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Judge limits US wildfire suit against Berkshire PacifiCorp
A federal judge dismissed on Tuesday a negligence claim against Berkshire Hathaway’s PacifiCorp utility division in the U.S. Government's lawsuit, which sought more than $900,000,000 in damages stemming a wildfire that occurred in Oregon in 2020. The U.S. District Court Judge Karin Immergut of Portland found that the government had not specified how PacifiCorp’s alleged negligence in maintaining its powerlines caused the Archie Creek Fire, in southwest Oregon. This rendered its "negligence" per se claim moot. A defendant can be found guilty of negligence per se if they are presumed to have violated a duty of caution when breaking a law. The only question is whether or not the violation resulted in injury. Immergut stated that Oregon's laws on wildfire prevention did not define PacifiCorp’s duty of care. The U.S. Government's broad allegations about PacifiCorp’s mistakes were "not enough." The government brought in claims for trespassing by fire, nuisance under common law and violation of license. Immergut has said that it will try to refile the negligence per se complaint. PacifiCorp had no immediate comment. The U.S. Department of Justice in Portland and the U.S. Attorney’s Office did not respond immediately to requests for comments. The Archie Creek Fire started on September 8, 2020. It burned 131.542 acres including 67.074 acres federal land before it was contained eight weeks later. PacifiCorp is also facing many private lawsuits including class actions that blame its equipment for Oregon wildfires. The company has already lost several "mini trials" and more are expected. PacifiCorp reported $2.75 billion in wildfire losses through June 30 and warned that they could increase significantly. Berkshire, located in Omaha, Nebraska bought PacifiCorp in 2006 for $5.1 billion. Warren Buffett, Berkshire Chairman & CEO, said at Berkshire's annual meeting on May 3, "we made some errors" by not protecting PacifiCorp from wildfire liabilities. Greg Abel, Vice Chairman and CEO designate at Berkshire Electric Company, said that when wildfire risk became too high "keeping the light on" no longer was a priority. US v PacifiCorp et al., U.S. District Court District of Oregon No. 24-02102. Reporting by Jonathan Stempel, New York Editing Bill Berkrot
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Nigerian president urges quick return for Brazil's Petrobras
Bola Tinubu, the Nigerian president, said at a press briefing with his Brazilian counterpart that Petrobras should be able return to Nigeria quickly. Petrobras started operations in Nigeria in deep waters near the Niger Delta in 1998. It sold its stakes over 10 years ago in order to raise money for domestic projects. Nigeria has worked to solve some of the issues that have limited its oil and gas production since then. "We have a large gas reservoir." "I don't understand why Petrobras should not return to Nigeria as a partner as soon as possible," Tinubu said at a press conference held with Brazilian President Luiz inacio Lula da S Silva on Tuesday in Brasilia. Tinubu stated, "I am grateful for President Lula's assurance that this would be done as quickly as possible." In an interview with a Brazilian newspaper, Jumoke oduwole, Nigeria's Minister of Industry, Trade and Investment, said that she hoped to have reached a deal with Petrobras by the end of this year. The two presidents have been talking. They will do whatever is necessary to encourage Petrobras to return. "We want this investment back in Nigeria," said she Petrobras has declined to comment about its possible return to Nigeria. Oduwole stated that Nigeria is focused on attracting specific profiles of international investments to its oil-and-gas sector. "We are looking for specific types of investors in countries such as Brazil, India, China, the Global South." Tinubu noted that the economic reforms are beginning to show results in Nigeria, citing an improved access to foreign currency. During their visit to Brazil, both leaders signed agreements in the areas of trade, aviation, science, and finance, as part efforts to improve ties between the largest economy in Africa and the biggest market in Latin America. The leaders also announced an agreement between Nigerian airline Air Peace and Brazilian aircraft manufacturer Embraer for the establishment of a service center in Nigeria. Embraer expressed interest in expanding its presence in Nigeria when asked about the talks. Nigeria will be Brazil's 49th most important export destination in 2024, with bilateral trade expected to reach nearly $2.1 billion. Brazil exported $1 billion in goods to Nigeria, mainly sugar and jams. It imported $1.1 billion of fertilisers. Petrobras' contribution is not clear. Nigeria's Foreign Minister said in May that the country and the company were discussing the exploration of the deep-water oil acreage. Petrobras also announced that it is in discussions with ExxonMobil and Shell to purchase a portion of their African assets. Reporting by Camillus EBOH in Abuja, Luciana MAGALHAES in Sao Paulo. Writing by Chijioke OHUIOCHA; Editing by Barbara Lewis and Alistair Bell.
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Iraq approves the principles of cooperation with Siemens Energy
According to a press release, the Iraqi cabinet approved Tuesday the basic principles of a framework for energy cooperation with Siemens Energy in Germany. The statement didn't provide any further details. In Iraq, Siemens has been working on several electricity projects. As part of an broader energy collaboration, the company awarded long-term contracts in 2023 for three power stations in Iraq. Siemens signed another deal in the same year to expand Iraq's electricity network. Iraq has suffered electricity shortages, which worsened during the summer heat, because it is heavily dependent on Iranian gas imports for its power generation. Sources from the Ministry of Electricity said that a power failure hit the central and south regions earlier this month after a sudden shut down at the Hamidiya plant caused a fault in electricity transmission. In the last two years, Iraq has signed agreements with oil companies that previously left the country. These include Chevron, France’s TotalEnergies, and UK oil giant BP. (Reporting and editing by Jaidaa T.A. Taha, Menna A. Alaa El Din; Jan Harvey).
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Kennedy: Trump agencies to work together on offshore wind review
Robert F. Kennedy Jr., Secretary of Health and Human Services in the United States, said that a group of federal agencies including the Departments of Defense, Energy and Commerce are working together to examine offshore wind farms along the Atlantic Coast approved by the Biden Administration. The disclosure, made during a cabinet meeting, shows a concerted effort by President Donald Trump's administration to undermine a sector that was central to the climate and energy agendas of former President Joe Biden. The administration issued a stop work order for a project that was nearly complete off the coasts of Rhode Island and Maryland. "We have now formed an inter-departmental team consisting of (Interior Sec.) Doug Burgum, (Commerce Sec.) Howard Lutnick, (Energy Sec.) Chris Wright, and (Defense Sec.) Pete Hegseth. Kennedy stated that "we're all working on this issue." Kennedy then brought up the recent high-profile failure of a blade at an offshore windfarm off the coast Massachusetts. The blades were thrown into the sea and washed onto nearby beaches. Kennedy said that offshore wind farms were expensive and dangerous to the fishing industry as well as whales. Trump had earlier criticized the wind energy industry. Trump stated that "We do not allow windmills." "We won't allow any windmills to be built unless someone has committed to this long ago." Reporting by Jarrett Renshaw in Washington, Trevor Hunnicutt and Nichola in San Marino, California. Editing by Nick Zieminski
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Dollar eases with Trump's Fed Battle, US Treasury Yields
The dollar and short-dated U.S. Treasury rates fell on Tuesday. President Donald Trump's decision to fire a Federal Reserve Governor raised concerns about the independence of the U.S. Central Bank. Wall Street stocks also edged up. Trump announced on Monday that he had fired Fed Governor Lisa Cook due to allegations of improper mortgage borrowing. Cook stated that Trump does not have the authority to fire Lisa Cook and she will not resign. Her term was set to expire in 2038. Trump's unprecedented move could result in a long-lasting legal battle, which risks setting new norms regarding the independence of the central bank and presidents' involvement in monetary policies. Cook's departure from the Fed may accelerate Trump's attempts to reshape Federal Open Market Committee (FOMC), which sets interest rates policy. Trump has pushed the Fed to reduce rates in order to stimulate growth and lower borrowing costs. The expectation of a more dovish Fed pushed yields on shorter-dated U.S. debt lower. A Fed that is politically motivated to keep rates lower than normal could cause inflation fears and decrease foreign demand on the basis of credibility concerns. These factors will affect longer-dated bonds. "President Trump has launched a potentially ineffective and risky battle against the Fed. Brian Jacobsen wrote that it would take seven FOMC members to vote in favor of Trump, and not two or four. Trump has repeatedly threatened to fire Fed Chair Jerome Powell. This month, he fired an official at the Labor Department after accusing her without evidence of manipulating job data which had disappointed him. Trump has now backed off from this threat, as Powell's term is about to expire in May next year. Inflation Report On Cook News, the dollar dropped against major currencies. A global stock index fell as European shares declined, with losses in France leading the way, as political unrest in France increased. France's CAC40 fell by 1.7%, as it became more likely that the country's minor government would be overthrown next month. Investors are awaiting Nvidia’s results, which will be released on Wednesday, and the key inflation report due later this week. The market is very focused on the inflation rate, consumer spending, and corporate earnings. Oliver Pursche is senior vice president at Wealthspire Advisors, a firm in Westport, Connecticut. He said that despite the pun, this trumps all. The Dow Jones Industrial Average rose by 3.22 points at 45,285.69. The S&P 500 gained 5.71 points or 0.09% to 6,445.03 while the Nasdaq Composite gained 30.17 points or 0.14% to 21,479.47. The MSCI index of global stocks fell by 2.37 points or 0.25 percent to 950.59. The pan-European STOXX 600 Index ended 0.83% down. The dollar index (which measures the greenback in relation to a basket of currencies, including the yen, the euro and others) fell by 0.29%, while the euro rose by 0.27%, reaching $1.1649. The dollar fell 0.31% against the Japanese yen to 147.31. The 2-year note US2YT=RR The yield moves along with the expectations of interest rates. The yield was down by 4.3 basis points, to 3.687% from 3.73% at the end of Monday. The yield on the benchmark 10-year U.S. note fell by 1.7 basis points, to 4.258%. Investors eagerly await the U.S. consumer prices reading on Friday, which is considered to be the preferred inflation indicator by Fed. Morgan Stanley became the latest brokerage on Tuesday to predict a U.S. rate cut for September. This follows other global firms who had forecasted a policy-easing in September in Powell's speech from last week. Gold prices rose, but oil prices dropped more than 2%. U.S. crude dropped 2.31% to a price of $63.29 per barrel. Brent, however, fell to $67.23 a barrel - a 2.28% drop on the day. Gold spot rose by 0.57%, to $3385.53 per ounce.
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Stellantis has paid US fuel efficiency penalties of $190.6 Million this year.
According to a report by the Italian-American automaker and the government, Chrysler's parent Stellantis was fined $190.6 Million for failing to meet U.S. fuel efficiency requirements. In an annual report, the National Highway Traffic Safety Administration stated that Stellantis had paid $112.3 in June and $78,3 in March as payments for shortfalls in 2019 and 2020 models. Stellantis paid a total of $773.5 Million since 2018. NHTSA informed automakers last month that they would not be fined for failing to meet fuel-efficiency rules going back to 2022, as per a law signed into law by President Donald Trump. Stellantis confirmed Tuesday the figures but declined to comment further. Trump's budget and tax bill eliminates penalties for failing to meet Corporate Average Fuel Efficiency rules set out in a 1975 law on energy. Rivian stated in a filing in court this month that the NHTSA had not processed any end-of-year or compliance notifications for 2022 and later model years, so it could not finalize transactions previously negotiated worth $100 million of credit revenue. Washington has made a number of changes to ease the process for automakers in building gasoline-powered cars. GM has already paid $128.2 Million in penalties to date for 2016. Tesla reported that it earned $2.8 billion last year from the regulatory credits it receives for selling zero-emission EVs, and sold to other automakers who are trying to meet vehicle emission targets. NHTSA declared in June that the former administration of Joe Biden exceeded its authority when it assumed a high uptake for electric vehicles to calculate rules. Under Biden's administration in 2023, NHTSA projected that its fuel efficiency proposal would cost the automotive industry $14 billion through fines. This includes $6.5 billion to GM, Stellantis and Ford, as well as $3 billion to Stellantis. The agency stated that the final rule adopted in 2013 eased the requirements, and that the industry will not face fines exceeding $1.83 billion through 2031.
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Critical Metals signs an agreement to supply rare Earth to a US Government-funded facility
Critical Metals announced on Tuesday that it had signed a 10-year contract to supply heavy rare-earth concentrate to Ucore Rare Metal’s U.S. Government-funded Louisiana processing plant. The Tanbreez Project, a Greenland-based mining project in the development stage, is expected to produce up to 10,000 tons of concentrate per year. This represents 10% of initial production projections. The U.S. is looking to increase domestic production of essential minerals in order to counter China's near total control over the sector. Ucore Louisiana's facility received $18.4 Million from the U.S. Defense Department to begin construction on phase one of four. The company expects to reach a capacity of 7,500 tonnes per year (tpa), in 2028. Rare earths is a grouping of 17 metals which are used to produce magnets, which turn energy into motion. China halted its exports to the United States in March, as part of the trade dispute with Trump. The tensions began to ease in June. Critical Metals received a letter in June of interest from the U.S. Export-Import Bank for a loan up to $120,000,000 to fund the Tanbreez Mine. This was the first investment by the Trump Administration in a mining venture overseas. Once fully operational, the Tanbreez project will cost approximately $290 million and produce 85,000 tons of rare earths and two minor metals per year. (Reporting and editing by Leroy Leo in Bengaluru, Pooja Menon from Bengaluru)
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Coffee prices are rising due to tariffs, climate changes and a smaller Brazil crop, according to the ICO.
The executive director of the International Coffee Organization, (ICO), said on Tuesday that tariffs imposed by United States, climate changes, and a smaller Brazilian crop are all driving up coffee prices. Vanusia nogueira, speaking at an event organized by the National Federation of Colombia Coffee Growers, said that despite the trend of rising prices, the market is still volatile. Nogueira stated that the global coffee supply has been in shortfall for several years due to production deficits caused mainly by adverse weather conditions in key growing areas. Brazil, which is the world's biggest coffee producer, has been hit by weather-related problems, such as frost. This has reduced the harvest size and bean weight. Nogueira said, "We do not know when Brazil's crop will return to normal. We experience very strong weather events each year." Experts say that tariffs of 10% to 50%, imposed by U.S. president Donald Trump, on coffee imports from countries producing the product have created uncertainty in the market. Nogueira said that despite the rising price, demand is still growing. "Consumers will pay." "Consumers want coffee," added she. (Reporting and writing by Luis Jaime Acosta, Writing by Natalia Siniawski, Editing by Gabriel Araujo).
Minister: Canada and its allies will explore financing critical mineral projects
Tim Hodgson, Minister of Energy and Natural Resources, said on Tuesday that Canada works with its allies in order to fund important mineral transactions. This is similar to the U.S. Government's work with MP Materials, which was done to diversify China's supply chain. Hodgson stated that the main target would be minerals under China's export restrictions, which are affecting production in G7 and NATO nations.
Hodgson: "I believe you'll be seeing us look at similar types transactions, working with allies."
The MP Materials deal differs in that the entire output is sent to the United States. He said that we are interested in these types of deals as a partnership with our partners to share the production with our allies.
MP Materials announced on July 10, that it has entered into a partnership with the U.S. Department of Defense in order to develop a domestic supply chain for rare earth magnets and reduce its dependence on foreign sources. (Reporting and writing by Riham Alkousaa, in Berlin; editing by Leslie Adler).
(source: Reuters)