2024-07-21 21:54

July 22 (Reuters) - A look at the day ahead in Asian markets by Noel Randewich. Markets face a new U.S. electoral calculus after U.S. President Joe Biden's abrupt announcement Sunday that he will end his campaign against former President Donald Trump for reelection. Friday's global cyber disruption was a factor in the S&P 500 and Nasdaq posting their worst weeks since April. It was not obvious before exactly what the "Trump trade" was or its overall impact given the focus on Fed policy and other variables. But now investors everywhere will scramble to figure out how to play the sudden uncertainty. Investors may still be licking their wounds as Asian financial markets gear up after a week that saw worries about Taiwan, global trade and semiconductors rattle tech stocks and ripple across other sectors. The health of the world's second largest economy is in focus after a key Communist Party meeting last week did little to stoke optimism, and as expectations solidify that Trump will return to the White House. Pressure for deep changes in how the China's economy functions has risen this year, with consumer and business sentiment near record lows domestically. China's export dominance has been accentuated by solidifying expectations Trump will win the November U.S. presidential election after the former president formally accepted the Republican Party's nomination. Asia financial markets open after a dismal week for global stocks that saw MSCI's global index (.MIWD00000PUS) , opens new tab suffer its worst week since April, in large part over worries about trade disruptions, including additional restrictions by Washington on semiconductor sales to China.While Biden endorsed Vice President Kamala Harris to replace him at the top of the Democrat's ticket, it's not yet clear who the party will select. On politics betting website PredictIt , opens new tab, contracts for Harris being the candidate are priced at 83 cents. Contracts for a Trump victory over Harris at the polls are trading at 61 cents, with a potential $1 payout. Trump has suggested he would impose tariffs of 60% or higher on all Chinese goods, and his choice of populist Ohio Senator J.D. Vance as his running mate provides fresh evidence of what would be a tough U.S. stance on China. Taiwan must rely on itself for defense given the threat it faces from China, Foreign Minister Lin Chia-lung said on Friday, responding to criticism from Trump that sent global chip stocks skidding on Wednesday. In Japan, core inflation accelerated for a second straight month in June, data showed on Friday, extending a more than two-year run above the central bank's 2% target. That kept alive market expectations of a near-term interest rate hike, although most economists expect the Bank of Japan (BOJ) to hold off on raising rates at its July 30-31 policy meeting as soft consumption weighs on a fragile economy. Dollar/yen hardly moved on Friday, wrapping up U.S. trade at 157.50. The BOJ is also wrestling with a weak yen that has crippled households by making food and fuel more expensive. Currency traders will be closely watching the yen after several suspected interventions by the country's central bank to prop it up already this month. Here are key developments that could provide more direction to Asian markets: - China's 1-year loan prime rate (July) - Singapore CPI (June) - Taiwan export orders (June) - New Zealand trade balance (June) Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-2024-07-21/

2024-07-21 21:00

July 21 (Reuters) - The western part of the United States is sweating through another round of record-breaking heat as a wave is forecast to produce triple-digit temperatures in cities from Southern California to northern Idaho through the middle of the week. Some 30 million people are under heat advisories or excessive heat warnings in effect through Wednesday, with some projections topping 110 degrees Fahrenheit (43 Celsius), the National Weather Service (NWS) said on Sunday. Those states include parts of California, Arizona, Nevada, Idaho, Oregon and Washington. Central Oregon and parts of Washington are also under elevated threats of wildfires due to hot and dry weather conditions, the NWS said. Firefighters are battling multiple wildfires in Oregon, including the Lone Rock Fire that has scorched more than 116,000 acres (470 square kilometers) in the northern part of the state, according to the Oregon State Fire Marshal. About 40% has been contained. Thunderstorms moving through the state could make the response more difficult, officials said. The Malheur County Sheriff's Office on Saturday ordered some residents to evacuate due to the Durkee Fire spreading in the eastern part of Oregon. In western Canada, wildfires in Alberta and British Columbia also forced evacuations over the weekend. Research shows fossil fuel-driven climate change is helping to produce dangerous heat waves across the world. Officials are warning of major health risks associated with extreme heat, including heat stroke. "At least for the next four days it looks pretty hot across a good part of the western U.S., and at least in the next two days there's definitely potential for some record high temperatures across parts of interior Pacific Northwest and down towards the desert southwest," NWS meteorologist Bob Oravec said. The northwest part of the U.S. will experience the largest weather anomalies, including much of Washington state where temperatures are 20 degrees higher than usual this time of year, according to Oravec. Major cities like Seattle and Portland will be spared the extreme heat. Temperatures are forecast to climb above 100 F (38 C) and break records in cities like Yakima, Spokane and Mack in Washington. Boise, Idaho could tie a record of 107 F (42 C), Oravec said. Much of the West Coast will see temperatures that are about 10 degrees above normal. Las Vegas could tie a record of 113 F (45°C) on Sunday, while Death Valley National Park in California is expected to rise above 120 F (49 C). "For Monday, the records drop off, like the potential to break records, but it doesn't mean it's going to be any significantly cooler. They're still going to be well above average across the same general areas," Oravec said. On Saturday, records were broken in Baker, Oregon and Alturas, California, Oravec said. Sign up here. https://www.reuters.com/world/us/us-west-prepares-more-days-record-breaking-heat-2024-07-21/

2024-07-21 20:24

FRANKFURT, July 21 (Reuters) - German Chancellor Olaf Scholz said on Sunday that U.S. President Joe Biden's decision to drop his reelection bid deserved recognition, and praised his achievements including strengthening the NATO military alliance. "Joe Biden has achieved a great deal: for his country, for Europe, for the world," Scholz said on X. "Thanks to him, transatlantic cooperation is close, NATO is strong and the USA is a good and reliable partner for us. His decision not to run again deserves recognition." Sign up here. https://www.reuters.com/world/germanys-scholz-says-bidens-decision-drop-reelection-bid-deserves-recognition-2024-07-21/

2024-07-21 17:29

BRASILIA, July 21 (Reuters) - Brazil's Agriculture Ministry said on Sunday it has ruled out three potential new cases of Newcastle disease in poultry after testing additional samples taken from animals in the area close to where a first case was confirmed last week. Newcastle is a viral disease that affects domestic and wild birds, causing respiratory problems, among other symptoms, and can lead to death. Brazil on Thursday detected its first case of Newcastle disease in poultry since 2006. "The negative results are an extremely positive sign regarding the containment of this sanitary event, which is important for a quick resolution of the situation, and reinforces the robustness of Brazil's agricultural defense system," the ministry said in a statement on Sunday. The additional samples were collected on Friday from birds in three properties within the protection zone established in Rio Grande do Sul, where authorities found the first case of the disease in 18 years, when it was detected in subsistence animals. Last week’s confirmation of the case led the government to enforce a voluntary ban on poultry exports to certain countries. Brazilian meat lobby ABPA and the state poultry association ASGAV welcomed the results of the additional testing on Sunday, saying they corroborated the single case found last week was “an isolated” event. Authorities reported the single case on Thursday after the death of around 7,000 birds on a small chicken farm, representing 50% of the flock there. Brazil voluntarily adopted export restrictions on Friday, affecting sales to 44 nations, including China, Argentina, the European Union, Japan and Saudi Arabia. "I am confident that with the agility of our teams, we will return to normal export operations very soon," Agriculture Minister Carlos Favaro said in Sunday's statement. Sign up here. https://www.reuters.com/world/americas/brazil-rules-out-three-potential-new-cases-newcastle-disease-poultry-2024-07-21/

2024-07-21 16:31

Iran-aligned Houthis vow to continue attacking Israel Israel launched first air strikes on Yemen on Saturday Houthi drone killed man in Tel Aviv on Friday Gaza war draws in allies of mutual foes Israel and Iran JERUSALEM/CAIRO, July 21 (Reuters) - Israel said it shot down a missile launched from Yemen on Sunday and the Yemeni Houthi movement said it had fired several missiles at the Israeli city of Eilat after Israel's first public strike against the Iran-aligned group a day earlier. The Houthis have launched missiles and drones at Israel and disrupted global trade through the Red Sea in response to Israel's assault on Gaza, further destabilising the Middle East as war in the Palestinian enclave rages on after nine months. Israel says the Houthis have launched 200 attacks against it since the Gaza war began, many of them intercepted and most of them not deadly. But a rare Houthi drone strike on Friday hit Tel Aviv and killed one person, prompting Israel to announce its first strikes against the group on Saturday. The strikes by warplanes hit near the Yemeni port of Hodeidah and killed six people, local medics said. The Houthi movement, known formally as Ansar Allah, said on Sunday it would continue to attack Israel in response. Houthi spokesperson Mohammed Abdulsalam told Qatar's Al Jazeera TV there would be "no red lines ... all sensitive institutions ... will be a target for us." The Israeli military said its Arrow 3 missile defence system had shot down a surface-to-surface missile projectile launched from Yemen on Sunday before it crossed into Israeli territory. Before the interception, air raid sirens sounded in the Red Sea port city of Eilat, sending residents running for shelter. Sunday's attack prolonged an escalation of violence between Israel and the Houthis that began with the Houthi drone strike that hit the centre of Tel Aviv on Friday. One man was killed and four other people were wounded, officials said. The Israeli warplanes' air raid on Hodeidah on Saturday killed six people and wounded more than 80, medical sources in Yemen told Reuters, describing all as civilians. Images from the scene showed a fiery blaze and dense smoke rising from the site of the strike. A Houthi-run TV channel said the strikes had hit an oil facility and power station. Israeli officials say Hodeidah port has been used by the Houthis to receive weapons shipments from Iran. PROXY BATTLE The exchanges are part of a spillover from the Gaza war that has drawn in regional and world powers. Iran-aligned groups including the Houthis have fired rockets and missiles at Israel saying they are doing so in support of Palestinians and the Islamist militant group Hamas that governs Gaza. The United States and its allies back Israel and provide weapons to it. The war began on Oct. 7 after a Hamas-led attack on southern Israel in which about 1,200 people were killed and over 250 taken hostage back to Gaza, according to Israeli authorities. Israel has since bombed and invaded Gaza as part of what it says is a campaign to eliminate Hamas, killing nearly 39,000 people, according to health officials in the enclave. The Houthis, who control much of the north of Yemen and other large population centres, have previously claimed targeting Eilat and other attacks directed at Israel, saying they are acting in retaliation for Israel's war on Gaza. The group has also attacked Red Sea shipping routes for months. Hamas' allies include Iran-backed groups such as the Houthis, Hezbollah in Lebanon and Iraqi paramilitaries. The Houthi movement consists primarily of members a minority Shi'ite Muslim group in Yemen and has controlled the country's capital, Sanaa, for years. Sign up here. https://www.reuters.com/world/middle-east/israel-says-it-intercepts-missile-fired-yemen-houthis-say-they-targeted-eilat-2024-07-21/

2024-07-21 13:43

RIYADH, July 21 (Reuters) - Saudi Arabia's mining minister will visit Brazil and Chile over the coming two weeks, the ministry said on Sunday, as the world's leading oil exporter seeks to expand its international presence in mining. In Brazil, talks will cover mining, food processing, and aviation, while in Chile the focus is on lithium, needed for electric vehicle batteries. "This aligns with the Kingdom's direction towards expanding the production of EVs," a Saudi government statement said. Saudi Minister of Industry and Mineral Resources Bandar Alkhorayaf will land in Brazil on Monday and leave for Chile, the world's second largest producer of lithium, next Sunday. First in Brazil, Alkhorayaf will meet agricultural and industrial groups, including Minerva Foods, JBS, and BRF SA, as well as the Brazilian Mining Association (IBRAM) and mining company Vale (VALE3.SA) , opens new tab. In Chile, Alkhorayaf will meet his counterpart Aurora Williams, as well as mining companies Antofagasta, and Codelco, a state-run company tasked with bringing the Chilean government into the lithium industry. Codelco has been seeking private sector partners to launch lithium projects. A potential candidate is Saudi Arabia's Almar Water Solutions, whose chief executive said in June the company sought a partnership with Codelco in its planned Maricunga lithium mining project. Long dependent on oil, Saudi Arabia hopes to use lithium to help diversify its economy and turn itself into a hub for EV manufacturing. The diversification strategy includes plans to expand into international mining to secure access to minerals including copper, cobalt, and nickel as well as lithium. Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF), and the Kingdom's Mining Company, known as Ma'aden, which is 67% owned by the PIF, formed a joint venture called Manara Minerals to invest in mining assets abroad. Brazil's minister for energy Alexandre Silveira said last month the PIF plans to invest $15 billion in Brazil in areas such as green hydrogren, infrastructure, and renewable energy. Sign up here. https://www.reuters.com/markets/commodities/saudi-arabia-visit-brazil-lithium-power-chile-seeks-diversify-2024-07-21/