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Cyprus President says that Cyprus is in talks with UAE about a European submarine cable project
Cyprus approached the United Arab Emirates to discuss possible collaboration on an EU-financed submarine power cable connecting Europe to the Eastern Mediterranean region. It said Monday that it was reaffirming their commitment to this project. Last Thursday, European prosecutors announced that they have launched an investigation to determine if criminal offenses may be committed in relation to the cable project to connect Greece to Cyprus and then to Israel. The three countries all support this project despite its delays. "To give just one example of this commitment, myself and my foreign minister went to the United Arab Emirates," Cypriot president Nikos Christodoulides said after comments made by Greek prime minister KyriakosMitsotakis on Saturday urging Cyprus clarify its position. "I met the president of the nation precisely to discuss this matter and to examine the possibility of a partnership to invest in areas related to this particular project." Christodoulides has not commented on the European investigation that was announced last week. The cable was built by Greek transmission company IPTO. It took over the project from a Cyprus operator who had worked on it for around a decade. The project promoters claim that the cable would be the longest high-voltage link in the world at 1,240 km (775,5 miles), and the deepest at 3,000 meters. Cyprus has sought clarifications about the total cost, viability of the project and the liability for any unforeseen delays. Reporting by Michele Kambas Editing David Goodman
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Saudi Arabia's GDP grew 3.9% in the second quarter
According to estimates by the government released on Monday, Saudi Arabia's GDP (gross domestic product) will grow 3.9% in 2025 due to non-oil sector growth. According to the Saudi General Authority for Statistics, non-oil activities grew 4.6% in comparison to the same period last year. The fastest growing sectors were electricity, water, and gas, followed by business, finance, and insurance. Oil grew by 3.8%, while government activities grew 0.6%. The oil activities grew the most compared to first quarter by 5.6%. On Sunday, the Saudi-led OPEC+ decided to increase oil production further as the kingdom tries to regain its market share. In an online meeting held on Sunday, the eight members of OPEC+ decided to increase production by 137,000 barrels a day from October. This is a much smaller increase than the monthly increases for September and August of approximately 555,000 bpd and 411,000 bpd between July and June. Oil prices have fallen by around 15% this year due to the increase in production. The prices haven't fallen, but are still trading at $65 per barrel. This is due to the sanctions imposed by the West on Russia and Iran. Saudi Arabia's economy is expected to be affected by the lower oil prices. The International Monetary Fund says Riyadh requires a price of over $90 per barrel to balance its accounts. Saudi Arabia has embarked on a costly transformation program called Vision 2030, which aims to wean its economy off of oil dependence. It is investing billions in sectors such as tourism, entertainment, and sports. Saudi Arabia's fiscal deficit in 2025 is expected to be around 101 billion riyals (about 27 billion dollars). Reporting by Pesha Magd; editing by Andrew Cawthorne
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Abu Dhabi's financial hub sees 42% increase in active companies
Abu Dhabi's financial centre reported a 42% increase year-on-year in the number of registered entities for the first half 2025. Global firms are looking to gain access to the powerful sovereign wealth fund in the emirate and to expand their presence in Gulf. Abu Dhabi Global Market reported an increase of 42% in assets under management from last June. The financial hub is now home to 154 asset and fund managers who manage a total 209 funds. ADGM is an English Common Law financial free zone. Abu Dhabi, the city that holds 90% of its country's oil reserves has intensified its efforts to diversify its economy beyond hydrocarbons. It is doing this by using its sovereign wealth funds which manage collectively nearly $2 trillion, more than any other place in the world. In recent years, the United Arab Emirates have become more attractive to high-net worth individuals and companies, due to their strong economic recovery following the pandemic, its tax-free environment and ease of doing businesses. Kimmeridge, Fortress Investment Group and Abu Dhabi sovereign wealth fund Mubadala are among the key entrants in ADGM for the first half of this year. The latter signed a $1 billion deal with Mubadala back in May. Lunate, a fund manager led by Sheikh Tahnoun bin Zayed (a royal family member and UAE national security advisor), acquired a minority stake in Brevan Howard in August. Brevan Howard is one of the world's first hedge funds to establish a global headquarters in ADGM, 2023. Sheikh Tahnoun is also the head of Abu Dhabi's biggest sovereign wealth fund ADIA. ADGM reported that the number of companies based in the centre had increased to 2,972 by June 30 from 2,381 as of the end of the month of December. The results of the centre come after the neighboring Dubai International Financial Centre announced a 25% increase in active companies year-over-year, reaching 7,700 by the end the first half. (Reporting and editing by Rod Nickel.)
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Gunvor: New sanctions against Russian oil buyers will disrupt flow, according to trader Gunvor
Frederic Lasserre said that new sanctions against buyers of Russian crude oil could disrupt crude flow, according to the global head of research and analyses at energy trader Gunvor, Frederic Lasserre. His comments followed after U.S. president Donald Trump, seeking to broker a resolution to the Ukraine conflict said he was ready to move into a second stage of sanctions against Russia in order to reduce the oil revenues and bring Vladimir Putin to the negotiation table. Treasury Secretary Scott Bessent stated on Sunday that both the U.S. & the European Union can impose "secondary tariffs" on countries that purchase Russian oil. India is the second largest buyer of Russian crude oil after China. Lasserre told the APPEC Conference that President Trump was serious about imposing tougher sanctions. He added that sanctions against Russia and Iran would have a negative impact on supplies of more than one million barrels per daily (bpd). "But, the issue is about the nature of sanctions... Today, if you do not impose any sanctions against the buyers, China and India, the rest is just rhetoric." Trump has said that India's oil exports help fund the war effort in Moscow and imposed a tariff of 50% on Indian imports. New Delhi says its purchases of Russian crude oil have helped to keep the market in balance, and has prevented global oil prices from rising. Nirmala Sitharaman, India's Finance Minister, said on Friday that India would continue to purchase Russian oil if it is cost-effective. Lasserre stated that the recent meetings and speeches by leaders from China, Russia India Brazil, at recent summts, indicate they will not accept "any further" sanctions. Last week, Chinese President Xi Jinping hosted over 20 leaders from non-Western nations for the Shanghai Cooperation Organization summit (SCO), including Russian Prime Minister Vladimir Putin and Indian Premier Narendra Modi. Putin and Modi held hands as they walked towards Xi, before the three men stood together. (Reporting and editing by Florence Tan, Mohi Naryan; writing by Nidhi verma; editing by Sonali Paul).
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Gold nears record high amid US rate cuts
Gold held steady near its all-time highest on Monday. It moved closer to the key $3,600 mark, buoyed by expectations that the U.S. Federal Reserve will cut rates this month after a weaker than expected jobs report last weekend. As of 0454 GMT, spot gold had not changed much at $3,583.41 an ounce. Bullion reached a record-high of $3,599.89 per ounce on Friday. U.S. Gold Futures for December Delivery fell by 0.8% to $3624. The main drivers are the U.S. job data and expectations that the Fed will cut by 50 basis point in September. The marginal change is a significant one compared to the situation before the employment figures, said Capital.com's financial market analyst Kyle Rodda. "Basically...all the tailwinds for gold are blowing at the moment, and despite an inflation shock in this week, we'll make a good check of $3,600." The U.S. unemployment rate rose to nearly four-year levels in August. This confirms that the labor market is softening, which will lead the Fed to cut rates next week. According to CME FedWatch, traders have priced in a rate cut of 25 bp this month. There is an 8% probability that the cut will be a 50 bp jumbo. Gold becomes cheaper when interest rates are lower. The Fed will now be focusing on the U.S. Inflation report due out on Thursday, which could provide more information on the expected size of its rate cut. Bullion prices have risen 37% this year, after a gain of 27% in 2024. This is due to the weakening dollar, central bank purchases, a softerening of monetary policy, and a wider geopolitical, economic, and political uncertainty. China's central banks added gold to their reserves in August. This is the 10th consecutive month that they have purchased bullion. Gold speculators increased their net long positions to 168.862 contracts in the week ending September 2. Silver spot fell 1% elsewhere to $40.57 an ounce. Platinum increased 0.2% to $1375.33 and palladium remained flat at $1109.50.
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China's coal imports in August hit an 8-month-high, but are still lower than the year-ago level
Customs data released on Monday showed that China's coal exports reached an eight-month peak in August. This was largely due to higher prices at home, but volumes were still below those seen a year ago. According to the General Administration of Customs, the country imported 42.74 millions metric tons of coke last month. This was the highest since December but down around 7% compared to August 2024. Toby Hassall is the lead analyst of LSEG's coal market. He said that "the rise in imports reflected a widened arbitrage as China’s domestic prices climbed following a reduction in coal production locally in July and a drawing down in Bohai Rim Port stocks." China's imports of coal have fallen year-over-year, as buyers have turned to the abundant and cheap domestic supply. To support the price, however, the authorities have set production limits since July. This has caused domestic coal production to drop to its lowest level in more than a year. According to an index published by the government, domestic coal prices rose to a six month high at the end August due to tightening supply. Import arbitrage became more profitable due to the surge in domestic coal prices. Since September, prices have decreased as the weather has cooled. In its half-yearly report, Shenhua Energy - the listed subsidiary of China's largest mining company - forecasts that imports will remain below the levels of last year through the second half. Customs data revealed that coal imports for the first eight-month period were down by 12% on an annual basis, at 299.94 millions tons. (Reporting and editing by Rashmi aich and Sherry j. Phillips; Colleen howe)
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What you need to Know about the Norwegian Election
The general elections in Norway on September 8 and 9 are expected to be close between the centre-left block led by the Labour Party and the centre-right group dominated by the Progress Party. Inequality and taxation are two of the key issues that will determine the outcome. The result could also have an impact on the energy and power supply to Europe, and the management and control of Norway's massive sovereign fund. What's at stake? Labour, led by Prime Minister Jonas Gahr Stoere, is seeking to extend its reign after returning to government in 2021. This follows eight years of Conservative governments. Labour led a minor government supported by the Socialist Left Party and the rural Centre Party. According to a Respons Analyse survey conducted for the daily Aftenposten between August 7-13, inequality is top of voters' concerns. Defence and national security have dropped to sixth place from a similar poll taken in April. The campaign has been dominated by cost of living issues and budgetary concerns, with the inflation rate in food prices at 5.9% over the past 12 months. According to the survey, voters also prioritized taxes, jobs, and the economy. Labour's allies, however, want to raise taxes on the wealthy in order to fund tax cuts for families with low incomes and expand public services. Both Progress and Conservatives advocate for large tax reductions. SOVEREIGN FUND Norway’s wealth fund of $2 trillion, built from oil and gas revenues, allows the government to spend more freely than other European countries. However, inflation and interest rate control are factors that limit spending. The debate about investments in Israel was at the forefront of the campaign and sparked a public discussion on how the world's biggest sovereign fund works. Last week, the Socialist Left said that it would support a Labour government only if they divested from companies that were involved in "Israel's illegal war in Gaza". Labour rejected this demand but it could be hard to reject such demands after the election. OIL AND GAS Norway has replaced Gazprom as Europe's largest gas supplier after the Russian invasion of Ukraine in 2022. Norway's importance is expected to increase as the European Union plans on phase-out Russian gas use by 2027. However, exploitation of new oil and gas resources is crucial to slowing production down. The influence of the Greens, Liberals, and other smaller parties could determine whether Norway opens up new areas for oil exploration or if it restricts them to the existing ones. It is unlikely that radical proposals such as stopping exploration altogether will receive enough support. Norway exports its surplus power to Europe. Some left-wing and rights-wing parties continue to campaign on the issue of limiting exports. This would cause problems for both the neighbours of Norway and Brussels. Norway may not be a member of the EU, but it is a part of the Single European Market and must follow its rules. Restriction of power exports would be a breach. The parties are divided on how to meet the growing domestic demand, which is eroding Norway’s surplus. In recent years, little new generation capacity has been added. The cost of wind on land, solar, and new hydropower is relatively low, and the construction process is quick. However, there are local protests about their environmental impact. Due to its high cost, offshore wind is controversial. HOW DOES IT OPERATE? Norway uses a proportional system where 169 legislators are elected for a four-year fixed term from 19 geographic districts. A party that receives more than 4% of the vote nationwide will be guaranteed representation. However, a strong showing within a district can also result in one or several seats. A majority of 85 seats is not expected by any party, so the most likely outcome will be a continuation of minority rule by Labour or the formation a coalition. Nine parties are predicted to gain seats, according to polls. On the left are Labour, the Socialists and the Greens. Labour's Stoere will remain in power if the centre-left party wins. If it is centre-right, either Progress Party leader Sylvi Listehaug, or Conservative Party chief Erna Solberg, could become Prime Minister. Results are expected to be known by the end of the ballot on 8 September at 1900 GMT. The results could be revealed late in the evening. However, the final result may not be known for several days. Negotiations after the election will determine which parties form the cabinet.
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Pacific Islands Leaders meet to discuss climate change, security
Leaders of the Pacific Islands began a seven-day summit in the Solomon Islands on Monday. They are expected to adopt a "Ocean of Peace", amid concerns over the rising tensions between China and the United States. Leaders are expected to support Australia's bid for the COP31 United Nations Climate Summit, after Canberra committed to working closely with its island neighbors to raise awareness about the challenges they face due to rising sea levels and worsening weather. Solomon Islands cancelled the participation of 20 donor partners including China, Taiwan, and the United States due to pressure from China to prevent Taiwan's involvement at the forum being held in Honiara. Three of the 18 members have diplomatic relations with Taiwan. Three have signed defence compacts with America. Several are French territories. Thirteen members of the forum have diplomatic ties with China. Australia is the largest member of the forum and is the biggest donor in the region. It has increased its efforts to stop China from expanding its presence in the area, following a 2022 pact between Beijing and the Solomon Islands. Anthony Albanese, Australia's prime minister, is expected to arrive at Honiara Wednesday after visiting Vanuatu. He is expected sign a landmark A$500m ($326.5m) deal strengthening economic and security links. Christopher Luxon, the New Zealand Prime Minister, said that his country was adamant about bringing the donors to the forum to discuss the development opportunities. However he added that the forum was still united. Reporting by Kirsty Neeham in Sydney, Lucy Craymer and Raju Gopalakrishnan in Wellington.
Oil prices rise as OPEC+ agrees on a slower rate of production increase from October
Early Monday morning, oil prices rose, reversing some of the losses of last week, after OPEC+ decided over the weekend that they would increase output at a slower rate than October, due to expectations of a weaker global market.
Brent crude rose 34 cents or 0.5% to $65.84 a bar by 0047 GMT. U.S. West Texas intermediate crude climbed 30 cents or 0.5% to $62.17 a bar.
The two benchmarks both fell by more than 2% Friday, as the weak U.S. employment report dimmed expectations for the energy demand. Last week, they lost more than 3 percent.
OPEC+ - which includes the Organization of the Petroleum Exporting Countries, Russia, and other allies - agreed on Sunday that oil production would be increased from October, as Saudi Arabia tries to regain its market share. However, the rate of increase will be slower than previous months.
OPEC+ increased production in April, after years of cutting to support the oil markets. But the decision to boost further output was a surprise because a possible oil glut is looming during the winter months in the Northern Hemisphere.
Eight members of OPEC+ are expected to increase production by 137,000 barrels a day from October, a far cry from the monthly increases that were about 555,000 bpd between September and August as well as 411,000 bpd during July and June.
Toshitaka Takawa, an analyst with Fujitomi Securities, said, "The oil markets rebounded a little, boosted by relief at OPEC+ modest production hike and a bounce in technical terms following last week's drop."
He added that the downward pressure will likely continue as OPEC+ increases production and supplies decrease.
Ukrainian officials reported that on Sunday, Russia had launched its biggest air strike of the war against Ukraine. It set the main government building in central Kyiv on fire and killed at least four people including an infant.
Donald Trump, the U.S. president, said on Sunday that he would invite individual European leaders to the United States to discuss the Russia-Ukraine conflict on Monday and on Tuesday.
After reporters asked him about the Russian air attack, Trump said he was "not pleased" with the current status of the war. He expressed his confidence in the end of the war.
The European Union will not change its plan to phase out Russian crude oil by 2028. This was the message from the EU's energy chief on Friday. He added that Washington had not pressed him to move this deadline forward. (Reporting and editing by Diane Craft, Jamie Freed and Yuka Obayashi)
(source: Reuters)