2025-02-11 23:47
Trump directs U.S. Treasury to end penny production Pennies cost more to produce than their face value Ending pennies could hurt lower-income groups, lobby group says Feb 11 (Reuters) - Nour Ismail, a cashier at the All-Star Deli & Grocery in Manhattan, says the handful of pennies tossed into the bodega's tip jar by the end of the day is mostly a nuisance, rather than a welcome reward for good service. As a tip, pennies are nearly worthless, the 24-year-old said, adding that the offering shows customers' kindness and sometimes they add up. But, "pennies don't matter," he said with a shrug. It is a point of view shared by U.S. President Donald Trump, who said on Sunday that he had directed the U.S. Treasury, which oversees the U.S. Mint, to end production of pennies. The announcement, which Trump made on his Truth Social platform, has stirred up a decades-long debate about the utility and cost of the copper-colored one-cent coin. Those pushing for their demise say pennies are wasteful, and point to countries such as Canada that have successfully pulled them out of circulation. According to the Mint's annual report, a penny last year cost 3.69 cents to produce, up about 20% from 2023 due to the cost of materials, including zinc. Larry Jackson, 65, a life-long numismatist - meaning someone who studies coins - and proprietor of Larry Jackson Rare Coins in Atlanta, supports Trump's plan. "People don't want them. They don't use them. They sock them away in cans and drawers and jars and try to bring them in here by the sackful," Jackson said. "We don't want them. Even a thirty-pound bag won't fetch you $50." Jackson said there are collectors who hoard pennies minted in 1982 and before for their copper value. But that scheme would only work if it ever becomes legal to melt them down, he said. Despite Trump's directive, it is unclear whether the president has the power to end production of the penny, as the Mint derives its authority from Congress, according to its website. Neither the Treasury Department nor the U.S. Mint returned phone calls seeking comment. BAD FOR CONSUMERS? Advocates for the penny argue that the coin plays an important role in U.S. society. People toss them as loose change into a jar for charity or use them to pay for single items at convenience and grocery stores. "The key issue is that it is bad for consumers and the economy," said Mark Weller, director of Americans for Common Cents, a lobbying group backed by businesses involved in the coin's manufacture. Weller said polling shows Americans do not like rounding, and grocers and corner stores, facing razor-thin margins, are likely to round up if the coin is discontinued. In addition to fueling inflation, discontinuing the penny would "disproportionately hurt lower-income groups, people who are unbanked and underbanked and are relying on a cash economy," Weller added. "Cash is cheapest for consumers." But a 2007 Wake Forest University study of a multi-state convenience store chain offered evidence that eliminating the penny would not create a rounding tax, and would not contribute to rising prices. "Losing the penny was just a wash for the consumer," said Robert Whaples, professor at Wake Forest who authored the study. "It's as much rounding up as it is down." Sean Snaith, an economist and director of the Institute of Economic Competitiveness at the University of Central Florida, agrees that the penny is an historical relic. "Gone are the days of penny candy or even buying a gum ball for a penny," Snaith said. "I think at some point in history cancelling the penny would have been a bigger deal, but now people don't even carry them in their pockets," he said. "They're largely not in circulation." Snaith said that the nickel, which costs more than 13 cents to make but is only worth five cents, is an even bigger loss leader. "We're losing more money on the nickel; people should worry about that," he said. Canada announced in 2012 that it was eliminating the penny, saying the coin had retained only a twentieth of its original purchasing power and taking it out of circulation would save C$11 million annually. Prices for cash transactions were rounded up or down to the closest five cents. Non-cash payments such as checks, credit and debit cards continued to be settled to the cent. Richie Figueroa, 55, of Staten Island, agrees pennies are more a nuisance and would welcome the move to get rid of them. "A lot of times I go into the store, I don't even wait for change for pennies," Figueroa said. "What purpose do they serve?" Sign up here. https://www.reuters.com/markets/currencies/few-mourn-us-penny-trump-moves-kill-it-2025-02-11/
2025-02-11 23:42
MEXICO CITY, Feb 11 (Reuters) - Market conditions are currently not ideal for Mexican airline Aeromexico to list in New York, the firm's CEO said on Tuesday, after plans to go public were delayed last year. Aeromexico CEO Andres Conesa told journalists the carrier would list "as soon as market conditions allow," but did not explain further. "We aren't in a rush," Conesa said, adding the initial public offering (IPO) would come "whenever shareholders decide to sell." Aeromexico, a Mexican legacy airline, had long been a presence on the nation's main stock exchange. But it delisted as part of Chapter 11 bankruptcy proceedings, which it came out of in 2022. Some of the carrier's largest shareholders after Chapter 11 include private equity firm Apollo Management (APO.N) , opens new tab, investment firm Silver Point Capital and Delta Air Lines (DAL.N) , opens new tab, with which Aeromexico has a joint venture. Last year, Aeromexico filed plans to list on the New York Stock Exchange under the ticker "AERO." Its shareholders were set to sell American Depositary Shares (ADSs) in the IPO, but the carrier did not disclose the size or the price range of the offering. Media reported at the time that Aeromexico investors were seeking up to $500 million with the IPO, but that factors such as Mexico's presidential elections last year made the timing uncertain. CODESHARE WITH DELTA UNDER SCRUTINY Aeromexico's tie-up with Delta, which includes a codeshare agreement allowing each airline to sell seats on a flight operated by the other, makes the carriers the largest in terms of U.S.-Mexico routes, Conesa said. But that agreement has been at risk since last year, when the U.S. Department of Transportation (DOT) said it did not plan to renew the deal after the Mexican government moved some flights in and out of Mexico City. Conesa said his airline was "confident" the DOT would ultimately decide to extend the partnership with Delta after opening the case to consultations, with Aeromexico submitting evidence in its favor. Sign up here. https://www.reuters.com/business/aerospace-defense/market-conditions-not-ideal-aeromexico-ipo-new-york-ceo-says-2025-02-11/
2025-02-11 23:29
Demand recovery has not been enough to fill 36 passage slots on offer US, Panama had recent public dispute over tolls for US military vessels Feb 11 (Reuters) - The number of vessels that passed through the Panama Canal, the world's second busiest waterway, fell to an average of 32.6 per day for a total of 1,011 ships in January, the first month-on-month decline in almost a year, according to a bulletin published on Tuesday by the canal's administrating authority. Following a severe drought between late 2023 and early 2024 that forced passage restrictions, the canal saw a solid increase in transits during 2024 to a total of 1,059 ships in December, according to statistics by the Panama Canal Authority. But the demand recovery was not enough to fill the 36 passage slots that remained on offer since September, the data showed, amid toll increases that led to some shippers opting for longer routes to Asia. In February last year, the total number of transits fell to 662 ships from 702 in January. But from February on, traffic increased almost 60% through the end of the year. U.S. Secretary of State Marco Rubio earlier this month visited Panama City and met the canal's top officials to discuss tolls and the presence of Chinese businesses near the waterway, which some Washington politicians and government officials have identified as a security risk for its operation. In the fiscal year that ended in September, the canal reported a 5% fall in toll revenue to $3.18 billion amid the drought. In the fiscal years ended between 2020 and 2023, the canal's toll revenue had increased almost 26% to $3.35 billion, according to the canal's annual reports. Following Rubio's visit, the U.S. and Panama governments had a public dispute over tolls to be paid by U.S. military vessels, which have priority of passage through the canal, according to a 1977 neutrality treaty signed when the U.S. agreed to return the canal to Panama. Panama's president, Jose Mulino, said Washington was spreading "lies and falsehoods" when it claimed that U.S. government vessels would be able to pass through the canal without paying. The comments exacerbated tensions between the two countries after the U.S. had cited progress on military cooperation and strategies on China's expansion in Panama. Sign up here. https://www.reuters.com/markets/commodities/transits-through-panama-canal-fell-january-first-time-almost-year-2025-02-11/
2025-02-11 23:27
Modi, Vance met in Paris Modi will visit U.S. later this week Trump and Modi held a call after Trump took office WASHINGTON, Feb 11 (Reuters) - U.S. Vice President JD Vance and Indian Prime Minister Narendra Modi spoke on Tuesday about how the United States can assist India in diversifying its energy sourcing through investments in U.S. nuclear technology, the White House said. WHY IT'S IMPORTANT The meeting between Vance and Modi in Paris on Tuesday, where they were both attending an artificial intelligence summit, came ahead of the prime minister's U.S. visit later this week in which topics like trade, investment, technology and immigration are expected to be discussed. Earlier this month, India proposed to amend its nuclear liability law to boost foreign and private investments in the much-guarded sector. Analysts say Washington has for years seen India as a counter to China's rising global influence. KEY QUOTE Modi and Vance "discussed topics of mutual interest, including how the United States can assist India in diversifying its energy sourcing through investments in clean, reliable U.S. nuclear technology," the White House said in a statement. In a post on X, Modi said he and Vance "had a great conversation on various subjects." CONTEXT Strict liabilities under India's Civil Liability for Nuclear Damage Act, 2010, had hampered implementation of an India-U.S. nuclear deal that envisaged participation of U.S. power plant makers such as General Electric and Westinghouse. RECENT CALL AND TRUMP COMMENTS Modi and Donald Trump spoke late in January after the U.S. president took office. The White House said that in that phone call Trump had stressed the importance of India buying more American-made security equipment and moving toward a fair bilateral trading relationship. Republican Trump and right-wing Hindu nationalist Modi enjoyed warm relations in Trump's first term, but during his campaign for re-election Trump called India a "very big abuser" on trade. Trump also threatened the BRICS group of nations, of which India is part, with tariffs if they did not accept his demand of committing to not create a new currency. India is considering tariff cuts in at least a dozen sectors to boost U.S. exports in line with New Delhi's domestic production plans, government officials say. Modi may also propose increased U.S. energy and defense imports. Sign up here. https://www.reuters.com/business/energy/indian-pm-modi-us-vp-vance-discuss-diversifying-indias-energy-sourcing-2025-02-11/
2025-02-11 23:22
SYDNEY, Feb 12 (Reuters) - Australia's parliament has passed laws that would give production tax breaks for critical minerals and renewable hydrogen, in a boost for energy transition plans as it aims to hit net zero emissions by 2050, and reduce dependence on China. The law, passed on Tuesday, will create tax incentives worth 10% of processing and refining costs for 31 critical minerals from the fiscal year ending June 2028 to 2040, for up to 10 years per project, the centre-left Labor government said. For renewable hydrogen, a tax incentive worth A$2 ($1.26) per kg of renewable hydrogen produced will be offered. "By processing more of these minerals here in Australia, we will create jobs and diversify global supply chains," Resources Minister Madeleine King said in a statement. Major economies are seeking to invest billions to support critical minerals projects and compete with China, the world's largest producer of rare earths. Critical minerals and rare earths are used in solar panels and batteries needed to lower carbon emissions, and are required for the construction of submarines and aircraft. The opposition Liberal-National coalition voted against the legislation after its amendments that would require companies to undertake fewer environmental or Indigenous consultations were blocked by Labor and the Greens party. "Labor's tax credits come with additional and unnecessary red and green tape," the opposition said in a statement. The Anthony Albanese-led Labor government is seeking to showcase the tax breaks in some electorates in the resource-rich states of Western Australia and Queensland ahead of a national election due by May. The Australian government in its May budget had pledged to introduce tax incentives worth A$7 billion for the processing and refining of critical minerals and A$6.7 billion for renewable hydrogen production from 2028 to 2040. ($1 = 1.5886 Australian dollars) Sign up here. https://www.reuters.com/markets/commodities/australia-passes-tax-incentives-law-critical-minerals-2025-02-11/
2025-02-11 23:16
AMSTERDAM, Feb 12 (Reuters) - Climate activist group Friends of the Earth Netherlands is taking its court case against oil major Shell (SHEL.L) , opens new tab to the Netherlands' Supreme Court, as it continues to seek a specific carbon reduction target for the company and its products. Shell in November won an appeal against a 2021 landmark ruling in the case that had required it to accelerate efforts to reduce greenhouse gas emissions. The appeals court said Shell did have a responsibility to reduce emissions to protect people from global warming, but said it could not determine a specific reduction target for the company. Friends of the Earth, however, said it still saw "more than enough" options for a specific target. "Judges have already confirmed that Shell is responsible for reducing emissions and to make its own contribution to the Paris Climate Agreement," the group's lawyer Roger Cox said. "There is enough of a legal basis to make the ruling more specific and stronger." The original 2021 ruling had ordered Shell to cut its absolute carbon emissions by 45% by 2030 compared to 2019 levels, including those caused by the use of its products. But the appeals court agreed with Shell that an absolute order to reduce emissions from its products could have an adverse effect worldwide, as it could lead customers to switch from using Shell's gas to more polluting coal. Shell CEO Wael Sawan at the time said Shell believed the decision was "the right one for the global energy transition, the Netherlands and our company". The Supreme Court will not reconsider the facts and evidence presented to the lower courts but will judge whether procedures were correctly followed and if the ruling was properly motivated. It can then either uphold or annul the ruling, after which the case could be reassigned to another court. The ruling is expected in 2026. Sign up here. https://www.reuters.com/sustainability/climate-energy/climate-activists-take-shell-case-dutch-supreme-court-2025-02-11/
