Latest news with #Cleveland-Cliffs
The Hill
4 days ago
- Business
- The Hill
Ethics panel: Pennsylvania Republican violated code of conduct with spouse's stock trades
The House Ethics Committee 'found substantial evidence' that Rep. Mike Kelly (R-Pa.) violated the code of conduct for the lower chamber when his wife profited off stock trades for a company the congressman was focusing on in Washington. The report — which spans 28 pages and has three packets of supporting documents — cleared Kelly of intentionally causing his wife to trade based on insider information and having a conflict of interest, determining there wasn't evidence to prove those two wrongdoings. But the panel found that Kelly, a member of the powerful Ways and Means Committee, breached the House's code of conduct 'by failing to meet his duty of candor.' The committee ordered he and his wife to divest their investments in Cleveland-Cliffs, the steel manufacturer at the center of the report. 'Representative Kelly's conduct with respect to Cleveland-Cliffs and his wife's stock purchase raised significant concerns for the Committee, even if it did not rise to the level of insider trading or clearly violate conflict of interest rules,' the committee wrote, later adding Kelly 'has not demonstrated sufficient appreciation for the harm to the institution caused by the appearance of impropriety.' The panel's investigation focuses on a series of trades of Cleveland-Cliffs stock that Kelly's wife, Victoria, made in the last five years. Cleveland-Cliffs in 2020 acquired AK Steel, which is the sole producer of grain oriented electrical steel (GOES) in the U.S. GOES is produced in Butler, Pa., a town in Kelly's district. In early 2020, Cleveland-Cliffs had said it may have to close the Butler location and lay off employees if the Trump administration did not implement Section 232 tariffs, which would protect the production of GOES in the U.S. Kelly took part in actions in Washington to address the matter. On April 28 of that year, the Commerce Department told Cleveland-Cliffs — and Kelly learned — it would begin a Section 232 investigation for some GOES-based steel products, according to the report. The next day, the panel learned, Victoria Kelly bought 5,000 shares of Cleveland-Cliffs stock for $23,075. The investigation was announced on May 4. The committee said it was unable to determine if Victoria Kelly was made aware of the development before making the trade. But, the congressman was working from home at the time after testing positive for COVID-19 and told the committee 'Mrs. Kelly would've heard any of my conversations,' adding that she 'sits around for most of the time I'm on the phone,' according to the report. The panel said it could definitely determine if she heard the conversation. The Stop Trading on Congressional Knowledge (STOCK) Act, enacted in 2012, prohibits members and staff from engaging in insider trading using information learned in official capacities. While Kelly was interviewed as part of the investigation, his wife 'refused to participate in a voluntary interview or to respond to written questions from the Committee, citing her prior cooperation with document requests as well as health concerns,' according to the report. The Congressman also said his wife did not want to speak to the committee because she felt the process was 'invasive.' 'The Committee did not receive full cooperation from Mrs. Kelly and was therefore unable to determine whether her stock purchase was improper,' the report reads. The panel did, however, find that the investment in Cleveland-Cliffs 'was an outlier' in her portfolio, noting that unlike other trades that were made at her firm's discretion, that transaction 'had to be instructed and confirmed directly by Mrs. Kelly in order for the transaction to be completed because it was not on PNC's investment platform.' The move marked her first purchase of individual stock in a year, according to the report, and was different from the mainly funds and bonds on her account. Kelly said he believed his wife made the transaction because 'she thought the stock was so low priced, it'd be foolish not to… I know that she thought she made a hell of a buy.' In August 2020, however, Kelly's office told a local news outlet inquiring about the purchase that it was made 'to show her support for the workers and management of this 100-year old bedrock of their hometown, where they both are life-long residents.' The second transaction examined by the committee was made in January 2021, shortly after Cleveland-Cliffs in December 2020 acquired a steel manufacturing corporation that caused its stock to skyrocket in value. Victoria Kelly that month sold all her shares in the company for $87,551.06, turning a $64,476.06 profit. 'None of the witnesses interviewed by OCC or the Committee, including Representative Kelly, provided an explanation for why Mrs. Kelly chose to sell her stock at that time. Representative Kelly told the Committee he did not speak with Mrs. Kelly about the sale at any point,' the report reads. Then in June 2024, Kelly disclosed that his wife purchased between $50,000 and $100,000 in shares of Cleveland-Cliffs back in March, as the congressman's office was involved in a matter involving the company and the Department of Energy. In March, the Energy Department made a decision on the matter that protected the facility in Butler. As a result of the findings, the panel recommended that Kelly and his wife 'divest all of Cleveland-Cliffs stock should he continue to take official actions relating to the company.' 'It is rare for the Committee to recommend divestment of stocks where there is a potential appearance of a conflict of interest. As Representative Kelly himself noted, however, he is an 'insider' when it comes to Cleveland-Cliffs, by virtue of his position as the representative for his district,' the report reads. In a statement responding to the Ethics report, Kelly said: 'This investigation has unnecessarily lasted for nearly five years.' 'In the years since this investigation began, the Cleveland Cliffs Butler Works plant faced an uncertain future due to the Biden administration's reckless energy policies. Throughout this process, I have fought for the 1,400 workers at the plant, I've spoken with these workers, and they appreciate the hard work we have done to fight for those jobs and for Butler. My family and I look forward to putting this distraction behind us,' he added.
Politico
5 days ago
- Business
- Politico
Pennsylvania Republican called out by Ethics panel for stock investments
The panel urged Kelly and his wife to divest their holdings before he takes any more official actions related to Cleveland-Cliffs. Lawmakers are barred from insider trading under the STOCK Act, which Congress passed in 2012 in direct response to concerns about lawmakers and government officials using their proprietary information to advance their own personal gain. Under this law, officials also cannot give such information to others for the purposes of stock trading. Still, the committee was concerned that Kelly's wife bought more stock during the investigation, and Kelly did not disclose the purchase in a timely manner — nor did he answer questions about it. In a statement, Kelly said, 'My family and I look forward to putting this distraction behind us.' He added: 'This investigation has unnecessarily lasted for nearly five years. In the years since this investigation began, the Cleveland Cliffs Butler Works plant faced an uncertain future due to the Biden administration's reckless energy policies. Throughout this process, I have fought for the 1,400 workers at the plant, I've spoken with these workers, and they appreciate the hard work we have done to fight for those jobs and for Butler.' Kelly is a member of the powerful Ways and Means Committee, which oversees tax policy, and sits on the GOP Steering Committee, which makes recommendations to the full Conference on House leadership assignments. The Ethics Committee published a second report Friday regarding Rep. Alexandria Ocasio-Cortez (D-N.Y.), whose attendance to the 2021 Met Gala caused much consternation. The panel found that despite her attempts to comply with House rules, Ocasio-Cortez's conduct, including her partner's attendance at the event at no cost, was not entirely appropriate. Once she repaid the expenses, the Ethics Committee said, it would consider the matter closed.
Global News
6 days ago
- Business
- Global News
U.S. steelmakers say Trump's tariffs ‘working,' want Canada to follow suit
Some top American steel producers are cheering on U.S. President Donald Trump's tariffs on foreign steel while raising prices on their own products, with one steelmaker urging Canada to copy Trump's protectionist trade policies. Both Cleveland-Cliffs and Steel Dynamics said in their latest quarterly earnings reports this week that they are charging buyers about 14 per cent more than they did in the previous quarter, while Acerinox said it is considering doing the same as soon as this fall. Economists say such price increases are a natural result of tariffs, and are warning Canada to avoid the Trump administration's 'sledgehammer' approach that ends up squeezing buyers. 'A scalpel approach is much more necessary here, because it's so complex,' said Harish Krishnan, a professor at the University of British Columbia's Sauder School of Business who focuses on supply chain management. Story continues below advertisement The U.S. approach, he added, 'is going to be negative for costs in the short and long term.' 4:26 Federal gov't response to latest U.S. Tariffs Steel Dynamics reported on Tuesday its average steel price in the second quarter of this year was US$1,134 per tonne, up from US$998 in the first quarter. Cleveland-Cliffs said it was selling steel during the same quarter at US$1,015 a tonne on average, up from US$980 in the first quarter. Acerinox, the largest producer of stainless steel in the U.S., said in a post-earnings call Thursday it was also looking to increase its prices later this year, but CEO Bernardo Velazquez acknowledged doing so 'is not easy under the current circumstances.' The CEO of Daimler Truck North America, which buys steel for the school buses and semi-trucks it manufactures, told the New York Times this week that it would be difficult to pass on the higher steel costs to its customers, particularly at a time of lower demand for its products. Story continues below advertisement The company said last week it was reducing its workforce by 2,000 employees. 'Whenever you introduce a tariff, it has two effects,' said Werner Antweiller, an economics professor and chair in international trade policy at the University of British Columbia. 'It basically raises the prices in the market overall because it curtails output, and so consumers are paying a higher price overall, and then the domestic producers are pulling even to the price of the foreign producers.' Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy Antweiller said those higher costs will have downstream impacts not just on buyers like Daimler Truck, but also the North American auto industry, which relies on steel and aluminum — including American automakers that Trump has said he wants to protect. Despite those impacts, Krishnan said, 'As profit maximizers, it makes total sense for the sellers to raise their prices.' 8:50 Automotive parts manufacturers association doesn't want countertariffs Both Cleveland-Cliffs and Steel Dynamics said they expect prices to remain stable in upcoming quarters — meaning they will remain at higher levels. Story continues below advertisement In a post-earnings call Tuesday, Cleveland-Cliffs CEO Lourenco Goncalves described the 'strong improvements in pricing' and said Trump's steel tariffs, which went up to 50 per cent in June, 'have played a significant role in supporting the domestic steel industry.' The company told investors that imported steel has dropped from 25 per cent of the U.S. market share in January to 20 per cent in April and May, after Trump first re-imposed the tariffs at a 25 per cent rate. Executives at Steel Dynamics were more muted. While CEO Mark Millett said higher prices had boosted profitability for the company, 'the uncertainty regarding trade policy continues to cause hesitancy in customer order patterns across our businesses.' Canada needs 'significant' steel tariffs, CEO says The uncertainty has roiled Canada's own steel industry, which, like the U.S., has historically contended with imports and has called on the federal government to stop foreign dumping of steel due to Trump's tariffs. Story continues below advertisement Prime Minister Mark Carney last week said Ottawa will change its steel tariff-rate quotas from 100 per cent to just 50 per cent of 2024 volumes for non-free trade agreement countries. Any imports that fall above that rate will face a 50 per cent tariff, which will also be applied to imports from free trade agreement partners above 100 per cent of 2024 volumes. Additional duties will also be imposed on 25 per cent of steel imports from all non-U.S. countries that contain steel melted and poured in China before the end of July, Carney added. Goncalves on Tuesday claimed the new measures will only affect 17 per cent of the steel imported to Canada, and urged Carney to expand its tariffs to all foreign trade partners in line with the U.S. He said countries with free trade agreements 'continue to use Canada as their outlet for overproduction.' Cleveland-Cliffs owns the Canadian steel company Stelco after buying it from U.S. Steel last year. 'If Prime Minister Carney and his cabinet really want to have a steel industry in Canada, they should put in place significant trade protections,' Goncalves said during Tuesday's call. 'Then they will have a strong domestic steel industry in Canada, able to support a vibrant and domestic Canadian market. 'We are doing just that here in the United States, and it's working.' Story continues below advertisement 1:30 Carney announces steel tariff countermeasures in support of workers Antweiller warned Ottawa against following that advice. 'It would actually raise prices here in Canada too, and that would again hurt the industry downstream,' he said. 'And that is even more important because there are so many more jobs in the auto industry than there are in the steel industry.' The Canadian Steel Producers Association, whose membership includes Stelco, declined to comment on Goncalves' comments when asked by Global News. The industry group last week applauded the federal government's updated measures to protect Canada's steel sector, after criticizing the initial plan announced last month that included lower tariff rate quotas. Yet companies are seeing damage to their own bottom lines. Algoma Steel confirmed Thursday it was in talks with the federal government about potential liquidity relief measures, including an application to the federal Large Enterprise Tariff Loan program for $500 million. Story continues below advertisement Industry Minister Melanie Joly told reporters early this month the government was talking to Rio Tinto about potential liquidity relief as well. Both Goncalves and Millett, the Steel Dynamics CEO, said Tuesday they expect the steel and aluminum tariffs to stay in place even under negotiated trade deals that see other country or sector-specific tariffs removed. 'So far, there is no indication that the Section 232 tariffs will be used as a bargaining chip by the Trump administration as leverage in trade deals with other countries,' Goncalves said. Federal negotiators have said the steel and aluminum tariffs have been a focus of talks with the U.S. toward a new trade and security deal. Trump has threatened Canada with new tariffs starting Aug. 1 unless a deal is set. Economists are hopeful that the White House begins to see the damage that will be created if the tariffs remain in place. 'Our integrated market is worth so much to both sides, and moving away from this is going to hurt the Americans as much as us,' Antweiller said. 'I think that realization ought to take hold in the United States.'
USA Today
22-07-2025
- Business
- USA Today
US stock futures little changed as investors await more earnings reports
U.S. stock futures are little changed as investors await more earnings reports. The broad S&P 500 and tech-heavy Nasdaq scored record highs to start the week amid solid earnings reports from Domino's Pizza, Cleveland-Cliffs and Verizon. Of the more than 60 S&P 500 companies that have reported, more than 85% of those topping analysts' estimates, according to FactSet data. Analysts on average expected S&P 500 companies to report a 6.7% increase in earnings for the second quarter, with big technology companies driving much of that gain, according to LSEG I/B/E/S. Philip Morris International, Coca-Cola and Lockheed Martin are among those slated to report before the market opens. However, the main events are midweek when Tesla and Alphabet report results. Investors will be keen to dissect the earnings reports for signs of how President Donald Trump's tariffs have hit the economy and corporate spending. At 6 a.m. ET, futures linked to the blue-chip Dow were at 0%, while S&P 500 futures slipped -0.11% and Nasdaq futures dropped -0.27%. Federal Reserve Chairman Jerome Powell is also scheduled to speak at a conference in Washington DC as the stock market opens. Corporate news Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@ and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.
Business Insider
22-07-2025
- Business
- Business Insider
CLF Earnings: Cleveland-Cliffs Stock Rallies on Strong Q2 Beats
Cleveland-Cliffs (CLF) stock rallied Monday after the American steel company posted its Q2 2025 earnings report. It reported adjusted earnings per share of -50 cents, which was better than Wall Street's estimate of -71 cents. However, it was a negative switch year-over-year compared to 11 cents per share. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Cleveland-Cliffs reported revenue of $4.93 billion in Q2 2025, compared to analysts' estimate of $4.68 billion. Despite the beat, the company's revenue slipped 1.62% year-over-year from $5.09 billion. The company reported $323 million in non-recurring charges this quarter that were tied to its footprint optimization initiatives. CLF stock was up 4.54% in pre-market trading on Monday, following a 0.96% rally on Friday. The shares have also risen 0.85% year-to-date but were down 37.67% over the past 12 months. Cleveland-Cliffs Guidance Cleveland-Cliffs provided guidance for the full year of 2025 in its latest earnings report. The company expects the following: Capital expenditures of $600 million, compared to its previous outlook of $625 million. Selling, general, and administrative expenses of $575 million, compared to its prior guidance of $600 million. Steel unit cost reductions of $50 per net ton compared to 2024. Depreciation, depletion, and amortization of approximately $1.2 billion, compared to its previous guidance of $1.1 billion. Cash Pension and OPEB payments and contributions of $150 million. Lourenco Goncalves, Chairman, President and CEO, said, 'Our good cost performance in Q2 will be even further amplified into Q3 and Q4, with further expected improvements in adjusted EBITDA as a result.' Is Cleveland-Cliffs Stock a Buy, Sell, or Hold? Turning to Wall Street, the analysts' consensus rating for Cleveland-Cliffs is Hold, based on two Buy, five Hold, and a single Sell rating over the past three months. With that comes an average CLF stock price target of $8.27, representing a potential 12.76% downside for the shares. These ratings and price targets will likely change as analysts update their coverage after today's earnings.
