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Gold, silver, and oil surge amid US-Venezuela conflict
The majority of major stock indices rose on Monday at the beginning of a holiday-shortened week. Shares of Nvidia were up, and the yen was stronger versus the U.S. Dollar after Japanese officials warned of "one-sided, sharp" currency movements. Gold and silver prices soared to new records, and oil prices rose as well after the U.S. Coast Guard started pursuing an oil-tanker near Venezuela in international waters a day before. Nvidia gained 1.3%. The company told Chinese clients that it plans to begin shipping its second most powerful artificial intelligence chip to China before mid-February's Lunar New Year holiday. The financials also increased. TRADING VOLUMES ARE EXPECTED BE LIGHT Trading volumes may be low through the end week, as the U.S. stock and bond markets are closed for Christmas on Thursday. The late November downdraft is the intermediate bottom which has brought many technology, AI and Data-center names down. Bruce Zaro of Granite Wealth Management in Plymouth Massachusetts said, "I do believe that's the bottom." He said that the market was "entering Santa Claus period", which is a time when stocks are typically strong. The Dow Jones Industrial Average gained 233.48, or 0.48 %, to 48 367.72. The S&P 500 rose 41.16, or 0.60 %, to 6,875.66. And the Nasdaq Composite gained 128.10 points, 0.55% to 23,435.00. European stocks closed down 0.1%. Japan's Nikkei finished up 1.8%, extending Friday's bounce. Atsushi?Mimura, Japan’s top currency diplomat, said to reporters that recent FX movements were unbalanced and abrupt, adding that government will take appropriate actions against excessive moves. Minoru Kihara, the Chief Cabinet Secretary, also warned about yen's continuing weakness. Investors interpreted the comments as an indication of Tokyo's intervention. The dollar fell as low as 156.88 yen last week, or about 0.5%. The minutes of the Bank of Japan's meeting will be released on Wednesday. On Christmas Day, the head of central bank will speak to a Japanese business lobby. Benchmark U.S. Treasury yields increased with the yield of 10-year Treasury Notes last up 1.2 basis point at 4.162%. Gold spot was up 2.3% to $4,436.29 an ounce, after reaching a new high of $4440.21. Spot silver rose 2.1% to $68.55 per ounce after reaching a new record of $69.44. Brent crude settled at $62.07 per barrel, up $1.60. (Reporting from Caroline Valetkevitch, New York, and Nell Mackenzie, London; additional reporting provided by Wayne Cole; editing by Stephen Coates; Toby Chopra; Rod Nickel).
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US Interior Dept. weakens protection for sage-grouse to allow more oil and minerals development
The Trump administration rolled back protections on Monday for the greater Sage-grouse in 8 western states of?U.S. The Trump administration has opened up more federal land for energy and mineral development. The Bureau of Land Management (BLM) said that proposed changes would allow more development space than was allowed in 2015 plans while still protecting some important habitats for endangered birds across 65 million acres of sagebrush land. The agency said that the changes made to sage grouse protections are in accordance with two executive orders signed by Donald Trump earlier this year, which were intended to unleash U.S. production of energy and energy independence. Bill Groffy, Acting Director of the Bureau of Land Management, said: "We're strengthening American energy security while ensuring that the sage grouse continues its flourishing." In early 2010, the Endangered Species Act was amended to include greater sage grouse as a protected species. This was due to the rapid decline of the population. The Trump proposal would eliminate an annual warning system which aimed to flag declining populations of the ground-dwelling birds, as well as removing protections from more than 4 million acres sage grouse habitat in Utah. Idaho, Montana and North and South Dakota are also affected, as well as Nevada, Wyoming and California. Environmentalists have warned that opening up more federal land for energy extraction will push bird species into extinction, and harm other species. Randi Spivak is the public lands director for the Center for Biological Diversity. She said that Trump's reckless actions would speed up the extinction rate of the greater sage grouse if he allowed unrestricted fossil fuel extraction on tens and millions of acres of federal lands.
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Mercedes settles with US States for $150 Million over Diesel Scandal
Mercedes-Benz reached a settlement of $149.6 Million with U.S. States to end a??long-running probe into allegations that the German automaker had cheated on diesel emissions, New York Attorney-General Letitia Jim said Monday. The automaker said that the deal effectively ended its legal issues in America over Dieselgate - first discovered at Volkswagen in September 2015 - and the emissions scandal. Mercedes has agreed to pay $149.6 millions and provide $2,000 in payments for eligible owners and lessors of vehicles that have received the required emission repairs. Mercedes agreed to take a number of 'actions' to avoid future misconduct, and to comply with the oversight requirements. According to the states, Mercedes had installed illegal software that was not disclosed in its diesel vehicles, which hid true pollution levels and incorrectly reduced emissions during government tests. However, in normal driving conditions the vehicles emit up to 30 or 40% more than the legal limit. MERCEDES SAYS THE BOTTOM LINE OF THE GROUP WILL NOT BE AFFECTED Virginia Attorney General Jason Miyares stated that?the settlement includes the estimated?39.565 U.S. cars that have not been repaired or removed permanently from the road by the end of August 2023. Mercedes must cover the cost of installing the approved software for emission modification on all affected vehicles, provide consumers with an expanded warranty and pay them $2,000 each. Mercedes' spokesperson stated that the bottom line earnings of the group would not be affected, and "sufficient provisions have been made for the cost of the overall settlement". In a press release, the company stated that final court approval is required for these settlements. Mercedes-Benz has agreed to pay $2.2billion in 2020 to settle a U.S. Government investigation into diesel emissions cheating and to settle claims from 250,000 U.S. car owners. The automaker is required to pay $120 million immediately as part of the settlement announced Monday. The suspension of $29.6 millions will result in a reduction by $750 per affected Mercedes vehicle that is repaired, taken off the market or bought back. In 2020, the states will launch an investigation into Mercedes-Benz following Volkswagen's diesel emission scandal. VW paid more than $20 billion to settle fines and penalties after admitting in 2015 that it had installed "defeat devices", sophisticated software and other methods of cheating emissions tests in almost 11 million cars worldwide. Some of the biggest automakers in the world continue to be sued over the scandal. Mercedes could face further payouts in England where it's one of many companies, including Ford, Nissan, and Renault, facing a mass suit launched in October. Reporting by David Shepardson in Washington and Valerie Volcovici and Rachel More from Berlin, with editing by Barbara Lewis.
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Italian prosecutors request that the case against suspected Russian drones be dropped
Two sources with knowledge of the case said that Italian prosecutors who were investigating suspected Russian drone flight over an EU space-research centre had concluded that their suspicions weren't based and asked for the case to be dropped. The Milan prosecutor's office found that the interference caused by a private GSM signal booster in Ispra near Italy's Lake Maggiore, which is near the European Joint Research Centre (JRC), was actually responsible for 21 alleged overflights. Flights are banned over the JRC. The JRC was established in 1960 to conduct nuclear research. In March, after receiving alerts from the facility's security team, the prosecutors opened an investigation into "possible political or military espionage" for terrorist purposes. They suspected the presence of a "Russian-made drone." Sources said that the investigation revealed the false positives were caused by interference from both the centre's security system and the GSM amplifier at a nearby house. The?judge of the Milan court now has to decide whether or not to accept the request from the prosecutors and drop the case. This is a normal formality. NATO allies accuse Russia frequently of mounting hybrid attacks against the West via hacking, sabotage, and?espionage. Moscow denies these allegations and says the West is causing anti-Russian sentiment. According to the JRC's website, the Ispra campus is the third largest research campus in Europe after Brussels and Luxembourg. It works on topics ranging from nuclear security and space, to sustainable resources, immigration and transport. (Reporting and editing by Gavin Jones, Frances Kerry, and Emilio Parodi)
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Mercedes Benz settles with US States for $149,6 Million over diesel emissions
Mercedes Benz reached a settlement of $149.6 Million with U.S. States to resolve a long-running probe into allegations?of cheating on diesel emissions?by the 'German automaker New Letitia James, York Attorney General, said on Monday. The settlement reached with Puerto Rico, the District of Columbia and 48 U.S. States includes the following: Mercedes will pay $149.6 millions and make $2,000 payments to owners and lessees of vehicles that require emissions repairs. Mercedes also 'agreed' to take a number of steps to prevent further misconduct and comply with the oversight requirements. The States?said Mercedes Benz has agreed to pay $2.2billion in 2020 to settle a U.S. government investigation into diesel emissions cheating and the claims of 250,000 U.S. car owners. In a new settlement, Mercedes Benz must pay an immediate $120 million to the states. The remaining $29.6 millions is suspended, and the amount will be reduced by $750 per affected vehicle Mercedes repairs or removes from the market. It paid out more than $20 billion in fines and penalties after admitting?in 2015 that it had cheated on emissions tests by installing sophisticated software and "defeat devices". Reporting by David Shepardson in Washington and Valerie Volcovici
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Trump names envoy to Greenland and stirs up backlash
U.S. president Donald?Trump appointed Louisiana Governor Jeff Landry as his special ambassador to Greenland on Sunday, drawing renewed criticism from Denmark and Greenland about Washington's interests in the mineral rich Arctic island. Trump has argued that Greenland should become a part of the United States. He cites its strategic importance as well as its mineral resources. Landry, the governor who assumed office in January 2024 publicly supports this idea. You cannot annex a country. In a joint press release, Danish Prime Minister Mette Fredericksen and Greenland Prime Minister Jens Frederik Nielsen stated that they would not annex another country. "Greenland is owned by the Greenlanders, and the U.S. will not take it over." Trump said in a post at Truth?Social: "Jeff knows how important Greenland to our National Security is, and will work hard to advance our Country's interests for the safety, security, and survival?of allies and the world." The White House didn't immediately respond to comments. Landry thanked Trump in a post he made on X: "It is an honor... to serve... as a volunteer in this position in order to make Greenland a member of the U.S." This does not affect my position as the Governor of Louisiana! The Trump administration increased pressure on Copenhagen on Monday when it suspended the leases of five large offshore projects that were being built off the East Coast in the United States, including two developed by Denmark's state-controlled Orsted. GREENLANDS STRATEGIC VALUE Greenland is a former Danish Colony with 57,000 people. A 2009 agreement gives it the right to declare its independence, but the country remains heavily dependent on Danish subsidies and fishing. The strategic location of the country between Europe and North America is a major site for U.S. missile defence systems, while its rich mineral resources have increased U.S. interests in reducing their reliance on Chinese imports. Greenland's Nielsen posted on Facebook that "we have woken again with a new statement from the U.S. President." This may sound important, but for us it doesn't change anything. "We decide our future." DIPLOMATIC TENSIONS ESCALATE Lars Lokke Rasmussen, the Danish Foreign Minister, said on Monday that he will summon U.S. The U.S. Ambassador Kenneth Howery had pledged "mutual" respect during his recent visit to Greenland. "At the drop of a hat, there's now a U.S. special presidential representative who is, according to him,?tasked with assuming control over Greenland. Rasmussen said on TV2 that this was, "of course, totally unacceptable". Denmark has been trying to mend strained relations with Greenland in the last year. It also tries to ease tensions with the Trump Administration by investing in Arctic defense to respond to U.S. critics of inadequate security. In an Instagram post, Prime Minister Frederiksen stated: "It's a difficult situation our lifetime allies put us in." Mikkel Vedby, a professor of political science at the University of Copenhagen, said: "This appointment proves that all the money Denmark invested in Greenland and in the defense of the Arctic as well as all the nice things we've said to Americans have had no impact at all." Reporting by Siddharth Cavale in New York, Arathy Sommesekhar, in Houston, and Jacob GronholtPedersen, in Copenhagen. Additional reporting by Anusha Shah in Bengaluru; SOren Sirich Jenppesen, Stine Jacobsen, in Copenhagen. Editing by Saad, Gareth, and Ros Russell.
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Pension dispute may prolong the strike at Brazil's Petrobras
Union leaders and executives have said that a dispute over payment deductions involving about 50,000 retired Petrobras workers may prolong the strike at Brazil's state-owned oil company. The central issue in the strike that has now lasted a week is resolving the deduction of around 20% from 'pensioners' pay slips by the largest pension funds of the company. A company source who spoke on condition of anonymity said that the solution was neither simple nor cheap. The impact, he added, would be in the billions. Union leaders say that deductions are due to a shortfall on the accounts of the funds. Negotiations about how to cover this have been going on for over two years. The amount Petrobras will need to pay to cover the shortfall was not disclosed by either side. The strike affected oil platforms in the Santos-Campos basins as well as refineries and biodiesel plants. Petrobras said that the strike "has not affected production" despite the two accidents that occurred on platforms, which union leaders blamed on the use of contingency teams by the company. Letter of Commitment Even if Petrobras and the unions reach an agreement, it would still be necessary to have the matter approved by oversight agencies, which could take several months. To end the strike, union leaders only want a letter from Petrobras stating that it will reduce payment deductions substantially. Union leaders decided to strike to pressure the firm ahead of Brazil's presidential election in 2026. They feared that talks could stall and that if leftist president Luiz Inacio Lula Da Silva, who is sympathetic to workers' demands, loses his re-election campaign, it would undo years' worth of work. Paulo Cesar Martin is a director of the FUP union. Petros, the company that manages Petrobras’ pension funds, has said this issue is being given priority. According to union leaders, in addition to pension issues, higher wages are on the table for negotiation.
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German Engineers are Building Future-Proof Forests
Forest engineers use biodiversity for future-proofing forests Plantations of Spruce are vulnerable to pests and climate change Long-term forest restoration is hindered by financial challenges Joanna Gill From the 35-metre tower, all that is visible now is a flattened plateau. The trees are gone after being wiped out by a bark beetle infestation in 2018. Experts call this "calamity" that happened so quickly, 60-year-old oak trees fell in a matter of weeks in this forest in North Rhine-Westphalia along Germany's border to the Netherlands and Belgium. Petra Trompeter of Arnsberg's city forestry department said, "It is shocking for me, and for every forester." She was squinting in the low winter sunlight from the base the tower. Over many years, storms and droughts created conditions that allowed bark beetles the opportunity to consume rows upon rows of spruce. According to the World Meteorological Organization, 2024 will be the first year that global warming exceeds 1.5 degrees Celsius (2.7 Fahrenheit). Climate change disasters will increase in intensity and frequency in a warmer world. They could also threaten the ability of forests to absorb carbon and thousands of jobs in the tourism and wood sectors. The independent Expert Council on Climate Issues in Germany warned that the country may miss its climate targets after 2030 as forests and wetlands, which were previously carbon sinks, are now becoming sources of emissions as a result of forest degradation. Forest engineers in North Rhine-Westphalia are now working to create resilient forests by combining tree species. This is part of a European Union-funded program. Trompeter said that even before the disaster we had been working to make the forest more diverse and structurally rich. The calamity forced us to act more quickly. Future Forests After World War Two, Germany planted spruce trees to harvest timber to pay reparations owed by the Allies. The species is favored by timber producers for its rapid uniform growth. These single-species plantations make?North Rhine-Westphalia’s forests vulnerable to heat, pests and drought. When everything is going well, the returns are positive, but when extreme weather causes mass tree losses, these are seen as "inevitable". Monoculture plantations may also be partly responsible for Germany's forests being unable to absorb carbon. He said that "natural forests can hold a lot more carbon." Diversification has been identified as a possible solution and is currently being tested across Europe. The 20 million-euro SUPERB Project, led by the European Forest Institute, and funded through the EU Green Deal, has seen forestry experts from Sweden to Spain set up twelve demonstration sites, including Arnsberg, in order to restore habitats, and transform monocultures. The Arnsberg area is 34 hectares and includes both public and private land. Forestry experts carefully selected four conifers and broad-leaf trees they believed could adapt to altitude and climate, and withstand hotter and dryer conditions in the future. Marcus Lindner is the head of resilience at the European Forest Institute. While the majority of forestry experts agree that variety is important, there are differing opinions on how to achieve it. Others prefer curated plantings of local species while others want to experiment with nonnative trees. Trompeter explained that this is not possible because nature protection laws in North Rhine-Westphalia only allow for local species. "And there we reached our limit." Banning on Biodiversity According to the German Agriculture Ministry, trees?play a critical role in the economic system, providing 76 million cubic meters of timber each year, 750,000 employment opportunities in forestry and wood, as well as boosting the rural economy through eco-tourism. Rouven Soyka is the press officer of the Sauerland Tourism Board. The Sauerland region in?North Rhine-Westphalia has a hilly terrain that's a popular hiking destination. However, the massive dieback caused the area to be unrecognisable to some visitors. Nature tourism is affected by all means. It's very important that nature is preserved in our classic outdoor region. Many forest owners cannot afford to reforest without state subsidies that do not cover the entire cost. Peter Jungermann says that he must think twice about investing in high-maintenance broad leaf varieties, rather than market-friendly conifers. This is especially true given the financial pressures on forest owners. It can be a "existential threat" to the nursery if he makes the wrong decision about which tree he should plant. The shifting political winds can also complicate planning for the future. Due to the backlash of businesses and farmers, key laws that were meant to be part the EU's Green Deal have been watered-down in the last year. It is still unclear how much money the EU budget for 2028-2034, which amounts to 2 trillion euros (2.35 trillion dollars), will allocate to forest restoration. Negotiations are expected to take place over the next two-year period. The German budget for 2026 prioritizes defence and infrastructure as the government tries to revive a sluggish economic. Trompeter said that forests are essential to human life and the health of the planet. "Where else can we spend it than on preserving nature and making it climate resilient?"
Plunging solar capture rates to test nerve of Europe's policymakers: Maguire
Wholesale power prices coming under pressure from rising solar output is not a new idea in power markets, but looks set to become a. possibly dissentious issue across Europe as rampant growths. in solar output overthrow market pricing patterns.
Power generated by photovoltaic panels is the least expensive source of. electricity in a number of areas, and tends to drive down the. cost of wholesale power during peak solar output durations,. wearing down margins for power manufacturers.
The phenomenon, known as the renewables cannibalization. effect, is especially acute in Europe's electricity system. which focuses on tidy electricity supplies and where. political leaders have set enthusiastic decarbonization goals developed to. reduce reliance on imported nonrenewable fuel sources.
Renewables-driven rate disturbances have actually gained extensive. attention in the United States due to the creation of a. so-called 'Duck Curve' in Californian power costs, where. massive volumes of solar output during the middle of the day. flood the market simply as total power need is at a lull.
To accommodate that surplus power load, power prices tend to. plunge in a way that is similar to the shape of a duck's stubborn belly,. before rising again later on as solar output decreases.
Europe's integrated power markets should brace for similar. periods of price disturbance, following fast expansions in solar. capability across the continent.
These disruptions have the possible to momentarily. weaken the economics of power production from all sources,. and may therefore hinder financial investments in more local. generation capability at a crucial time.
For policymakers who support a rapid shift of energy. systems far from fossil fuels while guaranteeing continued power. sector stability, bouts of possibly loss-making power rates. due to surplus solar output may be unnerving.
However authorities can take heart from the reality that energy. customers are currently seeing the advantages of higher renewables. output in the form of lower costs.
And in the longer term, customers will also be better. secured from future fuel cost shocks as soon as the develop out of. home-grown eco-friendly power capability is total.
However over the nearer term, policymakers, energy customers and. power producers alike should prepare for more swings in power. expenses as the generation mix in Europe continues to evolve from. primarily fossil fuel-based to being overwhelmingly operated on clean. fuels.
FAST TRACK
After Asia, Europe has actually been the fastest growing market for. new solar capability for the previous years, adding 172 gigawatts. ( GW) of capability between 2012 and 2022, according to energy. think tank Ash.
That compares to almost 600 GW of capability additions across. Asia, and around 110 GW of capability development in North America over. the same period.
Capability information for 2023 has yet to be validated, however. eco-friendly industry analysts and specialists approximate that Europe. will have set a brand-new installation record again last year.
That quick development pace has actually enabled solar power to get a. growing share of Europe's total electrical power generation mix,. which has doubled from around 5% throughout the summer of 2019 to. simply under 11% last summertime, and the highest of all regions.
On the other hand, solar's share of electrical energy generation in Asia. peaked listed below 7% last summertime, while in North America peaked. at around 6.37%, Coal information shows.
CATCHING THE RATES IMPACT
The impact of such a quick climb in solar output has already. misshaped Europe's power markets, and has resulted in energies. making diminishing revenues from renewables.
As additional solar capability has been brought online in. several countries, regional power costs responded by trending. broadly lower, specifically throughout high solar output periods.
Price forecasting designs have actually likewise had to be updated to. represent the growing share of sustainable power in generation. systems, with so-called capture rates and capture rates being. used to determine the effect of renewable cannibalization.
The capture cost is a weighted typical rate throughout which. the power generation asset produces electrical power, and is. revealed relative to the baseload agreement price paid to fossil. fuel-based power manufacturers.
The capture rate is a procedure of the capture rate divided. by market value available for the power produced, revealed as a. portion.
When it comes to a gas plant that only produces power. throughout peak demand durations, the normal capture rate can be. 100%, as the plant can despatch optimal volumes to satisfy need. needs at peak rates, and then reduce or stop output when need. and rates decline.
For renewables assets, the capture rate is typically less. than 100%, and can be far lower for solar properties that only. produce electrical energy when the sun shines and typically hit peak. output simply when demand and prices may be near their lowest. throughout a typical day.
GERMANY AND SPAIN FEEL THE PAIN
Power cost designs in Germany and Spain clearly reveal the. effect of decreasing capture prices and rates due to expanding. solar output.
Due in part to rapidly increasing electricity from solar farms,. the wholesale power price from solar properties in Germany decreased. to the most affordable in nearly four years this month, according to. prices designs compiled by LSEG.
In turn, the lower solar-driven costs have actually dragged the. total German wholesale rate lower.
The capture rate for German solar assets has likewise decreased. this month, plunging to as low as 50% of the baseload power. contracts, LSEG information shows.
The capture rate is even lower in Spain, where plentiful. sunshine leads to a rise in solar output that can often far. go beyond system need requires during the day.
Spain's solar capture rates are expected to typical around. 85% for the rest of 2024, however decrease gradually over the coming. years to around 60% by 2030 and 45% by 2035.
Power developers concerned about the earnings impact of such. capture rate erosion could slow their development rate, and. therefore possibly threaten national or local energy. shift momentum.
However if policymakers keep a long-term view in mind of the. gain from a totally established renewable resource system,. appropriate incentives for power designers might be produced to. ensure the rate of the area's energy transition is kept.
<< The opinions revealed here are those of the author, a. writer .>
(source: Reuters)