2023-10-30 21:02
OTTAWA, Oct 30 (Reuters) - The leader of the Canadian province of Saskatchewan on Monday vowed to stop collecting the federal carbon tax on homes heated with natural gas from 2024 if Ottawa does not expand an exemption announced last week for the Atlantic provinces. On Thursday, Prime Minister Justin Trudeau said he would pause the carbon levy on heating oil for Atlantic Canada to offset the high price of the fuel that is mainly used in the Maritime provinces and help them counter cost-of-living increases. Saskatchewan Premier Scott Moe said his province deserved the same treatment except in his province people use natural gas for heating, not oil. "I cannot accept the federal government giving an affordability break to people in one part of Canada, but not here," Moe said in a video posted on social media platform X. If the federal government does not extend the exemption, Saskatchewan "will stop collecting and submitting the carbon tax on natural gas" starting on Jan. 1. Alberta Premier Danielle Smith has also complained that her province was not included in the carbon tax pause on heating. Ontario Premier Doug Ford urged the government to eliminate carbon pricing altogether. Canada, the world's fourth-largest oil producer, is aiming to cut emissions 40-45% below 2005 levels by 2030 and a steadily rising carbon price that will hit C$170 a tonne by 2030, from C$65 a tonne currently, is a key part of their plan. Conservative opposition leader Pierre Poilievre is holding rallies to "axe" the carbon tax, a message that has resonated amid high inflation. While an election could be two years away, Poilievre would win if one were held now, polls show. Until last week, Trudeau had always maintained that consumers who pay the carbon tax received a full rebate and that it did not affect the cost of living. Saskatchewan and other provinces had previously challenged the legality of the carbon tax and lost in a ruling by the Supreme Court. The climate and environment ministry had no immediate comment. https://www.reuters.com/world/americas/saskatchewan-vows-stop-collecting-canadas-carbon-tax-heating-2023-10-30/
2023-10-30 21:02
HOUSTON, Oct 30 (Reuters) - U.S. Department of Energy reviews for liquefied natural gas (LNG) export permits have lengthened under President Joe Biden's administration to 11 months or more, from seven weeks, according to government data. The delay could mean nearly completed LNG projects may not being able to supply big European buyers because of a lack of the permit. Increasing LNG exports is opposed by some U.S. industries who fear it could raise domestic prices, while environmental groups have raised concerns about continued expansion of a fossil fuel industry. Big swaths of U.S. industry - ranging from chemicals, steel, food and agriculture - oppose unrestricted exports of U.S. gas. Export permits represent the most significant limit thus far on an industry hoping to add 50% more to U.S. export capacity by 2026. The average time for issuing an export license for supplying the superchilled gas to some of the biggest buyers of U.S. LNG, non-Free Trade Agreement (non-FTA) countries, has climbed under the Biden administration to over 330 days from 155 days under the Obama administration and 49 days under the Trump administration, according to DOE data. One project, Commonwealth LNG, has been waiting a year after receiving its environmental approval for a permit. Its Cameron, Louisiana, project hopes to start construction in the third quarter of next year with preliminary deals for the sale of 5 million metric tons per annum (MTPA), mainly to non-FTA countries. "Non-FTA approval is essential for any U.S. LNG facility to operate effectively in supplying its product in a global market," said Commonwealth LNG spokesperson Lyle Hanna. While non-FTA approvals have taken longer recently, the company anticipates receiving its export permit in the near future and the DOE has not raised any issues or concerns with its application, Hanna said. New Fortress Energy (NFE.O) filed 11 months ago for a non-FTA authorization for its Altamira FLNG facility, which is near to starting production. But the 1.4 MTPA project will be unable to sell its gas to countries including the Netherlands, U.K., France, Spain and Germany. New Fortress did not respond to a request for comment. "We now on average, wait about 500 days for an LNG export authorization," said Dan Brouillette, former president of Sempra's (SRE.N) LNG development unit and president-elect of utility lobby group, Edison Electric Institute. His measure is larger than Reuters average count for companies that have the required environmental approval in hand. A DOE spokesperson said the agency would not comment on specific projects, but said it considers more than environmental approvals in its non-FTA decisions. It has approved non-FTA authorizations for projects representing almost 45% of the about 103 billion cubic feet per day production of domestic dry gas, the spokesperson said. “There are many factors that can affect the amount of time the U.S. Department of Energy (DOE) needs to review an application, including the issues raised by interveners in any specific proceeding," the spokesperson said. Non-FTA countries are the biggest buyers of U.S. LNG, but the Biden administration's DOE has slowed decisions for economic, political and environmental reasons, says Alex Munton, an LNG analyst at energy consultancy, Rapidan Group. The DOE "is evidently sitting on decisions because of politics," he said. "Without these permits, projects cannot move forward. We're heading toward 2024 elections and the Biden administration is keenly aware of the potential for a political backlash." https://www.reuters.com/business/energy/us-reviews-gas-export-permits-slow-under-biden-administration-2023-10-30/
2023-10-30 20:28
TORONTO, Oct 30 (Reuters) - Shares in First Quantum Minerals (FM.TO) closed down 28% on Monday after Panama's government said it will hold a referendum on whether to scrap a mining contract awarded to the Canadian mining company on Oct. 20. The sell-off wiped C$5.6 billion ($4.1 billion) from the market value of Toronto-listed shares in First Quantum, which operates one the biggest and the newest copper mine in the Central American country. Shares of First Quantum closed at C$20 after falling as much as 30% earlier in the trading session. President Laurentino Cortizo's decision to hold a binding referendum on Dec. 17 comes after 10 months of disputes regarding First Quantum's open pit mine at Cobre Panama. Thousands of people hit the streets over last weekend after the government approved the new contract with the company. Protests against the mine continued on Monday. Panama's electoral board said on Monday that the conditions for a referendum were not favorable amid factors including lack of legal provisions and the short time frame for arranging the vote, adding further complexity to the process. Shortly after, the Panama government said it authorized the interior minister to present a law to mandate the vote. The company's operations were also disrupted as protesters stormed a port used by the company on Sunday. First Quantum said on its website that it condemned the "illegal and violent" attempt to disrupt operations at the port, adding that the incident represents a significant threat to its local unit's operations and the safety of its staff. It did not immediately respond to a request for further comment. Panama's government and the company had agreed to a contract that would guarantee Panama annual income of $375 million while allowing First Quantum's local unit to operate the Cobre Panama mine for at least 20 years. Cobre Panama represents nearly 5% of Panama's gross domestic product and 1.5% of global copper production, according to RBC Capital Markets. "While it may be tempting to buy these shares on (Monday's) weakness, we do not see a clear path to a resolution of this issue aside from either significantly higher royalties or international arbitration," Jefferies said in a note to clients. The issue is likely to be an "overhang" on First Quantam's shares until the outcome of elections in Panama next May, it added. ($1 = 1.3844 Canadian dollars) https://www.reuters.com/world/americas/canadian-miner-first-quantum-slumps-panamas-proposed-referendum-2023-10-30/
2023-10-30 20:19
TSX ends up 0.6% at 18,856.76 Financials add 1.4%; tech ends 2.1% higher First Quantum tumbles on Panama referendum Oil settles 3.8% lower at $82.31 a barrel Oct 30 (Reuters) - Canada's main stock index rose on Monday after eight straight days of decline, helped by gains for financial and technology shares as investors awaited data that could offer clues on the strength of the domestic economy. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) ended up 119.37 points, or 0.6%, at 18,856.76, recovering some ground after it posted on Friday its lowest closing level in one year. Canadian GDP data for August, due for release on Tuesday, is expected to show an increase of 0.1%. "There is a lot of fear that Canada is already getting close to entering a recession, so the GDP number is going to be important," said Greg Taylor, chief investment officer at Purpose Investments. Wall Street also rallied at the start of what promises to be a hectic week, including the Federal Reserve's two-day monetary policy meeting. The Toronto market's industrials sector rose 1.5% and heavily-weighted financials advanced 1.4%. Technology was up 2.1%, with BlackBerry Ltd (BB.TO) adding 6.4% after a report that CEO John Chen has resigned. The materials sector (.GSPTTMT), which includes precious and base metals miners and fertilizer companies, lost 3.3%. It was pressured by a 28.5% tumble in the shares of First Quantum Minerals Ltd (FM.TO) after Panama's government said it will hold a referendum on whether to scrap a mining contract awarded to the company earlier this month. Energy was also down, falling 0.3%, as the price of oil settled 3.8% lower at $82.31 a barrel. "This slide in oil prices means that geopolitical angst won't be enough to send prices higher," Edward Moya, senior market analyst at OANDA, said in a note. "Too much demand destruction is happening and the oil market is losing its tightness despite all the risks to supply flows that remain on the table." https://www.reuters.com/markets/toronto-stocks-open-higher-after-eight-sessions-declines-2023-10-30/
2023-10-30 20:18
McDonald's rises after beating Q3 estimates Western Digital jumps on plan to separate into two cos Onsemi slips on dour Q4 rev forecast Fed meet, jobs data in focus Indexes up: Dow 1.58%, S&P 1.20%, Nasdaq 1.16% NEW YORK, Oct 30 (Reuters) - Wall Street rallied on Monday, kicking off what promises to be a hectic week that includes a heavy earnings docket, economic data and the Federal Reserve's two-day monetary policy meeting. All three major U.S. stock indexes closed up more than 1%, bouncing back from the previous week's sell-off. Interest rate sensitive megacap stocks, led by Microsoft Corp , Amazon.com (AMZN.O), and Apple Inc (AAPL.O) provided the most upside muscle. "Today is an earnings rebound," said Oliver Pursche, senior vice president at Wealthspire Advisors, in New York. "The market got oversold, and the reality is that earnings have been pretty good, the U.S. economy continues to chug along, and is likely to do so in the fourth quarter and into the first part of next year." Third-quarter earnings season, firing on all cylinders, has reached its halfway point, with 251 of the companies in the S&P 500 having reported. Of those, 78% have beaten Wall Street estimates, according to LSEG. Analysts now expect, on aggregate, annual third quarter S&P 500 earnings growth of 4.3%, a marked improvement over the 1.6% year-on-year growth seen at the beginning of October. Investors have shown “less pessimism," Pursche added. "First- and second-quarter calls had a more negative tone. There was anxiety over interest rates, Fed policy, the recession that never came." In the coming week, Caterpillar Inc (CAT.N), Apple Inc , Pfizer Inc (PFE.N) and Starbucks Corp (SBUX.O) are among the higher profile companies expected to post results. On Tuesday, the Federal Open Markets Committee (FOMC) is expected to convene for a two-day monetary policy meeting, which is expected to culminate in a decision to let the Fed funds target rate stand at 5.25%-5.50%. Investors will scrutinize the accompanying statement and Fed Chair Jerome Powell's subsequent Q&A session for clues regarding the central bank's path forward with rates. "The Fed wants to see the cumulative effects of their rate hikes on the economy but they’ve also said they’re prepared to over-shoot in an abundance of caution, as long as inflation is above 3%," Pursche said. The Bank of England and the Bank of Japan would also be announcing rate decisions this week, with the latter set to consider a further adjustment to its yield curve control (YCC) framework, according to a Nikkei report. Closely watched economic data is on tap this week, culminating in the U.S. Labor Department's October employment report due on Friday. Geopolitical strife arising from the Israel-Hamas conflict as well as a surge in Treasury yields have weighed on stocks in recent weeks, dragging the benchmark S&P 500 (.SPX) down about 10% from its intraday high in July. The Dow Jones Industrial Average (.DJI) rose 511.37 points, or 1.58%, to 32,928.96, the S&P 500 (.SPX) gained 49.45 points, or 1.20%, to 4,166.82 and the Nasdaq Composite (.IXIC) added 146.47 points, or 1.16%, to 12,789.48. All 11 major sectors of the S&P 500 ended the session green, with communication services (.SPLRCL) enjoying the biggest percentage gain, jumping 2.1%. McDonald's (MCD.N) reported better than expected quarterly results, driven by demand for its more affordable food as consumers contend with ongoing inflation pressures. Its shares gained 1.7%. Onsemi (ON.O) tumbled 21.8% after the chipmaker forecast weak fourth-quarter revenue on slowing demand for electric vehicles. Western Digital Corp (WDC.O) jumped 7.3% after the company disclosed plans to separate itself into two independent public companies. Realty Income (O.N) slid 5.7% following its announcement that it would by Spirit Realty Capital (SRC.N) in an all-stock deal valued at $9.3 billion. Spirit Realty Capital advanced 7.9%. Advancing issues outnumbered declining ones on the NYSE by a 2.15-to-1 ratio; on Nasdaq, a 1.62-to-1 ratio favored advancers. The S&P 500 posted no new 52-week highs and 44 new lows; the Nasdaq Composite recorded 14 new highs and 363 new lows. Volume on U.S. exchanges was 10.16 billion shares, compared with the 10.67 billion average for the full session over the last 20 trading days. https://www.reuters.com/markets/us/futures-jump-investors-await-fed-rate-verdict-middle-east-tensions-eyed-2023-10-30/
2023-10-30 20:18
ACAPULCO, Mexico, Oct 30 (Reuters) - The number of people dead and missing due to Hurricane Otis, a Category 5 storm which hammered the Mexican Pacific resort city of Acapulco last week, has risen to 100, the government of the southern state of Guerrero said on Monday. Otis battered Acapulco with winds of 165 miles per hour (266 km per hour) on Wednesday, flooding the city, tearing roofs from homes, hotels and other businesses, submerging vehicles, and severing communications as well as road and air connections. Looting broke out as the city's population of nearly 900,000 became increasingly desperate for food and water. The government of Guerrero, Acapulco's home state, said in a statement 46 people were dead and 54 others were missing. On Sunday, Mexico's federal civil protection authorities said there were 48 dead, comprising 43 in Acapulco and five in nearby Coyuca de Benitez. Among the dead are a U.S. citizen, a Briton and a Canadian, according to Guerrero's government. Many residents of Acapulco were still struggling to pick up the pieces of their shattered lives on Monday afternoon. Sixty-two-year-old Rumualda Hernandez from the Renacimiento neighborhood a few miles back from the shore, urged the government to send help after walking 10 blocks from her wrecked home to get water from a cistern to wash clothes caked in mud. "I was trembling with fear," Hernandez said, recalling how the floodwaters at her house surged above head height as the storm raged. "I thought I was going to die." Fishermen and workers on tourism yachts gathered at Acapulco's Playa Honda on Sunday afternoon to look for missing colleagues and friends, worried officials were not doing enough. Luis Alberto Medina, a fisherman, said he was searching for six people who worked in the harbor. "It was really horrible," Medina said. "We've already found the bodies of others." FEAR OF ASSAULT During a regular government press conference President Andres Manuel Lopez Obrador urged local authorities to ensure that basic goods were being delivered to Acapulco's population. The cost of damage from the hurricane could climb as high as $15 billion according to estimates, and Mexico has sent some 17,000 members of the armed forces to keep order and help distribute tons of food and supplies in Acapulco. ATM machines have also been hit in the city. Two service points will be set up in branches of an armed forces development bank in Acapulco to enable people to withdraw cash, the finance ministry said on Monday. Access to food and water remains challenging, and retail group ANTAD on Monday urged the government to step up efforts to prevent looting at stores run by its members. Members include Soriana (SORIANAB.MX) and Chedraui (CHDRAUIB.MX). "We condemn acts of robbery by the population," ANTAD said in a statement. "There is no justification for it." A line of some 150 people waiting for water provided by a local authority snaked down muddy streets in the La Frontera neighborhood on Sunday afternoon, as residents holding empty water containers bemoaned the hours-long wait. "Look how many of us there are," said one of them, Emilia Rojas, looking around her in despair. "We're so many. This water isn't going to be enough." On a nearby street, Perla Rubi said the long wait was uncomfortable, given how desperate people were. "We've been here since dawn, since five in the morning, risking getting robbed, because now they're assaulting people in the streets," she said. "Where's the government help?" The disaster struck Acapulco barely seven months before Mexico's next presidential election, and Lopez Obrador on Monday reiterated his claim that critics were attacking his response to Otis and inflating its impact for electoral reasons. His fiery denunciations sparked criticism that the president was downplaying the gravity of the disaster. https://www.reuters.com/business/environment/nearly-100-dead-missing-mexico-hurricane-state-governor-2023-10-30/
