2025-01-16 05:11

PARIS, Jan 16 (Reuters) - Private investors, major banks and tech companies are showing interest in the European nuclear industry, but governments need to lower risks to encourage investment by guaranteeing contracts and cutting regulation, the head of the International Energy Agency (IEA) Fatih Birol told Reuters. The private sector started to invest more in nuclear in 2024 to cover growing electricity demand for data centres and artificial intelligence, but long delays and cost overruns for recent projects have hurt European competitiveness. Political uncertainties and poor performance by utilities have hindered growth in Europe as nuclear power production has fallen to less than 25% of total energy production and in 10 years' time it should be less than 15%, Birol said. "It is important that the governments take some measures in terms of showing their long-term commitment and creating some derisking mechanisms for the investment, including at least partially guaranteeing contracts and streamlining the regulatory process," Birol said in an interview. He declined to name specific investors that were interested in European nuclear power. China has risen to be a top player in the nuclear industry due to a decades-long commitment by the government and the development of a strong supply chain, which Europe will need to emulate to meet its development goals, Birol said. The growth in installed nuclear power capacity in China is set to eclipse the United States and the European Union by 2030 as more projects come online, an IEA report released on Thursday said. The 63 nuclear reactors under construction globally represent more than 70 gigawatts (GW) of capacity, with half based in China, while annual investment has increased by nearly 50% in the three years since 2020, the report said. The development of small modular reactors could lead to Europe, the United States and Japan retaking the nuclear technology lead in the next decade, and with strong investment some 80 GW could be installed by 2040, the report said. However, to get to these levels the industry will need to cut costs to levels similar to large-scale hydropower and offshore wind projects. Investment would need to increase five-fold to $25 billion (24.32 billion euros) by the end of the decade, the report said. (1 euro = $1.0278) Sign up here. https://www.reuters.com/business/energy/european-nuclear-projects-need-de-risking-investors-says-iea-chief-2025-01-16/

2025-01-16 05:10

BOK holds interest rate steady at 3.00% Only seven of 34 economists polled foresaw outcome Won recently plunged to 15-year low against U.S. dollar Bank sees need for political turmoil to stabilise Most board members are open to a near-term rate cut SEOUL, Jan 16 (Reuters) - South Korea's central bank unexpectedly left its policy interest rate unchanged on Thursday and signalled it needs to wait for the domestic political turmoil weighing on the currency to stabilise before it can make further rate cuts. Bank of Korea Governor Rhee Chang-yong said the rate decision reflected a need to support the won "which in part has been weakening due to political reasons" as it hit a 15-year low versus the dollar in recent weeks. "We will be able to make a more independent decision from U.S. monetary policies to cut policy rates once (domestic) political conflicts stabilise somewhat," Rhee said at a news conference after the policy review and decision to keep its benchmark interest rate (KROCRT=ECI) , opens new tab unchanged at 3.00%. Only seven of 34 economists polled by Reuters had forecast no change in the rate level, while the remaining 27 had expected a third consecutive 25 basis-point cut, which would have been the first time for three straight cuts since 2009. The decision is the first since impeached President Yoon Suk Yeol's attempt to impose martial law in early December threw Asia's fourth-largest economy into its biggest political crisis in decades. The turmoil prompted the government to cut its 2025 economic growth forecast to 1.8% from 2.2%. The crash of Jeju Air flight 7C2216, which killed 179 people in the country's deadliest air disaster, has also weighed on the economy. The won's slide is a major concern for policymakers. In the final three months of 2024, the currency weakened 10.6% against the dollar, its biggest quarterly drop since the third quarter of 2008. Six of the bank's seven board members said the Bank of Korea should be open to rate cuts in the next three months, Governor Rhee said. The BOK in November unexpectedly cut borrowing costs by 25 basis points in a back-to-back rate reduction, citing concerns over the trade policies of U.S. President-elect Donald Trump, who takes office on Jan. 20. Local currency dealers said South Korea had relied on official smoothing operations in the onshore dollar-won market and the National Pension Service's currency hedging operations to support the won. South Korea's policy sensitive 3-year treasury bond futures sharply trimmed earlier gains after the rate decision. The won initially gained against the dollar, but then pulled back. In a statement released shortly after its policy decision, the central bank said it expected 2025 economic growth to be slower than the 1.9% it had projected earlier due to weaker exports and deteriorating consumer sentiment. "Elevated exchange rates could potentially exert upward pressure (on consumer prices), and uncertainties have increased related to global oil prices as well as economic growth at home and abroad," it also said in the statement. Economists see the central bank eyeing a more gradual pace of interest rate reductions in the year ahead. "It seems the Bank of Korea was also pressured to hold rates today by news headlines of 'three consecutive rate cuts'. Its policy stance of monetary easing remains intact, and market reaction still seems to indicate a rate cut next month," said Daishin Securities economist Kong Dong-rak. Median forecasts in the Reuters poll ahead of the rate decision pointed to one interest rate cut of 25 basis points this quarter and cuts of the same degree in both the second and third quarters taking the rate to 2.25%. Sign up here. https://www.reuters.com/markets/rates-bonds/bank-korea-unexpectedly-holds-policy-rate-amid-won-slide-2025-01-16/

2025-01-16 04:51

Maritime security officials expect halt to Houthi shipping attacks Strong US retail sales report further clouds outlook for Fed rate cuts Fed governor's comments ease some investors' rate-cut concerns HOUSTON, Jan 16 (Reuters) - Oil prices settled lower on Thursday with Yemen's Houthi militia expected to halt attacks on ships in the Red Sea, and investors weighing strong U.S. retail sales data. Brent crude futures settled down 74 cents, or 0.9%, at $81.29 per barrel, after rising 2.6% in the previous session to their highest price since July 26. U.S. West Texas Intermediate crude futures settled down $1.36, or 1.7%, to $78.68 a barrel, after gaining 3.3% on Wednesday to their highest price since July 19. U.S. crude futures fell more than $2 at times during the session. Maritime security officials said they were expecting the Houthi militia to announce a halt in its attacks on ships in the Red Sea, after a ceasefire deal in the war in Gaza between Israel and the militant Palestinian group Hamas. The attacks have disrupted global shipping, forcing firms to make longer and more expensive journeys around southern Africa for more than a year. "The Houthi development and the ceasefire in Gaza help the region stay calmer, taking some of the security premium out of oil prices," said John Kilduff, a partner at Again Capital in New York. "It's all about oil flows," Kilduff added. But investors remained cautious, as the leader of the Houthis said his group would monitor the implementation of the ceasefire deal, and continue its attacks on vessels or Israel if the deal is breached. The ceasefire in the Gaza Strip should start on Sunday as planned, despite the need for negotiators to tie up a "loose end," U.S. Secretary of State Antony Blinken said. Earlier on Thursday, the U.S. Commerce Department reported U.S. retail sales increased in December as households bought more motor vehicles and a range of other goods, pointing to strong demand in the economy. U.S. crude futures extended losses after investors interpreted the data as bolstering the Federal Reserve's cautious approach to cutting interest rates this year. But prices regained some ground after Fed Governor Christopher Waller said inflation is likely to continue to ease and possibly allow the U.S. central bank to cut interest rates sooner and faster than expected. "Waller's comments really offset the economic data this morning, in terms of making it look like there is room for the Fed to cut," Again Capital's Kilduff said. Lower interest rates can stimulate economic growth and increase oil demand. NEW SANCTIONS ON RUSSIA Investors also continued to weigh the Biden administration's latest round of sanctions targeting Russia's military industrial base and sanctions-evasion efforts, after earlier levying broader sanctions on Russian oil producers and tankers. Moscow's top customers are now scouring the globe for replacement barrels, while shipping rates also have surged. With U.S. President-elect Donald Trump being sworn in for his second term on Monday, "the market is approaching the 'wait-and-see' phase and awaits the reaction from the incoming U.S. administration on the issue" of sanctions, said Tamas Varga at oil broker PVM. Pricier oil may lead to clashes between Trump and the Organization of the Petroleum Exporting Countries, if the incoming U.S. president follows his previous playbook. During his first term, Trump demanded the producer group rein in prices whenever Brent climbed to around $80 a barrel. OPEC and its allies, collectively known as OPEC+, have been curtailing output over the past two years and are likely to be cautious about increasing supply despite the recent price rally, said Rory Johnston, the founder of Commodity Context. "The producer group has had its optimism dashed so frequently over the past year that it is likely to err on the side of caution before beginning the cut-easing process," Johnston said. Sign up here. https://www.reuters.com/markets/commodities/oil-rises-us-inventory-declines-heighten-supply-concerns-2025-01-16/

2025-01-16 03:49

JAKARTA, Jan 16 (Reuters) - Indonesia's central bank said the rupiah's fall against U.S. dollar was still under control, after the currency slid to its weakest level in more than six months on Thursday following a surprise cut in interest rates the day before. "The market reaction that occurred this morning is still under control and short term in nature because market participants are still digesting BI's decision yesterday," Edi Susianto, Bank Indonesia's head of monetary management, told Reuters. He said the central bank would ensure the supply and demand of foreign exchange in the market. BI surprised investors on Wednesday when it cut its key benchmark policy rate by 25 bps to 5.75%, saying the decision was taken to support economic growth. The rupiah was down as much as 0.4% to 16,383 per dollar on Thursday morning. The currency weakened even as other Asian currencies, such as the yen, the Malaysian ringgit and Indian rupee, strengthened against the dollar. Sign up here. https://www.reuters.com/markets/currencies/indonesia-central-bank-says-rupiahs-weakness-under-control-2025-01-16/

2025-01-16 03:14

Hino to plead guilty to submitting fraudulent engine emission data Truckmaker will pay $521.76 million criminal fine, serve five-year probation Settlement stems from California probe opened in 2019 Jan 15 (Reuters) - Toyota Motor (7203.T) , opens new tab unit Hino Motors (7205.T) , opens new tab has agreed a $1.6 billion settlement with U.S. agencies and will plead guilty over excess diesel engine emissions in more than 105,000 U.S. vehicles, the company and U.S. government said on Wednesday. The Japanese truck and engine manufacturer was charged with fraud in U.S. District Court in Detroit for unlawfully selling 105,000 heavy-duty diesel engines in the United States from 2010 through 2022 that did not meet emissions standards. The settlement, which still must be approved by a U.S. judge, includes a criminal penalty of $521.76 million, $442.5 million in civil penalties to U.S. authorities and $236.5 million to California. A company-commissioned panel said in a report in 2022 Hino had falsified emissions data on some engines going back to at least 2003. Hino agreed to plead guilty to engaging in a multi-year criminal conspiracy and serve a five-year term of probation, during which it will be barred from importing any diesel engines it has manufactured into the U.S., and carry out a comprehensive compliance and ethics program, the Justice Department and Environmental Protection Agency said. Assistant Attorney General Todd Kim said Hino "falsified data for years to skirt regulations" adding the company's "actions led to vast amounts of excess air pollution and were an egregious violation of our nation’s environmental, consumer protection and import laws." The settlement includes a mitigation program, valued at $155 million, to offset excess air emissions from the violations by replacing marine and locomotive engines, and a recall program, valued at $144.2 million, to fix engines in 2017-2019 heavy-duty trucks The EPA said Hino admitted that between 2010 and 2019, it submitted false applications for engine certification approvals and altered emission test data, conducted tests improperly and fabricated data without conducting any underlying tests. Hino President Satoshi Ogiso said the company had improved its internal culture, oversight and compliance practices. "This resolution is a significant milestone toward resolving legacy issues that we have worked hard to ensure are no longer a part of Hino’s operations or culture," he said in a statement. The California Air Resources Board began an investigation in 2019 when Hino’s certification applications were reviewed and found inconsistencies in the emissions data. "Hino knowingly took unlawful advantage of California’s incentives designed to accelerate the adoption of clean transportation technologies, which safeguard the health and safety of Californians from pollution,” said California Attorney General Rob Bonta. Hino said it booked an extraordinary loss of 230 billion yen, or about $1.54 billion, in its second quarter results in October to cover the expected costs of resolving the litigation. Over the last decade, several automakers admitted to selling vehicles with excess diesel emissions, including Volkswagen (VOWG_p.DE) , opens new tab which paid more than $20 billion in fines, penalties and settlements after it admitted in 2015 it had cheated emissions tests by installing "defeat devices" and sophisticated software in nearly 11 million vehicles worldwide. Sign up here. https://www.reuters.com/legal/toyota-unit-hino-motors-charged-with-diesel-emissions-fraud-2025-01-15/

2025-01-16 01:09

Jan 15 (Reuters) - Argentina will roll out changes to the country's anti-dumping system in an effort to promote greater competition and bring down prices, Economy Minister Luis Caputo said on social media on Wednesday. The changes include reducing the maximum duration of anti-dumping duties from five years, with unlimited renewals, to three years with a single two-year extension, Caputo said. According to the official, Argentina's current provisions for anti-dumping duties, intended to prevent unfair competition between imported and domestic goods, have increased consumer prices and industrial costs. The changes, which will be published in the government's official bulletin on Thursday, will also include shortening investigation timelines to eight months and streamlining procedures. Libertarian President Javier Milei has made shrinking the state's role in the economy a key part of his agenda to pull Argentina out of economic crisis and bring down sky-high inflation. "With this reform, competition is encouraged, the original function of anti-dumping duties is restored and a more transparent and balanced foreign trade is sought," Caputo said. Sign up here. https://www.reuters.com/markets/argentina-reform-anti-dumping-system-boost-competition-2025-01-16/