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Ameren's quarterly profits rise as infrastructure investments boost returns
Ameren, the utility company, reported a?23% increase in its first-quarter profits on Tuesday. This was primarily due to earnings from infrastructure investments that aimed to improve reliability. Utility companies are increasing spending on transmission and delivery networks to meet the rising demand for power in 'the U.S. Electric segment revenue rose by?2.4% in the quarter to $1.66?million, while revenue from the gas segment grew by?8.4% to $515?million. Ameren reported that its net income for the quarter ended March 31 rose to $357 million or $1.28 a share. This is up from $289 millions or $1.07 a share compared to a year earlier. St. The?St. The?Missouri division's quarterly results were negatively affected by lower retail electricity sales and higher interest costs, due to increased borrowing for infrastructure projects. Ameren 'Missouri reported a?electric?sales figure of 9,031 kilowatt-hours, down from 9,421 kilowatt-hours last year. This is due to the warmer than normal winter. Ameren Missouri and Ameren Illinois, its rate-regulated utility subsidiary companies, serve?about 2.5?million electricity customers and?more than 900?000 natural gas customers over a 64,000-square mile area. (Reporting and editing by Arunima Kumna and Sumit Saha, Bengaluru)
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US gasoline prices reach $4.50 per gallon as the summer driving season approaches
GasBuddy data showed that the U.S. average retail price of gas in the United States surpassed $4.50 a galon on Tuesday, for the first time since July 20, 2022. The U.S.-Israeli conflict?with _Iran? was disrupting a significant portion of the global oil supply shipped through the Strait of Hormuz. The U.S. Memorial Day Weekend and the peak driving season of summer are approaching. As President Donald Trump and Republicans campaign for November's midterm elections, rising pump prices present a serious political risk. Analysts say that without a de-escalation of the Middle East, U.S. motor oil prices could surpass previous records. As of 5:20 pm, the national average gasoline price was $4.52 per gallon. GasBuddy's data shows that the price of gasoline in the U.S. was $4.52 per gallon on Tuesday. Prices reached $4 late in March, the highest level since August 2022 when Russia invaded Ukraine. GasBuddy's data shows that California has the highest average price at the pump in the United States, $6.14 per gallon. On fears that the Gulf War will continue, gasoline prices have risen along with crude oil futures. Brent crude, the global benchmark for crude oil prices has risen 58% since war began. GasBuddy analyst Patrick De Haan stated that the Strait of Hormuz closure continues to push up oil and gasoline prices. However, we've seen refinery issues which have exacerbated some of these increases. Last week, BP's 440,000-barrel-per-day oil refinery in Whiting, Indiana, experienced a brief power outage that caused one of its processing units to be shut down. The company has since reported that operations have been restored. De Haan stated that "if the Strait of Hormuz doesn't open, I expect gas prices to stay over $4.50 per gallon this summer." Before U.S. and Israel launched their attack on Iran, February 28, approximately?20% global oil supplies were passing through the Strait of Hormuz every day. Morgan Stanley stated that U.S. gas inventories are?drawing quicker than the normal seasonal pattern. The base case indicated that stocks would fall below 200 million barrels in late August, close to historic summer lows. EIA data shows that U.S. gasoline inventories fell by over 6 million barrels in the last week, and were at 222.3 millions barrels on April 24. This was the lowest level since December, and more than 2,000,000 barrels below seasonal averages for the past five years. The data show that gasoline demand reached 8.95 million barrels based on a four week average, an increase of 1% compared to the same period last year. Morgan Stanley said that the?demand remained stable despite pump prices of $4 or more. It is not driving draws, but it's not soft enough for the supply-driven stocks to slow down. U.S. gasoline contracts were hovering around $3.64 per gallon on Monday, their highest price since 2022.
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Iranian media reports three dead in fire at a shopping centre west from Tehran
Iranian media reported that at least?three people were killed and 26 injured after a fire broke out in a shopping center west of Tehran. IRIB, Iran's national broadcaster, cited the?fire departments as saying that the?fire had been "largely contained". Fars, a semi-official news agency, reported that the cause of the incident is still unknown. Iranian media, including Fars showed a video of a plume of heavy smoke rising out of the site. The location of buildings, utility poles and trees, and the road layout matched the satellite and archive imagery. Fire broke out after a renewed 'fire exchange' between Iran and the United States on Monday.
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Utility WEC Energy’s first-quarter profits rise on higher power demand
WEC Energy, a utility firm, reported an increase in its 'first quarter profit' on Tuesday. This was largely due to higher sales to residential and industrial customers. It also said that it worked with large hyperscale clients for a potential growth of load of up to four gigawatts. The U.S. is expecting its power consumption to increase further this year after reaching its second consecutive annual record in 2025. This will be driven by Big Techs race to build energy-intensive, data centers that support AI initiatives and homes and business increasingly using electricity for heating and transportation. WEC announced on a call after earnings that it received regulatory approval to purchase three additional solar projects, as well as a battery-storage project. The company plans to invest $730 millions. The company reported that the consumption of electricity by large commercial and industrial clients increased 2.7% in the last quarter, while the consumption by small commercial and industrial consumers increased 0.7%. The residential electricity consumption increased by 0.2% compared to a year ago, and total retail deliveries of electricity rose by 1.3%. WEC, a company that serves 4.7 million customers in Wisconsin, Illinois, Michigan, and Minnesota, reported that natural gas deliveries to Wisconsin dropped 2.1% during the first quarter. Natural gas is provided by the company through its We Power and Wisconsin Public Service divisions. CEO Scott Lauber said, "The first quarter results were solid due to the continued execution of our capital plan and the focus on operational efficiencies." WEC announced in February that it would increase capital expenditure by $1 billion over the next five year as it increased output to power Microsoft's data centers. The company expects to increase its capital spending in the third quarter. The company's net quarterly income increased to $804.4 millions, or $2.45 a share, up from $724.2millions, or $2.27 a share, one year earlier. (Reporting by Dharna Bafna in Bengaluru; Editing by Shilpi Majumdar and Tasim Zahid)
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After a cancer battle, Jose 'Piculin' Ortiz, the Puerto Rican basketball legend who was known as 'Piculin' Ortiz, died at 62.
The Puerto Rico Basketball Federation announced on Tuesday that the legendary Puerto Rican basketball player Jose "Piculin Ortiz" died aged 62, after fighting colorectal carcinoma for several years. Today, Puerto Rico has lost?more than a sportsman. It?loses an icon. The Puerto Rico Basketball Federation told X, "Thank you for your joy and for proudly representing our flag." Your legacy will continue to live on every court, and in each generation that you inspired. Ortiz was a Puerto Rican born in Aibonito on October 25, 1964. He was 2.08 meters high when he became a dominant player in Puerto Rico's local league. Ortiz, who played college basketball for Oregon State University, was selected 15th by the Utah Jazz in the?NBA draft. He began his professional career in Europe with CAI Zaragoza, in Spain. Later, he briefly played for the Utah Jazz. After his NBA stint, Ortiz returned home to Europe and established a successful career in Spain. He played for prestigious clubs such as Real Madrid, Barcelona, Festina Andorra, and Unicaja Malaga. He played in Greece and finished his career in Spain. Ortiz has been a member of the Puerto Rican national team for more than two decades. He was part of the team that shocked the United States in 2004 at the Athens Olympics. This is one of "the most significant" results in Puerto Rican sport history. In 2019, he was inducted into FIBA Hall of Fame. In his later years, he also had a 'failed run for political office' and legal problems. This included a drug possession conviction after authorities discovered more than 200 marijuana plants in the residence where he lived. Carlos Serrano wrote the article. Translation by Angelica Medina, Mexico City Editing By Toby Davis
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Middle East risk lingers after gold gains after reaching a more than one-month-low
Investors assessed the impact of a fragile?Middle?East ceasefire on inflation and interest rate expectations. Gold spot was up 0.8% at $4,557.56 an ounce as of 1:31 pm EDT (1731 GMT), having touched its lowest level since Monday. U.S. Gold Futures closed 0.8% higher, at $4,568.50. Oil prices are also easing, which is supporting the market. Market analysts at American Gold Exchange Jim Wyckoff said that the market will continue to monitor headlines but could shift its focus to economic data. He added that "gold bulls?need an important fundamental spark to recover their footing." United Arab Emirates claimed that it was being attacked by Iranian missiles and drones. Washington, however, said that a fragile ceasefire remained intact despite a previous exchange of fire between?U.S. Forces attempted to forcefully open the Strait of Hormuz. Since the attacks on February 28, the narrow waterway that carries a significant share of oil, fertiliser, and other commodities around world has been closed, driving prices up all over. The oil prices fell on Tuesday but the losses were not as large. Energy prices are rising, which could lead to inflation and delay central banks' ease cycles. Gold is often seen as a hedge to inflation and uncertainty. However, when interest rates rise, it loses its appeal, because rising yields make other assets less appealing. Fawad Rasaqzada is a market analyst for City Index. He said that the demand for safe-haven assets remains even though its influence has weakened. Gold is increasingly viewed as a risky asset. "However, the need to hedge and central bank purchases have helped limit further downside movements so far," said?Razaqzada. The release of the U.S. Employment Report later this week is a test to see if the 'economy is resilient enough to maintain the Federal Reserve's monetary policies on hold or if a softening of the labor market might revive the argument for rate reductions. Silver spot rose 0.4%, to $73.03; platinum gained 1%, to $1,963.30; and palladium increased 1.5%, to $1,501.41. Ashitha Shivaprasad reported from Bengaluru, and Mark Potter, Shailesh Kumar and Diti pujara edited the article.
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Portugal prepares draft bill for windfall tax on energy firms
Portugal's Finance Minister Joaquim Mirando Sarmento announced on Tuesday that the government would ask parliament for approval to impose a "windfall tax" on energy companies who benefited from an increase in energy prices due to the Iran War. Portugal, Germany, Italy and Spain, as well as Austria, wrote to the European Commission in April to ask for a similar tax on a "European" level. However, Brussels let individual countries decide. Miranda Sarmento, the Portuguese Minister of Foreign Affairs, said that Portugal would "seek to achieve the highest level of coordination possible" with other countries. Miranda Sarmento, speaking to reporters in Brussels about the energy price shock that occurred after Russia invaded?Ukraine, said: "We will recalibrate, improve and, in the short term, we will present a proposed to parliament." He stated that the current situation is different from '2022 because 'overall inflationary forces are much lower. Core inflation, excluding food and energy, runs at around 2.2%. The Socialist Party introduced the mechanism 2022, and despite the fact that the centre-right government only holds a small minority of seats, it is expected to approve the proposal. (Reporting and editing by Andrei Khalip; Sergio Goncalves)
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Saudi Arabia's quarterly budget deficit balloons to $33.5 Billion, driven by spending boom
Saudi Arabia has reported a first quarter 'fiscal deficit' of 125.7 billion Riyals ($33.5 billion), which is not far off from its projected full-year figure of $44 billion. It also increased?spending in order to support the economy amid disruptions caused by the Iran War. In response to U.S. and Israeli strikes which began on 28 February, Iran has attacked Gulf states. This has damaged major energy infrastructure and disrupted shipping in the Strait of Hormuz. The Strait of Hormuz normally handles about 20% of all global oil and LNG?flows. Saudi Arabia's economic growth will slow down sharply in this year, despite higher oil prices. This is also expected to be the case for non-oil industries such as tourism. The Finance Ministry reported that total government expenditures reached 386.7 billion Riyals in the first quarter of this year, an increase of 20% compared to the same period last year. This was more than the revenues, which were 261.0 billion Riyals. * "Despite a?marked increase in the deficit in 1Q, we still expect a?smaller deficit in 2026 for the full year than in 2025," Monica Malik said, chief economist of Abu Dhabi Commercial Bank. The sharp rise in oil prices since March will offset the loss of output. * Oil revenues fell 3%, to 144.7 billion Riyals from 149.8 in Q1 2025. * Non-oil revenue rose by?2% from 113.8 billion to 116.3 billion Riyals a year ago. * Military expenditures increased by 26%, to 64.7 billion Riyals, compared with 51.4 billion Riyals in Q1 of 2025. The International Monetary Fund reported that the GDP growth rate was 2.8% in the first quarter of this year, down from 3.7% last year. However, the impact on the economy is expected to be'short-lived' and 'limited, according to the IMF. * The kingdom is following its Vision 2030 economic plan, which requires hundreds of billions in government investment to reduce the dependence on hydrocarbon revenue. Saudi Arabia's budget deficit in 2025 was 276 billion riyals, higher than the 245 billion riyals forecast.
ROI-Inflation-spooked rates markets have overshot: McGeever
The markets overshoot. And the recent dramatic increase in "bets" on higher interest rates due to the Middle East energy crisis is just the latest example: the move is logical but its magnitude is questionable.
The Iran?war is not over and the markets are still 'in flux' as the dust settles after one of the most busy central bank weeks of recent years. Rates traders may want to take a pause and reevaluate.
The abrupt change in global rates reflects concerns about the short-term impact on inflation of the soaring prices for oil and gas. Federal Reserve now has a higher probability of raising U.S. interest rates in this year rather than cutting them. The European Central Bank and Bank of England will also likely raise their rates multiple times starting next month.
Zoom in on the shifts in Europe.
On February 27, a day before the joint U.S. - Israeli strike on Iran, UK rate futures indicated 50 basis points of ease by the end of the year, or two quarter point rate cuts. This has now flipped into almost 75 basis point of tightening or three rate hikes.
It is remarkable to see a 125-basis-point swing in just a few weeks.
Euro zone futures are now pricing in two rate increases, from implying the ECB would keep its key policy rate at 2% throughout this year.
This hawkish course could be realized. The policymakers have not recovered from the mistake they made in 2021-22 when they misread "transitory inflation". The?last two time they raised rates when oil was well above $100 per barrel, in 2008 and 2011, they were widely accused as making policy mistakes.
Limits of 2022 Comparative Analysis
Analysts are drawing comparisons between the current energy crisis and the shock caused by Russia's invasion in Ukraine? in February 2022, which helped to fuel the worst bouts of inflation on developed markets for decades.
There are some key differences.
Interest rates in February 2022 were significantly lower than what they are now. The G4 central banks' policy rates were near zero lower bound at that time.
In addition, trillions of dollars in stimulus money for pandemic fighting and the explosion of economic activity following lockdowns also contributed to inflation in 2022. Early 2022, real interest rates were negative.
The combination of super-easy fiscal policy and monetary policies meant that inflation was far from temporary. The U.S. inflation rate has not returned to its target despite the biggest hike cycle in over 40 years.
Today, fiscal stimulus is on the agenda. Governments from Washington to Tokyo and Berlin are planning to cut taxes while spending heavily on energy and defense. These volumes are nowhere near as large as the pandemic-fighting package that was worth at least 10% GDP.
GOLDMAN AND CITI STICK WITH THE U.S. RATE CUTS VIEW
Goldman Sachs economists and Citi analysts are part of a shrinking group that is fighting the tide of forecast revisions. They also want the Fed to act quickly and raise rates in order to curb price pressures.
Jan Hatzius, his team and Goldman still expect two Fed rate reductions this year. Andrew Hollenhorst and team from Citi are still calling for three.
The argument is that any inflation will be temporary, perhaps lasting a few weeks, but the risks for growth and employment are much greater. They expect a temporary shock to the supply that will raise prices, but also deal a greater blow to demand.
It's not impossible. The Purchasing Managers' Index data released on Tuesday revealed that the U.S. Private Sector output in March was at its lowest level in 11 months. Overall activity in Europe fell to a 10 month low. And activity in Britain grew at its slowest rate in six months.
The rate markets are understandably on edge due to the "speed and magnitude" of the energy shock. It will be hard to justify raising interest rates when unemployment and growth are slowing, even if inflation is higher than target in the U.S. or Britain.
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(source: Reuters)