2024-11-20 19:19

WASHINGTON, Nov 20 (Reuters) - The U.S. Department of Energy said on Wednesday it has awarded up to $2.2 billion to centers on the Gulf Coast and in the Midwest to develop hydrogen, an emerging source of energy that is expensive to produce using renewable power. WHY IT'S IMPORTANT Hydrogen backers, including the administration of President Joe Biden, believe that low-carbon hydrogen can fight climate change by fueling heavy industry such as aluminum, cement, steel and long-haul transportation. The vast majority of hydrogen is produced now with fossil fuels with unabated emissions, at a fraction of the cost of clean hydrogen. Backers hope clean hydrogen will be produced commercially in coming years with renewable energy, natural gas combined with carbon capture, and nuclear power. It is uncertain how hydrogen will fare , opens new tab under President-elect Donald Trump, but the awards came from the 2021 bipartisan infrastructure law. KEY QUOTE The move signals "our deep commitment to strengthening America's energy security and boosting our economic and global competitiveness while also tackling the climate crisis," said U.S. Energy Secretary Jennifer Granholm. BY THE NUMBERS The administration is awarding up to $7 billion in federal grants. Last year, two hub projects partially located in Pennsylvania got awards. The Gulf Coast hydrogen hub in Texas got up to $1.2 billion on Wednesday while the Midwest hub, with locations across the industrial corridor of Illinois, Indiana, Iowa and Michigan, is getting up to $1 billion. The Gulf hub proposes to produce clean hydrogen from water through electrolysis and from natural gas with emissions captured and stored underground. The Midwest hub aims to produce hydrogen with wind energy, natural gas with carbon capture, and nuclear. The plan will set the U.S. on a path to produce 50 million metric tons of clean hydrogen fuel by 2050, the Biden administration says. Sign up here. https://www.reuters.com/business/energy/us-awards-up-22-billion-speed-clean-hydrogen-development-2024-11-20/

2024-11-20 18:17

Canadian dollar falls 0.3% against the greenback Pulls back from a one-week high at 1.3948 Price of U.S. oil decreases 0.5% Bond yields rise across the curve TORONTO, Nov 20 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Wednesday, pulling back from an earlier one-week high, as the greenback notched broad-based gains and escalating Russia-Ukraine tensions led to investors turning more risk averse. The loonie was trading 0.3% lower at 1.3990 to the U.S. dollar, or 71.48 U.S. cents, after two consecutive days of gains. The currency touched its strongest intraday level since Nov. 13 at 1.3948. "USD-CAD resumed its uptrend after a 2-day pause," said Michael Goshko, senior market analyst at Convera Canada ULC. "The news Ukraine fired Storm Shadow missiles into Russia saw the market switch from risk-on to risk-off." Wall Street stocks fell after a report Ukraine fired long-range British Storm Shadow missiles into Russian territory and the safe-haven U.S. dollar (.DXY) , opens new tab climbed against a basket of major currencies, restarting its post-election rally. The price of oil , one of Canada's major exports, gave back its earlier gains to trade 0.5% lower at $69.06 a barrel. Investors have reduced bets on another outsized interest rate cut by the Bank of Canada after domestic data on Tuesday showed inflation climbing more than expected to 2%. Canadian retail sales data for September, due on Friday, could offer additional clues on the BoC policy outlook. Economists expect an increase of 0.4% from August. Canadian bond yields rose across the curve, tracking moves in U.S. Treasuries. The 10-year was up 1.5 basis points at 3.350%, after earlier touching its highest level since July 24 at 3.390%. C$5 billion of the 3.25% December 2034 bond was sold at auction at an average yield of 3.368%. Sign up here. https://www.reuters.com/markets/currencies/canadian-dollar-weakens-rising-global-risk-aversion-2024-11-20/

2024-11-20 16:50

NEW YORK, Nov 20 (Reuters) - An optimistic outlook on the U.S. economy is prompting U.S. bond giant PIMCO to favor stocks and some other risk assets, while seeking protection against inflation as the new U.S. government could implement policies that put upward pressure on prices. The bond-focused asset manager, with $2 trillion in assets, expects interest rate cuts by major central banks to boost both stocks and bonds going forward, with the two asset classes providing diversification by moving in opposite directions. However, it is also cautious on the trajectory of inflation, partly due to possible fiscal and trade policies under the impending new administration of U.S. President-elect Donald Trump. "Although restrictive central bank rates have brought inflation levels down close to targets, the long-term fiscal outlook in the U.S. includes continued high deficits, and geopolitical surprises could cause a spike in oil prices or snarl supply chains," portfolio managers Erin Browne and Emmanuel Sharef said in a note on Wednesday. "Trade policies, such as tariffs, and deglobalization trends could also pressure inflation higher," they said. The Federal Reserve is largely expected to cut interest rates for the third consecutive time at its next rate-setting meeting in December. At the same time, recent strong economic data as well as expectations of inflationary policies under Trump, such as tariffs and a clamp down on illegal immigration, have prompted traders to trim bets on how deeply the U.S. central bank will be able to ease rates. PIMCO expects a so-called soft landing for the U.S. economy - a scenario where inflation keeps declining without an economic contraction - but it also favors strategies such as equity options to mitigate geopolitical and monetary policy risks. It said it is overweight U.S. Treasury Inflation-Protected Securities (TIPS), which remained an "attractively priced hedge" against the risk of rising inflation. Sign up here. https://www.reuters.com/markets/rates-bonds/pimco-bullish-stocks-us-soft-landing-hopes-cautious-inflation-2024-11-20/

2024-11-20 16:37

FTX theft called one of the biggest US frauds Gary Wang pleaded guilty to fraud and conspiracy He testified for prosecution against Bankman-Fried NEW YORK, Nov 20 (Reuters) - Former cryptocurrency executive Gary Wang, who unwittingly wrote the computer code that helped FTX founder Sam Bankman-Fried steal about $8 billion from customers of the now-bankrupt exchange, was spared prison time by a judge on Wednesday. U.S. District Judge Lewis Kaplan announced he would be imposing no prison time at a hearing in federal court in Manhattan. The judge praised Wang's cooperation with prosecutors, and noted that he learned of Bankman-Fried's fraud later than others in his former boss's orbit. "You're entitled to a world of credit for facing up to your responsibility," Kaplan said. "The period of your culpability was in comparison to the periods of the culpability of the other defendants in this case extremely small." Wang, who is in his early 30s and had pleaded guilty to four felony counts of fraud and conspiracy, testified last year as a prosecution witness in the trial that led to Bankman-Fried's conviction on fraud and other charges. Wang and Bankman-Fried met at a summer math camp while they were both in high school. They reconnected while studying at the Massachusetts Institute of Technology, and eventually went into the cryptocurrency business together. Wang was one of several FTX executives who lived with Bankman-Fried in a $35 million penthouse in the Bahamas, where the exchange was based until its November 2022 bankruptcy. Bankman-Fried, 32, is serving a 25-year prison sentence imposed by Kaplan after a jury last year found him guilty of stealing customer money to prop up his Alameda Research hedge fund, make speculative venture investments, and contribute to U.S. political campaigns. The fallen wunderkind is appealing his conviction and sentence. Wang, FTX's former chief technology officer, told the jury in October 2023 that his former boss instructed him to adjust FTX's software code to give Alameda special privileges, enabling the fund to secretly withdraw billions of dollars from the exchange. His lawyers have acknowledged that he continued to work to maintain FTX's platform after learning of Bankman-Fried's fraud. Wang apologized on Wednesday. "I took the easy path, the cowardly path, instead of doing the right thing," Wang told the court. "I plan to spend the rest of my life doing everything I can to make amends." Prosecutors with the U.S. Attorney's Office in Manhattan had urged leniency, citing Wang's cooperation. They also said Wang had built software to help the U.S. government uncover fraud in the stock market, and is working on a similar tool for cryptocurrency markets. "Mr. Wang has this unique skill set where he can actually do something and deploy some of the skills he was using to perpetrate the fraud to productive ends," prosecutor Nicolas Roos said on Wednesday. Wang's lawyer Ilan Graff said Wang did not know at first that Bankman-Fried had instructed him to grant Alameda special privilege in order to steal funds. He said Wang did not profit from the fraud. "Gary did not knowingly create the so-called back doors that others exploited to steal customer money," Graff told the court. Wang is the last member of Bankman-Fried's former inner circle to be sentenced by Kaplan. Bankman-Fried's former girlfriend and Alameda Chief Executive Caroline Ellison was sentenced to two years behind bars in September. Nishad Singh, another FTX computer programmer who pleaded guilty, was spared prison time last month. Sign up here. https://www.reuters.com/legal/bankman-frieds-ex-deputy-wang-avoids-prison-time-over-crypto-fraud-2024-11-20/

2024-11-20 15:17

JOHANNESBURG, Nov 20 (Reuters) - South Africa's rand slipped on Wednesday against a buoyant dollar, despite inflation dropping to its lowest level in more than four years, and as investors geared up for a policy announcement by the central bank on Thursday. At 1501 GMT, the rand traded at 18.1350 against the dollar , about 0.5% weaker than its previous close. Trade in the local currency has been volatile as investors sought safe-haven assets amid escalating tensions between Russia and Ukraine and as the dollar benefited from Donald Trump's U.S. election win. October inflation cooled to 2.8% from 3.8% in September (ZACPIY=ECI) , opens new tab, Statistics South Africa data showed on Wednesday, one day before the South African Reserve Bank will announce its final monetary policy decision for the year. Inflation has only been below 3% in a handful of months in the past two decades. The SARB aims for the 4.5% level, the midpoint of its 3% to 6% target range. Economists polled by Reuters expect the central bank to reduce the repo rate by 25 basis points on Thursday. "With South Africa's inflation falling to 2.8%, its lowest since June 2020, expectations for a 50 basis points cut by the SARB have increased, heightening the rand's vulnerability," said Zain Vawda, market analyst at MarketPulse by OANDA. On the Johannesburg Stock Exchange, the blue-chip Top-40 index (.JTOPI) , opens new tab closed about 0.8% up. South Africa's benchmark 2030 government bond was stronger, with the yield down 6.5 basis point to 9.045%. Sign up here. https://www.reuters.com/markets/currencies/south-african-rand-slips-inflation-fall-drives-bigger-rate-cut-optimism-2024-11-20/

2024-11-20 12:45

SANTIAGO, Nov 20 (Reuters) - Tighter external financing conditions could impact Chile's households, businesses and mortgages, increasing default risks they might face, the central bank said on Wednesday. In its Financial Stability Report for the second half of the year, the bank said households' financial position continues to improve but remains below pre-pandemic levels. It said the local banking system had enough guarantees and capital to withstand severe shocks. Despite that, the bank said the main risk to domestic financial stability was posed by external factors. "Elevated levels of public and private debt in the world, along with high deficits, are the main worry," the report said, noting this had led to high long-term interest rates. It added that rising geopolitical tensions over the past few months could have a negative impact on stability. Those most impacted would be groups the bank considers "most vulnerable". On Tuesday the bank's board voted unanimously to keep capital requirements for risk assets at the current level of 0.5%, a measure activated in May 2023 that obliges banks to set aside a cushion to absorb potential losses. Sign up here. https://www.reuters.com/markets/chiles-central-bank-tighter-external-financing-could-impact-households-2024-11-20/