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Oil falls after loadings resume at key Russian export hub
The oil prices dropped on Monday, wiping out the gains of last week, as loadings were resumed in the Black Sea port of Novorossiysk, which had been suspended for two days following an attack by Ukraine. Brent crude futures fell 53 cents or 0.82% to $63.86 per barrel at 0423 GMT. U.S. West Texas Intermediate crude futures traded at $59.53 per barrel, down 56c or 0.93% since Friday's closing price. Both benchmarks gained more than 2% Friday, ending the week modestly after exports at Novorossiysk & a Caspian Pipeline Consortium Terminal in the neighbouring city were suspended. This affected the equivalent of 2% global supply. According to two sources in the industry and LSEG, oil loadings resumed at Novorossiysk on Sunday. Ukraine's increased attacks on Russia's infrastructure for oil remain a concern as further disruptions are possible. Ukraine's military announced on Saturday that it had struck Russia's Ryazan Oil Refinery. Kyiv General Staff confirmed on Sunday that it had also struck the Novokuibyshevsk Oil Refinery in Russia’s Samara Region. Toshitaka Takawa, an analyst with Fujitomi Securities, said that investors are trying to assess how Ukraine's attack will affect Russia's oil exports over the long-term, as well as locking in profits following last Friday's rally. "Overall, there is still a perception of an oversupply due to OPEC+'s production increases," he added, adding that WTI will likely stay around $60 a barrel and fluctuate within a $5 range. Investors also monitor the impact of Western Sanctions on Russian trade and supply flows. After November 21, the United States banned deals with Russian oil firms Lukoil, and Rosneft to encourage Moscow into peace talks on Ukraine. Donald Trump, the U.S. president, said on Sunday that Republicans were working on legislation to impose sanctions against any country that does business with Russia. He also said that Iran could be added to this list. Earlier in the month, OPEC+ decided to raise December production targets by 137,000 barrels a day, just as they did for October and November. The group also agreed to put a stop to the increases during the first quarter next year. ING stated in a recent report that it expected the oil market to remain in a surplus until 2026. It warned of increased supply risks, as Ukraine intensified drone attacks on Russian energy installations and Iran seized an oil tanker in Gulf of Oman following its transit of the Strait of Hormuz. This is a major route used by about 20 million barrels of oil a day. Last Tuesday, the latest data on positioning showed that speculators had increased their net-long positions in ICE Brent from 164 867 lots to 12,636 over the previous reporting week. ING stated that this was primarily driven by short-covering, and suggested that some participants were reluctant at the moment to be short due to supply risks associated with uncertainty regarding sanctions. Baker Hughes, an oil services company, reported on Friday that the number of oil rigs in the United States increased by three in the week ending November 14. Reporting by Yuka obayashi in Tokyo, Sam Li in Beijing and Jamie Freed. Editing by Sonali Paul & Jamie Freed.
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Japan's tourism share falls as diplomatic dispute with China worsens
After China warned its citizens not to travel to its North Asian neighbor following an increasing diplomatic split over Taiwan, shares in Japanese tourism companies plunged Monday. Isetan Mitsukoshi is a department store with a large number of Chinese customers. Its sales have dropped 11.4% and are on track to be the largest drop in over a year. Tokyo Disneyland operator Oriental Land dropped 5.1% while Japan Airlines fell 3.9%. China warned Japan on Friday that it would suffer a "crushing defeat" if Japan used force to interfere over Taiwan and warned Chinese citizens not to visit Japan. Kyodo reported that Tokyo asked Beijing to take "appropriate steps" in response to the travel warning on Saturday. Tourism has grown to be a major part of Japan's economic growth, largely due to the weakening yen. According to the Japan National Tourism Organization, mainland Chinese tourists accounted for about 24% (second most) of all visitors to Japan in September. According to Takahide Kuchi, executive economist of Nomura Research Institute, the Beijing travel boycott could cause Japan's gross domestic product (GDP) to fall by 0.36 percent on a yearly basis. Ryohin Keikaku (the operator of Muji stores) dropped 9.4% on the Tokyo stock exchange. Fast Retailing has over 900 Uniqlo shops in mainland China. Its shares dropped by 5.6%. The Nikkei index of stocks fell 0.7%. Tensions between Tokyo and Beijing have heated up since Japan's newly elected Prime Minister Sanae Takaichi said on November 7 that a Chinese attack on Taiwan could amount to a "survival-threatening situation" and trigger a potential military response from Tokyo. According to Alicia Garcia-Herrero of Natixis, the chief economist for Asia Pacific, a diplomatic rift could be more damaging to Japan than a mere dent to its tourism industry. She said that the Japanese government's insistence on using rare earth metals has only marginally decreased since it began to diversify. Over 90% of rare earths are produced in China. Rare earth magnets are also made there. They're essential to a variety of technologies. Chinese companies that have exposure to the Japanese markets also suffered. The shares of Linkage software, whose sales are largely derived from Japan, dropped 3.5%. Airline companies were also hit hard, with mainland listed shares of Air China (China Eastern) and China Eastern falling by more than 2%.
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Six bus passengers killed in Central Vietnam by a landslide
State media reported that at least six people died in central Vietnam on Sunday night when a bus they were riding on was struck by a landslide. Heavy rains pounded the region on Monday. Online newspaper VnExpress reported that the bus was carrying 32 passengers and was on its way from Da Lat towards Nha Trang at the time of this incident. According to the report, 19 passengers were also injured by the landslide that occurred on Khanh Le Pass due to heavy rain. According to the report, two passengers are still trapped in the bus which is partially buried under mud and stones. The report added that rescuers were on the scene. The report included a photo that showed the entire road covered with soil and large rocks. VnExpress reports that three more people are missing from a landslide in Danang. (Reporting and editing by Jamie Freed; Khanh Vu)
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FAA ends mandatory cuts on domestic US flights
Federal Aviation Administration announced late Sunday that it will end mandatory cuts in domestic flight at 40 major U.S. Airports at 6 am. Monday morning, ET (1000 GMT), the Federal Aviation Administration eased restrictions imposed during the shutdown due to concerns about air traffic control. Bryan Bedford, FAA administrator, said that the decision "reflects a steady decline in the staffing concerns." FAA removed restrictions at certain airports on general aviation and space launches. Airlines were expecting this move. On condition of anonymity, several major airlines said that they did not cancel any flights on Monday and had no plans to do so. Airlines for America is a trade association that represents American Airlines, United Airlines Delta Air Lines Southwest Airlines among others. The group declined to comment. The FAA reduced the requirement for flight cuts from 6% down to 3% late Friday evening, despite the fact that airlines were not complying with it anyway. Cirium, a firm that analyzes aviation data, reports that carriers cancelled just 0.25 percent of flights on Sunday at these 40 airports. This is less than the normal cancellation rate. Cirium reported that the cancellation rate in the United States for Sunday was only 0.36%. They interpreted this as a sign of operations returning to normal. The FAA's order was much higher. On Sunday, the FAA said it had received reports that carriers were not complying with the emergency order. The agency is assessing and reviewing enforcement options." The FAA can seek fines of up to $75,000.00 for each flight that exceeds the limits. FAA officials initially aimed to gradually increase the reductions in domestic flights to 10%, but on November 12, they decided to freeze this requirement at 6% as disruptions decreased dramatically after the shutdown ended. The agency initially ordered flight reductions to minimize disruptions to travel caused by a shortage of air traffic control during the shutdown of the federal government, when many controllers stopped coming to work due to not being paid. There are about 3,500 controllers below the FAA's target staffing level. Before the shutdown, many had already been working six-day weekends and mandatory overtime. After October 1, when the shutdown started, thousands of flights were cancelled and delayed due to air traffic controllers' absence. Air traffic controllers, FAA employees, and others began receiving their back pay on Friday, just two days after the end of a record-breaking 43-day government shutdown. The amount is about 70%.
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Oil falls after loadings resume at key Russian export hub
The oil prices dropped in the early Asian trading on Monday, wiping out the gains of last week, as loadings were resumed at Novorossiysk, the major Russian export hub, after a suspension of two days at the Black Sea Port that was hit by an attack from Ukraine. Brent crude futures fell 58 cents or 0.9% to $63.81 per barrel at 0050 GMT. U.S. West Texas Intermediate crude futures traded at $59.50 per barrel, down by 59 cents or 1.0% since Friday's closing. The benchmarks both rose by more than 2% to close the week on a modest note. Exports at Novorossiysk, and the Caspian Pipeline Consortium's terminal in the vicinity, were suspended, which affected the supply of the global equivalent of 2%. Two industry sources and LSEG data confirmed that oil loadings resumed at the port of Novorossiysk on Sunday. Ukraine's increased attacks on Russia's infrastructure for oil remain a concern as further disruptions are possible. On Sunday, the General Staff of Kyiv announced that it had attacked the Novokuibyshevsk refinery located in Russia's Samara Region. Toshitaka Takawa, an analyst with Fujitomi Securities, said that investors are trying to assess how Ukraine's attack will affect Russia's oil exports over the long-term, as well as locking in profits following last Friday's rally. "Overall the perception of an oversupply due to OPEC+'s production increases is still there," he added, adding that WTI will likely stay around $60, fluctuating in a $5 range. Investors also monitor the impact of Western Sanctions on Russian trade and supply flows. After November 21, the United States banned deals with Russian oil firms Lukoil, and Rosneft to encourage Moscow into peace talks on Ukraine. Donald Trump, the U.S. president, said on Sunday that Republicans were working on legislation to impose sanctions against any country that does business with Russia. He also said that Iran could be added to this list. Earlier in the month, OPEC+ decided to raise December production targets by 137,000 barrels a day, just as they did for October and November. The group also agreed to put a stop to the increases during the first quarter next year. Baker Hughes, an oil services company, reported on Friday that the number of oil rigs in the United States increased by 3 in the week ending November 14. (Reporting and editing by Yuka Obayashi)
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Zelenskiy seals air defence and warplane deal in France
On Monday, Ukrainian President Volodymyr Zelenskiy will likely seal deals with France for the supply of warplanes, missiles and air-defense capabilities. He is looking to strengthen his army's ability to fight Russia on a long-term basis. Zelenskiy has been in Paris to meet with French President Emmanuel Macron. In recent weeks, Russia has intensified its drone and missile attacks against Ukraine. Moscow also reported a sharp increase in ground gains in the southeastern Zaporizhzhia area. "An historic agreement was also prepared with France. There will be a substantial strengthening of our combat aircraft, air defence and other defence capability. This will happen on Monday, according to the schedule of the visit," Zelenskiy wrote in a Sunday post on X. Since several weeks, there have been discussions about how France can provide more military assistance for Kyiv’s air defences. This is despite the political and budgetary instabilities in Paris which has raised doubts over what France can do. Macron promised last month that he would offer additional Mirage fighter planes after originally promising to deliver six. He also pledged to provide a new batch Aster 30 surface to air missiles produced by the European group MBDA for the SAMP/T batteries of Kyiv's air defence batteries. According to two sources briefed in the matter, Kyiv will get more out of Monday's trip. The agreement could be a 10-year strategy aviation agreement, which would signify the delivery to Kyiv multi-role Rafale combat aircraft made by Dassault. The bulk of the aircraft would come from French stock, but the majority will be purchased in the long term as part of Ukraine's effort to increase its fleet to 250 planes over the next 25 years, including the U.S. F-16, and Sweden's Gripen. The rigorous training program for pilots of the future would require a lot of time. Two sources have said that Monday may also see more SAMP/T systems being ordered, either from French stock or via long-term orders for next-generation systems including missiles and antidrone systems. Sources said that it was unclear how these deals would finance. Macron's office stated that the goal of the media briefing was to "put French expertise in the arms industries at the service to Ukraine's defense" and to "enable Ukraine to acquire the systems needed to respond to Russian aggression". According to the schedule of the French presidency, which did not provide any specifics, Zelenskiy is scheduled to attend a morning briefing with various manufacturers including Dassault before signing a contract and a letter-of-intent later that day. In the afternoon, a separate forum will bring together Ukrainians and French companies working in the drone industry to discuss how they can work together. France and Britain have pushed to create a coalition of 30 countries that are willing to send assets and troops to Ukraine or its western border once a peace agreement with Russia has been agreed. The key objective is for Ukraine to receive enough long-term economic and military aid to maintain its army so that it can deter future Russian attacks. (Reporting and editing by Mark Heinrich; John Irish is the reporter)
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Hair dye and nail art are allowed! Japanese companies relax their rules to win workers' loyalty
Hinako, 22, moved to Tokyo in 2011 and chose to work at Don Quijote a discount retailer because it didn't really care about the colour of her hair. Mori, who was wearing ash blonde hair with dark and light blue streaks at the time of her interview, likes to change the colour of her hair every six weeks. She had a very different experience when she worked for a Japanese convenience store chain which required black or dark brown locks. "One day, I dyed my hair blonde. Mori said that the next morning, she was told either to wear a wig of use spray-on color. It was very stressful." RETAILERS RELEASE RULES In response to Japan's tight labor market, many companies have followed in the footsteps Don Quijote. A Pan Pacific International Group company. Three years ago, it relaxed its hair and nail varnish rules. Now nearly a quarter have brightly colored hair. If brown hair is added, then 55% of their employees do not have black hair. Fuji Yakuhin has, for instance, eliminated a number of rules that apply to non-pharmacists. The drugstore chain now allows all hair colours, nail art and heavy makeup. It also allows for any type of ring, while previously only wedding bands were allowed. Tokyu Store, the supermarket operator, has also relaxed restrictions on hair colors, hair styles and accessories, as well as nail polish, piercings, and nail varnish. Japan Inc. has gradually relaxed its dress code over the last two decades. The "Cool Biz", a campaign by the Ministry of Environment in 2005, encouraged people to ditch their jackets and ties during summer months. Since then, the summer dress code has become more relaxed, uniforms for department store employees are no longer mandatory, and white gloves for cab drivers have been made optional. Smaller companies are more likely to be affected by the latest changes in hair colour, nail varnish and accessories. They face greater labour shortages and have less flexibility to offer wages that are competitive. Some big listed companies have relaxed their dress codes for this year. Japan Airlines joined Skymark Airlines and Tokyo Metro, a budget airline in the United States, to allow employees to wear sneakers at work. LABOUR CRUNCH PRESSURE According to OECD statistics, Japan's population of working age has fallen by 16% from its peak in 1995. This has led to fierce competition among employers for employees. A survey shows that two-thirds (67%) of Japanese companies believe the labour shortage has a significant impact on their business. According to Tokyo Shoko Research, it was the main cause of Japanese bankruptcy in April-September. The number of failures reached their highest level for a first half period in 12 years. This gives young people more control, at least in terms of part-time employment. According to a survey conducted by Mynavi, a job information and recruitment company in April, two-thirds believe that students should have the option to decide how they want to look when working part-time. One third of students said that they had withdrew job applications due to dress codes. Shota Miyamoto is a researcher for Mynavi. "Students don't only want to gain experience and earn money. They seem to be looking for something more - a feeling of comfort or freedom," he said. He added that they didn't expect the same from full-time employment. Many companies are not comfortable with the Western style of facial or multiple piercings. Tattoos, which are traditionally associated with yakuza (the Japanese mafia), should be covered up by workers so that they don't intimidate their customers. Many of the traditional Japanese giants have yet to adopt these new changes. Sumitomo Mitsui Banking Corp., for example says that it does not have policies regarding hair or nail varnish, but employees are generally aware of the fact that they shouldn't make waves with their appearance. (Reporting and editing by Edwina G. Gibbs; Satoshi Sugiyama)
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Pentagon claims it has struck another suspected drug ship in the Pacific, killing 3
Pentagon: The United States carried out a second attack on a suspected drug-trafficking boat on Saturday in the eastern Pacific, killing three of the people on board, according to the Pentagon. In a social media post, the U.S. Southern Command said that intelligence confirmed the vessel's involvement in illicit narcotics trafficking, transiting on a known narcotrafficking route and carrying narcotics. Joint Task Force Southern Spear struck the boat in international waters, according to an announcement. This latest operation marked the 21st attack by the U.S. Military on drug boats since early September, in what they have called a justifiable effort to stop the flow of drugs into the United States. Pentagon figures show that the strikes killed over 80 people. Human rights groups, lawmakers in the U.S. Congress and U.S. ally countries have raised concerns about the legality. The Trump administration claims it has legal authority to conduct the strikes. The Justice Department has provided a legal opinion which justifies the strikes and asserts that U.S. Military personnel who perform the operations are not prosecutable. (Reporting and editing by Sergio Non, Edmund Klamann and Joseph Tanfani)
Japan's tourism share falls as diplomatic dispute with China worsens
After China warned its citizens not to travel to its North Asian neighbor following an increasing diplomatic split over Taiwan, stocks in Japan related to tourism plunged.
Isetan Mitsukoshi is a department store with significant sales from Chinese tourists. Its stock dropped 10.7% and it's on track to have its largest drop in over a year. Tokyo Disneyland operator Oriental Land dropped 5.9%, and Japan Airlines (JAL), fell 4.4%.
Beijing warned Chinese nationals against traveling to Japan on Friday. Minoru Kihara said on Monday that any attempt by China to restrict travel will violate the agreement between leaders.
Japanese media reported that senior Japanese diplomat Masaaki KANAI will visit China on Monday in order to meet with counterpart Liu Jinsong to try to ease tensions.
The China-Japan conflict over Taiwan, and Beijing's advice to avoid travel to Japan, will have a negative impact on consumer-facing industries in the near future. This was stated by Masahiko LOO, senior fixed income analyst at State Street Investment Management.
He added that "Chinese tourists account for approximately 25% of Japan's traffic inbound, making department shops, luxury retail and hospitality especially vulnerable."
Tourism has grown to be a major part of Japan's economic growth, fueled by the weakening yen. According to the Japan National Tourism Organization, more than 650,000 Chinese tourists visited Japan in September. They were only surpassed by South Koreans.
According to Takahide Kuchi, executive economist of Nomura Research Institute, the Beijing travel boycott could cause Japan's gross domestic product (GDP) to fall by 0.36 percent on an annual basis.
ANA Holdings said that it would continue to monitor the situation and added that the status of reservations for flights from or to China had not changed so far. Its shares fell 3.5%.
Spring Japan, the low-cost subsidiary company of JAL, has confirmed that there have been no changes made to their flight schedule, although they are receiving inquiries about cancellations from customers.
Fast Retailing, the operator of more than 900 Uniqlo shops in China, has dropped by 5.3%. Ryohin Keikaku (the operator of Muji stores) is down 9.4%. The Nikkei index, the benchmark for Japanese stocks, was down by 0.4%.
Tensions between Tokyo and Beijing have flared up since Japan's newly elected Prime Minister Sanae Takaichi said on November 7 that a Chinese attack on Taiwan could amount to a "survival-threatening situation" and trigger a potential military response from Tokyo.
The spat was a result of a disagreement between Japan and the United States over the decision to discharge wastewater from the Fukushima Daiichi reactor into the ocean. This dispute has been affecting trade and tourism for many years.
According to Alicia Garcia-Herrero of Natixis, Asia-Pacific Chief Economist, a diplomatic rift between Japan and China could have a greater impact on Japan's tourism sector.
She said that the Japanese government's insistence on using rare earth metals has only marginally decreased since it began to diversify.
China produces 90% of rare earths and rare-earth magnets in the world, which are used for a variety of technologies.
Chinese companies that have exposure to the Japanese markets also suffered. The shares of Linkage Software, a software company that derives the majority of its revenue from Japan, dropped 3%.
South Korea's Tourism Industry will benefit from the economic turmoil in Asia. Lotte Tour Development, based in Seoul, saw its shares rise 9.6% on the Monday.
(source: Reuters)