Latest News
-
Democratic lawmakers challenge U.S. finance chiefs for leaving climate pacts
Democratic lawmakers harshly criticised the chief executives at BlackRock, JPMorgan, and other top financial companies for leaving global coalitions dedicated to combating climate changes. They urged them to maintain their previous commitments, and policy targets to reduce greenhouse gas emission. A letter sent to executives by members of Congress revealed that, in the face of increasingly severe weather and financial risks, their bosses "actively" decided to relinquish leadership over climate change. The letter sent on Thursday also requests records of any communications between the executives and the Trump administration about plans to reduce their environmental and social work. It said: "We are disappointed in your organization for ignoring science and what is good for business and instead giving into political pressure to gain short-term political advantage." Maxine Waters (Democrat, ranking member of the House Financial Services Committee) sent the letter to the chief executives of Morgan Stanley and Citigroup, as well as Wells Fargo. Franklin Templeton, State Street, Invesco, Pimco and Bank of America. Pimco has declined to comment. Wells Fargo and Bank of America have also declined. Citi, JPMorgan, Citigroup, Goldman Sachs and Wells Fargo did not respond immediately when asked for a comment. The institutions left the Net Zero Banking Alliance or the Net Zero Asset Managers Initiative, or Climate Action 100+. Members of these organizations had committed to either cutting emissions related to their activities or engaging with invested companies on climate issues. Most of the institutions left the groups saying they would still reduce emissions, but they did not mention the political pressures from some Republican politicians who claimed that the companies were unfairly trying to limit funding to the fossil-fuel industry. The burning of coal, oil, and gas is the main cause of global warming. Countries have agreed to reduce these emissions, but the Trump administration has recently pulled out the U.S. The letter also asked the CEOs to confirm that they intend to meet their stated goals for emissions reduction and to describe how they plan to do so. In the letter, they were also asked to explain their reasons for not publishing their progress; to provide details of existing policies and targets to reduce emissions in accordance with the Paris Agreement; and to pledge not to weaken these. It asked the banks if they still intended to set targets and policies for so-called "facilitated", greenhouse gas emissions. These include those that are linked to companies issuing bond issues, which a bank has underwritten. In the letter, it was also asked if the banks will stick to the same timeline for emission reduction goals. All companies were asked to provide details of their communications with the Trump Administration regarding the reduction in environmental, social, and governance activities, including any directives freezing funds for climate-related federal programs such as the Greenhouse Gas Reduction Fund.
-
Trump Administration to audit billions of energy grants awarded by Biden
The Trump administration announced on Thursday that it would audit grants of $15 billion awarded to projects involving the power grid, manufacturing supply chains and other infrastructure during the Biden Administration. Donald Trump has pushed for domestic oil, gas and coal production while also halting the construction of offshore wind farms and taking measures to relax regulations on fossil fuels. Last week, the Republican Trump administration proposed to cut billions of dollars from funding for renewable energy projects and electric car chargers. The DOE has been reviewing the billions that were rushed through the door in the last days of the Biden Administration, Energy Secretary Chris Wright stated. The Energy Department of former Democratic President Joe Biden received billions of dollars from the offices of grid implementation, manufacturing and energy supply chain. The DOE will examine materials, including information that companies submitted as part of award applications, and ask for additional information from companies. Wright's memorandum stated that "if it is determined projects do not meet Standards then DOE can modify the project, or DOE at its discretion may terminate the project, based on the result of DOE evaluation as permitted by law." Wright stated that "any reputable business will have a system in place to evaluate spending and investment before money is spent. The American people deserve nothing less from their federal governments." Bridget Bartol was the deputy chief of staff for the DOE during the Biden Administration. She said that the move is harmful to energy projects. She said that it appears the administration is looking for a legal way to cancel projects they disagree with. Bartol stated that "the fact is, awarded projects have been thoroughly vetted both on a technical and financial basis." The vast majority of the projects under review will likely be aimed at strengthening U.S. industry, increasing electrons, and building secure infrastructure. The Department of Energy has said that it is requesting more information in order to review the awards. It also prioritizes large-scale commercial project. The Energy Department has said that the audit, currently in its first phase, may be extended to other DOE programs offices. This could result in billions of dollars of grants for different projects being reviewed. (Reporting and editing by Leslie Adler; Timothy Gardner)
-
US rooftop solar companies claim that the Republican House bill will be a major setback
Solar panel companies say that a Republican budget bill passed by Congress this week will deal a major blow to their industry. It will eliminate a generous homeowner subsidy that has boosted the growth of the industry. Industry players say the bill would eliminate a 30% federal tax credit for taxpayers installing rooftop solar systems. This would stifle an industry which has grown by ten times in the past decade and now employs over 100,000 workers. Charlie Hadlow is the president of EnergySage - an online solar marketplace. He said, "It's a huge setback." I have solar installers within our vast network who are passing on the contact details of bankruptcy attorneys. This is not alarmist. It's actually happening. Solar Energy Industries Association, a trade group, says that many of the largest residential solar markets are located in states which voted for Donald Trump. These include Texas, Florida, and Arizona. The House Ways and Means Committee, which is part of the Republican Party, voted to let the 25D Tax Credit expire nine years sooner than originally planned. This was done as part of the Republican's effort to reverse the subsidies provided by the Inflation Reduction Act, former president Joe Biden’s signature climate legislation. A Republican spokesperson on the committee didn't immediately respond to an inquiry for comment. There are still several obstacles to overcome before the bill can be passed by Congress. The White House didn't immediately respond to our request for comment. Trump wants to undo the federal regulations and programs that Biden introduced aimed at expanding renewable energy and fighting climate change. EnergySage estimates that roof-mounted systems would cost about $8,000 to $9,000 more without the 25D tax credit. Subsidies are crucial for small installers, whose clients pay in cash or borrow money and claim the credit when filing their tax returns. The House bill will extend the tax credit until 2032, but it will be phased out by 2029. This market is dominated largely by Sunrun and other large players. You want to increase the burden of taxation on regular Joe? Jack Ramsey, CEO at Altsys Solar, Tulare in California, said: "It doesn't feel fair." Ramsey expects to reduce his nine-person team down to four or five if credit is removed. By 2024, U.S. residential solar power will reach 36 gigawatts, up from just 3 GW back in 2014. This is equivalent to a quarter of nuclear power's capacity. According to the Interstate Renewable Energy Council, rooftop solar is responsible for more than one-third of all solar industry jobs. Rob Kaercher is the CEO of Absolute solar in Lansing Michigan. He has 24 employees, and wants to add more. But he won't if credit disappears. Kaercher said to reporters, "I urge the credits to remain in place because it will help local businesses like ours continue to grow and hire." Many in the industry were surprised by the decision to eliminate credit. Thomas Clark, owner of Northstone Solar, Whitefish, Montana met with the staff from his state’s Congressional delegation earlier this year in Washington and felt that the credit would be safe. Clark stated that "this happening so soon after these meetings really hurts a constituent." (Reporting and editing by Nichola groom)
-
A lawmaker calls for an explanation of the Trump administration's decision to remove intelligence analysts
The top Democrat of the U.S. House Intelligence Committee on Wednesday asked Director of National Intelligence Tulsi Gabriel to provide proof of her alleged political bias, which led to her ousting the heads of intelligence community's most analytical body. Gabbard removed the two after the National Intelligence Council issued an assessment that contradicted the legal argument used to deport members of the Venezuelan criminal gang Tren de Aragua by U.S. president Donald Trump. The Trump administration used the claim that Tren de Aragua coordinates its U.S. actions with the Venezuelan Government of President Nicolas Maduro in order to invoke the 1789 Alien Enemies Act to justify deportations to a maximum security prison in El Salvador of alleged gangs members. A spokesperson for the ODNI confirmed that Michael Collins was fired as acting NIC Chairman and Maria Langan-Riekhof as his vice chairman. She added that Gabbard had "dismissed them because they could not provide unbiased information." The spokesperson did not provide any examples of alleged biased intelligence that led to the dismissal of Michael Collins and Maria Langan-Riekhof. Fox News was the first to report their dismissal. Two sources, who spoke on the condition of anonymity, said that Gabbard had sent the operatives back to their respective intelligence agencies. A source told us that she has not yet made a decision about whether to fire them or bring them back to NIC. Jim Himes is the top Democrat of the House Intelligence Committee. He wrote to Gabbard to say that she failed to inform congressional intelligence panels about her decision to oust Collins, Langan-Riekhof, and others. Himes wrote: "According anonymous sources quoted in the Fox News article, you terminated two individuals because of their supposed "political bias"." This is a serious accusation against career intelligence officers, and as such requires evidence. He asked Gabbard to provide the committee with proof of this by May 21, 2019. The NIC assessment, released through a Freedom of Information Act Request last week, contradicted claims made by the administration about the gang’s connections with Venezuela’s government. The assessment concluded that "while Venezuela's permissive climate allows TDA to function, the Maduro government probably doesn't have a cooperation policy with TDA or isn’t directing TDA operations and movement in the United States," Mark Warner, top Democrat of the Senate Intelligence Committee, accused Gabbard, in a press release, of "purging intelligence officials because the Trump administration finds the report politically inconvenient." One source stated that, in a similar matter, the CIA "pushed back hard" on an attempt by Gabbard, to take over the drafting the top-secret Presidential Daily Brief. This is the daily compilation of the most classified U.S. Intelligence prepared for the President. A third source who is familiar with the matter cited an internal CIA memorandum that stated that a team of agency officials are working with Gabbard on moving the office responsible for preparing the brief, and that a timeline was still being worked out. The ODNI spokesperson denied that Gabbard tried to take over the Presidential Daily Brief and instead moved it physically from the CIA into the ODNI, "in a streamlined effort and a continuation of workforce." (Reporting and editing by Jonathan Landay, Erin Banco, Caitlin, Michael Perry, and Deepa Babington;
-
ADNOC seeks EU okay under foreign subsidies rules for Covestro deal
ADNOC, the state-owned oil company of Abu Dhabi, requested approval from the EU on Thursday under the rules on foreign subsidies for its $16.4 billion acquisition of German chemicals firm Covestro. The request was made on the website of the European Commission. ADNOC's largest acquisition ever, for which it received the green light last week under EU merger regulations, demonstrates the Middle East countries diversification of investments in order to reduce their dependence upon oil. The EU's Foreign Subsidies Regulations (FSR) target unfair foreign aid to companies in order to reduce the competition from non EU companies that are subsidised by their government. The European Commission (which is the antitrust regulator of the 27-country block) set a deadline of June 24 for its decision. If it has grave concerns, the company can launch a full investigation within 25 days. A so-called "in-depth" investigation would take 90 days. This can be extended to 3 weeks if the company offers remedies. The UAE's e& telecoms group was able to acquire assets of Czech company PPF only after it agreed to remove a state guarantee that could not be removed and to refrain from providing foreign subsidies to the merged entity. This was the first case to be investigated in full under the FSR.
-
Black Sea CPC blend daily oil exports will rise in June, according to sources
Five trading sources who are familiar with the loadings for June have estimated that Black Sea CPC blend crude oil exports will be between 1.6 and 1.7 million barrels a day (bpd). The exports in May will be approximately 1.5 million bpd higher at that level. According to sources in the trade, around 90% of CPC Blend is exported from Kazakhstan. The remainder comes from Russian production. Kazakhstan's oil production has been a major point of contention within the OPEC+ Group, since it has consistently exceeded its production quotas over the past year. Kazakhstan's Energy Ministry said this month, despite the fact that it was committed to OPEC+. CPC Blend loadings are scheduled to be slightly lower than the previous month of May due to planned pipeline maintenance for three days towards the end the month. The Caspian Pipeline Consortium does not comment on the monthly exports that are made through its system. The CPC pipeline connects Tengiz in western Kazakhstan, as well as a few other fields, with the CPC terminal at Yuzhnaya Ozereyevka, near Novorossiisk. CPC shareholders include Russia (31%), Kazakhstan (20.75%) Chevron (15%) ExxonMobil subsidiary Mobil Caspian Pipeline Company (7.5%) and other companies.
-
Hearing on Barrick’s Loulo Gounkoto Mines in Mali has been postponed until May 22
The president of the Malian court announced on Thursday that a hearing on the Loulo-Gounkoto mine complex owned by Barrick Mining, scheduled for Thursday, has been moved to May 22. Barrick Mining (formerly Barrick Gold) and Mali’s government are at odds over the implementation of the new mining code, which raises taxes while giving Mali’s government a larger share of the gold mines. Mali's army government, along with others in West Africa says that it wants to increase revenue from the mining industry as it feels the current arrangements are unfair. Foreign multinationals will have to comply with the demands of the military government if they wish to continue operating in this gold-rich nation. Barrick claims it has made significant investments in the Malian economic over the past 20 years. It accuses government officials of shifting the goalposts and demanding more money. They also claim that some of their executives have been unfairly detained in an effort to blackmail Barrick. The majority of multinational mining companies operating in Mali are now on board with the new code. Resolute Mining, a mining company from Australia, reached an agreement with Mali after its chief executive had been detained there for more than a week. The Tribunal de Commerce in Bamako was to hear a request from the Malian government, which owns a 20% stake of the Loulo-Gounkoto mine complex, on Thursday to place the mines under temporary administration. According to a source familiar with the situation, the aim of the request was to resume operations at the complex which had been suspended for several months. If the request is granted, it would be a significant escalation in the dispute between West Africa and the Canadian miner. The mines ceased operations in mid-January, after the government confiscated around 3 metric tonnes of gold valued at $317 million at the price of last week. They accused the company of failing to meet its tax obligations. Barrick's gold was blocked by the government since early November. Barrick denies all wrongdoing. Barrick reported in its earnings update of May 7, that it received on April 17, a warning from the government, threatening to implement provisional management until the mines reopened by April 20, if they did not. Barrick says it will only restart operations once the Malian government lifts its restrictions on gold exports. The two sides are currently negotiating a memorandum to resolve their dispute. Mark Bristow, CEO of Barrick, said this month that both sides were close to an agreement at least three times before. Reporting by Fadimata Kotao, Writing by Portia Crowe; Editing and Revision by Elaine Hardcastle & David Evans
-
After Russia-Ukraine meeting, defence stocks rise in the STOXX 600 index of Europe
European shares recovered from an early drop to close higher Thursday. Industrial stocks got the biggest boost while corporate earnings were in the spotlight. The STOXX 600 index for the continent was up by 0.6%. The majority of major regional indexes rose, with Germany up 0.7%. Russian President Vladimir Putin snubbed challenge To meet face-toface with Ukrainian president Volodymyr Zelenskiy in Turkey is to deal a serious blow to the prospects of a breakthrough for peace. Hensoldt, Rheinmetall and Leonardo all saw gains of 4% or more. The European aerospace and defence index rose 2.3%. Chris Beauchamp is the chief market analyst for IG. In the meantime, data from the U.S. revealed a surprise fall A slowdown in the growth of producer prices and in Retail sales growth. Beauchamp stated that there was a reasonable amount of anxiety to monitor the economy and check for signs of inflation. "The data were benign... that's the most important thing" (in this uncertain climate). After their quarterly reports, France's Engie and London's National Grid and United Utilities rose, and lifted utilities by 1.9%. The biggest gains were in the telecommunications sector, boosted by a 2.8% rise in Deutsche Telekom following its first-quarter results. Profit from the newest technology A little bit above expectations The benchmark STOXX600 index was higher in most sectors, but a drop in commodity prices hurt companies with a resource focus. Oil prices fell more than 3% in anticipation of a possible nuclear agreement between the United States and Iran that could increase supply. The major oil companies were the worst hit, with BP shares and Shell's Amsterdam-listed shares dropping by 3.3% and 1.55% respectively. Energy shares fell 0.9%, underperforming peers. The prices of industrial metals have also fallen, resulting in heavy losses for basic resources. The mood was positive in the markets this week as they welcomed the U.S. China trade truce, and U.S. president Donald Trump's Middle East investment deals. Trump is yet to announce any deals with the European Union. A flash estimate shows that the gross domestic product grew slightly less than expected on an annual basis. However, Britain's economy did better than expected in March compared to February. Among the single stocks, thyssenkrupp fell 12.5%, to the bottom of STOXX 600 after the group that makes everything from submarines to car parts posted a drop in its operating profit for the second quarter. Analysts attribute the 1% drop in Siemens shares to a weaker than expected free cash flow despite Siemens' beating expectations for its second-quarter results. Reporting by Nikhil Sharma, Purvi Agarwal and Varun H K; Editing by Sherry J. Phillips, Varun HK and Ed Osmond
Angola's economic and debt challenges
The International Monetary Fund cut its growth forecast for Angola in 2025 to 2.4%. This was primarily due to concerns over the impact that lower crude oil prices would have on government finances, and the higher interest rates seen on global markets.
Angola's economic and debt challenges are explained here:
Why are investors concerned about Angola? The dollar bonds of the small African economy were also hammered during the turmoil on the markets that followed the U.S. tariffs imposed at the beginning of April. Concerns grew in April, when JPMorgan requested an additional $200 million of security from the government to back its $1 billion loan backed by Angola’s dollar bonds. Angola was also heavily exposed to the oil price drop that came with the turmoil on the markets. This heightened the concerns.
IMF data shows that Angola's crude oil exports are the second largest in sub-Saharan Africa. They account for 95% of its exports and 60% of government revenues. It is also estimated to be responsible for three quarters or all economic activity.
In its budget for 2025, the government assumed that oil prices would be $70 per barrel. However, during the peak of the market sell-off the price fell as low as $65. Brent crude traded at $63.93 per barrel on Thursday.
All of this is happening as the government must repay external debts totaling $9.1 billion in this year. This includes a Eurobond that matures in November.
WHAT HAS GOVERNMENT SAYN ABOUT THE PROBLEMS? Vera Daves de Sousa, Finance Minister, said that the drop in oil prices has increased the likelihood that the government will turn to the IMF to get a new loan.
The Ministry of Finance has also defended the borrowings up to this point by saying that loans were used for building hospitals and boosting water supply.
The government said that it would review its budget if pressure continues. It will also carefully consider its future debt financing to ensure debt sustainability. Angola's analysis of debt sustainability shows that the total debt was close to 70% GDP last year, and is expected to continue to fall as a percentage of economic output.
The IMF, however, classifies Angola as a country at high risk of financial distress due to its exposure to currency risks. Around 80% of Angola’s debt is held in foreign currencies, including oil-backed Chinese loans.
The government claims it has increased repayments to China, and that the country can weather the storm of lower oil prices. Angola does not have a strong local debt market to which it can turn when external financing becomes tighter.
The IMF stated that a push last year to remove fuel subsidy to relieve financial pressure did not achieve the desired savings.
What is the social impact and what are the government's options?
Angola’s social service spending has decreased by 55% in the last two years due to the increasing debt burden. Debt Justice is a campaign group based in London.
Analysts said that the pressure had also hampered its ability to invest heavily in infrastructure projects. Angola plays a major role in a new U.S.-backed transportation corridor, Lobito. It links the Democratic Republic of the Congo, Zambia, and Angola’s Atlantic Coast, which exports minerals.
This week, the government held talks with IMF officials. One of these meetings was between IMF Africa chief Abebe Aemro Selassie (and Angola President Joao Lurenco) in Luanda. Angola has not yet provided any information on a possible new lending program. Reporting by Duncan Miriri, Nairobi; and Miguel Gomes, Luanda. Editing by Karin Strohecker & Toby Chopra.
(source: Reuters)