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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.
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Third Point has stake in U.S. Steel and sees credit opportunities, a letter states
Third Point hedge fund owns "meaningful" stakes in U.S. Steel, and it expects the merger between Nippon Steel of Japan and U.S. Steel to proceed. In a letter, billionaire investor Daniel Loeb said that his firm believes U.S. Steel will "complete a planned merger" with Nippon Steel on the basis of the industrial logic. Third Point's share was not previously disclosed. Investors are now trying to figure out the future of the merger. Loeb said Third Point also sees new opportunities for investment in credit markets which have been shaken by the reaction to Trump's policies. He had increased its investment in activist, event-driven and risk arbitrage positions, which he believes will perform well under more turbulent market conditions. The Biden administration blocked the deal earlier this year between the two companies. However, U.S. president Donald Trump ordered a national security review last month, which raised hopes that a deal could still be reached. Loeb wrote in his article that a U.S. Steel-Nippon tie-up would have "benefits for 'America First,' reindustrialization plans." Third Point also has a stake in the consumer healthcare company Kenvue. Other activist investors are already pushing for change, such as divestments, or even a possible sale of the company.
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Elche's stadium cleanup act bans sunflower seeds snacks
Elche, a Spanish club, has decided to break tradition and ban the sale and consumption sunflower seeds on their own ground. Cleaning up the shells that fans spit led to higher costs and unhygienic situations. Elche plays its home matches at the 31 388-capacity Estadio Martinez Valero, but the popular Spanish snack known as 'pipas" will no longer available to match-going fans. Elche has described the recent "structural problems" that have resulted from eating sunflower seeds. Elche stated in a press release that "the shells clog pipes and drains, they degrade the seats and damage the paint and finishes on multiple surfaces." They increase maintenance and cleaning costs. They attract rats and pigeons. And, most importantly, they compromise the safety of the stands. It is impossible to remove all the waste from every match despite the efforts of the cleaning teams. The club stated that the husks contribute to the erosion and deterioration of the concrete flooring, while debris can sometimes accumulate in difficult-to-reach places in the stadium. The club said that "this decision is not meant to penalise anyone, but to preserve the best conditions possible for a shared space." Valencia implemented similar measures at the Mestalla Stadium in 2023, where they prohibited the sale of sunflower seed and asked fans bring a bag to dispose of shells. (Reporting and editing by Toby Davis in Bengaluru, with Rohith Nair reporting from Bengaluru)
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Southern Co's retail sales beat first-quarter estimates
Southern Co, a power company in South Carolina, beat Wall Street expectations for its first-quarter profits on Thursday. This was due to an increase in retail electricity sales and a higher demand for energy. Utilities in the U.S. have seen a rise in demand due to the increasing use of artificial intelligence, which is driving the need for larger data centers that consume more energy. Electricity demand for heating, transportation and business purposes is also increasing. In February, the U.S. Energy Information Administration predicted that power demand would reach record levels in 2025 and in 2026. Residential, commercial, and industrial customers accounted for a 4.2% rise in sales of kilowatt hours in the company's first quarter. The company reported a 11% increase in data center usage for the first three months of this year. It also said that it has a large load-pipeline of over 50 gigawatts, of which 10 GW are committed and 6 GW are contracted. Total operating revenues for the quarter rose by 17%, to $7.78 Billion from a year ago. Interest expenses, however, rose 7.3%, to $714 millions, in the first quarter. Operating expenses, meanwhile, increased from $4.9 billion to $5.8 Billion, a jump of $1 billion. Southern Company is the U.S.'s second largest utility company, measured by its customer base. It provides power to six states: Alabama, Georgia Illinois, Mississippi Tennessee and Virginia. LSEG data shows that the Atlanta-based company reported an adjusted profit per share of $1.23 for the three-month period ended March 31. This compares to analysts' expectations of $1.20, which were compiled by LSEG. (Reporting from Katha Kalia, Bengaluru. Editing by Leroy Leo.)
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PBF Energy reports quarterly loss amid maintenance and turnaround activities
PBF Energy, a U.S. refiner, posted a loss for the quarter on Thursday as compared to a profit from last year. The fire at the Martinez refinery in California along with other turnaround activities affected refining margins. In preparation for summer driving, U.S. refineries undergo seasonal maintenance and turn-around activities. This reduces the refinery's ability to generate revenue and temporarily lowers its utilization. "Policy volatility and macroeconomic uncertainty combined with the Martinez incident, planned maintenance in PBF's refinery system, as well as policy volatility and macroeconomic uncertainties, created a challenging first quarter environment," said CEO Matt Lucey. A fire had broken out on February 1 at its 156,400-barrel-per-day Martinez refinery, impacting operations. In April, limited operations were resumed and the remaining units will likely restart in the fourth quarter. The Parsippany refiner in New Jersey reported a first-quarter loss of $401.8 million or $3.53 per common share. This compares to a profit of $106.6 millions or $0.86 per ordinary share compared to a year ago. PBF Energy reported that its gross refining margin for the first quarter was $6.39 a barrel, compared to $2.68 a barrel a year ago. The company reported that its crude oil and fuels throughput fell from 897.400 barrels per day a year ago to 730.400 barrels a day in the quarter under review. LSEG data shows that the company's adjusted loss per share was $3.09, compared to the estimated loss of $3.12, according to the data.
Medvedev claims that Trump forced Kyiv into paying for US aid because of the Ukraine mineral deal.
Dmitry Medvedev, a senior Russian security official, said that President Donald Trump forced Kyiv on Thursday to pay for any future U.S. Military aid.
The agreement, which was signed on Wednesday in Washington, gives the United States access to new Ukrainian mineral deals and funds investment in Ukraine's rebuilding.
According to The Kyiv Post citing diplomatic sources the Trump administration informed Congress of its intent to approve the export of defense-related products into Ukraine via direct commercial sales exceeding $50 million, marking the first such step since Trump returned to the White House.
Could not confirm immediately.
"Trump has broken Kyiv's regime to the extent that they will be forced to pay for U.S. assistance with mineral resources," Medvedev wrote on Telegram, a former Russian President who is now the deputy chairman of Russia’s Security Council.
He said: "Now (Ukrainians), they will have to buy military supplies using the wealth of a country that is disappearing."
Medvedev was the president of Russia from 2008 to 2012 and once portrayed himself as a liberal pro Western moderniser. However, he has become one of the most vocal anti-Western hawks ever since Russia's invasion of Ukraine in 2022.
The agreement on minerals was reached as the U.S. grew increasingly frustrated with the refusal of Moscow and Kyiv, to sit down for peace talks.
Moscow is prepared for direct talks and is open to an ongoing peace settlement. However, the complexity of the issues involved means that this process cannot be rushed.
Kyiv has said it supports an immediate, unconditional ceasefire lasting at least 30days. Vladimir Putin, the Russian president, has stated that he is in agreement with this principle but that many questions need to be clarified.
Putin announced a 3-day ceasefire from May 8-10 when Russia will celebrate the 80th anniversary since its victory over Nazi Germany during World War Two.
The Kremlin said that Russia had enormous mineral wealth and hinted at potential deals with the U.S. It has not yet commented on the Ukrainian mineral deal.
Sergei Markov said that the deal reached between Washington and Kyiv will make it more difficult for Russia to achieve peace in Ukraine by means of talks, because Trump has set up a system to "justify' new spending on the conflict.
"The U.S. has begun to view itself as a kind of co-ownership of Ukraine." Markov predicted that the U.S. would take a pro-Ukrainian stance. Reporting by Andrew Osborn, Writing by Mark Trevelyan; Editing By Mark Trevelyan
(source: Reuters)