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Costco's sales surpass estimates, as gas discounts and bulk purchases attract inflation-weary consumers
Costco Wholesale surpassed quarterly sales estimates on Thursday. Inflationary pressures pushed consumers to discount gas stations, and warehouse demand increased. According to LSEG, the warehouse retailer beat analysts' expectations of $6.53 per share by reporting adjusted earnings of $6.60 in the fourth quarter. The quarterly revenue rose by about 11% from a year ago to $95.72 Billion, exceeding Wall Street's estimates of $94.86 Billion. Total same-store revenue excluding 'gas and foreign exchange effect' rose 6.7%. This was higher than analysts' expectations. Costco's low-priced bulk model, along with its discounted fuel offer, has helped to attract shoppers amid the persistent cost pressures. Arun Sundaram, CFRA analyst, said that Costco had another well-rounded third, with its comparable sales growth leading all other big-box retailers, thanks to balanced traffic and an increase in average ticket. The CEO of the company, Ron Vachris, said that gasoline was a major sales driver. Oliver Chen, TD Cowen's analyst, says that Costco gas stations are attracting customers who are price sensitive as fuel prices rise due to the Iran War. Costco CFO Gary Millerchip revealed in a call following the earnings that the company had received 'tariff refunds' of $184m during the third quarter, under the International Emergency Economic Powers Act. Ron Vachris, CEO of Ron Vachris, said that the refunds were reinvested in price reductions for some products, such as essentials, meats, beverages and non-food items. As shoppers consolidate trips, they are buying more groceries and other essentials on a single trip rather than making multiple trips. In extended trading, the company's shares were unchanged. The stock had risen by nearly 4% this year as of Thursday's closing.
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Beyond the high-profile conflicts, there is a global battle for resources
Pakistani media reported that the militants who attacked a lithium mine in Balochistan, Pakistan, last month, had a clear message. They destroyed equipment and briefly held employees, indicating they would no longer tolerate mining in the area. Foreign and local mining companies should also stay away. While the Middle East wars and Ukraine conflict dominated headlines, and as the United States and China negotiated their still largely non-violent face-off culminating with the meeting between President Donald Trump and Xi Jinping last week, a number of other overlapping conflicts over resources have raged throughout the 'world in 2026. The US, European Union, and Pacific governments are locked behind the scenes in a high-stakes race that is still escalating to separate themselves from China when it comes to the resources that drive modern technology. The conflict in Central Africa is fueled by rare earths, minerals and gold. In Sudan, the civil war continues to be fuelled largely by smuggling of gold that goes into the pockets of groups devoted to ethnic violence. This week, world leaders will gather in New York for the annual United Nations General Assembly. But much of the global conflict is now taking place behind closed doors with dramatically rising stakes. The US-Iran conflict in the Gulf, sparked by US-Israeli Operation Epic Fury - has now been widened and includes a worsening confrontation between Saudi Arabia and Iran backed Houthi rebels. This could cause a shock to the energy supply that would significantly derail the global economy. OpenAI Chief Executive Sam Altman, among others, briefed the Security Council on the issue of artificial intelligence, which is rapidly evolving. Both sides have discussed a possible suspension of attacks against energy infrastructure as part of the discussions over Ukraine. The raw materials needed for the ongoing technological revolution and computing are at stake. This includes copper, which is used in almost all forms of circuitry. It also includes lithium batteries, rare earths, and a variety of other minerals. In June, the European Commission joined the US State Department-coordinated "Pax Silica", a Washington-led collective of more than two dozen nations that commenced with an agreement between the US and Japan in September and has expanded since to include much of Europe, as ?well as key Pacific allies. According to AlixPartners consultancy, Beijing is still responsible for 70% of rare-earth mining, 85% refining capacity, and 90% of rare-earth metal alloys and magnets. Industry experts say that the latter is a major problem for aerospace manufacturers and chip makers. Foreign diplomats have said the US has struggled to regain the initiative. The battle for resources is therefore of particular importance, even though it can be difficult to monitor due to the limitations in reporting and established facts. It is evident, however, that they have already become a part of this wider conflict. BALOCHISTAN MINERAL MINING IS TARGETED ACLED, a global monitoring NGO that stands for Armed Conflict Location & Event Data, has reported at least 40 different incidents of mining interests being targeted in Balochistan in 2026. Local media are now reporting a wider variety of incidents that occur almost daily, including an ambush of nearly three dozen mining vehicles and ensuing firefight at the end August which left at least thirteen militants dead. Some stories describe suspected militants who were detained, then discovered dead. Others tell of victims of extrajudicial killings suspected to have been committed by private security or government personnel. The question of who is behind the various overlapping Baloch militant groups remains a hotly debated issue. India has denied the allegations. Pakistan accuses India's Research and Analysis Wing (RAW) intelligence agency of coordinating and arming these attacks. This is the poorest region in Pakistan. According to reports, guerrillas are crossing the border into Pakistan from Iran and Afghanistan. It is clear that their opposition to Chinese mining has risen dramatically in recent years. The US condemned the attacks, but did not comment in detail. However, the government of Islamabad had increasingly offered itself as a partner to the Trump administration, as well as a resource. Asim Munir, Pakistan's de facto leader and military chief, visited Trump in the Oval Office on October 20, 2025. He brought a wooden display of minerals with him before signing a memorandum committing $500 million. Mining currently accounts for less than 1% in Pakistan's GDP. However, the government says that it has up to $6 trillion worth of undeveloped reserves. The Reko Dik copper and gold mine is one of the largest projects in Pakistan. It's unusually owned by a Canadian company Barrick, not a Chinese conglomerate. The convoy of vehicles ambushed was returning from a mine that is due to start production in 2029. Other Resource Flashpoints Central Asia is also increasingly in the crosshairs for global resource competition. Kazakhstan was the first country in the region to join the US-run Pax Silica, but joined the China-run World Artificial Intelligence Cooperation Organisation just three weeks later. The US State Department immediately warned that joining the Pax 'Silica' collective would be incompatible with joining Chinese rival entities. Washington will continue to seek new deals for resources with the Kazakhstani government. The Kazakhstani government has some of the largest uranium stockpiles in the world, as well as copper, beryllium tantalum lead and zinc. Last November, the US hosted five of the major Central Asian countries at a crucial mineral summit. They also struck deals with Uzbekistan et Tajikistan. South Korea held its own mineral summit with Central Asian governments this month. Japanese media reported last week that Tokyo will launch its own strategy with a similar goal next year. Japan has also been at the forefront in what is now "often" described as "urban mine mining". Four Japanese companies announced in April that they will use robots to recover the neodymium magnetic materials critical for computer hard drives. Some firms are pursuing remote undersea mining projects in order to access resources that were previously out of reach. Trump's administration is also pursuing a variety of commercial and diplomatic initiatives in Latin America. They are keen to counter the dominance of Chinese firms in the so-called "Lithium Triangle", which includes Chile, Argentina, and Bolivia. However, Chinese trade in South America has continued to grow sharply this year. This week in the Oval Office, Trump and Xi may have tried to appear like two geopolitical giants dividing up the world. The reality is much messier and the race for resources is just getting started in the new industrial era.
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Oil price jumps send 30-year yields to a two-decade high
The bond markets were under pressure again on Thursday, with US 30-year bonds yields reaching a record high. Rising oil prices sparked concerns over higher inflation and more Federal Reserve rate hikes. After a Houthi rocket attack on Saudi Arabia, oil prices rose about 3%. However, trade was volatile. Prices fell after reports that the US and Iran had discussed reopening of the Strait of Hormuz. The interest-rate-sensitive US 2-year note rose 2.51 basis points to 4.92%. The yield on US benchmark 10-year notes has increased by 8.17 basis points, to 5.196%. This is the highest level since 2007. The 30-year bond rate increased by 7.96 basis points, to 5.4816%. This is the highest level since 2004. Gennadiy goldberg, head US rates strategy at TD Securities, said that the move up in Treasury yields was likely driven by a mix of factors, including rising expectations for Fed hikes, increased growth expectations, high oil prices, fiscal concerns and hyperscaler issuance. Investor positioning in the face of a rapid rise in oil prices is likely to have exacerbated this sharp increase. The yield gap between French 10-year bonds and German 10-year bonds has reached its highest level since Mario Draghi’s "Whatever It Takes" speech in 2012. The move on Thursday follows a sharp drop in yields for benchmark 10-year notes that took place Wednesday, when they posted their biggest daily gain since the tariff crisis of April 2025. That was driven in part by stronger-than-expected US business activity data, which showed prices paid surged to a nearly four-year high this month. Two Fed policymakers stated on Thursday that the US central bank would likely need to increase interest rates once again in order to reduce unacceptably high levels of inflation. Fed funds futures traders now price in 71% odds that the Fed will?hike rates next month. This is up from 53% just before Wednesday's data. Treasury Department auctioned off 7-year Treasury Notes worth $44 billion on Thursday. This follows a weak demand at the $70 billion 5-year sale held Wednesday. Treasury also announced that it had bought back $4.078 Billion in bonds with a maturity of 20 to 30 years as part its ongoing buybacks for market liquidity. During the operation, bonds worth $10.46 billion were sold. The company had previously said that it would purchase up to $6 billion of debt. YIELDS STOCKS PRESSURE The Dow Jones Industrial Average dropped 0.31%, while the S&P500 and Nasdaq Composite remained roughly flat for the day. Tuesday, the Nasdaq reached a new record high. The MSCI World Index fell by 0.29%, while the pan-European STOXX 600 Index was down by 0.55%. Traders worry that higher bond rates could derail the equity rally, making borrowing costs more expensive and causing investors to move from stocks into bonds. Some analysts claim that despite Thursday's weak performance, financial conditions are still supportive of an economy and stock market with a strong foundation. Antonio Del Favero is the head of US rates at Macro Hive. He said that financial conditions will likely remain loose if the S&P500 does not drop by 20% or more, nor do the Nasdaq Composite prices fall even further. When the yield on 10-year Treasury bonds broke above 5%, the MSCI World Index lost half its value. This was shortly before the global financial crises. A similar decline occurred less than 10 years ago, when an increase of nearly 6.8% helped burst 'dotcom bubble. TRADE TENSIONS US President Donald Trump hosted Chinese President Xi Jinping at the White House for a lavish summit on Thursday. Both leaders were keen to show stable ties despite a number of thorny topics such as?AI and trade, Taiwan, and the war against Iran. Analysts expect few if any major developments, but Washington and Beijing could extend their 11-month 'trade truce. Treasury Secretary Scott Bessent announced that the two sides reached an agreement on a two-month initial extension. Trump met Xi personally at Joint Base Andrews, Maryland. The euro dropped 0.04% to $1.1376 on the currency markets, after hitting a 2-month low. The dollar gained 0.38% against the Japanese yen to 158.88. Spot gold dropped 0.3% to $4.274.14 per ounce.
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Hurricane Polo is expected to land on Sunday night and bring heavy rains to Mexico.
The US National Hurricane Center said that on Thursday, Hurricane Polo was crawling northwest off the mainland as it is "extremely strong". Polo, with maximum sustained winds of 155 miles an hour (250 km/h), has been classified as the last Category 4 storm. This is a step down from the previous highest level, Saffir-Simpson, that it previously achieved. The NHC is constantly adjusting the storm's strength and said that it may see some near-term improvement. It also expects the storm to remain as a major hurricane over the next few days. AccuWeather is a private forecaster that predicted Polo would make landfall on the Baja California Peninsula north of Cabo San Lucas, and then lose steam, reaching a Category 2 hurricane. Local authorities had already started to restrict beach access and close the local port. NHC stated that Polo's outer bands of rain are spreading onto the shore and causing heavy rains. It said that tropical-storm-force wind is likely to be blowing along the coast of southwest Mexico. Polo's winds can reach up to 65 km (40 miles) away from its center, and can extend up to 125 km (205 miles). The Mexican states of Michoacan and Colima are expecting additional rainfall of up to 4 inches (or 50.8 mm) with some isolated totals as high as 6 inches. The?NHC warned that "these swells will likely cause dangerous surf, rip-currents, and coastal flooding." AccuWeather Hurricane Expert Nicholas Arman stated that some rain and moisture could be pulled into Texas if the storm stays on its expected path. He said: "This is textbook El Nino impact where the strong tropical development of the Pacific?ultimately pushes moist into the southwest US." The amount of rain and moisture that reaches Texas is dependent on how well the storm can cross the Sierra Madre Mountains, a large mountain range system which runs from northwest to southeast through western and northwestern Mexico, as well as along the Gulf of California. Arman said that the Sierra Madre acts like a "cheese grater" to any system organized in tropical areas, shredding them apart and making it impossible for anything organized to stay together.
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Indian billionaire Ambani's Reliance Industries eyes $1 bln debt fundraise, bankers say
Reliance Industries, owned by Indian billionaire Mukesh Amani, is set to raise the second tranche of its mega-fundraising plan through the sale rupee-denominated bonds just a few weeks after raising shorter-term debt. Oil-to-telecom company plans to raise $1.04 billion through the sale of 10-year bonds with an annual coupon rate of 7.90%. Bankers say that the company will invite investors to bid next week or in the following week. Reliance Industries didn't immediately respond to an email seeking comment. The bankers asked for anonymity because they were not authorized to speak to the media. One of the bankers stated that "ideally, the company would like to finish the borrowing before the central bank's monetary policy announcement on October 7". RelianceIndustries sold five-year paper with an annual coupon of 7.47% two weeks ago. This was the first rupee bond issue by the conglomerate since November 2023 when it raised 200 billion in the largest debt sale of local currency at that time. The bankers stated that large?private sector banks?would also likely act as arrangers of the new deal, and would be partially?subscribing? to these bonds. The bankers said that the relatively?benign yields on local bonds have made this funding cheaper than a?US debt because Treasury yields?have seen a massive spike. The company has 540 billion rupees in outstanding bonds.
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China's fuel stocks have fallen to their lowest levels in over a decade, causing concern over the return of export restrictions
According to GL Consulting, China's gasoline inventories and diesel stocks have?fallen?to their lowest levels for more than a decade due to a surge in exports and a seasonal recovery of domestic demand. Rystad Energy reports that low stock levels have raised Beijing's concerns, which could lead to tighter controls on exports in October. GL Consulting expects October exports to drop as refiners prioritize domestic energy security. According to data from GL Consulting, a consultancy that is owned by Mysteel (a leading commodity provider), commercial gasoline inventories are at their lowest levels since 2011. Diesel inventories, meanwhile, have?fallen down to their lowest level since 2015. China does not publish fuel inventory data. GL Consulting, however, has records dating back to 2011. Beijing, the world's largest crude oil importer, has imposed restrictions on fuel exports in mid-March after supply disruptions forced refiners into reducing runs. China began to ease the restrictions by mid-July. Exports returned to prewar levels during August and are expected to continue their momentum into September. Refiners have made windfall profits and increased refinery runs. China has not yet released its October fuel export plans to refiners. Analysts have also reduced their estimates of China's fourth quarter crude imports, as Middle East supply disruptions continue to intensify. They expect the current refinery runs rates?to not be sustainable. Energy Aspects' forecast for China’s fourth-quarter oil imports was lowered to 9.2 million barrels. Rystad Energy's fourth-quarter forecast for refinery throughput has been lowered by 880,000 barrels per day from its previous estimate. Independent?refiners are being forced to reduce their run rates due to high crude prices. State-owned refiners are also in their maintenance season and cannot offset the production deficit," said Ye Lin, vice President at Rystad. "The result is that the sector has little room for manoeuvre." Export restrictions could also lead to lower export margins. However, China needs to protect its domestic supply.
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Erdogan, Erdogan: Equal climate pace is unrealistic due to funding gaps
Turkish President Tayyip Erdoan said that it is unrealistic to expect all countries to achieve the same 'progress on climate policies, while there are still inequalities regarding access to technology and financing. He also added that he expected support for Turkey's COP31 Climate Summit Action Agenda from a majority of nations. The COP31 President of Turkey laid out a plan on Monday to turn existing climate commitments into tangible results and projects. This included raising the electricity share in energy consumption by 2035, and reducing projected increases in municipal garbage by half. Australia has agreed to lead formal negotiations for COP31. Turkey will be responsible for the presidency and action agenda. The summit is being held in Antalya, a southern Turkish province from 9-20 November. At the United Nations Climate Summit in New York on Wednesday, Erdogan stated that Turkey and Australia are continuing their preparations in order to ensure the expectations of every region is included in the agenda. He also said he thought a pre-COP in Fiji and a meeting between leaders in Tuvalu would be valuable in ensuring the voice of Pacific?nations was heard. Erdogan added that he expects a'strong support' from all countries to the COP31 agenda. "The steps that will increase the prosperity of countries must be determined by their own circumstances, resources and priorities for development. "While?inequalities persist in access to technology and financing, it's not realistic to expect that all countries will advance at the same pace," he said. "We cannot?make a transition that is just and lasting unless we create a strong connection between climate goals, development and prosperity."
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Oil drops from highs, bonds are shaky amid trade and peace talks
Investors weighed Middle East tensions, and the prospects for talks between China and the United States as they weighed Asian equity markets. Tokyo's markets opened after a three day holiday. The benchmark 10-year Japanese government bond yield had risen to a 30 year high following a sharp sell-off overnight in the US stock market. The greenback and oil prices both eased off recent highs after the leader of Iran vowed that they would never give up following Donald Trump's warning to "annihilate Iran". Investors were looking for clues on the future of interest rates by examining a series central bank speeches, economic releases and US jobless claims. The market was also focused on a summit between Trump, and Chinese President Xi Jinping in hopes of progressing trade relations. Ray Attrill said in a podcast that "equities are showing signs of creaking" under the pressure of rising bond yields. Attrill is the head of FX Strategy at the National Australia Bank. In a risk-off climate, the US dollar still appears to find support as a safe haven. The MSCI Asia ex-Japan Index dropped 0.94% to 891.19 while Japan's Nikkei rose 1.30% at 65,861.04. The benchmark S&P/ASX 200 fell 0.7% while China's blue chip CSI300 index dropped 1.29%. Xi’s?first visit to the US after nearly three years wasn't expected to bring major breakthroughs. However, Washington and Beijing may extend their 11-month trade truce. Treasury Secretary Scott Bessent announced that they had reached a deal to extend the truce as Trump personally welcomed Xi at Joint Base Andrews, Maryland. The bond yields are at multi-year highs, as traders factor in the possibility of central banks raising interest rates to combat persistent inflation. The yield on Japan's 10-year bond rose by 10.0 basis points, to a level that has not been seen since August 1996. The US 10-year Treasury rate rose 1.1 basis point to 5.125% after overnight reaching its highest level since 2007. Officials at the central bank maintained a hawkish stance as rising oil costs fueled inflationary pressures. Federal Reserve Governor Michael Barr stated on Wednesday that the recent rate increase was part of an effort to recalibrate lending costs, and indicated more increases could be required. The markets are looking forward to other Fed officials' speeches on Thursday. These include New York Fed president John Williams and Cleveland Fed president Beth Hammack. Energy prices were high due to geopolitical tensions. Iranian officials spoke with US envoys during the UN General Assembly. Both sides made little progress in resolving the conflict. Trump re-iterated?threats to escalate the conflict, while Iran's President vowed that he would not yield. Oil prices fell as traders took a pause to assess the supply risks associated with the conflict in Iran. Brent crude dropped 0.79%, to $102,27 per barrel. West Texas Intermediate crude also fell 0.79%, to $91.43 per barrel. The dollar index (which measures the greenback versus a basket currencies) fell 0.05% to 101.08 while the euro rose 0.03% to $1.1383. The Japanese yen rose 0.24%, to 157.91 dollars. Sterling also gained 0.02% at $1.3239. The US Labor Department will report on the economy that initial claims for unemployment benefits likely increased to 201,000 during the week ending?September 19. Meanwhile, continuing claims are likely to have increased by 15,000 to 1.745 mln?during the previous week. The US Labor Department is expected to report that initial jobless?claims likely rose to 201,000 in the week ended?September 19, while continuing claims likely increased 15,000 to 1.745 million?in the prior week. Equity futures indicate a decline in markets across Europe and the US. Euro Stoxx futures dropped 0.35% to 6,303.00. DAX futures fell 0.37% at 25,514.00. FTSE Futures declined 0.34% at 10,740.00. US S&P E-minis dropped 0.23% to $7754.25.
Climate-resilient agriculture gains momentum as Europe bakes
Sam Squier’s 200-acre farm in South?east England, amidst scorched brown fields, stands out as an oasis of lush greenery.
Squier’s Aberdeen Angus herd feeds on dense 'pasture' maintained by plantings that have retained water and improved the soil quality.
Squier said, "This year's a great example of what you can achieve in a year without rain."
He said, "Our vision was improving the soil structure and building resilience within our business to mitigate against both prolonged hot and dry weather periods and prolonged wet weather periods."
His cattle, which are genetically modified to produce tender Japanese Wagyu beef, graze a mixture of grasses and deep-rooted herbs, also known as herb leys.
The method was inspired by ancient farming practices. It reflects the decades-long effort to introduce climate resilient farming, as governments and regulators around the world sought to reduce supply chain vulnerability.
The extreme weather this year has heightened the urgency of the debate about whether climate change is changing the economics.
According to interviews conducted for this article with over 25 people involved in the issue, banks and insurance companies, water companies, governments, and major food groups like McDonald's, are all funding a change in farming practices.
Financial Losses from Extreme Weather
Meteorologists expect to declare Britain’s summer officially ending on August 31 as the hottest ever. Europe has experienced extreme heating this year with five heatwaves, and rainfall far below average.
Nearly three quarters of England are officially in drought after its hottest June on record and the driest month of July.
Farmers in the UK have warned that the UK's crop of cereals will be the worst ever since records began. Fruit and vegetable producers have also said they expect a reduction in production. This is echoed by warnings across Europe.
According to the Energy and Climate Intelligence Unit, the losses to farmers in Europe and Britain due to failed crops during the heatwave in June could be up to EUR2.3bn ($2.7bn). The increased costs of energy and fertilizer due to the Middle East war have already had a knock-on effect on inflation.
NUTRIENT-ENHANCING & ENERGY RICH
The herbal leys on some Squier's farms, near Chelmsford are still standing over knee-high even after two months of no rain and without irrigation.
The herbs and grasses are rich in energy, they help control parasites, reduce medication requirements, and the legumes fix nitrogen into the soil to eliminate the need for artificial fertilizers.
They are concentrated on a small area, where they graze the vegetation. The cows move twice daily. The cows create a layer of protection over the soil and their manure helps to return seed back into the ground. This improves the soil's health and increases water retention. Squier hasn't had to purchase winter feed in eight years.
He believes that the soil now holds 400,000 litres more water per acre compared to before he started regenerative agriculture. Earthworm numbers increased from 80 million in the first six months to 680 millions after the switch.
Big Companies Help Farms Switch Techniques
Squier was able to make the switch thanks to grants from the government. He said that without the support, his farm would be unable to survive.
Other people also have problems with ownership and rental arrangements, financial restrictions and resistance to changes.
As evidence grows that investing in new farming methods is worthwhile, it's becoming more popular to work with companies across different sectors, including banks and insurers, who have an interest in protecting their own interests from extreme weather.
Andrew Voysey of the agriculture consultancy Soil Capital said that farms adopting... regenerative techniques consistently outperform more conventional holdings in terms both of yield and profitability during drought stress.
He cited an organisational study that showed farms adopting regenerative practices were able to reduce drought-related losses in yield by at least 10% around 85%.
In Britain, Lloyds Bank, Affinity water, Severn Trent, and AXA XL have joined forces to create the Food & Nature Fund. Funds are pooled and distributed to farmers for soil health improvement.
Ben Makowiecki is the Agriculture Sustainability Director at Lloyds. He said that water companies could reduce their costs by removing farm chemicals in river systems. They would save PS4 ($5) or PS6 for each pound invested in farms. Insurers can also access data on how regenerative farming can help mitigate flood risks.
He said that "systemic changes" in the industry cannot be achieved by working individually.
Routes to Regen is another scheme, which involves companies such as McCain, McDonald's and UK supermarket Waitrose. It also includes banks like Lloyds, Barclays, and NatWest, and insurers such as Aon and Tokio.
Instead of creating a pooled funds, the aim is to offer farmers a variety of options for support. Options include preferential loan terms, technical assistance, incentives from food companies, peer-to-peer learning, and insurance products.
A spokesperson stated that after launching the initiative last year with only 100 farmers, the goal is to expand to at least 200 this year and to include six additional counties in addition to the original six.
Major Food Groups are Increasingly Involved
Jon Banner, global chief-impact officer at McDonald's said that building a resilient food system was bigger than any single company. The company aims to invest at least $1 billion in supply-chain reliability over the next decade.
McCain Foods is a Canadian frozen potato company that offers a variety of support programmes to its farmers, including financial assistance, guarantees, incentives, and long-term contracts.
Charlie Angelakos, Vice President of Global External Affairs and Sustainability at the company, said that supply concerns were behind its decision to focus on regenerative agriculture. He added: "This is not just a climate-change play for us." We see this as an 'assured supply initiative.'
Some have been able to change their lives because of the support they received from the insurance industry.
Nestle is the largest food and beverage company in the world by market capitalisation. Insurers have offered lower insurance fees against natural disasters or yield declines for regenerative farming practices.
Nestle's Chief Sustainability Officer, Antonia Wanner said: "That's a new tool.
This year, Generali Italia launched a pilot project involving 500 farms. The program links sustainable farming practices with 'higher indemnity limitations for climate-related incidents. Future phases could include lower premiums.
The British farming officials could not say how many farms use regenerative technologies because it means different things to different people.
Andy Gray is also an English farmer who has switched.
He pointed a thermometer at two areas of his farm on one of the hottest days of the summer.
Under a clover cover crop, the soil temperature registered at 32 degrees Celsius. He said that on a nearby bare spot, the temperature reached 51 C (123.8 F), which is a temperature high enough to kill most of the soil biology plants need.
Gray, a farmer in Devon, a county located in the southwest, said, "If I maintain soil moisture for two weeks before the drought begins, that will give me an additional fortnight of growing."
If it stays green, it will continue to produce.
(source: Reuters)