CenterPoint Energy misses profit estimate on higher costs
The country's electrical grids have been facing an onslaught of extreme weather and ballooning demand from electrification of industries and the technology sector's data center build out amid an artificial intelligence boom, prompting utilities to seek rate increases to upgrade and pay for power infrastructure.
CenterPoint's operations and maintenance costs increased 5.5% to $715 million during the quarter ended June 30.
The company provides electricity and natural gas to more than 7 million customers across Indiana, Louisiana, Minnesota, Mississippi, Ohio and Texas.
It also raised its 10-year capital expenditure plan through 2030 by $500 million to $53 billion to cater to an anticipated surge in power demand from data centers.
"This year alone we have increased our capital investment plan by $5.5 billion, including the $500 million increase," said CEO Jason Wells.
Power demand from U.S. data centers is expected to nearly triple in the next three years and consume as much as 12% of the total electricity produced, according to a study by Lawrence Berkeley National Laboratory.
CenterPoint's net income fell about 13% to $198 million.
It posted an adjusted profit per share of 29 cents during the quarter, compared with analysts' average estimate of 30 cents, according to data compiled by LSEG.
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BBC News
24 minutes ago
- BBC News
Trump's global tariffs 'victory' may come at a high price
In April Donald Trump stunned the world by announcing sweeping new import tariffs – only to put most on hold amid the resulting global financial months later, the US president is touting what he claims are a series of victories, having unveiled a handful of deals with trading partners and unilaterally imposed tariffs on others, all without the kind of massive disruptions to the financial markets that his spring attempt least, so worked to reorder America's place in the global economy, Trump is now promising that the US will reap the benefits of new revenue, rekindle domestic manufacturing, and generate hundreds of billions of dollars in foreign investment and that turns out to be the case – and whether these actions will have negative consequences – is still very much in is clear so far, however, is that a tide that was (gently) turning on free trade, even ahead of Trump's second term, has become a wave crashing across the globe. And while it is reshaping the economic landscape, it hasn't left the kind of wreckage in its wake that some might have predicted - though of course there is often a lag before impact is fully seen. What's more, for many countries, this has all served as a wake up call - a need to remain alive to fresh so, whilst the short term result might be - as Trump sees it - a victory, the impact on his overarching goals is far less certain. As are the long-term repercussions, which could well pan out rather differently for Trump - or the America he leaves behind after his current term. The '90 deals in 90 days' deadline For all the wrong reasons, 1 August had been ringed on international policymakers' calendars. Agree new trading terms with the US by then, they'd been warned – or face potentially ruinous White House trade adviser Peter Navarro predicted "90 deals in 90 days" and Trump offered an optimistic outlook on reaching agreements, the deadline always appeared to be a tall order. And it the time the end of July rolled around, Trump had only announced about a dozen trade deals – some no more than a page or two long, without the kind of detailed provisions standard in past negotiations. The UK was first off the blocks, perhaps inevitably. Trump's biggest bugbear is, after all, America's trade deficit, and trade is in broad balance when it comes to the the baseline 10% applied to most British goods may initially have raised eyebrows, it provided a hint of what was to follow – and in the end came as a relief compared to the 15% rate applied to other trading partners such as the EU and Japan, with whom the US has larger deficits; $240bn and $70bn respectively last year even those agreements came with strings attached. Those countries that weren't able to commit to, say, buying more American goods, often faced higher Korea, Cambodia, Pakistan - as the list grew, and tariff letters were fired off elsewhere, the bulk of American imports are now covered by either an agreement or a presidential decree concluded with a curt "thank you for your attention to this matter". Capacity to 'damage' the global economy Much has been revealed as a result of the good news. The wrangling of the last few months means the most painful of tariffs, and recession warnings, have been dodged. The worst fears – in terms of tariff levels and potential economic fallout (for the US and elsewhere) - have not been realised. Second, the agreement of tariff terms, however unpalatable, reduced much of the uncertainty (itself wielded by Trump as a powerful economic weapon) for better - and for better, in the sense that businesses are able to make plans, investment and hiring decisions that had been paused may now be resumed. Most exporters know what size tariffs their goods face – and can figure out how to accommodate or pass on the cost to growing sense of certainty underpins a more relaxed mood in financial markets, with shares in the US notably gaining. But it's for the worse, in the sense that the typical tariff for selling into the US is higher than before – and more extreme than analysts predicted just six months may have hailed the size of the agreement of the US with the EU – but these are not the tariff-busting deals we equated with tearing down trade barriers in previous greatest fears, the warnings of potential disaster, have receded. But Ben May, Director of global macro forecasting at Oxford Economics, says that US tariffs had the capacity to "damage" the global economy in several ways."They are obviously raising prices in the US and squeezing household incomes," he says, adding that the policies would also reduce demand around the world if the world's largest economy ends up importing fewer goods. Winners and losers: Germany, India and China It's not just about the size of tariff, but the scale of trading relationship with the US. So while India potentially faces tariffs of over 25% on its exports to the US, economists at Capital Economics reckon that, with US demand accounting for just 2% of that nation's gross domestic product, the immediate impact on growth could be news is not so good for Germany, though, where the 15% tariffs could knock more than half a percentage point off growth this year, compared to what was expected earlier in the due to the size of its automotive sector - unhelpful for an economy that may be teetering on the brink of recession. Meanwhile, India became the top source of smartphones sold in the US in the last few months, after fears of what may lie in store for China prompted Apple to shift the other hand, India will be mindful that the likes of Vietnam and the Philippines – which face lower tariffs when selling to the US – may become relatively more attractive suppliers in other the board, however, there's relief that the blow, at least, is likely to be less extensive than might have been. But what has been decided already points to longer-term ramifications for global trading patterns and alliances the element of jeopardy introduced into a long-established major relationship with the US, lent added momentum to the UK's pursuit of closer ties with the EU – and getting a trade deal with India over the many countries, this has served as a wake up call - a need to remain alive to fresh alliances. A very real political threat for Trump? As details are nailed down, the implications for the US economy become clearer in the late spring there actually benefitted from a flurry of export sales, as businesses rushed to beat any higher tariffs imposed on American goods. Economists expect that growth to lose momentum over the rest of the year. Tariffs that have increased from an average of 2% at the beginning of the year to around 17% now have had a notable impact on US government revenue – one of the stated goals of Trump's trade policy. Import duties have brought in more than $100bn so far this year - about 5% of US federal revenue, compared to around 2% in past years. Treasury Secretary Scott Bessent said he expected tariff revenue this year to total about $300bn. By comparison, federal income taxes bring in around $2.5tn a shoppers remain in the front line, and have yet to see higher prices passed on in full. But as consumer goods giants such as Unilever and Adidas start to put numbers on the cost increases involved, some sticker shock, price rises, loom – potentially enough to delay Trump's desired rate cut – and possibly a dent to consumer spending. Forecasts are always uncertain, of course, but this represents a very real political threat for a president who promised to lower consumer prices, not take actions that would raise and other White House officials have floated the idea of providing rebate checks to lower-income Americans – the kinds of blue-collar voters who have fuelled the president's political success – that would offset some of the pocketbook an effort could be unwieldy, and it would require congressional also a tacit acknowledgment that simply boasting of new federal revenue to offset current spending and tax cuts, and holding out the prospect of future domestic job and wealth creation is politically perilous for a Republican party that will have to face voters in next year's midterm state and congressional midterm elections. The deals yet to be hammered out Complicating all this is the fact that there are many countries where a deal is yet to be hammered out – most notably Canada and Taiwan. The US administration has yet to pronounce its decisions for the pharmaceuticals and steel industry. The colossal issue of China, subject to a different deadline, remains agreed to a negotiating extension with Mexico, another major US trading partner, on Thursday of the deals that have been struck have been verbal, as yet unsigned. Moreover it is uncertain if and how the strings attached to Trump's agreements – more money to be spent purchasing American energy or invested in America – will actually be delivered some cases, foreign leaders have denied the existence of provisions touted by the president. When it comes to assessing tariff agreements between the White House and various countries, says Mr May, the "devil is in the detail" – and the details are clear, however, that the world has shifted back from the brink of a ruinous trade war. Now, as nations grapple with a new set of trade barriers, Trump aims to call the history tells us that his overarching aim - to return production and jobs to America – may meet with very limited success. And America's long-time trading partners, like Canada and the EU, could start looking to form economic and political connections that bypass what they no longer view as a reliable economic may be benefitting from the leverage afforded by America's unique position at the centre of a global trading order that it spent more than half a century establishing. If the current tariffs trigger a foundational realignment, however, the results may not ultimately break in favour of the questions will be answered over years, not weeks or months. In the meantime, Trump's own voters may still have to pick up the tab – through higher prices, less choice and slower reporting: Michael Race. Top image credit: Getty Images BBC InDepth is the home on the website and app for the best analysis, with fresh perspectives that challenge assumptions and deep reporting on the biggest issues of the day. And we showcase thought-provoking content from across BBC Sounds and iPlayer too. You can send us your feedback on the InDepth section by clicking on the button below.
Reuters
24 minutes ago
- Reuters
Trump increases tariff on Canada to 35%, White House says
WASHINGTON, July 31 (Reuters) - U.S. President Donald Trump signed an executive order on Thursday increasing tariffs on Canadian goods to 35% from 25%, the White House said. The new rates goes into effect on August 1. "In response to Canada's continued inaction and retaliation, President Trump has found it necessary to increase the tariff on Canada from 25% to 35% to effectively address the existing emergency," the White House said.
Reuters
24 minutes ago
- Reuters
Mexico wins 90-day tariff reprieve as Trump's deadline for higher duties looms
July 31 (Reuters) - U.S. President Donald Trump gave Mexico a 90-day reprieve from higher tariffs on Thursday to negotiate a broader trade deal but was expected to issue higher final duty rates for most other countries as the clock wound down on his Friday deal deadline. Trump was still negotiating deals with trading partners as the 12:01 a.m. EDT deadline approached, and he told a White House event he had "just made a couple of others a little while ago," without giving details. The president will issue higher tariff rates for scores of countries that have not negotiated trade deals by the deadline before midnight, White House Press Secretary Karoline Leavitt told a news conference. The extension for Mexico avoids a 30% tariff on most Mexican non-automotive and non-metal goods compliant with the U.S.-Mexico-Canada Agreement on trade and came after a Thursday morning call between Trump and Mexican President Claudia Sheinbaum. "We avoided the tariff increase announced for tomorrow," Sheinbaum wrote in an X social media post, adding that the Trump call was "very good." Approximately 85% of U.S. imports from Mexico comply with the rules of origin outlined in the USMCA, shielding them from 25% tariffs related to fentanyl, according to Mexico's economy ministry. Trump said the U.S. would continue to levy a 50% tariff on Mexican steel, aluminum and copper and a 25% tariff on Mexican autos and on non-USMCA-compliant goods subject to tariffs related to the U.S. fentanyl crisis. "Additionally, Mexico has agreed to immediately terminate its Non Tariff Trade Barriers, of which there were many," Trump said in a Truth Social post without providing details. But a deal with Canada, the second largest U.S. trading partner after Mexico, did not appear to be materializing late on Thursday, and U.S. Commerce Secretary Howard Lutnick said Trump's prescribed 35% tariffs on Canadian goods not compliant with USMCA were still "surely in the cards." Trump had said Canada's plan to recognize the state of Palestine in September had made a deal with Canada more difficult but hours later said it was "not a deal-breaker." He added that Canadian Prime Minister Mark Carney had called him on Thursday but the two leaders had not spoken. South Korea agreed on Wednesday to accept a 15% tariff on its exports to the U.S., including autos, down from a threatened 25%, as part of a deal that includes a pledge to invest $350 billion in U.S. projects to be chosen by Trump. But goods from India appeared to be headed for a 25% tariff after talks bogged down over access to India's agriculture sector, drawing a higher-rate threat from Trump that also included an unspecified penalty for India's purchases of Russian oil. Although negotiations with India were continuing, New Delhi vowed to protect the country's labor-intensive farm sector, triggering outrage from the opposition party and a slump in the rupee. Trump's rollout of higher import taxes on Friday comes amid more evidence they have begun driving up consumer goods prices. Commerce Department data released Thursday showed prices for home furnishings and durable household equipment jumped 1.3% in June, the biggest gain since March 2022, after increasing 0.6% in May. Recreational goods and vehicles prices shot up 0.9%, the most since February 2024, after being unchanged in May. Prices for clothing and footwear rose 0.4%. Trump hit Brazil on Wednesday with a steep 50% tariff as he escalated his fight with Latin America's largest economy over its prosecution of his friend and former President Jair Bolsonaro, but softened the blow by excluding sectors such as aircraft, energy and orange juice from heavier levies. The run-up to Trump's tariff deadline was unfolding as federal appeals court judges sharply questioned Trump's use of a sweeping emergency powers law to justify his sweeping tariffs of up to 50% on nearly all trading partners. Trump invoked the 1977 International Emergency Economic Powers Act to declare an emergency over the growing U.S. trade deficit and impose his "reciprocal" tariffs and a separate fentanyl emergency. The Court of International Trade ruled in May that the actions exceeded his executive authority, and questions from judges during oral arguments before the U.S. Appeals Court for the Federal Circuit in Washington indicated further skepticism. "IEEPA doesn't even say tariffs, doesn't even mention them," Judge Jimmie Reyna said at one point during the hearing. U.S. Treasury Secretary Scott Bessent said the United States believes it has the makings of a trade deal with China, but it is "not 100% done," and still needs Trump's approval. U.S. negotiators "pushed back quite a bit" over two days of trade talks with the Chinese in Stockholm this week, Bessent said in an interview with CNBC. China is facing an August 12 deadline to reach a durable tariff agreement with Trump's administration, after Beijing and Washington reached preliminary deals in May and June to end escalating tit-for-tat tariffs and a cut-off of rare earth minerals.
