2024-11-25 21:17
Nov 25 (Reuters) - Moldova's energy minister held talks with the head of Russian gas giant Gazprom (GAZP.MM) , opens new tab on Monday to discuss alternative routes to supply Moldova's breakaway region of Transdniestria with Russian gas if transit through Ukraine stops, Moldova said. The gas transit agreement between Ukraine and Russia ends on Dec. 31 and Ukraine has said it will not extend it. The economy of the Russian-backed Transdniestria region depends heavily on Russian natural gas supplied via Ukraine. "They (energy minister Victor Parlicov and CEO Alexei Miller) focused on alternative routes for gas supplies to the Transdniestrian region of Moldova, if transit through Ukraine is disrupted," Moldova's energy ministry said in a statement after the talks in St Petersburg. Transdniestria has a large power plant fueled by Russian gas that supplies the unrecognised breakaway region and most of the government-controlled part of the country with electricity. It is a vital source of revenue for Transdniestria's economy. Under pro-European President Maia Sandu, Moldova has cut its dependence on Russian gas since 2022, turning to European suppliers, while Gazprom has continued to supply Transdniestria for free in practice. The talks marked a rare official meeting between Russia and Moldova. Relations between the two countries have frayed since Russia's 2022 invasion of Ukraine, which Moldova has strongly condemned. Parlicov told Reuters that the talks were critical to ensuring stability in Moldova and the region. "We are not waiting until the last minute to address these challenges and are taking calculated steps to manage any risks. Engaging in dialogue with Gazprom is a necessary part of assessing the state of play and identifying workable solutions," he said. "As part of this effort, I have met Gazprom as the deadline for reserving capacity on an alternative route approaches." If Ukraine goes through with its plan to end Russian transit next year, an alternative route for gas supplies to Transdniestria could pass through the TurkStream pipeline to Turkey and then through Bulgaria and Romania. A Gazprom statement said the two sides "agreed to continue discussing options for organising deliveries of Russian natural gas to Moldova from Jan. 1, 2025". Parlicov said Moldovagaz, a Gazprom subsidiary which organises gas distribution in Moldova, had proactively contacted Gazprom to explore options for deliveries via an alternative route. "While we have not yet received a response, we remain fully engaged in exploring all viable options to safeguard Moldova’s energy needs," Parlicov said. "The destabilisation of Moldova's Transdniestria region serves no one's interests — not Moldova's, not Ukraine's, and certainly not the European Union's," he said. Also discussed were what Gazprom described as Moldova's debts for previous deliveries and the composition of the board of Moldovagaz, the energy ministry said. Sign up here. https://www.reuters.com/world/europe/moldova-russia-hold-talks-transdniestria-gas-supply-amid-ukraine-transit-2024-11-25/
2024-11-25 21:00
Barclays raises full-year S&P 500 forecast Bond yields drop as Bessent's move seen easing fiscal concerns Macy's slides after delaying Q3 report on accounting issue Indexes up; Dow 0.99%, S&P 500 0.3%, Nasdaq 0.27% Nov 25 (Reuters) - Wall Street's main indexes ended higher on Monday, with the small-cap Russell 2000 index hitting an all-time high after Scott Bessent's nomination as U.S. Treasury secretary helped push bond yields lower. Focus also turned to talks of a ceasefire deal between Israel and Lebanon, which pushed oil prices lower, dragging the Energy index (.SPNY) , opens new tab 2% lower. President-elect Donald Trump ended weeks of speculation when he named his choice late on Friday, with some investment strategists saying Bessent could take measures to restrain further government borrowing, even as he follows through on fiscal and trade campaign pledges. The nomination of Bessent has eased some of the fiscal concerns about possible new tariffs, which had pushed bond yields higher ahead of the election. "This time, focus is on tariff policy - especially now that the choice of Scott Bessent as Treasury secretary seems to have allayed major fiscal concerns," said James Reilly, senior market economist at market desk Capital Economics. According to preliminary data, the S&P 500 (.SPX) , opens new tab gained 17.81 points, or 0.30%, to end at 5,987.15 points, while the Nasdaq Composite (.IXIC) , opens new tab gained 51.50 points, or 0.27%, to 19,055.15. The Dow Jones Industrial Average (.DJI) , opens new tab rose 439.02 points, or 0.99%, to 44,735.53. Advancing issues outnumbered decliners by a 3.01-to-1 ratio on the NYSE. There were 836 new highs and 40 new lows on the NYSE. The small-cap index (.RUT) , opens new tab hit an all-time intraday high of 2,466.49, eclipsing the record level it touched three years ago, as Treasury yields dropped sharply, with the 30-year bond leading the yield declines across the board. "Areas that were lagging for most of this year are beginning to outperform, such as the small-cap and the mid-cap stocks, not just due to Trump, but also due to the Federal Reserve cutting rates," said Adam Sarhan, chief executive of 50 Park Investments in New York. Expectations that Trump, along with a Republican Congress, can make good on his promise of business-friendly policies have been the latest tailwinds for small-cap companies. They have been in the spotlight since the U.S. Federal Reserve commenced its monetary policy easing cycle in September. Lower yields helped the rate-sensitive Real Estate sector (.SPLRCR) , opens new tab rise, while the Housing index (.HGX) , opens new tab also surged 4.5%. Barclays raised its full-year 2025 forecast for the S&P 500, while Deutsche Bank set its target at 7,000 points by the end of 2025. Concerns remain, however, that inflationary pressures could spike and slow the pace of the Fed's policy easing. Investors have recently swung between expectations of a pause versus a further cut in interest rates at the Fed's December meeting. The CME Group's FedWatch Tool shows a 56.2% probability the central bank will deliver another 25 basis-point cut. Consumer Discretionary stocks led sectoral gains, aided by Amazon.com's (AMZN.O) , opens new tab 2.2% rise. The Personal Consumption Expenditure report, the central bank's preferred inflation gauge, will be on investors' radar later this week, which includes the U.S. Thanksgiving holiday. Macy's (M.N) , opens new tab fell 2.2% after the department-store operator delayed the publication of its third-quarter results due to an accounting issue. Bath & Body Works (BBWI.N) , opens new tab raised its forecast for full-year adjusted profit, sending the retailer's shares up 16.5%. The S&P 500 posted 106 new 52-week highs and no new lows while the Nasdaq Composite recorded 352 new highs and 66 new lows. Volume on U.S. exchanges was 16.69 billion shares, compared with the 14.93 billion average for the full session over the last 20 trading days. Sign up here. https://www.reuters.com/markets/us/dow-futures-hit-all-time-high-markets-laud-trumps-treasury-pick-2024-11-25/
2024-11-25 20:58
Loonie trades in a range of 1.3928 to 1.4007 Price of U.S. oil settles 3.2% lower 10-year yield falls 11.1 basis points TORONTO, Nov 25 (Reuters) - The Canadian dollar steadied against its U.S. counterpart on Monday as the bond market's enthusiasm about the choice of U.S. Treasury secretary offset a drop in oil prices and caution ahead of comments by a Bank of Canada policymaker. The loonie was trading nearly unchanged at 1.3978 per U.S. dollar, or 71.54 U.S. cents, after moving in a range of 1.3928 to 1.4007. Last week, the currency rallied 0.8%, its biggest weekly gain since August. "There are some factors netting each other out," said Darren Richardson, chief operating officer at Richardson International Currency Exchange Inc. U.S. Treasury yields declined sharply and the U.S. dollar (.DXY) , opens new tab gave back some recent gains against a basket of major currencies as investors bet that the nomination of Scott Bessent as U.S. Treasury secretary would lead to a more moderate than feared U.S. fiscal trajectory. The price of oil , one of Canada's major exports, settled 3.2% lower after multiple reports that Israel and Lebanon had agreed to the terms of a deal to end the Israel-Hezbollah conflict. Bank of Canada Deputy Governor Rhys Mendes is due to speak on Tuesday on monetary policy, the last scheduled appearance by a BoC policymaker before the Dec. 11 interest rate decision. "Any information will be dissected by the market," Richardson said, adding that hotter-than-expected Canadian inflation data last week has cooled expectations for another outsized interest rate cut from the central bank next month. Still, speculators have raised their bearish bets on the Canadian dollar to the highest level since July, data from the U.S. Commodity Futures Trading Commission showed. As of Nov. 19, net short positions had edged up to 183,566 contracts from 182,389 in the prior week. Canadian bond yields tracked U.S. Treasury yields lower. The 10-year was down 11.1 basis points at 3.316%. Sign up here. https://www.reuters.com/markets/currencies/canadian-dollar-steadies-bond-market-rallies-oil-tumbles-2024-11-25/
2024-11-25 20:29
WASHINGTON, Nov 25 (Reuters) - Tesla (TSLA.O) , opens new tab generated nearly 34 million metric tons of greenhouse gas credits in the 2023 model year by selling electric vehicles, as the auto industry racked up significant credit deficits in the face of more stringent emissions standards. In a report first seen by Reuters, the Environmental Protection Agency said Monday new vehicle fuel economy increased by 1.1 miles (1.8 km) per gallon in 2023, reaching a record high 27.1 mpg (43.6 kpg). The EPA said fleetwide fuel economy is preliminarily projected to rise to 28 mpg (45.1 kpg)in the 2024 model year. The industry as a whole generated nearly 11 million metric tons, or megagrams, of greenhouse gas emission credit deficits, led by General Motors, which posted a 17.8 million-metric ton deficit. GM purchased about 44 million credits in 2023, the EPA report said, while Tesla sold about 34 million, the largest of all transactions. Excluding Tesla, automakers generated a deficit of 43.5 million credits in 2023. By contrast in 2022, the industry earned a total of 3 million credits, led by Tesla's 19.1 million credits. EPA said the industry still has a total surplus of 123 million metric tons of credits to meet future requirements. GM also had to forfeit another 49 million metric tons of credits as part of a settlement in July of an EPA investigation that found excess emissions from approximately 5.9 million GM vehicles. Reuters reported last week that President-elect Donald Trump's incoming administration plans to target federal regulations that aim to make automobiles more fuel-efficient and incentivize a shift toward electric vehicles, citing sources. In March, the EPA finalized new rules requiring automakers to cut emissions by 49% by 2032 over 2026 levels compared with 56% under the proposal last year after dramatically tightening 2024 through 2026 requirements. Stellantis had the lowest fuel economy of major automakers, followed by GM and Ford (F.N) , opens new tab, while Tesla is the most efficient followed by Kia (000270.KS) , opens new tab and Hyundai (005380.KS) , opens new tab. Last year, Reuters reported Stellantis and GM had paid a total of $363 million in civil penalties for failing to meet U.S. fuel economy requirements. Horsepower, vehicle weight and size all hit new records in 2023. Sedans and wagons sold fell to just 25% of vehicles sold in 2023, while SUVs rose to 58%. EPA said electric and plug-in electric production rose from 6.7% in 2022 to 11.5% in 2023 and projected it to reach 14.8% in 2024. Sign up here. https://www.reuters.com/sustainability/tesla-racked-up-greenhouse-emissions-credits-2023-other-automakers-lagged-2024-11-25/
2024-11-25 20:21
Nov 25 (Reuters) - Starbucks (SBUX.O) , opens new tab said the aftermath of a ransomware attack on a software supplier has been affecting its ability to pay baristas and manage their schedules, the company's spokesperson said on Monday. The coffee giant said that an outage at a third-party vendor has disrupted a back-end Starbucks process that enables employee scheduling and time tracking. The outage is not impacting its customer service, and the company was working to ensure its employees were fully paid for their hours worked with limited disruption or discrepancy, according to a Starbucks' spokesperson. UK-based Blue Yonder, which provides supply chain software to Starbucks and other retailers, according to the Wall Street Journal, said on Thursday that it has experienced disruptions due to a ransomware attack and it is working to fix the issue. Sign up here. https://www.reuters.com/business/retail-consumer/starbucks-faces-disruptions-following-ransomware-attack-software-supplier-2024-11-25/
2024-11-25 19:30
Azerbaijan sees oil output stable until 2030, minister says Azeri gas exports to Europe seen at 12.5 bcm/yr in 2024, 2025 BAKU, Nov 25 (Reuters) - OPEC+ may consider leaving its current oil output cuts in place from Jan. 1 at its next meeting on Sunday, Azerbaijan's Energy Minister Parviz Shahbazov told Reuters, as the group had already postponed hikes amid demand worries. The issue of continuing oil production cuts "could be raised during the meeting", Shahbazov also told Reuters in Baku. "OPEC+ could or couldn't discuss oil output rollover at its next meeting. It is difficult to prejudge," he added. Azerbaijan is a member of the OPEC+ group, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, which will meet on Dec. 1. OPEC+, which pumps around half the world's oil, has already delayed a plan to gradually lift production by several months this year because of falling prices, weak demand and rising production outside the group. Three OPEC+ sources familiar with the discussions told Reuters last week that it may push back output increases again when it meets on Dec. 1 due to weak global oil demand. Shahbazov said Azerbaijan, where oil output has declined after peaking in 2010, hopes to keep production stable until 2030. Azerbaijan's oil output has been declining for several years after the Azeri–Chirag–Gunashli complex of offshore oilfields operated by BP (BP.L) , opens new tab passed its peak of 50 million metric tons, or 1 million barrels per day, in 2010. Oil production for 2024 and 2025 is expected to be 29 million tons per year, or 580,000 bpd, Shahbazov added. Azerbaijan's gas exports to Europe are expected to average 12.5 billion cubic metres per year in 2024 and 2025, he said. The country expects its gas production to be 50 bcm this year, of which 25 bcm will be exported, the minister said. Next year, output is expected to rise to more than 50 bcm, with exports expected to stay stable. Earlier this year an Azeri presidential advisor told Reuters that the European Union and Ukraine had asked Azerbaijan to facilitate discussions with Russia regarding gas transit via Ukraine. Shahbazov refused to disclose the details of the consultations, but was sceptical about the prospects of the talks. "I don't really know what will happen," he said. The current five-year deal between Moscow and Kyiv on Russian gas exports via Ukraine to Europe expires at the end of the year and Kyiv has said it does not wish to extend it. This month, Slovak state-owned gas buyer SPP said European companies are not nearing a deal to replace Russian gas imports via Ukraine with supply from Azerbaijan. Speaking on the sidelines of the COP-29 climate talks in Baku, the minister also said the share of green power generation in Azerbaijan is projected to rise to 33% in 2027 from around 20% now. ($1 = 0.9471 euros) Sign up here. https://www.reuters.com/markets/commodities/azerbaijan-says-opec-might-consider-oil-cuts-rollover-dec-1-meeting-2024-11-25/
