Categories
Internet

French police to investigate vandalism behind internet outage

PARIS, April 27 (Reuters) – The Paris prosecutor’s office said it has opened a probe into the causes of a major internet outage which affected France’s telecommunications network on Wednesday following reports of coordinated acts of vandalism.

The French Telecoms Federation said attacks of vandalism had impacted telecoms networks in several regions, including the Ile-de-France region around Paris, eastern France and the Auvergne-Rhone-Alpes and Bourgogne-France-Comte regions.

The investigation will be co-handled by France’s internal intelligence services and the national judicial police, the prosecutor’s office said, citing a potential threat to the fundamental interests of the nation.

Register now for FREE unlimited access to Reuters.com

Earlier, Minister for Digital Affairs Cedric O said on Twitter that internet cables had been cut in the Ile-de-France region, which was affecting the landline and mobile network and that the ministry was working with operators to restore service.

A spokesperson for Altice’s French telecoms operator SFR said the group had been the target of acts of vandalism that affected the company’s broadband fiber optic network after 3 am local time (0100 GMT) on Wednesday.

The attacks concerned long-distance cables linking Paris with the cities of Strasbourg and Lyon, the spokesperson said.

These long distance cables link large hubs to the broadband network and the internet, potentially affecting direct customers as well as other operators that rent SFR’s network, such as Free, which also pointed to vandalism in a tweet.

SFR declined to provide further details on the location of the damaged underground cables. It also declined to say when full service would summarize or elaborate on the number of cities and customers potentially affected.

Another long distance fiber network connection, linking Paris to the city of Lille, was also damaged, an industry source said.

French rival Orange (ORAN.PA), which operates a substantial part of the fiber network in the country, said it was not affected by the attacks.

French media reported major internet outages in big cities like Paris, Lyon, Bordeaux, Reims and Grenoble, quoting officials saying that vandalism or sabotage was suspected.

Le Parisien newspaper reported that underground cables had been damaged in France’s Seine-et-Marne and Essone departments, adding that these cables were linking the hubs of Paris and Lyon.

Register now for FREE unlimited access to Reuters.com

Reporting by Tassilo Hummel, Geert De Clercq and Mathieu Rosemain; editing by Tomasz Janowski, Elaine Hardcastle

Our Standards: The Thomson Reuters Trust Principles.

.

Categories
Markets

World stocks clamber off 18-month lows, but markets on recession watch

 

  • S&P futures up 1.13%, European stocks gain 0.96%
  • MSCI Asia ex-Japan +1.8%, Nikkei +2.64%
  • Worries over inflation, tightening policy remain
  • Dollar hovers near 20-year highs on safe-haven demand

LONDON/SHANGHAI, May 13 (Reuters) – World stocks rose from the previous day’s 18-month lows and the dollar pulled back from 20-year highs on Friday, though investors remained nervous about high inflation and the impact of rising interest rates.

Markets are becoming anxious about the possibility of recession, with the S&P getting close to a bear market on Thursday, at nearly 20% off its January all-time high.

In an interview late on Thursday, US Federal Reserve Chair Jerome Powell said the battle to control inflation would “include some pain.” Powell repeated his expectation of half-percentage-point interest rate rises at each of the Fed’s next two policy meetings, while pleading that “we’re prepared to do more.” read more

Register now for FREE unlimited access to Reuters.com

 

Register

 

The war in Ukraine has aggravated supply chain disruptions and inflationary pressures already in place after more than two years of the COVID-19 pandemic, but stocks enjoyed a bounce on Friday.

“There’s an awful lot of negative sentiment out there, we’re looking at a 40% chance of recession,” said Patrick Spencer, vice chairman of equities at Baird Investment Bank.

“A lot of fund managers have cut their equity allocations and raised cash, though we think this is a correction rather than a bear market.”

MSCI’s world equity index (.MIWD00000PUS) rose 0.32% after hitting its lowest since November 2020 on Thursday, though it was heading for a 4% fall on the week, its sixth straight week of losses.

S&P futures bounced 1.13% after the S&P index dropped 0.13% overnight, with the index also eyeing a sixth straight week of declines.

S&P 500 set for a sixth straight week of falls

European stocks (.STOXX) rallied 0.96% and Britain’s FTSE 100 (.FTSE) gained 1.17%.

The US dollar eased 0.22% to 104.54 against a basket of currencies, but remained close to 20-year highs due to safe haven demand.

Russia has bristled over Finland’s plan to apply for NATO membership, with Sweden potentially following suit.

Moscow called Finland’s announcement hostile and threatened retaliation, including unspecified “military-technical” measures. read more

The dollar rose 0.36% to 128.76 yen , while the euro gained 0.3% to $1.0408, recovering from Thursday’s five-year lows.

Cryptocurrency bitcoin also turned higher, cracking through $30,000 after the collapse of TerraUSD, a so-called stablecoin, drove it to a 16-month low of around $25,400 on Thursday. read more

“Some traders may see the sharp fall this month as an opportunity to buy the dip, but given the hugely volatile nature of the coins, the crypto house of cards could tumble further,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown .

The moves higher in equities were mirrored in US Treasuries, with the benchmark US 10-year yield edging up to 2.9221% from a close of 2.817% on Thursday.

The policy-sensitive 2-year yield was at 2.6006%, up from a close of 2.522%.

“Within the shape of the US Treasury curve we are not seeing any particularly fresh recession/slowdown signal, just the same consistent marked slowing earmarked for H2 2023,” Alan Ruskin, macro strategist at Deutsche Bank, said in a note.

German 10-year government bond yields edged up to 0.9250%.

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was up almost 2% from Thursday’s 22-month closing low, trimming its losses for the week to less than 3%.

Australian shares (.AXJO) gained 1.93%, while Japan’s Nikkei stock index (.N225) jumped 2.64%.

In China, the blue-chip CSI300 index (.CSI300) was up 0.75% and Hong Kong’s Hang Seng (.HSI) rose 2.71%, encouraged by comments from Shangahi’s deputy mayor that the city may be able to start easing some tough COVID restrictions this month. read more

“We had some pretty big moves yesterday, and when you see those big moves it’s only natural to get some retracement, especially since it’s Friday heading into the weekend. There’s not really a new narrative that’s come through,” said Matt Simpson, senior market analyst at City Index.

Oil prices were higher against the backdrop of a pending European Union ban on Russian oil, but were still set for their first weekly loss in three weeks, hit by concerns about inflation and China’s lockdowns slowing global growth.

US crude rose 0.75% to $106.97 a barrel, and global benchmark Brent crude was up 1.05% at $108.58 per barrel.

Spot gold , which had been driven to a three-month low by the soaring dollar, was up 0.2% at $1,824.61 per ounce.

Register now for FREE unlimited access to Reuters.com

 

Register

Reporting by Andrew Galbraith; Editing by Simon Cameron-Moore, Lincoln Feast and Kim Coghill

Our Standards: The Thomson Reuters Trust Principles.

Categories
Internet

US joins 55 nations to set new global rules for the internet

WASHINGTON, April 28 (Reuters) – The United States and 55 other nations on Thursday signed a political commitment to push rules for the internet that are underpinned by democratic values, at a time when the US has accused Russia of wielding internet disruptions as a part of its escalating attacks on Ukraine.

The commitment, called the “Declaration for the Future of the Internet” – the first such effort of its kind – protects human rights, promotes free flow of information, protects the privacy of users, and sets rules for a growing global digital economy among steps to counter what two Biden administration officials called a “dangerous new model” of internet policy from countries such as Russia and China.

The United States is witnessing a global trend of rising digital authoritarianism, with countries such as Russia having acted to repress freedom of expression, censor independent news sites, interfere with elections, promote disinformation, and deny their citizens other human rights, the officials said.

Register now for FREE unlimited access to Reuters.com

“Look at what…Russia is doing, some of the steps China is taking, and I think we see this as a response to these kind of ‘splinternet’ tendencies by a number of authoritarian countries around the world,” one of the officials said, referring to a characterization of the internet as splintering and dividing due to various factors, such as politics.

Since its invasion of Ukraine, Russia has launched cyberattacks, including hacking into a satellite internet provider’s network at the beginning of the invasion. The administration officials said the new effort is not an attempt to address cyber warfare.

The declaration is a modified version of the White House’s efforts from last year to rally a coalition of democracies around a vision for an open and free web.

The countries joining the US include Australia, Argentina, Belgium, Canada, Denmark, Georgia, Germany, Greece, Israel, Italy, Japan, Netherlands, the United Kingdom and Ukraine.

The effort will be launched virtually at the White House on Thursday by Biden’s national security adviser, Jake Sullivan, at 7:30 am ET (1130 GMT).

Register now for FREE unlimited access to Reuters.com

Reporting by Nandita Bose in Washington; Editing by Leslie Adler

Our Standards: The Thomson Reuters Trust Principles.

.

Categories
Artificial intelligence

Elix chief exec aims to lead Japan’s AI drug discovery field

Elix chief exec aims to lead Japan's AI drug discovery field

In the USA and in Europe, interest in the potential for artificial intelligence to transform different aspects of the life sciences industry is at an all-time high.

Much of the attention has been paid to the potential for an algorithmic, machine learning-based approach to drug discovery.

The charge has been led by companies such as French firm Iktos, Britain’s Exscientia (Nasdaq: EXAI) and BenevolentAI, and American firms including Seismic Therapeutic,…

This article is accessible to registered users, to continue reading please register for free. A free trial will give you access to exclusive features, interviews, round-ups and commentary from the sharpest minds in the pharmaceutical and biotechnology space for a week. If you are already a registered user please login. If your trial has come to an end, you can subscribe here.

try before you buy

• All the news that moves the needle in pharma and biotech.
• Exclusive features, podcasts, interviews, data analyzes and commentary from our global network of life sciences reporters.
• Receive The Pharma Letter daily news bulletin, free forever.

Become a subscriber

• Unfettered access to industry-leading news, commentary and analysis in pharma and biotech.
• Updates from clinical trials, conferences, M&A, licensing, financing, regulation, patents & legal, executive appointments, commercial strategy and financial results.
• Daily roundup of key events in pharma and biotech.
• Monthly in-depth briefings on Boardroom appointments and M&A news.
• Choose from a cost-effective annual package or a flexible monthly subscription.

.

Categories
Markets

Stock Market Today: Dow Drops, Bitcoin Plunges

Textsize

.

Categories
Business

Siemens to leave Russia due to Ukraine war, take hefty charge

  • Siemens to leave Russia after 170 years
  • Russia makes up around 1% of total revenues
  • Shares fall after earnings miss
  • CEO condemns the war in Ukraine

ZURICH, May 12 (Reuters) – Siemens (SIEGn.DE) will quit the Russian market due to the war in Ukraine, it said on Thursday, taking a 600 million euro ($630 million) hit to its business during the second quarter, with more costs to eat.

The German industrial and technology group became the latest multinational to announce losses linked to its decision to leave Russia following the Feb. 24 invasion, which Moscow calls a “special military operation”.

Several companies, from brewers Anheuser-Busch InBev (ABI.BR) and Carlsberg to sportswear maker Adidas (ADSGn.DE), carmaker Renault and several banks have been counting the cost of suspending operations in or withdrawing from Russia. read more

Register now for FREE unlimited access to Reuters.com

Siemens Chief Executive Roland Busch described the conflict as a “turning point in history.”

“We, as a company, have clearly and strongly condemned this war,” Busch told reporters.

“We’re all moved by the war as human beings. And financial figures must take a back seat in the face of the tragedy. Nevertheless, like many other companies, we’re feeling the impact on our business.”

During the second quarter Siemens incurred 600 million euros in impairment and other charges mostly recorded in its train-making mobility business subsequent to sanctions on Russia, Siemens said.

Busch said further impacts were to be expected, mainly from non-cash charges related to the winding-down of legal entities, revaluation of financial assets and restructuring costs.

“From today’s perspective, we foresee further potential risks for net income in the low- to mid-triple-digit million range, although we can’t define an exact timeframe,” he added.

Siemens shares dropped 5% in early trading as the company missed analysts’ expectations for second-quarter profit.

The Munich company employs 3,000 people in Russia, where it has been active for 170 years. It first went to Russia in 1851 to deliver devices for the telegraph line between Moscow and St Petersburg.

The country now contributes about 1% of Siemens’ annual revenue, with most of the present day business concerned with maintenance and service work on high-speed trains.

Its sites in Moscow and St Petersburg are now being ramped down, Busch said.

The costs weighed on Siemens’ second quarter earnings, with net income halved to 1.21 billion euros ($1.27 billion), missing analysts’ forecasts of 1.73 billion.

The company posted industrial profit of 1.78 billion euros, down 13% from a year earlier and also missing forecasts.

But demand stayed robust, with orders 22% higher on a comparable basis and revenue 7% higher.

As a result it confirmed its full-year outlook, with comparable revenue growth of 6% to 8% for the full year, with a downturn in mobility expected to be compensated by faster growth in factory automation and digital buildings.

JP Morgan analyst Andreas Willi described the results as “mixed with strong orders, industry leading growth in automation and strong cash conversion.”

($1=0.9508 euros)

Register now for FREE unlimited access to Reuters.com

Reporting by John Revill; Editing by Kim Coghill and Clarence Fernandez

Our Standards: The Thomson Reuters Trust Principles.

.

Categories
Economy

Russian ships carrying stolen Ukrainian grain turned away from Mediterranean ports — but not all of them

CNN has identified the vessel as the bulk carrier Matros Pozynich.

On April 27, the ship weighed anchor off the coast of Crimea, and turned off its transponder. The next day she was seen at the port of Sevastopol, the main port in Crimea, according to photographs and satellite images.

The Matros Pozynich is one of three ships involved in the trade of stolen grain, according to open source research and Ukrainian officials.

Crimea, annexed by Russia in 2014, produces little wheat because of a lack of irrigation. But the Ukrainian regions to its north, occupied by Russian forces since early March, produce millions of tons of grain every year. Ukrainian officials say thousands of tons are now being trucked into Crimea.

Kateryna Yaresko, a journalist with the SeaKrime project of the Ukrainian online publication Myrotvorets, told CNN the project had noticed a sharp increase in grain exports from Sevastopol — to about 100,000 tons in both March and April.

From Sevastopol, according to satellite images and tracking data reviewed by CNN, the Matros Pozynich transited the Bosphorus and made its way to the Egyptian port of Alexandria. It was laden with nearly 30,000 tons of (Ukrainian) wheat, according to Ukrainian officials.

Biden blames Russia's war in Ukraine for food supply shortages and price hikes

But the Ukrainians were one step ahead. Officials say Egypt was warned that the grain was stolen; the shipment was turned away. The Pozynich steamed towards the Lebanese capital, Beirut, with the same result.

The Matros Pozynich turned off its transponder again on May 5, but imagery from Tankertrackers.com and Maxar Technologies shows it traveled to the Syrian port of Latakia.

The Syrian regime has a close relationship with Russia and the Russian military are frequently in Latakia. Indeed, the Matros Pozynich is named after a Russian soldier killed in Syria in 2015.

Mikhail Voytenko, editor-in-chief of the Maritime Bulletin, told CNN that the grain could be reloaded onto another ship at Latakia to disguise its origins. “When the destination port starts to change without any serious reason, this is another proof of smuggling,” he said.

Close-up view shows the Matros Pozynich, named after a Russian soldier killed in Syria in 2015, at Latakia port.

In its first comments on the illicit export of Ukrainian grain, the Defense Ministry’s Intelligence Directorate said Tuesday that “a significant part of the grain stolen from Ukraine is on vessels sailing under the Russian flag in the waters of the Mediterranean.”

“The most likely destination of the cargo is Syria. The grain can be smuggled from there to other countries of the Middle East,” it said.

Shipping data shows that the Matros Pozynich is one of three bulk carriers registered to a company called Crane Marine Contractor, based in Astrakhan, Russia. The company is not under international sanctions.

CNN’s efforts to reach the company were unsuccessful.

Yaresko says that the SeaKrime project has identified the true owners of the three ships as one of 29 companies under the umbrella of a large Russian corporation, whose other entities were sanctioned by the United States soon after the Russian invasion.

More grain thefts

The Ukrainian Defense Ministry estimates that at least 400,000 tons of grain has been stolen and taken out of Ukraine since Russia’s invasion. Mykola Solsky, Ukraine’s minister of Agrarian Policy and Food, said this week it is “sent in an organized manner in the direction of Crimea. This is a big business that is supervised by people of the highest level.”

CNN reported last week that trucks with Crimean license plates pilfered 1,500 tons of grain from storage units in Kherson. In Zaporizhzhia, trucks bearing the white “Z” symbol of the Russian military were spotted transporting grain to Crimea after the city’s main grain elevator was completely emptied.

This week, Ukrainian authorities reported more grain thefts by occupying forces. The Intelligence Directorate said that in one part of Zaporizhzhia, grain and sunflower seeds in storage were being prepared for transport to Russia. A column of Russian trucks carrying grain had left the town of Enerhodar — also in Zaporizhzhia — under the guard of the Russian military, the Directorate claimed.

While Russian ships are apparently able to carry Ukrainian grain on the high seas, Ukrainian farmers are finding it much more difficult to export their produce. Much of it would normally be shipped out of Odessa. While still in Ukrainian hands, Odesa has come under frequent missile attacks and much of the Black Sea is off-limits to merchant shipping.

Russians steal vast amounts of Ukrainian grain and equipment, threatening this year's harvest

Ukrainian shippers have diverted some grain via rail to Romania, as CNN reported last week. But it’s hardly a solution to what is becoming a supply crisis already having an impact on world markets.

Samantha Power, the administrator of USAID, tweeted this week: “Putin’s war is wreaking havoc on food supplies; Ukraine is the world’s #4 exporter of corn and #5 exporter of wheat.”

Ukraine and Russia normally supply about 30% of the world’s wheat exports, much of which goes to the world’s poorest countries. Global food prices hit a record high in March, according to the United Nations, driven largely by the war in Ukraine. Drought in wheat-growing areas of France and Canada is threatening to aggravate an already tight supply situation.

President Volodymyr Zelensky said Tuesday that “Without our agricultural exports, dozens of countries in different parts of the world are already on the brink of food shortages.”

On the same day, the President of the European Council, Charles Michel, was in Odessa with Ukrainian Prime Minister Denys Shymal, looking at the huge amounts of grain stockpiled at the port.

He tweeted out photographs, saying “I saw silos full of grain, wheat and corn ready for export. This badly needed food is stranded because of the Russian war and blockade of Black sea ports. Causing dramatic consequences for vulnerable countries.”

Trading Economics noted Wednesday that “wheat prices are 31% higher than before the Russian invasion, as interrupted exports from the Black Sea significantly reduced world supply.”

As for the Russians, they seem ready to adapt to the new realities in world markets. The Russian Grain Union has a conference scheduled for June. One of the sessions, according to the Union’s Instagram account, is: “Sanction restrictions — how the grain sector is adapting to the new reality and why the state is reacting to a change in the situation with unprecedented speed.”

CNN’s Josh Pennington and Paul P. Murphy contributed to this report.

.

Categories
Business

Stocks in a tailspin, dollar soars as hard landing fears grow

A broker reacts while trading at his computer terminal at a stock brokerage firm in Mumbai, India, February 1, 2020. REUTERS/Francis Mascarenhas

Register now for FREE unlimited access to Reuters.com

  • World stocks drop to 1-1/2 yr low, down almost 20% YTD
  • Europe opens down 2% US equity futures struggle
  • Dollar hits 2yr highs on AUD, NZD
  • Bitcoin tumbling, hits new 16-month low
  • Copper buckles to lowest since October

LONDON, May 12 (Reuters) – Shares sank to a 1-1/2 year low on Thursday and the dollar hit its highest in two decades, as fears grew that fast-rising inflation will drive a sharp rise in interest rates that brings the global economy to a standstill.

Those nerves and the still-escalating war in Ukraine took Europe’s main markets down more than 2% in early trade and left MSCI’s top index of world shares (.MIWD00000PUS) at its lowest since late 2020 and down nearly 20% for the year.

The global growth-sensitive Australian and New Zealand dollars fell about 0.8% to almost two-year lows. The Chinese yuan slid to a 19-month trough while the dollar powered to its highest level since late 2002.

Register now for FREE unlimited access to Reuters.com

Nearly all the main volatility gauges were signaling danger. Bitcoin was caught in the fire-sale of risky crypto assets as it fell another 8% to $26,570, having been near $40,000 just a week ago and almost $70,000 just last November.

“We have had big moves,” UBS’s UK Chief Investment Officer Caroline Simmons, said referring as well to bond markets and economic expectations. “And when the market falls it does tend to fall quite fast.”

Data on Wednesday had shown US inflation running persistently hot. Headline consumer prices rose 8.3% in April year-on-year, fractionally slower than the 8.5% pace of March, but still above economists’ forecasts for 8.1%. read more

US markets had whipsawed after the news, closing sharply lower, and futures prices were pointing to another round of 0.2%-0.7% falls for the S&P 500, Nasdaq and Dow Jones Industrial later.

“We’re now very much embedded with at least two further (US) hikes of 50 basis points on the agenda,” said Damian Rooney, director of institutional sales at Argonaut in Perth.

“I think we were probably delusional six months ago with the rise of US equities on hopes and prayers and the madness of the meme stocks,” he added.

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) fell 2.3% to a 22-month low overnight. Japan’s Nikkei (.N225) fell 1.8%.

Treasuries were bid in both Europe and Asia, especially at the long end, flattening the yield curve as investors braced for near-term hikes to hurt long-run growth – an outcome that would most likely slow or even reverse rate hikes.

The benchmark 10-year Treasury yield had dropped in the US and fell a further 7 bps to 2.8569% on Thursday. The gap between the highly rate-rise sensitive two-year yields and 10-year ones narrowed 4.2 bps .

In Europe, Germany’s 10-year yield, the benchmark for the bloc, fell as much as 12 bps to 0.875%, its lowest in nearly two weeks.

“I think a lot of it is catch up from what happened yesterday, and also there’s still a lot of negative sentiment in the US Treasury curve,” said Lyn Graham-Taylor, senior rates strategist at Rabobank.

SELL IN MAY

The rates outlook is driving up the US dollar and taking the heaviest toll on riskier assets that shot up through two years of stimulus and low-rate lending.

The Nasdaq (.IXIC) is down nearly 8% in May so far and more than 25% this year. Hong Kong’s Hang Seng Tech index (.HSTECH) slid 1.5% on Thursday and is off more than 30% this year.

Cryptocurrency markets are also melting down, with the collapse of the so-called TerraUSD stablecoin highlighting the turmoil as well as the selling in bitcoin and next-biggest-crypto, ether. read more

A weakening growth picture outside the United States is battering investor confidence, too, as war in Ukraine threatens an energy crisis in Europe and lengthening COVID-19 lockdowns in China throw another spanner into supply chain chaos.

Nomura estimated this week that 41 Chinese cities are in full or partial lockdowns, making up 30% of the country’s GDP.

Heavyweight property developer Sunac (1918.HK) said it missed a bond interest payment and will miss more as China’s real estate sector remains in the grip of a credit crunch. read more

The yuan fell to a 19-month low of 6.7631 and has dropped almost 6% in under a month.

The Australian dollar fell 0.8% to a near two-year low of $0.6879. The kiwi slid by a similar margin to $0.6240, though the euro and yen held steady to keep the dollar index just shy of a two-decade peak.

Sterling was at a two-year low of just under $1.22 as well as economic data there caused worries and concerns grew that Britain’s Brexit deal with the EU was in danger of unraveling again due to the same old problem of Northern Ireland’s border. read more

In commodity trade, oil wound back a bit of Wednesday’s surge on growth worries.

Brent crude futures fell 2.3% to $104.93 a barrel, while highly growth-sensitive metals copper and tin slumped over 3.5% and 9% respectively. That marked copper’s lowest level since October.

Register now for FREE unlimited access to Reuters.com

Additional reporting by Tom Westbrook in Singapore; Editing by Kim Coghill

Our Standards: The Thomson Reuters Trust Principles.

.

Categories
Business

EXCLUSIVE Google paying more than 300 EU publishers for news, more to come

BRUSSELS, May 11 (Reuters) – Alphabet (GOOGL.O) unit Google has signed deals to pay more than 300 publishers in Germany, France and four other EU countries for their news and will roll out a tool to make it easier for others to sign up too, the company told Reuters.

The move to be announced publicly later on Wednesday followed the adoption of landmark EU copyright rules three years ago that require Google and other online platforms to pay musicians, performers, authors, news publishers and journalists for using their work.

News publishers, among Google’s fiercest critics, have long urged governments to ensure online platforms pay fair remuneration for their content. Australia last year made such payments mandatory while Canada introduced similar legislation last month. read more

Register now for FREE unlimited access to Reuters.com

“So far, we have agreements which cover more than 300 national, local and specialist news publications in Germany, Hungary, France, Austria, the Netherlands and Ireland, with many more discussions ongoing,” Sulina Connal, director for news and publishing partnerships, said in blogpost seen by Reuters and expected to be published later on Wednesday. The blog did not say how much publishers were being paid.

Two-thirds of this group are German publishers including Der Spiegel, Die Zeit and Frankfurter Allgemeine Zeitung.

“We are now announcing the launch of a new tool to make offers to thousands more news publishers, starting in Germany and Hungary, and rolling out to other EU countries over the coming months,” Connal said in the blogpost.

The tool offers publishers an extended news preview agreement that allows Google to show snippets and thumbnails for a licensing fee.

Register now for FREE unlimited access to Reuters.com

Reporting by Foo Yun Chee; Editing by Lisa Shumaker

Our Standards: The Thomson Reuters Trust Principles.

.

Categories
Business

Shares drop, yields shoot up after US inflation data

MILAN, May 11 (Reuters) – World shares turned lower on Wednesday and bond yields shot up after US data showed inflation there slowed down less than expected last month, cementing expectations of aggressive rate hikes by the Federal Reserve.

US futures turned negative after data showed US annual consumer price growth slowed to 8.3% in April from 8.5% in March, suggesting that inflation has probably peaked. The number, however, was above the 8.1% analyst had expected.

Paolo Zanghieri, senior economist at Generali Investments, said the data confirmed the view that the return of inflation to more tolerable values ​​will take time.

Register now for FREE unlimited access to Reuters.com

“Overall today’s data add to the case of the strong front-loading called for by (|Fed Chair Jerome) Powell in the last meeting, who also suggested the possibility of two more 50bps rise in June and July,” Zanghieri said. “However, this will keep concern about the possibility of a recession high, and ultimately weakening growth may lead the Fed to temper it tightening after the summer.”

MSCI’s benchmark for global stocks (.MIWD00000PUS) was flat by 1247 GMT, having earlier risen as much as 0.3%. On Tuesday, the index fell to its lowest level since November 2020 on fears Fed tightening could significantly slow down the global economy.

US equity futures turned sharply negative, with the Nasdaq and S&P 500 e-minis down 1% and 0.6% respectively. The pan-European STOXX 600 (.STOXX) equity benchmark index also trimmed gains, and was last up 0.2%.

Money markets ramped up bets of Fed rate hikes by end-2022 to 208 basis points after the US inflation numbers, compared to around 195 bps before.

Earlier in Asia, equities squeezed higher from near two-year lows. Chinese blue chips (.CSI300) rose 1.4% after Shanghai officials said half the city had achieved “zero COVID” status, and after US President Joe Biden said he was considering eliminating Trump era tariffs on China.

Chinese data released on Wednesday, however, showed consumer prices rose 2.1% from a year earlier, more than expected and at the fastest pace in five months, partly due to food prices.

YIELDS SHOOT UP

After falling to their lowest levels in almost a week earlier on Wednesday, benchmark 10-year Treasury yields turned positive after the inflation data, marching back towards the three-year high of 3.203% hit on Monday.

The 10-year yield was last up 6 basis points on the day to 3.0502%, while the 2-year yield , which often reflects the Fed rate outlook, jumped 11 bps to 2.717%.

Euro area government bond yields also sold off following the US data, sending German 10-year yields up 8 bps to 1.084% .

Bets on aggressive Fed tightening have also supported the dollar this year.

The dollar index, which measures its performance against six main peers, reversed earlier weakness and was last up 0.1% to 104.04, closer to the two-decade high of 104.19 reached at the start of the week.

The Fed last week raised interest rates by 50 basis points and Chair Jerome Powell said two more such hikes were likely at the upcoming policy meetings.

There has also been speculation in markets the US central bank will need to move by 75 basis points at one meeting and currently money markets are pricing over 190 basis points of combined rate hikes per year.

“The current problem is that the market is convinced that the Fed is determined to fight inflation and therefore willing to tolerate market volatility and some demand destruction more than in the past. Personally, I’m less convinced of this determination,” said Giuseppe Sersale , fund manager at Anthilia.

Morgan Stanley forecasts 2022 global economic growth to be less than half of last year’s at 2.9%, down from a previous estimate of 3.2%. read more The US bank also cut its year-end target for the S&P 500 by 11% to 3,900 points, while raising its US 10-year yield forecast by 55 bps to 3.15%.

Oil bounced back, buoyed by supply concerns as the European Union works on gaining support for a ban on Russian oil.

Brent rose 2.6% to $105.12 a barrel and US crude rose 3% to $102.77.

Spot gold dipped 0.1% to $1,836.2 an ounce.

Register now for FREE unlimited access to Reuters.com

Reporting by Danilo Masoni in Milan, Sujata Rao in London and Alun John in Hong Kong, Editing by William Maclean and Tomasz Janowski

Our Standards: The Thomson Reuters Trust Principles.

.