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Paulo Castellari named as the next CEO of French mining company Eramet
Paulo Castellari, the next CEO of French mining company Eramet, was announced as its nominee on Thursday after Christel Bories decided to step down. Eramet announced that Castellari would assume the CEO role on May 27 following a vote during the annual shareholders meeting. Bories will continue to be the Group's chairwoman. Castellari, born in 1970, is a dual Brazilian-Italian citizen with over 30 years of experience in the mining and metals industries, as well as in fertilizers and energy in South and North America as well as Europe and Africa. He worked for Anglo American from 2003 until 2015, then was named CFO and Deputy CEO of CEMIG in Brazil, before joining EGA, an aluminum producer, as the CEO of Guinea Alumina Corporation. Paulo Castellari is the CEO of Appian Capital Advisory's Brazilian branch, a private equity group that focuses on mining. Eramet stated last month that Bories will give up her chief executive role by May, while remaining as chairwoman. Bories has been CEO of Eramet since 2017. He has led a strategic shift towards minerals for electric vehicle batteries. This includes the development of a lithium mine, which began production in Argentina at the end last year. (Reporting and editing by GV de Clercq, Nick Zieminski and Gus Trompiz)
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After inflation data, stocks rise and US Treasury yields fall
The global stock index rose on Thursday, the first time in the last three sessions. Meanwhile, U.S. Treasury yields fell as a reading of inflation fueled hope that the Federal Reserve’s preferred measure of price might be lower than expected. The Labor Department announced that the Producer Price Index (PPI) was for Final demand rose After a downwardly revised 0.5% increase in December, the 0.4% rise last month surpassed the economists' estimate for a 0.3% gain. The consumer price index (CPI) for Wednesday showed the largest increase in almost 1-1/2 years. Fed Chair Jerome Powell has said that the PPI includes components that make up the personal consumption expenditures. On Wednesday The PCE, the Fed's preferred inflation target measure, was softened and added to the hope that the reading could be lower than expected. It looks like core PCE is going to come out around 0.3%. That's still high compared to January last year when it was only 0.5%. If the forecast is accurate, core PCE will fall from 2.8% down to 2.6% over the course of a year, said Chris Diaz. Diaz is co-head fixed income at Brown Advisory, Chicago. There will be enough downward pressure on the housing component and wages to continue to bring down inflation. The Nasdaq was up over 1% on Wall Street after the release of the US inflation data. All S&P sectors rose, but materials led the way. MGM Resorts, which had just opened its casino, saw a jump of nearly 17% and Tesla rose by about 5%. operator reported Better than expected quarterly earnings The Dow Jones Industrial Average rose by 343.48 points or 0.77% to 44,712.04, while the S&P 500 gained 52.00 points or 0.86% to 6,103.96, and the Nasdaq Composite increased by 235.87 or 1.20% to 19,885.82. The MSCI index of global stocks rose by 8.61 points or 0.99% to 881.39, and is on course for its largest daily percentage gain since Jan 15. The pan-European STOXX 600 Index rose 1.09% in a fourth consecutive session, closing at a record. Nestle and Siemens gained after their quarterly results. Also, there are hopes that the war between Russia, Ukraine and Ukraine will be ended through talks. U.S. President Donald Trump says On Wednesday, Trump said that both Russian president Vladimir Putin and Ukrainian president Volodymyr Zelenskiy expressed their desire for peace during separate phone conversations with him. He also ordered top U.S. government officials to start talks about ending the war. The yield on the benchmark 10-year U.S. notes fell 11.3 basis points, to 4.521%. This is on course for its largest daily decline in a whole month. In addition to the PPI data the U.S. initial unemployment claims dropped 7,000 points, bringing them down to 213,000 seasonally adjusted, a level that is slightly lower than the 215,000 mark and indicates the job market is still on stable ground. According to CME, the market has not priced in a probability of greater than 50% of a Fed rate cut of at least 25% until September. FedWatch Tool The dollar index (which measures the greenback versus a basket currencies) fell 0.52% at 107.35, and was on course for its largest one-day percentage decline since January 24. At $1.0432, the euro rose 0.48%. Boris, a Croatian politician Vujcic The European Central Bank may cut rates three times more this year, even if the U.S. counterpart moves slower. However, policy easing will be based on a rapid drop in inflation. The dollar fell 0.92% against the Japanese yen to 152.99. The pound rose 0.68%, to $1.2527. Official figures revealed that the British economy grew unexpectedly by 0.1% during the last quarter of the year. This was higher than the 0.1% contraction expected. However, longer-term problems remain. Oil prices are rising. The market is slightly lower and has recovered from its earlier declines. This was due to the downward pressure of hopes for peace negotiations between Russia, Ukraine and other countries being offset by optimism about a temporary pause in U.S. tariffs. U.S. crude fell 0.11%, to $71.29 per barrel. Brent dropped 0.21%, to $75.02 a barrel.
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Ecuador president names new finance minister, confirms interim oil minister
Daniel Noboa has confirmed Ines Manzano's position as interim Energy and Oil Minister and named Luis Alberto Jaramillo to the post of finance minister. After Luisa Gonzalez's performance on Thursday and late Wednesday, the changes were made. Unexpectedly well In the first round of Sunday's presidential election, Noboa is locked in a tight race to be re-elected in April. Jaramillo, who has served as Minister of Production since 2011, will be replaced by Carlos Zaldumbide. In December, the International Monetary Fund announced that its Executive Board had completed the first review. Extended Fund Facility For Ecuador, this allows for an immediate payment of approximately $500 million. In a letter published on social media, the outgoing finance minister Juan Carlos Vega announced his resignation. He said that during his tenure, government revenues had been boosted and debts had been paid. Manzano succeeded her predecessor as Energy Minister during a widespread, planned power cuts Last October. Noboa deployed military personnel on the streets and inside prisons in an effort to improve the dire security situation that was blamed on criminal gangs. (Reporting and writing by Alexandra Valencia, Editing by Leslie Adler.)
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Trump announces a roadmap for reciprocal tariffs against US allies and competitors
The White House announced that President Donald Trump will unveil a plan on Thursday to impose reciprocal tariffs against every country that imposes duties on U.S. imported goods. This is his latest trade salvo aimed at American allies and enemies, and the White House claims that it will improve economic and national security. Trump said to reporters in the Oval Office that he wanted a level playing ground when discussing the measures. A White House official said that tariffs would not be implemented on Thursday, but they could start within weeks. Trump's team of trade and economic experts is studying bilateral trade and tariff relationships. Howard Lutnick - Trump's choice for Commerce Secretary - said that the administration will address each country individually. He said that the study on the topic would be finished by April 1. Trump, who ran on a promise to lower consumer prices, has said that the price could rise in the near future as a result. "Tariffs, I think, are fantastic," he said. A White House official who spoke with reporters before Trump's Oval Office event said that the administration will examine the "most egregious" problems first, such as countries with the largest trade surpluses or highest tariff rates. He said that Trump's reciprocal duties would be equal to the higher duty rates charged in other countries. The tariffs would also aim to counter non-tariff barriers, such as heavy regulations, value added taxes, government subsidy and exchange rate policies, which can create barriers for U.S. goods to reach foreign markets. This effort will also include negotiations with certain countries in order to lower these barriers. The announcement seemed to be intended at least partly to start discussions with other countries. The official stated that Trump would lower tariffs for other countries if they lowered theirs. "The president will lower tariffs for countries who want to do so. Let's also acknowledge that higher tariffs are not always the main problem. China, Japan and South Korea are among the targets. He said that the tariffs would not be a "one-size fits all" solution, but instead more tailored levies. However, he didn't rule out a global flat tariff. The official stated that the lack of reciprocal tariffs in the U.S. had contributed to an enormous and persistent U.S. Trade deficit. Narendra Modi is the Indian Prime Minister, and he was due to arrive in New York at 4 pm (2100 GMT). He oversees a country that has the highest tariffs against U.S. imports of any other major trading partner. Trump admitted as much on Friday. The Republican President's latest round rattling of tariffs has increased fears of an expanding global trade war, and threatens to accelerate U.S. inflation. Trump's advisers on trade were finalizing plans for the reciprocal duties that the U.S. President has promised to impose against every country which charges duty on U.S. imported goods. Trump, who assumed office on January 20, has already announced tariffs for all steel and aluminium imports starting on March 12. He also imposed 10% tariffs to goods coming from China and put a hold of 30 days on tariffs imposed on goods coming from Canada and Mexico. Trump said Monday that he is also considering separate tariffs for cars, semiconductors, and pharmaceuticals. He said on Thursday that car tariffs were coming soon. Experts in trade say that structuring the reciprocal duties Trump wants is a big challenge for his team. This may explain why Trump's latest duties weren't announced earlier this week. Damon Pike is a principal and trade specialist with BDO International's U.S. division. He said that the reciprocal tariffs Trump envisaged would be a massive undertaking given that the 186 member countries of the World Customs Organization have different duty rates. "At an international level, you'll find 5,000 different product subheadings at the 6-digit level. That's 5,000 times 186 countries. "It's like an artificial intelligence project," said he. Experts believe Trump could use several statutes. These include Section 122 of Trade Act of 1974 which only allows a maximum flat rate of 15% for six-months or Section 338 of Tariff Act of 1929, which gives authority to act on trade discrimination which disadvantages U.S. Commerce, but which has never been used. Trump could also use the International Emergency Economic Powers Act to justify tariffs on China, and those pending against Canada and Mexico. Officials at the White House said this measure, as well as others, could be used. Pike added that, without IEEPA's help, it would take some sort of agency action before trade remedies could be imposed. "But everything seems to move quickly," he said.
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Brooke Rollins confirmed by the US Senate to be USDA's new director
The U.S. Senate voted on Thursday to confirm Brooke Rollins as the new head of the U.S. Department of Agriculture. She is a long-time ally of Donald Trump, a former White House advisor, and skeptic of climate change. Rollins is set to lead an agency of 100,000 employees, which oversees the farm programs, school meals, and food benefits. Rollins' appointment coincides with a period of low farm incomes, possible cuts to domestic food assistance, and an aggressive campaign by Elon Musk to reduce federal employees. After the Agriculture Committee heard Rollins nomination on January 23, and unanimously advanced her on February 3, the Senate confirmed Rollins by a vote of 72 to 28. Rollins was the leader of a conservative Texas organization that was backed by oil companies for 15 years. The group published reports during her tenure criticizing ethanol subsidies and farm subsidies. Rollins stated that the reports are decades old and do not reflect her current policies. She also said she supports ethanol. In a press release, Brian Jennings, CEO of the American Coalition for Ethanol said that his group is looking forward to working together with Rollins in order to finalize the 45Z tax credit for clean fuels and expand biofuel infrastructure. Amy Klobuchar, ranking member of the Agriculture Committee, asked Rollins if she believed climate change was a threat for U.S. ranchers and farmers. According to a copy her answers, she replied: "We know that climate change occurs throughout the year. However, the causes and solutions are still not well understood." In statements, both House Agriculture Committee Chairman Glenn "GT' Thompson and ranking Member Angie Craig said that Rollins assumed the role during a crucial time for agriculture. They looked forward to collaborating. Rollins served as acting director of White House Domestic Policy Council during Trump's first presidency, and later led the America First Policy Institute - a policy group aligned with Trump. The Trump administration has frozen most foreign aid, including farm grants and loans. This has caused work to stop at agricultural research laboratories and prevented some farmers from receiving government payments. (Reporting and editing by Franklin Paul, Nia Williams, and Leah Douglas)
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Southern California Edison gear will ignite more fires than in previous years by 2024
In 2024, SCE equipment will ignite nearly 60% more fires No cause yet determined for the Eaton Canyon fire that SCE is being sued for SCE partially blames the weather for increasing fire ignitions Tim McLaughlin Southern California Edison equipment caused nearly 60% more fires than the previous year in 2024. These were mostly small fires that were quickly put out as the utility fought to prevent disaster in the months before the Los Angeles wildfires. SCE disclosed in its quarterly report to regulators this month that the escalation in fire ignitions on their territory preceded the multiple wildfires which devastated Los Angeles' metropolitan area at the beginning of the year. SCE, an Edison International unit, is facing multiple lawsuits that blame its equipment for the Eaton Canyon fire, one of California's major wildfires. The cause of the fire has not been officially determined. SCE said that it did not know the cause of the fire. SCE's reports on ignition incidents reveal that the number of incidents will increase throughout 2024. This is especially true in districts with a high fire risk. SCE reported that 135 fires ignited on its territory in 2024. This is up from 86 events in 2023. The data SCE released this month shows a significant increase. SCE reported 135 fire ignition events on its territory in 2024. This is up from 86 in 2023, according to the data released this month. SCE stated that low humidity, dry vegetation, and high winds are among the factors which will increase fire ignition in 2024. David Eisenhauer, SCE's spokesperson, said: "We are worried when we see all three." Weather was one of the factors that were beyond the utility's control. According to SCE reports, fire ignition events are typically caused by equipment failures and wire-to-wire contacts, lightning strikes, and contact between wires and dried-out vegetation or balloons. SCE data revealed that, on average, over the last decade, SCE equipment has caused 120 fires per year in its territory. The California Public Utility Commission must be notified when a fire is caused by their equipment and spreads over one meter. The fires usually are small, and they can be extinguished without causing any serious damage. The Eaton Canyon Fire scorched 14,000 acres. According to Paul Zimbardo, an analyst at Jefferies, the damage caused by this fire will cost approximately $22 billion - before discounts for settlements. According to proxy statements filed at the U.S. Securities and Exchange Commission, Edison International's senior executives are rewarded for their performance based on a reduction in fire ignition events. Pedro Pizarro, the CEO of EIX, received a cash bonus worth $1.85million in 2023 because fewer fires were ignited. SCE, a company that is battling a severe drought in California and increasing power demand, is replacing and upgrading transmission lines, towers, and other equipment. According to SCE's testimony before California Public Utility Commission, it must catch up because infrastructure failure rates are increasing as equipment becomes outdated. SCE stated in CPUC filings that "the combination of age and obsolescence and limited designs that don't meet current standards lead to a greater probability of safety incidents, outages and longer outages when these do occur." SCE, for example, cited over 1,000 incidents of downed wires in 2022 and 43 explosions related to underground equipment. SCE admitted in a letter sent to the CPUC at the beginning of the month that the Los Angeles Fire Department believes the equipment used by the utility was responsible for the Hurst Fire which ravaged about 800 acres last January. Officials from the fire department said that it appeared that the fire started near a SCE tower that held high-voltage transmission cables that had fallen to earth. (Editing by David Gregorio).
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Morocco's livestock is suffering from consecutive droughts, says Agriculture Minister
According to Agriculture Minister Ahmed El Bouari, the number of cattle and sheep in Morocco has decreased by 38% since the last census was conducted nine years ago. This is due to successive droughts. Six years of droughts in Morocco have caused massive job losses and forced the country to accelerate its desalination plan. El Bouari, a reporter, told reporters that rainfall this year was 53% less than the average for the past 30 years. He said that there was not enough pasture to feed livestock, and consequently the meat production dropped. This led to a rise in imports of beef and red meat. Morocco's budget for 2025 includes a suspension of import duties and the value-added tax on cattle, camels, sheep, and lambs, as well as red beef, to maintain prices in the domestic market. He said that so far in this year, Morocco imported 124,000 sheep and 21,000 cattle, as well as 704 tons red meat. El Bouari reported that the dams of Doukala, Souss Massa and other key farming areas were only 2% and 15% filled respectively. El Bouari said that the national dam filling percentage had fallen to 26%, as drinking water for cities was given priority over farming. He said that the planted area for soft wheat, barley, and durum was up to 2.6 million ha, from 2.4 millions hectares in 2012. El Bouari stated that the wheat production depends "on the evolution in rainfall until the end of march". Morocco's soft wheat, barley, and durum production dropped by 43% last year due to drought. (Reporting and editing by Christina Fincher.)
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Duke Energy increases five-year capital expenditure plan to increase power supply
Duke Energy announced on Thursday that it had increased its five-year plan for capital expenditures to $83 billion. This represents a 13.7% increase, and is to meet the rising demand due to population growth in the U.S. Southeast, and expansion of data centres and advanced manufacturing. According to the U.S. Energy Information Administration, the U.S. energy demand will reach record levels in 2025 and 2020 due to new AI and cloud computing centers as well as the electrification and modernization of buildings and transport. The rapid population growth in the Southeast, where Duke is one of the largest electric utilities, is also driving electricity consumption. The company expects load growth to increase from 2027-2029 from 1.5%-2% to 3%-4.0% in the next two year. The majority of the additional $10 billion in Duke's capital budget will go towards expanding power generation. A large portion of this plan is intended to strengthen the utility's transmission and distribution lines. Brian Savoy, Duke's CFO, said: "We are seeing an increase in demand for electricity on our territory. We're building more everything." By the end of 2029, the company plans to have nearly five gigawatts of natural gas-powered power installed. Duke plans to issue approximately 40% of its capital plan increase with equity. Duke's electric segments and its gas segments reported a 5% increase in income for the fourth quarter ending December 31. This is compared to the same period last year. According to LSEG, despite interest costs, a high tax rate, and storm-related costs, the electricity provider reported a profit per share of $1.66 on an adjusted basis, which is in line with analyst estimates. Duke, North and South Carolina's largest utility, was hit by Hurricanes Debby and Milton, which destroyed miles of transmission and power lines, leaving thousands of Duke customers without electricity. Interest rates that are higher for longer can be a burden on utilities. They make it more expensive to invest in critical infrastructure, such as the electrical grid. The utility based in Charlotte, North Carolina, reported revenues of $7.36 billion. This was higher than the analysts' average estimate, which was $7.33 billion. This is largely because of higher residential sales, and higher rates. Duke's 2025 forecasted earnings ranged from $6.17 to $6.42 a share. The midpoint is just below the $6.33 estimate. Reporting by Seher dareen in Bengaluru, and Laila kearney in New York. Editing by Shailesh kuber and Aurora Ellis.
Internal reports reveal that Russian authorities are concerned about economic risks.
Documents prepared for a government internal discussion reveal that lower oil prices, budget restrictions and a rise of bad corporate debt is among the biggest economic risks Russia faces. A possible increase in U.S. oil production and OPEC output are also major concerns.
In public, President Vladimir Putin and other top officials have regularly praised the Russian economy for its resilience against international sanctions, while describing the inflation rate, which is stubbornly high, at 10%, to be its greatest challenge.
The reports that were reviewed by, and prepared by the central bank and the economy ministry for a session on February 4, with Prime Minister Mikhail Mishustin reveal broader concerns before the announcement made by U.S. president Donald Trump Wednesday of talks between Putin and Trump to end the Ukraine War.
The report of the Economy Ministry said that "a situation where the slowdown up to a technicial recession will occur much quicker than the slowdown in the inflation is much more probable."
The report warns that high interest rates, which are expected to remain at 21% by Friday's central bank meeting according to the polled analysts, are limiting lending and investment in Russia.
The report stated that "the lack of investment today is a lack in GDP growth (lower rates of growth) in two or three years."
The central bank and the ministry of economy both warned about the potential dangers of lower oil prices for the federal budget.
The report of the central bank highlighted that a U.S. production surge could lead to a drop in oil prices. It also noted that the free capacity of OPEC nations is near a record level and equal to Russian crude exports.
The central bank's assessment of the impact of lower oil costs on budget constraints suggests that they may be more difficult than initially thought.
Requests for comments were not answered by the central bank or the ministry of economy.
Costs Increased
In its report, the economy ministry warned that companies should be prepared for cost increases. This was a concern raised publicly by Alexander Novak, deputy prime minister in parliament on Tuesday.
The report estimates that the cumulative increase in costs for companies - including labour, taxes and tariffs, interest, and other expenses - from 2024 to 2025 will be 14.8 trillion rubles ($163.9 billion), which is about 45% the amount of private investments in fixed assets made last year.
It noted that the unfavourable external environment and decreasing domestic demand will make it more difficult for companies to pass costs on to consumers.
The report continued to say that this all adds to the risk for bad debts and weighs down on the financial stability of companies. The report warned that the growth in supply may not be enough to meet the slowing demand, especially in agriculture where price increases are expected in 2025.
OIL PRICE RISE RISKS TO BUDGET
After a slight contraction in 2022 due to a rise in government spending, military production, and oil, gas, and mineral exports, Russia's economic growth was stronger than expected. It resisted the sanctions imposed by the West over the invasion of Ukraine.
In recent months, Russia's economic growth has been hampered by a wide-spread labour shortage, the rouble's weakness and high interest rates.
Five sources familiar with the situation said that in January, Putin was privately growing more concerned about distortions of Russia's wartime economics.
Washington is well aware that oil prices are a major pressure point on Moscow. U.S. Secretary of Defense Pete Hegseth said Wednesday that lower energy prices will help Russia come to the negotiating table in the future of Ukraine.
The energy sector accounts for about one-third of Russia's revenue. Higher oil prices have helped Moscow to manage its deficit which grew by 1.7 trillion rubles in January, as Moscow ramped up spending until 2025.
The National Wealth Fund of Russia (NWF), which was created to finance Russia's persistent budget deficit, has now become the primary source of funding. The liquid assets of the fund have fallen by two thirds, from $112.7 to $37.5 billion.
The central bank stated in its report that the NWF was not designed to cover incomes falling over time.
(source: Reuters)