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Maine Governor rejects the first US state to freeze new data centers
Janet Mills, the Democratic Governor of Maine, vetoed on Friday a bill which would have made Maine the first U.S. State to impose an 'electricity-hungry data center moratorium. The bill would have frozen the approval of data centers that require more than 20 megawatts in power until October 2027, while an appointed council by the state analyzed the impact they had on local grids, electricity bills, and air and water. Mills wrote to the Maine legislature that she supported a temporary ban on data centers and would have signed it if the bill had allowed an exemption for the data center being built in the town of Jay. "A moratorium would be appropriate, given the impact of massive data centres in other states both on the environment and the electricity rates." The final version of the bill does not allow for the Town of Jay to have a project that is supported by the local community and the region. A boiler explosion in 2023 caused the closure of Androscoggin Paper Mill, resulting in hundreds?of job losses. Mills stated that the construction of a $550-million data center at this site would create more than 800 construction jobs as well as at least 100 permanent high-paying jobs. It would also generate property tax revenue for the town. The decision taken on Friday is a reflection of the difficult choice that political leaders face when weighing the impact data centers have on the environment, household energy costs and the tax revenue and investment they can generate. Mills said she also plans to issue a executive order to establish a council that will examine the impact of data centres in Maine. She has also signed a law to prevent data center projects being eligible for Maine's tax incentive programs. American tech giants are pledging to spend more than $600 billion this year on artificial intelligence data centres as part of an investment spree which 'has boosted U.S. economy and is considered largest since the telecom boom in the late 1990s. At least 11 U.S. States are now considering legislation to halt or restrict the development of these facilities. This is despite the Trump administration's pressure on states to not regulate AI. Last month, Washington asked big technology companies to sign at the White House an 'unconditional pledge' that they would pay for the new electricity generation needed to power their data centres. Senator Bernie Sanders, and Representative Alexandria Ocasio Cortez have both introduced legislation that would halt construction of data centers until Congress passed AI safety legislation. Aditya soni, Chris Thomas, and Mrinmay dey reported from Mexico City. Pooja desai edited the story.
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Sefcovic, EU's Sefcovic, says that the US has indicated that it will not ease Russian oil sanctions once again.
Sefcovic said that during his Friday talks with U.S. Treasury Secretary Scott Bessent he had raised concerns over 'the recent U.S. easement of sanctions on Russian Oil,' and understood it would not happen again. Sefcovic said he had been told by U.S. officials the relief in sanctions was due to concerns over the "extremely hard situation" that some low-income countries face, who are heavily dependent on imported oil. The U.S. Treasury Department issued on Friday a general license related to Russia, allowing for the sale and delivery of Russian crude oil as well as petroleum products on vessels from April 17. This license extends a previous one through May 16. Bessent told U.S. Senators this week that he had extended sanctions relief?on Russian seaborne crude oil for an additional 30 days, after receiving requests from countries most at risk of shortages?due to a closure of the Strait of Hormuz. He said that the requests were made during last week's spring meetings of the International Monetary Fund and World Bank. Sefcovic told Bessent that he had discussed the matter with him during their meeting earlier this week. He was informed, however, that the relief of sanctions was necessary to address the current situation in the Strait, where the flow is largely blocked due to an uneasy ceasefire agreement between the U.S. He said: "My clear understanding was that it will not be repeated again in the future. It was also done due to the fact that several countries with lower incomes were in a very... difficult position." Sefcovic and Bessent also discussed disruptions to fertilizer supply chain, with a focus on Europe as well the "alarming" situation in Africa. "It is on our radars and we're ready to work together," he said. Bessent last week pushed the Group of 20 Major Economies to agree to a coordinated?action with the IMF and World Bank to ensure that countries have access to?fertilizer supplies. Since the U.S. and Israel's bombing campaign on Iran began on February 28, Asian economies have been particularly affected by the lack of oil from the Gulf. Reporting by Andrea Shalal, Editing by Paul Simao
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Sefcovic, EU's Sefcovic, says he has discussed steel with US officials and that the discussion is moving in a positive direction
European Trade Commissioner Maros Sefcovic stated that he and U.S. Secretary of Commerce Howard Lutnick had 'agreed' to accelerate discussions about steel derivatives on a technical level. Talks have already begun. Sefcovic told reporters that, in his opinion, both sides are moving forward on the steel issue. He said that both the United States as well as the EU were facing the same problem of massive overcapacity on the global market, without mentioning China. Sefcovic told a press conference that "we are not each other's problem" after signing an agreement on critical minerals with U.S. secretary of state Marco Rubio. "Our trade is small and it is very much focused on the specialized steel which we both require, but we are facing a large overcapacity." Sefcovic estimated that global overcapacity at 720 million tonnes, which was flooding and destroying the sector. He said that the crisis is what prompted the European Union?to nearly halve the imports of steel, and impose 50% tariffs on excess shipments in order to protect the bloc?s steel industry. Due to the rising imports, and tariffs of 50% imposed by President Donald Trump in the U.S., EU steel producers are only operating at 65% capacity. The new measures are intended to increase capacity utilization to 80%. Sefcovic told?Lutnick he had proposed that the two 'blocs' ringfence their respective steel?sectors, and to trade at favorable terms between themselves. He called this a "defensive" mechanism against steel subsidies. (Reporting and editing by Lisa Shumaker, Franklin Paul, and Andrea Shalal)
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US sanctions Chinese teapot refinery that bought Iranian oil
Trump Administration announced on Friday that it had imposed sanctions on an independent "teapot refinery" in China for?buying billions worth of Iranian crude oil while Washington and Tehran are struggling to restart peace negotiations. Treasury Department targeted Hengli Petrochemical Refinery Co., which they said was one of Iran's biggest customers for crude oil and petroleum. The Office of Foreign Assets Control of the Treasury Department said that it had also imposed sanctions against about 40 shipping firms and vessels operating as part of Iran’s shadow fleet. Last year, the Trump administration imposed sanctions against teapots Hebei Xinhai Chemical Group and Shandong Shouguang Luqing Petrochemical. This created a few hurdles for refiners. They had to receive crude and sell refined products under different names. Teapots make up about a quarter (25%) of Chinese refinery capacities. They operate with 'narrow and sometimes negative margins', and have recently been squeezed by the tepid demand at home. Some independent refiners have been deterred from purchasing Iranian oil by the U.S. sanctions that block U.S. assets and prohibit Americans from doing business. Data from Kpler's analytics firm for 2025 showed that China purchases more than 80% Iran's oil. The experts in the field of sanctions have long maintained that independent refineries, due to their limited exposure to the U.S. Financial System, are immune from the full impact of U.S. Sanctions. They say that imposing sanctions on China’s banks, which facilitate the?purchases of Iranian oil would have a greater impact on those purchases. Treasury Secretary Scott Bessent stated that the U.S. was imposing a financial "stranglehold", on the Iranian Government. Bessent stated that Treasury will continue to restrict the network of vessels, intermediaries and buyers Iran depends on to transport its oil to international markets. Teapot refiners have recently had to purchase Iranian oil at a premium to Brent oil prices after Washington temporarily waived sanctions on Iranian oil shipped at sea. This was done to encourage India to buy more oil. The U.S. allowed the waiver expire last week. Timothy Gardner and David Gaffen edited this report.
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Gold heads for first loss in five weekly weeks
Gold was up on Friday but on course for its first weekly loss in the last five week as the markets were on edge due to lingering inflation concerns and the uncertainty surrounding the U.S. - Iran war. At 01:41 pm, spot gold was up by 0.6% to $4,721.15 an ounce. ET (1741 GMT) after rising more than 1 percent earlier in the day. The price of gold is down over 2% this week. U.S. Gold Futures for June Delivery settled 0.4% higher at $4,740.90. Gold prices?fell throughout the month of March, as the U.S. - Iran war boosted the dollar and raised fears about inflation. This weighed down on the demand for gold. The conflict is at a standstill. Even though the number of military attacks by the countries involved has decreased, the Strait of Hormuz remains closed. Investors are left to fill in the gaps or react to U.S. President Donald Trump's comments, which have tempered expectations of a peace deal with threats to resume attacks. Pakistani sources confirmed that Abbas Araqchi, Iran's foreign minister, was due in Islamabad, Pakistan, on Friday, to discuss proposals to restart peace talks with United States. However, he was not expected to meet U.S. delegates. Separately Israel and Lebanon extended a ceasefire of three weeks. The market is currently in a positive net situation. "Energy prices are also falling," said Daniel Pavilonis senior market strategist at RJO?Futures. The oil prices fell on Friday but have risen this week as a result of the failure of a second round of talks between the U.S. Oil prices that are higher can cause inflation, which could lead to interest rate increases. Giovanni Staunovo, an analyst at UBS, said that gold fell (this week) as a result of the rising oil price, expectations for higher rates and yields. Benchmark 10-year ?U.S. Treasury yields rose 1.5% in the past week, increasing the cost of owning?gold. The dollar, on course for its first weekly increase in three weeks, also increased the price of bullion for other currencies. Silver spot rose by 1.4%, to $76.49 an ounce. Platinum gained 0.5%, to $2,015.98, and palladium grew 2.2%, to $1,499.75. (Reporting by Ishaan Arora in Bengaluru; Editing by Kirsten Donovan)
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Brazil's Finance Minister says Brazil wants to regulate essential minerals without tax incentives
Brazil's planned critical minerals rules don't involve new?tax?breaks. Finance Minister Dario Dario Durigan stated on Friday that the goal was to ensure national sovereignty and increase value through domestic processing. Durigan, the new minister who assumed responsibility last month, said from his office that the auction of Eco Invest, which offers blended financing to attract foreign investment, will prioritize critical minerals. Brazil is a small producer but has vast reserves of vital minerals for high-tech industries. The U.S. wants to integrate Brazilian miners into its supply chain to counterbalance China's dominance in the industry. Durigan stated that large fiscal incentives were not necessary to develop critical minerals in Brazil due to the strong global demand. He also noted that major economies already seek partnerships with Latin America's biggest economy. He said in the interview that "there will still be government engagement... but without tax incentives which are not necessary for the sector to progress." "Investment has already been?attracted, and tax breaks are not required from the Brazilian Government," he said. He added that some support via programs like Eco Invest make sense as a targeted, limited, and strategic economic subsidy. Marcio Rosa, the Development Minister, reaffirmed earlier on Friday the view that prevails within the government, which is against the creation a state-owned corporation for critical minerals. He also backed rapid regulation of the industry in discussions with Congress. VENEZUELA Durigan who attended this month's IMF/World Bank Spring Meetings held in Washington said that Brazil was active in its efforts to restore Venezuelan ties with multilateral organizations. He said that both the Trump Administration?and Asian stakeholder were interested in opening the door for Venezuela to gain access to finance to?rebuild their infrastructure. He said that Brazil's position, namely that Venezuela is an important regional player and needs to turn the page in order to regain its economic strength, was crucial. He added that "Brazilian companies will participate in the emergence of 'new investment opportunities' in Venezuela." PREDICTION - MARKETS Durigan said that the government would announce measures later on Friday to regulate prediction market, which has grown globally but operates in a grey regulatory area?in Brazil. He said that Brazil has specific rules regarding?gambling including online platforms and financial derivatives. Both of these have implications for prediction market, he added. "There are only two consequences and two outcomes," Durigan said. He stressed the need for a more clear regulatory framework to allow prediction markets in Brazil to grow. (Reporting and editing by Gabriel Araujo and Brad Haynes; Alexander Smith, Brad Haynes, and Marcela Ayres)
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Nuclear reactor manufacturer X-Energy is valued at $11.9 Billion in stellar Nasdaq debut
X-Energy's shares surged by 30.9% on their Nasdaq debut, valuing the company at $11.9 billion. This shows a strong interest in a new generation of energy developers who are able to create carbon-free power that could fuel artificial intelligence boom. Amazon-backed nuclear reactor developer raised a total of $1.02bn in its initial public offering (IPO) on Thursday. It sold 44.3 million shares at $23 each. The stock opened at 30.11. The listing is a crucial capital milestone for X-Energy, as it races to deploy "Xe-100", small modular reactors. Industry analysts view this as a solution that will allow the first commercial SMRs to reach the U.S. grid before the end of the decade. X-Energy's debut is backed by significant tailwinds from the power sector as tech giants and data center developers turn to advanced nuclear energy for powering energy-intensive artificial-intelligence infrastructure, while also meeting 24/7 carbon-free goals. The developers of nuclear reactors can offer reliability solar and wind, which are hampered by their intermittency, cannot match. X-Energy CEO Clay Sell stated that being a publicly traded company provided a number of benefits. These included transparency with customers and investors, equity for employees to be rewarded, and the opportunity to support and invest in its supply chain while it grows its business 'in the next years. "We wanted to use this opportunity to build up a bigger balance sheet, which allows us to reduce the risk in getting to scale." TAILWINDS AND BACKERS The SMRs have been designed to be smaller and more cost-effective than large-scale traditional reactors. These can take many years to construct and are prone to budget overspends. X-Energy has developed its Xe-100 nuclear reactor which uses helium instead of water as a cooling agent. It has also established a nuclear fuel company that will supply fuel for the reactors sold on a revenue-recurring basis. Sell stated that this distinguishes it from its rivals in providing consistent revenue over the long term, attracting significant interest from investors. The company was founded in 2009. Its customers include Amazon, the specialty chemicals group Dow, and Centrica, which is a UK-based energy services provider with a 20% share in its nuclear reactor fleet. X-Energy originally planned to 'go public' through a merger in 2023 with a blank-check company backed by Ares Management, but later canceled those plans citing unfavorable?market?conditions. The increased interest in this sector can be seen in the fact that X-Energy has closed two funding rounds worth $700 million, each, since the start of last year. These funds were backed by major investors such as Amazon, Jane Street and Ares Management Funds. IPO MARKET VOLATILITY Recent activity in the U.S. initial public offering market has increased. In the last month, several big names have filed to become public in the U.S., including Elon Musk's SpaceX. This suggests that there will be a steady stream of new listings through 2026. Investors and public companies were in a waiting and watching mode at the start of the year, due to the volatility in equity markets, and the rising tensions in Middle East.
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US consumer confidence slumps to record lows in April; inflation expectation rise
U.S. consumer confidence fell to a new record low in April, as consumers shrugged off the ceasefire in the?war with Iran and remained focused on 'the inflation fallout of this conflict. Consumer Sentiment Index, a measure of consumer sentiment published by the University of Michigan's?Surveys?of Consumers?, fell to a record low of 49.8 in December. This was an improvement over the reading of 47.6 earlier in the month. The economists polled predicted the index to be at 48. In March, the index was 53.3. It was a decline in sentiment across all political parties and among investors in the stock exchange. The Iran War has caused disruptions in shipping through the Strait of Hormuz. This has led to a rise in oil prices and, ultimately, the price of gasoline and diesel. Other commodities such as fertilizers, aluminum and petrochemicals, which will affect consumers soon, have also risen in price. After the beginning of the war, on 28 February, Tehran closed the Strait. This week, President Donald Trump extended the ceasefire indefinitely with Iran. Joanne Hsu is the director of the Surveys of Consumers. She said that the Iran conflict seems to affect consumer opinions primarily by shocks in gasoline prices and possibly other prices. "Military and diplomatic developments which do not ease supply constraints or reduce energy prices will likely not 'buoy' consumers. GASOLINE PRICES AND DIESEL PRICE INCREASE Data from the U.S. Energy Information Administration shows that diesel prices are well above $5 per gallon. The national average retail price of gasoline has been above $4 a gallons this month. A poll conducted by /Ipsos on Friday revealed that a majority of Americans blamed Trump's Republican Party for the soaring gasoline prices. Diesel prices will likely increase the price of goods transported via road. While the correlation between consumer spending and sentiment was weak, economists expected that households, particularly those with lower incomes, would reduce their consumption. Grace Zwemmer is an economist from Oxford Economics in the United States. She said that she expects higher gas prices to slow down consumption growth. The impact of higher gas prices will primarily be felt by lower- and middle-income families, as a greater share of their total spending is spent on gasoline. In March, the survey's measure for consumer expectations of inflation in the coming year was 3.8%. This?month it jumped to 4,7%. The reading for April was higher than the levels of 2024, and well above the range between 2.3%-3.0% seen in the years leading up to the COVID-19 pandemic. Consumers' expectations of inflation over the next five-year period increased to 3.5%, up from 3.2% in last month. The survey by S&P Global showed that higher inflation expectations were added to the survey on Thursday. It showed that a measure of the prices charged by companies for their goods or services rose in April to its highest level in almost four years, strengthening the expectations in the financial markets. Heather Long, Chief Economist at Navy Federal Credit Union, said that "more pain" will be felt as higher transportation costs for food, appliances and toys are passed on to consumers. "Sentiment will not improve until the Strait of Hormuz opens and there is an end to the war." Reporting by Lucia Mutikani, Washington; Editing and proofreading by Chizu Nomiyama & Matthew Lewis
Amazon.com tries to settle lawsuit alleging rice is contaminated with heavy metals
Amazon.com asked a federal court to dismiss a class-action lawsuit over the sale of rice allegedly contaminated with arsenic, and other "heavy" metals. The company denied that it had fraudulently concealed the contamination.
Amazon filed a late Friday filing in Seattle Federal Court, stating that the presence of heavy-metals in rice is a "decades old, well-known problem" which was easy to detect. The plaintiffs didn't claim there were any more metals present than the regulators permitted.
Amazon said that Section 230 (of the federal Communications Decency Act) shields online platforms like Amazon from any liability for content provided by third parties such as rice sellers.
The lawyers for the plaintiffs didn't immediately respond to comments on Tuesday.
The lawsuit filed on May 23, covered 18 different types of rice, including brands like Ben's Original or Whole Foods' 365.
Ashley Wright and Merriman Blium, plaintiffs, said that they would not or would have paid a lower price for Iberia Basmati Rice, one of their products, if they knew it was contaminated, or if Amazon had never tested the product for heavy metals.
Heavy metal exposure has been linked to kidney damage, nervous system disorders and immune system suppression. The heavy metals have also been linked to autism spectrum disorders and attention deficit/hyperactivity disorder among young children.
The lawsuit was filed after a study conducted by the nonprofit Healthy Babies, Bright Futures, in which arsenic was found in all 145 samples of rice purchased across the country, cadmium, in all but one, and lead, mercury, in more than a third.
Wright et al v Amazon.com Inc., U.S. District Court for the Western District of Washington (No. 25-00977. Reporting by Jonathan Stempel, New York, Editing by Bill Berkrot
(source: Reuters)