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Official: BYD's factory in Brazil will be "fully functional" by the end of 2026.
In a video posted on Monday, Augusto Vasconcelos, Bahia's state labor secretary, said that the new factory of Chinese electric car manufacturer BYD in Brazil would be "fully operational" by December 2026. Its operations had been delayed due to an investigation into possible labor abuses. He added that the factory would start manufacturing cars by the end of the year from semi-finished kitted. Vasconcelos said in a video posted on social media that a new schedule was being created so the factory would be fully operational by December 2026, with an expectation of 10,000 jobs. Vasconcelos stated that the news came as Bahia governor Jeronimo Rodriguez traveled to China, along with President Luiz inacio Lula Da Silva, to discuss plans for BYD, and the auto industry. The company did not respond immediately to a comment request. BYD is investing in Brazil, its largest market outside China. The goal of the investment is to convert a former Ford plant into a complex capable of producing 150,000 electric vehicles per year. In December, allegations of abuses on the site tarnished the project. The Chinese company has bet heavily on Brazil, including the purchase of mining rights in areas that are rich in lithium. Lithium is a mineral used for batteries commonly found in electric vehicles. According to Julio Bonfim of the Metalworkers Union of Camacari in Bahia, the plant was supposed to start making cars at the beginning this year. However, delays caused by the labor investigation and heavy rains impacted the timeline. Bonfim reported that BYD will hire only 1,000 workers to assemble vehicles using kits imported from China this year. This is far less than the 10,000 promised by the Chinese company. Bonfim, despite the delay, said that the new timeline was good news. He also predicted that hirings would increase next year as the company prepares to manufacture vehicles exclusively in the country. (Reporting and editing by Brad Haynes, Aurora Ellis and Fabio Teixeira)
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EU analyzes U.S. UK trade deal and its impact on EU, global Trade
Valdis Dombrovskis, European Economic Commissar Valdis Dombrovskis stated on Monday that the European Commission will be analysing the implications of the United States-Britain trade agreement struck last week for the European Union's 27 member nations and for global trade. Last Thursday, the United States and Britain announced an agreement to lower tariffs for some goods. The United States will reduce its levies against cars and steel and both sides will gain better access to agricultural markets. Dombrovskis stated that "we are closely analysing the contents...to assess its...potential effects, particularly in regards to any effects on EU interest or the global broader trade environment". The EU is currently in talks with Washington about its own trade agreement that would replace the 20% tariffs across-the-board on most EU products and the 25% tariffs for steel, aluminium, and cars and parts. The U.S. set a 90 day window for negotiations that ends on July 8, 2018. Tariffs are set at 10% until then on the majority of EU goods, with the exception of steel, aluminum and cars, which have higher rates. Dombrovskis stated that "negotiations are underway between the EU and the U.S. and we intend to use this 90-day period... in order to reach a negotiated resolution, which we have indicated is our preferred solution." He said that the EU was also preparing for the possibility of a no deal outcome. Last Thursday, the European Commission proposed countermeasures against imports from the United States worth up to 95 billion euro ($107 billion). This is if negotiations between Washington and Brussels fail to resolve the tariffs that President Donald Trump has imposed. (Reporting and editing by Toby Chopra; Jan Strupczewski)
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France announces that the European Commission is working to tighten sanctions against Russia after leaders' requests
France announced on Monday that leaders who met on Ukraine at the weekend asked the European Commission for new "massive sanctions" against Russia's financial and oil sectors if Russia did not agree to a ceasefire. Jean-Noel Barrot, speaking to Normandy reporters, said that work has already begun on additional measures that go beyond the 17th package of sanctions that is expected to be adopted by the next meeting of foreign ministers on May 20. "We are preparing additional sanctions that target the financial and energy sectors." "We asked the European Commission this weekend to prepare new, more significant sanctions to force Russian president Vladimir Putin to a peace logic," Barrot stated after a phone call with European counterparts as well as U.S. secretary of state Marco Rubio. On Saturday, leaders from France, Germany and Britain were in Ukraine and had a video conference with other leaders including Ursula von der Leyen, the President of the European Commission. Donald Trump, the U.S. president, offered to attend a potential Ukraine-Russia meeting in Turkey on Thursday. This was after Ukrainian President Volodymyr Zelenskiy announced that he planned to travel to Istanbul to wait for his Russian counterpart Vladimir Putin. Russia has not yet confirmed its attendance. Diplomats say that European nations have been calling for a ceasefire in advance of any such meeting, warning about impending coordinated U.S. - Europe sanctions. However, it now appears to depend on the outcome of Thursday's talks and whether they happen. "We support a direct contact between President Zelenskiy, and President Putin." Putin suggested a direct contact between Zelenskiy, and Zelenskiy agreed. So Putin must follow through on his contract and travel to Istanbul Thursday," Barrot stated. He said that a ceasefire was necessary for serious talks to take place, as it is impossible to negotiate with drones and air strikes. Barrot stated that "we are preparing massive and powerful sanctions if he does not accept a truce." He said that potential European sanctions are being coordinated with the U.S. sanction bill that is being put together. The bill would impose tariffs on countries that import Russian oil of 500%. (Reporting and editing by Toby Chopra; Reporting by John Irish)
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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)
Iran's ruling class caught between Trump's repression and an economy in trouble
Iran's clerical leadership may find that engaging the "Great Satan" in order to negotiate a nuclear agreement and ease crippling economic sanctions is the lesser evil.
Four Iranian officials have said that despite its deep mistrust for the United States and in particular President Donald Trump, Tehran is growing increasingly worried about public anger at economic hardships escalating into massive protests.
People said that despite the defiant and unyielding rhetoric of Iran's clerical leadership in public, there was a pragmatic desire within Tehran's power corridors to strike a bargain with Washington.
Tehran's fears were exacerbated when Trump revived his "maximum-pressure" campaign from his first term, which aimed to reduce Iran's oil sales to zero by imposing more sanctions. This would bring Iran's fragile economy to its knees.
Masoud Pezeshkian, the president of the Islamic Republic of Iran, has repeatedly emphasized the severity of its economic situation, saying that it was more difficult than the Iran-Iraq War in the 1980s. He also pointed this month at the latest round U.S. sanction targeting oil tankers transporting Iranian oil.
According to one of the Iranian officials, leaders are concerned that cutting off diplomatic avenues could further fuel discontent in Iran against Ayatollah Ali Khamenei. This is because he is the final decision maker for the Islamic Republic.
Alex Vatanka is the director of the Middle East Institute's Iran Program in Washington. He said that there was no doubt whatsoever that the man, who has been the supreme leader since 1989, and his foreign policies preferences are the most responsible for the current state of affairs.
Iran's poor economy prompted Khamenei, who was then president of Iran, to back the nuclear deal struck in 2015 with major powers. This led to the lifting of Western sanctions as well as an improvement in economic circumstances. Then-President Trump’s renewed attack on Iran after he withdrew from the nuclear agreement in 2018 squeezed life standards again.
The situation is getting worse every day. I cannot afford to pay rent, bills or clothes for my kids," Alireza Yousefi said, 42, an Isfahan teacher. "Now, even more sanctions make it impossible to survive."
The Iranian Foreign Ministry did not reply to a comment request.
"ON EQUAL TERMS"
Trump, while increasing the pressure on Iran through new sanctions and military threats, also opened the doors to negotiations when he sent a letter to Khamenei suggesting nuclear talks.
Khamenei rejected the offer Wednesday, repeatedly saying that Washington had made excessive demands and that Tehran wouldn't be pushed into negotiations.
In an interview published Thursday, Abbas Araqchi, Iran's top diplomatic official said: "If we negotiate while the other party is exerting maximum pressure on us, we will be in a weaker position and achieve nothing."
He said that "the other side must be convinced of the ineffectiveness of the pressure policy - then we can sit down at the table and negotiate on equal terms."
A senior Iranian official stated that there was no other option but to reach a deal, and it was possible. However, the road ahead was bumpy, given Iran's mistrust of Trump following his abandonment of the 2015 agreement.
Iran's economic collapse has been largely prevented by China, its main oil buyer and one of the few countries still trading with Tehran in spite of sanctions.
According to estimates by the U.S. Energy Information Administration, oil exports dropped after Trump abandoned the nuclear deal, but recovered in recent years. They are expected to generate more than $50 billion of revenue between 2022 and 2023, as Iran finds ways to avoid sanctions.
But uncertainty still looms about the future of exports, as Trump's policy of maximum pressure aims to choke off Iran's crude oil sales by imposing multiple rounds of sanctions against tankers and other entities involved in trade.
PUBLIC ANGER SIMMERS
Iran's rulers also face a series of crises: energy and water shortages; a collapsing dollar; military setbacks for regional allies, and growing fear of an Israeli attack on its nuclear facilities. All of these are exacerbated by Trump's hard stance.
Lack of infrastructure investment, excessive consumption driven by subsidies and declining natural gas production, as well as inefficient irrigation are all contributing to the energy and water sector's problems. This leads to blackouts, and water shortages.
According to foreign exchange websites and officials, the Iranian rial's value has dropped by more than 90 percent against the dollar ever since sanctions were reinstated in 2018.
State media reported that Iranians, worried about Trump's harsh approach, have bought dollars, other hard currency, gold, or cryptocurrency, indicating further weakness in the rial.
State media reported that the price of rice had risen 200% in the past year. Media reports indicate that housing and utility costs in Tehran and other major cities have risen sharply in recent months. They climbed roughly 60%, mainly due to the steep decline of the rial and the rising cost of raw materials.
Some Iranian experts claim that the official inflation rate is over 50%, but it hovers at around 40%. The Statistical Center of Iran has reported a dramatic rise in food costs. In January, the prices of a third of the most essential commodities increased by 40%. They were now more than twice as high as they had been in the previous month.
According to the Tasnim News Agency, Ebrahim Sadeghifar, head of Iran's Institute of Labor and Social Welfare (IILSW), 22%-27% of Iranians are now living below the poverty level.
Last week, Iran's Jomhuri-ye Eslami daily reported that the poverty rate was around 50%.
I can't pay the rent on my carpet shop, or my employees' wages. No one can afford to buy carpets. "If this situation continues, I'll have to layoff my staff," Morteza (39), said over the phone, from Tehran's Grand Bazaar. He gave only his first name.
How can they hope to resolve the economic crisis without talking to Trump? Talk to him, and you will reach an agreement. "You cannot afford to be proud on an empty stomach."
NUCLEAR RED LINE
According to Iranian state media, at least 216 protests took place in Iran during February. These included retirees and workers, as well as students, health professionals, merchants, and healthcare professionals. According to reports, the protests were mainly focused on economic hardships such as low wages and unpaid salaries for months.
Officials fear that a decline in living standards, despite the small scale of most protests, could explode.
One of the four officials who was close to the government said, "The country is a powder-keg and any further economic strains could ignite it."
The officials stated that Iran's ruling class is aware of the possibility of a return of unrest, similar to protests from 2022-2023 over the death of Mahsa Amin in custody or nationwide protests of 2019 over the rise in fuel prices.
Senior Iranian officials said that there were several high-level discussions to discuss the potential of new mass demonstrations and possible measures to prevent them.
Iranian officials, however, said that despite concerns about possible unrest, Tehran would only go so far with any discussions with Trump. They stressed that "excessive requests" such as the dismantling of Iran's nuclear program or conventional missile capability were not on the table.
The senior official stated that "yes, there is concern about increased economic pressure and there are concerns regarding the nation's anger growing, but we cannot give up our right to produce nuclear energy just because Trump wants it."
Ali Vaez is the Iran project director for International Crisis Group. He said that Iran's leaders believed that negotiations with Trump would be a sign of weakness and could lead to more pressure rather than less.
He said: "Ayatollah Khmenei appears to believe that surrendering is the only thing more dangerous than sanctions." (Reporting, Writing and Editing by Parisa Hafezi)
(source: Reuters)