2025-01-17 20:30
Jan 17 (Reuters) - One of the world's largest battery storage facilities — Vistra Corp's (VST.N) , opens new tab 3000-megawatt in Moss Landing, south of San Francisco — continues to be on fire as of Friday, a day after it went up in flames. The blaze, whose cause remains under investigation, is expected to remain contained to the building. The fire is nowhere near the Los Angeles-area wildfires. Fire Chief Joel Mendoza of the North County Fire District said at this point, most of the fire had gone out. He was speaking at a press conference held by the County of Monterey. "We have very little active flame (and) we have very little products of combustion being put out into the atmosphere," he added. A water-based mitigation system did not work as designed, Vistra's senior director of community affairs Brad Watson said at the conference. "Part of what we will be doing is studying and investigating why that didn't work as designed. And that will be one of the many, many questions we will be going through to find out what happened here," Watson added. Earlier in the day, a Monterey Sheriff official had said there were no active fire suppression efforts going on, "as the best approach, according to fire staff, is to allow the building and batteries to burn." Both Vistra and the county official said that all site personnel had been evacuated and no injuries were reported. The fire had also prompted evacuation of places nearby. Vistra has not yet released any statement on potential financial impact from the fire or any timeline on recovery efforts. Vistra did not immediately respond to a request seeking details on its investigation. An adjacent Tesla battery facility was not affected by the fire, the official added. The impact of the ongoing fire on the energy storage sector and the supply chain remains unclear. Lithium-ion batteries have solidified their position as the technology of choice in the electric vehicle market, and the market for these batteries is projected to keep growing at about 30% annually. Sign up here. https://www.reuters.com/world/us/vistras-battery-storage-facility-goes-up-flames-spurs-evacuation-orders-2025-01-17/
2025-01-17 20:26
BRASILIA, Jan 17 (Reuters) - Brazil's Finance Minister Fernando Haddad said on Friday that high interest rates are poised to have a much stronger effect on inflation than many expect, dismissing fears that fiscal challenges could undermine the effectiveness of monetary policy. "I don't believe in fiscal dominance at this moment," Haddad told CNN Brasil, referring to a scenario in which central bank rate hikes drive up government debt servicing costs, worsen fiscal conditions, and deteriorate market expectations, ultimately fueling inflation instead of containing it. "I believe monetary policy will have an impact on inflation," Haddad said. "And fiscal policy needs to be more persistent." Amid stronger-than-expected economic growth and a sharp weakening of the Brazilian currency, driven by global uncertainties as well as local fiscal concerns, the central bank signaled in December that it would implement two additional 100 basis-point rate hikes by March. This would push the benchmark interest rate to 14.25%, its highest level in more than eight years. Regarding the currency depreciation, Haddad stressed that Brazil operates under a floating exchange rate system but said he considered that "anything above 5.70 reais per dollar is expensive considering the country's economic fundamentals." The Brazilian real was trading at around 6.05 per U.S. dollar on Friday, but it had weakened to nearly 6.30 at the end of last year. Haddad also said that President Luiz Inacio Lula da Silva's pledge to raise the income tax exemption threshold to 5,000 reais ($825.33) would hinge on introducing a minimum tax on all income earned by wealthy individuals. The government first unveiled the proposal late last year alongside a much-anticipated fiscal control package, which disappointed investors and contributed to a selloff in Brazilian assets, amid fears that Lula's administration would struggle to rein in public debt growth. Haddad emphasized that the minimum tax proposal would be submitted this year for implementation in 2026 and would "certainly" prompt intense debate in Congress. He also highlighted ongoing efforts to establish a mechanism to exclude currently tax-exempt revenues from individuals' total income calculations, provided these revenues are distributed by companies that comply fully with corporate tax obligations. ($1 = 6.0582 reais) Sign up here. https://www.reuters.com/world/americas/brazils-haddad-says-high-interest-rates-will-curb-inflation-2025-01-17/
2025-01-17 20:18
Canadian dollar weakens 0.5% against the greenback Trades in a range of 1.4383 to 1.4464 Price of U.S. oil settles 1.7% lower 10-year yield hits a 10-day low TORONTO, Jan 17 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Friday, with the currency approaching a multi-year low it hit in December as the looming U.S. presidential inauguration focused attention on expected trade tariffs. The loonie was trading 0.5% lower at 1.4460 per U.S. dollar, or 69.16 U.S. cents, after trading in a range of 1.4383 to 1.4464. Last month, it touched its weakest level in nearly five years at 1.4467. "The CAD is trading close to its recent low against the USD into the end of the week," Shaun Osborne, chief currency strategist at Scotiabank, said in a note. "The soft performance indicates that investors remain deeply concerned about what the next week - and those that follow - will bring." Canada is ready to respond to tariffs from its top trade partner the United States on Monday if President-elect Donald Trump, who takes office that day, follows through on his threat to impose them, Foreign Minister Melanie Joly said. Investors were also awaiting the Bank of Canada's fourth-quarter Business Outlook Survey on Monday, which could offer clues on the prospects of an additional interest rate cut by the central bank later this month. The BoC will communicate more clearly and improve its forecasting models to help predict future shocks, it said, after publishing a review of the steps taken to tackle the pandemic. The U.S. dollar (.DXY) , opens new tab strengthened against a basket of major currencies, adding to the gains it made in recent weeks as U.S. Treasury yields climbed, and the price of oil, one of Canada's major exports, settled 1.7% lower at $78.68 a barrel. Canadian bond yields fell across a flatter curve. The 10-year was down 4.1 basis points at 3.301%, after earlier touching its lowest level since Jan. 7 at 3.291%. Sign up here. https://www.reuters.com/markets/currencies/canadian-dollar-approaches-december-low-tariff-concern-2025-01-17/
2025-01-17 20:00
Jan 17 (Reuters) - A blast of Arctic air is set to cover much of the United States with temperatures below freezing starting on Friday and into next week, impacting millions of Americans in nearly all of the contiguous states. Temperatures will reach below 10 degrees Fahrenheit (-12 C) in the Northern Plains and Upper Midwest, into the teens in the central Plains and Midwest and near 30 degrees in parts of the South on Saturday, before the front moves into the East Coast and the Southeast on Monday, the National Weather Service said. Americans living as far south as the Southern Plains can expect to see sub-zero wind chills beginning Sunday night, said Zack Taylor, meteorologist with the National Weather Service's Weather Prediction Center. "That will actually linger for several days for much of the southern U.S., Ohio Valley, mid-Atlantic and the Northeast as we get into early to mid-next week," he said. The coldest weather of the season to date will be due to a phenomenon called a polar vortex, an upper-level jet stream that typically circulates around both the North and South Poles, but can push cold winds down into the U.S. and Canada when it weakens and expands. The bitter cold temperatures will bring "life-threatening" risks of hypothermia and frostbite, the NWS warned. President-elect Donald Trump said on Friday his inauguration will be held indoors on Monday because of severe cold. Temperatures are forecast to be only as high as 23 degrees on Monday in Washington, D.C., with wind chill set to make it feel even cooler. States from Virginia up into New England could see heavy snow along with frigid temperatures, with Washington, D.C., Baltimore, Philadelphia, New York City and Boston potentially receiving several inches of snow. Southern states could also get snow and ice from a separate storm starting Monday night across portions of Texas that may spread as far south as the Gulf Coast, said Taylor. "That's something that we are keeping a close eye on, given the sensitivities of those not accustomed to winter weather and not used to those kind of situations," he said. Sign up here. https://www.reuters.com/world/us/polar-vortex-set-envelop-much-us-freezing-temperatures-2025-01-17/
2025-01-17 19:38
Waldron widely seen as a successor to Solomon Solomon's 2024 compensation rose by 26% Goldman Sachs made $4.11 billion net income in Q4, beating estimates NEW YORK, Jan 17 (Reuters) - Goldman Sachs CEO David Solomon was awarded an $80 million stock bonus to stay at the helm for another five years, a stark turnaround for a leader whose survival was questioned after the firm's ill-fated foray into consumer banking. John Waldron, Goldman's (GS.N) , opens new tab president and chief operating officer, and who is widely seen as a successor to Solomon, was also awarded a retention bonus of $80 million in restricted stock, the bank said in a regulatory filing on Friday. The bonuses, which vest in five years, are an effort by Goldman's board to retain Solomon and Waldron as a senior leadership team, the company said in the filing. Goldman also reported that Solomon's compensation for 2024 rose by 26% to $39 million. CEO succession is in focus across Wall Street. From Jamie Dimon at JPMorgan Chase to Brian Moynihan at Bank of America (BAC.N) , opens new tab , investors are focused on the long tenures of executives running the largest U.S. banks. The latest vote of confidence for Solomon, 63, comes after a turbulent period during which investment banking activity declined and Goldman's consumer business lost money, prompting criticism of his leadership and speculation two years ago that his job was at risk. Solomon, 63, has faced off doubters as the bank's stock rallied, markets rebounded and he slimmed down Goldman's retail operations. Goldman Sachs shares rose almost 2% on Friday afternoon. The bank's share price jumped 48% in the last year, and is up 174% since Solomon took over in 2018. "The firm is delivering strong performance and the board is determined to maintain our momentum, ensure stability, and keep in place a solid succession plan," Goldman Sachs spokesperson Tony Fratto said. "The board is also evolving compensation to enhance the firm’s ability to continue to attract and retain the best talent at a time when the competition for Goldman Sachs talent is especially fierce, including from asset managers and other non-banks," he added. Goldman Sachs beat Wall Street estimates and earned its biggest quarterly profit in more than three years as its investment bankers brought in more deal fees, while its traders benefited from active markets. Net income climbed to $4.11 billion in the fourth quarter, the bank reported on Wednesday. Solomon told the Reuters Next conference in December that he will lead the bank as long as the board wants him to remain. Solomon's compensation rose from $31 million in 2023. His 2024 compensation included a $2 million base salary and $8.3 million in cash bonus, with the remainder in stock and a new type of incentive award. BACK TO TRADITIONAL MAINSTAYS After graduating from college, Solomon was rejected by Goldman for a job, and later joined as a partner in 1999 from Bear Stearns. He climbed the ranks in investment banking and took over from Lloyd Blankfein, who steered Goldman through the 2008 financial crisis and its aftermath. Under Solomon, Goldman decided to shrink the consumer business that he once championed. Its retail operations lost billions of dollars and prompted the bank to sell assets and take writedowns. The Wall Street powerhouse has since shifted its focus back to traditional mainstays of investment banking and trading, while pushing growth areas of asset and wealth management. "This week it seems like things are going well, next week things could be tough," Solomon told Reuters in December. "But we’re committed to a strategy, we have enormous support from our board, we have an incredible team and I think we’re making good progress, but more to do." Waldron, 55, who has been president and chief operating officer since 2018 and previously served as co-head of investment banking, is seen as Solomon's closest lieutenant. Solomon and Waldron were among executives whose pay was cut by millions in 2020 after a graft scandal at Malaysian state fund 1MDB prompted Goldman to pay a record $2.9 billion in the United States to settle investigations. Solomon said in a statement at the time that none of the past or current members of senior management were involved in, or aware of the firm's participation in any illicit activity when Goldman arranged the Malaysian bond deals. Sign up here. https://www.reuters.com/business/finance/goldman-sachs-boosts-ceo-pay-39-million-lines-up-five-more-years-helm-2025-01-17/
2025-01-17 19:14
New policy for target-date funds triggered capital gains SEC says Vanguard did not warn about tax ramifications The settlement also resolves claims by 43 state regulators Jan 17 (Reuters) - Vanguard Group will pay $106.4 million to settle U.S. Securities and Exchange Commission charges alleging it failed to disclose important tax information about its popular target-date funds, resulting in hundreds of thousands of ordinary investors getting stuck with inflated tax bills. The settlement stemmed from Vanguard's December 2020 decision to reduce the minimum investment in lower-cost fund classes meant for institutional clients to $5 million from $100 million. This led many investors who qualified for those funds to shift from higher-cost retail fund classes. The SEC said the retail funds were then forced to sell assets to meet redemptions, and pass large tax burdens from capital gains to the remaining investors. While Vanguard did warn target-date fund investors their tax burdens could change from year to year, it did not warn of that risk for when investors shifted to institutional funds from retail funds, the SEC said. Vanguard's target-date funds contain mixes of stocks, bonds and cash that are designed to become less risky as investors age. They are also designed to be tax-efficient. The payout includes $92.9 million of restitution, plus a $13.5 million civil fine. Vanguard did not admit or deny wrongdoing in agreeing to settle. "Materially accurate information about capital gains and tax implications is critical to investors saving for their retirements," Corey Schuster, chief of the SEC enforcement division's asset management unit, said in a statement. In a statement, Vanguard said it was pleased to settle, and "committed to supporting the more than 50 million everyday investors and retirement savers who entrust us with their savings." The settlement also resolved claims by a coalition of regulators in 43 U.S. states, Washington, D.C. and the U.S. Virgin Islands, which was led by the attorneys general of New York and New Jersey and the Connecticut Department of Banking. In November, Vanguard agreed to pay $40 million to settle similar claims in a lawsuit by fund investors. It also agreed to pay $6.25 million in July 2022 to resolve similar claims by Massachusetts Secretary of State William Galvin. The Valley Forge, Pennsylvania-based company, had $10.4 trillion of assets under management as of Nov. 30, 2024. Sign up here. https://www.reuters.com/business/finance/vanguard-pay-1064-mln-settle-us-sec-charges-regulator-says-2025-01-17/
