2024-05-03 13:28

FRANKFURT, May 3 (Reuters) - RWE (RWEG.DE) New Tab, opens new tab is open to talks with the German government about potentially moving its lignite assets to a state-backed foundation, but it would be up to Berlin to make the first move, the company's chief executive said on Friday. Some investors and analysts, including Enkraft and Bernstein, have said that removing coal from RWE's portfolio would sharpen the group's profile as an energy player focused on renewables and help to revive its shares. However, CEO Markus Krebber has repeatedly said a separation or sale of the assets - which are still profitable - would take too long, be too complex and not be in line with the group's responsibilities to the thousands of workers who mine lignite and operate plants. The German government has in the past raised the possibility of creating a foundation with a view to ensuring they are phased out as smoothly as possible. "We have ... made it clear that we are ready for talks on this. However, it is now up to politicians to put the issues on the agenda," Krebber told shareholders during the group's annual general meeting. Krebber also said that any sale or separation of the assets could only happen with Berlin's consent, adding political support for such a move was "hardly to be expected". Ingo Speich, at RWE shareholder Deka, said waiting for Berlin to make the first step was not a solution, and that the group should review the potential uplift to its valuation from separating the coal assets. Enkraft, which holds around one million shares in RWE, said spinning off coal remained the group's biggest value creating measure by far, but "management continues to consistently ignore this issue". Sign up here. https://www.reuters.com/business/energy/rwe-open-talks-about-lignite-foundation-up-berlin-start-process-2024-05-03/

2024-05-03 13:25

JOHANNESBURG, May 3 (Reuters) - Anglo American (AAL.L) New Tab, opens new tab CEO Duncan Wanblad is meeting on Friday South African mines minister Gwede Mantashe for the first time since the miner rejected BHP Group's (BHP.AX) New Tab, opens new tab $39 billion takeover bid, a source familiar with the matter told Reuters. BHP, the world's biggest-listed mining group, is privately talking to investors as it weighs up its next move after Anglo's rejection of its initial proposal. Commodities giant Glencore is also studying an approach for Anglo, sources told Reuters, a development that could spark a bidding war for the 107-year old mining company. Anglo declined to comment on the meeting with Mantashe. The source did not give details of the meeting. BHP has proposed that Anglo sell its shares in units Anglo Platinum (Amplats) and Kumba Iron Ore as an option to exit the South African assets it does not want included in the deal. Anglo unanimously rejected the proposal as opportunistic and significantly undervaluing the company and its future prospects. Its investors are concerned that they stand to lose heavily by holding shares in the South African subsidiaries, if they are un-bundled. There is a risk that South African regulatory authorities, particularly its central bank, could be concerned about capital outflows from foreign investors not willing to hold the shares, the source said. BHP CEO Mike Henry, who is in South Africa to canvass views from investors on the company’s proposed offer to Anglo, was in "listening only mode" during a meeting with a Cape Town-based fund manager on Friday, another source told Reuters. BHP executives also held a call with South Africa's Public Investment Corporation earlier in the week, a separate source said. Anglo has said it will meet its top investors to hear their views on BHP's approach. Sign up here. https://www.reuters.com/markets/deals/anglo-ceo-meets-safrica-mines-minister-after-bhps-takeover-proposal-2024-05-03/

2024-05-03 13:16

May 3 (Reuters) - U.S. job growth slowed more than expected in April and annual wage gains cooled, signs of a looser labor market which are good news for markets and the Federal Reserve that will likely require more such signals before pivoting from a higher for longer policy. Nonfarm payrolls increased by 175,000 jobs last month, the Labor Department said in its employment report on Friday. March was revised up to show payrolls rising by 315,000 jobs instead of 303,000. Economists polled by Reuters had forecast payrolls advancing by 243,000. The unemployment rate rose to 3.9% from 3.8%. Wages increased 3.9% in the 12 months through April after rising 4.1% in March. read more MARKET REACTION: STOCKS: S&P 500 e-mini futures added to gains and were up 1.1% pointing to a strong open on Wall StreetBONDS: The U.S. Treasury 10-year yield fell and was last at 4.50%; Two-year yields fell to 4.772%FOREX: The dollar index retreated 0.61%, while the euro was up 0.62% COMMENTS: TIMOTHY CHUBB, CHIEF INVESTMENT OFFICER, GIRARD, WEST CHESTER, PENNSYLVANIA "Market response is a sigh of relief. It was important to see wage growth moderate and not accelerate especially in the context of the inflation story.” "It's too soon to price in more rate cuts. One number doesn't make a trend. Overall, the Fed is getting the evidence it needs.” "A lot of job growth was driven by immigration recently which is good for wage growth coming down as a lot of these jobs are on the lower end of wage growth. This is a continuation of progress, both in the inflation picture and decelerating growth." "We're starting to get a little bit more clarity into what is this landing going to look like. We've been calling for a hard-ish one. It's certainly been delayed and not denied." "Ultimately, we're starting to see more durable progress on the economy and inflation decelerating, in a way that's not violent or dramatic. It's been coming in pretty softly so far." BRIAN JACOBSEN, CHIEF ECONOMIST, ANNEX WEALTH MANAGEMENT, MENOMONEE FALLS, WISCONSIN“The labor market just took one big step towards coming into better balance. There’s nothing wrong with payrolls rising by 175,000. The danger is that the move from hot to mild doesn’t stop there and it turns frigid. The risks would be greater if the Fed was still intent on hiking, but its patient pause keeps the risks of overshooting to the downside low.” JASON PRIDE, CHIEF OF INVESTMENT STRATEGY AND RESEARCH, GLENMEDE, PHILADELPHIA “The data's soft across the board from the Fed's perspective, which is what really matters here and an unemployment rate of 3.9% is not something disastrous. This indicates an economy that is not declining dramatically, but it definitely indicates a looser labor market.” “The Fed's looking for data points that pull them back away from this tighter-for-longer thought process. The one caveat would be that the labor market reports are notoriously fickle and what we see this month might not be what we turn around and see next month. It gives the Fed some hope, but it does not establish the trend for them.” PETER CARDILLO, CHIEF MARKET ECONOMIST, SPARTAN CAPITAL SECURITIES, NEW YORK “This report is not too hot not too cold and it’s just what the Fed wants to see. We’re not seeing a pickup in wages we’re still producing jobs, and the economy is doing well.” “However, the key to the report is wages which came in a little bit cooler than the market was looking for.” “It’s a good report for the Fed and it’s a good report for the markets.” “We need more evidence, but if we continue on this path, then I think that could change the timing of a rate cut, and it could mean instead of one, we might be looking at two rate cuts this year.” QUINCY KROSBY, CHIEF GLOBAL STRATEGIST, LPL FINANCIAL, CHARLOTTE, NORTH CAROLINA: "The jobs report came in lower than expectations. However, you can see from the market's reaction that it is a welcome number for the market. The market at this point is so hoping that the Fed can cut rates this year and did not want one of the hot numbers coming in. Today's report certainly offers them a cooler read of the labor landscape. In addition, and even more importantly, the unemployment rate ticked a bit higher... What this suggests is a bit of a cooling in the labor market. The reason it's important for the stock market is the stock market is looking for any signals that perhaps inflation will start to come down as the labor market cools, even at the margin. So this is market friendly." Sign up here. https://www.reuters.com/markets/us/view-april-us-jobs-report-shows-looser-labor-market-good-news-fed-2024-05-03/

2024-05-03 12:57

May 3 (Reuters) - Exxon Mobil (XOM.N) New Tab, opens new tab has closed its $60 billion purchase of Pioneer Natural Resources (PXD.N) New Tab, opens new tab, the oil and gas producer said on Friday, a day after receiving a go-head from the U.S. Federal Trade Commission (FTC) for the deal. Sign up here. https://www.reuters.com/markets/deals/exxon-mobil-completes-60-billion-deal-pioneer-natural-2024-05-03/

2024-05-03 12:56

NSTA awards 31 new licences aimed at boosting output Fifty companies have secured 82 licences so far this round Britain aims to cut emissions to net zero by 2050 May 3 (Reuters) - Britain's oil and gas regulator on Friday awarded 31 new hydrocarbon exploration licences as part of efforts to extend production in the ageing basin. The licences are part of the third and final tranche of the North Sea Transition Authority's (NSTA) 33rd oil and gas licensing round, which has awarded a total of 82 licenses to 50 companies. The round has so far licensed exploration activity with the potential to add around 600 million barrels of oil equivalent (mmboe) up to 2060, or 545 mmboe by 2050. That has angered environmental groups who have argued that the expansion of oil and gas production is inconsistent with the government's target to become a net-zero carbon economy by 2050. The licences are mainly for gas extraction from the southern North Sea, industry body Offshore Energies UK said, with the potential to start production within the next five years. Friday's awards follow 27 licences offered in a first allocation in October last year and 24 licenses offered in a second allocation in January, the NSTA said. An exploration licence does not necessarily result in a producing field. Britain's North Sea output stands at about 1.3 million barrels of oil equivalent per day (boed). That is down from about 4.4 million boed - more than OPEC heavyweight Iraq - at the start of the millennium. Output is projected to decline to less than 200,000 boed by 2050, the NSTA says. The NSTA has introduced a new clause for overlapping oil and gas licences and wind leases for the first time, as the main commercial mechanism for these licences to resolve spatial overlaps. It has identified a number of awards that have direct or very close proximity to some wind farm leases of The Crown Estate and Crown Estate Scotland, and is engaging with the offshore industry on co-location. Sign up here. https://www.reuters.com/markets/commodities/british-regulator-awards-more-north-sea-oil-gas-licences-2024-05-03/

2024-05-03 12:38

May 3 (Reuters) - Top U.S. liquefied natural gas producer Cheniere Energy (LNG.N) New Tab, opens new tab missed analysts' estimates for first-quarter profit on Friday, hit by a fall in natural gas prices and lower open market sales. U.S. natural gas prices plunged to a three-and-a-half-year low in February and stayed below $2 per million British thermal units for much of the first quarter. The company attributed a $697 million reduction in revenue to U.S. Henry Hub gas pricing to which the majority of its long-term LNG sales contracts are indexed. Its delivered LNG volumes for short-term agreements slumped 35.2% to 70 trillion British thermal unit while lower international gas prices also dented its margins. However, overall loaded LNG volumes remained roughly flat year-on-year as the bulk of its exports are tied to long-term contracts. Cheniere Energy reported a net income of $2.13 per share for the first-quarter, compared with analysts' average estimate of $2.24, according to LSEG data. The Houston, Texas-based firm reported LNG revenue of $4.04 billion for the three months ended March 31, compared with $7.09 billion in the year-ago quarter. The company said the first LNG production from the first liquefaction train at its Corpus Christ Stage 3 expansion project would be achieved by the end of 2024. Cheniere currently has the capacity to produce about 45 million tons per annum (MTPA) of LNG at Corpus Christi and Sabine Pass in Texas. The company re-affirmed its adjusted core profit forecast of $5.5 billion to $6 billion. Sign up here. https://www.reuters.com/business/energy/cheniere-energy-reports-lower-lng-revenue-2024-05-03/