2024-05-25 09:01

G7 finance chiefs reaffirm long-held commitment on currencies Group has warned against excess volatility, disorderly FX moves Japan welcomes G7 decision to reaffirm FX commitment Statement comes in wake of more yen jawboning from Japan STRESA, Italy, May 25 (Reuters) - Finance leaders of the Group of Seven (G7) advanced nations on Saturday reaffirmed their commitment to warn against excessively volatile currency moves, language Japan sees as a green light to intervene in the market to arrest rapid falls in the yen. The agreement followed new verbal warnings from Japan's top currency diplomat Masato Kanda, who told reporters on Friday that Tokyo was ready to step into the market "any time" to counter speculative yen moves that hurt the economy. "We reaffirm our May 2017 exchange rate commitments," the G7 ministers said in a statement on Saturday after their meeting in Stresa, Italy, in a nod to Japan's call on the group to reiterate its view on the need for currency market stability. The G7 group has a long-standing agreement that excessive volatility and disorderly currency moves are undesirable, and that countries have authority to take action in the market when exchange rates become too volatile. Tokyo has argued this agreement gives it freedom to intervene in the currency market to counter excessive yen moves. "We're grateful the G7 reaffirmed its shared understanding on exchange rates. It's also reassuring for markets," Kanda told reporters on Saturday after the finance leaders' meeting. The G7 language on exchange-rate commitment was unchanged from the group's previous statement issued on April 17, when the finance leaders met in Washington on the sidelines of the International Monetary Fund meetings. Two weeks after the April G7 meeting, Japan is believed to have intervened in the currency market to prop up the yen to arrest what authorities described as excessive, speculative currency moves. While this kept the yen from falling below the psychologically important 160-to-the-dollar line, the Japanese currency has yet to stage a clear rebound. It stood at 156.98 to the dollar on Friday, not far from the more than three-week low of 157.19 touched on Thursday. There is also uncertainty on whether the G7 countries will tolerate further forays by Japan into the exchange-rate market. Speaking in Stresa, U.S. Treasury Secretary Janet Yellen said on Thursday that currency interventions should not be a "routine" tool to address imbalances and should be used only rarely and in a well-communicated way. The finance leaders' communique of May 2017, which was reaffirmed on Saturday, said "excess volatility and disorderly movements in exchange rates can have adverse implications for economic and financial stability". But it also called for exchange rates to be determined by markets, and that members "consult closely in regard to actions in foreign exchange markets." Kanda, who oversees Japan's currency policy as vice finance minister for international affairs, said on Saturday he was in "extremely close contact" with his U.S. counterparts on a daily basis including on markets. The yen has lost 11% against the dollar this year on expectations the U.S. Federal Reserve will be in no rush to cut interest rates, which would keep a wide divergence between U.S. rates and Japan's ultra-low rates. Markets are focusing on whether Japan will intervene again to arrest a stubbornly weak yen, which has become a headache for policymakers as it hits consumption by inflating the cost of raw material imports. Sign up here. https://www.reuters.com/business/g7-reaffirm-commitment-warning-against-excess-fx-volatility-2024-05-25/

2024-05-25 08:37

ISIOLO, Kenya, May 25 (Reuters) - At least five people were killed and several others were missing after an informal gold mine collapsed in northern Kenya, officials and local media said. The bodies of five miners have been recovered from the Hillo artisanal mine, and another three people were unaccounted for, regional commissioner Paul Rotich told Reuters by telephone late on Friday. "Reports from rescuers, police and our chiefs suggest at (least) eight casual miners were inside the mining ground when the walls collapsed and buried them alive," Rotich said Two injured miners were taken to hospital, Kenyan broadcaster NTV reported on Saturday morning. "The place caved in because of the rains," Marsabit county commissioner David Saruni told NTV. Hundreds of people have been killed in floods and landslides across the country following weeks of torrential rains. Mining had continued despite authorities closing the mine near the Ethiopian border in March, after several people were killed in clashes between local communities over access to the area, Citizen TV reported. Sign up here. https://www.reuters.com/world/africa/five-killed-after-informal-gold-mine-collapses-northern-kenya-2024-05-25/

2024-05-25 06:41

NEW DELHI, May 25 (Reuters) - Indian voters braved temperatures of nearly 45 degrees Celsius (113 Fahrenheit) in parts of the country as they headed to polling stations in the penultimate phase of the world's largest election on Saturday. More than 111 million people in 58 constituencies across eight states and federal territories are eligible to vote in the general election's sixth phase, which recorded turnout of 49.2% at 3 p.m., with three hours of polling left. The overall turnout in the same phase of the last election in 2019 was about 63%. Among those casting their ballots early on Saturday in the capital New Delhi were Rahul Gandhi, leader of the opposition Congress party and the main rival of Prime Minister Narendra Modi - whose Hindu-nationalist Bharatiya Janata Party (BJP) is expected to win a third consecutive term. Gandhi was accompanied by his mother, Sonia Gandhi, and sister, Priyanka Vadra. Voting in the elections began on April 19 and will conclude on June 1, with results due on June 4. Paramedics were on hand with oral hydration salts at polling stations in Delhi, where mist machines, shaded waiting areas and cold water dispensers have also been installed by the Election Commission due to concerns about the heat. "We hope that people will overcome the fear of the heatwave and come and vote," Delhi Chief Electoral Officer P. Krishnamurthy told Reuters. Modi also urged people to "vote in large numbers" in a message on social media platform X on Saturday. It was not clear which party would gain from a lower turnout. The temperature in the capital hovered around 42C (107.6F) but felt like 49C (120.2F) at 2 p.m., the weather department said, prompting many voters to question why polls were not held when the weather was "more conducive". At 3 p.m., turnout in the city stood at 44.5%. At a school in the Trilokpuri area that was being used for polling, sheets and tarpaulin were strung up in the courtyard to provide shade to voters queuing up despite the heat. "If we sit at home saying it is hot outside, who will vote?" said housewife Bhuwneshwari Pillai, 32, fanning herself with a sheet of paper and mopping her brow with a towel. In some parts of the northern state of Haryana, people living near polling booths also pitched in to help voters beat the heat, handing out free cold drinks and dried fruits. VOTERS' CONCERNS Price rises and a lack of jobs were two of the major issues mentioned by voters to Reuters on Saturday when asked about the factors that determined their vote. "Our youth are unemployed, the prices of essential commodities have sky-rocketed. We have come to vote for the candidate who resolves these issues," said Ghulam Qadir Chouhan, 75, in the northern state of Jammu and Kashmir's Anantnag region. In Delhi, Nishu Singh, 43, who travelled from a neighbouring town to vote, said her ballot was "for the country's development". For social scientist Savitha Jha, who was voting in Haryana's business hub Gurugram, which shares a border with Delhi and saw Hindu-Muslim clashes last year, the election was a chance to ensure security for all. "I'm voting for internal security and for external security of the nation and everyone in it, not just any one community," she said. While the heatwave was a concern in Delhi, a cyclone that is expected to hit land on Sunday was being closely watched in eastern Odisha and West Bengal, parts of which are also voting on Saturday. Sign up here. https://www.reuters.com/world/india/indias-massive-election-faces-heatwave-challenge-penultimate-phase-2024-05-25/

2024-05-25 02:35

SYDNEY, May 25 (Reuters) - More than 300 people and over 1,100 houses were buried by a massive landslide that levelled a remote village in northern Papua New Guinea, local media reported on Saturday. Hundreds are feared dead in the landslide that hit Kaokalam village in Enga Province, about 600 km (370 miles) northwest of capital Port Moresby, around 3 a.m. on Friday (1900 GMT on Thursday). The landslide in the Pacific nation north of Australia buried more than 300 people and 1,182 houses, the Papua New Guinea Post Courier said, citing comments from a member of the country's parliament, Aimos Akem. Akem did not immediately respond to Reuters request for comment via social media. More than six villages had been impacted by the landslide in the province's Mulitaka region, Australia's Department of Foreign Affairs and Trade (DFAT) said on Saturday. "Australia’s High Commission in Port Moresby is in close contact with PNG authorities for further assessments on the extent of the damage and casualties," a DFAT spokesperson said in a statement. The Australian Broadcasting Corp reported on Saturday that four bodies had been retrieved from the area after emergency teams reached the sparsely populated area, where the death toll is expected to rise. The landslide has blocked highway access, making helicopters the only way to reach the area, the broadcaster reported. Social media footage posted by villager Ninga Role showed people clambering over rocks, uprooted trees and mounds of dirt searching for survivors. Women could be heard weeping in the background. Prime Minister James Marape has said disaster officials, the Defence Force and the Department of Works and Highways were assisting with relief and recovery efforts. Sign up here. https://www.reuters.com/world/asia-pacific/more-than-300-buried-papua-new-guinea-landslide-local-media-says-2024-05-25/

2024-05-25 02:11

GUATEMALA CITY, May 24 (Reuters) - Guatemalan President Bernardo Arevalo said on Friday that China had rejected entry to some shipments from the Central American nation, speculating that this could be due to Guatemala's diplomatic relationship with Taiwan. The day before, Guatemala's exporters association had reported that at least seven containers of macadamia nuts had been unable to enter China and that traders had been told Guatemalan macadamia and coffee would be denied entry. Guatemala is one of only 12 countries that has diplomatic ties with Taiwan. Beijing claims the democratically-governed island as its own territory, which Taiwan rejects. "As you know, the inauguration of the new Taiwanese government, which Guatemala has ties with, was a few days ago," Arevalo said in a live question-and-answer session on TikTok. "There could be some dispute with China related to this." Guatemalan Foreign Minister Carlos Ramiro Martinez attended the inauguration of Taiwanese President Lai Ching-te on Monday. Arevalo said the Guatemalan government was working to resolve the issue but had not received a response from China. Guatemala exported $82 million worth of goods to China last year, according to the exporters association. Lai and Arevalo spoke via videoconference on Tuesday, with Lai thanking him for his staunch support and calling for the further strengthening of ties, according to a readout from Taiwan's presidential office. Lai invited Arevalo to visit Taiwan, while Arevalo invited Lai to come to Guatemala, the statement added. Then-President Tsai Ing-wen went to Guatemala last year, a week after neighboring Honduras severed diplomatic relations with Taipei in favor of Beijing. Sign up here. https://www.reuters.com/world/chinas-rejection-guatemalan-shipments-could-be-related-taiwan-ties-guatemala-2024-05-25/

2024-05-24 22:26

May 24 (Reuters) - Power demand in Texas broke the record for the month of May for a second time this week on Friday as prices soared ahead of the U.S. Memorial Day long weekend with homes and businesses cranking up their air conditioners to escape a heat wave. The Electric Reliability Council of Texas (ERCOT), which operates most of the state's power grid for 27 million customers, said the system was operating normally with enough supply available to meet expected demand over the next week. ERCOT said power demand soared to a preliminary 72,695 megawatts (MW) on Friday, which would top the current record for the month of May of 72,261 MW set last Monday. ERCOT projected usage would break that new record on Monday, Memorial Day, when it forecasts a peak above 76,500 MW. The grid's all-time peak was 85,508 MW on Aug. 10, 2023. Analysts expect ERCOT electric use will top that all-time high this summer with economic and population growth in Texas and demand for power from data centers, artificial intelligence and cryptocurrency mining rising fast. One megawatt can usually power about 800 homes on a normal day but as few as 250 on a hot summer day in Texas. In the spot market, next-day power prices at the ERCOT North Hub , which includes Dallas, soared to a two-week high of $141 per megawatt hour (MWh) for Friday, up from $21 for Thursday, according to pricing data on the LSEG terminal. That compares with an average of $31 per MWh so far this year, $80 in 2023 and $66 over the prior five years (2018-2022). Day-ahead prices on the ERCOT website, meanwhile, soared to $654 per MWh for one hour on Friday evening. "May-to-date real-time pricing is 50% higher than in any year since 2010 (except for the 2022 natural gas price blowout). This results in more inefficient natural gas generators chewing through more gas ... to keep the lights on," analysts at consultancy EBW Analytics Group said in a note. RECORD-TYING HEAT High temperatures in Houston, the state's biggest city, will hold at 95 degrees Fahrenheit (35 Celsius) on Friday and Saturday before rising to 96 on Memorial Day Monday, according to meteorologists at AccuWeather. The normal high in Houston at this time of year is 88 F (31 C). AccuWeather said the forecast high of 95 F for Friday would tie the record for the day set in 1955. ERCOT projected supplies would exceed demand by 5,400 to 42,300 MW over the next week with the 5,400 MW low expected during one hour in the evening of May 26 after the sun goes down and solar panels stop working. That comfortable level of supply is higher than ERCOT forecast earlier on Friday and assumes nothing changes. But things always change - power plants and transmission lines shut and return to service, weather forecasts change and storms cause outages. Sign up here. https://www.reuters.com/business/energy/texas-power-prices-soar-ahead-record-breaking-memorial-day-weekend-2024-05-24/