Trump halts $300bn in clean energy loans

Key takeaways

European banks are experiencing a resurgence in profits, with significant dividends being returned to shareholders.
Trump's halt on green funding poses risks to the future of renewable energy projects in the US.
Strained US-Russian relations may face more sanctions as Trump seeks to impose further pressure.
Mining companies in Africa are facing governmental pressures and increased nationalism over resource control.
AI technology is on the brink of transforming the drug discovery landscape, potentially accelerating timelines significantly.

Summary

European Bank Dividends Surge

European banks are witnessing a remarkable rebound, with dividends reaching their highest levels since 2007, thanks to bumper profits and increased shareholder returns. In 2023, they are on track to distribute nearly 123 billion euros to shareholders for the second consecutive year, marking a significant recovery from the handouts that were limited post the 2008 financial crisis and during the pandemic.

Trump's Freeze on Green Funding

In a sweeping executive action, President Trump has frozen billions in federal funding aimed at green infrastructure, an agenda central to Biden's economic strategy. This includes around 50 billion in conditional loans and an additional 280 billion in pending loan requests for renewable energy projects, significantly unsettling the clean energy sector and potentially halting various initiatives.

Increased Sanctions on Russia

Amid ongoing tensions, Trump is imposing further sanctions on Russia if they fail to negotiate an end to the war in Ukraine, though prior sanctions from the Biden administration have already severely impacted US-Russian trade. The efficacy of new sanctions remains uncertain.

Mining Companies Under Pressure in Africa

Military regimes in the Sahel region, particularly in Mali, Burkina Faso, and Niger, are intensifying their crackdown on international mining companies, asserting greater control over resources. The regimes are enforcing new mining codes to increase governmental ownership in operations, leading to arrests and heightened tensions, leaving multinational firms to reassess their investments.

AI Revolutionizing Drug Discovery

Demis Hassabis of Google's Isomorphic Labs predicts that artificial intelligence will soon enable a new era in drug discovery, significantly speeding up the process from an average of 5-10 years to potentially 10 times faster. This innovation, targeting key diseases, reflects the startup's growing influence and partnerships within the pharmaceutical industry.

Show notes

Europeanbank dividends are at their highest levels since 2007, US President Donald Trump froze billions of dollars in federal funding to green infrastructure projects, and Trump said yesterday that the US would impose more sanctions on Moscow if its war in Ukraine doesn’t end soon. Plus, military regimes in Africa's Sahel region are cracking down on international mining companies.

Mentioned in this podcast:

European banks to reward investors with bumper €123bn in payouts

Donald Trump halts more than $300bn in US green infrastructure funding

Trump tells Putin to reach Ukraine ‘deal’ soon or US will increase sanctions

AI-developed drug will be in trials by year-end, says Google’s Hassabis

The ‘terrifying’ crackdown on mining companies in Africa’s coup belt

The FT News Briefing is produced by Niamh Rowe, Fiona Symon, Sonja Hutson, Kasia Broussalian, Lulu Smyth, and Marc Filippino. Additional help from Michela Tindera, Breen Turner, Sam Giovinco, Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Our engineer is Joseph Salcedo. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music.

Read a transcript of this episode on FT.com

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