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Trump to waive Defense Production Act to boost critical minerals
U.S. president Donald Trump will cut some legal requirements including the approval of larger projects by Congress to boost domestic production. The government website shows that the document will be published in the Federal Register on Tuesday. The Defense Production Act is a U.S. statute that gives the president wide emergency powers in order to control domestic industries during times of national security. Trump invoked a law from the Korean War in March to boost domestic production of minerals that are critical for Washington's economic rival China. The law limits the president's power by requiring him to get congressional approval on projects exceeding $50 million dollars and limiting project completion dates to a one-year timeframe. According to a document seen, Trump will be expected to use these powers in an emergency. President Joe Biden used similar waivers during the COVID Pandemic to accelerate production of vaccines, medical equipment and other supplies. The White House didn't immediately respond to our request for a comment. Reporting by Ernest Scheyder, Jarrett Renshaw and Trevor Hunnicutt; Editing and Chizu Nomiyama.
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Wall Street stocks rise on Nvidia and trade hopes
Investors awaited more clarity about Washington's tariff plans as they awaited potential negotiations between the United States with its trading partners. The White House announced on Monday that President Donald Trump will be speaking with Chinese leader Xi Jinping this week. This comes after Trump had accused China of breaking a Geneva accord to reduce tariffs and trade barriers. Beijing has said that it will protect its interests, and that this accusation is unfounded. According to a draft of a letter sent to the negotiating partners, the Trump administration is asking countries to submit their best offers on trade negotiations before Wednesday. Officials are trying to speed up talks with multiple partners in order to meet a deadline they set themselves. "The most important thing for investors is that the administration wasn't going to impose those much-larger-than-expected tariffs and just leave them on, which would have almost certainly led to a recession," said Chris Zaccarelli, Chief Investment Officer at Northlight Asset Management. The fact that the U.S. has so many trading partners, including China, Japan, UK, EU, etc., makes investors more optimistic about the possibility of avoiding a recession. Investors are feeling more confident that we won't be in a recession." In May, Trump's trade policies were softer, which allowed risky assets to recover. The benchmark S&P500 and the tech-heavy Nasdaq posted their largest monthly percentage gains since November 2023. The preliminary data shows that the S&P 500 rose 34.59 points or 0.58% to 5,970.53 while the Nasdaq Composite increased 157.54 or 0.82% to 19,400.15. The Dow Jones Industrial Average gained 219.19 points or 0.52% to 42,524.67. Nvidia's gains boosted the information technology sector. Broadcom, a chipmaker, hit a new record high following the announcement that it had begun shipping its latest networking chips designed to speed up AI. "Commentary about Trump and Xi speaking started yesterday, and chips will likely be a topic of discussion," Angelo Zino is a senior equity researcher at CFRA Research. "Given that Nivdia has been essentially locked out of China for the past few years, any discussion will tend to favor Nivdia or chips over anything else." The U.S. Labor Department reported that job openings increased, but layoffs increased, indicating a slower labor market due to tariffs impacting the economy outlook. Orders for Factory Products The April drop was sharp, as the initial boost from purchasing ahead of tariffs faded. Census Bureau data from the Commerce Department showed a drop of 3.7% after a jump unrevised by 3.4% in March. The release of the monthly jobs data will provide more information on how trade uncertainty affects the largest economy in the world. The day will be filled with speeches by central bank officials including Lisa Cook, President of the Fed Board, Chicago Fed Austan Goolsbee, and Dallas President Lorie Logan. Kenvue shares fell, leading the declines in the benchmark S&P Index. The company, which produces consumer health products said at a Deutsche Bank Conference that retailers in China and the U.S. are destocking their products because of uncertainty about tariffs. Dollar General's shares surged after the discount retailer exceeded its quarterly sales expectations. JPMorgan upgraded the image-sharing platform Pinterest to overweight after it was rated neutral. Reddit shares fell on Tuesday after the social network platform was unavailable for more than 29,000 users, according to Downdetector.com. Reporting by Kanchana Chkravarty, Sukriti Gupta and Saeed Azhar from Bengaluru; editing by Devika Syamnath & Aurora Ellis
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Smoke from Canadian wildfires spreads to US Midwest
The smoke from three wildfires in Canada is now spreading to the Upper Midwest of the United States, bringing back memories of the heavy pollution that blew south from Canada during the worst fire season ever recorded there two years ago. Smoke pollution is already blowing through Minnesota and other neighboring states. This poses a serious health threat to the tens or millions of people who live there. Over the next few days, it is expected to reach New York City and other East Coast Cities in a less severe level. Doug Brugge is a researcher in public health at the University of Connecticut School of Medicine. He said that airborne particulate matters are the greatest environmental health risks we know of. It causes respiratory, cardiovascular and neurological damage, and these smoke plumes are at high levels in comparison to what Americans are usually exposed to. Since the beginning of May, scores of wildfires have spread across Canada. They forced thousands of people to evacuate and disrupted crude oil production. According to the Canadian Interagency Forest Fire Center, there were over 200 active fires on Monday. Of those, 106 were out-of-control. The majority of the fires have occurred in Alberta, Saskatchewan, and Manitoba. The current crisis is still not close to the 17 million hectares that burned in 2023. According to IQAir (a website that monitors the air quality in various parts of the world), the air quality rating for New York will rise to 77 early on Wednesday morning as a result. Readings in Philadelphia, Washington and Boston will also increase to 70, and 68 in Boston. According to the website, an air quality rating below 50 is "good," readings between 100-300 are "unhealthy" or "very unhealthy," and anything higher is "hazardous." Ely, Minnesota near the Manitoba border, was one of the worst places for air pollution on Tuesday afternoon. The reading was 336, which is considered "hazardous". The AQI in Duluth (Minnesota) was 164 in the afternoon on Tuesday, down from 309. In Flin Flon (Manitoba), about 800 miles (1300 km) north, in an area where Canadian wildfires have been concentrated, it was 202 in the afternoon, down from 359 the morning. In IQAir’s list of the major cities in the world, Minneapolis ranked third with a 168 air quality reading, tied with Kinshasa, the Democratic Republic of the Congo. VULNERABLE PEOPLE According to Brugge, children, the elderly, and those with chronic respiratory, cardiac and other illnesses, such as cardiovascular disease, are the most susceptible to the effects caused by smoke. He said that the risk of hospitalization or death was low for people who were healthy and young. There is evidence, however, that air pollution increases blood pressure and inflammation in these people. According to a recent California study, exposure to wildfire smoke can also increase the risk of lung cancer patients dying, especially among non-smokers. However, certain cancer treatments may mitigate this effect. Some farmers, however, believe that the fires' effects are not entirely negative. On online forums such as Facebook, some farmers claim that their best harvests have come from years when there was a pall of smoke from wildfires from Canada. They believe that the smoke can protect crops vulnerable from scorching sun.
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IAEA chief: No way to restart Zaporizhzhia Nuclear Plant at this time
The head of the UN nuclear safety watchdog stated on Tuesday that the idled Zaporizhzhia plant, which is occupied by Russia, was not in a position to restart at this time due to the lack of cooling water and a stable electricity supply. IAEA Director-General Rafael Grossi said that water would need to be pumped out of the Dnipro River to restart the plant. It hasn't generated electricity for almost three years. In March 2022, Russia occupied the facility in Ukraine's Zaporizhzhia Region, Europe's biggest nuclear plant. This was shortly after Russia launched its full-scale invasion against its neighbor. The plant produced a fifth (of Ukraine's) electricity before the war. Grossi, in an interview with Kyiv, said that the Russians "never concealed the fact" they wanted to restart the factory, but they wouldn't be able do so anytime soon. The plant is located less than 10 kilometers (6 miles) away from Ukrainian positions across the Dnipro River. The plant has six reactors. The last one stopped producing electricity in September 2022. After the Kakhovka Dam was destroyed, the water level in its cooling pond on the southern Dnipro bank dropped dramatically during the summer of 2023. The nearby areas are regularly bombarded by artillery or drones, which can damage the remaining power lines that supply the electricity required for the plant to self-cool, even when it is dormant. Both sides blame each other for the attacks. Greenpeace released a report on Monday stating that Russia is building a 90 km high-voltage line to connect its power plant with the grid. Grossi stated that the IAEA disagreed with the conclusions of this report. There are areas where some work has been done, but we have no concrete evidence to suggest that this was part of an orchestrated, concerted plan to connect the plant in some sense. "We do not have a situation where the plant is about to restart imminently." Grossi stated that it would be a long time before the plant could be restarted. He added that the plant's machinery must be thoroughly checked before any restart. "You can imagine that in a piece of machinery of this size, there are pumps, bolts, pipes and a variety of other things which may be corroded." Grossi stated that all six reactors of the plant could be restarted if sufficient water was pumped into the Dnipro River. However, "a number" of things would have to be done before. RUSSIAN TECHNICIANS Ukraine said that any attempt made by Russian technicians to restart this plant would be dangerous as they are not certified operators. Grossi stated that Russian nuclear staff was capable of restarting the reactor, and the certification issue was more political than technical. He said, "They're professionals - they know what they're doing." Ukraine also protested against the IAEA monitoring mission that visited the plant via Russian-occupied territory. Grossi explained that he was doing this to protect his staff and because he did not yet have the guarantees he needed from the Russians to transit IAEA personnel safely through the frontlines into Ukraine-controlled territory as a number of times before. (Reporting and editing by William Maclean, Frances Kerry and Max Hunder)
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Gold Reserve affiliate bids in Citgo parent auction
The company reported on Tuesday that an affiliate of Gold Reserve miner submitted a bid in the top period of the U.S. Court-organized auction for shares of the parent company of Venezuelan-owned U.S. refiner Citgo Petroleum. According to the Delaware court calendar, after the court selected a $3.7billion offer from an affiliate of Contrarian Funds this year as the starting bid, competitors may submit better bids in the topping period until June 18. The court officer who was overseeing the sale process last month stated that the resolution of parallel cases pursuing the same assets which are being auctioned off in the 8-year case encouraged new offers without giving details. In a press release, Gold Reserve said that a consortium of Rusoro Mining, Koch Minerals, and Koch Nitrogen International supported the bid made by Gold Reserve subsidiary Dalinar Energy. Dalinar Energy could revise their bid before the expiration date of June 18, adding that they have a combination of equity and debt funding and are supported by three major financial institutions in a lending consortium. The auction results will not be revealed until the judge has disclosed the specifics of the bids. Documents from the court revealed that, in addition to Contrarian Funds, the Gold Reserve Group, and Vitol, the trading house also participated during the initial bid phase. Robert Pincus, a court officer, will recommend a winner by the 27th of June. The auction is intended to compensate up 15 creditors who have defaulted on their debts or been expropriated in Venezuela. Reporting by Marianna Pararaga Editing and translation by Margueritachoy
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Wildfires in Canada are impacting oil supply
The wildfires in Canada's oil producing province of Alberta has reduced Canada's daily crude output by approximately 7%. The following is a list of oil production sites that have been affected so far. CENOVUS Energy - CHRISTINA LAKE SITE: On May 29, Cenovus began to shut down production of approximately 238,000 barrels a day at its Christina Lake facility south of Fort McMurray in Alberta. The company stated that it was not aware of any damages to its infrastructure, and anticipates a full site restart in the near future. CANADIAN NATURAL RESOURCES – JACKFISH LAKE: Canada’s largest oil-and-gas producer announced on May 31 that it had evacuated its Jackfish 1 thermal-in-situ operations south of Fort McMurray in Alberta, and completed a safe, temporary shutdown of approximately 36.500 bpd bitumen production. MEG ENERGY CHRISTINA LAKE REGIONAL PROJECT MEG, an oil sands firm, announced on May 31 that it had evacuated all non-essential staff from the Christina Lake Regional Project Site south of Fort McMurray. The company stated that the wildfire damaged the power line connecting MEG's Phase 2B project with Alberta's electrical grid. This was causing delays in the startup of MEG operations. These represent about 70,000 bpd in production. Amanda Stephenson reports from Calgary.
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Smoke from Canadian wildfires spreads to US Midwest
The smoke from three wildfires in Canada is now spreading to the Upper Midwest of the United States, bringing back memories of the heavy pollution that drifted down from Canada during the worst fire season ever recorded two years ago. Smoke pollution is already drifting to Minnesota and other states nearby. In the coming days it is expected to reach New York City and other East Coast Cities, posing health risks to tens or millions of people who live there. Doug Brugge is a researcher in public health at the University of Connecticut School of Medicine. He said that airborne particulate matters are the greatest environmental health risks we know of. It causes respiratory, cardiovascular and neurological damage, and these smoke plumes are at high levels in comparison to what Americans are usually exposed to. Since the beginning of May, scores of wildfires have spread across Canada. They forced thousands of people to evacuate and disrupted crude oil production. According to the Canadian Interagency Forest Fire Center, there were over 200 active fires on Monday. Of those, 106 were out-of-control. The majority of the fires have occurred in Alberta, Saskatchewan, and Manitoba. The current crisis is still not close to the 17 million hectares that burned in 2023. Ely, Minnesota near the Manitoba border was one of the worst places in the U.S. on Tuesday for air pollution. According to IQAir's website, which monitors air pollution around the globe, it registered a "hazardous air quality index" reading of 336. According to the website, an air quality rating below 50 is "good." Readings between 100-300 are considered "unhealthy," "very unhealthy," or "very unhealthy," while readings higher than this are considered "hazardous." The AQI in Duluth (Minnesota) was 309 by midmorning on Tuesday. In Flin Flon (Manitoba), about 1,300 km to the north, in an area where Canadian wildfires have been concentrated, it was 359. In IQAir’s list of major cities around the world, Minneapolis ranked second with a 210 rating, behind only Kuwait City which led the list, with a reading of 318. VULNERABLE PEOPLE According to Brugge, children, the elderly, and those with chronic respiratory, cardiac and other illnesses, such as cardiovascular disease, are the most susceptible to the effects caused by smoke. He said that the risk of hospitalization or death was low for people who were healthy and young. There is evidence, however, that air pollution increases blood pressure and inflammation in these people. The problem is worse in older buildings. Experts have stated that the concentration of wildfire pollution indoors can be as high as 70% higher than outside if there is a poor seal on a building. The U.S. Environmental Protection Agency recommends that people refrain from indoor activities which can cause fine particles to be released into the air. This includes smoking, broiling or frying food, burning incense or candles, or vacuuming without using a HEPA-filter. According to a recent California study, exposure to wildfire smoke can also increase the risk of lung cancer patients dying, especially among non-smokers. However, certain cancer treatments may mitigate this effect. Some farmers, however, believe that the fires' effects are not entirely negative. On online forums such as Facebook, some farmers claim that their best harvests have come from years when there was a pall of smoke from wildfires from Canada. They believe that the smoke can protect crops vulnerable from scorching sun.
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Russian billionaire: SAP replacement is expensive but essential
Alexey Mordashov, a Russian steel billionaire, said that creating a home-grown alternative to SAP's widely used business software will take more time and money than expected but it is a matter for survival. SAP is a software company that makes software to help businesses manage everything from marketing, human resources, and logistics, to procurement and procurement. SAP supplied software to Russia's biggest companies, such as airline Aeroflot and Russian Railways. However, it curtailed business after Moscow sent troops to Ukraine in March 2022, and eventually stopped operations. Mordashov's steelmaker Severstal and Sibur, a petrochemicals company, have been working together to find an alternative SAP software. He said, "We've done a lot of research on this issue in the last year. But it turns out that everything has become more complicated and expensive, requiring more precise refinement." He added, "We know the importance of completing this task...because we must survive." Before the Ukraine conflict, SAP held 60% of the Russian business software market. The rest was split between Microsoft and Oracle. Many Russian companies still use SAP software that was pre-installed, but they do not have access to the updates or support provided by the German company. This leaves their systems susceptible to failure. Mordashov's remarks highlighted the difficulties Russian companies face in developing alternatives to Western software while facing Western sanctions. Severstal and Sibur originally teamed up to create software with the domestic software manufacturer Consist, but they have now ended their partnership. Severstal has now begun to look at solutions offered by Business Technologies, a developer. Other Russian companies, such as Russian Railways and the oil company Gazpromneft, have also chosen to work with 1C and plan to launch an alternative SAP software domestically in 2027. (Reporting Anastasia Lyrchikova; additional reporting by Oksana Kobieva; writing by Gleb Brynski, editing Alexandra Hudson).
US lukewarm on G7 Russian diamond restriction after market reaction
The United States is reviewing the strictest components of a ban on Russian diamonds from the Group of 7 significant democracies, after opposition from African countries, Indian gem polishers and New York jewellers, seven sources stated.
The sanctions package, concurred in December and consisting of a. restriction across the European Union, represents one of the industry's. biggest shakeups in decades.
2 of the sources familiar with the negotiations said the. Americans had actually disconnected from G7 working groups on the. stringent controls, with one explaining them as there but not. engaging.
The U.S. State Department declined to comment.
A senior Biden administration authorities stated Washington had. not altered its position which the United States would keep. working with the G7.
We will wish to ensure that we strike the best balance. between harming Russia and making certain that whatever is. implementable, stated the official, who spoke on condition of. anonymity.
The G7 sanctions intend to strike another stream of income for. the Kremlin's war effort in Ukraine, even though at around $3.5. billion, according to Russian state-run miner Alrosa's. 2023 outcomes, diamonds represent a small fraction of the profits. Moscow earns from oil and gas.
Since March, importers to G7 countries need to self-certify. that diamonds do not stem from Russia, the world's leading. manufacturer of rough diamonds. Sanctions were troubled direct. imports of Russian gems in January.
From September, the EU ban will require diamonds of 0.5. carats and above to go through Antwerp, a centuries-old. diamond center in Belgium, for traceability certification utilizing. blockchain - the digital journal utilized by cryptocurrencies.
Sources stated G7 powers had agreed that Antwerp would be the. rational very first center, with others to be added later.
But 3 of the sources stated Washington had actually cooled on. imposing traceability which conversations on executing. tracing had stalled.
The Biden administration authorities said the dedication to. implementing a traceability system by Sept. 1 used to the. European Union, not the United States, citing the language in a. G7 leaders' statement in December.
We need to do this in such a way that takes into account. concerns from African partners and African manufacturers, takes into. account Indian and UAE partners ... and makes certain we can also. make it workable for U.S. market, said the official.
Is there a traceability system that pleases all of. that? We're still engaged, we haven't ignored the. concept ... on the other hand, we could not sign up to definitely. having this in location by Sept. 1st.
The presidents of Angola, Botswana and Namibia composed to G7. leaders in February to state that a pre-determined entry point for. the G7 market would be unjust, strike flexibilities, and hurt. profits. The 3 countries represent 30% of diamond output.
Italy, which holds the presidency of the G7, decreased to. comment on the U.S. position.
Any softening of the phased restriction threats leaving loopholes and. permitting Russian diamonds into boutiques in New York, London and. Tokyo - a threat highlighted when Belgian authorities seized. thought Russian stones worth millions of dollars in February.
Supporters of the sanctions say a traceability mechanism is. required to provide a robust ban and that without the full. engagement of the United States, which accounts for 50% of the. G7 diamond jewellery market, it can not be effective. They blamed. a few of the industry pushback on worries of higher market. transparency.
A Belgian authorities acquainted with the negotiations stated it. was critical to preserve the determination to keep loopholes. strongly closed.
CERTIFYING AT SOURCE
A previous U.S. ban on Russian diamonds omitted stones. polished in other places, enabling diamonds processed in India and. traded in centers like Dubai to reach the U.S. market.
The G7 restriction followed months of wrangling in between Western. capitals.
Diamond miners such as De Beers, a system of Anglo American. , Indian cutters and jewellery sellers have highly. lobbied versus the ban. They say the procedures are poorly. developed, will increase administration and inflate costs.
De Beers told it supported a ban but that. diamond-producing nations should accredit origin at the source.
The opportunities for, and possibility, of Russian diamonds. penetrating the legitimate supply chain remain in fact higher when. you move further away from the source, the company stated.
Virginia Drosos, president of Signet, the. world's largest merchant of diamond jewellery, urged the U.S. federal government in a letter seen to stand versus ... the. G7 Belgian service.
Belgium has actually presented a pilot tracing plan based in. Antwerp in which some 20 diamond buyers are participating, amongst. them French luxury groups LVMH and Kering as. well as Switzerland's Richemont, one of the sources. stated.
An LVMH spokesperson said its Tiffany & & Co brand was. getting involved. Kering and Richemont did not comment.
Belgian Prime Minister Alexander De Croo informed in. March that he was open to extra centers being developed for. certification if they matched Antwerp's requirements, which. concerns were unavoidable.
If you execute something that is altering the video game,
(source: Reuters)