2024-05-22 04:51
SINGAPORE, May 22 (Reuters) - Nearly one in ten properties owned by leading real estate investment trusts (REITs) in the Asia-Pacific region may be at "high risk" of damage from climate change, particularly in coastal regions, a report published on Wednesday showed. REITs, with an estimated global market capitalisation of about $3 trillion, are considered safe havens for long-term investors but damage from climate risks, such as floods and forest fires, could hurt valuations and boost insurance premiums, climate risk consultancy XDI said. "What we are seeing is that the physical risks to built assets increase over time under climate change, and are particularly more pronounced in scenarios where global warming is allowed to accelerate," said lead author Philip Tapsall. Individual companies and communities that stood to be affected need to do more to adapt to the risks, he added. "We still have time to act, so what we are really trying to do is signal the existence of this risk." In its report, XDI analysed more than 2,000 property assets valued totally at $142 billion held by the 20 largest REITs in Japan, Australia, Singapore and Hong Kong. It used global climate models and regional weather data to assess the damage expected as a result of extreme weather. Properties suffering annual damage of more than 1% of their total replacement value were deemed "high risk", with nearly one in ten expected to meet such criteria by 2050. XDI identified coastal inundation as the biggest threat in the Asia-Pacific. Tapsall called for more transparency and disclosure to ensure that companies, their investors and lenders can measure and manage future climate impacts. "The worst thing that could happen is that there is a disorderly withdrawal of capital from vulnerable communities, so what we need is a clear articulation of the risk, and from there to think about the response." Sign up here. https://www.reuters.com/world/asia-pacific/asia-pacific-real-estate-assets-high-risk-climate-change-consultancy-says-2024-05-22/
2024-05-22 04:45
May 21 (Reuters) - A powerful tornado ripped through a small Iowa town on Tuesday, killing multiple people and leaving at least a dozen injured, authorities said. Images from the town of Greenfield show a path of utter destruction, with homes reduced to splinters, debris strewn everywhere and several large wind turbines toppled. "This tornado has devastated a good portion of this town," said Sgt. Alex Dinkla, a spokesperson with the Iowa State Patrol, during an evening press conference in Greenfield. "We can confirm there have been multiple fatalities with this tornado." Dinkla did not provide a death toll, but said it may not be before Wednesday that figures could be provided. At least a dozen people in Greenfield, a town of about 2,000 people, were injured in the twister, Dinkla said. Because the local hospital sustained damage in the storm, those people had to be transferred to facilities in nearby towns. Iowa Governor Kim Reynolds said she would visit Greenfield on Wednesday morning. "While it's too soon to know the storm's full impact, answers will come in the hours and days ahead," Reynolds said in a statement. The governor said the state would provide its full resources to help the impacted areas recover, and reassured residents that support was in place working to provide shelter, food and water, and restore power to thousands of residents. "I've lived here all my life. I'm just praying that everyone was safe, that everybody's safe, and nobody got hurt," Valerie Warrior, a Greenfield resident, told CBS affiliate KCCI TV in an interview, standing near some of the demolished dwellings. "It was scary, very scary." Other video showed smashed vehicles and heavy damage to a gasoline station in Greenfield, the county seat of Adair County, which along with adjacent Adams County appeared to have borne the brunt of the Iowa storms in the southwestern corner of the state. At least one person, a woman in Adams County, was listed as a storm-related fatality, the county's medical examiner Lisa Brown said. She spoke to Reuters by phone but said she could not yet provide more details. Iowa Governor Kim Reynolds declared a "disaster emergency" for 15 counties, including Adair and Adams, allowing state resources to be readily utilized in responding to the storm. Also in Adams County, at least three wind turbines standing about 25 stories high were nearly snapped in half, with one catching fire, KCCI reported. It said several other wind turbines were damaged in Adair County. The National Weather Service had issued tornado warnings and severe thunderstorm advisories for much of Iowa and several other Midwestern states on Tuesday, including parts of Minnesota, and Wisconsin. Earlier in the day, the weather service confirmed at least one tornado over Rollingstone, Minnesota. Sign up here. https://www.reuters.com/world/us/fatal-storms-pummel-iowa-reducing-parts-one-town-rubble-2024-05-22/
2024-05-22 04:32
A look at the day ahead in European and global markets from Kevin Buckland Two of the biggest events of this week are almost upon us, as Wednesday brings an end to the drawn-out two-day news vacuum that has seen markets drift along with little clear direction. The headliner surely is the long-awaited earnings report and accompanying commentary from AI darling Nvidia (NVDA.O) New Tab, opens new tab, which undoubtedly will determine whether the Nasdaq bursts through the all-time highs it set this week - or beats a sharp retreat. AI fever has propelled the Nasdaq to a more than 12% gain this year, while the Philadelphia SE semiconductor index - or SOX - is up a staggering 21.5%, giving both plenty of room to fall. Nvidia's options signal volatility ahead: They're primed for an 8.7% swing in either direction by Friday, equivalent to $200 billion in market cap. Next in the rankings, at least from a global investor's perspective, is the minutes of the Federal Reserve's most recent policy meeting. While the meeting predates the widely welcomed downside surprise in U.S. CPI from last week, it will still be parsed carefully for clues on the likely policy path, particularly as Fed officials have so far refused to turn sanguine on inflation risks. Governor Waller, Vice Chair of Supervision Barr and no fewer than three regional Fed chiefs all urged continued patience overnight, adding to a chorus that has been building by the day. Chicago Fed boss Goolsbee takes the podium later today. The dollar has been content to drift sideways to slightly higher against its major rivals this week . Sterling , though, has shown particular resilience, marking a two-month top on Tuesday. The currency will be tested today by UK CPI data, the biggest event locally. The extent to which price pressures mitigate, or refuse to, in the April figures is likely to tip the odds for a June rate cut, which is currently seen as a coin toss. Unlike at the Fed, Bank of England policy makers have been split on the outlook, with Governor Bailey saying this month that future cuts might need to be more than those markets have priced in, only for chief economist Pill to say the next day that betting too heavily on a June cut would be a bad idea. Deputy Governor Breeden takes part in a panel discussion today. Pill speaks on Friday. Key developments that could influence markets on Wednesday: -UK CPI, PPI, RPI (retail prices) (all April) -FOMC minutes from April 30-May 1 meeting -Nvidia earnings (after market close) Sign up here. https://www.reuters.com/markets/europe/global-markets-view-europe-2024-05-22/
2024-05-22 00:08
TOKYO, May 22 (Reuters) - Japan's Nikkei share average (.N225) New Tab, opens new tab will rise 4.6% by year end, supported by a firm corporate outlook and a solid global economy, according to equity market strategists in a Reuters poll. The Nikkei is forecast to trade at 40,750 at the end of this year, according to the median estimate of 16 analysts polled May 13-21, up from Tuesday's close of 38,946.93. Gains have been capped recently as local companies issued modest earnings forecasts at the peak of earnings season this month. The index has been hovering below 40,000 since the beginning of April after hitting a record intraday high of 41,087.75 on March 22. "Many Japanese companies made conservative annual forecasts but they are expected to raise their outlook toward the end of the year, which will lift the Nikkei," said Tomochika Kitaoka, chief equity strategist at Nomura Securities. "And expectations for further progress in corporate governance reform will also push up share prices," he said. Share buybacks and unwinding cross-shareholders driven by the governance change were behind the index's rally. The Nikkei has risen 16.4% so far this year, following a 28.2% gain in 2023. "The U.S. economy is strong and will remain strong even if (Donald) Trump wins the presidential election," said Yugo Tsuboi, chief equity strategist at Daiwa Securities, who expects the Nikkei to be at 43,000 at the end of the year. An upturn in the global economy will help the Nikkei to hit 44,000 before retreating to 40,500 at the end of the year, said Hikaru Yasuda, chief equity strategist at SMBC Nikko Securities. Uncertainties about the yen's move against the dollar has also hurt sentiment the Japanese stock market, but some strategists said the negative impact of the currency's possible gain against the dollar will be limited. The yen fell to a 34-year low of 160.245 per dollar late last month, before rebounding sharply in what traders and analysts suspected was several rounds of yen-buying intervention by Japanese authorities. "If the yen strengthens, foreign investors may sell the Nikkei. But I expect the Nikkei to be at 40,000 at the end of this year even as the yen rises to 142 yen to the dollar because earnings of Japanese companies are on the rise," said Masayuki Kubota, chief strategist at Rakuten Securities. Strategists also said the Nikkei is unlikely to correct 10% or more in the coming three months. "There are some potential risks, such as a deterioration of the U.S. economy and the chip boom, as well as tensions in the Middle East, but unless these things occur, the Nikkei is unlikely to fall below 35,000," said Shingo Ide, chief equity strategist at NLI Research Institute. (Other stories from the Reuters Q2 global stock markets poll package:) Sign up here. https://www.reuters.com/markets/asia/japans-nikkei-seen-rising-46-this-year-solid-corporate-outlook-global-economy-2024-05-22/
2024-05-21 23:44
May 21 (Reuters) - Republican attorneys general from 20 U.S. states sued the Biden administration on Tuesday, seeking to block new reforms to the U.S. environmental review process for major projects such as transmission lines and wind and solar farms. States including Iowa, North Dakota, Texas and Florida challenged reforms included in a rule finalized in April by the White House Council on Environmental Quality in North Dakota federal court, arguing they go beyond the agency's authority, would increase project costs and unfairly favor clean energy projects. The reforms aim to streamline analysis under the National Environmental Policy Act, or NEPA, a bedrock environmental law that requires environmental reviews for major projects that receive federal permits or funding. NEPA reviews are the frequent focus of litigation, which can delay construction on projects for years. The states said the regulations also require agencies to consider a wider range of a project's impacts during environmental reviews including climate change and environmental justice considerations, which will cause project delays even though those factors are not explicitly detailed in NEPA's text. They said the rule changes will make it more difficult for some projects to receive approvals if they might impact disadvantaged or minority communities. The rule will impose improper bureaucratic roadblocks for projects including highways or fossil fuel power plants "by forcing social, environmental and race-based regulations on developers," the states said in a statement. A White House spokesperson said the rule will speed up project reviews and make sure industry can move forward with key investments and projects, but declined to comment on the lawsuit directly. The reforms build on and expand initial work to reform the NEPA process finalized in 2022, when the Biden administration began rolling back Trump administration changes that made the process less stringent. The earlier Biden administration changes required federal agencies to consider the direct, indirect and cumulative impacts of proposed projects or actions. The White House's Council on Environmental Quality has called the newest reforms a "core element" of Biden's efforts to build out clean energy systems and to rebuild American infrastructure. It said in April that the new reforms are consistent with the agency's legal authority. Sign up here. https://www.reuters.com/legal/republican-led-us-states-challenge-white-house-environmental-review-reforms-2024-05-21/
2024-05-21 23:36
WASHINGTON, May 21 (Reuters) - The U.S. and Saudi Arabia have reached a "near final set of arrangements" for a defense pact that includes a civil nuclear component but obstacles remain for a broader regional deal that would normalize relations between Israel and Riyadh, a senior U.S. official said on Tuesday. The official said the bilateral deal was "more or less complete," but cautioned that certain elements, including a credible pathway to Palestinian statehood and steps on stabilizing war-torn Gaza, still needed to be completed. "It is not done. Nobody here is going to say this is, you know, just right around the corner," the Biden administration official said on condition of anonymity. The official briefed reporters following a Middle East visit by White House national security adviser Jake Sullivan, who held talks with Saudi Crown Prince Mohammed bin Salman and Israeli Prime Minister Benjamin Netanyahu. The U.S.-Saudi agreement is intended as part of a Middle East "grand bargain" to reshape the volatile region that President Joe Biden’s administration is trying to revive after it was derailed by Hamas’ Oct. 7 cross-border attack on Israel and the outbreak of war in Gaza. Some experts have called it a long shot due to the many stumbling blocks. Netanyahu’s resistance to committing to an eventual Palestinian state, something the U.S. is pushing for and the Saudis have demanded, is a major obstacle. U.S. and Saudi negotiators are seeking to complete an accord that would call for formal U.S. guarantees to defend the kingdom as well as Saudi access to more advanced U.S. weaponry, in return for halting Chinese arms purchases and restricting Beijing’s investment in the country, people familiar with the matter have said. “We now have a near final set of arrangements, which will be the bilateral elements of this deal,” the official said. But any Saudi pact is likely to face opposition in Congress, where many lawmakers have denounced Riyadh for intervention in Yemen, moves to prop up oil prices and its role in the 2018 killing of journalist Jamal Khashoggi. The senior official said on Tuesday that the deal would include U.S. civilian nuclear cooperation for the Saudis structured by nonproliferation experts in a "rigorous way." Saudi Arabia, the world's biggest oil exporter, wants U.S. assistance and technology to develop its own nuclear energy program. Negotiators have also been discussing U.S. sales of advanced F-35 fighter jets and other weapons to the Saudis as part of the deal, a second U.S. official said on Monday. On Sullivan’s meetings in Israel, the official said Israeli officials had "incorporated" and were taking seriously many of the concerns raised by the U.S. in planning for the military campaign in the refugee-packed city of Rafah in southern Gaza. But the official declined to elaborate. "We're not here to kind of green-light Israeli military operations," the official added. "We're here to express concerns." Biden has opposed a full-scale Israeli ground offensive in Rafah because of the risk of further heavy civilian casualties. Sign up here. https://www.reuters.com/world/us/us-saudi-defense-deal-with-civil-nuclear-component-nears-completion-official-2024-05-21/
