2024-07-10 19:57

NEW YORK, July 10 (Reuters) - The fraud trial of Guo Wengui neared its end on Wednesday, as a prosecutor told jurors the exiled Chinese businessman duped his followers into providing millions of dollars he spent on luxuries, while a defense lawyer called Guo a misunderstood critic of China's communist government. In his closing argument at Guo's trial in Manhattan federal court, prosecutor Ryan Finkel said Guo raised more than $1 billion by guaranteeing followers on social media that they would not lose money if they joined him in a series of investment and cryptocurrency schemes from 2018 to 2023. Finkel played videos of Guo pitching investments, including one where Guo wore sunglasses and stood on the deck of a yacht. "It was him, this man, who spouted devious lies to trick his followers into giving him money," Finkel said, pointing at the defendant. "They forked over their money to participate in these quote unquote investment opportunities." Guo's lawyer Sidhardha Kamaraju began his closing argument by saying that flaunting wealth was part of his client's political critique of the ruling Chinese Communist Party (CCP), and that jurors shouldn't rush to judgment as prosecutors had. "The goal of making investors rich was also a way to spit in the eyes of the CCP," Kamaraju said. "He's trying to tell people that they can have a better life without the CCP. That they can have nice things." Guo has pleaded not guilty to 12 criminal counts, including racketeering, in a trial that has lasted seven weeks. Finkel acknowledged that Guo, a former real estate developer who left China in 2014 during an anti-corruption crackdown, has been targeted by Chinese authorities, but said that had nothing to do with his alleged criminal conduct. Earlier in the trial, jurors held keys to a red Lamborghini that Finkel said U.S. agents found in the garage of Guo's Connecticut estate. "Was Miles Guo targeted by the CCP? Yes," Finkel said, using one of Guo's aliases. "Does that excuse what he did? No." Guo's aliases have also included Miles Kwok and Ho Wan Kwok. Jailed since his March 2023 arrest, Guo wore a light gray suit and smiled occasionally during Finkel's argument. Finkel also showed jurors a video of former Donald Trump adviser Steve Bannon promoting one of Guo's ventures at a press conference in 2018. Guo paid Bannon $1 million as part of a consulting contract designed to lend legitimacy to his anti-CCP movement, Finkel said. Bannon is not accused of wrongdoing in Guo's case, but was arrested on Guo's $37 million yacht, the Lady May, in 2020 in a separate fraud case. Former U.S. President Donald Trump pardoned Bannon in 2021 shortly before leaving the White House. Bannon is currently serving a four-month jail sentence after he was convicted on separate charges for defying a congressional subpoena. Kamaraju's closing argument will resume on Thursday. Sign up here. https://www.reuters.com/legal/exiled-chinese-businessman-stole-millions-followers-us-prosecutor-says-2024-07-10/

2024-07-10 19:52

July 10 (Reuters) - Montana's top court on Wednesday appeared open to upholding a landmark ruling that found the state violated the rights of young people to a healthy environment by barring regulators from considering how new fossil fuel projects could affect climate change. Several justices on the seven-member Montana Supreme Court appeared skeptical of the Republican-led state's contention that the 16 young people in the case lacked legal standing to challenge a restriction on agencies' ability to consider greenhouse gas emissions when issuing permits. In urging the justices to overturn District Court Judge Kathy Seeley's 2023 ruling, Mark Stermitz, a lawyer for the state, said even if human factors contributed to climate change, "that doesn't mean that we feel that this global problem can be influenced in any way by a state district court judge in Montana." Montana Supreme Court Justice Laurie McKinnon, though, said the plaintiffs who filed the case in 2020 wanted to ensure the agencies could at least consider the impact of emissions, a potential "first step" to objecting to potential permits. "They can't even get there right now with that limitation," she said. Roger Sullivan, a lawyer for the plaintiffs, urged the justices to uphold Seeley's ruling blocking the restriction. He said it "closes the eyes of Montana's environmental agencies to the most serious environmental crisis Montana has ever experienced, the climate crisis." In her ruling, Seeley found the young people had a fundamental right to a clean and healthful environment under a 1972 amendment to Montana's constitution requiring the state to protect and improve the environment. The closely watched case was the first such challenge by young environmental activists to go to trial in the U.S. These suits object to state and federal policies that they say encourage or allow the extraction and burning of fossil fuels and violate their rights under U.S. or state constitutions. While some of those cases have faltered, the youth activists last month scored a major victory when Hawaii agreed as part of a first-in-the-nation settlement to take action to decarbonize its transportation system by 2045. Sign up here. https://www.reuters.com/legal/montana-ask-state-top-court-overturn-landmark-climate-ruling-2024-07-10/

2024-07-10 19:34

July 10 (Reuters) - U.S. natural gas futures eased about 1% on Wednesday on recent increases in output, a drop in the amount of gas flowing to liquefied natural gas (LNG) export plants after Freeport LNG in Texas shut for Hurricane Beryl and a tremendous surplus of gas in storage for this time of year. That price decline was limited by forecasts for more demand over the next two weeks than previously expected as a brutal heat wave will continue to blanket much of the country through at least late July, stoking demand for air conditioning and forcing power generators to burn more gas. Analysts said gas stockpiles were about 18% above normal levels. One factor depressing power demand this week was the roughly 1.6 million homes and businesses still without power in Texas on Wednesday in the wake of Hurricane Beryl. Front-month gas futures for August delivery on the New York Mercantile Exchange fell 1.5 cents, or 0.6%, to settle at $2.329 per million British thermal units (mmBtu), keeping the contract in technically oversold territory for a second day in a row. SUPPLY AND DEMAND Financial firm LSEG said gas output in the Lower 48 U.S. states rose to an average of 102.4 billion cubic feet per day (bcfd) so far in July, up from an average of 100.2 bcfd in June and a 17-month low of 99.5 bcfd in May. U.S. output hit a monthly record high of 105.5 bcfd in December 2023. Several producers cut output after prices fell to a 3-1/2-year low in February and March. A price recovery in April and May, however, prompted some producers, including EQT (EQT.N) New Tab, opens new tab and Chesapeake Energy (CHK.O) New Tab, opens new tab, to start pulling more gas out of the ground. On a daily basis, output hit a 17-week high of 103.0 bcfd on Sunday. EQT is the nation's biggest gas producer, and Chesapeake is on track to become the biggest after its planned merger with Southwestern Energy (SWN.N) New Tab, opens new tab. Meteorologists projected weather across the Lower 48 states would remain hotter than normal through at least July 25. With hotter weather expected next week, LSEG forecast average gas demand in the Lower 48, including exports, will rise from 106.1 bcfd this week to 107.0 bcfd next week. Those forecasts were higher than LSEG's outlook on Tuesday. Gas flows to the seven big U.S. LNG export plants fell to 12.2 bcfd so far in July after Freeport LNG in Texas shut ahead of Hurricane Beryl on Sunday, down from 12.8 bcfd in June and a monthly record high of 14.7 bcfd in December 2023. Sources told Reuters that Freeport LNG would likely restart by Thursday. The U.S. became the world's biggest LNG supplier in 2023, ahead of recent leaders Australia and Qatar, as much higher global prices fed demand for more exports due in part to supply disruptions and sanctions linked to Russia's invasion of Ukraine. With worries about Hurricane Beryl receding, gas prices fell to a seven-week low of around $10 per mmBtu at the Dutch Title Transfer Facility (TTF) benchmark in Europe and a three-week low of $12 at the Japan Korea Marker (JKM) benchmark in Asia . Sign up here. https://www.reuters.com/business/energy/us-natgas-prices-ease-rising-output-lower-lng-feedgas-2024-07-10/

2024-07-10 19:20

WASHINGTON, July 10 (Reuters) - Federal Reserve Chair Jerome Powell said on Wednesday the U.S. central bank will make interest rate decisions "when and as" they are needed, pushing back on a suggestion that a September rate cut could be seen as a political act ahead of the fall presidential election. "Our undertaking is to make decisions when and as they need to be made, based on the data, the incoming data, the evolving outlook and the balance of risks, and not in consideration of other factors, and that would include political factors," Powell said in a hearing before the House Financial Services Committee. "We have a long history of doing that, including during election years...Anything we do will be very well grounded. It's just not appropriate for us to get into the business of thinking about election cycles at all, one way or the other." Powell was responding to a question during a committee hearing from U.S. Representative Mike Lawler, Republican of New York, about whether a September rate cut, currently given a roughly 70% probability by investors, could be seen as trying to tilt the playing field ahead of the Nov. 5 elections. The state of the economy, and particularly the surge in housing, food and other costs in recent years, has been a potent issue for Republicans given public sentiment that remains sour given the high price of many items even as inflation itself has slowed. Rate cuts initially expected early this year were pushed back after inflation proved stickier than expected, with the Fed's monetary policy debate now lined up squarely with the fall campaign. "Since you made mention of the independence of the Fed, and I know you pride yourself on that independence, do you acknowledge or do members of the (Federal Open Market Committee) acknowledge that a rate cut in September could be viewed as political just 30 to 60 days before an election?" Lawler asked. It was the second day in a row that Powell's semiannual round of congressional hearings, ostensibly to discuss the economy and monetary policy, was infused with detailed discussions of Fed independence - a concept Powell often preaches, something members of both parties in both chambers of Congress say they support, yet which still became a central talking point as the Fed nears a rate cut decision. Republicans focused on the conditions that would warrant lower rates and encouraged Powell to not move until inflation was beaten; Democrats tried to draw him out on issues like proposals by a Republican-aligned group, called Project 2025, to overhaul and potentially weaken the Fed, and cited their concerns about rising unemployment. KEEPING TO THE PATH Powell, over his two days of commentary before the Senate and House committees that oversee the central bank, indicated the Fed was edging closer to a rate cut decision, while also insisting that he was not yet ready to declare that inflation had been beaten. Powell and other Fed officials have said they will not cut interest rates until they have gained even greater confidence that inflation is headed back to the central bank's 2% target after a breakout surge during the pandemic. "I do have some confidence of that," Powell said when asked directly if he felt the bar to cutting interest rates had been cleared, but "I am not ready to say that yet." Recent data, however, has been encouraging, Powell told lawmakers, and he emphasized that risks to the job market now stand on about equal footing with the risks of high inflation - with the Fed intent on meeting both its price stability and full employment goals. "There is a path to getting back to full price stability while keeping the unemployment rate low," Powell said. "We're on it. We're very focused on staying on that path." From ongoing growth to a 4.1% unemployment rate and falling inflation, Powell said the U.S. was enjoying "good numbers." After hitting a 40-year high in 2022 the Fed's preferred measure of inflation, the Personal Consumption Expenditures Price Index, was 2.6% as of May. Powell reiterated the central bank will need to cut rates before the figure returns fully to 2%, but after the underlying momentum seems likely to take it there. The Fed next meets on July 30-31. While officials are expected to maintain the benchmark interest rate at the comparatively high 5.25% to 5.5% range approved in July of 2023, further progress on inflation could lead to key changes in their policy statement that pave the way for a September cut. The next inflation report will be issued on Thursday. Powell has more public remarks set for Monday at the Economic Club of Washington. As they did in a Tuesday hearing before the Senate Banking Committee, lawmakers quizzed Powell on a variety of issues beyond monetary policy. Republicans in particular focused on bank regulatory proposals that have drawn opposition from the industry and GOP officials. His other comments on Wednesday largely tracked the Tuesday hearing in the Senate, which analysts feel showed both increased faith in a continued decline in inflation and a growing sensitivity to the risks of keeping monetary policy too tight for too long and slowing the economy more than necessary. As he did on Tuesday, Powell told House members that "more good data" would build the case for the U.S. central bank to cut interest rates. Sign up here. https://www.reuters.com/markets/us/feds-powell-says-balance-sheet-drawdown-still-has-ways-go-2024-07-10/

2024-07-10 19:14

HOUSTON, July 10 (Reuters) - About 1.5 million customers remained without power in Texas on Wednesday, two days after Hurricane Beryl raked the state, as progress to restore electricity was slow, hampering efforts to quickly restart critical oil infrastructure. The storm made landfall as a Category 1 hurricane on Monday near the coastal town of Matagorda, about 100 miles (160 km) from Houston, lashing Texas with heavy winds that knocked down power lines and damaged property. "When you don't have power, when it's pitch black at night, when it's as hot as 80 (degrees Fahrenheit/26.6 C) during the day, and you don't have access to food you normally have, it's a miserable situation," Texas Lieutenant Governor Dan Patrick told a press conference on Wednesday in Matagorda. About 1.3 million of the 1.5 million houses and businesses without power are customers of CenterPoint Energy (CNP.N) New Tab, opens new tab, the state's largest provider. CenterPoint said on Wednesday it had restored power New Tab, opens new tab to some 980,000 customers in the previous 24 hours, adding that it would reach 1 million re-established customers by the end of the day. In a letter to CenterPoint on Wednesday, congresswoman Sylvia Garcia said the firm's inability to restore power more quickly was creating a public health crisis. "Hospitals are now unable to send patients home where they lack power for medical equipment or an appropriately cool environment for their conditions." Among Texas' most affected zones by wind damage and lack of power were cities from Lake Jackson and Galveston on the coast to Houston, including energy hubs Freeport and Texas City, according to officials and CenterPoint's outages map. Chemical manufacturer Olin declared force majeure over shipping of some product and aromatics, saying that Beryl had caused damage to its Freeport facilities, impacting production and access to power, raw materials, and feedstocks. "The duration of this disruption is uncertain," it said in a statement. Also in that area, Freeport LNG, the second largest U.S. liquefied natural gas terminal, was preparing to resume processing by Thursday, two sources close to the matter said, as power was being restored. But LNG exports from the terminal are not expected to restart until the port, which is operating under restrictions, fully reopens for vessel traffic. A spokesperson for Freeport LNG told Reuters the company "intends to resume liquefaction when post-storm assessments are complete and it is safe to do so." PORTS, PLATFORMS REOPENING Refineries, offshore production sites and ports saw limited damage and were largely returning to normal operations. Two refineries in Texas City, Texas, one operated by Marathon Petroleum (MPC.N) New Tab, opens new tab and the other by Valero Energy Corp (VLO.N) New Tab, opens new tab, were in operation on Wednesday morning, according to a Reuters eyewitness. The Port of Freeport said on Wednesday the navigation channel had reopened to vessels with drafts up to 36 feet (10 meters). The port, which moved its first ship, added that survey would determine when the channel would be cleared for operations without restrictions. "All Port Freeport entrance gates have resumed normal operating hours. Utility crews are on-site making repairs to downed power lines," it said. The Port of Houston said its eight public terminals had resumed operations on Tuesday for vessel operations, and on Wednesday returned to normal start times for gate operations. Houston Pilots, which provides services to ships entering or departing the port, moved 14 ships inbound on Tuesday and was expecting 25 inbound and five outbound vessels on Wednesday. At the Port of Galveston, cruise ships began to sail while cargo operations were expected to resume on Wednesday. The port, which maintains draft restrictions for vessels, experienced relatively minor damage and some power outages, said Rodger Rees, Galveston Wharves port director. "Power remains out for areas of the port and the city. Port staff is working closely with the city to get power fully restored," the ports said on a social media update. U.S. oil producer Chevron (CVX.N) New Tab, opens new tab said on Wednesday that output from its operated Gulf of Mexico assets remained at normal levels. DAMAGES MOUNTING Reinsurance broker Gallagher Re estimated that U.S. economic losses from Beryl would be at least $1 billion as damage assessments continue. Weather forecasting firm AccuWeather issued a preliminary estimate of $28 billion to $32 billion in U.S. damage and economic loss. State officials promised cooling stations, hospital beds and a plan to remove debris. President Joe Biden on Tuesday approved a major disaster declaration for Beryl. With local stores running out of power generators for sale, many Texans resorted to their trucks to power appliances and small equipment at home. A Ford Motor (F.N) New Tab, opens new tab spokesman said the automaker saw a 1,300% increase from customers in the Houston region generating at least 1 kilowatt of power with their built-in F-150 pickup truck mobile generators. Sign up here. https://www.reuters.com/world/us/power-outages-hinder-hurricane-beryl-recovery-delay-port-infrastructure-restarts-2024-07-10/

2024-07-10 19:07

July 10 (Reuters) - The California Independent System Operator (ISO) on Wednesday told customers to be prepared to conserve energy as forecasts of extreme heat this week are set to raise power demand and could strain the grid. The grid is stable right now, California ISO said, but it said events that linger for days can overtax generators and cause outages. The grid operator expects higher electricity demand on Wednesday and Thursday, with Thursday set to be the hottest day this week. "If weather or grid conditions worsen, the ISO may issue a series of emergency notifications to access additional resources, and prepare market participants and the public for potential energy shortages," the ISO said. It said it may also issue a Flex Alert, urging consumers to voluntarily reduce electricity consumption between 4 p.m. and 9 p.m. on certain days. Sign up here. https://www.reuters.com/business/energy/grid-operator-tells-californians-prepare-power-conservation-2024-07-10/