The latest Market Talks covering Energy and Utilities. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
1433 ET - TD Cowen weighs in on Monday's investor presentation by WSP Global. Analyst Michael Tupholme says the global engineering and services firm reiterated the significant opportunity across power and energy "supported by broad structural demand drivers beyond the AI & data center build-out." Importantly, he notes management stressed that "growth is not dependent on any single demand driver." Tupholme says WSP reaffirmed it's on track to achieve its overall 2027 financial targets including a 40% surge in net revenue and a 50% rise in adjusted Ebitda, all versus 2024 levels. (adriano.marchese@wsj.com)
1424 ET - Doubling Canada's electricity supply and introducing more clean energy could offer significant benefits for the economy, new economic modeling suggests. A report from New Economy Canada and the Canadian Chamber of Commerce compares an electrified-economy with a business-as-usual future based on current policies and measures. It finds that leaning into electrification could add a cumulative C$3 trillion to the economy by 2050 and support 1.6 million additional jobs by that year, while delivering C$5 in economic benefits for every C$1 invested in the power sector versus business as usual. (robb.stewart@wsj.com; @RobbMStewart)
1134 ET - Saudi Arabia leads major Gulf stocks lower Tuesday, with the Tadawul All Share Index falling 1.2%. Qatar's QE Index loses 1.1%, Abu Dhabi's benchmark index declines 0.3% and the Dubai Financial Market General Index slips 0.2%. Risks from the Middle East conflict remain elevated despite recovering regional oil flows. S&P Global Market Intelligence says its base case no longer assumes a clear end to the war, with Gulf exports likely to fluctuate as security conditions affect ships' willingness to transit the Strait of Hormuz. It expects only gradual improvement through 2027, with energy, freight, insurance and logistics costs remaining elevated. (farhan.rafid@wsj.com)
1019 ET - Sterling shows little reaction after U.K. Prime Minister Andy Burnham announced plans to reform pensions in a speech Tuesday, as widely expected. From 2030 the government will adjust the triple lock on pensions, which ensures state pensions rise in line with average earnings, inflation or 2.5%, whichever is highest. Instead pensions will rise every year in line with inflation, or 2.5%. Burnham scrapped the earnings element, saying state pensions would hold their value "relative to earnings over time." He also pledged to build a national care service, create a public body to invest in the electricity grid and strengthen control of water companies. Sterling falls 0.2% to $1.3222 and is flat at 0.8573 per euro, both little changed from levels before the speech. (renae.dyer@wsj.com)
1005 ET - U.K. utilities shares edge lower as investors react to Prime Minister Andy Burnham's proposal for a new public body to invest in Britain's electricity grid, AJ Bell's Russ Mould writes. Reports before market open Tuesday suggested GB Grid would increase competition for new grid projects. Prime Minister Burnham confirmed the plans in his afternoon address to the ruling Labour Party's annual conference Tuesday. The FTSE 100 utilities sector fell 1.2% at the open, before paring losses to trade down 0.15%. "While the market reaction suggests this is not considered to be an existential threat just yet, there will be concern that this is the first step on the road to renationalisation of the electricity network," Mould says. (josephmichael.stonor@wsj.com)
0926 ET - The restart of the East-West pipeline in Saudi Arabia and the resumption of Red Sea oil exports has crude oil futures down 2% to $90.74 a barrel. This and oil tanker movement seen on the Strait of Hormuz are weighing on crude, although sentiment that any major developments in the U.S.-Iran conflict will wait until after November's midterm elections is expected to limit downward momentum, says Ritterbusch and Associates in a note. Brent crude falls 1.9% to $103.24 a barrel. (kirk.maltais@wsj.com)
0505 ET - TotalEnergies' updated strategy largely met expectations, J.P. Morgan's Matthew Lofting writes in a note. The French energy major positioned its portfolio integration and diversification as a way of capturing value throughout the cycle, and during geopolitical disruption, he says. Overall, TotalEnergies' long-term fundamentals are well placed, he adds. Shares are down 1.2% at 79.03 euros. (adam.whittaker@wsj.com)
0245 ET - TotalEnergies gave near-unprecedented visibility of its growth plan, Barclays analyst Lydia Rainforth writes in a note after the French energy major's capital markets day. The plan through 2035 is supported by projects across its upstream business and growth in its integrated power unit, she says. The free cash flow growth that the plan will deliver is not reflected in the share price, she adds. The company is targeting upstream production growth of more than 3% a year to 2030 and then between 2% and 3% growth over 2031 to 2035. Shares closed Monday at 80 euros. (adam.whittaker@wsj.com)
2016 ET - Oil rises amid the ongoing deadlock in U.S.-Iran ceasefire talks. "Iran and the U.S. remain far apart over a ceasefire agreement and the reopening of the Strait of Hormuz," NAB's Sally Auld says in commentary. "Tehran said it was standing by a proposal rejected by President Trump, although Iranian Foreign Minister Abbas Araghchi was reportedly still due to meet mediators in New York," the group chief economist adds. The Strait of Hormuz is a key waterway through which one-fifth of the world's oil is transported. Front-month WTI crude oil futures are 1.0% higher at $93.52 a barrel, while front-month Brent crude oil futures are up 1.1% at $106.41 a barrel.
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