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State AGs oppose legal shield for Carrier Global during bankruptcy of PFAS
Seven U.S. States on Monday objected against the bankruptcy plan of fire protection company Kidde-Fenwal, claiming that it improperly tries to shield its owner Carrier Global's from lawsuits relating to toxic PFAS chemical in its firefighting products. Carrier, not bankrupt itself, is trying to use Kidde-Fenwal bankruptcy to avoid its separate responsibility for suits over the "forever chemicals", in a manner that violates the U.S. Supreme Court's precedent. Carrier had previously agreed to pay Kidde-Fenwal $540 million and its creditors in a Chapter 11 plan to settle lawsuits brought by local governments, businesses and individuals who claimed that Kidde-Fenwal’s firefighting products contaminated soil and drinking water with PFAS around airports and military base bases throughout the U.S. According to two objections from the Democratic Attorneys General of New York and California, Connecticut, Delaware Maine, Vermont, Connecticut, Delaware and the District of Columbia, this deal cannot be used as a way to prevent states from suing Carrier directly for the alleged PFAS pollution. The plaintiffs cited a Supreme Court decision last year in the bankruptcy case of Purdue Pharma that severely curtailed a court's power to dismiss legal claims against entities who have not declared bankruptcy. Carrier didn't immediately respond to an inquiry for comment. Kidde-Fenwal declared bankruptcy in May 2023 after being named a defendant in over 4,400 PFAS suits over its chemical firefighting products. The first to file for bankruptcy as a result PFAS litigation was Kidde-Fenwal. However, experts believe that other companies may follow. Per- and polyfluoroalkyl chemicals, or PFAS for short, are a grouping of approximately 15,000 chemicals that have been used in hundreds consumer and commercial products, including firefighting sprays, nonstick pans and clothing, and cosmetics. Kidde-Fenwal’s bankruptcy plan doesn’t explicitly include the "non-debtor release" type of clause that was ruled unconstitutional by the Supreme Court in 2017. It characterizes PFAS liability instead as "estate claims," a type legal claim that Kidde-Fenwal may bring against its parent and that only Kidde-Fenwal bankruptcy estate is allowed to settle or litigate. The states argued Kidde-Fenwal’s plan uses "word games" in order to "obscure reality" about the settlement. This will prevent creditors from suing Carrier for PFAS contamination. The state said that Carrier is "vastly liable" for contamination which poses significant and persistent health risks to humans and the environment. New York, as an example, stated that Kidde-Fenwal chemicals contaminated soil and drinking water in approximately 35 places. According to the objection, the state has spent over $100 million on remediating the contamination. The ongoing costs are more than $3,000,000 per year. Carrier is a company that sells heating, cooling and refrigeration services. It has a $64.8 billion market capitalization. Kidde-Fenwal plans to divide Carrier's $540-million contribution, as well as future insurance recoveries, and other assets among PFAS creditor groups. Kidde-Fenwal proposes a bankruptcy plan that would give states 30% of settlement funds, local providers 30% and individuals with injury claims 22%. Smaller amounts would be reserved for firefighter's training, airports, businesses and landfills. Kidde-Fenwal intends to begin soliciting creditor votes for its Chapter 11 plan in June. Kidde-Fenwal sold its assets earlier to the private equity firm Pacific Avenue Capital Partners. In the U.S., water providers have reached settlements with large companies in their PFAS litigation. These include a $10.3-billion settlement with 3M, and a $1.1-9 billion settlement with DuPont Chemours Corteva. Kidde-Fenwal Inc., U.S. Bankruptcy Court District of Delaware No. 23-10638. 23-10638. Brian Glueckstein of Sullivan & Cromwell and Justin DeCamp from Sullivan & Cromwell are representing Kidde-Fenwal. David Molton, Brown Rudnick Click here to read more Carrier reaches $730 mln settlement over fire protection unit PFAS claims Kidde-Fenwal, a fire protection company, files for bankruptcy citing PFAS suits Are you the next defendant in the growing litigation over "forever chemicals"? EPA will roll back 'forever chemicals' rule and extend timelines. (Reporting from Dietrich Knauth, New York).
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The 'Choose France Summit' brings new investments of 20 billion Euros
The "Choose-France" business summit this year is expected to bring in 20 billion euros ($22.47billion) in new investments, said French President Emmanuel Macron. He announced projects in defence and energy, industry, as well as artificial intelligence. Macron's efforts to win over international business leaders by making the Choose France Summits at the Palace of Versailles an absolute must for the corporate elite have been credited with a change in investor perceptions of France, which was previously perceived as having a rigid, high-tax economy. Macron announced that in addition to the 20 billion euro in new investments, he also pledged 20 billion dollars in AI-focused projects at a Paris AI Summit in February. "You have delivered a lot in terms of investment in various fields, including AI, telco... green hydrogen and circular economy... This is a complete edition, where 20 billion was invested. And 20 billion in AI as a follow-up of the summit held in February," Macron said to CEOs and entrepreneurs at Versailles. The U.S. logistics company Prologis has pledged to invest 6.4 Billion Euros in four data centers in the Paris area. Meanwhile, London-based Fintech Revolut will invest 1 Billion Euros over the next 3 years to expand in France, and will also apply for a French bank licence. A similar announcement was made by the United Arab Emirates AI-focused MGX Fund. Other companies, including Amazon and Britain's Less Common Metals Limited were also expected to make an announcement in the rare earths sector. The Elysee announced that Portuguese company Tekever would build a drone manufacturing factory in the Southwest, a 100-million euro investment. Macron's government faces pressure to stop a wave job losses in the industry as trade policies of U.S. president Trump put further pressure on Europe’s faltering economy. Macron stated that "we must invest more in AI, green technology, defense, and security because we are racing to the finish line." According to EY’s European Investment Monitor (an annual survey of thousands business leaders), France has been Europe's top recipient of international investment for the last six years. Macron's advisors have used this as proof that his supply-side reforms are working. This year's edition shows that the number of projects in Europe has decreased for the second year running, while the United States saw a five-fold increase between 2023-2024. EY said this reflected the appeal the Inflation Reduction Act package of subsidy and Trump's business-friendly promises. Macron, despite the huge foreign investment into France, has not stopped French companies from investing abroad. Sanofi's plans to invest at least $20 billion in the United States to boost manufacturing angered French politicians.
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Argentina's soybean crop could suffer'significant losses" after storms
The Buenos Aires grain exchange warned on Monday that Argentina's soybean crop for 2024/25 could be affected by "significant losses" due to recent storms in the northwestern Buenos Aires Province. This may force the exchange to reduce its forecast. The exchange estimates the soybean crop to be a respectable 50 million metric tonnes, but stated in its report that heavy rains may further delay harvesting the grain which is already slow and could cause damage to plants. The exchange reported in a report on the storms' impact that 730,000 hectares (about 1.8 million acres) of soybeans are still unharvested in the province of Buenos Aires, located to the northwest. The exchange stated that "this region had already experienced the impact of rain in March," adding that due to this, threshing is 15 percentage points behind last year. "So, the new rain could cause significant losses." Argentina is the top exporter in the world of soybean oil, soybean meal and corn. In recent days, heavy rains have caused flooding across some Buenos Aires cities, with up to 400 millimeters falling on roads and fields. Locals evacuated from areas From their homes. The Buenos Aires grains exchange and the Rosario grains trade both predict that more rain will hit the affected area in the coming days. The Rosario exchange reported that "new rains will be expected next weekend, particularly on Saturday." The time taken to drain excess water can affect the extent of damage.
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Dollar downgraded as Treasury yields increase, dollar falls with focus on tax bill
The dollar eased, and the S&P 500 dipped on Monday as concerns over the U.S. government's debt and a tax cut bill grew following Moody's decision to downgrade the country's credit rating. Moody's Investors Service lowered the United States' sovereign rating to triple-A late on Friday night, underscoring the country's worsening fiscal outlook. A key congressional committee approved the massive tax-cutting bill of U.S. president Donald Trump on Sunday. Republicans in the U.S. House of Representatives, who currently control it, will push for the bill's passage this week. Investors are concerned that tax bills will cause debt to increase more than expected. The 30-year bond rate reached 5.037%, its highest level since November 2023. What Moody's has done is more symbolic than anything. Peter Cardillo is the chief market economist of Spartan Capital Securities, a New York-based brokerage. "Yes, the yields are rising on news reports, and they could spike even higher. "But they're moving up also for other reasons," he said. "In general, the (stock market) is not reacting that much to Moody's." It's more of a market that has risen and is trying to consolidate recent moves. Moody's downgrade follows similar actions by Fitch and Standard & Poor's, both in 2011. U.S. Treasury secretary Scott Bessent gave television interviews Sunday in which he dismissed the downgrade and warned trade partners that they would be charged maximum tariffs for not offering deals "in good faith". Bessent will attend a Group of Seven Meeting this week to continue the discussion. The Dow Jones Industrial Average increased 50.72 points or 0.12% to 42,705.46, while the S&P 500 dropped 10.08 points or 0.17% to 5,948.43, and the Nasdaq Composite fell 54.18 points or 0.28% to 19,157.69. On Friday, the S&P 500 posted its fifth consecutive day of gains. MSCI's global stock index rose by 0.13 points or 0.01% to 880.75. The pan-European STOXX 600 rose 0.13% while Europe's FTSEurofirst 300 rose 2.80 points or 0.13%. The MSCI broadest Asia-Pacific index outside Japan fell by 0.5%. Mixed data from China showed an economy in trouble. Trump's tariff war is affecting consumer sentiment. Analysts will be looking at Home Depot and Target earnings this week to get an update on trends in spending. Home Depot will report Tuesday morning before the opening bell. Trump said that Walmart would be forced to raise prices because of the levies if it didn't "eat the tariffs". The dollar fell in value, reaching a low of more than a week against the yen and other safe haven currencies, such as the Swiss franc, euro, and Swiss franc. The dollar fell 0.49% against the Japanese yen to 144.91. U.S. Rates Not Falling So Fast Raphael Bostic, president of the Atlanta Federal Reserve, told CNBC Monday that the central bank might only be able reduce interest rates by one quarter point for the remainder of the year due to concerns over rising inflation caused by increased import taxes. In an interview that was published on the weekend, Christine Lagarde, President of the European Central Bank said the recent decline in the dollar reflected a lack of confidence in U.S. policy. Spot gold increased by 0.98%, to $3.233.92 per ounce.
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A bipartisan group of US legislators introduces a bill to boost nuclear energy
On Monday, U.S. Senators from both major political parties introduced a measure to counterbalance China's and Russia's increasing influence over international nuclear energy development. Why it's important The United States is the country with the most nuclear power, but China has been developing its own reactors rapidly and Russia has made deals with countries throughout Southeast Asia. The Trump administration has been debating draft executive orders that would give it more control over the approvals for nuclear reactor projects, which are currently managed by an independent agency. The orders are not certain to reach Trump's desk but they do seek to assess the recycling of nuclear waste, which is opposed by experts on proliferation. BILL'S SPONSORS The two parties are in agreement on the need for nuclear energy, despite predictions that demand for electricity will continue to rise due to artificial intelligence data centres. The legislation is sponsored by Republican Senators Jim Risch, Mike Lee and Martin Heinrich along with Democrats Chris Coons and Martin Heinrich. Nuclear energy is almost carbon-free, and it provides well-paying jobs. The development of reactors is plagued by delays, high costs and radioactive waste. What the Bill Does The International Nuclear Energy Act will support a new office that would boost nuclear exports and finance, harmonize regulations, standardize licensing, and promote the harmonization. The act would set up a fund to finance projects that are important to national security. A biennial cabinet summit would be required to discuss safety, security, and the relationship between government and industry. KEY QUOTES Risch stated in a press release that if the U.S. does not lead the nuclear energy development, Russia or China will. He added that nuclear power gives the U.S. the "tools" it needs to compete against these authoritarian aggressors. Lee stated that "achieving American energy supremacy will require us... to streamline our nuclear trade, foster our relationship abroad, and bring our full industry weight to bear to out-compete our geopolitical rivals," he said. (Reporting and editing by Richard Chang; Timothy Gardner)
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Codelco, a Chilean lithium producer, has partnered with Rio Tinto to form a new major lithium partnership
Codelco, a Chilean state-owned miner, announced on Monday that it will be partnering with Rio Tinto, the global mining giant, for its new Maricunga Lithium project. This partnership brings a new major player to the lithium sector, which is the second largest producer in the world of this EV battery metal. After a selection procedure, Rio Tinto is now the third largest private company in Chile's Lithium sector. It joins Chile's SQM, and U.S.-based Albemarle who have been dominating production for years. Codelco, which holds a 49.99% stake in the project, said that Rio Tinto would contribute up to $900m to it. Codelco will be in charge of the rest, as it is the state miner that has been tasked to spearhead the recent push by the Chilean government into this sector. The funding will include $350m when the deal is closed, $500m when a decision on the final investment is made and $50m if commercial production can be achieved by the end 2030. Codelco announced that the board of the partnership would consist of two members nominated by Rio Tinto and three by Codelco. Daina Beth Solon is reporting.
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Brazil reforestation company re.green receives fresh funding in deal with BNDES and Bradesco
The Brazilian reforestation start-up re.green said it had received 80 million reais (about $14.13 million) from the state development bank BNDES. Bradesco was also a financial intermediary in this deal. The deal is similar in nature to the 160 million reals deal announced last month by Mombak, which was the first reforestation program backed by Brazil’s 10 billion reals "New Climate Fund", unveiled by 2023 for financing climate-related projects. As Brazil's new carbon market gains momentum, private investors and lenders like Bradesco and Santander are interested. Bradesco acted as Mombak's intermediary. Many investors still view restoration as a risky business, and some startups are having difficulty getting financing to finance their operations or reduce capital costs. Thiago Piccolo, re.green's Chief Executive, said in an Interview: "Our mantra is to de-risk. This is how, over time we will reduce uncertainty and increase confidence on our market." In our case, Bradesco is also involved for the first-time in the disbursement. It is a series steps to reduce uncertainty, boost confidence and facilitate fundraising. Re.green partners with farmers or ranchers to buy degraded land and replant native plants in the Amazon Rainforest and Brazil's Atlantic Coast rainforest. The company generates "carbon credits" by converting degraded land to forests that can be purchased to offset greenhouse gas emissions. The startup, which has a deal to restore forests with Microsoft, is backed both by Brazilian billionaire Joao Salles as well as asset managers like Dynamo and Gavea founded by former Brazilian Central Bank Governor Arminio Fraga. Aloizio Mercadante, the head of the state development banks, said that the BNDES financing was "a powerful tool for enabling investments in the rehabilitation of degraded regions in the country". He added, "This confirms the power of the fund provided by President Luiz inacio Lula to BNDES for them to fight against the effects of climate changes in our country." The program of the bank is part of Brazil’s 2015 commitment of restoring 12,000,000 hectares (29,7,000,000 acres) of native forests by 2030. Lula reiterated this commitment last year.
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Andy Home: Bearish funds turn away from volatile copper and towards aluminium
Fund managers have been hit hard by the price volatility that has resulted from U.S. tariffs on imports of copper. Since February when U.S. president Donald Trump ordered a probe into copper imports, the copper market has been dominated by the premium that the CME U.S. price commands over the London Metal Exchange (LME)'s international price. The trade has been volatile and the price gap between the US and Europe has undermined the traditional investment role of Doctor Copper as a proxy to the state in global manufacturing. Many fund managers simply gave up. Investor positioning and open interest in the CME Copper contract has dropped dramatically over the past couple of months. Others have turned to aluminium in order to express their negative views of the global trade situation. HEADLINE TURBULENCE Money managers were evenly divided between long and shorter bets when they began the year. Fund positioning on CME copper contracts amounted 134,000 contracts. According to the latest Commitments of Traders Report, the total participation has decreased to 82,000 contracts. Investors are now net long at 24,780 contracts. Trading on the CME copper contract dropped 35% year-over-year in the period January-April, while the market open interest reached a new low of one year at the end last month. It's not surprising that copper is still in the news, given the fact that the investigation under Section 232 into U.S. Imports has been ongoing for a long time. The constant stream of headlines about the copper tariff as well as the wider tariff standoff with China have turned the trading of metals into a wild ride. This is especially true for the CME contract. Many investors have reduced exposure to risk, either voluntarily or involuntarily. Funds that expected copper prices to drop due to trade tariffs impacting global growth were particularly hard-hit. Money manager short positions are at their lowest level since November 2022. Bulls are also not raging. Since the middle of April, the collective investment's long position has flattened. ALUMINIUM UNDER THE HAMMER No indications exist that money from the CME is now on the London copper markets. Fund positioning for LME copper has also been reduced due to a decline in both bullish and bearish bets. Money managers who want to convey a negative macro-picture have instead focused their attention on aluminium. The CME aluminium contract does not reflect the LME international product but is instead a U.S.-cleared customs price. The CME's U.S. Midwest Physical Premium Contract is the only place where the trade in tariffs can be done. This has prompted funds to increase their short positions in LME aluminum to the highest level since July last year. Investors have also slashed their bets for higher aluminium prices. This has resulted in a net fund position that is now neutral, having been super-bullish just a few months ago. Divergent Fortunes Recent price differences between copper and aluminium can be explained by the rotation of funds from copper to aluminum. LME's three-month copper is now back to its previous $9,500/metric ton price after a 17% increase from the lows of April 7. LME aluminium, on the other hand, has recovered a modest 6% from April's sell-off. The price of three-month metal has fallen by 4% since the beginning of the year, and is now trading at around $2450. It is the second weakest performer in the LME base metals, after zinc. Bears may still have a rough time with aluminium. LME warehouse inventories are steadily decreasing, time-spreads were contracted in the last month and the benchmark cash to three-months period flirted with a backwardation. However, fund managers still feel that it's a lot safer than trying to ride a copper roller coaster. These are the opinions of a columnist who writes for.
Treasury yields are rising, stocks and the dollar are down, with focus on the tax bill and US downgrade
The yields on longer-dated Treasury bonds rose, while the global stock indexes fell and the dollar weakened Monday. This was due to concerns over a U.S. federal tax bill, the U.S. government's debt and Moody's decision to downgrade the U.S. sovereign rating.
Moody's Investors Service lowered the United States' sovereign rating to "Aaa" late on Friday night, bringing attention to the country's worsening fiscal outlook.
A key congressional committee approved the massive tax-cut legislation of U.S. president Donald Trump on Sunday. Republicans in the U.S. House of Representatives, who currently control it, will push for the bill's passage this week.
Investors are concerned that tax bills will cause debt to increase more than expected. The 30-year bond rate was up 9.4 basis point at 4.992%, after reaching 5.037%. This is the highest level since November 2023.
What Moody's has done is more symbolic than anything. Peter Cardillo is the chief market economist of Spartan Capital Securities, a New York-based brokerage.
"Yes, the yields are rising on news reports, and they could spike even higher. "But they're moving up also for other reasons," he said. "In general, the (stock market) is not reacting that much to Moody's." It's more of a market that has risen and is trying to consolidate recent moves.
Scott Bessent, U.S. Treasury secretary, used Sunday's television interviews to dismiss Moody's downgrade while warning that trade partners would receive maximum tariffs if not they offered deals "in good faith".
Bessent will attend a G7 summit this week to continue discussions.
The Dow Jones Industrial Average dropped 59.42, or 0.15% to 42,592.31. The S&P 500 declined 24.46, or 0.41% to 5,933.92 and the Nasdaq Composite lost 119.50, or 0.62% to 19,091.89.
On Friday, the S&P 500 posted its fifth consecutive day of gains.
The MSCI index of global stocks fell by 1.73 points or 0.20% to 878.89. The pan-European STOXX 600 fell by 0.17% while Europe's FTSEurofirst 300 fell by 3.99 points or 0.18%
The MSCI broadest Asia-Pacific index outside Japan fell by 0.5%.
The Chinese economy is struggling, according to a mixed bag of data.
Trump's tariffs war has weakened consumer confidence. Analysts will be reviewing Home Depot and Target earnings this week to get an update on trends in spending.
Trump said that Walmart would be forced to raise prices because of the levies if it didn't "eat the tariffs".
The U.S. Dollar weakened widely, reaching a low of more than a week against the safe haven currencies, including the Swiss Franc, yen and euro. The dollar fell 0.38% against the Japanese yen to 145.06.
U.S. Rates Not Falling So Fast
Raphael Bostic, president of the Atlanta Federal Reserve, told CNBC that the central bank might only be able reduce interest rates by one quarter point for the remainder of the year due to concerns over rising inflation caused by increased import taxes.
In an interview that was published on the weekend, Christine Lagarde, President of the European Central Bank said that the recent decline in the dollar reflected a lack of confidence in U.S. policy.
Brent crude reached $65.45 a barrel, an increase of 0.06% for the day. U.S. Crude rose by 0.24%, to $62.64 per barrel.
Spot gold increased 1% to $3.234.34 per ounce. U.S. Gold Futures increased 1.54% to $3.231.10 per ounce.
(source: Reuters)