Latest News
-
US refiners to make higher profits in Q4; Venezuela is the focus
Energy analysts expect top U.S. refiners to report stronger profits in the fourth quarter as margins boosted by the Russia-Ukraine conflict?boosted earnings. Fuel producers have made unexpected profits after their earnings had slid in 2022. That was the year that a'recovery in demand after the pandemic, and Russia's invasion in Ukraine, drove up fuel prices. In a recent note, Tudor, Pickering, Holt & Co's Matthew Blair stated that the main reason for diesel margins was Ukrainian drone attacks on Russian refineries, which affected global supply. He said that the widening differentials between Brent, the global benchmark crude oil price, and nearly all major crude grades provided some relief to refiners. Valero is the second largest U.S. refining company by capacity. Analysts are forecasting a profit per share of $3.27, a jump from $0.64 a share a year ago. LSEG estimates that Marathon Petroleum, which is the largest refiner in the United States by volume, will report a profit per share of $3.01 compared to $0.77 a year earlier. According to LSEG estimates, Phillips 66 will report a profit of $2.19 versus a $0.15 loss per share a few years ago. VENEZUELAN CRUDE MAY BOOST GULF COST REFINERS The U.S. Military's ouster earlier this month of Venezuelan president Nicolas Maduro is set to reroute Venezuela's oil exports towards the U.S. This would be beneficial for complex refineries located along the Gulf Coast refining-and-exporting hub. TD Cowen analyst Jason Gabelman stated that the Venezuelan regime?change, which was once a major producer of oil, led the market to believe that crude differentials would widen as more Venezuelan barrels made their way 'to the U.S. Gulf Coast refiners such as Valero Marathon and Phillips 66 have built complex refineries to process heavy crude - similar to the kind Venezuela exports. Simon Wong is the portfolio manager of Gabelli Funds. He said that investors will want to know how quickly refineries in the Gulf Coast can accept Venezuelan crude and how this will affect pricing. Ben Hoff is the head of commodity analysis at Societe Generale. He said that Venezuelan production was structurally challenging and could not be increased in a short period of time. "I believe this is something that we will ultimately see how the economics work out." Reporting by Nicole Jao, New York; editing by David Gregorio
-
Amazon cuts 16,000 jobs to push AI and efficiency
Amazon announced 16,000 corporate job cuts on Wednesday. This completes a plan of around 30,000 jobs since October. However, the company has left open the possibility that there could be further reductions. Last week, it was reported that Amazon planned to cut a second batch of jobs as part of its broader goal under Andy Jassy. Jassy has been working on reducing bureaucracy and abandoning underperforming businesses. Amazon announced on Tuesday that it would close its remaining brick and mortar Fresh grocery stores and its Go markets despite years' worth of efforts. It also said it would drop its Amazon One biometric payments system, which scans a customer’s palm. Amazon has cut 30,000 jobs in the last three decades. This is a smaller number than its 1.58 million workers, most of whom work in warehouses and fulfillment centers. However, this represents nearly 10% of their corporate workforce. It's also more than 27,000 cuts made between 2022 and 2023. Beth Galetti said that the job cuts at Amazon were needed to "reduce layers, increase ownership, and remove bureaucracy", according to a blog post by its top executive in human resources. Galetti said that some teams will continue to make "adjustments as appropriate" and Galetti did not rule out further reductions. These latest layoffs are the second major round in just three months, after Amazon cut 14,000 jobs last October. At the time, the company blamed artificial intelligence and concerns over changing corporate culture. Amazon also admitted that it hired too many people during the COVID-19 epidemic, when online shopping soared. In a note on Wednesday, Galetti stated that "some of you may wonder if we are starting a new rhythm where we announce large reductions every few month." She said, "That's just not our plan." Amazon sent an incorrect email on Tuesday to Amazon Web Services employees, referring to the layoff plans as "Project Dawn". This caused confusion and upset for thousands of workers. Employees from various AWS units including Prime Video, Alexa, devices, advertising, and last-mile delivery have indicated that they were affected. Other?roles that were affected included those in Kindle, and supply chain optimization within Amazon's Fulfillment unit. Amazon did not reply to a?request for comment after it announced its plans to shut down the Fresh and Go stores on Tuesday. Job cuts are also a sign of how AI is changing the dynamics of corporate workforces. AI assistants have made significant improvements, allowing enterprises to perform tasks from simple administrative?tasks up to complex coding issues with speed and precision. This has led them become more widely adopted. Jassy stated last summer that the increasing use of AI tools will lead to more automation, which in turn would result in corporate job losses. Two executives at the World Economic Forum annual meeting in Davos stated last week that AI will be used to justify companies cutting jobs. Amazon, Facebook's Meta Platforms, and Microsoft have all increased their hiring in response to the COVID-19 demand surge. They are also currently restructuring. UPS, Pinterest, and ASML have all announced recent staff reductions. Amazon invests in robotics for its warehouses, to increase the speed of packaging and delivery and reduce the reliance on labor. Amazon shares, which are set to release quarterly results next Monday, fell 2.1% during regular trading on Wednesday. (Reporting and editing by Arun K. Koyyur and Nick Zieminski in Bengaluru, and Deborah Sophia and Zaheer Kachwala from Bengaluru)
-
Gold reaches $5,300 for the first time due to dollar weakness before Fed decision
The gold price surpassed $5,300 an ounce on Wednesday for the 'first time,' driven by economic uncertainties and a weakening?U.S. dollar. Investors waited for the Federal Reserve to announce its policy amid growing concerns about their independence. By 12:45 pm, spot gold had risen 1.9% to $5,289.48 per ounce. After reaching a record of $5,311.31, ET (1745 GMT), gold prices fell to $5,289.48 an ounce. The previous session saw prices rise by more than 3%. U.S. Gold Futures for February Delivery jumped by 4% to $5286.50 per ounce. Dollar-priced gold is now cheaper for foreign buyers. Peter Grant, senior metals analyst at Zaner Metals and vice president at Zaner Metals said: "The rally has taken on a new life at this point." Grant said that gold remains overbought, and is vulnerable to a "correction". However, strong buying during dips continues the trend of the upside. The next 'target', he added, was projected to be $5,400. ALL EYES ARE ON THE FED AND POWELL’S REMARKS Investors awaited Federal Reserve policy decision to be announced at 2 p.m. ET (1900 GMT) on Wednesday. Rates are expected to remain unchanged and attention is focused on Chair Jerome Powell's post-meeting remarks. ET (1900 GMT), with the expectation that rates will remain unchanged and the focus on Jerome Powell’s remarks after his meeting. U.S. president Donald Trump announced on Tuesday that he will soon announce the person he has chosen to replace Powell. Powell's term as chairman ends in May. He also predicted rate reductions under the new leadership. Gold is a safe haven asset, which does not pay interest. It performs best during times of low interest rates and general uncertainty. Gold has gained over 20% since the beginning of the year, adding to last year's record gains. Retail demand is still weak due to these record-high prices, and there are a lot more pent up?demands waiting for a change. Grant stated that dealers are pulling away from the scrap metal business due to the backlog of refiners who are not accepting new orders until the metal has been processed. Silver spot rose 1%, to $114.13 per ounce. It had hit a record-high of $117.69 an ounce on Monday. This year, it has gained almost 60%. The spot price of platinum dropped 0.6%, to $2623.90 per ounce after hitting a record high of $2,918.80 an ounce on Monday. Palladium, however, rose 4.2%, to $2014.50.
-
London's FTSE 100 drops as investors shift to US tech stocks before Fed decision
Investors became cautious in anticipation of the U.S. Federal Reserve interest rate announcement, and UK blue-chips index fell on Wednesday. It was weighed down by banks and healthcare companies, as it missed a 'tech-led rally' that had boosted Wall Street's indexes. The FTSE closed down by 0.5% while the domestically focused FTSE 250 ended little changed. Axel Rudolph is a senior financial analyst with IG. He said that there was a shift away from European and U.K. stock to U.S. tech stocks before earnings, which weighed down the FTSE 100. The FTSE 100 is a relatively smaller technology share compared to its U.S. counterparts. Healthcare stocks dropped 2.4%, and were the largest drag on the FTSE 100. Oxford Nanopore Technology?and AstraZeneca fell 4.9% and 2.7% respectively. Banks also fell by 1.3%. Barclays fell 2% while HSBC Holdings dropped 1.5%. Luxury stocks were also under pressure as French luxury conglomerate LVMH fell 7.9% after its fourth-quarter earnings dashed investors' hopes of a rapid recovery in luxury demand. Its CEO Bernard Arnault was cautious with his outlook. Burberry and Dr. Martens both declined by 4.7% and 1.8% respectively. Gold prices continued to rise above $5,300 an ounce, causing precious metals miners to rebound 2.2% from their losses on Tuesday. Oil prices reaching their highest level since late September also helped to boost energy stocks, which rose 1.2%. Shell and BP both gained around 1%. According to Caribbean energy Minister Roodal moonilal, the companies are looking for U.S. licensing to extract natural gases from fields in Trinidad and Tobago and Venezuela. The focus now shifts to the Fed policy update, which is expected to be released later today. Most traders expect the U.S. Central?Bank to keep interest rates unchanged. Pets at Home rose 5.4% as the pet care retailer kept its full-year forecast, despite lower third-quarter revenues. This was attributed to price cuts made in its retail turnaround strategy. (Reporting and editing by Tharuniyaa in Bengaluru, Sahal Muhammed, and Varun H. K.)
-
A new documentary highlights King Charles's work as a nature activist
The historic Windsor Castle, home of Britain's King Charles, will be the site of the first ever film premier at a palace. The filming of "Finding Harmony : A King's Vision", filmed over seven months in 2017, will be shown next month on Amazon Prime. It is described as a personal look at the 77-year old monarch's environmental activism, and his philosophy. Charles is shown reflecting on his experiences. From being ridiculed for speaking to plants, to his hope that the sustainability vision he has embraced in many projects around the world will save the planet. Charles says, "It comes down to the simple fact that we are nature, and not something separate from it. This is how the world has been presenting things for so long." The film was produced in collaboration with his charity, the King's Foundation. "Maybe by the time I leave this mortal coil, there will be more awareness of the need to put things back together." PRAISE AND RIGOR The king, who was constitutionally obliged to remain above politics as both Prince of Wales and King, has been vocal about the need for human behavior to be in harmony and balance with nature. He has received praise and ridicule, and is accused of inappropriate meddling. He says, "All of this was thought to be completely bonkers" at one point. In another scene, he is seen collecting eggs from an hen coop named "Cluckingham Palace". Al Gore is among those who have contributed to the documentary. Judi Dench, Kenneth Branagh, Kate Winslet and Charles and Queen Camilla will be joining them at the 1,000-year old castle, where a special cinema has been created for the occasion. The documentary is meant to be a positive message on the environment. However, it comes at a time where U.S. president Donald Trump (whom the film does not mention) has described climate change as the "greatest con job" of the world. "It is rapidly regressing." Charles says, "I've been saying that for 40 years. But anyway, here we are. "So that's the reason I get a little, anyway." Charles?ruefully says. I can only do as much as I am able to, which isn't very much." Amazon Prime will offer the documentary to all viewers worldwide on February 6. It would be nice to see if we could reach people. But who knows? Charles says. (Reporting and editing by Gareth Jones, Michael Holden)
-
Copper and aluminum prices continue to rise as speculation continues
After the U.S. Dollar fell to a?four-year low, speculative traders continued to make?bullish investments in industrial metals. At 1700 GMT, the benchmark three-month copper price on 'the?London Metal Exchange' was up 0.6% to $13,088 per metric ton. Aluminium rose 1.6% to $3.258, reaching its highest level since April 2022. Zinc was up 0.5% to $3.366.50, after hitting its highest level since January 2023. The dollar has stabilized after Tuesday's?lowest level since February 2022. The dollar's weakness makes dollar-denominated commodities more affordable to those who hold other currencies, and this can increase demand. Analysts from brokerage Sucden Financial stated on a Wednesday?webinar that the rally of base metals is being driven more by macro-positioning than metals specific?fundamentals. Robert Montefusco, from Sucden, said: "We've seen the specs of gold and silver?all?piling into the base metals too." Cash LME copper was trading at $95 per ton less than the forward three-month contract The steepest discount in August suggests that metal is not needed for the near future. The Yangshan premium The price of copper in China, the world's largest metals consumer, fell to a 18-month low at $20 per ton. Daria Efanova is the head of research at Sucden. She said that Chinese producers are offloading their copper to the LME in order to reduce risk ahead of the Lunar New Year holidays, which will be held in February. Aluminium prices rose after Goldman Sachs increased its forecast for the first half of this year to $3,150 per ton from $2,575. They cited low inventories and concerns about power availability at new smelters located in Indonesia, as well as robust global demand growth from electric vehicles and power grids. Lead fell 0.1%, while nickel rose 0.8%, to $18,310, and tin increased 1.9%, to $55,905 following a record high of $58,340 set on Tuesday. (Reporting and editing by David Goodman. Additional reporting by Lewis Jackson, Dylan Duan and Dylan Duan)
-
Why is fluoride added to US water?
The U.S. Environmental Protection Agency released its plan for determining safe levels of Fluoride in Drinking Water and is soliciting public comments until February 27, 2019. The EPA said it could use the information to update the current fluoride standard for drinking water under the Safe Drinking Water Act. Robert?F, a fluoride critic, has made the issue a top priority. Kennedy Jr., who is the head of the U.S. Department of Health and Human Services and called fluoride an "industrial waste," Fluoride promotes dental health and strengthens enamel. What you need to know about the public health measure of fluoridating drinking water: What is fluoride and what are its benefits? It has been proven that fluoride, which is found in water, soil, and the air, can prevent dental decay. It strengthens the enamel of the tooth, which is its outer hard surface. This makes it more resistant against the acid that bacteria produce to cause decay. Fluoride can also reverse early tooth decay, by replacing minerals and preventing their loss. Before the introduction of fluoridation in community water, American tooth decay was severe and widespread. According to federal officials, after fluoride was added to water supplies in the United States in many locations, tooth decay decreased in children and adults. Complete tooth loss among older adults also became less common. When did water fluoridation as a policy begin? Researchers in the United States noticed that those who lived near water sources that contained high fluoride levels naturally were more likely to have teeth that are resistant to decay. Grand Rapids, Michigan, became the first city to add fluoride in a controlled way to its water in 1945. This was the beginning of a massive public health experiment. Over a period of 15 years, data showed that fluoride reduced tooth decay by more than 60% among 30,000 Grand Rapids children. In the 1950s the U.S. Public Health Service, and the American Dental Association recognized the effectiveness of water fluoridation to reduce cavities. This led to the widespread adoption of fluoride as a component in water supplies in the United States and its eventual inclusion in dental products like toothpaste and mouthwash. Fluoridation is not a federally mandated practice. Municipal governments, city councils and local water authorities are typically the ones who decide whether to fluoridate their water. How widespread is fluoridation in the U.S. According to CDC data, as of 2022, fluoride is present in the community water systems of 63% of Americans. This was before Utah, Florida and other states banned water fluoridation by 2025. According to the American Dental Association 'the average annual cost for U.S. municipalities to fluoridate water supplies ranges from $50 per person in large communities up to $3 per individual for small communities. Fluoride is not added in most countries to public water supplies. In some countries, fluoride is added to salt. Fluoride levels are high in some areas of the world. Are the levels of fluoride regulated? The U.S. Public Health Service suggests that fluoride levels in drinking water should not exceed 0.7 milligrams/liter. It is known that levels above 1.5 mg/L can increase health risks, such as thyroid disease and nerve system damage. According to the U.S. Environmental Protection Agency, this limit is 4.0mg/L. Recently, a federal judge in California ordered the EPA's regulations to be strengthened. What companies make fluoride? The compound Fluorosilicic Acid is most commonly used in water systems because it releases free fluoride quickly when mixed with water. According to the EPA, J.R. Simplot and Nutrien’s PCS Phosphate Company manufacture this product. According to EPA data, the total domestic production in 2019 of fluorosilicic acids from phosphate rocks was around 29 million kilograms (32 thousand tons). What did Kennedy say? Kennedy claims that in the absence conclusive proof, water fluoridation is linked to numerous health problems including cancer. What do public health experts say? The Centers for Disease Control and Prevention in the United States have named fluoridation as one of the top 10 achievements of public health of the 20th Century. They note that it prevents tooth decay irrespective of socioeconomic status, or the ability to access care. The American Dental Association has reiterated their support for water fluoridation in communities to prevent tooth decay. The association stated that studies show community water fluoridation can reduce tooth decay in adults and children by over 25%, even when fluoride is widely available in toothpaste. What questions do recent studies raise about?FLUORIDE'? In October 2024, a review by Cochrane Database of Systematic Reviews based on 157 studies raised questions regarding the benefits of fluoridating public drinking water in rich countries. According to the research, since fluoride has been added to toothpastes since 1975, the benefits of community water fluoridation in terms of reducing tooth decay or increasing the number cavity-free kids may be modest compared to earlier studies. However, new lawsuits are also challenging the manufacturers over the safety of fluoride in toothpaste. Reviewers also concluded that there was not enough evidence available to assess the impact of ending fluoridation on dental health or the effect it would have on disparities in socioeconomic status. Researchers at the U.S. National Institutes of Health analyzed 74 studies in 10 countries and found that children who were exposed to more fluoride had lower IQ scores. Researchers reported that in four studies with a very low bias risk, involving?4,179 kids, urine fluoride levels at levels reportedly found in developed countries, were associated with lower IQs. According to an editorial that was published along with the report, these results "support concern for vulnerable populations who live in communities with water fluoridated." The second editorial, on the other hand, outlines the multiple flaws in the NIH analysis and warns against public policy regarding fluoride being affected by study results.
-
US EPA takes action to review fluoride in drinking waters
According to a Federal Register notice published on Wednesday, the U.S. Environmental Protection Agency has begun the first phase of its "expedited" review of safe fluoride levels in drinking water. This is a key priority for the Trump administration’s "Make America Health Again" agenda. According to the notice, the agency's final toxic assessment will help inform possible revisions of fluoride drinking standards under the Safe Drinking Water Act and also support the Centers for Disease Control and Prevention recommendations regarding?fluoride consumption in drinking water. The MAHA movement, which supports Health Secretary Robert F. Kennedy, Jr., has made it a priority to remove the mineral fluoride naturally present in drinking water. Kennedy, a long-time anti-vaccine activist, has implemented MAHA's priorities, such as reducing recommendations for childhood vaccinations, attracting rebukes from major medical groups. Kennedy has opposed the addition of fluoride in public drinking water for improving?dental care, and claimed that 'without scientific evidence' water fluoridation levels at U.S. level is associated with cancer, among other health problems. Kennedy announced last year that he was going to convene a panel of independent health experts in order to make a recommendation about fluoride. He also said that he intended to instruct the CDC not to recommend fluoride for drinking water. In?May, the U.S. Food and Drug Administration announced that it would take fluoride supplements from children's markets. The American Dental Association continues to support community water fluoridation. Studies have shown that it reduces tooth decay in children and adults by over 25%. In 2024, a federal court ordered the EPA to tighten fluoride regulations and to address the risks of fluoridating drinking water to children's IQ. The EPA announced in April that it would speed up the next fluoride assessment, as required by the Safe Drinking Water Act, which mandates a review every six years of the drinking water regulations. MAHA leaders have pressed EPA Administrator Lee Zeldin to align his agency’s agenda with their priorities of curbing pesticide application and reducing chemical exposure. In the notice, it was stated that the EPA would accept public comments for a period of 30 days. The draft assessment will then be peer reviewed by external experts.
US solicits interest from countries in nuclear waste sites and reprocessing facilities
The U.S. announced on Wednesday that it is requesting input from U.S. state governments on their interest in hosting a site for the development of nuclear fuel lifecycles, including storing nuclear wastes and spent fuel reprocessing.
The U.S. Energy Department calls these sites Nuclear Lifecycle Innovation Campuses. They could provide federal funding for the deployment of advanced reactors as well as co-located computer centers. Campuses could be used to enrich uranium. By April 1, the department is seeking input from all states.
Donald Trump is looking to quadruple the U.S. nuclear power capacity to 400 gigawatts in 2050, as electricity demand increases for the first decade. This surge comes from data centers and cryptocurrency.
This strategy represents a shift in policy aimed at solving an old problem that has plagued the U.S. Nuclear Industry for decades: What to do with radioactive waste? The administration believes that overcoming local opposition to waste disposal is crucial to reaching its ambitious nuclear expansion goals.
SUPPORT - PRIVATE, STATE OR FEDERAL
The DOE stated that it was seeking to prioritize private and state capital, and relying on "targeted and conditional federal support"?.
U.S. Energy Sec. Chris Wright stated that "Nuclear Lifecycle Innovation Campuses - give us the opportunity to directly work with states on regional priority issues to support President Trump's Vision to revitalize America’s nuclear base."
Wright said that the nuclear industry will benefit most from his department's lending office. The loan office has hundreds of millions of dollars of lending capacity.
In recent years, local concerns over radioactive and toxic wastes have slowed down the development of nuclear energy. Waste is stored at nuclear power stations in concrete and steel containers and spent fuel pools.
In exchange for federal support and assistance in attracting investment to develop nuclear power plants, states could host deep-underground waste repositories. This would be a departure from the long-held idea of storing?the waste beneath Nevada's Yucca Mountain.
In 1987, the Department of Energy focused exclusively on Yucca to be a repository for all U.S. Waste. However, former President Barack Obama stopped the project because state legislators were opposed. Over several administrations, the U.S. spent at least 15 billion dollars on Yucca.
The Department has focused its efforts on the consent-based site selection of nuclear waste after Yucca. There are currently no plans to build a permanent storage site.
Ronald Reagan, the former president of the United States, lifted a ban on reprocessing radioactive waste. The goal is to recover uranium or plutonium for re-use in a nuclear reactor. Costs have prevented U.S. firms from commercializing it. Non-proliferation activists are against reprocessing because it can be used by militants to obtain materials for a crude nuclear weapon. (Reporting and editing by Nia William; Timothy Gardner)
(source: Reuters)