Latest News
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SB Energy will sell shares worth up to $500,000,000 to Japanese investors as part US IPO
A filing on Tuesday showed that the SoftBank Group-backed Data 'centre developer SB Energy will sell up to $500 million worth of shares to Japanese investors as part a a U.S. public listing. The filing stated that the firm would issue new shares to the Japanese investors and the funds raised would be used for "general operating costs" for the development of data centres, "power generation", and other infrastructure projects. The filing did not disclose the size of the U.S. Initial Public Offering. SoftBank could be looking for a $50 billion valuation for SB Energy. SB Energy's investment prospectus from September reported that Nvidia had committed to investing $1.5 billion at the IPO price in a private placing, while OpenAI was issued warrants valued at approximately $5.5 billion. Investor interest in artificial intelligence led to a flurry of 'public listing' in related firms this year. SpaceX listed in June, and Anthropic is preparing to list in the second half of.this year. Japanese investors?secured a total of $2.2 billion in SpaceX shares at its IPO.
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Interior Secretary Burgum: US wants to issue deep sea mining permits in a few months
The Trump administration announced on Monday that it was close to approving permits to'mine' the deep sea as part of an broader effort to increase U.S. access to the vital minerals needed across the U.S. economy. Interior Secretary Doug Burgum told a G20 gathering in Houston of energy ministers that the permits could be issued within months, as the administration pursues its strategy of "energy add" to expand the supply chains of the country and its allies. Donald Trump, since returning to office in 2017, has taken steps to bolster the deep-sea mine industry. However, he still hasn't issued operational permits to allow it to move forward. Many environmentalists are concerned that seabed mining could lead to irreversible biodiversity losses. The Pacific Ocean, and other parts of the world are believed to have large quantities of polymetallic nodules (potato-shaped rocks) that can be used as building blocks for electronic vehicles, weapons and electronics. Burgum stated that "those nodules we have to vacuum up from the sea floor (are filled with?critical minerals we need." Burgum said that part of the solution is to ensure that we have a diverse, reliable, and affordable supply of essential minerals. In the last 18 months, U.S. exports of critical minerals, especially those processed in China by Chinese companies, have been limited as Beijing limits its exports. This has increased pressure on Washington, which is now urging it to support efforts to increase domestic mining. Burgum responded to Burgum's question about when the federal government could issue permits for deep-sea diving: "Those discussions are taking place right now." He added that "you'll hear more in the coming weeks and months because there's exciting developments on that front." Burgum's Interior Department supervises the Marine Minerals Administration which must approve all?permits for mining?U.S. Territorial waters. The MMA review would begin with a lease to allow private companies to have exclusive access to a part of the seabed. Then, a review process would be conducted to determine if an operational permit was needed. This would include a variety of scientific data. Separately Trump wants the Commerce Department to issue international permits. This could lead to a conflict with the United Nations' International Seabed Authority, which has tried to set standards for more than 25 year. The Metals Company, a privately-held company, and Impossible Metals are among the companies that have requested permits for seabed mining. Other companies have also applied for exploration permits.
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Texas penalizes data centers for violating water laws
On Monday, the 'governor' of Texas, a state that is one of the fastest-growing areas for artificial intelligence infrastructure, instructed'state regulators to penalize any data centers who fail to provide details regarding their water usage. Texas, which has halted new data center connections to the state's?electrical grid, pending an assessment of the facilities' water and power use, amongst other issues, re-examines its regulations for server warehouses. Governor Greg Abbott has directed the Texas Water Development Board to "impose legal consequences" to data centers and large water-using entities that fail to report their water usage. Abbott's office issued a statement saying that "major water users including data centers appear to have violated civil and criminal laws by failing to provide TWDB the required information about water usage." The 'Texas water regulator tries to survey data centres about their 'water use and consumption expectations. The data center will be denied new or renewed environmental permits if it fails to submit the survey by the deadline.
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Interior Secretary: US oil export ban unlikely lower energy prices
U.S. Interior Secretary Doug Burgum stated on Monday that a ban on U.S. fuel or oil exports was unlikely to help lower energy prices for consumers in the midst of the Iran War. Burgum, speaking to reporters at the G20 meeting on energy in Houston, said: "We'd consider an export prohibition if it actually could lower prices. But that's not true." Burgum, a Trump appointee, stated that a ban on the export of oil, gasoline, or diesel could result in retaliatory measures from other countries. This could harm consumers in California, whose energy imports are largely dependent on. Burgum stated, "We stopped exporting products, and then someone said, "We're not going to export to California." Burgum stated that California has already shut down several oil refineries which has contributed to the rise in fuel prices. Burgum stated that California already has the highest gas and diesel prices in the nation due to their policies. We don't want to make it worse. The Trump administration has run out of options to reduce prices for diesel and oil, which recently reached a record-high above $6 per gallon, and are even higher in California. The White House is considering how it can use the Cold War Defense Production Act in order to increase U.S. refinery capacity.
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US EPA will undo carbon emissions limits for power plants during G20 meeting
The U.S. Environmental Protection Agency announced Monday rules to repeal former President?Joe Biden?s limits on carbon emission from coal-and-gas-fired power stations and to prevent future climate regulations of these facilities. The move is part President Donald Trump’s effort to undo U.S. Climate Policy, which his administration claims has hampered energy production. The announcement was made at the sidelines of the G20 Energy Ministers' meeting in Houston this week, where global officials will discuss "regulatory efficiencies," expanding baseload power, and energy security. EPA Administrator Lee Zeldin stated that 'new measures to prevent future regulation on greenhouse gas emissions in the power sector would enable the U.S. build new generating infrastructure to meet the skyrocketing demand for electricity. He said that the Americans have demanded more common sense from federal agencies under President Trump’s leadership at a press conference held in Houston. "That means reducing red tape so that we can build a new power-generating system." Environmental groups slammed this new proposal. They said that it would be more expensive in terms of damage to the public and the environment. Nearly a quarter (25%) of U.S. emissions are attributed to the electricity sector. In June 2017, the Trump administration proposed to repeal regulations written by Biden that would have reduced emissions of mercury, carbon dioxide and other air pollutants at power plants. Biden's carbon emissions rules for power plants would reduce greenhouse gas emissions by one billion metric tonnes by 2047 as part of his administration’s fight against climate changes. This rule would have required that coal-fired power stations and new natural gas-fired generators install equipment to capture emissions in the next decade before they reach the atmosphere. This requirement made zero-emissions options like solar and wind attractive. Denying the existence of climate pollution that accounts for a quarter in the United States is reckless. Maggie Coulter said on Monday that it would 'lead to greater suffering and loss of life from extreme heatwaves, severe storms and destructive 'wildfires', similar to those we have seen this summer. According to a report by a reporter, Under Secretary of Energy Kyle Haustveit said that the new regulations would boost 'coal-fired electric power in the U.S. which has been steadily declining due to the availability and cheaper natural gas. He said, "President Trump has ended the war against beautiful, clean coal." "Coal has many advantages: it is affordable, reliable and secure."
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VTB sanctions imposed by the U.S.
Treasury Department: The United States imposed Iran-related Sanctions on Monday against?Russia's VTB Bank Public Joint Stock Company accusing it of involvement in Iranian sanctions evasion. Washington is seeking to increase economic pressure on Tehran. This action is a continuation of the sanctions that were imposed in 2022 against VTB, Russia’s second largest?lender. The bank was targeted following Moscow's full-scale invasion into Ukraine. Treasury Secretary Scott Bessent stated that "Under Operation Economic Outcast Treasury will continue to target those who provide material or financial support to the Iranian regime to enable it to maintain its terrorist enterprise." Treasury will not tolerate any regime support and will continue to expose and isolate Iran’s "enablers." Bessent warned that the Trump administration will sanction a "large bank" as it continues to exert economic pressure on Tehran in order to end a six-month conflict between the U.S. and Iran. Since the conflict began in February, the 'United States' has taken a number of economic measures to target Iran, including oil exports, shipping networks, channels for weapons procurement, financial intermediaries and digital asset exchanges.
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European shares fall on AI concerns and inflation fears
European shares dropped on Monday, as technology stocks were under pressure following leaders of top AI companies who pushed for a slower pace of development. Meanwhile, a surge in global bond yields and oil prices dampened risk appetite. The pan-European STOXX 600 index was down by 0.5%, at 635.99. The majority of regional markets fell, but London and Zurich's indices rose by 0.4% and 0.8% respectively. As AI-linked stocks fell globally, technology shares were among the worst performers, falling 2.1%. Dario Amodei, CEO of Anthropic, called for companies to halt the advancements in AI models due to misuse concerns. This view was backed by xAI’s Elon Musk as well as OpenAI CEO Sam Altman. The STOXX 600 was led by the French chipmaker Soitec, which fell 12.5%. However, software stocks gained. Octave Intelligence, Capgemini, Sage and Relx all rose between 5% and 75%. Chris Beauchamp is the chief analyst at IG. He said, "These stocks were victims of SAASpocalypse on fear AI would wipe their businesses out." "Those fears were exaggerated, but if the AI giants put their foot down, the outlook for revenue for Sage, RELX, and their SAAS brothers globally becomes much brighter. Even if this only delays a long-term loss of biz." European miners declined 2.5% as a result of the weakness in commodity prices. Healthcare stocks rose 2.7%, bucking the trend. GSK grew by 4.7% following the positive results of two lung cancer drugs. This added to the momentum in this sector. Energy stocks fell 0.8% but crude prices rose 2% as supply concerns increased after new strikes on Saudi energy infrastructure, and attacks against ships in the Middle East. Recent oil prices have heightened inflation concerns, which has led to expectations that central banks around the world could raise interest rates this year. The European economies are especially vulnerable to rising oil prices, as they heavily rely on imports. ECB policymakers warned 'on Monday' that euro zone inflation may exceed high forecasts. Traders now price in an additional 25 basis-point ECB rate increase by the end of the year after last?week?s rate hike. Government bond yields soared as a result of the developments. The 10-year bund - considered to be the benchmark for the region - was at its highest level since mid 2009. The benchmark U.S. 10-year Treasury yields also rose to a psychologically important level of 5%. The U.S. Federal Reserve is widely expected to raise its main lending rate by at least 25 basis point this week --?in stark contrast to the split chances between a hike or a pause that were seen only a week earlier. After a close election, which reduced the influence of the far right, Sweden's opposition centre-left appeared most likely to win power on Monday.
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German Finance Minister demands UniCredit CEO to meet certain conditions regarding possible Commerzbank acquisition
On Monday, German Finance Minister Lars Klingbeil outlined a list of demands to UniCredit CEO Andrea Orcel regarding the possible acquisition of Commerzbank by the Italian bank. The German Ministry of Finance said that these included Commerzbank staying listed on the stock market, maintaining its base in Frankfurt, and continuing to fund German medium-sized businesses?at home as well as abroad. After Berlin failed to stop a takeover, the meeting in Berlin marked an important turning point in the two-year struggle for control of Germany's largest bank. Klingbeil said, "In a productive discussion with Mr. Orcel I made it clear to him that future negotiations should be conducted responsibly." Orcel stated in a press release that the meeting was "a good and constructive first discussion that will be quickly followed by others." He said, "Both sides should now reflect on this initial discussion to find a way forward that is in the best interests of all stakeholders and shareholders."
Trump's quest for $1 trillion is unlikely to bring about Saudi-Israeli ties
Donald Trump, the U.S. president, will land in Riyadh, Saudi Arabia, on Tuesday. He will be welcomed with lavish ceremonies, palaces gilded in gold, and the prospect that $1 trillion worth of investments are in store. The raging Gaza war has prevented him from achieving a goal that he had long desired: Saudi-Israeli normalisation.
Two Gulf sources and an official from the United States said that behind closed doors, U.S. officials were quietly pressuring Israel to agree to a ceasefire immediately in Gaza. This was one of Saudi Arabia’s conditions for resuming normalization talks.
Steve Witkoff, Trump's Middle East envoy, told an Israeli embassy audience in Washington, this week, that he expected to see progress in expanding the Abraham Accords. The Abraham Accords were a series of agreements brokered by Trump during his first term, under which Arab countries including the UAE and Bahrain recognized Israel.
Witkoff stated in a video recording of his speech that "we think we will be making some or many announcements very soon, and we hope they will result in progress by next years." He will be expected to accompany Trump to the Middle East.
Two sources stated that the Israeli prime minister Benjamin Netanyahu's opposition to a permanent end to the war and the creation of a Palestinian State makes progress in similar talks with Riyadh very unlikely.
Saudi Arabia doesn't recognize Israel as legitimate. This means that the Middle East’s two most powerful economies and militaries do not have any formal diplomatic relations. Normalising relations would, say supporters of the move, bring stability and prosperity in the region while countering Iran’s influence.
Since the beginning of Israel's Gaza war, establishing ties is especially toxic for Saudi Arabia. It was the birthplace Islam.
According to six sources, including two Saudis and two U.S. government officials, this issue, which was central to bilateral discussions in Trump's term, is now effectively decoupled from other issues of economic and security between Washington and Saudi Arabia. All the people asked to remain anonymous in order to discuss sensitive diplomatic discussions.
Dennis Ross, an ex-U.S. negotiator, said that Saudi Arabia's defacto ruler, Crown Princess Mohammed bin Salman needs to see the Gaza War end, and have a path to a Palestinian State "before he engages in the normalization issue."
According to six sources, Washington and Riyadh are focusing Trump's visit primarily on the economic relationship and other regional issues. Both sides are looking at lucrative investments, such as mega-projects, arms deals, and artificial intelligence.
They said that the approach was cemented during diplomatic discussions between Saudi and U.S. officials before the trip. This is the first official state visit of Trump’s second term.
Trump has stated that he wants to invest a trillion dollars in U.S. firms, building upon the $600 billion commitment made by the crown prince.
The rich kingdom, which is the top oil exporter in the world, knows how to impress guests and secure favors. Sources said the goal is to avoid diplomatic landmines, and possibly, win concessions from Trump regarding the Gaza War and its aftermath.
The Trump administration wants to make this trip a big deal. This means lots of big announcements about deals and collaborations, which can be sold to Americans as good for America", said Robert Mogielnicki. He is a senior resident scholar with the Arab Gulf States Institute in Washington.
He said that "normalizing relations with Israel" was a more difficult task than rolling out a red carpet for Trump and announcing investments deals.
A State Department spokesperson refused to comment on an agreement reached before the trip. Trump, however, "will seek to strengthen the ties between our Arab Gulf partners and the United States during the visits."
The Saudi Government Communications Office did not respond to a comment request.
COURTING the Kingdom
Before Hamas' Oct.7 attack on Israel, which killed 1,200 people, and sparked the devastating Israeli offensive in Gaza - the Crown Prince was finalising a historic diplomatic agreement: A U.S. Defense pact as a trade for Riyadh recognizing Israel.
The scale of Israel’s campaign in Gaza - killing 52,000 and forcing 1.9 million people to flee - forced a pause on the talks. Bin Salman accused Israel's of genocide.
Two Gulf sources claimed that Trump, frustrated by the long-term crisis in Gaza, could use his trip to announce a U.S. plan to end the 18 month war.
They said that the plan could lead to a new transitional government in Gaza and new security arrangements - potentially reshaping region diplomacy, and opening up future normalization discussions.
Axios reports that Trump, in a sign of the importance of the diplomacy, met with Israeli Strategic Affairs Minister Ron Dermer privately on Thursday. They discussed the nuclear and war talks with Iran.
The U.S. State Department didn't immediately answer questions about Trump’s Gaza discussions.
Trump has conspicuously not announced that he will be visiting Israel during his tour of the area. Two diplomats have noted that the U.S. President has not spoken about his "Gaza Riviera plan" which angered the Arab World with its suggestion to resettle the entire Gazan community and U.S. possession of the strip.
Washington took a number positive actions in the lead up to the visit. A Saudi ceasefire in Yemen coincides with an agreement by the United States to stop bombing Houthis. Washington has also separated civil nuclear talks and the normalisation issue.
To bypass the opposition of Congress, the stalled Saudi U.S. Defense Pact was revived as a scaled-down version of security guarantees.
Three sources confirmed that the Trump administration is now taking up these talks along with discussions on a civil nuclear agreement. They cautioned, however, that it would take some time to define the terms.
CHINA INFLUENCE
Trump's Saudi Arabia trip is his second foreign trip after his reelection and first official state visit since his inauguration. He attended the funeral of the pope in Rome. He will also travel to Qatar and the United Arab Emirates.
Diplomats claim that beneath the showmanship and the hype of Trump's visit, lies a calculated U.S. attempt to reassert its influence and reshape the economic alignments of a region in which Beijing, Washington's main economic rival, has steadily increased its foothold within the petrodollar-based system.
Trump's first overseas trip in his first term began in Riyadh where he announced $350 billion of Saudi investments.
Trump has the deepest trust of the Saudi leadership. This is rooted in his close relationship with them during his first term, which was marked by massive arms deals and the steadfast U.S. support for Bin Salman.
Five industry sources confirmed that Saudi Arabia and its Gulf Allies plan to ask Trump to relax U.S. Regulations, which have been deterring foreign investment in the U.S. for years. This is especially true of sectors considered to be part of America's critical national infrastructure.
Saudi ministers are expected to advocate for a business-friendly environment in meetings with U.S. officials. This is especially true at a moment when China is actively courting Gulf capital.
Saudi Arabia will not find it easy to counter China's economic growth, even though this may be the top priority of Trump's foreign policies. China's influence in Saudi Arabia has grown since the launch of Vision 2030. It now dominates sectors such as energy, infrastructure, and renewables. Samia and Humeyra Pakuk reported from Washington, with additional reporting by Alexander Cornwell and Pesha Mahed in Riyadh. Samia and Humeyra also wrote the article. Frank Jack Daniel edited it.
(source: Reuters)