2025-07-07 22:38
July 7 (Reuters) - U.S. President Donald Trump on Monday directed federal agencies to strengthen provisions in the One Big Beautiful Bill Act that repeal or modify tax credits for solar and wind energy projects. In an executive order, Trump said the renewable energy resources were unreliable, expensive, displaced more dependable energy sources, were dependent on foreign-controlled supply chains and were harmful to the natural environment and electric grid. Sign up here. The order directs the Treasury department to enforce the phaseout of tax credits for wind and solar projects that were rolled back in the budget bill passed by Congress and signed into law by Trump last week. It also directs the Interior department to review and revise any policies that favor renewables over other energy sources. Both agencies are required to submit a report to the White House within 45 days detailing actions taken. The One Big Beautiful Bill Act effectively ends renewable energy tax credits after 2026 if projects have not started construction. Wind and solar projects whose construction starts after that must be placed in service by the end of 2027. Under previous law, project developers would have been able to claim a 30% tax credit through 2032. https://www.reuters.com/legal/government/trump-executive-order-seeks-end-wind-solar-energy-subsidies-2025-07-07/
2025-07-07 22:29
July 8 (Reuters) - Europe's car industry could return to producing 16.8 million cars a year, equalling its post-2008 crisis peak, if the European Union maintains its 2035 clean cars target and implements policies to support the transition, a study published by campaign group Transport & Environment showed on Tuesday. Conversely, deploying no industrial strategy and going back on the 2035 target that all new cars and vans sold in the EU no longer emit carbon dioxide could result in a loss of 1 million auto industry jobs and two-thirds of planned battery investments, T&E said in a statement. Sign up here. WHY IT'S IMPORTANT Already challenged by high costs in their home markets and a gap to Chinese and U.S. rivals in the electric vehicle industry, European carmakers now face the effects of U.S. President Donald Trump's 25% tariffs on auto imports, which have pushed many manufacturers to pull their forecasts for 2025. Following heavy lobbying, the European Parliament gave its backing to a softening some of the EU CO2 emissions targets for cars and vans in May, but it has so far stuck the regulations that will bar the sale of fossil-fuel cars by 2035. KEY QUOTES "It's a make or break moment for Europe's automotive industry as the global competition to lead the production of electric cars, batteries and chargers is immense," Julia Poliscanova, Senior Director for Vehicles & Emobility Supply Chains at T&E, said in the statement. BY THE NUMBERS If the 2035 goal is maintained and policies to boost domestic EV production are implemented, the automotive value chain's contribution to the European economy would grow 11% by 2035, the advocacy group said. Job displacement in vehicle manufacturing could be offset by the creation of more than 100,000 jobs in battery making by 2030 and 120,000 in charging by 2035, it added. Weakening the goal alongside lack of comprehensive industrial policies meanwhile could slash the value chain's contribution by 90 billion euros ($105.5 billion) by 2035, the report said. ($1 = 0.8529 euros) https://www.reuters.com/sustainability/climate-energy/abandoning-eus-2035-zero-emission-car-target-would-risk-1-million-jobs-study-2025-07-07/
2025-07-07 22:23
July 7 (Reuters) - Canadian gold and copper miner Aura Minerals (ORA.TO) , opens new tab is preparing to list its shares on the Nasdaq, the company said on Monday, in a move that could fetch the company a valuation of $2.14 billion. The company is seeking to raise around $210 million, if it were to price its public offering of common shares near their July 4 closing price on the Toronto Stock Exchange. Sign up here. Many foreign companies list in U.S. to secure higher valuations and tap deeper capital markets. Uncertainty around U.S. President Donald Trump's tariff policies rattled investors and froze new listings, but sentiment is shifting as new listings gain momentum. Proceeds from Aura's U.S. offering will be used for strengthening business, including incremental liquidity and financial flexibility to support its strategic growth initiatives. Aura Minerals plans to sell 8.1 million shares, and expects to list on the Nasdaq under the symbol "AUGO". Founded in 1946, the gold and copper mining company is focused on project development and operations in the Americas. BofA Securities and Goldman Sachs are serving as global coordinators for the offering, while BTG Pactual and Itau BBA are acting as joint bookrunners. https://www.reuters.com/world/americas/canadas-aura-minerals-prepares-nasdaq-listing-targets-21-billion-valuation-2025-07-07/
2025-07-07 21:58
July 7 - TRADING DAY Making sense of the forces driving global markets Sign up here. By Alden Bentley, Editor in Charge, Americas Finance and Markets Jamie is enjoying some well-deserved time off, but the Reuters markets team will still keep you up to date on what moved markets today and we'll take a close look at how markets are digesting the latest U.S. tariff headlines and how they reacted to Tesla CEO Elon Musk's move to reclaim political influence. I'd love to hear from you so please feel free to reach out at [email protected] , opens new tab Today's Key Market Moves Today's key reads US signals trade announcements imminent as deadline looms Tesla slides as Musk's 'America Party' heightens investor worries Tesla short sellers set to pocket about $1.4 billion in profits after stock slump Trump says will impose 25% tariffs on Japan, South Korea Tariff headlines and moving deadlines Wall Street paused its bull run to start Monday on the back foot bracing for a barrage of tariff headlines before Wednesday, which U.S. President Donald Trump set as the expiration of a postponement he declared in the wake of the April 2 "Liberation Day" meltdown. While last week's record highs for the S&P 500 (.SPX) , opens new tab and Nasdaq (.IXIC) , opens new tab suggest that markets are learning to take the White House's fluid trade tactics in stride, they did pull back even more at midday after Trump said that from August 1 he will impose 25% tariffs on Japan and South Korea, two of the U.S.'s most stalwart trade allies who have yet to reach trade deals with Trump. Trump has promised to notify countries that haven't reached deals by the July 9 deadline of what their new tariffs will be as of August 1, which now becomes the next big calendar notation for investors. Treasury Secretary Scott Bessent said more trade announcements were likely by Wednesday. Monday's pullback aside, the stock market has more than recovered from the April panic, riding out numerous other potential major risks, from Trump's threats to fire Fed Chair Jerome Powell, to the U.S. bombing of Iran nuclear sites to last week's passage of the "Big Beautiful Bill" that economists predict will add trillions to the U.S. debt, any tariff revenue notwithstanding. Only the dollar remains deep underwater. Although it bounced nicely on Monday, it is off 7% against the euro since April 2, and the broader dollar index is down about 6%, while the S&P 500 is up 9.5%. The 10-year Treasury note's benchmark yield is only about 20 basis points higher than its April 2 close, having weathered global concern that the U.S. was no longer a safe place to be invested. Speaking of the "big beautiful" tax bill, Tesla CEO and former-Trump-ally- turned enemy Elon Musk declared it would bankrupt America and announced the formation of a third U.S. political party, the America Party. Investors immediately tanked Tesla shares, which also weighed on Wall Street, recalling how his stint running Trump's Department of Government Efficiency was a costly distraction from the business of making electric vehicles and rockets. What could move markets tomorrow? Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles , opens new tab, is committed to integrity, independence, and freedom from bias. Trading Day is also sent by email every weekday morning. Think your friend or colleague should know about us? Forward this newsletter to them. They can also sign up here. https://www.reuters.com/world/china/global-markets-trading-day-2025-07-07/
2025-07-07 21:35
July 7 (Reuters) - U.S. power outages could double in five years if suppliers fail to add capacity during peak demand, the Department of Energy said on Monday. "Blackouts could increase by 100% in 2030 if the U.S. continues to shutter reliable power sources," DOE noted in a report on grid reliability and security. Sign up here. It cited green policies of the Biden administration as a major reason for the retirement of power plants and the delay in approving their replacements. The gap between electricity demand and supply is widening, particularly as artificial intelligence drives the need for more power-hungry data centers, it added. The department said it expects 209 gigawatts of new electricity generation to be added by 2030 to replace 104 GW of plant retirements, but only 22 GW of the new energy will come from power sources that provide stable and continuous power supply, raising outage risk in several regions. https://www.reuters.com/business/energy/lack-new-us-power-capacity-could-double-blackouts-by-2030-says-energy-department-2025-07-07/
2025-07-07 21:33
Chevron prepares severance option for Hess workers pending deal close Companies still await outcome of arbitration case with Exxon Chevron, Hess IT teams work to prepare integration HOUSTON, July 7 (Reuters) - Chevron (CVX.N) , opens new tab is laying the groundwork to swiftly close its planned acquisition of smaller oil producer Hess (HES.N) , opens new tab, according to two sources and an industry analyst, including by preparing a severance program for some Hess workers. The preparations come as both companies await a decision in a legal challenge from larger rival Exxon Mobil (XOM.N) , opens new tab that will make or break the $53 billion deal. Sign up here. Completing the Hess acquisition is key to Chevron CEO Mike Wirth's strategy. Chevron would gain Hess' 30% interest in the Stabroek oilfield block in Guyana, which is operated by Exxon and holds more than 11 billion barrels of oil equivalent, providing a critical addition to Chevron's declining oil and gas reserves. Chevron has assigned roles in its information technology team to work on the Hess integration, according to an internal organizational chart that Reuters reviewed. Members of that team have met regularly with counterparts at Hess in recent months to prepare logistics of combining the two companies, said one Chevron employee and a second source familiar with the meetings. Both sources declined to be named while discussing the confidential work. Representatives from Chevron have also held several town hall meetings with Hess staff, the second source said. Hess employees were informed they could request a severance package if they are not interested in a position with the combined company, according to a written notice to staff that was seen by Reuters. Chevron is in the midst of a restructuring that includes laying off up to 20% of its workforce, and Hess had about 1,800 employees at the end of 2024. The preparations are intended to help Chevron with ambitious targets for closing the deal. The company aims to legally close the acquisition within 48 hours of resolving the arbitration and complete operational aspects of absorbing the company within 45 days, one of the sources said. It can typically take several months for companies to close an acquisition after a deal is announced. Exxon, for example, announced it planned to acquire Pioneer Natural Resources in October 2023 and closed the deal in May last year. "We look forward to completing the transaction and welcoming Hess to our company," a Chevron spokesperson said in a statement. Hess declined to comment. Chevron initially expected to close the Hess acquisition in the first half of 2024. That was delayed due to arbitration claims from Exxon and CNOOC (600938.SS) , opens new tab, the other minority partner in the Guyana joint venture, who argue that they have a contractual right of first refusal to purchase Hess' stake in the Stabroek block. Hess and Chevron argue the clause does not apply to the sale of the whole company. If they lose the arbitration or are unable to agree on an acceptable resolution with Exxon and CNOOC, the acquisition would fail, according to the terms of the deal. Biraj Borkhataria, an analyst with RBC Capital Markets, met with Chevron Chief Financial Officer Eimear Bonner in June and said the executive acknowledged that the lengthy arbitration dispute has weighed on the company's stock price, but also said the time has allowed for integration planning. Bonner indicated Chevron could close the deal quickly after resolving the arbitration dispute, Borkhataria said in an interview. A three-member arbitration panel that reviewed the dispute over the Stabroek block has reached a decision, Reuters reported on Thursday. The Paris-based International Chamber of Commerce, which is overseeing the arbitration case, is now reviewing the decision before it is released to the parties. https://www.reuters.com/business/energy/chevron-preps-quick-closing-hess-deal-awaits-result-exxon-dispute-2025-07-07/
