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U.S. Stocks drops as Utilities Sector Declines

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NEW YORK – U.S. stocks fell Wednesday, as buyers took a breather after a string of records from the Dow Jones Industrial Average.

The Dow shed 85 points, or 0.5%, to 16861. On Tuesday, it eked out a three-point gain to post a fourth-straight record-high close, the longest such streak of the year.

The S&P 500 index fell six points, or 0.3%, to 1945, and the Nasdaq Composite Index slid two points, less than 0.1%, to 4336.

Eight of the S&P 500′s 10 sectors were lower in midday trading, with utilities, financials and industrials shares making the steepest declines, all down roughly 0.7%. Utilities stocks have been the biggest gainers in the S&P 500 year-to-date, up 10%. Helping weigh down the Dow was a decline in shares of Boeing, which fell 2.3% amid broad weakness in the airline sector and after a Wall Street analyst downgraded its stock.Traders and strategists noted that recent quiet trading has continued in recent sessions, which have brought very small moves in broad indexes. Stock-market volatility is at its lowest level since the financial crisis.

“We’re seeing tepid trading in the broad market this week,” said Michael Purves, chief strategist and head of equity derivatives research at Weeden & Co. “It wasn’t that long ago that 4% moves every other day was normal.”

The market’s so-called fear gauge edged higher, but remained well below long-term averages. The Chicago Board Options Exchange’s Volatility Index rose 3.8% to 11.41. Its long-term average is around 20.

“The low level of volatility…is what we see as one of the big risks in the market,” said Peter Molloy, director with Edison Investment Research. “That’s going to change. There’s much more risk in the economy than the market is pricing in, in terms of a potential interest rate shock.”With little news to focus on, traders said the World Bank’s cutting of its global economic growth forecast to 2.8% for the year from its 3.2% forecast in January helped set a negative tone for stocks. The World Bank also highlighted that China’s faltering housing market was a growing concern.

No major economic data were scheduled for release Wednesday. Investors will be looking ahead to data on jobless claims and retail sales on Thursday, and wholesale inflation and consumer sentiment on Friday.

Theyield on the 10-year Treasury note ticked lower to 2.618% from a four-week high of 2.637% late Tuesday.

Crude-oil futures tacked on 0.2% to $104.58 a barrel, and gold futures gained 0.1% to $1,261.90 an ounce. The dollar edged up against the euro and lost some ground against the yen.

European markets fell, with the Stoxx Europe 600 down 0.6%, the first loss in six sessions after closing at a 6 1/2-year high on Tuesday.Data showed that U.K. unemployment fell more than expected in the three months to April, fueling expectations that the Bank of England might raise interest rates sooner than expected. Sterling rallied on the data.

The U.K.’s FTSE 100 index lost 0.5%, Germany’s DAX 30 index fell 0.8% and France’s CAC 40 shed 0.9%.

Asian markets were mostly higher, with Japan’s Nikkei Stock Average rising 0.5% and China’s Shanghai Composite tacking on 0.1%.

In corporate news, Synaptics Inc. rallied 25% after the company raised its revenue outlook for the current quarter. Synaptics also announced the acquisition of Renesas SP Drivers, a maker of display products for mobile gadgets, for about $475 million.

Morgan Stanley declined 1.2% after the bank said late Tuesday it is cutting jobs in its currency and interest rate trading businesses, citing a slowdown in those markets. The cuts will affect fewer than 100 people, The Wall Street Journal reported.

Orexigen Therapeutics tumbled 18% after the company said the U.S. Food and Drug Administration has extended the review of its investigational weight-loss drug.

– WALLSTREET JOURNAL

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Tesla Aims for 2028 Commercial Production of Flying Car

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Tesla has set a 2028 commercial production date for its new Roadster sports car that can briefly rise into the air using rocket technology.

According to CNN, the date was revealed when the manufacturers demonstrated its functionality on Thursday at a SpaceX testing facility in Texas, United States, where the two-seater vehicle performed a series of manoeuvres, including driving upside down before making a short airborne movement.

The prototype was operated without a driver during the test, with Musk saying the decision was taken “to make sure we don’t kill anyone.”

“Success is not guaranteed. I mean that. It’ll probably work, but if it doesn’t work, we’re at a safe distance,” he said.

READ ALSO: 2027 Election: ‘Your Future Is More Valuable’ — IGP Warn Youths Against Political Violence

CNN reported that the vehicle uses 10 nozzles and high-pressure air tanks to generate thrust, with Musk claiming it could accelerate from zero to 60 miles per hour in less than a second.

The Tesla boss attributed the development to cooperation between the electric vehicle manufacturer and SpaceX, the rocket company he also leads.

He described the project as “the results of what happens when you have a collaboration with the world’s best car company and the world’s best rocket company.”

Musk also sought to assure spectators that the demonstration was genuine, saying, “We need an audience to prove that it’s not AI or SI. So you guys can tell people you saw it with your eyes, because what you see with your eyes, you will not believe.”

Despite the display, questions remain about whether the vehicle can achieve sustained flight and how practical it would be for everyday transportation.

Roger Conner, curator for vertical flight at the Smithsonian’s National Air and Space Museum, told CNN that combining the requirements of road vehicles and aircraft presented significant engineering challenges.

“Aircraft are extremely sensitive to weight, whereas with ground vehicles you want them to have bumpers and crumple zones and all that,” he said.

“Inevitably, something that is a hybrid between the two is going to be a poor performing aircraft and a poor performing vehicle, and also quite expensive,” he added.

Conner questioned whether the demonstration amounted to flying in the conventional sense.

“We’re not talking about sustained flight. We are literally talking about hopping,” he said.

However, Jim Dukhovny, chief executive of flying car startup Alef, said the technology was achievable, while pointing to the difficulties involved in making such vehicles transition safely from vertical take-off to forward flight.

“It absolutely is 100% feasible,” he told CNN.

“That being said, the hardest part on all eVTOLs, and for us, it’s a transition from (rising) vertical to (moving) forward. It needs to be extremely careful, making sure you do not lose lift, and making sure it’s very stable,” he added.

CNN also reported that Alef’s prototype weighs about 254 pounds, uses eight propellers and is designed to carry one person.

Musk said Tesla intended to begin production of the new Roadster in 2028.

CNN reported that the latest display adds to Musk’s ambitions to push Tesla’s vehicle technology beyond conventional electric cars, although the prototype’s ability to operate as a practical flying vehicle has yet to be established.

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Marketers Eye Portion of FG’s Petrol Discount

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The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the Federal Government to add its member-stations to the petrol discount programme.

It cautioned that the current arrangement could limit the reach and deny vast consumers in underserved communities the benefits of the 30-day discount window.

The PETROAN also urged the FG to allocate at least 30 percent of the discounted petrol volume to outlets operated by its members.

READ ALSO: Tanzania Nears Completion of $42bn Equinor, Shell-Led LNG Project

The calls followed last week’s announcement by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, of a petrol discount at Nigerian National Petroleum Company Limited (NNPC Ltd) retail outlets, with priority given to public transport operators nationwide.

According to the National Publicity Secretary, Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, the exclusion of independent marketers could undermine the programme’s effectiveness, particularly in communities where NNPC retail outlets have limited presence.

He argued that independent marketers, with their extensive nationwide distribution networks, were better positioned to extend the benefits of the intervention to consumers in remote and underserved areas.

“Independent oil marketers have over 90 percent coverage and presence in the nooks and crannies of this country. You are giving NNPC that is situated only in the town. So how do the poor masses, whom you intend to ensure that this petroleum product will alleviate their sufferings, how would they now get it?” Ukadike asked.

He said the association was not opposed to the government’s policy but insisted that independent marketers should be included to ensure wider access to the discounted product.

“But it’s government policies; we are not against government policies, but let it be all-inclusive; let independent marketers be part of it,” he said.

Ukadike also urged the government to extend the discount period to 60 days, citing logistical challenges that could delay the movement of petrol from coastal depots to other parts of the country.

“And the 30 days should be extended to 60 days. Because of the circulation of petroleum products, most times it takes two weeks for a truck to leave Apapa and get to Gombe, Maiduguri, because of the bad road and all the rest of them and loading process,” he added.

Similarly, PETROAN National President, Billy Gillis-Harry, urged the Federal Government to allocate 30 per cent of the discounted petrol volume to the association’s retail outlets to facilitate broader national distribution.

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Tanzania Nears Completion of $42bn Equinor, Shell-Led LNG Project

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In the bid to transform Tanzania into the East African regional energy hub, the country is on the verge of concluding an agreement with a consortium of energy companies, including a $42 billion LNG project.

It was gathered that the project is designed to tap the 47.13 tcf of gas discovered in Tanzania’s deep offshore fields, part of the country’s estimated 57.54 tcf in total discovered reserves, the sixth-largest in Africa, behind Nigeria, Algeria, Senegal, Mozambique and Egypt.

READ ALSO: Shell Identifies Keys to Nigeria’s Energy Future

Equinor and Shell would be the lead operators, alongside involvement from ExxonMobil Pavilion Energy and Medco Energi, while state oil major, the Tanzania Petroleum Development Corporation (TPDC), would also hold an equity stake in the project.

“It’s almost there,” Khamis Mussa Omar, Tanzania’s finance minister, told Reuters.

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