2024-05-09 12:26

SAO PAULO, May 9 (Reuters) - The death toll from heavy rains in southern Brazil has climbed to 107, local civil defense said on Thursday morning, up from 100 in the previous day, with another 136 people still missing. Storms blistering Brazil's southernmost state of Rio Grande do Sul in the recent days have also left more than 164,000 displaced, according to local civil defense. Sign up here. https://www.reuters.com/world/americas/death-toll-rains-southern-brazil-climbs-107-says-civil-defense-2024-05-09/

2024-05-09 12:24

BRUSSELS, May 8 (Reuters) - European Union ambassadors will hold a first discussion on Wednesday on a planned 14th package of sanctions against Russia over its 2022 full-scale invasion of Ukraine. The European Commission has set out a series of proposals, according to a document seen by Reuters, which are outlined below. It is also proposing 52 new names for its sanctions list. LNG The EU would ban provision of re-loading services by EU facilities for trans-shipment of Russian LNG to third countries. This does not affect imports into the EU. The EU would also ban new investments and the provisions of goods, technology and services by EU operators for the completion of LNG projects under construction such as Arctic LNG and Murmansk LNG. SHIPPING The EU would ban from its ports and locks ships that have contributed to Russia's war effort. This could include the transport of goods generating significant revenue for Russia, goods or technology used in the defence and security sector or shipment of fuels outside the G7 price cap system. CRACKDOWN ON VIOLATIONS EU operators would also be held accountable if non-EU entities they own or control flout sanctions. For sensitive goods that are used on the battlefield or are critical to Russia's military, operators would have to have due diligence systems to identify and mitigate risks of exports to Russia. Failure to do so could leave the operator liable. Such EU operators would have to contractually oblige third parties not to make available in Russia related intellectual property rights or trade secrets and to report any breaches. POLITICAL PARTIES, THINK TANKS, MEDIA EU would prohibit political parties, foundations, think tanks and media providers from receiving financing, donations or other economic benefits from Russia. The proposals also include adding Voice of Europe, RIA Novosti, Izvestija and Rossiiskaja Gazeta to the sanctioned media list. CHEMICALS, MATERIALS The EU would ban the import of helium from Russia and impose further restrictions on exports of goods that could boost Russian industry, including manganese ores and rare-earth compounds, as well as excavating machinery and electrical equipment. DIAMONDS Clarification that rough diamonds imported from Russia before Jan. 1 and polished diamonds imported before March 1 or Sept. 1, according to weight, would not be covered by a ban. TRANSPORT Proposal is to tighten prohibition on Russian flights to include any aircraft where a Russian person or entity determines place or time of landing and places obligation on operators to give authorities details of plane ownership and, in some cases, passengers. It also tightens rules on transport of goods by road to exclude companies in which Russian persons or firms own 25% or more. Sign up here. https://www.reuters.com/markets/europe/eu-target-lng-ships-violations-new-russia-sanctions-package-2024-05-09/

2024-05-09 12:16

DEKALB, Illinois, May 9 (Reuters) - Falling crop prices are leaving agriculture equipment sellers with an excess of unsold tractors and combines. To cope with the surplus, dealers are discounting machines, suspending new orders, and even auctioning off equipment at reduced prices. The slower equipment sales are a knock-on effect of corn and soy prices dropping to more than three-year lows as U.S. farm income plummets and equipment makers and dealers are forced to pivot quickly after a period of booming business. Reuters interviewed ten equipment dealers, mostly in the Midwest, as well as farmers and analysts, who said low crop prices combined with persistently high interest rates are deterring farmers from purchasing machinery. As farmers make fewer purchases, inventories of equipment are swelling, cutting into profits for dealers and big manufacturers alike. Manufacturers Deere (DE.N) New Tab, opens new tab and CNH Industrial (CNHI.N) New Tab, opens new tab struggled to keep up with the strong demand for tractors in 2022 when farm income hit a record high and pandemic assistance payments gave farmers extra money to upgrade their fleets. Now both expect slower sales to hit their bottom line this year. Josh Gruett, dealer principal at Waupun Equipment in Waupun, Wisconsin, which sells farm, construction and other equipment, said his inventory has risen 30% to 35% since the end of 2023. The excess of unsold machinery prompted Gruett to halt new orders from companies including CNH, AGCO (AGCO.N) New Tab, opens new tab, and Polaris in hopes of balancing supply and demand, he said. In April, inventory levels of high-horsepower tractors (300 and above) in the U.S. surged by almost 107% year-over-year, with combine inventory experiencing a 17.63% increase, according to Sandhills Global, a market research firm specializing in tracking used inventory for industrial manufacturers. SLASHING PRICES Chris Tanner, a fourth-generation farmer, said some dealerships in his town of Norton, Kansas, have slashed prices up to 30% with an added incentive of zero percent interest to move machinery off their lots. "They're heavily discounting combines and tractors -- but after coming through a drought and experiencing poor prices we don't have the money to spend," Tanner said. The pain has also spread to those who sell spare parts. Guy Robinson, is a parts manager at Dekalb Implement Company, which sells Deere equipment in Dekalb, Illinois During the peak years of the pandemic, Robinson said, the combination of supply chain troubles and rising demand made getting everything from parts to equipment to farmers "a nightmare." And then demand began falling off in late 2022, he said. About 30 miles south of Robinson's dealership, Aaron Rogers, retail location manager at AHW, another Deere dealer in Somonauk, Illinois, said zero or low percentage financing is a popular way to try to bring in customers. "If you can get a good interest rate, that's what's driving the market right now," he said. Offering lower financing rates to sell inventory can result in a loss for dealers, but carrying unsold machinery can prove costlier. Manufacturers give dealers free financing on equipment for a limited period while they sell it, but once that expires, dealers have to pay interest on their unsold inventory to manufacturers. With fewer sales forecast, equipment dealers are feeling pressure to auction off equipment "right away" to preserve margins, said Casey Seymour, a sales consultant for dealers. "Some of the stuff that is being put to auction is because dealers can't afford to keep the floor plan," Seymour said. "They can't have millions of dollars worth of inventory sitting around at a floor plan [with a] 7.5% interest rate." Particularly, inventory levels have been a big concern in the Midwest grain belt, said Ryan Dolezal, the manager of TractorHouse, a site for selling new and used farm equipment. "We do not see the inventory levels issues like we do in Midwest markets," he said of specialty crop equipment compared to row crop machinery. Used agriculture machinery inventory, the bulk of machinery sold in the United States, is on a steady increase that is forcing dealers to auction equipment at a lower price point, said Mitch Helman, a sales manager at Sandhills Global. "For planters there's a 70% gap between auction and retail and that's insane. A spread this high has not been observed since May 2015," he said, referring to a time when grain oversupply was pummeling farmer income. Deere reports earnings on May 16. In February, the company announced plans to cut production and warned shareholders inflation would make farmers reticent to finance equipment purchases. Texas-based farmer, Scott Born said given his tighter budget, he's forgoing buying new or used equipment for the remainder of the year. "We have to try to limp by without major repairs -- it's tough especially since (equipment and fertilizer) has gone so much higher in just a few years." (This story has been corrected to show that the source was referring to specialty equipment compared to row machinery, in paragraph 20. It also corrects to show that the source was referring to planters, in paragraph 22) Sign up here. https://www.reuters.com/markets/commodities/too-many-tractors-boom-times-fade-farm-equipment-piles-up-2024-05-09/

2024-05-09 12:00

LONDON, May 9 (Reuters) - The Bank of England took another step towards lowering interest rates on Thursday, as a second official backed a cut and Governor Andrew Bailey said he was "optimistic that things are moving in the right direction". Below are comments from a news conference with BoE policymakers: BAILEY ON CUTTING BANK RATE BEYOND MARKET EXPECTATIONS "It's likely that we will need to cut bank rates over the coming quarters and make monetary policy somewhat less restrictive over the forecast period, possibly more so than currently priced into market rates. "This will be consistent with ensuring that inflation does not fall noticeably below target at the end point of the forecast." BAILEY ON RESTRICTIVE POLICY "One cut, we're probably assuming it's a small cut obviously, would still leave us with restrictive monetary policy." BAILEY ON A POSSIBLE RATE CHANGE IN JUNE "Before our next meeting in June, we will have two full sets of data for inflation activity and the labour market and that will help us in making that judgement afresh, but in saying that, Let me be clear, a change in Bank Rate in June is neither ruled out nor a fait accompli." BAILEY ON A RETURN TO MORE NORMAL TIMES: "(The) absence of data surprises is an indication that we're now getting back to more normal times, at least compared to the highly unusual period we've been living through with a global pandemic and a major war in Europe. "Risks to the global economy remain including from the conflicts in the Middle East. But so far, economies have adjusted to withstand those risks." BAILEY ON INFLATION: "Inflation has now fallen to just about 3% and we expect it to be close to the target in the coming months. That's encouraging." "The inflation dynamics of the UK, are different to the U.S. The U.S. is facing a different situation. It's got stronger demand, and therefore I think it is important to make that distinction. "I think we've seen some response in markets to that of late where there have been some, some movement, some decoupling." BEN BROADBENT ON INFLATION: "For my part, I probably look a little more closely at services inflation than wages, at least over very short periods of time." Sign up here. https://www.reuters.com/world/uk/bank-england-policymakers-speak-after-rates-held-525-2024-05-09/

2024-05-09 11:49

China April oil imports rise, trade balance data improves Cooling US job market could spur interest rate cuts Bank of England moves toward lowering interest rates US gasoline, diesel demand at weakest seasonal levels since 2020 NEW YORK, May 9 (Reuters) - Oil prices edged up to a one-week high on Thursday on data from China and the U.S. signaling demand in the world's two biggest crude-consuming nations could climb. Brent futures rose 30 cents, or 0.4%, to settle at $83.88 a barrel, while U.S. West Texas Intermediate crude rose 27 cents, or 0.3%, to settle at $79.26. That was the highest close for both crude benchmarks since April 30. Limiting those price gains was U.S. energy data showing gasoline and diesel demand last week was the weakest since the 2020 coronavirus pandemic. "Oil prices traded in a very tight range. There's not a lot of oil news out there. The geopolitical news from the Middle East is in the background and it's unclear," Phil Flynn, an analyst at Price Futures Group, said of the small changes in crude prices. In China meanwhile, crude oil imports rose on the previous year in April and exports and imports returned to growth last month, indicating an increase in demand at home and overseas as Beijing moves to shore up a shaky economy. "The improved China trade balance data added to the upside momentum," said Tina Teng, an independent market analyst. In the U.S., the number of new claims for unemployment benefits rose last week to the highest in more than eight months, further evidence that the labor market was cooling. Analysts projected that ebbing labor market momentum puts two interest rate cuts from the U.S. Federal Reserve this year back on the table. Lower rates would reduce borrowing costs and could spur economic growth and demand for oil. The Bank of England took another step toward lowering interest rates as a second official backed a cut and Governor Andrew Bailey said he was "optimistic that things are moving in the right direction". MIDDLE EAST TURMOIL Israeli tanks and warplanes bombarded areas of Rafah, Palestinian residents said, after President Joe Biden said the U.S. would withhold weapons from Israel if its forces mount a major invasion of the southern Gaza city. "If the Biden boycott spurs the Israelis to sign a ceasefire deal with Hamas, then WTI crude oil could potentially squeeze another $10 (a barrel) of geopolitical risk premium out of the market," Bob Yawger, director of energy futures at Mizuho, said in a note. "However, if Iran becomes emboldened by the U.S. stance and jumps back into the fray after keeping (a) low profile for weeks, then the market could rally back to multi-month highs," Yawger added. In response to Israel's latest operation, the leader of the Houthis in Yemen said the Iran-backed group, which has already disrupted shipping in the Red Sea, would target ships of any company related to supplying or transporting goods to Israel. Sign up here. https://www.reuters.com/business/energy/oil-rises-us-crude-storage-draw-fed-rate-cut-hopes-2024-05-09/

2024-05-09 11:47

KYIV, May 9 (Reuters) - Ukraine's parliament voted on Thursday to sack the deputy prime minister for infrastructure and the farm minister, removing two senior officials who have held key portfolios for the wartime economy. A majority of 272 lawmakers voted to dismiss Deputy Prime Minister Oleksandr Kubrakov, who oversaw the reconstruction programme and championed efforts to set up a Black Sea shipping lane during a de-facto Russian blockade. The exit of the 41-year-old comes amid plans to break up his powerful ministry into two separate portfolios, lawmakers said. Kubrakov said on Facebook that his dismissal had not been discussed with him in advance of the vote and that he had not been given a chance to defend his tenure in a presentation to parliament. Parliament also accepted the resignation of Agriculture Minister Mykola Solsky who is being investigated for alleged involvement in an illegal acquisition of state-owned land. The 44-year-old denies the allegations. It was not immediately clear who would replace the two ministers. Yaroslav Zhelezniak, a senior lawmaker, said Kubrakov would not be reappointed. The government now has five vacant ministerial positions, said Oleksiy Honcharenko, a lawmaker from the opposition European Solidarity party. There are over 20 ministerial portfolios in the current government. Ukrainian government officials have repeatedly said they plan to reform the government's structure and cut the number of ministries as the country faces a huge budget deficit with most state revenues allocated towards defence efforts. As Zelenskiy approaches the end of his five-year term this month and with no elections scheduled because of the war, some Ukrainian politicians have called on him to form a government of national unity instead. Sign up here. https://www.reuters.com/world/europe/ukraine-deputy-pm-charge-reconstruction-ousted-amid-ministry-reform-2024-05-09/