2026-02-04 19:06

Plan in line with Trump goal to quadruple US nuclear power Critics say reorganization risks rushing licenses WASHINGTON, Feb 4 (Reuters) - The U.S. nuclear power regulator said on Wednesday it is undergoing a reorganization in line with President Donald Trump's goals on speeding up licensing of nuclear reactors. The Nuclear Regulatory Commission said in a release it will appoint leaders for the reactor safety program and the staff's development of a new organizational chart and management plan within 60 days. It will strive to implement the plan by the end of September, the NRC said. Sign up here. Trump wants to quadruple U.S. nuclear power capacity to 400 gigawatts by 2050 as electricity demand surges for the first time in decades, driven by data centers for AI and cryptocurrencies. Last May, he ordered the NRC to cut down on regulations and fast-track new licenses for reactors, seeking to shorten a multi-year process to 18 months. "We are in one of the most consequential periods in the NRC's history, and this reorganization enables us to meet the moment with more efficient and timely decision making," NRC Chairman Ho Nieh said in a release. The reorganization focuses on accelerating the safe deployment of nuclear technologies and achieving greater consistency in the implementation of agency safety programs across regional offices, the chairman said. The agency will reorganize around business lines of new reactors, operating reactors and nuclear materials and waste, the NRC said. Seth Cohen, chief counsel for nuclear policy at the Department of Energy, told an American Nuclear Society conference in November that the number of personnel at the NRC would "almost certainly" grow in coming years to keep up with licensing. When asked on Wednesday if the NRC would grow, a spokesperson said the agency was in the early stages of implementing the reorganization. Trump's push to speed up reactor approvals comes despite criticism including from Ernest Moniz, a nuclear physicist and former Department of Energy Secretary, who has said reorganizing and reducing the independence of the NRC could lead to the hasty deployment of advanced reactors with safety and security flaws. https://www.reuters.com/business/energy/us-nuclear-power-regulator-plans-changes-line-with-trump-goals-reactors-2026-02-04/

2026-02-04 18:44

Software sector sees worst selloff since 2022, few buyers emerge Options traders show defensive stance, avoiding dip-buying in software shares Microsoft attracts buyers despite sector's bearish tone, short interest rises NEW YORK, Feb 4 (Reuters) - The software sector's deepening selloff on Wednesday failed to lure bargain hunters, with the dip-buying reflex that has rescued countless tech routs conspicuously absent. After a broad selloff on Tuesday that saw the S&P 500 software and services index (.SPLRCIS) , opens new tab fall nearly 4%, the sector slipped another 1% on Wednesday, down for a sixth-straight session, extending a decline that has shifted from AI optimism to disruption fears. Sign up here. Unlike other recent market slides, where investors have been quick to snap up battered shares, the worst selloff in the sector since 2022, when rising rates hammered software stocks, invited few buyers. "In general, our customers have not been as eager to buy dips in software as they are for precious metals and semis," Steve Sosnick, chief strategist at Interactive Brokers, said. "While it’s possible that our clients are buying dips in software, it is by no means in the forefront of their activity," he said. Options traders also showed a lack of appetite for scooping up the battered software names. "Software continues to trade heavy, and the options flow remains overwhelmingly defensive," Chris Murphy, co-head of derivative strategy at Susquehanna Financial, noting defensive activity in the options on iShares Expanded Tech-Software Sector ETF (IGV.Z) , opens new tab and ARK Innovation ETF (ARKK.P) , opens new tab. IGV shares were down 3%, while the ARKK ETF fell nearly 7%. "In IGV and ARKK, we’ve seen traders pressing downside exposure rather than stepping in with dip-buying interest," Murphy said. In general, the tone in software remains defensive, Murphy said. Interactive Brokers' Sosnick said Microsoft, while not purely a software company, was one notable exception to the generally bearish tone in the sector, with the company drawing buyers. Microsoft shares, down about 15% since the company reported results on January 28, were up about 1% on Wednesday. Still, short sellers, who aim to sell borrowed shares to buy them back at a profit, were emboldened by the sharp declines in the sector. These traders were selling shares even as stocks came under pressure, Leon Gross, research analyst at S3 Partners, said. "Historically, Microsoft behaves like a reversal stock, with shorts covering on the way down. Now it is trading like a momentum‑driven, distressed name, with shorts increasing into weakness," Gross said, noting that Microsoft short interest had increased by about 20% over the past week. https://www.reuters.com/business/dip-buyers-go-missing-software-selloff-slams-stocks-2026-02-04/

2026-02-04 18:40

BRUSSELS, Feb 4 (Reuters) - The European Union's new agency formed to fight dirty money said on Wednesday it was on track to be fully operational in 2028, as it set out its plan to tackle emerging illicit finance risks including crypto and "novel payment channels". The Anti-Money Laundering Authority (AMLA) is being established in Frankfurt, creating the first Europe-wide body to fight illegal financial flows. Sign up here. From 2028, AMLA will directly supervise 40 EU financial institutions judged to present the biggest risk. AMLA will finalise its methodology for its risk assessment in 2026 and start the selection process in 2027, it said in a 2026-2028 plan on Wednesday. It has already met its initial 2025 target of hiring 120 of the 432 staff it aims to employ, AMLA said. The idea of the EU-wide agency was proposed in 2021, after a major money-laundering scandal highlighted the inadequacy of the bloc's defences against illicit finance. "AMLA marks a new chapter in Europe’s fight against money laundering and terrorism financing, transitioning from fragmented national responses to a unified, risk-based system tailored to the complexity of today’s criminal networks," AMLA's chair, Bruna Szego, wrote in a report setting out the plan. "The challenges ahead — from crypto-asset supervision to cross-border criminal innovation — require an Authority that is both technically excellent and anchored in sound governance." EMERGING FINANCIAL CRIME RISKS The plan cited developments in the crypto-asset market or novel payment channels as examples of emerging financial crime risks. Money launderers received at least $82 billion worth of cryptocurrencies last year, up from $10 billion five years earlier, researchers estimate. Still, the "vast majority" of terrorist financing uses regular money, the Financial Action Task Force has said. Speaking on the sidelines of a conference in Brussels on Tuesday, AMLA board member Derville Rowland told Reuters that the agency would follow the evidence to locate the biggest money-laundering risks, and had yet to decide how much of a focus crypto would be. "Certainly when we look at money-laundering risk it's present in some sectors more than others. For definite, crypto is an area where technology and secrecy can coincide to produce a high money-laundering risk," she said. https://www.reuters.com/sustainability/boards-policy-regulation/europes-anti-money-laundering-body-set-be-fully-operational-2028-2026-02-04/

2026-02-04 18:23

Bessent says there are 'varying opinions' in Trump administration Supreme Court consideirng Trump's bid to fire Fed governor Lisa Cook Bessent says Fed lost Americans' trust over inflation WASHINGTON, Feb 4 (Reuters) - U.S. Treasury Secretary Scott Bessent said on Wednesday he has no opinion on whether the president has a constitutional authority to fire a Federal Reserve chair or board member because of a monetary policy disagreement, but he considers the central bank an independent agency. Bessent told a U.S. House of Representatives Financial Services Committee hearing that there were "varying opinions" within the administration about a legal doctrine called the "unitary executive" theory that envisions vast executive authority for a president. Sign up here. "There are varying opinions in the administration," Bessent told lawmakers, saying he was not a lawyer and the issue would have to be decided by the U.S. Supreme Court. The nation's highest court is now considering President Donald Trump's unprecedented bid to fire Federal Reserve Governor Lisa Cook in a case that has put a sharp spotlight on the central bank's independence. During arguments last month, the justices indicated they are unlikely to grant the Trump administration's request to lift a judge's order barring the president from immediately firing Cook while her legal challenge continues to play out. Since the Fed was created in 1913, no president has tried to oust an official from the central bank. Conservative and liberal justices debated what constitutes adequate "cause" under ‌federal law to remove a Fed official and what procedures are needed to ensure fairness for Cook. The justices expressed unease about the ramifications for the Fed's cherished independence from political influence if they endorse the Trump administration's arguments that the president acted within his powers in seeking to remove Cook. Asked if he viewed the Fed as an executive or legislative agency, Bessent said, "I consider it an independent agency." "We will see," he continued. "I do believe that the Federal Reserve has to maintain credibility and be like Caesar's wife, beyond reproach." In a separate exchange, Bessent told committee members that the independence of the Federal Reserve was based on Americans' trust of the central bank, which it lost because it allowed inflation to get out of control and "ravage" their incomes. Trump's broad assertions of power appear to be advancing an aggressive version of the "unitary executive" legal doctrine, arguing that Article II of the U.S. Constitution, which delineates presidential powers, gives the president sole authority over the federal government's executive branch. It envisions robust powers even when Congress has sought to impose certain limits, such as restricting a president's ability to fire the heads of some independent agencies. Under the Constitution, the U.S. government is divided into the executive, legislative and judicial branches - set up in the 18th century to ensure checks and balances within the American system. Advocates of the unitary executive theory argue that presidents legally can remove any executive branch official, including heads of independent agencies, even if such action would violate job protections guaranteed under other laws. https://www.reuters.com/world/us/bessent-says-he-has-no-opinion-trump-authority-fire-fed-officials-over-policy-2026-02-04/

2026-02-04 18:19

EU looks at using trade, finance leverage in climate talks Bloc won little movement on fossil fuels at COP30 Some countries weigh rejecting weak COP climate deals in future BRUSSELS, Feb 4 - The European Union is mulling a new strategy in its diplomatic efforts on climate change after a bruising U.N. summit last year where it struggled to rally support for faster, more ambitious action to cut planet-heating emissions, an internal EU document seen by Reuters showed. Negotiations at the COP30 event in Brazil in November on how to address climate change were dealt a geopolitical blow earlier in the year when U.S. President Donald Trump pulled the world's biggest economy out of the talks. Sign up here. The summit ended with a deal to triple finance for poorer nations to adapt to climate change, but no new global commitments to reduce fossil fuel use or cut planet-heating emissions faster - terms that had prompted EU countries to consider walking out in the final hours of the talks. The 27-country EU is now assessing how to strengthen its strategy for future negotiations by using its trade, finance and development leverage in climate talks, the document showed. EU climate ministers will discuss the ideas at a meeting in Cyprus on Friday. "The EU encountered increasing difficulty in lining up international support for translating its high level of ambition into concrete negotiation outcomes," the document said, referring to the EU's attempts to secure a stronger deal on cutting emissions. It said changing geopolitical dynamics had contributed to "a feeling that (the EU) was largely isolated in the final phases of negotiations" at COP30. The EU, alongside climate-vulnerable island states and some Latin American countries, had pushed to address fossil fuels in the COP30 deal - a proposal blocked by countries including top oil exporter Saudi Arabia. But the EU had also faced criticism from poorer nations for resisting an increase in climate funding until late in the negotiations. Andre Correa do Lago, Brazil's president of COP30, said countries' assessments of how successful the summit had been reflected different priorities in how they tackle climate change. "The word 'ambition' doesn't belong to a vocabulary that only exists in the EU. When you say 'ambition' in the EU, it's mitigation. When you say 'ambition' in India, it's finance. When you say ambition in other countries, it's technology," he told Reuters. NEW STRATEGY The EU paper suggested a failure to leverage its trade and development tools had "limited the EU's ability to reinforce its positions and to shape incentives in the negotiating rooms and beyond". A spokesperson for Cyprus, which holds the EU's rotating presidency and drafted the document, confirmed the discussions on the bloc's role in international climate negotiations. "Our aim is to keep the momentum and continue reflecting on this important matter, with a view to strengthening the effectiveness of the COP31 negotiations," the spokesperson said. Many of the EU's trade deals include incentives on climate and low-carbon energy. An EU-India trade deal last month included 500 million euros ($590.90 million) in support to help India reduce emissions. "We're in a new era which is more transactional," one EU diplomat said, adding that some governments also wanted a clearer EU line on when to reject future COP deals that it deems too weak. The EU is struggling to maintain support for ambitious climate action among its own member countries, and last year agreed a new climate target just days before COP30 began, owing to disagreements between governments over how ambitious it should be. ($1 = 0.8462 euros) https://www.reuters.com/sustainability/cop/eu-rethinks-climate-diplomacy-after-bruising-cop30-summit-document-shows-2026-02-04/

2026-02-04 17:55

Bessent says Trump's tariffs are not causing inflation As hedge fund manager, he had called tariffs inflationary Bessent has testy exchanges with Democrats at hearing WASHINGTON, Feb 4 (Reuters) - U.S. Treasury Secretary Scott Bessent on Wednesday said he was wrong when he and his Key Square investment firm told partners in January 2024 - before Donald Trump won election to a second stint as president - that "tariffs are inflationary." Grilled about the document during an often-heated House of Representatives Financial Services Committee hearing, Bessent said he wished to correct the record. Sign up here. "If I was mistaken, I want to correct it. And I was also mistaken when I said the tariffs could be inflationary," Bessent, a Trump appointee, told lawmakers. 'THE DOG THAT DIDN'T BARK' Bessent said the U.S. economy is growing and inflation is coming down despite a slew of tariffs imposed by Trump since returning to office in January 2025. "So tariff inflation was the dog that didn't bark," Bessent told lawmakers. U.S. data last month showed a larger-than-expected rise in the Producer Price Index in December, suggesting inflation could pick up in the months ahead. Federal Reserve Chair Jerome Powell said last week that tariff pass-through to goods prices by companies was holding inflation at elevated levels. Democrats used the hearing, nominally about the Treasury's Financial Stability Oversight Council annual report, to hammer Bessent over tariffs. Representative Maxine Waters, the Financial Services Committee's top Democrat, took the first crack at Bessent on the matter, resulting in a stormy exchange reminiscent of her clashes as the panel's chair with Trump's first-term Treasury chief, Steven Mnuchin. Waters referred to the same Key Square letter to investors, which said that tariff inflation would strengthen the dollar, asking Bessent to answer "yes" or "no" whether tariffs cause inflation. Bessent said San Francisco Federal Reserve data shows that tariffs do not cause inflation. That prompted Waters to say that prices for coffee and bananas rose after Trump imposed tariffs on countries growing these crops, and that tariffs on steel, lumber and appliances were raising costs for homebuilders, adding to housing inflation. When Bessent shot back that a surge of immigrants was responsible for inflation in housing costs, Waters repeated the refrain, "Reclaiming my time," then asked the committee's Republican chair French Hill: "Can you shut him up?" Bessent's comment that he was wrong about tariffs and inflation came later in the hearing when Democrat Sean Casten pressed him on whether he wanted to correct his remarks to Waters, or his letter to investors. VIEWS ON FED INDEPENDENCE Democrats also sought to press Bessent on whether he supports Federal Reserve independence or believes that Trump has a constitutional right to fire the Fed chair or other board members over policy disputes. Bessent responded that he has no opinion about firing authority but considers the central bank an independent agency. However, Bessent told the committee that there were "varying opinions" within the administration about a legal doctrine called the "unitary executive" theory that envisions vast executive authority for a president. Bessent said he is not a lawyer and the issue will have to be decided by the U.S. Supreme Court, which last month heard arguments concerning Trump's attempt last year to fire Fed Governor Lisa Cook. A ruling is expected by the end of June. https://www.reuters.com/world/china/treasurys-bessent-says-he-was-wrong-when-he-said-tariffs-could-be-inflationary-2026-02-04/