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Howery, the US envoy to Greenland, meets with officials in Greenland amid Trump's interest for the island
PayPal co-founder Kenneth Howery will meet with officials from Greenland, Denmark and Nuuk in Nuuk, this week, on his first trip to the Arctic Island. This comes amid tensions surrounding President Donald Trump's desire to acquire the semi-autonomous area. The relationship between Denmark and the United States has been strained ever since Trump revived talks of taking Greenland from Denmark. The U.S. Embassy posted a photo on Instagram of Howery and Greenland Foreign Minister Vivian Motzfeldt. Greenland’s government announced on Saturday that the meetings of the Joint Committee (also known as the Permanent Committee) and the Joint Committee (also known as the Joint Committee), which alternately take place in Greenland and with the U.S.A., are a forum to discuss civilian and military co-operation, including the American presence on this strategically located island. Motzfeldt stated in a press release that "these committee meetings are intended to promote direct dialog and cooperation with the United States regarding several areas of civilian and military importance." Washington claims that Greenland is a Danish territory and vital to the U.S. for its security, especially the early-warning ballistic missile system. The shortest route between Europe and North America passes through the island. Motzfeldt said that trust and respect were the foundations of any partnership. It is no secret, however, that the last year was challenging. The Danish foreign ministry refused to comment on the participation of Denmark. The Danish and Greenland government have both ruled out a cession of the island's resource-rich resources to the United States, although Denmark admitted neglecting its military capabilities. (Reporting and editing by Jacob GronholtPedersen, Soren SirichJeppesen; additional reporting by Stine Jacobsen)
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Turkey's gold price spread shrinks as demand increases
After a period when the global gold price surged in the fall, the spread between the physical gold prices in Turkey, and the global market level has shrunk sharply, traders reported. The spread between gold prices in Turkey denominated in TL and their global equivalents peaked at over 5%. The spread between the TL-denominated price of physical gold in Turkey and the TL equivalent of global prices peaked at more than 5%. Traders said that the wide spread had affected the lira during the fall as the surge in gold demand was met by imports. Retail flows in Turkey have seen a decrease in demand for gold and foreign currency, but an increase of gold supply. In recent weeks, this shift has relieved pressure on Turkey’s external balances as well as the lira. The reversal is due to a number of factors, including a drop in FX protected deposit (KKM), the end of soaring global gold prices and the decline in local demand, which was strong in the summer months. The value of KKM deposit has dropped to $600m from its peak of $140billion in August 2023. The FX and Gold supply for client-based transactions has also increased significantly over the last week, especially in Istanbul's Grand Bazaar. The dollar/TL rate remained steady at around 42,5 during this time. One FX trader stated that the local sharp demand for Gold has stopped. He added that gold supply has been increasing since late November. Turkey's central bank estimates the country's gold reserves - stored in metal at home or "under-the mattress" - to be almost $500 billion. In Turkey, physical gold has been the preferred investment to combat high inflation. Gold spot prices have risen from $3,500 per ounce in early September, to $4,378 an ounce in October, a 25% increase, before dropping to $4,200 currently. (Reporting and editing by Jonathan Spicer, Daren Butler and Nevzat Dvranoglu)
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Finmin: Indonesia will impose a coal export tax up to 5% in the next year
Purbaya Yudhi Sadewa, Indonesia's Finance Minister, said that the country plans to tax coal exports between 1% to 5% in 2019. This is part of a drive to increase revenue for the state. According to data from the mining ministry, Indonesia was a major thermal coal exporter in 2013, with shipments of 555 millions metric tons. This is two-thirds of the total 836 million tonnes of production. Purbaya did not provide any further details on the implementation. He had said that coal export taxes could generate 20 trillion rupiah ($1.2billion) in revenue next year. Gita Mahayarani, executive director of the Indonesia Coal Miners Association, said that they hope there will be a threshold price for duties. She said: "We believe that this approach will allow the government to achieve its goal of increasing revenue while also ensuring the industry is not burdened with excessive costs, thereby maintaining operational sustainability." Exports of coal have been affected by the slower demand in China, a major buyer. Exports between January and October were down by 4% on an annual basis at 320.47 millions tons.
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Gold prices rise on Fed rate cuts and a weaker dollar
Gold prices increased on Monday due to growing expectations that the U.S. will cut interest rates, which pushed up the dollar ahead of this week's Federal Reserve policy meeting. By 0851 GMT, spot gold had risen 0.3% to $4.209.43 an ounce. U.S. Gold Futures for December Delivery fell 0.1% to $ 4,239.40 an ounce. Dollar-priced Gold is now more affordable to overseas buyers thanks to the dollar index, which has been trending lower since December 4. The gold price is rising due to a lower dollar, and the market expects that the Fed will cut rates this week. This was stated by UBS analyst Giovanni Staunovo. Last week, data showed that U.S. consumers spent more in September. This reflected a slowdown of the economic momentum, despite rising costs and weakness on the labour market. Private payrolls in November saw their biggest decline in more than two-and-a half years. CME's FedWatch tool shows that markets have priced in an 87% chance of a rate cut of 25 basis points at the Fed meeting on December 9-10, after the release of weak data and the dovish comments of several Fed officials. Gold is a non-yielding asset that tends to be in high demand when interest rates are low. Staunovo added, "We are still looking for rate cuts in the coming year. This should push gold up to $4,500/oz." Silver rose 0.3% to $58.43 an ounce after reaching a record-high of $59.32 per ounce on Friday. Silver is also benefiting from this factor. Staunovo added that the expectation of improved industrial demand due to monetary and fiscal stimuli helped silver outperform gold over recent weeks. White metal prices have doubled this year due to supply shortages and the designation of the mineral as a critical one by the U.S. Palladium and platinum both rose to new highs. (Reporting and editing by Susan Fenton in Bengaluru, with Pablo Sinha reporting from Bengaluru)
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Draft document reveals that EU will weaken reporting requirements on environment.
A draft EU document that was seen by revealed that the European Commission had drafted proposals for further cuts to EU environmental laws. The proposal targeted requirements on industries to report their pollution and waste. The draft proposal is due to be released on Wednesday and is part of "omnibus" efforts by the European Union to reduce bureaucracy in business and to cut down regulations that are said to hurt the profitability of industries. ENVIRONMENTAL MANAGEMENT SYSTEM The environmental regulations in Europe are among the strictest in the world. They cover things like CO2 emissions and water quality, as well as bans on harmful chemical substances. According to the draft document, the Commission, which is the EU's executive body, will propose that the EU no longer requires industrial facilities and livestock farms to have an "environmental Management System" (EMS) that details their actions to reduce waste and pollution. A company can instead do a streamlined EMS that covers all of its sites, and some EMS requirements will be scrapped, such as the requirement to disclose hazardous chemicals in facilities. In addition, the proposal would eliminate the requirement that industrial facilities have a "transformation" plan to align themselves with climate goals. Livestock and fish farms also would not have to report on their water and energy usage. The proposal also simplifies environmental assessments of industrial and energy projects. The draft stated that "this simplification package...aims to ensure the environmental goals of European Union are met in a more cost-effective, efficient and intelligent way." A spokesperson for the Commission declined to comment on the draft as it could change before publication. Changes to EU law would need approval from EU governments and countries. Cut Administrative Costs The draft stated that the combined plans could reduce administrative costs by approximately 1 billion Euros per year. Brussels set the goal to reduce reporting burdens for companies by 25% by 2029. Some businesses and governments have called on Brussels to weaken its green measures in order to compete with competitors from China and the United States. This year, the EU has delayed its anti-deforestation legislation, exempted tens of thousands of companies from reporting sustainability and due diligence requirements, and weakened the green conditions associated with farming subsidies. Brussels has been accused by environmental campaigners, businesses and investors of gutting the laws that help to manage climate change risks and encourage capital into the green transition. The EU has not changed its climate change goals, but is under pressure from some governments to weaken certain policies to reduce CO2 emission - such as the bloc's ban on new CO2-emitting vehicles by 2035. (Editing by Timothy Heritage).
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TotalEnergies merges British North Sea Assets with Repsol’s NEO NEXT
TotalEnergies announced on Monday that it would merge its British North Sea oil assets with NEO NEXT Energy. This is a partnership between Spain’s Repsol, and HitecVision. Total said that it would take a 47.5% share in the renamed NEO NEXT+ as a trade for its assets. The company made the announcement in a Monday statement. Repsol will have a 23.625% stake in the venture while HitecVision holds the remaining 28.875%. The statement stated that NEO NEXT+ will have a production capacity of over 250,000 barrels oil equivalent per day by 2026. This deal is part of a recent trend by European oil majors in recent years to combine assets in Britain’s North Sea. It follows the merger between Shell and Equinor in December 2024, and Ithaca Energy’s purchase Italian Eni’s North Sea oil-and-gas producing assets. Analysts said that mergers may affect tax revenues. The British government has imposed a windfall-tax in response to a surge in energy costs in 2022. Analysts at RBC stated that "while companies will push for greater operational efficiencies and cost reduction, one of the main losers is (British Tax Revenue and Customs). The combined entities are likely to pay lower tax to the UK Government than they would separately." According to the companies, the deal will be completed in the first half 2026, pending regulatory approval. The merger of Repsol and NEO Energy took place nine months ago. Reporting by Mireia Mercino, Forrest Crellin and Alba Kacher, editing by Inti landauro and Susan Fenton
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Sources: China refiner expands despite sanctions
Two people familiar with the project said that a Chinese refinery operator, whose main business suffered when Washington sanctioned it in May over its purchase of Iranian oil, is pushing ahead with a $3.6billion petrochemicals extension project. Construction at the Xinhai Chemical Site in Cangzhou, north China, shows how independent refiners in the country, Iran's biggest oil customers, maintain their business despite being on the growing Western blacklists aimed to curtail oil revenues for governments such as Tehran and Moscow. State media reported that Hebei Xinhai Holdings Group, the parent company, announced a plan in early last year to convert the refiner into a producer of chemicals. The plan was worth 50 billion yuan. A person with first-hand knowledge of the project said that half of this investment will be used for the first phase, which is scheduled to be completed by the end of 2026. The source declined to identify themselves due to the sensitive nature of the subject. The U.S. Treasury designated Xinhai Chemical (the unit that operates a refinery with a capacity of 120,000 barrels per day) and several Chinese oil terminal operators in May for purchasing hundreds of millions of dollars' worth of Iranian crude oil as part of efforts by President Donald Trump’s administration to press Tehran to curtail its nuclear activities. The initial sanctions caused disruptions to Xinhai Chemical (the main business unit of Xinhai Holdings), including the suspension of state banks' services. According to a source familiar with the expansion, and another person who was also aware of it, the refinery found a way around the restrictions by using entities that were separate from the blacklisted company and continued to import Iranian oil. One of the employees said, "The company recovered from its initial, short disruptions." Xinhai Holdings & Xinhai Chemical have not responded to requests for comment. The U.S. Treasury declined comment. One source said that the expansion was being managed by Hebei Zhixiang Chemical New Materials which is independent of Xinhai Chemical. The company's registration details were not found. Worksheets for TEAPOT Reports have indicated that other independent Chinese refiners, or "teapots", which are subject to sanctions in this year, have also moved their activities to separate firms to maintain business. Tan Albayrak is a Reed Smith sanctions lawyer in London. He said that some teapots sanctioned by the government are renaming themselves and reorganizing their operations. Albayrak, in discussing sanctions generally, said that if the new entity was seen as an 'offshoot' of the sanctioned entity it may deter other parties from doing business with it, depending on their commercial risk appetite. The sanctions may have slowed down or even stopped the Xinhai project, but according to two experts in the industry the project might opt to rely on local know-how and equipment. One source said that the Xinhai facility under construction includes a 3,000,000 metric ton-per-year (MTPA) hydrocracker unit, a 1.2,000,000 tpy aromatics plant, and a 3.5,000,000 tpy TDP (toluene diproportionation) plant. The plant is scheduled to open during the first half 2027. It will produce mixed-xylene for paints and detergents as well as benzene, gasoline additive methyltert-butylether (MTBE), propylene oxide and polyisobutylene. Xinhai Chemical is one of the few plants in China with a quota for oil imports that exceeds 74,000 bpd.
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Copper record high before Fed rate decision
The copper price opened the week strongly, reaching a new record on Monday. This was boosted by the expectation of a rate cut from the U.S. Federal Reserve, and the prospect of squeezing supply. The Shanghai Futures Exchange's most active copper contract closed the daytime trade 1.54% higher at 92,970 Yuan ($13152.91) a metric ton. Shanghai copper reached a record high of 93,300 Yuan in this session. The benchmark three-month Copper on the London Metal Exchange gained 0.79%, to $11,712 per ton at 0700 GMT. It had previously reached a high of $11,771. The markets are pricing in an interest rate reduction of a quarter point by the U.S. on Wednesday. Only 19 out of 108 economists voted against any change. Copper prices rose in Asia as signs of a lower supply were evident. The weekly stock report of the SHFE showed that the amount of delivered copper in SHFE sheds had declined by 9.22% at the end of the last week. This was the second week of declines. Last week, cancellations were also observed in copper stocks available or on warrant in LME warehouses. Copper inventories at the U.S. Comex Exchange The number of short tons (which is equivalent to 396,306 tons metric) has continued to rise after reaching a record in late November. Analysts at Chinese broker GF stated that the strength of copper is due to a structural mismatch in supply and available stock as a persisting Comex-LME Premium has diverted metal towards the U.S. tightening the supply in the remainder of the world. The disruption of mines in China and the agreement by major smelters to reduce output by 10% have also fueled supply concerns. Citi analysts said in a Friday report that they expect the price of copper to rise into next year. They estimate it will average $13,000 per ton in the second quarter, up from their previous forecast of $12,000. On Monday, the prices of most base metals rose. Aluminium, zinc, lead, and tin all gained in value. Aluminium rose by 0.57% on the LME, while zinc, lead, tin, and tin-copper all gained 0.45%. Nickel, however, posted a loss of 0.17%. $1 = 7.0684 Chinese Yuan Renminbi (Reporting and editing by Dylan Duan, Lewis Jackson)
Jamaica and Small Islands warn COP30 of the importance of 1.5 as a "lifeline".
The COP30 Climate talks begin in Brazil this Week
Small island states are pushing for a new push to 1.5C.
The discussion will also include how to pay climate damages
Clar NiChonghaile
UnaMay Gordon is a former director for climate change at the Jamaican Government and advisor to the Caribbean Community Climate Change Center that coordinates climate action.
We lost our cultural heritage. 300-year old churches are gone. It also took a part of our own identity with it. Gordon told reporters that "people are hurting".
According to Jamaica's Prime Minister, the strongest storm ever to hit the island left dozens of dead and caused billions in damage. This is roughly equivalent to 28-32% of last year’s gross domestic products.
According to Imperial College London scientists, a Melissa-type storm at landfall today is four times more probable than in a preindustrial baseline.
Gordon urged negotiators to take more action to limit global temperatures to 1.5 degrees Celsius (2.7 Fahrenheit), the target set in the Paris Agreement ten years ago. This goal is now in greater danger.
Scientists claim that a temperature increase of 1.5C will cause irreversible changes such as melting ice sheets and accelerating sea level rise. This is a serious risk to small islands.
The U.N. Environment Program stated in a report released last week that the world will soon surpass this goal. U.N. Sec.-General Antonio Guterres described it as a "redline for humanity" in his Belem speech last week.
Science tells us now that a temporary exceedance of the 1.5 limit is inevitable, and will start at least in the early 2030s. He said that we need to make a paradigm change in order to reduce the magnitude and duration of this overshoot.
The Alliance of Small Island States proposes a COP30 item that will track climate targets more aggressively as countries' plans veer from course.
Toiata Apelu Uili, mitigation Coordinator for AOSIS and Samoan, who travelled two days from Belem to Belem, said, "Small Island states are here demanding we honor 1.5."
"It's not a slogan. This is the lifeline to our survival and that of our small islands. "Our survival, the lives of our people and our own are not negotiable.
"PAY UP"
By 2035, the global emissions of planet-heating gases would have to drop by 60% from their 2019 levels.
According to a U.N. update of the countries' Nationally Determined contributions, or climate plans, they are projected to fall by only around 12%.
AOSIS has said that COP30 should work to correct the course of the world, a demand supported by the Least Developed Countries Group (LDC), which represents 44 countries most vulnerable against climate change.
Evans Njewa (Malawian Chair of the LDC Group) told reporters Monday that the world cannot allow the 1.5C target to be lost.
He said: "COP30 should deliver a credible road map to address the gaps in finance, ambition and implementation. Not promises for the future but commitments for today, backed up by adequate resources, and the best science available," he added.
Small island states and LDCs also want more financial assistance to decarbonize their economies, and to adapt to climate change-related extreme weather.
Years ago, the most difficult COP discussions centered around who should pay for this climate bill.
During the COP29 last year in Baku, Azerbaijan, countries adopted a global finance target of $300 billion a yearly, but this was criticized by many countries as being insufficient.
The Baku-Belem Roadmap will be at the heart of the COP30 discussions. This is a blueprint developed by Brazil and Azerbaijan that aims to mobilize a minimum of $1.3 trillion a yearly climate finance for developing nations by 2035.
The hosts, Brazil, have called this "the COP of implementation". They hope to inspire the global mutirao. This is a Portuguese term derived from Indigenous Tupi and Guarani languages that refers to groups coming together to complete a common task.
Some fear that progress will be hard to make, especially with President Donald Trump calling the climate change issue a "con-job" and political and budgetary pressures pushing it back.
Gordon, who attended the 2015 Paris talks, wants the COP to hold the biggest emitters accountable for the 1.5C target and provide financial support to the most vulnerable nations to prepare and survive climate disasters.
(source: Reuters)