2025-02-19 23:53

MIAMI, Feb 19 (Reuters) - U.S. President Donald Trump on Wednesday said he is going to work with Republicans in Congress to significantly reduce taxes for individuals and companies. "We're going to dramatically cut taxes for families and for workers and for companies, including no tax on tips and hopefully no tax on Social Security and no tax on overtime," Trump said at a conference hosted by Saudi Arabia's sovereign wealth fund in Miami. Trump said his plan will also cut taxes on domestic producers of oil and gas, and allow companies to expense 100% of investments in new domestic factory construction and other capital expenses. "If you buy something that is going to be good for our country, we're going to let you expense it," Trump said. Sign up here. https://www.reuters.com/world/us/trump-says-hell-work-with-republicans-congress-dramatically-cut-taxes-2025-02-19/

2025-02-19 23:48

Lumber could see 25% tariffs in early April Trump sees tariffs raising big revenues ABOARD AIR FORCE ONE, Feb 19 (Reuters) - U.S. President Donald Trump said on Wednesday he will announce fresh tariffs over the next month or sooner, adding lumber and forest products to previously announced plans to impose duties on imported cars, semiconductors and pharmaceuticals. "I'm going to be announcing tariffs on cars and semiconductors and chips and pharmaceuticals, drugs and pharmaceuticals and lumber, probably, and some other things over the next month or sooner," Trump said at a conference in Miami. Speaking to reporters on Air Force One as he traveled back to Washington, Trump said he was thinking about a 25% tariff on lumber and forest products, to take effect around April 2, when a tariff on autos of around the same amount is expected. He said he expected tariffs to generate large revenues for the United States, but also offered countries a reprieve if they lowered or removed their own tariffs on U.S. goods. Trump on Tuesday said he also intends to impose similar duties on semiconductors and pharmaceuticals, the latest in a series of measures threatening to upend international trade. Those tariffs would also start at "25% or higher", rising substantially over the course of a year. He did not provide a date for announcing those duties and said he wanted to provide some time for drug and chip makers to set up U.S. factories so they can avoid tariffs. Since returning to office four weeks ago, Trump has imposed an additional 10% tariff on all imports from China over China's failure to halt fentanyl trafficking. He also announced, and then delayed for a month, 25% tariffs on goods from Mexico and non-energy imports from Canada. Last week, he unveiled plans to slap reciprocal tariffs on all countries that have tariffs on U.S. goods or set up non-tariff barriers to limit U.S. access to their markets. EU trade chief Maros Sefcovic met with U.S. counterparts - Commerce Secretary Howard Lutnick, Trump's nominee to be U.S. Trade Representative Jamieson Greer and National Economic Council director Kevin Hassett - in Washington on Wednesday to discuss the various tariffs facing U.S. trading partners. Trump's threats have changed over time, leaving other nations and businesses unclear of what is to come next. Some economists and experts have warned Trump's sweeping tariffs will stoke inflation. Sign up here. https://www.reuters.com/world/us/trump-says-he-will-announce-range-tariffs-over-next-month-or-sooner-2025-02-19/

2025-02-19 23:44

Exxon plans to meet Chilean officials to discuss lithium projects SLB's New Energy unit explores potential collaborations in Chile Chile aims to boost lithium output via state and private investments SANTIAGO, Feb 19 (Reuters) - U.S. oil major Exxon Mobil (XOM.N) , opens new tab is planning a meeting with Chilean officials to discuss lithium investment opportunities, according to a registry of lobbyist meetings and a person familiar with the matter, as fossil fuel companies increasingly look to invest in production of the metal needed for electric vehicle batteries. Top U.S. oilfield services company SLB (SLB.N) , opens new tab, which is similarly expanding into lithium, also recently met with Chilean mining officials, according to the registry and the source. The meetings reveal the first known details of interest from the companies to seek opportunities in Chile, the world's second-biggest lithium producer, where output currently comes from just two companies in the Atacama salt flat. The government is working to boost production, both through efforts spearheaded by state-run copper giant Codelco, and by encouraging private investment. Oil and gas companies, under pressure to reduce carbon emissions from operations, see parallels between conventional oil and gas drilling methods and lithium extraction from brine, which is the form of production used in Chile. In January, a Chilean representative for Exxon met with mining ministry officials to discuss an upcoming visit by executives "interested in lithium projects in Chile," according to a registry of lobbyist meetings. The registry did not provide further details. The source with knowledge of the meeting said the visit was expected in the coming months. Asked about interest in Chile, Exxon said in a statement, "we have collaborations and investments all over the world," and noted it was consistently evaluating opportunities in the energy sector. In late 2023, the top U.S. oil producer announced plans to produce lithium in the U.S. with the goal of supplying the ultralight metal to EV makers and becoming a top global producer. It told Reuters it was studying where else in the world it could produce lithium. Exxon is also working to use an innovative method to separate the metal from brine, known as direct lithium extraction (DLE), which Chile has called for as a way to mitigate environmental impacts. Also in January, SLB Head of Mining Nicholas Lugansky met with a top Chilean mining official to discuss the New Energy unit, which includes lithium projects. The meeting's aim was to "explore potential collaborations with Chile and its state and private companies," according to the lobbyist registry. SLB in September was one of eight companies selected to test its lithium extraction technology in the Altoandinos salt flats in northern Chile. SLB declined to comment, and Chile's mining ministry declined to comment on both companies. Chile's lithium output currently comes from Chile's SQM (SQMA.SN) , opens new tab and U.S. miner Albemarle (ALB.N) , opens new tab. Sign up here. https://www.reuters.com/markets/commodities/exxon-slb-flag-interest-lithium-projects-chile-document-source-say-2025-02-19/

2025-02-19 23:23

Fortescue reports 53% drop in profit, misses estimates Shares down over 6% Feb 20 (Reuters) - Fortescue (FMG.AX) , opens new tab on Thursday reported a drop in first-half profit and said it was reconsidering timeframes for some of its green energy projects as a pause in grants by the United States was leading to funding uncertainty. The miner also revised its full-year forecast for its green energy unit's capital expenditure to $400 million from its previously provided forecast of $500 million. "Market conditions are uncertain, with the Trump Administration instructing federal agencies to pause grant payments under the Inflation Reduction Act," the company said for its green energy projects. In July last year, the miner said the unit, Fortescue Energy, was unlikely to meet its target of producing 15 million metric tons of green hydrogen by 2030. Green iron is produced by reducing iron ore using hydrogen gas, which is then converted into steel in an electric arc furnace. "Market will want to see Energy capex (capital expenditure) and opex (operating expenditure) cut further," analysts at Citi said in a note. The world's fourth-largest iron ore miner said underlying attributable net profit after tax dropped 53% to $1.55 billion for the six months ended December 31, as prices of iron ore moderated due to weak demand from China's struggling property sector and high portside inventories. That missed a Visible Alpha consensus estimate of $1.76 billion. It also declared an interim dividend of A$0.50 per share, which was 7% lower than the consensus. Shares of the miner fell 6.7% to A$18.14 in early trading. Fortescue added its Iron Bridge facility was on track to achieve fiscal 2025 target for shipments of 5 to 9 metric tonnes (Mt). Sign up here. https://www.reuters.com/markets/commodities/australias-fortescue-posts-slump-first-half-profit-2025-02-19/

2025-02-19 23:19

FY underlying earnings down 8% to $10.87 billion FY dividend of $4.02 per share lowest since 2019 Iron ore operating earnings fall 19%, copper rises 75% LONDON/MELBOURNE, Feb 19 (Reuters) - Rio Tinto (RIO.AX) , opens new tab, (RIO.L) , opens new tab does not support a push by some shareholders to consolidate the company's dual-exchange share listing in Sydney, its CEO told Reuters on Wednesday as the miner reported its lowest full-year underlying earnings in five years. Rio in a separate statement recommended its shareholders in London vote against a resolution requesting a review of its dual-listed structure at its annual general meeting in April. Shareholder pressure forced top listed miner BHP (BHP.AX) , opens new tab to review its dual listing structure and ultimately consolidate it in Australia in 2022. "We are a global company, we have global investors, and London kind of works for us. I just don't believe that you're going to change fundamentally your value by (swapping) exchange," CEO Jakob Stausholm said in an interview. Activist investor Palliser Capital and more than 100 other shareholders in December sought a shareholder resolution calling for Rio's dual-listed model to be reviewed and urged the miner to keep only its listing in Australia. Their reasoning is that such a move would bolster the company's share price. Some companies have left London in recent years for the United States or other markets, under pressure from investors seeking to boost the value of their shares. Miner and commodity trader Glencore said on Wednesday that it was studying moving its primary listing to another exchange. Rio, the world's largest iron ore producer, reported underlying earnings of $10.87 billion for 2024, compared with $11.76 billion a year ago , opens new tab. Visible Alpha consensus was for $11 billion. Sydney-based portfolio manager Andy Forster of Argo Investments said he did not have a strong view on the listing structure, but he liked Rio's full-year dividend of $4.02 a share even though it was the lowest since 2019. The 60% payout ratio - the top end of the miner's long-term dividend policy payout range of 40% to 60% - "shows confidence in growth to grow earnings to be able to maintain payout and fund capex," he said. Rio's Australian-listed shares fell 2% in early trading on Thursday, in line with weakness across diversified miners. Iron ore prices moderated last year on weak demand from China's struggling property sector and high port-side inventories, which dented the miner's earnings from the raw material used in steelmaking and offset growth in its copper and aluminium segments. Underlying operating earnings for Rio's iron ore division fell 19% for the year, while its aluminium business posted a 61% increase in annual underlying operating earnings. Meanwhile, the ramp-up at the Oyu Tolgoi mine in Mongolia, a strong performance at Escondida in Chile and higher refined copper production at Kennecott in Utah following the restart of the smelter led to a 75% rise in underlying operating earnings for the company's copper business. Rio, which derives most of its profits from iron ore but is increasingly focused on copper, declared a final ordinary dividend of $2.25 per share, below last year's $2.58. Rio expects total losses of 13 million metric tons of iron ore from tropical cyclones that have hit Australia's west coast and snarled iron ore shipments so far this year. "Production guidance has remained the same, even on iron ore, but the company has run out of wiggle room for catching up on Pilbara iron ore volumes if there are any more interruptions at the port," RBC Capital Markets analysts said in a note. The company expects Pilbara iron ore unit cash costs on a free-on-board basis to be between $23 and $24.5 per wet metric ton for the current year, slightly higher than the unit cost of $23 per ton last year. Also in Australia, Stausholm told reporters Rio would decide the future of its Tomago aluminium smelter, which is struggling due to high power prices, by mid-year. Sign up here. https://www.reuters.com/markets/commodities/rio-tinto-reports-smallest-full-year-profit-five-years-2025-02-19/

2025-02-19 23:18

ISTANBUL/CHICAGO, Feb 19 (Reuters) - Turkey has begun exporting around 15,000 tonnes of eggs to the United States as a devastating outbreak of bird flu is slashing U.S. production and sending prices soaring, a leading sector official said on Wednesday. Deaths of millions of laying hens imperil U.S. President Donald Trump's pledge to bring down everyday costs, as grocery stores ration supplies and restaurants raise prices for egg dishes. Shipments to the U.S. from Turkey began this month and will continue until July, said Ibrahim Afyon, chairman of the Egg Producers Central Union in Turkey. "The export will take place through our member companies with the required authorizations, while two firms will coordinate the process," Afyon said. "A total of 15,000 tonnes of eggs — equivalent to 700 containers — will be shipped," he added. The U.S. has been working to contain bird flu, which was first detected in dairy cattle in Texas last March and has since spread to more than 970 herds in 17 states. The virus has infected nearly 70 people since April, primarily farm workers exposed to infected poultry or cattle. One person who was infected died. The outbreak in poultry began in 2022 and has wiped out about 162 million chickens, turkeys and other birds, according to U.S. data. A surge in recent infections is fuelling egg shortages. "We support the temporary import of egg products to help ease the strain on the U.S. egg supply," said Chad Gregory, CEO of United Egg Producers, a cooperative that represents U.S. egg farmers. Faced with supply constraints, U.S. companies have sought alternative import markets, leading to negotiations with Turkish producers, Afyon said. The deal is expected to generate around $26 million in export revenue, he added. Turkey ranks among the world's top 10 egg exporters, Afyon said. The U.S. Department of Agriculture had no comment on imports. The agency is rebuilding a stockpile of bird flu vaccines for poultry and granted a conditional license to animal health company Zoetis (ZTS.N) , opens new tab for a vaccine for chickens. USDA has not yet authorized the use of vaccines. Sign up here. https://www.reuters.com/markets/commodities/turkey-export-15000-tonnes-eggs-us-amid-bird-flu-disruptions-2025-02-19/