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ArcelorMittal South Africa could face job losses of over 4,000 people, according to a union.
A union has announced that ArcelorMittal South Africa is planning to cut 4,000 jobs, which is nearly half of its current workforce. This was more than originally expected. The cuts will now extend to the main Vanderbijlpark plant, the union added. Steelmaker announced previously that it would shut down its long-steel plants in Newcastle and Vereeniging, resulting in the loss of 3,500 jobs. This is because talks with government failed to produce an alternative solution. AMSA stated that it is "limited in our ability to say anything in the public domain due to the complexity of the issues under discussion and the cautionary announcements we made recently", adding "certain processes are ongoing." About 4% of the group's output is produced by this company, which produces 2.4 million tons of steel per year. Solidarity said AMSA told its employees it was planning "mass layoffs of more than 4,000 workers". The statement stated that the cuts were expanded to Vanderbijlpark, AMSA's flagship facility for flat steel. The company reports losses since 2023. It posted a headline loss of 1 billion rand (56 million dollars) in the first half of this year due to low sales and prices. AMSA has delayed the closure of its long-running steel operations twice. The operation is buckling due to a weak local market, high electricity rates, poor logistics, and competition from local scrap recycling plants as well as imports from China. The union claimed that the government was dragging its feet in finding solutions. AMSA asked the government for a reduction in scrap export duties that it claims give recyclers a unfair advantage. It also requested tariffs to be imposed on imports. The group also asked for favourable freight and electricity costs from the state-owned utilities. (Reporting and editing by Kevin Liffey; Nelson Banya)
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World Bank calls for new push to combat economic pollution
One of the World Bank senior managing directors said that using natural resources more effectively could reduce pollution by half. Axel van Trotsenburg stated that the damage is especially severe for countries with low incomes, which are most threatened by poverty, climate changes and biodiversity loss. He said that 80% of the people living in low-income countries were affected by all three, and the World Bank would continue to respond to these issues even though many countries are cutting their aid budgets. "Our commitment...is ending poverty on a planet that is livable, period. Van Trotsenburg stated that they would not waver in their commitment. Burundi is one of the countries most affected, with 8 million people facing water and air pollution and 7 millions facing land degradation. The report stated that 12 million Malawians face all three threats. The report urges countries to redirect subsidies that are currently being spent on harmful activities. The report was published in a fractious and polarized political environment ahead of the COP30 climate conference taking place in Brazil this November. The World Bank, as well as other multilateral lenders, are also waiting for the results of an American review of their operations that was ordered by President Donald Trump back in February. Van Trotsenburg stated that the World Bank would use data to support discussions about environmental degradation between its member countries. The report estimates that forests are responsible for around half of all rain clouds in the world. Deforestation, it said, reduces rainfall by $14 billion per year just for the nine countries of the Amazon region. This is a huge blow to the nations affected. Landscapes will also be less able to slowly store and release water over time. This amplifies droughts, resulting in a loss of $379 billion or 8% of the global agricultural output. The report focused on the economic impact of ecological threats, which are often perceived as distant. We've always believed that countries should grow first and then clean up their mess later. Richard Damania, the Bank's Chief Economist for Sustainable Development and co-author of the report, stated that this is false. (Editing by Ros Russel)
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Met Office: UK summer is the warmest on record.
The Met Office said that the UK has had its hottest summer since 1884. Due to climate change caused by humans, it is more likely for the country to experience similar weather in the near future. As global warming continues to intensify, countries around the world have been experiencing record heat in recent times. The summer of 2024 is now considered the hottest on record. The world's hottest On record Heatwaves in Europe this summer have contributed to Wildfires can be deadly In countries like Spain and Portugal. The Met Office reported that the average temperature in Britain during summer months June, July, and August was 16.10 degrees Celsius, which is 60.98 degrees Fahrenheit. This year's record, 15.76 C (60.98 F), has been surpassed. The summer 2025 average is 1.51 C higher than the long-term weather average. Mark McCarthy, the head of climate attribution at the Met Office said, "Our analysis shows the summer of 2025 is more likely due to the greenhouse gases we have released since industrialization." Our changing climate means that what was once considered extremes are now more common. This summer Britain experienced four heatwaves, with the highest temperature recorded at 35.8 C in Faversham, south-east England. This was lower than UK's highest temperature of?40.3 C, which occurred in summer 2022. (Reporting and editing by William James; Sachin Ravikumar)
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In August, the consumer prices in Peru recorded their sharpest drop in over a year.
According to the latest data released by the national statistics agency INEI, Peruvian consumer prices fell 0.29% for August in Lima's metropolitan area. In August, the consumer prices of the third largest copper supplier in the world fell the most since September last. This is a sharp decline compared to the 0.23% rise in July. The INEI released a statement that said the largest decrease in food and non-alcoholic drinks was in Peru, where the price of fish fell by 1.05%. Housing, water, electric, gas and other fuels also decreased 0.94%, due to a reduction in residential electricity prices. The Lima metro area's inflation rate for the year ended August was 1.11%, which is the key benchmark in Peru. This figure is moving closer to the lower end of the target range set by the central bank of 1%-3%. Although the annual inflation rate was at its lowest since August 2018, the central bank expects it to increase as it forecasts the rate. Stand at around 1.8% By the end of 2025, we expect to reach this goal. Reporting by Marco Aquino and Aida Pelaez Fernandez; Editing by Alex Richardson, Natalia Siniawski
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As Trump promotes data centers, communities push back
Trump outlines government role in data centers The community has become more organized and responsive. Learn from other localities by forming a network. By Carey L. Biron Trump announced an AI strategy in the last month, aimed at achieving U.S. leadership by cutting regulations, accelerating permits and making land and infrastructure available for data centers. The strategy was announced after his executive order that named AI as a key component of national security, and an announcement by the private sector to invest $500 billion in a plan called "Project Stargate", which would boost AI development throughout the country. Data centers are the brain, engine and memory of AI and cloud computing, which is used to power everything from toys for children to office efficiency and military analysis. Local communities have expressed concern over the development of data centers that clog up already populated areas and contribute to congestion, traffic, light and noise pollution, as well as a lack of water and increased energy costs. As they become more organized, they are building a national network that links areas with similar development challenges. Data Center Watch reports that 140 activist groups are fighting to stop the development of data centers in 24 states. Local opposition has slowed or stopped projects worth $64 Billion in the last two years. Morgan Butler, senior attorney at the Southern Environmental Law Center, says that under the government's latest strategy, data centers are treated in a similar way to military installations when it comes to preferential regulatory treatment. He said that local governments could use their zoning and land-use authorities to approve or deny data center development. However, the new government strategy would rob them of all information they need to make decisions. He said that the strategy "threatens" to discourage localities and states from adopting ordinances which limit data center development. He said that residents are deprived of the information needed to take action. It is harder to convince the local government of the correct decision if the information you have on hand is not accurate. The White House has not responded to a comment request. 'HYPER-LOCAL FOCUS' A massive increase in data centers over the past few years has led to nearly half of all data centers around the world being located in America. Amazon, Google, Meta, as well as less-known developers like QTS are building data centers. The U.S. Department of the Interior Department is also looking for public lands that could be developed. Many localities are eager to host this type of development in order to create jobs and boost economic growth. According to a report released in February by the Data Center Coalition (an industry group), the data-center sector contributed $727 billion and 4.7 million jobs to the Gross Domestic Product (GDP) of the United States in 2023. Some communities are not as enthusiastic. Ben Inskeep is the program director of Citizens Action Coalition in Indiana, a utility watchdog group. He said that locals find it frustrating how they operate in secrecy and wait until the very last moment to announce the construction of a new data center. He said that communities have sought out other groups who have had similar experiences. Inskeep stated that his coalition tracks 40 data center proposals across Indiana. Six of these have been withdrawn due to local objections. Wendy Reigel of Chesterton, in northern Indiana led an effort last year to stop the development of a huge data center on an old golf course in a 500-home neighbourhood. She said, "You would never have thought that a golf course for commercial purposes could become a heavy industry." She said that the developer retracted its application, but then moved on to other nearby communities. Each of them also fought against it. She said that the key to success is to have a "hyperlocal" focus. The main goal is to attend the meetings. Send your viewpoint, put up yard signs and speak to people who will make the decision. NEW TOOLS New tools are being developed to address local concerns through legal and legislative reforms. The state of Oregon created a new category of power users for data centers in June. This was done because of concerns about the costs of massively increased electricity usage by these operations. Bob Jenks said that previously, costs were "spread out like peanut butter" to all users. This strategy made sense because power demands rose at a similar rate, according to Jenks. In the last five years, industrial customers including data centers have increased their demand by 95%. Jenks stated that electricity rates have increased by 50% over the last five years. Last year, a record number residential customers were disconnected due to non-payment. Similar bills have been introduced in Pennsylvania and other States. Vida Carroll lives in rural Prince William County and is concerned about the future development of Virginia's data centers, the most concentrated in the world. She said that communities across the country are experiencing similar problems to those Virginians are facing. She said that the actions of residents in Northern Virginia influenced elections and led to some data center proposals being scaled back. She said that in August, they won a court case against a 2,100-acre proposed data center complex. The construction of the transmission line, and the prospect of increased electricity rates, had been a concern for residents of the area for many years.
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China and Russia reject European sanctions against Iran
China and Russia, permanent members of the UN Security Council, backed Iran in their rejection on Monday of a European move to reimpose UN Sanctions on Tehran that were loosened under an agreement on nuclear energy a decade earlier. In a letter signed by China, Russia and Iran's foreign ministers, they said that a British, French and German move to restore sanctions automatically under the so-called "snapback" mechanism was "legally flawed and procedurally flawed". China, Russia, and the three European nations, collectively known as E3, were all signatories of the 2015 Iran nuclear deal. Donald Trump, the first American president to serve in office, pulled the United States from the agreement during his first term. The Europeans have launched the "snapback Mechanism" Last week Iran is accused of breaking the agreement, which provided relief from international sanctions in exchange for curbs on Iran's nuclear program. In a letter posted on X, Iran's foreign minister Abbas Araqchi said that Britain, France and Germany were "abusing the authority and functions" of the UN Security Council. Iran has been breaking the limits set by the 2015 agreement on uranium. It argues that this is because Washington pulled out of the deal. The agreement expires this October, and a snapback mechanism will allow the sanctions lifted as part of it to be reinstated. Iran and E3 held discussions aimed at reaching a new agreement on nuclear energy after Israel and U.S. Bombs dropped on Iran's nuclear facilities Installations in mid-June. The E3 said that the Geneva talks last week had not produced enough signals to indicate Iran's readiness for a renewed deal. In a post on X, Iran's Foreign Minister said: "Our joint message with my colleagues the foreign ministers from China and Russia signed in Tianjin reflects our firm position that European attempts to invoke snapback are legally baseless, and politically destructive". Reporting by Jana Choukeir, Elwely Elwelly and Peter Graff. Editing by Hugh Lawson.
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Silver at 14-year peak; gold nears record highs due to US rate cuts
The dollar was weaker and bets on a rate cut by the U.S. Federal Reserve boosted gold to a four-month-high. Silver also reached a new high, surpassing $40 an ounce, for the first since 2011. By 9:37 am EDT (1337 GMT), spot gold had risen 0.9% to $3,477.56 an ounce, its highest level since April 22, when it reached a record high of $3,500.05. U.S. Gold Futures for December Delivery gained 0.9%, to $3 547.70. Spot silver rose 2.6% to $40.69 per ounce - its highest level since September 2011. Labor Day is observed on Monday, September 5, 2018. Dollar-priced Gold is now cheaper for foreign buyers. The U.S. currency has been trading at its lowest level since July 28, making it the cheapest dollar in a basket. Ole Hansen is the head of Saxo Bank’s commodity strategy. He said that "gold, and particularly silver, continued Friday's gains. This was supported by U.S. inflation sticking, a weakening consumer mood, (expected), rate cuts... and concerns about Fed independence." Data released on Friday showed that the U.S. Personal Consumption Expenditures Price Index rose in line with expectations by 0.2% from month to month and 2.6% over a year. Tim Waterer is the chief market analyst at KCM Trade. He said that silver is moving higher due to lower expectations. A tight supply market also helps to maintain a positive bias. Mary Daly, President of the San Francisco Federal Reserve Bank, reiterated last week her support for a cut in interest rates, citing risks on the labour market. The market is waiting for the U.S. jobs report on Friday, expecting that it will allow the Fed rate cuts to resume from September (given) that this supports investment demand," UBS analyst Giovanni Staunovo said. A poll indicated that the August non-farm payrolls are due on Friday and will have increased by 78,000 jobs compared to 73,000 in July. Gold that does not yield is usually a good investment in an environment with low interest rates. U.S. trade representative Jamieson Greer stated on Sunday that the administration of President Donald Trump was continuing to talk with trading partners despite an U.S. Court ruling that most tariffs were illegal. Palladium rose 1.9%, to $1129.70, and platinum gained 3.2%, to $1408.54. (Reporting and editing by Sumana Nady, Susan Fenton, and Tomasz Janowowski in Bengaluru.
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Draft shows that the EU is considering a 10-year tax break for jet fuel and shipping fuels.
A draft document that was seen by revealed that the European Union is considering delaying the introduction of EU-wide fuel taxes for aviation and shipping for a period of 10 years in order to complete long-delayed reforms to energy taxation. In 2021, the European Commission proposed a revision of energy tax regulations to be in line with efforts to curb climate change. The EU proposed gradually introducing tax on CO2-emitting jet fuels used for flights and ships within the 27 nation bloc. These fuels are currently exempt from EU minimum levies. A draft EU negotiation proposal revealed that governments resisted changes and now consider a 10-year delay in which fuels for aircraft and ships would retain their current EU tax exemption. The directive stated that the Commission "should examine the possibility of taxation in 2035 and propose amendments where appropriate to this Directive." The EU's negotiators are meeting on Friday in Brussels to discuss the compromise. The draft stated that only small aircraft, with a maximum 19 seats, as well as boats classified as "private pleasure crafts", could be taxed before the 10-year period is over. It said that the exemption was designed to "maintain the competitive position of Union businesses." The EU has already introduced minimum tax rates on other fuels such as petrol and electricity used in automobiles. Climate activists have called for tax reforms to encourage cleaner fuels and discourage the most inefficient and dirty ones. It is difficult to change the EU tax policies because they require unanimous approval by all EU member states. EU diplomats have said that countries with a large shipping sector and those with a large tourism industry are resistant to change. The previous proposal, which sought to exempt temporarily island nations like Ireland, Malta and Spain and countries with islands, such as Spain, from the ban, failed to gain enough support. Denmark, the rotating EU presidency, drafted the latest document. The EU presidency of Denmark said that it was aiming for the countries to come to an agreement on tax changes by November.
Oil prices remain stable as rising production offsets disruptions in Russia's supply
The oil prices rose on Monday, as concerns about rising production and the impact of U.S. Tariffs on demand offset disruptions in supply caused by intensified airstrikes between Russia and Ukraine and pressures from a weaker currency.
Brent crude rose 31 cents or 0.46% to $67.79 per barrel at 0823 GMT. U.S. West Texas Intermediate Crude fell by 32 cents or 0.5% to $64.33. The U.S. holiday is expected to dampen trading.
Brent and WTI crude recorded their first monthly decreases in four month in August. Losses of 6% or higher were attributed to increased supply by the OPEC+ group.
"Crude has been fluctuating within the established ranges since August, as geopolitical tensions offset fears of an oversupply in the fourth quarter," said Ole Hansen.
Investors are focusing on Beijing where Chinese President Xi Jinping is attending a regional meeting with his Russian counterpart Vladimir Putin, and Indian Prime Minister Narendra Modi. Hansen said that the OPEC+ summit on September 7 was also on investors' radar.
According to ANZ analysts, the markets remain worried about Russian oil flow. Weekly shipments from Russian ports have dropped to a 4-week low of 2,72 million barrels per daily (bpd).
Volodymyr Zelenskiy, the Ukrainian president, vowed to strike back with further strikes in Russia on Sunday after Russian drones attacked power plants in northern and south Ukraine. Both countries have intensified their airstrikes over the past few weeks, targeting energy infrastructures and disrupting Russian crude oil exports.
The poll conducted on Friday indicated that oil prices will not increase much this year from their current levels, due to rising production from the top producers and U.S. Tariff threats.
Energy Information Administration data released on Friday showed that U.S. crude production reached a record in June. It increased by 133,000 barrels per day (bpd) to 13,58 million bpd.
This week, the U.S. Labour Market Report will provide a reading on the health of the economy and test investor confidence in interest rate reductions that are imminent. Investors have been encouraged to invest in riskier assets like commodities.
The dollar fell to its lowest level in five weeks on Monday before the release of the data. This made oil cheaper for buyers who use other currencies.
(source: Reuters)