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Officials at the White House say that Trump will be spending $700,000,000 on new coal subsidies.
According to a White House spokesperson, U.S. president Donald Trump plans to use Cold War national defense powers in order to send $700 million towards coal plants. The official said that Trump could announce on Thursday he would invoke the Defense Production Act of 1950, which grants presidents broad?authority to national security-related industries. He will upgrade more than 12 coal power plants and build a massive West Coast Coal Export Terminal, as well as match corporate funds for the construction of new power plants. The person who spoke under condition of anonymity did not want to "preempt" the President's announcement and cautioned the details might still change. The Trump administration has framed energy issues in existential terms as it eyes the domestic need to sustain power-hungry artificial-intelligence data centers and aims to marginalize foreign adversaries that hold large fossil fuel reserves. The U.S. has seen a steady decline in coal usage. According to the U.S. energy?information administration, coal once accounted more than half of U.S. electric generation. However, it has fallen to less than one-fifth over recent years. The power?producers are relying more on renewable energy and natural gas, as they're concerned about the effect of fossil fuels on global warming and their dependence on fragile supply chains. More than half of the $700m will be used to upgrade 13 coal plants, while $185m will be used to'match corporate funds' for coal facilities in Alaska, Maryland, and West Virginia. $75m will go towards the proposed West Gateway export terminal, which has been planned since the early 1990s. Bloomberg was the first to report on the coal support plan. (Reporting and editing by Jacqueline Wong, Jarrett Renshaw, Jacob Bogage)
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Stocks fall on escalation of hostilities
Investors were unsure as Asian stocks began trading Thursday. The stock market fell as renewed fighting between the U.S. MSCI's broadest Asia-Pacific share index outside Japan fell 0.8% while S&P 500 e-minis futures dropped 0.4%. After a short holiday, Korean shares reopened with a 2% decline. Japan's Nikkei 225 also fell 1.3%. Analysts from Westpac stated in a report that "financial markets have shifted back to a risk-off state as the U.S. retaliated against Iran again." The S&P 500 fell 0.7% overnight and oil prices rose around 2%. Hostilities in the Middle East erupted again and the talks between Washington and Tehran showed little progress. The ISM Services Sector PMI Print was better than expected in the U.S. in May, as businesses placed preemptive orders and built up inventories to prepare for shortages and increased prices due to war. Brent crude futures fell 0.7% to $97.12 per barrel when trading resumed on Thursday. Lebanon and Israel had agreed on a ceasefire that is conditional on the complete cessation in fire by the Iran-aligned Hezbollah and the evacuation of all its operatives out of the South Litani Sector. Both sides agreed to a ceasefire last month, but hostilities continued. The Republican-led U.S. House of Representatives passed a war power resolution on Wednesday, to prevent President Donald Trump from continuing his conflict against Iran. The measure is mostly symbolic, as it still needs to pass the Senate. It would also need two-thirds of both chambers in order to override a veto almost guaranteed by President Donald Trump. In a recent research report, analysts at ING stated that "Geopolitics continues to drive volatility as conflicting signals dampen hope for a quick resolution to the conflict." Broadcom shares fell more than 13% after the company missed Wall Street's expectations for revenue in the second quarter on Wednesday. Its top executive also left his previous forecast of 2027 sales?unchanged. This is a rare indication that AI chipmaker Broadcom may be losing its steam. The yen is down 0.1% on the currency market at 159.945 per dollar. This was after Bank of Japan Governor Kazuo ueda stated that the central bank should discuss pros and cons of increasing?interest rates, if inflationary risk outweighs downside risks for the economy. These remarks indicate a high probability of a rate increase this month. After a three-day rally that?took currency to its highest level since April 7, the U.S. Dollar Index, which measures greenback strength against a basket six currencies, remained?steady' at 99.45. The yield on U.S. Treasury bonds 10-years was down by 0.4 basis points at 4.485%. Gold rose by 0.5% to $4455.71, remaining firmly in the same trading channel that it has been in since mid-last month. Bitcoin dropped 1.3% to $64,047.39 while ether rose by 1.8% to $1.810.83. (Reporting and editing by Shri Navaratnam.)
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Oil drops as Lebanon and Israel implement ceasefire
The oil prices fell 'on Thursday' as the Israel-Lebanon ceasefire agreement boosted expectations for a wider deal to end the U.S./Israeli war against 'Iran'. Meanwhile, U.S. House of Representatives passed a resolution to limit President Donald Trump's military powers. Brent futures fell 67 cents or 0.69% to $97.14 a barge by 0015 GMT. U.S. West Texas intermediate CLc1 crude dropped 62 cents or?0.65% to $95.4. After renewed Middle East hostilities, including Iranian attacks against Kuwait and U.S. military strikes near the Strait of Hormuz, both benchmarks gained about 2%. The Republican-led House in the U.S. approved a Resolution on Wednesday to prevent Trump from continuing his war against Iran. To take effect, the resolution would require Senate approval and a two-thirds majority in both chambers. Trump said on Wednesday that progress could be made in the negotiations with Iran by this weekend. Abbas Araqchi, the Iranian Foreign Minister, said on Wednesday that Tehran's contact with Washington has not been cut, but there have been no advances in the negotiations. Both sides are studying the texts they exchanged. The Energy Information Administration reported on Wednesday that U.S. crude stockpiles dropped by 8 million barrels, to 433.7 millions barrels for the week ending?May 29. This is in contrast to the polled expectations of analysts for a 4 million barrel draw. Haitong Futures stated?in a report that oil prices are likely to move towards the higher end of their range because of a persistent imbalance between supply and demand as global crude inventories continue to fall rapidly. (Reporting and editing by Sam Li, Lewis Jackson, and Cynthia Osterman).
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South Korean beekeeper calculates the costs of climate change
Park Gyeong Je began tending beehives nearly five decades ago. He did it as a way to earn a living because he enjoyed spending time in the nature. He is now questioning how long he and other farmers will be able to survive due to the changing climate. The 65-year old runs a beekeeping business in South Korea's Sancheong County, but is also a migratory apiarist, which means he crosses the country with his beehives, chasing seasonal flower blooms. The 'climate change' is causing temperatures to rise, which in turn shortens the seasons. This causes flowers to bloom sooner and for shorter periods. Strong winds have been brought on by the weather changes, making it harder for bees to return to their hives. The bee population has also been affected by new diseases and mites. Farmers feel the seasons directly. "City people do not notice seasons. Park said as he cared for his beehives, "Now it feels like there's only winter and summer left." In 1979, he had eight hives. He now has around 110. Together, the beehives house approximately 8.8 million bees. Park stated that climate change has made it very difficult for beekeeping farmers. GLOBAL WORRIES Studies show that climate change is harming bees worldwide, affecting honey production, and many outdoor and indoor crops such as tomatoes, apples, and strawberries, which rely on the insects to pollinate. Yeh Sang Wook, professor of climate and energy systems at Ewha Womans University Seoul, said that a decline in bee populations will affect the food supply. "The fundamental substructure that makes up our natural world, the ecosystem, is in a way being destroyed." According to United Nations data, China was the largest producer of honey in 2018. It was followed by Turkey and Argentina. Honey's taste is a result of the floral nectars that bees collect. South Korea produces a lot of honey from black locust, which has a mild floral taste. However, there are other varieties, such as chestnut, which has a less sweet, earthier flavour. According to the World Integrated Trade Solution platform, 8.55 metric tonnes of natural honey were exported in 2024. According to Ministry of Agriculture statistics, the number of beehives used for migratory honeybeekeeping has decreased from 813 279 in 2014 to 813 279 in 2023. According to the National Institute of Forest Science, the total bee forage in South Korea in 2020 was 146,000 hectares (360,00 acres), which is about 70% less than in the 1970s and 1980s. Researchers from Kangwon National University warned that in January they had conducted a "pilot study" which showed that the pollination activities of South Korean bees would drop by 53.5% on average between 2040-2060, compared to their current levels. South Korea is joining other countries such as Germany and Greece in launching new urban projects that will boost bees. These include rooftop gardens. South Korea Rural Development Administration (an agency within the Agriculture Ministry) said it planned to introduce smart beekeeping technologies, as well as breed stronger honeybees to withstand climate changes. More needs to be done Park transports his bees across the country, stacked in three trucks and one van. He travels mostly at night while the bees are sleeping. He said that beekeepers share information on where flowers are blooming and where conditions are favorable to determine the best honey-making route. In the past, there were large climate differences between the southern and central regions. This made it very easy to produce honey. "Global warming has caused flowers to bloom at the same time across the country," he said. Park releases bees after obtaining the consent of the neighbours. He wears a mesh veil on his hat as he watches them extract nectar from the flowers to bring back to their hives to turn into honey. Park used to travel four times across South Korea in order to collect black locust nectar, but due to premature blooming now only makes two trips and honey is produced for one or two months. He said that honey production has dropped by 70% compared to 1990s and early 2000s. In the past, it took 20 to 23 day and we harvested eight to nine times. We can only harvest 4 or 5 times. Park expressed his hope that institutions such as South Korea's agriculture ministry would research and develop technology to improve bee survival during winter and to better manage temperature differences. The ministry announced that it would invest a total amount of 48,6 billion won (about $32.3 million) in research to restore bee health through 2030. Park is determined to continue. He plans to expand his beekeeping business by installing smart farming systems, including cameras in the hives that provide real-time updates about the growth of the bee colonies. He is also training his second daughter to eventually take over the beekeeping business. As long as I am healthy, I'll keep beekeeping till the day I die. "Even if I died and was born again as a person, I'd still want to become a beekeeper," Park added.
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Steel body: US tariff doubled to doubling US tariffs reduced EU steel exports 34%
Steel industry association 'Eurofer' said that EU steel exports have dropped by 34% to the U.S. since Washington raised tariffs from 25% to 50%. Higher duties on derivatives such as motorbikes and washing machines also hit European demand. Steel exports into the U.S. have fallen to 1,94 million metric tonnes in the last three quarters, since the Trump Administration doubled import tariffs for steel and aluminum from 25% to 50% a year earlier. Eurofer reported that in 2025 European Union producers will export 3.4 million tons of products to the United States, up from 4.1 million in 2024 and 4.7 millions in 2017. Eurofer stressed that it was vital?that the EU and U.S. fully implement their July trade agreement. The agreement was reached?at Donald Trump's Turnberry Golf Course in Scotland. It stipulates that the EU should remove its duties from most U.S. imports in exchange for a 15% U.S. tax on EU exports. The two sides also agreed to discuss the possibility of tariff-free steel and aluminum quotas, and how they can work together to reduce global overcapacity. Axel Eggert said, "the U.S. must fulfill its commitment to work together with the EU in order to find a resolution." The U.S. tariffs imposed on 'derivatives', whose metal content was initially subject to a 50 percent tariff, have also been a problem for EU producers. Trump expanded the product range a month following?the Turnberry agreement. Trump's administration has since reduced a number of tariff rates. A proclamation issued on Monday reduced the rate for some products from 25% to 15%. For?fridges?, lawnmowers?, or rail parts?, the rate remains at 25%. If this figure does not drop to 15% by year's end, the EU may suspend certain concessions. (Reporting and editing by Alexander Smith; Philip Blenkinsop)
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SpaceX receives Texas tax breaks on chip project ahead of record IPO
SpaceX received tax incentives for its proposed Terafab project in Grimes County Texas on Wednesday, despite fierce opposition from residents who warned that the development would strain the?local resources, and disrupt the rural communities. Investors see this project as an important part of 'SpaceX's' efforts to expand beyond satellite communications and rockets into advanced computing infrastructure, and chip production in the United States. SpaceX will launch the largest IPO ever next week at a valuation of approximately $1.75 trillion. Investors will be watching closely to see if the company is able to translate its dominance in the space industry into new markets related to AI and semiconductor production. After a heated hearing, which brought more than 100 people to the Grimes County Courthouse, a vote was held on three of the proposals. The courtroom was packed, with people spilling out into the hallways to hear commissioners' comments. Speakers warned that the project would strain the water and electricity supplies, harm wildlife, and permanently change the rural character of the county. One resident had to fight back tears as she described the impact industrialization could have on the environment and community. With a population of about 34,000 people, Grimes County is characterized by sprawling ranches, open land, and a quiet agricultural lifestyle. Residents say the site proposed near Gibbons Creek Reservoir has dark night skies, abundant wildlife, and a quiet rural lifestyle. As attendees left the room following the vote, one person said: "They sold Grimes County." COMMISSIONERS APROVE TAX INCENTIVES The results of the vote allow Grimes County, Georgia to negotiate tax breaks for a proposed advanced computing and chip manufacturing facility near Gibbons Creek Reservoir. SpaceX and its partner in the project, Tesla will initially invest $55 billion, which could rise to $119 billion when fully developed. Elon Musk is the billionaire who runs both companies. Three commissioners voted in favor of the three proposals: one that detailed SpaceX’s obligations regarding?infrastructure and job creation, another for a reinvestment area that would make SpaceX eligible for incentives and a third that would reduce SpaceX’s property tax burden. Tax abatement could temporarily lower SpaceX's taxes and attract investment, but critics claim this supposed economic tool can shift the tax burden to residents and existing businesses. Grimes County commissioner David Tullos - the sole dissenter - questioned SpaceX lawyer Bucky Brannen on the size of proposed reinvestment zones and SpaceX's plans regarding portions of land within them. Brannen stated that the final footprint for the project has not been determined yet and sought to assure residents that "nobody is going to have to sell their home." John Federspiel, the senior director of Starlink Product Engineering, SpaceX, stated at the hearing that "We acknowledge that large projects raise legitimate questions about environmental and infrastructure stewardship." Our company is committed proactively to addressing these concerns and taking them care of responsibly. Tullos, a dissenting member of the commission, stated before the vote that he had a "real problem" with the fact that we were going to give them a tax abatement of 100%. He said that an economic agreement would provide the county with a payment of $20 million per year in lieu of tax, also known as a "pilot." Residents voice strong opposition While the majority of the speakers were against the project, there was a small group who supported it, arguing that the project would create jobs and bring investment to an area they called economically disadvantaged while also helping the United States compete in the advanced technology market with China. Residents urged the commissioners to postpone the vote because they felt that the scope and impact of the project was not adequately explained. Shirley Hesse lives close to the proposed site and fears that the development will strain the local water and electricity resources. She said that developers "use utilities but don't pay, and taxpayers are left to foot the bill." Kerry Bost, a resident of Iola in Texas, said that the people were being asked to vote on something they didn't understand. Bost expressed concern about the impact of light pollution, among other things. Residents questioned the local officials' decision to consider tax incentives for an IPO that was expected to raise $75 Billion. Sadie May, a resident, said that she was against tax breaks for Musk, the richest man in the world. You cannot convince me Elon requires Grimes County's assistance for this project. You've offered the richest man in the world a Black Friday bargain on our resources and way of living.
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TransAlta buys Blackstone-backed Colorado gas fired plants for $1 billion
TransAlta Corp, a Canadian power producer, announced on Wednesday that it would 'acquire' two natural gas-fired peaks near Denver, Colorado, from Blackstone, for a price of $1 billion. This will strengthen its position in the Western U.S. energy market. As the power industry prepares to meet a rapidly growing electricity demand, driven in part by data centers that are power hungry, they have added flexible gas-fired capacities. The assets Mountain Peak Power and Canyon Peak Power have a combined 318 megawatts of capacity. They are contracted to long-term customers with high credit ratings for over?25years. The deal involves taking on $750 million of project-level debt, and raising $250 million through an equity sale. The facilities should generate approximately $80 million of core adjusted profit annually and about $33 million of free cash flow. Performance incentives will also add to the upside. Joel Hunter, CEO of the company, said that these assets would generate long-term cash flows which could be redeployed into other growth opportunities such as Centralia or Alberta data centres. TransAlta stated that the deal would immediately increase 'free cash flow per shares in the low to mid single digits. The transaction will close in the early fourth quarter of 2026. This is subject to the completion of the Canyon Peak facility which is scheduled to start operations in the third. (Reporting and editing by Arun K. Koyyur in Bengaluru)
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World shares drop, oil jumps as Middle East unrest deepens
On Wednesday, oil prices rose and global stocks declined as expectations of a quick end to the?Iran war faded. Wall Street's main three?indices? pulled back from recent records, with technology and financial shares dragging them down, while energy stocks tracked the rise of crude. The Dow Jones Industrial Average dropped 1.21%. The S&P 500 fell 0.74%. And the Nasdaq Composite lost 0.89%. The pan-European STOXX 600 Index fell by 0.66%. MSCI's global stock index fell by 0.65%. The tensions in the Middle East grew after Iranian attacks damaged Kuwait's airport and injured? dozens of people. Meanwhile, U.S. forces attacked targets near the Strait of Hormuz. Diplomatic efforts to stop the conflict made little progress. Wasif 'Latif, Chief Investment Officer at Sarmaya Partners, said: "The broad market and the technology sector have led the strong rally over the past few sessions. Today, we are taking a break." The headlines coming out of Middle East are the Iran War continuing to escalate and de-escalate. This is?the cause of the market's selloff today". Brent crude settled up 1.89% to $97.81, bringing oil prices close to $100 per barrel. AI HALO The?equity market continued to be supported by investor?enthusiasm for AI. In Asia, Japan and Taiwan stock indexes reached record highs. Marvell Technology shares rose by 3.73% on Wednesday, continuing gains made from Tuesday's record high after Nvidia CEO Jensen Huang dubbed the chipmaker as the next trillion dollar company. SpaceX, whose focus is on AI, will raise $75 billion through a massive initial public offering. This information comes from a source who has been familiar with the situation. Latif continued, "Our view remains that this strong run up in semiconductors and?data-center 'demand is a great way to pull forward future demand and consumption. This helps the economy." YEN INTERVENTION WORRIES The currency markets were nervous after the dollar reached the 160-yen mark, which is a level that usually heightens fears of possible intervention by Japanese authorities. The Japanese yen fell 0.11% to 160.05 per dollar. The Finance Minister warned about the fall of the yen on Wednesday. The euro is down 0.27% to $1.160. The dollar index (which tracks the currency against its peers) rose by 0.23% to reach 99.52. The markets had anticipated rate cuts prior to the Iran 'war, but now have priced in U.S. rates increases this year. A rate hike next week in Europe is already priced-in after the data showed that inflation increased last month. The traders see a roughly 75% chance that Japan will hike rates in June. U.S. Treasury 10-year yields increased 3.4 basis points, to 4.489%. U.S. private payrolls grew more than expected in may, according to data. On Friday, the official numbers for employment will be released in their entirety. Spot gold dropped 0.99% to $4440.06 per ounce.
Brazil's Equatorial bid $1.1 billion to win Copasa's privatization.
Brazilian power company Equatorial secured the strategic investor role in the privatization of water and sewage treatment firm?Copasa, committing to purchase a 30% stake at a cost of 5.59 billion reais (1.10 billion dollars), both companies announced on Wednesday.
In May, the government of Minas Gerais in Brazil's southeast region launched an offer of shares worth over $1 billion to relinquish its control of Copasa. This utility provides sanitation services for 12 million Brazilians.
The firms stated that Equatorial filed a bid for 49.03 reais a share, which is 3.8% higher than the minimum price set out by the state government.
Minas Gerais sold a 30% stake in Copasa (as a strategic investor) to Equatorial without any competition. This was after a consortium consisting of Aegea's shareholders Itausa Equipav, and Singapore GIC decided to withdraw from the process.
State government plans to sell up to an additional 20% of Copasa to broad investors in a second round of the share offer, scheduled to take place on June 11th.
Equatorial, which became one of the largest shareholders in Sao Paulo’s sanitation company Sabesp?in 2024, after a similar privatization agreement, has also stated its intention to purchase up to 48,000,000 additional shares?of Copasa during this second phase.
Equatorial stated that this could increase Equatorial's stake in Copasa from 42.6% to $7.9 billion reais ($1.6 billion) upon the conclusion of the offering, and its expenditures for the deal.
A source said that Minas Gerais had to review its privatization process last week after the first round of bids received from strategic investors fell short of the government's asking price.
(source: Reuters)