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Brazil's Lula will meet with the agency to discuss Petrobras' bid for drilling near the mouth of Amazon River
He told a local station that he would meet with Ibama, the Brazilian environmental agency, this week or next to discuss Petrobras’ bid to drill near the mouth the Amazon River. Lula, who has defended Petrobras, the state-owned company that is exploring the region, stated in the interview that Obama was a government agency "that seems to be working against the government" and escalated recent criticisms against the regulator. The meeting did not lead to any final decisions on whether Petrobras could drill in this environmentally sensitive area. Ibama, in May 2023 denied Petrobras’ request for an offshore oil drilling license for Foz do Amazonas off the coast Amapa state. The reason given was environmental concerns. Ibama has yet to make a final decision on the appeal filed by Petrobras. Union Ascema which represents federal environmental workers expressed concern about Lula's comments, adding that Ibama made his decisions based on technical, scientific, and legal criteria. Ibama didn't immediately respond to a comment request. Rodrigo Agostinho told the newspaper O Globo he viewed political pressure as "normal." Lula made his remarks after a meeting with Davi alcolumbre, newly-sworn in president of the Brazilian Senate and a staunch defender of oil drilling in Amapa. Brazil's most exciting oil frontier is the Equatorial margin at the northern end. It shares geology with Guyana, a nearby country where Exxon Mobil has developed huge fields. Petrobras has been resisted by local Indigenous communities as well as federal prosecutors in its attempt to drill in the area. Sylvia dos Anjos was Petrobras director of exploration, production and development. She said last month that she expected Ibama to approve the firm in the first quarter this year. (Reporting and writing by Fernando Cardoso, Eduardo Simoes and Fabio Teixeira. Editing by Angus MacSwan, Les Adler and Angus MacSwan)
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Johnson, the US House Speaker, believes that White House is considering exemptions from reciprocal tariffs
Mike Johnson, Republican Speaker of the U.S. House of Representatives, said Wednesday that he believed President Donald Trump was considering exemptions from reciprocal tariffs for industries such as automobiles and pharmaceuticals. Sources briefed on discussions say that Trump informed Republicans at a White House gathering last week that he is considering four exemptions from the reciprocal tariffs. These include imported automobiles and pharmaceuticals. Johnson, in a short interview, said: "I believe the White House has a few categories which would be treated differently. I would expect that those two would also be included." "But I'm unsure." "You have to wait and ask the White House." The White House didn't immediately respond to an inquiry for comment. Trump's advisers were busy on Wednesday preparing plans for the reciprocal duties that the U.S. President has promised to impose against every country which imposes tariffs on U.S. imported goods. This increased fears of an expanding global trade war, and the threat to accelerate inflation. It would be a nuanced way to deploy tariffs, as opposed to the sweeping tariffs that Trump has repeatedly threatened. (Reporting by Jarrett Renshaw, David Morgan and Scott Malone; Editing by Scott Malone).
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Chevron will lay off between 15% and 20% of its global workforce
The U.S.-based oil company announced on Wednesday that it will reduce its workforce globally by 15% to 20% between 2026 and 2028 in order to reduce costs and streamline its operations. Chevron and Exxon Mobil are locked in a legal battle over the planned acquisition of Hess Oil, which is a cornerstone to its plans to increase oil production. The company's refining division, which has reported a fourth-quarter loss for the first since 2020, is also struggling with low margins. The company said that it aims to save $3 billion through 2026 by leveraging technology, selling assets and changing the way and where work is done. Chevron will employ 40,212 employees across all of its operations by the end 2023. An 8% layoff would represent 20% of the total workforce. In afternoon trading, shares of Chevron fell 0.7%. Sources familiar with the situation say that the company has told its employees that they can opt for buyouts as early as April or May. Source: Chevron is planning to reorganize and announce its new organizational chart for leadership in the next couple of weeks. Mark Nelson, Chevron's vice chairman, said in a press release that the company is taking steps to simplify its organizational structure, execute more quickly and effectively, and position itself for a stronger competitiveness over time. "We will not take this decision lightly, and we will support our staff through the transition."
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Johnson, the US House Speaker, believes that White House is considering exemptions from reciprocal tariffs
Mike Johnson, Republican Speaker of the U.S. House of Representatives, said Wednesday that he believed President Donald Trump was considering exemptions from reciprocal tariffs for industries such as automobiles and pharmaceuticals. Sources briefed on discussions say that Trump informed Republicans at a White House gathering last week he was considering four exceptions from the reciprocal tariffs. These included imported automobiles and the pharmaceutical industry. Johnson, in a short interview, said: "I believe the White House has a few categories which would be treated differently. I would expect that those two categories would be included." "But I'm unsure." "You have to wait and ask the White House." The White House didn't immediately respond to an inquiry for comment. Trump's advisers were busy on Wednesday preparing plans for the reciprocal duties that the U.S. President has promised to impose against every country which imposes tariffs on U.S. imported goods. This was a move to ease fears of an expanding global trade war, and to prevent inflation from accelerating. It would be a nuanced way to deploy tariffs, as opposed to the sweeping tariffs that Trump has repeatedly threatened. (Reporting by Jarrett Renshaw, David Morgan and Scott Malone; Editing by Scott Malone).
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Finland's first green hydrogen plant starts commercial production
The Finnish company P2X Solutions announced on Wednesday that it has begun commercial production of green hydrogen at its facility, which is a first-of-its-kind in Finland. It's also one of the very first in Europe. Several European companies have cancelled or put on hold their green hydrogen project due to rising costs and regulatory obstacles, among others. Herkko plit, chief executive of P2X Solutions, said: "We are one of the first companies in Europe to begin production at this scale." P2X is majority owned by Swiss energy group Alpiq, since last year. Its new production plant, located in Harjavalta (Western Finland), has a capacity of 20 MW. A methanation unit will be added at a later date. It produces hydrogen using renewable electricity such as the wind power, which is readily available in Finland. Plit reported that the facility had received a 26 million euro investment grant by the Finnish Ministry for Economic Affairs and Employment, as well as 10 million euro in capital loans from the Finnish Climate Fund. Plit stated that the investment decision was made before the Russian invasion of Ukraine, in 2022. This caused inflation to rise and the demand for fossil fuels again to increase, thereby limiting the market development of clean fuels such as green hydrogen. He said that the company's strategy was to scale up while keeping in mind market and technology risks. It is easier to find customers for a small facility and to increase production slowly in a changed environment. The company plans to build another two similar facilities with capacities of 40 MW each and 100 MW respectively in Finland. Plit stated that regulatory restrictions due to come into effect in the near future for air and maritime traffic emissions, as well industrial production, would mean that demand will pick up within several years. Plit suggested that Europe should see the order of Donald Trump, the new U.S. president, to pause the Inflation Reduction Act funds (IRA) for clean technologies as an "opportunity". "I also view this as an opportunity to (...) improve Europe's competitiveness which was perhaps not as strong at the time the IRA was attracting investment to the United States."
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US manufacturers are facing increasing trade tensions
Austin Ramirez, a Wisconsin-based businessman, had planned to build a factory in Mexico until very recently as part of the company's global strategy to shift production away from China and expand globally. The CEO of Husco said that Mexico made sense six months earlier. Husco produces hydraulic components for automotive and off-road vehicles, such as bulldozers. Now, it's not as bad. Husco, like many other U.S. manufacturing companies, faces an increasing list of trade policies that are being implemented by the Trump administration. These policies have disrupted investment plans and slowed the growth of the U.S. manufacturing industry. Many producers were shocked by the threat of tariffs on Mexico, which is the biggest U.S. trading partner for goods. Trump's campaign made the theme of boosting manufacturing his main focus, promising tariffs and less regulation. This stance won support from industrialized regions and swing states such as Wisconsin. Now that these policies are in place, and include moves this week to impose additional 25% tariffs for all imports, steel and aluminum included, the true cost is also becoming more apparent. Tariffs on metals will, for example, help domestic mills who produce them, but result in higher prices for a much larger network of businesses like Husco which use these raw materials. The threat of trade conflicts has led to a growing level of uncertainty about how companies should structure their global supply chain. Nick Pinchuk of Snap-On Toolmaker, Kenosha (Wisconsin), told investors that putting the election "in the rear-view mirror" would reduce the uncertainty among customers and boost the business for the coming year. He said that it is hard for many customers, including blue-collar workers, to not feel the "macro uncertainties" caused by "ongoing conflicts, immigration disputes, lingering inflation." The Federal Reserve's aggressive tightening of monetary policy between March 2022 to July 2023 in order to curb inflation has had a major impact on manufacturing, which represents 10.3% the economy. The factory sector is not showing any signs of strong growth, despite the fact that the central bank began cutting rates in September last year. The U.S. manufacturing sector expanded in January, the first time it had done so in over two years. However, the threat of tariffs is causing economists to question whether this rebound can last. Some parts of the manufacturing industry are doing well, thanks to orders that were overflowing from the pandemic boom. Emerson, an engineering solutions provider based in St. Louis, announced last week that its first-quarter profit exceeded estimates, thanks to a resilient demand for its valves-and-regulators unit. Lal Karsanbhai, CEO of the company, told investors on a conference call that he expects significant growth in orders in the second half. Even they are concerned about tariffs. The company stated that it would be ready to increase prices and add surcharges in order to protect profits, if for example new tariffs were imposed on Mexico. David MacGregor is the senior analyst and president at Longbow Research, based in Cleveland. He said that, "until a couple of weeks ago", he believed U.S. manufacturers were preparing for a good year in 2025. He noted that "most of these companies are pretty busy with their order backlog." MacGregor says he sees that more companies are "taping on the brakes." MacGregor said he noticed in the recent wave of earnings reports that consumers were not spending as much on large discretionary items like motorcycles. Harley-Davidson, a Milwaukee-based motorcycle manufacturer, has forecast that its profits and revenues will be flat or down by 5 percent in 2025 as consumers are hesitant to make large-ticket purchases. The demand for high-priced toy purchases, which boomed in the lockdown days, has dropped. Sticky inflation and high rates of interest have also forced consumers to spend more on necessities. John Healy is a managing director of Northcoast Research, located in Cleveland. He and other analysts expect consumers to be more confident in their spending habits in the months to come. "But it hasn't yet materialized in retail," he said. He noted that, while the interest rates set by Fed have decreased, consumer borrowing costs are only marginally lower. Ramirez, the CEO of Husco in Waukesha (Wisconsin), said that his business is still robust, and he wants to continue with expansion plans originally planned for Mexico but not the United States. He said that building in the U.S. was not an option because the products to be manufactured in the new facility have a high level of labor. He's considering India or another country with lower costs. Ramirez says that recent weeks have demonstrated that tariffs can hit anywhere. "We've already seen how quickly things can change," said he, "so making a decision is really difficult." (Reporting and editing by Daniel Burns, Claudia Parsons, and Timothy Aeppel)
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Brazil suggests steel quotas and calls for dialogue on trade with the US
Brazil's Vice-President Geraldo Alckmin called on Wednesday for "caution", and said that the South American nation would seek dialogue after President Donald Trump decided to impose 25% tariffs on steel and aluminium imports. Alckmin told reporters in Brasilia that Brazil is open to dialogue, and will reach out to Trump's administration. He suggested that quotas might be an alternative. Alckmin said that the U.S. trades with Brazil in a surplus, which means that the country's biggest economy is "not the issue". Trump, who was sworn in last month to his second term non-consecutive, is the first target. Steel and Aluminum Tariffs will be imposed in 2018 as a result of a national security law from the Cold War. He later exempted several countries, including Canada and Australia, as well as Brazil, South Korea, and Argentina, from duty-free quotas based on pretariff volumes. In the past, quotas would be set when tariffs increased. This is a clever mechanism," said Alckmin who is also the Minister of Development, Industry and Trade for President Luiz inacio Lula da S Silva. Since 2008, the United States has had a surplus in bilateral trade with Brazil. This surplus reached 253 million dollars last year. Brazilian Steelmakers Lobby Group Aco Brasil said on Tuesday that it was surprised at Trump's tariffs, and that the measure would not be beneficial to either country.
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Trudeau: Tariffs on Canadian aluminum and steel will cause job losses in the US
Justin Trudeau, Canada's Prime Minister, said that if the United States imposes a tariff on Canadian imports of steel and aluminum, it will result in some Americans losing their jobs, and U.S. economic growth will be affected. Trudeau reiterated to reporters in Brussels that Canada will respond if necessary with countermeasures. Donald Trump, the president of the United States, has threatened to impose tariffs on Canadian imports as well as steel and aluminum. Trump imposed tariffs on Canadian aluminum and steel in 2018, when he was still president. The United States and Canada were negotiating a new continental trade agreement. Trudeau claimed that the measures had cost 75,000 U.S. workers their jobs. He said: "We're highlighting that significant job losses occurred in the United States when they introduced tariffs the last time... this will actually compromise the growth and prosperity of the United States." Trump claims that the measures will help struggling industries in the United States. Canada is the largest source of aluminum imports in the U.S. Imports to Canada from 2024 reached 3.2 million tonnes last year. This is twice as much as the combined amount of the other nine countries. Quebec is the main source of Canadian aluminum. On Wednesday, Premier Francois Legault said that Canada should consider export tariffs for products such as aluminum "where there is a real need". Dominic LeBlanc said that Canada will not act until they see what the U.S. administration does. He told reporters that "what the Americans have said privately to us and what they've said publicly is we have a few weeks to work together." (Reporting and editing by David Ljunggren, Promit Mukherjee, and Peter Graff).
US regulator restores leverage for companies to bypass shareholder votes
The top U.S. Securities regulator revised its guidance on Wednesday, giving companies more power to bypass shareholder resolutions presented for annual meetings. This reverses a 2021 change and is seen as a major blow to activists who are pressing companies to address environmental, social, or governance issues.
In recent years, such resolutions have been the focal point of many corporate gatherings as investors became more interested in issues like climate change and workforce diversity. Stock issuers, as well as some Republican politicians, have criticized the trend. They see it a distraction.
Mark Uyeda is one of the critics. He was appointed acting chair by President Trump last month at the U.S. Securities and Exchange Commission.
According to a legal notice on the SEC's website, it will no longer focus on a broad social impact when deciding whether to allow corporations to bypass voting on shareholder resolutions.
New guidance gives companies more leeway to claim that proposals are micromanaging their operations or skipping votes.
Sanford Lewis is an attorney who represents activist shareholders. He said that the new language "gives companies immense latitude to claim a proposal micromanages, if the proposal requests specifics from the company."
(source: Reuters)