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Pinnacle West's quarterly profit increases on robust electricity demand
Pinnacle West Capital announced a higher third-quarter profit Monday. This was boosted by a rising demand for electricity due to the scorching summer heat. Lower operations and maintenance costs and new customers also contributed. Phoenix, Arizona's electric utility reported that its service areas saw record temperatures in the summer months. This led to increased electricity consumption. The third quarter financial results were boosted by an increase in retail sales, driven by the fastest growing service territory in the nation and the third hottest Arizona summer in history. Arizona Public Service, a unit of the company that provides electricity to 1.4 million customers, plans to invest over $2.5 billion per year through 2028 in infrastructure upgrades and additions. Utilities have added billions to their budgets in the U.S. as they respond to massive requests from Big Tech companies for more power. They are also looking for suitable locations for data centres that could support complex AI tasks. In October, the U.S. Energy Information Administration predicted that power demand would reach record levels in 2025 and in 2026. In the third quarter ending September 30, the S&P utility index rose 6.8%. Utility said that net income attributable common shareholders increased to $413.2 millions, or $3.39 a share, from $395 million last year or $3.37 a share. Operating revenue was $1.82 billion for the third-quarter, compared to $1.77 billion in the same period last year. Operation and maintenance costs fell by nearly 3%, to $299.62 millions. The utility projected current-year earnings between $4.90 to $5.10 per share. This is higher than the previous outlook of $4.40 - $4.60 each. Pinnacle anticipates a 2026 earnings per share of $4.55 - $4.75. Reporting by Varun Sahay in Bengaluru and Pooja menon; editing by Sahal Muhammad
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Adani Power, an Indian company, opts for arbitration in a dispute over payment with Bangladesh
Adani Power, an Indian company, announced on Monday that it had chosen to use international arbitration in order to settle disputes regarding Bangladesh's payments for power. The company headed by Indian billionaire Gautam Adani is at odds with Bangladesh Power Development Board about unpaid electricity bills as part of an agreement that both parties signed in 2017. There are disagreements over the method of calculating and billing certain cost elements. Both partners have therefore agreed to use the dispute resolution procedure and are confident that a swift, smooth, and mutually beneficial solution will be reached," said an Adani Group spokesperson in a press release. Muhammad Fouzul Kabir Khan, Bangladesh's power minister de facto, has said that the negotiations continue. He said that if necessary, international arbitration would be sought after the process was completed. Adani Power provides electricity from its 1,600 megawatt coal-fired Godda power station in eastern India. This plant meets almost a tenth the power needs of Bangladesh. In December, the interim government of Bangladesh accused Adani and Godda Plant of violating the power purchase contract by refusing to pay tax benefits received from India. Adani received a tariff from Bangladesh of 14,87 takas ($0.1220), per unit, during the fiscal period ending June 30, 2024. This was higher than the average 9.57 takas for power supplied by Indian companies. Adani Power said last week that its electricity dues to Bangladesh have decreased significantly, from $900 million at the beginning of May and nearly $2 billion in early this year, to equivalent of fifteen days' tariff. Adani Power reiterated its commitment to the PPA and said it would continue to support Bangladesh with reliable, competitively priced and high-quality electricity. $1 = 121.8600 Taka (Written by Hritam mukherjee, edited by Janane Venkatraman & Arun Koyyur).
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Public Service Enterprise exceeds profit expectations on higher rates and rising power demand
Public Service Enterprise Group reported earnings for the third quarter that exceeded Wall Street expectations, thanks to higher gas and electric rates as well as rising demand in New Jersey. U.S. utilities benefit from a resilient energy demand, and a steady growth in rates as they invest billions of dollars into upgrading grids that are aging and expanding clean energy infrastructure. As extreme weather conditions and the surge in demand for data centers and power systems strains the system, many companies have requested rate increases to fund new transmissions lines and reliability improvement. Public Service Electric and Gas, a division of Public Service Enterprise (PSE&G), increased its earnings to $515 from $379 in the previous year, mainly due to new base rates and a higher transmission margin. PSE&G said that the gains were partially offset by increased maintenance and depreciation expenses. The profit from PSEG Power, and its other divisions, fell to $107 from $141 millions, due to lower nuclear production and higher maintenance costs at the Hope Creek Plant. However, stronger wholesale electricity prices provided some support. Its nuclear fleet produced 7.9 terawatt-hours of carbon-free electricity during the third quarter. Ralph LaRossa, CEO of PSEG, said the company remains committed to cost discipline and reliability despite a "growing imbalance between supply and demand" in the area that has pushed up summer electric bills by nearly 20%. The company has reduced its earnings forecast for the full year to $4.00-$4.06 a share from $3.94-4.06 previously. According to data compiled and analyzed by LSEG, the Newark, New Jersey based company reported an adjusted profit per share of $1.13 for the three-month period ended September 30. This compares with analysts' estimates of $1.02, which was the average. Reporting by Pranav mathur in Bengaluru, Editing by Shailesh kuber
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Investors await US private payroll data to see if gold prices will rise.
The dollar was near its highest level in three months on Monday, and traders were waiting for the U.S. payroll data to provide further clues about the Federal Reserve's outlook on monetary policy. By 1234 GMT, spot gold had risen 0.1% to $4,008.34 per ounce. U.S. Gold Futures for December Delivery rose by 0.7% to $4022.40. Dollar index was near its highest level in three months, making gold expensive for those who paid with other currencies. "We're still in consolidation mode." It's a little more difficult because there are no U.S. data, but weaker U.S. data will support rate cuts by the Fed and should allow gold to reach $4,200 an ounce before the end of this year," said UBS Analyst Giovanni Staunovo. According to CME's FedWatch tool, traders are pricing in a 70 percent chance that the Fed will cut rates in December. Gold that does not yield is more popular when interest rates are low or in economic times of uncertainty. Investors are watching the ADP U.S. Employment Data and ISM PMIs for this week to see if they can change the Fed's hawkish position. China has ended its long-standing policy of tax exemption for certain gold retailers, which could set back the buying spree in the world's largest consumer market. UBS expects the new rule to have only a marginal effect on gold prices globally, citing central bank purchases and strong investment. Analysts at Heraeus wrote in a report that gold prices may continue to fall if the resistance level between $4,000 and $4050 is maintained. The price of gold would have to rise above $4,155/oz for an initial indication to indicate a return to the rally," they said. Last week, U.S. president Donald Trump agreed to reduce tariffs against China in exchange of concessions from Beijing on the illicit fentanyl market, U.S. soya bean purchases and rare earths imports. Silver spot rose by 0.2%, to $48,75 per ounce. Platinum climbed 1.4%, to $1590.61, and palladium rose 0.6%, to $1442.81. (Reporting and editing by David Goodman, Shalesh Kuber and Anmol Chaubey from Bengaluru)
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Dealers say that India's palm oil imports in October fell to a five-month low.
Five dealers claim that India's palm oils imports fell in October to a 5-month low. This pushed the total purchase of 2024/25 to its lowest level in five years as buyers switched from palm oil to soyoil following a rise in palm oil prices. India's lower palm oil imports, which are the largest buyers of vegetable oils in the world, could increase inventories and put pressure on benchmark Malaysian palm futures. According to estimates by dealers, palm oil imports in October fell 27.6% on a month-to-month basis to 600,000 tons. This is the lowest level since May. Palm oil imports for the marketing year 2024/25 ended in October were down 16% at 7.56 million metric tons. This is the lowest level in five years. After trading at a higher price than other edible oils over several months, Rajesh Patel, managing partner of edible oil trader GGN Research, stated that palm oil had lost market share to soyoil. Imports of soyoil fell 17.1% from the previous month to 417,00 tons in October. Dealers said that in 2024/25 soyoil imported will surge 61.6%, to a record of 5.56 million tons. According to estimates from dealers, sunflower oil imports dropped 6.4% to 255,000 tonnes in October, bringing the total for the year down to 2.88 millions tons, or 17.7% less than a year ago. Estimates show that India's total imports of edible oils in October fell 20.7% from a previous month to 1.27 millions tons due to lower palm oil imports. Dealers said that edible oil imports in 2024/25 will rise 0.3% compared to a year earlier, reaching 16 million metric tonnes. Sandeep Bajoria of Sunvin Group in Mumbai, the vegetable oil brokerage said that edible oil imports decreased in October, as refiners anticipate a slowdown in demand in the months to come following the festival season rush. India imports most of its palm oil from Indonesia and Malaysia. It also imports a lot of soyoil, sunflower oil, and other oils from Argentina, Brazil and Ukraine. (Reporting and editing by Sharon Singleton; Sharon Singleton is the editor)
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China reduces gold tax exemption after state bank stops gold products enrolment
On Monday, a Chinese state bank shut down retail gold accounts for new investors. This comes two days after Beijing changed a longstanding tax exemption on the metal which is expected to impact retail demand in the largest consumer market of the world. China Construction Bank, a state-owned bank, announced on Monday that it will no longer accept applications to open a gold buying account without stating a valid reason. ICBC, another major bank, also limited new applicants. However they reversed their decision hours later. Beijing has made decisions Announcement Two days earlier, the government announced that the 13% exemption on value-added taxes would be reduced to 6% from November 1, for certain gold purchases made through the Shanghai Gold Exchange or the Shanghai Futures Exchange. Gold purchased as investment (such as gold bars or ingots) is exempt. The same goes for paper transactions on the exchange. The new regime is applicable to all non-members, regardless of how the gold will be used. UBS analyst Joni Tves wrote in a Monday note that "we expect the net impact to be higher costs for gold consumption in industrial and jewellery uses." She added that it could encourage more companies join the exchanges and improve liquidity and transparency. The new tax regime coincides with a rush of gold purchases around the world, particularly in China. Consumers have waited in line to purchase jewellery at retailers. Gold's price rose to a record of $4,381 per ounce on 20th October as a result of the buying. Gold spot prices briefly fell below $4,000 per ounce on Monday. They were last trading at that level, and have fallen about 9% from the previous record. On Monday, shares of gold jewellery retailers Laopu Gold, Chow Tai Fook, and Zhongjin Gold all fell by as much as 12% and 9%, respectively. The value-added exemption for platinum for China Platinum Company was removed last month. This also began on November 1. Reporting by Dylan Duan; Li Gu and Lewis Jackson, Editing by Christian Schmollinger & Sharon Singleton
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Copper prices steady as concerns over Chinese demand weigh
Metal traders reported that copper prices were stable on Monday, as a weaker dollar and slowing manufacturing in China's top consumer weighed on sentiment. Meanwhile, mounting supply concerns helped to support the price. By 1127 GMT, the benchmark copper price on London Metal Exchange had not changed much. It was $10,880 per metric ton. Last week, fears about shortages drove it to an all-time high of $11,200. The traders said the easing of trade tensions between China and the United States was a positive. A private sector survey conducted after Trump threatened to impose tariffs of 100% on Chinese products showed that China's factory activities in October expanded at slower pace due to the tariff anxiety. The Yangshan copper premium is a sign of weak purchasing The gauge is a measure of China's appetite to import copper. The premium is now $36 per ton, down from $58 at the end of September and $100 last May. Shanghai Futures Exchange monitors copper stocks in warehouses The increase of 45% to 116 140 tons since late August suggests that China has surpluses. Since Federal Reserve Chair Jerome Powell stated last week that the lack of data from the federal government could prevent central banks from cutting interest rates this year, the dollar has firmed up. The dollar has firmed up since Federal Reserve Chair Jerome Powell said last week that a lack of federal government data could prevent the central bank from making another interest rate cut this year. Goldman Sachs analysts do not expect the fundamental tightening expected by the markets to emerge in the next six-month period, despite the disruptions. They said that "even accounting for a significant decline in global refined product, we maintain our view that the copper market will be in small surplus by 2026. This is consistent with our forecast of $10,500/t in 2026." Other metals saw a 1% increase in aluminium to $2.912 per ton. Zinc gained 0.9% at $3.084, while lead rose by 0.5% to $2.026. Tin increased 0.2% to $35,175 while nickel fell 0.2% to $15,205.
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Investors await US private payroll data to see if gold prices will rise.
The dollar hovered around a three-month peak on Monday, and traders were waiting for the U.S. payroll data to get a better idea of the Federal Reserve's outlook on monetary policy. By 1129 GMT, spot gold had not changed much from $4,006.02 per ounce. U.S. Gold Futures for December Delivery rose by 0.5% to $4017.40. Dollar index was near its highest level in three months, making gold expensive for those who paid with other currencies. "We're still in consolidation mode." It's a little more difficult because there are no U.S. data, but weaker U.S. data will support rate cuts by the Fed and should allow gold to reach $4,200 an ounce before the end of this year," said UBS Analyst Giovanni Staunovo. According to CME's FedWatch tool, traders are pricing in a 70 percent chance that the Fed will cut rates in December. Gold that does not yield is more popular when interest rates are low or in economic times of uncertainty. Investors are watching the ADP U.S. Employment Data and ISM PMIs for this week to see if they can change the Fed's hawkish position. China has ended its long-standing policy of tax exemption for certain gold retailers, which could set back the buying spree in the world's largest consumer market. UBS expects the new rule to have only a marginal effect on gold prices globally, citing central bank purchases and strong investment. Analysts at Heraeus wrote in a report that gold prices may continue to fall if the resistance level between $4,000 and $4050 is maintained. The price of gold would have to rise above $4,155/oz for an initial indication to indicate a return to the rally," they said. Last week, U.S. president Donald Trump agreed to reduce tariffs against China in exchange of concessions from Beijing on the illicit fentanyl market, U.S. soya bean purchases and rare earths imports. The price of spot silver increased by 0.2%, to $48,72 per ounce. Platinum rose 1.9%, to $1597.34, and palladium grew 1%, to $1448.32. (Reporting from Brijesh Patel and Anmol Chaubey in Bengaluru, Editing by David Goodman & Shailesh Kumar)
Peacock: ROI-Spain teaches Europe about modern economics
Spain continues to be the fastest-growing economy in the Eurozone, and has outperformed its peers again in the third quarterly. The Iberian nation's successful mix of policies offers lessons that are at odds with global political trends.
Spain's economy has grown by 0.6% in the last three months, a rate slightly lower than the previous quarter but still well above the 0.2% for the Eurozone as a group. This continues a trend of positive growth over the past few years.
The International Monetary Fund has recently ranked Spain the fastest-growing advanced country, increasing its growth forecast for 2025 to 2.9% after a 3.5% increase in 2024. This is well above the 1.2% 2025 forecast of the entire bloc.
The healthy growth in Spain has contributed to a reduction of the debt/GDP, which dropped from 119% to 102% in 2018. The IMF predicts this ratio to fall into double digits in 2030.
Many of Spain's EU counterparts are watching this trend with envy. It's a far cry compared to the early 2010s, when the country suffered a housing bust and an existential banking crises.
What is the reason for this dramatic change?
Tourism boom, effective use of recovery funds from the pandemic era, and an emphasis on high-value service have all played a key role. Spain's high level of targeted immigration is another key growth driver. This comes at a time when many EU nations want to reduce migration.
SMART IMMIGRATION
Spain is unique in Europe for promoting immigration as a positive.
According to the Elcano Royal Institute, net international migration was responsible for the majority of Spain's 8.2 million population increase between 2000 and 2024. The institute stated that without net international migration, Spain's population would have grown by only a few thousand people.
In an interview with The Guardian, Prime Minister Pedro Sanchez proclaimed this fact, stating that immigration accounted for 25% of Spain's GDP per capita and 10% of social security revenue, but only 1% of the public expenditures.
Fitch, a credit rating agency, says that immigration has helped increase Spain's potential growth (the rate at which the economy can expand without causing inflation) to 2.0%.
Banco de Espana (the country's central banking institution) says that Spain's recent migration has had a positive impact on the economy because it was geared toward skilled workers in sectors with bottlenecks. Spain has been able tap into a large pool of Spanish-speaking Latin American workers.
Spain is a good example of how low productivity can be a burden on the major European economies.
Green Boss
Spain's sun-drenched weather is a key asset in its search for growth. It lends itself well to renewable energy.
Spain is aiming to be carbon neutral by 2050. According to the International Energy Agency (IEA), its massive investments in solar, wind, and renewable hydrogen should boost employment, research and development, and growth in the next years.
Spain has already reaped some benefits from its green drive, with some of the lowest wholesale prices for electricity in Europe.
Spain, Europe's second largest car producer, has attracted major investments, including from Germany and China, Chery and CATL, after announcing in 2020 a 5-billion euro plan to attract the electric vehicle and battery manufacture. It is reported that BYD may also be interested.
There have, however, been some bumps in the road. In April, Spain experienced the biggest blackout Europe has seen in over two decades. Although there's no evidence that the increased use of renewable energy was to blame, it is likely the result of the country failing to adapt its power infrastructure in order to keep pace with the rapid energy shift.
STUMBLING BLOCK
Madrid's policy mix may change in the next few years. Spain is not immune to the global trend of dissatisfaction towards the government.
This is for a number of good reasons. Many Spaniards have been shut out of the housing markets due to high property prices. Even though unemployment is at levels not seen since 2008 almost 2,5 million people remain unemployed. The government is also facing corruption allegations which it denies.
Recent opinion polls show that the next elections are due in 2027. Sanchez's ruling PSOE is lagging behind centre-right PP, but by a very small margin.
Spain's decade-long history shows, despite all the rhetoric to contrary, that it is possible for Europe to increase productivity and to slow down negative demographic trends.
It remains to be seen if other European countries will heed this message.
The views expressed are those of Mike Peacock. He is a former director of communications for the Bank of England, and former senior editor of. This column is a great read! Open Interest (ROI) is your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn and X.
(source: Reuters)