Latest News
-
Kuwait raised over $11 billion in bond sales as investors pile into Gulf debt
Kuwait, the world's largest oil producer, has raised $11.25bn from a three part bond issue, which attracted a large number of investors for its first U.S. Dollar issue since 2017. This marks a strong return on global debt markets following years of political gridlock in Kuwait. The Gulf State was the last sovereign in the region to tap into the bond market. Strong global appetite for bonds and low borrowing costs enable governments to diversify their funding sources and plug budget deficits, as well as invest in economic diversification. Kuwait sold $3.25bn in a portion of three years at 40 basis points above U.S. Treasuries. $3bn in a portion of five years at 40 bps and $5bn in a portion for ten years at 50 bps. Fixed-income news service IFR reported that the order books at launch were more than $23 billion, allowing pricing to be tightened from initial guidance. 2.5 TIMES OVERSUBSCRIBED Kuwait's Finance Ministry said in a press release that the transaction had been 2.5 times oversubscribed with an order book reaching a peak of $28 billion. In a statement, acting Finance Minister Sobeeh al-Mukhaizim stated that "this landmark issuance is testament to the confidence of the global market in Kuwait's fiscal power". This transaction strengthens Kuwait's global credibility and our relationship with international investors. Investors were reassured by the low level of debt in Kuwait, despite concerns over its governance, public finances and oil dependency. Justin Alexander, Gulf analyst at GlobalSource Partners and director at Khalij Economics, confirmed this. Kuwait's estimated sovereign wealth assets are more than $1 trillion. Kuwait does not reveal exact figures. In March, it passed a new law on public debt after the old one expired. The borrowing limit was raised to 30 billion dinars (98 billion dollars) from the previous 10 billion dinars and the option of longer terms for borrowing was also included. Kuwait's directly-elected parliament and appointed governments have been in conflict for years, preventing the passage of this law as well as other reforms. Last year, the emir disbanded parliament for up to 4 years. This allowed the government to implement reforms. Oil revenue was almost 90% of the government's revenue last year, despite plans to diversify away from hydrocarbons. Reporting by Rachna uppal and Ahmed Hagagy. Jamie Freed, Mark Potter and Mark Potter edited the report.
-
Duke Energy's Carolinas Energy Plan includes nuclear reactors and coal extension
Duke Energy, a U.S. energy company, is looking at adding large nuclear reactors and extending some coal plants' lives as part of its long-term plan to meet the rapidly increasing electricity demand in the Carolinas. U.S. electric utilities are increasing their power infrastructure plans in order to accommodate the rapid growth of electricity consumption. This is driven by AI data centres, the electrification and modernization of buildings, transportation, as well as the resurgence of domestic manufacturing. Nuclear energy has been rediscovered due to the recent increase in electricity consumption. It produces electrons around-the clock that are almost carbon-free. Kendal bowman, Duke Energy North Carolina's president, said that the energy demand over the next fifteen years is expected to increase at an eight-fold rate compared to the previous 15 years. Duke's 2025 Carolinas Resource Plan, which outlines the company's strategy up to 2040 and updates its 2023 plan that covered energy requirements through 2038, was submitted on Wednesday. Plan includes a proposal for the study of the additions of large light water reactors and small modules reactors. Potential sites include Belews Creek, North Carolina, and the W.S. Lee site in South Carolina. Duke targets a date of 2037 for the new nuclear generation to be in service. Duke would build new reactors in the next decade if it moves forward with its nuclear plan. The proposal comes against the backdrop of record-high power consumption and President Donald Trump's efforts to reduce incentives for solar and wind development, while promoting nuclear and fossil fuels. Duke will request extensions between two and four year for coal plants that have dual fuel capability. Duke cited recent changes in federal policy. The company still plans to retire its coal fleet, as new resources become available. Glen Snider is Duke's director of integrated resources planning. Duke Energy is the U.S.'s largest nuclear power operator and one of the nation's biggest coal plant operators. The company plans to double its capacity of battery storage from its earlier projections, to 5,600 Megawatts (MW), by 2034. It will also maintain its target of 4,000 MW solar power. The company claims that wind power is not economically viable for its customers until 2040. Utility plans to increase its natural gas fleet by adding two combustion engines to the five combined-cycle units that were proposed in 2023. The utility will increase the storage of liquefied gas to improve reliability and lower fuel costs. Duke's proposed upgrades will add 600 MW to the clean power capacity of existing nuclear and hydropower plants. (Reporting and editing by Laila K. Kearney)
-
Gold rallys to record highs on US government shutdown and Fed rate cuts
Gold prices reached a new record on Wednesday. A weaker dollar, and the demand for safe-haven assets amid a U.S. Government shutdown, boosted gold's price. Meanwhile, softer employment data reinforced expectations that the Federal Reserve will cut rates this month. As of 9:16 am, spot gold rose 0.2%, to $3,866.10 an ounce. After hitting a high of $3.895.09 in the earlier session, gold prices rose 0.2% to $3.866.10 per ounce at 09:16 a.m. ET (1055 GMT). U.S. Gold Futures for December Delivery gained 0.5% to $ 3,892.80. Dollar-priced Gold is now more affordable to overseas buyers as the dollar has weakened in comparison with a basket other major currencies. Edward Meir, Marex analyst, said: "The dollar is under pressure. Usually when the U.S. government shuts down the mood becomes quite negative and the dollar as well as the U.S. stock markets suffer." The dollar will also be hurt by the soft ADP job report. Another reason is that a slowing economy and lower interest rates are all bullish for gold. After a downwardly-revised 3,000 job loss in August, private payrolls in the United States decreased by 32,000 in September. The economists polled had predicted a rise in private employment of 50,000 after a previous report of 54,000 jobs. After partisan disagreements prevented Congress from reaching an agreement on funding, the U.S. federal government shut down major parts of its operations. This could put thousands of federal jobs in danger. The shutdown may delay the release key economic indicators including the highly anticipated non-farm payrolls report (NFP), scheduled for Friday. Gold, which is a non-yielding asset and considered a safe haven in times of geopolitical and economic uncertainty, thrives when interest rates are low. CME FedWatch Tool shows that investors are pricing a 99% probability of a rate reduction this month. SP Angel stated in a report that "we are now seeing an increased appetite from Western Investors, both institutionally and retail. As a case of FOMO kicks in... If this trend continues, we wouldn't be surprised if gold prices broke above $4,000/oz." Silver spot gained 1,4%, reaching $47.33 an ounce - a record high for more than 14 years. Palladium fell 1.4% to $1,239.97, while platinum dropped 0.5% to 1,566.30. Noel John in Bengaluru and John Biju report.
-
T-Mobile extends satellite-based networks to support WhatsApp and X in mobile-dead zones
T-Mobile announced on Wednesday that its satellite-to-cell networks now support widely used apps including WhatsApp, Google Maps, and X. This service offers connectivity in mobile dead zones as well as remote areas. The service was launched commercially in July, with limited access to MMS, SMS, picture messages, and short audio clips. T-Satellite is powered by over 650 Starlink satellites that transmit directly to cell phones. It's also available in about a dozen other apps, such as Pixel Weather and Apple Music. Jeff Giard is vice president of strategic partnerships and product innovations at Apple. He said: "We've worked with Apple and Google on frameworks for SAT (satellite connection feature) to allow any app to adopt the mode while connected to satellite and access the data channel." When a terrestrial signal is lost, T-Satellite users' phones automatically switch to the satellite network. Customers can launch satellite-ready apps to get critical services instead of data-intensive experiences. T-Mobile’s new “Experience Beyond” plan includes the network at no additional cost. The service is $10 per month for AT&T or Verizon customers. Giard stated that the framework for both the App Store (App Store) and the Play Store (Play Store) now allows apps to adopt SAT Mode through an application program interface. T-Mobile is also working to encourage app developers to activate the SAT mode. Giard stated, "I believe people are excited that their phone can connect to outerspace and that they don't have to purchase extra equipment to get a satellite telephone." (Reporting and editing by Shilpa Majumdar in Bengaluru, Harshita Varghese from Bengaluru)
-
Novak, Russia: Situation with domestic fuel supplies is under control
On Wednesday, Russian Deputy Premier Alexander Novak stated that while the overall situation of the supply of fuel is controlled on the domestic market, some regions still face fuel shortages. In several regions of Russia, there were shortages of popular gasoline types, such as in the far east of the country, Crimea (which Russia annexed in 2014 from Ukraine), and Nizhny Novgorod to east of Moscow. Ukraine has knocked down chunks of Russia’s refining capability via drone attacks . Russia is the third largest oil producer in the world after Saudi Arabia is a country that has a long history. Novak, a reporter, said: "We're experiencing some supply problems in some regions. The energy ministry and regions are working together to solve the problem manually." The government is imposing a ban on diesel exports for traders, and has extended the restrictions on gasoline exports until the end the year. Novak said that some refineries will be modernised this year and next, ensuring fuel supply. Novak stated that "if supply exceeds demand we will open export markets." (Reporting and editing by Guy Faulconbridge; Vladimir Soldatkin)
-
Poland: Commercial banks interested in nuclear plant financing
Polskie Elektrownie Jadrowe, the investor in the project and the state-owned Polskie Elektrownie Jadrowe, has said that commercial banks are interested. Piotr Piotr, the deputy CEO of PEJ, told a press conference that 30 banks from around the globe took part in a "sounding meeting" last week. They expressed an initial interest in the PEJ project. Piela stated that "it's not the time to count your chickens until they hatch, but it appears we will have no trouble closing funding for this project." EU APPROVAL OF STATE AID EXPECTED YEAR-END The project is estimated to cost around 192 billion Zlotys (53 billion dollars) and Warsaw expects that commercial banks will cover approximately 20% of its financing. PEJ is currently negotiating a contract for engineering, procurement, and construction with Westinghouse Electric. This company was chosen to build the project. Before that, the European Commission must approve state aid in the amount of 60 billion zlotys. Warsaw hopes to have the EU's approval by the end this year, and begin construction on the first unit of the plant in 2028. It will be completed in 2036.
-
Gold hits record price as US Government Shuts Down
Wall Street futures, the dollar and gold all fell on Wednesday as the U.S. Government shut down most of its operations. This could delay the release of important jobs data, which may muddy interest rate forecasts. The government shutdown, which has no way out of its impasse regarding a funding agreement, will halt the release a closely-watched September employment report. It could also lead to the furloughing of 750,000 federal employees at a cost of $400,000,000 per day. S&P 500 and Nasdaq Futures both fell by about 0.5% on Wednesday. Gold prices rose to $3,895 per ounce in a record-breaking session for the third consecutive time. The STOXX pan-continental index rose 0.7%, bucking the trend. The FTSE 100 in Britain and the SMI in Switzerland outperformed. Healthcare stocks jumped, boosted on expectations that they would avoid excessive U.S. tariffs on imports following President Donald Trump's agreement with Pfizer regarding prescription drug prices. In the STOXX 600, the healthcare sector is ranked third. Investors will buy as the political risks in the healthcare industry ease. I think that this could support European shares in the next few days." SLOW DOWN TO Delay Data Investors may give greater weight to the ADP National Employment Report, due later today. Forecasts predict a modest increase of 50,000 jobs in the private sector. George Lagarias is the chief economist of Forvis Mazars. He said: "The general notion is that these things will have a short term impact and not a longer-term effect, and markets are aware of this." The lack of data means we will assume that the current trend will continue. If there's no sign of a strong recovery in the economy, the Fed is likely to continue its current course. The Federal Reserve is now expected to cut rates by 95% in October. This is up from 90% a day ago. There's also a 75% chance that they will do so again in December. Anthony Saglimbene is the chief market strategist for Ameriprise. He said that, if the shutdown continues, inflation reports from September could be affected by mid-October. In a note, he stated that "an extended period when the U.S. Bureau of Labor Statistics was not fully operational could impact data collection efforts for the other reports and may affect the quality of data." The Nikkei 225 index of Japan fell 0.9% Wednesday, after a 11% increase in the previous quarter. South Korean shares increased by 0.9% to add to their 11.5% gains in the previous quarter. Data showed that exports grew at the fastest rate in 14 months during September. Taiwan's stocks gained 0.6%. The island's chief tariff negotiator stated on Wednesday that Taiwan would not accept a deal to have half of all semiconductor production take place in Washington. Hong Kong and all Chinese markets were closed on a public holiday. DOLLAR FALLS The dollar index fell for the fourth consecutive day on foreign exchange markets. It was down last by 0.1% at 97.71. The euro increased by 0.1%, to $1.1735. Sterling rose by 0.3% to $1.3483. The dollar fell 0.6% to 147.06yen after a Bank of Japan report showed that confidence among large Japanese manufacturers had improved for the second quarter. This increased the likelihood of an interest rate increase as early as this month. The yields on the Treasuries were unchanged in European morning trading. The benchmark 10-year Treasury yield in the U.S. fell 1 basis point to 4.137% after rising 1 basis point on Tuesday. After two days of declines, oil prices dropped further as investors weighed up potential OPEC+ plans to increase output next month. U.S. crude fell about 0.4% to $62.14 per barrel while Brent dropped 0.4% to $65.79.
-
Pertamina, Indonesia's fuel retailer, says retailers have yet to purchase gasoline due to specification concerns
Pertamina, the state-owned energy company in Indonesia, said that private fuel retailers had yet to purchase gasoline because they were concerned about fuel specifications, despite low stock levels. Indonesia instructed private retailers last month to import more fuel via Pertamina, after Shell and BP-AKR – the operator of BP’s fuel stations – ran out of fuel after more customers began turning to them following an investigation into the quality Pertamina’s own gasoline. Pertamina announced last week that Vivo Energy Indonesia agreed to purchase 40,000 barrels from a 100,000 barrel cargo of Pertamina's base fuel. However, the deal fell through due to concerns over the fuel’s ethanol content. Achmad Muchtasyar, Pertamina Patra Niaga's deputy CEO, said that private gas station owners were concerned about the ethanol content of the gasoline. "There is 3.5% ethanol in the gasoline that causes private gas stations to cancel their purchase." He said this at a parliamentary meeting, and added that Vivo initially showed interest in purchasing. Vivo officials informed the hearing that they cancelled the sale because Pertamina couldn't meet "technical issues", without giving further details. They said that the company would be open to purchasing from Pertamina again in the future. Vanda Laura, BP-AKR Chief Executive Vanda said that the company sought base fuel without ethanol. She added that there was no agreement reached because a certificate of source for the fuel imported from Pertamina wasn't available. Vanda said at the hearing that "one of our shareholders operates in 70 different countries." "We must adopt international law to reduce the risk of trade sanctions. We must ensure that the product does not come from an embargoed country. Shell, BP AKR and Vivo have said that gasoline stocks are only available in a handful of their stations and will not last more than a couple of days. BP-AKR stated that the supply issue could force them to review their expansion plans in the coming years. (Reporting and editing by Clarence Fernandez; Bernadette Cristina)
All battery storage tenders are awarded at prices well below cap
The CEO of grid operator Terna announced on Wednesday that Italy had awarded all 10 gigawatt hours of battery storage in its first ever auction at an average price of 13,000 euros per Megawatt Hour.
The auction is a major step towards the integration of renewable energy in the grid.
The Italian energy authority set a limit of 37,000 Euros per MWh.
Giuseppina di Foggia, Terna's Giuseppina, said at the Energy Summit in Milan that she expected a reduction in the wholesale cost of electricity as a result of these auctions.
Di Foggia stated that the capacity of the batteries awarded in the first tender represents an investment of approximately 1 billion Euros in the sector. He added that new tenders will follow, including one for hydroelectric infrastructure storage.
Italy needs to increase storage capacity as its production of solar and wind energy is growing. By maximizing the use of these intermittent sources, electricity prices can be reduced to zero during times of high supply and low demand.
The Terna-managed mechanism offers developers 15-year fixed revenue plus a portion of the ancillary service income in an effort to reduce the risks associated with the investment and speed up the deployment of battery systems.
The award capacity will be online by 2028, and it is expected to help maintain grid stability in Italy as solar and wind power generation increases.
(source: Reuters)