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White House reviews EPA's proposal for biofuel blend obligation
The proposal will impact the oil and biofuels industries as well as major lobbying power. Sources say that the EPA's proposal is expected to cover 2026-2027. Sources: White House is considering a plan to deal with the backlog of requests for refinery exemptions By Stephanie Kelly and Jarrett Renshaw NEW YORK - According to the Office of Management and Budget's website, the White House completed its review of a proposed rule regarding U.S. Biofuel Blending Obligations and has returned it to the Environmental Protection Agency to be further acted upon. Oil and biofuels industries, two major Washington lobbying forces, eagerly awaited the release of this proposal. It will be one of the very first decisions that the Trump administration will make regarding federal biofuel policies. This will provide insight as to whether or not President Donald Trump will support the biofuel industry during his tenure, which at times has been at odds against oil companies. According to U.S. laws, oil refiners are required to blend billions gallons worth of biofuels in the nation's fuel mixture, or purchase tradable credit from those who do. If they can show that the obligations would harm them, small refiners may be able to request exemptions. Previously reported, the EPA will release a proposal covering both 2026-2027. Participants in the industry will focus on proposed mandates to blend biomass-based diesel, because some felt that previous obligations were not high enough. The American Petroleum Institute, a U.S. biofuels coalition, has urged the EPA to propose federal mandates of 5.25 billion gallons for biomass diesel blending in 2026. This would be a significant rise from previous mandates. The coalition, which brought together some oil and biofuels groups in an historically unprecedented move, recommended that the total federal mandate for biofuel blend mandates be 25 billion gallons by 2026. The EPA has set biomass-based fuel mandates at 3.35 billion gallons for 2025. The industry is also waiting for an indication of how the EPA plans to address the outstanding requests by small refineries seeking exemptions from the mandates. Sources have previously stated that the White House is considering a plan to reduce a backlog of requests. This could include approving current applications and asking for input from industry on older ones. There are currently more than 160 requests for exemptions, which could be worth billions of dollars in tradable credit. (Reporting and editing by Margueritachoy, Jarrett Renshaw and Stephanie Kelly)
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The EU's leading legislator on sustainability laws suggests more cuts
The European Union needs to further reduce the number of businesses subject to its corporate sustainability and environmental rules, said the European Parliament Member leading the negotiations on these policies on Thursday. The European Commission announced in February a "simplification package" that would allow European companies to compete more effectively with their foreign competitors by reducing the reporting requirements and obligations for sustainability. According to Swedish center-right legislator Jorgen Warborn who has proposed amendments that would further scale back laws to cover only companies with at least 3,000 employees and a turnover of over 450 millions euros ($521million) he believes these proposals do not go far. The Commission's proposal would exempt all companies with less than 1,000 employees. This is already a significant cut of more than 80% from the approximately 50,000 companies that are currently covered by green reporting regulations. Around 6,000 companies in the EU have more than 1,000 workers. "Europe has fallen behind the U.S.A. and China in global competition for competitiveness. "I'm going into this process with an ambition that is clear: I want to reduce costs for business and go beyond the Commission in terms of simplification," Warborn stated on Thursday. The European Parliament will then negotiate his draft proposal, where other legislators can offer their own amendments. In the next few months, the Parliament will reach an agreement with EU members on the final changes. Warborn is a member of a group of lawmakers from the European People's Party, which leans centre-right. Some right-wingers want to abolish the policies completely, while Socialists and Greens are pledging to keep them. Both the German Chancellor Friedrich Merz and the French President Emmanuel Macron have demanded that the EU abolish the supply chain legislation. Investors and activists have reacted negatively to the move back on ESG regulations. They claim that it undermines corporate accountability, and makes it harder for the bloc to attract investments in order to meet climate goals. Warborn says his changes won't weaken Europe’s sustainability standards but will instead free up resources for companies to invest in innovation. ($1 = 0.8633 euro) (Reporting and editing by Joe Bavier; Kate Abnett)
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US CPC expects ENSO neutral weather conditions in June and August.
The United States Climate Prediction Center announced on Thursday that El Nino-Southern Oscillation neutral conditions will be likely in summer 2025 in the Northern Hemisphere, with an 82% chance of occurring in June-August. ENSO neutral conditions could continue into winter 2025-2026. However, confidence is lower. There's a 48% chance for neutral, and a 41% chance for La Nina. Why it's important La Nina is a part of El Nino-Southern Oscillation, a climatic cycle that affects the water temperatures in central and eastern Pacific Ocean. La Nina causes cooler water temperatures which increases the risk of droughts and floods. This can have an impact on crops. When ENSO neutral, water temperature stays around average, leading to better weather and possibly higher crop yields. CONTEXT The Japanese weather bureau stated on Tuesday that there is a 60% probability of normal weather conditions continuing into autumn. The National Weather Service of the National Oceanic and Atmospheric Administration has forecast above-normal activity for hurricanes in the Atlantic basin during the 2025 season. KEY QUOTES "While ENSO neutrality will have some benefits, the crops will not produce as much as they would under a La Nina setup," Tyler Roys, Senior Forecaster, Lead European at AccuWeather. While the United States has seen a good amount of rainfall in spring, any dry spells that occur in conjunction with high temperatures in July and August could ruin what would otherwise be a great crop year. (Reporting by Anushree Mukherjee in Bengaluru)
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Rate-cuts and geopolitical risk are driving gold to a one-week high.
Gold prices reached a new high on Thursday. The trend was fueled by the simmering Middle East tensions, and cooler U.S. data which fueled fresh bets about Federal Reserve rate reductions. Spot gold rose 0.9% to $3,383.79 per ounce at 0930 ET (1330 GMT), the highest level since June 5. U.S. Gold Futures rose 1.8% to $3404.60. Gold is up for a second day in a row, largely due to increased geopolitical risk. "If gold clears the $3,400 mark again, there are minor hurdles of $3,417 or $3,431 -- but ultimately, a breakout towards new all-time records looks likely," said Peter Grant. Donald Trump, the U.S. president, said that the U.S. is moving personnel from the Middle East as it "could become a dangerous area". Aziz Nasirzadeh, the Iranian defence minister, said that on Wednesday if Iran were to be subjected by strikes they would retaliate against U.S. bases located in the area. In other data, U.S. producer price increases were less than expected for May. The number of Americans who filed new claims for unemployment benefits remained unchanged last week at higher levels as the labour market continued to gradually ease. The traders see 80% of a Fed rate cut in September, and a second cut as early as October. This is compared to the December rate cut that was expected before data. The latest data followed Wednesday's cooler-than-anticipated Consumer Price Index (CPI) report for May. Trump stated on Wednesday that he was willing to extend the deadline of July 8 for concluding trade negotiations with other countries before U.S. higher tariffs go into effect. However, he did not think this would be necessary. Spot silver fell 0.2% to $36.14 an ounce, after reaching its highest level since 2012. Grant stated that silver is poised to reach $40 if it surpasses the current $38 level, thanks to a long-term supply deficit as well as renewed technical strength. Palladium dropped 3.1%, to $1046.50, as platinum remained at its four-year-high. Ashitha Shivprasad in Bengaluru and Sarah Qureshi report.
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Indonesia invites foreign investors to invest in seawall worth $80 billion that will protect the coasts against flooding
The President of Indonesia, Prabowo Subianto, announced on Thursday that foreign investors were invited to invest in Indonesia's plan for a seawall of hundreds of kilometers to prevent flooding along the north coast Java island. The project builds on a plan from 2014 by the government of Jakarta to protect the city against rising sea levels and subsidence which have caused frequent floods along the north Java coastline. Prabowo announced that he will form an agency for the project to build a giant seawall stretching from Banten province to East Java, which could take up to 20 years to finish. Officials have stated that the wall will be approximately 700 km (435 miles). In a speech delivered at a infrastructure event, Prabowo stated that the giant seawall along the north Java coast is one of the most important infrastructure projects. He said that "(sea) water has threatened the lives and livelihoods of our people", citing several towns in central Java. According to Indonesia's Meteorology, Climatology and Geophysical Agency, sea levels on Indonesian coastlines increased by an average of 4,25 millimetres per year from 1992 to 2024. However, the rate accelerated recently due to climate changes. Prabowo stated that he invited countries like China and Japan to invest, but did not elaborate. Experts claim that Jakarta is sinking because of excessive groundwater extraction, which has led the central government's plan to move its capital to the jungles on Borneo Island. (Reporting and editing by Mark Heinrich; Stanley Widianto)
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Source: Palliser, an activist investor, has a near 5% stake at UK's WHSmith.
Sources familiar with the situation told a reporter on Thursday that activist investor Palliser Capital had built a stake of nearly 5% in WHSmith, which sent shares of the British travel retailer higher by over 5%. Sky News reported earlier Thursday that Palliser intended to review WH Smith’s leverage targets and its capital allocation policy in order to boost shareholders' returns. A London-based investment company recently tried to convince Rio Tinto, the mining giant, to ditch its dual-listed structure and opt for a primary listing on the Australian stock exchange. Sky News reported that Palliser could have a stake in WH Smith worth up to 65 million pounds ($88.27 millions). WH Smith has declined to comment. It is a 230-year old brand that operates 1,200 stores at airports and stations in 32 countries. In March, it sold its iconic UK High Street business to Hobbycraft's owner Modela Capital to focus on travel retail. According to LSEG, Los Angeles-based Causeway Capital Management LLC holds a 12.2% share of WH Smith.
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Pirelli investors support 2024 earnings report in spite of Sinochem's opposition
The company reported that Pirelli shareholders approved its earnings report for the past year, despite Sinochem's opposition, which is the largest shareholder. The result of the vote indicates that Sinochem's influence over Pirelli, which was restricted by the Italian Government, does not have an effective control over the firm. Sinochem, who owns 37% of Pirelli, and Camfin (the second largest shareholder) have fought over the issue. They claim that the large Chinese presence at Pirelli is a threat to their ambitions to expand in the United States. Sinochem was the sole shareholder who voted against the approval of 2024's annual report, according to the Pirelli statement. The shareholders meeting approved the payment to investors of 250 million euro as a dividend. This is equivalent to 0.25 euro for each share. Washington has cracked down on Chinese automotive technology by banning software and hardware that are controlled by Chinese companies from being used in U.S. roads. According to a report on Wednesday, the Italian government wants clarification from the United States regarding possible restrictions on Pirelli U.S. operations due to its Chinese shareholder. In the context of the Pirelli governance dispute, several Sinochem representatives, including Chairman Jiao Jian voted against Pirelli's financial statements for 2024 earlier this year. Sinochem's board of directors also voted against Pirelli for the first quarter 2025. Two years ago, the Italian government intervened to limit Sinochem's control over Pirelli. It also sought to protect its autonomy under a law known as "golden powers" for companies of strategic importance. Camfin is owned by Marco Tronchetti Provera who, as the Italian CEO of Pirelli for over three decades, has held the position of Vice-Chairman. Pirelli posted above-target performance in a difficult environment for the entire automotive industry. Revenues increased by 2% and margins on operating profit adjusted rose to 15.7%. (Reporting and editing by Gavin Jones, Keith Weir and Giulio Pievaccari)
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Reliance Industries reduces its stake in Indian Asian Paints
Reliance Industries, owned by billionaire Mukesh Amani, announced on Thursday that it had sold shares in Asian Paints worth 901 million dollars. India's largest Paintmaker is currently facing Potential antitrust scrutiny While its growth is being New aggressive tactics are a challenge Aditya Birla Group is one of the new entrants Birla Opus Urban consumers as well Cutting back Spending discretionary money is a good idea. Reliance Industries has announced that it sold its stake via affiliate Siddhant Commercials. This company held a 4.9% stake until March in the paintmaker. Shown Below Reliance Industries retains approximately 8,7 million shares after the sale. This represents a 0.9% share in the company. The oil-to -telecom conglomerate has sold 35 million shares of Asian Paints for 2,201 rupees each, a discount from the stock's closing price on Wednesday of 2,208.8. Asian Paints closed Thursday with a gain of 0.48%, but it has lagged behind the benchmark Nifty50 both this year as well as last year. The Economic Times reported last month that Reliance wanted to sell its entire 4,9% stake, and exit the 17-year old investment. The buyers' identities were not immediately known and will be revealed later on in the day, when the exchanges provide details of that session's trading. Reporting by Hritam Mukerjee and Nishit Nair; Editing and proofreading by Harikrishnan Nair, Tasim Zahid
Low grade Australian iron ore changes global benchmark
Pricing service Platts announced that the long-standing global benchmark price for iron ore cargoes, which is used to determine most of the world's trade, will be adjusted by 2026 in order to reflect a decline in quality ore coming from Australia.
The global price reporting agency, PRA, announced on Tuesday that Platts (part of S&P Global Commodity Insights) proposed to reduce the iron content of its benchmark index from 62% to 61% due to a declining quality of Australian ore fines.
In an announcement on its website, it stated that the updated baseline specifications would more closely reflect those of major medium grade fines traded on the market.
Since decades, the benchmark 62% Iron Ore Index has been used as a contracting tool between international buyers and miners.
Rio Tinto, the world's biggest iron ore mining company, announced on Wednesday that the iron content in its Pilbara Blend Lump and Fines had been reduced to 60.8%, but did not specify when this change began.
Rio Tinto's spokesperson said that the change was due to "both customer needs and ore grades available".
The Platts Benchmark Prices Futures, Options and Swaps on the Singapore Exchange is one of the largest iron ore futures market in the world.
Pei Hao is a senior analyst based in Shanghai at the international brokerage Freight Investor Services.
Platts also proposes to reduce the iron content in its benchmark 62.5% Fe China Iron Ore Spot Lump Premium to 62%.
According to the notices, both changes will come into effect on January 2, 2026.
Platts published a daily basis spread of 62%/61% on Tuesday to reflect the calculated value difference between current and proposed specs.
Recently, other price reporting agencies, including Mysteel and Argus, launched new iron ore indices of 61%. Reporting by Amy Lv in Beijing and Lewis Jackson. Hongmei Li contributed additional reporting from Singapore. Sonali Paul, Mark Potter and Mark Potter edited the article.
(source: Reuters)