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Iraqi minister: Iraq is waiting on Turkey's approval before restarting oil flow from Kurdistan.
Iraq's oil minister announced on Monday that it is awaiting Turkey's approval before restarting the oil flow out of the Iraqi Kurdistan Region. Hayan Abdel Ghani, a reporter, said that he hoped to have the Kurdish oil exported in two days. When asked about the timing of Iraq's return to oil exports, he replied that "this issue would be resolved in a week." Kurdistan regional government announced on Sunday that the Iraqi Kurdistan officials have agreed to resume Kurdish crude oil exports, based on volumes available. In March 2023, the pipeline was shut down by Turkey after the International Chamber of Commerce ordered Ankara pay Baghdad damages of $1.5 billion for exports that were not authorised between 2014 and 2018. The administration of U.S. president Donald Trump is putting Americans at risk Pressure Sources have said that Iraq must allow the restart of Kurdish oil exports or else face sanctions along with Iran. Later, an Iraqi official denied the pressure or threat of sanctions. The rapid resumption in exports of oil from Iraq's semiautonomous Kurdistan would help offset the potential drop in Iranian oil exports. Washington has promised to reduce Iranian oil exports to zero, as part of Trump’s "maximum-pressure" campaign against Tehran. Reporting by Muayad Kenney and Ahmed Rasheed; Writing by Clauda Tanian, Editing By Louise Heavens
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After conservatives won the election, euro and German stocks rose.
Euro and German stocks rose on Monday, as investors welcomed the election results in Germany that placed centrist parties on course to form a government. However, optimism was dampened by potential tricky economic policy negotiations. After a steep U.S. stock market sell-off last Friday, European shares edged up while Wall Street Futures also edged upward. Friedrich Merz is set to be the next German chancellor, after his conservative opposition won Sunday's national elections. Merz is expected to be able form a grand coalition with centre-left Social Democrats even though they came in third behind the far right Alternative for Germany. Peter Schaffrik is a global macro strategist with RBC Capital Markets. He said, "In the end it was a result which was very close to the most recent exit polls. It should be an outcome that will benefit the market." The euro reached a monthly high of $1.0528, before falling to $1.0481 in the last trade. Susannah Streeter is the head of money markets at Hargreaves Lansdown. She said that Merz appears to be determined to lift the debt brake which limits annual borrowings to 0.35% GDP. However, this won't happen easily, as he needs a two thirds majority in parliament. In early trading, the DAX index in Germany rose 0.73%. The STOXX 600, a pan-European index, rose by 0.19% despite a decline in tech stocks. As the EU leaders prepare to meet at an extraordinary summit to discuss how to pay for European defense needs and additional support for Ukraine, they begin German coalition talks. This week marks the third anniversary of Russia's invasion of Ukraine. WALL STREET STEADIES S&P 500 and Nasdaq Futures both rose 0.6%. The Nasdaq dropped 2.5% in the past week, its worst three-month period. Losses were led by "Magnificent 7" tech companies. Wall Street suffered a blow on Friday after a survey of services revealed a shocking drop in activity due to concerns over tariffs and rising costs. The pullback in the market has raised the stakes of Nvidia's results for Wednesday. Investors are expecting fourth-quarter sales to be around $38.5 billion, and first-quarter guidance to be around $42.5 billion. On Friday, the Federal Reserve will release its preferred measure of core inflation. It is expected to show that it has slowed down to 2.6% compared to 2.8%. However, tariff concerns could overshadow this result. The survey, conducted on Friday by the American Consumers Association, showed that inflation expectations in the United States for the next five-year period have risen to 3.5%. This is the highest level since 1995. Francesco Pesole is a currency strategist with ING. The dollar index (which tracks the currency against six other currencies) was slightly lower, at 106.48. After a week of declines, the U.S. dollar rose by 0.17% to 149.54 yen after falling last week due to rising expectations of future rate hikes by the Bank of Japan. Gold remained strong on commodity markets at $2,946 per ounce after climbing for eight consecutive weeks. The oil market has shifted in the opposite direction, partly due to speculation that sanctions on Russia could be eased in an eventual peace agreement on Ukraine. This would boost its oil exports. Brent remained flat at $74.37 per barrel and continued to trade near its lowest level since December.
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Subsea 7 and Saipem from Norway will create a European leader in energy services
The two companies announced late Sunday that Italy's Saipem had agreed to merge its onshore and offshore energy service provider Subsea 7 with Subsea 7, in a 100% share deal. Subsea Seven shares rose up to 9% at the opening of trading and gained 5% by 830 GMT on the Oslo stock exchange. Saipem shares opened higher than 5% before reducing gains to 1.4%. They said that the combined group will be called Saipem7 and have an order backlog totaling 43 billion euros ($45billion), revenues of around 20 billion euro, and core earnings exceeding 2 billion euros. Citi analysts wrote in a client note that the combined business would create cost savings, and provide a stronger integrated offering in particular offshore. They added that this merger could increase payouts for Saipem's and Subsea7 shareholders in 2025 or 2026. The transaction will generate benefits of approximately 300 million euros per year, mainly in the form of cost savings. This is due to fleet optimization, unified procurement and sales and marketing operations. In a joint statement, Subsea7 said that shareholders would receive 6.688 Saipem share for every share they own.
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National Grid sells US Renewables Arm to Brookfield for $1.7 billion
National Grid, a British company, announced on Monday that it had reached an agreement to sell its U.S. Onshore Renewables business to Canadian Investment firm Brookfield Asset Management. The deal includes debt and is valued at $1.74 billion. National Grid is refocusing its investments on its energy networks business, and looking for buyers for its renewables division and Grain LNG terminal in Britain. This is part of the divestment plan announced by National Grid last May. Shell, BP, and Equinor are among the energy companies that have begun to reduce their investments in renewables and low carbon businesses due to declining profitability. National Grid anticipates that the deal between Brookfield and its institutional partners, including Brookfield Renewable Partners, will be completed by the end of the first quarter of the fiscal year ending March 31, 2026. National Grid Renewables is based in Minneapolis and develops and operates solar and onshore wind assets, as well as battery storage in the United States. 1.8 gigawatts are currently in operation, and 1.3 gigawatts are under construction. National Grid shares, which operate transmission and distribution networks and Britain's energy system in certain parts of the United States were up by 1% at early trading. The portfolio of Brookfield Renewable Partners in the United States includes hydropower, solar, and storage facilities. This portfolio spans 34 states. $1 = 0.7896 pounds (Reporting and editing by Mrigank, Eileen Soreng, and David Goodall)
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Sources say that Shenhua China has halted spot coal imports due to a rise in port inventories.
China Shenhua Energy, China's biggest coal miner and importer, has stopped buying imported coal on the spot market as port stocks grow. Three traders who are familiar with this matter said that it is a move which will dampen prices of imported coal. According to two analysts and a senior coal trader in Singapore, who spoke under condition of anonymity, the decision of CHN Energy Investment Group, Shenhua’s parent company will impact purchases starting April. According to a coal trader based in China, the decision was also applicable to deliveries made at the end of March. Shenhua didn't immediately respond to an faxed comment request. According to a second China based trader, the move by the state owned company will affect around 1 million tons per quarter of coal and is not applicable to term contracts. Two traders stated that no decision was made as to how long the halt in spot imports will last. The affected volume may be small in comparison to China's record imports of coal of 542.7 millions metric tons by 2024. However, it has sparked market anxiety over whether other companies will follow and whether this import pause might become government policy. The policy was designed to protect Shenhua’s coal sales on the domestic market. However, the coal trader based in Singapore could not remember the last time Shenhua stopped such imports. Analysts with more than 10 years of experience in the sector said that this was the very first time Shenhua has stopped such imports. Shenhua reported in a recent filing that its commercial coal sales fell by 21.6% on an annual basis to 30.2-million tons in January. The company cited warmer temperatures as a factor, and also the accumulation of stocks. Shenhua reduced production in January by 8.5% compared to the previous year, to 24.9 millions tons. The Singapore-based trader stated that "coal is oversupplied domestically as well as globally", adding that this was bad news for Chinese import coal prices. The unseasonably warm weather this winter has had a negative impact on the coal consumption. Normally, heating demand boosts the consumption of coal. The data of consultancy Mysteel revealed that thermal coal inventories in 55 major Chinese port cities were 72.92 millions tons on February 21. This is moving closer to the all-time record of 77.46million tons set in August 2019.
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Amplats suspends operations in South African mine following heavy rains
Anglo American Platinum announced that it had stopped operations at its Tumela Mine in South Africa after flooding was caused by excessive rains. The company, however, maintained its production forecasts for the year. In a recent statement, the world's largest producer of platinum group materials (PGMs) used to reduce vehicle emissions stated that heavy rains over the last week in the north of South Africa had caused widespread floods. Amplats said that the Tumela underground mine, a smaller operation within the Amandelbult Complex, had been the most affected. The rest of the complex including the main Dishaba Mine, the concentrator, and other infrastructure were not affected and operations resumed Monday following a brief pause. A detailed impact assessment and recovery plan to ensure safe production at Tumela mine, which produces about 10% of Amplats' monthly metal-in-concentrate, was under way. Amplats stated that preliminary indications indicate that the metal-in-concentrate production guidance for 2025 of 3 to 3.4 millions PGM ounces will not be affected. Amplats reported on February 17, a 40% drop in its profit for 2024, to 8.4 billion Rand ($458.56 millions), as lower PGM prices continue hurting the company's income. (1 dollar = 18.3184 rands) (Reporting and Editing by Aidan Lewis).
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The rise in iron ore is halted after four days due to increased duties on Chinese steel
Dalian iron-ore futures prices ended a four day winning streak on Sunday as increased levies against Chinese steel dampened prospects for demand. However, decreasing portside stocks in China limited the decline. The May contract for iron ore on China's Dalian Commodity Exchange ended the daytime trading 0.77% lower, at 832.5 Yuan ($114.95). As of 0710 GMT, the benchmark March iron ore traded on Singapore Exchange was 0.18% less at $108.3 per ton. According to a document from the trade ministry, Vietnam will levy a temporary antidumping levy up to 27,83% on certain steel products imported from China. This move follows the announcement by U.S. president Donald Trump of 25% tariffs for all steel imports in early this month. South Korea followed suit, and imposed tariffs provisionally on Chinese steel sheets last week. China's stocks fell on Monday due to concerns about President Donald Trump’s new memorandum, signed last week, which restricts Chinese investment in strategic areas. This is escalating the trade tensions. Mysteel data revealed that the capacity utilisation rate in the blast furnace steelmills surveyed had decreased for a second consecutive week. The daily hot metal production was down 0.21% from last week to 2,28 million at the end of February 20. Iron ore demand is usually gauged by the hot metal production. Hexun Futures, a Chinese consultancy, said that despite the weather in Australia, iron ore exports worldwide have decreased slightly. Port inventories will also be falling, they added. SteelHome's weekly data showed that portside iron ore stocks in China dropped 1.15%, to 145.8 millions metric tons on February 21. Coking coal and coke both fell by 1.99% and 2.9% respectively. The benchmark steel prices on the Shanghai Futures Exchange have fallen. Hot-rolled coils fell 1.24% and stainless steel and wirerod dropped 0.23%. $1 = 7.2422 Chinese Yuan (Reporting and editing by Mrigank Dahniwala, Janane Venkatraman).
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New attempt made by countries to reach $200 billion nature finance agreement
This week, countries will gather in Rome to try again to figure out how to raise $200 billion per year to preserve biodiversity around the world. It's a chance to give global cooperation a boost as the United States pulls back. Donald Trump's moves to cut development funding since his January inauguration have cast a cloud over discussions and put pressure on participants, despite the fact that the world's largest economy wasn’t a signatory of the efforts. Last October, after striking a landmark agreement in 2022 - the Kunming Montreal Global Biodiversity Framework to stop nature losses by 2030 – countries met in Cali, Colombia to discuss how to pay for the deal. Negotiators were unable to reach an agreement on the other parties who should pay, or how the funds should be managed. WWF, a non-profit organization, has stated that the need for action is urgent, as vertebrate wildlife population has decreased 73% since 1970. How to make richer countries pay to help their less wealthy peers is a difficult question to answer, especially when the willingness to offer grants or low interest loans has declined amid a cost of living crisis. Cali's gavel was dropped with only $163 million pledged. This is a far cry away from the $30 billion per year that had been hoped for by the end the decade. Rome is not likely to see major public finance pledges, but observers are looking for more transparency on who pays what and how much. It is possible that the talks in Rome on February 25-27 could collapse. This would hinder Brazil's efforts to integrate nature in efforts to combat climate change, when the country hosts the next round in the Brazilian city Belem. The United States may not be a signatory to the U.N. Convention on Biological Diversity but the recent changes in policy could reduce the willingness of other countries to support policies that promote nature. Oscar Soria is the co-CEO and founder of The Common Initiative a think tank that focuses on global economic policy and environmental issues. He said that countries must rise above political tensions, and that funding for biodiversity has been neglected too long. He said: "This could be an historic moment if they choose to aim high." "The question is if they will fight like gladiators for the future or let this chance slip away." NEW SOURCES OF FUNDING Rich countries, including those in Europe, want middle-income nations such as the Gulf States to pay more. Due to the unwillingness to provide money in the form grants, there is increasing pressure to find other funding sources, such as through the lending of development banks, domestic resources, and the private sector. In parallel, the countries will discuss how they can divert $500 billion per year, which is estimated to be spent on subsidies, and other incentives, that are used to fund projects that harm the environment, into activities that promote nature. The nations must decide how to house any funds raised. A new fund could be created, or countries can use an existing one, like the Global Biodiversity Framework Fund run by the Global Environment Facility. While Europe is content to let the GEF manage any money, other countries such as the Democratic Republic of Congo and Brazil have called for a new system where they would have more control. There are less likely to be businesses at the conference this week, as there will be no side events. Cali Fund is expected to officially launch, although it's unclear whether the first financial commitments are announced. (Editing by Simon Jessop & Susan Fenton).
New Zealand Foreign Minister to Question Chinese Naval Activity in Beijing
New Zealand's foreign minister Winston Peters is scheduled to arrive in Beijing for a 3-day visit on Tuesday. Relations between the two nations are strained following the live firing exercise conducted by Chinese Navy ships in the Tasman Sea.
Officials from New Zealand and Australia said China conducted live-fire drills in international waters between their two countries, with little warning and forcing commercial airline to divert flights. New Zealand Defence Force reported on Monday that the three ships were currently 280 nautical mile (519 km), east of Tasmania and outside Australia's exclusive economy zone.
Christopher Luxon, the New Zealand prime minister, said that on Monday China would raise in Beijing the notice given by China that it was going to conduct a live firing drill.
Luxon said that the flights were compliant with international laws. "The issue is that we would appreciate more notice, especially on a busy route."
The Chinese Foreign Ministry did not respond immediately to a comment request.
Peters' trip to China is part a larger tour that also includes stops in Saudi Arabia and the UAE, Mongolia, and South Korea. Peters will meet with Wang Yi, the Foreign Minister of China, in Beijing.
Peters stated in a press release last week that he will discuss bilateral relations with Chinese officials, as well regional and global issues of interest to the two countries.
"China is New Zealand's most complex and significant relationship, with important cultural, trade and people-to-people connections. Peters stated that the New Zealand government intends to keep a regular, high-level dialogue with China.
Peters also expressed concern that the Cook Islands, a country independent in free association with New Zealand had signed a strategic partnership with China and other agreements without consulting New Zealand satisfactorily.
Jason Young, Director at the New Zealand Contemporary China Research Centre, Victoria University, Wellington, stated that while there would be questions asked about challenging issues, such as the Cook Islands agreement and the activities of the People's Liberation Army Navy in the Tasman Sea, the discussion would also include future high-level trade and visits. (Reporting and editing by Christian Schmollinger; Lucy Craymer)
(source: Reuters)