2024-05-15 22:26

BRASILIA, May 15 (Reuters) - Brazilian federal prosecutors have filed a lawsuit to suspend a license given to a Canadian firm to install what would be Latin America's largest fertilizer mine in the Amazon rainforest, their office said. The planned mine by Brazil Potash Corp overlaps with ancestral lands of the Mura Indigenous people whose territory is in the process of demarcation, the prosecutors said in a statement issued on Tuesday. They added the licensing must be a federal issue to be decided by Brazil's environmental protection agency Ibama and not the state environmental body Ipaam. Federal agency Ibama said in response to a Reuters query that it was its responsibility to issue environmental licenses for any enterprise on Indigenous lands, but a technical study would need to identify whether the Autazes mine was on Indigenous land in order to determine federal competence over licensing. Brazil Potash Corp. Chief Executive Matt Simpson said the Mura land has not been officially recognized as a protected reservation by the Brazilian government and therefore the mine can be licensed by the state of Amazonas whose governor fully backs the $2.6 billion project. The prosecutors' office has disputed the mine since 2016 and the project was halted by a federal judge in 2023, a decision that was subsequently overturned by a higher appeals court. Simpson said the company has requested 10 days to offer a statement demonstrating "the legal unfeasibility" of the prosecutors' request. The appeals court in Brasilia that overruled the Manaus judge's decision had "established the state's competence to conduct environmental licensing and authorized the continuation of the licensing process," Simpson said in writing to Reuters. The prosecutors' office in Manaus said Mura leaders had been subject to "false promises and threats." It added that the mine presented a "serious environmental risk" that would affect the entire region's population and that impact studies had not been carried out properly. The mine could be fundamental for Brazilian agriculture as it will reduce Brazil's 90% dependence on imported potash, but it has been held up by opposition from the Mura people who say they have not been consulted about use of their ancestral lands. Governor Wilson Lima, who says the mine will bring his state investment and development, announced last month that the installation license had been granted for the mine to be built in Autazes, 75 miles (120 km) southeast of state capital Manaus. Brazil Potash said it will start this year on the shafts that will extract the potash and return salt to the bottom of the mine. The project will take three years to build. The mine will deliver potash to Brazilian farm states by river barges at less than even the transportation costs New Tab, opens new tab of producers in Russia, Belarus and Canada, who have to ship across the world, according to Simpson. Brazil Potash is owned by CD Capital with a 34% stake, Sentient with 23% of shares, and Stan Bharti's Forbes & Manhattan Group, a Toronto-based merchant bank that began the project and now holds 14%, along with other shareholders. Sign up here. https://www.reuters.com/world/americas/brazil-prosecutors-again-seek-suspend-canadian-potash-mine-amazon-2024-05-15/

2024-05-15 22:12

May 15 (Reuters) - The day before Elon Musk fired virtually all of Tesla’s electric-vehicle charging division last month, they had high hopes as charging chief Rebecca Tinucci went to meet with Musk about the network’s future, four former charging-network staffers told Reuters. After Tinucci had cut between 15% and 20% of staffers two weeks earlier, part of much wider layoffs, they believed Musk would affirm plans for a massive charging-network expansion. The meeting could not have gone worse. Musk, the employees said, was not pleased with Tinucci’s presentation and wanted more layoffs. When she balked, saying deeper cuts would undermine charging-business fundamentals, he responded by firing her and her entire 500-member team. The departures have upended a network widely viewed as a signature Tesla achievement and a key driver of its EV sales. Tesla Superchargers account for more than 60% of U.S. high-speed charging ports, federal statistics show, and the company has been the biggest winner so far of $5 billion in federal funding for new chargers. This account, the most detailed to date on the Supercharger firings and the fallout, is based on interviews with eight former charging-division employees, one contractor and a Tesla email sent to outside vendors. Only Musk and Tinucci were in the meeting described to Reuters; the four sources with knowledge of the meeting are relaying what they heard about it from Supercharger department managers. Tesla, Musk and Tinucci did not respond to requests for comment from Reuters. Despite the mass firings, Musk has since posted on social media promising to continue expanding the network. But three former charging-team employees told Reuters they have been fielding calls from vendors, contractors and electric utilities, some of which had spent millions of dollars on equipment and infrastructure to help build out Tesla’s network. A letter sent earlier this month by a Tesla global-supply manager to Supercharger contractors and suppliers instructed them to “please hold on breaking ground on any newly awarded construction projects” and halt materials purchases, according to a copy reviewed by Reuters. “I understand that this period of change may be challenging, and that patience is not easy when expecting to be paid!” Tesla's energy team, which sells solar and battery-storage products for homes and businesses, was tasked with taking over Superchargers and calling some partners to close out ongoing charger-construction projects, said three of the former Tesla employees. One construction contractor said Tesla staffers contacting his company since the layoffs “don’t know a thing.” The contractor said he had expected Supercharger projects to provide about 20% of his 2024 revenue but now plans to diversify to avoid relying on Tesla. Tinucci was one of few high-ranking female Tesla executives. She recently started reporting directly to Musk, following the departure of battery-and-energy chief Drew Baglino, according to four former Supercharger-team staffers. They said Baglino had historically overseen the charging department without much involvement from Musk. The charging-team layoffs mark the latest drama in a tumultuous year for Tesla as Musk has shut down or delayed several core efforts meant to drive the rapid EV sales growth that investors have expected. Instead, Musk now says Tesla will shift its main focus to self-driving cars, a fiercely competitive and riskier business that could take years to develop. The company posted its first decline in auto sales since 2020 in the first quarter amid fierce competition from Chinese electric-vehicle makers and sagging worldwide EV demand. Reuters reported in April that Tesla had scrapped plans for a long-awaited affordable car known as the Model 2. That has thrown into doubt Tesla’s plans for new factories in Mexico and India, where Musk had been expected to travel last month to meet Prime Minister Narendra Modi, before canceling at the last minute. And a host of executives have departed amid deep companywide layoffs. SCALED-BACK CHARGING EXPANSION The energy team that was assigned to take over charging-network management has some similar design and construction roles, two of the former Tesla employees said. But charging projects are fundamentally different because they are located in public places and require extensive negotiations with utilities, local governments and landowners, they said. The energy team was already struggling to keep pace with its current workload, said two of the former charging-network staffers. Yet when the layoffs came down on April 30, Musk posted that the company “still plans to grow the Supercharger network, just at a slower pace.” On Friday, Musk posted that “Tesla will spend well over $500M expanding our Supercharger network to create thousands of NEW chargers this year.” Two former Supercharger staffers called the $500 million expansion budget a significant reduction from what the team had planned for 2024 - but nonetheless a challenge requiring hundreds of employees. In an analysis provided to Reuters, San Francisco research firm EVAdoption estimated a $500 million investment this year would translate to Tesla building 77% fewer charging ports per month in the United States compared with the automaker’s pace through April. ‘HOLDING THE BAG’ Tesla unveiled its first Supercharger stations throughout California in 2012, with Musk calling the network a “game changer” for EVs that would enable long-distance travel and convenience “equivalent to gasoline cars.” The EV-charging business requires substantial upfront investment, and analysts have often viewed it as unprofitable. But Tesla’s network had been profitable before the layoffs, according to four former Tesla employees familiar with the division’s financial performance. That owed to Tesla’s cost-control and extensive analysis to choose locations that could draw business throughout the day rather than only during peak-demand times, when electricity costs spike. One former Supercharger staffer said Tesla’s costs per-charging-port were typically at least 50% lower than those of competitors. As recently as last month, Tesla said in a securities filing that it needed to expand charging to “ensure adequate availability” for customers, particularly after automakers including Ford (F.N) New Tab, opens new tab, General Motors (GM.N) New Tab, opens new tab, Toyota (7203.T) New Tab, opens new tab and Hyundai (005380.KS) New Tab, opens new tab announced they would start making their cars compatible with Tesla’s charging plugs, giving their vehicles Supercharger access. Another former employee said that rollout is “completely jeopardized” because there will not be enough new charging sites coming online, and the company was only starting to implement upgrades to allow more compatibility with other manufacturers’ vehicles. Three of the former employees called the firings a major setback to U.S. charging expansion because of the relationships Tesla employees had built with suppliers and electric utilities. Tesla had grown into one of the larger customers for many major utilities around the country, and many had hired new staff and planned new infrastructure based on Tesla’s charging-network expansion plans, the former employees said. Other companies may be able to fill the gap, the former employees said, but the goodwill built over time with utilities and other contractors from Tesla’s large-scale charging investments will be difficult to replicate. “It’s just unfortunate that now they’re stuck holding the bag on all these different projects,” one of the former employees said. “It’s really sad to see all these relationships burned and people be really angry - rightfully so." Sign up here. https://www.reuters.com/business/autos-transportation/inside-story-elon-musks-mass-firings-tesla-supercharger-staff-2024-05-15/

2024-05-15 22:09

May 15 (Reuters) - A barge crashed into a bridge on the Texas coast on Wednesday, forcing the closure of the only roadway to a small island off the city of Galveston, city officials said. No injuries were reported and the Pelican Island Bridge remained standing after the barge, which Galveston County's Office of Emergency Management said was owned by Martin Petroleum, ran into it around 10 a.m. The Office of Emergency Management said in a statement that "vacuum gas oil from the barge has been visually confirmed in the water" and that the barge's total capacity was 30,000 gallons. The amount that has leaked was unknown. Calls to a number listed for Martin Petroleum Corp were not returned. The Office of Emergency Management said that about 6.5 miles of the Intracoastal Waterway has been closed to water traffic. TV images showed a portion of a railway that runs alongside the bridge, located about 60 miles southeast of Houston, collapsed atop the barge. The City of Galveston said in a written statement that "the U.S. Coast Guard is responding and will determine the extent of the spill, as well as initiate the containment and cleanup processes." An investigation is underway, the statement said. Officials have not yet said what may have caused the accident. The Coast Guard did not respond to requests for details. Engineers from the Texas Department of Transportation were en route to examine the bridge, which will remain closed until it is deemed safe, the city said. The collision comes amid heightened concerns in the U.S. about the vulnerability of bridges to large ships, after a cargo ship collided with Baltimore's Francis Scott Key Bridge in March, killing six people and leading to the collapse of the structure. Sign up here. https://www.reuters.com/world/us/barge-hits-bridge-texas-spills-oil-shuts-road-2024-05-15/

2024-05-15 22:05

May 15 (Reuters) - U.S. oil giant Exxon (XOM.N) New Tab, opens new tab said on Wednesday proxy advisor Glass Lewis should recuse itself from making recommendations on its upcoming shareholder meeting due to conflict of interest. The company said Glass Lewis is a member of the Interfaith Center on Corporate Responsibility (ICCR), which "has led the media opposition to ExxonMobil's decision to seek declaratory relief in court" related to a lawsuit. Glass Lewis said, "our membership in industry organizations does not create a conflict with all other members of those groups; rather our participation... is to remain abreast of ongoing global and regional trends that impact our clients and industry." Earlier this week, Glass Lewis recommended investors vote against Exxon's lead independent director, Joseph Hooley, citing the company's insistence in pursuing a lawsuit against activist investors who had withdrawn their resolutions against the company. The lawsuit filed earlier this year is related to Exxon seeking to block a vote on a climate proposal submitted by two small activist investors, including Arjuna Capital, which is a member of the ICCR. Exxon, frequently the focus of critical shareholder resolutions, had sidestepped the usual regulatory process to fend off similar measures. Additionally, the ICCR called Glass Lewis an "affiliate member" of the organization, which is a "more limited form of membership," with limited access to materials and not being eligible to vote on organizational policies or board nominations. Sign up here. https://www.reuters.com/sustainability/boards-policy-regulation/exxon-says-proxy-advisor-glass-lewis-should-recuse-itself-making-recommendations-2024-05-15/

2024-05-15 21:51

May 16 (Reuters) - A look at the day ahead in Asian markets. It's 'green for go' in Asia on Thursday as stock markets around the world roar to fresh highs, boosted by renewed optimism that the Federal Reserve will soon start cutting U.S. interest rates following benign inflation figures on Wednesday. The most notable exception is China, where the threat of outright deflation continues to loom large over the economy and depress risk appetite, while the yen's rebound on Wednesday could halt the Japanese equity revival in its tracks. Otherwise, the market mood could barely be more positive. Stocks are on fire, bond yields are sliding to the lowest levels in months, the dollar is retreating and appetite for riskier investments like emerging market assets is strong. While one data point does not a trend make, investors have latched onto the U.S. inflation report for April as evidence the Fed can start cutting rates soon - July is back in play and 50 basis points of cuts this year is now fully priced. Economists at UBS highlighted one particularly interesting nugget from the data - April marked the 16th time in 18 months when the non-seasonally adjusted core CPI one-month change was below the change 12 months prior. Maybe a trend is in place? That's the bullish backdrop for investors in Asia who also have several key local events to navigate on Thursday, including: first quarter Japanese GDP, Australian unemployment and a monetary policy decision from the Philippines. First quarter GDP data from Japan are expected to show Asia's second largest economy contracted an annualized 1.5% in the January-March period, signaling a quarterly decline of 0.4%, according to a Reuters poll. All key drivers of growth are expected to have gone into reverse in the quarter, not a particularly conducive environment for further rate hikes from the Bank of Japan. But that's exactly what markets are expecting - 25 bps of tightening is now in the 2024 money market curve, bond yields are rising and the 10-year U.S.-Japan yield spread on Wednesday shrank to less than 340 bps, the narrowest since March. The yen rallied 1% on Wednesday. Excluding April 29 and May 1, the two days of suspected yen-buying Japanese intervention, it was the currency's best day this year. Chinese assets are struggling more, mirroring the wider gloom hanging over the economy and the difficult choices policymakers face in lifting it. Sentiment will have been dampened further by Washington's new tariffs on some imports from China. It's a big day for Chinese company news on Thursday, with heavyweights Baidu New Tab, opens new tab and JD.Com both reporting first quarter earnings. In the Philippines, meanwhile, the central bank is expected to keep its key policy rate unchanged at 6.50%, and not lower it until the final quarter of this year, according to a Reuters poll. Here are key developments that could provide more direction to markets on Thursday: - Japan GDP (Q1) - Australia unemployment (April) - Philippines central bank decision Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-graphic-pix-2024-05-15/

2024-05-15 21:51

May 15 (Reuters) - Warren Buffett's Berkshire Hathaway (BRKa.N) New Tab, opens new tab on Wednesday revealed a new, $6.72 billion stake in the insurer Chubb , confirming months of speculation that it had made a big new investment. Berkshire owned 25.92 million Chubb shares as of March 31, according to a regulatory filing detailing Berkshire's U.S.-listed holdings as of that date. The disclosure sent Chubb's share price to a record high in after-hours trading, rising 6.3% to $268.96. Shares often rise when Berkshire reveals new holdings, reflecting what investors believe is Buffett's seal of approval. "Chubb is an attractive equity investment for Berkshire because it operates in a business Berkshire knows well: property-casualty insurance," Cathy Seifert, a CFRA Research analyst who covers Berkshire, said in an email. Seifert would not speculate whether Berkshire might buy all of Chubb, but said Chubb's focus on commercial lines specialty coverage and high-end homeowners' protection would be a "good fit" in Berkshire's insurance and reinsurance portfolio. Berkshire ended March with $189 billion of cash and equivalents. At Berkshire's annual meeting on May 4, Buffett said the cash stake could reach $200 billion by June, and that cash looked "quite attractive" relative to high-priced stocks and in light of "what's going on in the world." Chubb and Berkshire did not immediately respond to requests for comment. Berkshire began buying Chubb in last year's third quarter, and had obtained U.S. Securities and Exchange Commission permission to temporarily keep its purchases confidential. Buffett occasionally requests such permission to keep investors from piggybacking on him before he's done buying. In recent years, Berkshire obtained similar SEC permission for its investment in Chevron (CVX.N) New Tab, opens new tab and former investments in Exxon Mobil (XOM.N) New Tab, opens new tab, IBM (IBM.N) New Tab, opens new tab and Verizon (VZ.N) New Tab, opens new tab. The Chubb investment was revealed 10 days after Berkshire unexpectedly disclosed it had sold about 115 million Apple (AAPL.O) New Tab, opens new tab shares in the first quarter. That reduced its holdings in the iPhone maker to $135.4 billion, or 40% of its $335.9 billion equity portfolio. Apple accounted for most of the $20 billion in stock that Berkshire sold in the first quarter. Berkshire also pared holdings of several other stocks, including Louisiana Pacific (LPX.N) New Tab, opens new tab and Sirius XM (SIRI.O) New Tab, opens new tab, and exited its investment in computer maker HP (HPQ.N) New Tab, opens new tab. It bought just $2.7 billion of stocks in the quarter. Wednesday's filing does not identify which investments were made by Buffett or his portfolio managers Todd Combs and Ted Weschler. Buffett, 93, has run Berkshire since 1965. The conglomerate also owns dozens of businesses including the Geico car insurer, BNSF railroad, energy and industrial companies, and consumer brands such as Benjamin Moore, Dairy Queen, Duracell, Fruit of the Loom and See's Candies. Sign up here. https://www.reuters.com/markets/us/berkshire-reveals-672-billion-stake-insurer-chubb-2024-05-15/