2025-03-06 20:48

Bessent says cheap goods not essence of American Dream Tariffs seen as revenue source and negotiation tool No plans to consolidate banking regulators Financial sanctions will be used for maximum impact NEW YORK, March 6 (Reuters) - U.S. Treasury Secretary Scott Bessent on Thursday strongly defended the Trump administration's campaign to tear up global trade norms with tariffs and vowed to roll back regulations on American banks and crush Iran's economy with sanctions. In his first major speech to Wall Street executives, Bessent declared that President Donald Trump has begun an "aggressive campaign to rebalance the international economic system." He said the decades-old trading system built around U.S. demand soaking up the world's exports is broken and unsustainable and tariffs will help fix it. "Access to cheap goods is not the essence of the American dream," Bessent told the Economic Club of New York. "The American Dream is rooted in the concept that any citizen can achieve prosperity, upward mobility, and economic security. For too long, the designers of multilateral trade deals have lost sight of this." Trump's cascade of tariff actions over the past six weeks has whipsawed financial markets and prompted companies to pause some investment plans. As Bessent spoke, Trump further dialed back his 25% tariffs on Canadian and Mexican goods, providing a one month exemption for any goods that meet the rules of origin under the U.S.-Mexico-Canada Agreement on trade. But Bessent's remarks did little to slow another sell-off on Wall Street, as worries over tariffs and consumer spending pushed down major indices, with the tech-heavy Nasdaq (.IXIC) , opens new tab falling 2.6% into correction mode. Interviewed on stage by former Trump economic advisor Larry Kudlow in front of an audience that included Blackstone CEO Stephen Schwarzman and GAMCO Investors CEO Mario Gabelli, Bessent - a hedge fund billionaire himself - warned that trading partners who retaliate will face even higher duties on their U.S. exports, calling Canadian Prime Minister Justin Trudeau a "numbskull" for doing just that. "As President Trump has said many times, tariff is his favorite word. I would say that reciprocal is probably his second favorite word," Bessent said. "If you want to be a numbskull like Justin Trudeau and say, 'oh, we're going to do this,' then ... tariffs are going to go up. But if you want to sit back, have a discussion with the Commerce Department, USTR (U.S. Trade Representative) - they all have my phone number too - I am happy to have a discussion with our foreign counterpart." The U.S. has promised reciprocal tariffs starting April 2. Bessent said tariffs would deliver benefits on a number of fronts, including to lower-income families who stand to be hardest hit by the higher prices the levies will bring. Far from being a regressive tax, he said, the "substantial" revenue from tariffs will help pay for tax cuts for earners in the bottom 50%, such as no taxes on tips. 'MAXIMUM' SANCTIONS Bessent said the U.S. Treasury would no longer apply "lackadaisical" sanctions that create opportunities for circumvention. Going forward, he said U.S. sanctions would be used "explicitly and aggressively for immediate maximum impact." He called former president Joe Biden's sanctions on Russian energy "egregiously weak," saying they allowed Russia to continue financing its war in Ukraine. He added that Biden's last-minute sanctions on the Russian oil and gas sectors in January were done for political purposes, but Bessent did not mention any plans to review them. "This administration has kept the enhanced sanctions in place and will not hesitate to go 'all in' should it provide leverage in peace negotiations," Bessent said. Regarding Iran, he said the Treasury was imposing a "maximum pressure" campaign of sanctions to choke off its oil exports and put pressure on its currency. "We are going to shut down Iran's oil sector and drone manufacturing capabilities," Bessent said. "Making Iran broke again will mark the beginning of our updated sanctions policy." UNLOCKING MORE LOANS Bessent also said the Treasury would lead a "comprehensive and assertive effort" to enable banks to boost the U.S. economy. A top priority in that effort will be a "fundamental refocusing" of how the nation's regulators supervise its banks. The banking industry has long complained current bank supervision is opaque, subjective, and needlessly restrictive, and Bessent echoed those concerns, saying bank supervisors should be focused on "material financial risk rather than box-checking." Specifically, Bessent said he planned to utilize multi-agency bodies like the Financial Stability Oversight Council to steer a unified regulatory approach, and noted a recent Trump executive order gave the administration direct oversight over independent agency rule-writing. Notably, Bessent appeared to rule out consolidation of existing bank regulators, which had been rumored to be under consideration by the Trump administration, when discussing how they should operate in unison. "To be clear, this does not mean consolidation of agencies, but coordination via Treasury, such that our regulators work in parallel with each other and industry," he said. Bessent singled out the supplementary leverage ratio (SLR), which requires banks to reserve capital regardless of how much risk is on their books, as a matter requiring review. He stopped short of endorsing any particular fix, but noted the SLR should serve as a backstop, and not bind bank activities by forcing them to hold capital against safe assets like U.S. Treasury bonds or central bank reserves. Sign up here. https://www.reuters.com/business/finance/us-treasurys-bessent-says-fsoc-will-drive-regulatory-change-outlines-tariff-2025-03-06/

2025-03-06 20:41

WASHINGTON, March 6 (Reuters) - The U.S. is reviewing all existing sanctions waivers that provide Iran any degree of economic relief, and urging the Iraqi government to eliminate its dependence on Iranian sources of energy as soon as possible, the U.S. State Department spokesperson said on Thursday. State Department spokesperson Tammy Bruce made the comments at her first briefing under President Donald Trump's administration when she was asked whether a sanctions waiver that allows Iraq to pay Iran for electricity would be renewed or not. "We have nothing to announce with regard to the current electricity waiver that expires on the (March) eighth...We are reviewing all existing sanctions waivers that provide Iran any degree of economic or financial relief," she said. "We are urging the Iraqi government to eliminate its dependence on Iranian sources of energy as soon as possible, and welcome the Iraqi Prime Minister's commitment to achieve energy independence." The U.S. is using the waiver review in part to increase pressure on Baghdad to allow Kurdish crude oil exports via Turkey, according to two sources familiar with the matter. Washington wants the increased Iraqi oil to boost supply to the global market and keep prices in check, giving the U.S. more room to pursue efforts to choke off Iranian oil exports as part of a strategy to curb Iran's nuclear program. Iraq’s negotiations with the semi-autonomous Kurdish region over the oil export resumption have been fraught so far. The U.S. government has said it wants to isolate Iran from the global economy and eliminate its oil export revenues in order to slow Iran's development of a nuclear weapon. Trump's restoration of the "maximum pressure" campaign on Iran was one of his first acts after returning to office in late January. The U.S. has imposed a range of sanctions on Tehran over its nuclear program and support for militant organizations, effectively banning countries that do business with Iran from doing business with the U.S. Iran views its neighbor and ally Iraq, a key partner to both the U.S. and Iran, as vital for keeping its economy afloat amidst sanctions. Sign up here. https://www.reuters.com/world/middle-east/state-dept-says-all-waivers-providing-iran-economic-relief-are-under-review-2025-03-06/

2025-03-06 20:39

March 7 (Reuters) - The Perth Mint's gold product sales jumped in February, while silver sales rose 16% from the previous month, the refiner said on Friday, driven by strong demand. WHY IT IS IMPORTANT The Perth Mint, owned by the government of Western Australia, is the world's leading producer of newly mined gold. It is also the largest refiner by volume in Australia, according to its website. Each year, it processes nearly 75% of Australia's newly mined gold, making it a significant player in one of the world's top gold-producing countries. BY THE NUMBERS Sales of gold coins and minted bars rose to 25,103 ounces in February, up 35% from January. On a year-on-year basis, they were down 47%. Silver product sales increased to 482,451 ounces in February. KEY QUOTES "It is heartening to see the increase in sales on January levels given precious metals prices remain at record highs," said Neil Vance, Perth Mint's general manager of minted products. CONTEXT Concerns about U.S. President Donald Trump's tariff measures have driven up the prices of safe-haven gold to 11 record highs this year, peaking at $2,956.15 on February 24, and culminating in an overall year-to-date gain of 11.2%. Meanwhile, silver gained over 13% so far this year. The following table details Perth Mint's monthly sales including coins and minted bars: Sign up here. https://www.reuters.com/markets/commodities/perth-mints-gold-silver-sales-rise-february-2025-03-06/

2025-03-06 20:18

GEORGETOWN, March 6 (Reuters) - Guyana's Natural Resources ministry has ordered the country's tax agency to begin a dispute resolution with Exxon Mobil (XOM.N) , opens new tab over the recovery of some $214 million in expenses registered by the U.S. oil major. Expenses reported by Exxon as part of its operations at the massive Stabroek offshore block are closely monitored because a consortium led by the U.S. major can take and export up to 75% of the crude it produces as "cost oil", while Guyana's government is entitled to half of the remaining barrels. The government has followed mechanisms included in the contract to have the expenses audited by external consultancy firms and determine if they were correctly reported. The ministry's request follows the completion of an audit by U.S.-based consultancy IHS Markit covering expenses in the 1999-2017 period, which was reviewed by the government. "The Guyana Revenue Authority provided to the ministry a 'no objection' to IHS' recommendation to adjust the cost bank by $214.4 million. This position remains unchanged and clear, and Exxon was so advised," the ministry said in a release. Exxon did not immediately reply to a request for comment. By the end of January, the Exxon-led consortium, which controls all oil and gas output in Guyana, had recovered $33.9 billion of the $41.1 billion spent in the area, the country's Vice President, Bharrat Jagdeo, told Reuters last week. A second audit ordered by the government to firm VHE Consulting covering expenses from 2018 to 2020 is still ongoing, the ministry said, adding that Exxon replied on its initial findings and VHE is now reviewing the response. Sign up here. https://www.reuters.com/business/energy/guyanas-tax-agency-begin-dispute-resolution-with-exxon-over-expenses-2025-03-06/

2025-03-06 20:16

GEORGETOWN, March 6 (Reuters) - An international arbitration court will hear a dispute between Guyana and a consortium led by U.S. firm Lindsayca over a project awarded to build a gas-fueled power plant and a natural gas liquids plant, the government said on Thursday. The 300-megawatt power plant included in the project was expected to be inaugurated in the third quarter this year, but the consortium said it got access to the site late, which has delayed construction for about three months. The International Chamber of Commerce will hear Guyana's government, Lindsayca and CH4 Systems over the delays, the energy ministry said in a release. The project is expected to lower electricity generation costs in the South American country. "It started off with what they claim was a delay in handing over the site," Vice President Bharrat Jagdeo told Reuters in an interview last month, referring to the Lindsayca group's argument. A consortium led by U.S. major Exxon Mobil (XOM.N) , opens new tab that controls all oil and gas output in Guyana was responsible for building a pipeline to supply the gas that will feed the power plant. The $1 billion line was completed last year. "Exxon was responsible for preparing this site... so they were delayed," Jagdeo added. Despite the dispute, the transmission lines and substations linked to the power plant are "significantly advanced, with completion anticipated by mid-year," the ministry said in the release. "Both parties remain committed to expediting the power plant and natural gas liquids (NGL) plant, aiming to ensure the timely relocation of the gas and steam turbines, which are already in Guyana," it added. Sign up here. https://www.reuters.com/business/energy/dispute-over-energy-project-guyana-be-discussed-through-arbitration-2025-03-06/

2025-03-06 19:57

March 6 (Reuters) - Venture Global (VG.N) , opens new tab said on Thursday it would expand the total production capacity of its Plaquemines LNG plant in Louisiana to 45 million tonnes per annum (mtpa), up from the current 27 mtpa, with an additional investment of $18 billion. The company, which became one of the most valuable U.S. LNG companies when it listed in January, had earlier in the day raised its estimates for the cost to build the initial phases of Plaquemines by around $2 billion. The new third phase of expansion will consist of 24 trains, adding to the current 36 trains at the LNG plant, and will bring Venture Global's total investment in both current and planned projects in Louisiana to over $75 billion, CEO Mike Sable said. The company expects a final investment decision on the expansion to come after the first production at its CP2 export plant in Louisiana. The company is locked in contract disputes with customers such as BP (BP.L) , opens new tab, Shell (SHEL.L) , opens new tab and Edison (EDNn.MI) , opens new tab over non-receipt of cargoes from its Calcasieu Pass due to lengthy testing and optimizing process before commercial operation. Sign up here. https://www.reuters.com/business/energy/venture-global-announces-18-billion-expansion-plaquemines-lng-plant-2025-03-06/