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Tag: Commodity markets

  • Indonesia tightens control on nickel as the US and China scramble for minerals

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    HANOI, Vietnam — Indonesia is tightening state control over the world’s largest nickel supply after years of betting the metal would anchor a homegrown electric-vehicle industry, and just as global demand begins shifting away from heavy reliance on nickel.

    The move could still ripple through global EV supply chains as the United States and China compete for critical minerals. Indonesia sits at the center of the nickel market: its share of global supply jumped to about 60% in 2024 from 31.5% in 2020, according to S&P Global Market Intelligence, after former President Joko Widodo banned raw ore exports, drawing a surge of Chinese-backed investment into refining.

    Jakarta hoped that control over nickel would underpin a fully domestic EV industry, from mining and batteries to finished cars. Experts say that promise was used to justify forest clearing and mining expansion in the name of the energy transition, even as climate risks deepened.

    In 2025, Indonesia cracked down on what it called illegal exploitation of natural resources, saying many mining and plantation licenses were tainted by bribery or never properly approved. Authorities say they have seized more than 4 million hectares (9.8 million acres) of mines, palm oil plantations and processing sites, levied $1.7 billion in fines, and could seize another 4.5 million hectares this year.

    But analysts warn the crackdown is coming just as nickel’s payoff is starting to fade, with many Chinese EVs shifting to battery chemistries that use far less of the metal, relying instead on iron-based designs.

    “The forests have been exploited to the brim,” said Putra Adhiguna of the Jakarta-based Energy Shift Institute. “But you never got the electric-vehicle value chain.”

    China plays the leading role in Indonesia’s nickel sector, using the metal to underpin its stainless steel and clean-energy industries.

    The world’s largest nickel reserves are concentrated on the Indonesian island of Sulawesi, which accounts for more than half of global nickel mine production, according to the U.S.-based Institute for Energy Economics and Financial Analysis or IEEFA.

    China has sourced nickel from Indonesia for decades, but the relationship deepened after Jakarta banned raw ore exports in 2020, drawing a surge of Chinese investment into smelters.

    Nickel shipments to China jumped, with imports of nickel matte — a semiprocessed material used in battery chemicals and alloys — rising nearly 28-fold between 2020 and 2023, more than 90% of it from Indonesia, according to trade data. Over the same period, North and South America’s combined share of global nickel output fell from 16% to 7%, while Europe’s share dropped from 35% to 10%, according to the International Nickel Study Group, a Lisbon-based intergovernmental organization.

    Meanwhile, mining drove the loss of about 370,000 hectares (roughly 914,000 acres) of Indonesian forests between 2001 and 2020 — more than in any other country — according to an analysis by the World Resources Institute. More than a third of that loss was old-growth rainforests which hold vast carbon stocks and are crucial for limiting climate change.

    The heavy use of coal to run Indonesia’s nickel smelters has also slowed the country’s energy transition, adding new fossil-fuel demand even as it tries to cut emissions. A 2024 analysis by the IEEFA found that major nickel producers emitted about 15 million metric tons (16.5 million U.S. tons) of greenhouse gases in 2023, largely because of coal reliance.

    In one of the most public nickel-related seizures last year, Indonesian soldiers accompanied by a local television crew, took control of part of the world’s largest nickel mine.

    Mostly owned by Chinese metals giant Tsingshan Holding Group, the mine has caused deforestation, air and water pollution and increased coal-fired emissions, while displacing communities, harming livelihoods and exposing residents to health risks, according to a 2024 report by the nonprofit group Climate Rights International.

    The move wasn’t aimed at environmental protection or restoring forestry safeguards, said Bhima Yudhistira, with the Jakarta-based Center of Economic and Law Studies or CELIOS.

    “There is no guarantee things will get better,” he said. They could get “even worse.”

    Indonesia’s effort to turn its nickel reserves into the backbone of a domestic EV industry drew early interest from investors in South Korea and China but has fallen short of expectations.

    In July 2024, South Korea’s Hyundai Motor Group and LG Energy Solution opened Indonesia’s first EV battery-cell plant, with annual capacity to supply more than 150,000 electric vehicles. But in April 2025, LG Energy Solution withdrew from a larger $8.4 billion battery investment, citing market and investment conditions.

    An EV plant is still being built by Chinese automaker BYD. China’s CATL, the world’s largest EV battery maker is constructing a battery factory with Indonesian state firms.

    Indonesia’s EV market, is growing quickly but remains small.

    The country sold more than 43,000 electric vehicles in 2024, accounting for about 5% of total car sales, according to the Indonesian Business Council. Public charging infrastructure is limited, with around 1,500 stations nationwide in 2024.

    Even if Indonesia produced 1 million EVs a year — equal to total annual auto sales — and favored nickel-rich batteries, that would still consume less than 1% of its national nickel output, according to the Energy Shift Institute.

    EV makers are shifting to lithium iron phosphate, or LFP, batteries, reducing the need for nickel and cobalt. LFP batteries are cheaper, more stable and longer lasting. They’re used in nearly half of all EVs, the International Energy Agency found.

    Analysts say Indonesia’s nationalization drive could loosen Beijing’s grip on parts of the supply chain, potentially giving Jakarta more leverage to court U.S. buyers and investors.

    One potential concession by Indonesia in long drawn-out trade negotiations with the administration of U.S. President Donald Trump, expected to wrap up soon, would be to lift the ban on raw nickel exports to the U.S.

    Indonesia already has invited the U.S. to invest in its critical minerals sector as part of ongoing tariff negotiations between the two countries, though it’s caught in a tricky position.

    “How does Indonesia straddle between the two superpowers who both want to gain control of the national resource that Indonesia has?” said Li Shuo, director of the Asia Society Policy Institute’s China Climate Hub.

    Other Southeast Asian countries similarly “sandwiched” between the U.S. and China are watching Indonesia closely, Li said.

    “Make no mistake, it’s going to be very difficult,” he said.

    Indonesia’s land seizures risks further destabilizing its nickel industry, added Yudhistira with CELIOS. Foreign investors monitoring the situation are likely to hesitate before committing new capital to Indonesia-based mining and processing projects, he said.

    “This is making the future of nickel, both mining and downstream processing, unknown,” Yudhistira said. “Uncertainty is very costly for investors.”

    ___

    Delgado reported from Bangkok, Thailand. Associated Press writer Edna Tarigan in Jakarta contributed to this report.

    ___

    The Associated Press’ climate and environmental coverage receives financial support from multiple private foundations. The AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.

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  • Markets show mixed reactions after US capture of Venezuelan leader

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    BANGKOK — Oil prices fell back Monday while the prices of precious metals surged as markets registered a mixed reaction to the U.S. capture of Venezuelan President Nicolas Maduro in a weekend raid.

    Share prices opened higher, with benchmarks in South Korea and Japan again setting fresh records. U.S. futures were flat after stocks eked out small gains Friday on Wall Street.

    Shortly after trading began, U.S. benchmark crude oil rose slightly. But it later was trading 23 cents lower at $57.09 per barrel. Brent crude, the international standard, gave up 17 cents to $60.58 per barrel.

    After years of neglect and international sanctions, Venezuela’s oil industry is in disrepair. It could take years and major investments before production can increase dramatically. But some analysts expect Venezuela could double or triple its current output of about 1.1 million barrels of oil a day to return to historic levels fairly quickly.

    With oil levels already plentiful, crude has been trading at its lowest level in about six months.

    In any case, the U.S. move was reverberating through financial markets as traders maneuvered to account for the uncertainty brought on President Donald Trump’s unusual military operation and his insistence that the U.S. will be running Venezuela following its Maduro’s ouster.

    The price of gold rose 1.9%, while silver jumped 5.7%.

    Such assets are often considered safe havens in times of geopolitical turmoil.

    “Investors are happy to own risk, but they want insurance in the drawer. This is confidence with a hedge, not euphoria,” Stephen Innes of SPI Asset Management said in a commentary.

    Share prices in Asia shot sharply higher.

    In Tokyo, the Nikkei 225 jumped 3% to 51,853.53. The index closed at a year end high for 2025 and only resumed trading on Monday.

    “Looking at the environment surrounding the markets, continuously, there are various risk factors. We must keep an eye on geopolitical risks in Ukraine, the Middle East and East Asia, the U.S.-China trade war, monetary policies in other countries and their development, and corporate performance trends in Japan,” Hiromi Yamaji, CEO of the Japan Exchange Group, said in the traditional New Year opening ceremony.

    South Korea’s Kospi surged 3.1% to 4,441.80. It had ended Friday with a record high close.

    Australia’s S&P/ASX 200 gained 0.1% to 8,733.30, while Taiwan’s benchmark climbed 2.9%.

    In other trading early Monday, the dollar rose to 157.27 Japanese yen from 156.82 yen. The euro slipped to $1.1682 from $1.1726.

    On Friday, U.S. stocks eked out small gains on Wall Street in a wobbly but quiet day of trading to kick off the new year.

    The S&P 500 rose 0.2%, to 6,858.47, coming off a gain of more than 16% in 2025.

    The Dow Jones Industrial Average rose 0.7% to 48,382.39, while the Nasdaq composite fell less than 0.1%, to 23,235.63. The index was weighed down by a 2.2% loss for Microsoft and a 2.6% decline for Tesla, after it reported falling sales for a second year in a row.

    Nvidia, Microsoft and Tesla are among the most valuable companies in the world and their outsized valuations give them more influence on the stock market’s direction. That includes sometimes pushing the market up and down from hour to hour.

    Furniture companies gained ground following President Donald Trump’s move to delay increased tariffs on upholstered furniture. RH rose 8% and Wayfair rose 6.1%.

    This week is the first full week of the new year. It will bring several closely watched economic updates, some of the last big updates the Fed sees before its next meeting at the end of January.

    On the agenda are private reports on the status of the services sector, which is the largest part of the U.S. economy, along with consumer sentiment. Government reports on the job market will also be released. The hope is they’ll help paint a clearer picture of how various parts of the U.S. economy closed out 2025 and where it might be headed in 2026.

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  • Enbridge $1.4 Billion Project Aims to Boost Canadian Oil Flow to U.S. Refineries

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    Pipeline operator Enbridge ENB 0.51%increase; green up pointing triangle will push ahead with a $1.4 billion expansion of its core network to boost deliveries of Canadian heavy oil and reach key refining markets in the U.S. Midwest and Gulf Coast.

    The Canadian energy company said Friday it reached a final investment decision on the first phase of a project to optimize its Mainline network, which is forecast to add egress capacity from Canada that will support increased production in the country and connect with what it described as the best refining markets in North America.

    Copyright ©2025 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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    Robb M. Stewart

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  • China Is Filling Up Its Oil Reserves Fast

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    China has spent months building up its oil reserves. That might come in handy in the wake of the new sanctions the U.S. recently imposed on Russian crude.

    During the first nine months of the year, the world’s second-largest economy imported on average more than 11 million barrels of oil a day, an amount above the daily production of Saudi Arabia, according to official customs data. Analysts estimate 1 million to 1.2 million of those barrels were stashed in reserves each day.

    Copyright ©2025 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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    Rebecca Feng

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  • Procter & Gamble fiscal 1Q results top Street, sees less of an impact from tariffs for fiscal 2026

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    Procter & Gamble fiscal first-quarter performance managed to top Wall Street’s view and the consumer products maker now foresees less of an impact from tariffs for fiscal 2026.

    Shares of the maker of products such as Crest toothpaste, Tide detergent and Charmin toilet paper rose about 1% in morning trading Friday.

    For the three months ended Sept. 30, P&G earned $4.75 billion, or $1.95 per share. Removing restructuring costs, earnings were $1.99 per share.

    That handily beat the $1.90 per share analysts surveyed by Zacks Investment Research were calling for.

    Revenue totaled $22.39 billion, topping Wall Street’s estimate of $22.15 billion. Sales climbed 6% for the beauty segment, which includes Head & Shoulders, Pantene and Olay. Grooming sales, featuring Braun and Gillette, rose 5%.

    The Cincinnati-based company is now expecting tariffs leading to $400 million in after-tax costs for fiscal 2026. That’s down from a prior forecast of $800 million in after-tax costs.

    In July P&G said that it would raise prices on about a quarter of its products in the U.S. in part due to higher costs from President Donald Trump’s tariffs. The company also said it would offer improved features in the products. That announcement came three months after P&G said that it was doing whatever it could to reduce higher costs from Trump’s expansive tariffs, from shifting sourcing to changing formulation to avoid duties.

    The impact of tariffs on many companies remains in flux. Late Thursday President Donald Trump announced he’s ending “all trade negotiations” with Canada because of a television ad opposing U.S. tariffs that he said misstated the facts and called “egregious behavior” aimed at influencing U.S. court decisions. More than three-quarters of Canadian exports go to the U.S., and nearly $3.6 billion Canadian ($2.7 billion U.S.) worth of goods and services cross the border daily.

    Looking ahead, P&G still anticipates fiscal full-year earnings between $6.83 and $7.09 per share. The company also kept its guidance for sales growth of 1% to 5%.

    Analysts polled by FactSet predict full-year earnings of $6.97 per share.

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  • Beyond Meat shares briefly sizzle on Walmart deal and meme stock interest

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    Beyond Meat’s shares briefly sizzled Wednesday before heading back down again.

    The plant-based meat company’s shares more than doubled early Wednesday before closing at $3.58 per share, which was down 1%. Still, it was a surprising comeback for a stock that was trading at an all-time low of 50 cents per share late last week.

    Investors cheered Beyond Meat’s announcement Tuesday that it’s increasing the availability of some of its products at U.S. Walmart stores. Beyond Meat said that its chicken pieces, Korean BBQ-style steak and burger six-packs will now be easier to find in more than 2,000 Walmart stores.

    Beyond Meat also launched a direct-to-consumer website this week, which will try to build buzz by offering limited releases of new products.

    But perhaps the biggest driver of interest in Beyond Meat is Roundhill Investments, which added Beyond Meat to its Meme Stock ETF, or exchange-traded fund, on Monday. The fund consists solely of meme stocks, which are stocks that gain popularity and trading volume based on social media hype rather than a company’s financial performance.

    Investors have been sporadically turning to meme stocks throughout 2025 in an effort to find bargains amid a very pricey stock market. The stocks are often the target of “short sellers,” or investors betting against the stock.

    Beyond Meat was the darling of the plant-based meat industry when it went public on the Nasdaq stock exchange in 2019.

    But in recent years the El Segundo, California-based company has been struggling with weak demand for its burgers, sausages, tenders and other products. Beyond Meat’s net revenue was down 15% in the first six months of this year.

    Beyond Meat’s stock price cratered last week after the company announced the expiration of lock-up restrictions on some of its 326 million shares of new stock as part of a plan to help it reduce its debt load and extend the time until its debt matures. The lock-up had prevented shareholders from selling the stock but now they were free to do so.

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  • World shares retreat after worries over bank lending pull Wall Street lower

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    MANILA, Philippines — MANILA, Philippines (AP) — World shares skidded Friday following a retreat on Wall Street driven by concerns over banks’ loan portfolios.

    The future for S&P 500 fell 1.3% while that for the Dow Jones Industrial Average shed 1%. Oil prices were lower while the price of gold climbed to over $4,383 an ounce, and was last trading at $4,356.50 per ounce, as Washington and Beijing swapped harsh words over trade.

    In early European trading, a sell-off of bank and financial shares weighed on regional indexes. Germany’s DAX slumped 2% to 23,783.64. Britain’s FTSE 100 fell 1.5% to 9,293.24 while in Paris, the CAC 40 shed nearly 0.8% to 8,126.52.

    In Asia, Japan’s Nikkei 225 fell 1.4% to 47,582.15, tracking U.S. losses. Uncertainty over the choice of a new prime minister has also weighed on investor sentiment.

    Conservative lawmaker Sanae Takaichi was elected to head the ruling Liberal Democratic Party but last week’s collapse of its coalition with the Buddhist-backed Komeito cast doubt over whether she would garner enough support in the lower house of parliament to prevail in a vote expected next week.

    Takaichi has led efforts to form a new alliance with the Osaka-based Japan Innovation Party, which would improve her chances of becoming Japan’s first female prime minister.

    In Chinese markets, shares fell as trade tensions with Washington intensified. Hong Kong’s Hang Seng index slumped 2.5% to 25,247.10, while the Shanghai Composite index slid nearly 2% to 3,839.76.

    Traders also remained cautious ahead of Monday’s release of economic data and an important meeting of the ruling Communist Party leadership next week.

    South Korea’s Kospi closed nearly flat at 3,748.89, erasing earlier gains amid optimism over progress in trade talks with the U.S.

    Data released on Friday showed South Korea’s seasonally adjusted unemployment rate slid to 2.5% in September from 2.6% in August.

    Australia’s S&P/ASX 200 lost 0.8% to 8,995.30, retreating from the previous day’s record high. Energy and tech stocks led the decline.

    Taiwan’s Taiex dropped nearly 1.3% while in India, the Sensex rose 0.4%.

    On Wall Street, stocks fell Thursday as worries flared over the financial health of midsized banks.

    The S&P 500 slid 0.6% to 6,629.07, in its latest up-and-down day. The Dow Jones Industrial Average dropped 0.7% to 45,952.24, and the Nasdaq composite lost 0.5% to 22,562.54.

    Salt Lake City-based Zions Bancorp. tumbled 13.1% after the bank said its profit for the third quarter will take a hit because of a $50 million charge-off related to loans made to a pair of borrowers. Zions said it found “apparent misrepresentations and contractual defaults” by the borrowers and several people who guaranteed the loans, along with other irregularities.

    Another bank, Western Alliance Bancorp, dropped 10.8% after saying it has sued a borrower, alleging fraud. It also said it’s standing by its financial forecasts given for 2025.

    Scrutiny is rising on the quality of loans that banks and other lenders have broadly made following last month’s Chapter 11 bankruptcy protection filing of First Brands Group, a supplier of aftermarket auto parts. The question is whether the hiccups are just a collection of one-offs or a signal of something larger threatening the industry.

    “The Street’s been dining on rate cut and AI optimism for months, but this week the waiter brought something no one ordered: the return of the credit bogeyman,” Stephen Innes of SPI Asset Management said in a commentary.

    “Regional banks have become the canaries in the credit coal mine, and their chirping sounds suspiciously weak,” he said.

    U.S. companies broadly are under pressure to deliver stronger profits after the S&P 500 surged 35% from a low in April. To justify those gains, which critics say made their stock prices too expensive, companies will need to show they’re making much more in profit and will continue to do so.

    In other dealings on Friday, benchmark crude oil lost 61 cents to $56.85 per barrel. Brent crude, the international standard, gave up 64 cents to $60.42 per barrel.

    The U.S. dollar fell to 149.70 Japanese yen from 150.44 yen. The euro rose to $1.1703 from $1.1688.

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  • Asian shares are mostly lower following Wall Street’s pause from its feverish rally

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    MANILA, Philippines — MANILA, Philippines (AP) — Asian shares mostly fell on Friday, after a respite from Wall Street’s recent feverish rally. The price of gold also pulled back from record highs following recent torrid runs.

    U.S. futures and oil prices were higher.

    Nealy all Asian indexes were down, with the exception of South Korea’s Kospi, which climbed 1.3% to 3,596.36 as trading reopened after a holiday.

    The surge was fueled by a rally of tech shares including SK Hynix, which was up nearly 7%. Samsung Electronics rose 5.4%, boosted by news that Nvidia-backed Reflection AI had raised $2 billion, raising its market value to $8 billion.

    Japan’s Nikkei 225 fell 1% to 48,087.75, pulling back from big gains the previous day after data showed producer prices rose more than expected in September.

    Hong Kong’s Hang Seng index shed 0.8% to 26,534.65, while the Shanghai Composite index slipped 0.5% to 3,913.98.

    Australia’s S&P/ASX 200 slid 0.1% to 8,959.80. Taiwan’s stock market was closed for a holiday.

    On Thursday, the S&P 500 slipped 0.3% from its latest all-time high for just its second loss in the last 10 days, closing at 6,735.11. The Dow Jones Industrial Average dropped 0.5% to 46,358.42, and the Nasdaq composite edged down by 0.1% to 23,024.63.

    Gold also fell following its stellar rally this year, losing 2.4% to drop back below $4,000 per ounce, while Treasury yields held relatively steady in the bond market. They’re taking a moment following big runs driven in large part by expectations that the Federal Reserve will cut interest rates to support the economy.

    Financial markets have been climbing so relentlessly, including a 35% leap for the S&P 500 from a low in April, that worries are mounting that prices may have shot too high. Concerns are particularly strong about the frenzy lifting stocks related to artificial-intelligence technology.

    Dell Technologies sank 5.2% for the biggest loss in the S&P 500, but that only trimmed its surge since talking up its AI growth opportunities at an investment conference earlier in the week. The stock was still up nearly 11% for the week so far.

    Tesla also weighed on the market after falling 0.7%. The National Highway Traffic Safety Administration opened a preliminary evaluation of its “Full Self-Driving” system due to safety concerns.

    Those losses helped offset a 4.3% ascent for Delta Air Lines, which reported a stronger profit for the summer than analysts expected.

    Delta also forecasted a range for profit during the year’s final three months whose midpoint topped analysts’ estimates. Its president, Glen Hauenstein, highlighted a broad-based acceleration in sales trends over the last six weeks, including for domestic business travel.

    Such corporate reports have gained importance since they offer insights into the strength of the U.S. economy after U.S. government shutdown is delayed reports that usually serve that purpose. This is the second week where the U.S. government has not published its update on unemployment claims, for example, a report that usually helps guide Wall Street’s trading each Thursday.

    In other dealings early Friday, U.S. benchmark crude oil added 10 cents to $61.61 per barrel. Brent crude, the international standard, edged up 5 cents to $65.27 per barrel.

    The U.S. dollar fell to 152.74 Japanese yen from 153.05 yen. The euro rose to $1.1572 from $1.1569.

    ___

    AP Business Writers Stan Choe and Matt Ott contributed.

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  • The Black Market for Oil Blunts Trump’s India Tariffs

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    Based on what’s happening in the black market for oil, the White House’s new import levy on India is backfiring.

    President Trump last week doubled India’s tariff rate to 50% to punish it for buying sanctioned Russian oil. Indian refineries have become major buyers of Moscow’s crude since the war in Ukraine began.

    Copyright ©2025 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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    Carol Ryan

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  • Gold prices extend gains to hit new record on Fed rate cut optimism

    Gold prices extend gains to hit new record on Fed rate cut optimism

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    One kilogram gold bullion at the YLG Bullion International Co. headquarters in Bangkok, Thailand, on Friday, Dec. 22, 2023. 

    Bloomberg | Bloomberg | Getty Images

    Gold prices continued to notch new records Wednesday, lifted by increasing conviction that the Federal Reserve will cut interest rates in September following comments from Fed Chair Jerome Powell.

    Spot gold prices rose 0.5% to $2,482.29 per ounce, hitting an all-time high according to LSEG data. Gold futures climbed to $2,478.4 an ounce.

    On Monday, Powell said the Fed won’t wait for inflation to reach the central bank’s 2% target before it begins cutting, due to the delay in policy effects. He said the Fed is looking for “greater confidence” that inflation will return to the 2% level. The monthly inflation rate dipped in June — the first time in over four years.

    And that has given market watchers confidence. According to the CME FedWatch tool, traders are convinced the Fed will cut rates by September. As interest rates fall, gold tends to become more appealing compared to fixed-income assets such as bonds.

    “The move has been ignited by signs of slowing inflation. That has been followed up by weak economic data,” ANZ’s senior commodity strategist Daniel Hynes wrote in a note.

    Gold prices have been breaching new highs in recent months due to its appeal as a safe-haven asset against the backdrop of escalating Middle East tensions, as well as central banks’ purchase of bullion.

    “Gold’s ability to find support in any condition this year is worth highlighting,” said Vivek Dhar, Commonwealth Bank of Australia’s director of mining and energy commodities research.

    “These drivers defied a stronger US dollar, which was largely driven by the market delaying expectations of Fed Fund rate cuts,” said the research analyst, adding that gold prices could rise above the bank’s forecast of $2,500 per ounce by the end of the year.

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  • The AP is setting up a sister organization seeking grants to support local and state news

    The AP is setting up a sister organization seeking grants to support local and state news

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    NEW YORK — The Associated Press says it is setting up a sister organization that will seek to raise money in support of state and local news reporting, as the crisis in that sector shows little sign of abating.

    The organization, which will have a board of directors independent of the AP, will solicit philanthropic spending to boost this news coverage, both within the AP and through outside organizations, the news outlet said Tuesday.

    “We feel we have to lean in at this point, not pull back,” said Daisy Veerasingham, the AP’s president and CEO. “But the supporting mechanism — the local newspaper market that used to support this — can’t afford to do that anymore.”

    Veerasingham said she’s been encouraged by preliminary talks with some funders who have expressed concern about the state of local journalism.

    Like other news organizations, the AP has turned to philanthropies for help in recent years, accepting grants totaling $60.9 million over the past seven years. It has used this money to expand coverage in certain subject areas, such as climate and religion.

    The local news industry has collapsed over the past two decades, with the number of journalists working in newspapers dropping from 75,000 to 31,000 in 2022, according to Northwestern University. More than half of the nation’s counties have no local news outlets or only one.

    While the AP has similarly cut back on staffing in the 50 states, it refused on Tuesday to detail the extent.

    The organization has recently announced collaborations to share news with several nonprofit news outlets, including the Texas Tribune, CalMatters, South Dakota News Watch, the Honolulu Civil Beat and others.

    “We want to add new products and services to help the industry,” Veerasingham said.

    AP in particular can play an important role in bolstering coverage of government and political news in the states, said Tim Franklin, who leads the local news initiative at Northwestern’s Medill journalism school. The Pew Research Center has detailed that there are fewer full-time reporters working in statehouses than there were a decade ago.

    Led by the Knight Foundation and MacArthur Foundation, an initiative launched last year pledged $500 million to build local news sources and help existing ones survive and make digital transitions. But the scope of the problem is much larger, Franklin said.

    With fewer news sources, Franklin worries about the spread of misinformation and the growth of partisan local news outlets wreaking havoc on the upcoming election season.

    “The bottom line is the need to find a sustainable model for independent local news in this country,” he said.

    Once funded primarily by newspaper members of its cooperative, the AP has been forced to diversify in recent years, a need driven home when the Gannett and McClatchy news chains said earlier this year they will stop using AP journalism.

    Besides philanthropy, the AP has been more aggressively marketing its own news website and asking for reader donations. “We believe there is a gap in the U.S. market, in the consumer arena, for people who want independent, fact-based, non-partisan news, and that’s the role that the AP plays in the ecosystem,” Veerasingham said.

    The AP offers a range of services to the industry and outside — serving as the exclusive commercial photo partner of the NFL, for example. It was among the first news organizations to make a deal with an artificial intelligence company to license its archive of news stories.

    “Any media organization is going to have to have a mixed portfolio in the way that it supports itself,” Veerasingham said.

    ___

    David Bauder writes about media for The Associated Press. Follow him at http://twitter.com/dbauder.

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  • Enron Fast Facts | CNN

    Enron Fast Facts | CNN

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    CNN
     — 

    Here’s a look at Enron, an energy trading company that collapsed after a massive accounting fraud scheme was revealed. Its 2001 bankruptcy filing was the largest in American history at the time. Estimated losses totaled $74 billion.

    Enron was ranked as America’s fifth largest company by Fortune magazine in 2002, despite its 2001 bankruptcy filing.

    An independent review published in 2002 detailed how executives pocketed millions of dollars from complex, off-the-books partnerships while reporting inflated profits to shareholders.

    Executives including Kenneth Lay and Jeffrey Skilling were prosecuted for fraud-related crimes.

    Key figures sold their stock shortly before the company announced a sharp downturn in earnings.

    Lower-level employees were encouraged to invest in company stock for their retirement savings just before the company collapsed. The workers later filed a class action lawsuit and won an $85 million settlement.

    1985 – Houston Natural Gas merges with Omaha-based InterNorth to form Enron.

    1986 – Lay is appointed chairman and CEO of Enron.

    1989 – Enron enters the natural gas commodities trading market.

    1990 – Skilling, an energy consultant, is hired to run a new subsidiary called Enron Finance Corp.

    February 12, 2001 – Skilling becomes CEO while Lay stays on as chairman.

    August 14, 2001 – Skilling resigns and Lay becomes CEO again.

    August 2001 – Sherron Watkins, a vice president, warns Lay that the company could “implode in a wave of accounting scandals.”

    October 16, 2001 – Enron announces a third-quarter loss of $618 million. The company later reveals that it overstated earnings dating back to 1997.

    October 31, 2001 – The company discloses that it is under formal investigation by the Securities and Exchange Commission.

    November 9, 2001 – Enron confirms that it has agreed to be purchased by a rival company, Dynegy for $9 billion. On November 28, Dynegy announces it has terminated merger talks with Enron.

    December 2, 2001 – Enron files for Chapter 11 bankruptcy protection.

    January 9, 2002 – The US Department of Justice opens a criminal investigation into Enron’s collapse.

    January 10, 2002 – Arthur Andersen LLP, the accounting firm that handled Enron’s audits, discloses that its employees had destroyed company documents.

    January 15, 2002 – The New York Stock Exchange suspends trading of Enron shares.

    January 17, 2002 – Enron ends its partnership with Arthur Andersen.

    January 23, 2002 – Lay resigns as CEO. He later steps down from the board of directors.

    January 25, 2002 – Former Enron vice chairman J. Clifford Baxter is found dead in an apparent suicide.

    February 12, 2002 – Lay invokes his Fifth Amendment right before the Senate Commerce Committee.

    March 14, 2002 – The DOJ indicts Arthur Andersen for obstruction of justice. A jury later returns a guilty verdict for the accounting firm. The Supreme Court later overturns the conviction.

    February 19, 2004 – Skilling is charged with 35 counts of fraud and insider trading. He pleads not guilty.

    July 7, 2004 – Lay is indicted. He is charged with conspiracy, securities fraud, wire fraud, bank fraud and making false statements. During his arraignment the next day, he pleads not guilty to all 11 charges and is released on $500,000 unsecured bond.

    May 25, 2006 – Skilling and Lay are convicted of conspiracy and fraud. Skilling is also convicted on one count of insider trading and five counts of making false statements. The jury acquits Skilling on nine additional counts of insider trading.

    July 5, 2006 – Lay dies of a heart attack while awaiting sentencing.

    September 8, 2008 – A class action lawsuit filed by shareholders and investors is settled in federal court. The $7.2 billion settlement will be paid out by a group of banks accused of participating in the accounting fraud scheme.

    May 11, 2009 – Skilling files a petition with the Supreme Court to overturn his conviction after appeals with the lower courts fail.

    May 9, 2010 – “Enron,” a musical about the company’s collapse, closes on Broadway 12 days after opening amid slow ticket sales.

    April 16, 2012 – The Supreme Court rejects Skilling’s appeal.

    June 21, 2013 – A federal judge reduces Skilling’s sentence by more than 10 years. In return, Skilling agrees to stop challenging his conviction and forfeit roughly $42 million that will be distributed among the victims of the Enron fraud.

    December 8, 2015 – The SEC announces that it has obtained a summary judgment against Skilling, permanently barring him from serving as an officer or director of a publicly held company. The judgment settles a long-running civil suit by the SEC.

    February 21, 2019 – Skilling is released after serving over 12 years in federal prison.

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  • OPEC Fast Facts | CNN

    OPEC Fast Facts | CNN

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    CNN
     — 

    Here’s a look at the Organization of the Petroleum Exporting Countries, headquartered in Vienna, Austria.

    The purpose of OPEC is to “coordinate and unify the petroleum policies of its Member Countries and ensure the stabilization of oil markets in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers and a fair return on capital for those investing in the petroleum industry.”

    OPEC members collectively supply about 28.89% of the world’s crude oil production.

    Together, OPEC members control about 79.49% of the world’s total proven crude reserves.

    OPEC member countries monitor the market and decide collectively to raise or lower oil production in order to maintain stable prices and supply.

    A unanimous vote is required on raising or lowering oil production.

    Each member country controls the oil production of its country, but OPEC aims to coordinate the production policies of member countries.

    Oil and energy ministers from OPEC member countries usually meet twice a year to determine OPEC’s output level. They also meet in extraordinary sessions whenever required.

    Read More: Oil and Gasoline Fast Facts

    Algeria – 1969-present
    Congo – 2018-present
    Equatorial Guinea – 2017-present
    Gabon – 1975-1995; 2016-present
    Iran – 1960-present
    Iraq – 1960-present
    Kuwait – 1960-present
    Libya – 1962-present
    Nigeria – 1971-present
    Saudi Arabia – 1960-present
    United Arab Emirates – 1967-present
    Venezuela – 1960-present

    Angola – 2007-2024
    Ecuador – 1973-1992; 2007-2020
    Indonesia – 1962-2009; 2016
    Qatar – 1961-2019

    September 14, 1960 – OPEC is formed in Baghdad, Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.

    November 6, 1962 – OPEC is registered with the United Nations Secretariat (UN Resolution No. 6363).

    1973-1974 – Due to United States support of Israel in the Arab-Israeli conflict, the members of OPEC decide to raise the cost of oil from $3/barrel to around $12/barrel.

    October 1973 – OPEC issues an embargo against the United States, halting oil exports. Customers in the United States experience long lines at gas stations and shortages.

    March 18, 1974 – At an OPEC meeting, seven members lift the ban on exports to the United States: Algeria, Saudi Arabia, Kuwait, Qatar, Bahrain, Egypt and Abu Dhabi. Libya and Syria refuse to drop the ban, and Iraq boycotts the talks.

    December 31, 1974 – Libya lifts its oil embargo against the United States.

    November 2007 – Ecuador rejoins OPEC after a 15-year absence.

    May 2008 – Indonesia announces that it will leave OPEC in 2009.

    January 1, 2009 – Indonesia suspends its membership in OPEC.

    January 1, 2016-November 30, 2016 – Indonesia rejoins OPEC, but suspends its membership after 11 months.

    July 2016 – Gabon rejoins OPEC.

    May 25, 2017 – Equatorial Guinea joins OPEC.

    June 22, 2018 – OPEC announces that the Republic of the Congo has joined the organization.

    December 3, 2018 – Qatar’s state oil company, Qatar Petroleum, announces that the country will leave OPEC on January 1, 2019. One of OPEC’s oldest members, Qatar says it plans to focus on natural gas production.

    January 1, 2020 – Ecuador leaves OPEC.

    March 2020 – To offset the collapse in demand caused by the coronavirus pandemic, OPEC unveils a plan to reduce output among its members by 1 million barrels per day, and says it will seek an additional 500,000 barrels per day in cuts from longstanding allies, including Russia.

    April 1, 2021 – OPEC and allied producers announce that they have agreed to gradually increase their output over the next three months. The move follows a sharp increase in oil prices, and a call from the United States to keep energy affordable.

    October 5, 2022 – OPEC and its allies, known as OPEC+, announce they will cut oil production by 2 million barrels per day, the biggest cut since the start of the pandemic.

    January 1, 2024 – Angola leaves OPEC. Oil minister Diamantino Azevedo said earlier that membership was not serving Angola’s interests.

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  • World’s best spicy foods: 20 dishes to try | CNN

    World’s best spicy foods: 20 dishes to try | CNN

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    CNN
     — 

    Some like it hot – and some like it hotter, still.

    When it comes to the world’s best spicy dishes, we have some of the world’s hottest peppers to thank, along with incredible layers of flavor and a long, spice-loving human history.

    “Spicy food, or at least spiced foods, clearly predates the idea of countries and their cuisine by a very, very long time,” says Indian author Saurav Dutt, who is writing a book about the spiciest foods on the Indian subcontinent.

    “Every spicy ingredient has a wild ancestor,” he says. “Ginger, horseradish, mustard, chiles and so on have predecessors which led to their domestication.”

    Hunter-gatherer groups historically made use of various wild ingredients to flavor their foods, Dutt says, and there are many ingredients all over the world that can lend a spicy taste to a dish or stand on their own.

    Peppers – a headliner for heat – are rated on the Scoville Heat Units scale, which measures capsaicin and other active components of chile peppers. By that measure, the Carolina Reaper is among the hottest in the world, while habaneros, Scotch bonnets and bird’s eye chiles drop down a few rungs on the mop-your-brow scale.

    Redolent with ghost peppers, Scotch bonnets, serranos, chiltepin peppers, mouth-numbing Sichuan peppercorns and more, the following spicy dishes from around the world bring the heat in the most delicious way.

    Ata rodo – Scotch bonnet pepper – brings the fire to Nigeria’s famous spicy soup. Egusi is made by pounding the seeds from the egusi melon, an indigenous West African fruit that’s related to the watermelon.

    In addition to being protein-packed, the melon’s seeds serve to thicken and add texture and flavor to the soup’s mix of meat, seafood and leafy vegetables. Pounded yams are often served alongside this dish, helping to temper the scorch of the Scotch bonnets.

    “The joy of this dish is not only the delightful warming ingredients of cinnamon, cloves, star anise and, of course, the Sichuan peppercorns, but the fact that you can cook exactly what you like in the bubbling spicy broth,” says British-born Chinese chef Kwoklyn Wan, author of “The Complete Chinese Takeout Cookbook.”

    Duck, seafood, chicken, pork, lamb and seasonal vegetables are all fair game for tossing into the pot to simmer in a mouth-numbing broth made with Sichuan peppercorns and dried Sichuan peppers for serious kick (the dipping sauce served on the side often has chile paste, too).

    Also known as Chongqing hot pot, the dish is said to have originated as a popular food among Yangtze River boatmen. It’s enjoyed by those who can handle its heat all over China, not to mention elsewhere around the world.

    Som tam, Thailand

    A green papaya salad with a fiery kick.

    From northeastern Thailand’s spice-loving Isaan province, this fresh and fiery salad is a staple dish at Thai restaurants around the world and is also popular in neighboring Laos.

    Som tam turns to green (unripe) papaya for its main ingredient, which is usually julienned or shredded for the salad. The papaya is then tossed with long beans or green beans and a mix of flavorful Asian essentials that include tamarind juice, dried shrimp, fish sauce and sugar cane paste, among other ingredients. Thai chiles, also called bird’s eye chiles, give the salad its requisite kick.

    Piri-piri chicken, Mozambique and Angola

    The Portuguese introduced this spicy dish also known as peri-peri chicken into Angola and Mozambique as far back as the 15th century, when they mixed African chiles with European ingredients (piri-piri means “pepper pepper” in Swahili). And it’s the perky red pepper of the same name that brings the spiciness to this complex, layered and delicious dish.

    Piri-piri chicken’s poultry cuts are marinated in chiles, olive oil, lemon, garlic and herbs such as basil and oregano for a fiery flavor that blends salty, sour and sweet. The dish is also popular in Namibia and South Africa, where it’s often found on the menu in Portuguese restaurants.

    The glossy red hues dancing on a plate of this popular pork dish, a version of which hails from Mao Zedong’s home province, give a hint about the mouth experience to come. The dish was apparently a favorite of the communist leader, who requested his chefs in Beijing prepare it for him.

    Chairman Mao’s braised pork belly – called Mao shi hong shao rou in China – is often served as the main dish for sharing at a family table and is made by braising chunks of pork belly with soy sauce, dried chiles and spices.

    “It is a very delicious and moreish dish due to the caramelized sugar and dark soy sauce being reduced and all the aromatics (that coat the pork belly),” wrote BBC “Best Home Cook” winner Suzie Lee, author of “Simply Chinese,” in an email to CNN Travel.

    Scotch bonnet peppers give jerk chicken its heat.

    Jamaica’s favorite pepper is the Scotch bonnet, beloved not just for its spiciness but for its aroma, colors and flavor, too, says Mark Harvey, content creator and podcaster at Two On An Island, who was born in Spanish Town, Jamaica.

    “For Jamaicans, the degree of spiciness starts at medium for children and goes up to purple hot,” he says, explaining that the peppers come in green, orange, red and purple hues, growing increasingly spicy in that order.

    Scotch bonnets star in several of the island’s iconic dishes, including escovitch fish, pepper pot soup and curry goat. But you might recognize them most from the ubiquitous jerk chicken and pork smoking roadside everywhere from Montego Bay to Boston Bay, where meat prepared with the peppery marinade is cooked the traditional way, atop coals from pimento tree wood (the tree’s allspice berries are also used in the jerk marinade).

    Popular on the Indonesian islands of Bali and Lombok, in particular, this whole chicken dish is stuffed with an intensely aromatic spice paste (betutu) that usually includes a mashup of fresh hot chile peppers, galangal (a root related to ginger), candlenuts, shallots, garlic, turmeric and shrimp paste, among other ingredients.

    The chicken is then wrapped in banana leaves and steamed, bringing the aromatics out all the more and flavoring the chicken to the max. Best shared, ayam betutu is often presented at religious ceremonies in Bali, but you’ll find it at restaurants specializing in it throughout the islands, too.

    Spicy wings are an American sports bar staple.

    Beer and buffalo chicken wings are as American as, well, hamburgers. And if you’re not eating them alongside a pile of celery sticks and a ramekin of dunking sauce – traditionally blue cheese dip, but ranch works, too – you’re missing half the picture.

    A sports bar staple at chain restaurants such as Buffalo Wild Wings and more refined outposts, too, from Alaska to Maine, “wings” are actually made up of the wing parts called drumettes and wingettes, which have the most meat.

    Buffalo wings, said to have been invented in a bar in Buffalo, New York, in 1964, are among the spiciest preparations (other popular variations include teriyaki wings and honey garlic wings). Make them as fiery as you like using a sauce that includes cayenne pepper, butter, vinegar, garlic powder and Worcestershire sauce.

    A relative of ceviche, this Mexican dish traditionally gets its fire from chiltepín peppers.

    Similar to ceviche but with more bite, this raw marinated shrimp dish from the western Mexican state of Sinaloa (and a staple along the Baja Peninsula, too) tastes as good as it looks.

    Tiny but mighty chiltepín peppers (they look like bright little berries), grown throughout the United States and Mexico, make the spicy magic happen in shrimp aguachiles, which means “pepper water.” If you can’t find those, serrano and jalapeño peppers also do the trick.

    Marinate the raw shrimp with ingredients including lime juice, cilantro, red onion and cucumber and enjoy with crispy tostadas.

    Pad ka prao, Thailand

    A go-to dish when you want something satisfying – but with kick – pad ka prao is a mealtime staple in Thailand, where you’ll find it on offer at street-side stalls and restaurants everywhere from Bangkok to the islands.

    Considered the Thai equivalent of a sandwich or a burger, the dish is a mix of ground pork, spicy Thai chile peppers and holy basil and can be ordered as spicy as you like. Many locals believe it’s best topped with a fried egg with a runny yolk.

    Beef rendang, Indonesia and Malaysia

    A fiery favorite that originated in West Sumatra, versions of beef rendang are also enjoyed in Indonesia’s neighboring countries, including Malaysia and Brunei, as well as the Philippines.

    This flavorful dry curry dish calls on kaffir lime leaves, coconut milk, star anise and red chile, among other spices, to deliver its complexity. It’s often presented to guests and served during festive events.

    The fermented cabbage dish kimchi might be the spicy Korean dish that first comes to mind, but when you want some extra kick, dakdoritang does the trick.

    Comfort food to the max, the chicken stew doubles down on its spiciness with liberal doses of gochugaru (Korean chile powder) and gochujang (Korean chile paste) mixed with rice wine, soy sauce, garlic, ginger and sesame oil in a braising sauce that packs the bone-in chicken pieces with flavor. It’s often served with carrots, onions and potatoes.

    Phaal Curry, Birmingham, England (via Bangladesh)

    This tomato-based British-Asian curry invented in Birmingham, England, curry houses by British Bangladeshi restaurateurs is thought to be one of the spiciest curries in the world.

    “Typically the sauce has a tomato base with ginger, fennel seeds and copious amounts of chile, habanero or Scotch bonnet, peppers,” says Indian author Saurav Dutt.

    As many as 10 pepper types may find their way into phaal curry, he says, including bird’s eye chiles and the bhut jolokia (also known as the ghost pepper, it’s one of the world’s hottest peppers). Even hotter than vindaloo, this dish will absolutely light your mouth up.

    This classic Roman pasta dish’s name gives you an idea of what to expect. “Arrabbiata” means “angry” in Italian. And penne all’arrabbiata pairs the relatively plain penne pasta with fiery flavors from the sauce (sugo all’arrabbiata) in which it’s slathered.

    “The peperoncino (red chile pepper) is what makes this sauce ‘angry’ (arrabbiata) or spicy,” Chris MacLean of Italy-based Open Tuesday Wines said via email.

    To tame the angry peppers in this garlic and tomato-based dish with a good glass of red wine, MacLean says to pair penne all’arrabbiata with a Cesanese, also from Rome’s Lazio region, with its crisp fruit and light tannins.

    “A wine that’s heavy in oak or alcohol would turn up the heat (in the dish) in your mouth and render the wine tasteless,” he warns.

    Chicken is simmered with roasted spices and coconut in this flavorful dish.

    “There’s a saying in South India that you are lucky to ‘eat like a Chettiar,’ ” says Dutt, referring to the Tamil-speaking community in India’s southern Tamil Nadu state credited with creating this spicy dish.

    “Like this chicken dish, the traditional Chettinad dishes mostly used locally sourced spices like star anise, pepper, kalpasi (stone flower) and marati mokku (dried flower pods),” he says.

    The chicken pieces are simmered in a medley of roasted spices and coconut, and it is traditionally served with steamed rice or the thin South Indian pancakes called dosa, fried chapati or naan.

    This Ethiopian dish leans on the fiery berbere spice blend.

    The fiery Ethiopian spice blend called berbere – aromatic with chile peppers, basil, cardamom, garlic and ginger – is instrumental to the flavor chorus that’s doro wat, Ethiopia’s much-loved spicy chicken stew.

    Topped with boiled eggs, the dish almost always finds a place at the table during weddings, religious holidays and other special occasions and family gatherings. If you’re invited to try it in Ethiopia at such an event, consider yourself very lucky indeed.

    Mouth-numbing Sichuan peppercorns bring the X-factor to this popular dish from China’s Sichuan province, which mixes chunks of silken tofu with ground meat (pork or beef) and a spicy fermented bean paste called doubanjiang.

    Mapo tofu’s fiery red color might as well be a warning to the uninitiated – Sichuan cuisine’s defining flavor, málà, has a numbing effect on the mouth called paresthesia that people tend to love or hate.

    A Portuguese-influenced dish from India’s southwestern state of Goa, vindaloo was not originally meant to be spicy, says Dutt. “It originally contained pork, potatoes (aloo) and vinegar (vin), giving you the name,” he says.

    But when the dish was exported to curry houses in the United Kingdom that were mostly run by Muslim Bangladeshi chefs, Dutt says, pork was replaced with beef, chicken or lamb and the dish evolved into a spicier hot curry.

    Ghost pepper flakes and Scotch bonnet peppers are among the peppers giving the dish its scorching taste. But in Goa, you can still find versions of the dish that swing more on the side of milder spices such as cinnamon and cardamom.

    Senegalese cooks are also big fans of Scotch bonnet peppers, named for their resemblance to the Scottish tam o’ shanter hat. And their spice-giving goodness is deployed liberally in one of the West African country’s favorite dishes, the spicy tomato and peanut or groundnut-based stew called mafé.

    Usually made with beef, lamb or chicken, the stew is made even heartier with potatoes, carrots and other root vegetables for one filling feed. Mafé is popular in other West African countries, too, including Mali and Gambia, and it can also be prepared without meat.

    Synonymous with watching the Super Bowl or hunkering down on a cold night, chili is a spicy American staple where you can opt to ratchet up the heat as much as you like.

    There are basically two pure forms of American chili – with or without beans (usually red kidney beans) – says Chef Julian Gonzalez of Sawmill Market in Albuquerque, New Mexico. In Texas, he explains, chili traditionally doesn’t have beans, which puts the focus on the spices and chiles used to flavor it, and he goes with that approach himself.

    “Traditionally chili is seasoned with chili powder, cumin and paprika,” Gonzalez says. From there, you can use other ingredients to make your recipe unique. Adding cayenne pepper is one way to turn up the heat.

    At his restaurant Red & Green, which serves New Mexican cuisine, Gonzalez’s green chile stew, made with pork and no beans, is seasoned with a mix of roasted green New Mexican hatch chiles (half mild and half with heat), onion and garlic powder.

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  • Oil Spills Fast Facts | CNN

    Oil Spills Fast Facts | CNN

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    CNN
     — 

    Here’s a look at oil spill disasters. Spill estimates vary by source.

    1. January 1991 – During the Gulf War, Iraqi forces intentionally release 252-336 million gallons of oil into the Persian Gulf.

    2. April 20, 2010 – An explosion occurs on board the BP-contracted Transocean Ltd. Deepwater Horizon oil rig, releasing approximately 168 million gallons of oil in the Gulf of Mexico.

    3. June 3, 1979 – Ixtoc 1, an exploratory well, blows out, spilling 140 million gallons of oil into the Bay of Campeche off the coast of Mexico.

    4. March 2, 1992 – A Fergana Valley oil well in Uzbekistan blows out, spilling 88 million gallons of oil.

    5. February 1983 – An oil well in the Nowruz Oil Field in Iran begins spilling oil. One month later, an Iraqi air attack increases the amount of oil spilled to approximately 80 million gallons of oil.

    6. August 6, 1983 – The Castillo de Bellver, a Spanish tanker, catches fire near Cape Town, South Africa, spilling more than 78 million gallons of oil.

    7. March 16, 1978 – The Amoco Cadiz tanker runs aground near Portsall, France, spilling more than 68 million gallons of oil.

    8. November 10, 1988 – The tanker Odyssey breaks apart during a storm, spilling 43.1 million gallons of oil northeast of Newfoundland, Canada.

    9. July 19, 1979 – The Atlantic Empress and the Aegean Captain tankers collide near Trinidad and Tobago. The Atlantic Empress spills 42.7 million gallons of oil. On August 2, the Atlantic Empress spills an additional 41.5 million gallons near Barbados while being towed away.

    10. August 1, 1980 – Production Well D-103 blows out, spilling 42 million gallons of oil southeast of Tripoli, Libya.

    Union Oil Company
    January 28, 1969 – Inadequate casing leads to the blowout of a Union Oil well 3,500 feet deep about five miles off the coast of Santa Barbara, California. About three million gallons of oil gush from the leak until it can be sealed 11 days later, covering 800 square miles of ocean and 35 miles of coastline and killing thousands of birds, fish and other wildlife.

    The disaster is largely considered to be one of the main impetuses behind the environmental movement and stricter government regulation, including President Richard Nixon’s signing of the National Environmental Policy Act, the creation of the Environmental Protection Agency in 1970. It also inspired Wisconsin Senator Gaylord Nelson to found the first Earth Day.

    Exxon Valdez
    March 24, 1989 – The Exxon Valdez runs aground on Bligh Reef in Prince William Sound, Alaska, spilling more than 11 million gallons of oil.

    March 22, 1990 – Captain Joseph Hazelwood is acquitted of all but one misdemeanor, negligent discharge of oil. Hazelwood is later sentenced to 1,000 hours of cleaning around Prince William Sound and is fined $50,000.

    July 25, 1990 – At an administrative hearing, the Coast Guard dismisses charges of misconduct and intoxication against Captain Joseph Hazelwood, but suspends his captain’s license.

    October 8, 1991 – A federal judge approves a settlement in which Exxon and its shipping subsidiary will pay $900 million in civil payments and $125 million in fines and restitution. Exxon says it has already spent more than $2 billion on cleanup.

    September 16, 1994 – A federal jury orders Exxon to pay $5 billion in punitive damages to fishermen, businesses and property owners affected by the oil spill.

    November 7, 2001 – The US Court of Appeals for the Ninth Circuit rules that the $5 billion award for punitive damages is excessive and must be cut.

    December 6, 2002 – US District Judge H. Russel Holland reduces the award to $4 billion.

    December 22, 2006 – The Ninth Circuit Court of Appeals reduces the award to $2.5 billion.

    June 25, 2008 – The US Supreme Court cuts the $2.5 billion punitive damages award to $507.5 million.

    June 15, 2009 – The Ninth Circuit Court of Appeals orders Exxon to pay $470 million in interest on the $507.5 million award.

    BP Gulf Oil Spill
    April 20, 2010 – An explosion occurs aboard BP-contracted Transocean Ltd Deepwater Horizon oil rig stationed in the Gulf of Mexico. Of the 126 workers aboard the oil rig, 11 are killed.

    April 22, 2010 – The Deepwater Horizon oil rig sinks. An oil slick appears in the water. It is not known if the leak is from the rig or from the underwater well to which it was connected.

    April 24, 2010 – The US Coast Guard reports that the underwater well is leaking an estimated 42,000 gallons of oil a day.

    April 28, 2010 – The Coast Guard increases its spill estimate to 210,000 gallons of oil a day.

    May 2, 2010 – President Barack Obama tours oil spill affected areas and surveys efforts to contain the spill.

    May 4, 2010 – The edges of the oil slick reach the Louisiana shore.

    May 26, 2010 – BP starts a procedure known as “top kill,” which attempts to pump enough mud down into the well to eliminate the upward pressure from the oil and clear the way for a cement cap to be put into place. The attempt fails.

    June 16, 2010 – BP agrees to create a $20 billion fund to help victims affected by the oil spill.

    July 5, 2010 – Authorities report that tar balls linked to the oil spill have reached the shores of Texas.

    July 10, 2010 – BP removes an old containment cap from the well so a new one can be installed. While the cap is removed, oil flows freely. The new cap is finished being installed on July 12.

    July 15, 2010 – According to BP, oil has stopped flowing into the Gulf.

    August 3, 2010 – BP begins the operation “static kill” to permanently seal the oil well.

    August 5, 2010 – BP finishes the “static kill” procedure. Retired Adm. Thad Allen says this will “virtually assure us there’s no chance of oil leaking into the environment.”

    January 11, 2011 – The National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling releases their full report stating that the explosion of the Deepwater Horizon rig launched the worst oil spill in US history, 168 million gallons (or about 4 million barrels).

    September 14, 2011 – The final federal report is issued on the Gulf oil spill. It names BP, Transocean and Halliburton as sharing responsibility for the deadly explosion that resulted in the April 2010 Gulf of Mexico oil spill.

    January 26, 2012 – A federal judge in New Orleans rules that Transocean, the owner of the Deepwater Horizon rig, is not liable for compensatory damages sought by third parties.

    January 31, 2012 – A federal judge in New Orleans rules that Halliburton is not liable for some of the compensatory damages sought by third parties.

    March 2, 2012 – BP announces it has reached a settlement with attorneys representing thousands of businesses and individuals affected by the 2010 oil spill.

    April 18, 2012 – Court documents are filed revealing the March 2, 2010 settlement BP reached with attorneys representing thousands of businesses and individuals affected by the oil spill. A federal judge must give preliminary approval of the pact, which BP estimates will total about $7.8 billion.

    April 24, 2012 – The first criminal charges are filed in connection with the oil spill. Kurt Mix, a former engineer for BP, is charged with destroying 200-plus text messages about the oil spill, including one concluding that the undersea gusher was far worse than reported at the time.

    November 15, 2012 – Attorney General Eric Holder announces that BP will plead guilty to manslaughter charges related to the rig explosion and will pay $4.5 billion in government penalties. Separate from the corporate manslaughter charges, a federal grand jury returns an indictment charging the two highest-ranking BP supervisors on board the Deepwater Horizon on the day of the explosion with 23 criminal counts.

    November 28, 2012 – The US government issues a temporary ban barring BP from bidding on new federal contracts. The ban is lifted on March 13, 2014.

    December 21, 2012 – US District Judge Carl Barbier signs off on the settlement between BP and businesses and individuals affected by the oil spill.

    January 3, 2013 – The Justice Department announces that Transocean Deepwater Inc. has agreed to plead guilty to a violation of the Clean Water Act and pay $1.4 billion in fines.

    February 25, 2013 – The trial to determine how much BP owes in civil damages under the Clean Water Act begins. The first phase of the trial will focus on the cause of the blowout.

    September 19, 2013 – In federal court in New Orleans, Halliburton pleads guilty to destroying test results that investigators had sought as evidence. The company is given the maximum fine of $200,000 on the charge.

    September 30, 2013 – The second phase of the civil trial over the oil spill begins. This part focuses on how much oil was spilled and if BP was negligent because of its lack of preparedness.

    December 18, 2013 – Kurt Mix, a former engineer for BP, is acquitted on one of two charges of obstruction of justice for deleting text messages about the oil spill.

    September 4, 2014 – A federal judge in Louisiana finds that BP was “grossly negligent” in the run-up to the 2010 disaster, which could quadruple the penalties it would have to pay under the Clean Water Act to more than $18 billion. Judge Carl Barbier of the US District Court for the Eastern District of Louisiana also apportions blame for the spill, with “reckless” BP getting two thirds of it. He says the other two main defendants in the more than 3,000 lawsuits filed in the spill’s wake, Transocean and Halliburton, were found to be “negligent.”

    January 15, 2015 – After weighing multiple estimates, the court determines that 4.0 million barrels of oil were released from the reservoir. 810,000 barrels of oil were collected without contacting “ambient sea water” during the spill response, making BP responsible for a maximum of 3.19 million barrels.

    January 20-February 2, 2015 – The final phase of the trial to determine BP’s fines takes place. The ruling is expected in a few months.

    July 2, 2015 – An $18.7 billion settlement is announced between BP and five Gulf states.

    September 28, 2015 – In a Louisiana federal court, the city of Mobile, Alabama, files an amended complaint for punitive damages against Transocean Ltd., Triton Asset Leasing, and Halliburton Energy Services, Inc., stating that “Mobile, its government, businesses, residents, properties, eco-systems and tourists/tourism have suffered and continue to suffer injury, damage and/or losses as a result of the oil spill disaster.” As of April 20, 2015, Mobile estimated the losses had exceeded $31,240,000.

    October 5, 2015 – BP agrees to pay more than $20 billion to settle claims related to the spill. It is the largest settlement with a single entity in the history of the Justice Department.

    November 6, 2015 – The remaining obstruction of justice charge against Kurt Mix is dismissed as he agrees to plead guilty to the lesser charge of “intentionally causing damage without authorization to a protected computer,” relating to deletion of a text message, a misdemeanor. He receives six months’ probation and must complete 60 hours of community service.

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  • Import prices climb 0.8% in January, up 0.7% minus fuel

    Import prices climb 0.8% in January, up 0.7% minus fuel

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  • Gold prices to hit $2,200 and a ‘dramatic’ outperformance awaits silver in 2024, says UBS

    Gold prices to hit $2,200 and a ‘dramatic’ outperformance awaits silver in 2024, says UBS

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    Gold and silver bars of various sizes lie in a safe on a table at the precious metals dealer Pro Aurum in Munich.

    Sven Hoppe | Picture Alliance | Getty Images

    Gold and silver are expected to climb further in 2024 on expectations that the U.S. Federal Reserve will start cutting interest rates, UBS forecasts.

    “We are expecting gold to be pushed higher by a Fed easing. Also this comes with a weaker dollar” said the investment bank’s precious metals strategist Joni Teves, who expects the metal to hit $2,200 per ounce by the end of the year.

    Gold prices tend to have an inverse relationship with interest rates. As interest rates dip, gold becomes more appealing compared to alternative investments like bonds, which would yield weaker returns in a low interest rate environment. 

    In turn, lower rates weaken the dollar, making gold cheaper for international buyers, driving up demand.

    While there is still much uncertainty on the timing and extent of rate cuts, UBS maintained its expectations for the Federal Reserve to ease policy. Last week, the Fed announced its decision to leave rates unchanged in January, on top of shooting down hopes of a rate cut in March. 

    In a scenario where the Fed is easing, we think silver can do really well. It tends to outperform a move in gold.

    The bullion’s appeal as a safe haven asset has risen since Israel’s war with Hamas began on Oct. 7, which contributed to gold prices notching an all-time high of $2,100 an ounce last month.

    “We do think investors will start to build allocations to gold in an environment where there is a lot of macro uncertainty [and] geopolitical risks,” said Teves.

    Prospects for gold’s “poorer cousin” are also optimistic, with silver on course to “really, really shine.”

    Silver is not as common of a geopolitical and safety haven compared to gold, which partly explains why it has underperformed gold in the last few years, the strategist said. But the tables could turn in its favor when the Fed eases.

    “In a scenario where the Fed is easing, we think silver can do really well. It tends to outperform a move in gold,” Teves said. “Silver has been underperforming gold quite a lot. So there is a lot of catching up to do and I think the move could be quite dramatic,” she added.

    Silver’s performance is tied closely to the health of the overall economy due to its wide industrial applications. The precious metal is commonly incorporated in the manufacturing of automobiles, solar panels, jewelry and electronics.

    Gold last traded at $2,052 per ounce, while silver was priced at $22.69 per ounce.

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  • How RealPage influences rent prices across the U.S.

    How RealPage influences rent prices across the U.S.

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    RealPage software is used to set rental prices on 4.5 million housing units in the U.S. A series of lawsuits allege that a group of landlords are sharing sensitive data with RealPage, which then artificially inflates rents. The complaints surface as housing supply in the U.S. lags demand. Some of the defendant landlords report high occupancy within their buildings, alongside strong jobs growth in their operating regions and slow home construction.

    09:56

    Sat, Feb 3 20248:27 AM EST

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  • Why U.S. renters are taking corporate landlords to court

    Why U.S. renters are taking corporate landlords to court

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    A group of renters in the U.S. say their landlords are using software to deliver inflated rent hikes.

    “We’ve been told as tenants by employees of Equity that the software takes empathy out of the equation. So they can charge whatever the software tells them to charge,” said Kevin Weller, a tenant at Portside Towers since 2021.

    Tenants say the management started to increase prices substantially after giving renters concessions during the Covid-19 pandemic.

    The 527-unit building is located roughly 20 minutes away from the World Trade Center, on the shoreline of Jersey City, New Jersey. A group of tenants at the tower is involved in a sprawling class-action lawsuit against RealPage and 34 co-defendant landlords. The U.S. Department of Justice filed a statement of interest in the case in December 2023, arguing that the complaints adequately allege violations of the Sherman Antitrust Act.

    In November 2023, the attorney general of Washington, D.C., filed a similar but more narrow complaint against RealPage and 14 landlords that collectively manage more than 50,000 apartment units in the District.

    “Effectively, RealPage is facilitating a housing cartel,” said Attorney General of the District of Columbia Brian Schwalb in an interview with CNBC. His office filed the complaint on antitrust grounds. They allege that landlords share competitively sensitive data through RealPage, which then sets artificially high rents on a key slice of the local rental market.

    Office of the Attorney General for the District of Columbia, November 2023

    “Rather than making independent decisions on what the market here in D.C. calls for in terms of filling vacant units, landlords are compelled, under the terms of their agreement with RealPage, to charge what RealPage tells them,” said Schwalb.

    RealPage says its revenue management products use anonymized, aggregated data to deliver pricing recommendations on roughly 4.5 million housing units in the U.S. The company says its tools can increase landlord revenues between 2% and 7%.

    “Just turning the system on will outperform your manual analyst. There’s almost no way it can’t,” said Jeffrey Roper, a former RealPage employee and inventor of YieldStar.

    YieldStar is one of three key revenue management tools offered by RealPage. The software balances prices, occupancy and lease lengths to help property managers optimize their portfolio’s yield. The company feeds data from its models into a newer tool dubbed “AIRM” that considers the effect of credit, marketing and leasing effectiveness.

    RealPage told CNBC that its landlord customers are under no obligation to take their price suggestions. The company also said it charges a fixed fee on each apartment unit managed with its software.

    RealPage was acquired by Miami-based private equity firm Thoma Bravo for $10.2 billion in 2021. In court filings, Thoma Bravo has claimed that it is not liable for the alleged acts of its subsidiary outlined by plaintiffs in the class-action complaints.

    Renters told CNBC they discovered how revenue management software is used in real estate after reading a 2022 ProPublica investigation. Equity Residential investor materials show that the company started to experiment with Lease Rent Options between 2005 and 2008. RealPage acquired the product in 2017.

    “How could we possibly know?” said Harry Gural, a tenant in an Equity Residential property located in the Van Ness neighborhood of Washington, D.C. Gural says he has been involved in legal matters against his landlord’s pricing practices for more than seven years.

    Affiliates of Equity Residential are contesting a separate decision made by a local housing authority in Jersey City regarding prices set on the Portside Towers property. The company has filed a lawsuit in federal court challenging the decision, stating that the decision could result in millions of dollars in refunds for tenants.

    Equity Residential and other defendant landlords declined to comment on ongoing RealPage litigation.

    Redfin reports that asking rents in the U.S. ticked down to $1,964 a month in December 2023, a decline from recent highs. Prices are coming down in markets such as Atlanta and Austin, Texas, where home construction is high. But analysts believe low rates of homebuilding on the U.S. East Coast could give well-located landlords more pricing power.

    “Guys like us that own 80,000 well-located apartments, we’re still in a pretty good spot,” said Equity Residential CEO Mark Parrell in a June 2023 interview with CNBC.

    Watch the
    video above to learn about the rising tide of lawsuits against U.S. corporate landlords.

    CORRECTION: A previous version of this article misstated when Equity Residential purchased Portside Towers.

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  • Oil prices jump after drone attack kills U.S. troops, escalating Mideast crisis

    Oil prices jump after drone attack kills U.S. troops, escalating Mideast crisis

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    Oil futures popped higher Sunday evening, after a drone attack that killed three U.S. service members in northern Jordan, blamed by the White House on Iran-backed militants, marked a major escalation of tensions in the Middle East.

    West Texas Intermediate crude for March delivery
    CL00,
    +1.22%

    CL.1,
    +1.22%

    CLH24,
    +1.22%

    was up $1.09, or 1.4%, at $79.10 a barrel on the New York Mercantile Exchange. March Brent crude
    BRN00,
    +1.15%

    BRNH24,
    +1.14%
    ,
    the global benchmark, gained $1.11, or 1.3%, to trade at $84.66 a barrel on ICE Futures Europe.

    Much will ultimately depend on the U.S. response and whether Iran takes action aimed at shutting down the Strait of Hormuz, Tariq Zahir, managing member at Tyche Capital Advisors, told MarketWatch on Sunday afternoon.

    “We are on the cusp of this escalating, which could seriously impact the flow of crude oil,” he said.

    Three U.S. service members were killed and more than two dozen injured in a drone strike on a U.S. base in northeast Jordan, according to U.S. Central Command. They were the first U.S. fatalities in months of attacks on U.S. bases by Iran-backed militias since the start of the Israel-Hamas war in October.

    President Joe Biden attributed the Sunday attack to an Iran-backed militia group and said the U.S. “will hold all those responsible to account at a time and in a manner (of) our choosing.” News reports said U.S. officials were still working to conclusively identify the precise group responsible for the attack, but have assessed that one of several Iranian-backed groups is to blame.

    Some congressional Republicans called for direct retaliation on Iran.

    “We must respond to these repeated attacks by Iran & its proxies by striking directly against Iranian targets & its leadership. The Biden administration’s responses thus far have only invited more attacks. It is time to act swiftly and decisively for the whole world to see,” wrote Sen. Roger Wicker of Mississippi, the senior Republican on the Senate Armed Services Committee, in a post on X.

    Oil futures rallied last week to their highest since November, but with gains attributed in part to production outages in the U.S. and more upbeat expectations around economic growth.

    “Crude already has the wind to its back, so this will only offer further upside,” Chris Weston, head of research at Australian brokerage Pepperstone told MarketWatch in an email.

    With the U.S. election later this year, “Biden needs to strike a balance between increasing aggression that potentially puts U.S. serviceman lives in danger and could potentially raise the cost of living…while also showing a defiant stance that shows his resolve against terror,” Weston said.

    Oil prices have seen short-lived rallies around developments in the Middle East since the start of the Israel-Hamas war, but have failed to build in a lasting geopolitical risk premium. West Texas Intermediate crude
    CL00,
    +1.22%

    CL.1,
    +1.22%
    ,
    the U.S. benchmark, remains around $15 below its 2023 peak in the mid-$90s set in late September. Brent crude
    BRN00,
    +1.15%
    ,
    the global benchmark, pushed back above $80 a barrel last week.

    Attacks by Iran-backed Houthi militants on Red Sea shipping have forced a rerouting of tankers and cargo ships. For crude, that’s had implications for the physical market but hasn’t interrupted the flow of crude from the Middle East.

    A move by Iran aimed at closing off the Strait of Hormuz, the world’s biggest oil-transportation chokepoint, remains a top worry.

    The strait is a narrow waterway that links the Persian Gulf with the Gulf of Oman and the Arabian Sea. At its narrowest point, the waterway is only 21 miles wide, and the width of the shipping lane in either direction is just two miles, separated by a two-mile buffer zone.


    Energy Information Administration

    Around 21 million barrels a day of crude moved through the waterway in the first half of 2023, equivalent to around a fifth of daily global consumption, according to the U.S. Energy Information Administration.

    The U.S. stock market has largely looked past Middle East tensions, with the S&P 500
    SPX
    returning to record territory this month, while the Dow Jones Industrial Average
    DJIA
    has also set a series of records.

    Dow futures
    YM00,
    -0.20%

    were off 94 points, or 0.3% as Asian trading got under way, while S&P 500 futures
    ES00,
    -0.22%

    fell 12 points, or 0.2%, and Nasdaq-100 futures
    NQ00,
    -0.24%

    lost 0.3%.

    Read: Stock-market rally faces Fed, tech earnings and jobs data in make-or-break week

    Away from oil, there were no signs of a significant surge in demand for instruments that traditionally serve as havens during periods of increased geopolitical tension. Futures on U.S. Treasurys
    TY00,
    +0.21%

    saw a modest rise of 0.2%, while the U.S. dollar
    DXY
    was little changed versus major rivals and gold futures
    GC00,
    +0.41%

    ticked up 0.4%.

    Escalating Middle East tensions won’t go unnoticed by traders, but probably doesn’t warrant a “solid derisking,” Weston said, particularly with investors facing a barrage of major market events in the week ahead.

    For U.S.-focused investors, the week ahead features a Federal Reserve policy meeting, earnings from tech industry heavyweights and a crucial December jobs report.

    The Middle East situation “won’t take us too far off the rates, growth track, but we have an eye on whether this escalates,” Weston said.

    —Associated Press contributed.



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