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Indian shares rise on rupee strength, but war concerns drag down weekly performance
The rupee rose on Thursday, reversing the previous day's loss. However, fading hopes of an accelerated end to the Iran - war have extended the losing streak into a sixth consecutive week. The Nifty 50 ended the session 0.15% higher, at 22,713.1. The Sensex gained 0.25% and closed at 73319.55, up from a fall of more than 2% in the previous session. The rupee rose 1.8% against the U.S. dollar after reaching a record low during the previous session. The Nifty 50 and Sensex both fell by 0.5% and 0.4% respectively for the holiday-shortened weekend as the Middle East conflict?dragged along and Brent crude climbed to $109 a barrel after U.S. president Donald Trump vowed aggressive?strikes against Iran. India's manufacturing growth has slowed down to its lowest level in four years, and the government has raised prices for commercial LPG and jet fuel, raising fears that an extended energy shock will affect growth and inflation. U.R. Bhat, co-founder of Alphaniti?Fintech in Mumbai, says that traders probably covered short positions on Thursday to prepare for the long weekend. This led to an intraday recovery. Bhat is the co-founder and CEO of Alphaniti Fintech in Mumbai. Twelve out of 16 major sectors declined this week. Mid-caps fell 0.8%, while small-caps gained 0.2%. Bank stocks fell 1.4% on fears that curbs on forex speculating could result in trading losses. This is the longest losing streak since October 2023. Bloomberg News reported that the Trump administration could impose tariffs against drugmakers who have refused to lower their prices in the U.S. Bharat electronics rose by?4.2% and led defence stocks to rise 2.4% after India approved proposals for $25 billion in military purchases. The Indian financial markets are closed on Good Friday.
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Panetta, ECB's Panetta, warns that the energy crisis is a concern for financial stability
The tensions on the energy market due to the U.S. and Israeli 'war on Iran' are of concern because they could have a negative impact on the financial stability. This was the opinion of Governing council member, Fabio Panetta. Panetta, speaking at a conference held in Rome, said that changes in the risk perception of global investors could lead to rapid pressure on government bonds. This is especially true given the high levels public debt in several economies such as Italy. He said that there are signs of this trend, including the increase in the value of the dollar and the pressure on interest rates over the long term. Capital outflows in emerging markets also reflect a preference for safe assets. The Foreign Minister Antonio Tajani said that the war would increase migration if the Strait of Hormuz remained blocked. This is because the Strait of Hormuz is normally the main conduit for oil, gas and fertilisers destined for Africa. Panetta also warned investors about leverage and liquidity levels in nonbank financial institutions. Investors are growing increasingly concerned about the U.S. credit sector. Panetta stated that even if the Gulf War were to end quickly, a return of normal production would still take time. He cited more pessimistic ECB scenarios, stating that the energy supply 'would recover by the fourth quarter or 2027. Energy prices pushed up the inflation rate in the Eurozone to 2.5% from 1.9% in Feb. Panetta stated that these data "highlights the intensity and the speed with which energy shock is being transmitted". These effects will likely be reflected also in the data of the coming months. "At the same time, the trend of leading indicators, notably the 'decline in confidence among households, indicates a possible slowdown within the real economy." Panetta and Tajani both said that despite the dim outlook, Italy is in a better position than it was when Russia began its war against Ukraine in 2022. This is because investors have a more positive perception of Italy's finances. Panetta stated that "this has kept us safe thus far." (Reporting and editing by Emelia Sithole Matarise, Kevin Liffey, and Giuseppe Fonte)
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The Financial Times reports that Britain's Ofwat plans to waive Thames Water penalties until 2030.
The Financial Times reported on Thursday that Thames Water was expected to reach an agreement with regulator Ofwat, which would allow 'Britain’s largest water provider' to avoid any new fines up until 2030. According to the newspaper, the water regulator will accept "undertakings", instead of financial penalties, as part of the rescue agreement currently being discussed with the company and its senior creditors. The performance targets for pollution, leakage, and other areas will be either suspended or substantially modified, the statement said. The FT reported that Thames Water is still facing?Environment Agency?fines and legal actions, without specifying how much the fines are. The newspaper stated that Ofwat should consult the public for three months before approving any agreement. Could not verify the report immediately. Thames Water in Britain has not responded to a comment request. Ofwat has not commented on the FT article, but says it is working with London & Valley Water to improve its operational performance and financial stability for customers and the environment. Thames Water has had to fight off financial collapse for the past 20 years. It has debts of almost 20 billion pounds ($26.47billion) in a sector where price increases are limited. A group of creditors of the company has offered up to 6,55 billion pounds in new debt and 3.35 billion pounds of equity as part of the current rescue plan. Thames Water is likely to be placed under the special administration regime of the government, which is a temporary nationalisation.
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Asian governments spend billions to offset the oil price shock
Asian governments spend billions in subsidies to protect consumers from rising oil prices due to the U.S. - Israeli war against Iran. Here are some steps that governments in Asia have taken to reduce the amount of oil coming from the Middle East. The Japanese government is 'using 800 billion yen (5.02 billion dollars) from reserve funds to finance subsides aimed at maintaining gasoline prices at around 170 yen per litre. This would cost up to 300 billion yen a month. SOUTH KOREAN In late March, the South Korean?budget?ministry proposed a supplementary budget of $26.2 trillion won to help low-income earners and young people as well as companies to combat high oil prices. This is the second additional budget under President Lee Jae Myung's administration in less than one year. The budget is expected to be approved by the Parliament on April 10. INDONESIA Jakarta allocated 381.3 trillion rupiah (22,4 billion dollars) to energy subsidies as well as compensation to state energy company Pertamina & utility company PLN to reward them for their efforts in keeping fuel prices and electricity tariffs at a reasonable level. Indonesian authorities have maintained the subsidised price of fuel as they assess price adjustments for non-subscribers. The government also set a 50-litre limit per car per day on fuel sales. Jakarta plans to also implement a work-from-home policy on Fridays for civil servants, and reduce the number of days that it offers free meals to just five to save trillions in fuel subsidies. PHILIPPINES The Philippine Energy Ministry said that it has activated a 20 billion Peso ($329.75 Million) emergency fund in order to improve fuel security. The government will purchase up to 2,000,000?barrels to support the domestic supply, as well as refined products and liquefied petrol gas. THAILAND Ekniti Nitithanprapas, Finance Minister of the new government, said that measures to reduce the economic impact of the rising oil price will be proposed at the first cabinet meeting scheduled for April 6. Along with other measures, the government is planning a reduction in oil taxes, as well as a guarantee of borrowing for a fund to support oil subsidies. Anutin Charnvirakul, the Prime Minister, ordered last month that civil servants conserve energy in office buildings and to reduce electricity usage. He also asked for public cooperation by encouraging carpooling. VIETNAM Vietnam has suspended the environmental protection tax and special consumption tax on gasoline, jet fuel and diesel until April 15, with the possibility of an extension until June 30. According to the finance ministry, the suspension of taxes would?reduce state revenue by 7.2 trillion Dong ($273.34 millions) per month. MALAYSIA Malaysia spends 4 billion ringgit (992.56 millions dollars) per month, an increase from 700 million to maintain a fixed price for a commonly used transport fuel, and cash assistance?to certain diesel vehicle operators. As part of a?measure to reduce energy costs, employees at government ministries and agencies as well as state-linked firms will begin working from home in this month. India has reduced excise duty on petrol and Diesel, which will result a loss in revenue of $749.10 million a fortnight. It also imposed windfall taxes on aviation and diesel exports. AUSTRALIA Anthony Albanese, the Prime Minister of Australia, announced that the government will halve excise taxes on diesel and fuel for three months and eliminate the heavy road user fee. This move is expected to cost the Australian government A$2.55billion ($1.76billion). Australia will also offer up to A$1billion in interest-free loan to businesses that are critical, such as transport operators and fertiliser manufacturers. NEW ZEALAND New Zealand announced that it will provide a temporary financial assistance of?NZ$50 (28.57 USD) per week for low-income families from April, as the conflict in the Middle East increases fuel prices and puts pressure on household budgets. Nicola Willis, the Finance Minister of New Zealand, said that the policy would cost NZ$373m if it was implemented for a full year. (1 dong = 26,341 rupiah = 17,018 rupiah = 60.6520 Philippine Pesos = 4.0300 Ringgit = 159.3900 Yuen = 1 = 159.3900 Dollars = 1 = 1.4529 Australian Dollars
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UK hosts talks with 35 countries about reopening Strait of Hormuz
On Thursday, Britain will host a meeting to discuss the formation of a 'coalition of nations' that would explore how to reopen Strait of Hormuz after 'U.S. Donald Trump has said that other countries should be responsible for securing this vital waterway. Around midday, British Foreign Minister Yvette Cooper, will preside over the virtual meeting in London of 35 countries, including France, Germany Italy, Canada, and the United Arab Emirates, to explore ways of restoring freedom of navigation. The United States is not expected to attend. The meeting comes after Trump stated in an address to the nation on Wednesday night that the Strait of Hormuz could open "naturally". It was up to the countries who depended on the waterway to make sure it was open. Focus on Mines, Protect Tankers Iran has shut down the Strait in response to the U.S. and Israeli strikes that began late February. As energy prices rise, governments all over the world are focusing on reopening this 'waterway. The British Prime Minister Keir starmer stated on Wednesday that the meeting will assess "all feasible diplomatic and political steps" to restore freedom of navigation after a ceasefire is reached. European countries initially rejected Trump's request to send their navy to the region out of fear that they would be drawn into the conflict. According to European officials, they are concerned about the impact of the increasing cost of energy on global economic growth. They have therefore formed a coalition in order to find ways to reopen this waterway once a ceasefire has been agreed. Officials said that the talks on Thursday would be the 'first formal' meeting of the group, before further discussions with military planners in the coming weeks. According to a European official, the first phase of any plan to reopen the Strait should be "on ensuring that the waterway is free of mines", followed by a phase protecting tankers as they cross the area. Starmer stated that reopening of the waterway would "not be easy". It would also require "a united front of military strength, diplomatic activity and working with the shipping industry". Trump said that on Wednesday, other countries who use the Strait of Hormuz "should build up some delayed courage and just grab it". He said, "Just take it. Protect it. Use it for yourself." Andrew MacAskill, Andrew Heavens and Andrew MacAskill (Reporting)
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Sources say that China has asked independent refiners in the country to maintain fuel production amid war disruption.
Sources familiar with the matter told Reuters that China's state planner had instructed independent refiners to not reduce their run rates below those of the last two years. This was done to protect domestic fuel supplies. This move is in response to the sharp rise in oil prices in April due?to a U.S./Israeli war against Iran and persistently low domestic fuel demand. Sources said that the?National Development and Reform Commission conveyed the message during a meeting this week with independent refiners. The NDRC didn't immediately respond to a faxed?comment request. Sources added that if the?import quotas for crude oil are not met, they could be reduced. China regulates oil imports through its independent refiners (often called teapots) under a quota-based system. According to Oilchem, an independent consultancy, the average capacity for refineries in Shandong's teapot hub was 53.66% by 2024, and 48.89% last year. According to Energy Aspects, China's teapots were operating at 55% capacity between February and March. According to Zhang Yuxin, a refined products analyst at Horizon Insights, the firm had originally expected teapots' operating rates to drop by 10% in April. However, it now expects them to be roughly unchanged from March. About a quarter of China's refinery capacity is accounted for by independent refiners. China last month stopped?refined oil exports. The?curbs extended into April to prevent a fuel shortage. (Reporting from Siyi Liu in Singapore, Trixie Yap in Beijing, and Florence Tan at the Singapore newsroom. Editing by Tony Munroe and Jan Harvey.
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Storm hits Greece killing 1, flooding homes, and disrupting travel
After heavy rain and gale-force wind battered Greece on Thursday, authorities were rushed to repair the damage. A fire brigade official said that Greek authorities had recovered the body of a male in Nea Makri (35 km, 21.75 miles northeast of Athens). Local media reported that the man was 'believed to have been carried by a torrent and trapped under a vehicle as he tried to cross an flooded street. As the Erminio Storm swept across Athens, and other islands in the Aegean sea on Wednesday, the fire brigade received hundreds of calls from people who needed help rescuing themselves or others trapped by floodwater. Crews continued to work early on Thursday, removing debris and pumping out water from buildings that had been flooded, as well as repairing infrastructure damaged east of the capital. The authorities also prohibited some ferries sailing from Piraeus, near Athens, to the Greek Islands. The skies over?the mediterranean island Crete turned a eerie orange Wednesday, as winds of up to force 9 Beaufort scale blew dust from North Africa and disrupted flights. Greece, located at the southernmost point of Europe, has suffered devastating floods and wildfires over the past few years. Analysts attribute this to a rapidly changing climate. (Reporting and Writing by Angeliki Koutantou, Editing by Ros Russel)
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Manila: Iran will allow safe passage of Philippine vessels and fuel supplies through Strait of Hormuz
The Philippines' foreign ministry announced on Thursday that Iran has assured them of its willingness to allow Philippine-flagged vessels, fuel, and Filipino seafarers, through the Strait of Hormuz. After Philippine Foreign Minister Ma. Theresa Lazaro and her Iranian counterpart Abbas Araqchi discussed energy security, as well as the safety of Filipino seafarers. The Philippine Foreign Ministry said that the Iranian Foreign minister "assured" the Secretary of the Department of State of the safe, uninterrupted, and expeditious transit of Philippine-flagged ships, energy sources, and all Filipino seafarers through the Strait of Hormuz. Lazaro called the call "productive", stating that they had reached a "positive agreement" in order to guarantee the safety of seafarers as well as the Philippines' energy needs. The Philippine Foreign Ministry said that the assurances would strengthen the energy security of the country. The ministry stated that "given the fact that the Philippines imports most of its energy needs from the Middle East," these assurances will help to ensure the Philippines receives critical oil and fertiliser supplies. Saudi Arabia is the Philippines' largest supplier of crude oil, which makes it susceptible to price fluctuations and disruptions in supply. (Reporting and editing by David Stanway; Mikhail Flores)
Endeavour Mining FY-2023 Dividend Of $200M And Share Buybacks Of $66M.
Endeavour Mining PLC:
* ENDEAVOUR MINING PLC - FY-2023 DIVIDEND OF $200M AND SHARE BUYBACKS OF $66M
* ENDEAVOUR MINING PLC - SHAREHOLDER RETURNS TOTAL $ 903 M. SINCE. FIRST PAYMENT IN Q1-2021, 77% MORE THAN MINIMUM DEDICATION
* ENDEAVOUR MINING PLC - PRODUCTION ASSISTANCE FOR FY-2024. AMOUNTS. TO 1,130-1,270 KOZ
* ENDEAVOUR MINING PLC - AISC IS EXPECTED TO REMAIN. CONSISTENT. WITH THAT ACCOMPLISHED OVER CURRENT QUARTERS AT AN INDUSTRY-LOW. $ 955-1,035/ OZ
* ENDEAVOUR MINING PLC - GROUP PRODUCTION IS EXPECTED TO BE. MORE. HEAVILY WEIGHTED TOWARDS H2-2024
* ENDEAVOUR MINING PLC - AISC IS ALSO EXPECTED TO BE LOWER. IN. H2-2024
* ENDEAVOUR MINING PLC - PORTFOLIO AND PERFORMANCE AT HOUNDÉ. MINE. IS EXPECTED TO BE WEIGHTED TOWARDS H2-2024
* ENDEAVOUR MINING PLC - HOUNDÉ IS EXPECTED TO PRODUCE. BETWEEN. 260-290KOZ IN FY-2024 AT AISC OF $1,000-1,100/ OZ
* ENDEAVOUR MINING PLC - INTERRUPTION AT HOUNDÉ MINE IS. ANTICIPATED TO. IMPACT Q1-2024 PRODUCTION AND AISC
* ENDEAVOUR MINING PLC - GROWTH CAPITAL SPEND FOR FY-2024 IS. EXPECTED TO AMOUNT TO APPROXIMATELY $245.0 MILLION, DECREASE OF. $ 202.5 MILLION
* ENDEAVOUR MINING PLC - INVESTIGATION INTO CHIEF EXECUTIVE. OFFICER'S MISCONDUCT COMPLETED
* ENDEAVOUR MINING PLC - NO MATERIAL EFFECT ON 2023 ANNUAL. FINANCIAL RESULTS DUE TO INVESTIGATION INTO CEO'S MISCONDUCT. Source text for Eikon:. Additional company protection:
(source: Reuters)