Latest News
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UK government reports drought in almost three quarters of England
The British government announced on Monday that almost three quarters of England are now in a 'drought,' highlighting the worsening effects of a 'prolonged dry climate,' particularly for agriculture, public water supplies, and wildlife. A combination of low rainfall and high temperatures has caused a flash-drought to affect 71.3% of the country. This has increased since the end of July, when nearly half of the country was declared 'in drought. According to the latest updates, 45 million people live in a drought zone and 27 millions are restricted from using water. Britain is currently 'in the grips of its fifth heatwave this year. England and Wales have recorded their driest month in 190-years. Southeast England only received 1% of the average rainfall. Emma Hardy, Water Minister, said in a?statement: "We are stepping-up our?support and working to make building more irrigation?reservoirs on site easier for farmers." The government has said that the levels of rivers, reservoirs and groundwater continue to drop, while the hot, dry weather conditions are increasing the risks of wildfires. Last month, UK health authorities reported that 2,877 deaths in Britain this year were due to heat-related causes. The government also stated that the heat is affecting breeding birds, freshwater fish, and amphibians. (Reporting and editing by William James; Muvija M.)
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The power market in Brazil is being expanded by global traders and financial groups
Executives from global commodities traders and financial companies, such as Trafigura, StoneX, and Macquarie are expanding their presence in Brazil's energy trading market. They are betting on the rising volatility of prices and the long-term growth of this sector, even though a wave financial distress is hitting local players. As several Brazilian power traders are facing financial problems, international groups with a large amount of capital can now gain a larger share of one the largest electricity markets in the world. StoneX's local segment head, Marcelo Mello, has announced that the company has opened its first global trading desk for electricity in Brazil. The goal is to create synergies between agribusiness and power producers. StoneX is awaiting more clarity on the geopolitical risks, and the turmoil in the domestic trading industry before it launches trading operations. However, StoneX already began offering risk management services to energy companies. Macquarie, a bank based in Australia, has also increased its?push into the Brazilian power market since last year. This is according to sources who are familiar with the situation. The bank stated that it sees a number of opportunities for clients to manage price risk, secure financing, and structure complex transactions. Trafigura announced its entry into Brazil’s power market in July. The company said that the hydroelectric-heavy mix of the country's generation complements its energy portfolio in the United States, Europe, and offers significant trading possibilities. Global firms are flooding into the market as a result of a consolidation of the sector following a number of insolvencies among local traders and legal recovery proceedings. Participants in the industry and regulators are evaluating ways to improve market security. This includes collateral requirements and developing an exchange-traded electricity market. Danske Commodities of Equinor entered the Brazilian market in 2023. The company spent the next few years obtaining regulatory approvals, assessing risks and opportunities, and then stepping up its activities in this year. The changes will likely accelerate consolidation and concentrate trading activity on a smaller group of financial stronger counterparties. (Reporting and writing by Leticia Ficuchima, Editing and proofreading by Aurora Ellis).
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Two dead following Colombia earthquake; others trapped
Authorities said that at least?two deaths were caused by a powerful earthquake in western Colombia, on Monday. The quake brought down buildings and trapped people in rubble. In an interview with Blu Radio's Jorge Eduardo Rojas, the mayor of Manizales said that two people had been?killed?. Alejandro Eder said, however, that preliminary reports indicated at least 20 buildings collapsed in Cali and people were trapped. Cali has requested that disaster teams from Bogota, Medellin and other cities assist in the rescue efforts. Epicenter of the quake was in Choco province, near San Jose del Palmar. Choco is a sparsely-populated province along Colombia's Pacific Coast. Choco Governor Nubia Cordoba confirmed that there were significant damages and injuries in Quibdo. She also warned residents of the aftershocks. The Governor of the neighboring province?Risaralda, Juan?Diego Patino, said that Pereira, one of Colombia's major cities in coffee-growing regions, also suffered severe damage to buildings. The Colombian Civil Aviation Authority said that flights had been suspended in Pereira and Manizales as well as Quibdo. Armenia, Cartago, Buenaventura and Cartago while inspectors checked the airports for structural damage. The disaster agency of the country said that it had received reports on the quake from all 32 capitals in each department, which triggered evacuations. The Colombian geological service has revised the earthquake's magnitude to?7.4; it also stated that?it occurred at a depth 96 km (60 mi). The U.S. Tsunami Warning System said that there was "no tsunami danger". Witnesses in Venezuela's border state of Tachira, and central-western city Barquisimeto confirmed that the earthquake was felt. Venezuela was hit by two devastating earthquakes in June that killed over 6,000 people. Most of them were on the coast, near Caracas. (Reporting and writing by Nelson Bocanegra and Luis Jaime Acosta; editing by Paul Simao & David Holmes).
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Documents show that Libya's central Bank governor has resigned.
According to two documents seen on Monday, Naji Issa has submitted his resignation to the rival legislative chambers of Libya. On Monday, two documents seen by? revealed that the governor of Libya's Central Bank (CBL), Naji Issa, had submitted his?resignation to the country's rival legislative chambers. The documents, whose authenticity was verified by 'Issa', stated that he would not be able to continue his position, but he did not elaborate on the reason, citing their sensitivity. Issa stated in documents sent to the leaders of the two chambers that he would not be able to continue his position. The two documents stated: "I apologize that I am not able to continue my duties as Governor of Central Bank of Libya without stating their reasons due to their sensitive nature." Issa, in a message to the?public, confirmed the authenticity and the letter. He declined to give any further information about his decision. Both documents date from August 9. The eastern House of Representatives, elected in 2014, and the western High Council of State were formed in 2015 as part of an agreement. Members of this council were selected from a 2012 parliament. Since 2014, Libya is divided into two rival authorities in the east and west. This division was born out of the chaos that followed the 2011 NATO-backed uprising following the fall Muammar Gadhafi. Mohamed Takala, the?head of High Council of State asked Issa not to resign "in order to preserve financial, economic, and political stability". Issa has yet to receive a response from the House of Representatives. Issa assumed the position in 2024, when both legislative chambers agreed to his?appointment to resolve a dispute over the control of the CBL which led to Sadiq al Kabir's ouster. The standoff began when western factions acted?in August of 2024?to oust Kabir?and replace him?with a rival?board?, leading the eastern factions?to shut down?all oil production?. This move drastically reduced Libya's output of oil and its exports throughout the crisis. Reporting by Ahmed Elumami, Hani Amara and Yasmine Gahania; Writing by Ahmed Elumami, Yasmine Ghania and William Maclean. Editing by William Maclean.
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First death in wildfire in British Columbia is an octogenarian
Canadian police confirmed that an 80-year old woman died in the rapidly spreading Bald Range Wildfire in British Columbia’s wine country. The blaze had nearly doubled its size over the past weekend, forcing the evacuation of residents in the area. This was the first death reported in connection with the wildfires in the area, which were engulfed in smoke and flames as the hot and dry weather conditions exacerbated the fire. In a late Sunday statement, the Royal Canadian Mounted Police stated that a Meadow Valley resident had been 'evacuating with a member of her family when she died suddenly. The statement stated that the police believe her death was caused by the wildfire. They are currently investigating. Summerland is a nearby district municipality with a population of about 12,000, and a significant senior population. This was evacuated at the weekend. Summerland mayor Doug Holmes confirmed that the senior citizens' homes had been notified in advance. LONGEST EVACUATION Canada experienced a very hot summer, resulting in more than 4,600 forest fires and 4 million hectares being burned. The Bald Range wildfire has triggered the largest evacuation in British Columbia this summer, according to officials. Over 20,000 people in the province were forced to leave their homes. Wildfires are also a problem in the United States. On Sunday, evacuees who were forced to flee from a cluster of fires near Spokane in Washington, Washington, could return home. As many as 64,000 residents were ordered to evacuate at the height of this conflagration. The BC Wildfire Service stated?on Monday that it expected lightning to ignite new wildfires, in the Okanagan Region. This region has received limited rainfall. The agency stated that high temperatures and increased wind gusts would continue in the Okanagan region and the southeastern part of B.C. This could increase the number of fires. Since it was discovered last Friday, the Bald Range Fire has spread to over 33,606 acres (13600 hectares). Reporting by Nivedita Balu, Toronto; Editing and production by Caroline Stauffer & David Holmes
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Gold prices fall on a strong dollar; markets watch US inflation data to get Fed policy clues
Gold prices fell on Monday due to a stronger dollar and investors awaiting key U.S. data about inflation that could influence expectations of the Federal Reserve. By 09:33 am EDT (1333 GMT), spot gold had fallen 0.2%, to $4335.27 an ounce. After an unexpected decline in U.S. Nonfarm Payrolls, it reached its highest level since Friday. U.S. Gold Futures dropped 0.1% to $4,394.00. Jim Wyckoff is a market analyst at American Gold Exchange. He said, "Gold is under pressure from the firm dollar index today and is taking a break?ahead?of a key inflation report due later this week." Dollar-priced gold is now more expensive to buyers abroad. Investors are waiting for the U.S. consumer price data, due Wednesday, and the producer price data, due Thursday. These data will give them a clue as to?the Fed’s outlook on interest rates. Economists surveyed by?expected the consumer price index for July to have increased 3.4% year-onyear, compared with 3.5% in June. The CPI data will be crucial. The markets are expecting a report which will not be very positive on inflation and lead to gold trading in the short term. Last week, data showed that the U.S. economy lost jobs unexpectedly in July. Previous job gains reported for the previous two months were revised sharply lower. This tempered financial market expectations about a rate increase?from Fed?next. According to the CME FedWatch Tool, traders still price in a 46 percent chance of a rate increase in September, and a 79 percent chance in December. Bullion's non-yielding characteristics make it less appealing in an environment with high interest rates. Iran announced that it was close to a final agreement with Oman, which would define new'shipping lanes' between the two countries through the Strait of Hormuz. However, the U.S. The strategic waterway must be reopened after meeting other conditions. Silver spot rose 0.6% per ounce to $63,96, while platinum fell 0.5% to 1,736.45, and Palladium dropped 1% to 1,363.50.
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Saudi Aramco delays Jazan oil refinery restart to August 30, IIR note shows
Saudi Aramco has ?postponed the restart of its ?400,000-barrel-per-day ?Jazan refinery to August 30 after two Houthi attacks since late July, according to an alert from industry monitor IIR seen by . The extended outage may further disrupt global fuel markets, already affected by the Iranian war and refinery failures in the Middle East. Ukrainian attacks against Russian refineries could also boost refining margins. Yemen's Houthi fighters claimed on Sunday that they had attacked the refinery. The refinery has been closed since July 27, following an earlier Houthi attack, according to previous IIR alerts seen by. The previously planned restart was set for August 15. Saudi Aramco?did not immediately respond? to a request for a comment. Last month, the Houthis announced a naval blockade against Saudi Arabia on the Red Sea. They cited what they called a Saudi siege. Riyadh has denied the claim. Saudi Arabia's Energy Ministry said that Aramco firefighting teams extinguished an early morning blaze at a refinery facility. The plant did not provide any further information on its operations. According to 'IIR', the attack on July 27 damaged the refinery’s Integrated Gasification -Combined Cycle (IGCC), as well as the tank farm area. The report also stated that the refinery's 80,000 bpd reformer has been unpredictably offline since May 27 due to operational issues. Reformers transform naphtha to high-octane blendstocks and produce hydrogen for other refinery units. According to Kpler data for July, Saudi fuel exports including liquefied gas averaged 1.32 million bpd, an increase from 1.16 million bpd during June, but still about 30% below the levels before the Iran War began late in February. Reporting by Ahmad Ghaddar. Kirsten Donovan and Aido Lewis edited by Mark Potter.
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Wildfires in southern Spain worsen as gusts of wind hamper firefighting efforts
Regional authorities reported that a large wildfire burning in southwest Spain was beyond the ability of firefighters to extinguish on Monday. Meanwhile,?hot, windy weather? fueled other fires across the country. According to the European Forest Fire Information System, a series of heatwaves has scorched?much? of Europe. The Mediterranean nation is now facing a disastrous summer wildfire season. Over 244,000 hectares (603,00 acres) of land have been burned in 400 fires this year. This is an area that is six times bigger than it was at the same point last year. Scientists say global warming has exacerbated heat and droughts across Europe this summer, which have caused havoc with power production, shipping, and public health systems. FLYING EMBERS - FIRE IN ALL DIRECTIONS Antonio Sanz, Andalusia’s regional head for emergencies, told reporters the extinguishing of the fire around the medieval city of Niebla in the south-west of the county was like a “long-distance obstacles race” and would take several days. The area affected by the fire is already close to 20,000 hectares. The combination of wind gusts and the rugged terrain in the area, along with convective phenomenon creating fire clouds, spread flying embers all over the place, causing secondary blazes to start. Sanz stated that nearly 500 people had been evacuated from the area, while other precautionary measures are being evaluated. There were also wildfires in the provinces of Segovia in the centre and Castello in the east. A fire in Segovia that began on Saturday when a vehicle ignited on an autoroute forced 176 residents of two towns to flee their homes. The fire spread rapidly across the surrounding pastures. Authorities in the area said that the situation had improved after the humidity levels increased over night, but the number of trees scattered across the granite landscape could make firefighting more difficult. According to the Valencia regional government, a second fire in Castellon’s Tirig has still not been fully contained but is close to stabilising after the "very favorable" weather conditions overnight.
Wall Street, European shares and oil prices are under pressure as Hormuz and inflation is in focus
European shares and major Wall Street indices fell on Monday as markets focused on the outlook of Federal Reserve interest rate?and a possible deal between the U.S.?and Iran for the reopening of the Strait of Hormuz.
After Iran demanded that the United States meet several conditions before the Strait could be reopened, oil prices?jumped?.
Wall Street saw the Dow Jones Industrial Average fall 0.12% to 53.974.62 while the Nasdaq Composite fell 0.17% at 26,645.08. S&P 500, however, defied the trend and rose 0.02% to 7,759.27.
The U.S. stock market hit a new record on Friday, after traders cut their bets about Fed rate increases due to a less-than-expected job report.
The pan-European STOXX 600 fell by 0.16% and Europe's FTSEurofirst 300 dropped by 0.14% on Monday.
The MSCI global stock index clung on to gains with a gain of 0.05%.
Iran announced on Sunday that it was nearing the 'final stages' of a deal to allow Oman transit through the Strait of Hormuz. However, the Iranian government reiterated that this waterway will only be reopened once the United States meets other conditions. These include compensation, the end of sanctions and military threats.
Brent crude futures rose?3.06%, to $86.11 a barrel. U.S. crude increased 3.26%, to $80.73. The global benchmark prices are still well below the peak reached in late April, when oil prices topped $126 per barrel.
This week, the key event is Wednesday's U.S. inflation reading for July. It will influence Fed officials thinking about rates. Investors will also watch euro zone employment figures and U.S. consumer price figures to get clues about the interest rate outlook.
The economists surveyed by are expecting the consumer price index data to show a 3.4% increase year-on-year on Wednesday. This is compared to a 3.5% rise the previous month.
Mohit Kumar is a senior European analyst at Jefferies. He said that the key to this year's Fed hikes will be this week's report on inflation.
Kumar said that if oil prices were to remain stable and fall from their current levels, the Fed would not need to raise rates.
MSCI's broadest Asia-Pacific share index outside Japan closed up 0.61% at 1,628.74.
Emerging Market Stocks rose by 0.66%, to 1,668.75.
EARNINGS HELP POWER STOCK
In recent weeks, stock markets have soared to record levels around the globe. This was largely due to strong corporate earnings.
Analysts from BofA stated that after Alphabet's and Amazon's investment gains were excluded, earnings per share had increased by 30% over the previous year. The 76% rate of EPS beating was the highest since 2021.
JPMorgan strategists revised their estimate of 2026 earnings per share to $365. This represents a 35% annual increase. They also raised their S&P500 price target from 7,800 to 8,000. It is currently 7,758.
This week's earnings are lower, but include semiconductor maker Applied Materials and networking equipment maker Cisco, as well as cloud infrastructure technology provider CoreWeave.
BONDS and CURRENCIES
The yield on the benchmark?U.S. The yield on benchmark?U.S. 10-year notes increased 3.03 basis points, to 4.688%.
The dollar index (which measures the greenback versus a basket including the yen and the euro) rose by 0.15%, to 99.79. Meanwhile, the euro fell by 0.11%, to $1.1545.
Investors were wary about any possible intervention, but the Japanese yen fell 0.75% at 158.97?per dollar.
A summary of the opinions expressed at their July meeting by Bank of Japan policymakers showed that they were concerned about rising inflation, which could lead to a quicker-than-expected rate of interest rate hikes. This strengthened the case for an increase in September. Reporting by Chris Prentice, Harry Robertson, and Wayne Cole, in New York; Editing by Sharon Singleton and Jan Harvey, and Andrew Heavens
(source: Reuters)