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Official: US panel split over Nippon Steel bid but sees path forward
The White House said that a national security panel had divided opinions on its recommendation to Donald Trump regarding Nippon Steel’s bid for U.S. Steel. However, most members of the panel believe any security concerns posed by this deal can be addressed. According to an executive order Trump signed last month, the Committee on Foreign Investment in the U.S. on Tuesday submitted a report to Trump regarding the national security implications of the proposed merger. The document was submitted by Nippon Steel after it increased its investment pledge in U.S. Steel from $14 billion to $14 trillion in a desperate bid to get approval. The White House official stated in a press release that "we've received the reports and the President will examine the recommendations of each agencies to determine if further action is needed on this issue." The CFIUS agencies did not agree on their recommendations, but the majority believed that any risks could be mitigated through mitigation, the person said, declining to give his name because the matter wasn't public. Nippon Steel refused to comment. U.S. Steel didn't immediately respond to an inquiry for comment. The recommendation is in line with the executive order that was signed by Trump last week, and which instructed CFIUS to determine whether the measures proposed by companies would mitigate the national security threats previously identified by CFIUS. In the April directive, it was also requested that a statement be made describing each agency's position as a CFIUS member as well as its reasons. Trump has 15 days from now to decide on the fate of this transaction. However, the timeline may slip. In January, after a CFIUS review of the previous deal, Joe Biden, then President of the United States blocked it on grounds related to national security. Companies sued each other, claiming that they had not received a fair evaluation process. The Biden White House rejected this view. This week, it was reported that Nippon Steel had said if the merger were approved, they would invest up to $14 billion in U.S. Steel operations. That includes $4 billion for a new mill. (Reporting and editing by Leslie Adler, David Gregorio, Alexandra Alper)
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Official: US panel split over Nippon Steel bid but sees path forward
The recommendation of a national security panel to President Donald Trump regarding the bid by Japan's Nippon Steel for U.S. Steel was divided, but the majority of panel members believed that any security risks presented by the deal could be addressed, according to a White House spokesperson. According to an executive order Trump signed last month, the Committee on Foreign Investment in the U.S. on Tuesday submitted a report to Trump regarding the national security implications of the proposed merger. The document was submitted by Nippon Steel after it increased its investment pledge in U.S. Steel from $14 billion to $14.75 billion as a last ditch effort to win approval. The White House official stated in a press release that "we've received the reports and the President will examine the recommendations of each agencies to determine if further action is needed on this issue." The CFIUS agencies did not agree on their recommendations, but most believed that any risks could be mitigated through mitigation, the person said, declining to give his name because the matter wasn't public. Nippon Steel refused to comment. U.S. Steel didn't immediately respond to an inquiry for comment. (Reporting and editing by Leslie Adler, David Gregorio and Alexandra Alper)
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Sources say Phillips 66 will begin laying off workers at its Los Angeles refinery in December.
Phillips 66 is expected to lay off most workers at its 139,000-barrel-per-day Los Angeles-area refinery in December, sources familiar with the matter said on Thursday. The company announced that it would shut down the facility in October and start winding down its operations in October 2025. Two months later, the company will start reducing its workforce. About 600 employees work at the Los Angeles facility, along with 300 contractors. The United Steelworkers Union represents over half of the hourly employees. Sources said that a few of the retained employees will be transferred to Phillips 66 Los Angeles Marine Oil Terminal. Phillips 66, a Phillips 66 spokeswoman said: "Since it was announced that these facilities would be idled, Phillips 66 is committed to helping its employees and contractors make this transition." The spokesperson refused to comment on the plans following the closure of Los Angeles' refinery. Valero Energy announced in 2013 that it would close its Benicia refinery (145,000 bpd), one of the two refineries remaining in the state. Two refineries in the state produce about 20% of the gasoline that is sold.
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Trump will sign an order to boost nuclear energy as early as Friday, according to sources
Four sources said that U.S. president Donald Trump would sign executive orders on Friday to help jumpstart the nuclear industry. These orders will ease the approval process for new reactors, and strengthen the fuel supply chain. Trump, on his first official day in office, declared an emergency energy situation due to the rise in demand for power that has been seen in the last two decades. Chris Wright, energy secretary, said that the race to develop the power sources and data centres needed for AI was "Manhattan Project 2", in reference to the massive U.S. project during World War II, to develop atomic weapons. According to a draft summary, Trump will use the Cold War Defense Production Act in order to declare a state of emergency due to the U.S.'s dependence on Russia and China regarding enriched uranium and nuclear fuel processing. The summary directs agencies to allow and site new nuclear installations and directs Departments of Energy and Defense (DoD) to identify federal lands and sites for nuclear deployment and streamline processes to get these built. The Energy Department is also encouraged to use direct loans and loan guarantees to expand the reactor build-out. In his first term, Trump used the Loan Programs Office to support a nuclear power plant in Georgia. The LPO now has hundreds billions in funding thanks to legislation passed by former president Joe Biden's Administration, but has been hard hit by job cuts under Trump's second presidency. The White House didn't immediately respond to our request for comment. It is not uncommon for the exact wording and text of executive orders to be changed. There is also no guarantee that certain elements will remain intact or unchanged during the final stages. China is the country that has grown the fastest when it comes to nuclear energy. The United States, which was the first nation to develop nuclear power, also has the largest nuclear power capacity. According to one source, officials from the nuclear energy institute and Constellation, the utility with the largest U.S. capacity of reactors, were invited Friday afternoon to a signing ceremony. Constellation and NEI didn't immediately respond to comments. The Trump administration is debating draft executive orders that would boost nuclear energy. These proposed measures included giving the administration greater power to approve reactors, and reforming the Nuclear Regulatory Commission (NRC), a five-person panel that approves reactors. The Democrats like nuclear power because it emits virtually no carbon dioxide. Republicans prefer it because of its reliability compared to solar and wind energy, which are intermittent. This problem can be solved with battery storage. The United States has no permanent disposal facility for radioactive waste produced by nuclear power. (Reporting and editing by Alistair Bell; Timothy Gardner)
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Trump will sign an order to boost nuclear energy as early as Friday, according to sources
Four sources said that U.S. president Donald Trump would sign executive orders on Friday to help jumpstart the nuclear industry. These executive orders will ease the approval process for new reactors, and strengthen the fuel supply chain. Trump, on his first official day in office, declared an emergency energy situation due to the rise in demand for power that has been seen in the last two decades. Chris Wright, energy secretary, said that the race to develop the power sources and data centres needed for AI was "Manhattan Project 2", in reference to the massive U.S. project during World War II, to develop atomic weapons. According to a draft summary, Trump will use the Cold War Defense Production Act in order to declare a state of emergency due to the U.S.'s dependence on Russia and China regarding enriched uranium and nuclear fuel processing. The summary directs agencies to allow and site new nuclear installations and directs Departments of Energy and Defense (DoD) to identify federal lands and sites for nuclear deployment and streamline processes to get these built. The Energy Department is also encouraged to use direct loans and loan guarantees to expand the reactor build-out. In his first term, Trump used the Loan Programs Office to support a nuclear power plant in Georgia. The LPO now has hundreds billions in funding thanks to legislation passed by former president Joe Biden's Administration, but has been hard hit by job cuts under Trump's second presidency. The White House didn't immediately respond to our request for comment. It is not uncommon for the exact wording and text of executive orders to be changed. There is also no guarantee that certain elements will remain intact or unchanged during the final stages. China is the country that has grown the fastest when it comes to nuclear energy. The United States, which was the first nation to develop nuclear power, also has the largest nuclear power capacity. According to one source, officials from the nuclear energy institute and Constellation, the utility with the largest U.S. capacity of reactors, were invited Friday afternoon to a signing ceremony. Constellation and NEI didn't immediately respond to comments. The Trump administration is debating draft executive orders that would boost nuclear energy. These proposed measures included giving the administration greater power to approve reactors, and reforming the Nuclear Regulatory Commission (NRC), a five-person panel that approves reactors. The Democrats like nuclear power because it emits virtually no carbon dioxide. Republicans prefer it because of its reliability compared to solar and wind energy, which are intermittent. This problem can be solved with battery storage. The United States has no permanent disposal facility for radioactive waste produced by nuclear power. (Reporting and editing by Alistair Bell; Timothy Gardner)
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Rio Tinto to build second lithium project in Chile
Rio Tinto, the global miner, has been chosen by Chilean authorities for a second time in this week to be a partner on a new lithium project. The state-run mining company ENAMI announced its partnership with Altoandinos Lithium Project Thursday. ENAMI reported that Rio Tinto would initially invest $425 million in the project. This will total an investment of $3 Billion. ENAMI holds an initial stake of 49 % and two board positions, while Rio will have three board members. ENAMI stated that Rio's investment in Altoandinos will cover a feasibility study, the use of a pilot plant on its Rincon project, as well as its direct lithium extraction technologies. ENAMI stated in a press release that "Rio Tinto offers a financing solution which ensures the resources necessary for the project up until commercial operation." Rio Tinto stated in a separate press release that it would "advance towards binding agreements as soon as possible", and that feasibility studies will enable a final decision on investment. ENAMI also considered French mining company Eramet, Chinese automaker BYD and Korean Steel Group Posco as potential developers. Ivan Mlynarz, ENAMI's head, said: "After an in-depth analysis we found that Rio Tinto offered the best value to ENAMI." Rio was selected on Monday by the state-run copper mining company Codelco for its Maricunga Lithium project. (Reporting and editing by Kyra Madry; Daina Beth Solon)
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Enel's Italian shareholders have approved up to 3.5 billion euros in investor rewards
Enel, Italy's largest utility, approved on Thursday a plan for a share buyback and the option to cancel shares acquired without reducing capital. This allows Enel to reward its investors more. The board was given the authority to buy back up to 500,000,000 shares at a maximum cost of 3.5 billion Euros ($3.95 billion). Enel’s board will now decide when and how much to spend on the first tranche. Financial analysts say the utility controlled by the government could spend up to 1 billion euros on the first tranche of buybacks, in an effort to increase the value. Share buyback programs were introduced by European oil and gas companies, including Shell TotalEnergies, and Eni of Italy in order to attract investors. Endesa's Spanish subsidiary, announced recently a share buyback program worth up to two billion euros by 2027. A 500 million euro tranche of the programme was launched at the beginning of April.
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White House focuses on food, chemicals and overtreatment in report about childhood diseases
On Thursday, a commission headed by U.S. Secretary of Health Robert F. Kennedy Jr. released a report in which it stated that processed foods, chemicals, stress, and the overprescription and vaccinations and medications may be contributing factors to chronic illnesses among American children. Kennedy said that the report of the commission was "a call to action to act urgently to stop this crisis". This crisis is characterized by an increase in childhood obesity, diabetes and cancer rates, as well as mental disorders, allergies, and neurodevelopmental disorders such autism. It did not recommend specific regulations or restrictions for pesticides in agriculture, as some farming groups had feared. However, it did draw attention to studies that linked health disorders in animals and humans with the weedkillers glyphosate, and atrazine. The report said that the chemicals needed to be researched further. Bayer, the company involved in thousands lawsuits involving its herbicide Roundup containing glyphosate, has said that some of the details in this report are not "fact-based". Bayer stated that "we believe a fact-driven and data driven approach, with robust science following international gold standards, is necessary to support this important initiative." The report reiterated Kennedy's previous statements that highly-processed foods and additives pose health risks, and that the food and beverage industry has too much influence in forming public health recommendations such as the Dietary Guidelines. At a press event, he stated that there was consensus on the need to prioritise what he termed as the crisis of ultra-processed foods. The American Soybean Association criticized the report for being "drafted completely behind closed doors", and incorrectly suggesting that pesticides or soy oil contribute to negative health outcomes. We're discouraging the consumption of heart-healthy oil and forcing people to use fats which will make them unhealthy and cost more. "This is exactly the opposite of what government should do," said Alan Meadows, ASA Director and soybean farmer. The report also criticizes the U.S. childhood vaccine schedule, stating that the number of vaccinations recommended for American children is higher than many European countries. It stated that the effects of vaccine injuries and the link between vaccines, chronic diseases should be investigated. Kennedy, a vaccine skeptic for years, has pushed theories that are contrary to science about vaccine safety. FARM LOBBY SUBSTANCE PRESSURE The policy prescriptions are due in August after the report on Thursday. In February, President Donald Trump issued an executive order establishing the Make America Healthy Again Commission. The commission will investigate chronic illnesses and develop an action plan for combating childhood diseases. The U.S. Department of Health and Human Services and White House jointly manage the commission, with Kennedy as its chairman and the chief of the Domestic Policy Council as its executive director. It includes Agriculture Secretary Brooke Rollins, other cabinet members and federal health agency heads as well as senior White House officials. Farm lobby groups warned before the report was published that criticizing certain farm practices would impede collaboration with the health agenda of the administration and could put food production in danger. A source with knowledge of the issue said that the lobby groups were very insistent on the administration not to mention pesticides. Environmental Protection Agency (EPA) head Lee Zeldin told reporters on a conference call that farmers were key partners in the MAHA agenda, and that any change to pesticide regulations should be carefully considered. He said that "American farmers depend on these products and any further regulation or restrictions of crop protection tools must take into consideration the costs and benefits of adequate protection and alternatives," as well as risk-based scientific processes. Kennedy worked with attorneys from Wisner Baum to win a $289m verdict in 2018 for a Californian man diagnosed with non-Hodgkin lymphoma because he used Roundup regularly as part of his job. The verdict was reduced later to $20.5million. Kennedy also claimed that he had been involved in at least two cases against Roundup maker Monsanto which was acquired Bayer. The report recommended that as a next step, there be a greater focus on drug safety and research and improved surveillance of drugs and their effects on childhood health. It also called for clinical studies to compare the whole-food and processed-food diets among children. The report says that ultra-processed foods, which it describes as industrially-manufactured food products, are associated with poor health. The report cites infant food as an ultraprocessed product that is worrying, saying that more parents are buying European brands. MAHA activists are concerned about certain oils used in infant formula. However, these ingredients provide important fats.
Treasury yields decline, US stocks rise; investors evaluate US tax bill
The 30-year U.S. bond yields rose to their highest level in nearly a year before they eased on Thursday. Worries about the U.S. budget outlook and demand for debt remained, but stocks on Wall Street, including tech-related stocks, rose.
After recent losses, the U.S. Dollar has strengthened.
The yields increased earlier after the U.S. House of Representatives passed the tax bill of President Donald Trump by a single solitary vote late Thursday, adding to concerns about the debt load of the country.
The bill would provide new tax breaks for car loans and tips, and increase spending on border security and military. The Congressional Budget Office (CBO) estimates that Trump's tax cut bill will add $3.8 billion to the $36.2 trillion of U.S. national debt in the next decade.
Moody's was the last major credit rating agency to remove the U.S. from its triple-A status late last week.
Some buyers were attracted by the recent drop in bond prices, which moves inversely with yields. Last week, the 30-year bond yield dropped 3.7 basis points to 5.0521%.
Weak demand for the sale of $20 billion in 20-year bonds Wednesday heightened concerns over reduced interest rates on U.S. government debt.
The benchmark 10-year and 30-year yields both rose by about 50 basis points in the last month.
Ed Al-Hussainy is a senior rates analyst with Columbia Threadneedle Investments. He said that the Treasury market was looking for a "circuit breaker". This can be in the form poor labor market statistics to trigger (Federal Reserve's) cuts and trigger an assessment of the strength the economy.
U.S. stock prices rose on Thursday, after dropping in the previous session.
Jake Dollarhide is the chief executive officer of Longbow Asset Management, located in Tulsa.
The market is a safe haven for technology at this time.
The Dow Jones Industrial Average rose by 177.19, or 0.4%, to 42.037.60. The S&P 500 gained 28.89, or 0.4%, to 5.873.50. And the Nasdaq Composite gained 176.57, or 1.94 percent, to 19,049.21.
Alphabet shares rose 2.3% while the sector of communication services rose 1%.
The MSCI index of global stocks rose by 0.09 points or 0.01% to 874.00. The pan-European STOXX 600 fell by 0.64%.
Figures showed that the British government borrowed more in April than was expected, and euro zone businesses unexpectedly returned to contraction.
After the data, the euro fell while the U.S. Dollar rose after three consecutive days of losses. The euro last fell 0.41% to $1.1283. The dollar gained 0.29% against the Japanese yen to reach 144.08.
Bitcoin, on the other hand, reached a new high partly because investors were looking for alternatives to U.S.-based assets. Bitcoin's last gain was 3.25%, at $111 795 51.
The oil price was affected by a report that OPEC+ has discussed a production boost for July.
Brent futures dropped 47 cents or 0.72% to settle at $64.44 per barrel. U.S. West Texas Intermediate Crude eased 37 cents or 0.6% to settle at $60.20.
(source: Reuters)