European Stocks Post Weekly Drop With Focus on US Trade Deals
The Stoxx Europe 600 Index was down 0.5% by the close as President Donald Trump said his administration will probably start notifying trading partners of the new US tariff on their exports effective Aug. 1.
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The energy world is changing fast, and for oil and energy companies, the message couldn't be clearer: low-carbon solutions aren't just a nice-to-have anymore — they're essential. With record-breaking heat, stricter regulations and growing pressure from customers, cutting carbon isn't just about doing the right thing — it's opening up real business opportunities. It's pushing companies to innovate, explore new markets, and rethink what it means to lead in this space. For oils-energy companies and investors, this shift isn't just about keeping up with regulations. It's about staying competitive, finding new paths to grow, and making sure their investments are built to last. In today's fast-changing energy world, integrated oil and gas companies are in a great position to lead the way. These big players handle everything — from finding and extracting oil and gas to refining it and getting it to customers, which gives them the know-how and resources to try new ideas and technologies. Companies like Exxon Mobil Corporation XOM, Shell plc SHEL, TotalEnergies SE TTE, and Chevron Corporation CVX aren't just sticking to traditional oil and gas anymore — they're upgrading their whole systems to include low-carbon solutions like carbon capture, hydrogen, and renewable energy. By combining what they've done for years with these new, cleaner options, they're finding smart ways to stay competitive and make real progress toward a greener future. Because they cover the entire process, they can move quickly, make smart investments, and lead the industry through one of its biggest transformations yet. Low-carbon solutions — from carbon capture to hydrogen and renewables — are vital for several reasons: Regulatory Pressure and Market Demand: Governments worldwide are tightening emissions standards and setting legally binding climate commitments. This means companies that can't show real progress on decarbonization risk losing their license to operate, facing higher costs, or missing lucrative contracts. Massive Market Opportunity: Hard-to-decarbonize sectors like industry, power, and transportation account for about 80% of global CO2 emissions. The market for emission-reduction technologies in these sectors could be worth up to $6 trillion by 2050. For oil and energy companies, this is a huge opportunity to capture new value pools and diversify revenue streams. Investor and Consumer Expectations: Investors are increasingly channeling capital toward businesses with strong sustainability credentials, while consumers are demanding cleaner products. Companies that lead in low-carbon innovation can enhance their brand, attract investment, and build long-term customer loyalty. Cost Savings and Efficiency: Advanced carbon management technologies and smart energy systems can help businesses slash energy waste, cut costs, and increase operational efficiency—all while reducing their environmental impact. Future-Proofing: As the energy transition accelerates, companies that invest early in low-carbon solutions will be better positioned to adapt to changing policies, technologies, and market dynamics. Let's explore how the largest energy companies — ExxonMobil, Shell, TotalEnergies, and Chevron — are evolving to lead in the low-carbon future: ExxonMobil, a Spring, TX-based integrated oil and gas company, is placing big bets on carbon capture and low-carbon hydrogen. In its first-quarter 2025 results, the Zacks Rank #3 (Hold) company reported earnings of $7.7 billion and highlighted ongoing transformation efforts to ensure resilience in uncertain markets. Notably, ExxonMobil has pledged up to $30 billion between 2025 and 2030 for lower-emission initiatives, with about 65% of this investment aimed at reducing emissions across the broader industry, not just its operations. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The Baytown low-carbon hydrogen project, poised to be one of the world's largest blue hydrogen facilities, serves as a key pillar of this strategy. Using CCS technology, Baytown will capture up to 10 million metric tons of CO2 annually, enabling both ExxonMobil and third-party emitters to cut emissions at scale. ExxonMobil's deep infrastructure and engineering expertise give it a strong advantage in commercializing these solutions efficiently. The company is also advancing biofuels and lithium extraction, aiming to support both the decarbonization of its operations and those of other industries. Furthermore, ExxonMobil is deploying advanced methane detection and reduction technologies, underlining its commitment to tackling all major greenhouse gases as part of its broader emissions-reduction strategy. Shell's first-quarter 2025 adjusted earnings were $5.6 billion, but the real story is its portfolio transformation. The company sold its Nigerian onshore operations for $2.4 billion, exiting a legacy region with significant operational risks. Simultaneously, Shell acquired Pavilion Energy, strengthening its LNG trading capabilities and positioning itself for long-term growth in cleaner fuels. The Zacks Rank #3 company is also ramping up investments in renewable power and hydrogen. While specific hydrogen projects weren't disclosed in the first quarter, the London-based integrated oil and gas company has a clear capital expenditure (CapEx) outlook of $20-$22 billion, much of it directed at transition technologies, including renewables, energy storage, and distributed energy platforms. Shell is accelerating its energy transition strategy by investing $10-$15 billion in low-carbon solutions between 2023 and 2025, with a strong focus on hydrogen, renewables, and carbon capture. A key milestone in Shell's sustainability initiatives is the construction of Holland Hydrogen I in Rotterdam, poised to become Europe's largest renewable hydrogen plant when it begins operations in 2025. This facility will use offshore wind power to produce green hydrogen, which will help decarbonize Shell's refineries and support clean transportation. Beyond hydrogen, Shell is rapidly expanding its EV charging infrastructure and renewable energy generation, particularly in wind and solar. The company's carbon capture initiatives, such as the Polaris CCS project in Canada, are designed to capture significant volumes of CO2 and support Shell's goal of achieving net-zero emissions by 2050. Shell's progress is evident in its achievement of over 60% of its targeted reduction in operational emissions by 2030, even as it adapts its long-term plans to the evolving energy landscape. Among the most aggressive movers, TotalEnergies, a France-based integrated oil and gas company, is rapidly expanding its renewable electricity and green hydrogen assets. In first-quarter 2025, the Zacks Rank #3 company posted strong results driven by an 18% year-over-year rise in electricity production, largely powered by renewables. TotalEnergies also acquired VSB Group, a German renewables developer, further cementing its role in Europe's green energy ecosystem. A landmark initiative is its partnership with Air Liquide to build two green hydrogen facilities in the Netherlands, targeting 45,000 tons of annual production. These projects aim to reduce up to 450,000 tons of CO2 emissions per year, primarily by decarbonizing TotalEnergies' refining operations, while supporting broader EU climate targets. TotalEnergies' integrated approach combines renewable generation, storage, and distribution, positioning the company as a key player in Europe's evolving green energy ecosystem and enhancing its resilience in a rapidly changing market. Chevron, a Houston, TX-based Integrated Oil and Gas company, is taking a more measured yet innovative path. The first-quarter 2025 earnings were $3.5 billion, with highlights including the start-up of the Ballymore field in the Gulf of America. On the decarbonization front, the Zacks Rank #3 company launched a 5-megawatt solar-to-hydrogen project in California's Central Valley, its first such initiative. The facility uses solar energy to produce hydrogen for industrial and transport applications, showcasing Chevron's intent to blend renewables with traditional energy. In addition, Chevron is supporting more than 140 clean-tech startups through its Chevron Technology Ventures, investing in lithium production, recently acquired lithium-rich acreage as part of a strategic expansion and intelligent fracking technologies to boost efficiency while reducing emissions. The shift to low-carbon energy is no longer a distant ideal — it's a critical business transformation already underway. Leading oil and energy companies are evolving from fossil fuel producers into diversified energy innovators. For investors, this means opportunities to back companies with bold decarbonization strategies that promise growth, resilience, and competitive advantage. In the race to net zero, those who invest early and think beyond traditional oil and gas will define the energy leaders of tomorrow — and reap the rewards today. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chevron Corporation (CVX) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
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No tax on tips and overtime: Here's how your taxes may shrink
In a sweeping shift poised to reshape the tax landscape for millions of American workers, Republicans on Thursday passed the massive tax bill, fulfilling one of President Donald Trump's major campaign promises to eliminate federal income taxes on some tips and overtime pay. The bill now heads to Trump, for him to sign into law on July 4. Trump first pledged to end taxes on tips during a campaign rally in Las Vegas in 2024, aiming to win support of voters in the swing state. The megabill, which cleared the Senate and House this week, marks one of the most significant federal tax policy changes in recent years. Learn more: Trump's tax law: What the megabill means for you and your money Under the new law, workers who rely on tips or work extra hours will be able to keep more of their earnings — a move the White House claims will boost pay for working-class Americans. But not everyone agrees. A study by the Tax Policy Center found that while some taxpayers may see an increase of a few hundred dollars in after-tax income, many low-income earners could see little to no benefit at all. Here's how the new law works — and what it could mean for your taxes. Type of tax break Tax deduction Value of tax break Up to $25,000 Income limits Tax break decreases by $100 for every $1,000 of modified adjusted gross income above:$300,000 (married filing jointly); $150,000 (all other filers) Type of tax break Tax deduction Value of tax break $25,000 (married filing jointly); $12,500 (all other filers) Income limits Tax break decreases by $100 for every $1,000 of modified adjusted gross income above:$300,000 (married filing jointly); $150,000 (all other filers) Workers must pay federal income tax and payroll taxes on tip income, just as they do on regular wages. Employees are required to report monthly tips exceeding $20 to their employers, who must then withhold income and FICA taxes and report the amount to the IRS. The new tax law creates a deduction for qualified tip income, eliminating federal income taxes on up to $25,000 in tips for workers for tax years 2025 through 2028. The tax break starts to phase out for taxpayers with modified adjusted gross income (MAGI) of $150,000, or $300,000 if married filing jointly. (The value of the deduction will drop by $100 for every $1,000 of income above those amounts.) 'An estimated four million individuals receive tip income. So those people could see a significant tax benefit,' says Mark Luscombe, principal tax analyst with Wolters Kluwer Tax & Accounting. 'The deductions for tips are available to non-itemizers, so they can be claimed even if the taxpayer claims the standard deduction.' Workers will still need to report tip income and pay payroll taxes. While federal income tax will be withheld from paychecks, those amounts will be refunded when filing their income tax return. The tax break won't apply only to employees. Some independent contractors and business owners could also qualify, provided their business gross receipts exceed business deductions, losses and costs, including the cost of goods sold. Get started: Match with an advisor who can help you achieve your financial goals While this provision will eliminate taxes on tip income for millions of Americans, only a fraction of taxpayers may see a meaningful benefit. A study by the nonpartisan Tax Policy Center found that households earning $33,000 or less wouldn't benefit much, as they typically owe little to no federal income tax. Fully 40 percent of U.S. households that report tip income would not see any tax break from the proposal, according to the Tax Policy Center report. That means 60 percent of households that report having tip income would benefit (that translates to about 2 percent of all U.S. households enjoying this tax break), and their tax bills would drop by an average of $1,800 a year, according to the report. An average of $1,800 a year is not nothing. But that reward wouldn't go to the lowest-earning households. Of those households making less than $33,000 a year, just 1.4 percent of households would benefit, and for those households, their after-tax income would rise by $450 a year on average. Learn more: New 'bonus' tax deduction up to $6,000 could be on the way for those age 65 or older Employees must receive overtime pay — at least time and a half — for any hours worked beyond 40 in a workweek. Under the new law, employees who earn overtime may get a break on their federal taxes. 'There has been a trend toward less use of overtime pay; however, under the Biden administration, the salary threshold for employees eligible for overtime pay was significantly raised, currently at $58,656 and adjusted for inflation every three years,' Luscombe says. The overtime tax break will function similarly to the tip income deduction. Overtime wages will still be subject to withholding, but workers could deduct federal income taxes paid on those wages when filing their returns, even if they don't itemize. The deduction will apply to tax years 2025 through 2028. The White House estimates that the average overtime worker will receive a tax cut of between $1,400 and $1,750 annually. But experts argue that the tax benefits won't benefit those who earn lower levels of income. While some experts say workers who earn overtime and tip income will pay less taxes under the new law, others warn the measure will increase the federal deficit and result in a significant loss of revenue. The Joint Committee on Taxation estimated that the tip provision would reduce federal revenues by $40 billion from fiscal years 2025 to 2034, with most of the impact concentrated between 2026 to 2029, when the deduction would be in effect. The Congressional Budget Office estimated exempting overtime pay would cost $124 billion through 2028. Some analysts also warn that eliminating taxes on overtime pay could disrupt the labor market. The Tax Foundation, a nonprofit tax policy group, said removing income taxes on overtime could 'distort' the labor market by encouraging more workers to take overtime shifts, potentially making hourly roles more attractive than salaried positions that are exempt from overtime rules. 'Although the bill tries to restrict businesses not currently relying on tip income and overtime pay from seeking to take advantage of these proposed changes, it is still possible that there could be shifts toward tip income and more overtime pay to try to take advantage of the deductions,' Luscombe says. Learn more: These 9 states have no income tax — that doesn't always mean you'll save money Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
