Latest News
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What is in the Republican health and tax plan and what's not?
Republicans in Congress released the first drafts of a sweeping package to reduce taxes and spend less, which would satisfy President Donald Trump’s call to do so. However, many details need to be worked out. Here's a summary on what they've proposed so far and what has been left out. Budget estimates for the next ten years are provided by both the Joint Committee on Taxation (JCT) and the Congressional Budget Office. What's in the Bottle? Permanently extends the lower tax rates that Trump's Tax Cuts and Jobs Act of 2017 will expire in 2025. Increases the standard deduction from $1,000 to $1500 by 2029. Increased alternative minimum tax, and enhanced deductions for "pass-through businesses" such as sole proprietorships. The Child Tax Credit will be increased to $2,500, from $1,000, until 2029. It will then remain at $2,000, indexes to inflation. Raising the exemption amount for estate taxes from $14 to $15 Million Tax breaks extended to multinational corporations Total cost: $4.9 trillion What's not included? Not all aspects of the plan have been finalized, but the initial proposals don't include Trump's proposal to increase the top rate for income taxes on Americans with the highest earnings, or deductions for local and state taxes, nor do they address Trump's promises made during his campaign to eliminate taxes on tipping, overtime, and Social Security benefits. MEDICAID What's in the Bottle? Adults who are able to work or volunteer, but do not have dependents must spend at least 80 hours per month in school or on the job. Verification efforts are boosted to ensure that participants and providers of healthcare services are eligible for Medicaid. Blocks regulations which make it easier for people to enroll. The program excludes non-citizens and penalizes the states who use their own money to cover illegal immigrants. The regulations that require minimum staffing in nursing homes and long-term care facilities have been blocked. Funding for gender-transition therapies for minors is prohibited. Prohibit payments to large providers such as Planned Parenthood who specialize in birth control and reproductive health services. Limit state taxes on providers used to raise federal contribution. What's not included Reductions in payments to states who expanded eligibility under Affordable Care Act. Changes in the way that the federal government assists states to pay for the program. Total savings: $715 billion CBO estimates that the changes will reduce Medicaid enrollment by at least 8,6 million people in 10 years. Medicaid covers approximately 71 million individuals. ENERGY & ENVIRONMENT COMMUNICATIONS Cancels funding of green-energy grant programmes in the 2022 Inflation Reduction Act. This includes vehicle manufacturing, home energy upgrades, electricity transmission and wind power. Encourages pipelines, exports of natural gas and exploration. Rejecting grant programs for electric heavy-duty vehicle purchases Rejecting grants for reducing air pollution and greenhouse gas emissions. Rejecting fuel efficiency standards for cars and pickup trucks More electromagnetic spectrum bands available for communication. The law prohibits the states from regulating artificial Intelligence. Total Savings: $197 Billion (Reporting and Editing by Andy Sullivan, Scott Malone, Bill Berkrot).
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Source: Blackstone is in negotiations to purchase utility TXNM
A person familiar with this matter told me on Monday that the infrastructure investing arm of asset management Blackstone has been in discussions to purchase TXNM Energy which is a utility focused on New Mexico and Texas. Sources say that discussions between Blackstone Infrastructure Partners (BIP) and TXNM are currently underway about the structure of an agreement. However, they cautioned that the situation is fluid and a deal was not guaranteed. Source spoke under anonymity in order to discuss confidential discussions. Bloomberg News reported earlier Monday that the two parties are in negotiations for an agreement which could be reached within the next few weeks. This was based on the testimony of people who were familiar with the situation. TXNM declined to comment on a request for comments. Blackstone declined comment. TXNM Energy, based in Albuquerque in New Mexico, provides electricity to more than 800,000 homes in New Mexico and Texas. Avangrid and the company at that time, PNM Resources had agreed to sell their assets in 2020. The two parties walked away from their agreement more than three year after it was first made due to regulatory opposition. (Reporting from David French in New York, Editing by Nia William)
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Germany proposes a grid fee reform to better suit renewables
The German network regulator started Monday a formal procedure to rethink electricity grid fees, with the goal of a system that is better suited for renewable energy. The use of the electricity network accounts for around 20% in Germany's consumer bills. This contributes to the high energy prices in Europe that hurt the economy and industry. Reform is needed to increase revenue and include more stakeholders in the costs of network expansion. Industry experts claim that the current system lacks incentives to encourage flexible users to reduce peak demands and does not guide energy infrastructure planning through clear price signals. In a paper released by the regulator Monday, it outlined a number of proposals. One was to make renewable energy producers pay for the cost of grid maintenance, which is currently borne solely by consumers through their electricity bills. The German association of local utilities (VKU) said that the proposed changes could result in a better cost distribution and reduce expensive grid expansion. However, it criticised the proposals to create a uniform grid tariff for distribution system operators across the country and warned against the overcomplicated design of the dynamic fee system. In a press release, VKU's Managing Director Ingbert Liebeing stated that it was important for the reform proposals to be technologically open and practical. They should also be further developed in order to ensure supply security, affordability and sustainability. A flat rate or surcharge could be charged based on the size and type of connection of a customer, rather than how much electricity they use. The new system uses so-called "dynamic pricing" to determine grid fees based on how busy the network actually is. It hopes to encourage consumers to use their energy more efficiently. The network agency may establish special rules for better integrating batteries and storage into the system. It gave the public and other stakeholders until June 30 to provide comments on the paper. The new German government also plans to cut the power tax to Europe's minimum, and to halve the transmission network fees with the goal of capping the prices permanently.
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US House Budget Bill seeks to spend more than $1.5 Billion for Strategic Petroleum Reserve
The U.S. House Committee released a proposed budget that included more than $1.5billion to replenish and maintain Strategic Petroleum Reserve. It also cancelled a sale mandated by Congress, after huge sales in 2022. The House Energy and Commerce Committee's proposal, released late Sunday, includes $1.32 billion for oil purchases to replenish the SPR - the world's biggest emergency crude stockpile - and $218 millions for the maintenance of the facility. In March, U.S. Energy Sec. Chris Wright estimated that it would require $20 billion over years to achieve President Donald Trump's aim of filling up the SPR. This would benefit domestic energy producers in spite of relatively low oil price. The SPR has a capacity of 727 million barrels, and it currently stores about 399 millions barrels. The House Committee is controlled by Trump and his fellow Republicans. This move is part a larger proposal to cut grant and loan funding in the landmark climate law of former president Joe Biden, the Inflation Reduction Act. Biden, a Democrat from New York, sold a record number of barrels in 2022, after Russia invaded Ukraine. This brought the SPR to its lowest point in 40 years. The House measure is up for a vote in a committee on Tuesday. It also repeals the sale mandated by Congress of 7 million barrels out of SPR until fiscal year 2027. The Biden administration worked with Congress in order to cancel the congressionally mandated sale to keep SPR levels from dropping. The Department of Energy published a proposal on Monday in the Federal Register that would allow government to purchase oil for SPR at a market-based index price instead of a set price. This means the price of oil can fluctuate with the market. The Biden administration adopted a rule of fixed prices, arguing it was helpful in arranging fast purchases for the Reserve. In its new proposed rule, the DOE stated that fixed-price agreements have "only served as a means to create unnecessary confusion in the industry." The new rule is set to take effect within 60 days, unless "significant negative comments" are received. (Reporting and editing by Mark Porter; Timothy Gardner)
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Codelco, Rio Tinto and other copper mining companies are stepping up their efforts to develop a copper "mining district" in Chile
Codelco, a Chilean copper miner, and Rio Tinto, a global mining company will work together to create a "mining district" for copper around their Nuevo Cobre joint project in northern Chile's Atacama Region. Codelco released a statement stating that the new agreement creates a joint comittee and shares funding for initial studies. The 12-month period can be extended. This comes after both companies established in 2023 the Nuevo Cobre Project to conduct exploration in the region, a joint-venture in which Codelco holds about 43% and Rio Tinto around 58%. Codelco, world's largest copper producer, pointed out that Nuevo Cobre sits next to its San Antonio property. Codelco stated that "the geological potential in the Atacama region as a whole and the proximity of both mining projects presents an opportunity to create an entire mining district." The two companies are aiming to "maximize" the value of the area through various infrastructures, it said. In a statement from Codelco, Rio Tinto CEO Jakob Stausholm stated that the partnership would "make the most of our complementary expertise and capabilities" to drive exploration in a manner that benefits the Atacama Region. (Reporting and editing by Kylie Madry, Daina Beth Solon and Fabian Cambero)
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US House Budget Bill seeks to spend more than $1.5 Billion for Strategic Petroleum Reserve
The U.S. House Committee released a proposed budget that included more than $1.5billion to replenish and maintain Strategic Petroleum Reserve. It also cancelled a sale mandated by Congress, after huge sales in 2022. The House Energy and Commerce Committee's measure, released late Sunday, includes $1.32 billion for the purchase of oil to replenish the SPR - the world's biggest emergency crude stockpile - and $218 millions for the maintenance of the facility. In March, U.S. Energy Sec. Chris Wright estimated that it would require $20 billion over years to achieve President Donald Trump's aim of filling up the SPR. This would benefit domestic energy producers in spite of relatively low oil costs. The SPR has a capacity of 727 million barrels, and it currently stores about 399 millions barrels. The House Committee is controlled by Trump and his fellow Republicans. This move is part of an overall proposal to reduce grants and loan funding in the landmark climate law passed by former president Joe Biden, Inflation Reduction Act. Biden, a Democrat from New York, sold a record number of barrels in 2022, after Russia invaded Ukraine. This brought the SPR to its lowest point in 40 years. The House measure is up for a vote in a committee on Tuesday. It also repeals the sale mandated by Congress of 7 million barrels out of SPR until fiscal year 2027. The Biden administration worked with Congress in order to cancel the congressionally mandated sale to keep SPR levels from dropping. (Reporting and editing by Mark Porter; Timothy Gardner)
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Sources: Attacks on Burkina army bases and villages kill dozens
Sources said that an attack on a Burkina Faso military base killed several soldiers while another assault in the southern part of the country left dozens dead civilians. This underscored the spiraling insecurity within the junta led country. Two security sources confirmed that the army base in Djibo was attacked on Sunday morning. A police station and a market were also targeted. Sources who spoke anonymously for fear of reprisals by the government said that soldiers, pro-government militiamen, and civilians had been killed, although a complete toll wasn't available until Monday. Many of our men, both soldiers and (militia fighters) have fallen. Weapons were also taken. "There were also many deaths on the population side," said one source. According to an army report from October 2022, the Djibo Base has been attacked multiple times. The latest attack was not immediately claimed by anyone. The area is close to where Al Qaeda affiliate JNIM operate. Ibrahim Traore, who took power through a coup in the year 2022, promised to reverse the tide of a jihadist movement that had spread throughout the region ever since it began in Mali thirteen years ago. In many parts of the country, militant attacks continue. According to Segda Bila of the committee responsible for burying the deceased, at least 58 people were killed in three villages of Koulpelogo province, located near the border of Togo. Burkina Faso’s military government is under fire from rights groups for the measures taken to protect national security. Human Rights Watch stated on Monday that the army "participated" in the March massacre of ethnic Fulani civilians by pro-government militias in Boucle du Mouhoun, western Boucle du Mouhoun. In March, a government spokesperson dismissed online images purporting that those killings were a "disinformation" campaign of "false info aimed at undermining the social cohesion." Monday, the government did not respond immediately to a comment request. Reporting by Burkina Faso Newsroom; Writing and editing by Sharon Singleton
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Terna and IPTO Sign 2-Billion-Euro Deal on Italy-Greece Power Connection
Italian power grid operator Terna, and its Greek counterpart IPTO have signed a deal for a new underwater electricity interconnector that will connect Italy with Greece. The agreement is worth almost 2 billion euros. The deal was announced following a summit hosted by Italian Prime Minister Giorgia Melanie and her Greek counterpart KyriakosMitsotakis in Rome's Villa Doria Pamphili (17th century), which also included ministers from both nations. Meloni said that "our geographical location in the Mediterranean has given us an advantage in terms of interconnections, since it is the shortest path between the Atlantic Ocean and the Indo-Pacific." After a massive blackout that hit Spain and Portugal in the last month, nations began to look for ways to diversify their routes and supply. Terna announced that the new high-voltage cable, GRITA 2, would have a maximum transmission capacity of 1,000 MW, and will span approximately 300 km, including 240 km subsea cables at depths up to 1,000 meters. The statement added that the two companies will invest 1.9 billion dollars in the project. The new infrastructure, which will begin on the Italian side in the south-eastern Puglia area, will work alongside the existing interconnection that has been operating since 2002 and with a capacity of 500 MW. Mitsotakis said that a deal had been struck between Italy's Ferrovie dello Stato and Athens transport ministry to invest in improving railway safety in Greece. A train crash in Greece in 2023 killed 57 people. The Greek leader said that the deal was about "kickstarting a new relationship...which has been tested under the shadow of an enormous tragedy". The Hellenic Train in Greece is a subsidiary of Italy's FS. $1 = 0.8990 euros (Reporting and editing by Angelo Amante, Angeliki Koutantou)
London Stocks Gain after US-China Agreement on Tariff Reductions
The main British indexes rose along with global markets on Monday after the United States agreed to temporarily lower tariffs. This eased investor concerns over the trade war between two of the world's largest economies.
By 1021 GMT the blue-chip FTSE 100 index was up 0.35% while the domestically focused Midcap Index advanced 1%.
After talks in Geneva, both countries announced that the U.S. would reduce its extra tariffs on Chinese imports from 145% to 30% and Chinese duties will drop to 10%. The new measures will be in effect for 90 days.
The Geneva meetings marked the first face to face interactions between senior U.S. economic officials and Chinese officials since U.S. president Donald Trump began a global tariff campaign, imposing especially heavy duties on China.
Base metal prices increased following the news, and industrial metal miners led both the FTSE 100 & FTSE 250 gains.
Glencore, Antofagasta, and Anglo American all rose by nearly 7%.
Ferrexpo, a Ukrainian-focused miner, jumped 11 percent, topping midcap performers after Ukrainian President Volodymyr Zelenskiy declared his readiness to meet with Russian counterpart Vladimir Putin for talks in Turkey on Thursday.
Luxury goods producers also rose, with Burberry Group and Watches of Switzerland Group increasing by 6.7% and 3.0% respectively.
The healthcare subindex fell 2.4% on the other hand after Trump announced that he would issue an executive order to reduce prescription prices to levels paid in high-income countries. He estimated this amount at between 30% and 80%.
Other developments include the British Foreign Minister hosting European counterparts on Monday in order to discuss support for Ukraine as well as greater regional defense cooperation, ahead of Prime Minister Keir starmer's meeting with European Union leaders.
Separately released economic surveys on Monday indicate a growing pessimism by British employers about hiring plans following recent tax increases and the surging uncertainty of the global economy. This is in line with Bank of England predictions of a weakening labor market. (Reporting by Ragini Mathur in Bengaluru; Editing by Shailesh Kuber)
(source: Reuters)