2025-02-19 00:31

WASHINGTON, Feb 18 (Reuters) - The U.S. Senate voted on Tuesday 51-45 to confirm President Donald Trump's nominee Howard Lutnick, the billionaire chairman and CEO of Wall Street firm Cantor Fitzgerald, to run the Commerce Department. The Commerce Department, which has 47,000 employees, is responsible for U.S. export controls, anti-dumping and anti-subsidy duties, weather forecasting, fisheries, economic data and promotion of investment in the United States. It also has oversight for the $52.7 billion CHIPS and Science semiconductor manufacturing and research subsidy program, and a $42 billion program to expand high-speed broadband to areas with little or no service. Trump earlier said he had designated Lutnick as the leader of his trade policy. Lutnick told senators he has advised Trump to pursue across-the-board tariffs country-by-country to restore "reciprocity" to America's trading relationships. Last week, Reuters reported the White House is seeking to renegotiate CHIPS awards and has signaled delays to some upcoming semiconductor disbursements. Lutnick told senators the CHIPS program is "an excellent downpayment" to rebuild the sector in the U.S., but needs to be reviewed. Lutnick is worth $1.5 billion, according to Forbes. Lutnick has said he will review year-old restrictions on firearms exports put in place by former President Joe Biden's administration, aimed at preventing foreign criminal groups from acquiring U.S. guns. Lutnick wants to improve U.S. access to Canada's largely closed dairy market and would work to protect the U.S. market from fisheries imports from Russia and China. Senate Commerce Committee chair Ted Cruz said Lutnick will focus on issues including expanding commercial access to wireless spectrum and "will ensure American taxpayer dollars are spent efficiently and that Congress gets ‘the benefit of the bargain’ on legislation like the CHIPS and Science Act." Lutnick said last month Chinese AI startup DeepSeek had misappropriated U.S. technology to create a "dirt cheap" AI model and vowed to impose new restrictions on Beijing's technology access. Sign up here. https://www.reuters.com/world/us/us-senate-confirms-cantor-fitzgeralds-lutnick-head-commerce-department-2025-02-18/

2025-02-19 00:27

WELLINGTON, Feb 19 (Reuters) - Growing ties between Cook Islands and China, including a new comprehensive partnership agreement action plan detailed this week, have raised concerns in New Zealand, which has a close constitutional relationship with its tiny Pacific neighbour. WHAT ARE THE COOK ISLANDS? The Cook Islands are a group of 15 small islands and atolls halfway between New Zealand and Hawaii, scattered across 2 million square km of resource-rich Pacific Ocean. Since 1965, the Cook Islands has been a country in free association with New Zealand. Its citizens have New Zealand passports and all the perks of that – access to New Zealand's healthcare and education system and the ability to work there. It is permitted an independent foreign policy, but the two countries are required to consult on security, defence and foreign policy issues. Its population of 15,040 is dwarfed by more than 90,000 who identify as Cook Island Maori and who live in New Zealand. Now designated a high-income country so no longer eligible for international Official Development Assistance, the small economy relies on tourism - mostly from New Zealand - which collapsed during the COVID-19 pandemic. China and the Cook Islands established diplomatic relations in 1997 and in 2018 upgraded it to a comprehensive regional strategic partnership with other Pacific island states. WHAT IS THE AGREEMENT? The agreement signed by Cook Islands Prime Minister Mark Brown and Chinese Premier Li Qiang outlines a number of areas the two countries will improve cooperation including education, the economy, infrastructure, fisheries, disaster management and seabed mining. Anna Powles, associate professor at Centre for Defence and Security Studies at Massey University, highlighted enhanced cooperation in areas of hydrography and geospatial research, which has direct military applications. It also aims for improved cultural ties, but no debt or explicit security ties are included in the deal. A number of memorandums of understanding were also signed during the visit and these have not been released publicly. WHAT HAS WORRIED NEW ZEALAND? New Zealand has complained about a lack of transparency around the agreements signed by Brown with a China that has become significantly more assertive in the Pacific in recent years. Australia and the United States have pushed back against China's increased Pacific presence, boosting funding in the region and signing onto new strategic partnerships. While New Zealand has also boosted aid, it cannot compete financially with China. It has touted its strong diplomatic and cultural ties in the region as a crucial advantage, an argument potentially undermined by the unilateral actions of the Cook Islands. New Zealand is concerned the Cook Islands government's push for more autonomy, including an effort to issue its own passports, means it is getting all the benefits of independence while still being part of New Zealand. The Cook Islands has also wanted to join the United Nations, which New Zealand won't allow. Under the new agreement, China says it will support the Cook Islands' aspirations to expand its membership of international organisations. "This is where China is driving a wedge between the Cook Islands and New Zealand and exploiting Prime Minister Mark Brown's desire or aspiration for increased independence from New Zealand," Powles said. WHAT DOES CHINA WANT? The Cook Islands has huge untapped seabed mineral resources and is at the forefront of exploring this as yet unproven industry. The country’s Seabed Minerals Authority estimates there are 6.7 billion tonnes of mineral-rich nodules on its sea floor, which could yield 20 million metric tons of cobalt along with significant amounts of nickel, copper, manganese, iron and rare earth elements needed for tech products and the clean energy transition. Chinese companies, which dominate the global supply of many such materials, has not been granted one of three exploration licences in Cook Islands waters, but the agreement envisages "further cooperation within the seabed minerals sector". Additionally, the Cook Islands is a member of international organisations including the Pacific Islands Forum, which China has built ties in recent years, and the agreement pledges to support each other in multilateral forums. WHAT IS AT STAKE FOR COOK ISLANDERS? Closer ties to China provide opportunities for a new stream of tourists and trade as well as technical and/or financial support to develop the seabed mining sector. However, if the relationship with New Zealand were to worsen further, there is potential that a referendum over the future of the Cook Islands constitution would be needed. Protests were held in the capital Avarua on Monday in support of remaining in free association with New Zealand and opposition party members have filed a motion of no confidence against Brown, which will be voted after February 25. “I've always viewed New Zealand as a good partner and neighbour,” said Tina Browne, the leader of the opposition. “Why are we risking damaging that relationship?” Sign up here. https://www.reuters.com/world/asia-pacific/what-is-cook-islands-deal-with-china-what-has-worried-nz-2025-02-19/

2025-02-19 00:01

Jiangsu told customers it would halt exports of lithium processing tech from February 1 China announced a proposal for export controls last month Proposal is having a "chilling effect" across industry, lawyer says Feb 18 (Reuters) - A Chinese company has stopped exporting a piece of equipment used to process the electric vehicle battery metal lithium, in the clearest sign yet manufacturers are already implementing export controls proposed by Beijing. Jiangsu Jiuwu Hi-Tech (300631.SZ) , opens new tab told customers last month it would stop exporting a piece of filtration equipment known as a sorbent from February 1, according to a source with direct knowledge of the matter and documents seen by Reuters. China is the world's largest producer of sorbents, used to extract lithium from brines or other solutions containing the battery metal, although its market size can be difficult to ascertain given Beijing's reticence to share data, analysts say. The decision by Jiangsu shows Beijing's threat, made public in January, to restrict the export of some battery and lithium technology, including sorbents, is changing behaviour even though the change is for now only a proposal. If approved, companies would need government licenses for overseas sales. An executive at another lithium extraction technology company, also speaking on condition of anonymity, said Jiangsu and Sunresin New Materials (300487.SZ) , opens new tab, another major sorbent producer, are negotiating with the government over the proposal. Representatives for Jiangsu and Sunresin did not respond to questions from Reuters. Sunresin's chairman said a month ago the company's overseas expansion plans included transferring technology to customers. Beijing has not publicly discussed the proposal since it was released last month. Some in the industry consider it is already a deterrent to exporting listed items to unfriendly countries. A China-based international lawyer with clients in the clean energy industry said it was having a "chilling effect". Officials with China's Ministry of Commerce have visited several companies to discuss the proposal and in one case, warned against proceeding with a $1 billion export deal that is being negotiated, the lawyer said, speaking on condition of anonymity because of the sensitivity of the issue. Banks are also asking for extra approvals before signing off on export finance for items on the list, the person added. China's Ministry of Commerce did not respond to questions from Reuters. While it is unclear how restrictive the curbs would be if implemented, the proposal alone underscores Beijing's willingness to use its dominance of the mining and processing of lithium and many other critical minerals as leverage in its escalating trade war with Washington. China's antimony export ban, announced last December, has already affected the Western auto market, Reuters has reported. A spokesperson for Tianqi Lithium Energy Australia, the joint venture between China's Tianqi (002466.SZ) , opens new tab and Australia's IGO (IGO.AX) , opens new tab that controls the world's largest lithium mine and a major lithium refinery, said it was taking advice on Beijing's export proposal and considering its options. BUILDING AN ALTERNATIVE SUPPLY CHAIN In the near term, any disruption of Chinese sorbent exports may affect plans by Western oil producers to extract lithium from their operations by limiting their technological options. Among them, Exxon Mobil (XOM.N) , opens new tab has studied the potential use of Chinese processing equipment at its planned lithium operations, in the U.S. state of Arkansas, two sources familiar with the plans said. Exxon declined to comment. Koch Industries, the largest investor in Arkansas lithium developer Standard Lithium (SLI.V) , opens new tab, agreed in 2023 to use sorbents from China's Xi'an Lanshen New Material Technology in its North American operations. A representative for Koch declined to comment. Several Western sorbent producers say they may be able to take market share, although none of them has the market experience of Chinese rivals and their equipment has yet to reach commercial production. "We have to completely change the technologies and innovate in production and processing, and we have to do it without being beholden to China, which has a 20-year head start and controls the game," said Brian Menell, CEO of TechMet, which invests in Western mining companies and lithium equipment producers. Francis Wedin, chairman of Vulcan Energy Resources (VUL.AX) , opens new tab, which has developed its own sorbent technology that it plans to use in Germany, said would-be lithium producers were lining up for help. "Over the past few weeks we've gotten inundated by companies wanting to approach us and buy our sorbent and license the technology," he said declining to name the companies but saying they included large lithium companies from North and South America. Sign up here. https://www.reuters.com/technology/chinese-lithium-company-halts-tech-exports-trade-tensions-build-2025-02-18/

2025-02-18 23:20

Underlying profit drops 16%, misses analyst forecasts Barossa expected to deliver first gas in September quarter Santos targets final investment decisions on projects in PNG in next 12-14 months SYDNEY, Feb 19 (Reuters) - Australian oil and gas producer Santos (STO.AX) , opens new tab reported a steeper-than-expected drop in annual profit and slashed its dividend by 41% on Wednesday, but remained confident it was reaching an "inflection point" as major growth projects neared completion. Santos shares sank 4.5%, underperforming a 0.7% fall in the benchmark S&P/ASX 200. Its underlying profit fell nearly 16% to $1.2 billion for the 12 months to December 2024, below the Visible Alpha consensus of $1.32 billion. It declared a final dividend of 10.3 cents per share, down from 17.5 cents a year earlier. The country's no.2 independent gas producer attributed the earnings decline to lower oil and gas prices, supply chain disruptions, and slowing demand in China. Lower gas output in Western Australia and declining volumes from the Bayu-Undan field in the Timor Sea weighed on production, which totalled 87.1 million barrels for the year. However, CEO Kevin Gallagher and chair Keith Spence told investors that Santos would begin to see returns from its Barossa gas and Pikka oil projects after a heavy investment cycle. “As Santos reaches an inflection point in 2025, with new production to come online, we will remain focused on driving our low cost disciplined operating model to deliver free cash flow to drive shareholder returns,” they said in a statement. Santos said its $4.3 billion Barossa project, long-delayed due to concerns over its impact on Indigenous communities, was now 91% complete and on track to deliver first gas in the September quarter of this fiscal year. The Adelaide-based company also said it was seeing "strong progress" at the Pikka phase one project in Alaska, with first oil on track for mid-2026. An early start-up was also possible subject to weather and logistics, it said. Gallagher told investors that annual production would be boosted by over 30% in two years with Barossa and Pikka coming online. The projects, alongside a $100 million-$150 million cost-cutting plan, would free up cash to pursue “high quality” backfill and sustainable growth options, the company said. Santos said it planned to start appraisal drilling in 2026 for shale gas in the Beetaloo Basin in northern Australia, which could supply either its Gladstone Liquefied Natural Gas (GLNG) or the Darwin Liquefied Natural Gas (DLNG) plant. In Papua New Guinea, it said it was aiming for final investment decisions in the next 12-14 months on the Papua LNG and P’nyang gas projects and the Agogo Production Facility tie-in project that would supply gas to PNG LNG. Santos has said it will distribute 60% of free cash flow to shareholders from 2026, up from its previous dividend policy of returning 40%. ($1 = 1.5760 Australian dollars) Sign up here. https://www.reuters.com/business/energy/australias-santos-posts-16-drop-annual-profit-2025-02-18/

2025-02-18 22:55

Feb 19 (Reuters) - BHP Group (BHP.AX) , opens new tab, the world's largest listed miner, on Wednesday said it raised $3 billion through an issue of senior unsecured bonds in the United States. The bonds will be issued in three tranches by BHP's subsidiary in the United States and will be guaranteed by the miner. It will use the proceeds from the bonds for general corporate purposes, BHP said. The principal amounts on the three tranches range from $750 million to $1.25 billion with a tenor ranging from five years to a decade. It will pay a fixed coupon rate between 5.0% and 5.30% on the bonds. Sign up here. https://www.reuters.com/markets/commodities/bhp-raises-3-billion-through-bond-issuance-us-2025-02-18/

2025-02-18 22:49

BRASILIA, Feb 18 (Reuters) - Brazil's Treasury on Tuesday raised $2.5 billion in a new 10-year dollar-denominated sovereign bond, with a 6.75% yield, it said in a statement. The so-called Global 2035 aims to further the Treasury's strategy of enhancing liquidity in the country's external yield curve, the government said. A source familiar with the matter, speaking anonymously since details are still private, said the initial price was set at around 7.05%. The Treasury said Bradesco, JP Morgan and Morgan Stanley were leading the transaction. "The issuance reinforces the important role of external debt in extending maturities, diversifying benchmarks and broadening the investor base," the Treasury said. The operation comes as Brazil's five-year Credit Default Swap (CDS) has improved significantly, dropping more than 20% year-to-date. This follows a sharp deterioration in December, when fiscal concerns and global market uncertainty after the election of U.S. President Donald Trump sparked a sell-off in Brazilian assets. Recently, central bank chief Gabriel Galipolo noted that asset markets have risen on relief that tariffs threatened by Trump have not been immediately imposed, after initial widespread expectations that his policies would be inflationary. Latin America's largest economy last tapped international markets in June last year, raising $2 billion in its second sustainable bond issuance. In the release of its 2025 financing plan earlier this month, the Brazilian Treasury said it expected to continue issuing conventional and sustainable sovereign bonds on the international market this year. Sign up here. https://www.reuters.com/world/americas/brazil-raises-25-billion-with-675-yield-global-bond-sale-with-10-year-dollar-2025-02-18/