2024-07-29 11:54

LONDON, July 29 (Reuters) - The London Metal Exchange (LME) has approved Red Sea port city Jeddah in Saudi Arabia as a warehouse delivery point for copper and zinc, it said on Monday. The exchange said the listing will become active three months after the first warehouse company has been approved in the new location. Warehouses registered with the LME, the world's largest and oldest metals trading venue, are usually located in areas of net metals consumption or top transit hubs such as Rotterdam. Saudi Arabia is planning an ambitious industrial development and logistics programme, part of its wider Vision 2030 reform plan, which aims to make the kingdom a major global player in the energy, mining, logistics and industry sectors. In March, the LME said it planned to add Jeddah as a new delivery point subject to consultation about a technical change to the LME warehouse framework. In a separate notice on Monday, the LME said that it had amended a clause in the LME's policy on the approval of locations as delivery points related to warehouse insolvency following a consultation. The LME is owned by Hong Kong Exchanges and Clearing (0388.HK) , opens new tab. Sign up here. https://www.reuters.com/markets/commodities/lme-approves-saudi-port-warehouse-delivery-point-2024-07-29/

2024-07-29 11:52

Reuters poll graphic on global economic growth forecasts - BENGALURU, July 29 (Reuters) - Optimism about global growth prospects this year and next is building among hundreds of economists polled by Reuters, with risks still tilted toward higher inflation even as they cling on to their forecasts for interest rate cuts. While most major central banks were successful last year in taming sky-rocketing inflation rates with rapid rate hikes, a resilient global economy with strong employment and wage growth has kept alive risks of price pressures surging again. In all, a 56% majority of economists - 114 of 202 who responded to a question about inflation in the global poll covering nearly 50 top economies taken July 8-25 - said it was more likely to be higher than they forecast for the remainder of the year than lower. So too with rates. The global economy was forecast to grow 3.1% this year and next, an upgrade from the 2.9% and 3.0% forecast in an April poll and roughly in line with the International Monetary Fund's latest prediction. But even with that upgrade, many central banks are still expected to cut rates at least twice by year-end. "I think the big story here is that growth globally has managed to keep grinding ahead ... the global economy has managed to hang in there in the face of a lot of stresses and strains and of course the major tightening cycle of the past two years," Douglas Porter, chief economist at BMO Capital Markets, said. "It's still growing a little faster than 3% despite a wide variety of challenges ... Our call is for growth to hang in there in the neighborhood of 3% through the second half." That optimism stands in contrast to worries earlier this year whether the U.S. economy would be able to absorb such an aggressive season of monetary tightening without a downturn, even though concerns about the No. 2 economy, China, remain. Growth rates for 24 of the 48 top economies surveyed were upgraded from three months ago, with 13 of those from developed economies, where there had been concerns about flagging demand, and the remaining 11 in emerging ones. Eighteen economies saw a downgrade and six were left unchanged. Still, among major central banks, economists expect the Federal Reserve and the Bank of England to cut rates twice this year, and the European Central Bank three, the survey showed. Forecasters have held to a more consistent view than financial traders and investors. Aggressive market pricing for rate cuts at the start of the year retreated from six Fed cuts, down to one or two recently, and is now back to three. With growth holding up for now, inflation still will mostly dictate how low interest rates can go and when. Even now a good majority of central banks - 19 of 27 with an inflation target - were not expected to meet it by end-2024. "Risks are building ... in global core goods prices, where shipping costs are nearing 2021/22 highs," James Rossiter, head of global macro strategy at TD Securities, said. "We don't expect as big a boost to inflation this time around ... But the threat of higher core goods inflation could reduce the offset to sticky services inflation and slow rate cuts." Asked which component of core inflation will be the most sticky for the remainder of 2024, a majority - 56 of 104 who responded to that question - said services, followed by 30 choosing shelter and rents. The remaining 18 cited others. A 60% majority, 131 of 220, said interest rates by the end of the year were more likely to be higher than they currently forecast instead of lower. (Other stories from the Reuters global economic poll) Sign up here. https://www.reuters.com/markets/global-economys-growing-resilience-odds-with-rate-cut-expectations-2024-07-29/

2024-07-29 11:48

BEIJING, July 29 (Reuters) - China's COSCO Shipping Corporation has signed a preliminary agreement with Australia's Fortescue (FMG.AX) , opens new tab to jointly build a green fuel supply chain to help reduce pollution from the shipping industry, the Chinese company said on Monday. The memorandum of understanding includes exploring construction and deployment of green ammonia-fuelled vessels owned either by COSCO or jointly owned by both companies to transport iron ore and other minerals to reduce carbon emissions in the China-Australia iron ore green shipping corridor. "We are committed to increasing cooperation with global partners to actively promote the green and sustainable development in the shipping industry throughout its life cycle," COSCO Shipping, headquartered in Shanghai, said in a statement on its WeChat account. "The cooperation marks another big step in decarbonising the shipping industry ... These solutions will be integral to achieving our net zero Scope 3 emission target by 2040," Fortescue, an integrated green technology, energy, and metals company and also known as the world's No.4 iron ore supplier, was cited as saying in the statement. Fortescue's executives had been in China in recent weeks talking with potential partners for joint projects, CEO Dino Otranto said on July 25. Fortescue conducted the world's first trial using ammonia as shipping fuel in the port of Singapore, Reuters reported in March. Sign up here. https://www.reuters.com/sustainability/climate-energy/chinas-cosco-shipping-fortescue-build-green-fuel-supply-chain-2024-07-29/

2024-07-29 11:08

DUBAI, July 29 (Reuters) - Iran seized the Togo-flagged tanker Pearl G in the Gulf on Friday and it was carrying 700,000 litres of smuggled Iranian crude, Tehran's semi-official Tasnim news agency reported on Monday. "Pearl G, which is owned by an Iraqi national residing in the UAE, was offloading smuggled oil from Iranian vessels," Tasnim reported, adding the vessel had been moved to the port of Bandar Imam Khomeini. Iran, which has some of the world's cheapest fuel due to subsidies and the plunge in the value of its currency, has been fighting rampant smuggling by land to neighbouring countries and by sea to Gulf Arab states. LSEG tracking data shows the Pearl G has spent the last 90 days sailing between the coast of Sharjah in the UAE and points off the coast of Iraq. The tanker with a crew of nine Indians was seized based on a judicial order, Tasnim added. Its registered manager is Jinsung Marine Service Co Ltd, according to LSEG. Last week, Iran's Islamic Revolutionary Guard Corps seized another Togo-flagged tanker carrying 1,500 tons of marine gas oil. Sign up here. https://www.reuters.com/markets/commodities/iran-finds-smuggled-crude-seized-tanker-tasnim-reports-2024-07-29/

2024-07-29 11:03

Putin congratulates Maduro on election win We have a strategic partnership with Venezuela, Putin says Kremlin: We will develop relations in all areas U.S. has cast doubt on the official election results MOSCOW, July 29 (Reuters) - Russian President Vladimir Putin on Monday congratulated Nicolas Maduro on winning the disputed Venezuelan election, and the Kremlin said it was deepening cooperation in all areas - including sensitive ones - with Caracas. Maduro and his opposition rival Edmundo Gonzalez have both claimed victory in the presidential election as Washington and some other foreign governments cast doubt on official results that gave the incumbent a win. The national electoral authority said just after midnight that Maduro had won a third term with 51% of the vote - a result that would extend a quarter-century of socialist rule. Putin stood by Maduro, 61, a ally who has accused the United States and the West of fuelling the war in Ukraine, saying Moscow enjoyed a strategic partnership with the South American state and that Maduro was always welcome in Russia. "Russian-Venezuelan relations have the character of a strategic partnership," Putin said in a message to Maduro, the Kremlin said. "I am confident that your activities at the head of state will continue to contribute to their progressive development in all directions." "This fully meets the interests of our friendly peoples and is in line with building a more just and democratic world order," Putin said. "I would like to confirm our readiness to continue our constructive joint work on topical issues on the bilateral and international agenda." U.S. Secretary of State Antony Blinken said Washington had serious concerns that the results announced by the electoral authority did not reflect the votes of the people. The authority is meant to be an independent body, but the opposition says it acts as an arm of Maduro's government. But Moscow sees Venezuela as a key partner in Latin America, and the two sanctioned states have over the past two decades cooperated in areas such as oil, weapons and military drills. When asked if Russia would deepen cooperation with Venezuela, including in defence, Kremlin spokesman Dmitry Peskov said: "We are developing our relations with Venezuela in all areas, including sensitive ones." "Such cooperation is in the interests of both the Venezuelan people and the Russians, so we will comprehensively develop our relations with Venezuela," Peskov said. Putin ended his message to Maduro: "Remember that you are always a welcome guest on Russian soil." Sign up here. https://www.reuters.com/world/americas/putin-congratulates-venezuelas-maduro-election-win-2024-07-29/

2024-07-29 10:50

CAPE TOWN, July 29 (Reuters) - More equipment is being mobilised to contain an oil spill from the ship "Ultra Galaxy" which ran aground on South Africa's west coast and started to break up in stormy weather, authorities said on Monday. Rough sea swells have battered the Panama-flagged general cargo vessel since it drifted onto a sand bank three weeks ago close to Doring Bay, some 300 km (186 miles) north of Cape Town, after the ship's crew abandoned the vessel when it started taking on water. "Salvage operations are continuing and more equipment is being mobilized to contain the oil spill," said Tebogo Ramatjie, spokesperson for the South African Maritime Safety Authority (SAMSA). The spill took place over the weekend when the ship broke into four sections, with large waves almost seven metres (23 ft) high crashing into the wreck every 15 seconds at one stage, SAMSA said. An oil spill contingency plan was immediately launched and about 125 people from local communities are helping with mopping up operations, Ramatjie added. The salvage team has managed to remove several lube oil drums and about eight tons of marine gas oil from the wreck's fuel tanks. SAMSA has said there were approximately 500 tons of fuel aboard the vessel that need to be removed. Sign up here. https://www.reuters.com/world/africa/south-africa-steps-up-fight-contain-oil-spill-grounded-ship-2024-07-29/