2025-07-24 23:29
SINGAPORE, July 24 (Reuters) - Increasing adoption of renewable energy in the Philippines could push average annual spot power prices as much as 24% lower by 2029, its power market operator said on Thursday. Spot power prices in the Philippines have fallen to a post-pandemic low of 4.14 Philippine pesos ($0.0731) per kilowatt-hour (kWh) in the first half of 2025, data from the Independent Electricity Market Operator of the Philippines (IEMOP) showed. Sign up here. Increased output from cheaper renewable generators have helped displace higher-priced plants this year, the IEMOP said, estimating planned green energy capacity additions to slash prices by 0.90–1.32 pesos per kWh by 2029. Spot electricity prices averaged 5.58 pesos/kWh last year. Natural gas-fired power plants - which can quickly adjust generation to offset renewable supply volatility - also output this year, IEMOP said, helping bring spot prices down. The Philippines, which has the most coal-dependent grid in the region, is on track for an annual decline in coal-fired electricity output for the first time since 2008 due to rising liquefied natural gas-fired power generation. Lower prices on the spot power market don't necessarily translate into reduced electricity tariffs for Philippine residents, who pay the second highest electricity tariffs in southeast Asia behind Singapore. The country's top power retailer Manila Electric Co (MERALCO) (MER.PS) , opens new tab increased tariffs this month despite lower spot prices, citing higher charges from power generators with whom it has expensive supply deals. However, most retailers have increased buying on the spot market, as they seek to cut costs by reducing dependence on pricey long-term supplies. The share of spot market purchases rose to 21% of overall supply in the 24 months ended June, compared with 12% in the preceding two years, an analysis of IEMOP data showed. ($1 = 56.6450 Philippine pesos) https://www.reuters.com/sustainability/climate-energy/philippines-rising-renewables-use-could-push-power-prices-24-lower-by-2029-2025-07-24/
2025-07-24 23:20
BRASILIA, July 24 (Reuters) - Brazilian Vice President Geraldo Alckmin said on Thursday that he had reiterated his country's willingness to negotiate proposed U.S. tariffs on imports from Latin America's No. 1 economy during a conversation on Saturday with U.S. Commerce Secretary Howard Lutnick. Alckmin said he and Lutnick had a "good" conversation last week that lasted about an hour. Sign up here. The U.S. has announced 50% tariffs on Brazilian imports starting August 1, a measure U.S. President Donald Trump has tied to judicial measures against former president and ideological ally Jair Bolsonaro, who has been accused of plotting a coup. Brazilian officials have been holding discussions with local companies to evaluate the potential impacts of the tariffs, while also preparing measures to mitigate those effects and studying potential countermeasures. But Brazilian authorities have said they have been struggling to contact high officials of the U.S. government for direct negotiation. "The conversation (with Lutnick) was fruitful," Alckmin said, noting the specifics of the discussions should be kept confidential. "We didn't create this problem, but we want to resolve it," the Brazilian VP added. The White House did not immediately reply to a request for comment. https://www.reuters.com/world/americas/brazil-vp-hails-good-fruitful-conversation-with-lutnick-tariffs-2025-07-24/
2025-07-24 23:04
LONDON, July 25 (Reuters) - British consumers remained in a cautious mood this month ahead of possible tax increases later this year and added to their savings, according to a survey published on Friday. The consumer confidence index from market research firm GfK dipped to -19 in July from a six-month high of -18 in June. Sign up here. Economists polled by Reuters had mostly expected a reading of -20. "The data suggests that some people may be sensing stormy conditions ahead," Neil Bellamy, consumer insights director at GfK, said. "With speculation growing over possible tax rises in the Autumn budget, and price pressure contributing not just to higher inflation already but also to the likelihood of worse inflation to come, the news is worrying." Finance minister Rachel Reeves is expected to raise taxes for a second year in a row in her next annual budget plan after Prime Minister Keir Starmer was forced into u-turns on plans to save billions of pounds on welfare spending. GfK's savings index, which is not part of its headline confidence gauge, jumped seven points to +34, its highest level since November 2007, shortly before the global financial crisis deepened. Official retail sales data for June, due at 0600 GMT, are expected to show a rise in sales volumes after a sharp fall in May, according to the economists polled by Reuters. https://www.reuters.com/world/uk/uk-consumers-save-more-they-brace-tougher-times-gfk-says-2025-07-24/
2025-07-24 23:00
Steel, coal rise on expectations of Beijing's overcapacity crackdown Solar sector sees 11% rise in photovoltaic industry index Supply-side reforms will be harder than previous attempts BEIJING/HONG KONG, July 24 (Reuters) - Commodity prices from steel to polysilicon have surged this month as Chinese investors bet Beijing is finally serious about addressing overcapacity across the world's second-largest economy. Prices for nine industrial commodities including coal, steel, polysilicon, a building block for solar panels, alumina and lithium carbonate have climbed by 10% to 68% this month while share prices in steelmakers, solar panel manufacturers and clean energy companies have outpaced the benchmark CSI 300 Index. Sign up here. The moves coincide with Beijing's call on July 1 to tackle "disorderly price competition," or overcapacity, and an acknowledgement it intends to deal with a persistent problem fuelling deflation at home and trade barriers abroad. Since then, state media has amplified that message with warnings against involution, a now-popular reference to competition so fierce it becomes self-destructive. "I think that addressed a big concern for investors, which is the profit margin squeeze on some of the very promising sectors," said Tai Hui, Asia Pacific chief market strategist at JPMorgan Asset Management. Champions of the old economy including steel and coal and newer industries such as solar panels and electric vehicles are grappling with overcapacity and falling prices, which had previously prompted many warnings but little action. This month, some of the reactions from ministries, regulators and local governments suggest Beijing's signal is being received. Two days after a top-level policy meeting on July 1 called for action, the industry ministry pledged to curb price wars in the solar sector. China's photovoltaic industry index is up about 11% this month. (.CSI931151) , opens new tab Polysilicon prices are up 68% after local media reported that the two biggest producers were preparing to buy up smaller rivals and consolidate the sector. Last week, a lithium miner in northwest China was temporarily shut for non-compliant mining, leading speculators to bet that more closures could follow. This week, prices for coking coal used to make steel rose to their daily limit for three consecutive sessions after the National Energy Administration ordered inspections at mines to check for excess production. To be sure, Beijing has pushed supply-side reforms before, most recently about a decade ago to cut production in the cement, steel, glass and coal industries. However, the task is more difficult this time due to higher levels of private ownership in many of these industries, misaligned incentives at the local and national levels, and limited options for other sectors to absorb lost jobs. It's unclear how far authorities are determined to go in curbing production and which other sectors they may target. China's leadership is sending a clear and positive signal about their commitment to address overcapacity, but progress is likely to be much slower this time around and it could take a year or two to see improvement in company profits, said Laura Wang, Chief China Equity Strategist for Morgan Stanley based in Hong Kong. "In the next three to six months, we are relatively conservative in terms of how much actual capacity shutdown you would be able to see," Wang said. https://www.reuters.com/world/china/markets-bet-beijing-is-getting-serious-about-chinas-overcapacity-2025-07-24/
2025-07-24 22:49
HOUSTON, July 24 (Reuters) - Chevron (CVX.N) , opens new tab leaders told Hess employees to stay focused on safe operations and that they will hear next week if they will continue to have jobs following the oil producer's acquisition, according to two Hess employees who spoke with Reuters. Chevron, the second-largest U.S. oil producer, closed its $55 billion acquisition of Hess on Friday after prevailing in a landmark legal fight against Exxon Mobil(XOM.N) , opens new tab that delayed the closing by over a year. Sign up here. The deal was critical to Chevron CEO Mike Wirth's strategy to improve the business as it sought to cut costs and faced investor concerns about future growth prospects. The company will lay off 575 Hess employees in Houston effective September 26, according to a notice filed with the Texas Workforce Commission, or about 32% of staff based on Hess' headcount at the end of last year. During town hall meetings at Hess' Houston office on Tuesday, Chevron representatives presented a slide that showed safety incidents have risen during volatile periods historically, cautioning them to continue prioritizing safety, according to the two employees, who declined to be named to discuss an internal meeting. Hess staff were told they will be notified next week if they have a full-time position with the company moving forward or a short-term role to help with the transition. "These are difficult decisions which we do not make lightly," a Chevron spokesperson said, adding the company will offer severance and other support. The emphasis on safety comes after Wirth warned Chevron employees earlier this year that the company saw an increase in close calls that could have resulted in serious injuries or fatalities. Chevron and Hess staff were asked not to contact each other until the integration is complete, according to the two Hess employees and an internal Chevron message that Reuters reviewed. "We need them to focus on safe operations and on navigating the complex changes that result from this merger," said the internal Chevron message. https://www.reuters.com/business/energy/chevron-tells-hess-staff-focus-safety-they-await-job-updates-2025-07-24/
2025-07-24 22:49
Becle's stock up 7% after 300% profit surge Profits rise despite shrinking demand abroad Executives point to signs of recovery Trade stable amid U.S. tariff threats MEXICO CITY, July 24 (Reuters) - Shares in Becle (CUERVO.MX) , opens new tab, the world's largest tequila producer, surged over 7% on Thursday after it reported a quadrupling in its second-quarter profit despite shrinking demand, and as executives indicated signs of recovery in the company's main markets. Becle, which makes the bulk of its income from Jose Cuervo family tequilas as well as a range of mezcals, vodkas, gins and whiskeys, saw close to 900,000 shares change hands the day after it reported results, which surpassed analysts' forecasts. Sign up here. Analysts responded positively to better-than-expected profit margins as the company benefited from a weaker peso, which boosted its peso-denominated U.S. sales, lower input costs and a long-standing strategy to position itself in more upmarket brands. Becle's margin on earnings before interest, taxes, depreciation and amortization jumped to 23.4% from 20.7% a year ago, even as net sales dipped 6% as the Mexican distiller shipped less volumes in all its foreign markets. "For the longer term, we wonder if the 25% EBITDA margins of yesteryear are a desert mirage or not," analysts at Scotiabank said in a note, pointing out that industry data showed a fast-paced worldwide plunge in thirst for spirits, notably in the United States where trade association numbers "tell a dire story." Analysts have attributed slowing demand to de-stocking following pandemic stockpiling, customers tightening wallets amid higher costs, a shift to pre-mixed canned options and other trends such as legal cannabis and health concerns. Becle, which also sells canned cocktails and non-alcoholic drinks, remains "resilient amid industry plunge," Scotiabank said, noting the company was selling off aging spirits it distilled when prices for agave - the spiked plant whose kernels are used to make tequila and smokier mezcal - were higher. 'ENCOURAGING EARLY SIGNS' Speaking in a call with analysts, CEO Juan Domingo Beckmann said Becle would focus on speeding U.S. growth in the second half of 2025. Becle makes some 60% of its net sales in the U.S. and Canada, and 25% in Mexico. "Encouraging early signs of recovery in key markets, alongside sustained demand for high-quality authentic brands, support a more constructive outlook ahead," Beckmann said. Speaking on the latest U.S. tariff threats, Becle's U.S. and Canada managing director, Mauricio Vergara, said trade remained stable under the existing frameworks and "to date, no significant material regulatory changes have occurred." Vergara said he still expected "near-term volatility to persist" as the industry adjusts to ongoing challenges. U.S. Commerce Secretary Howard Lutnick on Sunday signaled that the latest tariff threats should exempt goods covered by the North American free trade pact - such as tequila. Products named tequila or mezcal are protected by origin, like French Champagne, and must be made in Mexico. The on-and-off tariff threats have hit small-scale distillers hardest, as potential tariff hikes in a key market threaten long-term hiring and re-stocking plans. Agave plants take up to 10 years to harvest and higher-end, deeper-flavored aged tequilas can spend years in the barrel. Though tariff threats battered Becle's stock earlier in 2025, it ended Thursday up 0.55% from January. ($1 = 18.5733 Mexican pesos) https://www.reuters.com/world/americas/becles-stock-surges-after-worlds-top-tequila-maker-profit-jumps-2025-07-24/
