Stocks mostly fall after Friday's gains; US Dollar edges higher
After a strong performance on Friday, major stock indexes largely declined on Monday. The dollar has stabilized, and a rate cut in September is likely but not guaranteed. Powell's comments at Jackson Hole caused the market to fall last week. U.S. Treasury Yields rose on Monday. Barclays BNP Paribas, Deutsche Bank and other major brokerages now expect the Fed to cut rates by 25 basis points in September. Fed funds futures are pricing 84% odds that a rate cut will occur in September, according to CME Group's FedWatch Tool. On Friday, there was much excitement about Powell essentially indicating that a rate reduction would be likely.
WaterBridge, backed by Five Points, files for US IPO in a hot listings market
WaterBridge Infrastructure, a midstream water management firm, filed for an initial public offering in the United States on Friday. This highlights the growing momentum of new listings. In recent days, a number of corporate issuers joined the IPO pipeline. This could lead to a September launch. Positive IPO sentiment is also expected to be supported by firmer bets on potential rate cuts in the near future. Josef Schuster, CEO of IPOX, said that lower U.S. interest rates and a proliferating rally in U.S. mid- and small-cap stocks could add fuel towards the end of the year.
Cox, a Spanish company, prepares a multi-billion dollar investment plan focusing on Mexico
Nacho Moreno, CEO of Spanish energy company Cox, said that the new strategic plan will be focused on Mexico where Cox plans to invest more than $10 billion by 2030 in renewable energy and water. Moreno stated that this figure includes Cox's acquisition of Iberdrola assets in the country for $4.2 billion, a deal which was "transformative" and allowed Cox already to reach the targets set by the company for 2028. The new plan will be unveiled on September 25, according to the schedule. Iberdrola's deal included 15 power stations with a combined capacity of 2.6 gigawatts and an pipeline of 11.8 GW of renewable projects.
Trump tariffs stymie M&As and IPOs during what was expected to be a record-breaking quarter
The global trade war started by U.S. president Donald Trump, and the subsequent market turmoil, has shattered bankers' expectations for a strong start to Wall Street deals in 2018. Dealogic data for the first quarter showed that mergers and purchases volume increased 12.6% from the year-ago period to $984.38 Billion. The Asia Pacific region was largely responsible for this, where three state-run deals announced on Sunday by China and a port deal driven by Trump nearly doubled the M&A volume compared to last year. Worldwide, banks are reducing deals and revenue. The first quarter volume in the U.S. fell 13%, to $436.56 Billion. This is almost half of all global M&A deals.
M&A revenues fall as Trump pursues his tariffs. Global deal activity is disappointing
The global trade war started by U.S. president Donald Trump, and the subsequent market turmoil, has shattered bankers' expectations for a strong start to Wall Street deals in 2018. Dealogic data for the first quarter showed that mergers and purchases volume increased 12.6% from the year-ago period to $984.38 Billion. The Asia Pacific region was largely responsible for this, where three state-run deals announced on Sunday by China and a port deal driven by Trump nearly doubled the M&A volume compared to last year. Worldwide, banks are reducing deals and revenue. The first quarter volume in the U.S. fell 13%, to $436.56 Billion. This is almost half of all global M&A deals.
Microsoft's data center worries continue to persist, as Europe's top AI companies slide further.
The sentiment of some of Europe's top AI stocks was dampened for a second consecutive day on Tuesday after an analyst report late last week, which warned of a possible slowdown in Microsoft data centre leasing, impacted the market ahead of Nvidia's make-or-break earnings. In less than a week, the Chinese DeepSeek artificial intelligence model was released. This triggered a sell-off of tech stocks and a reassessment on how much Western companies spend on infrastructure and development. TD Cowen analysts stated in a late Friday note that Microsoft has cancelled leases on a large amount of U.S. Data Centre capacity in the United States.
How Trump's tariffs could affect the commodity and energy sector
Donald Trump, the U.S. president, imposed duties on Canada and Mexico of 25% each and China a 10% tax on Saturday. He said the measures were necessary to fight illegal immigration and drug trafficking. Canada and Mexico immediately pledged retaliatory actions, while China announced it would challenge Trump’s tariffs at the World Trade Organization as well as take other countermeasures. Trump's decision has caused volatility on the commodities markets. We still expect Canadian oil companies to ultimately bear the majority of the burden with a wider than normal discount of $3 to $4 per barrel on Canadian crude due to the limited export markets.
Big Oil is not rushing to "drill, baby drill" this year despite Trump's agenda
Wall Street believes that U.S. energy companies will keep spending under control in 2025, and focus on shareholder returns despite President Donald Trump's calls to "drill baby, drill". This week, Big Oil will report its fourth-quarter results. The outlook for the next year should reflect Trump's agenda to maximize oil and gas production and the expectations of investors. In recent years, the industry has been pushing to reduce costs and increase output by using more efficient technologies rather than drilling new wells. As the global oil market continues to decline…
S&P 500 reaches record high thanks to Netflix results and AI investment plan
Wall Street indexes rose Wednesday. The benchmark S&P 500 hit a record during the session as investors cheered the quarterly report from streaming video provider Netflix and technology shares rallied after President Donald Trump's announcement of a private sector artificial intelligence infrastructure plan. The S&P 500 index's 11 main industry sectors were led by the technology sector, which saw a big boost from AI chip leaders Nvidia and Microsoft. The day after Trump's announcement, investors piled up bets on the promise of AI. A $500 billion investment plan for private sector AI infrastructure from a venture that includes Oracle…
S&P 500 reaches record highs on Netflix results and AI investment plans
Wall Street's major indexes rose Wednesday. The benchmark S&P 500 hit a record high as investors cheered the quarterly report from streaming video provider Netflix and technology shares rallied following the announcement of an artificial intelligence infrastructure plan for the private sector. Data pointing to an economy in which inflation is cooling and President Donald Trump's less aggressive approach to tariffs than expected have boosted risk appetites. Netflix, the S&P 500’s largest percentage gainer, posted a 9.8% increase after reporting a record number for holiday quarter subscribers. This allowed the company to raise prices for many service plans.
Orsted plunges 17% following US impairments, Trump adds uncertainty
Orsted shares fell 17% Tuesday, after the company posted an impairment charge for delays in a U.S. off-shore project. The sector is now facing uncertainty following President Donald Trump's withdrawal of government support for wind energy. Orsted announced a fourth quarter impairment charge of 12.1 billion Danish crowns (1.69 billion dollars) due to factors such as Sunrise Wind which will be the largest U.S. off-shore wind project when completed. Mads Nipper, CEO of the company, told investors that Tuesday's results were "very disappointing". It has been unable to unlock the full potential of the U.S.
Orsted shares fall 17% after US project fails, Trump's anti wind power policy hits
Orsted, the largest offshore wind developer in the world, saw its shares plummet 17% on February 2nd after it warned late on Monday about higher costs and delays for a critical U.S. offshore development. On his first day as president, Donald Trump announced that the U.S. government would no longer support wind power because windmills were ugly, expensive, and harmful to wildlife. Orsted announced late Monday that it had taken an impairment charge in the amount of $1.69 billion Danish crowns (12.1 billion Danish crowns) for the fourth quarter. The company cited a delay and increased costs associated with its Sunrise Wind Project, which will be the largest U.S.
PJM wants a delay in the auction of capacity after an environmentalist's complaint
PJM Interconnection will delay its next annual auction of capacity by six months, while the largest U.S. Grid Operator addresses a complaint made by environmental groups. The biggest U.S. Grid Operator said this in a letter sent on Thursday. PJM’s latest auction, which resulted to payments to power plants within its system that were 833% more than the previous years, raised concerns about a spike in power bills. The Sierra Club, Earthjustice, and other environmental groups filed a complaint with the Federal Energy Regulatory Commission last month, alleging that PJM increased capacity prices in part by excluding certain power stations without justification.
Natgas producer BKV is valued at $1.56 billion in its NYSE debut
BKV shares rose by 3.1% on their New York Stock Exchange debut on Thursday. This gives the U.S. Natural Gas Producer a market cap of $1.56 Billion. Companies looking to list shares have a new window of opportunity as the long-awaited rate-cutting cycle of the U.S. Federal Reserve begins. Several companies are also speeding up their plans in order to avoid the uncertainty that will result from the November presidential elections. BKV shares opened at $18.55 on their debut, as opposed to the $18 price for the initial public offer. The company raised $270m by selling 15 million of its shares at $18 per share, which is below the range it originally advertised between $19 and $21.
Money losing natgas producer BKV revives US IPO
BKV Corp, a natural gas producer in the red, said it plans to raise $315 million via an initial public offer of shares. This comes nearly two years after BKV first filed to sell its shares publicly. BKV said it will offer between $19 to $21 per share. The company aims to achieve a valuation up to $1.77bn in its IPO. Companies waiting to list shares have a new window of opportunity due to the recent increase in natural gas prices in the United States from their more than 30-year low inflation adjusted. This company was one of the U.S. producers who were hard hit by low natural gas prices during the past two years.
EOG will increase activity in the Utica shale in Ohio, says company
Jeff Leitzell, chief operating officer of Houston-based EOG Resources, told the Barclays CEO Energy-Power Conference attendees in New York that the company expects to increase operations in the Utica Shale play in Ohio. Leitzell stated that EOG Resources had doubled its Utica activity year-on-year. The company now operates on 445,000 acres at an average cost of $600 per acre. Leitzell stated that "The Utica has a chance to be a fundamental play." If we have the success we expect, we will invest more money in Utica. EOG also develops its Dorado natural-gas play in the Eagle Ford, in southeast Texas.
Sources say that Sinochem, a Chinese company, plans to withdraw from its US shale joint venture with Exxon.
Sinochem, a Chinese state-backed oil company, plans to sell its 40% stake, worth upwards of $ 2 billion, in a U.S. joint venture with Exxon Mobil, according to people familiar with the situation. Sources claim that Sinochem hired Barclays investment bankers to help it with the sale of its Wolfcamp joint-venture stake. Source: Exxon has the first right of refusal to sell the joint venture, which is majority owned and operated by the company. Sources cautioned, however, that the sale discussions are still in their early stages and a deal is not guaranteed with Exxon, or any other interested parties. This could include rival Asian oil companies.
US utilities to benefit from data center demand in the second half
After striking several supply agreements during the second quarter of 2018, U.S. Electric utilities were bullish about the demand for data centers that are driving the artificial intelligence boom. This reinforced market expectations regarding sales growth throughout the year. Several top utilities, such as American Electric Power, NextEra Energy and others, have signed contracts during the recent quarter, while other companies have expressed interest in technology. Timothy Winter, Gabelli Funds portfolio manager said: "We began to see some clarity regarding data center opportunities.
Brent Shoots Past $80 a Barrel
Oil markets climbed for a sixth day on Tuesday, boosted by a tighter supply and firm demand outlook, but power shortages in China which hit factory output tempered the rally.Brent crude futures gained 67 cents, or 0.8%, to $80.20 a barrel at 1016 GMT, after reaching their highest level since October 2018 at $80.75. Brent gained 1.8% on Monday.U.S. West Texas Intermediate (WTI) crude futures rose 79 cents, or 1%, to $76.24 a barrel, after hitting a session high of $76.67, its highest since early July. It jumped 2% the previous day.Hurricanes Ida and Nicholas, which swept through the U.S.
London's FTSE 100 continues to recover on the back of financials and corporate earnings
London stock markets rose broadly for the second consecutive session on Wednesday. Gains in financial stocks, and positive corporate earnings helped the indexes recover most of their losses earlier this week. The blue-chip FTSE 100 ended the day 1.8% higher, its highest showing in over four months. Meanwhile, the mid-cap FTSE 250 closed 1% up. Gains were made as the global appetite for risk improved following the Bank of Japan's unexpected reluctance to raise rates. This led to a steep fall in the Japanese yen, which caused the market turmoil on Monday. HSBC Bank, Lloyds Banking Group and Barclays are amongst the biggest contributors to the FTSE 100.