2025-05-25 12:59

Nvidia results due on Wednesday, last of Magnificent 7 earnings 30-year US Treasury yield tops 5% during week After rebound, S&P 500 down over 5% from Feb record high NEW YORK, May 23 (Reuters) - An earnings report from semiconductor giant and artificial intelligence bellwether Nvidia (NVDA.O) , opens new tab takes center stage for Wall Street in the coming week, as stocks hit a speed bump of worries over federal deficits driving up Treasury yields. U.S. equities pulled back this week after a torrid rally, as investors turned their attention to tax and spending legislation poised to swell the U.S. government's $36 trillion in debt. Long-dated U.S. Treasury yields rose amid the fiscal worries, with the 30-year yield topping 5% and hitting its highest level since late 2023. Sign up here. Stocks were dealt another blow on Friday when U.S. President Donald Trump targeted the European Union and Apple (AAPL.O) , opens new tab in threats to ratchet up his trade war. Focus will shift to Wednesday's quarterly results from Nvidia, one of the world's largest companies by market value whose stock is a major influence on benchmark equity indexes. "All eyes are going to be on Nvidia's report," said Chuck Carlson, CEO of Horizon Investment Services. "The whole AI theme has been a major driver of the market and Nvidia is at the epicenter of that theme." Nvidia will be the last of the "Magnificent Seven" megacap tech and growth companies to report results for this period. Their stocks have been mixed in 2025 after leading the market higher as a group in the last two years. Nvidia shares are down 2% this year after soaring over 1,000% from late 2022 through the end of 2024 as its AI chip business spurred massive increases in revenue and profits. Nvidia's first-quarter earnings likely jumped about 45% on revenue of $43.2 billion, analysts estimated in an LSEG poll. After big tech companies earlier in the quarter signaled robust AI-related spending, Nvidia can deliver a strong message about AI and how companies' spending plans are faring, said Art Hogan, chief market strategist at B Riley Wealth. "Nvidia can reinvigorate the enthusiasm for that theme." Nvidia, popular among smaller retail shareholders, is an investor sentiment indicator, said Wasif Latif, chief investment officer at Sarmaya Partners. "Given its sheer size and attention that it is commanding, there are going to be a lot of people looking for what happens with the stock," Latif said. U.S.-China relations could also be in focus with Nvidia's report. The company said last month it would take $5.5 billion in charges after the U.S. government limited exports of its H20 artificial intelligence chip to China. Trade developments have whipsawed the stock market this year, especially after Trump's April 2 announcement of sweeping tariffs on imports globally set off extreme asset price volatility. Since then, Trump's easing of tariffs, especially a U.S.-China truce, has helped equities rebound. The benchmark S&P 500 index (.SPX) , opens new tab ended on Friday down 1.3% for 2025, and down 5.6% from its February record high. Stocks slipped on Friday after Trump pushed for a 50% tariff on European Union goods starting June 1 and threatened to impose a 25% tariff on Apple for any iPhones sold, but not made, in the United States. Trump's fiscal plans consumed investor attention for much of the week, especially after Moody's downgraded the U.S. sovereign credit rating due to concerns about the nation's growing debt pile. The U.S. House of Representatives, controlled by Trump's Republican party, on Thursday narrowly passed a tax and spending bill that would enact much of his agenda while adding an estimated $3.8 trillion to the debt over the next decade. The bill is heading to the U.S. Senate for its review. Long-dated government bond yields have been rising globally amid a selloff, although they pulled back toward the end of the week. In the U.S., benchmark 10-year Treasury yields this week hit their highest since February. Bond prices move opposite to yields. Higher yields can diminish the appeal of stocks as they represent higher borrowing costs for companies and consumers, while making fixed income assets relatively more attractive. "The biggest concern from an investment standpoint is that higher rates represent more competition for equities," said Horizon's Carlson. "If rates continue to move higher, that is going to put increasing amounts of pressure on where investors are putting their money." https://www.reuters.com/business/wall-st-week-ahead-nvidia-earnings-focus-rising-us-yields-debt-rattle-markets-2025-05-23/

2025-05-25 08:34

ISLAMABAD, May 25 (Reuters) - Pakistan will allocate 2,000 megawatts (MW) of electricity in the first phase of a national initiative to power bitcoin mining and AI data centres, its finance ministry said on Sunday. The allocation is part of Islamabad's plans to use its surplus electricity to bitcoin mining and AI data centres. Sign up here. Pakistan's energy sector is grappling with challenges, including high electricity tariffs and surplus generation capacity. The rapid expansion of solar energy has further complicated the landscape, as more consumers turn to alternative energy sources to mitigate high costs. The initiative is spearheaded by the Pakistan Crypto Council (PCC), a government-backed body, which is part of a broader strategy to monetize surplus electricity, create high-tech jobs, and attract foreign investment, the ministry said. The allocation is the first phase of a broader, multi-stage digital infrastructure roll-out, it added. https://www.reuters.com/sustainability/boards-policy-regulation/pakistan-allocates-2000-megawatts-electricity-bitcoin-mining-ai-data-centres-2025-05-25/

2025-05-25 07:00

Energy crunch ahead of peak summer demand Deals could cost up to $3 billion at current prices President directs government to do "whatever needs necessary" Domestic output and Israeli supply both down CAIRO/LONDON, May 22 (Reuters) - Egypt is in talks with energy firms and trading houses to buy 40-60 cargoes of liquefied natural gas (LNG) amid a worsening energy crunch ahead of peak summer demand, three sources aware of the matter told Reuters. The country faces spending up to $3 billion at current prices to secure the LNG, squeezing government coffers already under strain to keep the lights on amid falling gas production and a cost of living crisis. Sign up here. President Abdel Fattah al-Sisi on Wednesday directed the government to "preemptively take whatever needs necessary to ensure stable electricity flow," according to a statement. "The government is now in talks to import at least 40 LNG cargoes and around 1 million tons of fuel oil," an industry source familiar with the matter told Reuters. "Gas was the primary focus, given the more flexible payment options available compared to fuel oil, though the latter remains under consideration if LNG prices are unfavourable," the source added. In the past two years, Egypt endured rolling blackouts as natural gas supply fell short of demand. Egypt's own gas output in February hit its lowest level in nine years. The world's most populous Arab country returned to being a net importer , opens new tab of gas last year, buying dozens of cargoes and abandoning plans to become a supplier to Europe as its production tumbled. Egypt’s hard currency crunch has delayed payments to international oil firms, curbing exploration and slowing oil and gas output. The country could now need up to 60 LNG cargoes to cover its 2025 needs, a second trading source said, adding over the long term that could rise as high as 150 cargoes. It is in talks with Qatar, Algeria, Saudi Aramco, and major global trading houses, the sources said. Egypt's Ministry of Petroleum, Qatar Energy, Saudi Aramco and the Algerian Ministry of Energy and Mining did not immediately respond to Reuters requests for comment. Egypt has bought 1.84 million tons (mt) of LNG this year, data from S&P Global Commodity Insights shows. That's almost 75% of its total for 2024. ISRAELI GAS An additional problem has been lower supply from Israel's offshore Leviathan field which has been blamed on scheduled maintenance. That has forced Egypt to halt or reduce gas supplies to several fertilizer factories for at least 15 days. "My factory has come to a complete stop since Saturday. Others are working on partial capacity," the head of a fertilizers factory told Reuters, on the condition of anonymity. A prolonged halt could hit exports of fertilisers, a key source of foreign currency. Egypt relies heavily on imported Israeli gas, which accounts for 40-60% of its total imported supply and about 15-20% of its consumption, JODI data shows. Yet it faces the prospect of paying more for it, as two other industry sources told Reuters that Israel wants to raise its exported gas prices by 25%. Prices for Israeli gas are linked to oil prices which have fallen, while prices of LNG are linked to other benchmarks such as the Japan Korea Marker (JKM) in Asia, gas prices at the Dutch TTF gas hub in Europe, or Henry Hub in the U.S. "Israel wants higher prices, because now they are so low at about $6/mmBtu (million British thermal units) at today's Brent prices, while LNG price is closer to $14/mmBtu. Israel was satisfied when the price was around $7.50 mmBtu," one of the sources said. A spokesperson for the Israeli energy ministry told Reuters that prices in the gas sector are determined through business negotiations between companies. "The Government of Israel is not a party to this negotiation process. This is a business matter," she said. Egypt's Ministry of Petroleum did not immediately respond to a Reuters request for comment. https://www.reuters.com/sustainability/boards-policy-regulation/egypt-talks-buy-40-60-lng-cargoes-amid-energy-crunch-sources-say-2025-05-22/

2025-05-25 05:13

May 25 (Reuters) - Officials from the Democratic Republic of Congo are optimistic they can reach a deal with Washington next month to secure U.S investment in critical minerals alongside support to end a Rwandan-backed rebellion in the country's east, the Financial Times reported on Sunday. Congolese minerals such as tungsten, tantalum and tin, which Kinshasa has long accused neighbouring Rwanda of illegally exploiting, could be exported legitimately to Rwanda for processing under the terms of a peace deal being negotiated by the U.S., Reuters reported last week. Sign up here. An investment deal with the U.S. and separate peace deal with Rwanda were possible "by the end of June", the newspaper said, citing two people close to the negotiations. But potential stumbling blocks remain substantial, the FT said. Reuters could not confirm the report. Congo's Mines Minister Kizito Pakabomba said an agreement with the U.S. would help "diversify our partnerships", reducing the country's dependence on China for the exploitation of its vast mineral riches, the FT reported. Kinshasa views the plundering of its mineral wealth as a key driver of the conflict between its forces and Rwanda-backed M23 rebels in eastern Congo that has intensified since January, accusing Kigali of smuggling tens of millions of dollars worth of minerals over the border each month to be sold from Rwanda. Washington is pushing for a peace agreement between the two sides to be signed this summer, accompanied by minerals deals aimed at bringing billions of dollars of Western investment to the region, Massad Boulos, U.S. President Donald Trump's senior adviser for Africa, said earlier this month. "Both participants have committed to work to find peaceful resolutions to the issues driving the conflict in eastern DRC, and to introduce greater transparency to natural resource supply chains. Respect for each country's territorial integrity is at the center of the process," a U.S. State Department spokesperson told Reuters on Sunday. Rwanda's defensive measures along the border are necessary as long as threats and the cause of insecurity in the DRC persists, Yolande Makolo, a Rwandan government spokesperson said, according to the FT. https://www.reuters.com/world/africa/congo-eyes-us-minerals-deal-by-end-june-ft-reports-2025-05-25/

2025-05-25 01:41

China Q1 domestic gas output rises 2.7 bcm, pipe gas supply up 1.2 bcm, CNOOC says Jan-April LNG imports fall 31% yoy - customs data Rise in domestic gas supplies, mild winter, tariffs slow LNG imports BEIJING, May 23 (Reuters) - (This May 23 story has been corrected to clarify that Cederic Cremers is the president for integrated gas, not the executive vice president LNG, in paragraph 16) China's rising natural gas output and pipeline supply are slowing its liquefied natural gas imports this year, capping prices in the region, but industry executives expect LNG demand from its industrial and power sectors to grow in the long run. Sign up here. Imports to the world's top LNG importer fell to 20 million metric tons during the first four months of this year, down from nearly 29 million tons in the corresponding period last year, customs data showed, due to mild weather and buyer resistance to higher prices. Chinese firms are also re-selling instead of importing U.S. cargoes after Beijing imposed a 15% import tariff in a trade war with Washington. In the first quarter, China's domestic gas production rose 2.7 billion cubic metres (bcm) while pipeline gas imports increased 1.2 bcm, said Zhu Yanyan, general manager trading and commodities centre at CNOOC Gas and Power Group. Meanwhile, LNG imports fell 20% or 5.7 bcm, she added. "Our domestic gas and pipeline gas are covering the loss of LNG, because LNG is quite expensive," she told delegates at the World Gas Conference. Consultancy SIA Energy's CEO Li Yao expects China's gas output and piped gas imports to rise by 13-15 bcm and 8 bcm, respectively, this year. "Domestic and imported pipeline gas can probably more than offset the declining LNG imports and the demand slowdown caused by the ongoing trade war," she said. "Chinese LNG demand has struggled so far this year with mild weather and economic uncertainty, but the expectation is for a recovery driven by lower prices, economic stimulus, and more stable relations with the U.S.," Mercuria's Executive Vice President Gas & LNG Steve Hill said. DEMAND DRIVE In the long run, Chinese firms forecast gas demand will continue to grow in the next decade, requiring more LNG imports. The president of China Oil and Gas Pipeline Network Corp, or PipeChina, expects gas demand to reach 650-700 bcm by 2030-2035, while the chairman of Sinopec Corp forecasts gas demand peaking at about 620 bcm between 2035 and 2040. State-owned China National Petroleum Corp (CNPC) and Sinopec expect China's natural gas consumption to rise about 6% this year to 448.5 bcm and 458 bcm respectively. ENN Natural Gas (600803.SS) , opens new tab, one of China's largest private gas distributors, expects gas demand to reach 550-600 bcm by 2030. "Although growth is slowing down, the long-term trend remains upward, even in the 2030-2060 period," ENN's Vice President Su Li told reporters. ENN aims to expand its long-term LNG supply portfolio to meet growing domestic sales and supply overseas markets, she added. Shell's (SHEL.L) , opens new tab president for integrated gas, Cederic Cremers, said: "Industry continues to be a key vector forward rather than power, and also more and more the transport market, in particular heavy transport," referring to the conversion of diesel trucks to LNG in China. https://www.reuters.com/business/energy/wgc-rising-gas-output-pipeline-supplies-slow-chinas-lng-demand-2025-05-23/

2025-05-25 01:13

GHINNI GHINNI, Australia, May 25 (Reuters) - Helicopters were airdropping animal feed on Sunday to farmers in Australia stranded by floods that have killed five and isolated tens of thousands in the country's southeast. Recovery was under way in the mid-north coast region of New South Wales state after days of flooding cut off towns, swept away livestock and destroyed homes. At least 10,000 properties may have been damaged in the floods, which were sparked by days of incessant rain, authorities estimate. Sign up here. The floodwaters "trashed" Dan Patch's house in rural Ghinni Ghinni near hard-hit Taree, and some cattle on the property have gone without food for days, he said. "It's the worst we've ever seen," Patch told Reuters. "It's the worst everybody's seen around this area." About 32,000 residents of Australia's most populous state remained isolated due to floodwaters that were slowly starting to recede, the state's Emergency Services posted on the X platform. "The New South Wales government is providing emergency fodder, veterinary care, management advice and aerial support for isolated stock," state Agriculture Minister Tara Moriarty said in a statement. It said 43 helicopter drops and around 130 drops by other means had provided "isolated farmers with emergency fodder for their stranded livestock". At their peak, the floods isolated around 50,000 people, submerging intersections and street signs in mid-north coast towns and covering cars up to their windshields, after fast-rising waters burst river banks. Five deaths have been linked to the floods, the latest a man in his 80s whose body was found at a flooded property about 50 km (30 miles) from Taree, police said. Taree sits along the Manning River more than 300 km (190 miles) north of the state capital, Sydney. Prime Minister Anthony Albanese said on Saturday that conditions remained critical in flood-affected regions as clean-up efforts began. Australia has been hit with increasing extreme weather events that some experts say are the result of climate change. After droughts and devastating bushfires at the end of last decade, frequent floods have wreaked havoc since early 2021. https://www.reuters.com/business/environment/australian-authorities-airdrop-supplies-farmers-stranded-by-flood-crisis-2025-05-25/