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US Judge orders Argentina to transfer YPF Shares to satisfy $16.1 Billion judgment
A U.S. court judge ordered Argentina on Monday to give up 51% of its stake in the oil and gas company YPF to satisfy a $16.1-billion judgment against it. U.S. District Court Judge Loretta Preska, in Manhattan, said Argentina had to transfer its YPF share within 14 days into a BNY Mellon account and instruct this bank to transfer those shares to the plaintiffs within one business day. Argentina appealed Preska's decision of September 2023 to award $16.1 billion to Petersen Energia Inversora, Eton Park Capital Management and litigation funder Burford Capital. Preska's ruling came the same day Argentina requested that the High Court of London block the enforcement of the judgment. The case arose after Argentina seizes the 51% stake in YPF held by Spain’s Repsol without tendering shares held by minor investors. Burford said that it expects to receive between 35% and 73% respectively of Petersen and Eton Park damages. Reporting by Jonathan Stempel, New York Editing Mark Potter
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India extends met coke import restrictions for six months
A government order announced on Monday that the Indian government had extended its import restrictions on low-ash coke (a raw material for steelmaking) by six months, starting in July. This was a major blow to steelmakers, who opposed restrictions on overseas purchases. The order stated that India, the second largest crude steel producer in the world, would set country-specific imports quotas, and limit purchases to 1.4 million metric tonnes from July 1 through December 31. In February, it was reported that India would be willing to extend the restrictions on met coke with low ash imports in order to encourage steel mills locally to purchase from domestic suppliers. In May, it reported that India's Steel Ministry was in favor of extending the restrictions. Major steel producers such as ArcelorMittal Nippon India, and JSW Steel are concerned about the curbs. They claim that they will hinder their expansion plans, because it's difficult to find preferred grades locally. In April, India's Commerce minister Piyush Goyal urged steelmakers in India to source metcoke locally. India also launched an anti-dumping investigation into overseas supplies low-ash metcoke from Australia and China. It has also opened an inquiry in response to a request by an industry group. China, Japan and Indonesia are the major raw material suppliers. Poland, Switzerland, and Poland also contribute to the imports. Reporting by Neha Meenaktshi and Harshita Arora. (Editing by Susan Fenton, Mark Potter and Mark Potter.)
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US rejects UN summit, but global leaders vow development push
The first ever summit of its kind began in Seville on Monday in scorching temperatures, with the world leaders increasingly under pressure to reduce poverty and limit Climate change Other key development goals are increasingly in danger. U.N. Chief Antonio Guterres stated that the event was intended to "repair and rev up" an international system in which "trust is fraying, and multilateralism has been strained." This was a jab at the most notable absence from the conference - U.S. president Donald Trump. The world's biggest economy and its traditional largest aid donor, refused to take part in the conference after refusing to support the summit's action plan hammered over the past year. Emmanuel Macron, the French president, also took a shot at his American counterpart. He called the decision to launch a trade conflict at a time of such stress on the planet "an aberration". Barbados, Kenya France, Spain, and other countries made a series of announcements, including a plan to tax private jets, first class flights, and luxury cars. Guterres said that the Seville Commitment, at the core of the event, was a global promise to change the way the world supports the poorer countries. Pre-summit "outcomes" The agreement included a tripling of multilateral lending, debt relief, an effort to increase tax-to GDP ratios to 15% or more, and a shift of special IMF funds to countries in greatest need. Macron said that the World Bank, and other leading development banks, should be willing to sacrifice their high credit ratings in order to achieve these targets. Macron stated that multilateral development banks who "wish to maintain their triple-A credit rating without using guarantees instruments are wrong." "They must do more with their balance sheet." SYSTEM OVERHAUL Guterres stated that more than $4 trillion in funding per year is needed, and the key financial infrastructure of the world needs to be quickly retooled to make this happen. Guterres also said that the world development banks need to be reformated to increase their lending and attract private capital. This was tied to the need to reform credit rating systems around the world to make them fairer for developing countries who are trying to invest in projects to improve their fortunes. Guterres stated that "countries need and deserve" a system which lowers borrowing rates, allows fair and timely restructuring of debt and prevents debt crisis in the first instance. He cited a plan for creating a single debt register to increase transparency and efforts to reduce the cost capital through debt swaps.
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What is a "heat dome" and how does this power heatwaves in the summer?
On Monday, large parts of Western Europe experienced a severe heatwave. In Spain, temperatures reached 40 degrees Celsius. Scientists have said that the extreme temperatures across the region, including in Britain and the Netherlands, are related to the "heat dome" which has been forming over continental Europe. What does that mean? What is it? Heat domes are areas of high-pressured air that get stuck over a particular area because the atmospheric dynamics surrounding it prevent it from moving. The lid works just like the lid of a pot that is boiling. The system of high pressure traps the hot air beneath it. This heats up, and then compresses into a "dome". The heat is intensified and clouds are prevented from forming, so more sunlight can reach the earth below. The heat dome is characterized by clear, sunny, still days with little wind. The heat builds up with time. The longer the "dome", which is a dark surface, like a road or building, is placed over a certain area, the more the dark surfaces absorb and retain the heat. The heat also increases the likelihood of wildfires, as it dries up vegetation. These systems can last from days to weeks. Forecasts indicate that this high-pressure system will dissipate within a few weeks. This happens when another weather systems, such as storms or low-pressure systems with cooler conditions, pushes away the high-pressure. IS IT RELATED TO CLIMATE CHAIN? Heat domes aren't a new weather pattern. It would take a specific attribution study to determine how the heat dome that Western Europe is experiencing today was affected by climate changes. Scientists said that the severity and timing of this heatwave in Western Europe are consistent with the effects of climate change on heatwaves. Scientists have confirmed that climate changes is increasing heatwave events in intensity, frequency and spread. Over time, the average temperature of the Earth has risen due to the accumulation of greenhouse gases in the atmosphere. These emissions are mainly caused by the burning fossil fuels. The increase in temperatures at baseline means that, when a heatwave hits, the temperatures can soar to higher peaks. According to the national meteorological service AEMET in Spain, June was likely one of the hottest on record. Meanwhile, on Sunday, Mora, a town located in Portugal's southeast, set a national record high temperature of 46.6 C. The average global temperature today has increased by nearly 1.3 degrees Celsius in the past century since the Industrial Revolution, when countries started burning fossil fuels at industrial scale. Europe is the fastest-warming continent in the world, with temperatures rising twice as fast as the average global rate. Will we get more? Climate change causes extreme heatwaves to occur earlier in the season and last into the later months. In the past two weeks, parts of the United States experienced extreme temperatures due to a heat dome. Although it's difficult to predict heatwaves months ahead, the current seasonal forecasts indicate that Europe will experience a summer warmer than normal, according to Dr Samantha Burgess of EU's Copernicus Climate Change Service. (Reporting and editing by Andrew Heavens; Additional reporting by Ali Withers, Kate Abnett).
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Stocks reach new record highs on the back of trade optimism
On Monday, global stocks rose on the hope that U.S. Trade Negotiations with Key Partners would continue to advance. Meanwhile, the dollar fell and was on course for its worst performance in more than 50 years during the first half. Canada has halted the digital services tax that was to be imposed on U.S. tech firms, just hours before its scheduled implementation. This is part of an effort to move forward with stalled negotiations between Washington and Ottawa. Mark Carney, the Canadian Prime Minister, and Donald Trump, President of the United States will try to reach a trade agreement by July 21. This is an extension to Trump's July 9 deadline on "reciprocal tariffs". Officials have said that most deals can now be completed by Labor Day, September 1, although the July 9 deadline is still valid for other countries. Scott Bessent, U.S. Treasury secretary, said on Monday that countries should "be aware" that Trump could return to the April 2 tariff levels, when he announced a range of harsh duties against nations around the world. He also stated that any decision to extend negotiations will be made by Trump. Trump said the deadline could be moved. The markets are also thinking that the Fed may cut interest rates sooner rather than later. There are many factors at play," said Dennis Dick of Triple D Trading, in Ontario, Canada. Investors are confident in the market because they've seen some bad news, including some negative earnings reports. They buy back stocks immediately. Bulls are still in full control." Wall Street saw modest gains after the S&P 500, Nasdaq, and financial stocks closed at record levels on Friday. Utilities were the worst performers of the 11 major S&P sector. The Dow Jones Industrial Average increased 108.95, or 0.25 percent, to 43.928.53, while the S&P 500 gained 8.91, or 0.14 percent, to 6,181.98. And the Nasdaq Composite climbed 30.67, or 0.15 percent, to 20,302.84. Investors are likely to be watching a number of labor market reports during the holiday-shortened week. The government payroll report on Thursday will be the highlight. The report will be released a day earlier, and the U.S. Stock Market will close on Friday because of the Independence Day holiday. Some Fed officials have stated, including Jerome Powell as Chair, that the strength of labor market allows the central bank to delay cutting rates until it can better gauge the impact of Trump's tariffs on inflation. Raphael Bostic, President of the Federal Reserve Bank of Atlanta, said that the economy is yet to feel the full effects of Trump's tariffs. Investors also monitored the progress of the massive U.S. spending and tax-cutting bill that is slowly making its slow way through the Senate. The Republicans will attempt to pass the bill on Monday. The Congressional Budget Office estimates that the bill will add $3.3 trillion in debt to the United States over a ten-year period, putting foreign demand for U.S. Treasury bonds at risk. MSCI's global stock index rose 0.98 points or 0.10% to 915.73, and was on course for its third consecutive session of gains, after reaching an intraday high of 916.44. STOXX 600, the pan-European index, fell by 0.29% but is still on track for its second consecutive quarterly gain despite a drop of more than 1%. The dollar index (which measures the greenback in relation to a basket of currencies) fell by 0.14%, falling to 97.06; the euro rose by 0.24%, reaching $1.1747. The dollar has been struggling all year due to expectations that the Fed will be more aggressive about cutting interest rates in the coming year after Powell is replaced. The dollar has dropped 10.5% in the first half of the year, marking its largest drop since 1973 when the U.S. switched to a freely-floating currency rate. The yield on the benchmark U.S. 10 year notes dropped 0.8 basis points, to 4.275%. U.S. crude dropped 0.96%, to $64.89 per barrel. Brent was down to $67.55 a barrel on the same day. To read Markets and Finance news, click on https://www..com/finance/markets For the state of play of Asian stock markets please click on:
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Mali takes over abandoned gold mines from foreign companies
The government of Mali announced on the weekend that it had completed the takeover by Mali of the Yatela gold mines and the Morila abandoned gold mines. However, questions remain about how the value left in the mines can be tapped. The takeovers, and the failure to reveal how the operations would be funded, highlight the complex challenges that Mali faces as it seeks a way to gain control over its natural resources while leveraging high commodity prices in order to boost its economy. This is similar to the moves made by other West African countries such as Burkina Faso or Niger. Last year, Mali's military leadership, which took power following coups in 2020 & 2021, declared their intention to nationalise mines. Since taking power, the military government has pressed foreign mining companies by increasing taxes, revising contracts, regulatory crackdowns, and generally shifting from Western investors towards Russian interests. Mali is Africa's second largest gold producer, producing 65 tons per year. Gold prices have been strong in 2018, mainly due to tariffs imposed by President Donald Trump and geopolitical uncertainties. It has been difficult to make gold assets in Mali a successful investment. Yatela, a mine located in Mali’s western Kayes Region, was abandoned in 2016. Sadiola Exploration Company (a joint venture between South Africa’s AngloGold Ashanti & Canada’s IAMGOLD) determined that the low prices rendered operations unprofitable despite unexplored reserves. Firefinch Australia, which acquired stakes in mining giants Barrick Mining, and AngloGold Ashanti in the south Sikaso area, abandoned the Morila mine, in the same region, in 2022, leaving behind what was described in a government statement at the weekend as "significant financial and environmental liabilities". In a statement, the government did not specify how the mines would be operated or financed. But extracting the value of Yatela and Morila is not going to be easy while Barrick's complex mines are being reopened by the government. This month, the Loulo-Gounkoto Gold Complex of a Canadian company was taken over by the state in a major escalation to a long-running dispute about taxes and ownership. Reporting by Mali Newsroom Maxwell Akalaare Adombila Editing Robbie Corey Boulet and David Goodman
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Argentina asks UK Court to stop enforcement of $16 billion oil company seizure in case
The Argentinian Government has requested that the High Court of London halt the enforcement of a United States court judgement of more than $16 billion over the expropriation by the oil and gas firm YPF pending the outcome of an appeal filed in the U.S. In 2023, the South American nation was ordered to pay minorities shareholders $16 billion as a result of its seizure in 2012 of a 51 percent stake in YPF owned by Spain's Repsol. This occurred without any tendering by minority investors. Petersen Energia Inversora, Eton Park Capital Management and Burford Capital were able to win the case in a New York Court. They claim they are owed over $17 billion with interest of $2.5 million per day. The Argentina has filed an appeal against the U.S. judgment and is fighting to enforce it, including in London's High Court. David Railton, the country's attorney, argued that the English case be held until the U.S. court has decided its appeal. He said the investors would not suffer any prejudice as "there are no assets in this country against which the judgement can be enforced". Petersen Energia Inversora, Eton Park Capital Management and other companies that are trying to enforce the judgement elsewhere have accused Argentina of delaying enforcement. In court filings, their lawyer Paul McGrath stated that Argentina's request should be denied. However, he argued that in the event that the court decides to pause the case Argentina would be required to provide around $2.5 billion as security. This is the latest case in London involving Argentinian Debt. In a separate matter, the country was left with a bill of approximately 1.6 billion euros ($1.87billion) for GDP-linked Securities. Last week, creditors asked a U.S. Court to recognize the English judgement in that case. (Reporting and editing by Sharon Singleton; Sam Tobin)
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US Supreme Court dismisses Exxon’s appeal of $14.25 million air pollution penalty
The U.S. Supreme Court rejected Exxon Mobil Corp.'s attempt to reverse a civil penalty of $14.25m that a court imposed as part of a long-running case over air pollution in its Baytown, Texas crude oil refinery. Exxon asked the Justices to review the case, after a lower-court in December upheld a penalty that was the highest ever imposed in a citizen's lawsuit seeking enforcement of protections against pollution in the air under the landmark Clean Air Act. The lawsuit was filed by the Environment Texas Citizen Lobby in 2010 and the Sierra Club. It focused on Exxon’s Baytown operation, the largest petroleum- and petrochemical-based complex in the United States. The plaintiffs alleged that the facility regularly exceeded the limits set by the Clean Air Act for emissions of harmful air pollution, which affected the health and daily lives of those who lived and worked nearby. In 2017, Houston-based U.S. district judge David Hittner issued a $19.95m penalty to Exxon for pollution at the Baytown Complex between 2005 and 2013 The 5th U.S. Circuit Court of Appeals, based in New Orleans, threw out the penalty and ordered Hittner to reassess it. In 2021, the judge issued a new $14.25 million penalty. The 5th U.S. Circuit Court of Appeals, based in New Orleans, later threw the penalty out and ordered Hittner reassessment, resulting in a judge issuing a $14.25-million penalty in 2021, which was ultimately upheld by the appellate court. Exxon, in its appeal to the Supreme Court argued that plaintiffs did not have legal standing to bring the case, and that, like other federal appeals court, the 5th Circuit had used a novel standing standard that the justices must reject. Exxon stated that, under the 5th Circuit standard, plaintiffs seeking penalties in environmental cases for Clean Air Act violation may establish standing by demonstrating that the injuries suffered were the types of injuries that a defendant could have caused rather than those that are likely to be caused. Exxon asked the Supreme Court to use the lawsuit to overturn a 2000 ruling called Friends of the Earth V. Laidlaw Environmental Services Act. This case held that citizens could have standing to claim penalties under the Clean Air Act, even though penalties were paid to the U.S. Treasury. The Supreme Court is dominated by a conservative 6-3 majority. Its ideological makeup has changed since the 7-2 decision in that case. Clarence Thomas is the only justice currently serving to have participated in this case. He joined the late Justice Antonin Scalia's dissenting view, which stated that the case had been decided on "preposterous grounds".
Fashion brands slow down on green promises
Few fashion brands invest to reduce emissions from the supply chain
Suppliers struggle with low-carbon technology
Brands want to share the costs of production, not just loans
Tahmid Zami Tahmid Zami
Researchers, companies, and industry insiders claim that there hasn't been much done to move this forward in the supply chains of major textile producing countries such as Bangladesh, India, and Cambodia.
Todd Paglia is the executive director of Stand.earth in North America, a non-profit environmental advocacy group.
About a third (32 brands) of 42 brands that were surveyed for a Stand.earth Report in 2025 will have reduced their emissions by 10 percent compared to baseline years, while 40 brands will see their emissions increase.
The study found that only a small fraction of major brands provide funding to reduce emissions in their supply chain, which puts financial pressure on factories and other suppliers who lack the financial power to switch to cleaner processes.
Fashion Revolution, an organization that campaigns for sustainable fashion, released a report in 2024 stating that about half of major fashion brands around the world have set scientifically-based emission reduction targets.
While many brands are still not making visible efforts to fund their climate plans or support suppliers in decarbonising, others have made some.
"What we see is a dangerous disconnection," said MohiuddinRubel, former director of Bangladesh’s garment manufacturers' associations and now director at Denim Expert Ltd.
The FINANCING Gap
By switching to energy-efficient equipment, using renewable energy sources and using low-emission transportation, apparel manufacturers can reduce emissions at the factory level.
A report by the consulting firm FSG stated that in Bangladesh, the garment industry hub, 83% emissions come from the burning of fossil fuels on site, such as natural gas to generate electricity or to run boilers for heat and steam.
According to a report by the Apparel impact Institute (AII), an organization that promotes sustainable investments, many suppliers are reluctant to make the large capital investment required to replace gas-based heating systems with energy-efficient technology, such as heat pumps.
AII says that Bangladeshi fashion manufacturers face a $4.8 billion investment gap to reduce emissions by half between 2030 and 2020.
Clothing manufacturers in India and Vietnam face similar challenges to reduce their dependence on fossil fuels for heat and steam production, which is used in the washing, dyeing and finishing of fabrics.
According to Bangladeshi supplier Rubel, about half of the brands that Stand.earth surveyed offered some kind of support. However, most of this involved audits and assessments of carbon footprints or small-scale projects.
He said: "This is just a drop of water and doesn't address the industry-wide, systemic transformation that is required."
Abhishek Bhasal, the head of sustainability for Arvind Limited, an Indian textile supplier, says that brands should also offer long-term agreements with suppliers and premium prices to encourage them to invest in cleaner manufacturing.
BRAND ACTION
Stand.earth's report stated that only six brands had reported offering project financing to suppliers for their decarbonisation efforts. H&M is one of them, a Swedish retail giant that has helped 23 smaller suppliers invest in low carbon tech.
Kim Hellstrom is the senior sustainability manager for H&M. She said that brands need to accept there will be costs associated with climate change.
The retailer plans to test energy efficient thermal technologies in China, India, and Vietnam.
Hellstrom said, "The low carbon technology is already here. You don't have to talk about innovations - you just need to test them out first in this industry."
Kristina Liljas is the senior director for sustainable finance and engagement of AII. She said that if brands backed their goals with budgets, they would be able to establish better relationships with suppliers.
(source: Reuters)