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California asks insurers for $1 billion to support FAIR Plan following the LA Fires
California Insurance Commissioner Ricardo Lara requested that the commission's members provide $1 billion to support the FAIR Plan, which is backed by the state. Wildfires devastated large areas of Los Angeles and the surrounding area last month. Lara directed the people responsible for the FAIR Plan, an insurance program that helps property owners who can't find coverage on private markets, to hire more staff. She also told them to use all funds available including reinsurance and reserves. Officials have reported that two fires, one on each side of Los Angeles, burned an area the size of Washington, D.C. from January 7 to their containment, killing 29 and damaging or destroying over 16,000 buildings. According to its website, as of February 9, FAIR Plan had received approximately 3,469 claims for damages caused by the Palisades Fire. It also received approximately 1,325 claims relating to damage caused by Eaton Fire. More than $914 millions has been paid to policyholders. In a Tuesday statement, Lara stated that "the FAIR Plan has to pay claims like any other insurer." In a statement, the Department of Insurance stated that the funding request was necessary to ensure the FAIR Plan continues to meet its obligations towards Californians. The request for funds could increase financial pressure on insurers, who have already been hit by a rise in catastrophe claims after several wildfires and natural disasters during the last two years. Last month, the catastrophe risk modelling firm KCC estimated that insured losses from the Los Angeles fires were about $28 billion. This makes them the most expensive in U.S. History. (Reporting from Kanjyik in Bengaluru, editing by Christopher Cushing).
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AGL Australia posts lower profits as concerns about cost of living curb price increases
AGL Energy, Australia's largest power producer, posted a decline in its half-year profits and lowered its earnings forecast on Tuesday as concerns about cost of living forced it to absorb the higher electricity costs instead of passing them on to consumers. The underlying profit dropped 6.5%, to A$373 ($234.8) million in the six-month period ending December 31, 2024. However, it was still higher than analyst expectations of A$307 millions. The statutory profit fell to A$97 from A$576 and consumer earnings dropped by a quarter to A$102. Damien Nicks, the chief executive, said that earnings were in line with expectations and "strong". He narrowed his guidance for full-year profits to A$580m and A$710m, with a midpoint higher than previously. AGL, along with Origin Energy and Energy Australia, is Australia's largest electricity retailer. The "Big 3" have been accused of exploiting their power in the face of a rising cost of living. An inquiry conducted by the Australian Council of Trade Unions found that they had overcharged consumers last year. AGL stated that the wholesale price of electricity in all Australian states was higher, but held back from passing on these increases because it was concerned about affordability. This caused margins for supplying energy to customers to drop 16.7%, to A$270 millions. Nicks stated that "assisting our customers to cope with the cost of living pressures continues to be a priority." AGL said that it also saw margins shrink as customers chose lower-priced electricity and gas plans. The telecommunications division of the company has seen a strong increase in gross margins, which jumped 53.8% from A$20 to A$20.8 million. This is due to an increased number of broadband and mobile customers. AGL reported that its total operating costs rose by 3.2% due to inflationary pressures as well as higher costs for maintaining its thermal power plants. Profits were also affected by increased investment in renewables such as Firm Power and Terrain Solar. AGL increased its investment in battery storage, including construction of the Liddell Batteries project, to A$667 Million. The Sydney-based firm, which counts technology billionaire Mike CannonBrookes among its largest shareholders, declared a dividend interim of 23 Australian cents for each share, lower than the 26 Australian Cents declared last year. AGL shares were up by 2% early in trading, despite the ASX swinging between red and blue territory. Reporting by Christine Chen, Sameer Manekar, Rajasik Mukherjee and Shilpa Majumdar in Bengaluru. Editing by Shilpa Majumdar and Stephen Coates.
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Australia's St Barbara will part with Canada's gold operations
St Barbara, an Australian gold miner, announced on Wednesday that it planned to separate its Atlantic Gold Operations, located in Nova Scotia, Canada, via a sale, vend-in, or demerger of its assets into a separate Canada listed firm. The Atlantic Gold Operations includes the miner's Beaver Dam, Cochrane Hill, 15-Mile and Cochrane Hill project, as well as its Touquoy Processing Plant. St Barbara purchased the Toronto-listed Atlantic Gold Corp in 2019 for C$722 millions ($505.35million). The miner said that after the divestment it will concentrate on its Simberi Gold Operations and the expansion of the Simberi Sulphide Project, both in Papua New Guinea. Andrew Strelein, CEO of St Barbara, said that the decision to separate Atlantic was based on the... potential for the Atlantic projects to be under the Canadian listed company with a Canadian leadership team... and to benefit from being close to regulators. St Barbara was forced to close Touquoy and place the processing plant under care and maintenance after failing to get permits on time. The miner in Perth said that the proceeds from the sale could be divided among the shareholders, used to expand Simberi Sulphide, or both. St Barbara's share price dropped 7.3% as of 0005 GMT, while the gold miners' index fell 1.4%. The company anticipates completing the divestment in the first half fiscal 2026.
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Andy Home: Beer, not tariffs will boost US aluminum capacity
If in doubt, double down. Seven years ago, President Donald Trump imposed 10% tariffs on U.S. aluminium imports with the stated goal of increasing domestic primary metals production. They haven't worked. The tariff will be 25 % this time, with no "exceptions or exclusions", effective on March 4. The tariff will be 25% without "exceptions or exemptions" effective March 4. The sharp rise in the price for aluminum delivered to the U.S. Midwest is bad news for U.S. customers. The effectiveness of higher tariffs in revitalizing the country's aged fleet of aluminum smelters is also uncertain. The humble beer can is a great way to achieve greater self-sufficiency in aluminium. Import Dependency Aluminium and steel have been lumped together again in Trump's tariff battles, despite the fact that they are very different markets. According to the U.S. Geological Survey, while U.S. imports of steel account for only 23%, aluminium accounts for 47%. The U.S. relies heavily on the importation of primary aluminum from Canada. Canada supplies over two million tons each year. Markets are already adapting to potential changes in trade flows and pricing. In a matter of a few days, the CME Midwest U.S. Premium contract, which captures delivered metal costs on top of the underlying aluminum price, has risen $100, to $629 per metric tonne. The implied tariff cost has not been fully priced because the London Metal Exchange is currently trading for $2,645 per tonne. Tariffs for 2018 on the aluminium market were highly negotiable. Canada was included at first, then excluded, included again, and exempted once again. This happened twice in a single month. It seems that the same carve-outs will occur this time. The European premiums for Canadian metal have fallen sharply. This is a sign that Canadian shipments are being diverted away from the American market, which has higher tariffs. Tariffs for POWER TRUMPS Aluminium production has not been affected by steel tariffs. From 20 in the early 2000s, the number of primary aluminum smelters operating in the United States has dropped to four. New Madrid, Missouri's only plant that reopened after the tariffs of 2018, closed again in 2024. The U.S. produced 670,000 tons of primary metals last year, down from 740,000 tons the previous year. This was before import tariffs had been implemented. Century Aluminum's Green Aluminum Smelter Project, which was awarded $500 million by the Department of Energy under the Bilateral Infrastructure Act and Inflation reduction Act of the previous administration, is the only hope. Century Aluminum has just received the first $10m tranche for further studies. This tells us that a new smelter will not be coming online anytime soon. The project is still in need of a source of renewable energy that will allow it to be classified as green. Electrolysis is the process that produces aluminium, and it consumes a lot of energy to turn alumina into metal. High power costs are the main reason for the demise of U.S. Smelter Sector. They remain the biggest hurdle to any greenfield smelter projects. Data centres are increasingly competing for renewable energy. Don't Litter It is easier for the United States than ever to reduce its import dependence. It is easy to find the solution, but it is often thrown out. With 106,7 billion aluminium cans sold in 2021 (over a quarter of global consumption), the country is the largest consumer of aluminum beverage cans. According to the Container Recycling Institute, recycling rates were only 43% in 2023. This is down from 57% in 2014. Under half of cans are thrown out to be landfilled or trashed. The improper sorting of metal at recycling plants results in a loss of about one-third. CRI estimates that the total waste in 2021 will be over 1 million tons of aluminum with a nominal value of $1.6 Billion. This is a significant amount of aluminum that's wasted every year, and it's more than the domestic production of primary metallic. Remelting an aluminum beverage can uses 5% less energy than making virgin metal. All countries with high recycling rates have some sort of deposit return system. According to the CRI, states that have deposit schemes in place achieved a rate of recycling of 74% compared to 26% for states without such schemes. If you introduce more deposit return schemes, some of the one million tonnes landfill waste could be returned back to the supply chain. The energy shortages in the United States mean that increasing recycling will be a more effective way to increase its domestic aluminum supply than tariffs. Tariffs will be imposed on the aluminum market and on the U.S. consumer. These are the opinions of the columnist, an author for.
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Edison Utility faces a shareholder lawsuit for wildfires in LA
Southern California Edison's parent company has been sued by shareholders for allegedly misleading them before the recent wildfires in the Los Angeles area, when it assured them that they could shut down the power lines to minimize the risk of catastrophic damages. The proposed class action filed against Edison International on Tuesday appears to be the initial shareholder lawsuit stemming directly from the Eaton Fire, which began in Altadena (California) east of Los Angeles during the Santa Ana winds. The fire destroyed over 9,400 structures, and 17 people were killed. Edison did not immediately comment on the complaint, but said it would review it. The shareholders led by Felipe Antillon claimed that Edison had made false and misleading claims for nearly four years prior to the fire. They said Edison was claiming to have used a program to "proactively shut down power lines" in order to reduce wildfire risk during "extreme weather conditions." Shareholders said that the truth started to emerge after Edison did not de-energize nearby power lines. Meanwhile, lawsuits blamed Eaton's electrical equipment as the cause of the fire. Since the fire, Edison's shares have fallen by 34%. The lawsuit is seeking unspecified damages from February 25, 2020 through February 6, 2025. Edison reported that on the second date it had received information suggesting there was a link between their equipment and the Eaton Fire. It also said they believed it could be linked to the Hurst Fire, which burned 799 acre. Edison's CEO Pedro Pizarro, and its Chief Financial Officer Maria Rigatti are also defendants. Edison is located in Rosemead. After unexpected events have caused stock prices to drop, shareholders often sue for alleged misleading disclosures and omissions. Last month's wildfires in the Los Angeles area may have been the costliest natural disaster to hit America. Antillon v Edison International Inc., U.S. District Court Central District of California No. 25-01154. Reporting by Jonathan Stempel, New York; editing by Cynthia Osterman
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Trump kills the US penny, but few mourn it
Nour Ismail is a cashier in Manhattan at All-Star Deli & Grocery. She says that the few pennies tossed to the tip jar at the end of each day are more of a nuisance than a reward for excellent service. The 24-year-old added that pennies as a tip are almost worthless. He said the offer shows the kindness of customers and they can sometimes add up. He said, "pennies aren't important," with a shrug. Donald Trump shared this view when he said, on Sunday, that he directed the U.S. Treasury to stop producing pennies. The U.S. Treasury oversees the U.S. Mint. The announcement made by Trump on his Truth Social platform has sparked a debate that's been going on for decades about the value and cost of the one-cent copper coin. Some people want to get rid of pennies, claiming that they are a waste. They point out countries like Canada who have done so successfully. The Mint's Annual Report states that a penny cost 3,69 cents last year, an increase of about 20% compared to 2023, due to materials costs, such as zinc. Larry Jackson, 65 years old, is a lifelong numismatist, meaning someone who studies coinage. He owns Larry Jackson Rare Coins, located in Atlanta. Jackson supports Trump's proposal. They don't use them. They don't even use them. Jackson said that they socked them away in drawers, cans, and jars. They then tried to bring them here in sacks. We don't want any of them. Even a 30-pound bag will not fetch $50. Jackson stated that there are some collectors who hoard coins minted before 1982 for their copper content. He said that the scheme would only be successful if melting them down became legal. It is not clear whether Trump has the authority to stop production of the penny despite his directive. According to the website of the Mint, the Mint receives its authority from Congress. The Treasury Department and the U.S. Mint did not return phone calls for comment. What's the worst thing that can happen to consumers? The penny coin is a very important part of American society, according to those who support it. They can be used to pay for small items in grocery and convenience stores or thrown into a charity jar as loose change. Mark Weller of Americans for Common Cents (a lobby group supported by companies involved in coin manufacturing) said: "The main issue is that this is bad for the consumers and economy." Weller stated that polling has shown Americans dislike rounding. Grocers and corner shops, who are facing razor-thin profit margins, will likely round up the price if this coin is discontinued. Weller said that, in addition to fueling the inflation, ceasing to use the penny "would disproportionately harm lower-income groups and people who are underbanked or unbanked, and are relying upon a cash economy." Cash is the cheapest option for consumers. A Wake Forest University study from 2007 of a convenience store chain in multiple states showed that removing the penny wouldn't create a rounded tax and wouldn't contribute to higher prices. Robert Whaples said that the loss of the penny is a wash to the consumer. It's just as much rounding down as it is up. Sean Snaith is an economist at the University of Central Florida and the director of the Institute of Economic Competitiveness. He agrees with the idea that the penny has become a historical relic. Snaith stated that penny candy and even gum balls for a penny are no longer available. He said: "I believe that at one point in history, canceling the penny would have made a bigger impact. But now people don't carry them around in their pockets." "They are largely not in circulation." Snaith stated that the nickel is a loss leader even more so, as it costs over 13 cents but only has a value of five cents. He said, "We are losing money on the nickel. People should be concerned about this." Canada announced its intention to eliminate the penny in 2012. The coin retained only one twentieth of its original value and removing it from circulation would result in an annual saving of C$11,000,000. Prices were rounded to the nearest five cents for all cash transactions. Payments made by credit cards, debit cards and checks that are not cash were also rounded to the nearest five cents. Richie Figueroa of Staten Island is 55 years old and agrees that pennies are a nuisance. He would like to see them eliminated. Figueroa: "I don't wait to get change for pennies a lot of the time when I go shopping." What purpose do they serve?
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Modi and Vance talk about 'diversifying India's energy sources
The White House reported that U.S. Vice-President JD Vance spoke with Indian Prime Minister Narendra modi on Tuesday to discuss how the United States could assist India in diversifying energy sources through investments in U.S. Nuclear Technology. Why it's important The two men met in Paris, France, on Tuesday to attend a summit on artificial intelligence. This was ahead of the Prime Minister's visit to the United States later this week, during which trade, investment and technology are likely topics for discussion. India announced earlier this month that it would amend its nuclear liability laws to encourage foreign and private investment in a highly-protected industry. Analysts claim that Washington has viewed India as a counterweight to China's growing global influence for many years. KEY QUOTE The White House released a statement saying that Modi and Vance had "discussed mutually-interested topics, including how to assist India in diversifying India's energy sources through investments in reliable, clean U.S. Nuclear technology." Modi wrote on X that he and Vance had "a great conversation about various topics." CONTEXT The strict liability under India's Civil Liability for Nuclear Damage Act of 2010, which was enacted in 2010, has hampered the implementation of a nuclear deal between India and the United States that included participation by U.S. power plants makers like General Electric and Westinghouse. Recent Call and Trump Comments Modi and Donald Trump talked late in January, after the U.S. President took office. The White House stated that during that phone conversation, Trump stressed the importance that India buy more American-made equipment for security and move toward a fair bilateral trading relationship. In Trump's first year, the Republican and Hindu nationalist Modi had a warm relationship. But during his re-election campaign, Trump called India "a very big abuser" of trade. Trump threatened to impose tariffs on the BRICS nations, which includes India, if they refused to agree with his demand that they not create a currency. Officials from the Indian government say that India is looking at tariff reductions in at least 12 sectors in order to boost U.S. imports and support New Delhi's plans for domestic production. Modi could also propose an increase in U.S. imports of energy and defense. Reporting by Kanishka Sing in Washington, Editing by Les Adler and Sandra Maler
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Trump's attempt to stop a judge's order banning funding freezes fails
U.S. president Donald Trump On Tuesday, the president lost the latest round of a legal battle in which he tried to stop federal spending. An appeals court refused to pause an order that required the government to keep delivering funds. The U.S. Department of Justice asked the 1st U.S. The 1st U.S. Circuit Court of Appeals decided late Monday night to suspend an order issued by a Rhode Island federal court earlier in the day. In a two-page decision, the 1st Circuit expressed confidence that the lower court will quickly clarify all the concerns raised by the government in its filing. This includes that the order prevents the president from exercising lawful authority. The appeals court stated that the government can file any additional documents supporting its position before the end of Thursday. The court's ruling on Monday marked the first instance since Trump's return to office in January that it had found the administration had violated a court order blocking a part of the Republican President's agenda. The Justice Department stated that U.S. district judge John McConnell improperly tried to take power away from Trump. Trump's authority to direct agencies in a manner consistent with his policies preferences is "well-established." The Justice Department's lawyers wrote: "This situation cannot continue for another day." A stay is warranted pending an appeal. A group of Democratic State Attorneys General argued, however, that if McConnell’s order were paused Trump would "be immediately free to resume his sweeping and illegal policies," harming those who depend on federal funding. Trump, Elon Musk and other members of his administration have all been critical of judges who have blocked important pieces of the President's agenda. In some cases, they have argued that judges do not have the authority to interfere with the president's power. Trump tweeted on Tuesday, "certain activists and highly-political judges want us slow down or stop" the administration's efforts at eliminating federal government waste. Musk, the richest person in the world, posted on Twitter on Tuesday that "democracy is being destroyed in America by judicial coup" after calling for impeachment of the judge in New York, who had barred his Department of Government Efficiency access to Treasury Department systems. These comments have raised concerns over whether the Trump Administration would adhere to court rulings. In a Monday statement, the American Bar Association expressed concern about "widespread affronts against the rule of law" under Trump. McConnell's lawsuit was brought by Democratic Attorneys General from 22 states and District of Columbia. They sued after the White House Office of Management and Budget released a memo that announced a spending freeze that involved trillions of dollars. OMB later retracted that memo. McConnell, however, had determined that a temporary injunction was still needed because evidence showed that the funding freeze was still in place and OMB's withdrawal of the memo was "in name-only." This is just one of many lawsuits where Democratic-led States, civil rights organizations and progressive advocacy groups have obtained court orders to block for the time being Trump's attempts to reduce the size and spending of the federal government and crackdown on immigration. The Democratic State Attorneys General on Friday urged McConnell, to enforce his funding freezing order. They said that the administration took the position that they could still withhold millions of dollars in funding for infrastructure and the environment under the Inflation Reduction Act and Infrastructure Improvement and Jobs Act. McConnell, a former president Barack Obama appointee, said his order on federal funding was "clear, unambiguous," and prohibited any categorical freezes or pauses. (Reporting and editing by Rod Nickel, Alexia Garamfalvi, and David Gregorio; Boston)
US Gulf refiners paying premium prices for Trinidad's Molo crude
Heritage Petroleum's CEO, who is the state-owned oil company of Trinidad and Tobago, stated on Tuesday that some U.S. Gulf Coast refining companies have paid recent prices above the Brent crude benchmark price for Trinidad and Tobago Molo heavy sour Crude.
Some U.S. refineries have been forced to pay higher prices to obtain other grades due to the lower availability of popular Latin American heavy grades, such as regional benchmark Maya, from Mexico, and Merey, from Venezuela. This is in part because of prolonged production cuts by OPEC+.
Trinidad and Tobago has been a marginal crude oil supplier to the Gulf Coast but its exports have increased in recent months. According to the Energy Information Administration, the U.S. imports Trinidadian crude at a rate of 44,000 barrels a day last year, compared with 36,000 barrels bpd by 2023.
Erik Keskula, Heritage CEO, said on the sidelines Trinidad's Energy Conference that "we sometimes trade at a slight price premium to Brent because the crude mix we have is quite high in demand in the Gulf Coast region of the U.S."
Keskula stated that Heritage will continue to market cargoes to various U.S. Gulf Coast Refineries in order to promote competition and firm prices in this region.
(source: Reuters)