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Noem calls for the elimination of FEMA 'as currently constituted' as it aids flood victims in Texas
U.S. Homeland Security Secretary Kristi NOEM called for the Federal Emergency Management Agency's elimination in its current format on Wednesday, while the agency was sending specialists and supplies to Texas as part of the response to the devastating floods. Noem's remarks were a restatement on her thoughts about FEMA's Future but noteworthy given FEMA’s critical role currently in central Texas. Flash floods on 4th July At least 119 people have been killed, and scores more are still missing. Noem, who spoke at a meeting with a government review panel looking for ways to reform FEMA noted that the agency provided resources including personnel to assist state and local officials leading the response in Texas. Noem also used the occasion to criticize FEMA's past failures. She claimed that the agency is too slow and bureaucratic, and it ties state and local officials up. She said that federal emergency management should be led by the states and local governments, not as it has been for decades. It has been slow at the federal level to respond. Even the delivery of resources to Americans who are in crisis has been delayed. This is why it's time to restructure this agency and make it more responsive. FEMA's defenders claim that President Donald Trump, and his aides, have tried to politicize an agency vital for helping states prepare for disasters such as hurricanes and flooding and clean up afterward. Michael Coen, FEMA chief-of-staff for former presidents Barack Obama, Joe Biden and Hillary Clinton, called Noem’s remarks “disappointing” and pointed out that people affected by the floods in Texas are "still searching for their loved ones, with the help of the federal government." FEMA's fate is not clear The Texas floods were the first major disaster to kill many people since Trump assumed office in January, vowing to abolish or gut FEMA. They served as a stark reminder to how much states rely on FEMA during disasters. Trump and Noem are yet to specify how FEMA would be remade, and how its operation would differ from the way it currently operates. Local officials in Kerr County have been questioned about their role, especially since the majority of victims were from that county. Do more Residents should be warned as floodwaters rise. FEMA's daily operation briefing states that the agency has sent search and rescue teams to Kerr County from five different states, as well as experts and supplies, to help the state's emergency headquarters located in Austin. The Army Corps of Engineers was also activated. Trump announced last month that he will "phase out" FEMA following the current hurricane season which runs through November. He said that states would receive less federal assistance for disasters with the White House controlling funding distribution. FEMA continues to play a role in the funding of state emergency capabilities. FEMA provided Texas with nearly $20 million in the fiscal year prior to pay for emergency management operations that are now the frontline of flood response. Trump has often said that he believes the states should be responsible for disaster response, but he was more reserved in his remarks following the Texas flooding. Trump said that he would "talk about it later" when asked by a reporter if he planned to phase out FEMA. Karoline Leavitt, White House Press Secretary, was equally guarded on Monday. She told reporters that the federal government's disaster response is a "policy conversation that will continue." Coen stated that he found Trump and Leavitt encouraging. He said that both seemed to be aware of the significance of the moment, and hoped that the Texas disaster could serve as an "opportunity to look at things in a different way." Reporting by Nathan Layne, Maria Tsvetkova and Ted Hesson in New York and Courtney Rozen and Ross Colvin in Washington. Editing by David Gregorio and Ross Colvin.
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Stocks rise as Nvidia reaches $4-trillion valuation, euro inch lower
The major stock indexes rose Wednesday, as Nvidia briefly reached a valuation of $4 trillion. Meanwhile, the euro dipped, as the Trump administration was getting closer to an agreement with its largest trading partner, the European Union. The U.S. president Donald Trump has issued final tariff notifications to seven minor trading partner. Bitcoin reached a new high of $112,000 on late Wednesday. This was largely due to increased risk appetite and continued institutional demand. The U.S. stock market rose after the minutes of the Federal Reserve meeting on June 17-18 revealed that only "a few" officials said they believed interest rates could drop as early as this month. The majority of policymakers are concerned about the inflationary pressure that they expect will come from Trump's use import taxes to reshape international trade. Trump expanded his trade war on Tuesday, announcing that he would impose an import tariff of 50% on copper. This move caused the copper price in the United States to soar and stock prices in America to fall. He said that he will soon introduce levies up to 200% on pharmaceuticals. On Wednesday, U.S. Copper Futures increased their premium over the London benchmark. After Trump warned 14 countries on Monday that they would face a sharply increased tariffs by a new deadline, August 1, more developments in the trade conflict are expected. Oliver Pursche is a senior vice president with Wealthspire Advisors, based in Westport, Connecticut. He said that investors aren't paying attention to the noise because they don't believe that tariffs will cause a lot of inflationary pressure or economic disorder. This hasn't been the case. Nvidia's shares, which are a supporter of the stock, closed the session up 1.8%. The company briefly exceeded a $4 trillion market cap, becoming the first company to do so in the history of the world, before closing at $3.9 billion. "Whenever you have an event like this in the market - which is a historic event - it's generally good for the overall market. This shows that investors have their eyes on the future. Peter Cardillo is the chief market economist of Spartan Capital Securities, New York. The Dow Jones Industrial Average gained 217.54 points or 0.49% to 44,458.30. The S&P 500 rose 37.74 points or 0.61% to 6,263.26. And the Nasdaq Composite gained 192.87 point, or 0.9%, at 20,611.32. The MSCI index of global stocks rose by 4.99 points or 0.54% to 924.30. The pan-European STOXX 600 ended up with a 0.78% gain. EU sources said that the euro fell 0.09%, to $1.171. Investors weighed up the possibility that the EU wouldn't receive a tariff notice and would be able to secure exemptions for the U.S. base rate of 10%. The dollar index (which measures the greenback versus six major counterparts) is still down over 6% from the day Trump announced his reciprocal tariffs on "Liberation Day", April 2. The New Zealand dollar rose 0.03% to $0.59, after the central bank of the country left its benchmark interest rate unchanged as expected. It also noted that inflation risks were near-term. U.S. Treasury Yields dropped after Treasury saw a strong demand for $39 billion in 10-year notes. This suggests that fears about investors leaving the market are unfounded. The yield on U.S. benchmark 10-year notes fell 7.7 basis points in the last day to 4.34%. Investors weighed strong U.S. data on gasoline demand and attacks against shipping in the Red Sea to determine oil prices. Brent crude futures gained 4 cents or 0.06% to settle at $70.19 per barrel. U.S. West Texas Intermediate Crude gained 5 cents or 0.07% to settle at $68,38.
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Wall Street surges as Fed minutes focus on rate cuts and Nvidia reaches $4 trillion milestone
The Nasdaq and Wall Street indexes both closed higher on Tuesday after Federal Reserve minutes raised hopes that the inflationary pressures caused by President Donald Trump’s tariffs wouldn't derail rate cuts in 2018. Nvidia briefly hit a valuation of $4 trillion. Minutes of the Fed's mid-June meetings showed that many Fed officials expect interest rate cuts to occur later this year. They also said that Trump's tariffs on imports would only have a "temporary" or modest impact on prices. There was, however, little support for a cut in rates at the end-of-July meeting. Nvidia closed higher on Wednesday after becoming the first company in the world to reach a $4 trillion valuation. This solidified its position as Wall Street's favorite stock to take advantage of the surge in demand for artificial-intelligence technologies. "Fed officials indicated that they believed inflation would be higher in the future. Many or most officials also said that they expected lower interest rates this year. "Those two things do not match," said Chris Brigati. Chief investment officer of SWBC, a San Antonio-based investment firm. "Perhaps the government is starting to pay more attention to what's happening on the labor market." Other megacaps, such as Microsoft Corp. and Amazon.com, also boosted the market. There's definitely a bias towards megacaps. Kevin Gordon, senior Investment Strategist at Charles Schwab said that it is a flight to security but not the traditional safety trade. From a trading perspective, it's hard to get much clarity. Preliminary data shows that the S&P 500 rose 36.36 points or 0.58% to 6,261.88 while the Nasdaq Composite grew 189.34 or 0.93% to 20,607.23. The Dow Jones Industrial Average increased 214.23 or 0.48% to 44,450.53. Analysts note that while Wall Street indexes fell on Monday due to trade fears, they have since stabilized. Investors have grown accustomed to Trump's pattern for saber rattling about tariffs. The deadline for the latest tariffs has been pushed back to August 1. Many are betting on negotiations to defuse the current trade war. Trump sent letters on Wednesday to seven countries, requesting tariffs of 30% for Algeria, Iraq and Libya, 25% for Brunei, Moldova and the Philippines, and 20% for the Philippines. The European Union said that it may be able to reach a basic trade agreement with the U.S. within the next few days. Trump had intensified his trade offensive on Tuesday with an announcement of a tariff of 50% on copper, and a promise to impose long-threatened duties on semiconductors and drugs. Trump announced on Monday that he would impose a 50% tariff on copper and levy levies against semiconductors and pharmaceuticals. Hit 14 Trading Partners With a new wave of tariff warnings including Japan and South Korea. The market has become a bit desensitized by tariffs. SWBC's Brigati said that the market is saying we might be able to get through tariffs because of three months' positive growth. Investors will be looking at Thursday's first jobless claims to get the pulse of the labor market after last week's record closings for the S&P 500 & Nasdaq – buoyed by a surprisingly strong jobs report. Bloomberg reported on AES Corp's exploration of options, which included a possible sale. Boeing shares rose as Susquehanna increased its price target following the planemaker's Tuesday announcement that its aircraft deliveries in June were higher than expected You can also increase your chances by increasing the number of people who you are able to contact. 27% annually. UnitedHealth Group's shares fell after the Wall Street Journal reported the U.S. Department of Justice is investigating how doctors and nurses were used to collect diagnoses for Medicare payments.
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Trump's White House meeting with African Leaders sells the shift from "aid to trade"
On Wednesday, President Donald Trump said to leaders of five African countries that he would shift the U.S. strategy from aid to trading and that America is a more reliable partner for Africa than China. Trump, who shut down the U.S. Agency for International Development (USAID) and cut funding for programs to help Africans hosted leaders from Gabon and Guinea-Bissau as well as Liberia and Mauritania for a discussion on business opportunities in their respective countries. Trump stated that his administration is committed to strengthening relationships in Africa. He hopes to visit Africa at some point. He said, at the beginning of a White House gathering: "We are shifting from aid towards trade." There is a great deal of economic potential in Africa. This will, in many ways, be more sustainable, effective, and beneficial over the long term than anything we could be doing together. African leaders praised the U.S. President for brokering international peace deals and expressed their support for him receiving the Nobel Prize. This shows that, like other foreign leaders they have learned to flatter the former New York Businessman. Liberian president Joseph Boakai stated that he supports Trump's efforts "to make America great again", a reference Trump's slogan. He also encouraged U.S. investments in his country. Trump complimented Boakai on his English and asked where he learned it. Liberia is a country founded by former slaves of America, and English is the official language. Boakai claimed to have learned English there. "We are rich countries. "We are not poor countries. "We need partners who will support us in developing these resources," said Brice Cltaire Oligui Nguema. "You are invited to come and make investments. You might be replaced by another country. This week's Mini-Summit is the latest attempt by successive U.S. Administrations to counter perceptions that the U.S. has neglected a continent on which China has made increasing economic inroads. Trump said, "We treat Africa better than China and anyone else anywhere else." COMPLICATED HISTORIA Melania Trump, Trump's wife, visited Africa during Trump's first term. In 2018, some African politicians branded Trump as a racist after it was reported that he had called immigrants from Africa and Haiti "shithole countries". Trump falsely accused South African President Cyril Ramaphosa of genocide against whites and land seizure during a heated White House meeting in May. The meeting on Wednesday was not as exciting. Trump joked that after receiving repeated compliments from leaders, he "could do this all day." Africa experts await Trump's announcement of dates for a larger summit with African leaders. This could be in September, around the time for the United Nations General Assembly. The U.S. International Development Finance Corporation announced earlier that day that it would provide funding for project development at the Banio Potash Mine, Mayumba in Gabon. This will help Gabon to reduce its dependency on imported goods. Conor Coleman, DFC's head of investments, said that DFC's efforts benefit not only the countries and communities in which they invest, but also U.S. interests by promoting a secure and prosperous world economy, opening new markets and strengthening trade relations. Trump's government has continued to send letters informing trading partners that higher tariff rates will take effect on August 1. It also launched a new front of his trade war with members of the BRICS Group of developing countries. The Obama administration also cut large swaths from U.S. Foreign Aid for Africa in an effort to reduce spending that it deems wasteful, and to focus on a "America First" agenda. The Lancet Medical Journal published a study last week that showed these cuts could lead to an additional 14 million deaths by 2030. The U.S. government has stated that it will prioritize trade and investments over charitable assistance, and focus on increasing opportunities for U.S. companies. The five countries that were invited all have a wealth of natural resources including gold, diamonds and lithium, as well as manganese. China has made significant investments across the continent, particularly in resource extraction. African Union officials are questioning how Africa can deepen its trade relations with the U.S., given what they call "abusive tariff proposals" and visa restrictions that primarily target travelers from Africa. Ambassador Troy Fitrell has denied allegations that the United States engages in unfair trade practices. Reporting by Nandita BOSE, Andrea Shalal and Jeff Mason, with additional reporting by Christian Martinez, Matt Spetalnick and Maiye Keidan. Editing by Deepa Babington, Don Durfee and Deepa Babington.
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Stocks rise as Nvidia reaches $4 trillion valuation; euro edge lower
The major stock indexes grew on Wednesday, with Nvidia reaching a valuation of $4 trillion. Meanwhile, the dollar was barely changed, and the euro dipped lower as U.S. president Donald Trump sent final tariff notices out to seven minor trading partners. The Trump administration is also getting closer to an agreement with the European Union, its largest trading partner. Trump escalated his trade war on Tuesday by announcing that he would impose 50% tariffs on imported copper. This move caused the copper price in the United States to soar and stock prices in America to fall. He said that he will soon introduce pharmaceutical levies up to 200%. On Wednesday, U.S. Copper Futures increased their premium over the London benchmark. Oliver Pursche is a senior vice president with Wealthspire Advisors, based in Westport, Connecticut. Investors aren't paying attention to the noise because they don't believe that tariffs will cause a lot of inflation and economic chaos. This hasn't been the case. Investors will be watching for further developments on Trump's trade dispute in the days to come, after he warned 14 countries that they would face sharply increased tariffs by a new deadline set at August 1. Artificial intelligence leader Nvidia, the first publicly traded company to achieve this milestone, helped boost U.S. stock prices. The Dow Jones Industrial Average increased 139.86, or 0.31 percent, to 44 377.77. The S&P 500 gained 25.30, or 0.41 percent, to 6, 250.83. And the Nasdaq Composite grew 152.17, or 0.75 percent, to 20,570.63. Investors are concerned that tariffs will increase inflation and slow down economic growth. The U.S. stock market remained higher after the minutes of the Federal Reserve meeting on June 17-18 showed that only "a few" officials felt the interest rate could drop as early as this month. The majority of policymakers are concerned about the inflationary pressure that they expect will come from Trump's use import taxes to reshape international trade. MSCI's global stock index rose by 3.92 points or 0.43% to 922.23. The pan-European STOXX 600 ended up with a gain of 0.78%. The dollar index (which measures the greenback in relation to a basket currency) fell 0.03% at 97.52. Meanwhile, the euro dropped 0.07%, reaching $1.1716. The dollar fell 0.18% against the Japanese yen to 146.28. Japan, which is heavily dependent on exports and has the highest level of dependence on them, is farthest away from a deal with Washington. Treasury yields in the United States fell. The yield on the benchmark 10-year U.S. notes dropped 7.5 basis points from late Tuesday to 4.342%. The benchmark German 10-year yield was 2.637%. U.S. crude oil rose 5 cents, settling at $68.38 per barrel.
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EnergyX, backed by GM, buys land rich in lithium deposits in the US Smackover Formation
EnergyX, a lithium-technology startup backed up by General Motors has purchased 35,000 acres from Pantera Lithium in the Smackover Formation. This is the latest deal to gain access to the brine formation of the United States, which is teeming full of supplies for the battery metal. EnergyX, a privately-held company, now owns roughly 47,500 acres of the Smackover formation, a geological formation that stretches from Florida to Texas and is filled with brine rich in lithium. The deal also shows the increasing interest in increasing U.S. metal production despite the low market price. Chevron has purchased Smackover land in recent weeks, joining Exxon Mobil and other companies with stakes in the area. Analysts estimate that the Smackover may contain over 4 million metric tonnes of lithium. This is enough to produce millions of electric cars and electronic devices. EnergyX has agreed to pay A$40m ($26.1m) for the land in southern Arkansas. The deal includes A$6m in cash and 2.3m shares of EnergyX, which the companies value at A$14.50 each. EnergyX, controlled by Teague Egan as CEO, has previously discussed a listing. Pantera, who had originally agreed to purchase the acreage by 2023, will become a minority investor in EnergyX once the deal is closed, expected in the latter part of this year. EnergyX will also build a refinery to process the lithium in Smackover brine. The company hopes to produce 12,500 metric tonnes of lithium annually by 2028, and 30,000 by 2030. GM has the first right of refusal to purchase lithium from any EnergyX project. GM led a $50-million financing round in 2023. Direct lithium extraction (DLE) is the only way that all companies can extract lithium from Smackover. This has never been done commercially before. EnergyX must also apply to Arkansas officials for a rate for lithium royalties. In recent weeks, Arkansas officials have approved rates for nearby projects of Standard Lithium and Exxon. EnergyX attempted to purchase Galan Lithium assets in Argentina last year, but failed. EnergyX is backed by a consortium led South Korean conglomerate Posco Holdings. EnergyX also has a lithium development project in northern Chile.
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Chile and Mexico prepare for Trump's copper tariff announcement
The President Claudia Sheinbaum stated on Wednesday that Mexico could redirect copper it usually sends to the U.S. in order to avoid tariffs by the Trump administration. Her Chilean counterpart Gabriel Boric, however, said he has yet to hear anything from the U.S. As part of his effort to increase domestic production, U.S. president Donald Trump announced on Tuesday that he will soon announce a tariff of 50% on copper imports. Copper accounts for nearly half the metal used in the United States. News is likely to be a newsworthy event Set off a scramble Ship copper to the United States before tariffs are implemented, which is expected by the end or August 1. Chile is the Top refined copper supplier Mexico is ranked fifth in the world, behind the U.S. The United States is a relatively minor part of the Mexican and Chilean exports of copper, which are primarily sent to China in both cases. Sheinbaum noted that Mexican officials will be in Washington, D.C. on Friday to discuss previously scheduled issues of trade, immigration and security. She said at her daily press conference held in Mexico City that "copper is needed everywhere in the world. There are many options." "Our responsibility is seeking the best possible negotiations with the U.S., and at the same look for other options to national production and exports in other destinations." Boric told reporters in Santiago that the U.S. government had not yet communicated with him, and he was waiting for official confirmation. Tariffs The copper cathodes would be included, but "whether or not this will actually happen is a question". He advised caution until more information was available, and seemed to criticize Trump's penchant for making impromptu statements, which he often shares on social media. Boric, a reporter, said that in diplomacy policy is not made through social media but rather formal communication. Reporting by Daina-Beth Solomon, Fabian Cambero and Ana Isabel Martinez from Mexico City and Santiago; editing by Adam Jourdan & Mark Heinrich
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Trump hosts five African leaders amid tariffs and aid cuts
On Wednesday, President Donald Trump met with leaders of five African countries as the U.S. president intensified a trade conflict that threatens developing countries that depend on the trade with the largest economy in the world. A White House official confirmed that Trump will host leaders from Gabon and Guinea-Bissau as well as Liberia and Mauritania for a lunch and discussion at the White House. The discussions are expected to be focused on business opportunities. Africa experts await Trump's announcement of dates for a larger summit with African leaders. This could be in September, around the time for the United Nations General Assembly. The mini-summit this week is the latest attempt by successive U.S. Administrations to counter perceptions that the U.S. has neglected a continent on which China has made increasing economic inroads. Since Trump's inauguration in January, the Trump administration has imposed steep cuts on foreign aid to Africa as well as waged a tariff-war against U.S. trading partner. Melania, Trump's wife, visited Africa during Trump's first term. In 2018, some African politicians branded Trump as a racist after it was reported that he had called immigrants from Africa and Haiti "shithole countries". Trump falsely accused South African President Cyril Ramaphosa of genocide against whites and land seizure during a heated White House meeting in May. The focus of the meeting on Wednesday was likely to be economics. The U.S. International Development Finance Corporation announced earlier that day that it would provide funding for project development at the Banio Potash Mine, Mayumba in Gabon. This will help Gabon to reduce its dependency on imported goods. Conor Coleman, DFC's head of investments, said that DFC's efforts benefit not only the countries and communities in which they invest, but also U.S. interests by opening up new markets, strengthening existing trade relationships and promoting an economically prosperous and secure global economy. Trump's government has continued to send letters informing trading partners that higher tariff rates will take effect on August 1. It also launched a new front of his trade war with members of the BRICS Group of developing countries. The Obama administration also cut large swaths from U.S. Foreign Aid for Africa in an effort to reduce spending that it deems wasteful, and refocus on a "America First" agenda. The Lancet Medical Journal published a study last week that showed these cuts could lead to an additional 14 million deaths by 2030. The U.S. government has stated that it will prioritize trade and investments over charitable assistance, and focus on increasing opportunities for U.S. companies. The five countries that were invited all have rich natural resources including gold, cobalt and lithium, as well as manganese ore, iron, diamonds. China has invested heavily in Africa, particularly in the extraction of resources, in recent years. African Union officials are questioning how Africa can deepen its trade relations with the U.S., given what they call "abusive tariff proposals" and visa restrictions that primarily target travelers from Africa. Ambassador Troy Fitrell has denied allegations that the United States engages in unfair trade practices. (Reporting and editing by Deepababington, Matt Spetalnick, Andrea Shalal)
After Trump tariff announcement, the indicator of Chinese copper demand increases by 38%
A measure of the demand for copper in China, its largest consumer, jumped by 38% on Tuesday, indicating a robust appetite for this metal after U.S. president Donald Trump's plans to impose a 50% tariff on imports pushed down London benchmark prices.
According to U.S. Secretary of Commerce Howard Lutnick the levy is expected to take effect by August 1. Analysts and traders stated that cargos already in transit or coming from Latin America are likely to arrive before the tariff is implemented.
Yangshan Copper Premium
Anant Jatia of Greenland Investment Management a hedge-fund that specialises in commodity arbitrage trading, explained the increase in premium as a result of the expected weakness at the London Metal Exchange.
He said that "a lot of copper bound to the U.S. won't make it before tariff implementation date" and will flow back to the LME.
Last week, the LME copper contract fell 1.5% to $9.645 per ton.
The uncertainty surrounding Washington's plans regarding U.S. scrap copper exports also supported the Yangshan Premium. China's top copper scrap supplier is the United States, but Chinese buyers are reducing their imports since Trump won in November. (Reporting and editing by David Goodman.)
(source: Reuters)