2025-01-28 23:44
Royal Caribbean rises on higher-than-expected profit forecast S&P 500 tech sector registers biggest daily gain since July 31 Indexes: Dow up 0.3%; S&P 500 up 0.9%; Nasdaq up 2% NEW YORK, Jan 28 (Reuters) - U.S. stocks ended higher on Tuesday, with Nvidia (NVDA.O) , opens new tab and other artificial intelligence-linked technology shares recovering from sharp losses the previous day as investors snapped up bargains. The Nasdaq jumped 2% and AI chip leader Nvidia rose 8.9%, a day after its 17% drop erased about $593 billion from its market value in the biggest single-session loss for any company. The S&P 500 technology sector (.SPLRCT) , opens new tab rallied 3.6% in its biggest daily percentage gain since July 31, while an index of semiconductor shares (.SOX) , opens new tab gained 1.1%. Apple shares rose 3.7%. Investors were eager to hear from Apple (AAPL.O) , opens new tab, Microsoft (MSFT.O) , opens new tab and other companies when they report quarterly results later this week. The tech sell-off followed Chinese startup DeepSeek's launch of AI models it said were on a par or better than industry-leading U.S. rivals at a fraction of the cost. "We're getting the typical bounceback rally you'd expect when you have news that's not very specific and more of a potential for a future change," said Rick Meckler, partner, Cherry Lane Investments, a family investment office in New Vernon, New Jersey. "Some of the tech market, particularly around AI, was ready for a bit of a sell-off, and this news provided the excuse for it. Today you're seeing the bargain hunters come back in and also those who are discounting the news about DeepSeek since we don't really know very much about it." The Dow Jones Industrial Average (.DJI) , opens new tab rose 136.77 points, or 0.31%, to 44,850.35, the S&P 500 (.SPX) , opens new tab gained 55.42 points, or 0.92%, to 6,067.70 and the Nasdaq Composite (.IXIC) , opens new tab gained 391.75 points, or 2.03%, to 19,733.59. Nvidia's forward price-to-earnings ratio, a common valuation metric, had hit its cheapest since December 2023. Optimism over AI helped to drive sharp gains in Nvidia and the stock market for much of the last two years. Fourth-quarter 2024 U.S. earnings season is in full swing, with shares of Royal Caribbean (RCL.N) , opens new tab rallying 12% after the cruise operator forecast annual profit largely above expectations. Boeing (BA.N) , opens new tab shares ended up 1.5%, though it reported its biggest annual loss since 2020. General Motors (GM.N) , opens new tab shares fell 8.9% following its results and outlook, with investors weighing the threat of tariffs that could hit the automaker's business. U.S. President Donald Trump said late on Monday he plans to impose tariffs on imported computer chips, pharmaceuticals and steel. On Wednesday, the Federal Reserve is widely expected to hold its lending rate steady in its first interest-rate decision of the year. Declining issues outnumbered advancers by a 1.13-to-1 ratio on the NYSE. There were 165 new highs and 46 new lows on the NYSE. On the Nasdaq, 2,188 stocks rose and 2,216 fell as declining issues outnumbered advancers by a 1.01-to-1 ratio. Volume on U.S. exchanges was 13.87 billion shares, compared with the roughly 15.5 billion average for the full session over the last 20 trading days. Sign up here. https://www.reuters.com/markets/us/sp-nasdaq-futures-regain-some-ground-after-tech-rout-2025-01-28/
2025-01-28 23:44
Smolensk Nuclear Power Plant operating normally amid attack, RIA reports Defence ministry says 104 drones detected Oil refinery in Nizhny Novgorod on fire, media report Jan 29 (Reuters) - A nuclear power plant was among the targets of a massive Ukrainian drone attack against Russian oil and power facilities, Russian officials and media outlets reported on Wednesday. Air defence systems destroyed a drone attempting to strike a nuclear power facility in the western region of Smolensk bordering Belarus, Governor Vasily Anokhin said on the Telegram messaging app. The Smolensk Nuclear Power Plant, the largest power generating plant in Russia's northwest, was working normally, RIA state news agency reported, citing the plant's press service. Reuters could not independently verify the reports and there was no comment from Ukraine. Russia's defence ministry said on Telegram that 104 drones were involved in raids across western Russia, 11 of which were destroyed over the Smolensk region. In total, Russian air defences destroyed drones over nine regions, nearly half of them over Kursk, where Russian forces are fighting to drive out Ukrainian troops that have occupied several villages. Russian petrochemicals giant Sibur said it had temporarily suspended operations at its plant in Kstovo on Wednesday morning after debris from a Ukrainian drone sparked a fire. There were no casualties at the plant, which is in the Nizhny Novgorod region about 800 km (500 miles) from the Ukrainian border, the company said, adding that emergency services were on site. One person was injured and hospitalised as a result of a drone attack on the Belgorod region bordering Ukraine, the regional governor said. Russian aviation watchdog Rosaviatsia temporarily halted flights at the Kazan airport in Russia's Republic of Tatarstan and at the Pulkovo airport in the Leningrad region. Flights have resumed since, according to Rosaviatsia's Telegram statements. Both sides deny targeting civilians in their attacks in the war that Russia started with a full-scale invasion in February 2022. Kyiv says that its attacks inside Russia aim to destroy infrastructure key to Moscow's war efforts. Sign up here. https://www.reuters.com/world/europe/ukraine-drone-attacks-target-russian-power-oil-facilities-officials-media-say-2025-01-28/
2025-01-28 23:10
Slovak leader to discuss Ukraine gas transit with EU Russia says it favours renewed Ukrainian transit Ukraine's Zelenskiy says Fico mistaken to seek Russian energy Jan 28 (Reuters) - Slovakia's Prime Minister Robert Fico, who has sought the resumption of Russian gas transit through Ukraine, will discuss the issue with European Commission officials on Thursday, his office said on Tuesday. The Kremlin said it favoured a resumption of transit through Ukraine, which has refused to renew an agreement to allow it on grounds it helps fund Russia's war against Kyiv. Transit through Ukraine has been an established route for sending supplies to Slovakia, Austria and ex-Soviet Moldova. Ukrainian President Volodymyr Zelenskiy chided Fico for trying to secure new supplies from Moscow instead of from Western countries. Fico met Russian President Vladimir Putin in the Kremlin last month to discuss gas flows to his country. Slovakia has welcomed a European Commission statement on continuing talks with Ukraine on the possible renewal of gas transit, adding that it now saw the option of shipping gas from Azerbaijan as being back on the table. Slovakia and Hungary have been pressing the EU to step in to restore the flow of gas to them through a major pipeline. Hungary said on Monday it had received guarantees from the Commission to protect its energy supply, something it described as a prerequisite for Budapest agreeing to renew EU sanctions on Russia. Kremlin spokesman Dmitry Peskov said the issue was one of commerce and Russia "is interested in continuing this commerce." "We are interested in selling our products, especially since they are not only more competitive compared to American liquefied gas, but they are much more advantageous for European buyers." U.S. President Donald Trump last week lifted the previous U.S. administration's freeze on export permits, a move likely to bolster U.S. energy production. Zelenskiy, writing on Telegram, welcomed Trump's move, describing it as "just what is needed for security and stability - more energy resources from our partners for Europe". "Money is needed to pay for U.S. LNG, while for Russian gas one pays with money and with independence and sovereignty," Zelenskiy wrote. "But not Mr Fico. He chooses Moscow instead of America and other partners who can provide his country with gas on a commercial basis. And that is his mistake." Zelenskiy and Fico have traded verbal barbs over Fico's bid to restore Russian gas flows through Ukraine. Fico has threatened to cut emergency electricity supplies to Ukraine, reduce aid for its refugees in Slovakia or use its veto right on European Union decisions relating to Kyiv. Zelenskiy hosted a Slovak opposition leader in Kyiv and supported protesters denouncing Fico's policy tilt toward Russia. Sign up here. https://www.reuters.com/world/europe/slovakias-fico-discuss-gas-transit-with-european-commission-thursday-2025-01-28/
2025-01-28 23:05
BRASILIA, Jan 28 (Reuters) - Brazil will not use its air force planes to assist with the deportation of Brazilian migrants in the United States, the South American country's top diplomat said on Tuesday, just days after a major flare up in neighboring Colombia over the issue. On Sunday, Colombia and the United States pulled back from the brink of a trade war caused by a spat over deportation flights utilizing military aircraft including U.S. planes that transported shackled migrants. A day later, Brazil summoned a senior U.S. diplomat to discuss the deportation of Brazilian migrants, after it condemned handcuffing of deportees on a flight to repatriate migrants from the United States. Brazil's Foreign Affairs Minister Mauro Vieira told journalists that its citizens cannot be handcuffed in deportation flights while in Brazilian territory, adding that officials plan to discuss with U.S. authorities how to conduct deportation flights in a dignified way. Sign up here. https://www.reuters.com/world/americas/brazil-will-not-use-its-air-force-us-migrant-deportations-2025-01-28/
2025-01-28 22:35
Finance minister Reeves outlines plans for growth Government supports long-delayed Heathrow runway plan She highlights home-building, transport links, reservoirs Says growth 'won't come without a fight' Recent jump in borrowing costs exposed UK vulnerability EYNSHAM, England, Jan 29 (Reuters) - British finance minister Rachel Reeves gave the government's backing to a long-delayed new runway at London's Heathrow Airport on Wednesday as the centrepiece of her plan to speed up the country's sluggish economy. Reeves, under pressure to address concerns about growth after a bond market selloff this month, also listed plans for new wind farms and reservoirs and a "growth corridor" between the university cities of Oxford and Cambridge. Announcing support for a third runway at Heathrow, Europe's busiest airport, Reeves said past delays had cast doubt among investors over the seriousness of successive governments to do what is needed to open new export markets. "We cannot duck the decision any longer," Reeves said in a speech at a medical equipment plant operated by Siemens Healthineers near Oxford. She denied the increase in flights would undermine Britain's net zero commitments but campaigners and London Mayor Sadiq Khan - a senior figure in the governing Labour Party - said they opposed the move on climate concerns. Reeves is seeking to address fears that Britain's economy is growing too slowly to reduce its public debt burden quickly. But many of the projects on her list will take years to complete while the tax increases she announced for businesses in October swiftly hit corporate hiring and confidence. Farmers in tractors gathered outside the Siemens plant where she spoke to protest her move to end an inheritance tax exemption for farming families. Reeves said the government would clear the way for 16 gigawatts of offshore wind power generation and announced investments by a state fund of 65 million pounds ($80.7 million) in an electric vehicle-charging network and 28 million pounds in a mining operation in southwest England. She said Britain would seek to build up its post-Brexit trade ties with the European Union and its U.S. relationship under President Donald Trump, while the business minister would visit India soon to restart talks on a trade deal. Reeves and Prime Minister Keir Starmer promised voters before last July's election they would turn Britain into the fastest-growing Group of Seven (G7) economy. But since then it has lost momentum, with many employers blaming Reeves' tax hike. This month's surge in global government borrowing costs - which hit the UK particularly hard - only increased the pressure on Reeves to get the economy moving again. OVERCOMING LOW GROWTH Reeves said in Wednesday's speech that home-building and new transport links between Oxford and Cambridge would help to create "Europe's Silicon Valley". She also highlighted 8 billion pounds ($9.95 billion) of investment over five years by water companies, including the building of nine reservoirs. "Low growth is not our destiny. But growth will not come without a fight," she said. Starmer and Reeves have previously said they will not allow opponents of infrastructure and big construction projects to use planning rules to block development, and they are in the process of streamlining the system. Heathrow Chief Executive Thomas Woldbye told Reuters a third runway could be operational by 2035. "There is a mood in government to show economic growth. We are now an essential part of that plan," Woldbye said Greenpeace UK’s policy director Doug Parr said the government should do more on renewable power and innovation in green steel, electric vehicles and batteries "instead of picking up any old polluting project from the discard pile". The Bank of England has forecast that Britain's economy did not grow at all in the second half of 2024. The bank said in November it expected growth of 1.5% in 2025, largely due to higher government spending. Morgan Stanley, Goldman Sachs and J.P. Morgan have more recently forecast growth of under 1% this year, although the International Monetary Fund has said Britain will outpace its even more sluggish European peers. Gilles Moec, chief economist with AXA, Europe's second-biggest fund manager, said Britain and other governments were seeking solutions that avoided significant increases in public spending. "If you can't put the money into these big funded programmes, it is not going to look spectacular... and then it may not trigger the confidence boost that you want," he added. ($1 = 0.8039 pounds) Sign up here. https://www.reuters.com/world/uk/uks-reeves-gears-up-fight-get-economy-growing-again-2025-01-28/
2025-01-28 22:31
Jan 29 (Reuters) - Australia's Whitehaven Coal (WHC.AX) , opens new tab posted a 92.7% rise in its second-quarter production on Wednesday, aided by strong contributions from its New South Wales mines and Queensland mines, while remaining optimistic of future gains from metallurgical coal prices due to supply constraints. Whitehaven anticipates that the long-term production depletion of hard coking coal from Australian producers, along with increased seaborne demand from India, will drive metallurgical coal prices higher. It expects its metallurgical coal portfolio to gain from these supply-constrained market dynamics. Shares of the country's top independent coal miner rose as much as 4.6%, eyeing its best day in over two weeks, while the benchmark stock index (.AXJO) , opens new tab was up 0.7% at 0047 GMT. The miner's New South Wales operations, which include the Maules Creek and Narrabri mines, recorded a 1.3% rise in its managed run-of-mine (ROM) coal production. Whitehaven's Blackwater and Daunia mines, which it purchased from BHP Group (BHP.AX) , opens new tab for $4.1 billion, saw a combined ROM coal production of 4.6 million metric tons for the December quarter. However, this was 14% lower than the September quarter owing to some expected seasonal weather disruptions. The miner's Daunia mine posted a strong sales volume of 1.5 million tons in the December quarter, up 34% sequentially due to good coal availability, strong demand and improved availability of rail paths on the Goonyella line. Whitehaven is continuing to work on the feasibility studies, including synergies with the Daunia coal mine, it said. The company earned A$226 per ton of coal sold in the quarter, compared with an average realised price of A$216 per ton a year earlier. Whitehaven said its managed ROM coal production for the December quarter was 9.7 million tons, compared with 5 million tons produced a year earlier, slightly ahead of the Visible Alpha consensus estimate of 9.5 million tons. "We are on track to deliver firmly in the upper half of FY25 production and sales guidance, and at the low end of our full-year cost guidance range," said Chief Executive Paul Flynn. Sign up here. https://www.reuters.com/markets/australias-whitehaven-coal-second-quarter-output-rises-by-927-2025-01-28/
