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Investors look at impact of attacks on Russian energy infrastructure to see if oil gains.
Investors weighed the impact of Ukrainian drone strikes on Russian refineries, which could disrupt Russia's crude and fuel exports. They also looked at U.S. fuel demand growth. Brent crude futures rose 3 cents, to $67.02 per barrel at 0009 GMT. U.S. West Texas intermediate crude crude was up 8 cents at $62.77 per barrel. Both contracts gained more than 1% last week as Ukraine stepped up attacks on Russian oil infrastructure, including the largest oil exporting terminal Primorsk and the Kirishinefteorgsintez refinery, one of the two largest refineries in Russia. In a note referring to the attack in Primorsk, JPMorgan analysts headed by Natasha Kaneva stated that "the attack indicates a growing willingness" to disrupt international oil market, which could add upward pressure to oil prices. Primorsk is the largest port of western Russia and has the capacity to load approximately 1 million barrels of crude oil per day. Surgutneftegaz operates the Kirishi refinery which processes approximately 17.7 million tons of Russian crude per year (355 000 bpd), or 6.4% of its total. Radiy Khabirov, the regional governor of Bashkortostan in Russia, said that despite Saturday's drone attack an oil company will continue to produce at its current levels. As U.S. president Donald Trump reiterated Sunday that he was willing to impose sanction on Russia, Europe must act in a manner commensurate to the United States. "Europe buys oil from Russia." Trump told reporters that he didn't want Europe to buy oil. "I don't want them to buy oil," Trump told reporters on Sunday. Investors will also be watching the U.S. and China trade talks that began in Madrid on Sunday, amid Washington's demand that its allies impose tariffs on imports of Chinese oil due to its purchase by China. The Federal Reserve will likely cut interest rates at its meeting on September 16-17. However, last week's softer data regarding job creation and inflation raised concerns over the economic growth of the U.S. (Reporting and editing by Muralikumar Anantharaman; Florence Tan is the reporter)
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Trump's visit to Britain will see the signing of a nuclear power agreement between the US and Britain
The British government announced that during Donald Trump's visit to the United States this week, Britain and the United States would sign an agreement to boost nuclear power together, which will help secure funding for new plants. The British government has been pushing to expand the use of nuclear energy in recent months. It has pledged to invest 19 billion dollars in a new Sizewell C plant and is advancing plans to have a Rolls-Royce division build Britain's first small-modular reactors. Trump will arrive in Britain on Tuesday for a 2-day visit, where he and Keir starmer, the Prime Minister of Britain, will announce their nuclear power partnership. The collaboration aims at accelerating new projects and investment, including plans that are expected to be announced from U.S. Nuclear reactor company X-Energy (and Britain's Centrica) to build up 12 advanced modular nuclear reactors in Northeast England. The statement also said that a 15 billion-pound project, powered by SMRs, to build advanced data centres in central England, at the former Cottam Coal-fired Power Station, was set to be announced soon by the U.S. firm Holtec International and France's EDF, along with real estate partner Tritax. Starmer stated on Monday that "these major commitments put us on a course for a golden age in nuclear power, which will reduce household bills over the long term." When Trump and Starmer met in Scotland at the U.S. President's golf club in July, they discussed working together more closely on SMRs. In a statement, U.S. Energy Sec. Chris Wright stated that "Today's deals will create a framework for commercial access both in the U.S.A. and UK". The new tie-up covers nuclear regulation. If a reactor passes safety tests in one country then the other can use those findings to support their own checks. This will reduce the licensing time from three to four to two years. Chris O'Shea, Group CEO of Centrica, commented on the new partnership with X-Energy. He said that it would create a low-carbon, resilient energy system. J. Clay Sell, CEO of X-Energy said Hartlepool is the best place to scale up its technology in Britain, given its skilled workforce and local service. Simone Rossi CEO of EDF UK said that the plan will benefit energy security. Holtec CEO Kris Singh stated that the plan will create thousands of jobs in Michigan by leveraging the lessons learned from the Palisades Project in Michigan. Rolls-Royce announced that it has entered the U.S. regulation process for its SMR. This could lead to new jobs and investments in the U.S. Urenco, a UK-based company, is expected to announce a deal to supply uranium of varying levels of enrichment to the U.S. ($1 = 0.7377 pound) (Reporting and editing by Helen Popper; Sarah Young)
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Australia faces cascading climate risks, government report says
A government climate report released on Monday said that Australia would experience extreme climate events more often - and sometimes simultaneously. This will put severe strain on the health and emergency services as well as critical infrastructure, primary industries and other sectors. The National Climate Risk Assessment Report warned that no Australian community would be immune to climate risks, which will cascade, compound and occur simultaneously. In a recent statement, Energy Minister Chris Bowen stated that "while we cannot avoid climate impacts any longer, every action taken today to achieve net zero by the year 2050 will help us avoid the worst effects on Australian businesses and communities." Bowen noted that the report is the first comprehensive assessment on the risks of climate change in Australia. It shows that the northern part of the country, remote areas and the outer suburbs of large cities are particularly vulnerable. Bowen stated that "Australians already live with the effects of climate change but it is clear that every degree of warming prevented now will help future generation avoid the worst impact in years to come." Bowen also announced a national adaptation plan, which would guide Australia's responses to the findings of the report. Bowen said that the plan would provide a framework to help federal, state, and local governments better coordinate their actions. Bowen stated that the government will announce the next step of its plans soon to reduce carbon emissions, and set an "ambitious and achievable target" for 2035. Since its election in 2022 the center-left Labor Government has invested A$3.6 billion (2.39 billion dollars) into climate-adaptation programs. It aims to reduce carbon emissions by 43 percent by 2030, and achieve net-zero emission levels by 2050. Clean energy advocates considered the previous conservative government to be a global laggard in its emission policies. Reporting by Peter Hobson and Renju José in Canberra; editing by Jamie Freed.
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Iraq signs joint operating agreement with France TotalEnergies and QatarEnergy LNG
The Iraqi Prime Minister's Office announced on Sunday that the Iraqi oil ministry had signed a joint operating agreement with France TotalEnergies and QatarEnergy LNG, as well as Iraq's Basra Oil Company. This deal relates to the operation of Artawi Oilfield as part of Gas Growth Integrated Project. The GGIP is an initiative by QatarEnergy and TotalEnergies in collaboration with Basra Oil Company. It aims to improve Iraq’s electricity supply. The GGIP also includes renewable energy project. QatarEnergy released a statement shortly afterwards, stating that the CEO of the company and State Minister for Energy Saad al-Kaabi had met with Iraqi Prime Minster Mohammed Shia al-Sudani on Sunday and TotalEnergies' CEO Patrick Pouyanne to announce the beginning of construction of phase two of the Artawi Oil Field Development Project and the Common Seawater Supply Project. According to a Qatari press release, the CSSP will process and transport up to 5 million barrels per day of seawater to the main oilfields in southern Iraq. TotalEnergies and ENKA Construction, a Turkish company, signed a separate deal to build a central oil-and-gas processing facility in Iraq. The facility will have a daily capacity of 210,000 barrels and 163 millions standard cubic feet. TotalEnergies signed a deal with China's Petroleum Engineering & Construction Corp to build a plant for gas processing in southern Iraq. The plant will have a capacity of 600,000,000 standard cubic feet/day. The French company has also signed a contract with Hyundai Engineering and Construction of South Korea to build a seawater-treatment plant in southern Iraq, with a capacity of 7.5 millions barrels per day. Sudani made a statement at the event to welcome the increase in foreign investment.
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Ukraine is considering limiting mobile services to counter Russian drones
Andriy Hanotov, the chief of the general staff of Ukraine, was quoted on Sunday as saying that Ukraine could intentionally reduce the quality mobile communications when Russian drones attack to prevent the networks from being used to coordinate attacks. In the last few months, Russia, three and a half year into the conflict, has intensified drone attacks against Ukraine, improving its technology and increasing drone deployments to maximize damage to strategic targets. Hnatov said to Ukrainian online video channel Novyny Live that the issue is not one of a disruption in mobile communications but a limitation on communication quality, such as a ban on 4G or 5G. He added: "So the modems that they use on their unmanned aircraft vehicles can't access the internet provided by our communication operators." Local media reports suggest that it makes sense to shut down mobile high-speed internet in order to combat drones with cameras which transmit images, and need a 4G connection for operation. During the war, Russia ordered frequent mobile internet shutdowns in order to stop Ukrainian drone attacks. (Reporting and editing by Helen Popper; Pavel Polityuk)
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U.N. condemns reported Haitian massacre that killed more than 40 people
The Secretary-General of the United Nations condemned Saturday an attack in which armed gangs killed at least forty people in a village of fishermen north of Haiti's Capital. Local media in Haiti reported widely that the attack occurred on Thursday night in Labodrie. This is another sign that gang violence has escalated outside of the capital. The United Nations released a statement saying that the Secretary-General was alarmed at the level of violence in Haiti. He urged the Haitian authorities "to ensure perpetrators of all human rights violations and abuses are brought to trial." A spokesperson from the National Police refused to comment on these alleged murders. Local media reported in Haiti that gangs had set Labodrie ablaze after the death of a local leader by the name Vladimir. He was a part of a gang coalition known as Viv Ansanm, which the U.S. designated a terrorist group in May. The U.S. State Department stated that the Viv Ansanm Alliance is one of the main causes of violence and instability in Haiti. The alliance's members have taken over large areas of Port-au-Prince, and the surrounding area. (Reporting and editing by David Gregorio; Emily Green, Harold Isaac)
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Governor of Bashkortostan, Russia says oil company will continue production after drone attack
Radiy Khabirov, the regional governor of Bashkortostan in Russia, said that a company producing oil will continue to produce despite an attack by drone on Saturday. Ukraine intensified its attacks on Russian energy infrastructure to weaken Moscow's military capability, while peace negotiations are still stuck. The attack caused a fire to break out at an oil refinery operated by Bashneft. Rosneft is Russia's biggest oil producer. Bashneft operates four major oil and petrochemical refineries in the area. Khabirov didn't specify the facility that was targeted. Both drones that were downed fell onto the property of the company. In the first instance, a small flame broke out and was quickly put out. In the second instance, the supply was cut off of technical water," Khabirov stated on Telegram. He said that the plant will continue to function normally and there will be no production reductions or operational stops. In his statement, he did not mention Ukraine. Unverified footage circulated on local Telegram channels, showing an object flying in the facility followed by a fireball. Ufa is approximately 1,400 km (870 miles), or roughly, from the Ukrainian border. Reporting by Lucy Papachristou Editing and Peter Graff
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US Energy Council Chief: Future Offshore Wind Projects Unlikely
U.S. Interior Secretary and Energy Council Chief Doug Burgum has said that it is not likely that there will be future offshore wind projects built in the country under the current Trump administration.During the Gastech conference in Milan, Burgum said the renewable power from offshore wind is ‘just too expensive and not reliable enough’.“We are taking a deep look. There are five projects that are under construction and we’re taking a look at each of those,” Burgum said.When it comes to the solar power, and future projects, Burgum noted that for such projects, solar panels will have be produced by the U.S. itself,He also said during the Gastech conference in Milan that if there was to be a future for solar power in the United States, panels have to be made by the U.S. itself or its allies, and not China, due to reported ‘kill switches’ installed in the equipment supplied by the country.
What matters most to world markets in a tight US election race
The U.S. governmental election, the most substantial vote for financial markets in an electionpacked year, is weeks away.
With Democratic Vice President Kamala Harris and Republican Donald Trump locked in a close race to win the Nov. 5 election, we take a look at what matters most for world markets.
EUROPE IN THE BALANCE
For European equity markets, a Trump triumph might spell trouble for export-heavy sectors, especially German car manufacturers such as BMW but likewise LVMH and other luxury items makers as issues of restored trade stress loom.
Barclays has actually cautioned of possible high single-digit portion drops in European profits need to trade conflicts reignite. Trump has drifted plans for blanket tariffs of 10-20%. on virtually all imports to enhance U.S. manufacturing.
On the other hand, a Harris win would be a reasonably much better. result for European equities. This could stimulate sustainable. energy, a possible tailwind for utilities with big U.S. jobs like Orsted and Iberdrola.
Over the longer term, however, her plans to raise corporate. taxes from 21% to 28% might suppress margins for American companies and. European dollar earners alike. A further cut under Trump would. likely be invited on both sides of the Atlantic.
The election might have implications for the war in Ukraine. Trump and some Republican Politicians in Congress have actually questioned the worth. of U.S. funding for Ukraine's two-year fight versus Russia,. while Democrats have actually pressed to strengthen Ukraine.
Aerospace and defense stocks have acquired over 80%. considering that Russia invaded Ukraine in 2022.
CURRENCY SWINGS
Trade tariffs are crucial for traders on the planet's. most-actively traded currencies.
The euro, trading below September's 14-month peaks at around. $ 1.09, is viewed as remaining in the losing camp if a Trump. win ways higher universal tariffs.
A Trump win, in the eyes of the marketplace, would take. euro/dollar to the $1.05 location, whereas a win for Harris. would see the rate relocate the opposite direction, above $1.15,. stated BlueBay Property Management CIO Mark Dowding.
Geopolitical risks, particularly in the Middle East, that. set off a surge in oil costs and harm economic growth, likewise. make the euro vulnerable, analysts stated.
ING included that a Trump win might also hurt the Australian. and New Zealand dollars-- currencies of economies depending on. trade from China, a main target of higher tariffs. Around 37% of. Australia's and 29% of New Zealand's exports land in China, ING. noted.
The Swedish and Norwegian currencies were likewise seen as. susceptible to worldwide trade characteristics, while Canada's dollar could. suffer if a Harris win is viewed negatively for the U.S. economy.
CHINA LIVE ROULETTE
Among the greatest stakes gambles in global markets right. now is whether to place bets on China, where federal government stimulus. pledges have revived financier interest that might be canceled. out by tariff walkings or trade wars under Trump.
Investors expect Harris to pursue targeted tariffs and Trump. to lean towards more aggressive, disruptive policies.
If Trump wins, the (political) rhetoric towards Chinese. companies would be horrible, Edmond de Rothschild worldwide. equities manager Christophe Foliot said.
That would likely increase China scepticism amongst U.S. investors and magnify a trend for multinationals to remove. made-in-China elements from their supply chains, he added.
China deals with even more hits from a Trump administration. potentially cutting Chinese companies' access to brand-new. technologies, which would restrict efficiency, Oxford Economics. said.
And threat consultancy Eurasia Group said a Trump victory. would press EU countries to likewise decouple from China.
Goldman Sachs strategists approximate that Chinese stocks could. fall by 13% if Trump levies a 60% tariff on Chinese goods.
But threats of an export slump might also inspire Beijing to. follow up monetary stimulus with more considerable state costs. programs.
Potential new U.S. tariffs on Chinese items might increase. the intensity and durability (of stimulus), Goldman said.
EM ON THE LINE
Emerging market (EM) equities are, on paper, prepared to shine. after underperforming their developed-world peers for the better. part of a decade. The U.S. Federal Reserve has actually begun rate. cuts and the dollar, food and fuel rates are falling-- huge. increases for importing nations.
Investors state that a Harris win, indicating broad policy. continuity from President Joe Biden, could provide the assets a. tailwind.
But a Trump win, accompanied by worldwide tariffs, might come. down hard on any extreme optimism. Most investors state Mexico,. with strong U.S. trade ties, has the most to lose; those wagering. on a Trump win often switch on Mexico's peso.
JPMorgan cautioned financiers to remain neutral till the U.S. election risk has passed, and UBS alerted that the highest Trump. tariffs threaten losses of as much as 11% for EM equities in 2025.
The Swiss bank also said that its EM Threat Hunger index is. near 15-year highs, suggesting financiers are not fully prices. in the drawback risk of Trump tariffs to EM possessions broadly.
(source: Reuters)