Latest News
-
Tanure, a Brazilian tycoon, offers to purchase Braskem's petrochemical company.
A securities filing on Friday showed that Brazilian businessman Nelson Tanure had made an offer to purchase a controlling interest in Braskem. Tanure is looking to expand his investment portfolio by partnering with Latin America's biggest petrochemical company. Local media reported Tanure's proposal earlier in the day. This boosted Braskem shares traded in Sao Paulo by more than 9%. It was the largest gainer of the benchmark Brazilian stock index Bovespa which closed at 0.4%. According to a filing by the petrochemical company, which cited Novonor’s letter, the tycoon wants to buy the controlling stake of Braskem from conglomerate Novonor for an undisclosed amount. Tanure confirmed in a separate press release that he is committed to long-term investments to strengthen Braskem. Both parties have agreed that they will only hold exclusive discussions about a potential deal. The state-owned oil company Petrobras, which is also a major shareholder in Braskem, has been looking to sell its stake for many years. It has failed to reach a successful agreement despite numerous talks with companies such as Abu Dhabi National Oil Company, LyondellBasell and Unipar Carbocloro. Petrobras has the right to evaluate the deal as it is the preferential buyer of the Braskem stake if it were to be sold. Novonor creditors would also have to approve the deal as the stake was pledged as collateral. Tanure stated that Braskem would not have a promising future without a joint, constructive, and lasting partnership with Petrobras. Tanure suggested partnering the two companies for the use natural gas from Brazil’s pre-salt, in the state of Rio de Janeiro. Petrobras has declined to comment. Tanure has also promised to find a solution to the 2018 Maceio disaster, in which officials claim Braskem’s salt mines caused the ground to destabilize, cracking houses and forcing thousands of residents out of their homes. Tanure said that "a consistent deleveraging program will be crucial to strengthening Braskem’s capital structure". Tanure is known to invest in companies that are undergoing restructuring. He is a major investor in Rio de Janeiro’s energy distributor Light, oil producers Prio, and homebuilders Gafisa. Odebrecht was synonymous with corruption in Brazil in the 2010s due to its involvement in the Car Wash corruption probe. In 2020, it changed its name from Odebrecht to Novonor to try to erase that past after a "five-year transformation". Reporting by Luciana Magnhaes, Sao Paulo. Additional reporting by Rodrigo Viga Gaier, Rio de Janeiro. Writing by Gabriel Araujo. Editing by Rosalba o'Brien.
-
ENAMI, a Chilean lithium company, says that a joint venture with Rio Tinto will begin production in 2032.
Ivan Mlynarz, the company's chief, said that ENAMI, Chile's state-owned mining firm, aims to start production of its new Rio Tinto Lithium partnership at Altoandinos in 2032, with 35,000 metric tonnes per year. Production will then increase over three years, to 75,000 tons. Rio Tinto will play a key role in the lithium industry of Chile with the Altoandinos and Maricunga projects, which it spearheaded this week alongside the state-run copper manufacturer Codelco. Rio Tinto is committing $425 million initially to the project. ENAMI estimates that a total of $3 billion will be required. Estimated previously Altoandinos' project capacity was initially estimated at 60,000 tons per year. However, new studies revealed that there were more resources available than anticipated, especially on the La Isla flat of salt. Mlynarz stated that ENAMI intends to begin the project with direct lithium extraction, a method that is yet to be tested in Chile and that Rio Tinto has been testing at its Rincon Project in Argentina. ENAMI is testing DLE solutions from various companies. Mlynarz says that early results for Rio Tinto’s technology are promising and pave the way for the potential use of this technology on the project. Mlynarz stated that the results with Rio Tinto were encouraging, and the operator was able to use its own technology. He said that the partnership needs approval from international regulatory bodies, but in the interim, ENAMI will continue exploration studies in the hopes that Rio Tinto takes the lead in 2026. Mlynarz stated that both ENAMI Rio Tinto understand the importance of timing.
-
Southern California Edison pays $82.5 Million for Bobcat Fire Damages
The Justice Department announced on Friday that Southern California Edison had agreed to pay the U.S. Government $82.5 million in order to cover costs for fighting the 2020 Bobcat Fire as well as repairing damages to the Angeles National Forest. According to the Justice Department, this is the largest settlement related to wildfires ever reached in California's Central District. SCE has not responded to comments immediately. The Bobcat Fire began in September 2020, and it burned over 114,000 acres (approximately 180 square miles), nearly 100,000 of which were in the Angeles National Forest. In September 2023, the U.S. filed suit on behalf of Forest Service against SCE & Utility Tree Service in order to recover the costs incurred by the Forest Service fighting the Bobcat Fire as well as the extensive damage it caused to Angeles National Forest. The federal government stated that the fire was caused by trees that were not properly maintained coming into contact with electricity lines. SCE agreed to the settlement agreement without admitting any fault. The amount must be paid within 60 days after the May 14 agreement. Jason Kuiken, acting Regional Forester for the Pacific Southwest Region of the U.S. Forest Service, said that these settlements were essential to restoring landscapes following wildfires. SCE announced last week that it had submitted to California's Office of Energy Infrastructure Safety a plan for wildfire mitigation over a period of three years.
-
Trump approves Nippon Steel’s bid to acquire US Steel and blesses the 'planned partnership.'
Donald Trump, the U.S. president, appeared to have given his approval on Friday to Nippon Steel’s $14.9 billion offer for U.S. Steel. He said that the "planned partnership between the two" would create jobs and benefit the American economy. Investors interpreted Trump's post on Truth Social as a sign that Nippon Steel had cleared the final major hurdle in its takeover of U.S. Steel. In a Truth Social post, Trump stated that the planned partnership between United States Steel (USS) and Nippon Steel would create at least 70.000 jobs and add 14 Billion Dollars in revenue to the U.S. economy. Trump stated that the majority of this investment will occur within the next 14-month period. He said he will hold a protest at U.S. Steel, in Pittsburgh on Friday. Two companies didn't immediately respond to requests for comments. The White House didn't immediately respond to questions regarding the announcement. This week, it was reported that Nippon Steel had said that if the merger were approved, they would invest up to $14 billion into U.S. Steel operations. That includes $4 billion for a new mill. (Reporting and editing by Jasper Ward, Steve Holland and Anna Driver.
-
US approves Utah Uranium Mine after Two-Week Environmental Review
Anfield Energy’s proposed Velvet Wood uranium mining project in Utah was approved by the Trump administration on Friday following a rapid environmental review of 14 days. This is part of a process designed to speed up permitting for energy and mining projects. These studies can take many years to complete due to the potential environmental impact of uranium mining. The Canadian project is the first to be approved under an emergency process Interior Department must permit energy installations on federal land. The new procedures were created in response to the national energy emergency declared by President Donald Trump on his first official day of office in January, in an attempt to increase domestic energy supplies, lower fuel prices, and strengthen national security. According to documents posted on the Interior Department website, Anfield filed their plan of operation for the mine on 1 April. In a press release, Interior Secretary Doug Burgum stated that "this approval marks a pivotal moment in the way we secure America's future mineral resources." By streamlining the review processes for important mineral projects such as Velvet-Wood we are reducing our dependence on foreign enemies and ensuring that our military, energy and medical sectors have the resources needed to thrive. Mineral security in action. Anfield wasn't immediately available to comment. The Velvet-Wood Mine Project in San Juan County produces uranium for both nuclear energy production and nuclear weapons, as well vanadium which can be used to strengthen steel or other alloys, or in batteries. The site is the former location of a mining operation. (Reporting and editing by Leslie Adler, Cynthia Osterman, and Nichola Groom)
-
Southern California Edison pays $82.5 million in settlement claims for 2020 Bobcat Fire damage
Southern California Edison, a division of Edison International, has agreed to pay $82.5 Million to the U.S. Forest Service to settle claims for damages and costs resulting from Bobcat Fire 2020. In 2023, the U.S. Government filed a lawsuit against SCE, alleging that negligence caused the wildfire. The fire burned almost 180 square miles (466,2 square kilometers), making it one of the biggest wildfires to ever occur in Los Angeles County. The government claimed in a complaint filed at the federal court of Los Angeles that the wildfire started on September 6, 2020 when a tree poorly maintained contacted powerlines, igniting the vegetation on a limb, which fell to the floor and spread the flames. Bill Essayli, United States Attorney, said: "This settlement is a record for Southern California Edison and provides taxpayers with a meaningful amount of compensation for the costs incurred in fighting the Bobcat Fire as well as for damage done to public lands." According to the U.S. Attorney's Office in Los Angeles, the company has agreed that it will pay the settlement within sixty days from the date the settlement agreement became effective, which is May 14. The company did not admit any wrongdoing. The utility did respond immediately to a comment request. (Reporting and editing by Mohammed Safi Shamsi in Bengaluru)
-
Canada's new Energy Minister vows to accelerate permitting and reset industry relations
In a speech Friday, Canada's new Natural Resources minister Tim Hodgson promised to speed up the approval process for major energy projects. The announcement was welcomed by oil and natural gas executives who wanted to see Ottawa rethink its regulatory approach towards energy development. Hodgson gave his first speech since joining the new Cabinet of Prime Minister Mark Carney in Calgary, Alberta. Carney, Canada's top exporter of energy, has promised to diversify markets for the sector amid a dispute over trade with Canada. The United States is Canada's No. 1 customer. Hodgson, speaking at an event organized by the Calgary Chamber of Commerce, said, "In the new economic system we are creating, Canada won't be defined anymore by delays, but by delivery." Hodgson, a former Goldman Sachs Banker elected to a Toronto riding in 2010, pledged to speak for Western Canada and improve the relationship between Ottawa and Canada's energy industry. He stated that he would work to identify projects of national importance and accelerate them in order to help the country become a superpower for conventional and clean energy. Canada is the fourth largest oil producer in the world. "No more 5-year reviews." Hodgson stated that decisions will be made in two years on all projects. Hodgson stated that responsibly produced Canadian oil can replace oil produced by authoritarian regimes. However, the country needs infrastructure to transport its energy to ports to export it to markets outside the U.S. Recently, the major Canadian oil pipelines faced regulatory delays and legal challenges that led to cancellations of some projects, and spiraling costs in others like the Trans Mountain Expansion. Hodgson’s finance background and the tone of his remarks, which were pro-development, encouraged many of Canada’s largest oil and gas companies. After the speech, John Whelan said, "The renewed spirit of collaboration is welcome and truly appreciated." Hodgson said that the Alberta government, the federal government and the industry leaders need to work together in order to develop a proposed project for oil sands CO2 capture and storage. Negotiations with the two levels of government are stalling. Six of Canada's biggest oil sands firms have proposed a C$16-billion carbon capture network in order to reduce emissions. Kendall Dilling is the president of the Pathways Alliance consortium, which is behind the proposed project. He said that he was optimistic about the project's progress under the new Canadian government. Dilling stated, "I think it's time."
-
Trump wants to speed up the process of obtaining new nuclear licenses and overhaul regulatory agencies
Donald Trump, the U.S. president, ordered on Friday that the independent nuclear regulatory agency of his country reduce regulations and expedite new licenses for power plants and reactors. He hoped to shorten a lengthy process to just 18 months. This requirement is part of an executive order signed by Trump last Friday to increase U.S. production of nuclear energy amid a surge in demand for data centers and artificial intelligent. The licensing process for nuclear reactors can sometimes take more than a decade in the U.S. This is a system designed to prioritise safety, but has also discouraged new projects. Michael Kratsios is the director of the White House Office of Science and Technology Policy. He said that President Trump's actions are a message to the world, letting them know that America will rebuild and that the American nuclear revolution can begin. A senior White House official revealed that the moves included a major overhaul of the Nuclear Regulatory Commission, which includes a look at the staffing levels and directing Energy and Defense departments work together to build nukes on federal lands. The administration envisages that the Department of Defense will play a major role in ordering and installing reactors on military bases. Senior White House officials said that the orders are also intended to revitalize uranium enrichment and production in the United States. Trump declared an energy emergency as his first act in office in January, stating that the U.S. lacked enough electricity to meet its growing needs, especially for data centers running artificial intelligence systems. Trump has focused his actions on fossil fuels such as coal, oil, and natural gas. However, administration officials are also in favor of nuclear energy, which is gaining bipartisan support. Despite environmentalists' concerns over radioactive waste, some Democrats support nuclear power because it does not emit greenhouse gases that are harmful to the planet. Republicans who are not as concerned with global warming support nuclear power because they believe it could improve the energy security of the United States. (Reporting by Jarrett Renshaw, Washington; Editing and proofreading by Nill Williams)
Asian stocks increase, dollar at two-year high as US rates, Trump in focus
Asian stocks rose on Friday, intending to shrug off a lacklustre start to 2025, while the dollar was perched at a twoyear high against a basket of currencies as financiers fret about U.S. rates remaining higher for longer.
MSCI's broadest index of Asia-Pacific shares outside Japan was 0.33% higher but on course for a nearly 1%. drop for the week. The index increased almost 8% in 2024. Japan. markets are closed for the week.
China stocks were steady on Friday after plunging on. Thursday highlighting growing stress over China's economy and. a possible looming trade war when Donald Trump begins his U.S. presidency this month.
China's blue-chip CSI 300 Index was 0.16 greater in. early trading after logging its weakest New Year start because. 2016 on Thursday. Hong Kong's Hang Seng Index increased 0.19%.
It's been a hard duration for equities around the turn of. the year, however weird things can take place in illiquid markets,. said Ben Bennett, Asia-Pacific financial investment strategist at Legal. and General Financial Investment Management.
I don't think we need to theorize this efficiency. That. said, a stronger dollar and greater bond yields will weigh on. sentiment moving forward and equity financiers will be hoping this. modifications soon.
On Wall Street, U.S. stocks closed broadly lower on Thursday. after initial gains failed to hold. Shares of Tesla. sank 6.1% after reporting its very first annual drop in deliveries,
The dim mood is available in the wake of a stuttering end to 2024,. denting a year-long rally sustained by growth expectations. surrounding artificial intelligence, prepared for rate cuts from. the Federal Reserve, and more just recently, the probability of. deregulation policies from the inbound Trump administration.
However with the Fed last month jolting the markets by. projecting less rate cuts than previously prepared for and. increasing concerns that Trump's policies may prove to be. inflationary, bond yields have risen, enhancing the dollar and. harming stocks.
Vasu Menon, managing director of financial investment technique at. OCBC, stated Trump's pro-growth and pro-business agenda might enhance. the US economy however for the remainder of the world, it may show. challenging due to possible tariffs and a more powerful dollar.
So, there is some degree of caution and anticipation in. markets specifically after the strong financial investment performance over. the previous two years, stated Menon.
Information overnight showed that the number of Americans filing. brand-new applications for welfare dropped to an. eight-month low of 211,000 recently, indicating low layoffs at. the end of 2024 and constant with a healthy labour market.
That bodes well for the U.S. economy, with payrolls and. inflation data later on this month likely to be the focus for. financiers as they gauge how measured the Fed's rate cut approach. is most likely to be.
Traders are pricing in 44 basis points of relieving this year,. below the 50 bps the U.S. central bank predicted in December.
That has left the dollar index, which measures the. U.S. currency versus six other systems, at 109.2, simply below the. 2 year high of 109.54 it discussed Thursday. The index rose. 7% in 2024 as traders changed their interest rate expectations.
The euro was on the other hand among the most significant losers. against an imposing dollar, having tumbled 0.86% in the previous. session to a more than two-year low of $1.022475. It was at. $ 1.0269 in Asian hours on Friday, headed for a 1.6% weekly. decline, its worst given that November.
The yen strengthened a bit to 157.295 per dollar,. but stood not too far from an over five-month low of 158.09 per. dollar hit in December. The yen fell more than 10% in 2015,. its 4th straight year of losses.
In commodities, oil costs inched greater due to optimism. over China's economy and fuel demand after a promise by President. Xi Jinping to promote growth.
Brent crude futures rose 0.16% to $76.05 a barrel,. while U.S. West Texas Intermediate crude rose 0.18% to. $ 73.25 a barrel.
Gold prices were constant at $2,658 per ounce, after a. 27% increase in 2024, its greatest yearly performance since 2010.
(source: Reuters)