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Study shows that firms issuing green bonds are better at tackling carbon emissions
New analysis by the Bank for International Settlements shows that companies who issue green bonds are better at reducing greenhouse gas emissions. This is especially true in sectors with high levels of pollution. The study, published on Tuesday, evaluated the impact of the green bond market which is a near $3 trillion market where companies raise money for projects to limit climate change and benefit the environment. The study found that the total emissions of green bonds issued in the four-year period following issuance fell by over 10%. Emissions per unit of revenue, a measure for emissions intensity, also dropped by 30%. The study stated that "the results show that the issuance of green bonds is associated with significant reductions in subsequent GHG emission levels by firms." The study acknowledges concerns about "greenwashing" by corporations, but it also says that the growth of the green bonds market in recent years and the increasing number of governments issuing them has increased transparency. Most companies tend to issue a small amount of green bonds compared to their size. This means that they are usually not the main driver of emission reductions. The report concluded that they can be a "good signal" for a company to know where it is going. One year after the first green bond, "Scope 1 emissions" such as fuel burned in a company’s furnaces or in its fleet of vehicles decreased in average by 21%. The same results were seen for Scope 1-3, which includes emissions that are less under the control of a company such as those in its supply chain. The intensity of direct emissions remained lower even after three year. The study used S&P Trucost Data, which it is estimated accounts for two thirds or more of global greenhouse gas emission. These emissions are not only geographically diverse, but also concentrated primarily in countries that have a large manufacturing sector and high energy intensity, like China, Japan, India, and the United States. The research shows that it is often "heavy emitters", who reduce their emissions, after issuing green bond. The study stated that "given the skewness in carbon emissions, it is critical to achieve 'net zero objectives' for society."
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Aluminum premiums for US customers hit record high after Trump doubles tariffs
The premiums that consumers pay for aluminium purchased on the physical market of the United States reached record levels on Tuesday, after President Donald Trump announced he would double the tariffs to 50% on Canadian metal. As a result of Ontario, Canada, imposing a 25% tariff, the doubling of the levies will take effect on Wednesday. On the physical market, consumers typically pay the London Metal Exchange benchmark price for aluminium plus a premium to cover taxes, transportation and handling costs. The traders predict that premiums will rise in the future as producers try to pass on as many of the additional costs associated with tariffs as possible. Most of the primary and alloyed aluminum shipped to America comes from Canadian smelters. Aluminium is essential for transport, packaging, and construction industries. Trade Data Monitor (TDM) reports that about 70% of the aluminium alloys and primary exported to the United States in the past year came from Canada. Analysts calculated that the 25% tariff would have required a premium of 47 cents per lb, or more than $1000 a ton, to cover extra costs to sellers. The U.S. Midwest duty paid aluminium premium increased to 45 U.S. Cents per lb or more than $900 a metric tonne on Tuesday. This is a nearly 20% increase from Monday. The price has increased by more than 70% from the beginning of 2025. Trump, during his former presidency in 2018, sought to use aluminium tariffs to encourage investment. Analysts were skeptical that investors would spend large sums of capital to build aluminium smelters, given the fact that they take longer to construct than political elections cycles. Macquarie analysts wrote in a report last month that "U.S. Primary Aluminium Production has seen a sequential drop over the past 20 years due to thin or negative margins. The implementation of tariffs has not helped the local supply recover sustainably." Sources in the industry say that while premiums have increased for U.S. consumers, they will likely continue to fall elsewhere due to aluminium being diverted from countries with import taxes. In Europe, duty-paid physical premiums have dropped to $240 per metric ton. This is the lowest level since January of last year. Since the beginning of 2025, it has dropped by more than 35 percent. Reporting by Pratima Dasai Editing and reporting by Eric Onstad David Goodall, Barbara Lewis
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Global stock markets continue to fall without any clarity on tariffs and the economy
After a sharp drop on Monday, stocks fell again on Tuesday. However, the pace was slower. This is because U.S. president Donald Trump announced that he would double tariffs for Canadian metal imports. This fueled fears of an economic recession caused by tariffs. The U.S. Treasury yields rose along with the oil price, even though Trump announced on Tuesday that he instructed his Commerce Secretary to impose an additional 25% on all steel and aluminium imported into the United States by Canada. This would bring the total tariff for these products to 50%. The S&P 500 saw its largest one-day percentage decline since September 2022, and the Nasdaq experienced its biggest drop in a single day. The reaction was a response to President Trump’s Fox News interview from the weekend, where he refused to rule out a possible recession due to his trade policies and spoke of a "period transition." In addition to the concerns over tariffs, the data released on Tuesday showed that U.S. small business confidence fell for the third consecutive month in February. This erased much of the gains made in the wake of Trump's election victory in November. Phil Blancato of Osaic Wealth, New York's chief market strategist, said that the guidance given by Delta Airlines and retailer Kohl's would indicate a future softening in consumer spending. Blancato said, "You're not seeing the dead cat bounce that you would want after a bad day like yesterday." You're not seeing many bottom feeders yet. The headlines are still unclear. "There's a lot more uncertainty in many areas, and this is leading to a shortage of buying power among institutions." Blancato said that while investors are hoping to get some clarity about tariffs in early April, they will also be anxiously awaiting the U.S. Consumer Price Index reading for February on Wednesday for information regarding inflation conditions. The data for last month was hotter than expected, with the largest monthly price increase since August 2023. The Dow Jones Industrial Average fell 483.32 points or 1.15% at 41,428.39. The S&P 500 dropped 40.90 or 0.73% to 5,573.66. And the Nasdaq Composite lost 47.75 or 0.27% at 17,420.81. The MSCI index of global stocks fell 6.31 points or 0.76% to 826.42. The pan-European STOXX 600 fell by 1.8%. The yields on U.S. Treasury bonds have steadied after falling to a five-month low earlier in the session. The yield on the benchmark 10-year U.S. notes increased 3.6 basis points from late Monday to 4,249%. The 30-year bond rate rose by 4.1 basis point to 4.5804%. The 2-year note yield, typically moving in line with expectations of interest rates for the Federal Reserve rose by 0.8 basis point to 3.904% from 3.896%. The U.S. Dollar rose to an all-time high of one week against the Canadian Dollar, while the Euro reached a four-month-high against the Greenback amid hopes for a German defense spending agreement. The Canadian dollar fell 0.26%, to C$1.45 for every U.S. Dollar. The dollar gained 0.09% against the Japanese yen to 147.39. The pound rose 0.51% to $1.294. The dollar's weakness helped oil prices rise, but gains were limited as worries about a U.S. economic slowdown and tariffs had an impact on the global economy. U.S. crude climbed 1.17%, to $66.80 per barrel. Brent rose 1.21% to $70.12 a barrel. The gold price rose after a sell-off in the previous session. Spot gold was up 0.92% to $2,916.10 per ounce, and U.S. Gold futures were 0.81% higher, at $2914.50 per ounce. Bitcoin gained 2.36% in cryptocurrencies to $81,151.44. (Reporting from Sinead carew in New York; Alun in London; Ankur Banerjee, in Singapore; Alun in London; additional reporting by Dhara Raasinghe, Kirsten Donovan, Alexandra Hudson)
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Who are the separatist Baloch militants in Pakistan responsible for hijacking trains?
Separatist militants from the Baloch Liberation Army claimed to have taken hostages in an attack on a train that carried hundreds of people including paramilitary forces, on Tuesday, and threatened to kill those who were still alive. Beijing has invested in Gwadar's deep-water port, among other projects. The BLA is one of the most powerful insurgent groups in the region bordering Afghanistan and Iran. The militants, who were previously engaged in a low-level conflict, have intensified their attacks in recent months using new tactics in order to cause a high death toll and injure many others. They also target the Pakistani military. The group has also targeted Chinese interests. What are the BLA's goals? The BLA is seeking independence for Balochistan. This province, located in Pakistan’s southwest, borders Afghanistan to the north as well as Iran to the West. The group is the largest of several ethnic insurgents that have fought the federal government over decades, claiming it unfairly exploits Balochistan’s rich mineral and gas resources. Insurgents are fighting for local resources that they claim belong to their own people. Balochistan’s mountainous border area serves as a haven for insurgents from Balochistan and jihadist militants. How has it become more lethal? In 2022, the BLA stunned the security establishment of the country when it stormed military and naval bases. The country has used suicide bombers in attacks on Chinese nationals in a university in Karachi, and in a bombing attack in southwest Balochistan. Last week, an umbrella group for several Baloch ethnicities announced that they had gathered all factions to try and unite them into a single military structure. In recent weeks, a dormant BLA-splinter group known as BLA (AZAD), which was previously inactive, has become active. What are the BLA's targets? BLA has targeted infrastructure and security forces in Balochistan but also in other areas, most notably in the southern port city Karachi. Insurgents accuse Beijing of aiding Islamabad in exploiting the province, and specifically the strategic port Gwadar, located on the Arabian Sea. The militants have attacked the consulate of Beijing in Karachi and killed Chinese nationals working in that region. Separately, the BLA was at the center of the tit-fortat attacks last year between Iran, Pakistan, and other neighbours over what they called militant base on the territory of each other. This brought the neighbours to the brink war. BALOCHISTAN’S SIGNIFICANCE Balochistan forms an important part in China's $65 Billion investment in the China Pakistan Economic Corridor. This is a wing to President Xi Jinping’s Belt and Road Initiative. The area is home to several key mining projects. One of these, Reko Diq (run by mining giant Barrick Gold, ABX.TO), is believed to be the largest gold and cobalt mine in the world. China operates a copper and gold mine in this province. Pakistan's plan to tap untapped resources has been hampered by the insurgency that has lasted for decades and continues to cause instability. Pakistan's largest by area but its smallest by population. Balochistan has a coastline that stretches along the Arabian Sea, close to the Gulf's Strait of Hormuz shipping lanes. Many of the women activists protested at Islamabad and Balochistan against alleged security force abuses - allegations that the government denies. Islamabad claims that India and Afghanistan are supporting militants in order to harm Pakistan's relationship with China. Both countries deny this accusation. Reporting by Asif Shazad from Islamabad, and Saud Mehsud from Dera Ismail Khan. Editing by Aidan Lewis & Ed Osmond
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Goldman Sachs predicts surge in US net copper imports
Goldman Sachs stated in a Tuesday note that U.S. copper net imports may increase by 50 to 100 percent in the next few months, due to the higher U.S. price before the Trump Administration's planned tariffs. After the U.S. started an initiative, the May 2025 U.S. Copper price currently trades at $756 per ton above the global benchmark London Metal Exchange price (LME). investigation The bank said it would look into possible tariffs for copper imports in order to rebuild U.S. manufacturing. Goldman Sachs predicts that a 25% duty on copper imports will be implemented by the year's end, causing a surge in imports, and an increase of 200,000 to 300,000 tons in U.S. inventories at the end the third quarter. Bank said that the higher U.S. prices is expected to increase U.S. Copper stocks from 95,000 to 300,000 to 400,000 tons by the third quarter. The bank said that this would represent 45-60% global inventories and leave very low inventories in other countries. Goldman Sachs forecasts an 188,000-ton global deficit on the copper market in 2025, due to robust electrification demands, China's stimulus and a slower growth in mine supply, which is expected to be concentrated during the second half due to seasonal factors. Goldman Sachs stated that they "maintain our forecast" of the LME 3-month average price at $10,200/t by 2024 Q3. They see the impact primarily in the timespreads. We forecast a maximum backwardation of $350/t LME from Sep to Dec, based upon the LME backwardation reaching a level which will close the U.S. Import Arbitrage. As of 1505 GMT, the price for three-month copper was $9,623.5 per metric ton on the LME. (Reporting and editing by Margueritachoy in Bengaluru)
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Ontario Premier says he won't back down until Trump's tariffs have been removed
On Tuesday, the Premier of Ontario who imposed a 25 percent surcharge on exports of electricity to the United States said that he wouldn't back down until U.S. president Donald Trump removed his tariffs against Canadian imports. Doug Ford reiterated his threat from Monday and said that he wouldn't hesitate to reduce the supply if necessary. Ontario exports electricity to 1.5 million homes across New York, Minnesota, and Michigan. We will not retreat. We will not back down. Ford apologized to the American public for President Trump's unprovoked attacks on our country. This was shortly after Trump announced he would double the tariffs on steel and aluminum imported from Canada. Generators selling electricity in the U.S. are now required to charge a surcharge of 25%, equivalent to $10 per megawatt hour. Ontario estimates that the surcharge would generate revenues of C$300,000.00 to C$400,000.00 ($432,346 up to $576.462) per day. Ford responded in an interview with CNBC when asked about the possibility to cut off power completely: "Is that a tool we have in our toolkit? 100%. "I won't hesitate as long as he continues hurting Canadian families and Ontario families." Bill Berkrot and David Ljunggren edited the report.
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Petrobras, Brazil's drilling vessel operator, will remove corals from the drilling vessel that will be used in Foz do Amazonas
Documents seen by revealed that Brazil's Petrobras had received approval from the environmental agency of the country to remove corals from undersides of the drilling vessels it intends to use in Foz do Amazonas. Monday, the firm's request for a vessel to drill off of the coast of northern Amapa State was granted if the firm obtains the long-sought exploration license in the environmentally sensitive area. Corals are a potentially invasive specie if they were moved to another biome. This process must be supervised by Ibama - Brazil's environmental agency. Petrobras considers the Equatorial margin as the most promising frontier in oil exploration. Petrobras hopes to start drilling this year if the license is granted. Petrobras' plans to drill were again thwarted last month when Ibama’s technical staff recommended that the body deny a drilling license in the northern part of the Equatorial Margin. This area shares the same geology as nearby Guyana where Exxon Mobil has developed huge fields. Petrobras' exploration head Sylvia dos Anjos told the CERAWeek Conference in Houston on Tuesday that the company is "optimistic". Ibama, in May 2023 denied Petrobras’ request for an offshore oil drilling license off the coast Amapa State, citing concerns about the environment. Ibama has yet to make a final decision on the appeal filed by Petrobras. (Reporting from Fabio Teixeira, Rio de Janeiro. Additional reporting by Marianna Pararaga, Houston. Editing by Bill Berkrot.)
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Trump doubles tariffs on Canada's metals
On Tuesday, President Donald Trump doubled the planned tariffs on steel and aluminum imports from Canada. This was in response to Ontario's decision on Monday to impose a 25% tariff for its electricity exports into the U.S. Trump posted on his Truth Social media page that he had instructed his Commerce Secretary to impose an additional 25% tariff for metals products. The new tariff will be in effect Wednesday morning. "Canada must also immediately remove their anti-American Farmer tariff of 250% to 390 % on various U.S. Dairy Products, which is long considered outrageous. "I will declare a National Emergency on Electricity in the affected area," Trump wrote. He also threatened "substantially increasing" tariffs on vehicles coming into the U.S. starting April 2, "if other egregious and long-standing Tariffs from Canada are not likewise dropped." In a message posted on X after Trump's latest threats, Ontario Premier Doug Ford – whose government is raising the price of electricity it generates in parts of New York State, Michigan, and Minnesota – said he wouldn't back down until Trump's tariffs against Canadian imports into the U.S. are "gone for ever." Investors are worried that the tariffs will harm U.S. economic growth and ignite inflation. The S&P/TSX composite index of the Toronto Stock Exchange was down by about 0.5%, and the Canadian Dollar fell against the dollar. Early on Wednesday, a 25% levy on all steel and aluminium imported into the U.S. will be increased. These tariffs will be applied to millions of tonnes of steel and aluminium imports from Canada and Brazil. They also apply to South Korea, Mexico and other countries which had previously entered the U.S. without paying duty. Trump has promised that tariffs would be applied "without exemptions or exceptions" to help struggling U.S. businesses. Since taking office, Trump has focused his attention on tariffs in a way that has shaken investor, consumer and company confidence. Economists are increasingly concerned about the possibility of a recession. The small business survey released on Tuesday revealed that sentiment has weakened for the third consecutive month, erasing any confidence boost Trump received after his November 5th election win. Last week, economists polled showed that risks for the Mexican economy are increasing amid chaos in the implementation of U.S. Tariffs. This has caused deep uncertainty among businesses and decision makers. In the surveys, 70 out of 74 economists from Canada, the U.S., and Mexico said that they believed the risks of a possible recession have increased. The upside risks of inflation in the U.S. also rose. (Reporting and editing by Dan Burns, Katharine Chiacu, and David Ljunggren; Additional reporting in Ottawa by David Ljunggren; Writing by Katharine Jackson; Editing by Paul Simao).
Asian stocks fall as the market selloff intensifies on US growth fears
Asian stocks followed Wall Street's lead and plunged sharply on Monday as fears mounted that a wide range of trade wars could dent U.S. growth and cause a recession. This led investors to seek refuge in the Japanese yen, a safe haven currency.
Investors' concerns over a potential economic slowdown have been exacerbated since President Donald Trump, in an interview with Fox News, talked about a "period" of transition while declining to say whether his tariffs will result in a U.S. economy recession.
These comments and concerns shook the risk-taking sentiment and sent stocks tumbling, weighing down on the U.S. Dollar and Treasury yields.
S&P 500 dropped 2.7% Monday, the biggest drop of this year. Nasdaq fell 4.0% on Monday, its largest percentage drop in a single day since September 2022. S&P 500 and Nasdaq Futures fell 1% during Asian hours on Monday.
In Asia it was a sea red, with Japan's Nikkei index and Taiwan's stocks falling about 3%. They reached their lowest levels since September. MSCI's broadest Asia-Pacific share index outside Japan dropped more than 1%.
Even Chinese stocks that have had a great year were not immune from the negative mood. The blue-chip index dropped about 1% while Hong Kong's Hang Seng Index fell 1.5%.
The European futures market also indicated a lower opening, with DAX Futures down by 0.8%, and Eurostoxx Futures down by 0.9%, suggesting that the selloff still had room to run.
Prashant Nnewnaha, a senior Asia-Pacific rate strategist at TD Securities said that the consensus was that Trump would be swayed if stocks plummeted.
The markets have understood that the administration intends to remove the bandage. Tariffs and recession could be the remedy to disinflation, and get that 10-year yield down. "For now, it's controlled demolition."
The yield on the benchmark 10-year U.S. notes dropped 5 basis points during Asian hours on February 2, after falling 10 bps the previous day, which was the biggest daily drop in nearly a month.
The yield on the two-year bond, which moves typically in line with expectations of interest rates for the Federal Reserve fell by 5 basis points to a new five-month-low.
LSEG data shows that traders now price in 88 bps easing by the Fed for this year. This is up from 75 bps Monday.
The Japanese yen rose 0.3% versus the dollar. The yen was last seen at 146.65 against the dollar, after reaching its highest level for five months in earlier session. In 2025, the yen will be up 7% compared to the dollar.
It also strengthened, and hovered near the three-month high reached on Monday. In early trading, it last purchased 0.87755 per US dollar.
Market sentiment has quickly shifted from optimism following the election to serious recession concerns, fuelled by policy uncertainty and a continuous stream of weak economic data, said Tony Sycamore.
Trump said that the possibility of reciprocal tariffs against Canadian lumber and dairy could be imminent.
The dollar index (which measures the U.S. money against six other currencies) was hovering near a 4-month low. The index is down over 4% this year.
Oil prices dropped for a second consecutive day on Tuesday, as traders worried that U.S. Tariffs could slow down economies in other countries and reduce energy demand. Meanwhile, OPEC+ increased its supply.
Brent futures dropped 0.65% to $68.83 per barrel while U.S. West Texas Intermediate Crude futures declined 0.82% to $55.49 per barrel. (Reporting and editing by Ankur Banerjee, Singapore.
(source: Reuters)