2025-07-22 23:46

July 23 (Reuters) - Australia's top fuel retailer Ampol Ltd (ALD.AX) , opens new tab on Wednesday forecast weaker half-year earnings as sea-freight conditions impacted its supply chain, and reported a 1.1% drop in second-quarter refining margins at its Lytton refinery. The company expects first-half earnings before interest and tax on a replacement cost basis (RCOP EBIT) to be A$400 million ($262.04 million), compared with A$502.1 million a year earlier. Sign up here. The second-quarter refining margin at its Lytton refinery in Queensland, one of the company's key assets, decreased to $8.71 per barrel in the second quarter, down from $8.81 last year. Over the year, operational disruptions such as planned maintenance and loss of production days due to Cyclone Alfred, coupled with weak refining margins in Singapore, have weighed on refining margins and the output levels of the Queensland refinery. However, the refinery margin increased from the prior quarter's $6.07 per barrel, due to improved product crack - the difference between the price of crude oil and the prices of the refined petroleum products - in the later part of the year. The Sydney-based firm reported second-quarter total sales volume of 6,304 million liters (ML), down 4.7% from a year earlier. Its Lytton refinery output for the second quarter was 1,406 ML, compared to 1,420 ML logged a year earlier. The company is slated to report its half-year financial results on August 18. ($1 = 1.5265 Australian dollars) https://www.reuters.com/business/energy/ampol-forecasts-lower-half-year-earnings-supply-chain-impacts-2025-07-22/

2025-07-22 23:38

MEXICO CITY, July 22 (Reuters) - Mexican lender Banorte's (GFNORTEO.MX) , opens new tab net profit ticked up 4% in the second quarter, lifted by a double-digit jump in its loan book, it reported on Tuesday. Net profit for the period was 14.62 billion pesos ($779.09 million), but below the 15.01-billion-peso estimate from analysts polled by LSEG. Sign up here. Net interest income, the difference between what banks earn on loans and dole out in deposits, grew 12% from the year-ago quarter, which Banorte attributed to a more diversified portfolio and lower funding costs. That rise helped offset an 887-million-peso hit from foreign exchange impacts, Banorte, one of Mexico's largest banks, said. The growth comes during an interest-rate-cutting cycle from Mexico's central bank, which in June trimmed the benchmark rate to its lowest level in nearly three years. Lower rates typically pressure rate margins. Banorte's total portfolio, minus government loans, posted 13% growth year-on-year. The consumer segment posted the strongest performance, with auto loans climbing 30% and credit card loans rising 18%. Corporate and commercial loans also grew in the double digits, though government lending fell as loans were paid back early. Return on equity, a key measure of profitability, ticked up to 23.6% from 23.3% a year earlier, while the bank's non-performing loan ratio held steady at 1.1%. Banorte maintained its full-year guidance, projecting net income between 59.6 billion and 62.1 billion pesos and loan growth of 8% to 11%. "Given Banorte's track record, we translate (that) into confidence on the provided ranges, particularly in loan growth," analysts at Citi wrote in a note, saying it was a key concern among investors. MONEY LAUNDERING JITTERS Banorte's CEO, Marcos Ramirez, told journalists that the lender was wrapping up its relationships with firms which in June had been targeted by the U.S. Treasury for alleged money laundering concerns. The sanctions applied to three financial institutions -- CIBanco, Intercam Banco and Vector Casa de Bolsa -- and while the groups are relatively small, they have sent shockwaves through Mexico's banking system. Ramirez said Banorte had doubled down on its own anti-money laundering standards, which it had boosted earlier in the year after calls to do so from the U.S. Ramirez said as head of Mexico's banking association, the group was unaware of any investigations into other groups, which the market has widely speculated. ($1 = 18.7654 pesos at end-June) https://www.reuters.com/business/finance/mexicos-banorte-posts-4-profit-bump-loan-book-grows-2025-07-22/

2025-07-22 23:14

FRANKFURT, July 23 (Reuters) - Central banks risk being blindsided by climate-driven shocks to global labour markets unless they overhaul their approach to monetary policy, a report published on Wednesday by the London School of Economics warned. The study found that, even under relatively optimistic scenarios in which global warming is limited to 1.5-2 degrees, climate change would lower labour productivity, particularly in agriculture, construction and other sectors exposed to heat. Sign up here. With up to 1.2 billion workers in 182 countries vulnerable to climate disruption, the report by the Centre for Economic Transition Expertise (CETEx) urged monetary authorities to pay greater attention to environmental risks - from natural disasters to the consequences of the green transition. "Our research shows that central banks should seek to integrate environmental employment risks into their policies and operations," said Joe Feyertag, senior policy fellow at CETEx and author of the report. The European Central Bank and the Bank of England have highlighted the dangers stemming from climate change and its potential impact on inflation, growth and banks' health. But the U.S. Federal Reserve, in many ways the world's most influential central bank, withdrew from a climate-focused network of authorities earlier this year, raising questions about the depth of its engagement on these issues. The report found rich countries were most at risk from the shift away from pollution-intensive industries. By contrast, poorer regions in Africa, Asia and Latin America faced a bigger threat from physical risk such as floods and droughts. These divergent pressures, combined with demographic shifts and tighter immigration policies, could further strain labour markets in developed countries while loosening them in emerging ones, the study said. Feyertag also warned that labour market disruptions could amplify social inequalities, especially in countries with rigid labour markets Inflation tends to be higher in a tighter labour market, all other factors being equal. Low productivity can also contribute to high inflation. Feyertag reviewed 114 central bank mandates and found just 15 of them, including the Bank of England, explicitly reference employment as a main or secondary objective. The Fed and Reserve Bank of Australia include jobs as a core policy goal. This could give some of these banks cover to take bolder action in order to cushion the labour-market impact of climate change. "If their mandate allows, (central banks) could even take more active steps to stimulate demand for workers from low-carbon or climate-resilient employment opportunities and thereby smoothen this path," Feyertag said. https://www.reuters.com/sustainability/cop/central-banks-told-prepare-climate-shock-labour-market-2025-07-22/

2025-07-22 23:13

PJM auction prices rise due to data center demand, supply shortfall Shares of power companies rise on auction results Environmental groups criticize PJM for slow renewable energy integration July 22 (Reuters) - Prices out of the biggest U.S. power auction, held by grid operator PJM Interconnection, cleared at $329.17 a megawatt-day, roughly 22% higher than last year's record-high levels as electricity demand continues to outstrip supply, according to results released by the organization on Tuesday. A recent surge in U.S. power consumption driven by Big Tech's data center demand has butted up against roughly a decade of shrinking power supplies in PJM, North America's largest power grid operator, leading to a supply shortfall that has driven up prices in the capacity auction. Sign up here. PJM's capacity auction determines what power plant owners in the grid network, which covers one in five Americans, will be paid to guarantee that they pump out electricity during times of extreme demand to help avoid blackouts. Shares of major power-producing companies that receive capacity payments rose on the auction results. Talen Energy shares were up over 9%, Constellation Energy shares rose over 5%, and NRG Energy (NRG.N) , opens new tab climbed over 6% in trading after the bell. The payments are a sign of the energy supply and demand balance in PJM, with higher prices typically acting as an incentive for developers to build more power plants. PJM's territory covers 13 states and the District of Columbia, as well as the biggest concentration of data centers in the world, including Virginia's "Data Center Alley." The latest auction, which covers the year beginning next summer, is showing signs of a continued supply crunch. PJM attracted 2,669 megawatts of additional power supplies, which will be added through upgrading existing power plants and adding new ones, marking the first time in the last four auctions that new generation was added. The additions, however, represent only about half the amount of new power demand PJM expects to see over the period the auction covers. While prices overall increased from last year, two zones within PJM - covered by Baltimore Gas and Electric Company and Dominion Energy (D.N) , opens new tab - saw price decreases. "Rapid electricity demand growth continues to outpace the rate of new generation," Evercore ISI analyst Nicholas Amicucci said in a note of the higher prices. BACKLASH Year-ago auction prices shot up by more than 800%, rising to $269.92 per megawatt-day from the previous year as data center demand crept up. Prices from that auction began to take effect last month, while the most recent results will impact bills beginning next summer. Those high payment prices, which are ultimately paid for by the public, drew a backlash from state consumer advocates, politicians and environmental groups, leading to several changes at PJM. PJM says it expects power bills for homes and businesses will rise only 1.5% to 5% year-over-year as a result of the latest auction results. Prices in BGE and Dominion may decline, it said. The types of power-generating capacity cleared through the auction included 45% natural gas, 21% nuclear, 22% coal, 4% hydro, 3% wind and 1% solar. Environmental groups, which successfully sued over the last PJM capacity results, said PJM has failed to quickly connect new carbon-free renewable power like wind and solar. “PJM has failed our communities through its refusal to adopt substantive reforms, completely at odds with its mission of providing reliable energy at the lowest cost to its customers,” said Jessi Eidbo, Sierra Club senior adviser. PJM said it has approved the connection of 46,000 MW of power plants, many of them solar, but those projects have not yet been built for reasons outside the grid operator's control. https://www.reuters.com/business/energy/biggest-us-power-grid-auction-prices-rise-by-22-new-heights-2025-07-22/

2025-07-22 23:04

America Movil's earnings surpass analysts' forecasts Q2 swings to $1.19 billion profit after loss a year ago Group points to FX gains, more post-paid mobile users US tariffs helped weaken dollar versus many Latam currencies MEXICO CITY, July 22 (Reuters) - Mexican telecommunications giant America Movil (AMXB.MX) , opens new tab reported on Tuesday a swing to profit in the second quarter of 2025, surpassing analysts' forecasts and fueled by foreign exchange gains from currencies across Latin America. "Our integral financing costs decreased significantly thanks to which we were able to log 11 billion pesos in FX gains," America Movil said in a statement. Sign up here. Net profit for the group, controlled by the family of Mexican billionaire Carlos Slim, hit 22.28 billion pesos ($1.19 billion) in the three months through June, rebounding from a 1.09 billion peso loss in the same quarter a year earlier. Analysts polled by LSEG had expected a $1.13 billion profit. Revenues for the firm, which operates across Latin America and Europe, rose 14% to 233.79 billion pesos, or $12.46 billion, also above analysts' $12.00 billion forecast. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 11% to 92.41 billion pesos. America Movil said its revenue was also inflated by the Mexican peso's depreciation against most currencies from other countries where the group operates. "The second quarter was characterized by significant uncertainty associated with the tariffs that the U.S. government seeks to impose on merchandise imports," it added, noting the U.S. dollar had as a result weakened against most currencies in its operating region. America Movil said its mobile services growth was driven by its post-paid segment, which added 2.9 million customers in the three months through June, including 1.4 million from Brazil. Its pre-paid platform, however, logged 1.1 million net disconnections. The firm also recorded 462,000 new broadband connections, half of which were in America Movil's home market of Mexico. ($1 = 18.7654 pesos at end-June) https://www.reuters.com/business/media-telecom/mexican-telecom-giant-america-movil-swings-profit-foreign-exchange-gains-2025-07-22/

2025-07-22 23:03

LONDON, July 23 (Reuters) - Pay settlements by British private-sector employers held at 3% in the three months to June, representing a pay cut in inflation-adjusted terms for many workers, according to a survey published on Wednesday. With the Bank of England watching for signs of weakening inflation pressure in the economy, the figures from wage data firm Brightmine represented the seventh monthly report in a row to show no change in private-sector pay deals. Sign up here. A year ago private sector settlements were running at 4.8%. "After a period of historically high settlements in response to inflation, we’re now seeing the return of employer pay restraint," Sheila Attwood, HR insights and data lead at Brightmine, said. "While 3% is consistent, it's also stagnant, and real-terms pay erosion is starting to reappear for many, meaning many workers are actually worse off this year compared to inflation." Britain's headline consumer price inflation rate rose to 3.6% in the 12 months to June, its highest in more than a year. However, a string of reports have suggested a weakening of the labour market. Brightmine's figures showed public sector pay settlements running at 4.3% and the threat of a strike by doctors showed that Prime Minister Keir Starmer's government remained vulnerable to public worker unions, Attwood said. "One year in, Labour faces growing pressure to balance fiscal restraint with rising pay demands across critical services — and that tension is only set to intensify," she said. Brightmine studied 195 pay settlements in the three months to June 30 covering more than 2.5 million employees. https://www.reuters.com/sustainability/sustainable-finance-reporting/uk-private-sector-pay-settlements-stagnate-3-brightmine-says-2025-07-22/