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(Reuters) -CenterPoint Energy on Monday announced it was planning $65 billion in capital spending from 2026 through 2035, as U.S. utilities rush to capitalize on surging power demand. Data centers dedicated to artificial intelligence and cryptocurrency, as well as the electrification of industries such as transportation, are driving up U.S. power consumption. CenterPoint also raised its annual adjusted earnings per share forecast to between $1.75 and $1.77 per share, from $1.74 to $1.76 per share earlier. The new range is 9% higher at the midpoint than last year. Analysts estimate $1.76 per share, according to data compiled by LSEG. The U.S. electric and gas utility also expects 2026 adjusted EPS targeting at least the midpoint of the range of $1.89 to $1.91 per share. 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 reiterated that electric peak load demand will increase about 50% to nearly 31 gigawatts (GWs) by 2031 and forecast peak power demand to double by the middle of the next decade. "Continued economic development is anticipated to drive significant growth in electric demand over the next decade, especially in Texas," the company said in a statement. CenterPoint in May said it intends to spend $4 billion in new projects to support its growth in Texas. Texas is one of the quickest-growing data center markets, with the business-friendly state also attracting other forms of energy-intensive industries such as computer chip manufacturing. CenterPoint delivers electricity and natural gas to more than 7 million customers across Indiana, Louisiana, Minnesota, Mississippi, Ohio and Texas. (Reporting by Katha Kalia in Bengaluru; Editing by Devika Syamnath)

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WASHINGTON (Reuters) -A group representing major U.S. airlines warned on Monday that a partial federal government shutdown could strain American aviation and slow flights, as air traffic controllers and security officers would be forced to work without pay and other functions would be halted. Airline trade group Airlines for America, which represents United Airlines, Delta Air Lines, American Airlines, Southwest Airlines and others, warned that if funding lapses "the system may need to slow down, reducing efficiency" and impacting travelers. (Reporting by David Shepardson; Editing by Leslie Adler)

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By Lewis Krauskopf (Reuters) -TRADING DAY Making sense of the forces driving global markets By Lewis Krauskopf, Markets Reporter  Jamie is enjoying some well-deserved time off, but the Reuters markets team will still keep you up to date on what's happening in markets. The spectre of a U.S. government shutdown loomed large across asset classes, with the Tuesday midnight deadline for an agreement little more than 24 hours away.    I'd love to hear from you, so please reach out to me with comments at . Today's Key Reads Today's Key Market Moves Today's Key Talking Points * Shutdown bearing down Investors were girding for a U.S. federal government shutdown that could disrupt a wide range of services as soon as Wednesday. Trump was meeting with congressional leaders on Monday in a last-ditch effort to reach an agreement. Markets have largely shrugged off past shutdowns, but there were reasons to think this time could be different, with stocks trading at record highs and pricey valuations. One issue is the delay of economic data in the event of a shutdown, starting with the U.S. employment report due on Friday, and whether such delays might muddy the ability for the Federal Reserve to make monetary policy decisions.  * Nearly three-quarters done Are we here already? Tomorrow marks the last day of the third quarter, which has been a bang-up period for U.S. stocks. The S&P 500 is up over 7% in the quarter, on track for its best third-quarter performance since 2020, while the tech-heavy Nasdaq Composite has gained nearly 11% in this quarter alone. The benchmark S&P 500 is well on its way to a third straight year of solid double-digit percentage gains. * L-B-Oh! In a jolt to the M&A landscape, video game developer Electronic Arts has agreed to sell itself to a group of private investors in a deal that valued it at $55 billion. That would be the largest leveraged buyout in history, if completed. The buyers of the videogame maker, whose titles include "Battlefield" and "Madden NFL," are Saudi Arabia's Public Investment Fund, Jared Kushner's Affinity Partners and private equity firm Silver Lake. What could move markets tomorrow? Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias. Trading Day is also sent by email every weekday morning. Think your friend or colleague should know about us? Forward this newsletter to them. They can also sign up here. (By Lewis Krauskopf, Editing by Nia Williams)

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(Reuters) -U.S. electric and gas utility CenterPoint Energy on Monday announced it was planning $65 billion in capital spending from 2026 through 2035. As AI data centers and the electrification of industries such as transportation drive up U.S. electricity consumption, utilities are increasing plans to spend on power infrastructure to meet rising demand. CenterPoint also raised its annual adjusted earnings per share forecast to between $1.75 and $1.77 per share, from $1.74 to $1.76 per share earlier. The new range is 9% higher at the midpoint than last year Analysts estimate $1.76 per share, according to data compiled by LSEG. The company expects 2026 adjusted EPS targeting at least the midpoint of the range of $1.89 to $1.91 per share. 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. "Continued economic development is anticipated to drive significant growth in electric demand over the next decade, especially in Texas," the company said in a statement. Texas is one of the quickest-growing data center markets, with the business-friendly state also attracting other forms of energy-intensive industries such as computer chip manufacturing. CenterPoint delivers electricity and natural gas to more than 7 million customers across Indiana, Louisiana, Minnesota, Mississippi, Ohio and Texas. (Reporting by Katha Kalia in Bengaluru; Editing by Devika Syamnath)

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By Michael S. Derby (Reuters) -A day ahead of what is expected to be very volatile conditions in money markets, a top Federal Reserve Bank of New York official said on Monday that markets are still flush with liquidity, central bank tools are in place to manage temporary hiccups, and in any case some level of chop in money market rates is healthy. “Our indicators currently suggest that reserves are still abundant,” said Julie Remache, deputy manager of the bank’s System Open Market Account and Head of Market and Portfolio Analysis. Her comments indicate she does not see a looming need to end the process of shrinking Fed holdings in an effort called quantitative tightening, or QT. She did note there has been some “firming” of repo rates, and ongoing QT may lead to keeping those rates up over time. Remache spoke ahead of quarter end, generally a time of heavy volatility in money markets. Those periods are often associated with shortages of liquidity and higher money market rates, pressures that usually abate in short order. But the current period is more fraught due to Fed actions.  Since 2022, the Fed has been allowing a set amount of bonds it owns to mature and not be replaced as it seeks to remove from the financial system the ocean of cash it added to markets to stabilize trading and stimulate the economy during the COVID-19 pandemic and its aftermath. Fed holdings more than doubled to a peak of $9 trillion and have since ebbed to $6.7 trillion.  Thus far, the contraction of liquidity has primarily taken out cash that markets did not need. From a peak of $2.6 trillion at the end of 2022, the Fed's overnight reverse repo facility has in recent weeks shrunk to negligible levels. As QT moves forward it will now start to remove what have been steady levels of reserves, which increases the chance of unexpected pressure in the market.  With the QT process now eating into underlying levels of liquidity, markets are speculating about how much further the process can continue. They are also expecting Fed liquidity facilities to get big action on Tuesday. Wrightson ICAP has penciled in as much as $300 billion in reverse repo inflows as market participants look for a short-term parking place for cash. SRF ARRIVES What will be more notable is what happens with the Standing Repo Facility, or SRF. Created in 2021 to provide cash loans in exchange for bonds, this Fed tool is designed to be a short-term shock absorber for liquidity shortfalls, allowing the Fed to watch longer-term trends when pressing forward with QT. The SRF also allows the Fed to shy away from interventions in markets to manage liquidity.  The challenge is that thus far, the SRF has seen little real-world usage. That is almost certain to change on Tuesday. Wrightson sees potential inflows of around $50 billion. Some in markets are unsure whether the SRF can do the job the Fed expects it to perform. Scott Skyrm of money market trading firm Curvature Securities said market rates are already above what it costs to borrow from the Fed, which should make SRF usage attractive, but it might now work when market participants are pulling back on their balance sheets. He noted the current 4.25% spread between general collateral repo and the SRF is very wide and should already be pushing firms to borrow cash from the Fed. The fact that this is not happening "means the market has no confidence that the SRF will do its job," Skyrm said.  Some have also worried that some eligible firms may be afraid that using SRF would signal weakness, even though Fed officials have encouraged use of the tool. Those who use the SRF will have their names publicly revealed in two years, as required by law.  In her speech, Remache cautioned that the Fed will not be surprised by potential churn. She said that even though the central bank’s rate control is working and strongly influencing the setting of interest rates generally, “money market rates still vary, and tend to rise on key reporting dates, including quarter ends, as banks optimize their balance sheets.” This firming of rates around the quarter end “is – within limits – normal, not concerning, and exactly what we expect as we continue to normalize our balance sheet.” On the SRF, Remache said the facility “can stem incipient rate pressure that, if left unaddressed, could threaten rate control.”  (Reporting by Michael S. Derby; Editing by Andrea Ricci and David Gregorio)

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By Prakhar Srivastava and Lananh Nguyen (Reuters) -Jefferies beat third-quarter profit estimates on Monday, as record advisory fees and a rebound in dealmaking gave investors an early read on how Wall Street's investment-banking business may perform this earnings season. Despite a short pause in April as tariff concerns briefly clouded sentiment, optimism around M&A has remained strong. Companies have pressed ahead with multibillion-dollar transactions across sectors, reflecting confidence in growth prospects and a willingness to commit capital even in a choppy policy environment. Dealmakers say the pipeline for 2026 remains strong, with expectations of Federal Reserve rate cuts adding to confidence that financing conditions will improve. "Interest rates are starting to come down, the economy is holding up, business confidence is reasonable and, as a result, M&A activity continues to pick up," Jefferies President Brian Friedman told Reuters in an interview. "We do expect it to continue." Jefferies' total investment banking net revenues jumped 20.3% to $1.14 billion from a year earlier.  Results from bigger rivals, including Morgan Stanley, Goldman Sachs and JPMorgan Chase, are due next month and will give a broader picture of how strongly Wall Street's dealmaking engine is recovering. DEALS REVIVAL Global dealmaking reached $2.6 trillion in the first seven months of the year, the highest since the 2021 pandemic-era peak, as a quest for growth in corporate boardrooms and the impact of a surge in AI activity helped overcome uncertainty caused by U.S. tariffs. "The recent periods have been characterized by greater strength in corporate M&A, and not yet a robust M&A market for private equity and sponsor-backed transactions," Friedman said. "Our backlog would suggest that there will be an increase in sponsor-oriented M&A activity … I think you’ll see increased activity into 2026." Advisory revenue at Jefferies rose 10.7% to a record of $655.6 million in the quarter. Jefferies said its equity and debt underwriting revenues climbed 20.7% and 36.3%, respectively. "Our equities business continues to perform well, our market position has clearly grown … and we expect that to continue," he said, citing the strength of Jefferies' equity research and advisory services, as well as its global presence in derivatives, swaps and prime brokerage. It acted as bookrunner on several high-profile U.S. IPOs during the quarter, including Firefly Aerospace and crypto exchange Bullish. Revenue from the capital markets business, which houses its trading desks, rose 6.9% to $723.4 million from the previous quarter. Earlier this month, Japan's Sumitomo Mitsui Banking Corp agreed to raise its stake in Jefferies, aimed at strengthening cross-border dealmaking and equity capital markets as Japanese capital flows surge. Net earnings attributable to common shareholders rose to $224 million, or $1.01 per share, in the three months ended August 31. That compares with $167.1 million, or 75 cents per share, a year earlier. Analysts on average had expected a profit of 80 cents per share, according to data compiled by LSEG. (Reporting by Lananh Nguyen in New York and Prakhar Srivastava in Bengaluru; Editing by Alan Barona)

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By Shivansh Tiwary, Saeed Azhar, Anirban Sen and Mike Spector NEW YORK (Reuters) -U.S. auto parts maker First Brands filed for bankruptcy protection on Monday after disclosing liabilities exceeding $10 billion, marking the collapse of a company whose rapidly deteriorating finances have shocked debt investors in recent weeks. First Brands is expected to soon disclose an accounting irregularity amounting to nearly $2 billion, according to people familiar with the matter. The company's board is investigating the matter, one of these people said, confirming an earlier report in the Wall Street Journal.  The company, whose fortunes unraveled in recent weeks as it grappled with a debt pile from a flurry of acquisitions over the past few years, has obtained $1.1 billion in debtor-in-possession financing from its first-lien lenders to support ongoing operations, it said in a statement.  Financial troubles at the auto parts supplier, coupled with the recent bankruptcy of subprime auto lender Tricolor Holdings, have rattled debt investors and stoked fears of broader stress in corporate debt markets, according to bondholders and bankruptcy experts. The high-profile collapse of First Brands has raised questions among investors about potential ripple effects across the automotive parts industry, although experts said automaker supply chains are not likely to be affected broadly since First Brands is primarily an aftermarket parts provider.  Ohio-based First Brands, which is owned by businessman Patrick James, said that its Chapter 11 cases pertain solely to U.S. operations, and expects its global operations to continue uninterrupted. In its Chapter 11 petition, First Brands estimated liabilities in the range of $10 billion to $50 billion, while its assets were estimated between $1 billion and $10 billion.  Bankers and creditors had been racing to restructure First Brands' debt as investor confidence eroded leading up to the filing, with several of its associated companies also declaring bankruptcy. Privately held First Brands makes replacement components including filters, brakes and lighting systems for the automotive aftermarket, and emerged as a significant player through debt-financed acquisitions of rival auto parts makers. Its well-known brands include Raybestos brake solutions, TRICO wiper blades, and FRAM filtration products. Last week, ratings agency Fitch downgraded First Brands' credit rating, saying the company's options for managing its debt were increasingly limited to off-market solutions. HIGH-PROFILE COLLAPSE Over the past week, First Brands' loans plummeted in value as its bondholders braced for the group's debt to be restructured.  Several Wall Street lenders and hedge funds, including Jefferies and Millennium, are exposed to First Brands' supplier invoice-linked facilities. More than a dozen companies affiliated with First Brands, including Carnaby Capital Holdings, filed for bankruptcy protection last week, according to court documents signed by First Brands' owner and CEO Patrick James. The affiliated entities had secured loans that were backed by guarantees from First Brands, Reuters reported on Friday. Carnaby Capital Holdings' petition listed assets of over $500 million and liabilities exceeding $1 billion. In addition to its debt, the company has several billion dollars more in financing facilities that are tied to its customers and suppliers, Reuters has previously reported. The latest filings reveal that First Brands and its related intermediaries had more than $8 billion of debt and inventory-backed financing. This figure is not linked to its customer and supplier invoices, with the company listing about 30 financing sources who were listed as unsecured creditors from whom it has borrowed more than $1 billion, according to the filings.  Ryan O'Malley, head of portfolio management at Ducenta Squared Asset Management, said the cases of First Brands and the poor second-quarter results of used-car retailer CarMax had not sparked broader investor concerns over the asset-backed securities bond market. However, he said, these two cases indicated some weakness in consumer auto spending, probably resulting from years of high interest rates. Law firm Weil, Gotshal & Manges, investment bank Lazard, and consulting firm Alvarez & Marsal are advising First Brands on its bankruptcy proceedings. Gibson, Dunn & Crutcher and Evercore are advising the creditor group.  (Reporting by Shivansh Tiwary and Shivani Tanna in Bengaluru; Additional reporting by Mike Spector and Davide Barbuscia in New York; Editing by Sriraj Kalluvila, Mrigank Dhaniwala, Megan Davies and Marguerita Choy)

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By Lucia Mutikani WASHINGTON (Reuters) -The U.S. Labor Department said on Monday its statistics agency would suspend economic data releases, including the closely watched monthly employment report for September, in the event of a partial government shutdown. The employment report, crucial for decision-making by officials at the Federal Reserve, businesses and households, is scheduled for Friday. Government funding will expire at midnight on Tuesday unless Republicans and Democrats in Congress can agree to a last-minute temporary spending deal. The Labor Department identified the Bureau of Labor Statistics (BLS) among the key agencies whose activities would cease during a lapse in funding. President Donald Trump was due to meet with Republican and Democratic leaders on Monday. The BLS confirmed it would "suspend data collection, processing and dissemination" should the government shut down. The statistical agency, however, said the August Metropolitan Area Employment and Unemployment report due on Wednesday would be published as part of shutdown procedures. It said a prolonged shutdown could delay the release of other data. "Once funding is restored, BLS will resume normal operations and notify the public of any changes to the news release schedule on the BLS release calendar," the agency said in a statement. It was not clear whether the weekly jobless claims report would continue to be published. The data is collected by states, which run the unemployment insurance programs, but the BLS does the seasonal adjustment. CONCERNS ARE RISING OVER DATA QUALITY The Commerce Department, whose Bureau of Economic Analysis and Census Bureau produce data including gross domestic product and retail sales, was yet to release its shutdown plans. Possible delays publishing the employment report would come at a time when concerns are growing over the quality of government-produced economic data, long viewed as the gold standard. The BLS warned "a reduction in quality of data collected might impact the quality of future estimates produced." The BLS has suffered years of underfunding under both Republican and Democratic administrations. That situation has been worsened by mass firings, voluntary resignations, early retirements and hiring freezes, which are part of an unprecedented campaign by the Trump administration to drastically reduce the size of government. Response rates for the employment report have declined and the agency has suspended data collection for portions of the consumer price index in some areas across the country. The nomination of Heritage Foundation economist E.J. Antoni, a critic of the BLS, to head the statistics agency is also adding another layer of worry over data quality. Economists across political ideologies have described Antoni as unqualified for the position. Should September's CPI report be delayed, that could leave the Social Security Administration unable to make its annual Cost of Living Adjustment announcement, which retirees depend on to plan their budgets. (Reporting by Lucia Mutikani and Courtney Rozen; Editing by Mark Porter and Andrea Ricci)

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By Sinéad Carew and Niket Nishant (Reuters) -The Nasdaq composite and S&P 500 closed modestly higher on Monday as investors bought heavyweight technology stocks and shrugged off the uncertainty of a potential U.S. government shutdown and hawkish remarks from a Federal Reserve official. The technology sector provided the benchmark S&P's biggest boost as investors bet on growth from artificial intelligence and expectations that the Fed will keep cutting interest rates as it grapples with persistent inflation concerns and labor market uncertainties. One of this week's major focus points for Wall Street however, is a standoff between Republicans and Democrats over funding that has raised the prospect of a government shutdown beginning Wednesday, the first day of the U.S. government's fiscal 2026. Even as the Labor Department prepared for a potential delay of its September jobs report in the event of a shutdown, this did not seem to be the key market driver, said Lindsey Bell, chief strategist at 248 Ventures in Charlotte, North Carolina. "Investors are clinging to the positives," Bell said, pointing to rate easing hopes and signs of economic resilience from recent releases including housing market and consumer spending data. "The market is not going to shoot to the moon, because this is a risk. But investors can look through the potential for a shutdown, because if it does occur it will likely be resolved quickly and the market can resume focusing on the things that do matter, like earnings, monetary policy and AI investments." While shutdowns have not tended to impact corporate results historically, the imminent threat may have limited gains and kept trading volume light on Monday, according to Burns McKinney, portfolio manager and NFJ Investment Group in Dallas, Texas. "The only reason it would truly move markets is if it affects the bottom line. Historically speaking, government shutdowns are brief and they don't have an impact on profitability so investors tend to be forward-looking," said McKinney. "It's just like smoke on a racetrack. They just keep the wheels straight, manage through the stress and move forward through the smoke." According to preliminary data, the S&P 500 gained 17.52 points, or 0.26%, to end at 6,661.22 points, while the Nasdaq Composite gained 107.99 points, or 0.48%, to 22,592.06. The Dow Jones Industrial Average rose 69.42 points, or 0.15%, to 46,316.71. Investors were also monitoring Fed policymakers' commentary for any signs of concern over the potential loss of economic visibility should a shutdown materialize. Cleveland Fed President Beth Hammack, among the most hawkish Fed officials and not a voter on policy this year, said on Monday the central bank needed to maintain restrictive monetary policy to cool inflation. Traders, however, are pricing in a roughly 90% chance of a 25-basis-point rate cut at the next Fed meeting, according to CME Group's FedWatch tool. With oil prices falling more than 3%, the energy sector was the biggest laggard among the S&P 500's 11 major industry sectors during the session. Technology was among the biggest gainers with big pushes from AI chip leader Nvidia along with Microsoft. Electronic Arts shares rallied after the game publisher agreed to be taken private in a $55 billion deal, fueling hopes for broader deal prospects, said Bell of 248 Ventures, who saw the transaction as "confirmation that the M&A market is open." Lam Research shares advanced after Deutsche Bank upgraded the rating on the chip-making equipment firm to "buy" from "hold." AppLovin set a fresh record high, also providing one of the biggest lifts for the S&P 500. Morgan Stanley raised the target price on the stock to $750 from $480. After U.S. President Donald Trump shared a video on Sunday promoting the health benefits of hemp-derived cannabidiol, U.S.-listed shares of cannabis-related companies rose. Canopy Growth rallied along with Cronos Group and Tilray Brands. (Reporting by Sinéad Carew in New York, Niket Nishant and Sukriti Gupta in Bengaluru; Editing by Sriraj Kalluvila, Shilpi Majumdar and Richard Chang)

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(Reuters) -Once Upon a Farm, the organic baby food company co-founded by actor Jennifer Garner, revealed higher six-month revenue in a U.S. IPO filing on Monday, becoming the latest company to seek a listing amid strong investor demand. U.S. IPO activity has picked up in recent months, reversing a slowdown earlier in the year when trade-policy uncertainty curbed momentum. Black Rock Coffee Bar, cybersecurity firm Netskope and WaterBridge Infrastructure all saw strong debuts earlier this month, while the largest U.S. pork processor Smithfield Foods raised $571.7 million in an IPO in January. The Berkeley, California-based firm reported revenue of $110.6 million for the six months ended June 30, up from $65.8 million in the year-ago period, according to the filing. In June, Reuters reported that the company had confidentially filed for an IPO. Once Upon a Farm was founded in 2015 by Cassandra Curtis and Ari Raz, and makes organic products for babies, toddlers and children, including cold-pressed pouches, oat bars and frozen meals sold in supermarkets across the United States. Garner, known for the TV drama "Alias" and films including "Dallas Buyers Club" and "Catch Me If You Can," and John Foraker, the former chief executive of Annie's, joined as co-founders in 2017. Once Upon a Farm will list on the NYSE under the symbol "OFRM". Goldman Sachs, J.P. Morgan, BofA and William Blair are among the underwriters for the offering. (Reporting by Prakhar Srivastava in Bengaluru; Editing by Sahal Muhammed and Tasim Zahid)

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