2024-07-17 21:48
July 18 (Reuters) - A look at the day ahead in Asian markets. Asian markets are set to open in the red on Thursday following Wednesday's global selloff, as the prospect of more severe U.S. trade curbs puts the frighteners on investors and squeezes the tech sector in particular. Chipmaker and tech stocks in Asia face a double whammy as investors weigh a report that the United States may restrict imports of technology to China, and comments from Republican presidential candidate Donald Trump that production hub Taiwan should pay the U.S. for its defense. The S&P 500 on Wednesday registered its biggest fall since April, the tech-heavy Nasdaq had its biggest falls since December 2022, while the Philadelphia semiconductor index lost nearly 7%, its worst day since March 2020. The Hang Seng tech index and Taiwan's semiconductor bellwether TSMC will be under fire on Thursday. Thursday's regional calendar sees the release of trade figures from Japan and Malaysia, and labor market data from Australia and Hong Kong. Investors in China await policy news from a key leadership gathering in Beijing that is expected to end on Thursday. But global sentiment is likely to drive local markets and the rotation out of tech stocks into other sectors - the Dow hit another record high - is unlikely to prevent further losses. In currencies, the yen is on the rise after suspected intervention from Japan pushed it to a one-month high 156.00 per dollar on Wednesday. It looks like Tokyo's third bout of intervention in a week, in which time the dollar has tumbled six 'big figures' from 162.00 yen. Japan's top currency diplomat Masato Kanda said on Wednesday he would have to respond if speculators cause "excessive" moves in the currency market and that there was no limit to how often authorities could intervene, Kyodo News reported. Daily money market indicators from the Bank of Japan can indicate the scale of any potential action, but official confirmation on intervention and amounts spent only come at the end of every month. The dollar is on the defensive more broadly, hitting a four-month low against a basket of major currencies with traders pointing to Trump's comments in a Bloomberg interview on the currency's recent strength as a factor behind its slide. Bond yields are lower too after top Fed officials said they are they 'closer' to cutting interest rates, and the 10-year Treasury yield hit at a four-month low on Wednesday. Another upbeat development for investors on Wednesday saw the Atlanta Fed's GDPNow tracking estimate for second quarter growth rise again, to 2.7%. It was 2.0% last week. None of that will matter much in the near term, however, if the tech-fueled selloff across U.S. and global equity markets persists. Investors in Asia should buckle up for a rocky ride on Thursday. Here are key developments that could provide more direction to markets on Thursday: - Japan trade (June) - Australia unemployment (June) - ECB policy meeting Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-graphic-pix-2024-07-17/
2024-07-17 21:47
July 17 (Reuters) - Exxon Mobil's (XOM.N) , opens new tab 251,800-barrel-per-day refinery in Joliet, Illinois, is likely to have most units offline through this week, industry monitor IIR said on Wednesday. A severe storm passed through Joliet earlier this week, leaving thousands without power. The power outage took 16 units offline on Monday night, according to data from IIR. Among them are a 127,000-barrels-per-calendar-day (bcd) vacuum distillation unit and a 98,000-bcd fluid catalytic cracker unit. Four hydrotreater units and three sulfur recovery units also went down during the outage. The units are expected to be down for a week with plans to restart over the upcoming weekend, according to IIR. Exxon did not immediately respond to a request for comment. The outage sparked panic buying in the Chicago wholesale market, pushing prices higher for refined products in the region. Chicago diesel traded at a discount of 2.50 cents against the ultra-low sulfur diesel futures benchmark on Wednesday, 15.25 cents higher than Tuesday. Sign up here. https://www.reuters.com/business/energy/exxons-joliet-refinery-units-down-week-plans-restart-late-july-iir-says-2024-07-17/
2024-07-17 21:10
July 17 (Reuters) - Beyond Meat (BYND.O) , opens new tab has engaged with a group of bondholders to initiate discussions about a balance-sheet restructuring, the Wall Street Journal reported on Wednesday, sending its shares down 13% in extended trading. The group of bondholders, which has interests in Beyond Meat's $1.1 billion of convertible notes, is working with law firm Akin Gump Strauss Hauer & Feld on the restructuring, the WSJ reported, citing people familiar with the matter. The faux meat maker's reduced liquidity is attributed to its cash burn over the past several quarters. Beyond Meat and the law firm did not immediately respond to Reuters' requests for comment. Demand for Beyond Meat's products - including burger patty, sausages and ground beef - has weakened as customers such as McDonald's (MCD.N) , opens new tab and Yum Brands (YUM.N) , opens new tab saw sluggish consumer demand owing to sticky inflation. For the first quarter, Beyond Meat posted revenue of $75.6 million, compared with analysts' average estimate of $75.2 million. Earlier this year, the company said it would increase prices on some of its product lines from the second quarter in a bid to restore margins, while also looking to "steeply reduce" costs. Sign up here. https://www.reuters.com/business/retail-consumer/beyond-meat-engages-with-bondholders-discuss-balance-sheet-restructuring-wsj-2024-07-17/
2024-07-17 21:07
July 17 (Reuters) - Production capacity of sustainable aviation fuel in the United States could jump by 1400% in 2024 if all announced capacity additions come on line, the U.S. Energy Information Administration said on Wednesday. WHY IT'S IMPORTANT The EIA anticipates domestic production of biofuels will increase by about 50% in 2024, led by rising SAF production. The White House aims to meet all of the U.S.'s aviation fuel demand with SAF by 2050 and to supply at least 3 billion gallons of SAF annually by 2030. In 2023, the EIA reported that around 1.6 million barrels per day (bpd) of jet fuel was consumed in the country. SAF, an alternative to petroleum jet fuel, is produced from agricultural and waste feedstocks and has seen increased investments due to benefits from the U.S. Environmental Protection Agency's Renewable Fuel Standard. BY THE NUMBERS The EIA projects that SAF output will rise from 2,000 bpd to nearly 30,000 bpd in 2024. Phillips 66's Rodeo facility in California reached its renewable fuel production target of 50,000 bpd in June, of which 10,000 bpd is SAF. Valero's (VLO.N) , opens new tab Diamond Green project, in partnership with Darling Ingredients (DAR.N) , opens new tab, at its Port Arthur, Texas refinery is expected to come online in the fourth quarter of this year and produce 15,000 bpd of SAF by the end of 2024. Sign up here. https://www.reuters.com/business/aerospace-defense/sustainable-aviation-fuel-capacity-domestically-rise-fourteen-fold-2024-us-eia-2024-07-17/
2024-07-17 21:00
NEW YORK, July 17 (Reuters) - A storm powerful enough to knock a B-52 bomber off a platform and tear the roof off a 19th century church ripped through central New York state, killing a man who went outside to check on his antique car. Governor Kathy Hochul on Wednesday surveyed the destruction from Tuesday's storm and declared a state of emergency for the entire state, which remained in effect with damaging wind and heavy rain expected in many parts of New York on Wednesday night. One of the hardest hit areas was the Mohawk Valley. A confirmed tornado rolled through the city of Rome, destroying four buildings and causing major structural damage to 22 other structures, said Hochul at a press conference in Rome. The storm was so powerful that it knocked a 185,000-pound (83,000-kg) B-52 bomber jet off its platform at the Griffiss Air Force Base, according to Hochul. "You cannot imagine the impact of seeing from the sky how vast the destruction is. When you see entire swaths of trees just collapsed like they were toothpicks, and then houses - the roofs gone," said Hochul. She spoke in front of St. Mary's Church, built in 1862 according to the church's website, with much of its roof torn off by the storm. At least three other reported tornadoes touched down in nearby Hamilton County and Warren County, according to NBC5 meteorologists. The National Weather Service has not yet confirmed them as tornadoes. Robert Popple, 82, from the village of Canastota, west of Rome, was identified as the person who died during the storm. A neighbor reported that he went outside to check on his antique car when he was swept away, Hochul said. Roughly 300,000 customers across New York State lost power during the height of the storm and 38,000 were still without electricity. Nearly half of those still without power are in Oneida County. Hochul said that an unusual number of weather events have occurred in her three years as governor, including the current heat wave, recent flash flooding in Lewis County and a record-breaking 42 tornado warnings issued across New York last week, seven of which were confirmed. She also warned New York residents to expect compromised air quality in the coming week due to Canadian wildfires, a reminder of last June's wildfires that gave Syracuse and New York City the worst air quality in the world on some days. "These extreme weather events are no longer the abnormal. They are the new normal," she said. Sign up here. https://www.reuters.com/business/environment/new-york-storm-topples-b-52-bomber-tears-roof-off-church-2024-07-17/
2024-07-17 20:28
WASHINGTON, July 17 (Reuters) - The National Transportation Safety Board said on Wednesday it had scheduled 20 hours of hearings over two days on the January Alaska Airlines (ALK.N) , opens new tab Boeing 737 MAX 9 in-flight door plug emergency and would review oversight by U.S. safety regulators. The NTSB said on its website the Aug. 6-7 hearings are set to last 10 hours each day and would focus on Boeing 737 MAX manufacturing and inspections, FAA oversight of Boeing (BA.N) , opens new tab and Spirit AeroSystems (SPR.N) , opens new tab and events surrounding the removal of the door plug in 2023. The hearing would also review safety management and quality management systems. Boeing has faced mounting questions after a door panel detached during a Jan. 5 flight on a new Alaska Airlines 737 MAX 9, forcing pilots to make an emergency landing while passengers were exposed to a gaping hole 16,000 feet above the ground. The FAA had grounded all MAX 9 airplanes for several weeks and required safety checks before they could resume flights. The agency also has barred Boeing from expanding MAX production as the agency reviews the planemaker's practices. The NTSB said previously that four key bolts were missing from the door plug that blew off the Alaska Airlines flight at 16,000 feet. The Justice Department has opened a criminal investigation into the incident. NTSB Chair Jennifer Homendy told Reuters in April she expected witnesses from Alaska, Boeing and Spirit would provide testimony. The FAA and Boeing referred questions about the hearing to the NTSB. Last month, the NTSB said Boeing could lose its status as a party to the probe after it violated rules by providing non-public information to media and speculating about possible causes. The NTSB said Boeing would no longer see information produced during its probe and unlike other parties, Boeing would not be allowed to ask questions of other participants at the August hearing. Elizabeth Lund, Boeing's senior vice president of quality, who had made remarks last month that violated the rules is expected to appear at the hearing, the NTSB said last month. The NTSB said last month it would subpoena Boeing witnesses to appear at the hearing. The NTSB said Wednesday the full investigation will take approximately one year to 18 months from the accident to complete. Sign up here. https://www.reuters.com/business/aerospace-defense/ntsb-probe-faa-oversight-boeing-aug-6-7-investigating-hearing-2024-07-17/
