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Draft shows EU wants to cap farming subsidies in budget overhaul
Brussels will propose capping the EU subsidy a single farm can receive every year in an effort to redistribute massive farming subsidies to smaller businesses. A draft European Commission proposal, seen by, revealed this. The document will be part of the Commission’s proposal for the next budget of the European Union, which is due to appear on Wednesday. The EU's massive Common Agricultural Policy (CAP), which provides farming subsidies, is worth approximately 387 billion euro ($451 billion) today. This represents a third the entire budget of the EU for 2021-2027. According to the draft, the Commission's proposal would try to redistribute subsidies to smaller farms by capping the amount of income-based support that they can receive at 100,000 euros per annum. The amount of money paid per hectare would be gradually reduced for those who receive the most. The draft stated that, for example, if a farmer receives area-based income assistance above 20,000 Euros per year, their payments will be reduced by 25%. Payments above 50,000 Euros per year will be cut in half, and payments over 75,000 euro by 75%. It is not the first attempt by Brussels to cap subsidies and limit payments to large landowners or agroindustrial companies. In the previous CAP approximately 80% of payments were made to only 20% of beneficiaries. Previous proposals were rejected by EU countries concerned about their agricultural industries. The new budget for the period 2028-2034 must be approved by the EU countries as well as the European Parliament. A spokesperson for the Commission did not respond immediately to a comment request on the draft. It could be changed before publication. The draft would establish EU-wide, overarching green targets, which farmers must achieve to qualify for subsidies. However, it would also oblige countries to set local, additional conditions. The draft stated that "the new CAP will be a simplified and more targeted Union Common Policy, with greater flexibility for farmers, and a move from requirements to incentives." The draft didn't confirm the size of a new CAP. The core of the new CAP would remain direct income support to farmers. This would be "ring-fenced", meaning that it could not be used for anything else. The proposal would combine the CAP's two-pillar structure to one fund, a move that is opposed by influential European farmers' group COPA-COGECA. ($1 = 0,8574 euros) Reporting by Kate Abnett Editing Tomaszjanowski
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US Judge delays the transfer of Argentina's 51% YPF stake in order to allow an appeal
A U.S. Judge on Monday temporarily halted the enforcement of her order requiring Argentina's 51% stake in the oil and gas company YPF as partial satisfaction of a $16.1 Billion court judgment. The U.S. District judge Loretta Preska, while criticizing Argentina's actions and extending the deadline for the completion of the turn-over by three days until July 17, has pushed back Monday's deadline. She stated that the delay was only to allow Argentina to file a complaint with the 2nd U.S. Circuit Court of Appeals of Manhattan. Argentina filed an Emergency appeal On July 10, the court heard a case. Preska refused to extend the stay. She stated that Argentina "continues its delay and circumvention of its obligations" in relation to the $16.1 billion judgement, citing legislation to prevent the YPF turn over. The Manhattan-based Manhattan judge wrote: "The Republic has abused court accommodations and will not receive additional ones." Requests for comment from an attorney and Argentina's representatives were not immediately responded to. The three-day extension is a temporary relief to the cash-strapped nation, which warned that its economy would be unstable if forced to sell the YPF stake. Argentine president Javier Milei is trying to boost foreign currency reserves, rein in inflation and deal with a heavy debt burden. The dispute arose after Argentina decided in 2012 to take the YPF stake away from Spain's Repsol, without making a bid to minority shareholders Petersen Energia Inversora or Eton Park Capital Management. Burford Capital is representing these shareholders. Burford Capital has stated that it expects to receive between 35% and 73% respectively of Petersen and Eton Park’s damages. Burford's U.S. lawyer and Burford did not respond immediately to requests for comments on the Monday order. Preska has ordered Argentina to pay $1.71 billion and $14.39 billion in September 2023 to Petersen. Argentina appeals this judgment. The U.S. Foreign Sovereign immunity Act protects the YPF shares from being sold. In an emergency appeal, Argentina stated that a YPF turn-over would irreparably damage its sovereignty, violate the international law, and expand U.S. court's power in a wrong way. It said that it would also be unfair to give its controlling stake in country's biggest energy company up now because it would probably be irrevocable, even if they won the case. Burford claimed that Argentina's years of evasion, combined with a commercial immunity exception, was the reason for YPF's turnover. (Reporting and editing by William Mallard, Richard Chang, and Jonathan Stempel from New York)
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Russian rouble, stock market gain after Trump's statement on Russia
The Russian rouble recovered its losses against the dollar, and climbed against China's Yuan after U.S. president Donald Trump warned that he would impose a "very serious tariff" on Russia in 50 days if a deal was not reached on settling pacifically. According to LSEG's data based upon over-the counter quotes, as of 1605 GMT the rouble had fallen 0.2% at 78.10 against the dollar, after reaching 78.75 earlier in the day. The rouble has gained 45% against the US dollar since the beginning of the year, according to LSEG data based on over-the-counter quotes. Trump announced on Monday new weapons for Ukraine and threatened to hit Russian export buyers with sanctions. He expressed frustration at Russian President Vladimir Putin over the lack of progress made in ending the conflict in Ukraine. Artyom Nicholasev, an analyst from Invest Era, said that Trump's performance was below expectations. "He gave the Russian leadership 50 days to come up with an offer and extend the negotiations track. Trump is fond of delaying and extending such deadlines. The rouble gained 0.8% against the Chinese Yuan, which is the most commonly traded currency in Russia. It had fallen by more than 1% Friday. According to the Moscow Stock Exchange, after Trump's remarks, Russian stocks rose by 2.7%. (Reporting and editing by Richard Chang; Gleb Bryanski)
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Britain and Czech Republic will work together to develop small nuclear plants
The UK and Czech Republic announced on Monday that they will explore the possibilities for small modular reactors (SMRs). This partnership could lead to Rolls Royce SMR exporting up to six units into the east European country. Last month, Britain pledged 2,5 billion pounds for the construction of SMRs. It hopes that this will help to increase energy security while helping the country achieve its climate targets and create export opportunities. The SMRs are made in factories with small parts that can be transported by barges or trucks. They are assembled faster and cheaper than large nuclear plants. In a statement issued by the UK Department for Energy Security and Net Zero, which also cited his Czech counterpart, UK Prime Minister Kierstarmer stated: "By working together with our Czech colleagues on small modular reactors we are supporting British engineering, strengthening the industrial base and putting the UK into a leading position for exporting the technologies of tomorrow." Rolls Royce won the contract to build Britain's SMRs last month. Great British Energy, Britain's state owned energy company, is expected to sign the contract and select a location for new plants later this year. Last year, Czech electricity producer CEZ announced that it would acquire a stake in Rolls Royce’s SMR business of around 20%. It also planned to install up to three gigawatts in the country. This is equivalent to six units. Each unit can power approximately one million homes. Starmer and Czech Premier Peter Fiala are hosting a roundtable discussion as part of Fiala's London visit, in order to promote closer links for trade and investment between the two nations. (Reporting by Susanna Twidale, Editing by Aidan Lewis).
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Earnings and tariffs are a focus for the market, as well as inflation data.
MSCI's global index of equity prices edged lower on Monday, while U.S. Treasury rates edged higher. The latest U.S. Tariff threats kept investors on their toes as they awaited inflation readings due later this week and the beginning of the earnings season. After Donald Trump threatened to impose a 30 percent tariff on imports of goods from the European Union, Mexico and Canada starting August 1, the euro briefly fell to its lowest level in almost three weeks. The dollar index remained stable. The threat of tariffs caused European shares to fall on Monday. The EU announced that it would suspend countermeasures against U.S. Tariffs until early August, and continue to push for a negotiated solution. However, Germany's Finance Minister called for a firm response if levies were implemented. This week the U.S. earnings period begins, and the banks are leading the way. According to LSEG, S&P profits are expected up 5.8% compared to the previous quarter. Now, it's all about the earnings season. They don't know what to expect. They want to remain optimistic. Robert Pavlik is a senior portfolio manager with Dakota Wealth, Fairfield, Connecticut. He said that earnings seasons are usually better than expected. However, he also noted that trading values were "a little expensive compared to the 5-year average". The money manager said that people are waiting to see what happens next, given the recent announcements of tariffs. At 10:54 am on Wall Street, the Dow Jones Industrial Average dropped 53.36 points or 0.12% to 44,318.15, while the S&P500 fell 6.66 points or 0.11% to 6,253.09. The Nasdaq Composite increased 18.05 points or 0.09% to 20,603.58. The MSCI index of global stocks fell 0.12% or 1.07 points to 921.49, while the pan-European STOXX 600 fell 0.26%. POWELL PRESSURE Trump has increased political pressure to ease interest rates more aggressively, despite the fact that U.S. Federal Chairman Jerome Powell had signalled patience on this issue. Kevin Hassett, the White House's economic adviser, warned Trump over the weekend that renovation costs at the Fed headquarters in Washington could be a reason to fire Powell. Trump said that Powell's resignation would be great. The yield on the benchmark 10-year U.S. notes increased by 1 basis point, to 4.433% from 4.423% at the end of Friday. Meanwhile, the 30-year bond's yield rose by 2.2 basis points, to 4.9791%. The yield on the 2-year bond, which is usually in line with expectations of interest rates for the Federal Reserve fell by 1.8 basis points, to 3.896% from 3.914% at late Friday. Investors are waiting for the U.S. consumer prices data for June due Tuesday. They will also be watching for any upward pressure coming from tariffs. The data on producer prices and import prices, which are due this week, will provide a glimpse of the impact that tariffs may have on supply chain costs. Retail sales figures will also give a good indication of consumer health. The dollar index, which measures greenbacks against a basket including the yen, euro and yen, increased 0.09% at 97.98. The dollar rose 0.07% against the Japanese yen to 147.5. The Mexican peso fell 0.65% against the dollar to 18.767. Mexican President Claudia Sheinbaum is confident that a deal can be reached by the deadline of August. Bitcoin reached the $120,000 mark for the first and last time. It was up by 1.48% to $120,891.36. Oil prices dropped on Monday, after reaching their highest level in the last three weeks. Investors were watching for further U.S. sanction against Russia and tariffs that could affect global supply. U.S. crude dropped 0.64% to $68.01 a barrel. Brent was down to $70.07 a barrel, 0.41% lower on the day. The gold price has stabilized following a three-week high on Monday, as attention was focused on U.S. data and trade negotiations. Silver prices have climbed to their highest level since September 2011, Spot gold dropped 0.41% to $3341.63 per ounce. U.S. Gold Futures increased 0.04% at $3,357.20 per ounce. (Reporting and editing by Christopher Cushing; Sharon Singleton, Ali Williams, and Ali Williams.
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16 people are killed in attacks on Syrian security forces sent out to quell sectarian conflicts
The defence ministry reported that 16 members of Syria's Security Forces were killed in Sweida (a predominantly Druze city), after they were deployed to quell deadly inter-sectarian violence which local media reported resumed on Monday. After months of tensions, Sunday's clashes between Druze tribal fighters and Bedouin militiamen marked the first instance of sectarian violence in Sweida. The defence ministry issued a press release in which it said that "outlawed group", who were not identified, had attacked several of its units before dawn. It claimed that its forces had responded to the attack, and pursued groups who refused to cease hostilities or continued to target security personnel. In a previous statement, the Defence Ministry said that the fighting on Sunday had left 30 dead. This prompted Syria's Security Forces to send units into the city in order to restore calm and ensure safe passage for any civilians who wanted to leave. Sweida24, a local news outlet, reported that violent clashes erupted again on Monday. According to a second source, the Syrian army will try to establish state control in the entire province to stop any further violence. However, this may take several days. The latest bloodshed was a result of sectarian violence in Syria. Minority groups are increasingly afraid since islamist-led rebels ousted President Bashar Al-Assad and installed their own government. Sunni Muslim Arab groups that fought Assad in the war have agreed to dissolve and become part of the Defence Ministry. However, efforts to integrate armed groups from minorities - such as Druze and Kurds – are largely stalled. Israel's policy of not allowing Syria's army to move south of Damascus, and insisting that Sweida along with neighbouring provinces form a demilitarized area has complicated efforts in southern Syria. In a statement published by state media, Interior Minister Anas Khattab stated that "the absence of state institutions, particularly military and security institutions is the major cause of ongoing tensions in Sweida" and its surrounding areas. Witnesses said that the violence on Sunday was a result of a series of kidnappings including Friday's abduction of Druze merchants on the highway connecting Damascus and Sweida. Khalil Ashawi, Maya Gebeily and Nayera Abdallah in Beirut; Tala Ramadan and Aidan Lewis in Dubai contributed to the report.
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US Court of appeal delays the sale of Argentina's 51% YPF share
A U.S. Judge on Monday temporarily halted the enforcement of an order requiring Argentina's 51% stake in oil company YPF as partial satisfaction of a $16.1 Billion court judgment. The U.S. District Court Judge Loretta Preska's decision in Manhattan provides temporary relief for the cash-strapped South American nation, which warned that its economy would be unstable if it was forced to give up YPF's stake. Preska had originally scheduled a turnover for Monday but extended the deadline until July 17 in order to give time to appeal. Argentine president Javier Milei is trying to boost foreign currency reserves, rein in inflation and deal with a heavy debt burden. The dispute arose after Argentina decided in 2012 to take the YPF stake away from Spain's Repsol, without making a bid to minority shareholders Petersen Energia Inversora or Eton Park Capital Management. Burford Capital is representing these shareholders. Burford Capital has stated that it expects to receive between 35% and 73% respectively of Petersen and Eton Park’s damages. Preska has ordered Argentina to pay $1.71 billion and $14.39 billion in September 2023 to Petersen. Argentina is appealing the judgement. Preska, on June 30, ordered that the government turn over its YPF stake in 14 days. Burford said Argentina's years of evasion and a commercial exception justified a turn-over. Argentina said in a filing to the court on Thursday that "the stakes couldn't be higher." It warned that forcing a turn-around would irreparably damage its sovereignty, interfere in foreign relations, violate the international law, and expand wrongly the power of U.S. Courts. The Argentina compared a turn-over to a foreign judge ordering the U.S. Government to ship gold stored at Fort Knox out of the country, because this court misinterpreted U.S. laws. It also claimed that it would be unfair for the country to relinquish its control of the largest energy company in the country, even if it won the case. Reporting by Jonathan Stempel, New York; Editing by William Mallard
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China informs EU of new climate targets coming in autumn
Teresa Ribera, the green chief of the European Commission, said that Chinese officials told the European Union their country would produce a national plan in the fall to combat climate change. China and the EU missed the February deadline for submitting new national climate change goals to the United Nations. These targets set out the amount a country would reduce its greenhouse gas emission by 2035. They will be used to evaluate global progress in avoiding catastrophic levels of warming. Ribera told reporters that both parties were working to achieve their national determined contributions (NDCs) ahead of the U.N. climate summit in November. Teresa Ribera oversees EU climate policy. She said, "They have committed themselves to an NDC which is comprehensive, in that it includes the entire economy, and takes into account all greenhouse gasses." She said that they would be releasing a concrete update in the fall. The Chinese foreign ministry has not responded to an immediate comment on the timeline. In April, President Xi Jinping stated that China would announce their new goal prior to COP30. He did not specify a specific date. Despite the fact that U.S. president Donald Trump pulled his country from global climate talks, and reduced U.S. funding for clean energy, Brazil is hosting COP30. It has tried to convince major economies to set aggressive targets and reaffirm commitments to combat climate change. Most nations still haven't announced their climate plans. This month, the EU proposed a climate target for 2040. The 27 EU member countries will now negotiate with the European Parliament. The EU is yet to confirm the 2035 climate target. (Reporting and writing by Liz Lee and Kate Abnett, Ethan Wang, Kirsty Donovan, Alison Williams).
Libya reserve bank face-off dangers spiralling into broader crisis
A battle to control the Central Bank of Libya (CBL) has actually currently sparked a blockade of oil production and it threatens the worst crisis in years for the major energy exporter, long torn between rival eastern and western factions.
The standoff was set off when western factions moved this month to oust veteran guv Sadiq al-Kabir and replace him with a competing board, leading eastern factions to shut down all oil production.
So tangled is the situation that while Kabir maintains control of the central bank's site, a rival board selected by the presidency council is issuing declarations on the bank's validated Facebook page.
Kabir, who travelled abroad as the crisis unfolded, was quoted in the Financial Times on Friday saying militias are threatening and frightening bank staff and are in some cases snatching their children and family members.
The reserve bank has actually been paralysed by the brinkmanship, leaving it not able to perform transactions for more than a week, threatening basic financial functions, and neither side looks able to pull back, making violence most likely every day.
Any relocate to fix things quietly will be complicated by a landscape fractured into rival governing organizations with rare claims to authenticity, operating with couple of agreed rules and backed by a shifting constellation of armed factions.
Worse still, the crisis comes at a moment when international diplomacy to deal with Libya's underlying political standoff has stalled, with the post of U.N. envoy uninhabited and no indication yet of foreign powers managing to check the competing factions.
The stability of the last 2 years has gone. Stars are now trying to construct new utilize. So the crisis is set to get much even worse, said Jalel Harchaoui of the Royal United Solutions Institute.
POWER BATTLE
Kabir has actually been Libya's main lender given that the 2011 NATO-backed uprising that plunged the country into mayhem, ending up being a significant player amongst the warlords and political leaders constantly jostling for power.
As the state fell apart in between rival factions, the CBL and National Oil Corporation (NOC), the state energy manufacturer, were held off limits, guaranteeing some governmental functions continued.
Libyan law, buttressed by worldwide arrangements, ruled that oil might be offered only by NOC, with income funnelled into the CBL where it was used to fund state wages and federal government bodies across the country.
This principle started to erode in 2022 when Prime Minister Abdulhamid al-Dbeibah set up a brand-new NOC head in an obvious accommodation with eastern factions, leading to looser controls over the oil sector.
Nevertheless, Dbeibah and Kabir fell out over costs and other problems, and the CBL guv was viewed as moving closer to Khalifa Haftar, the military leader who manages eastern Libya.
By moving to change Kabir, Presidency Council head Mohammed al-Menfi, backed by Dbeibah, has actually put control over Libya's vast funds straight into play and neither side can quickly pull back.
My big picture is that this is a political concern rather than an administrative one. But it is incredibly serious. Without consensus, the nation's greatest staying organization could effectively be hollowed out, stated Tim Eaton of Chatham Home.
The announced termination of Kabir likewise appeared to run counter to the 2015 Libyan Political Contract, the basis for the international neighborhood's negotiations with Libyan factions for nearly a decade.
Gaining international approval for a bank guv is essential. Libyan oil revenue accruing to NOC is paid in dollars into its account at the Libyan Foreign Bank in New York before moving to the Tripoli government's account with the CBL.
BLOCKADE
So far, the brand-new board revealed by Menfi appears unable to control CBL functions. At a press conference on Wednesday it appealed to Kabir to surrender codes that would permit it to make transfers.
It has actually advised Libyan banks to pay state incomes from their own reserves, guaranteeing to repay them when it acquires complete control over deals. Kabir responded with a statement on the CBL site informing banks to neglect guidelines from people impersonating board members.
If the battle for control is extended, all state incomes, transfers between banks and letters of credit required for imports will all end up being impossible, freezing up the economy and Libya's international trade.
At 2 banks in eastern Libya, workers said clearing operations to banks in the west had actually stopped, along with processing of foreign remittances. State salary payments had stopped.
On the other hand, the eastern side's oil blockade will gradually starve the CBL of new funds, as well as reducing condensate readily available for power plants, suggesting long electrical energy blackouts might soon return.
This all adds up to a miserable outlook for Libyans and raises the threat that armed factions might resort once again to combating, some four years after a ceasefire ended the last major bout of warfare.
(source: Reuters)