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Sources say that EU countries are considering changing their 2025 gas storage goals.
EU diplomats said that if the changes to the future EU gas storage goals are approved by European Union member countries quickly enough, they could also ease this year's storage requirements. The EU is negotiating changes in the future obligations of filling gas storage for 2026-2027. This includes swapping out their current binding goal to fill storage by 90% on November 1, for a target to reach that same level at any time between October 1-December 1. The EU diplomats stated that these changes may also be applicable to the November 1st target for this year, if rules are finalised before then and published. Gas storage regulations were introduced in the EU in 2022, after Russia cut deliveries due to its invasion of Ukraine. This was done to provide a buffer for winter fuels. Poland, which currently holds the rotating EU presidency and is responsible for negotiations between its member states, published a document on Wednesday that confirmed planned changes to gas storage regulations would be effective the day following their publication in the EU official journal of law. The EU hopes to reach a consensus on rules and regulations next week. After that, they will negotiate the final law in conjunction with the European parliament. One EU diplomat said that it could take several months for the rules to be agreed upon and published as EU law. This would likely mean they would only affect the November filling goal, but not the other goals the countries have in the months prior. EU has also set gas storage targets for the months of February, May and July. In future years, these targets would be voluntary according to the countries' proposal. Negotiations are still ongoing and the impact of the 2025 target, as well as other changes that countries may propose to future targets, could change. The European Commission originally wanted to extend for two years the current system of binding goals that must be achieved by certain dates. This idea was met with resistance by governments such as Germany, France and The Netherlands. The countries want to loosen the rules due to concerns that the targets will inflate the gas prices because they indicate to the market European buyers need to buy large quantities of fuel within a fixed time frame, giving them an opportunity to manipulate the prices. In the latest document, it was revealed that member states could deviate up to five percentage points from their obligation to fill storage with gas by 90% in the event of "unfavourable market conditions". (Reporting and editing by Nia William in Brussels, Kate Abnett)
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US to develop AI on Energy Department Lands
On Thursday, the administration of Donald Trump announced that it had identified 16 sites in the United States Energy Department where data centers and energy plants could be built to support artificial intelligence. Why it's important The rapid growth of AI has led to the first surge in U.S. electricity demand in 20 years, sending Big Tech companies and utility companies scrambling for new data centers and energy plants. DOE stated that the potential sites were positioned to allow rapid construction of data centers, with in-place infrastructure and the ability for fast-tracking permits for new energy production such as nuclear reactors. The Nuclear Regulatory Commission (an independent body that regulates nuclear power) has not yet made it clear how the process of accelerating nuclear power would work. KEY QUOTE The Secretary of Energy Chris Wright said, "The race to dominate AI is the next Manhattan Project, and we can win with President Trump and the innovation from our National Labs." He was referring to a secret U.S. program to create the first nuclear weapon in World War Two. BACKGROUND Energy Department is a top land manager in the United States. The Energy Department did not respond immediately to a query about the locations of 16 sites. Under former president Joe Biden, the DOE claimed that it had identified five sites in Washington, Nevada, South Carolina and other states, which could host clean energy projects, including solar, nuclear and wind power. The DOE had to clean up the land after it was contaminated with nuclear weapons development and other Cold War work. WHAT'S NEXT? DOE encourages private-public partnerships, seeking input from energy developers, data center developers and the general public. It wants to start operations of AI infrastructure by the end of 2027. (Reporting and editing by Elaine Hardcastle; Timothy Gardner)
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US Judge rules that several companies are liable for tainted infant food.
A U.S. Judge said that several companies, including Walmart, Beech-Nut, and Gerber, must face a national lawsuit alleging that toxic heavy metals were contaminated in their baby food and caused brain and neurodevelopmental damages to the children who ate them. In a ruling on Wednesday, U.S. district judge Jacqueline Scott Corley stated that parents could try to prove defective manufacturing, negligence, and failure to warn their children about over 600 baby food products, caused them to suffer from autism spectrum disorder, and attention deficit hyperactivity disorders. Parents claimed that some defendants did not adhere to their internal limits on how much mercury, arsenic and cadmium in baby food is safe. Others never addressed the matter. Corley stated that this could make it plausible for parents to claim some baby food is unsafe if safety standards are not met. Judge Corley, based in San Francisco, said that parents did not have to prove toxicity at a certain threshold. Gerber, owned by Switzerland's Hero Group and Beech-Nut, is owned Nestle. Walmart sells its baby food under the name of its own brand. The case also includes Earth's Best Organics by Hain Celestial, Danone's Happy Baby & Happy Tot, Sun-Maid Growers of California's Plum Organics, and Neptune Wellness Solutions' Sprout Organic. On Thursday, lawyers for the defendant companies didn't immediately respond to comments. Companies have stated that their baby food products are safe. The companies also claimed that heavy metals occur naturally in the environment and that parents "cannot just allege that detectable amounts of heavy metals makes baby food defective." R. Brent Wisner is an attorney for the plaintiffs. He expressed his satisfaction with the ruling. Wisner wrote in an email that "selling baby food with arsenic and lead is simply not okay." With the court's decision, Wisner was one step closer to holding companies accountable for decades of misfeasance. Parents filed a lawsuit after a report in 2021 by a U.S. House of Representatives Subcommittee for Economic and Consumer Policy said that "dangerous levels" of heavy metals could cause neurological injury. Corley dismissed Campbell's as a defendant, since it sold Plum Organics in 2021 to Sun-Maid. Amazon.com, Whole Foods and Danone Baby Food have all been sued by the federal government for their sale. The case is In Re: Baby Food Products Liability Litigation. U.S. District Court Northern District of California No. 24-md-03101. Bill Berkrot, Bill Stempel and Jonathan Stempel (New York) are responsible for the editing.
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Canada announces limited countermeasures against US and calls Trump's move a tragedy
Mark Carney, the Canadian Prime Minister, announced on Thursday a limited number of countermeasures against U.S. Tariffs while calling President Donald Trump’s protectionist measures a tragedy for international trade. Carney stated that the Canadian government would copy the U.S. strategy by imposing 25% tariffs on all vehicles imported into Canada from the United States which are not in compliance with the U.S. Mexico-Canada trade agreement. Carney said at a press event that the new tariffs will not affect auto parts or vehicle content coming from Mexico. The American administration must change its course, given the potential damage that could be done to the American people. Carney warned that he did not want to "give false hope" and said it would take time for the United States' approach to change. Carney stated that Canada would maintain its tariffs announced previously. Trump's new duties sent shockwaves throughout the markets on Thursday. The 10% tariff on all U.S. imported goods, coupled with higher duties for some countries, caused investors to abandon risky assets, as they feared Trump would disrupt global trade. "The 80 years when the United States assumed the role of global economic leader, when they forged alliances founded on mutual trust and respect, and promoted the free and open trade of goods and service, are over. Carney called it a "tragic event". (Reporting and editing by Will Dunham; David Ljunggren)
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The US offers billions in Congo mineral investment after tariffs
During a Thursday visit, the senior adviser to President Donald Trump for Africa revealed that the United States was in talks with Congo to invest billions in the mineral-rich country. The United States also wants to end a conflict in eastern Congo. The Democratic Republic of Congo has huge reserves of cobalt and lithium, as well as uranium, amongst other minerals. It has been battling M23 rebels, backed by Rwanda, who have taken over large areas of its territory in this year. The U.S., which on Wednesday sent shockwaves across the world by announcing a 10% baseline tariff on all imports, said last month that it is open to exploring critical minerals partnerships with Congo after a Congolese senator contacted U.S. officials to pitch a minerals-for-security deal. You have heard of a mineral agreement. After meeting Congo President Felix Tshisekedi, U.S. Senior Advisor Massad Boulos stated that they had reviewed the Congo proposal and "the president and myself have agreed on an appropriate path for its development". On Thursday, the details of any possible deal or Congo's offer were not made public. The minerals of Congo, which are used to make mobile phones and electric vehicles, are currently controlled by China and Chinese mining companies. Boulos said that U.S. firms will be involved. Rest assured that American companies will operate transparently, and stimulate local economies. "These are multi-billion dollar investments," he stated. He said that the U.S. wanted to help bring peace to the east, where M23 has taken over two of eastern Congo's largest cities and thousands have died. He said, "We want to have a lasting peace which affirms the territorial and sovereign integrity of the DRC." "There is no economic prosperity if there is not security."
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PPC Greece to invest $6.4 Billion to create green tech and energy hub
The Public Power Corporation of Greece plans to invest 5,75 billion euros ($6.4billion) in Western Macedonia to create a green technology and energy hub for Greece as well as southeastern Europe. The plan includes the construction of a 300 megawatt, 2.3 billion euro data center at Agios Dimitrios. PPC stated that the facility could potentially be scaled up to 1,0MW depending on the level of demand. The company intends to also invest 1.2 billion Euros in developing solar parks on ex-mining sites in Western Macedonia. These solar parks will provide a combined power of 2,130MW. Additional 940 million Euros will be allocated to energy storage projects with a total of 860 MW. PPC stated that Ptolemaida 5 - a lignite fired power plant - would first transition into a natural gas 350 MW unit open cycle by the end 2027. Once the decision is made to invest in the data center, the turbine could be upgraded to a combined-cycle 500 MW gas turbine. PPC plans to invest through Hellenic Hydrogen in Greece's 1st industrial-scale green hydrogen production unit, in the town Amyntaio. PPC stated that the new projects will create up to 20,000 construction jobs and an additional 2,000 once they are operational.
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Stocks and the US dollar fall as Trump tariffs fuel concerns about economic growth
The S&P 500 index fell more than 4% on Thursday morning in New York, while the U.S. Dollar and oil prices were also down as Donald Trump's U.S. tariffs caused investors to flee for safe havens like bonds and yen. The new 10% baseline tariff on imported products, plus the eye-watering tariffs that Trump imposed on dozens countries he claimed had unfair trade barriers, left traders frightened by their severity. Investors are concerned that a full-blown dispute over trade could lead to a global economic slowdown, and even inflation. The latest round of U.S. tariffs has hit a world economy still recovering from the inflation spike after the pandemic and dealing with geopolitical tensions. The euro rose by more than 2% versus the dollar. The dollar fell 2.51% against the Japanese yen to 145.49. Nigel Green is the CEO of deVere Group, a global financial advisory firm. He said: "This is what you do when you claim to supercharge the economic engine of the world." Nasdaq shares were down by more than 5% on the day, and technology stocks were among the biggest drags. Apple's stock fell by 8.5% due to tariffs on China, where it manufactures most of its products. Amazon.com fell 7.8%, Microsoft was down 2% and Nvidia was down 5.1%. As worries have grown, the losses are a continuation of the trillions that were lost by "Magnificent Seven", tech giants. The Dow Jones Industrial Average dropped 1,489.79, or 3.53 %, to 40735.53, while the S&P 500 fell 228.84, or 4.04 %, to 5,442.13, and the Nasdaq Composite declined 915.44, or 5.20 %, to 16,685.64. The MSCI index of global stocks fell by 23.68 points or 2.83% to 812.43. RECIPROCAL LEVY The 27-country EU block in Europe now faces a reciprocal 20% levy. The pan-European STOXX 600 Index was down by 2.59%. Trump's tariffs were particularly harsh on Asia. China received a reciprocal tariff of 34%, Japan was hit by 24%, South Korea with 25%, and Vietnam with 46%. In response, Vietnamese stocks fell 6.7%. The Nikkei 225 index fell 2.8%. Pham Minh Chinh, Vietnam's Premier Pledged to Maintain the country's target for economic growth of at least 8 percent this year despite the U.S. imposition of its heavy tariffs on Southeast Asia's exports. The rush to buy ultra-safe government securities that guarantee a steady income has pushed down U.S. Treasury rates. The yield of the benchmark 10-year U.S. notes dropped 17.8 basis points, to 4,017% from 4,195% at late Wednesday. The yields on government bonds in the Eurozone fell. Germany's 10-year bond, which is the benchmark for the region, dropped 7.5 basis points to 2.65% after reaching 2.625%. This was its lowest level since March 4. If tariffs cause recessions, the central banks of the world will likely lower interest rates. This is good for bonds. Fitch, a credit rating agency, warned that they could be a game-changer for the U.S. economy and global economies. Deutsche Bank said it was a moment "once in a life time" which could reduce U.S. economic growth by between 1%-1.5% this year. Olu Sonola, Fitch's director of U.S. Economic Research, said that many countries would likely be in a state of recession. If this tariff rate is maintained for a long time, you can forget about most forecasts. Fitch downgraded China’s credit rating shortly after, citing steep U.S. Tariffs as the reason. The oil prices fell by more than 6%. U.S. crude was down 7.07% to $66.64 per barrel while Brent, at $70.06 a barrel, was down 6.55% for the day. Gold reached a record-high above $3,160 per ounce but then lost steam as the Japanese yen rose. Spot gold dropped 1.23%, to $3094.14 per ounce.
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Ugandan Museveni arrives at South Sudan amid political crisis
The Ugandan President Yoweri Mueveni arrived on South Sudan's border on Thursday. This was the highest-level mission to the country since the clashes in the region and the arrest of the vice president raised fears that civil war could return. Salva Kiir of South Sudan met Museveni at the airport. His administration accused First Vice-President Riek Makar of igniting rebellion and placed him under house arrest. In public remarks made at Juba Airport, the Ugandan leader did not directly refer to the crisis. His military had been invited to South Sudan to assist in securing the capital last month. This visit comes after mediation missions conducted by the African Union this week and an East African regional organization to de-escalate the crisis. Museveni said he will hold talks with reporters "aimed at strengthening our bilateral relations and increasing cooperation between our nations". Kiir stated that the two leaders will discuss "current political events in the country". The United Nations has warned that the young nation of the world could be at the brink of a full-blown ethnic conflict due to the standoff between Kiir, and Machar. Both men led opposing forces during a civil war from 2013-2018 that resulted in the deaths of hundreds of thousands. Uganda supported Kiir's troops during the civil conflict and sent troops to the Northeast last month, amid fighting between South Sudanese military and an ethnic Nuer milita. Machar's forces, which were mostly Nuer, were allied with White Army militias during the civil conflict. However his party denies that there are still links. Muhoozi Kainerugaba - Museveni's own son - said that he ordered Ugandan forces not to attack the White Army as long as they stopped offensives against Ugandan soldiers. Machar's Party says that the Ugandan intervention violates South Sudan's embargo on arms. Analysts believe Kiir is trying to solidify his position in the face of discontent among his own party and speculation regarding his succession plan. (Writing and editing by George Obulutsa, Hereward Holland and Andrew Heavens; Aaron Ross and Andrew Heavens).
Trump announces auto tariffs ahead of the 'Liberation Day Trade Announcement'
As President Barack Obama announced on Wednesday, the U.S. Government will impose a 25% duty on imports of automobiles and auto parts on April 3, as well as a similar tariff on auto components a month after.
Donald Trump
Prepare to Announce Further
trade barriers
This could lead to a global trade war, and even cause the economy to collapse.
Trump's "Liberation Day announcement" is expected to undo existing trade agreements that date back to 1947, and will lead to countermeasures by close U.S. ally countries.
Trump has been keeping the world guessing about the details of the White House Rose Garden ceremony, scheduled to take place at 4 p.m. Eastern Time (2000 GMT).
Persons familiar with the deliberations of the administration said that the tariffs would be substantial and affect a large number of countries including close allies.
One source claimed that Trump could remove the exemption of $800 for "de minimis" shipments to China.
The new tariffs will be implemented immediately after Trump's announcement, even though the administration hasn't yet published an official notification as required.
The administration did, however, publish an official notification that a separate tariff set on
auto imports
What Trump announced last Thursday will come into effect.
"IT'S LIBERATION Day in America!" Trump posted a message on his social media platform.
Trump, who called tariffs the "most beautiful words in the dictionary," said that his plans for reciprocity would equalize U.S. tariffs with those charged by other countries at higher rates and counter their non-tariff obstacles which he claims disadvantage U.S. Exports.
Peter Navarro, Trump's adviser on trade, said that the auto tariffs will return strategic manufacturing capabilities to the United States. "This isn't protectionism. He wrote, "It's restoration", in USA Today.
Doug Ford, Premier of Ontario in Canada, said that he wasn't sure if Trump officials understood U.S. Auto Industry supply chain system which is closely linked to other countries. He said, "This is the ridiculous thing I've ever seen" on CNBC.
The warnings of outside economists that tariffs may slow down the global economy and raise the risk for recession have led to the increase of living costs by thousands of dollars for the average American family. Businesses complain that Trump's threats have made it hard to plan their operations.
Steve Sosnick is the chief strategist of Interactive Brokers. He said, "I have never seen a situation with stakes this high but the outcome so unpredictable." The devil will be in the detail and nobody knows what the details are.
Business leaders across sectors, including automobiles, ocean freight shipping, luxury products, and more, waited to find out what was going to happen.
Peter Sand, the chief analyst of freight pricing platform Xeneta, said: "You can't make important decisions about your supply chain if the rules keep changing." France was expecting a "pretty strong" hit, which could result in tariffs between 20-25%.
STACKING THE TARIFFS In less than 10 weeks after taking office, Trump imposed new duties of 20% on all imports coming from China, and restored the 25% duty on steel and aluminium, which now extends to downstream products worth nearly $150 billion.
The administration announced on Wednesday that this would include all beer imports and empty aluminum cans.
On Wednesday, the one-month reprieve from 25% tariffs on most Canadian and Mexican products is set to expire.
Officials in the Trump administration have stated that Trump's tariffs are stacked on top of previous rates. For example, a Mexican car that was previously subject to a 2.5% tariff to enter the U.S., would now be subject to the fentanyl and auto sectoral tariffs for a total tariff rate of 52.5% -- plus any reciprocal duty Trump may impose against Mexican goods.
The uncertainty surrounding duties is impacting consumer, investor and business confidence. On Wednesday, global stocks fell while gold, a safe haven asset, held near record levels.
Since February, U.S. stock prices have lost nearly $5 trillion in value.
Dollar and other currencies remained in tight ranges as traders awaited the details of Trump's plan. The fear of tariffs has already affected manufacturing across the world, and also boosted sales of imported autos and products.
RETALIATORY MEASURES A number of trading partners, including Australia, Europe, Canada, and Mexico, have pledged to respond to the US with retaliatory duties and countermeasures. Some have even sought to negotiate directly with the White House.
Trump has claimed that American workers, manufacturers and businesses have suffered for decades from free-trade agreements that have lowered global barriers and increased the U.S. market of imported goods by $3 trillion. This led to a goods deficit exceeding $1.2 trillion.
According to the Yale University Budget Lab, a 20% additional tariff would cost an average U.S. family at least $3400.
(source: Reuters)