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Soft U.S. jobs data weighs on dollar, euro hostage to Greek vote

LONDON The dollar fell against a basket of currencies on Friday, hurt by softer than expected U.S. employment data and with most investors staying on the sidelines before Greece’s referendum on bailout conditions at the weekend. Volumes were expected to be low, with U.S. markets closed for Independence Day. Caution also reigned ahead of Greece’s Sunday referendum on an international bailout deal that could ultimately determine whether it stays in the euro zone. The dollar index was down 0.15 percent at 95.977 .DXY, retreating from a four-week high of 96.422 hit earlier in the day. Against the yen, the dollar was buying 123.03 yen JPY= , flat on the day. The euro edged up 0.15 percent to $1.1105 EUR= . "With liquidity thin and the Greek referendum coming up, not many would want to take large positions going into the weekend. The U.S. jobs report has taken the wind […]

Posted On : Published By : Tom Whipple
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First Offshore Wind Farm in U.S. Powers Ahead

BLOCK ISLAND, R.I.—Beloved by locals and tourists for its soaring clay bluffs and unspoiled views, this small New England island is heading toward another distinction: home to the nation’s first offshore wind farm. Five towering windmills off the island’s southeast coast are scheduled to begin generating power late next year. The Block Island plan has moved ahead of the Cape Wind project, a much larger turbine farm planned in the waters off Cape Cod in Massachusetts, wind-energy experts said. A contract dispute with local utilities following a slew of legal fights has thrown that 14-year effort into question. Proponents of the Block Island plan hope it will help jump-start the offshore wind industry in the U.S. The American Wind Energy Association trade group estimates there are 11 projects in 10 states in various stages of development. The U.S. lags behind other parts of the world in developing offshore wind, […]

Posted On : Published By : Tom Whipple
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‘Yes’ camp takes slim lead in Greek bailout referendum poll

ATHENS Supporters of Greece’s bailout terms have taken a wafer-thin lead over the "No" vote backed by the leftist government, 48 hours before a referendum that may determine the country’s future in the euro zone, a poll showed. The opinion poll by the respected ALCO institute, published in the Ethnos newspaper on Friday, put the "Yes" camp on 44.8 percent against 43.4 percent for the No" vote. But the lead was within the pollster’s 3.1 percentage point margin of error, with 11.8 percent saying they are still undecided. With banks shuttered all week, cash withdrawals rationed and commerce seizing up, the vote could decide whether Greece gets another last-ditch financial rescue in exchange for more harsh austerity measures or plunges deeper into economic crisis. It could also determine whether Greece becomes the first country to crash out of the 19-nation European single currency area, membership of which is meant […]

Posted On : Published By : Tom Whipple
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Momentum builds behind giant Norwegian oil field

Norwegian government determines share allocation at Johan Sverdrup oil field, one of the largest ever made off the nation’s coast. Photo courtesy of Statoil OSLO, Norway, July 2 (UPI) — Delineating which company holds what percentage of the interest in Norway’s giant Johan Sverdrup field boosts development potential, executives said. Partners to Johan Sverdrup, the fifth largest oil field ever discovered on the Norwegian continental shelf, asked the government to determine the final share allocation when they submitted formal development plans in February. Maersk Oil, which takes the lowest stake at 8.4 percent, said the determination is a watershed moment for the offshore field. "We are pleased that we now have clarity on the ownership," Morten Jeppesen, managing director for Norwegian operations, said in a statement. "It allows the partner companies to focus on moving forward and develop this giant field in the best possible way." Though the share […]

Posted On : Published By : Tom Whipple
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Greece needs €60bn in new aid, says IMF

Newspaper + Premium online Premium online Full FT.com subscription Standard online Full news & archive Registration 3 articles per month Price Monthly Annual £76.00 £13.50 per week (52 weeks in total) £42.00 £7.35 per week (52 weeks in total) £30.00 £5.35 per week (52 weeks in total) Free FT Alphaville plus selected FT blogs FT Alphaville and more Unlimited access to Alphaville, the FT’s popular finance blog, plus many other FT blogs featuring comment and analysis from top columnists Gavyn Davies on macroeconomics, economic policy making & financial markets The Westminster blog covering the UK’s political scene Dispatches from FT experts in San Francisco, London & Taipei on Tech blog The World blog on international affairs yes yes yes yes Unlimited FT.com article access Unlimited FT.com article access Enjoy full access to FT.com’s award-winning news, comment and analysis. With over 500 journalists reporting from over 50 countries, read our […]

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Ruble’s Top Forecaster Sees Deeper Rout as Companies Repay Debt

Sanctions are once again catching up on the ruble. While still the best performer in the world this year, no emerging-market currency has fallen more in the past month as the effect of rebounding oil prices faded. Approaching foreign-debt payments and a shrinking economy probably mean it has a further 10 percent to drop this quarter, according to BNP Paribas SA’s Piotr Chwiejczak, the most accurate ruble forecaster in the four quarters through June 30. After a year of sanctions over Ukraine, Russian corporations remain shut out of foreign capital markets, meaning someone needs to sell rubles every time an international debt is paid. As well as a corporate bill this quarter that’s more than half as big again as the previous three months, the ruble is also under pressure as the Bank of Russia continues to buy foreign exchange, fueling speculation the government is demanding a weaker currency. […]

Posted On : Published By : Tom Whipple
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French Oil Strike Fizzles in Sign Jobs Worries Damping Militancy

A labor union that orchestrated a complete shutdown of France’s refineries in 2010 failed to gain support for a nationwide strike at oil plants this week in a sign its influence is waning. The Confederation Generale du Travail had called for a walkout at refineries, oil depots and import terminals to protest against a plan by Total SA to halt crude processing at La Mede plant in southern France. There was no labor action Thursday at refineries other than La Mede, where a three-week strike has idled operations, Total said. “The CGT is losing ground in its traditional bastions of power like energy and chemicals,” Bernard Vivier, director of Paris-based researcher the Higher Institute of Labor , said in an interview. “France’s social climate isn’t one of revolt these days but rather of resignation.” The CGT, one of half a dozen unions representing oil workers in France, is protesting […]

Posted On : Published By : Tom Whipple
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Oil prices edge up after sliding on U.S. stock build

SINGAPORE Oil prices edged up on Thursday, partially recovering from price falls of 2.5 to 4 percent a day earlier as U.S. stockpiles rose for the first time in months on the back of high production. Following a 4.2-percent drop on Wednesday, front-month U.S. crude futures were trading at $57.15 per barrel at 0655 GMT, up 19 cents from their last settlement. Heading into the second half of the year, U.S. crude has been testing support on the lower range of a $57-62 per barrel price channel, where it has been trading since early May. "We … expect this support level to hold," Singapore-based Phillip Futures said, arguing that this week’s bearish factors had already been priced into the market. Brent crude futures were trading at $62.33 per barrel, up 32 cents after dropping 2.5 percent in the previous session. Yet the contract remains on a downwards trend that […]

Posted On : Published By : Tom Whipple
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Oil Stays Low on Supply Pressures, Market Uncertainty

By Eric Yep Crude-oil futures remained weak in Asian trade Thursday, struggling to recover from sharp losses in the previous trading session on the back of bearish supply data, and with uncertainty still surrounding the debt crisis in Greece. On the New York Mercantile Exchange, light, sweet crude futures for delivery in August traded at $57.03 a barrel at 0314 GMT, up $0.07 in the Globex electronic session. August Brent crude on London’s ICE Futures exchange rose $0.25 to $62.26 a barrel. There is no fundamental case for strength in oil and the market’s weakness largely stems from oversupply, with estimates showing production from the Organization of the Petroleum Exporting Countries trending 6% higher than a year earlier at more than 32.1 million barrels a day, analyst Tim Evans at Citi Futures said. He said it is pretty clear that supply is outpacing demand. "Our overall conclusion is that […]

Posted On : Published By : Tom Whipple
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Oil falls below $63 as Greece defaults, supply soars

LONDON Oil fell below $63 a barrel on Wednesday after Greece defaulted on its debt to the International Monetary Fund while U.S. and OPEC production hit new highs, prompting concern about risks to the economic outlook and ample supply. As well as Greece becoming the first developed economy to default on an IMF loan, oil came under pressure from a surprise gain in U.S. crude stocks reported by the American Petroleum Institute (API) and the prospect of higher Iranian oil exports. Brent crude was down 70 cents at $62.89 a barrel at 0847 GMT. U.S. crude fell 89 cents to $58.58. Both contracts made gains on Tuesday. World powers and Iran are holding talks in Vienna on their nuclear dispute. A deadline for an agreement, which could pave the way for higher Iranian oil exports, has been extended until July 7. "Greece is an additional risk factor, but I […]

Posted On : Published By : Tom Whipple