2024-05-15 11:08

LISBON, May 15 (Reuters) - Portugal's new government is keen on ramping up sanctions on Russia over its invasion of Ukraine, Environment and Energy Minister Maria da Graca Carvalho said on Wednesday. The centre-right minority government took over last month, after a narrow win in a March 10 election that ended eight years of Socialist rule. The European Commission's next sanctions package is expected to propose restrictions on Russian liquefied natural gas (LNG) for the first time, including a ban on trans-shipments in the EU, according to a document seen by Reuters. This would not directly bar Russian LNG imports to the bloc, but would ban provision of re-loading services by EU facilities for trans-shipment of Russian LNG to third countries. "In general, the Portuguese government is aligned with the European Union's energy policies, namely with the measures that aim to ensure our strategic sovereignty ... just as it is in favour of toughening sanctions" to pressure Russia to end the invasion, the minister said in a statement sent to Reuters. She declined to comment specifically on the preliminary version of 14th sanctions package that needs to be formalised by the Commission and then approved by all member states in the Council. Sign up here. https://www.reuters.com/world/europe/portugals-new-government-favours-tougher-sanctions-against-russia-2024-05-15/

2024-05-15 11:00

BEIJING, May 15 (Reuters) - A sharp increase in China's hydropower generation from late April is likely to continue, leading to lower-than-expected demand for coal in power plants, a coal industry association said on Wednesday. Hydropower output in the last third of the month was up 42.9% year on year and is "very likely to maintain double-digit growth," China Coal Transportation and Distribution Association analyst Feng Huamin told a market seminar, adding that drought-stricken Yunnan province in the south has had more rain recently. "Following the beginning of the flood season, hydropower's squeeze on thermal power generation will gradually become more obvious," Feng said, adding that the continued ramp-up in renewable capacity will also eat into coal's share of power generation. Water levels and reserves at the Three Gorges Dam, the world's biggest hydropower plant, in central Hubei province, were up 47.8% year-on-year as of Tuesday, he added. China's flood season is usually in May and June but it began early this year, as parts of southern China experienced record-breaking rains in late April. Sign up here. https://www.reuters.com/markets/commodities/rising-hydropower-weigh-chinas-coal-demand-industry-group-says-2024-05-15/

2024-05-15 10:55

TANGERANG, Indonesia, May 15 (Reuters) - State energy firm Pertamina and U.S. major ExxonMobil plan to conduct appraisal drilling for a carbon capture and storage (CCS) hub in Indonesia, with the companies signing an initial storage deal with South Korea's KNOC on Wednesday. Indonesia, which estimates its depleted oil and gas reservoirs and saline aquifers could provide storage for hundreds of gigatonnes of CO2, this year allowed CCS operators to set aside 30% of their storage capacity for imported carbon. During the Indonesia Petroleum Association's annual conference on Wednesday, Pertamina and ExxonMobil signed a deal for preliminary work to design a commercial model for the Asri Basin Project CCS hub. "Pertamina Hulu Energi and ExxonMobil will carry out appraisal drilling in order to collect data which will later become a reference for the development of the hub," said Awang Lazuardi, chief executive of Pertamina Hulu Energi. A preliminary joint study by Pertamina and Exxon found that the Asri basin, in Pertamina's Offshore South East Sumatra block, had the capacity to store up to 3 gigatonnes of carbon dioxide and would require investments of $2 billion. The companies also signed a framework agreement with South Korea's KNOC allowing it to join the partnership and inject emissions into the facility, Nicke Widyawati, chief executive of Pertamina, told reporters on the sidelines of the conference. Sign up here. https://www.reuters.com/markets/deals/indonesias-pertamina-exxonmobil-knoc-sign-deal-ccs-hub-development-2024-05-15/

2024-05-15 10:01

A look at the day ahead in U.S. and global markets from Mike Dolan Markets seem to have got bored waiting for today's big U.S. inflation print and stocks zoomed to new records in advance, taking slivers of comfort from Tuesday's producer price readout and a relatively relaxed Federal Reserve chairman. A late rally on Wall St saw the tech-heavy Nasdaq (.IXIC) New Tab, opens new tab notch a record closing high on Tuesday, triggering a domino effect across the world today. With the notable exception of underperforming Chinese shares (.CSI) New Tab, opens new tab that have been hit by this week's sweeping U.S. trade tariffs, MSCI's all-country index (.MIWD00000PUS) New Tab, opens new tab charged to all-time highs on Wednesday - up more than 8% for the year to date and just shy of the S&P500's 10% gain (.SPX) New Tab, opens new tab. Europe moved in the slipstream, with the STOXX 600 pan-Europe index (.STOXX) New Tab, opens new tab clocking new records too. The S&P500 is hovering less that 0.3% from its historic peak of 5264.85 and futures are firmer ahead of the open. Aside from the meme stocks redux that's moving into its third day and generalised bullishness in fund manager surveys, there wasn't a great deal of new information to trigger the new highs. Interest rate markets and Treasuries certainly took a 'glass half full' view of Tuesday's PPI data and Fed boss Jerome Powell's Dutch visit. With futures markets back to pricing in almost two Fed rate cuts over the remainder of the year, 10-year Treasury yields recoiled to their lowest in more than a month. Powell on Tuesday didn't give a huge amount away and was non-committal about next policy steps - but he seemed to be happy that disinflation was about to resume. Ahead of today's key CPI release, that may have packed a punch. "I expect that inflation will move back down ... on a monthly basis to levels that were more like the lower readings that we were having last year," Powell said at a banking event in Amsterdam. Powell's colleagues - Cleveland Fed chief Loretta Mester and Kansas City Fed boss Jeffrey Schmid - both chimed with Powell's 'patient' line overnight and the expectation that inflation would subside again. Their takes put a gloss on an otherwise mixed PPI release that had above-forecast monthly gains but downward revisions to prior months, more contained annual measures and some encouraging details. Based on the PPI data, economists estimate the Fed's favored core PCE price index could rise by 0.2% or 0.3% in April after gaining 0.3% in March. That would result in core inflation increasing by about 2.8% year-on-year, matching March's advance. Those forecasts will hinge on today's April's CPI data, however. The monthly core CPI is expected to have eased to 0.3% from 0.4%, bringing annual core inflation back down to 3.6% from 3.8% in March. Perhaps lost in the inflation focus is today's release of April retail sales data - a pretty important element in road testing second-quarter U.S. growth estimates still running north of 4%. Elsewhere, the dollar (.DXY) New Tab, opens new tab slipped a touch in line with Treasury yields, hitting a one-month low versus the euro on Wednesday despite beefed up expectations for a rate cut from the European Central Bank next month. Even typically hawkish Dutch central bank chief Klaas Knot, speaking with Powell on Tuesday, seemed to think a June cut is now baked in. In company news, shares in Austria's Raiffeisen Bank (RBIV.VI) New Tab, opens new tab dropped 2% after news it was warned by the U.S. Treasury in writing that its access to the U.S. financial system could be curbed because of its dealings in sanctioned Russia. Key diary items that may provide direction to U.S. markets later on Wednesday: * US April consumer price index, retail sales, May NAHB housing market index, May New York manufacturing survey, March retail/business inventories, US Treasury March TIC data on overseas Treasury holdings * US corporate earnings: Cisco, Progressive * Federal Reserve Board Governor Michelle Bowman, Fed Vice Chair for Supervision Michael Barr, Kansas City Fed President Jeffrey Schmid and Minneapolis Fed chief Neel Kashkari all speak Sign up here. https://www.reuters.com/markets/us/global-markets-view-usa-2024-05-15/

2024-05-15 09:42

May 15 (Reuters) - Sterling hit its highest level in almost two weeks versus a weakening dollar and was broadly unchanged against the euro on Wednesday ahead of key U.S. inflation data. The pound fell on Tuesday after Bank of England (BoE) chief economist Huw Pill said the central bank might be able to consider cutting interest rates over the summer. Meanwhile, British wages grew more than expected. Still, other figures suggested the labour market is losing some of its inflationary heat, keeping the BoE on alert about when to cut interest rates. Market bets on future BoE rate cuts remained roughly unchanged, discounting an around 50% chance of a first move in June while fully pricing in a 25 basis point (bps) rate cut in August and more than 50 bps by year-end. The dollar dipped to a one-month low versus the euro on Wednesday amid lower Treasury yields as traders braced for a key U.S. inflation report later in the day that could dictate the path of Federal Reserve policy. Sterling rose 0.18% to $1.2610 after hitting $1.2616, its highest level since May 3. "From here, some modest pound weakness is likely given the UK has more room to cut rates than the European Central Bank (ECB) does, and rate moves are by far the biggest driver of exchange rates at the moment," said Kit Juckes, foreign exchange strategist at SGCIB Bank. "But in the longer run, rates that are about 150 bps higher than the euro zone’s won’t just cap the euro versus the pound, but help it break lower," he added. Sterling rose 0.01% against the single currency to 85.90 pence per euro. Sign up here. https://www.reuters.com/markets/currencies/sterling-hits-fresh-2-week-high-versus-dollar-ahead-us-data-2024-05-15/

2024-05-15 08:59

DOHA, May 15 (Reuters) - TotalEnergies will continue to be listed in France, Chief Executive Patrick Pouyanne said on Wednesday, as the company considers a listing in the United States. On April 26, Pouyanne had told analysts TotalEnergies was "seriously" looking at a possible primary listing in New York to ensure easier access for U.S. investors, adding he would report back to the board by September. On Wednesday, speaking at a panel at the Qatar Economic Forum in Doha, he said, "We never said we will leave France. "I repeat, we'll stay in France, we'll be listed in France. The question is - can we better offer some shares to our U.S. shareholders?" Pouyanne added, "We have more and more U.S. shareholders, and we have less European shareholders, including French shareholders - probably because of all the debate about ESG, etc. That's the reality. And then you see quite a different valuation between the U.S. markets and the European market." It was therefore the "fiduciary duty" of the TotalEnegies board to study a U.S. listing, he added. "And then, when we have studied, we will come back. And again, it's not a matter of politics, it's a matter of business. And I'm happy to see that all the French politicians are - want to keep TotalEnergies." In a May 2 radio interview, French Finance Minister Bruno Le Maire said it was important for the French oil major to stay listed in France. Poyanne said the LNG market was "tense" but would have more supply and, as a result, lower prices by 2027-2030. "Today you see even - because of the European market becoming an LNG market after the Russian Ukraine war - you see that we are in a tense market where in fact supply is even short demand. "So probably we'll have by 2027, 2030 quite a lot of supply," he said, adding that lower prices would draw new customers. "So I'm not afraid. I think there is a place - a clear place for the gas in the transition." Sign up here. https://www.reuters.com/business/energy/totalenergies-stay-france-ceo-says-it-studies-us-listing-2024-05-15/