2024-04-03 22:37

NEW YORK, April 3 (Reuters) - Recent appreciations of the dollar and gold are "anomalies" and the greenback should not be so strong due to the U.S. deficit, Co-Chief Investment Officer at Bridgewater Associates Karen Karniol-Tambour said on Wednesday. The U.S. dollar index (.DXY) , opens new tab is up roughly 3% this year. A Reuters poll showed a strong U.S. dollar will maintain the status quo in the near term, as markets brace for the possibility the Federal Reserve's first interest rate cut gets delayed to the second half of this year. Gold should only follow the appreciation of the dollar, not go up more than the greenback shot, Karniol-Tambour also said during comments at the Sohn Conference in New York. Geopolitical fears could explain the metal's price high prices, she added. Gold price has risen 11.5% so far this year, to $2,299.17 per ounce. The metal reached a record high on Wednesday, after Federal Reserve Chair Jerome Powell reiterated that recent readings on job gains and higher than expected inflation do not materially change the overall picture of economic policy this year. Karniol-Tambour said she favors U.S. stocks over bonds, but did not elaborate on the reasons. 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/us-dollar-gold-rises-are-anomalies-says-bridgewaters-karniol-tambour-2024-04-03/

2024-04-03 22:19

HOUSTON, April 3 (Reuters) - Exxon Mobil (XOM.N) , opens new tab on Wednesday signaled first-quarter operating results would drop over the prior quarter on weaker oil, gas prices and a big loss in fuel derivatives, a securities filing showed. The drop follows two years of strong oil and fuel prices that turned the largest U.S. oil company into one of the most profitable energy companies globally. Last year, it posted a record profit for a first quarter at $11.4 billion. The biggest impact in the latest quarter came from weak natural gas prices and fuel derivatives, which reversed course after run-ups last year. Overall, the snapshot shows about $6.65 billion in operating profit for the quarter, compared to $11.6 billion in the same quarter a year ago and $7.63 billion in the fourth quarter. Investors expect the company to post an adjusted per share profit of $2.21, compared to the year-ago's $2.83, according to financial firm LSEG's consensus estimate. Natural gas prices fell to multi-year lows during the quarter. Overall weaker oil and gas prices alone cut Exxon's profits by about $600 million compared to the fourth quarter of 2023. The company also said fuel derivatives undercut gains in gasoline and diesel margins, costing it about $1.1 billion compared to the fourth quarter. Refining maintenance costs also jumped last quarter, the filing showed. Last year's financial gains led Exxon to pursue all-stock deals for U.S. shale oil producer Pioneer Natural Resources (PXD.N) , opens new tab and carbon storage firm Denbury. Its shares were up 16.2% during the first quarter and finished at $119.30 on Wednesday. The company also claims a preemptive right over Hess Corp's Guyana assets, the prize in Chevron's (CVX.N) , opens new tab $53 billion offer for Hess. That claim is being considered by an international arbitration panel. The company is expected to post full results for the period on April 26. 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/exxon-mobil-expects-first-quarter-oil-earning-fall-2024-04-03/

2024-04-03 21:47

April 4 (Reuters) - A look at the day ahead in Asian markets. A pause , opens new tab in the global bond market selloff, stabilization on Wall Street and a softer dollar should all help support Asian markets on Thursday, as investors also turn their eyes to U.S. Treasury Secretary Janet Yellen's visit to China. The Asia and Pacific economic calendar on Thursday is extremely light, with only Australian and Indian services purchasing managers index reports on tap, leaving investors to take their cue from global market moves and events. Chief among them will be Federal Reserve Chair Jerome Powell's reiteration on Wednesday that policymakers can take their time deliberating over when to deliver their first rate cut, and that it remains "too soon" to judge whether recent stronger-than-expected inflation is "more than just a bump." The recent whittling away of U.S. rate cut expectations - rates markets no longer fully expect a move in June or 75 basis points of easing in total this year - has recently begun to squeeze bond and stock markets around the world. But Powell didn't scare the horses any further on Wednesday. In addition, figures also showed service sector prices pressures cooled significantly last month and the dollar had its steepest fall in a month, which should help Asian stocks on Thursday claw back some of the previous day's losses. Yellen lands in China as evidence mounts that the economy may finally be emerging from its post-lockdown funk. The latest services PMIs strengthened that view, and Citi's China economic surprises index is at its highest level in almost a year. The Caixin/S&P Global services purchasing managers' index (PMI) edged up to 52.7 in March from 52.5 the month before, above the 50-mark that separates expansion from contraction for the 15th consecutive month. China's tentative recovery is also supporting the continued rise in global commodity prices. Oil edged closer to $89 a barrel on Wednesday, copper hit a 13-month peak and gold printed yet another record high. Gold has risen in 26 of the last 35 trading days, in which time it has surged 15%. Investors will be wary of further aftershocks following a 7.2 magnitude earthquake that rocked Taiwan on Wednesday, the island's biggest in 25 years. Shares in global chipmaking giant TSMC fell 0.9% after it said some facilities were evacuated following the quake, though workers have since returned. India's services PMI figures, meanwhile, will be closely watched to see if they match the strength of the manufacturing PMI earlier this week. Manufacturing in March expanded at the fastest pace in 16 years and hiring increased at the strongest rate in six months. Here are key developments that could provide more direction to markets on Thursday: - Australia services PMI (March) - India services PMI (March) - U.S. Treasury Secretary Janet Yellen visits China 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/global-markets-view-asia-graphic-pix-2024-04-03/

2024-04-03 21:40

April 3 (Reuters) - California’s grid operator has recommended $6.1 billion of new transmission projects with most of the money to channel more electricity from offshore wind turbines to the grid as the most populous U.S. state races to meet clean energy targets. State utility regulators have projected that California needs to build more than 85 GW of clean electricity capacity by 2035 to meet its greenhouse gas reduction goals and keep up with demand. Nineteen of the 26 projects included in the California Independent System Operator's plan would be required to ensure grid reliability amid expected increases in electricity use, as well as a broader transition to renewable resources, it said on Tuesday. Three of the transmission lines included in the plan – forecast to cost $4.59 billion – would help channel electricity from floating offshore wind turbines to the state grid. These projects "represent the first wave of development for offshore wind to meet the state’s portfolio needs…", Neil Millar, CAISO’s vice president for infrastructure and operations planning, said in a statement. Additionally, the plan would also support the development of more than 38 GW of solar generation, 3 GW of wind within California, and 21 GW of geothermal development, according to CAISO. It would also help California import more than 5.6 GW of wind resources from Idaho, Wyoming and New Mexico. A final version of the draft plan will be evaluated by CAISO’s Board of Governors in May. The U.S. Interior Department on Tuesday approved the eighth American commercial-scale offshore wind project off the coast of Massachusetts, bringing the country a third of the way to President Joe Biden’s goal of permitting 30 GW of offshore wind capacity by 2030. 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-grid-operator-backs-big-boost-offshore-wind-2024-04-03/

2024-04-03 21:33

WASHINGTON, April 3 (Reuters) - The G7 price cap on Russian oil shipments is cutting the revenue that Moscow has available to support its invasion of Ukraine, and the mechanism's effectiveness is helped by the recent actions of Indian refiners, U.S. officials will say in New Delhi on Thursday, according to prepared remarks. The U.S. Treasury officials, Eric Van Nostrand, assistant secretary for economic policy, and Anna Morris, acting assistant secretary for terrorist financing, will make the remarks at an event held by the Ananta Aspen Centre in New Delhi, the Treasury told Reuters on Wednesday. "We know that the Indian economy has much at stake in the Russian oil trade, and has much at stake from the global supply disruptions that the price cap is designed to avoid," the officials will say. India has been one of the top consumers of Russian oil since Western sanctions have shifted the market for the crude from Europe to Asia, imposing costs on Russia for relying on a "shadow fleet" of aging tankers to ship it further. New Delhi has traditionally had close economic and defense ties with Moscow and refrained from criticizing Russia over its war in Ukraine. But last week the foreign ministers of Ukraine and India said they had agreed to restore trade and cooperation to levels before the Russian invasion of Ukraine. The price cap imposed by the G7 countries, the European Union and Australia bans the use of Western maritime services such as insurance, flagging and transportation when tankers carry Russian oil priced at or above $60 a barrel. The West imposed the mechanism after Russia's February 2022 invasion of Ukraine. The U.S. officials are in India this week meeting with government officials and business leaders to discuss cooperation on anti-money laundering, countering the financing of terrorism, and implementation of the price cap. Since October, the U.S. has enforced the price cap with sanctions including designating in February Sovcomflot (SCF), Russia's state-owned shipping company. The actions on Russia are helped by moves by international refiners, including India's Reliance Industries (RELI.NS) , opens new tab, to not buy Russian oil loaded on SCF tankers, the officials will say. "Our efforts are bolstered by international support for these enforcement actions, like the recent decision from private and publicly owned refineries to halt imports on Sovcomflot ships," the Treasury officials will say. Enforcement of the price cap on Russian oil has hit the price that Russia can get for its oil in global markets, reducing revenues for its war on Ukraine, the officials will say. The Treasury estimates that the discount of Russian Urals oil to the Brent international benchmark has widened from about $12-$13 a barrel before October to $18 in January and to about $17 to $18 in February, the last month with data available, the officials will say. "The United States, together with the rest of the (price cap) coalition, will need to remain vigilant and ensure that the policy, its implementation, and enforcement are deployed to inflict financial burden on Russia and keep global energy markets stable," the officials will say. 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-tell-event-india-that-price-cap-russian-oil-working-2024-04-03/

2024-04-03 21:15

ANCHORAGE, Alaska, April 3 (Reuters) - U.S. Treasury Secretary Janet Yellen on Wednesday would not rule out additional steps to protect American clean energy industries from China's excess investment and production capacity, but declined to say whether she would raise the possibility of new tariffs in talks with Chinese officials. During a fuel stop in Alaska on her second trip to China for economic talks, Yellen told reporters the Biden administration was serious about nurturing U.S. supply chains for electric vehicles, EV batteries, solar panels and other key products. "We're providing tax subsidies to some of these sectors, and I wouldn't want to rule out other possible ways in which we would protect them," she said, when asked whether she would raise a threat of new trade barriers in talks with her Chinese counterparts, without specifying whether those steps included tariffs. "But I think it's not just the United States, but quite a few countries, including Mexico, Europe and Japan, that are feeling massive pressure from massive investment in these industries in China," Yellen added. The Treasury secretary intends to raise U.S. concerns about China's large and growing excess manufacturing capacity, particularly in new energy goods, during her nearly weeklong trip to China's southern factory and export hub, Guangzhou, and the capital, Beijing. "We are trying to nurture an industry in solar cells, electric batteries and electric vehicles. And these are actually all areas where massive investment in China is creating overcapacities," Yellen said. She will meet with her main counterpart, Vice Premier He Lifeng, Guangdong Province Governor Wang Weizhong and executives of U.S. companies in China, the Treasury Department said. She will hear firsthand about business climate challenges that are prompting U.S. companies to limit their investment in China. The trip is Yellen's second in-person visit to China as Treasury secretary. She visited Beijing in July 2023 to re-establish economic ties after years of frosty relations - fueled in part by U.S. tariffs on Chinese goods imposed by then-President Donald Trump and maintained by President Joe Biden, along with increasing national security curbs on American exports of semiconductors and other high-technology goods to China. Her trip comes a day after Biden and Chinese President Xi Jinping held their first direct talks since November, in which Taiwan tensions and U.S. national security technology curbs on China took center stage. Yellen last met with Vice Premier He in November, ahead of the Asia-Pacific Economic Cooperation Summit in San Francisco, where Biden also met with Xi. Her outreach has led to a series of meetings between U.S. Treasury officials and counterparts in China's finance ministry and central bank, exchanging views on a range of economic topics, including difficulties in China's property sector. But because the discussions are not set up as negotiations, they have not led to policy shifts. The European Union is investigating whether China's EV industry is benefiting from unfair subsidies, which could lead to tariffs to protect European carmakers. The U.S. Commerce Department has opened a probe into whether Chinese vehicles pose national security threats due to the data they transmit, and U.S. lawmakers have urged Biden to hike tariffs on Chinese EVs. 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/yellen-wont-rule-out-more-protections-us-clean-energy-sector-amid-chinese-excess-2024-04-03/