By Stephen Nellis

(Reuters) – Qualcomm on Tuesday gave details about a chip for Microsoft Windows-based laptops that it claims will be faster at some tasks than Apple’s chips for Mac computers.

Qualcomm executives said that the company’s new Snapdragon Elite X chip will be available in laptops starting next year and has been redesigned to better handle artificial intelligence tasks like summarizing emails, writing text and generating images.

The announcement comes a day after Reuters reported that Microsoft has encouraged Qualcomm, Nvidia and Advanced Micro Devices to come up with new chips to handle a bevy of new AI features in Windows, the world’s most popular PC operating system.

Qualcomm will be the first to market with a chip to challenge Apple, whose laptop and desktop computers have more than doubled their market share since the iPhone maker introduced custom-designed chips in 2020. The X Elite chip will be the San Diego, California firm’s first to feature completely custom computing cores designed by a team of ex-Apple engineers it acquired for $1.4 billion in 2021.

Qualcomm claimed on Tuesday that the X Elite is faster than Apple’s M2 Max chip at some tasks and more energy efficient than both Apple and Intel PC chips. But Qualcomm Senior Vice President Alex Katouzian said the biggest new feature is that the chip can handle artificial intelligence models with 13 billion parameters, a proxy measure of sophisticated for AI systems that generate text or images.

“These models can respond faster than what you and I can read,” Katouzian said. “No one else in the world can do that” on a laptop, Katouzian added.

Francis Sideco, an analyst with TIRIAS Research, said that with companies such as Adobe rolling out the ability to use AI to generate images for everything from real estate brochures to beer can labels, demand for laptops with AI capabilities will rise.

“You’ve got a lot of smaller businesses and individual designers and creators using these devices. They need that kind of capability,” Sideco said.

(Reporting by Stephen Nellis in San Francisco; Editing by Lisa Shumaker)

By Nicole Jao and Seher Dareen

(Reuters) -NextEra Energy expects financial results to be at least near the top of its earnings per share expectations for the next three years, CEO John Ketchum said during a call with analysts on Tuesday.

The firm’s third-quarter profit beat Wall Street estimates on the back of higher retail sales at its utilities business and additional projects at its renewable energy units.

NextEra, which generates more wind and solar power than any other company in the world, has benefited from a clean energy investment push in the U.S. after the passage of the Inflation Reduction Act last year.

“We will be disappointed if we are not able to deliver financial results at, or near the top of our adjusted earnings per share expectations ranges in each year through 2026,” Ketchum said.

Florida Power & Light, NextEra’s regulated utilities business, added 65,000 more customers from a year earlier, indicating higher retail sales due to warmer weather in Florida.

NextEra Energy Resources, its clean energy unit, added nearly 3,245 megawatts of new renewable and storage projects, which now totals over 21 gigawatts, net of projects placed in service.

The firm’s solar newbuilds are at a record level and wind newbuilds are close to an all-time high despite the increase in interest rates, Raymond James analyst Pavel Molchanov noted.

“We should underscore that the cost of capital is not the only variable that matters. Hardware costs have come down sharply, which helps to cancel out the effect of high interest rates,” he said.

The parent company in its conference call announced it expects to transfer nearly $400 million in tax credits this year, and they are likely to grow to approximately $1.6 billion to $1.8 billion by 2026.

Shares of NextEra Energy were up 6.7% at $54.96. Nextera Energy Partners jumped 13.7% to $25.48, its highest since Oct. 2.

NextEra Energy Partners, a unit of the company created to acquire, manage and own contracted energy projects, saw growth in the third quarter primarily driven on new projects, and was focused on an annual growth rate averaging 6%.

In September, the unit cut its forecast from between 12% and 15% to between 5% to 8%.

There had been concerns ahead of the earnings call that increased competition and higher interest rates would hurt NextEra’s renewable business, said Mike Doyle, utilities analyst at Edward Jones. “We really didn’t see that in terms of record originations on the renewable side that increased their backlog of projects, which will be done in coming years,” he said.

The utility business also continued to perform, said Doyle. “We think they will show some of the better growth among pure utilities in coming years.”

The Juno Beach, Florida-based company said it expected adjusted earnings per share for 2023 to be in the range of $2.98 to $3.13 against LSEG estimates of $3.12, and for 2024 to be in the $3.23 to $3.43 range compared with $3.40, per LSEG data.

On an adjusted basis, the company earned 94 cents per share in the quarter, beating estimates of 87 cents, according to LSEG data.

(Reporting by Seher Dareen in Bengaluru and Nicole Jao in New York; Editing by Krishna Chandra Eluri, Sharon Singleton and Jonathan Oatis)

By Shariq Khan

BENGALURU (Reuters) – Oil prices fell on Tuesday for the third straight session, after a flurry of slow economic data from Germany, the euro zone and Britain weighed on the outlook for energy demand.

Brent crude futures were down $1.63, or 1.8%, at $88.20 a barrel at 1:03 p.m. EDT (1703 GMT). U.S. West Texas Intermediate crude futures were down $1.71, or 2%, at $83.78 a barrel.

Euro zone business activity data took a surprise downward turn this month, suggesting the bloc may slip into recession.

German readings suggested a recession in that country is underway. Britain’s businesses reported another monthly decline in activity, highlighting recession risks ahead of the Bank of England’s interest rate decision next week.

“There is definitely a dialogue on about the global economy being worse this week than it was last week,” said Mizuho analyst Robert Yawger. “It does not help that a lot of the top bankers and financial experts are in Saudi Arabia today talking about how bad the economy is,” he added, referring to the Future Investment Initiative event dubbed “Davos in the Desert”.

In contrast to Europe, U.S. data showed business output ticked higher in October as manufacturing pulled out of a five-month contraction. The relative strength of the U.S. economy helped lift the dollar, making dollar-denominated oil more expensive for holders of other currencies.

The International Energy Agency said it expected fossil fuel demand to peak by 2030 based on governments’ current policies.

On Monday, both oil benchmarks fell more than 2% as diplomatic efforts in the Middle East, the world’s biggest oil-supplying region, intensified to contain the conflict between Israel and Hamas.

Julius Baer analyst Norbert Ruecker said “the risk premium inherent to oil prices should disappear within weeks … we see prices heading lower into next year.”

In the U.S., a weekly rise in crude stockpiles was expected in a preliminary Reuters poll.

U.S. storage reports are due from the American Petroleum Institute industry group at 4:30 p.m. EDT (2030 GMT) and from the U.S. Energy Information Administration on Wednesday morning at 10:30 a.m. EDT (1430 GMT).

(Reporting by Shariq Khan; Additional reporting by Sadia Nasralla, Mohi Narayan and Yuka Obayashi; Editing by Chizu Nomiyama, Mark Potter and David Gregorio)

By Shariq Khan

BENGALURU (Reuters) – Oil prices fell on Tuesday for the third straight session, after a flurry of slow economic data from Germany, the euro zone and Britain that weighed on the outlook for energy demand.

Brent crude futures were down $1.76, or 2%, at $88.07 a barrel at 11:20 a.m. EDT (1520 GMT). U.S. West Texas Intermediate crude futures were down $1.91, or 2.2%, at $83.58 a barrel.

Euro zone business activity data took a surprise downward turn this month, suggesting the bloc may slip into recession.

German readings suggested a recession in that country is underway. Britain’s businesses reported another monthly decline in activity, highlighting recession risks ahead of the Bank of England’s interest rate decision next week.

“There is definitely a dialogue on about the global economy being worse this week than it was last week,” said Mizuho analyst Robert Yawger. “It does not help that a lot of the top bankers and financial experts are in Saudi Arabia today talking about how bad the economy is,” he added, referring to the Future Investment Initiative event dubbed “Davos in the Desert”.

In contrast to Europe, U.S. data showed business output ticked higher in October as manufacturing pulled out of a five-month contraction. The relative strength of the U.S. economy helped lift the dollar, making dollar-denominated oil more expensive for holders of other currencies.

The International Energy Agency said it expected fossil fuel demand to peak by 2030 based on governments’ current policies.

On Monday, both oil benchmarks fell more than 2% as diplomatic efforts in the Middle East, the world’s biggest oil-supplying region, intensified to contain the conflict between Israel and Hamas.

Julius Baer analyst Norbert Ruecker said “the risk premium inherent to oil prices should disappear within weeks … we see prices heading lower into next year.”

In the U.S., a weekly rise in crude stockpiles was expected in a preliminary Reuters poll.

U.S. storage reports are due from the American Petroleum Institute industry group at 4:30 p.m. EDT (2030 GMT) and from the U.S. Energy Information Administration on Wednesday morning at 10:30 a.m. EDT (1430 GMT).

(Additional reporting by Mohi Narayan in New Delhi and Yuka Obayashi in Tokyo; Editing by Chizu Nomiyama and Mark Potter)

By Saqib Iqbal Ahmed

NEW YORK (Reuters) -The dollar climbed against a basket of currencies on Tuesday as a slew of fresh economic data highlighted the strength of the U.S. economy relative to the United Kingdom and the European Union.

U.S. business output ticked higher in October as the manufacturing sector pulled out of a five-month contraction on a pickup in new orders, and services activity accelerated modestly amid signs of easing inflationary pressures, S&P Global said on Tuesday.

It was the latest sign the U.S. economy is withstanding the surge in interest rates, spurred by the Federal Reserve’s campaign to beat back inflation.

The dollar index, which measures the currency’s strength against a basket of six rivals, was 0.6% higher at 106.19. The index had slipped to a one-month low of 105.35 earlier in the session.

“The big picture still clearly remains intact, especially when you compare U.S. PMI to the concurrent releases out of the UK and the euro zone this morning,” Helen Given, FX trader at Monex USA, said.

“While all three PMI readings for the U.S. (manufacturing, services, and composite) were positive, both the UK and the euro zone showed contractions, re-emphasizing the continuing resilience of the larger U.S. economy in comparison to its peers around the world,” she said.

Earlier on Tuesday, survey data showed that euro zone business activity took a surprise turn for the worst this month in a broad-based downturn across the region, suggesting the bloc may slip into recession.

The euro reversed course and was last 0.7% lower at $1.05975.

German data was particularly glum. The purchasing managers’ index survey showed that the service sector joined the manufacturing sector in contractionary territory.

Global financial markets have been gripped by a surge in U.S. bond yields, which on Monday pushed the all-important 10-year Treasury yield above 5% to its highest since July 2007. The rise in yields drove the dollar index to an almost one-year high earlier this month.

The yield then dropped sharply later on Monday. Analysts said one catalyst was a social media message by prominent hedge fund investor Bill Ackman, saying he had closed out his bet against longer-dated bonds and that geopolitical worries were a factor. Yields rise as prices fall and vice versa.

The dollar was last up 0.1% at 149.875 yen, keeping traders nervous about possible government intervention to prop up the Japanese currency.

The British pound was last down 0.59% at $1.21765. Britain’s businesses reported another decline in activity this month and cost pressures cooled further, surveys showed on Tuesday, underlining the risk of recession.

The Bank of England is due to set interest rates on Thursday next week, after the Federal Reserve’s decision on Wednesday. The European Central Bank’s meeting ends this Thursday, with traders expecting all three central banks to hold rates steady.

In cryptocurrency markets, bitcoin extended its rise, helped by speculation that an exchange-traded bitcoin fund is imminent. The world’s largest cryptocurrency by market cap was last up 4.1% at $34,423.

(Reporting by Saqib Iqbal Ahmed; Additional reporting by Harry Robertson in London and Brigid Riley in TokyoEditing by Emelia Sithole-Matarise, Mark Potter and Sharon Singleton)

By Shadia Nasralla

LONDON (Reuters) – Oil prices dipped on Tuesday following the previous session’s slump, while a flurry of economic data from Germany, the wider euro zone and Britain sketched a bearish picture that could weigh on oil demand.

Moving between positive and negative territory in the session, Brent crude futures were down 47 cents, or 0.5%, at $89.38 a barrel at 1356 GMT, while U.S. West Texas Intermediate crude futures were down 47 cents, or 0.6%, at $85.02 a barrel.

Euro zone business activity took a surprise turn for the worse this month, data showed on Tuesday, suggesting the bloc may slip into recession.

German readings suggested a recession in the country is well underway, while Britain’s businesses reported another decline in activity this month, underlining the risk of recession ahead of the Bank of England’s interest rate decision next week.

In the United States in contrast, business output ticked higher in October as the manufacturing sector pulled out of a five-month contraction.

Meanwhile, the International Energy Agency said it expected fossil fuel demand to peak by 2030 based on governments’ current policies.

Both oil benchmarks fell more than 2% on Monday as diplomatic efforts in the Middle East, the world’s biggest oil-supplying region, intensified to contain the conflict between Israel and Hamas.

Julius Baer analyst Norbert Ruecker said “the risk premium inherent to oil prices should disappear within weeks … we see prices heading lower into next year.”

In the U.S., crude stockpiles were expected to have risen last week, a preliminary Reuters poll showed on Monday.

The report from the American Petroleum Institute industry group is due at 2030 GMT on Tuesday and the Energy Information Administration report at 1430 GMT on Wednesday.

(Additional reporting by Mohi Narayan in New Delhi and Yuka Obayashi in Tokyo; Editing by Chizu Nomiyama and Mark Potter)

(Reuters) -Rapid advances in artificial intelligence (AI) such as Microsoft-backed OpenAI’s ChatGPT are complicating governments’ efforts to agree laws governing the use of the technology.

Here are the latest steps national and international governing bodies are taking to regulate AI tools:

AUSTRALIA

* Planning regulations

Australia will make search engines draft new codes to prevent the sharing of child sexual abuse material created by AI and the production of deepfake versions of the same material, its internet regulator said in September.

BRITAIN

* Planning regulations

Britain’s data watchdog said on Oct. 10 it had issued Snap Inc’s Snapchat with a preliminary enforcement notice over a possible failure to properly assess the privacy risks of its generative AI chatbot to users, particularly children.

The country’s competition authority set out seven principles on Sept. 18 designed to make developers accountable, prevent Big Tech tying up the tech in their walled platforms, and stop anti-competitive conduct like bundling.

The proposed principles, which came six weeks before Britain hosts a global AI safety summit, will underpin its approach to AI when it assumes new powers in the coming months to oversee digital markets.

CHINA

* Implemented temporary regulations

China published proposed security requirements for firms offering services powered by generative AI on Oct. 12, including a blacklist of sources that cannot be used to train AI models.

The country issued a set of temporary measures in August, requiring service providers to submit security assessments and receive clearance before releasing mass-market AI products.

EUROPEAN UNION

* Planning regulations

European lawmakers are yet to agree on several issues related to new AI rules, leaving any deal off the table until December, four people familiar with the matter said on Oct. 23.

EU lawmaker Brando Benifei, who is leading negotiations on the bloc’s AI Act, on Sep. 21 urged member countries to compromise in key areas to reach an agreement by the end of the year. Lawmakers are thrashing out details with EU countries before the draft rules can become legislation.

European Commission President Ursula von der Leyen on Sept. 13 called for a global panel to assess the risks and benefits of AI.

FRANCE

* Investigating possible breaches

France’s privacy watchdog said in April it was investigating complaints about ChatGPT.

G7

* Seeking input on regulations

G7 leaders in May called for the development and adoption of technical standards to keep AI “trustworthy”.

ITALY

* Investigating possible breaches

Italy’s data protection authority plans to review AI platforms and hire experts in the field, a top official said in May. ChatGPT was temporarily banned in the country in March, but it was made available again in April.

JAPAN

* Investigating possible breaches

Japan expects to introduce by the end of 2023 regulations that are likely closer to the U.S. attitude than the stringent ones planned in the EU, an official close to deliberations said in July.

The country’s privacy watchdog has warned OpenAI not to collect sensitive data without people’s permission.

POLAND

* Investigating possible breaches

Poland’s Personal Data Protection Office said on Sept. 21 it was investigating OpenAI over a complaint that ChatGPT breaks EU data protection laws.

SPAIN

* Investigating possible breaches

Spain’s data protection agency in April launched a preliminary investigation into potential data breaches by ChatGPT.

UNITED NATIONS

* Planning regulations

The U.N. Security Council held its first formal discussion on AI in July, addressing military and non-military applications of AI that “could have very serious consequences for global peace and security”, Secretary-General Antonio Guterres said.

Guterres has backed a proposal by some AI executives for the creation of an AI watchdog, and announced plans to start work on a high-level AI advisory body by the end of the year.

U.S.

* Seeking input on regulations

The U.S. Congress in September held hearings on AI and an AI forum featuring Meta CEO Mark Zuckerberg and Tesla CEO Elon Musk.

More than 60 senators took part in the talks, during which Musk called for a U.S. “referee” for AI. Lawmakers said there was universal agreement about the need for government regulation of the technology.

On Sept. 12, the White House said Adobe, IBM, Nvidia and five other firms had signed President Joe Biden’s voluntary commitments governing AI, which require steps such as watermarking AI-generated content.

A Washington D.C. district judge ruled in August that a work of art created by AI without any human input cannot be copyrighted under U.S. law.

The U.S. Federal Trade Commission opened in July an investigation into OpenAI on claims that it has run afoul of consumer protection laws.

(Compiled by Alessandro Parodi and Amir Orusov in Gdansk; Editing by Kirsten Donovan, Mark Potter, Christina Fincher and Milla Nissi)

By Rajesh Kumar Singh and Abhijith Ganapavaram

(Reuters) – General Electric on Tuesday raised its full-year profit forecast for a third time this year after quarterly earnings topped Wall Street estimates on robust demand for jet engine parts and services and a better performance in its renewable business.

GE shares were up 6% at $113.14 in pre-market hours.

GE’s aviation business, its cash cow, has been lifted by a surge in demand for aftermarket services as a strong rebound in air travel prompted airlines to use jets for longer against the backdrop of commercial plane shortages.

The business, however, is still grappling with supply-chain challenges. The company said high supplier delinquencies are impacting jet engine output, pushing out the deliveries for LEAP engines into 2024 and 2025.

“We’re navigating a still-challenging supply chain environment to deliver for and support our customers,” CEO Larry Culp said on an earnings call.

LEAP engines, which GE produces in a joint venture with France’s Safran, power the narrowbody aircraft of Boeing Co and Airbus. The company now estimates the engine deliveries to be up 40% to 45% this year from 2022, down from a 50% increase estimated earlier.

Chief Commercial Officer Rahul Ghai said the company expects a similar growth in the engine deliveries next year.

GE’s aerospace unit posted double-digit growth in orders, revenue and profit from a year earlier. Its margin expanded by 130 basis points in the quarter from a year ago.

The company’s performance contrasts with rival RTX, which reported a near billion-dollar quarterly loss due to a major quality crisis at its subsidiary Pratt and Whitney affecting the popular Geared Turbofan (GTF) engines.

Profits at GE’s grid and onshore wind businesses in the quarter helped narrow losses at its renewable unit.

Culp expressed confidence that the businesses would continue to improve, but said offshore wind was estimated to report losses of roughly $1 billion this year. He expected similar losses next year.

The renewable business has struggled due to a combination of weak demand and higher raw material and labor costs.

GE, which has completed the separation of its healthcare unit, said it would spin off its aerospace and energy, including renewables, businesses into independent companies in the beginning of the second quarter next year and would list them on the New York Stock Exchange.

GE generated $2.7 billion from the sale of a portion of its shares in AerCap Holdings NV in the third quarter. It said it expects to fully monetize its remaining about 14.5% stake in the aircraft leasing giant in an “orderly manner over time”.

The Boston-based company now expects 2023 adjusted profit per share of $2.55 to $2.65, compared with an earlier forecast of $2.10 to $2.30.

Free cash flow for the year is estimated to be in a range of $4.7 billion to $5.1 billion, up from $4.1 billion to $4.6 billion expected in July.

Its adjusted profit for the third quarter came in at 82 cents per share, topping an average analysts’ expectation of 56 cents per share, LSEG data showed.

(Reporting by Rajesh Kumar Singh in Chicago and Abhijith Ganapavaram in Bengaluru; Editing by Sriraj Kalluvila, Jason Neely and Jan Harvey)

By Tom Wilson and Tom Westbrook

LONDON/SINGAPORE (Reuters) -Bitcoin rose 6% on Tuesday to to $35,198, its highest in nearly a year-and-a-half, on mounting speculation that an exchange-traded bitcoin fund is imminent.

That followed a 10% surge on Monday, when bitcoin posted its best day in almost a year, and the bullishness spread across the wider crypto market and into related stocks.

Any approval by the U.S. Securities and Exchange Commission (SEC) of an exchange-traded fund (ETF) that owns bitcoin on behalf of fund investors is predicted to fuel demand.

A spot bitcoin ETF, the argument goes, would allow investors previously wary of crypto access to the asset via the stock market, ushering in a new wave of capital to the sector.

“The value of … any asset, basically, is the amount of people using it,” said Steen Jakobsen, CIO at Saxo. “So the ETF would make a large audience and increase liquidity.”

Bitcoin, a volatile asset whose price has doubled so far this year, was last up 3.2% at $34,129. The second-largest cryptocurrency ether climbed to its highest since August.

Crypto-linked shares such as major U.S. exchange Coinbase Global and bitcoin owner MicroStrategy rose in after-hours trade.

Investment giant BlackRock is among several major U.S. financial firms with pending applications for bitcoin ETFs.

Speculation on their likely approval was fuelled by BlackRock’s iShares ETF listing on the website of clearing house DTCC. It was unclear when or why the iShares ETF was added to the DTCC list. DTCC and BlackRock did not immediately respond to requests for comment.

Anticipation also grew after reports this month, including from Reuters, that the SEC won’t appeal a court ruling it had been wrong to reject an ETF application from crypto firm Grayscale Investments.

“The SEC being pressured by the courts increases the probability” of an ETF approval, said Standard Chartered’s head of digital assets research Geoffrey Kendrick.

Last week BlackRock denied an erroneous report that its ETF had been approved.

Data on crypto derivatives analysis site Coinglass showed heavy bitcoin short-covering in the last 24 hours.

(Reporting by Tom Wilson and Elizabeth Howcroft in London, Tom Westbrook and Rae Wee in Singapore, and Brigid Riley in Tokyo.Editing by Shri Navaratnam & Simon Cameron-Moore)

By Shadia Nasralla

LONDON (Reuters) – Oil prices were stable on Tuesday following the previous session’s dip after a flurry of economic data from Germany, the wider euro zone and Britain sketched a bearish picture which could weigh on oil demand.

Brent crude futures were up 41 cents, or 0.5%, at $90.24 a barrel by 1122 GMT, while U.S. West Texas Intermediate crude futures rose 38 cents, or 0.4%, to $85.87 a barrel.

Euro zone business activity took a surprise turn for the worse this month, data showed on Tuesday, suggesting the bloc may slip into recession.

German readings suggested a recession in the country is well underway, while Britain’s businesses reported another decline in activity this month, underlining the risk of recession ahead of the Bank of England’s interest rate decision next week.

Further business activity data from the United States is due at 1345 GMT.

Meanwhile, the International Energy Agency said it expected fossil fuel demand to peak by 2030 based on governments’ current policies.

Both oil benchmarks fell more than 2% on Monday as diplomatic efforts in the Middle East, the world’s biggest oil-supplying region, intensified to contain the conflict between Israel and Hamas.

Hamas on Monday said it had freed two Israeli women, while sources said the U.S. had advised Israel to hold off on a ground assault in the Gaza Strip.

Julius Baer analyst Norbert Ruecker said “the risk premium inherent to oil prices should disappear within weeks…we see prices heading lower into next year.”

In the U.S., crude stockpiles were expected to have risen last week, a preliminary Reuters poll showed on Monday.

The report from the American Petroleum Institute industry group is due at 2030 GMT on Tuesday and the Energy Information Administration report at 1430 GMT on Wednesday.

(Additional reporting by Mohi Narayan in New Delhi and Yuka Obayashi in Tokyo; Editing by Jan Harvey and Chizu Nomiyama)