2025-01-23 20:53
DAVOS, Switzerland, Jan 23 (Reuters) - Despite watching Bitcoin's scorching run past $100,000 and the inauguration of Donald Trump, who has pledged to be a "crypto president" in the U.S., some of the world's largest investors said this week they still plan to stay on the sidelines. "I am not an advocate, nor a critic ... it is not what it was supposed to be, which was an alternative to banking," said Anne Walsh, chief investment officer at Guggenheim Partners, which is headquartered in New York and Chicago. "To me, what crypto really correlates to is Nasdaq - it's a risk-on appetite indicator to me," she told the Reuters Global Markets Forum , opens new tab on the sidelines of the World Economic Forum's annual meeting in Davos. Walsh said her investment firm, which manages assets of more than $335 billion, has so far not invested in crypto. Meanwhile, Nicolai Tangen, chief executive of Norway's $1.8 trillion sovereign wealth fund, the world's largest, said he did not see crypto becoming a part of Norges Bank Investment Management's portfolio. Bitcoin hit a record high of $109,071 on Monday when Trump was sworn in as president. The world's largest cryptocurrency more than doubled in price last year after the U.S. market regulator's approval for exchange traded funds (ETF) tied to its spot price, and optimism over easing regulatory hurdles with Trump's return to the White House. "As an investor, what makes it challenging is figuring out what the true fundamental value of crypto is," said Saira Malik, CIO and head of equities and fixed income at Chicago-based asset manager Nuveen. Malik said that Nuveen, which has $1.3 trillion of assets under management, does not have any direct exposure to crypto. It does, however, invest in companies that could be exposed to the digital asset. "There's a lot of technology, a lot of intellectual power and talent that you need to bring into an organization to really excel in (crypto)," said Melissa Stolfi, chief operating officer at Los Angeles-based asset manager TCW Group. Stolfi said her firm, which manages assets worth a total of nearly $200 billion, remained focused on enhancing and maintaining its core business instead. (Join GMF, a chat room hosted on LSEG Messenger, for live interviews: https://lseg.group/4ajdDTy , opens new tab) Sign up here. https://www.reuters.com/business/finance/cryptos-charms-leave-some-investors-davos-cold-2025-01-23/
2025-01-23 20:45
BRASILIA, Jan 23 (Reuters) - Brazil sees an opportunity to amplify the voices of developing nations in upcoming climate finance talks, according to comments on Thursday from the head of the global COP30 summit set to be hosted by the South American nation later this year. The comments from Andre Correa do Lago come as world leaders grapple with the recent withdrawal from the Paris climate accord by the United States, ordered by new U.S. President Donald Trump. Correa do Lago told reporters in Brasilia that negotiations will likely be "harder" at the COP30 summit compared to last year's meetings, when the United States was "engaged in having policies to fight climate change." Expectations for the COP30, to be hosted in the Amazon city of Belem in November, include discussions on a longstanding dispute over who will pay for poorer countries to transition their economies to cleaner energy and deal with the impacts of global warming. During last year's summit in Azerbaijan, a bitter fight pitted rich and poor nations against one another and ended with a pledge from wealthy countries to annually contribute $300 billion by 2035 to help fund the transition and mitigate impacts. But the pledge is only a fraction of the $1.3 trillion per year developing countries argue is needed. Correa do Lago noted that rich countries want to lower their financial contributions, which he described as "profoundly wrong." The COP30 head said Brazil will also seek to parlay its current leadership of the BRICS bloc of developing nations to build a consensus among those countries to strengthen their negotiating position ahead of the Belem climate talks. Sign up here. https://www.reuters.com/business/environment/us-exit-paris-agreement-makes-it-harder-meet-climate-finance-targets-cop30-head-2025-01-23/
2025-01-23 20:38
Action orders working group to start work on crypto regulations Also orders banking services for crypto companies be protected Order bans creation of US central bank digital currencies Trump had courted crypto cash during presidential campaign Jan 23 (Reuters) - U.S. President Donald Trump on Thursday ordered the creation of a cryptocurrency working group tasked with proposing new digital asset regulations and exploring the creation of a national cryptocurrency stockpile, making good on his promise to quickly overhaul U.S. crypto policy. The much-anticipated action also ordered that banking services for crypto companies be protected, alluding to industry claims that U.S. regulators have directed lenders to cut crypto companies off from banking services - something regulators deny. The order also banned the creation of central bank digital currencies in the U.S. which could compete with existing cryptocurrencies. In another key action pushed for by the crypto industry, the U.S. Securities and Exchange Commission late on Thursday rescinded accounting guidance that had made it very expensive for some listed companies to safeguard crypto assets on behalf of third parties. The crypto industry said that guidance had stymied digital asset adoption. On the campaign trail, Trump courted crypto cash by pledging to be a "crypto president" and promote the adoption of digital assets. That is in stark contrast to former President Joe Biden's regulators which, in a bid to protect Americans from fraud and money laundering, cracked down on the industry, suing exchanges Coinbase, Binance and dozens more, alleging they were flouting U.S. laws. The companies deny the allegations. Thursday's order was cheered by the crypto industry, which had been pushing for the new administration to send a strong signal of support in Trump's first few days in office. "Today’s crypto executive order marks a sea change in U.S. digital asset policy," said Nathan McCauley, CEO and co-founder of crypto company Anchorage Digital. "By taking a whole-of-government approach to crypto, the Administration is making a significant first step toward writing clear, consistent rules of the road." If implemented by the relevant regulators, Trump's order has the potential to push cryptocurrencies into the mainstream, regulatory and crypto experts said. It follows Tuesday's SEC announcement that it was creating a taskforce to overhaul crypto policy. Bitcoin hit a fresh record high of $109,071 on Monday amid investor excitement over the new crypto-friendly administration, although it was down to about $103,000 as of late Thursday afternoon. "Just days into his administration, President Trump is delivering on his promises... to keep the United States a leader in digital assets innovation," Senator Tim Scott, the Republican chair of the Senate Banking Committee, said in a statement. The industry has for years argued existing U.S. regulations are inappropriate for cryptocurrencies and have called for Congress and regulators to write new ones clarifying when a crypto token is a security, commodity or falls into another category. The working group, which will include the Treasury secretary, chairs of the SEC and Commodity Futures Trading Commission, along with other agency heads, is tasked with developing a regulatory framework for digital assets, according to the order. That includes stablecoins, a type of cryptocurrency typically pegged to the U.S. dollar. The group is also set to "evaluate the potential creation and maintenance of a national digital asset stockpile... potentially derived from cryptocurrencies lawfully seized by the Federal Government through its law enforcement efforts." The order did not provide further details on how such a stockpile would be set up and analysts and legal experts are divided on whether an act of Congress will be necessary. Some have argued the reserve could be created via the U.S. Treasury's Exchange Stabilization Fund, which can be used to purchase or sell foreign currencies, and to also hold bitcoin. In December, Trump named venture capitalist and former PayPal (PYPL.O) , opens new tab executive David Sacks as the crypto and artificial intelligence czar. He will chair the group, the order said. Sign up here. https://www.reuters.com/business/finance/trump-signs-order-create-cryptocurrency-working-group-2025-01-23/
2025-01-23 19:54
BUENOS AIRES, Jan 23 (Reuters) - Argentina's economy grew for the first time in half a year, posting a modest 0.1% year-on-year expansion in November that beat expectations, official data showed on Thursday. Analysts surveyed by Reuters had forecast a 0.6% contraction in the grains-rich South American nation. The data points to a possible turnaround for Argentina's battered economy, which was hit hard by libertarian President Javier Milei's tough austerity measures aimed at lowering inflation and stabilizing. The data compares with a 0.6% year-on-year contraction the prior month and is the first expansion since 1.4% growth in May last year, according to revised data. Growth in November was mainly driven by the fishing sector and the financial intermediation sector, according to data from the statistics agency INDEC. Some 10 productive sectors contracted in November, according to the data, with the construction and commodities sectors posting the largest declines. Argentina's economic activity increased 0.9% in November versus a month earlier, the second monthly increase in a row. Sign up here. https://www.reuters.com/world/americas/argentina-economy-expands-first-time-since-middle-last-year-2025-01-23/
2025-01-23 19:31
All three nominees sent to full senate for vote Democrat votes against Wright for his stance wildfires are overhyped Biden had sought to limit oil drilling WASHINGTON, Jan 23 (Reuters) - U.S. Senate committees on Thursday approved President Donald Trump's choices to run energy and environmental policy - officials who, if backed by the full Senate, will seek to maximize fossil fuel output and scrap chunks of climate policy. The panel voted 18-2 to approve former North Dakota governor Doug Burgum to lead the U.S. Department of Interior and a new national council on energy, expected to boost production of oil and gas. The committee also voted 15-5 to approve Chris Wright, the Energy Department pick and the CEO of oilfield services company Liberty Energy (LBRT.N) , opens new tab. In addition, the Senate environment committee voted 11-8 to approve former U.S. Representative Lee Zeldin, Trump's choice to run the Environmental Protection Agency. The full Senate, which is controlled by Trump's Republican party, will next consider the nominations. Burgum has said he will vigorously pursue maximizing energy production from U.S. public lands and waters, calling it key to national security. Burgum's comments to lawmakers during his nomination hearing signaled a sharp turn in policy. Former president Joe Biden, as part of his efforts to tackle climate change, for years sought to limit oil and gas drilling by reducing federal lease auctions and banning future development in some offshore waters. Wright believes fossil fuels are the key to ending world poverty, which is a greater problem than climate change's "distant" threat, according to a report he wrote while at Liberty. He will step down from the company if approved by the Senate. In his nomination hearing, Wright said the wildfires that devastated Los Angeles are "heartbreaking," but stood by his previous comments on social media about wildfires. In 2023 Wright said on social media that "hype over wildfires is just hype to justify" policies to curb climate change. Senator Alex Padilla, a California Democrat who voted against Wright, said his comments regarding wildfires and his refusal to retract his statement have "made it impossible for me to support his nomination." Senator Mike Lee, a Republican, said both Wright and Burgum have proved they are committed to carrying out Trump's plan to "unleash American energy by ending the policies of climate alarmism and extremism." Zeldin often voted against legislation on green issues including a measure to stop oil companies from price gouging. Zeldin said at his nomination hearing he believes climate change is real and a threat but that the Environmental Protection Agency (EPA) is just authorized, not required, to regulate carbon dioxide emissions. Zeldin would likely be tasked with carrying out several of Trump's executive orders, including making recommendations to the Office of Management and Budget on "the legality and continuing applicability” of the greenhouse gas endangerment finding of 2009. That finding, upheld by the Supreme Court, gives the EPA the authority to take measures to regulate those emissions. Sign up here. https://www.reuters.com/world/us/senate-panel-easily-approves-trumps-picks-run-energy-interior-departments-2025-01-23/
2025-01-23 19:11
LITTLETON, Colorado, Jan 23 (Reuters) - Power generators have boosted output from high-polluting coal and oil-fired power stations this year to help battle an extended cold snap enveloping much of the country. Coal-fired power production across the lower 48 states was the highest since at least 2019 during Jan. 1-22, and up 6% from the same period last year, data from LSEG shows. Production from plants that burn fuel oil - used mainly as a backup to gas-fired plants - soared 170% from the same days a year ago to the highest in three years. Output from natural-gas-fired plants - the primary power source in the U.S. - declined by 2% from last year's record levels, but is holding close to the highest production rate ever for this time of year. The broad swell in fossil-fuel-fired output came just as large swathes of the country got slammed by an extended bout of below-normal temperatures, which forced power firms to lift output from every available resource. But the fossil boom also took place just as the second administration of U.S. President Donald Trump vowed to step up output and use of fossil fuels in U.S. energy production. That raises the question of whether power producers now feel they have a license to continue deploying high levels of fossil fuels for power; or will they continue to build up clean generation capacity and phase out fossil use over the long run? COLD SNAP Temperature readings across several parts of the United States plunged well below normal for several days so far in 2025. Average recorded temperatures across the Midwest, Atlantic Coast, the Plains states and throughout the South all swooped far below the long-term averages recorded in those areas, according to LSEG. To meet the resulting rise in demand for heating, power producers throughout the country cranked production from all available sources from Jan. 1-22. Nuclear power plant output climbed by 3.7% from the same days in 2023 to 2.14 million megawatt hours and the highest since 2020, while wind output climbed 1.5% to a record 1.2 million MWh. However, a nearly 3% decline in output from hydro plants - due to an enduring drought in key areas - ensured that power firms had to also lift production from fossil fuel facilities. Coal-fired production was 2.5 million MWh during the Jan. 1-22 period, compared to 2.3 million MWh the year before, while fuel-oil-fired plants lifted output to 44,420 MWh from just 16,420 MWh over the same dates in 2023. Gas-fired plants generated 4.38 million MWh of power from Jan. 1-22, down 2% from the year before. Output from solar farms was 386,112 MWh over the first three weeks of 2025, up 51% from the same dates in 2023. In all, the temperature plunge across such a large swathe of the country for such an extended period clearly necessitated the use of all power resources so far in 2025, including the use of some of the highest-polluting plants in the country. Once temperatures return to normal, power trackers will be monitoring whether generation firms dial down fossil fuel use again, or if the strong support for fossil fuels in the White House results in a sustained rise in the burning of polluting fuels throughout the U.S. generation system. The opinions expressed here are those of the author, a market analyst for Reuters. Sign up here. https://www.reuters.com/business/energy/us-power-firms-crank-up-dirty-fuel-use-fight-cold-snap-maguire-2025-01-23/
