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SpaceX receives Texas tax breaks on chip project ahead of record IPO
SpaceX received tax incentives for its proposed Terafab project in Grimes County Texas on Wednesday, despite fierce opposition from residents who warned that the development would strain the?local resources, and disrupt the rural communities. Investors see this project as an important part of 'SpaceX's' efforts to expand beyond satellite communications and rockets into advanced computing infrastructure, and chip production in the United States. SpaceX will launch the largest IPO ever next week at a valuation of approximately $1.75 trillion. Investors will be watching closely to see if the company is able to translate its dominance in the space industry into new markets related to AI and semiconductor production. After a heated hearing, which brought more than 100 people to the Grimes County Courthouse, a vote was held on three of the proposals. The courtroom was packed, with people spilling out into the hallways to hear commissioners' comments. Speakers warned that the project would strain the water and electricity supplies, harm wildlife, and permanently change the rural character of the county. One resident had to fight back tears as she described the impact industrialization could have on the environment and community. With a population of about 34,000 people, Grimes County is characterized by sprawling ranches, open land, and a quiet agricultural lifestyle. Residents say the site proposed near Gibbons Creek Reservoir has dark night skies, abundant wildlife, and a quiet rural lifestyle. As attendees left the room following the vote, one person said: "They sold Grimes County." COMMISSIONERS APROVE TAX INCENTIVES The results of the vote allow Grimes County, Georgia to negotiate tax breaks for a proposed advanced computing and chip manufacturing facility near Gibbons Creek Reservoir. SpaceX and its partner in the project, Tesla will initially invest $55 billion, which could rise to $119 billion when fully developed. Elon Musk is the billionaire who runs both companies. Three commissioners voted in favor of the three proposals: one that detailed SpaceX’s obligations regarding?infrastructure and job creation, another for a reinvestment area that would make SpaceX eligible for incentives and a third that would reduce SpaceX’s property tax burden. Tax abatement could temporarily lower SpaceX's taxes and attract investment, but critics claim this supposed economic tool can shift the tax burden to residents and existing businesses. Grimes County commissioner David Tullos - the sole dissenter - questioned SpaceX lawyer Bucky Brannen on the size of proposed reinvestment zones and SpaceX's plans regarding portions of land within them. Brannen stated that the final footprint for the project has not been determined yet and sought to assure residents that "nobody is going to have to sell their home." John Federspiel, the senior director of Starlink Product Engineering, SpaceX, stated at the hearing that "We acknowledge that large projects raise legitimate questions about environmental and infrastructure stewardship." Our company is committed proactively to addressing these concerns and taking them care of responsibly. Tullos, a dissenting member of the commission, stated before the vote that he had a "real problem" with the fact that we were going to give them a tax abatement of 100%. He said that an economic agreement would provide the county with a payment of $20 million per year in lieu of tax, also known as a "pilot." Residents voice strong opposition While the majority of the speakers were against the project, there was a small group who supported it, arguing that the project would create jobs and bring investment to an area they called economically disadvantaged while also helping the United States compete in the advanced technology market with China. Residents urged the commissioners to postpone the vote because they felt that the scope and impact of the project was not adequately explained. Shirley Hesse lives close to the proposed site and fears that the development will strain the local water and electricity resources. She said that developers "use utilities but don't pay, and taxpayers are left to foot the bill." Kerry Bost, a resident of Iola in Texas, said that the people were being asked to vote on something they didn't understand. Bost expressed concern about the impact of light pollution, among other things. Residents questioned the local officials' decision to consider tax incentives for an IPO that was expected to raise $75 Billion. Sadie May, a resident, said that she was against tax breaks for Musk, the richest man in the world. You cannot convince me Elon requires Grimes County's assistance for this project. You've offered the richest man in the world a Black Friday bargain on our resources and way of living.
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TransAlta buys Blackstone-backed Colorado gas fired plants for $1 billion
TransAlta Corp, a Canadian power producer, announced on Wednesday that it would 'acquire' two natural gas-fired peaks near Denver, Colorado, from Blackstone, for a price of $1 billion. This will strengthen its position in the Western U.S. energy market. As the power industry prepares to meet a rapidly growing electricity demand, driven in part by data centers that are power hungry, they have added flexible gas-fired capacities. The assets Mountain Peak Power and Canyon Peak Power have a combined 318 megawatts of capacity. They are contracted to long-term customers with high credit ratings for over?25years. The deal involves taking on $750 million of project-level debt, and raising $250 million through an equity sale. The facilities should generate approximately $80 million of core adjusted profit annually and about $33 million of free cash flow. Performance incentives will also add to the upside. Joel Hunter, CEO of the company, said that these assets would generate long-term cash flows which could be redeployed into other growth opportunities such as Centralia or Alberta data centres. TransAlta stated that the deal would immediately increase 'free cash flow per shares in the low to mid single digits. The transaction will close in the early fourth quarter of 2026. This is subject to the completion of the Canyon Peak facility which is scheduled to start operations in the third. (Reporting and editing by Arun K. Koyyur in Bengaluru)
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World shares drop, oil jumps as Middle East unrest deepens
On Wednesday, oil prices rose and global stocks declined as expectations of a quick end to the?Iran war faded. Wall Street's main three?indices? pulled back from recent records, with technology and financial shares dragging them down, while energy stocks tracked the rise of crude. The Dow Jones Industrial Average dropped 1.21%. The S&P 500 fell 0.74%. And the Nasdaq Composite lost 0.89%. The pan-European STOXX 600 Index fell by 0.66%. MSCI's global stock index fell by 0.65%. The tensions in the Middle East grew after Iranian attacks damaged Kuwait's airport and injured? dozens of people. Meanwhile, U.S. forces attacked targets near the Strait of Hormuz. Diplomatic efforts to stop the conflict made little progress. Wasif 'Latif, Chief Investment Officer at Sarmaya Partners, said: "The broad market and the technology sector have led the strong rally over the past few sessions. Today, we are taking a break." The headlines coming out of Middle East are the Iran War continuing to escalate and de-escalate. This is?the cause of the market's selloff today". Brent crude settled up 1.89% to $97.81, bringing oil prices close to $100 per barrel. AI HALO The?equity market continued to be supported by investor?enthusiasm for AI. In Asia, Japan and Taiwan stock indexes reached record highs. Marvell Technology shares rose by 3.73% on Wednesday, continuing gains made from Tuesday's record high after Nvidia CEO Jensen Huang dubbed the chipmaker as the next trillion dollar company. SpaceX, whose focus is on AI, will raise $75 billion through a massive initial public offering. This information comes from a source who has been familiar with the situation. Latif continued, "Our view remains that this strong run up in semiconductors and?data-center 'demand is a great way to pull forward future demand and consumption. This helps the economy." YEN INTERVENTION WORRIES The currency markets were nervous after the dollar reached the 160-yen mark, which is a level that usually heightens fears of possible intervention by Japanese authorities. The Japanese yen fell 0.11% to 160.05 per dollar. The Finance Minister warned about the fall of the yen on Wednesday. The euro is down 0.27% to $1.160. The dollar index (which tracks the currency against its peers) rose by 0.23% to reach 99.52. The markets had anticipated rate cuts prior to the Iran 'war, but now have priced in U.S. rates increases this year. A rate hike next week in Europe is already priced-in after the data showed that inflation increased last month. The traders see a roughly 75% chance that Japan will hike rates in June. U.S. Treasury 10-year yields increased 3.4 basis points, to 4.489%. U.S. private payrolls grew more than expected in may, according to data. On Friday, the official numbers for employment will be released in their entirety. Spot gold dropped 0.99% to $4440.06 per ounce.
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Israeli strikes kill 3 people in Gaza as truce talks stagnate
Health officials reported that Israeli strikes in Gaza killed three Palestinians on Wednesday. Hamas, the militant Palestinian group, said stopping'such a?attacks is crucial for further talks to safeguard a U.S. mediated ceasefire. According to medical personnel, a Palestinian was killed by an airstrike in the Mughraqa region of the central Gaza Strip. Israeli forces said they had killed a suspicious person near troops operating in an Israeli controlled area. Two brothers were killed in a separate Israeli airstrike -- Saqer Khalil and Moamen Khalil Ab?Karim - in the courtyard a nearby refugee camp in Maghazi, according to medics. Israel's military didn't immediately comment on the incident. The ceasefire brokered and signed by U.S. president Donald Trump failed to stop Israeli attacks in Gaza. Israel now controls over half of the enclave after the conflict which began in October 2023 with Hamas attacks against southern Israel. The indirect talks about the implementation of the second phase of the agreement, which includes disarmament by the group and the withdrawal of Israeli troops, have reached a deadlock. HAMAS MUST DISARM :?NETANYAHU In an interview on CNBC, Benjamin Netanyahu said that the Hamas group should disarm, and that the Board of Peace, led by the United States, would take action on this. "Hamas must disarm." "That's the plan of President Trump," he said. We'll need to talk about how to get them to comply. We make sure that they do not have weapons smuggled into the country to arm themselves. This is number one. And number two, they are not able launch missiles against us," Netanyahu said. According to sources close to the talks, further negotiations were expected in Egypt this week. However, Hamas denied sending delegates to Cairo. Hamas officials told reporters on Wednesday that the group has been in contact with mediators every day and stressed the need to stop Israeli attacks in Gaza. The official stated that "Israel has rejected ending its attack; it continues restricting?aids and goods into Gaza, and expanding its occupation in blatant violation of the ceasefire agreement." Israel claims that its strikes aim to thwart imminent attacks. Israel says that it also allows goods and aid to enter Gaza. Gaza health officials, who do not differentiate between combatants or civilians, have reported that 930 Palestinians were?killed by Israeli strikes since the truce started. Israel's military confirmed that four Israeli soldiers were killed by militants in the same time period.
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Staff message shows that Commerzbank has been in touch with the German regulator regarding UniCredit's stake building,
According to an internal memo seen on Wednesday, Commerzbank is in touch with German regulator?BaFin regarding recent disclosures made by Italy's UniCredit concerning the acceptance of its tender offer to the German lender. The message sent to employees on Tuesday stated that UniCredit’s communication was?misleading. It claimed that it was not "economically reasonable" for investors who had offered a cumulative stake?7.58% as reported by UniCredit. This is because the Italian bank’s offer price falls below?the current market price. UniCredit responded by saying it would not comment "on insinuations lacking a factual base", adding that the facts regarding its Commerzbank Holdings were what it had reported. This development highlights the escalating tensions that have developed between UniCredit and Commerzbank as UniCredit seeks to take over a company, which Commerzbank called hostile. Commerzbank stated in a staff message that a large portion of the shares UniCredit has reported as being tendered could come from market players who are also counterparties with the Italian Bank for derivatives. The message read: "We are monitoring and analysing this process closely, and we're also in touch with BaFin about this matter." A spokesperson from Commerzbank confirmed that the message was correct. Last month, the?year-long battle to?control Commerzbank came to a crucial juncture after UniCredit made a bid which was then formally rejected by Germany’s second largest bank. UniCredit announced on Tuesday that it had achieved its goal with the bid. The aim was not to take control of 'Commerzbank, but to raise 'UniCredit’s direct stake from 27% to 30%. UniCredit can buy more Commerzbank stock on the market in the coming year once it has reached the mandatory threshold.
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Automakers ask EPA to act quickly on rewriting vehicle pollution regulations, and back a two-year delay
Major automakers have backed the U.S. Environmental Protection Agency's proposal to delay enforcement for two years of a regulation that requires significant reductions in air pollution by?vehicles. However, they want the agency to act quickly to rewrite the rules. At a public hearing, the Alliance for Automotive Innovation (a trade group that represents General Motors Toyota Motor, Volkswagen Ford Stellantis and Hyundai) said the delay was necessary and demanded "a reasonable and workable way forward" as well as for the agency "to establish realistic and durable long term standards." Environmental groups have criticized this delay saying that it would lead to an increase of preventable illnesses and premature deaths. Last month, the EPA estimated that 'delaying Joe Biden’s anti-pollution regulation would save automakers $1.7billion. The proposal would delay the compliance deadlines for medium- and light-duty vehicles. It cited the decline in U.S. electric vehicle sales, which made it 'unattainable' for manufacturers to meet the more stringent emission rules. The automaker group stated that the decline in EVs sales has "already stranded a billions?of dollar in investments." Biden's EPA published a final rule in April 2024 requiring significant cuts to so-called criterion pollutants emitted by passenger and commercial vehicles for the model years 2027-2032. Rishab Jagetia, a fellow at the Environmental Defense Fund, said that a delay of two years will cause billions in health damages. This includes more serious lung and heart diseases as well as premature deaths. He said that vehicle standards "save lives". The Biden regulations require a 50% cut through 2032 in the six criteria pollutants (ozone, particulate, carbon monoxide and nitrogen dioxide), and a 58% reduction for medium-duty vehicle. EPA estimates that by 2024 the reduction of pollutants which contribute to the formation smog and soot will result in an annualized benefit of $13 billion. The 'Trump Administration has taken several steps to rollback vehicle regulations. In February, the EPA finalized the repeal of its "endangerment findings" for vehicles. This was a 2009 determination by the EPA that greenhouse gas emissions were a threat to human?health. It gave it the authority to regulate vehicle emissions. The?Transportation Department? proposed in December to reduce fuel economy standards from model years 2022-2031. This would require 34.5 miles per gallons on average by 2031.
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Scientists discover new species of grasshopper, dragonfly and fluorescent spider
A conservation group reported that wildlife experts discovered eight new species of dragonfly in Angola, along with three unknown grasshoppers, and 60 vibrant-colored butterflies and moths. The Wilderness Project visited four major African rivers that feed off the water flowing through the plateau: the Congo River, Okavango River, Zambezi river, and Cuanza. The new species include an armoured predatory cricket, a copper caterpillar species and its adult butterfly that was previously unknown, as well as a crowned spider fluoresces when exposed to ultraviolet light. Experts have also discovered a 'new blood orange-hued ladybird orb web spider that mimics ladybirds to signal to predators with a bright color - usually a darker shade of red - indicating it is too bitter?or toxic. Rob Taylor, expedition leader, said: "The armoured insects are cool...very fierce-looking." As a defensive mechanism, they are able to squirt liquid onto anyone who is trying to attack. Scientists around the globe are trying to record as many species as possible in order to cope with an ecological crisis which has threatened a million animal and plant species. Scientists estimate that there are 8,7 million species in the world. However, only 1.5 million have been identified by science. More than 800 species of animals have gone extinct in the last 1500 years due to?human activity. Taylor stated that wildlife on the Lisima Plateau is threatened by "tree felling,?deforestation, and...the artisanal diamond mining industry." He also said that slash-and burn agriculture, which destroys natural forests in order to plant, washes away nutrients, threatens the animals.
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Three people are killed in Gaza by Israeli strikes, say medics
Israeli strikes in Gaza killed three Palestinians on Wednesday, according to health officials. The militant Palestinian group Hamas also said that an end to these attacks is crucial for further talks?on safeguarding the U.S.-brokered truce. Medical personnel?said that one Palestinian had been?killed? in an airstrike near Mughraqa, a central Gaza Strip area. Israeli forces said they had killed a suspicious person who was acting near forces in a controlled area. Two brothers were killed in a separate Israeli airstrike in a courtyard of a home in Maghazi Refugee Camp, said medics. Israel's military has not commented on the incident immediately. The ceasefire was brokered by the U.S. The ceasefire brokered by the U.S. The indirect talks to implement the second phase of this deal, including the disarmament of the group and the withdrawal of Israeli troops, have reached a deadlock. Sources familiar with the negotiations said that further talks were expected in Egypt this week, but Hamas denies sending delegates. On Wednesday, a Hamas official said that the group is in constant contact with mediators. He also stressed the importance of ending Israeli attacks on Gaza. The official stated that Israel has refused to end its attacks, continues to restrict aid and goods entering Gaza, and expands its occupation in violation of the ceasefire agreement. Israel claims its strikes aim to?thwart imminent attacks. Israel also claims that it allows goods and aid to enter Gaza. Gaza health officials, who do not differentiate between combatants or civilians, have reported that 930 "Palestinians" have died in Israeli strikes since the truce started. Israel's military confirmed that four Israeli soldiers were killed by militants in the same time period.
Steel body: US tariff doubled to doubling US tariffs reduced EU steel exports 34%
Steel industry association 'Eurofer' said that EU steel exports have dropped by 34% to the U.S. since Washington raised tariffs from 25% to 50%. Higher duties on derivatives such as motorbikes and washing machines also hit European demand.
Steel exports into the U.S. have fallen to 1,94 million metric tonnes in the last three quarters, since the Trump Administration doubled import tariffs for steel and aluminum from 25% to 50% a year earlier.
Eurofer reported that in 2025 European Union producers will export 3.4 million tons of products to the United States, up from 4.1 million in 2024 and 4.7 millions in 2017.
Eurofer stressed that it was vital?that the EU and U.S. fully implement their July trade agreement. The agreement was reached?at Donald Trump's Turnberry Golf Course in Scotland. It stipulates that the EU should remove its duties from most U.S. imports in exchange for a 15% U.S. tax on EU exports.
The two sides also agreed to discuss the possibility of tariff-free steel and aluminum quotas, and how they can work together to reduce global overcapacity.
Axel Eggert said, "the U.S. must fulfill its commitment to work together with the EU in order to find a resolution." The U.S. tariffs imposed on 'derivatives', whose metal content was initially subject to a 50 percent tariff, have also been a problem for EU producers. Trump expanded the product range a month following?the Turnberry agreement.
Trump's administration has since reduced a number of tariff rates. A proclamation issued on Monday reduced the rate for some products from 25% to 15%. For?fridges?, lawnmowers?, or rail parts?, the rate remains at 25%.
If this figure does not drop to 15% by year's end, the EU may suspend certain concessions. (Reporting and editing by Alexander Smith; Philip Blenkinsop)
(source: Reuters)