Google inks $3bn hydropower deal as industry intensifies clean energy hunt
The deal between Google and Brookfield Asset Management includes initial 20-year power purchase agreements, totalling $3bn (R53.43bn), for electricity generated from two hydropower facilities in Pennsylvania.
The tech giant will also invest $25bn (R445.25bn) in data centres across Pennsylvania and neighbouring states over the next two years, Semafor reported on Tuesday.
The technology industry is intensifying the hunt for massive amounts of clean electricity to power data centres needed for artificial intelligence and cloud computing, which has driven US power consumption to record highs after nearly two decades of stagnation.
Ruth Porat, president and chief investment officer at Google parent company Alphabet, is expected to discuss the news at an AI summit in Pittsburgh. US President Donald Trump is scheduled to attend the event, where $70bn (R1.25-trillion) in AI and energy investments are expected to be announced.
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The South African
an hour ago
- The South African
How South Africa's fruit industry plans to deal with US trade tariffs
Earlier this month The South African reported on how American president Donald Trump, who had previously backed South African farmers, is now imposing tariffs that will affect their livelihoods. A 30% tariff on key exports, including citrus, wine, sugar cane, and beef, will take effect on 1 August. This will all but end the duty-free access South Africa enjoyed under the Africa Growth and Opportunities Act (AGOA). While citrus exports may avoid major disruption this season, sectors like table grapes and stonefruit are facing a more immediate challenge. With their peak export seasons fast approaching, producers need to act swiftly to mitigate potential losses. South African fruit growers are hoping that late US talks might ease the trade tensions. In the meantime, exporters are being urged to diversify. 'We have to do everything we can to retain our position in the UK and Europe,' said Alwyn Dippenaar, Chairman of the South African Table Grape Industry. According to Fruitnet , markets in Asia and the Middle East are now also high on the radar. Despite recent difficulties in China for South African grape growers, renewed trade cooperation could offer a lifeline. China's move to expand free trade to 53 African countries, including South Africa, may provide much-needed relief and improved competitiveness for local fruit exporters. India, another key market, is also in focus. As such, a senior Indian delegation is expected to visit South Africa soon to fast-track a potential trade agreement. High import tariffs in India have so far hindered some product categories. In response, the local industry is rolling out awareness campaigns for South African apples, pears, citrus, and avocados in the sub-continent. A new campaign led by South African citrus growers meanwhile aims to reposition grapefruit as a vibrant summer fruit in Europe. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
The Citizen
2 days ago
- The Citizen
Weekly economic wrap: US tariffs, mining production and retail sales
The US tariffs have turned the global economy into a roller-coaster as it affects every part of economic growth and decline. In what was supposed to be a quiet week on the economic front, US tariffs kept people watching the economic news, while there was local news on mining production and retail sales. Lisette IJssel de Schepper, chief economist at the Bureau for Economic Research (BER), says the big global data prints of the week came on Tuesday, with better-than-expected Chinese GDP growth for the second quarter and US core inflation coming in lower than expected, but still (finally) reflecting some signs of tariffs being passed on to consumers. In South Africa, she says, the uptick in mining production and retail sales was positive for gross domestic product (GDP) for the second quarter. 'There was plenty of political news to digest. Globally, US President Donald Trump dished out more tariffs to be implemented on 1 August, while the push to essentially oust US Federal Reserve (Fed) chair Jerome Powell continued. 'Locally, President Cyril Ramaphosa placed police minister Senzo Mchunu on special leave, something which has never happened before, pending the outcome of another commission of inquiry.' ALSO READ: Devastating impact of US tariffs on SA automotive sector even before implementation Big story of the week: 30% US tariff on European Union She points out that the big story over the weekend was that the US plans to impose a 30% tariff on the European Union (EU), more than the 20% Liberation Day tariff announced in early April. Key training partners Canada (35%) and Mexico (30%) face similar hurdles, although some exceptions for trade covered by the United States-Mexico-Canada Agreement (USMCA) remain in effect. 'All countries have, so far, held off on immediate retaliation, but the EU finalised a list of countermeasures to strategically target US exports to the EU. It has held off on retaliating so that negotiations can continue, but plans to target €72 billion of imports, ranging from industrial goods (Boeing, cars and machinery) to agri-food products (including bourbon). 'Some EU countries pushed for the option to use anti-coercion instruments, which give broader powers to, for example, introduce taxes on US tech companies or restrict access to parts of the market.' ALSO READ: ArcelorMittal warns it might close without urgent solution to challenges Headlines in global markets written in halls of power, not just Wall Street Bianca Botes, director at Citadel Global, says this week in global markets the headlines were written not just on Wall Street, but in the halls of power from Washington to Beijing. 'Trade, technology and teetering central bank policies collided, reordering how investors see risk, reward and the future path of markets.' She says Trump's surprise announcement of potential sweeping tariffs on its key trading partners, South Korea, Japan, Brazil and Canada, sent waves through the commodity world and reignited concerns about global supply chains. 'Notably, a proposed hefty 50% tariff on copper imports, potentially starting 1 August, catapulted the red metal's futures prices. While previous tariff announcements sometimes triggered swift, knee-jerk selloffs, market reaction this time was more nuanced. 'Why? Investors are, by now, warier but also somewhat desensitised to the tug-of-war on trade. Rather than a wholesale equity retreat, money, instead, flowed into safe havens. Silver surged nearly 4% and select commodity classes outperformed as investors hedged their exposure. 'This sector-by-sector action underscores a key theme for 2025: the world is learning to trade around trade policy, analysing which assets get hit hardest and which might benefit.' ALSO READ: Government must intervene with US tariffs, act stronger with police corruption Oil and gold also affected by US tariffs Botes points out that oil steadied on supply worries, while gold dipped on strong data. 'Brent Crude hovered near $69.60/barrel, holding on to a 1.5% gain, after geopolitical tensions and tighter supply boosted prices. 'Meanwhile, gold hovered just below $3 340/ounce, heading for its first weekly decline in three weeks. The retreat follows stronger US data, with retail sales rebounding and jobless claims hitting a three-month low, thereby reducing the urgency for Fed rate cuts. 'Despite the policy tug-of-war within the Fed, gold remains underpinned by geopolitical risks and tariff uncertainty. With Trump's notification of tariff rates to over 150 trade partners, safe haven appeal remains intact.' According to Busisiwe Nkonki and Isaac Matshego, economists at the Nedbank Group Economic Unit, the rand is trading around R17.70/$ this afternoon, pulling back from R17.92 last Friday despite worries about the 30% import tariff on exports to the US. 'The rand benefited from positive sentiment that boosted emerging market currencies.' In commodity markets, the Brent Crude Oil price softened on concerns about the effects of the Trump tariffs on global demand, while gold continued to move around $3 340 and platinum jumped to the highest level since August 2014 as supply concerns worsened. ALSO READ: Does stronger economic activity indicate improved GDP? Will mining production perform better in the second quarter? Mining production increased by an above-consensus 0.2% in May, marking the first annual expansion since the start of this year, after a sharp 7.7% contraction in April. Iron ore was the largest positive contributor, while declines in manganese ore and coal production were the biggest drag. Nomvelo Moima, an economist at the BER, says that barring a sharp reversal in June, it appears the mining sector is likely to contribute positively to GDP in the second quarter. Mamello Matikinca-Ngwenya, Siphamandla Mkhwanazi, Thanda Sithole and Koketso Mano, economists at FNB, say the increase in seasonally adjusted mining output suggests a continued improvement in output in the second quarter, with production up 2.6% in the three months until May. 'Should this trend continue, mining production will contribute positively to GDP growth.' Nkonki and Matshego say the outlook remains murky. 'While most mining products will likely be exempted from the 30% US tariff on South African imports, the ongoing tariff war will hurt global growth in the quarters ahead, weighing on export demand and commodity prices.' ALSO READ: Retail sales: South Africans spent R19.6 billion on clothes and furniture in May Retail sales and motor trade faring better, but wholesale drags Statistics SA released a batch of domestic trade data for May, affirming that consumer spending remained solid during the second quarter. Real retail trade sales increased by 4.2%, while motor trade sales increased by 4.7%. However, the wholesale sector did not fare too well, as annual wholesale trade sales contracted for a fifth straight month in May by 4.3%. Matikinca-Ngwenya, Mkhwanazi, Sithole and Mano say retail activity over the past three months reflected no growth compared to the preceding three-month period, suggesting that household spending is losing momentum. 'However, any build-up in momentum in June will support GDP growth.' Nkonki and Isaac Matshego point out that only general dealers and hardware stores saw sales increase over the month, while sales at most other retailers, including online stores, declined in May. 'Despite the mixed results, sales remained well above last year's levels across the board. 'Retailers should benefit from the ongoing recovery in consumer demand as household incomes strengthen, inflation remains relatively subdued, and the recent interest rate cuts reduce borrowing costs and revive credit demand.'
TimesLIVE
2 days ago
- TimesLIVE
Economic uncertainty cannot be new norm, says Canada at G20
Major economies cannot allow uncertainty to become the new norm even though they face a novel world of growing trade restrictions and tariffs, Canada's finance minister said on Thursday. G20 finance ministers and central bankers meeting near Durban face a challenge to produce a final communique at a meeting overshadowed by Donald Trump's tariffs and in the absence of US Treasury secretary Scott Bessent. Canada's Francois-Philippe Champagne told Reuters he was cautiously optimistic a final communique would be agreed, but that the G20 of large developed and developing countries had in any case to send a clear message. "We cannot allow uncertainty to become the new certainty. Uncertainty is the word that came probably the most in the discussions today," he said at the end of the first day of the July 17-18 G20 meeting.
