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After the US exit, countries warn that global climate assessments should not be delayed.
After the U.S. government withdrew, the European Union, Britain, and other climate-vulnerable countries raised concerns over the delay in the next global assessment on climate change by the U.N.'s Climate Science Panel. Next week, the Intergovernmental Panel on Climate Change (IPCC), the U.N. organization that brings together scientists from over 200 countries to assess Earth's health, will be meeting in Hangzhou, China to plan its next report. In a Friday joint statement seen by, Wopke Hoopstra, EU climate chief and 17 other countries, including Britain, Germany France, Spain, Marshall Islands, Guatemala and the Marshall Islands, said: "It is vital that all contributions from the working groups to the Seventh Assessment Report be prepared on time." The statement stated that "we owe it both to those who are suffering from the effects of climate change now and to future generations to make decisions regarding the future of our planet based on the best available evidence and knowledge." According to reports on Thursday, the Trump administration has stopped the participation of U.S. Scientists in the IPCC. They will also not be attending its meeting next week in Hangzhou. Officials familiar with these talks say that the countries who made the statement are concerned that the report will not be finished in time for the next Paris Agreement stocktake in 2028. Nearly 200 countries will evaluate their progress in curbing climate changes and agree on tougher measures in order to avoid escalating temperatures. Last month, Donald Trump ordered the U.S. again to withdraw from the Paris Climate Agreement and reversed the Biden administration’s climate policies. Elon Musk, the billionaire, is leading the effort to rid the federal administration of what he considers wasteful spending, and to slash its workforce. He has cut funding for climate related work, and removed employees who worked on climate justice, climate science and clean energy. In a second statement published by the Least Developed Countries on Friday, a group consisting of 45 of the most vulnerable nations in the world, the Least Developed Countries said that there was no excuse for delays. In a press release, they stated that "any backtracking in this process issue would be seen as what it really is: politization of science on the cost of vulnerable countries." "People living in developing countries have nothing to gain by restricting their access to IPCC science." During the COP28 Climate Summit in 2023, nearly 200 countries agreed to transition from fossil fuels. The IPCC's earlier report was the basis for the agreement. It detailed the dramatic changes humans had made to the climate of the Earth and the need to drastically reduce emissions to prevent further disasters. Reporting by Kate Abnett and Valerie Volcovici, editing by Giles Elgood
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Global equity markets mixed due to uncertainty over Trump's moves and geopolitical issues
Wall Street stocks fell but European shares edged up on Friday, amid uncertainty over U.S. president Donald Trump's rapid policies, including tariffs and spending cuts, as well as Germany's upcoming election. Since returning to the White House in late October, Trump has announced tariffs against several U.S. trading partner countries and launched a campaign to cut the federal workforce of 2.3 million people. These moves have caused concern among traders. Joshua Wein, portfolio director at Hennessy Funds, Chapel Hill, North Carolina, said: "The sell-off over the past couple of days was really about the uncertainty regarding the pace of the change in government." We all knew that there would be cuts in spending and layoffs, but this pace has created a level of uncertainty we've never seen before. The data released on Friday revealed that U.S. businesses have fallen to their lowest level in 17 months, showing that consumers and businesses are becoming more concerned about the Trump administration. S&P 500, Dow Jones Industrial Average, and Nasdaq Composite Index all fell due to losses in consumer discretionary, industrial, and energy stocks. All three major indexes are also expected to finish the week lower. This week, European shares were volatile ahead of the German election on Sunday. Europe's Stoxx 600 index rose 0.45% on Wednesday, ending two days of declines. It is now heading for a weekly increase. The Dow fell 0.85% to 43799.85. The S&P 500 dropped 0.57% at 6,082.56. And the Nasdaq Composite was down 0.69% at 19,823.69. MSCI's global index of stocks fell by 0.23%, to 881.69. The index has fallen 0.25% in the past week. Overnight, MSCI's broadest Asia-Pacific share index outside Japan rose 1.45% and reached its highest level since November 8.
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Gold takes a break from profit-taking and targets eighth weekly gain
Gold prices fell on Friday, as investors took profits off the previous session's high. However, they were still set to make an eighth consecutive weekly gain due to strong demand for safe-haven assets amid fears over U.S. president Donald Trump's proposed tariffs. As of 10:07 am, spot gold fell 0.3% to $2.930.85 per ounce. ET (1507 GMT). Bullion is up around 1.7% after reaching a record of $2,954.69 last Thursday. U.S. Gold Futures dropped 0.4% to $2.945.20. Alex Ebkarian is the chief operating officer of Allegiance Gold. He said, "It was just a classic movement with new all-time highs and profit taking... but" gold's fundamentals remain strong. The price of gold has reached two new record highs in the past week, with prices trading above $2,950/oz. Investors' appetite for bullion is on the rise, as uncertainty surrounding global economic growth, and political instability, have highlighted investor appetite. The demand for gold at the moment is primarily driven by western investors and central bankers. Investors in ETFs appear to be jumping aboard the bandwagon," Commerzbank analyst said in a report. Trump announced a new round of tariffs earlier this week, including duties on lumber and wood products. This is in addition to the previously announced plans for duties on imports of cars, semiconductors, and pharmaceuticals. The tariffs are in addition to the 10% additional tariff imposed on Chinese imports, and the 25% tariff imposed on steel and aluminum. Ebkarian stated that the role of gold as a safe haven has not been fully realized, because the money is still sitting on the sidelines. Investors also monitor the U.S. Federal Reserve interest rate trajectory, as Trump's policies have been viewed by many as inflationary. A higher inflation rate could force the Fed to keep interest rates high, reducing the appeal of gold that doesn't yield. Silver spot was down 0.6% to $32.74 per ounce, and palladium dropped 0.9% to $968.78. Both metals are headed for gains this week. Platinum fell 1%, to $969.05. It is expected to decline by a week. (Reporting and editing by Maju Samuel in Bengaluru, Anmol Choubey from Bengaluru)
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Sources say that European military supplier KNDS is considering an IPO in the midst of a boom in the defence sector.
Two people with knowledge of the matter said that KNDS, a military defence system provider, is looking at an IPO as soon as the end this year. This comes as Europe's push to boost its defence sector sparks a rally. Sources, who spoke on condition of anonymity, said that the Franco-German firm has begun early discussions with advisers regarding a possible listing at Frankfurt in 2026 or 2025. They added that the Banks are yet to be named. The French state-owned holding agency (APE), declined to comment. KNDS, as well as its German family shareholders Wegmann-Group, did not immediately respond to requests for comments. The talks take place amid a recovery in the defence sector after U.S. president Donald Trump stated that Europe would have to increase its military resources significantly. After the U.S. urged European leaders to increase their military budgets, Germany's Hensoldt and Europe's largest ammunition manufacturer Rheinmetall led this week's gains. Rheinmetall's value has increased dramatically since the Russian invasion of Ukraine. It is now worth approximately 39 billion euros (40.87 billion dollars), up from 4 billion euros back in February 2022. KNDS formed in 2015 through the merger of German Krauss-Maffei Wegmann, a family-owned company famous for its Leopard tanks, and French state-owned Nexter. According to the website, both the German family and French Government remain joint owners. One person suggested that a complex shareholder structure could result in the company only floating a small portion of its shares. This would allow the company's family and state supporters to retain control stakes. They also warned that the company may decide not to list as a public business. At the time the article was published, it wasn't clear which shareholders would sell their shares in an IPO scenario or what valuation they might be seeking. According to LSEG Datastream on February 20, world defence companies are trading at 25,8 times expected earnings compared to 18 times three year ago. Iveco, Thyssenkrupp and other world defence companies trade at around 8 times the same valuation metric. KNDS is a manufacturer of battle tanks, armoured vehicle, artillery system, weapons station, ammunition, military bridges and battle management systems. It also produces battle management systems and protection and training solutions. According to its website, it generated revenue of 3.3 billion euro ($3.45 billion). KNDS, an investor in German gearbox manufacturer Renk, listed its shares last year at a valuation 2.15 billion euro and is expected to have sales of 1.1bn euros by 2024, according to preliminary results. KNDS increased its stake in Augsburg-based Renk last week to 25,1%. Renk's shares have risen 62% since the company made its debut on the stock exchange a year earlier. KNDS has approximately 9,500 employees worldwide and is incorporated in The Netherlands. According to its website, it supplies armies around the world with production lines located in France and Germany, and has various industrial partnerships. ($1 = 0.9543 euros)
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Savannah resumes lithium prospecting as Portugal overturns injunction
Savannah Resources announced on Friday that it will immediately resume prospecting work at its lithium project located in northern Portugal, after the government assisted it in overturning a precautionary order filed by landowners. Savannah, a London-based company, believes that the Barroso Project's deposit of lithium-bearing spodumene is the largest in Europe. The latest prospecting results indicate a deposit larger than the 28 million metric tonnes of high-grade battery lithium previously estimated. The EU's goal to reduce its dependence on countries like China for strategic raw material could hinge on this project. Savannah was forced to stop prospecting at Barroso in two weeks' time after the court ordered that the government revoke its permission for the company to enter land owned by others. Savannah said that in a press release, the government filed a "reasoned solution" citing a wider public interest and the court ended up overturning an injunction. Savannah's statement stated that the government claimed any delay in the work "would be more expensive and detrimental to public interest". It added that the company expected to compensate for the delays over the rest of the program. Savannah has only one venture, Barroso. It hopes to begin commercial production in 2027. The project will also complete its final environmental licensing and feasibility study in the second half this year. Reporting by Sergio Goncalves, Editing by Aiden Lewis
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Analysts at JPMorgan do not expect a special Aramco distribution this year
JPMorgan stated in a Friday research note that Saudi Aramco will not have a performance-linked payout this year, following a more balanced cash cycle for 2024 after earlier bumper results which supported the special payout. The past 18M (18-months) have delivered high-performance-linked dividends, funded by premium financials for FY22/23. We remind you that this cycle will end with YE24 (2024). We forecast that there will be no special distributions in 2025 following a more evenly balanced cash cycle of 2024," said the note. Aramco has announced that it will report its results for 2024 on March 4 and expects to declare a total of $124.3 billion in dividends, including $43.1 billion of performance-linked dividends. Saudi Arabia, which holds 81.5% directly of Aramco and also receives royalties and taxes, is dependent on Aramco's dividends. The Public Investment Fund, which is the sovereign fund of Saudi Arabia, owns 16% more of Aramco. It also receives dividends from Aramco as PIF invests billions to divert the economy from oil. Last year, the government sold a portion of its long-time cash cow in order to raise $12.35 Billion from Aramco's second share offering following its record debut for 2019.
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Putin claims that Russia may be able to mine its own lithium
On Friday, Russian President Vladimir Putin stated that Russia had the capability to mine its own lithium. "We have yet to mine lithium." How can we progress without it? We can. We could have done this 10 or 15 year ago," Putin said at a conference in Moscow on advanced technologies. Polar Lithium is a joint venture of Russian metals giant Nornickel with state-owned nuclear power firm Rosatom. In June, the company announced that it would accelerate its one lithium production project by three to four years. The project was originally scheduled to be completed by 2030. Polar Lithium is developing the Kolmozerskoye Lithium deposit, which is the largest lithium deposit in Russia and located in the northwest part of the nation. Russia wants to reduce its dependency on lithium imports. Since 2022, after sanctions against Moscow were imposed over Ukraine, supplies of lithium carbonate from Chile and Argentina has dried up. Russia now relies on Bolivia and China for its supply. Polar Lithium's goal is to build a full-scale production facility for lithium-ion battery materials in Russia. (Reporting and writing by Dmitry Antonov; Felix Light Editing, Andrew Osborn).
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Holcim North American business will be renamed Amrize following spin-off
Holcim, a Swiss company, announced on Friday that it has named its North American building material company Amrize, and plans to list the company this year. Holcim plans to sell its North American operations to its shareholders by the first half 2025. This is one of the largest deals on the global construction markets this year. The name was derived from the combination of the words "ambition", "rising" and Chairman Jan Jenisch said it was a significant step in creating an independent company. After the spin-off, Jenisch will become CEO of Amrize. Holcim is listing Amrize at the New York Stock Exchange, under the symbol AMRZ as well as the SIX Swiss Exchange. Holcim stated last year that the North American business could be valued at around $30 billion. In 2023 it had revenues of approximately $11 billion. Jenisch wants its sales to reach $20 billion annually by 2030. This will be achieved primarily through organic growth and acquisitions. (Reporting and editing by Dave Graham.)
Base metals gain from a possible US-China deal and a weaker dollar
Base metals were up in London on Friday as fears of a trade war with China, the world's largest metal consumer, were put to rest after U.S. president Donald Trump stated that a new deal could be reached.
The price of three-month aluminium at the London Metals Exchange (LME) had risen 1.5% to $2,726 per metric tonne by 1716 GMT, after reaching $2,729, its highest level since November 15.
LME copper increased 0.8%, to $9 539 per ton. This week, the metal surpassed its 200-day moving median which supports it now at $9432.
Aluminium has extended its gains for a fifth session in a row, supported by upcoming restrictions on Russian primary aluminum imports into the European Union.
The impact of this ban will likely be minimal. The EU continues to import Russian aluminum, but volumes have dropped, as European buyers have self-sanctioned since the invasion in Ukraine.
This comes at a time when the U.S. is in talks with Russia about a peace agreement to end the conflict in Ukraine. She added that the U.S. had indicated that sanctions could be lifted as part of a deal.
Dollar-priced materials became more appealing to buyers who use other currencies due to the weakening of the U.S. dollar. The yuan grew.
Trump indicated that the concerns over the possibility of a trade war had only been temporarily alleviated. He said he would announce new tariffs within the next month, or even sooner. In addition to the previously announced plans for imposing duties on imported automobiles, semiconductors, and pharmaceuticals, he will also add lumber and forest products.
Manthey stated that tariffs were bearish for industrial metals such as copper, given the slowdown in global growth.
LME zinc jumped 1.3% to $2.912 per ton. Nickel gained 1.6% at $15,640. Tin jumped 2.3% to $33,455, its highest level since October 8. Lead fell 0.3% to $1.992. (Reporting and editing by Shailesh Kumar, Kirsty Donovan, Elaine Hardcastle and Polina Devitt in London)
(source: Reuters)