2024-10-30 21:38

Exelon has about 11 gigawatts of likely data-center demand Utility is in fight over co-located data centers 'We are not against co-locations,' Exelon CEO Calvin Butler Exelon Q3 earnings beat Wall Street estimates Oct 30 (Reuters) - Exelon (EXC.O) , opens new tab said on Wednesday that its potential data center deals have jumped by about 80% from earlier this year as the U.S. electric utility awaits a decision from regulators on who pays for certain costs related to the fast-moving expansion of the centers. Rising demand from the technology industry's energy-hungry AI data centers has roused the sleepy U.S. power industry, leading to a flurry of deals and regulatory debates over the costs associated with the fast-moving expansion. Exelon has about 11 gigawatts of likely data-center demand within its service territory, rising from 6 GW in the second quarter, executives said on a company earnings call. The requested capacity is currently in the engineering phase, and potential customers have already paid deposits to secure their positions. Earlier this year, Exelon and fellow utility American Electric Power (AEP.O) , opens new tab challenged the interconnection agreement for an Amazon (AMZN.O) , opens new tab data center located on the site of a Pennsylvania nuclear power plant, in an agreement known as a co-located load. When data centers are located on the site of the power plants that feed them, the co-located load agreement allows the centers to power up quickly without toiling in interconnection queues that can take years to clear. Exelon and AEP said the agreement could raise power bills for everyday customers and reduce grid reliability. Proponents of the deal, including power plant operator Talen Energy (TLN.O) , opens new tab, refute the utilities' claims. "We are not against co-locations," Exelon CEO Calvin Butler said on a third-quarter company earnings call. "We just believe everyone should pay their fair share of utilizing the grid." Exelon and AEP have asked the Federal Energy Regulatory Commission to hold a hearing on the center's interconnection request. Exelon said the agency's decision, along with a technical conference the regulator plans to hold this week on co-located loads, would provide clarity. Earnings at Exelon's Commonwealth Edison unit, the largest electric utility in Illinois, rose 8% on higher distribution rate base and return on regulatory assets. The Chicago-based company posted adjusted operating earnings per share of 71 cents for the third quarter, versus analysts' average estimate of 67 cents, according to data compiled by LSEG. Exelon also said it has filed with the Delaware Public Service Commission to increase its annual natural gas rates customers pay by $36 million and expects a decision in the first quarter of 2026. The company's overall revenue was at $6.15 billion for the quarter ended Sept. 30, compared with estimates of $5.85 billion. Sign up here. https://www.reuters.com/business/energy/utility-firm-exelons-profit-beats-estimates-higher-electricity-rates-2024-10-30/

2024-10-30 21:31

Revenue share from APLNG rises 4% Total production share from APLNG falls 1% Pretty stable qtrly performance for APLNG - Jarden Oct 31 (Reuters) - Australia's Origin Energy (ORG.AX) , opens new tab reported on Thursday a sequential rise in its first-quarter revenue from its stake in the Australia Pacific LNG (APLNG) project, underpinned by strong natural gas sales and higher prices. Origin, which is aiming to transition to greener sources of energy, said it is also assessing a range of early-stage renewable development opportunities. Shares of the company were up 0.4% at A$9.54, as of 0014 GMT, while the broader benchmark index (.AXJO) , opens new tab was down 0.2%. LNG prices rose during the reported quarter, helped by warm weather conditions in Asia driving increased energy requirements although prices have moderated in recent times amid tepid demand. The energy retailer said its revenue share from APLNG, a joint venture with U.S. oil and gas company ConocoPhillips (COP.N) , opens new tab and China's state-owned Sinopec (600028.SS) , opens new tab, rose to A$615 million ($404.24 million) for the quarter ended Sept. 30, compared with A$590 million in the previous quarter. The revenue missed a Jarden estimate of A$641 million. The country's second-largest power producer realized $11.95 per metric million British thermal units (mmBtu) for its LNG product in the September quarter from the Queensland project, higher than $11.70 in the June quarter. LNG sales at the APLNG project rose by 4% from the previous quarter to 36.3 petajoules (PJ), the Australia-based company said, adding that its total production share from the project still fell 1% sequentially to 47.7 PJ. "Pretty stable quarterly performance for APLNG, with upstream production volumes broadly flat quarter on quarter," Jarden analysts said in a note. ($1 = 1.5214 Australian dollars) Sign up here. https://www.reuters.com/business/energy/australias-origin-energy-first-quarter-aplng-revenue-rises-4-2024-10-30/

2024-10-30 21:14

LONDON, Oct 30 (Reuters) - Britain will increase tax on the performance fees that private equity fund managers make from asset sales to 32% from a current 28%, a smaller rise than many buyout bosses had feared. UK finance minister Rachel Reeves said in her budget announcement on Wednesday that her government would increase the rate on "carried interest" from April 2025 as part of wider increases to capital gains taxes across most assets. Further changes will be made to rules for carried interest from April 2026 to ensure it is "taxed fully within the income tax framework", the government said in budget documents. Carried interest is only paid by around 3,100 people in Britain, according to the government, but has helped mint a generation of private equity multi-millionaires. Reeves had previously announced she intended to close a loophole that allows executives to pay 28% tax on their performance gains, raising expectations it could be aligned with the top rate of income tax, at 45%. "Today's announcement will likely be greeted with a mixture of relief and caution by the investment funds industry – relief that the anticipated rise in tax rates was limited to 4% and caution about the impact of more sweeping reforms," said Peter Morley, tax expert at law firm Pinsent Masons. The changes in 2026 will mean carried interest will be subject to national insurance contributions too, which Michael Graham, a partner at law firm DLA Piper, said would mean a flat tax rate of 34.625% for all forms of carried interest. The government will also consider changes such as co-investment obligations and extending minimum holding periods, with any changes subject to consultation. The private equity industry had mounted a lobbying campaign against a big rise in tax rates, arguing that the sector was crucial to Britain's need for private investment and that large rises could drive wealthy managers overseas. "It is welcome that the government has listened to our arguments on the value of the private capital industry," said Michael Moore, chief executive of lobby group the British Private Equity and Venture Capital Association (BVCA). Critics say the money executives make on fund performance should be taxed as income because it is a reward for doing their job and because private equity firms are mostly investing other people's money. In explaining its approach, the government said on Wednesday that there were "unique characteristics" of how carried interest was earned which set it apart from other forms of income. Private equity's well-funded campaigns against closing the carried interest tax break have proven effective elsewhere, including in the United States. Sign up here. https://www.reuters.com/world/uk/britain-increases-taxes-private-equity-carried-interest-32-2024-10-30/

2024-10-30 21:03

BOJ keeps short-term rate steady at 0.25% as widely expected Board roughly maintains inflation forecasts Governor Ueda says U.S. risks receding, domestic wages on track Ueda drops message BOJ can 'afford to spend time' on risks Yen rises as markets price in chance of December rate hike TOKYO, Oct 31 (Reuters) - The Bank of Japan maintained ultra-low interest rates on Thursday but said risks around the U.S. economy were somewhat subsiding, signalling that conditions are falling into place to raise interest rates again. The central bank also projected inflation would move around its 2% target in the coming years, stressing its resolve to keep raising borrowing costs if the economy sustains a moderate recovery. "Looking at domestic data, wages and prices are moving in line with our forecasts. As for downside risks to the U.S. and overseas economies, we're seeing clouds clear a bit," Governor Kazuo Ueda told a news conference. Ueda's remarks were less dovish than those made before Thursday's meeting that the BOJ can "afford to spend time" scrutinising the fallout from risks such as U.S. economic uncertainties and volatile financial markets. The dollar briefly fell to 151.92 yen from levels above 153 yen after Ueda's remarks, which were interpreted as heightening the chance of a rate hike in December. "As for the timing of the next rate hike, we have no preset idea. We will scrutinise data available at the time of each policy meeting, and update our view on the economy and outlook, in deciding policy," Ueda told the news conference. As widely expected, the BOJ kept short-term interest rates at 0.25% at its two-day meeting, its first since an inconclusive general election that analysts say will complicate efforts to normalise interest rates after years of ultra-easy policy. NEW RISKS MAY EMERGE The BOJ had said it could "afford to spend time" scrutinising risks after its rate hike in July, and weak U.S. jobs data, triggered a sharp yen spike and a global market rout. Markets have restored some calm since then, as a slew of robust data diminished market fears of a U.S. recession. "When we used language that we can 'afford to spend time' gauging risks, weak U.S. jobs data led to volatile market moves, which we saw as having a grave impact on Japan's economy," Ueda said. "Since then, we have seen some fairly good U.S. data." But Ueda stressed the need to stay vigilant to overseas and market developments, saying new risks could emerge depending on who becomes the next U.S. president at the Nov. 5 election. "Ueda's remarks sounded somewhat hawkish," said Hiroshi Watanabe, senior economist at Sony Financial Group. "Many market players had bet that the next rate hike will come in the January-March quarter next year. But he sounded as if he left open the chance of a December hike," he said. The BOJ next meets for a policy meeting on Dec. 18-19, followed by another meeting on Jan. 23-24. In its quarterly outlook report, the BOJ repeated that it expects underlying inflation to converge around 2% sometime around late 2025 or beyond, as service prices continue to rise moderately. The board cut its core consumer inflation forecast for fiscal 2025 to 1.9% from 2.1% in the previous estimate in July, but said risks were skewed to the upside for that year. It kept unchanged its fiscal 2026 core inflation forecast at 1.9%. "If we see wages rise at around the same level of this year, that would be a positive development for us," Ueda said when asked about prospects for next year's wage talks between firms and unions. "But that alone won't directly lead to rate hikes." The BOJ ended negative rates in March and raised short-term rates to 0.25% in July on the view Japan was making progress towards sustainably achieving its 2% inflation target. Ueda has repeatedly said the BOJ will keep raising rates if the economy moves in line with its forecast. The ruling coalition's loss of a majority in a weekend election has heightened concerns about policy paralysis, which could raise the hurdle for additional rate hikes, analysts say. "Recent political developments alone won't directly affect our price forecasts," Ueda said. "But if there are big changes in policy, we will revise our forecasts as needed taking into account the impact of such moves." A slim majority of economists polled by Reuters on Oct. 3-11 expected the BOJ to forgo a hike this year, though most expect one by March. Sign up here. https://www.reuters.com/markets/asia/boj-keep-rates-steady-politics-muddles-outlook-2024-10-30/

2024-10-30 20:58

Coinbase Global posts Q3 profit vs year ago loss Quarterly trading volumes more than double Transaction revenue nearly doubles Oct 30 (Reuters) - Coinbase Global (COIN.O) , opens new tab posted a third-quarter profit on Wednesday, helped by strong trading volumes at the exchange as cryptocurrency increasingly becomes a part of the mainstream investment industry following a string of regulatory clearances. Crypto markets have been volatile this year, with some of the key assets gaining after the U.S. Securities and Exchange Commission approved an exchange-traded fund to track the spot price of bitcoin and ether, only to lose steam later on economic uncertainties. The volatility in the asset class has helped third-quarter trading volumes grow to $185 billion from $76 billion at the largest cryptocurrency exchange in the world, giving a boost to transaction fees. In the last few weeks, sentiment towards the industry has shifted in lockstep with the odds of a Republican win in the presidential election, as Donald Trump has positioned himself as the pro-bitcoin candidate. "The upcoming 2024 elections are the next major milestone in our ongoing work to drive regulatory clarity for crypto," the company said in a shareholder letter. "Both presidential candidates are now courting the crypto voter in their statements. Over 350 politicians running for federal office have now adopted pro crypto stances," Coinbase CEO Brian Armstrong said on a conference call. Coinbase's total transaction revenue nearly doubled to $572.5 million in the third quarter, helping the exchange post total revenue of $1.21 billion, up from $674.15 million a year earlier. Revenue from Coinbase's subscription and services unit, which houses businesses outside of trading, rose to $556.1 million in the quarter from $334.4 million a year earlier. Quarterly custodial fee revenue climbed to $31.7 million from $15.8 million last year, benefiting from inflows tied to spot bitcoin ETFs. Coinbase is the custodian for several of the spot bitcoin ETFs, including BlackRock's iShares Bitcoin Trust (IBIT.O) , opens new tab. Net income attributable to shareholders came in at $75.46 million, or 28 cents per share, for the three months ended Sept. 30, compared with a loss of $2.27 million, or 1 cent per share, a year earlier. Sign up here. https://www.reuters.com/technology/coinbase-posts-third-quarter-profit-trading-strength-2024-10-30/

2024-10-30 20:51

DANA causes flash floods, hail, and tornadoes in Spain Experts suspect DANA's growing frequency linked to climate change Aemet: DANA is a high-altitude depression, distinct from common storms Oct 30 (Reuters) - Catastrophic flash floods that have killed at least 72 people in Spain are caused by a destructive weather system in which cold and warm air meet and produce powerful rain clouds, a pattern believed to be growing more frequent due to climate change. The phenomenon is known locally as DANA, a Spanish acronym for high-altitude isolated depression, and unlike common storms or squalls it can form independently of polar or subtropical jet streams. When cold air blows over warm Mediterranean waters it causes hotter air to rise quickly and form dense, water-laden clouds that can remain over the same area for many hours, raising their destructive potential. The event sometimes provokes large hail storms and tornadoes as seen this week, meteorologists say. Eastern and Southern Spain are particularly susceptible to the phenomenon due to its position between the Atlantic Ocean and the Mediterranean Sea. Warm, humid air masses and cold fronts meet in a region where mountains favour the formation of storm clouds and rainfall. This week's DANA was one of the three most intense such storms in the last century in the Valencia region, Ruben del Campo, spokesperson for the national weather agency Aemet, said. "Forecasts were in line with what happened. But in an area between Utiel and Chiva, in the province of Valencia, rainfall exceeded 300 litres per square meter. In that area, storm systems formed and regenerated continuously," he explained. 'FINGERPRINTS OF CLIMATE CHANGE' While experts say it will take time to analyse all the data to determine if this particular DANA was caused by climate change, most agree that an increase in temperature of the Mediterranean and warmer and more humid atmospheric conditions contribute to producing more frequent extreme episodes. "We're going to see more of these flash floods in the future. This has the fingerprints of climate change on it, these terribly heavy rainfalls, and these devastating floods," said Hannah Cloke, professor of hydrology at the University of Reading. She said even early warnings of heavy rain based on reliable forecasts did little to prevent the fatalities and people needed to understand the real danger. "Just telling people that it's going to rain quite a lot, it's not good enough...We could see that people were putting themselves at risk driving in floodwaters, and there was just so much water that it has overwhelmed these places." Before the term DANA was coined in the early 2000s, any heavy rainfall in the autumn, characteristic of the Mediterranean climate, used to go by the popular name "gota fria" (cold drop) in Spain and parts of France. The term is still widely used colloquially. Its origin dates back to 1886 when German scientists introduced the idea of "kaltlufttropfen", or cold air drop, to describe high altitude disturbance but without apparent reflection on the surface. Aemet says the concept of cold drop is outdated and defines DANA as a closed high-altitude depression that has become isolated and separated from an associated jet stream. Aemet says DANAs sometimes become stationary or even move backwards, from east to west. Sign up here. https://www.reuters.com/business/environment/spains-deadly-dana-weather-phenomenon-its-links-climate-change-2024-10-30/