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White House rejects Chamber's call for tariff relief for small businesses
The White House rejected an attempt on Thursday to provide immediate relief to small U.S. businesses from tariffs. It said that these companies would benefit from the tax cuts Congress wants to extend. In a letter sent to the administration of U.S. president Donald Trump, the U.S. Chamber of Commerce asked that small businesses be exempted from tariffs, if they could show it would hurt U.S. workers, and if their products cannot be produced in America or are not easily available. When asked by reporters about the request, Stephen Miller, deputy chief of staff at the White House for policy and administration, said: "The relief will come in the form the largest tax cuts in American history." Miller responded that tax relief is a "yes" for small businesses. Trump's Republican colleagues in Congress want to pass legislation that extends the U.S. president Donald Trump's tax plan for 2017, which expires this year. The Republicans in Congress, who hold a 220-213 majority in the House, and a 53 to 47 advantage in the Senate have stated that they intend to pass their tax cut bill by the 4th of July, despite their small majorities. The Chamber of Commerce said that it supported Trump's goal to eliminate unfair trade, but small businesses were being hurt by increased costs and interruptions in supply chains during ongoing tariff negotiations. It called on the administration to work together to "avoid a recession". In a separate press release, Suzanne Clark, President and CEO of the Business Lobbying Group said that "These deals are time-consuming and many businesses cannot afford to wait for negotiations to proceed." "They need immediate relief." She also added that the Chamber is seeking to exclude businesses of any size where U.S. job security was threatened. Clark stated that certain products simply cannot be manufactured in the United States. Clark said that raising the price of those products would only hurt families who are struggling to pay bills. (Reporting and editing by Chizu Nomiyama, Franklin Paul and Chizu Heavey. Additional reporting by Doina Chiacu.
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Wall Street jumps with tech boost; yen falls on BOJ gloom
Gold prices fell and Wall Street stocks rose on Thursday, as investors' risk appetite was boosted by solid earnings reports from the big tech companies. The Nasdaq, which is dominated by tech companies, rose 2.4% on the back of positive quarterly results. The S&P 500, the bellwether index of the stock market, is on course to extend its winning streak to eight consecutive sessions - its longest since August 2024. Dollar rose as yen fell after Bank of Japan cut growth forecasts because of uncertainty surrounding U.S. Tariff policy. May Day holiday has caused a drop in trading across Asia and Europe. After the steep tariffs announced by U.S. president Donald Trump on April 2, which shook world markets throughout last month, there were no major announcements about trade negotiations. Oliver Pursche is a senior vice president with Wealthspire Advisors in New York. He said: "I think that the news about tariff negotiations is going to be similar to what we heard over the past few days. That is, lots of deals have been done but they are waiting for the other party to sign off, which to me seems to indicate there has not been a deal made." They may be working on agreements, but until they put ink on paper, there is no agreement. The first quarter earnings season has now reached its midpoint, with 375 S&P 500 companies having already reported. LSEG reports that 74% of those companies have beaten analysts' expectations. Apple Inc. and Amazon.com will report their quarterly earnings after the closing bell. They are the fifth and six members of the "magnificent Seven" to do so. Nvidia is the last member to be expected to announce its first quarter earnings on May 28, which will leave the chipmaker. The economic situation in the United States is still in a contraction. Meanwhile, jobless claims have increased much more than analysts had expected. The Dow Jones Industrial Average increased 311.33 points or 0.77% to 40,981.02, while the S&P 500 rose 76.53 or 1.37% to 5,645.25, and the Nasdaq composite was up 413.81 or 2.36% to 17,860.15. HOLIDAY MAY DAY May Day is a holiday that many markets around the world, including in Europe, are closed. The MSCI index of global stocks rose by 5.63 points or 0.68% to 839.17. The pan-European STOXX 600 Index was flat while Europe's FTSEurofirst 300 Index fell by 1.24 points or 0.06%. Emerging market stocks dropped 2.91 points or 0.26% to 1,109.93. MSCI's broadest Asia-Pacific share index outside Japan fell 0.19% to 579.92. Japan's Nikkei climbed 406.92 points or 1.13% to 36,452.30. After the BoJ downgraded its outlook, the greenback gained after the BoJ reduced the prospects for future rate increases. The dollar index (which measures the greenback in relation to a basket including the yen, the euro and others) rose by 0.55%, reaching 100.22. However, the euro fell 0.41%, at $1.127. The dollar gained 1.6% against the Japanese yen to reach 145.36. The yield on the benchmark 10-year U.S. notes increased 2.3 basis point to 4,198% from 4,175% at late Wednesday. The 30-year bond rate increased by 4.5 basis points from 4.68% to 4.7248%. The yield on the 2-year bond, which is usually in line with expectations of interest rates for the Federal Reserve (Fed), rose by 1.8 basis points, to 3.639% from 3.621% at late Wednesday. The oil price has reversed its earlier decline on the back of fading fears about a softening in demand. U.S. crude climbed 0.93%, to $58.77 per barrel. Brent rose to $61.52 a barrel, up by 0.75% for the day. The gold price continued to fall, reaching a new two-week-low as investors shifted away from the metal of safety. Spot gold dropped 1.94% to $3.224.06 per ounce. U.S. Gold Futures fell 2.43% to an ounce of $3,224.70.
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EIA delays US Natural Gas Weekly Storage Report
In a tweet posted on X, the U.S. Energy Information Administration announced that it would delay its weekly report on natural gas storage in the United States. The report is usually released at 10:30 am EDT (1430 GMT), on Thursdays. The EIA announced on X, "We will post the release as quickly as possible." We also said that we would give an hour's notice before publication. The EIA officials were not able to immediately explain why the report on gas was delayed. Three sources have confirmed that the EIA (the U.S. Government's Energy Statistics arm) is about to lose more than 100 employees following the latest round of resignations offered by President Donald Trump. This puts at risk the world's most closely followed energy reports, they said. EIA releases weekly, monthly, and annual data about oil and gas production, crude and fuel inventory, and price forecasts. These are all used as indicators by energy companies and traders to determine supply and demand. These reports can have a significant impact on global oil prices. Analysts estimated that utilities pumped 107 billion cubic foot (bcf), or 107 billion cubic meters, of gas during the week ending April 25. This compares to an increase of 64 Bcf in the same week of last year, and a 5-year average of 58 Bcf at this time of the year. The build-up of gas would be near normal for this time of the year if the build-up is correct. (Reporting and editing by Ros Russell. Edited by Scott DiSavino)
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QatarEnergy talks LNG long-term supply agreement with Japan
Five trading and industry insiders have confirmed that QatarEnergy is in negotiations with Japanese companies for a long term deal to supply LNG through its North Field Expansion Project. Four sources confirmed that under the agreement, Qatar would supply gas to a group of Japanese importers. A volume of 3 million metric tonnes per year would be divided between the consortium. If the agreement is reached, it will help confirm Doha’s decades-old dominant position on the Japanese market as the competition from the United States, and neighbouring Gulf suppliers United Arab Emirates and Oman that offer more flexible contractual terms, intensifies. This would be the first LNG contract signed since October, when it was reported that Qatari buyers in Japan and South Korea were having difficulty agreeing to LNG contracts due to competition. Four sources who refused to be named because they were not authorised by the media to speak publicly said that the buyers in QatarEnergy's talks include JERA, Japan’s largest power generation company, and trading house Mitsui & Co. QatarEnergy didn't immediately respond to an inquiry for comment. JERA, on the other hand, said that it was in talks with several suppliers about LNG procurement. Qatar was acknowledged as an important LNG supplier but JERA refused to disclose any specifics of their discussions. A JERA executive told a Monday earnings briefing that the company must diversify its supply sources. Asia-Oceania accounts for more that half of our sources of procurement. Naohiro Maisekawa, the head of the division for financial strategy and planning, stated that expanding the options to include regions such as North America and Middle East could be beneficial in terms of supply stability. Mitsui, when asked if it was in talks with QatarEnergy about a long-term LNG deal, said that the company has been in contact with several sellers to guarantee a stable LNG supply. However, they would not divulge specifics of any individual discussions. North Field Expansion According to Kpler, Qatar will export 79.54 millions metric tons LNG by 2024. Middle Eastern countries plan to increase their LNG production from the current 77 million tonnes per year at its North Field, up to 142 mtpa in 2030. This is an 85% increase from the 126 mtpa that was expected previously. Japan was the second largest LNG buyer in the world after China. Its trade data shows that it imported 65.89 millions tons of the fuel during the last year. Qatar was one of Japan's three largest LNG suppliers in the past decade, shipping more than 15-16 mtpa between 2012 and 2014. The increase was a result of Qatar's support for the acceleration of LNG exports following the Fukushima Nuclear Disaster, which began in 2011 after an earthquake and tsunami caused the disaster. As Japan's reactors slowly restarted, the volume of these exports has decreased. JERA chose to not renew its contract with Qatar, for 5.5 million tons per annum (mtpa), which expired in 2021. Kpler data shows that Qatar exported less than 3 million tonnes to Japan in the last year. In January, a senior JERA executive said that the company would increase its LNG purchase from the United States in order to meet the demand growth spurred on by data centres and AI. It also planned to speak to Middle East suppliers to help diversify the supplier base. Reporting by Marwa Rashed in London, Emily Chow and Yuka Obayashi, in Tokyo, and Maha El Dahan, in Dubai. Editing and rewriting by Nina Chestney, Barbara Lewis and Barbara Lewis.
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Kuwait cracksdown on cryptocurrency mining amid power crises
Kuwait has launched an offensive against cryptocurrency miners, which it believes are a major cause of the power crisis leading to blackouts. The authorities want to relieve pressure on the grid ahead of the hot summer. The Interior Ministry said that authorities launched a "widespread" security operation in the last week. It targeted homes used to mine cryptocurrency, which it called illegal. The ministry stated that crypto mining activities are "an unlawful exploitation" of electrical power and can cause outages in residential, commercial, and service areas. This poses a direct danger to the public's safety. Kuwait has banned cryptocurrency mining but no specific laws. Kuwait, an OPEC country, is facing a severe energy crisis due to population growth, urbanization, rising temperatures, and delays in maintenance. The government is urging residents to not waste electricity in order to avoid straining the electrical grid. A source from the electricity ministry said that cryptocurrency mining is a major factor in the power crisis but it's not the only one. The mining of crypto requires a large amount of computing power. This has led authorities in Kosovo and Russia to reduce its use, to avoid electricity shortages. Miners often base themselves in places where electricity is cheaper, and where it's easier to cool servers. Researchers from the University of Cambridge estimated in 2022 that Kuwait was responsible for only 0.05% of bitcoin mining around the world. There is no reliable data on the power consumption of crypto miners in Kuwait. However, Alex de Vries Gao, the founder of Digiconomist - a research project that tracks crypto's energy usage - said, "It only takes a small share of the entire bitcoin mining network to make a significant impact on Kuwait's relatively low total electricity consumption." Kuwait's crackdown targeted homes in Al-Wafrah. The electricity ministry had previously stated that around 100 homes were being used for mining. Some of these homes consumed up to 20x the normal amount of electricity. The electricity ministry announced on Saturday that energy consumption in Al-Wafrah dropped by 55% after last week's operation. "They exploited their situation because they saw government subsidies and the lack of oversight. They also saw that there were no laws," said Saud al-Zaid. He was a former executive board member at the Communications and Information Technology Regulatory Authority of Kuwait. Kuwait's central banks has warned investors against investing in cryptocurrency. Kuwait's approach is different from that of its neighbours who have embraced this industry. The son of U.S. president Donald Trump, Eric Trump, is among the attendees at a crypto event in Dubai. (Reporting and Additional Reporting by Elizabeth Howcroft, Writing by Yousef SABA; Editing by Tommy Reggiori Wilkes & Frey Whitworth).
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Utility Pinnacle West suffers a quarterly loss due to higher costs
Pinnacle West Capital, a U.S. utility company, reported a loss for the first quarter of this year due to higher interest and operating costs. New power plants and other intangible assets have increased the operating and maintenance costs of Phoenix-based company. Interest rates that are higher for longer hurt utilities as well, since they need more capital to build and maintain grids. The company reported that its total operating costs rose to $975.1 millions during the first reporting quarter from $884.9 during the same period last year. The total cost of interest rose to $94.8 millions during the third quarter from $86.6million a year earlier. The shares of the company are down slightly in morning trading. Utility said, however, that the number of retail clients grew by 2.3% in Arizona. Electricity demand there is increasing, largely due to multi-billion dollar semiconductor plants that are coming online. The company stated in February that Pinnacle West, whose main subsidiary serves 1.4 millions customers in Arizona, plans to add 9,805 MW of renewable energy, battery storage, and natural gas from 2025 to 2028. Over 90% is expected to be carbon free. The company posted a loss of $4.6m, or 4c per share, in the third quarter that ended on March 31. This compares to a profit of $16.9m, or 15c per share, a year ago. Reporting by Arunima Kumra and Khusbu Jeena in Bengaluru, Editing by Sahal Muhammad
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US construction spending drops in March
U.S. construction expenditures unexpectedly declined in March, amid large declines in both private and public outlays. Census Bureau of the Commerce Department reported on Thursday that construction expenditures dropped by 0.5% following a 0.6% rise in February, which was slightly revised downward. The economists surveyed by predicted that construction spending would increase 0.2%, after an earlier reported 0.7% jump. The construction spending in March increased by 2.8% compared to the same month last year. The amount spent on private construction fell by 0.6%. Residential construction investment fell by 0.4%. However, new single-family housing projects saw a 0.1% increase in spending. Homebuilding is being hampered by high mortgage rates and import tariffs. Last month, the National Association of Homebuilders calculated that tariffs on Chinese imports had been increased to 145%, and a 25% tax on foreign steel, aluminum, and other metals. This led to an increase in construction costs of $10,900 for each home. In March, the expenditures on multi-family housing units remained unchanged. Investments in non-residential private structures such as offices and factories fell by 0.8%. The spending on public construction projects decreased by 0.2%. Spending by state and local governments also decreased 0.2% while federal government expenditures fell 0.4%. Lucia Mutikani, Andrea Ricci and Andrea Ricci (Reporting)
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US: Minerals deal will strengthen Trump's position in negotiations with Russia
Kyiv, Washington and other Ukrainian officials hailed the deal that gives the United States preferential rights to access new Ukrainian minerals on Thursday as a major milestone. A top U.S. government official stated that this would give President Donald Trump a better basis to negotiate with Russia. The Kremlin did not comment on the agreement reached Wednesday, but former Russian President Dmitry Medvedev claimed that Trump "broke the Kyiv regime", because Ukraine will have to pay U.S. military assistance with its mineral resources. The agreement, signed in Washington, and heavily promoted by Trump establishes a fund of joint investments for Ukraine's rebuilding as the U.S. President tries to achieve a peaceful settlement in Russia's conflict in Ukraine. This agreement gives the U.S. priority access to any new Ukrainian mineral projects. The agreement is crucial to Ukraine's efforts in repairing its ties with Trump, the White House and other foreign governments, which were strained after Trump took office. However, the Ukrainian parliament has yet to consider it. In an interview with Fox Business Network, U.S. Treasury Sec. Scott Bessent said that the deal would show "the Russian leadership" that there was no daylight between us and the Ukrainians. He said: "I think that this is an even stronger signal to the Russian leadership and gives President Trump the power to negotiate with Russia now on a more solid basis." His remarks seemed to send a message to Russia that Washington is still aligned to Kyiv, despite questions about its commitment to Kyiv since Trump's arrival at the White House in early January, which upended U.S. diplomatic relations. Kyiv says that the U.S. has increased its efforts to achieve a peace agreement, and since then Russia has intensified its attacks against Ukraine. Washington has expressed its frustration at the inability of Moscow and Kyiv, to reach an agreement on terms. Trump has also shown signs of dissatisfaction with Russian President Vladimir Putin because he has not moved faster toward peace. Trump said Tuesday that he believes Putin wants to end the war. He added: "If I weren't there, I believe he would want to take the entire country over." MILESTONE Andrii Syhiba, Ukrainian foreign minister, said that the deal was "an important milestone (in) Ukraine-U.S. Strategic partnership aimed to strengthen Ukraine's economy, security and stability." Kaja Kallas is the top diplomat of the European Union. He briefed her on the agreement. In response to Trump's criticism of the EU member states' contribution to Ukraine war effort, they have pledged to increase their defence spending. Medvedev, a former senior Russian security official, claimed that Ukraine was forced to sign the agreement. He wrote on Telegram that "Trump has broken Kyiv's regime to the extent where they will be forced to pay U.S. assistance with mineral resources." "Now (Ukrainians), they will have to buy military supplies using the wealth of a country that is disappearing." The international debt of Ukraine rose by more than two cents after the signing the mineral deal. Financial analysts said that the agreement had better terms than originally expected for Ukraine. The Ukraine is rich with natural resources, including rare earths, which are used for consumer electronics, electric cars, and military applications. China is the dominant player in rare-earth metal mining, and is engaged in a fierce trade war with America after Trump's tariff increases. Ukraine has also large reserves of uranium, iron and natural gas. Yulia Shvyrydenko (Ukrainian First Deputy Premier Minister), who signed the deal, stated that Ukraine had no debt obligations towards the United States as a result of the agreement. This was a major point in the long negotiations between the countries. She said that the deal was also in line with Ukraine's Constitution and its campaign to join Europe, which were key elements of Ukraine's negotiation position. Although the agreement was initially aimed at ensuring Ukraine's security, it did not provide any concrete guarantees. Denys Schmyhal, the Prime Minister, was to deliver it to various parliamentary factions on Thursday evening. Some lawmakers also want him to make it available at a Friday session of parliament. It is unlikely that a vote will be held on the issue any time soon. Some members of the parliament have welcomed this deal. Others have criticized some of its terms, and complained that the chamber had not been properly consulted.
TC Energy's quarter profit misses due to power segment weakness
Canadian pipeline operator TC energy missed analyst's expectations for the first-quarter profits on Thursday due to weakness in its power solutions and natural gas operations, while higher interest costs offset gains in their natural gas operations.
Shares of the company listed in the United States were down by 4%.
As energy demand grows in North America, the demand for electricity that is renewable and emits less pollution will also increase. TC Energy invested in ten power-generation plants with a total generating capacity of 4,600 megawatts.
The company's core profit in its power and energy solutions division fell by 30%, to C$224m, during the first quarter. This was due to a Bruce Power nuclear reactor being taken offline for maintenance.
Bruce Power, a company owned in part by TC Energy and supplying 30% of Ontario's power, is owned by TC Energy.
Despite its results, TC Energy is still bullish about the growth of power demand and has announced new projects for natural gas and nuclear energy generation worth C$2.4billion.
The company, who last year spun off their oil pipeline business in order to pursue a strategy focused on natural gas, forecasts that the demand for natural gas in North America will grow by 40 billion cubic feet per day during the next decade.
According to data compiled and analyzed by LSEG, Calgary-based TC Energy's adjusted earnings per share were C$0.95 for the three months ending March 31 compared to analysts' expectations of C$0.97. (Reporting by Mrinalika Roy in Bengaluru; Editing by Shounak Dasgupta)
(source: Reuters)