2024-11-08 22:34

HAVANA, Nov 8 (Reuters) - Cuba had restored power to nearly 20% of the capital Havana by late on Friday afternoon, the government said, two days after hurricane Rafael struck the island and collapsed the country's electrical grid, leaving millions in the dark. Rafael knocked out hundreds of power lines and poles across the western half of the country, downing trees, cutting communications and complicating recovery efforts. The hurricane strike was the latest blow to the Communist-run country's already precarious electrical grid, which just two weeks ago collapsed multiple times, knocking out power for days and sparking scattered protests across the island. The timing could not have been worse. Another hurricane, Oscar, struck the far eastern end of Cuba in mid-October, a one-two punch that has crippled a country already suffering from severe shortages of food, fuel and medicine. On Friday, officials said the national grid was back online and providing electricity to parts of central and eastern Cuba, though the hard-hit western farm provinces of Pinar del Rio and Artemisa were still largely without electricity ahead of the weekend. Central Havana and its eastern suburbs saw lights flicker back on in places on Friday. Most of the western half of the city of two million people, however, remained in the dark. Authorities had not yet given an estimate for when power would be fully restored in the capital. Havana resident Claudia Espinosa, who lives in Vedado, where many trees and power lines still littered city streets, said she had been without power for three days. "The situation is critical," she said. "There is no water, there is no food, everything is going to waste." Cuba's grid operator UNE on Friday warned that even in areas where power was available, the country was still running a substantial generation deficit and blackouts would persist. The country's decrepit oil-fired generation plants have struggled to keep the lights on for decades, but this year the system collapsed into crisis as oil imports dropped off from allied countries like Venezuela and Mexico. Russia on Friday pledged to provide Cuba with approximately 80,000 tons of diesel fuel worth $60 million to assist the island nation in its energy crisis, Russian state-run RIA news agency reported on Friday. Sign up here. https://www.reuters.com/world/americas/cuba-restores-power-parts-havana-following-hurricane-2024-11-08/

2024-11-08 22:28

Banking industry seeks rollback of proposed Basel III Endgame rules Financial industry aims to preserve lower corporate tax rates Trump's team more organized in outreach to industry groups than in first term WASHINGTON/NEW YORK, Nov 8 (Reuters) - The banking and finance industries are rapidly drawing up wish lists for lighter regulation under President Donald Trump's incoming administration as Wall Street sees a window of opportunity to influence policy. Numerous financial trade groups are working on detailed lists to hand to Trump's transition team, according to four industry sources who asked not to be identified. That follows weeks of outreach from Trump's team to industry groups, lawyers and lobbyists in preparing for a potential White House return in 2025, according to three sources familiar with the effort. Some of the trade groups want to deliver the wish lists urgently, two of the sources said. The speed at which the transition team and industry are moving to identify potential regulatory relief underscores how aggressively the new administration could move. Following Trump's resounding victory on Tuesday, that effort has gained momentum, with Trump allies asking industry players to detail what governmental issues they have and how they should be fixed. The Trump transition team did not respond to a request for comment. BANK INDUSTRY REQUESTS The banking industry is keen to see the next administration step back on numerous contentious rule-writing projects, most notably proposed Basel III Endgame rules, that would require big banks to hold far more capital to reduce risk. Bank groups have pressed regulators for months to drastically curtail those plans and expect the next administration to start fresh or revamp the current product, according to three of the industry sources. Banks are also likely to seek relief from fair-lending rules that they are battling in court, easier-to-navigate annual big-bank stress tests and a lighter evaluation of bank mergers, said three of the sources. Major U.S. lenders favor remaining within the Basel framework of international banking standards, but are seeking more lax capital requirements that they say still comply with the rules, said two sources familiar with banks' lobbying efforts, who declined to be identified because the discussions are still in flux. The Consumer Financial Protection Bureau, which has boosted enforcement actions on banks under director Rohit Chopra, is another area of focus. Trump appointees are expected to pause CFPB rules relating to credit-card fees, open banking and so-called junk fees, according to an industry representative, who declined to be identified as talks are private. The CFPB did not immediately respond to a request for comment. Banks and the broader financial industry will closely monitor an effort to write tax legislation in Congress, as many provisions of a 2017 tax law ushered through by Trump in his first term are set to expire. Among top industry priorities will be preserving lower corporate tax rates. The private fund industry is focused on easing an aggressive agenda from the Securities and Exchange Commission, as well as preserving the tax treatment of carried interest so it continues to be taxed as capital gains and not ordinary income, according to one person familiar with the matter. "The reforms adopted over the last three-and-a-half years enhance efficiency, competition, and investor protection in the U.S. capital markets," a spokesperson said. "The agency’s enforcement actions have held wrongdoers accountable and returned billions to harmed investors.” The four industry sources said outreach from Trump's team has already been more robust and detailed than in 2016, and suggests a more organized and efficient effort to build out the new administration. In addition to seeking policy recommendations, industry representatives say they also have been asked for input on potential high-level appointees to lead bank and financial regulators. However, industry sources noted it could still take several weeks or months after Trump is sworn in on Jan. 20 to get some new regulatory chiefs installed, as the Senate is likely to consider higher-level cabinet picks first, two of the people said. One of the items on the list of the Alternative Investment Management Association, which represents $3 trillion in hedge and private credit funds, is more dialogue between industry participants and regulators. Private funds have challenged the SEC over its rulemaking and scored a big win this year when a U.S. appeals court in June overturned a major SEC rule imposing stricter oversight of them. The other cases are still pending a court decision. "I anticipate a return to traditional rulemaking with that proactive engagement, where there's not this adversarial relationship with a majority of the market participant community," said Daniel Austin, head of U.S. markets policy and regulation at AIMA. Sign up here. https://www.reuters.com/markets/us/wall-street-drafts-trump-wish-lists-over-bank-capital-sec-regulation-2024-11-08/

2024-11-08 22:20

Nov 8 (Reuters) - U.S. President-elect Donald Trump's transition team has prepared executive orders and proclamations on withdrawing from the Paris climate agreement and shrinking the size of some national monuments to allow more drilling and mining, the New York Times reported on Friday. Trump is also expected to end the pause on permitting new liquefied natural gas exports to big markets in Asia and Europe and revoke a waiver that allows California and other states to have tighter pollution standards, according to the report. Trump promised during his campaign to take many of the actions listed in the report. Karoline Leavitt, a spokeswoman for the Trump transition team, said in a response to a Reuters request that the results of Tuesday's election gave him a "mandate to implement the promises he made on the campaign trail. He will deliver." The administration of President Joe Biden paused approvals of new LNG exports in January in order to complete a study on the environmental and economic impact of the exports. The U.S. Energy Department will have a draft updated analysis out for a 60-day public comment period before the end of the year, a department official said. Some people on the transition team are discussing moving the headquarters of the Environmental Protection Agency out of Washington, the report said, citing unnamed people involved in the discussions. Sign up here. https://www.reuters.com/business/environment/trump-prepares-withdrawing-paris-climate-agreement-nyt-reports-2024-11-08/

2024-11-08 21:46

Nov 8 (Reuters) - Over 23% of crude oil production and 10% of natural gas output in the U.S. Gulf of Mexico was shut in by Hurricane Rafael, the U.S. Bureau of Safety and Environmental Enforcement said on Friday. Energy producers have evacuated dozens of offshore production platforms and shut in 408,830 barrels per day of oil production and nearly 201 million cubic feet per day of natural gas from Gulf waters, the offshore regulator said. Packing 100 mph (161 kph) winds, Rafael was in the central Gulf of Mexico on Friday and expected to remain in a meandering course there for the next several days. The National Hurricane Center predicted its winds would gradually lose strength. The late season storm overall will reduce U.S. offshore production by about 2 million barrels of oil and 1.1 billion cubic feet of natural gas, estimates researcher Earth Science Associates. Top offshore producers, including BP (BP.L) , opens new tab, Chevron (CVX.N) , opens new tab, Equinor (EQNR.OL) , opens new tab and Shell (SHEL.L) , opens new tab had evacuated employees from offshore facilities and in some cases halted oil and gas production. Occidental Petroleum (OXY.N) , opens new tab said it was implementing safety procedures at its offshore facilities. The shut-ins can take several days to reverse as companies assess the status of their facilities and return workers once the storm moves away. Sign up here. https://www.reuters.com/business/energy/over-23-us-gulf-mexico-oil-output-shut-due-hurricane-rafael-2024-11-08/

2024-11-08 21:44

Red sweep could offer Trump free hand to implement proposals Small-cap stocks seen rising on election results Dollar strengthens amid GOP control prospects NEW YORK, Nov 8 (Reuters) - Investors are increasingly factoring what potential Republican control of government could mean for stocks, bonds and currencies, even as the first feverish market reactions to Donald Trump’s presidential victory begin to settle. A so-called red sweep scenario, in which Republicans control the White House and both houses of Congress, could clear the way for Trump to implement his economic proposals with a freer hand. Many, such as tax cuts, are seen as being growth-friendly but also driving up inflation risks. Republicans held a narrow edge on Friday as election officials tallied the final votes that will determine control of the U.S. House of Representatives, though Democrats succeeded in flipping a pair of New York state seats. "With many of Trump's policies geared to support stocks, particularly small caps, markets are likely to respond well to a red sweep," said JJ Kinahan, CEO of IG North America and president of online broker Tastytrade. Expectations that such policies will be pushed through under Trump to some degree have helped lift corners of the stock market higher, boost the dollar and weigh on Treasuries, as investors recalibrated their portfolios for stronger growth, looser regulations and the possibility that inflation worries could keep the Federal Reserve from cutting rates too deeply next year. One notable move has been in small cap stocks, with the Russell 2000 index (.RUT) , opens new tab up about 8% this week. While some of those moves have lost steam in recent days, investors are still gaming out how Trump’s policies could affect markets and the economy over the long-term, especially under a red sweep scenario. Trump has promised to slash federal regulations that he says limit job creation. He has pledged to keep in place a 2017 tax cut he signed while in office, and Trump’s economic team has discussed a further round of individual and corporate tax cuts beyond those enacted in his first term. Strategists at Goldman Sachs said their earnings per share estimates for the S&P 500 would rise by about 4% if Trump reduced the statutory domestic corporate tax from 21% to 15%. Deutsche Bank analysts said they would upgrade their 2025 U.S. growth forecast to 2.5-2.75% from 2.2% in the event of a red sweep. However, they expect to reduce their 2026 growth forecast in anticipation of economic uncertainty associated with an intensifying trade war. Republican control of government could also provide a longer-term boost for the dollar, which has already risen to its highest level in four months against a basket of its peers following a post-election surge this week. Strategists at JP Morgan see the euro sinking to $1.00-$1.02, down about 6% from its current level, if there is a sweep, as opposed to a drop to $1.05 in the case of a split Congress. History may also be on the side of continued strong stock performance if a red sweep comes to pass. The S&P 500 rose an average of 9.1% in years of such unified control against a 6.7% average annual return for divided government, in which the opposing party holds at least one of the Senate or House of Representatives, according to an analysis by Evercore ISI of data since 1928. The index is up 26% this year and hit 6,000 points for the first time ever on Friday. To be sure, even with the Republican Congressional majority, some investors believe the narrow margins faced in both the House and Senate may still present challenges to implementing fiscal and regulatory changes. "We may not get everything that has been promised. The discussion on the campaign trail is always very different than the legislation that gets passed," said Paul Nolte, senior wealth advisor and market strategist for Murphy & Sylvest. "I think a lot of that is already in the pricing for stocks today." Sign up here. https://www.reuters.com/markets/us/after-trump-win-investors-savor-red-sweep-possibilities-2024-11-08/

2024-11-08 21:26

NEW YORK/WASHINGTON, Nov 8 (Reuters) - Shares of Trump Media & Technology Group (DJT.O) , opens new tab gained on Friday after U.S. President-elect Donald Trump said he had no intention of selling his shares in the company, which owns his Truth Social media platform. In a post on Truth Social, Trump rejected what he described as rumors that he was planning to sell shares a day after the stock slumped. "There are fake, untrue, and probably illegal rumors and/or statements made by, perhaps, market manipulators or short sellers, that I am interested in selling shares of Truth," Trump wrote. "THOSE RUMORS OR STATEMENTS ARE FALSE. I HAVE NO INTENTION OF SELLING!," Trump added. Shares of the company closed 15.2% higher on Friday at $31.91 and hit a session high of $33.03. The stock was briefly halted for volatility after Trump's comments. On Thursday, shares of the company slumped as speculative bets on Trump winning a second four-year term lost steam a day after his victory over Democrat Kamala Harris. The stock rose 5.9% on Wednesday following Election Day on Tuesday. While Trump and Vice President Harris were nearly tied in most opinion polls leading up to the election, online betting markets favored the former president more, prompting investors to pile into securities that they viewed as more likely to benefit or come under pressure under his leadership. That resulted in a roughly a 200% surge in Trump Media stock in the six weeks before the election. Trump had already said in September that he was not selling his shares in the company and would not leave the social medial platform he founded. Trump owns nearly 115 million shares and has about a 53% stake in Trump Media. At the stock's price on Friday, his piece of the company was worth about $3.7 billion, while its total market capitalization was at around $7 billion. The stock's 30-day implied volatility - an options-based measure of how much traders expect the stock to swing in the near term - has retreated from the record high 300% touched right before the election, but remains highly elevated at about 200%, per Trade Alert data. Even though the presidential election is over, options traders see the stock swinging by as much as 25% over the next week, LSEG options data showed. Sign up here. https://www.reuters.com/markets/us/trump-media-shares-rise-after-trump-says-he-wont-sell-2024-11-08/