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By Robert Harvey

LONDON (Reuters) -Oil prices rose on Thursday as investors awaited the outcome of an OPEC+ meeting with potential further supply cuts on the agenda.

Brent crude futures for January gained 65 cents, or 0.78%, to $83.75 a barrel by 1210 GMT. The front-month Brent contract expires later on Thursday.

The more liquid February contract was up 57 cents, or 0.69%, at $83.45.

Meanwhile, U.S. West Texas Intermediate crude futures rose by 55 cents, or 0.71%, to $78.41.

The OPEC+ producer group comprising the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, is likely to agree to additional output cuts of more than 1 million barrels per day (bpd), meeting delegates told Reuters.

A continuation of Saudi Arabia’s 1 million bpd voluntary cut is expected to be supplemented by additional and smaller cuts from other members, the delegates added.

Saudi Arabia’s pledge to extend its voluntary cut would be “really important and take out the risk of a collapse (in any mooted deal),” said Investec analyst Callum Macpherson.

But investors will be waiting for a formal announcement from Thursday’s meeting and a breakdown of the additional cuts.

“Who will have to make the cuts? How long will they last?” Macpherson added.

The OPEC+ meeting is scheduled to begin at 1400 GMT, after an OPEC-only ministers meeting at 1100 GMT.

The meeting, being held on the same day as global leaders gather in Dubai for the U.N. climate conference, was originally scheduled for last week but was deferred because of disagreements over output quotas for African producers.

Implementing additional cuts will send prices higher in the immediate future, but the long-term impact is harder to predict, said Tamas Varga of oil broker PVM.

Compliance will be an issue and the global oil balance is probably much less tight than OPEC estimates, he said, citing the latest commercial inventory data out of the United States and the effect on demand from stubbornly high interest rates in many major economies.

(Reporting by Robert Harvey and Natalie Grover in London and Jeslyn Lerh in SingaporeAdditional reporting by Laura Sanicola in WashingtonEditing by Miral Fahmy and David Goodman)

By Natalie Grover

LONDON (Reuters) -Oil prices were little changed on Thursday as investors eagerly awaited the outcome of an anticipated OPEC+ meeting that could lead to deeper supply cuts in 2024.

Brent crude futures for January climbed 70 cents to $83.80 a barrel by 0935 GMT, on subdued volumes given the contract is meant to expire today. The more active February contract was up 58 cents at $83.46 a barrel.

Meanwhile, U.S. West Texas Intermediate crude futures crept up 55 cents at $78.41 a barrel.

The OPEC+ group, which includes the Organization of Petroleum Exporting Countries and allies including Russia, is expected to hold virtual meetings on Thursday to discuss additional production cuts that could range between 1 million to 2 million barrels per day (bpd) in early 2024.

The meeting, being held on the same day as global leaders gather in Dubai for the U.N. climate conference, was originally scheduled for last week but was deferred due to disagreements over output quotas for African producers.

Implementing additional cuts will send prices higher in the immediate future but long-term, their impact will be “dubious”, said Tamas Varga of oil broker PVM.

Compliance will be an issue, and the global oil balance is probably much less tight than OPEC estimates, he said, citing the latest commercial inventory data out of the United States and the stubbornly high interest rates in many major economies that are likely to dampen oil demand.

The U.S. Energy Information Administration on Wednesday reported a surprise build in U.S. crude oil stocks last week, with inventories up by 1.6 million barrels, compared with analysts’ expectations in a Reuters poll for a 933,000-barrel drop. [EIA/S]

But oil prices on Wednesday shrugged off the data with all eyes on the OPEC+ meeting, analysts said.

Adding to the pessimism on the demand side are China’s persisting economic troubles, embodied in the latest factory data published on Thursday, which showed contraction for second straight month in November.

(Reporting by Natalie Grover in London and Jeslyn Lerh in Singapore; Additional reporting by Laura Sanicola in Washington; Editing by Jamie Freed and Miral Fahmy)

By Laura Sanicola and Jeslyn Lerh

SINGAPORE (Reuters) -Oil was little changed on Thursday as investors remained cautious ahead of expected production cuts by the OPEC+ group and as weaker-than-expected Chinese factory data underscored slowing growth in the world’s second largest economy.

Brent crude futures fell 15 cents, or 0.2%, to $82.95 a barrel by 0445 GMT, while U.S. West Texas Intermediate crude futures rose 12 cents, or 0.2%, at $77.98 a barrel.

Oil markets in the previous session found support from hopes of some form of a price-supportive resolution from the OPEC+ group, which includes the Organization of Petroleum Exporting Countries and allies including Russia.

Members of OPEC+ are due to hold a policy meeting on Thursday. Talks ahead of the meeting were focusing on additional production cuts, although details were yet to be agreed, sources close to the group told Reuters.

“The countdown to the upcoming OPEC+ meeting is now underway, and that has been the central focus for oil prices, as market participants have been shrugging off any bearish news in the way for now,” said Yeap Jun Rong, market strategist at IG.

“We have a larger-than-expected build-up in crude inventories from the EIA data, along with a downside surprise in China’s PMI figures this morning. Both may support a narrower supply-demand deficit, but failed to cause much dent in prices,” Yeap added.

China’s manufacturing activity contracted for a second straight month in November and at a quicker pace than expected, an official factory survey showed on Thursday, suggesting more policy support measures are needed to help shore up economic growth in the world’s largest oil importer.

The official purchasing managers’ index (PMI) fell to 49.4 in November from 49.5 in October, staying below the 50-point level demarcating contraction from expansion. Analysts polled by Reuters had expected a reading of 49.7.

Meanwhile, the U.S. Energy Information Administration on Wednesday reported a surprise build in U.S. crude oil and distillate fuel stocks last week, indicating weak demand. Gasoline stocks also rose by more than expected, the data showed. [EIA/S]

“The market ignored what was a relatively bearish inventory report from the EIA,” said analysts from ING, adding that all eyes are on the OPEC+ meeting.

“Adding to the uncertainty from the meeting is that it is still not clear if the group has been able to resolve a disagreement over Angolan and Nigerian production targets for next year,” the analysts said.

African members of OPEC+ producer group Angola and Nigeria are aiming for higher oil output, officials had told Reuters.

(Reporting by Laura Sanicola in Houston and Jeslyn Lerh in Singapore; Editing by Jamie Freed and Miral Fahmy)

Nvidia Blockbuster Rally To Slow on 2024 amid China Headwind and Valuation Concerns

Nvidia is unlikely to replicate the stellar performance that has seen its share price more than tipple and become a trillion-dollar company next year. That’s the sentiment echoed on Wall Street as the stock has struggled to rally at an explosive pace as it did early in the year on delivering better-than-expected earnings in the last two reports.

China Headwind

While the stock has rallied by more than 220% in 2023, analysts only expect the stock to rally by 36%  in the next 12 months. While it is a significant return, it is still less than the blockbuster year the company had 2023 on benefiting from the artificial intelligence boom. The chip giant has emerged as the poster child behind the revolutionary technology owing to the strong demand for its graphic processing units.

The stock has come under immense pressure in the recent past, with a share of the company dropping by nearly 4% on growing concerns over escalating US chip curbs that could sap growth in China. It has struggled to find support above the $500 a share level, with analysts attributing  the weakness to the company pushing back on the release of a new artificial intelligence chip destined for China until next year

The company has to redesign the chip for the Chinese market while simultaneously trying to comply with the US export rules. The pushback comes from the US Commerce Department reiterating tightening rules that target Chinese access to AI and other advanced technologies. The new curbs will focus on the most high-tech chips that remain banned for export without a license.

China remains the company’s third largest market, and any standoff with the US could significantly take a toll on Nvidia’s prospects of curtailing the AI-driven boom. Nvidia has already acknowledged that increasing tension between China and the US over chip technologies could result in tighter export controls that could affect its business. Nevertheless, the company still projects revenue of $20 billion for the current quarter, beating analysts’ consensus estimates by over $2 billion.

Nvidia Outlook

After rallying by more than 200% year to date, there have been growing concerns about Nvidia’s stock valuation. Many have questioned the premium valuation as the company faces stiff competition from other chip giants investing in chips needed to power the artificial intelligence revolution.

Nevertheless, NVidia stock still trades at an earnings per share multiple  of around 23 times its consensus forecast   earnings for 2024  and 20 times forecast earnings for 2023. It’s the fact that the stock is cheaper than Apple and Microsoft that has continued to fuel bullish bets on the stock.

Analysts at Melius Research have already reiterated a  buy rating on the stock with a  $750 price target, implying a gain of nearly 50% from current levels. The average price target on Wall Street is $668. However, after a  220% plus rally, the bar is exceptionally high, presenting a significant challenge heading into 2024. Similarly, headwinds like China could become a  big problem that could rattle stock sentiments and prospects in the market.

By Laura Sanicola

(Reuters) – Oil prices fell in early Asian trade on Thursday on weaker-than-expected Chinese manufacturing data, but investors maintained caution ahead of an OPEC+ meeting where production cuts are expected.

Brent crude futures fell 28 cents, or 0.3%, to $82.90 a barrel by 0024 GMT, while U.S. West Texas Intermediate (WTI) crude futures fell 24 cents, or 0.3%, to $77.68 a barrel.

China’s manufacturing activity contracted for a second straight month in November and at a quicker pace than expected, an official factory survey showed on Thursday, suggesting more policy support measures are needed to help shore up economic growth in the world’s largest oil importer.

The official purchasing managers’ index (PMI) fell to 49.4 in November from 49.5 in October, staying below the 50-point level demarcating contraction from expansion. Analysts polled by Reuters had expected a reading of 49.7.

The U.S. Energy Information Administration on Wednesday reported a surprise build in U.S. crude oil and distillate fuel stocks last week, indicating weak demand. Gasoline stocks also rose by more than expected, the data showed. [EIA/S]

Oil markets in the previous session found support from hopes of some form of a price-supportive resolution from the OPEC+ group, which includes the Organization of Petroleum Exporting Countries and its allies such as Russia.

Members of OPEC+ are due to hold a policy meeting on Thursday. Talks ahead of the meeting were focusing on additional production cuts, although details were yet to be agreed, sources close to the group told Reuters.

Another media report on Wednesday said that the cut could be as much as 1 million barrels a day.

(Reporting by Laura Sanicola; Editing by Jamie Freed)

(Please note strong language in paragraphs 1, 6-8)

By Sheila Dang

(Reuters) – Billionaire Elon Musk told advertisers that have fled his social media platform X over antisemitic content to “Go fuck yourself” in a fiery Wednesday interview.

His profanity-laced remarks followed a moment of contrition in a New York Times DealBook Summit interview. Musk said repeatedly he was sorry for publishing a tweet on Nov. 15 that agreed with an anti-Jewish post.

Musk has faced a torrent of criticism ever since he agreed with a user who falsely claimed Jewish people were stoking hatred against white people. Musk in his post said the user, who referenced the “Great Replacement” conspiracy theory, was speaking “the actual truth.”

On Wednesday Musk said he had “handed a loaded gun” to both detractors and antisemitic people, describing his post as possibly the worst he had made during a history of messages that included many “foolish” ones.

The Tesla CEO bristled at the idea that he was antisemitic and said that advertisers who left X, formerly known as Twitter, should not think they could blackmail him.

“If somebody’s gonna try to blackmail me with advertising, blackmail me with money? Go fuck yourself,” he said.

“Go. Fuck. Yourself. Is that clear? I hope it is. Hey, Bob, if you’re in the audience,” he added, in an apparent reference to Robert Iger, chief executive of Walt Disney, which pulled ads on X. Iger spoke earlier at the event and said that Disney felt the association with X following Musk’s move “was not a positive one for us”. A spokesperson from Disney did not immediately respond to a request for comment.

“What I care about is the reality of goodness, not the perception of it. And what I see all over the place is people who care about looking good while doing evil. Fuck them,” Musk said.

Musk’s expletives against advertisers is the “closing chapter” for brands doing business with X, said Lou Paskalis, founder of marketing consultancy AJL Advisory and the former head of global media at Bank of America. “They’re not going to forget that,” he said.

Customers who did not like him should consider the products his company make based on their quality, Musk said, pointing to electric cars from Tesla and SpaceX rockets. “I will certainly not pander,” he said.

Musk added that he himself arguably had done more for the environment, at Tesla, than anyone in the world, based on Tesla’s massive sales of electric vehicles.

“It would be fair to say, therefore, as a leader of the company, I’ve done more for the environment than everyone — any single human on Earth.”

Musk’s comments came on the same day that U.S. Senate Majority Leader Chuck Schumer warned that the rise in antisemitism since the start of the Israel-Hamas war has reached a crisis point, saying it threatens the safety of Jews worldwide and the future of Israel. “To us, the Jewish people, the rise in antisemitism is a crisis. A five-alarm fire that must be extinguished,” Schumer said in an emotional, 40-minute Senate speech.

Musk’s post drew condemnation from the White House for what it called an “abhorrent promotion of antisemitic and racist hate.”

The “Great Replacement” theory falsely claims that Jewish people and leftists are engineering the ethnic and cultural replacement of white populations with non-white immigrants that will lead to a “white genocide.”

Following the post, major U.S. companies including Walt Disney, Warner Bros Discovery and NBCUniversal parent Comcast suspended their ads on X. A report from liberal watchdog group Media Matters precipitated the advertiser exit, which said it found ads next to posts that supported Nazism. The platform filed a lawsuit last week against Media Matters for defamation.

Musk’s comments have put pressure on X overall, including Chief Executive Linda Yaccarino. An executive told Reuters that she would remain at the company.

Musk himself appeared resolved that X could fail financially and blamed advertisers.

“If the company fails because of advertiser boycott, it will fail because of an advertiser boycott. And that will be what bankrupt the company and that’s what everybody on earth will know,” he said. “Let the chips fall where they may.”

In the wake of the condemnation around his post, Musk traveled to Israel and toured the site of Hamas’ assault in the country on Oct. 7. On Monday, he spoke with Israeli Prime Minister Benjamin Netanyahu in a live-streamed conversation on X.

Musk on Wednesday said the trip had been planned before his message and was “independent” of the issue.

Musk in Israel said he is against antisemitism and anything that “promotes hate and conflict” and stated that X would not promote hate speech. While there, he received a symbolic dog-tag from the father of an Israeli hostage taken captive by Hamas, which he promised to wear until all the hostages were free. He wore the dog-tag on stage on Wednesday.

“The fact that you came here speaks volumes of your commitment to try to secure a better future,” Netanyahu told Musk during the conversation in Israel.

Musk’s wide-ranging interview on Wednesday included discussions from freedom of speech to the environment to U.S. presidential politics. Musk said he thought he would not vote to re-elect President Joe Biden but did not say he would vote for his likely challenger, Donald Trump.

(Reporting by Sheila Dang in Dallas; Additional reporting by Hyunjoo Jin; Writing by Peter Henderson; Editing by David Gaffen and Lisa Shumaker)

SHANGHAI (Reuters) – China President Xi Jinping visited Shanghai, where he went to several venues and learned about the city’s efforts to strengthen its competitiveness as an international financial centre, Xinhua news agency reported on Wednesday.

Xi made the trip on Tuesday and Wednesday and he inspected the Shanghai Futures Exchange, an exhibition on Shanghai’s sci-tech innovations and a government-subsidized rental housing community, the report said.

He was seen with other government leaders, including Cai Qi, the head of the powerful Secretariat of the Communist Party of China Central Committee that oversees day-to-day affairs of the CPC.

Vice Premier He Lifeng, Shanghai’s Communist party secretary Chen Jining and Mayor Gong Zheng also accompanied his visit.

A video posted by state television showed Xi inspecting a humanoid robot and a section of an exhibition showcasing China’s integrated circuits technology, an industry that he has been pushing for more modernisation and self-sufficiency.

He could also be seen touring an affordable housing compound in Shanghai’s Minhang district. The Chinese government has in recent months pledged more support in boosting affordable housing as high home prices in major cities like Shanghai shut out many buyers.

It was his first visit to the city since November 2020 and comes a year after historic street protests against China’s zero-COVID policy broke out in Shanghai.

The visit also coincides with the 10th anniversary of the establishment of the Shanghai Free-Trade Zone (FTZ), a testing ground for economic reforms that has struggled to live up to its initial promise of free-flowing currency and easier international trade.

Shanghai is home to China’s largest foreign business community, hosting firms such as Tesla, Disney and L’Oreal, but its economy and global reputation was badly hit by a two-month-long COVID-induced lockdown last year.

Xi’s visit also comes as confidence among foreign businesses and private investors in the Chinese economy remains subdued, hurt by the country’s past COVID policies and a years-long regulatory crackdown on sectors from technology to property that the government began easing this year.

Overtures by Chinese Premier Li Qiang, a close Xi confidant, to both foreign firms and local entrepreneurs over the past year where he has declared the country open for business has been greeted with scepticism in light of a broader anti-espionage law, and moves such as raids on consultancies, as well as a lack of policies to boost confidence. (This story has been refiled to fix a typo in paragraph 5)

(Reporting by Brenda Goh, Bernard Orr, Ella Cao and Ethan Wang; Editing by Mark Potter, Louise Heavens, Chizu Nomiyama and Mark Porter)

By Martin Coulter

LONDON (Reuters) – Google DeepMind has used artificial intelligence (AI) to predict the structure of more than 2 million new materials, a breakthrough it said could soon be used to improve real-world technologies.

In a research paper published in science journal Nature on Wednesday, the Alphabet-owned AI firm said almost 400,000 of its hypothetical material designs could soon be produced in lab conditions.

Potential applications for the research include the production of better-performing batteries, solar panels and computer chips.

The discovery and synthesis of new materials can be a costly and time-consuming process. For example, it took around two decades of research before lithium-ion batteries – today used to power everything from phones and laptops to electric vehicles – were made commercially available.

“We’re hoping that big improvements in experimentation, autonomous synthesis, and machine learning models will significantly shorten that 10 to 20-year timeline to something that’s much more manageable,” said Ekin Dogus Cubuk, a research scientist at DeepMind.

DeepMind’s AI was trained on data from the Materials Project, an international research group founded at the Lawrence Berkeley National Laboratory in 2011, made up of existing research of around 50,000 already-known materials.

The company said it would now share its data with the research community, in the hopes of accelerating further breakthroughs in material discovery.

“Industry tends to be a little risk-averse when it comes to cost increases, and new materials typically take a bit of time before they become cost-effective,” said Kristin Persson, director of the Materials Project.

“If we can shrink that even a bit more, it would be considered a real breakthrough.”

Having used AI to predict the stability of these new materials, DeepMind said it would now turn its focus to predicting how easily they can be synthesised in the lab.

(Reporting by Martin Coulter; Editing by Jan Harvey)

By David Shepardson

WASHINGTON (Reuters) -The United Auto Workers union said on Wednesday it is launching a first-of-its-kind push to publicly organize the entire nonunion auto sector in the U.S. after winning new contracts with the Detroit Three automakers.

The Detroit-based UAW said workers at 13 nonunion automakers were announcing simultaneous campaigns across the country to join the union, including at Tesla, Toyota, Volkswagen, Hyundai, Rivian, Nissan, BMW and Mercedes-Benz.

Those automakers employ nearly 150,000 workers at their U.S. assembly plants, about the same number as those employed by the Detroit Three companies with which the UAW just signed new labor agreements, the union said.

“To all the auto workers out there working without the benefits of a union, now it’s your turn,” UAW President Shawn Fain said in a video posted on a website urging auto workers to sign electronic cards seeking union representation.

“The money is there. The time is right,” he added. “You don’t have to worry about how you’re going to pay your rent or feed your family while the company makes billions. A better life is out there.”

The UAW’s deals with General Motors, Ford Motor and Stellantis included a 25% increase in base wages through 2028, cut the time needed to reach top pay to three years from eight years, boosted the pay of temporary workers by 150% and made them permanent employees.

The UAW detailed its organizing strategy. The union said if 30% of workers at a nonunion plant sign cards seeking to join, it would make that public. If 50% of workers seek to join, the UAW would hold a rally with Fain to tout the effort. At 70% and with an organizing committee in place, the UAW would seek recognition or demand a union representation vote.

Tesla CEO Elon Musk, when asked about the UAW’s efforts at the New York Times DealBook Summit Wednesday, said: “I disagree with the idea of unions.” He said if Tesla is unionized, “it’ll be because we deserve it and we failed in some way.”

Tesla is the world’s largest electric vehicle maker by market value.

Other automakers the UAW is targeting include Honda, Subaru, Mazda, Lucid and Volvo Cars.

Honda was cool to the idea of union representation at its U.S. plants.

“We do not believe an outside party would enhance the excellent employment experience of our associates, nor would it improve upon the outstanding track record of success and employment stability Honda manufacturing associates in America have achieved,” it said in a statement.

A Subaru spokesman said the Japanese automaker has “consistently demonstrated a commitment to proactively do the right thing for its associates.”

Officials with Toyota, Rivian and Volkswagen declined to comment and the other automakers could not immediately be reached.

The UAW effort with the nonunion automakers echoes the approach it took with the Detroit Three, where the union negotiated simultaneously with all three in reaching an agreement after a six-week strike.

The push comes as several foreign automakers have announced significant pay and other compensation improvements in response to the UAW contracts in a move many analysts and industry officials saw as an effort to keep the UAW out of their plants.

U.S. President Joe Biden this month backed the UAW in its quest to unionize other carmakers. “I want this type of contract for all auto workers and I have a feeling the UAW has a plan for that,” he said at an event with Fain.

The UAW for decades has unsuccessfully sought to organize auto factories operated by foreign automakers. Efforts to organize Nissan plants in Mississippi and Tennessee failed by wide margins, and two attempts to organize VW’s plant in Chattanooga, Tennessee, failed by a closer margin.

Harley Shaiken, a labor professor at the University of California, Berkeley, acknowledged the UAW’s past failures, but said the environment is more positive now with the strong deals in place with the Detroit Three, a more favorable view of unions by the broader public and the support of the White House.

“This is the moment to try it, but it will be very difficult because the companies have raised wages to make this less likely and they will resist this across the board very strongly,” he said. “It’s going to be tough, but if there was a moment to seize, it’s right now.”

The new UAW organizing site – UAW.org/join – echoes the group’s criticism of the Detroit Three automakers during its contract push, including noting corporate profits and CEO pay.

The website asks Tesla workers to join, saying CEO “Elon Musk is the richest man in the world, with a net worth of $230 billion. U.S. production has more than doubled since 2020, and Tesla’s sales are booming. The question is, will Tesla workers get their fair share?”

The UAW said one of its strongest campaigns was at Toyota’s Georgetown, Kentucky, assembly complex, where 7,800 workers build the Camry, RAV4 and Lexus ES. Union officials have repeatedly pointed to Toyota as a top target.

(Reporting by David Shepardson in WashingtonEditing by Ben Klayman and Matthew Lewis)

By Zaheer Kachwala

(Reuters) -Salesforce raised its annual profit forecast and its third-quarter results beat Wall Street targets on Wednesday, benefiting from a strong demand for its cloud and business products in an uncertain economy.

Its shares rose 7% after the bell as it also forecast fourth-quarter revenue and profit above expectations, raising optimism that tech spending is picking up pace in the second half as inflation cools.

The company now expects full-year adjusted profit between $8.18 and $8.19 per share compared with $8.04 to $8.06 it had forecast earlier.

This also indicates that the profitability push is paying off for the company that has primarily gained market share through acquisitions and by expanding its product portfolio.

Salesforce had said in September it would hire more than 3,000 people across various departments after cutting jobs by 10% in January to drive up margins.

“Salesforce’s terrific earnings are another signal that their core business is trending upward, as their increasingly profitable growth and forecasted AI tailwinds continue to fuel a tremendous YTD stock resurgence,” said Third Bridge analyst Charlie Miner.

The company launched its generative AI tool, Einstein Copilot, which can summarize video calls and generate emails for various purposes across its suite of apps, including Slack and Tableau, in September.

Salesforce expects fourth-quarter adjusted profit in the range of $2.25 to $2.26 per share compared with estimates of $2.17.

It forecast revenue between $9.18 billion and $9.23 billion, the midpoint of which exceeded estimates of $9.21 billion, according to LSEG data.

The company’s third-quarter revenue of $8.72 billion narrowly beat expectations, while adjusted profit of $2.11 per share beat estimates by 5 cents.

It also raised the lower end of its annual revenue forecast to $34.75 to $34.8 billion.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Arun Koyyur)