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Italy Issues 18 Billion Euros in Dual-Tranche Bond Transaction, Gets Robust Demand -- Update

By Emese Bartha

Italy issued a total of 18 billion euros ($18.61 billion) in a dual-tranche government bond transaction on Wednesday, attracting very strong demand, said one of the joint bookrunner banks.

Italy sold 13 billion euros in a new August 2035-dated conventional bond, or BTP, with the orderbooks closing in excess of 142 billion euros, excluding joint lead manager interest, the same bank said. The spread on this bond was set at 7 basis points above the February 2035 BTP. The new bond has a 3.65% coupon and was priced at 99.577, at a yield of 3.733%, the same bank said.

Italy also sold 5 billion euros in a new April 2046-dated green BTP, with the orderbooks closing in excess of 127 billion euros, excluding joint lead manager interest, the same bank said. The spread on this bond was set at 5 basis points above the September 2043 BTP yield. The new bond has a 4.10% coupon and was priced at 99.465, at a yield of 4.181%.

January is the high season for syndicated issues in the eurozone as sovereigns kick off their annual funding programs. Syndicated transactions accompany scheduled auctions.

On Tuesday Belgium and Slovenia syndicated new bonds, while Portugal mandated banks for a new 10-year bond syndication.

Joint lead managers of the dual-tranche Italian issue were Banca Monte dei Paschi di Siena, BNP Paribas, Citi, Credit Agricole CIB, NatWest Markets and UniCredit.

Write to Emese Bartha at emese.bartha@wsj.com

(END) Dow Jones Newswires

January 08, 2025 12:04 ET (17:04 GMT)

Chevron Highlights Production Growth in Kazakhstan, Permian Basin and Guyana -- OPIS

Chevron Chief Executive Mike Wirth on Wednesday said the company expects more crude oil production from its Permian Basin holdings and pointed to payoffs from its assets in Kazakhstan and Guyana.

In remarks at the Goldman Sachs Clean Tech and Utilities Conference, Wirth also said he is confident that the incoming Trump administration will pursue policies designed to help make energy more affordable.

Wirth praised Chris Wright, the new administration's pick for energy secretary, and former North Dakota Gov. Doug Burgum, Trump's choice to lead the Interior Department.

He said Chevron expects to begin pumping oil this year at its "super giant" field in Kazakhstan. The company first invested in the play more than 20 years ago and Wirth projected output will reach 260,000 b/d later this year. Under additional development phases, he said the company projects production will eventually increase to 700,000 b/d and possibly rise to 1 million b/d. The project is the largest ever undertaken by Chevron.

In addition, Wirth said the company last year brought on its Anchor deepwater field in the Gulf of Mexico. Production is at 200,000 b/d and is expected to increase to 300,000 b/d in 2026. At least two other projects are moving toward production, he said, adding that the company believes there "is still a lot of running room" in the deepwater.

Wirth also pointed to Chevron's large stake in the Permian Basin, where it owns more than 2 million acres. Unlike some less-advantaged producers, Wirth said Chevron does not have to pay royalties to landowners.

He also cited the company's use of artificial intelligence in evaluating variations across sub-basins and in predicting well productivity and efficiency. Chevron has had a 15% annual growth rate over the last several years and is projected to exceed 1 million b/d later this year.

Wirth said its planned acquisition of Hess, which promises to bring Chevron a large share of production in Guyana, has been approved by shareholders and has cleared Federal Trade Commission review.

ExxonMobil, however, has challenged the sale, claiming it had a right of first refusal in the joint venture. An arbitration hearing is scheduled this May and a decision should come within 90 days after that concludes, Wirth said.

This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.

   --Reporting by Tom Kloza, tkloza@opisnet.com; Editing by Jeff Barber,   jbarber@opisnet.com 
 

(END) Dow Jones Newswires

January 08, 2025 11:52 ET (16:52 GMT)

Alaska Sues Over Leasing Restrictions in Arctic National Wildlife Refuge -- OPIS

The state of Alaska has filed suit seeking to overturn Biden administration restrictions on oil and gas leasing and development in the Arctic National Wildlife Refuge.

In a suit filed Monday in the U.S. District Court for the District of Alaska, the state alleges the administration thwarted the will of lawmakers by voiding the results of a previous Congressionally mandated lease in the area and imposing such strict restrictions on new leases to "make any development economically and practically impossible."

The suit asks the court to reverse the restrictions and prohibit the Department of the Interior from moving ahead with a sale under the current restrictions planned for later this week.

The 2017 Tax Act required the Bureau of Land Management to conduct two lease sales on at least 400,000 acres in the 1.6-million-acre coastal area of the refuge off the Beaufort Sea by 2024.

The first sale was held in January 2021, just before then-President Donald Trump left office. But just weeks later, the Biden administration suspended all new sales, citing deficiencies in a required environmental review.

The administration conducted a new review and in December issued its plan for a sale to be held before Trump returned to office with the new restrictions in place.

In its suit, Alaska claims the administration's review was aimed at achieving a predetermined result, failed to allow for public input and was premised on a legally incorrect interpretation of the reasons for establishing the wildlife refuge.

"After years of deliberation and study of the potential benefits, costs, and risks, Congress mandated a policy of developing oil and gas on Alaska's Coastal Plain and established specific requirements to do so," the suit said. "The 2024 actions by the DOI and the BLM violate these specific requirements and frustrate Congress' overall purposes."

BLM did not respond to a request for comment Wednesday.

This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.

--Reporting by Steve Cronin, scronin@opisnet.com; Editing by Michael Kelly, mkelly@opisnet.com

(END) Dow Jones Newswires

January 08, 2025 11:47 ET (16:47 GMT)

Canadian Finance Minister LeBlanc Won't Seek Liberal Party Leadership -- 2nd Update

By Paul Vieira

OTTAWA--Canadian Finance Minister Dominic LeBlanc said he won't seek the Liberal Party leadership because his focus must remain on fighting against the risk of "unjust" tariffs from the incoming Trump administration.

"The best way for me to serve our country is to direct my full attention to my job," LeBlanc said, adding that Liberal lawmakers had encouraged him to campaign to replace Justin Trudeau as party leader. He made his decision Wednesday morning, he said, recognizing that Canada is at a "crucial juncture" in its relationship with Washington.

In a statement posted on the social-media platform X, LeBlanc said he intends to work with his cabinet colleagues, the country's provincial governments, and business and labor leaders to "make the case against the unjust application of tariffs on Canadian businesses and workers to the incoming Trump administration."

LeBlanc's name was immediately floated by Liberal Party insiders as a possible replacement for Trudeau, who announced his resignation on Monday amid poor public-opinion polling and heightened calls within the party for his departure. LeBlanc became finance minister last month, replacing Chrystia Freeland after her shock departure she attributed to a policy conflict with Trudeau over preparing for a possible trade war once President-elect Donald Trump takes office.

In late November, Trump threatened to impose a 25% tariff on all Canadian imports unless Ottawa took steps to stem the flow of illegal drugs and migrants into the U.S. In response, LeBlanc helped unveil a billion dollar-plus spending plan to bolster border security through the addition of hundreds of border agents and the acquisition of canine units, drones, helicopters and mobile-surveillance towers.

Trump has expanded his rationale for tariffs, saying he is unhappy that the U.S. runs a sizable trade deficit with Canada. He added that Canada should become America's 51st state, adding that he is prepared to use economic force to make that happen.

Economists warn a 25% U.S. tariff on Canadian imports would likely tip the country into a recession. Trade with the U.S. is the lifeblood of the Canadian economy, as about three-quarters of all Canadian exports are U.S.-bound.

"The threat these tariffs pose to our nation's economic well-being and the livelihood of a countless number of Canadian families cannot be understated," LeBlanc said.

LeBlanc, a lifelong friend of Trudeau, was viewed as one of the possible main contenders to run in a campaign to become the new Liberal Party leader. The two main contenders, according to political analysts and Liberal Party members, are Freeland and former Bank of Canada and Bank of England Governor Mark Carney.

The Liberal Party has yet to release details about the pending leadership campaign, which could takes months but former party officials contend must be conducted in a matter of weeks, not months.

Write to Paul Vieira at paul.vieira@wsj.com

(END) Dow Jones Newswires

January 08, 2025 11:45 ET (16:45 GMT)

ICE Midday: Canola Finding Strength on Lower Loonie

WINNIPEG, Manitoba--The ICE Futures canola market bounced back on Wednesday despite mixed sentiment in comparable oils, due to a weaker Canadian dollar.

Chicago soyoil and European rapeseed went up, while Malaysian palm oil was down. Crude oil was also slightly lower, being pressured by a stronger U.S. dollar.

One analyst said Chicago soyoil's recent rise could potentially start a rally that would spill over into canola. The U.S. Department of Agriculture will release its monthly supply/demand estimates on Friday.

The Canadian dollar was down one-quarter of a U.S. cent compared to Tuesday's close.

About 21,100 contracts have traded at 10:06 CST. Prices in Canadian dollars per metric tonne:

 
           Price      Change 
Mar       626.00     up 4.30 
May       632.30     up 4.70 
Jul       634.60     up 3.90 
Nov       611.70     up 4.00 
 

Source: Commodity News Service Canada, news@marketsfarm.com

(END) Dow Jones Newswires

January 08, 2025 11:39 ET (16:39 GMT)

News Highlights: Top Global Markets News of the Day - Wednesday at 11 AM ET
Jobless claims fall to a nearly one-year low as Trump set to take office 
 

The number of people who applied for unemployment benefits in the first week of the new year fell to an 11-month low, the latest sign layoffs remain extremely low even as businesses cut back on hiring.

 
Canada Suddenly Has No Leader, and No Plan, for a Trump Trade Fight 
 

The united front that Canada presented in President-elect Donald Trump's first term is fractured and distracted after Prime Minister Justin Trudeau's resignation.

 
Fed's Waller Sees More Rate Cuts in 2025 
 

The Federal Reserve governor expects inflation to continue to decline in 2025, opening the door to interest-rate cuts.

 
Stocks Slip as Treasury Yields Creep Upward 
 

Stocks edged lower after the 10-year U.S. Treasury yield advanced above 4.7% for the first time since last spring.

 
Fed Meeting Minutes to Shed Light on Rate-Cut Path in 2025 
 

Minutes from the meeting will be published at 2 p.m. Eastern on Wednesday.

 
Here's the real winter-storm effect on natural-gas prices and heating bills 
 

The recent rally in natural-gas prices raised an alarm among consumers suffering from a cold snap in much of the U.S. this week - but when it comes to household spending on the heating fuel this winter season, adequate domestic supplies are likely to cap price spikes for natural gas.

 
Eurozone Business Confidence Declines Again, Dragged by Industry 
 

Eurozone business sentiment declined further in December as industrial woes were exacerbated by political instability and the threat of tariffs from the U.S.

 
The 'Hidden Force' That Can Bring Mortgage Rates Down 
 

How home buyers could get a little break even if yields stay high.

 
Cocoa Farmers Uproot Their Plants Despite Record Prices 
 

Bad weather, failed government policies and a fast-spreading virus are reducing output from the world's top cocoa-growing countries.

 
Venture Capital Needs a New Math 
 

One fund sees a future for venture capital in smaller funding rounds, lower valuations and quicker exits than prevail today.

(END) Dow Jones Newswires

January 08, 2025 11:15 ET (16:15 GMT)

News Highlights: Top Company News of the Day - Wednesday at 11 AM ET
Albertsons profit beat overshadows a sales miss as it readies to go it alone 
 

Albertsons Cos. Inc.'s stock rose 3.6% early Wednesday, after the grocery chain beat profit estimates for its fiscal third quarter, offsetting a small revenue miss.

 
Shell Warns on Earnings, Cuts Production Guidance 
 

The energy giant said it expects earnings from its core integrated gas division to fall significantly in the fourth-quarter compared with the previous one due to expiring hedging contracts.

 
Meta Trials eBay Listings on Facebook Following EU Antitrust Pressure 
 

The social media giant will let some users browse eBay listings on its Facebook Marketplace platform after the EU ruled that the link between its classified-ads service and flagship social network undermined competition.

 
Tesla Stock Is Wobbling. What to Know About Its Latest Moves. 
 

The National Highway Traffic Safety Administration has started looking into the EV maker's new feature.

 
U.K. Considers Conditional Approval for $35 Billion Synopsys, Ansys Deal 
 

The U.K. competition regulator said it could approve Synopsys's $35 billion purchase of Ansys after the companies offered to sell off business units to ease regulators' concerns.

 
Why Nvidia Needs to Appeal to a Bigger Crowd 
 

Investors are hyper-focused on data centers despite big new efforts in gaming, self-driving cars and robotics.

 
Amazon Plans to Invest at Least $11 Billion in Cloud and AI Infrastructure in Georgia 
 

The investment aims to meet the increased demand for advanced cloud infrastructure and compute power, driven by generative AI, it said.

 
Tencent Makes Biggest Buyback After Addition to Pentagon List 
 

China's largest public company by market capitalization spent the equivalent of about $193.3 million to buy back 4.05 million shares on Wednesday.

 
Lufthansa Plans to Hire 10,000 in 2025 
 

Deutsche Lufthansa said more than half of the hiring is to take place in Germany.

 
Samsung Expects Further Profit Growth Slowdown, Missing Estimates 
 

The world's largest maker of memory chips and smartphones said sluggish demand for conventional chips used in personal computers and mobile phones weighed on its memory business for the quarter.

(END) Dow Jones Newswires

January 08, 2025 11:15 ET (16:15 GMT)

News Highlights: Top Financial Services News of the Day - Wednesday at 11 AM ET
Fed's Waller Sees More Rate Cuts in 2025 
 

The Federal Reserve governor expects inflation to continue to decline in 2025, opening the door to interest-rate cuts.

 
Lightsmith Group Backs Sea-Cargo Insurer Parsyl 
 

The firm is investing through its climate resilience-focused fund, joined by GLP Capital Partners and other participants.

 
Venture Capital Needs a New Math 
 

One fund sees a future for venture capital in smaller funding rounds, lower valuations and quicker exits than prevail today.

 
Blackstone Buying Stake in Accounting Firm Citrin Cooperman 
 

New Mountain Capital is selling its stake in accounting firm Citrin Cooperman to an investor group led by Blackstone, the first flip of an audit firm by a private-equity investor.

 
Italy's Banca Ifis Bids For Illimity Amid Sector Consolidation 
 

The takeover offer values the specialty lender at around $309 million as banking consolidation in the country heats up.

 
Sixth Street Strikes Deal to Manage $13 Billion of Insurer's Assets 
 

Northwestern Mutual intends to take a small minority stake in the investment firm.

 
Paychex to Acquire Competitor Paycor HCM 
 

Payroll-services company Paychex is acquiring rival Paycor HCM in a deal with an enterprise value of about $4.1 billion.

 
Your Fancy, New ETF Might Be a Little Too Fancy 
 

Exchange-traded funds have mostly been great investments, but they are getting too complex for their own good.

 
Financial Services Roundup: Market Talk 
 

Find insight on Banco BPM, Indonesian and Thai banks and more in the latest Market Talks covering financial services.

 
Private-Equity Veteran Launches New Venture to Fill Fundraising Shortfall 
 

Private-equity veteran Richard Lichter launched Causeway Equity Partners, looking to capitalize on the growing numbers of investment managers struggling to hit their fundraising targets.

(END) Dow Jones Newswires

January 08, 2025 11:15 ET (16:15 GMT)

News Highlights: Top Energy News of the Day - Wednesday at 11 AM ET
Oil prices tick up after industry data shows fall in U.S. crude inventories 
 

Oil futures were flat to slightly higher Wednesday, with investors awaiting official data on U.S. inventories after an industry report was said to show a large drop in crude stocks but significant increases in gasoline and distillates.

 
Winter Weather Lifts U.S. Natural Gas Futures 
 

Natural gas futures were moving higher amid strong weather-driven demand across much of the U.S. while some production freeze-offs limit supply.

 
Here's the real winter-storm effect on natural-gas prices and heating bills 
 

The recent rally in natural-gas prices raised an alarm among consumers suffering from a cold snap in much of the U.S. this week - but when it comes to household spending on the heating fuel this winter season, adequate domestic supplies are likely to cap price spikes for natural gas.

 
Shell Warns on Earnings, Cuts Production Guidance 
 

The energy giant said it expects earnings from its core integrated gas division to fall significantly in the fourth-quarter compared with the previous one due to expiring hedging contracts.

 
The Billionaire Mining Magnate Who Bet Coal Had a Future-and Won Big 
 

The U.K. closed its last coal-powered plant, but 76-year-old Low Tuck Kwong ignored naysayers and built a fortune from the world's dirtiest fossil fuel.

 
ExxonMobil Earnings to Fall on Lower Oil Prices 
 

The change in gas prices, however, may boost earnings by as much as $400 million for the quarter, the company said..

 
Energy & Utilities Roundup: Market Talk 
 

Find insight on Shell, Galp, Phillips 66 and more in the latest Market Talks covering energy and utilities.

 
Phillips 66 to Buy EPIC NGL for $2.2 Billion 
 

Phillips 66 will buy EPIC NGL for $2.2 billion to help the Houston oil refiner grow its Permian midstream business.

 
Biden to Ban Drilling in Some Coastal Waters 
 

The ban is expected to invoke a decades-old law that could make it difficult for the incoming Trump administration to reverse.

 
Plug Power and Bloom Energy Stocks Jump on New Hydrogen Rules 
 

The Treasury Department issued new rules on Friday for companies trying to get tax breaks for making clean hydrogen.

(END) Dow Jones Newswires

January 08, 2025 11:15 ET (16:15 GMT)

U.S. Crude Oil Stockpiles Extend Decline to Seven Weeks

By Anthony Harrup

U.S. crude oil inventories fell for a seventh consecutive week, while product stocks saw large builds last week as refineries increased their capacity use, data released by the U.S. Energy Information Administration showed Wednesday.

Commercial crude oil stocks excluding the Strategic Petroleum Reserve fell by 959,000 barrels to 414.6 million barrels in the week ended Jan. 3 and were about 6% below the five-year average for the time of year, the EIA said. The decrease was in line with the 1 million barrel draw expected in a Wall Street Journal survey of analysts.

Oil held in the SPR rose by 247,000 barrels to 393.8 million barrels, while crude stocks at Cushing, Okla., the Nymex delivery hub, fell by 2.5 million barrels to 20 million barrels, the lowest level in a decade.

The EIA estimated U.S. crude oil production at 13.56 million barrels a day, down by 10,000 barrels a day from the week before. Crude imports fell by 497,000 barrels a day to 6.4 million barrels a day, and exports dropped by 776,000 barrels a day to 3.1 million barrels a day.

Refinery capacity use rose to 93.3% from 92.7%, versus expectations in the Journal survey of a 0.3 percentage point decrease.

Gasoline inventories jumped by 6.3 million barrels to 237.7 million barrels in an eighth straight weekly build, and were about 1% below the five-year average. Gasoline demand was 313,000 barrels a day higher at 8.5 million barrels a day. Gasoline stocks were projected to have risen by 500,000 barrels.

Distillate fuel stocks rose by 6.1 million barrels to 128.9 million barrels, against expectations of a 200,000 barrel build, and were 4% below the five-year average. Distillate fuel demand was little changed at 3.2 million barrels a day.

 
Change in U.S. oil inventories for the week ended Jan. 3: 
 
                   Crude       Gasoline      Distillates         Refinery Use 
EIA data:          -1.0           6.3            6.1                  0.6 
Forecast:          -1.0           0.5            0.2                 -0.3 
 

Note: Numbers in millions of barrels, with the exception of refinery use, which is in percentage points.

Write to Anthony Harrup at anthony.harrup@wsj.com

(END) Dow Jones Newswires

January 08, 2025 11:06 ET (16:06 GMT)

Canada Finance Minister LeBlanc Won't Seek Liberal Party Leadership -- Update

By Paul Vieira

OTTAWA--Canada's Finance Minister Dominic LeBlanc said he won't seek the Liberal Party leadership because his focus must remain on fighting against the risk of "unjust" tariffs from the incoming Trump administration.

"The best way for me to serve our country is to direct my full attention to my job," said LeBlanc, adding that Liberal lawmakers had encouraged him to campaign to replace Justin Trudeau as party leader. He added that Canada is at a "crucial juncture" in its relationship with Washington.

In a statement posted on the social-media platform X, LeBlanc said he intends to work with his cabinet colleagues, the country's provincial governments, and business and labor leaders to "make the case against the unjust application of tariffs on Canadian businesses and workers to the incoming Trump administration."

LeBlanc's name was immediately floated by Liberal Party insiders as a possible replacement for Trudeau, who announced his resignation on Monday amid poor public-opinion polling and heightened calls within the party for his departure. LeBlanc became finance minister last month, replacing Chrystia Freeland after her shock departure she attributed to a policy conflict with Trudeau over preparing for a possible trade war once President-elect Donald Trump takes office.

In late November, Trump threatened to impose a 25% tariff on all Canadian imports unless Ottawa took steps to stem the flow of illegal drugs and migrants into the U.S. In response, LeBlanc helped unveil a billion-dollar-plus spending plan to bolster border security, through the addition of hundreds of border agents and the acquisition of canine units, drones, helicopters and mobile-surveillance towers.

Trump has expanded his rationale for tariffs, saying he is unhappy that the U.S. runs a sizable trade deficit with Canada. Trump added that Canada should become America's 51st state, adding that he is prepared to use economic force to make that happen.

Economists warn a 25% U.S. tariff on Canadian imports would likely tip the country into a recession. Trade with the U.S. is the lifeblood of the Canadian economy, as about three-quarters of all Canadian exports are U.S.-bound.

Write to Paul Vieira at paul.vieira@wsj.com

(END) Dow Jones Newswires

January 08, 2025 11:04 ET (16:04 GMT)

Canada Finance Minister LeBlanc Won't Seek Liberal Party Leadership

By Paul Vieira

OTTAWA--Canada's Finance Minister Dominic LeBlanc says he won't seek the Liberal Party leadership, saying his focus must remain on fighting against the risk of "unjust" tariffs from the incoming Trump administration.

"The best way for me to serve our country is to direct my full attention to my job," said LeBlanc, adding that Liberal lawmakers had encouraged him to replace Justin Trudeau as party leader. He added that Canada is at a "crucial juncture" in its relationship with Washington.

In a statement posted on the social-media platform X, LeBlanc said he intends to work with his cabinet colleagues, the country's provincial governments, and business and labor leaders to "make the case against the unjust application of tariffs on Canadian businesses and workers to the incoming Trump administration."

LeBlanc's name was floated by Liberal Party insiders as a possible replacement for Trudeau, who announced his resignation on Monday amid porous polling and heightened calls within the party for his departure.

Trump has threatened to slap a 25% tariff on all Canadian imports as soon as he takes office.

Write to Paul Vieira at paul.vieira@wsj.com

(END) Dow Jones Newswires

January 08, 2025 10:47 ET (15:47 GMT)

Arcadium Lithium Shares Rise After U.S. Clearance for Rio Tinto Buyout

By Chris Wack

Arcadium Lithium shares were up 9% to $5.73 after the company said the Committee on Foreign Investment in the U.S. concluded its review of the proposed acquisition of Arcadium Lithium by Rio Tinto and determined that there are no unresolved national security concerns.

The lithium chemicals producer said that merger control clearance has so far been satisfied or waived in Australia, Canada, China, Japan, South Korea, the U.K. and the U.S.

The transaction remains subject to investment screening approvals in Australia, Canada and Italy, as well as other customary closing conditions.

In October, Rio Tinto said it would pay $5.85 a share in cash to acquire the lithium producer, a deal valued at $6.7 billion.

Write to Chris Wack at chris.wack@wsj.com

(END) Dow Jones Newswires

January 08, 2025 10:40 ET (15:40 GMT)

ICE Canola Rising in Morning Trading

WINNIPEG, Manitoba--The ICE Futures canola market was stronger Wednesday morning, taking some direction from Chicago soyoil.

European rapeseed was also up on the day, although Chicago soybeans and Malaysian palm oil were lower.

The March canola contract was trading above both its 20- and 100-day moving averages but ran into resistance around the C$625-per-metric-ton area.

Tightening supply projections and the ongoing need to ration demand going forward remained supportive from a fundamental standpoint, with Canadian canola still looking cheap compared to other oilseeds.

About 13,900 canola contracts had traded as of 9:58 a.m. EST.

Prices in Canadian dollars per metric ton at 9:58 a.m. EST:

 
           Price      Change 
Mar       624.60     up 2.90 
May       630.60     up 3.00 
Jul       632.90     up 2.20 
Nov       607.90     up 0.20 
 

Source: Commodity News Service Canada, news@marketsfarm.com

(END) Dow Jones Newswires

January 08, 2025 10:39 ET (15:39 GMT)

U.S. Wholesale Inventories Dipped in November on Lower Durable Goods Stocks

By Ed Frankl

Stocks at U.S. wholesalers dipped in November, dragged by inventories of longer-lasting goods, Commerce Department data said Wednesday.

Inventories at merchant wholesalers were down 0.2% on month, according to adjusted figures, matching economists' expectations and compared with a downwardly revised flat reading in October. The gauge is a key metric in estimating the U.S.'s quarterly gross domestic product.

Inventories of durable goods--products made to last longer than three years--fell 0.4% while for nondurable they rose 0.2%.

The ratio of inventories to sales--measuring how many months it would take for wholesalers to sell current stocks--was 1.33 in November, down from 1.34 in October and 1.35 in November last year.

Write to Ed Frankl at edward.frankl@wsj.com

(END) Dow Jones Newswires

January 08, 2025 10:30 ET (15:30 GMT)

Unemployment Rate Seen Holding at 4.2% -- Data Week Ahead

The following are median forecasts for this week's remaining U.S. data from a survey compiled by The Wall Street Journal.

Forecasts were last updated Monday afternoon.

 
DATE      TIME  RELEASE                       PERIOD     CONSENSUS    PREVIOUS 
 
Friday    0830  Nonfarm Payrolls               Dec       +155K   (22) +227K 
          0830  Unemployment Rate              Dec        4.2%   (22)  4.2% 
          0830  Avg. Hourly Wages M/M*         Dec       +0.3%   (21) +0.37% 
          0830  Avg. Hourly Wages Y/Y*         Dec       +4.0%   (12) +4.03% 
          1000  Consumer Sentiment             Jan        74.0   (15)  74.0** 
                  (Prelim) 
 
*All private-sector workers 
**End-Dec Reading 
 
(Figures in parentheses refer to number of economists surveyed.) 
 
Write to Donna Huneke at dataweekahead@wsj.com 

(END) Dow Jones Newswires

January 08, 2025 10:14 ET (15:14 GMT)

Shell Warns of Significantly Lower Integrated Gas -2-

0845 GMT - Shell's renewables division is likely to remain loss-making in the fourth quarter as the unit continues under scrutiny, Interactive Investor's head of markets Richard Hunter writes. An adjusted earnings loss of up to $600 million--up from a $200 million loss in the third quarter--is expected, he writes. The analyst said that either unproven technologies or unprofitable investments are making progress difficult, adding that Shell's decision to dial back sustainable energy investments last year drew a mixed response, Hunter writes. Shell's stock faces the ever-increasing possibility that some investors will be unwilling or unable to invest given environmental concerns but, for now, the market consensus is that the company is a strong buy, Hunter adds. Shares fall 1.9% at 25.68 pounds. (adam.whittaker@wsj.com)

--

Shell's Weak Trading Update Unlikely to Hit Shareholder Returns -- Market Talk

0814 GMT - Shell's fourth-quarter trading update shows weakness across its oil, gas and power divisions, but this shouldn't affect shareholder returns, RBC Capital Markets analysts Biraj Borkhataria and Adnan Dhanani write. The analysts regard the update as negative and believe it will result in downgrades to consensus earnings expectations. Shell booked a $1.3 billion charge related to emission permits and warned of hedging contracts dragging on its integrated gas division. But because these charges are non-cash, the weaker results shouldn't harm shareholder payouts or Shell's broader outlook, the analysts write. Shares fall 1.8% to 25.70 pounds.(adam.whittaker@wsj.com)

--

Galp CEO Exit Likely to Fuel Acquisition Expectations -- Market Talk

0740 GMT - Galp CEO Filipe Silva's surprise resignation is likely to fuel expectations about a potential acquisition of the Portuguese energy company, RBC Capital Markets' Biraj Borkhataria and Adnan Dhanani say in a research note. Chevron seems the most logical buyer of Galp, the analysts say. "Filipe [Silva]'s legacy has been to 'tidy up' Galp's priorities in the energy transition, simplifying the low carbon strategy, while also streamlining the upstream portfolio through the asset sales in Angola & Mozambique," the analysts say. All of this and near-term growth expectations thanks to a project in Brazil make Galp an appealing target for a bigger peer, RBC says. (adria.calatayud@wsj.com)

--

Coal Consumption in China, India Still Strong Despite Renewables Growth -- Market Talk

0705 GMT - Coal consumption in China and India is still going strong despite growing renewable energy capacity, Bahana Sekuritas analysts say in a research report. Rising global electricity consumption, driven mainly by China and India, is likely to fuel coal consumption growth, particularly as the two countries begin to rely more on domestic coal production to support energy independence, the analysts say. Coal prices may stay resilient on balancing supply-demand dynamics amid headwinds faced by other commodities, the analysts add. Bahana Sekuritas upgrades Indonesia's coal mining sector to overweight from neutral. The brokerage's top sector pick is United Tractors, for which it raises the target price to IDR32,000.00 from IDR27,850 with an unchanged buy rating. Shares are 1.3% lower at IDR25,525.00. (ronnie.harui@wsj.com)

--

China's EV Demand, Prices May Trend Lower in the First Quarter -- Market Talk

0658 GMT - The demand and pricing of electric vehicles in China may trend down in the first quarter amid the winter seasonality, HSBC Global Research analysts write in a note. EV demand was strong during the 4Q high season but there were signs of softer pricing towards the end of the year, they say. HSBC Global Research downgrades its rating on Great Wall Motor and Zhongsheng Group to reduce from hold and NIO to hold from buy. However, the brokerage forecasts EV penetration in China may rise to 60% this year. This could help the industry consolidate in the long term and further advance its autonomous driving technology, they add. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

--

South Sudan Oil Exports on the Move After Pipeline Repairs -- Market Talk

0632 GMT - South Sudan resumes exports of its Dar blend crude oil after neighbouring Sudan lifted a force majeure and the completion of repairs to a key export pipeline to the Red Sea, says oil minister, Puot Kang Chol. Crude exports, which averaged around 150,000 barrels/day in 2023, came to an abrupt halt in March last year after the main pipeline ruptured in a territory controlled by paramilitary force, Rapid Support Forces. Chol notes that exports resume on January 8 after improved security measures, "Following the resolution of pipeline and security concerns and the lifting of force majeure, we are restarting operations with the full support of our international partners," he says; "This restart will have a significant positive impact on South Sudan's economy."(Nicholas.Bariyo@wsj.com;@Nicholasbariyo)

--

Aluminum, Alumina Prices May Diverge After Lunar New Year -- Market Talk

0419 GMT - The path ahead for alumina and aluminum is expected to diverge following the Lunar New Year holiday that begins in end-January, HSBC analyst Howard Lau says in a note. Aluminum and alumina futures have slumped since the start of 2025 as a supply shortage eases, with demand falling in the traditional off-season before the Lunar New Year and as new capacity ramps up, Lau says. Going forward, aluminum should rebound, with demand-supply dynamics staying favorable. Supply growth is expected to be limited, while structural demand growth from renewables should offset China property-sector weakness, he says. The alumina supply situation should continue to improve, however, weighing on prices that remain much higher than the average over recent years. LME three-month aluminum is 0.2% lower at $2,513.50 a ton. (hoishan.chan@wsj.com)

--

Iron Ore Drops; Investor Remain Cautious Before Trump Inauguration -- Market Talk

0314 GMT - Iron-ore prices are lower in early Asian trade. Investors are cautious before the inauguration of Donald Trump, Nanhua Futures says in a research note. Market expectations could change completely if China unveils more supportive policies in the near term, Nanhua says. Inventories at Chinese ports are declining, providing some support for ferrous metal demand, it adds. There is a low likelihood of a sharp drop in iron-ore prices based on fundamentals, it adds. The most-traded iron-ore contract on the Dalian Commodity Exchange is down 0.5% at CNY749.5 a ton. (sherry.qin@wsj.com)

Write to Barcelona Editors at barcelonaeditors@dowjones.com

(END) Dow Jones Newswires

January 08, 2025 10:14 ET (15:14 GMT)

Shell Warns of Significantly Lower Integrated Gas Earnings, Cuts Production Guidance -- Commodities Roundup

MARKET MOVEMENTS:

--Brent crude oil is up 0.2% to $77.20 a barrel.

--European benchmark gas is down 2.8% to EUR46.17 a megawatt-hour.

--Gold futures are up 0.6% to $2,681.90 a troy ounce.

--LME three-month copper futures are up 0.4% to $9,013.50 a metric ton.

TOP STORY:

Shell Warns of Significantly Lower Integrated Gas Earnings, Cuts Production Guidance

Shell warned of significantly lower earnings in its integrated gas division and cut production guidance across its oil and gas segments.

The London-based energy giant said Wednesday that it expects earnings from its core integrated gas division to fall significantly in the fourth-quarter compared with the previous one due to expiring hedging contracts. The division reported $2.87 billion in adjusted earnings in the third quarter.

In a trading update ahead of its earnings due on Jan. 30, Shell said it expects to book a noncash post-tax impairment of between $1.5 billion and $3.0 billion owing to macroeconomic and operational changes.

OTHER STORIES:

The Billionaire Mining Magnate Who Bet Coal Had a Future-And Won Big

Deep in Indonesian Borneo, workers laid asphalt on a new 60-mile road being built to transport coal from mines that have never been busier.

At one end of the road, crews built a 40-foot-high conveyor belt that whisks the coal over swampland to a new jetty on the Mahakam River. From there, the coal is funneled onto barges and floated downstream to a private port on the Pacific Ocean. Giant loading machines fill equally massive ships headed for China, India and the Philippines.

--

Cocoa Farmers Uproot Their Plants Despite Record Prices

Cocoa was the best-performing commodity in 2024, outpacing even bitcoin, but that hasn't stopped farmers from abandoning the crop.

Farmers in the top cocoa-producing region of the world are reseeding their lands because of a mixture of bad weather, failed government policies-many of which were aimed at helping farmers-and a fast-moving virus that has ravaged their plants.

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Galp CEO Filipe Silva Resigns; New Appointment Expected in Coming Days

Galp said Chief Executive Filipe Silva has resigned and that it will announce his replacement in the coming days.

The Portuguese oil-and-gas producer said late Tuesday that Silva's resignation, effective immediately, was due to family reasons.

--

Solaris Names Richard Hughes as CFO, Expands Leadership Team

Solaris Resources has expanded its leadership team and named a new finance chief as the resources company finalizes its efforts to leave Canada and shift to Ecuador.

Solaris appointed Richard Hughes as chief financial officer and company secretary, succeeding CFO Sunny Lowe. Hughes had been chief financial officer of Trident Royalties, which was acquired last year by Deterra Royalties.

MARKET TALKS:

Winter Weather Lifts U.S. Natural Gas Futures -- Market Talk

0915 ET - Natural gas futures move higher amid strong weather-driven demand across much of the U.S. while some production freeze-offs limit supply. Prices slid the previous session, "but colder forecasts for the third week of January are yielding resurgent upside," Eli Rubin of EBW Analytics says in a note. "The market may not be fully appreciating the magnitude of a tremendous national January storage draw. Further, the duration of freeze-offs may last longer than realized." A likely below-average storage withdrawal for last week--the EIA report is due at 12 p.m. ET--is expected to be followed by large inventory draws in the following weeks. The Nymex front month is up 3.9% at $3.582/mmBtu. (anthony.harrup@wsj.com)

--

Vestas and Orsted Shares Fall on Trump Comments -- Market Talk

1358 GMT - Shares in Vestas Wind Systems and Orsted are under pressure after U.S. President-elect Trump made negative comments on wind turbines and threatened punitive tariffs on Danish goods if Denmark is not compliant with regards to Greenland, Sydbank says. Trump held a press conference Tuesday, saying wind turbines were like garbage in a field while criticizing the cost of electricity produced by wind farms. "We're gonna try and have a policy where no windmills are being built," he said. He also threatened to hit Denmark with tariffs "at a very high level" if Danish officials don't cooperate with his bid to take control of Greenland from Denmark. Vestas shares fall 6.6% to 97.54 Danish kroner while Orsted shares fall 7.5% to 305.90 kroner. (dominic.chopping@wsj.com)

--

Shell's Cuts to LNG Production Disappoints Investors -- Market Talk

1053 GMT - Shell reducing its liquid-natural-gas production and volume guidance for the final three months of 2024 is disappointing for the market, AJ Bell Investment Director Russ Mould writes. Payments for emission certificates and an airline fuel duty payment in Germany is also expected to hit cash flow and working capital at an unfortunate time, he adds. Cuts to cash flow and working capital isn't the kind of message Shell's chief executive will want to deliver while he desperately tries to close the valuation gap with its U.S. peers, Mould writes. Shares trade down 1.36% at 25.81 pounds.(adam.whittaker@wsj.com)

--

Palm Oil Edges Lower Amid Mixed Cues -- Market Talk

1017 GMT - Palm oil edges lower amid mixed cues. As palm oil enters the low production season, market expectations are for Malaysian palm oil inventories to have continued to fall in December, Zhongxin Futures said in a note. However, sentiment has stabilized after a correction in recent sessions, in response to uncertainty relating to the execution of Indonesia's B40 biodiesel mandate, Zhongxin says. Palm oil prices will likely continue to fluctuate in the near term with an upward bias, it adds. The Bursa Malaysia Derivatives contract for March delivery closed 9 ringgit lower at 4,356 ringgit a ton. (sherry.qin@wsj.com)

--

Gold Rises Ahead of Fed Minutes -- Market Talk

0928 GMT - Gold prices rise in early trade as traders await more cues on the path of interest rates in the U.S. Futures are up 0.1% at $2,667.50 a troy ounce, supported by central-bank buying, uncertainties around U.S. tariff plans under President-elect Donald Trump and geopolitical tensions. Meanwhile, the Chinese central bank added to its gold reserves for a second month in a row in December. "Gold ETFs have become less important for the gold price trend," Commerzbank Research analysts say. "Gold purchases by central banks have become much more influential over the past three years." Markets are now waiting for the release of the Federal Reserve's meeting minutes later on Wednesday and Friday's jobs report. (giulia.petroni@wsj.com)

--

Base Metals Edge Higher, Testing Robust Support Levels -- Market Talk

0916 GMT - Base metal prices rise in early trade, with LME three-month copper up 0.6% at $9,031.50 a metric ton and aluminum up 0.2% at $2,527 a ton. "The base metals complex edged higher as prices tested the robust support levels, suggesting a lack of selling pressure and a likely continuation of sideways price moves," says Daria Efanova, head of research at Sucden Financial. According to market watchers, industrial metals have had a broadly muted start to 2025 amid uncertainties around the path of China's economic recovery, persistent geopolitical tensions and the threat of U.S. tariffs on Chinese goods looming on the market's outlook. Copper recently found support from China's stepped up support for the yuan, as a weaker yuan increases costs for Chinese buyers of the red metal. (giulia.petroni@wsj.com)

--

Oil Futures Gain Ground Ahead of U.S. Inventory Data -- Market Talk

0852 ET - Oil futures are higher ahead of the EIA's weekly inventories report that's expected to show a seventh consecutive decline in U.S. crude stocks. Analysts note a bigger-than-expected 4 million barrel draw reported by the API. "Although today's EIA may not indicate as large of a crude draw as the API, the fact that Cushing accounted for 3⁄4 of the API's stock reduction is a bullish consideration," Ritterbusch says in a note. "The low Cushing stocks have emanated partially from strong refinery activity across the mid-continent region that has erased a long-standing gasoline supply deficit," the firm adds. Crude stocks are expected to have fallen by 1 million barrels, according to a Wall Street Journal survey of analysts. WTI is up 0.5% at $74.60 a barrel, and Brent is up 0.3% at $77.29 a barrel. (anthony.harrup@wsj.com)

--

Oil Supported by Stronger Fundamentals, Supply Concerns -- Market Talk

0857 GMT - Oil prices rise in early trade, supported by a stronger physical market and concerns over Russian and Iranian flows. Brent crude is up 0.9% at $77.79 a barrel, while WTI trades 1.2% higher at $75.17 a barrel. A survey by The Wall Street Journal showed U.S. crude stockpiles are expected to have fallen by 1 million barrels last week, a positive sign on demand trends in the world's top oil consumer. Meanwhile, OPEC production fell in December, according to Bloomberg and Reuters surveys. Still, further price gains seem to be capped by prospects of an oversupplied market this year and uncertainties around global consumption. "We are holding to our forecast for Brent crude to average $76/bbl in 2025, down from an average of $80/bbl in 2024," BMI analysts say in a note to clients. (giulia.petroni@wsj.com)

--

Shell's Renewables Division Set to Remain Loss-Making, Under Scrutiny -- Market Talk

(MORE TO FOLLOW) Dow Jones Newswires

January 08, 2025 10:14 ET (15:14 GMT)

Johnson & Johnson on Track for Lowest Close Since November 2020 -- Data Talk

Johnson & Johnson (JNJ) is currently at $142.46, down $3.77 or 2.58%

--Would be lowest close since Nov. 6, 2020, when it closed at $142.25

--On pace for largest percent decrease since Aug. 21, 2023, when it fell 2.98%

--Currently down three of the past five days

--Down 1.49% month-to-date

--Down 1.49% year-to-date

--Down 23.41% from its all-time closing high of $186.01 on April 25, 2022

--Down 11.99% from 52 weeks ago (Jan. 10, 2024), when it closed at $161.87

--Down 14.89% from its 52-week closing high of $167.38 on Sept. 10, 2024

--Would be a new 52-week closing low

--Traded as low as $141.44; lowest intraday level since Nov. 6, 2020, when it hit $139.65

--Down 3.28% at today's intraday low; largest intraday percent decrease since Jan. 23, 2024, when it fell as much as 3.42%

--Worst performer in the DJIA today

--Subtracted 23.17 points from the DJIA so far today

All data as of 9:47:54 AM ET

Source: Dow Jones Market Data, FactSet

(END) Dow Jones Newswires

January 08, 2025 10:05 ET (15:05 GMT)

Ericsson Names Anthony Bartolo CEO of API Venture

By Dominic Chopping

STOCKHOLM--Ericsson named Anthony Bartolo as chief executive of a new company launched by a group of global telecom operators to boost development of new digital services.

The Swedish telecom-equipment company said last year that it had joined forces with a host of companies to form a new venture aimed at accelerating adoption and innovation of network APIs--the interfaces that enable applications and mobile networks to communicate with each other and allow developers to build software applications.

Companies committing to the venture include America Movil, AT&T, Bharti Airtel, Deutsche Telekom, Orange, Reliance Jio, Singtel, Telefonica, Telstra, T-Mobile, Verizon and Vodafone, but additional telecom operators are encouraged to join.

The new company has been named Aduna, Ericsson said Wednesday.

Bartolo was most recently chief operating officer at Vonage, and before that was at Bandwidth. He has also held senior roles at Avaya and Tata Communications. He will assume his responsibilities as CEO on Jan. 20, 2025.

The closing of the venture is expected later this year, subject to regulatory approvals and other customary conditions.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

January 08, 2025 09:32 ET (14:32 GMT)

Meta Trials eBay Listings on Facebook Marketplace Following EU Antitrust Pressure

By Edith Hancock

Meta Platforms will let some users browse eBay listings on its Facebook Marketplace platform after the EU ruled that the link between its classified-ads service and flagship social network undermined competition.

Meta said Wednesday that it would run a test in Germany, France, and the U.S. enabling people to browse listings from eBay on Facebook Marketplace while completing their transaction on eBay. It added the move could benefit users on both platforms as eBay sellers will have more exposure to Facebook users and those on Marketplace will see more listings from eBay.

The California-based social media giant said it would still challenge the European Commission's ruling, which came with a landmark 797.72 million euro ($825 million) fine for allegedly abusing its dominant position in social media to squeeze out rivals in classified ads. The watchdog also ruled that Meta's terms allow it to leverage advertising data from third parties to its own advantage.

EU officials first started investigating Meta in 2021, eventually penalizing the company in November 2024 for allegedly breaking the bloc's antitrust rules. Meta resolved a similar antitrust probe in U.K. antitrust authorities in 2023 by offering to change how it uses advertisers' data.

"While we disagree with and continue to appeal the European Commission's decision on Facebook Marketplace, we are working quickly and constructively to build a solution which addresses the points raised," the company said.

Write to Edith Hancock at edith.hancock@wsj.com

(END) Dow Jones Newswires

January 08, 2025 09:28 ET (14:28 GMT)

News Highlights: Top Company News of the Day - Wednesday at 9 AM ET
Albertsons profit beat overshadows a sales miss as it readies to go it alone 
 

Albertsons Cos. Inc.'s stock rose 3.6% early Wednesday, after the grocery chain beat profit estimates for its fiscal third quarter, offsetting a small revenue miss.

 
Shell Warns on Earnings, Cuts Production Guidance 
 

The energy giant said it expects earnings from its core integrated gas division to fall significantly in the fourth-quarter compared with the previous one due to expiring hedging contracts.

 
Tesla Stock Falls Again. What to Know About Its Latest Drop. 
 

The National Highway Traffic Safety Administration has started looking into the EV maker's new feature.

 
U.K. Considers Conditional Approval for $35 Billion Synopsys, Ansys Deal 
 

The U.K. competition regulator said it could approve Synopsys's $35 billion purchase of Ansys after the companies offered to sell off business units to ease regulators' concerns.

 
Why Nvidia Needs to Appeal to a Bigger Crowd 
 

Investors are hyper-focused on data centers despite big new efforts in gaming, self-driving cars and robotics.

 
Amazon Plans to Invest at Least $11 Billion in Cloud and AI Infrastructure in Georgia 
 

The investment aims to meet the increased demand for advanced cloud infrastructure and compute power, driven by generative AI, it said.

 
Tencent Makes Biggest Buyback After Addition to Pentagon List 
 

China's largest public company by market capitalization spent the equivalent of about $193.3 million to buy back 4.05 million shares on Wednesday.

 
Lufthansa Plans to Hire 10,000 in 2025 
 

Deutsche Lufthansa said more than half of the hiring is to take place in Germany.

 
Samsung Expects Further Profit Growth Slowdown, Missing Estimates 
 

The world's largest maker of memory chips and smartphones said sluggish demand for conventional chips used in personal computers and mobile phones weighed on its memory business for the quarter.

 
LG Electronics Expects Quarterly Profit to Halve Amid Higher Logistics Costs 
 

The South Korean consumer-electronics giant forecast a 53% drop in fourth-quarter operating profit, as its television and auto-component businesses remained sluggish.

(END) Dow Jones Newswires

January 08, 2025 09:15 ET (14:15 GMT)

News Highlights: Top Global Markets News of the Day - Wednesday at 9 AM ET
Jobless claims fall to a nearly one-year low as Trump set to take office 
 

The number of people who applied for unemployment benefits in the first week of the new year fell to an 11-month low, the latest sign layoffs remain extremely low even as businesses cut back on hiring.

 
 S&P 500, Nasdaq Futures Edge Higher 
 

U.S. stock futures rose modestly and European markets made gains.

 
Fed Meeting Minutes to Shed Light on Rate-Cut Path in 2025 
 

Minutes from the meeting will be published at 2 p.m. Eastern on Wednesday.

 
Here's the real winter-storm effect on natural-gas prices and heating bills 
 

The recent rally in natural-gas prices raised an alarm among consumers suffering from a cold snap in much of the U.S. this week - but when it comes to household spending on the heating fuel this winter season, adequate domestic supplies are likely to cap price spikes for natural gas.

 
Eurozone Business Confidence Declines Again, Dragged by Industry 
 

Eurozone business sentiment declined further in December as industrial woes were exacerbated by political instability and the threat of tariffs from the U.S.

 
The 'Hidden Force' That Can Bring Mortgage Rates Down 
 

How home buyers could get a little break even if yields stay high.

 
Cocoa Farmers Uproot Their Plants Despite Record Prices 
 

Bad weather, failed government policies and a fast-spreading virus are reducing output from the world's top cocoa-growing countries.

 
Venture Capital Needs a New Math 
 

One fund sees a future for venture capital in smaller funding rounds, lower valuations and quicker exits than prevail today.

 
German Factory Orders Fall Again as Manufacturing Weakness Persists 
 

Manufacturing orders slumped in November, an additional signal of weakness of the sector that could be threatened further by tariffs proposed by the incoming U.S. administration.

 
French Consumers End 2024 in a Pessimistic Mood as Layoff Concerns Mount 
 

Confidence fell in December and households ended the year on a gloomy note as concerns around job cuts added to the country's enduring political deadlock.

(END) Dow Jones Newswires

January 08, 2025 09:15 ET (14:15 GMT)

U.S. Crude-Oil Stockpiles Seen Down for Seventh Straight Week

(This article was originally published Tuesday.)

By Anthony Harrup

U.S. crude-oil inventories likely fell for a seventh consecutive week, while gasoline and diesel stocks are seen rising from the week before, according to a survey by The Wall Street Journal.

Commercial crude stockpiles are expected to have fallen by 1 million barrels to 414.6 million barrels in the week ended Jan. 3, according to the average estimate of nine analysts and traders. Seven expect a decline and two predict an increase. Expectations range from a stock draw of 3 million barrels to a build of 2.8 million barrels.

Gasoline inventories are forecast to have risen by 500,000 barrels to 231.9 million barrels in an eighth consecutive weekly rise. Estimates for gasoline stocks range from an increase of 4.8 million barrels to a decrease of 3.2 million barrels.

Stocks of distillate fuels, mostly diesel, are seen up by 200,000 barrels at 123.1 million barrels. Forecasts range from a decline of 3.3 million barrels to an increase of 4 million barrels.

Refinery capacity use likely fell by 0.3 of a percentage point to 92.4%. Estimates for refinery runs range from a half percentage-point rise to a 1.3 percentage-point decline. Two analysts didn't make a forecast.

The inventory report from the Energy Information Administration is scheduled for release Wednesday at 10:30 a.m. EST.

 
                                    Crude  Gasoline Distillates Refinery Use 
   Commodity Research Group         -2.4     -1.0     -1.0       -0.6 
   Confluence Investment Management  1.0      3.0      4.0        0.5 
   Rystad Energy                     2.8     -3.2     -3.3       -1.3 
   Excel Futures                    -3.0      4.8      3.2       -0.5 
   Spartan Capital Securities       -1.6     -1.1     -2.8        n/f 
   Mizuho                           -2.0      2.0      2.0       -0.5 
   Price Futures Group              -2.0     -2.0     -2.0        unch 
   Ritterbusch and Associates       -1.5      3.7      3.0        0.4 
   Tradition Energy                 -0.3     -1.6     -1.0        n/f 
 
   AVERAGE                          -1.0      0.5      0.2       -0.3 
 

Note: Numbers in millions of barrels, with the exception of refinery use, which is in percentage points.

n/f = no forecast

unch = unchanged

Write to Anthony Harrup at anthony.harrup@wsj.com

(END) Dow Jones Newswires

January 08, 2025 09:14 ET (14:14 GMT)

Canada to Enforce Capital-Gains Tax Increase Without Implementing Legislation

By Paul Vieira

OTTAWA--To the ire of business groups, Canadian authorities intend to collect proceeds based on a higher capital-gains tax even though the Liberal government failed to pass implementing legislation before outgoing Prime Minister Justin Trudeau dissolved parliament.

Representatives for business owners argue the lack of legislation should prevent Canada's tax-collection agency from enforcing the measure, given the lack of legislation and the likelihood the current government is ousted in an election that must be held this year. Business executives, including those at Canadian tech company Shopify, had warned the policy change risked scaring away investment.

The Liberal government unveiled in April an increase in how much profit, or capital gain, realized in an asset sale is subject to tax. The measure stipulates that 66% of a realized capital gain is subject to tax, up from 50%, and that took effect in late June. Lawyers and financial advisers say clients sold assets ahead of that late June deadline to avoid that higher rate.

On Monday, in announcing his resignation, Prime Minister Justin Trudeau said he received approval from the country's Governor General to dissolve parliament until March 24 while Liberal Party members pick his successor. The dissolution means all pending legislation--including a bill to increase capital-gains taxes--was terminated, and must be reintroduced when parliament resumes.

Under Canada's parliamentary system, taxation measures are effective as soon as a minister introduces a so-called ways and means motion in the legislature. Legislation may be introduced at a later date.

An official at Canada's Department of Finance said authorities will enforce the higher capital-gains inclusion rate. Collection ceases only in the event that the government of the day abandons implementing the legislation, the official said.

"This is a fine kettle of fish," said David Rotfleisch, a Toronto-based tax lawyer. He said the current Liberal government could introduce retroactive tax legislation once parliament resumes.

That scenario appears unlikely, with all three main Canadian opposition parties saying they will topple the Liberal government, possibly under a new leader, when the legislature returns in late March. The Conservative Party holds a 20-point-plus lead in opinion polls over the incumbent Liberals, and in June said they opposed the capital-gains tax measure.

Tax lawyers and experts say it is common for measures to be enacted without legislation, although most of the time they tend to affect a small segment of taxpayers and focus on technical changes to tax law. The capital-gains tax increase, however, is a novel case because it affects a wide swath of taxpayers. The Liberal government expected the measure to raise about 20 billion Canadian dollars, or the equivalent of $14 billion, over a five-year period.

Kim Moody, president of advisory firm Moodys Tax, said he understands why Canada's tax authorities are proceeding with collection, citing parliamentary conventions. "In this case, I think they need to 'read the room' and adjust their policy accordingly," he said, noting there is a "high probability" the measure dies under a new Conservative government.

If the government reverses course, tax authorities would have to issue refunds to tax filers who paid the higher capital-gains inclusion rate, Rotfleisch said.

Canadian authorities "will collect billions in capital gains taxes, with no legislation authorizing it, until a government officially tells it to stop. This means that it could be a long time before any clarity is provided to taxpayers," said Dan Kelly, president of the Canadian Federation of Independent Business.

Kelly said tax collection should stop because of political developments, such as the resignation of Trudeau and his former finance minister, Chrystia Freeland, who introduced the capital-gains increase. She stepped down in a shock move, citing policy disagreements with Trudeau.

Benjamin Bergen, president of the Council of Canadian Innovators, said his members from the technology sector are angry because they scrambled to sell assets before late June to comply with a tax law that never came to pass.

"We find ourselves in an uncomfortable decision--they have scared off investment, they have created uncertainty," said Bergen, who once worked as an aide to former finance minister Freeland.

Write to Paul Vieira at paul.vieira@wsj.com

(END) Dow Jones Newswires

January 08, 2025 09:05 ET (14:05 GMT)

Jobless Claims Fell to Start 2025

By Matt Grossman

Fewer Americans filed for initial jobless benefits last week, according to the Department of Labor, a further sign that a softening labor market has continued to dodge a big uptick in job cuts.

The week through Jan. 4 brought 201,000 initial jobless claims, compared with 211,000 a week earlier. Economists polled by The Wall Street Journal had been forecasting 215,000 initial claims.

But the number of continued claims, a gauge of the size of the unemployed population, rose to 1.87 million in the week through Dec. 28, compared with 1.83 million the week before. The continued-claims figures lag the initial-claims data by a week.

Taken together, employment statistics have painted a softening job market over the past year, although the economy has not tumbled into a vicious cycle of accelerating layoffs.

Unemployment has risen to 4.2%, from 3.7% a year ago, and hiring has slowed across many key industries. But so far, companies that want to control labor costs have been doing so by pulling back on new recruiting--not by turning to pink slips.

Friday's monthly jobs report will give an updated picture of how job creation and unemployment finished 2024. Economists in The Wall Street Journal's survey have anticipated the unemployment rate held steady at 4.2% last month and that the economy added 155,000 net new jobs.

The weekly jobless-claims data were published a day earlier than usual ahead of Thursday's day of mourning for former president Jimmy Carter.

Write to Matt Grossman at matt.grossman@wsj.com

(END) Dow Jones Newswires

January 08, 2025 08:58 ET (13:58 GMT)

U.S. Hiring Kept Slowing at End of Year as Labor Market Loosens

By Joshua Kirby

Hiring in the private sector lost pace again last month, adding to signs of greater slack in a tight jobs market.

Private businesses added 122,000 jobs in December, down from 146,000 a month earlier and marking a second month of fewer new positions, according to the ADP National Employment report released Wednesday. Economists polled by The Wall Street Journal had expected 136,000 new jobs to be opened up in December.

"The labor market downshifted to a more modest pace of growth in the final month of 2024," said Nela Richardson, chief economist at ADP.

Salary gains also lost steam in December, with those staying in their jobs booking the slimmest pay rises in nearly three and half years. That offers some relief for Federal Reserve policymakers still wary of upward pressure on consumer prices from robust pay packets.

Slower hiring comes on the back of similar signs of growing slack in a labor market that has proved a strong one for workers in recent years. Fewer Americans quit their jobs in November, the latest data show, suggesting jobholders are seeing diminishing opportunities elsewhere. Unemployed white-collar workers in particular are struggling to find new roles, meanwhile, with more than 1.6 million searching for more than six months, according to research published earlier this month.

The services industry added the lion's share of the new jobs in December, ADP's report showed, with education & health services leading the way, followed by leisure & hospitality. The manufacturing industry by contrast shed jobs for a third month consecutively.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

January 08, 2025 08:50 ET (13:50 GMT)

Johnson & Johnson Gets FDA Fast-Track Designation for Posdinemab in Alzheimer's

By Colin Kellaher

Johnson & Johnson on Wednesday said it has won Food and Drug Administration fast-track designation for its proposed posdinemab treatment for Alzheimer's disease.

J&J is investigating the internally discovered tau-directed monoclonal antibody in a Phase 2b study of patients with early Alzheimer's.

The New Brunswick, N.J., pharmaceutical giant said posdinemab has shown potential in targeting disease-associated phosphorylated tau in cerebrospinal fluid from treated Alzheimer's patients, and in blocking the development and spread of tau aggregates in non-clinical models of the memory-robbing disease.

The FDA's fast-track program is designed to facilitate the development and expedite the review of treatments for serious or potentially life-threatening illnesses with high unmet medical needs.

The FDA last year granted fast-track designation to J&J's anti-tau active immunotherapy JNJ-2056.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

January 08, 2025 08:41 ET (13:41 GMT)

Fed's Waller Expects to Back Further Rate Cuts

By Matt Grossman

Federal Reserve governor Christopher Waller said Wednesday that he believes inflation is still trending lower, a backdrop that could allow the Fed to continue cutting interest rates this year.

Speaking in Paris at the Organization for Economic Cooperation and Development, Waller said that U.S. economic growth has remained solid over the past few quarters, but noted that the labor market softened in 2024. Falling inflation will likely mean that the Fed should adjust its stance to be less restrictive, Waller said.

"If the outlook evolves as I have described here, I will support continuing to cut our policy rate in 2025," Waller said, according to a published text of his remarks. He added that the scale and pace of those cuts is uncertain, noting that last month, his colleagues on the Fed's policy committee gave projections that ranged from no rate cuts to five rate cuts this year.

The central bank's rate reductions began with a large half-point cut in September, followed by two quarter-point cuts in November and December. But inflation has remained stubbornly above the Fed's target, leading some officials to signal the possibility of holding rates steady at the next meeting later this month.

Traders are convinced the Fed will pause its cuts for now, with bets in futures markets before Waller's speech reflecting a 95% probability that the benchmark interest rate will stay unchanged in January.

Waller observed that last year, much of the price increases seen in official figures came from industries such as housing, where costs are statistically inferred rather than directly measured. Prices for goods and services that statisticians measure directly, like clothes and restaurant meals, generally rose less last year, Waller said, a trend that he said gave him confidence in declining inflation pressures.

Waller acknowledged that new trade barriers under the Trump administration might reignite price increases, but said he expected the effect to be mild. "If, as I expect, tariffs do not have a significant or persistent effect on inflation, they are unlikely to affect my view of appropriate monetary policy," he said.

Write to Matt Grossman at matt.grossman@wsj.com

(END) Dow Jones Newswires

January 08, 2025 08:14 ET (13:14 GMT)

Eurozone Business Sentiment Declines Further -2-

The four regional reserve-bank presidents who are coming into voting seats on the Federal Open Market Committee this year could make for livelier and more contested policy decisions, Deutsche Bank economist Matthew Luzzetti tells WSJ. Chicago Fed President Austan Goolsbee is seen as one of the committee's most dovish voices, while St. Louis Fed President Alberto Musalem and Kansas City Fed President Jeffrey Schmid are seen as potential hawks. (Neither Musalem nor Schmid has voted on the committee before.) "With greater diversity there is a greater chance for dissents, especially because if inflation remains sticky and the labor market is weakening, it creates this tension in the Fed's dual mandate which doesn't make it obvious how the Fed should react," Luzzetti says. - Matt Grossman

Basis Points The minutes from the Federal Reserve's last meeting of 2024 will add further context to officials' thinking about the paths of the economy, interest rates, and inflation in the coming years. Policymakers lowered their interest-rate target after their Dec. 17-18 confab, while signaling a slow and gradual pace of rate cuts ahead. (Barron's) Australia's monthly inflation indicator edged higher in November , but stayed at the lower end of the Reserve Bank of Australia's target band, keeping alive hopes that the central bank will start cutting interest rates as early as February. The monthly consumer price index indicator rose 2.3% in the 12 months to November, up from a 2.1% rise in the 12 months to October, the Australian Bureau of Statistics said Wednesday. Economists had expected a rise of 2.2% on the year in November. Canada's long-running trade surplus with its closest neighbor widened late last year as exports again increased, helping narrow the country's global deficit for a third straight month. Canada's total merchandise-trade deficit came in at 323 million Canadian dollars, the equivalent of about $225.4 million, in November, Statistics Canada said Tuesday. That was the smallest deficit since February's surplus and below the C$900 million expected by economists, and comes after October's shortfall was revised down to C$544 million. The sharp rise in yields on U.K. government bonds, or gilts, in recent weeks is bad news for the government as it stokes fears about the state of public finances, Quilter Cheviot's Richard Carter says in a note. The prospect of rising inflation resulting from the incoming U.S. Trump administration's policies is leading to rising yields in the U.S., and consequently in the U.K. as well, he says. (DJN) About Us

WSJ Pro Central Banking brings you central banking news, analysis and insights from WSJ's global team of reporters and editors. This newsletter was compiled by markets reporter Vicky Ge Huan g in New York. Send your tips, suggestions and feedback to [vicky.huang@wsj.com].

This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

January 08, 2025 07:41 ET (12:41 GMT)

Eurozone Business Sentiment Declines Further

Eurozone Business Sentiment Declines Further By Vicky Ge Huang

Eurozone business sentiment declined further in December as industrial woes were exacerbated by political instability and the threat of tariffs from the U.S.

Also, manufacturing orders in Germany slumped in November, an additional signal of weakness of the sector that could be threatened further by tariffs proposed by the incoming administration of U.S. President-elect Donald Trump.

Elsewhere, U.S. mortgage rates have been moving against home buyers in recent weeks. But there is a sliver of hope on the horizon.

Top News Eurozone Business Confidence Declines Again, Dragged by Industry

The European Commission's Economic Sentiment Indicator fell to 93.7 from 95.6 in November, dipping further below its long-term average. Economists polled by The Wall Street Journal anticipated 95.6.

Confidence in industry took a particular hit in December, hampered by significant weakening in production expectations, order books and stocks, the commission said. The manufacturing sector suffered throughout 2024, driven by historically low output in the eurozone's largest economy, Germany. Factory orders there recorded a more-than 5% slump in November, data published separately on Wednesday said.

German Factory Orders Fall Again as Manufacturing Weakness Persists

Factory orders in November tumbled 5.4% compared with October , according to data published Wednesday by Germany's statistics agency Destatis, much weaker than a consensus of flat orders from economists' polled by The Wall Street Journal. New orders declined 1.5% between September and October.

The fall was mainly down to more large-scale orders for transport equipment-a grouping which includes aircraft, ships, trains and military vehicles-received in October, which weren't repeated in November, Destatis said.

French Consumers End 2024 in a Pessimistic Mood as Layoff Concerns Mount

French households ended the year on a gloomy note as concerns around job cuts added to the country's enduring political deadlock.

Confidence fell to 89 in December from 90 a month earlier on an index published Wednesday by statistics authority Insee, sliding further below the long-term average represented by a reading of 100. That was a little worse than the stable reading expected by economists, and marks the most pessimistic sentiment registered in 2024.

China Expands Consumer Subsidies to Boost Spending as Tariff Risk Looms

China is widening the scope of its consumer goods trade-in program this year, as Beijing intensifies efforts to convince cautious households to spend as rising external uncertainties threaten exports' ability to prop up economic growth.

The National Development and Reform Commission, China's top economic planner, said Wednesday that the government will include more products in its home appliance trade-in program in 2025, extending state subsidies to microwave ovens, water purifiers, dishwasher and rice cookers.

U.S. Economy The 'Hidden Force' That Can Bring Mortgage Rates Down

Freddie Mac's benchmark national average 30-year, fixed-rate mortgage is nearing 7% once again, a far cry from when it looked like it was heading below 6% back in the early fall.

Several things have driven rates back up, including rising long-term Treasury yields, fears about accelerating inflation and a shrinking number of expected Federal Reserve rate cuts. And it is unclear if any of those big factors will change in the near future, especially with swirling uncertainty about policies such as tariffs.

Yet there are also reasons to be somewhat, cautiously, optimistic. One big thing that could help fuel a move lower in rates-even without those big macroeconomic variables changing-would be a shift in what some have called the "hidden force" behind mortgage rates: The unusually wide gap between mortgage rates and Treasury yields.

Fewer Americans Quit Jobs in November

The share of workers who quit their jobs in November fell from a month earlier , a sign of weakening in the labor market in a survey that otherwise showed relatively little trend compared with previous months.

U.S. Services Sector Picks Up Pace Ahead of Trump Inauguration, but Inflation Fears Linger

U.S. services activity increased more than expected last month as the Federal Reserve trimmed borrowing costs again and firms prepared for a new administration in Washington.

The Institute for Supply Management said Tuesday that its purchasing-managers' index for the services sector increased to 54.1 in December from 52.1 in November, beating expectations for an uptick to 53.4. A reading above 50 in the ISM index points to expansion in activity. Still, the index remains below the level booked in October, suggesting services businesses remain wary ahead of the arrival of President-elect Donald Trump at the White House this month..

U.S. Trade Deficit Grew in November

The U.S. trade deficit increased in November as growth in imports outpaced the increase in America's exports.

Imports last month grew by 3.4% to $351.56 billion, while exports rose by 2.7% to $273.37 billion. That yielded a deficit of $78.19 billion, up by 6.2% from October. Economists polled by The Wall Street Journal had expected to see the deficit rise to $78.4 billion. (Dow Jones Newswires)

Financial Regulation U.S. Expands RealPage Price-Fixing Lawsuit to Include Six Big Landlords

The Justice Department is adding six major apartment landlords to its lawsuit against real-estate software company RealPage, expanding the scope of its allegations that the rent-setting algorithm enabled illegal price fixing.

These apartment owners used RealPage's rent-pricing algorithm to artificially inflate rents nationwide, the Justice Department alleged in an amended civil complaint filed on Tuesday.

Sixth Street Strikes Deal to Manage $13 Billion of Insurer's Assets

investment firm Sixth Street is forging a partnership with Northwestern Mutual to manage $13 billion of the insurer's assets, executives from the companies said. The money will primarily be invested in asset-based finance, a hot area that encompasses a swath of consumer lending, including mortgages, credit-card loans and auto loans.

JPMorgan Becomes Last U.S. Megabank to Ditch Climate Coalition

JPMorgan Chase said it would withdraw from a pandemic-era climate coalition , the last of the U.S. megabanks to do so as corporate America continues its broad pullback from ESG initiatives.

The Wall Street Journal previously reported that JPMorgan had started to consider whether to withdraw from the Net-Zero Banking Alliance. Members of the coalition had vowed to align "lending, investment and capital markets activities with net-zero greenhouse gas emissions" by 2050.

CFPB Bans Medical Bills From Credit Reports

Credit-reporting companies will be banned from including medical debt on credit reports , under a rule finalized by the Consumer Financial Protection Bureau.

The rule isn't slated to go into effect until March, after President-elect Donald Trump is sworn in.

Forward Guidance Wednesday (all times ET)

8:15 a.m.: ADP National Employment Report

8:30 a.m.: Unemployment Insurance Weekly Claims Report - Initial Claims

2 p.m.: Federal Open Market Committee meeting minutes and economic forecast

3 p.m.: Consumer Credit

Thursday (U.S. financial markets closed to honor former President Jimmy Carter)

9 a.m.: FRB Philadelphia President Patrick Harker speaks at NACD New Jersey Chapter Economic Forecast event

12:45 a.m.: Federal Reserve Bank of Richmond President Thomas Barkin speaks at VBA/VA Chamber Financial Forecast

1:30 p.m.: Federal Reserve Bank of Kansas City President Jeffrey Schmid speaks before the Economic Club of Kansas City

Research Still Too Early for Bank of Japan to Declare Inflation Victory

Japan's underlying inflation looks set to stay above the 2% target for most of 2025, but Capital Economics thinks it is too early to declare victory. CE's Marcel Thieliant notes that price gains remain driven by goods rather than services. Prices of services, which are far more labor-intensive than goods, rising less rapidly than in other advanced economies makes it less plausible that goods inflation reflects faster wage growth, he says. The most likely explanation is that it reflects the lingering effects of soaring import costs that will run their course. Until there is a sustained pickup in public services and rent inflation, which is barely rising, CE doubts the BOJ will lift rates to its forecast of 2% by 2030. It sees a risk that a premature hike could snuff out the nascent price recovery. - Fabiana Negrinochoa

Investment-Grade Corporate Bonds Credit Quality Weakens in December

Credit quality in investment-grade corporate bonds showed a weakening trend in December. Ratings firms upgraded bonds worth a net $18 billion, down from a net $98 billion upgrade in November and the $33 billion monthly average over the past 12 months, according to credit strategist Yuri Seliger of Bank of America. December's upgrades came from bonds with grades of A or better, meaning few investment-grade BBB-level bonds were recognized for an improving credit trend. Most upgrades were driven by companies in the media and entertainment, healthcare and telecom industries, Seliger notes. - Matt Grossman

New Fed Voters in 2025 Could Yield More Dissents

(MORE TO FOLLOW) Dow Jones Newswires

January 08, 2025 07:41 ET (12:41 GMT)

Italy Issues 18 Billion Euros in Dual-Tranche Bond Transaction, Gets Robust Demand

By Emese Bartha

Italy issued a total of 18 billion euros ($18.61 billion) in a dual-tranche government bond transaction on Wednesday, attracting very strong demand, said one of the joint bookrunner banks.

Italy sold 13 billion euros in a new August 2035-dated conventional bond, or BTP, with the orderbooks closing in excess of 142 billion euros, excluding joint lead manager interest, the same bank said. The spread on this bond was set at 7 basis points above the February 2035 BTP.

Italy also sold 5 billion euros in a new April 2046-dated green BTP, with the orderbooks closing in excess of 127 billion euros, excluding joint lead manager interest, the same bank said. The spread on this bond was set at 5 basis points above the September 2043 BTP yield.

January is the high season for syndicated issues in the eurozone as sovereigns kick off their annual funding programs. Syndicated transactions accompany scheduled auctions.

On Tuesday Belgium and Slovenia syndicated new bonds, while Portugal mandated banks for a new 10-year bond syndication.

Joint lead managers of the dual-tranche Italian issue were Banca Monte dei Paschi di Siena, BNP Paribas, Citi, Crédit Agricole CIB, NatWest Markets and UniCredit.

Write to Emese Bartha at emese.bartha@wsj.com

(END) Dow Jones Newswires

January 08, 2025 07:39 ET (12:39 GMT)

Novo Nordisk, Valo Health Expand Drug Discovery and Development Pact -- Update

By Dominic Chopping

Novo Nordisk expanded a deal with Valo Health to discover and develop treatments for obesity, type 2 diabetes and cardiovascular disease using human data and artificial intelligence.

The deal extends an agreement signed in 2023 and will see Valo become eligible for increased payments and funding.

Under the original deal, the companies agreed to develop up to 11 drug programs, primarily focused on cardiovascular disease, with Valo eligible to receive up to $2.7 billion in milestone payments, plus research and development funding and potential royalty payments.

The new agreement set out Wednesday expands the scope to put a stronger focus on obesity and type 2 diabetes and includes near-term payments to Valo of up to $190 million.

A further $4.6 billion in potential milestone payments will be made for up to nine new drug programs and Valo will also be eligible for more research and development funding and potential royalty payments.

The companies will continue to use Valo's drug discovery and development platform that uses patient data and AI to generate new insights and translate them into potential therapeutics.

"We have already begun to realize the potential of combining the capabilities of Valo and Novo Nordisk to advance multiple AI-powered, human-centric programs, and we believe this partnership will help Novo Nordisk fulfill our ambition to expand the number of new drug programs we bring to the clinic," said Marcus Schindler, executive vice president and chief scientific officer of Novo Nordisk.

The Danish pharmaceutical giant recently reported disappointing results of a closely watched clinical trial testing an experimental anti-obesity treatment that the company hoped would be its next big weight-loss product.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

January 08, 2025 07:34 ET (12:34 GMT)

Boston Scientific to Buy Rest of Bolt Medical for $443 Million

By Colin Kellaher

Boston Scientific has agreed to acquire the rest of Bolt Medical, the developer of an intravascular-lithotripsy, or IVL, laser-based platform for the treatment of coronary and peripheral artery disease, for $443 million.

Boston Scientific, which already owns 26% of Bolt, on Wednesday said the deal also includes payments of up to $221 million upon the achievement of certain regulatory milestones.

The Marlborough, Mass., medical-technology company initially developed the concept for the Bolt IVL system, which helped establish Bolt Medical in 2019.

Boston Scientific said intravascular-lithotripsy therapy represents one of the fastest-growing medical-device segments and addresses a significant unmet need for patients with complex calcified arterial disease through a minimally invasive approach.

The company said it expects to complete the transaction in the first half of 2025.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

January 08, 2025 07:33 ET (12:33 GMT)

News Highlights: Top Financial Services News of the Day - Wednesday at 7 AM ET
Lightsmith Group Backs Sea-Cargo Insurer Parsyl 
 

The firm is investing through its climate resilience-focused fund, joined by GLP Capital Partners and other participants.

 
Venture Capital Needs a New Math 
 

One fund sees a future for venture capital in smaller funding rounds, lower valuations and quicker exits than prevail today.

 
Blackstone Buying Stake in Accounting Firm Citrin Cooperman 
 

New Mountain Capital is selling its stake in accounting firm Citrin Cooperman to an investor group led by Blackstone, the first flip of an audit firm by a private-equity investor.

 
Italy's Banca Ifis Bids For Illimity Amid Sector Consolidation 
 

The takeover offer values the specialty lender at around $309 million as banking consolidation in the country heats up.

 
Sixth Street Strikes Deal to Manage $13 Billion of Insurer's Assets 
 

Northwestern Mutual intends to take a small minority stake in the investment firm.

 
Paychex to Acquire Competitor Paycor HCM 
 

Payroll-services company Paychex is acquiring rival Paycor HCM in a deal with an enterprise value of about $4.1 billion.

 
Your Fancy, New ETF Might Be a Little Too Fancy 
 

Exchange-traded funds have mostly been great investments, but they are getting too complex for their own good.

 
Financial Services Roundup: Market Talk 
 

Find insight on Banco BPM, Indonesian and Thai banks and more in the latest Market Talks covering financial services.

 
Private-Equity Veteran Launches New Venture to Fill Fundraising Shortfall 
 

Private-equity veteran Richard Lichter launched Causeway Equity Partners, looking to capitalize on the growing numbers of investment managers struggling to hit their fundraising targets.

 
ING to Focus on Organic Growth as Rivals Put Deals on the Table 
 

ING is sticking to its plans to grow organically in the markets where it already operates, even as several European rivals turn to mergers and acquisitions to expand.

(END) Dow Jones Newswires

January 08, 2025 07:15 ET (12:15 GMT)

News Highlights: Top Company News of the Day - Wednesday at 7 AM ET
Shell Warns on Earnings, Cuts Production Guidance 
 

The energy giant said it expects earnings from its core integrated gas division to fall significantly in the fourth-quarter compared with the previous one due to expiring hedging contracts.

 
U.K. Considers Conditional Approval for $35 Billion Synopsys, Ansys Deal 
 

The U.K. competition regulator said it could approve Synopsys's $35 billion purchase of Ansys after the companies offered to sell off business units to ease regulators' concerns.

 
Why Nvidia Needs to Appeal to a Bigger Crowd 
 

Investors are hyper-focused on data centers despite big new efforts in gaming, self-driving cars and robotics.

 
Amazon Plans to Invest at Least $11 Billion in Cloud and AI Infrastructure in Georgia 
 

The investment aims to meet the increased demand for advanced cloud infrastructure and compute power, driven by generative AI, it said.

 
Tencent Makes Biggest Buyback After Addition to Pentagon List 
 

China's largest public company by market capitalization spent the equivalent of about $193.3 million to buy back 4.05 million shares on Wednesday.

 
Lufthansa Plans to Hire 10,000 in 2025 
 

Deutsche Lufthansa said more than half of the hiring is to take place in Germany.

 
Samsung Expects Further Profit Growth Slowdown, Missing Estimates 
 

The world's largest maker of memory chips and smartphones said sluggish demand for conventional chips used in personal computers and mobile phones weighed on its memory business for the quarter.

 
LG Electronics Expects Quarterly Profit to Halve Amid Higher Logistics Costs 
 

The South Korean consumer-electronics giant forecast a 53% drop in fourth-quarter operating profit, as its television and auto-component businesses remained sluggish.

 
AMD Invests in Drug-Discovery Company Absci in Push to Sell AI Chips 
 

The $20 million deal gives the chip supplier a toehold in the life-sciences market, a strategy it plans to replicate in other industries.

 
Goodyear Plans to Sell Dunlop Brand for About $700 Million 
 

The Ohio-based tiremaker said it agreed to sell the Dunlop brand to Japan's Sumitomo Rubber Industries.

(END) Dow Jones Newswires

January 08, 2025 07:15 ET (12:15 GMT)

News Highlights: Top Global Markets News of the Day - Wednesday at 7 AM ET
 S&P 500, Nasdaq Futures Edge Higher 
 

U.S. stock futures rose modestly and European markets made gains.

 
Fed Meeting Minutes to Shed Light on Rate-Cut Path in 2025 
 

Minutes from the meeting will be published at 2 p.m. Eastern on Wednesday.

 
Eurozone Business Confidence Declines Again, Dragged by Industry 
 

Eurozone business sentiment declined further in December as industrial woes were exacerbated by political instability and the threat of tariffs from the U.S.

 
The 'Hidden Force' That Can Bring Mortgage Rates Down 
 

How home buyers could get a little break even if yields stay high.

 
Cocoa Farmers Uproot Their Plants Despite Record Prices 
 

Bad weather, failed government policies and a fast-spreading virus are reducing output from the world's top cocoa-growing countries.

 
Venture Capital Needs a New Math 
 

One fund sees a future for venture capital in smaller funding rounds, lower valuations and quicker exits than prevail today.

 
German Factory Orders Fall Again as Manufacturing Weakness Persists 
 

Manufacturing orders slumped in November, an additional signal of weakness of the sector that could be threatened further by tariffs proposed by the incoming U.S. administration.

 
French Consumers End 2024 in a Pessimistic Mood as Layoff Concerns Mount 
 

Confidence fell in December and households ended the year on a gloomy note as concerns around job cuts added to the country's enduring political deadlock.

 
China Expands Consumer Subsidies to Boost Spending as Tariff Risk Looms 
 

The move comes as Beijing intensifies efforts to convince cautious households to spend as rising external uncertainties threaten exports' ability to prop up economic growth.

 
Australia's Monthly Inflation Indicator Backs Case for Lower Rates 
 

Australia's monthly inflation indicator stayed at the lower end of the Reserve Bank of Australia's target band.

(END) Dow Jones Newswires

January 08, 2025 07:15 ET (12:15 GMT)

News Highlights: Top Energy News of the Day - Wednesday at 7 AM ET
Oil prices tick up after industry data shows fall in U.S. crude inventories 
 

Oil futures were flat to slightly higher Wednesday, with investors awaiting official data on U.S. inventories after an industry report was said to show a large drop in crude stocks but significant increases in gasoline and distillates.

 
Shell Warns on Earnings, Cuts Production Guidance 
 

The energy giant said it expects earnings from its core integrated gas division to fall significantly in the fourth-quarter compared with the previous one due to expiring hedging contracts.

 
The Billionaire Mining Magnate Who Bet Coal Had a Future-and Won Big 
 

The U.K. closed its last coal-powered plant, but 76-year-old Low Tuck Kwong ignored naysayers and built a fortune from the world's dirtiest fossil fuel.

 
ExxonMobil Earnings to Fall on Lower Oil Prices 
 

The change in gas prices, however, may boost earnings by as much as $400 million for the quarter, the company said..

 
Energy & Utilities Roundup: Market Talk 
 

Find insight on Shell, Galp, Phillips 66 and more in the latest Market Talks covering energy and utilities.

 
Phillips 66 to Buy EPIC NGL for $2.2 Billion 
 

Phillips 66 will buy EPIC NGL for $2.2 billion to help the Houston oil refiner grow its Permian midstream business.

 
Biden to Ban Drilling in Some Coastal Waters 
 

The ban is expected to invoke a decades-old law that could make it difficult for the incoming Trump administration to reverse.

 
Plug Power and Bloom Energy Stocks Jump on New Hydrogen Rules 
 

The Treasury Department issued new rules on Friday for companies trying to get tax breaks for making clean hydrogen.

 
Nuclear-Energy Stocks Gain After Easing of Hydrogen Tax-Credit Rules 
 

The final rule for clean-hydrogen production would allow some nuclear power plants that are at risk of retirement to produce the gas.

 
Natural Gas Stocks Have Momentum-and Cold Weather 
 

Structural changes, including growing export capacity, mean that U.S. gas prices could remain elevated for a while.

(END) Dow Jones Newswires

January 08, 2025 07:15 ET (12:15 GMT)

Delta Taps Uber as Rideshare Partner, Ending Longtime Deal with Lyft

By Sabela Ojea

Uber Technologies will become Delta Air Lines' exclusive rideshare and delivery partner in the U.S. this spring, bringing a partnership with rival Lyft to an end.

The San Francisco rideshare company said it will offer customers the opportunity to earn one to three Delta SkyMiles for each dollar spent on airport rides, premium rides or trip reservations with its drivers.

The partnership also offers a mile per dollar when spending at least $40 on Uber Eats restaurant and grocery orders. Uber said customers can sign up on a waiting list to be notified when account linking will be available

"This partnership creates more choice for customers to get to their destination in a way that works best for them," Delta Chief Executive Ed Bastian said.

The deal brings to a close Delta's seven-year deal with Lyft in the U.S. that allows Lyft users who have linked accounts with the airline to earn 2 miles for each dollar spent on airport rides.

Lyft wasn't immediately available for comment.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

January 08, 2025 07:12 ET (12:12 GMT)

Novo Nordisk, Valo Health Expand Drug Discovery and Development Pact

By Dominic Chopping

Novo Nordisk expanded a deal with Valo Health to discover and develop treatments for obesity, type 2 diabetes and cardiovascular disease using human data and artificial intelligence.

The deal extends an agreement signed in 2023 and will see Valo become eligible for increased payments and funding.

The Danish pharmaceutical giant recently reported disappointing results of a closely watched clinical trial testing an experimental anti-obesity treatment that the company hoped would be its next big weight-loss product.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

January 08, 2025 07:08 ET (12:08 GMT)

U.K. Competition Watchdog Considers Conditional Approval for $35 Billion Synopsys, Ansys Deal

By Edith Hancock

The U.K. competition regulator said it could approve chip design software group Synopsys's $35 billion purchase of Ansys after the companies offered to sell off business units to ease regulators' concerns.

The Competition and Markets Authority said Wednesday that there are reasonable grounds for it to let the deal go ahead with the concessions the companies have offered. It now has until March 5 to decide whether to accept the undertakings, but can extend this until May 6 under special circumstances.

The deal is also being looked at by the European Commission's antitrust regulator, which set a Jan. 10 deadline to decide whether to approve it or move to an in-depth investigation.

Both companies struck deals with Keysight to divest Synopsys's Optical Solutions Group and Ansys' PowerArtist software tool in recent months to secure regulatory approvals for the merger.

"We are very pleased that today the CMA has taken the important step of provisionally accepting our proposed remedies in Phase 1 rather than referring the transaction to Phase 2," a spokesperson for Synopsys said, adding that the company will continue to engage with the regulator as it wraps up the review process. The company expects to close its transaction in the first half of this year.

Synopsys agreed to buy Ansys in January 2024 in a deal that would broaden Synopsys's portfolio in simulation software for companies that design micro chips.

Write to Edith Hancock at edith.hancock@wsj.com

(END) Dow Jones Newswires

January 08, 2025 06:46 ET (11:46 GMT)

North American Morning Briefing: Investors Await Fed Minutes as Inflation Concerns Linger

OPENING CALL

Stock futures rose on Wednesday and Treasury yields held near Tuesday's highs as investors remained on alert for further signs of stubborn inflation or economic strength that could deter the Federal Reserve from further interest-rate cuts.

Minutes due from the Fed's December meeting are expected to shed light on the rate-cut path in 2025 .

"Already the Fed had warned there is likely to be only two reductions this year, down from four forecast in September, but speculation is brewing that this could be reduced to just one if price pressures persist," Hargreaves Lansdown said.

On the earnings front, Albertsons is due to report quarterly results before the opening bell, a few weeks after its $20 billion sale to rival Kroger collapsed.

Jefferies is set to report after the close, offering an early pointer into how investment banks fared last quarter.

Stocks to Watch

Cal-Maine Foods reported stronger-than-expected quarterly profit after the bird flu outbreak killed off flocks, sending egg prices higher. Shares rose nearly 4%.

ExxonMobil said it expects falling oil prices to drag on fourth-quarter earnings, while higher gas prices will provide a boost.

Flutter Entertainment cut financial estimates for 2024, saying the NFL season saw the highest rate of favorites winning in nearly 20 years. Shares fell.

Maplebear was selected for inclusion in the S&P MidCap 400 index. Shares went up 4.8%.

Shares in Moderna rose 7% and were poised to extend Tuesday's rally, which came after officials confirmed the first American death caused by the H5N1 strain of avian flu.

Nvidia shares rallied following a rollercoaster start to the week. The stock closed at a record high Monday, ahead of a keynote speech by Chief Executive Jensen Huang, before sliding 6% Tuesday.

Richardson Electronics reported higher sales and a smaller loss in its fiscal second quarter. Shares fell 6.4%.

Samsung Electronics forecast a continued slowdown in quarterly earnings. Nonetheless, shares rallied, up 3.4% in South Korea.

Sana Biotechnology released what it assessed as positive data from a study of its in-development treatment for type 1 diabetes. Shares rose 266%.

Watch For:

Weekly Jobless Claims; Wholesale Inventories for Nov; ADP National Employment Report for Dec; EIA Weekly Petroleum Status Report

Today's Top Headlines/Must Reads:

-The 'Hidden Force' That Can Bring Mortgage Rates Down

-The Billionaire Mining Magnate Who Bet Coal Had a Future-And Won Big

-Xi Jinping Muzzles Chinese Economist Who Dared to Doubt GDP Numbers

MARKET WRAPS

Forex:

The dollar rose after strong economic data Tuesday firmed expectations that the Fed will take a cautious approach to cutting interest rates.

Job openings increased to a six-month high in November while the ISM services index rose more than forecast in December and showed a sharp rise in input prices.

The data reduced the market probability of a March rate cut by the Fed, ING said.

The minutes of the Fed's December meeting when it signalled a slower pace of rate cuts could "throw a bit more support behind the dollar."

Sterling was among the worst performing G-10 currencies in the past week due to concerns about a weaker U.K. economic outlook, Ebury said.

Reports that major retailers are expecting to raise prices or reduce hiring due to the U.K. government's plans to raise employer national insurance tax is leading to some jittery trading, according to Ebury.

The yuan was under fresh pressure , touching 16-month lows versus the dollar as strong U.S. data lends support to USD and uncertainty about trade tariffs persists.

Bitcoin fell after failing to hold recent gains above the key $100,000 level.

Bonds:

Higher Treasury yields are driven by rising term premia rather than market expectations of Fed policy rates, Danske Bank Research said, and with Donald Trump's inauguration less than two weeks away, markets are focused on policies, tariffs and deficits.

"Long-end U.S. rates are rising due to a significant repricing of term premia. We attribute these movements to market supply concerns, likely linked to the fiscal outlook."

Danske expects the Fed to continue quarterly cuts in interest rates from March, forecasting modestly lower long-end yields in 2025.

Energy:

Oil rose, supported by a stronger physical market and concerns over Russian and Iranian flows.

A survey by The Wall Street Journal showed U.S. crude stockpiles are expected to have fallen by 1 million barrels last week, a positive sign on demand trends in the world's top oil consumer.

Meanwhile, OPEC production fell in December, according to Bloomberg and Reuters surveys.

Still, further price gains seem to be capped by prospects of an oversupplied market this year and uncertainties around global consumption.

"We are holding to our forecast for Brent crude to average $76/bbl in 2025, down from an average of $80/bbl in 2024," BMI said.

South Sudan

South Sudan has resumed exports of its Dar blend crude oil after neighbouring Sudan lifted a force majeure and the completion of repairs to a key export pipeline to the Red Sea. Oil Minister, Puot Kang Chol said exports resumed on Jan. 8 after improved security measures.

Metals:

Gold rose as traders awaited more cues on the path of interest rates in the U.S.

Futures were supported by central-bank buying, uncertainties around U.S. tariff plans under Trump and geopolitical tensions.

Meanwhile, the Chinese central bank added to its gold reserves for a second month in a row in December.

"Gold ETFs have become less important for the gold price trend," Commerzbank Research said.

"Gold purchases by central banks have become much more influential over the past three years."

Markets are now waiting for the release of the Fed's meeting minutes later on Wednesday and Friday's jobs report.

Base metal prices were firmer, with copper and aluminum both up.

"The base metals complex edged higher as prices tested the robust support levels, suggesting a lack of selling pressure and a likely continuation of sideways price moves," Sucden Financial said.

According to market watchers, industrial metals have had a broadly muted start to 2025 amid uncertainties around the path of China's economic recovery, persistent geopolitical tensions and the threat of U.S. tariffs on Chinese goods looming on the market's outlook.

Aluminum, Alumina Outlook

The path ahead for alumina and aluminum is expected to diverge following the Lunar New Year holiday that begins end-January, HSBC said.

Aluminum and alumina futures have slumped since the start of 2025 as a supply shortage eases, with demand falling in the traditional off-season before the Lunar New Year and as new capacity ramps up. Going forward, aluminum should rebound, with demand-supply dynamics staying favorable.

The alumina supply situation should continue to improve, however, weighing on prices that remain much higher than the average over recent years.

TODAY'S TOP HEADLINES

Shell Warns of Significantly Lower Integrated Gas Earnings, $1.3 Billion Emissions-Permit Hit

Shell said it expects to report significantly lower earnings in its integrated gas division and warned of a $1.3 billion charge due to emissions-permit payments in the fourth quarter.

The London-based energy giant said that within its core integrated gas division, expiring hedging contracts are expected to result in significantly lower earnings compared with the previous quarter, when the division reported $2.87 billion in adjusted earnings.

Tencent Makes Biggest Buyback Since 2006 After Addition to Pentagon List

Tencent made its biggest one-day buyback of shares in almost two decades in a move that analysts said should support the share price, after the Chinese tech giant's appearance on a Pentagon list triggered one of its heaviest selloffs in years.

China's largest public company by market capitalization spent the equivalent of about $193 million to buy back 3.93 million shares on Tuesday, a filing to the Hong Kong bourse showed. That marked its biggest one-day take-back of shares since 2006, according to data from financial platform Wind Information, stepping up a long-running program. Tencent started repurchasing more aggressively last year, with its spending on buybacks more than doubling from 2023 to roughly $14.4 billion.

Samsung Expects Further Profit Growth Slowdown, Missing Estimates

Samsung Electronics forecast a continued slowdown in quarterly earnings growth that widely missed market expectations, admitting that its core memory-chip and smartphone businesses remained lackluster in the fourth quarter.

Sluggish demand for conventional chips used in personal computers and mobile phones weighed on its memory business for the quarter, with earnings also dented by rising costs for research and development as well as early investments in expanding advanced-chip processing capability, Samsung said in a statement Wednesday.

LG Electronics Expects Quarterly Profit to Halve Amid Higher Logistics Costs

LG Electronics forecast a 53% drop in fourth-quarter operating profit, missing market expectations for earnings growth, as its television and auto-component businesses remained sluggish while it continued to struggle with higher logistics costs.

The South Korean consumer-electronics giant on Wednesday said unexpected surges in shipping costs throughout the second half of 2024 weighed on profitability despite record annual revenue.

Eurozone Business Confidence Declines Again, Dragged by Industry

Eurozone business sentiment declined further in December as industrial woes were exacerbated by political instability and the threat of tariffs from the U.S.

The European Commission said Wednesday that its Economic Sentiment Indicator fell to 93.7 from 95.6 in November, dipping further below its long-term average. Economists polled by The Wall Street Journal anticipated 95.6.

Cocoa Farmers Uproot Their Plants Despite Record Prices

(MORE TO FOLLOW) Dow Jones Newswires

January 08, 2025 06:27 ET (11:27 GMT)

North American Morning Briefing: Investors Await -2-

Cocoa was the best-performing commodity in 2024, outpacing even bitcoin, but that hasn't stopped farmers from abandoning the crop.

Farmers in the top cocoa-producing region of the world are reseeding their lands because of a mixture of bad weather, failed government policies-many of which were aimed at helping farmers-and a fast-moving virus that has ravaged their plants.

China Expands Consumer Subsidies to Boost Spending as Tariff Risk Looms

China is widening the scope of its consumer goods trade-in program this year, as Beijing intensifies efforts to convince cautious households to spend as rising external uncertainties threaten exports' ability to prop up economic growth.

The National Development and Reform Commission, China's top economic planner, said Wednesday that the government will include more products in its home appliance trade-in program in 2025, extending state subsidies to microwave ovens, water purifiers, dishwasher and rice cookers.

Los Angeles Wildfires Prompt Evacuations for Tens of Thousands

Rapidly expanding wildfires forced tens of thousands of residents to evacuate their Los Angeles homes on Tuesday and forecasters warned that a potentially life-threatening windstorm could accelerate them overnight.

Approximately 30,000 people were under evacuation orders, Los Angeles Fire Department Chief Kristin Crowley said at a press conference Tuesday night. The LAFD ordered residents in affluent Pacific Palisades to leave the area immediately as firefighters sought to slow the spread of a nearly 3,000-acre blaze.

Israel, Hezbollah Fighting Stretches a Cease-Fire Deal to the Limit

An Israel-Lebanon cease-fire that calmed months of cross-border bloodshed is being strained as the two sides accuse each other of violations and the U.S. races to make sure the deal holds.

Israel still has troops on the ground in Lebanon and has continued to regularly strike Hezbollah infrastructure and weapons depots. In a complaint to the United Nations Security Council, Lebanon accused Israel of some 800 land and air attacks since the cease-fire came into effect on Nov. 27.

Write to gareth.mcpherson@wsj.com

TODAY IN CANADA

Earnings:

Nothing major scheduled

Economic Indicators (ET):

Nothing major scheduled

Stocks to Watch:

CIBC Former President and CEO John Hunkin Passed Away Earlier This Week

Hut 8 Continues to Focus on High-Impact Projects in Both AI and Bitcoin Mining; Miner Shipments Expected to Begin in Jan, Marking Step in Driving Avg Fleet Efficiency Dn to 19.9 Joules/Terahash; 205 MW Vega Project Advancing on Track for 2Q Energization; Site Infrastructure Upgrades Continue to Advance on Schedule, Positioning to Launch Initial Fleet Upgrade in 1Q

Oaktree Capital Invests in Miami-Based Apollo Group, Which Provides Hospitality Management Services for Cruise Industry

Expected Major Events for Wednesday

05:00/JPN: Dec Consumer Confidence Survey

07:00/GER: Nov Retail Trade

07:00/GER: Nov Manufacturing orders

07:00/GER: Nov Manufacturing turnover

07:45/FRA: Dec Consumer confidence survey

07:45/FRA: Nov Foreign trade

07:45/FRA: Nov Balance of payments

12:00/US: 01/03 MBA Weekly Mortgage Applications Survey

13:15/US: Dec ADP National Employment Report

13:30/US: 01/04 Unemployment Insurance Weekly Claims Report - Initial Claims

15:00/US: Nov Monthly Wholesale Trade

15:30/US: 01/03 EIA Weekly Petroleum Status Report

17:00/US: 01/03 EIA Weekly Natural Gas Storage Report

20:00/US: Nov Consumer Credit

23:30/JPN: Nov Provisional Labour Survey - Earnings, Employment & Hours Worked

All times in GMT. Powered by Kantar Media and Dow Jones.

Expected Earnings for Wednesday

Acuity Brands Inc (AYI) is expected to report $3.32 for 1Q.

Albertsons Companies Inc (ACI) is expected to report $0.59 for 3Q.

AngioDynamics Inc (ANGO) is expected to report $-0.22 for 2Q.

Caldwell Partners International Inc (CWL.T) is expected to report for 1Q.

Costco Wholesale Corp (COST) is expected to report.

FRMO Corp (FRMO) is expected to report for 2Q.

Franklin Covey Co (FC) is expected to report $0.15 for 1Q.

Greenbrier Cos Inc (GBX) is expected to report $1.16 for 1Q.

Jefferies Financial Group Inc (JEF) is expected to report $0.97 for 4Q.

MSC Industrial Direct Co - A Share (MSM) is expected to report $0.74 for 1Q.

Penguin Solutions Inc (PENG) is expected to report $0.02 for 1Q.

PriceSmart Inc (PSMT) is expected to report $1.31 for 1Q.

Pure Cycle Corp (PCYO) is expected to report for 1Q.

Radius Recycling Inc (RDUS) is expected to report $0.58 for 1Q.

Saratoga Investment Corp (SAR) is expected to report $0.94 for 3Q.

Simply Good Foods (SMPL) is expected to report $0.40 for 1Q.

UniFirst Corp (UNF) is expected to report $2.09 for 1Q.

Powered by Kantar Media and Dow Jones.

ANALYST RATINGS ACTIONS

Acadia Healthcare Raised to Overweight From Sector Weight by Keybanc

Advanced Energy Raised to Buy From Hold by Needham

American States Water Cut to Underweight From Equal-Weight by Wells Fargo

American Water Works Raised to Equal-Weight From Underweight by Wells Fargo

Apple Cut to Sell From Neutral by MoffettNathanson

Bank of America Raised to Buy From Neutral by UBS

BioXcel Therapeutics Cut to Underperform From Buy by B of A Securities

Bloomin' Brands Cut to Equal-Weight From Overweight by Barclays

Bridge Investment Cut to Neutral From Overweight by JP Morgan

Calif Water Svc Grp Raised to Overweight From Equal-Weight by Wells Fargo

Cardinal Health Raised to Outperform From In-Line by Evercore ISI Group

Carvana Raised to Outperform From Sector Perform by RBC Capital

Cboe Global Markets Cut to Underweight From Neutral by JP Morgan

Central Garden & Pet Cut to Hold From Buy by Argus Research

Cleveland-Cliffs Raised to Buy From Sell by GLJ Research

Clorox Raised to Equal-Weight From Underweight by Wells Fargo

Correction to Hartford Financial Rating on Monday

Cousins Properties Raised to Neutral From Underperform by Mizuho

Datadog Cut to Hold From Buy by Truist Securities

Dentsply Sirona Cut to In-Line From Outperform by Evercore ISI Group

Digital Realty Raised to Buy From Neutral by UBS

Dine Brands Global Cut to Equal-Weight From Overweight by Barclays

Dine Brands Global Cut to Neutral From Buy by UBS

Disney Raised to Buy From Neutral by Redburn Atlantic

Dow Cut to Neutral From Overweight by Piper Sandler

Dutch Bros Raised to Overweight From Equal-Weight by Barclays

Erasca Raised to Buy From Neutral by B of A Securities

Essential Utilities Cut to Equal-Weight From Overweight by Wells Fargo

Excelerate Energy Cut to Underweight From Neutral by JP Morgan

Federated Hermes Cut to Neutral From Overweight by JP Morgan

Forge Global Holdings Cut to Underweight From Neutral by JP Morgan

Freeport-McMoRan Cut to Market Perform From Outperform by Bernstein

Inari Medical Cut to Equal-Weight From Overweight by Wells Fargo

Inari Medical Cut to Hold From Buy by Canaccord Genuity

Inari Medical Cut to Market Perform From Outperform by William Blair

Inari Medical Cut to Neutral From Outperform by Baird

Instil Bio Raised to Buy From Hold by Jefferies

Intl Flavors & Fragrances Raised to Buy From Hold by Argus Research

Kilroy Realty Cut to Neutral From Outperform by Mizuho

Kraft Heinz Cut to In-Line From Outperform by Evercore ISI Group

Laboratory Corp. Raised to Outperform From In-Line by Evercore ISI Group

LPL Financial Holdings Raised to Overweight From Neutral by JP Morgan

LTC Properties Raised to Market Outperform From Market Perform by JMP Securities

Mondelez Cut to Equal-Weight From Overweight by Wells Fargo

Old Dominion Freight Cut to Neutral From Positive by Susquehanna

P10 Raised to Overweight From Neutral by JP Morgan

Palo Alto Networks Cut to Sell From Neutral by Guggenheim

Principal Financial Raised to Overweight From Neutral by JP Morgan

Prosperity Bancshares Raised to Neutral From Underperform by B of A Securities

Quaker Houghton Cut to Neutral From Overweight by Piper Sandler

Raymond James Cut to Neutral From Overweight by JP Morgan

Ready Capital Cut to Neutral From Buy by B. Riley Securities

RingCentral Cut to Underweight From Equal-Weight by Wells Fargo

Robinhood Markets Raised to Neutral From Underweight by JP Morgan

Ross Stores Cut to Market Perform From Outperform by Bernstein

Royal Gold Raised to Buy From Hold by Jefferies

Sabra Healthcare REIT Raised to Market Outperform From Market Perform by JMP Securities

Saia Cut to Neutral From Positive by Susquehanna

Shake Shack Raised to Overweight From Equal-Weight by Barclays

Snowflake Raised to Overweight From Equal-Weight by Wells Fargo

Tesla Cut to Neutral From Buy by B of A Securities

Tyler Technologies Cut to Equal-Weight From Overweight by Wells Fargo

Ulta Beauty Raised to Neutral From Sell by B. Riley Securities

Unum Group Cut to Neutral From Overweight by JP Morgan

Victory Capital Cut to Neutral From Buy by B. Riley Securities

Vornado Raised to Outperform From Neutral by Mizuho

XPO Cut to Neutral From Positive by Susquehanna

Zoom Video Communications Raised to Equal-Weight From Underweight by Wells Fargo

ZoomInfo Technologies Cut to Equal-Weight From Overweight by Wells Fargo

This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

January 08, 2025 06:27 ET (11:27 GMT)

Shell Warns of Significantly Lower Integrated Gas Earnings, Cuts Production Guidance -- 2nd Update

By Adam Whittaker

Shell warned of significantly lower earnings in its integrated gas division and cut production guidance across its oil and gas segments.

The London-based energy giant said Wednesday that it expects earnings from its core integrated gas division to fall significantly in the fourth-quarter compared with the previous one due to expiring hedging contracts. The division reported $2.87 billion in adjusted earnings in the third quarter.

In a trading update ahead of its earnings due on Jan. 30, Shell said it expects to book a noncash post-tax impairment of between $1.5 billion and $3.0 billion owing to macroeconomic and operational changes.

The impairment includes an up to $1.2 billion charge in its renewables and energy solutions division. Cash flow from operations is also expected to take a $1.3 billion hit due to emission-permit payments in Germany and the U.S., which are normally payable in the fourth-quarter, the company said.

While the trading update showed weakness across Shell's oil, gas and power divisions, the results aren't expected to impact shareholder returns in 2025 or dampen Shell's broader outlook, RBC Capital Markets analysts Biraj Borkhataria and Adnan Dhanani wrote.

However, the analysts did lower their fourth-quarter net income estimates to $3.9 billion from $5.1 billion due to the weaker-than-anticipated update.

Alongside the warning of an earnings hit, Shell lowered and narrowed it integrated gas production outlook for the last three months of 2024 to between 880,000 and 920,000 oil-equivalent barrels owing to scheduled maintenance at a facility in Qatar. It had previously guided for 900,000 to 960,000 oil-equivalent barrels a day.

Volumes of liquefied natural gas--LNG--are expected to be between 6.8 million and 7.2 million metric tons after the company narrowed its guidance range. This compares with the 7.5 million tons it produced in the previous quarter.

Upstream production--the extraction of crude oil and natural gas--is expected to be 1.79 million to 1.89 million oil-equivalent barrels a day, compared with the previous guided range of 1.75 million to 1.95 million oil-equivalent barrel a day.

According to analysts at Jefferies, lower oil prices and refining margins should lead to lower earnings across the energy sector but higher gas prices should soften the hit. They forecast a 3% earnings decline for Shell and its European oil-and-gas peers in the fourth quarter compared with the previous one.

Within its chemicals and products division, Shell said it continues to expect an unchanged refining margin of $5.50 a barrel and for earnings to be significantly lower owing to seasonality.

It also expects seasonality to result in significantly lower quarterly earnings in its marketing division.

In European midday trading, shares were down 36.5 pence, or 1.4%, at 2,580.50 pence but are up 0.4% over the past 12 months.

Write to Adam Whittaker at adam.whittaker@wsj.com

(END) Dow Jones Newswires

January 08, 2025 06:22 ET (11:22 GMT)