Oil prices are unlikely to return to $80 a barrel before the end of the decade, the International Energy Agency said this morning. And if OPEC continues its policy of pumping oil at record rates to increase market share, they could remain close to $50 a barrel through 2020.
The agency’s World Energy Outlook is closely watched by the industry, and its new report is likely to dash any remaining hopes of a quick oil rebound. Slower global demand, improvements in efficiency, and growth in alternative energy sources are all taking their toll. You can read the full report here.
The agency also noted that wind and solar energy accounted for half of all new power plants in 2014 – while growth of coal is slowing, after rising to 29% of the global energy mix from 23% in 2000. But the agency warned that more conventional generating capacity will have to be put in place in the coming decades to deal with the intermittent nature of wind and solar. You can see the effects these days in Texas, where an abundance of wind energy has led companies to offer free electricity between 9 p.m. And 6 a.m.
More news below. Coins2Day’s Businessperson of the Year will be unveiled Thursday. CEO Daily readers made lots of good guesses yesterday… but none correct. Stay tuned.
| Alan Murray | |
| @alansmurray | |
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Top News
• Canadian Pacific explores takeover
The Canadian railroad operator is exploring a potential bid for Norfolk Southern, according to Reuters. The two companies have held preliminary merger talks, though it isn't yet clear if negotiations will advance. A separate media report said Canadian Pacific is trying to raise financing for a deal that would be worth over $24 billion. Investors cheered the news: shares of both Norfolk Southern and Canadian Pacific were up on Monday. Bloomberg
• Ericsson, Cisco agree to alliance
The networking giants have formed an alliance to combine their efforts to sell equipment for funneling Internet and telephone traffic. The pact is meant to complement each other by fillings in gaps in each firm's businesses. Cisco is primarily known for selling routers and switches, while Ericsson sells gear and services for managing mobile networks. The firms say the partnership will contribute an additional $1 billion or more in revenue to both companies by 2018. Coins2Day
• How Square is pitching its IPO
Payments company Square has released a video that features CEO Jack Dorsey, the company's team of executives, and merchants that use its service to tell investors about Square's mission. Some big takeaways? The video has more in common with Facebook's IPO roadshow and is less like how Twitter presented itself. The video also aims to show Square's deep bench of corporate executives: perhaps to ease worries about how Dorsey will run two public companies at the same time. Dorsey is also CEO at Twitter. Coins2Day
• Pimco wants Gross lawsuit tossed
Pacific Investment Management Co., known commonly as Pimco, has urged a state court to dismiss the wrongful termination claim of former portfolio manager Bill Gross, claiming the suit is "legally groundless." Pimco alleged Gross resigned on his own accord, adding they believed Gross didn't adhere to the values that Pimco expects of its leadership. Gross' lawyer responded, saying she was confident that the case would move forward and that Pimco's papers didn't dispute Gross' allegations "in any material way." Los Angeles Times
Around the Water Cooler
• Fast-food workers set to go on strike
Fast-food workers in almost 300 cities are planning to walk out on their jobs by the time you are reading this newsletter Tuesday morning. They are advocating a $15-an-hour wage, with strikes that are expected to begin around dawn. The protestors are also planning to demonstrate outside the Republican presidential debate in Milwaukee, which is taking place Tuesday night. All of the top Democratic presidential candidates back a $12-$15 minimum wage while most Republican contenders oppose raising it above the federal minimum of $7.25 an hour. USA Today
• Walmart raises privacy concerns
The world's largest retailer has tested a system that scans the face of everyone entering several of its stores – technology that can be used to identify suspected shoplifters and instantly alert store security on their mobile devices. While that experiment – which has ended – highlights the high-tech tools that retailers can employ to address theft, it also raises concerns about how to use the technology while still protecting shoppers' privacy. Coins2Day
5 things to know today
Oil Glut and Valeant Talks With Investors--5 Things To Know Today. Today's story can be found here.
