2024-11-20 12:43

Nov 20 (Reuters) - Major oil and gas companies have ramped up investments in the biofuels sector, betting on sustainable aviation fuel (SAF), with 43 projects expected to be up and running by 2030, consultancy Rystad said in a report. The energy research firm indicates that investments by industry giants such as ExxonMobil (XOM.N) , opens new tab, Chevron (CVX.N) , opens new tab, BP (BP.L) , opens new tab, Shell (SHEL.L) , opens new tab, TotalEnergies (TTEF.PA) , opens new tab, and Eni (ENI.MI) , opens new tab could add 286,000 barrels per day (bpd) of production capacity. SAF, produced from waste and residue like used cooking oil or organic crops, emits the same amount of carbon dioxide as kerosene when burned. However, it's considered less polluting due to its production from leftovers or plants rather than newly drilled oil, which releases additional greenhouse gases. The aviation industry accounts for nearly 2% of global energy-related carbon dioxide emissions. "As the energy transition progresses, these biofuels offer a practical, near-term solution to reduce emissions without requiring significant changes to current infrastructure," said Lars Klesse, analyst of bioenergy research at Rystad. BP leads the pack with the largest announced production capacity, reaching a combined 130,000 bpd. Strategic acquisitions, such as BP's purchase of Bunge Bioenergia and Chevron's takeover of Renewable Energy Group, have strengthened oil majors' positions in this space. Despite its higher cost compared to petroleum-based jet fuel, SAF uptake is gaining momentum. Government mandates are driving investments, with the European Union requiring a minimum of 2% of SAF , opens new tab use in aviation by 2025, and the Biden White House aiming to meet all U.S. aviation fuel demand with SAF by 2050 , opens new tab. Sign up here. https://www.reuters.com/markets/commodities/oil-majors-are-betting-big-biofuels-with-over-40-projects-by-2030-rystad-says-2024-11-20/

2024-11-20 12:42

PARIS, Nov 20 (Reuters) - French steelworkers in two northern French cities went on strike on Wednesday, the CFDT union told Reuters, following steelmaker ArcelorMittal's (MT.LU) , opens new tab warning of two potential plant closures in northern France affecting some 130 workers. The potential closures are due to problems in the European auto industry and high raw material and energy costs, the company said. European industries have continued to struggle to recover as gas and power prices remain high, with the steelmaker the latest company in the region to announce job cuts and closures. The steel company's announcement comes two weeks after French tyre maker Michelin announced that it was closing two French sites. German automaker Volkswagen has also warned of possible factory closures. Sign up here. https://www.reuters.com/world/europe/steelworkers-northern-france-go-strike-over-potential-plant-closures-2024-11-20/

2024-11-20 12:40

TSX ends up 0.1% at 25,036.46 Energy adds 1%; oil settles 0.75% lower Consumer discretionary falls 0.9% Dollarama ends down 3.3% Nov 20 (Reuters) - Canada's main stock index inched higher on Wednesday as gains for energy shares offset investor reluctance to make big bets ahead of the release after the close of an earnings report from U.S. megacap Nvidia (NVDA.O) , opens new tab. The S&P/TSX composite index (.GSPTSE) , opens new tab ended up 25.69 points, or 0.1%, at 25,036.46, stopping just short of the record closing high it notched last Thursday at 25,049.67. "Today isn't about the geopolitical risk that we started the day yesterday with," said Philip Petursson, chief investment strategist at IG Wealth Management. "Today seems to be a little bit more hesitation about what's going to take this rally to that next leg." U.S. benchmark the S&P 500 (.SPX) , opens new tab was close to unchanged as Ukraine fired long-range British Storm Shadow missiles into Russian territory and investors awaited Nvidia's earnings. Energy added 1% even as oil settled 0.75% lower at $68.87 a barrel. Consumer staples was another bright spot. It rose 0.6%, recouping some of the previous day's decline. In contrast, the consumer discretionary group lost 0.9%, with shares of retailer Dollarama (DOL.TO) , opens new tab falling 3.3% to hit a three-week low. The Alberta government appointed former Canadian Prime Minister Stephen Harper as chairman of the Alberta Investment Management Corp, after dismissing the entire board earlier this month because of low returns. Sign up here. https://www.reuters.com/markets/tsx-futures-flat-ahead-nvidias-quarterly-results-2024-11-20/

2024-11-20 12:35

Nov 20 (Reuters) - Chinese autonomous driving firm Pony AI said on Wednesday it was targeting a valuation of up to $4.55 billion in its upsized initial public offering in the United States. The company is now aiming to raise as much as $260 million in the IPO by offering 20 million American depositary shares (ADSs) priced between $11 and $13 each. Guangzhou-based Pony AI had earlier planned on selling 15 million ADSs at the same price range. The company plans to list on the Nasdaq under the symbol "PONY". The offering is being underwritten by Goldman Sachs, BofA Securities, Deutsche Bank, Huatai Securities and Tiger Brokers. Sign up here. https://www.reuters.com/business/autos-transportation/chinese-robotaxi-firm-pony-ai-seeks-raise-up-260-mln-upsized-us-ipo-2024-11-20/

2024-11-20 12:24

Reuters poll graphic on impact of Trump's proposed tariffs on the U.S. economy: BENGALURU, Nov 20 (Reuters) - The U.S. Federal Reserve will trim interest rates next month but make shallower cuts in 2025 than expected just a month ago due to the risk of higher inflation from President-elect Donald Trump's proposed policies, according to most economists in a Reuters poll. Prospects for a price resurgence based on his planned policies, including higher tariffs and tax reductions, led markets to nearly halve rate cut pricing to around 75 basis points by end-2025 over the past few weeks. Relentless economic strength, stubborn inflation and stock markets flirting with record highs have become barriers against hasty rate cuts. Fed Chair Jerome Powell said last week "the economy is not sending any signals that we need to be in a hurry to lower rates." Still, nearly 90% of economists, 94 of 106, in the Nov. 12-20 Reuters poll expected a 25bp cut in December, taking the fed funds rate to 4.25%-4.50%. Twelve expected no change, compared to only three in last month's survey. But market pricing showed there is now less than a 60% chance of a December cut. Until recently only a few were betting against such a move. "We're still calling for a December cut. We think the data will behave. But you can see why markets kind of pricing another sort of coin flip...the economy is still very strong, inflation is still running above target," said Stephen Juneau, a U.S. economist at Bank of America. "We'll see deregulation, easier fiscal policy, more protectionist trade policy and a tighter immigration stance. They all kind of pose an upside risk to inflation...the Fed is unlikely to cut as deeply as we previously considered because they're going to see inflation continue to be stuck above their target." BofA recently upped its terminal fed funds rate forecast to 3.75%-4.00% from 3.00%-3.25%. The inflation outlook over the next two years was broadly upgraded from last month, poll medians showed, with personal consumption expenditures (PCE) inflation - the Fed's preferred gauge - predicted to mostly remain above the Fed's 2% target until at least 2027. An 85% majority, 57 of 67 respondents, said the risk of inflation resuming next year had risen. Most economists said Trump's proposed tariffs would be implemented early next year, which according to a strong majority, 44 of 51 will have a significant impact on the U.S. economy. Tariffs on imports from China could shave up to 1 percentage point from Chinese economic growth next year, a separate Reuters poll showed. "A universal tariff... on all imported goods and even higher tariffs on Chinese goods are likely to lead to a rebound in inflation," said Philip Marey, senior U.S. strategist at Rabobank. "Keep in mind unemployment is still relatively low and, especially with increased border security, it would not take long for wage pressures to creep back up. This only reinforces our long-held call the Fed's cutting cycle will be cut short in 2025." The Fed will deliver a 25bps cut in the first three quarters but then be on hold, poll medians showed, putting the fed funds rate at 3.50%-3.75% by end-2025, 50bps higher than last month's projection. But there was no clear consensus. Nearly 30% of economists, 29 of 99, predicted the rate to be in a 3.75%-4.00% range or higher and 28 saw it at 3.50%-3.75%, higher than the Fed's 2.9% current estimate of the neutral rate, which neither stimulates nor restrains the economy. Among 72 common contributors in this and last month's poll, two-thirds, 48, lifted their end-2025 rate forecasts by around 50bps on average. The U.S. economy, which grew an annualized 2.8% last quarter, will expand 2.7% this year and 2% in 2025 and 2026, poll medians showed. That is faster than what Fed officials currently see as the non-inflationary growth rate of 1.8% over coming years. (Other stories from the Reuters global economic poll) Sign up here. https://www.reuters.com/markets/us/fed-lower-rates-dec-slow-pace-2025-inflation-risks-2024-11-20/

2024-11-20 12:24

BAKU, Nov 20 (Reuters) - OPEC Secretary General Haitham Al Ghais on Wednesday told the COP29 climate summit in Baku that crude oil and natural gas were a gift from God, and that global warming talks should focus on cutting emissions not picking energy sources. His words echoed those of Azerbaijan President Ilham Aliyev, who used his opening address to the summit to hit back at Western critics of his country's oil and gas industry, and also described those resources as a gift from God. "They are indeed a gift of God," Al Ghais, a veteran Kuwaiti oil executive, said in a speech at the conference. "They impact how we produce and package and transport food and how we undertake medical research, manufacture, distribute, medical supplies. I could go on forever." He said that world governments, which agreed to limit planetary warming to 1.5 degrees Celsius above pre-industrial levels at the 2015 summit in Paris, could achieve their climate targets without shunning petroleum. "The focus of the Paris Agreement is reducing emissions, not choosing energy sources," he said. The Organization of the Petroleum Exporting Countries (OPEC) has said that technologies like carbon capture can tackle the climate impact of burning fossil fuels. Sign up here. https://www.reuters.com/business/energy/opec-secretary-general-tells-cop29-oil-is-gift-god-2024-11-20/