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UN document reveals that the US is attempting to undermine global efforts for development finance
A document from the United Nations that was seen by revealed that the United States wants to weaken an international deal designed to help developing countries who are struggling with climate change, among other things. The Trump administration is against draft reforms to the global financial system that are intended to assist developing countries. This includes taxation, credit rating and fossil fuel subsidy. The administration wants to remove all mentions of "climate", "gender equality", and "sustainable development". The document, which was previously unknown, sheds light on the Trump administration's efforts to impose an "America First", including opposition to efforts that slow climate change and promote diversification, on institutions at the core of solving global systemic crises. The 4th International Conference on Financing for Development, which takes place every decade, will be held in Seville, Spain in June. Its aim is to influence the strategic direction taken by the development finance institutions around the world. At FFD3, countries agreed to expand tax cooperation so that developing nations could set the rules. As of May last year, more than 140 countries are involved. Tom Mitchell, Executive Director of the International Institute for Environment and Development said, "This conference aims to bring together world leaders and set the rules and priorities for funding development goals in the next decade." The U.N. Secretariat assisted the Mexico, Nepal and Zambia Permanent Representatives to compile the April 11 draft, which is annotated by the 193 countries involved in the discussion. The U.S. delegation said that the FFD4 draft was prescriptive, too long and had a lot of prescriptive language. They also denounced the "ever-widening definition" of sustainable development. Jonathan Shrier, acting U.N. Economic and Social Council Representative for the United States, said: "The international financial organizations have independent mandates and authority. We do not support any attempts to impose U.N.-style directives on their priorities or activities." The United Nations does not have direct control over multilateral development financing institutions. The document was a response to the U.S. Treasury secretary Scott Bessent's pushback against the ongoing changes at both the World Bank and International Monetary Fund for the fight against Climate Change. It also showed that the U.N. reform prescriptions were being watered down. The document reveals that the U.S. is looking to remove the reference to "a package of reforms" in relation to sustainable development. It wants to replace the line that promises to "commit reform to the international financial infrastructure" with the pledge to "recognize and enhance its resilience to current and future crises and challenges." These changes in language can be used to support future actions or inactions in discussions by indicating the level of commitment. In an email, Florencia Nino, spokesperson for the U.N. secretary-general Antonio Guterres said that the Secretary-General acknowledged the need to overcome many challenges before the conference. However, he urged all countries to "be at the table focused on solutions in Sevilla," she added. Both the Treasury Department and State Department declined to comment. The White House has not responded to a comment request. The U.S. position on development is tougher now under Trump. However, the document of negotiations shows that it still supports efforts such as developing countries working closer with the private sector and fostering financial literacy and innovation. CLIMATE CHANGE The global reforms aim to help the poorer nations better cope with climate change-related weather disasters and boost economic growth by using low carbon energy instead of traditional fossil fuels. Donald Trump, the president of the United States, has withdrawn from UN climate agreement in Paris. He also slashed U.S. Foreign Development Aid by more than 80%. This was part of an overhaul government led by Elon Musk. The U.S. has objected to several areas in the FFD4 document, including a call to countries to investigate "global solidarité levies", which could include taxes on high-polluting activities or super-rich people to finance sustainable development. The levies, if included, could be discussed in the U.N. tax negotiations this year. They would also support a taskforce led by France Kenya and Barbados, which aims to create such taxes for smaller groups of countries. Russia, Saudi Arabia, and China are also among the countries that object. The document also shows that the U.S. wants to remove a paragraph that calls for companies to pay taxes to countries where economic activities occur; a paragrah on helping developing nations improve tax transparency and another one on phase-out inefficient fossil fuel subsides. The FFD4 document indicates that the U.S. is looking to remove a paragraph about reforming the rating system. It showed that rating agencies should be more lenient with nations who voluntarily restructure debt in order to invest in environmentally friendly projects. Documents show that the U.S. is also against a commitment by countries to receive "adequate funding and uninterrupted at appropriate terms for social protection, and other essential social expenditures during shocks and crisis," according to the document. The draft agreement is likely to be revised as countries continue to negotiate in May before reaching consensus on the final document by mid-June. The U.S.'s position places pressure on other nations to accept a weaker agreement, as the talks are aimed at adopting a deal through consensus. (Reporting and editing by Dawn Kopecki and Rod Nickel in Washington Additional reporting and editing by David Lawder in London and Daphne Psaledakis and Kate Abnett in London)
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Sources say LNG Canada is preparing its plant to begin production in June.
Two people who are familiar with the process said that LNG Canada had completed cooling down its Kitimat liquefied gas plant and was preparing to produce the first LNG at the plant in June. To ensure the production of super-cooled gas, cooling an LNG plant is essential. It's also a crucial step before starting operations. LNG Canada will be the first LNG export facility in Canada. It is expected to export 14 million metric tons per year (MTPA). LNG Canada confirmed on Saturday that the Maran Gas Roxana left the plant after delivering a shipment to the plant on April 1. LNG Canada announced on Monday that the LNG was needed for testing equipment and cooling down the facility. This is crucial for our commissioning process and for a safe start up of operations. LNG Canada said that it would continue to flare into May. LNG Canada has said that flaring will take place while the systems are being tested. In a notice, LNG Canada stated that the flare height would vary between 20 meters and 50 metres (65-164 feet) up until May 15. Once the plant is operational, it will provide Canadian energy companies with another outlet to sell their products, and facilitate sales into other countries. As of now, Canada's gas is only available in the U.S. According to U.S. Energy Information Administration data, Canada will export about 8.6 billion cubic foot per day (bcfd), up from 8.0 bcfd a year ago and an average of 7.5 bcfd from 2018 to 2022. LNG Canada is a joint-venture between Shell, Petronas, PetroChina, Mitsubishi Corporation, and Kogas. Reporting by Curtis Williams, Houston; Editing and production by Liz Hampton and Margueritachoy
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Coterra Energy, a producer of shale gas, reports higher quarterly profits and cuts its spending target
Coterra Energy, a U.S. producer of shale gas, reported an increase in its first-quarter profits on Monday. However, it said that due to the macroeconomic uncertainty they would reduce their annual budget for capital expenditures. The U.S. Energy Sector is preparing for possible fallout due to President Donald Trump's sweeping trade tariffs and a fierce trade war with China - factors that could decrease demand for oil and gas. Diamondback Energy, earlier today, also reduced its annual capital budget as well as production forecasts due to macroeconomic uncertainties affecting the global energy demand. Coterra CEO Tom Jorden said: "As we face macroeconomic uncertainty and oil prices headwinds at this time, we believe that it is prudent to decrease oil-directed activities." The company lowered its capital budget for 2025 to a range between $2.0 billion and $2.3 billion. This is down from the previous forecast which was $2.1 billion to $2.44 billion. The company also plans to operate only seven rigs during the second half, as opposed to its earlier plan of operating ten rigs. Coterra stated that this decision was made to boost free cash flow, and maintain the oil production forecast of the company. After the bell, shares of the company fell by 1.5%. Coterra's results for the first quarter were driven by increased production in Permian basin and Anadarko Basin, but these gains were partly offset by lower oil prices. The total production increased to 746.800 barrels equivalent of oil per day (boepd), up from 686.100 boepd during the first quarter ending March 31. The average oil production was 141,200 barrels a day, and the average realized price of each barrel -- the price paid for every barrel produced -- was $69.73. This is 7% less than the previous year. Houston-based company, Texas, reported that its net income increased to $516 millions, or 68c per share, in the first quarter of this year, from $352 million or 47c per share a year earlier.
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Two dead in British Supersport crash at Oulton park involving 11 riders
Motor Sport Vision (MSV), the circuit owners, said that Supersport riders Owen Jenner and Shane Richardson died in a crash on Monday involving 11 motorcycles at the start of an event at Oulton Park. Tom Tunstall, 47 was hospitalized with severe abdominal and back injuries. Five other riders with minor injuries were also taken to a medical centre at the circuit of northern England. After the crash, the race was immediately stopped. The British Superbike Championship event was then cancelled. MSV reported that British rider Jenner initially received treatment at the trackside but later died of a severe head injury when taken to a circuit medical center. Richardson, a New Zealander, was treated at both the trackside medical centre and at first at the medical center but died of severe chest injuries before arriving at Royal Stoke University Hospital. MSV and the Motorcycle Circuit Racing Control Board, along with the police and coroner, were conducting an investigation. (Reporting and editing by Pritha Sakar in London. Alan Baldwin reported from London)
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Environmental groups vow to fight after US TVA chief says coal plants can last longer
Environmental groups have criticized comments made by the Tennessee Valley Authority's head, who said that the utility's coal-fired plants would continue to run after the planned 2035 shutdown. TVA's CEO Don Moul stated last week that TVA was evaluating the executive orders signed last month by President Donald Trump that sought to save coal plant that were likely to close, reduce regulations on coal plants and reduce barriers for coal mining. Moul, after a financial quarterly call last week, said: "We're re-evaluating our end-of life study on our coal fleet. We are also taking a close look at our asset strategies in light of the regulatory environment that is before us." Moul stated that two plants, Shawnee in Kentucky and Gallatin, Tennessee, "have a strong potential to continue operating for the foreseeable, as long as the regulatory allowance is available." Moul said that the two other plants in Tennessee, Kingston and Cumberland are also more restricted by regulation, but more decisions will be made in the future. The four TVA plants are capable of producing 7,000 megawatts. This is enough power to run more than 4,000,000 homes. TVA announced in 2021 that it would shut down the plants by the year 2035 as they had reached the end-of-life cycle. In 2035, then-President Joe Biden also wanted to decarbonize the power grid in order to combat climate change. Utilities scramble to ensure power generation, as U.S. demand for electricity is increasing for the first decade on account of growth in artificial intelligence data centers. Scott Brooks said, on Monday, that TVA's future plans include additional needs for power generation into 2050. "We are exploring all options in order to meet these needs." Bonnie Swinford is an organizer with the Sierra Club and she said that her organization will oppose any extension. Swinford stated that "these expensive and unreliable coal-fired plants do not serve Tennesseans anymore than a screen on a sub." "We deserve affordable, clean energy that will lead to a healthier community." Howard Crystal, legal director for energy justice at the Center for Biological Diversity said he hoped that any extension of these plants would not set a precedent. It sends the wrong message to the world regarding our commitment to address climate change and clean up polluting energy sources. (Reporting and Editing by Margueritachoy)
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Oil prices fall as bond yields increase and global stock indexes dip
MSCI's global equity index fell on Monday due to the latest uncertainty surrounding tariffs, while oil prices dropped on the prospect that production would increase and U.S. Bond yields increased. The yields on U.S. Treasury bonds were slightly higher following data showing that the services sector of the world's biggest economy was resilient in January, with prices, a measure of inflation, reaching a two-year peak. The gold price rose, driven by a lower dollar and demand for safe havens ahead of the U.S. Federal Reserve’s rate policy announcement due later this week. After nine sessions of gains, MSCI's global stock index fell by 3.04 points or 0.36% to 846.21. The overall trading was subdued due to public holidays in many countries, including Britain China and Japan. The pan-European STOXX 600 Index closed earlier up 0.16%. Wall Street's three major averages all ended lower, with the S&P 500 index and Dow Jones Industrial Average ending nine-session winning streaks. Sahak Manuelian said that the stock market was taking a break on Monday after having moved higher for two weeks from early April's lows. He also noted that trading volumes were low. Equities opened lower due to renewed uncertainty over U.S. president Donald Trump's policies on trade after he announced that a 100% tariff would be imposed on movies produced outside of the United States, but provided little clarity about how it would be implemented. Adam Sarhan of 50 Park Investments, Orlando, Florida, said: "Markets love certainty. And investors woke (Monday) up with even more uncertainty about what could happen with tariffs." Shares of video streaming services such as Netflix, Paramount Global and Netflix fell after the news about movie tariffs. Sarhan stated that investors are worried about the possibility of more industries being targeted "if investors awaken to another 100% or a 200% levy against some other industry, which is integral to our economic." Sarhan said investors are concerned that more industries could be targeted "if investors wake up to another 100% or 200% levy on some other industry which is integral to our economy." In recent days, optimism about a possible de-escalation in trade tensions between China and the United States had boosted market sentiment. European shares were trading at levels just below those seen before Trump’s major tariff announcement on April 2, which roiled markets. Wall Street stocks saw the Dow Jones Industrial Average fall 98.60, or 0.24% to 41,218.83. The S&P 500 dropped 36.29, or 0.64% to 5,650.38, and the Nasdaq Composite lost 133.49, or 0.74% to 17,844.24. Oil prices dropped more than $1 a barrel in energy markets after OPEC+ announced over the weekend that they would increase oil production. This sparked investor concern about more supply at a time when demand is uncertain. Brent crude ended the day at $60.23 a barrel, down by $1.06 (1.73%) or $1.06 per barrel. The Taiwan dollar has seen a second session of strong gains against the U.S. Dollar, which reached a low of 28,815 and last traded at 29,104. The increase in the Taiwan dollar fueled speculation that Asian currencies would be revalued to gain concessions from the U.S. The dollar index measures the greenback in relation to a basket including the yen, the euro and other currencies. The price of 99.82 fell by 0.06%. The dollar fell 0.8% against the Japanese yen to 143.77. The yield on the benchmark U.S. 10 year notes increased 2.9 basis to 4.349% from 4.32% on Friday. Meanwhile, the 30-year bond's yield rose 4.1 to 4.8356%. The yield on the 2-year bond, which is usually in line with expectations of interest rates for the Fed and moves as such, increased 0.3 basis points from Friday's 3.84% to 3.843%. Spot gold increased by 2.82%, to $3,331.35 per ounce. U.S. Gold Futures rose by 2.42% to an ounce of $3,310.10.
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Diamondback reduces its capex plan and production forecast amid macroeconomic uncertainties
Diamondback Energy, a U.S. shale oil and gas producer, lowered its production and capital budget forecasts for 2025 on Monday as global energy demand is impacted by macroeconomic uncertainty. The tariffs imposed by Donald Trump have increased uncertainty in the oil industry. A trade war that follows is expected to reduce global economic growth, and, therefore, energy demand. The company announced that it would reduce its capital budget for 2025 by approximately $400 million, to between $3.4 and $3.8 billion. The company said that during the current period of macro-instability, it would drill and complete fewer oil wells to maximize its free cash flow. Diamondback expects to produce between 857,000 and 910,000 barrels of oil-equivalent per day (boepd) in 2025, down from its earlier forecast of between 883,00 and 909,000 boepd. The company has also stated that it will continue to maintain its current level of activity, or even reduce it further if the oil price continues to fall or worsens. The output of the U.S. Shale Producer will remain high despite the reduction. Diamondback's first-quarter production increased by 84.5% over the previous year to 850.656 boepd. According to LSEG, the higher production, coupled with the increase in natural gas prices, helped Diamondback achieve an adjusted profit per share of $4.54 for its first quarter. This was better than Wall Street's expectations of $4.13. The average price of natural gas in the third quarter was $2.11 per 1,000 cubic feet, a more than two-fold increase from the previous year. The average natural gas price has risen in recent quarters. It reached a two-year-high on March 10 due to record flows of LNG export facilities, and fears over supply as we approach the summer season. (Reporting from Tanay Dhumal, Bengaluru. Editing by Leroy Leo.)
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Ford withdraws its guidance and warns that Trump's tariffs will cost it $1.5 billion
Ford Motors suspended its annual guidance Monday due to uncertainty surrounding U.S. president Donald Trump's new tariffs. The company said the levies could cost it about $1.5 billion before taxes and interest in adjusted earnings. The Dearborn, Michigan, automaker forecasted earnings before taxes, interest, and other expenses of between $7.0 billion and $8.5 billion by 2025. This forecast does not include tariffs. Ford's Chief Financial Officer Sherry house said that the company is on track to achieve this guidance, even if tariffs are not a factor. House stated, "We focus on managing what we can control." Ford executives have said that they are suspending their outlook until they know more about the impact of retaliatory duties and how consumers will react to any price hikes. Morningstar Research analyst David Whisto said: "It is a bold move to withdraw the guidance after GM revised its guidance, including tariffs. To be fair, things are still very uncertain." Ford announced its earnings after the end of the U.S. trading session. Its shares dropped about 2% after-hours. Ford's earnings-per-share fell to 14 cents during the first quarter. This was a far cry from the LSEG analysts estimate of 2 cents, but still a significant drop compared to 49 cents a full year ago. Ford executives claimed that cost and quality improvements allowed the company to beat expectations. The automaker warned earlier this year that production disruptions due to new product launches in several plants would affect the first-quarter results. The net income dropped sharply from $1.3 billion to $471 millions a year ago. Ford's quarterly revenue dropped 5%, to $40.7 billion. This was better than the expected $36 billion. The earnings were boosted as consumers bought vehicles in a rush, fearing that tariffs could lead to higher prices. Ford was among a handful of automakers who offered incentives to gain market share during the buying frenzy. Ford estimated that tariffs will add $2.5 billion to its costs for the entire year. This is primarily due to expenses incurred from importing cars from Mexico and China. Ford has suspended its automotive exports to China but continues to import vehicles from China like the Lincoln Nautilus. Ford has said that it was able to save about $1 billion by taking various steps, such as transporting cars from Mexico to Canada via bond carriers so they would not be subject to U.S. Tariffs, House stated. According to some estimates, Trump's 25% tariffs for automotive imports will cost automakers in the U.S. more than $100 billion this year. Last month, the president granted a reprieve on levies on auto parts. This allowed auto companies to receive credits of up to 15% of value of domestically assembled vehicles, and relief from other duties. This month, GM reduced its profit forecast. It said that tariffs would cost it as much as $5 billion. Investors prefer Ford to GM because Ford sells more cars in the U.S. and is assembled there, compared to GM. Stellantis, a Jeep manufacturer, has also suspended its forecasts due to the uncertainty surrounding tariffs. Ford's electric vehicle sales are suffering significant losses, on top of the headwinds caused by Trump's trade policies. This year, the automaker projected losses up to $5.5 Billion on its EV operations and software. The automaker has already suffered losses of more than $10 billion since 2023. Exclusively reported, Ford has ended an expensive effort in order to build a new generation electrical architecture called FNV4 for its vehicles after delays and rising costs stymied the development. Ford Pro, Ford's profitable segment of commercial vehicles, reported first-quarter revenues of $15,2 billion, a 16% drop from the previous year. Ford's gasoline engine division reported quarterly revenue of $11 billion. Model e, which includes software as well as EV efforts, reported revenue of $1.2billion for the quarter. Reporting by Nora Eckert, Nathan Gomes and David Gregorio.
Peru stops mining in the north after 13 miners are killed
Dina Boluarte, the president of Peru, announced on Monday that mining in Pataz, a district in northern Peru, would be suspended for 30 day after illegal miners kidnapped 13 gold workers and killed them.
The Peruvian government plans to establish a military base in the area and impose a curfew from 6 pm to 6 am.
Boluarte stated that "the armed forces will be taking control of the area in which Poderosa operates."
Poderosa miner said on Sunday that police had recovered the bodies of thirteen workers who were abducted last month by a local mining firm.
Peru is the third largest copper producer in the world, but its deposits are mostly located in the south. In the north, gold and silver is mined.
Poderosa claimed that criminal gangs have killed nearly 40 people in Pataz, including contractors and artisanal miners.
Illegal miners have taken control of several areas controlled by Poderosa since 2020.
Due to the attacks against Poderosa, there was already a heavy police and army presence in the area.
Morge Montoro said that the 30-day pause may be extended. (Reporting and writing by Marco Aquino, Kylie Madry, Editing by Gabriel Araujo & Alexander Villegas).
(source: Reuters)