2026-01-14 23:40
Jan 14 (Reuters) - Connecting to the U.S. electrical transmission system has become the biggest problem for powering up Google data centers on the grid, as the wait times to connect surge to more than a decade in some parts of the country, an energy executive with Google said on Wednesday. The world's largest technology companies are running up against the realities of the country's slow-moving power system as they race to access vast amounts of electricity for the expansion of energy-intensive data centers, which are increasingly being used to train and roll out artificial intelligence. Sign up here. "Transmission barriers are the number one challenge we're seeing on the grid," Marsden Hanna, Global Head of Sustainability and Climate Policy at Google (GOOGL.O) , opens new tab, said at an event held by the American Enterprise Institute. "We had one utility who told us 12 years to study the interconnection timeline, which is sort of wild, but that's what we're seeing," Hanna said. In order to address the wait times, Hanna said the country needs to address permitting delays for new transmission, and utilities should deploy technologies that can increase power flows from the existing system, along with other actions. Google is looking into arrangements, known as co-location, that might help the company circumvent some of the wait times by locating some data centers directly next to power plants. Colocated arrangements can involve bypassing the transmission system altogether and the long wait times associated with connecting to it. "That's the strategy we're pursuing with colocation and our hope is that these can eventually be grid-connected resources," Hanna said. Generally, Hanna said, Google's preference is to connect to the grid. Colocation is a complex and controversial topic, which has raised concerns about who pays for costs associated with the arrangements and what it means when power from an existing power plant is diverted for a single customer. The issue of co-location is being taken up by federal and regional regulators, who are seeking to set guidelines around the costs and reliability questions raised by the prospect of building data centers next to existing power plants. https://www.reuters.com/business/google-says-us-transmission-system-is-biggest-challenge-connecting-data-centers-2026-01-14/
2026-01-14 23:39
Tech and financial stocks among biggest sector decliners Bank stocks fall after Wells Fargo, Citi, BofA results Staples, energy sectors gain Indexes: Dow down 0.1%, S&P 500 down 0.5%, Nasdaq down 1% NEW YORK, Jan 14 (Reuters) - U.S. stocks finished lower on Wednesday, led by a drop in the Nasdaq, with technology shares declining as investors moved into more defensive areas, while bank stocks extended recent losses following some mixed quarterly results. The S&P 500 bank index (.SPXBK) , opens new tab dropped, with shares of Wells Fargo (WFC.N) , opens new tab down 4.6% after the company missed fourth-quarter profit expectations. Sign up here. Citigroup (C.N) , opens new tab and Bank of America (BAC.N) , opens new tab shares also fell, even after the companies beat Wall Street estimates for fourth-quarter profit. Financials including the banks, which were up sharply in 2025, have fallen this week amid concerns over U.S. President Donald Trump's proposed cap on credit-card interest rates, which JPMorgan (JPM.N) , opens new tab executives warned could squeeze consumers and hurt financial sector profits. "After a nice run, and so-so or mediocre earnings, you're seeing profit-taking and consolidation" in the banks, said Michael O’Rourke, chief market strategist at JonesTrading in Stamford, Connecticut. "Generally speaking, people are still optimistic on the group." In addition, he said, the credit-card cap plan may never go forward, but "none of the bank executives could rule it out." In tech, he said, investors are looking to rotate out of expensive megacaps and into value and more defensive names. S&P 500 financials (.SPSY) , opens new tab fell along with the S&P 500 technology sector (.SPLRCT) , opens new tab while more defensive groups including consumer staples (.SPLRCS) , opens new tab rose. The small-cap Russell 2000 index (.RUT) , opens new tab, which has been sharply outperforming the benchmark S&P 500 so far this year, hit a record closing high, along with the S&P 500 industrials index (.SPLRCI) , opens new tab. The Dow Jones Industrial Average (.DJI) , opens new tab fell 42.36 points, or 0.09%, to 49,149.63, the S&P 500 (.SPX) , opens new tab lost 37.14 points, or 0.53%, to 6,926.60 and the Nasdaq Composite (.IXIC) , opens new tab lost 238.12 points, or 1.00%, to 23,471.75. Shares of Broadcom (AVGO.O) , opens new tab and Fortinet (FTNT.O) , opens new tab dropped after Reuters reported, citing three people briefed on the matter, that Chinese authorities have told domestic companies to stop using cybersecurity software made by more than a dozen firms from the U.S. and Israel. On the flip side, energy shares rose, with oil prices settling higher amid worries about Iranian supply disruptions. Oil eased later in the day. Investors also digested data earlier on Wednesday showing producer prices in the U.S. matched forecasts in November but that retail sales topped expectations. A report on Tuesday showed December consumer prices rose as projected. Interest rates are widely expected to hold steady through the first half of the year, including at the Federal Reserve's January meeting, with traders pricing in at least two cuts before year-end, according to LSEG data. Volume on U.S. exchanges was 22.54 billion shares, compared with the 16.69 billion average for the full session over the last 20 trading days. Advancing issues outnumbered decliners by a 1.85-to-1 ratio on the NYSE. There were 518 new highs and 69 new lows on the NYSE. On the Nasdaq, 2,739 stocks rose and 2,034 fell as advancing issues outnumbered decliners by a 1.35-to-1 ratio. https://www.reuters.com/business/wall-street-futures-decline-ahead-big-bank-earnings-2026-01-14/
2026-01-14 23:31
Trump says crackdowns on protesters in Iran easing Brent, WTI fall 4% EIA reports sharp rise in US crude and gasoline inventories HOUSTON, Jan 15 (Reuters) - Oil prices settled down around 4% on Thursday ending a five-day streak of gains after U.S. President Donald Trump said the crackdown on protesters in Iran was easing, allaying concerns over potential military action against Iran and oil supply disruptions. Brent futures settled down $2.76 or 4.15%, at $63.76 a barrel. U.S. West Texas Intermediate crude fell $2.83, or 4.56%, to $59.19. Sign up here. Both contracts had risen to multi-month highs over the last few sessions. Trump said he had been told that killings during Iran’s crackdown on protests were easing and he believed there was no current plan for large-scale executions, adopting a wait‑and‑see posture after earlier threatening intervention. RISK PREMIUM REDUCED The comments reduced the risk premium that had built up in recent days, analysts said. On Wednesday, Brent reached a high of $66.82, its highest since September. "We went from a high likelihood that Trump was going to hit Iran to a low likelihood, and that is the bulk of the downward pressure today on prices," said Phil Flynn, senior analyst with Price Futures Group. The U.s. is withdrawing some personnel from military bases in the Middle East, a U.S. official said on Wednesday, after a senior Iranian official said Tehran had told neighbours it would hit American bases if Washington strikes. Further weighing on prices, U.S. crude and gasoline inventories rose last week by more than analysts had estimated, the Energy Information Administration said on Wednesday. Elsewhere, Venezuela has begun reversing oil production cuts made under a U.S. embargo, with crude exports also resuming, three sources said. Analysts pointed to further bearish market sentiment following a positive phone call between Trump and Venezuela's acting President Delcy Rodriguez on Wednesday, with expectations of stability in the short term leading to more oil leaving Venezuela in the coming weeks. "That will keep prices anchored," Flynn said. On the demand side, OPEC said on Wednesday that 2027 oil demand was likely to rise at a similar pace to this year and published data indicating a near balance between supply and demand in 2026, contrasting with other forecasts of a glut. China's crude oil imports in December rose 17% from a year earlier, while total imports in 2025 were up 4.4%, government data showed, with daily crude import volumes hitting record highs. https://www.reuters.com/business/energy/us-oil-prices-dip-more-than-1-trump-remarks-reduce-fears-about-iran-2026-01-14/
2026-01-14 22:56
HOUSTON, Jan 14 (Reuters) - Venezuelan crude oil was being offered this week to U.S. Gulf Coast refiners at a premium to competing Canadian barrels, two traders said. Venezuelan Merey-16 oil was offered for U.S. Gulf Coast delivery at a discount of around $6 to Brent crude futures earlier this week, a trader said, while West Canadian Select at Houston settled at a roughly $12.50 discount to Brent on Tuesday. Sign up here. Global commodities traders Vitol and Trafigura last week struck agreements with the U.S. government to help market stranded Venezuelan oil, days after the interim government in Caracas agreed to export up to 50 million barrels of crude oil to the U.S. A full-scale resumption of Venezuelan oil exports could benefit refiners in the United States, while a boost in Venezuelan exports to the U.S. Gulf Coast could hurt Canadian companies that sell a similar heavy oil. Canada's crude tends to produce more naphtha - a lighter hydrocarbon produced after the oil is refined. With abundant availability of naphtha in the market, refiners may prefer the economics of running Venezuelan crude, two sources said. https://www.reuters.com/business/energy/venezuelan-oil-priced-premium-competing-canadian-barrels-us-gulf-coast-refiners-2026-01-14/
2026-01-14 22:19
Jan 14 (Reuters) - British oilfield services provider Petrofac said on Wednesday its creditors will meet later this month to vote on a proposal requiring them to compromise some of their claims in order to allow the sale of the company's asset solutions business. Petrofac in December agreed to sell the business to Texas-based CB&I to repay secured creditors, months after the loss of a major contract forced its holding company into administration. Sign up here. The sale of the business, which provides operations, maintenance and decommissioning services for energy assets, is expected to generate proceeds of $45 million to $55 million. Creditors will meet on January 30 to vote on a so-called company voluntary arrangement that is intended to compromise certain creditor claims to enable the completion of the sale, Petrofac said, without giving further details on the claims. Petrofac and CB&I, which builds storage facilities, tanks and terminals for energy projects, did not immediately respond to Reuters' requests for details on the claims. Trade creditors, employees and other parties are not affected by the proposal and operations of the asset solutions business will continue as normal during the process, Petrofac said. Petrofac, which employs 8,500 workers globally, in October applied for administration of its ultimate holding company after losing a major contract with Dutch firm TenneT. The company's stock was delisted from the London Stock Exchange in October. https://www.reuters.com/business/energy/uks-petrofac-seeks-creditors-compromise-claims-allow-asset-sale-2026-01-14/
2026-01-14 22:19
Jan 14 (Reuters) - U.S.-based utility Duke Energy's (DUK.N) , opens new tab Florida unit said on Wednesday that the storm cost recovery charge would be removed from customer bills a month earlier than originally scheduled. The costs are associated with the company's nearly $1.1 billion response to hurricanes Debby, Helene and Milton, for which it had filed a plan with the Florida Public Service Commission (FPSC) in late 2024. Sign up here. Residential customers will see about a $33 reduction in their monthly bills starting in February, with roughly $11 more cut in March, bringing total reductions to around $44 from January levels, the utility said in a statement. Commercial and industrial customers will also see their monthly bills lowered between 9.6% and 15.8% starting February from January levels, though the exact impact will vary based on usage and other factors. Duke's electric utilities serve about 8.4 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky and collectively own 54,800 megawatts of energy capacity. Its natural gas utilities serve 1.7 million customers in North Carolina, South Carolina, Tennessee, Ohio and Kentucky. https://www.reuters.com/business/energy/duke-energy-unit-drop-storm-recovery-charge-customer-bills-month-early-2026-01-14/
