2024-06-18 10:49

June 18 (Reuters) - Heat levels during the Paris Olympics could pose health risks for competitors, a report by environmental groups said, adding that continued increases in global temperatures could jeopardise future editions of the Games. The report, titled 'Rings of Fire: Heat Risks at the 2024 Paris Olympics', was published on Tuesday by the British Association for Sustainable Sport and Frontrunners, an organisation helping athletes engage in environmental issues. Temperatures are expected to soar again in the European summer, after setting records in 2023, with French national weather agency Meteo-France saying that conditions are likely to be warmer than normal. Heat and humidity was also a major issue at the Tokyo Olympics, where athletes - even those well-used to training in hot climates - found it extremely tough going. "The next Olympics in Paris is now upon us, and notable cases of extreme heat undermining the health and enjoyment of sporting spectacles have only increased in the intervening years (since the Tokyo Olympics)," said the report, whose researchers spoke to both scientists and athletes. "The fact that the Olympics will take place during high summer means that the threat of a devastating hot spell is a very real one," it said. The report, which looked at data from the past 100 years since the Games were hosted in France in 1924, found that temperatures had increased by 3.1 degrees celsius on average during the months of July and August - when the Olympics are traditionally held. British men's rugby sevens player Jamie Farndale warned of the dangers athletes could face due to the heat, adding: "What we do is push ourselves to our limits, and if we have to do so in conditions that are unsafe I don't think the athlete would hold back." Reuters has contacted the International Olympic Committee for comment. Sign up here. https://www.reuters.com/sports/olympics/athletes-face-heat-risks-paris-games-report-says-2024-06-18/

2024-06-18 10:41

GABORONE, June 18 (Reuters) - Botswana's economy may fall short of the government's 4.2% growth target for this year, a senior central bank official said on Tuesday, citing global and domestic constraints. Finance minister Peggy Serame made the projection for a 4.2% increase in GDP in a budget speech in February, saying the government expected growth to accelerate from 2023 due to an improved performance in the diamond sector. Gross domestic product grew 2.7% in 2023. However, Botswana's mining sector, which is dominated by diamonds, is still struggling, reflecting sluggish market conditions globally. Sales at Debswana Diamond Company, a joint venture between the southern African country's government and Anglo American's De Beers unit, were down about 48% year-on-year in the first quarter of 2024. "From what we have seen in the first half of the year, unfavourable global economic conditions ... as well as domestic structural constraints, one would expect that we are unlikely to attain the projected economic growth," Innocent Molalapata, the central bank's director of research and financial stability, told an economic briefing. "A downward revision of the growth target might therefore be required," Molalapata said, adding that mining output contracted roughly 27% in the first quarter. The Bank of Botswana tends not to give precise GDP growth forecasts, leaving that to the finance ministry. The International Monetary Fund forecasts Botswana's economy will grow 3.6% in 2024. Sign up here. https://www.reuters.com/world/africa/botswana-may-fall-short-42-growth-target-cenbank-official-says-2024-06-18/

2024-06-18 10:36

GABORONE, June 18 (Reuters) - Botswana's Debswana Diamond Company on Tuesday reported a fatality at its Jwaneng mine following an accident involving a crane and drill rig. The incident, which took place on Monday, involved an employee of one of Debswana's contracting companies, it said in a statement. Investigations into the incident are ongoing, Debswana added. Debswana is a joint venture between the Botswana government and diamond giant De Beers, a unit of Anglo American Plc (AAL.L) New Tab, opens new tab. Sign up here. https://www.reuters.com/world/africa/botswanas-debswana-reports-fatality-its-jwaneng-mine-2024-06-18/

2024-06-18 10:24

LONDON, June 18 (Reuters) - Global investors remained bullish in June, with cash allocations holding at three-year lows and equity allocations elevated, according to Bank of America's monthly fund manager survey published on Tuesday. Underpinning the optimism, 73% of those surveyed said they saw no recession in the U.S. in the next 18 months but 84% said they expected the Federal Reserve to cut rates at some point in 2024, according to a survey of 206 investors with $604 billion assets under management. Investors have also increased their holdings of euro zone stocks, with allocations rising 12 percentage points compared to May's survey, to net 30% overweight, the highest since January 2022. The survey was carried out from June 7-13 June and so partially captured last week's sell-off in European, and particularly French assets, due to political uncertainty in the bloc's second largest economy. Investors pared back their holdings of Japanese stocks, which have been very popular for the past year, with allocations falling 16 percentage points month-on-month to the lowest overweight since July 2023. Sign up here. https://www.reuters.com/markets/global-investors-stayed-optimistic-june-upped-eu-allocations-2024-06-18/

2024-06-18 10:06

A look at the day ahead in U.S. and global markets from Mike Dolan Tech-led Wall Street stocks have sailed to new records again this week, with Tuesday expected to see retail sales return to growth and as nervy European markets calmed for a second day. The relentless outperformance of U.S. tech megacaps on the artificial intelligence theme now has the Nasdaq (.IXIC) New Tab, opens new tab nearing 20% gains for the year to date, outstripping the S&P500 (.IXIC) New Tab, opens new tab by more than 4% - while the equal-weighted S&P index (.EWGSPC) New Tab, opens new tab is only up a relatively meagre 3.3% for 2024. The buoyancy of the wider economy, however, is expected to be underscored later on Tuesday as retail and industry updates for May are expected to show activity expanding again after a flat April. The New York Fed's 'Empire State' business survey on Monday also showed an improvement this month - even as prices paid by firms and employment readings eased back. The picture supports the Federal Reserve's indication of just one interest rate cut this year - and futures markets are scaling back their expectations of two moves, with pricing of full-year Fed easing ticking down to 44 basis points. "If all of it happens to be as forecasted, I think one rate cut would be appropriate by year's end," Philadelphia Fed President Patrick Harker said on Monday. A torrent of Fed speakers fill today's diary and will reveal whether Harker's colleagues tally with that take. With a 20-year bond auction due on Tuesday, U.S. Treasury yields have firmed up again as a result - giving back more of last week's slide on encouraging May disinflation news. Ten-year yields nudged back above 4.30% earlier and the dollar (.DXY) New Tab, opens new tab firmed again. Part of the reversal of Treasury yields may be down to a calming of sovereign debt tensions in the euro zone, with French government yield premia easing back for the second day and euro zone equities ticking higher. Although nominal French debt yields rose only modestly after last week's shock snap election announcement, the spread over Germany widened to the highest since 2017 amid a dash for relative safety in German bunds. But as French election campaign got underway ahead of the first round of assembly elections on June 30, there's more of a 'wait and see' mood this week as the myriad of potential outcomes get assessed and the European Central Bank's reaction function was eyed. Still-punchy euro zone wage growth has elicited a more cautious ECB stance about when a second rate cut may come this year. But while the ECB played down any possible direct action to stabilise its bond markets, economists have pointed to the risk that a sizeable hit to French banks' stock prices due to the political uncertainty could have knock-on bank credit growth and build pressure for more easing rather than bond intervention per se. CAUTIOUS CENTRAL BANKING TONE Stocks in Asia were higher, meantime, helped largely by the tech-related ebullience around the world. But the cautious global central banking tone was evident around the region. The Reserve Bank of Australia left its key interest rates at a 12-year high of 4.35% for a fifth straight meeting, but emphasised the need to be vigilant on inflation. In a hawkish twist, the central bank said it debated whether to raise interest rates again at the meeting. A rate cut there is now not fully priced until April or May next year. The Australian dollar , however, held steady. Dollar/yen, meantime, continued to nudge higher even as Bank of Japan Governor Kazuo Ueda said the central bank could raise interest rates next month depending on economic data available at the time. Back on Wall St, AI-infused Apple (AAPL.O) New Tab, opens new tab, Nvidia (NVDA.O) New Tab, opens new tab and Microsoft (MSFT.O) New Tab, opens new tab continued to jockey for the role of the world's most valuable company. In individual company news, Apple said late on Monday said it will discontinue its "buy now, pay later" service in the United States as it launches a new loan program. Users will be able to access instalment loans offered through credit, debit cards and lenders when checking out with Apple Pay, starting later this year, the company said in a statement. On the other side of the spectrum, U.S. electric vehicle maker Fisker filed for bankruptcy protection, looking to sell its assets and restructure its debt, after succumbing to rapid cash burn to deliver its "Ocean" SUVs in the United States and Europe. Key developments that should provide more direction to U.S. markets later on Tuesday: * US May retail sales, May industrial production, April business/retail inventories, April TIC data on Treasury holdings * Federal Reserve Board Governor Adriana Kugler, Fed Governor Lisa Cook, Boston Fed President Susan Collins, Dallas Fed chief Lorie Logan, St. Louis Fed boss Alberto Musalem, Richmond Fed President Thomas Barkin and Chicago Fed chief Austan Goolsbee all speak * U.S. Treasury auctions 20-year bonds Sign up here. https://www.reuters.com/markets/us/global-markets-view-usa-2024-06-18/

2024-06-18 09:51

LONDON, June 18 (Reuters) - The pound slipped to trade around a one-month low against the dollar on Tuesday as investors waited for inflation figures on Wednesday and the Bank of England's interest rate decision the day after that. Sterling was also down slightly against the euro, pulling away from a two-year high touched on Friday. The pound has been buffeted over the last week by swings in the euro and dollar as global currency markets have digested U.S. inflation data, a Federal Reserve meeting and French President Emmanuel Macron's decision to call snap elections. The euro has tumbled and the dollar has strengthened against most currencies as the threat of a far right government in France has pushed investors towards the safety of the U.S. currency. Sterling was down 0.17% on Tuesday at $1.2683 as the dollar strengthened against most currencies, just above a one-month low of $1.2658 touched on Friday. Meanwhile, the euro was up very slightly against the pound at 84.52 pence, after sliding 0.6% last week to as low as 83.97 pence. The BoE's monetary policy committee (MPC) is widely expected to leave interest rates at 5.25% on Thursday, though investors will scrutinise the accompanying statement for any hints about when borrowing costs might fall. Consumer price index (CPI) data due on Wednesday is expected to show Britain's inflation rate fell back to the BoE's 2% target in May, from 2.3% in April (GBHICY=ECI) New Tab, opens new tab. "Wednesday's CPI... will impact market pricing of just under two cuts for this year, whilst Thursday is likely to see rates unchanged at 5.25%, with a 7–2 vote split likely from the MPC," said Joe Tuckey, head of FX analysis at broker Argentex. "In the absence of a cut this week, the MPC are likely to wait until the August meeting, by which time another inflation print will be known." BoE policymakers remain concerned that inflation for services (GBCPSA=ECI) New Tab, opens new tab, which dominate the UK economy, is running at an elevated 5.9% and could put upwards pressure on broader inflation again in the coming months. The UK's general election campaign ahead of polling day on July 4 has had little impact on the pound, with both parties pledging to be responsible on tax and spend after the Liz Truss budget crisis in 2022. Sign up here. https://www.reuters.com/markets/currencies/pound-dips-investors-look-inflation-data-rates-decision-2024-06-18/