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EU Plastics Sector: Closures will accelerate if no action is taken
Plastics Europe, a sector lobby group, warned on Wednesday that Europe's plastics industries will face an increased rate of plant closures and fall further behind its global competitors in recycling if urgent action is not taken. The group said that the European Union must recognize plastics as a strategic industry, given their importance in sectors like defence, auto-making, and agriculture. Plastics Europe stated that it is urgent to take action to reduce crippling energy prices, climate-related taxes, high feedstock costs and the impact of U.S. Tariffs. Rob Ingram is the CEO of INEOS Olefins and Polymers Europe and a member of Plastics Europe's steering board. He said that EU plastics were at a "cliff-edge" and struggled to remain competitive. He said that there was a lot to debate about the best direction to take. He said that the first thing to do is to stop things from getting worse. It said that European production volumes increased by 0.4% in 2024, after a 7.6% record contraction in 2023. However, turnover dropped 13% and Europe's share of the global market fell to 12%. In contrast, the global plastics industry increased by 4.1% between 2024 and 2025, with Asia producing more than half of all plastics, while China produced just over a quarter. China's production is now almost double that of Europe, and the EU's production will be flat by 2024. The plastics industry in Europe must purchase emission allowances to compensate for the global warming gases that are created during production. U.S. producers would have a clear advantage over their EU counterparts in terms of energy and input prices, but would still be subject to 15% import duties if they shipped the other way. Reporting by Philip Blenkinsop Editing Ros Russell
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The Atacama Desert Flower in Chile could be the key to drought-tolerant crops
Scientists in Chile's Atacama desert, the world's driest, are studying a resilient, small flower. It could provide genetic clues that will help farmers adapt to the worsening droughts caused by climate change. Cistanthe longiscapa blooms in the Atacama Desert during rare rain events, creating a colorful mosaic known as the "flowering desert phenomenon". A team from Chile's Andres Bello University has been conducting genetic sequencing tests to discover the traits that enable the fuchsia colored flower to survive extreme temperatures and water scarcity in one of Earth's harshest environments. They want to transfer the drought-tolerant traits to other crops. Ariel Orellana is the director of the Plant Biotechnology Center at the University. "We need plants capable of enduring that drought." The World Resources Institute has ranked Chile as one of the most water-stressed nations in the world. Researchers warn that extreme drought conditions will be present in Chile's fertile Central Valley by 2050, affecting agricultural exports such as wine, fruit and livestock. Orellana said that the pata de guanaco is unique because it can switch between two types of photosynthesis. This makes it a plant model for extreme environments. When the plant is under stress due to drought, high sunlight, or salinity it activates CAM photosynthesis, a method that conserves water. It returns to C3 photosynthesis when conditions improve. Orellana said that "this flexibility makes it an excellent model for studying the genes that control these changes." Cesar Pizarro Gacitua is the head of biodiversity conservation for the Atacama region, CONAF, Chile's forestry agency. He says that more research should be done to unravel the mysteries of the plant. How does it survive in extreme conditions, produce enough food and perform photosynthesis? Pizarro said. Lucinda Ell, Lucinda Gutierrez and Rodrigo Gutierrez. (Editing by Alexander Villegas, Nia Williams and Nia Williams).
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Russia withdraws from the plutonium agreement signed with the United States
The lower house of the Russian parliament approved on Wednesday a withdrawal from a landmark deal with the United States that aims to reduce vast stocks of weapons-grade Plutonium leftover from thousands of Cold War nucleotide warheads. In 2000, the Plutonium Management and Disposition Agreement, or PMDA, was signed by both Russia and the United States. This agreement committed them to dispose of a minimum of 34 tonnes each of weapons-grade Plutonium, which U.S. officials estimated would be enough for up to 17,000 nuclear bombs. It was signed in 2011. A Russian note about the legislation that would withdraw Moscow from the agreement stated that "the United States has taken new anti-Russian measures that fundamentally alter the strategic balance at the time the Agreement was signed and create additional risks to strategic stability." After the Cold War, Moscow and Washington had huge stocks of weapons-grade Plutonium that were expensive to store and could pose a proliferation risk. The PMDA aims to eliminate weapons-grade plutonium through the conversion of it into safer forms, such as MOX fuel or irradiating the plutonium using fast-neutron nuclear reactors. In 2016, Russia suspended the implementation of the agreement citing U.S. sanction and what they deemed as unfriendly action against Russia, NATO expansion and changes in the United States' disposal of plutonium. Russia claimed at the time that Washington had violated the agreement by merely diluting and disposing the plutonium without Russian approval. According to the United Nations, Russia and the United States control 8,000 nuclear weapons, a far cry from the 73,000 nuclear warheads they had in 1986. Federation of American Scientists . (Reporting and editing by Andrew Osborn, Anastasia Teterevleva, Guy Faulconbridge)
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Nestle leaves global alliance to reduce dairy methane emissions
Nestle, a food group, announced on Wednesday that it has withdrawn from the global alliance to reduce methane emissions. The alliance aims at reducing the impact of milk farming on global climate change. In December 2023 the Dairy Methane Action Alliance, a group of companies including Danone, Kraft Heinz, and Starbucks, was formed. Members have committed to measure and report methane emissions in their dairy supply chain and to publish plans for reducing those emissions. Nestle didn't say why it pulled out of the Alliance, but it said that it would work towards reducing greenhouse gases, including methane throughout its supply chain and adhere to its net-zero commitment by 2050. CLIMATE ALLIANCES on the Back Foot This is the latest blow for a corporate coalition that aims to reduce the impact of global climate change. It comes at a time when U.S. president Donald Trump has dismantled a number of climate protection measures. For example, several major banks have left the main group in charge of efforts to reduce carbon emissions. Nestle, a Swiss company, said that it "reviews its memberships with external organizations" on a regular basis. As part of this review, Nestle has decided to discontinue its membership in the Dairy Methane Action Alliance. Nestle's 2024 non-financial report stated that by the end of 2024 it had reduced its methane emission levels by nearly 21% from 2018. According to the U.S. Environmental Protection Agency (EPA), methane is 30 times more powerful than carbon dioxide. This makes it an important focus in efforts to reduce global warming. According to Environmental Defense Fund (EDF), which launched the Methane Alliance, livestock is the main source of nearly 40% of all human-caused emissions of methane. Nestle's Logo was Removed from the Main Page of the EDF Website, but its name is still displayed on other pages. EDF did respond immediately to a comment request. Reporting by Alexander Marrow. Mark Potter (Editing)
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Anglo CEO still sees future in Africa despite shrinking footprint
Anglo American's CEO Duncan Wanblad stated on Wednesday that the company still views Africa as a part of its future because of its vital mineral resources. This is despite recent restructurings and asset sales in Africa. Anglo American is exiting its platinum and coal operations in South Africa where it was founded more than a century earlier. It will sell diamond miner De Beers and shift its focus on copper, an essential metal for the clean energy transformation. Kumba Iron Ore is the only major asset of South Africa. Wanblad, despite these exits, said Anglo intended to use South Africa's vast mineral resources on the continent of Africa. Wanblad, at a Johannesburg mining conference, said: "I think Africa is where the world needs minerals." He said, "Hopefully we will be as large as we were in Africa within a few years." Africa has large deposits of cobalt and lithium, as well as rare earth elements that are used to make solar panels, batteries, and electric vehicles. Anglo American announced last month that it had reached an agreement with Canada's Teck Resources, to create a new copper giant. Wanblad stated that the diamond market is starting to recover from a slump of three years, and Anglo saw "some real strategic interests" from potential De Beers buyers. De Beers attracted at least six investors by June, and Angola's diamond state company Endiama revealed last month that it had made a bid for a minor stake in the company. These are parties who know the industry and know their assets. They love diamonds. Wanblad added, "This is all positive."
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Gold reaches record price of $4,000; stocks boosted by rate outlook
Investors jumped on the news of lower interest rates on Wednesday. They also shrugged off the political turmoil in France and Japan. Meanwhile, a prolonged U.S. shutdown pushed gold to $4,000 an ounce, a record high. Gold prices have risen by more than 50% in the past year, to over $4,000 per ounce. This is due to the prospect of Federal Reserve rate cuts and the demand for safe-haven assets resulting from economic and political concerns. Gold is traditionally seen as a safe haven of value in times of uncertainty. The weaker dollar has also been a factor in this rally. It was driven by central banks, retail traders, and fund managers. Hedge EVERYTHING Chris Weston is the head of research for Pepperstone. Thierry Wizman is a global FX & Rates Strategist at Macquarie Group. He said that gold's rally was the collective "hedge", against the potential failure of Wall Street’s AI-driven technology boom. "A collapse in that optimistic "vision" could trigger an inflationary solution for the world's overhang of sovereign debt, instead of a productivity-based solution." European stocks rose 0.4% as gains in energy and banks helped offset a decline in autos. BMW shares fell 7% after the German luxury automobile maker cut its earnings forecast for 2025. U.S. Stock Futures are up by 0.1-0.25, indicating that New York will see more gains later. In France, caretaker Prime Minister Sebastien Lecornu On Wednesday, the government said that a budget agreement could be reached by the end of the year. This would reduce the likelihood of an early election. His cautiously positive tone helped a modest rise in French bonds. OAT yields fell 4.5 basis points for the day to 3.524%. However, it did not help the euro which was headed for a third consecutive daily loss, trading at around $1.1628, its lowest level in over a month. Nina Stanojevic is a senior investment specialist with St. James's Place. She said, "It's a new prime minister, and the market has been volatile." It raises two areas for uncertainty. First, it is unclear if we will have another snap election in the near future. This would impact French OATs. YEN SLIDES This week, political shifts in Japan have also pushed the yen down. Investors are waiting for the announcement of Sanae Takaichi, who is expected to become prime minister in the near future. The last time it was 152.40 dollars per yen. Investors are concerned about Takaichi’s weekend victory, as her preference for lower interest rates and increased spending may have an impact on the Bank of Japan. The Bank of Japan might not be able to raise rates as much in the future as expected. This has weighed down the yen. The yen has dropped over 3% in the past week. This is on track to be its steepest weekly drop in an entire year. This has sparked fears of Japanese intervention. Hirofumi Suzuki, chief currency strategist of SMBC, stated that if the yen headed towards 160 in one to two weeks "FX interventions by the Japanese Government would be viewed more likely". The New Zealand Dollar fell by nearly 1% following the Central bank The Fed slashed the benchmark rate by fifty basis points, and left the door wide open for more easing. This suggests that policymakers are worried about the fragile state of the economy. The dollar index (which measures the U.S. dollar against six other currencies) hit its highest level since the end August. However, sentiment was still gloomy as the shutdown entered its eight day. The shutdown also prevented the publication of several key economic reports. The Federal Reserve is expected to reduce rates by 45 basis points between now and year's end, according to the markets. Investors dismissed concerns about an excess of supply this year, and oil prices rose on Wednesday. Brent crude futures increased 0.8% to $65.97 per barrel. U.S. West Texas Intermediate Crude increased by 0.9% to reach $62.28. (Dhara Ranasinghe and Ankur Banerjee contributed additional reporting from London and Singapore, respectively; Sam Holmes and Sharon Singleton edited the article).
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Toyota and Sumitomo Metal advance cathode material for solid state batteries
Toyota and Sumitomo Metal Mining announced on Wednesday that they had made progress in the development and production of cathode material for all-solid state batteries for electric vehicles. Solid-state batteries promise improved safety, longer life and faster charging than conventional lithium-ion battery that uses flammable liquids as electrolytes. The cost of manufacturing, the complexity of raw materials and their availability are all factors that have a large impact on mass adoption. Toyota, the largest automaker in terms of sales, plans to introduce EVs using all-solid state batteries by 2027 or 2028. Sumitomo Metal, a Japanese company that specializes in powder synthesis, has developed a cathode with 'high durability'. Their statement stated that they will work to improve the performance, safety, and quality of cathode material, as well as reduce costs. They also added that their goal is to make the first use of solid-state batteries for EVs in the real world. A spokesperson for the company said that Sumitomo Metal intends to begin mass production of its newly developed cathode material as soon as April 2028. The spokesperson stated that "we will prioritise supplying Toyota and then respond flexible to the market demand." Toyota and Idemitsu Kosan are also working together on solid-state batteries. The oil refiner is developing another important material, lithium sulfuride. (Reporting and editing by Edwina G. Gibbs; Yuka Obayashi)
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Madagascar protesters reject President's offer to talk
On Wednesday, youth protesters in Madagascar rejected an invitation to participate in President Andry Raoelina's 'national dialogue' with different groups. They accused his government of repression following weeks of demonstrations on the African island nation. The protests, which began on September 25, are a response to similar "Gen Z' movements" in Kenya and Nepal. They represent the greatest challenge to Rajoelina’s government since its re-election to office in 2023. They give voice to widespread discontent about poverty and corruption at the highest levels. Rajoelina dismissed his cabinet in an attempt to quell unrest last week. He appointed a new premier and announced plans for a nationwide dialogue that will begin on Wednesday afternoon. He stated that spiritual leaders, youth representatives and students would attend the discussions. The government's response to the protests was violent, which did not ease the public's anger. In a statement posted to their verified Facebook page, the protesters stated: "We reject this mockery dialogue." "We reject the President's invitation for talks." We refuse to engage in dialogue with any regime that assaults and humiliates the youth of its country in the street. Students were expected to return to the streets on Wednesday after a 48-hour deadline was given by protesters to Rajoelina on Monday evening to accept their demands, or face a nationwide strike. The protests began over water and electricity shortages. However, the demands now include Rajoelina's resignation, an apology to the country, and dissolution of the senate. According to the United Nations, at least 22 people were killed and 100 injured during the unrest. The government has refused to accept these figures without providing any of their own? Rajoelina, late on Tuesday night, appointed new Ministers of Defence and Public Security and asked them restore public order. He said: "Do not tolerate the incitement of violence," without going into further detail about possible measures. Madagascar's protests come at a time when its economy, which is heavily dependent on exports, is vulnerable. Madagascar is known as the producer of most of the vanilla in the world, but other exports such as nickel, cobalt and textiles are vital for foreign earnings and jobs. According to the World Bank, the country's GDP per capita fell by 45% from 1960 to 2020. (Reporting and writing by Elias Biryabarema, Editing by Ammu Kanampilly and William Maclean; Reporting by Lovasoa Raary)
Gold ETFs are a hot commodity as the metal's prices smash records
Analysts said that massive flows into exchange traded funds that track gold helped to drive a spectacular rally which pushed bullion prices to new highs in the past month.
On Tuesday, spot gold prices reached a new record of $3.990.85 an ounce, while U.S. futures gold for December delivery surpassed the $4,000 per ounce mark. Analysts cited the record rate at which investors were allocating money into the metal via ETFs.
Investors are becoming more cautious about the sky-high stock prices and view gold as a refuge against uncertain geopolitical and economic policies. According to LSEG, gold prices have risen 51% this year. This is the biggest increase since 1979.
Roukaya Ibrahim is a commodities strategist with BCA Research. She calculated that global assets in gold ETFs now account for 2,6% of total assets, a significant increase from the 1.9% recorded a year earlier.
Ibrahim said that the intensity of investor interests is unprecedented. Clients now talk to her for up to 90 minutes on the phone at a given time about market movement.
State Street Investment Management reported that inflows to U.S. exchange-traded funds (ETFs) such as its own SPDR gold shares had reached all-time highs of $35 billion by the end of September. This is a record-breaking amount, surpassing the previous annual record of $29 Billion, set in 2020. According to World Gold Council data, global inflows of gold ETFs have reached $64 billion for the year. This includes $17.3 billion, a new record, in September.
The World Gold Council has calculated that gold ETFs saw outflows of $23 billion over the past four years. Analysts believe that gold's value can be maintained despite economic policy headwinds, and the rising geopolitical tensions. Gold can also cushion any gains made this year, as stocks have soared due to the artificial intelligence boom. Gold is a kind-of 'barbelling,' where it becomes a hedge to any failure by the AI-driven tech bubble to deliver its promises, and policy implications of a collapse, said Thierry Witzman, global FX rates strategist, Macquarie Group.
David Schlesser is the head of VanEck's multi-asset solution. He said that gold, one of financial assets oldest in history, has been rising along with bitcoin.
Schlesser said that both assets are not linked to any government. Schlesser says that "nothing goes up straight and we can expect some tactical pullbacks or volatility" and that, in this case "volatility will be your friend," allowing investors and traders to take advantage of dips. He believes that gold prices will top $5,000 per ounce by 2026, and urges investors not to invest less than 5% of their assets in gold.
Goldman Sachs stated in a Monday note that it anticipates the holdings of Gold ETFs to continue increasing in North America, Europe and beyond as the Federal Reserve continues to lower U.S. rates until 2026. Mike Wilson, Morgan Stanley's chief investment officer, suggested that a 20% gold allocation is a good inflation hedge.
Adrian Ash, BullionVault's head of research, said: "When established names like Morgan Stanley tell investors they don't have enough gold, there's no wonder that inflows into ETFs and vaulted bullion are on the rise." (Reporting and editing by Megan Davies, David Gregorio and Poline Devtt)
(source: Reuters)