2024-10-23 11:52

NextEra's renewables unit sees 24 GW backlog in Q3 NextEra Energy Partners reports $40 million loss due to higher interest payments NextEra's Duane Arnold plant uses a simpler boiling water reactor Oct 23 (Reuters) - NextEra Energy (NEE.N) , opens new tab is conducting engineering studies and speaking with federal regulators about the possible restart of its Duane Arnold nuclear power plant in Iowa, company executives said on Wednesday. Growing power demand from AI data centers, and the electrification of buildings and transportation, has propelled the country's electric utility industry and led to unprecedented power contracts. NextEra is assessing the Duane Arnold plant and speaking with regulators with the Nuclear Regulatory Commission and local groups, CEO John Ketchum said on a company earnings call. "We're very interested in recommissioning the plant," said Ketchum, adding that the site uses a boiling water reactor, which can be simpler than other systems to revive. "That gives us optimism of being able to do this at an attractive price and without as much risk," Ketchum said. After struggling for decades with poor economics and safety concerns that led 13 reactors to shut since 2012, the nuclear industry is experiencing a revival driven by a sudden turnaround in electricity demand. Two shut U.S. nuclear power plants, including Three Mile Island in Pennsylvania, are in the process of being restarted. If the plants are resurrected, it will be the first re-launch of a retired reactor. The longer a nuclear plant is shut, the higher the chances of corrosion and other issues that could prevent a restart, and analysts broadly project that only a few of the country's shut nuclear sites could be relaunched. "We think NextEra's Duane Arnold nuclear plant is among those in the U.S. that is most likely to restart given it closed fairly recently," said Mike Doyle, senior equity analyst for utilities at Edward Jones, citing the plant's August 2020 closure. Still, NextEra said it was focused on growing its renewable energy business. Nuclear power uses uranium to produce carbon-free electricity and is not renewable like wind and solar power. NextEra, which includes the world's largest renewables business and one of the biggest U.S. regulated electric utilities, has entered into "incremental framework agreements" with Fortune-50 to develop 10.3 gigawatts renewable energy and storage. The company's third-quarter profit beat Wall Street estimates on Wednesday, helped by strength in its renewables unit. The S&P index tracking utilities (.SPLRCU) , opens new tab jumped 18.4% in the third quarter, compared to a 5.5% rise in the S&P 500 (.SPX) , opens new tab. NextEra's renewables arm, NextEra Energy Resources, projected a backlog of 24 gigawatts (GW) in the third quarter, up from nearly 22.6 GW in the second quarter. The company's regulated utilities business, Florida Power & Light, reported net income of $1.29 billion, compared with $1.18 billion a year earlier. NextEra's overall quarterly revenue of $7.57 billion, however, missed estimates of around $8.10 billion, according to analysts' estimates compiled by LSEG. The company, which is based in Florida, maintained its 2024 adjusted earnings-per-share forecast. Executives said they expect EPS in 2025 to be in a range of $3.45 to $3.70. On an adjusted basis, NextEra earned $1.03 per share in the quarter, compared with estimate of 98 cents, according to data compiled by LSEG. NextEra Energy Partners (NEP.N) , opens new tab, a unit of the company created to acquire, manage and own contracted energy projects, said it would repower an additional 225 megawatts (MW) of wind facilities, bringing the total backlog of wind repowerings to around 1.6 GW through 2026. Repowering upgrades existing wind farms to produce more power from the sites. However, the unit reported a loss of $40 million due to higher interest payments and a loss on some continuing operations, compared to year-ago net income of $53 million. Its shares were down 11.5% in early morning trade. Sign up here. https://www.reuters.com/business/energy/nextera-beats-third-quarter-profit-estimates-renewables-strength-2024-10-23/

2024-10-23 11:51

Oct 23 (Reuters) - Coca-Cola (KO.N) , opens new tab is aiming to hit the higher end of its organic sales forecast for 2024 as growing demand for its higher-priced sodas and juices in the U.S. helped it post a surprise rise in third-quarter sales on Wednesday. The beverage company has been experimenting with pack sizes to drive growth. It offered 12-ounce slim cans to attract customers with tight budgets in the U.S., while launching reformulated versions of its Sprite and Fanta in India and South Korea. North America revenue rose 12% and it expects annual organic sales to grow about 10% compared with a prior view of 9% to 10% rise. Its average selling price rose 10%, while unit case volumes fell 1%. Shares of the company, however, slipped 0.5% in premarket trading as Coca-Cola reiterated its growth forecast for annual adjusted profit of 5% to 6% despite price hikes. "The weakness of the stock a little bit here is that they're leading more on price ... (while) guidance is just being maintained here," said Christian Greiner, senior portfolio manager at F/m Investments, which owns shares in Coca-Cola. Investors were expecting growth in volumes, which was impacted by price-conscious consumers in the Middle East and China, he said. Coca-Cola's revenue in Europe, the Middle East and Africa fell 7% and in the Asia Pacific region it dropped 4%. Earlier this month, rival PepsiCo (PEP.O) , opens new tab CEO Ramon Laguarta said price increases and borrowing costs were hurting consumer budgets. The Frito-Lay chips maker cut its annual sales forecast after posting quarterly revenue below expectations. Coca-Cola's net revenue rose 0.3% to $11.95 billion. Analysts had expected a 2.62% drop to $11.60 billion, according to data compiled by LSEG. The company's adjusted profit came in at 77 cents per share, compared with estimates of 74 cents. Sign up here. https://www.reuters.com/business/retail-consumer/coca-cola-expects-revenue-high-end-previous-forecast-2024-10-23/

2024-10-23 11:45

Oct 23 (Reuters) - Power equipment maker GE Vernova (GEV.N) , opens new tab reported higher third-quarter revenue on Wednesday as strong demand for power and electrification equipment and services helped offset weakness in the wind business. The global push for a transition to renewable energy, along with an anticipated surge in power demand due to mushrooming data centers, is set to benefit power services firms like GE Vernova. The company booked a 28% rise in orders in its power segment on higher demand for gas power services and equipment, while its electrification revenue rose 22%. GE Vernova reported an 8% rise in overall third-quarter revenue to $8.9 billion, which came ahead of analysts' expectations of $8.78 billion, according to data compiled by LSEG. Despite the higher revenue, shares fell about 3% premarket as the company's adjusted core profit fell short of market expectations, hurt by the wind segment underperformance. Its adjusted core profit came in at $243 million. Analysts on average had expectations of about $276 million. The company's wind business has faced several challenges, including cost inflation and supply chain issues. It has also struggled with delays in two major offshore projects due to the failure of turbine blades. The wind segment posted a wider core loss, partly due to additional costs related to those two projects and a 19% decline in orders due to lower orders from onshore projects outside North America. The company reported one fatality during the quarter. Sign up here. https://www.reuters.com/business/energy/ge-vernova-posts-higher-q3-revenue-power-demand-growth-2024-10-23/

2024-10-23 11:33

Escalating uncertainties fuel demand for CME's hedging products Record quarterly ADV of 28.3 mln contracts in Q3 Strong double-digit growth across all CME's asset classes in Q3 Q3 2024 best quarter in CME history Oct 23 (Reuters) - CME Group (CME.O) , opens new tab reported a rise in third-quarter profit on Wednesday, as uncertainty around U.S. monetary policy and geopolitical events sent investors into the derivatives markets to manage risks, bolstering trading volumes for the exchange. Trading volumes at exchanges tend to jump during periods of heightened uncertainty as clients increase their hedging activities. This drove double-digit growth across all CME asset classes in the reported quarter. The company's total average daily volume (ADV) jumped 27% from a year earlier to a quarterly record of 28.3 million contracts. The ADV of interest rate products, used to hedge against volatility stemming from changes in benchmark interest rates, jumped 36% to a quarterly record of 14.9 million contracts. "Our record-breaking performance in the third quarter demonstrated the continued growing need for risk management globally," said Terry Duffy, chief executive officer, at CME Group on an analyst call. "We achieved this growth without lowering any fees or introducing any new incentive programs for these products." CME shares were up 0.3% in early trading following the results. Equities trading was another bright spot as volatility sparked by a sell-off in August, following a weaker-than-expected July jobs report, bolstered volumes. CME's equities ADV jumped 17% to 7.4 million contracts in the quarter. Meanwhile, CME's energy ADV jumped 21% to 2.6 million contracts. Mounting tensions in the Middle East have increased volatility in commodity and energy markets. Clearing and transaction fees, CME's chief source of revenue, jumped 19.5% to $1.30 billion, while market data revenue rose 6.3% to $178.2 million. Total revenue jumped 18.4% to record $1.6 billion, beating analysts' expectations of $1.58 billion. Net income attributable to common shareholders rose to $901.3 million from $740.8 million, a year earlier. CME shares have risen 7.4% so far this year, underperforming the 22.7% jump in the benchmark S&P 500 (.SPX) , opens new tab index. Duffy said opposing views on Fed policy should provide further tailwinds for interest-rate trading, while continued uncertainty around the U.S. election and geopolitics will drive liquidity and risk management needs across rates and other asset classes. Sign up here. https://www.reuters.com/business/finance/cme-group-profit-rises-trading-strength-2024-10-23/

2024-10-23 11:15

A look at the day ahead in U.S. and global markets from Mike Dolan The dollar continues to ride higher on the back of an anxious pre-election climb in U.S. Treasury yields, notching its best levels in almost three months against the euro and yen on starkly contrasting economic and interest rate pictures. With the International Monetary Fund's annual meeting underway and G7 finance chiefs and central bankers gathering, the exceptional performance of the U.S. economy was underlined in updated IMF global forecasts on Tuesday. The IMF revised its 2024 and 2025 U.S. GDP growth forecasts upward yet again - by two-tenths of a percentage point to 2.8% for this year and by three-tenths of a point to 2.2% for 2025. While world growth forecasts at large have remained little changed, the U.S. GDP outlook for this year and next has now been lifted by a cumulative 0.7 and 0.5 points respectively since January. And only Canada among the G7 is expected to grow faster than the United States next year. With U.S. economic surprise indexes at their most positive since April, this sort of backdrop partly explains the sharp rise in Treasury yields this month and the rising 'terminal rate' for Federal Reserve easing expectations. The other driver of both Treasury yields and the dollar is the approach of Nov. 5's election, where betting markets now lean heavily toward a win for Republican Donald Trump despite some concerns about distortions and manipulation by small groups of deep-pocketed punters. Trump's tax cuts and tariff plans, alongside rising speculation of a Republican clean sweep of Congress to boot, have unnerved investors about the implications for a U.S. budget deficit already at 6.4% of GDP as well as for domestic inflation and overseas growth. With a 20-year bond auction in the wings on Wednesday, 10-year yields hit their highest level since July and, at 4.24%, have now climbed 25 basis points in just a week. The New York Fed's estimate of a 10-year Treasury 'term premium' - a measure of compensation for risk investors demand to hold long-term debt - topped 20bps for the first time this year. And yet, election bets may be just a little wary still of whiplash - not least given the dramatic change of fortunes and polling already seen over the summer. Opinion polls still don't suggest any concrete outcome, the latest Reuters/IPSOS opinion poll tracker this week still puts Democrat Kamala Harris three points ahead nationally and other polling shows a dead heat in the swing states. Still, beyond the election, the dollar picture at least is very much flattered by the interest rate outlook overseas. The Bank of Canada is expected to cut its interest rates again later on Wednesday by up to 50bps. And the euro was also hit on Wednesday by a Reuters sources story saying European Central Bank policymakers have begun to debate whether interest rates need to be lowered enough to start stimulating the economy. That suggests ECB rates may well return below estimates of 'neutral' - currently estimated anywhere between 2% and 2.5% - and contrasts with rising assumptions of a U.S. 'terminal rate' around 3.5%. The yen , meantime, continued to weaken past 152 per dollar for the first time since July ahead of the weekend election in Japan. Ructions in the rates markets have sent a shot across the bow of lofty stock markets this week, with Wall Street indexes (.SPX) , opens new tab stalling on Tuesday and futures in the red again on Wednesday ahead of the bell. The earnings season is reaching full throttle in the background, with Tesla (TSLA.O) , opens new tab, Boeing (BA.N) , opens new tab and IBM (IBM.N) , opens new tab topping a packed diary later today. In Europe, Deutsche Bank shares (DBKGn.DE) , opens new tab fell back up to 3% after the German banking giant raised its loan-loss provisions forecast against the backdrop of a weak German economy - even as it returned to profit in the third quarter and cut reserves for investor lawsuits over its Postbank division. And shares of McDonald's (MCD.N) , opens new tab fell nearly 6% in premarket trading after an E. coli outbreak linked to the restaurant chain's Quarter Pounder hamburgers resulted in the death of one person and sickened 49 people in the U.S. Key developments that should provide more direction to U.S. markets later on Wednesday: * Bank of Canada policy decision, news conference from governor Tiff Macklem * US September existing home sales, Federal Reserve publishes Beige Book of economic conditions, euro zone October consumer confidence * G7/G20 finance chiefs meet on at International Monetary Fund and World Bank Annual Meetings in Washington, including speaking engagements with Bank of Japan Governor Kazuo Ueda, Bank of England Governor Andrew Bailey, European Central Bank President Christine Lagarde and ECB chief economist Philip Lane, and German Finance Minister Christian Lindner * Federal Reserve Board Governor Michelle Bowman, Richmond Fed President Thomas Barkin speak * US corporate earnings: Tesla, Boeing, IBM, Ameriprise, Northern Trust, AT&T, Boston Scientific, General Dynamics, Thermo Fisher Scientific, Coca Cola, Nextera Energy, Hilton Worldwide, United Rentals, O'Reilly Automotive, Lam Research, Newmont, Las Vegas Sands, Rollins, Align Technology, CME etc * US Treasury auctions $13 billion of 20-year bonds Sign up here. https://www.reuters.com/markets/us/global-markets-view-usa-2024-10-23/

2024-10-23 10:24

MUMBAI, Oct 23 (Reuters) - The Indian rupee slipped to its weakest closing level on record on Wednesday pressured by a buoyant dollar but the local unit managed to fare better than its Asian peers supported by dollar sales from state-run banks. The rupee ended at 84.08 against the U.S. dollar, its weakest closing level on record, and marginally lower than its closing level of 84.0775 in the previous session. The dollar index was up 0.2% and touched a peak of 104.37, its highest level since early August. Asian currencies declined between 0.1% and 0.5% on the day. Rising odds of a victory for Donald Trump in the upcoming U.S. presidential election and investors calibrating bets toward a gradual reduction of interest rates by the Federal Reserve have boosted the dollar and U.S. bond yields. The dollar index has risen more than 3% in October so far while the 10-year U.S. Treasury yield touched a three-month peak of 4.24% on Wednesday. "The worst outcome for the U.S. bond market (prices) and most bullish outcome for the U.S. dollar, at least initially, would be a win for Donald Trump accompanied by a “Red Sweep” where the Republicans take control of Congress so he can fully implement the fiscal policy proposals," MUFG Bank said in a note. While near-dated implied volatilities of Asian currencies like the offshore Chinese yuan and the Korean won have risen ahead of the U.S. election, the rupee is not expected to see a jump in volatility as traders expect the Reserve Bank of India to cap outsized moves on either side. The central bank's routine interventions have also ensured that the rupee has averted sharp losses even as outflows from local stocks surged. Foreign investors have pulled out over $8.5 billion from local stocks in October so far on a net basis. Benchmark Indian equity indices ended slightly in the red on Wednesday, logging their third consecutive day of losses. Sign up here. https://www.reuters.com/markets/currencies/rupee-slips-record-closing-low-fares-better-than-regional-peers-2024-10-23/