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Albanese, an Australian company, pledges to establish a strategic reserve for critical minerals
The Australian centre-left Labor Government pledged on Thursday an initial investment A$1.2 billion (roughly $763 million) in order to establish a strategic reserve for critical minerals. It is looking to create a different supply chain within a Chinese dominated market. The Prime Minister Anthony Albanese said that the reserve, which is expected to be established in nine days, would use the mineral deposits of the country and increase its economic resilience. Albanese stated in a press release that "we need to do more" with the natural resources needed by the world, which Australia can provide. After President Donald Trump imposed tariffs against Chinese goods, China placed restrictions on exports of minerals that are vital for everything from smartphones to EV batteries and infrared weapons. This has squeezed supply to the West. China is the top producer in the world of 30 out of 50 critical minerals, according to the U.S. Geological Survey. Australia also has some of its largest deposits of critical minerals. Albanese stated that the government will buy minerals critical to commercial projects, or create an option for a set price and hold security over assets. The government will establish stockpiles for some minerals produced in accordance with offtake agreements. Albanese stated that "it will allow us to deal with market and trade disruptions in a stronger position, as Australia will have access to a significant amount of resources for global demand." Minerals from the strategic reserve will be available to key domestic and international partners. Albanese stated that a task force would be formed to finalise and consult on the scope and design for the strategic reserve. This reserve is expected to become operational in the second quarter of 2026.
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Petrobras Board approves agreement with Unigel for fertilizer plants
Petrobras, the state-run Brazilian oil company, said that its board of directors had authorized it to sign a settlement agreement with Unigel Chemical Company to settle a legal dispute over two fertilizer factories in northeastern Brazil. Petrobras stated in a filing of securities that the agreement would restore Petrobras ownership over two fertilizer factories located in Sergipe state and Bahia state. Petrobras announced that the plants would resume operations after a process of bidding to contract for services to operate and to maintain them. The deal, however, still needs to be approved internally within Unigel, and it must also meet certain conditions before taking effect. Unigel didn't immediately respond to an outside of normal business hours request for comment. Petrobras leased two nitrogen fertilizer factories to Unigel under a 10-year contract in 2019. Unigel has shut down both plants since 2023 citing high gas prices as the reason for their closure. Both companies are involved in arbitration related to their lease agreement, which includes disagreements about the shutdown of the operations, Unigel’s investments and gas supply terms. Announcement comes after Report on Friday According to sources, the Petrobras board approved plans to select partners to restart operations at fertilizer plants. (Reporting andre Romani, additional reporting by Roberto Samora).
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The rosy outlook of chipmaker TI soothes tariff concerns for the moment
Texas Instruments announced a second-quarter revenue forecast that was above Wall Street expectations on Wednesday. The company attributed this to a robust demand for analog chips, despite the fact that the threat of U.S. Tariffs has created uncertainty in the semiconductor industry. TI shares rose more than 5% after-hours following the announcement. This was the first major U.S. semiconductor company to provide an outlook this earnings season. The stock price had dropped over 17% this year due to macroeconomic worries and trade tensions. LSEG data shows that TI estimates revenue for the quarter ending June between $4.17 and $4.53 Billion, compared to analysts' average estimate $4.10 Billion. The earnings per share is projected to be between $1.21-$1.47, which is also higher than the average estimate. Kinngai Chang, senior analyst with Summit Insights Group, says that the positive forecast is driven by "cyclical demand recovery" and possible tariff pull-ins. Haviv Ilan, the CEO of Haviv Group, sounded a cautionary note. On a call after earnings, Haviv Ilan said, "We'll have to wait and see" what happens in the second half 2025, as well as into 2026. He cited ongoing uncertainty regarding tariff policy. According to an April notice by the Chinese main semiconductor association, while President Trump has exempted for now semiconductors from further levies and tariffs, Beijing has imposed high tariffs on U.S. made chips. Analysts asked Ilan if customers were stockpiling the chips in anticipation of expected taxes. I would guess that in a time of uncertainty, you might want to stock up on a bit more inventory. He said. Tore Svanberg, Stifel's analyst, noted that it may be too soon to determine the impact of the increased tariffs and escalating Sino U.S. Trade tensions on the chip company and the industry as a whole due to the ongoing tariff negotiations. CHINA WORRIES TI, a company with significant manufacturing capacity in America, derives about a quarter of its revenue annually from China. This makes it vulnerable to ongoing tit for tat tariffs between Beijing & Washington. Ilan stated that the company could use its manufacturing facility in China to meet any needs. Since years, the legacy chipmakers have worked to adopt a “China-for China” policy. They set up fabs to meet domestic demand in the face of escalating tensions. TI is facing stiff competition in China, where state subsidies have boosted the production of mature-node chips. Ilan stated that "the competition in China has intensified." (Reporting by Arsheeya Bajwa in Bengaluru; Editing by Tasim Zahid)
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Gold sinks and stocks rise as US tariffs on China are not sustainable
The dollar rose against the euro, and other currencies on Wednesday. Meanwhile, gold-backed safe-havens fell as the Trump Administration signaled its willingness to deescalate the trade war. U.S. Treasury secretary Scott Bessent stated that the high tariffs between China and the United States are not sustainable. Meanwhile, U.S. president Donald Trump indicated he would be open to easing the trade tensions. Persons familiar with the discussions said that the White House was open to a rate reduction on Chinese imports to help advance the negotiations with Beijing, but would not be doing so alone. Trump, who had threatened to fire Federal Reserve Chairman Jerome Powell on Tuesday evening, has now backed down from his threats. The market is looking for a softer stance towards China on trade and tariffs. It would also be nice to see a sign of a willingness to negotiate, and to ease off from the current high tensions. Investors have been concerned about U.S. assets due to Trump's tariff war. Stocks rose on Wednesday as well, thanks to some positive earnings reports in the U.S. Boeing shares rose 6.1% after the company reported a smaller-than-expected quarterly loss. The Dow Jones Industrial Average rose by 419.59, or 1.07 percent, to 39.606.57. The S&P 500 gained 88.10, or 1.67% to 5,375.86. And the Nasdaq Composite increased by 407.63, or 2.50 percent, to 16,708.05. Tesla shares rose 5.4% despite the fact that company results were below analyst expectations. Elon Musk, the Tesla CEO, said in a conference call with analysts that he will significantly reduce his work at the Department of Government Efficiency starting next month so he can focus on his companies. Tech and consumer discretionary accounted for the largest percentage gains among the 11 major S&P 500 sectors, while consumer staples, energy, and other areas lagged. The MSCI index of global stocks rose by 11.95 points or 1.50% to 808.21. The pan-European STOXX 600 ended up 1.78%. Spot gold fell 3% after hitting record highs recently, to $3,281.6 per ounce. The dollar rose 1.27% to 143.435 yen. The dollar last gained 1.32% against the Swiss Franc at 0.8298. The euro fell 0.86%, to $1.132. This is a drop from $1.15 earlier in the week. That was a 3-1/2 year high. Benchmark 10-year rates, which move in the opposite direction to prices, declined on Wednesday. This was a partial relief for investors who had been concerned about Trump's new trade and economic policies. The bond rally lost steam as the economic data released Wednesday was mixed with some surprises on the upside. One of them was a reading of the U.S. Department of Commerce for home sales in March that was higher than expected. The benchmark 10-year Treasury yields last stood at 4.385%. This is a little lower than Tuesday. The 30-year yields fell by five basis points, to 4.83%. Citadel's CEO and founder Kenneth Griffin warned that Trump's government must be cautious about the potential damage done to U.S. Treasury bonds. The price of oil ended lower. U.S. crude fell $1.40, settling at $62.27 per barrel. Brent crude dropped $1.32, settling at $66.12. (Analysts Amanda Cooper and Wayne Cole, Sydney, and Lewis Krauskopf, New York, and Bernadette, Baum, Gareth Jones and Mark Heinrich in New York, and Sandra Maler, Cynthia Osterman, and Sandra Maler, contributed to this report.)
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FirstEnergy's profit beats estimates for the first quarter on higher electricity prices
FirstEnergy, a utility company, beat Wall Street expectations for its first-quarter adjusted profits on Wednesday. The utility was helped by a rate increase. U.S. Electric utilities are investing more in infrastructure as a result of extreme weather and a growing demand. This is to meet the demand, but also improve resilience. Rate case proceedings are used by utilities to calculate the cost of electricity, natural gases, private water, and steam according to investments made by customers. As the demand for electricity from AI data centres, domestic manufacturing and electrification of industry increases, power bills will rise. The company reported that its total quarterly distribution deliveries increased by more than 4% in comparison to last year when the weather was mild. The adjusted quarterly profit for its integrated and distribution segments increased by 10 cents each from the previous year. FirstEnergy provides electricity to about 6,000,000 customers in Ohio, Pennsylvania and New Jersey. It also serves West Virginia, Maryland, West Virginia, and West Virginia through its three segments: distribution, integrated transmission, and stand-alone. According to data compiled and analyzed by LSEG, the Akron, Ohio, based company posted an adjusted profit per share of 67 cents in the first three months, compared to analysts' estimates of 61 cents. Reporting by Tanay and Pooja in Bengaluru, editing by Alan Barona
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GM will increase production at Ohio transmission plant
General Motors confirmed on Wednesday that it is increasing the production of transmissions in its Toledo, Ohio plant, and shifting away from manufacturing EV drive units to parts for gasoline cars. Transmission plant is used to support the production of light trucks in Fort Wayne, Indiana. First reported that GM was going to increase production in the Indiana assembly plant after U.S. president Donald Trump announced 25% auto import tariffs. A spokesperson from the automaker stated that the shift in production at Toledo was not due to tariffs. General Motors is revising production plans for Toledo Propulsion in order to accommodate additional capacity of ICE propulsion units, in line with the current market demand. When GM After a $760-million investment, Toledo became the first U.S. factory to produce EV powertrains. The automaker still hasn't produced retail drive units at the Toledo facility. In a memo to workers, Rob Morris, Toledo's plant director, explained that the company has decided to increase capacity in order to meet the current demand for ICE products. The memo stated that the second drive-unit production line would not be updated, and one of the production lines for drive units in the facility will be converted into a transmission. GM made some other changes to its EV plan, including delaying the start of EV production at Orion Assembly Plant in Michigan. It failed to meet its EV production target of producing and wholesale 200,000 EVs across North America by 2024. Instead, it ended up with 189,000 units. Separately, Trump's Tariffs The automakers have changed their ways or expedite investment plans. Some automakers and suppliers are seeking to increase investment in the U.S., to avoid the steep duties. Others are waiting to see whether the duties will stick. Center for Automotive Research Analysis Find out Trump's 25% tariffs on autos, imposed by him in early April, will cost automakers in the U.S. $108 billion in 2025. Import taxes on auto parts are still scheduled to be implemented by May 3. (Reporting and editing by Diane Craft in Detroit, Kalea Eckert and Nora Eckert)
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Newmont profits beat estimates, as the gold rally outweighs weak production.
Newmont, the world's largest gold miner, beat Wall Street expectations for its first-quarter profits on Wednesday. A rally in bullion helped offset lower production and sent its shares up by 2% after-hours. Gold prices have been increasing over the last few quarters, and reached record highs from January to March, when fears over Donald Trump's unpredictable tariff plans sparked a global trade conflict, driving investors towards the safety of gold. Newmont's average quarterly realized gold price jumped 41%, to $2,944 an ounce. Gold production, however, fell 8.3%, to 1,54 million ounces. This was due to lower contributions from non-core operations. In February of last year, the company announced that it would sell off non-core assets to reduce its debt. As of March 31, this debt was $3.22 billion. Newmont announced late last year that it would sell the Eleonore Mine in Canada to UK-based Dhilmar Ltd. for $795 millions and its Musselwhite Gold Mine, located in Ontario, to Orla Mining. The deal was valued at $850million. Discovery Silver, a gold mining company, announced in January that it would purchase Newmont's Porcupine Operations stake in Ontario, Canada for $425 millions. Newmont's quarterly total costs, which reflect the industry's overall expenses, increased 14.7% in the quarter January-March due to lower production. According to LSEG, on an adjusted basis the company earned $1.25 a share for the three months ended March 31. This compares with the analysts' average estimate, which was 90 cents a share. Reporting by Tanay in Bengaluru, Editing by Tasim and Devika Syamnath
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California Governor seeks assistance for struggling oil refiners
California Governor Gavin Newsom directed state officials in California to increase efforts to ensure reliable fuel supplies to the nation's largest auto market. This prompted oil companies to blame state policy for difficult business conditions, and high pump prices. Newsom's April 21 letter to California Energy Commission vice chair Siva Gunda was seen by us on Wednesday. This came just days after Valero Energy announced that it would permanently close or restructure the refinery in Benicia by April 2026. Benicia refinery represents about 9% state crude oil refining capability. Newsom wrote: "I am writing to ask you to intensify the efforts of the State to work closely and immediately with refiners to plan short and long term, as well as to ensure that Californians have access to reliable, safe and affordable transportation fuels." Newsom said that, although the demand for gasoline in California was on a downward trend, it would continue to exist in years to come. The Governor set a deadline of July 1, for the CEC, to make recommendations on how to manage fuel supplies in the state during the energy transition. He also asked the agency to reinforce its belief that refiners could operate profitably. California has one of the most aggressive policies on climate change in the United States and has set a goal for 2035 to ban all new gasoline powered cars. California has some of the highest gasoline prices in the United States, due to its reliance on imports to compensate for a declining supply. Newsom claimed that the Trump administration is responsible for the economic instability and market turmoil which are harming oil companies. A trade group for refining said this assertion was false and blamed California instead. Chet Thompson of the American Fuel & Petrochemical Manufacturers said that Governor Newsom's letter directing the California Energy Commission to'redouble its efforts' to work with refiners to'make them see the value' in serving the Californian market is a joke and a blatant attempt to cover his behind," he wrote in an emailed message. Fuel manufacturers in California struggle to compete and California drivers pay the highest prices for fuel because of state policies. Not the new administration in Washington. Reporting by Nichola Choy Editing by Marguerita Groom
North Sea energy companies look beyond UK after tax squeeze
North Sea oil and gas manufacturers are combining and shifting overseas as Britain's. windfall tax slashes profits and as the opposition Labour Celebration. threatens more tax if it wins the next basic election.
The modification of technique might accelerate the decrease of. domestic production, risking increased dependency on imports,. higher vulnerability to greater customer costs and more job. losses.
Oil majors such as Shell, Chevron and Exxon. Mobil have long since drawn back from the ageing basin. in pursuit of more rewarding oilfields, divesting possessions to. smaller sized producers such as Harbour Energy, Ithaca Energy. and Serica Energy.
These independent oil and gas producers are now looking. further afield and combining to cut expenses and increase income.
Unfortunately, the UK government has turned the UK North. Sea into a very harsh company environment, Gilad Myerson,. executive chairman of Ithaca Energy, among the biggest North. Sea producers, informed last month.
In 2022, the UK imposed a 25% Energy Earnings Levy on the. sector after a jump in energy costs resulting from Russia's. invasion of Ukraine swelled earnings as customers dealt with greater. costs, following comparable steps in other European countries.
Financing minister Jeremy Hunt consequently extended the levy. until 2029 and raised it to 35%, bringing the total tax burden. to 75%, amongst the greatest worldwide. The levy, nevertheless,. exempts most revenues that are re-invested in oil and gas. production, in what is called the investment allowance.
The short-lived windfall tax on oil and gas firms actively. motivates investment to create jobs and grow the economy-- the. more financial investment they make the less tax they will pay, a. spokesperson for the UK Treasury said.
The tax eliminated most revenues for producers last year and. many, including Harbour Energy, the biggest North Sea manufacturer. pared back financial investments and cut numerous tasks.
Serica acquired smaller rival Tailwind Energy and is eyeing. neighbouring North Sea countries.
We're more thinking about doing something that diversifies. us beyond the UK right now, because that's most likely our. biggest danger, said David Latin, Chairman of Serica Energy,. highlighting opportunities in Norway.
Ithaca, which has stakes in two of the largest remaining. undeveloped oilfields in the North Sea, has actually consented to combine. its operations with the UK assets of Italy's Eni.
When you have a fiscal obstacle, the bigger you are, the. more powerful you are, Ithaca's Myerson said, adding the business was. wanting to expand overseas to Norway, Denmark and elsewhere.
Harbour Energy, on the other hand, agreed in December to get oil. and gas properties from Wintershall Dea in an $11.2 billion offer. which will dramatically cut its reliance on the UK.
And last week, Chevron stated it prepares to sell its remaining. assets after more than 55 years in the basin, although the. decision was unassociated to the windfall tax, it stated.
PRICES AND REVENUES RETREAT
Rates of oil and gas, and in turn, earnings of energy firms. have pulled away from the really high levels seen in 2022.
The North Sea oil market has actually complained it needs. government assistance to optimize production from diminished. reserves, rather than policies it states prevent investment.
Any 'windfall' due to high product prices has actually long gone. and the high tax scenario is ill-suited to a mature oil and gas. basin such as the UK North Sea, Serica's Latin said.
Climate activists have gotten in touch with Britain to stop all. financial investments in new oil and gas production in order to satisfy its. target to reduce greenhouse gas emissions to net absolutely no by 2050.
And as Britain heads into elections this year, the. opposition Labour Celebration which commands a strong lead in surveys,. has actually pledged to increase the windfall tax by 3% to help fund its. energy shift method. Labour likewise seeks to get rid of. loopholes, which refer to the financial investment allowance, according. to consultancy Wood Mackenzie.
We will deliver the most substantial financial investment in the. North Sea in a generation, as we pursue our objective for energy. independence and lower costs, Ed Miliband, Labour's Shadow. Energy Secretary, stated in a statement.
QUICK DECLINE
Production in the North Sea has decreased to around 1.2. million barrels of oil equivalent daily (boed) recently. from a peak of over 4.5 million boed in 1999.
Experts at brokerage Stifel quote that over the. staying life-span of the North Sea basin, a higher tax rate and. removal of the financial investment allowance would decrease financial investment by 30. billion pounds ($ 38 billion) more than its existing estimates,. causing a faster decline in output.
Under that scenario, Stifel tasks that by 2030, the UK's. oil and gas output would cut in half, and it could be paying around. 2.5 billion pounds ($ 3.2 billion) a year to import 80% of its. gas.
Serica's financing chief Martin Copeland stated the recent. debt consolidation in the North Sea has been substantially driven by. tax optimization, calling it an indication of gathering together for. warmth against an extremely, very chill backdrop.
(source: Reuters)