2024-07-09 07:10

TOKYO, July 9 (Reuters) - Private equity firm KKR (KKR.N) New Tab, opens new tab plans to cut its stake in Kokusai Electric (6525.T) New Tab, opens new tab, two people familiar with the matter said, cashing in after a blistering run for shares in the Japanese chip equipment maker. KKR, which holds around 43% of Kokusai's shares, plans to sell about half of its stake to investors, one of the people said. Kokusai will buy back shares in the market, the person said. A 20% stake in Kokusai is worth roughly $1.6 billion as at Monday's closing price. KKR and Kokusai declined to comment. Shares in the manufacturer of deposition equipment, which was spun out of Hitachi Kokusai Electric in 2018, have roughly tripled since an initial public offering in October. Kokusai, which was originally part of Hitachi (6501.T) New Tab, opens new tab, has been a test case for private equity in Japan as conglomerates shed non-core assets and companies go private. With chips seen as underpinning technological innovation including the growth of artificial intelligence, Kokusai has been buoyed by demand for shares of chip equipment makers. Kokusai, which reported sales of 181 billion yen ($1.12 billion) in the year ended March, has medium-term targets of 330 billion yen or more in sales and adjusted operating margin of 30% or more. KKR sought to sell Kokusai to U.S. chip competitor Applied Materials (AMAT.O) New Tab, opens new tab in 2019. The deal was terminated after failing to achieve regulatory approval in China. Applied has a 15% stake in Kokusai. Kokusai also competes with Tokyo Electron (8035.T) New Tab, opens new tab, whose shares have risen by almost 50% in the year to date. It is exposed to the memory sector and analysts see scope for further expansion in logic. ($1 = 160.9400 yen) Sign up here. https://www.reuters.com/technology/kkr-cut-stake-japan-chip-tool-maker-kokusai-electric-sources-say-2024-07-09/

2024-07-09 07:02

July 9 (Reuters) - British power generator and network operator SSE (SSE.L) New Tab, opens new tab said on Tuesday it was going ahead, along with its joint venture partners, with the development of a 2 gigawatt offshore wind farm in the Netherlands. SSE said the wind farm would be commissioned by the end of this decade, subject to reaching a final investment decision by late 2025. The consortium will enter into the 40-year lease period for the site for an annual payment of around 1 million euros ($1.1 million). In June, the Dutch government awarded permits for offshore wind farm development totalling 4 gigawatts (GW) off the west coast of the Netherlands. SSE Renewables, via a consortium including Dutch pension fund ABP and its asset manager APG, were selected to proceed with their bid for a 2 GW site called IJmuiden Ver Wind Farm Alpha, the company said. Swedish energy company Vattenfall (VATN.UL) and clean energy fund manager Copenhagen Infrastructure Partners, through a joint venture called Zeevonk, were chosen to develop a 2 GW wind farm called IJmuiden Ver Beta. Sign up here. https://www.reuters.com/sustainability/climate-energy/uk-power-firm-sse-goes-ahead-with-2-gw-offshore-wind-farm-netherlands-2024-07-09/

2024-07-09 06:43

NEW YORK, July 9 (Reuters) - Oil prices eased more than 1% on Tuesday after traders learned that prolonged supply disruptions from Hurricane Beryl were unlikely after a U.S. oil-producing hub in Texas suffered less storm damage than feared. Brent crude futures settled at $84.66 a barrel, falling $1.09 a barrel, or 1.3%. U.S. crude settled at $81.41 at, losing 92 cents, or 1.1%. Although some offshore U.S. production sites were evacuated, ports closed and refining slowed, major refineries along the country's Gulf Coast appeared to sustain minimal impact after Beryl weakened into a tropical storm. "Early indications suggest that most energy infrastructure has come through unscathed," ING analysts Warren Patterson and Ewa Manthey wrote in a client note. Price action in crude oil and refined fuel markets reflected waning expectations of ongoing supply disruptions from the hurricane, they added. Texas accounts for more than 40% of crude supplied in the U.S., the world's top producer. "As we get more reports out of Texas and Houston that things are somewhat flooded but OK, angst leaves the market," said John Kilduff, a partner at Again Capital in New York. Major Texas oil shipping ports were set to reopen on Tuesday, and some facilities were ramping up output again. Several refiners such as Marathon Petroleum were preparing to restart their refining units. Oil investors also had a mixed reaction to comments by Federal Reserve Chair Jerome Powell, who told a Congressional hearing on Tuesday that the economy was no longer overheated and that the job market had eased. Despite indicating a possible nearing of interest rate cuts, oil prices sank farther after the remarks as a weakening economy could hinder crude demand. "The comments cut both ways," Kilduff said. Market participants are also watching the situation in the Middle East. On Monday, oil prices settled down 1% on hopes a possible ceasefire deal in Gaza could reduce worries about global crude supply disruption. Senior U.S. officials were in Egypt for talks on Monday, but gaps remained between the two sides, the White House said, and Hamas said a new Israeli push into Gaza threatened a potential agreement. "Crude futures were inching lower early Tuesday after a second consecutive session of losses suggested an overdue pullback from (a) nine-week high," said Vandana Hari, founder of oil market analysis provider Vanda Insights. Sign up here. https://www.reuters.com/markets/commodities/oil-prices-little-changed-concerns-about-damage-hurricane-ease-2024-07-09/

2024-07-09 06:33

LONDON, July 9 (Reuters) - Some clearing houses must improve their defences against customers defaulting, the European Union's securities watchdog said on Tuesday, following a stress test that highlighted how UK clearers still dominate parts of the market post-Brexit Clearers stand between buyers and sellers of securities, ensuring their trades are completed even if one side goes defaults. The European Securities and Markets Authority (ESMA) tested how 16 clearing houses, including those owned by exchanges such as Euronext (ENX.PA) New Tab, opens new tab, Deutsche Boerse (DB1Gn.DE) New Tab, opens new tab, ICE (ICE.N) New Tab, opens new tab, London Stock Exchange Group (LSEG.L) New Tab, opens new tab and Cboe (CBOE.Z) New Tab, opens new tab, generally coped with several theoretical disruptions, such as multiple users defaulting. "ESMA's fifth stress test confirmed the overall resilience of the European clearing landscape to severe credit and liquidity stress scenarios," Klaus Loeber, chair of ESMA's clearing house committee, said in a statement. Some clearers, however, need to strengthen how they deal with "concentration". Market participants with large positions in a particular asset class face "add-on" or extra requirements for margin, or cash posted at clearers to help cover any default and ensure speedy liquidation of positions. The add-ons sufficiently covered stress in interest rate derivatives, bonds, and stocks and equity derivatives, but fell short in commodity and freight derivatives, and emission allowances. The gaps were not as large as in past tests but "we would like to see continued improvement," Froukelien Wendt, director for clearers at ESMA, told reporters. For many asset classes a single clearer accounts for the bulk of add-ons across the market, such as for interest rate derivatives, or forex derivatives at London Stock Exchange Group's LCH clearing arms in London, ESMA said. ICE dominates commodity derivatives and emission allowance clearing add-ons, but for stocks, and equity and credit derivatives, there is no single dominant clearer, ESMA said. The EU has passed a law aimed at reducing the bloc's heavy reliance on clearers like LCH and ICE in London following Britain's departure from the EU in 2020. EU permission for LCH and ICE to continue serving bloc-based customers directly from London is due to expire in June next year, but the ESMA test results highlight the challenge of reducing their dominance over EU rivals in a short period of time. The watchdog said most of the clearers have started to integrate climate risk from assets like stocks and bonds into their in-house stress testing. "This exploratory analysis should be understood as a yardstick for further action with regard to climate risks' monitoring," ESMA said. Sign up here. https://www.reuters.com/markets/europe/clearing-houses-pass-eu-stress-test-that-highlights-lseg-ice-dominance-2024-07-09/

2024-07-09 06:27

July 9 (Reuters) - British housebuilder Vistry (VTYV.L) New Tab, opens new tab expects half-year profit to increase by about 7%, buoyed by resilient demand for its affordable homes from housing associations and the rental segment, it said on Tuesday. Though delays to interest rate cuts have tempered hopes of a speedy recovery for the British housing market, the sector will be encouraged by the new Labour government's pledge to overhaul planning rules as part of efforts to build 1.5 million new homes over the next five years. Vistry, with its focus on cheaper homes, is in a favourable position compared with some of its rivals. "We look forward to working closely with the new government and are supportive of their plans to introduce mandatory housing targets, reform the national planning policy framework, add new planning officers and prioritise brownfield and 'grey belt' land," the company said in a trading statement. Shares in the FTSE 100 (.FTSE) New Tab, opens new tab housebuilder were up 2% in early trading. Britain's finance minister Rachel Reeves on Monday pledged to tackle the chronic shortage of new homes, adding weight to previous comments by Vistry CEO Greg Fitzgerald. In March Fitzgerald said that the group expects to be able to build more homes under a Labour government. Vistry on Tuesday forecast adjusted pretax profit of about 186 million pounds ($238.2 million) for the six months to June 30 and reiterated its 2024 full-year target to build more than 18,000 homes with profit coming in above last year. ($1 = 0.7810 pounds) Sign up here. https://www.reuters.com/business/uk-homebuilder-vistry-sees-7-rise-half-year-profit-2024-07-09/

2024-07-09 06:25

CAPE TOWN, July 9 (Reuters) - Shell (SHEL.L) New Tab, opens new tab is seeking government permission to drill up to five ultra-deep offshore wells off the west coast of South Africa, a draft scoping report from independent environmental consultancy SLR showed on Tuesday. The oil major plans to drill exploration and appraisal wells in the area as energy companies shift their focus south of Namibia, where a string of discoveries in its prolific Orange Basin holds the potential of more finds. The Orange Basin extends southwards into South African waters and has also attracted the interest of rival TotalEnergies (TTEF.PA) New Tab, opens new tab, which in March took up acreage in Block 3B/4B, also off the west coast. Shell Offshore Upstream South Africa B.V. and its joint venture partners need environmental authorisation from the government before they can operate in the Northern Cape Ultra Deep Block (NCUD) in the Orange Basin. Water depths in the region range between 2,500 metres (8,200 ft) and 3,200 metres (10,500 ft). "All the buzz from Namibia is extending into South Africa," said Jamie McGreevy, lead analyst for Namibia and South Africa at Welligence Energy Analytics. "If you consider the scale of the opportunity as well as the size of giant discoveries in Namibia, it is really the big prize that they going after and that can be transformational for South Africa," he told Reuters. Mounting environmental pressures, including a raft of court actions to halt drilling, and cumbersome bureaucracy has stifled South Africa's ambitions to develop its nascent oil and gas potential as companies flock to neighbouring Namibia. The latest blow to South African hopes came earlier in July when TotalEnergies signalled its intention to withdraw from its position in Block 11B/12B on the southern coast over market challenges. The offshore block holds the significant Brulpadda and Luiperd gas condensate discoveries, seen as vital to South Africa's goal of becoming energy independent. Released for public comment until Aug. 8, SLR's draft environmental social impact assessment is the first step ahead of more detailed studies into the impact exploration and potential oil spills may have on the environment. Shell, which commissioned SLR to conduct the study, did not immediately respond to a request for comment. Sign up here. https://www.reuters.com/markets/commodities/shell-wants-permission-drill-off-south-africas-west-coast-2024-07-09/