2024-06-13 03:33

NEW YORK, June 12 (Reuters) - The White House will nominate markets regulator Christy Goldsmith Romero as Federal Deposit Insurance Corporation chair imminently as it targets the week of July 8 for her first hearing, a person with direct knowledge of the matter said on Wednesday. Goldsmith Romero, a Democratic commissioner at the Commodity Futures Trading Commission, will replace Martin Gruenberg who is stepping down after a damning probe found widespread sexual harassment and other misconduct at the top banking regulator. The White House is rushing to fill the role so it can push through U.S. President Joe Biden's regulatory agenda, including major bank capital hikes, just six months ahead of the U.S. presidential election. While administration officials have said they want to move fast, the White House and Democratic Senate Banking Committee chair Sherrod Brown, who is responsible for advancing FDIC nominees, have not said when they expect to hold hearings. Kristin Johnson, the CFTC's other Democratic commissioner who was also in the running for the FDIC chair role, will be nominated for Assistant Secretary for Financial Institutions at the Treasury Department at the same time, the same source said. The White House declined comment. Spokespeople for Brown, Treasury and the FDIC did not immediately respond to a request for comment out of business hours. A spokesperson for the CFTC declined to comment. The hearing for Johnson will take place alongside Goldsmith Romero's, the source said. She had been lined up for the Treasury role before Gruenberg succumbed last month to political pressure to resign. Also a Democrat, Gruenberg is staying on until the Senate has confirmed the new chair, which would allow Democrats to retain control of the agency until at least January next year. With the election looming, though, time is tight. The Senate is in session just half of July and out August through Labor Day on September 2. That leaves two months before the November general election when Senators who are up for re-election prefer to be campaigning at home rather than tied up in Washington. The Wall Street Journal previously reported that a formal announcement could come this week. Punchbowl News earlier on Wednesday reported that the White House would announce Romero's nomination on Thursday. Sign up here. https://www.reuters.com/world/us/white-house-nominate-goldsmith-romero-soon-aiming-july-hearing-source-2024-06-13/

2024-06-13 03:00

SYDNEY, June 13 (Reuters) - Australian employment outpaced expectations in May as firms took on more full-time workers, while the jobless rate dipped in a sign the labour market remains resilient even as the economy slowed to a standstill. The report is unlikely to move the needle much on rate cuts, with markets expecting the easing cycle to start only in the second quarter of next year. The Australian dollar perked up to an intraday high of $0.6665 but soon settled where it was before at $0.6651. Net employment rose 39,700 in May from April, data from the Australian Bureau of Statistics showed on Thursday. Market forecasts had been for a gain of 30,000. Full-time employment jumped 41,700 following a couple of soft months. The jobless rate eased back to 4.0%, from 4.1%, in line with estimates, as more people started or returned to their jobs after a break in April, the ABS noted. The participation rate held at an historically high 66.8%, while hours worked dipped 0.5% in the month due to a large number of workers taking time off because they were sick. "Financial markets have given up much hope of rate cuts in Australia this year, so today's decent labour report won't have caused too much of a stir," said Robert Carnell, regional head of research, Asia-Pacific, at ING. "In short, having hit a soft-patch at the end of 2023, the Australian labour market is currently ticking along at a modest pace. It wouldn't take a lot to tip it into a weaker trajectory, but equally, there is also some potential for upside and the net picture is more positive than negative." The Reserve Bank of Australia meets next week and is widely expected to hold interest rates at 4.35% for a fifth straight meeting. It had expected the jobless rate to gradually rise to 4.2% by the end of the year and is keen to avoid a deeper economic downturn by raising interest rates too far. The resilient labour market would be a comfort for policymakers who are keen to preserve the jobs gains even as the broader economy came to a virtual halt in the first quarter, growing a meagre 0.1% as consumers reined in spending. Interest rates are already at a 12-year high but there are signs that inflation is proving hard to tame, with a monthly reading unexpectedly picking up to a five-month high of 3.6% in April after a surprisingly strong first quarter report. Markets imply less than a 50% chance of a cut in December, having already moved earlier in the day after a slowdown in U.S. inflation revived hopes for an easing in policy there. They are fully priced for a 25-basis point cut in April next year. VanEck Head of Investments & Capital Markets Russel Chesler said the report solidified his position that any reduction in the cash rate is a long way off. "Persistent services inflation is the monkey on Australia's back. Shaking this off has been difficult due to the strength of the labour market ... We don't see a rate cut happening until 2025 – and possibly not until mid-year." Sign up here. https://www.reuters.com/markets/australia-jobs-climb-39700-may-unemployment-dips-4-2024-06-13/

2024-06-13 00:50

NEW YORK, June 13 (Reuters) - Oil prices rose slightly on Thursday in up-and-down trade, supported by an OPEC forecast for demand growth and as data showing an U.S. easing labor market and slowing inflation which stoked hopes for Federal Reserve rate cuts despite recent comments form Fed officials. Brent crude futures settled at $82.75 a barrel, up 15 cents, or 0.2%. West Texas Intermediate (WTI) U.S. crude futures settled at $78.62 a barrel, gaining 12 cents, or 0.2%. Both benchmarks had gained nearly 1% in the previous session. Fresh comments by the Organization of Petroleum Exporting Countries also helped boost crude prices. The organization expects demand to grow to 116 million barrels a day by 2045, and possibly higher, OPEC Secretary General Hathaim Al Ghais said on Thursday in a rebuke of an International Energy Agency report predicting peak oil consumption by 2029. Al Ghais, writing in Energy Aspects, called the IEA report "dangerous commentary, especially for consumers, and (that) will only lead to energy volatility on a potentially unprecedented scale." The U.S. Labor Department said the producer price index (PPI) for final demand dropped 0.2% on a month-to-month basis in May. Economists polled by Reuters had forecast a 0.1% increase. Separate data showed weekly initial jobless claims exceeded estimates to reach a 10-month high. On Wednesday, the Fed held interest rates steady and pushed out the projected start of policy easing to as late as December. In a press conference after the end of the U.S. central bank's two-day policy meeting, Fed Chair Jerome Powell said inflation had fallen without a major blow to the economy. Powell's comments "implying no definitive time frame for a rate reduction appeared to place additional pressure on the energy complex," said Jim Ritterbusch of Ritterbusch and Associates. Higher borrowing costs tend to dampen economic growth and can limit oil demand. Tomorrow, investors will turn their sights to the University of Michigan's Consumer Sentiment Index for signs of U.S. economic strength or weakness. "Last month, the number came in much weaker than anticipated, with the surprise print spawning volatility in the oil patch as traders viewed the lame number as a negative demand indicator," said Bob Yawger, director of energy futures at Muzuho. On the supply side, U.S. crude stockpiles rose more than expected last week, driven largely by a jump in imports, while fuel inventories also increased more than expected, data from the Energy Information Administration showed on Wednesday. Oil traders are also watching continuing talks over a potential ceasefire in Gaza, which could ease fears of oil supply disruptions in the region. In the latest attack on shipping, Iran-allied Houthi militants on Wednesday took responsibility for small watercraft and missile attacks that left a Greek-owned coal carrier in need of rescue near Yemen's Red Sea port of Hodeidah. Sign up here. https://www.reuters.com/business/energy/oil-slips-us-growth-worries-ample-crude-supply-2024-06-13/

2024-06-12 23:07

May CPI data unexpectedly flat Oracle rallies on double-digit FY25 revenue growth forecast Fed leaves rates unchanged Indexes: Dow down 0.1%, S&P 500 up 0.9%, Nasdaq up 1.5% NEW YORK, June 12 (Reuters) - The S&P 500 and Nasdaq posted record closing highs for a third straight day on Wednesday after inflation data came in softer than expected but the indexes ended off the day's highs as the Federal Reserve projected only one interest rate cut this year. The Fed's March projections included three quarter-percentage-point reductions. The U.S. central bank, in a statement at the end of its June 11-12 meeting, also said it left its policy rate unchanged, as expected. Stocks were choppy following the news and press conference with Fed Chair Jerome Powell, with the S&P 500 and Nasdaq paring gains late and the Dow finishing near flat. Stocks opened higher after the Labor Department reported that the U.S. Consumer Price Index was unexpectedly unchanged in May due to cheaper gasoline. "The CPI number was certainly cooler than estimates and drove optimism to start the day but that was only half of today's menu," said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles. James said he would have expected the market to end weaker after the Fed's update, noting that "the commentary was hawkish and rate cut (expectations) were trimmed from three to one." Oracle (ORCL.N) New Tab, opens new tab shares jumped 13.3%, lifting the market, after the software provider forecast double-digit revenue in fiscal 2025 after the bell on Tuesday. The Dow Jones Industrial Average (.DJI) New Tab, opens new tab fell 35.21 points, or 0.09%, to 38,712.21. The S&P 500 (.SPX) New Tab, opens new tab rose 45.71 points, or 0.85%, to 5,421.03 and the Nasdaq Composite (.IXIC) New Tab, opens new tab advanced 264.89 points, or 1.53%, to 17,608.44. Just after the CPI report, traders boosted bets for a Fed rate cut by September and another by December. Apple's shares climbed 2.9%, extending Tuesday's strong gains, and the company briefly once again became the world's most valuable, dethroning Microsoft (MSFT.O) New Tab, opens new tab from the top spot. Volume on U.S. exchanges was 11.80 billion shares, compared with the 12.74 billion average for the full session over the last 20 trading days. Advancing issues outnumbered decliners on the NYSE by a 2.86-to-1 ratio; on Nasdaq, a 1.78-to-1 ratio favored advancers. The S&P 500 posted 39 new 52-week highs and two new lows; the Nasdaq Composite recorded 99 new highs and 80 new lows. Sign up here. https://www.reuters.com/markets/us/futures-tread-water-ahead-inflation-data-fed-outlook-2024-06-12/

2024-06-12 23:06

HAVANA, June 12 (Reuters) - A Russian navy frigate and a nuclear-powered submarine churned into Havana harbor on Wednesday, a stopover the U.S. and Cuba said posed no threat but which was widely seen as a Russian show of force as tensions rise over the Ukraine war. Curious onlookers, fishermen and police lined the Malecon seafront boulevard under gray skies to welcome the ships as they passed the 400-year old Morro castle at the harbor's entrance. Cuba - a long-time ally of Russia - saluted the ships' arrival with cannon fire from the harbor, while Russian diplomats waved small Russian flags and took selfies as the vessels passed the harbor's historic fortresses. The Admiral Gorshkov frigate, and later the nuclear-powered submarine Kazan, half submerged with its crew on deck, were accompanied by a tugboat and fuel ship that had arrived earlier in the morning. The four Russian vessels sailed to Cuba on Wednesday after conducting "high-precision missile weapons" training in the Atlantic Ocean, Russia's defence ministry said Wednesday. The submarine and frigate carry Zircon hypersonic missiles, Kalibr cruise missiles and Onyx anti-ship missiles, the ministry said. Cuba said last week that the visit was standard practice by naval vessels from countries friendly to Havana. The communist-run government's foreign ministry said the fleet carried no nuclear weapons, something echoed by U.S. officials. The U.S. has been monitoring the Russian vessels as they skirted the nearby Florida coast, but has said they pose no threat. White House national security adviser Jake Sullivan told reporters on Wednesday such naval exercises were routine. "We have seen this kind of thing before and we expect to see this kind of thing again, and I'm not going to read into it any particular motives," Sullivan said. Sullivan said there was no evidence of Russia transferring any missiles to Cuba, but the U.S. would remain vigilant. "We do not expect anything like that to occur." POWER PLAY Havana is just 100 miles (160 km) from Key West, Florida, home to a U.S. Naval Air Station. The timing of the visit - as the Biden administration ponders how far to go in helping defend Ukraine against Russia - suggests more than "standard practice," said William Leogrande, a professor at American University. "The visiting Russian warships are Putin's way of reminding Biden that Moscow can challenge Washington in its own sphere of influence," Leogrande said. The stopover coincides with Cuba's worst social and economic crisis in decades, with shortages of everything from food, medicine and fuel and growing discontent on the streets. "This ... has echoes of the Cold War, but unlike the first Cold War, the Cubans are drawn to Moscow not by ideological affinity but by economic necessity," Leogrande said. History looms large in Cuba, especially when it comes to Russia and its predecessor the Soviet Union. The Cuban missile crisis erupted in 1962 when the Soviet Union responded to a U.S. missile deployment in Turkey by sending ballistic missiles to Cuba, sparking a standoff that brought the world to the brink of nuclear war. The two countries are once again strengthening ties. Cuban President Miguel Diaz-Canel visited Russian President Vladimir Putin for the fourth time in May, when he attended a military parade, wished Russian forces well in Ukraine and said Moscow could always count on Havana's support. Russia in March delivered 90,000 metric tons of Russian oil to Cuba to help alleviate shortages, and has promised to help Havana in projects ranging from sugar production to infrastructure, renewable energy and tourism. The history between the two nations was not lost on many of the Cubans who watched the Russian ships' arrival. "I have never seen a ship of that size so close," said María Isabel Quesada, 50, of nearby Old Havana. "As a Cuban I feel safe, I feel satisfied ... confident in having a very beautiful relationship between our countries." The Russian ships are expected to remain in Havana until June 17. Sign up here. https://www.reuters.com/world/russian-warships-enter-havana-harbor-under-washingtons-watchful-eye-2024-06-12/

2024-06-12 23:04

CORUMBA, Brazil, June 12 (Reuters) - Fatima Brandao goes looking for her chickens in the backyard amidst a veil of smoke from the spreading fires that are engulfing the world's largest tropical wetland faster than ever before. "There never used to be smoke here. The sun shone clearly and the sky was always blue. Now the whole hill is on fire and smoke has clouded the entire area," she said. The Pantanal wetlands in central-western Brazil are home to a wide variety of animals, including jaguars, anacondas and giant anteaters. A shortfall of rain this year has caused the wildfire season to start earlier and become more intense than in previous years, threatening to exceed the worst blazes on record that in 2020 decimated a third of the wetlands and killed 17 million vertebrates. This year, the fires have already incinerated monkeys, caimans and snakes. Satellite data from Brazil's National Institute for Space Research (INPE) showed that the Pantanal fires have surged almost tenfold so far this year. The figures have raised alarms as the region heads into the riskiest season for wildfires, which usually starts in July and peaks in August and September. Brandao who was born and raised here said she has never seen anything like it. The inhabitants of the Pantanal are mostly farmers, hunters, and fishermen, and they are increasingly turning to ecotourism to tap the rich biodiversity of the wetlands. Climate change has threatened that livelihood by increasing the incidence of fires that ravage the region, killing the flora and fauna. "We are breathing in this smoke. Who is going to go out to work in these conditions," Brandao said, complaining that the smell was acrid and there was dust everywhere in her house. Weak rains have disrupted the seasonal flooding of the Pantanal wetlands, which are about 10 times the size of the Florida everglades, leaving them more vulnerable to fire. Sign up here. https://www.reuters.com/business/environment/brazils-pantanal-wetlands-face-worst-fires-2024-06-12/