2024-08-28 21:00

LOS ANGELES, Aug 28 (Reuters) - The Alette Maersk was the first container vessel powered by low-carbon methanol fuel to cross the Pacific Ocean - a milestone in the shipping industry's effort to reduce its climate impact. But when the 1,148-foot (350-meter) vessel arrived at the Port of Los Angeles from China last week, there was nowhere in the U.S. to buy more of the green fuel, forcing it to rely heavily on petroleum-based maritime fuel for the return trip. At a day-long ship naming event on Tuesday, A.P. Moller-Maersk representatives said the industry that accounts for close to 3% of global greenhouse gases needs more and cheaper green fuel if it is to decarbonize at the pace scientists and world governments say is necessary to fight climate change. "We're on a clock," said Maersk CEO Vincent Clerc. Maersk (MAERSKb.CO) , opens new tab aims to achieve net zero greenhouse gas emissions in 2040 and has emerged as a leader in its sector's energy transition with five green methanol ships on the water and another 20 on order. Even so, that represents just a fraction of its 700 owned and chartered ships. The new ships are also dual-fueled, meaning they are equipped to run on fossil fuels when needed, like when green methanol is too expensive or unavailable. Green methanol can be made from agricultural and food waste, or from carbon dioxide and hydrogen using renewable electricity. The fuel now costs two to three times more than fossil fuels, Maersk representatives said, and global production is currently miniscule. China's Goldwind (002202.SZ) , opens new tab has guaranteed green methanol supplies for the first of Maersk's 12 large ocean-going vessels to burn that fuel, with deliveries starting in 2026. But potential supplier Orsted (ORSTED.CO) , opens new tab is dropping plans to build the largest e-methanol plant under construction in Europe, saying that the green fuels market was developing more slowly than expected. E-methanol is made with CO2 captured from renewable sources. Maersk also plans to replace as many as 60 additional ships with dual-fuel vessels that run on renewable fuels including liquefied bio-methane. That low-emissions fuel from renewable sources is controversial because it is chemically identical to fossil methane, so any leaks release a potent greenhouse gas. Most of Maersk's ships also can run on biodiesel, a replacement fuel that has been available for years but still accounts for a tiny portion of maritime fuel. Familiar shippers like Nike (NKE.N) , opens new tab, Amazon.com (AMZN.O) , opens new tab, H&M and Nestle (NESN.S) , opens new tab have partnered with Maersk on green fuel-powered deliveries to help drive adoption that can justify investments in production. "No one can do this alone," Venkatesh Alagirisamy, chief supply chain officer at Nike, said at Tuesday's event, where officials called for regulators and governments to act. Clerc said Maersk has asked U.S. President Joe Biden's administration to use the Inflation Reduction Act to incentivize green maritime fuel, as it has done for the trucking and aviation sectors. Maersk and peers CMA CGM (CMACG.UL), Hapag-Lloyd (HLAG.DE) , opens new tab and MSC have also proposed a regulatory framework to the International Maritime Organization. That includes a plan to levy a "green balance fee" on carriers that gain a competitive advantage by clinging to lower-cost fossil fuels. "We need regulations and legislation to level the playing field," said Saba Takidar, Maersk's senior commercial sustainability partner. "The whole fuel ecosystem has to change." Sign up here. https://www.reuters.com/business/environment/maersk-says-ocean-shippings-zero-emissions-push-needs-government-support-2024-08-28/

2024-08-28 20:42

MEXICO CITY, Aug 28 (Reuters) - Michoacan state, Mexico's avocado heartland, launched a certification program on Wednesday aimed at helping consumers in the United States and other countries avoid those grown on illegally logged land. The stamp of approval will go to avocados that are grown where orchards are allowed and where the land has not been cleared illegally since 2018 or had a forest fire since 2012. Avocado exports to the United States, the largest consumer of Mexican avocados, have soared 48% since 2019 and were worth $3 billion last year, according to U.S. trade data. Demand for the fruit has contributed to the deforestation of up to 70,000 acres in the west-central Mexican states of Michoacan and Jalisco in the last decade, data from Guardian Forestal and Climate Rights International showed. "We want to ensure that the consumer ... has the certainty that it is an avocado free of environmental cruelty," Michoacan's Secretary of Environment Alejandro Mendez said at a news conference. The program automatically files complaints to the state's attorney general when, based on satellite images, it identifies avocado orchards that do not comply with the certification requirements, officials said. The state government cannot block orchards on illegally deforested land from exporting to the U.S. The program, however, offers transparency to U.S. companies and consumers about where and how their avocados are sourced, officials said. "This is a very welcome initiative by the Michoacan government, but its impact will ultimately depend on whether companies choose to use it," said Daniel Wilkinson, Climate Rights International's senior adviser. Activists have previously estimated that thousands of illegally deforested avocado orchards would likely go undetected by the program. Sign up here. https://www.reuters.com/world/americas/mexicos-michoacan-state-launches-avocado-certification-aimed-curbing-2024-08-28/

2024-08-28 20:19

Berkshire Hathaway hits $1 trln in market value for first time Super Micro Computer falls on delaying annual report S&P 500 -0.60%, Nasdaq -1.12%, Dow -0.39% Aug 28 (Reuters) - U.S. stocks fell on Wednesday ahead of a quarterly report from Nvidia, Wall Street's centerpiece event of the week that could shatter or add fresh fuel to a rally driven by optimism around artificial intelligence. Shares of the dominant seller of AI processors, due to report after the closing bell, dipped 2.1%, trimming their gain so far this year to 154%. Following several blowout quarterly reports, Nvidia (NVDA.O) , opens new tab is viewed as the biggest winner so far from AI technology. Its latest results follow concerns about increases in already-hefty spending by Microsoft (MSFT.O) , opens new tab, Alphabet (GOOGL.O) , opens new tab and other major players in the race to dominate emerging AI technology. "It's been the poster child for the AI boom and it's really led the charge, so it would be hard for the market to move on in spite of a disappointment from Nvidia," warned Keith Buchanan, senior portfolio manager at GLOBALT Investments in Atlanta. "Nobody has their arms around how long Nvidia can continue to surprise on the upside, but, naturally, it can't last forever," Buchanan added. Options pricing shows traders anticipate a move of around 9.8% in Nvidia's shares on Thursday, a day after it reports its results, data from analytics firm ORATS showed. Other chip stocks also dipped, with Broadcom (AVGO.O) , opens new tab and Advanced Micro Devices (AMD.O) , opens new tab each losing more than 2%. Google-owner Alphabet, Microsoft and Amazon (AMZN.O) , opens new tab each lost about 1%. The S&P 500 declined 0.60% to end the session at 5,592.18 points. The Nasdaq declined 1.12% to 17,556.03 points, while the Dow Jones Industrial Average declined 0.39% to 41,091.42 points. Of the 11 S&P 500 sector indexes, eight declined, led lower by information technology (.SPLRCT) , opens new tab, down 1.3%, followed by a 1.05% loss in consumer discretionary (.SPLRCD) , opens new tab. Investors widely expect the U.S. Federal Reserve will lower interest rates at its September meeting after Fed Chair Jerome Powell's support for imminent policy adjustment last week sparked broad-based market gains. The CME Group's FedWatch Tool currently sees a 64% chance of a 25-basis point reduction and a 37% chance of a 50-bps cut. The Personal Consumption Expenditure report for July, due on Friday, may provide further insight into the central bank's likely rate-cut trajectory. Super Micro Computer (SMCI.O) , opens new tab tumbled 19% after the AI server maker said it would delay the filing of its annual report for the fiscal year ended June 30, a day after Hindenburg Research disclosed a short position in the company. The market value of billionaire Warren Buffett's Berkshire Hathaway (BRKa.N) , opens new tab surpassed $1 trillion for the first time. Its class B stock rose about 0.9%. Declining stocks outnumbered rising ones within the S&P 500 (.AD.SPX) , opens new tab by a 1.3-to-one ratio. Volume on U.S. exchanges was relatively light, with 9.9 billion shares traded, compared to an average of 11.7 billion shares over the previous 20 sessions. Sign up here. https://www.reuters.com/markets/us/futures-subdued-markets-await-nvidia-test-2024-08-28/

2024-08-28 20:12

Aug 28 (Reuters) - Brazil's state-run oil firm Petrobras (PETR4.SA) , opens new tab will do what it can to reduce the reinjection of natural gas into oil wells, Chief Executive Magda Chambriard said on Wednesday. The government published a decree on Monday authorizing the oil regulator ANP to order oil companies to reduce the reinjection to increase the supply of gas and lower prices. The rule will apply only to new wells, said Mines and Energy Minister Alexandre Silveira at the time. "We will do everything possible," said Chambriard, adding that the reduction would only be feasible where it commissions new platforms. "On the (platforms) that are already there (in operation) and on those that are already being delivered, this will not be possible," she added. Currently, Brazil has a large production of gas that comes to the surface as a byproduct of oil production. The gas is often reinjected into the fields to maintain pressure, recover more oil and improve profitability. Sign up here. https://www.reuters.com/markets/commodities/brazils-petrobras-will-seek-reduce-gas-reinjection-when-possible-says-ceo-2024-08-28/

2024-08-28 19:43

BRASILIA/SAO PAULO, Aug 28 (Reuters) - Brazil's President Luiz Inacio Lula da Silva has picked central bank monetary policy director Gabriel Galipolo to be the institution's next governor, replacing Roberto Campos Neto whose term ends in December, Finance Minister Fernando Haddad said on Wednesday. "It is a great honor, a significant responsibility, and I am very pleased," Galipolo told journalists in Brasilia alongside Haddad. His naming had been widely expected. Galipolo's appointment must be confirmed by the Senate's economic affairs committee before going to the full Senate for approval for him to take the post in January. Haddad said the Senate will know when "the best moment" to hold Galipolo's hearing will be. A source with knowledge of the matter, who spoke anonymously, said the Senate hearing is expected to occur on Sept. 10 before the Upper House Economic Affairs Committee. This would allow Galipolo to receive senators' greenlight before the next monetary policy meeting on Sept. 17-18, aligning with the government's strategy to increase the significance of his remarks as Campos Neto's departure approaches. In a press statement, current governor Campos Neto congratulated his successor and stated, "The transition will be carried out as smoothly as possible, preserving the institution's mission." Following the announcement, the Brazilian real weakened further against the U.S. dollar, while interest rate futures increased. According to Haddad, the government will now focus on selecting Galipolo's replacement as monetary policy director, as well as the upcoming nominations for directors of regulation and institutional relations, which must be made by the end of the year. The former second-in-command at the finance ministry, Galipolo is a 42-year-old economist who holds a master's degree in political economy from the Pontifical Catholic University of Sao Paulo. His close relationship with Lula began in 2021 due in part to his longstanding ties with Luiz Gonzaga Belluzzo - a key Lula adviser and economics professor at Unicamp, a Sao Paulo university known for its unorthodox thinking - with whom Galipolo has co-authored books on economics. Outside of academia, Galipolo is known for his diverse professional background. He served as an economic adviser to the Sao Paulo state government under center-right Governor Jose Serra, became familiar with financial markets as CEO of investment bank Banco Fator and served as an adviser on public-private partnerships. Galipolo's recent hawkish comments as monetary policy director, in which he stressed that a rate hike is on the table amid an uncomfortable inflation scenario, helped ease asset prices after the Brazilian real suffered a steep decline against the U.S. dollar. The Selic benchmark interest rate is currently at 10.5%. Galipolo's stance contrasts with his position in May, when he sided with a minority group of central-bank directors chosen by Lula in advocating for a larger rate cut than the one ultimately decided by the majority. The division sparked fears that the central bank would be more tolerant of inflation when Lula holds a majority of seven picks on the nine-member board starting next year. Galipolo has publicly emphasized that Lula respects the independence of the rate-setting committee. At the same time, he has praised the performance of Campos Neto, saying he is "taking a victory lap" at the end of his term. Appointed by former far-right President Jair Bolsonaro, Campos Neto has faced persistent criticism from Lula for what the leader considers high interest rates and politicization of the central bank by the monetary authority head. Sign up here. https://www.reuters.com/business/finance/brazils-lula-nominate-galipolo-cenbank-chief-says-finance-minister-2024-08-28/

2024-08-28 19:31

Aug 28 (Reuters) - The U.S. Securities and Exchange Commission has threatened to sue non-fungible tokens marketplace OpenSea, the company's CEO said , opens new tab in a post on social media platform X on Wednesday. "OpenSea has received a Wells notice from the SEC threatening to sue us because they believe NFTs on our platform are securities," OpenSea co-founder and CEO Devin Finzer said. A Wells notice is a formal declaration that SEC staff intend to recommend an enforcement action. The SEC does not comment on the existence or nonexistence of a possible investigation, a spokesperson for the securities regulator said in a statement to Reuters. The SEC and the crypto industry have locked horns in recent years over their divergent views on whether crypto assets classify as securities and should be regulated similarly. "We're shocked the SEC would make such a sweeping move against creators and artists. But we're ready to stand up and fight," Finzer added. Crypto companies have accused the regulator of overreach and violating its jurisdiction, while the SEC has alleged the industry is flouting securities laws that are designed to protect investors and other market participants. "Although NFTs are not normally considered securities I suppose the SEC might be looking at how they were treated and traded and if they had the form or feel of an investment contract," said Michael Ashley Schulman, partner and CIO at Running Point Capital Advisors. "Attitudes towards NFTs were already severely hit in the last crypto crash and are having a hard time rebounding," he added. Prominent crypto firms, including exchange Coinbase (COIN.O) , opens new tab and retail trading app Robinhood (HOOD.O) , opens new tab, have repeatedly called for clearer regulation and new laws. An NFT is a digital asset that exists on a blockchain, which serves as a public ledger, allowing anyone to verify the asset's authenticity and ownership. NFTs, which became popular in 2017, have a unique digital signature and cannot be reproduced. Sign up here. https://www.reuters.com/technology/us-sec-threatens-sue-nft-marketplace-opensea-ceo-says-2024-08-28/