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Campaign group says hybrid cars do not meet EU CO2 target.
A report released by the transport research and campaigning group T&E on Wednesday said that hybrid cars emit far more carbon than their official ratings suggest. They should not be considered low-emissions vehicles in order to meet European Union goals. European auto executives will air their complaints regarding EU CO2 emission targets during a Friday meeting with European Commission president Ursula von der Leyen to discuss the future of the EU industry. In a letter sent two weeks ago, two of the main EU automobile associations stated that plug-in electric cars would play an important role in the future and asked Brussels to not tighten regulations on them. T&E stated that data from the European Environmental Agency revealed real-world CO2 emissions of more than 130 grams per kilometre. This is equivalent to a midsize petrol car, and almost five times higher than the official values. William Todts, T&E's executive director, said that plug-in hybrids were marketed as "low-emission" vehicles. However, when compared to petrol-powered cars, the performance is very similar. T&E stated that the main reason for the discrepancy in ratings between the real world and the official ones was due to an overly positive assessment of the percentage of vehicles operated solely by electricity, also known as the utility factors. T&E stated that the gap between official and real emissions will narrow in 2025/2026, 2027/2028. However, real emissions will still be 18% higher than official figures. T&E stated that the changes would persuade the automakers to increase battery range in hybrids, making them more electric. According to the EU automaker association ACEA, in 2024, new electric vehicle sales in Europe will drop to 13.6%, but plug-in hybrids and other hybrids will make up 38% of all vehicles sold. Reporting by Philip Blenkinsop
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Iran and UN nuclear watchdog come to an agreement on cooperation
Iran and UN nuclear watchdog IAEA reached an agreement about the resumed cooperation, Iranian Foreign Ministry Abbas Araqchi stated in a Tuesday statement. He warned that the implementation of UN sanctions against Iran would mean the termination of the "practical measures" detailed in the deal. Since the United States and Israel bombarded Iran's nuclear facilities in June, the International Atomic Energy Agency (IAEA) has been denied access to its key nuclear installations. Iran adopted a law following the attacks that suspended cooperation with IAEA, and said any inspections would have to be approved by the Supreme National Security Council. "I conducted the final round to reach an agreement on how to implement Iran’s safeguards obligations, in light of illegal actions taken against Iran’s nuclear facilities. We were successful in achieving this." In a statement released by the state media, Araqchi stated: In a Tuesday post on X, U.N. Nuclear Watchdog Chief Rafael Grossi called the agreement "an important step towards the right direction". Grossi wrote in his blog: "In Cairo, we agreed with Iran's foreign minister... on practical modalities for resuming inspection activities in Iran". The Iranian Foreign Minister said that the agreement signed on Tuesday in Cairo fully complies to the law passed by Iran’s parliament following the US and Israeli attack. Araqchi stated that the agreement creates a practical method of cooperation which reflects Iran's "exceptional circumstances in security" as well as the technical requirements of the agency. The talks take place in the context of Europe's three top powers initiating a 30-day process to reimpose sanctions against Iran on August 28. The restrictions were lifted as part of a 2015 deal between Iran, major powers and the United States. However, it unraveled after President Donald Trump withdrew the United States from that agreement in 2018. The E3 (France, Britain, and Germany) have stated that they will reimpose sanctions in the "snapback process" unless the IAEA resumes full inspections of Iran and Tehran accounts for the large stock of near weapons-grade uranium, and resumes talks with the United States. "I want to emphasize that if Iran is attacked, and the UN Security Council Resolutions are reinstated, Iran will regard these steps as complete. ", Araqchi said. (Reporting and editing by Elwely Elwelly, Francois Murphy and Chris Reese; Alistair Bell and Chris Reese)
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MAHA Report on US Children's Health Targets Food and Drug Marketing
In its second report, released on Tuesday, the Commission "Make America Health Again" said that it will tackle what is perceived as an epidemic among American children. It has called for changes, such as full-fat dairy in cafeterias, and to limit marketing of drugs and food. The commission was established by Donald Trump via an executive order, and is led by Robert F. Kennedy Jr. a longtime anti-vaccine activist. It builds on the findings of a commission report from May. This report linked the rising rates of childhood diabetes, obesity, autism and ADHD to processed foods, overprescriptions of medications, and vaccinations. The report also alarms food industry groups by pointing out pesticides such as glyphosate - a key ingredient in weedkillers that has been the subject of thousands lawsuits - as a possible health risk. Sources first received drafts of the latest strategy document in early August. It calls for changes to school meals, including full-fat dairy products, and suggests investigating vaccines and prescription drug safety. The report does not recommend any changes to the U.S. approval or regulatory process for agrochemicals, which is a major demand from some MAHA activists. The report states that the Environmental Protection Agency (EPA) will instead work to increase public confidence in their pesticide review processes and reform their agrochemical approval processes to ensure "timely availability" of these chemicals to farmers. Last month, health advocates and other experts stated that the draft recommendations lack scientific basis and do not address the true causes of poor child health. The report calls on increased federal oversight and enforcement for direct-to consumer prescription drug advertising. It places a particular focus on violations that involve children, social media and telehealth. In order to combat misleading marketing, the report proposes to explore new guidelines that limit direct advertising to children of unhealthy food. The Department of Health and Human Services and Department of Agriculture should work together with restaurants to raise awareness and educate children about healthy foods that are age-appropriate. Peter Lurie of the Center for Science in the Public Interest told the media ahead of the publication of the report that "the topics (Kennedy), wishes to focus on are not the main causes of chronic diseases and many are missing (tobacco reduction, alcohol reduction, sodium reduction, sugar reduction)." The contents of the previous report had also been criticized by industry groups. After the release of the MAHA Commission's first report, more than 250 groups representing farmers and ranchers as well as agrochemical firms called for greater participation in the activities of the Commission. In response, the White House held meetings with farm and food groups during the summer. Kennedy stated during a Senate Hearing last week that HHS met with 140 agricultural interests in the last three months. He said, "We consult every stakeholder within the farming community on everything we do." Focus on Nutrition, Not Regulation The report suggests that some meat-processing plants and farms should loosen their water discharge standards and other pollution standards. The report includes a number of policy recommendations, including the creation of a National Institutes of Health Chronic Disease Task Force and a government-defined definition of "ultraprocessed foods." It also proposes restrictions on artificial food dyes that, according to a May report, were potentially associated with autism. However, this was not backed up by any evidence. Kennedy has in the past promoted debunked claims that vaccines cause autism. This area is a controversial one. The report recommended that the EPA work with Agriculture Department in order to promote precision pesticide applications with the goal of reducing the overall use of pesticides. However, it did not recommend any regulatory action. In the report, it was recommended that the EPA, USDA and NIH collaborate to develop a framework for studying cumulative chemical exposures. This includes pesticides. The report recommends using advanced methods that use human-relevant models in research. Pesticides have exposed a growing divide between MAHA activists, and Republican politicians who are closely linked to the agriculture industry. In August, hundreds sent a protest letter to the White House against a proposal by Congress that would shield manufacturers of pesticides and "forever chemicals" from lawsuits. Reporting by Ahmed Aboulenein in Washington and Leah Douglas, Renee Hickman and Waylon Cunningham from Chicago and New York. Editing by Caroline Humer & Bill Berkrot.
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Bolsonaro is called the leader of a coup attempt by Brazilian Supreme Court Justice
Brazilian As he cast his first vote in the last phase of Jair Bolsonaro's trial, Supreme Court Justice Alexandre de Moraes labelled the former president as the leader of a group of criminals that attempted to overturn 2022 elections. Bolsonaro will be sentenced within a few days for orchestrating a coup attempt to stay in power following his defeat by Luiz Inacio Lula Da Silva, formerly the leftist president, after he lost the 2022 presidential election. The charges are the result of a massive investigation which has revealed alleged plots. These include plans to assassinate Moraes who presided over the 2022 elections, and is now in charge of the coup trials. Bolsonaro is accused of being a member of an armed criminal group, trying to violently eliminate democracy, organizing a military coup, damaging government property, and protecting cultural assets. His lawyers maintain his innocence in all cases. Bolsonaro is accused of inciting riots when he allegedly incited thousands of his supporters to storm and destroy the Congress, the presidential palace and the Supreme Court of Brasilia in the capital of the country in January 2023. Moraes, the first of five members in a panel of justices to start public deliberations Monday, was the member who began it. He said that the crimes alleged had been acknowledged by the high courts in previous rulings, and the task now is to find the perpetrators. Moraes stated that "there is no doubt" that an attempt was made to eliminate the democratic rule-of-law, that a coup was attempted, and there was a criminal group that damaged public property. Moraes' role in the case made him a targeted by Bolsonaro allies. This included U.S. president Donald Trump and his government, who imposed sanctions against the judge and imposed 50% tariffs on Brazilian imports into the U.S. After Moraes is expected to vote Justice Flavio Dino. He was Lula's former Justice Minister. Luiz Fux will follow him, followed by Carmen Lucia and Cristiano Zánin, an ex-attorney for Lula, who preside over the panel. The panel does not include two Supreme Court Justices who were appointed by Bolsonaro. The verdict is expected to be announced by the end this week. Bolsonaro could face a sentence of over 40 years if convicted. However, the maximum prison term in Brazil is 40 years. Bolsonaro may be able to avoid the full sentence even if convicted. His supporters, who are already barred from him running for office before 2030, hope that a future president will grant a pardon. Sao Paulo Governor Tarcisio de Freitas The former Bolsonaro cabinet member, who pushed Congress to grant amnesty to the ex-president last week, was seen by many as positioning the Governor as the heir apparent to Bolsonaro’s coalition for next year’s elections. (Reporting and writing by Ricardo Brito, Brendan O'Boyle and Isabel Teles; editing by Sharon Singleton Brad Haynes and Paul Simao).
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EIA: US natgas production and demand will reach record highs by 2025, before declining in 2026
The U.S. Energy Information Administration released its Short-Term Energy Outlook Tuesday, predicting that the U.S. Natural Gas Production and Demand will both reach record highs by 2025 before declining in 2026. EIA predicted that dry gas production would rise from 103.2 billion cubic feet per day (bcfd) in 2024 to a record 106.6 bcfd by 2025, before slipping to 106.0 bcfd by 2026. This compares to a record of 103.6 bcfd for 2023. The agency also predicted that domestic gas consumption will rise from 90.5 bcfd, a record in 2024, to 91.5bcfd by 2025. It then eases to 91.4bcfd by 2026. The EIA forecasts for August 2025 for production and demand were lower than the September projections. EIA expects falling oil prices and rising gas prices in 2026. This should result in crude oil's lowest premium over gas since 2005. The agency expects that drilling activities in the U.S. will be centered more in regions with high gas production in 2026. The agency predicted that average U.S. LNG exports will rise to 16.3 bcfd by 2026, from 11.9 bcfd at the record level in 2024. The EIA predicted that U.S. coal output would increase from 512.1 million short tonnes in 2024 (the lowest since 1964) to 521.9 millions tons in 2020, before dropping to 492.5 millions tons in 2030, the lowest level since 1963. EIA predicted that carbon dioxide (CO2) emission from fossil fuels will rise from a low of 4,777 billion metric tonnes in 2024, to 4.849 in 2025, as oil, gas and coal use increase, before decreasing to 4.826 in 2026, as oil and coal usage decline. (Reporting and editing by Mark Porter, David Gregorio and Scott DiSavino)
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EU split over climate target, deal next week in doubt, draft shows
The latest compromise proposal from the European Union showed that there is a split among member states over how ambitious they want to be with their new climate target. This puts into question plans to reach a deal by next week. EU countries are currently negotiating a legally-binding 2040 climate change goal, which their ministers were planning to approve on a September 18 summit. This move is intended to reaffirm EU commitment to fighting climate change in advance of this year's U.N. global climate negotiations at the COP30. France, Poland, and the Czech Republic, for example, want to postpone the agreement and escalate the discussions to the government leaders. Climate change has caused Europe to become the fastest-warming continental in the world, unleashing deadly fires and heat. But the target has stoked tensions between governments over how much they should invest on global warming while also trying to increase defense spending and support struggling industry. The latest compromise proposal from the member countries shows that governments are divided on how much of the emission target can be achieved by purchasing foreign carbon credits, which would reduce the effort required by European industries. The document, which was dated 9 September and seen by, stated that "the level, timing, and conditions of international carbon credit contributions to the 2040 goal, require political discussions." The ambassadors of EU countries will discuss this on Friday. Overall, the goal would be to reduce net EU greenhouse gas emission by 90% from 1990 levels by 2040. A portion of this could be covered by purchasing foreign carbon credits. In 2036, the Commission proposed that countries purchase credits to cover 3% each of their 2040 emission target. In the compromise proposal these numbers are now surrounded by brackets, which indicates that countries have not agreed on them. Document was written by Denmark which currently holds the rotating EU presidency. A spokesperson for Denmark’s EU presidency stated that it had spoken with each EU member state before writing the compromise. They are still trying to reach an agreement next week. If the EU fails to reach a deal by next week, it could miss the mid-September deadline for submitting new climate plans to U.N. in time for the global COP Climate Summit in November. The draft also showed that other changes to the proposal will give countries more assurances about the EU's future green policies and their impact on industry when they are designed.
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Gold rallies to a new record high on U.S. interest rate cuts and Fed tension
Gold reached a record-high above $3,600 per ounce on February 2, fueled by investors' and central bankers' demand and expectations of U.S. interest rate cuts. Gold spot was trading at around $3,637.39 per troy ounce by 1524 GMT, a rise of over 38% this year. Analysts predict that gold will trade between $3,600 and $3900 in the short to medium term. They also expect it to reach $4,000 in 2019 if geopolitical and economic uncertainties continue. In a survey published in July, analysts predicted that gold prices would average $3,220 an ounce this year, compared to $3,065 per ounce in April and $2,756 per ounce in January. Ricardo Evangelista is a senior analyst at ActivTrades. He said that the dollar's bearish outlook, based on expectations of Fed cutbacks, investors' distancing themselves from U.S. investments, and tariff-related uncertainty, supports gold. Since President Donald Trump returned in January, the dollar has dropped by nearly 11%. The expectation of more rate cuts in the U.S. will further weaken the U.S. dollar, which makes gold denominated in dollars cheaper for holders of foreign currencies. According to CME Group's FedWatch, traders see a 92% probability of a rate cut of 25 basis points in September at the Fed meeting. Trump's criticisms of Powell, and his attempts to remove Lisa Cook as Governor have raised concerns about the Fed's autonomy and led to further gold purchases. Carsten Menke, Julius Baer's analyst, said: "The most bullish factor is...potential interference with the U.S. Federal Reserve as well as concerns over the dollar's position as a safe haven." Security concerns from the Middle East, as well as between Russia and Ukraine, are also factors that have boosted gold's appeal. Gold purchases by central banks, such as China's, have also boosted gold prices. The World Gold Council reports that central banks are planning to increase the gold portion in their reserves, while decreasing dollar reserves, over the next five-year period. Exchange traded gold funds that are backed by physical gold have also seen significant increases in assets. The SPDR Gold Trust is the largest physical gold exchange traded fund in the world. Its holdings rose to 990.56 tonnes on September 2, a 12% rise so far this season and the highest since August 2022.
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Trump EPA wants to accelerate AI infrastructure permits
The Environmental Protection Agency proposed on Tuesday new measures to speed up the construction of infrastructure required for rapid building of data centers in artificial intelligence. This would allow companies to begin building before obtaining an air permit. The proposal comes just six months after the EPA launched an initiative called Powering the Great American Comeback, which emphasized the agency's priority on quickly building power generation in order to meet the soaring demands from data centers. Lee Zeldin, EPA Administrator, said: "Clean Air Act permits have been a barrier to innovation and growth for years." "We will continue to fix this broken process." The EPA proposal redefines the pre-construction requirements of power plants, manufacturing and other infrastructure. This will allow companies to begin some construction without regard to air emission before obtaining Clean Air Act permits. The Trump administration is focused on winning the race for rapid development and scaling-up of AI throughout the nation. It has already launched an executive action package aimed at increasing energy supply in order to fuel its expansion. The United States and China, two of the world's most powerful economic rivals, are engaged in a technology arms race for an economic and a military advantage. AI's massive data processing requires an increase in energy supplies, which is straining many utilities and grids. New Source Review Program of the Clean Air Act will not permit construction of major installations before they have obtained air permits. The EPA, under the Trump administration has taken what it describes as the biggest deregulatory action in its decades-long history. This includes a move that would repeal the scientific and law foundations for regulating greenhouse gases, which most scientists and ecologists agree are driving climate change. (Reporting and Editing by Bill Berkrot.)
Stocks reach record highs, gilt yields soar on Finance Minister uncertainty
The global stock market rose to record levels on Wednesday, after U.S. labor data revealed an unexpectedly low reading. Meanwhile, British government bond yields soared amid speculation over the future of Britain's finance minister.
ADP's National Employment Report shows that private payrolls fell by 33,000 last month, after a downwardly-revised 29,000 job increase in May. This is well below the 95,000 jobs expected by economists surveyed by.
The data is released ahead of the government's payroll report on Thursday, but there is very little correlation between them. On Thursday, we will also see the weekly initial claims for unemployment. According to CME's FedWatch Tool, market expectations of a rate cut in July by the U.S. Federal Reserve increased to 27% following the release of the data. This is up from 20,7% the previous session. Jim Awad is the senior managing director of Clearstead Advisors LLC, New York. "An employment softening that induces the Fed to lower interest rates would be positive. But if it softens excessively, then this would be negative for growth and profit," he said. The S&P 500, Nasdaq, and Dow closed at record levels on Wall Street. This was boosted in part by a rebound in Tesla stock after it dropped 5.3% Tuesday. Tesla shares closed at 4.97% higher after the electric carmaker announced its quarterly deliveries.
The Dow Jones Industrial Average dropped 10.52 points or 0.02% to 44,484.42, while the S&P 500 rose by 29.41 points or 0.47% to 6,227.42, and the Nasdaq Composite gained 190.24 or 0.94% to 20,393.13. The MSCI index of global stocks rose 3.84 points or 0.42% to 921.24, after reaching an intraday high of 922.27. Meanwhile, the pan-European STOXX 600 closed with a 0.18% gain, boosted by renewable energy stocks and luxury stocks. The yields on longer-dated U.S. Treasury notes rose. The benchmark U.S. 10 year note was up 3.4 basis point at 4.283%. British government bond rates surged at one point, jumping almost 23 basis points. This was the highest since October 2022. The jump came after Finance Minister Rachel Reeves, who appeared visibly upset in parliament a day after announcing a sharply reduced plan to cut benefits, spoke out.
The yield of the 10-year government bonds, or gilts, last increased 16.8 basis points to 4.621%. The pound fell 0.83%, to $1.3631. It had dropped as high as 1.35%. This was the biggest percentage decline since June 17th. The dollar index (which measures the greenback versus a basket currency) rose 0.13% to 96.7 and was on course to end a nine-day decline streak. The euro fell 0.03% to $1.1801.
Donald Trump announced on Wednesday that the U.S. will impose a tariff of 20% on Vietnam. This is lower than what was initially announced, as investors wait for progress in other deals. He said previously that he would not consider extending the deadline to negotiate with countries, despite negotiations with Japan failing to progress, but he still expected a deal to be reached with India. The Vietnam-U.S. deal announced today is a positive step in reducing uncertainty around trade. Not only does it have a direct impact on the market, but may also be viewed as indicating that more deals will follow over the next week. Investors also viewed Trump's massive spending and tax bill, which was expected to add $3.3 billion to the national debt and cut taxes. Republicans in the House of Representatives set up a vote that would reveal whether they have enough support to pass the bill out of Congress. U.S. crude rose 3.06%, to settle at $67.35 a barrel. Brent settled at $71.11 per barrel. This was up 2.98% for the day after Iran suspended its cooperation with the U.N. Nuclear Watchdog.
(source: Reuters)