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100 Days of DOGE: Lots of chaos and not much efficiency
The Social Security Administration is sending lawyers, statisticians, and other senior agency officials from its Baltimore headquarters to the regional offices in order to replace veteran claim processors that have either been fired by the Trump administration or bought out. Two people who are familiar with the situation say that most of the new employees don't have the skills to perform the tasks, which will lead to longer waiting times for the disabled and elderly Americans, who depend on the benefits. In an email, a SSA official responded that reassigned staff "have vast knowledge of our programs and services." Since President Donald Trump sent remote workers to overcrowded offices, the Internal Revenue Service's internet is so patchy that employees are using personal hotspots to access the web, which crashes their computers during tax season. IRS officials did not respond when asked for a comment. The IRS did not respond to a request for comment. Jessica Riedl is a fellow of the Manhattan Institute. A fiscally conservative think-tank that advocates streamlining government, she said, "DOGE does not seem like a serious undertaking." She believes that DOGE is only saving $5 billion and will cost more in the end. These examples, which were previously unknown, span 14 government agencies. They were revealed in interviews conducted with 30 federal workers and experts on governance. These accounts don't provide a complete picture of Musk's Department of Government Efficiency's project to reduce the size and cost of the federal bureaucracy. However, they reveal the collateral damage caused by DOGE's attempts to make the sprawling bureaucracy of the federal government more efficient. Harrison Fields, White House spokesperson, responded to questions regarding the impact of DOGE cuts on government efficiency in a press release. Fields stated that Musk's group "has already modernized and improved government technology, prevented fraudulent activity, streamlined processes, identified billions in savings for American tax payers." Fields didn't give any examples of how the government's computer systems and workforce have improved. SAVE BILLIONS Musk confirmed Tuesday that he would step down from his position as DOGE's leader next month. The end of May was the deadline for his 130-day special government employee mandate. He said that he would continue to work with Trump on the overhaul of government but not full time. The future of DOGE is in doubt because of his reduced role, but experts say that cost-cutting measures will continue. Musk and his lieutenants are yet to provide any concrete evidence of how the government will operate more efficiently due to the massive layoffs and the termination of government contracts. Dozens of government officials told us that DOGE teams have buried themselves into government agencies, and their computers systems are operated in secrecy. DOGE's website, which provides regular updates about the $160 billion it claims to have saved U.S. tax payers so far, is riddled with mistakes and corrections. The White House gave examples of cost-savings, including the discovery of $630 million worth of fraudulent loans by the Small Business Administration made to applicants aged over 115 but under 11 years old in 2020-2021. $382 million was fraudulently paid out by the Labor Department in unemployment benefits since 2020. I was not able to independently verify these claims. DOGE has not responded to any requests for comments. Musk told Fox News' Bretbaier that his team was careful in making cuts, admitted and fixed errors, and had discovered "astonishing amounts" of fraud and waste. You can't buy dry ice DOGE has announced that it has cancelled almost 500,000 government-issued credit cards in its efforts to reduce costs. The agency has also imposed a limit of $1 on some cards and centralized decision-making within certain agencies. This means that managers at some regional offices cannot buy basic supplies. It took a scientist a whole month to obtain authorization from the National Institute for Occupational Safety and Health to purchase $200 worth of dry ice for preserving urine samples. This is a purchase that would normally be made in a local grocery store. A colleague from another regional office, who had a government-issued credit card, paid for the dry air, but the cost was $100 more because the administration barred employees from purchasing. The Centers for Disease Control and Prevention (CDCP), which supervises NIOSH did not respond when asked for a comment. DOGE and White House also prohibited many agencies from contacting outside vendors, as they stopped thousands of federal contracts. A chemical analysis machine worth nearly half a million dollars at a CDC in Cincinnati has been sitting idle for months, because scientists cannot schedule training with the supplier to begin using the device, according to a source familiar with the situation. The CDC has not responded to a comment request. In the first week in March, the Social Security Administration's computer systems crashed ten times in four days. One IT worker said that because a quarter the agency's staff has quit or been terminated, it takes longer to bring the systems back online, which disrupts the processing of claims. Few would dispute that the SSA computer systems are outdated, frequently crash and in need of updating. Musk told Baier that the agency's computers are "failing" and "we're fix it." HUMANITARIAN AID CUT DOGE, since its creation on Trump's very first day as President, has largely closed down the U.S. Agency for International Development (USAID), which provides humanitarian aid to those in need around the globe, and canceled more than 80% of its programs. By September, almost all the employees of the agency will be terminated, and all its overseas offices will close. Some functions are being absorbed by the State Department. A tally shows that the overhaul of the government has led to the dismissal, resignation and early retirement of 260,000 civil service employees. In February, over 20,000 probationary employees (newly hired or recently reassigned workers) were terminated. After court rulings, they were reinstated. However, most were sent back home with full pay. After further court rulings, many are being fired once again. Trump and Musk both said that the U.S. Government is plagued by fraud and waste. Many civil servants, governance experts and others do not dispute that efficiencies could be made. However, they say that there are people within the federal bureaucracy who already try to save taxpayer dollars. DOGE has targeted some of these offices for cutbacks. Trump fired 17 inspectors in January. Their mission as government watchdogs included reducing fraud and waste. Christi Grimm was fired from her position as inspector general of the Department of Health and Human Services. She said she expected $14.5 billion in "cold, hard cash" to be recovered over the next three years through audits and fraud investigation. The DOGE eliminated 18F, one of only a few government units tasked with streamlining technology throughout the federal government. Waldo Jaquith who worked at 18F from 2016 to 2020 said that the team saved the Pentagon $500,000,000 in just one project lasting three days after noticing two departments doing the same unknowingly work. I was not able independently to verify this figure. Musk and his team have a very specific idea of how they want the government to function. Jaquith stated that when Musk's team discovered it, it was destroyed. Thomas Shedd, an appointee of Trump at the General Services Administration (GSA), in an email sent to staff members last month, called 18F "noncritical". (Reporting and editing by Ross Colvin, Suzanne Goldenberg, and Julie Steenhuysen; additional reporting by Alexandra Alper, Leah Douglas and Julie Steenhuysen)
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Georgieva: IMF will continue to support countries in climate change and stability while focusing on the IMF.
Kristalina Georgeieva, the Managing Director of the International Monetary Fund (IMF), said that it will remain "laser-focused" on preventing balance-of payments crises. It will also incorporate concerns raised by President Trump into its policies. Georgieva said at a press conference held during the IMF and World Bank spring meetings that representatives of the Fund’s 190 member countries would discuss the directives issued by U.S. Treasury Sec. Scott Bessent. Bessent also expressed his support for the multilateral crisis lending institution. Bessent called on the IMF and World Bank on Wednesday to focus on their core missions, macroeconomic stability, and development. He said they had become distracted by issues like climate change, inclusion, and gender, which have decreased their effectiveness. Bessent's prescriptions are in line with Trump's efforts to reverse Biden's policies regarding climate change and gender equality. They also include a call to expand the World Bank energy lending program to include fossil fuels and nuclear power. The Treasury chief who controls the majority U.S. shares in both institutions said Georgieva, and World Bank president Ajay Banaga, needed to earn Trump's administration's confidence by implementing policies that were "back to basics". Georgieva stated that climate change can impact macroeconomic policies in certain cases. People think we have climate scientists. We don't. She said that the IMF's job was not hers. Our job is to ask, "If you're Dominica, and a storm can wipe out 200% of GDP, what reasonable policies are put in place?" When asked whether the IMF will now reconsider its Resilience and Sustainability Trust Georgieva, who is the head of the IMF’s financing facility, said that this financing was "really small", compared to IMF’s total funding. She added that the IMF is also a membership-based organization and its members will ultimately decide its policies. She agreed that the Bretton Woods institutions should be cost-efficient. In real terms, adjusted for inflation, the IMF budget has not changed in the past 20 years. "I like to run a tight ship." Reporting by David Lawder, Andrea Shalal and Andrea Ricci; editing by Chizu Nimiyama and Andrea Ricci
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Launch of 'Revive Our Oceans' initiative to protect coastal waters
On Thursday, a new initiative led by British naturalist David Attenborough launched to help local communities benefit from efforts to save at least 30% of oceans around the world by the end decade. The initiative titled Revive Our Ocean is led by Dynamic Planet in conjunction with the National Geographic Society’s Pristine Seas program and will support local communities to create "marine protected zones" in coastal waters. The first focus will be on the overfishing problem and its impact on ocean climate in Britain, Portugal Greece, Turkey, Mexico and Indonesia. Enric Sala is the executive director of National Geographic Pristine Seas. He said, "The biggest enemy of fishing today is overfishing." Organisers of the initiative stated that creating marine protected areas will also bring economic benefits. They cited a study that showed that these areas improved fishing yields as well as boosted tourism. Kristin Rechberger is the founder of Revive Our Ocean. She said that marine protected areas are good for business. The MPA creation process has also been criticized for being too slow. They noted that more than 190,00 protected areas will be needed to achieve the "30 by 30-" goal - to protect 30% of oceans by 2030. Reviving marine life revitalizes local economies and community. Rechberger stated that it's high time the world recognized MPAs as the foundation of the blue economic. This week, countries are meeting in New York to discuss the implementation and financing of a global agreement reached in 2023 for ocean biodiversity protection. Once 60 governments have ratified the treaty, it will come into force. Only 21 countries have ratified the treaty despite more than 100 signing parties. There are more ratifications expected before the June 2025 United Nations Ocean Conference. Rebecca Hubbard is the director of High Seas Alliance - a coalition of environmental organizations. Environmental groups claim that the agreement must come into force this year in order for the world to reach its target. Only about 8% of the world's land - 29 million square kilometers - are protected. The United States, which was instrumental in the creation of the treaty but has not been present at this week's talks, is expected to reject the treaty. (Reporting and editing by Alison Williams; Reporting by David Stanway)
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What next as China approaches peak aluminum production? Andy Home
China's aluminum production is approaching its capacity limit. From just four millions metric tons of production in 2004, China's primary metal smelting industry is expected to reach 43 million tons by 2024 or 60% global output. The West has increasingly resisted the growing dominance that China is gaining in the global aluminum supply chain, first through trade complaints and antidumping duties, and then more recently with U.S. Tariffs. China's semi-fabricated aluminum exports, which increased by 19% last year to a record of 6.2 million tonnes, were not affected. Things are about to get better. Beijing's "Action Plan" on aluminium for 2025-2027 confirms that the cap will remain in place, and outlines a plan for what comes next. TOUCHING the ceiling According to the International Aluminium Institute, China's primary aluminum production increased by 2.6% on an annual basis in the first quarter 2025. The average annualised production was 44 million tonnes between January and March, only a million tones short of the cap of 45 million tons set in 2017. According to consultancy AZ Global, it is technically possible that the country's production could exceed the cap. The capacity of a smelter is measured by the amperage designed for the electrolysis process. However, "one of first tasks of any plant manager would be to increase output above the rate," the article states. The smelter can produce more than its capacity by increasing the amperage. AZ China estimates China's capacity utilisation at 98.2%. This leaves little room for collective amperage to increase. China's average annual growth rate of 4.0% over the past five years is beginning to slow. Going Green Chinese operators continue to build new smelters. However, the new capacity will have to be offset by closing older capacity. Beijing's policies in this sector focus on eliminating older, less-efficient capacity and making sure that newer smelters use renewable energy sources. Aluminium production is moving from coal-rich regions to new energy hubs such as Yunnan, with its hydropower and Inner Mongolia which has a massive wind and solar power potential. The goal is to produce more metals with low carbon content. According to the plan, renewable energy will account for 30 percent of national smelter electricity demand by 2027. Beijing wants to boost production by recycling scrap to reach a target of 15 million tons annually in 2027. Exports are reduced Already, another offset has kicked in. In December, the government eliminated tax rebates of 13% for exports of aluminum products. This was done to keep more metal on the domestic market. Exports have slowed down sharply since then, with volumes outbound falling by 11% on an annual basis in January and Febraury. Analysts at Macquarie Bank predict that exports will fall by 8% between 2025 and 2030. A more dramatic collapse is unlikely, as the world outside China relies heavily on its products for around 15% of the total demand. Most Western buyers are likely to accept at least a part of the cost increase. It is possible that Chinese aluminum exports have reached their peak. REPRIEVE FOR WESTERN GENERALISERS? Combining a slowdown in Chinese production growth with reduced exports opens up a window for the rest the world's primary aluminum producers. Nearly a million tonnes of smelting capacity in the United States is idle. The 25% tariffs on aluminum imports imposed by President Donald Trump are meant to encourage restarts. After the surge in power prices that followed Russia’s invasion of Ukraine, 2022, around half of Europe's primary smelting capacities are out of operation. Although the structural changes implemented by the largest producer in the world may provide a reprieve for such plants, restarting idled capacities is also a matter of aluminium and electricity prices. After years of low investment, there is renewed interest in greenfield smelters being built in the West. The government has provided $500 million to U.S. aluminum producer Century Aluminum for the launch of the first new smelter built in the United States since 1945. Rio Tinto is examining low-carbon smelter project in India and Finland. But the Chinese dominance will remain Due to the lack domestic expansion potential, Chinese producers also go overseas. Beijing's aluminum action plan, for example, calls for closer cooperation with nations rich in resources, such as Guinea. Chinalco, a Chinese company, is involved in a project that converts Guinea's bauxite into alumina. Shandong Nanshan Aluminium, which produces alumina in Indonesia, plans to expand their refining capability and add a smelter that can produce 260,000 tons per year. China has stopped building its own capacity, but it appears that they have no plans to loosen their grip on a material classified by the United States as well as the European Union as a vital raw material. These are the opinions of a columnist who writes for.
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Chairman of India's NMDC says that the company is exploring coal assets in Indonesia and Australia.
Amitava Mukherjee, chairman of the Indian miner NMDC, said that it is looking for coking coal assets in Indonesia and Australia. Coking coal is a key ingredient used to make iron ore and styrene. India, which is the second largest producer of crude iron and steel in the world, imports 85% of coking coal. More than half of Australia's coking-coal imports are accounted for by the country. Mukherjee stated that the company views this as an opportunity for business. The negotiations (for explorations) are at different stages. Due to confidentiality, he did not reveal the specifics of these discussions. NMDC, a state-owned company, is India's biggest iron ore mining company with four mines in operation across the country. Jayant Acharya, CEO of JSW Steel, had said earlier that day that his company purchases coking coal in Australia and the United States. SAIL, the state-owned steel company, also sources coking coal in countries like Mongolia. According to the commodity consultancy BigMint, coking coal is a volatile product because it dominates exports and weather conditions are unpredictable. Weather conditions will affect Australia's coking coal supply in 2023. Reporting by Neha arora in Mumbai and Manvi pant in Bengaluru. Editing by Mrigank dhaniwala, Shilpa Majumdar
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UniCredit invests in Generali to support Caltagirone
Three sources claim that UniCredit threw their weight behind Generali rebel investor Francesco Gaetano Caltagirone on Thursday, a move which could soften the government's opposition to a bid for Banco BPM. While Caltagirone lost the shareholder vote on Thursday to select a new Generali Board, Andrea Orcel has positioned UniCredit as a front that is supported by the government and conducts multiple battles within Italian finance. Generali's vote gave a win to Mediobanca as the top shareholder. It secured 10 board positions and a second term for Philippe Donnet, CEO. Caltagirone won only three seats. Caltagirone’s most important ally is the investment company Delfin. Delfin invests in UniCredit. Together, they own 27% of Mediobanca and 17% of Generali. Delfin and Caltagirone acquired recently also nearly 20% state-backed lender Monte dei Paschi di Siena. MPS has announced an offer to take over Mediobanca. This bid came after UniCredit's takeover of BPM in November. This scuttled government plans to merge BPM and MPS. Last week, the conservative government of Prime Minster Giorgia Melons slowed down UniCredit’s bid to acquire BPM by imposing conditions that UniCredit believes could be detrimental. BPM's bid begins on Monday. UniCredit has been in contact with the government to discuss the conditions. Credit Agricole, BPM's principal investor, has secured Rome’s blessing for an increase in its stake of close to 20%. Orcel's relationship with the previous Italian government was strained when he pulled out of a deal in 2021 to purchase MPS. He has not been able to repair his relationship with Meloni’s executive. Orcel, whose BPM bid was struggling, has built up a stake of 6.7% in Generali over the last few months. UniCredit was expected to abstain from the vote on Thursday. The stake had been widely viewed as a means to increase Orcel's bargaining strength in Italy's rapidly-moving M&A market. According to three sources close to the situation, Orcel did not support Caltagirone after the Wednesday board meeting where the conditions of the government for BPM was discussed. UniCredit refused to comment. One person said that the bank saw Generali as a potentially positive change. Generali is Italy's largest insurer and its most prestigious asset.
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US durable goods orders surge on aircraft bookings during March
In March, orders for durable U.S. manufactured products surged on the back of strong demand for aircraft. However, activity elsewhere was muted as businesses exercised caution in light of a bleak economic outlook due to tariffs. The Commerce Department's Census Bureau reported on Thursday that orders for durable goods, which include toasters and aircraft designed to last at least three years, increased by 9.2% in March after a slightly revised 0.9% increase in February. Economists surveyed by predicted durable goods orders would increase 2.0%, after an earlier reported 1.0% rise in February. China and the United States are involved in a trade dispute after President Donald Trump increased tariffs on Chinese imports up to 145%. This prompted retaliation by Beijing. Trump imposed an additional 10% tariff on all trading partners, and threatened to impose a 25% duty for imported auto parts. Other goods such as lumber, automobiles, steel, and aluminum have also been subject to a slew of tariffs. Trump sees the tariffs to be a way to generate revenue in order to pay for his tax cuts, and to revitalize a U.S. industry that has been declining. The domestic manufacturing industry is heavily dependent on imported raw materials, and economists warn that the tariffs will disrupt supply chains. Transport equipment orders increased by 27.0%. This was boosted 139.0% by an increase in commercial aircraft orders. Commercial aircraft orders are notoriously volatile. Boeing announced on its website that they had received 192 orders for aircraft in March. This is up from just 13 in February. China ordered this month that its airlines stop taking Boeing jets. Some airline CEOs said they were willing to defer plane delivery rather than pay duty, which could harm the plane maker's recovery after a devastating strike last year. Recently, two Boeing planes bound for China were returned. Boeing CEO Kelly Ortberg said, however, that on Wednesday, the company avoided further damage from tariffs, and that it could redirect jets towards other airlines who have "asked for additional aircraft." The non-defense capital goods order, which excludes aircraft and is closely watched as a proxy for the business's spending plans, rose 0.1% in march after a revised 0.3% decline in February. These core capital goods orders had been reported to have decreased by 0.2% in February. The shipment of capital goods has increased by 0.3%, after a 0.7% increase in the previous month. These shipments are used to calculate the equipment component of gross domestic product. The fourth-quarter decline in business investment in equipment was due to a decrease in the number of new purchases. The growth estimates for the quarter January-March are mostly below 0.5% annualized and the chances of a contraction is high. The fourth quarter saw the economy grow at a pace of 2.4%. Reporting by Lucia Mutikani, Editing by ChizuNomiyama
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Atlantic Lithium seeks to compromise with Ghana over terms of the maiden lithium project
Atlantic Lithium continues to negotiate with Ghana's Government in order to save its Ewoyaa Lithium project, said the company's Chief Keith Muller on Thursday. Falling prices for the crucial battery metal have cast a shadow over the viability of Ghana's first lithium mine. The Australian-based miner wants concessions regarding Ghana's new mining revenue structure, which includes 10% carried interest free for the state as well as a 13% special royalty on gross revenues from lithium production. Muller stated in a press release that, "despite the current lithium price headwinds, through collaboration and prudent fiscal measure, we are confident we can bring Ewoyaa into production and provide lasting value to all stakeholders." Lithium prices are down more than 80% since their peak in 2022, which puts pressure on new projects around the world. Ahmed-Salim Adam (General Manager of Atlantic Lithium) said in an interview separately that urgent revisions in the fiscal terms will help keep the project going. LITHIUM PRICE RECOVERY UNDERMINED Ghana, Africa's leading gold producer, has granted an Australian miner 15 years to build the mine before the end of 2024. The miner hopes to take advantage of the electric vehicle boom. According to Atlantic Lithium's estimates, the Ewoyaa Project, with its estimated resource of between 35-40 millions metric tons lithium-bearing ores, will become one of top 10 global producers of spodumene concentrates, creating a new source of supply outside of the dominant markets in the industry, such as Australia, Chile, and China. The U.S. is expected to import around 360,000 tonnes of lithium per year. The project's construction was halted due to a delay in ratification by the parliamentary body. In addition, the collapse of the lithium price has further complicated its viability, and the timeline for the development of the company. Analysts remain cautious despite a recent recovery in prices, driven by a normalization of global auto production. Tom Price, Panmure Liberum’s head of commodities said that while "EV-led growth is strong, it's still being overwhelmed by mine supply," noting the 25% tariff imposed by U.S. president Donald Trump. Price says that because West Africa is relatively new to the lithium market, investors prefer to remain in established markets during times of low prices. Muller said, "We are committed to working in partnership to ensure Ewoyaa is a flagship project both for the country as well as the region." Maxwell Akalaare Adombila reported; Veronica Brown, David Evans and David Evans edited.
Valero Energy announces first-quarter loss due to lower margins and impairment charges
Valero Energy announced a loss for the first quarter compared to a profit a year ago on Thursday. This was due to lower refining profits and approximately $1 billion of impairment charges related its West Coast assets.
According to data compiled and analyzed by LSEG, the refinery with the second largest capacity in America posted an adjusted profit per share of 89 cents, exceeding expectations of 42 cents.
Lane Riggs, CEO of Lane Riggs Oil Company, said that the quarter saw heavy maintenance throughout the refinery system as well as a "challenging environment" for the renewable diesel segment.
U.S. refineries undergo seasonal maintenance in the first quarter of each year to prepare for increased summer demand. However, this temporary maintenance limits revenue and utilization.
Valero’s renewable diesel segment operated by the Diamond Green Diesel joint-venture posted an operating loss $141 million. This is a reverse of the $190 millions in operating income reported one year ago.
Refining profits also fell, from $1.7 billion to $530 million.
Valero was the first major refiner this earnings season to announce results. The industry is bracing for the fallout of the ongoing U.S. China trade tensions. This could reduce demand for refined products like gasoline, jet fuel, and diesel.
U.S. refinery margins as measured by the 3-2-1 Crack Spread
Valero reported that its quarterly refining profit margins dropped 29.5% from the previous year to $2.49 Billion.
The net loss attributable by the company to its stockholders in the three-month period ended March 31 was $595m, or $1.90 a share. This compares with a profit of $1.2bn, or $3.75 / share last year. (Reporting by Arunima Kumar in Bengaluru; Editing by Maju Samuel)
(source: Reuters)