2024-06-03 20:12

SAO PAULO, June 3 (Reuters) - Climate change made the recent flooding that devastated southern Brazil twice as likely, a team of international scientists said on Monday, adding that the heavy rains were also intensified by the natural El Nino phenomenon. More than 170 people were killed and nearly 580,000 displaced after storms and floods battered Brazil's southernmost state of Rio Grande do Sul last month, with local authorities describing it as the worst disaster in the region's history. Even in the current climate, experts from the World Weather Attribution group said, the heavy rainfall that submerged entire towns and destroyed critical infrastructure was an "extremely rare" event expected to occur only once every 100 to 250 years. But it would have been even rarer without the effects of burning fossil fuel, the group said. By combining weather observations with results from climate models, the scientists estimated that climate change had made the event in southern Brazil twice as likely and around 6% to 9% more intense. "The climate in Brazil has already changed," said Lincoln Alves, a researcher at Brazil's space research center INPE. "This attribution study confirms that human activities have contributed to more intense and frequent extreme events, highlighting the country's vulnerability to climate change." The El Nino phenomenon, which contributes to higher temperatures in many parts of the world and boosts rainfall and flood risk in parts of the Americas, also played a part in the recent disaster, the scientists noted. The study estimated El Nino increased the probability of the event by a factor of 2 to 5, while making the rainfall 3% to 10% more intense. Failure of critical infrastructure, deforestation and the rapid urbanization of cities such as Rio Grande do Sul's capital Porto Alegre, home to 1.3 million people, helped to amplify the effects of the disaster, the scientists added. Regina Rodrigues, a researcher at the Federal University of Santa Catarina, said well-maintained flood protection infrastructure and appropriated urban planning are necessary to minimize the impact of "such extreme events". Sign up here. https://www.reuters.com/business/environment/climate-change-made-devastating-brazil-floods-twice-likely-scientists-say-2024-06-03/

2024-06-03 20:08

CAIRO, June 3 (Reuters) - Yemen's Houthis say they targeted a military site on Israel's port city of Eilat with a new ballistic missile, the Iranian-backed group's military spokesperson Yahya Saree said on Monday. The Houthi militia, which controls the most populous parts of Yemen and is aligned with Iran, has attacked ships off its coast for months, saying it is acting in solidarity with Palestinians fighting Israel in Gaza. The group targeted the military site "with a ballistic missile 'Palestine' that is being revealed today for the first time, and the operation has successfully achieved its objective," Saree said in a televised address. Sign up here. https://www.reuters.com/world/middle-east/yemens-houthis-say-they-targeted-military-site-israels-port-city-eilat-2024-06-03/

2024-06-03 19:19

June 3 (Reuters) - Poultry companies in the U.S. could be required to adjust how they pay their contract chicken farmers under a rule proposed by the U.S. Department of Agriculture on Monday. The rule is the third proposed by the administration of President Joe Biden to enhance competition in the meatpacking sector, where four companies control between 55% and 85% of the cattle, hog and chicken markets. Under the rule, chicken farmers could no longer have their base compensation docked for how their flocks compare to their peers, and would receive more information to assess risks associated with capital improvements requested by poultry companies. Often, contract poultry farmers for companies, such as Tyson Foods (TSN.N) New Tab, opens new tab and Pilgrim's Pride (PPC.O) New Tab, opens new tab are paid in a "tournament system" that ties their compensation to performance - like how much their chickens weigh, or mortality rate - against other farmers. The farmers are also typically responsible for paying for updates to their chicken barns. "Producers came to me and indicated deep concerns about the ways they were being handled and dealt with in this tournament system," Agriculture Secretary Tom Vilsack said on a call with reporters. The agency previously finalized a rule to enhance transparency between chicken farmers and processors, and another to prohibit retaliation against chicken farmers for whistle-blowing or participating in associations. The USDA expects to release more rules on competition in the livestock sector in the coming months, Vilsack said. The proposed rule announced on Monday will be open to public comment for 60 days. Sign up here. https://www.reuters.com/world/us/biden-administration-proposes-rule-fairer-payment-chicken-farmers-2024-06-03/

2024-06-03 19:04

June 3 (Reuters) - Commodities trader Trafigura Group has hired Russian oil giant Rosneft's former top executive, Otabek Karimov, The Wall Street Journal reported on Monday. Karimov was vice president for commerce and logistics at state-supported Rosneft Oil, before leaving that position when the European Union imposed sanctions on the Russian energy producer in May 2022, the report added. Karimov is from Uzbekistan, and his focus will be on metals, a source close to the company told Reuters. It was unclear what his official role would be, according to the WSJ. "We do not comment on personnel matters," a Trafigura spokesperson said in response to a Reuters request for comment. "Trafigura terminated its long-term offtake contracts for crude oil and petroleum products with state-owned Russian producers in advance of European sanctions coming into effect in May 2022," the Trafigura spokesperson added. Early last month, Trafigura agreed to buy more of UK-based biodiesel firm Greenergy, boosting its position in renewable energy after unveiling plans to acquire the firm's European business roughly two months ago. Sign up here. https://www.reuters.com/markets/commodities/trafigura-hires-rosnefts-former-top-executive-wsj-says-2024-06-03/

2024-06-03 18:42

Canadian dollar weakens 0.1% against the greenback Factory PMI slips to 49.3 in May Price of U.S. oil settles 3.6% lower Ten-year yield falls 10.6 basis points TORONTO, June 3 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Monday, with the currency pulling back from an earlier two-week high, as equity markets fell and investors braced for the potential start of Bank of Canada interest rate cuts. The loonie was trading 0.1% lower at 1.3645 to the U.S. dollar, or 73.29 U.S. cents, after touching its strongest intraday level since May 20 at 1.3604. "It looks like the softer U.S. manufacturing data weighing on equities ultimately has won out on the session and given the CAD a turn back lower," said Amo Sahota, a director at Klarity FX in San Francisco. Wall Street's main indexes fell in choppy trading after data showed that U.S. manufacturing activity slowed for a second straight month in May. Canada is a major producer of commodities, including oil, so the loonie tends to be sensitive to shifts in investor sentiment. U.S. crude oil futures settled down 3.6% at $74.22 a barrel as investors digested the complex deal brokered by producer group OPEC+ to extend various layers of output cuts. Domestic data also showed a slowdown in manufacturing. The S&P Global Canada Manufacturing Purchasing Managers' Index (PMI) edged down to a seasonally adjusted 49.3 in May from 49.4 in April. "I think traders are trying to avoid a directional break in the loonie until they see the BoC policy print this week," Sahota said. "A policy cut is priced in to the swap market, but spot FX is still exposed to volatility on the messaging this week." The BoC will trim its key interest rate by 25 basis points to 4.75% on Wednesday, according to three-quarters of economists in a Reuters poll. Canadian bond yields moved lower across the curve, tracking moves in U.S. Treasuries. The 10-year was down 10.6 basis points at 3.524%. Sign up here. https://www.reuters.com/markets/currencies/c-pulls-back-2-week-high-wall-street-jitters-2024-06-03/

2024-06-03 17:19

Bank of Russia seen holding rates at 16% on Friday Rouble seen at 97.0 vs dollar in 12 months Russia's GDP growth forecast at 3.0% in 2024 Inflation expected to end 2024 at 5.6% This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine MOSCOW, June 3 (Reuters) - The Bank of Russia is likely to keep its benchmark interest rate at 16% on Friday but tighten its rhetoric, a Reuters poll showed on Monday, although a quarter of economists leaned towards a hike as the bank grapples with stubborn inflation. The bank has become more hawkish in recent weeks, repeating several times that rates will need to stay high for a long time to bring inflation down to its 4% target. A disinflationary trend in Russia ended in April, the bank said last week. Eighteen of 24 analysts and economists polled by Reuters in late May and early June predicted that the Bank of Russia would keep its key rate (RUCBIR=ECI) New Tab, opens new tab at 16% on June 7, while the other six forecast a hike to 17%. "I expect the rate to remain at 16% and the rhetoric to tighten," said Irina Lebedeva of Uralsib. "An increase at the July meeting seems more likely." Mikhail Vasilyev, chief analyst at Sovcombank, said a hike was slightly more likely than a hold. "Inflation has stopped slowing, so the Bank of Russia will likely add monetary tightness to cool the increased demand in the economy," he said. "Borrowers should be prepared for money in the economy to remain expensive for a long time and probably, that it will get even more expensive." The consensus forecast showed that analysts no longer anticipate any monetary easing this year, expecting rates to end the year at 16%, up from 13.5% in last month's poll. A cut in the second half of 2024 seems unlikely given that households' inflation expectations increased in May after four months of decline and pro-inflationary risks of labour shortages and higher lending remain, said Anton Pustovoitov of First Asset Management. Analysts' year-end inflation forecast rose to 5.6% from 5.4% in early May, still higher than the central bank's target figure. Annual inflation stood at 7.4% in 2023, down from 11.9% in 2022. The poll showed that economists now expect Russia's gross domestic product to grow 3% this year, marginally higher than last month's poll and above the economy ministry's 2.8% forecast. The ministry's stress scenarios envisage GDP and real income growth almost grinding to a halt next year and the rouble weakening to 107 against the dollar as investments and oil prices fall, according to documents seen by Reuters. Analysts expect the rouble, currently trading at about 92 per dollar, to weaken to 97 over the next year, a slight improvement on the previous poll's prediction. Sign up here. https://www.reuters.com/markets/rates-bonds/poll-bank-russia-keep-benchmark-rate-16-friday-tighten-rhetoric-2024-06-03/