Latest News
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LME Updates Trading Rules Ahead of Platform Launch on March 24
The London Metal Exchange announced changes to its electronic trading policy ahead of its launch of "LMEselect V10," the new trading platform. This is scheduled to take place on March 24, 2019. On its website, the LME, which is owned by Hong Kong Exchanges and Clearing Ltd., stated that the new platform was designed to improve its electronic markets and better meet the evolving needs of the physical metals and financial trade communities. Updates detailed in a LME notice published on Monday aim to improve clarity and reflect new functionality in the trading platform. The LMEselect V10 certification for trading algorithms is required by the exchange. This includes members who use them to develop in-house strategies or for clients. The LME said that it was the responsibility of those who offer Direct Electronic Access (DEA) to ensure their clients adhere to the regulatory framework, and complete the certification procedure. LME stated that the updated policies will take effect on "the Go Live date", while DEA certification and algorithm requirements are in place immediately. Reporting by Sherin Varghese, Bengaluru. Editing by Barbara Lewis.
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Alabama Power will build a 150-MW battery storage system at the former site of a power plant
Utility Southern Co’s Alabama unit announced on Monday that it would develop a utility-scale, battery energy storage system of 150 megawatts (MW) at the former site of its coal-fired plant in Walker County. CONTEXT The new Gorgas Battery Facility is designed to house lithium-ion phosphate battery packs with a 2-hour lifespan. Construction should begin in this year, and be finished by 2027. Alabama Power said that the seven-acre facility would be designed as an independent system, which will be connected to and charged directly from electric grid. Why it's important BESSs have become increasingly important as companies and countries move to cleaner energy in order to combat climate changes. The systems are able to store excess energy from renewable sources. This can be very useful when there is a high demand for energy or if power production is low. Batteries can be used to integrate clean energy sources into a company's mix of power generation. They are a complementary technology that complements variable and weather-dependent renewable resources such as solar. KEY QUOTE Batteries can be charged when energy prices are low and discharged when energy rates are high, which helps to keep costs low. "They can supply energy quickly to our system in response to changing circumstances," said Brandon Dillard. Senior vice president of Alabama Power’s generating fleet. (Reporting and editing by Tasim Zaid in Bengaluru, with Pooja Mnon from Bengaluru)
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Vanguard resumes its stewardship meeting after reviewing SEC guidance
Vanguard, the top mutual fund company in the world, has resumed its stewardship meeting with portfolio companies following a review of new guidelines from securities regulators. A document obtained by shows on Monday confirms this. Vanguard has followed a similar move by BlackRock, which was made last month. Both companies paused their meetings to take stock of the materials published by the U.S. Securities and Exchange Commission, which could require fund firms to disclose more information when they press portfolio companies on certain environmental and social issues. The document summarizes the message Vanguard representatives share with portfolio companies to emphasize the passive design. The document states that in light of the SEC's new guidance, it is important to "clarify our communications with portfolio companies to make sure that they understand that we only invest and engage to meet investment objectives." The document says that Vanguard will, among other things, make proactive statements about the fund's passivity at the beginning of each meeting. It states that "Vanguard’s Investment Stewardship Team will continue to engage companies with a single focus on safeguarding, and promoting, long-term returns in the companies where our funds invest." Vanguard's spokesperson declined to provide any further details on the materials.
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Trump will decide US tariffs on Mexico and Canada by Tuesday deadline
His Commerce Secretary said that President Donald Trump would decide on Monday which tariff levels he would impose on Canada and Mexico on early Tuesday morning, amid last-minute talks over border security and efforts aimed at preventing the inflow of opioids such as fentanyl. Trump has promised to impose tariffs of 25% on all imports coming from Canada and Mexico. The Canadian energy sector will be subjected to 10%. CEOs and economists claim that the tariffs, which cover more than $900 Billion in annual imports to the United States from Canada and Mexico, would be a major setback for the North American economy. Tariffs will be in effect on Tuesday at 12:01 am EST (0501 GMT). Howard Lutnick, Commerce Secretary on Sunday, indicated that Trump might not impose all of the tariffs. He said that the president will determine the exact level and that tariffs are a "fluid" situation. Lutnick, a CNN reporter, said that Trump and his advisors will be discussing the progress Canada and Mexico have made in closing their border to illegal immigration on Monday. He said that both Mexico and Canada had done an excellent job at the border, but they needed to do more to stop the flow of fentanyl into the U.S. in order to reduce the number of deaths caused by the opioid drug. Lutnick stated that the president is concerned about the lives of Americans, and so the cartels must be attacked to bring down the fentanyl. It's because it's fluid. Lutnick said that the president will have to tell him, "I'm grateful for what you've done, but I don't think you've accomplished enough." Trump will also likely raise the fentanyl tariffs on Chinese imports from 10% to 20% on Tuesday, unless Beijing stops importing fentanyl into the U.S. Lutnick didn't mention any possible changes to these duties. These duties would affect $439 billion in annual imports. On Friday, senior Canadian and Mexican officials met with Trump Cabinet members to discuss efforts to secure their border. However, Trump cited the lack of progress made in reducing deaths from fentanyl-related overdoses. MEXICO'S RESPONSE PLAN Mexico has intensified its anti-drug campaign and hinted that it may take new measures against imported Chinese products after avoiding Trump's first tariff round by striking a deal at the last minute to send thousands troops to its border in the north. In a Monday press conference, President Claudia Sheinbaum said that her government was calm while it awaited Trump’s decision. However, Mexico will react if tariffs were imposed. Sheinbaum stated, "We have plans B, C and D" without providing any further details. Sheinbaum added that the coordination between the U.S. and Canada on fentanyl trade has been "very effective." The Centers for Disease Control and Prevention estimates that 72,776 Americans will die from synthetic opioids by 2023, primarily from fentanyl. NAVARRO : TRUMP UNWAVERING Peter Navarro, White House Trade Advisor, told CNBC Monday that he doesn't see Trump compromising on his tariff agenda. He did not specify the level or scope of tariffs for Canada or Mexico. He said that the impact of any tariffs on inflation would be "second order small". I don't think the president will waver, as he is determined to make America strong and prosperous with (more) factory employment and real wages rising. He has chosen this path." Trump added a new trade action on Saturday to the cascade of tariff announcements that have taken place over the last month. He opened a national-security investigation into the imports of wood and wood products, which could lead to steep tariffs. Canada, which already faces 14.5% U.S. duties on softwood lumber would be particularly hard hit. Trump had ordered the revival of an investigation on countries that levied digital services taxes. He also proposed fees up to $1.5million for every Chinese-built vessel entering a U.S. Port. This is in addition to the plans to increase "reciprocal" tariffs to match other countries' tariff rates and to offset other trade barriers. The European Union could be hit hard by this move due to the high value added tax charged by EU member countries. Desmond Lachman of the conservative American Enterprise Institute warned that Trump's "tariffs-on-steroids" agenda could keep inflation high and tip the global economic system into recession. PACKAGE ORDERS Late on Sunday, the White House issued technical orders by Trump in relation to tariffs against Mexico and Canada. The White House declared that low-value packages coming from Mexico and Canada cannot enter the U.S. under the "de minimis exemption" for shipments below $800. The order stated that the ban would take effect after the Commerce Department determined that sufficient screening measures were taken. Trump suspended the de minimis exemption for low-value Chinese package on February 4, but U.S. Customs and Border Protection Agency was forced to pause this suspension as packages were piling at U.S. Airports without a screening method. Fentanyl traffickers are using the de minimis exemption to bring fentanyl, its precursor chemicals and other drugs into the U.S. and officials claim that the packages enter the country unscreened. Reporting by David Lawder, Andrea Shalal and Susan Heavey; additional reporting from Kym Madry and Ana Isabel Martinez at Mexico City and Susan Heavey and Andrea Shalal in Washington; editing by Alistair Bell
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Eurazeo raises $300 million for the Planetary Boundaries Fund
French private equity investor Eurazeo announced that it had raised a total of 300 million euros (314.64 million dollars) for a new fund investing according to the limits of our planet. It also made its first investment into an agricultural pest control firm. Managing Partner Sophie Flak said that the money raised by the Eurazeo Planetary Boundaries Fund at its first closing, 10 months after the marketing launch of the fund, was 40% of the target of 750 millions euros. Investors from various institutions, such as insurance companies, asset management firms and family offices, made the demand. Flak explained that "our fund isn't based upon regulation or politics. It's based upon the physical world... You're seeing droughts, storms and fires." This fund is about the challenges of the physical world. The fund has an advisory panel of experts in economics and the environment who use a "buy and build" strategy to help scale-up small and medium-sized businesses. The first investment of the fund was Bioline AgroSciences. This company designs, manufactures and markets biologically-based solutions that prevent pests from destroying crops like berries, flowers, and vegetables. The fund, along with family-owned impact fund Aurae will own a majority stake. This company operates six factories in the United States as well as Britain, France and Spain.
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Uganda signss first production sharing agreement to revive copper mine
Uganda signed its first mining sharing agreement (PSA), to redevelop an abandoned copper and cobalt-mine in the west of the country, near its border, with Democratic Republic of Congo. Government geologists estimate that the Kilembe Mine, located at the foothills the ice-capped Rwenzori Mountains, contains about 4,000,000 metric tons ore containing 1.98% cobalt and 0.17% copper, both of which will be needed to transition from fossil fuels. Energy and Mineral Development minister Ruth Nankabirwa said that under the PSA, Ugandan companies Sarrai Group Limited and Nile Fibreboard Limited would jointly develop the mine. She didn't say how much she would invest. Nile Fibreboards, a subsidiary of the agro manufacturing conglomerate, is one division of Sarrai Group. Nile Fibreboard is based in Kampala, the capital of Uganda. It also sells wood products. However, it wasn't immediately clear whether either company had any mining experience. Nankabirwa wrote in the post: "This morning we marked an important milestone in Uganda's mining sector by signing Uganda's first ever Mineral Production Sharing Agreement to redevelop Kilembe Mines." She said that more than a dozen companies had expressed an interest. From this group, the two winners were selected. This flagship project will produce cobalt and copper cathodes, which are critical for the transition towards clean energy technologies and to drive Uganda's Industrialisation. The mine started producing copper cathode in 1956. It peaked in the early 70s at 18,000 tonnes per year. Falconbridge, a Canadian company, halted its activities in the late 1990s due to political instability and low copper prices. According to the Ministry of Energy, this mine consists of a greenfield exploration zone, a brownfield mine for copper, a processing facility, and tailings rich in cobalt. No contact information was listed on the site, so it was impossible to reach Sarrai immediately. Nile Fibreboard did not respond to questions sent via email. Reporting by Elias Biryabarema, Editing by Hereward Holland and Barbara Lewis
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Grossi, IAEA's Grossi, defends sending staff to Zaporizhzhia nuclear plant through Russia
Rafael Grossi, the U.N. chief nuclear watchdog, defended his decision on Monday to send staff across Russian territory in order to relieve their colleagues at the Russian-occupied Zaporizhzhia Nuclear Power Plant in Ukraine as an "extraordinary" exception. Since September 2022 - roughly six months after Russia's full-scale invasion in Ukraine - the International Atomic Energy Agency has had a small presence there. Since then, the IAEA has replaced or rotated its staff 26 times. Ukraine's Energy Minister sent Grossi a note saying that the latest rotation which, for the first time, passed through Russian territory was "in violation" of Ukraine's sovereignty, the Ukrainian energy ministry announced on Monday. German Galushchenko, the Energy Minister of Ukraine, said that Russia deliberately prevented rotations. The latest one occurred without Ukraine's consent. The Ukrainian Foreign Ministry also expressed its disapproval of the rotation over the weekend. The IAEA and Ukraine both consider that the plant is Ukrainian. Grossi said at a press conference that the only reason for the move was to ensure the safety of the workers. The team that replaced itself over the weekend was there since December 10, which is a much longer period than normal. A drone destroyed the rear of an IAEA vehicle during a December rotation. However, no one was injured. Grossi called the attack unacceptable without naming those responsible. Both Russia and Ukraine accuse each other of drone attacks at Zaporizhzhia and other military activities. Grossi added that he informed Ukrainian officials, including President Volodymyr Zelenskiy. "I don't think it is a good idea to read more into this, because I am responsible for my staff's security. That is the only reason we have made this extraordinary exception to rotate in this manner." (Reporting and editing by Aidan Lewis; Francois Murphy)
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US construction spending declines unexpectedly in January
U.S. Construction Spending unexpectedly declined in January. This was mainly due to a decrease in multi-family housing construction. Census Bureau of the Commerce Department reported on Monday that construction expenditures dropped by 0.2%, after a 0.5% rise in December. The economists surveyed by expected that construction spending would remain unchanged. Construction spending in January increased by 3.3% year-over-year. Spending on private construction projects fell by 0.2%. Residential construction investment fell by 0.4% but new single-family project expenditures rose by 0.6%. The high mortgage rates are still a problem. This situation could worsen if additional duties were imposed on imports such as appliances and lumber. A surplus of unsold homes is on the market due to weak demand. The President Donald Trump ordered a new investigation into trade that could add more tariffs to imported lumber. This would be in addition to the existing duties on Canadian softwood timber and 25% tariffs due on Tuesday on all Canadian and Mexican products. In January, spending on multi-family housing units fell by 0.7%. The spending on home improvements continued to increase. In January, the investment in non-residential private structures such as offices and factories remained unchanged. The spending on public construction projects increased by 0.1%. State and local spending fell by 0.1% while federal government expenditures grew by 3.2%. Reporting by Lucia Mutikani; Editing and proofreading by Andrea Ricci
A minimum of 22 reported dead as storm John dissipates over Mexico
Homeowners in southwestern Mexico on Saturday left from homes flooded by the remnants of Typhoon John that ravaged the Pacific shoreline for a week, bringing lethal floods and landslides that left 22 people reported dead.
In Guerrero, the worst-hit state and among Mexico's. poorest, 18 people were eliminated, according to local media, numerous. due to mudslides that squashed homes. To the south, regional media. reported three deaths in Oaxaca, and a young kid died in a river. to the north in Michoacan state.
John rapidly enhanced into a major typhoon on Monday. before tearing into Guerrero. It dissipated then reformed. offshore and for the remainder of the week skimmed the shoreline. north, bringing downpour and floods.
John began dissipating on Friday and is no longer thought about. an active storm.
Guerrero state governor Evelyn Salgado shared images on X of. emergency situation responders in the significant resort city of Acapulco. carrying out rescue operations by boat, jetski and helicopter,. and citizens wading through roadways flooded approximately waist-high.
Salgado said access to the airport had actually been restored on. Saturday early morning.
Citizens with kids who evacuated from flooded. communities on dinghies and surf boards asked authorities for. assistance as the city, still recovering from a disastrous 2023. storm, faced a second disaster in less than a year.
Last October, Typhoon Otis struck Acapulco as a Category 5. storm that quickly heightened off the coast, leaving over 50. individuals dead and billions of dollars in damages. However John's. rainfall nearly tripled the rain generated from Otis.
A lot of water has come down, resident Jazmin Barrera informed. UnoTV. We have not seen the sun since Monday. I think this time. around has actually been more devastating.
Heavy rains and thunderstorms are anticipated across. Guerrero and parts of Oaxaca later on Saturday, but authorities. in Acapulco said the floodwaters were starting to fall back.
Shelters and kitchen areas have been established and food supplies. are being dispersed, President Andres Manuel Lopez Obrador. said on X. Luckily, the water is now declining and aid to. the victims will continue.
Meteorologists state warmer ocean temperature levels are giving more. fuel to hurricanes, allowing them to end up being more powerful much faster and. leaving coastal communities less time to brace for their blow.
(source: Reuters)