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Duke Energy increases five-year capital expenditure plan to increase power supply
Duke Energy announced on Thursday that it had increased its five-year plan for capital expenditures to $83 billion. This represents a 13.7% increase, and is to meet the rising demand due to population growth in the U.S. Southeast, and expansion of data centres and advanced manufacturing. According to the U.S. Energy Information Administration, the U.S. energy demand will reach record levels in 2025 and 2020 due to new AI and cloud computing centers as well as the electrification and modernization of buildings and transport. The rapid population growth in the Southeast, where Duke is one of the largest electric utilities, is also driving electricity consumption. The company expects load growth to increase from 2027-2029 from 1.5%-2% to 3%-4.0% in the next two year. The majority of the additional $10 billion in Duke's capital budget will go towards expanding power generation. A large portion of this plan is intended to strengthen the utility's transmission and distribution lines. Brian Savoy, Duke's CFO, said: "We are seeing an increase in demand for electricity on our territory. We're building more everything." By the end of 2029, the company plans to have nearly five gigawatts of natural gas-powered power installed. Duke plans to issue approximately 40% of its capital plan increase with equity. Duke's electric segments and its gas segments reported a 5% increase in income for the fourth quarter ending December 31. This is compared to the same period last year. According to LSEG, despite interest costs, a high tax rate, and storm-related costs, the electricity provider reported a profit per share of $1.66 on an adjusted basis, which is in line with analyst estimates. Duke, North and South Carolina's largest utility, was hit by Hurricanes Debby and Milton, which destroyed miles of transmission and power lines, leaving thousands of Duke customers without electricity. Interest rates that are higher for longer can be a burden on utilities. They make it more expensive to invest in critical infrastructure, such as the electrical grid. The utility based in Charlotte, North Carolina, reported revenues of $7.36 billion. This was higher than the analysts' average estimate, which was $7.33 billion. This is largely because of higher residential sales, and higher rates. Duke's 2025 forecasted earnings ranged from $6.17 to $6.42 a share. The midpoint is just below the $6.33 estimate. Reporting by Seher dareen in Bengaluru, and Laila kearney in New York. Editing by Shailesh kuber and Aurora Ellis.
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India's Modi presents a tariff as a 'gift' at the Trump negotiations
The Indian Prime Minister Narendra Modi is bringing gifts to Donald Trump's meeting on Thursday. He hopes that concessions made on tariffs and new business deals, as well as the prospect of working with China, will win Trump's approval. Trump has used the threat of tariffs to force new deals in trade, investments, or help with law enforcement. India is not an exception. Although Trump and Modi had a good relationship in his first term as president, he called India "a very big abuser" of trade. His levies against steel and aluminum were particularly harsh on India. Modi, who will meet with President Obama at the White House on Thursday, has prepared a list of promises, including an increase in purchases of liquefied gas, combat vehicles and jet engines, according to Indian officials who declined to give their names. Indian officials also consider possible deals for U.S. agricultural exports to India, as well as investments in nuclear energy. They are also considering tariff reductions in at least 12 sectors, such electronic, medical, surgical, and chemical equipment. According to a person who is familiar with the team's thinking, these are the areas where Trump's team feels India can improve. One of the sources declined to name themselves as they were preparing a private meeting. U.S. officials and Indian officials are also moving ahead with bilateral trade talks, with an official from the Trump administration stating that they hope to have a contract in place by this year. A senior official in the Trump administration said, "We see a stronger partnership for defense. This includes procurement and moving things forward like defense exercises." The president said that we could literally power the Indian economic system with U.S. sales of energy. He also believes these two things will help reduce the trade deficit. After his November indictment for an alleged bribery plot by the U.S. Justice Department, the case of billionaire Gautam Adani may be brought up in the discussions. Adani is from Modi’s western state, Gujarat. His Adani Group manages several major infrastructure projects around the world. Many critics and opponents claim that Adani's meteoric rise was due in part to his close relationship with and treatment by administrations led by Modi's BJP, as well as its allies. Both have denied any wrongdoing. A second thorny matter will also be in the background. It is the alleged Indian plot to assassinate an American Sikh activist during the tenure of Trump's former, Joe Biden. The U.S. official briefing reporters said that Trump places the safety of all Americans as a priority. Richard Rossow, director of the India Program at the Center for Strategic and International Studies in Washington, said that the tariff issue would be the main focus this time. He said, "It will be a boxing contest." "I believe India is willing take some hits, but that's not the limit." The U.S. trade deficit with India is $45.6 billion. According to World Trade Organization statistics, the U.S. average trade-weighted tariff rate is about 2.2% compared to India's 12.0%. Trump's administration has promised reciprocal tariffs against every country that imposes duties on U.S. imported goods, a move which will increase fears of an expanding global trade war. What Trump wants is more help from India in preventing unauthorized immigration. India is a major source for immigrants to the United States. Many are in the tech sector on work visas, while others are in the U.S. without permission. Musk was seen heading to Blair House, the hotel where Modi stays, just before the meeting was scheduled. Musk is a close ally of Trump and the Starlink company's attempt to enter South Asia could be discussed. Modi and Tulsi Gabriel, Trump's newly appointed director of national Intelligence, held a meeting bilaterally on Wednesday. They discussed ways to enhance intelligence cooperation in areas such as counter-terrorism and cybersecurity. India could be a key part of Trump's strategy in thwarting China, which is seen by many as the number one rival for the United States. India is concerned about China's military buildup, and it competes with China for the same markets. Modi is also concerned that Trump may cut a deal that excludes India from the agreement with China, according to Mukesh Agi, president of U.S. India Strategic Partnership Forum. "Even though most of the discussion will be about the bilateral relationship, trade, immigration, and defense purchases, there will still be a China thread running through the meeting," said Lisa Curtis. A former White House official who focused on India during the first Trump Administration, she is now with the Center for a New American Security, a think tank. India still tries to avoid a direct confrontation with Beijing, and maintains an "ambiguous" foreign policy to avoid taking sides in major conflicts. This approach also means that India has maintained its ties to Moscow while it is fighting its war against Ukraine. India, for example, has continued to be a major energy consumer in Russia, whereas the West has been working to reduce its own consumption ever since the war began. Trump spoke with Vladimir Putin, the Russian president, and Volodymyr Zelenskiy, the Ukrainian president on Wednesday about launching negotiations to end war in Ukraine. The official from the Trump administration said, "I think that President Trump will welcome a discussion with respected world leaders including Prime Minister Modi about how we can move constructively towards peace in Europe." Reporting by Trevor Hunnicutt, David Brunnstrom, Manoj Kumra, Aditya Kahlra, Aditi Shah in New Delhi and Shivam Patel, in Bengaluru. Editing by Don Durfee Alistair Bell Hugh Lawson.
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After inflation data, stocks rise and US Treasury yields drop
The global stock index rose on Thursday, the first time in the last three sessions. Meanwhile, U.S. Treasury yields fell as a reading of inflation fueled the expectation that the Federal Reserve’s preferred measure of price might be lower than expected. The Labor Department announced that the Producer Price Index (PPI) was for Final demand rose After a downwardly revised 0.5% increase in December, the 0.4% rise last month surpassed the economists' estimate for a 0.3% gain. The consumer price index (CPI) for Wednesday showed the largest increase in almost 1-1/2 years. Fed Chair Jerome Powell has said that the PPI includes components of personal consumption expenditures. On Wednesday The PCE, the Fed's preferred inflation target measure, was softened and added to the hope that the reading could be lower than expected. It was a relief to find that the PCE components were performing better than expected. "I was pleased to see the anticipation of tariffs has not yet been reflected in the data," said Brian Jacobsen. Chief economist at Annex Wealth Management, Menomonee Falls in Wisconsin. The prices could go up when we receive the February data, which will be in March. But at least January was a month where businesses didn't try to "front-run" tariffs by raising their prices. Wall Street was higher following the inflation data. The Nasdaq rose more than 1%. All S&P sectors rose, led by consumer discretionary. Tesla's rise was 6% and MGM Resorts' surge of 14% after the casino. operator reported Better than expected quarterly earnings The Dow Jones Industrial Average grew 101.88 points or 0.23% to 44,472.79; the S&P 500 climbed 33.71 points or 0.56% to 6,085.68; and the Nasdaq Composite jumped 189.02 or 0.97% to 19,839.59. The MSCI index of global stocks rose 6.46 points or 0.74% to 879.24, and is on course for its largest daily percentage gain since the 4th of February. The STOXX 600 Index in Europe rose by 0.93%, its sixth consecutive session, and reached an intraday record. Nestle and Siemens, after their quarterly results and hopes of talks to end the conflict between Russia and Ukraine, were the main contributors. U.S. President Donald Trump says On Wednesday, Trump said that both Russian president Vladimir Putin and Ukrainian president Volodymyr Zelenskiy expressed their desire for peace during separate phone conversations with him. He also ordered top U.S. government officials to start talks about ending the war. The yield on the benchmark 10-year U.S. notes dropped 9.1 basis points, to 4.543%. This is on course for its largest daily decline in a whole month. In addition to the PPI data the U.S. initial claims for unemployment fell by 7.000, to 213,000 seasonally adjusted, which is slightly less than 215,000, and indicates that the job market is on stable ground. According to CME, the market has not priced in a probability of greater than 50% of a Fed rate cut of at least 25% until September. FedWatch Tool The dollar index (which measures the greenback versus a basket currencies) fell 0.48% at 107.39, and was on course for its largest one-day percentage decline since January 24. At $1.0431, the euro rose 0.47%. Boris, a Croatian politician Vujcic The European Central Bank may cut rates three times more this year, even if the U.S. counterpart moves slower. However, policy easing will be based on a rapid drop in inflation. The dollar fell 0.72% against the Japanese yen to 153.31. The pound rose 0.58%, to $1.2515. Official figures revealed that the British economy grew unexpectedly by 0.1% during the last quarter of the year. This was higher than the 0.1% contraction expected, but longer-term problems remain. prices fell The potential for an agreement between Russia and Ukraine was a factor in the decline, as were rising crude inventories. U.S. crude dropped 0.49%, to $71.02 per barrel. Brent was down to $74.76 a barrel.
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The EPA chief wants to recover $20 billion in climate funding
He said that the head of the U.S. Environmental Protection Agency wants to terminate contracts signed by the previous administration for the distribution of $20 billion in grant funds to fund clean energy projects and transportation in disadvantaged areas. In a message on X, EPA Administrator Lee Zeldin stated that he would ask the Inspector-General, Congress, and Justice Departments to work together with the agency in order to terminate the contracts with eight regional organizations who were named as financial agents, and rescind the grant money that was awarded under the Biden EPA’s Greenhouse Gas Reduction Fund. The Biden EPA announced in April that the organization would be responsible for awarding grants to communities and groups to fund projects such as home energy retrofitting or off-grid, renewable energy sources. Inflation Reduction Act, a bipartisan bill on infrastructure and the Inflation Reduction Act together authorized a number of actions to be taken over the next seven-year period to reduce or eliminate up to 40 millions metric tons per year of climate pollution. The EPA, under the Trump administration has attempted to freeze funding for climate change and environmental injustice, but has faced legal challenges. Democratic lawmakers and groups suing administration claim that dismantling funding will require Congressional support. Zeldin, in a video posted on X, criticised how the money had been spent under Biden. He said that the purpose of this was to use all of the funds in a hurry and with less oversight. A U.S. Judge said on Monday that Trump's Administration violated a court ruling, and as a result, the broad spending freeze he had placed on federal expenditures was lifted. (Reporting and editing by Barbara Lewis; Valerie Volcovici)
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TSX gains on tech, telecom boost; Trump's new tariffs are in sight
The main Canadian stock index rose Thursday with gains led by the telecom and tech sector, but the recent reciprocal tariff proposals of U.S. president Donald Trump limited overall growth. The S&P/TSX Composite index rose 0.2% to 25,618.60. Telus, a communications technology company, saw its fourth-quarter revenues beat expectations, resulting in a 3.7% increase. The technology sector also led with a 1.7% increase, driven by the 3.7% growth of e-commerce firm Shopify. The 10-year Canadian benchmark yield slipped, following the U.S. counterpart. This helped utilities and real estate to add 0.8% and 1.2%, respectively. Investors were on edge Thursday after Donald Trump announced his plan to announce reciprocal tariffs. Shiraz Ahmed is a senior portfolio manager at Raymond James and the founder of Sartorial Wealth. He spoke about Trump's plans for reciprocal tariffs. Financials fell 0.5%. Sun Life Financial, Canada's second largest life insurer, dropped 8.3% to the bottom TSX index after its fourth-quarter profit missed expectations. Kinross Gold fell 6.2% following the announcement of its fourth-quarter results. Materials group also declined 0.6%. Investors reacted positively to the latest data on producer prices, which rose slightly higher than expected. This suggests that inflation is picking up. (Reporting by Ragini Mathur in Bengaluru; Editing by Vijay Kishore)
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Bolivia to launch steel plant funded by China
According to Bolivian officials, a China-funded Bolivian steel plant that was first planned more than 50 years ago will begin production this month. The output is expected to be enough to meet half of the country's requirements. The $546-million Mutun Plant was funded in part by the Export-Import Bank of China. It will be operated for its first full year by Sinosteel Engineering and Technology of China. After an official opening on February 24, the plant near the Brazilian border in eastern Bolivia is expected to produce initially 200,000 metric tonnes of steel per year, primarily rebars and wire mesh worth $260 millions. Bolivia imports most of its steel from Brazil and Peru. At a Wednesday afternoon press conference, Mining Minister Alejandro Santos Laura said: "We have entered an industrialization era." The project has been delayed many times since its first proposal about 50 years ago. This was due to a number of disputes between India's Jindal Steel & Power Ltd. and the Indian government. The government of President Luis Arce has been struggling to revive the Andean nation's economy in the face of a drop in gas exports, which has depleted the reserves held by the central bank and pushed the local currency under pressure. The Mutun plant is expected to process 66,000 tonnes of raw materials per month, using iron ore mined from Cerro Mutun. Bolivian officials claim that this deposit has one of the largest iron ore deposits in the world, at 40 billion tons. Santos Laura stated that Bolivian officials would consider the possibility of building a second facility once the domestic demand is met. Santos Laura did not give a timeframe. Santos Laura stated, "When we reach 100%... We will build another plant that is much better than our current one." "We'll have no other choice than to export the excess abroad." He noted that the plant was expected to create 700 jobs initially and then 1,000 in time. (Reporting and Writing by Monica Machicao; Editing and Revision by Rod Nickel).
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Sources say that the Russian oil refinery Ryazan has partially resumed operations
Two industry sources confirmed on Thursday that the Russian Ryazan oil refining plant partially resumed oil extraction and loading motor fuels into railway tanks after 18 days of inactivity on February 11. After an attack on the refinery by Ukrainian drones, which took place on 24 January, Rosneft suspended its operations. The refinery's storage tanks were set on fire, and equipment such as a rail loading rack and hydrotreater units was damaged. One source said that the plant continued to ship fuel into rail tank cars after the January 24 attack because it still had the capability to load dark oils products. Industry sources say that the refinery's capacity will be reduced to half in the near term until the loading rack for clean products is fully restored. Rosneft has not responded to our request for comment. Ryazan refinery will process 13.1 million metric tonnes (262,000 barrels a day) or almost 5% the total Russian refining output in 2024. According to data from a reliable source, it produced 2.2 millions tons of gasoline and 3.4 million tonnes of diesel. It also produced 4.3 million metric tons of fuel oil, as well as 1 million liters of jet fuel. (Reporting and Editing by Susan Fenton).
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CBRE: Europe will see a record-breaking data center capacity expansion in 2025.
CBRE Group released a report on Wednesday that predicted a record number of data centres in Europe this year as companies increase their cloud computing and artificial intelligence activities. Data centres have seen a dramatic increase in demand over the last few years. This is due to companies embracing new technologies for their business. CBRE, a commercial real estate and investment firm, has said that data centres in Europe could account for 937 Megawatts of electricity demand by 2025. This would be a record for the area. The company stated that this would be a jump from 655MW in 2024 to 282MW or 43 %. The data centre construction boom is set to continue. The availability of power, appropriate land, government incentives and hyperscalers' ambitions are the key factors driving the rapid expansion of markets like Milan as well as leading markets like London, Frankfurt and London. CBRE estimates that 57% of the new capacity is expected to come from the top European data centres, including Frankfurt, London Amsterdam, Paris, and Dublin. CBRE reported that the demand for new capacity from customers has grown rapidly despite challenges for providers to source power and land. CBRE predicted that five of the ten secondary European markets it tracks will see double-digit growth in supply in 2025. By the end of this year, seven of these markets, including Milan, Madrid and Barcelona, will have at least 100MW in supply, up from only four markets by the end of 2022. Reporting by Lucy Raitano, Editing by Amanda Cooper, Aiden Lewis and Amanda Cooper
Sources say that GIP has hired banks to sell Vena Energy at a valuation of up to $10 billion.
Global Infrastructure Partners (GIP), a Singapore-based renewables energy company, has commissioned Morgan Stanley and Japan’s Mitsubishi UFJ Financial Group with managing the sale of a majority stake in Vena Energy. The deal could be worth up to $10 billion.
Vena is a wholly owned subsidiary of GIP and has operations in Japan, North Asia and Southeast Asia as well as India and Australia.
One of the sources said that financial advisers had begun to gauge interest from potential purchasers, but an official sales process was not yet launched. Sources said that the exact size of stake to be sold had not yet been determined.
It could be the largest renewable transaction in the world this year.
GIP, Morgan Stanley, and MUFG refused to comment. Vena didn't immediately reply to an email request for comment sent after Thursday working hours.
GIP agreed to purchase Vena Energy (formerly known as Equis Pte) in 2017 for $3.7 Billion, with the help of co-investments by China Investment Corp, a Chinese state fund, and Canada's Public Sector Pension Investment Board.
The International Energy Agency predicts that the energy demand in Asia will grow rapidly, particularly in Southeast Asia. This region is expected to account for over a quarter (25%) of the global growth in energy demand until 2035.
Vena reported $277.6 millions in revenue and $185.6 million of earnings before interest taxes, depreciation, and amortization in the first half 2024. This was a 5% decline year-on-year.
The country had 3.2 gigawatts of installed capacity, 2.4 trillion watt-hours of clean energy produced during that time period and another 1.1 gigawatts of capacity in construction. (Reporting from Andres Gonzalez, Kane Wu and Yantoultra ngui in London; additional reporting from Anton Bridge in Tokyo; editing by Susan Fenton).
(source: Reuters)