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Climate advisers warn that Britain must prepare urgently for higher temperatures
Climate advisers warned that Britain is not prepared for the extreme weather conditions already taking place. This year, Britain experienced the warmest summer in recorded history, which affected health, agriculture, and infrastructure. Droughts were declared in many regions. Climate Change Committee responded to an environmental minister's request for advice by writing to the government: "It is evident that we are not yet prepared for the weather and climate changes that we live with today. Let alone those expected in the coming decades." The CCC identified six key areas for action: public health and food security, resilience of infrastructure, protection of cities from extreme weather disruptions, maintenance of public service and climate-resilient growth. The majority of governments committed to the 2015 Paris Agreement that they would try to limit the global average temperature increase to 1.5 degrees Celsius over pre-industrial levels. Scientists have been shocked by the rapidity of change. According to data from U.N., and EU science agencies, global temperatures are already 1.3-1.4°C above pre-industrial levels. Julia King, Chair of the CCC Adaptation Committee, said at a CCC press conference: "We still believe (limiting the increase to) 1.5 degrees as a long term goal is achievable, but the risk that this will not be accomplished is increasing." The group warned that a global warming of four degrees Celsius by the end of this century cannot be ruled-out and suggested that it should be taken into account when planning homes and infrastructure to ensure they can withstand 75 to 100 more years. (Reporting and Editing by Ros Russel)
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Blackouts caused by network overload in Kyiv and other Ukrainian regions
Officials said that a network overload and residual effects from previous Russian attacks caused blackouts to occur in Kyiv, and other Ukrainian regions, late Tuesday. In some parts of the capital, water pressure is also low. In a Telegram message, the Kyiv City State Administration said that the overload caused a problem at one of the energy sites in the capital. Three central Kyiv districts were without power on the west side of the Dnipro River that runs through the city. Kyiv Metro was temporarily forced into relying on reserve power in order to continue operating. Later, the administration said that emergency crews restored power in affected areas. However, outages continued to be reported. The administration said that water pressure levels would return to normal within two to three hour. Ukrenergo operates Ukraine's high voltage lines. The company said that lingering problems caused by Russian attacks on Ukraine's energy system have led to outages across the country, including in northern, central, and southeastern Ukraine. Ukrenergo announced on Telegram that "the aftermath of Russian attacks against energy facilities continue to be addressed" in all the regions affected by shelling. In recent weeks, Russian attacks have focused on energy targets. Last week, a wave of strikes in Kyiv and surrounding areas left over a million homes and businesses without electricity. (Reporting and editing by Richard Chang; Ron Popeski)
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Ukrainian PM talks about attacks on energy during US talks
In Washington, Ukraine's Prime Minister said that she would focus on Russian attacks against her country's power grid during talks with President Volodymyr Zelenskiy later this week. "At each meeting in Washington, we raise the subject of defending Ukrainian Energy and supporting our resilience during the winter as well as ways to defend this," Prime Minister Yulia svyrydenko posted on Telegram. She said that the priority of her visit was "energy, sanctions, and new ways of cooperating with the USA to strengthen both of our countries". Zelenskiy met with Donald Trump, the U.S. president on Friday, to discuss Ukraine’s air defence capabilities and long-range strikes. Both leaders met twice over the weekend to intensify discussions regarding the possible provision of long-range Tomahawks missiles to Kyiv. Treasury Secretary Scott Bessent, during his talks with Svyrydenko "reaffirmed United States unwavering support of Ukrainian sovereignty" and stressed the United States commitment to securing an lasting, durable peace, according to U.S. Treasury. Svyrydenko was also thanked for his support of the U.S. Ukraine Reconstruction Investment Fund that the Ukrainian Prime Minister helped to establish earlier this year. In September, Ukraine and the U.S. held their first joint board meeting. The fund was created as part of an agreement to grant Washington access to Ukrainian mineral deposits in exchange for investments. Svyrydenko was accompanied by Rustem Umerov, Secretary of Ukraine’s National Security and Defence Council and a group of officials from government, central banks and other institutions. (Reporting and editing by Stephen Coates, Jasper Ward and Ron Popeski)
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Glass Lewis, proxy advisor, ends benchmark recommendations under pressure
Glass Lewis, a major proxy adviser, will stop offering its "benchmark voting" recommendations in 2027. Instead they will provide a new set of options to clients. Glass Lewis sent a paper stating that there is a growing divide between the U.S. investors and Europeans in regards to issues such as fiduciary duties and sustainability. A spokesperson for the company said that the change in policy was also indirectly the result of criticisms the firm received from Republican politicians in the United States. The spokesperson stated that "the whole geopolitical climate is connected to this." Glass Lewis, and its rival Institutional Shareholder Services (ISS), have come under pressure by politicians who are aligned with corporate management, as topics such as executive pay and climate politics have gained more attention at annual corporate meetings. In Texas, for example, two firms are under investigation by the Republican Attorney General of the state over whether or not they have violated consumer protection laws, including rules about disclosing important facts. The two companies deny any wrongdoing and have won separate preliminary injunctions that block a new state statute that would have forced them to inform clients of their advice regarding environmental, social, and governance issues, which does not only serve the financial interests of shareholders. Glass Lewis announced in its paper published on Tuesday that it will use AI to "move away from a one size fits all approach to a highly customizable, client-centric Framework." Glass Lewis will allow clients to create their own voting frameworks and will provide research that supports various voting perspectives, including those focused management views, governance, or sustainability priorities. A spokesperson for ISS said that it will continue to adhere to its benchmark policy, but also noted that it has introduced new products and services for investors. These include research which does not contain voting recommendations. Aaron Bertinetti is the CEO of Investor Engagement in North America at Computershare. This business includes shareholder outreach as well as investor relations. He expects that both functions will be more important, especially when proxy advisor recommendations are smaller. In the past, companies were able to easily identify investors that they should be trying to influence. Bertinetti stated that "now the influence has become dispersed, and is much more difficult to track."
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Doctors without Borders closes Haiti's emergency clinic as a 'last-resort'
Doctors without Borders announced on Tuesday that it will close an emergency clinic located in Port-au-Prince, Haiti's capital city. The closure is due to the violent clashes which have been ongoing in the area and are a threat to the safety of both staff and patients. MSF has been suspending operations at the Turgeau health clinic, which is located near an high school and several government ministries, ever since March. MSF reported that its vehicles, which were clearly marked, were targeted by gunfire 15 times during the evacuation. Why it's important Haiti has been in a conflict for years with armed groups that have taken control of much of its capital. This has limited the supply of goods, services, and the safe movement of three million residents of the metropolitan area. Many aid groups have left or suspended operations in Haiti due to the violence, limiting their options at a time when the healthcare system is on the verge of collapse. KEY QUOTE MSF's Chief of Mission in Haiti Jean-Marc Biquet stated in a press release that the area around the Port-au-Prince center has been a scene of regular violence for several weeks. The clinic's building was also hit by bullets several times. "MSF regrets the difficult decision that was made as a final resort. The closure will have a major impact on the access to healthcare of a population that is already suffering from violence, insecurity and precarious living situations. CONTEXT MSF stated that it was waiting for the signing of the memorandum-of-understanding which would establish a humanitarian corridor between Carrefour and the capital before it resumed medical activities between Port-au-Prince's suburb and the downtown. The Turgeau clinic's staff has reported several attacks. One incident occurred in November last year when an ambulance stopped and its staff was threatened. Patients were also killed. Another involved a patient being forcibly taken out of an ambulance, then shot, just a few feet away from the Turgeau Clinic. By the Numbers According to the World Health Organization and the United Nations, only 13% of 254 Haitian hospitals assessed in June were fully operational. Just 5% of 93 systems assessed in the Port-au-Prince metropolis were fully functional.
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US stocks finish mixed; gold surges amid positive IMF forecast and trade tensions
Wall Street ended Tuesday with mixed results and gold reached a new record high, as investors took into account the positive economic outlook from the International Monetary Fund Jerome Powell, Federal Reserve Chair, against a resurgence of U.S.-China Trade Tensions The stock market lost momentum in the late session following U.S. president Donald Trump He posted on social media about his decision. Trade ties can be cut off The Dow recovered from an early sell-off and managed to make modest gains. Crude prices dropped, and the benchmark U.S. Treasury Yields eased. The S&P and Nasdaq ended the session in the negative. Powell stated in a Tuesday speech that the U.S. overall economy "may have a firmer trajectory than anticipated." He also warned that there is no "risk-free policy path as we navigate between the tensions between our employment goals and inflation targets." This echoes an IMF report that raised its global outlook for growth as the shocks from tariffs and financial conditions were less severe than expected. The IMF, however, warned that a trade war between two of the largest economies in the world could have a significant impact on output. Peter Cardillo is the chief market economist of Spartan Capital Securities, based in New York. Tuesday, the U.S. began charging China tit-fortat port charges. The bilateral trade tensions that have roiled the world markets in this year erupted late last week when China tightened its controls on rare earth exports. Trump responded by threatening to raise tariffs on Chinese imports up to triple digits. Bank Earnings Kick Off Earnings Season Upbeat quarterly results by high-profile financial companies including JPMorgan Chase and Goldman Sachs as well as Citigroup, Wells Fargo, and Citigroup kicked off the third-quarter earning season. Cardillo said that if the banks are any guide, this will likely be a good earning season. Cardillo added, "That is another factor that supports the recent highs in the market." The Dow Jones Industrial Average rose 202.88, or 0.44% to 46,270.46. Meanwhile, the S&P 500 dropped 10.41, or 0.16% to 6,644.31, and the Nasdaq Composite declined 172.91, or 0.76% to 22,521.70. Investors watched developments in France where the Prime Minister appeared to be holding off on a major pension overhaul. MSCI's global stock index fell by 2.45 points or 0.25 percent to 978.64. The pan-European STOXX 600 fell 0.37% while Europe's broad FTSEurofirst 300 fell 7.41 points or 0.33%. Treasury yields fell but were still off their lows after Powell's remarks and the IMF revised its growth outlook. The yield of the benchmark 10-year U.S. notes dropped 2.3 basis points from Friday's 4.051% to 4.028%. The yield on 30-year bonds fell 1.1 basis point to 4.6234%, from 4.634% at the end of Friday. The oil prices dropped on the back of trade war fears and a report by the International Energy Agency that raised the prospect for increased supplies while dampening the demand. U.S. crude oil fell 1.33% on the day to settle at 58.70 dollars per barrel. Brent settled at $62.39 dollars per barrel. Due to increased trade-driven risks, the dollar declined while the Swiss Franc and Japanese yen strengthened. The dollar index (which measures the greenback versus a basket including the yen, euro and Swiss franc) fell by 0.26% at 99.04 while the euro rose by 0.31% to $1.1604. The dollar fell 0.37% against the Japanese yen to 151.71. The latest salvo of the Washington-Beijing Trade Spat boosted demand for gold to surpass $4,100. Spot gold increased by 0.75%, to $4140.97 per ounce. U.S. Gold Futures increased 0.77% to $4140.20 per ounce.
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A trade group wants to prohibit the export of scrap aluminium cans to China
A trade group representing aluminum industry demanded on Tuesday a ban on U.S. imports of used beverage containers to China in order to support American productions of cars, fighter planes, tanks, and satellites. The Aluminum Association stated that the United States exports more than 2,000,000 tons of aluminum scrap each year while consuming between 5 and 6 million tons. The group demanded an immediate ban on the export of used beverage containers outside North America for national security reasons, stating that much of U.S. waste flows to China, where it is processed before being shipped back to North America as finished products. The group stated that the U.S. Aluminum industry faces an annual supply gap of approximately 4 million metric tonnes of raw aluminum. They also said it would take many years to become self-sufficient, as well as billions of dollars in addition to accessing a large amount of affordable energy. Nearly half of the scrap aluminum exported by the United States is recycled. The association stated that this is especially concerning because the demand for aluminum in important areas such as cars, planes, and packaging has been growing. In June, President Donald Trump imposed tariffs of 50% on aluminum metal imported to the United States. Canada imports two-thirds the total amount of primary aluminum used in the United States each year. The Commerce Department announced in August that it would be increasing steel and aluminum tariffs for more than 400 products, including auto parts worth $240 billion annually. These parts include electrical steel and automotive exhaust systems needed for electric vehicles, as well as bus components. The U.S. tariffs do not only apply to steel and aluminium, but also to many 'derivatives' made from these metals. (Reporting and editing by Chris Reese, Chizu Nomiyama)
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Russian official: Work to restore connection to Zaporizhzhia Nuclear Plant begins this week
On Tuesday, a Russian official announced that the restoration of external power to Zaporizhzhia's nuclear power plant in Russia will begin this week. The station has been operating on diesel generators since it was shut down for three weeks. In the first few weeks of Moscow’s invasion of Ukraine in February 2022, Russian forces captured the Zaporizhzhia Plant. Both sides have accused each other of military actions that led to the collapse of the external line on July 23, 2022. Mikhail Ulyanov is Russia's permanent representative at international organizations in Vienna. He told Russian state news agency RIA that "active preparations are currently underway." We expect that the repair work will begin on both transmission lines by the end of the week. Ulyanov stated that in order to carry out the repairs, it is "essential to agree on local ceasefires in the areas where the work will be carried out". The Vienna-based U.N. Nuclear watchdog International Atomic Energy Agency has repeatedly called for both sides to refrain form actions that compromise nuclear safety. The plant is Europe's biggest with six reactors. It produces no electricity right now, but it needs to produce power in order to keep the fuel cool inside and avoid any possible meltdown. Rafael Grossi, Director General of the IAEA, said that the diesel generators provide the needed power and has worked with both sides to restore the external links. Ukraine's Foreign Minister accused Russia of intentionally severing an external power line at the station to connect it to Moscow's grid. This month, a top Russian diplomat denied that Russia has any intention to restart the plant. (Reporting and Editing by Lisa Shumaker).
US stocks are mixed and gold is up as economic forecasts outweigh trade tensions
Wall Street stocks were mixed Tuesday, and Treasury yields fell as investors weighed the upbeat economic outlook from the International Monetary Fund (IMF) and Federal Reserve Chairman Jerome Powell with renewed U.S. China trade tensions. S&P 500, Dow and crude prices all fell sharply after the opening of the three major U.S. indexes. Gold prices, a safe haven, also jumped above $4,100 for the first time.
The Nasdaq, which is dominated by tech stocks, remained modestly lower. Powell warned that the U.S. overall economy may be "on a slightly firmer trajectory than anticipated" in a speech he gave on Tuesday. He also said there was no "risk-free policy path as we navigate between our employment goals and inflation targets." This was in line with an IMF report that raised its outlook for global growth as the impact of tariffs and financial conditions has been less than expected. The IMF, however, warned that a trade war between two of the largest economies in the world could have a significant impact on output.
Peter Cardillo is the chief market economist of Spartan Capital Securities, a New York-based brokerage.
On Tuesday, the United States and China started charging port fees tit for tat.
Late last week, bilateral trade tensions that have roiled world markets in recent years erupted after China tightened its controls on rare earth exports. U.S. president Donald Trump responded by threatening to raise tariffs on Chinese products into triple digits. The third quarter earnings season kicked off with positive quarterly results from high profile financial firms such as JPMorgan Chase and Goldman Sachs. Citigroup, Wells Fargo, and Citigroup also reported good results.
Cardillo said that if the banks are any guide, this will likely be a good earning season. This is another factor that supports the recent highs in the market. LSEG data show that analysts estimate an aggregate growth rate of 9.2% year-on-year for the S&P500 in the third quarter, up from the 8.8% reported at the start of the month. Official economic data are unavailable as the U.S. shutdown continues due to a partisan impasse in Congress. A National Association of Independent Business survey showed that small business sentiment was deteriorating, as inflation concerns returned to the forefront. The Dow Jones Industrial Average gained 392.34 points or 0.85% to 46,460.87. The S&P 500 rose 18.74 points or 0.28% to 6,673.46. And the Nasdaq Composite dropped 42.25 points or 0.18% to 22,652.35.
European stocks closed lower on Friday as renewed U.S. China trade tensions soured investors' sentiment. French tire maker Michelin also cut its annual forecasts, sending its share price to its lowest level in over two years. Investors watched developments in France where the prime minister seemed to be holding off on a major pension overhaul.
The MSCI index of global stocks rose by 0.51 points or 0.05% to 981.60.
The pan-European STOXX 600 fell by 0.37% while Europe's FTSEurofirst 300 fell by 7.41 points or 0.33%.
Emerging market stocks dropped 12.50 points or 0.92% to 1,340.81. MSCI's broadest Asia-Pacific share index outside Japan fell by 1.02% to 695.44. Japan's Nikkei dropped 1,241.48 or 2.58% to 46,847.34.
Treasury yields fell but were still off their lows after Powell's remarks and the revised IMF growth outlook. The benchmark 10-year U.S. note yield dropped 2.3 basis points from Friday's 4.051% to 4.028%.
The 30-year bond rate fell by 0.6 basis points, from 4.634% to 4.6282% late Friday.
The yield on the 2-year note, which is usually in line with expectations of interest rates, dropped 3.9 basis points from Friday's close to 3.483%.
The oil prices dropped on the back of trade war fears and a report by the International Energy Agency that raised the prospect for increased supplies while dampening the demand.
U.S. crude oil fell 1.33% on the day to settle at 58.70 dollars per barrel. Brent settled at $62.39 dollars per barrel.
As trade-related risks increased, the dollar dropped while the Swiss Franc and Japanese Yen strengthened.
The dollar index (which measures the greenback in relation to a basket of currencies, including the yen, the euro and others) fell by 0.27%, while the euro rose 0.32%, reaching $1.1605
The dollar fell 0.32% against the Japanese yen to 151.78.
Bitcoin fell by 2.13%, to $113.334.48. Ethereum fell 3.91% to $4.121.82.
Gold rose above $4,100 on the back of rising expectations for Fed rate cuts, and the safe-haven demand that arose from the latest salvos in the Washington-Beijing Trade Spat.
Spot gold increased by 0.88%, to $4146.12 per ounce. U.S. Gold Futures increased 0.32% to $4121.80 per ounce.
(source: Reuters)