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IFC and BTG Pactual invest up to $1 Billion in Latin America Sustainability
BTG Pactual, a Brazilian lender, and International Finance Corporation (the private sector arm of the World Bank) announced Thursday that they would invest up to $1 billion on sustainable development and sustainability initiatives. Why it's important Globally, the private sector has become increasingly involved in sustainability. Private institutions are promoting climate finance as well as development-focused investments. Brazil is the home of much of Amazon Rainforest and is a crucial region for biodiversity and solutions to climate change. BTG Pactual, Latin America's biggest investment bank, is headquartered in Brazil. By the Numbers By the end of 2028, the partnership will mobilize $1 billion through co-financing and equity investments. KEY QUOTES Alfonso Garcia Mora is the regional vice-president of IFC for Europe, Latin America, and the Caribbean. He said, "The private sector must play a major role in driving the climate agenda, and transforming initiatives that will improve lives and promote economic growth." BTG Pactual CEO Roberto Sallouti stated that "the allocation will be done with care, adhering both to financial and technical criteria." ADDITIONAL CONTEXT IFC and BTG stated that the investments were aimed at boosting initiatives in Brazil and Latin America to combat climate change and promote sustainable growth. They also targeted social and environmental development as well as conservation, infrastructure and so-called "bioeconomy". (Reporting and writing by Paula Arend, Editing by Cynthia Osterman).
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Tensions between the US and Venezuela are rising as US warships arrive at the Southern Caribbean
The tensions between the United States of America and Venezuela are increasing amid the large U.S. Naval buildup in the Southern Caribbean, and other nearby waters. U.S. officials claim that this is to combat threats from Latin American Drug cartels. U.S. president Donald Trump made cracking down drug cartels one of the central goals of his administration. This is part of an effort to limit immigration and secure the U.S. south border. The U.S. Coast Guard and Navy regularly deploy ships to the Southern Caribbean. However, this deployment is much larger than normal. An anonymous U.S. official said that on Thursday, seven U.S. Warships and one nuclear-powered Fast Attack Submarine were in the Southern Caribbean or expected to be in the area in the next week. Venezuelan President Nicolas Maduro condemned the move. He said that Venezuela is "threatened by nuclear submarines" in violation of international agreements. The exact mission is not known, but Trump's administration says it will use the military against drug cartels and other criminal groups. It has also directed the Pentagon prepare options. The White House announced on Thursday that Trump is ready to "use every element of American power" to stop the drug invasion into our country. Karoline L. Leavitt, White House Press Secretary, told reporters that "many Caribbean nations as well as many countries in the region" have applauded efforts and operations to combat drug trafficking. In February, the Trump administration declared Mexico's Sinaloa Cartel, other drug gangs and Venezuelan criminal group Tren de Aragua as global terrorist groups. USS San Antonio and USS Fort Lauderdale are part of this buildup. Sources have confirmed that the ships carry 4,500 servicemen, including 2,200 Marines. Officials have confirmed that the U.S. military also flies P-8 spy planes to gather intelligence in the region, even though they operate in international waters. "Our diplomacy doesn't involve cannons or threats because the world is not the same as it was 100 years ago," Maduro said. His government announced last week that 15,000 troops would be sent to the states on its western border to Colombia to fight drug trafficking organizations. Maduro also ordered civil defense groups to be trained every Friday and Saturday. Maduro's administration accuses foreigners and the opposition of conspiring to harm Venezuela with U.S. entities, such as the CIA. The opposition and the U.S. always deny these accusations. The government calls sanctions "economic warfare." Rod Nickel (Editing and Reporting)
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Tensions between the US and Venezuela are rising as US warships arrive at the Southern Caribbean
The tensions between the United States of America and Venezuela are increasing amid the large U.S. Naval buildup in the Southern Caribbean, and other nearby waters. U.S. officials claim that this is to combat threats from Latin American Drug cartels. U.S. president Donald Trump made cracking down drug cartels one of the central goals of his administration. This is part of an effort to limit immigration and secure the U.S. south border. The U.S. Coast Guard and Navy regularly deploy ships to the Southern Caribbean. However, this deployment is much larger than normal. An anonymous U.S. official said that on Thursday, seven U.S. Warships and one nuclear-powered Fast Attack Submarine were in the Southern Caribbean or expected to be in the area in the next week. Venezuelan President Nicolas Maduro condemned the move. He said that Venezuela is "threatened by nuclear submarines" in violation of international agreements. The exact mission is not known, but Trump's administration says it will use the military against drug cartels and other criminal groups. It has also directed the Pentagon prepare options. In February, the Trump administration declared Mexico's Sinaloa Cartel, other drug gangs and Venezuelan criminal group Tren de Aragua as global terrorist groups. USS San Antonio and USS Fort Lauderdale are part of this buildup. Sources have confirmed that the ships carry 4,500 servicemen, including 2,200 Marines. Officials have confirmed that the U.S. military also flies P-8 spy planes to gather intelligence in the region, even though they operate in international waters. "Our diplomacy doesn't involve cannons or threats because the world is not the same as it was 100 years ago," Maduro said. His government announced last week that 15,000 troops would be sent to the states on its western border to Colombia to fight drug trafficking organizations. Maduro also ordered civil defense groups to be trained every Friday and Saturday. Maduro's administration accuses foreigners and the opposition of conspiring to harm Venezuela with U.S. entities, such as the CIA. The opposition and the U.S. always deny these accusations. The government calls sanctions "economic warfare." Rod Nickel (Editing and Reporting)
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EU scraps tariffs on US products to allow for lower car duty
The European Commission on Thursday proposed removing duties on imports of U.S. Industrial Goods in exchange for reduced U.S. Tariffs on European Cars, which is a crucial part of the Trade Agreement between the EU and United States that was signed last month. The proposals are the first step taken by the EU to implement the framework agreement reached between U.S. president Donald Trump and Commission president Ursula von der Leyen, on July 27. In that agreement, the EU agreed to a 15% general tariff in order for a trade war not be a destructive one. From August 1, the United States has agreed to lower its tariffs on vehicles built in the European Union from 27,5% to 15%. The deal ended the conflict between two of the largest trading partners in the world. However, it was an asymmetrical agreement, as Washington retained tariffs on 70% EU exports while Brussels had to reduce its duties and purchase more U.S. products. Trump has repeatedly railed against Europe, claiming in February that the EU was "formed to screw up the United States". He has also been critical of the U.S. goods trade deficit with EU, which amounted in 2024 to $235 billion. The EU has generally accepted the deal, citing it as the lesser evil. Trump had planned to impose a 30% tariff on nearly all EU-imported goods. Two-thirds of industrial goods are already free from tariffs. According to the economic think tank Bruegel, the average EU tariff for U.S. products is 1.35%. However, cars are subject to a 10% EU tax. In addition to concessions for farm products, the EU's proposals include zero tariffs on potato, reduced rates for tomato and quotas that have zero or low tariffs. The list excludes beef, chicken, rice, and ethanol. "We're protecting our defensive interest there." "We are protecting our defensive interests there." The EU's proposed legislative will have to be approved both by the European parliament and a majority of EU members. This could take several weeks. The deal's supporters acknowledge that the U.S. tariffs are still high, but they point out that the European Union has a special arrangement whereby existing U.S. duty rates, like 2.5% for automobiles and up to 20 % for cheeses, will not be added to the 15% general rate. Steel, aluminum and copper tariffs are still at 50%. Digital services are barely mentioned in the agreement. Trump threatened on Monday to impose additional tariffs against all countries that have digital taxes or regulations. Reporting by Philip Blenkinsop, Editing by Helen Popper, Susan Fenton and Susan Fenton
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Nippon Steel invests $11 billion in U.S. steel profit through tech transfer
Nippon Steel, the Japanese steel company, plans to increase profits at U.S. Steel by investing $11 billion and transferring its advanced technology and operational techniques to expand capacity. The $14.9 billion acquisition of U.S. Steel by Nippon Steel was completed in June. This 18-month-long process had been slowed down due to the political changes during the transition from the Biden to Trump administrations. The investment and transfer of knowledge, which will run through fiscal 2028 and include a period up to 2026, are expected to increase U.S. Steel’s annual profit contribution from 80 billion yen to 250 billion in fiscal 2028. This is compared to an estimated 150 billion yen for 2026, and 150 billion yen this year. Takahiro Mori, vice chairman of Nippon Steel, said on Thursday that the real effects of the investment would appear after 2028. He added that profits could grow even beyond 250 billion yen. The refurbishment of No. 14 blast furnace at Gary Works in Indiana, as well as new electromagnetic steel sheet lines and other capacity expansions are planned. The Gary Works in Indiana has a 14-blast furnace, as well as new electromagnetic steel sheets lines and capacity expansions. Mori stated that "we are looking to build new mills from greenfield", citing options such as 3 million metric ton electric arc furnaces similar to Big River 2 in Arkansas. Mori, now the Chairman of U.S. Steel and the lead negotiator in the deal, said that the investment would increase U.S. Steel’s domestic crude-steel capacity from 17 million to 20 million tons. Nippon Steel now has a global capacity of 86 million tonnes per year, which is closer to the 100 million ton target it set for itself. Nippon Steel will announce a detailed investment plan later this year, as part of its new medium-term strategy. Nippon Steel announced in July that it would raise 500 Billion Yen via a subordinated credit to partially pay off a 2 Trillion Yen bridge loan which funded the deal. Mori stated that the steelmaker has also flexibility in hybrid financing, and may consider corporate bonds and convertible bonds. He said that he would assess the optimal timing and interest rates as well as whether dollar or yen denominations were preferable for the best financing strategy. Equity financing was also possible but within certain limits in order to avoid shareholder diluting. Mori stated that U.S. Steel will fund the initial $11 billion investment, and Nippon Steel will step in if funds are insufficient. He stated that U.S. Steel was assessing the impact from an explosion in August at its Clairton facility in Pennsylvania. This could reduce, but not significantly, Nippon Steel's expected profit contribution of 80 billion yen for the current fiscal year.
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StatsCan survey shows that Canada's wheat and barley production is down but canola, oats, and canola are up.
Statistics Canada released a report on Thursday that showed Canada's crops were in a wide range of conditions at the end of July. However, total production was close to expectations. Analysts said that this range and the heavy rainfall in August make it less likely than previous years to be able to predict production based on data from late July. After the report's release, Seges Markets analyst Lawrence Klusa said: "It was such a variable year." It's very hard to tell if the late rains have helped or hurt the crop. Model-based assessment predicts a canola harvest of 19,9 million metric tonnes, an all wheat crop of 35,6 million tons and a spring grain crop of 25,6 million tons. Statistics Canada estimates that wheat production will fall by 1.1% in Canada in 2025, compared to the production of 2024. Canola production, however, is expected to increase by 3.6%. This projection was based on satellite data and agroclimatic information. Barley production fell 1.9% in 2025. The durum production, which is the wheat used for pasta, was estimated at 6.1 millions tonnes. After the report, the ICE canola market fell. Traders believed that the actual size of the crop was a million tonnes larger than originally thought due to the excellent August weather. They expect Statistics Canada to revise this total upward. Tony Tryhuk, a trader at RBC Dominion Securities, said that "no one perceived the report as friendly." People who received moisture for late-seeded plants have really, truly benefited. StatsCan reported that crop conditions in the Prairies were varied, with some regions receiving less than average precipitation while others experienced prolonged temperatures above normal. According to the agency, prairie conditions were much lower than usual or much higher than average at the end July. Analysts and farmers said that August was a near-ideal month for canola pod filling, with cooler temperatures and frequent rain showers across the region. A significant area was affected by extreme heat and dryness in spring and early summer and lost much of its yield potential. In other parts of Canada, crop conditions were above average. In Ontario, rainfall was below-average while in Quebec it was above average. Model-based yields are used to calculate production estimates for Quebec and Ontario. Estimates of Prince Edward Island (PEI), Nova Scotia, New Brunswick, and British Columbia were all carried forward from July estimates.
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US stock indexes are mostly higher, but Nvidia shares fall; dollar weakens
The major U.S. indexes rose slightly on Thursday, despite Nvidia's shares falling amid uncertainty about its China business. Meanwhile, the dollar fell against the yen and euro as traders awaited a reduction in U.S. rates. Nvidia shares fell about 1.1% after the market closed on Wednesday. The trade war between the United States and China clouded the better-than expected revenue forecast released by the chip designer. Nvidia's forecast was better than Wall Street expected but disappointed investors used to big results. The Dow, S&P 500, and Nasdaq all rose slightly, while an index of semiconductor stocks increased by 0.4%. Peter Tuz of Chase Investment Counsel, Charlottesville, Virginia, stated that investors were mostly relieved by Nvidia’s results and guidance. He said that while there is some confusion about what will happen in China, Nvidia has "not said anything that points to a significant sloweddown" so this removed a major overhang or risk. Nvidia CEO Jensen Huang dismissed concerns about the end of a spending boom for AI chips, and said that opportunities would expand over five years. Tuz says that economic data is another positive for stocks. Tuz said that the day's data revealed the U.S. economic growth was faster than originally thought in the second-quarter, driven in part by business investments in intellectual property like AI. The Dow Jones Industrial Average increased 5.97 points or 0.01% to 45,571.20. The S&P 500 rose 5.11 points or 0.08% to 6,486.51 while the Nasdaq Composite grew 57.08 or 0.26% to 21,646.27. The MSCI index of global stocks rose by 1.53 points or 0.16% to 954.57. The STOXX 600 Index fell by 0.16%. Following Francois Bayrou’s gamble, European markets are likely to remain focused on France’s fiscal trajectory following his deeply unpopular plan to reduce debt via a vote of confidence next month. The euro rose 0.29% to $1.1671. The dollar fell 0.26% against the Japanese yen to 147. Investors want to know more about the prospects of interest rate reductions ahead of Federal Reserve's policy meeting on September 16-17. John Williams, the New York Fed's bank president, said on Wednesday that it was likely interest rates would fall at some stage. However policymakers must wait to see how the economy develops in the coming months before deciding if a rate cut is appropriate at the September meeting. According to CME's FedWatch, traders are currently pricing in 87% of the odds that a quarter point rate cut will occur in September. They see 137 basis point cuts in total by the end 2026. This week, the Fed will also be reporting on Friday about personal consumption expenditures in the United States - its preferred inflation indicator. Investors are still digesting the news about Federal Reserve Governor Lisa Cook. Cook filed a suit on Thursday, claiming that U.S. president Donald Trump does not have the power to remove Lisa Cook from her office. This could set up a legal fight that could reset norms long established for the independence of the U.S. Central Bank. As traders considered the prospects of Fed rate cuts, interest rate-sensitive yields on two-year bonds rose, but remained near a four-month-low. The yield on the two-year bond was up by 1.4 basis points to 3.637%. The benchmark 10-year bond fell 0.8 basis to 4.23%. U.S. crude dropped 0.89%, to $63.59 per barrel. Brent was down to $67.64 a barrel on the same day.
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Report: Brazil's main sugar-producing state could face extreme heat, which would reduce cane yields
EarthDaily reported on Thursday that Brazil's Sao Paulo State, which produces half of Brazil's sugarcane production, will likely face extreme heat and dry conditions next week, resulting in a further reduction of crop yields. The satellite-based agricultural monitor firm warned in advance of the increased fire risk in canefields due to the dry conditions. EarthDaily reported that "Climate model predictions point to an upcoming heat wave with temperatures averaging around 39degC (102/degF), which would likely worsen losses in sugarcane production and increase the risk of fires." This warning comes at a time when Brazil's sugar belt in the center and south is grappling with lower agricultural productivity for the 2025/26 harvest due to adverse weather conditions during planting in 2024. According to the Sugarcane Technology Center, through July, the productivity of the 2025/26 cycle was 9.8% lower than the previous cycle, at 79.8 tons per hectare. Total Recoverable Sugar, a key quality measure, fell 3% to 125.2 kilograms per ton. EarthDaily's data showed that the vegetation index in certain areas had also deteriorated. EarthDaily's crop analyst Felippe Reis said that the combination of intense heat, and in particular drought, is negatively impacting plant development. EarthDaily reported that both the ECMWF climate model and the GFS forecast temperatures above average across the majority of Brazil within the next few months. EarthDaily reported that in other parts of central-south including Parana, Mato Grosso do Sul and Mato Grosso do Sul the rain throughout August interrupted sugarcane harvesting for several days. Reis stated that the month would likely end with at the very least three days' worth of harvesting activity being halted in the area, which could reduce the amount of cane available to be crushed and affect the rate of sugar and alcohol production. Reporting by Roberto Samora; Writing by Oliver Griffin, Editing by David Gregorio
Trump boosts coal to feed data centers that are energy hungry
Executive Orders to Boost the Coal Industry
Trump Administration pulls back plants from retirement
The United States has ceased its efforts to reduce coal consumption
By Carey L. Biron
Then, the Trump administration issued an order to keep the plant operating, citing a regional energy crisis caused, in part by the retirements of coal and natural gas power plants.
Trump issued executive orders to boost the coal industry. These were in response to the rapidly increasing electricity demand for new data centres that run artificial intelligence tools.
The rebound is a resupply of coal for the JH Campbell plant, located in West Olive, Michigan. Its coal pile once covered three football fields.
It was just a tiny dollop, said Jan O'Connell. She is a senior energy issue organizer at the Sierra Club Michigan Chapter.
Trump has made a decision to stop decades of efforts to wean America off coal. The move also includes a halt to programs that help communities in coal-producing areas transition to alternative industries.
The Trump administration mandated, shortly after the Campbell order was issued, that a Philadelphia gas plant which had been scheduled to close continue operating. Both orders were 90-day emergencies that could be renewed.
According to Sierra Club's tracking, in the last two decades, more than 75 percent of U.S. power plants have retired coal or plan to retire them by 2030.
O'Connell expressed concern that the Campbell Plant order could create a precedent.
She said: "We fear it will be a domino-effect, that they'll go from coal plants to coal plants and possibly erase their retirement dates."
Ben Dietderich, Department of Energy Press Secretary, explained that the administration views the move as a way to ensure the country has enough energy.
Dietderich stated that "American grid operators have warned for years about the dangers of decommissioning power sources like coal plants, which would compromise our grid system's reliability."
This administration is committed in ensuring Americans can access reliable, affordable and secure energy, independent of whether the sun is shining or the wind is blowing.
According to Clean Energy States Alliance - a coalition of energy agencies from states - Illinois, Georgia and West Virginia are among the states that have delayed retirement of coal plants. Other states may follow suit.
LONG DECLINE
According to the International Energy Agency (IEA), data center energy consumption is expected to increase by 12% between 2017 and 2024, and double by 2030. More than half of this energy demand will come from AI data centres.
Trump declared U.S. dominance in global AI a priority for his administration. He cited the technology, and its energy requirements as a national security issue.
Experts say that it's unclear how much the new orders can stop the decline of the coal industry.
Daniel Bresette is the president of Environmental and Energy Study Institute in Washington, which is a Washington-based think tank. In 2014, coal produced 39 percent of U.S. electricty. By last year, that figure had dropped to only 15 percent.
He said that the Trump Administration orders, combined with the rapid expansion of data centers which are energy-hungry, could help boost the industry.
He said, "We are just unsure how much."
In an email, White House Assistant Press Secretary Liz Huston stated that Trump's actions "fully unleash American energy dominance" and are "driving down costs and fuelling economic prosper".
The coal industry claims that the move has brightened their prospects.
Emily Arthun is the chief executive officer of the American Coal Council. She said that the industry group was "very optimistic" about the economic impact of the executive order, which has "already set the stage for regulatory changes."
She said that coal is essential to meet the needs of AI and data centers.
The response of major tech companies to a greater role for coal as a power source in their data centers is unclear.
According to the Clean Energy Buyers Association (an industry group which includes Google, Meta, and Microsoft), many major tech companies are working towards net zero emissions and sustainability. The demand for clean energy, such as solar, will increase to 275 gigawatts in 2035.
This would be enough to power over 200 million American average homes.
Many industry groups and large companies refused to comment on the possibility of using coal-fired power to power their data centers or didn't respond to questions.
'FALSE HOPE'
Environmental experts have warned that federal efforts to boost the coal industry overlook the communities who are trying to get beyond the declining industry.
Jason Walsh, Executive Director of BlueGreen Alliance (labor and environmental groups) said, "Coal communities require investment and support as markets shift to cleaner and cheaper forms of energy."
"What Trump gives them is denial and false hope, as well as... more pollution."
He said that the budget negotiations concluded by Congress this month have gutted tax credits for clean energy. This includes a bonus to encourage investments in "energy communities" as well as green banks for investing in sustainable economic strategies in coal communities.
Walsh stated that "people in coal communities are now aware there is no turning back."
(source: Reuters)