Latest News
-
Japan's nuclear regulator has cleared Hokkaido Elec Tomari reactor's safety review
The Nuclear Regulation Authority of Japan approved on Wednesday the safety review for Hokkaido Electric Power’s No.3 nuclear reactor at the Tomari Nuclear Power Station after more than 12 years. This was a requirement to restart its operations. The reactor was closed in 2012, as part of an overall push to improve safety following a massive earthquake that occurred the year before. This earthquake disabled cooling systems in Tokyo Electric Power Co’s Fukushima Daiichi Plant and caused the worst leakage of radioactive materials in 25 years. A spokesperson for the NRA said that at its regular meeting it concluded that the safety measures in the Tomari reactor met new regulatory standards, and that the plant passed the test. Now, the focus will be on obtaining local community approval for restart. Hokkaido Electric aims to finish construction of the seawall by March 20, 2027, and restart the 912 megawatt reactor as quickly as possible after that. Japan is heavily dependent on imports of fossil fuels. The government wants to see nuclear power play a larger role in the energy mix for the country and its energy security. Currently, the country operates over a dozen nuclear reactors with a combined power of 12 gigawatts. Many other reactors are being relicensed to meet the stricter safety standards that were implemented following the Fukushima catastrophe. Japan had 54 reactors in operation before 2011. Japan wants nuclear power to account for 20-22% (of its total electricity) by 2030, despite the difficulties the industry has faced since then. Nuclear power will account for 8.5% in 2023. (Reporting and editing by Jan Harvey; Yuka Obayashi)
-
Earnings in the Gulf are below expectations.
Investors were watching global trade developments and the looming U.S. deadline for tariffs as they watched major Gulf stock markets in early trading on Wednesday. Investors have become more cautious since trade talks between China and the U.S. ended without a substantive agreement. The tariff policies of U.S. president Donald Trump continue to cause concern about global growth. Potential slowdowns in consumption and trade could threaten energy demand, and the fiscal security of Gulf economies that are dependent on oil. Saudi Arabia's benchmark stock index fell 0.1% due to a series of unbalanced earnings in key sectors. Halwani Brothers dropped 3.8% and Nahdi Medical fell 4.5% following the companies' reported drop in second-quarter profit. Halwani’s profit collapsed by nearly 85%. Dubai's benchmark stock index was flat after reaching a near two-decade-high in the previous session. This was due to a drop of 1.9% in Mashreqbank which reported a 17% decline in profit year-on-year for its second quarter. The Abu Dhabi Index edged lower on mixed earnings that dampened investor appetite and disrupted the momentum from the previous weeks robust results. Americana Restaurants International (ARI) and ADNOC Drilling (ADNOC) both added 0.5% after ARI's second quarter earnings increased year-on-year, but fell short of estimates. The latter kept its full-year forecast unchanged despite solid gains. Qatar's benchmark indices fell 0.1% amid a broad-based drop as investors locked in profits after a recent rally which pushed the index up to a two-and-a half-year high. Qatar Islamic Bank, which fell by nearly 1%, led the losses. Investors in the region were focused on the U.S. Federal Reserve policy announcement, which is due later that day. The Fed is expected to keep interest rates the same, but markets are prepared for possible dissension by central bank officials who may favor lower borrowing costs. The Fed's position has significant implications for Gulf economies. Most currencies in the region are pegged to U.S. dollars, which makes it a key anchor of regional monetary stabilty. (Reporting and editing by Mrigank Dahniwala in Bengaluru)
-
Mercedes-Benz reduces its profit forecast due to US tariff impact
Mercedes-Benz cut its forecasts for annual sales and profit margins on Wednesday. The company cited a $420 million hit from U.S. Tariffs in the second-quarter. The German luxury automaker expects to achieve a profit margin between 4% and 6% in its car business for this year, and a group revenue that is "significantly lower" than the levels of 2024, for both its cars and vans. In February, before the U.S. Tariff Changes, the company said that they expected the profit margin of its car division this year to be 6-8%, after 2024 earnings had fallen 30%, with a 40% drop in the auto business. In April, it retracted that guidance. It said that if tariffs were excluded, the unit's outlook for margins would have been lower than the original guidance. Mercedes shares fell 1.5% at the opening of Frankfurt trading. The results reflect the wider impact of Trump's policy on tariffs, which saw European automakers being hit with higher U.S. Import taxes this year. Volkswagen's Porsche luxury brand cut its profitability target for the full year on Wednesday. The U.S. and the EU reached a framework agreement on trade on Sunday. It imposed a 15% tariff on the majority of EU goods, half the rate that was threatened. This prevented a larger trade war between these two allies who account for nearly a third the global trade. Mercedes reported that the impact of tariffs on its adjusted operating profit margin (EBIT) in the second quarter was 150 basis points. According to calculations, this amounted approximately to 362 million euro ($418) according to Mercedes. The trade agreement was welcomed by Chancellor Friedrich Merz, as it avoided a trade war that would have severely hurt Germany's export driven economy and large auto sector. BENEFIT OF A TRADE DEAL Morningstar analysts said in a Monday research note that Mercedes was among the biggest beneficiaries of the U.S. EU trade deal because it imports more from Europe than Mexico or Canada. The company also manufactures cars at its U.S. factory in Tuscaloosa (Alabama). The second-quarter operating profit of the company has more than doubled, to 1,99 billion euros (2.30 billion dollars). In a press release, the company said that tariffs and efficiency measures, as well as a 750-million-euro impact from a sale of an Argentine plant and reorganization, further lowered their reported EBIT or operating profit to 1.27 billion euro. The company's revenue dropped by 9%, to 33.15 Billion Euros. This was due to lower sales of cars and vans as well as tariffs. Jefferies stated in a report that the sales and operating profit numbers were "no surprises", pointing out lower volume, price and sales figures in China. It had announced earlier this month that unit sales in China would decrease by 10% and 19% respectively in the first quarter and second quarter of 2025, compared to last. Due to the intensified local competition, both the company and other German automakers are facing a decline in China.
-
Gold prices rise as the dollar weakens ahead of Fed decision
Gold prices rose on Wednesday as investors waited for the Federal Reserve to announce its policy and make comments that might provide more clues about the timing of their next moves. As of 0828 GMT, spot gold rose 0.2% to $3,331.03 an ounce. U.S. Gold Futures climbed 0.1% to $3,328.30. Gold became less expensive to holders of other currencies after the dollar index fell by 0.1%. "There is a combination of factors that are holding gold prices back." "From a geopolitical perspective, we seem to be making some progress in the tariff negotiation but no one is willing to commit to anything," StoneX analyst Rhona o'Connell stated. After two days of constructive talks between the U.S. and China in Stockholm, officials will continue to monitor the negotiations between the U.S. and China. Both sides have agreed to extend their 90-day truce on tariffs. Investors were reassured by the trade agreements reached with Japan and the European Union last week. This week, the risk sentiment on the stock market has also been lifted. The Fed is expected to maintain rates on Wednesday despite President Donald Trump's repeated calls for them to be lowered. The markets will be watching Fed Chair Jerome Powell for further clues about the rate path. The markets have priced in two cuts by year's end, which is probably too mild. "The Fed will not yield to political pressure, but it will be fascinating to see if the vote is unanimous today," O'Connell stated. In an environment of low interest rates, gold tends to perform well. Other than that, silver spot fell 0.4% per ounce to $38.04, platinum dropped 1% to 1,381.69, and palladium dropped 0.5% to 1,252.40. (Reporting by Brijesh Patel in Bengaluru; Editing by Ronojoy Mazumdar)
-
The tsunami warning in Japan brings back memories of the Fukushima catastrophe
Residents along the Pacific coast of Japan rushed for higher ground as tsunami warnings were issued following a massive quake off Russia's Far East. The earthquake brought back painful memories from the 2011 nuclear disaster and earthquake. The television banners read "TSUNAMI!" EVACUATE!" As tsunami waves approached Japan, broadcasters issued similar warnings. They cut their regular programming and focused on evacuation orders. "Do not stare at the screen." Evacuate now!" A news presenter from the public broadcaster NHK yelled. The warnings brought back memories of the March 11th, 2011 earthquake. More than 15,000 died when a 9.0-magnitude earthquake triggered a tsunami that ravaged the Fukushima Nuclear Power Plant and caused a radiation disaster. Residents were unable reach higher ground as waves dozens of meters high surged along the northeastern coast of the country. Residents recalled these events on Wednesday as evacuation warnings are issued. A woman from Fukushima said to NHK: "Everyone evacuated higher ground when the earthquake struck previously, so I considered doing the same." After the evacuation warning, workers in low-lying parts of Tokyo Electric Power’s Fukushima Nuclear Facility suspended decommissioning and fled higher ground. The spokesperson stated that the evacuation was not a safety issue. Over 2 million people were told to move to safer areas along the Pacific Coast. Locals called the 2011 disaster "3.11", and many recalled the lessons learned. They braved the heatstroke risk in the intense summer months to reach higher grounds. TV Asahi reports that a woman aged 58 died in Japan's Mie Prefecture when her car fell from a cliff as she evacuated. A representative of the Japan Meteorological Agency has warned that tsunami waves may continue to strike for up to a week. NHK reported that a male postal worker from Iwate Prefecture said, "I worked at the same office 14 years ago." This time, we all said "let's evacuate immediately." (Reporting and editing by Saad Saeed; Satoshi Sugiyama)
-
Iron ore prices fall as China's stimulus fades
Iron ore futures prices fell on Wednesday, as expectations of further stimulus from China's top consumer faded. This erased gains made earlier in the week that were based on the prospect of an extension of the tariff truce between America and Asia. The September contract for iron ore on China's Dalian Commodity Exchange ended the day 0.44% lower, at 789 Yuan ($109.95) per metric ton. As of 0700 GMT, the benchmark September iron ore price on Singapore Exchange dropped by 0.91% to $100.80 per ton. The readout by Xinhua, the state media for the July Politburo that sets the course of economics for the remainder of the year, said China will keep its policy stable without specifying any concrete measures. This disappointed those who expected Beijing to take some steps to support the property market that is still struggling, and has been dragging down economic growth as well as consumption of industrial materials such steel. After two days of constructive talks, both sides in Stockholm described as productive, U.S. officials and Chinese officials decided to extend their 90-day trade truce. Treasury Secretary Scott Bessent has quashed any expectations that Donald Trump would reject the extension. The International Monetary Fund also raised its forecast of China's growth to 4.8% this year from 4.0%. This boosted sentiment and contributed to price increases. After a jump of over 6% in the morning, gains in coking coal, a steelmaking ingredient, and coke, slowed in the afternoon. They were up by 2.71% and 4.4% respectively. The benchmarks for steel on the Shanghai Futures Exchange have gained some ground. Rebar rose by 0.42%. Hot-rolled coils climbed by 0.81%. Wire rod gained 0.2%. Stainless steel gained 0.31%. ($1 = 7.1762 Chinese Yuan) (Reporting and editing by Amy Lv, Lewis Jackson and Janane Vekatraman).
-
Chinese refiner Yulong buys first Canadian TMX crude oil cargoes
Trade sources report that China's Shandong Yulong Petrochemical purchased its first Canadian crude oil cargoes via the Trans Mountain Pipeline (TMX) to be delivered in September and October, diversifying its supply. Two sources confirmed that Yulong purchased an Access Western Blend cargo from Macquarie for September delivery, at a discounted price of $1.50 per barrel compared to the November ICE Brent. It also bought a cargo from Totsa for October delivery, at a comparable discount to the December ICE Brent. Each cargo contains approximately 550,000 barrels. Yulong didn't immediately reply to an email asking for comment. Macquarie and TotalEnergies don't comment on commercial issues. Yulong made its first purchase of Canadian crude oil in September, when the refinery began processing 200,000 barrels per day. The AWB bitumen is a heavy, highly acidic diluted version of bitumen that's produced by Canadian Natural Resources (CNR) and MEG Energy. Trade sources reported that Yulong also made a recent purchase of Urals crude oil from Russia. They said that the refiner usually buys West African crude and Russian Far East ESPO-grade crude. (Reporting and editing by Florence Tan in Singapore, Siyi Liu in Singapore)
-
Rio Tinto reports smallest first-half profits in five years
Rio Tinto announced its lowest first-half profit in five years Wednesday as iron ore price remained low due to concerns about oversupply and weak China demand. This was offset by higher earnings from the copper business. The price of iron ore fell in the first half as the top steel consumer, China, decreased its steel production and increased supply from Australia and Brazil. This reduced Rio Tinto's earnings. Morgan Stanley notes that the expectation of China reducing overcapacity and restocking the steel industry before the end of 2025 could lead to an increase in price to $100 per ton by the end the year. Rio Tinto, world's biggest iron ore producer reported earnings of $4.81billion for the six-month period ended June 30. This was below the Visible Alpha consensus estimate of $5.05billion. This was the lowest first-half performance for the company since 2020. It reported earnings of $5.75 Billion. Rio Tinto has declared a lower interim dividend for the first half year of $1.48 compared to the $1.77 per share it paid out last year. (Reporting from Sameer Manekar in Bengaluru and Rishav Chaterjee in Melbourne, Melanie Burton in Sydney; editing by Subhranshu SAHU)
SPECIAL RELEASE-Less Rain, More Wheat: How Australian Farmers Fought Climate Doom
Curtis Liebeck, in a newly planted wheat field scoops up some sand and pours it through his fingers. The light brown dirt is a far cry from the clumpy, dark earth of more rainy nations.
The Liebeck farm in Western Australia is 300 km (186 miles), away from Perth. It receives half as much rain as the wheatbelts in central Kansas and northern France. The state's growing-season rainfall has decreased by one-fifth in the last three decades.
It should be harder to farm. Liebeck's yield of wheat has doubled in the last two years. Liebeck, 32 is part of the revolution in farm management which has allowed Australia to produce 15 million metric tonnes more wheat per year than it did in the 1980s despite the hotter and drier climate. This is the equivalent of around 7% of the wheat that is shipped around the world each year, and it's more than Britain's annual harvest.
According to U.S. Department of Agriculture statistics, Australia's wheat-farming productivity has surpassed that of the United States, Canada, and Europe. It continues to grow, while other developed markets are slowing or reversing.
Many growers and scientists say that the ability of Australia's wheat farmers to produce more for a growing world population is largely due to a series of innovations made since the 1980s. These innovations changed how farmers planted seeds, how they planted them, and the way they cultivated the soil. The Australian system of applied researchers and the relentless search for efficiency by farmers who receive minimal subsidies have accelerated these advances.
This account of the way Australia's wheat farmers defied climate odds is based upon interviews with over 20 farmers and scientists, a review and analysis of more than 12 academic papers, and an examination and analysis of decades worth of farm data and weather. Visited four farms, two government research facilities and a seed breeding company.
Australia's fields aren’t the most productive, nor is it the largest wheat producer. It is still important, but for two different reasons. The modest population of the country means that its extra production is used to feed other countries. It is also the driest continent, and climate instability could have made some farming unprofitable. It is one of the top exporters of wheat in the world.
Five scientists said that Australia's success in dry-crop land research has inspired other countries, such as the U.S., Canada and Australia. Although some Australian practices have been widely replicated, like soil reengineering, others, like the re-engineering of soil, are not as widespread, because the ground conditions may be less suitable. The country's focus in closing the gap between maximum theoretical crop yields, and actual results has spurred worldwide efforts to improve productivity during the last 15 years.
Ken, his 66 year old father, was amazed that Liebeck's farm produced 1 ton per hectare despite the lowest rainfall it had seen in half a decade.
Liebeck said: "I asked my dad what life would have been in his time and he replied, 'Absolute Disaster'."
In such conditions, the elder Liebeck said he would only have produced 400 kg per hectare around the turn-of-the millennium.
BEACH SAND
Australia's farming has always been precarious. Weather conditions can change from drought to heat, fire, and flooding. The soil lacks nutrients.
Official weather data shows that Western Australia has experienced the largest decline in rainfall average of Australia's cropping regions over the last three decades. The rainfall patterns have changed, with more rain falling in the summer when fields are fallow and less in the winter when crops are growing.
It also has some the most poor soils.
Imagine beach sand," Tress said Walmsley CEO of Perth based seed breeding company InterGrain. The company develops wheat strains that are better suited to Australian conditions. These soils are depleted of nutrients, toxic and resistant to water. At the end of every season, the crop is dehydrated.
The thirst for water was the catalyst for many changes in Australian agriculture. Scientists Reg French and Jeff Schultz calculated in 1984 that, under ideal conditions, Australia's growers should be able, after evaporation of water, to produce 20 kilograms per hectare of wheat for every millimeter rain received during the growing season from April to October -- four times more than they were currently achieving.
John Kirkegaard is a plant scientist with the Commonwealth Scientific and Industrial Research Organisation, the national science agency of the Australian Government. The researchers and growers focused on closing the yield gap and began benchmarking the water-use efficiency in order to extract more crop from each drop.
The key was to switch from tilling agriculture to no-till. The constant plowing of soil to control weeds damaged the soil and exposed it for evaporation. This reduced the amount water that could be stored by crops. The dust bowls of the 1930s in America gave rise to no-till techniques, which use herbicides rather than plowing. According to the Grains Development and Research Corp., Australian adoption increased from 5% to 80% in the early 1980s. Western Australia has a higher adoption rate than the rest of Australia.
Over time, the compacting of soils by farm equipment driving over tilled fields hampered water infiltration and root development. Farmers began to restructure the soils by spreading lime on them to reduce acidity and then using heavy machinery.
Liebeck shows off his deep ripper. It is a huge, orange steel frame with ten metal claws which can rip through soil up to 84 cm deep. The machine is so heavy that even his tractor with 540 horsepower can only pull it at a walking pace.
The spader is a rotating cylinder that has protruding shovels heads. It breaks up the compacted earth layers. No-till farming is a tillage method that does not use plowing or ripping to prepare the soil for planting. Spading and ripping are bolder, but less frequent interventions that often go deeper. The soil is restructured and the constituents are changed. Unproductive layers become a more absorbent mixture that holds water and nutrients better.
Liebeck stated that dragging the ripper across a field could increase his wheat yield between 36% to 50%. The machine cost A$220,000 (roughly $143,396). He said that the machine was "a bit expensive for a glorified hoe," but "digs up profits."
Farmers and researchers say that rippers and spaders may be used in other countries, but not as extensively as they are in Australia. In areas that are wetter, such as Europe and the UK, rippers can be difficult to pull through heavy soils.
Two-thirds of Western Australia's roughly 4,000 growers had deep-ripped, spaded or inverted their soil by 2023, state government-commissioned research found, up from 52% in 2019.
Kirkegaard said that efforts to improve Australian soil echo those in Europe and North America, where land is drained and then reclaimed from the sea. He said that the strategies used in Australia to turn poor farmland into productive land were probably unique.
Other innovations helped farmers curb disease. They introduced new crop rotating, including canola (also known as rapeseed), an oil seed, and lupins (a legume used in animal feed). Canola area in Australia has risen from 50,000 ha in 1989 to 3.5 mil hectares now, according to data provided by the agriculture ministry.
Kirkegaard explained that farmers began sowing up to four weeks early, and sometimes on dry soil, in order for plants to flower at the best time. Kirkegaard said that sowing began around mid-April. This gives wheat several months of growth during the winter and spring in the south, when there is still water available.
TAKE-OFF
Productivity soared. In the early 1980s, Western Australian farmers grew 3.3 kilograms of wheat per hectare, which is a third less than the national average. This was a third lower than the national average. In 2024 they were only one-fifth short of the national average of 11.5 kg.
These improvements have helped Australia double its exports of wheat in the past four decades, to over 20 million tonnes a year. The majority of the wheat is exported to Southeast Asia and Middle East where population growth has been rapid.
The rising production has held prices in check. In the 1980s, a bushel of Chicago Board of Trade wheat, which is the benchmark for the world, cost an average of $3.50. Since then, the world population has increased by 3.5 billion. However, a Chicago bushel now costs $5.50. This is a far lower increase than inflation.
Dennis Voznesenski is an agricultural analyst with Commonwealth Bank of Australia. He said that a serious threat to the Australian wheat supply could cause prices to increase significantly. He noted that Australia accounts for the same proportion of global trade as Ukraine before Russia's invasion. Wheat prices increased by 60% after the war caused disruptions in production and exports.
Farmers and researchers agree that there is still room to improve productivity.
Kirkegaard said that advances in seed breeding and farming management should increase maximum theoretical yields from 25 kg to 30 kg, and possibly even more.
According to Greg Rebetzke of the CSIRO, researchers and breeders have been testing wheat varieties whose protective sheaths - called coleoptiles – can be pushed up to a depth of soil between 10 and 12 centimeters, rather than 2 to 4 centimeters, allowing the seeds to penetrate the subsoil. According to Rebetzke, field trials have shown that long coleoptiles can increase yields up to 20%. Several varieties will be commercially available in Australia within the next five years.
Rebetzke explained that people are interested in the technologies developed by Rebetzke and want to know if they will be useful for their country. He cited Canada, India and Bangladesh as examples of countries with a high level of interest. "The dry climate we are experiencing is the future for some countries which are currently wetter."
Researchers in Western Australia have been experimenting with soil re-engineering, including the addition of clay, compost, and gypsum, to increase the earth’s ability to retain water and produce grain, according to Gaus Azam.
Ty Fulwood is a grower from Grass Valley in the east of Perth who showed what was achieved. He said that they were trying to make the perfect soil by adding clay to the top 10 centimeters of soil.
Fulwood admitted that the system is expensive but, if it can deliver on its promise of doubling yields, researchers and farmers will invest money in it.
There are limits to adaptation. Wheat does not thrive in conditions of high temperatures, as they accelerate the evaporation process and growth phase. The rain is decreasing and becoming less predictable.
In a paper published in 2017, plant scientist Zvi Hochman found that hotter and drier conditions reduced Australia's maximum wheat yield achievable by 27% from 1990 to 2015.
Hochman said that if we continue to work hard, we could achieve 80% of the potential yields. But going beyond this in a climate with a high degree of variability is unlikely to be economically viable.
There are also downsides. Scientific studies have shown that herbicides are harmful to the environment and can encourage resistant weeds. Australian farmers use more synthetic nitrogen fertilizer, even though it is less per hectare, than other countries, according to U.N. This is made using natural gas which contributes to carbon dioxide emissions. They are also affecting the Earth on a large scale.
Azam, a researcher, said: "We must always be careful because we disturb the natural soil." "But benefits far outweigh risks."
Other Nations
Australian yields are low compared to global standards due to challenging soil and weather conditions. USDA data shows that Australia's yield of 2.6 tons/hectare was lower than the U.S. (3 tons), China (5.9 tonnes), and Britain (7 tons) last year.
Since the 1980s, some developing nations have improved wheat yields faster than Australia, including China, India and South Korea. According to the USDA however, productivity growth has been slower in many advanced economies. This is due to soil degradation, restrictions on pesticides and fertilizers, and other factors.
Scientists and farmers credit Australia's low-subsidy system and its applied research system for setting it apart.
The Grains Research and development Corp is a statutory company established by parliament in 1990 to drive innovation within the industry. The government adds funding to the 1% that farmers give. The committees are made up of farmers, scientists, and agribusiness executives. Kirkegaard said that the research agenda doesn't revolve around farmers looking for quick fixes or scientists working on blue-sky projects.
This model is not replicated by many countries. Canada also has research groups that are funded by levy, but they're less centralised. Kirkegaard says that in Europe, researchers might never have spoken to a farmer. This can lead to studies that are not practical.
According to the OECD, Australia is among the countries with the lowest levels of agricultural subsidies. They are mainly used for biosecurity and research, not payments to farmers.
Liebeck, who lives in a farmhouse surrounded by eucalyptus trees, said that he's not intimidated by the increasingly hostile climate.
He said, "The challenge to grow more crops with less rain is thrilling." "I'm optimistic."
(source: Reuters)