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Official: US panel split over Nippon Steel bid but sees path forward
The White House said that a national security panel had divided opinions on its recommendation to Donald Trump regarding Nippon Steel’s bid for U.S. Steel. However, most members of the panel believe any security concerns posed by this deal can be addressed. According to an executive order Trump signed last month, the Committee on Foreign Investment in the U.S. on Tuesday submitted a report to Trump regarding the national security implications of the proposed merger. The document was submitted by Nippon Steel after it increased its investment pledge in U.S. Steel from $14 billion to $14 trillion in a desperate bid to get approval. The White House official stated in a press release that "we've received the reports and the President will examine the recommendations of each agencies to determine if further action is needed on this issue." The CFIUS agencies did not agree on their recommendations, but the majority believed that any risks could be mitigated through mitigation, the person said, declining to give his name because the matter wasn't public. Nippon Steel refused to comment. U.S. Steel didn't immediately respond to an inquiry for comment. The recommendation is in line with the executive order that was signed by Trump last week, and which instructed CFIUS to determine whether the measures proposed by companies would mitigate the national security threats previously identified by CFIUS. In the April directive, it was also requested that a statement be made describing each agency's position as a CFIUS member as well as its reasons. Trump has 15 days from now to decide on the fate of this transaction. However, the timeline may slip. In January, after a CFIUS review of the previous deal, Joe Biden, then President of the United States blocked it on grounds related to national security. Companies sued each other, claiming that they had not received a fair evaluation process. The Biden White House rejected this view. This week, it was reported that Nippon Steel had said if the merger were approved, they would invest up to $14 billion in U.S. Steel operations. That includes $4 billion for a new mill. (Reporting and editing by Leslie Adler, David Gregorio, Alexandra Alper)
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Official: US panel split over Nippon Steel bid but sees path forward
The recommendation of a national security panel to President Donald Trump regarding the bid by Japan's Nippon Steel for U.S. Steel was divided, but the majority of panel members believed that any security risks presented by the deal could be addressed, according to a White House spokesperson. According to an executive order Trump signed last month, the Committee on Foreign Investment in the U.S. on Tuesday submitted a report to Trump regarding the national security implications of the proposed merger. The document was submitted by Nippon Steel after it increased its investment pledge in U.S. Steel from $14 billion to $14.75 billion as a last ditch effort to win approval. The White House official stated in a press release that "we've received the reports and the President will examine the recommendations of each agencies to determine if further action is needed on this issue." The CFIUS agencies did not agree on their recommendations, but most believed that any risks could be mitigated through mitigation, the person said, declining to give his name because the matter wasn't public. Nippon Steel refused to comment. U.S. Steel didn't immediately respond to an inquiry for comment. (Reporting and editing by Leslie Adler, David Gregorio and Alexandra Alper)
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Sources say Phillips 66 will begin laying off workers at its Los Angeles refinery in December.
Phillips 66 is expected to lay off most workers at its 139,000-barrel-per-day Los Angeles-area refinery in December, sources familiar with the matter said on Thursday. The company announced that it would shut down the facility in October and start winding down its operations in October 2025. Two months later, the company will start reducing its workforce. About 600 employees work at the Los Angeles facility, along with 300 contractors. The United Steelworkers Union represents over half of the hourly employees. Sources said that a few of the retained employees will be transferred to Phillips 66 Los Angeles Marine Oil Terminal. Phillips 66, a Phillips 66 spokeswoman said: "Since it was announced that these facilities would be idled, Phillips 66 is committed to helping its employees and contractors make this transition." The spokesperson refused to comment on the plans following the closure of Los Angeles' refinery. Valero Energy announced in 2013 that it would close its Benicia refinery (145,000 bpd), one of the two refineries remaining in the state. Two refineries in the state produce about 20% of the gasoline that is sold.
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Trump will sign an order to boost nuclear energy as early as Friday, according to sources
Four sources said that U.S. president Donald Trump would sign executive orders on Friday to help jumpstart the nuclear industry. These orders will ease the approval process for new reactors, and strengthen the fuel supply chain. Trump, on his first official day in office, declared an emergency energy situation due to the rise in demand for power that has been seen in the last two decades. Chris Wright, energy secretary, said that the race to develop the power sources and data centres needed for AI was "Manhattan Project 2", in reference to the massive U.S. project during World War II, to develop atomic weapons. According to a draft summary, Trump will use the Cold War Defense Production Act in order to declare a state of emergency due to the U.S.'s dependence on Russia and China regarding enriched uranium and nuclear fuel processing. The summary directs agencies to allow and site new nuclear installations and directs Departments of Energy and Defense (DoD) to identify federal lands and sites for nuclear deployment and streamline processes to get these built. The Energy Department is also encouraged to use direct loans and loan guarantees to expand the reactor build-out. In his first term, Trump used the Loan Programs Office to support a nuclear power plant in Georgia. The LPO now has hundreds billions in funding thanks to legislation passed by former president Joe Biden's Administration, but has been hard hit by job cuts under Trump's second presidency. The White House didn't immediately respond to our request for comment. It is not uncommon for the exact wording and text of executive orders to be changed. There is also no guarantee that certain elements will remain intact or unchanged during the final stages. China is the country that has grown the fastest when it comes to nuclear energy. The United States, which was the first nation to develop nuclear power, also has the largest nuclear power capacity. According to one source, officials from the nuclear energy institute and Constellation, the utility with the largest U.S. capacity of reactors, were invited Friday afternoon to a signing ceremony. Constellation and NEI didn't immediately respond to comments. The Trump administration is debating draft executive orders that would boost nuclear energy. These proposed measures included giving the administration greater power to approve reactors, and reforming the Nuclear Regulatory Commission (NRC), a five-person panel that approves reactors. The Democrats like nuclear power because it emits virtually no carbon dioxide. Republicans prefer it because of its reliability compared to solar and wind energy, which are intermittent. This problem can be solved with battery storage. The United States has no permanent disposal facility for radioactive waste produced by nuclear power. (Reporting and editing by Alistair Bell; Timothy Gardner)
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Trump will sign an order to boost nuclear energy as early as Friday, according to sources
Four sources said that U.S. president Donald Trump would sign executive orders on Friday to help jumpstart the nuclear industry. These executive orders will ease the approval process for new reactors, and strengthen the fuel supply chain. Trump, on his first official day in office, declared an emergency energy situation due to the rise in demand for power that has been seen in the last two decades. Chris Wright, energy secretary, said that the race to develop the power sources and data centres needed for AI was "Manhattan Project 2", in reference to the massive U.S. project during World War II, to develop atomic weapons. According to a draft summary, Trump will use the Cold War Defense Production Act in order to declare a state of emergency due to the U.S.'s dependence on Russia and China regarding enriched uranium and nuclear fuel processing. The summary directs agencies to allow and site new nuclear installations and directs Departments of Energy and Defense (DoD) to identify federal lands and sites for nuclear deployment and streamline processes to get these built. The Energy Department is also encouraged to use direct loans and loan guarantees to expand the reactor build-out. In his first term, Trump used the Loan Programs Office to support a nuclear power plant in Georgia. The LPO now has hundreds billions in funding thanks to legislation passed by former president Joe Biden's Administration, but has been hard hit by job cuts under Trump's second presidency. The White House didn't immediately respond to our request for comment. It is not uncommon for the exact wording and text of executive orders to be changed. There is also no guarantee that certain elements will remain intact or unchanged during the final stages. China is the country that has grown the fastest when it comes to nuclear energy. The United States, which was the first nation to develop nuclear power, also has the largest nuclear power capacity. According to one source, officials from the nuclear energy institute and Constellation, the utility with the largest U.S. capacity of reactors, were invited Friday afternoon to a signing ceremony. Constellation and NEI didn't immediately respond to comments. The Trump administration is debating draft executive orders that would boost nuclear energy. These proposed measures included giving the administration greater power to approve reactors, and reforming the Nuclear Regulatory Commission (NRC), a five-person panel that approves reactors. The Democrats like nuclear power because it emits virtually no carbon dioxide. Republicans prefer it because of its reliability compared to solar and wind energy, which are intermittent. This problem can be solved with battery storage. The United States has no permanent disposal facility for radioactive waste produced by nuclear power. (Reporting and editing by Alistair Bell; Timothy Gardner)
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Treasury yields decline, US stocks rise; investors evaluate US tax bill
The 30-year U.S. bond yields rose to their highest level in nearly a year before they eased on Thursday. Worries about the U.S. budget outlook and demand for debt remained, but stocks on Wall Street, including tech-related stocks, rose. After recent losses, the U.S. Dollar has strengthened. The yields increased earlier after the U.S. House of Representatives passed the tax bill of President Donald Trump by a single solitary vote late Thursday, adding to concerns about the debt load of the country. The bill would provide new tax breaks for car loans and tips, and increase spending on border security and military. The Congressional Budget Office (CBO) estimates that Trump's tax cut bill will add $3.8 billion to the $36.2 trillion of U.S. national debt in the next decade. Moody's was the last major credit rating agency to remove the U.S. from its triple-A status late last week. Some buyers were attracted by the recent drop in bond prices, which moves inversely with yields. Last week, the 30-year bond yield dropped 3.7 basis points to 5.0521%. Weak demand for the sale of $20 billion in 20-year bonds Wednesday heightened concerns over reduced interest rates on U.S. government debt. The benchmark 10-year and 30-year yields both rose by about 50 basis points in the last month. Ed Al-Hussainy is a senior rates analyst with Columbia Threadneedle Investments. He said that the Treasury market was looking for a "circuit breaker". This can be in the form poor labor market statistics to trigger (Federal Reserve's) cuts and trigger an assessment of the strength the economy. U.S. stock prices rose on Thursday, after dropping in the previous session. Jake Dollarhide is the chief executive officer of Longbow Asset Management, located in Tulsa. The market is a safe haven for technology at this time. The Dow Jones Industrial Average rose by 177.19, or 0.4%, to 42.037.60. The S&P 500 gained 28.89, or 0.4%, to 5.873.50. And the Nasdaq Composite gained 176.57, or 1.94 percent, to 19,049.21. Alphabet shares rose 2.3% while the sector of communication services rose 1%. The MSCI index of global stocks rose by 0.09 points or 0.01% to 874.00. The pan-European STOXX 600 fell by 0.64%. Figures showed that the British government borrowed more in April than was expected, and euro zone businesses unexpectedly returned to contraction. After the data, the euro fell while the U.S. Dollar rose after three consecutive days of losses. The euro last fell 0.41% to $1.1283. The dollar gained 0.29% against the Japanese yen to reach 144.08. Bitcoin, on the other hand, reached a new high partly because investors were looking for alternatives to U.S.-based assets. Bitcoin's last gain was 3.25%, at $111 795 51. The oil price was affected by a report that OPEC+ has discussed a production boost for July. Brent futures dropped 47 cents or 0.72% to settle at $64.44 per barrel. U.S. West Texas Intermediate Crude eased 37 cents or 0.6% to settle at $60.20.
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Rio Tinto to build second lithium project in Chile
Rio Tinto, the global miner, has been chosen by Chilean authorities for a second time in this week to be a partner on a new lithium project. The state-run mining company ENAMI announced its partnership with Altoandinos Lithium Project Thursday. ENAMI reported that Rio Tinto would initially invest $425 million in the project. This will total an investment of $3 Billion. ENAMI holds an initial stake of 49 % and two board positions, while Rio will have three board members. ENAMI stated that Rio's investment in Altoandinos will cover a feasibility study, the use of a pilot plant on its Rincon project, as well as its direct lithium extraction technologies. ENAMI stated in a press release that "Rio Tinto offers a financing solution which ensures the resources necessary for the project up until commercial operation." Rio Tinto stated in a separate press release that it would "advance towards binding agreements as soon as possible", and that feasibility studies will enable a final decision on investment. ENAMI also considered French mining company Eramet, Chinese automaker BYD and Korean Steel Group Posco as potential developers. Ivan Mlynarz, ENAMI's head, said: "After an in-depth analysis we found that Rio Tinto offered the best value to ENAMI." Rio was selected on Monday by the state-run copper mining company Codelco for its Maricunga Lithium project. (Reporting and editing by Kyra Madry; Daina Beth Solon)
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Enel's Italian shareholders have approved up to 3.5 billion euros in investor rewards
Enel, Italy's largest utility, approved on Thursday a plan for a share buyback and the option to cancel shares acquired without reducing capital. This allows Enel to reward its investors more. The board was given the authority to buy back up to 500,000,000 shares at a maximum cost of 3.5 billion Euros ($3.95 billion). Enel’s board will now decide when and how much to spend on the first tranche. Financial analysts say the utility controlled by the government could spend up to 1 billion euros on the first tranche of buybacks, in an effort to increase the value. Share buyback programs were introduced by European oil and gas companies, including Shell TotalEnergies, and Eni of Italy in order to attract investors. Endesa's Spanish subsidiary, announced recently a share buyback program worth up to two billion euros by 2027. A 500 million euro tranche of the programme was launched at the beginning of April.
Sources say that Congo and Rwanda will sign an agreement in the US on a peace path amid talks about minerals
Sources have confirmed that Congo and Rwanda will sign an agreement on Friday in Washington to promote economic and peace development. This is part of a diplomatic effort to end violence following an offensive by Rwandan-backed insurgents in eastern Congo.
Both countries hope to gain significant U.S. investment in minerals. The agreement gives rise to hopes that the latest violence cycle in a conflict rooted decades ago in the Rwandan genocide will ease. Previous ceasefire calls did not result in a lasting break in fighting.
Both countries' foreign ministries are expected to sign the agreement at a signing ceremony alongside U.S. State Secretary Marco Rubio. Washington is in negotiations to invest billions in Congo's mineral deposits, including copper, cobalt, and lithium. These minerals are used in cars and mobile phones. Rwanda announced this week that it is also in talks with Washington regarding a potential minerals deal.
The violence in Congo has increased since the M23 rebels, backed by Rwanda, launched a major assault in January. This led to the capture two of the largest cities in eastern Congo.
According to the United Nations and Western governments, Rwanda provided weapons and troops for M23. Rwanda denies supporting M23, and claims its military acted in self defense against Congo's Army and a militia formed by perpetrators from the 1994 genocide.
Qatar and the U.S. both have expressed an interest in a mediated resolution.
Qatar mediated a surprise meeting between Congolese president Felix Tshisekedi, and his Rwandan counterpart Paul Kagame in March. The two leaders demanded a ceasefire.
Qatar also hosted talks between Congo, M23 and other parties. This week both sides released a joint statement in which they pledged to work for peace and express their "commitment" to an immediate cessation to hostilities.
'VERY BROAD'
According to a diplomatic source, the agreement that will be signed this Friday is intended to promote a "pathway towards peace, stability and integrated economic growth" in eastern Congo, as well as "the return of normal bilateral relationships".
According to a second source, the agreement was designed to boost investor confidence.
One diplomatic source described it as "a declaration or principles" - a set of very broad goals to strive for.
Both sides will finalize specifics within a few month and, hopefully, an agreement for peace will be signed."
The Trump administration has taken a special interest in Congo since a Congolese senator contacted U.S. officials to pitch a minerals-for-security deal this year.
Washington wants to increase access to minerals, which are currently dominated by China and Chinese mining companies.
The State Department said that the U.S. was interested in a deal and expected any agreement to include a variety of private sector partners.
Erik Prince, a prominent Trump supporter who has agreed to help the Congo tax and secure its mineral wealth earlier this year, is already positioned to back a partnership. (Ange Kasongo contributed additional reporting; Jessica Donati wrote the article; Robbie Corey Boulet, Alison Williams and Alexandra Hudson edited it.)
(source: Reuters)