2024-04-18 21:47
April 19 (Reuters) - A look at the day ahead in Asian markets. Asian markets will hope to end a bruising week on a positive note on Friday, but fraying global sentiment and a reluctance to take on much risk ahead of the weekend amid persistent Middle East tensions could limit any upside. Headlines from the great and the good of global finance gathered in Washington continue to keep traders on edge, especially regarding exchange rates and central banks' policy path relative to an increasingly hawkish Fed. The world's biggest exercise in democracy gets underway on Friday too, as the first of seven phases opens in India's general election, with 166 million voters across 21 states and territories casting their vote. Asia's economic calendar, meanwhile, sees the release of first quarter GDP from Malaysia and Japanese inflation for March. The latter could determine whether the dollar, currently around 154.50 yen, makes another push to break above 155.00. Bank of Japan Governor Kazuo Ueda said on Thursday the central bank may raise interest rates again if the yen's declines significantly push up domestic inflation. The IMF on Thursday urged Asian central banks to focus on domestic inflation and avoid tying their policy decisions too closely to anticipated moves by the U.S. Federal Reserve. On Wednesday, the United States, Japan and South Korea issued a joint statement to "consult closely" on the yen and won's recent weakness against the dollar. The greenback is firm, rallying 3% in the last few weeks to its highest since November. U.S. bond yields are ticking higher again and will post their third weekly rise in a row, with the 2-year Treasury yield back up at 5%. The two- and 10-year yields are up 40-45 basis points in the last few weeks. That's a tightening of financial conditions that emerging markets are struggling to handle. Asian stocks are eyeing their biggest weekly fall since January, with the MSCI Asia ex-Japan index down 2.3% this week and off 5% from its high last week. Japan's Nikkei, which hit an all-time high above 41,000 points in late March, is off 7% since then and on Thursday hit a two-month low. A flat close or fall on Friday will seal its worst week since December 2022. The Nasdaq and S&P 500, meanwhile, have fallen five days in a row, their worst runs since October and December 2022, respectively. Figures on Thursday, meanwhile, could help soothe fears that the yuan's weakness will accelerate capital flight out of the country - foreign investors increased their holdings of China's onshore yuan bonds in March for a seventh straight month. Here are key developments that could provide more direction to markets on Friday: - Japan CPI inflation (March) - Malaysia GDP (Q1) - India general election opens Get a look at the day ahead in Asian and global markets with the Morning Bid Asia newsletter. Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-graphic-pix-2024-04-18/
2024-04-18 21:45
April 18 (Reuters) - PPG Industries (PPG.N) New Tab, opens new tab missed first-quarter revenue estimates on Thursday due to sluggish demand in its industrial and performance coating businesses. Quarterly net sales fell about 2% to $4.31 billion from a year earlier. Analysts had expected $4.43 billion. Net sales of PPG's industrial coatings segment fell 3% to $1.70 billion, from $1.75 billion a year earlier, due to lower selling prices and slightly lower sales volumes. Its performance coatings segment's net sales fell about 1% to $2.61 billion in the quarter, hit by lower sales volumes. The company reported an adjusted profit of $1.86 per share for the quarter ended March 31, in line with analysts' average estimates. The Pittsburgh, Pennsylvania-based firm reaffirmed its 2024 adjusted earnings per share forecast in the range of $8.34 and $8.59. However, the company's adjusted earnings forecast for the second quarter is between $2.42 per share and $2.52 per share, below analysts' estimate of $2.55 per share. The industrial coatings maker said it benefited from businesses in Mexico and China but was impacted by lower demand in Europe, including an early Easter holiday which reduced the number of selling days in March, and ongoing tepid global demand for industrial coatings. "Looking ahead, while global industrial production remains at low absolute levels, we believe that demand in China for our products will deliver solid organic growth," said PPG CEO Tim Knavish. PPG also authorized a $2.5 billion share repurchase program. The company said it is executing on the strategic reviews of the architectural coatings business in the U.S. and Canada and the global silicas products business, and targets to "determine a path forward for each of these assessments no later than the third quarter." PPG had said in February that it would review strategic alternatives for its architectural coatings business in the United States and Canada, less than two months after the paints and coatings maker said it was reviewing alternatives for its silica products business. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. https://www.reuters.com/markets/commodities/coatings-maker-ppg-misses-q1-revenue-estimates-lower-sales-volume-2024-04-18/
2024-04-18 21:21
April 18 (Reuters) - Holtec International, which is in charge of decommissioning the Indian Point nuclear power plant in New York, on Thursday filed a lawsuit against the state over its rules regarding the discharge of radioactive materials from nuclear power plants. The company said the authority to monitor radioactive discharge was with the U.S. Nuclear Regulatory Commission (NRC) and not the state of New York. The state in 2023 passed a law that makes it unlawful to move "any radiological substance into the Hudson River in connection with the decommissioning of a nuclear power plant." "The passage of the bill has already delayed the planned completion of the decommissioning of Indian Point an additional eight years...we look forward to the legal process moving along on this important decision," the company said in its lawsuit in the Southern District Court of New York. "The failure of New York State to respect Federal Law, and follow the facts and science of the issue, left us no other means for remedy," a Holtec spokesperson said. New York's law would lead to Holtec having to "choose an alternative method of disposal for tritiated water...even if the discharge of the tritiated water to the Hudson River would meet the NRC's regulations," the filing said. The alternative method could likely add to the costs of the decommissioning. New York's concerns about Indian Point's practice of storing spent nuclear fuel in densely packed cooling pools New Tab, opens new tab played a significant role in the facility's closure in 2021. Separately, the Indian Point Decommissioning Oversight Board, which is led by New York's Department of Public Service, said while it would forego the discussion, it plans to continue presenting alternative methods of wastewater removal next week. Jumpstart your morning with the latest legal news delivered straight to your inbox from The Daily Docket newsletter. Sign up here. https://www.reuters.com/legal/holtec-files-lawsuit-against-new-yorks-radioactive-materials-discharge-law-2024-04-18/
2024-04-18 21:19
NEW YORK, April 18 (Reuters) - U.S. electrical systems are not expanding fast enough to meet rapidly growing power needs of technology like Generative AI, prompting data center businesses to sometimes bypass utilities, executives said at an energy conference this week. Layers of regulations, citing and permitting processes, and frequent legal fights brought by environmental and community groups New Tab, opens new tab, have slowed new power projects from connecting to the grid, and posed a threat to profits by traditional power companies like regulated electric utilities. "Regulation and permitting within the United States is abysmal," Brad Stansberry, who leads the financial management practice for the power and utility industry at services firm KPMG, said at the AI: Powering the New Energy Era summit in Washington on Wednesday. The delays have led data center businesses to bypass utilities and strike deals directly with power generators or build their own supply. Data center developer Aligned, which is one of the biggest companies of its kind with 2.5 gigawatts of capacity, is hastily pursuing power supplies after spending several years focusing on buying land for its operations. "We always assumed there would be power, but obviously that assumption was woefully inaccurate, so now we're chasing where power is," said Phill Lawson-Shanks, Chief Innovation Officer at Aligned. Among its considerations for electricity, Aligned is looking at using small modular reactors, or a type nuclear energy system that is currently in development in the United States, to power some of its projects, and is working with utilities on projects when possible, Lawson-Shanks said. "Where we can't, we will have to have them behind the meter," he added. Power companies also lamented the constraints with meeting the electricity needs of companies supporting chatbots like ChatGPT, which requires about 10 times the energy as a Google search, and other forms of artificial intelligence. "It's difficult to get anything built quickly," said Michael Keyser, who heads National Renewables Cooperative Organization, which represents about two dozen generation and transmission cooperatives, along with distribution cooperatives. "So I think it's a natural outcome of that for why you see data centers and tech companies pursuing their own power purchasing now." Regulated power utilities cited slow regulatory process to expand their systems, particularly with the demand for renewable energy such as solar and wind, while also hoping the surge of demand by big technology would help their companies grow. "If you're driving that bus, it's actually going to be easier for us," said Brian Bird, chief of electric utility and natural gas company NorthWestern Energy, referring to technology companies taking the lead in power generation. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. https://www.reuters.com/business/energy/us-power-tech-companies-lament-snags-meeting-ai-energy-needs-2024-04-18/
2024-04-18 21:18
April 18 (Reuters) - California's power companies PG&E (PCG.N) New Tab, opens new tab, Edison International (EIX.N) New Tab, opens new tab along with state energy agencies said on Thursday they have applied for $2 billion federal grant to increase grid capacity and deliver renewable energy. The grant applied to the U.S. Department of Energy (DOE) if approved would be used to increase statewide transmission capacity, streamline the process of connecting renewable energy projects to the grid and boost supply while lowering costs. The DOE's Grid Resilience and Innovation Partnerships (GRIP) Program is administering $10.5 billion in grants to enhance country's grid flexibility and resilience against growing threats of extreme weather and climate change. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. https://www.reuters.com/business/energy/california-power-companies-agencies-apply-2-bln-federal-grant-grid-upgrades-2024-04-18/
2024-04-18 21:14
April 18 (Reuters) - The Biden administration on Thursday finalized new measures to protect the health of U.S. public lands, including by leasing acreage for conservation in much the same way as it offers land for development like drilling, mining and grazing. The regulations from the Interior Department will help guard nearly a tenth of America's land base from the impact of climate change and enable industries to offset their environmental footprints, the agency said. The move is consistent with the administration's goal to put climate change at the center of agency decisions and with Biden's pledge to conserve 30% of America's land and water. The rule was welcomed by conservation groups, but an oil and gas industry group said it was illegal and pledged to sue. The Bureau of Land Management's so-called Public Lands Rule clarifies that conservation is on par with other uses of public lands and directs the Interior Department division to consider land health when making decisions. It also creates a new system whereby acreage can be leased to restore degraded landscapes or mitigate impacts from development on other public lands. The leases would not conflict with existing uses, the agency said. "As stewards of America's public lands, the Interior Department takes seriously our role in helping bolster landscape resilience in the face of worsening climate impacts," Interior Secretary Deb Haaland said in a statement. "Today's final rule helps restore balance to our public lands as we continue using the best-available science to restore habitats, guide strategic and responsible development, and sustain our public lands for generations to come." Conservation groups said the BLM for too long had focused on development rather than preserving land health. "This rule gives the BLM the tools it needs to right these wrongs and start improving the health of our public lands," Center for Western Priorities spokesperson Kate Groetzinger said in a statement. "It also provides tools for extractive industries to be part of the solution, rather than exacerbate the problem." The Western Energy Alliance, which represents oil and gas companies that operate on federal lands, said the rule would upend the balance on public lands between industries like energy, mining, grazing and recreation. "This is a classic example of overreach by the Biden Administration, which has no problem ignoring basic law, and would be detrimental to rural communities all across the West that rely on responsible economic development on non-park, non-wilderness public lands," Alliance President Kathleen Sgamma said in a statement. "We have no choice but to litigate." Get weekly news and analysis on the U.S. elections and how it matters to the world with the newsletter On the Campaign Trail. Sign up here. https://www.reuters.com/sustainability/land-use-biodiversity/us-will-lease-public-lands-conservation-under-new-policy-2024-04-18/
