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Residents claim that gunmen killed at least 20 peoples in a mining village in Nigeria's Zamfara State
Residents and Amnesty International reported that gunmen killed at least twenty people in a raid on a gold-mining village in the northwestern state of Zamfara in Nigeria. The motive of the attack was not immediately clear, but Zamfara has been plagued by kidnappings and ransoms committed by armed groups who target both security forces. The spokesperson for the Zamfara Police did not respond immediately to a request for comment. Ismail Hassan told a resident that gunmen opened fire in their hundreds on miners in the village of Gobirawa Chali, in the Maru Local Government Area of Zamfara State, on Thursday afternoon. A firefight followed, with more than 20 people dying in the mining community of Gobirawa Chali. Isah Ibrahim, a resident of the area, reported that they recovered 21 bodies and several injured following the attack. Amnesty International stated in a press release that the gunmen killed over 20 people in Gobirawa Chali by going house to house. In the last two years, armed gangs of men who operate from remote forests have murdered and kidnapped hundreds in northwest Nigeria. Armed forces in the country are stretched thin and have had difficulty securing large remote areas. Insecurity in Nigeria is causing the military to be stretched. This includes an Islamist insurgency, farmer-herder conflicts in the central belt, and separatist movements in southern Nigeria. Reporting by Ahmed Kingimi, Writing by Chijioke Ahuocha, Editing by Alexandra Hudson
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US wants to increase offshore oil drilling through easing of pressure rules
The U.S. Interior Department announced on Thursday that it had implemented new guidelines regarding pressure differentials allowed in certain types of oil drilling, in a part of the Gulf of Mexico. The department expects these changes to boost U.S. output of oil. The Energy Dominance Council, led by Doug Burgum, Interior Secretary to President Donald Trump, is seeking ways to reduce costs for oil and natural gas producers, lower regulations, and increase oil production, which was at record levels during the tenure of former President Joe Biden. Operators working in the Wilcox formation, which is part of the waters Trump has renamed as the Gulf of America can now produce oil using multiple offshore reservoirs by increasing the pressure difference. The Paleogene rules for so-called "downhole commingling" between reservoirs expand the allowed differential pressure from 200 pounds per sq inch to 1500 psi. Interior anticipates that the changes will increase oil production by 100,000 barrels a day in the region within 10 years. Burgum said that this was a "major milestone" in the quest to achieve American Energy Dominance. "We are delivering more American Energy, more efficiently and with fewer roadblocks." Interior's Bureau of Safety and Environmental Enforcement stated that the producers must comply with conditions, including regular performance reporting and pressure monitoring. The Bureau of Ocean Drilling issued safety regulations for offshore drillers late in the Biden Administration, as new technology allows them to work under extreme pressures subsea. High pressures may unlock untapped oil reserves worth billions of barrels around the globe, but safety concerns are looming about possible leaks at drilling sites. Scott Eustis is the director of community science for the Healthy Gulf non-profit group. He said, "This change will make more money for those who push paper, but it will also make the job more dangerous for those who push tools out on the water." Erik Milito of the National Ocean Industries Association said that the rule change was "designed to unlock potential stranded oil and gas production offshore while keeping safety, environmental protection, and front and center." The Biden-era regulations came after Chevron began production at its Anchor project, owned by TotalEnergies, which was the world's first project to reach reservoir depths as deep as 34,000 feet (10363 m) at 20,000 psi. (Reporting and editing by Hugh Lawson; Timothy Gardner)
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China's solar and wind power capacity surpasses thermal for the first time ever, says energy regulator
China's wind- and solar-powered power generation capacity soared to 1,482 Gigawatts at the end of last month, surpassing fossil fuels thermal power for the first ever time in the history of the country, said the country's Energy Regulator on Friday. China, despite being one of the few countries that still uses coal to generate electricity, has been a leader in expanding renewable energy, and new installations have reached record levels. The country set the goal of increasing wind and solar power to 1,200 GW in 2030 and achieved that target six years earlier last year. Beijing has been urged to double its target by campaigners. Grid access is still a problem. Although the proportion of renewable energy in China's mix of electricity has increased, its contribution to power generation hasn't. Grid firms continue to prioritize electricity from fossil fuel plants. The National Energy Administration announced on Friday that, despite accounting for more than half the total installed capacity, wind and solar power accounted 22.5% of electricity delivered to customers in the first three months of this year. Natixis, a French investment firm, said that this year, a decline in overseas demand for China’s panels and turbines, fueled by escalating protectionism, encouraged the country to "front-load” new renewable energy capacities at home even though their grids weren't yet ready to receive them. In the end, much of China's wind and solar power has gone to waste. China, despite its pledge to reduce coal dependence, began building a further 99.5 GW in coal-fired capacity by 2024. The country says that new coal-fired power projects will support renewables which rely partly on intermittent energy sources. China has the largest fleet in the world of coal-burning plants and is the biggest emitter of carbon dioxide. It has committed to reducing coal consumption between 2026 and 2030, with the goal of reaching a CO2 peak by the end the decade. The United Nations Paris Agreement also calls for a 65% reduction in the carbon intensity of 2005 - i.e., emissions per unit of GDP growth generated - before 2030. Lauri Myllivirta is a senior fellow at the Asia Society Policy Institute. She said that the country remains "badly behind" in its targets, and the newly-commissioned coal plants may continue to "crowd" out clean energy. After several years of slow progression, it will be difficult to deliver China's headline agreement under the Paris Agreement," Myllivirta stated in a report released by Dialogue Earth Thursday. David Stanway is the reporter. Mark Potter (Editing)
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Despite tariffs, some European companies are hesitant to expand in the US
The erratic tariff policy of U.S. president Donald Trump is making some European smaller companies question whether it's worth expanding into the U.S. Trump wants to encourage foreign companies to invest in the United States by imposing levies on steel, cognac, cars, and sandals. This will create new factories, and thousands of American jobs. The auto and pharmaceutical sectors have been quick to announce or consider expansions. However, some smaller companies are hesitant about committing. EuroGroup Laminations, an Italian company, pays no import duties on the rotors, stators, and other components it provides to U.S. automakers, such as Ford and GM. These products are produced in Mexico and comply with current import regulations. Marco Arduini, CEO of the company, said that even if the company had to move production to the U.S., it would be subject to tariffs on the type of steel it uses for its automotive parts. He said that avoiding potential U.S. Tariffs would not compensate for the extra costs or low availability of steel. U.S. Labour costs are also a concern, as they can be up to six-times higher in Mexico. Due to the current situation, including the possibility that tariffs could trigger a U.S. economic recession, ebm papst, a German motor and fan manufacturer has halted plans to build a new U.S. plant or to expand an existing U.S. site. Klaus Geissdoerfer, CEO of the company, said that if there were an economic downturn on American soil, it could affect demand in a different way. Many economies are built on the strength of small and medium-sized businesses (SMEs), including Italy and Germany. Both countries are members of the European Union and major exporters into the United States. They may be able to react more quickly to new trade risks than larger companies because they have less financial cushioning. Marc Tenbieg is the head of DMB, the association representing Germany's SMEs. DMB said in separate comments that a few SMEs are currently reviewing their U.S. business as a result Trump's policies. Andrew Adair said that some member companies of the German engineering association VDMA have delayed purchases. He made this statement following a visit to the United States in early August. He said, "The industry appears to be on hold at the moment." Trump announced a series broad tariffs on goods from other countries imported into the United States on April 2. The tariffs included a 20% on EU imports, which was then lowered to 10% as part of what Trump called a "90-day pause" following the selloff in U.S. stocks. Trump's statements that other countries "screwed" the U.S. over the years, reflecting his anger at U.S. Trade Deficits including one of 235.6 billion dollars with the 27-nation EU, have also raised the temperature in the diplomatic and political arena. LAPP in Germany, which produces everything from wires and cables to robotics for factory, has maintained its plans to double the production capacity at their New Jersey site by 2025. Matthias Lapp, CEO of Lapp & Co., said: "As a business family, we plan on the long-term, not just for elections." Tariffs have the potential to affect demand and inflation in the United States. RBC Capital estimates that imports account for 10% of U.S. consumer spending and that "it will be relatively difficult for consumers" to switch away from imported products. The consultancy AlixPartners believes that the average U.S. household's discretionary spending in a post tariff world will drop by more than 10 percent to $27,000 and recommends companies adopt a pause-and-monitor approach. Eurostat data show that in each of the three previous years, the EU exported an average of more than 500 billion euro of goods to the U.S. These were mostly pharmaceuticals and vehicles, but also machinery. Trump's primary targets are the steel, auto and car part manufacturers in the EU. The U.S. is still the EU's largest trading partner. However, the new tariffs have sparked some political resistance against greater exposure. French President Emmanuel Macron has asked European firms to temporarily suspend their planned investments. Industry groups urge European companies to instead focus on other foreign markets, such as India and Latin America. Sebastian Zank is the head of Scope's corporates rating production. He said, "We have seen how quickly things can change." Everyone will remain seated until the picture that emerges can be described as "sustainable."
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LyondellBasell's quarterly profit forecast misses on account of weak volume
LyondellBasell missed Wall Street's quarterly profits expectations on Friday due to maintenance activities and lower volumes of its largest segment, supplying raw materials for the automotive, construction, and electronics industries. Following the results, shares of the petrochemicals producer fell 2.5% on premarket trading. The company announced an improvement plan for cash flow to help it navigate current macroeconomic volatility, and boost its earnings to $500 million. The chemical industry has been suffering due to a slump in demand and the rising cost of raw materials, particularly in Europe. Businesses are also being forced to reconsider their strategy in the region due to the strict regulatory environment. In a recent statement, CEO Peter Vanacker stated that "we continue to take reasonable measures to improve our near-term cash flow generation and remain committed to delivering our three-pillar strategies through this extended industry downturn." Eastman Chemical, a peer company, announced plans on Thursday to reduce expenses as a result of the market volatility caused by President Trump's tariff plans. The business activity in the Eurozone barely increased in February as a slight increase in services barely compensated for the ongoing decline in manufacturing. LyondellBasell’s largest segment in terms of sales volume, olefins and polyolefins, Americas, reported core adjusted earnings of $251 millions, down from the $521 million earned last year as higher feedstock prices impacted margins. The adjusted core profit for its Intermediates & Derivatives segment, which produces oxyfuels, intermediate chemicals and intermediate chemicals, dropped 69.9% from the previous period to $94 millions. The revenue for the quarter ending March 31 decreased from $8.3 Billion last year to $7.7 Billion. In the second quarter, the company anticipates seasonal improvements in demand across all businesses. According to LSEG, on an adjusted basis the company reported a profit per share of 33 cents in the quarter of January-March, compared to analysts' estimates of 43 cents. (Reporting from Pooja Menon, Bengaluru. Editing by Vijay Kishore.)
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Secretary of State for India says India will offer incentives to steelmakers in order to promote decarbonisation
The federal secretary of steel announced on Friday that India has a number of incentives in place to encourage the production of green-colored steel and to drive the decarbonisation efforts of local steelmakers. India wants to reduce its greenhouse gases emissions. India, after China the largest steel producer in the world, is working on a "green steel" policy to reduce carbon emissions from the production and procurement of this key building material. Sandeep Poundrik, speaking at a recent industry event, said: "We're trying to do many things to encourage green steel... including working on a project... where we'll try to support industry decarbonisation." The government will hopefully approve it soon." Poundrik said that firms would be encouraged to produce greener steel and use renewable energy. The official also said that the government was working to mandate a certain percentage green steel in all state-funded projects. India last year defined green steel to be steel that emits less than 2,2 tonnes of carbon dioxide per tonne of production. (Reporting by Neha Arora in Mumbai and Hritam Mukherjee in Bengaluru; Editing by Mrigank Dhaniwala)
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Asian and European stock markets steady; US stocks jittery due to conflicting trade tension signals
The dollar is on track to see its first weekly gain in over a month as investors take comfort in signs that the U.S., China and other countries are willing to end their trade war. In a sign that investors are unsure of how long this relief will last, U.S. Stock Futures were slightly down by 1048 GMT after the publication of an interview in Time magazine with U.S. president Donald Trump, where he stated that high tariffs on imports from abroad a year hence would be a "total win". Trump said that his administration had been in contact with China about a possible tariff agreement and that Chinese President Xi Jinping called him. This was contrary to comments made by Chinese officials on Thursday. The STOXX Index, the benchmark for Europe, rose by 0.27% after China removed some U.S. imported goods from its 125% tariffs. This was the clearest indication yet that Beijing responded to concerns over the impact of titt-for-tat duties on its economy. U.S. Futures started positively after Alphabet, the parent company of Google and tech giant Alphabet, beat profit expectations and confirmed AI spending targets. Its shares rose nearly 5% after-hours and pulled along its peers. S&P emini futures were down 0.26% by 1048 GMT, and NASDAQ 100 futures were down 0.36%. . The dollar, after a turbulent few weeks that saw tariff announcements and reversals, as well as a flight from U.S. assets and assets, has found its footing at around $1.1354 for the euro and 143.3 Japaneseyen. Eli Lee, Chief Investment Strategist at Bank of Singapore said that the peak of tariff threats is likely to be behind us. Both sides have stated that they will not increase rates above current levels. The tit-for-tat tariffs, which began on April 2, when U.S. president Donald Trump announced hefty import duties, had threatened to stall the trade between two of the world's largest economies. They also sparked concerns of a global slowdown. UNEASY CALM Hong Kong's Hang Seng index rose 1%, and mainland China’s Shanghai Composite Index and blue-chip CSI300 also saw small gains. The Nikkei 225 index rose 1.8% in Japan on Friday, regaining all of its losses following Trump's announcement that the United States would be imposing the highest tariffs it has ever seen. Trump suspended most of these tariffs, with the exception of China, which will have a 10% tariff. In a client note, ING currency analyst Francesco Pesole said that there is a sense among market participants that they can now impose a more favourable stance from the U.S. Government. Investors will seek confirmation of a more optimistic view on U.S. Assets to justify further dollar gains. The U.S. Dollar Index was up by 0.2% this week, at 99.623, while U.S. Treasury Yields remained flat. WARNING SIGNAGE The gold price, which has soared in this year due to investors seeking safe haven assets that are not tied to the dollar, fell 1% on the Friday, and was heading towards a weekly decline on signs of a possible de-escalation in trade tensions. There were plenty of warnings that the calm surface on the markets may not last. Procter & Gamble cut or withdrawn forecasts for American Airlines, PepsiCo and Chipotle Mexican Restaurant overnight due to increased consumer uncertainty. The Gold/S&P500 ratio, which is a measure of investor gloom and reflects the mood of the market, has reached its highest level since 2020, when the bear market was triggered by the pandemic.
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Phillips 66, a US refiner, reports a larger-than-expected quarter loss
Phillips 66 announced a larger-than-expected first-quarter loss on Friday. Lower refining margins due to widespread maintenance and turnaround activities across the U.S. refinery sector weighed down on its performance. In preparation for summer driving, U.S. refineries undergo seasonal maintenance and turn-around activities. This scheduled downtime can temporarily impact refinery performance and revenue capture. Mark Lashier, CEO of the company said: "Our results are not only reflective of a macro-environment that is challenging but also reflect our biggest spring turnaround program ever." The refining division of the company posted a $937 million loss during the first quarter of this year, compared to a $216 million profit a year earlier. Phillips 66 reported that its realized refining profit margins dropped to $6.81 a barrel in the quarter January-March, down from $11.01 a barrel a year ago. Its refinery usage was 80%, compared to 92% a year ago. According to data compiled and analyzed by LSEG, the Houston-based company reported an adjusted loss per share of 90 cents for the three-month period ended March 31. This compares with the analysts' average loss estimate of 72 cents. Reporting by Vallari Shrivastava, Bengaluru. Editing by Maju Sam and Shilpi Majumdar.
British currency risk management firm Argentex names new interim CEO
Argentex, a FX company, replaced its CEO on Friday and appointed its chief operating office as interim CEO. This comes at a time of liquidity crisis due to the ongoing turmoil in the financial markets.
Argentex announced late on Thursday that it is in advanced discussions to be acquired for 2.49 pence a share by cross-border payment provider IFX Payments. This would value the company at approximately 3 million pounds ($3.99m).
The company had revealed the discussions earlier in the week as well as possible emergency funding, while it battles against the whipsawing currency market.
It also announced on Thursday that it would be seeking additional liquidity support in the coming week.
The London-listed firm is one of the earliest casualties in a prolonged bout of market turmoil.
The company had suspended trading of its shares on April 22, following sharp drops in the U.S. Dollar, due to trade tensions between President Donald Trump and Federal Reserve Chairman Jerome Powell. This spooked many investors into selling U.S. assets.
Argentex announced on Friday that CEO Jim Ormonde has left the company with immediate effect. COO Tim Rudman was appointed interim chief. Reporting and editing by Mrigank Dhaniwala, Simone Lobo, Dhanush Vignesh Baby in Bengaluru.
(source: Reuters)