MARKET MOVEMENTS:
--Brent crude oil is up 0.5% to $76.55 a barrel.
--European benchmark gas is down 2.1% to EUR44.57 a megawatt-hour.
--Gold futures are up 0.7% to $2,661.60 a troy ounce.
--LME three-month copper futures are up 0.2% to $9,065.50 a metric ton.
TOP STORY:
Wildfires Are Making Investors Nervous About Los Angeles Area Utility Again
Residents in and around Los Angeles are praying for safety from wildfires sweeping the area. Investors in Edison International are mostly hoping the company's equipment didn't start any of the fires.
The Southern California electric utility's stock price was slow to react on Tuesday when the infernos first started breaking out. But on Wednesday, the shares started taking a big hit, falling 10% on the day.
OTHER STORIES:
U.S. Companies and Investors in Japan Are at Risk From U.S. Steel Backlash
The 1980s economic vibes are back. Japanese stocks scaled new heights in 2024. And the U.S. just stopped a Japanese acquisition of an American industrial icon on national-security grounds.
The Biden administration's blocking of Nippon Steel's acquisition of U.S. Steel isn't only misguided. It has also rattled Tokyo and risks straining relations with one of America's closest allies in Asia.
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Polestar Retail Sales Rise in 4Q, Sees Strong 2025 Momentum
Polestar said its retail sales grew in the fourth quarter after seeing its order intake surge, creating a strong momentum for 2025.
The Swedish electric-car maker on Thursday said that it sold 12,256 cars in the fourth quarter, up 5.3% from the year-ago period, as a result of its growing model line-up.
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Westinghouse CEO Patrick Fragman to Step Down
Westinghouse Electric President and Chief Executive Patrick Fragman is stepping down after more than five years running the nuclear reactor equipment manufacturer.
The company, jointly owned by uranium miner Cameco and Brookfield Asset Management, said Thursday Fragman plans to leave at the end of March to spend more time in Europe with his family. He will continue to support Westinghouse after that to help with the handover to a new CEO.
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Norway Sells Entire Stake in Aker Solutions
The Norwegian state sold its 6.1% stake in Aker Solutions for $84.5 million through a placing to institutional investors.
Cecilie Myrseth, Norway's minister of trade and industry, said the sale coincides with the state's goal to achieve the highest possible return over time within sustainable limits.
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Hudbay Lifts Stake in Arizona Sonoran Copper With C$19.9 Mln Investment
Hudbay Minerals will boost its stake in copper explorer Arizona Sonoran Copper with a 19.9 million Canadian dollars ($13.9 million) investment that will help advance a copper project in Arizona.
Arizona Sonoran said the Canadian mining company agreed to subscribe for roughly 11.9 million shares in a private placement at a price of C$1.68 apiece. The investment will see Hudbay's stake rise from 2.1% currently to just shy of 10%.
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Nordex Group Gets Several Turbine Orders in Germany
Nordex Group said Thursday that it received several orders for its turbines in Germany for an undisclosed sum.
The German company said wind and solar park developer UKA ordered 80 turbines from the Delta4000 series for a total of 540 MW.
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Thyssenkrupp Subsidiary Buys Sustainability Management Platform Waves
Thyssenkrupp Materials Services said that it has acquired Waves, a Luxembourg-based provider of sustainability management platforms.
The Thyssenkrupp company said the acquisition would help it expand the range of its sustainability products.
Waves helps companies calculate and manage their environmental, social and governance indicators, and allows companies to monitor performance in real time, Thyssenkrupp Materials Services said.
MARKET TALKS:
Shell Able to Maintain Shareholder Returns in 2025 Unlike Peers -- Market Talk
1337 GMT - Shell will be able to maintain its share buyback rate and continue delivering returns to shareholders even if the price of oil drops significantly, UBS analysts write. The London-based energy giant has the safest buyback record in the sector given its low dividend break-even point of $36 a barrel, the analysts write. If oil prices were to significantly deteriorate, which the analysts don't expect, then Shell would be the last in the sector to cut buybacks, they write. Shares trade up 1.4% at 26.16 pounds. (adam.whittaker@wsj.com)
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Europe's Gas Price Retreats Further -- Market Talk
1133 GMT - European natural-gas prices fall in midday trade, with the benchmark Dutch TTF contract down 2.7% to 44.20 euros a megawatt-hour from over 50 euros just a week ago. "[The] TTF market is experiencing a phenomenal reversal over the last week, which is illustrating the strength of funds positioning in the price formation," Rabobank's energy strategist Florence Schmit says. "The price retreat of around 10% on the week on an improved weather outlook is signalling that last week's rally might have been overdone." The market is currently adjusting to the loss of some gas volumes from Russia after a transit deal with Ukraine expired on Dec. 31. Meanwhile, EU gas storage is now less than 70% full--a level that is below the five-year average and that could pose challenges for the upcoming summer injection season. (giulia.petroni@wsj.com)
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Vestas Has Prospects For Higher U.S. Volumes Despite Trump Uncertainty -- Market Talk
1133 GMT - Vestas has prospects for higher volumes in the U.S., despite increased uncertainty from the Donald Trump presidency, Jyske Bank's Janne Vincent Kjaer writes. Vestas was hit hard by challenges in the service business in 2024, which, combined with Trump's election victory, has given rise to concerns about growth prospects. The market seems to be factoring in a severe slowdown in the U.S. with Trump putting an end to the expansion of wind power. "However, we do not expect it to be quite that bad." Vestas has a record-high order book in the U.S. which extends all the way into 2027, Kjaer says. Jyske rates Vestas at buy with a 170 Danish kroner price target. Shares trade 0.2% higher at 96.94 kroner. (dominic.chopping@wsj.com)
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Repsol Shares to Rise on Earnings Momentum and Share Buybacks -- Market Talk
1044 GMT - Repsol shares look set to rise as refining margins rebound, UBS analysts write. The Spanish energy major's stock has fallen 12% in the past six months and investors fail to account for higher gas prices and Repsol's earnings momentum, the analysts write. The analysts increase their earnings per share forecasts by 17%, putting them 8% ahead of consensus expectations. Repsol shares could be boosted by buybacks worth around 800 million euros in 2025, a UBS forecast that is nearly 150 million euros ahead of consensus expectations. A strong balance sheet and asset sales across should also boost shares, they write. UBS upgrades the stock's rating to buy from neutral, and increases its target price to 13 euros from 11.5 euros. Shares trade up 2.1% at 12.04 euros.(adam.whittaker@wsj.com)
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Palm Oil Drops Amid Indonesia's Export Uncertainties -- Market Talk
1015 GMT - Palm oil ended lower amid export uncertainties in Indonesia. The continuing concerns surrounding Indonesia's B40 biodiesel mandate and its measures to restrict exports of used cooking oil add to market unease, Kenanga Futures says in a research note. However, the forecast of declining palm oil inventories in Malaysia may provide some support and limit further downside pressure, it says. Investors will pay attention to Malaysia's official December production and exports data due Friday. The Bursa Malaysia Derivatives contract for March delivery closed 59 ringgit lower at 4,295 ringgit a ton. (sherry.qin@wsj.com)
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Eni's Limited Room to Surprise Investors Could Cap Share-Price Rise -- Market Talk
1003 GMT - Eni's share price has been boosted by asset sales and buybacks but this means there is now limited room for positive surprises, analysts at UBS write. Since mid-June, Eni shares have outperformed peers by 8% but it will be increasingly hard for the oil major to beat market expectation. This could cap its share-price growth, the analyst write. Investors are unwilling to place high-value on green-energy investments and the absence of future oil price rises means Eni's earnings per share momentum might be stalling. UBS downgrades the stock's rating to neutral from buy. Shares trade down 0.1% to 13.66 euros. (adam.whittaker@wsj.com)
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Oil Slips Amid Stronger Dollar, U.S. Fuel Stocks Build -- Market Talk
0909 GMT - Oil prices are edging lower in early trade after falling more than 1% in the previous session due to a stronger U.S. dollar and rise in U.S. fuel stockpiles. Brent crude is down 0.1% to $76.10 a barrel, while WTI falls 0.2% to $73.21 a barrel. "From a technical perspective, crude oil [WTI] is now in the medium-term bullish consolidation zone and should remain there above the $72.85pb support," Swissquote Bank's senior analyst Ipek Ozkardeskaya says in a note to clients. Prices had a strong start to 2025, supported by colder temperatures boosting heating fuel consumption and worries over Iranian and Russian supplies. Still, broader concerns of an oversupplied market this year and uncertainties over Chinese growth limit the upside. (giulia.petroni@wsj.com)
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Vestas Investors Spooked by Trump's Anti-Wind Rhetoric -- Market Talk
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01-09-25 0924ET