2024-07-23 07:17
July 23 (Reuters) - Energean (ENOG.L) , opens new tab will invest about $1.2 billion to develop the Katlan project off Israel, the company said on Tuesday as it announced its final investment decision, with gas output expected to commence in the first half of 2027. Katlan, discovered by global oil and gas producer Energean in 2022, is a group of formations located near two projects off Israel's Mediterranean coast - Karish and Tanin - also owned by Energean. Initial gas production is planned for first-half of 2027 with capital expenditure of about $1.2 billion to develop the project, upgrade and drill wells, the company said. The field contains , opens new tab 1.10 trillion cubic feet of proven and probable gas reserves, according to the company's website. Energean said production will underpin its existing gas sales agreements and will target international markets. The London-headquartered explorer aims to double its production in the coming years, primarily through development of new prospects in Israel including the Katlan field. Developing Katlan "will provide additional energy security and drive sustainable development, both in Israel and the broader region," Energean CEO Mathios Rigas said in a statement. , opens new tab The company said Israel's Ministry of Energy and Infrastructure had granted a 30-year lease for the Katlan area including a 20-year extension option. Sign up here. https://www.reuters.com/business/energy/energean-invest-12-bln-develop-israel-katlan-gas-project-2024-07-23/
2024-07-23 07:17
BANGKOK, July 23 (Reuters) - Thailand will work towards legislating marijuana for medical use, a deputy prime minister said Tuesday, signalling a U-turn on plans to re-criminalise the plant and another change in the government's hazy position on cannabis. Thailand in 2022 became one of the first countries in Asia to decriminalise marijuana, doing so without a law to govern it or clear regulations in place to prevent its recreational usage. The move, however, prompted an explosion of recreational use, cannabis cafes and retailers, and public concern about its abuse. Deputy premier Anutin Charnvirakul, whose party was instrumental in pushing for the liberalisation of the plant, said Prime Minister Srettha Thavisin had now agreed that legislation was the appropriate step to take. "I thank the prime minister for considering this matter and deciding on issuing an act," Anutin said. The government has maintained recreational use of cannabis was not allowed and Srettha, who belongs to another party, had said he would re-criminalise it, with an exception for medical use and research. It was not immediately clear whether steps would be taken to crack down on recreational cannabis use, as Srettha has advocated. Thailand has seen rapid growth of a domestic retail sector for marijuana, with tens of thousands of shops and businesses springing in the past two years in an industry projected to be worth up to $1.2 billion by 2025. Anutin's Bhumjaithai Party, the second biggest in the ruling coalition, has advocated for marijuana for health and economic purposes, but officially not for recreational use, and has argued against re-criminalising it. Sign up here. https://www.reuters.com/world/asia-pacific/thailand-legislate-marijuana-medical-use-deputy-pm-says-2024-07-23/
2024-07-23 07:13
MUMBAI, July 23 (Reuters) - The Indian rupee dropped to a record low against the U.S. dollar on Tuesday, pressured by the drop in local equities after the government proposed raising the tax rate on capital gains. The rupee declined to 83.69 to the dollar, inching past the previous lifetime low of 83.6775, and compared with 83.6275 before the budget announcement. Sign up here. https://www.reuters.com/markets/currencies/indian-rupee-declines-record-low-after-government-raises-tax-capital-gains-2024-07-23/
2024-07-23 06:58
SINGAPORE, July 23 (Reuters) - Singapore's central bank is widely expected to keep monetary policy unchanged this week and hold off easing settings amid lingering risks to the inflation outlook caused by geopolitical tensions. Of the 10 analysts polled by Reuters, nine expect the Monetary Authority of Singapore (MAS) to hold off making changes to its policy at the scheduled review on Friday. "The MAS is likely in no rush to ease policy setting, with core inflation still above its soft 2% target," said Lloyd Chan, senior currency analyst at MUFG global market research. "We think core inflation will only return to the 2% level in early 2025, while there is upside risk to inflation from rising global freight costs and geopolitical tensions. Moreover, Singapore’s economic growth picked up in Q2, while leading indicators suggest growth momentum will improve in the coming months." Inflation in the Asian financial hub remains sticky. While it cooled from a peak of 5.5% in early 2023, it remained at 3.1% year-on-year over April to May and dropped to 2.9% in June. MAS managing director Chia Der Jiun said last week that he expects core inflation to stay on its disinflation path and ease more significantly in the fourth quarter. "It is forecast to reach around 2% in 2025, barring further shocks," said Chia at the release of MAS annual report. He also expects Singapore's full-year economic growth to come in closer to its potential rate of 2% to 3%, in the upper half of the trade ministry's 1% to 3% forecast range. Central banks globally are starting to cut rates slowly. The European Central Bank left rates steady this month, after delivering a first cut in June, while the Federal Reserve is tipped to deliver its first cut in September. Instead of using interest rates, Singapore manages monetary policy by letting the local dollar rise or fall against currencies of its main trading partners within an undisclosed band, known as the Singapore dollar nominal effective exchange rate, or S$NEER. It adjusts policy via three levers: the slope, mid-point and width of the policy band. The outlier expecting a loosening of monetary policy this week was DBS, which sees scope for the MAS to slightly ease the appreciation pace of the band in the second half and said an early move in July also couldn't be ruled out. However, Barclays said the risk of a tightening via an increase in the slope was more likely than an easing, but said the overall probability of an adjustment was low. Singapore is often seen as a bellwether for global growth as its international trade dwarfs its domestic economy. Growth slowed to 1.1% in 2023 from 3.8% in 2022. Its preliminary GDP rose 2.9% on a year-on-year basis in the second quarter of 2024, stronger than expected and leading economists to upgrade their forecasts. The MAS has not changed policy since a tightening in October 2022, which was the fifth tightening in a row, as broader concerns about growth kept authorities sidelined. MAS' Chia said last week that "if MAS had not tightened monetary policy, core inflation would have reached 7% and headline 8%". Core inflation peaked at 5.4% in the first quarter of 2023 and headline inflation at 7.3% in the third quarter of 2022. MAS this year began making policy announcements every quarter instead of semiannually. Sign up here. https://www.reuters.com/markets/asia/singapore-seen-keeping-monetary-policy-unchanged-amid-inflation-risks-2024-07-23/
2024-07-23 06:58
Important for smaller firms' wage hikes to broaden, govt spokesman says Govt may compile fresh fiscal package later this year Calls for yen moves to reflect fundamentals No need to tweak govt-BOJ joint pact on ending deflation TOKYO, July 23 (Reuters) - Broadening pay hikes among smaller firms is crucial, said Japan's top government spokesperson, Yoshimasa Hayashi, underscoring the administration's drive to achieve sustained wage gains. Such gains have been a policy priority for Prime Minister Fumio Kishida's government, in its effort to prevent rising living costs from hurting consumption and derailing a fragile economic recovery. Hayashi's remark came in a Reuters NEXT Newsmaker interview ahead of the Bank of Japan's policy meeting on July 30 and 31, when the board is likely to discuss whether conditions allow it to lift interest rates from current levels near zero. It was crucial for Japan to achieve a "positive" cycle in which firms can pass on higher costs through price hikes, so that they can earn enough to keep raising pay, Hayashi added. "We expect the Bank of Japan to decide specific monetary policy with an eye on what's happening in the economy, and through close dialogue with markets," Hayashi, who is the chief cabinet secretary, said on Friday. "What's important is for a positive cycle to spread a bit more among smaller firms," he said, when asked about the expectations of some market players that the central bank could raise interest rates this month. The government may compile a fresh fiscal stimulus package later this year to cushion the blow to households if inflation rises further, Hayashi added, with the size of spending to hinge on economic conditions in coming months. In a shift away from a decade-long programme of radical stimulus, the Bank of Japan (BOJ) exited negative interest rates and bond yield control in March. Markets are warming to the idea of a rate hike at this month's policy meeting. BOJ Governor Kazuo Ueda has signalled the bank's readiness to hike rates if there is sufficient evidence that wage hikes will broaden, and keep inflation durably around its 2% target. While big firms have offered bumper pay hikes in annual wage negotiations this year, it is unclear whether their smaller counterparts can keep up. Asked about recent yen declines and their impact on the economy, Hayashi said it was desirable for currency rates to move in a way that reflected fundamentals, but declined to comment on whether recent levels were out of line with them. The yen has fallen more than 10% against the dollar this year to languish around 38-year lows, weighed down by the wide difference in interest rates between the U.S. and Japan. Tokyo is suspected to have stepped into the market this month to prop up the yen, which has hovered around 157.50 to the dollar , after touching a six-week high of 155.375 last week in the wake of suspected intervention. Hayashi said he saw no immediate need to revise a joint statement between the government and the BOJ in 2013 that commits the central bank to meeting its inflation target of 2% "at the earliest date possible". The joint statement served as the backbone of former BOJ governor Haruhiko Kuroda's radical monetary stimulus and justification for keeping Japan's interest rates ultra-low. Critics have said its focus on the need to beat deflation has become outdated at a time when Japan has faced inflation exceeding the BOJ's 2% price target for more than two years. Sign up here. https://www.reuters.com/markets/asia/japans-chief-cabinet-secretary-calls-broad-based-wage-hikes-2024-07-23/
2024-07-23 06:48
MELBOURNE, July 23 (Reuters) - The first hearing date has been set in a class action against miner Rio Tinto (RIO.AX) , opens new tab for historical environmental and social damage caused by the Bougainville copper mine in Papua New Guinea that it operated in the 1970s and 1980s, lawyers said. The first court hearing will take place in Papua New Guinea's capital Port Moresby on Oct. 10, according to lawyers representing the claimants. "We are committed to advancing the action against Rio Tinto and BCL on behalf of the class," said Matthew Mennilli, partner at Sydney-based law firm Morris Mennilli in a statement. "We hope to empower claimants after their voices were unheard and ignored for so many years." BCL, or Bougainville Copper Ltd (BOC.AX) , opens new tab, ran the Panguna mine in which Rio Tinto held a majority stake. The mine ceased operations in 1989 when related disputes spiralled into a civil war lasting for a decade. A Rio Tinto spokesperson confirmed that it had been served with a class action and that it was reviewing the details of the claim. "As this is an ongoing legal matter, we are unable to comment further at this time," he said. Rio Tinto in 2016 transferred its 53.8% stake in BCL to the Autonomous Bougainville government and the Papua New Guinea government for no amount. The miner in 2022 began work to assess the mine's legacy, hiring an independent group to assess the impact and consult on next steps. It is due to report back to Rio this year. Class actions are increasingly being used by affected populations as a way to access higher compensation from resources companies for damaging events. More than 720,000 Brazilians, including 46 local governments, are suing BHP (BHP.AX) , opens new tab and Vale (VALE3.SA) , opens new tab in a potential 36 billion pound ($46.5 billion) lawsuit over the 2015 collapse of the Mariana dam. The class action against Rio Tinto is much smaller. It is made up of a majority of villagers in the affected region of Bougainville. A further 1,500 people have joined the class action since it was filed with 3,000 claimants in May. They are seeking compensation for "historical mismanagement of the Panguna Copper Mine, which caused large scale environmental and social harm," according to the statement. ($1 = 0.7738 pounds) Sign up here. https://www.reuters.com/markets/commodities/rio-tinto-class-action-over-bougainville-mine-damage-set-october-hearing-2024-07-23/
