2025-05-21 12:46
FRANKFURT, May 21 (Reuters) - Deutsche ReGas on Wednesday said it will receive 112 million euros ($126.97 million) worth of public grants from the European Union's Hydrogen Bank for a renewable hydrogen project at Lubmin on Germany's Baltic Sea coast. The grant comes under EU funding schemes to promote electrolysis processes that use carbon-free electricity to kick-start a local economy producing hydrogen as an alternative to fossil fuels. Sign up here. ReGas said the hydrogen production at Lubmin, for which the funding will be spread over 10 years, can cut 1.6 million metric tons of carbon dioxide. The EU subsidy is designed to help to close price differences between green hydrogen production costs and conventional energy prices. The funding was awarded in a 992 million euro auction, the second for the Hydrogen Bank, in which 15 projects from five countries were awarded money, ReGas said in a statement. ReGas is a private developer and operator of energy infrastructure, including floating storage and regasification units and hydrogen electrolysers. The Lubmin plant, located near where ReGas used to import liquefied natural gas on a floating reception terminal in the aftermath of the 2022 energy crisis, aims to make use of access to offshore wind energy and Baltic Sea water that can be used in the electrolysis process to make hydrogen. It is also close to both power transmission grids and a new hydrogen core transport network, set to start between 2025 and 2032. ReGas has moved its LNG operations away from Lubmin to develop an LNG landing terminal in the nearby German port area of Mukran on Ruegen island. "From the very beginning, our goal was to secure energy supply and, at the same time, to push forward the energy transition," said managing director Ingo Wagner. Grant agreements for the hydrogen projects selected by the EU in the auction round are expected to be signed by September/October, an EU document attached by ReGas said. ($1 = 0.8821 euros) https://www.reuters.com/sustainability/boards-policy-regulation/deutsche-regas-gets-eu-funding-lubmin-hydrogen-project-2025-05-21/
2025-05-21 12:29
LONDON, May 21 (Reuters) - The London Stock Exchange Group's (LSEG.L) , opens new tab FTSE Russell unit has dropped plans to add Chicago Board Options Exchange owner Cboe (CBOE.Z) , opens new tab to the group of currency data providers used to calculate its WMR FX benchmarks after pushback from users. FTSE Russell proposed adding Cboe's data for ten top currencies almost a year ago, but it said on Wednesday that user consultations showed it "could not be considered sufficiently equivalent to the current WMR Spot FX Benchmark primary data sources". Sign up here. A spokesperson for Cboe said it was disappointed by the decision and that it looked forward to engaging with both FTSE Russell and the wider FX industry as it seeks to enhance the governance around the WMR Benchmarks. FTSE Russell's statement added that differences around liquidity, trading parameters and availability suggested there would be "significant practical challenges and complexities" in incorporating the Cboe data. It may have also "diminished the utility of the benchmarks by influencing market behaviors" and "reduced the representativeness of the WMR Spot FX Benchmarks by allowing curated transactions that are not sufficiently transparent to market participants". FTSE Russell said it was also starting a consultation on removing State Street's Currenex data from its euro, yen and Swiss franc WMR FX benchmarks. The consultation will focus on "operational considerations" of the proposed removal, such as the appropriate notice period for market stakeholders. A confirmation, including the effective date of the change, will be provided "as expediently as possible", it added, saying that Currenex data would continue to be used until then. Currenex did not immediately provide a response to FTSE Russell's announcement. Reuters provides news for LSEG's news and data terminal Workspace. https://www.reuters.com/markets/us/lseg-drops-plan-add-cboe-data-wmr-fx-benchmarks-2025-05-21/
2025-05-21 12:19
MADRID, May 21 (Reuters) - Motorway and airports operator Ferrovial had a surprise first-quarter revenue bump from freight traffic on toll roads in the United States and Canada, probably related to imports in anticipation of sweeping U.S. tariffs, its CFO told Reuters. The Spanish company's revenue surge despite adverse winter weather follows a wider trend of increased commercial activity at U.S. ports and roads that preceded U.S. President Donald Trump's April 1 announcement of new tariffs, many of which remain suspended. Sign up here. Ferrovial's first-quarter revenue from its toll road business in North America rose 14%, it reported in quarterly results last week, demonstrating growth in a country where it plans to concentrate its investments in the coming years. "We were the first to be surprised that (the results) were even better than expected," Chief Financial Officer Ernesto Lopez told Reuters late on Tuesday. "There has been quite a lot of activity at peak times, especially a higher percentage of heavy or commercial vehicles," Lopez said, adding that public data pointed to traffic on toll roads remaining above last year's levels. Ferrovial operates toll roads in the U.S. and the 407 highway in the Canadian province of Ontario bordering the United States. It also plans to submit bids for between four and six new motorway construction projects in California, Tennessee and North Carolina. Lopez said the increased commercial traffic on highways could be influenced by a higher volume of goods crossing the Mexican border into one of its managed lanes in Texas. In North Carolina, traffic also received a boost from more companies ordering employees back to the office. The U.S. trade deficit in goods widened to a record high in March as businesses ramped up efforts to bring in merchandise and pre-empt some of the tariffs impact, according to the U.S. Commerce Department's Census Bureau. Imports of goods to the U.S. rose to a record high of $342.7 billion, driven by consumer goods and cars. https://www.reuters.com/world/americas/ferrovial-highway-revenue-boosted-by-pre-tariff-us-traffic-2025-05-21/
2025-05-21 12:15
Budget held up by coalition disagreements New version sees slightly higher deficit, debt peak Spending cuts broadly in line with expectations CAPE TOWN, May 21 (Reuters) - South Africa made only minor adjustments to its spending plans and deficit projections in a third budget presented on Wednesday that was overshadowed by a meeting between its president and U.S. leader Donald Trump later in the day. Finance Minister Enoch Godongwana had to appear before lawmakers in Cape Town for a third time after disagreements in the ruling coalition derailed two previous budget versions. Sign up here. The chief bone of contention was Godongwana's attempt to raise value-added tax, which he had to abandon after parties across the political spectrum rejected it and the second-biggest party in the coalition the Democratic Alliance (DA) took the government to court. The new budget, which the DA said it should be able to support, projected a consolidated budget deficit of 4.8% of gross domestic product (GDP) in the fiscal year that started on April 1, wider than the deficit of 4.6% of GDP seen in the previous version in March. Gross debt is seen stabilising at 77.4% of GDP in the 2025/26 fiscal year, higher than the 76.2% of GDP projected before. Medium-term revenue estimates were revised down by 61.9 billion rand ($3.5 billion) while consolidated spending was lowered by 69.4 billion rand. "Expenditure cuts were broadly in line with what the market had expected," said Michelle Wohlberg, a fixed-income specialist at local bank Rand Merchant Bank. "The bigger concern for markets seems to be the Trump-Ramaphosa meeting later this afternoon," she said. South African President Cyril Ramaphosa is due to meet Trump in the White House from 1530 GMT in an attempt to reset relations strained by Trump's repeated criticism of South Africa. SLUGGISH GROWTH Since the 2008-2009 global financial crisis Africa's biggest economy has struggled to achieve growth rates high enough to make a meaningful dent in levels of inequality and unemployment that are among the highest worldwide. In the past two decades, public debt has shot up as the government has failed to rein in runaway spending, prompting successive credit rating downgrades. The economy is now expected to expand 1.4% this year, down from growth of 1.9% estimated in March as the global backdrop has worsened since Trump launched his global trade war. Analysts said the government's aim for debt to peak this year looked optimistic, a concern previously flagged by ratings agencies. One element missing from the budget was an announcement of a lower inflation target, which traders had speculated would come after comments by a deputy finance minister at an investment conference last week. Deputy central bank governor Fundi Tshazibana told reporters that policymakers were not yet ready to change the inflation target from a range of 3%-6% but that there was broad consensus the current target was too broad and out of line with South Africa's trading partners. ($1 = 17.8774 rand) https://www.reuters.com/world/africa/south-africa-sees-wider-budget-deficit-higher-debt-after-scrapping-vat-hike-2025-05-21/
2025-05-21 11:13
TSX ends down 0.8% at 25,839.17 10-year yield rises to near four-month high Real estate falls 2.1%, tech ends 2.3% lower Canada Goose jumps 19.1% on quarterly sales May 21 (Reuters) - Canada's main stock index pulled back from a record high on Wednesday as long-term borrowing costs climbed and investors took stock of recent gains for the market. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) , opens new tab ended down 214.46 points, or 0.8%, at 25,839.17, after posting a record closing high on Tuesday. Sign up here. The decline ended a 10-day winning streak for the market, the longest such run since October 2021. "Yields have popped up, which has caused some concern for investors and I think also just a pause based on the recent strength in the market," said Stan Wong, a portfolio manager at Scotia Wealth Management. The Canadian 10-year yield rose 8.4 basis points to 3.382%, its highest level since January 16, as investors reduced bets on Bank of Canada interest rate cuts after domestic data on Tuesday showed underlying inflation heating up in April. U.S. Treasury yields also climbed as investors monitored the progress of a tax bill in the U.S. Congress that could swell the government's debt load. The interest-rate sensitive real estate sector fell 2.1% and technology ended down 2.3%. Higher bond yields reduce the value to investors of the long-term cash flows that high-growth tech stocks are expected to produce. Heavily weighted financials lost 1% ahead of the start on Thursday of earnings season for Canada's big banks. The lenders are bracing for trade uncertainty and are expected to have shored up loan loss reserves in the second quarter. The materials group, which includes metal mining shares, was the only one of 10 major sectors to end higher, adding 1.3%. "Gold prices are near record highs and that's brought a lot of momentum to the sector," Wong said. Shares of Canada Goose Holdings Inc (GOOS.TO) , opens new tab jumped 19.1% after the luxury retailer reported stronger-than-expected quarterly sales. https://www.reuters.com/markets/europe/tsx-slips-amid-trade-uncertainty-debate-over-trumps-tax-bill-2025-05-21/
2025-05-21 11:05
LONDON, May 21 (Reuters) - What matters in U.S. and global markets today By Mike Dolan , opens new tab, Editor-At-Large, Financial Industry and Financial Markets Sign up here. In an already bad week for long bonds, an aggravated inflation picture around the world has added another irritant. I discuss this and all the market news below. Be sure to check out my column today, where I explore why key foreign creditors might be reassessing their holdings of U.S. debt and what this could mean for funding America's rising deficit. Today's Market Minute * President Donald Trump's tax cut and spending bill faces a critical stress test on Wednesday as Republicans try to overcome internal divisions about cuts to the Medicaid health program and tax breaks in high-cost coastal states. * Companies importing goods into the United States from China are rushing to convert warehouses into facilities that are exempt from President Donald Trump's tariffs until they are ready to sell the merchandise. * Oil prices gained more than 1% on Wednesday after reports of Israel preparing a strike on Iranian nuclear facilities raised fears that a conflict could upset supply availability in the key Middle East producing region. * Britain suffered a bigger-than-expected inflation surge in April, including in areas watched closely by the Bank of England which investors now believe will have to slow its already gradual pace of interest rate cuts. * Morgan Stanley upgraded its stance on U.S. equities to "overweight", citing a slowing but still expanding global economy despite policy uncertainty. * Japanese exports rose 2% in April from a year earlier but shipments to the U.S. fell 1.8%, data from the Ministry of Finance showed on Wednesday. * Global electricity generation from solar farms is set to exceed output from nuclear reactors for the first time this summer, marking an important milestone in the continuing growth of solar power within global energy systems. Bad week for bonds Britain and Canada reported above-forecast core inflation jumps for April over the past 24 hours - cutting across interest rate easing expectations in both countries and sending long-term government borrowing costs , higher for both. On top of that, the crude oil prices jumped more than 1% on Wednesday and briefly clocked their highest in a month after CNN reported Israel was preparing to strike Iran's nuclear facilities. The darker global inflation picture comes as U.S. Federal Reserve officials remain wary of tariff-related price hikes in America. Atlanta Fed chief Raphael Bostic said U.S. businesses may have run out of strategies to delay changing prices or employment in response to higher import taxes and the economy could soon face a wave of price increases. "If these pre-tariff strategies have run their course, we're about to see some changes in prices, and then we're going to learn how consumers are going to respond to that," said Bostic. Another Fed interest rate cut is now not fully priced into futures markets until October. This latest bout of inflation anxiety comes at a nervy moment in bond markets, with Japan's ultra-long government bond yields spiking sharply this week after a poor debt auction there. The U.S. Treasury is now due to sell some $16 billion of 20-year bonds later on Wednesday on the heels of Moody's decision last Friday to remove the last U.S. AAA credit rating. Both 20 and 30-year Treasury yields , are back above 5% and stalking their highest levels since 2023. With long-term bond markets on edge, the bumpy passage of President Donald Trump's fiscal plan doesn't help. Trump's tax cut and spending bill faces a critical stress test on Wednesday as Republicans in the House of Representatives try to overcome internal divisions about cuts to the Medicaid health program and tax breaks in high-cost coastal states. The gate-keeping House Rules Committee scheduled an unusual overnight hearing expected to run well into daylight hours. The bill would extend the 2017 tax cuts that were Trump's signature first-term legislative achievement, and also add tax breaks on income from tips and overtime pay that were part of his election campaign trail. Nonpartisan analysts say it could add $3 trillion-$5 trillion to the federal government's $36.2 trillion debt pile. If it clears the committee, House Speaker Mike Johnson could push for a vote on the House floor as soon as Wednesday - with Republicans holding a narrow 220-213 seat majority. U.S. stock futures were down again ahead of today's open, after the S&P 500 closed 0.4% in the red on Tuesday. The dollar (.DXY) , opens new tab fell again too, with traders keeping one eye on the G7 finance chiefs meeting in Canada this week for any signs of U.S. pressure for a weaker dollar as part of its bilateral trade negotiations. Britain's pound was the big gainer - hitting its highest since February 2022 against the dollar after the hot UK inflation report. In today's column , opens new tab, I discuss the recent turbulence in Japan's bond market and how it signals a potential change in appetite from Japanese investors that could have significant implications for U.S. government debt. Chart of the day President Donald Trump's approval rating ticked lower this week to just 42% - matching the lowest level of his new term as Americans overall took a dim view of his handling of the economy. While low by historical standards, Trump's popularity remains higher than it was for much of his first term as president and also higher than his Democrat predecessor Joe Biden enjoyed in the second half of his 2021-2025 presidency. The partisan split among those polled also remains extreme. But on his economic policy performance overall, the Reuters/IPSOS poll shows more than 50% disapprove - 12% of those identifying as Republican voters and 94% those voting Democrat gave the thumbs down. Of those with no voting preference, almost 60% disapproved of the economic record so far. One-in-five Republicans disapproved on the cost of living record. Today's events to watch * Canada April house prices (0830EDT) * U.S. Treasury sells $16 billion of 20-year bonds * G7 finance ministers and central bankers meet in Banff in Alberta, Canada * Richmond Federal Reserve President Thomas Barkin speaks; European Central Bank Vice President Luis de Guindos and ECB chief economist Philip Lane speak * U.S. corporate earnings: Target, Lowe's, TJX, Medtronic, Progressive Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles , opens new tab, is committed to integrity, independence, and freedom from bias. https://www.reuters.com/business/finance/global-markets-view-usa-2025-05-21/
