Latest News
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Draft shows EU will reduce sustainability rules for businesses
A draft document obtained by revealed that the European Commission intends to reduce the number of businesses subject to EU sustainability reporting obligations as part of its efforts to reduce red tape. Brussels will publish next week a "omnibus proposal" to simplify green regulations for businesses. The aim is to make local industries competitive and to respond to U.S. president Donald Trump's pledge to abolish regulations. Spain and Germany, among others, have called for the European Union to weaken the rules on green reporting. The Commission's partial draft proposals for the future, seen on Saturday by the media, revealed that it is planning to make changes to the EU Corporate Sustainability Reporting Directive, which requires companies disclose information about their social and environmental sustainability. According to the proposed rules, which may still be changed before publication, only those companies with over 1,000 employees and net revenues exceeding 450 millions euros ($471million) will be required to comply. The rules currently apply to companies with over 250 employees and 40 million euros in turnover. According to the draft, the EU will also abandon its plans to adopt industry-specific reporting standards before next June. The document also detailed the plans to delay EU's Due Diligence Law - CSDDD, which aims at ensuring companies find and fix environmental and human rights issues in their supply chain by imposing due-diligence requirements on large companies. The draft proposal would only require companies to conduct in-depth evaluations of their direct business partners and subsidiaries and leave out all other subcontractors or suppliers in their supply chain.
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Berkshire increases investments in Japanese trading companies
Warren Buffett announced on Saturday that Berkshire Hathaway, the conglomerate he founded, will likely increase Berkshire's ownership of five Japanese trading companies it owns. In his annual Berkshire shareholder letter, the billionaire investor stated that Itochu Marubeni Mitsubishi Mitsui Sumitomo and Mitsui agreed to "moderately loosen" limits on Berkshire's equity stakes. Berkshire’s investment in these companies will total $23.5 billion by the year 2024. Buffett wrote that Berkshire's holdings in all five companies will increase over time. Buffett, who is 94 years old, said that he and Berkshire Vice-Chairman Greg Abel, the Berkshire CEO he has designated as his successor, invest for a "very long-term." Buffett wrote: "I expect Greg and his successors to hold this Japanese position for decades, and Berkshire will work with the five companies in other productive ways." Japanese trading houses, also known as "sogo-shosha," trade in many different materials, food and products. They often act as intermediaries and provide logistical assistance. The real economy is also heavily involved, including commodities, shipping and the steel industry. Berkshire started investing in trading houses in 2019 due to their financial strength compared with their low stock price, and revealed their 5% ownership stakes at Buffett's 90th Birthday in August 2020. Buffett avoids businesses that he doesn't understand. In 2023, Buffett told Nikkei that trading houses were "really similar" to Berkshire, the Omaha-based conglomerate which he led since 1965. Buffett stated in his shareholder letter that Berkshire has spent $13.8 billion in its current holdings, and it expects to receive $812 million in dividend income by 2025. "This was a great investment, when others might have seen them as value traps," Cathy Seifert said. CFRA Research analyst Cathy Seifert rates Berkshire a 'hold. She said Buffett’s comments showed Berkshire had a positive relationship with trading houses. Berkshire also issued fixed rate, yen denominated bonds. Buffett, however, said that the company seeks to be "currency-neutral" and does not have a view on currency changes in the future. The conglomerate reported on Saturday that it will have $1.15 billion in foreign currency gains, after taxes, by 2024. (Reporting and writing by Jonathan Stempel in New York, Carolina Mandl in New York, editing by Rod Nickel).
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Warren Buffett warns Washington after Berkshire announces record profits and cash
Berkshire Hathaway reported record profits on Saturday, even as it increased its cash stake from $334.2 billion to $334.2 trillion. Warren Buffett warned Washington in his annual shareholder letter that they should spend their money "wisely," and to take care of people who "get the short straws in life." In the letter, Buffett, who is 94 years old and arguably the most famous investor in the world, acknowledged his age, telling shareholders that he uses a cane now and will spend less of his time answering their questions at Berkshire’s annual meeting, which takes place in May. Abel's ability to manage capital has been "vividly demonstrated" by the 62-year old Abel. Berkshire reported its annual report along with Buffett's note, which showed a record operating profit of $47.44 Billion, up 27%. Berkshire Hathaway's net income was $89 billion. This includes gains from Berkshire shares such as Apple, American Express and American Express. Apple included. Berkshire’s cash stake was a reflection of high business valuations, and nine consecutive quarters in which the company sold more shares than it purchased. Buffett wrote: "Often nothing seems compelling, but very rarely do we find ourselves in the midst of opportunities." AMERICAN MIRACLE Buffett is celebrating his 60th year at Berkshire. He transformed the company from a failing fabric company to a conglomerate of dozens of companies in industries such as insurance, railroads, energy, retail, and industrial. Buffett added that Berkshire was "not done" and will continue to favor owning stocks, especially U.S. ones, over cash. He sent a warning message to Washington and lamented that capitalism has "faults and abuses, which are in some respects worse than ever," and "scoundrels" and "promoters" have been at it full force. He urged legislators to preserve the stability of the U.S. Dollar, saying that "paper money could see its value disappear if fiscal foolishness prevails" and that in the United States' history the country has "come very close to the edge." Buffett said that the long-term success and growth of Berkshire, as well as the American economy (which he called "the American miracle") depended upon the ability of people to participate. He said Uncle Sam could encourage or discourage that. Buffett, in a letter to the government, wrote: "Take care for the many, who without their fault, are the ones that get the short straws of life." "They deserve more. Never forget that you are needed to maintain a stable exchange rate, and this requires both your wisdom and vigilance. Cathy Seifert is an analyst with CFRA Research, who rates Berkshire as "hold." She said: "His way of addressing politics and the impact of the macroeconomic climate was to talk about America's business being messy." He's warning Washington, "Be careful where you step." Fewer buying opportunities Buffett stated that Berkshire had not purchased an entire company in 2016. However, he said the company is likely to increase their combined $23.5 billion investments into five Japanese trading companies: Itochu Marubeni Mitsubishi Mitsui Sumitomo. Other stocks are more expensive, however. The Standard & Poor’s 500 hit a new record on Wednesday while the Nasdaq is only 3% off its peak of December 16. Berkshire shares are also too small to dominate the indexes like they used to do decades ago. In the past year, the company's share price rose 15% while the S&P 500 grew 18%. Data show that over the past decade, Berkshire stock has increased 225%. The index, however, rose 241%, including dividends, and 185% without dividends. Bill Smead of Smead Capital Management, Phoenix's chief investment office said: "They will be able to buy a lot but Berkshire won't ever be that large compounder with double-digits." "Berkshire is a great way to own major companies and avoid trouble. Buffett, Abel, and Berkshire Vice-Chairman Ajit Jain will spend less of their time on stage at the annual meeting. Buffett told Fortune magazine in the last month he still had fun and was able to do some things fairly well while other activities were "eliminated" or "greatly minimized". The traditional film created by Buffett’s daughter Susie will not be shown at the meeting. Buffett, when asked about his age, said that he speaks regularly with his 91 year-old sister Bertie on Sundays, using a traditional phone. He said, "We discuss the relative merits and joys of canes as well as other exciting topics such the joys that come with old age." In my case, its utility is to prevent me from falling on my face.
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The oil ministry has announced that the northeast of Syria will begin supplying oil directly to Damascus.
Ahmed Suleiman, spokesman for the Syrian oil ministry, said on Saturday that Kurdish-led officials in northeast Syria are now supplying oil to Damascus from the local fields they control. This was the first time that the oil rich northeast of Syria was acknowledged as a source of oil for the islamist-run government, which was installed in December after the former president Bashar al Assad was overthrown by rebels. Suleiman claimed that the oil came from Hasakeh, Deir el-Zor provinces and the deliveries were made based on a revised version of a prior agreement between the Assad Government and Kurdish Authorities. He claimed that the new Syrian leaders had changed the articles of the deal which "served people connected to the Assad regime's interests". Sources from the semi-autonomous administration in northeast Syria said that the deal involved the shipment of 5,000 barrels a daily of crude oil from the Rmeilan Field in Hasakeh, and other fields in the Deir el-Zor Province to a refinery located in Homs. In 2010, Syria exported 380,000 barrels per day of oil (bpd), a year prior to the protests against Assad’s rule that spiraled into a 14-year conflict that destroyed the country’s infrastructure and economy, including its oil. The oilfields have changed hands several times. The Kurdish-led Syrian Democratic Forces eventually captured the northeastern fields. However, U.S. sanctions and European sanctions made legitimate imports and exports difficult. In January, the United States granted a six-month exemption from sanctions to allow certain energy transactions. The European Union will soon suspend sanctions related to transport, energy and reconstruction. Several trade sources said that Syria wants to import oil through local intermediaries in the meantime, after its first post Assad import tenders attracted little interest due to sanctions and financial risk. Internal oil trade also plays a major role in the talks between the Northeast region and the new Damascus authorities, who want to centralise control over all of Syria. According to sources, the SDF will likely have to give up control of oil revenue as part of any settlement. Mazloum Abdi, the SDF commander, said that he was willing to give up control of oil revenues to the new government if the money was shared fairly among all provinces. Reporting by Maya Gebeily from Beirut, and Timour Azhari from Damascus. Editing by Bernadette and Emelia Sithole Matarise and Kirsten Donovan.
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Iraq's Oil Ministry says that procedures for oil exports via Turkish pipeline are complete
In a statement issued on Saturday, the Iraqi oil ministry stated that all procedures were completed for the resumed exports via the Iraq-Turkey pipe. Iraq's Oil Minister said Monday that oil exports will resume from the semi-autonomous Kurdistan Region next week. This resolves a dispute of nearly two years that has disrupted oil flows, as relations between Baghdad Erbil have improved. Sources have confirmed that the Trump administration has put pressure on Iraqi officials to allow Kurdish exports of oil to resume or else face sanctions along with Iran. Later, an Iraqi official denied the pressure and threat of sanctions. Following the statements made by the oil minister earlier in the week, the federal government of Iraq (FGI) and the Kurdistan Regional Government(KRG) held technical discussions to work out the details needed for the resumed exports. This included a payment system that was acceptable to the oil companies. The Iraqi Oil Minister's announcement follows the Iraqi Parliament's approval of a budget amendment on February 2, which set a rate for oil transportation and production costs to be $16 per barrel in Kurdistan. The KRG is also required to transfer its oil production to the State Oil Marketing Organization, which is run by the government. In a statement issued on Saturday, the oil ministry asked that KRG begin delivering crude oil to SOMO to allow exports to resume. (Reporting and writing by Ahmed Rasheed, Ahmed Tolba, and Maha El Dahan. Editing by Sharon Singleton.)
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France’s EDF Reports $944M Impairment on US Offshore Wind Project
State-owned French power giant EDF is taking a 900 million euro ($944.4 million) impairment charge on the Atlantic Shores offshore wind farm project in the United States after partner Shell pulled out of the joint venture."We have every intention of pursuing the interests of the (joint venture) company to the end, but in order to reflect the new American political landscape ..., the board of directors has decided at this stage to depreciate the developments that we have carried out offshore at Atlantic Shore," EDF CEO Luc Remont told reporters.($1 = 0.9530 euros)(Reuters - Reporting by Forrest Crellin, Editing by David Goodman)
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Cuba opens the first of 92 new solar parks to combat energy crisis
Cuban President Miguel Diaz-Canel opened the first of 92 Solar Parks on Friday, as part of an initiative backed by China to reduce the number of blackouts that can last for hours in the Caribbean Island nation. The park in Havana is one of 55 that are expected to be online by this year. It will generate 1,200 megawatts. Last year, the outdated power grid of this Communist-run nation collapsed multiple times. A severe fuel shortage made it impossible for smaller clusters to operate diesel-powered generators which typically backup the system. Blackouts that lasted for years have weakened the economy, and prompted scattered protests by residents who are tired of the multi-faceted crisis which includes a scarcity of basic goods such as food and medicine. The government is heavily promoting the parks as a partial answer to people's problems, which they blame primarily on U.S. sanction. Diaz-Canel tweeted on Friday that "the recovery of the grid is a top priority, and this is its safest route." Cuba's maximum demand is around 3,500MW. However, it fails to meet 1,500MW of this, leading to power outages. Cuba and China agreed to boost solar energy in Cuba's grid in April, but neither government provided details on the financing. Hua Xin attended the Havana solar park's inauguration. Foreign journalists were not allowed to attend the event. Presently, less than 5% (or a little more) of Cuba's energy is derived from alternative sources. Cuba's 2030 goal is 24%. Marc Frank (reporting; Paul Simao, editing)
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Baker Hughes reports that the US oil and gas rig counts have reached their highest level since June.
Baker Hughes, a leading energy services company, said that the U.S. added oil and gas rigs this week for a fourth consecutive week to reach their highest level since last June. The number of oil and gas drilling rigs, a good indicator of future production, increased by four in the week ending February 21. Baker Hughes reported that despite this week's increase in rigs, the total count is still 34 or 5% lower than this time last year. Baker Hughes reported that oil rigs increased by seven this week to 488, the highest level since September. Gas rigs dropped by two to 99. Oil and gas rig counts are expected to decline by 5% and 20% respectively in 2024, as the lower U.S. gas and oil prices in recent years have prompted energy companies to concentrate more on increasing shareholder returns and paying off debt than raising production. Although analysts predicted that U.S. crude spot prices would remain the same in 2025, U.S. Energy Information Administration projected crude production would increase from a record 13,2 million barrels per daily (bpd), in 2024, to around 13.6 millions bpd, in 2025. The EIA predicted a 73% rise in the price of spot gas Prices in 2025 will prompt producers to increase drilling activity in this year. A 14% drop in price in 2024 forced several energy firms in the industry to reduce output for the very first time since 2020, when the COVID-19 epidemic reduced demand for fuel. The EIA predicted that gas production would increase to 104.6 billion cubic feet per day in 2025. This is up from 103.1 bcfd and a record-breaking 103.6 bcfd. (Reporting and Editing by Marguerita Choy)
EU considers tighter steel import curbs over Trump's new tariffs
The European Commission is examining whether it should tighten the current system of quotas for steel imports in order to protect EU producers against new tariffs that U.S. president Donald Trump intends to impose to steel and aluminum imported into the United States on March 12.
Since 2018, the European Union has implemented safeguards, in the form of quotas for tariff-free steel per quarter and by country. The European Union has safeguards, in the form of tariff-free quotas per quarter and country for various categories of steel dating from 2018.
Trump said that the new 25% tariffs on steel and aluminum will be applied to all countries. He also cancelled exemptions and duty free quotas. The previous aluminium tariff from 2018 was only 10%.
Leopoldo Rubinacci (Deputy Director-General for Trade at the European Commission) told an audience at the European Parliament, that the EU executive has started a review on the safeguard measures, and plans to finish it by March's end.
"One question we have...is that since the scope of measures on steel and duties on aluminum are increased, whether there is a necessity to have a brand new safeguard or consider other ways of protecting the markets," he said.
The European Commission also stated that it would look at extending safeguards or developing an alternative mechanism beyond mid-2026.
According to World Trade Organization regulations, safeguards are only valid for eight years. This means they will expire during Trump's second presidential term, which is mid-2026.
In 2018, the European Commission concluded that Trump's steel-and-aluminium tariffs were "a disguised safeguard", which meant that the United States had to compensate its trading partner.
Rubinacci stated that "by and large, I believe that the legal analyses that were made at that time still stand."
In 2018, the EU responded by imposing counter-tariffs against U.S. motorcycles and bourbon exports. The countermeasures will be suspended until March 31.
(source: Reuters)