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Republican holdouts huddled at White House to discuss Trump's tax cut bill
On Wednesday, a few hardline Republicans from the U.S. House of Representatives, worried that President Donald Trump’s tax-cut bill did not cut spending enough, headed to the White House as the party struggled for unity. The White House confirmed that House Speaker Mike Johnson would attend the meeting at 3 p.m., 1900 GMT, one day after Trump visited Capitol Hill personally to urge the Republican Party to unite around a bill to extend and add to his tax cuts of 2017. Analysts from nonpartisan groups have predicted that the U.S. debt of $36.2 trillion will increase by $2 trillion to $5 billion over the next 10 years. Last week, credit rating agency Moody's stripped the U.S. Government of its highest-tier rating due to the nation's increasing debt. Hardline Republican Andy Harris, who stood with eight other hawks in a Wednesday press conference, said: "We are encouraged by the progress made over the last 24 hours." "I believe this package will pass." "I don't believe it could be done now." Johnson said: "There's a chance to vote today." He acknowledged that hardliners had resisted the agreement on state and local tax deductions, a key issue for Republican legislators from New York and California who are crucial to his small majority. Hardline Republican Representative Chip Roy, of Texas, told reporters that negotiations were progressing, but he still had a way to go before supporting the bill. Around 1 am EDT (0500 GMT), the House Rules Committee, which is responsible for approving legislation in the House, began debating it. The House's success would pave the way for the expected weeks of debate in the Senate. The Republicans who control both chambers are waiting on the overall package of amendments to the bill from their leadership, which is intended to unite the various factions within the party. Democrats have proposed over 500 amendments. If Congress passes this legislation, some food and health benefits would be reduced for low-income Americans. Green-energy programs would also be cancelled, and tens and tens billions of dollars could go to immigration enforcement. Trump met with Republican legislators on Tuesday in an attempt to convince holdouts to accept what he called a "big beautiful bill," however, the visit did not sway a wide range of lawmakers who are opposed to certain features. Johnson is in a tight spot, since his party has a 220-212 narrow majority. A few "no" vote from his side can scuttle this bill that Democrats claim favors the rich and cuts social programs. The bill would extend Trump's 2017 tax cuts, which were his signature achievement during his first term in office. It also added tax breaks for income from tips and overtime wages that were part of Trump's populist push last year on the campaign trail. Analysts say that it could increase the federal debt by $2 trillion to $5 trillion. Representative Jason Smith, Republican Chairman of the House Tax-Writing Committee, stated during Wednesday's debate that "failure was not an option." "The American people voted to create a new America, where families and workers will prosper again. Main Street will grow and rural towns will flourish again. And America will win again." Democrats claimed that the bill benefits wealthy people disproportionately and cuts programs for working families. Gwen Moore said, a Democrat who is a member of the tax-writing panel: "We are going to ask Americans for credit cards to pay tax cuts to billionaires." "This bill is ugly, despite its deficits, because it's a betrayal to the contract we made with our American people and, in particular, our babies and our working people," said Gwen Moore, a Democrat on the tax-writing committee. DEBT CEILING Medicaid, the health care program for low income households, has been a major sticking-point. Fiscal hawks have pushed for tax cuts that would offset some of the costs. Moderate Republicans, however, say this will hurt the voters who they need to support them in the midterm elections for the Congress in 2026. A handful of Republican legislators, mostly from states with high taxes, such as New York and California are also opposed to the bill. They want an increase in the proposed cap for deductions on state and local tax. The bill would increase the debt ceiling of the United States by $4 trillion. The limit must be addressed by the summer of this year or lawmakers risk triggering an uncontrollable default. (Reporting and writing by Bo Erickson, David Morgan and Andy Sullivan. Editing and proofreading by Scott Malone Daniel Wallis and Howard Goller.
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Iran and the U.S. face each other without a Plan B when nuclear redlines collide
Three Iranian sources stated on Tuesday that the clerical leaders lack a clear plan in case efforts to settle a decades-long conflict fail. Iran's "Plan B" may be to turn to China or Russia if negotiations fail due conflicting redlines, according sources. However, with Beijing and Washington engaged in a trade war and Moscow distracted by its war in Ukraine the backup plan of Tehran appears unsteady. "Plan B" is to continue with the strategy prior to the start of the talks. Iran will not escalate tensions and is prepared to defend itself, a senior Iranian official stated. "The strategy includes strengthening the ties with allies such as Russia and China." Ayatollah Ayatollah Khamenei, Iran's supreme leader, rejected the U.S. demand to stop uranium enrichment on Tuesday as "excessive" and "outrageous", warning that talks would not produce results. After four rounds, there are still a number of obstacles to overcome. Tehran will not ship its entire stockpile of highly enriched Uranium abroad, or even engage in talks about its ballistic missile program. This is according to two Iranian officials and an European diplomat. Oman's Foreign Minister said that the fifth round of the World Cup will be held in Rome on May 23. A lack of trust between the two sides, and Donald Trump's decision in 2015 to withdraw from an accord with major world powers, has made it more important for Iran to get guarantees that Washington won't renege on any future agreement. Iran's clerical leadership is facing mounting challenges - including energy and water shortages; a falling currency; military losses in the region and growing fears that Israel will attack its nuclear sites. All of these are exacerbated by Trump’s hardline policies. Trump has been reviving a "maximum-pressure" campaign against Tehran, which includes tightened sanctions and threats of military action, since February. According to the sources, Iran's leaders "have no other option" but to sign a new agreement in order for them not face economic chaos that could threaten their rule. The Islamic Republic has been exposed to anger by the public after protests against social repression, economic hardship and harsh crackdowns. Iran's economy will not recover without lifting the sanctions that prevent free oil sales, and allowing access to funds. The second official said, as did others, due to the sensitive nature of this issue. The Iranian Foreign Ministry was not available to comment immediately. A THORNY TRAIL Wendy Sherman, former U.S. The former U.S. Undersecretary of Political Affairs, who led the U.S. negotiation team that achieved the 2015 agreement between Tehran and six major world powers, stated that it was impossible to persuade Tehran to "dismantle their nuclear programme and to give up on their enrichment - even though this would be ideal". She said: "So, that means that they will reach an impasse and that we could face war. I don't believe, quite frankly that President Trump is looking forward to that because he campaigned for a peace-oriented president." Even if the enrichment dispute narrows, lifting of sanctions is still fraught. The U.S. favors gradual removal of nuclear-related restrictions, while Tehran insists on immediate removal. Since 2018, sanctions have been imposed on dozens of Iranian institutions that are vital to the country's economy. These include its central bank, national oil company and other important Iranian institutions. Sherman responded that Iran would "continue to sell oil to China, India, and other countries, in order to circumvent sanctions". China has been Iran's main oil buyer despite the sanctions. This has helped to stave off an economic collapse. But Trump's increased pressure on Chinese trade entities, and tankers, threatens to disrupt these exports. Analysts warn of the limits to China and Russia's assistance. China may insist on lower prices for Iranian oil as the global demand for oil weakens. Beijing and Moscow cannot protect Iran from unilateral U.S. or EU sanctions if talks fail - something both Tehran and Washington are hoping to avoid. France, Britain, and Germany have all warned that they will reimpose U.N. sanction if a deal is not reached quickly, despite not being part of the U.S. Iran talks. According to the U.N. resolution of the 2015 nuclear agreement, the E3 has until October 18th to activate the "snapback" mechanism before the resolution expires. Diplomats and a document seen may suggest that the E3 nations could do this by August, if a deal is not reached by then. Diplomats warn, that a deal prior to then could mean, at best, a political framework similar to 2013 in which both sides made some immediate concessions, giving time for more detailed negotiations. A senior European official stated that "there is no reason" to believe it would take less time in comparison with the 18-month period of 2013. This is especially true when you consider the fact that the geopolitical and parameters are more complex now. (Written by Parisa hafezi and John Irish, edited by Stephen Coates).
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Greenland grants a Danish-French mining group permission to mine green rock in response to Trump's interest
Greenland handed a mining permit of 30 years to a Danish and French mining group on Wednesday. The group is aiming to mine a lunar-like rock which could provide a climate-friendly option in aluminum production. Since Donald Trump, the U.S. president, expressed interest in buying it in early this year, the Arctic island, rich in minerals and oil, as well as natural gas, has attracted international attention. Greenland Anorthosite Mining, which is developing an area in western Greenland, was granted the permit. The company has the backing of French investment group Jean Boulle Group, as well as state investment funds from both Greenland & Denmark. Anorthosite, a white stone primarily composed of aluminum, calcium, and micro silica is similar to material returned by NASA's Apollo missions. GAM intends to ship crushed anorthosite into the fibreglass industry where it can replace kaolin. It is a material that can be recycled and used in light vehicles, which will reduce emissions. Naaja Naaja Nathanielsen, Greenland's Minister of Mineral Resources, said: "My goal is to have the mine operational within five years." Nathanielsen stated that despite the geopolitical spotlight the U.S. interest in Greenland has not yet translated to tangible investment. She said that despite the attention, the proposal by Trump to purchase Greenland hasn't increased interest in direct investment in the island. She said: "We've welcomed investors but haven't seen concrete examples of American money being invested in Greenland business." She said that private U.S. delegations of businessmen have been visiting the island since January, but the formal dialogue with the U.S. government has not yet begun. The dialogue with European partners is progressing. "There's no doubt that both the EU and Denmark are moving more smoothly." Nathanielsen stated that the increased cooperation was not just the result from the US administration's noise, but also of years of intense collaboration. Nathanielsen's appointment was renewed in April, after a government more pro-business came to power. The mining industry on the island has grown slowly due to a lack of investor interest, bureaucratic issues and environmental concerns. At the moment, there are only two small mining operations. (Reporting and editing by Hugh Lawson; Jacob GronholtPedersen)
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Rio Tinto’s Chile deal is a gamble on an unproven technology and a lithium price surge
Rio Tinto, a global miner, will take on one of the most challenging technological challenges in lithium's industry by leading Chile's largest project in recent years involving this battery metal. It will be working with state-run copper manufacturer Codelco. Maricunga is a pivotal moment for Rio and a turning-point for Chile. The country will now add a third lithium project to its portfolio, after years of stagnation. Codelco announced Monday that Rio will own less than half the project but will be responsible for design, construction, operations and sales. Industry experts claim that a major challenge in the separation of lithium from brine is to use a new technology called direct lithium extraction. This is supposed to be more efficient and environmentally friendly than traditional methods. This method has not been widely tested in the industry, and it has never been used at a commercial scale in Chile. Maricunga is one of the most lithium-rich flats in the world. The challenge comes amid a background of uncertainty regarding lithium prices. These have dropped nearly 90% since 2022, due to an oversupply of lithium and weak demand from EVs. Nicole Porcile is a partner with mining consulting firm Anagea. She said, "Scaling the project in line with global demand timelines remain uncertain." The ability to deliver efficiently, at scale and reliably is a key factor for the project's success and investor confidence. Rio has a DLE-pilot plant at its Rincon Project in Argentina. It also recently acquired U.S. based Arcadium which uses a combination of DLE and conventional extraction methods. A person familiar with this deal said that Rio's DLE expertise gave it an advantage over the three other final competitors in partnering with Codelco. Rio and Codelco still have to decide which DLE is most effective and sustainable at Maricunga. The person stated, "Codelco knows that they will be scrutinized and is committed to developing the best possible environmentally-friendly product." The person said that Codelco’s search for an investor in Maricunga attracted Middle Eastern and Chinese companies as well as Western ones. The construction is expected to begin in three to five year, after environmental permits have been updated. Codelco proposed a gradual switch to DLE. Rio Tinto, however, is looking to implement DLE right away, at lower costs than other DLE projects. ARGENTINA EXPERIENCE Rio Tinto said its Argentina experience provides a strong foundation for future projects. A spokesperson stated, "We are confident that our technology can be applied to Maricunga as well as other lithium flats in Chile." Rio could spend as much as $900 million for the project. Rio is the only large mining company that has placed a bet on lithium. It is accelerating its push by signing a second contract in six months, at a low price point. In a recent note, analysts at RBC Capital Markets stated that "we have not heard investors say they want to continue investing in lithium." Rio is also a contender for the Altoandinos Lithium Project in Chile, controlled by the state mining company ENAMI. ENAMI expects to announce its partner by the end May. This process is separate from Maricunga where Codelco employed Rothschild, an investment bank to find candidates. Codelco is also set to close a partnership with SQM, Chile, at the Atacama Salt Flat. Benchmark Minerals' Federico Gay said that Rio and Codelco would have to prioritize carefully. Both companies are facing too many challenges, at a time when it is difficult to justify large investments in lithium. Rio Tinto will have a majority in a technical committee, with Codelco. Once production starts, the two companies will split 50-50. This is according to an application filed with Chile's financial regulator. Reporting by Daina-Beth Solomon in Santiago, Clara Denina from London and Rod Nickel in the editing department.
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Greek gas supplier DEPA signs agreement to build power station in Larissa
The Greek gas supplier DEPA Commercial announced on Wednesday that it had signed a contract for a project worth 600 million euros ($680 millions) to build a power plant powered by gas in Larissa. The project will involve two Greek companies: energy and telecoms provider Volton, and EUSIF Larissa. DEPA stated in a statement that the 792 MW plant had received all the necessary permits. It will be constructed in Larissa's industrial area, which is located in the middle of the country. The technology will come from Mitsubishi Heavy Industries. This is a new unit for the production of electricity using natural gas. Stavros papastavrou, Greece's Minister of Environment and Energy, said that the unit would create jobs and increase competition while lowering electricity prices. Greece is increasing its renewable energy output, such as solar and wind power. It aims to close all of its coal-fired plant by the end of next year. However, it still relies heavily upon gas imports to generate electricity. (1 dollar = 0.8820 euro) (Reporting and editing by Ed Osmond, Ivana Skularac and Angeliki Koutantou)
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Unaccounted components found in Danish energy equipment imports: Industry group
Green Power Denmark, a Danish industry group, said that unidentified electronic components were found in equipment imported for Denmark's electricity supply network. An investigation is underway to find out more. These findings coincide with a growing international focus on the potential vulnerabilities of critical infrastructure, such as energy grids. Jorgen Christensen is the technical director of Green Power Denmark. He said: "It involves printed circuit boards which were supposed to be parts of components for energy supply." He said, "We don't really know what the problem is or if there are any bad intentions." The Danish Ministry for Preparedness and Resilience declined to comment whether or not an investigation was underway. The Justice Ministry, Energy Ministry and Intelligence Service did not respond to requests for comment. Christensen refused to disclose the country from which the equipment was sourced, the investigator or the capabilities of the components, including if they were intended for solar power equipment. This is very concerning. "It is vital that an investigation has begun," Walburga Hmetsberger told SolarPower Europe CEO Walburga Hemetsberger on Wednesday. Christensen stated that the components were recently discovered during a routine inspection of circuit boards which were to be installed into energy supply equipment. Christensen said that the circuit boards could have been designed to serve multiple purposes. This would explain their presence, but they shouldn't be used in equipment intended for energy infrastructure. It's possible that the supplier did not have malicious intent. "We can't tell at this stage, but it doesn't alter the fact that these parts shouldn't be present," he said. Berlingske, a Danish news outlet, first reported the findings on Wednesday. Last week, it was reported that U.S. officials had found rogue communications devices in Chinese-made inverters and battery that could bypass firewalls and disrupt power grids. Reporting by Stine McFarlane and Sarah Jacobsen, both in London. Jane Merriman edited the article.
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Gold reaches a one-week high due to weaker dollar and geopolitical uncertainties
Gold prices rose on Wednesday for the third consecutive session and reached a new high. This was aided by a weaker dollar and a demand for safe havens amid economic and geopolitical uncertainties. As of 1024 ET (1440 GMT), spot gold rose 0.5% to $3,304.17 per ounce. U.S. Gold Futures rose 0.7% to $3307.00. The U.S. Dollar fell by 0.5% against other currencies. This made gold cheaper for holders of foreign currency. Wall Street's major indexes fell and government bond yields increased as investors closely monitored a pivotal discussion over U.S. president Donald Trump's proposed tax-cut bill, which has sparked concerns about the growing debt of the country. Daniel Pavilonis is a senior market analyst at RJO Futures. He said: "We're kind of in a mid-range here between the recent high and low, waiting for more trade and tariff agreements." A poll of economists revealed that the outlook for the U.S. economic remains weak, despite the temporary cooling down of the U.S. - China trade war. Federal Reserve officials were adamant on Tuesday that they should be patient when it comes to interest rate decisions. They noted that the rising U.S. tariffs on imports are driving up prices. CNN reported Tuesday, citing several sources, that new information indicates Israel is ready to strike Iranian nuclear sites, while President Trump's Administration is in negotiations with Iran about its uranium-enrichment programme. Gold is a good investment in times of economic and geopolitical uncertainty. It also tends to perform well when interest rates are low, as it pays no interest. Bullion prices reached a record of $3,500.05 in the last month. ANZ said in a recent note that it expects the recent gold price drop to stimulate investment purchases, given the macroeconomic and geopolitical uncertainties. Silver increased 0.5% to $33.23 per ounce. Platinum rose 1.9% to $1,073,28 after reaching its highest level since October 2024. Palladium rose 1.8% to $1.031.70, a three-month high. (Reporting by Sarah Qureshi in Bengaluru; Editing by Leroy Leo)
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South Africa wants to sell crude oil at $100 per barrel before it will increase its stockpiles
South Africa will not sell more strategic crude oil until global oil prices reach $100 per barrel, according to a senior energy official. Since 2022, the country has been trying to sell crude oil. The government initially cut a fuel tax in order to protect consumers from high petrol prices and diesel. Brent crude was $99 per barrel in that year. In recent weeks, global crude oil prices have been hammered by fears that President Donald Trump's tariff war will push economies across the globe into recession. Brent traded at around $66 per barrel on Wednesday. "The oil prices are too low. If you sell today, you will empty the tanks." Godfrey Moagi is the CEO of South African National Petroleum Company. He said, "We're looking to sell around $100 per barrel." South Africa's National Treasury expects to receive 4 billion Rand ($223.2m) from the sale more crude oil in the country's reserves strategic in the fiscal year ending in March 2026. However, Moagi's remarks suggest that this may not be the case unless oil prices rise globally. After the levy reduction in 2022, the government received 2 billion rand in the fiscal year 2023/24, when Brent futures were last trading at close to $100 per barrel. South Africa's strategic crude reserves are estimated to be 7.7 million barrels. Moagi stated that since 2022, two million barrels were sold to the local petrochemical company Sasol, and another 288,000 barrels to TotalEnergies' local unit. The Strategic Fuel Fund Association is a ringfenced unit within the company Moagi.
Gold reaches a new peak after a week-long high on the back of a weak dollar and safe-haven demand
Gold prices reached a record high of more than a week on Wednesday. The rise was fueled by a weaker US dollar and a demand for safe havens as U.S. president Donald Trump was unable to convince Republican dissenters to support his tax reform bill.
As of 0830 GMT, spot gold rose 0.5% to $3,306.68 per ounce. U.S. Gold Futures rose 0.7% to $3308 60.
The market has reacted positively to the Moody's downgrade and was excited by the $3,300 level yesterday, according to UBS analyst Giovanni Staunovo.
Staunovo said that "this fiscal concern weighs on the dollar and the weaker currency is supporting the gold price."
Dollars in foreign currencies are now cheaper than gold priced in greenbacks.
In a meeting behind closed doors on Capitol Hill, Trump warned Republicans not to push for more changes to the bill that would reduce taxes and tighten the eligibility for Medicaid.
Investors were also closely watching developments in the Russia-Ukraine Peace Talks and any progress made on trade agreements as the clock ticked down towards the end of Trump’s 90-day tariff exemptions.
Last month, gold, which is traditionally viewed as a safe haven during times of political and economic unrest, reached an all-time record high at $3,500.05/ounce, thanks to central bank purchases, fears about tariff wars, and strong demand for investment.
The spot palladium price fell by 0.8%, to $1,005.70. It had earlier reached its highest level since the 4th of February.
"Palladium is in desperate need of good news. Honda's move towards hybrids, and not EVs, is a reasonable reason," said Tai Wong an independent metals dealer.
Palladium plays a major role in the catalytic converters that are used to reduce harmful emissions from internal combustion engines (ICEs) and hybrid vehicles.
Silver increased 0.3%, to $33.15 per ounce. Platinum fell 1%, to $1,043.10.
(source: Reuters)