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Bessent: US won't hit China over Russian oil with tariffs unless Europe first goes.
U.S. Treasury secretary Scott Bessent stated on Monday that the Trump administration will not impose any additional tariffs on Chinese products to stop China's purchase of Russian oil, unless European countries impose steep duties on China and India. Bessent and Bloomberg agreed in a joint-interview that European countries should play a greater role in cutting Russian oil revenue and ending its war in Ukraine. Bessent replied, "We expect Europeans to contribute now and we cannot move forward without them." Bessent was asked if the U.S. will impose Russian oil tariffs on Chinese products after President Donald Trump imposed an additional 25% duty on Indian imports. Bessent stated that he had pointed out to Chinese officials during discussions on TikTok and trade in Madrid that the U.S. has imposed tariffs against Indian goods. Trump also urged European countries to impose 50% to 100% tariffs on China and India in order to stop Russian oil revenues. He said that the Chinese response was that the purchase of oil is a "sovereign issue." Bessent criticised the purchases of Russian crude oil by certain European countries. Other countries buy petroleum products refined from Russian crude in India at discounted prices, he said, and that they were financing a conflict on their own soil. Bessent stated that "I guarantee that the war will be over within 60 to 90 days if Europe imposes substantial secondary tariffs against the buyers of Russian Oil" as it would eliminate Moscow's primary revenue source. The Treasury chief stated that the tariffs placed on Indian goods due to Russian oil purchases have brought about "substantial" progress in negotiations with India. New Delhi and Washington are holding another round of discussions with the U.S. Tuesday, amid a recent thawing in rhetoric between Trump's and Indian Prime Minster Narendra Modi. Bessent stated that the U.S. was willing to work with European nations to consider harsher sanctions against Russian entities, such as oil majors like Rosneft or Lukoil. He also said that steps would be taken to prepare for a greater use of Russian assets which have been frozen after Moscow's invasion of Ukraine in 2022. He said that this could be done by first seizing small amounts of the $300 billion frozen assets, or by placing them into a special-purpose vehicle which could serve as collateral to a loan for Ukraine. (Reporting and editing by Lisa Shumaker, Daniel Wallis, and David Lawder)
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Blue Water has been denied the right to extend Citgo's parent sale hearing by a US judge
A Delaware judge denied a request by Blue Water Acquisition Corp, a special purpose acquisition firm, to extend the final sale hearing at a U.S. court ordered auction of Citgo Petroleum’s parent company. Blue Water, a Venezuelan refiner owned by Blue Water, submitted last week a bid worth $10 billion. This included a $3.2-billion settlement proposal for holders of Venezuelan bonds that had defaulted. The company requested that the hearing be extended to allow its part to be taken into consideration by the court. Blue Water representatives informed the court that funding for the offer was not yet committed. The offer came after the deadlines to submit and improve bids. "Perhaps (Blue Water) could spend this week to see if they can commit the financing," Judge Leonard Stark stated, adding that later he may request that an auction officer engage the company about its bid. The company has not responded to any requests for comment. Robert Pincus, a court officer, selected last month a $5.9 Billion An affiliate of hedge fund Elliott Investment Management was named the frontrunner in the auction. Judge Stark stated that he will make a decision about the auction winner following the hearing. (Reporting and editing by Nathan Crooks, Nick Zieminski, and Marianna Pararaga)
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WTO ratifies agreement to reduce billions of dollars in overfishing subsidy
The World Trade Organization announced that a landmark agreement was signed on Monday to reduce billions of dollars worth of subsidies contributing to the overfishing. This is a positive step for global fish stock recovery. The WTO's first agreement since 2017 was signed after years of infighting and stalled discussions. More recently, the U.S. tariff surge has left many critics wondering if the Geneva-based organization still had a future. A WTO spokesperson stated that the formal ratification of the agreement by Brazil, Kenya Tonga, and Vietnam on January 14 meant the deal was now supported by two-thirds of the members. The original agreement, which took place in 2022, had been reached. The government is now forbidden from subsidizing overfished stock and fishing in international waters outside their jurisdiction. Poorer countries will have access to a fund that helps ease their transition into the agreement. Megan Jungwiwattanaporn, from the Pew Charitable Trusts, said: "Fish stock around the world have a chance of recovering. This will benefit local fishermen who depend on an ocean that is healthy." A 2019 Marine Policy study showed that governments around the globe pay $35.4 billion per year to their fishing fleets. This includes fuel subsidies, which allow them to fish on distant oceans. The top five subventioners were listed as China, EU, United States, South Korea, and Japan, though not all are covered by the WTO agreement. The negotiations on new fishing rules that cover divisive topics excluded from the original deal have failed, as India and many other developing economies are seeking carve-outs they see as impossible. The first part, which came into effect on Monday after more than 20 years' negotiations, will expire four years from now if no more comprehensive rules can be agreed. In an interview conducted earlier this month, Director-General Ngozi Okonjo Iweala expressed optimism that the organization could either end the talks or find ways to prevent the first agreement from expiring. (Reporting and editing by Andrew Heavens, Emma Farge)
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Sources say that China's former climate ambassador will meet with EU in order to revive the flailing UN pact
Three sources have confirmed that China's veteran climate envoy who secured two important climate agreements with the United States will meet the EU's top official for green transition on Tuesday in order to revive the floundering international climate talks ahead of the COP30 Summit in Brazil. Xie zhenhua, a former climate envoy who retired after the COP28 talks in Dubai, in late 2023, is scheduled to visit Brussels on 16 September and meet Teresa Ribera, the executive vice-president for the European Commission for a Clean, Just, and Competive Transition. He will encourage the EU to announce ambitious climate goals, and coordinate diplomatic efforts in advance of a preliminary climate summit at U.N. headquarters scheduled for September 24. Two sources said that the purpose of the meeting was to boost the COP30 Climate Summit, which will start in Belem in Brazil in November. Due to the lack of hotel rooms and the high cost, there could be a low turnout at the summit. The United States has also withdrawn from the negotiations process. Three sources confirmed that Xie would meet Ribera who he's known for a very long time. However, they couldn't confirm if the meeting was official or if it would result in a joint agreement or statement. Two sources confirmed that the current climate envoy Liu Zhenmin will not attend the meeting, but the ecology minister Huang Runqiu would. In the run-up to Belem, the U.N. wants to exert pressure on major economies such as China and Europe. Last week It urged all countries In September, the United States will set up more ambitious climate plans to achieve goals previously pledged in 2015 under the Paris Agreement. These are known as Nationally Determined Contributions. The EU is struggling to reach a consensus on its proposed plan. This month, countries such as France and Poland have called for a postponement of the approval of 2040's goal. Two sources have confirmed that China will announce its new NDC on September 24. The U.S., China and their U.S. counterparts John Kerry & Todd Stern had achieved great victories in climate diplomacy before President Donald Trump. However, the U.S. - China relationship is now defined by national security competition and trade tension. (Reporting and editing by Nia William, Kate Abnett in Brussels, Valerie Volcovici & Liz Lee; Additional reporting by Kate Abnett)
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Kazakh miner Solidcore expects a gold rally to offset production decline
Solidcore Resources, a Kazakh gold miner, expects that high gold prices will offset a large part of the production decline due to sanctions related disruptions in concentrate shipments into Russia. The gold price has risen by about 40% in the past year. It reached a record-high of $3,673.95 per ounce, last week, on expectations that the U.S. will soon cut interest rates. Solidcore, previously Polymetal International sold its Russian assets after the U.S. imposed sanctions on its business in Russia. However, it continues to send gold concentrator to Russia to be processed with U.S. approval. The company's profit nearly doubled in 2024 due to high gold prices, but sanctions against concentrate deliveries to Russia caused a 58% decline in the first six months of the year. Vitaly Nesis, CEO of the company, said that the situation had improved significantly in July and August. The company also plans to reduce its inventory in the first quarter 2026. The gold price in 2025 will offset the downward revision of 11% to the production forecast. He said that the gold price rise this year is not sustainable. He said, "I believe there will be a decline." "I wouldn’t be surprised (if the price of gold drops to $3.200 by the year's end). Solidcore, the second largest gold miner of Kazakhstan, has postponed previously discussed acquisitions in Central Asia. These were not likely to be completed this year. "Both deals are not in good shape, if they're not totally off." The gold price has risen, as have sellers' expectations. We are not ready to raise our offer significantly yet. Solidcore will continue to process gold concentrate in Russia under an agreement toll at the Amursk Pressure Oxidation Plant until Solidcore launches its own Ertis plant scheduled for 2028. Nesis stated that the company expected to reach an agreement in the first quarter 2026 with international institutions to secure $500-$600m in project funding for the Ertis facility. The deal could be finalized by the second quarter. (Editing by Gleb Brnski and Jan Harvey).
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Gold reaches record highs as yields and dollar ease. Focus on Fed meeting
The price of gold rose to a record high on Monday. This was largely due to a weaker dollar and lower Treasury yields. Investors were positioning themselves ahead of an important Federal Reserve meeting that will take place this week, which could set the tone of the rest of the calendar year. As of 1151 am EDT (1551 GMT), spot gold was up by 0.9%, at $3,674.09 an ounce, after reaching a session high of $3674.63 in the earlier part of the session. Bullion rose about 1.6% in the past week. U.S. Gold Futures for December Delivery were up 0.7% to $3,712.70. The dollar index dropped to its lowest level in a week, which made gold more appealing for holders of other currencies, while the yield on the benchmark 10-year Treasury note edged down. According to CME's FedWatch, markets are almost certain that the Fed will announce a 25 basis-point rate reduction on Wednesday. This is the first cut since December. However, some investors still hope for a 50-basis point move. Peter Grant, senior metals analyst at Zaner Metals and vice president, said that the expectation of a rate cut of 25 basis points is largely baked in at this stage. He added that one or two rate cuts could occur before the end year. In a low-interest rate environment, non-yielding gold bullion is often considered to be a safe haven asset in times of uncertainty. Grant said that the $3,700 level is the next important target. Other levels to watch in the near term include $3,730, $3,743, and $3,730. The Fed is under unusual pressure as a result of a leadership dispute, and Donald Trump's push for more influence over policy. The Senate also opened the door for Trump's economist Stephen Miran, to join the committee that sets rates in time to vote Wednesday. The Fed is on track to reduce rates, as recent data shows that the U.S. consumer price index rose in August at its fastest rate in seven months. Other than that, silver spot was up by 1% to $42.59 an ounce. Platinum gained 0.5%, to $1.397.80, and palladium fell 1.4%, to $1.181.09. (Reporting from Anushree mukherjee in Bengaluru and Sherin Elizabeth varghese). Emelia Sithole Matarise and Mark Potter edited the story.
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India's highest court-appointed panel clears Ambani's son's Wildlife Centre of wrongdoing
The Supreme Court of India announced on Monday that a wildlife rescue center run by a philanthropic branch of Mukesh Ambani’s group was cleared of accusations of animal mistreatment and illegal acquisition. It cited findings of a committee appointed by the court. In August, India’s top court appointed an investigation team to investigate complaints by non-profits and wildlife groups alleging mistreatment of animals at Vantara. Questions were raised about how the animals had been brought to the centre. The court ruled that the evidence does not support the claims of abuse or illegal acquisition. Vantara, a project led by Anant Ambani - the son of the billionaire - is located in the western Gujarat state. It's a major undertaking for the Reliance Foundation as well as the Ambani Family. The facility, which claims to house more than 150,000 animals of more than 2,000 different species, says its 998-acre 404-hectare elephant welfare trust is world's largest facility for rescued eagles. The Supreme Court stated on Monday that the SIT's investigation had covered allegations related animal acquisition, smuggling and welfare, conservation, breeding climate suitability, financial misconduct but found no violations of wildlife rules. The SIT report and the order of the Supreme Court have shown that doubts and accusations raised against Vantara’s animal welfare mission are without basis. Vantara released a statement. Nishit Navin, Bengaluru (Reporting; Pooja Deai, editing)
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Goldman T. Rowe will sell co-branded alternatives investments to wealthy clients by the end of the year
Goldman Sachs, T. Rowe Price and other asset managers, who announced their partnership this month, will offer new alternative investments to wealthy clients before the end of the calendar year. This plan follows an executive order issued by Donald Trump that broadened the access to 401(k), retirement accounts for alternative investments, such as private equity, private credit and others. This move could allow private asset managers to access about $9 trillion in 401(k), or retirement, accounts. Goldman and T. Rowe have recently signed a deal where Goldman becomes a shareholder of the asset manager. The stake could be up to $1 billion. Both companies will offer retail investors products in partnership. T. Rowe is responsible for managing $1.6 trillion of which approximately $1 trillion is related to retirement. T. Rowe CEO Rob Sharps said in an interview that the alternatives would be tailored for different types of customers at the end the year and through the first quarter. Investors like funds that have a specific retirement date. Portfolios will have a small amount invested in alternative assets, and the remainder in liquid and public investments. As the investor approaches retirement, the proportion of alternative assets may decrease. Alternative portfolios combining private credit and equity or equity funds combining private equity with stocks will be available to wealthy clients. These products will initially be available to Goldman T. Rowe and Goldman Sachs clients, but they may be made more widely available. Marc Nachmann is Goldman's director of wealth management and asset management. Analysts warned of risks like lack of transparency and liquidity after the approval of alternative investment in retirement funds. Sharps stated that "new structures can provide an element of liquidity and pricing on a daily basis to give individual investors more comfort." Managers will allocate a limited proportion of funds to alternative investments, with the goal of maximizing returns. Nachmann stated that "it's still early days. Today, investors in alternative investments are mostly large institutions such as endowments and high-net worth individuals." Sharps stated that alternative investments could reach 10% to 20% in retirement accounts over the long-term. Sharps and Goldman's President John Waldron began the initial talks for the deal a year before, talking about convergence in markets and the growth of private assets. Sharps stated that the companies have had a long-standing relationship and that substantive talks about the deal began early this summer. (Reporting and editing by Lananh Nguyen, Sharon Singleton and Lananh Nguyen)
Solar strikes above its weight in powering US energy transition: Maguire
Solar farms produced less than 6% of the electrical power produced by energies in the United States in 2023, however that annual share greatly downplays the vital function that solar plays in making it possible for power firms to accelerate energy transition efforts.
On a day-to-day basis, solar plants can have such disruptive influence on system electricity streams that utilities have actually been forced to establish capabilities to rapidly cut output from other sources and shop surplus power for later usage.
In turn, that resulting dexterity and emerging ingenuity throughout the energy sector is assisting to accelerate international energy transition efforts by requiring power systems to more effectively accommodate big swings in clean power output.
With materials of all forms of renewable energy set to quickly grow, energies that find out to maximise the volume of solar energy within generation systems today will be best put to assist drive the additional evolution of energy systems in the years ahead.
CLEANER, BUT MORE VOLATILE
No other clean source of power comes close to creating both the opportunities and difficulties that rapidly expanding materials of solar energy require.
Solar's overall share of U.S. power output may currently be little, however it is growing quick, with output expanding by 155%. in between 2018 and 2023, according to the U.S. Energy Details. Administration (EIA.)
That growth rate compares to a 56% growth in wind power. and a 22.4% swell in natural gas-fired output over the exact same. period.
To accommodate growing renewables materials and make great on. dedications to lower power sector emissions, U.S. energies. lowered coal-fired power generation by 41% from 2018 to 2023,. which cut coal's share of the power mix from around 30% to 16%.
But by replacing such a substantial piece of baseload power. from coal with growing quantities of intermittent renewable. power from solar farms, the U.S. power system has become more. volatile in addition to more tidy over the past 5 years.
GIVE WAY!
California's power system best exhibits the volatility. that originates from rapid boosts in solar generation.
As the largest solar power manufacturer in the U.S., California. has actually enhanced solar power output by 72% from 2018 to 2023, and. depends on solar for around 28% of electricity materials,. according to energy think tank Coal.
The state likewise represents around 25% of nationwide. electrical energy supplies produced from solar.
But it's an enduring difficulty to turn the state's abundant. sunlight into useable electrical energy without distorting power. markets.
As more and more solar plants were connected to California's. grid over the past years, power prices in the state came under. increasing pressure during the middle of the day when solar. output peaks.
A compounding issue is that the peak solar production. period overlaps with what is traditionally the lowest period for. system need, so power companies have been required to lower power. rates in order to balance system needs up until solar output. declines later on in the day.
The resulting 'Duck Curve' shape of power rates became a. well known phenomenon over the last couple of years, with the. unexpected distortion to market dynamics triggered by surplus solar. power commonly lampooned in 2023 by opponents of the energy. transition.
The volume of California's solar output has actually increased. further so far in 2024, with solar electricity generation. through May 23 running 27% ahead of the very same duration in 2023,. according to LSEG information.
The unequal circulation of this output causes daily. contortions to the state's power generation mix, with solar. power accounting for 0% of power generation before dawn to. over 70% throughout the sunniest times of day.
And California's power prices continue to come under extreme. pressure during peak solar production hours, routinely turning. unfavorable for spells as the marketplace pricing mechanism tries to. lure demand and discourage production from other sources.
BATTERY BUTTRESS
To alleviate the effect of the system imbalance brought on by. runaway solar output, California's utilities have actually deployed. networks of utility-scale batteries that can soak up surplus. power during peak solar production periods, to be discharged. when the sun goes down.
The battery network is still being built out, but currently. accounts for around 20% of California's system needs during the. peak need period simply after solar output stops and when people. returning from work crank up home electricity demand.
The batteries also lower the need for power imports by. California during those peak need periods, which minimizes. regional power pressure and helps California become less reliant. on neighbouring states for power materials.
California's battery system likewise functions as a learning tool for. other power networks who are also dealing with the effect of. too much solar supply, too soon.
And in addition to broader usage of wise energy meters - which. encourage customers to increase power usage when materials. are most abundant - all U.S. energies are discovering crucial ways to. accommodate quick growth in solar output and set themselves up. for further energy transition progress.
<< The viewpoints expressed here are those of the author, a. columnist .>
(source: Reuters)