Commodities News

Singapore’s Ocean Tankers Tests IMP-Complaint Fuel Counting to Next Year

Off the coast of Singapore, the world’s biggest ship refueling facility, a container barge sidled next to the supertanker Pu Tuo San to fill the large vessel with a new type of fuel that will meet world standards that begin in January next year.

With a little over five months left until more stringent, marine fuel guidelines come into effect, shippers such as Singapore’s Ocean Tankers that own and operate the vast crude carrier (VLCC) Pu Tuo San have begun testing lower sulfur fuel to arrange their line for the transition.

New International Maritime Organization (IMO) guidelines are blocking ships from using fuels containing over 0.5% sulfur, compared with 3.5% currently, will begin on Jan. 1, 2020, as a solution to fight air pollution.

The move will have an effect on fuel supplies to over 50,000 merchant ships around the globe. Shippers will have to either put money into exhaust cleaning techniques, known as scrubbers, to continue utilizing cheaper high-sulfur fuels, or burn more expensive oil products, akin to very low-sulfur fuel oil (VLSFO) and marine gas oil, or use liquefied natural gas (LNG).

The majority of the global delivery fleet is expected to move to low-sulfur fuels as only about 3,600 ships could have installed scrubbers by 2020, information from ship classification society DNV-GL showed.

Ocean Tankers, the transport unit of Singapore’s largest independent oil dealer Hin Leong, said it should turn its fleet of more than 100 oil tankers to burn VLSFO as a substitute of high-sulfur gas oil in Q4.

The Pu Tuo San is at the moment heading to Fujairah in the UAE.

Currencies News

Dollar Reaches Five-Week High On Debt, Budget Deal

The greenback surged on Tuesday to close to a five-week high against a case of currencies after President Trump, and U.S. legislators reached a two-year deal lifting government borrowing limits to cover spending.

The U.S. Treasury now can improve short-term borrowing to rebuild a cash pile that has declined to around $195 billion from $423 billion in late April, Morgan Stanley analysts stated.

A rise in U.S. borrowing would scalp money within the banking system, which is seen as supportive for the dollar.

The greenback’s appeal got a lift after the International Monetary Fund raised its estimate on U.S. growth in 2019 while reducing its global growth forecast. Support also came from a report stating that U.S. negotiators will head to China on Monday for in-person trade negotiations.

In late U.S. trading, an index that follows the dollar versus the euro, yen, sterling and three other currencies. DXY was up 0.47% at 97.716. It reached 97.718, its highest level in five weeks.

The euro worsened broadly as traders geared up for news of new incentive from the European Central Bank. Cash markets have trimmed bets on a 10-basis-factor deposit rate cut; however, analysts expect dovish steerage and more generous terms for planned multi-year loans.

The single currency dropped to $1.1148, its worst since May 31. It stopped at $1.1150, down 0.52% on the day.

The euro sank 0.16% to 120.72 yen after reaching 120.49, its weakest since Jan. 3.

Britain’s pound dipped on news Boris Johnson, who promised to exit the European Union with or without a deal by the end of October, will oust Theresa May as prime minister.

Earnings News

Texas Instruments Quarterly Strike Cools Demand Distress, Stocks Up 6%

Texas Instruments offered some relief that a global slowdown in microchip demand wouldn’t be as long as dreaded, posting quarterly profit and income that beat Wall Street estimations on Tuesday.

Shares of the corporate surged 6.4% to $127.70 in extended trading and have been on track to resume at a record high on Wednesday.

The firm had earlier warned that the slowdown might last some more quarters, as China’s economy cools and companies face the consequence of a prolonged U.S.-China trade conflict.

When asked if the trade spat was impacting the company’s capability to conduct business in China, Chief Financial Officer Rafael Lizardi said, “No, under no circumstances.”

The market was further inspired by the figures from one of the first chip manufacturers to report earnings for the quarter, as there were uncertainties encircling demand resulting from higher tariffs and the fallout from China’s Huawei Technologies.

Texas, whose broad list of products makes it a proxy for the chip sector, said it anticipated third-quarter income to be between $3.65 billion and $3.95 billion. The firm further estimated a profit of between $1.31 and $1.53 a share.

Analysts on average were projecting revenue of $3.83 billion and gains of $1.38 a share, in accordance with IBES data from Refinitiv.

Chan; however, expressed worries about the renewed uneven demand in industrial and automotive sectors because of slowing growth in China.

Sales from industrial and automotive industries, its fastest-rising areas, together accounted for over half of the company’s income in 2018.

Net earnings dropped to $1.31 billion, i.e., $1.36 a share, in the second quarter ended June 30 from $1.41 billion, i.e., $1.40 a share, a year ago.

Currencies News

Sterling Afloat by Retail Sales, Bid to Prevent No-Offer Brexit

The pound bounced on Thursday after stronger-than-predicted retail sales numbers, additionally finding backing from a vote by legislators to make it harder for Britain’s subsequent prime minister to try to pressure a no-deal Brexit.

MPs approved the final wording of the plan, though an already sturdy sterling reacted a bit.

Boris Johnson, the favorite to succeed Prime Minister Theresa May, has stated Britain should leave the European Union by Oct. 31 with or without and has declined to rule out hanging parliament to prevent legislators from attempting to block his exit plan.

That has babbled traders who fear a government under Johnson would increase the risk of a no-deal Brexit, and this week they dropped sterling, which fell to a 27-month low against the greenback and a six-month low versus the euro.

However, on Thursday the currency rallied a few of those losses, with merchants who had bet against it taking some earnings.

Explaining sterling’s power, analysts further cited media reports which mentioned EU chief negotiator Michel Barnier was open to different border plans for Eire – a significant sticking level in Brexit agreements.

However, many count on turbulent times for sterling as the Brexit deadline nears.

Many economists have forecasted UK gross domestic product contracted in Q2; however, the sudden bounce of retail sales in June may increase hopes that the economic system kept rising.

The pound was up 0.4% at $1.2477, after growing to as high as $1.2494, a two-day high, and away from the 27-month low of $1.2382 hit on Wednesday.

Against the euro, sterling elevated 0.4% to 89.92 pence, hiding from a high of 89.795 earlier. It had struck a six-month low of 90.51 on Wednesday.

Commodities News

TechnipFMC Secures $7.6 Billion Contract for Arctic LNG-2

Oil services agency TechnipFMC said Tuesday it had been awarded a major engineering, procurement and building deal by Russia’s Novatek and its companions for the Arctic 2 liquefied natural gas venture in western Siberia.

It said the consolidated deal value to TechnipFMC for Arctic LNG-2 was $7.6 billion and contained three LNG trains, each with a capability of 6.6 million tons per annum (Mtpa).

The Arctic LNG 2 venture aims to develop over 7 billion barrels of oil equivalent (boe) of resources.

Novatek owns a 60% stake in the venture, while French oil and gas leading Total, China’s CNPC, CNOOC, and Japan Arctic LNG consortium each hold 10%.

Novatek said on Tuesday it had met its target for participation in the venture with the completion of stake sales, which means it could now make a final funding decision.

The venture is predicted to have a total production capability of 19.8 million tonnes per annum, or 535,000 barrels of oil equivalent a day.

TechnipFMC, formed by a 2016 merger of France’s Technip and U.S. rival FMC Technologies, had earlier carried out design engineering and development work on Novatek’s Yamal LNG venture.

“We’re extremely honored to be committed with this new deal by Novatek and its companions. We’re leveraging our successful track record on the Yamal LNG venture and prominently the modular fabrication scheme,” Nello Uccelletti, president of onshore-offshore operations at TechnipFMC, stated in a press release.

In a separate assertion, the corporate stated on Tuesday its board had accredited a quarterly cash dividend of $0.13 per ordinary share payable on or shortly after Sept. 4.

News US Markets

Euro Falls Two-Month Low Ahead of ECB, Pound Under Strain

The euro slid to a two-month low on Wednesday, as markets waited to assess the European Central Bank’s position on policy amid effervescent expectations that it could ultimately lower rates of interest and be part of the global easing development.

The common currency was 0.05% down at $1.1145 after hitting $1.1143, its lowest since May 31. It had already lost over 0.5% the previous day and shed practically 0.7% to date this week.

The euro’s drop has hastened ahead of the ECB’s policy meeting on Thursday. Whereas markets have pared their bets the central bank would reduce rates by ten basis points, they still count on dovish guidance, paving the best way for alleviating in September.

“Attempts throughout the currency market to price in dovish moves or language by the ECB have found speed over the last few days, resulting in the euro’s steep drop,” mentioned Yukio Ishizuki, a senior currency strategist at Daiwa Securities.

The euro was further seen weighed down because the pound slumped towards a two-yr low after Boris Johnson on Tuesday won the race to be the subsequent British prime minister and increased the specter of a no-deal Brexit.

Sterling was a contact lower at $1.2433, on track for its fourth straight day of losses and edging nearer $1.2382; the two-year trough touched last week.

The greenback floated close to a one-week high of 108.290 yen scaled in a single day, supported by an increase in U.S. Treasury yields as investor risk reluctance declined following some progress in U.S.-China trade discussions.

U.S. Trade Consultant Robert Lighthizer and senior U.S. officers will travel to Shanghai on Monday for face-to-face trade conferences with Chinese officers, sources said.

The greenback index edged as much as a five-week high of 97.755, following gains of almost 0.5% yesterday.

News US Markets

China Central Bank Injects Medium-Term Loans with Lower-Cost Funds to Strengthen Economy

China’s central bank provided medium-term loans to financial organizations on Tuesday in an attempt to get more reasonably priced funds to struggling smaller corporations, as it steps up efforts to help a slowing economy.

With the development in China sliding to a near 30-year low, international financial markets are closely watching to see if the People’s Bank of China (PBOC) will trim rates of interest soon consistent with expected easing by different major central banks.

While the PBOC left rates on the medium-term loans fixed on Tuesday, and the injection had been expected, it triggered lower-value funds into a credit program aimed mainly at lowering strains on small and medium-sized companies.

The PBOC lent 497.7 billion yuan ($72.31 billion), along with 200 billion yuan via one-year medium-term lending facility (MLF) loans and extra 297.7 billion yuan via targeted medium-term lending facility (TMLF) mortgage, it stated in an announcement.

The size of the TMLF funding was 11% bigger than the last such shot in April.

Rates of interest for liquidity amenities have been unchanged from earlier levels. The one-year MLF and TMLF continued at 3.30% and three.15%, respectively.

The total figure roughly offset 502 billion yuan of MLF loans that were set to run out on Tuesday, guaranteeing a steady supply of money.

The central bank mentioned banking system liquidity should be “moderately ample” after the lending activities.

Around 160 billion yuan in reverse repos were further set to run out on Tuesday, based on calculations of official data. The PBOC didn’t say in its assertion whether it had poured funds from money markets on Tuesday.

Earnings News

AutoNation Elects New CEO, Records Strong Quarterly Gains

AutoNation, the most critical U.S. auto dealership chain, on Monday named a new chief executive four months after selecting someone else for the position while posting a stronger-than-expected quarterly revenue.

Cheryl Miller, who was AutoNation’s chief financial officer (CFO), instantly replaces Carl Liebert, who will stay for 30 days to help with the transition.

Liebert assumed the CEO role on March 11, a month after his hiring was declared from financial services firm USAA, where he had been a chief operating officer.

Jackson added he was excited to declare Miller’s promotion, citing her nearly two decades of experience with automotive retail. She had been CFO since 2014 and joined the corporate in 2009.

AutoNation said Miller had led several vital ventures, including the building of the corporate’s collaborations with Alphabet Inc’s Waymo and helping AutoNation obtain investment-grade status.

AutoNation said on Monday that its Q2 earnings surged to $100.8 million, or $1.12 per share, from $97.6 million, or $1.07 a share, in the year-earlier quarter. Income was mostly flat at $5.34 billion.

The second quarter this year added a noncash franchise rights impairment charge of 8 cents per share.

Analysts were predicting $1.06 a share on revenue of $5.29 billion, in accordance with IBES data from Refinitiv.

AutoNation’s profits have been under stress as the U.S. new vehicle sales have decreased after a long bullish run since the end of the monetary crisis of 2008.

Jim Bender was elected as the chief operating officer (COO) from executive VP of sales, and chief accounting officer Christopher Cade was elected interim CFO during the search for a permanent substitute, AutoNation said.

Currencies News

Sterling Touches Two-Year Low as Traders Hedge Grow in Brexit Risk

Sterling declined below $1.24 on Wednesday, levels not plumbed for over two years, as traders continued to price the increasing risk of Britain’s crashing out of the European Union without a transition deal in place.

With economic data further displaying the UK economy coping, putting more strain on the Bank of England to ease fiscal policy, traders are taking to currency derivatives and futures markets to bet on more weakness.

After dropping to as low as $1.2382, the pound later bounced slightly on Wednesday to trade at $1.2426 GBP=D3, up 0.2% on the day; however, the currency stays under strain.

In October 2016, the British currency fell briefly below $1.15, its weakest in more than than 30 years, throughout a flash crash in the forex markets in early Asian trading sessions.

It has since regained, strengthening to nearly $1.34 earlier this year. However, fears the subsequent British Prime Minister will drag Britain out of the EU without a deal have prompted merchants to drop the pound in recent times.

Arch-Brexiteer Boris Johnson is the one to become Conservative Party chief subsequent week and thus the next prime minister. Johnson and his contestant for the leadership, Jeremy Hunt, have been competing with one another to show party members their readiness to force a “hard” Brexit.

The pound has lost 1% against the euro this month and over 2% against the greenback, putting it on track for its greatest month-to-month fall since June 2018.

It’s this year’s worst-performing G10 currency against the greenback. HSBC strategists said a “no-deal” would push the pound to $1.10.

Against the euro, sterling fell to as little as 90.51 pence EURGBP=D3 on Wednesday, a new six-month low, before regaining to 90.285 by 1445 GMT.

Commodities News

Curacao’S PM and Venezuelan Oil Minister Discuss PDVSA to Remain as Refinery Controller

Curacao’s prime minister and Venezuela’s oil minister talked about the potential of Venezuelan state oil firm PDVSA remaining as the director of the Caribbean nation’s 335,000 barrel-per-day (bpd) Isla refinery, Curacao’s government mentioned on Monday.

PDVSA’s [PDVSA.UL] deal will expire by the end of this year, and the government-run refinery has been searching for an enterprise associate to switch it. A lack of crude freights left the facility mostly idle.

In the assertion, Prime Minister Eugene Rhuggenaath’s office said he and Venezuelan Oil Minister Manuel Quevedo, who is also a PDVSA’s president, during a meeting at the refinery “spoke in regards to the startup of the refinery and the interest of PDVSA to remain as the director after 2019.”

Refineria di Korsou, the state firm that owns the center, stated last week that would begin evaluating as much as ten offers from power firms interested in becoming an associate at the refinery. Its current schedule demands the negotiations to start by October and for a contract to be reached by November.

The corporate said in a press release on Monday that it would not reveal the names of the parties that have given proposals.

OPEC member Venezuela’s crude production has dropped since the US slapped penalties on PDVSA in January as a part of the US’ effort to pressure socialist President Nicolas Maduro to exit office amid a hyperinflationary economic collapse.

Venezuela underwent widespread blackouts on Monday in areas across the country, along with the capital