2025-04-17 19:51
Stopping work on fully permitted project to have chilling effect on US industry The US has three other offshore wind projects under construction Industry seeking to resolve administration concerns over Empire Wind April 17 (Reuters) - The Trump administration's decision to halt construction of Equinor's (EQNR.OL) , opens new tab Empire Wind 1 farm off the coast of New York late on Wednesday sent shockwaves through the offshore wind industry, raising concerns that fully-permitted developments representing billions in investment are not safe. U.S. President Donald Trump had campaigned on a promise to end the offshore wind industry, arguing it is too expensive and hurts whales and birds. He issued an executive order suspending new leasing for such projects in federal waters on his first day in office. Sign up here. But in a move that extended well beyond withholding new lease auctions or slow-rolling new permit requests, Trump's Interior Secretary Doug Burgum on Wednesday ordered the Equinor project to cease construction work, suggesting the project's underlying environmental analysis was faulty. "Stopping work on the fully federally permitted Empire Wind 1 offshore project should send chills across all industries investing in and holding contracts with the United States Government," said Liz Burdock, the CEO of industry group Oceantic Network, after Burgum's order. "Preventing a permitted and financed energy project from moving forward sends a loud and clear message to all businesses - beyond those in the offshore wind industry - that their investment in the U.S. is not safe." Empire Wind's supply chain has attracted $1.6 billion in investment and supports more than 3,500 jobs, said Oceantic, which advocates for the expansion of a domestic offshore wind supply chain. The industry as a whole is expected to invest $65 billion in projects by 2030, according to a report last year by the American Clean Power Association trade group. Other industry representatives said the move jarred with the Trump administration's broader plans to expand domestic energy production. "The widening gap between rising electricity demand and available energy supply poses a serious threat to economic growth," said Turn Forward Executive Director Hillary Bright. "It is in our clear national interest to boost the deployment of valuable energy resources like offshore wind." An Interior spokesperson was not immediately available for comment. Equinor said on Wednesday it had stopped construction as requested, and would engage with the Trump administration to better understand its concerns about the project's permit. 'CHILLING EFFECT' The United States has four operating offshore wind farms. Aside from Empire Wind, another three are under construction. Two are owned by Denmark's Orsted (ORSTED.CO) , opens new tab: Sunrise Wind off the coast of New York and Revolution Wind off the coast of Rhode Island. Dominion Energy's (D.N) , opens new tab Coastal Virginia Offshore Wind is also underway. All three are expected to begin producing power next year. "Coastal Virginia Offshore Wind is more than 50% complete and remains on track to be completed at the end of 2026. Our other lease areas are potential options for future development, but we do not have any firm plans at this time," Dominion spokesperson Aaron Ruby said in an email. Orsted declined to comment. The National Ocean Industries Association, another industry group that includes offshore wind and oil drilling businesses, said it hoped to resolve any disputes with the Trump administration so it could pursue new projects. "We are committed to working closely and expeditiously with federal agencies, stakeholders, and the administration to quickly resolve any concerns and deliver energy solutions that align with national priorities," said President Erik Milito. Environmental group the League of Conservation Voters (LCV), however, said the reversal on Equinor's permit would foster uncertainty in the broader business world and undermine confidence needed for new investments. "If the government cannot be trusted to keep its word honoring permits after thorough environmental reviews, it will have a chilling effect not just against clean energy but the entire business sector," said David Shadburn, Legislative Director at LCV. "The absolute last thing the country needs is a ban on clean affordable energy." https://www.reuters.com/sustainability/climate-energy/trump-order-halt-ny-wind-project-stuns-offshore-industry-threatens-other-2025-04-17/
2025-04-17 19:27
April 17 (Reuters) - President Donald Trump has privately discussed firing Federal Reserve Chair Jerome Powell for months and talked about it with former Fed Governor Kevin Warsh, including the possibility of then selecting Warsh as Powell's replacement, the Wall Street Journal reported on Thursday. Warsh has advised against trying to fire Powell, arguing that Trump should let the Fed chair complete his term without interference, the Journal reported, citing unnamed people familiar with the matter. The report comes the same day that Trump has repeatedly lashed out at Powell, whose term as Fed chair expires in May 2026. Sign up here. Warsh served as a Fed governor from February 2006 to April 2011. He was appointed by President George W. Bush. The Journal said the discussions with Warsh took place at Trump's Mar-a-Lago estate in Florida in February, but others close to the president had discussed the matter as recently as March. Trump has not made a final decision about whether to try to fire Powell before his term ends, a matter that would likely be challenged all the way to the Supreme Court. The Federal Reserve Act of 1913 stipulates that Fed leaders may only be dismissed "for cause," and Powell himself has said his firing would not be "permitted under the law." The White House did not immediately respond to a request for comment. There was no immediate response to Reuters emails and calls to Warsh for comment. https://www.reuters.com/world/us/trump-has-discussed-firing-feds-powell-with-warsh-eyed-possibe-successor-wsj-2025-04-17/
2025-04-17 19:26
CAIRO, April 17 (Reuters) - Egypt's central bank lowered overnight interest rates by 225 basis points on Thursday, its first cut in more than five years, saying lower inflation had opened the way to yet further rate cuts in the future. The bank lowered the lending rate to 26% and the deposit rate to 25%. The median forecast in a Reuters poll of 17 analysts on Monday was for the central bank's Monetary Policy Committee to cut rates by 200 basis points. Sign up here. Annual headline inflation has been trending downwards since September 2023, when it hit record high of 38%, falling to 12.8% in February and 13.6% in March from 24.0% in January. Recent declines were "due to a sizable favorable base effect, cumulative monetary tightening, and the fading impact of previous shocks," the committee said in a statement accompanying the decision. It expected inflation to continue falling in 2025 and 2026, though at a slower rate, helped by recent and planned fiscal consolidation measures. The declining inflation availed for "ample room for commencing the easing cycle" in interest rates, it added. Economic growth also appeared to be accelerating, the committee said. "Preliminary indicators for Q1 2025 suggest a sustained recovery in economic activity for the fourth consecutive quarter, with growth exceeding the 4.3 percent registered in Q4 2024," it said. The interest rate cut was the first change in rates since March 2024, when the central bank hiked rates by 600 basis points and sharply reduced the currency's value against the dollar, measures taken as part of an $8 billion International Monetary Fund financial support package. https://www.reuters.com/markets/rates-bonds/egypt-cuts-interest-rates-first-time-since-2020-2025-04-17/
2025-04-17 19:15
April 17 (Reuters) - MP Materials (MP.N) , opens new tab, which owns the only U.S. rare earths mine, said on Thursday it has stopped shipping the critical minerals to China for processing after Beijing boosted import tariffs to 125% in response to U.S. levies, sending the company's shares down nearly 5%. The move essentially halts a major source of revenue for MP Materials, which has relied on Chinese partners for years to refine the rare earths while it ramps up processing in California. Sign up here. Rare earths are a group of 17 metals used to make magnets that turn power into motion for electric vehicles, cell phones and other electronics. China has long been the world's largest producer and earlier this month halted exports, although MP and others have been working to boost U.S. capacity. "Selling our valuable critical materials under 125% tariffs is neither commercially rational nor aligned with America's national interest," Las Vegas-based MP said in a statement. MP produces rare earths concentrate from rock that it extracts from its California mine. Most of that concentrate had been sold under a take-or-pay contract to China-based Shenghe Resources (600392.SS) , opens new tab - MP's fourth-largest shareholder - for processing. Representatives for Shenghe were not immediately available to comment. Last year MP derived more than 70% of its revenue from the sale of that concentrate. The company said on Thursday that nearly half of its rare earths concentrate is now being refined in California and sold outside China. MP is due to report quarterly earnings and provide more details on May 8. MP's move comes after U.S. President Donald Trump on Tuesday ordered a probe into potential new tariffs on all critical minerals imports, a move aimed in part at boosting U.S. minerals processing. MP said it is "in close contact with federal leaders and encouraged by their determination to support American industry," adding it will continue to produce and stockpile concentrate material while ramping up California processing. The company is also developing a rare earths magnet facility in Texas. Shares of MP's rivals also fell on Thursday, with USA Rare Earth (USAR.O) , opens new tab losing 10%, NioCorp (NB.O) , opens new tab losing 25% and Ucore (UCU.V) , opens new tab losing 15%. https://www.reuters.com/markets/commodities/mp-materials-stops-china-bound-rare-earth-shipments-over-tariffs-2025-04-17/
2025-04-17 19:14
WASHINGTON, April 17 (Reuters) - The United States expects a minerals deal being negotiated with the Democratic Republic of the Congo (DRC) will involve a range of private sector partners, State Department spokesperson Tammy Bruce said on Thursday. Washington is in the process of determining the next steps on the deal with Congo and will have more to announce in the near future, Bruce told reporters. Sign up here. https://www.reuters.com/markets/commodities/us-expects-congo-minerals-deal-involve-private-sector-partners-state-dept-says-2025-04-17/
2025-04-17 18:22
WASHINGTON, April 17 (Reuters) - International Monetary Fund Managing Director Kristalina Georgieva said on Thursday that the U.S. and China both have trade grievances, but the world's two largest economies needed to reduce uncertainty and agree on a fairer, rules-based trading system. Georgieva, speaking at an event in Washington ahead of next week's IMF and World Bank spring meetings, also welcomed India's decision to reduce trade barriers and said that tariffs elsewhere could also drop amid negotiations over President Donald Trump's tariffs. Sign up here. Georgieva refrained from directly criticizing Trump's tariff assault on its trading partners, noting that an increase in tariffs and non-tariff trade barriers were feeding negative perceptions of the multilatersl system. "This feeling of unfairness in some places fits the narrative, 'we play by the rules while others game the system without penalty,'" Georgieva said. "Trade imbalances steer trade tensions." She said that the U.S. had grievances around China's intellectual property practices and non-tariff barriers, while China is seeking U.S. engagement that would put both economies on a solid footing. "We would like to see a reduction in uncertainty, and it is hard to get there if the two largest economies are still finding their footing and when, obviously, from the perspective of the world economy, it is important that the result of all this is a more, fairer, rule-based system," Georgieva said. The IMF chief said that India was uneasy with reducing tariffs and trade barriers, but "India is now doing it." She added that this would be helpful for the country's growth prospects. She said it was possible that tariffs and other trade barriers also could come down in the European Union as well and could encourage more bilateral and plurilateral trade agreements. "Well, in injecting this moment, yes, it is bilateral discussions, but I expect this to lead to some action around reducing, eliminating barriers that could have broader benefit for the world," Georgieva said. https://www.reuters.com/markets/imfs-georgieva-says-both-us-china-have-trade-grievances-2025-04-17/
