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IDB will increase climate finance support to at least $11 billion
Inter-American Development Bank President, said that the bank aims to attract at least $11billion in new climate finance by launching a series initiatives to assist countries with global warming impacts and to attract private funding. Multilateral lenders, such as IDB, are being encouraged to squeeze even more out of what they already have. Ilan Goldfajn, speaking on the sidelines of 4th International Conference on Financing for Development said that the IDB's series of actions would help to attract more private funding - which was a major goal of the conference. He said: "We are not merely announcing new ideas, we're launching the things that private sector has been asking for, such as credible tools, scalable platform, and real investment opportunities with impact and confidence." Investors have been deterred by currency fluctuations for years because it is difficult to predict returns. The plan is to expand the project to at least two new countries in the next three-year period, and to double the amount of money raised. The initiative, called FX Edge, will offer a credit line that kicks in when a currency drops sharply. This will help projects with local currency revenue meet their obligations to pay overseas. The platform will also seek to increase the use of derivatives and other long-term currency hedge instruments, such as those offered by local banks and financial institutes. These instruments are backed up by IDB's rating. The IDB, in collaboration with the World Bank plans to also issue up to 1 billion dollars in Amazonia Bonds. These bonds were launched as a test last year, to help reduce deforestation and support the communities of the largest rainforest on earth. Brazil, Colombia Peru, Bolivia, and Ecuador are expected to embrace the Amazonia framework, which is supported by Amazonia, as they work to protect a region that is more than 6,000,000 square kilometres in size (2.3 million square mile) and contains more than 10% of known plants and animals on Earth. Goldfajn stated that the IDB will also increase the number countries who can access a newly enlarged emergency relief fund of $5 billion called the Contingent Credit Facility for Natural Disasters. Together with other multilateral development institutions, it will expand its Climate Resilient debt clauses. These give countries the choice to suspend their loan payments up to two-years in case of disasters. The IDB is expected to provide $4.2 billion of total coverage by 2026. Goldfajn added that the bank also created the Regional Disaster Risk Transfer Program which allows countries to transfer risks associated with extreme weather events onto insurance and capital markets. IDB Invest's separate Business Resilience Program would, meanwhile introduce new debt clauses in contracts with private companies, to cushion them against climate risks. Goldfajn stated that "each of these are important in their own right, but when taken together they demonstrate how development banks can move the needle through tailoring risk to investors." (Reporting from Simon Jessop in London, Marc Jones in Seville and Matthew Lewis in the editing)
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Vallourec Bags ADNOC Order for Tubular Solutions
French tubular solutions supplier Vallourec has secured a significant order from Abu Dhabi National Oil Company (ADNOC) for the supply of more than 30,000 tons of carbon steel tubulars and associated accessories featuring VAM premium connections.This order is part of the ongoing Long-Term Agreement (LTA) for the supply of Oil Country Tubular Goods (OCTG) between Vallourec and ADNOC.This agreement also involves an integrated suite of services, such as VAM Field Service and value-added digital solutions designed to optimize installation and maintenance practices.These services will ensure that ADNOC’s oil and gas fields operate with maximum efficiency. To meet the project's supply and delivery requirements, production will be carried out across Vallourec’s industrial sites in Brazil, China, and Indonesia.This order fully aligns with ADNOC’s ambitious target of reaching 5 million barrels per day of production by 2027.“This contract reflects Vallourec’s unwavering commitment to supplying ADNOC with premium products and services, built on decades of operational excellence in the Middle East. Thanks to our track record and field-proven efficiencies, we continue to deliver state-of-the-art OCTG solutions and related services to major operators like ADNOC,” said Laurent Dubedout, Senior Vice President OCTG, Services and Accessories.
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Osbit Opens New Offshore Wind Facility in Port of Blyth
Osbit, an offshore wind engineering company operating as part of Venterra Group, has opened a new assembly and service facility at the Port of Blyth in the U.K, bolstering its offshore wind service offering. The development has created 33 skilled jobs for the region and represents a substantial investment in the North East's clean energy economy.The new 3350 square metre facility, located at the Port's Wimbourne Quay, boasts a build and test space four times larger than Osbit's previous site, provides access to multiple heavy lift quays, and can accommodate four times as many skilled workers in the adjoining office space.The expansion has already doubled the number of permanent positions at its assembly facility, enhancing Osbit's capabilities in delivering offshore equipment in line with industry demand.The construction of this new facility was made possible by a grant from the Business Growth Fund, which is funded by the Northeast Combined Authority, Gateshead Metropolitan Borough Council, and Sunderland City Council through the UK Shared Prosperity Fund (UKSPF).Osbit is part of Venterra Group, a UK-based, global provider of offshore wind services dedicated to the mission of 'helping wind power grow'. The new facility will enhance collaboration across Venterra's portfolio of offshore wind companies, with meeting rooms and dedicated client hosting facilities reinforcing Osbit and Venterra's role in supporting the UK supply chain and enabling the clean energy transition.The Port of Blyth has been instrumental in the development of Osbit's expanded facility. The project included the conversion of one of the Port's warehouses at their Bates Clean Energy Terminal into a n engineering workshop for Osbit.The transformation included the addition of new offices and overhead cranes, allowing for enhanced operational capabilities.Now fully operational, the facility has already contributed to the delivery of first-of-kind wind farm installation tools, a floating offshore wind cable testing rig, and multiple offshore access gangways.
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Australia's red-meat industry abandons 2030 carbon neutrality goal
A group representing the Australian livestock industry said Tuesday that it had given up its goal of making the sector, which is a major emitter and planet-warming methane by 2030, carbon neutral. However, reducing emissions will remain a top priority. Meat & Livestock Australia released its long-term strategy on Tuesday, but the carbon neutral pledge was not included. Michael Crowley said that the target was unachievable. He said, "We need to invest more time and money in order to achieve our goal." Last week, Australia's Red Meat Advisory Council removed the 2030 climate neutrality goal from its strategic plan. These decisions are similar to those taken by some companies and governments who have reduced their climate commitments over the past few years. The original 2030 goal of the livestock industry was to reduce emissions, and offset any remaining ones by sequestering carbon in soil or plant material. The industry has been working on innovative solutions to reduce methane emissions, including breeding animals that emit less, adding seaweed as a feed supplement that can inhibit the production of methane in the gut and improving soil carbon-capture techniques. According to Australia's science agency CSIRO this is due to less clearing of land and a smaller herd, not a reduction in the amount of methane per animal. Crowley stated that the research conducted over the past few years will mature into implementation, and the industry can still achieve 80-90% its carbon neutrality target by 2030. He said, "We must drive adoption." He said that the 2030 goal had spurred more than A$100,000,000 ($66,000,000) in sustainability investment and MLA (a livestock research and marketing organization), would continue to drive improvements in efficiency and reduce net emissions for each kilogram of meat produced. According to the MLA, Australia is one of world's largest exporters of meat. It has 30 million cattle as well as more than 70 millions sheep. These animals produce methane during digestion. It breaks down with time, but it is 80 times stronger than carbon dioxide in trapping heat for a period of 20 years.
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Gold prices rise on weaker dollar and tariff uncertainty ahead of deadline
Gold prices rose on Tuesday as a result of a weaker US dollar and increased uncertainty about President Donald Trump's proposed tariffs ahead of the deadline set for July 9. This drove investors to safe-haven assets. As of 0229 GMT spot gold rose 0.4% to $3,315.26 an ounce while U.S. Gold Futures rose 0.6%, reaching $3,326.50. Nicholas Frappell is the global head of institutional market at ABC Refinery. He said that the weaker dollar and the concern about the potential impact on the economy if Trump’s tariff deadline was not extended, are currently supporting gold. The U.S. Dollar Index fell by 0.1%, reaching a three-year low. This makes bullion more accessible to holders of other currencies. Trump expressed frustration on Monday with U.S. - Japan trade negotiations as U.S. Treasury Sec. Scott Bessent warned countries that they could be notified about sharply higher tariffs as a deadline of July 9 approaches despite good faith negotiations. Trump continued to pressure the Federal Reserve to ease monetary policies on Monday. He sent Fed Chair Jerome Powell annotated handwritten notes saying that U.S. interest rates should be somewhere between Japan's rate of 0.5% and Denmark’s rate of 1.75%. Frappell stated, "I believe (Trump's request to lower interest rates), is also having an effect on the market. Although I am a little surprised that the markets are so optimistic about rate reductions." Bessent stated that the administration will consider using the next Fed Board of Governors expected vacancy early in 2026 to nominate a successor for Powell. Investors closely monitor a series U.S. Labour Market Reports in this holiday-shortened Trading Week, culminating with Thursday's Government Payrolls Data, to gain insights into the Fed monetary policy direction. Market participants are currently expecting a rate cut of 67 basis points to begin in September. Silver spot fell by 0.8%, to $35.80 an ounce. Platinum was down by 0.7%, to $1.343.61, and palladium rose 0.9%, to $1.107.25. (Reporting and editing by Harikrishnan Nair, Rashmi aich, and Anmol Choubey from Bengaluru)
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Tiny Tuvalu wants assurances from the US that its citizens will not be barred
Tuvalu, the tiny Pacific nation scientists predict will be submerged in rising seas, has said that it wants written assurances from the United States to ensure that its citizens won't be barred entry. It was apparently included by mistake on a list of countries that face visa bans. Other media reported that Marco Rubio, the U.S. Secretary for State, had signed an internal diplomatic cable in which he indicated the United States was considering expanding its travel restrictions, including to three Pacific Island countries, to 36 countries. The cable stated that nations on the list had 60 days to correct their mistakes. The news caused concern in Tuvalu. Its population of 11,000 people is at risk of rising sea levels. A third of its residents applied for an Australian ballot to obtain a climate migration visa. Tapugao Falefou said that a U.S. government official had told him Tuvalu was included on the list due to "an administrative error and a systemic mistake on the U.S. Department of State's part". Tuvalu's Government said in a Tuesday statement that they had not been notified formally of their inclusion on the list. The United States Embassy in Fiji also assured them it was an "error within the system". The statement by Tuvalu's Ministry of Foreign Affairs, Labour and Trade stated that "the Embassy has verbally assured that there are currently no restrictions on Tuvaluan citizens entering the United States, and the matter is under review with the authorities in Washington." Tuvalu is seeking "a formal written confirmation of that effect" and has continued to engage with the U.S. government to ensure Tuvaluans do not suffer unfairly. The embassy didn't immediately respond to our request for a comment. The official who was not authorized to publicly speak about the visa policy in the United States said that "no decisions had been made and any speculation would be premature". The official said that "Tuvalu’s public statement mischaracterizes, and omits many of the valid concerns United States have with travelers from this country." Vanuatu, Tonga and Vanuatu are the other Pacific Islands mentioned in the cable. Tonga’s government received an official U.S. alert and was working to develop a response. Vanuatu government has not responded to a comment request. (Reporting and editing by Saad sayeed in Sydney, Kirsty needham from Sydney)
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Asian shares are rising, dollar weakens as US bill debate continues; gold is on the rise
The dollar remained near its multi-year lows as Asian shares rose and markets awaited the vote on President Donald Trump's tax and spending bill. On Monday, global shares rose to an intraday high on the back of trade optimism. However, a marathon Senate debate over a bill that would add up to $3.3 trillion in debt to the United States weighed down sentiment. The Nikkei index of Japanese shares fell as much as 1,1%, as the yen rose. Gold and oil both advanced for the second session in a row. The vote on Trump's tax-cutting and spending bill was expected to take place during Tuesday's Asian trading session, but the debate continued over a series of amendments from Republicans and minority Democrats. Trump wants to see the bill pass before the Independence Day holiday on July 4. Investors are also looking forward to Thursday's key U.S. employment data as global trade negotiators rush to reach agreements before Trump's deadlines. Ray Attrill is the head of FX Strategy at National Australia Bank. In a podcast, he said that the payroll data released later in the week would "have a significant impact, I believe, on the sentiment regarding the timing of Fed rate reductions." South Korea's Kospi index, which measures the performance of Asia-Pacific stocks outside Japan, rose 1.8%, leading MSCI's broadest Asia-Pacific share index. The dollar fell 0.3% to 143.62 Japanese yen. The dollar dropped 0.1% to $1.1794 versus the euro single currency. It had earlier fallen as low as $1.1798. U.S. crude fell 0.4% to $64.86 a barrel, weighed down by expectations that OPEC+ would increase its output in August. Gold spot rose 0.5%, to $3319.55 an ounce. The German DAX Futures rose 0.2%, while the Euro Stoxx 50 futures in Europe were up by 0.1%.
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Investors watch US trade talks as copper prices rise on a weaker dollar
The London Metal Exchange and Shanghai Futures Exchange saw copper prices rise on Tuesday, despite the weaker dollar. Meanwhile, uncertainty remained over U.S.-China trade. By 0103 GMT the LME's three-month contract for copper rose 0.15%, to $9,883.5 a metric ton, while the SHFE's most traded copper contract increased 0.1%, to 79840 yuan (11,145.23). The worries about the U.S. deficit have weakened the dollar (which) is supportive of commodities. My focus this week will be the U.S. Trade talks," said an analyst in Beijing from a futures firm. The dollar index fell by 0.35% on Monday to 96.86, putting it on course for a sixth consecutive month of losses and its worst half year since the 1970s. The greenback is less expensive to buyers of other currencies. Last week, U.S. Treasury Sec. Scott Bessent said that the U.S.-China had resolved the issues surrounding shipments of Chinese magnets and rare earth minerals to the U.S. This further modified a May agreement in Geneva. Bessent added that even if countries are negotiating with good faith on July 9, they could still be facing sharply higher tariffs. Any possible extensions would be at the discretion of Trump. LME nickel dropped 0.33% to $16,165 per ton. Zinc eased by 0.31% to $2.743 and lead fell by 0.12% to $2.042. SHFE Nickel fell by 0.65%, to 120,180 Yuan. Zinc fell 0.51%, to 22,320 Yuan. Tin dropped 0.27%, to 267410 Yuan. Lead fell by 0.15%, to 17,120 Yan. Click or to see the latest news in metals, and other related stories. Data/Events (GMT 0600 UK National House Price mm,yy June 0750 France S&P Global Manufacturing Final PMI. June 0800 EU Final HCOB Manufacturing Final PMI. June 0830 UK S&P Global Manufacturing Final PMI. June 0900 EU Flash HICP F, E A, T YY,MM. June 1345 US S&P Global Manufacturing Final PMI. June 1440 US ISM Manufacturing Final PMI.
VinFast's Q1 losses grow on higher spending and increased deliveries
VinFast, a Vietnamese electric vehicle manufacturer, reported a net loss for the sixth consecutive quarter on Monday as it continues to increase spending in order to boost sales.
VinFast has reported a loss of $712.4 millions for the first three months. This is less than the $1.3billion loss from the previous quarter, but 15% higher than one year ago. According to LSEG, the average analyst forecast was a loss of $616.3 millions.
The revenue jumped by 150%, to $656.50 million between January and March. This compares with the analysts' estimated average of $520.50 million.
The quarter saw a nearly 300% increase in deliveries, reaching 36,330 cars, mostly due to sales in Vietnam, the biggest market.
VinFast, backed by Vietnam's biggest conglomerate Vingroup, continues to face challenges because of weak consumer demand, stiff competitors, and the 25% tariff that the U.S. imposed on imported cars. VinFast had previously identified the U.S. market as a major growth market.
VinFast's gross margin was minus 35.2% for the first quarter of this year, compared to minus 58.7% one year ago.
VinFast Chairman Thuy Le said: "Despite Q1 being typically our slowest quarterly, deliveries in the first quarter 2025 were higher than our total deliveries during the first half of the previous year. This is an encouraging start for 2025 despite the global uncertainty."
The company is intensifying its promotional efforts in the United States, switching to a dealership-based model instead of its expensive showrooms. It has also shifted its focus towards Asia with a new assembly plant set to open in India in July.
The company said that the costs of sales had more than doubled in the first three months compared to the previous year.
VinFast has been losing money every quarter since its IPO in August 2023. Its founder and CEO Pham Nhat Vuong, and Vingroup have provided financial support of around $2 billion as of May.
Third Bridge, a research firm, noted in a report on pre-earnings that "while its VF3 compact SUV is driving volume sales, the company still loses money on each car it sells."
It said that "the bill of materials" was estimated to be higher than Tesla's and BYD's, in part because VinFast lacked scale and paid a premium to its suppliers who were wary about the company.
VinFast's shares rose by 14.04% before the market opened.
In the third quarter, the company announced that it would launch its next-generation platform as well as an electrical architecture for the Limo Green model. The existing EVs will be supported by this platform next year. Reporting by Phuong nguyen from Hanoi, and Akash Sriram from Bengaluru. Shinjini Ganuli and Mark Potter edited the article.
(source: Reuters)