2024-03-15 10:51

TOKYO, March 15 (Reuters) - A group of Japanese energy firms including Mitsubishi's wind power unit (8058.T) , opens new tab, JERA and Tokyo Gas (9531.T) , opens new tab, have set up an association to boost the development of floating offshore wind farms and jointly create technology, they said on Friday. Japan aims to become a major offshore wind power producer, with the government targeting 10 gigawatt (GW) projects by 2030 and up to 45 GW by 2040 as part of its decarbonisation push, for which floating offshore wind is essential. The group of 14 companies said they have set up the Floating Offshore Wind Technology Research Association to realise commercialisation of large-scale floating offshore wind farms in a wide area by jointly developing technology and creating international standards with overseas organisations. Floating offshore wind power is seen as a way to ensure Japan has a stable and sustainable energy supply and its development will also stimulate the local economy and promote Japanese industries, the group said in a statement. Other members include Nippon Telegraph and Telephone's energy unit (9432.T) , opens new tab, Tohoku Electric Power (9506.T) , opens new tab, Kansai Electric Power (9503.T) , opens new tab and Marubeni Corp's wind power unit (8002.T) , opens new tab. The move, first reported by a local media, comes as the Japanese government this week approved a draft amendment to existing legislation to allow for the installation of offshore wind power in exclusive economic zones (EEZ), a milestone towards the country's goal of carbon neutrality by 2050. The new legislation would allow wind farms to be installed further out to sea from current territorial and internal waters as EEZs are non-territorial waters where maritime nations claim mineral exploration and fishing rights. 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/japanese-firms-join-forces-promote-floating-offshore-wind-power-development-2024-03-15/

2024-03-15 10:28

LONDON, March 15 (Reuters) - The British public's expectations for the pace of inflation over the coming year have fallen over the past three months, a Bank of England survey showed on Friday, which may reassure policymakers who are considering when to cut interest rates. Median expectations for inflation for the next 12 months fell to their lowest since August 2021 at 3.0% in February, down from 3.3% in November, the survey showed. Expectations for the 12 months after that were unchanged at 2.8%, while longer-term expectations fell to 3.1% from 3.2%. Consumer price inflation was 4.0% in January and December, double the BoE's target. Data due on Wednesday is expected to show it fell to 3.6% in February, according to preliminary figures from a Reuters poll of economists. While the public's expectations for future inflation are not a good direct prediction of price growth, BoE economists look at them as a guide to future pressure for higher wages and how willing households will be to accept higher prices. The BoE forecasts that inflation will return to its 2% target for the first time in three years in the second quarter of this year, but it also expects inflation will rise back towards 3% later in the year as the impact of lower energy prices fades. Annual wage growth of around 6% is roughly double its rate before the COVID-19 pandemic, when inflation was under control. Thursday's survey - which polled more than 4,000 people between Feb. 2 and Feb. 20 - showed that net satisfaction with the BoE's control of inflation rose to minus 5% from minus 14% in November. The difference between the percentage of people satisfied and dissatisfied with the BoE's performance hit a record low minus 21% in August 2023. Last month the BoE said that interest rates at a 16-year high of 5.25% were "under review" but a rate cut was unlikely in the immediate future as wage growth and services price inflation was too high. Economists polled by Reuters expect the BoE to keep rates on hold when it announces its March rate decision on Thursday. But they expect a first cut no later than the third quarter of 2024, with a 40% chance of a move in the second quarter. Friday's survey showed 26% of the public expected a cut in interest rates over the coming year - up from 16% in November - but 36% expected rates to rise further. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/world/uk/uk-publics-inflation-expectations-fall-bank-england-survey-shows-2024-03-15/

2024-03-15 10:18

LONDON, March 15 (Reuters) - Octopus Energy's generation arm said on Friday it was investing in German renewables developer Lintas Green Energy to speed up the company's growth across the country. Octopus’ Sky fund will take a 50% stake in Lintas Green Energy, it said. The investment will help to build new wind and solar farms, with a target of 1 gigawatts of capacity by 2030, which is enough to power 370,000 German homes. The value of the deal was not disclosed but Octopus said the funding should also help Lintas Green Energy to form energy supply deals to enable energy-intensive businesses to decarbonise their operations. Octopus said it was increasing its renewables activity in Germany, with plans to invest more than 1 billion euros ($1.1 billion) into the country’s clean energy infrastructure by 2027. ($1 = 0.9183 euros) 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/octopus-energy-invests-german-renewables-firm-lintas-green-energy-2024-03-15/

2024-03-15 10:14

MILAN, March 15 (Reuters) - Italy's Saipem (SPMI.MI) , opens new tab said on Friday it had signed a memorandum of understanding (MOU) to develop offshore infrastructure to transport and store carbon dioxide for a cluster of carbon capture projects in northern England. The MOU was signed with the Northern Endurance Partnership (NEP) and Net Zero Teesside Power (NZT Power). The two projects are expected to transport and store some 4 million tonnes of carbon dioxide each year from 2027. Saipem will be responsible for the engineering, supply, construction and installation of a 145-kilometre (90 miles) offshore conduct, as well as inspections, for the NEP project. It will provide the engineering, supply, construction and installation for a drainage line for the NZT Power project. Offshore operations will be carried out by Saipem's Castorone vessel, while those closer to the coast will be carried out by the Castoro 10 barge. BP (BP.L) , opens new tab, Norway's Equinor (EQNR.OL) , opens new tab and France's TotalEnergies (TTEF.PA) , opens new tab are partners in the NEP project. NZT Power is a joint venture between BP and Equinor. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/sustainability/italys-saipem-signs-preliminary-uk-deal-co2-transport-storage-2024-03-15/

2024-03-15 10:04

A look at the day ahead in U.S. and global markets from Mike Dolan With next week's Federal Reserve meeting up close and personal - once a hot favourite date for a first rate cut - this is not the outcome the bond market bargained for at the turn of the year. A second U.S. inflation disappointment in the space of a week, the biggest annual oil price gains since 2022 and a very real chance the Bank of Japan ends its long-standing negative interest rate policy as soon as Tuesday all took a toll on Treasuries over the past 24 hours. With futures now doubting a rate cut will come at all in the first half of the year - and more than 50 basis points lopped off expectations for the whole easing cycle since January - Treasury yields surged again on Thursday. Markets are now expected less than half the 2024 rate cuts they saw eight weeks ago. Both 2-year and 10-year Treasury yields , jumped more than 10bp each after stickiness seen in February's consumer prices earlier in the week was matched by equally stubborn producer prices for the month - while supply concerns accelerated year-on-year oil prices close to 20% and crude hit its highest for the year. In price terms, two-year Treasuries are now negative for the year, while 10-year notes are down 7%. With the whole Fed horizon being revised higher, the dollar (.DXY) , opens new tab has rebounded to best levels in over a week. Friday saw some calming as yields and oil prices fell back a touch. To be sure, there were plenty of caveats around the latest sweep of data. Although both above forecast, annual headline and core PPI numbers are still 2% or less, last month's retail sales rebound was less than expected and industry output readings are expected to be flat for the month when released later today. But it makes for an uncomfortable backdrop going into next week's central bank meetings nonetheless. And the rumble in rates was enough to sideswipe stocks again too - with small cap indexes (.RUT) , opens new tab taking the brunt with losses of almost 2% on Thursday. Against all that, relatively modest 0.3% losses in the S&P500 (.SPX) , opens new tab and Nasdaq (.IXIC) , opens new tab were impressive and futures were steady early Friday. That said, the equal-weighted S&P500 (.EWGSPC) , opens new tab did lose almost 1% and AI-leader Nvidia (.NVDA.O) , opens new tab dropped 3%. And the ongoing swoon in Tesla (TSLA.O) , opens new tab continued to alarm as the electric vehicle giant's losses for the year to date hit 35% - knocking some $250 billion from its market value as it dropped another 4% on Thursday. Dogged by sluggish EV demand in the first quarter, a price war and intense competition from China peers - not to mention a German arson shutdown in one of its factories and noise around chief executive Elon Musk's $56 billion pay package - the stock losses are mounting. Tesla has replaced Boeing as the worst performing stock on the S&P 500 index so far this year. Ten out of 48 brokerages rate the stock "sell" or "strong sell", according to LSEG data. Elsewhere, Bitcoin eased to a one-week low in volatile trade, as investors took profit from its run to a record high after the upside U.S. inflation surprise. It fell more than 5% in the Asian session to at low at $66,629. In Japan, speculation about a BOJ policy tightening next week intensified and dragged the Nikkei (.N225) , opens new tab lower again. Japan's biggest companies agreed to hike wages by 5.28% for 2024, the highest in 33 years, the country's largest union group Rengo said on Friday, reinforcing views that the central bank will soon shift away from a decade-long stimulus programme. The yen weakened, however - perhaps as much to do with the dollar's jump on the Fed rethink. European stocks fell back from Thursday's records but were steadier early on Friday. Chinese stocks were more mixed, with Hong Kong's index (.HSI) , opens new tab falling as property worries continue to jar. China's new home prices dropped for an eighth straight month in February, suggesting the fragile property market is struggling to find a bottom despite a slew of measures to shore up the sector. New home prices fell 1.4% over the year - faster than the 0.7% drop in January and the biggest decline in 13 months. Key diary items that may provide direction to U.S. markets later on Friday: * U.S. Feb industrial production, Feb import/export prices, New York Fed March manufacturing survey, University of Michigan March consumer survey; Canada Feb housing starts * European Central Bank chief economist Philip Lane speaks * U.S. Energy Secretary Jennifer Granholm hosts EU-US Energy Council meeting in Washington * French President Emmanuel Macron and Polish Prime Minister Donald Tusk meet German Chancellor Olaf Scholz in Berlin * U.S. corp earnings: Jabil, Groupon, GigaCloud 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/global-markets-view-usa-2024-03-15/

2024-03-15 09:55

HELSINKI, March 15 (Reuters) - The European Central Bank council last week began a discussion on when to reduce interest rates, council member Olli Rehn said on Friday. "If inflation continues to fall and, according to our estimation, sustainably downwards towards the target, we can close to the summer already slowly start easing our foot off the brake pedal of monetary policy," Rehn said in a statement. The European Central Bank kept borrowing costs at record high last week but policymakers indicated they were preparing for a first cut in interest rates. Get a look at the day ahead in European and global markets with the Morning Bid Europe newsletter. Sign up here. https://www.reuters.com/markets/europe/ecb-started-discussing-rate-cut-rehn-says-2024-03-15/