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German drywall manufacturer Knauf fails in its bid to sell Russia business
The German-owned Knauf Group, a family-owned construction material manufacturer, announced on Tuesday that its attempts to sell off its Russian business, which have been ongoing since April of last year, failed. In a press release, the family-owned business with sales of about 18,20 billion euros (15.6 billion euro) said that a prospective buyer who was not named had abandoned talks. The business will continue to be run separately by local management in Russia "in full compliance" with sanctions, it said. Knauf, which makes gypsum board, drywall and insulation slabs said that in April 2024 it was working to complete a deal to leave Russia. It has more than 4,000 workers and businesses there, including extraction of raw materials, manufacturing, and sales. The EU is looking for ways to increase its support for Ukraine, and countermeasures for Russia's attacks on its neighbouring nation. The work includes the use of frozen Russian assets in the West for Ukraine's defence, reconstruction and reconstruction following Moscow's invasion in Ukraine in 2022. Reporting by Ludwig Burger Editing Madeline Chambers
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Trump calls climate changes a scam; Science braces for further developments
By David Sherfinski Trump dismissed climate change last month as a "con-job"; now, his Department of Energy is telling its staff not to use language that contradicts the president's views about climate science. The Trump administration has taken a series of steps to ban, limit or dismiss climate change-related issues and phrases across the federal government. Jean Su, director of the energy justice program at Center for Biological Diversity (an advocacy group), said: "This is a big move for blanket censorship in science and on climate." When we erase these words, then we are actually erasing reports. We are erasing facts - since all those factual reports contain those types of words. The energy department has reportedly issued a memo listing a number of forbidden words, from "emissions", to "climate". However, the department denies that such a directive exists. The broader trend is alarming to proponents. Su stated that the situation was "severe and surprising lethal" for both our justice system as well as our advocacy. "It may seem like a few paper cuts, yet death by a million paper cuts is what we're facing right now." BANNED WORDS Politico reports that staff was given new instructions to avoid using phrases and words related to climate changes, which Trump called a "con" last month at the United Nations. After media reports of the "words not to use" memo, a spokesperson for DoE said that there was no order to staff to avoid certain terms. Dietderich stated that "President Trump, (Energy Secretary) Chris Wright and the White House remain committed to transparency as well as fostering a free and honest discussion about climate science." Politico reported first that an official from the Department's Office of Energy Efficiency and Renewable Energy sent an email with a "words to Avoid" list, such as 'climate changes', green and decarbonization. Media reports state that Rachael Ooverbey, acting director of External Affairs, gave the following directive: "Please make sure that all members of your team are aware of this latest list of words that should be avoided -- and that you continue to be diligent about avoiding any language that is misaligned to the Administration's priorities and perspectives." Other phrases that are not acceptable include: "energy transition", "sustainable", "dirty energy", a carbon footprint, and tax subsidies. Su pointed out that the fallout could be both practical and ideological. He cited past DoE initiatives to promote solar, wind, and hydro power as well as an ongoing departmental drive to study climate resilient. She said that such initiatives would "lose steam" if words were banned, and feared the department might instead "bring bad energy to the department". 'CON JOB' Since taking office in January 2017, Trump's administration is working to minimize or reduce the use of climate change-related terms and issues across all federal agencies. Experts in data say that climate information on official websites has been altered or removed. The Environmental Protection Agency, for example, is reversing a longstanding conclusion that greenhouse gases are harmful to the public's health. The administration also deletes and minimizes reams and reams web pages and data related to environmental justice and other issues. In a speech to the United Nations, Trump called climate change "the biggest con ever perpetrated against the world". He said that "all of these predictions, made by the United Nations, and others, for many bad reasons, are wrong." "They were made stupidly by people who have destroyed their countries' fortunes and robbed them of any chance to succeed." The scientific community is unanimous in its belief that human activity is accelerating global warming and is detrimental to public health.
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Trilogy Metals shares soar after US purchases 10% stake
Trilogy Metals shares tripled in value in premarket trade on Tuesday, after the White House announced it would buy a 10% stake. The U.S. listed shares were $5.69 and valued the company at just under $1 billion. Washington has taken equity stakes, in industries that it believes are essential for national security. These include critical minerals and semiconductors companies. This is part of President Trump’s policy to reduce China's reliance. The U.S. Government announced on Monday, after the markets had closed, that it would invest $35.6 million in Trilogy and received warrants for an additional 7.5% stake. The President Donald Trump signed a second executive order that directed his administration to allow construction of a road leading to the Ambler Mining District in Alaska, containing deposits of rare Earths. The court has overturned the order Biden administration's 2024 decision Blocking a 211 mile (340 km) stretch of road due to concerns that mining may threaten the caribou, fish and other resources vital to Native communities. Trilogy, an important developer in Ambler, has a joint venture with South32, Australia. South32 shares rose as high as 6.1% on Tuesday to reach their highest level since August 14. In a note, a group of Royal Bank of Canada analyst led by Kaan Peek said that the federal backing and executive order reduces political and regulatory uncertainties around the road/access of the Ambler Project. While the timing of the final permits, legal issues and first production is uncertain, we think this decision opens a major gating restriction; resulting in an increased probability for Ambler to reach development and therefore a higher option value for project. According to reports, Critical Metals and MP Materials are also being considered as part of Trump's new policy. Reporting by Johann M Cherian, Bengaluru. Editing by Tasim Zaid.
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Private credit cash shifts from the 'risky West' to emerging markets
Angola has a complex network of pipelines that snake along the Atlantic coast. They lead to a new refinery, which signals Angola's drive for energy independence. It also shows how private lenders are being used instead of banks to finance a large-scale project. "We are not the lender last resort," said Felipe Berliner. He is the co-founder and CEO of Gemcorp, a emerging markets asset management company that provided the majority of the funding for the refinery using private capital. "Sometimes, we are the sole lender." Veteran investors said that private credit for emerging market countries -- driven by investors’ hunt for yields, and saturation of developed Western markets -- may grow exponentially. This could provide tens or hundreds of billions as bilateral lending, and foreign aid, shrink. Pramol Dhawan is the head of emerging market portfolio management at PIMCO. "The need to global reallocate isn't a hedge - it's a long-term thesis." PIMCO expects to increase annual lending to $10 billion by 30% in this year. Other investors also aim to increase their investments. RAPID GROWTH BUT SQUEEZED Yields According to the Bank for International Settlements, private credit has skyrocketed in the last 20 years. Global assets under management have risen from $200 million to more than $1.2 trillion, up from $200 millions at the beginning of the 2000s. This funding helped fill a gap in financing for businesses, especially those based in the U.S. Today, emerging market countries receive less than 10%. The U.S., Europe and other developed markets are saturated. Margins have been eroded by competition and bets become more risky. The IMF and JPMorgan CEO Jamie Dimon both warn that private credit is shaky. Investors say that emerging markets have projects that are so eager for money, they can choose from a wide range of options. Matt Christ, portfolio director at Ninety One Global Investment Manager in London, said that emerging market companies are now more conservative. The developed markets are "priced to perfection", while the emerging markets offer greater upside. He said EM rates are 150-300 basis points higher than those of developed markets, and that risk is often lower as ratings suggest. Christ, whose global private credit portfolio is currently around $8 billion, believes that it has the potential to grow to $15 billion. He said that EM firms are accustomed to political and economic instability, unlike Western firms. He said: "Developed market firms are entering a new era, one they have never known before. But emerging market firms have been doing it for a very long time." Gustavo Ferraro is the head of capital solutions for Gramercy Funds, a fund manager that focuses on emerging markets. He also stated that EM returns and risk profiles are better than those in developed markets. He said that the U.S. stock market was no longer the benchmark. "Our (investors') desire yield and uncorrelated exposure." Gramercy's private credit investment has doubled in five years, to $4.8 billion. It is focused on Latin America and Turkey, as well as parts of Africa. Ninety One stated that private credit fills the gap in Turkey where banks are limited to lend due to the authorities' efforts at reducing inflation. From Sovereigns to Saudi Companies The majority of EM private credits are asset-backed, giving investors everything from shares in the company to control over a project. Structure favors infrastructure but funding is going to the sovereign budgets of Turkish cities and their transport networks. Angola will be able to refine 60,000 barrels of oil per day with the new refinery. Gemcorp and Sonangol, which are both funding sources, have contributed a large portion of this investment. The No. 2 oil producer in sub-Saharan Africa will be less dependent on expensive fuel imports. The first phase of the plant, which costs $475 million, should be operational by the end this year. Gemcorp also funded an wind farm on Lake Turkana, in Kenya. It also funded water sanitation projects in Angola as well as power transmissions between Angola & Namibia. Gemcorp's survey revealed that 67% of EM Private Credit went to large and medium corporations, while 22% was allocated to sovereign or quasi-sovereign project. Gemcorp has launched a fund of $1 billion aimed at mid-market Saudi firms. Berliner stated that "they are underfunded and they do not have the flexibility capital they need to sustain growth from the fiscal push of the government." The firm also finances Central American commodities exported to the U.S.A., West African prepayment fuel deals and gold producers. Private credit, according to Berliner and other experts, is fast, flexible and customizable. It can be tailored for any business, from upstarts to lower-rated sovereigns. "We are not replacing banks any more." Ferraro stated that "we're creating something new." This is custom financing for custom problems. "EM is a company with a wealth of experience." Some bond investors are privately concerned that private credit, which is more flexible and less burdensome than bonded debt, could hurt their business. Some bond investors fear that borrowers who run into trouble will have bigger problems. How does private credit handle a situation where something goes wrong? Daniel Cash, an associate professor of law from the UK's Aston University said, "We don't know." He added that the "much opaquer" lending could create problems.
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OPEC+ limits output for now as fears of an oil glut increase
Sources within the group stated that OPEC+ countries chose to only increase their November production modestly due to fears of a global glut. Non-OPEC oil supply is also increasing while fuel demand growth is slowing. The group announced on Sunday that it would increase its monthly production by 137,000 barrels a day in November. This is a continuation of the increases begun in April. Three OPEC+ source said that was the smallest option the group had discussed. They cited concerns over an upcoming surplus. OPEC declined comment. The Saudi Arabian government did not reply to a comment request. Jorge Leon, a former OPEC employee and Rystad Energy executive, said that "OPEC+ stepped cautiously after seeing how nervous market was becoming." Brent benchmark oil prices dropped 8% last week to less than $65 per barrel after media reports that OPEC+ would consider higher increases. Brent is now trading at $60-$70 per barrel since OPEC+ started its production increases in April. This compares to $82 per barrel at the beginning of 2025. Leon added that the oil market's futures structure for monthly also changed last week. This could indicate possible oversupply and may have influenced OPEC+ decisions. Brent's immediate price premium over six month futures The price of a litre of petrol fell to 39 cents - the lowest since May. When supply exceeds demand, premiums tend to fall. MARKET SHARE The group claims that its market strategy is driven not by oil price targets, but fundamental factors of supply and demand. Sources familiar with OPEC+ talks say that Saudi Arabia, the leader of OPEC+, is de facto prioritising regaining share on rival producers. The OPEC+ group's planned production increases from April to November total more than 2.7 millions barrels of oil per day or 2.5% global demand. However, the group has not been able to reach them in full. Data and analysts have shown that OPEC+ is on track to reach about 75% of its goal, as the majority of producers are already at capacity. The extra supply has been absorbed by China's stockpiling and the summer fuel demand. Many analysts believe that the market will face a surplus in the coming months as the summer driving period and the autumn harvest of the northern hemisphere ends, and as supply from OPEC+ and non-OPEC producers such as the United States and Brazil increases. Paris-based International Energy Agency forecasts a surplus of twice that amount in 2026 - 3.3 millions bpd. Calculations show that OPEC's most recent forecasts indicate a 700 000 bpd shortfall for 2026 if it maintains its output at the same level as August. Since August, OPEC's output quotas have already been raised by 821,000 bpd. JP Morgan reported that the global oil and liquids inventories - including crude oil stored on water - have increased every week during September. 123 million additional barrels were added in this month. China accounted for over a third of global liquid inventory growth in the first nine-month period. JP Morgan stated that the increase in Middle Eastern crude exports and Russian crude imports in September will contribute to the surplus. Kpler reported that oil exports from Russia and Saudi Arabia, Iraq, the UAE, Kuwait, Oman, and Oman increased by 1.3m bpd compared to August. Analysts polled said that it is difficult to predict future disruptions in Russian exports because of sanctions, Ukrainian attacks and China stockpiling. These factors could lead to a tightening of supply and a rise in demand.
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Caribbean Island residents ask the court to order Dutch State to take climate action
Residents from the Dutch Caribbean told a court Tuesday that the climate change has made the island of Bonaire unbearably dry and hot. They asked the judges to order Dutch state to reduce greenhouse gases faster. Onnie Emerenciana (a farmer in his sixties) told the court the heat was bad for the elderly, the droughts were bad for the crops, and rising sea level could wipe out the historically important slave huts that once dotted the beaches of the island. Emerenciana, a district court judge in The Hague, said: "We are suffering under the effects" of greenhouse gas emission to which we barely contributed. Bonaire, in the southern Caribbean, is an ex-Dutch colony that became a Dutch special municipality in 2010. Around 20,000 of its residents are Dutch. Eight plaintiffs in this case are demanding that the Netherlands reduce its greenhouse gas emissions to zero, 10 years earlier than its current plans. They also claim the Dutch government is not doing enough to protect the island from rising sea levels. The case only has eight plaintiffs, as it is expensive and time-consuming to travel to the Netherlands to hear the case. However, any decision will be applicable to the entire island. Greenpeace, an environmentalist group, has backed the case by stating that parts of Bonaire are likely to be permanently submerged in 2050. Michael Bacon, a plaintiffs' attorney, said that the problem was that "the state doesn't do what it says and keeps stalling climat policies", even though it is predicted it won't meet its goals. Later on Tuesday, lawyers for the Dutch government will speak. They have submitted written arguments in which they insist that judges can't set government policy. The Dutch have said that the problem of greenhouse gas emissions is a global one and the Dutch contribution to it is only a small fraction. (Reporting by Stephanie van den Berg; Editing by Alison Williams)
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Draft shows that EU will push for climate-focused development banks despite US opposition
A draft EU document revealed that the European Union would increase its support for reforming international development banks in order to combat climate change. This stance puts Brussels at odds against the U.S. before World Bank and IMF meeting this month. The International Monetary Fund (IMF) and World Bank Group prepare for their annual meeting in Washington, against the backdrop of Trump's climate change scepticism and aid cuts. In April, U.S. Treasury Sec. Scott Bessent stated that the institutions need to refocus their efforts on their core mandates. They were spending too much time and money on topics such as climate change. The draft conclusions of a meeting of EU Finance Ministers, held on Friday, revealed that the EU would reiterate its support for the work of development banks to combat climate change, and will push for reforms in order to unlock more funding. The draft stated that the EU "calls upon all shareholders to support necessary strengthening of MDBs (multilateral Development Banks) in order to deliver at scale, and to align themselves with the Paris Agreement goals for accelerating global climate action." The United States has the largest shareholding in both the World Bank and IMF. EU members, including Germany and France, have smaller voting rights in the institutions. The EU document could change before it is adopted by ministers. It stated that the bloc supported reforms for de-risking projects, offering local currency financing, and making credit risk data more visible, in order to unlock greater private investment. The report said that multilateral development bank should stop financing fossil fuels and "report comprehensively on their efforts and progress". In the past few years, World Bank and MDBs began reform processes that could lead them to increase funding or accept more climate-related risks. Barbados and other countries vulnerable to extreme weather have been leading the call for reforms in order to tackle developing nation's challenges such as high debt levels, slow growth, and climate change. The World Bank's annual meeting is scheduled for 13-18 October. Despite the fact that the United States under Trump has withdrawn from the global effort to combat climate change, campaigners have called on the World Bank not to abandon this path. The European Investment Bank has made climate change a priority. It aims to double its investment in climate change adaptation to 30 billion euro by 2030. (Reporting and editing by Peter Graff, Simon Jessop)
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Indonesia reduces the validity of mining quotas by one year
Indonesia announced on Tuesday that it has shortened the validity period of the mining production quotas from three years to one year as of October 3. The government is seeking to control output levels in order to support prices for commodities such as coal and nickel. Mining Minister Bahlil lahadalia had announced the move in July. The ministry stated that quotas issued in 2026 and 2027 will still be valid, but miners must reapply to receive quotas. It added that RKAB proposals - documents used by companies to request the amount of gold they can mine in a given period - should be submitted every year between October 1st and November 15th. The coal miners association APBI expressed its hope that the short time remaining for RKAB approval and submission for 2026 will not affect miners operations. Gita Mahyarani, executive director of APBI, said: "This is closely linked to the certainty in business sustainability from investment to contract fulfilment." According to the new rules miners must also provide proof of their ability to pay for the rehabilitating the land after mining. State media Antara reported that the ministry suspended 190 mining licenses last month after companies failed their obligations to repair mine-damaged land and comply with production quotas. (Reporting and editing by John Mair, Edwina Gibbs and Bernadette Cristina Munthe)
Stocks and bonds gain some poise as 'political sound' dampens the underlying optimism
The global stock and bond markets gained some stability Tuesday as the political turmoil in France, Japan, and the U.S. reverberated through the market. However, this did not overshadow investor optimism about a possible boost due to lower U.S. rates.
The euro dropped for a second consecutive day in Europe. Stocks also fell, but volatility was contained as investors awaited the developments in France. There, the shocking resignation of Sebastien lecornu, France's Prime Minister, on Monday plunged the second-largest economy in Europe deeper into crisis.
The U.S.
Government shutdown
The impasse continued, but there was little sign that it would be broken.
In Japan, investors bought up a lot of shares in a sale.
government debt
In a gesture of easing nerves after
Sanae Takaichi was elected as the leader of the ruling coalition. She is a supporter of low interest rates and large spending. This led to a drop in the value of domestic bonds and currency, and sent stocks to new highs.
STOCKS NEAR REPORT HIGHS
The world stock market is still hovering near records, boosted by the optimism that the U.S. Federal Reserve will cut rates and by the euphoria over AI following the multi-billion dollar AI deal.
chip-supply
Deal between AMD and OpenAI
Chris Scicluna, economist at Daiwa Capital, said: "The Fed rate cut narrative will likely continue throughout the rest of this year and next year."
He added that "coupled with the AI story, and the boost in demand that will be associated with it... this should sustain the demand for risk assets." "You may have political noise interrupting it, but at this time, it is not a show-stopper."
The dollar gained 0.3% versus a basket currency, led by gains against the euro and yen. Both currencies struggled to two-month lows, on the weaker side 150 per dollar. This prompted a warning
Finance Minister
Katsunobu Kato on excess volatility
The yen is likely to continue under pressure for a while. "The political shift under Sanae Takaichi reinforced expectations that fiscal stimuli will take priority over monetary tightening. This reduces the odds of an imminent BOJ rate increase," said Tareck Horchani, Maybank Securities' head of prime brokerage.
"Fiscal growth financed by increased bond issuance also steepens the yield curve, and weighs further on the sentiment towards the currency."
The STOXX 600 fell by 0.2% on the European market. It had reached record highs the previous week. Paris' CAC-40 fell 0.3% after its biggest one-day drop since late August.
Lecornu has been given the chance by President Emmanuel Macron to have last-ditch discussions with various parties to find a solution to the crisis on Tuesday.
The yield on French bonds increased by 2.4 basis points, to 3.59%. This is the same as Monday's peak. Meanwhile, the euro was under pressure and fell 0.3% to $1.168.
The World Bank's China Growth Forecast for 2025
The U.S. Stock Futures fell just 0.1%, suggesting a lower opening for the benchmark indices that hit record highs on Monday.
World Bank
The company also raised its estimates for the growth of China in 2025, as well as those of other parts of the world, but warned that momentum would slow down next year.
Brent crude futures rose 0.17% on Tuesday to $65.58 per barrel. Gold reached a new record high of $3977.19 per ounce. Bitcoin hovered below the $126,223 mark.
(source: Reuters)