2025-05-05 21:54
NEW YORK, May 5 (Reuters) - The U.S. Commodity Futures Trading Commission on Monday moved to drop its appeal of a court decision that allowed New York derivatives trading platform KalshiEX LLC to list contracts Americans can use to bet on election outcomes. The CFTC asked to allow it to voluntarily dismiss the case, agreeing that each party to the lawsuit will bear its own costs and fees, according to a filing in the U.S. Court of Appeals for the D.C. Circuit on Monday. Sign up here. A representative for CFTC said the agency filed the motion for voluntary dismissal following a vote of the Commission. A source with knowledge of the matter said the CFTC voted 3-0 in favor of dropping the appeal, with one of the agency's four commissioners abstaining from voting. WHY IT MATTERS The CFTC is walking away from the appeal at a time of flux in regulations over such prediction markets, which critics say are introducing risk into financial markets. KEY QUOTE "Today is historic. We have always believed that doing things the right way, no matter how hard, no matter how painful, pays off. This result is proof of that," said Tarek Mansour, CEO and co-founder at Kalshi, in a statement to Reuters. "Kalshi's approach has officially and definitively secured the future of prediction markets in America." CONTEXT Kalshi sought permission from the CFTC in June 2023 to list contracts that would let Americans bet on whether a particular party will control the House of Representatives and Senate in a given term. The CFTC prohibited Kalshi from listing and clearing its cash-settled political event contracts concerned about unlawful gaming and other activities that it said were not in the public's interest. Kalshi then sued, saying the CFTC exceeded its authority. A judge in the D.C. District Court sided with Kalshi in September. The CFTC immediately appealed, requesting an emergency stay on the lower court's order. The DC circuit ruled in October that Kalshi could list its event contracts, stating that the CFTC did not show how the agency or the public interest would be harmed by them as it claimed. The DC circuit later heard related arguments in January, shortly before Trump took office, but had not yet ruled. https://www.reuters.com/markets/commodities/cftc-moves-drop-appeal-kalshis-event-contracts-case-2025-05-05/
2025-05-05 21:53
TVA's coal plants produce power equal to needs of 4 mln homes TVA said in 2021 their life cycles end in 2035 TVA says now that it has power generation needs into 2050 WASHINGTON, May 5 (Reuters) - Environmental groups on Monday slammed comments by the head of the U.S.-owned Tennessee Valley Authority suggesting the utility's four coal-fired power plants could continue to operate after a planned shutdown in 2035. TVA's CEO Don Moul said last week that the utility was evaluating executive orders signed by President Donald Trump last month that seek to save coal plants likely to be shut, cut regulations on coal plants, and reduce barriers to coal mining. Sign up here. "We are re-evaluating the end-of-life study that we did on our coal fleet and we're taking a hard look at our asset strategy with respect to what the regulatory environment is in front of us," Moul said last week after a quarterly financial call. Moul said two of the plants, Shawnee, in Kentucky, and Gallatin in Tennessee, have a "strong potential to continue to operate for the foreseeable future as long as we have the regulatory allowance." He said the two other plants, Kingston and Cumberland, both in Tennessee, are more limited by regulations but there are more decisions to make in the future. The four TVA plants have a capacity of 7,000 megawatts, enough to power more than 4 million homes. In 2021, TVA said it planned to shut the plants by 2035, as they would have reached the end of their life cycle by then. The year 2035 was also the time that then-President Joe Biden wanted the power grid to be decarbonized to fight climate change. Utilities are scrambling to secure power generation as U.S. electricity demand is growing for the first time in decades on growth in data centers for artificial intelligence. Scott Brooks, a TVA spokesperson, said on Monday that the utility's outlook includes additional power generation needs into 2050. "We’re exploring all options to meet those needs." Bonnie Swinford, an organizer at the Sierra Club, said her organization will fight any extension. "These expensive, unreliable coal plants are not serving Tennesseans any more than a screen door on a submarine," Swinford said. "We deserve clean, affordable energy that paves the way for a healthier future for our community." Howard Crystal, the legal director for the energy justice program at the Center for Biological Diversity, said he hoped any extension of the plants would not be a precedent. "It sends absolutely the wrong message ... to the world about our nation's commitment to addressing climate change and cleaning up polluting forms of energy." https://www.reuters.com/sustainability/boards-policy-regulation/us-tva-chief-suggests-coal-plants-could-see-longer-life-environmental-groups-vow-2025-05-05/
2025-05-05 21:53
May 5 (Reuters) - U.S. shale producer Coterra Energy (CTRA.N) , opens new tab reported a rise in first-quarter profit on Monday but said it would lower its annual capital expenditure budget due to macroeconomic uncertainty. The U.S. energy sector is bracing for the potential fallout from President Donald Trump's sweeping tariffs and an intense trade war with China — factors that could reduce demand for oil and natural gas. Sign up here. Earlier today, Diamondback Energy (FANG.O) , opens new tab also trimmed its annual capital budget and production forecasts amid macroeconomic uncertainty affecting global energy demand. "As our industry faces macroeconomic uncertainty and oil price headwinds, we believe it is prudent to reduce oil-directed activity at this time," said Coterra Chief Executive Officer Tom Jorden. The firm adjusted its 2025 capital expenditure budget to a range of $2.0 billion to $2.3 billion, down from its previous forecast of $2.1 billion to $2.4 billion. It also plans to operate seven rigs in the Permian Basin during the second half of the year, compared to an earlier plan to run ten rigs. This decision is intended to bolster free cash flow and maintain the company's oil production forecast, Coterra said. Shares of the company were down 1.5% after the bell. Coterra's first-quarter results were driven by higher production in the Permian and Anadarko basins, though these gains were partially offset by weaker oil prices. Total production rose to 746,800 barrels of oil equivalent per day (boepd) from 686,100 boepd in the first quarter ended March 31. Oil production averaged 141,200 barrels per day in the quarter, while average realized oil price — the price received for each barrel of oil produced — was $69.73, 7% lower than last year. The Houston, Texas-based company said its net income rose to $516 million, or 68 cents per share, during the first quarter, compared with $352 million, or 47 cents per share, a year ago. https://www.reuters.com/business/energy/shale-producer-coterra-energy-reports-higher-quarterly-profit-cuts-spending-2025-05-05/
2025-05-05 21:24
HOUSTON, May 5 (Reuters) - Oil prices below $50 a barrel could hurt final investment decisions on offshore projects, oilfield services company Weatherford International's (WFRD.O) , opens new tab CEO Girish Saligram said on Monday. Plans by the producer group OPEC+ to raise output and U.S. President Donald Trump's tariff policies have pushed U.S. crude oil prices down to over four-year lows to around $57, worrying investors of production shut-ins. Sign up here. Offshore production has remained a rare bright spot as investments are longer cycle, unlike shale. "If we see prices sustain below $50 a barrel, I think it could create a little bit of a lull for some of the new final investment decisions," Saligram said on the sidelines of the Offshore Technology Conference in Houston. Projects that are already underway are unlikely to be impacted as companies have thought through different commodity price scenarios, Saligram added. https://www.reuters.com/business/energy/weatherford-ceo-says-oil-below-50bbl-could-hurt-offshore-investments-2025-05-05/
2025-05-05 21:23
Buffett's decision to give up CEO job 'a shocker' Buffett could serve as mentor, help in acquisitions Stock price falls 5% though Abel's ascension was expected May 5 (Reuters) - Warren Buffett will stay on as chairman of Berkshire Hathaway (BRKa.N) , opens new tab after Vice Chairman Greg Abel takes over as chief executive officer, the conglomerate said on Monday. Berkshire made the announcement two days after the 94-year-old Buffett revealed at the company's annual meeting in Omaha, Nebraska that he would step down as CEO, ending six decades at the helm for the legendary investor. Sign up here. Shares of Berkshire closed down about 5%, lowering the company's market value by $59 billion to $1.11 trillion. Though Abel's expected ascension had been known for four years, Buffett's announcement was a surprise. The change overshadowed Berkshire's first-quarter results, where insurance losses tied to wildfires caused operating profit to fall short of analyst forecasts. "Buffett's retirement announcement was a shocker," Morningstar analyst Greggory Warren wrote. Warren Buffett took control of Berkshire, once a floundering textile mill, on May 10, 1965, after a dispute with prior management. He transformed Berkshire into one of the world's largest and most admired companies, with 189 businesses including Geico insurance, the BNSF railroad, Dairy Queen and See's Candies, and a huge stock portfolio including Apple (AAPL.O) , opens new tab. Berkshire's stock price has reflected Buffett's success, posting annualized returns that nearly doubled the Standard & Poor's 500 (.SPX) , opens new tab index. Berkshire's board of directors approved Abel's promotion, which will take effect on January 1, 2026, at a meeting on Sunday. Abel and most of the board had not known of Buffett's announcement in advance. Buffett said he had given a heads up to his children Howard and Susie, who are directors. It had been unclear before Monday whether Warren Buffett would remain chairman or hand that title to Howard Buffett. "His sticking around provides reassurance to shareholders," said Kyle Sanders, an analyst at Edward Jones & Co. "Abel will be making large and important decisions, but having Warren around is a nice resource and he can serve as a mentor." Staying around means Buffett could play a role if Berkshire made another major acquisition, which has eluded him for nearly a decade. Berkshire ended March with $347.7 billion of cash. "It would give shareholders confidence that yes, we're still Berkshire and we'll still do large deals," Sanders said. "It gives shareholders confidence the company is not going to change even as the leadership does." BUFFETT NOT SELLING Buffett's investing success, annual letters to Berkshire shareholders, common sense and modesty made him a household name and American icon, earning him the title "Oracle of Omaha." His admirers include billionaire Bill Ackman, who has said he wants to turn the Howard Hughes (HHH.N) , opens new tab real estate company in which he invests into a "modern-day Berkshire Hathaway." Berkshire's annual meetings have drawn an estimated 40,000 people to Omaha, including thousands from China and other countries, to see Buffett and former Vice Chairman Charlie Munger, go shopping and meet like-minded investors. Munger died in 2023. Howard Buffett, 70, is expected to eventually become non-executive chairman, primarily to preserve Berkshire's culture. Abel, 62, who was raised in Edmonton, Alberta, and has a love for hockey, had waited four years since Berkshire publicly revealed he was Buffett's designated successor. Berkshire's non-insurance businesses have reported to him since he became a vice chairman in 2018, and in the last year he took over some of Buffett's capital allocation responsibilities. Insurance units such as Geico, General Re and National Indemnity will continue to report to Vice Chairman Ajit Jain. Morningstar's Warren said Abel will have a "challenging time" as CEO focusing on both day-to-day operations and capital allocation, though he was the right pick for the job. Buffett assured at the meeting that he would not sell any of his Berkshire stock, which comprises most of his fortune. Nearly all of it will be donated , opens new tab by his three children, including his youngest son Peter, after his death, and they must decide unanimously on each commitment. “I have no intention, zero, of selling one share of Berkshire Hathaway," Buffett said, prompting a two-minute standing ovation. "The decision to keep every share is an economic decision," he added, "because I think the prospects of Berkshire will be better under Greg’s management than mine." https://www.reuters.com/markets/us/berkshire-hathaway-shares-fall-buffett-step-down-ceo-year-end-2025-05-05/
2025-05-05 21:13
Travelers face long flight delays and cancellations United cuts Newark flights to 293 a day from 440 Transportation secretary to present a plan for updating technology WASHINGTON, May 5 (Reuters) - Senate Democratic Leader Chuck Schumer on Monday called for a probe into ongoing flight disruptions at Newark airport that began eight days ago due to outdated equipment and a shortage of air traffic controllers. "The FAA is really a mess," Schumer said. "We have a 1990 technology being used in 2025." Sign up here. Travelers at the New Jersey airport near Manhattan have faced flight delays of up to five hours and cancellations. That has rippled throughout the country as Newark Liberty International Airport is the 12th busiest U.S. airport based on passenger boarding data. Schumer asked the Transportation Department's Office of Inspector General to investigate "what happened at Newark so these problems don't get worse, or spread to airports across the nation." The National Air Traffic Controllers Association said that air traffic controllers responsible for coordinating planes in Newark temporarily lost radar contact and communications with the aircraft under their control on April 28. United Airlines (UAL.O) , opens new tab CEO Scott Kirby on Friday said 20% of the FAA controllers for Newark had walked off the job. But on Monday, the controllers' union said they did not walk off the job but took absences under the Federal Employees Compensation Act, which provides for absences for injuries or on-the-job trauma. The FAA said Monday some controllers in Philadelphia who work Newark arrivals and departures "have taken time off to recover from the stress of multiple recent outages." Newark airport has also been undergoing runway construction this spring that has cut capacity, and the FAA has faced a persistent nationwide shortage of controllers. United said on Monday it was cancelling 35 more flights a day - or about 10% - at its Newark hub. United has been forced to divert dozens of flights to other airports while flight delays of five or more hours have occurred. United said it has historically flown 440 flights daily out of Newark but after cutting flights earlier this spring and the latest cuts, it is now down to 293. The FAA last year relocated control of the Newark airspace to Philadelphia to address staffing and congestion. U.S. Transportation Secretary Sean Duffy, who intends to propose a plan this week to fix outdated air traffic control infrastructure, visited the FAA Terminal Radar Approach Control at Philadelphia on Friday. "The technology that we are using is old. That’s what is causing the outages and delays we are seeing at Newark," Duffy said. The FAA is about 3,500 controllers short of targeted staffing. A persistent shortage of controllers has delayed flights and, at many facilities, controllers are working mandatory overtime and six-day weeks. https://www.reuters.com/sustainability/sustainable-finance-reporting/top-senate-democrat-seeks-probe-into-newark-flight-woes-2025-05-05/
