Latest News
-
Democratic lawmakers challenge U.S. finance chiefs for leaving climate pacts
Democratic lawmakers harshly criticised the chief executives at BlackRock, JPMorgan, and other top financial companies for leaving global coalitions dedicated to combating climate changes. They urged them to maintain their previous commitments, and policy targets to reduce greenhouse gas emission. A letter sent to executives by members of Congress revealed that, in the face of escalating extreme weather and financial risks, the bosses "actively" decided to relinquish leadership over climate change. The letter sent on Thursday also requests records of any communications between the executives and the Trump administration about plans to reduce their environmental and social work. It said: "We are disappointed in your organization for ignoring science and what is good for business and instead giving into political pressure to gain short-term political advantage." The letter was sent to the chief executives of Morgan Stanley and Citigroup, as well as Wells Fargo and Goldman Sachs. It also went out to the heads of State Street, Franklin Templeton, State Street, Invesco, and Pimco (part of Allianz), which is part of the insurer Allianz. Pimco has declined to comment, as have Wells Fargo Bank of America Goldman Sachs Citi State Street JPMorgan. Franklin Templeton wasn't immediately available, while other companies and banks didn't immediately respond to a comment request. The institutions left the Net Zero Banking Alliance or the Net Zero Asset Managers Initiative, or Climate Action 100+. Members of these organizations had committed to either cutting emissions related to their activities or engaging with invested companies on climate issues. Most of the institutions left the groups saying they would still reduce emissions, but they did not mention the political pressures from some Republican politicians who claimed that the companies were unfairly trying to limit funding to the fossil-fuel industry. The burning of coal, oil, and gas is the main cause of global warming. Countries have agreed to reduce these emissions, but the Trump administration has recently pulled out the U.S. The letter also asked the CEOs to confirm that they intend to meet their stated goals for emissions reduction and to describe how they plan to do so. In the letter, they were also asked to explain their reasons for not publishing their progress; to provide details of existing policies and targets to reduce emissions in accordance with the Paris Agreement; and to pledge not to weaken these. It asked the banks if they still intended to set targets and policies for so-called "facilitated", greenhouse gas emissions. These include those that are linked to companies that issue bonds, which a bank has underwritten. In the letter, it was also asked if the banks will stick to the same timeline for emission reduction goals. All companies were asked to provide details of their communications with the Trump Administration regarding the reduction in environmental, social, and governance activities, including any directives freezing funds for climate-related federal programs such as the Greenhouse Gas Reduction Fund.
-
Ontario budget deficit expected to double due to US tariffs
Ontario, Canada's largest province and manufacturing powerhouse forecast on Thursday its biggest budget deficit since the peak of the pandemic. It also predicted a slower transition into surplus, as the province increased spending to support the economic in a trade conflict with the United States. The Progressive Conservative Party, which rules the province, retained its power after a February vote. Premier Doug Ford called the election more than a calendar year in advance, claiming that he wanted a stronger mandate for his fight against President Donald Trump's Tariffs. Ontario exports over three quarters of its goods to the United States. This includes autos, aluminum, and steel, all of which face heavy U.S. tariffs. The province announced that its deficit will increase to C$14.6 Billion ($10.4 Billion), or 1.2%, of the gross domestic product in the current fiscal, which is its largest by far since 2020-21. It was estimated at C$6 Billion in 2024-25. The fiscal year started on April 1. In 2026-27 a deficit of C$7.8billion is expected, followed by a surplus in 2027-2028. This year's forecast was one year behind the October update. Each fiscal year, a reserve of C$2 billion is set aside. The economic growth is expected to drop to 0.8% in this year, from 1.5% by 2024. Quebec, British Columbia, and Alberta are also major provinces that have projected a decline in their finances. Peter Bethlenfalvy, Ontario's Finance Minister, said that the government was delivering on its mandate to protect Ontario, help workers and business weather the storm and create the long-term basis for a competitive, resilient, and strong economy. Bethlenfalvy stated, "We are making investments in workers and infrastructure that will protect Ontario no matter what." The measures include C$5 billion in emergency funding for businesses that are facing tariff-related disruptions. C$1.3 billion will be spent on expanding the manufacturing investment tax credit and C$500,000,000 for a fund to increase processing capacity of critical minerals. The province is one of the largest sub-sovereign lenders in the world. It has also added C$5 billion into a fund which partners with Canadian institution investors to finance infrastructure, including energy, affordable housing and long-term care. The forecast predicts that the net debt-to GDP ratio will increase to 37.9% during this fiscal year, from 36.3% (its lowest level in over a decade) in 2024-25. In 2026-27, a further increase of 38.9% will be expected before the ratio dips to 38.6%. Even though the long-term debt is expected to fall to C$42.8billion in 2025-26, from C$49.5billion in the previous fiscal year, this was higher than anticipated. Further declines are expected in future years.
-
Guinea cancels 46 mining licenses to signal stricter supervision of major operators
A government source said on Thursday that Guinea had revoked licenses for 46 mining companies in the country. Another claimed it could have been up to 53 permits. This is seen by some analysts as a warning to the larger operators of the second largest bauxite producing nation in the world. The move coincides with a growing nationalist sentiment in Niger, Mali, and Burkina Faso where the authorities have tightened their control over their vast mineral resources since coups of 2020. The licences affected cover operations in bauxite and gold mining, as well as diamond and graphite production. However, industry sources claim that none of these companies are significant producers in Guinea's booming mining sector. One mining analyst, familiar with the situation and who asked to remain anonymous due to the sensitive nature, said: "These are small, underperforming licenses." "The impact on the market is negligible." Guinea is the largest producer of bauxite, which is the ore that's used to make aluminium. It also has significant reserves of iron ore and gold. The government didn't immediately respond to inquiries about the reasons behind the revocation of the mining licences, or whether other large-scale operations could face similar action in the future. We've been cleaning up the land register for some time. "We can say this is within the same framework," stated the second mines ministry source. Guinea exported approximately 146.4 million metric tonnes of bauxite in the past year, according to a notice posted on LinkedIn by Guinea's Mines and Geology Ministry. Analysts say that major bauxite-producing nations in West Africa are on course to mine over 200 million tons of bauxite this year, a 35% rise from the record production last year. According to the analyst, the licences of these producers have not been affected by the revocation. The revocation of a mining licence is in line with regulations, but "it could be interpreted by the mining companies as a warning that the government wants to ensure projects are developed in accordance with the agreed terms," said an adviser from a pan African consultancy firm, who asked not to be identified. Maxwell Akalaare Adombila reported, Lewis Jackson contributed additional reporting; David Evans and Sandra Maler edited.
-
Oil prices fall on US-Iran progress, global shares rise in turbulent trade
Oil fell over 2% Thursday, as a possible U.S. Iran nuclear deal increased the prospect of an increase in global crude supply. Wall Street indexes traded mixedly during choppy trading. European shares rose, as corporate earnings were in the spotlight. Gold prices also increased by more than 1%. Global stocks gained 0.24%. Emerging market stocks slipped. In his opening remarks to a two-day event, Jerome Powell, the chair of the U.S. Federal Reserve, said that they felt they needed to reconsider their current approach in monetary policy. This includes both inflation and jobs. The prospects of a breakthrough in peace were shattered when Russian President Vladimir Putin turned down a meeting with Ukrainian President Volodymyr Zelenskiy. Brent futures fell 2.4% after U.S. president Donald Trump said that he was close to reaching a deal with Iran and that Tehran "sort of" accepted the terms. Ali Shamkhani is an advisor to Iran's Supreme leader Ayatollah Ali Khamenei. He said in an interview with NBC that Iran would pledge to never make nuclear weapons, and to get rid of their stockpiles containing highly-enriched uranium. BNP Paribas' economist Paul Hollingsworth noted that the oil price drop exacerbated deflationary forces already at play in Europe, where U.S. trade concerns are still lingering. Hollingsworth stated that "everyone finds it difficult to navigate through the volatility of the announcements." The STOXX 600 index in Europe rose by 0.6% to recover from the earlier losses led by the energy industry. In the latest U.S. data, April retail sales barely increased and unemployment figures were stable. Wall Street saw the Dow Jones Industrial Average rise 0.5%, and the S&P 500 gain 0.4% to 5,914.54 while the Nasdaq Composite fell 0.1%. Walmart reported solid sales in the first quarter, but was the latest retailer to warn of the high cost of Trump's tariffs. It also did not give a second-quarter profit forecast due to uncertainty. Powell, the Fed's Powell, said that "we may be entering a phase of more frequent and possibly more persistent supply shocks". Britain's economy grew by a quicker-than-expected 0.2% in March, data showed. The industrial production of the 20 nations in the eurozone also grew much more than expected, despite a disappointing first quarter GDP growth. The yield on benchmark German 10-year Bunds fell 1 basis point to 2,616%. The yield on the benchmark 10-year U.S. notes dropped 7.5 basis points, to 4.453% amid fears that Trump's proposed budget would add trillions to U.S. government debt. DATA DELUGE The investors were greeted by a plethora good news this week. From a truce in the U.S.-China Trade War to a raft headline-grabbing deals from the Middle East, during Trump's Gulf Tour. By Thursday, the majority of the optimism was gone. MSCI's broadest Asia-Pacific share index outside Japan fell 0.15%. Tony Sycamore is a market analyst for IG. He said, "We had a big party and everyone was hungover. Now we are just recovering and waiting for the next party." The dollar struggled to maintain its gains from the beginning of the week. Its index was down by 0.1% compared to a basket major currencies. The euro is gaining ground. The Korean won was particularly volatile for the second consecutive day after the news broke that South Korea's Deputy Finance Minister Choi Jiyoung had met Robert Kaproth on May 5 to discuss the dollar/won exchange rate. Gold futures in the United States GCcv1 closed 1.2% higher, at $3,226.6.
-
Democratic lawmakers challenge U.S. finance chiefs for leaving climate pacts
Democratic lawmakers harshly criticised the chief executives at BlackRock, JPMorgan, and other top financial companies for leaving global coalitions dedicated to combating climate changes. They urged them to maintain their previous commitments, and policy targets to reduce greenhouse gas emission. A letter sent to executives by members of Congress revealed that, in the face of increasingly severe weather and financial risks, their bosses "actively" decided to relinquish leadership over climate change. The letter sent on Thursday also requests records of any communications between the executives and the Trump administration about plans to reduce their environmental and social work. It said: "We are disappointed in your organization for ignoring science and what is good for business and instead giving into political pressure to gain short-term political advantage." Maxine Waters (Democrat, ranking member of the House Financial Services Committee) sent the letter to the chief executives of Morgan Stanley and Citigroup, as well as Wells Fargo. Franklin Templeton, State Street, Invesco, Pimco and Bank of America. Pimco has declined to comment. Wells Fargo and Bank of America have also declined. Citi, JPMorgan, Citigroup, Goldman Sachs and Wells Fargo did not respond immediately when asked for a comment. The institutions left the Net Zero Banking Alliance or the Net Zero Asset Managers Initiative, or Climate Action 100+. Members of these organizations had committed to either cutting emissions related to their activities or engaging with invested companies on climate issues. Most of the institutions left the groups saying they would still reduce emissions, but they did not mention the political pressures from some Republican politicians who claimed that the companies were unfairly trying to limit funding to the fossil-fuel industry. The burning of coal, oil, and gas is the main cause of global warming. Countries have agreed to reduce these emissions, but the Trump administration has recently pulled out the U.S. The letter also asked the CEOs to confirm that they intend to meet their stated goals for emissions reduction and to describe how they plan to do so. In the letter, they were also asked to explain their reasons for not publishing their progress; to provide details of existing policies and targets to reduce emissions in accordance with the Paris Agreement; and to pledge not to weaken these. It asked the banks if they still intended to set targets and policies for so-called "facilitated", greenhouse gas emissions. These include those that are linked to companies issuing bond issues, which a bank has underwritten. In the letter, it was also asked if the banks will stick to the same timeline for emission reduction goals. All companies were asked to provide details of their communications with the Trump Administration regarding the reduction in environmental, social, and governance activities, including any directives freezing funds for climate-related federal programs such as the Greenhouse Gas Reduction Fund.
-
Trump Administration to audit billions of energy grants awarded by Biden
The Trump administration announced on Thursday that it would audit grants of $15 billion awarded to projects involving the power grid, manufacturing supply chains and other infrastructure during the Biden Administration. Donald Trump has pushed for domestic oil, gas and coal production while also halting the construction of offshore wind farms and taking measures to relax regulations on fossil fuels. Last week, the Republican Trump administration proposed to cut billions of dollars from funding for renewable energy projects and electric car chargers. The DOE has been reviewing the billions that were rushed through the door in the last days of the Biden Administration, Energy Secretary Chris Wright stated. The Energy Department of former Democratic President Joe Biden received billions of dollars from the offices of grid implementation, manufacturing and energy supply chain. The DOE will examine materials, including information that companies submitted as part of award applications, and ask for additional information from companies. Wright's memorandum stated that "if it is determined projects do not meet Standards then DOE can modify the project, or DOE at its discretion may terminate the project, based on the result of DOE evaluation as permitted by law." Wright stated that "any reputable business will have a system in place to evaluate spending and investment before money is spent. The American people deserve nothing less from their federal governments." Bridget Bartol was the deputy chief of staff for the DOE during the Biden Administration. She said that the move is harmful to energy projects. She said that it appears the administration is looking for a legal way to cancel projects they disagree with. Bartol stated that "the fact is, awarded projects have been thoroughly vetted both on a technical and financial basis." The vast majority of the projects under review will likely be aimed at strengthening U.S. industry, increasing electrons, and building secure infrastructure. The Department of Energy has said that it is requesting more information in order to review the awards. It also prioritizes large-scale commercial project. The Energy Department has said that the audit, currently in its first phase, may be extended to other DOE programs offices. This could result in billions of dollars of grants for different projects being reviewed. (Reporting and editing by Leslie Adler; Timothy Gardner)
-
US rooftop solar companies claim that the Republican House bill will be a major setback
Solar panel companies say that a Republican budget bill passed by Congress this week will deal a major blow to their industry. It will eliminate a generous homeowner subsidy that has boosted the growth of the industry. Industry players say the bill would eliminate a 30% federal tax credit for taxpayers installing rooftop solar systems. This would stifle an industry which has grown by ten times in the past decade and now employs over 100,000 workers. Charlie Hadlow is the president of EnergySage - an online solar marketplace. He said, "It's a huge setback." I have solar installers within our vast network who are passing on the contact details of bankruptcy attorneys. This is not alarmist. It's actually happening. Solar Energy Industries Association, a trade group, says that many of the largest residential solar markets are located in states which voted for Donald Trump. These include Texas, Florida, and Arizona. The House Ways and Means Committee, which is part of the Republican Party, voted to let the 25D Tax Credit expire nine years sooner than originally planned. This was done as part of the Republican's effort to reverse the subsidies provided by the Inflation Reduction Act, former president Joe Biden’s signature climate legislation. A Republican spokesperson on the committee didn't immediately respond to an inquiry for comment. There are still several obstacles to overcome before the bill can be passed by Congress. The White House didn't immediately respond to our request for comment. Trump wants to undo the federal regulations and programs that Biden introduced aimed at expanding renewable energy and fighting climate change. EnergySage estimates that roof-mounted systems would cost about $8,000 to $9,000 more without the 25D tax credit. Subsidies are crucial for small installers, whose clients pay in cash or borrow money and claim the credit when filing their tax returns. The House bill will extend the tax credit until 2032, but it will be phased out by 2029. This market is dominated largely by Sunrun and other large players. You want to increase the burden of taxation on regular Joe? Jack Ramsey, CEO at Altsys Solar, Tulare in California, said: "It doesn't feel fair." Ramsey expects to reduce his nine-person team down to four or five if credit is removed. By 2024, U.S. residential solar power will reach 36 gigawatts, up from just 3 GW back in 2014. This is equivalent to a quarter of nuclear power's capacity. According to the Interstate Renewable Energy Council, rooftop solar is responsible for more than one-third of all solar industry jobs. Rob Kaercher is the CEO of Absolute solar in Lansing Michigan. He has 24 employees, and wants to add more. But he won't if credit disappears. Kaercher said to reporters, "I urge the credits to remain in place because it will help local businesses like ours continue to grow and hire." Many in the industry were surprised by the decision to eliminate credit. Thomas Clark, owner of Northstone Solar, Whitefish, Montana met with the staff from his state’s Congressional delegation earlier this year in Washington and felt that the credit would be safe. Clark stated that "this happening so soon after these meetings really hurts a constituent." (Reporting and editing by Nichola groom)
-
A lawmaker calls for an explanation of the Trump administration's decision to remove intelligence analysts
The top Democrat of the U.S. House Intelligence Committee on Wednesday asked Director of National Intelligence Tulsi Gabriel to provide proof of her alleged political bias, which led to her ousting the heads of intelligence community's most analytical body. Gabbard removed the two after the National Intelligence Council issued an assessment that contradicted the legal argument used to deport members of the Venezuelan criminal gang Tren de Aragua by U.S. president Donald Trump. The Trump administration used the claim that Tren de Aragua coordinates its U.S. actions with the Venezuelan Government of President Nicolas Maduro in order to invoke the 1789 Alien Enemies Act to justify deportations to a maximum security prison in El Salvador of alleged gangs members. A spokesperson for the ODNI confirmed that Michael Collins was fired as acting NIC Chairman and Maria Langan-Riekhof as his vice chairman. She added that Gabbard had "dismissed them because they could not provide unbiased information." The spokesperson did not provide any examples of alleged biased intelligence that led to the dismissal of Michael Collins and Maria Langan-Riekhof. Fox News was the first to report their dismissal. Two sources, who spoke on the condition of anonymity, said that Gabbard had sent the operatives back to their respective intelligence agencies. A source told us that she has not yet made a decision about whether to fire them or bring them back to NIC. Jim Himes is the top Democrat of the House Intelligence Committee. He wrote to Gabbard to say that she failed to inform congressional intelligence panels about her decision to oust Collins, Langan-Riekhof, and others. Himes wrote: "According anonymous sources quoted in the Fox News article, you terminated two individuals because of their supposed "political bias"." This is a serious accusation against career intelligence officers, and as such requires evidence. He asked Gabbard to provide the committee with proof of this by May 21, 2019. The NIC assessment, released through a Freedom of Information Act Request last week, contradicted claims made by the administration about the gang’s connections with Venezuela’s government. The assessment concluded that "while Venezuela's permissive climate allows TDA to function, the Maduro government probably doesn't have a cooperation policy with TDA or isn’t directing TDA operations and movement in the United States," Mark Warner, top Democrat of the Senate Intelligence Committee, accused Gabbard, in a press release, of "purging intelligence officials because the Trump administration finds the report politically inconvenient." One source stated that, in a similar matter, the CIA "pushed back hard" on an attempt by Gabbard, to take over the drafting the top-secret Presidential Daily Brief. This is the daily compilation of the most classified U.S. Intelligence prepared for the President. A third source who is familiar with the matter cited an internal CIA memorandum that stated that a team of agency officials are working with Gabbard on moving the office responsible for preparing the brief, and that a timeline was still being worked out. The ODNI spokesperson denied that Gabbard tried to take over the Presidential Daily Brief and instead moved it physically from the CIA into the ODNI, "in a streamlined effort and a continuation of workforce." (Reporting and editing by Jonathan Landay, Erin Banco, Caitlin, Michael Perry, and Deepa Babington;
US manufacturing output drops in April due to weak auto production
The U.S. manufacturing sector is expected to struggle in the second quarter due to tariffs.
The Federal Reserve announced on Thursday that factory output fell by 0.4% in April after a 0.4% increase, which was upwardly revised for March. The Federal Reserve said on Thursday that economists polled had predicted production would fall 0.2% following a 0.3% increase previously reported.
In April, the production at factories grew by 1.2% compared to last year. The President Donald Trump's changing tariffs policy is a major headwind for manufacturing, which makes up 10.2% of the US economy and heavily relies on imported raw materials.
The Trump administration reduced duties on Chinese imports to 30% last weekend from 145%. However, a tariff of 10% on almost all imports as well as a tax of 25% on motor vehicles and parts as well as steel and aluminum remained.
Trump has defended tariffs, saying they are necessary to revive the U.S. industry base. However, economists claim it's impossible to bring back factories that have moved overseas, citing the high costs of production and labor.
After a long slump caused by higher interest rates, manufacturing grew 4.8% in the first three months.
The auto industry's output of vehicles and parts dropped by 1.9% in December after rising for the previous two months, likely because automakers were trying to keep up with tariffs. The motor vehicle industry has warned that tariffs will significantly reduce profits in 2018.
Durable manufacturing production decreased by 0.2%. The nondurable manufacturing sector saw a 0.6% decline in production.
After posting impressive gains in the two previous months, mining output fell by 0.3%. Utilities production recovered 3.3%. This followed two consecutive monthly declines.
The overall industrial production remained unchanged in April after declining by 0.3% in the previous month. In April, it increased by 1.5% compared to the same period last year.
Capacity Utilization for the Industrial Sector, a measure on how well firms use their resources, dropped to 77.7% in March from 77.8%. This is 1.9 points below the average for 1972-2024. The manufacturing sector's operating rate dropped by four-tenths a percentage point, to 76.8%. This is 1.4 points below the long-term average. Lucia Mutikani, reporting; Paul Simao, editing
(source: Reuters)