By Tim McLaughlin and Laila Kearney

(Reuters) – President Donald Trump’s oversight of an increasingly unreliable U.S. power grid requires swift action, he said this week, but there is no easy fix for one of the grid’s most complex and troubled areas: long-distance transmission lines.

Trump’s National Energy Emergency declaration and executive orders detail a long list of interconnected problems dogging an electric grid vulnerable to fuel shortages, soaring demand, and an increasing number of wild weather events.

“There’s clearly a recognition of the need to increase energy production broadly in the United States and do it with whatever resources necessary,” said Spencer Pederson, a top executive at the National Electrical Manufacturers Association.

Trump’s initial moves could help to some degree: The emergency declaration directs agencies to scour their books for laws and regulations that could be used to speed approval and permitting for projects like transmission, and overcome regulatory obstacles that have long hampered big projects.

The executive orders, part of a slew of actions Trump signed his first day in office to accelerate broader energy production, seek to streamline permitting procedures that historically have taken years or even decades.

Morgan Stanley (NYSE:MS), in a note this week to investors, said Trump’s actions “could improve the speed of transmission infrastructure permitting and environmental reviews.”

Big obstacles remain. Pederson noted a shortage of large electrical transformers and skilled workers, and added that the U.S. grid’s overseas supply chain is still adjusting to being reoriented away from China, a move that began during the first Trump administration.

Also, some doubt that Trump’s executive actions can penetrate an entrenched web of local, state and regional regulators who have strong political incentives to hold down spending for electric customers, said Kent Chandler, a former chairman of Kentucky’s Public Service Commission who teaches a class on public utility regulation at Yale Law School.

Power lines spanning multiple states have been repeatedly blocked due to broad local resistance to what some view as unsightly or environmentally worrisome infrastructure projects.

Shon Hiatt, Director of USC Marshall’s Business of Energy Transition initiative, said Trump’s emergency declaration could prove useful for speeding up transmission projects on public lands, but that overcoming local and state actors could require an Act of Congress.

“It’s not like there’s public lands going across the entire country where this needs to happen,” Hiatt said.

DATACENTER BOOM

The grid’s vulnerability has intensified since Trump’s first term, with booming power demand from datacenters for artificial intelligence and cryptocurrency along with manufacturing and EV adoption, utility executives, regulators and trade groups say.

The grid’s capacity of long-distance transmission lines would need to quintuple over the next decade to handle that big surge in power demand outlined in the U.S. Energy Department’s latest state of the grid report.

“The clear message from (Trump) is that it’s time to really put a heavier foot on the gas pedal and get things moving,” said Larry Gasteiger, executive director of WIRES, a trade association for transmission line companies.

Making that happen would be good news not just for fossil fuel-fired power, but also for hundreds of renewable energy projects – like solar and wind farms – that have struggled for access to the grid.

Christina Hayes, executive director of Americans for a Clean Energy Grid, said one of the most promising parts of Trump’s executive order, titled Unleashing American Energy, is a directive to develop recommendations for Congress for interstate energy infrastructure.

She said that “could potentially lead to meaningful reforms in siting and permitting procedures.”

“Western states are likely to see the most immediate impact from these changes, given the concentration of federal lands in the region,” Hayes said.

Catie Hausman, a University of Michigan economics professor, has studied how some public utilities have blocked transmission buildout for renewables to protect the economic viability of their incumbent gas and coal power plants. She does not expect Trump’s executive actions to make those turf battles disappear.

“There have been so many impediments to building long-distance transmission lines,” Hausman said. “It’s hard to even know where to start.”

Investing.com — Moody’s (NYSE:MCO) Ratings has upgraded the long-term foreign currency and local currency issuer ratings of the Government of Argentina from Ca to Caa3. The outlook for the country has also been changed from stable to positive.

This upgrade is a reflection of the government’s successful policy shift which has facilitated fiscal and monetary adjustments, helping to stabilize the economy and external finances. This has reduced the likelihood of a credit event. However, considerable risks remain concerning the country’s ability to cover upcoming external debt payments. These risks could stem from the removal of capital and exchange controls or from negative shocks leading to a credit event with substantial losses for bondholders.

The positive outlook indicates potential for further rating improvements as Argentina continues its macroeconomic adjustment. A smooth transition to a more open capital account would be consistent with higher ratings.

At the same time, Moody’s has withdrawn Argentina’s short-term foreign currency and local currency issuer ratings, both previously at Not-Prime (NP), its foreign currency and local currency senior unsecured ratings, previously at Ca, and its foreign currency senior unsecured shelf program, previously at (P)Ca, for business reasons. The country’s local and foreign currency ceilings remain at B3 and Caa1 respectively.

The ratings upgrade was supported by Argentina’s improved credit fundamentals over the past year, due to effective policy adjustments that stabilized the macroeconomic environment. President Javier Milei’s administration, which took office on December 10, 2023, implemented decisive fiscal adjustments and measures to halt monetary financing, which have been effective in addressing economic imbalances.

These measures led to a drastic improvement in the fiscal accounts, driven by widespread spending cuts, resulting in a substantial reduction in the government debt burden. The government debt is projected to continue to decline, moving towards 50% of GDP by 2026.

The fiscal adjustment allowed the central bank to adopt a restrictive monetary policy stance, which helped to reduce inflation from very high levels. After peaking at 25.5% in December 2023, monthly inflation fell to single digits in March 2024 and has consistently slowed, projected to be around 40% in 2025.

Argentina’s external liquidity has increased due to a tax amnesty that brought nearly $20 billion in assets held abroad, and measures to attract additional foreign currency inflows, allowing the authorities to gradually build up international reserves.

However, as Argentina moves to the next phase of the macroeconomic adjustment period, involving the removal of capital and exchange controls, new challenges could emerge that could compromise the progress made to date.

The positive outlook is based on the government’s continued progress on its macroeconomic stabilization program. The possibility of Argentina entering into a new program with the International Monetary Fund (IMF) would further support the country’s external liquidity position. This would help anchor domestic and foreign investors’ sentiment, allowing the sovereign to regain external market access and diversify funding sources.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

NEW YORK (Reuters) – Bank of America will be engaging with President Donald Trump’s administration and Congress on regulations that the bank said can lead to it exiting banking relationships with a customer, a spokesperson said on Friday.

Trump on Thursday singled out JPMorgan Chase (NYSE:JPM) and Bank of America specifically as debanking customers. The two banks on Thursday denied they made banking decisions based on politics.

“We take this issue very seriously,” a BofA spokesperson said. “We will be engaging with the administration and Congress regarding the extensive government regulations that sometimes result in requirements to exit relationships.”

(Reuters) – Wall Street banks are preparing to sell a big portion of debt holdings in social media platform X, the Wall Street Journal reported on Friday, citing people familiar with the matter.

Bankers at Morgan Stanley (NYSE:MS) have contacted investors ahead of next week’s planned sale of up to $3 billion in debt that lenders like Bank of America and Barclays (LON:BARC) granted Elon Musk in order to finalize his 2022 acquisition of the business that was formerly known as Twitter, the report added.

The banks are looking to sell senior debt at 90 to 95 cents on the dollar and retain more-junior holdings, as per the report.

Morgan Stanley did not immediately respond to a Reuters request for comment.

Investing.com – U.S. stocks were lower after the close on Friday, as losses in the Oil & Gas, Technology and Industrials sectors led shares lower.

At the close in NYSE, the Dow Jones Industrial Average declined 0.32%, while the S&P 500 index fell 0.29%, and the NASDAQ Composite index fell 0.50%.

The best performers of the session on the Dow Jones Industrial Average were Walmart Inc (NYSE:WMT), which rose 1.01% or 0.95 points to trade at 94.76 at the close. Meanwhile, Walt Disney Company (NYSE:DIS) added 1.01% or 1.12 points to end at 112.16 and Verizon Communications Inc (NYSE:VZ) was up 0.92% or 0.36 points to 39.54 in late trade.

The worst performers of the session were NVIDIA Corporation (NASDAQ:NVDA), which fell 3.12% or 4.60 points to trade at 142.62 at the close. Honeywell International Inc (NASDAQ:HON) declined 1.84% or 4.15 points to end at 221.51 and American Express Company (NYSE:AXP) was down 1.39% or 4.53 points to 321.34.

The top performers on the S&P 500 were Nextera Energy Inc (NYSE:NEE) which rose 5.20% to 72.83, Welltower Inc (NYSE:WELL) which was up 3.41% to settle at 136.75 and Lululemon Athletica Inc (NASDAQ:LULU) which gained 3.14% to close at 400.03.

The worst performers were Texas Instruments Incorporated (NASDAQ:TXN) which was down 7.52% to 185.52 in late trade, CF Industries Holdings Inc (NYSE:CF) which lost 7.50% to settle at 88.10 and Microchip Technology Inc (NASDAQ:MCHP) which was down 5.34% to 56.39 at the close.

The top performers on the NASDAQ Composite were Nvni Group Ltd (NASDAQ:NVNI) which rose 195.30% to 4.40, Evaxion Biotech AS (NASDAQ:EVAX) which was up 65.66% to settle at 6.03 and PMGC Holdings Inc (NASDAQ:ELAB) which gained 56.57% to close at 3.10.

The worst performers were Golden Star Acquisition Corp (NASDAQ:GODN) which was down 67.38% to 2.91 in late trade, Next Technology Holding Inc (NASDAQ:NXTT) which lost 53.95% to settle at 1.40 and Singularity Future Technology Ltd (NASDAQ:SGLY) which was down 38.26% to 1.63 at the close.

Rising stocks outnumbered declining ones on the New York Stock Exchange by 1484 to 1285 and 100 ended unchanged; on the Nasdaq Stock Exchange, 1670 rose and 1632 declined, while 138 ended unchanged.

Shares in Golden Star Acquisition Corp (NASDAQ:GODN) fell to all time lows; losing 67.38% or 6.01 to 2.91.

The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was down 1.13% to 14.85.

Gold Futures for February delivery was up 0.45% or 12.41 to $2,777.41 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in March fell 0.08% or 0.06 to hit $74.56 a barrel, while the March Brent oil contract rose 0.17% or 0.13 to trade at $78.42 a barrel.

EUR/USD was up 0.76% to 1.05, while USD/JPY fell 0.07% to 155.95.

The US Dollar Index Futures was down 0.56% at 107.26.

By Andrew Chung

(Reuters) – President Donald Trump’s administration asked the U.S. Supreme Court on Friday to put on hold planned arguments in a bid by fuel producers to challenge California’s standards for vehicle emissions and electric cars under a federal air pollution law. 

The new Republican administration also made similar requests in three other cases involving the actions of federal agencies, giving an early indication that it will take a fresh look at a number of legal issues before the court and potentially change positions from Trump’s Democratic predecessor Joe Biden. 

The expected changes in the government’s position may be a closer ideological fit for the Supreme Court’s 6-3 conservative majority, which includes three justices appointed by Trump.

The dispute over California vehicle standards centers on an exception granted to that state in 2022 by the U.S. Environmental Protection Agency during Biden’s presidency to national vehicle emission standards set by the agency under the landmark Clean Air Act anti-pollution law. 

Though states and municipalities are generally preempted from enacting their own limits, Congress let the EPA waive the preemption rule to allow California to set certain regulations that are stricter than federal standards. 

In asking the Supreme Court to pause the case, Acting Solicitor General Sarah Harris said in a filing, “After the change in administration, EPA’s acting administrator has determined that the agency should reassess the basis for and soundness of the 2022 reinstatement decision.”

The EPA’s action reinstated a waiver for California to set its own tailpipe emissions limits and zero-emission vehicle mandate through 2025, reversing a 2019 decision during Trump’s first term in office rescinding the waiver.

Valero’s Diamond Alternative Energy and related groups challenged the reinstatement of California’s waiver, arguing that the decision exceeded the EPA’s power under the Clean Air Act and inflicted harm on their bottom line by lowering demand for liquid fuels. 

The U.S. Court of Appeals for the District of Columbia Circuit threw out the lawsuits, finding that Valero and the states lacked the necessary legal standing to bring their claims. 

Harrison told the Supreme Court that the EPA’s reassessment of the matter “could obviate the need for this court to determine” whether the challengers have legal standing. 

The Supreme Court has taken a skeptical view toward expansive authority for federal regulatory agencies, and has restricted the powers of the EPA in some important rulings in recent years. 

In June, the court blocked the EPA’s “Good Neighbor” rule aimed at reducing ozone emissions that may worsen air pollution in neighboring states. In 2023, the court hobbled the EPA’s power to protect wetlands and fight water pollution. In 2022, it imposed limits on the agency’s authority under the Clean Air Act to reduce coal- and gas-fired power plant carbon emissions.

On Monday, his first day back in office, Trump said in an executive order that he was seeking the repeal of a new waiver granted to California in December by the EPA allowing the state to end the sale of gasoline-only vehicles by 2035. That rule has been adopted by 11 other states.

Trump said the EPA should terminate “where appropriate, state emissions waivers that function to limit sales of gasoline-powered automobiles.”

Investing.com – The S&P 500 notched a two-week winning streak despite closing lower Friday after giving up gains following a fresh intraday record high as investors digested more corporate earnings and economic data.

At 4:00 p.m. ET (21:00 GMT), the S&P 500 index fell 0.3% but had earlier hit a fresh record high of 6,128.18. The NASDAQ Composite fell 0.5%, and the Dow Jones Industrial Average slipped 140 points, or 0.3%, while 

All three major averages are on track to post their second positive week, with the S&P 500 posting a record high, after President Donald Trump said he would “demand that interest rates drop immediately” as he addressed world leaders in Davos, Switzerland. 

Quarterly corporate results continue

Verizon Communications (NYSE:VZ) stock rose nearly 1% after the telecom major reported its best quarterly wireless subscriber growth in five years.

American Express (NYSE:AXP) stock fell 1.4% despite the financial giant reporting a 12% jump in fourth-quarter profit, as more consumers swiped cards during the holiday season for travel and online shopping.

Boeing (NYSE:BA) stock fell 1.4% after the aircraft manufacturer said it will post a bigger-than-anticipated loss of around $4 billion in its most recent quarter, as it grappled with a prolonged strike, charges related to US government projects and expenses linked to a slew of job cuts.

Texas Instruments (NASDAQ:TXN) stock dropped 7.5% after the analog chipmaker forecast first-quarter profit below estimates, as it grapples with an inventory buildup in its key automotive and industrial markets.

Twilio (NYSE:TWLO) stock soared 20% after the cloud communications software maker announced that it expects adjusted earnings to come in at the top range of guidance for the fourth quarter and unveiled positive guidance for the next couple of years through 2027.

Meta (NASDAQ:META) hits record high on AI optimism, intuitive Machines wins $2.5M Nasa contract

Meta Platforms Inc (NASDAQ:META) hit a record intraday high on Friday after unveiling spending plans to invest about $60 billion to $65 billion in capital expenditure this year as it builds out its AI infrastructure. 

Intuitive Machines Inc (NASDAQ:LUNR), meanwhile, won a $2.5M contract from Nasa to advance lunar logistics handling and offloading, and surface cargo as well as mobility solutions.

University of Mich. consumer sentiment falls; Fed meeting next week

The Michigan Consumer Sentiment Index, fell to 71.1 in January, down from 74.0 a month earlier, marking the decline in six months.

The data comes ahead of next week’s Federal Reserve policy-setting meeting, and the future path of interest rates.

The US central bank is widely expected to hold interest rates unchanged on Wednesday, with Fed officials expected to largely disregard any inflationary effects stemming from tariffs under Donald Trump’s administration, as such impacts are viewed as one-time price level increases rather than persistent inflationary pressures, Goldman Sachs analysts said in a research note.

Earlier Friday, the Bank of Japan raised interest rates by 25 basis points, marking the third hike by the central bank since it began scaling back its ultra-loose monetary policy in early-2024.

(Peter Nurse, Ayushman Ojha contributed to this article.)

Investing.com – Brazil stocks were lower after the close on Friday, as losses in the Financials, Electric Power and Consumption sectors led shares lower.

At the close in Sao Paulo, the Bovespa declined 0.03%.

The best performers of the session on the Bovespa were Companhia Siderurgica Nacional (BVMF:CSNA3), which rose 5.09% or 0.40 points to trade at 8.26 at the close. Meanwhile, Cogna Educacao SA (BVMF:COGN3) added 3.79% or 0.05 points to end at 1.37 and Usinas Siderurgicas de Minas Gerais SA USIMINAS Pref (BVMF:USIM5) was up 1.55% or 0.08 points to 5.23 in late trade.

The worst performers of the session were Automob Participações SA (BVMF:AMOB3), which unchanged 0.00% or 0.00 points to trade at 0.31 at the close. Cvc Brasil ON (BVMF:CVCB3) declined 2.73% or 0.05 points to end at 1.78 and LWSA SA (BVMF:LWSA3) was down 2.73% or 0.09 points to 3.21.

Rising stocks outnumbered declining ones on the B3 Stock Exchange by 475 to 453 and 64 ended unchanged.

Shares in Automob Participações SA (BVMF:AMOB3) unchanged to all time lows; unchanged 0.00% or 0.00 to 0.31.

The CBOE Brazil Etf Volatility, which measures the implied volatility of Bovespa options, was up 4.30% to 28.63.

Gold Futures for February delivery was up 0.46% or 12.81 to $2,777.81 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in March fell 0.05% or 0.04 to hit $74.58 a barrel, while the March US coffee C contract rose 0.83% or 2.85 to trade at $346.80 .

USD/BRL was down 0.18% to 5.91, while EUR/BRL rose 0.50% to 6.20.

The US Dollar Index Futures was down 0.56% at 107.26.

Investing.com — U.S. energy companies have reduced the number of operating oil and natural gas rigs for the third consecutive week, reaching the lowest level since December 2021, according to a report released by energy services firm Baker Hughes (NASDAQ:BKR) on Friday.

The oil and gas rig count, a preliminary indicator of future production, dropped by four to 576 in the week leading up to January 24. The decline this week brings the total rig count down by 45, or 7% lower than the same period last year, Baker Hughes reported.

The firm also reported that the number of oil rigs decreased by six to 472 this week, marking the lowest count since December 2021. Meanwhile, the count of gas rigs saw a slight increase, rising by one to 99.

In the Permian Basin, the largest oil-producing shale basin in the U.S. located in West Texas and eastern New Mexico, the rig count dropped by six to 298 in the week leading up to January 24. This count is the lowest since February 2022, and the six-rig decrease marks the largest weekly drop since August 2023.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com — Zoetis Inc remains a standout in the struggling animal health sector, benefiting from its pricing power and portfolio of irreplaceable therapeutics, according to a Piper Sandler survey.

While macroeconomic challenges persist, which includes stagnant veterinary visits and hiring difficulties, Zoetis (NYSE:ZTS) is gaining market share and is well-positioned to meet its growth target.

“We think we’re coming close to an inflection point where less negative visits will turn positive, but we don’t yet have confidence we’re six months away,” Piper analyst said.

Products such as Librela, despite regulatory scrutiny, continue to see strong veterinary support.

Piper Sandler highlighted ongoing headwinds for the broader sector, with market volume growth potentially delayed until late 2025 or early 2026. Labor shortages and limited consumer tolerance for price increases are further dampening growth prospects.

Zoetis is Piper Sandler’s only overweight-rated stock in the sector. “We believe it has a number of therapeutics that cannot be replaced and can see price increases but even they will have challenges in the current macro environment”