2024-10-29 21:31

Oct 29 (Reuters) - U.S. Treasury Secretary Janet Yellen said on Tuesday that it was important to continue tailoring the complexity and severity of banking regulations to the activities of institutions to avoid undue compliance burdens, but said she is predisposed to robust capital requirements. Yellen, asked about a proliferation of regulatory burdens from multiple agencies at an American Bankers Association annual meeting in New York, said strong capital requirements put in place after the 2007-2009 financial crisis helped the U.S. economy weather the COVID-19 pandemic. "Knowing how important it is to have a healthy banking system in order to have a healthy and resilient economy, I guess my predilection is very much toward robust capital liquidity, to make sure that we do have a banking system that can support the economy that's safe and sound," Yellen said. She said the industry's concerns that the 2010 Dodd-Frank banking regulation law would make U.S. banks uncompetitive were proved unfounded, but has heard industry complaints about increasing regulatory burdens "loud and clear" and added that regulators should coordinate their approaches. "I recognize that there is a substantial burden," she said. "It continues to evolve as we deal with the cloud, with non-banks, with third-party service providers, with cyber attacks and a growing, growing list of matters that all banking institutions need to be attentive to, but I hope that tailoring can help to reduce the burden for the smaller banks." Yellen said in prepared remarks that the Treasury and regulators would work with the banking sector to address vulnerabilities revealed by turmoil in 2023 after the failure of Silicon Valley Bank and Signature Bank. These include increased shares of uninsured and concentrated deposits and unrealized losses on loan and securities portfolios, she said. "This means ensuring that banks are prepared for liquidity stress, including making sure banks have diverse sources of contingency funding, and the capacity to borrow at the discount window and periodically test this capacity," Yellen said. Sign up here. https://www.reuters.com/markets/us/yellen-says-tailoring-bank-rules-helpful-strong-capital-requirements-important-2024-10-29/

2024-10-29 21:03

New rules add some specific equipment and reporting requirements Applies to projects with more than 15,000 PSI, or more than 350F Regulators expect rise in ultra-high pressure projects BP awards SLB a key contract for ultra-high pressure Kaskida project HOUSTON, Oct 29 (Reuters) - The Bureau of Safety and Environmental Enforcement (BSEE) rolled out new rules for U.S. offshore drillers on Tuesday, as breakthrough technology enables them to operate under extreme subsea pressures and unlock billions in untapped oil reserves. BSEE's final rule comes after Chevron (CVX.N) , opens new tab in August started production at its Anchor asset, owned with TotalEnergies (TTEF.PA) , opens new tab, which was the first ever project to operate at 20,000 pounds per square inch (PSI) of pressure, reaching reservoir depths of 34,000 feet (10,363 m). The new technology could unlock some 5 billion barrels of previously inaccessible crude globally, or about 50 days of current production, analysts have said, but some safety concerns have loomed. British oil major BP (BP.L) , opens new tab was drilling at 15,000 PSI when a blowout on its Deepwater Horizon project killed 11 workers and spilled 3.19 million barrels of oil into the U.S. Gulf of Mexico in 2010. BSEE's final rules apply to projects with more than 15,000 PSI, or temperatures of more than 350 degrees Fahrenheit (177°C). They add some specific equipment and reporting requirements on new technology projects, and in some cases will require third parties to review some information before submission to BSEE, for projects that will operate offshore in high pressure, high temperature conditions. "Historically, most oilfield equipment has not been designed to withstand such high pressures and temperatures," BSEE's final rule reads. "High-pressure, high temperature-associated operations require the use of equipment that exists at the limits of current technology and lacks a long operational history." The latest regulations aim to improve safety and clarity to the industry as it expects the number of ultra-high pressure projects to increase. BP early next year will begin ultra-high pressure drilling of 20,000 PSI at its Kaskida field in the Gulf of Mexico. The oil major on Tuesday awarded oilfield services firm SLB (SLB.N) , opens new tab a contract for a subsea boosting system for the project. BP greenlighted the Kaskida project in July. The field, which was discovered twenty years ago before the new high-pressure technology existed, has an estimated 10 billion barrels in reserves. The Gulf of Mexico production accounts for about 14% of U.S. oil output, and will reach 1.88 million barrels per day by the end of 2025, compared with 1.63 million bpd as of September, according to the Energy Information Administration. Chevron's Anchor production is expected to hit around 15,000 bpd by the end of the year and rise to 45,000 bpd by the end of 2025, according to Energy Aspects. The lift in output comes as operators are eyeing lower breakeven costs and lower carbon emissions intensity in deepwater assets compared with shale resources, according to Matthew Hale, senior vice president of drilling wells & research at Rystad Energy. Deepwater breakeven oil prices average around $40 per barrel globally and emissions intensity is the lowest across major oil supply segments, according to Hale. Breakeven prices in the onshore Permian basin, the top U.S. oilfield, are closer to $50 per barrel, according to Enverus Intelligence. Sign up here. https://www.reuters.com/business/energy/us-sets-new-safety-measures-deep-sea-oil-drillers-test-new-depths-2024-10-29/

2024-10-29 21:03

EQT sells remaining stake in non-operated Pennsylvania natural gas assets for $1.25 bln Proceeds to help EQT reduce $13.8 billion debt Beats Wall Street expectations for Q3 profit; forecasts higher sales in Q4 Oct 29 (Reuters) - EQT Corp (EQT.N) , opens new tab said on Tuesday it would sell its remaining interest in its non-operated natural gas assets in northeast Pennsylvania for $1.25 billion in cash to Equinor (EQNR.OL) , opens new tab. The sale comes just months after EQT sold a 40% interest in the assets to Equinor USA in exchange for the Norway-based company's onshore asset in the Appalachian basin and $500 million in cash. Proceeds from the transaction, which is expected to close in the current quarter, will be used to help EQT shed its debt pile, which it accumulated after completing the $14 billion purchase of pipeline operator Equitrans Midstream in July. Though the acquisition added more than 2,000 miles of pipelines to its portfolio, EQT's total debt increased substantially to $13.8 billion as of Sept. 30, compared to $5.8 billion as of Dec. 31, 2023. Equinor will now hold a 40.7% working interest in the gas assets located in the Marcellus shale and will add nearly 80,000 barrels of oil equivalent per day to its near-term U.S. production, the Norwegian firm said in a separate statement. EQT also beat Wall Street expectations for third-quarter profit, benefiting from higher sales volumes, which rose to 581 billion cubic feet equivalent (bcfe) in the three months ended Sept. 30, from 523 bcfe last year. The company raised its total sales volumes forecast to be in the range of 555-605 bcfe in the current quarter, compared to a prior outlook of 515–565 bcfe. Rival Expand Energy (EXE.O) , opens new tab, which dethroned EQT as the top U.S. producer after its $7.4 billion buy of Southwestern Energy, also posted a surprise profit for the quarter owing to a slight rebound in natural gas prices. Pittsburgh, Pennsylvania-based EQT posted an adjusted profit of 12 cents per share for the quarter, compared with analysts' estimates of 6 cents per share, according to data compiled by LSEG. Sign up here. https://www.reuters.com/business/energy/natgas-producer-eqt-sells-remaining-stake-pennsylvania-assets-beats-third-2024-10-29/

2024-10-29 20:47

Oct 29 (Reuters) - U.S. solar panel maker First Solar (FSLR.O) , opens new tab lowered its sales forecast for the current year on Tuesday, even after reporting a rise in third-quarter profit helped by higher prices following additional tariffs on foreign-made panels. Shares were down 6.9% at $185.99 in after-market trade. Residential installations have fallen sharply this year, and utility-scale projects face challenges including long waits to connect to the grid and a shortage of skilled labor. The company lowered its full-year 2024 sales forecast to between $4.10 billion and $4.25 billion, from its previous expectation of between $4.4 billion to $4.6 billion. The company reported a sequential decline in quarterly sales, hurt by a decrease in the volume of megawatt (MW) sold. However, the company reported a 16.6% rise in net profit for the quarter ended Sept. 30, at $313 million, or $2.91 per share, compared with a year earlier. The Biden administration imposed new tariffs on foreign-made solar modules in May, benefiting U.S. companies like First Solar that produce domestically. Sign up here. https://www.reuters.com/business/energy/first-solar-lowers-annual-sales-forecast-posts-rise-q3-profit-2024-10-29/

2024-10-29 20:44

Alphabet beats quarterly revenue estimates D.R. Horton losses weigh on homebuilders Nasdaq hits record closing high at 18,712 Indexes: Nasdaq up 0.78%, S&P up 0.16%, Dow down 0.36% Oct 29 (Reuters) - The Nasdaq scored a record closing high and the S&P 500 rose on Tuesday, while the Dow fell as investors digested a host of corporate earnings and awaited Google-parent Alphabet's (GOOGL.O) , opens new tab results that came after the market close. Alphabet, one of the so-called "Magnificent Seven" megacap technology stocks, reported quarterly revenue that beat estimates. This is the busiest week for S&P 500 earnings in the quarter, with eyes on five of the "Magnificent Seven" companies that are reporting results. The group's results will be crucial to determining whether Wall Street can sustain the optimism around technology and artificial intelligence that has lifted indexes to record highs this year. "I think one of the things the market is digesting is the idea of some degree of convergence in earnings growth between the high fliers - the Magnificent Seven that are obviously very high in terms of market weighting - versus the rest of the market," said Bill Merz, head of Capital Markets Research for U.S. Bank's asset management group. The Nasdaq Composite (.IXIC) , opens new tab rose 145.56 points, or 0.78%, to 18,712.75, breaking the previous closing record in July. The S&P 500 (.SPX) , opens new tab climbed 9.45 points, or 0.16%, to 5,832.97. The Dow Jones Industrial Average (.DJI) , opens new tab fell 154.52 points, or 0.36%, to 42,233.05. Investors sifted through a deluge of corporate earnings. Vans parent VF Corp (VFC.N) , opens new tab jumped 27% after the apparel company reported its first profit in two quarters. D.R. Horton (DHI.N) , opens new tab fell 7.2% on Tuesday after the homebuilder forecast 2025 revenue below estimates. Other homebuilders lost ground, dragging the PHLX Housing index (.HGX) , opens new tab down 2.5%. Ford (F.N) , opens new tab slumped 8.4% a day after the automaker said it expected to hit the lower end of its annual profit forecast. Visa (V.N) , opens new tab and restaurant chain Chipotle Mexican Grill (CMG.N) , opens new tab posted earnings after the close. Meanwhile, the Labor Department's JOLTS survey showed job openings were at 7.44 million in September, compared with estimates of 8 million, a Reuters poll of economists showed. A separate report showed consumer confidence at 108.7 in October, above the estimated 99.5. Among sectors, communication services (.SPLRCL) , opens new tab, which includes Alphabet and Meta, was the top gainer, while utilities (.SPLRCU) , opens new tab dropped 2.1%. Gains were limited as the benchmark U.S. 10-year Treasury yield touched 4.3% for the first time since early July. Investors are anticipating a volatile few weeks with more corporate earnings, Middle East tensions, and the Nov. 5 U.S. elections followed by the Federal Reserve's policy-setting meeting. Declining issues outnumbered advancers by a 1.78-to-1 ratio on the NYSE. There were 176 new highs and 75 new lows on the NYSE. The S&P 500 posted 19 new 52-week highs and no new lows while the Nasdaq Composite recorded 93 new highs and 70 new lows. Volume on U.S. exchanges was 12.59 billion shares, compared with the 11.5 billion full-session average over the last 20 trading days. Sign up here. https://www.reuters.com/markets/us/futures-tread-water-amid-earnings-deluge-ford-falls-2024-10-29/

2024-10-29 20:43

TSX ends down 3.11 points at 24,562.55 Posts sixth decline in seven trading days Utilities sector falls 1.8% Materials group adds 1.5% as gold rises Oct 29 (Reuters) - Canada's commodity-linked main stock index ended slightly lower on Tuesday as the price of oil added to the previous day's sharp decline and increased long-term borrowing costs weighed on interest-rate sensitive stocks. The S&P/TSX composite index (.GSPTSE) , opens new tab ended down 3.11 points, or 0.01%, at 24,562.55, its sixth decline in seven trading days since notching a record closing high. The Canadian 10-year yield touched a three-month high at 3.320% before pulling back to 3.270%, with the market tracking moves in U.S. Treasury yields before the U.S. presidential election next Tuesday. "Treasury yields in the U.S. are still creeping up so that can hit the interest rate-sensitive sectors," said Colin Cieszynski, chief market strategist at SIA Wealth Management. The utilities sector, which includes high-dividend paying stocks that become less attractive as bond yields rise, fell 1.8%, while real estate was down 0.4% and financials ended 0.2% lower. Energy lost 0.7% as the price of oil settled 0.25% lower at $67.21 a barrel on a report that Israeli Prime Minister Benjamin Netanyahu will hold a meeting for a diplomatic solution to the war in Lebanon. The materials group, which includes fertilizer companies and metal mining shares, helped limit the market's decline. It rose 1.5% as the price of gold climbed to a record high. Sign up here. https://www.reuters.com/markets/tsx-futures-inch-up-commodity-boost-us-earnings-focus-2024-10-29/