2024-06-16 23:25

QUITO, June 16 (Reuters) - A landslide in Ecuador killed at least six people and left 30 others missing, according to preliminary information from Ecuadorian authorities on Sunday. The "large-magnitude" landslide occurred in the center of the country in the city of Banos de Agua Santa, the Ecuadorean Secretariat for Risk Management said in a report. "My solidarity with all the families that have been affected," wrote Roberto Luque, Ecuador's minister of public works, on the social media platform X. A heavy rainstorm caused by low pressure swept across parts of Central and South America on Sunday, with various countries warning of the increased risk of landslides, rock falls and flooding. In El Salvador, the country's civil protection agency declared a red alert due to heavy rains throughout the small nation, while in neighboring Guatemala several airlines diverted flights, according to the Guatemalan ministry of communications, infrastructure and housing. Sign up here. https://www.reuters.com/world/americas/landslide-ecuador-kills-least-6-leaves-30-missing-2024-06-16/

2024-06-16 22:51

June 16 (Reuters) - A wildfire burning northwest of Los Angeles on Sunday has forced the evacuation of over 1,000 people from a popular outdoor recreation area and burned over 12,000 acres, authorities said. Some 400 firefighters armed with 70 firetrucks and two bulldozers are battling the Post fire, which is just 2% contained, according to Cal Fire. It is burning south of Gorman, California, about 60 miles (96.5 km) northwest of Los Angeles. The fire, which started Saturday afternoon, is moving to the southeast, toward Pyramid Lake, Cal Fire said. Some 1,200 people have been evacuated from the Hungry Valley recreation area, which has trails for motorcycles and off-road vehicles, since the fire broke out. Two structures have been destroyed so far. Cal Fire said that efforts to contain the wildfire are being hampered by high temperatures, low humidity and strong winds, forecast to continue through Sunday night. Water-dropping aircraft are working to halt forward progress of the fire, while firefighters are constructing perimeter fire lines in an effort to get the blaze under more control. Sign up here. https://www.reuters.com/world/us/california-wildfire-burns-12000-acres-forces-evacuations-2024-06-16/

2024-06-16 21:47

June 17 (Reuters) - A look at the day ahead in Asian markets. The monthly Chinese 'data dump' kicks off the global trading week on Monday, with the slew of top-tier indicators likely to give investors a measure of how much the world's second largest economy is struggling to gain momentum. Producer and consumer prices last week confirmed that the threat of deflation still hangs over China, and retail sales, business investment, industrial production, and house price figures on Monday will give a clearer picture of economic activity. China's central bank is widely expected to leave a key policy rate unchanged when rolling over maturing medium-term loans on Monday, with worsening interest margins and a weakening currency hampering authorities' ability to ease policy. In a Reuters poll of 31 market watchers, 30 expect the rate on the one-year medium-term lending facility loan to be left at 2.50%. The lone outlier projected a marginal cut of 5 basis points. This comes amid a generally upbeat global market environment with hopes of a U.S. 'soft landing', a relaxed Fed, subdued volatility, and continued optimism in tech pushing Wall Street and world stocks to record highs. Disinflation in the United States appears to be broadening out across consumer and producer prices, and the impact on market rates is clear to see - the 10-year Treasury yield on Friday hit a two and a half-month low below 4.20%, and rates traders are fully pricing in two quarter-point cuts this year. That's a dovish stance relative to the Fed's revised projections of one cut this year, a position Minneapolis Fed President Neel Kashkari reiterated on Sunday. Falling U.S. yields may benefit Asian and emerging markets, but a strengthening dollar could counteract this. The dollar closed last week at a six-week high, and CFTC positioning data on Friday showed that funds increased their long dollar positions for the first time in seven weeks. The U.S. currency starts the week on the front foot, especially against the yen, after the Bank of Japan's cautious stance on Friday on raising interest rates and reducing its balance sheet dragged the yen and Japanese bond yields lower. This could lend support to Japanese stocks on Monday. Chinese stocks, however, remain under pressure. As the yuan fell to a seven-month low on Friday, stocks hit their lowest in nearly two months. Beijing appears to be getting nervous. China's securities regulator on Sunday said it will step up curbs on short-selling New Tab, opens new tab activities, and will tighten supervision of illegal share reductions by listed companies' major shareholders. In South Korea, meanwhile, a senior presidential official said this weekend that stabilizing prices are laying the conditions for the central bank to cut interest rates. And in corporate news, Hyundai Motor India on Saturday sought regulatory approval to list on the Mumbai stock market in what could be India's biggest IPO ever. Here are key developments that could provide more direction to markets on Monday: - China 'data dump' (May) - Japan machinery orders (April) - South Korea trade (May, revised) Sign up here. https://www.reuters.com/markets/global-markets-view-asia-graphic-pix-2024-06-16/

2024-06-16 14:06

CANBERRA, June 17 (Reuters) - Australia and China will take steps to improve military communication to avoid incidents, Prime Minister Anthony Albanese said after meeting Premier Li Qiang on Monday, in the first visit to the country by a Chinese premier in seven years. The visit by Li, China's top-ranked official after President Xi Jinping, marks a stabilisation in relations between the U.S. security ally and the world's second-biggest economy, after a frosty period of Beijing blocking $20 billion in Australian exports and friction over defence encounters. "One of the very practical measures that we spoke about was improving military to military communication so as to avoid incidents," Albanese told reporters in Canberra after the meeting, which Defence Minister Richard Marles also attended. In an incident last month, a Chinese airforce jet dropped flares near an Australian defence helicopter in international airspace over the Yellow Sea, which Australia said was a dangerous encounter. It was the second defence incident in six months to mar growing rapprochement between the two countries after years of strained relations. Albanese told reporters he had "raised our issues in the Pacific", a reference to Canberra's concern over Beijing's growing security ambitions in nearby Pacific Islands, as well as human rights and Russia's invasion of Ukraine. He had also brought up the case of China-born Australian writer Yang Hengjun, who was sentenced to a suspended death sentence by a Beijing court, he said. Beginning with some panda and wine diplomacy on Sunday, Li is on a four-day visit. The two leaders will travel separately to the mining state of Western Australia on Monday evening, where they will hold roundtable talks on Tuesday with business leaders. "This dialogue has allowed us to build a deeper awareness of our respective interests," Albanese said earlier, noting Australia and China had complementary economies and shared interests in addressing climate change. "We also have our differences… that's why candid dialogue is so important. For Australia, we consistently advocate the importance of a region and world that is peaceful, stable and prosperous, where countries respect sovereignty and abide by international laws," he said. After the meeting, Li told reporters the leaders held a "candid, in-depth and fruitful meeting and reached a lot of consensus". The two countries would expand cooperation in energy and mining, and China would include Australia in its visa waiver programme, he added. "We both stressed the importance of maintaining communication and coordination to jointly safeguard peace and prosperity in the region and beyond," he said. China's state news agency Xinhua reported Li had told Albanese to "oppose bloc confrontation and the 'new Cold War'", a likely reference to Australia's QUAD and AUKUS partnerships with the United States, India, Japan and Britain, which China says are attempts to contain it. PROTESTERS, SUPPORTERS GATHER Protesters and supporters gathered on Monday morning on the lawn outside parliament house in Canberra, where there was a heavy police presence, as a ceremonial welcome was held for Li. Barricades separated Tibetan, Uyghur, Hong Kong and Falun Gong protesters from a large contingent of pro-China supporters. Tibetan Tenzin Wougyal, 37, a Canberra resident, said he came to show Tibet's culture, religion and language are at risk. "Australia should be cautious about what it is doing — don't sacrifice human rights for short-term economic business," he said. Tan Zhu, 50, said he travelled from Sydney to welcome Li to Canberra. "The relationship with Australia has become much better. That's very positive," he said. Trade between Australia and China reached A$327 billion ($216 billion) last year as Beijing's trade blocks eased. Australia is the biggest supplier of iron ore to China and China has been an investor in Australian mining projects. Li's visit raises the issue of whether Australia will continue to accept high levels of Chinese investment in its critical minerals sector, as Western security allies push to reduce reliance on Beijing for the rare earths vital to electric vehicles. Australia last month blocked several Chinese investors from increasing stakes in a rare earths miner on national interest grounds. "It is hoped that the Australian side will provide a fair, just and non-discriminatory business environment for Chinese enterprises and provide more convenience for personnel exchanges between the two sides," Li said in comments reported by Xinhua. ($1 = 1.5142 Australian dollars) Sign up here. https://www.reuters.com/world/asia-pacific/australias-albanese-chinas-li-discuss-trade-jailed-writer-2024-06-16/

2024-06-16 13:07

NEW YORK, June 14 (Reuters) - Elevated U.S. interest rates are pressuring the U.S. retail sector, where shares of many companies have been dented by months of tight monetary policy while a select few have soared. The S&P 500 Consumer Discretionary Distribution & Retail index (.SPXRT) New Tab, opens new tab is up nearly 14% this year, roughly keeping pace with the S&P 500’s year-to-date gain. Much of the sector’s strength, however, has been concentrated in a small group of stocks, including heavyweight Amazon.com (AMZN.O) New Tab, opens new tab, which is up nearly 21% this year. Meanwhile, shares of companies focused on lower-income consumers have struggled, in-part because buyers in that segment have been more affected by elevated interest rates, analysts said. Among the biggest laggards are shares of Dollar Tree (DLTR.O) New Tab, opens new tab, which are down nearly 27% year-to-date and Dollar General (DG.N) New Tab, opens new tab, which have fallen nearly 9%. The retail sector is one of several areas of the economy - in addition to real estate and consumer staples - that have been pressured by elevated rates. The Federal Reserve earlier this week reiterated that it needs to see more evidence of cooling inflation before lowering borrowing costs. "The lower to mid-income segment is getting squeezed because of gas prices and groceries," said Greg Halter, director of research at Carnegie Investment Counsel. “They feel bad even though the economy is doing well.” The consumer will be in focus next week when the U.S. reports retail sales data on Tuesday. Analysts polled by Reuters expect retail sales to have grown by 0.2% in May. Weaker-than-expected results - following data earlier this week showing encouraging progress on inflation - could bolster the case for the Fed to ease rates sooner rather than later. Futures markets have reflected increased investor expectations of a September rate cut, though the Fed projected it will only lower borrowing costs in December. The divergent performance of retail stocks has pushed investors to focus on companies whose consumers can continue to withstand higher interest rates or those that offer discounts on name-brand household items like clothing or groceries, such as warehouse club company Costco Wholesale (COST.O) New Tab, opens new tab. Halter’s fund has been buying shares of companies such as Walmart (WMT.N) New Tab, opens new tab, Costco, and TJX Companies (TJX.N) New Tab, opens new tab whose business models emphasize value for the consumer. Their shares are up 28%, 29% and 16% respectively. Robert Pavlik, senior portfolio manager at Dakota Wealth Management, said he has owned Costco and TJX Companies, pointing to their strong management and inventory controls. "I think inflation will remain but moderate and consumers will still look to get the most out of their dollars," he said. Bokeh Capital Partners owns shares of Urban Outfitters (URBN.O) New Tab, opens new tab, which are up over 20% this year. Kim Forrest, Bokeh's chief investment officer, said Urban Outfitters' strength as a fashion merchandiser has helped the company weather the inflationary environment, adding "people will sacrifice to look good." Josh Cummings, a portfolio manager at Janus Henderson Investors, believes areas such as online shopping will continue to thrive even if interest rates stay elevated. He has been targeting companies such as Carvana (CVNA.N) New Tab, opens new tab, whose shares have nearly doubled this year, and DoorDash (DASH.O) New Tab, opens new tab, whose shares are up around 13%. "We're not terribly excited about the consumer sector overall, but we do think we are in the early innings of some of these growth stories," he said. Sign up here. https://www.reuters.com/markets/rates-bonds/wall-st-week-ahead-retail-stocks-search-direction-rates-stay-high-2024-06-14/

2024-06-16 09:41

PARIS, June 16 (Reuters) - Former French President Nicolas Sarkozy warned on Sunday that President Emmanuel Macron's unexpected decision to dissolve the National Assembly and call for snap legislative elections could backfire and plunge the country into chaos. Macron called the snap vote, to be held in two rounds on June 30 and July 7, after his centrist alliance was trounced by the far-right National Rally (RN) in last Sunday's European Parliament ballot. Sarkozy, the conservative former president who was in office from 2007 to 2012 and remains an important political figure, said possible chaos triggered by the dissolution of the assembly might be challenging to get out of, according to a report in the Journal du Dimanche. "Giving the floor to the French people to justify the dissolution is a curious argument since this is precisely what more than 25 million French people have just done at the polls", Sarkozy, who is on friendly terms with Macron, said in reference to the European elections on June 9. "The risk is great they confirm their anger rather than reverse it," he said. A poll on Saturday appeared to support his concerns. The OpinionWay-Vae Solis poll conducted for Les Echos and Radio Classique forecast RN would lead in the first round of the parliamentary election with 33% of the vote, ahead of the Popular Front, the alliance of left-wing parties, with 25%. Macron's centrist camp had 20%. Thousands marched in Paris and cities across France on Saturday to protest against the far-right National Rally (RN) ahead of the upcoming elections. Sign up here. https://www.reuters.com/world/europe/former-french-president-sarkozy-flags-chaos-risk-election-looms-2024-06-16/