2025-05-22 13:47
US Treasury holds major stakes in Fannie Mae and Freddie Mac Ackman's Pershing Square holds 10% of Fannie shares Fannie, Freddie OTC shares surged after Trump's election May 22 (Reuters) - Over-the-counter (OTC) shares in Fannie Mae (FNMA.PK) , opens new tab and Freddie Mac (FMCC.PK) , opens new tab jumped to highest since 2008 on Thursday after U.S. President Donald Trump said he was considering taking the U.S. mortgage finance firms public. The United States Treasury owns preferred shares in the firms and warrants to purchase about 80% of their common stock, a holdover from a rescue during the 2008 housing loan crisis. Sign up here. The spinoffs would be a win for conservatives who have long advocated for privatising government-affiliated firms, such as the U.S. Postal Service and passenger rail operator Amtrak. But moving housing loans outside the government umbrella could raise mortgage costs for home buyers. In a post on Truth Social, Trump said he was "giving very serious consideration" to the spin-off and would decide in the near future. He added he would speak on the matter with Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Federal Housing Finance Director William Pulte and others. Fannie shares were up 33% at $9.94, while Freddie shares rose 27% at $7.15. The U.S. government could get a windfall of more than $250 billion from a listing of the housing lenders, James E. Thorne, chief market strategist of Wellington-Atlus Private Wealth, said on X. It may also be a boon to Trump ally Bill Ackman, whose Pershing Square Capital Management (PSHP.L) , opens new tab is the biggest holder of Fannie's public OTC shares with about 10%, according to LSEG data. Capital Research Global Investors, a unit of the Capital Group, holds about 7.7% of Freddie, the biggest single stake, and 8.8% of Fannie. The two companies have a combined market value of about $12.3 billion. Their shares, which don't trade on major exchanges, have surged more than 260% in the past year, with most of those gains following the November election of Trump, who unsuccessfully pushed to sell off the companies during his first term. Fannie (FNMA.PK) , opens new tab, formally known as the Federal National Mortgage Association, and Freddie (FMCC.PK) , opens new tab, the Federal Home Loan Mortgage Corp., operate as for-profit firms with private shareholders. They were created by Congress to expand the national home lending market by buying home loans from private lenders and repackaging them as mortgage-backed securities. Fannie and Freddie suffered overwhelming losses when the U.S. housing market collapsed during the sub-prime mortgage crisis in 2007-2008. Fearing an economic catastrophe, U.S. authorities placed them in conservatorship under the newly created Federal Housing Finance Agency. The companies returned to profitability in 2012 and by 2017 had repaid all the loans they received from the federal government. "Fannie Mae and Freddie Mac are doing very well, throwing off a lot of CASH, and the time would seem to be right," Trump said in his social media post. In February, Bessent said the release of Fannie and Freddie from their conservatorship would depend on mortgage rate implications. Effectively reprivatising the firms may also put them in line for a credit downgrade, as they would "no longer be quasi-sovereign paper," Tolou Capital Management founder Spencer Hakimian said on X. That could in turn lead to an increase in mortgage rates for homebuyers, he added. https://www.reuters.com/business/fannie-freddie-otc-shares-soar-after-trump-comments-spin-off-2025-05-22/
2025-05-22 12:48
STOCKHOLM, May 22 (Reuters) - Swedish automotive battery maker Northvolt, which declared bankruptcy in March, plans to wind down its remaining battery cell production in the Nordic country by the end of June, its trustee said on Thursday. Northvolt filed for bankruptcy in Sweden on March 12, making it one of the country's largest corporate failures and effectively ending Europe's best hope of developing a rival to challenge China. Sign up here. While the search for a buyer of the Swedish battery cell making business continued, there was no realistic prospect for a purchaser to assume control in the near term, bankruptcy trustee Mikael Kubu said in a statement on Thursday. "A gradual wind-down of battery cell production in Northvolt Ett will be initiated, with the objective of ceasing production by 30 June," Kubu said, referring to the company's plant in the Swedish town of Skelleftea, its main business. At the same time, there are interested parties and potential buyers for various business operations within the Northvolt group, and negotiations are ongoing at varying stages of progress, the bankruptcy trustee added. Northvolt said at the time of the March filing that its plant in northern Sweden would continue to run in the short term. It later received financial guarantees from key stakeholders to maintain a scaled-down continuation of its operations. The EV battery maker initially sought U.S. Chapter 11 bankruptcy protection in November as its cash pile dwindled and it scrambled to secure funds, but it eventually failed to raise the cash needed. https://www.reuters.com/business/energy/northvolt-wind-down-battery-making-operation-sweden-by-end-june-2025-05-22/
2025-05-22 12:45
May 22 (Reuters) - Shares of U.S. solar companies fell sharply in premarket trade on Thursday after the House of Representatives advanced President Donald Trump's sweeping tax and spending bill, which may end numerous green-energy subsidies that have supported the renewable energy sector. Sunrun (RUN.O) , opens new tab led the market rout, with shares falling as much as 33%, Complete Solaria (SPWR.O) , opens new tab fell nearly 22% while Enphase Energy (ENPH.O) , opens new tab, Maxeon Solar (MAXN.O) , opens new tab and SolarEdge Technologies (SEDG.O) , opens new tab dipped between 10% and 15.6%. Sign up here. Shares of JinkoSolar (JKS.N) , opens new tab fell 2.3%, while First Solar (FSLR.O) , opens new tab and Canadian Solar (CSIQ.O) , opens new tab dropped 6.5% and 10%, respectively. Trump's budget package - which he calls "one big beautiful bill" - would eliminate funding established under the Biden Administration’s Inflation Reduction Act and repeal grants intended to reduce air pollution, greenhouse gas emissions or purchase electric heavy-duty vehicles. The bill would remove the 30% federal tax credit for taxpayers who install solar rooftop systems, posing a significant challenge to the industry. While the industry anticipated the gradual phase-out of wind and solar tax credits, the new version of the bill accelerates this timeline, Raymond James analyst Pavel Molchanov told Reuters. As per the new proposed timeline, solar or wind projects must begin construction within 60 days of the bill’s enactment and finish construction by year-end 2028. Otherwise, they will no longer be eligible for tax credits. Clean energy stakeholders now turn their attention to the Senate, where the bill is headed next before it is sent to the president, hoping it will reverse many of the proposed revisions to the IRA. "While the bill is in the Senate, the solar and wind industries will actively lobby to reverse the new changes made by the House," Molchanov added. https://www.reuters.com/sustainability/climate-energy/solar-stocks-plummet-after-trumps-tax-bill-advances-us-house-2025-05-22/
2025-05-22 12:34
Rubio post on X contradicts special envoy's statement Special envoy Grenell had said license would be extended Chevron shipped some 240,000 bpd of Venezuelan oil to US through March WASHINGTON, May 22 (Reuters) - Oil producer Chevron's (CVX.N) , opens new tab U.S. license to operate in Venezuela will expire on May 27 as planned, Secretary of State Marco Rubio said in a post on his personal X account. Rubio's post contradicted U.S. special envoy Richard Grenell's contention on Tuesday following a meeting with a Venezuelan top official that a 60-day extension of the license would be granted. Rubio's brief post did not mention the talks. Sign up here. "The pro-Maduro Biden oil license in #Venezuela will expire as scheduled next Tuesday May 27," Rubio said in his post late on Wednesday. The U.S. company's license to do business in the South American country is set to expire next week once a wind-down period granted to complete transactions expires, but most partners of Venezuela's sanctioned state-run oil firm PDVSA have requested extensions. U.S. President Donald Trump said in February he would revoke the license issued by his predecessor Joe Biden more than two years ago. Trump accused President Nicolas Maduro of not making progress on electoral reforms and migrant returns. Following Grenell's trip to the Caribbean island of Antigua this week, which allowed the release of an American that had been jailed for months in Venezuela, the U.S. State Department issued guidance to the Treasury Department objecting to the extension, four sources close to the decision told Reuters. Any extension would need to be approved by the U.S. Treasury and State Departments. The State Department provides guidance for the Treasury to rule on any changes to sanction regimes. Venezuela has some of the world's largest reserves of oil, but its crude output remains at a fraction of what it was a decade ago after a lack of investment, mismanagement at PDVSA and U.S. sanctions on Venezuela's energy industry since 2019. The licenses to Chevron and other foreign firms in Venezuela have allowed a slight recovery in oil output and exports since 2023. Maduro and his government have always rejected sanctions by the U.S. and others, saying they amount to an "economic war" designed to cripple Venezuela. Maduro and his allies have cheered what they say is the country's resilience and have blamed some economic hardships and shortages on sanctions. The State Department did not immediately reply to a request for comment on Rubio's post. The Treasury's Office of Foreign Assets Control, which administers sanctions, declined to comment. Chevron did not immediately respond to a request for comment. Even if granted, a 60-day extension for Chevron to wind down operations in Venezuela would not necessarily lead to the resumption of its exports of Venezuelan oil to the U.S. PDVSA canceled cargoes to the company in April over payment uncertainty, a situation that has not been resolved. Chevron must pay royalties, taxes and a portion of its joint ventures' operative expenses in Venezuela in order to get access to crude cargoes. https://www.reuters.com/business/energy/rubio-says-oil-license-venezuela-will-expire-may-27-2025-05-22/
2025-05-22 12:18
BRUSSELS, May 22 - Commodities from just four countries will face the strictest checks under the European Union's anti-deforestation law, with major forest nations including Brazil and Indonesia spared the toughest rules. The European Commission said in an act published on Thursday that the law would categorise goods imported from Belarus, Myanmar, North Korea and Russia as having a "high risk" of fuelling deforestation. Sign up here. Countries including Brazil and Indonesia, which have historically had among the world's highest rates of deforestation, will be labelled as "standard risk" - which means they will face lighter compliance checks on goods exported to Europe. The world-first law will impose due diligence requirements on companies placing products including soy, beef, palm oil, timber, cocoa, coffee and chocolate onto the EU market. It has been staunchly opposed by countries including Brazil and Indonesia, who say it is burdensome and costly. A key difference between the groups is that EU countries will be required to carry out compliance checks covering 9% of companies exporting from high-risk countries, 3% from standard-risk countries and 1% for low-risk countries. The United States was among the countries labelled as "low-risk", meaning its companies must still collect information on their supply chains, but not assess and address deforestation risks. Companies in high risk and standard risk countries will need to show when and where the commodities were produced and provide "verifiable" information that they were not grown on land deforested after 2020. Indonesia Palm Oil Association, GAPKI, said the EU should have branded the world's largest palm oil exporter Indonesia as a low-risk country, along with the U.S., China, Thailand and Australia. "The EU did not see Indonesia's achievement in significantly reduced deforestation rate in recent years," GAPKI secretary general Hadi Sugeng Wahyudiono said, adding that due diligence on shipments would increase cost and reduce palm oil's competitiveness. Campaigners criticised the EU decision to impose the strictest checks on only four nations, but said even lower-risk countries would face some, albeit simpler, due diligence obligations. "In practice, this shouldn't undermine the power of this law to save forests," said Giulia Bondi, campaigner at non-profit group Global Witness. Rainforest Foundation Norway (RFN) was less optimistic and urged the EU to strengthen controls. "It is simply unbelievable that Brazil, responsible for 42% of tropical forest loss in 2024, more than a doubling since the previous year, is not rated as high risk," said RFN director Toerris Jaeger, citing a recent report from Global Forest Watch. The Commission said it had labelled countries based on scientific evidence and data. The EU law will apply from the end of 2025 for large companies, and from June 2026 for small firms. Failure to comply could result in fines of up to 4% of a company's turnover in an EU country. https://www.reuters.com/sustainability/climate-energy/eu-brands-just-four-countries-high-risk-under-deforestation-law-2025-05-22/
2025-05-22 12:05
Top-25 meme coin holders to enjoy private VIP reception with Trump Democratic lawmakers demand attendee names, citing foreign influence concerns Profits favor big investors, smaller wallets face significant losses STERLING, Virginia, May 22 (Reuters) - Buyers of President Donald Trump’s meme coin converged from around the globe on Thursday for an exclusive dinner at his private country club, overlooking the Potomac River, just outside the nation’s capital. With guests filing into the event, and President Trump arriving by Marine One helicopter, more than a hundred protesters at the Trump National Golf Club crowded along the edge of the parking lot along the street. Signs included, “America is not for sale,” “stop crypto corruption," and “release the guest list." Sign up here. Among those in attendance is China-born crypto entrepreneur and billionaire Justin Sun, who posted a video of himself, underscored by triumphant music, entering the ballroom and dressed in a tux. Sun won first place in the dinner contest with his $18.5 million wallet, and is also the largest publicly known investor and an adviser to World Liberty Financial, the Trump family's crypto platform, which has made them hundreds of millions of dollars. On Wednesday, Sun also posted a video of himself visiting the Executive Office Building, part of the White House complex. In February, the U.S. Securities and Exchange Commission paused its 2023 fraud case against Sun, citing public interest. Sun declined to comment but posted on X that he is "grateful for the invitation." The SEC declined to comment. In total, investors spent an estimated $148 million on the $TRUMP meme coin to secure their seats at the dinner, with the top-25 holders spending more than $111 million, according to crypto intelligence firm Inca Digital. These top holders will enjoy a private VIP reception with Trump, and the four largest investors will also receive a limited edition Trump Tourbillon watch that sells for $100,000. A company controlled by the Trump family and a second firm together hold 80% of the remaining supply of $TRUMP coins, and have so far earned $320.19 million in fees, including at least $1.35 million after the dinner announcement, according to blockchain analytics firm Chainalysis. More than half of the 220 holders at the black-tie event are likely based outside the United States, according to blockchain analysis. In response to criticisms about Trump using his office to enrich himself from the meme coin, White House spokeswoman Karoline Leavitt said Thursday: "All of the president's assets are in a blind trust, which is managed by his children. And I would argue, one of the many reasons that the American people re-elected this president back to this office is because he was a very successful businessman before giving it up to publicly serve our country." She also said that, "The president is attending it in his personal time. It is not a White House dinner. It's not taking place here at the White House." The Trump Organization did not respond to requests for comment. Vincent Liu, chief investment officer of Taiwan-based crypto market maker Kronos Research, said he had hopes of networking with other top holders and even possibly meeting the president. “That kind of access is rare, and it represents how digital assets are entering the mainstream.” PRIVATE COCKTAIL RECEPTION Sheldon Zia, founder of the Cayman Islands-based crypto exchange BitMart, posted on X that, as a top-25 holder, he was heading to not just the dinner but also to a private VIP cocktail reception before the dinner and a private VIP tour the following day. An initial announcement said the 25 VIPs–the majority of their identities so far unknown–would tour the White House. That detail has since been deleted from the $TRUMP meme website (www.gettrumpmemes.com). There are also domestic Trump supporters such as Vincent Deriu, a 27-year-old New York consultant who said he already owns “many” Trump-branded watches, “a few pairs of” Trump sneakers, and “more than 50” Trump NFTs. Deriu will join the dinner on Thursday, for $116,000. Senior Democratic members of the House and Senate held a press conference earlier Thursday to highlight what they describe as Trump’s corrupt crypto practices and to push for legislation that would ban such activities. “Donald Trump’s dinner is an orgy of corruption,” said Massachusetts Senator Elizabeth Warren. Connecticut Senator Chris Murphy noted the anonymity of attendees. “Reportedly, there’s going to be a guy there tonight called Ogle,” Murphy said. “That’s it. That’s all we know about this guy. He wears a mask all the time." When reached for comment by Reuters, Ogle, a crypto security specialist, said that he uses a pseudonym and appears in video interviews with his face obscured by a bandana and sunglasses to protect himself because of safety concerns related to his pro bono work, in which he says he has helped victims of crypto criminals recover more than half a billion dollars. Ogle said Murphy's accusations were "misplaced." "My motive for attending this dinner is very straightforward," said Ogle, who also serves as an advisor to Trump's cryptocurrency platform, World Liberty Financial. "I'm curious by nature, I believe it will be an historic moment, and I'm fortunate to have the opportunity to go." Ogle came in at number 22 in the contest, and holds a total of $3.6 million worth of the $TRUMP coin. Democratic lawmakers have introduced a flurry of bills aimed at ending the ability of presidents and members of Congress to own or oversee businesses that issue or promote crypto products. Given that Republicans have majority control of both the U.S. House and Senate, the Democratic Party has limited ability to pass legislation and call for public hearings or formal investigations. Of all of the Trump family’s cascade of new crypto ventures – which now include a crypto exchange, a stablecoin, a bitcoin mining operation and digital asset ETFs – the meme coin has sparked particularly strident criticism from Democratic lawmakers and government watchdog groups, who have decried it as “a race to the bottom for presidential grifting.” Now, even some Trump allies are starting to weigh in, with Republican Senator Cynthia Lummis, a robust and staunch crypto industry advocate, saying the dinner gives her “pause.” Since the $TRUMP meme coin launched in January, the profits have favored big investors: more than 60 large wallets have profited close to $1.5 billion, with $48 million in profits occurring after Trump posted about the contest on social media, according to reviews by Inca Digital and crypto analytics tracker Bubblemaps, as of May 8. Meanwhile, about 600,000 other smaller wallets have lost $3.87 billion so far, with $117 million of the losses occurring after the dinner announcement. The event was set to cap off with an after-party, called "Meme The Night," thrown by a Singapore-based meme-coin engagement company MemeCore. MemeCore's co-founder, who goes by the name Ice, traversed the planet to attend the dinner after spending more than $16 million to come in second place. https://www.reuters.com/world/us/trump-draws-global-crypto-investors-with-148-million-meme-coin-dinner-2025-05-22/
