2025-04-11 22:28

April 11 (Reuters) - Southern California Edison (SCE), a subsidiary of utility Edison International (EIX.N) , opens new tab, said on Friday it had submitted an initial plan to rebuild the areas within its service territory that were devastated by the Los Angeles wildfires in January. The preliminary plan was submitted to California Governor Gavin Newsom and is estimated to cost between $860 million and $925 million, SCE said, adding that securing alternate funding sources was critical to making the plan a reality. Sign up here. The wildfires tore across LA starting on January 7, leading to dozens of deaths and destroying thousands of homes. It is estimated to be the most expensive natural disaster in U.S. history. Although no official cause for the fires has been released, several lawsuits have claimed that SCE power lines and towers in Altadena started one of the blazes - the Eaton Fire. SCE has also been sued by the LA County and the City of Pasadena. The company said on Friday the investigation was ongoing and it "remains committed to transparency with the public". It also said that its preliminary plan would primarily focus on undergrounding power lines in the Altadena and Malibu areas located in the Los Angeles county. https://www.reuters.com/sustainability/boards-policy-regulation/southern-california-edison-lays-out-925-million-plan-rebuild-after-la-wildfires-2025-04-11/

2025-04-11 22:20

Euro gains against dollar as investors shift from U.S. assets Euro hits three-year high, biggest one-day jump in nine years European investors leaving U.S. assets can fuel more gains April 11 (Reuters) - The euro has emerged as a surprise winner of the recent tariff-induced market turmoil, confounding the earlier consensus by surging to a three-year high against the dollar as Europe proves a relatively safe bet amid the global chaos. Driving the currency's move is global investors' growing nervousness about owning U.S. assets, causing them to sell and move money back home. In Europe, the flows are boosting the euro. Sign up here. "Money flows have become vastly bigger than trading flows," said Kit Juckes, chief FX strategist at Societe Generale. "If the U.S. government causes equities to fall and reduces the profitability of U.S. companies, we should ask ourselves whether the rest of the world still wants to put all of its money in American bonds or equities." The euro has gained more than 5% on the dollar since April 1, the day before U.S President Donald Trump introduced new 10% baseline tariffs on all economies and slapped duties totalling 20% on the European Union. Trump's decision to pause the higher levies for 90 days on Thursday fuelled the biggest single-day jump in the euro since 2015. By Friday it had hit a three-year high above $1.14, building on the rally that had started weeks earlier after Germany announced a massive spending plan. While policymakers in the region are talking up their currency as a global player, becoming a currency of choice could hurt European exporters which have benefited from a cheaper euro during global economic slowdowns, analysts warn. Its strength has been broad, hitting a 17-month high versus Britain's pound and trading around 11-year highs on China's yuan, which has taken it to a record on a trade-weighted basis . , Safe havens like the Japanese yen and Swiss franc have also strengthened. But unlike those currencies, the euro normally weakens against the dollar in times of stress. What's more, at the start of the year the euro was trading around $1.03, and analysts then expected it to fall below $1if tariffs were imposed. These bets are now being dramatically reassessed. REPATRIATION There is plenty to sell. Foreign holdings of U.S. assets had surged to $62 trillion in 2024 from $13 trillion a decade earlier as international investors flocked to outperforming American stocks, bonds and real estate. The euro area accounts for the biggest share of foreign ownership of U.S. assets when broken down by currency, according to data from Adam Pickett, Citi's head of global macro strategy. "I think this story can run as long as the reallocation runs," he said, drawing comparison with late 2022, when European stocks outperformed the S&P 500 for around six months and the euro gained around 10%. "Then there are lots of pie-in-the-sky type discussions around whether the isolationism and lack of trust in U.S. institutions means, longer-term, people are less confident in holding on to U.S. assets. That's a much more difficult story to map out." There are indeed many moving parts in very volatile markets and not everyone agrees on how things will develop. "A shift out of U.S. assets in a secular long-term sense is not something that can be engineered in a week," said Lefteris Farmakis, senior FX strategist at Barclays. Instead traders were re-evaluating their earlier view that the euro would be among the harder-hit currencies from tariffs, he said, and this accounted for the strength of the rally. SAFE EUROPE The relative moves in Treasuries and German government bonds also suggest some nervousness about U.S. debt, and the gap between German and U.S. 10-year yields has widened nearly 50 basis points this week. European Central Bank policymaker Francois Villeroy de Galhau said on Thursday that Trump's policies have eroded confidence in the dollar. "Thank God that Europe 25 years ago created the euro," he said. And its appreciation could keep going. "The euro rallying $1.25 is a very clear possibility," said Vasileios Gkionakis, senior economist at Aviva Investors, pointing to both safe haven flows and German spending. This has various ramifications for Europe. George Sarevalos, head of FX strategy at Deutsche Bank, said demand for euro-denominated debt could make it easier for European governments to spend, and the higher euro makes it easier for the European Central Bank to keep rates lower even if tariffs cause inflation to rise. But it would have negative consequences for exporters. "Normally, when the global business cycle is weak the euro weakens, which creates a relief valve and alleviates the negative impact on the European economy," said Mathieu Savary, chief European strategist at BCA Research. "Right now this isn't happening, and this could create an additional risk for European stocks." https://www.reuters.com/markets/currencies/near-1-tariff-war-winner-euro-confounds-its-naysayers-2025-04-11/

2025-04-11 21:09

WASHINGTON, April 11 (Reuters) - U.S. and Ukrainian officials met on Friday on a U.S. proposal to gain access to Ukraine's mineral wealth, a source with knowledge of the matter said, adding that prospects for a breakthrough were scant given the meeting's "antagonistic" atmosphere. The strains in the Washington talks stemmed from the Trump administration's latest draft proposal, which is more expansive than the original version, the source said. Sign up here. "The negotiating environment is very antagonistic," the source said, pointing to the "maximalist" draft submitted by the Trump administration last month. A Treasury Department spokesperson confirmed the discussions, calling them "technical in nature." The latest draft would give the U.S. privileged access to Ukraine's mineral deposits and require Kyiv to place in a joint investment fund all income from the exploitation of natural resources by Ukrainian state and private firms. The proposed deal, however, would not provide U.S. security guarantees to Kyiv - a top priority of Ukrainian President Volodymyr Zelenskiy - for its fight against Russian forces occupying some 20% of its territory. The source said that one of the "Easter eggs" found in the document was a U.S. demand that the U.S. government's International Development Finance Corporation take control of a natural gas pipeline from Russian energy giant Gazprom across Ukraine to Europe. The Ukrainian government has hired law firm Hogan Lovells as an outside adviser on the minerals deal, the source said. Zelenskiy on Wednesday said a minerals deal should be profitable for both countries and could be structured in a way that would help modernize Ukraine. Top Ukrainian officials including Prime Minister Denys Shmyhal and Finance Minister Serhiy Marchenko will be in Washington in two weeks for International Monetary Fund and World Bank meetings, including a Ukraine-focused ministers' meeting on April 25, multiple sources familiar with the plans said. U.S. President Donald Trump is seeking a deal covering Ukraine's minerals, which include prized rare earths, as part of his effort to end the war and as a way to recover billions of dollars in U.S. military assistance to Kyiv. https://www.reuters.com/world/us-ukraine-hold-tense-talks-mineral-deal-remains-elusive-source-says-2025-04-11/

2025-04-11 21:03

Dollar weakness, spiking Treasury yields rattle investors Earnings in coming week include Goldman, J&J, Netflix Retail sales on deck, tariff news remains in focus NEW YORK, April 11 (Reuters) - Wild swings in global markets are poised to keep U.S. stock investors on edge in the coming week, as a weakening dollar and a selloff in Treasuries compound extreme equity volatility that erupted after President Donald Trump launched his sweeping tariffs. The S&P 500 (.SPX) , opens new tab was set for solid gains on the week after Trump pulled back on the heftiest tariffs on many countries, relieving Wall Street's worst-case scenario. Still, the benchmark index still was down about 13% from its February 19 all-time closing high. Concerns about lasting economic damage remained as the U.S. and China ratcheted up their trade battle and questions lingered over levies elsewhere as Trump only paused many of the most severe tariffs. Sign up here. Investors punished U.S. assets in the wake of Trump's tariffs, with the dollar plunging against other major currencies and benchmark U.S. Treasury yields, which move opposite to bond prices, surging. The stock market is "very unsettled" as investors weigh how to price in any economic fallout from the changing tariff backdrop, said Mark Luschini, chief investment strategist at Janney Montgomery Scott. The market is "kind of trapped by the level of uncertainty that lurks out there," Luschini said. "And therefore investors are largely unwilling to make big bets in one direction or another." A volatile week in stocks was highlighted by Wednesday's 9.5% jump for the S&P 500, the index's biggest one-day rise since October 2008 during the heart of the financial crisis. The Cboe Volatility index (.VIX) , opens new tab, an options-based measure of investor anxiety, stood at around 40, more than twice its historic median level. Stock investors were warily watching moves across asset classes, in particular the dollar and Treasuries. An index that measures the dollar against a basket of currencies on Friday fell below 100 for the first time in nearly two years, while the yield on the benchmark 10-year Treasury was on pace for its biggest weekly jump in decades. In many prior risk-off events, the dollar and Treasuries have acted as safe havens, but that has not been the case over the last week as stocks have tumbled, said Walter Todd, chief investment officer at Greenwood Capital in South Carolina. “We are the reserve currency and the risk free asset of the world, and our markets are not acting as such," Todd said. The yield on the 10-year Treasury on Friday topped 4.5%, which investors have cited as a level that could cause turbulence for stocks. Higher yields translate into higher borrowing costs for consumers and businesses, while potentially making bonds more competitive investments against stocks. "Until Treasuries stabilize and start to behave normally, risk assets will struggle," Barclays analysts said in a note on Friday. Quarterly U.S. corporate results in the coming week provide another test for investors. Goldman Sachs (GS.N) , opens new tab, Johnson & Johnson (JNJ.N) , opens new tab and Netflix (NFLX.O) , opens new tab are among the major U.S. companies set to report. Bryant VanCronkhite, senior portfolio manager at Allspring Global Investments, said he would be looking for companies which can show confidence in their businesses despite the shifting tariff landscape. "I'm looking for companies that have the competence and the desire to invest through this cycle," VanCronkhite said. Data on U.S. retail sales for March will shed light on the health of the consumer, but investors may discount the report to some extent because it covers a period before Trump's April 2 tariff announcement. A survey on Friday showed U.S. consumer sentiment fell sharply in April and 12-month inflation expectations surged to the highest level since 1981 amid unease over escalating trade tensions. Markets will remain highly sensitive to developments on the trade front. Investors will hope for evidence of progress between the U.S. and countries for which Trump has paused hefty levies for 90 days. The faceoff between the U.S. and China -- the world's two largest economies -- will also consume attention. Beijing increased its tariffs on U.S. imports to 125% on Friday after Trump's move to hike duties on Chinese goods. "China negotiations remain key for markets," Citi strategists said in a note. https://www.reuters.com/business/wall-st-week-ahead-broadening-asset-volatility-intensifies-worries-tariff-tossed-2025-04-11/

2025-04-11 20:58

NEW YORK, April 11 (Reuters) - U.S. energy regulators this week denied a request to reconsider a decision that blocked an Amazon (AMZN.O) , opens new tab data center, connected directly to a Talen Energy (TLN.O) , opens new tab nuclear power plant in Pennsylvania, from ramping up its power use, government filings show. Big Tech's race to secure massive amounts of electricity to fuel its AI data centers has led to unprecedented arrangements with power companies, including new types of so-called co-located deals, where the giant computer warehouses are powered right from the power source. Sign up here. The arrangements have promised to speed up the technology industry's artificial intelligence expansion by eliminating wait times to connect to the broader grid and have propelled company shares of independent power companies like Talen on the prospect of signing multiple co-located power deals. Members of the Federal Energy Regulatory Commission have voiced concern about how the Amazon data center, which diverts electricity from the broader grid, might affect power reliability and costs for the general public. In November, FERC rejected Talen's request to increase power supplied to the Amazon data center beyond 300 megawatts. When Talen Energy sold the data center to Amazon, the company said the facility could use almost 1,000 megawatts of energy supplied directly from Talen's Susquehanna nuclear facility. FERC, on Thursday, denied a request for a rehearing on the matter. Talen, which has separately asked a U.S. appeals court to weigh FERC's rejection, said it wasn't surprised by the decision. "The ruling now allows us to pursue our appeal rights on the merits in the Fifth Circuit," Talen spokesperson Taryne Williams said on Friday. FERC is still considering establishing broader rules governing co-location as it becomes and increasingly popular choice for data center developers. https://www.reuters.com/technology/us-regulators-deny-rehearing-co-located-amazon-data-center-energy-pact-2025-04-11/

2025-04-11 20:56

PDVSA cancels authorizations for Chevron-chartered ships Chevron awaits paperwork for cargo return to Venezuelan ports HOUSTON, April 11 (Reuters) - At least two vessels carrying Venezuelan crude chartered by Chevron (CVX.N) , opens new tab are stalled due to state oil company PDVSA canceling their export authorizations, according to shipping data and sources, as the government had no certainty of payment amid the hardening of U.S. sanctions on the OPEC-member country. An individual license issued in 2022 by the United States for Chevron to operate in Venezuela was revoked in March by U.S. President Donald Trump's administration with a wind-down period granted until May 27. But PDVSA's orders are now cutting the deadline short. Sign up here. The U.S. oil producer awaits customs paperwork to return the cargoes to ports after PDVSA on Thursday canceled set-sail authorizations to two of the Chevron-chartered vessels that had finished loading. The Venezuelan company also suspended loading permits to four other Chevron tankers, which began to sail away empty on Friday, according to the sources and LSEG shipping data, adding uncertainty to the U.S. company's exports from Venezuela. The Venezuelan government blamed the U.S. measures for the issue, saying they prevented Chevron from paying for the oil. "Because of the economic war initiated by the U.S. government against oil companies, Chevron has returned cargoes of crude to PDVSA," Vice President Delcy Rodriguez posted on Telegram. "This crude is being sold on international markets. As of Friday, the Chevron-chartered vessels Dubai Attraction and Carina Voyager remained loaded in Venezuelan waters waiting for paperwork for the cargoes' return, according to the sources and shipping data. The cargoes had been declared as exports to Venezuela's customs authority, so Chevron must now obtain authorization for their return. PDVSA is requesting the cargoes be returned in coming days at ports including Amuay, the sources said. Carina Voyager was bound for Chevron's Pascagoula refinery in Mississippi, while Dubai Attraction was scheduled to transfer its cargo to the Valero Energy-chartered (VLO.N) , opens new tab tanker Cap Corpus Christi off Aruba, according to the data and sources. The Cap Corpus Christi departed partially loaded on Friday to the United States as it could not complete its load via ship-to-ship, the LSEG data showed. Four other Chevron vessels scheduled to load this month - the Pegasus Star, Ionic Anax, Calypso and Sea Jaguar - had their loading windows suspended. Two of them were sailing away from Venezuelan waters on Friday, according to the sources and data. Chevron, PDVSA and Valero did not reply to requests for comment. Venezuela's vice president did not say if the cargoes would be rescheduled by PDVSA. Chevron, whose joint ventures with PDVSA produce about a quarter of the country's oil output, exported some 250,000 barrels per day of Venezuelan crude to the United States in the first quarter under its license, granted in 2022. That license and others to European and Asian companies in Venezuela were canceled by the Trump administration last month as Washington accused President Nicolas Maduro of not doing enough to curb illegal migration to the U.S. and restore democracy in Venezuela. Maduro's government has long rejected the U.S. sanctions on the country's oil industry, in effect since 2019. https://www.reuters.com/business/energy/chevrons-venezuelan-oil-cargoes-stalled-sea-after-export-cancellations-2025-04-11/