2024-07-16 10:48

KYIV, July 16 (Reuters) - On some evenings, Ukrainian mother Margaryta Zakharchuk wanders around her neighbourhood in the sweltering heat waiting for the electricity to come back on so she can take the lift to her 12th-floor apartment. "We walk around outside until 10 o'clock so we don't need to climb up with two kids," she said. Zakharchuk, 43, is among the millions of Ukrainians struggling amid a record heat wave compounded by regular power cuts that make household appliances like air conditioning units and refrigerators useless. Regular Russian air strikes have ravaged the country's energy system, leading to hours-long rolling blackouts that have forced residents and businesses to adapt in the extreme heat. The Central Geophysical Observatory said on Tuesday it had clocked a record-high 93.5 degrees Fahrenheit (34.2 degrees Celsius) in Kyiv for July 15. Temperatures on Tuesday were expected to reach even higher. Zakharchuk, for instance, is limited in what she can cook for her family of four because food spoils quicker, she said. Like many other Ukrainians, her daily life is divided into blocks of time when electricity is available. "The light comes on and you begin doing everything: washing, ironing, cooking, charging all your devices," she said while splashing down her one-year-old daughter Vasilisa in the sink. Zakharchuk added that her family had considered leaving town, but that options to do so were unavailable. At a nearby corner store, shopkeeper Vika said she has begun ordering fewer dairy products like milk and butter. Prices have also gone up to cover the cost of running the generator. "These are all expenses," said the 37-year-old, who said power at her store is out for around six to eight hours per day. The extreme heat is also taking a broader toll on Ukraine's economy, with state weather forecasters saying on Tuesday the harvest of late crops could decline by up to 30% in central, southern and eastern regions. Grid operator Ukrenergo announced on Tuesday new emergency electricity shutdowns for some consumers in seven regions - but not including the capital - due to the heatwave following a failure of power equipment. "Last night there was an equipment failure at one of the energy facilities. The energy deficit in the system increased," it said on the Telegram messaging app. The energy ministry has urged consumers to conserve energy and minimise the use of powerful electrical appliances to preserve the stability of the power grid. Standing outside her building holding her infant, Zakharchuk lamented that hauling a pram up to her apartment was not an option. "Now it's a long road up back home." Sign up here. https://www.reuters.com/world/europe/ukrainians-struggle-with-scorching-heat-amid-power-crisis-2024-07-16/

2024-07-16 10:46

DUBAI, July 16 (Reuters) - The 16-strong crew of a Comoros-flagged oil tanker that capsized off Oman are still missing, the country's maritime security centre said on Tuesday, a day after the sinking was reported. The crew of "Prestige Falcon" comprised 13 Indian nationals and three Sri Lankans, the Omani centre said in a post on the social media platform X. Separately, the centre told Reuters that the vessel remains "submerged, inverted". It did not confirm whether the vessel had stabilised or whether oil or oil products were leaking into the sea. Shipping data by LSEG had shown the tanker was heading to the Yemeni port of Aden and capsized off Oman's major industrial port of Duqm. The vessel is a 117-metre long oil products tanker built in 2007, the shipping data showed. Such small tankers are typically used for short coastal voyages. Omani authorities conducted a search-and-rescue operation at the scene in coordination with maritime authorities, Oman's state news agency reported late on Monday. The port of Duqm is located on Oman's southwest coast, close to the sultanate's major oil and gas mining projects, including a major oil refinery that forms part of Duqm's vast industrial zone, Oman's biggest single economic project. Sign up here. https://www.reuters.com/world/middle-east/oman-authorities-name-capsized-oil-tanker-off-industrial-port-prestige-falcon-2024-07-16/

2024-07-16 10:41

LONDON, July 16 (Reuters) - The pound held steady on Tuesday just shy of a one year high on the dollar hit the previous day, as traders caught their breath ahead of a raft of major political and economic data due later in the week. British inflation data for June is due Wednesday, and will guide expectations of whether the Bank of England will cut rates at its August meeting, or hold off until later in the year. Also on Wednesday King Charles will announce the full legislative agenda of the new government of British Prime Minister Keir Starmer. Then jobs data, also important for the BoE, is due on Thursday. "The UK is the market that is the most interesting this week, by some margin. You’ve got all the data, you’ve got the King's Speech and the thing that makes it interesting is that (BoE expectations are) priced more or less 50/50, so the data could certainly have an impact one way or the other," said Colin Asher senior economist at Mizuho. Investors were nervous about placing overly large bets ahead of that data and sterling was last sitting steady against the dollar at $1.2969 , just off the previous day's one-year top of $1.2995. It was also steady on the euro, with one euro at 84.04 pence, having dropped to a near two year low of 83.91 pence on Monday. Reasonably upbeat economic British data and relatively hawkish policy makers have been supporting the pound, while signs of slowing inflation in the U.S. brings down the dollar, and political uncertainty in France has weighed on the euro. The BoE in June voted 7-2 to keep rates on hold but policy minutes said the decision had been "finely balanced" for some rate setters. Sign up here. https://www.reuters.com/markets/currencies/sterling-steady-near-recent-highs-day-ahead-key-inflation-data-2024-07-16/

2024-07-16 10:13

MUMBAI, July 16 (Reuters) - The Indian rupee ended little changed on Tuesday, as dollar sales from exporters and mild inflows helped curb the pressure from weakness in most of its Asian peers, including the Chinese yuan. The rupee ended at 83.5825 against the U.S. dollar, compared to its previous close of 83.5925. The currency hovered in a tight band between 83.57 and 83.6025 through the session. Asian currencies were mostly weaker, with the offshore Chinese yuan down 0.1%. The dollar index was little changed at 104.3, while U.S. bond yields declined. The rupee is expected to see "gradual depreciation," and is likely to track movement in the yuan, said Dilip Parmar, a foreign exchange research analyst at HDFC Securities. Meanwhile, dollar-rupee forward premiums rose, with the 1-year implied yield up 4 basis points at 1.73%, its highest since March 12, lifted by the decline in near-maturity US bond yields. The 1-year Treasury yield was last quoted down 3 basis points (bps) at 4.81%, its lowest since February. Heightened odds of the Federal Reserve starting to cut rates in September have pressured near-maturity U.S. yields, even as rising prospects of a second presidential term for Donald Trump support yields at the longer end of the curve. Interest rate futures have fully priced in a rate cut in September, and are indicating a total of 69 basis points of cuts in 2024. But a lack of arbitrage opportunities and narrow price action has driven down banks' activity in the dollar-rupee forwards, with volumes dropping by 36% in the April-June period compared to the previous quarter. Investors now await the release of U.S retail sales data later in the day alongside remarks from a Fed official for cues on the interest rate trajectory. Sign up here. https://www.reuters.com/markets/currencies/rupee-ends-flat-mild-inflows-exporter-dollar-offers-counter-weak-asian-peers-2024-07-16/

2024-07-16 10:01

A look at the day ahead in U.S. and global markets from Mike Dolan After a jarring Monday that spurred a wave of U.S. election trades, world markets zeroed in Federal Reserve easing hopes, China's economic stumble and the unfolding earnings season. The appearance former President Donald Trump at the Republican party convention after Saturday's failed attempt on his life underscored speculation the attempted assassination now boosts his chance of re-election in November. And for longer-term investors, Trump's pick of like-minded Ohio Senator J.D. Vance as his running mate also focuses minds on the political landscape through 2028. "The decision is crucial because one-third of US presidents throughout American history have previously occupied the position of vice president," said UBS Global Wealth Management's Tom McLoughlin, adding this "effectively anoints" Trump's successor. With betting markets putting Trump's chances of a return to the White House at more than 70%, Monday's reaction sent the 2-to-30 year Treasury yield curve into positive territory for the first time since January, lifted Bitcoin and Trump-related stocks sharply, underlined a rotation to small cap stocks (.RUT) , opens new tab and knocked Mexico's peso . Some of those moves cooled a bit ahead of Tuesday's bell, Bitcoin slipped back under $63,000 and the 2-to-30 year yield curve ebbed into negative territory again as attention switches to mounting Fed easing hopes. With last week's renewed disinflation hopes as a backdrop, Fed chair Jerome Powell's latest comments in Washington on Monday only encouraged that thinking. "We didn't gain any additional confidence in the first quarter, but the three (inflation) readings in the second quarter, including the one from last week, do add somewhat to confidence," he told the Economic Club of Washington. Futures markets are now fully priced for a first Fed rate cut in September and upped full-year easing bets to 68 basis points and 110bp by March. Two-year Treasury yields fell to their lowest in more than four months at 4.41% early on Tuesday ahead of the June retail sales update, while 10-year yields also fell back below 4.2%. With big bank earnings streaming in, S&P500 futures held steady first thing - although stock market attention on Monday was once again on the outperformance of small caps. Even though the S&P500 eked out another small gain, the Russell 2000 gained almost 2% and is now up more than 7% in just five sessions. Stock market volatility is starting to creep higher, however, with the VIX 'fear index' (.VIX) , opens new tab nudging up to its highest in three weeks. Asia stocks were mostly higher overnight, with the exception of another sharp drop in Hong Kong (.HSI) , opens new tab as the Chinese Communist Party's 'Third Plenum' is watched closely for major economic reforms. Details will likely come out on Thursday. China's latest series of economic misses and the Trump speculation - not least his sweeping trade tariff pledges - created a more mixed picture elsewhere. China's yuan and Japan's yen weakened against the dollar again despite Fed easing bets. And European stocks (.STOXXE) , opens new tab underperformed too - hit by a variety of concerns from Chinese luxury goods demand to tariff concerns. The European Central Bank meets on Thursday, but is not expected to cut rates again until September and the euro was firmer. Germany's July ZEW sentiment indicator came in below forecast. Shares in Hugo Boss (BOSSn.DE) , opens new tab plunged nearly 9% on Tuesday after the German fashion house cut its annual sales forecast over weakening global consumer demand especially in markets such as China. Sales at Cartier-owner Richemont (CFR.S) , opens new tab were almost flat in the three months through June, with a slump in Chinese demand pushing the overall result slightly below expectations. Back on Wall Street, Goldman Sachs' (GS.N) , opens new tab second-quarter profit more than doubled, beating analyst estimates on solid debt underwriting and fixed-income trading, and the broker's shares advanced almost 3% on Monday. Bank of America and Morgan Stanley are among the big financial names on the earnings diary later today. Key developments that should provide more direction to U.S. markets later on Tuesday: * U.S. June retail sales, June import/export prices, July NAHB housing index, May business/retail inventories; Canada June consumer price index, June housing starts * US corporate earnings: Bank of America, Morgan Stanley, State Street, PNC, Progressive, Unitedhealth, Omnicom, JB Hunt * Federal Reserve Board Governor Adriana Kugler speaks * ECOFIN European Union finance ministers meet in Brussels to review seven member states' excessive deficits: Belgium, France, Italy, Hungary, Malta, Poland and Slovakia; European Central Bank board member Luis de Guindos participates * U.S. Republican party convention * US Treasury auctions 3-, 6-month bills Sign up here. https://www.reuters.com/markets/us/global-markets-view-usa-2024-07-16/

2024-07-16 09:20

FRANKFURT, July 16 (Reuters) - Euro zone households are applying for loans in growing numbers for the first time in two years as they grow more optimistic about the economy and interest rates fall, a European Central Bank survey showed on Tuesday. The ECB began cutting interest rates in June but borrowing costs on financial markets started falling well before then, slowly making credit more attractive. A net 16% of lenders polled in the ECB's Bank Lending Survey (BLS) reported a surge in demand for loans from households in the three months to June, the first such increase since 2022, and respondents expect this trend to continue this quarter. "Improving housing market prospects, cited primarily by German banks, were the main driver of the increase in housing loan demand," the ECB said. "The general level of interest rates and consumer confidence had a smaller positive impact." Similarly, banks eased conditions on mortgages for a second consecutive quarter due to stronger competition, although they tightened access to consumer credit because of growing perceived risk. ING's economist Bert Colijn said the survey provided "small positive notes" but still left "much room" for the ECB to keep cutting rates. The central bank of the 20 countries that share the euro is expected to keep rates on hold this week but two more cuts are priced in by the end of this year. On the flipside, conditions on corporate loans continued to tighten, even if only modestly, and demand for them declined. The tightening was "relatively large" for companies in commercial real estate (CRE), in line with the ECB's own policy as the euro zone's bank supervisor. "In the second half of 2024 euro area banks expect a net tightening in lending conditions (for firms), combined with a moderate net increase in loan demand in most economic sectors except construction and CRE," the ECB said. The ECB also asked banks about their lending to companies based on their climate footprint, finding that a quarter of banks had eased access to credit for so called "green" companies and 44% had tightened it for "brown" ones over the past year. Sign up here. https://www.reuters.com/markets/europe/euro-zone-households-seek-loans-again-after-two-years-ecb-2024-07-16/