2024-07-03 11:23

KYIV, July 3 (Reuters) - Ukraine's state energy company Naftogaz increased its domestic gas production and pumped more gas into underground storages to prepare for cold winter months amid a severe power crisis, its CEO said on Wednesday. CEO Oleskiy Chernyshov said that Ukraine had 9.5 billion cubic metres of natural gas in its underground storage as of July 3. Naftogaz raised its domestic gas production by 8% to 7.3 bcm in the first half of the year. "A very big challenge ahead of this winter is energy supply and generation of additional electricity volumes. We should count on additional volumes that could be generated with the natural gas," Chernyshov told Ukrainian TV. Since March, Russian missile and drone attacks knocked out about half of Ukraine's available generation capacity and forced rolling blackouts across the country despite lower levels of consumption in the summer. Ukraine's energy industry is rushing with repairs. Officials, cities and businesses also want to create more decentralized power generation, including by using gas turbines. Chernyshov said that Naftogaz was pumping gas into its underground storages quicker than last year despite war time challenges. The company already pumped 400 mcm of gas more this year compared with the same period of 2023 with total volumes reaching 9.5 bcm, he said. "This volume is enough to plan reaching more than 13 billion cubic metres in volumes at the start of the 2024-2025 heating season," Oleksiy Chernyshov told Ukrainian TV. Sign up here. https://www.reuters.com/business/energy/ukraines-naftogaz-pumps-more-gas-into-storage-amid-power-crisis-2024-07-03/

2024-07-03 11:04

LONDON, July 3 (Reuters) - Russian firms have boosted zinc metal production over the past month to benefit from rising state demand and reduce reliance on China as a destination for material, two sources familiar with the matter told Reuters. Russia's output of zinc used to galvanise steel is a fraction of the global total, but it will add to tightness in the global zinc concentrate market as seen in China's imports. Russia's commodity exports to China soared after Western sanctions were imposed on Moscow for its invasion of Ukraine in Feb. 2022. However, ever-widening U.S. sanctions, including those on the only Russian bank branch in China, have narrowed options for making payments to Russian firms, crucial for state revenues. Sanctions-hit Russian groups "UMMC and RCC have increased production of refined metal zinc itself, as zinc concentrate exports to China dropped due to problems with timely arrival of payments and discounts which Chinese buyers request for on-time payments," a source familiar with the matter said. Russian state orders for finished products are up, while for remaining exports to China, fewer shipments of refined metal mean fewer payment transactions, the source added. UMMC and RCC, which mine zinc in Russia, did not respond to a Reuters' request for comment. Russia's production of finished metals products, which include weapons and ammunition, jumped 56% in May. The second source said the Chelyabinsk Zinc Plant, the only producer of the metal in Russia, was quickly ramping up output after a decline in recent years following reconstruction work. The upgrade at the plant, owned by UMMC, has added about 15% to its production capacity, the first source said. Consultancy CRU expects the plant's output to rise to 212,000 metric tons in 2025 from 209,000 tons this year, or 1.5% of the 2024 global total, estimated at 14.0 million tons. Another smelter, the New Verkhny Ufaley smelter owned by a local firm, Polimet Engineering, is expected to start producing in the third quarter. CRU expects it to produce 40,000 tons this year and 80,000 tons in 2025. By 2027, Russia will be able to produce 322,000 tons of refined zinc from the Chelyabinsk and Verkhny Ufaley smelters, up from last year's 205,000 tons, CRU analyst Tom Rutland said. Sign up here. https://www.reuters.com/markets/europe/russian-firms-raise-zinc-output-meet-government-demand-sources-say-2024-07-03/

2024-07-03 11:02

LONDON, July 3 (Reuters) - Britain's Labour Party is projected to win Thursday's national election with a large majority, returning to power after 14 years in opposition. Below are some of the party's main domestic policy plans, set out in its manifesto ahead of the July 4 vote: ECONOMY Labour has said sustained economic growth will be its first mission for government. Its plan focuses on wealth creation. It has said it will be "pro-business and pro-worker" and introduce a new industrial strategy, which will end short-term economic policy. Labour intends to establish a National Wealth Fund, capitalised with 7.3 billion pounds ($9.2 billion), which aims to attract three pounds of private investment for every pound of public money to support growth and clean energy. The party has said there will be no return to austerity and its economic approach will be governed by fiscal rules requiring a balanced budget, with day-to-day costs met by revenues, and debt to be falling as a share of the economy by the fifth year of the forecast. TAXES It has pledged not to raise taxes "for working people", with no increase in the basic, higher, or additional rates of income tax, National Insurance, or VAT. It will cap corporation tax at the current level of 25%. The party has also pledged to close loopholes which allow some so-called 'non-dom' wealthy people who live in Britain to avoid paying tax. HEALTH AND SOCIAL CARE Labour plans to cut waiting times in the National Health Service by adding 40,000 more appointments every week. This will include incentivising staff to carry out extra appointments out of hours, pooling resources across neighbouring hospitals and using spare capacity in the private sector. It will also double the number of diagnostic cancer scanners. Labour plans to train thousands more family doctors and guarantee a face-to-face appointment for all those who want one. It has also pledged to provide 700,000 more urgent dental appointments and recruit new dentists to areas that need them most as well as introducing a supervised tooth-brushing scheme for 3- to 5-year-olds. DEFENCE Labour has said it will set out a path to boost defence spending to 2.5% of GDP. It plans to launch a Strategic Defence Review to assess the threats faced and the capabilities needed to address them. The party also plans to ensure a strong domestic defence sector and resilient supply chains, including steel. It will prioritise UK businesses for defence investment and reform procurement. IMMIGRATION Labour has pledged to reduce net migration. It wants to reform Britain's points-based immigration system, by bringing in restrictions on visas and by training workers where there are domestic shortages. On illegal migration, it will scrap the current government's plan to deport asylum seekers to Rwanda, and focus on stopping people-smuggling gangs and beefing up border security. It will hire additional asylum caseworkers to clear the backlog of claims and set up a new returns and enforcement unit to fast-track removals to safe countries for people who do not have the right to stay. CLIMATE AND ENERGY It will aim for clean power by 2030 by doubling onshore wind, tripling solar power and quadrupling offshore wind. The party will establish state-owned Great British Energy, backed by 8.3 billion pounds to co-invest in leading technologies and help support capital-intensive projects. Labour has said it will maintain "a strategic reserve" of gas power stations to guarantee security of supply. It will not issue new licences for oil and gas fields in the North Sea. The party plans to close loopholes in the windfall tax on oil and gas companies. It will also extend the sunset clause in the Energy Profits Levy until the end of the next parliament, increase the rate of the levy by three percentage points, and remove investment allowances. Labour wants to ensure the long-term security of the nuclear power sector, extending the lifetime of existing plants and has said new nuclear power stations and Small Modular Reactors will play an important role in helping the UK achieve energy security and clean power. EDUCATION Labour plans to recruit 6,500 new teachers in key subjects, and fund free breakfast clubs at every primary school. It has also pledged to expand the availability of childcare by opening 3,000 new nurseries based in primary schools. Labour has pledged to end a tax exemption for fee-paying schools to invest more in state-run schools. CONSTITUTIONAL REFORMS Labour will reduce the voting age to 16, from 18. The party will also make changes to parliament's upper chamber, the House of Lords, including removing the right of hereditary peers to sit and vote and introducing a mandatory retirement age. It has also committed to ultimately replacing the House of Lords with an alternative second chamber that is "more representative of the regions and nations" of the UK. ($1 = 0.7919 pounds) Sign up here. https://www.reuters.com/world/uk/uk-election-what-has-labour-promised-do-if-elected-2024-07-03/

2024-07-03 10:58

TORONTO, July 3 (Reuters) - The Canadian dollar is set to strengthen over the coming year but its gains will be limited after the Bank of Canada began cutting interest rates ahead of the Federal Reserve and as the U.S. election fans economic uncertainty, a Reuters poll found. The median forecast of more than 40 foreign exchange analysts in the June 28-July 3 poll showed the loonie will be little changed at 1.3700 a U.S. dollar, or 72.99 U.S. cents, in three months, compared to 1.3667 in last month's poll. It was predicted to advance 2.4% to 1.3350 in a year, versus 1.3333 expected previously. "We expect the BoC to cut in July, whereas the bands of uncertainty around the U.S. inflation and Fed outlook are wider, with a risk of the Fed holding rates high for longer," said Jayati Bharadwaj, a global FX strategist at TD Securities. Last month, the BoC became the first G7 central bank to begin easing monetary policy, lowering its benchmark rate by 25 basis points to 4.75%. Investors see a roughly 40% chance the BoC eases further at its next policy decision on July 24, while they expect the Fed to wait until at least September before beginning its easing cycle, swaps market data shows. The U.S. election could also weigh on the loonie, Bharadwaj said. U.S. President Joe Biden faces former President Donald Trump in the November presidential election. Trump has vowed to increase tariffs on Chinese imports, potentially unleashing a new trade war. Canada is a major producer of commodities, including oil, so its economy is particularly dependent on trade, especially with the United States, to which it sends 75% of its exports. (For other stories from the July Reuters foreign exchange poll:) Sign up here. https://www.reuters.com/markets/currencies/canadian-dollar-gains-seen-capped-by-central-bank-divergence-2024-07-03/

2024-07-03 10:55

BERLIN, July 3 (Reuters) - Europe's wind turbine industry on Wednesday criticized a deal to supply Chinese-made turbines for an offshore project in the North Sea, saying it posed a threat to critical German infrastructure. The complaint comes amid broader trade tensions between Europe and China, recently focused on electric cars where the EU has proposed tariffs on Chinese imports. Under the deal between German asset manager Luxcara and China's Ming Yang (301291.SZ) New Tab, opens new tab, the Chinese group would supply 16 turbines, each with a capacity of up to 18.5 MW, set for installation in 2028. The deal comes as after the European Commission in April requested information as part of a preliminary review of possible market distortions by Chinese wind turbine makers in five European Union countries, a move that China called "discriminatory". "The European wind industry needs fair competition and a level playing field for all parties," industry association WindEurope said in a statement. The project will generate electricity for around 400,000 households a, contributing to Germany´s goal to cover 80% of its power needs by renewable energy by 2030, Luxcara said. WindEurope said the deal gave China access to critical infrastructure in Germany, adding that Europe's supply chain had been ready to deliver turbines for this project. "Germany and the European Union must consider whether they see wind energy as a strategic sector before it is too late," it added. Luxcara said it had signed the agreement after an international tender and extensive due diligence exercise covering the supply chain, environmental, social, and governance compliance aligned with the EU taxonomy and cyber security. "The Waterkant team thoroughly examined the turbine offers received in response to an international tender launched in late 2023," the asset manager said, adding that relevant electrical components of the turbine will be sourced from European sub-suppliers. Sign up here. https://www.reuters.com/markets/deals/european-wind-turbine-industry-criticises-german-deal-with-chinese-supplier-2024-07-03/

2024-07-03 10:48

DUBAI, July 3 (Reuters) - India-based crypto exchange CoinDCX (COIN.NS) New Tab, opens new tab has acquired Middle East-focused crypto platform BitOasis, the two companies said in a joint statement on Wednesday. The firms did not disclose the transaction value, but BitOasis said in a separate statement that CoinDCX, which had already acquired a stake in the business last year, now owns the full share capital of the Dubai-based company. BitOasis added that the brand and leadership team would remain unchanged following the deal, which is set to help the firm strengthen its position in the region - where it serves 15 countries - and enhance its services. The United Arab Emirates is aiming to become a global centre for the crypto industry and Dubai, considered the Gulf's tourism and business hub, set up watchdog VARA in 2022 to regulate the emerging virtual asset sector. Founded in 2016, BitOasis provides broker-dealer services to qualified retail and institutional investors under its minimum viable product (MVP) operational licence provided by VARA. It recently obtained a similar licence from the Central Bank of Bahrain. Sign up here. https://www.reuters.com/markets/deals/india-based-crypto-exchange-coindcx-acquires-dubais-bitoasis-2024-07-03/