2026-02-06 18:26

SAO PAULO, Feb 6 (Reuters) - Brazilian corn ethanol producer Inpasa will quickly ramp up exports of dried distillers grains with solubles (DDGS) to China this year, Gustavo Mariano Oliveira, the company's vice president of trading, said on Friday. Inpasa produces some 3.3 million metric tons annually of DDGS, a corn ethanol byproduct used in animal feed. The company said on Tuesday it would soon make its first shipment to China. Sign up here. The company already has contracts to export an additional 250,000 tons of DDGS to China this year and could secure total shipments of up to 1.5 million tons in 2026, Oliveira said in an interview, adding that China could account for up to half of all DDGS exports in short order. "Without a doubt, China should be the main player in a very short time, perhaps accounting for 40% to 50% of our exports," Oliveira said. Corn ethanol production has exploded in Brazil, which had long been dominated by sugarcane biofuels. The growth has been aided by sales of DDGS, which have found ready customers in beef and other meat industries in Brazil and abroad. Strained relations between top commodity buyer China and the U.S. have also created opportunities for Brazilian producers. Last year, China authorized imports of Brazilian sorghum at a time when U.S. exports to the Asian nation fell. "An opportunity arose from the situation last year," Oliveira said. "It's a great opportunity, and we see this door that has been opened as one that should remain open in the coming years." China is far from the only destination open to Brazil's DDGS exports, he said. "We have been seeing more demand from Europe," Oliveira said. Spain is now the biggest buyer of Inpasa's DDGS, but more countries are showing interest, he said. "We've seen a growing appetite from Italy for our product, and from some other countries that we'll likely open markets with later this year," he said. https://www.reuters.com/sustainability/climate-energy/brazils-inpasa-ramps-up-exports-dried-distillers-grains-china-2026-02-06/

2026-02-06 18:20

Bessent says Trump has 'great respect' for Fed, central bank's independence Senate Banking Chair Tim Scott has said Fed chief Powell did not break law Senator Tillis has vowed to block nomination for top Fed job until Powell probe resolved WASHINGTON, Feb 6 (Reuters) - U.S. Treasury Secretary Scott Bessent on Friday stressed that President Donald Trump was joking when he said over the weekend that he could sue Kevin Warsh, his nominee to lead the Federal Reserve, if he doesn't lower interest rates. Bessent, who had been asked about the comment by Senator Elizabeth Warren, a Democrat, during a Senate Banking Committee hearing on Thursday, told CNBC that Trump's quip at a Washington dinner was clearly made in jest. Sign up here. "I tried to explain to Senator Warren - Warren, who seems to have no sense of humor - that it was a joke," he said. "And the president also made a joke about her not having reservations, so we know what that's a reference to." Bessent said the Republican president "has great respect for the Fed, for the Fed's independence." Trump sparked a minor furor over the weekend when he joked during a gala dinner hosted by the exclusive Alfalfa Club that he would sue Warsh if he didn't lower rates should he be confirmed to replace Fed Chair Jerome Powell later this year. The president later told a reporter aboard Air Force One that it was a joke. Bessent on Thursday declined to commit that the Trump administration would not sue Warsh if he follows a monetary path opposed by the president, telling Warren: "That is up to the president." CONTROVERSY OVER PROBE INTO POWELL In the interview with CNBC, the Treasury chief dodged a question on whether the U.S. Justice Department investigation into Powell should continue. "That will be for Jeanine Pirro to decide," he said, a reference to the U.S. Attorney for the District of Columbia who is leading the case. The Trump administration's decision to open a criminal investigation into Powell over the cost of a renovation of the Fed headquarters building in Washington has drawn widespread condemnation from former U.S. central bank chiefs and even key members of Trump's Republican Party. Powell has called the move a "pretext" to gain presidential influence over the setting of interest rates. Republican Senator Thom Tillis, a member of the Senate Banking Committee, has said he'll block any Fed confirmation hearings until that legal matter is resolved. Senate Democrats have made similar demands. Earlier this week, Republican Senator Tim Scott, who chairs the Senate Banking Committee, said he did not believe Powell had broken the law. Asked about Scott's remark, Bessent said, "And if you look closely at the bench from the senators, they said no crime was committed. But it's also not a great look, because they said that the chair was incompetent. So no crime, but probably guilty of incompetence." Trump's comment about Warren appeared to echo years of taunting questions about whether the Massachusetts lawmaker, a former presidential candidate, indeed has Native American heritage. Warren released DNA test results in 2018 to push back on Trump's comments, with the results showing some evidence of a Native American ancestor. https://www.reuters.com/business/finance/bessent-says-trumps-comment-about-suing-his-fed-chair-nominee-was-joke-2026-02-06/

2026-02-06 17:51

Glencore to agree Kazzinc stake sale within weeks, source Coal asset spinoff could lift Glencore shares, say analysts Glencore due to report 2025 results on February 18 LONDON, Feb 6 (Reuters) - Glencore's (GLEN.L) , opens new tab failed merger talks with Rio Tinto (RIO.AX) , opens new tab, (RIO.L) , opens new tab have left the Swiss-based mining group likely to focus on asset sales as it works to strengthen its copper portfolio. Talks to forge a $240 billion global mining giant were called off this week over disagreements on valuation and ownership, marking the third failed tie-up attempt by the two companies, after earlier merger discussions in 2014 and 2024. Sign up here. As part of its portfolio reshaping, Glencore is expected to announce the sale of its 70% stake in Kazzinc, its zinc, lead and gold producer in Kazakhstan, in the coming weeks, a source close to the matter told Reuters. Analysts value the asset at around $5 billion. Glencore CEO Gary Nagle has repeatedly spoken in favour of industry consolidation and bigger scale, arguing that the mining sector is not big enough to attract broad investor interest and that bringing assets together creates value. Meanwhile, the company said it aims to reach copper output of 1.6 million metric tons by 2035 through new and restarted mines and streamlined operations, from 852,000 tons in 2025. Investors think Glencore, which has a stock market value of $75 billion, will focus in the near term on disposals. "The next step may be to sell off assets individually ... to create a more concentrated copper and trading business that could attract a higher multiple," said Iain Pyle, investment manager at Aberdeen. Glencore is in talks to sell 40% of its copper and cobalt business in the Democratic Republic of Congo to U.S.-backed Orion Critical Minerals Consortium. It is also working with Brazil's Vale (VALE3.SA) , opens new tab on a nickel venture to jointly evaluate a brownfield copper development at their adjacent assets in Canada. "They (Glencore) can continue to tidy up their portfolio and release value," said George Cheveley, portfolio manager at Ninety One, which holds shares in Glencore and Rio. Glencore's shares, which fell more than 10% after the Rio Tinto deal talks collapsed on Thursday, have underperformed many of its competitors in recent years, but they have risen 19% since the start of the year. Its adjusted EBITDA core profit fell by about 16% in 2024 and by 14% in the first half of last year. It is due to report 2025 results on Feb 18. Glencore had already been working on deals before the Rio Tinto talks as it looks to focus on copper, cobalt and nickel, all metals which are tied to the energy transition. It also has coal assets, which it decided against spinning off in 2024 after consulting shareholders. COAL SPINOFF DEBATE Glencore is one of the world's largest producers of thermal coal and with prices recovering, investors see a chance for the company to unlock value while cleaning up its portfolio. "They probably would like to see a recovery in coal prices, which appears to be happening, but that cash from the coal business is still very valuable to them," Cheveley said. Analysts say a partial listing of coal assets could re-rate Glencore's shares, freeing up capital to grow its copper portfolio in Africa and South America amid surging demand from electric vehicles, AI data centres and grid expansion. Glencore said it would only reconsider a spinoff of the coal assets if shareholders asked for it. RIO TINTO REVISITED? Jefferies analysts said that while a renewed round of talks with Rio Tinto cannot be ruled out, they see it as unlikely and expect Rio Tinto to pursue its own strategy independently. Under British law, Rio Tinto cannot restart talks with Glencore for six months. Rio Tinto had rejected Glencore's push to retain around 40% of the combined group, sources said, a demand some investors viewed as too ambitious. The offer was more in the region of a 62-38 ratio, which would have given Glencore's shareholders a 30% premium, the sources said. "The strategic logic was always apparent, but perhaps finding a shared view on valuation was always going to be challenging," said Aberdeen's Pyle. When Rio Tinto and Glencore announced their latest talks last month, some analysts speculated that the world's largest miner, BHP (BHP.AX) , opens new tab, might step in. However, the Australian miner ruled out a counterbid, sources familiar with the matter said at the time. The same sources said a renewed approach remains unlikely. BHP declined to comment. https://www.reuters.com/world/asia-pacific/glencore-focus-short-term-disposals-rio-deal-remains-elusive-2026-02-06/

2026-02-06 17:44

Williams looking to buy natural gas production assets, sources say Part of company's strategy to focus on supplying energy to data centers Williams already spending $5 billion-plus on power projects for digital infrastructure NEW YORK, Feb 6 (Reuters) - Williams Companies (WMB.N) , opens new tab is exploring buying natural gas production in the United States, a rare foray for an energy infrastructure operator, as it aims to secure natural gas supplies to support its one-stop-shop offering to hyperscalers and data center clients, three people familiar with the matter said. The Tulsa, Oklahoma-based firm has spent the last year positioning itself as a leader in providing energy to companies building out artificial intelligence infrastructure, supplementing its traditional pipeline business with new power generation capabilities. Sign up here. Williams is now searching for upstream assets that would allow it to pitch itself as a single energy partner to hyperscalers, the sources said, giving it a competitive advantage in courting digital infrastructure operators that would otherwise need to negotiate with multiple parties. The sources cautioned there was no guarantee that the company would move forward with the plan, and also spoke on condition of anonymity to discuss confidential deliberations. In a statement, Williams said it "continuously evaluates opportunities that align with and advance our natural gas-focused strategy", but declined to comment further. The company is due to report its fourth-quarter earnings, as well as host its 2026 analyst day, on Tuesday. AI POWER NEEDS Securing the necessary power to support data centers has become one of the biggest challenges for hyperscalers and other developers of AI infrastructure. As well as needing huge amounts of consistent electricity, data centers are placing stress on a grid experiencing demand growth for the first time in two decades. Power providers are struggling to keep up, with existing generation affected by weather extremes and new projects stymied by local opposition and wait times for key power-plant components. Williams has put power generation at the heart of its strategic planning. Its $2 billion Socrates project in Ohio, due online in the second half of this year, has Meta Platforms (META.O) , opens new tab buying the 440 megawatts of power it is due to generate. On October 1, Williams disclosed plans for two further power projects in Ohio, called Apollo and Aquila, backed by 10-year power purchase agreements with an unnamed party. Williams anticipates spending around $3.1 billion on these two projects, with both due online in the first half of 2027. Adding power projects to its existing infrastructure, which includes around 33,000 miles of pipelines carrying predominantly natural gas and associated storage assets, is expected to bolster its earnings in coming years. Williams' current target is to grow earnings before interest, taxes, depreciation and amortization (EBITDA) by between 5% and 7% annually. Analysts at UBS said in a February 4 note that they were watching to see whether Williams will increase this target to more than 7% compounded annual growth through 2030 at next week's analyst day. INTEGRATED ENERGY An integrated model, in which a U.S. oil and gas company would own a combination of production, storage, transportation and refining assets had been commonplace. However, the industry moved to favor specialization in the early part of the 21st century and most companies - outside of giants such as Exxon Mobil (XOM.N) , opens new tab and Chevron (CVX.N) , opens new tab - divested their non-preferred components. Williams spun off most of its upstream business into WPX Energy at the start of 2012. WPX remained independent until the beginning of 2021, when it completed a $12 billion merger with Devon Energy (DVN.N) , opens new tab. Williams has possessed other small production assets, often tied to joint ventures or part of its midstream footprint, but these have also been offloaded over time - its stake in a Haynesville shale basin joint venture with GEP Haynesville II, for example, was agreed in October to be sold to Japan's JERA for a total consideration of $1.5 billion. https://www.reuters.com/business/energy/williams-weighs-buying-gas-producing-assets-enhance-ai-energy-supply-2026-02-06/

2026-02-06 17:37

BUENOS AIRES, Feb 6 (Reuters) - A deal on critical minerals between Argentina and the U.S. signed this week does not rule out Chinese investment in the country's mining sector, Argentine Foreign Minister Pablo Quirno said on Friday. "This, as of today, does not imply that China cannot participate or will not participate in investments in Argentina. In fact, it has investments in Argentina, in minerals," Quirno said in a press conference. Sign up here. The agreement was announced after a meeting of more than 50 countries in Washington this week where U.S. Vice President JD Vance proposed a trading bloc for critical minerals, with the U.S. establishing a system creating price floors for the commodities. The two countries also finalized a reciprocal trade and investment agreement on Thursday, with Argentina committing to prioritizing the U.S. as a trading partner for its copper, lithium and other critical minerals over "market manipulating economies or enterprises" - a reference to China. "What this Argentina-United States agreement does is that it gives greater predictability so that American companies, which are already the leading investor in Argentina, can increase their investments," Quirno said. Standing alongside Quirno, Argentina President Javier Milei''s cabinet chief Manuel Adorni did not directly respond to a question about whether Milei had plans to visit China, referring instead to upcoming visits he will make to the U.S. Argentina was also seeking more "flexibility" within the Mercosur trade bloc, which also includes Brazil, Paraguay and Uruguay, with Bolivia poised to become a full member, Quirno said. He said that the Mercosur trade bloc doesn't prohibit Argentina from reaching bilateral agreements, like this one, which he said took just over a year to finalize. The reciprocal trade and investment agreement will have to be approved by Argentina's Congress but Quirno said parts could go into effect through a presidential decree. https://www.reuters.com/world/china/argentinas-minerals-deal-with-us-does-not-rule-out-chinese-investment-minister-2026-02-06/

2026-02-06 17:07

WASHINGTON, Feb 6 (Reuters) - U.S. Energy Secretary Chris Wright said on Friday he will before long visit Venezuela to meet with "all the leadership" and to get a better understanding of on-the-ground oil and gas production operations there. Wright did not say when the trip will take place. The Trump administration has said it will manage Venezuela's oil business indefinitely after seizing President Nicolas Maduro last month. Sign up here. https://www.reuters.com/business/energy/us-energy-secretary-visit-venezuela-see-leaders-before-long-2026-02-06/