2024-03-18 21:12
WASHINGTON, March 18 (Reuters) - The National Highway Traffic Safety Administration said on Monday it has opened an investigation into a recent Ford (F.N) , opens new tab Mustang Mach-E fatal crash in San Antonio, Texas, where authorities suspect an advanced driver assistance system was in use. On Friday, the National Transportation Safety Board opened a separate investigation into the Feb. 24 crash, saying initial information indicated the Ford struck the rear of a Honda CR-V that was stationary in a traffic lane on Interstate Highway 10. A San Antonio police report said the Ford had "partial automation" engaged at the time of the crash. NHTSA is opening a special crash investigation into the Fatal Ford accident. The agency typically opens more than 100 special crash investigations annually into emerging technologies and other potential auto safety issues. Since 2016, NHTSA has opened more than three dozen Tesla (TSLA.O) , opens new tab special crash investigations where advanced driver assistance systems such as Autopilot were suspected of being used with 20 crash deaths reported. This is NHTSA's first special crash probe involving a Ford advanced system. The police report said the driver of the Honda CR-V, 56-year-old Jeffrey Allen Johnson of Austin, was taken to a hospital and later pronounced dead. Ford has said its BlueCruise is an advanced hands-free driving system that operates on 97% of U.S. and Canadian highways with no intersections or traffic signals. The NTSB said it was investigating the crash "due to its continued interest in advanced driver assistance systems and how vehicle operators interact with these technologies." A Ford spokesperson said the automaker "reported this incident to NHTSA as soon as we were made aware, and we are actively researching all available information. Safety is a top priority for all of us at Ford, and we will collaborate fully with any resulting investigation." The NTSB has opened several investigations in recent years into advanced driver assistance systems , opens new tab, including Tesla's (TSLA.O) , opens new tab Autopilot. Stay up to date with the latest news, trends and innovations that are driving the global automotive industry with the Reuters Auto File newsletter. Sign up here. https://www.reuters.com/business/autos-transportation/us-agency-probes-driver-assistance-system-use-fatal-ford-crash-2024-03-18/
2024-03-18 21:06
March 18 (Reuters) - Apple (AAPL.O) , opens new tab is in talks to build Google's Gemini artificial intelligence engine into the iPhone, Bloomberg News reported on Monday, citing people familiar with the situation. The negotiations are about licensing Gemini for some new features coming to the iPhone software this year, the report said, adding that the terms or branding of an AI agreement or how it would be implemented have not been decided. Alphabet shares jumped more than 6% in early U.S. trading, while Apple was up 2.5%. It is unlikely that any deal would be announced until June, when Apple plans to hold its annual conference of developers, and the iPhone maker also recently held talks with ChatGPT-maker OpenAI about using its model, according to the report. Apple, Alphabet-owned (GOOGL.O) , opens new tab Google and OpenAI did not immediately respond to Reuters requests for comment. A potential deal between the firms could help Google expand the use of its AI services to more than 2 billion active Apple devices, boosting the search giant's efforts to catch up with Microsoft (MSFT.O) , opens new tab-backed OpenAI. It could also help allay investor fears about the slow roll-out of AI apps by Apple, which has lost the crown of the world's most valuable firm after a 10% decline in its shares this year. The firms have a years-long partnership that makes Google the default search engine on Apple's Safari web browser, and a genAI tie-up may help the Alphabet unit navigate fears that services like ChatGPT could threaten its search dominance. But the agreement could also invite sharper scrutiny from U.S. regulators, who have sued Google on grounds that it unlawfully stifled competition by paying billions of dollars to Apple to maintain its monopoly in search. "This strategic partnership is a missing piece in the Apple AI strategy and combines forces with Google for Gemini to power some of the AI features Apple is bringing to market," said Daniel Ives, an analyst at Wedbush. "This is a major win for Google to get onto the Apple ecosystem and have access to the golden installed base of Cupertino with clearly a major licence fee attached to this," he said, referring to Apple's California headquarters. Google in January partnered with Apple's rival Samsung (005930.KS) , opens new tab to deploy its genAI technology in the South Korean firm's Galaxy S24 series of smartphones, as part of its efforts to boost the use of Gemini after some missteps during its roll-out. Apple CEO Tim Cook said last month that the company was investing "significantly" in generative AI and would reveal more about its plans to put the technology to use later this year. The Bloomberg report said Apple was planning to use its own homegrown AI models for some new capabilities in its upcoming iOS 18, but was seeking a partner to power genAI features, including functions for creating images and writing essays based on simple prompts. The Technology Roundup newsletter brings the latest news and trends straight to your inbox. Sign up here. https://www.reuters.com/technology/apple-talks-let-googles-gemini-power-iphone-ai-features-bloomberg-news-says-2024-03-18/
2024-03-18 20:59
HOUSTON, March 18 (Reuters) - Top oil executives took to the stage of a major energy conference on Monday to vocally oppose calls for a quick move away from fossil fuels, saying society would pay a steep cost to replace oil and gas. Big oil companies including BP and Equinor have written down renewable energy projects and others have been forced to push back their greenhouse gas reduction targets due to greater uncertainties with the transition to clean fuels. That and unexpected strong demand for oil has stiffened the industry's opposition to government and activist demands to phase out fossil fuel development. Policymakers also have shifted their focus to energy supply security and affordability since Russia invaded Ukraine and during the latest conflict in the Middle East. "We should abandon the fantasy of phasing out oil and gas, and instead invest in them adequately" to reflect demand, Amin Nasser, CEO of Saudi Aramco, the world's largest oil producer, said to applause. Despite the growth of electric vehicles, solar and wind power, oil demand this year will reach a new record of 104 million barrels per day this year, Nasser said. Alternative energy has yet to show it can displace hydrocarbons at current requirements or prices, Nasser added. He rejected the International Energy Agency forecast of peak oil demand in 2030. Other oil CEOs echoed his view, with Shell's Wael Sawan pointing to government bureaucracy in Europe as slowing needed development. Petrobras CEO Jean Paul Prates said caution should overrule haste. Exxon Mobil CEO Darren Woods also said regulations governing clean fuels have still not been resolved. "If we rush or if things go the wrong way, we’ll have a crisis that we will never forget,” said Prates. "You're hearing some very pragmatic views up here," said Meg O'Neill, CEO of Woodside Energy, who rejected what she called simplistic views that the transition to cleaner fuels can "happen at an unrealistic pace." Public debate over the transition and its cost has become increasingly divisive in many countries. "It has become emotional. And when things are emotional, it becomes more difficult to have a pragmatic conversation," O'Neill said. It could take 20 to 40 years to build the market for and test some new clean-fuel technologies, O'Neill said. U.S. Energy Secretary Jennifer Granholm pushed back at oil industry views on renewable fuels. "That is one opinion," she said of Nasser's prediction of continuing long-term demand for fossil fuels. "There have been other studies that suggest the opposite that oil and gas demand and fossil demand will peak by 2030." She called the transition to clean fuels "an undeniable, inevitable and necessary realignment of the world's energy system." She added that the world will need fossil fuels well into the future, and said technologies that remove carbon "are ways that we can keep the lights on and continue to press for clean energy solutions." Exxon's Woods, whose company spent $4.9 billion on a carbon sequestration company, raised concerns about building a business around hydrogen and carbon capture and storage. He said in remarks at the conference he is not confident that carbon capture and storage will "necessarily come to the right solution" because of its current high costs and lack of market incentives. On the use of hydrogen as a fuel, "the challenge has been translating the legislation of the IRA (Inflation Reduction Act) into regulation," Woods said. "There isn't a lot of incentives" to drive low-carbon hydrogen fuel projects, he said, referring to hydrogen derived from natural-gas. 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/ceraweek-big-oil-executives-push-back-against-calls-fast-energy-transition-2024-03-18/
2024-03-18 20:39
HOUSTON, March 18 (Reuters) - U.S. crude oil stockpiles in the Strategic Petroleum Reserve (SPR) at year-end will be at or exceeding the level prior to a massive 180 million barrel sale two years ago, U.S. Energy Secretary Jennifer Granholm said on Monday. The U.S. is replenishing the SPR, after President Joe Biden's administration announced a sale of 180 million barrels of oil over six months from the reserve, the largest ever SPR sale, in an attempt to lower gasoline prices after Russia invaded Ukraine. While the Department of Energy only expects to replenish by the end of this year about 40 million barrels since the 180 million sale, another 140 million barrels that would have been drained from 2024-2027 will stay in the SPR due to the cancellation in 2022 of congressionally mandated sales. The department declined to provide a final number of stocks expected to be in the reserve at the end of the year. The reserve currently holds about 362 million barrels. Stocks in the reserve stood at 565 million barrels before the announcement of the sale in March 2022. Other congressionally mandated sales may also be canceled, Granholm said at the CERAWeek energy conference in Houston. Having the SPR refilled is a congressional priority and "that's a conversation we'll be having with them," Granholm said. Completion of maintenance at one SPR storage site will allow the U.S. to buy more oil, Granholm said. Energy officials are monitoring the rise in U.S. oil prices and its impact on replenishing the reserve, Granholm said. The Department of Energy had aimed to repurchase the oil under $79 a barrel. U.S. crude futures were trading above $82 on Monday. She also said the Biden administration's liquefied natural gas permitting pause "will be long behind us by this time next year." She did not say when the export authorizations could resume, but ruled out estimates of a 10- to 14-month delay, calling the pause temporary and for study purposes only. "The LNG pause should not be impacting major decisions globally, because it is simply a temporary pause," the secretary said, when asked about worries of higher coal buying in Asia. The $60 a barrel price cap on Russian oil imposed by the U.S. and G7 allies was effective, Granholm said, adding the U.S. would continue to evaluate appropriate price levels as circumstances change. The price cap imposed in December 2022 by the Group of Seven 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. 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/ceraweek-us-return-emergency-oil-reserve-prior-levels-by-year-end-2024-03-18/
2024-03-18 20:38
Nvidia AI developer conference kicks off with new chips in focus Alphabet jumps on report of talks to build Gemini AI into iPhone Nasdaq says issues impacting connectivity resolved Indexes up: Dow 0.20%, S&P 0.63%, Nasdaq 0.82% March 18 (Reuters) - Wall Street's main indexes closed higher on Monday, with megacap growth stocks such as Alphabet and Tesla supporting a rebound in technology-heavy Nasdaq while investors also waited anxiously for the U.S. Federal Reserve's meeting this week. Google's parent Alphabet (GOOGL.O) , opens new tab provided a sizeable boost to the market after a media report that Apple (AAPL.O) , opens new tab is in talks to build Google's Gemini AI engine into the iPhone. This supported the communication services sector (.SPLRCL) , opens new tab, which ended up almost 3%, leading gains among the 11 major S&P 500 sectors after hitting its highest level since Sept. 2021. Tesla (TSLA.O) , opens new tab shares finished up 6.3%, leading S&P 500 percentage gains, after the electric carmaker said it would soon increase the price of its Model Y EVs in parts of Europe. Nvidia (NVDA.O) , opens new tab shares added 0.7% but closed well below its session high. The artificial intelligence poster-child kicked off its annual developer conference as investors waited for new chip announcements from Chief Executive Jensen Huang. Investors were torn between enthusiasm about the prospects for AI on the technology sector and worries ahead to the Federal Reserve's policy update on Wednesday, according to Lindsey Bell, chief strategist at 248 Ventures in Charlotte, North Carolina. "This is a market that really wants to hold onto the momentum trade but what's really weighing on investors' minds is what happens with the Fed this week," said Bell. "The market is sitting comfortably with the first cut coming in June or July but not entirely confident it'll be the case. The question is if it gets pushed out further." The Dow Jones Industrial Average (.DJI) , opens new tab rose 75.66 points, or 0.20% , to 38,790.43, the S&P 500 (.SPX) , opens new tab gained 32.33 points, or 0.63%, to 5,149.42 and the Nasdaq Composite (.IXIC) , opens new tab gained 130.27 points, or 0.82%, to 16,103.45. The Nasdaq snapped three straight days of losses. The Philadelphia Semiconductor index (.SOX) , opens new tab gave up gains to end the day virtually unchanged while the S&P 500 technology index (.SPLRCT) , opens new tab finished up 0.5%. Of the S&P's 11 major sectors the weakest were rate sensitive real estate (.SPLRCR) , opens new tab and healthcare (.SPXHC) , opens new tab, with both off 0.02%. Stronger-than-expected inflation , opens new tab figures have prompted traders to rethink when and by how much policymakers will lower rates this year, with traders pulling back the probability for a June rate cut , opens new tab to around 51% from about 71% just a week ago, according to the CME FedWatch Tool. If the Fed were to take a hawkish tone when its policy meeting concludes on Wednesday, this could pressure stocks. "The fact we're up today provides investors with an opportunity to take profits ahead of the Fed which is more likely to disappoint than to support the recent rally in risk assets," said Sameer Samana, Senior Global Market Strategist at Wells Fargo Investment Institute in Charlotte. Goldman Sachs on Monday said they now expect three interest rate cuts in 2024, compared with four expected earlier, after inflation came in a bit firmer than expected. "With the market near recent highs it's very difficult to see what could provide an upside spark from here. It's not hard to imagine the things that could cause disappointment," said Samana citing the Fed and high valuations for tech stocks. Exchange operator Nasdaq (NDAQ.O) , opens new tab said it resolved an issue related to connectivity and stock orders that had affected early trading for more than two hours on Monday. U.S.-listed shares of Xpeng added 1.9% on its plans to launch a cheaper EV brand amid fierce price competition. Boeing (BA.N) , opens new tab finished down 1.5% after a media report that a federal grand jury in Seattle issued a subpoena to the planemaker over the Jan. 5 midair blowout of a Boeing door plug on an Alaska Airlines (ALK.N) , opens new tab flight. Super Micro Computer (SMCI.O) , opens new tab, which joined the S&P 500 on Monday, gave up earlier gains to close down 6.4%, making it the biggest percentage decliner on the day in the benchmark index. However, the stock, which has rallied furiously recently on bets it would benefit from AI, is still up more than 252% for the year-to-date. Advancing issues outnumbered decliners by a 1.17-to-1 ratio on the NYSE where there were 224 new highs and 58 new lows. On the Nasdaq 1,905 stocks rose and 2,400 fell as declining issues outnumbered advancers by about a 1.26-to-1 ratio. The S&P 500 posted 41 new 52-week highs and one new low while the Nasdaq recorded 102 new highs and 131 new lows. On U.S. exchanges 11.16 billion shares changed hands compared with the 12.41 billion average for the last 20 sessions. 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/sp-500-nasdaq-futures-tick-up-ahead-fed-meeting-ai-conference-2024-03-18/
2024-03-18 20:33
Exxon could raise its stake in Guyana's consortium to 75% CEO Woods says no timeframe estimate for reaching resolution Exxon open to talks with Chevron, Hess, CEO says HOUSTON, March 18 (Reuters) - Exxon Mobil (XOM.N) , opens new tab CEO Darren Woods on Monday said his company is trying to establish it has rights over Hess Corp's (HES.N) , opens new tab Guyana assets in its dispute with Chevron (CVX.N) , opens new tab, not buy the company itself. In his first public remarks on the company's pursuit of an arbitration case that could block Chevron's $53 billion deal for Hess, Woods said Exxon would not have waited for Chevron to announce its Hess deal if it had wanted to buy Hess. "We're basically standing up for what we believe is a fundamental right," Woods told Reuters at the CERAWeek energy conference in Houston. Exxon is trying to "secure and confirm the rights in that contract gives the existing partners." Chevron and Hess have said they disagree with Exxon's interpretation of the joint operating agreement that governs the consortium responsible for all of Guyana's oil production and which Exxon claims includes a right of first refusal. The document has not been made public. Hess has said the deal may not be able to close by its prior estimate of mid-2024. PRIZED ASSET Exxon does not rule out acquiring Hess' entire 30% share in the giant Stabroek block offshore of Guyana, which would take its stake to 75%. Exxon currently holds a 45% stake with Hess and China's CNOOC Ltd (0883.HK) , opens new tab as minority partners. Stabroek is the prize in Chevron's bid for Hess. It is the site of the largest oil discoveries in almost two decades and is expected to produce more than 1.2 million barrels of oil and gas per day by 2027. A potential acquisition of Hess' assets in Guyana would be the last decision in a three-stage process, Woods said. Exxon first wants to establish that it holds preferential rights over Hess Guyana's asset, Woods said. Then it aims to determine the Hess asset's value with partners before considering if it makes sense for Exxon to shoulder the investment required for holding a larger share of the block, the CEO said. "We've got to get past the first hurdle, which is an alignment, an agreement that a preemption right exists in the contract," Woods said. He left open the possibility of an offer for some or all of the stake. "I don't feel locked into a 75% number," the sum of Exxon and Hess's current stakes, Woods said. "That is one of the options. And one of the considerations with that option would be the capital requirements that we comfortable with." A Chevron spokesman did not reply to request for comment on Woods' remarks. TIMING Exxon understands Hess' desire to resolve the matter and will "be very cooperative and try to facilitate a fast resolution" of the preemption of rights dispute, Woods said. He said he does not have "a good view" on timing for final resolution on the destiny of Hess' assets. The arbitration case could last five to six months, another executive had said. Determining how Chevron's proposed acquisition of Hess will translate into a value for Hess asset in Guyana will be the second stage of debate and one that will not be "a straightforward black and white process," Woods said. "There will be, you know, a lot of discussion that happens between the parties," the CEO said. Woods declined to comment on whether he would meet this week with Chevron CEO Michael Wirth or Hess CEO John Hess. Chevron and Hess were first to disclose in filings that Exxon intended to bring the dispute to arbitration. "One of the challenges of this particular deal is it went public," Woods said. "A lot of those discussions (about contract terms) needed to happen and hadn't been happening". Exxon does business with Chevron all around the world and will continue to have long partnerships with Chevron, Woods said. "This is a business issue," Woods said. "We are going to be a constructive force as we work to get to the right answer." Get U.S. personal finance tips and insight straight to your inbox with the Reuters On the Money newsletter. Sign up here. https://www.reuters.com/markets/deals/ceraweek-exxon-mobil-ceo-says-not-trying-acquire-hess-2024-03-18/
