Aurelia Butler

PARAISO, Mexico (Reuters) -Mexican President Andres Manuel Lopez Obrador formally opened a major new oil refinery on Friday, a signature project for the leftist leader who argues it will help the country cut a longstanding dependence on foreign gasoline and diesel supplies.The Olmeca refinery owned and operated by state-run oil company Pemex is billions of dollars over budget and still under construction, but that did not stop Lopez Obrador from headlining a splashy inauguration ceremony at the facility built just off the Gulf coast port of Dos Bocas in his home state of Tabasco.In a speech, Lopez Obrador dismissed critics who argue that fossil fuels should no longer be part of Mexico’s energy future, while also criticizing past governments for failing to build a new refinery in nearly four decades.”During all this time, they bet on selling crude oil and then buying gasoline, diesel and other fuels in foreign lands,” said Lopez Obrador. But officials have said the Olmeca refinery likely will not be ready to start producing motor fuels until 2023, as months of testing are necessary once construction is complete. Lopez Obrador himself recently conceded the facility will end up costing between $11 billion-12 billion, not the roughly $8 billion he originally set as its maximum cost.In April, sources close to the project told Reuters it will cost at least $14 billion while other reports have put the final price tag several billion dollars higher. Two people familiar with the matter recently told Reuters the new refinery will only be running near capacity in 2025.The president, a leftist resource nationalist, argues that the refinery can help wean Mexico off of imported motor fuels, almost all of which is supplied by U.S. refiners, which he says undermines the country’s sovereignty. He also believes the refinery can better protect Mexican motorists’ wallets from the volatility of the international oil market.The refinery, with a top crude processing capacity of 340,000 barrels per day, will be Pemex’s largest once it comes online.In separate remarks prior to the president’s speech, Pemex Chief Executive Octavio Romero said the Salina Cruz refinery in Oaxaca, currently Pemex’s biggest, will also be upgraded to include a major new coking plant, which is needed to more efficiently process heavy crude into higher-value fuels.Currently, only three of Pemex’s fully-operational domestic refineries feature coking plants.Romero said construction company ICA Fluor (NYSE:FLR) has been awarded a turnkey contract for the Salina Cruz coking plant, which he said will come online in 12 months.The Pemex boss did not detail the additional cost needed for the project, only that $1.4 billion had already been spent before it was suspended for six years. More

Collins will have her first chance to weigh in on monetary policy in just over three weeks, on July 26-27 when she’ll join the Fed’s 17 other policymakers to decide interest rates. They are widely expected to deliver another 75-basis-point rate hike, bringing the Fed’s policy rate to a range of 2.25%-2.5% on the way to what they have signaled will likely be around 3.4% by year’s end — up from zero at the start of the year.Fed Chair Jerome Powell says the Fed’s fight against inflation — running at more than three times the Fed’s 2% target — is “unconditional.” Though it ideally can be won without undermining the current strong labor market, he said earlier this week, the process “is highly likely to involve some pain.” Friday brought fresh signs of that coming pain, with an index of U.S. factory activity slowing more than expected and an estimate of U.S. economic growth published by the Atlanta Fed https://www.atlantafed.org/cqer/research/gdpnow turned negative for the most recent quarter. Still most economists believe U.S. employers continued to add jobs last month, albeit at a slower pace than in recent months, and that the unemployment rate likely held steady at 3.6%, near historic lows.Collins, an economist and public policy professor, most recently served as provost at the University of Michigan. She succeeds Eric Rosengren, who retired last fall amid an ethics probe into personal trading by Fed officials during the pandemic. In addition to helping set U.S. interest rates, Collins’ job entails overseeing the Boston Fed’s banking supervision, community outreach, and its lead role at the central bank in research on technology that could be used if the Fed adopts a central bank digital currency. More

NEW YORK (Reuters) -The number of people traveling by car and airplane for the Fourth of July holiday is expected to climb near pre-pandemic levels, a test for U.S. airlines that have struggled with inadequate staffing and flight cancellations this summer.The easing of COVID-19 restrictions and bottled-up travel demand are translating into the strongest summer since the pandemic for U.S. carriers. But so far the season has been marred by chaos, with more than 20,000 flight cancellations as U.S. airlines struggle with pilot staffing shortages that have persisted since 2020.AAA, an auto membership group, expects 47.9 million people will travel 50 miles or more from home over the holiday weekend spanning June 30 to July 4. That is up 3.7% over 2021 and close to pre-pandemic levels.The bulk of U.S. travelers will be driving, but 3.55 million are expected to fly, AAA said.Airlines so far delayed 2,706 and canceled 309 flights to, from and within the U.S., according to tracking site FlightAware”I had a flight issue and now I’m trying to re-book, but the prices are ridiculously super high,” said Newark Liberty International Airport passenger Sintra Sackroolal, adding that she may drive to Fort Lauderdale, Florida after she was quoted $2,000 for a one-way ticket.The weekend had a busy start. More than 2.4 million travelers on Thursday made their way through the U.S. Transportation Security Agency checkpoints, surpassing 2019 levels and 110% higher when compared to last year’s TSA data.Airlines have taken some measures to improve travel conditions this weekend. Delta Air Lines Inc (NYSE:DAL) issued a travel waiver to allow passengers to re-book their flights scheduled this weekend free of charge. Delta Air Lines passenger Lee Harris said his flight to Atlanta was canceled on Thursday night as he was boarding the plane.”Once they canceled my flight, they don’t offer me a hotel, they don’t offer me any assistance. Nothing. They just left me,” he said, sitting on the black bench he slept on the previous night.Staffing woes have made it tougher for the airline industry to ramp up its capacity. U.S. airlines have slashed 15% of their summer schedules, according to Airlines for America, a trade group. Some travelers are choosing not to take any risks this weekend. “In past years we have flown to Mount Rushmore for the Fourth of July but this year we’re just going to watch our hometown parade and fireworks and be thankful that we’re not stuck in an airport,” said Missy Buchanan, 70, a resident of Rockwell, Texas. More

Chile is the world’s top copper producer and is home to global copper giants like Codelco, BHP, Anglo American (LON:AAL) Glencore (OTC:GLNCY) and Antofagasta (LON:ANTO).”This means an increase in revenue from royalties, an increase in state participation in mining income,” Marcel said. “But also ensuring the mining sector has enough income to encourage investment.”A press release from the treasury department says the plan has two components. One is an ad valorem tax between 1% and 2% for companies that produce between 50,000 and 200,000 tonnes of fine copper a year and a rate between 1% and 4% for those that produce more than 200,000.The other component is a rate between 2% and 32% on profits for copper prices between $2 and $5. Both components vary based on the price of copper.Smaller copper producers will continue with the current system, Marcel added.The bill aims to raise 4.1% of GDP over four years, with 0.7% going to a new guaranteed minimum pension fund.The proposal also raises taxes on high-income earners, capital gains and introduces a new wealth tax for citizens with more than $5 million in assets.Marcel noted Chile, with a tax collection rate of 20.7% of GDP, is below the OECD median of 34.7%.”Historically, few countries have reached economic prosperity with a low tax load,” Marcel said, adding that 97 percent of taxpayers won’t be affected by the proposal.The bill also tries to reduce tax exemption and evasion while giving tax breaks for rent and care for children under 2 and the severely dependent. More