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Senate Republicans try to eliminate $7,500 electric vehicle tax credit
The U.S. Senate Republicans proposed a tax-and-budget bill on Monday that would eliminate the $7,500 credit on the sale of new electric vehicles 180 days after it is signed into law. It would also immediately terminate the credit for leased EVs manufactured outside North America. The Republicans have targeted EVs in a variety of ways, reversing former president Joe Biden's policies that encouraged the use of electric vehicles and renewable energies to combat climate change and reduce emission. The Republican Senate Finance Committee's proposal would also eliminate a $4,000 tax credit for EVs on used vehicles 90 days after it was approved. Senate Republicans propose that, as of June 16, the credit of $7,500 for leased cars, which would not also qualify for the credit, will be discontinued. The current leased vehicles are eligible for the credit without restrictions on their content or where they were built. If they meet the same requirements, leased vehicles can still qualify for the tax credit 180 days after the passage of the bill. North American battery assembly and Vehicles purchased must meet critical mineral content requirements. The House of Representatives' version would extend the $7,500 tax credit for new-EVs through 2025 and 2026, respectively, if automakers haven't sold 200,000 electric vehicles before the program is terminated. The Republican Senate proposal would exempt auto loan interest from tax for new cars manufactured in the U.S. until 2028. However, it will phase out for individuals making over $100,000 per year. The House bill would impose an annual fee of $250 for EVs to cover road repair costs, and $100 for hybrids. The House bill will phase out EV production tax credits by 2028. Last week, President Donald Trump signed a congressional resolution to block California's historic plan to stop selling gasoline-only cars by 2035. This plan has been adopted in 11 other states that represent a third the U.S. automobile market. (Reporting and editing by Leslie Adler, David Gregorio, and David Shepardson)
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Carney and Trump aim to reach a Canada-US agreement within 30 days
Mark Carney, the Canadian Prime Minister, announced on Monday that he and U.S. president Donald Trump had agreed to try to conclude a new security and economic deal between their two countries within 30 days. The announcement was made only a few short hours after Canadian officials had said that both sides still needed to work hard before they could sign the agreement. Carney, who was elected in April on the promise that he would fight Trump's tariffs and is now pushing for a "new economic and security relationship" with the United States. Trump had reaffirmed his love of tariffs during a previous meeting between the two men on the sidelines a G7 Summit in Alberta. In a press release, Carney's Office said that "Prime Minister Carney... and President Trump... exchanged updates on key issues raised during negotiations on a renewed economic and security relationship" between Canada and the U.S. "To this end, the leaders have agreed to continue negotiations in order to reach a deal in the next 30 days." A Carney spokesperson confirmed that the language of the statement meant both sides wanted to reach an agreement in the next thirty days. Carney's Office did not respond immediately when asked if the statement meant Ottawa accepted the idea of some U.S. Tariffs remaining. Trump had said that a new agreement with Canada is possible, but that tariffs must play a part. The Canadian government does not agree. "I have a concept for a tariff." Mark has a completely different idea... We're going see if it is possible to get to the bottom," Trump said. "I'm a tariff person." Canada, which is the United States' top supplier of aluminum and steel, will face tariffs on both metals, as well as auto exports, imposed by Trump. Carney stated last week that the two countries were engaged in intensive negotiations regarding the tariffs, and that Canada would prepare retaliatory measures if the negotiations failed. The optimism that a deal would be reached quickly has waned in the last 10 days. Canadian officials have privately stated that the United States does not appear to be in a hurry. "We're still in the middle of this discussion. We aren't at the end." Kirsten Hillman is Canada's ambassador in Washington. She said that Canada should not have tariffs on exports to the United States. She told reporters that they would continue to speak until the best possible deal was reached for Canada. (Reporting and editing by Rod Nickel, Stephen Coates, and David Ljunggren)
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Ember report: EU gas demand to drop by 7% in 2030
A report from the think-tank Ember on Tuesday showed that gas demand in Europe is expected to decline by 7% by 2030, as renewable energy and electricification increases. By the Numbers Ember analysed the national energy plans of EU member states and found that gas demand will fall by 7%, from 326 billions cubic metres (bcm), in 2023, to 302 bcm, in 2030. Gas demand is already down 19% from 404 billion cubic metres in 2019 to 326 bcm by 2023. Why it's important The EU's goal to increase the capacity of liquefied gas imports by 54% in 2030, as part plans to phase-out Russian pipeline gas supplies, is at odds with a long-term drop in gas demand. The report warned that this could lead to an oversupply of gas, with new investments in infrastructure at risk of being stranded. CONTEXT EU countries are aiming to double their wind and solar power over the next 5 years, so that renewables can generate 66% all EU electricity in 2030. Electricity is expected to increase from 23% to 30% of the EU's final energy demand by 2030. KEY QUOTE "An electrified EU economy is the direction that is unmistakably heading. Any rush to overbuild on gas infrastructure will result in expensive stranded assets." Tomos Harrison is an Ember electricity transition analyst. Reporting by Nina Chestney, Editing by Chizu nomiyama
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Ottawa pushes Trump back on his claim that tariffs should be included in any Canada-related deal
U.S. president Donald Trump said Monday that a new deal could be reached with Canada, but he stressed the importance of tariffs. The Canadian government is strongly opposed to this position. Mark Carney, the Canadian Prime Minister who won the election in April on the promise to combat Trump's tariffs is now pushing for a "new economic and security relationship" with the United States. "I have an idea about tariffs." Mark has a completely different idea... We'll see if it can be resolved," Trump told Carney when they met on the sidelines a G7 Summit in Alberta. "I'm a tariff person." When asked if a deal could be reached within a few weeks, Trump responded: "Yes. It's possible." Canada, which is the United States' top supplier of aluminum and steel, will face tariffs on both metals, as well as auto exports, imposed by Trump. Carney stated last week that the two countries were engaged in intensive negotiations regarding the tariffs, and that Canada would prepare retaliatory measures if the negotiations failed. Over the last 10 days, the optimism that a deal would be reached quickly has waned. Canadian officials have privately stated that the United States does not appear to be in a hurry. "We're still in the middle of this discussion. We aren't at the end." Kirsten Hillman said that Canada should not impose tariffs on exports to the United States. She told reporters that they would continue to speak until the best possible deal was reached for Canada. Reporting by David Ljunggren Editing Rod Nickel
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Lawyers say that the US golden share of U.S. Steel may scare away investors.
National security lawyers warned on Monday that the unusual move made by the Trump Administration to grant itself a golden stake in U.S. Steel, as part of an agreement to approve Nippon Steel’s takeover of this well-known U.S. firm, could scare away foreign investors. Commerce Secretary Howard Lutnick said on Saturday that "President Trump secured a perpetual Golden Share in Nippon Steel’s acquisition of U.S. Steel." He listed a number of corporate decisions over which the Trump administration will now have veto authority. Investors bet that the Japanese company's $14.9 billion bid to buy the struggling U.S. Steel would reach its conclusion soon. Joshua Gruenspecht is a Wilson Sonsini national security attorney. He says that the Trump administration made an unusual decision by including the golden share as part of the national security agreement. This would have caused foreign investors to be wary. It leads to the question, "Am I going get what I purchased? "Do I have control over this asset?" He said. Nippon Steel declined comment. U.S. Steel, the White House, Commerce and the Treasury Department, who lead the Committee on Foreign Investment in the U.S., which examines foreign investments to determine if they pose a national security risk, did not respond immediately to requests for comments. 'RISKY' AND 'UNPRECEDENTED" On Friday, the Trump administration approved the merger via an executive agreement and an order to ease national security concerns. This culminated a turbulent 18-month process. Questions had been raised about the golden stake that President Donald Trump suggested would give the American people 51% of the struggling U.S. company as part the acquisition. Lutnick wrote in his post on Saturday that the share would stop companies from delaying or canceling investments worth $14 billion, moving production or jobs overseas, or shutting down or idleing plants before a certain date, without the consent of the president. The government also has a veto on a possible relocation of U.S. Steel headquarters from Pittsburgh, Pennsylvania. This could include a transfer or job overseas. A U.S. official confirmed a New York Times report that this power is granted by a single class of preferred stock called Class G, which stands for "gold." The board member is directly appointed by a president. According to lawyers consulted by, it is not unusual for CFIUS in an NSA to require that certain board members are approved by the committee. It was a novel approach to have a board member with a fiduciary responsibility to the president. Jim Secreto said that a golden share approach was both risky and unheard of. He added that the United States might protest if Beijing demanded something similar in order to approve an American company's investment into a Chinese firm. "Trump’s dealmaking creates uncertainty for investors around the world and sets a precedent which could complicate future deals across borders." Before Trump became involved, these companies offered the U.S. government significant authority. Nippon Steel, in a term sheet for a national-security agreement that was submitted to CFIUS and obtained by the, pledged that the majority of U.S. Steel board members will be American and that CFIUS would approve three of these "independent U.S. directors". The term sheet said that "U.S. Steel can reduce production capacity if and only when it is approved by the majority of Independent U.S. directors." It also stated that the core U.S. management will be U.S. Citizens. Reporting by Alexandra Alper, Steve Holland and Rod Nickel
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Central banks and global markets focus on Iran ceasefire report.
Investors were encouraged by reports that Iran is seeking to end hostilities against Israel and they remained confident about their predictions for the busy week of central banks meetings. The Wall Street Journal reported that Iran is seeking a ceasefire following an attack by Israel on Friday, which sparked fears of a wider conflict and sent oil prices soaring. Stocks also fell as a result. Sources have confirmed that Iran asked regional allies press Donald Trump, the U.S. president, to convince Israel to accept a ceasefire. Geopolitics loomed large, and there were signs of cracks among the Group of Seven leaders who are meeting in Canada. Officials made contradictory statements on whether Trump would sign the draft statement that called for a de-escalation in the Middle East conflict. Peter Cardillo is the Chief Market Economist of Spartan Capital Securities, a New York-based brokerage. The market has rallied on this, I believe. After a wild session on Friday, Brent crude oil futures settled down at $73.23 a barrel, a loss of $1.00 or 1.35 %. The Dow Jones Industrial Average rose 0.75% in afternoon trading. This was just a little bit below the morning highs. The S&P 500 rose 0.90%, while the Nasdaq Composite climbed 1.45%. The 10-year Treasury note yield rose from 4.424% to 4.452% late Friday, after initially falling due to reports about Iran's outreach towards Israel. MSCI's global stock index rose 1.09% after the U.S. opening and continued to rise on the day, closing at 0.85%. The STOXX 600 index in Europe was boosted earlier in the day by a recovery in travel stocks. Gulf stocks were also up. Data showed that retail sales and industrial production were in line with expectations. FED MEETING IN FOCUS - MORE DATA TO COME Emily Roland, Manulife John Hancock Investments' co-chief investment analyst, says that a prolonged increase in oil prices may contribute to inflation. However, the recent movements are unlikely to have a significant impact on the Federal Reserve meeting scheduled for Wednesday. Roland explained that the Fed relies on data and it can take time for oil prices to impact inflation figures (whether they are higher or lower). The Fed is likely to keep the markets on hold with no change in the Fed's view that there will be between 2 and 3 rate cuts of 0.25 percent by the end the year. The bond market still prices in two rate cuts for the year. We will see if we get a different result this week. The U.S. Retail Sales data will be released on Tuesday. It may show that auto sales are down, which could drag the headline figure down, even though core sales have increased. The weekly unemployment claims are released on Wednesday due to a market holiday on Thursday. This week, the central banks of Norway and Sweden will also be meeting. The latter is expected to lower rates. It is expected that the Swiss National Bank will meet on Thursday. The rate cut is likely to be at least one quarter point, if not more. There's a chance the rate could even go down to negative due to the strength of Swiss Franc. Bank of Japan policy meeting is scheduled for Tuesday. Rates are expected to remain at 0.5%. However, the possibility of tightening rates later in the year remains. It is also possible that it will slow down the sale of its government bonds in the next fiscal year. Gold fell 1.24%, to $3389.71 per ounce.
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Texas startup sells fungi that eat plastic to reduce landfill waste
Could baby poop, fungi and landfill waste work together? This is the concept behind a new product from an Austin-based startup, which sells disposable diapers with fungi that are designed to break down plastic. Hiro Technologies MycoDigestible Diapers come with a packet containing fungi that should be placed in the diaper before throwing it away. The fungi will begin biodegrading after a few weeks when they are exposed to moisture in feces and urine. Disposable diapers are a significant contributor to landfill waste. According to the Environmental Protection Agency, approximately 4 million tons worth of diapers was disposed in the United States last year without any significant recycling or composting. It takes hundreds of years for diapers to decompose naturally. The very first disposable diaper is still sitting in a landfill. Hiro Technologies used fungi to combat this problem. These organisms, which include molds, mildew, and yeasts, derive their nutrients from organic matter. Researchers from Yale University discovered in Ecuador in 2011 a fungus that feeds on polyurethane - a polymer commonly found in plastic products. The researchers figured that the fungus Pestalotiopsis could survive in landfills, which are environments without oxygen. Tero Isokauppila is the co-founder of Hiro Technologies, a Finnish entrepreneur and founder of Four Sigmatic. He said that more than 100 species are now known to be able to degrade plastics. "Many moons ago, fungi developed to break down trees. Especially this hard-to -break-down compound called lignin. "Isokauppila explained that the carbon backbone in plastics is similar to its carbon backbone. Hiro Technologies has three sealed jars that show the decomposition stages of a diaper treated over time. Isokauppila says that after nine months the product looks like black soil, which is "just digested and basically earth". The company said it needed to do more research in order to determine how the product would decompose under real-world conditions and in different climates. It hopes to have data available to make "consumer facing claims" by next summer. The company also plans to test plastic-eating mushrooms on adult diapers and feminine care products. For the moment, "diaper packages" are being sold online for $35 per week. Miki Agrawal said that the MycoDigestibleDiapers have been generating excitement among consumers and investors ever since they launched about a year ago. She declined to provide details. Agrawal stated that the company chose to focus on diapers because they are the most common household plastic waste. Agrawal stated that "there is a detrimental lasting effect which we have not really thought about or considered." "Because, when you throw away something, no one asks themselves, "Where is away?"
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Barrick Mining's gold mine placed under state control Mali
A court in Mali on Monday placed the Loulo-Gounkoto Gold Complex under state control, a significant escalation in a dispute about taxes and ownership. The presiding judge announced that former Malian Health Minister Soumana Maadji will be appointed as the provisional administrator. This position is for a period of six months. Barrick has announced that it will appeal this decision. Barrick subsidiaries' gold stock was seized by the Malian government after it blocked gold exports. Barrick said in a press release that it believed these actions, which resulted in the temporary suspension its operations, weren't justified. Issaka K. Keita, a Barrick lawyer, said that justice was not served. Since January, the Loulo-Gounkoto Complex, which represented 14% of company output, was suspended amid a dispute between the company, the government, and over ownership and taxes. In May, the government, as a shareholder of the complex, asked the Bamako Commercial Court for an administrator to be appointed, signaling its desire to reopen it amid record high global gold prices. Barrick shares fell 0.7% on Monday morning in Toronto. The mines ministry of Mali declined to comment. Gold prices are on the rise and if the mine is reopened it could generate revenue of at least $1 billion in the next year. Barrick shares are lagging behind those of its peers, but the standoff risks restraining potential investors from Mali. Since 2023, the two sides have been negotiating over the implementation of the new mining code which increases taxes and gives the Government a larger share in the mines. They are trying their best to come up with a new contract that is in line the new law. According to sources familiar with the situation, Barrick's Mali mining license is due to expire on February 20, 2026. Barrick Gold, the company that used to operate this complex, stopped operations in mid-January, after the authorities confiscated three metric tonnes of its gold stock. The government had banned its exports since November 2024. Barrick has removed the complex's production forecast for 2025. Negotiations between the two parties continue outside of court. Mali has allowed Barrick to repatriate 20 percent of its earnings to an international bank account. This was an exception not granted to other foreign miner, according to two sources familiar with the situation.
Leaders of the G7 strive for unity in face of escalating conflicts in Ukraine and Middle East
Leaders of the Group of Seven nations started their annual meetings on Monday. War in Ukraine and the Middle East have added to the global economic uncertainty. The host Canada is trying to avoid a confrontation with U.S. president Donald Trump.
G7 leaders, including the European Union and representatives from Britain, Canada France Germany Italy Japan, the United States, and Canada are meeting in Kananaskis, a resort in the Canadian Rockies, until Tuesday.
The summit in Canada, with the escalating conflict between Israel and Iran, is seen as an important moment to restore some unity among democratic powers.
Canada has given up on any attempt to adopt a comprehensive communiqué to avoid a repeat from a summit held in Quebec last year, where Trump had instructed the U.S. delegation to withdraw their approval of the final document after they left.
Leaders prepared a number of draft documents, which were seen by us. These included one that called for the de-escalation in the Israel-Iran Conflict and others on migration, artificial Intelligence and critical mineral supply chain. According to sources familiar with the documents, none of the drafts have been approved by US officials.
"I think there is a consensus on de-escalation." Keir starmer, British Prime Minister told reporters that it was important to get everyone on the same page and be clear as to how this could be achieved.
The first five-months of Trump's second tenure have thrown Trump's foreign policy into disarray, raised concerns about his close ties with Russia, and led to tariffs against U.S. allies.
The focus of Monday's talks will be the economy, trade agreements, and China.
The temporary rise in oil prices that has occurred since Israel began its strikes against Iran on 12 June complicates efforts to reach an agreement on lowering the G7 price limit on Russian oil, even if Trump decides to opt out. On Monday, oil prices dropped on reports that Iran was seeking a ceasefire.
Diplomatic sources say they are hoping to encourage restraint, and a return of diplomacy.
"We are one." "Nobody wants Iran to get a nuke and everyone wants the discussions and negotiations restarted," France's president Emmanuel Macron said to reporters in Greenland, Sunday before he left for Canada.
Washington has the ability to restart talks with Israel, he said.
Trump said that many meetings and calls were being held to broker peace.
RUSSIAN ELEPHANT INSIDE THE ROOM
Trump, highlighting the unease of some Washington's allies on Saturday, spoke with Russian President Vladimir Putin. He suggested that Putin could play a mediatory role between Israel and Iran.
Macron rejected the idea. He argued that Moscow couldn't be a negotiator, because it started an illegal conflict against Ukraine.
A European diplomat stated that Trump's suggestion demonstrated the fact that the U.S. was still thinking about Russia, even though it had been kicked out in 2014 for annexing Crimea.
"In the U.S.'s eyes, there is no condemnation of Ukraine; no peace with Russia; and even now credit for its role in mediating Iran. The diplomat stated that this G7 will be tough for Europeans.
The summit will be held on Tuesday. Both the NATO Secretary General Mark Rutte and Ukraine's president Volodymyr Zelenskiy will attend. The European officials said that they were hoping to use this meeting and the NATO summit next week to convince Trump to take a more aggressive stance against Putin.
Macron stated that the G7's goal should be to bring us back together, to achieve a ceasefire in Ukraine, which would lead to a robust, lasting peace. It is also important to see if President Trump will impose much stronger sanctions against Russia. (Suzanne Plunket contributed additional reporting; Caroline Stauffer, Paul Simao, and Rod Nickel edited the article).
(source: Reuters)