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Morningstar reports record global outflows of sustainable funds due to Trump's agenda
Morningstar, a researcher, said that investors withdrew an unprecedented $8.6 billion in the first three months of the year from global sustainable funds. The outflows were attributed largely to Donald Trump's shift away from climate and social initiatives. Europe accounted for the majority of the global $3.16 trillion funds. In the first quarter of 2019, net withdrawals from European Sustainable Funds reached $1.2 billion, which is a significant change from the net deposits in the previous quarter. This was the first time since 2018 that the region has seen net outflows. Morningstar's report stated that Trump's return as president deprioritized sustainability in Europe and that his executive orders against diversity equity and inclusion (DEI), have created new legal risk. Morningstar reported that concerns about fund performance in areas such as clean energy helped to drive money out. The U.S. withdrew $6.1 billion from the market in the first three months of the year, marking the tenth quarter straight that the United States has seen withdrawals. In a report accompanying this quarter's report, Hortense Biy, Head of Sustainable Investing Research at Morningstar Sustainalytics said: "The quarter marks a change, not only in flows but also in how sustainable investments strategies are perceived and positioned on the market." Bioy stated that "we're seeing more signs of consolidation, product development and rebranding, amid an intensifying ESG reaction in the U.S., which is now affecting sentiments in Europe." In the first quarter of 2016, 54 new sustainable products were launched, which is about half the number that was launched in the previous quarter. Asset managers rebranded sustainable funds by changing or dropping their environmental, governance, or social terms in the first three months, which is more than double the number of the previous quarter. (Reporting and editing by Diane Craft; Ross Kerber)
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PG&E's lower expenses cause it to miss first-quarter earnings estimates
PG&E Corp. missed its first-quarter profit estimate on Thursday as it was hit by higher operating expenses and interest costs. Interest rates that are higher for longer increases the borrowing costs of utility companies. These companies need to borrow more money for their expenses, such as grid maintenance. PG&E's interest costs rose by 2.7% in the first quarter of this year, to $734 millions. In January, multiple wildfires scorched thousands of acres in Los Angeles. This is expected to be the costliest natural disaster in U.S. History. Electric utilities in the area have also been under increased scrutiny. The utility expects to upgrade its wildfire safety systems and install underground powerlines for nearly 700 miles between 2025-2026. PG&E reported that the average residential electric rate in March was lower than it had been a year before. It expects natural gas rates to stay flat until 2025. PG&E said on a call after earnings that 90% of the equipment it sources is from domestic suppliers. It also believes its tariff exposure to be "very manageable". LSEG data shows that the company's total revenue for the quarter was $5.98 Billion, which is less than analysts' estimates of $6.14 Billion. Total operating expenses for the quarter ending March 31 were up 3.8% to $4.76 billion. Oakland, California's utility announced that it has increased its data center pipeline to 8.7 gigawatts (from 5.5 GW) and added nearly 3,000 new customers to its electric grid in the last quarter. PG&E's adjusted profit per share was 33 cents, compared to the analyst average of 34 cents. (Reporting from Bengaluru by Pooja menon; editing by Maju Sam)
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Engie CEO: Electricity demand growth is resistant to tariffs
Catherine MacGregor, CEO of French utility Engie, said that developments in electrification as well as data centres for artificial-intelligence should be "particularly resilient" to the trade conflict started by the United States through the implementation tariffs. The uncertainty surrounding tariffs imposed on U.S. President Donald Trump by the International Energy Agency in the last month has caused stock markets to fall. They also said that trade wars may cause slow growth for the data centre sector, which is a growing industry. MacGregor said at the annual general meeting of the company that to meet the net zero goals at European level you will need to electrify, even if there is not much economic growth. This... drives the growth in electricity demand. The term 'Electrification' refers to the development of batteries for electric cars and other processes required to achieve climate goals. "Then there is the AI and data centers aspect." She said that as hyperscalers invest more in training, it has a similar economic impact to (research and developement) investments. Engie has been involved in a number of projects involving data centres, including cooling and development. It is also developing methods to meet the majority of power requirements for data centers using renewable energy. (HgReporting By Forrest Crellin, Editing By Kirsten Donovan).
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Stocks rise, led by tech shares. Dollar falls after recent gains
Investors weighed up the latest comments about the U.S. China trade conflict, and the data that showed the U.S. labour market is holding steady. The dollar also fell after recent gains. S&P technology rose more than 2%, leading all S&P sectors. Alphabet was scheduled to release its quarterly results, which were up 1.7%. Beijing said that the U.S. would have to remove "all unilateral tariff measures" against China if the U.S. "truly wanted" the solution of the trade dispute. On Wednesday, the White House signaled that it was willing to reduce sweeping tariffs against China. Investors also considered the possibility that the Federal Reserve would cut interest rates for the first time in June. Beth Hammack, President of the Fed Bank of Cleveland, called on Thursday for patience in monetary policy, given the high level of uncertainty. However, she did not exclude a rate cut by June depending on economic indicators. Benchmark 10-year yields are at 4.33%. This is about five basis points less than on Wednesday. The yields on two-year US2YT=RR are about six basis points lower, at 3.807%. In the past week, U.S. president Donald Trump verbally attacked Fed chair Jerome Powell before retracting calls for his resignation. The first-quarter earnings report has been mixed. Businesses across industries have said they are increasing prices and are uncertain about the future because of Trump's policies and trade war. Unilever, the maker of Dove soap, pointed to a deteriorating consumer confidence in the United States. Meanwhile, shares of International Business Machines plummeted after the company announced that 15 of its government contract were cancelled as part of a cost-cutting initiative by the Trump Administration. The economic data released on Thursday revealed, among other things that the number of Americans who filed new claims for unemployment benefits increased marginally in the last week. This suggests the labor market is still resilient. The U.S. data showed that durable goods orders in March jumped much higher than expected. Jamie Cox said in a Harris Financial Group note that companies are ahead-running tariffs. Therefore, these durable goods data is not something to be excited about. The good news is companies are protecting earnings and margins. Investors will be pleased about this, he said. The Dow Jones Industrial Average increased 250.81 points or 0.63% to 39,857.38, while the S&P 500 rose by 69.93 or 1.29 percent to 5,445.79, and the Nasdaq Composite gained 304.24 or 1.82% to 17,012.29. The MSCI index of global stocks rose by 7.48 points or 0.93% to 815.69. The pan-European STOXX 600 Index rose by 0.38%. Japan's Nikkei rose 0.5%. Ryosei Acazawa, the Japanese tariff negotiator, was reportedly making final preparations to visit the United States on April 30 for a second round with his counterpart. The dollar index (which measures the greenback in relation to a basket including the yen, the euro and other currencies) fell by 0.24%, while the euro rose 0.37%, reaching $1.1355. The dollar fell 0.52% against the Japanese yen to 142.7. Oil prices rose as well, with spot gold rising 1.05%, to $3,321.99 per ounce. U.S. crude rose 0.32% to a price of $62.47 per barrel. Brent was up 0.21% to $66.26 a barrel.
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According to the rebel-appointed governor of eastern Congo, at least 10 people were killed by a mine collapse in eastern Congo.
The rebel-appointed governor of South Kivu Province said that at least 10 people died in the collapse of a goldmine in eastern Democratic Republic of Congo. Since January, M23 rebels have taken control of the two largest cities in east Congo. This is an intensification of a longstanding conflict that has its roots in the Rwandan genocide of 1994 and the struggle to control Congo's vast minerals resources. In a joint statement, the Congolese government and M23 made a commitment Released on Wednesday After talks in Qatar, there is a glimmer hope that the violence will stop. Douglas Dunia Masumbuko (the M23 South Kivu Governor) said on Thursday that 10 people had died at the Luhihi Mine, and the number could increase given the injuries. He blamed "uncontrolled construction" and "poor maintenance of gold-wells" for the incident. In the vast Central African nation, mining accidents are common, particularly at smaller, artisanal mines. The collapse of the mine was confirmed by Governor Jean-Jacques Purusi who was South Kivu's governor before M23 came into power. However, he did not give a number of deaths.
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Trump is expected to sign an executive order relating to deep-sea mines on Thursday, according sources
The U.S. president Donald Trump will sign an executive order to boost the deep sea mining industry on Thursday, the latest effort to tap into international deposits of nickel and copper, which are widely used across the economy. According to previous reports, the order is likely to speed up permitting for deep sea mining in international water and allow mining companies to bypass a United Nations review process. After the report about the executive order, shares of The Metals Company rose by 40% on Thursday to a 52-week-high of $3.39. Trump has already taken several steps to boost the domestic production of vital minerals and to combat China's dominant position in the industry, which supplies raw materials for many modern technologies and industries. This includes those related to clean technology and defense. He has, among other things, expedited the permitting process on 10 mining project across the United States. Since years, the International Seabed Authority, created by the United Nations Convention on the Law of the Sea (which the U.S. does not have ratified), has been examining standards for deep sea mining in international waters. However, it hasn't formalized them because of unresolved disagreements over acceptable levels of noise, dust and other factors. Trump's deep sea mining order will likely stipulate that the U.S. aims at exercising its rights to extract crucial minerals on the ocean floor and allow miners to bypass the ISA and apply for permits through the U.S. Department of Commerce National Oceanic and Atmospheric Administration mining code. Reporting by Jarrett Renshaw, Ernest Scheyder and Aidan Lewis
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USTR holds productive commercial meeting with Vietnam
In a Thursday statement, the U.S. Trade Rep Jamieson Greer said that he and his Vietnamese counterpart had a productive meeting in which they both agreed to make rapid progress in reciprocal trade. Greer and Vietnam’s Minister of Industry and Trade Nguyen Han Dien spoke Wednesday and "instructed [their] teams to engage in technical discussion in the coming days in order to discuss efforts on expanding market access and addressing unfair trade practices," according to the statement. The statement stated that "Both sides agreed it is important to make rapid progress toward reciprocal and equal trade between the United States of America and Vietnam." Vietnam had the fourth largest trade surplus of all U.S. trading partner countries, valued at $123.5 billion in last year. The U.S. has imposed a 46% tariff on it as part of the reciprocal measures announced early in this month by President Donald Trump. The U.S. has suspended the imposition of tariffs until July in order to facilitate negotiations. However, a 10% flat rate still applies. A tariff of 46% could seriously undermine the growth of Vietnam, which is heavily dependent on its main market, the United States and large investments from foreign manufacturers. Vietnam is a major industrial hub in Southeast Asia and a key security partner of the United States as it faces China's rising power. Pham Minh Chinh, the Prime Minister of Vietnam, instructed his officials on Tuesday to combat fraud in trade and counterfeiting as well as other issues that concern the United States. He also stated that Vietnam would buy more American products, including defense and safety products, as well as seek quicker deliveries of the commercial planes Vietnamese Airlines have ordered from America. Vietnam, under pressure from the United States, is tightening its controls on certain trade with China. This is to ensure that goods exported to the United States bearing the "Made in Vietnam label" have enough added value in Vietnam to justify this. Xi Jinping, the Chinese president, visited Hanoi in Hanoi and called for closer ties between Vietnam and China on trade and supply chain. (Reporting and editing by Katharine Wallis and Daniel Wallis; Doina Chiacu, David Brunnstrom)
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Executives at Valero US say that the license for Valero to import fuel from Mexico has been reinstated.
Gary Simmons, the Chief Operating Officer of Valero Energy Corp. told analysts during a conference call on its first-quarter earnings that Valero Energy Corp.'s license for fuel imports into Mexico had been reinstated after a suspension early in April. The Mexican tax authorities, who are the biggest buyers of U.S. fuels in Mexico, have suspended Valero’s import license since the beginning of this month, amid a crackdown on illegal motor fuel flows into the country. Simmons stated that Valero received the notice of suspension on April 9, as the Mexican customs had questions about Valero arising from an investigation Valero wasn't privy to. He added that Mexican authorities acknowledged the company's full compliance with import reporting and tax obligations after the company reviewed its records and data. Simmons stated that the suspension caused Valero to experience significant disruptions in their supply. The government was trying to curb illegal fuel imports and this action would have a positive impact on Valero’s business in the future, Simmons said. The Mexican government has intensified its efforts in combating illicit fuel trade by halting the importation of gasoline and diesel from This came after authorities in Mexico had seized several fuel trucks and a vessel in recent months, for what they claimed were illegal imports. (Reporting from Shariq Khan in New York and Nicole Jao; editing by Mark Porter.)
Ecotourism helps revive mangroves in a Filipino surfing location
Del Carmen Mangrove Reserve is a new Ramsar Site
Siargao is awash with illegal fishing and mangrove cutting
Ecotourism and behaviour change are key to protecting the mangroves
By Mariejo Ramos
He was once an illegal fisher, who cut down tropical woody trees for fuel. Now he protects them in a civilian patrol force.
We were forced to sell and cut mangroves because life was hard back then. "We couldn't find another job," Longos said.
Workers like Longos are now part of the solution because the local government has been working to provide job training and cultivate an ecotourism enterprise.
He proudly pointed out a mangrove baby he planted along the water.
The mangroves in the area were reduced for decades by destructive fishing techniques like dynamite use and illegal deforestation to make wood for bread or charcoal.
According to the local authorities, through replanting, the Del Carmen Mangrove Reserve has grown from 4,200 ha of mangroves to more than 4,800 ha.
The Ramsar Convention on Wetlands (an international treaty named for the city in Iran, where it was signed, in 1971) that guides conservation of wetlands throughout the world, designated the reserve as a Wetland Reserve of International Importance in August 2024.
Longos patrols the mangrove reserve from its viewing platform, earning him an honorarium each month of 9,000 pesos ($158). He uses his fishing boat to give paid tours of the mangrove reserve in his spare time.
Del Carmen Mayor Alfred Coro says the stories of small town fishermen like Longos shows that even communities with limited resources can stop environmental destruction.
He said that gaining the support of people through education, ecotourism opportunities and training is more important than policing.
Coro said that for a long time, previous leaders in Del Carmen had been told it was impossible to persuade people to stop illegal mangrove harvesting and illegal fishing.
He said that it took a decade for them to convince people of the importance of mangroves and to stop using illegal methods.
He said that he was limited in financial resources and the majority of his efforts were done through dialogues between fishermen at their homes, as well as community-based campaigns to inform people about mangrove conservation.
The local government started the tours, and now they are run by fishing groups. The tour fee is divided between the fisherman and his group, which amounts to about 600 pesos per trip.
The town has been preparing for growth in tourism and development since last year when it was awarded the Ramsar certification.
In 2023, more than half a millon tourists will visit Siargao, the highest number ever recorded. They are attracted to the impressive waves and surf spots in the area, which have been popular since the 1980s, when the sport began gaining popularity.
SUSTAINABLE TOURISM
Researchers fear that more visitors to Siargao could put strain on the natural resources of the island and cause waste problems such as plastic and marine debris.
The Asian Development Bank found that an increase in Siargao waste is "attributable" to the surge of tourists.
The study found that sustainable tourism could be implemented to protect marine life and support local incomes.
Del Carmen's municipality has encouraged its residents to make money through eco-tours, and to take care of mangroves to ensure that tourism will support the community for a long time.
Longos, a fisherman from the Philippines, was taught about mangroves' science and encouraged to participate in campaigns and replantings for their protection. Coro said that when they first started, "they had doubts."
Since 2014, hundreds of illegal fishermen and mangrove cutters have become tourism operators. The town offers 100 ecotrips a day, says a local tourism official.
These tours are staffed by guides, boat captains, and assistants.
Coro said, "You can tell how much their lives have improved."
The mayor stated that developing alternative sources of income has ripple effects on the local economy.
Del Carmen, which was a town of the Philippines with the lowest level of income as a fifth-class municipality, became a third class municipality this year.
Local government data revealed that the average monthly family income in Del Carmen increased from 2,000 pesos (34.95 USD) in 2010 up to 17,000 pesos (297.05 USD) in 2024. The poverty rate also decreased from 69% to 21% in 2010.
The income of the town from tourism grew from 1.2 millions pesos (about $21,000) in 2020, to 9.2million pesos (about 160,381) by 2024.
Longos says that by fishing legally and guiding ecotours he has been able to send all four of his children to school.
Gina Barquilla said ecotours prevent overfishing, which may destroy mangroves habitats, because the income from tours encourages people to spend less money catching fish.
A Task for the Community
Barquilla said that mangroves in Siargao (a teardrop-shaped island) helped to protect the area from a powerful typhoon 2021. They also lessened the impact of strong waves and the rising sea level for coastal fishing villages.
She has spent more than 10 years educating illegal fishermen and mangrove cutters at home and chasing dynamite fishing boats on the sea, despite threats and harassment.
In rare cases, such as in February, fishermen have been arrested for using dynamite against schools of fish.
She said that the best strategy is to go out and educate the local communities about the importance of mangroves, conservation and science.
She and other ecotourism activists said that generations of families have survived off the money made from cutting mangroves. Therefore, educating youth is crucial, they said.
(source: Reuters)