2025-01-15 22:02
Jan 15 (Reuters) - Flowco Holdings has raised $427.2 million after pricing its U.S. initial public offering above its targeted range, the oilfield services provider said on Wednesday. Flowco priced its offering of 17.8 million shares at $24 each. The company had marketed to list its shares in the range of $21 and $23. Strong equity markets, falling interest rates and hopes of a friendlier regulatory environment for deals under the incoming Trump administration have rejuvenated the U.S. IPO market. Donald Trump, who takes office as president on Monday, has also promised to maximize U.S. oil and natural gas production, which is already at record highs, in part by clearing away what he deems as unnecessary regulation and bureaucracy. Service providers such as Flowco stand to benefit from the increased investor optimism surrounding the sector. Venture Global, the second-largest U.S. liquefied natural gas producer, said earlier this week it was seeking to raise up to $2.30 billion, in what is likely to be the largest listing by an energy company in the U.S. in more than a decade. Houston, Texas-based Flowco specializes in services that help improve the rate of oil and gas extraction from wells. Its business is divided into two segments – production solutions and natural gas technologies. The company was created last year by a three-way merger between firms specializing in services that help improve the rate of oil and gas extraction from wells. In June, its owners Global Energy Capital and White Deer Energy struck a deal to combine Flowco Production Solutions, Estis Compression and Flogistix. Flowco shares are expected to start trading on the New York Stock Exchange on Thursday under the ticker symbol "FLOC". J.P. Morgan, Jefferies and Piper Sandler are the lead underwriters of the offering. Sign up here. https://www.reuters.com/markets/commodities/oilfield-services-provider-flowco-raises-427-mln-us-ipo-2025-01-15/
2025-01-15 21:50
Jan 16 (Reuters) - A look at the day ahead in Asian markets. At last, some breathing room for investors after U.S. and UK inflation figures on Wednesday eased the vice-like grip that the soaring dollar and global bond yields had increasingly been exerting over markets. It is too early to say this marks a turning point, but fixed income and emerging markets have been beaten down so much lately that they were primed for a 'good news' reversal. Upbeat U.S. bank earnings and, on the margins, the ceasefire between Israel and Hamas will also help support market sentiment on Thursday. But it's the UK and especially the U.S. inflation news that will drive markets more, and the rapid slide in bond yields and jump in stocks should pave the way for a positive day in Asia on Thursday. These numbers may not ultimately alter the Fed's direction or even pace of rate cuts this year. But they do take the heat off policymakers and buy them more time to assess their next steps. For investors, they were instant triggers to reverse some of the bond selling that had snowballed in recent weeks and which had started to bleed into equity markets. Yields across the U.S. Treasury curve posted their biggest one-day declines since Nov. 25, and rates traders brought forward the next expected Fed rate cut to June from September. Curiously, however, the impact on the dollar was muted. It fell sharply against the yen, but barely budged against the euro. Perhaps country-specific factors are playing a greater role in setting exchange rates right now rather than solely U.S. yields and rate expectations. That may be the case in Asia, where policy and politics are spicing up local markets. Indonesia's rupiah sank to its lowest in more than six months and the country's stocks leaped on Wednesday after the central bank delivered a surprise rate cut. Not one of the 30 analysts polled by Reuters expected the move. The Bank of Korea delivers its latest decision on Thursday, and it could not be at a more volatile time for the country, after impeached President Yoon Suk Yeol was arrested on Wednesday and questioned for hours by investigators in relation to a criminal insurrection probe. The BoK is expected to cut its base rate by 25 basis points to 2.75%, according to 27 out of 34 economists polled by Reuters, with the remaining seven forecasting no change. Given the tense domestic political situation and in light of the cooler-than-expected U.S. inflation data, could the BoK surprise markets with a 50 bps cut to try and boost growth and loosen financial conditions? Bank Indonesia's shock move shows that even unanimous consensus forecasts are not always the one-way bet they might seem. Here are key developments that could provide more direction to markets on Thursday: - South Korea interest rate decision - South Korea fallout from President Yoon's arrest - Australia unemployment (December) Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-graphic-2025-01-15/
2025-01-15 21:00
Separatist leader says Russian gas supplies to resume soon Says more negotiations required Moldovan PM says Moscow trying to provoke conflict CHISINAU, Jan 15 (Reuters) - Moldova's breakaway Transdniestria region expects to receive Russian gas again soon to meet its needs, its leader Vadim Krasnoselsky said on Wednesday, two weeks into crippling power cuts in the Russian-backed enclave. The prime minister of Moldova's pro-European central government said Russia was intent on bringing to power a Moscow-friendly government in the country. He said Moscow would probably provide volumes of gas too small to ensure electricity supplies to both rebel and government-held areas. Tens of thousands of people in Transdniestria have been without gas or winter heating since Jan. 1, when Russia's Gazprom (GAZP.MM) , opens new tab suspended gas exports to the region, citing an unpaid Moldovan debt of $709 million that Chisinau does not recognise as valid. Moscow blames the suspension of gas supplies on pro-Western Moldova and Ukraine, which refused to extend a five-year gas transit deal that expired on Dec. 31 on the grounds that the proceeds help fund Russia's invasion. "I hope that as a result of these negotiations (in Moscow), in the near future gas will be supplied to Transdniestria for electricity generation and to our citizens," Krasnoselsky told a news briefing in Tiraspol, the main city in the rebel area. "The gas will be supplied as humanitarian gas in the volume necessary for the population of Transdniestria, for heat and power generation and for industrial enterprises of Transdniestria," he added. Russia has not yet commented on the issue. Krasnoselsky said there would be further negotiations to determine the start date for deliveries and their route. Transdniestria, a tiny pro-Russian and mainly Russian-speaking separatist region along the Dniester River and the border with Ukraine, received about 2 billion cubic meters of Russian gas a year via Ukraine, using the fuel to heat homes and generate electricity, which it sold to the rest of Moldova. 'GAMES AND TRICKS' Moldova's authorities have said that despite a valid contract and the option of an alternative transit route, Gazprom is refusing to supply gas in order to destabilise its government ahead of this year's parliamentary elections. The government has sourced alternative supplies from Europe and has offered to help Transdniestria buy gas, but the offer was rejected by the separatist leaders there, who blame Moldova for the crisis. "The Kremlin regime has held the people there hostage, mercilessly, in the cold and darkness, because it wants to bring to power (in Moldova) pro-Russian groups that will plunge our country into conflict and destabilize public order," Moldova Prime Minister Dorin Recean told reporters in Chisinau. Recean said it was clear volumes of gas would be insufficient to generate power for government-controlled areas of Moldova "and will push us towards a conflict. "That is what the Kremlin wants. Chisinau will not accept these games and tricks." Recean said his government was taking legal advice on bringing under Moldovan control the Moldovagaz state gas company, which is 50% owned by Gazprom, and a thermal plant in Transdniestria which generates power for both parts of the country. He described both as "assets that were seized by Russia". Sign up here. https://www.reuters.com/world/europe/moldovas-separatist-enclave-hopes-russia-will-resume-gas-supplies-soon-2025-01-15/
2025-01-15 21:00
US consumer prices rise slightly above expectations in Dec JPMorgan, Wells Fargo, Goldman Sachs post higher Q4 profits Israel, Hamas reach peace deal to end Gaza war, officials say Indexes up: Dow 1.65%, S&P 500 1.83%, Nasdaq 2.45% NEW YORK, Jan 15 (Reuters) - U.S. stocks surged on Wednesday, with all three major indexes registering their biggest daily percentage gains in more than two months, as lower-than-expected December core inflation data and solid earnings from major U.S. banks fueled a rally. The Labor Department said the consumer price index (CPI) increased the most in nine months as energy costs rose, although a measure of underlying inflation pressures subsided. Data on Tuesday showed the producer price index (PPI) rose less than expected. "We've gotten so puckered over the fact that rates might be going up and this is going to be a problem and the UK won't be able to borrow money and oh, our deficit, and so everyone was kind of wound up," said Stephen Massocca, senior vice president at Wedbush Securities in San Francisco. "The CPI number and the PPI number - they're not super cool, but they're certainly not hot - and certainly it leads one to believe that the embers of inflation are dying." The Dow Jones Industrial Average (.DJI) , opens new tab rose 703.27 points, or 1.65%, to 43,221.55, the S&P 500 (.SPX) , opens new tab gained 107.00 points, or 1.83%, at 5,949.91 and the Nasdaq Composite (.IXIC) , opens new tab advanced 466.84 points, or 2.45%, to 19,511.23. All three major indexes scored their biggest daily percentage gains since Nov. 6, as did the domestically focused Russell 2000 (.RUT) , opens new tab index of small-cap stocks, which climbed 1.99%. Stocks have struggled following a post-U.S. election rally, with the S&P 500 falling in four of the previous five weeks. A resilient economy, nagging inflation and comments from Federal Reserve policymakers have fanned worries about the central bank being less aggressive in cutting interest rates than previously anticipated. Concerns linger about potential tariffs from President-elect Donald Trump's incoming administration that would further stoke inflation. But expectations for more Fed rate cuts this year increased following the CPI data, along with odds for a cut of at least 25 basis points at the June Fed meeting. Fed officials said on Wednesday the recent inflation data was helpful but noted uncertainty in the coming months as they await policies from the incoming Trump administration. The Fed's Beige Book showed economic activity increased slightly to moderately in late November and December, with employment ticking up and prices rising moderately amid concerns about the potential impact of Trump policies. The benchmark Treasury note yield tumbled from a 14-month high of 4.809% hit earlier this week and was last down 13.7 basis points at 4.651%. Also providing support were earnings from large banks, with JPMorgan (JPM.N) , opens new tab shares rising 1.97% on a record annual profit as markets rebounded in the fourth quarter. Wells Fargo (WFC.N) , opens new tab jumped 6.69% after its fourth-quarter profit beat Street expectations as a surge in dealmaking activity boosted its investment banking business. Goldman Sachs (GS.N) , opens new tab, up 6.02%, was the biggest boost to the Dow Industrials as it provided about 214 points to the upside, following its best quarterly profit since the third quarter of 2021. Citigroup shot up 6.49% after it swung to a profit in the fourth quarter. The S&P 500 bank index rallied 3.37%. Relief also came from a long-awaited phased deal to end the war in Gaza after 15 months of conflict. Advancing issues outnumbered decliners by a 5.49-to-1 ratio on the NYSE, and by a 3.19-to-1 ratio on the Nasdaq. The S&P 500 posted 20 new 52-week highs and nine new lows, while the Nasdaq Composite recorded 60 new highs and 92 new lows. Volume on U.S. exchanges was 14.26 billion shares, compared with the 15.81 billion average for the full session over the last 20 trading days. Sign up here. https://www.reuters.com/markets/us/futures-flat-caution-ahead-bank-earnings-key-inflation-data-2025-01-15/
2025-01-15 20:57
Jan 15 (Reuters) - Chevron (CVX.N) , opens new tab said on Wednesday it did not find commercial hydrocarbon reserves in an exploration well in Namibia's Orange Basin. The U.S. oil producer said the well called Kapana 1X in the PEL90 block provided valuable information about the basin and the company anticipated it would explore further in Namibia. Oil companies have flocked to the African country, with recent offshore finds ranking among the largest this century, though exploration has been dealt some blows. Shell said last week that it will write down about $400 million over an oil discovery offshore Namibia that it deemed commercially unviable. Namibia's national oil company said in April it signed a development deal with Chevron to have the company take an 80% operating working interest in an offshore block in the Walvis Basin. Sign up here. https://www.reuters.com/business/energy/chevron-says-no-commercial-oil-gas-found-namibia-exploration-well-2025-01-15/
2025-01-15 20:40
Treasuries hold onto Wednesday's inflation data inspired gains Richemont leads European stocks higher after results Asian stocks surge, boosted by tech sector after TSMC results Yen hits strongest in a month on growing rate hike wagers US earnings kick off with strong showing by banks SINGAPORE/LONDON, Jan 16 (Reuters) - Stocks surged on Thursday, extending momentum from the previous session when data showed an easing in core U.S. inflation that raised expectations for Federal Reserve cuts and sent global bond yields lower. Strong results from blue-chip companies across the world added fuel to the equities rally, and supported risk sentiment across a range of asset classes. Richemont (CFR.S) , opens new tab, the owner of Cartier jewellery, jumped 17%, putting it on track for its best day in 17 years, after its results exceeded analyst expectations, driving up the wider European luxury sector. (.STXLUXP) , opens new tab Earlier in the day, chipmaker Taiwan Semiconductor Manufacturing Co (2330.TW) , opens new tab, reported record quarterly profit - albeit in line with expectations - and rose 3.7%, offering support to other chip firms. (.SX8P) , opens new tab Overnight JPMorgan (JPM.N) , opens new tab, BlackRock (BLK.N) , opens new tab and Goldman Sachs (GS.N) , opens new tab delivered robust earnings. That all left Europe's STOXX 600 up 0.65% (.STOXX) , opens new tab at its highest in a month and within 2% of September's record. Asia ex-Japan shares (..MIAPJ0000PUS) , opens new tab gained 1.33%, while on Wall Street on Wednesday all three major indexes registered their biggest daily percentage gains since Nov. 6 - the day after the U.S. presidential election. INFLATION RELIEF Earnings aside, the rally in risk assets stemmed from Wednesday's benign U.S. inflation report that showed the consumer price index rose in line with expectations at an annual rate of 2.9% in December, while core inflation, which excludes food and energy prices, rose by 3.2%, below forecasts for 3.3%. The inflation report led traders to price in a 50% chance of a second 25 basis point Fed rate cut this year. Before the data, expectations had mounted the Fed might not cut again this year. Markets gave the data greater credence because other releases painted a similar picture. Numbers released on Tuesday showed U.S. producer prices had increased moderately in December. Wednesday's softer British inflation print also offered support. "Wherever you were around the world yesterday, I’m sure you could hear the huge collective sigh of relief from financial markets as downside inflation surprises from the U.S. and the U.K. allowed us to step back from the recent one-way trade on inflation and bond yields," said Jim Reid global head of macro research at Deutsche Bank in a morning note to clients. The benchmark 10-year Treasury yield fell 13.5 basis points in the aftermath of the data, its biggest daily fall since mid November. It was steady on Thursday at 4.66%, having nudged above 4.8% at the start of the week. Moves were even larger in Britain, whose government bonds have been some of the biggest victims of the recent global selloff. The 10-year gilt yield fell 15 bps Wednesday, its most since late 2023. YEN AND POUND The data also offered some support to other currencies against the dollar. On Thursday, Japan's yen hit its strongest in nearly a month on the dollar and euro after comments from Governor Kazuo Ueda prompted traders to price in a more than 70% chance the Bank of Japan will raise interest rates next week. The dollar was last down 0.4% on the Japanese currency at 155.8 yen. The euro eased by a similar amount at 160. , Other currencies were quiet, but the pound dropped 0.3% on both the dollar and euro after British GDP rose just 0.1% in December, below expectations. , In energy markets, Brent crude futures slipped 0.2% to $81.88 a barrel, as investors processed the complex ceasefire accord between Israel and militant group Hamas. Spot gold hit a one month high of $2,704.9 per ounce after the shift in interest rate expectations. Sign up here. https://www.reuters.com/markets/global-markets-wrapup-1-2025-01-15/
