2024-12-12 05:04

Dec 12 (Reuters) - The U.S. solar industry unveiled its lobbying strategy for the incoming Trump administration on Thursday, promoting itself as a domestic jobs engine that can help meet soaring power demand, without referencing its role in combating climate change. The policy agenda marks a stark shift in tone for the solar sector, which is a major beneficiary of subsidies contained in outgoing President Joe Biden's landmark 2022 climate change law, the Inflation Reduction Act (IRA). President-elect Donald Trump has vowed to rescind the law, something that would require action by Congress. The Solar Energy Industries Association (SEIA), the top U.S. solar trade group, listed its top 10 priorities for the first 100 days of Trump's administration and described solar energy as key to American energy security. It called on the government to support policies to expand domestic solar manufacturing and reduce dependence on China, and urged looser restrictions on infrastructure investment and grid connections for solar projects. It also asked the incoming administration to keep taxes low and support consumer energy choice. "Solar is critical to meeting America's growing need for electricity and providing power for manufacturing, data centers, cryptocurrency, and AI," SEIA CEO Abigail Ross Hopper said. "This is a roadmap for the Trump administration and Congress to capitalize on strong federal solar and storage policies and achieve their vision of a dominant American energy sector." The document did not mention climate change or the IRA. The SEIA did not respond to a request from Reuters for comment on the report. In the policy agenda it released in 2020 ahead of Biden's inauguration, SEIA advocated for a price on carbon and mentioned climate change several times. Biden's administration viewed solar energy as critical to decarbonizing the power sector to fight global warming. SEIA also did not directly mention tariffs, something it had asked the Biden administration to reduce. The trade group has long opposed trade tariffs that raise costs for solar installers, but Trump has pledged to use them aggressively as part of his economic agenda. SEIA noted in a statement that U.S. solar capacity grew 128% during Trump's first term in office. Some priorities have not changed, including calls for increased solar development on public lands, improved grid access and more support for domestic manufacturing. Sign up here. https://www.reuters.com/business/energy/us-solar-industry-downplays-climate-strategy-trump-era-2024-12-12/

2024-12-12 04:47

HONG KONG, Dec 12 (Reuters) - The yuan came under renewed pressure against the dollar on Thursday, giving up some initial gains as markets reflected on a Reuters report that China may weaken the yuan to weather the risk of U.S. trade tariffs. At 0400 GMT, the yuan was 0.03% lower at 7.2637 to the dollar after trading in a range of 7.2565 to 7.2677. Reuters reported on Wednesday, citing sources, that China's top leaders and policymakers are considering allowing the yuan to weaken in 2025 as they brace for higher U.S. tariffs when Donald Trump returns to the White House. The yuan and currencies across Asia fell on the dollar following the news on Wednesday. Adding to the pressure on the currency, Chinese long-term yields fell to record lows on monetary easing expectations, widening the yield disadvantage against the U.S. to the biggest level in 22 years. Prior to the market opening, the People's Bank of China set the midpoint rate , around which the yuan is allowed to trade in a 2% band, at 7.1854 per dollar, little changed from the previous session and 584 pips firmer than a Reuters' estimate. Currency traders are also waiting for the outcome of a key economic policy meeting for a clearer picture of monetary and fiscal easing plans next year. In an article that followed the Reuters report, Financial News, the PBOC's publication, said the foundation for a "basically stable" yuan exchange rate remains "solid," and that the currency is likely to stabilise and strengthen towards the end of this year. That helped the yuan claw back some of its losses. HSBC analysts said markets should wait for a statement from the Central Economic Work Conference, an annual meeting of Communist Party leaders, to confirm whether there is a shift in Beijing's yuan stance. Rong Ren Goh, a portfolio manager in the fixed income team at Eastspring Investments said "it is unsurprising that Chinese authorities are considering the option of allowing currency weakening," as a tool to offset the impact of tariffs. However, he expects a controlled, gradual adjustment of the yuan rather than a sharp, unchecked depreciation that could destabilise financial markets. The Chinese currency has depreciated for 10 straight weeks, weighed by U.S. President-elect Trump's tariff threats and monetary policy divergence between China and the United States. The offshore yuan traded at 7.2661 yuan per dollar , up about 0.19% in Asian trade. Sign up here. https://www.reuters.com/markets/currencies/yuan-under-pressure-after-report-china-is-considering-weaker-currency-2024-12-12/

2024-12-12 04:43

MUMBAI, Dec 12 (Reuters) - The Indian rupee declined to its all-time low on Thursday, pressured by dollar bids in the non-deliverable forwards (NDF) market and from importers while intervention by the central bank kept a lid on losses, traders said. The rupee weakened to a low of 84.88 to the U.S. dollar, down 0.04% on the day. The currency was quoted at 84.8750 at 10:00 a.m. IST. State-run banks were spotted offering dollars, most likely on behalf of the Reserve Bank of India (RBI), traders said. Heightened dollar demand in the NDF market alongside strong dollar buying by local importers, including oil companies, have weighed on the rupee in recent sessions, a trader at a state-run bank said. The prospect of a weaker yuan presents another headwind to Asian currencies after Reuters reported on Wednesday that China is considering allowing a weaker yuan to weather the tariff risks under the incoming Donald Trump administration. On the day, Asian currencies were mixed while the offshore Chinese yuan rose 0.1% to 7.26 after declining to a low of 7.29 in the previous session. The dollar index was steady at 106.5 after U.S. inflation data prompted investors to nearly fully price in a December rate cut by the Federal Reserve. The heightened expectations did little to blunt the dollar's stride. "We look for another 25bp Fed cut next week, but new Fed forecasts should show a shallower series of cuts in 2025," ING Bank said in a note. A shallower easing cycle by the Fed is likely to support the dollar. Dollar-rupee forward premiums rose on the back of heightened expectations of a U.S. rate cut, with the 1-year implied yield up 7 basis points at 2.22%, its highest in December so far. Sign up here. https://www.reuters.com/markets/currencies/rupee-declines-lifetime-low-rbi-intervention-caps-losses-2024-12-12/

2024-12-12 03:50

Dec 11 (Reuters) - Some of the biggest investors in ReNew Energy Global (RNW.O) , opens new tab have offered to take the company private, filings to the U.S. Securities And Exchange Commission (SEC) show, in a deal that values the clean power generator at $2.82 billion, according to Reuters calculations. Major shareholders Canada Pension Plan Investment Board, UAE-based Masdar, ReNew Chairman Sumant Sinha and a unit of the Abu Dhabi Investment Authority have offered to buy shares in India's second largest clean energy generator at $7.07 each. The consortium has collective voting rights of 64% in ReNew, which is India's second biggest renewable energy firm after Adani Green. The offer represents an 11.5% premium to ReNew's closing price of $6.34 on Nasdaq on Dec. 10. The valuation is based on a total of 398.61 million diluted shares outstanding as of Aug. 15, according to the company's website. Shares of ReNew closed 17.7% higher at $7.46 on the Nasdaq on Wednesday, 5.5% above the offer price. ReNew operates 10.3 gigawatts (GW) of solar, wind, hydro and hybrid projects across India. Its stock had lost nearly 18% of its value this year before the offer was made. In a letter to the lead independent director of ReNew's board attached to the SEC filings, the consortium said the proposal would provide the company's shareholders with "immediate liquidity not available in the public markets". CreditSights, a unit of Fitch Group, noted ReNew's delisting from NASDAQ would lead to poorer disclosures and leave it unable to raise funds from the U.S. public equity markets. But it said the move would lower compliance and regulatory costs for the company's ambitious expansion plans. "It will ... introduce a new reputed UAE state-owned shareholder Masdar that could open up more funding channels in the UAE/Middle East," CreditSights said in a note, adding that ReNew's equity valuations had been weak for a prolonged period. Masdar said in a statement the proposal "would provide capital investment to support the country's energy transition". The offer, if approved by the board, would mean an exit for Japan's top utility JERA, which owned 11.7% of Class A shares in the company, according to ReNew's annual filing in July. It was not immediately clear if JERA still held a stake of that size in the company. Goldman Sachs, one of ReNew's earliest investors, sold its entire stake after the energy company went public in 2021. Sign up here. https://www.reuters.com/markets/deals/top-shareholders-offer-take-indias-renew-energy-private-2024-12-11/

2024-12-12 02:42

Jobless rate stood at 3.9% in Nov, vs forecast 4.2% RBA had expected it to rise to 4.3% by year end Employment rose 35,600, above forecast 25,000 Data prompts markets to pare back bets of Feb rate cut SYDNEY, Dec 12 (Reuters) - Australia's jobless rate posted a shock decline to an eight-month low in November, while employment extended its strong run, evidence of a far more resilient labour market than many had expected. The surprising strength prompted markets to scale back bets for an easing from the Reserve Bank of Australia in February, just days after the central bank unexpectedly turned dovish by opening the door to a rate cut. The Australian dollar rose 0.6% to $0.6409, while three-year bond futures fell 7 ticks to 96.192. Swaps now imply a 55% chance of a cut in February, compared with 68% before. Figures from the Australian Bureau of Statistics on Thursday showed the jobless rate dropped to 3.9% in November, the lowest since March, from 4.1% in October. Analysts had looked for a rise to 4.2%. The participation rate edged down to 67.0%, from 67.1%. Net employment rose by 35,600 in November from October, when it increased by a revised 12,200. That was above market forecasts for a 25,000 rise and driven by gains in full-time employment. "Softer economic data from the recent national accounts release raised the risk of a February cut, but this labour market result offsets that risk somewhat," said Adelaide Timbrell, a senior economist at ANZ. The RBA has held its policy steady for a year, judging the current cash rate of 4.35% - up from 0.1% during the pandemic - is restrictive enough to bring inflation to its target band of 2-3% while preserving employment gains. Governor Michele Bullock has said policymakers will be watching the jobs report, as well as readings on inflation and retail sales before it next meets in February. The dovish pivot came after data showed economic growth in the third quarter was surprisingly weak, defying expectations for a rebound. Wage growth has also underwhelmed, suggesting unemployment perhaps does not need to rise further to keep inflation anchored. The ABS said there was a higher-than-usual number of people moving into employment in November who were unemployed and waiting to start work the previous month. Unemployment also fell 27,000. The jobs report showed hours worked remained flat in November, while the underemployment rate fell 0.1 percentage points to 6.1%, the lowest since April 2023. Tapas Strickland, head of market economics at the National Australia Bank, said if the labour market starts to re-tighten and sustain the trend, it would pose a problem to the RBA's newfound degree of confidence in its forecasts. "There is one more employment print and the Q4 CPI ahead of the RBA’s February meeting," said Strickland. "While we expect Q4 CPI to be a little below the RBA's November forecast, that alone is unlikely to be enough to see the RBA cut in February given the labour market continues to suggest little urgency for the RBA to adjust policy settings." Sign up here. https://www.reuters.com/world/asia-pacific/australia-nov-jobless-rate-unexpectedly-drops-39-2024-12-12/

2024-12-12 01:45

S&P 500, Nasdaq gain; Dow drops Tesla shares hit record high Healthcare stocks tank after bipartisan bill Dow dips 0.22%, S&P 500 up 0.82%, Nasdaq up 1.77% NEW YORK, Dec 11 (Reuters) - Wall Street's benchmark S&P 500 index rose on Wednesday and a rally in tech stocks lifted the Nasdaq above the 20,000-point milestone for the first time, after a U.S. inflation report boosted expectations of a Federal Reserve interest rate cut. The Dow Jones Industrial Average dipped, dragged by health insurers as U.S. lawmakers introduced a bill seen as crimping their profits. Five of the 11 major S&P 500 sectors advanced, led by gains in communication services, technology and consumer discretionary services. A Labor Department report showed U.S. consumer prices in November increased by the most in seven months, though broadly in line with market expectations. The Dow Jones Industrial Average (.DJI) , opens new tab fell 99.27 points, or 0.22%, to 44,148.56, the S&P 500 (.SPX) , opens new tab gained 49.28 points, or 0.82%, to 6,084.19 and the Nasdaq Composite (.IXIC) , opens new tab gained 347.65 points, or 1.77%, to 20,034.89. "Nasdaq is rallying on the prospect of a rate cut next week and has room to move higher," said Peter Cardillo, chief market economist at Spartan Capital Securities. Markets are pricing in more than a 96% chance the Fed will cut rates by 25 basis points next week, up from an 86% chance before the data, according to CME's FedWatch Tool. Bets had risen following Friday's employment report, which showed an uptick in unemployment alongside a surge in job growth. The yield on benchmark U.S. 10-year notes rose 5.2 basis points to 4.271%. "The equity market seems to be breathing a sigh of relief that this is another steady-as-she-goes report," said Wasif Latif, chief investment officer at Sarmaya Partners in New Jersey. "There's no surprises. It seems the equity market was braced for a higher than expected number." Tesla (TSLA.O) , opens new tab shares climbed nearly 6% to a record high as the electric vehicle maker extended a rally in the wake of the U.S. presidential election. Nvidia (NVDA.O) , opens new tab and other megacap growth stocks, including Alphabet (GOOGL.O) , opens new tab and Amazon (AMZN.O) , opens new tab, also finished higher, adding between 1.2% and 5.5%. Apple (AAPL.O) , opens new tab edged down 0.5% Pharmacy benefit managers, including Cigna (CI.N) , opens new tab, CVS Health (CVS.N) , opens new tab, and UnitedHealth Group (UNH.N) , opens new tab, lost ground after a bipartisan group of lawmakers introduced a bill that would force health insurers or drug middlemen to divest their pharmacy businesses. GameStop (GME.N) , opens new tab gained 7.5% after the videogame retailer reported a profit for the third quarter on cost-saving efforts. Broadcom (AVGO.O) , opens new tab jumped 6.6% following a report that Apple (AAPL.O) , opens new tab is working with the company to develop its first server chip specially designed for artificial intelligence. Macy's (M.N) , opens new tab shed 0.8% after the department-store bellwether cut its annual profit forecast as persistent weakness in demand clouded its expectations for the holiday shopping season. Advancing issues outnumbered decliners by a 1.27-to-1 ratio on the NYSE. On the Nasdaq, 2,287 stocks rose and 2,029 fell as advancing issues outnumbered decliners by a 1.13-to-1 ratio. The S&P 500 posted 22 new 52-week highs and 6 new lows while the Nasdaq Composite recorded 127 new highs and 118 new lows. About 14.25 billion shares were traded across U.S. exchanges, compared with the 14.35 billion average for the last 20 sessions. Sign up here. https://www.reuters.com/markets/us/futures-steady-lead-up-crucial-inflation-reading-2024-12-11/