2026-01-05 22:55
Jan 5 (Reuters) - Michael Saylor's Strategy (MSTR.O) , opens new tab had a $17.44 billion unrealized loss on digital assets in the fourth quarter tied to a decline in the value of the company's cryptocurrency stockpile. Shares of the largest corporate holder of bitcoin slumped about 47.5% in 2025 as investors reacted to swings in cryptocurrency markets that impacted Strategy's balance sheet and earnings. Sign up here. For the year ended December 31, 2025, Startegy reported a $5.40 billion unrealized loss on digital assets. In December, Strategy slashed its earnings forecast for 2025, citing a weak run in bitcoin. Firms holding bitcoin and other tokens on their balance sheets have been under pressure in recent weeks following the volatility in the crypto market. As of January 4, 2026, the balance of the USD Reserve was $2.25 billion, the company said. Strategy has maintained a U.S. dollar reserve to support the payment of dividends on its preferred stock and interest on its outstanding debt. https://www.reuters.com/business/bitcoin-hoarder-strategy-reveals-1744-billion-unrealized-loss-fourth-quarter-2026-01-05/
2026-01-05 22:25
Jan 5 (Reuters) - Utility Vistra (VST.N) , opens new tab said on Monday it has agreed to buy Cogentrix Energy, comprising 10 natural gas-fired power plants, from Quantum Capital Group for about $4.7 billion, as it looks to meet growing power demand. Shares of the company rose nearly 5% in extended trading. Sign up here. The deal includes about $2.3 billion in cash, $900 million in Vistra stock and the assumption of $1.5 billion in debt, partly offset by expected tax benefits, the Texas-based electricity producer said. This acquisition follows Vistra's $1.9 billion deal in May 2025 for seven gas-fired plants with nearly 2,600 megawatts of combined capacity from Lotus Infrastructure Partners. The U.S. Energy Information Administration estimates electricity consumption in the country to reach record highs in 2026, driven by surging demand from data centers racing to support Big Tech's growing AI ambitions. The acquisition includes three combined cycle gas turbine facilities, two combustion turbine facilities located across PJM, four combined cycle gas turbine facilities in ISO New England and one cogeneration facility in ERCOT. "The addition of this natural gas portfolio is a great way to start another year of growth for Vistra as we've completed, acquired, or developed projects in each of the competitive power regions where we operate," said Vistra CEO Jim Burke. The acquisition will diversify and expand Vistra's geographic footprint by adding 5,500 megawatts of net capacity across some of the major power regions in North America. The transaction is expected to close in mid-to-late 2026. https://www.reuters.com/business/energy/vistra-buy-cogentrix-energy-4-billion-deal-2026-01-05/
2026-01-05 22:05
LONDON, Jan 5 (Reuters) - Tankers loaded with Venezuelan crude and fuel that left the country’s waters in recent days are sailing in international waters without a known flag or ship safety documentation in place, shipping data showed. The location of the vessels is unknown since they left Venezuelan waters. Sign up here. All commercial ships have to be registered, or flagged, with a country partly to comply with safety and environmental regulations. Ship classification societies provide safety services such as checking that ships are seaworthy, and this certification is essential for securing insurance and entry into ports. U.S. President Donald Trump imposed a blockade of all sanctioned tankers bound for Venezuela in mid-December, before the dramatic capture of Venezuelan President Nicolas Maduro by U.S. troops in the early hours of Saturday. The ships have sailed despite Trump saying on Saturday that an oil embargo remained in full force after Maduro's extraction. https://www.reuters.com/business/energy/oil-tankers-sail-venezuela-with-no-flag-or-safety-documents-shipping-data-shows-2026-01-05/
2026-01-05 22:04
ORLANDO, Florida, Jan 5 (Reuters) - World stocks hit new highs on Monday as investors shrugged off the U.S. capturing Venezuelan President Nicolas Maduro and saying it will take temporary control of the country, with a surge in energy stocks complemented by another wave of AI and tech optimism. If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today. Sign up here. Today's Key Market Moves Today's Talking Points * Bullish or bearish oil? It is unclear whether events in Venezuela will be bullish or bearish for oil prices. In the long term, securing a greater and more stable flow of crude from the country with the world's largest oil reserves should add to the existing supply glut. Hence some forecasts of oil down at $50/bbl or even lower. But as SocGen analysts note, the world's largest reserves below ground don't mean more oil above it. It will take years to get that flow going - the capital needed is huge, and political risk means Venezuela won't be an attractive investment destination for a while. Indeed, the chaos could be mildly bullish for oil prices in the near term. * New year, new highs The new year has been marked by a renewed surge in risk appetite, lifting global stocks to new highs. Investors are putting money to work, and while various valuation metrics suggest headwinds ahead, momentum from last year continues to provide strong tailwinds. The latest "stocks are expensive" metric to get chins wagging is the S&P 500's price-to-sales ratio, now at a record 3.30. But there's no sign of imminent reversal - the prospect of lower oil, low and steady interest rates, and incoming fiscal stimulus could stave off a correction for some time. * China's FX The U.S. dollar has got off to a pretty solid start in 2026, but not against the Chinese yuan. The greenback fell further below 7.00 per yuan on Monday to its lowest since May 2023, with traders citing strong demand for local currency from Chinese exporters. The People's Bank of China has been guiding the yuan steadily higher in recent weeks but has had to cool the extent of its appreciation, which has been much greater on the spot market. Monday's fixing was 7.0230 - sub-7.000 fixings beckon. What could move markets tomorrow? Want to receive Trading Day in your inbox every weekday morning? Sign up for my newsletter here. 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/world/china/global-markets-trading-day-graphic-2026-01-05/
2026-01-05 20:51
Top oil companies not initially consulted, executives say Trump wants US firms to invest billions, boost Venezuelan oil output Costs, political uncertainty may hinder progress Meetings with Trump administration now expected, a source said Trump says US may subsidize oil firms to rebuild infrastructure WASHINGTON/HOUSTON, Jan 5 (Reuters) - The administration of President Donald Trump is planning to meet with executives from U.S. oil companies later this week to discuss boosting Venezuelan oil production after U.S. forces ousted its leader Nicolas Maduro, according to a source familiar with the matter. The meetings are crucial to the administration's hopes of getting top U.S. oil companies back into the South American nation after its government, nearly two decades ago, took control of U.S.-led energy operations there. Sign up here. The three biggest U.S. oil companies - Exxon Mobil (XOM.N) , opens new tab, ConocoPhillips (COP.N) , opens new tab, and Chevron (CVX.N) , opens new tab - have not yet had any conversations with the administration about Maduro's ouster, according to four oil industry executives familiar with the matter, contradicting Trump's statements over the weekend that he had already held meetings with "all" the U.S. oil companies, both before and since Maduro was seized. "Nobody in those three companies has had conversations with the White House about operating in Venezuela, pre-removal or post-removal to this point," one of the sources said on Monday. The upcoming meetings will be crucial to the administration's hopes to boost crude oil production and exports from Venezuela, a former OPEC nation which sits atop the world's largest reserves and whose barrels can be refined by specially designed U.S. refineries. Achieving that goal will require years of work and billions of dollars of investment, analysts say. It is unclear what executives will be attending the upcoming meetings, and whether oil companies will be attending individually or collectively. The White House did not comment on the meetings but said it believed the U.S. oil industry was ready to move into Venezuela. "All of our oil companies are ready and willing to make big investments in Venezuela that will rebuild their oil infrastructure, which was destroyed by the illegitimate Maduro regime," said White House spokesperson Taylor Rogers. Exxon, Chevron and ConocoPhillips did not immediately respond to requests for comment. Trump told NBC News the U.S. may subsidize oil companies to enable them to rebuild Venezuela's energy infrastructure. Asked if the administration had briefed any oil companies ahead of the military operation, Trump said, "No. But we’ve been talking to the concept of, 'what if we did it?'" "The oil companies were absolutely aware that we were thinking about doing something," Trump told NBC News. "But we didn’t tell them we were going to do it." He told NBC News it was "too soon" to say whether he had personally spoken to top executives at the three companies. "I speak to everybody," he said. CBS News, citing an unnamed source, said executives from the three were expected to meet on Thursday with Energy Secretary Chris Wright. One oil industry executive told Reuters the companies would be reluctant to talk about potential Venezuela operations in group settings with the White House, citing antitrust concerns that limit collective discussions among competitors about investment plans, timing and production levels. BIG PLANS, BIG PROBLEMS U.S. forces on Saturday conducted a lightning raid on Venezuela's capital, arresting Maduro in the dead of night and sending him to the United States to face narcoterrorism charges. Trump said hours after Maduro's capture he expects the biggest U.S. oil companies to spend billions of dollars boosting Venezuela's oil production, after it dropped to around a third of its peak over the past two decades due to underinvestment and sanctions. But those plans will be hindered by lack of infrastructure, along with deep uncertainty over the country’s political future, legal framework and long-term U.S. policy, according to industry analysts. Chevron is the only American major currently operating in Venezuela's oil fields. Exxon and ConocoPhillips, meanwhile, had storied histories in the country before their projects were nationalized by former President Hugo Chavez. "I don't think you're going to see any company other than Chevron, who's already there, you know, commit to developing this resource," said one oil industry executive, who asked not to be named discussing the issue. Conoco has been seeking billions of dollars in restitution for the takeover of three oil projects in Venezuela under Chavez. Exxon was involved in lengthy arbitration cases against Venezuela after it exited the country in 2007. Chevron, which exports around 150,000 barrels per day of crude from Venezuela to the U.S. Gulf Coast, meanwhile, has had to carefully maneuver with the Trump administration in an effort to maintain its presence in the country in recent years. Investors were optimistic, betting Washington's move against Venezuela's leadership would allow U.S. firms access to the oil reserves. A U.S. embargo on Venezuelan oil remained in full effect, Trump said. The S&P 500 energy index rose to its highest since March 2025, with heavyweights Exxon Mobil rising 2.2% and Chevron jumping 5.1%. https://www.reuters.com/business/energy/trump-administration-has-not-consulted-us-oil-majors-about-venezuela-oil-execs-2026-01-05/
2026-01-05 20:32
SAO PAULO, Jan 5 (Reuters) - A lobby group for Brazilian grain trading and crushing firms has told farming state Mato Grosso that it and many of its members are quitting a nearly 20-year-old pact protecting the Amazon basin from deforestation driven by soy farming. The soy moratorium agreement bars signatories from buying soybeans grown on Amazonian farms deforested after July 2008. Sign up here. In an announcement on Monday, Mato Grosso Governor Mauro Mendes said lobby group Abiove informed the state government officially that the association and major traders were leaving the pact. A tax law change on January 1 is a key factor. Abiove, which includes ADM (ADM.N) , opens new tab, Bunge (BG.N) , opens new tab, Cargill, Cofco and Louis Dreyfus among members, confirmed in a subsequent statement it had "initiated talks" to exit the pact, which is backed by the federal government and conservation groups. The group and about two-thirds of the companies that formerly participated no longer appeared on Monday on the moratorium agreement's website , opens new tab. WWF said in a statement that the decision was an environmental setback. Departure of the firms from the pact "weakens one of the most effective instruments for combating deforestation in the country," and it exposes farmers to increasing climate risks, WWF said. Greenpeace also criticized the move, saying it would violate promises made to investors and international markets. The moratorium is credited with slowing the destruction of the world's largest rainforest. However, as Reuters reported last week, some of the world's largest soybean traders were preparing to withdraw from the deal to preserve tax benefits in Mato Grosso, where a new law eliminating the benefits for moratorium participants took force at the start of 2026. Aprosoja-MT, an association representing farmers in Mato Grosso that had pressured companies for years to end the pact, welcomed the Abiove announcement. The farmer group called the decision a victory, claiming the moratorium agreement is illegal and unfair to those who comply with the Brazilian Forest Code. Abiove said companies will be individually responsible for fulfilling their own conservation commitments. "The legacy of monitoring and the expertise acquired over nearly 20 years will not be lost," it said. https://www.reuters.com/sustainability/climate-energy/major-brazilian-grain-traders-quit-amazon-conservation-pact-2026-01-05/
