2024-03-12 19:56
Canadian dollar weakens 0.1% against the greenback Touches a five-day low at 1.3525 Price of U.S. oil settles 0.5% lower Canadian bond yields rise across the curve TORONTO, March 12 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Tuesday as investors weighed prospects of central banks delaying a move to interest rate cuts following heated U.S. inflation data. The loonie was trading 0.1% lower at 1.3495 to the U.S. dollar, or 74.10 U.S. cents, after touching its weakest intraday level since Thursday at 1.3525. "The U.S. dollar is broadly higher on a hotter inflation report and that's the whole story in the currency market today," said Adam Button, chief currency analyst at ForexLive. U.S. consumer prices increased solidly in February amid higher costs for gasoline and shelter, suggesting some stickiness in inflation that could delay an anticipated June interest rate cut from the Federal Reserve. The Bank of Canada may not want to diverge too much from the Fed if it leads to a weaker Canadian dollar and higher import costs, say analysts. "If central bankers stay sidelined then economic risks begin to build for 2025 around global growth and Canadian growth," Button said. Canada is a major producer of commodities, including oil, so the loonie tends to be sensitive to the global economic outlook. U.S. crude oil futures fell for a fourth straight day, settling 0.5% lower at $77.56 a barrel. The Bank of Canada last Wednesday said it was too early to consider easing rates as it kept its benchmark rate on hold at a 22-year high of 5%. Canadian government bond yields moved higher across the curve, tracking moves in U.S. Treasuries. The 10-year was up 3.7 basis points at 3.394%. Keep up with the latest medical breakthroughs and healthcare trends with the Reuters Health Rounds newsletter. Sign up here. https://www.reuters.com/markets/currencies/canadian-dollar-hits-five-day-low-us-inflation-data-2024-03-12/
2024-03-12 19:55
BUENOS AIRES, March 12 (Reuters) - Argentina's monthly inflation rate slowed down more than expected to come in at 13.2% in February, a boost for libertarian President Javier Milei who is pushing tough austerity to try to tame the world's fastest-rising prices. The still sky-high monthly rate, published on Tuesday, marks a deceleration from January, when prices rose 20.6%, and December, when they were up 25.5%. Analysts polled by Reuters had expected February's inflation rate to land at around 15%. The 12-month rate through February, however, rose to 276.2%, below a poll forecast of 282.1%, but cementing Argentina's position as having the world's worst inflation, which is hammering people's spending power and driving up poverty. "The impact of the cost of food is just brutal," said Ines Ambrosini, a 62-year-old who shops in wholesale markets to find deals. "Everything costs a lot of money, the food, the fruit, the vegetables, the meat, the dairy products." Milei, battling an inherited crisis, has rolled out some tough measures to combat inflation, including painful cuts to state spending, targeting subsidies for things like utilities and transport, while looking to streamline welfare programs. His government devalued the peso by over 50% in December, which caused prices to leap even faster, so he needs to demonstrate - and quickly - that his economic plan is bearing fruit to keep people onside and avoid unrest on the streets. Sandra Boluch, a fruit and vegetable seller at a market in Buenos Aires, said she was seeing a worrying trend as inflation soars: sliding sales and more people scavenging for what she throws away, hoping to find enough for a meal. Poverty is heading toward 60%, according to a report in February, while UNICEF warned on Tuesday that child poverty in Argentina could even hit 70% in the first quarter of the year unless protections were strengthened. "We have some containers in the back where the garbage is disposed of and when you go with a box, you see 20 people coming up to you to see what they can take as a plate of food to their table," said Boluch, adding that the numbers coming was rising. "The truth is that it's something very tough, very sad because there are a lot of people and a lot of older people." Milei's office on social media platform X said after the data was published that the slowdown was due to the government's work to impose "strong fiscal discipline." In a sign of confidence on inflation, the central bank late on Monday cut the interest rate to 80% late. However, the president has signaled that March could be "complicated," as signals in the economy have looked bleak, with tumbling sales, activity and production. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/world/americas/argentina-inflation-cools-more-than-expected-february-hits-276-annually-2024-03-12/
2024-03-12 19:41
March 12 (Reuters) - U.S. power consumption will rise to record highs in 2024 and 2025, the U.S. Energy Information Administration (EIA) said in its Short Term Energy Outlook (STEO) on Tuesday. EIA projected power demand will rise to 4,099 billion kilowatt-hours (kWh) in 2024 and 4,128 billion kWh in 2025. That compares with 4,000 billion kWh in 2023 and a record 4,003 billion kWh in 2018. As homes and businesses use more electricity instead of fossil fuels for heat and transportation, EIA forecast 2024 power sales would rise to 1,511 billion kWh for residential consumers, 1,396 billion kWh for commercial customers and 1,042 billion kWh for industrial customers. That compares with all-time highs of 1,509 billion kWh for residential consumers in 2022, 1,391 billion kWh in 2022 for commercial customers and 1,064 billion kWh in 2000 for industrial customers. EIA said natural gas' share of power generation would hold at 42% in 2024, the same as 2023, before easing to 41% in 2025. Coal's share will drop from 17% in 2023 to 15% in 2024 and 14% in 2025 as renewable output rises. The percentage of renewable generation will rise from 21% in 2023 to 24% in 2024 and 25% in 2025, while nuclear power's share will hold at 19% in 2023, 2024 and 2025. EIA projected 2024 gas sales would rise to 12.41 billion cubic feet per day (bcfd) for residential consumers, 9.17 bcfd for commercial customers and 35.98 bcfd for power generation, but slide to 23.19 bcfd for industrial customers. That compares with all-time highs of 14.32 bcfd in 1996 for residential consumers, 9.63 bcfd in 2018 for commercial customers, 23.80 bcfd in 1973 for industrial customers and 35.43 bcfd in 2023 for 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-use-reach-record-highs-2024-2025-eia-2024-03-12/
2024-03-12 19:20
March 12 (Reuters) - The U.S. Energy Information Administration (EIA) on Tuesday predicted that domestic oil production will grow by 260,000 barrels per day (bpd) in 2024, up 90,000 barrels per day (bpd) from its previous forecast, but said estimated production cuts from OPEC+ will still slow global oil growth. U.S. crude oil production will rise to 13.19 million barrels per day (bpd) this year, the EIA said in its Short-Term Energy Outlook (STEO). It had previously projected that crude production would rise this year by 170,000 bpd. U.S. crude oil output reached a record 13.3 million bpd in December 2023, following sustained productivity increases at new wells. Production notched an annual record of 13.21 million bpd in 2023. U.S. oil production is expected to rise by 460,000 bpd to 13.65 bpd in 2025, which would be a record high. OPEC+ production cuts will help push the Brent crude oil spot price to average $87 a barrel in 2024, up from its previous forecast of $82.42 a barrel, the EIA forecast. The agency previously predicted that U.S. production would decrease slightly through the middle of 2024 and would not exceed the record set last December until February 2025. However, the agency now forecasts steadily increasing production with output surpassing last year’s record by the fourth quarter of 2024. The U.S. EIA predicted world oil demand output would grow by 1.43 million bpd year-on-year, up 10,000 from its previous forecast and in line with the International Energy Agency. The EIA also raised its 2025 world oil demand growth forecast by 90,000 bpd, anticipating a 1.38 million barrel year-on-year increase. In February this year, the IEA predicted global demand will rise by 1.22 million barrels per day (bpd) in 2024, while in its February report OPEC expected 2.25 million bpd. The difference is about 1% of world demand. U.S. total petroleum consumption is expected to rise by 200,000 bpd to 20.4 million bpd in 2024, and then by another 200,000 bpd to 20.6 million bpd in 2025 – higher than previously forecast, the EIA said. 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-raises-crude-production-growth-forecast-2024-2024-03-12/
2024-03-12 19:06
ROME, March 12 (Reuters) - An Italian company has conducted what it says is the first test of magnetic levitation (maglev) transport on an existing railway track, a technology that has the potential to reduce costs and energy use as the industry seeks more efficient systems. IronLev, a high-tech firm headquartered in the northern Italian town of Treviso, showcased a video of the test at the LetExpo2024 trade fair in the Veneto region on Tuesday. The footage shows a one-ton prototype traveling at a speed of 70 km/h (43 mph) over a two-kilometre stretch of line in the hinterland of Venice. Maglev creates a cushion of air that physically separates the vehicle from the track, reducing friction, noise and vibrations. The absence of friction makes it possible to drastically reduce energy consumption and maintenance costs for both the vehicle and the infrastructure. China has been using the technology for almost two decades, albeit on a limited scale. Countries from Japan to Germany have been looking to develop maglev networks, but high costs and incompatibility with existing track infrastructure pose hurdles. "The test carried out by IronLev represents the first and only case of magnetic levitation applied to an existing railway track without requiring the modification or integration of accessory elements," said Massimo Bergamasco, director of the Institute of Mechanical Intelligence at the Scuola Superiore Sant'Anna in Pisa. The maglev technologies tested in the past involve the use of an ad-hoc infrastructure to create a magnetic field that interacts with elements on board the vehicle to suspend the load. Such infrastructure often consists of coils made of conducting material, with high infrastructure costs when compared to traditional railway track. "Some of our competitors have carried out tests on specific tracks built to accommodate a magnetic levitation vehicle. We have demonstrated that our vehicle can levitate on an existing track," Adriano Girotto, IronLev's chairman told Reuters. "You can imagine that this makes it an easily usable technology," he added in an interview. IronLev aims to develop an additional motorised trolley in a couple of years to test a vehicle with weights of up to 20 tonnes and speeds of up to 200 km/h, Girotto said. Meanwhile, the company has already begun implementing its technology in practical applications, using it to move heavy windows, elevators, and to transport loads within industrial settings. The Technology Roundup newsletter brings the latest news and trends straight to your inbox. Sign up here. https://www.reuters.com/technology/italian-firm-tests-energy-saving-maglev-technology-railway-track-2024-03-12/
2024-03-12 19:05
U.S. airline shares fall in afternoon trade Southwest says 2024 capacity could take a hit Alaska says 2024 capacity plans in "flux" March 12 (Reuters) - U.S. carriers warned on Tuesday that their plans to increase capacity were in doubt due to more jet delivery delays from Boeing (BA.N) , opens new tab, as the hit to the airline industry from the planemaker's safety crisis worsens. The airline industry has cut expectations for deliveries this year due to Boeing's problems, complicating their efforts to meet record travel demand. Boeing has been under heavy regulatory scrutiny following a harrowing Jan. 5 midair panel blowout incident that led to probes into the company's safety and quality standards in its production process. "Boeing deliveries are going to be way behind this year," United Airlines (UAL.O) , opens new tab CEO Scott Kirby said at a conference organized by J.P. Morgan, adding that it was "impossible to say when MAX 10 is going to get certified." The carrier's shares fell 3.3% on Tuesday. United has approached Airbus about buying more A321neo jets to fill the potential void left by delays in Boeing's larger 737 MAX 10, expected to be certified after MAX 7. If the price of A321 does not work for the carrier, it will rely more on MAX 9 that has 179 seats, and would be ready to convert its orders back to MAX 10 once the jet that has 185 seats in its current configuration gets certified, Kirby said. Heavy backlogs make it hard for airlines to shift orders to rival Airbus (AIR.PA) , opens new tab, the only other large commercial aircraft manufacturer globally. Earlier this year, United had said it was going to build a fleet plan excluding MAX 10. Rival Southwest Airlines (LUV.N) , opens new tab said on Tuesday it expects 42% less MAX deliveries this year from Boeing than previously estimated, and that will likely result in a cut in its 2024 capacity. It is the second time Southwest cut its delivery forecast this year. Shares of the company were down 14.6%. Boeing has advised Southwest to expect 46 jets in 2024, all of which will be the MAX 8 variant, down from the previous expectation of 79 jets, which included the MAX 7 version, the airline said in a filing on Tuesday. The deliveries will not include MAX 7, which is delayed and still waiting for a FAA certification. Southwest had previously expected 21 MAX 7 jets this year. Southwest CEO Bob Jordan said he "would not be surprised" if the latest forecast changed again, even as the company highlighted the need to reduce capacity and "re-optimize schedules" for the second half of 2024, which it expects to result in a full-year capacity cut by one full point. Alaska Air Group (ALK.N) , opens new tab also said its 2024 capacity plans were still in flux due to the Boeing crisis. The airline does not expect to get all of the 47 planned aircraft deliveries from Boeing over the next two years, CEO Ben Minicucci said on Tuesday. "We are squarely focused on implementing changes to strengthen quality across our production system and taking the necessary time to deliver high quality airplanes that meet all regulatory requirements," Boeing said in a statement on Tuesday after remarks from U.S. airline chiefs. "We continue to stay in close contact with our valued customers about these issues and our actions to address them." Boeing shares fell 4.6% as the planemaker said it had delivered 27 airplanes in February, down one unit from the same month a year earlier. Make sense of the latest ESG trends affecting companies and governments with the Reuters Sustainable Switch newsletter. Sign up here. https://www.reuters.com/business/aerospace-defense/southwest-cuts-delivery-forecast-boeing-2024-03-12/
