Latest News
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The Metals Company will apply for a deep sea exploration license in accordance with US legislation
The Metals Company, a Canadian mining company, announced on Thursday that it had initiated a formal process with the U.S. Department of Commerce for the application of exploration licenses and permit to extract minerals from ocean floors. The company intends to apply for a permit under the Deep Seabed Hard Mineral Resources Act of 1981 (DSHMRA), rather than the International Seabed Authority, stating that the latter has not yet adopted regulations regarding deep seabed exploitation. It added that it had requested a consultation prior to the application with National Oceanic and Atmospheric Administration. TMC's attempt to be the first company approved to mine deep sea minerals was controversial. Environmental groups have called for a ban on all activities, warning that industrial operations could lead to irreversible biodiversity losses. The move is made at a time that 36 delegations are meeting in Kingston, Jamaica to discuss the issue of whether mining companies can extract metals like copper and cobalt off the ocean bottom. The latest round of discussions on 28 March will likely not produce a final mining code text. Delegates plan to discuss possible actions in the event that a mining request is submitted prior to the completion of regulations. We believe we are equipped with enough knowledge to start and demonstrate that we can manage the environmental risks. We need a regulator who has a robust regulatory system and is willing to hear our application," said Gerard Barron CEO of The Metals Company. (Reporting from Seher Dareen, Bengaluru. Editing by Vijay Kishore.)
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The US SEC has voted to no longer defend climate disclosure regulations
Wall Street's leading regulator announced on Thursday that it had decided to stop legal actions to defend regulations requiring companies to disclose their climate-related risks, emissions and spending. This regulation had been fiercely contested by industry lobby groups. Mark Uyeda, the acting chairman of the U.S. Securities and Exchange Commission (SEC), a Republican-dominated agency, made public remarks about its decision last month. Since taking office, Donald Trump has taken steps to reverse virtually all the efforts of the previous administration to combat climate change. Uyeda stated in a press release that the goal of today's Commission actions and notification to court was to stop the Commission from being involved in the defense against the expensive and unnecessary climate disclosure rules. The rule was adopted by the Commission last year to inform investors about the accumulation of climate risks and costs within the financial system. As a result, Republican state attorneys general and lobby groups immediately filed suit, claiming that the SEC regulations exceeded its legal authority and burdened businesses. The SEC was facing a Friday deadline that it had set for itself to inform the U.S. Court of Appeals of the Eighth Circuit of the plan of action. The SEC had asked the court to postpone oral arguments until it decided what to do. Steven Rothstein is a senior official with the environmental advocacy group Ceres. He called the SEC decision "truly regrettable," and pointed out investor demand for climate-related data. He said: "This is clearly an effort to help investors and other people get the information they require." Reporting by Douglas Gillison, Washington; additional reporting by Ross Kerber, Boston; editing by Rod Nickel
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Suncor discovers source of spillage at Sarnia refinery
Canada's Suncor Energy said on Thursday it had identified and isolated the source of a hydrocarbon spill observed during regular monitoring at its 85,000-barrel-per-day refinery in Sarnia, Ontario. Suncor also stated that there were no reported injuries. Suncor did not specify if the spilled crude oil or fuel. The company had earlier said that it was responding in response to an incident near the St. Clair River, noting community members might notice an odor. St. Clair Township, in another community alert reported an oil spill that was being contained by Suncor and Shell booms. The water distribution system of St. Clair Township is safe to drink. St. Clair Township stated that the spill was in the St. Clair River, and had no effect on drinking water. Shell Canada announced earlier that workers from the Sarnia Manufacturing Center of Shell Canada in Corunna in St. Clair are offering mutual aid. Shell will provide emergency response personnel and equipment to help. Suncor did not respond to requests for comment. Reporting by Noel John in Bengaluru and Brijesh Patel; editing by Leslie Adler and Richard Chang.
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After Trump's latest tariffs, stocks are down and gold is at a record high.
Gold reached a new record high and global stocks dropped for the second consecutive session on Thursday, following the latest tariffs imposed by the Trump administration in the United States that extended the trade war to automobiles. Trump announced on Wednesday 25% tariffs on imported vehicles and auto parts. The Nikkei 225 and KOSPI, the South Korean stock index, were both affected. Many countries around the world threatened to impose retaliatory taxes. U.S. stock prices fluctuated between gains, losses and a decline in automakers. However, electric vehicle manufacturers Tesla and Rivian rose as their production is based within the U.S. Ford and General Motors both suffered losses of 3.88% and 7.36% respectively, mainly due to concerns over the impact on supply chains. Stellantis' shares listed in the United States fell by 1.25%. Investors are very cautious about Trump and his policies. Jed Ellerbroek is a portfolio manager with Argent Capital, in St. Louis. It makes people nervous about making long-term investments, whether it's about companies or investors. The Dow Jones Industrial Average dropped 155.09, or 0.37 percent, to 42299.70. The S&P 500 declined 18.89, or 0.33 percent, to 5,693.31, and the Nasdaq Composite lost 94.98, or 0.55 percentage, to 17,804.03. The major U.S. indices are set to experience their first consecutive monthly declines since a two-month period ending in October 2023. European stocks ended lower on Friday, as shares of Europe's largest carmakers fell. Volkswagen fell 1.26%; BMW dropped 2.55%, and Mercedes-Benz fell 2.69%. The MSCI index of global stocks fell by 2.77 points or 0.33% to 843.19. The pan-European STOXX 600 fell by 0.44%, to 546.31, which is a new two-week low. In recent weeks, the effects of tariffs on global economic growth and their potential to delay Federal Reserve interest rate cuts have been a drag on stock prices, even though they have recently shown signs that they are stabilizing. Spot gold, reflecting investors' caution was higher by 1.26% at $3,057.35 per ounce after reaching a record high of $3,059.30. Goldman Sachs raised its gold price forecast on Wednesday to $3,300, citing stronger-than-expected exchange-traded fund inflows and sustained central bank demand. The dollar index (which measures the greenback in relation to a basket currency) fell 0.33% at 104.29. Meanwhile, the euro rose 0.4%, reaching $1.0795. The Mexican peso fell 0.86% against the dollar to 20.295, while the Canadian Dollar slid 0.29% to C$1.43, as both countries will be severely affected by the auto tariffs. Trump announced that he plans to impose reciprocal duties on all countries starting April 2. Mark Carney, the Canadian prime minister, said that if Trump were to impose new auto tariffs he would take unspecified measures. The U.S. labor market is still on solid ground, despite the Trump tariff policy and aggressive cuts of federal employees by Elon Musk’s Department of Government Efficiency. Other data revealed that the economy grew slightly faster than originally estimated in the fourth quarter. The yield on the benchmark 10-year Treasury bill in the United States increased 2.7 basis points, to 4.365%. The yield on the seven year note rose after a soft sale of $44 billion worth of paper. Brent crude closed at $74.03 a barrel, an increase of 0.33% for the day. Investors assessed the implications of the latest escalation of the trade war.
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Trump EPA invites companies by email to request exemptions from air regulations
The Trump administration has invited companies to send an email to the Environmental Protection Agency by March 31 to request presidential exemptions to nine clean-air rules, including limits on mercury for power plants and limits to hazardous air pollutants produced in plastics. This is the latest example of a rarely used measure to ease burdens for businesses. The EPA stated that the exemption offer is aimed at achieving President Donald Trump's aim of reducing red tape in energy production. This comes only days after the agency announced it would rollback more than twenty bedrock regulations and water rules as well as Biden era climate regulations. On his first day of office, the president declared an energy emergency in the United States and instructed federal agency heads to use all emergency powers available to speed up energy production and development. The EPA has set up an email account - [email protected] – for companies to submit their requests for exemptions. They must state which emission standards they wish to avoid, how long the exemption should last, and a reason for the request. The agency stated that the request can be extended for two years. It is rare to see presidential exemptions granted. They were previously done through a process that was open to the public. The Trump administration took several steps that were highly visible to roll back regulations from the previous administration and to use extraordinary measures, such as moving quickly to speed up major energy infrastructure projects that require federal wetlands permits. Trump also used emergency powers last week to boost the production of vital minerals that are used throughout the economy, as part of an overall effort to counter China's control over the sector. EPA regulations that are eligible for exemptions include emission standards for rubber tire manufacturing, smelters, and integrated steel and Iron Manufacturing Facilities. Vickie Patton is the general counsel of Environmental Defense Fund. She said that this was an inappropriate measure. She said, "This is a Trump EPA led effort to evade established pollution limits that protect millions of Americans." (Reporting and editing by Alistair Bell; Valerie Volcovici)
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Gold reaches record high after Trump's latest tariffs
Gold and global stocks hit record highs on Thursday, following the announcement of new tariffs by the Trump administration in the United States that extended the trade war against auto imports. Trump announced late Wednesday that he would impose 25% tariffs on imported vehicles and auto parts made abroad. The tariffs are scheduled to go into effect on April 3rd. The Nikkei 225 and KOSPI in South Korea were affected by this. Many countries around the world threatened to impose retaliatory taxes. U.S. stock prices fluctuated between gains, losses and a decline in automakers. However, electric vehicle manufacturers Tesla and Rivian rose as their entire production is located in the U.S. Ford and General Motors both lost 3%. This was due to concerns over the impact of their supply chains. Stellantis' shares listed in the United States fell by about 1%. The pendulum is swinging in the markets right now. They react to announcements with the worst possible expression, but then they slowly realize that the situation might not be quite as bad as thought, or even as stated, because it could be part of a larger negotiation, said Eric Theoret. FX strategist, Scotiabank, Toronto. The Dow Jones Industrial Average dropped 120.77 points or 0.28% to 42,333.38. The S&P 500 declined 9.03 points or 0.17% to 5,702.48. And the Nasdaq Composite lost 41.37 points or 0.23% to 17,857.20. European stocks ended lower on Friday, as shares of Europe's largest carmakers fell. Volkswagen fell 1.26%; BMW dropped 2.55%, and Mercedes-Benz fell 2.69%. The MSCI index of global stocks fell by 1.77 points or 0.21% to 844.15. The pan-European STOXX 600 fell by 0.44%, to 546.31, which is a new two-week low. In recent weeks, the stock market has been impacted by tariffs, their impact on global economic growth, and their potential to delay Federal Reserve interest rate cuts. However, they have recently shown signs of stabilizing. Spot gold, reflecting investors' caution was higher by 1.19% at $3,055.33, after reaching a record high of $3,059.30. Goldman Sachs raised its gold price forecast on Wednesday to $3,300, citing stronger-than-expected exchange-traded fund inflows and sustained central bank demand. The dollar index (which measures the greenback in relation to a basket of currencies) fell 0.35%, while the euro rose 0.42%, reaching $1.0797. The Mexican peso fell 0.98% against the dollar to 20.324, while the Canadian Dollar slid 0.29% to C$1.43, as both countries will be severely affected by the auto tariffs. Trump announced that he plans to impose reciprocal duties on all countries starting April 2. The U.S. labor market is still on solid ground, despite the Trump tariff policy and aggressive cuts of federal employees by Elon Musk’s Department of Government Efficiency. Other data revealed that the economy grew slightly faster than originally estimated in the fourth quarter. The yield on the benchmark 10-year Treasury bill in the United States increased by 2.5 basis points, to 4.363%. The yield on the seven year note increased after a soft sale of $44 billion worth of paper. Brent crude closed at $74.03 a barrel, up by 0.33% for the day as investors assessed the implications of the latest escalation of the trade war.
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US Justice Department considers merging DEA, ATF in major shakeup, memo says
According to a memo obtained by the Associated Press, the U.S. Justice Department may merge the agencies that enforce drug and gun laws as part of a major shake-up to follow President Donald Trump's directive to streamline government. According to a memo dated March 25, department leaders may merge the Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives, and eliminate field offices that deal with antitrust, civil and environmental cases. The memo states that a possible merger between the ATF, DEA and other agencies would "realize efficiencies in terms of resources, case deconfliction efforts and regulatory efforts." In a memo, Todd Blanche, Deputy Attorney general of the United States, ordered that department officials provide feedback on the proposed restructuring before April 2, 2019. He said that the Office of Personnel Management and White House Office of Management and Budget had already been provided with the proposed plan of cuts and mergers in various offices. A DOJ spokesperson didn't immediately respond to an inquiry for comment. The memo does NOT specify the number of jobs that could be affected. As of January, the department employed approximately 115,000 people. Trump's campaign to shrink the federal Government, led by Elon Musk and his billionaire advisor Trump, has targeted over 100,000 jobs in federal agencies. Previously reported, the Justice Department considered drastically reducing staffing at the Public Integrity Section. This section handles the most politically sensitive cases of public corruption within the Justice Department. A number of the Justice Department's attorneys resigned outraged after a senior Justice Department official told them to drop corruption charges against New York City Mayor Eric Adams. The memo recommends that some attorneys who specialize in public corruption be reassigned to U.S. The memo calls for reassigning some public corruption attorneys to work out of U.S. STAFFING CUTTING CONSIDERED The Department is looking at cutting staff in several sections of the Criminal Division as well as National Security Division. This includes those who handle cases under the Foreign Corrupt Practices Act as well as counterintelligence, export control and other matters. In February, Trump ordered the Justice Department in an executive order to stop enforcement of foreign corruption laws. Bondi had previously announced that she would reduce resources in this area. The memo also proposes merging the Justice Department's Grant Offices into one, and eliminating the Community Relations Service. This office is responsible for de-escalating tensions within local communities. The memo also suggests moving some attorneys from Tax Division to U.S. Attorneys' Offices, moving Consumer Protection Branch from the Civil Division to the Criminal Division, and consolidating policy offices. The merger of ATF and DEA could be one of the most significant changes to the Justice Department’s law enforcement component since the terrorist attacks of September 11, 2001. In an unusual dual role, FBI Director Kash patel also serves as acting director of the ATF. Trump has nominated Terry Cole to be the permanent leader of the DEA. However, he has yet to name a permanent ATF head. ATF's role as a law enforcement agency in the United States has made it more vulnerable to conservative political pressure than any other arm of US law enforcement. Gun rights groups want to limit the ATF's legal authority to regulate firearms. Since 2006, the Senate has been able to confirm ATF directors only twice. (Reporting and editing by Scott Malone, Rod Nickel and Sarah N. Lynch)
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Morgan Stanley seeks Goldman Sachs' help to sell PNE stakes, sources claim
Morgan Stanley and Goldman Sachs are exploring the possibility of selling their majority stake in German renewable projects developer PNE. This could lead to a bid being made for the 1,09 billion euro ($1.17 billion), firm. One person said that Goldman Sachs is already contacting potential private equity investors about their interest in Morgan Stanley’s 50.06% stake, currently valued at around 543 million Euros, in PNE. The people added that the deliberations are still at an early stage, and it is not certain if a deal will happen. Morgan Stanley, Goldman Sachs, and PNE declined to comment. According to German stock exchange rules, purchasing Morgan Stanley's whole stake would trigger an automatic takeover bid of PNE. PNE develops photovoltaic and wind projects, and as of the end of 2024, had a pipeline totaling 18.9 gigawatts. Morgan Stanley has made a new attempt to sell its stake, after a failed effort in early 2023. At the time, sources familiar with this matter said that EQT and Engie were expected to show interest in the process. The shares of PNE are up 28% this year to date, reaching 14.16 euros each. This is more than triple the price Morgan Stanley paid in 2020 when it bought its first stake in the company. PNE, a company listed on the SDAX, reported an increase of 73% in its core profit (EBITDA), which is expected to reach 69 million euro in 2024. They expect it to grow to 110 million euros in this year, and 140 million by 2027.
Germany's election: polls, parties, and policy debates
Germany will hold an immediate national election on February 23 after the collapse of Chancellor Olaf Scholz’s three-way alliance.
The main political parties, their polling positions, and key policy issues are listed below:
Parties
Germany has two "big-tent", centrist parties: Scholz’s centre-left Social Democrats and the opposition Conservatives, an alliance between the Christian Democrats (CDU), and their Bavarian counterpart party, the Christian Social Union CSU.
In recent years, smaller parties like the Greens or Alternative for Germany (AfD), a far-right party, have gained ground.
All four parties, the SPD, Greens, Conservatives and AfD, have candidates running for chancellor.
According to polls, the Free Democrats (FDP), Linke (a far-left party) and Sahra Wagenknecht Alliance are also running. However, they are at risk of not reaching the 5% threshold for entering parliament.
According to the INSA survey released on February 1, the conservatives are leading the nationwide polls and have reached 30%. The AfD is at 22%.
Scholz' SPD has fallen to third place from first in the election of 2021. The Greens are on 12%, and the BSW is on 6%. Both the FDP and Linke poll at 4%
Analysts believe that polls can change quickly as voters have become less loyal. The conservatives were unable to maintain their lead in the election campaign of 2021. They fell from the frontrunners to the runner-up in a matter of months.
Friedrich Merz is a conservative leader who is prone to gaffes. He can also be quick to anger.
What are the key issues?
Ukraine
The mainstream parties in Germany are all for helping Ukraine to repel Russia's full scale invasion. However, the AfD/BSW wants to stop weapons deliveries to Kyiv as well as a return to good relations with Moscow.
Scholz and the SPD, however, have struck a more conservative tone recently, highlighting the importance of diplomacy, than the Greens, FDP and the Conservatives who all support the delivery of long-range Taurus rockets from Germany to Kyiv.
Reviving the Economy
Scholz proposes to encourage private investment and modernise infrastructure by creating a 100 billion euro fund that is off budget. Scholz' SPD plans to give businesses a 10% direct tax rebate on their equipment purchases.
Robert Habeck, a Green Party member, has called, as Scholz did, for reforms to the constitutionally-enshrined debt break in Germany, allowing for increased public spending.
Merz also indicated some openness towards a moderate reformation of the debt brake, but in his party's platform he pledged to keep it. Both the AfD (the Alternative for Germany) and the FDP (the Free Democratic Party) are staunch defenders against the public borrowing limit.
In the CDU/CSU manifesto, they have proposed a wide range of financial reliefs for citizens and companies, including tax reductions on income and corporations, as well as lower electricity rates. The CDU/CSU have not stated how they would finance these.
The AfD is calling for Germany to abandon the euro and reintroduce its own currency, the Deutsche Mark. It also wants the country to leave the EU.
- Migration
The public's concern over migration and security has been exacerbated by a series of violent attacks in Germany that are linked to foreign suspects. This has led to political parties demanding stricter immigration measures.
Merz broke a taboo by sponsoring a bill in support of the AfD after the latest attack on January 22. This was a break from the previous policy against working with the far right party.
He failed to get a majority of his own deputies to back the bill.
The conservative CDU, in general, has taken a more strict stance against immigration over the past few years. They have called for the deportation of asylum seekers, as well as limits on family reunions and naturalisations for refugees.
AfD, the anti-Islam and anti-migration party, has called for border closures and to deny asylum seekers their right to family reunion. AfD senior members went further with their comments, and attended discussions between far-right activists on the deportation of millions of people from foreign countries including German citizens.
The SPD has a tougher stance on immigration, enforcing more strict border controls and increasing deportations.
The Greens, on the other hand, maintain an open policy in terms of asylum, and promote initiatives such as state-sponsored sea rescues, simplifying processes for family reunion and enhancing integration.
- Energy
The high energy prices in Germany remain a major challenge for both households and businesses. They are also a key topic during the election campaign.
CDU, SPD, and Greens all agree that renewable energy can be expanded to reduce costs, but they differ in their financing strategies: The CDU proposes using higher revenues from CO2 certificates to lower network charges, while SPD and Greens favor debt-financed subsidies. The CDU, AfD and SPD also suggest a return of nuclear power. This idea is rejected by SPD and Greens.
The AfD is against all renewable energy subsidies. It advocates unrestricted operation of coal-fired plants and the elimination of CO2 pricing in order to reduce consumer costs and improve energy security.
Relations with Trump
Germany is especially sensitive about the question of how to deal with the new administration led by Donald Trump who has already hinted at increased tariffs and reduced support for Europe. The U.S. is still Germany's main export market and security ally.
Scholz, the SPD candidate, has strongly reacted to Trump's remarks on Greenland, Canada and other countries. Merz, the conservative candidate, warned him against lecturing Trump, focusing instead on areas of potential cooperation, such as a possible EU-U.S. Trade Deal or joint China Strategy.
Habeck, a Greens member, warned that the EU should stand united and engage in talks with Trump's administration as a trade conflict will harm both sides.
All the major parties are sceptical about Trump's demands that European countries increase their defence spending to 5%. This is because Germany will struggle to maintain 2% of its economic output after the special fund for military purposes runs out. Habeck has, however, already proposed a 3.5% increase.
AfD is the German party which has shown the most support for the Trump administration. Elon Musk was a frequent endorser of the AfD and spoke on X to Alice Weidel, the party's candidate for chancellor. Reporting by Sarah Marsh and Maria Martinez. Editing by Alexandra Hudson and Mark Heinrich.
(source: Reuters)