2025-05-30 21:43
SAO PAULO, May 30 (Reuters) - Wind farm developer Casa dos Ventos has regulatory approval to move ahead with a 300-megawatt project in northeast Brazil where the company has been discussing a major data center investment with the owner of TikTok. Brazil's national power grid operator gave the green light to connect the project at the Pecem port complex in Ceara, Casa dos Ventos told Reuters on Friday. The total investment in infrastructure and equipment for the data centers is expected to reach 50 billion reais ($8.7 billion), the company added. Sign up here. The regulatory approval should speed up talks with major technology companies, including ByteDance, the Chinese parent company of TikTok, a person familiar with the negotiations told Reuters. Reuters first reported last month that the Chinese company was eyeing a major Brazilian data center investment with Casa dos Ventos, which partnered in 2022 with TotalEnergies (TTEF.PA) , opens new tab on its wind power portfolio. A technical reassessment by the national power grid operator and Brazil's Ministry of Mines and Energy cleared the way to authorize the project after an initial rejection threatened to make it unviable. Casa dos Ventos said it now plans to start construction in the second half of this year and begin operations in the second semester of 2027. To address concerns about water use that have confronted data center projects in some regions, the company said its project will use closed loop cooling systems, significantly reducing water demand. Casa dos Ventos estimates the water usage for the first phase of the project will be equivalent to about 0.045% of the residential demand in the city of Caucaia, which neighbors the port complex. ($1 = 5.7180 reais) https://www.reuters.com/business/energy/brazil-power-co-gets-ok-data-center-project-with-tiktok-interest-2025-05-30/
2025-05-30 21:29
SAO PAULO, May 30 (Reuters) - Moody's Ratings on Friday changed its outlook on Brazil to stable from positive while affirming its Ba1 ratings, citing "slower-than-expected progress in addressing spending rigidity and building credibility around fiscal policy." In its report, Moody's, which had upgraded Brazil in October to the Ba1 sovereign rating - one step from investment grade - also attributed the outlook revision to "a pronounced deterioration in debt affordability." Sign up here. Moody's said that the challenges offset upside investment and GDP growth potential, as well as economic reforms that "are broadly supportive of Brazil's credit quality." In a statement after the revision, the Brazilian Finance Ministry reaffirmed its commitment to improving fiscal results and continuing the process of structural reforms. The rating from Moody's is Brazil's highest from the top three credit agencies, with S&P and Fitch considering the nation two notches away from investment grade. https://www.reuters.com/world/americas/moodys-changes-brazils-outlook-stable-positive-affirms-ba1-ratings-2025-05-30/
2025-05-30 20:49
May 30 (Reuters) - A runway at Newark Liberty International Airport will reopen on Monday nearly two weeks ahead of schedule following several chaotic weeks of equipment outages, runway construction and air traffic control staffing shortages that caused flight cancellations, diversions and delays, U.S. Transportation Secretary Sean Duffy said. Newark Liberty, one of the main airports serving New York City, is about 9 miles (14.5 km) from Manhattan. Sign up here. Duffy said Friday the runway will reopen nearly two weeks ahead of the June 15 target. Last week, the Federal Aviation Administration ordered a reduction in flights to a maximum of 28 arrivals per hour and 28 departures per hour until runway construction is completed. After that, the maximum arrival and departure rates will rise to 34 per hour until October 25. Operations at Newark have improved significantly after the federal government imposed flight cuts following a series of major disruptions, Duffy said this week. Under normal circumstances, Newark could handle 77 total flights per hour. "If you book, I think you're going to fly in Newark -- you're not going to see what you saw a couple weeks ago," Duffy said. Newark is a major hub for United Airlines (UAL.O) , opens new tab, which operates nearly 70% of the airport's flights. United has sharply cut flights at the airport. The FAA last year relocated control of Newark's airspace to Philadelphia to address staffing and congested New York City-area traffic. The facility in Philadelphia that oversees Newark airspace has faced numerous technology issues. Newark in recent weeks had often suffered delays of five or more hours and dozens of daily canceled or delayed flights. Nationwide, the FAA is about 3,500 air traffic controllers below targeted staffing levels. The area overseeing Newark has a targeted staffing level of 38 certified controllers, but currently has just 22 in place, six of whom are on stress or medical leave now, Duffy said. https://www.reuters.com/business/media-telecom/newark-airport-runway-reopen-monday-after-construction-2025-05-30/
2025-05-30 20:45
Thousands flee northern Manitoba forest fires Aid coming in from US, other Canadian provinces Manitoba, Saskatchewan declare provincial emergencies over fires WINNIPEG, Manitoba, May 30 (Reuters) - As thousands of people fled from areas overwhelmed by wildfires in remote northern Manitoba on Friday, Winnipeg scrambled to find housing and care for the sudden wave of evacuees. The outbreak of fires across much of western Canada's north is due to unusually hot and dry conditions and flames are consuming hundreds of thousands of hectares of tinder-dry forest and bushland. Sign up here. "It's hard on everybody," said school maintenance technician Richard Korte, who had fled to Winnipeg from Flin Flon, a regional centre of 5,000 people on the Saskatchewan-Manitoba border, and wondered where his family would sleep that night. The neighbouring western provinces of Saskatchewan and Manitoba have both declared states of emergency to deal with the spreading fires, which have so far largely hit remote and sparsely-populated areas. Evacuee Chris Schultz was sitting in the cab of his pickup truck with his dog, Stella, and hoped to get a glimpse of friends and relatives arriving at a temporary emergency shelter inside a hockey arena in Winnipeg. Inside the center, his friend Korte had been trying to arrange housing for his family, including his disabled son who needs special supports and cannot stay in an arena. People from northern Indigenous communities are fleeing as fires approach and their few routes to the south are cut off. Some communities have airlifted their most vulnerable people out, but smoke has closed at least one airport. Manitoba Premier Wab Kinew said about 17,000 Manitobans are fleeing the fires as the weather remains hot and dry. "We need to stay calm," said Kinew in a press conference on Friday afternoon. He praised the help coming from Quebec, other provinces and the U.S., which is sending 125 firefighting staff to Manitoba. "We cannot thank other jurisdictions enough." Flin Flon mayor George Fontaine said on Friday morning that a weather report indicated it was likely that winds would blow the raging fire into the town. "It could be very catastrophic if that happens," Fontaine said on CBC News Network. There are 23 active fires in Manitoba and 14 in Saskatchewan, according to provincial data. The oil-producing province of Alberta also has 51 active fires, and oil companies have been evacuating workers this week. Last year, wildfires devastated Jasper, a tourist town in the Canadian Rockies. In his truck, Schultz said he might break out crying. But he hoped dog Stella would put a smile on the face of some of his fellow evacuees. (Refiles to remove extra words in first paragraph) https://www.reuters.com/sustainability/climate-energy/northern-manitoba-evacuees-stream-south-escape-raging-wildfires-2025-05-30/
2025-05-30 20:40
WASHINGTON, May 30 (Reuters) - The U.S. on Friday said Holtec's planned restart of the Palisades nuclear power plant in Michigan would not harm the environment, a needed step in its plan to become the first such plant to return from permanent shutdown. The Nuclear Regulatory Commission conducted the environmental review of the Palisades reactor restart with the Department of Energy's Loan Programs Office. Sign up here. Opponents of the restart had expressed concerns that steam generator tubes at Palisades are degraded because standard maintenance procedures were not followed when the plant went into shutdown. Holtec says it is plugging the tubes. The LPO, which supports nuclear projects that are unable to get bank loans, closed a $1.52 billion loan guarantee for the Palisades restart in September 2024. President Donald Trump's administration provided the third disbursement of that financing, nearly $47 million, in April. Power company Entergy (ETR.N) , opens new tab shut the 800-megawatt Palisades reactor in 2022, two weeks ahead of schedule over a glitch with a control rod. It had generated electricity for more than 50 years. Holtec bought the plant to decommission it, but now hopes to reopen it. U.S. power demand has been rising for the first time in two decades on the boom in data centers and artificial intelligence. Holtec says Palisades could reopen as soon as October. But it needs additional permits from the NRC. "Pending all federal reviews and approvals, our restart project is on track and on budget to bring Palisades back online by the fourth quarter of the year," said Holtec spokesperson Nick Culp. Alan Blind, engineering director at the plant from 2006 to 2013, said in an editorial this month that if steam generator problems lead to a shutdown, it would "erode public confidence, damage investor trust, and raise serious safety concerns." The NRC is reviewing Holtec's proposed repairs, said Scott Burnell, an agency spokesperson. "Holtec must demonstrate the Palisades steam generators will fulfill their safety functions before the plant restarts," Burnell said. https://www.reuters.com/sustainability/us-approves-environmental-review-michigan-nuclear-plant-restart-2025-05-30/
2025-05-30 20:35
ORLANDO, Florida, May 30 (Reuters) - - TRADING DAY Making sense of the forces driving global markets Sign up here. By Jamie McGeever, Markets Columnist Bonds bounce back Global trade uncertainty cranked up several notches this week amid a flurry of court rulings around U.S. tariffs and President Donald Trump accusing China of violating a deal with Washington, ensuring world markets ended the month on a cautious footing. A clutch of economic indicators on Friday that suggested U.S. growth may be slowing more than expected also added to the gloom, making for a turbulent session on Wall Street. Month-end rebalancing flows were expected to be bullish for bonds, and that's how it appears to have turned out. After four consecutive weeks of declines, Treasuries' prices rebounded this week, particularly at the longer end, thereby bull-flattening the yield curve. The benchmark 10-year Treasury yield on Friday ended at a three-week closing low around 4.40%, partly capped by figures that showed U.S. PCE inflation last month cooled to 2.1% - to all intents and purposes back at the Fed's target. It's worth noting, however, that despite the renewed tariff chaos the S&P 500 and Nasdaq this week climbed to within a few percentage points of February's record highs. It won't take that much of a push to test them, although an impetus will be needed. What might provide that spark? The latest twists and turns on the Trump administration's tariffs, whether that's from the courts or the president's social media posts, appear to be the most likely trigger of major market moves. The U.S. Senate will start debating Trump's tax-and-spending bill - a "big, beautiful bill" as he has dubbed it - that, in its current form, is set to add nearly $4 trillion to the federal debt over the next decade. One element of the bill has unnerved investors in the last 24 hours, a tax targeting foreign investors that could potentially weigh on demand for U.S. Treasuries and the dollar. Deutsche Bank's George Saravelos warned that it could "turn the trade war into a capital war." The U.S. bond market is nervy, despite this week's rebound. The broad thrust from Fed officials' comments this week is policymakers remain in a 'wait and see' mode regarding the economic impact of the tariff uncertainty. Traders don't expect the Fed to cut rates again until September. Meanwhile, another expected interest rate cut from the European Central Bank on Thursday and May's U.S. employment report on Friday are among the highlights on next week's global calendar. I'd love to hear from you, so please reach out to me with comments at [email protected] , opens new tab. You can also follow me at @ReutersJamie and @reutersjamie.bsky.social. This Week's Key Market Moves Chart of the Week I'm feeling generous, so two charts for you this week. The first is from Simon French at Panmure Liberum. It shows that the gap between the UK 10-year bond yield and the aggregate yield of its G7 peers that exploded around the 'Trussonomics' debacle in late 2022 has not narrowed. More than two and a half years later, it is wider than ever. Investors are clearly demanding a massive premium for lending to the UK government over other G7 nations, but why? Possible explanations include: UK inflation is seen 'higher for longer', greater risk of fiscal slippage, policy credibility worries. The second chart might be gaining some attention - and raising hackles - in the White House. It shows the broadest measure of China's yuan exchange rate which, after a lengthy period of stability, has slumped to its weakest level since 2012. But unlike previous bouts of yuan weakness like the mid-2000s, this is not being driven by FX market intervention from Beijing, says OMFIF's Mark Sobel. In other words, less currency 'manipulation' and more capital outflows due to the huge challenges China's economy is facing. Either way, it will play into the narrative from Washington that global trade and currency imbalances must be fixed. But trade talks between the U.S. and China appear to have stalled, putting investors back on the defensive. Here are some of the best things I read this week: What could move markets on Monday? Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles , opens new tab, is committed to integrity, independence, and freedom from bias. Trading Day is also sent by email every weekday morning. Think your friend or colleague should know about us? Forward this newsletter to them. They can also sign up here. https://www.reuters.com/business/global-markets-trading-day-2025-05-30/
