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Two rival governments could divide Sudan
Political analysts claim that Sudanese Paramilitaries have formed a parallel government with the army of the country, further pushing Sudan towards de facto splintering. Sudan's army, along with the paramilitary Rapid Support Forces(RSF), are fighting to control al-Fashir, the last foothold of the army in western Darfur, and an RSF stronghold. Last week, a coalition led by RSF announced members of a new parallel government. Analysts say that while it hasn't yet established institutions, or been recognized, a possible breakaway from its territory would precipitate a new split in Sudan after the 2011 secession by South Sudan. How did this happen? In 2021, the Sudanese army and RSF worked in tandem to remove the civilian politicians that had taken over the government of President Omar al-Bashir two years before. In April 2023 war broke out over the integration of RSF fighters in the armed forces. The RSF seized large parts of the country. However, the army forced them to leave the capital Khartoum earlier this year and move towards the west. The RSF has been calling the internationally recognized army-led administration illegitimate throughout the war and has taken measures to create its parallel administration. In May, the military installed Kamil Idris as prime minister. He has since appointed ministers for a new “Hope Government”. The formation of his cabinet has been hampered by disagreements between army leaders, and former rebels who have joined forces with the RSF. Some cabinet members have also ties to Bashir’s former party. This reflects the army's desire for Islamist support. WHAT DOES EITHER SIDE CONTROL? Sudan's army, from its capital during the war in Port Sudan at the Red Sea has retained control over Sudan's eastern and northern states. It also regained control of its central states, and Khartoum where it plans to relocate. RSF seized the majority of Darfur, with the exception Al-Fashir where fighting continues and mass hunger is a result. The paramilitary is also aligned with the SPLM-N, a rebel group that controls large swathes in South Kordofan on the border of South Sudan. West Kordofan, North Kordofan, and the oil-rich West Kordofan are still contested. The RSF recently expanded its international borders by taking control of the "border triangle" in the north with Libya and Egypt. HOW DID RSF BUILD ITS GOVERNMENT? The RSF, along with other Sudanese political groups and rebels, formed the coalition "Tasis", aiming to create a single government in all of Sudan. The coalition signed the constitution in May. It established a cabinet and a parliament. In July, the coalition announced that it had formed a presidential Council led by RSF chief Mohamed Hamdan Dagalo with Hilu, of the SPLM-N, as his deputy. In addition to the regional governors, there was also a former government official Mohamed Hassan al Taishi as prime minister. What does this mean for Sudan? Analysts believe that the formation of parallel governments may lead to a stalemate similar to Libya or worse, fragmentation as the RSF and other armed forces claim their territories. Both governments may also find it difficult to get the international support they need to rebuild Sudan’s economy and infrastructure. The U.N., and African Union, have both condemned the parallel government of the RSF. The RSF has also seen a proliferation of militias, which have helped the paramilitary to advance but are also difficult to control. Nyala in southern Darfur is the seat of RSF government. It has witnessed a rise in crime, including kidnappings. Residents and soldiers have also protested. The area has been frequently targeted by air and drone attacks. The coalition of the army, which includes former rebel groups and tribes militias, is also fragile. While the army is internationally recognized, and has support from regional powerhouses such as Egypt; many countries are still reluctant to deal with them because of the coup of 2021 and Islamist influence. The United States has also sanctioned Abdel Fattah al-Burhan, the army chief. (Reporting and editing by Helen Popper; Khalid Abdelaziz, Nafisa Altahir)
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Exelon claims that the potential demand for data centers is greater than 30 gigawatts
Exelon, a major U.S. electric utility, has 33 gigawatts worth of data centers interested in connecting to their system. The company is exploring its options to add new power supplies to keep up with the demand explosion, executives at the company said on Tuesday. Electric utilities are receiving massive requests for energy to power Big Tech's AI data centers. This is driving U.S. electricity consumption to new heights and putting pressure on the grid. Three gigawatts of power is enough to run all the homes in California combined with New York, Texas and New York. Exelon reports that 17 gigawatts of this amount are already connected to its system. Another 16 gigawatts, which will be studied, are expected to join the formal pipeline before the end the year. Exelon provides service to more than 10 million customers via six transmission and distribution utilities that are fully regulated. Exelon, a Chicago-based company, is considering whether it can build and own power plants. Electric utilities are prohibited from doing so in several states of the United States. In these states, the regulated utilities are responsible for power lines while independent power producers operate and own power plants. In some states, such as Pennsylvania and New Jersey there are proposals to allow utilities to own and develop power plants. Calvin Butler, Exelon's CEO, said during a conference call with investors that "we want to be part the solution." "The demand is not met by the supply." Exelon's overall revenue for the second quarter was $5.43 billion. This compares to an average analyst estimate of $5.38billion, according to LSEG data. The earnings at PECO, Pennsylvania's largest natural gas and electric energy company, increased by 51%, to $136 millions, during the quarter. The earnings of its Commonwealth Edison unit, the largest electric utility company in Illinois, dropped 15.6% to $228 millions. The company confirmed its adjusted full-year profit forecast for 2025 of $2.64 - $2.74 per share. Analysts had expected $2.69 per stock. Exelon reported adjusted operating earnings per share of 39 cents for the period April-June, compared to analysts' estimates of 37 cents. Reporting by Laila Kerney in New York; Pranav Mathur, Katha Kalia and Aurora Ellis in Bengaluru. Editing by Shreya Biwas, Shailesh Kumar and Aurora Ellis.
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President says that state-owned partnerships could take over the ports operated by CK Hutchison in Panama.
Panama's president Jose Raul Mulino stated on Thursday that public-private partnerships may take over two important ports near the Panama Canal if a court invalidates CK Hutchison's contract to operate them. CK Hutchison owns 90% of the local Panama Ports Company. This company had a 25 year concession to operate Balboa Port and Cristobal Port, which are located at the ends of the Canal. The concession was renewed in 2021. The contract is at the heart of a dispute after U.S. president Donald Trump threatened this year to take control of the waterway because China has influence over Panama's marine industry. CK Hutchison wants to sell its stakes in the Panamanian firm as part of a massive global deal Two suits were Filed with the Supreme Court The Panamanian Comptroller-General's Office filed a complaint this week, seeking to declare the agreement as unconstitutional, and nullify it on the grounds that the renewal had not followed the required legal steps including the Comptroller’s approval. Mulino said at a press briefing that he did not see the Panama Ports contract continuing, whether it was amended or not. Mulino said, "We'll wait for the decision," Mulino said in reference to the lawsuits. The comptroller has publicly criticized the contract for alleged irregularities committed by the former government, and the insufficient income generated by the deal to Panama. However, the full results from a recent audit conducted by his office are not yet available. Legal challenges in Panama have complicated a highly sensitive diplomatic plan by a consortium headed by U.S. asset management firm BlackRock, to purchase a significant portion of CK Hutchison’s global ports business. The deal has been praised by Washington but criticized by China. The deal has been made Increasingly politicized A U.S.-China Trade War is underway. Beijing claims it has important national interests in this transaction, and that the proposed deal is a betrayal to the country. The government of Panama is looking at partnerships with the state to operate a copper mine that was previously operated by Canada’s First Quantum Minerals. Their contract has been declared invalid. Unconstitutional Mulino explained that the idea was still in draft form, and would cover the ports as well as the mines through partnerships with state. (Reporting and writing by Elida Moreno and Marianna Pararaga; editing by Brendan O'Boyle).
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Judges ask if Trump tariffs authorized by emergency powers
On Thursday, U.S. appellate court judges questioned whether President Donald Trump’s tariffs could be justified by his emergency powers after a lower federal court ruled that he had exceeded his authority in imposing sweeping duties on imported goods. The U.S. Court of Appeals, Federal Circuit, in Washington, D.C., examines the legality of the "reciprocal tariffs" that Trump imposed against a wide range of U.S. trade partners in April, and tariffs imposed by Trump in February on China, Canada, and Mexico. Judges pressed Brett Shumate, the government's lawyer, to explain the International Emergency Economic Powers Act, a 1977 law that was historically used to sanction enemies or freeze their assets. Trump is the first President to use IEEPA for tariffs. The judges often interrupted Shumate and hurled a barrage of questions at his arguments. One of the judges stated that "IEEPA does not even mention tariffs." Shumate stated that the law gives "extraordinary" powers in an emergency. This includes the power to completely stop imports. He said IEEPA allows tariffs to be imposed because it gives a president the ability to "regulate imports" in a time of crisis. The states and companies that challenged the tariffs argued they were not allowed under IEEPA, and that Congress and not the President has the authority to impose tariffs and taxes. Neal Katyal is a lawyer representing the businesses. He said that the government's argument claiming the word "regulate", includes the power of taxation, would be a vast extension of presidential powers. These arguments, which come just one day before Trump is planning to raise tariffs on imports from almost all U.S. partners, are the first time that a U.S. court has tested the extent of Trump's tariff authority. The president's foreign policy has been centered around tariffs, which he uses aggressively during his second term to leverage trade negotiations and push back on what he calls unfair practices. Trump said that the tariffs in April were a reaction to persistent trade imbalances between the United States and a declining manufacturing power. He said that the tariffs on China, Canada and Mexico are justified because these countries do not do enough to prevent illegal fentanyl from entering U.S. border. These countries deny this claim. Shumate cited an appeals court ruling from 1975 that authorized President Richard Nixon to impose a 10% surcharge on all imported goods in order to slow inflation. The decision also stated that the president was not authorized to impose "whatever rates of tariff he considers desirable." Shumate said that courts could not review a president’s actions under IEEPA, or impose any additional limitations that were not in the law. Several judges stated that this argument would essentially allow IEEPA to overwrite other U.S. law related to imports and tariffs. Katyal said that the Trump administration's arguments ignored the limited nature of Nixon’s tariffs as well as changes in the law since 1970s. Katyal stated that "no trade law has ever been interpreted in the past 200 years to give this power to the president." A panel consisting of eight judges appointed by Democratic Presidents and three by former Republican Presidents is hearing the case. The court's decision will not be made for some time, but the losing party is likely to appeal immediately to the U.S. Supreme Court. TRADE NEGOTIATIONS Tariffs have become a major source of revenue for the federal government. In June, customs duties quadrupled to $27 billion. This was a record. Through June, they had topped $100 billion in the current fiscal. This income could be vital to offset the lost revenue due to Trump's tax law, which was passed earlier this month. Economists warn that the duties could increase prices for U.S. customers and decrease corporate profits. Trump's intermittent tariff threats have disrupted financial markets, and U.S. businesses' ability to manage their supply chains, production and staffing, and set prices. A three-judge panel of U.S. Court of International Trade on May 28 sided with Democratic states and small business that challenged Trump. The court ruled that the IEEPA didn't authorize tariffs based on long-standing trade deficits. Federal Circuit allowed tariffs to be in place until it considered the appeal of the administration. The case won't affect tariffs imposed under traditional legal authority such as steel and aluminum import duties. Following smaller agreements with Britain and Indonesia, the president announced recent trade deals which set tariff rates for goods imported from Japan and the European Union. Trump's Department of Justice argued that limiting Trump's tariff authority would undermine ongoing trade talks, while other Trump representatives have stated that negotiations continued without much change following the initial setback at court. Trump has set a date of August 1, 2018 for the introduction of higher tariffs against countries that refuse to negotiate new trade agreements. At least seven other lawsuits have been filed against Trump's IEEPA citation, including those brought by small businesses in California and other states. In one of these cases, a federal judge in Washington, D.C., found against Trump. No judge has so far backed Trump's claim to unlimited emergency tariff authority. Dietrich Knauth, Noeleen Walder, Leslie Adler and Deepa Babington edited the article.
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Saudi Arabia's budget deficit falls to $9.21 billion due to oil and other revenues rising
Saudi Arabia's second-quarter budget deficit shrank to 34.534 billion Saudi riyals (9.21 billion dollars), a 41.1% decrease from the first quarter as revenues, including oil, rose. The ministry reported that oil income increased by 1.28%, reaching 151.734 billion Riyals. In the quarter from April to June, Saudi Arabia, the world's largest oil exporter, saw its total revenue rise by 14.4%, to 301.595 riyals. Of this, 149.861 riyals were derived from non-oil sectors, while spending on public services rose 4.28%, or 336.129 riyals, to be a quarterly increase of 4.28%. Data from the Joint Organizations Data Initiative showed that the kingdom's oil output in May was the highest in three-months. The OPEC+ group, which includes OPEC, Russia, and other allies, began unwinding cuts of 2,17 million barrels a day (bpd), in April, with a boost in production of 138,000 bpd. This was followed by more increases in the recent months despite the falling price of oil. The kingdom's first-quarter budget deficit increased significantly year-on year to $15.65bn from $3.30bn in the same period last year, due to a drop of 18% in oil revenues. Saudi Arabia is expected to have a budget deficit of $27 billion in this year due to lower oil prices. The country is still pushing ahead with a massive transformation programme called Vision 2030, which aims to diversify revenue sources and wean the economy off its dependency on oil. The 12-day war between Israel and Iran, which began in June, increased geopolitical risks in the Gulf region and raised concerns about regional stability. This could threaten foreign investment and tourism to the Kingdom. However oil prices briefly rose by as much as 7% when the war broke out on June 14. The International Monetary Fund increased its GDP growth forecast of Saudi Arabia for 2025 to 3.5% in June from 3%. This was partly due to the demand for government-led initiatives and the OPEC+ plan to gradually end oil production cuts. The Saudi finance ministry released a statement that stated the country's public debt was 1.38 trillion riyals at the end of second quarter. $1 = 3.7511 Riyals (Reporting and writing by Yomna Alashray and Enas Ehab in Cairo; editing by Andrew Cawthorne, Susan Fenton and Nayera Abdallah)
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Zimbabwe economy on track to grow by 6% as it recovers from the drought
Mthuli Ncube, Zimbabwe's Finance Minister, said that the country is on course to achieve its 6% forecasted economic growth by 2025. This will be aided by a good agricultural production and high commodity prices. In the first half of this year, the economy of Southern Africa has begun to show signs of recovery following a severe currency crisis and drought in 2024 which pushed the GDP growth down below 2%. Ncube, in his mid-year review of the budget, told the parliament that "given the positive developments in the economy during the period from January to June we are confident the projected growth of 6% in the National Budget 2025 is achievable." He said that "all sectors of the economy will record positive growth by 2025. This is mainly due to a favorable agriculture season, increased electricity generation, a stable exchange rate, and lowered inflation rates." He didn't give any updates on the budget, which was projected to be 0.4% of the gross domestic product by 2025 in the budget forecast made last November. Zimbabwe's fiscal situation remains under pressure due to grain imports and drought relief expenditures. The public sector wage bill is also a factor. Analysts say that while the government has collected more revenues than it did in the same time period last year they believe it will be difficult to contain the deficit without new fiscal measures. The ZiG currency was launched in April 2024 as a replacement for the Zimbabwe dollar. It has been largely stable in relation to the U.S. Dollar, but it is still overshadowed due to the widespread use of dollars in daily transactions. Ncube reaffirmed the government's commitment towards the gold-backed currency and said that the currency has benefited from strict monetary and fiscal policy. (Reporting and editing by Nellie Pettison; Chris Takudzwa Muronzi)
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What's the significance of Russia claiming to have captured the Ukrainian town Chasiv Yar?
After nearly 16 months, Russia claimed to have taken control of the devastated town of Chasiv Yar (in eastern Ukraine), an assertion that Kyiv branded "propaganda". Here are some key facts about Chasiv Yar (also known as Chasov Yar by Russians) and the long struggle for its control that began in March/April of 2024. What is chasive yar? Chasiv Yar, a quiet ravine with a population of over 12,000 before the war, is located in the industrial Donbas region in Ukraine's Donetsk Region, one of four areas that Moscow claims to have annexed by 2022. Kyiv has called this annexation an illegal land grab. The town's economy pre-war was centered on an industrial complex that produced bricks and reinforced concrete products. It was located on higher ground and served as an artillery forward base as well as a point of regrouping for the Ukrainian Army. The Russian military considered it one of Ukraine’s strongest strongholds because of its location, elevation, terrain, and the factories and apartment buildings where Ukrainian forces had been able to dig into. Why does Russia want it? If confirmed, the Russian capture of the town would help Moscow in its effort to surround the "fortress-city" of Kostiantynivka, which it's trying to envelop with a pincer move, and remove an obstacle that had become an obstruction to the army's westward advance across the rest Donetsk. Sloviansk and Kramatorsk are listed by Russian analysts as "fortress cities" that can be reached from Chasiv Yar, if Moscow is able to get there. Kyiv, however, is determined not to allow this. Analysts in Russia say that their military will use Chasiv Yar to attack Ukrainian forces in Donetsk's northern region with artillery fire and drones and to disrupt Ukrainian supply lines. Rybar, a war blogger, said that holding the ground and moving northwards would not be an easy task. What was the battle for chasiv yar like? Both sides have military analysts who say that the battle is one of longest and most grinding of the war with many but not disclosed casualties. The Russian Defence Ministry announced on Thursday that its paratroopers have cleared over 4,200 structures and buildings in the push to take town. They had also covered more than 12 miles of distance under Ukrainian artillery fire and drones. Could not confirm this assertion. Ukraine claims that its fierce and long-lasting resistance at Chasiv Yar demonstrates how it was able to slow down and inflict severe casualties on an numerically superior force, with the aid of its drone units. How important would its fall be? Ukrainian analysts have downplayed the importance of Chasiv Yar and suggested that Russia taking it would only be a Pyrrhic win given the high price Kyiv forced Moscow to pay and the length of time it was able to resist Russian forces. Some Russian analysts claim that the capture of the town would be more of a tactical than strategic victory. Sergei Markov said that the battle has been going on so long, Chasiv Yar's strategic importance had diminished. Markov wrote in Telegram that "the capture of the city is symbolic: this could be how the war will continue for many more years - slowly and slowly the Russian army advances." What does CHASIV Yar look like now? The town is a shambles and has been pulverized by Russian forces after heavy shelling and air strikes, glide bombs and drone attacks. Ukraine claims that a Russian airstrike on a residential building in the city in 2022 resulted in at least 43 deaths. Russia claims that the dead were Ukrainian soldiers. Most of the residents of the town were evacuated when its utilities, such as power, water and gas, were destroyed. According to Serhii Chus, head of the town’s Ukrainian military administration, only 304 residents were still in the area in November of last year. They were sheltering in their basements. The Russian military announced on Thursday that it had evacuated 65 civilians. Andrew Osborn, Andrew Heavens and Andrew Osborn contributed to the reporting.
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Gold as a safe-haven amid tariff uncertainty before August 1 deadline
Gold prices increased 1% on Friday as traders sought out the safe-haven asset amid continued tariff uncertainty as President Donald Trump's deadline of August 1, to conclude negotiations, approaches. As of 855 a.m., spot gold rose 1% to $3,308.07 an ounce. ET (12:55 GMT). U.S. Gold Futures rose 0.3% to $3.306,10. We've seen a rise in trade uncertainty, as we near the August 1st tariff deadline... a slight revival of safe haven bids," said Peter Grant. The midpoint is around $3,312/oz. We tested this level today. I would probably be more optimistic if the week's highs were to surpass those of last week. Trump announced a series of tariffs on Wednesday on the import of goods and copper from Brazil and South Korea. The deadline for increased tariffs in the U.S. is August 1. Inflation in the United States increased in June, as import tariffs began to increase the price of certain goods. The PCE Index rose by 0.3% in June after a 0.2% increase that was upwardly revised in May. Fed Chair Jerome Powell made comments following the decision that undermined confidence in the idea that borrowing costs will begin to drop in September. In a low interest rate environment, gold is an asset that does not yield any income. Investors are now waiting for the U.S. Non-Farm Payrolls Data on Friday to get more clues about the Fed's interest rate path. Silver spot fell by 1.3% to $36.66 an ounce, the lowest level since July 7. Platinum dropped 0.5% to 1,306.98 while palladium rose about 0.9% to 1 215.7. Jim Wyckoff said that it would not surprise him if the strong selling pressure on silver futures was partly due to the sympathy selling that occurred amid the massive copper market collapse seen in the last two days. Trump shocked the market by announcing on Wednesday that the U.S. will impose a tariff of 50% on copper pipes and wires, which has caused the COMEX copper exchange to drop more than 20%. (Reporting from Sarah Qureshi in Bengaluru and Noel John; editing by Shreya Biwas)
Ford shares fall 4% following the bell as it raises its projected tariff impact.
Ford Motors said that U.S. Tariffs on Imported Vehicles, as well As Materials Like Steel and Aluminum, Will Cost More Than Expected For The Year. Ford's Shares Slid About 4% In After-Market Trading.
Ford said that its second-quarter earnings were hit by tariffs to the tune of $800 million. This was a smaller impact than other U.S. competitors due to Ford's strong manufacturing base in the United States. Ford increased the upper range of its projected impact on gross revenues due to tariffs for the entire year by $500 million to $3 billion.
Sherry house, Ford's Chief Financial Officer, said that Ford increased the projection because tariffs on Mexico and Canada remained higher than expected for a longer period of time. She also cited increased levies on steel and aluminum.
Dearborn, Michigan, automaker issued guidance on annual results Wednesday after suspending them in May for a month to assess the impact U.S. president Trump's tariffs.
Ford has announced that it will now record full-year adjusted profits before interest and tax of $6.5 billion to $7 billion, down from the February 2025 projections of between $7.0 and $8.5 billion.
The auto giant beat LSEG's expectation of 33 cents for the last quarter. Ford reported a $36 million net loss in the third quarter, primarily because of special charges related cancellation of a three row electric SUV and field service action from a $570,000,000 recall.
Ford reported revenue of $50.2billion for the third quarter, an increase of 5% over the same period last year. Ford has gained market share by aggressively discounting its vehicles and offering a "zero zero zero" campaign that offers customers a $0 deposit, zero percent for 48 months and no payments for the initial 90 days.
The CFRA Research analyst Garrett Nelson wrote in a report that "the substantial revenue outperformance shows Ford's pricing strength, but the margin compression indicates underlying cost pressures are still problematic."
These deals led to a 15.5% rise in gasoline-powered cars during the quarter. In the third quarter, shoppers were also interested in hybrid offers.
Ford reported that its results for the June quarter were $800m lower due to Washington's tariffs. General Motors' competitor reported a more severe tariff impact, with a $1.1billion hit to its quarter results, mostly from the imports of its entry-level Chevrolets and Buicks made in South Korea.
GM estimates a tariff impact of $4 to $5 billion for the entire year. It plans to offset 30 percent of this expense. Ford said that it plans to offset $1 billion in gross tariff costs.
Stellantis, a Jeep manufacturer, said that tariffs are expected to increase expenses by $1.7 billion for the entire year.
The White House didn't respond to an email asking for comment on automakers' projected sales. Trump has in the past said that the levies would bring manufacturing and jobs to the U.S.
Ford produces around 80% domestically of the cars it sells in America, which is about 25% more than the two Detroit rivals. This was revealed by a review of imports conducted by business analytics firm GlobalData.
This foundation may have made the company more resistant to tariffs but it is still facing steep levies for aluminum, steel, and copper, which has rocked industry. Executives have also said that the shortage of rare earth magnets in China has caused production to be disrupted this quarter.
Ford's EV investment and quality problems remained its biggest challenges. Ford had said earlier in the year that it anticipated a loss of up to $5.5billion on its EV business and software by 2025, before tariffs were imposed. The segment recorded an operating loss of $1.3 billion for the third quarter. The elimination of the $7,500 tax credit for consumers in September will likely further dampen sales growth.
Automaker also faces costly quality problems and a record number of recalls. Jim Farley, Ford CEO since 2020, has made reducing these problems a top priority. (Reporting from Nora Eckert and Nathan Gomes in Bengaluru, Editing by David Gregorio.)
(source: Reuters)