knowing that our children and grandchildren will be responsible for the largest debt in American history.” REPUBLICAN SENATOR JOHN CORNYN, ON X SOCIAL MEDIA “Bidenomics: United States credit-rating outlook was changed to negative from stable by Moody’s Investors Service, which said the downside risks to the country’s fiscal strength have increased.” https://www.reuters.com/markets/us/view-moodys-changes-us-ratings-outlook-negative-affirms-aaa-2023-11-10/