2025-07-23 22:37
Australia satisfied with US measures, minister says Curbs lifted after extensive risk review Trump in April singled out trade disparity with Australian beef SYDNEY, July 24 (Reuters) - Australia lifted on Thursday strict biosecurity restrictions on beef imports from the U.S. after an extensive scientific and risk review, likely removing a key concern for U.S. President Donald Trump's administration over bilateral trade. Agriculture Minister Julie Collins said Australia was satisfied with the measures put in place by the United States to effectively manage biosecurity risks. Sign up here. "The U.S. Beef Imports Review has undergone a rigorous science and risk-based assessment over the past decade," Collins said in a statement. "The ... government will never compromise on biosecurity." News of Australia lifting the curbs was first reported by the Australian Financial Review. The report said Australia will use the easing of rules to argue its case for the United States to wind back 50% tariffs on steel and aluminium and Trump's threat to impose a 200% tariff on pharmaceuticals. Trump in April singled out the beef trade disparity after Australia's beef exports to the United States surged last year, reaching A$4 billion ($2.64 billion) amid a slump in U.S. beef production. Prime Minister Anthony Albanese in April had ruled out relaxing Australia's strict biosecurity rules during tariff talks with the United States. Since 2003, Australia has curbed entry of U.S. beef after detecting bovine spongiform encephalopathy, or mad cow disease. It lifted some restrictions in 2019. Australia allows entry if the cattle were born, raised, and slaughtered in the United States, though few shippers can prove these requirements, as cattle frequently move between the United States, Canada, and Mexico. The United States has introduced more tracking methods since last year to identify and trace all cattle from Mexico and Canada to the farm and through the supply chain. Australia views its strict biosecurity rules as safeguarding its disease-free cattle, helping it preserve access to lucrative markets such as Japan and South Korea, while Australian beef is prized by U.S. fast-food chains for its lower fat content and competitive prices. ($1 = 1.5152 Australian dollars) https://www.reuters.com/world/americas/australia-lifts-biosecurity-curbs-us-beef-amid-tariff-talks-2025-07-23/
2025-07-23 22:29
July 23 (Reuters) - Packaging Corp of America (PKG.N) , opens new tab forecast third-quarter profit below Wall Street estimates on Wednesday, hurt by rising freight costs and weak export containerboard sales amid global trade uncertainty. The Lake Forest, Illinois-based company specializes in delivering paper and packaging products catering to a range of sectors, including the food and beverage industry, paper manufacturing, and retail commerce. Sign up here. While demand for packaging goods is recovering from a post-pandemic slowdown, sticky inflation and cautious consumer sentiment have pressured sales, especially while its customers navigate trade uncertainties due to tariffs. CEO Mark Kowlzan said pricing in both packaging and paper will remain flat in the third quarter, while freight costs will rise due to higher rail rates. The company expects third-quarter profit of $2.80 per share, compared with analysts' average estimate of $2.92 per share, according to LSEG data. Packaging Corp's net sales rose slightly to $2.17 billion in the quarter ended June 30, from $2.07 billion a year earlier. Analysts on average estimated $2.19 billion, according to data compiled by LSEG. Its adjusted profit for the second quarter came in at $2.48 per share, compared with estimates of $2.44. https://www.reuters.com/markets/commodities/packaging-corp-forecasts-profit-below-estimates-export-freight-pressures-2025-07-23/
2025-07-23 22:05
July 23 (Reuters) - Canadian miner First Quantum Minerals (FM.TO) , opens new tab said on Wednesday it expects costs associated with the maintenance plan for its closed copper mine in Panama will increase to roughly $17 million to $18 million per month. In May, Panama approved the company's preservation and safe management plan (P&SM), which allowed it to export copper concentrate stored at the site as well as to restart a power plant at Cobre Panama. Sign up here. The site had been shut in 2023 after massive protests from local residents over environmental issues. The mine's closure, which had contributed 1% to global copper production, has had an impact on both Panama's and the company's financial prospects. First Quantum began shipments of the 120,000 metric tons of copper left at the site in June. The final shipment is expected to be dispatched soon, the company said on Wednesday, putting an end to uncertainty over the stockpiled copper. During the second quarter, maintenance costs related to the Cobre Panama mine averaged roughly $15 million per month. The plan also allows for import of fuel to help restart Cobre Panama's thermoelectric power plant, which is expected in the fourth quarter of 2025. First Quantum said that the up to $3 million rise in P&SM costs could be partially offset by the potential sale of excess power to support Panama's national grid. https://www.reuters.com/business/energy/first-quantum-expects-rise-cobre-panama-maintenance-costs-2025-07-23/
2025-07-23 22:03
ECB awaits outcome of US-EU trade talks Trump's threatened 30% tariff steeper than ECB expected Rumoured 15% tariff closer to ECB baseline One further rate cut seen as likely by year-end FRANKFURT, July 24 (Reuters) - The European Central Bank was set to keep interest rates on hold on Thursday, pausing after seven straight cuts as it waited for the fog surrounding Europe's trade relations with the United States to clear. The ECB has halved its policy rate from 4% to 2% in the space of just one year after taming a surge in prices that followed the end of the COVID-19 pandemic and Russia's invasion of Ukraine. Sign up here. With inflation now back at its 2% goal and expected to stay there, euro zone central bankers were likely to stay put this week and observe what kind of tariffs President Donald Trump's U.S. administration would impose on the European Union after an August 1 deadline for talks, all 84 economists polled by Reuters said. The tense and unpredictable trade talks between Washington and Brussels have made policy-making difficult. Trump's threat to impose a 30% duty on EU goods exported to the U.S. - a steeper tariff than the ECB had anticipated under even the most negative of three scenarios it released last month - has forced ECB President Christine Lagarde and her colleagues on the Governing Council to contemplate lower outcomes for growth and inflation. However, two diplomats said on Wednesday the EU and the U.S. were heading towards a deal that would result in a broad tariff of 15% applying to EU goods, an outcome lying closer to the ECB's baseline scenario than the severe possibility. "If the two sides indeed conclude such a deal, it would support our call that the euro zone economy can regain momentum from the fourth quarter onwards and that the ECB will not need to cut rates further," Berenberg economist Holger Schmieding said. Among the deals that have been struck so far and could serve as a template for the EU, Japan negotiated a 15% tariff rate, Indonesia 20% and Britain, which runs a trade deficit with the United States, 10%. "The key point is that tariffs look likely to be higher and more varied across countries than the 10% flat baseline that many had assumed would be the end-point of tariff negotiations," BNP Paribas's head of developed markets economics Paul Hollingsworth said. The ECB assumes that U.S. tariffs will push down growth and, if there is no EU retaliation, inflation over the medium term. This is why markets and most economists are still betting on at least one more interest rate cut, probably towards the end of the year, as inflation is now at risk of going too low. The euro zone economy is already barely growing and companies, while still optimistic about an upturn ahead, are starting to feel the pinch from tariffs on their profits. Even the ECB's own projections see price growth dipping below 2% for the next 18 months, raising the prospect of undershooting. "More challenging may be the end of the year, when we see inflation dropping below 1.5% and staying thereabouts for most of 2026," Societe Generale's Anatoli Annenkov said. "Here we see risks that inflation expectations follow inflation lower, forcing the ECB to take action to anchor inflation expectations." On the other hand, banks have seen rising loan demand and policy uncertainty has not yet translated into an economic or market downturn. After a short-lived selloff in April investors have taken the trade turmoil in their stride, with European equity indices close to new highs also thanks to Germany's newly found appetite for spending. In fact, erratic policy-making in the United States, including Trump's relentless criticism of the Federal Reserve, has lured foreign investors to euro zone assets, briefly pushing the euro to the highest level against the dollar since September 2021 at $1.1829 earlier this month. ECB board member and outspoken hawk Isabel Schnabel even said the central bank should watch out for price hikes caused by tariffs and the bar for further cuts was "very high". But the euro's appreciation has unnerved other policymakers, who fear a stronger currency would make European exports less competitive and contribute to pushing down inflation. "On that front, we would expect Christine Lagarde to strike a reassuring tone, reminding people that the ECB does not target exchange rates but that any resulting downward pressure on inflation will be addressed, if necessary," Julien Lafargue, chief market strategist at Barclays Private Bank, said. https://www.reuters.com/business/finance/ecb-keep-rates-steady-trade-conflict-clouds-economic-outlook-2025-07-23/
2025-07-23 21:54
Rare for states to broker sale of privately-owned infrastructure Closure could increase gasoline prices, already highest in U.S HF Sinclair among those approached; held talks last year for deal NEW YORK, July 23 (Reuters) - California government officials are trying to find a buyer for Valero Energy's (VLO.N) , opens new tab Benicia refinery near San Francisco, three sources familiar with the matter said, an unusual effort as the clock ticks down on the company's planned closure of the facility in April. The rare attempt by a state government to broker the sale of privately-owned infrastructure reflects its growing concerns over protecting fuel supplies in the most populous U.S. state and keeping a lid on prices, where California's nearly 28 million drivers already pay among the highest prices for gasoline in the country. Sign up here. California's effort to save the refinery from closing also marks a shift from the focus of government policy in recent years to champion green initiatives and restrict fossil fuel usage, that has led to an often tense relationship between the state and oil companies, including the second-largest U.S. refiner by capacity. The state's primary energy and policy planning agency, the California Energy Commission (CEC), has actively sought buyers for the plant, three sources told Reuters, speaking on condition of anonymity to discuss private deliberations. The CEC declined to say whether it is engaged directly with buyers for the facility but acknowledged it is working to ensure the facility remains open. "CEC is engaging with market players to explore pathways for the continued operation of in-state refineries," the agency said in an emailed statement. Valero, which reports earnings on Thursday, did not respond to comment requests. Earlier this year, Valero announced its intention to cease operations by April 2026 at the 145,000-barrel-per-day San Francisco-area refinery amid worries about California's declining fuel supplies and high gasoline prices. The San Antonio, Texas-based refiner is also reviewing whether to continue operations at the rest of its refineries in California, including the 91,300-bpd Wilmington plant near Los Angeles. This comes after Phillips 66 (PSX.N) , opens new tab said last October it will shut its Los Angeles-area refinery due to "market dynamics" and begin in October winding down operations at the 139,000-bpd plant. The two refineries, combined, produce roughly 17% of the state's gasoline supply. Their shutting, alongside other closures and refineries converted to produce renewable fuels, like Phillips 66's Rodeo facility last year, will leave California even more dependent on more expensive fuel imports that would further drive up prices. Average regular gasoline prices in California on Wednesday were $4.484 per gallon, the highest in the nation, according to industry group AAA. The average U.S. price was $3.155 per gallon. Studies by the University of California Davis and the University of Southern California said, respectively, the refinery closures could push average prices to $6 and $8 per gallon. BUYER UNIVERSE Industry experts have said getting an agreement in place by the planned April closure of Benicia could be difficult. A thorough sale process, including adequate time for bidders to do due diligence and negotiate an agreeable price, traditionally takes place over several months. Even once an agreement is reached, refinery sales typically take between three to six months to close. "It would be a pretty aggressive timeline to get it done," said Skip York, chief energy strategist at Turner, Mason & Co. Among the parties contacted by CEC about Benicia is HF Sinclair(DINO.N) , opens new tab, a source said. The refiner and fuel distributor was in talks with Valero last summer about acquiring Benicia, but negotiations collapsed over an environmental issue at the plant, two people familiar with the matter said. HF Sinclair did not respond to requests for comment. The CEC has also contacted parties that have owned fuel-producing plants in Europe, a source said. The European Union's strict environmental standards would make them more agreeable to operating in California, multiple sources added. The state government's climate-first agenda has brought California into conflict with American energy companies, which have criticized state policies for creating difficult business conditions and pushing up pump prices. There have also been tensions between California's green agenda and the federal government. Last month, U.S. President Donald Trump signed a congressional resolution to the state's landmark plan to end the sale of gasoline-only vehicles by 2035. California and 10 other states have sued to the repeal. California's energy regulator last month recommended new rules to encourage more private investment in fuel imports and a pause on refiner profit limits in response to Governor Gavin Newsom's call for reliable fuel supplies and a bid to save the struggling refiners in the state. Newsom's office declined to comment. https://www.reuters.com/sustainability/climate-energy/rare-move-california-steps-find-buyer-valero-refinery-avoid-closure-sources-say-2025-07-23/
2025-07-23 21:45
Farmers opposed due to eminent domain petitions Project backed by Invenergy for solar and wind power Clashed with administration's stance on renewables White House previously praised $1.7 billion Invenergy investment Project faced decade-long development before loan termination WASHINGTON, July 23 (Reuters) - The administration of President Donald Trump on Wednesday axed a loan guarantee for the Grain Belt Express transmission project to send power from wind and solar energy projects in Kansas to cities in the Midwest and East. American farmers had opposed the conditional $4.9 billion loan guarantee that was initiated by the administration of former President Joe Biden, mainly due to the Grain Belt filing dozens of eminent domain, or compulsory acquisition, petitions against state landowners. Sign up here. The 800-mile (1,290 km) project by privately held Invenergy was described by the company as the second-longest transmission line in U.S. history and a national "energy security backbone" that would connect four grid regions, including the PJM Interconnection, the largest U.S. grid spanning states from Illinois to New Jersey. The Department of Energy's Loan Programs Office, or LPO, issued the conditional loan guarantee in November. The department said in a release on Wednesday it found the conditions necessary to issue the guarantee were unlikely to be met and "it is not critical for the federal government to have a role in supporting this project." Invenergy said it would finance the project privately. "While we are disappointed about the LPO loan guarantee, a privately financed Grain Belt Express transmission superhighway will advance President Trump’s agenda of American energy and technology dominance while delivering billions of dollars in energy cost savings, strengthening grid reliability and resiliency, and creating thousands of American jobs," a project spokesperson said in an emailed statement. Jigar Shah, who led the office that approved the loan guarantee during the Biden administration, said the cancellation was against the law. "This decision is illegal," Shah said in a post on LinkedIn. "When the Loan Programs Office (LPO) applicant meets all of the requirements that are set for the conditional commitment, then the Department of Energy is obligated to close the loan." The White House on May 9 had praised a $1.7 billion Invenergy investment in the project in a "list of wins" that bolster the U.S. economy and enhance national security. But Grain Belt also jarred with the administration's opposition to renewable energy sources, which it views as unreliable and expensive compared to fossil fuels. Environmental group Sierra Club said the decision would increase electricity costs in a state that is dependent on coal-fired power. "This reeks of desperation to satisfy political interests at the expense of Missouri families and businesses throughout the state that may have to pay higher electric rates because of this decision,” said Gretchen Waddell-Barwick, director of the Sierra Club's Missouri chapter. Trump only tapped the LPO for nuclear power in his first term. The Energy Department has said it is reviewing loans, including the $85 billion in closed loans and conditional commitments LPO made between the day Trump won the election in November to the day he came back into office in January. https://www.reuters.com/business/energy/trump-axes-loan-grain-belt-power-transmission-project-2025-07-23/
