Latest News
-
US utilities invest heavily in data centers to meet the growing demand but affordability issues loom
Companies like American Electric Power, Exelon and others have announced their expanded investment plans and answered questions about rising power bills. Utilities add power?lines to the grid and other components as data centers -- needed for Big Tech's expansion in artificial intelligence technologies that drive this growth -- help lift U.S. consumption of electricity out of two decades flat demand. This demand has prompted electricity prices to rise across the country, and fierce competition among power companies in order to capture this long-awaited growth. Some regulated utilities in the Mid-Atlantic PJM Interconnection are trying to change state law to be able add more power to the market. AEP announced on Thursday that it will expand its five-year plan to include an additional $5 billion – $8 billion of transmission and generation projects. Bill Fehrman, CEO of AEP, said on a Thursday call with investors that "we are in the middle of a generational growth phenomenon" referring to the doubled demand from potential data center customers. "However," he continued, "meeting this demand must also be done responsibly." Exelon increased its capital plan for the next four years to $41.3 billion, up from $38 billion. AEP shares surged up to a record high on Thursday afternoon and Exelon's shares rose by 8.8% following the results. DATA CENTER DEMAND SPLENDERS Many utilities continue to report a ballooning demand for electricity from data centers, despite a recent flurry announcements by power companies and data center industry. AEP has now signed agreements for 56 gigawatts, which is double what it was in October. It also received requests for 180 additional gigawatts. AEP stated that 80% of their growth is driven by hyperscalers such as Alphabet’s Google, Amazon.com, and Meta. AFFORDABILITY Utility companies face increasing political and regulatory pressure to protect residential customers from higher bills as they invest heavily to meet the demand. James West, an analyst at Melius Research said that the conversation had shifted from affordability to cost. He added that federal and state initiatives are being taken to reduce power bills. Exelon, one of the utilities operating within PJM Interconnection (North America's largest wholesale electricity market and power grid), has seen its bills rise by more than 20 percent in some areas during the last year as demand for data centers outpaced supply. Exelon proposes allowing regulated utilities to own and build generation in PJM. This would require legislative approval across several Mid-Atlantic States where it operates, and could threaten the market share of independent producers. Calvin Butler, CEO of the company, said that it plans to continue this effort in 2019. Independent power producers, who currently own the majority of generation in PJM, have resisted. They claim that utility ownership can shift costs to captive customers that pay for regulated 'utility infrastructure expenditures in their bills. Calvin Butler, Exelon's CEO, said on Thursday that the focus of everything is affordability and maintaining reliability. AEP, who also supports the expansion of regulated generation, stated that it hopes to limit the impact on customers through federal loans, grants from states and revised rate designs.
-
Stocks drop with tech slide, yields decline as well
Investors were cautious as they awaited the U.S. Inflation data due on Friday. U.S. Treasury Yields also fell. The S&P 500 was impacted most by the?technology /sector, which fell more than 2%. Investor confidence was shaken by a number of stock sales this month, including those in software groups. This is due to concerns about the potential for artificial intelligence to disrupt certain industries. The unexpectedly strong U.S. employment report released on Wednesday has eroded expectations for a rate cut from the Federal Reserve in the near future. Data showed that new applications for the?U.S. Last week, unemployment benefits declined less than expected. The expectation that the U.S. Central Bank could cut interest rates had been increasing until Wednesday's employment report. Investors are analyzing this week's numbers and weighing up the Fed's future steps. The next important data point is the U.S. The consumer price index (CPI) is set to be released this Friday. Jay Hatfield, CEO of Infrastructure Capital Advisors, New York, stated that "the bull case for the Fed's cutting was largely centered on the weak employment picture, so this case was challenged." Treasury yields?have continued to decline after a strong auction of 30-year debt. The yield on the benchmark 10-year U.S. notes dropped 7.7 basis points, to 4.106% from 4.183%, late Wednesday. It was its largest drop since October 10. The Dow Jones Industrial Average dropped 400.87 points or 0.79% to 49,723.02; the S&P 500 declined 78.95 or 1.13% to 6,862.52; and the Nasdaq Composite lost 412.08 or 1.79% to 22,654.34. MSCI's global stock index fell by 8.01 points or 0.75 percent to 1,047.70. The pan-European STOXX 600 Index finished 0.5% lower, at 618.52. Most regional benchmarks reversed course and closed in negative territory. The dollar index was not much changed in terms of currencies. The dollar index, which measures the greenback against a basket of currencies, including the yen, the euro and others, increased by 0.04%, while the euro fell by 0.03%, to $1.1866. The dollar fell?0.23% against the Japanese yen to 152.91. The yen is up as investors are warming to the idea that the new government will be fiscally responsible in Japan and Japan's financial situation may be favorable over the long term. Oil prices dropped Due to falling demand and expected supply increases, there are fewer concerns about a renewed Middle East conflict. U.S. Crude fell $1.79 and settled at $62.84 per barrel, while Brent fell $1.88 for a final price of $67.52. Spot gold dropped 2.83%, to $4.934.57 per ounce.
-
Oil prices drop on forecast supply, easing risks
Prices of oil?dropped Thursday as a result of falling?demand and easing fears about renewed Middle?East?conflicts. Brent crude oil futures settled on $67.52 per barrel, down $1.88 or 2.71%. U.S. West Texas Intermediate finished at $62.84 per barrel, down by $1.79 or 2.77%. The International Energy Agency announced on Thursday that global oil demand would rise slower than expected this year. However, it projected a large surplus despite the outages?that reduced supply in January. Brent and WTI benchmarks reversed their gains to become negative after the IEA monthly report. Earlier, they had been supported by concerns about the U.S. Iran backdrop. Benjamin Netanyahu, Israeli Prime Minister, said that Donald Trump seemed to be framing an end to the conflict between Iran and the United States over nuclear weapons as he left Washington. "The fact President?Trump is continuing to negotiate with Iran will lead to a reduced geopolitical risks," said Andrew Lipow, president at Lipow 'Oil Associates. Lipow stated that the IEA's forecast showed a "pretty substantial" drop in demand by 2026. He said, "This market anticipates an increase in the supply from Venezuela." Trump stated on Wednesday that after his talks with Netanyahu, they still had not reached a final agreement about how to proceed with Iran. However, he said that the negotiations with Tehran will continue. Trump stated on Tuesday that he was considering sending a 2nd aircraft carrier to Middle East in the event that a deal with Iran is not reached. Date and location of the next round of talks are yet to be determined. The?early gains in crude oil prices were capped by a hefty increase in U.S. inventories. The Energy Information Administration reported that U.S. crude stocks rose by 8.5 millions barrels, to 428.8million barrels, last week. This was far more than the 793,000 barrels analysts expected in a survey. EIA data show that the U.S. refinery utilization rates dropped by 1.1 percentage point in a week, to 89.4%. Data from industry sources showed that Russia's seaborne petroleum products exports rose 0.7% in January from December, to 9.12 millions metric tons, due to a high fuel output and seasonal decline in domestic demand. Reporting by Erwin Seba, Enes Tunagur in London, Sam Li, and Lewis Jackson in Beijing. Editing by David Gregorio and Rod Nickel.
-
Entergy increases spending plan to meet growing demand for data centers
Entergy, a U.S.-based electric utility, raised its long-term capital expenditure plan by $2 billion on Thursday as power producers scramble to meet the growing demand for AI-driven data centers. In afternoon trading, shares of the company rose 1.7%. The U.S. utility sector is supported by a steady demand for electricity from consumers and small to mid-sized businesses. However, high regulatory, financing, and operating costs continue the pressure on this sector. As data centers dedicated to artificial intelligence, cryptocurrency and other technologies expand and customers electrify heating systems and transportation, power consumption will also rise. According to the company, current data center contracts will provide around $5 billion in fixed costs that will offset residential rates for the duration of the agreement. Entergy Louisiana filed a request in December to purchase the natural gas-fired Cottonwood generating station for $1.5 billion. New Orleans utility forecasts capital expenditures of $43 billion from 2026-2029, with $11.6 billion for this year. In 2025, Entergy will have total retail sales of 30,017 gigawatt-hours (GWh), compared to 29,497 last year. However, the company's performance was impacted by an increase in debt, which grew nearly 7% from year to year, reaching $31 million. Entergy’s operating and maintenance costs rose 8.6% on an annual basis in the fourth quarter to $26.67 for a megawatt hour (MWh), and full-year O&M expenses and nuclear refueling expenses increased by 1.2% to $20.02 per MWh. According to LSEG data, the utility now expects to achieve a full-year adjusted net profit of between $4.25 and $4.45 per share. The midpoint is lower than the average analyst estimate of $4.41. Entergy's adjusted profit per share for the quarter ended December 31 was 51 cents, missing analysts' average estimates of 52 cents. (Reporting and editing by Maju Samuel in Bengaluru, Pranav Mathur from Bengaluru)
-
Stocks and tech shares fall; yields decline as well
Investors were 'cautious' ahead of Friday's U.S. Inflation data, and U.S. Treasury yields also declined. Wall Street's three major indexes were each down by more than 1%. The S&P 500 was led down by the financials and technology sectors. Investors have been shaken by a number of stock selloffs this month, including in software groups. This is due to concerns about the potential for artificial intelligence to disrupt certain industries. The unexpectedly strong U.S. job report released on Wednesday has eroded the Federal Reserve's expectations for a near-term rate cut. Data showed that new U.S. unemployment benefit applications decreased less than anticipated last week. The expectation that the U.S. Central Bank could cut interest rates was creeping up until Wednesday's employment report. Investors are weighing up the Fed's future steps and digesting the data from this week. The next key data point is the U.S. Consumer Price Index (CPI), which will be released on the Friday. Jay Hatfield, CEO of Infrastructure Capital Advisors, New York said that "the bull?case for the Fed's cut was pretty much centered on the weak employment situation, so this case was challenged." Treasury yields temporarily reversed their declines after the data. The yield on the benchmark U.S. 10 year notes dropped 5.8 basis points from 4.183% to 4.125% late on Wednesday. It is now on course for its fifth decline in six sessions. The Dow Jones Industrial Average dropped 516.21 or 1.03% to 49,605.19. The S&P 500 declined 78.52 or 1.13% to 6,862.95. And the Nasdaq Composite was down 371.24 or 1.61% to 22,695.23. The MSCI index of global stocks fell 7.92 points or 0.75 percent to 1,047.65. The pan-European STOXX600 index Finishing Most regional benchmarks reversed course and closed in "negative territory". The?dollar index did not change much in terms of currencies. The index measures the greenback in relation to a basket of currencies, including the yen, the euro and others. It rose by 0.01%, while the euro fell by 0.02%, at $1.1868. The dollar fell 0.38% against the Japanese yen to 152.66. Investors have risen in support of the yen as they believe that Japan's new government will be fiscally responsible. Brent fell to $67.48 a barrel, a drop of 2.77% for the day. U.S. crude also fell to $62.78 per barrel. Spot gold dropped 2.49% to $4951.99 per ounce.
-
Aluminium prices fall from two-week highs as other markets plunge
Aluminum prices reached a two-week high after Australia's South32 confirmed that it would close a smelter located in Mozambique. However, all metals fell later as investor sentiment soured and financial markets tumbled. Benchmark three-month aluminum on the London Metal Exchange reached its highest since January 30, at $3,163.50 per metric ton. South32 confirmed it would place its Mozambique Aluminium plant on care and maintainance next month due to a power shortage. Aluminum, however, as well as other metals,?moved in the red during European afternoon trading, along with financial markets and was down 0.1% at $3.100 by 1730 GMT. U.S. indexes dropped on renewed selling in technology and software shares. Gold prices fell to a one-week low, as positive U.S. data on the labour market tempered expectations for central bank rate reductions. LME copper, slightly firmer than in the morning, fell 2.3% to $12 869 per ton. The LME?copper reached a record high of $14,527.50 per ton on the 29th January, fueled by speculative purchases. It is still up 31% in the last six month. Ole Hansen is the head of commodity strategy for Saxo Bank in Copenhagen. We're about to enter a quieter period of the Lunar New Year. It's now a matter of how much risk speculators want to take on during this time. China's physical demand for metals has fallen ahead of the nine-day Lunar New Year holiday, which begins on February 15, when economic activity will stall. LME 'nickel' fell 3.2% to $17.430 a ton due to profit-taking. This erased a 2.2% gain made on Wednesday, after Indonesia cut the mining quotas for PT Weda Bay Nickel, 'the world's largest nickel mine', sharply. (Reporting by Eric Onstad; Additional reporting by Lewis Jackson and Dylan Duan in China; Editing by Emelia Sithole-Matarise, Kirun Donovan, Varun H K) (Reporting and editing by Emelia Sithole Matarise, Kirun Donovan and Varun H K; Additional reporting and editing by Lewis Jackson in China and Dylan Duan).
-
Nuclearelectrica Romania approves SMR nuclear plant
Nuclearelectrica, a state-owned Romanian nuclear power company, announced on Thursday that it had made a decision to invest in a small modular plant. This could be the first project in Europe using this technology. The project in central Romania, Doicesti, is to have six reactors with a capacity total of 460MW. It will be using technology from the U.S. NuScale Power. Romanian Nuclearelectrica holds a 50% stake in the joint-venture. The first reactor is the final investment decision, and the other five are dependent on the success of the technology. The original deadline of 2029 for the finalization of the first reactor was pushed back to?2030. The cost of the SMR was not specified by the company. Romania wants to 'cut its carbon emissions' in order to meet EU reduction goals and boost energy security. This is a pressing issue after Russia's invasion into Ukraine in February 2022. The European Union uses a mixture of gas, coal and renewable energy sources to generate electricity. It has also committed to phase out brown coal under the terms agreed as part of the exchange for European Union funding. Nuclearelectrica is a company that has two 706-megawatt reactors using Canadian CANDU technologies. These are owned by AtkinsRealis (formerly SNC Lavalin), and account for about a fifth of the EU state's electricity production. It signed a 3.2-billion-euro ($3.80-billion) main engineering contract in 2024 to build two additional 700 MW reactors by 2032, with a consortium including U.S. Fluor Corp. and Sargent & Lundy. Two new reactors, as well as the SMR project, would allow Romania to double its nuclear power capacity. This is in order to reduce carbon emissions and meet EU goals for reductions.
-
Trump praises Venezuela's good relations, but says oil magnate Sargeant doesn't represent US
Donald Trump, the U.S. president, said that Harry Sargeant III, a billionaire energy entrepreneur and Republican donor who is a Republican donor to the U.S. government has no authority to act for them. He also added that relations between Venezuela and?the U.S. had been "extraordinary." "He has no authority to act for the United States of America in any way, shape, or form. Neither does anyone else who is not approved by State Department." Trump stated in a Truth Social post that without this approval, nobody is authorized to represent the United States of America. He was apparently referring to an article published by The Wall Street Journal on Wednesday. According to four sources, it was reported in January that Sargeant, his team, and the Trump administration were advising on how to engineer the return of American oil companies to Venezuela, even though Sargeant claimed he wasn't a formal advisor. Trump said Washington "deals?very well? with Venezuelan interim president Delcy Rodriguez," praising Secretary Marco Rubio and other U.S. officials. "Relations between Venezuela and the United States were, to put it mildly - extraordinary!" Trump wrote in his blog. "But we only speak for ourselves and do not want there to any confusion or misrepresentation." Sargeant is a Republican donor and Trump's golf buddy. He has longstanding connections to Venezuela's petroleum industry. Sargeant has been working in Venezuela since the 1980s. His businesses there buy and sell asphalt that can be produced from heavy crude oil. He has also invested heavily in the production of several of the country's oilfields. He said he had a history of dealings with senior Venezuelan officials including Rodriguez and the?U.S. ousted President Nicolas Maduro. He has been reported to have discussed the need for U.S. officials to invest in Venezuela's oil-infrastructure with him. Sargeant said that in February 2025 he helped to broker a meeting with special U.S.?envoy Richard Grenell, in which the two discussed deportation and repatriation of migrants to Venezuela, as well as the release of American prisoner and the possibility of the U.S. extending a license to Chevron for operations in Venezuela.
British Organization - Dec 13
The following are the leading stories on the business pages of British newspapers. Reuters has not validated these stories and does not attest their accuracy.
The Times
- Sanjay Shah, a British hedge fund trader, has actually been sentenced to 12 years in jail by a court in Denmark after being found guilty of defrauding the state of 1 billion pounds ($ 1.27 billion) in a tax fraud.
- Banknote maker De La Rue said it is in talks with Disruptive Capital GP and Pension SuperFund Capital for a sale of approximately 40% of its equity that would value the British business at about 245 million pounds.
The Guardian
- Britain's energy regulator Ofgem stated that energy suppliers will need to use customers a zero standing charge tariff by next winter season to address criticism of the daily fees, which customer champ Martin Lewis described as a poll tax on gas and electrical energy bills.
- Britain's monetary regulator is taking longer than typical to authorize the seller Shein's London listing because it is inspecting its supply chain oversight and evaluating legal threats after an advocacy group for China's Uyghur population challenged the listing.
The Telegraph
- British retail magnate Mike Ashley has actually accused Boohoo of outright hypocrisy as he prepares for an investor vote to win a board seat next week.
- The Royal District of Windsor and Maidenhead is seeking a. record council tax increase of 25 pence to avoid ending up being the latest. council to state personal bankruptcy.
Sky News
- The Daily Telegraph's publisher is to hand hundreds of. personnel a ₤ 500 perk this month as unpredictability over its ownership. looks set to stretch into a 3rd calendar year.
- Plans to green the UK's power system will safeguard. consumers from future energy crises and have the potential to. bring down expenses for great, the federal government has said.
(source: Reuters)