2024-05-01 04:50

May 1 (Reuters) - Canada's Brookfield Asset Management (BAM.TO) New Tab, opens new tab said on Wednesday it will develop new wind and solar farms, with backing from tech giant Microsoft (MSFT.O) New Tab, opens new tab in an attempt to bring 10.5 gigawatts of generating capacity online. Microsoft expects its partnership with Brookfield to help finance the creation of renewable electricity projects to be built between 2026 and 2030, beginning in the U.S. and Europe, the Financial Times reported earlier. Brookfield confirmed the FT report, but did not immediately provide further details regarding the deal. The 10.5 gigawatts of new capacity would cost more than $10 billion, the newspaper said, based on recent industry trends. The deal underscores the race to meet clean energy commitments while satisfying the voracious energy demand of cloud computing and artificial intelligence. Microsoft did not respond to a Reuters request for comment outside business hours. Sign up here. https://www.reuters.com/sustainability/climate-energy/microsoft-power-data-centers-with-brookfield-renewables-deal-ft-says-2024-05-01/

2024-05-01 04:32

A look at the day ahead in European and global markets from Kevin Buckland The marquee markets event for the week is almost upon us, and needs little introduction: The outlook for U.S. interest rates continues to be the elephant in the trading room for all asset classes, responsible not only for recent peaks in Treasury yields and the dollar, but also forming the backdrop for record runs and subsequent declines in the likes of gold and bitcoin. The Federal Reserve wraps up its two-day powwow today with all ears trained on what Chair Jerome "Jay" Powell has to say in his news conference, which takes on extra weight in the absence of updated economic projections from the board this time around. A cautious, hawkish tone seems likely given Powell has professed diminished confidence over a near-term cooling in inflation, following the economy's abrupt pivot from a perfect soft-landing scenario to a very extended holding pattern, high above the runway. Futures markets now just barely see a single quarter-point rate cut by year-end, from an many as five of those at the start of the year. The Fed meeting has kept markets relatively well-behaved into the event, barring Wall Street's steep slide overnight following more heated labour data, and the fireworks in dollar-yen at the start of the week in what now looks clearly like official Japanese intervention, despite finance ministry officials playing coy. Even in that environment, king dollar grinds inexorably higher as two-year Treasury yields scale nearly six-month peaks. Holidays around most of Europe mean even less distraction from the week's main event, although ECB policymaker Pablo Hernandez de Cos has a chance to air his views at the London School of Economics. Contrary to the Fed, money markets are more than 70% priced for a first euro zone rate cut as soon as the next meeting in June. It's business as usual for London, and Britain gets home price data and manufacturing PMIs. The earnings calendar is light in the European day, but picks up again in the U.S., with Mastercard , Qualcomm (QCOM.O) New Tab, opens new tab and Pfizer among the diverse list of headliners. Key developments that could influence markets on Wednesday: -FOMC concludes two-day meeting -UK Nationwide house prices, S&P manufacturing PMI (both April) -U.S. earnings including Mastercard, Qualcomm and Pfizer Sign up here. https://www.reuters.com/markets/europe/global-markets-view-europe-2024-05-01/

2024-05-01 04:13

SYDNEY, May 1 (Reuters) - Australia on Wednesday gave the go-ahead for six projects to study the feasibility of building wind farms in waters off its southern coast as it looks to ramp up renewable energy to meet its net zero emission target by 2050. Six others could also win feasibility licenses once they complete consultations with Indigenous groups, Energy Minister Chris Bowen said. The 12 projects, including proposals by wind giants Orsted (ORSTED.CO) New Tab, opens new tab and Iberdrola (IBE.MC) New Tab, opens new tab, off the state of Victoria would have generation capacity of 25 gigawatts (GW). That is more capacity than the state currently has but will be needed to replace coal-fired power. The feasibility licences will allow developers to undertake environmental assessments and geotechnical surveys in the proposed wind farm zone on the Gippsland coast. "The government's reliable renewables plan is unlocking offshore wind in Australia ... it is very much about planning for a reliable energy system years into the future," Bowen said in a speech at the Energy Users Association conference. If feasibility is proven, developers can apply for a commercial licence to build an offshore wind project. Two feasibility licences were won by projects backed by global fund manager Copenhagen Infrastructure Partners, including the Star of the South, which has long planned an A$9 billion ($6 billion) wind farm in the offshore zone. Australia's centre-left Labor government has been boosting clean energy projects as the country moves away from its dependence on coal-fired power. It has pledged to underwrite new wind, solar and battery projects with more than A$40 billion since coming to power in 2022. ($1 = 1.5456 Australian dollars) Sign up here. https://www.reuters.com/sustainability/climate-energy/australia-grants-feasibility-licences-offshore-wind-farms-2024-05-01/

2024-05-01 01:00

LONDON, April 30 (Reuters) - India’s coal production and generation shattered records in March as miners and power producers made a Herculean effort to avoid a repetition of the fuel shortages and blackouts that hit the country two years ago. Domestic coal production soared to an unprecedented 117 million tonnes in March 2024 up from 108 million in March 2023 and 96 million in March 2022, according to data from the Ministry of Coal. Mining firms sent almost 74 million tonnes to generators, up from 68 million in the same month last year and 65 million two years ago. (“Monthly statistics at a glance New Tab, opens new tab”, Ministry of Coal, April 2024) The mines despatched an average of 298 coal trains to generators each day, up from 271 in 2023 and 269 in 2022, as the rail network was instructed to prioritise fuel movements. As a result, coal-fired generators had enough fuel to boost their output to a record 113 billion kilowatt-hours (kWh) up from 103 billion kWh in the same month last year and two years ago. Coal accounted for almost 81% of generation from all sources last month from 79% in March 2022, when fuel shortages left many power plants idle and resulted in blackouts. Chartbook: India electricity generation New Tab, opens new tab Coal-burning plants helped the transmission system serve a record load of 139 billion kWh in March 2024, up from less than 128 billion kWh in 2023 and 130 billion kWh in 2022. Coal supplied almost all the increase in load as record amounts of solar were partially offset by lower hydro as a result of low reservoir levels. The transmission system was able to serve peak load of 222 million kilowatts up from 199 million during the heatwave two years ago without becoming dangerously stretched. Despite record coal generation, fuel supplies remain comfortable as a result of unprecedented production and distribution. Generators still had 48 million tonnes of coal in storage on April 28 up from 36 million tonnes a year earlier and 22 million in 2022. Inventories were enough to satisfy the minimum requirement for more than 16 days, up from 12 days a year ago and just eight days at the end of April 2022. With plentiful coal generation available, the transmission network has been much more stable, with grid frequency remaining close to its target of 50 cycles per second (Hertz). Grid frequency reflects the balance between generation and load; sustained periods of under-frequency are a sign the network cannot call on enough generation to satisfy demand. But frequency fell below the minimum acceptable level of 49.9 Hertz, just 6% of the time in March 2024 compared with 9% in March last year and almost 15% in March 2022. MILD WEATHER India has also been lucky with relatively mild temperatures this March and April across the northern plains compared with two years ago, which limited the growth in air-conditioning and refrigeration loads. Temperatures in the New Delhi suburb of Palam averaged 23.3°C (73.9°F) in March, which was 2.5°C less than during the spring heatwave in March 2022. The grid remained stable in April with temperatures close to average for much of the month on the heavily populated northern plains. From the middle of May onwards renewable generation will increase significantly as the approach of the monsoon boosts wind and hydro generation. The India Meteorological Department is forecasting this years monsoon will bring slightly above average rainfall which should boost hydro output (“Long-range forecast for the 2024 southwest monsoon season rainfall”, IMD, April 15). With coal inventories plentiful, and more wind and hydro available, total generation should remain adequate during the summer months. The next pinch point will come in late September and early October when the southwest monsoon retreats and the electricity system becomes more reliant on coal again. Related columns: - India amasses record seasonal coal stocks as mine output surges (February 28, 2024) - India’s coal sector sees huge leaps in output and demand (February 28, 2024) - India rebuilds coal stocks to ensure electric reliability (January 31, 2024) - India turns to coal as hydro generation falls (November 30, 2023) John Kemp is a Reuters market analyst. The views expressed are his own. Follow his commentary on X https://twitter.com/JKempEnergy New Tab, opens new tab Sign up here. https://www.reuters.com/markets/commodities/indias-coal-mines-generators-easily-meet-record-power-demand-kemp-2024-04-30/

2024-05-01 00:50

BRASILIA, April 30 (Reuters) - Brazil released vigorous job market figures on Tuesday, reinforcing views of stronger economic activity at the beginning of this year but keeping the central bank wary of potential impacts on inflation. Both the unemployment rate and formal job creation figures in Latin America's largest economy came in better than expected in their March readings, maintaining a positive trend that has excited the government and spooked policymakers. Brazil's jobless rate stood at 7.9% in the January-March period, according to statistics agency IBGE, slightly up from the 7.8% seen in the previous rolling quarter but still the lowest for a quarter through March since 2014. The rate was below the 8.1% expected by analysts polled by Reuters in a period in which unemployment is seasonally higher. Separate government data showed that Brazil created a net 244,315 formal jobs in March, significantly more than the 188,000 expected in a Reuters poll of economists. "Today's data indicate that we might see new adjustments in GDP growth projections as well as concerns about services inflation," Kinitro Capital economist Joao Savignon said. "They continue to portray a tight job market." In the first quarter, 719,033 formal jobs were created, according to the government's adjusted series, a 33.9% increase from the previous year, with the services sector leading the way. The average salary upon hiring decreased slightly to 2,082 reais ($405) from 2,087 reais the month before, according to Brazil's Labor Ministry, but IBGE data for the full quarter showed average wages up 1.5% on a sequential basis. "Real wages continue to grow at a relatively solid pace, leading to services inflation remaining uncomfortably high," Pantheon Macroeconomics' chief Latin America economist, Andres Abadia, said. Brazil's central bank, which is set to make its next monetary policy decision next week, has emphasized that it is closely monitoring the dynamics of income from various surveys to better assess the degree of slack in the labor market and its potential impacts on service sector inflation. One of the bank's board members, Ailton Aquino, told reporters on Tuesday that services inflation was still a point of attention and the fresh job market figures would be taken "very seriously" by the monetary policy committee. The central bank has lowered its key borrowing rate by 50 basis points at each of its last six meetings, to 10.75%, and signaled in March another cut of the same magnitude in May. But Governor Roberto Campos Neto recently said policymakers could no longer provide guidance on policy decisions due to increased uncertainties, with some believing the easing pace may be reduced. Finance Minister Fernando Haddad last month urged policymakers not to be frightened by employment data when assessing room for further rate cuts, while signaling the government may bump up its forecast for 2024 economic growth. On Tuesday evening, Haddad told reporters in Sao Paulo that Brazil is "combining job creation with very controlled inflation in these first months of the year," adding that there is the need to "match the interpretation of these numbers to what they actually represent to Brazil." President Luiz Inacio Lula da Silva, who has previously criticized the central bank for the high interest rates and dubbed jobs creation his "obsession," cheered the latest employment figures. "The government's been working for everyone, and we will continue to move forward," he posted on social media. ($1 = 5.1419 reais) Sign up here. https://www.reuters.com/world/americas/brazils-job-creation-outpaces-expectations-march-signals-stronger-activity-2024-04-30/

2024-05-01 00:49

API said to report US crude stocks rise 4.906 million barrels Fed to hold rates steady as inflation dims hopes for easing EIA supply report due at 1430 GMT LONDON, May 1 (Reuters) - Oil fell more than 1% on Wednesday, losing ground for a third straight session, sapped by the prospect of a ceasefire agreement in the Middle East and persistent U.S. inflation dampening the expected pace of interest rate cuts. Brent crude futures for July were down $1.19, or 1.4%, to $85.14 a barrel at 1255 GMT, having hit $84.78, their lowest since March 15. U.S. West Texas Intermediate crude futures for June were down $1.24, or 1.5%, to $80.69, after touching their lowest since March 21. Expectations that a ceasefire agreement between Israel and Hamas could be in sight have grown following a renewed push led by Egypt, even as Israeli Prime Minister Benjamin Netanyahu has vowed to go ahead with a long-promised assault on Rafah. "The crude market is weighed down by continued hopes for a ceasefire," said Ole Hansen of Saxo Bank. "In addition, stubborn U.S. inflation has further reduced rate cut expectations." U.S. Federal Reserve officials are concluding their latest two-day policy meeting on Wednesday and are expected to hold interest rates steady. A rate cut would act as a boost to economic growth and fuel demand. "Continued signs of inflation also raised concerns about demand for crude oil. This comes ahead of the U.S. driving season, where demand for gasoline rises strongly," ANZ analysts said in a report on Wednesday. Further weighing on oil prices were separate reports that U.S. crude inventories rose and production increased. U.S. crude inventories rose 4.906 million barrels in the week ended April 26, according to market sources citing American Petroleum Institute figures, which defied expectations for a decline of 1.1 million barrels. Traders will be waiting to see if official data from the Energy Information Administration (EIA) on Wednesday confirms the trend. On Tuesday, the EIA said U.S. production saw its biggest monthly increase in about 3-1/2 years from January to February. Sign up here. https://www.reuters.com/business/energy/oil-falls-third-day-us-crude-inventories-swell-2024-05-01/