Latest News
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Source: Prediction market Kalshi will file for US crude oil "perps"
Source familiar with the matter says that Kalshi will soon file a permanent?West Texas Intermediate crude contract with U.S. regulatory authorities, which would expand the offerings of the prediction market startup beyond cryptocurrencies and metals. The filing with the U.S. The filing with the?U.S. If approved, WTI crude oil would be the first perpetual oil futures product to trade on a U.S. regulated platform. This follows a strong demand for similar instruments on offshore decentralized markets such as Hyperliquid. Perpetual futures (or "perps") are derivatives with no expiration date. This allows traders to keep positions open indefinitely, without having to roll them over. These products offer investors high levels of leverage that allow them to magnify both gains and losses from market movements. This'move' is part of Kalshi’s strategy to compete with traditional exchange operators, by expanding past event contracts and into asset classes via perpetual futures. Kalshi has filed with regulators for perpetual contracts linked to equity indexes and metals. According to reports in the media, Kalshi has also filed for perpetual foreign exchange and interest rate contracts. The CFTC said that contracts linked to new asset classes will be reviewed case-by-case. The CFTC approved the first perpetual futures contracts for the United States in early this year, for the cryptocurrency exchange 'Coinbase' and prediction -market startup Kalshi. LEGAL LIMITS Source: Kalshi designed its new contract in order to avoid regulatory concerns raised by a CFTC examination of?24/7 energy futures contracts and perpetual energy contracts. The'regulator' set a deadline of August 26 for public comments to be submitted on a proposal which would allow round-the-clock trading in standard?futures and perpetual?contracts that are linked to physical delivered or storable energy commodities. Earlier this summer, the CFTC halted listing of a crude oil futures contract that CME Group would have been able to trade round-the clock.
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Abel, Berkshire CEO, says AI will help drive growth
Greg Abel, CEO of Berkshire Hathaway, said on Wednesday that he saw significant opportunities for Berkshire Hathaway from the building out of AI data centres after Berkshire Hathaway made Alphabet its third largest common stock holding. Abel said that the housing market would be "bumpy" in the short term due to the high inflation rates and mortgage rates. Abel, speaking on CNBC, called Alphabet "a significant player" in AI. This was the reason he and Berkshire Chairman Warren Buffett authorized an additional $10 billion three months ago, to help Google and YouTube build out AI infrastructure. Abel stated that "we are all feeling and seeing the impact" AI. Berkshire had approximately 106,000,000 Alphabet shares valued at $37,8 billion by the end of June. Apple and American Express were its largest investments. Abel stated that Berkshire Energy's business could also be a beneficiary of AI growth due to the increasing amount of electricity required to run data centres. He estimated that in Iowa, where Berkshire Hathaway Energy's headquarters is located, about 8% came from data centres last year. Abel stated, "I have always believed that energy would be the main constraint." "We still see this as an important opportunity for Berkshire Hathaway Energy and Berkshire." Buffett initiated Berkshire’s investment in Alphabet, but Abel claimed credit for the new?investment made at a discount of 6.5% to Alphabet’s stock price. Abel manages Berkshire’s cash stake and allocates the capital with Buffett’s help. As of June 30, this totaled a whopping $364.7 billion. ABEL SAYS THAT CONSUMERS?ARE STRETCHED Berkshire announced its Alphabet investment one day after paying $6.8 billion to purchase Taylor Morrison. Also, it invests in homebuilders Lennar D.R. Horton. Abel believes Taylor Morrison will be a very strong asset in five to ten years, as more people become homeowners. Abel stated that "we didn't see any signs of immediate recovery" for housing. It was going to be bumpy for a long time. According to the Department of Commerce, the Census Bureau, U.S. single family housing starts fell to their lowest level since November 2022 in July, due to higher mortgage rates, and the economic uncertainty caused by the Iran War. Abel stated that "there's still a consumer who is clearly feeling the pain and struggling and has to stretch that dollar a lot farther." JAPANESE INVESTMENTS ARE BUFFETT LIKE ABEL Abel spoke from Tokyo where he said Berkshire had more than 10% stakes of Japanese trading houses Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo. In March, Berkshire took a 2.49 % stake in Tokio Marine, as part of "a strategic partnership". Abel stated that Berkshire intends to hold its trading houses investments for "many years" and would be interested in pursuing a transaction with Tokio. He refused to comment on an article that suggested Suncorp Insurance Australia Group and Insurance Australia Group could be potential targets for Tokio. Abel travelled to Tokyo on Monday after celebrating the 96th Birthday of legendary investor Buffett with his family. Buffett visited Japan himself in 2023. Abel stated that Warren loves Japanese investments. "It was not easy for Warren to send me off to Tokyo." Berkshire's dozens of companies include the BNSF railway, Geico auto insurance, manufacturing firms and retail brands like Brooks, Dairy Queen and Fruit of the Loom.
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Mexico launches anti-dumping investigation against Japan's steel sheet
Mexico has launched an investigation into the imports of steel sheets from Japan. This was revealed in a resolution that appeared in the official gazette on Wednesday morning. Grupo Acerero, which claimed that unfair international trade practices were taking place, specifically, price discrimination on imported steel sheets made in Japan, requested the investigation. The investigation was accepted by Mexico's Ministry of Economy. In the resolution published in official gazette, it was stated that the anti-dumping investigation would be conducted on all steel sheet imports from Japan, regardless of the country they are exported to. Grupo Acerero alleged that Japanese steel sheets "entered Mexico at a price discrimination, causing?material harm to the domestic industry." After the investigation, Mexico’s Economy Ministry may decide to impose definitive antidumping duties on the products involved. The resolution established the investigation period until 2025 and the damage analysis period from January 2023 to December 2025. The investigation is expected to take a total of '23 business days' for producers or those involved in the investigation to establish their legal interest, submit arguments and evidence, and provide responses.
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PG&E reviews its spending and defers $2 Billion after wildfire bill setback
PG&E, the utility, announced?on Tuesday that it would defer about $2 billion of 2027 expenditures, leaving a 'capital plan?of about $11.4 bn. It is launching a strategic review due to wildfire liability concerns. The review is coming at a time when PG&E is facing renewed uncertainty about liability costs. A Senate bill 'amendment' did little to reduce utilities exposure to expenses'related to the fires' or address the long term solvency 'of California's fund. The company planned to spend $13.4 billion by 2027. Patti Poppe, CEO of Patti Poppe, said that California's wildfire liability framework continues to create financing risks, which drive up costs, impact customer affordability and limit investments in the energy systems. "Something must change in order to better serve our customers." PG&E stated that the review is aimed at helping?reduce costs for customers associated with higher financing 'expenses. It added?that it would reduce its debt financing requirements by $2 billion. The review will evaluate the entire range of 'options' that are reasonably available in terms of regulatory, financial and operational options, as well as the full range of 'options relating to how the company is organized.
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Vertiv buys Utility Innovation Group up to $2.6 Billion in data center push
Vertiv Holdings announced on Wednesday that it would purchase Utility Innovation Group, a microgrid and advanced 'power control' company for $1.45 billion. An additional $1.15 billion could be paid if certain targets are met. Vertiv expects that the deal will add capabilities to its customers' data center projects, by securing energy through grid-connected sources and onsite power sources. Gio Albertazzi is the CEO of a power and cooling equipment manufacturer. Data center operators are increasingly interested in onsite power and microgrids as they seek to find alternatives to the?constrained utility?grids in light of an AI-driven surge in power demand. Data centers can combine utility power with onsite generation, energy storage and energy storage using microgrids. This improves reliability and helps bring new facilities on line more quickly. Vertiv will be able to add a range of capabilities, including microgrid control, onsite power generator orchestration, specialized switches, and power architecture behind the meter, with the acquisition of North Carolina's Utility Innovation Group. Energy management and onsite power solutions have also benefited from the high AI workloads that are a major factor in data centers. Vertiv purchased liquid-cooling company CoolTera in?2023, while Schneider Electric acquired liquid-cooling specialist Motivair?in 2024. Vertiv's acquisition of Utility Innovation Group should close by the fourth quarter of 2026. Vertiv increased its forecast for the annual adjusted profit per share to $6.65-$6.75, from an earlier estimate of $6.30-$6.40.
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Braves aim for a split against Nationals as key series approach
Atlanta will split its two-game set against the Washington Nationals this Wednesday. The Braves know that the road trip is heating up in the coming weekend. Atlanta, which leads the National League East (82-57) and lost its second consecutive game on Tuesday (9-5) is heading for a four game showdown with second-place Philadelphia Phillies 79-60 this weekend. The Braves' Grant?Holmes will take the field on Wednesday to face the Nationals'?right-hander _Brad Lord (5-2, 3.75). Holmes is 5-1 and has a 3.33 ERA in his last 10 appearances. Holmes won his last outing against the Colorado Rockies despite allowing three runs and eight hits in five innings. Holmes has a career ERA of 3.18 in three starts and four appearances. Holmes lost despite striking out 10 batters in a season high five innings and allowing only two runs. Lord has been a relief pitcher this season and he's also played the role of opener on a few occasions. His last Saturday outing against the Miami Marlins saw him give up one run on two hits in 2 1/3 innings and be charged with a failed save. Lord has a 2.86 ERA and is 0-2 in seven games against the Braves (two starts). He pitched three innings of scoreless relief on May 23, helping to preserve the Nationals win. Washington's 9-5 victory on Tuesday night featured two new players who made their major league debuts. Jared Simpson, the relief pitcher, threw three scoreless inning to win. Designated hitter Yohandy morales hit a homer, a double and single. Blake Butera, Nationals manager, said that Morales looked ready to go and was not nervous at all. Simpson was the same. He was in a tough spot with men on first and third in a tight match and got nine outs from eight batters. Washington (67-74) won five of their last six games. Morales first big-league hit was a home run, after he struckout in his first at bat against AJ Smith Shawver. The 24-year-old explained, "I had no choice but to go up there." "I missed that first pitch, which was a fastball. Then he left up a splitter, so I got my hands up and as soon as I hit it, it was like 'oh, it's got chance' and began rounding the base." CJ Abrams scored two goals after missing the game on Monday due to back pain. James Wood went 1-for-3 in his second rehab game for the Double-A Harrisburg Senators. He scored a run, walked and struck out. Michael Harris II scored a home run for the Braves for the second consecutive game. He's hit safely for six straight games. Blake Burkhalter is Atlanta's No. 15 prospect. The 15th-ranked prospect in Atlanta, Blake Burkhalter, made his debut on Monday. The 25-year old right-hander gave up?one run in an inning on a single hit, a walk and a strikeout. Walt Weiss, manager of the Braves, said: "Good work by Burky." "Good arm. "Good arm." He only gave up one run but I saw some good stuff. Good fastballs, good breaking balls, hard breaking balls and cutters. "I thought he did a good job of handling himself." Field Level Media
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Dechert, UK fraud watchdog and ENRC resolve criminal probe
The Serious Fraud Office of Britain has settled with a Kazakh mining company ENRC that accused the agency and law firm Dechert for causing them huge losses during an important criminal investigation. The settlement announced on Wednesday by ENRC and Dechert appears to bring to an end the more than 10 year legal saga that began when the SFO began investigating allegations of bribery committed by ENRC between 2009-2012 to secure mining contracts for the Democratic Republic of Congo, which the company denies. The London High Court previously ruled that the SFO wouldn't have opened an investigation into the alleged bribery if it hadn't first persuaded Neil Gerrard's former lawyer at Dechert for ENRC to act against the miner’s interests. In 2023, the SFO dropped their investigation and did not file criminal charges. They said at that time that "insufficient admissible proof to prosecute" was available. ENRC, an ex-FTSE 100 company, sought around $76m?in "unnecessary expenses" that it claimed it incurred during the SFO probe and approximately $90m in increased borrowing costs, after the investigation became public. Plus interest. The SFO, Dechert and the ENRC were all fighting for damages. A trial was held earlier this year in order to determine what, if any, ENRC would receive. EnRC and Dechert announced on Wednesday, before the High Court's ruling, that the case had been settled, but without disclosing any terms. In separate, but identical, statements, an 'ENRC spokesperson, Dechert LLP, and David Neil Gerrard said that they had concluded their 'proceedings on terms of confidentiality. SFO and Gerrard’s lawyer didn't immediately respond to comments. ENRC had sued separately the SFO, the former case controller of the ENRC investigation and a former employee over alleged leaks to journalists. This case was settled by 2024.
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Abel, Berkshire CEO, sees energy as a business opportunity
Greg Abel, Berkshire Hathaway's Chief Executive said on Wednesday that he saw significant opportunities for its energy business from the construction of a?AI data center. This comes after Berkshire had made Alphabet the third largest common stock holding. Abel, speaking on CNBC, said that he considered Google to be a "significant" player in AI. This was the reason he and Berkshire Chairman Warren Buffett authorized an additional $10 billion investment three months ago. Abel stated that "we are all feeling and seeing the impact" of AI. Buffett initiated Berkshire's investment into Alphabet last year. Abel, however, took credit for the investment. Abel stated that Berkshire Hathaway's Energy business could also "benefit" from AI growth due to the amount of energy needed to run data centres. He estimated that in Iowa where 'Berkshire Hathaway Energy' is located, around 8% of the load was from data centers last year. Abel stated, "I have always been of the opinion that energy will be the constraint." "We still see it as a significant opportunity" for Berkshire Hathaway Energy and Berkshire.
Morgan Stanley: Venezuelan bond outlook is boosted by US Oil Deal Signal
Morgan Stanley's report on Tuesday stated that the U.S.-Venezuela Oil Agreement strengthens the outlook of?Venezuela?s sovereign debt restructuring, and encourages higher oil production, though key details are still unclear.
Last week, the U.S. announced an agreement with?Venezuela under which North American Blue Energy Partners would be granted a concession for 100 years covering 17 oilfields estimated to have 65 billion barrels in reserves.
The U.S. government will receive a 35% stake in the parent company, as well as the right to buy 20% of the future output at cost, and the first refusal on the remaining 80%.
Morgan Stanley has maintained that it is assuming a production of?about 1,5 million barrels per a day by 2027. This level, according to Morgan Stanley, would allow for a successful restructuring of the massive amount of defaulted government debt.
Since the U.S. deal was announced last week, Venezuelan sovereign bonds and those of PDVSA (the state oil company) have gained about 3.5%. This reflects a more positive economic outlook in advance of any restructuring talks.
Morgan Stanley analysts say the importance of the oil deal lies less in its specifics and more in the commitment it signals to Venezuela and other countries in the Western Hemisphere.
The report stated that "the announcements are positive for sovereign bonds, even though more details are needed. Especially on the fiscal impact."
If the plan is implemented, the $100 billion investment in Venezuela's oil infrastructure would be a significant boost to production. However, the report cautioned there were many details about the plan that are still missing.
The deal also represents a dramatic expansion of the U.S.'s role in the?Venezuela oil industry. The country has the largest oil reserves in the world, but only produces about 1.25million barrels per day. This is far below their potential, after years of mismanagement, underinvestment and sanctions.
(source: Reuters)