2024-08-03 05:09

Aug 3 (Reuters) - Tropical storm Debby formed late Saturday and was expected to surge up into a hurricane before it slams into Florida's northern Gulf Coast shoreline on Monday, the National Hurricane Center said. The storm turned into a tropical storm after days of spinning as a broad, sloppy system in the Atlantic, finally shoving off Cuba's northern coast on Saturday evening, when it was about 100 miles west-southwest of Key West, Florida, forecasters said. "It's become clearer and clearer that Debby will become a hurricane before it makes landfall," said Jamie Rhome, the deputy director of the NHC, urging people to heed evacuation orders. The storm was crawling at 14 mph (23 kph) into the Gulf Coast about 240 miles (386 km) south of Tampa, where its winds were expected to grow from 40 mph up to 70 mph or more as it gains strength overnight. "This is a life threatening situation," the NHC said in a late Saturday report. Debby was already whipping up rain squalls, winds of 40 mph and surging tides in Key West, Florida on Saturday night. "There are a host of hazards, not just the wind," Rhome said. He warned of storm surges up to 7 feet (2 m) along Florida's Big Bend area where it is expected to hit just southeast of Florida's Panhandle. "Now, I stand at six feet tall," Rhome said. "So that's over my head," he said. He added that heavy rains of 10 inches (25 cm) with spots of 15 inches of rain could be expected, more if the storm slows down or stalls over land. Debby is expected to cut across Central Florida out to the Atlantic coast and crawl up to Savannah, Georgia, and then toward Charleston, South Carolina. Ocean surges are forecast for Bonita Beach northward to Tampa Bay. Those surges could send sea waves further inland than normal, damaging structures and endangering anyone in their path. Parts of three Gulf Coast Florida counties, Pasco, Hernando and Citrus, issued mandatory or voluntary evacuation orders on Saturday. A tropical storm warning is in effect for extreme southern Florida and stretching as far north as the Fort Myers area, which was crushed by Hurricane Ian in 2022. Governor Ron DeSantis has called up 3,000 National Guardsmen and put most of the state's cities and counties under emergency orders ahead of the expected landfall. U.S. forecasters expect a large number of Atlantic hurricanes to form in the 2024 season, which began June 1, with four to seven major hurricanes forming out of 25 named storms. That is more than the record-breaking 2005 season that spawned hurricanes Katrina and Rita. Only one hurricane, Beryl, has formed in the Atlantic so far this year. The earliest Category 5 storm on record, it ravaged the Caribbean and Mexico's Yucatan Peninsula before rolling up the Gulf Coast of Texas as a Category 1 storm, with winds up to 95 mph. Debby is expected to follow a similar track as the deadly 2022 Hurricane Ian, which killed at least 103 people in Florida and caused billions of dollars in damage as it made its way along the Gulf Coast. Sign up here. https://www.reuters.com/world/us/florida-path-potential-tropical-storm-heading-across-gulf-coast-2024-08-03/

2024-08-02 23:34

Aug 2 (Reuters) - Talen Energy Corporation (TLN.O) , opens new tab said on Friday it would work with utility companies, PJM Interconnection, and PPL Electric Utilities Corporation to respond quickly to a question from the Federal Energy Regulatory Commission. FERC, the federal agency that oversees interstate power transmission, sent a letter earlier on Friday stating that PJM's request to change an agreement involving the utility, Susquehanna Nuclear, and PPL Electric Utilities is incomplete. The regulator said it would need more information before it can process this request. On June 3, PJM Interconnection, the largest U.S. power grid operator, submitted an amended Interconnection Service Agreement to FERC to increase the load at Talen's co-located data center at the Susquehanna nuclear power plant from 300 MW to 480 MW. Talen, an independent power producer, had said in March that it had agreed to sell its co-located data center and as much as 960 megawatts of capacity, to Amazon Web Services. Building data centers on the same premises as power plants can enable quicker operational startup compared to building them on the utility side of the grid, as it eliminates the wait times associated with large-scale transmission and distribution. Talen's interconnection agreement has been challenged by regulated electric utilities including American Electric Power (AEP.O) , opens new tab and Exelon (EXC.O) , opens new tab, who have requested a hearing from FERC to thoroughly examine or possibly reject Talen's interconnection agreement with Amazon (AMZN.O) , opens new tab. They have argued that the agreement for the data center might lead to an annual cost shift of $140 million to regular ratepayer's. Talen, which owns and operates Susquehanna Nuclear, said it expects the commission to find the amendments will "not negatively impact system-wide reliability." Sign up here. https://www.reuters.com/business/energy/talen-energy-respond-regulator-seeks-details-proposed-changes-2024-08-02/

2024-08-02 23:22

US labor growth misses expectations; unemployment rate rises Bets rise for a 50 basis point Fed rate cut in September Consumer Discretionary is worst-hit index Indexes down: Dow 1.51%, S&P 1.84%, Nasdaq 2.43% NEW YORK, Aug 2 (Reuters) - U.S. stocks sold off for a second straight session on Friday, and the Nasdaq Composite confirmed it was in correction territory after a soft jobs report stoked fears of an oncoming recession. The Labor Department said nonfarm payrolls increased by 114,000 jobs last month, well short of the 175,000 average forecast by economists polled by Reuters, and the at least 200,000 that economists believe are needed to keep up with population growth. The unemployment rate jumped up to 4.3%, near a three-year high. The data added to concerns the economy was slowing more rapidly than anticipated and the Federal Reserve had erred by keeping rates steady at its policy meeting that concluded on Wednesday. Expectations for a rate cut of 50 basis points (bps) at the Fed's September meeting jumped to 69.5% from 22% in the prior session, according to CME's FedWatch Tool , opens new tab. "Obviously the jobs number is the big headline, but we seem to have officially entered at least a rational world where bad economic news is read as bad rather than bad economic news is read as good," said Lamar Villere, portfolio manager at Villere & Co. in New Orleans. "The Fed is going to cut and we're all sort of adjusted to that, that is sort of established. Now it's more like hey, did they wait too long? Do we have a recession on our hands?" The weak jobs data also triggered what is known as the "Sahm Rule," seen by many as a historically accurate recession indicator. The Dow Jones Industrial Average (.DJI) , opens new tab fell 610.71 points, or 1.51%, to 39,737.26, the S&P 500 (.SPX) , opens new tab lost 100.12 points, or 1.84%, to 5,346.56 and the Nasdaq Composite (.IXIC) , opens new tab lost 417.98 points, or 2.43%, to 16,776.16. Adding downward pressure was drop in Amazon (AMZN.O) , opens new tab, down 8.79%, and Intel (INTC.O) , opens new tab, which plunged 26.06% after their quarterly results and disappointing forecasts. The declines pushed the Nasdaq Composite down more than 10% from its July closing high to confirm the index is in a correction after concerns grew about expensive valuations in a weakening economy. The S&P 500 closed at its lowest level since June 4. Both the benchmark S&P index and the blue-chip Dow suffered their biggest two-day slides since March 2023. The small cap Russell 2000 index (.RUT) , opens new tab slumped 3.52% to close at a three-week low and saw its biggest two-day drop since June 2022. Chip stocks also continued their recent downdraft, and the Philadelphia SE Semiconductor Index (.SOX) , opens new tab closed at a three-month low after its biggest two-day slide since March 2020. Among the few bright spots, Apple (AAPL.O) , opens new tab rose 0.69% after posting better-than-expected third-quarter iPhone sales and forecasting more gains, betting on AI to attract buyers. Of the 11 major S&P 500 sectors, defensive names such as consumer staples (.SPLRCS) , opens new tab, utilities (.SPLRCU) , opens new tab and real estate (.SPLRCR) , opens new tab were the only advancers, with the consumer discretionary (.SPLRCD) , opens new tab sector leading declines as Amazon weighed heavily, for its biggest two-day drop since June 2022. The CBOE Volatility index (.VIX) , opens new tab, also known as Wall Street's "fear gauge," breached its long-term average level of 20 points to touch 29.66 its highest mark since last March 2023, before closing at 23.39. Some market participants viewed the sell off as a chance to pickup stocks at cheaper prices. UBS strategist Jonathan Golub said in a note to clients on Friday that market returns are greatest when the VIX is extended and represents a near-term buying opportunity. Declining issues outnumbered advancers by a 2.92-to-1 ratio on the NYSE, and by a 4.52-to-1 ratio on the Nasdaq. The S&P 500 posted 62 new 52-week highs and 15 new lows, while the Nasdaq Composite recorded 34 new highs and 297 new lows. Volume on U.S. exchanges was 14.75 billion shares, compared with the 11.97 billion average for the full session over the last 20 trading days. Sign up here. https://www.reuters.com/markets/us/futures-slide-amazon-intel-forecasts-disappoint-jobs-data-awaited-2024-08-02/

2024-08-02 22:07

BUDAPEST, Aug 2 (Reuters) - Slovakia and Hungary on Friday rebuffed a European Commission suggestion that they could replace lost Russian oil supplies via an alternative route through Croatia, saying it would be too costly. Supplies from Russia's biggest oil exporter Lukoil (LKOH.MM) , opens new tab through Ukraine were halted in July following a ban by Ukrainian authorities on Lukoil using the Druzhba pipeline, which links Russia to eastern Europe. Hungary and Slovakia earlier this month asked the European Commission to step in and mediate as the threatened their security of supply. But they are rejecting the European Commission's proposal to use spare capacity on the JANAF Adriatic pipeline in Croatia to supply both countries with oil not sourced in Russia. "Croatia is simply not a reliable country for transit," Hungary's Foreign Minister Peter Szijjarto said. "Oil transit prices were raised fivefold since the outbreak of the (Ukraine) war by Croatia." "It is a politically deeply offensive statement that we did not expect from the representative of the country to which ill-intentioned moves we have long responded with extreme restraint and moderation," Croatia's Foreign Minister Gordan Grlic Radman said. Slovakia, whose Hungarian-owned Slovnaft refinery already takes some oil via JANAF, also known as Adria, said on Friday it received a letter from the Croatian government offering to secure supplies. "But for what price? What capacity? No one knows that today," Slovak Foreign Minister Juraj Blanar said in a statement. Slovakia wants the Commission to get Ukraine to fully reinstate flows from Russia, but he said it will also search for another solution in case the Commission does not act. Following Russia's 2022 invasion, European Union prohibited oil imports to its member states in an attempt to wean itself off from Russian fossil fuels, but gave an exemption to Hungary, Slovakia and the Czech Republic to find alternative routes and supplies. Flows from Russian suppliers other than Lukoil via Druzhba have continued. EU commissioner Valdis Dombrovskis said Ukraine had confirmed that Lukoil oil flowing through Ukraine was at that point of its journey already owned by other entities and thus sanctions do not apply to it, raising questions about the cause of the interruption to the flow. Despite drawn-out talks over transit fees, Croatia's JANAF and Hungary's MOL (MOLB.BU) , opens new tab managed to sign a one-year contract in May 2023, on a transport and storage deal for 2.9 million tonnes of crude on the Adriatic pipeline to MOL's Hungarian and Slovak refineries. Hungary on Friday also complained that Croatia has failed to invest in capacity building, and has never proved the figure it has given for the maximum transit capacity of its pipeline. Janaf dismissed the allegations in a statement, saying that it has been continuously investing into its transport-storage system. It said it has tested its transport capacities on the section towards Hungary along with MOL and proved it can transport 1.2 million tonnes of crude oil monthly. "It is totally untrue that Janaf raised its fees in the past three years," it said in the statement. "Janaf is ready both technically and organisationally to supply the central European refineries with enough quantities of oil for the full capacity work. That is why we hope that we would find a satisfying solution for the continuation of long-term partnership through open talks and cooperation," it said. Sign up here. https://www.reuters.com/business/energy/hungary-says-croatia-unreliable-when-it-comes-oil-transit-2024-08-02/

2024-08-02 20:24

NEW YORK, Aug 2 (Reuters) - Economic fears are roiling Wall Street, as worries grow that the Federal Reserve may have left interest rates elevated for too long, allowing them to hurt U.S. growth. Alarming economic data in recent days have deepened those concerns. U.S. job growth slowed more than expected in July, a Friday report showed, while the unemployment rate increased to 4.3%, heightening fears that a deteriorating labor market could make the economy vulnerable to a recession. The jobs report exacerbated a selloff in stocks that began on Thursday, when data showing weakness in the labor market and manufacturing sector pushed investors to dump everything from chip stocks to industrials while piling into defensive plays. Richly valued tech stocks tumbled further on Friday, extending losses in the Nasdaq Composite (.IXIC) , opens new tab to more than 10% from a record closing high reached in July. The benchmark S&P 500 index (.SPX) , opens new tab has slid 5.7% from its July peak. “This is what a growth scare looks like,” said Wasif Latif, president and chief investment officer at Sarmaya Partners. “The market is now realizing that the economy is indeed slowing.” For months, investors had been heartened by cooling inflation and gradually slowing employment, believing they bolstered the case for the Fed to begin cutting interest rates. That optimism drove big gains in stocks: the S&P 500 remains up 12% this year, despite recent losses; the Nasdaq has gained nearly 12%. Now that a September rate cut has come into view following a Fed meeting this week, investors are fretting that elevated borrowing costs may already be hurting economic growth. Corporate earnings results, which saw disappointments from companies such as Amazon, Alphabet and Intel, are adding to their concerns. “We’re witnessing the fallout from the curse of high expectations," said James St. Aubin, chief investment officer at Ocean Park Asset Management. "So much had been invested around the scenario of a soft landing, that anything that even suggests something different is difficult.” Next week brings earnings from industrial bellwether Caterpillar (CAT.N) , opens new tab and media and entertainment giant Walt Disney (DIS.N) , opens new tab, which will give more insight into the health of the consumer and manufacturing, as well as reports from healthcare heavyweights such as weight-loss drugmaker Eli Lilly (LLY.N) , opens new tab. Bets in the futures markets on Friday suggested growing unease about the economy. Fed fund futures reflected traders pricing an over-70% chance of a 50-basis point cut at the central bank’s September meeting, compared to 22% the day before, according to CME FedWatch. Futures priced a total of 116 basis points in rate cuts in 2024, compared to just over 60 basis points priced in on Wednesday. Broader markets also showed signs of unease. The Cboe Volatility index (.VIX) , opens new tab - known as Wall Street’s fear gauge - hit its highest since March 2023 on Friday as demand for options protection against a stock market selloff rose. Meanwhile, investors have rushed into safe haven bonds and other defensive areas of the market. U.S. 10-year yields - which move inversely to bond prices - on Friday dropped as low as 3.79%, the lowest since December. Sectors that are often popular during times of economic uncertainty are also drawing investors. Options data for the Health Care Select Sector SPDR Fund (XLV.P) , opens new tab showed the average daily balance between put and call contracts over the last month at its most bullish in about three years, according to a Reuters analysis of Trade Alert data. Trading in the options on Utilities Select Sector SPDR Fund (XLU.P) , opens new tab also shows a pullback in defensive positioning, highlighting traders' expectations for strength for the sector. The healthcare sector (.SPXHC) , opens new tab is up 4% in the past month, while utilities (.SPLRCU) , opens new tab are up over 9%. By contrast, the Philadelphia SE Semiconductor index (.SOX) , opens new tab is down nearly 17% in that period amid sharp losses in investor favorites such as Nvidia (NVDA.O) , opens new tab and Broadcom (AVGO.O) , opens new tab. To be sure, some investors said the data could just be a reason to lock in profits after the market's overall strong run in 2024. “This is a good excuse for investors to sell after a huge year to date rally,” said Michael Purves, CEO of Tallbacken Capital Advisors. “Investors should be prepared for some major volatility, particularly in the big tech stocks. But it will probably be short-lived.” Sign up here. https://www.reuters.com/markets/us/wall-st-week-ahead-flaring-economic-worries-threaten-us-stocks-rally-2024-08-02/

2024-08-02 19:47

ZILEFTI, Greece, Aug 1 (Reuters) - Goat plague is the last thing Ioanna Karra needs. The Greek farmer lost nearly all her livestock and equipment in devastating flooding last year and now, as the deadly virus spreads across Greek farms, she must buy expensive disinfectant to keep her remaining animals safe. "We cannot bear the slightest damage for a second year in a row," Karra told Reuters from her dairy farm in the village of Zilefti in the Thessaly region of central Greece. Goat plague, also known as Peste des Petits Ruminants (PPR), was detected last month for the first time in Greece. The virus does not infect humans, but is highly contagious among goats and sheep and can kill up to 70% of those infected. Once a case is detected, the entire flock is culled, the affected farm is disinfected and authorities test animals in nearby areas for the disease, in line with protocols set by the European Union. The government this week imposed a temporary ban on the movement or slaughter of sheep and goats. Twenty-two farms have been infected, mostly in the centre of the country, 12,000 animals have been culled and more than 300,000 tested. While the numbers are not yet devastating, they worry farmers across Greece who are already battling the effects of climate change including blistering heat and erratic rainfall. Karra and her husband Thanasis Zouzoulas have no recorded cases of the disease. But they have to disinfect trucks that come to load milk on their farm. The ban on movements means they cannot buy more animals to bulk up their flock, although they are allowed to sell the milk. Karra said they have become much stricter with hygiene security measures. The virus comes as the couple still struggles with the consequences of record September storms that flooded about 35,000 acres in Thessaly plain, which accounts for 25% of Greece's agricultural produce and 5% of Greece's GDP. Some 30,000 farmers were impacted across the province. Karra and Zouzoulas lost 750 of their 800 animals and have only begun to restock. They say the virus came in to Greece because veterinary clinics are understaffed and do not make the necessary checks on imported animals. "We were talking about a possible crisis before the crisis," Karra said. PPR was first described in Ivory Coast in 1942 and has since spread across Africa, Europe and Asia. The United Nation's Food and Agriculture Organization estimates that the disease results in losses of up to $2.1 billion globally each year. Georgios Stratakos, a senior agriculture ministry official, said that the virus was imported but does not know where from yet. He said the ban will last until Sunday and be re-evaluated. The government is looking into compensation for those that lost livestock in the culling or were affected by the ban, he said. "It is definitely a big blow, but the government...will stand by these people." Sign up here. https://www.reuters.com/world/europe/goat-plague-scares-greek-farmers-still-reeling-historic-floods-2024-08-01/