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Highlights of EU Commission Chief's 'State of the Union' Address
Ursula von der Leyen, President of the European Commission, called on EU member states to create a new partnership in order to tackle climate change and other major challenges that face us all. Von der Leyen addressed a wide range of issues in her 73-minute "state of union" speech to the European Parliament at Strasbourg. She began with the opening lines of Charles Dickens Tales of Two Cities which, she claimed, also described the world of today. "It was a good time, but it was also a bad one". CANADA Von der Leyen stated that the EU is opening the door for Canada to become the first "associate" member of the 27-nation block, a statut which is not set forth in EU Treaties. Canada and the EU united in defense of Ukraine and believed in the democratic ideals and that power did not belong to the "strongest, richest, or loudest". The EU-Canada relationship should be at the highest possible level, focusing on cooperation in the areas of economic security, smart manufacturing, defence industries and the Arctic. Von der Leyen called the daily?EU goods deficit of EUR1 billion "unsustainable", and claimed that a tipping-point had been reached. She said that dialogue with Beijing had to produce results, and it was both parties' interest to find a resolution. "Let's be clear: We will use all of the tools available to us to rebalance your relationship. Words can be good. "Words are good, but actions are better," said she. She said that the EU would create a European Corporation for critical raw materials in order to stockpile and help procure supplies. CLIMATE Von der Leyen stated that the EU would launch a climate insurance alliance to increase insurance coverage for extreme weather events. Only 25% of the catastrophe losses in Europe is covered by private insurance. It means that national budgets are far too often the last-resort insurer. She said that we need to?take action to close this deficit. The European Commission is also presenting a European Heatwave Plan, which includes early warning systems, health preparedness and a water initiative that addresses leakage and improves risk management, as well as addressing the insurance gap. Von der Leyen proposed an upcoming European firefighting aircraft fleet to combat wildfires. Von der Leyen supported calls from leading U.S. artificial-intelligence labs to slow down the development of this technology. As the models get more powerful, these risks are more apparent. The models being developed will enable hacking at a level that we have never imagined. They will be soon in the hands of adversaries that see the world differently than us," von der Leyen said to EU legislators. "CEOs from the most advanced companies tells us it's time to slow down the self-recursive model. To keep up with the pace of innovation. "If the people who are developing the technology?are clear, we should also be," she said. Von der Leyen said that the EU should also step up its work to establish guardrails in conjunction with like-minded partners such as Britain and Canada. SOCIAL MEDIA The European Commission is set to propose Thursday that children under 13 years old are banned from using social media and parents can supervise "mini accounts" with limited features, and restrictions on time until the child turns 15 years old. UKRAINE/SECURITY Von der Leyen pledged that the EU will give its "strongest ever support" to Ukraine during the upcoming winter. She predicted that this would be the most difficult of the war caused by Russia's invasion. She said that the EU would provide aid to Ukraine in terms of humanitarian assistance, and also increase power and heating supplies and strengthen Ukraine's defences. The European Commission chief proposed also a European Security Council which could?bring together the EU and other partners like Britain, Canada and?Norway?and establish an "emergency safety protocol" to allow EU members?to trigger?discussions in response to crises. MIGRATION The European Commission is proposing a system of emergency response to deal with sudden and massive influxes of migrants. "Europe must have the ability to defend its borders at any time. Particularly in scenarios where mass movements are engineered, weaponized and manipulated. "We will propose a European Emergency Response Framework", she said. The framework will only be activated under strict criteria, and it offers a limited time of flexibility to the affected countries.
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Data shows that Asia's diesel refining margins are at a record high of over $87 per barrel.
LSEG data showed that the Asian sulphur diesel refinery margins have reached a record high of slightly over $87 per barrel. The gains were primarily due to concerns about regional supply. According to data, this compares to pre-war levels around $22 per barrel. The last time the margins reached a record was at $85.6 per barrel towards the end of March. Front-month time-spreads hovered at just over $11 per barrel, nearing a five-month-high. In recent months, Asian refiners increased crude shipments and diesel production to take advantage of robust margins. They also shipped more diesel to distant markets like Africa to make up for shortages in the West. Sources and analysts have said that there are growing concerns about the near-term Asian oil supply risk. The market is now watching for another round of production cuts or run reductions as the escalating tensions of the Middle East increase the possibility of crude delivery delays. The Asian diesel situation is becoming more complex. In the past, Asia was better supplied by higher exports of?China and Korea, said Abhisek Kumar, senior oil market analyst with Sparta Commodities in a recent note. "But Asia is no longer immune from the risk premium." Fears about crude availability and Saudi disruption of supply have begun to lift Asian diesel. Since late last week, a few refiners began selling 'October spot cargos. The market is unsure whether the volumes will be comparable to September or August.
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Merz confidante backs tax cuts as German fuel prices hit record
Thorsten Frei is a senior conservative German lawmaker and a close confidante to Chancellor Friedrich Merz. He said that lowering the gasoline sales tax would be a logical step. Merz's?government is trying to reduce the record high prices?at the pump in advance of the state elections at the weekend, whose results could put pressure on the chancellor. The price of E10, the most common gasoline sold in Germany, is at an all-time-high for the past four days. This is due to the increase in international oil prices, which have reached $100 per barrel as a result of the U.S. and Israeli war against Iran. The national average daily price for one litre of E10 jumped to EUR2.30 ($10.05 per?gallon), up from EUR2.286. TAX REDUCTION FOR ENERGY RELIEF Frei told RTL/ntv lowering the energy tax, 'which was done by the government in May and July, could be an option. 'As well as reducing sales tax to 7% rather than 19%. He added that the discussions should be quick and focussed on how to implement measures by October 1st. Merz, the leader of a cabinet meeting on Wednesday, didn't present any specific measures Tuesday, but promised to make proposals "very soon". He rejected a tax on windfall profits, claiming it had no legal basis. Before the state elections on Sunday in Berlin and Mecklenburg/Western Pomerania, the chancellor wants to show that he is able to act on concerns of voters. Last week, the far-right Alternative for 'Germany (AFA) defeated Merz's Christian Democrats in Saxony-Anhalt. A poll conducted by INSA on Wednesday showed that his CDU was at 7% of the vote in Mecklenburg/Western Pomerania. This is almost half the result the party achieved in the 2021 elections. Merz, the head of Merz’s conservative parliamentary party, Frei, confirmed his support for Merz on Wednesday. Frei said, "We must resolve the many problems that we face in Germany."
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Bonds stabilize ahead of Fed decision, stocks rise as oil prices fall
The global stock market rose on Wednesday, as the recent rise in oil and government bond yields paused before a crucial U.S. Federal Reserve rate decision later that day. MSCI's global equity index rose 0.1% after falling in the two previous sessions. A four-day losing streak was broken by an index of Asia-Pacific stocks outside Japan, which rose 0.6%. The STOXX Europe 600 index, which is the pan-European benchmark, opened 0.3% higher. Futures that track the U.S. S&P 500 index also rose, after the benchmark index had closed lower for the second consecutive session on Tuesday. The yield on the benchmark 10-year Treasury bonds hit its highest level in 2007. The yield on a 10-year Treasury bill in the United States was 5%, after it had been lowered earlier in the day. It rose above this threshold on Tuesday, for the first time since 2007, briefly reaching its highest level in 2007. Later on Wednesday, the Federal Reserve will announce their policy decision. This will be followed by a conference with Kevin Warsh. It's a matter of credibility that he hikes now. Michael Nizard is the head of multi-assets and overlay at Edmond de Rothschild Asset Management, Paris. "It is also a matter of guidance and a response function from the Fed." It's difficult to define a Fed reaction function today. U.S. president Donald Trump has stated repeatedly that he prefers lower interest rates. He said last month that the U.S. will stop trading with nations with whom it runs a deficit in trade if the Fed does not reduce rates. The traders have mostly ignored those comments, and now see a rate increase as almost certain. According to CME Group’s FedWatch tool the markets are pricing in a 92.5 percent probability of a rate hike when the Fed makes its announcement. This is up from 61.2 percent a week earlier. The dollar index (which measures the U.S. Dollar against six other currencies) eased by 0.1% to reach 99.6. It had been nearing its two-week peak. The Japanese yen was stable at 155 to the dollar, after a two-session decline. This is ahead of Friday's Bank of Japan policy announcement. Markets expect the rate to reach its highest level in over 31 years. British stocks were up and the pound was flat as a reading on domestic inflation did not change expectations in advance of the Bank of England policy decision?on Thursday. Markets expected?rates?to remain unchanged. Rates are still expected to increase by the end of the year. Sterling could strengthen if the BoE announces that it will be raising interest rates in response to rising inflation and energy costs. The Japanese yen could also weaken if BoJ's messages do not meet market expectations. As fuel supply disruptions due to the Middle East conflict raise concerns about inflation driven by energy, central banks around the world are considering tightening monetary policy. Brent crude futures fell 0.6% to $108 per barrel on Wednesday after gaining 2.9% the previous day. This was due to reports that Saudi Arabia offered additional crude cargoes through Oman, which eased concerns about supply disruptions. Digital assets have continued to fall after a steep selloff during the previous session when the U.S. Senate voted not to advance comprehensive cryptocurrency legislation backed up by Trump. Bitcoin fell 0.6% to $75423 following a 4% loss on Tuesday. Ether dropped 0.8% to 2,388 after a 6.3% decline in the previous session.
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South Korea places critical minerals and energy at the forefront of the inaugural Central Asia Summit
The first South Korean summit between the leaders of Central Asian countries and President Lee Jae Myung took place on Wednesday. Seoul is focusing its efforts to strengthen ties with this resource-rich area by promoting cooperation in the areas of minerals, energy, and supply chains. The summit was attended by the leaders of Kazakhstan, Uzbekistan Turkmenistan Kyrgyzstan Tajikistan. It concluded three days of bilateral discussions that resulted in more than 70 agreements, memorandums and understandings spanning energy, mines, infrastructure, technology, and investment. Lee, speaking at a forum for business after the summit, said that South Korea wanted to extend cooperation beyond resource imports in order to deepen industrial partnership. Lee stated that "we must strengthen our cooperation along the entire minerals value chain - from exploration to refining, high-value materials processing, and final product manufacturing." He said that Seoul would support these efforts by establishing rare metals centers in Central Asia led by South Korea, with the aim of promoting joint research as well as workforce training. The summit marks the beginning of a new phase for Seoul in its engagement with Central Asia. As a resource-poor nation, it seeks to diversify its crude oil, uranium, and other strategic mineral supplies, while increasing opportunities for its companies. The summit established a framework to hold regular bi-annual leaders' meetings, with Kazakhstan hosting the next meeting in Astana 2028. South Korea and Kazakhstan signed agreements this week covering nuclear energy and crude oil, as well as critical minerals. They also upgraded their ties into a comprehensive strategic partnership. The meetings with Uzbekistan (Uzbekistan), Turkmenistan (Turkmenistan), Kyrgyzstan (Kyrgyzstan) and Tajikistan produced agreements on strategic minerals, energy infrastructure, trade and investment, and digital technologies. Chey Tae -won, Chairman of SK Group, highlighted the opportunities for expanding cooperation at the Business?forum. Chey stated that "we will expand critical minerals collaboration beyond simple development, to include the entire supply chain from refining and materials production." Chey also called for stronger cooperation on?renewable energies and nuclear power. South Korea's New Northern Policy, launched in 2017, aims to create new opportunities for South Korean businesses by establishing deeper economic ties.
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After a summer of extreme weather, the EU launches a climate insurance scheme
Ursula von der Leyen, President of the European Commission, said that the European Union will create a "climate-insurance alliance" in order to provide more coverage for extreme weather conditions. This comes as Europe emerges from an intense summer marked by droughts, wildfires, and heatwaves. Climate change has caused Europe to heat up twice as fast as the average global continent. The wildfire season of this year was one of the worst in Europe. Heatwaves caused power outages, reduced productivity, and forced schools to close. According to EU statistics, only one-quarter of climate-related economic losses are insured in the EU. "Far too frequently, national budgets?become?the insurers of?last resort. In a speech before the European Parliament, von der Leyen stated that we must take action to reduce this gap. The EU has a policy framework that is ambitious to reduce greenhouse gas emissions, which cause climate change. However, the EU has not been prepared for the impact of global warming. In February, the EU's independent Climate Advisors stated that Europe underinvested in climate adaptation. They urged actions such as?better planning in order to avoid building homes in flood-prone areas and designing cities to help people stay cool during heatwaves. Von der Leyen stated that "we need to dramatically increase our preparedness." She also promised to make?other suggestions. In October, a "climate resilience strategy" on how to manage climate risks in 100 European territories vulnerable to climate change will be released. Heatwave plans will improve early warning systems, while EU water plans will increase drought risk management. Brussels also asked senior firefighters for proposals on how to better manage wildfires. This included the EU forming its own firefighting squadron.
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EU's von der Leyen supports partnership with Canada in an 'openly hostile' world
The head of the European Commission has called on 'Wednesday' for EU countries to form a new partnership with Canada to combat climate change, China and other major challenges. Ursula von der Leyen, in her annual address to the European Parliament at Strasbourg, outlined the priorities of the 27-nation EU in the coming year. She said that the only solution to this problem was for all member states to work together. "Our path is obvious." "Building an independent Europe with the power to act." With Russia's invasion in Ukraine, the 27-nation group faces war at its borders. The 27-nation bloc faces stiff competition from Donald Trump's United States and an assertive China on trade issues. In addition to the EU's domestic challenges, there are also major obstacles in Europe. These include the growing popularity of an eurosceptic right-wing, as seen in recent regional elections in Germany that have undermined Chancellor Friedrich Merz. According to opinion polls, Marine Le Pen is the front-runner in France's presidential election next year. "Our Union is stronger than ever." Von?der Leyen stated that the state of our Union could also be as fragile as ever. Work with Canada Von der Leyen, who is now serving her second five-year stint at the top of the EU executive, would also stress the importance of maintaining European independence in different sectors, such as energy, raw materials, and clean technologies. Mark Carney, the Canadian Prime Minister, was welcomed warmly by EU legislators as he arrived in Strasbourg to hear von der Leyen speak. Von der Leyen stated, "We would like to bring the relationship with Canada up to the highest possible level." "I would like to open the door to Canada becoming the first associate member in the EU. Carney received a standing ovation after Von?der Lieen approached him and hugged him. CHINA TRADE DEFICIT Von der Leyen then turned to the issue of trade and said that the EU would use all means possible to reduce its "unsustainable trade deficit" with China. She stated that the imbalance had reached a critical point, with a goods trade deficit last year of EUR1 billion ($1.15billion) per day. Let me be clear: We will use every tool at our disposal to restore balance in our relationship. Words can be good. "But deeds were better," she said. FIGHT CLIMATE CCHANGE Von der Leyen said that the bloc would need to continue its ambitious course on mitigating the climate change, but also increase efforts to adapt to it. He drew on the experiences of the past three months in which the continent had been hit by unprecedented wildfires and heat waves.
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Bahrain's Alba produces 1.3 million tonnes of aluminum per year, CEO claims
The CEO of Alba Aluminium Bahrain said that the company produces aluminium at a rate of 1.3 millions metric tons per year, as opposed to 1.6 million tons before the Iran war. Alba, the world's largest aluminium smelter, closed production lines 1, 2 and 3 after the outbreak of war, as the Strait of Hormuz was closed, limiting exports. In late March, an Iranian attack hit the plant. Ali 'Al Baqali, on the sidelines the Fastmarkets Aluminum Conference in Budapest, said that Alba now operates lines?4,?5, and?6 at its smelter. This is equivalent to 1.3 millions?tons of aluminium per year. He called the Iranian attack a "small and minor attack". "We have already fixed the damages." Al Baqali added that Alba was covered by insurance. Al Baqali stated that its overall capacity will return to 1.6 mt when it completes the acquisition of French Aluminium Dunkerque within the next few months. Alba brings in 300-350 trucks of raw material alumina daily to maintain production, according to the CEO. Al Baqali said that the logistic operation was "expensive" but the London Metal Exchange aluminium prices and the premiums for metals were offset. Al Baqali, a spokesperson for Alba, said that Alba exports metal via the Saudi port of Jeddah, located on the Red Sea, and Sohar, Oman. This is in spite of the ongoing hostilities across the Middle East.
Sources say that at least 60 people have been killed by a gold mine collapse in West Kordofan in Sudan.
Three local sources reported that at least 60 people were killed when a gold mine collapsed in Sudan's West Kordofan State?on Sunday. A local rights group claimed some miners may still be alive and called for an urgent rescue effort.
The Kordofan Observatory monitoring team?said Wednesday that over 70 artisanal miner were 'dead or unaccounted for after a series adjacent mining shafts collapsed? at the al-Zara Mine in the Fouja Area, northwest of al-Nuhud.
According to eyewitness reports, the group reported that another survivor was still alive below ground. The group said that no specialist rescue teams were present and the fragile, sandy soil was hindering residents in their attempts to recover bodies and rescue miners using basic tools.
Three local sources, who spoke to the media on Wednesday, blamed the high death rate at the remote site on a lack in safety procedures and rescue equipment.
Sudan is one of Africa's biggest gold producers. However, the majority of this?gold?is produced by dangerous artisanal miners and then smuggled outside the country.
The paramilitary Rapid Support Forces (RSF) who control the state rely heavily on gold mining as a source of income.
(source: Reuters)