Latest News
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Budget proposal by the US House of Representatives targets climate and clean energy cuts
U.S. House lawmakers laid out plans on Sunday to phase out key clean energy tax credits, as well as slash billions in spending related to electric vehicles and renewable energy, fast-track gas exports and claw back unspent climate-related funds as part of the Republicans' attempt to pass a multi-trillion-dollar budget to carry out President Donald Trump's agenda. The House Committee on Energy and Commerce has drafted a proposal that will be voted on on Tuesday. It would generate $6.5 billion by repealing climate-related portions of the massive Inflation Reduction Act legislation of the Biden Administration. The bill would repeal important rules of the Biden administration Environmental Protection Agency, such as one which would reduce emissions allowed for light and medium duty vehicles beginning with model year 2027. The Energy Department would also receive $2 billion to replenish the Strategic Petroleum Reserve. The proposal was announced in an op-ed published by the Wall Street Journal on Sunday. The bill would rescind any remaining money that has not been spent from the $27 billion fund for greenhouse gas reduction. This money had been a target of EPA Administrator Lee Zeldin who alleged in court cases that it was being used fraudulently. The Energy Department would also remove all unspent IRA funding from its loan office, including tribal energy loan guarantee programs and financing for transmission facilities. The IRA would revoke all unspent funds made available for the reduction of methane at oil and gas installations and greenhouse gas reporting. It would also revoke funds allocated to reduce air pollution at ports, manufacturing facilities and in schools. Lena Moffitt, Executive Director of Evergreen Action, said, "Their plan guts investments which are cutting energy costs and powering a manufacturing boom in the United States, as well as delivering healthcare to communities who need it most." (Reporting and editing by Andrea Ricci; Valerie Volcovici)
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Roche expands its US presence by $700 Million in North Carolina
Roche Group announced on Monday it will invest over $700 million into a new manufacturing facility in North Carolina. The company is the latest to expand their presence in the United States in response to President Donald Trump’s tariff policies. The new facility in Holly Springs, North Carolina will support Roche's and Genentech’s future portfolio of obesity drugs. In March, Roche acquired the rights to petrelintide from Zealand Pharma of Denmark. This therapy is currently in mid-stage clinical trial. Roche's obesity pipeline includes drugs that treat obesity and diabetes from Carmot Therapeutics, which it acquired in 2023. The company stated that "this initial investment may expand in the future based on the business needs and U.S. policies." Roche announced in April that it will invest $50 billion over the next five-years in the United States, and plans to create 12,000 new jobs. This announcement is part a broader trend in which drugmakers like Eli Lilly and Johnson & Johnson have made massive investments. Gilead has also pledged to increase its domestic production as a response to President Trump’s tariff policies. The Trump administration is pressuring U.S. pharmaceutical companies to move production in-house. Last week, the President signed an executive directive to speed up approvals for pharmaceutical plants, encouraging U.S. manufacturing. Trump has also stated that he Plans to Sign He said that the executive order aimed to align US drug prices with those of other countries. This move, he claimed on social media, could lead to a 59% drop in drug costs. (Reporting and editing by Tasim Zaid and Shailesh Kuber in Bengaluru)
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Official: Iraq will reduce crude oil exports to the United States in May and June
Iraq will export 3.2m barrels of crude oil per day in May and in June, according to an Iraqi official who is familiar with the situation. This would be a substantial reduction compared to previous months. The official, who declined to give his name because the matter was confidential, added that the lower export plan is part Iraq's efforts in order to meet its schedule of compensation reductions pledged to OPEC+. Iraq's oil minister reported a rate of 3.42 million barrels per day in March. This would indicate a lower level of exports. Baghdad is yet to report April exports. However, Kpler, an intelligence data firm, reports that the country shipped a total of 3.3 millions bpd. OPEC+ (which includes OPEC, Russia, and other allies) has agreed to a series production cuts starting in 2022. The compensation plan, which was updated last month to reflect the latest reductions, is intended to encourage members who are unable or unwilling make full cuts, implement additional reductions. If the latest cuts are made fully, the compensation plan will offset a planned increase in output of 411,000 bpd by other members in OPEC+ for May and June. This would provide additional support to the oil market. (Reporting and editing by Susan Fenton; Alex Lawler)
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Gold drops over 2% after US and China strike tariff agreement
Gold, the safe-haven asset, fell by more than 2% Monday after a risky sentiment took hold following the announcement of the temporary tariff reduction agreement between the United States (US) and China. As of 0941 ET, spot gold was down by 2.5% to $3,239.54 per ounce. Bullion, a hedge for economic and geopolitical instability, reached a new record of $3,500.05 in the last month due to increased tariff uncertainty. U.S. Gold Futures fell 3% to $3244.20. BullionVault's director of research, Adrian Ash, said that gold's reaction to the chaotic headlines last month from the White House left the precious metal open to a Trump backtracking. Gold is likely to see upside potential if the optimism is shattered. Both sides announced that the U.S. would reduce its extra tariffs on Chinese imports, which it imposed in April of this year, to 30% (from 145%), and Chinese duties on U.S. imported goods will drop to 10% (from 125%), they said. The new measures will be in effect for 90 days. Following the agreement, the U.S. Dollar surged over a month high and global stocks rallied. A stronger greenback makes gold more expensive for foreign investors. The bulls of June gold futures have lost the technical edge they had in the near term. Bulls' next price target is a close over solid resistance at $3350. The first resistance is at $3.250, and then $3.275", said Jim Wyckoff. Senior analyst at Kitco Metals. Traders are now awaiting the U.S. Consumer Price Index, which is due on Tuesday, for direction on the Federal Reserve’s policy. The Producer Price Index, retail sales and the Retail Sales Index are also important data due this week. Low interest rates make non-yielding gold more appealing. Silver spot fell 0.2%, to $32.64 per ounce. Platinum dropped 1.7%, to $977.77. Palladium dropped 1.6% to $960. (Reporting and editing by Vijay Kishore in Bengaluru, Ashitha Shivaprasad from Bengaluru)
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While Brazilian President visits China, a $1 billion sustainable fuels deal is announced
Brazil announced two Chinese partnership on Monday. One of them was a $1 billion investment from China's Envision Energy in the production of sustainable aviation fuel. This announcement came as Brazil's president visited China. The President Luiz inacio Lula da Silva met with the energy industry, as well as GAC and Norinco, a Chinese defense company. Alexandre Silveira, Minister of Mines and Energy in Brazil, told journalists in China that the Brazilian government will also try to secure Chinese investment in data centers in Brazil and will be meeting TikTok Tuesday. Last month, it was reported that ByteDance (the owner of TikTok) is looking into installing data centres in the port city of Pecem, in the Brazilian state Ceara. TikTok refused to comment. Silveira, in a statement issued on Monday by the Brazilian government, told journalists that the government "was making every effort" to upgrade infrastructure around the TikTok port. The company has "a planned investment amounting to 50 billion reais (8.82 billion dollars). Envision Energy, according to the Brazilian Presidential Palace, will invest in the production in Brazil of sustainable aviation fuel using sugarcane. Brazil's Ministry of Mines and Energy announced in a separate press release that the state-owned Chinese firm Windey Energy Technology and Brazilian University Senai Cimatec will work together on developing renewable solutions including energy storage.
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The Russian central bank believes that oil prices will stabilize at $60 per barrel
The minutes of the April 25th board meeting published by the Russian central bank on Monday show that it believes oil prices will stabilize at $60 per barrel in future, as global demand is expected to increase as trade restrictions are eased. At the April meeting, the central bank held its main interest rate at 21%. The minutes of each board meeting are published two weeks after the meeting. They provide an insight into what factors influenced the decision. The bank stated that "global demand will recover when trade restrictions and tariffs have been reduced and government support measures are implemented." Brent crude LCOc1 Futures rose $2.43 or 3.8% to $66.34 per barrel on Monday after the U.S. said it would ease some tariffs. This raised hopes that the trade war will end between the two world's largest crude oil consumers. Oil prices have fallen about 20% since the January 15th peak of $82 per barrel, which was set for 2025. According to the central bank, the new trade tariffs on the global economy will have a limited impact on Russia. This is mainly reflected in lower oil prices. It warned, however, that there are serious risks associated with a further escalation in global trade wars. The central bank stated that "prolonged enforcement of restrictions could affect the dynamics of the oil price". (Reporting and writing by Elena Fabrichnaya; editing by Susan Fenton).
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China Minmetals unit bids for Australian miner to target global potash assets
Yankuang Energy, a coal miner owned by China Minmetals, announced on Monday that a unit of the state-owned company plans to invest $300m to purchase Australian potash miner Highfield Resources. The aim is to expand into potash projects across Canada and Spain. Highfield Resources announced in September that it would raise $220 from Yankuang Energy, among other parties. This deal would make the Chinese coal mining company its majority shareholder. If the agreement is completed, Qinghai Salt Lake Industry, owned by Minmetals, Yankuang and Highfield's largest shareholder EMR Capital would gain control of Highfield. Qinghai will also purchase Yankuang's Yancoal Canada operation, which includes its Southey Potash Project and Highfields' Muga Project in Spain that is ready for construction. Potash is an essential component of agricultural fertilisers and vital for food production. Qinghai Salt Lake Industry is the largest lithium and potassium producer in China. Qinghai, known for its mining operations focusing on metals such as copper and zinc, and Minmetals are developing together a lithium and potassium production center in northwest China worth 10 billion yuan (1,39 billion dollars). Yankuang's investment in Highfield was approved by Australia's Foreign Investment Review Board on April 1. Qinghai will also have to comply with this requirement if a binding deal is reached. This would include approvals for the deal from Spanish and Canadian authorities on foreign investment. Highfield Resources and Qinghai Salt Lake Industry didn't immediately respond to requests for comments.
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Oil jumps and soy increases as US-China tariffs pause brings relief
Oil prices rose more than 3% Monday, while soybeans were trading at their highest level in three months. This was after the United States paused tariffs on trade for 90 days. Two of the world's largest economies have agreed to temporarily reduce their reciprocal tariffs while they negotiate to stop a damaging trade conflict that has caused financial markets to rumble and raised fears of a recession. The U.S. is reducing the extra tariffs on Chinese imports from 145% to 30% and Chinese duties on U.S. imported goods will drop to 10% from 125%. The new tariff rates are lower than expected and return tariffs back to levels before Liberation Day. This was the day on April 2, when U.S. president Donald Trump announced a slew levies against trading partners. Brent and U.S. WTI futures have risen more than 3% following the agreement between the two world's biggest oil consumers. This is on top of gains last week of about 4%. Ole Hansen, analyst at Saxo Bank, said that crude oil was initially the biggest winner. The news helped to stabilize the demand outlook. The benchmark Dutch front-month gas contract, based on data provided by LSEG at 1229 GMT, rose to 36.18 Euros per megawatt hour or $11.79/mmBtu. This is the highest level since April 16. The U.S. soybean crop has been hit the hardest by the trade dispute, with China, the top soy importer in the world, shifting its purchases from the U.S. to Brazil, the second largest exporter. The Chicago Board of Trade’s most active soybean contract rose by 1.7% to $10.69 per bushel. This is close to the highest price since early February. Gold prices dropped to $3,207.3 per ounce, and last fell 2.85%, at $3,229.88. The price of industrial metals rose, as fears about growth and demand eased. However, traders noted that the market was still cautious. Aluminium gained 2.9%, to $2,488 per metric ton, while benchmark copper was up 0.9% at the London Metal Exchange. Callum Macpherson, Investec's head of commodities, said: "We don't know what happens after this period and whether the U.S. will be able reach a lasting deal." The longer the uncertainty continues, the more it will impact the economy. Reporting by Seher Daeden and Robert Harvey, London; Additional reporting by Nora Buli, Oslo; Brijesh Patel, Bengaluru, London; Kirby Donovan, editing.
United States, Canadian business begin 2024 with layoffs
Companies in the United States and Canada have started 2024 with countless task cuts throughout sectors, indicating that the spate of layoffs seen in 2023 might continue as they scramble to check costs.
While hopes of a soft landing have grown in recent months, companies continue to be cautious as the outlook on rate cuts by the Federal Reserve remains uncertain.
Here is a photo of task cuts announced up until now in 2024:
INNOVATION
* Amazon's job cuts consist of less than 5% of employees at Buy with Prime unit, 5% at audiobook and podcast division Audible, a number of hundred in streaming and studio operations, 35% at streaming system Twitch, a few hundred at health care units One Medical and Amazon Pharmacy. It also revealed layoffs at Amazon Web Solutions (AWS) affecting several hundred functions in sales, marketing, and international services and a few hundred roles in the physical shops innovation group.
* Layoffs at Alphabet include lots at the department for developing brand-new technology X Lab, hundreds in the advertising sales team, hundreds throughout teams, including the hardware group responsible for Pixel, Nest and Fitbit, and a. majority in the enhanced reality group.
* Microsoft is cutting around 1,900 tasks at gaming. divisions Activision Blizzard and Xbox.
* IBM prepares to lay off some employees in 2024 but. will work with more for AI-centered roles.
* E-commerce company eBay prepares to cut about 1,000. functions or around 9% of its workforce.
* Videogame software supplier Unity Software application to cut. about 25% of labor force, or 1,800 jobs.
* DocuSign strategies to lower its labor force by about. 6%, or 400 workers, with a bulk in its sales and marketing. organizations.
* Snap strategies to cut around 528 tasks or 10% of its. global workforce.
* Salesforce is laying off about 700 employees, or. roughly 1% of its international labor force.
* Network giant Cisco is preparing to restructure. its company which will consist of laying off countless. workers.
* Self-governing automobile innovation business Aurora Innovation. lays off 3% of labor force.
* Canada's BlackBerry plans more layoffs, in. addition to about 200 job cuts in the previous quarter.
* Satellite radio company SiriusXM plans to lower. workforce by about 3%, or about 160 functions.
* Bumble is set to get rid of 350 jobs or about 30%. of its workforce.
MEDIA
* Walt Disney's Pixar Animation Studios is set to. cut tasks as the studio has completed production on some shows.
* Comcast-owned British media group Sky prepares to. cut about 1,000 tasks throughout its businesses this year.
* The Los Angeles Times prepares to lay off 94 journalists.
* Paramount Global is preparing to carry out an. unspecified number of layoffs.
* Service Insider prepares to lay off around 8% of its personnel.
* Bell Canada prepares to slash 4,800 jobs.
FINANCIAL SERVICES
* PayPal Holdings is preparing to cut about 2,500. tasks, or 9% of its worldwide labor force this year.
* Payments firm Block Inc has actually started to cut. unspecified jobs.
* Citigroup is planning to minimize its headcount by. 20,000 people over the next 2 years. It has actually announced plans to. slash 716 functions in New york city towards that target.
* Investment banking giant Morgan Stanley is planning. to cut numerous tasks in its wealth management unit, an individual. familiar with the matter informed , adding that the cuts will. effect less than 1% of the division's workers.
* Exchange operator Nasdaq prepares to slash hundreds. of jobs as it integrates fintech company Adenza into its service.
* Asset manager BlackRock is set to cut about 3% of. its labor force however anticipates a larger headcount by the end of 2024.
CONSUMER AND RETAIL
* The world's biggest merchant Walmart plans to cut. hundreds of jobs at its home office and move a. bulk of its U.S. and Canada-based remote workforce to 3. offices.
* Cosmetics giant Estee Lauder plans to cut 3% to 5%. of its worldwide workforce.
* Wayfair plans to lay off 1,650 staff members, or about. 13% of its labor force.
* U.S. outlet store chain Macy's is cutting 2,350. tasks, closing five stores.
* Levi Strauss & & Co is preparing to slash 10% -15% of. global business tasks.
* Hershey's restructuring strategy will impact less than. 5% of its labor force.
* Nike will cut about 2% of its total workforce, or. more than 1,600 jobs, as the sportswear giant looks to cut expenses. after flagging weaker revenues this year.
HEALTH
* Novavax is cutting about 12% of labor force.
MANUFACTURING
* Defense professional Lockheed Martin is planning to. cut 1% of its jobs.
* United Parcel Service prepares to cut 12,000 jobs to. cut costs.
NATURAL RESOURCES
* U.S. miner Piedmont Lithium cuts 27% of workforce. in the cost-cutting plan.
* Canadian oil and gas pipeline company TC Energy has. laid off a few of its employees as part of a previously revealed. plan to integrate its natural gas pipeline systems.
* Canada-based crude pipeline operator Enbridge. stated it would reduce its workforce by 650 tasks, or 5%, in a quote. to cut expenses.
CAR MANUFACTURERS
Electric automaker Tesla will
lay off
more than 10% of its global labor force, an internal memo. seen on Monday shows, as it faces falling. sales amidst a magnifying price war for electrical vehicles.
(source: Reuters)