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G20 Finance chiefs meet in South Africa under a tariff cloud
The G20 finance chiefs are meeting in South Africa this Thursday, under the shadow cast by President Donald Trump’s tariff threats. Questions will be raised about their ability to work together and tackle global challenges. Since years, the club has been hampered by disagreements among its key players, exacerbated in part by Russia's conflict in Ukraine and Western sanctions against Moscow. Under its motto of "Solidarity Equality Sustainability", the host South Africa has sought to promote an African agenda. Topics include high capital costs and funding climate change action. The G20 is a group that aims to coordinate policy, but its agreements are not binding. U.S. Treasury Sec. Scott Bessent won't attend the two-day gathering of finance ministers, central bank governors and other officials in Durban. This is his second absence at a G20 meeting in South Africa in this year. Bessent skipped the Cape Town meeting in February, when several officials from China and Japan were absent. Washington will assume the rotating G20 presidency at the end the year. Michael Kaplan, acting U.S. undersecretary of state for international affairs, is Washington's representative at the meetings. G20 delegate who requested anonymity said that Bessent's lack of presence was not ideal, but the United States were engaging in discussions about trade, global economy, and climate language. The finance ministers of India, France and Russia will also miss the Durban Meeting. Lesetja Kganyago, the governor of South Africa's Central Bank, said that it was important to represent. What matters is that there is a person with a mandate behind the flag, and is everyone represented by someone behind the banner? Kganyago said. U.S. officials are not saying much about their plans to assume the presidency in the next year. However, a source who is familiar with Washington's plans says that Washington will reduce the number non-financial groups and streamline the summit agenda. Brad Setser said that he was expecting it to be a "scaled-back G20, with less expectations of substantive results." 'TURBULENT TIMES' Trump's tariff policy has rewritten the rules of global trade. The tariffs will be implemented on August 1 with a 10% base rate on all U.S. imported goods and rates up to 50% on steel, aluminium and autos. The threat of further tariffs of 10% on BRICS countries -- eight of which are G20 members -- raised concerns about fragmentation in global forums. German sources in the German Finance Ministry said that on Tuesday, Durban would be a meeting to strengthen global relationships during "turbulent" times. Duncan Pieterse, South Africa's Treasury director general, said that the group hoped to release the first communiqué under the South African G20 Presidency by the end the meetings. The G20 last issued a communique that was agreed upon by all members in July 2024. They agreed on the necessity to resist protectionism, but did not mention Russia's invasion into Ukraine. Reporting by Olivia Kumwenda Mtambo, Kopano Goko, Colleen GOKO, Philip Blenkinsop in Durban and Andrea Shalal, Washington. Writing by Olivia Kumwenda Mtambo. Editing by Philippa FELTCHER
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Oil prices rise as economic data and demand expectations lift sentiment
Oil prices rose in early trade on Thursday, reversing the previous session's losses, buoyed by stronger-than-expected economic data from the world's top oil consumers and signs of easing trade tensions. Brent crude futures were up 27 cents or 0.39% to $68.79 per barrel at 0000 GMT. U.S. West Texas Intermediate Crude Futures rose 31 cents or 0.47% to $66.69. Both benchmarks dropped more than 0.2% the previous session. The Energy Information Administration reported that U.S. crude oil inventories dropped by 3.9 millions barrels, to 422.2 million last week. This was a greater decline than the forecast of a 552,000 barrel draw. This suggests increased refinery activity, tighter supplies, and higher demand. The favorable margins associated with the refinery sector provide "some support". John Paisie of Stratas Advisors said that product spreads are still wide across all regions. The price increases were capped by the fact that gasoline and diesel inventories rose more than expected. The latest snapshot of the U.S. economy released by the central bank on Wednesday showed that activity has picked up in recent months. The outlook, however, was "neutral or slightly pessimistic", as businesses reported higher import tariffs pushing up prices. Data from China showed that growth in the second quarter slowed, but not as much as was previously thought. This is partly due to front-loading in order to beat U.S. Tariffs. Data also revealed that China's crude oil throughput in June was up 8.5% compared to a year earlier, suggesting a stronger fuel demand. John Paisie said that "the positive news regarding some easing in trade tensions between China & the U.S., with President Trump lifting his ban on the sales of AI chips to China as well as the announcement of an Indonesian trade agreement" has also been supportive. Donald Trump, the U.S. president, expressed renewed optimism regarding the prospect of a drug-related deal with Beijing. He hinted at a very near-term trade agreement with India, and that an agreement with Europe could be possible. Tariffs on trade could dampen global economic growth and, in turn, put downward pressure on fuel prices. (Reporting by Anjana Anil in Bengaluru; Editing by Sonali Paul)
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Couche-Tard withdraws its $47 billion bid to take over Seven & i
Alimentation Couche-Tard, a Canadian retailer, announced on Wednesday that it had withdrawn its $47 billion bid to acquire Seven & i Holdings. The company cited a lack "constructive engagement" with the Japanese family who founded the Japanese firm. Couche-Tard's attempt to merge Circle K and 7-Eleven into a global convenience-store giant with 20,000 stores ended after a year-long effort. In an effort to reduce regulatory obstacles, it had also agreed on a plan to sell stores. In a letter addressed to the board of directors, Couche-Tard stated that "we have sought to have a dialogue with the Ito Family on many occasions but they are not open to any discussion." Couche-Tard increased its offer from $38.5 billion to $47 billion in October of last year. In March, it offered to raise it even further if Japan cooperated and provided more financial data. The company's efforts to cement the acquisition gained momentum after a $58 billion rival white-knight offer from Seven & i Holdings founder family failed to secure financing. The companies had signed a non-disclosure (NDA) agreement earlier this year. However, "the quantity and content of the allowed due diligence, even at two closely constrained management meetings have been negligible," Couche-Tard stated in his letter. Couche-Tard wrote in his letter: "At this time, we have no idea when we will receive further information." (Reporting and editing by Shailesh Kuber in Bengaluru, Savyata Mihra from Bengaluru)
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MP Materials launches $500 million public offer of common stocks
MP Materials announced on Wednesday that it will sell $500 million worth of its common stock. This comes a day after a U.S. rare-earths miner signed a deal to supply Apple. In extended trading, shares of MP Materials dropped 5.8%. The company's market value has risen by $9.57 billion, a 275% increase in the past year. The $500 million deal with Apple is an impressive achievement for MP, and represents a rare investment from a tech firm that wants to reduce the risks associated with its supply of rare earth magnets. Last week, the Las Vegas-based firm signed a multi-billion dollar agreement with the U.S. Department of Defense as the government sought to reduce its dependence on China. China had restricted rare earths imports in April due to President Donald Trump’s tariffs. Although the U.S.-China agreement reached in June has settled much of the dispute over rare earths, wider trade tensions continue driving demand for non Chinese supply. MP Materials was not required to sell stock to the public as part of the Pentagon deal. MP stated that it plans to use the net proceeds of its offering to fund growth and general corporate purposes. The company announced that it would give underwriters the option to buy up to 15% more of its shares within a 30 day period. Morgan Stanley and J.P. Morgan are both book-running managers for the sale of stock. (Reporting and editing by Devika Syamnath in Bengaluru. Sumit Saha is based in Bengaluru.
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Sources say that Phillips 66 Bayway refinery is partially closed after a power outage.
Three sources with knowledge of the situation said that Phillips 66 partially closed its Bayway refinery, which produces 258,500 barrels per day, in Linden, New Jersey after rainstorms caused a power failure at the plant. Phillips 66 confirmed that the power outage occurred, but declined to give further details. According to a report filed on Tuesday with the New Jersey Department of Environmental Protection, a computer that monitors the emissions from the refinery flare stack was damaged by flooding. The report stated that all other monitoring equipment was working normally. Linden Police Department, posted on Facebook, Tuesday, that there was no damage to critical infrastructure and that the refinery flares worked properly following the overnight power failure. A second report submitted to the DEP Tuesday indicated that the sewer system of the refinery leaked unknown amounts residual oil into Morses Mill Creek. Two market participants reported that Phillips 66 has been actively buying refined products on the New York Harbor Spot Market since Tuesday. (Reporting and editing by Daniel Wallis in New York, Shariq Jao and Nicole Jao)
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Reactions to the new EU budget proposal by the European Commission
Here are some reactions on the European Commission proposal of a budget for the EU for 2028-2034, which was made Wednesday. The proposed budget is 2 trillion euros ($2.31 trillion). The proposal places new emphasis on competitiveness, defence and economic development while also aiming to reform rules surrounding farm and economic subsidy. A new EU budget agreement requires the support of all 27 countries, as well as the European Parliament. The SWEDISH GOVERNMENT - A STATEMENT "We cannot accept that EU funds are given to countries who do not respect democratic values and basic democratic principles" "We will not solve the EU's issues with a larger budget and increased EU contribution, but rather by using current resources more intelligently and placing money where it's really needed." HUNGARIAN PREMIER MINISTER VIKTOR ORBAN "Brussels proposal is a pro Ukrainian budget. Its aim is obvious: to send money from the European people to Ukraine. The Brussels plan, which is not even a good basis for negotiations, should be withdrawn in favor of a new proposal, which would serve the European people and European farmers, rather than the Ukrainian President Volodymyr Zelenskiy or Ukraine. DUTCH MINISTER OF FINANCE EELCO HEENE The proposed budget is excessive. "We should not focus on the EU spending more money, but instead on how to spend existing funds better." "This will require tough decisions. The Netherlands' financial contribution to the EU has already been significant. "We want to see a better net payment position. As far as Netherlands is concerned, there are no new instruments on the table for joint debt." BENJAMIN HADAD, MINISTER OF EUROPE FOR FRANCE "I welcome the ambitious new multiannual framework that was presented by the European Commission today" "I will be in Brussels this Friday to defend my priorities: rearmament for the European continent, support of our competitiveness, our technological sovereignty, income of our farmers and creation of our own resource." ANTONIO COSTEA, PRESIDENT OF THE EUROPEAN COUNCIL "I am pleased that the European Commission has presented the proposal for the EU long-term Budget. This will enable the Council to begin working." Budget is more than just numbers. It is a decision about the future. We must approach this discussion with an open-mindedness and a spirit of collective responsibility. SIEGFRIED MURESAN, CARLA TAVARES, SANDRA GOMEZ-LOPEZ AND DANUSE NERUDOVA ARE THE LEAD MEMBERS IN EUROPEAN PARLIAMENT This draft budget leaves insufficient funds for important priorities, including competitiveness and cohesion. It also fails to provide adequate funding for agriculture, defence, climate adaption, and other investments necessary for an economy that is sustainable for everyone. The Parliament is ready to use its full powers to ensure that the long-term budget for the Union matches its ambitions and challenges. LINDA KALCHER EXECUTIVE DIRECTOR PAN-EUROPEAN THINK TANK STRATEGIC PERSPECTIVES ON CLIMATE BUDGET "The inclusion a 35% mainstreaming climate in the new Budget shows that the Commission is serious about supporting the decarbonisation efforts throughout the continent... It is crucial to achieve the 90% climate goal by 2040. "It is a waste of time to not exclude fossil fuels from the budget." FAUSTINE BAS DEFOSSEZ, POLICY DIRECTOR AT EUROPEAN ENVIRONMENTAL BUREAU "A budget for the long term based on a short-term mindset is a grave mistake. A dead planet is not conducive to competitiveness, prosperity or security. It's not just about repealing LIFE and merging it into a catch-all account - this is about dismantling Europe’s only dedicated instrument for nature and climate change." ANOUK POUYMARTIN, HEAD, POLICY, BirdLife Europe "This is a crushing blow to the European citizens. The proposed budget for the long-term EU does not offer a clear solution to our climate and nature crisis. The EU budget is losing biodiversity funding and prioritisation. NGO EUROPEAN Network on Debt and Development (EURODAD). "The restructuring budget puts at risk EU's central roles in combating poverty, responding global crises and supporting those who live in the Global South. The Commission proposes to combine existing external action tools into one called Global Europe. This increases the risk of funding being diverted for short-term gains in politics, instead of used to combat poverty and inequality." COPA-COGECA ORGANISATIONS, REPRESENTING THE NATIONAL COOPERATIVES AND FARMERS ASSOCIATIONS Can the Commission's unprecedented budget cuts, the dissolution and loss of community, as well as its disengagement from the historic agricultural policy be seen in any other way than a signal of abandonment and indifference to agriculture and rural communities, or a lack of strategic priority? How can the Mercosur agreement affect the "Does the European Commission still expect to be heard by the agricultural sector and have their trust in years to come?" ARNAUD ROUSSEAU HEADS FRANCE'S LARGEST FARMING UNION, FNSEA "Madame president, your budget proposal and CAP are nothing but a provocation to the agricultural community. Rethink your approach. "There will be no rise of Europe's power if food rearmament is not undertaken." Reporting by Charlotte Van Campenhout and Kate Abnett. Editing by Frances Kerry and Aidan Lewis.
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Reactions to the new EU budget proposal by the European Commission
Here are some reactions on the European Commission proposal of a budget for 2028-2034 for 2 trillion euros ($2.31 trillion). The proposal places new emphasis on competitiveness, defence and economic development while also aiming to reform rules surrounding farm and economic subsidy. A new EU budget agreement requires the support of all 27 countries, as well as the European Parliament. The SWEDISH GOVERNMENT - A STATEMENT "We cannot accept that EU funds are given to countries who do not respect democratic values and basic democratic principles" "We will not solve the EU problems by increasing EU contributions and budgets, but rather using existing resources more intelligently and placing money where it's really needed." DUTCH MINISTER OF FINANCE EELCO HEENE The proposed budget is excessive. "We should not focus on the EU spending more money, but instead on how to spend existing funds better." "This is a time for tough decisions." The Netherlands' financial contribution to the EU has already been significant. "We want to see a better net payment position. As far as Netherlands is concerned, there are no new instruments on the table for joint debt." BENJAMIN HAADAD, MINISTER OF EUROPE FOR FRANCE "I welcome the ambitious new multi-annual financial framework that was presented by the European Commission today" "I will be in Brussels this Friday to defend my priorities: rearmament for the European continent, support of our competitiveness, our technological sovereignty, income of our farmers and creation of our own resource." ANTONIO COSTEA, PRESIDENT OF THE EUROPEAN COUNCIL "I am pleased that the European Commission has presented its proposal for the EU's long-term budget. This will enable the Council to begin working." Budget is more than just numbers. It is a decision about the future. We must approach this discussion with an open-mindedness and spirit of responsibility. SIEGFRIED MURESAN, CARLA TAVARES, SANDRA GOMEZ-LOPEZ AND DANUSE NERUDOVA ARE THE LEAD MEMBERS IN EUROPEAN PARLIAMENT This draft budget leaves insufficient funds for important priorities, including competitiveness and cohesion. It also fails to provide adequate funding for agriculture, defence, climate change adaptation, and other investments necessary for an economy that is sustainable for everyone. The Parliament is ready to use its full powers to ensure that the long-term budget for the Union matches its ambitions and challenges. LINDA KALCHER - EXECUTIVE DIRECTOR, PAN EUROPEAN THINK TANK STRATEGIC PERSPECTIVES FOR CLIMATE BUDGET: "The inclusion in the budget of a climate mainstreaming of 35% shows that the Commission remains serious about its support for decarbonisation efforts on the continent... It is crucial to achieve the 90% climate goal by 2040. "It is a waste of time to not exclude fossil fuels from the budget." NGO EUROPEAN Network on Debt and Development (EURODAD). "The restructuring budget puts at risk EU's central roles in combating poverty, responding global crises and supporting those who live in the Global South. The Commission proposes to combine existing external action tools into a single Global Europe. This increases the risk of funding being diverted for short-term gains in politics, instead of used to combat poverty and inequality." ARNAUD ROUSSEAU HEADS FRANCE'S LARGEST FARMING UNION, FNSEA "Madame president, your budget proposal and CAP are nothing but a provocation to the agricultural community. Rethink your approach. "There will be no rise of Europe's power if food rearmament is not undertaken." (Reporting and editing by Frances Kerry, Charlotte Van Campenhout Kate Abnett Simon Johnson Anita Komuves Sybille De La Hamaide)
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Report: Vegetation losses from Greek wildfires raised soil temperatures sharply
According to research released by the Athens National Observatory on Wednesday, soil temperatures around Athens have risen in some areas by up to 10 degrees Celsius after large fires destroyed vegetation. Meteo, a unit of the state-supervised institute for research, analyzed high-resolution data from satellites that could record ground surface temperatures in great detail. This tool shows the impact of disasters such as forest fires on a microclimate. The summers in Greece are becoming increasingly hotter and drier, as the winds change rapidly. This leads to more destructive wildfires which are difficult to control. In August last year, Greece experienced its hottest summer ever. A woman was killed and 10,000 acres of land burned in a wildfire which spread from a nearby forest to the northern suburbs of Athens. Meteo stated that a comparison of two hot periods, July 2024 before the devastating fires which ravaged the village Varnavas, and June 20,25, revealed temperature differences in many areas of up to 1-2C. This can be attributed in part to the natural variations of weather conditions. The report said that the loss of vegetation had a strong effect on the surface heating. The report stated that the loss of vegetation was a major factor in surface heating. Meteo stated that even though the measurements are for the soil surface temperature, it's reasonable to expect similar, if smaller, differences in the air temperature near the ground surface. According to the EU's Copernicus Climate Change Service, the global surface temperature in May was 1.4C warmer than the pre-industrial period between 1850-1900. Scientists believe that the burning of fossil fuels is the primary cause of climate changes. (Reporting and editing by Aidan Lewis; Daria SitoSucic)
Brazil takes on hotel costs for COP30, under pressure by developing nations
Brazil assured governments that it had enough rooms for the tens and thousands of people expected to cram into the rainforest city Belem in November for the United Nations Climate Summit, even though its listings fell short of their own projections. Valter Correia is Brazil's Special Secretary for the Summit, also known as COP30. He laid out a strategy to prioritize the needs and concerns of the developing countries, including island nations, who expressed their outrage at the high accommodation costs in Belem during a Bonn conference.
He said, "We guarantee that everyone will be able to come at affordable prices." "We cannot leave out small countries or countries who suffer the most from climate change issues. It would be unthinkable."
After three years of the climate summit being held in countries that did not allow for full public protests, environmental activists around the world eagerly anticipated Brazil's hosting the event.
Brazil chose Belem as the venue for the climate talks in order to draw attention to the disappearing rainforests around the world. However, civil society groups have warned for months about the lack of accommodation available in the Amazonian City.
Correia stated that authorities have identified more than 35,000 rooms in the city. This is compared to a figure of 20,000 that United Nations officials had told their Brazilian counterparts was required to accommodate delegations, journalists, and observers. Correia projected that 45,000 people would attend COP30, but the actual number is lower. He said Wednesday that he expected Belem will be able to meet the additional demand once more private homes, hotels rooms, and other alternatives, such as repurposed school, become available. UNFCCC's climate change office declined to confirm this number.
Correia stated that Brazil launched this week a website for booking 1,500 rooms, with prices ranging from $100 to $220 per night, for a group consisting of 98 island and developing nations. He added that another 1,000 rooms, priced up to $600 per night, will be added soon to the platform, which is open to all delegations. Later, the platform will be opened to all. Brazil has also announced that it has signed contracts for 3,900 cabins on two cruise ships which will be parked in the port city during the COP.
Correia also said that he expects groups from the civil society to be able to find accommodations. He said that while his office fights price gouging it will not be able offer rooms to everyone at lower prices.
(source: Reuters)