2024-07-26 06:10

MOSCOW, July 26 (Reuters) - Russia's RIA state news agency on Friday broadcast a video in which a Russian citizen said he had blown up a military officer in his car in Moscow earlier this week at the behest of the SBU Ukrainian security service. Reuters could not independently verify the handcuffed man's assertions and there was no immediate comment from Ukraine. The Kommersant newspaper reported on Wednesday that a car bomb had injured an officer from Russia's military intelligence agency in northern Moscow. Other media said the injured man was a regular military officer. Russia's interior ministry said at the time that two people had been injured in the blast and that a criminal case had been opened. CCTV footage showed a Toyota Land Cruiser parked outside what looked like a residential complex exploding into a fireball. Turkish authorities said late on Wednesday they had arrested a Russian citizen suspected of the attack in Bodrum after he had flown in from Moscow. On Friday, Russia's FSB security service said in a statement that the man, whom it named as Yevgeny Serebyrakov, had been brought to Russia from Turkey and handed over to investigators. In a video released by RIA, which had been edited in places to remove certain references, Serebyrakov said he had been recruited by Ukrainian intelligence last year and asked to kill "an officer." He said in the video that he had gathered the components to make a homemade bomb at his Ukrainian handler's request and placed it beneath the unnamed officer's vehicle. He was promised Ukrainian citizenship and $10,000-20,000 dollars as a reward for his work, he said. Sign up here. https://www.reuters.com/world/europe/russian-man-confesses-video-moscow-car-bomb-attack-military-officer-ukraines-2024-07-26/

2024-07-26 06:08

LONDON, July 26 (Reuters) - Often the scariest thing in markets is a rout without a trigger. People are still unsure about the precise cause of the October 1987 crash, for example. And when the Nasdaq clocked a 10% one-day drop in April 2000, marking the first pop in the dot.com bubble, there were blank stares and collective shrugs about just why that particular day hit so hard. The latest shakeout of pricey megacaps has been modest by comparison. But there's been similar head-scratching as to why Wall St and global stocks registered their worst day since 2022 on Wednesday after hitting record highs earlier this month. There's no shortage of theories. And long-term bears have been warning of a correction in overly concentrated stock indexes for more than a year now amid concern about excessive hype - and capex spending - surrounding artificial intelligence. But there was no obvious smoking gun on Wednesday. Pre-election jitters, China's worrying slowdown, earnings seasons outliers such as Tesla (TSLA.O) , opens new tab, and Japanese yen volatility have all been posited as potential culprits. Whatever the 'real' answer is, it certainly wasn't worries about rising borrowing costs or higher-for-longer interest rates - the prime suspect in similar recoils this time last year and again in April. If anything we saw the beginnings of a rotation from equities to bonds, as Federal Reserve easing bets went up a gear, Treasury yields skidded and central banks in China and Canada cut interest rates. REARVIEW CLEAR So is the sudden discomfort with expensive stocks a fundamental growth concern that's been off radar all year? You'd think not just looking at the incoming corporate earnings season or Thursday's robust second-quarter U.S. gross domestic product release. There's a high bar for companies looking to impress markets - but annual profit growth for the S&P500 is tracking 11.6% so far - a point higher than estimated on July 1, according to LSEG data. And analysts are expecting this to accelerate to roughly 15% for calendar 2025 - also one point higher than they were predicting just two months ago. "We wouldn't say there has been any major incremental change in outlook from companies in early reporting to date," reckons Janus Henderson Investors portfolio manager Richard Clode. Slowing GDP then? Not a bit of it yet. Thursday's update showed the U.S. economy grew to an above-forecast clip of 2.8% in the three months to June, registering solid gains in consumer spending and business investment and with easing inflation gauges. ADJUST YOUR SET To be fair, these Q2 GDP and the corporate reports are backward looking and the horizon may be murkier due to the increasingly uncertain November U.S election - where events have already been tumultuous this month. Noel Dixon, global macro strategist at State Street Global Markets, thinks clients have been forced to "adjust their positions" given the sudden swing in election forecasts. What looked like a shoo-in for former-President Donald Trump now appears to be more of a toss-up, as Trump faces a "more formidable" opponent in Vice President Kamala Harris. If excitement and momentum builds around Harris' chances, Dixon reckons, there could be some speculation about her apparent preference for higher corporate taxes and regulation. There's now even talk of a potential clean sweep of the White House and Congress by Democrats, an outcome that seemed unthinkable at this time last week. But it still seems hasty, or at least very early, to bet the farm on such uncertain outcomes. That's not least because the Fed meets next week and is now nailed on to deliver its first rate cut by September - with one eye on a national employment report on Friday that seems to be gaining more of the central bank's attention. While markets are ascribing virtually zero chance that the Fed will make a move on Wednesday, comments from a former Fed official raised eyebrows in this week's volatile trading. In a Bloomberg op-ed published on Wednesday, former New York Fed boss Bill Dudley called for an immediate rate cut due to labor market cooling and the increasing likelihood of a recession. He cited the so-called Sahm Rule, pointing out that the speed at which a rising jobless rate presages recession is now close to being triggered. "I've changed my mind. The Fed should cut, preferably at next week's policy meeting," wrote Dudley. "Although it might already be too late to fend off a recession by cutting rates, dawdling now unnecessarily increases the risk." Could that be enough to trigger a market rethink on "what the Fed knows that we don't know"? That seems a stretch. But evoking the 'R' word now is notable, given the near consensus on a soft landing ahead. Perhaps this suggests the market is simply too priced for perfection and now becoming fearful of its own exuberance. And as is often the case, what markets fear more than anything is themselves. The opinions expressed here are those of the author, a columnist for Reuters. Sign up here. https://www.reuters.com/markets/markets-nervy-their-own-over-confidence-mike-dolan-2024-07-26/

2024-07-26 06:07

LITTLETON, Colorado, July 26 (Reuters) - Power producers in the United States are becoming increasingly reliant on natural gas for generation, even as the country builds out renewable energy capacity at a record pace. Renewable energy sources have been grabbing a steadily growing share of the power mix for years, which has allowed power firms to cut coal-fired power and reduce emissions. But due to the volatile nature of renewable energy flows, power firms have needed to increase the use of natural gas within power systems and remain heavily dependent on gas whenever renewable energy supplies drop off. That high gas dependency was highlighted again this month as wind generation slumped just as overall power use climbed due to high temperatures and strong demand for air conditioning. ON THE HOOK Power firms must ensure supply meets demand by adjusting fuel mixes as necessary, and this month they had to offset a steep drop in output from wind farms while also accommodating a climb in total power demand due to greater use of cooling systems across much of the country. From July 1 to July 23, power generation from U.S. wind farms dropped by 78% from 57,274 megawatt hours (MWh) to 12,608 MWh, data from LSEG shows. Wind generation levels often slump during the summer due to lower wind speeds at turbine level, but on July 23 the production levels were the lowest for that date in more than least three years. To offset such a notable dip in clean power supply, power firms boosted natural gas-fired generation by 27% over the same period, from 217,617 MWh on July 1 to 276,453 MWh on July 23, according to LSEG. This steep climb in gas-fired generation pushed natural gas's share of the national power generation mix to 46.3% so far in July, from an average of 40% for the opening half of 2024. But the higher gas-fired output also helped lift total generation levels by 3.4% on July 23 from July 1, ensuring the national power system was able to meet elevated demand needs. KEY POWER PILLAR The ability of natural gas to speedily plug supply shortfalls from other sources means the fuel will remain a critical pillar of the U.S. power system for years to come, despite continued rapid growth in renewable energy sources. Natural gas supplied just over 42% of U.S. electricity in 2023, according to energy think tank Ember. That was by far the largest single power source in the country and compared to 15.61% from combined wind and solar sources, 16% from coal plants, 18.25% from nuclear plants and around 6% from hydro dams. With power firms committed to reducing emissions, renewables look set to grow their share of the national generation mix while coal's share will decline further. But natural gas will remain the primary fuel source in a majority of key power systems across the U.S., and will likely continue to expand its share of the overall generation pie before being gradually reduced in generation systems over the coming decades. Sign up here. https://www.reuters.com/business/energy/natural-gas-shows-its-staying-power-us-wind-output-slumps-maguire-2024-07-26/

2024-07-26 06:07

ZURICH, July 26 (Reuters) - Holcim (HOLN.S) , opens new tab lowered its full-year sales guidance on Friday, after a downturn in Europe and North America hit second-quarter sales at the cement and building materials maker. In the first results under new Chief Executive Miljan Gutovic, sales during the second quarter fell 1.6% to 7.23 billion Swiss francs ($8.21 billion), missing forecasts for 7.31 billion francs. Downturns in North America, where building projects have been hit by unfavourable weather, and continued weak market conditions in Europe, were the main factors for the sales decline. Sales in North America fell by 3.3%, a negative for Holcim's plans to separate and list the business next year. Still, the North American spin-off was on track and expected to be completed in the first half of 2025, the Swiss company said. Europe, Holcim's biggest market and the core of the remaining business after the spin-off is completed, saw sales fall 0.1% as economic worries and higher interest rates weighed on building projects. Holcim revised down its full-year guidance after the results, saying it now expected annual sales growth in local currencies in the low single-digit percentage range. That was a downgrade from previous guidance for an increase of more than 6%. But while sales fell, operating profits rose, as Holcim cut costs and benefited from higher margins at companies it bought. During the period from April to June, recurring operating profit rose 8.2% to 1.68 billion Swiss francs ($1.91 billion), beating analyst forecasts for 1.63 billion. The company said it was concentrating on profit margins, raising its full-year operating profit margin guidance to above 18.5%, from 18% previously. ($1=0.8806 Swiss francs) Sign up here. https://www.reuters.com/markets/commodities/holcim-lowers-full-year-sales-guidance-after-q2-downturn-2024-07-26/

2024-07-26 05:58

KUALA LUMPUR, July 26 (Reuters) - Malaysia's state energy firm Petroliam Nasional Berhad (Petronas), Italy's Enilive SpA, and Japanese company Euglena Co (2931.T) , opens new tab have reached a final investment decision to develop a biorefinery in Malaysia, the companies said on Friday. A joint venture will be formed and construction is expected to start in the fourth quarter of this year, the firms said in a joint statement. The plant would be based in Petronas's integrated refinery and petrochemical complex in Pengerang, in Malaysia's Johor state. Upon completion, the biorefinery will have the capability to process about 650,000 tons per year of raw materials to produce sustainable aviation fuel, hydrogenated vegetable oil, and bio-naphtha, the firms said. It is targeted to be operational by the second half of 2028, they said. Sign up here. https://www.reuters.com/sustainability/climate-energy/petronas-enilive-euglena-develop-biorefinery-malaysias-pengerang-2024-07-26/

2024-07-26 05:50

JAKARTA, July 26 (Reuters) - Chinese companies are in talks with potential investors to reduce their stakes in Indonesian nickel smelters amid efforts to make their products eligible for U.S. electric vehicle tax credits, an Indonesian official said on Friday. Under the U.S. Inflation Reduction Act, to be eligible for an electric vehicle (EV) tax cut, materials for an EV or batteries must be supplied by firms with not more than 25% ownership by a "foreign entity of concern", which applies to companies from China, Russia, North Korea and Iran. Indonesia, the world's biggest producer of nickel, has been negotiating a critical mineral deal with Washington so that its nickel can be included in the supply chain recognised by the IRA. But the Southeast Asian nation's nickel industry is dominated by Chinese companies such as Tshingshan Holding Group, Zhejiang Huayou Cobalt and Lygend Resources and Technology. Chinese companies are approaching Indonesian and South Korean firms for potential partnerships in high-pressure acid leaching (HPAL) plants under construction and those in the planning stage, Septian Hario Seto, a Deputy Coordinating Minister for Maritime and Investment Affairs told Reuters on Friday. HPAL is a method for producing nickel material used in EV batteries from nickel ore. The intention is to reduce the Chinese companies' stakes and be eligible for the tax credits in the U.S. market, said Seto, who oversees the mining sector at the coordinating ministry, adding Indonesian companies are also seeking majority shares in such projects. "The Chinese company will act as the technology provider, the Indonesian investors as the ones to provide the nickel ore and the Korean investors would be the off-takers," he said. The Financial Times reported on Thursday Indonesia's government and industry are structuring new investment deals with Chinese companies as minority shareholders. Seto said the efforts are business-to-business, with no government intervention. During a visit to Jakarta last week, U.S. official Jose Fernandez said both countries' negotiations on the critical mineral agreement were progressing positively but did not share details on timeline. Sign up here. https://www.reuters.com/markets/commodities/chinese-firms-seek-cut-stakes-new-indonesian-nickel-smelters-2024-07-26/