2024-01-10 14:36

NEW YORK, Jan 10 (Reuters) - Credit rating agency Fitch no longer forecasts a U.S. recession this year due to several signs of strength in the economy, Fitch Ratings’ Chief Economist Brian Coulton said in a webinar on Wednesday. The Federal Reserve is likely to cut interest rates three times in 2024, he said. Fitch last year downgraded the U.S. government’s top credit rating to AA+ from AAA, citing fiscal deterioration and repeated down-to-the-wire debt ceiling negotiations that threaten the government’s ability to pay its bills. https://www.reuters.com/markets/us/fitch-no-longer-expects-us-recession-forecasts-three-rate-cuts-2024-01-10/

2024-01-10 11:55

Jan 10 (Reuters) - BlackRock (BLK.N) and Ark Investment Management on Wednesday lowered the fees for their proposed spot bitcoin exchange traded funds (ETFs), looking to undercut almost a dozen other competitors racing to launch such investment vehicles. BlackRock's iShares Bitcoin Trust would charge 0.25%, compared with the 0.30% fee set earlier. ARK 21Shares Bitcoin ETF lowered its fee to 0.21% from 0.25%. The aspiring ETF managers have kicked off an unprecedented fee war even before an approval from the U.S. Securities and Exchange Commission for such investment vehicles, emphasizing the urgency with which they are looking to grab a share of the expected capital inflow. Analysts and academics have noted that fees will be an important factor in determining the inflow of new assets, since all of these ETFs are designed to deliver essentially the same return. For the 12 months after the ETF is listed, BlackRock's fee would be 0.12% for the first $5 billion of assets in the fund. That would make it among the cheapest, along with Bitwise Bitcoin ETF which is planning to charge 0.20% and waive off the fee on the first $1 billion of assets for six months after the listing. The revised filings come hours after the SEC said someone briefly accessed its X social media account to post a fake message saying it had approved the long-awaited ETF. Most issuers, however, are still anticipating that the securities regulator will approve these ETFs at some point late Wednesday afternoon, and that they could begin trading as soon as Thursday morning. https://www.reuters.com/business/finance/blackrock-lowers-fee-planned-spot-bitcoin-etf-2024-01-10/

2024-01-10 11:51

This content was produced in Russia, where the law restricts coverage of Russian military operations in Ukraine. MOSCOW, Jan 10 (Reuters) - Spanish firm Windar Renovables has extricated itself from its Russian joint venture, with its 51% stake now held by a St Petersburg-based holding company, a Russian corporate database showed on Wednesday. The change became effective on Dec. 29, the filings showed, making Windar, which manufactures towers for wind turbines, another Western company to secure an exit from Russia since Moscow despatched tens of thousands of troops to Ukraine in February 2022. Windar had been exploring selling its 51% stake in its Russian joint venture to partner and steelmaker Severstal , three people familiar with the matter told Reuters in March 2023. Severstal, which holds a 49% stake in the JV, declined to comment. Windar had no immediate response. https://www.reuters.com/markets/europe/spains-windar-renovables-exits-russian-jv-russian-corporate-filings-show-2024-01-10/

2024-01-10 11:50

Jan 9 (Reuters) - PJM Interconnection, the biggest U.S. power grid operator, has predicted that mounting electrification of transportation and industry will drive an increase in demand this year. The grid operator in a report on Monday said it expected a load of 151,254 MW and 134,663 for 2024 summer and winter respectively. It also sees electricity demand growth at 1.7% per year for summer peaks and 2% for winter peaks. "The PJM footprint has about 500,000 light-duty EVs in 2024, and S&P Global is forecasting about 23 million light-duty EVs by 2039, a growth rate of just under 30% annually during that period," the company said in a release. PJM sees summer peak load increasing to 178,895 MW in 2034 and 193,123 in 2039. Similarly, the winter peak is expected to rise from 164,824 MW in 2034 to 178,241 MW in 2039. "It also underscores the need to maintain and develop enough generation resources to serve that growing demand," said Kenneth S. Seiler, Senior Vice President of planning. The U.S. eastern grid operator expects to clear 300 new power generation projects totaling 26,000 Megawatt (MW) in 2024 under its overhauled review process. The grid operator, which coordinates transmission across all or parts of 13 states from Indiana to Virginia, also identified an additional 46,000 MW of projects that should be able to clear its study process and be ready for construction by mid-2025. Meanwhile, a settlement of $1.2 billion between PJM Interconnection and over 80 parties was accepted by the Federal Energy Regulatory Commission (FERC) in response to complaints regarding a significant outage that occurred during a winter storm in 2022. https://www.reuters.com/business/energy/top-us-grid-operator-sees-electric-vehicles-industry-driving-up-peak-power-2024-01-09/

2024-01-10 11:41

ROME, Jan 10 (Reuters) - Yemen's Houthi attacks on Red Sea shipping must be stopped without triggering a new war, the Italian defence minister said on Wednesday, as the Iranian-backed militia steps up attacks on commercial vessels. U.S. and British forces shot down 21 drones and missiles fired by the Houthis on Tuesday towards international Red Sea shipping lanes, the U.S. military's Central Command said, adding it was the 26th such Houthi attack since Nov. 19. "It is a huge problem, it is a consequence of other (war) outbreaks. I would not like to open a third front of war at this time," Guido Crosetto told Reuters, in a reference to current conflicts in Ukraine and Gaza. The Houthis have vowed to continue the attacks until Israel halts the conflict in Gaza, and has said that it would strike U.S. warships if the militia group itself was attacked in Yemen. The United States and other countries last month launched Operation Prosperity Guardian to protect civilian vessels in the one of the most important trade routes in the world. Italy announced in December it would send a naval vessel to the area following requests for back-up from ship owners, but it has not signed up to the U.S.-led mission, with other EU allies also appearing to distance themselves from the initiative. Crosetto said parliament would need to approve Italian naval involvement in Operation Prosperity Guardian, complicating any eventual adherence. "There is a thing called Constitution, and there are laws for which a new international mission needs parliamentary approval, needs separate funding," Crosetto said. "If we decide to do so (join Prosperity Guardian), it will be a decision that goes through a cabinet meeting, reaches parliament and is voted on by the (two) chambers." https://www.reuters.com/world/europe/red-sea-security-must-be-achieved-without-new-war-italian-minister-says-2024-01-10/

2024-01-10 11:31

LONDON, Jan 10 (Reuters) - Sterling steadied on Wednesday ahead of a speech by Bank of England (BoE) Governor Andrew Bailey to British lawmakers, with markets closely watching the testimony for clues on the path of monetary policy. BoE chief Bailey and other top central bank officials will respond to questions from the Treasury Committee at 1415 GMT on the Financial Stability Report published on Dec 6. "Any comment surrounding the outlook for inflation or interest rates could drive sterling," said Fiona Cincotta, Senior Financial Market Analyst at City Index. Sterling edged 0.14% higher against the dollar at $1.2728. Against the euro , the pound flattened at 86.04 pence, after rising to an almost one-month high on Tuesday. Supporting sterling, traders have cut back expectations of BoE rate cuts this year. Money markets are currently pricing in around 115 basis points (bps) of BoE rate cuts in 2024, compared with 140 bps last Thursday, according to money market pricing. Francesco Pesole, FX strategist at ING, said he expected Bailey's tone on the future path of monetary policy to be in line with his words at the BoE's latest meeting. The BoE said it expects to keep rates elevated for some time to ensure that the 2022 surge in inflation is well in the past. "Bailey focused on pouring cold water on rate cut bets," he said. Inflation in the UK fell more than expected in November to 3.9%, from 4.6% in October, but remains the highest in the G7 group of countries. Bailey’s testimony comes ahead of a key reading on UK gross domestic product (GDP) due on Friday, which is expected to show the economy contracted by 0.1% in the three months to November. Official data published last month suggested the UK economy could already be in a mild recession, but various business surveys last week suggested Britain's economy was more resilient than feared in December. "We remain of the view that a deterioration in economic conditions in the UK will ultimately warrant substantial BoE rate cuts," Pesole said. ING expects 100 bps in BoE cuts in 2024. https://www.reuters.com/markets/currencies/sterling-steadies-ahead-boe-chief-testimony-lawmakers-2024-01-10/