Latest News
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The EU Parliament has voted to freeze sustainability regulations
The European Union gave itself more time on Thursday to negotiate changes that would exempt smaller companies from the sustainability reporting requirements, which European industry claims put them at a disadvantage. In February, the European Commission proposed legal changes that it called "Simplification Omnibus", which would exempt thousands smaller European companies from EU sustainability reporting requirements. The EU responded to the complaints of industry in Europe that it could not compete with its rivals from China and the United States where President Trump has rolled back regulations and imposed tariffs on imported goods. Negotiations between the European Parliament, member states and the proposal can take up to a year. To avoid laws already agreed upon being implemented before the negotiations are concluded, the European Parliament voted Thursday to delay the reporting rules in place for most companies by two years. Firms with less than 500 employees, and those larger companies that are not considered "public interest entities", will not be required to report their sustainability impact until 2027. Reports must then be submitted in 2028. The reporting requirements for most larger firms are due this year. On Thursday, the Parliament agreed to postpone by an additional year the EU supply chain law. This policy will therefore not come into effect until 2028. The EU countries have already approved the delays but will need to give their formal approval within the next few weeks. This final vote is just a formality and is expected to be passed. Negotiations will begin then on the larger proposed changes to laws. The changes include excluding 80% of companies that were initially subject to the green reporting regulations by only applying the rules to companies with over 1,000 employees. The EU wants to amend its due diligence laws so that companies must assess their supply chain for environmental and human right problems every five years instead of every year. While the industry has backed the move to simplify, some investors, lawmakers on the left and activists have criticised the initiative. They said that the first round of omnibus proposals will undermine corporate accountability, and such rapid changes to laws recently agreed create an unstable environment. (Reporting and editing by Barbara Lewis; reporting by Kate Abnett)
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Wall Street to plummet as Trump tariffs decimate dollar
The dollar, oil and world stocks all fell on Thursday after President Donald Trump’s new U.S. tariffs raised fears of a global economic recession. This led investors to look for safe haven assets such as bonds and the Japanese yen. The new 10% baseline tariff on imported products, plus the eye-watering tariffs that Trump imposed on dozens countries he claimed had unfair trade barriers, left traders frightened by their severity. S&P 500 futures and Nasdaq's futures both fell 3.4% and 3.9% respectively ahead of what is expected to be an unsettling start in the United States. Dollar's 2% drop was heading for the worst daily loss since November 2022, and the toughest start of any year since 1995. Brussels and other capitals expressed outrage over the new reciprocal 20% levy imposed on the EU 27-country bloc. The bourses in Europe fluctuated between 1.3% and 2.6% declines. Tokyo's worst week since nearly two years was in Asia, which saw some of the most severe tariffs. Tokyo fell 2.7%. Vietnam was hit even harder. JPMorgan analysts said that the tariffs are "significantly higher" than what the worst-case scenario predicted. Fitch, a credit rating agency, warned that they could be a game-changer for the U.S. economy and global economies. Deutsche Bank said it was a moment "once in a life time" which could reduce U.S. economic growth by between 1%-1.5% this year. Olu Sonola, Fitch's director of U.S. Economic Research, said that many countries would likely be in a state of recession. If this tariff rate is maintained for a long time, you can forget about most forecasts. Fitch lowered China's credit ratings shortly after, citing steep U.S. import tariffs. The rush for ultra-safe government securities that guarantee income has driven U.S. Treasury rates down to 4%. Germany's 10-year yield - the European benchmark borrowing rate – fell by 8.5 basis points, reaching 2.64%. The new import taxes will be the highest in a century in the largest economy in the world. In the event that they trigger recessions, it is likely that central banks will cut interest rates around the globe, benefiting bonds. Wall Street braced itself for a brutal beating on Thursday. Apple's stock dropped 6.5% due to the tariffs imposed on China, the country where it does most of its manufacturing. Amazon.com fell over 5%. Microsoft dropped 1.8%. And AI poster child Nvidia dropped 3.5%. This comes after the worries about tech giants have risen to the point where trillions of dollars have been wiped from their books this year. Nigel Green is the CEO of deVere Group, a global financial advisory firm. He said: "This is what you do when you claim to supercharge the economic engine of the world." CHINA FOCUS Trump's tariffs were particularly harsh on Asia. China received a reciprocal tariff of 34%, Japan 24%, South Korea 25 % and Vietnam 46%. In response, Vietnamese stocks fell 6.7% and Nike, Adidas, and Puma who all rely heavily on Vietnamese and other Asian producers were smashed by as much as 10 %. Investors sold exposure to global growth as the risk-sensitive Australian Dollar also fell. Brent, which is a proxy of economic activity, fell as much as 4%, pushing it back below $72 per barrel. It's on track to have its worst day this year. The gold price reached a record-high of $3,160 per ounce but then slowed down. Meanwhile, the Japanese yen rose more than 1.5 percent to 147.01 dollars as traders sought safety outside of the U.S. Dollar. The Swiss Franc, another safe haven currency, reached its highest level in four month as the euro soared 2% to $1.10.00 Ursula von der Leyen, EU chief, said that the consequences would be disastrous for millions of people in the world if the talks with Washington fail. She added that the 27-member EU was prepared to strike back if the talks failed. "Uncertainty spirals and will trigger the rise of more protectionism." China's currency remained relatively stable, with the yuan dropping only 0.4% in spite of tariffs on Chinese exports exceeding 50% and Vietnam being hit as a result. The Chinese economy is large and there's a hope that Beijing will support Hong Kong and Shanghai stocks. Losses in Hong Kong were limited to 1.5%, and Shanghai losses to 0.5%. George Saravelos, a Deutsche Bank strategist, says that the key focus in the coming days will be whether the dollar continues its decline and how Europe and China may respond. He warned that "given the dramatic nature" of the moves the dollar was at risk of a wider confidence crisis.
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Executives, trade and labor associations comment on Trump's reciprocal duties
Donald Trump announced on Wednesday that he will impose a baseline 10% tariff on all imports into the United States, and higher duties for some of the biggest trading partners. This could lead to a trade conflict and upset the global economy. Countermeasures from trading partners could result in a dramatic increase in prices of everything, including bicycles and wine. Trump has already levied 25% on automobiles and auto parts. The latest responses from business executives, unions and trade associations. Companies STELLANTIS The automaker announced that it would temporarily stop production in some of its Canadian assembly plants and Mexican assembly factories, including its Windsor assembly facility in Canada. ANTONIO BARAVALLE is the CEO of LAVAZZA We had planned to increase the local production (in the U.S.A.) by 100%. "We're ready to go... but there's this other element to investigate, the duties for Brasil... If they put 10% on Brazil, then the duty (of 20%) is already half. The coffee maker produces about 50% of the amount it sells locally in the U.S. FERRARI The purchase contracts for Ferraris contain standard and clear clauses that allow the company to adjust the price in the event of a change in the market conditions before the vehicle is delivered. A Ferrari spokesperson confirmed that new tariffs would also be applied to Ferrari cars that were ordered in the past but have not yet been delivered to the U.S. MOTOFUMI SHITARA, CEO, YAMAHA MOTOR "Our exports will certainly be affected." We will have to raise prices or reduce costs if these tariffs are extended over time, even for vehicles. SHIPPING GROUP MERSK "We expect our customers to be more careful about their stock levels." We're likely going to see some air freight rush orders in the U.S. very soon, before the tariffs go into effect. We will also see an increase in the demand for bonded warehouses as customers want to delay clearing their goods until they have more certainty." GERRESHEIMER MAKES PACKAGING & MEDICAL EQUIPMENT Tariffs are primarily affecting our exports to the U.S. from our Mexico-based plant. Injection vials are one example. We will pass on these customs fees to our customers as an additional cost. We will be able, if necessary and if customs duties remain in place for a longer period of time, to move our capacities." Our production network in the U.S. opens up business opportunities with pharmaceutical companies who are increasingly looking to source and produce locally in the U.S. MASSIMO BATTAINI is the CEO of CABLE MAKER Prysmian "On initial reaction, it appears that the announcement has a positive effect on local production. The tariffs are only applied to the finished product, so there is no risk of U.S. producers being undercut by foreign competitors. We are the best placed in the industry to maintain our leadership. With 30 factories spread across the U.S., we have the most factory capacity. ANDERS VINDEGG HEAD OF MEDIA RELATIONS, ALUMINIUM HYDRO PRODUCER "We work actively from Norway as well as in Brussels, the EU to inform and to actively work with the organizations and other measures we're part of in order to leverage the importance Norwegian aluminium for Europe." We're using our network, and our people are on the ground working with the U.S. Administration to understand the effect of the tariffs. ASSOCIATIONS International Apparel Federation, representing garment manufacturers in 40 countries The announcement by the US government of high taxes on trade with the rest is a shock to the global apparel industry. This unnecessarily creates an entirely new, often irrational world that affects billions of dollars in investments and the lives and livelihoods of tens and millions of people who work in our industry worldwide. Someone will pay the price." CANADIAN STEEL ASSOCATION To reduce its dependence, the Canadian Steel Industry urgently needs the adoption of border measures to address unfair trade in steel in Canada, and help recapture the Canadian Market for our industry, workers, and communities. The Spanish Association of Olive Oil Exporters This 20% is a serious disadvantage for the Spanish olive oil industry, as compared to other countries that produce olive oil but do not belong to the European Union. "98% (of the olive oil consumed by Americans) is imported, so these tariffs would result in an increased purchase price which will be paid by U.S. consumers." consumers." KEVIN CREAVEN, CEO, BRITISH AEROSCAPE AND DEFENCE INDUSTRY GROUP, ADS, ON THE AEROSPACE INDUSTRY COMPONENTS We are not sure if the exemption from all tariffs (on items classified as airworthy by regulators) is still in place and if these tariffs are applicable or not. This could make the situation worse. COPA-COGECA EU FARMING GROUP The introduction of additional tariffs could disrupt global supply chains and drive up prices. It would also limit the market access of farmers and agricooperatives from both sides of Atlantic. This will have significant economic implications for the agricultural industry. "Copa & Cogeca urge EU & US policymakers in the next days to exhaust all diplomatic efforts." Both sides must be constructive in addressing grievances, without jeopardizing trade benefits. ANTHONY BRUN, HEAD OF FRENCH GROWERS ASSOCIATION (UGVC) "One might have been frightened by much higher tariffs. However, this risk remains and is associated with a possible conflict over bourbon whisky. Already, we face tariffs from China. Now, there is the U.S. and the consequences are going to be brutal for wine growers. ETHAN LANE SENIOR V.P. OF GOVERNMENT AFFILIATIONS, NATIONAL CATFARMERS BEEF ASSOCIATION "President Trump has taken action to remove numerous trade barriers which prevent overseas consumers from enjoying high quality, wholesome American Beef. NCBA will engage with the White House in order to optimize export opportunities and ensure fair treatment of America's beef producers worldwide. SIGRID de VRIES, DIRECTOR GENERAL, EUROPEAN MOBILE MANUFACTURERS ASSOCIATION "We urge both leaders to meet immediately to find a resolution to any issues that prevent free and fair trading between historical allies, and to allow the EU-US relations to flourish again." SWISS BUSINESS GROUP ECONOMISSE "Another escalation in the trade conflict is to be avoided. Swiss economic diplomacy and the Federal Council are urged to find quick solutions with the U.S. Government at the negotiation table. "From an economic perspective, the U.S. tariffs on Switzerland are not comprehensible - rather the opposite." DIRK JANDURA HEAD OF GERMANY EXPORTERS ASSOCIATION (BGA) "We'll have to pass on these tariffs as price increases and this will impact turnover in many instances." It is a blind economic alley that will lead to welfare losses on both sides of Atlantic. Reporting by Bureax; compiled by Greta Rose Fondahn and Linda Pasquini, edited by Sayantani Ghosh and Shounak Dasgupta. Alan Barona, Milla Nissi, and Sayantani Ghosh.
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India restricts steel purchases to favor domestic mills
A government notification revealed that India tightened its steel procurement rules in order to favor domestic production. This is at a time where mills are suffering from lower prices for iron and steel as a result of a large influx of cheaper imported products. India's imports of finished steel from China, South Korea, and Japan reached a record in the first ten months of the previous fiscal year that ended on March 31. All Indian ministries, departments, and agencies are required to give priority to locally produced iron and steel under the new "Domestically Manufactured Iron And Steel Products Policy-2025". A gazette notice published on 1 April indicated that the policy was valid for five-years and could be extended by the Ministry of Steel at its discretion. The notification stated that specifying foreign certifications in the bid documents or unreasonable technical requirements is a discriminatory and restrictive practice against local suppliers. According to the policy, foreign entities and governments that do not permit Indian mills to take part in their tenders will not be permitted to participate in Indian government bids except for certain items specified by the Steel Ministry. However, the policy excludes any steel grades that are not produced in the country or if the domestic mills can't meet the required quantity for a particular project. This move comes after the Directorate General of Trade Remedies (which functions under the Trade Ministry) recommended a temporary tax of 12% for 200 days on some steel imports in order to reduce "serious harm" to the domestic market. (Reporting and editing by Neha Arora, Manvi Pant)
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What you need to know about the new CEO of Nigeria's oil company NNPC
Nigerian President Bola Tinubu appointed former Shell executive Bayo Ojulari to lead the Nigerian National Petroleum Company. This appointment has raised hopes for a much needed overhaul of the state-owned company and an increase in oil production. NNPC, Nigeria's golden goose for so many years, has seen its finances deteriorate in recent times due to corruption, opaque deals and high-level politics meddling. The new leadership will have to tackle these issues if it wants the company – and the economy – back on track. What you need to know about NNPC operations Why is NNPC important? Nigeria's economy depends on oil. Oil accounts for 90% exports, and usually half the revenue that funds its national budget. The performance of NNPC is therefore critical to the economic wellbeing of Africa's largest nation. Kelvin Emmanuel, an energy analyst based in Abuja, said: "No Nigerian President can move the needle on the economy unless he addresses the long-standing hydra-headed problems that have turned the state oil corporation into a cesspool of malfeasance over the past decades." Nigeria produces approximately 1.75 million barrels per day of oil, mainly through NNPC joint ventures with international partner Shell, ExxonMobil TotalEnergies Chevron Eni and Eni. NNPC, Nigeria's biggest refiner of fuels and also its largest importer, reported last year that the company had assets worth $161 billion. RESTRUCTURING NNPC Analysts said that Ojulari's biggest task, as a veteran of the industry with 24 years experience, is to restructure NNPC in order to make it more efficient. This could include cutting the workforce by over 5,700 people and selling some of NNPC’s assets, including petrol stations and struggling refineries, to focus on oil production. Analysts said that any major changes could be met with resistance from politicians who have influence over the appointments made at NNPC, and also benefit from contracts signed by the company. Jeremiah Enoch is an associate with the consultancy firm J.S. Held said that Ojulari will also need to navigate "the persistent problem of ethnic politics in the organization," referring to the way ethnic identity can make careers or break them in Nigeria. TRANSPARENCY NNPC is accused of being opaque for a long time. After four decades, it only began publishing financial results in the year 2021. After months of denial, the company finally acknowledged in September that it was under financial stress and owed gasoline suppliers $6 billion. NNPC also has not revealed how much of future crude revenue is earmarked to repay loans, although local media reports that the figure could reach billions of dollars. Clementine Wallop of political risk consultancy Horizon Engage said that Ojulari is facing a difficult challenge in order to maintain recent production gains, which many believe will support Nigeria's economic recovery. She said that "he will need to use all of his skills in order to face some serious challenges for NNPC. The company has been going through a rough financial time over the past year." A senior official at the company said that restructuring and transparency will also prepare NNPC to launch its planned IPO, which is expected in 12-15 months. This IPO could provide a valuable injection of new capital. $1 = 1,532,3880 naira (Reporting from MacDonald Dzirutwe, Ben Ezeamalu, and Ope Adetayo, in Abuja; editing by Joe Bavier).
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OPEC+ accelerates oil production increases, but oil drops
Eight OPEC+ nations agreed Thursday to increase oil production by 411,000 barrels a day in May. This unexpected decision caused oil prices to extend their earlier losses. Brent crude, which had already fallen over 5% after U.S. president Donald Trump announced tariffs against trading partners, continued to fall over 5% as OPEC released a statement updating its plans. Brent crude fell over 5% toward $70 a barrel. In May, eight members of OPEC+ (which includes the Organization of Petroleum Exporting Countries, and its allies, led by Russia) were scheduled to increase their output by 135,000 barrels a day as part of a gradual unwinding of the most recent layer of production cuts. After a meeting online of the eight nations held on Thursday, the group said it would increase output by 411,000 Bpd in may. OPEC cited the "continuing positive market outlook and healthy market fundamentals." In a statement, OPEC stated that the increase was originally planned for the month of May and included two monthly increases. The gradual increases can be stopped or reversed depending on the market conditions. The May increase is part of a plan that Russia, Saudi Arabia and the UAE have agreed to implement in order to slowly unwind the most recent production cut of 2.2 millions bpd. This was implemented this month. OPEC said that the eight countries would meet on May 5, to decide June's output. OPEC+ has also agreed to cut 3.65 million bpd in other production until the end next year. Reporting by Alex Lawler and Olesya Astakhova. Editing by David Evans and Louise Heavens.
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Executives, trade and labor associations comment on Trump's reciprocal duties
Donald Trump announced on Wednesday that he will impose a baseline 10% tariff on all imports into the United States, and he may increase duties on some of its biggest trading partners. This could lead to a trade conflict and upset the global economy. Countermeasures from trading partners could result in a dramatic increase in prices of everything, including bicycles and wine. Trump has already levied 25% on automobiles and auto parts. The latest responses from business executives, unions and trade associations. Companies ANTONIO BARAVALLE is the CEO of LAVAZZA We had planned to increase the local production (in the U.S.A.) by 100%. "We're ready to go... but there is another element to investigate, the duties for Brasil... If they put 10% on Brazil, then the duty (of 20%) is already half. The coffee maker produces about 50% of the amount it sells locally in the U.S. FERRARI The purchase contracts for Ferraris contain standard and clear clauses that allow the company to adjust the price in the event of a change in the market conditions before the vehicle is delivered. A Ferrari spokesperson confirmed that new tariffs would also be applied to Ferrari cars ordered in the past but not delivered to the U.S. MOTOFUMI SHITARA, CEO, YAMAHA MOTOR "Our exports will certainly be affected." We will have to raise prices or reduce costs if these tariffs are extended over time, even for vehicles. Once you turn the switch on, it is very hard to reverse. Each company will be nervous about making a decision. SHIPPING GROUP MERSK "We expect our customers to be more careful about their stock levels." We're likely going to see some air freight rush orders in the U.S. very soon, before the tariffs go into effect. We will also see an increase in the demand for bonded warehouses as customers want to delay clearing their goods until they have more certainty. GERRESHEIMER MAKES PACKAGING AND MEDICAL ELECTRICAL EQUIPMENT Tariffs are affecting mainly our exports to the U.S. from our factory in Mexico. Injection vials are one example. We will pass on these customs fees to our customers as an additional cost. We will be able, if necessary, to move our capacities if customs duties remain in place for a longer period of time. Our production network in the U.S. opens up business opportunities with pharmaceutical companies who are increasingly looking to source and produce locally in the U.S. MASSIMO BATTAINI is the CEO of CABLE MAKER Prysmian "The announcement seems to have had a positive effect on local production at first glance. The tariffs are only applied to the finished product, so there is no risk of U.S. producers being undercut by foreign competitors. We are the best-positioned to maintain our leadership with 30 factories in the U.S., and as the leader of the market." ANDERS VINDEGG HEAD OF MEDIA RELATIONS, ALUMINIUM HYDRO PRODUCER "We work actively from Norway as well as in Brussels, the EU to inform and work actively with organisations and other initiatives that we are a part of in order to leverage the importance Norwegian aluminium for Europe." We're using our network, and our people are on the ground working with the U.S. Administration to understand the effect of the tariffs. NOBUHIRO TORII, PRESIDENT OF SUNTORY "We will try to sell locally and produce... that's the key with tariffs." ASSOCIATIONS OF WORKERS AND PARTICIPANTS COPA-COGECA EU FARMING GROUPS The introduction of additional tariffs could disrupt global supply chains and drive up prices. It would also limit the market access of farmers and agricooperatives from both sides of Atlantic. This will have significant economic implications for the agricultural industry. "Copa & Cogeca urge EU and US Policymakers to exhaust all diplomatic efforts within the next few days." Both sides must be constructive in addressing grievances, without jeopardizing trade benefits. ANTHONY BRUN, HEAD OF FRENCH GROWERS ASSOCIATION (UGVC) "While one could have expected much higher tariffs, this risk remains and is associated with a possible conflict over bourbon whisky. Already, we face tariffs from China. Now, there is the U.S. and the consequences are going to be brutal for wine growers. ETHAN LANE SENIOR V.P. OF GOVERNMENT AFFILIATIONS, NATIONAL CATFARMERS BEEF ASSOCIATION "President Trump has taken action to remove numerous trade barriers which prevent overseas consumers from enjoying high quality, wholesome American Beef. NCBA will engage with the White House in order to optimize export opportunities and ensure fair treatment of America's beef producers worldwide. SIGRID de VRIES, DIRECTOR GENERAL, EUROPEAN MOBILE MANUFACTURERS ASSOCIATION "European automakers have committed to be active in the U.S. and make an important contribution to its economy. They account for about half a million auto-related jobs, will export over 750,000 cars to the U.S. by 2024 and actively invest in local communities in order to foster economic prosperity." "We urge both leaders to meet immediately to find a resolution to any issues that prevent free and fair trading between historical allies, and to allow the EU-US relations to flourish again." SWISS BUSINESS GROUP ECONOMISSE "Another escalation in the trade conflict is to be avoided. Swiss economic diplomacy and the Federal Council are urged to find quick solutions with the U.S. Government at the negotiation table. "From an economic perspective, the U.S. tariffs on Switzerland are not comprehensible - rather the opposite." DIRK JANDURA HEAD OF GERMANY EXPORTERS ASSOCIATION (BGA) "We'll have to pass on these tariffs as price increases and this will impact turnover in many instances." It is an economic dead end that will result in welfare losses on both sides of Atlantic. WOLFGANG NIEDERMARK EXECUTIVE COMMITTEE MEMBER GERMANY’S MAIN INDUSTRY ASSOCATION BDI The justification of this protectionist escalation has no rational basis. It is a threat to our export-oriented businesses and threatens prosperity, stability and jobs in the United States and abroad. The EU should now coordinate its response and strengthen its alliances, with other major trading partners. It is important to coordinate your response in order to deal with the changing flows of international trade. Reporting by Juby B. Babu from Mexico City; Vallari Srivastava in San Francisco; Nick Brown in New York; Caroline Humer and Abhirup Roy at Bengaluru. Editing by Sayantani Ghosh.
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Pakistan cuts power prices as a sign of stabilising economy
Shehbaz sharif, the Prime Minister, announced on Thursday that Pakistan would cut electricity prices for industrial and domestic users. This is a sign that the economy has recovered from its near-default. The International Monetary Fund intervened to stabilize the Asian country's financial situation with a standby agreement in 2023, and then a bailout of $7 billion last year. Sharif said that it was difficult to convince the IMF to accept a reduction in electricity tariffs, despite the fiscal consolidation mandated by the bailout. He said at an event in Islamabad that he couldn't describe the efforts that were involved. The government reforms to the power sector, he added, made the reductions possible. He also said that Pakistan will use the money it saves from the lower oil prices in the world to invest in the power sector. After several price increases over the last couple of years, Pakistanis will feel relieved by lower power prices. Sharif announced that the tariff would be reduced by 7.41 rupees (US$0.0264) on average per kilowatt hour for domestic users and by 7.59 rupees (US$0.0264) on average per kilowatt hour for industrial users to an average of 40.60 rupees. Pakistan's $350-billion economy has struggled since May 2023 when the inflation rate reached a record high of 38.50%. Growth is now negative, while reserves are down to a few weeks worth of controlled imports and interest rates have risen to 22.2%. Sharif stated that "we have succeeded in bringing the inflation to single-digits", adding that the almost 10-percentage point reduction in the main interest rate of the country in the past year will help businesses grow.
Trump's plan to increase domestic mineral production is resisted by an adviser
Unknown advisor to the U.S. International Development Finance Corporation is opposing a plan of President Donald Trump that would use it to increase domestic investment in mining production.
Why it's Important:
DFC is one of the world's leading sources of development financing. It has more than 50 billion dollars in portfolios of projects ranging from critical infrastructure to food, energy and health. Over 70% of this funding goes to low- and lower middle-income countries.
Experts in development are worried that Trump's executive order of March 20, which invoked emergency power to boost domestic production of critical minerals and named DFC a key funding source, could lead the agency to pull back from its international commitments.
KEY QUOTES
"DFC is focused on countries with low and lower middle-income levels." The DFC does not currently have the authority for investing in the U.S. This could change but would cause pushback from the DFC's most ardent supporters, said Robert Mosbacher who was the former head of Overseas Private Investment Corporation (OPIC) under President George W. Bush.
"I am optimistic that the reauthorisation will try to strike a balanced and keep the agency focused primarily on development, while increasing its focus on foreign policy goals."
CONTEXT:
The order follows Trump's decision to cut $76 billion from project funding at the U.S. Agency for International Development. Development analysts and nongovernmental organisations are concerned that the DFC mandate will also be altered.
Development experts say that Trump's choice of Ben Black as DFC's CEO, the son of Apollo Global Management's co-founder Leon Black, has not done much to ease concerns. Black wrote a blog in which he disparaged DFC's support of "virtue signalling" green projects, and argued in favor of Greenland's natural resources.
WHAT'S NEXT:
Mosbacher stated that once appointed, Black would have the ability to contribute to an ongoing review of DFC’s governing rules. The review is expected to be completed by early October. However, any radical policy changes may be moderated by the bipartisan support the current mandate enjoys in both chambers.
Last week, it was reported that DFC would be in line to handle a crucial minerals fund Trump proposed as part of the ceasefire talks between Ukraine & Russia. (Reporting and editing by Tomaszjanowski)
(source: Reuters)