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Spain asks EU to not weaken the 2035 combustion engines ban, as shown in a letter
A letter obtained by revealed that Spain's Pedro Sanchez had urged the European Commission to not weaken the bloc’s ban on 2035 for?new CO2-emitting vehicles, while?Brussels is preparing proposals to possibly rollback the policy. According to a leading?German? EU lawmaker, the Commission is planning to take action next week to reduce the policy. This would ban all combustion engine cars after 2035 and require that cars sold thereafter have zero CO2 emission. Germany and Italy have urged the EU to weaken its 2035 ban. They argue that this will protect automakers who are struggling with the tough competition coming from China. In a letter dated Thursday to the President of the European Commission, Ursula von der Leyen Sanchez stated that weakening this policy would put jobs at risk and lead to factory closures, by undermining Europe’s efforts to transform its car industry into a manufacturing powerhouse for electric vehicles. The letter stated that "any additional relaxation" (of the policy) could lead to a significant delay in modernization investment, due to a temporary drop in demand for electric vehicles. It said: "We reject the idea that combustion vehicles and other technologies, which have not been proven to work, could be sold beyond 2035." Sanchez called for an "eco-steel label" that would reward automakers for using low carbon?materials and for a minimum percentage of EU-made content in automobiles. The Commission will announce its policy Tuesday. Manfred Weber, President of the EPP (the largest group of legislators in the European Parliament), suggested that the Commission might propose lowering the CO2 emission targets for the automakers fleets to 90% by 2035. The EU has a strategy that includes a ban on electric cars. Mercedes-Benz, BMW and other automakers have asked the EU to relax the policy due to slower than expected sales of electric cars. Volvo Cars, among others, say that they have invested heavily in the electric transition and that any reversal of the ban will be a betrayal. (Reporting and editing by Rod Nickel.)
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Stocks fall as AI fears linger; US yields rise
The major stock indexes fell sharply on Friday as investors remained cautious about artificial intelligence bets. Meanwhile, the dollar and U.S. Treasury Yields increased after recent losses. Oracle, a cloud computing company, warned earlier this week of massive spending and poor forecasts. Broadcom, a?chipmaker?, warned late Thursday about margins. The technology sector was down the most of all major S&P sectors, at 2.6%. Broadcom shares fell 12% while Oracle dropped 4.6%, and AI leader Nvidia dropped 2.4%. Investors are optimistic about future U.S. rate cuts after the U.S. Federal Reserve reduced interest rates by 25 basis point on Wednesday. The decision was made 9-3, but policymakers have indicated that they will put any further reductions of interest rates on hold for now. The Federal Reserve has expressed concern about the cooling of the labor market and a high level of inflation. Tony Welch is the chief investment officer of SignatureFD, a financial firm in Atlanta. The U.S. data on jobless claims showed that the number of Americans who filed new applications for unemployment benefit increased last week by the highest amount in almost 4-1/2 years. On Thursday next week, the Bank of England will likely cut interest rates. The European Central Bank will likely keep rates steady. However, traders now speculate that it may hike rates in the year 2026. After strong signals by Governor Kazuo ueda, the Bank of Japan will likely increase rates. The Dow Jones Industrial Average dropped 211.75, or 0.4%, to 48.492.26, while the S&P500?fell 72.72, or 1.5%, to 6.828.25, and?the Nasdaq Composite?fell 378.01, or 1.50%, to 23215.84. MSCI's global index of stocks fell 6.18 points or 0.61% to 1,009.09. The pan-European STOXX 600 fell by 0.53%. Investors weighed the comments of a number of Fed speakers, and an optimistic outlook for the economy. Fed officials who voted to oppose the U.S. Central Bank's rate cut last week expressed concern on Friday that inflation is still too high for lower borrowing costs. The yield of the benchmark 10-year Treasury bill The rate rose by 4.5 basis point to 4.186%, and nearly 5 basis points in a week. It is now on track for its second consecutive weekly increase. German government bond rates rose this week after reaching their highest level since early March. This highlights how investors are pricing in rate hikes in the euro zone, a stark contrast to United States where rates seem set to decline. Germany's 30-year bond yield, which is more sensitive to fiscal concerns over the long term, has risen to a new?14-year-high of 3.498%. This represents a 3.5-basis-point increase. DOLLAR GAINS AND POUND FALLS Slightly On UK Data After falling against major currencies in recent sessions, the U.S. Dollar has risen again, but is still on track for its third consecutive weekly drop amid the prospect that the Fed will cut interest rates next year. Sterling fell after data revealed that the UK economy unexpectedly contracted in the three-month period ending October. The sterling fell 0.28%, to $1.3348. The dollar index (which measures the greenback in relation to a basket of currencies, including the yen, the euro and others) rose by 0.15% at 98.48. COAL LOWERS FROM RECORD HIGH Copper fell more than 3% after reaching a new record earlier in the day, as fears about the AI bubble burst prompted a sell-off of riskier assets. As of 1700 GMT, the benchmark three-month copper price on London Metal Exchange was down as much as 3.5% at $11,451.50. It was also trading lower by 2.8% to $11,537.50. U.S. crude oil fell 16 cents, settling at $57.44 per barrel. Brent crude dropped 16 cents and settled at $61.12. (Reporting and editing by Andrew Heavens, Matthew Lewis and Caroline Valetkevitch. Additional reporting by Elizabeth Howcroft and Chuck Mikolajczak from New York and Paris.
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Oil reports weekly loss due to oversupply
The oil prices fell 4% on Friday as the'supply glut' and a possible Russia-Ukraine deal overshadowed any concerns about an impact of the U.S. seizing a tanker near Venezuela. Brent crude futures closed 16 cents lower at $61.12 per barrel. U.S. West Texas Intermediate oil was also down 16 cents, at $57.44. Both benchmarks have fallen by more than 4% in the last week. The market is still weighed down by the supply of crude oil... On the other hand, oil markets ignore the tensions between the U.S. On Wednesday, Donald Trump announced that the U.S. had seized an oil tanker sanctioned by the U.S. government off Venezuela's coast. Six sources said that the U.S. was preparing to intercept more ships carrying Venezuelan oil after a tanker was seized this week. Analysts and traders have largely dismissed concerns about the impact of the seizure. They point to the ample supply on the market. International Energy Agency (IEA) forecasts released on Thursday showed that the global oil supply would exceed demand next year by 3.84 million barrels a day - an amount equal to nearly 4% of worldwide demand. OPEC data, released on Thursday, showed that 'world oil supply' will closely match demand in 2026. This is contrary to the IEA view. Janiv Shar, an analyst with?Rystad, says that some price-supporting?factors still exist, such as the escalation of tensions between Venezuela and the U.S., and Ukrainian drone attacks on a Russian oil rig in Caspian sea. The Russian seaborne oil exports fell just 0.8% in November compared to October. Data from industry sources, and calculations, showed that the completion of refinery maintenance helped offset the slump in fuel exports via southern routes, such as the Black Sea or Azov Sea. Reporting by Seher DAREEN in London, Yuka OBAYASHI in Tokyo, and Siyi Liu from Singapore. Alex Lawler and Nia Williams edited by Daniel Wallis.
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Colombia launches copper exploration and production round with eight qualified companies
Carlos Ortega, Vice President of?Promotion and Development at the National Mining Agency ANM, said on Friday that eight companies have qualified to participate in Colombia's copper-gold and polymetallic exploration round, which will begin next week. Lina Franco, ANM president, said on Friday that Colombia offers 14 areas for copper exploration and production. Franco said during a Bogota event that the blocks in this round are located in Antioquia and La Guajira. Ortega stated that the Canadian company?Aris Mining has already been qualified. Rio Tinto, on the other hand, is currently securing their qualification. "Several important companies already qualified." Ortega told an audience at an agency event that some companies had provided feedback and we made changes to make the round run smoothly. He said that more than one company can bid in an auction when they express interest in the same parcel. Aris Mining confirmed that it had already qualified. Rio Tinto didn't immediately respond to our request for comment. "This is the selection mechanism where we spent over a year evaluating areas with high potential. He said that companies?are virtually guaranteed to take part, and we've made progress on community issues for them to enter more easily. According to the ANM, only 2.5% of Colombian territory has mining rights, which is equivalent to 2.9 millions hectares. Of this, 98% are small- and medium-scale mines. According to data from the agency, Colombia has 354 copper-potential titles, which cover 0.43% of its national territory. However, only six are currently in operation.
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Silver drops from record high as investors make profits
As profit-taking set in, silver prices dropped nearly 3% after reaching a 'all-time high' earlier in the day. Gold, however, rose to its highest level in seven weeks. Silver spot fell about 3%, to $61.7 an ounce at 01:46 pm. ET (1846 GMT), following a record high at $64.64 earlier. Gold spot rose 0.3%, to $4,293.43 an ounce after reaching its highest level since earlier October 21. U.S. Gold Futures?Settled 0.4% Higher at $4,328.3. The U.S. Dollar remained stable after recent falls. The greenback price of metals is less affordable to foreign buyers with a firmer dollar. Bart Melek is the global head of commodity strategy at TD Securities. He said that there's a little blowing of steam, a slight?uptick of the U.S. Dollar and... if you want to call it that,?profit-taking has put pressure on prices. Silver prices have risen nearly 5% in the last week and 112% this year. This is due to tightening inventory, increased industrial demand, and the inclusion of silver on the U.S. Critical Minerals list. In a recent note, CMZ stated that "the price increase is excessive and calls for caution." Silver's fundamental outlook is positive in the long term due to the forecasted increase in industrial demand. The U.S. Federal Reserve announced this week its third and last quarter-point cut in interest rates this year. However, it warned against further rate cuts until more data is available. Investors have priced in two rate reductions next year and are awaiting the non-farm payrolls data due next week. Gold that does not yield tends to perform well in an environment with low interest rates. Melek stated that "our average annual forecast for gold in the year 2026 is $4.213 per ounce." Sources say that the U.S., after seizing an oil tanker in Venezuela this week, is now preparing to intercept other ships transporting Venezuelan crude, as Washington increases pressure on President Nicolas Maduro. Platinum rose 2.6% to $1,740.05. This is the highest price since September 2011. Palladium rose 0.9% to $1 497.21. Both metals were heading for a weekly increase.
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Sources say that output has been suspended at the Yaroslavl refinery. Ukraine claims to have hit it.
Ukraine's military announced on Friday that it had attacked a major Russian oil refinery located in Yaroslavl to the north-east from Moscow. Industry sources confirmed this and said production at the facility was suspended. Ukraine and Russia are attacking each other's power plants as peace talks fail to bring an end to the nearly four-year war. The Ukrainian General Staff posted on Facebook that "Units from the Ukrainian Defence Forces have attacked the capacity of Slavneft - YANOS oil refining plant?in Russia’s Yaroslavl Region." "Explosions were heard and a large fire was recorded in the vicinity of? ?the target. The 'extent of damage is being assessed." According to industry sources, Ukrainian drones caused damage to a primary processing unit at the fourth-largest refinery in Russia. They said that production had been suspended. Slavneft - Yanos, situated about 250 km (155miles) north-east from Moscow, has a?oil processing?capacity? of 300,000 barrels / day or 15,000,000 metric tons / year. Around a third of the production capacity is accounted for by the damaged CDU-4 unit. The press service of the?company did not respond to a comment request. According to industry sources, the country produced 2.6 millions tons of gasoline last year, 4,000,000 tons of diesel, and 4.7,000,000 tons of fuel oil. Bill Berkrot is responsible for the editing and reporting.
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Dollar up but on course for third consecutive weekly drop
The major stock indexes fell sharply on Friday. Investors were cautious about artificial intelligence bets and the dollar, as well as U.S. Treasury Yields, edged up after recent losses. Oracle, a cloud computing company, warned earlier this week of massive spending and poor forecasts. Broadcom, a chipmaker, warned late on Thursday about margins. Technology fell the most of all major S&P sectors, 2.5%. Broadcom shares fell 10.9% while Oracle dropped 4.6%, and AI leader Nvidia declined 2.1%. Investors are optimistic about future U.S. rate cuts after the U.S. Federal Reserve reduced interest rates by 25 basis point on Wednesday. The decision was made 9-3, but policymakers have indicated that they will put any further reductions on hold for now. The Federal Reserve has expressed concern about the cooling of the labor market and inflation that remains high. Tony Welch is the chief investment officer of SignatureFD, a financial firm in Atlanta. The U.S. data on unemployment claims showed that the number of Americans who filed new applications for unemployment benefit increased last week by the highest amount in almost 4-1/2 years. On Thursday next week, the Bank of England is expected cut rates. Although traders now speculate that the European Central Bank could raise rates in 2026, it is expected to maintain its current rate. After strong signals by Governor Kazuo ueda, the Bank of Japan will likely increase rates. The Dow Jones Industrial Average dropped 227.77, or 0.47 percent, to 48.476.68. The S&P 500 fell 74.28, or 1.08 percent, to 6,826.72, and the Nasdaq Composite fell by 385.86, or 1.53%, to 23207.99. The MSCI index of global stocks fell 6.69 points or 0.66% to 1,008.55. The pan-European STOXX 600 fell by 0.53%. Investors weighed the comments of a number of Fed speakers, and an optimistic outlook for the economy. Fed officials who voted to oppose the U.S. Central Bank's rate cut last week expressed concern on Friday that inflation is still too high for lower borrowing costs. The yield of the benchmark 10-year Treasury bill The rate rose by 4.5 basis point to 4.186%, and nearly 5 basis point on the week. It is on track for its second consecutive weekly increase. German government bond rates rose this week after reaching their highest level in March. This highlights how investors are pricing in rate hikes in the euro zone, in stark contrast to those in the United States where rates seem to be falling. Germany's 30-year bond yield, which is more sensitive to fiscal concerns over the long term, has risen to a new?14-year-high of 3.498%. This represents a 3.5-basis-point increase. DOLLAR GAINS AND POUND FALLS Slightly On UK Data After falling against major currencies in recent sessions, the U.S. Dollar has risen again, but is still on track for its third consecutive weekly drop amid the prospect that the Fed will cut interest rates next year. Sterling eased as data revealed that the UK economy unexpectedly contracted in the three-month period ending October. The sterling fell 0.28%, to $1.3348. The dollar index (which measures the greenback in relation to a basket of currencies, including the yen, the euro and others) rose by 0.15% at 98.48. COAL PLUNGES TO RECORD LOW Copper fell more than 3% after reaching a new record earlier in the day, as fears about the AI bubble burst prompted a selloff of all riskier assets. As of 1700 GMT, the benchmark three-month copper price on London Metal Exchange was down as much as 3.5% at $11,451.50. It was also trading lower by 2.8% to $11,537.50. U.S. crude climbed 0.16%, to $57.69 per barrel. Brent increased to $61.32 a barrel, up by 0.07% for the day. Caroline Valetkevitch reported; Elizabeth Howcroft and Chuck Mikolajczak contributed additional reporting from Paris and New York, respectively; Andrew Heavens and Matthew Lewis edited the story.
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US accuses Rwanda of leading the region to war at UN
The United States accused Rwanda on Friday of fueling war and instability as the Rwanda-backed M23 rebel group's advance in eastern Democratic Republic of Congo threatens U.S. president Donald Trump's attempts to broker peace. U.S. Ambassador Mike Waltz told the U.N. Security Council that "Rwanda leads the region into increased instability and war". Mike Waltz, the U.N. Ambassador, told the U.N. Security Council. "We will use all the tools available to us to bring peace-saboteurs to justice." Burundi has been stationing troops in eastern Congo since years. The gains of the rebels have brought the conflict closer to Burundi. This has heightened fears about a regional spillover. Fighting has already claimed thousands of lives and forced hundreds of thousands to flee their homes. BURUNDI: 'RESTRAINT IS LIMITED' Restraint is not without its limits. If these irresponsible acts continue, it will be "extremely difficult" to avoid an escalation in violence between Burundi and the U.N. Ambassador Zephyrin MANIRATANGA told the Security Council. Rwanda's U.N. Martin Ngoga, Rwanda's ambassador to the U.N., accused Burundi of an attack on Rwandan soil and stated: "Rwanda does not wage war against Burundi or have any intention of doing so." He accused the DRC of violating ceasefire, and said: "Rwanda is fully committed to implementing the Washington peace agreement." Therese Kayikwamba, the Congolese Foreign Minister, called on Rwanda to be held accountable. "We are at a moment of truth. Either the international order will accept being openly defied by Rwanda or this council will take responsibility. "Impunity has been going on far too long," she said to the council. ADVANCE AFTER LEADERS MEETING TRUMP M23 claims it is fighting for ethnic Tutsi in eastern Congo. M23's latest advance in the mineral-rich east of Congo comes just a week after Congolese president Felix Tshisekedi met with President Trump in Washington, where they reaffirmed their commitment towards a?peace agreement? mediated by the United States. "We urge Rwanda to honor its commitments, and to recognize that the government of Democratic Republic of Congo has the right to defend their territory, and the sovereign right to invite Burundian troops onto its land," Waltz said to the 15 members of the council. "We are working with all parties to encourage restraint, and to avoid further escalation. This includes refraining from hostile anti Tutsi rhetoric." Waltz stated that "the United States is deeply concerned and extremely disappointed by the renewed outbreaks of violence in eastern DRC." He said that Rwanda had been in strategic control over M23, and what he called the political wing of the rebel group - the Congo River Alliance or AFC since 2021. Waltz stated that "Kigali is intimately involved in the planning and execution of the war in eastern DRC. It has provided military and political guidance to M23 and AFC forces for years." The?Rwandan Defense Forces have provided material, logistic and training support to M23. They also fought alongside M23 with approximately 5,000-7,000 troops in DRC as of early December. Rwanda has denied backing M23, and blamed Congolese forces and Burundian forces. M23 does not participate in the Washington-mediated talks. M23 has participated in a parallel, separate round of talks hosted by Qatar with the Congolese Government.
US should do more to counter China's actions, No. 2 diplomat says
U.S. Deputy Secretary of State Kurt Campbell said on Tuesday that Washington should do more to counter Chinese actions, including its technique for developing military bases and its pursuit of rareearth minerals in Africa.
Campbell told a hearing of the Senate Foreign Relations Committee that competition with China was the defining. geopolitical obstacle facing modern-day American diplomacy. and said the U.S. Navy and Air Force required to step up their. games in the Indo-Pacific.
We need to do more, and we need to object to Chinese. actions, not just in terms of their forward basing method, but. their desire to go after Africa's rare earths that will be. vital for our commercial and technological abilities,. Campbell stated.
Campbell stated the distinction in shipbuilding between. China and the U.S. was deeply worrying.
We have to do better in this arena, or we will not be. the great marine power that we require to be for the 21st century,. he stated.
Campbell, who has actually long advocated pivoting U.S. power to. the Indo-Pacific, stated the 20-year U.S. engagement in the Middle. East was largely about ground forces and we made all the. appropriate financial investments, we improved, we innovated.
Now is the Navy and the Air Force's time. They have to. step up. They have to invest more. They need to be more. ingenious, he said.
They have to be more brave, and they have actually got to. comprehend that the Indo-Pacific arena needs the most capable. naval and innovative long-range air capabilities that the United. States has actually ever required before, which's where we have to put. our focus.
Uncommon earths are essential for state-of-the-art applications, consisting of. defense equipment, and for U.S. President Joe Biden's efforts to. energize the auto market to combat environment change.
The U.S. is eager to secure sources beyond China, which in. 2022 accounted for more than 70% of world rare-earth production.
Democratic Senator Chris Coons noted that the U.S. did not. have an ambassador in the little African country of Eswatini, one. of the couple of remaining countries that recognizes Taiwan rather. than Beijing diplomatically.
The location that truly the Chinese are taking it to us is in. global companies, Campbell said.
We need to have the ability to object to there. I do not like going to. a nation in which we take a seat with the leader and we do not have. an ambassador there; hasn't been there for a couple years ... I. do think we must put these folks on the field..
(source: Reuters)