2024-09-10 12:07

Sept 10 (Reuters) - TC Energy's (TRP.TO) , opens new tab C$1 billion ($736.92 million) deal to sell a minority stake in its Canadian natural gas pipeline system to a consortium of Indigenous communities has been delayed due to a transaction structuring issue, the company said on Tuesday. The Canadian pipeline operator had said earlier this year it would sell a 5.34% stake in the NGTL system and Foothills assets in western Canada to an Indigenous-owned investment partnership, in a move to reduce its debt and finance new investments. The widely anticipated deal was a key step to achieving the company's C$3 billion asset sale target for 2024. The NGTL system, which is about 24,400 kilometers (15,150 miles) long, connects most of the natural gas production in western Canada to domestic and export markets. TC Energy said on Tuesday it remains focused on a deal and would provide material updates as they become available. ($1 = 1.3570 Canadian dollars) Sign up here. https://www.reuters.com/business/energy/tc-energys-pipeline-stake-sale-delayed-2024-09-10/

2024-09-10 10:39

TSX ends down 0.1% at 23,003.09 Energy falls for seventh straight day Oil settles at lowest since December 2021 Materials group gains 1.4% Sept 10 (Reuters) - Canada's main stock index fell on Tuesday as a drop in oil prices weighed on energy shares, but the move was limited as Wall Street closed higher ahead of a key inflation report. The S&P/TSX composite index (.GSPTSE) , opens new tab ended down 24.06 points, or 0.1%, at 23,003.09. The decline was driven by "the big sell-off in the price of oil," said Colin Cieszynski, chief market strategist at SIA Wealth Management. There are "fears of a slower economy, fears of a reduced demand for energy and we're seeing that show up in the oil price in particular and then that's dragging the stocks down with it," Cieszynski said. U.S. crude oil futures settled at the lowest level since December 2021, falling 4.3% to $65.75 a barrel, as OPEC+ revised down its demand forecast for this year and 2025. The energy sector was down 2.3%, its seventh straight day of declines, with Precision Drilling (PD.TO) , opens new tab falling 4.7% and Canadian Natural Resources (CNQ.TO) , opens new tab ending 3.5% lower. Energy pipeline operator Enbridge (ENB.TO) , opens new tab has pulled employees from several offshore U.S. Gulf of Mexico platforms, the company told customers, as Tropical Storm Francine advanced toward a landfall in Louisiana. The company's shares were down nearly 1%. Alimentation Couche-Tard (ATD.TO) , opens new tab shares also lost ground, falling 1.4%. The U.S. Federal Trade Commission has notified Seven & i (3382.T) , opens new tab of its intention to investigate a potential takeover of the convenience store chain by Couche-Tard over antitrust concerns, a source familiar with the matter said. The focus for many investors continued to be the U.S. inflation report for August, due on Wednesday, which could reinforce expectations the Federal Reserve would begin an interest rate cutting campaign later this month. Technology added 0.8% and the materials group, which includes fertilizer companies and metal mining shares, was up 1.4% as the price of gold rose. Sign up here. https://www.reuters.com/markets/tsx-futures-slip-declining-crude-prices-2024-09-10/

2024-09-10 10:27

DUBAI, Sept 10 (Reuters) - Standard Chartered said on Tuesday it had begun offering digital asset custody services in the United Arab Emirates, with Brevan Howard Digital, the crypto and digital asset division of the British hedge fund, as an inaugural client. The emerging markets focused bank said it launched the business in the country because of its "well-balanced approach to digital asset adoption and financial regulation". "Standard Chartered's global reputation and demonstrated commitment to this space adds a layer of credibility that is meaningful for institutional adoption," Brevan Howard Digital's CEO Gautam Sharma said in a joint statement. The UAE has been working hard to attract some of the world's biggest crypto firms, luring business from Binance, OKX, among others. It has also been trying to develop virtual asset regulation to attract new forms of business as economic competition heats up in the Gulf region. It has also managed to attract big hedge funds including Brevan Howard, which is established its office in Abu Dhabi in February last year, Millennium Management, ExodusPoint Capital Management and BlueCrest. Standard Chartered is among several banks that have been extending their foray into the crypto sector as more institutional investors adopt the asset class. It is a backer of two crypto firms, Zodia Markets and Zodia Custody, which provide clients a broad range of services including custody and trading. Sign up here. https://www.reuters.com/business/finance/standard-chartered-starts-custody-services-digital-assets-uae-2024-09-10/

2024-09-10 10:26

LONDON, Sept 10 (Reuters) - Glencore's (GLEN.L) , opens new tab former head of oil Alex Beard appeared in a London court on Tuesday to face bribery charges relating to the Swiss commodity trader's operations in Africa. Beard will plead not guilty, his lawyer said at London's Westminster Magistrates' Court. The 57-year-old is charged with two counts of conspiracy to make corrupt payments to government officials and officials of state-owned oil companies in Nigeria between 2010 and 2014, and in Cameroon between 2007 and 2014. Beard, who is the most high-profile commodity trader to have been charged in Britain for alleged corruption, joined Glencore in 1995 from BP, the biggest trading desk at that time, and was head of oil from 2007 until 2019, when he retired. He helped Glencore become one of the top three oil trading firms, trading as much as 7% of the world's oil in its heyday. Four other ex-Glencore employees – Andrew Gibson, Paul Hopkirk, Ramon Labiaga and Martin Wakefield – were also charged with making corrupt payments relating to Glencore's operations in Nigeria, Cameroon and Ivory Coast. Gibson and Hopkirk indicated not guilty pleas through their lawyers. Labiaga and Wakefield did not indicate any pleas and were not required to do so. Gibson and Wakefield are further charged with conspiracy to falsify documents between 2007 and 2011. Another ex-Glencore employee, David Perez, has been charged with making corrupt payments and conspiracy to falsify documents. Perez did not indicate any pleas. Prosecutor Alexandra Healy said the alleged offences related to the West Africa desk of Glencore's London office. All six defendants' cases were sent to Southwark Crown Court for a hearing on Oct. 8. Sign up here. https://www.reuters.com/markets/commodities/glencores-ex-head-oil-appears-uk-court-bribery-charges-2024-09-10/

2024-09-10 10:09

Francine forecast to wallop Louisiana with high winds Energy companies evacuate 130 production platforms Storm poised to become major test for US LNG export plants HOUSTON, Sept 10 (Reuters) - Tropical Storm Francine was on track on Tuesday to become a hurricane overnight, the U.S. National Hurricane Center said, prompting Louisiana residents to flee inland and oil and gas companies to shut in Gulf of Mexico production. Francine was developing more slowly than earlier forecast but could still wallop the Louisiana coast on Wednesday with life-threatening winds, drenching rains and an up to 10-foot (3-meter) storm surge. Peak wind intensity was lowered to 90 miles per hour (145 kph), making it a Category 1 hurricane, in the latest National Hurricane Center outlook. The storm was moving off the southern Texas coast and expected to make landfall on Wednesday near Thibodaux in Louisiana. Its path promises a major test for liquefied natural gas (LNG) export plants recently built in the region. Energy companies shut-in 412,070 barrels per day of oil production, about 24% of the U.S. Gulf of Mexico production, and evacuated staff from 130 production platforms, U.S. offshore regulator Bureau of Safety and Environmental Enforcement said on Tuesday. About 494 million cubic feet per day, or 26% of Gulf natural gas production, was offline, according to reports submitted to the offshore regulator. The region is home to about 15% of U.S. oil production and 2% of natural gas output. U.S. natural gas prices rose about 3% on worries about the production shut-ins and potential impact on LNG plants. Global oil demand concerns overshadowed the storm and U.S. crude futures fell more than 4%. Oil refiners and fuel distributors along the Louisiana coast were preparing to weather the storm. Citgo Petroleum said its Lake Charles oil refinery was implementing its hurricane plan. The port of Brownsville near the border with Mexico and other smaller terminals in Texas remained closed on Tuesday, while other ports, including Houston, Galveston, Corpus Christi, Texas City and Freeport, were working with restrictions. Between Texas and Louisiana, ports from Beaumont, to Plaquemines imposed restrictions to vessel traffic, the Coast Guard said. In New Orleans, port officials were preparing to close its terminal and railroad operations, with service to resume on Thursday following damage assessments. Ports in Houma, Morgan City and the Louisiana Offshore Oil Port were closed to navigation, according to the U.S. Coast Guard. Ports in Mississippi and Alabama, including Pascagoula also began storm preparations, but remained open on Tuesday. After landfall, the center of Francine is expected to move into Mississippi on Wednesday night or Thursday. Oil producers Exxon Mobil (XOM.N) , opens new tab, Shell (SHEL.L) , opens new tab and Chevron (CVX.N) , opens new tab removed offshore staff and curtailed production. Pipeline operator Enbridge (ENB.TO) , opens new tab also pulled employees from several U.S. Gulf of Mexico platforms. Louisiana is home to three of the country's seven big operating LNG export plants. New plants - Sempra's (SRE.N) , opens new tab Cameron LNG, Venture Global LNG's Calcasieu Pass LNG and Tellurian's (TELL.A) , opens new tab Driftwood LNG development - are along the path of Francine. Natural gas flowing to the Cameron LNG export plant dropped on Tuesday to 1.3 billion cubic feet per day (bcfd) from about 2.2 bcfd on Monday, LSEG data showed. Sempra did not reply to a request for comment. Freeport LNG, which operates the nation's second-largest export plant for the super-chilled gas, said it had begun storm preparations at its Texas plant without providing details. Sign up here. https://www.reuters.com/world/us/residents-flee-oil-firms-shut-offshore-production-storm-francine-intensifies-2024-09-10/

2024-09-10 10:06

A look at the day ahead in U.S. and global markets from Mike Dolan Markets have recovered their poise this week on a potent mix of U.S. 'soft landing' hopes and interest rate cut speculation and now turn their attention back to U.S. politics ahead of Tuesday's big TV debate. After a week or more juggling 50-50 calls on recession ahead and the size of this month's expected Federal Reserve interest rate cut, speculation now shifts to November's election - which opinion polls and betting markets now also see as a 50-50 call. Tuesday's first televised debate between U.S. Democratic presidential candidate Kamala Harris and Republican challenger Donald Trump effectively restarts the whole campaign after the disastrous performance of President Joe Biden in the previous one eventually saw him withdraw from the race. And for that reason primarily, it's the performance readout that will likely matter most to markets rather than any particular manifesto pledges - and how those optics shape polling and bookmakers' odds over the weeks ahead. While the election stakes are high across a whole series of key domestic and foreign policy issues - most obviously for markets on trade and tariff policies that the President doesn't need the backing of Congress for - there are some questions about how investors interpret respective fiscal proposals. Late last month, credit ratings firm Fitch said the U.S. fiscal profile would likely remain largely unchanged regardless of who wins the election, even as it affirmed a 'AA+' sovereign rating on 'structural strengths' that include high per capita income and financial flexibility. Fitch said it expects most of the tax cuts introduced by Trump in 2017 to be extended under either candidate, impacting revenues and contributing to wider budget deficits. Broadly, it said governments over many years had failed to meaningfully tackle large fiscal deficits, the growing debt burden and looming spending increase associated with an aging population. And on that score on Tuesday, Treasury kicks off another heavy week of coupon sales with a $58 billion auction of 3-year paper - with 10- and 30-year debt under the hammer later in the week. As Wall Street stocks recovered ground on Monday with more than a 1% bounceback in the S&P500 (.SPX) , opens new tab, Treasury yields ticked back higher ahead of the auctions and the 2-to-10-year yield curve hovered just above zero. Markets seem more comfortable with the idea that the Fed will now kick off its easing campaign with a quarter-point cut this month - but with two more by year-end, one of which will be 50 basis points. Whatever the sequencing, the inflation picture continues to improve as we await Wednesday's August consumer price report. Most immediately a renewed oil price plunge over the past month should prove to be a significant depressant to headline inflation rates everywhere - with year-on-year U.S. crude prices now falling at a rate of 23%. U.S. retail gas pump prices have dropped 25 cents a gallon over the past two months - off more than 15% on a year ago. While the gas price remains above pre-pandemic levels, it is, curiously, below where it was 10 years ago. Energy markets are wary of the expected release of OPEC's latest global demand assessment - a darkening picture that likely influenced its decision to postpone next month's output hikes. And China on Tuesday underlined where much of that problem lies as it reported that imports barely grew 0.5% in the year through August - far below forecasts and underscoring severe domestic demand problems. With exports expanding almost 9% over the same period, the trade picture showed how China is once again leaning on exports to flatter economic problems at home. China's mainland stocks (.CSI300) , opens new tab held the line on Tuesday, but remain down 7% for the year to date - underperforming the S&P500 by almost 20% in 2024. Ahead of Tuesday's bell, however, U.S. stock futures were off slightly and the dollar (.DXY) , opens new tab was a touch firmer in line with Treasury yields. The euro remains on the backfoot as the European Central Bank is likely deliver its second rate cut of the year on Thursday. Sterling was a touch higher after surprisingly positive UK jobs numbers and an expected ebbing of wage growth. In company news, tech remained in focus. Although Apple (AAPL.O) , opens new tab on Monday unveiled its long-awaited artificial intelligence-boosted iPhone 16, its shares were down 1.6% overnight as Huawei's tri-fold smartphone was seen to upstage the new iPhone launch. Apple also lost its fight against an order by EU competition regulators to pay 13 billion euros ($14.35 billion) in back taxes to Ireland as part of an EU crackdown against sweetheart deals between EU countries and multinationals. Key developments that should provide more direction to U.S. markets later on Tuesday: * US August NFIB small business survey * Federal Reserve Vice Chair for Supervision Michael Barr speaks on "Basel III Endgame"; Bank of Canada Governor Tiff Macklem speaks in London * German Bundestag discusses 2025 budget, Finance Minister Christian Lindner and Economy Minister Robert Habeck both speak * U.S. Secretary of State Antony Blinken meets British Prime Minister Keir Starmer in London * US corporate earnings: Petco Health and Wellness, Cantaloupe etc * US Treasury sells $58 billion of 3-year notes Sign up here. https://www.reuters.com/markets/us/global-markets-view-usa-2024-09-10/